Dutch-Bangla Bank Limited a Bangladeshi-European joint venture scheduled bank with equity participation from the Netherlands Development Finance Company. It started banking operations in Bangladesh on 3 June 1996. The authorised and paid up capital of the bank is Tk 400 million and Tk 180 million respectively. The paid up capital represents the face value of 1.8 million ordinary shares of Tk 100 each and is fully paid by the sponsors. The equity of the bank was Tk 244.96 million in 1999 and its reserve fund was Tk 22.54 million in 2000.

The bank conducts all types of commercial banking activities including customer services related to local and foreign remittances but its core business is trade financing. It also extends short and medium-term loans to industrial undertakings on a limited scale. Innovative products on credit and deposit scheme introduced by the bank are commission free remittance, the 'Money Plant' scheme, monthly term deposits, small credit facilities for shop owners, small-scale taxi cab loans, small-scale transport loans and consumer credit. Foreign Exchange business dealt by the bank was equivalent to Tk 5,817 million in 1999 and the transactions included export servicing (Tk 1,177 million), import financing (Tk 4,413 million), and remittance services (Tk 227 million). The bank has correspondent relationships with 17 foreign banks

In addition to its banking activities, Dutch-Bangla Bank Limited takes part in different national activities promoting sports, culture, social awareness, etc. Participation in these activities as sponsors is part of its business development policy.

An 8-member board of directors comprising a chairman and four representatives from local sponsors and three representatives from the Netherlands Development Finance Company oversees the management of the bank. The managing director is appointed by the board with the approval of bangladesh bank. He runs the bank's day-to-day business with the assistance of its 248 other employees working in various grades. In December 2000, the bank had 9 branches in different towns of Bangladesh.

As on 31 December 2000, total deposits mobilised by the bank amounted to Tk 6,073.3 million and total loans and advances stood at Tk 4,588.1 million was disbursed mainly to small and medium sized enterprises. On that date, its classified loan was Tk 33 million (0.72% of total). In 2000, the bank's investment was Tk 842.31 million, which comprised Tk 710 million in treasury bills, Tk 1.15 million in shares and securities, Tk 30 million in debentures of investment corporation of bangladesh (ICB) and Tk 100 million in other government securities. On the other hand, the bank borrowed Tk 90 million in 2000 from the inter-bank call market. Total assets of the bank in that year were valued at Tk 7,000 million and its off-balance sheet activities accounted for Tk 3,362 million. During 2000, the gross income of the bank was Tk 766.6 million against gross expenditure of Tk 523.5 million, resulting in an operating profit of Tk 243.1 million and a net profit of Tk 86.6 million. Return on equity of the bank in 1999 was 13.77%. [S M Mahfuzur Rahman]