Bank Aifalah LirnitedBangladesh Operations

Independent Auditors' Report and Financial Statemcntsas at and for the year cnded December 3t,20L5

Submitted byHorvladarYunus &Co.Charte red AccoLlntants

March 30,2076

Table of Contents

L)34

6

7

8

9

10

17

72

1i

Independent Auditors' RePort

Balance SheetProfit and Loss AccountCash Florv StatementStatcment of Changes in EquitY

Notes to the Financial Staterne nts

Highlights on the Overall Activities (Annextrre-A)

Liquidity Statement (Annexure-B)

Bar^nce withother Banks- outside Bangladesh (Nostro Accou'ts) (Annextrrc-c)

Schedule of Fixed Assets inclrrding P'eJtet' Furniture and Fixtures (Anncxtrre-D)

CurrencY AnalYsis (Annexute-E)

Disclosure of Tax Position (Annexure-F)

Financial Stzrtements of Islamic Banking Branch (Motiiheel Branch)

Howladar Yunus &Co.Gulshan Office

Howladar Yunus & Co.House- l4 1{tn floor)Road - 164, Gulshan -1

Dhaka - l2l2Bangladesh

T +88 (0)2 9883863F +88 (0)2 9552989

Indepenclcnt Auditors' Rcport www.howladaryunus.com

'f o thc Managcnrent of Brrnk Alfalah I-irnitecl, Bangladesh C)pcratiorrs

Rcport on tlre Finuncitl Statcmcnts

We have aLrcli.tcd thc accot'npanvinu finartciirl statcrrrcnts of Banli -\l[a]ah Linrttcd. lJanqlurlcrsir

Opcrarions ("tl-re Ilank"), rvhicl-r cor-r-r1>risc tl're balancc sheet ls at l)ccernbcr:31.20 15. arrcl rhc pr:otrtancl loss acc()Llnt, statenrcnt of chanqcs in cqr.rrtr,ancl cash fl()\\, statcurcnt fr>r thc r car rherr t:nclcrl. ancl lsulrx-r-rar-1' t>[ significant rrccountinu policies and otl'rcr csplanat,ln' irrf,rrmati<,n.

Mtrnagcrrrcn t's Ilcs1:onsibili w f<rr thc Iii nrrnciaI S ta tcmcnts

\lanarlctnt:nl is rcsp<.rnsiblc for the prcl>arzrtion c>f financial stlrtcl'ncrlts that gtvc ir tr:Lrc irncl t:rrr ricrv rrr

accorclartcc u,ith IJrn.qladcsh I:inlnctrrl ltcl)ortlr)q Standar-ds as cxplatnccl tn rtc,tc 1.1 arici [or-srrcliintemal control as nrrr)a{Icnrent clctcurrincs rs r)cccssarv to cnable t}rc prcPar:1rt1()11 ()l ilrrrrrrt:r:ri

statenrcnts thut arc ll'cc frour tnatcrial tnisstatct:ir:nt, rvhcthcr cluc tr> tl'etrci ()r' cr:l'()l'. Ihr: lJ:rrrii()ornpanics.\ct, 199I as anrcnclcrl aucl thc Ilangllrck:sh lJurrli rcgrrllrjons rcrpllre tlrt: uranrrrlcnr('nr r()

cnsLlrc cftcctivc irrte rrrrrl arrclit, irrtcrrtll cr>ntr<>l rrrt.l risk lnillragcllrcrrt lirrtctrr )ns ( )a rlrt lirrrrli. i irc'

lnarla.qclncltr is also lccluircrl to r:raI<c a sclf-asscsslnclrt ()n thc cfltcctrr"r'ncss o[:rrrti-[r'ltrcl rr.rtt'rrurl

c<lnfrr>ls ancl rcp<trt to llanglaclcsh lJenli o1r ulstllnccs r>i tlatrcl rud forgcries.

Arrditors' Rcsponsil>iliry

()ur rcsporrsilrrlitv is tri e-xplcss iur opillirln on tl.rcsc f,trrattcirl statctncrrts blrsccl ()n orrr ar-rclir. \ltcconcltrcrecl oru'ar.rclit in accordancc t,ith llar-rqladr:slr Stanclaltls on:\trclitir-rr1.'l'hosc stanclat'cis rcclLrirc

th?rt \\,c con'r1llt'rr,ith cthical rerprircments and 1>l:rn ancl pcrli:r:ur thc rruclit to r>bt;rin rr:asolr:rlljc

llssLrrAnce trLrotrr u,hcthcr thc iinancial st2ltcnlcnts oI t]rc l;rtnh arc frcc it'onr rrxrtcril] r:risstatcnrcnt.

r\n ar-rdit inr'<ih'es pcrlormirrg proccclr.rrcs to obtairr ur.rdit cvicicncc el;out thc nurr>unts arrrl rliscl<)surcs

in thc finlrrr:ial statcrncnts.'l'hc proccclurcs sclectcd depcncl on thc.\uditor:'s itrcl.r;rncrrt, irtclr"rclirrg thcassesslltcnt oi rhe r:islis of nratcrirrl misstatcl.r'rcrrt of the finaucirrl sllrfclr]cnts. rvhcthcr cltrc r,r fi'aurl or:

crlor. ]n maliing thr>se risl< asscssnrcnts. rhc ar-rclir,rr cortsiclcls irrtcrnal c()rrtr'()l rclcvlrrrt r() lire i:rtrirr"sprcltaratiorr ,ri finarrcial statcnrcnrs that givc a true :rncl hrr vicrv in ordc'r ro dt:sirlrt auclir 1,r'r>cccirrrr'sthat are a1>proltliart: irr the circunrstrrrtces, but n()t tor thc ptrrposc oi cx;lrcssullI:rn o1>irt:ou ol-tlrc'cftcctir-cncss oI drc crrtitics intcnral co1ltr()1. ;\n auclit als<l incii:clcs cr-a]urttinq tht: l1>pr<>1'rltutt:rtc's: ol-

accr>trnling 1l<;licies uscd ancl thc rcasorrableness oIaccor:nting estinratc.s maclc bV tn^rt"gct]rcr1t, as \vcllas cvah,ratirrq thc c>r'clall prescntation of thc finarrciltl strtetncrrrs of thc llanli.

We l>ciicvc rhat thc auclit eviclcncc \\:c havc obteinccl is sr-rfficicnt ancl apptoPr:ia.rc r<> 1lr<>r'iclc rr hlsis tor'

t>ur audir <>1>irriort.

Chartered AccountantsCorrespondent firm of Grant Thornton lnternational Ltd

Howladar Yunus &Co.

Opinion

Itr our c>1>ini<>n, thc finar-rci:rl statcnri:rtls ,rI r]rc banli gir c a tnlc rrrrcl fiir vict oI t]rc filrarr<:izrl 1'rosiriorr otthc lJar-rli as :tr i)cccuri>ct 31, 2()15. artcl oi its finrrncial 1>crfolnrurr<:c :rncl irs t:aslr ilot,s tirr lhc vcar rlrcrrcnclcrl iu accotclancc u'ith l]zrnqlaclesir Iiin:rnciai Itcporting Stancl:rrcls as cspLrinccl in rrorc 2. l.

Rcpott on Othcr Legal and Regulatory Rcquircments

Itr uccordancc rvith tl:e Conrpanies -\ct 199.1, the llanli Companics ,\ct, 1991 as amcnclcd ancl thc r:r-rlc,s

atrcl rcsulatiotts issr-red l>r' lJar-rgiadcsh ilarrli. s.e also re port the tirllou inq:

,*'c lutr-r' ol;murccl ali thc inti>rt:uttiorr arrcl cxpllrnarj<>n t,hich r() tl)c bcsr oi clur l<rrorilcclqc :urcll>cLc[\\'cr(: l]ccessarv for thc 1>urposc of our rrudit ancl rnlclc cluc vt:rificlti<ln thercol:

b to thc cs.tcltt ll()tccl dtrring thc ct>ttr-sc of our ar-rdit rr,ork pcrfomrcd on tlte blrsis srared urtrlc.r'thc r\uclitclr's llcsponsibiliw section in fornrir-rg the abovc opinion on rhc financial srilreutcllts ()l

the llrrnl< and consiclcring the l'cpor-ts of tl-rc nralragcl.ncnt to thc I)anglaclcsh l3anli on and-frlurcltntet'rral cotltroJs aucl irrstanccs ()f ir'lucl :turl folgerics ls statc'cl rrnricl thc \lrrrragen'lcltt s

Ilcsporrsrbrhn' ftrr thc l;inanci:rl \tatcrnents and Inrcrnal (-orrtr<;l:

ii.

ttttclnal ar"tclit. internal crlrttrol arrd rtsl< nlallarlcr)'rcr1[ 2rn:1u]1r(:nrcnts ()t rltc l]anli as

disclosed in n<;tc 3.25 oi thc financial Sratcmcnts appeareci to irc rrclecprarc:

rr<>thirtg lras come to our attclltion rcqarding matcrial instanccs o[ florgen'or irrcgnlarrrror acltnitlstrativc cr:ror ancl exceptr()u ()[ an\rthinq dcuimcnta] cr>rnmittecl bl cmPlot cc,s

oItlre Banl< artcl its rclatcd cntitics ancl rlso clis<:losct] iu n<,rc 3.25.it:

lll ()\rr'()plruort, p[()l)c1' [rooks r>t- lccouttt lts lctlr.rir:ed l;r' I.tu' irirvc lrccrr licpr l>r thr, IJrrnl.: so ilras tt aPl)car:ed lrotn ()Llr esalr.rllrlrrjorr of th<>sc books lrrrd propcr rctlu'rts aclccpurtc [or rhcprtrposc of otrr auclit har.e bccn reccivcd frorn i:renchcs not r-isited bv trs:

cl. thc lxt]ancc shect ancl profit lnd loss account dcalt s,ith bv thc rcl)ort ar:c in aqrccn.rcrrr u,ith tlrcboolis of accor.rr-rt;

c.

f.

thc financial statcmcnts oI thc l]rrnl<

rcgulations,llld acc()Llnrinu stanclards

Ilanli

havc bi:crt drarvrr rr;l in conlirrurin, rvith 1'rrcvailinr; rrrlcs.as s'cll ,rs rvith rclirtccl quicianr:c issrrcrl I:r thc lirrngllr-lt'slr

adcqurate provisions har.c bccn rnacle

leco\.c[\r ;

for ach'ances, s,l-rich zrre, in our opiniorr. doul>tful ol'

g. the r:cc<lrds artcl statctnents sr-rl;t-nitrecl l>r' rhc l;ranchcs havc l:ccn propcr:lr" rrraintainecl :ll(lcousoliclatccl in rhc financiLl srirrc|ncnrs;

h. thc irt[oru-yrtion ancl cxplanation rcrluircd l>v rrs havc l;ccn rcccir-cd arrrl ft>r.urd satisllrcrorr,; ancl

i. \\,'c havc rcviet,ed <)\'cr 800"t, of thc risli s'cightcd asscts <>[ thc l]lrnl< ar-rcl har'<: sPent arotrrrcl115() p<:rson hor.rrs for the auclit of thc l>oolis auc] accoLrnts oi thc l]anl<.

Datecl: I)hrrl<l,\larch 30. 2() 1 6

Chartered AccountantsCorrespondent firm of Grant Thornton lnternational Ltd.

rzirl crecl A ccountants

Bank Alfalah LimitcdBangladesh Operations

Balance Sheet

as at Decemb er 31,2075

Note20t{&r1sa

PROPERT}'AND ASSETS

Cash

Cash in hand (lncluding foreign currcncics)

Ilahncc with B:rngladesh Bank and irs agcnt bank (lncludingfrrrcign currcncies)

Balance rvit[: other banks and financial instittrtions'lrr

llanglrrdcsli()utsidc []angladcsh

Ivloney at call on short notice

Investments(lovernmcnt( ) rltcrs

Loans and Advances/Investmentsl .r,r n s. ( laslr t:rcrlir, ()vcrrlratrrs crc./ [rrvcs tnrcn ts

Iiitls purclrascd arrd cliscor.rntcd

Fixcd assets including premises, furniture and fixttrres

Other assets

Non-banking assets'Iota.l Assets

L@I -iab iliticsllorrorvings frrrm othcr banl<s, financial institr,rtions and

age nts

Deposits and other accounts(lurrcnt .\ccourrts and orhcr ;\ccounts

lirlls Pryablc

Savirrgs tl'anli I)cpr>sits

I ixctl I)c1:osiis

llt::rrt:r (.cLtiilcltcs,,i [)t p,,sir( )tlrcr [)c1>osits

Other liabilitiesTotal Liabilities

C'.rpital/ Sharcholdcrs' Equi q'

I IcrLtl ( )Fr'icc lrLrnd( )rlrt'r l{cscrvcs

S Lrr'1:ius u r l) 1 , [it :r.rt rl l ,oss .,\ ccou rt r

'fotal Slrarcholdcrs' EcluiryTotal Liabilities and Slrarcholders' Equiq'

1,5{0,200,9.11 1,108,106,810

2015

Taka

117 ,441,5401,283,152,093

33

6

7

f r 3rlo l? .r l rl [-' i,r' -"Jr-,x,xl| { r,263,s0rJ I I r.i o.ro.r is I

6,931,9'13,743 6,735,23'7,57',1

f6-Jr-l%t? {tl I- 6 ,r rE, rr flI zoo,ooo,ooo I

7,758,125,232

10

7.4 13.81 ti,02fi

3+.r.60;.20 r

53,243,811

665,639,162 534,003,7{8

18,373,016,527 16,553,969,039

-160,000,000 800,000,00011

72 11,434,411,999

1,488,093,260

10r.269,417

3.4 +tJ,700.785

6.391.34u.5.1-

9,752,030,(tt7

I,030.281.816

97.86i,235

.1,(t2? 3(r0.1 39

5,596.51(r.42;

13 1,293,821,6',17 1,329,236,089

73,788,233,676 11,881,266,706

1.123.010.10+

25ii.0.16.9 3(,

503,:65.211

5,184,812,851 +,6'72,702,333

_E,3E]lt,sn_ ___19,sae61012_

14

l516

: frlr

57,66',7,569

{.{20.(rl-.41170. li 1..510

IB1.e]i.312

20tsTaka

20t4Tal<aNote

OFF-BAI-ANCE SHEET ITENIS

Contingent liabilitics,\cccptanccs & [irrdorscmcnts

Lcttcrs of Guerantec 77

Irrcvocablc Lctrcrs ofCrcdit 18

lliIs f<rr Colle ction()drcr Corrtingcnr Ijabilitics (tsangladesh Sanch'.rypatra)

Other commitmqntsI)ocumcntirry crcdits and short tcnn tradc-rclatccl rransactit.rns

lrorrvard asscts purchasccl and tbrward dcposits 1.llaccdUndrawn r:otc issurnce arrd rcvolving undcrv,,riring facilitics

Undrawn form'.rl standby facilitics, crcdit lincs and otherc<-lnrmitmcnts

Toral Off-Balance Sheet items including contingent liabilities

395,522,200

395,522,200

3,061,197,990 2,831,056,395

I'hc annexcd rlotcs i<rrm an stll tLrmc n ts

,\btr Noycnr i\Id. I(hasru

Head of Financc & Admin.IUul

Countrv Operations

,\s llcr our anrrcxcd rcport oI cvcn datc

Countrl Ilead

Dated: Dhal<a

\[;rrclr 3i). 20I6

2,665,675,?90

I,2,+9,53;,213

32t,4t5.471

680,51 2,906

293,885,200

120.325.000

lnrcrest incomc/profit on invcstmctlts

Intcrest paid/profit sharcd on dcposits and borrowings ctc

Nct interest/(expenses)/net profit on investnrents

]nvestrncnt incomc

Oornmission, cxchrnge and l>rokcrrrge

() rlrr:r opcratirrg incon-rc

'fotal operating income

Salrrics and allorr,itnccs

llcnt, taxcs, insuratrcc, clcctiiciw etc,

l,r'gal cxpcnscs

I)rlstlge, stxrnp. tclccornmuuictttir,n crc

Stari( )ncry, Printiilg, .\dvcrtiscrncrtts ctc.

(lorrntr'!, ilcad's salary and allorvanccs

.\udirors'fcesI)cprcciation and rcpair of bank's assets

Orhcr cxpcnscs

Total operating cxpenscs

Profit before provision

l)rovision irrr l6a6s and advanccs/invcsrmcnts(ieneral provision

Spccitic provision

I)rovision frrr off-b',rl:rncc shcct ite nls rclcascd

l)r'ovision firr dirninution in valuc oI itl'cstnrcnts

C)tlrcr provisiorrs (Provision [or l(cb'atc of (]ood

'foral provision'fotal (loss)/profit before tax

l)rOvision tor ttxatton(,rrrrcrtt

I )c lc lrcd

Nct (loss)/profit aftcr tnx

Borrorvers)

Bank Alfalah LimitcdBangladesh OperationsProfit and Loss Account

for tlre year ended December 31, 2015

Note

)',

23

24

25

26)1

28

29

30

31

32

33

2075

Taka4A'I-aka

100,35{,423

633.601,05.1

120.2;5.f)rr)

2r.9 r0.9-+9

838,76'?,692

939,722,775

193.2e0.92'7

1 r8,105,739

| .5.t7.1 B2

9.8(r6,79tt

l t. l 23.9?.1

I 8.7U1,./l()

15 3.1 5U

3t,121,4(>2

+7,697.4r8

432,298,428

506,823,687

60.,+{)0,2.5ii

3.1

20,000,000

(13,615,479)

575,403,899

66,207,427

440,616,26!

2 r .r,8e7.83 l

t 'I'hc annexcd trotcs form an

ile,*;\bu I.voycnr ,\1c'|. Khrrsru

Hcrrd of Finrtrtce & Admin.

of these financial stlterncnts

eshi

368,631,999 226,718,135

Dated: Dhaka,\ [arch 30.201 6

,\s pcr ottr ttrrtcxccl rcpoft oI cvco cliltc

zo l- ?rr--8s2,rri f 8r6sr9% I21 I (arz,rr,),+sq)ll r;zo,r;:,sol)l

187,773,425

697,923,815

122,113.67 )31,843.895

851,94 1,385

1,039,714,810

211,304,313

132,418,255

3,062.981

10,338.637

1 3,938,1 1 I

20,i90,270553.1 50

32,090,356

53.630,237

477,926,390

561,788,420

2,301,115 5,807.163

Cotrntry Operations Head

S,.\ \. i\lasnrr'

Corrrrrrv Ilcad

Bank Alf'rlah LimitcdBangladesh Operations

Statenrent oI Changcs in Equityfor the year endcd Dcccnrber 31, 2015

Hcacl Officc Fund Orher Rcscrve

Taka Taka

4,120,627,4i1 70,t51,5,10Balancc as at Januery 01, 2015

Changcs in iccorurt:ng 1>r>lic1

l)rufit rransicr ro i lrrel C).llcc

Surpl us,/de ficit on accoLrrr r , ) f ic v,ll uadr lrr r> f i n tesrrncrrtsCurrcnct, lrrnsl:rtron clificrcrrcc

Nct grin-s and Irsses nor recogmizcd rn thclrlcornc stitcrncntNct profit f()r tlrc pcnoJ

Balancc as at Dcccnrtrcr 31,2015

Balance as ai Jrrui$'01, 201{

Chargcs n accr)untrlg l)olic)'llcstrtccl brlance

Surplus/dcfi cit on rccourrt i)[ retaluihon of inl estrnc!]ts()urrcncy translrtior di [[crcnccNct.garrrs xtld l{)ssej n()t recoglrrzcd rrr rhc

inc<::rtc stitcrncrrt

Nct prrrtit lrrr titc pcrrod

Balancc as at Dcccnrbcr 31,201{

363,6-il,999

To$l'falirg

t,672,702,.\3)

(.10,79(J.l lr,)Itt,,il15. r,),'

:.j8:],1_] r

'l(,li,6l I ,99,,

-----il?1pi9l!L -----&99{fl!- ---:!ll!il-1l-

--:J!L!.E qil-

Prolit and l-oss

Takr

t81,923,322

(16,79(r.l'lr))

- 1t]7,1il15,1i9(,

2,_18r,233

(-rJ,795,ll3) 1,.10r':,5 7 8.600

r-,))l.r)1

i1.128,r55)

2:(.,r- I 8..1 l5?3rJ,718,435

____L,w,6n,n)_ _______20,E_li1g_ :]!!2IJ4- _!!!j!u.!_

1,:t23,75b,326

(3,128,;ss)

21,6t7 ,387 .00

11,5-l4,l 5i

frr r

Cash florvs from operating activitieslntcrcst reccipts

Intcrcst l)aymeutsI )ivitlencls rcccil>ts

Irces and ct>nrmissiorr rccciptsliccrlvcrics r)rr kr:tns prcviotrslr rvritrcrr oiiI)ayrncnts to cnrplovccs

I)tyrncnts to supplicrs

Inconrc taxcs paid

Itcccipts fronr other opcrating activiticsI)aymcnts for othcr operating activitics

Opcrating (loss)/profit before changes in operatingasscts and liabilities

Incrcase/dccrcase in opcraring asscrs and liabilities[.()arrs :rr](l acirartccs to custor))el-s( )thel assers

I)cposits from other banks

I)cposits from custonrers

Other liabiIties

Nct cash (uscd to)/from opcrating activities

(lash flos's from investing rrcril iticsl'r,:ce cils frrrrn salc/rcdcrnpcion of sucuri:it:s

I)evlr)ct'tts tirr 1:rrlch:rsc oI sccurrtics

I)r.rrchasc oI propcrty, planr & cc1ui1;tmeni

Srlc oIpropcrry, planr & etluiptrncnrNet cash from investing acrivities

Cash florvs from financing activities

Bank Alfalah LirnitcdBangladesh Oper.ationsCash Florv Slatemcnr

tlre vear ended Dcccrnber 31, 2015

Note

35

36

3'1

38

39

40

47

42

201,5

Taka2011'faka

43

4-l

45

46

47

(250, I 4 r,658)

3,308,025

372,033,369

1 ,310,348,013

52

7,382,546,683 400,797,379

1,646,488,701 739,711,356

Nct (dccrcase)/incre asc in cash and caslr cquivalents

Cash and cash eqtrivalcnts at bcginning of thc 1,cirr

I .i[e cts r>i cxcllilngc rat(: fltrctuations on c;rsh antl clsl-retluivalcnrs hclrl

Cash and cash cquivalents ar end ofthe year

Cash and cash eqrrivalents at end of the year reprcsent(.ash in hrod (including foreign currcncies)(l',t[.] l:<>rrorvinu

lhlirncc u,ith lhrrgladcslr llanl< anrl rrs ascrrr bank (irrclrrdir:gftrrcign currcncics)

Ilalrtnct: rrith orhcr l:anl<s arrcl tinancial instittrtionsl\[orrc1, at call tncl or'r short noticc"1'rcrrsury brlls

liangladcsh Itrnl< billl)rrzc bor:d

t51)..;16.96'

(3,105.-152.1 +s

i28.rj2C,r.t65

(3,071,726,016\

(46,790,1 1 0)

(767,608,673) (2,315,009,690)

,,646,nr1u 4)6124:/W

2.1u3,233 (3.1 2S.855

___3199,88r87L __?{46)0e,311_

117,44t,540

(.r60,000,000)

1 ,283,1 52,093

1 ,540,200,941

89,300

48

4'

50

i I I ,t)49,926':(1,;16,946,.11 t)

(t i,783, I 19)

5,372,192

(1,767 ,30',1 ,264)

-.\, ..,'-';) .

.C'-'.r \.

;'.'$Y'c ,':'\')

,-12,'>19,65 t-

(61 6,1 98, r 08)

35,0u:, ,4 1

(226.610,513)

( 158,61.3,932)

(225,151,e07)

8r i ,960,.+41

68,,142,

263,942,076

858,724, I 86

(?68,a82,1 ++;

28.J0E.Ct5(r

(201).?82,;7r',

(r41,14;,966)

( r 26,885,9.1.r)

t-14, t- 49,133(56.053.87;

359,528,977

161 .661,079

(s0(i,000,000)

1 ,0.rtj.98s,ti8:1 . r 08.1 06,81 0

l, t21,._139, j.li

1 0,200

(92:..+4 2,501i

133,{96,09-:.+48,996,9?.1

888,305,678

12.823,321

2,480,883,871 2,(t46,109,311

Ban[< Alfalah LinritcdIlangladesh Operations

Nores to the Financial Statcrncnrsas at and for thc ycar cndcd Dccembcr 31, 2015

I Rcporting entiry-

Bank Alfalah Limited, Bangladcsh Opcrations (the Bank) arc branchcs of Birnl< ,\l[alah ].ir:rired (rhc pa1g61comPxn,) incorporatcd in l)akistan. 'l'he Bank is domicilcd in Bangladesh. 'l'hc addrcss <>[ rhc ljarrk's c6Lrrrrrvofficc is 168 Gulshan.\vcnue, Dhal<a-1212.'l'hc Bank srartcd its opcration in Btrrgledcsh or-. lhl 16, 2005 l>v acqrrLring Slrarnrl ll.rr:1. of Ii;rlrr:rrrr'i [)h:r]<abr:rnch rlltcretit)ns is a llnnclt oI thc 1:arcnt con]l)an\'. 'l'hc ]lrnli lr:rs 7 br:rnchcs .rs o1 L)cccrnbe r jl, 2615.l,rccpt I lslamic lirnlirng Br:ir:ch, titc rcst 6l)rarrcllcs rull (rlt c.)nllttcrcial con,,'t'rrri6rral I>asis.

1.1 Principal activities of rhe Bank'l'lrc Iiauk primarilv is involvcd in providing all kinds oI cr>rnmcrcirl bankirrg scrviccs ro thc cusr,rrrr'rs. 'llrt:Banl< offers scrvices for all commcrcial banking rrceds of the customcrs, which irrcluclcs dcposir birr:kirrr1, klarr.and advances, export imporr ftnancing, ctc.

2 Basis ofpreparation2.1 Statcmcnt of conrpliancc

'lhc tirrancial statclllcrr(s oi tlrc [Jlnli drc prc1.1rcJ in,rccorrl:rncc rvirh l].rrrglrrrlcsh I,inlncrai It,cl)r)iurl.r{Sr:LnJ:trds (Bl.rllS) :rncl titc requircrnunts ()f Illu liarrk (.or:rprnics .\ct 1991, tLrc rulcs rrrirl rc!trli:rrons rssucJ l>rlilrrtgl;tdcsh flarrli, tlrc (-ornparrics ,\ct 199.1. Iu c:rsc urty rcrlrrircmcnt oi r]rc Ilarrk (.()rirJ)anics ,\cr l9(r1, arrrl

provir-ions arrd circulars issucd l.:r'Ihngladesh llank clifier wirh rhosc ol BFllS, thc rcrlLrircmcrrrs oI rhc IJ,rrtliCompar:ics Act 1991, and provisions and cilculars issr"rcd bv Bangladesh Banl< shall prcvlil. \{ercrial <lcparrurcsfrom the rcquirements of BFITS arc as follows:

i) Invcstnrcnt in shares and SccuritiesBFRS: As pcr rcc;uircrnctrts of B,'\S 39 invcstnrent in sharcs and sccurirics gcrrcmlir fiLlls cirlrcr unclcr ''rr l;rirvaluc through profit tr:cl loss account" or unclcr "avlilablc ftrr salc" *,hcrc anv chanuc irr thc tiir vaiuc (as

t:tcasttrcd in accordattce rvith BIrliS l-i) ar tlrc Yt;rr-errrl is tirl<crr to llrotitancl l()ss:lcc()uril or rcv:tltraliorr rcscrvcrcspccrivclt.

Bangladcsh Bank: ,\s pcr Blil)t) circular no. 14. darcd.Junc 35,2003 iur.csrnrcr)rs irl (luorc(l sh.rrcs ;rnilur'rqtr()tcd sharcs arc rcvalucd at thc rcar cnd lr urarliet pricc and as pcr bool< vahrc of l:rsr aurlircil l>.rhrrcc sl:ccrrcsPcctivcly. l)rovisiort should bc midc for any loss arising [rr>nr dimirrution in valuc oI invcstrncrrr; ()tl]cr\\.ij(irrr.cstnrcrrrs are recol4rized at costs.

ii) Rcvaluation gain/loss on Goyernment sectrriticsBI:RS: r\s pcr retluiremertt of ll \S 39 rvhcre 't'-bitls ;rncl

-l-bonds will f',rli untlcr rhc carcllorv r,[ "hclcl frrrrlatlirrq", iny ch:rnllc ir: Ihc farrvaluc ofhcitl tot rrldins assets is rccollrized throuuh prolit arrci loss rccrrrrnr.

Sccuritics dcsignarcd as l'.clcl to nranlriry arc rncasured it irnortizcd cosr nrcthod and irrtcrcsr incornc is

rccogrrizcd through thc protit & ioss ,rccouut.

Bangladesh Bank: IIFrI' sccr"rritics arc rcvalued on thc bxsis of nrark to nrarl<cr arrci ar yc:rr cnd ilnv ll;rirli ()n

rcvaluatiorr of sccuritics whiclr heve rtot marLircd as at thc l>alance shcet datc arc rccognizcd irr orlrcr'rcscr\:es rsil Part of cquity and artv l<>sscs on rcveluation r>f sccrrritics rvhich hrvc nor mrrturc(l es ;,i tllc Lrrrl:rrrcc slrccr clrrcarc chargcd irt thc profit aud loss ilccourlt. Inrcrest r>n I-lijl' scctrrities iocludirrg llmorrrzrltiorl oi rlistor:rri lrt:rccolltiTcd in rhc protit artcl l<:ss ttccoLlrlt. II'l'i\l scctrritics which h.rvc not rn;rtrrrcd irs ilt rhc b;rl:rnci sirtcr rllrcarc anlortizcd at thc Ycar cild itil(l 1;.rins or losscs 0n xmoftizati()n are rccortrrized irr r>thcr rcser\:e irs:r p;rrr c>f

cc; uirv.

iii) Provision on lorns and advanccsBFRS: r\s pcr 13.,\S 39 an cntin' should stalr the inrplirmcrrt asscssmcrlr bl considcling rvhcrher ol:jccrivccvidcncc of irrptirnrcnt cxists frrr t-rrrancial xsscts thit arc individuelll siguiiicanr. iiir iirrirrrcial irsscrs lrc rror

inclividLrally significant, thc asscssmcrlt can bc pcrfrrnncd ()il an indivirltral ol c<>llcctivc (rrorrtolrci llasis

'a!

.i $1(

ir)

Bangladcsh Bank:.\s pcr Hiil'][) crr:cuhr No. l{ iSeprcmbcr 23.2012), fi]il)l) circular \o. 19 (l)cccnrbcr:27.2012) arrd BRI)I) circuhr No.0i .Il,rs 2\),20i3) a gcrteral pr<,rision;rr 0.2590 rr> 5ci rrrr,lcr Lliiicrcrrr c.ucl{()riciof r,rrrclassificd lolns (goodlstandrrd lt>rrrrs) has to bc rnlintained rcgardlcss oI objccriuc cviclcrrr:e oIimpitiLrncrrt. Also provision for sub-star.rdard lolns, doubtful loans and l;acl losscs has to bc prr>vidcd at f()9/0,50ok and 10070 respcctively for loans and advarrces depcnding on rhe durarion of r:r'crduc. .,\g.rin as pcr ]]l(l,Dcircular no. J4 dared Seprember 23,2012, a general provision at'lo4 is rc<luircd tr> lrc proviclcd [r>r .rll off-balance sltcet cxposurcs. Such provisi<.rn policics erc rrot s1;ccificallv in linc with thosc 1:rcscribcd by lt..\S 39.

Oth<:r cornprehcnsivc incorneBIIRS: .\s Pcr li.\S 1 ()ther Coml.lrclrcnsirc lncorlc is a c()rnl)oncnr of t-rrrrrrrcial sriltcurcnrs (,r rllc clcrnertrs oiC)rhcr (.orlrprehcnsivc [r:comc arc to be includcd irr a Single Oonrprchcnsivc lncornu (O(.1) Sr:rtcrlcrrr.

Bangladesh Bank: Banghdesh Bank has issueil templatcs ior finarrcial srrrcmcnts whrch rvill strictlv [:cfollowed by all banks. 1'he templatcs of financial statemcnts issucd by Bangladcsh [Jank do nor irrcltrclc orlrcrComprchcnsive Income nor are tirc clcmcrrts of Othcr Complehcrrsivc Irrcomc rllorvcd to irrciudc in n SinqlcOr>mprchensive Incornc (OCI) Statcrncr:t. ,\s such tirc c{)rnl)irnv docs rror prcl)arc tlrc r>rhcr (:()nrl)rcllcnsl\/c

incorne stiltcn)errt. I I<l$,cvcr ( lcrrrLnt j of C)(ll, i[.rnv, arc sh0wn in rhc st.rfclncnts 0i cltangcs rrr ctlr-tirr..

Financial instrutnents - presen(ation and disclosureL: scveral cascs Baoghdcsh Benli guidelines cxtegorize, rccognizc, rncasrrrc arrd 1.lreser:r Frnarrcial ir)srrurncntsdiffcrcntlv from tltose prcscribed in BAS 39. r\s such some clisclosurc and prcscntltior] rc(luircmcnrs ot lltilis lrnd lii\S 32 cannot bc madc nr thc financial starcorerlts.

Repo transaccionsBFRS: \\i lrcrt an cntitv sclls a rirtrtrrcial rssct a,rd sinrtrltlncorrslt, cnt( rs irtr() lr) at.rJCr.tlcnt ro rcpurr:ir:rsr rlrritssct ior a sinrilar assLr) at a tixcd pLicc ort r fuirtrc datc (r'cPo or st()cl( lcn,hng, rhc;rr.,;rngcolcnt l. ilccour'ti'(j(l

frtr as a dcposit, arrd rhc undcrlvirrr; ilssct contiilucs to bc rccoguizcd irr rhc crrtiry's ti:urncial srrrcmcrrrs. l'histrarlsacti()n will bc trc:rrcd as l()in and thc drt-fercncc betwecn se[ing price;rnd rcptrrchase plicc rvill bc rrcarcdas intercst cxpcnsc.

Bangladcsh Bank: r\s per DOS (lircular No. 6 datcd 15 July 2010, rvhcn a banl< sclls a finrnciirl asscr;rrrtlsinrultarrcously cntcrs into an agrccnrcnt to rcl)urchasc thc assct (or a sit::ilirr assct) xr r tlxcd pricc oit I [ulrrredare (re1:t, t.lr stock lcnding), titc arrartgertrcrtt is acc()unted fir as l nornral salcs rmnsircrir>ns ,urd rhc lin:rrrcialrlsicrs a!c clcr:cco{rtizcd irr rlrc sellcr's l:r:oli ;rircl lccognizcd irr tlre buvrr's bo,rl.:.

sii) Iiinarrcial guaranteesBIrRS: r\s pcr ilAS 39, firrancial {tueralltecs ilrc cootrilcts that requirc il:1 cntitv to nral(c spccitlcd l)avrncrrrs ro

rclmburse the holder f<rr a krss it incurs because a spccificd debtor firils to mll<c l)aymcnr rvhcn duc inaccordxncc wirh thc tcrms of n dci:t instrunrent. lrinancill gurrantee liabilitics a(e rccognized initially ar rhcir tirirvaluc, and thc initial frir value is arnortized ol,cr the lifc of rhc firrancia] Iluiranrcc. I he firrrncial lruirrirrrccliability is subscqucntlv carricd at thc highcr oI this arnortized amoun! and thc prcscnt vithre of arrv cxpccrcrlpavntcnr s,iter: ;r p:tyttrent unclcr thc qrrar:trtrcc ltas becor:re prr,l:al>lc. l;in:r,rcial guarrilnrccs rrrr: irrclirtjr'.J ri,rrllirrotlrcr liabilirics.

Bangladcsh Bank: .\s pcr ill(l)l) 14, firr;Lrrcrel lluacrrrtc(s such rs I./(., 1.,,'(i rvill Irc rrcarctl :rs t)[l-llal,rncr,Sttcct itcrns. No lilbilitv rs rcc()grrizc(l ti>r rhc gu;rrantcc cxcept rhe cash mar!'ir].

viii) Cash and cash equivalentBFRS: Cash and cash cquivalcnt itenrs should be reported as cash itcm as per IJAS 7.

Bangladcsh Bank: Sonre cash and caslt etprivalent itcms such as 'rnonc,' :rt cxtl and on shorr noticc'. trcasufl,

bills, prizc t>oncl artd Bangladcsh lhnk bills ilrc n()t shown rs c:rsh and crrsh ctprivalurrt. lUoncr ar crrli .rrr,l orr

shr>rr nr,ticc is sltorvn as [acc itcrn irr balartcc slttct. arrtl trcasrrr\ ilills, prizc lr<rrtds:rrtrl Brrrrlll.rrl,sh l].rrrI i,iili.rrcslr, rr,r'n in irryustnrcrrts

r,)

\ i)

tY'

i*) Non-banking assctBFRS: No indicarkrn of Non-banliing asscr is krurrd in anv llFliS.

Bangladesh Bank: As pcr Blil)D 1-1, thcrc must cxisr a facc ircrn named Non-bar)king asscr.

x) Cash florv statemcnr- BFRS: (lash flow statemetlt can bc preparcd cithcr in dirccr mcrhod or in irrilirccr rncrlrocl. l'l.rc l)rcscrrr:rrio. is

v selccrcd to Prcsctlt tltcsc crsh tlrlus in i n):rnrlcr rhar is mosr approprtarc tirr rhc l;trsincss c>r. inrlrrstrv. 'l 6cntcthod sclecrccl is eprrlicd consistcrrtlv.

Bangladcsh Bank: :\s pcr Bl{l)D 1{, cash llou' is thc rnLrrurc of <liruct:rncl inrlrr.cci nie rirocl

xi) Balance with Bangladcsh Bank: (Cash Reserve Requircmcnt)BFRS: Belance rvith Bangladesh Banl< should bc treatcd as othcr assct as ir is nor avarlablc frrr usc iri d.r\ r() (l:ll)pcr.xrions as pcr i).{S 7.

Bangladcsh Batrk: IJalancc r,"'ith ilarrgladcsh }J;rnl< is rrcrrccl as cash aud cash ctluiv;rlerrrs.

xii) Presenrationofintangiblc asscrr BFRS: tntangiblc assct must bc idcnrifierl anJ rccogrrized. .rorl rhc disclosulc rnusr be Eivcrr.rs pcr ti,\S.i8

-Bangladcsh Bank:'I'hcrc is no rcgulltion for intangible assets irr BIIpD 14,

xiii) Off-balancc slrcet itemsBI:IIS:'l'lrcrc is no cottcept t>f off-balarrcc shect itcms in arrv BIrtiS; he ncc thcrc is no rc.tluircnrcnr of disclosrrrcof oi[-lr.rl.rncc slrecr irc:ns.

Bangladcslr Banl<: r\s pcr lltil,l) 11, ot-f b;tl;rucc shccr ircors (c.g. \./C.. l./(i, crc.) rrirrsr bc rliscl,r:crlscparatcly in face <>i b..rlance shccr.

xiv) Disclosrrre of appropriation of profit

- BFRS: 'Ihere is no rcquircn:cnt to shorv appropriation o[ prolit in tlrc fircc of statemcrrr of cr>nrprchc.rrsrvcincome.

Bangladcsh Ilarrk: r\s pcr Biil)l) 14, an appropriation of profit sh<iuld bc disckrscrl in rhc facc oF 1.lrofir anriloss:tccotrrtt.

x1 ) l,ozrns an<l adl,ances nct of provisionIIFRS: [.,oans arrtl advanccs shoulJ bc pr-cscntcd ncr of prt,r'rsiorrs.

Bangladesh Barrk: r\s pcr Blll'D 14, provisir>n on loirns and advanccs arc l)rescnrcd scp:rrrccll as lialriliry a11cl

carlnot be t.rctted o[f against loiuls rrrd advances.

xvi) Rccognition ofinteresr in suspenseBFRS: [.,t>arrs artd advrtnccs to cust()mcrs arc gcncrallv cl;rssit'icd as "loarrs lrrd rcccivlblcs" as 1>cr l].,\S 3g;rntlirltctcst inc()ole is rccoqrtizcd tl'rrouglt cttccrivc intcrest rarc mutirod ovcr thc rcnn oi rlrc Lrln. ( )ncc .r Irur isirnllaircJ, itttcrcst itrct,rnc is rcc,rgrtizt'd irr 1:rotir a,rcl loss;rcc()u,lt r)rr rhc s;rrrrr.b:rsii llrrscil orr rcvi:t,.1 crn\rrril:lnl()Lllll

Bangladcsh Ilank: r\s per BI{PD circular no.l4 datccl Scptcmbct23,2Oll,r>ncc a lorrr rs clrrssiticcl (orhcl rhanbad loss), intercst on such loans are not allowcd to be rccognized as income, rithcr rhc corrcsporrdirrlr ilnlour)lneeds to bc credited to an iflterest in suspensc account, which is prcsentc<i as liability in rhe balarrcc shccr.

2.2 Basis of rueasurcruent'l lrc tin;rrtcial stiltctl)crlts ol rhc Ilarri< lravc btcrr l)((p:rrcd olt rhc Ilisrorical cosr I:asis c\ccpr ti)r rlrc t''rll,,rrirrq.

- G<lvcrlrtttctlt'frcasun tlills and [Srrnds dcsigrrared es'l'lcld tirr'l'ratlirrg (l{lrl)'ar 1:rcscnr valLrc rrsirrsrnad(ing to nrarl<et c()ncepr u.,ith gairr crcditing rcvaluatiol) rcservc

Govcrtttnctrt Trcasuq Bilis and B<lnds designated ls 'l Icld to i\.'latr-rriry (l I'f i\D' ar prcscrrr valuc Lrsilg

+\Yc-lr)

ilr'r)ortlzat()n colrccPl

Ir)vcstment in shlrcs oilistcrl comp.lrrics

lnvcstmellt in untluorcd shirrcs

2,3 Functional and presentation currcncy'l ltcse flrtrrtciat statcmcnts arc prcselltcd irr Bengladcsh '[akl il'alil) rv'hich is the ]J.:rrrk's tuncrir:nal currcnc)I::xccpt',ts otherwisc irxlicatcd, [irrtnci:tl intirr'marion prcscr:tcd irr'['akr has becr': rourrdccl ro rhc ncarcsr irrru.gcr.

2.4 Use of cstimates and iudgments'l'lrc prcparati<>n of thc thesc financid staternents in conforruiry with Bangladcslr Banli Cir-culrrrs rrrrrl Illrl{Ssrctyuires managcrnent to meke judg,mcnts, cstimatcs and assumptions tlut xfiect thc aPplication oi accorrrrrrrrg

policics and the reported amounts of assers, litbiliries, incomc and cxponscs. r\cturl rcsults mal diitcr lionrtlrcsc esti:natcs.

i-lstimrrcs antl undcrlvinu assurnprions are rcvicwcd or) an ()ng()inij basis. l(cvisir-rns ,,, "aa,ru,',rinu

csrlrrl.rtei:rrcrccoguizcd in the 1:criod in'-vhich rhc cstimarc is rcviserl :urd in ro! futtrre yrcriocls alrccrcd.

Inforrtrrrion abour sigrrificant alc.ts of cstir:rttion rrnccrlairtn lrrtrl crirical jutlgrtrcrtrs irr applying :lcc()uirrlllripoticies that havc the nrost sigrritic:rnt eitccr orr tlrc amourrrs rccogrrizcd in rhc tlrrarrcial srrrcrrrcrrrs:rrc

describcd in notes 3.7,3.11.3 and 3.12.

2.5 Rcporting period'l hcse tinuncial sratcnrcnts covcr one calcn<lar vclr fronr 1 Inrruarv to l)ccemlrcr 31, 201 5

2.6 Cash {lorr'Statement(lash flr,w srarcrucrlt has lrccrr 1:r'cp;rr:cd irr rcc,rrcl:rncc rvirh rhc lllil'}l) (.irculur No l.l,issucd by thc Banking )lcgulariorr & I'olicy l)cl)artrncnt t>f Barrsla(lcsh lhnli.

Staternent of Changes in Equitl''I'he Statcment of cl'ranges in ccluiry rcflccts in&)rmation aboLrt the incrcasc or dccrcasc ilr ner rsscts or rucaitlr.

Liqrr idi ty Stutcrncnts'l lrc liquitlitv sratemcr]r of asscrs nrlC liebilirics ls ()n thc rcpottinll datc hls lrccn prcl:arcd orr rcsidtnl niatur'ir,,'

rcrln rvhich has bccrr givcn i,r thc Strtcrncnr.

Signifi cant accounting policics

]rf"ffi.1:,,* policics sct out bclow have been applicd consistcndl t<-r all periods pr:escntcd in thcse finrrrcial

Foreign ct!rrency'li'artstctiorrs in lorcign curlcncics arc trartsl:rrccl irto thc funcriorrrl cuncncy of thc llarrli at tl)c sp()t , sch:rrrgc

rrrrc lLr rlrr d:ire oi thc tr:rrrsacri,,rr.

i\lonerrw asscts and lirbilitics dcrronrinurctl in tbrci.Er ctirrcncics irt thc rcportir)q Llatc irr'c trlnslared irlr() tlr(r

furtctiorral cur'rency ar thc spo( cxclrrrngc ratc at tllat date. Non-moner'Jrv asscts and li.rbilitrcs rlcrrorlrirrrtctl irr

ft>reign currcncics that are rncasured at firil valtrc ar-c retranslltcd inro thc Funcrion:rl currcncv:rl rltc slx)r

cxchar:ge rntc at thc datc that thc flair valuc was dctcrmincd. Nou-monetary asscts arrcl liabilirics tiurr :rrt:

mcasurcd in tcrms of l-ristorical cost io a f<>rcigrr currency are translatcd using thc cxchar'rgc ratc at tllc d:ir(: oa

thc transactior:.

llorcigrr currcncv diffure uccs arisirrg on trarrshtion arc rccr.,qnizctl i'r prt,fit or klss cxcclrr iirr t xch,rrrr.tr:

rliffcrcrrccs on "[ [crd ofr-rcc fir,r,]". u lrich is rcc()l:lrizc(l dir'ccrll irr cqrriry

2.7

2.8

3.1

,9:\,il'. to-{-r\

€lts.:,;)\91iry"

3.2 Intcrcst income/profi t on investrnentsItttcrcst tttt lotns artd tdvanccs/protit or: invcstnlcnts is calcuiatcd on rlailt prodLrcr blsis trrd acclrcd;rr rlrt.cnd tlf cach morrth, but clrargecl to cLrst()r'ncrsr accounls on t;uirrrcrly basis. Irrtcrcst on lo:rns irrrladvanccs/profit olt invcstmenr is tal<crr int() ilrcomc lccoLult prop<lrtirrnlrely fronr profir reccival:lc ilcc(,Lr)r.Ovcrduc chargc/compcnsation on classified irlvcstmcnts is tr:rnsferred ro intcrcst,/'nrofit sr-:spcrrsc :1cc()1nrirrstcad of irrconlc accour)t.

]otcrest accruecl t>r: loans rnrl advarrces/profir accrued on i,rvcstnlcnrs hll urrclcr SLrb Stancirrtls 'SS, irrrrl

l)tlul;titrl (I)[) carcgoLv alc crcditcd to lrltcresr susl)ensc,/protit sLlsJ)cnse:rcc()unt irrstcrtl ofincorrru rr:cr,ulrl.lrrrcle,ir,/profit is rrot ch.rrgcd orr bad antl l<,ss lorns as pcr guiclclirrc <lf lianrsladcsh llarrl<. Such inrcrcsr.'prrfir i:l<ept in scparate rncrnorandum iccourtt.

Inreresr/profit on classiftcd loans tnd adr.anccs/invostmcuts are crcditcd to irrconrc ()rr l cilsll rcccipr l>rrsis.

lntcLest/1lrot'it on flrcd clcposir with ()ther banlis are creditcd to i,rcornc on accru:rl l>asis.

Invcs mrcnt IncomeIocotttc ott inr/estrrrctrts is recr,gtrizccl ort a;crtral lrasis. Invcstittcnt irtcol]lc inclutlcs cor-lpotl Jrtotir rln lrc.Jsur\'bontls.

Fees arrd conrmission income'l'hc lJank cartts fccs and comrnissions frorn drvcrsc range of serviccs provided to its cr-istorncrs, (.rrnrrnissrorr

on Lerrcr oI Guarantcc is rcct>grrizccl on accrual basis. Othcr tecs and conlrlissi(]n incomc is re cor{nircd or} ir

::calizatit>n basis.

3.5 Dividendsl)ividcnd incomc is rccogrttzccl rvltcn thc rrllhr to rcccivc inconrc is csrablishcd. Usrrrillr'this is rhc er rirvitlcrrtl

date for cquiry sccuritics. l)ividcnds- are l)rescnrcd iu invcstnrcrrr incomc.

3.6 Leasc paynrentsI)a)'nrcnts madc urrtlcr opcrxiing lcascs arc rccoqnized irt profit or Lrss on a straighr-linc b:tsis r,r,cr rht rcr'rn oIthc lctsc.

3.7 Tax'l'ax cxpcnsc compriscs current alrd dcfcrrcd tatr. (.:rirrer'rt tar .rnd de[cr(cd rlx are [cc(,.r{r'lizccl irr lrcolit rlr klss

cxccl)t to thc extcrrt tlrrt it rclarcs ro irems rccoLrliTc(i dircctlv in crluirv.

3.7.1 Crrrrenr tax(lurrcrrt rxx is rhc tax c-{pccted to l>c pavalrlc on thc tlxable prolit lor thc vclr, ca]cLllirrc(l using mx rarcs as

prcscribed in the Inconre'l'ax ()rdinance (fl'()) 1984 and rclc!'ant Spccial l(cgrrl:rtorv ()rcicrs (Sl{O) :rnrl rnlad justnrcrtt ro tax Pxyal)le in resltect oi previctus )'e:Irs.

(lunerltlv thc irrcor-,tc trtx rarc :t1:1>licablc tirr banlis is

42.5'''{,; rdditionallv, b:rrrks hlvc rt> pau cxccss profir rxx ar 150/; ()n so rruch t:i tlrcir pr'ohrs as cscccds 50(rb r>l'

tl)call]r'elptcofthcirc:rpirll andrcscrl'cs:rstlcfirrcdinscctir>nl6(l ofrhclnconrc'I;rx()rdirrarrcc(l'11.))1984.

'l'hc cstim;rtion of curlcttt tax provision involvcs making jutlgmcrrrs rcgitrdirrq atlmissil>ilitr'oiccrrain c\r)(:nscsas wcll as cstinratirrg tllc nnrornlt oiothcr c\l)errscs for rax 1:urposcs.

3.7.2 Dcfcrrcd taxI)c[crrcd ttx is rccognized in rcspcct o[ tcrnpor:t4' diffcrcnccs benvccn t[rc carn,irrg Anror.urrs oi asscrr rrrcl

lirbilitics for finltrcial rcporting l)url)oscs and thc anrounts rrscd for raxari(),1 purp()ses. l)ctcrred rrlx is r)or

r'ccourliTc(l tirr thc firllr,rvirrg rcfirp()11ry drffcrc,rccs:

rernl)orarv tliitcrenccs ou tlrc inirial rcco1,r1l1l1,,1 ofnsscrs <:r liabiLrics in ;l rrarlsa(.ri()r) rlrar is nor rr burincsscombirrarion irucl tirar.rf'fccts ncither accountrng rror tlxallle protir or loss;

rernPorar) difierenccs rclrrctl ro in\rcstrrcr'rts irr sul>sicliarics to rhc cxlcnt tlrrr ir is probablc rlrar rhcv u,illnot rcvcrse in thc f<lr:csccal>lc 6lturc; and

temporary difFercnces arisirrg on thc iliri.,rl recognrrion oIgor>drvill.

3.3

3.4

,;tkl/:g ,

\"/,---,, ,4t... t----:'::

[)ctcrrctl tlx is nrc:tsurcd at thc rilx r:ltcs r]):tt art especrctl ro bc ir1>plicrl ro thc tcrnpr>r:rrl diitcrcrrccs u.hcrr tScvrevcrsc, l;;rscd <tr: rhe lar,''s rhat havc l:ecn crucrcd or substarrtivcll' cnactcrl by thc rcporting drte.

Dcferrcd tax asscts and liabilirics arc oifset if there is a lcgallv crrforceablc right t<> offset currcnt rax liabiliricsagairrst current tax assets, arrd thev rclatc to inconrc raxes lcvicd bv thc slnlc titx aLrrltoriry on thc sanrc taxablcentitv, or on diffcrcnt tax cntities, but rhcy inrenil to scttlc cLrrrcnt tax liabilitics ancl :rsscrs ()r) il nr'I b:rsi. ,rr r]rt:irtirx asscts and lirbilitics will bc rcalizcd simulrarrcorrsly.

;\ dcfcrrcd tax ilsscr is rccor{nizctl tirr urltrsr.ti tar k,sscs, ra< crcJirs arrd t]cductil:lc tclnl)oritrl tliifi.rcrrcc. ro rlrccxrcttt tilxr it is prt>bable that futurc r:rxablc 1:rolirs will bc ,n,ail;rbic agarnst rvhich rhcr can bc Lrriiizcrl. i)cli.rr.ctlt.rx asscts arc revics,ed at cach rcpotting dlrc and :rrc reduccd t() thc cxrcnt that it is no longcr prt>l:ablc rhar rltcrclatcd tax bcncfit rvill i:e realized.

Dc[crrcd tax relatir:g r() unrea.lizcd surplus on rcvaluation of hcld to maruriry (l{1'M) arrd hcld fr>r trade (l.ll.rQsccuritics are recognizcd directly in otllcr rcseft'c as a parr ofe.luirv and is subscquerlrlv rccoljnizcd iu profit :rncl

]oss itccr>unt orr maturiry or dispos:rl t>f the sccurin'.

3,7.3 Tax exposuresIr: dctcflIining tltc atrtour:r 0t currcnt and dcfcr|ctl txN, thc lla!rk takcs iilto accoril)r tlrc irnplrcr oI urrccrrarrt rirx

P()siri(,ns ancl whcthcl aclditional taxcs and interes-t may bc dr.rc.'j'his asscssrrrcrtr rclics ()n cstilrrres rtndassurnPri()ns and rnav involvc a serics of ludg'ments about futurc evcnts. Ncw irrtirrmatirlrr nrav bccorncxveil;lblc that causos thc Rlnk to changc its judgmcnt rcgarding thc adequlcv oI existing rax lirl>ilitrcs; strch

ch:rngcs to tax liabilitics rvill inrpact tax expcnsc in thc 1>eriod thrt suclr a dcrcrnrinatiorr is nmdc.

3.8 Cash and cash equivalents(.ash lnd cash ctluivalcrtts includc rtotcs arttl coins on hand, urrrcstricrcrl ballr:ccs lrclcl uirlr liarrgl.ri[sir llrrrlitnd its agcrrt b:tnk, bal:urcc sirh othcr banl<s :tnd finarrcial irrstitutiorrs, rll()rrc\'ar crrll itrrcl <llr shorr lrc,licr..

ittvcstnrcrrt in trc;tsun' bills, Borrr>rving trt>m othcr banks, Btngladcsh Bank bill and pr:izc bonrl.

3.9 Investnrcnts.\ll invcstmcnr sccuritics arc initiallv rccognizcd rt cost. including acquisirir>n chargcs ussocirrrcd rvitir rlre

irrvestrncrrt. Prerrriums are amortizcd and discourrts arc accrcditcd.

IIeld to l\Iaturity]nvestolcrlts rvhiclr havc,'tlxcd or dcrerorirtal>lc'lla!'nrcnts' arrd:rr'c intcrrrlctl t0 bc hcltl t() ln:lntrit!,arc,:l:rssiicrlas 'Flclcl ro Nlaturiry'.

FIeld for TradingIt:vestntcnt classificd in this catcgrrv are acquircd principilll, for the purpose ofsclling or rc1>rrrclrasiug in sh<.rrr

tradiu{: or if designatcd xs sucll bv rlrc minigcmcnr.

Rcvtluation.'\s per the [)C)S (]irctrhr lcttcr r:o. 5, darcrl Nlar,36,2008, I-ll"f sccurirics arc tcvaluair'd cacir wr:cli t,sirrg\l:rrliin11 to i\larl<ct cotlcopr arrll [-['l NI scctrrirics arc anlortiz,jd ()ncc A lcirr ,rccortlinrl ro l]arrglrdcslr Il;rrrliguidclirres.

Yaluc oIirl,csrments has bccrr shou'n as undcr:

(ittvcrttrncnt'l reestrry Bills and lbuds (l-iFl) ..\t prescrrt valuc (using malking to nrarkct corrccpr)Govcrtrnrcnt'l reasury Bills and iiouds (l-l'flt{) .t\t present valuc (using arnortizarion conccpr)Baugl:rdesh l);rnk BiUs (-lF1) At prescnt vnlue (using rnarhing ro nrarkcr conccpr)Prizc B<lnd .\t costSerrior securcd borrd .,\t cosr lcss redcmptiorr

l)crails ;rrc slrowrr in Norc- 7

\-rY.tll

3.10 Lo:rns, Advanccs/Irtr.cstnrents itrld provisiorts

a) l.,o:urs :rr:d .rcjvartccs of co:t\cr'lri()nal Ilartliingr/lrtvcstn)ellis

iJalarrcc Shcct orr gross vrluc.

b) l)ror.ision for kr'rns alrd rdvances is nradc on tl)e b.lsis ofinstructions containcd irl Bangledesh llank BIIPD circular

No. i9 (Dcccmber 21 ,2012) aod BRP[) circular No. 05

di[tcrcnt classiticltrrlrt. nrc given bclou:

P a rti ctr lars

Gcncral provision on

oi Islanric Ilanking br,rnchcs arc sriucrl in tlrc

periodical rcticrv lrv thc rnanagcnrctrt ar)d oiNo.14 (Scptcmbct 23,2012), Blil)l) circular

(29 r'[av 201 3). 'Ihc ratcs oi provisi<>n for

,\ll unclassified loarts ancl advanccs/invcsrlncrlti cxcept tb[Jowing:

Srnell and medium cntcrprise financing

Consumcr fina,rcing

[-lousing t-urance and lt:ans f<lr professiorrals to set ul) btrsincss

undcr consun:er itrtarrcing sclrcmc

[.oan to I]l'ls/NlBsi SDs aitrinsr shxrcs

LJ ncl,tssi ticLl aqricultut,tl lo.trts

>1:cciai rncrttir,rl ilcc()(rrrl (othcr tirati Sl\{i'l lr>;rl:l

Spccial rncntiort acc()ur)t (ibr S\tli lo:uI)

Spccific provision orr

Substandard lolns and advances/tnvestrncnts

L)o ubtful loans arrd ad va r tces / irtvcs trnctrts

Bad/loss lr>lus and advitrtccs/ir:vcsrmerlts

C) ,\rnounrs rccciv:rl>le ,>n crcdir cards :rrc includcd itl advartccs to ctlstolT)cls ilt

rcc,>vc rccl.

L)crails :rrc showrr in Norc 8.

Ra tc

'tl'o

0.230,'o

50,/o

2u,,o

LO

5u ;,

<,. -

n aiol .

20o/o

50'/o

1 000,6

rhc.rrnoLrrrrs expcctc,J to l:c

3.11 Fixed asscts and depreciation

3.11.1 Recognition and mcastlrcnlt:ntItcrns of lixcd asscts are measurcd at cost lcss accunrul.rtcd deprccittion itrtcl accunrularcd irnlrairtnertt losst's'

(.6sr includcs ex1:cpdltuL'c th.rr rre dirccrlv artni)urel)ld r() tl)c ilcqtiisiti(tn clfasscl;rr:'i btirrtirrg rt, ihc l"t:arit'tt

n6cl c,rnclition ncccssarV for ir to bc cap:Lblc r,It,1;elatillg irr tltc illterltlctl filerlltcr'

\\5crr parts oilq ircm g[ fixcd isset ltirve rliifcrcnt uscful livcs, thc, irte:tccoutrtcd tirr its separarc itcnrs (rrralrlt

compr:rrcrtts) of tlxccl asse ts.

'll"rc gairr or ftlss on <Jispr>sal oIln itcm of fixcd assct is deternri:red by cornparing tlrc ptocecds trorl clisposal

"vith ihc ctrq,ing irlounr of tlrc ircrn oi fi-rctl lsser, rnd is rccoqrtizecl itt othcr inconlc/orhcr c\l)cllscs i:l prrrtit

or loss.

3.11.2 Strbscqttcnt c()sts'l'hc cosr r,f rcpllcirtg il c()mp()rlc,tr oi ao itc,n oi fixcd asscts is rccogrtizcd irr tlrc carrvirlg iltllottllt ol tllc itcltt il-

ir is probable thtr thc fururc ccouornic bcnctits cmboclicd within tlrc ptrt rvill fl<trv to tlic Il.'trrli ltrrd its cosr catt

bc nrcasurcd rclilblv. 'fhc carrving amourrr oi rhc rcplaccd part is dcrccogrrizcd. '['ltc costs rli rlrt tlrry-trl-tlitv

ser:vicing of Ftxcd asscts are tccog-rrizcd in proEt or loss as incurrcd

. HYC

3,11.3 DeprcciationDcprcciation is rccognizr:d in profit or loss on e straight-line basis ovcr thc csrir:rarecl trsclul [vcs oI cach purr ,>r'

an itcn: of fixed asscts sincc this most closcly rctlects thc cxpcctcd patrern r>f constrnrptir>r: ol tlre trrttrrceconomic beltefits enrbodied in thc asset. L)cllrecarion o:: additir>ns is chargcd from rhe clarc on whclr rlrcilsscts Ar( avatlablc frlr trsc and ccilscs ()rl tlrc datc rxt which thev erc disposcd otl r\sscr circlio$ -wiscdt'prcciati0n ratcr- li)r rhc crrrrcrrr artcl c()lnp:'lrtriVc \.cilrs arc as tr>uou,s:

Catcgpr} of r\sscts

Iirrrniturc, fi-xturc and finingsl-caschold improvcmentOffice equipments

Sta[f ecluiprrcnrs

Orxuputcr and rclarcd er;uiprncrrrs

\[otor vclriclcs

Rlte of dcnrcciation

100,i

2Ao/o

20Yo

200/o

25o/o

259/o

L)cprtcttttr>rt lncrlt()ds. lr-s,:ir,rl IvLs,rntl rcsi.itr;rl ralucs lre rt,rsscssc<.1 ar crch rcp,rrrirrl5 d.rrr: ;rncl adlrrirccl. rIappnrJ:r'iltrc.

3.12 Intangiblc assets - SoftwarcSoftware acquired by the tsank is statcd at cost lcss accumulatcd amortizari()11 and accumulatcd inrp:rilrncnrI oss es.

Subseiltrcnt cxpendittrre or'r softwalc asscts is c;rpiurlized r>nl1'whcn it incrcascs thc frrtur'c oc()r'lol]lic llcrrcfitscnibrldicd irr thc spccific l.scr ro r,r.hiclr it rclatci. i\ll orlrcr cxllcrr<lirurc is cxllcrrsctl as irrcrrr.rt'rl.

,'\lnolrizlriort is recogrtizctl in Irot-rt ()r l()ss ()rl a strirrghr-linc lrlsis ovt:r thc csrinrarcrl Lrsc[ul lili r,i rltc ioirt,lrc,.fhrm tltc d',rtc tlxrt it is availeblc it,r trsc sirrcc tltrs rntlst closcll rctlccrs thc cxpccrcrl l)Jncrn ()i cr>nsurrptiorr oi'thc furure ccottotttic bcr:cfits cntboijicd in thc assct. In casc oi acquisirir:r: oi sofrrvare, amorrizari()n is ch.;rrgctl

from the mouth of acquisition, ',,u'hcrcas tnlortization on disposed off softrvlrc is chargcd up ro rltc nr,rrrrlrprior to the disposal. 'l'hc cstirnatcd uscful lifc of sofrwarc is fivc ycars as srrch anrortizarion is chargcrl ar rhc

.!alc <>f 20ot'o Pcr annum.

r\mortizariort methods, useflul lrvcs arrd rcsidual v:rhres arc rbviet,cd at cach [jnancial tcar-cnd arrcl arliLrsrccl iIa pprol:r'ir rc.

3.1.3 I)cposirs ancl othcr accountsI )!:l)()iits ,trtd rirhcr iccour)ts irlcluJ': rtr:n intcrcst-l;clriug crrrrcrrr dc1:osit rcrlccnr.rblc al cirll, intcrcst l>carirrg orr

dcnrlrttl ar)d sh()rt-tcr'rn tlcposirs. s'lvinus tlcposir und tixcd dc1:osir. 'l'hcsc ircrrrs arc broughr ro finarrcirlstilrerltcr)ts xt thc l+-oss valuc ot thc outsranding lrahncc. Dctails are sh<;wn in l-orc I2.

3.14 Othcr liabiliticsOrhcr liabilitics cornprisc itcms such as prr>r'ision for lorns arrd advrrnccs/invcsrrlrcrrrs, provisirln tirr'rirx:rrion,inrcrcst payablc, profit pavablc, intcrcst suspcr'rsc, I)rofit sLrspcnsc, accrurd c\pcnscs. Orircr liabilirrcs:rrcrccogrtizc<l in thc balitrrce shcct irccording ro thc guidclirrcs oi Banghdesh [].uil(, Irtc(xllc'lux ()rtlrn;rrrt:c l9tJ.]:rnJ inrcnral polic; r,f r)ru li:tnk i)e tlls :rrc sllorvn in Notc i 3.

1.15 flcad officc fund'['his rcl'rrcsents ilrnoLlrlts dcposircd rvith Banglirdcslr []aul< in [oreign currcncv as x ])rrrr r>f nrininrur:r c:rpiralrcquircnlcnts.

Acc<>rding to subi-cction 3 of Sccrk>n 13 of thc []ank Companics Acr. 1991 as amcrrtlc<l bv Bltl,l) (lilcular rro.11 dlrc<l 1'1 Aueust 2008 and lllil)D CirculaL no. 18 dltcd [)cccrnbcr 21,2011. all barrlis irrc rcquir'ctl ro dr.1:6s'ru'ith lJarrgledcsh []:rnl< thc highcr o['l'li, 4,00C nriilir,n and rrini,nrun capiral rcqrrircnlcor cillcrrl:rrc(l l: l(iolo r'rirr5k rvcirlhtcd asscts.

l)crails ar'c shou,n in Nr>tc 14.

VtY C-ti

3.16 Contingcrrtliabilitiesr\ contingcnt tiability is -

;\ possiblc oblig:rtbIr rhat ariscs form ptsr cvcnts and thc existcr:cc oI rvhrch rvill hc coni-rrnrr:t.] orrlv br rlrcoccurrcttcc or norl-occurrcrtce of orrc or rn()rc ur'lccrtain funrrc evt,rrrs not wlt(,llv rvitltin tlrc corrrr,,l c,i-rhcl3anl<; or

-\ prcscr:t obligation rlrat ariscs tionr pasr cvcnrs brrt is nr,t rccr:r;rrizeti l>ccatrsc:

- it is not 1:robablc tltat an ouri-lorv of rcsourccs cmbodving ccr>nomic berrcflrs u,iI bc rcqLrired r() scrtlc rhcobligatior:; or

- thc aorount of thc obligation cannot be mcasLrrcd with suft'icicnt rcliabilitv.

Conrirtgent liabilitics arc not recognizcd but disclosecl in thc tlnarrciai srrrerncnrs urrlcss rhc pr>ssibilrrl ot:rrrr>trtflow of rcsr>urccs crnl>odvirrg ecrrromic bcnc6ts is rcliably cstrnrilrcd.

(.r,rttirrqcrtr asscrs Are n()t rcc()lIIiTcJ rn thc inrnci.rl stttcrncr)rs as rhrs nt,tY rcsults irr ilrc rccorlniriorl (): irrc()r1l!

rvlrich rrrrrv ncvcr bc rcrtlizccl.

3.17 Intercst paid on borrowing and other deposits (Couvcntional banking)Iilrerest paid and othe( cxpcnscs are rccogr.rizcd on accrual basis.

3.18 Profit shared on dcposits (Islanric Banking)Profit shated to tnudar;tba depr>sits is rccogrrizcti on ilccruxl brsis as pcr;:rovisirlr:tl larc.

3.19 Ernploye e bcnefits

3,19.1 Providcnt FundIiach cligiblc emplovce contril:utcd @ l0% of thc basic sxlar) to thc l)rovidcnt liuud .\cc<;urrr whrlc rlrc Il;rnk

contribtrtcd an eclual amoullt, which is kept in a savings/rernr dcpr>sit accorrrr.'l'he furrd is resistcrccl rvirlr

NetiorraI Board of llevcnue.

3,19.2 Grattriry Fund'i'hc llarrk opc(trcs ln rPpr,l erl firrdctl er'iruin' sclrcnrc c,rvcrilrg clitjblc cnrl,lol ccs rvhr>sr

1:e ri<,rl oicnrplt,l,rncrtt rvirh rhc ll:rnk is fir'c vcars olr){)rc. (lranritt, rs l)afal)lc ro stafi,rn c()nll)lcrtor't oI rhc llrcs<:ril>ecltliralif'.'irtg pcrirld of scrvicc unJur thc scllcrlrc.'l hc Ilartl<s Iiirbilrrt on rhis accourrr srarl(is lrs on.Jlsr l)cccntltcr2015 s'.rs tllll, pr<>viclcd irr accourtts consitlcnrrq rhc srlfis ,tccurnul:rtcd grarurtv crrtrrlcrr.rcnts [rrr rlrcir st n icc

u,irh thc bank.'l'hc Gratuitl l:und had bcerr appr'ovecl bv thc National I]oard oillcvcnuc in l]cbr:r.ran'2(lll.

3.19.3 Short-tcrm enrploycc bcrrefi ts

Shott-tcnu cmplovce bencfit oblig.rtions arc rncasurcd orr an trudiscorrntcd l:asis anci ar'c cxpcnsctl ils tlre r(.lrrc(lsctvicc is providccl. A Iiabitirl is rcc,rgnizcd tirr thc arnount cx1>ccrcd ro [:c paid urrrlcr slrorr-rc:rn cxs]r l)(,nus orprt>tir-sltlrirrg plarrs ii rlrc Flanl< ltrs ,r prcscrrr lclpl c,t c<lrtsrr-ucrivc r:l;ligariorr l(l I)i1y rhis unrourrr ai :r rt.strlr r.ll'

past scrvicc providcd by rlrc crrl:L,1cc and tlrc olrliLlrtion ciur bc estimarcrl relralrh.

3.20 Pror.isions and accnred expenscs

L: cornplirncc wirh Il.,\S-37, provisions and .rccrued cxpenscs arc rcc<lguizccl in thc t-rnancial strrcr'ncrrrs wl]cntlrc ilanli has a lcgal or c()nstructir/c obliglrion as I rcsult of |n51 cvcnr, it is Jrrolral>lc rhirt arr orrrflorr, oicconomic bcrtcfir will bc rcquircd to scttlc rhe ol>lrgation and e rcliablc cstirn:rrc cln l>c nuxlc oi rhc lr.rrorrrtr ot'thc ol:ligatxrn.

3.21 Provision for Off-Balance Sheer IixposurcsIrt crlrrltliartcc rvith Hanglrrdcsir Bank guitlelines ()i[-Bilirncc Shcct itcrrrs.rrc tlisclr,sccl rrrrdcr conrirrgcrrrliabilitics. ;\s pcr Illll'}l) circuler No.14 (23 Seprcr:rbcr' 2012) rctluircs ',1 l{cnerrl provisiorr [rrr ofi lnl.rrrcc slrccrcxp()surcs r<l be calculatcd ar I 70 on all off- brtlancc shcct cxposurcs.I)ctaiis ;rrc showrr in nore 13.2.

H-/L

3.23

3.22 Provision for Nostro AccountsPr<:r,isions tor urrscttlcd trirnsactiorrs ()r) nostr() accoulrts rrr:rdc arc revicwcd senri-lrrnurllr. llv rrrrrrarlcrrrcrt arrtl

certitlccl bv our cxrcrrtai audirors irt :rccorcl:lncc rr,ith Banqladcsh l)ank I;orcigrr llxcir,rnuc l)olicv l)cir:rrrrncrrt

0:[':1'}l)) circular Nr>. 677 (13 S(rl)t(nrl>cr 20r)5).

Impairnrcnt of non-fi nancial asscts

1'hc carrying amounts oi the Bank's non-financial assets, otllcr than dcfcrrcd tax :1sscts, arc rcvicrvccl :rr eaclr

rcl)orting date to dctcrminc u'hctlrcr rherc is any indicarion of impairnrcnt. If any such inclicrrtron cxisrs, thcrrthc asscr's rccovcrablc amount is cstinrated. ,'\rt impairnrcnr loss is recogr:izcd ri thc c:rrrvirrg aul()urlr ()[:ln ;riscror its C:rsl-r (')cncrating Unrt (CGU) excccds its cstirnatcd rccovcrablc arnount.

'l'lte rrcovcrlllle.tLnourlr c,Itn assct or C(iU ir th( ]lrcirrcr oIits vrluc in trsc irnd irs lrrir'r,.rluc lcss ct,srs r,r scll

Ir: asscssing value tn r.rsc, tllc csrilnirtcd futute c;rsh ilorvs arc discountcJ t() ihcir l)r(scllt v:rluc usirr.q,r i).(:-r;l\discorrrtt ratc that rcflccts currcllt nl:rrket xsscssrncnrs oIthc lir]rc valuc 0foronL:y arrd thc rislis sl)(cltlc t(, rll(,assct or (iCU.

h-or thc purposc of impair'ment rcst.ing, assels that cannot bc tcstcd indiviclurally arc ;xou1.lcd tollcrhcr inro rhc

snrallcsr group of tsscrs that gcncratcs cash inflorvs from continuir:g Llsc thar erc largclv itrdepcrrdcnr of thc caslr

inllows of othcr:rssers or (:GU.

Irlpairnrerrt losscs arc rccognizcd irr profit rir loss. Inrl>rirrrrcrrt losscs rccognizcrl irr rcsp:ccr of (.CL.s:rrcellt>carctl firsr to rcrlucc tlrc carrlilg,tmotrni oi;rrrv gootlwill irlkrcltcd ro tlrc (.(l tl (ilrouyr 11[1'1 lt's) .rrrd rlrcrr

to rcducc rhc carq'ing antount r>i thc otltcr' ;tsscts irt thc (-GU (rrroup oi ()O LIs) orr a ILrr r'rrir bilsis.

Impirirnrent losscs recognizcd in 1>rior pcriods arc asscsscd ar ench rcporting darc tirr arry irrdicatiorrs tlr:rr tlrcloss has decreascd or no lon{Irr exists. .{n impailnent loss is reverscd i[ thcrc lr:rs bccn a charrgc irr rhcesrimatcs uscd to detcrminc the rccoverablc amount. An impairnrcnt loss is rcvcrscd <>nlf to thc cxtcnr rh;rr rhcasscr's carrving Amouut does nor cxcecd the carrying arnoLrnt th:rt rvould hrvc [>ccn clcrcrnrirrcd, net oi'dcprccirttir>n ()r amortizati()n, iI rro inrpairnrcr:t loss hacl been rccogrrized.

.].24 Rcconciliation of intcr-bank/intcr-branclr accountti,t>lis oI accounts with rc6artl ro :nrcr-bartli (in []anglatlcslr urrcl oLitsiJe ]lurrirl:lduslr) arc rcc()rl(:iled rugulrrh'lrnd tlreL'c arc no nratcrial diifcrcnccs rvlrich nray aftecr rhc t'irra:rciaI statcr]lcr)ts sigrritic,rrrtlv.

U:r-recr>nciled entries in casc oIinrer-branclr rrarrsactious as at thc rcportiug (latc xrc rx)t matcrial.

3.25 Corc Risk Managenrcnt,\ccording to llllPl) (lilculer Nr:. 17 fl ()ctobcr:2003) and llliPl) (lirctrlar No.a (5 ir{arch 2007) brrnlis rctlrrircro l)Lrt in yrlacc an cffccrivc risk nrlrtagcmcnt slstcli). B.rngltdcslr l'ianl< rnonirrirs tlrc 1:rourcss ofirnplcrrrcrrrarirrrrr:f rlrcsr' lluidclirrcs tlrrorrtllr irs ()n-iiIc irrspecriori rclnrs rlrrr)uql1 rourirrr inspccti<,rr 'l he risl< rrr:rrr:rrltrncrrr

svstcrr)s of tlrc l:'lrrl. ar c rli.t ui.c.l :::ir,u:

Risk rnanagemcntBanl< has in placc an approt'ed inrcgxatecl Risk itfanaqcmcr:t frarnew()rk for mana.qing (.rcdit Risl<, i\hLkct liisk,Liquidity llisk, and Opcrational Ilisl< as cvidcnced by its Br>ard:rpprovcd "l{ish Managcmcrrr [)olicy" antl"trlarket & l,iquidiry llisk trIanagcmcrrt Policy". As pcr policy, reporting linc of the risl< nrarragcmcnr funcrionhas bcen l<e1>t complctcly indcpcndcnt of the br.rsirress dir.isions.

Follorvirtrl is thc ttlvclrtlncc str'Lrcrur( and ir-n1:ortarrr pr>licics rlrr llisk \lanagcrrrcnt of rhc Bank:

' llrc llo;tril ot [)iI(ct()r: thrr,uillr it{ irri)-c,)o]r}ritrcc cill(:(l lJr,arcl lii:]i \l;rr'r:t1;er:rcr':r (.,rr;tntitttt:.llli).1(.)'o\ ( r'scas ovcr,iU risli oi rlre fJ.r:r!i.

' ll\'lI) is thc orgrrrizationll alrn 1>crtorrnin,g thc funcriorrs of idenliti'ing, mcasllring, uronirr>rirrg arrtlcontrollirlg the various risks and assisrs thc r\pcx lcvcl cornmirtce iLnd thc various sub-conrnrittccs inconvcrsion of policics inro action.

\-\YC-

.\s part of its nrarldate, thc (,cnral Nlanagcrrcut Comrnirtec (CNIC) is enrnrsrccl rvitlr ovcrs.cip.q 15cop<'rati<>nal risk of rhe barrli.

lJrrrl< has an csr:rblishctl llisli tr[anagcrncnr I)ivision (lit,ll)) f<rr I].rrul.rilcslr ()pcr.:rti6rrs irr iirrt.*,irli rlrt.sirr:ilar scr up ot l{\tt) in I Icld Of trcc. lr icp()rrs r() rhe (-hici iiisli ()f t'lccrl(.rcclir I Icrrrl rr.irlr dr,rrc:rlrcl)()rring to IU\ll) at I'lci(i ( )rtlcc. .-\s 1:arr oI lii\[l), l rcasun. \lidcllc ( lfllcc i'l'\l( )) n.r()r]it( )rs rl,rr-r,r-tlrwtradingactivities of thc dcalirrl; room.'l'NI() focuscs orr Nlarl<ct lUsli in rhc l)()rraoli() whcrc IlNlt) rrr llcrrlOttlcc has becn lctivcly elrgaged irr off-sire rcvicw oi thc'fNIO tor 13arrglarlesh ()l.rcrlrions and 51s l;ccrrcxtcrldirrg full support ir: addrcssirtg risk rcl:rtcd issucs. IIIS has becn dcvclopccl tirr aiJdrcssinlq \larlcrItisk irlanagemcnr, Crcdir l{isk \fanagcnrcnt, and Opcrari<>rral Iiisk lv{anirgenrent, rvhilc as per rc.jrircrn.nrsriptrlarcd in guidclincs, rreilsun deils, cour)tcr?arrv risl< Iirnirs crc. are pr.,vidcd 19 R,\tl) g5 a tlailv Ilasis.

.\rr indcpcndcnt risk revicw fttncti,:rt crists rvithirr the l),rnk irr rlrc [orrn ()i Irir(jr.nirl r\trclir ()ror.rp. rvlrrclrrcports ditecrlv ro thc l}>,rr.d ;\udir Corrrnrittcc..\tier conducting thc quar)rititi,,,c turp',rct studics, I);rrrk has pursucd thc ir:rplcrncrrrariori r,I l]uscl III rrrrrlcrthc pun'iew t;f Cenrrtl Banl< guidclirrcs ar:d has complicd rvith thc capital aclcc;u:rcy rcquirerncrr urrdcrPill:r-l of Basel Ill accord. lvlorcovcr, in light of Banglaclcsl: lJtnk (]ircr-rlars an<l (]uidclirrcs, licluirlirlstandards undcr llascl III have also becn im1>lcnrentcd.'l'hc liank hls bccrr pursuing -srand,rrdizcil.\pproach (Sr\) for calctrlating (lredit & it{arkct fusk and llasic Indicaror.,\p1:roach (l}lr\) to dctcrrnirrcOpcratitlnal llisl<. Hoivevcr, brtnli hrs r plan to shi[t [r<>nr l]1,,\ ro "l'hc Srarrclrrrtlizecl ,,\pproach (lS.-\),rvirh prior allproval trom thc (.enrral llanl< ro clef-uie caJrirll cherge i<rr oper:trkrnal risk l.rv,nappi,re rtsbtrsiness lines.

l{}'lLl prcl:lrrcs a Risl< \liinliicnteur l):rper lll\fi); cvcrv rnorrrir :rs p.rrr oi reriLrl.rrr)r\' r.c(luu.cnt(.rlr, ivhich rs

also discusscd bv'l{isk Nlarngcnrcnt Cornrnittce (li\l{))'on nrorrthlv basis. li},Ii)s arc l)rup:lrcJ,rirerrccciving dara/in[onnation liorn vari<.rus units, rvhich arc then cornpilerl/rcfirrct] rvirh raliiug carc oi its

'alidation & accuracy rhrough cross marching of dara wirh thc srarcmcrrr oi afthirs.

' Srress 'l'cst cxcrcisc is bting cortductt'd bl lii\ll) covcrirrg all corc rrsl< arces irr orclcr rr> 1i:rrrgt: slrr,cli:rl>st,r[:iIrg captcitv ttt-thc b;rr:k. Slt<rcks:rrc:rp1:lied ar nrint,r, rrrodcratc ar:rl nxrjr>r.lcvcls rrs to ltscl;rt:rirr rl)ar' rvltcrhcr brrrli cottltl strs::trn unticr llrc:t thrcu srrcss sitt,:rriorrs <>r rrot.

3.25.1 Crcdit risl<(lredit l{isk is most simply de[-ured as thc pt>tcntial loss rvhich may arisc ry]ren a banl<'s borLorvcr ()r c()unrcr

Parr,v fails to mcct its obligarions irr accordance rvith agreed tenns. Bank r\lfalah Lirnirecl hirs stanclards, pc,licicsand proccdtrres dcdicated to controlling aod monitoring risk from all such activiries. 'l'he go:rl oI credir rislirnxn:rl{cmcnt is to rnaxinrizc the benk's risk-edlusted rate oI rcturn by rnaintainiug crcdir risk cxposurc tvitltirrilcccPlal)le parnrllficrs.'l-hc st;urclerdizcd ap1>r'oaclr is applied [c-rr ris]i ivcii:irtcd cxpt'rstrrc as pcr clirccrivc oFl3arrgludcsh l):rnk.

(.Lcdir liisli \[arllgcmcnl Proccss c!)cor])pass itlcnritic:rrirrn,;rsscssrncrrr, nlrlirircrn( nr, nronirrrrirr.q:rurl co:rt16ltlfthc crcdit cxPosurcs. lirotn llartl<'s lcrsl)ccriVc. a kcv rir ci'[ecrivc crcJir risii rltarlirgcr)]crrr rs rr rvr:ll rlrrruuhrotrt bttsirtcss stratcgy. []anl<'s fircus ovcr rllc conriug yclrs rvill bc to [urtircr errlnncc ris]< rnc,clcls, grroctsscs irrrrlsystcnr inlrastructure, in Iinc rvith its :rmbitions to bring rnaxinrunr sophisticaturrr to risl( nran.lecnlcur rirlcri()1.

'l'hc llanl<, in linc rvith Bangl;rdesh llanl< Guidc[nes, hrd migrared ro Biscl ll frrrncrv<>rli in 20r)9 rvith rlrcsrilrrtlrrtlizcd apprt>lch, rvhilc implcrnentation ()f llascl III has also bccn l<ickcd o[i frr>m Januan 2i)'l 5. 'l [cbank lras dcsiorcd Crcdir liisk i\[:rnallcrnerrr :lcrivirics by addrcssirru rnaior risk arcas. (-rcdir l{isk is 6rrc 6f rlrc:Itt.tior risl<s, rvlticlt cart bc assurnctl as I)orcrrtiill it:ss arisirrg [r,rnl thc tailurc oI ir cour.rt(]: l)ilrtv r() pcrlirrrrrcoutr'ltcru;rl rcsponsibilitl'. 'l hc lrrr,cc.sc* lrlr e l;cr1 sct ii)r t'irlc-tuni14; 6[ slstcnrs & pr6ccclrrrcs. lntiryrnltir,rr'l'ccltrroloty capabilitics, alrtl l{isk (iovernilrtcc Strt'cturc to rnccr rhc rcrluircrncrrrs oi rlrr ,\clr..rrrccrl ;\1;Pro:rclrcsas wcll.

'l'he Crcdit Risk llanagernent cornprises of thc Crcdir l{isl< Dcparrrncnr ther looks aflrcr l[l thc as1;ccrs r>[crcclirrisl< urd conducts Port[olio anrJl'sis r>n a rcgtrlar basis. Board llisk Manrrgcrnerrr Committcc ensurcs the lloirr(llcvel t:vcrsight of risks ernbcclcicd in Banl<'s opcr^rriorrs. Bcsidcs assisting thc Board r>il)irccrors in dcrcrminirrilrhc strarcgic direcrion of rltc Il,rn!< bv provirJrrrg thcnr rhc risli pcrsl>cr;rivc, ir crrstrrcs irrrplcmtrrrarir,rr <,1'r5ccrcdit risk 1>r>licv/strarcgr,T' crcilit Irl:rrr al>Pr<,vcrl bv rhc lJoard nr)cl t() rn()rliror crcdit risli r>n I banli-u,irlc ll..rsislod crrsLrrc cornpliancc rvirh l:rrrrrs :rp1.lror.cri bv rirt l;,rrrl<.

vl'f e-

[-[ca]rlu assct portfolio lras bccn build up irr rcrnrs ofcrcclir cr';rlu:rtiort svstcrn c()rnl)rises oirvcil-rlcsigncrl crcclirxpprxis:tl, rnrtintrining lssct qullitr', rssessirtg risl< in lcnrlir:g ro x I)a:ticular cusr()nr(r, s:rr:tri,rrirrg ar;tl re;iuu

1:rr>ccdrrrcstirrthcpurl:oscsot'cnrphrsizingpruricrrceinlenrtirrgactiviricsarrtlcnsuritrqrhchighrlu;rlin,,fitsscrl)()rtti,li(). lir>r this puqx)sc tw() scparatc trrrits lttvc bcen ton:trJ rvirhin rhe clcdit division tlresc arc l) OrcclirIUsl< Unit 2) l{isk \lanlgcmcr}t Unir. Crcdit lijsk Ljnit is entnrircd wirh rhc actil,itics mcrrtioncd abovc ulrcrcirsliisk N{eua.gcmcrrt Uhit asscsscs.,/evalilatcs thc i\[arl(ct lnd O1>erariorrrl ris]<s Lrndcr Bascl Ill accord. Ilrc ll,urlior:Ini[gcs its por-tfoli<> o[ lorn assets wirh a vicrv to limit cot]ccntratiorls in tcrnrs of nsk queliry. gcorytfh!.industry, maturiry and largc cxl)osurc. Intcrnal rating bascd portfolio analvsis is llso concluctcd frcqucnrlr,.

.\ sophisticated Inrcrr:al Credir liaring Stsrcur hrrs l>een clcvck>pcd bv rhc B.rrrk; shiclr is c'lpablc ot (lLr.rrrrif\'rnl{

countcr-l)xrr\,& tllrts:tctirlrt:tl lisl< in arcc()rd:u)cc rvirh best 1lr'acticcs.'lhc svstcrrr r.rkcs irrto c()nsr(lcrati(),'l

qLlalitiltivc ^nd

(luantitativc ractors oI tltc c<rrtntcr pr.rrq, transacri()n stnrcrrrre & sccrrrin arrd gcntr;rrcs arr

intcrnrl rating vis-ir-vis anricip:tted cLlstonlcr bchavior. 'l hc svstcrtt is corttinuousiy rcvicrvcd filr l>cst rcsults irr

Iioe *'ith thc Ocnttal Barik's guidclincs fi>r Inrcrnrl Credit l{ating. lUorcovcr, rhc svsrcrrr is lxclictl l:r sccurt:ci

databasc with backup supl)ort and is capai:lc tor gcncrating Ir[1S rcp<-rlts provi(lir1] snapshor oi rirr. crrriru

portfolio for stratcgizing and dccisiou nraking. Thc sysrcm is statistically tested und vrlidrred for conrpliarrcr,.

:\ ccntralizcd (lLedit r\clmini;trltion f)ir.ision rs rvorl<ing to\',/ilrds cnsuring tlrar tcnns of ulrprovel {)l'crcditsilllcriolrs and rcgtrlarorv sril.ltrhtior:s:rre cornpliud, a,ll docurncntariorr incluclirrl; sccrrritv tlocunrcnriltion is

rcrlular & fulll cuforcclble aud lll disburscrnerrts oi rrppr,rvcrl ficilirics .rrc rnrtdc oirlr ;rfrcr n(cuss,lrr

iruthorization bv C.\D.

Proacrivc crcdit risk nrinagcnrclrt practiccs in, rhc tbrnr of intcg,rrred llauli-rvidc llisk \l:rnrrgcrncrrt arrrl inrt:rrral

Conrrol [;rarncs,orl<, adhcrcnce to lhscl III accord, consti,ttrtc thc iorportrrrt risl( o)au,rgcnlcnt rr]casur( s r]l(.bank is engagcd in for mitigating thcse exposurcs. '1'hc current focus is on ilugnrcnting thc Bank's abilitics roquantif),risli irr a consistcnt, rclilblc and valid fashion, rvhich rvill tirrthcr errsulc:xlvancccl lcvcl oIsophisticati()n irr thc (lrcdit llisl< rncasurerncnt rnd marlagcrr)cnr ilr rhc vcars ahcird.

3.25.2 Assct Liabiliry Managcnrerrtlior bertcr nlilrrirgcnrcnt oa asset and liabiliq. rhc Bauk has an cstal-:lishc:d Assct Lial:ilirv i\ [arrarloncrrr(.omnriitce (ALC:O) s,irich rnecrs :rt lcrst ()rrcc a rnontll to tliscuss tirc ovcrall strltris ()f tlrc ll.rnl<.

'l'lrc llanl< has an cstablishcd r\ssct Liabilirv ltllrral;ement Con:mirrec (AI.f)t) uhich mccts at lcirst ()nc(: a

nrrrrrh to discuss thc rlvcrall stanrs of thc llanli. .\ssct [,iabilirl' Nlarr.rgcn:crrt l)r>lict'oI l]ar:li .\li;rlah l,irrritr:tlairni to b'rlarrcc various objcctivcs lilic profitabiliq', risir, gowth in assct & liabiliry aod stebility of carnings irr a

cohctcnt nlarlncr by,h,ving d<trvrt a trtnspnr:crrt frarncrvod< for govcrnarrcc oi rhc AI-\'l functirln. Ilro,rtlh', rlrispolicy nirrrs t<> achicvc the following objcctivcs:

i [;'.rciiit:rtc 'Jsscts & lrrl>ilrtics tc-pr i,:ing dcprrrdins on urarlicr' cor:t]irions... .\iil l>aok's srtarcgic phrrning I)r'(,ccss \!hilst fircirsing on plrlir:rbilirl rrrd [iquiclrrl l.rcrrrrs.

l- \[liirrtain cliflcrent rrtios 3r]d positiorrs oI b:rhrrcc shcct u'iri:in pcrmrssiblc lirnirs.

i.., lraciLitrtc l-iquidiry i\[:ttrl.genrcrrr l>v ertsuring tltat thc demarrd tirr turrds is strpporrcil [rv caslr arrd lirlritl rrsscts

irr varrr.rus altcrnrtiuc sccnarios.

t. \[axirnizc net intelest rnrrgins enrl r:ranaec Intcrcst ]latc risli.i. Ilrrstrrc clcar itssigr:mcr'tts oi rolcs & rcsl;orrsibilitics f()r thc rnarragcrrent of various acrivirics associatcd witlrthc r\1.\'[ [unction,

'l'lrc A'l .(.C)'s priman' [t:ncrion/rcs1.lonsibilirl is to cosurc thc,\l.i\I m.rrlagerncnr irr linc wirh .\l.i\[ tlrriclclirrcsprr>vidcd by l3anuladcsh Birrtl<'r:rd tlrc llarrk's orvn Liquidin, l)r,licv (ltridclincs lirr tlrc strrtcqic rn.rn:lg(:r)rcrrt ()fassct xnd liabilitics. A)-CO rcgtrlariy rcvicws rhe banli's overrrll asscr liirbiliry position, (,vcrall ccolr()nric posirion.rhc b'.rrrk's liquidiry posiri<>n, crrpiral adcAuacv, birl.urcc sheet risk and r:ral<cs ncccssirrv clrlngcs whcrr rctlLrircd.

Bcsidcs tl'resc all rcgulrtory requircnrcnrs incltrding Cltli, SLli, RW:\ arc rcviewcd br'.\1.(.O.

,''-'-\vtlL

..\('(ai\''\

3.25.3 Forcign Exchangc Riskl:ioreilpr cxchilnqc [isli lriscs iiorn rlrr'i]ricltrrriorr in thc value 0i firr:rrrci.,l rnstrurncrrts c()ltsc(lucltt to rl)cch;lttqcs ilt tirrciqn cxcllalut{c rarcs 'lhc lirutk ntln:rges tlris risk bv sctring anLJ monitorrrrg (lcxlcr, crrrr(:1c\r il1(lcouiltcr-l)ilrr) Iirnirs ti,r orr :rnd r,ii-l:rlurrcc sirecr firtancial irtstrunrcrrrs.

()lt-lJalrrnce sltccr tinlrtcial tnstrufirellts are c()nlracts rvhich arc thc rcsultanr outcornc of thc irnPorr aild c\p()rroansacrious.'l'hc buv and selI trxnsactions xrc matchcd in view of rhcir nrartrlitics in the Jiitclcrrrpredetermincd time buckets.

'I'he currency risk is regulated and morritorcd oqaiost thc regtrlatory/starutory lirnirs cntirrccrl by rhc lJfi.'l[cforeign cxchrngc cxp()sure, i,c., ncr opcn i.l9siti9n limits,irr rcspeclvc c,lrrcr:cics:rrc rn:tnlgcd ag.rirtst rlleprcscribed limits.

.J.25.4 Internal Control & Cornpliance'ihis ilrrrtncial srarcntcl'lt is prcscrrlcd in conrpliarrcc of c[[ecrivc irlrcr]]al c()r'ltrol, c<,rporn19 .rI()\,c11;l1cc,trartsP:lrctttc\' & accountabtlirv, u'lrich has irlrogcrltcr bccon:c significanr for tltc assrulrrcc 6i tlrc intrtr,rlrper[,r,:o:atrcc of thc bank. ,'\s suclt, ct-fcctivc inrcrnal c<lntrol has bccn clccniccl is rhc fi)urxlarion of s:rfc anc]

' sound banking at Ilauk r\lhl'.rh. ln this rcgard tlre b:rnk has preparcd and irnplcrncntcd a1:propriatc cr,rrrrolstructurcs in lirrc with thc flangledcsh Bank Pnrdcntial Rcgrrlations on "lrrtclnrl Conrtol cV Cornpli:ncc".

Iittrtitcnrorc, thc prirnary'objcctivc ofir:rc:rral corrrrt,l al thc brrrrk is t<>,rr-lc;rst tn:rblc ir ro 1:criirrrn l:cr1crthrough thc cfficicrrt usc t:fresources. \\'hilc. thc inrcrnal c()ntrol svsrcnr oi rlrc brrrl< crrsurcs coorpliinc(: ill(1r'l(

rvith laid down ploccLJtrrcs that itlcnriiics rvcal<rrcsscs t() til(e al)pr()pri:rLe rnitigrtit.rr mclsures ur:l tirncl\tirshiorr.

l)rimarilv, tlrc [:;tnli hrs ld<>i:tcd lrr cilcctivc orgnnizirtiorlal structurc (r cxcrcisc ancl inrbil>c a str()ng control &comi)lixncc culrure tltrough all lcvels of r:perations by inrplernentirrg llanqladcsh Banl<'s (itridclincs. :rntl. .ts

u,cll, rhc banl<'s policics continue to strcnqrhcn inrernal conrrol dynanrically ovcr rimc. \!'hilc, rrs rnrrrrr

objcctives are listed as under:

. 'flrc 1>crformrncc of tlrst lcvcl and corrrirruorrs indepcnderrt vcrificatirrrr(s) oI corrtrol m(.asurcs scr rrr p];1s1

to nranxgc rislis:rcross thc rnultifalious lirncticlns of thc bank.

licviervs of interrml cortrrr,l stratcL,ies inclrrding thosc proccsscs irnd rcmc(iics rcconrrlrcrrtlccl l:\ cxrcrrral

auditors having becn irnplcmcnrcd.

. l(cviervs oI cxisting risk rnarragcnrent and rnitigetiorr procedLrrcs s() as t() cnsLl[c tlrc citictiveinrplcrncrrtatir>n of the inter'nal contr()l systcor as ,;t rvh()le.

. lirrsurcs full coml:liarrce of rcgularory rcquircmcnts.

. 'l'hc reportinq oImaior Iapses arrd cnsur:ing sLrbscqucllt c()ricctil'c nrcasurcs ()n a tirnell tasllit>rr.

I;t:rtltcr,norc, it is cnsurctl rltat rcqulltr and contirrrrcd ntonitorirtg hrs Irccrr c:rrrictl rlirouglr-our rlrc firr:r,:t:iil

vear [<rl qutliry issurlnce and cffcctivcness oi:rll control llolicies & proccdurcs, Jnrl lnorc-s() t() c!,,llrltr(. rl]c

rppllc:rrion oi lrttcrrul (.ontrcll & i\udir Pr,licics filr rcfurllishorcrlr irld rcvic\rs. .\rlclrriorr;rllr', Intclrr:rl (.()r)tr'ol

cnsurcs tltc \[antgcnterlt & Nlitigrtion of Iiinanci:rl ll'isk, inclurJirrg rcvicws oIcxistirtu rulcs & rcgulrrir,ns. l:orlrinten:al and cxterr)tl, arIC rl'r:li rrf othcr oblisations from (lortrrollirrg .,\Lrrlroriry: n()t lirnitcd to disclr,sulcs &

l)roccsscs irnbibing thc Irinarrci:rl Sratcmcnts of the Blnk.

.\ddiriorrallt'l)lanning, ()rganizing & Sr,rpcrvising busrircss pcr[i)nn:rrrcc rncrrics and rlrt .\uclir & lr]il)!r(rrr)n oIBr.;tnclrcs, including the rnonirorirtg of risk lrascd busincss tr:rr'lsrcrior)s Ir:rvc all l:ccrr tluh Pcrflrrncil l>r tlrcdiffcrcrrr divisiorrs of thc brrrli rn liansladcsl:

Notablc that Audir c\ lnspcction ])ivision oi thc llank's llcerl ()iticc cau'ies otrt lnrcrrral .\udirs t') crrsurc

compliencc of regulatow clirccrives as wcll as the syrrchnrniz:lti()n flnd ldhercrrcc to hid-otrr l)ohcics &Proccd rrrcs.

3.25.5 I\loncy Laundcring Risk'[ir irnplcnrcnr ]]anulidesh lJ;uk's Prudential CLridclincs for managing cr>re risks, thc l>arrl< ha"- long csrai>iishctl

tlre.\rtri i![<>nc1'l,eurtclcrirrg [)ivisiorr (,\Ifl,l)) rhrrt is ccrrrlalizcd at thc Or,trnrrl,()flficc urrL]tr tlrc lusl:icts ot'

tlrc (l \\fl.C(). ,\dditi<;rrally, thc r\i\,I1,1) is cr,nrirurorrsly mking riccossrr\: stcl)s lo rrr.rirc thc l:arrli iulh'.L.lhclcr:trlod cvcn ftrllv conrpliuur uitlr .\r:ti \[orrcv [-.aLrn.lcrin11 (,\\f).) isstrcs irrclu,ling tlre crrrrrirrrrttl (.or:rimrirru oi'l'r'rrori:t Firrlncing (t.'t l) as per lhc lcgislatir>rrs, ltuidclincs ltntl th:rt of thc corn|li:rncc oI crrculrrs rcl.rrrrrl: thc

s,ttile .

3.25.6

ln linc rvirh l\\[]., thc b:rnk cnsurcs rh,rt l>rrsincss nt [)ral!]cl]cs is conducrctl irt cottlbr'tttirv itlong rvitlr tlrc lriglr

crIicrl stanrlards cxpcctud oI rircnr :rrd tlr.rt birrtliirig l:rws tnd reqtrlatiorts ol- i(r:qulLtt,r'i \rrtltoritics rl:.tt oi rltc

( )ov,Jrrrutcnt of B:rn.qladcslt end ihrr of ,trtr r,tltcr iluth()rirf /agcnct' asstgtrctJ l;r' rltc (lcrttritl Hrtrtl< or rltt

,\[inisrrr of l-inrrrcc ()r rhat ot any xssiglcd xgcrrt, csl)cciiliv rcgrrdir:11 anti-r]tonc) huntlcrirlg;tnd thc rt'iarctl

"K69w Your Oustomcr," arc bcing strictly adhcrcd to. In this rcgrd, Branchcs do ttot tlftcr serviccs or 1:rr>r'idc

assisrancc in transactioos, *'hich irr rheir opinioos could possibly be associatcd rvith ntottcv bcing dcrit'td tionr

suspcct i.llcgal/criminrl activitics.

Espccially, thc llank has adoptcd a stringcrlt p()[icy to rnonitor and mitillrre thc risks oisusllicious accotrrlts tlrar

trc suspect of bcing uscd for mt,nc1' lrrundcrirrg.

xnd'fcrrorlst Irirrancirtll, as tttrrlet:

. lnrl>lcnrcnrlrtion oi r\\tl ,, (:'l'li, l(\'(, policrcs and rirc dcvclopmcnt t>i rclarctl soirrvarc tirr acrttu artti

rimcly transacrional nt()nitorirlg

. Arraugerncrrt of a numbcr of trainurg scssions in 2015 whercb)' rtll cntplovccs havc becn rr'.riri.cl, whilc

rucw ernployccs arc being brought/re-frcshcr into the awarcncss oI thc issucs of .r'I'[[., bcirtg rrairtcd t>rr rL

continuous basis rhroughout thc firlancill Iear.

. .\ brorrd brsccl schcdulc of brarrch insDccrion is in phcc r() ertsur'c sotrrttl l,LIsir:tss l)rxctlccs:trrtl rllc rtlarctl

crlrnpliarrcc oi;\NIi- arrrl ('.1'lr regtrl;trirlrrs ()n :l c()lltillu()ui i)tsis

Inforrnation and cornmuniciltion tcchnologl' Sccuriry Risk

]fl rcccrrt fears, various tcchnology irrnovations in areas such as cilrd Pit)'mcnt, nloi:ilc rcclrrlologt .tlttl svstcttt

virtuliizatior: havc hclped to cxpand financial instirurions' (Fls) busincss t>ffcrirrgs attd cusrt,mtr t'cach

lr:lorrnation tcchnology (11) <-rutsourcing hls also bccomc morc attractive trt FIs dtrc to thc xburl.lnncc oi

r>utsclurcir.rg serviccs. r\gainst the backdrop of 'ln incrcased rcliartce on cottl:lcx I'l' sysrcms attcl opcllrit,rts irl

t5c 6rrancial scct1;r is tfic hcigfitcncd risk 9f cybcr ettacl<s arld svstcm distuPtiorts lr: tl:is r'cgrrcl l?ls ;trc

expccrc(l to corrtirruc t<, dccl>en thcrr tcchrrologv lisl< manrtcnrcnt cepalriliries lrtcl bc tcailv to lr'rridlc l'l'

sccurin' irrcitlenrs artd s1'stcrtt f;tiiurcs.'l5c gc1,l(j't'()uidclirrc ii)r lrlrrrrter Ilarrl<iqr1:rntl'['cch16l,rqv liisl< Il:trngcrncrtr ltavt lrcttt rcvisr:tl:trttl

c11harrccd to bcttcr grritlc ar:d..rclclrcss cxisrirru arid crncrgrrtt rcclrnologt risl<s rvirich cutlrirlt.lt l'ls ll.rnli .\lril:lll

lointly rvirh thc (lcntr.;rl Barrk IC'l Ouiclclir:c has dcvclopcd ltrd ti>nnulltcd l(.1 liuirlclLrtc to Protecl thc l::rnl':

wirh pr>ssiblc thrcat and to prcvcrrr irauduierrr trxnsactions through vitrious alrernltivc channcls (:\'t\1, I'()S,

lnternet Ranking) ctc.

Bank Alfalah Lirnitcd Bangladcsh Branch Nenvork -OperationsBarrl< l\lfirlaI all scvcrr branchcs has it's orvn br:rnch bankinq Applicariorr iiSrnrtrr) which is r'urtnirttl in cat:it

bra.c6'. irr dc-ccrrtralizc{ crtyirorr,trertt ltrc ittrcrctlttttcctcri vra lrigll *pttiJ Vl)\ i\:rrtltal I)rilrtt. \(t\\()rl(

conrrrrtrnic;rtior: linl<s ro pr<rvitlc arrr lrrartclr Ixrrrl<irrg scniccs ti, ii's cust<,mcrs rrt B.rntll,riJcsh. l]irllk' cLrst()rllct:

c,trr gitltclrlq,, du1:r>sir rlt.rrrcv frorn anv l.:r'artch ancl rlso cart re(lucst {i)r ir,tt:s[cr tli'iirrtds:trtcl r>tlttr rc]arc.l

banliirrg scn,iccs rirrotrl5lr it's iSnrl t Flarrkrng Allplrcltitln Sl stcrn

BACI{ (Bangladcsh Automated Chcque Clcaring House)'I'hc Barrk has succcsstully implcmcrrtcd tlrc Batrgladesh lJenl< Automatcd Olrequc (.lcrring St'stcnr lir\(.1)S

l)ue rr: ir:rplcr:rcnration of IIACt-{. I{igh vllucs chcclucs arc clcarcd on tllc samc clav irnr.l rcgultr valtrc (.hcqtrcs

,rrc clcar withirr 12 horrrs. Sincc tll llarrl<s arc undcr r\(.1[ Ne nvork, the oLtrstrtirtrrs cltcrlucs rvltich ucr'c u.ctl

16 takc 7/8 <Jays tr; rcccivc tirrrds rtorv it is clcrrrcd on ncxt utolnirrg. B.'\()l-l prr>ccssirril is Jonc ttrtticr tltc strict

lia11lll.rclcsh llailk guirltrrrcc, IJ-\(.t I drta c()ilrntunicari()rl arc cr'lcnJ)t(d ilnd lrighlr scctrrecl. Ilrc l]:t:rli. irri::tls(l

corrr.rtcrcd r11 thc llanllladcsh B:tr:k l)l{(L)is;rstcr liccovcrv Si.lc) sklc I() ll)cct:lrtv c()r:tir)ucrlcv [)l{'l'tsts.rrr'

1:erfrrlmcd pcriodically in coordin.trion rvith Ii;rrtglndcsh Blrlk

BEFTN (Bangladesh Electronic Fund Transfer Nctwork)'thc BIllrl'N (Banghdcstr lilectronic Fuud'['ransicr Ncnvork) is rvidelv uscd [or bulk Payrncnrs i.c. I)ivitlcntl

wlrrri\qtsr Steffs srlan. arrd as rvell single trlnsactions. 'I'hc Banl< is in thc l)roccss oi lrrtrncltirtg <,I llcrltitr'trrcc

Proclticrs vcrl'soolr ro tircilitare nriqrrnts rvr:rl<crs spccillly in thc micltllc casl ft)r srnt,orh rcntirt,trtcc t'i rhcir

H-/c'

Irard calrt rtrortt't'irt It.rnglaJc'sh. l'hrotrglr tirc lil.tll'N thc tirt.ls c:u) l)c rr:ursf(lrctl orr tlte slur)( (l:rr at:ul\banli l;r:rnclrcs acr()ss tir(i courrrr\'.

CIB on-line Projcct: llank.\lfalah Limitucl has succcssfulll'dcvcltlrcd ar) irrtcrtrcc itpl.llicariorr rhtruqlr rrs irr-

house expertise and tirnely implemcntcd thc CM proiec wirh thc guidancc r>[ Btnglrr.icsh Bank (.lt] 'lcrrn.'t'he CIB rcporting is bccome live with thc ncw system, rvhich hes additit>r:al featurcs

Connectiviry *'ith NPS Nenvork: '[o providc 24/7 rour:d thc c]ock banking scr\'rccs ro ir's crrsromurs, Iianl<

;\lfallh l3engladcsl] has succcssfullv hunclrc<l ll-barrliiuq Pr'oiccr in Bangl:rdcsh. llrc llrnlis rVl \l St'itclr is nou,

connrclccl to NI)Sli Srvirclr r.f tl,t,r11),tdcslr ll,irrli. r''lrich hrs cnal,lcd to rlo trrrt.:lctt,,rs ilont anv ,\ i \l'. i(rr)sitltc courlttv u'itlr thc rrorrrirml transacriorrs clr:rr.gcs. Irr Nl)Sii N(tu'()rk apprrisrr:rrrclr.l0t)0,'\'l'lls rrr( cr)nnccrc(l

rutl or.cr thc B:rngladcsir.

Launch of Rctail Banking Products: '['he Brnk has hur:chcd numbcr oI rctail ciclrosit prt>tlucts ro lacilir.rrt'

k>rv cost dcposit mobilization.

Launch of Deposit products : Bank:\lfalah has successtully latrnched nuorbcr dcpr>sits pr<lducts to nrobilizc

lorv cost tleposits.

24/7 Call Ccntre Sen'icc for Custorner Supp<lrt: '[o providc sril)p()rr till ir's Dcl>it c:rrds itnc] irl lirtr,rr: cr'((lii

c.rtls,rnd t<r \'j l,l's cusr()rrc[s..ilrt l]arrl< lils l;rtrnchcd ir's 2.11i starc oIart c.rll ctrtrrt scrviccs irr-llerrllle<lcsh.

lJ:rrrk .\ltrrl:rh is rhc f-lrsr lhrrk in It.irrHI.rtlcslr hrrs ir:rr,ldrrccd,r,r-lrnc ,\'l'II l)l\ 5',:rrc'r':rriort ic. crritr,nrcr c:rrr

gerteritc rhc.\'l'trt Pl^\ through thc t>n-linc (..all (-cnrrc rlrroullh tlrcrc rcgisrer'ctl relcqrltonc nunrLrr. ,\l;r,,clicnrs carr gct variuus products inti.rtrnarit>n's ftorrr (.all Ccrttrs i\l{ct'tts.

SIvIS Alert Scrviccs: Ilauk's I'f Team havc dcvclopcd an applications ftrr SNIS u\lcrt serviccs I'rrr arrv dcl>it /crcdir rrarrslctions talics place in clicnts accounr. Thc SI1S scrviccs arc avail.rblc [<rr rhe regisrcu custoclcrs ()r]

2,1 houls basis.'lir rcgistcr fbr SNIS Alert onc has to fill-up the rcg'istratiorr form rvirh valid l]arrks .\cc,rtttrr

N untl;cr unrl \l,rbrlc \ ttrttl:cr'.

DltS (Docurnent IUanagcnrent S\,stern lrnplernuntation): ll:rrrk.\lt,rlrlr li,rrgl,,rlr,sh lccc,ttlv itttplc:ncrtrttl

rhc l)ocurnent Nlanagcrncrrt Slsrcrn(DItS) rvhich ortc of tltc rtrt>st acllartccd svslctll t() sc;lrl all lrltl)ort:lllr

documcnrs and store it in the .\rchivc Scrvcr. '['he Scanned docunrcnt could bc vicrvcd ir<:m anv br:trtch t,i rltc

tsanl< if access r() rhc document is provided to the individLral. r\lso, handling clir:rrts qucrl', (lcrrrraI iJarrl< :rnti

regulatory requirements could bc donc in a minimum ti:nc.'l'his has irnl:rt>r'cd thc client scrviccs srandard.

tnd hirs rcduced transaction turnaround tunc an<l bettcr co,trrol r>vcr scrtsitivc docuttrcnrs oI thc benli.

fi-stltcnrcrrts: Ilerrks Iras sut:cusslirilt,lar,nclred tllc c-ittrcmcrrt sur\rccs r() i(i cusi()r'tlcr. c-srillsrtrcr'lls.tr!

nr;rilcrl ro cust()rncr rc6isrcrctl crr:Lii;rdrlrcss l')-stirrcrnt:nts ltrc 1;rtsst'ortl prt)icctcrl rttd 1,;tssrvt,rcl is scrtt rr, rlt,

cliinrs rcr,,istcrcd mobilc rruinlrgi. \\'rrh tlrc l.rurrch ot't'-sralcrrtertt har.c irtcrcastd (:liurlrs sitris[ncriorl uirlr ti,trcl'

dclivcrr ()is(ittcnrc,rts rtlst> srtvcs p,inring arl(l sr;tri()ltcrv costs [or the b,rttli'

RTGS Projcct Inrplcmentation: IJlok.\linlah hls succcssiully irrtplcnrcrtrcd rhc l{c.,rl 'l'imc Gross Scttlerncnt

Projcct wittr thc help of Bangl:rdcsh Bank I)SD( Paynrcrtt St'stcm Dcpertnrcrrt) lrclp. -l'hrotrgh ll't'GS the

paymcl)rs trc scrrlcd rviih shorrest possiblc tirne. '['hc lt'l'GS is rviJclv uscJ ltr' 'l rcastrry (lcl)arlrI'tctrt ()l- rhc

Barrlis also ir is cxpectcd that high vllttc tr:trts,tctiotrs will risc in duc cotrrsc.

Internet llauking : 'l'hc lJanl< is in rhc proccss oi irnl:lcmcrrring thc lntcrncr llarrkinq in llartlllaticsh. 'Iltrouliir

Inrcrnct llarrking a customcr can clreck his account balencc, rnakc utilitv [:ill pavnrcrrrs, rc(lucst ft)r cl]c(lr.lc

boolis, rransfcr of funds ctc. fronr thc comfort oI their hon'rc rlr ofticc from smlrt pltoncs

l'hc I1'- Teanr : Thc Il.rnk .\lfirliLh Intirnrrati<>n'l'echnokrgy'l'c:nr is conrpriscd of trtlcrttctl antl ricilicaic.l

sr:rf fs lr',tving cxpcr'ier:cc in lnft,rrr rtiorr '['cchnrrlogv for ntc,r'r, th,trr 33 \'citrs. I hu i'l i Ic.rcl lrrs rr't,r]<cti irt rt

rcl)ur(.d intcnrariorrel barrl< irr B.rrrghdcsh ,rith .vidc l<n<>u,lccluc of II (io','crrr:rrtcc irttil liccurirv ritd P;'t,lrlcntsolvro.q calxl.lilirics. I Ic hls llsr, .rrrcnrlcd nrrrrrbcr oi l-l' ir.rirrrnq/ scrnin trs / rvorli sitol-'s [)()tl] lt,)rt)( arl(l

lrbro,rd.

Ff/t

3.25.7 Internal Arrdit'['he Board of Directors have instirtrted an cflcctir"e lntcnrai r\udir I)ivisior: ivhich nor onlv rronir()rscompliancc with the barrk's policics, procedrrrcs and c<>ntrols and report significantlv dcviatirlns rcgrrlallv ro rlrcB<lard Audit Committee but also regularly rcr.icrvs rhe adcquacy oIthc Intern:il (]onrrcl Svsrcm.

'l'ltc obscrvations:rtrd rvcel<r'tcsscs arc adclrcssccl prornptly lnd:rcccssary stcps xrc rakclr I:v tlrc minal4unr(.,rt t()climinatc rveakncsscs.

3.25.8 Fraud & ForgcriesBauk ilas an effcctivc mcchanism in phcc ro dcd with any fraud & tirrgcn,. Ir hrs Fraurl & lnvcsri.grri<;n Unirand ,'\udit & Inspcction GrouJ: ar Iicrcl Office that rcports t() thc Bo:lrd rlrrouuh rhc lirrrcl's .\ucirrCornnrirtce. t\ny itrstltrce of oI fraud/ forger.y / misappropriirtiou / embczzlemerlr/ ncgligcncc crc. (ivrth 6rwithr>ut malafide intcntiorr) occurring durirrg thc n<>rmrl coursc <:f l:usiness is rcportcd.& ro srli'gurrrcl'sbanli's intcrcst, proccss <>fdisciPlinarv acrion is ral<crr. Bank has dctlned l)roccss to rirrrclv llroccss disciplinln,acti()n ctlsc bv conductinq dorlcstic irrrluirics for arrv of thc oftinccs listed irr thc l:olicv.

[)uring rhc pcriod no fraud uas idcnrificcl bv rhc Brnk.

3.26 Corporatc Social ResponsibiliryBarili Alfalah ovcr the ycxrs h,ld cngagcd pro-activcl\'oo dit-tcrcnt (.SIi cndcavors addtcssirrg rlre rt,cir>-

cconomic devcloprleut requircmcrrts of thc counrry's srruligling rnd financi;rllv dis:rdvrntal;cd scgrucnr ()i rllcsocicty, focusit)g sonle of their idcntificd thrust scctors t<> tl:c lil<es oI cducaciolr scctor, l']calrlr sccr()r,comttrtttritv ar)d crlvir()orncntal tlevelopmcnt erc. llank cver since irs inceptiorr has also'Decrr rnr,dclntclt tetirul

l)art in pr'()nroting vari<lus irtiri:rtivcs and sp<lrrsorcd numcroLrs social iniriatir.cs likc rl:c l'.ational (.hrklrcrr's

Ir:rmr,rrrization llrogrlrrt, posr [-iulricrne d,lrration to rclic[ ftrrrtl, Etltrcarrt,rral arrt.l ]'.xrr:acrrrricular er)clc:r\'()rs.

Prontr>tion of Ctrlrult: & I'Icrirlgc, suppol't tirr Womcr: F.lrrrrcprcnctrrs, I)romi,tin11 sp()rrs anron,{ \'()r-rr1a

Benerarion through sl)orlsorship, prrroniziuu ctrccr 1:lanning *orkslrr>p frrr rr>rrnu grrdr,ratcs.11d \{9111r1:olis

Bcarrtificatit>n initiativcs etc.'['hcsc conrilruous cftbrrs in CSlt bv the bank;;ortrrvs irs posirivc inragc ;rrrd corc

bclieIto insl:irc and crnpo\r'cr pcoplc rr> do tlrings diffcrcntly and shallc their orvn prrrh in li[c and l>usincss.

Bauli r\lf;rlalr continrrcd sponsoring tlrcir solc scholarship l)r()f,4am in 2[)15, which siartcd froor 2010 incollabrxatiorr rvith S\11)l: rvhiclT pr'ovrdcs sc)rolarslrip to 50 prx:r and rrccdv sru(lenrs rrI ur'[rarr slunr rrrrcl rviilrourrvhiclr tlrev vcrc irr high risk ro tlr,r;: out irorlr schi)ol to c()rllrrl)utc to rlrcir f;inrrlrcs'ccont,nric hc:rlrlr. \ icl r>i

tllc s11()rlsorccl stuclcnr a1:llcalctl tbr SS(. cslmirurtion rhis vcrr rnd ail lrart p:rssecl SS(. cxrrrrr irr orrc go rvirlr

.qood Ci);\ scorcs, l)uring the \cer, bank had t:n(lcrmlicn,rnorlrcr (.SIl projccr irr collaborarion rvirlr'\co Srrr]nr:t:v:rlir>rt'and arr'angcd basic ['['training f<rr 3 b'.rrchcd of l0 t'inanciallv disadv:rntrL{ed srutlcrrt o[ ['liqhctSecontlerv Schor:l level ad<lrcssirrg the dcvclopr:rcur rctluircnrent of btsic tcchnicrrl skills tirr rlrc lirrrrrrworlifrrrcc of tlrc courrtry as a enrcrging dcvcloPing nrtion.

()rr thc hcalth scctor, r ltartdsonrc rlon.trion frorn (lSli [Lrnii was lnanted to thc l]rrrrr Llrrit oi (-lrirtlillrrrti\[cdrcai (,<;llcgc firr dcvcloprncnt t,i its irclirrcrrt ficiliries arrd purchr.c oi rruccss.rrv c(luilrmr'r]rs ,ln(l

;tcccssorics to f:.rcilirarc treatrrcr)t ol critic;rliy l>urncd pcoplc bclong. to rhc pr.lorer scBnrcrrr oI rhc socicrr'.'l orvrrrds thc cnd of the ycar uodcr rhe pun,ierv oi irs C.Sll projccts, thc bank had cnrcrcd irrro e I (rrnc) vcar-

k>ng agrccment wirh Gulsh:rrr Litcrrcy Prog'rar:r ((}i.P) l;oundation, tl.rat is prrvidirrg frce qualiq'cducatiorr ro

p()or strcet childrcn rlrrough rr.,,'o sclrools aud will sponsor fi:r nutririous dicr t<l tlrcnr in thc form o[ nlillrtlrrortghout the period addrcssing rlreir ncccl fc>r nutrition support. lJank had sporrsorcd rur:rhcr'Ncr, Srrrr

Trtr:ovatit:rt'initiativc rramcd "l)relrona" wlrich is ar: Onlinc Digitll Ilcalthcarc l)rlrtal airnctl to l)rovi(lc a \\,irlc

rangc r;f lrcalth carc relatcd tips, sull{estiorrs irr:tl rrrf<rrrnlriorr undcr onc ulnb,:clia lrcc oI cost for qt:rrcral

pt'o1:lc.

,,\s prrt clIcorlrnr,rrtitt devcloporcru irtitiativcs, tirllorving tlrc hislolic cvcnr oIirrclusir,rr oI Il'l [rrrrrrcr crt(l.t\rcils part of li'.urglaclcslr rnainlarttl in 2015, thc l:ank xci(lrcssecl tlrc 1'roor st,ttc oI livclt lrood of thc crrcl:rvc

ds,cllcrs in 3 (thrcc) cnclavcs of Nr>rth Berreal and hrd distributcd [>lrnl<cts arrd rv;trur clorhs / rcccssorcs i()

:\HYL

500 Familics rr> ii.qht bittcr wirrter se.lson, set up 10 tubc rvclls t() casc tlrc scarcirv of [r'csh drirrliing \\,rr(,r sul)pl\in rhc rcgror: end had distributcd school baus & dcntd hcalth hvgicnc prr>ducrs tirr school going childrcrr oI rl:r,iocality. [)uring thc sanre pcriod, l];rnk r\lhlah lrad underrakcrr anorher OSI{ prolcct ro addrcss rlrc rcurcscrtrcirt'of sweet drinking watcr supplv in threc remore villagcs of thc Sr.rr:darbirn arcil, rcsulr;rnr r,r rlrr:concerning scenario o f rapidly increasing saliniry levcl in thc southcrrr rc$on of thc country. Urrdcr tlrc pr<:icc r u

tt>ral of 140 Plastic \\'atcr'I'artks, having capaciry of 1000 lirers crch lud cquippcd ',r,irh raur wirrcr l):rr.\'usrilr:and storirtg cc1ui1.lrnents / acccssorics, will bc distriburcd rrnougst thc h<>uscholds / farrrilics thet arc livirrg irrthc arca.'Ihus the,v will bc traincd u,irh rain water harvcstirrg teclrrriclucs thlough cxpcrrs arrd rvill corrrinrrc ronronilor proL'rcss t:f thi: sar:rc for rrcxr 6 mrlr:rhs. 'l lrc rr>rll cosr <rf rhc pr<,iccr s ill bc Irrlrrtc i;v rhe blnli al:tl rhcl,t:al corrrnu^itt'on 80:20 basis lrrd will be adrninisrcrcd bv \la.rgcr:rcnr arxl Ilcsorrrcc I)cr,ckrprrrt.rrr Irriri,rri't:(\rnDr).

Bcsidcs, in vicw ofongoirlg cnergv crisis in thc cr>untry and patrorrauc for (]rccn [-:ncrgv bv ]]angladcsh bank.u'c ltad conrinuecl thc n:eirttcnancs of oLlr soler llowcrcd ,\'l \l boorh irr 3015, rvlrich rvirs insrallcci bacli inC)ctobcr 2010 as tltc tirst cvcr solar 1:owcrcd l\'[LI booth in rhe courlrrv ilnd llld scr xr'l oxaft)p]c tirr barrkirrig

csral)lisllolcltts ort cffccrivc utilizarion ofgrccn crrurgy. This is also a silcnr, s:rfc arrci sinrplc pou,cr solLrrit>n rharcnsurcs polluriorr trec cnvirorrrncnt :rrrd rcdilce e ln:ln:ltion grccrl h<,Lrsc g.rscs.

3.27 Conrpliarrce of Bangladesh Financial Rcporting Standard (BFRS)

Irirst-rirne acioprion of Banelaclesh Irinancial IlcporrirrrSharc b;rscd Pavment

ilusirrcss (lornbirrarions

Insurancc Colltracts

Non-currcut Assets I Iclcl for Sdc ;tnrl i)iscontirrLred

)ixploration for and f'lvaluation r>[ i\[iucral ]{csorrrces

Finarrci'al lnstrun)cnts: Disclosurcs

Opcrating Segrnents

(.onsolidarcd llirraltciirl Statcnrcnrs

.l r)inl .\r'rangclllcrlrs

[)rsclosurc ()f Intcrcsts irr (.)tlrcr l.:rrcirics

ltair \ aluc N'{c:tsLrrcmcnt

Prcscntxtion oI ltiinancial St:rtclnel]ts

I over:torics

Strrtcorcnt of cash tlows

,\ccorrrrrirrg Policics, (.lr;rrrucs in .\ccourrrirtrl Ilsrinrirrcs an(l

[;r.crrts .r[rcr tlrc l(c1.lr>rrirrg l'criotl( .orrsrrucriort ( lorrtracrs

Irtcoorc'['irxcs

Property, Plant and EquipmcntL,eascs

Ilcvenuc

F,mploi'ec BencEts

Accouuting for ()ovcrnmcnt (lrants rnd Disclr>sure of(;()vcrur)rcnt .\ssisritncc'I hc I'.[ti'cts o[(.hrrrgcs rn Iioreirlrr I:irclrrntlr'lirrtc.Hr ,Lr', lt tttg ( .os rs

licl;lrcJ I';rrtv I)tsclosrtr'cs

.\ccourrting and llcporring by l{ctircnrcnt Llerrcf-lr l'larrs

rstilidatcd and Scparatc [rinurcial Stiltemcnts

RFtiS-1

HIrRS-2

ltirlis-3lllrlis-4ltr.RS-5

flt;lis-6BI;](S.7

ul:iis-8

Ilfrtis- 10

Iltrl(s-1 I

llrilts- 1 2

llFlis- I 3

tsAS-I

b.-\s-z

B.\S-7

li,\s-8ll.\s- I J

r).\s-1 I

ts.\s- 1 2

BAS.1 6

BAS-17

B.\S-18

BAS.19

B.\S-20

Il \s-21

ll \s-23li.\ s-2.r

Ll..\S-26

BAS.27

B.{S-28

'\, plrliuJ

.,\ p1:lrr',J

\<,r \pplic;rt:lc

:\ plrlicJ

r\pplicr.i

r\p1:licd

:\ pplicd

,,\ pplicd

Nor \pplic rl)lc

.\plrli, iJ

..\ lrplrud:\ p1:l rcL!

Not ,\pplicrrblc

N<rr,\pplicablcNot .\pplic:rblc

Not a1:plicablc

Nr:t ;rpplical:lL:

\ot upplicablc

N<,t applical:lc

Not ir1:plica[:lc

Not irpplicablc

.,\pplicd u'ith sonrc

dcparturc (nore 2.1)

r\pplicd with soorr:

clepartrirc (rotc 3.30)

Not.\p1:licrblc\()r \l)Plic rl)lc

\or ,\pn11.,1,1.

r\plrlied rvillr sornc

rtrrrt (notc 2.1)

r\pplicd ri,ith sor:rc

Lturc (rrorc 2.1)

N<,r .\pplicrrblc

r\pplicd r,,'itl: sonrc

:ar'rurc (norc 2.1 )

ll

Nenre of the standards

investmcnts in Ass<>ciates

wu

f inancial ltcporting in I-lvpcrinfl arionary lict>rronricsIutcrest irr Joint Venturcs

Firrancial Instrumcrlts: Prescntetion

I')anrirrlls l)er Sharc

Iutcrirn I riulnciai llcpr,lrting

lmprtirnrc nts of .,\ssers

Provisions, Contingcnr l.iabiliries and Contingcnr ,\slnrangilllc Asscts

lnstrunrcnts: Recognition and Nlca.surcmenr

lr:vcslnrcrrt prol)crtyl.lgicrrlrur'c

3.28 Crcdit Rating of the BankAs per rhc BRPD instruction circular No.6 dated 5 .f uly 2006, rhe

l{atiug r\gencv <>f Bar:gladesh Lirnitcd (Cltr\B) bascd on tlrc financirlbar:k hrs donc its creclir raring l>v (.rcclir

statcments darcd 3l l)cccrnbcr 2015.

B.-\S-29

llr\S -3 I

BAS-32

Il.{ s-3 3

Il\s-34B-\S-36

B.-\S-37

B,\S.38

BAS-39

B,\ S-40

Il.\s-11

Nor,\p1>licablcr.-or.\pplicablc

p1;licd rvith sonrcclcparture norc 2.1

Nor .\pplic;rblc

r\ p1;lit,d

;\ p1.llicd

r\ pplicd

.'\pplicd u,ithclcllarrure scc

Ap1>licd rvithrtrrre sce

so ntc

norc 2.1

somc

rrotc 2.1

Nor\r,r

\ pplic:rblc

\ pplrc;il;lc

Orcclir l(ating r\gcncv oI l3ungladcsh Linrired (]l(,r,B) hrs rrpg.aded Inrg '1 ..,n l(:rrrrru fror:r ..\l to .\l(l)r<>rtor.trtced Sirrglc A one) and rcutined "sl'-2" r:rting in thc Short'['crrn oIH.rnii.\llrlah I-,iurircd lBarrgl,rJcslr

Opcratit>trs) bascd on audired furarrcirls for rhe ycac cnded 31 I)cccnrbcr 2014 and orhcr relcvanr intirrnrrriorr.

Comnrcrcial Brrnl<s ratcd r\1 irr thc k>rrg terr:r bclorrging to "strontl cepaciry & high clualrrv" cr>horr. IJlrrl<s rarcrl"r\1" hlvc strong capaciry to mccr tltcir finirncial conrrnitmcnrs. Al ratcd banl<s arc jud.rlcd to l;c oI hililr clLrrlinilrrJ;tr( subiccr to l()\v clcJrt risli. (.orrtrnercral llarrlis rarcJ in rlrc slrorr tcrnt S'l-2 cttcl{()rv arc consrJcr.ccl rohavc rl:c sttottg crpacitv iirr rirrtclv rcp:lvmorrr oi olrliglrionr. (.ornnrcrci:rl lirnlis r;rcil in rhis r':rrtqrrrr .rrcchilrrtct((izcd u'ith coLrtnrcrtd:rt:lc positiorr irr rcLrns <lf liclrrr.jirv, irrrcrrr:tl fund gqr:cratiorr, r;tti ac,:cs; t,,llterrt.ttivc sourccs oI tirncls.'lhc rxtir)g reilccts t]rc IJirrrk's soLr,rcl capital adc.1u;rct, inrltrosccl rrssct rlLralrrv irs

rycll .ts increasCd nct irrrcresr nrxfgln.

3.29 OffsettirrgFir:arrcial itsscts attd liabilitics are offset and thc rlct amolnlt 1:rcsentccl in thc bal;rrrcc

s'hcrt, the Bank h:rs a le1;al Li.ghr to sct off thc rccogrrizcd irnounri iurd lr irrtcrrtls cithcror to rc;rlizc tllc assct rrn,l sctrlc rhe lirbilirv srrnrrlrarrcoLrsly.

IIrcr>ntc:tttd cxl)cnscs ilrc pr(scrlr((l ()n ir nc( b'rsis <,nl1,rvhcrr 1.lcrrnirrcrl trrrclcr IlFliS.r.itnsirll{ {i1)nlJ gf()up ofsinrilrr trrlrisacti(}rts sLlclr ls irr rlrc Balk's ttrdrrru rctir.rrr

shcct whcn, ;rrrd <,rrlv

to scrrlc or: a nct ltlsis

or tirr g:rirrr arrrl lr,sscs

3'30 Opcratingsegnrcnts'l'hc Bank ha:: no idcntified operaring segrncnt and as such prcscntation of scgmcntal relx)rriug is rrot umrlc irr

thc financial statcmcnrs as pcr B[;ltS 8.

J.3l AMt-'l'ltc sis corc risks lravc bccn qivcn duc intport.trrcc arxl nrcricutr>us nronirorinq oftlrc rislis hatl bccrr crirlrrrldcclirr thc tl;rr ro d:ty oltcrrtitlns,lirhe i:.rrrk [r,r c[[ucrivc cortrrol (]itlre sarrrc. B,rn11l;trl.slr Il.rnli rccontrncrrrl:rti,,,rson .'\l'fl, and I(.'l wcre fi,llv in',1>icnrcntcd rr lric[: rcstrlrcrl irt l:crrer latints tor ,.\\il. trnJ ](.-'i rlrrrrn.q tire rcr,..2015.

ParticuIars Date of Ratins Lorrg tcrm Short tcrnrI inrin' Iilrirrq 2l-i\tav-15 ;\1 s'l-2

,.<"".-"I\

(i Hv"; t l.

3.32 Grccn BankingBnngladesh is considcrcd as one those countries thar rvill bc scriouslv affccrecl by rhc unei,oidablv obgiousadversc effects of worldrvide global rvarming inrpact to the likcs oiclimate changc, incrcasccl soil salinin,, risirrsscu lcvcl ctc. and fcw of rvhich is grlduallv rcvsalirrt rrs cr.iclcnt in immincnt futurc.'['irc l>ankirrg indusrrr of tltccountFr', rvhilc rcmainin.tl itctivclv crr.gegcd irr a pivotal r()lc r() cr)nstirutu ancl c:rt;rlvzt,cfflccrirc (lcviilol)rncrtr /'srrctlgrltcnirtg tltc rlrr.trrcial b:ckl:onc of rtrtiorr sh<;ulil al:o acr rcspr>rrsibh, r() adtlr(.sl rhc'pnrblern .rrrd rlrLrsltc{o|tctl thc pracricc of-(lrccn Il;rrrkirrg urld0r srrolig p,lrroni.qc ,rfirs rcqr:lar,lry llocli l}rrrirllarlcslr Hlrrlt

Ctccn banking refcrs to the efft>rts of thc l]anlcirig sector ro kccp thc cnvirorrorcr:r grccn anrl rninr:nizcgrcenhousc effccts through rationalizing thcir sraregres, policy, dccisions and :rcrit>ns perrainiug to barrliilgservice, business ar:d ioternal opcrational acrivities as wcll as to educrte aud rnotivarc their clicntclc r9 td6prgrcen Prllcticcs through ofiering financially berreficial bankirrg serviccs and prctcrcnti:rl parrr>nizarion. (irc'crrbankirtg tllus miv be considcrcd as rhc initiarivcs frorn thc blnks cncl as part ,>i rhc nirrion's collccrivc irriri.rrrvc:rr> save ctrvironmcrlt. Grecrl banks or crtvrrorrnrcrrrallv rcsponiiblc barrks rror orrlv jtrsr dcvclop arlrl csr;rltlrshrltcit or.r'rt prirrciplcs btrt rlso cxcrts socirtlil rcsprlrrsil:lc bclr'lvior t()\\'ards orhcr [:usirrcsst.s. ln;rccr.:rrlaqcc rvirlrrhc 1$oLally acce;lrlblc stxrlclard arrd r'egtrlarolv trarne r,yr>rli irr voliue ri.lr glceu l:arrkin1l, ltank .\llilitlt rs;rcrir,clyirrvolveil in the f<rlkru'ilg grcun acriviries:

' Gradually moving towards glcen tinancing and hrd inc<>rporated I'.lnvironmcnral llisl< Gradirrg irr ourCrcdit r\p1.lroval 1:roccss.

' ()1;crarirrg onc A'l'\[ lJoorh rvith rcnewab]c sollr pou'er (tlllv) arrtl 1:lar:nirrll ro c()nvcrr all crur .\'l\[iiot>rhs ro grccn ,\'l \ls.

'l,ar-rrrchcd clcctronic b:tnliiog products and transacrion scrviccs likc l)cbit (lards, Inrcrncr Ii:rrrkrn11, li.stalcrncrlt, SivlS .\lcrt, tsl-ilil'N & Iil'C;S scrviccs to rcducc rhc usagc of prinrirrg prpcrs and srxrioncrcs.

'Iteplaccd cor)vcniionxl clccrronic c(luiprlrcnrs s'ith cncrgy cflficicnr ancl grccn cguiprncrrrs.

'l,rtLrnchcd'Vidco (,orrflcrcrrcirrg" tlrrouqh "lP I)honc" to iniriarc mccriu!{ irr licu oiplrlsit:al r'-:rrcl ruhiclrwould hell> saving c<>sr an<j cncrgv.

'l)crsottrtl Iclcntiticarion Nurnbcr (l)l)i) drlivcLt fr>r cards hls in thc l)ilsr bccr) a costlv and irrcorrvcrricrrr

ltapcr-bascd process. Custonrcrs rvart lor clelivcrv o[l)aper l)lN that can bc dclat'ctl duc to,r \:lri(r\,oIrc.lsoos. 'l'o address thc issue, Rctail Banl<ing tclnr explored alrcrnatc rncdiurns tor l'}lN dclivcrv arrrldcvt:lopcd a ncrv I)lN sertirlg r/i:l phonc b:rnliing solution i.c. customcr sclccrs rhcir r>wn l)[N uptrorrr vi.lthc phone. It's c,:nvcnicnt, near' instantlncous, secutc and paperlcss

'(ir:rduellv rcplxccd.rll [:.rrrk r,rrintrinctl rr:losl)orts rrirlr fucl cftlcrcrrr rlrcr'rr.rrirc:.

' Introduced atld implcrncrrted "(irccn ()ftice Guidclirre": addrcssirrg lrossil>lc ilvcrlLrcs oi rcrluctrl in.lrousc Carbon footprlrt in thc b:urk.

' litrrrdcd a 3 ycar lor:g l)alm'['rce I)iarttatiorr projcct in thc cyclone lffcctccl corsral arca acltlrcssir:u rlre

cf[cct oI global rvrtrning on c()astal pcoplc. '1'hc projcct rvill lrclp thc irrlrabirants of rhc r'cgion to copcwirh srrclr ttatural calxrnifv ls rvcil as u'ill gain finarrci:rllv ironr thc p.rlm;:lanrarirrn hrrrvists.

3.33 Nes' r\ccounting Standards

li,xccpt tbr thc cltangcs belou', thc Ilank has corrsistcnrlv a1:plicd rhe accountirrg polrcics:rs scr ()ur irr \jorc 3 tolU pcriods presentcd in thcsc financial sratcl'llcrrts.

'l'lle Bank has adopted rhc tollorving ncw srandxrds rnrl lnrcndnrcrrts to standards, incluiling arl conscrlucnriailnrer)(lulcrtts ro othcr stand:rrds, rvith a datc ofinirirl appliciltion oi1.|tnuarv 2015.'lhc eftccrs ofrlrc clr.rngcs

xrc ilso cxplainccl bclrrv.

(a) BFRS 09 Financial Instrunr.entsBFRS 09, published in 2014, rcplaccs thc cxisthg guicllnce in Br\S 39 financial irrstrulr)cnrs: l{ccogririonar:d nre:Isurcment. IlFllS 9 includes rcvised guidance ,rn rhe classificatiorr and mcasurcnrcnr of thcfinancirl insturnrcnts, a ncrv cxpcctcd cr'cdir loss modcl ti>r crrlcrrlating irnllairrnerrt tirr llr'.rrrcial asrcrs, anrl

rhc ne\\ gcrtcral lrcdr;c tccoLrrrting rc(luircrrl(nts. It also carried ti>rw:trtl rhc liuiC;rncc oIrccourricir>n arrcl

Jcrccogrririt>rt oi finarrcill irstruntcnrs frorn IiAS 39. BIritS 9 is cftccrivc tirr arrrrr-ral Lcporrinll l)(.ri()dibcgirrnirr.g on or afrcr I Jarrtrar\,2018. u'itlr carly adoJ)(ion pcrrnirrcd.'['lrc I]arrli is vcr r<, asscss rhc

l)otcntial impacr <iiB[;llS 9 r,n thc firrirr:cial staier]lcnts.

(b) BFIIS 15 Reventrc frorn Contracts with custorucrsBl;1{S 15 cstablishcs a comprehensivc frarleu,orl< fc>r detcrming rvhethcr, ho*' much ancl rvlrcrr rcvenuc is

rccognizcd. It rcphccs existing rccognition gtridancc, incltrding B,\S 18 l{cvcnuc, B;\S 1l (.orrstrru;tiorr

(.:or)trircts and Ilt-ltS 'l 3 (lustonrer l,ovalry'l)rolpanrmes. []lrlis 15 is cffcctivc tbt aurrual rcporring pcriods

bcgirrning on rlr after 1 .lar:uurv 2018, ri,it]r carlv adoprir:rt pcrnrittcd.'l'hc lrarrk is vqt ro rtsscss tlrc l)()tcrrrialrmp:rcr of BlillS 15 on its finirncral starcmcnts.

3.3,1 Atrdit ComruitteeIvlr. Kanrrln \'. \[irzeNlr. Abdulla l(hilil Al l\lutrrva

VIr. I(halid N{ana Saced ;\l Otaiba

\l r. [:] ti tra ti<ls Geo rgnr>s .'\ra1;<>glou

\[r:. Yasar Rashid

3.35 D;rtc of Attthorization'llrc tin;rncial statcmcnts wcrc authorizeC li)rC)1:cr'atrorrs on i\{arch 30, 201 6.

(lheirmao

[)irccto r

I)ircctorI)ircctorSccrc rary

by tltc senior m;lnlgcrncnt t:i the Barrk, BarrglirJcshtss ue

1.36 Workers profit participation fund (WPPF)

As per llanglatlcsh Labour ;\ct 2006 fthc Acr) aud antcrtd,:tcnts thercoi arr cntplover is rcclr.rircd ro p:rr 5tzo oiits net profir to tllc 1) Worl<crs l)arriciprrorv lirrrrrl,2) Workcrs Wclhrc Irurttl antl 3) \\torltcrs \Vcltrrrc

llouridarion Furrd lt>r [ulthcr a1>Prc>priate dist:urserncr)t oItlrc lunrls t<t lll mcm[>crs (ic l]cncficiarics, its tlcfirrcd

undcr tlre Act) es prcscribcd uudcr thc Act. Ilorvcvcr,thcr'c is r rrnrbigtriry arourtd tltc irrclr,tsir>rt <>i lianking ,rnLl

Non-lianl<irrg Firrancill Insriturions rvithin thc sc()pc of Oh:r1>tcr 'l 5, WPPIr undcr thc Berrglaclcsh l-rtl:our .'\ct

2006 (thc l\ct) and the subsctlucnt aorcndnrerrts thcrcof.'[hc tnrbiguiry vct to bc sctrlcd.

'l hc banli obraincd o1.linir>n trom irs lcgll advisor lcga.rcl.inii tlris isstre. 'l hc lcgal ildvrsor opincd rlrat thc

lcgislarors dicl rrr;t intc:rcl to usc thc tern: "corn1:arry"'.rrrd "csr',rblishrncnt" sl'nor'Ilttrottslt', Itcncc, Chalttcr l3 is

r':r,r ri:plicrblc ro llanl< r\lralal:,rs ir is I torcig,r c()nrptrlv, uttclcr rhc Oriotltrtrtic..\cr i99'l arttl :t "lhnliOornparrv" uudcr the llarrl< ()orn1>inv r\cr,199l.llerrcc, r:o prtxiiion l:rs l;ccrt metlc tor llrc s.trttc.

3.37 GcncrulFiuur'cs oIprc,.,ic>us ycar havc becrr rcarrartgcd, rvhcncvcr nccessirrl, tt.r conftrrn: the currcrll tear's ltrt'scrtrariort.

Vle

2013'Iirk:r

2014

fit!,rCrrslr

In harrtl1.,<>cirl currcrrcy

Forcigr currency

Balance with Bangladesh Bank and its agent Bank[,ocll cr-rrrcncy

['ilrci.qnt cutr:cncy

4.2 i) Cash Rcscn'c Rcqrtirerncnt (CltR) for Convcnlional Banking6.50h of average Demand and Time Liabilitiesl(c<luired rescn'e

Acttnl rescrvc hclcl

Surplus

ii) Orrsh Ilcscryc Rcquircrncnt (ORR) for Islanric Ilar:liing

6.50,/o of average Dcmand and Tirrtc LiabilitiesI{crlLrired rcscn,e

i\ctuel rcscrvc hcld

Strrplus

4.3 i) Statutory Liquidity Requirenrcnt (SLR) for ConvcntiorralBanl<ing

l30zi, of rctluircd Avcrtgc Dernand and l'inrc l,i.rbiliticsl{(:(luirc(l rcscrVc

,\cnnl rcst'rvc hclcl

Surpltrs

l'Icld for Statutory Liquidity Requirement(lash in hand

ll'.rl:rncc with lhnghdcsh Blrrrk as l)cr srrfcri)cnr'l'r'casurv l>ills (l Il:"1)'li'e:rsurv borrds (l l'[\[) rvirlror:r licn'lic;rsurv borrds (l IIrt)Ihnghdcsh Barrk liill (l-ltrl)I)rizc borrd

407,888,809

465,3,- 6,151

___n,4nla_

200,383,301 206,197,875

334,984 ,452 21 | ,596,916

__111{01,1i1_ _l2lqzL

815,7;-7,611 721.-15-1,.l'ri0

3,1 14,175,5 r8 t,59().955,1.i1

___2,2e3,6e19 3J_ ____1,86Uq.Ui1_

fiM.eeo-?ir,l l- r5&7s]l82l

| +,o,so+l | :,qoq,sq;l117,447,510 16t,661,079

791,291,556

491 ,860.5 J'1

604,071.tt3rit.l4,()1 7.(r.15

1,283,752,093 1,048,989,992

__l4gi2I]l __t?.M8e614,1 (.rrsh lleservc llecluircnrcrrr ({)iili) anJ Sr;rtut()r\ )-iquiditl licrluircrttcnt (Sl.ll) havc bccrt calculatccl rrrd

n::rLrririrred in accordance with scction 33 of thc Bank Companics :\ct 1991,N'll)D (,ircul:rr rtos.4 & 5, datcd 1

Dcccrnber 2010, NiPD circular no.2, dated l0l)eccmbcr 2013 and i![i)l) Circrrlrrr no. l, dated 23.lrrnc 2()14,

DOS Circular no. 1, dstcd l9Januarv 2014.

1'hc stanrtory Cash llcsen'e Ilcquirement orr thc Brnk's time and clenr:utd liabilirics at thc ratc of 6.50/o for l;othccxrvcnriontl and Islatnic banking has bccn crtlcu]ared and rnrinraincd wirh Benglarlcsh llank in crrrrcrlr ;rcc()unt

and 139'o and 5.59'" Sratutt,ry l,i.ltrirlrv RetlLrrrcnrerrt for cortvcritiorttl arrd Isl.trrric b;Lnkrttg rcsllcctir.ch rrn tltc

selnc lirl:ilitrcs has alsr> bccrt rrr:rirtt:rirtcd irt tlrc tirrm <rf rrcasr,rrt bills, I>or.tds artd tlcbcttrttrcs irrcltrdirrg [;(ilralarrcc rvitlr l]urrglrrdcsh Bank. liorh lcsclv(s nrainr'lincd bv rhu liank. arc shr>rvrt l.rclr,rv;

.i60,716,7 10

39 ], 1 ,).r,8 ] 5

___l3r!s!E_

19,322,216

I (r5,37 6, I i 1

155,800.000

2,.t I_3,887.8,91

89,300

__1J11,ffi,ffi_

91,87 3,?-.t7

i9i, l').r,s l516),5.11,531

155,8()0,0rX)

I .7 8-1,-i 5l,2rr8

10,2D0

___?iggJi11ir_

2r

5

5.1

ii) Statutory Liquidity Requirernent (SLIt) for Islamic Banking5.570 of required Averagc Dcmand and Tinre Liabilitiesllcquircd rescrve

r\ctual rcserve held

SurplusHeld for Statutoq' Liquidity Requirernent:(lash in hand

[]:rlence with Banl:larlcsh Brrrl< rs l)cr st:lrr'nrcrllrorogn crrrrcrtcv rtsccl iri ili) [

Bzrlancc with other banks and financial institutionsln Bangladesh (}'.lote 5.1)

Outsidc Brngladcsh $ote 5.2)

I nsidc B:rrrglacle slr(lrrrrcnt account

.lrrrara lltrrk l.,inrircd - lioru'i.qn l:xcharrgc Blrnchlslarni []ank l3angladcsh l,irnitcdSonali lJauk l-irnitcd'i'he'1'rtrst Bank l-imitcdBrac Ilanl< I-imitcd

Standlrd Chartered Bank

NIrrd:rruba saving dcpositI )lrali,t llanl< l,irnircd

l'r'irnc thrrk l.inrircd

IVI rrduraba Tenn deposit:S<,ciirl Islanri Bank Lirnited

Tenn depositl(-ll lslarrric IJauk l,irnitcdt.vation;rl Ilanl< of l)rrkistau

Ilutu rl'l rrrsr lJ;rnl< i.irrrirctl

.\ll l|:Lr:li Lirnitctl

5.2 Outsidellangl,rdcshCrrrrent itccount

Standurd Chartcred Barrl<, Ncrv Yor'rStrnd,rrd (--hartcrcd B:rrrli, Kolliaralirrnli .\lthhh l,i,rritcd. l(rr:rcl:iNeriorral [Jaul< of [)akistan, Nerv Yr>rli

Srrnd;rtd Clrarrcrcd Blrrli., Lorrdon

St:u:Clrd Charrcrcd B:rrrk, Fraukfurt(iomrncrz banl<, Frrnl<furt

I Iongkong and Shanghri llanking Corporatiorr, Ncrv YorkLJniorr I)e I3arrqucs r\rrbcs I.)'l [;rlnclises.lup:trr

[ )crails arc slrorvn in ..\r)rlcxur'c-(.

b-tvc

a0l.lT.rkr

t] 4,17 5,125

380,673,01 n

206,797,995

69,7')r.),{t.l?

21 i,5')6,e.r(,c)1) )gi )la

373,703,776 380,673,010

1,498,937,433 t,OC5,OCO,OZZ

11,2(,3,508 43,046,1 38

----U10,?qgfjl- ----Uqg:196'8.!9-

24.i5

:t,rls1

1 69,555,1 00

373,103,77 6

203,548,676

38,1 r9,12.1

334,934.,1;2

5.951

27 ,5 t6

13,261

23,668

4,050,335

6, I 92,985

10,313,747

.12.J93

270.14 8

303,3.t1

400,000,000

400,000,000

2,790,3,15

850,0r10.000Iti,5l0.0{1{)

l5;,0.20,0(i0

6,629

28,21 1

13,8.15

17,209

3,08i,366

5,8 r 6,1 60

8,9(r5,440

) r,0 /ti

26t 't

3g

298,8 17

350,000,000

35o,0oo,ooo

5,?9(r,,t I 5

70t),0r)0,0,)0

1,088,320,3{5

1,499,937,433

705,796,115

1,,065,060,6'lZ

29.512.631

-s,1i u,27 6

7l 1.8r9

4,3 S3.5 67

r05.8-+6

u3,480

702,114

25,709

.16,55 1,0 r1

j,,r I 9,.1.10

7rx,,llr)l

r,6:9, I 64

63,8 +3

620,1 70

r5,709

41,263,508 43,0-t6,138

5.3 Maturiry-u'isc groupings of bal:rnce rvith othcr banks andfinancial institutions

On dcnrand

Not m()rc than 3 rnonths

iUorc dran 3 monrhs but lcss rhan 1 vcar

ir{orc tlrarr I vcar but lcss th;ru 5 ycars

\loro rhan 5 rcars

6 Vlonev ilt cxll nnd on short notice

7 Inve stmcntsGovernment securiticsBarrghdcsh Bank bills'l'rcasurv bills l'll rl''l'rcasLrrv bills l-l I NI'li'casulv l;onds Iil jf'l'rcasuryboodsIIINI

l)r'izc bonds

Others (Notc-7.1,3)

7.1 Invcstnrcnts classified as per Bangladesh Bank CirctrlarI Ickl-firr-rradirrg (l tFt) sectrritres '.r-orc-7.1.1)

I lelcl-rt:-uraturity (l IT\l) sccuritics (Note-7.1.2)()rhcrs $lorc-7.1.3)

7.1.1 I{eld-for-trading (FIFT) securitiesBtnglaclcsh ll:rnli billI'r:casurv bills'licasrrrv l;orrrls

I)r'ize t:r,ntls

7.1.2 FI eld- to-rn atrr rity (HTNI) sectr ri ti cs

1'reasLrry bills'l'reasury bonds

Iiscr:1lt orrc tr'cilsulv lrorrcl lrnorrnring '['akir ]55,8t10.0t10, rhclJrurli tor cal)itill prlrp()su.

7.1.3 Othcrs(lorlrncrcial P'lpcr - N{t Ccurcrrt F:rctory

7.2 Maturity *'isc groupings of invcstrnentlicprrlablc C)n dcnrlnd)iot rrrr,rc rltart 3 rnor:ths

\lrrrc rlrtrr 3 rnorrtlts l)ut nor ot()r.(.lhrrr 1 vu:rr

\lorc rltarr 1 ycar lrtrr rtor nt()ru llr;rrr 5 \,crrrs

\lorc rhan 5 lcats

___lc!r9!2it_ ____u9!:pq!.i9_

20 15

'f al<rr

51,,577 ,255400,303,31 1

1,088,320,3+5

20 l4T:rka

52,01 r ,578

350,298,8 I 7

705,796,415

2, l l t,8s7.B81

4.3.t0,966.564

qe,300

6,754,943,745

200,000,000

200,000,000

__6es!f!]lll_

2,+ l],977. tS l

4,1,t0,9(>6.564

200,000,000

__69:191]ll2_

2.-l I -3,887,8ii 1

ti9,30()

__243_21!81_

4,3,10,966.564

_1119p!!J!1_llrrrvc I{'[,\[ st'crrrirics rrrc

1 65,522,58 1

961 ,816,,- 62

I,78+,5::.1,2rr8

3,223,3;3,16(,

l0,2rX)

6,135,25'1 ,577

6,133,257,5'17

1,95r),08:',() l1)

-1,185,1 /1r,528

___$3i]!_;57J_

l 65,522,58 I

r,78 r,55-+,16u

I i),li)0

__t2iq9e7.&2_

961 ,816,162

3,223,353,766

::11!i,!9dllicrr rvirh I)anglarlcsh

200,000,000

__?99{99:999_

u9.100

2r)0.000.Crj0

lll,ll5.7l()4,817,6 13,743

1 ,81 6,1 24,932

---!f:!f43ll2-'

__*-:__

10,200

I 8().6 +2.2 /()

r.l55,ll] l ,7(r6

2,401 ,605,1;72,297,617,IJrt4

---!filznilJ-

2_!_15

Taka20t4Taka

Loans and advances/investmentsl.o:rr:s, cash crcdir, ovcrdrairs erc./'Irrvcsrrncnts (Norc 3.1)

Ilills prrrch:rsccl arrd discounred (Norc 8.1{))

i\lso rcfcr ro notcs 8.2 ro 8.9 arrd 8.1 1 frrr furrher anah.sis, classificariorrrnaturiq' rvisc grouping, crc.

8.1 Loans, cash credit, overdrafts ctc./lnvestmenrsIn Bangladesh

Conventional Banking(ltrrrcrtt finartcc'l'crnr firrarrcc

I):lInrcfl is atirirrst l)ocLrntcrrts (l)r\I))Sr,rfl'loan

L()ar) ill{ilinst rrust rccerl)rs

Islarnic Bankingi\lorabaha (l.,PO)'l'rust receipts

Financc r\gair:st lbrcigrr BillIIorrbalt'l merrLrll

Stlit rnorablha

Olrtside Barrgladcsh

8.2 Maturiq-u'isc grouping of loans and advances/invcstmen(sItepayablc C)n dcrnrncl

N"ot nrorc rlran 3 nrontlrs

I,lorc tira:r 3 rnorrtlrs bur n()t nl()rc rlrart 1 r,car

l\lr,rc tltlrr 1 rcrr hrrr n()r nr{)rc tlrrn 5 r lrrr.i\[r,rc 'i hrtrt 5 t crrs

7,+13,818,028 7,i,45.14),16{r

344,6t)1,21)4 +63,t37,8t+

_J15 8 lE_,2s2 _ ___liquqq{Lprr>r'isir>rr ri:r k>:rrrs ancl arlvrrrrces/ rnvcstrlcrrrs,arrd

2,3)1 ,542,9242,3 5(r,8.1 1 ,7

(r8

2-t,641.2) t-

.1,(!6 0,966

17,1 77,8,91

2,815.1tto,ri.16

1,61 5,4r8,.t i(,

4,8 34,0.+'r

26,:r38,ll.l I

4,830,267,836

2,447,552,063

7 t,81,2,999

19,3 5 5.667

5,053,916

19,;7 5.5.t 7

2,583,550,192

7,413,818,028

4,462,252,144

2,357,868,9tt7

80.26 3,298

49,1 69,8()(,

40.76 i ,8 tS

51,826,47 t-

2,582,890,4t67 ,045,142,560_

__u!d1qp?q_

67,531,51 8

774,tr80,931

5,6 r )6,jj 7,6 23

I,t B r,383,91.)9

1 25,388,232

_J133,42s2n_

_J_045142;60_

1 ,17r.900,{)()l

1 ,-t?7 ,?.90,1 12

,+, I j2,(i7(i,2s i

i69.(,19,tllili

8.3 Loans and advances on the basis ofsignificant concentration

/\dvanccs to (lhicf cxccurivc. orlrer Senior cxccutivcs lnd otlrcr Officcr.sIrrdrrsrrirti lolns antl atlvrrnccs

8"1 l-oatrs zrrttl advattces :,-llorved to cach custonrer cxccecting-l070 of llunk's total capital

'iilral outsrendin.g atn()unt to such cusrorncrs rr crrd of rhc vctr (02 Cusroracrs)r\rrr<-xurt oIcl:rssificd loarrs antl advanccs thcrcinivl[castrrcs takerr for rccovely

/...-..\

__1i9&?q9fl1_

,13,836.51 3 59.66(l,5l.r

7,71,1,588,7|9 7,.t48.619,u5(I

7,7'r8,.123,232 7,508,280,374

1,197,881,979 966,448,01 I

Nil NilNot ;\pplicrl:le Nor r\pplical:lc

8..5 Industry-wise classification of loans and

r\gticulturc, forcsrry, hunting and fishir:g

l\ urornobilc .lnd trxnsp( )rtirriorr ctl uilrrngrls

( -hcmical an J ph:rrmrccutrcals(-erncnt

Sug,ar

(.'<lnstrucrion

I ilectrr,nics and clcctrical appliances

I jinancill insriturirlrr

(;a(ments (Krrrr end *rrvcn)

Infonnatron tcchrroklgn' anll tclccornIron and stecl

l:oorwcet and lcathcr garmcrrrs

l)apcr, printirre lnd packag5ing

l)ou er.r'cl,icrricin', gas, wiltcr. sxr)irarr

Wlrolcsllc arrd rcail rladc

l rxl;orts anci inrporrs

l ransport, sromgc antl c()nlnunicadon

1'extile, y:rrn and spinning

Scrviccs

Orhers

[)hal<a [)ivisiorr()hittagong I)ivisionSvlhct l)ivisir:rr

8.7 Grotrping ofloans aud advanccs as

Status

Unclassified:Stantlard rncluding staff loarr

Special I'lcnriorr l\ccr>unr (-sNlr\)

CLrssified:

Subsranr la rLl

I)oul>rftrl

lhd or loss

__J1:!,125_2n_ ____-_259, L __Zl!L?8gg1_

advances / invcs tmcn ts2013 2014

oh of ToralLoan

Takaoh of ^f otal

LoanTalqr

2.88%

'.\.16r/c

1.730/o

2.98%0.00%

031%

0.454/o

3.tJi o/o

().()tl%

i.).{i0%

11,.5-tok

2.60%

1.91%

12.8-i02,

.i. ti81/o

3.61o./o

0.260

8.550/o

0.04%

36.75%

l).t)19'o

l). i I9.0

3.939/o

0.670h

0.120k

1.7 3Yo

5.95ozb

r).009 i,

L).ii()c,,0

li.069;

2.630/o

0.09",6

0.riO9'o

1.ioo,h

8.230,b

0.559,b

8.97 o/o

0.04%

40.13%

223,81 1 ,+88

3 5,6 r0,9 I (l

367,0+8,'t 26

230,870,535

26,',t67,411,

3 5,042,3.r6

238,491 ,r- 19

1 ,1 30,57 3,994

201,,406,762

150,471 ,164

99i.267,+21

l0 I ,4()3,8() I

284,420,55-+

?0,122,658

663,27',t,423

2,949,118

2,851 ,43 5,441

70.(r 9l),()ti (r

2+,r147,U0()

195, i5-1,.185

50,540,.126

9,2U9,(r0.1

85,445,1-r I

r 29.6()8,55.t

146. i s6,t l:

1 ,180,99-1,.i0ir

1 97,451,000

5.979,.1tl

;6 2,982.409

6 1 7,972,()r).r

+ I,551,+25

673,71 5,0,r0

3,013,()i)r )

3,013,05(r,076

JtgSr8EZ1_

8.6 Geographical location-wise [oans anrl aclv,.rnces,/invcstrncnts

2013 2014

% of ToralLoarr

Taka 7o oITotalLoan

Taka

79.810/o

2.924,'o

6,19 4,316,307

1 .33i ,6 .10 ,260226.408,665

71.20%

?036%

3.260h

5,67 6,261,9e.1

1,579,246,89r)

l5 2.? 68,4 e0

100.h

pcr classification rules of Bangladesh Ilank2015 2At4

7o of ToralI-oan

93.'t6%

0.029o

93.18%

Taka

7,227,169,200

1,7 60,732'1 ,229,229,937

oh of'lotalLoan

95.14o/o

0.17oio

Taka

7,143,063,79.1

r 3,130,9.r r

7,756,19t1,7259s.3t ,o

0.5(rYo

(t.069/o

6.1t)0,/o

6.82%100.00%

13,8 13,9..)4

1,827,317

180,553,99 I

529,195,301

__Jl:3A252n_

0.0()9'o

{J.029i,

4.67r/o

100.00%

1 ,1 29,76 t

350,955,888

352,08.i,649

_1i!!.,289i21_4.690/o

Y\lC-

8.8 Paniculars ofrequircd provision for loans and advances/investnrents

2015 2014

Base forProvision

RequiredProvision

Base forProvision

RcquiredProvision

Unclassi fierlr\ll unchssifictl ioar:s (orhcr rlran S\lLlotrr,,\gricrrlrtrral Ioarr antl :-pccial

mentiort ir,cc{)unt)

r\gdculrural financc

SIvIE Enancc

Spccial l\lentiorr .,\ccourrt (Si\L-\)

Classil'ied

Subsrrrrdlrr'd

[)oulrttirlllad or krss

Total provision maintainedSurplus provision

20t5'f ukt

?u{'['alca

8.9

.$,8i6.5 I3 59.660,52 I

ffiffiffiru7,229,229,931 73,346,282 7,r53,946,089 70,155,849

T-T$r'L?o3l f---::,,4J-rf T-- ._l| :,izs,zz.rll r.r8e,117ll r,117,8;6ll 5r.i.qlslI lro,or.r,oo+ | | iro,or+,co+ ll zo:,rz:,orz ll :t,:,r2r,u,.,:

I

3{0,814,640 317,368,1,11 204,201,548 203,687,620

_J_,s7!!!!u1_ 3e0,714,423 _l_35!147)6s?_ 2t3,843,46e

438,214,423 509,83q,249

_lu!!,qgg_ ___?1i2esl!9_

Particulars of Ioans and advances/invcsrmentsi) l,oans considercd good irr rcspcct oI rvhic]r rlrc blnking company is fullv

scc u rcrl I

ir) Lorrns considcrcd good agrinst which the barrlong cornpany hokls no sccurirl

r,thcr tlr:rrr tlrc clcbror's pcrsonal ljuxrarrrce;

l,o:rns cclnsidcrctl got>d sccrrrcci l>r' tltc pcrsorral unJcrtakings oI rrtc or ntt)rc

iti) Pxrt;cs irr addition tt> tlte pcrson;rl gu.trxnrce oI rhc dcbtt:r;

iu) i,rxrrrs advcrsc"ly cllssificd; provisio,r nclt mai'rtrincd thetc agrrinsr;

v) l,oans drre by dircctors or officcrs of the barrliing c()mpany or any r>f thcsc

cirhcr sc1.llratcly or loinrly wirlt lnv other pcrson.

, i) Lolrrs tluc fronr conrpanics or firrns irr rvhich drc dirccrors of the l>anl<ing

c()rnpiul): hirve rntcresrs rs dirccrOrs, pirilrcrs <>r rriarr:t1r,irtg il[{crlfS or in thccasc ()f J)rivirtc conrparlres as ntcnrt-.crs:

vii) irl,rxirnLrrn tot:tl iurorillt of .'\tlv,rrrccs irrclurling ternporarf atlvancc nriltlc rraoi' tirnc tluring thc ycrr.r to dircctors or rnan,lgcr's or officcrs o['rhc bar:kinrcornp;u:ics t>r arrr r>f tlrer:t cirhcr scp.trarclv r:r loirrrh s,ith anv othcr persr>n;

viii) N1xxirnrrrn tr:tal :rmount of adr.ances, inch"rding temporary adv.,rnccs griltrcrJdrrring tlrc ycar to thc collrpilnres or 6uns in which rhc dirccrors of thcbanl'i,rg conrpxltv lravc intcresrs as Jrrcctors, pilltncrs or nranalfng agcnts ()r

irt tlrc c:rst, oI prit'irrc compitrlles as rnrrnllcrs

it) l)uc lrtrnr llrrrhrng (-orrrp,rrrres:

1,136,t-03.477

| ,121 ,7 i5

7,r-58,125,232

7.506.69.1,6 l(;

I,585,75s

7,508,2t|0,374

2015

Takn529,195.3{)1

201!+

'I'aka

3 5 2,08 5,(r49x) r\rnclunr of Classificd loarr,/lnvcstment on rvhich lnrcrcsr/l'rofit has trot bccn

cltargcd:

(a) lvlovenrcnt of Classiticci lolns anJ rdv:rnccs( )perrrng l>alancc

lncrcasc/(dccreasc) dtrring thc vear

(,losrng Ir;rlance

ft) l'ror.isirxr l<cpt agairrsr loarr classificd as barj,/loss on tlle datc oI brlancc shucr

(c) Amotrnt of- inrcrcst/profit chargcd in suspcnsc accotl,lt

*i) Loans s'rittcn off- Ctrrrcrtr Ycar- (,rrrntrlarivc to-drtc

. - .'\rnrlrtrtt oI wrilrcrt <,t-[ lo't,ts tor rvitle h irrr s.rit rr'as filctl

8.10 Bills purchascd and discountedllills purchased lncl discourtred excluding trcasury bills:

l)ayablc in Bangladcsh

I)ayablc outsidc Barrgl:rdcsh

t3.11 Irlaturiq'grouping of bills discotrntcd and pulch:tsed

l'rval;lc u'irltrrt I monrlt( )r'cr I monrh but less tltan I mortrlrs

Ovcr 3 nronrlrs but lcss than 6 mr>trrhs

6 nr<lrtrhs ()r mofc

Fixcd assets including premises, furnittrre and fixtures

Cost:litrrnirutc, fixturc antl firrings( )fticc c.priprncnts

Staif ctlrriprncrrrs( )ornptrtcr and rclatccl c(lurpmentsj\krtor vchiclcs

I.caschold improvcrncrtt

Lcss: Accunrulated dcprcciation

liurrrirtrrc, firttrrc antl fittirtus(.) [ticc c.lrriprnenrs

SratT crltrilrrrrcrtts(,ornprrtcr and rclatctl ctluiprncttrs

Nloror vchiclcs

l,caschold improvcrncrrt

Vritterr I)orvn Value

l)crails rre slrorvn in r\nnexrrrc - l).

___: I 4 { 0?_201_ ___1q137, 8]1_

1 17,+55,080 i3l,;92,.r()8

1.11,20 I ,681 17 1 ,546,5.18

83,950,444 I 59,798,858

_J1!491_204_ __l!ll3?C]i_

f +lf,rz,r-JiI s:.2e5.7ea I

I r r,;,,,, II toz,;;o.s-to I

I :s,oa r ,n,i,, I

I or,s+q,rcq I

309,393,040

fJJ.+grl15lI rs,cso,s:,, I

I r-r.;tr,r I

I nr..ror.ru, I

I zo.lr,r, r:-i I

I sg.zc,,,r+u I

251,725,47.1

_-_:1_{6U6e._

[ {-\o?rr#lI 51.678.2,15 I

I r l,soo I

I r r:,aoo,zoo I

I zr,::r,mo I

| 72,840,231 I

308,828,699

flr,'10l-ls'lI r r,-<06,6e4

I

l,,,ll:l?llI tu,++o,rgo I

I o,,r:o,oza I

255,584,885

53,243,814

v|'lL-"

l-=rC56A f tfitEr 1

I rzz,ror,oszll (:zo,:sz,-ru:rl529,1 95,301

31 0,61 4,6 64

8t,477,422

35,'107,932

35,101 ,93235,r-07,932

3 i,;(i7,9.12

3-t4,607,204

.t5 2,(i8 5.6.t9

103,1 7 3,(r9?

ti5.948,86?

463,13.7,81"1

2013'f aka

20t4Taka

l0 Others Asscts

10.1 Classific:rtion of othe r asscts

Incomc generating other assets

Non-income generating other assets

Invcstntcr:t in shatcs oIsubsidiaw companics:

- Irr Bangladcsh

- Outsiclc Ilrrnglarlcslr

Sta tiorrcrl', stArnl)s, prirr ting rrta rt ri;rls irt

.\tivartcc rcnt urlcl acivertisctncrrt

lntcrcst acctued r>n invcstmcrtt btlt not

nnd brol<crage rcceit'ablc on shltcs and

incornc rcccivablcs (l.jotc 10.2)

Security de1:osits

Prclimirrary, [ormation and orgartizat-ionll cxpcnscs, rcnovarion,

cicvclopmcnt arrd prcytaid cllpenscs

l]rarrch aditrstrncnt (N-orc I 0.1)

S,.:spcnsc acc()rlnt

Srl vcr

I)ct0rred'l'ax -\sscts

Others $lotc 10.4)

10.2 Incomc /profit reccivables()n'l'. bill, bonds, prcfcrcncc shares, ctc.

l)cposit rvith financiel institutiorr

\hrli up lccciv:tblcs orr l>ill purchascd and discr>trntetl

__-_!!1,632,162_ ___j&q!3,l4_

stocli rtc.

coilcctcd, conrrnission

dcbcnturcs, and orhcr

5.205.278

. 83,12-1.339

239,771,651

1 ,171,1 15

9,r'21,103

(2,96't,.tC)9')

3,238,7 64

326,369,211

665,639,162

__965$39_,162_

223,252,35-i

12,706,755

3.815,539

___23e!l!/51_

.1,60),522

9"1.615,-86

159.219.31 .l

1,t71,116

10.195,19ti

(1,31 1.30-ii

268.478, I 1 7

534,003,748

____i]!gaftq_

147, l.l).8,+5.1.87 2,778

7,210.691

159,2.19,3'.14

10.3 Branch adjustment ---A967-/09L -ii!r]9i);\ll inter branch rcconciliation havc becn prcPercd up to l)(:ccrnbcr 31,2015.'l'hcrc wcrc no signilictrrtt urr

respr:rrclcd itcms ourstanding ior morc than 3 nrtrnrhs.

10.4 Others( )onrpcnsrtion rcccivllllcSh()rt tciln rccr:ivlblc - acc()Unt nra:ntcnitncc Ic'cs

Inta,rgiblc assct - S()t-r\L,rrc (Notc I0.4.I)

Nct of profit t>u Nlr>rel>aha

,\dv'lncc incornc tex $,lr>tc 10.4.2)

l{cccivablc [rt>rn hcacl officc

llcccivablc from tlangladcsh Banl<

l\'[iscclla ncr.,us

10.4.1 Intangiblc asset - Sofnvare

Cost

Ihlarrcr.' nr 1 Januaq. \ cc1 uisi ri, rns

llalancc at 3l Dcccrnber

326,369,271 268,4'18,71'l

21,173,273 27.111.213

2,29(t,125

3,866,i53

(97,438,290)

381,902, l 70

30,199.792

+,698,t)7 6

223.8+5

2,115,239

7,965,91.1

(10,+.287,220)

330,253,431

30,799.792

1.630.951r

27,173,273 27,1'73,273

35

Arnortiza tion and impairment losscsllalance ai l .Jarruln,\rrrorrization frrr thc ycar

Balancc at 31 December

Carrying amountsBalance at 31 Decembcr

10..1.2 Advance income rax

Advance taxllalancc as tt l.f arrr-rary'

.\tlcl: l'rirtl clutirrg rllc yctr

Lcss: Ad;usrrncnts macie during thc vcarllalarrcc as 1rr 31 Deccmbcr

1l Borrowings from other banks, financial institutions and agcntsIn Bangladcsl: Q.Jotc-1 1,1)( )utsicit llarrgladcslr

ll.1 In Ilangladesh()a)l bolrow'ing $lotc-1 1.2)'fcrrn l:or:rorving (Note- 1 1.3)

71.2 Call borrorvingIlasic }l:rrrl< l.inritcd

.'['hc l)r'cnricr lhnl< ].irnircdI lil(. Il:rnl< l,imitt:d()oc Bloli Lirnircd

Sorrthcast Banl< I-imiredl)utch-llangla llank Ltd.

11.3 'f crn'r borrorvingOnc Barrli LirnitcdI Fl(l B:rrrli Linrirctlj iasrcrrr Ilarrk l.inrirccl

23,296,920

3,886,353 7.963.974

2075'f ake

19,207,3-59

z0t4

l a-ka

I l.()6(),2 | 6

. .;, 13lt,143

19,207,359

.130.253,t.tr

225,-15-+,90.'

555,.:08,3+4

173,806,1 r-4

20r.367.50 \

l2(r.Bt]5.93.1

330,253,4-jl

381,902,170 330,253,437

4(r0,000,000 800.000.000

460,000,000 800,000,000

+60,000,000

460,000,000

r 60,000,000

100,000,000

200,000,000

____9u99.9!9_

600,000.000

200,000.000

____q4,000,w9_

I 50.000.00()

30u.0i)0.(x.)0

100.000.()0()

50,000,000

_!9q!g!.900 ,

2( v).0i)0.0()( )

___:_ ____zqqq!qp9q_'17.4 Secured and Unsecured Borrorvings from other banks, financial

institutions and agcntsSccurcd R<lrrow'ing

Unsccurcd llorrowing 460,000,000 g00,000.000

____{qgqq,gqq_ -*,p-,J,*11.5 Maturity grouping of Borros'ings fronr orhcr banks, financialinstittrtions :rnd agcnrsl{e1::rvablc on dcnrand

I(e1:ayrl>lc rvithin i nronthOver i nronth but within 6 nronths()ver 6 nronths but rvithin 1 ycar

Ovcr 1 ycar but within 5 1,cars()vcr 5 1'cars bur u,ithin 10 r,cars'l 0 r'cars (,r' r'n()l c

460,000,000 800.000.000

i6

12 Dcposits and OtherAccountsCurrent/,\l-rvadccah curicnt acc()unrs and othcr irccounrsllills peyrblc

Savir:gs banl</lr{udaraba savings l:aok dcposirsI rlred dcposits/ IVludaraba fi xed dcposits

72,1, Cvrrcnt/Al-rvadeeah current accounts ancl othcr acc()untsOurlcrrr/ i\l-rvadeeah cu rrenr dcposirsi\llalah l(arobar Currcrrt .\ccorrnr (,\KO)[rr.rrcigr: currencv dcposits

Surrdry dcpr>sits Q'Jotc 12.5)

12.2 Bills payablc

I):u'r:rcnt oldcr - lnsiclc Bangllclcslr

l)cnttrrd drafr plvablc - ()ursiCc llarrgladcslr

Llrrclairnccl l)D/'l'l'll'() - [rrsiJc Ii:rngladcsh

tlnciairrrcrt l)t)/'l'fl1,( ) - Oirtsitlt. lJanglaricsh

12.3 Savings bank/Mudaraba savings bank depositsSavirrgs cleposits

i\{udaraba lioyal l)ro fi t clcposirs

;\lfhl:rh Slvings l)lur: (,\S)))

Spt:cial Noticc [)c1>osirs (SNl)),\ lialalr Sllary,\ccrrunr (r\S,\).\l[ahh [{ising Srar (,\ltS).\lfalah prcmiurn l)lus (r\l)l))N{onthly l)rcnriurn Dcposit

12.4 Fixcd deposits/Mudaraba fixed dcposits| ;ixc<l l)cposir (fil)l{)lrlLitl:rr,rirrr 'lclr:: I)c1rosrr t\tI i)R)

12.5 Sundry depositsIt'largin Accor.rnts -

Iv{argin Accounts -

Orlrcrs

Local Currcrrcy

Foreign Currcncv

12.(i llcarer Certificatcs of Deposit

72.1 OthuDeposits

12.8 Deposits from banks and othersInter-banl< dcposits Note I2.8.1)C)thcr deposits

d{ e-

6,392,318,337 5,596,i26,127

2015'faka

jl60,000,000

l, r88,()93,260

t05,269,,i73,448,700,78s

6,392,348,337

__1111111122_

78r,881.076

120,rJ66, I 80' -t66,202,700

1 I 3,143,304

1,499,093,260

98,495, I 98

6,292,'t99

3'l .1,9 I 5

167.805

2014'.[aka

800,000,000

1.030.2r]2.8 16

97,86 1.235

3.027,3(r0.i 39

5,59(t,526,427

9,752,030,677

728.13i.002

86;91 8.r48135,85+.5(r2

7e,071,301_

__!0394?,8{_

95.293,748

1.835.606

560,0()0

l7t.ti8l103,269,.117

788,955,938

)86,270,661

87,45-+,0+2

87;.510,-30r)

1 0,9{2,019

1,25.;,783

191,594,950

606,717,092

3,419,700,795

r,.123,156,7U2

1,969. l9l .7.r.)

9'7,861,233

792,806,60-r

460.312,739

65.781,392

921.618.646

.t.875.852

1.2 I I,t]06

27 6.27 3,092

505,157.008

3,02'1,360,139

3.42r.430.953

2.169.095.+7+

74,689,921

38,453,3835"1.6-ll,752

21,132.552

113,1{3,301 79,074,30,1

______:_

1,211,392,909 872,359,540

10,i90,019,090 8.879.67t,0r?11,134,411,999_ 9,752,030,677

12.8.1. Intcr-bank dcposits

Janrunrt lllnl< Limitetll)ul>;rli llarrl< Linrircdr\lJ llank l.imitedl)rinre Bank t,imitcdlslami llank Ilangladcsh l.imitcdShahjalal Islami Bank l,imitcd'l'hc City Bnnk [.imitcdBenl< ;\sia l,irnitcdl')asterrr Ilarrk l.inritcdi\lodhrrrnoti llank Lirnitcd

12.9 Maturiry grouping of depositsItel>ayablc On dcrnand

l{epayablc within 1 monthOver 1 nr<:rrth bur rvithin 6 monrhs

Ovcr 6 nrr:rrths but rvithin I ycar()vcr i yr.ar but rvitlrin 5 rcars( )vcr 5 icars bur wirhir: I0 r,cars

1 0 ycars ( )r lnorc

13 Other liabilitiesi)rovision for loans ancl advanccs/irrvcstmcnts (Note 13.1)

I)rovision for off-balancc shcet cxposurcs [Notc 13.2)

Inrcrcst suspcr)sc account Q\otc 13.3)

l)rr,visiotr tor taxrrrirln (13..1)

.\ccructl (:xpcrrscs

irttcrcst pal.ablc on lrr>rro'vings |iorc 13.-i)

l)c[crrcd tax liability Q'{orc 13 6)

r\cc()unts payablc - (l-ockcr Sccurirv [)cposit)Wirhholding tax on iorercsr on dcposirs

\\'ithholding tax

Wichhr>lclirrg \r.-\'f- l)rovision trrr audit and consultanct iccs

i)rr,',.isiorr tirr lcavc lerc :tllon ancc

l)alablc r. Shernil B;rnlis I Ic:rtl ()fli c

llxcrsc tltrrt'

SL.lt Chargcs pxvrrl)lc to llnrrslrdcslr llnnl(i\dvancc commissiorr on I-cttcr oIGulrantcc 0./(i)Chlrity iund account

I)rovision for llcbatc oi(lood Borrorvers

iv'lisc clla ncous

2015

Taka

29,82()

1,09.1,755

254, I I 2,588

39,030

+11,013,.+24

107,832,1'/1

59,424,s86

816,52t)

100,000,000

10,000.000

___12.t4,392909_

1,593,362,61 t-

1,079,462,528

4,876,450,000

1,334,340,000

2,550,79(t.79,1

2071'I'aka

.]0.52(r

.37i.17?255,805,569

38,331

25().093.:5()

200.5i7,500

165.478.686

872,359,540

1 . I 28.1.1 1.05 1

I ,30 t.l76,08tr

4.200.05 I .51 iJ

l ,1 90,730.953

1.931 ,728,00:

___]l.ri14122_

,r38,214,.t23

30,61 1 .98081,,+77 ,423

513,577.173

5,296,i98100,59+,62.5

361,000

6,,111 ,6833,966,446

2,189,015

1,225.630

2,9t8,7+279,()52.(r-t5

19.7./.+.1

83,372

1,279,t31

4,583,829

20,000,000

1,381,695

___J,291,821,671_

__21"2p30,617__

509,819.2+9

28,310,56.i

85,918.86it

44t.008,816j.970_546

r0+.671,234

38,0(r I .95 I

282,000

7.7 10,000

4,51 1,419

1.876,?86

936,00()

I ,l (r5.135e

r-9.052.64>

2;726,396

I 33,031

) )-L) )61

[J.779.920

6,006,537

__!2,23698e_

13.1 Provision for loans and advanccs/invcstnrents

General Provisionllalunce as at I Jantrrri:.\dd: l)rovisiorr madc during thc ycar

On gcncral loans and advances/invcstments ctc.

On Special \lenuorr Account (Sl\[,\)

l-css: Provision no longcr rcquircd

Balancc as at 31 December

Specific Provisionl)rcvisirtn hcld bcginning <>i tlt. vcar

I-css: lirully providcd dcbt rvrirtcn o[[,\tlcl: l(ccrlvcrics oitmounts prcviously u'rirtcn off,\cld: S1>ccific provisit>rr for the ycer

l.css: l{ccovcrics and Prorrsions no lr>rrgcr rcqurrcd

Nct (.hargc to l)rofit and Loss .'\ccourtt

Balance as at 31 Deccmber

'f ot:rl provision on loans atrcl advances/invcstnrcnts

13.2 Provisiou for off-balancc sheet exPosures

Ilalancc ar thc l>eginrring of thc ycar

,\dd: l)ro,,'ision maclc durirrg thc year

Lcss: ,\djLrstnrents tnade cluring thc vcrtr

Ilalance at the end of the Year

13,3 Intcrest suspensc accotlnt]Jalance at thc beginning oI tllc vcai

,\cld: r\rnount transfcrted to Intercst Susl;ensc 1\ccotlnt during tlrc

ICllr

I.ess: .\trtourtt rccovcrcd itr Irrtcrcst Strspensc l\cc()unt duting rlrc

vci r

l,css: .\rn,rttt-tt rvrirtcrr otT durirrq rllc !car

llaluncc lt thc end of thc Yeur

13,3.1 Interest/profit strsPe nse and compensation susPense

I ntcrcst/proFrt susPcnsc

Oonrpcnsation susPcnsc

1.J.4 Provisiolr for Taxattonllalarrce as at.Jlntrtr\' 01, 2011

,\dd: l'rovision madc during tirc vcrtr (Norc 3+)

l,ess: ,,\djuscnrcnts made cluring the

llalance as at Dcccrnbcr 31,2014

$-r.q ,

-138,21+,,123 .109,839,249

2015

Taka

70, l 55,8+9

20]4'I'aka

57.01 t.3-t8

392,40 t- ,643

67.072,11,2

19.796,35.5

.L7 )'7 < 't <-

43'rf,$,400

22,5()3.402

1 9,516,492

48,523,t5e

17,91 1,179

11.039,89-r

Ii,i29.32t)

30,611,980 28,310,565

-:

85,94S,868

11,887,)85

O 11? ^r))

1,026. l]881,1'l'1,423 8."r,9'18,8(18::

81,177,123 8.i.9-18,8(:8

87,477,423 85,948,868

7,-,02-1.55 3

9.178.4: I

5;1. I 56

1,1],003,8 l6249,911 ,936

692,950,1 ,12

1r'9,3i3,599

573,5'l'1,173

1a1 a) 1 n/,4:J,.:- r t\,\/r

205.787,75-t

441,008,816

l--3,rri: I fTr,rJtur'l| (zz,so+t | | zt ,zoo I

3,190,433 31.263,843

l 8, l 39,342

73,346,282 70,155,849

r39,683,-+00

35,-707,932

35,245,096

71,352,-123

(39,101,321)

364,868,1{1

28,310,5(r5

20,212,594

{43,008,816

l)r.r,isic,rr t1>r currenr t:rx oi'l'k.2+9.94 1,956 hrts bccn rnade @) 42.5')i, as prcscril>r:d br liirtrtrtct: '\ct li)15 r't

the rcc,unting protit m:tdc try thc Brnk ltier considcring s()nrc oi tlrc',rdd l>acks ro ilrc()n1c arltl tLis;tllowtttccs

,,i expc,rrlirurc n. p", Irlc,r-"'l-rx ()rdrnancc 198-1, lr.rcornc lax l{ttlcs 198-l and in cortrPliartcc .f l)lrit 4(r .i

ll^S i2 "lrrcome Tax".'lhc clctrlils of ycar wisc tax Posiltion is provided in Artncxurc-li

2075

Takrr

16. t l836.5ltl52,916

i,087,205

33,1 57,803

1 6,568, I 55

48,519,941

7 40.268

468,307

100,54 1,679

100,594,625

2014

Tak4

1.1 l35J;.--8512,{9 I

562.131

43.956.239

2l.788,803

3l.8(r0.029

,1J2.5 ,- 3'220.66i

101,160,743

___10!,67]231_

13.5 Profit/interest payablc on deposit

Profi t/intcrest Pxyable on

Spccial notice dcPosit( )ail llorrou'ings

Interest PaYable on

30 deys terrtr dcPosit

90 days tcrrn dePosit

180 davs rcrm dcPosit

360 days tc::In dcPosit

2 veers tct'ltr dcPosit

3 ),cars tcrr:r deprlsir

' .'?

HJ?

lJ.6 l)efcrrctl tax asscts and liabilitics

lJ.6.1 Itecognizcd defcrred tax assets and Iiabilitics

l)eferrcd t,rx assets and liabilided arc artributablc to drc follorving20t5

Assets

i3.238,-64)

Liabilities Net

43,238.-6.+)I iixcd assers

Iinrurlrzucl 11rin on I I'[ \[SucLrrific. ( l rcrsurv ltill)

[.jnrcrlizud grin on I-['l NI

Sccuriucs (['rcasurv l]rrnd)

Unreirlizcd g:rin on I-lF[Sccuriucs (freasurT tsond)

Unrealizcd grin on I-lF1'

Sccurirics ( I'reasury Ilill)

___a;i9J!1) ___923976q

1.].6.2 Irlovenrenr in deferrcd t:rx balances during tlrc vear

Ballncc ar

January 01

(1,899,s1 2)

<)11 t11

ia,696,,rS

47,S9 S

20lll;iscd assets

Unrealizcd grin on I-lTr\{ Sccuriries (frcasury l}ill)Urrrealized grin on I-l'[iU Sccurirics (l'rcasrrry Borrd)

Unrcalizcd grin on l-[lil' Sccuriocs ([ teastrry Bond)

tJnrcrrlizctl grirr orr I'llil'Sc'cunocs ('l rcirsurl' llill)

__lq'oe&L

(1 0,009,589)

14,660,671

15,753

1 ,112,57 4

2,709.913

8,5'19,277

___It!zi-r?r __l2Mqt_ __l!!!lJ!.r_

2011

Assets

(1,899,51 2)

Liabilities

5,21 7,1 l 7

Nel

i1,tt99,51 l)

l.t7 I ll

31,696,443 3.+,696,4+8

47,898 47,893

2013

liixcd assets

Unrcirlizcd grin <ln

lJnrcalizctl gtin on

IJrrrcrlizcd iyrin on

t lrrrt',tlizctl Ftirr orr

F['[N{ Sccurirrcs fl'rcasun, 13iil)

l-['[ \[ Sccunrres il rclsun Boncl)

I ll:l'Sccrrnrics ( I rcr:trrv B,rnJl

I-llil' SectrLrocs i I rcrsrrrr Brll)

I(ccognizcd irrI)rofit and I-oss

(1,33e,2s2)

(5,217,117)

(3+,rr96.a 13)

14 7.898)

__!Egg&)

8,1 10,077

---u1g,qzl-

l{ccolyrized in l}alartcc at

cquiB l)uccr:tber ]l

(3,238,76+)

_______:__ __a,nq,%il

- (1,899.51 l)(9,443,491) 5,217,11i

(1 5,753)

33,523,871 ]1,696,4.rS

(2,662,030) -17,893

__4.103.sw_ __lq{qEt

2015

Taka2014

-f aka

1,42r),62-,.1- 1

181,923,i22

74 Head Office FundFund rcceived from Flead Office and kept *'ith the Bangladesh Bank

14.1 Capital to Risk-rveightcd Asset Ratio (CRAR) of the Bank'['he celcul:rtion of CR:\R h,ts bce n do:rc As pcL I]usci-lll guidclirre

l)cccrnl:cr 21, 2014.

Conrmorr Iiquity 'fier 1 Capital:

l leacl Ottlcc l;und,\ccurnulatcd Profi t Q,oss)

Lcss: llcgulatory Adjustment (Dcfcrrcd'far r\ssct)

Additio.,al Tier 1 Capital:

A) 'I'otal f ier 1 Capital

Ticr 2 Capital:Ccncld I)rcvision (l,iarited ro1..250,'o oIcrcdit lt\VA for 2015.;

llevaluatic>rr rcservc of Governmcnt sccuritics (rvith 20% pluse-irt

dcductions)

B) Totat capital

C) Risk rvcightcd assets (RWA)

Creclit lliskOn-llalancc Shcct

0ff-R:rlartce Shcct

N{aLket Iiisk

Oper:ationel Risk

Total RWA

l)) l{cc1ui,'cd \[inimrrm Conrnron liquin' 'Iicr-1 (.apiral Iiatitr

(1.5clo ol thc total liWr\)l-i) licquircd 'ficr 1 Capital (5.5?6 olli\l'.\) (201+: 570)

1;1 licqr.rircd total capital (10% of lt\\,A)

C) N,lioirnurn capitrl rcquircn:cnt

Requircd capital (highcr of F & G)

Strrplus (ll-G)

Capital to Risl<-Weightcd Asscts Ratio:

Orr (lonurton Liquitl''l icr 1 0lpirll rgeirtst strnclarcl of rninimurn 'l 59zi

()n'l.'icr 1 ():r1>iral - agninsr srertclerd of orinirnunr 5.5010, (201'{: 5%\()r: 'l'icr 2 (.rpir;rl

()n roral caJriral - against staudartl oi nrininrum 109b

___!,423,010 J o!_ ___4,420.,6n,1?]_

[)cccrnl;cr 3014 vidc BllPl) (]irculrrr no. 'l 8 clarecl

1,+23,0 10,70 +

503,7 65,2t1

3,23S,764

4,923,537,157 4,602,550,793

{,9:3,517,1 5 t

90,8S3,500

28,060,6r 6

f---_l-1,602,550,7r3

93,466,.r r1

.15,075,7'0

118,944,116 133,542,184

5,012,487,267 4,736,092,977

8,506,218,283

425.31 0,.) r 4

42i.310,91+

850,621 ,8lE

+,000,000,000 1.1)00,000,tO(r

4,000,000,000 4,000,000,000

1,012,481,267 736,092,9i'l

54 05%

54.0 5o,ir

l.i 1 ');

55.35n,o

5r. l 1,;1.5-0'b

5;.689i

f 6jx3-$e,r5tl f lorrsnrL.lrlI r,zzr,tqoJc+ll rro,roi,ru:l

1,270,680,()16

478,266,151

1,359,860,355

__-1198,806133_

409,896,291

500,981.359

,103S0'652

,-,1 2 t,325,1 13

-311 ,91 8,5 ?3

1.012,974,51;

15 Other rcserve

Othcr rcserwe arises frr:m the rcvalultion <>f 'freasur:y'bills and boncls (ll[rl'& I-ff]\t) itt accordittrcc uirh rhc l)()S

circulrrr rrrr. 5 d:rtcd 26 \l:rv 2008 rnd I)()S(Sl{) 1153i120,/?010 darcd 8 Dcccmbcr 2010.'lhc tax eflccts on rcvaltt:triorr

qain arc nrcasurccl ancl rec(,l4lizcd ir'. thc financial statcmctrts as pcr ll.'\S I2: Ittcornc'l'axcs.

IVlovcment in Other Rcserve during the year

2015

Tal<a

I)efclrcd rex

liabilirics

2014

Taka

Ncr lJal;rrrcc ar

Dcccnrbcr 3lBalancc at

Januaw 01

(r\djustrnenQ/ lJalance at

I rallster(cd, -."'-'l---- I)ccernbcr 3l

durrng the year

2015'frcrsury bills - lL't'Nt'[-r'citsrrn borrrls - I-l l'i\'['frcasunbonds-I]l:I'frcasury bill - I'lt'*l'

2014

I'rcrsun' bills - I{'fitl-frctsurv bor:ds - FI I'NI

['r'clsuri br,rrds - LIIfI''Ir'cusun bill- I IIrl'

21 ,71 9,061

r5,753

15,6+1,991

2,77 4,7 3:\)

--19,1nh19-

34,.+95,556

37,066

3,l 61 ,932

8,+81 ,63 i

_16,r7gl_

(21 ,- 19.063)

(rs.7s3)

212,394,9.t2

(2,774,730)

258,{)36,936 258,0.r6,.)i6

187,885,396 258,036,936

(22,219,981)

(37,066)

r6.003.936

(8,368.9{J3)

12.215,569

r9.1 65,86u

t t2,ic0

9,443,494

15,153

(31.523,87.1)

2,562,030

258,036,936

21 .'r 19.063

r 5,753

4;,6,1'l .r9,11 -:J I irr

15,377,900 91,5-:4,137 (21,102,59'7)

Strrplus in Profit and Loss AccountIhlance as rtJrnuary 01

l)roEt Transfcr to I Iead Offrcc

Nct/(loss)profit for thc vcirr

llala:rcc as irt l)cccmbcr 3'l

I-ctters of grrarantees(llaims lorllicd rvith rhc B:rrrli conrlrattv not rccolglizcd ls loarr

\loney tor which thc lienl< is contiogcntly liablc in rcspcct of gtraralrtces

issued fin'orirrg:

I)ircctorsGovcrnmclttllrnl<s auil r:thcr financial irtstiiutir>tts

( ) rhcrs

Irrer'<lcablc letters of crcditUsarrcc

Sight

Inconrc statcmentIncorncI ntelcst, tliscotrnt arrd sinrilar inc,>rnc

l)iliJ,:rt,l irrcttrlc

licc. conrrnissi<>n arrt! brokcr'agc

C.rins lcss Losscs rlisirtg trom dcalirrg securities

G:rins lcss I-osses arising Lom i,rvcstnrcttt securitics

Crins less l-osscs arising tiom clctling in tbreigr curretrcics

Irrcc>me [r<lnt non-banking assets

'18t,923,322

(46,790,1 10)

70,151,540

76

1.7

18

79

(4.1,795,1 l3)

368.631 ,999 226,71 8, 135

503,765,211 181,923,322

321,115,471 58 5,08i,7l{

321,113,471 585,085,744

253,U79,023 29-3.046,610

426,633,883 350,508,530

680,512,906 643,555,160

1 ,.197.652,061

35,0ti2,741

1(r4,678

87,090,93-+

l,5lS.5(:ti,?8?

28.10ri,0i6

35,610,201

9 t.ti47,631

2015

Taka31 ,843,895

2014

Talca

29,914,9.+9Orhcr opcrating incomc

l)r'ofit lcss Losscs orr intcrcst rarc chllrgcs

Expensesinrercst, rcc and conirnissi,>lt

l,t>sses on lt>ans arrtl advar:cr:s

;\dministrarivc expclrses

Other opcrating expcnses

l)cprcci:rrion on bankirtg asscts

Inconre over expenditurc

Intcrcst income/profi t on invcstincttts

Intcrcst t>n loans aud advances(lurrertt finance'fcrnr firtance'frust reccipt

I{ousc kr'.rn - Staff

Pcrsonal loan - Staff

Sclfliquidaring car loan- Staff

Iirrrill: llili I)iscounr

l,r,cal bill clrscourttcd

Share of profit fronr finirncing and discotrnting

Nlurabaha-Staff

Nlorabaha l:inancing - LPO

l)r'oFrt on bill discouuted

\lorabaha incorne PAI)Nlorabche ir:comc trust rccciPt

Intcrcst tln Placen:ents tvith Banks

ll)(crcst fr()r)) crtll nrt,ttcv

lntcrcst fror:t dc1'rosits witlr Llanks

Intercst paid/profit shared on deposits and borrowings etc.

Intcrcst on deposits

SaYing's eccottnf

l{ovtl 1>r<,fi t tlcpt>sit

S|cciltl rt,rt:cc dcl:osit'[i:rnr clt posit

Prol-rt shared on Modaraba Deposit

ir{odarab:r Saviugs Dcposit

i\[odaraba roval ptofit deposit

Spccial rxrticc dcposit

irlodarabe tcrm dcJrosit

Intcrest on borrorvings

Inrcrcst piriJ on bt>rrorvirrgs

Irrtcr-cst priJ on llePo

1,724,3!,627

--8;.113.-; r l

37(t,660,691

35,7r 5,900

19,921 ,83r-

7,217,521,9+0

_!96q4681_

175,2-8.1r9

17 2,7 3?,532

31,809,92;

285.3i 3

20;,505

678.6(; I

,t80,992,25 7

2,83;,r196

201,788,389

32,589,036

I 5,804,557

253,019,878

79.86.1. ll{12,651 ,36i92,515,791

826,527,926

46.038, lrC1i.205,r) lC,

.168,.) r l

.11.r,311,r)12

384,053,409

1 86.5i1

I 8,765,367

29,620,8'r6

206,569,0 l0

23'r,147,774

8l.1tiS,.lr95,783,8 l r

36,588,649 86,972,320

612,119,499 '126,173,503::

1,65 1,834,309

6l 2,1 I 9,499

.106,1 13,31.+

53,630,257

1 8,1 82,819

1,090,045,889

__?6V88,420_

20

2t

271),7+ti,800

i 5 t ,663,685I 1,037,559

165,633

193,3(r0

8.291 ,624

616,t491

112,7 t7 ,45')

2,534,303

187,901 ,545

20,833,211

11,583

16,197,241

22'1,177,889

96.tis(r,llL')

32.81-,370

129,697,580

___J99,892924_

54,658,695

l1.333,13 Ijl 1.639

29 I ,r151 ,25S

360,134,726

1,312,'7 68

18,695,442

36,618,r'39

158.689,175

215,3'',16,724

36,5 S 8,6:19

22 Investmcnt incomcirlarl<-up on Scnior Sccurcd bonds

Dividend incomc or: ;;rete rcr:cc share

Oapital grin on s,rlc ol sh:rcs

l)iscount orr trcasury billi\lark-up oll trcasurv bonds

i\[ark-up on (.omrncrcial Pa1:er

Tradirrg gain on treasuryroilJs

T::adirrg grin on llangladcsh Govt. Trc-asury l)onds

L<>ss on revaluation of BGB FIIrf sccurities

l)rofit/(l.oss) on rcvrluation of 'l'-'oill F{lrfCapitrl g'ain orr treasury bills arrd llanghdesh (iovt.

Intelcst p:rid on Scctrrirics

Cornmission, exchange and brokeragcllrok cragc

[:ccs, cornnrissi<>n etc.

lixchangc earninlp

Other operating incomcScn,ice clrlrgcs rccovcrcd

l-ocl<cr renr

l)<icurncnt chargcs

Chccltre rcturn charges

Gain on disposal of 6xcd asscts

Credit/dcbit card fecs

()hargcs on docunrcntlry crcdit

Couricr clurges rect>vcrctl(lhctluc bool< cl.rargcs recovcrctl

Orhcr- incornc

Salarics and allowancesllasic salary

Housing rllowancc(lr>nvcvarrcc allow;rrtcc

l.clvc irrrc rrllorvancc

Otlrql alL ru,artccs

Cirr r]lotv;trrcc - Seli liquici:rrirrs c:rr loa,r

licstival bouus

l)crf<rrrlaucc bonus'fhc Bank's contribution to providcrrt furrd

GratuirylJusirrcss Dcvclopmcnr O fflrcer s.rlarv

Grorrp irrsurarrcc

Rent, talxcs, insurance, electricin- etc.

l{cltt, rarcs .rnd taxcs

I ns trrancc

Cleaning arrd rnlintcnarrcc

IllccrLiciw rrrd Iighting

'l'rcastrrv Ilorrds

2015

Taka

4< nqo 1 "2732,792,718

36,108,333

164,618

(1 05,s1 8,1 96)

(r 0,318,866)

145,020,209

(l 45,684,233)

____aT?1,811_

35,082,741

87,090,934

___ 1n,fi]_,67i_

t,+!)1,02 I

9,.+78

3(tA,921

1,733,52')

965,6i168,7 62

1.597,rJ61

735,283

2 t,815,363

___1L!1192i_

. 89,5 87,441

35,825,060

8,2.18,822

l 1,663,88+

12.21.t,(,36

1 ,6?.1,153

20,361 ,9297,14S,1 22

8.148,277

1,413,720

3,6i1,4412,336,885

20t4'Iaka

3,037,500

112,171,(rll

53 t,7"4,39C

(?'680,9+7)

43,291,1,+8

(9,2a1 ,5 t-9)

6,1,66,320

68,1 38,61 9

(ie.0sci,00e'

----qq$!919,3-

28,408,056

91,841 ,634

:1?9l:Ie9_

| ,1- 1rO

ti,.l92

303,223

1,060,759

82,889rQJ 711

7 5 8,3t6

2;,175, r 58

____2U9A2_

85,71;, I 66

3+,289, 181.994,125

r 1.002,683

(r.50(>.0:7

'.obo.d I

20.36:,e18

i.1)9.)(,c.t7,839,2: I

1,551,568) do? ron

2,285,50 1

23

21

23

26

211,304,373

93,7i,9,280

8.708,928

18,266,573

11 ,7 33,4 r- 4

_____re3,2e9lu_

8a),7 10.9;2

6.653,1()5

19,964,5r I

I I ,977,0t)l

'- _:\'-

,/ -. -'r'.

H7f ','."'

____132,418 2s:__ ___llUql3e_

29

2'7 Legal expcnses

I-egal fecs and chargcs

Consultancv fccs

28 Postagc, stamp, tclecornmunication etc.

l)osrlge attd cottricrs

lilcctlorric mail and on-lirrc connectivin''fclcgrarn. lhx, tclc x, S\\/l l''l' a nrl itltcrrlcr chargc

fclcl>ltonc chargcs

Stationery, printing, advertiscments etc''[':rble strtir,ncrvllooks and pcriodicirls

l)rir:tirrg stxtioncr)'

Computer statiotrcry

l)ublicit.,' irrttl advertiscmcnt

Cotrntry Hcad's salary and allowanccs

llasrc saian'

Spccill allowtncci,cave farc :rilowanccjicstival bonus

l)crf<>traancc b<>nus

'fhc Bank's contribution to providertt fur:d(lar allowancc-Self liquiderirrg clr loalr

(-lr..rruin

Dcprcciation and repair of Llank's asscts

Dcprcciation of Banl<'s Asscts

llurnirure, txrure 'arrd tittings

Oft-rcc equipr:rertrs

Computer and releted cqr.ripmenrs

N{oror vehiclcs

l.,c:rscirolcl inrprovetncnt

Ilep.rir to Ilank's Asscts

I itrnrirure, lixrurc :rncl tittrngs

l{cntcrj 1:r'crlriscs() fticc cquiprrrents

Computer rnaintcnartcc

Nlotor vehiclcs

32 Othcr espcnses

l i'l nli cl.lt rgcs, b rol<c rlgc lit ttl cottt nt i ssior t

()lrargcs li>r (.hct1Lrc [Jooli vaulr

\'lcrrrbcrshil> iccs

lfrrtcrr,Iirlo lcll t

Security-fraveling arld conveyancc

Car fucl cxl)enscs(l',rrd ccntrc chargcs

.\rrroltizatit,rt clf soti.v;trc

20't:5

Taka

1,449,336

I ,613,645

___106?f!l_

2,452,489

4,912,008

1,301,495

t ,o . J,o+)

______1gIq€L

1,523,713

:2,9i13,643,?19

534,260

8, I 63,91 5

_____ltf38li1_

9,124,200

3.263,800

1,084,000

2, r 68,000

1,527,500

9i2,1201,020,000

810,350

_____20,590,T10_

2014

Taka

1-71 tl.n)

774, I 80

__Jr47.,1s2_

2,10;,695.1,920,6()8

1,334,0]-j

1,504,-+72

g,g66,7gg

1,757,8 t0

68,393

3,173,S53

27 6,294

5,r15?,5 t6

___-rrJrSlrr:

3.884,20(r

.'1,283,Si]r,

I ,01 4,0r10

2,02S,0i10

9 25.00[,

888..120

1,020,{)r.)Ci

740,3 5(j

___lslgurg_

30

.31

2.601,8',r l1,787,721

5,311,122

2,416,613

3,065,486

18,182,819

1,r1.900

2.6i0.93')

2,(>1i,657

7,45 5,1 3 r

1,043,890

73,907,537

___32,0e935!_

1,632.0+9.1,54.1,7 6.1

r,577,9 5 5

799,7 14

.1.37i,3l5

19,921,837

3;4,5i,l.161,5,i l

.),J+U,.) rJ

5.7 5 5,:03

1,265,r1i4

11,202,625

31,124,162

2,-li2,106

l i0,0001.003,238

4,494,014

I i,053,606

7,568,364

5,643,062

1,791,504

1,0i9,561

I ?r,i ,i)R

120,000

I ,057, t 34

1,180,145

I 2,518,5.r 1

5,1 3U,890

i,.r32. liJ6

I.783,9 l2

5,'l 38.1 14

'fraining

Itent-residcnccl\{cdical expcnses()rhcr t",xpcuses

Provision for loans and advances/investnrents chargcd during thc year

General ProvisionProvision rnade during the vear

C)n gcncral loans and advances/invcstments ctc.

Orr S1>ccial tr[cution ;\ccount (S![A)

Lcss. l)rovision no lrtnqcr rcquirccl

Specific ProvisionSpccitic provisit>n m;rdc dtrring thc lelrIlccoverics and Provisions no lortger recluircd.

Total Provision on loans and advances/investments

Tax cxpcuscs (credit)(]rrrrerrt tirx cxl)cnscs

t)c[crrcti tax (ctedit)

Intcrest rccciptsIntcrcst,/profit (eccivablc as at 1 .lanuxrvIntcrcst/profit accrued durirg the ycar:

Intcrcst on loans and advartccs

Share of profit from firtancingartti tliscourtt

I ntctcsr ()n l)laccrnerlts rvirh ltartl<i

lntelcst,./profit rcccival)lc as ar -J I l)cccorbcr

Intcrcst payments

Intcrcst/profit pavablc as xr 1 JrutuaryInrercstT';:rofit churged du'.irrg the vcar

Inrcrcst <,n dcposit

[)rofit sl.nrcd orr i\[oclarabr l)cposits

Irttcl est ott [:<lrrorvitlgs

Intcrcst/profit prvablc as at 31 f),:ccrrrl:cr

37 Fccs and conrmission reccipts

38 Payrnerrt to cnrployccs

Courrrrl' I Icad's selarics and allorvanccs

S:rlarics lrrd allowarrccs

G raruirl':(lounrry I Icad

I'lrnplove cs

,o

20t4Taka

I,i)).+bo

5.2.19,9()j

5,.t96,1 89

8l,ll(,____47_,6n,473_

3,213,237 3t,236,631(22,801) 2;,20(,

3,190,433 31,263,8 r.3

I S.1 -j9..1 12

3,190,433 13,124,501

201,3

Taka1,,371,72\)

5,910,236

7,314,255

938,291

____u,63!!!l_

33

(39,107 ,327) 47,275,757

_____Gifl!,8e1r ___qq4qq&g_

35,245,096

t+))!,+Z)

248,0r2,61.t

(4 I ,lco,7l -l)

__2o6JjJ2gg_

54,962,09+

199,892,92+

67,072,|219,796,355

305,-8;, iiJ8.1 I 0,r)-l

213,897,831

87,1 58,351

826,52,-,926

34

35

36

i.i-!.962lD1t

--!,814!q-116,981,8-5

726.173)03

-----JiwJ41.-

?0,590,2,-0

2l 1.304,373

(!t 1 0,3s0)

(1,+;3,720)

_____4!,610,573_

___28,{qp,6_

18.783,710

19i.290.921

,:;40,i;0,

(r,s51,568)

____20er821J2_

\,

Hrgi'i, .:

T 441?F,4s5l f- 48o--rrEl

| :zz.+:;,sao | | 25r,ore.s:s I

I 1]e.6er.sso I I 92.srs,7)l I

(112,.316,361)

____ln,s18{ll_

10-1,6r3,23.+

612,119,499

f 36qls4xil f-ts+-iJilu, I

I zr s.l'c.r z* | | 35;.1 4-.7?4 I

I ic,;ss,c+q I I gc.c::.;:c I

r100.5e-1,625) i10.1.6:3,2-14)

______q61e!J9!_ __268$?4_

2013

Taka2014

Taka39 Payrnents to suppliers

Balancc as at 1 JanuaryAccrucd cxpcnscs

Acc()unts payxblc - ()thcrs'

l)rr.:visirlrr lirr audii artcl cortstrltanc\ [:cs

Chargcd during thc ycar

Srariorrcry, prirrring, advcr tisemcnrs crc.

Rent, taxes, insurance, clectricity ctc.

Postagc, stxmp, tclccommunicrrion ctc.

l,eg'il expctrses

Atrditors' fces

Ilrlancc as at 31 Dccenrbcr.\ccrtrcd cxpcr)ses

.\ccorutts 1:rtv;rblc - otitcrs

l)rovisioo ti>r audir and consultrrrtcy lccs

Incomc tax paid

lleccipts from other opcr:ttirrg activitics()tlrcl opcr,rting incr,me

I ixcllrrtgc carninl5lnvcstment inconrc

Cain on disposal oi fixcd assets

Gain on sale of sccutities/sharcs

Payrncnts for other operating actif ities

Itcpairs r>f llanl<'s lsscts

Orhcr cxperrscs

Cr:rruitr':(irtrr:rry I Icad

' l"irnpkr'.,ccs

.\d jus rnrcrrr for lnrr>rtizatir>n o f softu'erc

I\Iovcruent of loans and advanccs/irrvestmcnts to cr,rstolners

lJrlrrrcc as rrt 31 l)ccenrbcr'

IJalancc as ;rt I Janlrarv

Ivlovement of othcr asse ts

(lrrcrcesc)/dccrcasc in othcr assets rvhich arc not considcrcd elssrvhcrc

- Starioncn, sramps, prinrirrg matcrills, ctc.

- i\dv;rocc lcrrt and advcrf iscmcnt

-Sccur'itv dcposits-l)rcImirratl', ftrrmatit>n atitl orilartiz;tri,rrt,tl cxpettsc., rcttor'ttiott,

dcvclrrprrrerrr artd prcpeid cxpcr.lscs

- lJranclr :LcJ justmcnt

- Otlrcrs

;\diustnrcnrs [or-- l)efr:rrcd rax asscts

- .\dverrcc inconre t:rx - nct crf 1:rovisiorr ft;r tax

4,934,721

14t,401,791

225,451,907 126,885,934

[l,,,lrc,s42-] f- ir854I 182.000 | | 128,,)0a

I

| ',ro,ot,o I I s: r , l, ,c I

5,188,546

fl:,q3s-l1i [--r-rJrsB-lI riz,+ra,zss | | na,3os,7ie

I| 10,338,637 I I e,866,7e8 |

| :,ooz,oar | | r,s47,r82 |

I ;53,1s0 | I 553,150 |

160,311,134

l- ,s:,r6j.xjl fl-i.^r-(r9r,, il(il| 1i.+,ooo;l | (28z,orro;l

| (r,zzs,osotl I rqrc,o,ro)l(6,885,748) (.5,188,546)

___-!ffnfg?_ __!r1!usq_

40

4l

42

31,843,895

87,090,931

697,923,815

(1,733,525)

(1 64,678)

______q!2qry1_

I 3.907,537

51,6-10,257

8l 0,350,+,413,720

i.r,079,561)

_____qql?;qi_

7 7iQ.r"( ri)

(7,50r1,2rj0,37.r)

--49{!g:!-

29.91(),9 r9

91,8+7.61a

688,601,053

135,61 0,?il l)

----rJrl!tli-I 1,202,615

1r.69-..I-: S

?.1(),3 50

t,551,568(5,'l 38,1-]11

__i!!iifz_

;.:0[J.2trO, jr,l(6,5 8r).83;,ti;2)

____9U_,444a502_

43

4.1

(5e9,756)

1t .,t92,397

I

,t41,095

(1,.3.r3,896)

(s7,891,1 5r)

(3,238,76+)

5l ,618,733

9;?,0 r5

(28,410,879)'5(r7.3 I -1)

.)./i)./lO

(r,633,s, e)

i15.841.7-;l

12(r,885.914

r--t''E'LtJC

- intangrble assct (Computer Sofrwarc)

- Nct of profit on N{orabaha

Movcment of deposits and other accounts frorn bankslJalancc as rLt 3l I)cccmbcr

llalance as xt 1 .lanuary

46 Illovement of deposits and other accounts from custornersBalarrce as aI 31 l)ccembcrl];rlancc as xt 1 JanuaryI ncrctsc/ (i )ccrcasc)

illovernent of othcr liabiliticslrrcrease/(dccrcase) in othcr li:rbilirics rvhich :trc rI()t c()nsi(lcred clscrvhcrc

- lntclcsr susper]sc account

- Dcfcrrcd tax liabiliry $jote 13.6)

- Withholding tax on irltcrcst on dcposits

- Wirlrho)ding tax

- \{'ithholding Vr\'l'- l)rovisron [r,r lclvc: farc lilouance- l ixcisc tluw- Sl-ll Ch;rrgcs palablc to lhngladcsh []artk

- ,,\clvancc cornrnissi<;n on l,crtcr of Ouarantcc () ,/())- ()harir,v Fund Acc<>unt

- N{isccllmctius

Proccecls lionr sale/redemption of securiticsl)rocecd. frr>rn salc of scc.rritirs(lomrrrcrci:rl l'apcr - i\ll (.crr:cnt Iitctor\'

l,24{,392,909 ti72,359.51C

(872,359,540) t.423.362,567')

___373!1!l6e_ _____14W2!11]_

10,190,019,090 8,879,6,"1,077

(8,879,(,71 ,077) (;,99 I ,365,399)

__],1!t1g4E_ _qqst0sIzg_

2015

Talca(4,079,s61)

6,848,930

____tigqgi_

2014

Taka(5,1 38, l 43,

(9 I ,536,811 )

_____@,49!,0D_

45

47

48

(4,-t71,445)

(38,061,9s 1)

(eez,317)

(544,e7 3)

312,229

t,752,883

i2,4 r8,652)

("re,6se)

(963,1 33)

(4,1 e6,0e 1)

(3,344,755)

____@221_!!L

188.050,01 l(200,0()0,000)

___a$!21%L

8,924,11 4

(347,001)

305,224

396J04

662,r)6-1'52ti,+-8;

14.960

10-i,9(;,1

1838,971)1,13(t,i 52

___12W3U._

99,546.96;

60,000.0110

l)9,546,967

,a-\ytlsj',i\

\ J ;'-i't '-' , n.\ , '.;-'\ '\)..'1.'\-:-/

49

50

Paymcnt for purchase of securiticsl lcld-tor-rr:'.rdinq sccuritics ([ reasuq lkrnd)I Icld-ro-rnuttrrity scctrritics (l'rcasurv llorrd)

Sale of fixed asscts

Sale o[ fixcd rssets

51 General

5l.l Rclatcd par.tics-fransactiorrs *'ith kcy managcnrent personncll(cy nr;rn:rgcmt:nt porsonncl h:u'c rransacrcd u irlr thc llanli during rhe \.car as

I-lousc financc

Czrr firrancc

I(ci mltlrrrl;cnrcnt pcrsonncl compcnsrtiorr for rhe vcar cotr]priscd:Shorr-rcrrl crnplovcr: bencfi rs

l)lovirlcnr tirnd

G raruiq

Other rclatcd party transactionsThere wes no rransacrion rvith the rclatcd party during the rcporting pcriod.

201:5

Taka

(629,333,613)

(1,117,612,1-98)

__!116,e46l1l]-

5,3i2,192

___J,ry$2_

frrl.lorvs:

19,34?326

22,264,287

_____11,696!11_

160,819,290

0,7 65,899

5,498,471

____l4gE,669_

2014'f aka

(t ,1 13,358,3.96)

(2.0e2.093,752)

(3,205,452,148)

28,652,28 t-

25,68 r- ,62 i-

__l1ig9]j_

145,.13(r,375

6,269,5 l35,070,453

_____136!163!_

51.2 Ntrnrbcr of cnrployecs

f (,,[)()tl or al>ovc r,vcrc I 77 i20l a: I 58).

51.3 Highlights on the overall acriviriesI{ighllglrts on the overaU activities oIthc Bank hrvc bccn furnishcd in.\nuexurc -.,\.

51..1 Employce rclated fratrdThcre rvas no fraud occurred/rcportcd to Bangladesh Ilank during rhc year 2015.

51..i Events aftqr the reporting periodi.\orlc.

FIead//r*I of Financc & Admin.

Annexure-A

Bank Alfalah LimitcdBangladesh Operations

Highlights on the overall activitiesas at and for thc ycar endcd Dcccrnbcr 31, 2015

_ .:_:i--.-r^>.

i', r{YC--.',4t.,a.

Partictrlars

Nt>r anplic.rl;lc

-r,420,617,4:1

1.7 36.W2,977

i36.092,911

1 6,551.969,039

9.7i2.010,61-

7.508,2ri0.3j.r

2.83 1.056,39i

4.690/o

506,8r3,681

226.118,435

35 2.0S5,64()

43').6t11.40r)

.1.1E0t

14,8++.465,957

1,709,503,082

\2.,-10i,I 1-n/l.-)j r'

6B$.6r) I .05t

Nor applrcrl.rlc

Nor alrplic,tblc

'fak:r

'fak',r

Taka

Tak',r

Talil'[akrr

'Ia k:r

'faka

'faka

'fakir

'[ak'.r

'[a krr

'fak:r

'feka

'fak:r

'l'a krr

'[akr

'l'imcs Not applicablc

{,423.010,704

5,042,481,267

1,042,181 ,267

18,313,046,521

11,434,111,999

i-,158,1f5,232

3.0(r 1 ,l 9?,990

561,788,420

368,631,999

i29,1e 5,301

3(r4,868,1 41

16.216.115.834

2,1 56,900,673

10.610/"

697.923.S15

\t>t aPlrlicable

Nt:t a1.lplicablc

l)aid-up urpital

Total capital

Capital surplus

Total assets

'otal dcposits

irtal loirns artd advanccsr'illvcstnlcrlrs

I<,ltal corttingcnt liabiiirics and ct.rrnctirrncrtrs

(.rcdit/invcsnncnt dcPosit ratio

l)e rccrltagc of classi Frccl I oans/ invcstmcrl ts agairrs i

krans and advlnccs/investmcnts

ing Pro6t/ProEt beforc provision

(I.oss)/profit aftcr tax and provisiorr

..\nr()u rll <,I classificd loarrsl'irtvcstnrctrts

l)rovisiorrs kcpt against classificd loarrs,liovcstntcilts

l)rovision surplus,/(dc ['cit) :i15irtsr chssi fi cLl ltxtrts/ irtvcstn:cnrs

lost of funcl

Iutcrest carning assets

-itrtcrcst carrring assets

lleturn on invcstrncnt QIOI)

lleruu) ()n asscts Q{O..\) p).\'l ri .\vengc assctsl

lrrcolrrc frrlrtr invcsrntcnt

ti.arnirrgs 1;cr shrrc

Nct incomc per sh:rrc

l)ricc carnirrg ratio

Sl. No. 2015 201,4

1.

2

3

4

5

6

7

8

9

t)

L6

1?

18

19

3tt

li?2

23

10

11

1l1.]

1.t

Ilank Alfalah LimitcdBrugladcsh Operations

I-iquidity Statement

299,593,633

5 I ,577,255

r'i9,300

67,534,538

r 5,003,1 80

400,.101,i11 1,088,320,345

200,(x,().(x)0 111,115,770

774,1180.93r 5,6(\6,331,62:l

9,714,rr)3 255,123,356

Annexure-B

1,10t,00{),(In) 1,400,593,633

- 1,540,200,941

1,U16,124,932 6,954,943,745

125,288,231.07 7,158,425,232

rJ,977.9ri4 53,243,814. 665,639,162

Assets(.ash

IJalance rvith othcr b.rnks rrt..l firraucir.l institutions

i\lorrcv at c:rll anrl on slrr rrl r). ,rrc(,

lnvcstmenLs

l,oans and advanccs / lrl\ cstrll( tlts

Iiiscd asscts includrrr{r l)r'srrlrsus, furrtirurc and 6xturcs

Othcr asscts

Non bankin.q a:;scts

Total assets

LiabilitiesBorrorvings from l3anglaJc>lr lJan]i, othcr bank, linancrrl ulsLrLutrons and agents

Dcposirsl)rovision and othtrr ltalllitr.sTotal IiabiliticsNet liquidiry gap

433,797,906 1,384,908,375 7,060,897,094 6,442,052,005 3,051,391,148 18,373,046,527

4,rt27,61 .1,7+3'I,

I n4,.1tt.1,909

{.1,2(r5,tt-i0

185,7UU,523

.\3.'" \\':& ,-l)

460,('00,000

2,672,825,205 3,277JXX),(XX) 2,933,790,000 2550,796,794

12.873.144 281.111 651,304,318 62e,356,471

460,000,0u)

I I ,434,411,999t,293,821,6?7

t rr-'\\i

3,145,698,349 3,277,287,744 3,58s,0i4,318 3,180,rs3,265 - 13,188,233,676

(2,71r,900,443) (r,892,31936e) 3,qswfi6 3?6r,W8110 3,0s1,3e1,148 s,

5l

(t( ( ( ({ I ((ll (((r1 ({ (i\{ ( (((\( {(((({ t(l(((1((((((

Bauk Arfaratr Limited Annexrtre-c

Bangladcsh OperationsBalancc wirh other banks - Outside Bangladesh (Nostro Accortnts)

rs at Dccember 31, 2015

41,263,508 43,046,138

Name of the BankCurrency

l'yP.

2073 2074

FC AmountExchange

RateEquivalent

^ftke FC AmorrnrExchange

RateEquivalent

Taka

Standrrcl Chartcrcd Bank, Nerv York USD 1 ,15,909.27 78.51 29.512.637 4(;9,2tt8.'15 77.95 36,581,0r 1

Srandrrcl Charrcrcd lJank, Kolkata ACUI) 69,268.58 7 t].51 5,438,216 43,867.09 17.95 3,419,440

Brnk ;\lfalah l-imtcd, Katachi ACUD 9,067.37 ?r|.51 7',t7,871) 9,067.3? 77.95 ?06,801

Narional Ilank of Pakisttn, New York USI) 55,834.50 78.51 4,383,5(r7

Sranclarcl (lh:rrterccl lJank, l-ondon (;tlP 3,189.65 1l(r.30 405,846 "t3,413.01 120.92 1,629,164

Srand:rrd Charrcrcci Ilank, Iirankfurt l_-:t.l R( ) 972.62 85.83 83,480 (t7 4-09 94.71 63,843

(iommcrz bank, Irranklirrr EURo {J,180.29 85.83 702,114 6,548.09 94.11 620,110

I Iong]iooq lnd Shanglrli Ilanking Corporation Nt'.w Yor tisDUnion De llanques -{rabes Ef FrancaisesJapan YEN 39,5s3.00 0.6 5 25,709 39,553.00 0.(r5 25,709

lirntiturc, fixrtrrc lrrti fittirt1.ls

( )ffice ctluipmcnts

Stitff cquiJ)rr1cllts(.omputcr and rclatcd cqtril;rncr

M<ltrlr vclriclcs

l-caschold impr<lvcmcrtt

I 3,500

5,171,250 (51,500) 112,890,290

- (1 1 ,334,41 0) 24 ,321 ,190

4.i,802,413

53,295,798

1 3,500

1 07,770,540

35,66 1 ,600

44,802,473

53,295,198

13,500

107,770,5r10

35,661,(,()0

216,t\to

3,341,997

Ba:rk Alfalah LirnitedBangladesh OPt:rations

Sctredrrle of fixed asscts including premises, furnilure and fixturcs

as at Deccmber 31, 2015

Annexure-f)

36,101 ,259 8,977 ,9tt4

(2,9r,1,550) 41,506,694 12,i7i'551I 3,5tx)

(21 ,445) 99,187,01 8 13,703,272

33,499,-+45 11,302,988

39,680,520 13,615,?78

{ 5,079,2.13

(2,961,550) s3,678,245

33,499,445 2,601,814

39,680,520 4,187,121

l 3,500

93,903,341 5,31 1,122

i0,877,396 2,622,049

35,r35,756 4,544,164

1 3,500

86,325,376 1,571 ,9(t5

25,564,409 199,111

l020

20

25

25

20

?6,3(t4,123 2,4't6,613 (l 1,134'410) 17,44(t,3tt6 6'880'804

5tt,264,542 3,065,486 61,330,028 11'510,?93

2'"1J25.471 18,182,819 (14J23,405) 255'584,1t85 53,24\,874

Furrriturc, fixture rtrltl fittirtgs()fficc cquipmcnts

Staff cquiprneuts

42,755,603 2,016,830

48,196,148 5,099,6i,0

1 3,500

l020

20

25

25

20

1 3,500

93,903,3{ I

26,364,123

n,aat,t.lg9,297,471

l,caschtrld irrrpr<rvcrncttt 60,451,214 7,391 ,895 =!'1

'8!?'y?- 280,572,175 nszo,scs - 30')'321q19_

(lornputcrarrtlrclltcdctluipmc, 103,160,7'10 4,(109"900

iU<ltor vehicles 25,994,910 9,666,690s3,887,197 4,377,345 -:9,261,542 -j)'19-4,!?l

@ - 251,72s,47t s7,667,s69

Particulars

CostRatc ofD.p.

Dcprcciation Wrinen DorvnValuc as at

f)ecember 31,

20L5

Balancc as at

January 01,

20t5

Additionsduring thc

vcar

Disposalduring the

vcar

Balancc as at

Decernber 31,

2075

Balancc as at

January 01,

20L5

Chargcdduring thc

veaf

for thcdisposal

during the

Balancc as at

December 31,

2015

67.849.169 4,991,062 12,840,231

309,393,040 13,783,119

Writtcn DownValuc as at

I)ecember 31,

2014

Balance as at

Decembcr 31,

2074

Balancc as at

January 01,

20t4

Balance as atI)cccnrbcr 31,

2014

Balancc as at

January 01,

2014

HYC,,

((

Bank Alfalah LimitedBangladesh OPerations

Currencv Analysis

as at December 31, 2015

'l'he table bclorv slmrnarizcs thc currcncy-wisc analysis of asscts and liabilities as at Decetnbcr 31, 2015

carryine amounts in llarleladcsh Taka, broken dorvn by currerlcy'

Annexure-E

f'he Bank's assets aud habiliries are included in thcil'

Particulars

Balance as at December 31r 2015

Total TakaTakr

EquivalentTaka of I-iSD

EquivalentTaka of

GBP

EqtrivalentTaka ofEURO

EquivalentT:rka of

JPY

116.e90,736ASSETSr'^.-L ;- h.nl 177 ,441,540

i+1. Il.,'.'1".1..h ILnL c,rrl its egetrt b:rttk 191,291,556 491,848,538 3,893 7,665 441 1,283,152,093

R,lo*o rrrith orlrcr l'ranks and furar:cial institutions 1,263,407,434 275,516,358 405,84(r 195,594 25,709 1,540,200,941

\,,fn-arr at rnll errrl qh()l t not

Investrnents 6,951,913,745 6,954,943,145

Loans and advat:ccs 1,137 ,114,897 320,710,335 1,758,425,232

Flxed assets 53,243,814 53,243,811

Other assets 662,880,245 2,158,911 665,639,162

Non-bankinq asscts17,280,472,427 7,097,344,952 409,739 793,259 26,750 78,373,046,527

Total asscts

LIABILITIES460,000,0(x)

fl*.^"rqq. tronr otltcr banks, furancial Irrsritutions and'

11,434,411,999510,911,20610,923,295,6711.,293,821,6711.293,821,,611

510,917,206Total liabilities 72,677,177,288

Net position

(1(( (( (((l(((t((

450,804

Annexure-F

fllcs Y

IJank Alfalah I-'irnitcd

Ilangladesh OPerations

Disclosurc of Tax Provisionas irt Deccmbcr 31, 2015

:rr 2tX)A Itavc l>ccn scttlcd. Stattrs of rt sr of thc ycars arc as tirllrlrvs:

<lis:rllorvetl cxl)cnscs. so, <tur ta: llrovisirln is fclt adcrluett l{, t)1((t thc tax liabilin as pcr'l:tr consultant's ccrtif-tcatc

,i. ]t.:

ar ftk's ttp r() lncomc

Provision IIcld StatusInconrc Ycar

AssessmentYear

'I'ax as pcrRcturn

Tax paid /Deducted at

sourcc/Minimum'l'ax

Tax claimcd bY

DC'f as pcr AppealOrdcr (in additionto tax paid carlicr)

'['otal'faxLiability

73 4 5

1 ,

2009 2010- I 1 5,325,000 8,s53,302 4,-193,{ft9

473"'].jjl.

13,046,79',! 949,400 Undcr ,\ppcal

53,152,41 9,249,323 Unclcr Appcrl201 0 201'.t-12 4,51(t,323 6,423.:zO8

4,7 I rJ,678 57.1 74.1 I I 61,892,869 14,536,987 L)ndcr r\ppcll201 I

2t)12

2012-13 ,oUnder r\ppcal

2013-14 6,2'.16,162 6,2t6,162 63,682,365 69,898,52 ,uu(

11,561,461 11,561,461 Llrrr.l"t Ir..,.*.. tbr r\1>Pcal

201 3 2014-15 11,561,46r 7 1,561,461

118,921,214 181 ,658,000 l;ilc yct to thll r.rndcr audit201 4

S;b rb*t2015-16 118,921,214 113.921,,21

271,258,898 276,394,085 112,619.25 449,013,340 285,011,17'.|

201 5 2016-17 161 ,964,000 9+,608,1 85 161,964,00C 228,500,000 l{eturn to l>c submittcd inJulY

2016

433,222,898 371,002,270 172,679,255 611,037,340 58,577,777Total

Hy<

)o

Bank Alfalah LimitedIlangladcsh OPeratit>ns

Ivkrtiihcel Islamic Banking Branch

Balance Sheet

As at December 31, 2015

Notc2015

Taka

2014

Taka

PROPERTY AND ASSETS

Caslr

ln hand (including tbrcign ctrrrcncics)

lltltrrce rvith lhngl;rdcsh IJarrk rrrd its agcnt btnk

(incltrdirrg [orcign currcncics)

Balancc with other banks and financial institutions

In 1)angladesh

Outsidc Bangladcsh

' Placcment rvith banks and othcr financial institutions

Investntents in shares and sccttritics

(lovct rlncnt() tlr c rs

InvestmentsGcnctal invcstmcnts etc'

llills purchascd ancl discounted

l;ixcrl asscts irrcltrtlirrg prcrniscs, iurnittrrc and fixrttrc'

()rlrcr asscts

N,ru-l>ertkirrg rsscts

Total assets

LIARILITIES T\ND CAPITAL

Liabiliticsl)l,rccment fronr banks tnd other Fr:mncill institutions

f)cposirs and other accotrnts

.\l-rvrclecah currctrt and otltcr dctrclslt acc()urlts

llills palablc

i![ ud:rralr:r s:rving tlcP<>sits

lvlud:rr';rl>ir tr:ntl dcPosits

()rhcr litbilitics

I)iftcrcd tax Lirbilitics/(asscts)

'fotal liabilities

Cupital/sharelroldcrs' cquin'

l(ctitincd c:trnings

Total sharcholdcrs' equiry

Total liabilities and sharcholders' equiry

4,667,24+,'730 4,132,238,192

4,667,211,130.. 4.432,238,192.-

10

11

)

4 373,019,178 281,387 '777

f-T8-rt'-1'rJr-tl f ,,r..,r,l-x I

I ,r.,rrr,rro I I ,,,,rro.r*o I

4 400.000.000 350,000,000

i--_:l[-_]l6 2,920,865,326 , , 3,044,522,935

|I zssr.sso.tqz I I 2,58],8e0'+16 I

| ':lz,lrs,'i*

I I 'lcr'orz,;rq I

-1.998.16(r

968,362.060

1.667,21+,730

3.E24.9s1

151.502.+9ii

4.132,238,192

9 1,321,:123,167 3,98'i,250,;32 ,

f- +:'']:il''']'s-.-l

I sr,ool.siill l5'62+'l')6 I

I r,.rec,s: r.'r:: | | l.i- 1.27r.6"s I

I r,qoq,r o r,-r, I I z.t oq.o')'.+'+ |

342,121,?63 416,987.160

Z'yryrlqli:'HJ&'ri

7

8

Note2075'I'aka

?!_!:r

Taku

OITF-T}AI-ANCE SHEET ITENTS

Contingent liabilities;\cceptances and endorscmcnts

L,cttcrs ()f guarantcc

Irrcvt>cablc lettcrs of crcdit (incltrding bacl< ro brck bills)

llills firr collcctiorr\':rl uc rli tlangl',ltics h Srtncirlvp:trre

Othcr commitmcnts[)r>ctuncntary crcdits and short term trlde-rcl:rted trarrsactions

lirrward asscts purchased and forward deposirs placed

Urrdrawn notc issuancc and rcvolving undenvriting flacilitics

Undtawn frrrmal standby thcilitics, credit lincs and <:thcr crlmmitmcnts

'fotal off-brrlancc shcet itcms incltrding contingerrt liabilitics

1.444.904,00't 1,145,619'951

I rss.zo:,zso | | lo.5o1,)s- I

t2 I zrs.r s+,olq | | 5a0,7 17.768 |

13 | rac,sz,,o+;ll 231.103.;fi)l

I r r+.sst.u +o I I 302,118.916 |

I sr,.;;;.ooo | | co st;.oo,r I

EEl,,l 14,90 1,004

1,4{{,90{,004

1.115.6 19.95 I

1,141:,619,951

5'{

Banl< Alfulah LilnitcdBangladcsh OPerations

Nlotijhcel Islamic Banking Branch

Profit and Loss Account

for the year ended 31 December 2015

Note

2015'I'aka

a$Talca

Irlvcstmcrtt incomc

I)rotit pairl orr dcP,rsits

Net invcstment income

Incomc frorn investmcnt in shares/sccuritics

Commission, cxcllangc and brol<cragc

C)thcr opcrating incornc

'I'otal opcrating incornc

S:rlarics lutd a[[orvlnccs

Ilcrrr, taxcs, insutrtrcc' elcctricity ctc'

L,egal cxpcnscs

l)ostagc, stantPs, tclecommunication ctc'

Stetionery, printiug, advcrriscrncnt etc

Shariah strpcrltsory cotumittee's fces and cxPcnscs

,\uclitors'lccs[)cprccilrtirln arrcl rcplit t<: ]hnl<'s :lsscrs

Zaliat cxpcnscs( )tl:cr cxpcrLscs

Total opcrating expenses

Profit bcforc provision

Provisior: f<>r investmcnts

CcncraI ProvisionS1:ccific provision

l) r, r.,,isior't ti rr o [f-l:elancc shcct ircrns

l)r,rvisiort [<rr clinrintrriorl in v;tlue oi invt'sttlrcnls irt shrrcs

( )tltcr ptovisr<,rts'l-otal provision'I'otal profit bcforc tax

l) rovisiorr for ttxation

Curre ntDeicrrcd

-fotal provision for taxation

Nct profit / (loss) trfter tax

443.'t11.29+i I 3,(ri9,-162

ro.r f-(r?Jo6il f ,i:dlro.r I (+s,iao,os8)l | 12.612,2s6

1

(4J,{13;29{) 72,639,462

79,691,113 (9,873,048\

[-_ll--_l79,691,173 (9,8!,01!I

ls 1_j6r- %?J8fuo7l f ,(,,+-rn8.r8ll

16 | ir,,,rto,rr*'ll (:r;.r"r;,--r,l52,008,683

71

18 32,581,218

19 9,502,329.12,083,547

91,092,230

20 29,911,;43

21 16,28+,241

22 1,913,-115

23 1,626,155

24 2.r.18,258

25 5,321, r-91

57,811,.{ ll36,277,879

9,041,108

3i.169.t-28,2?9,-182

. -r5,.t-+9,051

54,490,162

27,1.i3.t-t3

14,912,110

1,1i52.90 +

1,18'l ,391

2.i)91.6?.9

3,t)>2,t r- |

57,723,748

2,766,414

f?Yc

Bank Alfalah LinritcdBangladcsh OPerations

Irloti jhcel Islarnic Ilan lcing Branch

Stirte nrcnt of Charrgcs in Equirr-

for tlrc lear cndcd 31 Dccernbcr 2015

Fund deposited s ithBangladesh Bank Ilctaincd eamings

79,(r91.11.1

ToralP irrticu [ars

Balance as lt Januan 01, 2015

N et loss for tlrc 1'eiu'

'l'ransferred to l]anqhdcsl: counrrv r>ltlce

Birlirnce as at l)cce rnber 31, 2015

Ballnce as ilt Jirnurry 01, 201'l

Nct lr>ss [r:r thc yeirr

'l'rarrs[crred t() l]inglll(!csh councrY officc

Balance as at Deccrnber 31, 2014

(79,6er,113)

'i9.691.11i

[:r.691,11]i

(9,87.],' )48)

9,87.1,048

i9.ttl.l.o4 ri)

,.ui 3.04,*

Benk Alfatah LimitedBangladcslr OPcratiorrs

Nft.rtiihcel Islamic Banking Branch

Casl'r Flolv Statement

for tlre year cnded Dccember 31, 2015

Notc

Cash flows from opcrating activities

Iov(:strllcllt inctlr:rc rcccipts in clrsh

l)rofit paid ,>'r dc1>osits

t'ces ,rnd cotntnission rccc\lrs rn cash

Ilccovcrit:s on lotns prcvlousl,v r"'rittcn-tl[f

Oash paYrncnts to emPl<r1ecs

Oash paYnrcrlts to suPplicrs

lnc<.rme taxcs paid

Rcccipts lrorn othcr operaung acriviti('s

Fayrncnts for othcr oPcrating llctiviries

iii.r*ri,rg loss bcforc changes in opcmttng asscts and tirbilitics

26

27

28

29

30

31

32

Incretsc/dccrcasc in opcrating assets and li;rbihtics:

SIatL)ton dcposits

PurclrascTrsalc of trading sccurirics 33

Illvcstn'Icnts t() custol)]crs

C)thcr asscts 3{

I)e1;osits'.trrcl otllcr iccollnts iror:t othcr b:lnlis 35

L)cposits anc.l othcr accounts ir()nl customcrt 36

C)thcr li'.rbilitic, 37

Oash gcrrcrated from/(uscd irr) operatinu asscts and.lirbilitics

N"t clsh inflorv/(outflorv) fronr oPe rating activities

Cash florvs frorn invcstirrg activitics

l)ro(:cccls ir,ltr s'llc/rcdcrlptio'r oi sccuriries

l)lytrtcttr tor purclrltsc ()i :ccLrrltlcs

l)utchasc tti tixc.l a-tscrs

Salc of frxcd asscts

Nct cash (uscd in)/from investing activities

Cash florvs frorn financing activities

Nct incrcasc/(dccreusc) in caslr and ca:;h cquivelents

(lash and ctrsh cquivalcnts al bcginning of thc year

(lash and cash cquivalents at cnd of thc ycar

(laslr in hand (inclucling forcign ctrrrcncics)

Brhncc rvith othcr benks and financial institutions

Iialrtncc *'ith 13a'rglaclcsll llerrk errcl its agcnr banl< iirrcluLling

t,>rcigrr ctlrrcrrt:tt:s)

11.4+5.5 l6 io.l I I .405

(6,31.i,+7{)) .+.li60.tt85)

rc.862.666) 85.1()9'251

123,(ti1 ,60) (5ti4'1 I1 002)

(293,070,83r1 538'{t 13.808

(31 ,966.631; -t"18.()96.9"1

31i.23e,666 (-6.817.93-)

(16,106,163) (16'162.38'r)

-t 51,;51,+l') 310'592.458

- t46,890,',171 395,701'709

(r.2;'1,3;2 r

15,000

6,2'59,312)

141,631,40 I

631,387,'l'71

7?3,019'178

l.i.l t.12(),

38,119,32-t

400,000,000

631.38'l;1'7',1..

69,790.831

350.000.000

2015

Taka

232,1 19,685

(221,816,t32)

21,623,031

(29,917,518)

(i9,911J28)

2011

Taka

]5S,( )49.i5:

(267,919.790)

1 5.317.6.19

(27,:3 3,1 43)

(17.rJ7 5.342)

(1.53"1,U0)

39{,167,589

237,220,788

331.899.85 I 21 1.596.9'16

---rlsrxl?8 -- G3$q-r-

Banl< Alfrrlah LimitcdBangladesh OPerations

N{otiihcel Islamic Banking Branch

Notes to the Financial Statemcnts

as at and for the year ended Deccmber 31,2015

Rcporting entiq'llanl< r\lLhl:rh l,irnitcd' Brrrrqlaclesh Opcrltio'rs

c()nrpitnr) inc,rrllrlrltr:d in l)rktstarl"l'trc Btrrrlt

officc is 168 (lulshao '\r'cttuc, Dir:rka-1212'

("thc llarrk"l are branchcs triBarrl< '\lralalr l irnirctl (tlrc Palcrrt

is tlrnricilctl irt Ii:rnglaclcslr' '['hc aclt]rcss rlI thc l1:tnk's cr'r-rrtrtt

t.1

-Ihc lltnl< srartcc.l its oPcration in [3anghdcsh orl 16 \hy 2005 l>v acqtrrring Shanril IJrnh oI ti:rlrrltn's l)lral<a

bronci] ,rp..atio,]* ,, n brench OI tltc parcrrt conlPany ']'he l]'.rnl< iras.7 l>rlncltcs as on,31 l)ecernbc': -2015

N{ori]lrccl branc6 ("rhc l}rench") is t6e only islamii banking branch and rcst oI thc branchcs arc c,nverrti..:rl

bankirrg branchcs

Principal activities of thc Bank/llranch'l.he lllrnl< prirnarill, is rur,,luc,l in llrovitliilg illl krnds r,f contolctci:ll banl<irrg scrvlc( s to tltc cu'totncrs lltt

Ilank oftcrs scrviccs [r,r. :rll ct>n,ncrcial brniring rr,.ct]s ot rhc cusromcts, vhich incltr.lcs tlt'posir bartliirlg' l'rrts

arrd advanccs, cxl)ort,nporr financing, ct..'t1,. llranch provides all'kiilds oIc'rllnrctciltl ll:tnliirrli crvlccs ()rl

thc b'.rsis oI islamic banhing principlcs'

Basis of PreParation

Statenrcnt of cornpliance , , r rr: -^---:^r r)..,.,\..,-lhc firrancial st,lrcrncnrs rtI thc I]rrnch erc prcparccl itr accorclancc witli l]angl:rdcsh [rirranciel llcPor:rtnq

Strndrrrtls 0][RS) arrd thc rctlttircrncnts olthc llarll< ('ompanics \ct 1991' thc-rttlcrr attd t'cgttlati"ns tssLrccl lrr

llarrglrrclcsh lhnl<, rhc (.-ornPrtrries,\ct lggl ltl cltsc arty "tf i""tt'" ol tlrc l]:trlli ('t>nlllrrrtics '\cr lt)9[':trr'l

l.rrovisi.rrs rrrd circulars rsr,l".l Lt ltanglatJcsh liank clificr rvirir thosc oi IJlrliS, tltc tccltritertrcnts.t rhe lirrrli

Corrrprnics r\ct 1991, ",',,1 1rr.r"i.i,,ri, ancl circulars issucd b,v Bangllidcsh llarrk sh:rll Prcvail \larcri;rl

,l.pnru'r", tiom tlrc rcclttiremcnrs of t3F1{S trc as tirik'rws:

Investment in shares and Sccuritics

BFRS: r\s pcr rccluircnrcnts of B:\S 39 invcstnrcrrt in sharcs antj sccuritics gcncrally [al]s cithcr trnclcr "rlt feir

value thr.<>ugh profit lrrtJ loss accr>irrtt" ()r tlndc:r "'.N'aihLlc tirr s:rlc" u'ltcrc anv cllartgc irr tlrc t:rir laltrc (:rs

mc,rslrrctl irt ncc()r(lancc s,itlr BFItS'1 3) at thc rcar-ctt<i is tll<crt rrr profir and lt'ss ilcc()tlrlt or ttritltlatirrrt

rcs( r\ e rcsl)cctivclY

Bangladcsh Barrk: .\s pcr ltliPD circullr rt,>. l4 drtcd 25 Jrrnc 200J invcstnlcnts ir.t tluolctl 'harcs rtrrJ

L1.l(ll,l()reA sharcs arc Lcgl'lucd at tllc ycar cnd at rnrrl<ct pricc artd as Pcr l)o()k valuc oI last atrclircd lrrtl'tncc

sltcct rcspcctivell'. I)r0vision shoulcj [:c madc [o[ nuy loss arising fr<'m dinrirrurion in valuc of ir]\cslnlcrltl

othcnvisc investtncnts :rre rccognizccl at costs'

ii) llcvaltration gain/loss on Government sccttritics

BFRS: ,\s pcr rc(iuircrnerrt r>f B.\S 39 rvhtrc't-biUs and'['-borrds rvill rhll ttndcr tltc cetcgory o[ "lrtlti t.r

trarling,,. xrry cllrngc irr tl:c iarr vliuc oihclcl [,rr trldirrg asscts is rccogrrizcd throttqlr prt>[ir alrrl lttss rt:ctrtlt'tt

Sccuritics .lcsigrratcd as hclcl t() nraturiw arc rncasLrrcd at anrortizc(l cost rnctllotl and lnrcrcsr irtc,ttlc :s

recr.rgnizccl through thc proht ck loss acctlunt'

Banglaclesh Ilank llli[' sectrritics arc reYalrrcd on the basis o[ marl< to tnarl<ct xn(l at Ycar cncl :tltt stins '>r:

rcv^luari'n .f sccuritics rvhich hrvc nor maturc<l xs at thc l-:alancc shccr tlate 11c 1cs1'gnizcd irr r:rht'r rcsctvcs

^s rr parr ,lf cr*rin, arrtl anr losscs <>n rc\,llLlxri()n .I sccrrrittcs u'lrich tr'.lvc nor marulcd as at tllc llal:rrtcc sltt:cr

chic ate clrurgc<.1 rn thc prrfit ancl Lrss ilccounr. Irrt( rcst on IJlil' sccttrirics irrcltrclirrq xrnorliTrltiorl rri tliscotrfit

arc rccoll'izccl irr tlrc l.rroirt and loss acc()unr. ll'l\l sccutitics rvhrclr hnvc ttrlr tltatttrccl as at tltc ilalrrrtcc sllctt

drtc arc;rnrortizcd rt thc vcer cnd and gtirrs or losscs,ln arnottiTilti()n itrc [('c()9lli7c(l irt tlthct rcscl'c:ls a I);lrt

c,I ccyuriry.

2

2.1

(,2

i ii) Provision on loans and advanccs , -r L:-.--'

BFRS: r\s pcr llAS 39 arr entiry should start thc impairlncnt asses.srnellt b1'consiclcring rvlrcrhcr obiecttIc

evidencc of impairmenr cxists for tjnencial asscts that ilrc individually sigrri6cant lior fin:rncitl ass(ts ^rc

not

individurllv significant, thc ilsscssolcrlt cen bc pcr[ormetl on atr inclividual or collcctivc (pc-rrtitrlio) basis'

BanglaclcshBank: i\s Pcr BI{l',t) ci'-cular No.l4 (23 Scprcrnlrcr 2012" tlRl'l) cilcrrl'tr \o19 (27 [)cccnrbcr

2012) ant.l Slll)l) circtrlar.No. 05 129 trlrv 2U13) a gcncrai Pro'rsi()n ar 0 2i"ir t() 5:''o rrrldcr tliitcrcnt categ()rrcs

oi urrclassit'icd loans (Uoocl/st:rndard loarrs) h:rs ttr bc tn:rtntaincd rcg'lrdlcss rri objccrivc cvitlcrtcc r'I

impainncnt. Als<l provision frrr sub-stlndarcl loarrs, doubtiul krarrs and badr'loss ltrans h:rs to bc 1:Lot'idctl tr

2[g,o,5[ohancl 100% rcspcc;ivclr frrr loans ancl acivaoccs dcpcnding ()n the Curatiorr rrit:r'ertlttc \1''a;n rs ptr

Bll,l) circular n.. 14 datcd 23 Scprember 2012, a gcncrai in>vision 1r lozl.is rccluirccl to bc prr:vitlcd lirt nil

oflf-balrncc sheet cxposurcs. Such provision Policics arc n<'t spccrficrllv irl lirlc witlt tltosc prcscrrl>td br' [t'\s

39.

otltcr comprchensive incomc :itl s(rte rncrrts or rllc: clcrncnrs

IIFRS: ,\s icr I).\S 1 ()rhcr (-oniprchcnsivc lrlc()nlc is a c<'rtt1.loncnt ol lttlattt

o[()thct.(.ornprchcnsrvc Incr>mc,,r. u, lr. i,rclr'rdctl in a Singlc colnPrchcr:sivc Incr'nre I()('l) Starcntcnt'

Bangladesh Bank: Bangladcsh Baok-has issued tcmplatcs ft>r frnanci"rl.statenrctrts which rvill scricllv be

ftll]orvccjbyallbanks.-|Irctenrplatesoff]nancids.tatcn.Icntsissucdbvlhngladcshliarlli'don<ltincl:rdc()thcr(-omprchcnsivc Incontc ,,.ra ora ,1," clemenrs of othcr Ct>mPrchcnsil'c Incornc allorvcd trl rncludc ro a Sirrltlc

C.rn,relrcusivc lncomc i )CI1 S,",.,r,",,1: -,\-..Y.h

thc corn,rn',' docs Ix)t Prc'ar( thc otlrcr c.r,,rcllcttstrc

inconrc statcmcnt. I I.,o,.v"r .1.,r,"ntll of O(.i, iI anv, atc sl,,lr"n in tl]c stttcrl)cnts oi cltll'tgct irl ctlrrirt '

Financial instrumcnts - prcsen(ation and disclosur

In scvcral cascs tlanghdcsh flank guidclincs carcgorizc, rccognizc, lllc:tsutc atrtl 1.)rcscrrt inancirl instrttrttctrts

clift'ercntly froor thosc Prcscribcd in g.rs lo. r\s such sornc disclosurc itn<J 1;rcscntatir>n rctl-:Lcmcnts rri lllrl(-i

7 and I);\S 32 cannot I>e madc irt the finrncial stltcnlcnts'

vi) Rcpo transactionsBFRS: \\,lrcn arr c.tirr sells a finerrcial lsscr arrd simultrnco,slv clltcrs irrlo illl aqrccrllctlr t. rcPtrrclrrst tltc

assct (()r I similnr ^.ra;

,,, a tircd price t)rr a future dttc (rcp<, c)rst()ck lcrrdrng). tltc rr'lngctttcrlt is 'lcc')trntet]

f<rr as I clcp.sit, itncl t5c urrdcrlvirtg assct corrrirrucs tcl bc rcct'gni'cd in thc crttit""s tilanciltl statt:rnc.ts'lltis

transacti.n rvill l:c trcrrtcd "*

l,,on on,l rhc di[[crcnce l>cro.ccrt .Llling pric" arrd rcpurchlsc llricc Nill [>c r';cntct]

as iirtercst cxPcllsc'

Banglacleslr Bank;\s pcr. l}ltl)I) guidclincs, rvlrcn a barrk sclls a tjnnrrcia] assct iIt)d stmuli:tttt'tlrlslv tlticrs

ir-tto il(r irlirccnrcnt ro rcpurchxsc thc xssct (or a similar assct) ar a lxccl price ()n it ftlrtlt'c d:rtc (r'cp" or s(rcli

lcrrclinp|, thc arrlnucttrcnt iS accot]tltccl ftlr irs a n<ltr:rrl salcs trtrlsacti()l.ls,.ll]tl tlrc [irlllrcilrl;tsscts lltC

dcr..,,,{,tir"r'l in the scllcr's btrr'l< ltrtd rcctlgtltzctl irr tltc bu!cr's i>oilli

vii) FinancialguarantcesBFRS: ,\s pcr Br\S 39, t'lnarrcirl guarantccs xrc conrr,lcrs thrt rccluirc atr cntiiv to nral(e sPccifictl I)avme nts t()

rcirnbu:rsc rhc holclcr f<rr a loss it irrcurs i>ccluse a spcciticd tlcbtt>'.farls to nr:tlic payrrlcnr rvhctt cltrc i't

accr>rtl:r.cc rvirh tlrc rcrnrs .i a rlcbt instrur,",,r. [-i,',anii.l gtirrlntcc lilbilirics "trc

rcctignizctl iniri:rlh tr r]rcir

fair v:rluc, ,rnd thc rnitial [air r,,rluc is rmr>rtizcrl ()vcr thc litc of thc firlancill gLrarar]tcc 'Ihc tinrrtcial qul\[artt( c

lilrbilirl rs subscclucrrtly- carriccl at rhc highcr <,i rlris arnrrrrrzcd tnroLtttt and thc Prcsc|lt vllltrc rtI rn| r:xPcctccl

p.,.nrcrrt u,5cn a l)a'nrc.t urrdcr thc qualarrrcc has llcc.mc pr,rb.blc liirrancial qtlltr:Irltces ate irrcltrricll r'itlrir:

othcr [iabilities'

Bangladcsh Bank: As Pcr llltl'l) 14, flnarrcial guarintccs such as l-./c-"L'/C will bc trcatcd es ()i[-llrrl:rncc

Shcct itcnrs. No trai:ilitv is "ct'gni;z"cl

for tllc guarantcc cxccPt thc c:rsli mergin'

i")

v)

viii) Cash and cash equivalentBFRS: (llsh ancl cash ccluivalcnr ircnrs shr-,irld [rc re1'rortecl ts cash itcrtr as pcr [] \S 7'

Banglirclcsh Bank: S()nrc cirslr ,rrrd ctsh ctlrrivlrlerrt itcflts srrclt is'rt.tttttcv ar ctll arlti ott sltt)rt ttoticc" tl castrl\

biJls, l>rizc llond uncl Ilangladcslr ll.rrrh bills t[c n,)t sl]ou'r) as casll llncl caslr ctltrivalgtt irltlncv ar c:tll itrrtl trrt

sllort.()cicc is sirorvn as f,,.. ,:,.n.r ln balancc slrcct, arxl trcnsrrrl'bills, prizc l>orrds itncl B;rnglaclcslr ll:rrrk bills

arc shorvn in invcstrncnts

i*) Non-banking asset

BFRS: N<, indrcation oIi'von-banl<ing assct is iotrnd in :rnv l]FIIS

Bangladesh Bank As pcr lll{Pl) 1-{, thcrc Intrst csist I tlce ircnr namcd No't-llrtrtliirrg rtsscr'

x) Cash florv statcnrentBFRS: Cash t'low statcmcnt c:rr.r bc prcirared crthsr irr clircct rncth()d or in indircct rncth()d 'l'hc prcscrtrariorr

is sclcctccl to prcsent rScsc cas[r t-lori,s in a nlilnncr that is rnost:rppropriarc ior thc busincss t>r irtdttstrr"'lhc

mcthod sclcctcd is applied consistcrrtly'

Banglldcsh Banlc As pcr l)1{PD 1-{. clsh fl<,u'is thc nrixturc oIdirccr anc] irrdirccr nlcti'r{)(l'

si) B:tlancc s'ith Banglaclesh Bank: (Cash Rcscrve llcquircrrtenr)

BFRS: li,rlarrc. *,irl.r lt^,rgl^.lcslr il:rrrl< shot:lcl l;t' rriar"cl ,r. otltt r assct as ir is nr't ;lvttlal.,lc tor itst irr 'l'rt' ("

d;lY r>1:crrtiorts as 1.>cr llAS 7'

Barrgladcsh Bank Belancc rvirh B'rrrgladcsh Bank is rrclrcd as caslt irnd casheclutvalcnrs'

xii) Presentation of intangible asset

BFRS: Inrangi6lc essct nrust bc iclcnriirctl u:cl rcc,rgnizcd. and tlrc clisclostrrc tlusr l>c ltivcrr:ts ltcr ll \> i8'

Bangl:rclcslr Bont.,''l t,.r. is rt'r re quircnrctrl for tt'gulatio,r ,>[ irrr'.lnirilrlc arsels irr ltlt])l) 1'l

xiii) Off-balalrce sheet itcms r - -. .r....... :.. ^^ ..,,,,,i,.BFRS:',ftrctc is no co.cept oi off-balancc shcct items in any IlFltS; hcncc tltcrc is no recltrircnrcnt t>[

disclosure ol off-balance shcet itcms'

Ilangladcsh Bank .\s pt' itltl'1> i{, o[i l>el;rrrce sh(ut rlenrs

scqtltrlttcli' irr tacc oi brlartce shce t

xiv) Disclostrrc of appropriation of profit

BFRS: 'l'hcrc is Iro rctlrrircrrlcnt ro shorv rppr<>priatron oI protit

inconrc'

(c.g. Li (i, l,/C. crc.l tltr.tsr l>c tli:cl'rsc'l

Bangladesh Bzrnk: r\s pcr BItPD l4, an apl;r<-rpriati<ln oIprr'fit slrou]d be discloscd irr thc lacc oi t>rofit rrrci

Ioss acc<luttt.

xv) Loans and aclvancc/invcstrnents net of provision

BFRS: ] ,oflns antl ad\'rnccs,lirrucSrrncnts sllorrltl lrc prcscrlrccl oct <>i 1:rovisittrts'

Bangtadcsh Bank r\s Pcr Bl(l)t) 14, prr:vision <ln loans arrd atlv:rnccs/invcsrmcnrs xrc I)rcscntcd scpar:rtrt'lr

a, liJility and catrnot be ncrtcd c>fiagainst loans and rdvanccs'

'L'hc iinancial stttcrncnts were authorized tirr issirc by the scnior manaqcmcnt oi thc lJarrli (Barrgladcsh

Oi;crations) oIr 25 I\[trch 2014

in thc ihcc oi st:ttcttlctrt oi cotnprultcttstvc

,/':::: -.//...'t . , r//. " - t

/.,rr' -.; :,HYC

xvi) Rccognition t>f intcrcst in suspe nsc:

IIFRS: l.';,rris ^rrcl

ar1 a.ccs r() cL:str)r]1(',rs ltrr gcner:tllv classificd ls "lr''tns arttl rccci "lrlllus"

:rs pcr 13 \i 39:rrlJ

inrcrcst irrcrlrnc ls rec()!{lli7(d thrOugir ciicr'irrt: lnicrcst ratc rlrcti'rod oVcr rlrc tcrnl ()i ritc ltllttt' ()tlcc il l\)ilr) ls

inrpairt:d, rntcrcst i";r;;1" is rcc,,g,r)"d in 1rrofir anrl l,>ss acc()unt orr thc samc basis Ir:tsctl ()tr Icvis(d carrvirttl

alll()Utlt,

Bangladesh Banlc r\s per Blll)D circular no.14 dated 23 Scptembcr 2012' once a loan is classitlcd (othcr

tharr bad loss), intercst on such loans are not allowcd to be rccognizcd as income' lathcr thc corrcsponding

amouot nccds ro bc crcdited to an irrtcrcsr in susperrsc liccolrnt, u'hich is I)(cscntcd es lial:ility itt rlrt: brrlnncc

sltcct.

2,2 Basis tll'tlleasurcnlcrtt.I.l.rc

financial statctncnts oi ihc lir:rnch havc l>ccn preparcd orr thc lristorical cosr lxtsts

in llailgladesh'taka ffakr/1'l<) rvhicli is thc Branch's [r,rnctit.rrrnl

finmci',rl in[ornrrtion prcscntcd in 'l'aka lras beerr rorrrtclcd to thc

2.3 Functional and presentation currency

Thcse financial statcments arc Prescntcd

currency l')xccpt as othcru'isc rnd:catcd'

ncarcst illtcgcr.

2..+ Use of cstirnatcs an(l itrdgntcttts'lltt

llt'c1r:rr':trirln 'Ii tltc thtsc t-tlltrtct:tl

otl:cr applicablc larvs end rcguhti'>rrs

csdmatcs and assurllptions tlllt aficct

asscts, liallilitics, incorne and cxpenscs'

slatcr)tcrlt: itr conlirrrtttrt "vitlr Blrlghilcslr Ila'lli ('irctrlars' Iil l(:' 'r'rc]

applic,rblc itr Btngladcsli rccluirc" maI)ngctn(:llt t(t ttrtkt' itrclgrrlcrtts'

tl'," .ppliantio,r of accounting p<llicics arrd tlle rcptrrrctl :ttrl()urlti (!l

Actuel rcsLrlts mlty (liftcr frorn thesc csLinratcs'

l,]stimates :rnd undcrlving assumPtions arc revicweci on an orllloing basis' Ilcvisir>rls to 'tccolrnttng

cstlmflics

arc rec.gnizcd i. thc pcriod i,-, *i,i.lt thc cstinrate is rcviscd aocl in any firturc 1:cri.cls ar-tcctcd'

2.5

lrt [, rrrrr'lt irirl al>r'trt sigrri i-icallt el'c'l] oi cstittr:trttrt

policics thrt ltavc thc rnost siilnrficrtnt citi:ct orr

dcscribecl in notcs 3.7 and 3 1 1 3

unccrtJiitt\. and crirical ir:rl1,.tIt:rtt: irr :rplllt'rrtg acc()rlrltlrt{

thc anrounts rcctlgrrizcd irr rllc tlrrancial stlrctncttts atc

l lantraw to 31 l)ecember 2015

2;7

2.8

Reporting period'I'hcsc 6na,rcial statcnrcnts covcr onc calendar ycar fr<>m

2.6 Cashflos'Staterncnt(lash flt,u, slilrclncrlt itas l:tctt llrcllrrc<l ill:lc(()l'llallcc *'ltll rltc lli(l'l) ('irt:rl1lr Nr'' l5 d:trctl') \itrtrt:lrtr

2tJO9 rsstrt:tl bv tlrc Ilarrliing l{cgr,I',r..,,r "1 |>1,lici [)cllartrncnr.l[.ll.tlrgiaticslr B,;rrlii.

Statcnrcnt oI Changcs in Equirl'

Thc Statcmcnt.[clrarrgcs i;;;ri;y rcflccts inflormation about thc itrcrcasc or dccrcflsc in ucr lsscts ()r wcaltlr'

Liquidity Stltemcnts | --. r-^. r.,.,.^ ^,.,.,."",,,1 r,t1 r,.{i(rr:rl m:rr,.t.hc licluiclitv starcmcnr oiasscrs a:r,l liabilirics.rs on thc rcPorrinll d:ttc lrrs l>ct:n prcP:rrcd orr Icsitltltl m:trrrrrt)

rcrtrr *hrclt llas I:ecn llivt:n in tltc Slarcrncnt'

Signifi cunt accounting Policies-l.hc acc<,unting policics sct out bclow llavc bcerr aplllicd consistcntlv t() all periods I)rcscntcd irt thcsc firtartcltl

statcnrcnts bY thc l)ranch'

.]

Hfc-

6)

3.1 Forcign ctlrrency '-"-'^:'" ^'" r'".*1''r"'l ii)rr\ - tlrc llrr:rl< at tlrc s[)r)l cxchilnllt.['ra,rslcti,>,rs i, tirrcign currerrcics arc trrnsl:rtetl irrt. tlrc ltutrcrit>nltl cttrrcncv r>t I

ratc at tlle datc oI thc transacti()r'l'

N{onctary rssets and liabilitics dcnominatcd in foreign currcncies at thc lcporring (latc arc transl:Itc(l irtio tllc

functional currency ar rhe spot cxchaogc rnte at tha;datc Non-rnonctary asscts and 1iabilitics dcrt.rninetcd ttl

fcrrcign currencics thtt arc n)caslrred at firir v,lluc are rctranslarcd into thc functir>rrll cLrrcncY ar thc sP()t

cxchangc ratc at rltc date that tlrc iair v^ltrc w,ls dctcrmincd' Non-nlt>nctarv asscts and liabilitics tltat'.llc

rncr,surerl in tcrms r>[ lristorical c(]sr ln a tirrcigrr currcncy arc iranslir.tccl using thc cxchtrlgc rxtc tt rhc date (rI

the tr:rrrslction

li<,reigrr currcncv clit-fcrcnccs aLrsirrq rrn trtrrslarion trc rec,rilntzcti in pfllt-tt or l<lss'

Profit tln inve stnrcntsl)rofit orr i.vcstrncr.rts is calculatcrl o. dailv l)roduct l:asis and accrued ut thc crrd oi caclr mtlrtth. btrt cl-rargcd

to custorners'accounts on cluarrcrly'oasis Profrt <,ln investmcnt is taken itlto inc<'nrc account pr()P()tti()niitcll

i",,, f-n, rcccivable r.:;;;;. dt.tduc chzrrgc/compeosauon <-rn classiricd invcsrlncrtts is rrrttstc'rcd tr>

profit srtspcnsc account instcad of inconle accotlnt'

l)r.ljr ^ccrued.n

irrvcstrncurs hll urrtlcr Srrl: Stan,hrrls (SS) an<l l)oLrbtttrl (l)l) crtcgorr';ttc crctlrtctl tti protit

s.Sl)Ctlsc aCc()ultt itrstc:rd.iitlC()Irlj ilCC()unt. l)rt'tlt iS nt't cll'rtgtcl.rt l:ad antl lt'ss lr'ltns lts llct grri'lt'lillc.t'

tlariglrrclcsh llarrl<. Strcit 1.lrotit is I<cpt tn scpalarc r:tctnorlntluttl xcc()ullt'

l)rofit on ctassifictl invesrntcnts.,rtc credited to incomc on a citslt tcccipr basis'

Investment incomelncomc on i'vcsrmcnts is rccognizccl on accrlld basis' ]nvcstnrctlt incolnc includcs c()ul)oIl 1.,tottr on trclstlt'\

bonds and protit orr fixed dcposir u'ith othcr btrnlis'

Fccs and commission inconle is 1;r.vidctl t. its custr'tttcrs''lhc Brtrnch carrts tl.cs tu,l coutnlissiotrs lh>rtr tlivcrsc rl'-tgc of scn'tccs l)I()vructr ::' l:'-t::]l:l

(,o,trluiSsion orl I-cttcr o[ (ir::tlrrttt'c is rccrlgnizecl ()n tCCrtlitl brrsrS' Othcr ttcs a'ttl COI]lll1is5i()ll lllC()ll'lc ls

rccogrrizcd on r rcltliz'.ltion basls

3.8 C:rsh and cash cquivalcnts

.as.:rntl cls[r ccluivalcnrs i,rtlLrdc rl()rcs an(l t:.ins.rr hartcl, u.rcst'ictctl ]l.lartccs lrelti *'ith llenglatlcslr Ilrrrtli

arrcl its:rgc.t l::rrrl<, l:al:rncc rvitlr othcr banlis arrcl tirrr,tcial irtstittttions, l;laccrtrcrtr rvitlr l>arrlis:.tr"ti olhcr

finrnciel institutiorrs and prizc borrd'

3.9 Investnrents/Investrnents in shares and securities

All investmcnt securities arc initially rccogrrizcd ar cost, inclucling ncquisition chrrgcs associatccl rvitlr thc

invcstntcnr. l)rcmittms trc xlnortiTcd ancl discoLrrrts arc accrcditcd'

3.5 DividendsDividencl incomc is rccognizcd rvhcn the righr to tcccive incornc is cstablishccl ustrallv this is thc cx 'lilitlcrrd

chtc for cquiry sccurities l)ividcnds lrc prcscntcd in investrncnt lncofi)e'

3.6 Lcase paymcnts ....-:..r." r:.,,. 1'.,.i-.,,..,.r rrr

llaymcrrts nraclc untlct ()PCratirlg lcascs arc rccognizcd in Profir or loss on:r srreiuht-lirrc btsis ovcr tllt tcIlll (rt

rhc lctrsc.

3.7 Tttx ---.r.-^,...,I.lrcrc is llo sCParatc tlrx reqistratlott tr>r i\I<lriilrccl Ilranch. I Iorvcl,cr. tlrc B:rrrk nccittcS .tncl IxvS rnx at tilc

counrrylevclasits'taxl'evcr'sldcnti6crtir;nNurnbcr(l'lN)rvestakcninthctratncoil]:rnli\lhl:rltlirt:iletl'Ilangladcsh.r\ssuch,.urr.n,,"*anddcicrrecltaxrrccrlculatcdincountrylcvclratltcrtirlnatl>r':rncitlcvcl'].Ircrcfclrecu[[cI]ttilxandclcictrccltaxaren()trcctlgnizc<1[r.lrtlrcl}ranclr,sfinalrcillstlltcn]cl.ltS,

3.2

3.3

3.4

HYE

Value <lf invcstmcnts has becrr sht'rvn as ttntler:

l)rizc Bontl'Urttluotcd shltres

Quotcd shrrrcs

l)ctails are slrown in Notc 5'

3.10 Investments and Provisionsa) Invcstmcnts oI Islamic Barrking branclte s arc

i\t c()sr

i\t cost or book vahrc oi thc ltst atrtlite ti bll:rnct

shect whichcvcr is I,rw'cr

.\t cost or markct valuc rvlrichcvcr is lrlte t ar

l:alancc shcct drte.

statcd irt thc I):rlancc Shcct ,ln gr()ss valtlc

b) l)rovision for irrvcstmcrrts is nrade on thc l)xsrs rrI Pcrioclical rcvicrv bv tlrc

irrsrnrctions c0nrlirrcd irr llangladcsh Btnk 1]l{l)D circular No. l1 (23 Scptcmbcr

Nrl'19(2]I)ccembcr20l2)arrcltll(1,])circullrNrl'05(29IIav2013)..1'lrcdiftltcrrt classifi catit>ns arc givcr t bclorv:

Partictrlrrs

Gcncral provision on

All unclassificd invcstnlcnts cxccpt followinlls-

Small and mcdium cntcrprise financing

(,onsumcr tinancing

I-[ousinq finiincc anc] loans [rrr profcssionals to sct LIP llrsincss

un\lcr consulllcr ftrr:tncirrg scitcrnc

l.()an to lll ls/\llls/SI')s against shl:cs

U nclassi r'iccl agricul tur:rl lorrls

Spccial nrcntion flcco\lrlt (othcr thrtrr S\lMoan)

Spccial nrcntion Acc()unt (tbr SI\IE loan)

Specific Provision on

Subsmndnrd Ioans arld advanccs/invcstrn(:nts

l)oubtful loans antl ach'ances/irlvcsttncrlts

lla.l/ ltlss l<l:lt.ts lttt<'l atlr anccs,'' investl l)cn ts

l)cr',rils arc slrown irr N'lrc 6

deprcciation attcl accunrulatccl inrlllirrrtcnr losst's

assct is (lctcrn'lincd bv conrplring thc pr<>ccecls fronr dispo"al

asse t, and is rccognizc<l in othcr inc<>mc/rrtlter cxpcrrscs ii:

rnanagcr)lerlt :trttl ot

20I2). til{l)t) circullrlarcs rtI provistort tt,t

Rrrtc

lYo

0 2.i0,i'

5" ",

2,,.

2",,

5',,i

5"i,

0.Zt"/o

2()i, n

500,',,

l0()'''o

3.11 Fixed assets trnd dcpreciation

3.11.1 Rccognition and mcasuremcnt

Itcrns of fixed asscts arc mcastlrcd at cost lcss accumulatcd

Cost incltrtles expcnclinrlc ther arc dircctly attrrl>urablc to tlrc:rcqrrisiriorr of assct trrcl l)rin!1ng to thc I()c:lrlr)!'l

,lrrcl corrclirion n.l.a..nrI t<-,r it to bc capalllc 0t'rtpcratirtg irr rhc irrtcn<lcd r]]arlrlcI'

\\ilrcn p,rrrs ()[:Ir) itcpr 'i trxcrl ilssct hll\r tliitircnt usctul iivcs, tllct'ltrc tCc()tltltu(l t'rr as st'pitr';ltt irt::trs

(nr:rjor conrpt>ncnts) oI trxcd asscts'

Thc gairr or loss ()n disposrl of :tn ircm of [rxcd

with thc ctrrvinll arnount o[ thc itcrn of fixcd

profit or loss.

3.11.2 Subseqtrent costs'l-lrc cosr oI rcpllrcing a cornponcnt of arr ircrn o[ fixctl asse ts is rcct,gnizctl in t]rc c:rrrt'irlg arn()tltrt r'I tlrc itt:rtt

iI ir is pr.l>.rl>lc r6ar"thc fururt: ccorr,xnic l:crrc[it. crnbotlicd rvirhirr t!rc P:rrr ''r'ill tlo$'to tl]c l}'ertch :rnti its

c()sr carl i>e rnc..rsrrud rclr:rlll1,. Ihu clrnr,rg :lnl(]Jrrt oI tlrc rclllaccd lllirt is tlcrccollnizccl 'lhc c1,q15 .I tirc tl:rv-

tr, ciilv st rvicittli oi tlxc'J asscts atc rcctlllntzccl irr prr'tit ot Irrss Jj irtcL;rrcd'

WC

3,'1.13 DepreciationDc,rcciation is recogr.rizcd in profir ,rr loss on a striright-line basis ovcr the cstimatccl lrscftrl livcs ot'cach Plttr

ofen ircor ofFrxed assers sincc this rnosr closcly rcticcts thc expectcd pattcrn oIc()nsLrfirPtiotl t'ftlrc iutLrtc

ccon.rnic bcneFrts cnrb.died rn thc assct. In casc ofacqr'risition offrxcd tsscrs. dcpreciation is chargcd frr>rD

t5c montlr oIac.luisition, w6creas clcpreciarion on rlisprrscd rrrf t-rxccl asscts ls chatgcd r"lP t() rhe ttr'rrrth Pri.r,

t() thc disltosal. ,\r.", .*,.g,,* rvisc clcprcciati()r'l r;rtcs [r, tl," .,trr.,,t and contplrttivc vcars ltrc as [r'llows'

3,12 Deposits and other accounts

I)cposits and otlrcr xccounts include non

rctlccnral:lc lt call, 1'rrofit bt:tring mtrtleral>l

itcnrs arc l>rrltrght to tlnencial statcrllcnts at

Nr>tc 9.

pr<>Frt-bcaring al-w:rdccall currctrt ancl rlthcr dcpt'sit :tcc()Lr''lts

tcnn dcp,>sits, rntrtlarel>l srtrirru dcposirs and bills plyri>lc l lrcsc

thc gross valuc oi tllc <;utstarttlirtg I>:rlartcc l)ctlils :rrc slt'rrvtl irt

Category of assets

Furniturc, fixture arrd fittlngs

L.easchold irnProvcmcrrr

C)fiicc ecluiPmcnts

Strff c<luipmcnts

CornPr,ttcr and rclarcd cqtliPlllcrlts

Xk)t()r vclliclcs

l)cprcciation rtrctho<Js, uscful livcs arld rcsicltral valucs arc

apptopri:rtc'

Ratc of depreciation1jYo

209.'c

204/o

20t'./o

.2'to .,

234',o

rcrrsscssc(l at r:ltcit reportrrtg dlttc anti :rtliusrctl' lt

slrich w'ill bc corltlrrtrctl ortlv lrt

nr)t wltoll) u,itlrirr rltc g,111111;l 'rf

3.13 Ocher liabiliticsothcr lilbilirics comprise items such as provision frrr invcstnrcnrs, profit pai'ablc, profit-suspcnsc' accrucd

cxpcnscs, other liabilirics arc recognizcd in thc balancc shcct acc<-rrclinil to thc guitlclincs <'rI l]angladcsh lhrrli'

,,',.1 int"rn^l p<>licy of thc }lank I)ctails arc showrr in Notc 10'

3.1,1 Contingentliabilities,\ c()r'rtirlgcrrt lial:ilitv is -

,\ ptlssit:lc ol:lig'.rtion thrrt ariscs tbrnl past cvtrrts rnd thc cxistcrrcc r'I

occutretlcc ()r non-occurrctrcc tlI ol)c or lnorc uncertain tuttrre cvcnts

llranch; or

r\ prescnt obligation th'lt ariscs froh past cvcnts l>ut is not rccognizcd l>ccause:

- it is rrot probal>lc thar an otttilow of rcsotrrccs eml:odvinq cconrrnric bcnctlts rvill bc rcrltlirctl ro scrrlc

thc t;bligation; or

- rlrc :rr:rotrr-rr Oi tht. t,ltliglrrion cannt>t l>c nrcasttrctl rvith stiiiicie,lr [eli'ibilirv'

(i.rrti.gcrrr liabilitics arc oot rsco,rrizctl brrt rliscloscd in tlrc finrrnci:rl stat(nlcr'rts rtnlcss tltc p'rtstbrlitt oI e't

oLltl'l()w r)f rcsourccs cntltc:clvrng cc{)rlor'llic l>crreiits is rc[ill>lv tstilnltt:<l'

Oorrtingcnt asscts are not recognizcd in thc

incontc rvhich may ncvcr be realizcd

financial statcmcnts as this may rcstrlts irr thc rccogtritiort t'i

.3.15 Profit shared on dePosits

l,r.fir sh:rrccl tr,,.u,lor.lr^ clcl:osirs is rccogrrizccl r)r'l lccrLlxl l:asis lts pcr proviti,n'rl riltc

tlrc

tlrc

HYC

3.16 Enrployec benefirs

3.16,1 Provident FundEach cligibte cmplovce conrributed @loohof thc basic salary t<> thc l)roviclcnt Fund r\ccrrttnr whilc thc l]ant<

contributccl an c<1ual amount, rvhiclr is kept in a sa'ings/tcrrn deposit accoLrnt. 'Ihc frrnd is rcqisrcrctl rvith

Nttional Br>ard of llevcnuc'

3'16'2 Grattriq'Fund .{ i,,r ^,r)r()1(:,r tirnrlcri u ;lrgrblc crnirlovccs rvlrr,sc pcrirrrl rrl..l.lrc Blrrli ()Pcr:ltcs lltl a])l)r()1C(l tirntlcti ul.aruir',, sclrcnrc covcllt)g (

cr:r'1r'r..crrt \\,ltl.r tlre Blrrrk rs tlvc \'(lrs ()r rrr.rc. ClrlRrtn. is par':rbic t() stlltfott c'rtrt1:lcttttn 'ritlltl llrcscrrl:)ccl

clualiivrng 1>criocl of scrvicc urrdcr rhc schcrnc.'t'hc lhnl<s lirbiirty <.,rr tilis,lcc()ur'lt slltrlds as t'rn Slsr l)cccnr[>cr

2015 was iully providcd in iccourlts consi(lcrirrg rhc stafis accurnul:rrcd grettritv cntirlcnlcnts.tirr thcir scr:vtct

rvitlr thc blnk.'I'hc Graturry Fund has bcen appiovcd by thc National lloarcl of l(evcnue in lrcbru;rq 20l l'

3.16,3 Short-tcrm emplovec benefi ts

sh()rt-tcrm cmplolcc ltcncfit ,rl>ligarions iu'c nrcitsurcci on il,t urtciisct,tlrltc(l l)asls attrl rtL'c c\])( l'1:c(l rl: lil!

rclatc,l scn,rce is proviclcd. .\ liabilitv is recogrizc.l tilr rhc ar:rrrtrrt r:x1'lcctccl ro l:c Palcl lttttler slt"tr-rctrtl c:t'lt

bonus ot profit-sharingPl:rrrs iithc'lJanl. h.. ^

pr.s"ut lcgul or c()nstructivc obligetiorr r" Pav rllis ilrll()Lrtlt:15 a

rcsult of past scrvicr: prouiclccl l:v thc emlllovcc ancl thc tlbligatir>n catt l;c cstirna-rccl tclial>lv'

3.77 Provisions and accrucd exPcnses

Irr cor,pliance *,ith B:\S-37, provisions ancl accrucd cxpcnses arc recognizccl in thc finarlcial stttcnrcrtts \r'llcr'l

the Brarrch has a lcgrl or construcrivc r>l:liglrion as a ,"r,,lt oI past cvcrtt. it is Plobeblc tltat arr ri'-rifl'rr* r'l-

ccon.r'ic bencfit *.f,I L:c rctltrired rrr scrtle rirc,,l>lig,rtion'.rrrd a rclial>lc csrinrarc ca't l>c ntltlt't't tlrc ttt:rr tttt 'rl

thc r>l :l ig'.lt itlr-r.

3.18 Provision for Off'Balance Shect Exposurcs

ln conrpliancc r,,.irh B.,rrrgl:rdcslr uank guidcliDes O[f-Balancc SIlcct itcrns rre drscloscd rtndcr crinrirlucrrt

Ii..rbilirics. ..\s pcr BllPD.lr.ulil No.14 (23 Scprcrnbcr 2012) rcquircs a gcncr:rl provision i<rr o[[tr"rlancc sltcct

cxp()surcs t<l bc calc.latcd ar lozi on all trfi- balancc shcer exPosurcs. ])rovisir>rt hls bccrt nrlirtt;tinctl ar

Oor.rnrry lcvcl.

I)ctails are shown in notc 10 2

3.19 Itnpainnent of non-financial asscts-1.5c carrying amou.ts .I thc ]]r:rnch's non-fiuancial asscts, ot]rcr thrn dctcrrcd r1x asscts' arc rcvicrvctl lt

caclr rcp,rting clatc to dctcrminc rvhcther thcrc is any indication oIirn1.lairrncnt. IIlrr".stich irtdicatrt'n csists'

thc. thc assct,s rccovcrablc anrount is cstinretcd. r\n inrpairnrcnt lrrss is rccognizccl ii tllc crrrying irnl()r'l:rt (!i

iln llssct rrr its cash ocncr'.rting Urrit (CGU) cxct:eds its csdrnrtctl rccovcrablc flnlount'

'l'hc rccovcrable an"lount ol ln tssct or C(l Ll is thc grcater oI tts valtrc in usc arltl its iair valuc lcss c(isti l() s( ll'

In asscssing valuc irr rrse. the cstinlttcd tuttrre c:tsh florvs at'c tliscrlunrcd trr tlrcirl)rcscrlr \-xit)c usllll':l 1)[c-r:1\

discr>r,rrrt ratc thlt rcflccts currcnt nrarl<ct asscsstncnts of rhe rlrnc !".lltlc t'i ttt'rncY arltl rlle rtsks silcctltc rrr tltc

assct or C(iU.

li.r thc p'(pose of imprirrlent rcsting, assets that cannot l>c testccl inclivi<Juall,v arc gi:.trpcd togcthcr itrr, rltc

smrrllcst group oI asscts rhxt gencrat; cash irrt-lows fr..r co.tinuing usc thxt arc largcly irtclc'crlclcrrt tli tltc

crsh inflorvs of othcr lsscrs or CCitl'

Irtrl:lirurcrrt krsscs lrc rccognizccl in protit or loss. Inrpairtncnt Iosscs rccr'qrrizccl irt rcsPcct o[ ('clIis ilrc

allc,carctl first ro rcclucc thc qrr6,ing:lrnoullr r,Irrry qooJrvill likrcrrc<] tr> thc (l(itl lgr.irp oF('(it''s' ltrtl iltcrr

t() ticducc thc c..rrryirtg antounr,ri rl," ,rtt,c, asscts itt rhc (l(iLJ 'lgrouP oIoGUs) rlrt l 1't''r rtr:r basi''

HYL

lmpai.:.rent losscs rccognizcd in prior pcriods arc ilssessecl tt crch rcprtrting dltc tirr anl'inclicatlorls tllat tlrc

loss 5as dccreased o, in krng.r'.*i.t,. An inrpairmcnt loss is rcvcrsed ii thcrc has bccn a clrange irr thc

estimetes uscd t<t dctcrnrirrc r6c rcct:r'crablc amount ;\rt impairnrent loss iS rcvcrsctl onlv ro thc cxrcnt that

thclssct'sc,lrrvltll{anlountdocsnorcxccctltlrecrrryingtnlountrhatu'oultlltavcl:ccndctcrnrirrcrl'rrcrr'i

, dcpreciatiorr or'arnortizadoll, if rt<' inrpairlncrtt loss lrad bccn rcc()gniTccl'

3,20 Rcconciliation of inter-bank/intcr-branch account

ll.,>ks oI irccounrs rvirh rcgrr:d io inrer-barrli (in I3rngladcsh rrtd otrtsiclc t]:rnglaclcsh; :trc rcc'rrtcllctl rcgtrll[lr

ancl thcrc ^rc

no rnatcrial diifercnccs rvhich mly aflfccr thc finarrcial stltemcrlts sigrriricentlv'

Urr-rcconcilcd crrrrics irr casc oiintcr-branch trrnsections as.rr thc rcporting darc lrc not nrarcri:tl'

3.21 Zakar-l-lrc t1.arrc6 docs rrot rlcdtrcr/pav z,rlirt on bclrllf oicUcnts uherc as charitrrblc c<'nrPcnsa[iott is tccovcLcd ort

all,rvclclLtc [aci[rries

3.22 D*e of Authorization'Ihc Frnancial statcrncnts rvcrc authorizcd

Opcrttions on irl:rrch 10, 2016'

by ti'rc scnior rnanaqcmcnt ol tlrc llank' Barrgladcsir

3,23 GcnerelIiigLrrt:s.I llrc'irrrs vclL Iuvc lrccn rctrrrrrgccl, rvlrtncvr:: uectss:lr\', ttl coltf'ltni titc citrrr'ttt tcat's

P rcsc ll laii()ll.

F<rr issue

I

2015

Tal<t

2014'l ak'"r

.13{.899.854 7.11,'196,946

373.019.178 28t,.]37,777

.1.1 (.lash [{cscrvc llecltrircrnent (t.l{l() lnd srltttt,rrv I-rquitJrry Rcqtrircrncnr (SLtt) lrlvc bccn citlctrlrtctl arrtl

mair.rr^incd in accordancc *itl., ,".rio,-, 33 oI chc l]ank i,rnrpar,ics ;\ct 1991, l\1I)D (lircular nt's 4 anrl 5 clrtrccl

1 l)ecerrrbcr 2010, i\[PD circulrr no. 2 datecl 10 Deccmbcr )OiS 'nd

Ir'11)D (lirculaL no' 1 datecl 23'ltrrrc 201-{'

t)OS Circular no. 1 datcd 19 Jrnuaw 2014'

CashIrr lran<l

l.,ocal cLtrrctlcv

F<lrcign currcncics

Balancc rvith Bangladcsl'r Bank end its agenr barrk:

l,rlcal currcncv

llorciqrt cttrrcncics

Cash Rescrve Requirement (CRR)

6.50%o <>f avcragc l)cmand end -l'irnc l'irl:ilitics:

llcquirc<l rcscrvc

.\ctrral rcscrvc ttcld

Srr rpltrs

Statut<.rry Liquidity Rcquirenrcnt (SLR)

5.5% oi rcquircd Avcmgc l)cmand and Timc Liabilitics:

Itcquir:cd rcscwe

r\ctual rcscrvc hcld

Str rplus

F{cld ft> r Statu toq' Liqtr idi ry Retptirenrcn t:

(.:rsir in lrarrd

Ilalancc rvith Baoglatlcsh Barrl< as fer statcmcnt

Irorcign ctrrrcncY uscd in BD-l'

Balance rvith other banks and finencial irrstitutions

Irr tlar4qladcsh (Notc 5 1)

()trtsitlc llangladcslr

.\lso relcr to rrrltc 5 J i<tr nrattrr:irv trisc grotrpirtg

lnside Bangladesh\ [trdaraba' ['erm dePt-'sit:

Social Islani Banl< Li:nitcd

IlaturiS -rvise grotrpings of balance rvith otlrcr banks

()n dcnrand

\ol ntoru th:rn 3 rnonths

\lolc rlrnn 3 months but icss than 1 r'car

\[orc rhrn 1 ycar but lcss than 5 vcars

itlt>re than 5 Ycrrs

' 33,()78,261 68,3 I 1.886. 41.061 t,i+78.9+5

38.119.324 69,790,831

13,+,899,85-t 211.596.946

100.0(t0.000 350.000.0()0

4.2

4.3

t.4

300.38.].3r)1 206,l97.itli\i-lq8-1.152 211.596.1)'l(;

134.601.151 3,399,071

169,555,100 ii4.175,125

173.103.776 380'671'009

--203.s18.Gi6 206'197'881

38,1 ',l 9,12'1 69.790'83 I

]3+,98,1,452 211.596.9't6o0 rQ( rla

ns.tosne 380,673,009

-roo.ooo.ooo 35o,ooo'o()o

5.1

5.2

400,000,000 350.000.0(n)

400,09qp99-

and fi nancial institutions

,100,000,000

350,000,000-

350,000.0()0

400,000,000 3.50,000,000

InvcstmentsGcnctal Invcstments ctc' $otc 6 1)

lSills purcltascd and discounted (Note 6'9)

r\lsrr rcfcr to rlotcs 6-2 to 610 Fr:r further analysis' classitlcatiorr ancl

gr,rupirtg, ctc.

Gcncrtrl lnvestmcnts ctc'

In Rangladesh

Ntorrbaha (l,PO)

T rtrst rcccipts

Owo acccl>tancc Purchased

l)a1'rncnt agdnst docr'rnrcnts (l)'\D)

Financc Against Forcigrr llill

i\ [oralrelra rtrarrttal

Sta[[ rn,:e:rbrlr:l

Outside llangladcsh

Maturity-wise grouPing

Itcpayal>lc On demand

Not nl()rc tlrarr 3 m<>rttlrs

\[orc tltltrt 3 rnotrttts l>ut not tnort: thrrr I vcnr

tr[r>rc tlmrr I ycar llur not mot(] ihtn 5 vears

i\[orc tlrerr 5 Ycars

, lnvcsttnents on the basis of significant concentration

i\clvanccs to ChicI cxecutivc, otltcr Scrrior excctltivcs and

orircr ()ificcrs

Inclustli:rl loans ancl atlvanccs

337.315.134 161,612.51e

2-920.865.326 3,044,322,935

provision [or invcstrne nrs' rnatllritt \tisc

2015'l'a l<tr

2,583,550, I 92

2,14,1 ,132,0637 1,812,999

19,355,66"

5,053.9 l6

39,17l'>,5{r

2.583,550,192

?O.LL-

]-ala

2.5ti2.890.+ i6

2,357,868,9lJ-l

80,263.29Ii

i).169.S0(;-.lr).1ri I .ti-llJ

5 1.826.-t-: '

__?'qzqTq-

6.1

6.2

2,583,550,192

;r.sr:.q')')2.80-+.221,86-l

25,-18".117

19,342,326

2,t)20,865,326

2,582,890,416

"q0.261.29S2.8(,i3.61 I.j I l

(,1.690.2l8

I I .898.(I'-3,0-t+,522,935

6.339 , t-7 5,'>'11 5-1.826.-F',7

2.S8 ',l .0t{9,7r9 1.9 sr.6') 6.+.i}j

-2,920,963,326 3,0-l+,522,93.1

.1?-HYC-

6,,1 Industry-rvisc classification of inl cstments20 15 20t4

Agriculturc, li<lrcstrv, I-lunting arrd

Fishing

ir[irrirrg ancl (]uatrf inq

l cx cilc

Chcnrical :rrrd l)harrnitccuticals

Sugar

Automobilc and trar'rspoltltion

equipment

Electronics and clcctrical applilnccs

Corrs trttctiott\I'hrrlcsalc and ltertil l'rrrdc

I:.xPr r rts,' I IrrPor rs

(larnrcrrrs (l(nit & \\'oven;

lron & Stccl

lrrdividuals

Otircrs

(r.5 Gcogruphical location-u'ise invcstlncnts

5g.29oro 1,102,625,653 29.75o.'o------M-n@-----r9q

o% of TotalLoen Taka

0.0801o 2,2?l '295

0.0()o ilS.04o, -?5,c)5C,0()0

-l.7So n 119.5-'1,519

ii.0()o o

0.610 o 1i.E03,80t)

0.000,0

0.000,0

ti.220 o 2'1tj,1r95.0i0

l,li.ro, 7l.Ell,9r9

Ir.OLro o

7.tS9,o 209,(100,000

0.350'0 10,182,00C)

7n ofTotal Loan Take

23,7 51,8i6

6 ir"l I l,ti()( !

) 1,661.6(,7

ll,Er)i,8u)

6,399,420

l.+,.r5(),7 jl5,)-,(,()l,Oal,j

i-l l,s')i.s I I

2i.1,ti(i6,667

12,016.8"+7

905,6.t+,1 -18

-- 3n44,sn,x5

0.780h

L-1.000'o

I r 6i";3 0.10,,,

0 0t)a.o

0.5E".0

0.270.i0

| .46nio

lO O' '(

i i Sr )"'o

. Q(,0"o

7 .6'80 o

0.400,0

2014 2013

Dhaka Division

Chittagong Division

Sylhct I)ivisir>n

Unclassified:Stanclerd irrclucling strr[i rnorrl>rlra

Spccial trlcrlti<,n r\ccr,urrr (S\l \)

Classificd:Substanclard

DoubtfullJad or I<>ss

Taka 7u of 'fotal l-oan -I'aka

2,920;865,32(1 100% 3,0++'511'915

00....0

201.1

7o rtf 'foral

Loan

I 00oro

00,'b

09,,0 0c'"

-

too% 2,qzo,B15,3z6 100'% 3'01{'522'9'}5

6.6 Gcotrpirrg of investnrctll,s us pcr cllrssification rttles of Bangtrrdcsh llank

2015

% of 'fotalLoan Taka 7o of Total Loan f'ak4

i--- "*.J I |,'r,, i

I ,::rll ,,u,0,,,,.,,11 :::ll I ,.,:,...r,l

__u!,I,, _3lrg,g- -----rry% --iur'zr4:-

fm f-'Tl [--=:frl i-1,'JiillHs.9f,,, 2.5')-.3;4,25 '.r5.-5'r, 2.'.)li.lliti2!)

A1L

6.7 Particulars of require d provision for investmctlts

201'5 2074

Base forProvision

Taka

Requircdprovision

Taka

IJase forProvision

Taka

Itctluircdprovision

Taka

L nclessiiicd:

Starrciard (Othcr therr S\ll:')

Staoclerd (Sltllr.)

Standard (r\gri Loan)

Spccial Nlcnti<>n r\ccount (S\[i\)

(ll;rss iFrcd:

Srrbs t ltr rtla rd

l)r>rrl>ct ul

[]ad or Lrss

Total provis ion maintained

(Shortfall)/ StrrPlus Provision

Partictrlars of invcstments

2 5.687,3 52

r-,*q[-",1"1r-'l[ .iI ,r,,.' *r,0,,ll .ro,,ut,o'' ll :lq:l:ll | | ');'oit'o("' I

--lsz,osr ,osc z:r;-w.a:q 9l'6') I '069 Ii'63 I '06:

zs{x%sftg- - n62n,r8r J'006'5e{'256 lll'3til''l'lr

@,8n J29,654,055

@- ---'z07,'z7!'608-

6.s

i) I nvcsrmcnts c<'rrsidcrcd good irl rcsPcct oF \r'llicll

thc banl<ing cornPilrv is tully sccurcd

ii) lnvcstmcrlts considercd good agnrnst rvhich thc banking cornl)anv

holds no sccttritv othcr th:tn thc cicbtor's pcr:sonal guaralltcc;

iir) lrrvtstrrrcrtts c()rlsidercd 1lr:rlC 't't'l sccr'iLccl llv pcrsr'rtal urrdctrlliinqs

of r>oc ()r n)()l c pltr:ries i't acl'l:ti' rrt ro thc |crs'r'tal guilralltcc

20 14

T'aka

3.013,.+ 10.295

1.1 12,6+r)

r>i rlrc dr:btr,r;

ir') Invcstmcrrts ach'crscll classii-rccl; provision rtt:t meintaincd rhcrc

rgairrst; --'g.z,'86-;l% --lJls'?;al

v) lrrvcstm(:rrts chrc br tlircctors or '>iticcrs

of tlrc l>';rnl<ing cornl)xltv

()r l.tr'r\ r,f thcsc citlre r scil;tratt ll or !oirltlv u itlt rtnv othcr pctsorl'

vi) lrtvtstmcrrts tluc by c('nll)arli(s tlr tlrnrs irr rvllit:h tlte dtrcctots tti

thc brnking c()mPlrlv ltavc itttcrcsts lts cltrcctots' Partrlcls

ot rnan'lging agclrts or, in thc casc of priv'rtc corupanics

rs mctrtbers

38,671,389 53.7 13,83S

20L'j

Taka

2,919,,161,168

1,1 0.t, I 58

vii) Ihxinrtrm t()tal ilm()urtt oI Invcsttnctrts incltrtling tcmPorali

ludvtttct's tnldt: ltt atlv rirlrc durirtg thc 1c:tr to dircct'rrs

r)r l)IllllilL:crs r,r' 'rfilct rs ot'thc l>lrrtking c()nll)llll) <lr irnv t'I

tlrcnr citltcr stptratcit or i<'inrlt ritrll :tnt rrtllcr 1.lcrsotts

1,791 ,l(ll .109

86,925.9,1-t

23,7 53,836

2 5,-i 3i,5 83

1 03,217

5 5,532

2,9 12,963,1 86 3S,7 52,37S2,i9i,81.t,253

Htc

z015

Taka2011

]-ala

6,9 Bills ptrrch:rscd and discor'rntcd

lliirs 1>trtclrasc<1 and discotrrrrtd cxclrrdirrg trcrsi:rl bills:

Irr side ltarrgladcslr

Outsidc B,rngladcsh

viii) Ir'laxinrurn total arnt>unt of ]nvcsrmcnts incltrdir:g tcmPorarv

advances grantcd during thc )cxr to the conrpanies or i-trms

in rvhich tltc directols of thc banking conlPxrly havc intcrcsrs

as clircctors' Partners or mltnagirlg itllcrlts ()r in ihc casc oI

privltc cttnrlrattics lts lncltrl:crs

ir) 1)t:c ii,>m Brnl<ing (.orl1':anrcs

x) ,\nrotrnt of Classificd lnvestment on whrch l)rofit

hls nt,t bccn clralgcd'

(a) I\[ovcn:cnc of (]lassificd lnvcstl'rlcrlts:

Opcninu bahrrcc

Inctcasc/(I)ecrcasc) cluring tltc yc:tr

(.losirrg llrrlarrcc

(b) l)rrvision agaitrst thc Invcstmcnt clrssiticd as

l>act,/loss at thc dxtc of balrrncc shcet

(c) ,\mt>r'rnt of profit chargccl irr susllcnsc accourrt

xr) Irtr t:stmcnts rvrittert o[t-:

- (]rrrrcrtt Year

- (lurnLrlative to-datc

- r\rlount <lI rvrittcn o[i lolns ii''r rvhich lawsuit lus i'ilcd

129,1i1.'l l5 260.161.651

lel.6;r,e58 (-19!,0536-322.991.073 129,311,11'5

250,145,615 93.611.069

3?2,t)91 ,013 1.12.4-12.0-15

4u,032.088 56.309.2u5

3 5,101.9 3l33,.101 ,t)32

35,707,932

137,315.11l 't61.612.51')

337.315.134 461,632,519

117..t53,0s0 111.611.'19 I

143,201,631 156'19ir'lll')

t6.659.17.+ l;1.82;.?+li

337.315.13-l '161,632,51',)

6,10 Nlattrrity grouping of bills discountcd and purchascd

l)avlblc rvithirr onc tnonth

Ovcr I ntoltrh btrt lcss rharr 3 nlorlths

Ovcr 3 rtr,rnrhs btrt lcss thltrr 6 mr:rrrlls

6 ttronths ()l'11l()Lc

Hte

Fixccl assets including premises, furnittrre and fixturcs

Cost:

llurniturc, fixturc and firtings

Office ccluipmcnts

Sta[f crltripments

Conrpurcr artd rchrccl ccluip:ncn:s

\[or<,r vchiclcs

[-casth, rlcl improvcntcnr

Lcss: Acctrnrulatctl dc1;rcciltiorr

liurrriturc, fisturc rnd fittings

C)iticc c.luipnrcnts

Sra[f cr.luiprrrcnts

ConrpLltcr xnd rcl:ltc(l c.luiprncnrs

i\lotor vchiclcs

L-cascholcl improvcmcnt

l)cttils arc sltowrt in ,'\nncxurc - ll.

201')'l'alca

20,140,981

10.670.59-+

I 3.5(){)

1 ,l,s 1-1.109

I,39{),00t1

2,902,785

50,.131,975

1 9.613.5 33

8,j;s.625l.l,5l)()

I .1,'i36.90 t

l,B9(),000

I ,t4l ,250

45,433,809

4,998,166

?!4.'l'aka

20,1{0,98:9.726.90'

I 3.5()()

1.3.5i)5.?5,)

, c)15 -r5{)

2.3S6.85()

48,?09,753

19.5)(r.865

3.1 63.i1 I I

I l.5il )

I i.0 I i.l 6')

2.9I5.-.;t)

1 ,20 1 .616

-l{,884,771

----)w282-

{,9u)}'.

,,,lt'+1iJ

8 Others assets

8,1 Classification of other assets

a) Incolne gcnerating othcr assets

b) Non-income getreratirlg otlrcr ;rssets

i) lnvcstrncnt ilt slt,tics,,ist,l;.i'J;rtrv c(jllll)ilrlics

_____96W9,060_ ____I2i02,493_

20t5Taka

2014

Taka

I17,23(.)

9,3(r2,520

q.39 I .+66

503.85.r

835,490,74e

l0:.la,S.l? |

752,i02,49E

968,362,060 752,502,498

i1)

ii')

i,)

v)

"i)

- ln l]rngladeslr

- Or-rtsidc Brngladcsh

Stationery, stamps, printing mirterials, ctc.

;\dvancc rent and advcrrisctncnt

l)r<>fit accrr,rcd oo investtncttt but not collcctccl,

c<>rlnrission ancl brokeragc leccivablc olt shltus a'tcl

clcl>crt rurcs. rt rrtl otltt:r i nc,,lttc rccctvalllcs :$- orc tl.2i

Sccurity dc1>osits

l)rclinrinaq, ft>rrttati,trt arrd orgurizattr>nal cspcr:scs,

renovation. dcvcloprncnt and prcpaid cxPcnses

93,970

405,000

5.820.0 t .!

308,328

1,053,927 ,915

(92.193,1';1)

968,362,060

8.3

vij) Branch adjustmcnr

viii) Suspense accoun!

r-r) Silvcr

x) ()thcrs (l\<,tc 8.3)

8.2 Profit rcccivables

Profi t'l(cccivablc from l)laccmcnt s'ith Banks

Nlark up rcccival>lcs on bill purchasctl and discountcd

Othcrs

Slrort tcrnt rcccivablc-accrlulti t::lintc ttlncc tics

Nct oi protir ort i\lorab;tlr:r

Surtd ry dcbr,trs nriscclllrrcotrs (l(ccc ir"rblr: frorrr llB;

Deposits and other accounts

Al-rvadccah current and other deposit accounts

Al-wadccah currclrt deposits

r\l falth I(:rrobar: (-ttrrert t ;\ccottrrt

[irrreiglr cu,:tcncy tlcposits

Sunclrv rlcllr,sits (i.Notc 9.1)

Pavnrcrrt t,rtler - Irrsitle Banglatlcsh

Dcrnancl clra[t pryablc - Oursidc Barrgladesh

Unclairncd l)l)/1-fll']() - Irrsidc []rngladcsh

L:nclirimcd l)l)/1'1'/I']() - Ot:tsidc [],rrrgladcslr

5,820,018 9,391,466

2,308,333

3,511,685

l. I (r.1.-l-l-f

7 )1j n.a1

r I l.:29li,l ?R: )1ll

I ,+07.1 l()

5{6.l.lli,)7 .l-18.2B9)

4,698.916

(92,193,171) ( 102,.168,321)::

273,68 I ,861

12, r-4t.794

I 19,082.9 l2

8 r .305,865

8l (r,81 6,432

,15.181,591

6,099,615

31 3.9 l5

66.729

5 r .663.8i3

l?c, 7i2 c)s':

15.62 {.196

iHT,L

I\{udaraba savings dePosits

Spccial Noticc DcPosit (SNl))

Alfaleh Srlarv .\ccourrt (.\S.\)

,\lftrlrrh ltisitrg Sta: ( \ltS

i\llal:rh ])rcrnitrnr l)ltrs (.\l'l))

N lr"rdertl>a llolal l)rotlt dclxrsits

Mudaraba term dePosits

Nludrrlba'['crm l)cposit (]'lTDlt)

Sundry dcposits

Nlargirr ,\ccounts - l,trc:rl (lurrcttcv

N[argin ;\ccounts - l.iorcigrl Currc'tcv

De1>osits from banks and othcrs

Intcr-ba,rk clcposits (i'Jote 9.2 1)

()thcr tlcPosits

81.305.865 58,143,302

20'15

Taka

1,969,191 .7 55

4,321,:r23,461

20t4Taka

2.169,095,+l-t

3,985,2'r0,132

9.1

9.2

12.8:)2,432

18.453,383

.l3,8(r I ,;3,S

2.+,281,56-r

9.2.1 Intcr-bank dePosits

Jrrntrnt lltnl< l,irnitccl

Pubali l]:rnk l..imited

Primc Il'nnk I-imitcd-I hc Ciry Bank Limitcd

Shrhi'.rlel Islanri Birnk Lr<l'

LJanli .\silr l-inrirctl

Islar:ri lltnk t)angladcsh l-td

r\lJ llanl< Linritcd

834.39 2,909

1.490.130,558

4,324,523,167

?9,820

1.094,755

39.030

59,424,586

1()7,872,177

8-16.5 2'{ I 1,013,12+

254.1 1 2,588

834,392,909

I .496.I 61 .3 l0

1.015.863.22i1

l.+31,635.1 l0

362.435.22'i

8,428,592

871.3;9.5-10

3.1 I l.8e0.ti9l

3,985,2.i0,432

l0.5lr,

3',5,1 -l.t8.33 r

l6i,4?8,6{}6

200.5-17.500

?io 0')1:i0255.805,5(r9

8?2,359,540

9 I 7.019.29.',)

913. t 6l.5SiJ

I.8C7.68 1,245

309,.+31,092

7.9 19.2.+-l

9.3 Nlatrrrity grouPing of dePosits

Rcpayablc C)n tlcnrand

llcpayablc u'itlrin 1 nronth

()vcr 1 rnonth but within 6 rnortrlrs

()vcr 6 tt.tonths but rvithin 1 l'car

()vcr 1 yc'.tr btrt withirr 5 t ears

(.rvcr' 5 r'cit::s but rvithilr 10 \'cnrs

10 ycars or lllotc

Ottrcr Liabiliticsl)rovision [or Itrve stnrcrrrs Qiorc 10'1)

Proiit st-:s1lcrtsc ilccotlnt 1rr-otc 10'3)

.\ ccrucd cxPcllscs

Profit peyable on borrou'itrgs $otc 10'5)

1,324,323,167 3,985,250,-132

10250,532,819

18.0i2,038

51 I,499

3(r,996.610

32e.6.51.055

56.10e,28)

599.411

1(r 196.63S

859,170,102

10.519

3-r1.6t6

r I .0.i8.229

586,270,6(r t

I,48(r,851,12"

899.1 .15,665

2.0i -

I .I -10.-t2-

10.6s6.u2-

460,312,-739

I .3; t.2'7.6-5

HYL

\\'ithholdinii t:tx ()n Pr()ilt 1;11 llcposits

Withholtlirrli tax

Withholtlirrli \',\1'

E,xcisc durl

Advlncc coormission on

I\ [isccllarrcous

I-,cttcr oi (luarantcc (1,/G)

10.1 Prrvision f<>r investments

Gcrrcral I)rovisionIJnlarrce :ts lt 1 .litrlLlar\'

,\tld: l)rovision madc dtrrrng thc vtar

On gcncral invcstrncnts

On Special Ntention ;\ccount (Si\l'\)

I-css: I)rovision ntl lorrgcr rcr'luircd

Nct t>F provision (rcversctl)/nmdc cltrring rl:c vcar

llllrtrtcc 1ts at 31 [)cccrnbcr

Specific Provision

Balartcc ils at 1 JatlultrY

I-css: l)rofit on invcstn)cnt rvaivct duL:irtg tlrc yctr

.r\diustmcnt u'ith Pric>r,vcar

Provision no longcr rccluircd

\Vritrcrr o[f during thc vcai

'\tld: ){cc"vcrics ()i aln()Lltlts l-\rc\ l()Llslv u.rit tt rr <ll'f

Spccitic llrovisi,,rt m'.lclc dtrring thc Ic;tr

Balancc ts at 31 l)cccrnbcr

Total provision on investments

10.2 Provision for off-balance shect exPosures

Bahncc as at 1 Jltnualy

i\dtl: l)r,rr isiorr medc dtrrinll thc Iclr

l-.css: ,\ciitrstnrcnts nlrld(: citrrirtg illc vcar

Balarrcc as xr 31 f)cccrl[.:cr

10,3 Profit susPensc account

Balancc as at 1 Janu^ry

r\tld: Anr<>uut trans[crrcd during thc ycar

I.css:

.\ lili )l Ill r t I [ 1>r,,ltt susl)c tlsc l-( cl )\'(' [cd

.\tttorttlt rvrittcn,lfi durirtg rlrc vc:tr

l)rofit on iuvcstnlcnt rvaivcr during thc vc:rr

Balancc tls at 31 Dcccnrber

312.721,262 416,987,76(t

1.1 ,206 I 6.0 ] 1.3-+( )

2015

Talca

3,296.666

1.52r.82i

. +35,709

128,5J3

1,027 .929

237,5.76

20"t4

Tr,ka

+.-+20.[3.t-r

1.771.72s

396.946

678,562

i,9 19,919

-1.734.3?()

ttI z;,zoo

I

21 ,206

I 6.0i'1.3+t t21.206

(21 .2t)6': ( l 6.0();.13 l.

r- ?O,,

329,626,3-19

46,991,158

35,707.932

t12,702,090

3,608.070

3.608,07u 31,803,1i9

329.6?6,8-t()250,532,829

250.532.829 329,65{'055

I 1.s82..t0 i

I l.sii2.-t0 I

I 1.8J2.-lo l

56.309,285

3,497,8S8

39,807.l7.l

4.7.18.65S

2,538,l9't

4,488,213

l 1,775,0s5

--- 48104088

-___..

55.080,772

l.2s0.8lir5 36 I .59-

f-_--;r.Illlltltl

t2,31 1

--?,,lo'r,r85--

3 I 7.011.59+

2015

Taka

r8.032.08s

20t4I,r]<a

5(r.309.3Si10.4 Profit sLrspcnsc and comperlslrtion susPcrrsc

Proiit st-:spertsc

(,omPinsation susl)crlsc

10.5 Profit PaYable on borrowings

Profit PaYablc on -

Spccial rroticc dcP"sir

3{) dlt's r'l)r.r(l'.lral)i rcrrn tlcposir

9r) tlavs r'llu(laral)rl rcrrlr Jcf()slt

l8t) tia.rs rrltldaril'l)a te rr:t delloslt

365 rlays nrtrdarrbe tcrnr deposit

2 Years rnudaraba tcrnr dcPosit

3 1'ears rntrderaba tcrnr de Posir

48.032.088 5(r,309'285

16.1 lB

225.1 5 I

8,814.5 ir8.831 .(ri2

I 8.2b7,135

481,1-lB

420,216

36,996,610

79,691,1 I l79,691 ,1 l l

(79,691 .1 t3)

-------:-

16.-11$

()3.931)

1 2.9()9.321

I 7.1 27.()61

15,52{,292

599.940

210,66i

4(r,496'638

i9.8r 3.0'lS,

(9,S71,0.18)

9,871.048

----:-

l1 Re tained eernings

ll'rlarrcc :ts rtt 1 .ltrltrarv

,\tliustrncrlr Fr,r lo:tn proi'isiorl

Ncr prorit / (loss) ri'r: tlrr: vc'tt

'l'ransfcrrcd to Bangladcsh countrv oit-tcc

Balance as at 31 Decernber

Lettcrs of guarantces .zctl ls r.irn

a) Cltirns Iodgcd rvitll thc ll:rnll c()nll)ilrI] not lcc()grll

Ir) ll,rn.u lirr rvllicll tllc llitnl< is crrtttitrgcntlv IL:tl>le trr rcsl)rcI ()'

!{tritl alltccs givt rr ilr't rrinli:

I)iLccrr-rrs or t:fftccrs

Covctrtmcnt

Barlks ancl otl:cr flrnanci:rl institr-rtions

Othcrs

13 Irrevocable lcttcrs ofcredit

L srtrrcc

Siliht

14 Income st'Jtcmcnt

Incomc:

Profit, discount and similar incomc

Dividcrrd incornc

(,onrmissiort, cxchlnile lnd i>trllicraqc

( ieins lcss lt'sscs arisirlg ti'rrrr clcrling st:culirics.

(i:rirrs lcss Iosscs lrisirtg tir>tl ittt'cstrrtcrlt sectlrlilcs

()rrins less It.rsses arising iroru tlcaling irr frrreigrr cut tcncics

Irtcolnc fronr non-l:arrking assets

( ) thcr ollcratilrg incornc

Prttfit lcss ltrsscs on intcrcst ratc clttngcs

12

278,1-i,1,039 510,7 17,76S

26 I, 188,88 I

l 5.1 17.6+9

2 i ,8;1,921

3,2?9,481

-zzg.1s.l.os9 540,? t7,768

67.015.99') ll l';')6'S'i I

I19,339.9 t6 ll6'8e6'S06

186.375.9'15 2-l t,{01,700

267 ,381.80 t-

24.633.03 I

7,958.1 37

9,502.329

-loo.rog,ss+

309,r'37'935

- HYc

r5

Expcnses:

Protit paiti on dcPosits

I..()sscs on itlvcslnlcnrs

Adrninisrr'.rtivc cxPcnscs

C)rlrcr opc'ra tinl; exPcnscs

Dcprcciatiorr on bankirtg assets

Incomc ovcr cxPenditure

Investment inconlc

Share of.1:rofit from financing

N Iural>aha-Stal[

Irlorlbtha Irinancing - Ll)()

Profit ttrr bill discountcd

N [ortl>the incrlmc P'\D

\[ornbllrn irrcomc trtrst rece ilrt

and disctlunting

Profit ttn Placcment rr'ith llanlcs

Prot-tt oll 'I'crnr l)llcctne nts

pr.t-rt ,rr S.tviggs Dcposit rvith llenl<s

Profit paid on dcPosits

Profit sharcd on IVlodaraba l)c1>osit

Nlodrrrrl>a llt>val l)rotlt l)cpr>ic

Alfhhh S'.rlat.v t\ccount (;\S"\)

r\lthhh l(ising Star (r\llS)

Aliahh l)rcmium l)lus (:\l)l))

i\lodarrl:a S1:ecial Notice dc1>osit

\lodtral;t tcr:m tlcl;'rsit

Income frorn investmcn( in share s/sccuritics

i\tark-up orl zcro cctul'ron l;onds

Diviclcrrd irrcomc on 1>rcfcrcnce sltarc

Comrr.rission, exchangc'artd brokerage

I3 r okcrltllc

I i('cj. c( )r'lllllission ctc'

l;,xclranlic cnrrlirtgs

19 Othcr oPcrating incorne

Scrvicc charges rccovcrcd

Docunrcnt chargcs

Clrc<1trc I)' rol< chatgcs re c<'vctcd

24.623'011 li 3l7'6'19

7.958.187 21,851'92i

---y ]tr- ---- n't61);13-

2075

Taka

2r5.316.11+

i0.762,0 t I

5,324..1t)l

1,izi ,579

273,190,535

36.271.819

-,.

2.5 j4,lr)3

187.901.5'15

28,152,490

1 1.533

16,19T ,2t1'23'r,397,168

2014

talsa

i)r. ll;. .)

-l (r.531,1i62

3.952.5j I

1,1 83'3 1 )306,811,521

1,779,955

201.788,38q

32.589.036

Itr,S{) t'551

252,961,937

3 l .9U7,6 )9

31,987'639

267,38-1,807

I 1.216,9'l-f

11,22(r'944

26{,18S,881

76

18,695.4-12

2l

25.290

1,347,151

36,618.719

1 58,689.1 I5

2r5.3'.16,12'l

18.765.161

r9

2.064

1s4.463

29,626,845

206.5(r9,010

23i,11't,'t73

t7

18

2.202,260

196.791

r.013,1 10

2t+.501

A'l c-

?0

Chargcs orr docunlcntarl' crcclit

(-r>uricr clrargcs rccovetcd

C)thcr Inct>r:rc

(iain orr disposal oi fixccl tssct

Salaries and allowances

Basic salary

[ [ousing rllorvancc

(-onvcvance allowancc

I..cavc tare allorvancc

()thcr tllowanccs

lrcstival Itorrtrs

Pcrfr:rt:ltncc l;otrtls'l'lrc Ilanl<'s contril)utiorl to proviclcrrt turrd

Clr ltllorv'lnce

(iratLriry

Rcnt, taxcs, insurance, clectriciry ctc'

llcnt, r:rtcs and tltxcs

Insurance

Clctning anll nllintcullncc

l:rlcctricitv and Iighdng

Postage, stamPs, tclccomrnunicatiolr etc'

Post:rgc and couriccs

[rlccrronic mail and on-line cortnccririlv-l'clc1;ram, [ax, tclcx, S\\1,l:l'rntl inrcrnet chargc

'l clcltlrtrrrc cll'.rtgcs

Stationcq', printing, advertiselnetl! etc'

'l:rl;lc sclttioncry

Bo<tlis arrcl pcriodicals

Printing stationct)

Cor-nputcr statiotlcrl

Pr-rbliciry

Depreciation ancl rcpair ttl bank's asscts

Depreciation of bank's asscts

['utntttrrc, tixturc arrd fitrirlgs

()fficc cqtriprncnts

Sta[f ctlttillrlrents

(.ornptrtcr lnd tcl:rtcd cquiprrtcnrs

N [otor vchiclcs

L.ctsclrr>ltl ituprrlvcnrcut

2015 zlv.Taka Taka

9(8,7 (t0 83 +.28S

6.119.5 l1 6.1i7.5ti3

15,000

9.502.329 8,2?9,482

21

I 1,057,05(;

5,622.U6

1,105,6-ls

1.7'9.405

533,9{4

3,032,316

1 , I 96,520

1,29.1.813

9-r5,000

29,917,5.18

10,6.52.735

260,313

3,391,078

76,281,244

13.0.59.635

;,223,8li0

1 .3()5.9 1 e

1 ,5 a)5.3( )l478,+30

3.0i9.15 t

1.0 t8,rl6t.2\)?,016

8{0.00(l

2'1,733,143

9.(195.116

281,146

3.1 t i.149I Rt: O()(,

1{,9 12,110

1.012,55i

5(r I .S5 t

2(r8.'19"

1() +.6S I

t2,559

607,916

i2.5;1

11,66()

'r',

23

24

130,188

36 1..]-11

2 t 1.9()5

17i.7ti I

-

1,036,570

"13,0-16

562,49S

2r- 1,301

56E.60 1

r 0.6-19

861,80+

r 25,3S3

59,5 l8

1?2.668

6(19.(r I I

395,720

539,i7"1

1,72'7,579

1913'4li l'8"r2'90-l

1-626.155 1,131,391

sl

Repair to bankrs assets

ljurrrirurc, t-tsturc antl 6rt irrgs

llcntcd ptenriscs

Officc ecluipments

Computer maintenancc

NIoror vchicles

2-, Othcr cxPenses

Bartk clrargcs, 1>rol<cregc antl ct:m missiorr

Iirrte rtltirr mcnt

SccuritY

l ravclirrg and crlnvcvance

Nlctlical cxl)cnscs

Car fucl cxl)cnscs

l..oss on s:rlt: <l[ fixcd asscts

()rircr cxpcrlscs

26 lnvestmcnt inconre receipts in cash

Profit rcccivablc as at 1 Jenurn-

PtoEt accrttcd during the i'cer:

Shlrc of prt,fit frrlrn tin:rncirrg artrl tli;cottnt

Pr<,trt rectiveblc'ls rt 3l l)ccernbcr

27 Profit P'.rid on dePosits

Protit Paveblc xs at 1 .larlutrv

Ptr>fir chargcd cluring thc vc:rr

l)rotlt shltrcd on i\[od:rrlt>r [)cprlsirs

Pr:ofit pryrlllc ts r't 3l l)cccrnbcr

Zg Fee s arrd commission receipts in cash

29 Cash paYnrcnts to emPlovecs

Salatics atld allorvrnccs

()ratLritY:

l:.nrPt' r1'ccs

30 Cash PaYnrents to suPpliers

Balance as at l Janttary

;\ccrucd cxl)cI)scs

Chargccl cltrring thc Ycrtr

Stati()ncrv. ptintinu, rdvcrtiscrrlcrlrs

20L5

Taka

20.000

31 3,893

623,135

63,631

1,020,6'19

2;?13,259

203,873

664.710

1,14i ,610

1 50,8 +0

1.622.1-10

137,iil

I e7,500

201.1

T'd<-it

t25,62i

209,9()0

4-14,439

128.351

908,31,1

2,0t)1,62()

5r,513

68i.1 32

1.15 r,87.i

1.17.()1 9

l.0l;.r11j85.32.1

3,32{,791 3,9.i2,57 t

(9,+,895,7;-t)

235.397. I 6g

91 ,61 8,27 1

I ,). l9 I ,666

251.961 .91"

91,89 5,1-5+

358,049,35?/32J19_,683-_

-16.406.618 59.26S.655

215']76'12+ 25i'l'17': j

r36.996.6 t0l ('r6,196.631't)

214.g-6.152 26",9 l9,r(.)0

?.4.623.031 l5'117,64e

19.917,5 t8 2r'7jl'143

-ls.srz.s{a 2'1,'733,113

599.1 1 3

[--r .oro. ' ;;

1

528.351 )

$.1

2015

Taka

2014

Tdsit

l{crtt. ttxcs. itlsur:lncc, t'lccttlcttr cre'

l)r,str,gt,, Sl ,1rnl), tCIcC( )nrrnLlll iC'.ltl(irl c t(.

L,cg:tl cx1>crtses

Balance as at 31 Decenlbcr

r\ccrued cKPcllscs

.11 Rcccipts frtlm orher ()pcrating acrivitics

( )tl.tcr ()ix ratlng irrcottrc

I rxclrangc citutrirlgs

lrtvcstnrcnt itlct>nlc

I-,css: Cain on disposrl oI Fxcd assct

Payrne nts for other oPcrating actif itics

llcix,irs ot' Barrl<'s lsscts

( )thcr cxltcrrscs

(i rrrtLriry:

li.nrplovccs

I\lovenrent of investments to ctlstonlcrs

Balancc lls 'ilt 31 Dccctll>et

Balnncc as at 1 Jalrtlar-Y

Q)ccrcasc)/ I ncrcase

I\Iovenrcnt of other assets

(lnctcasc) / dccreasc in othcr asscts rvhich arc not corlsidcrccl

- Svttiorrcry, st?llllps' printing matcri:rls' erc'

- .\ch'artcc rcnt lnd advcrtiscrncnt

-))rclirnirrtry, lirrnration and orlSaniz:ri"n'll cxIcttscs'

rcnrrvttiott, dcvcltrl;trtcrtt and plcpard cxPcllscs

- !]ranch acliustmcnt

- Othcrs

Adiustrnents for-

- Nct oI Profit on Nlorlbahl

. I rtrrst'cr oI Fixccl asscts

-'lrttrster of branch profrt or los:

35 lUovement of deposits and othcr accounts from other banks

B'rlartcc xs ';lt 31 f)cccrrlbcr

Ilalatrcc 1ls 1lt 'l .lan\iarv

Incrcasc/ (Dccreasc)

HYA

i 9,823,8 I ,1

{51 1 ,199) i599.'11 i)

19.911.728 77,875,312

I (r.2ii{.2'll

1.9r3.1 l5

9.5u2.319

7.958.18l

I t.9 ll.l ltt

1.8)2.90-t

s,2-r9.-Ilrl

2l,8i 1,92.i

( 1 5.000)

17.415.516 30,131,405

32

33

34

6.345.4?0 +,860,885

2 920.865.326 3.()r't'il2'93i

i3.011-522.91))''l"l6tl'{r)9'9'll( 123.657,609) 58-l' I L]'002

clscrvhc rc

1,010.6 79

5,324.791

23,260

8,9 57,520

200.5 15

i218.-137.1(16)

(10.9:2.79))

6.818,931

908.31 -r

].952,5r I

(2+.210)

I 7. I iJ6,0.+0

, l(x).i91))

5t 1,1]I,-t-ll

91.7tt8.92"

(9 I.)36,8'11.

,.s'l.0.llt

I 7.9,r6.405

(293.070.837) 53S'8l8,Eoi{

831.392,909

'8?2.359.5'10)

(37.966,63 l)

87 2.359,540

(123.3rr2,56-)

{{8.996,97i-

2015

Talsa

3.490,130.5)8

2074

T'.rka

i.1 11.390.s9136

37

I\{ovenrcrtt of deposits and othcr accounts frtlrn customcrs

Baltncc as lr 31 l)ccemller

Balarrce tts xt 1 January

(Decreasc)/ Increasc

lvlovemcnt of other liabiliries

L:crcasc/(dccreasc) irl othcr Iiebilitics rvhich are not consicicrcd

- l)rovision tor <>ff--balarrcc shcct cxlrosures (Notc 10'2)

- l)rofir stlspcnsc ilcc()unt

- \\'irltlt,,lthlrg rrlr (,rl Pr()tlt 'rtt tlci't'sti'

- \\jithlrolthng tax

- \\ ithholdrng \rA1'

- Protrision ti>r gratuitY

- Iixcisc durY

- i\clvatrcc conrmission on Lettcr oi()urr:rntec () "/O)

- Itlisccllarrcous

Proceecls fronr sale / rctle nrptiotr of secu ritics

lledcmprion of prcfctcrtcc slrarcs

S'l'S l-Ioldiog Limitcd

Ilrrc lhrrk Limitcd

Related Parties'l rartsitct io tis rvith l<cl' tllxtlilll(:I llc I ) t 1lt "'son rrcl

Kcy tttltluttlctncl)t PCIs()llncl ltlvc tr;tlts:tcictl n itll

['Iotrsc fin:rncc

Car tirrartcc

(3.112.8r0-8el) (3.I8e.7]S'83e'

377,239,666 (76'8t!37|

elscrvhcrc

(8.2;7 .191')

(1.114.178)

(255.9r)5)

38,7 (r3

(5s0,02e)

(891,990)

( il .832.401)

r.218.51i

r l 6 +.631.

,3r1.-ll)o-

52,1lJ 1

( +.2 l7.89fl:

(100,i 1 ())

31 ,192

(82;.?3tt)

3rl

39

(s,0,15,832)

(16,106,3@)__-11@

tl,c Branch tlrrins tlrc vci'lr:ts ri)ll()\\'s

12,216.9r.1 ll.9-i l'0- '1

5(,6,315 815.21 3

-rz.zs3.so8

1-1,806,288

Noirrrplrir.mentlosscshavclrccnrccrlrcledageirrstbahrrccsrlutsrair<lir:gduringthcllcrirldwitlrkcl,nr:lttauctttctt:t:crstltr,lcl'andnr>spcctttcallorrancclrasb"c,rrrraclcftlriml.lairlrrcntlclsscsr>lrl>allrrrccsrvitlrkevrnntlagcnlcllr

ir.r*,,,,,,.1 rr thc Pcrr"d en''l'

l.:c\ rrilt)lgcmcllt Pcls()rlncl contl'cttslttiotl irrl tltt: t car c<.rnrllrisctl

Slrort-t,:t rtl cmplot'cc [:crtc iits

Providcrrt fund

(i ratuiry

1.962.8S 1

223.i )1

186,161

5,373,093

-1.+ '0.Isl203.-'ls

169,i9'l

+.843.72-1

-,.

t0

Othcr rclated Party transactlons'I lrt rc rvas no tretlsaclion t'irh tlrc tclarccl llartr'

Ntrnrber of crnPlol'ces'l ltc rrtrnrl>cr .,[ ",,,1'lt'vtct

cngrgcd [or thc rvlrolc

ot l'k 36,000 or rbovc *'crc 37 (2011: 36)'

Enrplol'ec rclated fratrcl'l'l,erc *as no fraucl <>ccurrcd during tlrc vcar 2015

Events after the rcPorting Pcriod

Nortc.

rlurinq rhc rcpoltirru pcriocl

vcar or prrt thcrcr>[ r'u'lto tcccivctl l l()t:tl vcaIlY r( l]ltll'l('riltl()r'1

'11

42

qtc

at Deccmhcr 31, 201

ru

Bank Alfalah [.imitedIlangladcsh Opcrarions

Moliihccl Islamic Ilanking IlranchLiquidit-v Statemcnt

(Analvsis of maturity of assers and liatlilities)

38,119,324

Anncxure-A

- 373,019,11s

{00,000.r x x I

r9,-1.{2,326 2,920,865,326. 4,99fj.1(rrr

9(,ll,362.lxrtl

CrslrItllancc \\1rh orhcr barrks rnd 6neocral institutions

l)hccrnLrl rvirh [:arrks an<l othcr fi,ran,.iel iostitutiorrs

Irrvc.rrtrer:ts irr sharcs :rnd scculil;(:t

Irixcd :rsscts includirrg Prcmiscs. [urniturc alrd fixturcs( )llr(r :r{scrs

Nrxr barrkirrq nsscts

I-iahiliticsllorrorvurgs trorn lSengladcsh lllnk. r.rrhcr benks, finencial

institutron:r :rnd agcnts

I)cposits end othcr eccounts

()thcr habilrrics

Toral liahiliriesNcr liqui<tiry gap

38,427,652 471,812,1)99 3,Lrr,122,718 99A,$9,035 19,j42,321 4,667,244,73t)

2,522.024,538 r.144.434,654 419,635,683 IJ,4211,592

. 33{,89r,85.1

1U),000J)00

7r,ttl2,999 2,804,222,S6.{

308,3213

25,487,137

4,998,r66968,053,732

5,382.731 1,171,004 16,996.61) 298,564,911

- 4,324,523,46i- 3.{2,72t,261

2,s27,407,269 1,346,211,658 4 ,632,2.93 306,993,509 - 4,667,244,731)

(r,488,r?r,61?) (

Hyc

(( (( l((((((((((((

Bank Alfalah LinritcdBangladesh OPerations

Motiihecl Islamic Banking Brarrch

Schedulc of fixcd assets including premiscs, furniture and fixtures

Anncxrtrc-B

' 19,6 /3,513 467 ,454

(s54,803) 8,271i,625 2,391,969

- 13,500

422,012 13,816,e01 911 ,2ot)

19,550,865 122.66t1

8,1 63,81 1 669,611

l 3,500

13,019,169 395,1?-tt

19,420,571 1 30,288

7,802,470 361,34 I

l 3,500

12,803,264 21 5,90s

(61(r,a0r)

as at Decetnber 31' 2015

20,140,987

10,(r70,594

1 3,500

liurlintrc, [rxtttre an<l httilrgs

()ffice ccluiJrrncots

Staff equipmcttts

Oomputer antl rrlntccl ct;ttipmcnts

It.{r>tor vchiclcs

Leaschold itrtprovetlrcr't t

[]urnirurc, fi xturc :rrrC {ittirtgs

( )f6ce cquiprnents

Sta[f cquipnrcrrts

O<xnputcr :ttttl relrtrctl cquiprnctlts

l\[ot<>r vchiclcs

l,caschold imprrtvt'ntr'trt

20,140.9ti7

9,726,e()7 1,560,087

r 3.500

20,029,661 I 1 1,320

8,506,707 1,220,200

1 3,500

I 3,303,I 59 202,600

" o15 750

19,550,B65

- t1,163,u1l

. 13,500

I 3,50),7 ie 1 ,108,350 1 4'81 4'1 09

2,9.15,i50 1,t190,000 (2'935,75(D l'890'000

2,3ti6,85() 515,935 - 2,902'785

48J0rJs3 s,,-

2,e35,750 (1,045,750) 1,890'000

1.201.616 539,574 - 1,741'250 1,161'535

l02()

20

25

25

20

20,140,987

9,126,901

1 3,500

- I 3,505,759

. 2,9:i5,750

?-.1t16.85u 2,386'859

ffi - 48,709,7s3

2,935,750 2,935,750

72i,89s 4i5,781 1,201,6i6 -l'-1!5-'-!lj43.111.456 1,183,315- - 41,ti84,?71 3'824'982

10

20

20

25

25

)(l

590,122

1,563,096

I 3,019.169 486,590

!flritten DorvnValue as at

December 31,

2075

Balancc as at

Decenrber 31,

2015

Balauce as

at January01, 2015

Balance as at

December 31,

2075

Additionsduring the

Balancc as at

January 01'

20r5

rWrirtcn DownValue as at

Dccember 31,

2014

Balance as at

Deceruber 31,

20t4

Balence as

at January01,2074

Balancc as at

Decembcr 31,

2014

Balance as at

January 01,

2014