independent auditors’ report to the shareholders of … · independent auditors’ report to the...

Independent Auditors’ Report To the Shareholders of

NRB Global Bank Limited

We have audited the accompanying financial statements of NRB Global Bank Limited (NRBGBL) (the “Bank”) which

comprise the Balance Sheet as at 31 December 2016, profit and loss account, statement of changes in equity and

cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory

information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements of the Bank that give

a true and fair view in accordance with Bangladesh Financial Reporting Standards (BFRS) as explained in Note 2 and

for such internal control as management determines is necessary to enable the preparation of financial statements of the

Bank that are free from material misstatement, whether due to fraud or error. The Bank Companies Act, 1991(as

amended in the year 2013) and the local central bank (Bangladesh Bank) Regulations require the Management to ensure

effective internal audit, internal control and risk management functions of the Bank. The Management is also required to make

a self-assessment on the effectiveness of anti-fraud internal controls and report to Bangladesh Bank on instances of fraud and

forgeries.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements of the Bank based on our audit. We conducted our

audit in accordance with Bangladesh Standards on Auditing (BSA). Those standards require that we comply with ethical

requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements

of the Bank are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial

statements of the Bank. The procedures selected depend on our judgment, including the assessment of the risks of

material misstatement of the financial statements of the Bank, whether due to fraud or error. In making those risk

assessments, we consider internal control relevant to the entity’s preparation of financial statements of the Bank that give a

true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also

includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates

made by management, as well as evaluating the overall presentation of the financial statements of the Bank.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements of the Bank prepared and maintained according to the Bangladesh Accounting

Standard (BAS) and reported in accordance with the Bangladesh Financial Reporting Standard (BFRS) as explained in note-2

give a true and fair view of the financial position of the Bank as at 31 December 2016, and of its financial performance

and cash flows for the year then ended and comply with the Companies Act 1994 and Banking Companies Act 1991 (as

amended in the year 2013).

Report on Other Legal and Regulatory Requirements In accordance with the Companies Act 1994, Securities and Exchange Rules 1987, the Bank Companies Act 1991(as

amended in the year 2013) and the rules and regulations issued by Bangladesh Bank, we also report that:

(i) we have obtained all the information and explanations which to the best of our knowledge and belief were

necessary for the purpose of our audit and made due verification thereof;

(ii) to the extent noted during the course of our audit work performed on the basis stated under the Auditors’

Responsibility section in forming the above opinion on the financial statements of the Bank and considering the

reports of the Management to Bangladesh Bank on anti-fraud internal controls and instances of fraud and

forgeries as stated under the Management’s Responsibility for the Financial Statements and Internal Control:

(a) internal audit, internal control and risk management arrangements of the Bank as disclosed in Note 2 to the

financial statements appeared to be materially adequate;

(b) nothing has come to our attention regarding material instances of forgery or irregularity or administrative error

and exception or anything detrimental committed by employees of the Bank and its related entities;

(iii) in our opinion, proper books of account as required by law have been kept by the Bank so far as it appeared from

our examination of those books and proper returns adequate for the purpose of our audit have been received from

branches not visited by us;

(iv) the balance sheet and profit and loss account of the Bank together with the annexed notes dealt with by the

report are in agreement with the books of account and returns;

(v) the expenditures incurred were for the purpose of the Bank’s business;

(vi) the financial statements of the Bank have been drawn up in conformity with prevailing rules, regulations

and accounting standards as well as related guidance issued by Bangladesh Bank;

(vii) adequate provisions have been made for investment and other assets which are in our opinion, doubtful

of recovery and as per tripartite meeting held on February 23, 2017 & letter issued by Bangladesh Bank vide letter

no DBI-4/44(3)/2017-499 dated March 21, 2017

(viii) the records and statements submitted by the branches have been properly maintained and consolidated

in the financial statements;

(ix) the information and explanations required by us have been received and found satisfactory;

(x) we have reviewed over 80% of the risk weighted assets of the Bank and we have spent around 2,520 person

hours during the audit; and

(xi) Capital to Risk Weighted Assets Ratio (CRAR) as required by the Bangladesh Bank has been maintained

adequately during the year.

2016 2015

PROPERTY AND ASSETS

Cash 3

Cash In hand (including foreign currencies) 315,266,932 209,627,510

Balance with Bangladesh Bank and its agent bank (s) (including foreign currencies) 2,336,515,101 1,655,781,448

2,651,782,033 1,865,408,958

Balance with other banks and financial institutions 4

In Bangladesh 4,765,147,247 3,219,026,038

Outside Bangladesh 79,196,370 40,741,542

4,844,343,617 3,259,767,580

Money at call and short notice 5 20,000,000 230,000,000

Investments 6

Government 4,573,728,394 3,101,960,269

Others 428,575,000 524,279,792

5,002,303,394 3,626,240,061

Loans and advances 7

Loans, cash credits, overdrafts, etc. 26,770,994,107 13,974,075,381

Bills purchased and discounted 8,187,291,357 6,872,055,245

34,958,285,465 20,846,130,626

Fixed assets including premises, furniture and fixtures 8 630,124,182 532,047,421

Other assets 9 1,159,913,477 1,070,435,322

Non - banking assets 10 - -

Total assets 49,266,752,168 31,430,029,968

LIABILITIES AND CAPITAL

Liabilities

Borrowings from other banks, financial institutions and agents 11 757,085,065 48,807,071

Deposits and other accounts 12

Current deposits and other accounts 1,716,672,837 1,123,072,706

Bills payable 144,609,092 60,351,751

Savings bank deposits 1,549,816,494 743,974,875

Fixed deposits 39,466,980,543 24,757,839,736

Bearer certificate of deposit - -

Other deposits 2,295,159 1,839,931

42,880,374,125 26,687,078,999

Other liabilities 13 1,012,837,413 483,527,868

Total liabilities 44,650,296,603 27,219,413,937

Capital / Shareholders' equity

Paid up capital 14.1 4,250,000,000 4,250,000,000

Share premium - -

Statutory reserve 15 189,374,321 30,910,902

16 9,880,103 27,051,726

Surplus/(deficit) in profit and loss account 17 167,201,141 (97,346,597)

Total shareholders' equity 4,616,455,565 4,210,616,031

Total liabilities and shareholders' equity 49,266,752,168 31,430,029,968

NRB Global Bank LimitedBalance Sheet

Amount in Taka

Revaluation reserve

As at 31 December 2016

NotesParticulars

3

2016 2015

OFF - BALANCE SHEET EXPOSURE

Contingent liabilities

Acceptances and endorsements 18.1 813,190,583 268,553,728

Letters of guarantee 18.2 3,860,949,742 929,792,581

Irrevocable letters of credit 18.3 234,691,928 292,781,141

Bills for collection - -

Other contingent liabilities - -

4,908,832,253 1,491,127,450

Other contingent liabilities

Value of travelers cheques on hand - -

Value of Bangladesh Sanchaya Patra on hand - -

- -

Other commitments

Documentary credits and short term trade-related transactions - -

Forward assets purchased and forward deposits placed - -

Undrawn note issuance and revolving underwriting facilities - -

Undrawn formal standby facilities, credit lines and other commitments - -

Liabilities against forward purchase and sale - -

- -

Total off-balance sheet items including contingent liabilities 4,908,832,253 1,491,127,450


These financial statements should be read in conjunction with the annexed notes.

NotesParticulars

Balance Sheet

Amount in Taka

4

2016 2015

Interest income 4,287,463,739 2,827,780,425

Interest paid on deposits and borrowings, etc. 2,557,559,670 1,876,519,837

Net interest income 1,729,904,069 951,260,588

Investment income 22 305,296,458 217,363,422

Commission, exchange and brokerage 23 70,500,747 48,901,002

Other operating income 24 29,424,182 30,723,086

Total operating income (A) 2,135,125,456 1,248,248,098

Salary and allowances 25 455,046,916 337,447,303

Rent, taxes, insurance, electricity etc. 26 280,830,460 215,072,045

Legal expenses 27 761,547 776,498

Postage, stamp, telecommunication etc. 28 13,176,307 10,993,433

Stationery, printings, advertisements etc. 29 13,526,511 27,610,018

Managing Director's salary and fees 30 10,880,000 10,137,097

Directors' fees 31 17,059,489 2,886,702

Auditors' fees 32 316,250 287,500

Charges on loan losses - -

Depreciation and repair of Bank's assets 33 140,493,067 109,476,578

Other expenses 34 280,032,040 222,312,306

Total operating expenses (B) 1,212,122,587 936,999,480

Profit / (loss) before provision (C=A-B) 923,002,869 311,248,618

Provision for loans and advances 35

Specific provision (22,338,007) 41,677,700

General provision 135,886,833 98,514,998

Provision for off-balance sheet items 34,249,896 3,882,467

Provision for diminution in value of investments (17,112,948) 17,112,948

Other provisions - -

Total provision (D) 130,685,774 161,188,113

Total profit / (loss) before taxes (C-D) 792,317,095 150,060,505

Provision for taxation 36

Current tax 383,936,063 125,826,698

Deferred tax (14,630,125) 5,261,985

369,305,938 131,088,683

Net profit/(loss) after taxation 423,011,157 18,971,822

Retained earnings brought forward from previous years (97,346,597) (86,306,318)

325,664,560 (67,334,496)

NRB Global Bank Limited Profit and Loss Account

For the year ended 31 December 2016

20

Amount in Taka

21

Particulars Notes

5

2016 2015

Appropriations:

Statutory reserve 158,463,419 30,012,101

General reserve - -

Dividends etc. - -

158,463,419 30,012,101

Retained surplus/(Deficit) 17 167,201,141 (97,346,597)

Earnings per share (EPS) 41 1.00 0.04

NotesAmount in Taka

Profit and Loss AccountFor the year ended 31 December 2016

Particulars

These financial statements should be read in conjunction with the annexed notes

Chairman Director Director Managing Director

Auditors' report to the Shareholders

Shafiq Basak & Co.

Chartered Accountants

See our annexed report of event date

Date:Dhaka

28-Mar-17

6

2016 2015

A) Cash flows from operating activities

Interest receipts in cash 4,544,068,114 3,002,806,805

Interest payments (2,438,558,169) (1,729,615,405)

Dividend receipts 17,031,390 15,909,722

Fees and commission receipts in cash 70,500,748 48,901,002

Recoverable on loans previously written-off - -

Cash payments to employees (465,926,916) (347,584,400)

Cash payments to suppliers (13,526,511) (27,610,018)

Income tax paid (152,429,042) (71,189,900)

Receipts from other operating activities 37 29,424,182 30,723,086

Payments for other operating activities 38 (530,387,498) (414,917,160)

1,060,196,299 507,423,732

Increase / (decrease) in operating assets and liabilities

Statutory deposits - -

(1,488,830,648) (2,888,670,914)

Loans and advances to other banks - -

Loans and advances to customers (14,112,154,839) (10,607,932,116)

Other assets 39 28,968,596 (134,009,631)

Deposits from other banks 2,400,000,000 (1,450,000,000)

Borrowing from Bangladesh bank and other banks 708,277,995 9,320,158

Deposits from customers 13,674,293,625 14,083,247,922

Other liabilities account of customers - -

Trading liabilities - -

Other liabilities 40 29,317,833 15,168,643

1,239,872,562 (972,875,938)

Net cash from/used in operating activities 2,300,068,861 (465,452,206)

B) Cash flows from investing activities

Proceeds from sale of securities 404,279,792 -

Payment for purchase of securities (308,575,000) -

Purchase / sale of subsidary - -

Purchase of property, plant and equipment (234,715,441) (151,378,542)

Proceeds from sale of property, plant and equipment - -

Net cash used in investing activities (139,010,649) (151,378,542)

C) Cash flows from financing activities

Receipts from issue of sub-ordinated bond - -

Receipts from issue of ordinary share - -

Payment for redumption of loan capital and debt security -

Dividend paid - -

Net cash flows from financing activities - -

Cash generated from operating activities before changes in operating assets

and liabilities

NRB Global Bank LimitedCash Flow Statement


Particulars NotesAmount in Taka

Purchase of trading securities

7

2016 2015

D) Net increase / (decrease) in cash and cash equivalents (A+ B + C) 2,161,058,212 (616,830,748)

E) Effects of exchange rate changes on cash and cash equivalents - -

F) Cash and cash equivalents at beginning of the year 5,355,719,338 5,972,550,086

G) Cash and cash equivalents at end of the year (D+E+F) 7,516,777,550 5,355,719,338

Cash and cash equivalents at end of the year

Cash in hand (including foreign currencies) 315,266,932 209,627,510

Money at call and short notice 20,000,000 230,000,000

Reverse repo - -

Prize bonds 651,900 542,800

Balance with Bangladesh Bank and its agent bank (s)(including foreign currencies) 2,336,515,101 1,655,781,448

Balance with other banks and financial institutions 4,844,343,617 3,259,767,580

7,516,777,550 5,355,719,338


Particulars NotesAmount in Taka


Cash Flow Statement

8

Balance as at 1 January 2016 4,250,000,000 - 30,910,902 - 27,051,726 - (97,346,597) 4,210,616,031

Changes in accounting policy / last year's profit - - - - - - - -

Surplus / deficit on account of revaluation of properties - - - - - - - -

Surplus / deficit on account of revaluation of investments - - - (17,171,623) - - (17,171,623)

Adjustment of last year revaluation gain on investments - - - - - - - -

Currency translation differences - - - - - - - -

Net gain and losses not recognized in the income statement

Net profit for the year - - - - - - 423,011,157 423,011,157

Dividends (Bonus shares) - - - - - - - -

Cash dividend - - - - - - - -

Share premium - - - - - - - -

Issue of share capital - - - - - - - -

Appropriation made during the period - - 158,463,419 - - - (158,463,419) -

Balance as at 31 December 2016 4,250,000,000 - 189,374,321 - 9,880,103 - 167,201,141 4,616,455,565

Balance as at 31 December 2015 4,250,000,000 - 30,910,902 - 27,051,726 - (97,346,597) 4,210,616,031

Retained

earnings/

(Losses)

TotalStatutory

reserve

Paid-up

Capital

Particulars

Amount in Taka

NRB Global Bank LimitedStatement of Changes in Equity

Revaluation

reserveShare premium


Revaluation

gain / loss on

investments

F.C. Translation

gain


9

Amount in Taka

Up to 1 month 1-3 months 3-12 months 1-5 years Above 5 years Total

Assets:

Cash in hand 315,266,932 - - - - 315,266,932

Balance with Bangladesh Bank and its agent bank (s) (including foreign currencies) 175,910,651 - - - 2,160,604,450 2,336,515,101

Balance with other banks and financial institutions 389,742,145 2,001,551,472 2,400,000,000 53,050,000 - 4,844,343,617

Money at call and short notice 20,000,000 - - - - 20,000,000

Investments 833,957,799 1,040,145,780 729,674,064 1,878,961,947 519,563,804 5,002,303,394

Loans and advances 5,990,279,129 9,957,794,258 15,241,984,003 3,261,641,822 506,586,252 34,958,285,464

Fixed assets including premises, furniture and fixtures - - - 409,580,718.57 220,543,464 630,124,182

Other assets 463,965,391 324,775,774 162,387,887 127,590,482 81,193,943 1,159,913,477

Non banking assets - - - - - -

Total assets (A): 8,189,122,047 13,324,267,283 18,534,045,954 5,730,824,970 3,488,491,913 49,266,752,168

Liabilities:

Borrowings from Bangladesh Bank, other banks, financial institutions and agents 660,000,000 7,994,500 84,545,110 4,545,455 - 757,085,065

Deposits 6,772,361,357 11,650,638,990 17,210,562,775 4,524,791,791 1,856,809,634 42,015,164,547

Other accounts 103,825,150 259,562,874 173,041,915 129,781,436 198,998,203 865,209,578

Provision and other liabilities 121,540,489.57 303,851,223.92 202,567,482.62 151,925,611.96 232,952,605.01 1,012,837,414

Total liabilities (B): 7,657,726,997 12,222,047,588 17,670,717,283 4,811,044,294 2,288,760,442 44,650,296,603

Cumulative net liquidity gap (A-B): 531,395,051 1,102,219,696 863,328,671 919,780,676 1,199,731,472 4,616,455,565


ParticularsMaturity

NRB Global Bank LimitedLiquidity Statement

(Analysis of maturity of assets and liabilities)As at 31 December 2016

10

1

1.1

2

2.1

2.2

-

-

2.3

-

-

2.4

2.5

2.5.1

Government Treasury Bills and Bonds designated as ''Held to Maturity (HTM)'' at present value using amortization concept.

The preparation of the financial statements of the Bank in conformity with BFRSs require management to make judgments, estimates and

assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses. Actual

results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis considering business realities. Revisions of accounting

estimates are recognized in the period in which the estimate is revised and in any future period(s) affected.

NRB Global Bank Limited ("the Bank") was incorporated as a public limited company in Bangladesh under Companies Act, 1994 with the

registered office at Khandker Tower, 94 Gulshan Avenue, Gulshan-1, Dhaka-1212. The Bank commenced banking operation on 23

October 2013 by obtaining license from Bangladesh Bank on 5 August 2013 under section 32(1) of the Bank Companies Act

1991(amendment up to 2013).The number of branches of the Bank was 37 (Thirty Seven) located in different areas of Dhaka ,

Chittagong,Khulna, Rajshahi and Sylhet as on 31 December 2016. Currently the Bank does not have any Off-shore Banking Unit (OBU)

and subsidiary company.

The principal activities of the Bank are to provide a comprehensive range of financial products (loans and deposits) and services, personal

and commercial banking, trade services, cash management, treasury, securities and custodian services. There have been no significant

change in the nature of the principal activities of the bank during the reporting period.

The financial statements of the Bank comprise of Balance Sheet, Profit and Loss Account, Cash Flow Statement, Liquidity Statement,

Statement of Changes in Equity and relevant explanatory notes and disclosures.

The financial statements of the Bank as at and for the year ended have been prepared under the historical cost convention except for

Government Securities which are stated at fair value and in accordance with the Bank Companies Act 1991 (Amendment upto 2013),

BRPD circular no.14 dated 25 June 2003, the Companies Act 1994 and other rules regulations and laws applicable for the Bank.

The financial statements of the Bank have been prepared in accordance with the measurement and recognition criteria of International

Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) adopted by the Institute of Chartered Accountants of

Bangladesh (ICAB) as Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS).

The financial statements have been prepared on the historical Cost basis except for the following material items:

Basis of measurement

Loan loss provision

Deferred tax assets/liabilities

Materiality, aggregation and offsetting

Assets and basis of their valuation

Cash and cash equivalents

Cash and cash equivalents includes notes and coins in hand and at ATM, unrestricted balances held with Bangladesh Bank and its agent

bank, balance with other banks and financial institutions, money at call and short notice and prize bond which are not ordinarily

susceptible to change in value.


Notes to the Financial Statements

As at and for the year ended 31 December 2016

Significant accounting policies and basis of preparation of financial statements

Presentation and basis of financial statements

The Bank and its activities

The Bank aggregates each material class of similar items and presents separately which are dissimilar in nature or function those are

immaterial. The Bank did not offset assets and liabilities or income and expense unless required or permitted by BAS/BFRS.

Government Treasury Bills and Bonds designated as ''Held for Trading (HFT)'' at present value using marking to market concept with

gain credited to revaluation reserve but loss charged to Profit and Loss Account;

Use of estimation and judgement

Key estimates include the following:

11

2.5.2

Lower of cost and

market value

Any loss is charged in P&L;

Unrealized gain not recognized in accountsShares Cost

Investment in unlisted securities is reported at cost under cost method.

Investment in listed securities

These securities are bought and held primarily for the purpose of selling them in future or held for dividend income. These are reported at

cost. Unrealised gains are not recognised in the Profit and Loss Account as per BAS 18 "Revenue".

In accordance with BRPD circular no.14 dated 25 June 2003, provisions should be made for any loss arising from the diminution in value

of investments. Subsequently as per DOS circular no. 04 dated 24 November 2011, provisions may be made for any loss arising from the

diminution in value of investments after netting of gain.

Investment in un-listed securities

Govt. Treasury Bill / Bond (HFT)Loss to Profit and Loss Account (P&L), gain to revaluation

reserve till maturity.

Increase in value to equity and decrease in value to Profit &

Loss

None

None

None

None

Face value

Recording of changesMeasurement after

initial recognition

Debenture

Market value

Amortised value

Cost

Initial

recognition

Investments primarily held for selling or trading are classified in this category. After initial recognition, investments are marked to market

on weekly basis. Decrease in the book value is recognised in the Profit and Loss Account and any increase is transferred to revaluation

reserve account. The Bank did not have any HFT securities during the reporting period.

Government securities

Held to Maturity (HTM)

Held for Trading (HFT)

Assets and liabilities in foreign currencies as at 31 December 2016 have been converted into Taka currency at the average of the

prevailing buying and selling rates of the relevant foreign currencies at that date except balances with other banks and financial

institutions which have been converted as per directives of Bangladesh Bank vide its circular no. BRPD (R) 717/2004-959 dated 21

November 2004.

Differences arising through buying and selling transactions of foreign currencies on different dates of the year have been adjusted by

crediting/debiting exchange gain or loss account respectively.

Investments have been initially recognised at cost, including acquisition charges associated with the investment. Premiums have been

amortised and discounts accredited, using the effective or historical yield method. Government Treasury Bills and Bonds (categorized as

HFT or/and HTM) are accounted for as per Bangladesh Bank DOS circular letter no. 05 dated 26 May 2008 and DOS circular no. 05

dated 28 January 2009.

Investments which are intended to be held to maturity are classified as “Held to Maturity”. These are measured at amortised cost at each

year end by taking into account any discount or premium in acquisition. Amortised amount of such premium are booked into Profit and

Loss Account or discount is booked to reserve until maturity/disposal.

Investments

Foreign currency

Foreign currency transactions have been converted into equivalent Taka currency at the ruling exchange rates on the respective date of

such transactions as per BAS 21 “The Effects of Changes in Foreign Exchange Rates”.

Investment class

Govt. Treasury Bill / Bond (HTM)

Cost

Cost

Prize bond

Value of investments has been enumerated as follows:

12

2.5.3

UC SMA SS DF BL

2% 2% 20% 50% 100%

5% 5% 20% 50% 100%

2% 2% 20% 50% 100%

2.5% 2.5% 5% 5% 100%

0.25% 0.25% 20% 50% 100%

1% 1% 20% 50% 100%

1% - - - -

2.5.4

-

-

-

40

10

5

5

5

20.00% 5

5

5

20.00%

Estimated useful lives (Years)

20.00%

Depreciation is charged at the rates stated below on all fixed assets on the basis of estimated useful lives as determined in the fixed asset

policy of the Bank. In all cases depreciation is calculated on the straight line method. Depreciation on addition of fixed assets is charged

when the assets is available for use and ceases at the month when the assets are disposed. No depreciation is charged on building under

construction until the usage of the assets.

Fixed assets

20.00%

Loan to brokerage house, merchant banks, stock

dealers

Short-term agri-credit and micro credit

Small and medium enterprise finance

Computer and peripherial

Motor vehicle

Fixed assets except land are stated at cost less accumulated depreciation as per BAS-16 "Property, Plant and Equipment".

The cost of an item of fixed assets is recognized as an asset if it is probable that future economic benefits associated with the item will

flow to the entity, and the cost of the item can be measured reliably.

The cost of an item of fixed assets comprises:

Other advances

Off balance sheet items

Particulars of fixed assets

Subsequent costs

Depreciation

its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates;

Subsequent costs are capitalized only when it is probable that the future economic benefits associated with the costs will flow to the entity

and cost can be measured reliably. The carrying amount of the replaced portion is derecognized. The costs of day to day servicing of

fixed assets i.e. repairs and maintenance is charged to profit and loss account as expense when incurred.

any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the

manner intended by management; and

Recognition and measurement of fixed assets

Rate of depreciation/ amortisation

(per annam)

General provision Specific provision

Loans and advances are stated at gross amount. General provisions on unclassified loans and contingent assets as well as specific

provisions for classified loans and interest suspense thereon are shown under other liabilities. Provision against classified loans and

advances is made on every quarter end and as per instructions contained in BRPD circular no. 14 dated 23 September 2012, BRPD

circular no. 19 dated 27 December 2012, BRPD circular no. 05 dated 29 May 2013, BRPD circular no. 16 dated 18 November 2014 and

other instructions from time to time. The rate for provisions are as follows:

Consumer

House building and professionals

to setup business

Total loans and advances

Other than housing finance &

professionals to setup business

Loans and advances

Depreciation rates used for each type of fixed assets are as follows:

20.00%

the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

ATM

Furniture and Fixtures

Machineries and equipment

Software

Buildings

Library books and journals

2.50%

10.00%

20.00%

13

2.5.5

2.5.6

2.5.7

2.6

2.6.1

2.6.2

Capital, reserve, liabilities and provision and basis of their valuation

The carrying amount of an item of fixed assets is derecognized on disposal or when no future economic benefits are expected from its use

or disposal. The gain or loss arising from derecognition of an item of fixed assets is to be recorded in profit or loss when the item is

derecognized.

Leased assets

Authorized and issued capital

These assets are depreciated fully over the shorter of the lease terms and their useful lives.

Intangible assets

Impairment of assets

Other assets

Subsequent expenditure on intangible asset is capitalized only when it increases the future economic benefits embodied in the specific

assets to which it relates. All other expenditure is expensed as incurred.

Other assets includes advance for operating and capital expenditure, stocks of stationary and stamps, security deposits to government

agencies etc. As per BRPD circular no. 14 dated 25 June 2003, Income & Non-income-generating other assets item(s) have been shown

separately in the note-09 to the financial statements.

The core banking software used by NRBGBL represent the value of computer application software licensed for the use of the bank.

Software is carried at cost less accumulated amortization . Initial cost comprises license fees paid at the time of purchase and other

directly attributable costs incurred for customizing the software for its intended use. Software is amortized using the straight line method

over the estimated useful life of 5 (five) years commencing from the month at which the application software is made available for use.

Intangible asset is an identifiable non-monetary asset without physical substance. An intangible asset is recognized if it is probable that

the future economic benefits that are attributable to the assets will flow to the entity and the cost of the asset can be measured reliably in

accordance with BAS 38: "Intangible Assets".

Share capital and reserves

Fixed assets which are procured under finance lease arrangement (under which substantially all the risks and rewards incidental to

ownership are transferred to the lessees i.e. NRBGBL) are reported as leased assets as per BAS 17 “Leases”.

Derecognition of fixed assets

The authorized capital of the Bank is the maximum amount of share capital that the Bank is authorized by its Memorandum and Articles of

Association to issue (allocate) among shareholders. Part of the authorized capital can (and frequently does) remain unissued. This

number can be changed by shareholders' approval upon fulfillment of related provisions of Companies Act 1994. The part of the

authorized capital which has been issued to shareholders is referred to as the issued share capital of the bank.

Non-banking assets

These assets held under finance lease are recognized as assets of the bank at an amount equal to the lower of their fair value and the

present value of minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease

obligation. Any initial direct costs incurred are added to the amount recognized as leased asset.

Non-banking assets are acquired on account of the failure of a borrower to repay the loan in time after receiving the decree from the court

regarding the right and title of the mortgaged property. Currently, the bank has no non-banking assets.

An asset is impaired when its carrying amount exceeds its recoverable amount as per BAS 36 “Impairment of Assets”. The Bank

assesses at the end of each reporting period whether there is any indication that an asset may be impaired and/or whenever events or

changes in circumstances indicate that the carrying value of the asset may not be recovered. If any such indication exists, the Bank make

an estimate of the recoverable amount of the assets. The carrying amount of the asset is reduced to its recoverable amount, if the

recoverable amount is less than its carrying amount and impairment losses are recognized in the profit and loss account. However,

impairment of financial assets are guided by the relevant BB circulars/instructions and BAS 39 "Financial Instruments: Recognition and

Measurement" .

The paid-up capital represents the amount of Bank’s capital that has been contributed by ordinary shareholders. The holders of ordinary

shares are entitled to receive dividend as recommended by the Board and subsequently approved by the shareholders from time to time

in the Annual General Meeting (AGM).

Paid-up capital

14

2.6.3

2.6.4

2.6.5

2.6.6

2.6.7

Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and the

corresponding tax bases used in the computation of taxable profit and are accounted for using the balance sheet method. Deferred tax

liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that is

probable that taxable profits will be available against which deductible temporary differences, unused tax losses or unused tax credits can

be utilised. Such assets and liabilities are not recognised if the temporary differences arises from goodwill or from the initial recognition

(other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the

accounting profit.

Assets revaluation reserve

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable

that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised, based

on tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is charged or credited to the income

statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement

because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never

taxable or deductible. The Bank's liability for current tax is calculated using tax rates that have been enacted or sustantively enacted by

the balance sheet date.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax

liabilities and when they relate to income taxes levied by the same taxation authority and the company intends to settle its current tax

assets and liabilities on a net basis.

The impact on the account of changes in the deferred tax assets and liabilities has also been recognized in the Profit and Loss Account as

per BAS 12 "Income Taxes".

In compliance with the provision of Section 24 of Bank Company Act 1991 (Amendment upto 2013), the Bank transfers at least 20% of its

profit before tax to “Statutory Reserve Fund” each year until the sum of statutory reserve and share premium equal to the paid up capital

of the bank.

Borrowings from other banks, financial institutions and agents

Deposits and other accounts

Income tax represents the sum of current tax and deferred tax.

When an assets carrying amount is increased as a result of revaluation the increased amount is credited directly to equity under the

heading of assets revaluation reserve as per BAS 16 "Property, Plant and Equipment". The revaluation reserve for the Treasury Bonds

and Bills are booked as per Bangladesh Bank DOS circular letter no. 05 dated 26 May 2008 and DOS circular no. 05 dated 28 January

Current tax

Statutory reserve

Deposits and other accounts include non-interest bearing current deposits redeemable at call, interest bearing short-term deposits,

savings deposits and fixed deposits which are initially measured at the consideration received. These items are subsequently measured

and accounted for at the gross value of the outstanding balance in accordance with the contractual agreements with the counterparties.

Provision for taxation

Deferred tax

Liabilities and provisions

Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and

interests in joint-ventures, except where the Bank is able to control the reversal of the temporary difference and it is probable that the

temporary difference will not reverse in the foreseeable future.

Provision for current income tax has been made at a rate of 40% on the accounting profit made by the Bank after considering taxable

allowances and disallowances as per income tax laws applicable for the Bank.

Borrowings from other banks, financial institutions and agents include interest bearing borrowings which are stated in the financial

statements at principal amount of the outstanding balance. Interest payables on such borrowings are reported under other liabilities.

15

2.6.8

2.6.9

2.6.10

2.6.11

2.6.12

2.6.13

2.6.14

2.6.15

2.7

2.7.1

2.7.2

2.7.3

2.7.4

Provision for liabilities and accrued expenses

Dividend Income

Contingent liabilities

Interest on unclassified loans and advances is accounted for as income on accrual basis, interest on classified loans and advances is

credited to interest suspense account with actual receipt of interest there from credited to income as and when received as per instruction

contained in BRPD 14 dated 23 September 2012 & BRPD 19 dated 27 December 2012 of Bangladesh Bank.

Provision for other assets is made as per the guidelines mentioned (100% provision is required on other assets which are outstanding for

one year and above) in the BRPD circular no. 14 dated 25 June 2001.

Interest income from investments

Provision for loans and advances

Provision for other assets

Fees and commission income

In compliance with BAS 37, provisions for other liabilities and accrued expenses are recognized in the financial statements when the Bank

has a legal or constructive obligation as a result of past event, it is probable that an outflow of economic benefit will be required to settle

the obligation and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities which include certain guarantees and letters of credit pledged as collateral are possible obligations that arise from

past events whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within

the control of the Bank. Contingent liabilities are not recognized in the financial statements as per BAS 37 “Provisions, Contingent

Liabilities and Contingent Assets”. However, disclosure on contingent liabilities have been made on the face of balance sheet under “Off-

balance Sheet Items” as per the guidelines of BRPD circular no. 14 dated 25 June 2003.

Interest income

Revenue recognition

As per instruction contained in the circular letter no. FEPD (FEMO)/01/2005-677 dated 13 September 2005 issued by Foreign Exchange

Policy Department of Bangladesh Bank, Provision is to be maintained on the unreconciled debit balances running unreconciled for more

than 03 months as on the reporting date. Since there is no unreconclied entries which are unreconciled for more than 03 months, no

provision has been made in this regard.

Other liabilities comprise items such as provision for loans and advances, provision for taxes, interest payable on borrowing, interest

suspense and accrued expenses etc. Individual item-wise liabilities are recognized as per the guidelines of Bangladesh Bank and

Bangladesh Financial Reporting Standards (BFRS).

Other liabilities

Provision for nostro account

In compliance with Bangladesh Bank guidelines, contingent liabilities have been disclosed under off-balance sheet items. As per BRPD

circular no. 14 dated 23 September 2012 and related earlier circulars, the bank has been maintaining provision @1% against certain off-

balance sheet exposures.

Provision for off-balance sheet exposures

Dividend payable

Provision for loans and advances is made on the basis of quarter end review by the management and instructions contained in BRPD

circular no. 14 dated 23 September 2012, BRPD circular no. 05 Dated 29 May 2013 , BRPD circular no. 19 dated 27 December 2012 and

BRPD circular no. 08 dated 02 August 2015.

Final dividend is recognized when it is approved by the shareholders in AGM. Interim dividend is recognized when it is paid to

shareholders.

Fees and commission income arises on services provided by the Bank and recognized as and when received basis. Commission charged

to customers on letters of credit, letters of guarantee and acceptance are credited to income at the time of effecting the transactions.

Dividend Income from investment is recognised at the time when it is decleared, ascertained and right to receive the payment is

Interest income on investments in Government and other securities, debentures and bonds is accounted for on accrual basis.

16

2.7.5

2.7.6

2.7.7

2.7.7.1

2.7.7.2

2.7.8

2.8

2.9

2.10

2.11

Liquidity statement

The liquidity statement has been prepared in accordance with remaining maturity grouping of Assets and Liabilities as at the close of the

year as per following bases:

Loans and advances

Cash, Balance with other banks and financial institutions,

money at call and short notice etc.Stated maturity/ observed behavioral trend

Earnings per share

Cash flow statement

The Bank presents basic and diluted Earnings Per Share (EPS) data for its ordinary shares as per BAS 33 “Earnings Per Share”. Basic

EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the bank by the weighted average number of

ordinary shares outstanding during the period.

Investments Residual maturity term

Repayment/maturity schedule and behavioral trend (non-maturity

products)

Statement of changes in equity

Useful lifeFixed assets

Deposits and other accounts

Other long term liability

Statement of Changes in Equity has been prepared in accordance with BAS 1 “Presentation of Financial Statements” and following the

guidelines of Bangladesh Bank BRPD circular no.14 dated 25 June 2003.

Maturity/repayment term

Other assets

Provision and other liability

Maturity term

Settlement/adjustment schedule basis

Maturity and behavioral trend (non-maturity products)

Realization/amortization basis

Borrowings from other banks and financial institutions

Cash flow statement has been prepared in accordance with BAS 7 "Statement of Cash Flows" and under the guideline of Bangladesh

Bank BRPD circular no.14 dated 25 June 2003. The Statement shows the structure of changes in cash and cash equivalents during the

financial year.

Management and other expenses

Expenses incurred by the Bank are recognised on actual and accrual basis.

Provident fund benefits are given to the permanent employees of the Bank in accordance with Bank's service rules. Accordingly a trust

deed and provident fund rules is to be prepared. All confirmed employees of the Bank are contributing 10% of their basic salary as

subscription to the Fund. The Bank also contributes equal amount of the employees' contribution. Interest earned from the investments is

credited to the members' account on yearly basis.

Retirement benefits

Provident Fund

Particulars Basis of Use

Gratuity fund

The retirement benefits accrued for the employees of the Bank during the reporting period have been accounted for in accordance with

the provisions of BAS 19 "Employee Benefit". The retirement benefit schemes operated by the Bank are outlined below:

Interest paid on borrowings and deposits

Interest paid on borrowings and deposits are calculated on 360 days basis (except for some treasury instruments which are calculated on

364 days basis) in a year and recognized on accrual basis.

The Bank operates an unfunded gratuity fund on "Closed Plan Basis", in respect of which provision has made annually covering all its

permanent eligible employees.

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant

influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to

common control or common significant influence.

Related party transaction is a transfer of resources, services or obligations between related parties, regardless of whether a price is

charged as per BAS 24 ''Related Party Disclosures'', Bangladesh Bank & BSEC guidelines. Details of the related party transactions have

been disclosed in Note - 44.

Related party transactions

17

2.12

2.13

2.14

2.15

BAS no. Status

1 Applied(1)

2 Applied

7 Applied(1)

8 Applied

10 Applied

11 N/A

12 Applied

16 Applied

17 Applied

18 Applied

19 Applied

20 N/A

21 Applied

23 N/A

24 Complied

26 N/A

27 N/A

28 N/A

31 N/A

32 Applied(1)

33 Applied

34 Applied

36 Applied(1)

37 Applied(1)

38 Applied(1)

39 Applied(1)

40 N/A

41 N/A

Accounting Policies, Changes in Accounting Estimates and Errors

Leases

Employee Benefits

Financial Instruments: Presentation

Information about business and geographical segments

Events after the reporting period

Construction Contracts

Income Taxes

Property, Plant and Equipment

Geographical segments

Earnings Per Share

Intangible Assets

Revenue

Compliance report on Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS)

Name of the BAS

Inventories

Events after the Reporting Period

Presentation of Financial Statements

Statement of Cash Flows

Financial Instruments: Recognition and Measurement

Interests in Joint Ventures

Related Party Disclosures

Accounting and Reporting by Retirement Benefit Plans

Investments in Associates and Joint Ventures

The Institute of Chartered Accountants of Bangladesh (ICAB) is the sole authority for adoption of International Accounting Standards (IAS)

and International Financial Reporting Standards (IFRS) as Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting

Standards (BFRS). While preparing the financial statements, NRB Global Bank applied all of the BAS and BFRS applicable and relevant.

Details are as follows:

Reconciliation of books and accounts

Inter-segment transactions are generally based on inter-branch fund transfer measures as determined by the management. Income,

expenses, assets and liabilities are specifically identified with individual segments. Based on such allocation, segmental balance sheet as

on 31 December 2016 and segmental profit and loss account for the year ended 31 December 2016 have been prepared.

Geographical segments report consists of products and services within a particular economic environment where risks and returns are

different from those of other economic environments. Geographical segments report are shown in Annexure-B.

Business segments report consists of products and services whose risks and returns are different from those of other business segments.

These segments comprise Conventional Banking, Islamic Banking and investment. Business segments report are shown in Annexure-B.

Accounting for Government Grants and Disclosure of Government Assistance

The Effects of Changes in Foreign Exchanges Rates

Borrowing Costs

Separate Financial Statements

Investment Property

Agriculture

Interim Financial Reporting

Impairment of Assets

Provisions, Contingent Liabilities and Contingent Assets

Books of account in regard to inter-bank (in Bangladesh and outside Bangladesh) as well as inter-branches are reconciled at regular intervals

to keep the unreconciled balances within non-material level.

All the material events after the reporting period have been considered and appropriate adjustments/disclosures have been made in the

financial statements as per BAS 10 “Events after the Reporting Period”.

Business segment

18

BFRS no. Status

1 N/A

2 N/A

3 N/A

4 N/A

5 N/A

6 N/A

7 Applied(1)

8 Applied

10 N/A

11 N/A

12 N/A

13 Applied(1)

2.16

1. Applied with departure as mentioned in Note - 2.16

Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, BRPD circular no. 19 dated 27 December 2012 ,BRPD

circular no. 05 dated 29 May 2013 and nd BRPD circular no. 08 dated 02 August 2015 a general provision at 0.25% to 5% under different

categories of unclassified loans (good/standard loans) has to be maintained regardless of objective evidence of impairment. Also

provision for sub-standard loans, doubtful loans and bad/losses has to be provided at 20%, 50% and 100% respectively for loans and

advances depending on the duration of overdue. Again as per BRPD circular no. 10 dated 18 September 2007 and BRPD circular no. 14

dated 23 September 2012, a general provision at 1% is required to be provided for all off-balance sheet exposures. Such provision

policies are not specifically in line with those prescribed by BAS 39.

Recognition of interest in suspense

BFRS: Loans and advances to customers are generally classified as "loans and receivables" as per BAS 39 and interest income is

recognised through effective interest rate method over the term of the loan. Once a loan is impaired, interest income is not recognised in

the financial statements.

BFRS: As per BAS 39 an entity should start the impairment assessment by considering whether objective evidence of impairment exists

for financial assets that are individually significant. For financial assets that are not individually significant, the assessment can be

performed on an individual or collective (portfolio) basis.

Although the financial statements of the Bank is prepared complying the provisions of International Accounting Standards (IAS) and

International Financial Reporting Standards (IFRS) as adopted by the Institute of Chartered Accountants of Bangladesh (ICAB), as a

primary regulator, requirement of Bangladesh Bank in this regard has to be complied as well. In certain areas of financial statements,

requirement of Bangladesh Bank differs from that of the BFRS. In such cases, compliance of Bangladesh has been ensured through

departures from the relevant requirements of IAS/IFRS. Some of the material issues are as follows:

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 investments in quoted shares and unquoted shares are revalued at

the reporting date at market price and as per book value of last audited balance sheet respectively. Provision should be made for any loss

arising from diminution in value of investment on portfolio basis.

Revaluation gain/loss on government securities

BFRS: As per requirement of BAS 39 where securities will fall under the category of "Held for Trading (HFT)", any change in the fair value

of held for trading assets is recognized through profit and loss account. Securities designated as "Held to Maturity (HTM)" are measured

at amortized cost method and interest income is recognized through the profit and loss account.

Bangladesh Bank: HFT securities are revalued on the basis of mark to market and any gains on revaluation of securities which have not

matured as at the balance sheet date are recognized in other reserves as a part of equity and any losses on revaluation of securities

which have not matured as at the balance sheet date are charged in the profit and loss account. Interest on HFT securities including

amortization of discount are recognized in the profit and loss account. HTM securities which have not matured as at the balance sheet

date are amortized and gains or losses on amortizations are recognized in other reserve as a part of equity.

Provision on loans and advances

BFRS: As per requirements of BAS 39 investment in shares and securities generally falls either under “at fair value through profit and loss

account” or under “available for sale” where any change in the fair value at the reporting date is taken to profit and loss account or

revaluation reserve respectively.

Name of BFRS

Investment in shares and securities

Non-Current Assets Held for Sale and Discontinued Operations

First-time Adoption of International Financial Reporting Standards

Share Based Payment

Insurance Contracts

Business Combinations

Exploration for and Evaluation of Mineral Resources

Financial Instruments: Disclosures

Operating Segments

Details of departures from BAS and BFRS for the sake of Bangladesh Bank compliance

Fair Value Measurement

Consolidated Financial statements

Joint Arrangements

Disclosure of interests in other Entities

19

BFRS: As per BAS 7 cash and cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of

cash and which are subject to insignificant risk of changes in value. Therefore, some items like Balance with Bangladesh Bank on account

of CRR/SLR are not part of cash and cash equivalent as those are not readily available.

Bangladesh Bank: As per Bangladesh Bank circulars/guidelines, balance with Bangladesh Bank is part of cash and cash equivalent

regardless of any restriction. Furthermore, some cash and cash equivalent items such as ‘money at call and on short notice’, Treasury

bills, Prize bond are not presented as cash and cash equivalent. Instead money at call and on short notice is presented as a face item in

balance sheet and Treasury bills, Prize bonds are presented as investment.

BFRS: Cash flow statement can be prepared either in direct method or in indirect method. The presentation is selected to present these

cash flows in a manner that is most appropriate for the business or industry. The method selected is applied consistently.

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 cash flow is the mixture of direct and indirect method.

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 there a face item named Non-banking asset must exist.

Cash flow statement

Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which are required to be followed by all banks. The

templates of financial statements issued by Bangladesh Bank do not include Other Comprehensive Income nor are the elements of Other

Comprehensive Income allowed to be included in a Single Comprehensive Income (OCI) Statement. As such the company does not

prepare the other comprehensive income statement. However elements of OCI, if any, are shown in the statements of changes in equity.

Financial instruments – presentation and disclosure

BFRS: When an entity sells a financial asset and simultaneously enters into an agreement to repurchase the asset (or a similar asset) at

a fixed price on a future date (REPO or stock lending), the arrangement is accounted for as a deposit as opposed to a sale, and the

underlying asset continues to be recognized in the entity’s financial statements. Such transactions do not satisfy the de-recognition criteria

specified in BAS 39. Such transactions will be treated as loan and the difference between selling price and repurchase price will be

treated as interest expense. Same rule applies to the opposite side of the transaction (Reverse REPO).

Bangladesh Bank: As per Bangladesh Bank circulars/guidelines, when a bank sells a financial asset and simultaneously enters into an

agreement to repurchase the asset (or a similar asset) at a fixed price on a future date (REPO or stock lending), the arrangement is

accounted for as a normal sales transactions and the financial assets are de-recognized in the seller’s book and recognized in the buyer’s

book.

Financial guarantees

BFRS: As per BAS 39, financial guarantees are contracts that require an entity to make specified payments to reimburse the holder for a

loss it incurs because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument. Financial

guarantee liabilities are recognized initially at their fair value, and the initial fair value is amortized over the life of the financial guarantee.

The financial guarantee liability is subsequently carried at the higher of this amortized amount and the present value of any expected

payment when a payment under the guarantee has become probable. Financial guarantees are included within other liabilities.

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 financial guarantees such as letter of credit and letter of gurarantee

will be treated as Off-Balance Sheet items. No liability is recognized for the guarantee except the cash margin.

BFRS: No indication of Non-banking asset is found in any BFRS.

Other comprehensive income

Bangladesh Bank: As per BRPD circular no.14 dated 23 September 2012, once a loan is classified, interest on such loans are not

allowed to be recognised as income, rather the corresponding amount needs to be credited to an interest suspense account, which is

presented as liability in the balance sheet.

Non-banking asset

In several cases Bangladesh Bank guidelines categorize, recognize, measure and present financial instruments differently from those

prescribed in BAS 39. As such some disclosure and presentation requirements of BFRS 7 and BAS 32 cannot be made in the accounts.

Repo transactions

BFRS: As per BAS 1 Other Comprehensive Income is a component of financial statements or the elements of Other Comprehensive

Income are to be included in a Single Comprehensive Income (OCI) Statement.

Cash and cash equivalent

20

2.17

The Risk Management of the Bank covers 6 (six) core risk areas of banking i.e. (a) Credit Risk, (b) Foreign Exchange Risk, (c ) Asset

Liability Risk, (d) Money Laundering Risk, (e) Internal Control & Compliance Risk, and (f) Information amd communication Technology

Security Risk as per DOS circular no. 02 dated 15 February 2012 of Bangladesh Bank.

Foreign exchange risk is defined as the potential change in earnings due to change in value of currencies. The foreign exchange risk of

the Bank is minimal as all the transactions are carried out on behalf of the customers against underlying L/C commitments and other

remittance requirements.

Risk Management

The possibility of losses, financial or otherwise is defined as risk. The assets and liabilities of NRB Global Bank Limited is managed with a

view to reducing the risks associated with its operation to a prudently minimum level, with proper consideration to a steadily increasing

flow of net interest income. the objective is accomplished through placing a planning, control and reporting process, the key objective of

which is the coordinated management of the Bank's assets and liabilities, current banking laws and regulations, as well as prudent and

generally acceptable banking practices.

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 off-balance sheet items (e.g. letter of credit, letter of guarantee etc.)

must be disclosed separately on the face of the balance sheet.

Balance with Bangladesh Bank: (CRR)

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 an appropriation of profit should be disclosed in the face of profit

Loans and advance net of provision

Bangladesh Bank: There is no requirement for regulation of intangible assets in BRPD circular no. 14 dated 25 June 2003.

Bangladesh Bank: Balance with Bangladesh Bank is treated as cash and cash equivalents.

Off-balance sheet items

BFRS: There is no concept of off-balance sheet items in any BFRS; hence there is no requirement for disclosure of off-balance sheet

items on the face of the balance sheet.

Credit Risk

BFRS: Balance with Bangladesh Bank should be treated as other asset as it is not available for use in day to day operations as per BAS

7.

In determining single borrower / large loan limit, the instructions of Bangladesh Bank are strictly followed. Internal audit is conducted at

periodical intervals to ensure compliance of Bank's and Regulatory polices. Loans are classified as per Bangladesh Bank's guidelines.

Concentration of single borrower / large loan limit is shown in note- 7.

The Bank has segregated duties of the officers/executives involved in credit related activities. A separate Division has been formed at

Head Office which is entrusted with the duties of maintaining effective relationship with the customers, marketing of credit products,

exploring new business opportunities, etc. Moreover, credit approval, administration, monitoring and recovery functions have been

segregated. For this purpose, two separate divisions have been formed within the Credit Division. These are (a) Credit Risk Management

Division and (b) Credit Administration Division. Credit Risk Management Division is entrusted with the duties of maintaining asset quality,

assessing risk in lending to a particular customer, sanctioning credit, formulating policy / strategy for lending operation, etc. Adequate

provision has been made on classified loans / investments.

Foreign Exchange Risk

A thorough assessment is done before sanction of any credit facility at Credit Risk Management Division. The risk assessment includes

borrower risk analysis, financial analysis, industry analysis, historical performance of the customer, security of the proposed credit facility,

etc. The assessment process starts by the Branch Manager/Officer at the branch level and ends at Credit Risk Management Division

when it is approved / declined by the competent authority. Credit approval authority has been delegated to the credit committee.

Disclosure of appropriation of profit

BFRS: There is no requirement to show appropriation of profit in the face of statement of comprehensive income.

Presentation of intangible asset

BFRS: Intangible asset must be identified and recognized and the disclosure must be given as per BAS 38.

BFRS: Loans and advances should be presented net of provisions.

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 provision on loans and advances are presented separately as liability

and cannot be netted off against loans and advances.

It arises mainly from lending, trade finance and treasury businesses. This can be described as potential loss arising from the failure of a

counter party to perform as per contractual agreement with the Bank. The failure may result from unwillingness of the counter party or

decline in his/ her financial condition. Therefore, the Bank's credit risk management activities have been designed to address all these

21

a) Password control

b) User ID maintenance

c) Input control

d) Network security

e) Data encryption

f) Virus protection

g) Internet and e-mail

International Division independently conducted the foreign exchange transactions and the Mid office and the Back office of Treasury is

responsible for verification of the deals and passing of their entries in the books of account. All foreign exchange transactions are revalued

at Market rate as determined by Bangladesh Bank at the month end. All nostro accounts are reconciled on a monthly basis and

outstanding entry is reviewed by the management for its settlement. The position maintained by the Bank at the end of day was within the

stipulated limit prescribed by the Bangladesh Bank.

Asset Liability Risk

The Business continuity Plan (BCP) is formulated to cover operational risks and taking into account the potential for wide area disasters,

data center disaster and recovery plan. The BCP takes into account the backup and recovery process. Keeping this into consideration,

this covers BCP, Disaster Recovery Plan and Back-up/ Restore Plan.

Changes in the market liquidity and or interest rate exposes Bank's business to the risk of loss, which may , in extreme cases, threaten

the survival of the institution. Thus it is essential that the level of balance sheet risks are effectively managed, appropriate policies and

procedures are established to control and limit these risks and proper resources are available for evaluating and controlling these risks.

The Asset Liabiliti Committee (ALCO) of the Bank monitors balance sheet risks and liquidity risks of the Bank.

Asset Liability Committee (ALCO) reviews the country's overall economic position, bank's liquidity position, ALM ratios, interest rate risks,

capital adequacy, deposit advance growth, cost of deposit & yield on advance, F.E. gap, market interest rate, loan loss provision

adequacy and deposit and lending pricing strategy.

Money Laundering Risk

NRB Global Bank Limited considers prevention of money laundering risk not only as a compliance requirement imposed by the law of the

country but also as one of its core business values. The board of directors and senior management are firmly committed to combat money

laundering. Training and awareness programs are regularly held to make all employees' aware of the issue. The Bank has established an

Anti-Money Laudering Policy. The purpose of the policy is to provide a guideline within which to comply with the laws and regulation

regarding money laundering both at country and international levels and thereby to safeguard the Bank from potential compliance,

financial and reputational risks. KYC procedures have beeen set up with address verification. Apart from monitoring account transaction,

the estimated transaction profile and high value transactions are being reviewed electronically.

Internal Control & Compliance Risk

Internal Control and Compliance Division (ICCD) of the bank performs three core functions - Internal Audit, Monitoring and Compliance in

order to mitigate the internal control and compliance risk. ICCD conducts Risk Based Audit and Annual Audit of the Branches. Audit of

Head Office Divisions also come under ICCD. ICCD monitors compliance of Internal as well as Bangladesh Bank Audit Reports including

Bangladesh Bank Special Audit Reports on Core Risks. Besides, Special Audit on some specific issues like year-end Cash Position,

Security Stock verification etc. are also done by ICCD.

Information & Communication Technology Security Risk

NRB Global Bank follows the guideline stated in BRPD circular no. 14 dated 23 October 2005 regarding "Guideline on Information and

Communication Technology for Scheduled Banks" and BRPD circular no. 21 dated 20 May 2010 regarding "Guideline on ICT Security". IT

Division deals with IT policy documentation, internal IT audit, training and insurance.

IT operation management covers the dynamics of technology operation management including change management, asset management,

operating environnment procedures management. The objective is to achieve the highest level of technology service quality by minimum

operational risk.

Physical security involves providing environmental safeguard as well as controlling physical access to equipments and data. In order to

ensure that information assets are protected against risk, there are controls over:

Liquidity Risk

Liquidity Risk is the potential for loss to a bank arising from either its inability to meet its obligations as they fall due or to fund increases in

assets without incurring unacceptable cost or losses. The Bank is deemed to have adequate liquidity when it can obtain sufficient fund

promptly and at a reasonable rate.

22

1.

2.

3.

-

-

-

-

-

-

2.18

a)

b)

c)

d)

General

Interest rate risk is the risk to earnings or capital of the bank arising from movement of interest rates. The movement of interest rates

affects bank’s reported earnings and capital by changing:

• Net interest income

• The market value of trading accounts (and other instruments accounted for by market value), and

• Other interest sensitive income and expenses.

Equity Price Risk

Risk Management Unit (RMU) is responsible for overall monitoring, control, and reporting of market risk while Treasury Mid Office is an

integral part of market risk management which independently evaluates and monitors treasury department’s transaction from risk

perspective. Overall risk parameters and exposures of the bank are monitored by RMU and periodically reported to Bank Risk

Management Committee (BRMC). Market risk can be subdivided into three categories depending on risk factors: Interest Rate Risk,

Foreign Exchange Risk, and Equity Price Risk.

Interest Rate Risk

Market Risk

These financial statements of the Bank cover one calender year from 1 January 2016 to 31 December 2016.

Introduce and maintain necessary procedures to detect fraud;

Encourage employees to report any suspicions action;

Equity price risk is the risk of losses caused by changes in equity prices. These losses could arise because of changes in the value of

listed shares held directly by the bank; changes in the value of listed shares held by a bank subsidiary; changes in the value of listed

shares used as collateral for loans whether the loan was made for the purpose of buying the shares; and changes in the value of unlisted

Operational Risk

Operational Risk is defined as the risk of unexpected losses due to physical catastrophe, technical failure, and human error in the

operation of a bank; including fraud, failure of management, internal process errors and unforeseeable external events. Operational Risk

Unit is primarily responsible for risk identification, measurement, monitoring, control, and reporting of operational risk. Internal Control

(audit) Unit of ICCD also conducts audit at department and branch level throughout the year.

Fraud and Forgeries

NRBGBL is committed to creating a culture of honesty and high ethics inside out of the company to clearly communicate acceptable

behavior and expectations of each employee. Such a culture is rooted in a strong set of core values that provides the foundation for

employees as to how NRBGBL conducts its business. It also allows the company to develop an ethical framework that covers:

The expenses, irrespective of capital or revenue nature, accrued / due but not paid have been provided for in the books of the Bank.

Figures of previous year have been rearranged whenever necessary to conform to current years presentation.

Investigate all instances of suspected fraud;

Take appropriate disciplinary, civil or criminal proceedings;

Report all suspected fraud to the appropriate authorities.

Take appropriate measures to prevent and deter fraud;

Misappropriation of assets; and

Corruption as well as other issues.

The financial statements of the Bank are presented in Bangladesh Taka (BDT) which is the Bank's functional currency. All financial

information presented in Taka has been rounded off to the nearest integer, except when otherwise indicated.

To manage interest rate risk, ALCO regularly monitors various ratios and parameters. Bank deploys several analysis techniques (e.g.

Rate Sensitive Gap Analysis, Duration Gap Analysis) to measure interest rate risk, its impact on Net Interest Income and takes insight

about course of actions.

Fraudulent financial reporting;

Directors set the “tone at the top” for ethical behavior within the company. Management shows its employees through words and actions

that dishonest or unethical behavior will not be tolerated, even if the result of the action benefits the company. All employees are treated

equally, regardless of their position and gender.

Anti-fraud program aim to outline NRBGBL’s commitment to:

23

2016 2015

3 Cash

Cash in hand Note- 3.1 315,266,932 209,627,510

Balance with Bangladesh Bank and its agent bank(s) Note- 3.2 2,336,515,101 1,655,781,448

2,651,782,033 1,865,408,958

3.1 Cash in hand

In local currency 263,576,442 182,303,623

In foreign currency 16,474,490 3,034,387

Cash at ATM (in local currency) 35,216,000 24,289,500

315,266,932 209,627,510

3.2 Balance with Bangladesh Bank and its agent bank(s)

In local currency 2,261,116,421 1,598,826,380

In foreign currency 30,212,132 20,136,331

2,291,328,553 1,618,962,711

Sonali Bank as agent of Bangladesh Bank (Local currency) 45,186,548 36,818,737

2,336,515,101 1,655,781,448

3.3

a) Cash reserve requirement

i) Daily position as on the reporting date

Required reserve (6.0% of total time and demand liabilities) 1,994,404,108 1,421,948,772

Actual reserve maintained* 2,261,116,421 1,598,836,369

Surplus / (deficit) 266,712,313 176,887,597

ii) Fortnightly cumulative position

Required Reserve (6.5% of total time & demand liabilities) 2,160,604,450 1,540,444,503

Actual reserve maintained* 2,261,082,880 1,598,836,369

Surplus / (deficit) 100,478,430 58,391,866

* as per Bangladesh Bank statement

b) Statutory liquidity ratio

Amount in Taka

Statutory deposits

As per MPD circular no. 02 dated 10 December 2013 of Bangladesh Bank (effective from 1 February 2014), all scheduled banks have to

maintain an SLR not less than 13% including the excess of CRR on its total demand and time liabilities. The Bank has been following such

instructions and maintained adequate amount with an excess, details of which are as follows:

As per MPD circular no. 01 dated 23 June 2014 of Bangladesh Bank (effective from 24 June 2014), all scheduled banks have to maintain a

CRR of minimum 6.0% on daily basis and 6.5% on bi-weekly basis on its total demand and time liabilities. The Bank has followed the

instructions and maintained adequate amount with an excess, details of which are as follows:

As per Bangladesh Bank MPD circular no. 01 dated 23 June 2014 Bank has to maintain 6.0% CRR on daily basis.

As per Bangladesh Bank MPD circular no. 01 dated 23 June 2014 Bank has to maintain 6.5% CRR on bi-weekly cumulative average basis.

In persuence of section 33 of Bank Company Act, 1991 (Amendment upto 2013) regarding statutory deposit in liquid assets, Monetary

Policy Department of Bangladesh Bank issues circular regarding Statutory Liquidity Reserve and Cash Reserve Requirement from time to

time. Currently such requirements are governed by MPD circular no. 01 dated 23 June 2014 and MPD circular no. 02 dated 10 December

2013.

24

2016 2015

Amount in Taka

SLR excluding CRR of 6.5%

Required reserve 4,321,208,901 3,080,889,006

Actual reserve maintained 5,034,008,404 3,406,255,582

Surplus / (deficit) 712,799,503 325,366,575

SLR Including CRR of 6.5%

Required reserve 6,481,813,351 4,621,333,510

Actual reserve maintained 7,295,124,825 5,005,081,962

Surplus / (deficit) 813,311,474 383,748,452

c)

Cash in hand Note- 3.1 315,266,932 209,627,510

Balance with sonali bank Note- 3.2 45,186,548 36,818,737

Surplus of CRR 100,478,430 58,391,866

TT in transit - -

Bangladesh Bank bills 90,375,782 -

Govt. treasury bills Note- 6.4 1,412,323,105 379,256,975

Government bonds Note- 6.4 3,070,377,607 2,722,160,494

5,034,008,404 3,406,255,582

3.4 Maturity grouping of cash

Payable on demand 491,177,583 443,460,186

Up to 1 month - -

Over 1 month but not more than 3 months - -

Over 3 months but not more than 6 months - -

Over 6 months but not more than 1 year - -

Over 1 year but not more than 5 years - -

Over 5 years 2,160,604,450 1,421,948,772

2,651,782,033 1,865,408,958

4 Balance with other banks and financial institutions of the Bank

In Bangladesh Note- 4.1 4,765,147,247 3,219,026,038

Outside Bangladesh Note- 4.2 79,196,370 40,741,542

4,844,343,617 3,259,767,580

4.1 In Bangladesh

Current deposits

Gulshan Branch 2,650,760 2,270,915

Gulshan Branch 4,599,622 20,200,513

7,250,382 22,471,428

Special notice deposits

First Security Islami Bank Limited Gulshan Branch 33,143,186 8,642,453

Union Bank Limited Agrabad Branch 78,760 2,131,654

First Security Islami Bank Limited Agrabad Branch 73,446 270,406

33,295,392 11,044,513

EXIM Bank Limited

Components of SLR

Trust Bank Limited

25

2016 2015

Amount in Taka

Fixed deposits

Reliance Finance Limited 4,671,551,473 2,882,460,097

National Finance Limited - 100,000,000

Peoples Leasing and Financial Services Limited - 150,000,000

Phoenix Finance & Investment Limited 53,050,000 53,050,000

4,724,601,473 3,185,510,097

4,765,147,247 3,219,026,038

4.2 Outside Bangladesh (NOSTRO Accounts)

Mashreq Bank PSC, New York USA 49,363,339 15,113,187

4,030,152 12,084,702

6,460,318 3,025,085

8,817,897 37,382

73,200 226,256

10,451,464 10,254,930

(See Annexure-D for detail) 79,196,370 40,741,542

4.3 Maturity grouping of balance with other banks and financial institutions

Payable on demand 7,250,382 22,471,428

Up to 1 month 382,491,763 201,786,055

Over 1 month but not more than 3 months 2,001,551,470 2,043,353,464

Over 3 months but not more than 6 months 2,400,000,000 282,477,250

Over 6 months but not more than 1 year - 656,629,383

Over 1 year but not more than 5 years 53,050,000 53,050,000

Over 5 years - -

4,844,343,615 3,259,767,580

5 Money at call and short notice

With banking companies - -

- -

With non-banking financial institutions -

20,000,000 -

- 80,000,000

- 150,000,000

20,000,000 230,000,000

20,000,000 230,000,000

6 Investments

Claim-wise:

Government securities Note- 6.1 4,573,728,394 3,101,960,269

Other investments Note- 6.2 428,575,000 524,279,792

5,002,303,394 3,626,240,061

Nature-wise:

Held for Trading (HFT) Note- 6.3 - -

Held to Maturity (HTM) Note- 6.4 4,573,076,494 3,101,417,469

Other than those classified under HFT and HTM 429,226,900 524,822,592

5,002,303,394 3,626,240,061

First Finance Limited

Peoples Leasing and Financial Services Limited

Mashreq Bank, London

United Bank. Kolkata

Mashreq Bank, London

NIB Bank, Pakistan

AB Bank Limited, Mumbai, India

Bangladesh Industrial Finance Company Limited

26

2016 2015

Amount in Taka

6.1 Government securities

Treasury bills 1,412,323,105 379,256,975

Bangladesh Bank bills 90,375,782 -

National investment bonds - -

Government notes/ bonds 3,070,377,607 2,722,160,494

Prize bonds 651,900 542,800

Others - -

4,573,728,394 3,101,960,269

6.2 Other investments

Subordinate bond of Reliance Finance Limited Note-6.5 308,575,000 -

Preferance Shares of Union Capital Limited 80,000,000 100,000,000

40,000,000 50,000,000

- 374,279,792

Gold etc. - -

428,575,000 524,279,792

6.3 Held for trading

Bangladesh Government Treasury Bonds - -

Bangladesh Bank bills - -

Other securities - -

- -

6.4 Held to maturity

Government Bonds

791,941,636 973,295,235

5 years Bangladesh Government treasury bonds 1,558,872,167 1,358,586,815

10 years Bangladesh Government treasury bonds 52,541,254 -

15 years Bangladesh Government treasury bonds 417,964,637 227,229,917

20 years Bangladesh Government treasury bonds 249,057,913 163,048,527

3,070,377,607 2,722,160,494

Treasury Bills

50,302,283 -

251,368,575 -

28 days treasury bills - -

91 days treasury bills 773,081,099 26,672,081

182 days treasury bills - 261,951,387

364 days treasury bills 337,571,148 90,633,507

5 years treasury bills - -

1,412,323,105 379,256,975

30 days Bangladesh Bank bills 90,375,782 -

Other securities - -

1,502,698,887 379,256,975

4,573,076,494 3,101,417,469

6.5 Reliance Finance Limited Subordinated bond

Principal 300,000,000 -

Add: Interest accrued during the year 24,325,000 -

Less: Principal redemption during the year - -

Less: Interest received during the year 15,750,000 -

Redeemable value 308,575,000 -

Preferance Shares of Regent Energy and Power Limited

07 days treasury bills

2 years Bangladesh Government treasury bonds

14 days treasury bills

Secondary share

27

2016 2015

Amount in Taka

6.6

- 374,279,792

- 374,279,792

6.7 Maturity grouping of investments

Payable on demand 651,900 542,800

Up to 1 month 833,305,899 400,951,873

Over 1 month but not more than 3 months 1,040,145,780 624,175,476

Over 3 months but not more than 6 months 143,821,362 277,753,328

Over 6 months but not more than 1 year 585,852,702 330,939,519

Over 1 year but not more than 5 years 1,878,961,947 1,551,598,621

Over 5 years 519,563,804 440,278,444

5,002,303,394 3,626,240,061

6.8 Disclosure regarding outstanding Repo

Agreement

date Reversal date Amount

- - -

- - -

6.9 Disclosure regarding outstanding Reverse Repo

Agreement

date Reversal date Amount

- - -

- - -

6.10 Disclosure regarding outstanding overall transaction of Repo and Reverse Repo

Minimum

outstanding

during the year

Maximum

outstanding

during the year

Daily average

outstanding

during the year

Securities sold under Repo

- - -

- - -

-

Securities purchased under Reverse Repo

- - -

- - -

-

7 Loans and advances

Loans, cash credits, overdrafts etc. Note- 7.1 26,770,994,107 13,974,075,381

Bills purchased and discounted Note- 7.2 8,187,291,357 6,872,055,245

34,958,285,464 20,846,130,626

Total

-

- Total

Counter-party name

Investment in shares

Quoted

Counter-party name

Total

Total

Counter-party name

National Bank Limited

28

2016 2015

Amount in Taka

7.1 Loans, cash credits, overdrafts etc.

Inside Bangladesh

Cash credit (Hypo) 15,042,960,377 6,454,295,299

General Term Loan 1,655,221,696 1,370,428,348

Payment against documents 87,701,197 49,142,685

Loan against trust receipts 445,530,199 385,393,922

Credit card 20,248,125 11,978,728

House building loans 116,531,744 76,465,601

Overdraft 9,073,606,627 5,379,604,852

Staff Loan 132,383,149 106,724,662

Other Loans and Advancess 196,810,993 140,041,284

26,770,994,107 13,974,075,381

Outside Bangladesh - -

26,770,994,107 13,974,075,381

7.2 Bills purchased and discounted

Payable inside Bangladesh

Local bills/ documents 8,156,652,791 6,853,477,736

Foreign bills/ documents 30,638,566 18,577,509

8,187,291,357 6,872,055,245

Payable outside Bangladesh - -

8,187,291,357 6,872,055,245

7.3 Net loans and advances

Gross loans and advances Note- 7 34,958,285,464 20,846,130,626

Less:

Non-performing loans and advances Note- 7.12 146,307,430 132,393,408

Interest suspense Note- 13.5 19,731,508 18,346,482

Provision for loans and advances Note- 7.14 364,574,451 251,025,625

530,613,389 401,765,515

34,427,672,075 20,444,365,111

7.4

808,292 -

15,947,265,095 11,957,256,540

15,241,984,003 7,449,112,156

3,261,641,822 868,591,936

506,586,252 571,169,994

34,958,285,464 20,846,130,626

7.5

2,518,731,920 1,151,153,933

1,357,933,758 1,155,072,921

3,340,787,705 4,563,819,083

969,837,974 2,009,308

8,187,291,357 6,872,055,245

Residual maturity grouping of loans and advances including bills purchased and discounted

Payable within 1 month

6 months or more

Repayable on demand

Over 5 years

Over 1 month but less than 3 months

Residual maturity grouping of bills purchased and discounted

Not more than 3 months

Over 3 months but not more than 1 year

Over 1 year but not more than 5 years

Over 3 months but less than 6 months

29

2016 2015

Amount in Taka

7.6 Loans and advances under the following broad categories

Loans 1,655,221,696 1,370,428,348

Cash credits 15,042,960,377 6,454,295,299

Overdrafts 9,073,606,627 5,379,604,852

Others 999,205,407 769,746,882

26,770,994,107 13,974,075,381

Bills purchased and discounted Note- 7.2 8,187,291,357 6,872,055,245

34,958,285,464 20,846,130,626

7.7 Loans and advances on the basis of significant concentration

a) Loans and advances to directors and allied concerns of the directors - 10,775,991

b) Loans and advances to staff

83,058,868 67,094,564

49,324,278 39,630,098

132,383,146 106,724,662

c) Advances to industries

217,042,775 380,859,868

- 295,426,901

Commercial Real Estate Financing 65,405,545 238,935,201

Construction 586,631,594 1,807,056,150

Consumer Finance 72,190,908 64,736,375

Residential real estate financing 93,162,840 44,218,697

Transport, storage and communication 180,315,415 163,332,657

1,218,330,197 444,997,137

26,913,320,413 12,471,858,286

1,138,401,817 956,743,732

1,042,291,568 369,788,006

1,429,922,486 1,833,288,884

1,868,886,760 1,657,388,079

34,825,902,318 20,728,629,973

34,958,285,464 20,846,130,626

e) Loans, advances and leases -geographical location-wise

Inside Bangladesh

Dhaka Division 13,753,953,397 12,137,769,955

Chittagong Division 18,582,367,285 7,608,254,931

Khulna Division 35,883,611 5,045,922

Rajshahi Division 20,601,589 12,003,622

Barisal Division - -

Sylhet Division 12,001,168 3,128,170

Rangpur Division - -

32,404,807,050 19,766,202,600

Dhaka Division 362,769,423 155,458,977

Chittagong Division 2,190,708,991 924,469,049

Khulna Division - -

Rajshahi Division - -

Barisal Division - -

Sylhet Division - -

Rangpur Division - -

2,553,478,414 1,079,928,026

Outside Bangladesh - -

34,958,285,464 20,846,130,626

Small and Medium Enterprise Loans

Textiles industries

Chief executive and other senior executives

Agriculture

Retail Loan

Ready Made Garments-RMG

Other employees

Commercial and trading services

Rural

Urban

Capital Market Institutions

Other Manufacruring Industries

30

2016 2015

Amount in Taka

7.8 Sector-wise loans and advances including bills purchased and discounted

Public sector - -

Private sector 34,958,285,464 20,846,130,626

34,958,285,464 20,846,130,626

7.9 Details of large loans and advances

7.00 5.00

5,558,010,310 2,345,352,144

- -

Not Applicable Not Applicable

Funded Non-funded

647,861,507 - 647,861,507 676,970,143

- - - 475,800,000

482,607,965 - 482,607,965

33,970,424 20,766,657 54,737,081 397,928,973

363,304,744 - 363,304,744 372,099,167

- 3,483,259,200 3,483,259,200 -

659,941,208 - - -

310,982,333 215,257,480 526,239,813 422,553,861

2,498,668,181 3,719,283,337 5,558,010,310 2,345,352,144

7.10 Security/collateral-wise concentration of loans and advances (including bills purchased and discounted)

Collateral of movable / immovable assets 20,681,399,496 10,868,543,059

Local banks and financial institutions guarantee - -

Government guarantee - -

Export documents - -

Fixed deposit receipts 987,166,872 448,856,557

FDR of other banks - -

Government bonds - -

Personal and corporate guarantee 3,275,012,889 2,976,401,130

Other securities 10,014,706,207 6,552,329,880

34,958,285,464 20,846,130,626

7.11 Particulars of loans and advances

i) 21,668,566,368 11,317,399,616

ii)3,275,012,889 2,976,401,130

iii)

10,014,706,207 6,552,329,880

iv) - -

34,958,285,464 20,846,130,626

Shipon Trade

Amount of outstanding loans and advances

R.T.C

BSB Spinning Mills Ltd.

As at 31 December 2016 there were 07 (31 December 2015: 05) borrowers or group with whom amount of outstanding loans and advances

exceeded 10% of the total capital of the Bank. Total capital of the Bank was Taka 5,006,191,611.00 as at 31 December 2016 (Taka

4,380,165,639.00 as at 31 December 2015)

Total Total

SS Power Limited

Loans and advances considered good in respect of which the Bank is fully secured.

Name of clients

Givensee Germents Accssories Ltd.

Amount of classified loans and advances

Nasa Group

Ratanpur Ship Recycling Ind. Ltd.(RSRM)

Outstanding

Loans and advances considered good secured by the personal undertaking of one or

more parties in addition to the personal guarantee of the debtors.

Number of clients

Measures taken for recovery

S. Alam Steel Mills Ltd.

Loans and advances considered good against which the Bank holds no security other

than the debtors' personal guarantee.

Loans and advances adversely classified; provision not maintained there against.

31

2016 2015

Amount in Taka

v)132,383,149 117,500,653

vi)

- -

vii)

5,001,500 5,478,225

viii)

- -

ix) - -

x)

a) 86,181,348 74,232,781

b) 19,339,693 41,677,700

c) 19,339,693 41,677,700

d) 19,731,508 18,346,482

xi)

Opening Balance - -

Amount written off during the year - -

- -

- -

7.12 Classification of loans and advances

Unclassified

Standard (including staff loan) 34,244,098,009 20,629,051,054

Special mention accounts (SMA) 567,880,025 84,686,164

34,811,978,034 20,713,737,218

Classified

Sub-standard 19,359,029 734,883

Doubtful 40,767,053 57,425,744

Bad/ Loss 86,181,348 74,232,781

146,307,430 132,393,408

34,958,285,464 20,846,130,626

7.13

Opening balance 132,393,408 -

Addition during the year 70,925,212 132,393,408

57,011,190 -

146,307,430 132,393,408

Loans and advances due by directors or officers of the banking company or any of them

either separately or jointly with any other persons.

Movement of classified loans and advances

Classified loans and advances

Provision on classified loans and advances

Loans and advances due from companies or firms in which the directors of the Bank have

interest as directors, partners or managing agents or in case of private companies, as

members

Interest credited to Interest Suspense Account

Maximum total amount of loans and advances, including temporary advances made at

any time during the year to directors or managers or officers of the banking company or

any of them either separately or jointly with any other person.

Reductions during the year

Closing balance

The amount of written off / classified loans and advances for which law suits have been

filed

Amount realised against loans and advances previously written off

Maximum total amount of loans and advances including temporary loans and advances

granted during the year to the companies or firms in which the directors of the banking

company have interest as directors, partners or managing agents or in the case of private

companies, as members.

Provision kept against loans and advances classified as bad debts

Due from banking companies

Cumulative amount of written off loans and advances

Classified loans and advances on which interest has not been charged

32

2016 2015

Amount in Taka

Bank as a whole has taken following steps to recover its classified Loans and Advances

a) Sending letters and remainders to customers

b) Special assets management department is responsible for holding discussion with the clients to recover the loans

c) Disposal /encashment of security through action.

d) Legal proceedings and settlement

e) Rescheduling or restructuring

f) Negotiation and settlement with approval from competent authority

7.14 Particulars of required provision for loans and advances

General Provision

33,264,556,709 1.00% 332,645,567 197,306,704

695,428,923 0.25% 1,738,572 924,470

65,403,033 5.00% 3,270,152 2,785,988

96,053,192 2.00% 1,921,064 6,978,514

Short term agriculture loan 1,982,257 2.50% 49,556 430,564

1,203,483 5.00% 60,174 93,529

554,967,290 1.00% 5,549,673 828,156

132,383,146 0.00% - -

34,811,978,033 345,234,758 209,347,925

7,240,281 20.00% 1,448,057 66,543

5,995,138 50.00% 2,997,569 9,320,107

14,894,067 100.00% 14,894,067 32,291,050

28,129,486 19,339,693 41,677,700

Required provision for loans, advances and lease / investments 364,574,451 251,025,625

Total provision maintained 364,574,451 251,025,625

Excess / (short) provision at 31 December - -

7.15 Particulars of required provision on Off-balance Sheet Exposures

813,190,583 8,131,906 2,685,537

3,893,670,621 38,936,706 9,585,901

326,934,608 3,269,346 3,816,624

Required provision on Off-balance Sheet Exposures 5,033,795,812 50,337,958 16,088,062

Total provision maintained 50,337,958 16,088,062

Excess / (short) provision at 31 December - -

Status

Provision

at 1.00%

Base for

provision

Letter of guarantee

Acceptances and endorsements

Provision

Amount

Particulars

Provision

Amount Base for provision

Special mention account - Consumer

Total

Bad / Loss

SME Loans

Sub-standard

Specific Provision

General loans and advances

Special mention account (SMA)

Status

Consumer financing

Doubtful

Other certain types of lending

Staff Loan

Provision

Amount

Letter of credit

Measures taken for recovery of classified loans and advances:

Base for provision

Provision

at 1.00%

Provision

Amount

Rate

Rate

Other certain types of lending includes Housing Finance, Loans for Professionals to set up business under Consumer Financing Scheme,

Loans to Brokerage House, Merchant Banks, Stock dealers etc.

33

2016 2015

Amount in Taka

8 Fixed assets including premises, furniture and fixtures of the Bank

Cost

Property, plant & equipment

Furniture & Fixture 284,818,684 182,775,674

Machineries and equipment 250,947,377 184,892,939

Motor Vehicle 86,501,836 50,701,836

Computer and Peripherial 167,629,075 153,230,415

Automated Teller Machine (ATM) 57,539,180 44,017,597

805,000 805,000

848,241,152 616,423,461

Intangible assets

Core banking solution 68,974,611 68,974,611

Other softwares 7,572,545 4,674,795

76,547,156 73,649,406

Total fixed assets at cost 924,788,308 690,072,867

Less: Accumulated depreciation 294,664,126 158,025,446

Net book value at the end of the year (See Annexure-A for detail) 630,124,182 532,047,421

Premises not used by the Bank

9 Other Assets of the Bank

Income generating other assets

Interest receivable Note - 9.1 217,815,295 186,154,602

217,815,295 186,154,602

Non income generating other assets

Stationery and stamps 15,382,171 11,343,300

Preliminary Expenses Note - 9.2 65,642,980 131,285,962

Prepaid expenses 2,029,214 105,008

Tax deducated at sources (AIT) 179,075,202 131,686,160

Advance tax payment 111,861,716 6,821,716

Advance to supplier 75,627,643 114,317,142

Advance rent 454,298,869 480,626,317

Security Deposit 638,378 2,498,379

Branch adjustment account - -

Suspense account - -

421,910 1,483,238

Silver - -

Others 37,120,099 4,113,498

942,098,182 884,280,720

1,159,913,477 1,070,435,322

9.1 Interest Receivable

Interest receivable on loans and advances 14,490,363 8,222,387

Interest receivable on Govt. securities 56,398,480 52,636,153

Interest receivables on other securities 7,874,444 9,843,056

Interest receivable on balance with other banks 139,052,008 115,453,006

217,815,295 186,154,602

Balance with First Security Islami Capital & Investment Limited

* Advance to supplier includes partial amount paid to vendor on account of purchasing of furniture & fixture and interior decoration to be

finalised and hence not yet transferred to fixed assets.

As of 31 December 2016, the Bank holds no premises not used by the Bank for its own or business purpose or any unused part of partially

used premises.

Books and journals

34

2016 2015

Amount in Taka

9.2 Preliminary Expenses

Consultancy Fees 27,054,401 54,108,803

Registration fees to RJSC & SEC 1,802,450 3,604,901

BSEC Application and Consent Fees 296,771 593,542

Office Rent 36,432,988 72,865,976

Other expenses 56,370 112,740

65,642,980 131,285,962

Tk 4.00 crore 2016 Tk 6.57 crore 2017 6.56 crore

10 Non-banking assets - -

- -

11 Borrowings from other banks, financial institutions and agents

In Bangladesh Note - 11.1 757,085,065 48,807,071

Outside Bangladesh Note - 11.2 - -

757,085,065 48,807,071

11.1 In Bangladesh

Call borrowing 660,000,000 -

Refinance against Green Banking from Bangladesh Bank 4,545,455 -

Refinance against Ten Taka account from Bangladesh Bank 7,994,500 -

Bangladesh Bank (Off-shore Banking Units) - -

Repo of Treasury Bills - -

6,008,333 600,000

Refinance against EDF loan from Bangladesh Bank 78,536,777 48,207,071

757,085,065 48,807,071

11.2 Outside Bangladesh - -

- -

11.3 Security against borrowings from other banks, financial institutions and agents

Secured (Treasury bills) - -

Unsecured 757,085,065 48,807,071

757,085,065 48,807,071

No non-banking asset is under the possession of the Bank as per BRPD circular no. 14 dated 25 June 2003 which is acquired as claims.

NRB Global Bank Limited did not acquire any such asset till 31 December 2016.

2015

Refinance against Woman Enterprise loan from Bangladesh Bank

As permitted by the Bank Company (Amendment) Act 2013, the Bank has taken the option of capitalizing its preliminary expenses in

accordance with the practices followed by some other new Banks in Bangladesh. The Management initially decided to fully amortize these

preliminary expenses over Two years period starting from 1 January 2014. However, considering the overall macro economic condition of

the Country and the Bank's operational performance since starting of commercial operation, Management has changed the proposed

amortization of these preliminary expenses and instead of two years decided to fully amortise these expenses as per the following schedule

as approved by the Board. This change in amortisation schedule has been considered as change in accounting estimate as per

Bangladesh Accounting Standards 8 and accordingly applied prospectively. Because of this change in accounting estimate current year's

amortisation expense is lower by Tk 7.2 crore and this shall be spread over the revised period.

35

2016 2015

Amount in Taka

11.4 Maturity grouping of borrowings from other banks, financial institutions and agents

Payable on demand - -

Up to 1 month 660,000,000 -

Over 1 month but within 3 months 7,994,500 -

Over 3 months but within 1 year 84,545,110 48,807,071

Over 1 year but within 5 years 4,545,455 -

Over 5 years - -

757,085,065 48,807,071

12 Deposits and other accounts

Current deposits and other accounts Note - 12.1 1,716,672,837 1,123,072,706

Bills payable Note - 12.2 144,609,092 60,351,751

Savings bank deposits Note - 12.3 1,549,816,494 743,974,875

Fixed deposits Note - 12.4 39,466,980,543 24,757,839,736

Bearer certificate of deposit - -

Other deposits 2,295,159 1,839,931

42,880,374,125 26,687,078,999

12.1 Current deposits and other accounts

Current deposits 924,979,399 533,254,030

Deposit margin on letters of credit 92,242,680 88,881,288

Deposit margin on letters of guarantee 32,720,879 28,797,507

Deposit margin on pay order 667,200

Interest payable on deposit 533,542,574 414,541,073

Withholding VAT/Tax/Excise duty payable to Government authority. 50,235,291 40,140,703

73,388,111 13,584,186

Security deposit and others 8,896,703 3,873,919

1,716,672,837 1,123,072,706

12.2 Bills Payable

Demand draft payable - -

Payorder payable 144,609,092 60,351,751

144,609,092 60,351,751

12.3 Savings bank deposits

NGB savings deposits 1,452,290,389 703,975,672

NGB freshers 1,399,027 1,031,135

NGB perfect 25,772,440 316

NGB queen 3,753,259 2,920,007

NGB junior 5,884,630 2,070,842

12,300,338 3,006,331

Farmers savings deposit 8,806,881 2,873,797

NGB staff savings deposit 39,609,530 28,096,775

1,549,816,494 743,974,875

12.4 Fixed deposits

Special Notice Deposit (SND) account 862,824,763 464,925,658

Term deposit account 29,070,754,313 21,264,010,501

Scheme deposit 9,533,401,467 3,028,903,577

39,466,980,543 24,757,839,736

NGB salary account

Foreign currency deposit

36

2016 2015

Amount in Taka

12.5 Deposit from banks inside Bangladesh

Uttara Bank Limited 500,000,000 350,000,000

Mercantile Bank Limited 200,000,000 -

Mutual Trust Bank Limited 200,000,000 -

Southeast Bank Limited 250,000,000 -

South Bangla Agriculture & Commerce Bank Limited 250,000,000 -

Eastern Bank Limited 300,000,000 -

Bank Asia Limited 200,000,000 -

Modhumoti Bank Limited 250,000,000 -

AB Bank Limited 100,000,000 -

Rupali Bank Limited 500,000,000 -

2,750,000,000 350,000,000

12.6 Sector-wise break-up of deposits and other accounts

Government 1,344,763,990 903,062,040

Deposit from banks 2,750,000,000 350,000,000

Other public 12,070,244,000 5,809,811,521

Foreign currency 73,388,111 13,584,186

Private 26,641,978,024 19,610,621,252

42,880,374,125 26,687,078,999

12.7 Payable on demand and time deposits

a) Demand deposits

Current deposits 924,979,399 533,254,030

Savings deposits (9%) 139,483,484 66,957,739

Foreign currency deposits 73,388,111 13,584,186

Security deposits 8,896,703 3,873,919

Sundry deposits 711,703,783 574,200,502

Bills payable 144,609,092 60,351,751

2,003,060,572 1,252,222,127

b) Time deposits

Savings deposits (91%) 1,410,333,010 677,017,136

Fixed deposits 29,070,754,313 21,264,010,501

Special notice deposits 862,824,763 464,925,658

Deposits under schemes 9,533,401,467 3,028,903,577

40,877,313,553 25,434,856,872

42,880,374,125 26,687,078,999

12.8 Maturity analysis of deposits

a) Maturity analysis of deposits from Banks

Payable on demand - -

Up to 1 month 1,200,000,000 -

Over 1 month but within 3 months 1,050,000,000 350,000,000

Over 3 months but within 1 year 500,000,000 -

Over 1 year but within 5 years - -

Over 5 years but within 10 years - -

Over 10 years - -

2,750,000,000 350,000,000

37

2016 2015

Amount in Taka

b) Maturity analysis of customer deposits

Payable on demand 1,716,672,837 1,123,072,706

Up to 1 month 3,959,513,670 4,496,063,673

Over 1 month but within 3 months 10,860,201,864 9,070,710,929

Over 3 months but within 1 year 16,883,604,690 7,737,153,179

Over 1 year but within 5 years 4,654,573,227 2,083,964,044

Over 5 years but within 10 years 2,030,530,969 1,821,523,912

Over 10 years 25,276,868 4,590,556

40,130,374,125 26,337,078,999

Total 42,880,374,125 26,687,078,999

13 Other liabilities

Provision for loans and advances Note - 13.1 364,574,451 251,025,625

Provision for off Balance Sheet Note - 13.2 50,337,958 16,088,062

Note - 13.3 536,345,842 152,409,779

Provision for deferred tax liability Note - 13.4 12,490,405 27,120,530

- 17,112,948

Interest suspense account Note - 13.5 19,731,508 18,346,482

Payable for sanchay patra 21,900,000 -

4,801,818 -

Expenditure and other payable 2,655,431 1,424,442

1,012,837,413 483,527,868

13.1 Provision for loans and advances

Movement in specific provision on classified loans and advances

Provision held as on 1 January 41,677,700 -

Less: Fully provided debts written off during the year - -

Add: Recoveries of amounts previously written off - -

Add: Specific provision made during the year for other accounts - 41,677,700

Less: Provision no longer required (22,338,007) -

Add: Net charge to profit and loss account - -

Provision held as on 31 December 19,339,693 41,677,700

Provision held as on 01 January 209,347,925 110,832,927

Less:Amount transferred to classified provision - -

Add:General provision made during the year 135,886,833 98,514,998


364,574,451 251,025,625

Provision for income tax

Movement in general provision on unclassified loans and advances

Provision for diminution in value of investments

Payable for gratuity

38

2016 2015

Amount in Taka

13.2

Provision held as on 01 January 16,088,062 12,205,595

Add:Amount transferred from classified provision - -

Add:Provision made during the year 34,249,896 3,882,467


13.3 Provision for income tax

Balance at 01 January 152,409,779 26,583,081

Add: Provision made during the year 383,936,063 125,826,698

536,345,842 152,409,779

Settlement of previous year's tax liability - -

Balance at 31 December 536,345,842 152,409,779

13.4 Deferred tax liability

Taka Taka Taka

630,124,182 594,096,352 36,027,831

4,801,818 - 4,801,818

634,926,000 594,096,352 31,226,013

532,047,421 464,246,097 67,801,324

532,047,421 464,246,097 67,801,324

40.00%

12,490,405

27,120,530

(14,630,125)

13.5 Interest suspense account

Balance as on 1 January 18,346,482 -

Add: Prior year adjustment - -

Add: Amount transferred to "interest suspense" account during the year 1,385,026 18,346,482

Less: Amount recovered from "interest suspense" account during the year - -

Less: Amount written-off during the year - -

Balance as on 31 December 19,731,508 18,346,482

Taxable temporary

difference Particulars

Provision for off-balance sheet exposures

Deferred tax has been calculated based on deductible/taxable temporary difference arising due to difference in the carrying amount of the

assets and its tax base in accordance with the provision of Bangladesh Accounting Standard (BAS)12 'Income Taxes"

Carrying amount

of balance sheet

Total

Deferred tax income accounted for during the year 2016

Assets

Assets

Deferred tax liability as on 31 December 2015

Deferred tax liability as on 31 December 2016

Deferred tax liability is arrived at as follows:

Tax base

Applicable tax rate

Fixed assets net of depreciation as on 31 December 2015

Total

Fixed assets net of depreciation as on 31 December 2016

Provision for gratuity

39

2016 2015

Amount in Taka

14 Share capital

1,200,000,000 ordinary shares of Taka 10 each 12,000,000,000 12,000,000,000

14.1 Issued, subscribed and fully paid up capital

425,000,000 ordinary shares of Taka 10 each fully paid up in cash 4,250,000,000 4,250,000,000

Bonus share - -

Rights share - -

4,250,000,000 4,250,000,000

14.2 Movement of share capital

No. of shares Amount No. of shares Amount

425,000,000 4,250,000,000 425,000,000 4,250,000,000

- - - -

Closing at the end of the year 4,250,000,000 4,250,000,000

14.3 Percentage of shareholdings at the closing date

Amount % Amount %

1,725,000,000 40.6% 4,250,000,000 100%

- 0% - 0%

- 0% - 0%

- 0% - 0%

- 0% - 0%

2,525,000,000 59.4% - 0%

4,250,000,000 100.00% 4,250,000,000 100%

14.4 Shareholding range on the basis of shareholdings as at 31 December 2016

No. of shares Percentage

0 - 0.00%

0 - 0.00%

0 - 0.00%

0 - 0.00%

0 - 0.00%

0 - 0.00%

0 - 0.00%

0 - 0.00%

1 1,000,000 0.24%

26 424,000,000 99.76%

27 425,000,000 100%

2015Particulars

Sponsors (NRB)

2015

Authorized capital is the maximum amount of share capital that the bank is authorized to issue to shareholders by its memorandum &

articles of association.

Others

Add: Bonus shares issued

Foreign investors

Non-resident Bangladeshi

General public

5,001 - 10,000

Less than 500

Shareholding range

30,001 - 40,000

Over 1,000,000

Balance at the beginning of the year

2016

Number of

shareholders

Financial institutions

10,001 - 20,000

500- 5,000

40,001 - 50,000

50,001 - 100,000

20,001 - 30,000

100,001 - 1,000,000

Shareholding

2016Particulars

The issued share capital of the Bank is the total nominal value of the shares of the Bank which have been issued to the shareholders and

remaining outstanding as on the reporting date.

40

2016 2015

Amount in Taka

14.5 Directors' shareholding as at 31 December 2016

Sl Status Closing

position

Percentage of

shareholding

1 Chairman 20,000,000 4.71%

2 Vice chairman 10,000,000 2.35%

3 Director 20,000,000 4.71%

4 Director 10,000,000 2.35%

5 Director 10,000,000 2.35%

6 Director 18,000,000 4.24%

7 Director 36,982,800 8.70%

8 Director 20,000,000 4.71%

9 Director 42,500,000 10.00%

10 Director 16,000,000 3.76%

11 Director 14,935,370 3.51%

12 Director 16,000,000 3.77%

13 Director 29,290,000 6.89%

14 Director 1,000,000 0.24%

15 Director 10,000,000 2.35%

16 Ind. Director - 0.00%

17 Ind. Director - 0.00%

- 274,708,170 64.64%

Capital adequacy ratio as per BASEL - III

2016 2015

Common Equity Tier-1 (Going-Concern Capital)

Fully paid up capital/ capital deposited with BB 4,250,000,000 4,250,000,000

Non-repayable share premium account - -

Statutory reserve 189,374,321 30,910,902

General reserve - -

Retained earnings 167,201,141 (97,346,597)

Dividend equalization account - -

Minority interest in subsidiaries - -

Share money deposit - -

Non-cumulative irredeemable preferance share - -

4,606,575,462 4,183,564,305

Amount in Taka

Mr. Nizam Chowdhury

Dr. Mohammed Faruque

Mr. Osman Gani representing Global Trading Corporation Ltd.

Name of the directors

Mr. Mohd. Ataur Rahman Bhuiyan

Mr. Belal Ahmed representing Padma Wears Limited

Mrs. Maimuna Khanam

Mr. Morshedul Alam representing Chemon CR Strips Ltd.

Mr. Ghulam Mohammed

Ms. Shahana Ferdous representing Portman Cements Ltd.

Mosammat Shajada Noor Begum

Mrs. Sarwar Jahan Maleque representing Karnafully Prakritik Gas Ltd.

Mr. Mohammed Kutub Uddowllah

Mr. Rashed Uddin Mahmud

In terms of section 13 (2) of the Bank Company (Amendment) Act, 2013 and Bangladesh Bank BRPD circular no. 18 dated 21 December

2014, and DOS circular no. 02 dated 4 March 2015, required capital of the Bank at the close of business on 31 December 2016 was Taka

4,000,000,000 as against available Common Equity Tier-1 capital of Taka 4,606,575,462.00 and supplementary capital of Taka

399,616,149.00 making a total capital of Taka 5,006,191,611.00 there by showing a surplus capital of Taka 775,489,651.00 at that date.

Details are shown below:

Ms. Danny Chowdhury

Mr. Arif Ahmed representing Shah Amanat Prakritik Gas Co. Ltd.

Mr. Md. Mostan Billah Adil repsenting Fatehabad Farm Ltd.

Mr. S.A.M Salimullah

41

2016 2015

Amount in Taka

Regulatory adjustments from Tier - I

- -

Shortfall in provision required against investment in share - 34,225,896

Goodwill and all other Intangible Assets - -

Reciprocal Crossholdings in the CET-1 Capital of Banking, Financial and Insurance Entities - -

- -

Investments in subsidiaries which are not consolidated (50% of Investment) - -

Others (if any) - -

Total deduction - 34,225,896

Total Common Equity Tier-1 Capital (a) 4,606,575,462 4,149,338,409

Additional Tier-1 Capital - -

- -

Tier-2 Capital (Gone-Concern Capital)

General provision on unclassified loans and advances 345,234,758 209,347,925

General provision on off balance sheet items 50,337,958 16,088,062

6,739,054 6,739,054

All Other preference shares - -

- -

Others (if any item approved by Bangladesh Bank)

402,311,770 232,175,041

Regulatory adjustments

2,695,621 1,347,811

Investment in own T-2 Instruments/Shares (as per Para 3.4.7 of Basel III Guidelines) - -

- -

- -

- -

Others if any - -

2,695,621 1,347,811

Total eligible Tier - II capital (b) 399,616,149 230,827,230

Total eligible capital (a+b) 5,006,191,611 4,380,165,639

Total assets including off balance sheet exposure 54,175,584,421 32,921,157,418

Total Risk weighted assets (RWA) 42,307,019,603 27,311,391,237

Required capital based on risk weighted assets (10% of RWA) 4,230,701,960 2,731,139,124

Investments in subsidiaries which are not consolidated (50% of Investment)

Revaluation Reserves as on 31 December, 2014 (50% of Fixed Assets and Securities & 10%

of Equities)

Shortfall in provision required against non performing loan

Revaluation Reserves for Fixed Assets, Securities & Equity Securities (follow Phase-in

deductions as per Basel III Guidelines)

Any investment exceeding the approved limit under section 26 ka(1) of Bank Company Act,

1991 (50% of Investment)

Subordinated debt/Instruments issued by the banks that meet the qualifying criteria for Tier 2

capital (as per Annex 4 of Basel III Guidelines)

Any investment exceeding the approved limit under section 26 ka(1) of Bank Company Act,

1991 (50% of Investment)

Total additional Tier-1 capital

Reciprocal crossholdings in the T-2 Capital of Banking, Financial and Insurance Entities

42

2016 2015

Amount in Taka

775,489,651 380,165,639

Capital to risk weighted assets ratio (CRAR):

Common Equity Tier-1 (minimum-5.5%) 10.89% 15.19%

On actual capital (minimum-10.625%) 11.83% 16.04%

15 Statutory reserve

Balance on 1 January 30,910,902 898,801

Addition during the year ( 20% of pre-tax profit) 158,463,419 30,012,101

Balance at 31 December 189,374,321 30,910,902

16 Revaluation reserve

Revaluation reserve on Government securities Note - 16.1 9,880,103 27,051,726

Asset revaluation reserve Note - 16.2 - -

9,880,103 27,051,726

16.1 Revaluation reserve on Government securities

2015

HTM HFT Total Total

27,051,726 - 27,051,726 13,478,108

- - - 13,573,618

17,171,623 - 17,171,623 -

9,880,103 - 9,880,103 27,051,726

16.2 Asset revaluation reserve

Balance at the beginning of the year - -

Add: Addition during the year - -

Less: Adjustment during the year - -

Balance as on 31 December - -

17 Surplus / (deficits) in profit and loss account

Balance on 1 January (97,346,597) (86,306,318)

Addition during the year 423,011,157 18,971,822

Transfer to statutory reserve (158,463,419) (30,012,101)

Cash dividend - -

Issue of bonus shares - -

Balance at 31 December 167,201,141 (97,346,597)

Add: Foreign currency translation gain/ (loss) - -

167,201,141 (97,346,597)

Balance as on 31 December

Particulars2016

Less: Adjustment during the year

Balance at the beginning of the year

Surplus Capital

Add: Addition during the year

43

2016 2015

Amount in Taka

18 Contingent liabilities of the bank

18.1 Acceptance and endorsement

Back to back bills (Foreign) 62,646,760 4,539,063

Back to back bills (Local) 63,909,725 40,216,004

Back to back bills (EPZ) 2,740,979 -

462,270,000 -

221,623,119 223,798,661

813,190,583 268,553,728

Less: Margin - -

813,190,583 268,553,728

18.2 Letters of guarantee

Letters of guarantee (Local) 3,829,846,413 638,922,902

Counter guarantees (Local) 35,438,362 118,250,052

Performance Guarantee 28,385,846 201,417,133

3,893,670,621 958,590,087

Less: Margin 32,720,879 28,797,506

3,860,949,742 929,792,581

Directors - -

- -

Banks and other financial institutions - -

Others 3,893,670,621 958,590,087

3,893,670,621 958,590,087

18.3 Letters of credit

288,290,916 336,762,149

5,965,217 -

516,815 -

Letter of credit (EPZ) - 22,358,160

32,161,660 3,256,920

Letter of credit Deferred (Foreign) - 19,285,200

326,934,608 381,662,429

Less: Margin 92,242,680 88,881,288

234,691,928 292,781,141

Government

Money for which the bank is contingently liable in respect of guarantees given favouring:

Back to back letter of credit (Local)

Cash bills defferrd(Local)

Cash bills defferrd(Foreign)

Back to back letter of credit (EPZ)

Letter of credit (Foreign)

Back to back letter of credit (Foreign)

44

2016 2015

19 Income statement

Income:

Interest, discount and similar income Note- 19.1 4,575,728,806 3,029,183,052

Dividend income 17,031,390 15,909,722

Fee, commission and brokerage Note- 19.2 43,515,524 39,236,716

Gains less losses arising from dealing in securities - -

Gains less losses arising from investment securities - -

Gains less losses arising from dealing in foreign currencies Note- 23 26,985,223 9,664,286

Income from non-banking assets - -

Other operating income Note- 19.3 29,424,182 30,774,159

Profit less losses on interest rate changes - -

4,692,685,126 3,124,767,935

Expenses:

Interest ,fee and commission Note- 19.4 2,557,559,670 1,876,519,837

Losses on loans and advances - -

Administrative expenses Note- 19.5 791,597,480 605,210,596

Other operating expenses Note- 34 280,032,040 222,312,306

Depreciation and repair of Bank's assets Note- 33 140,493,067 109,476,578

3,769,682,257 2,813,519,317

923,002,869 311,248,618

19.1 Interest, discount and similar income

Interest income from Loans and Advances 3,855,602,390 2,273,009,096

Interest on call loan 1,596,750 64,965,277

Interest on balance with other banks and financial institutions 429,863,304 489,670,419

Interest received from foreign bank 401,295 135,633

Going on sale of share 15,572,057 -

Interest received on commercial paper - 6,409,878

Interest received on subordinate bond 24,325,000 -

Interest received on Govt. bond 233,741,177 144,133,078

Interest received on treasury bills 21,020,052 51,747,807

4,582,122,025 3,030,071,188

Less: Loss on sale/revaluation of security trading 6,393,218 888,136

4,575,728,806 3,029,183,052

19.2 Fees, commission and brokerage

Commission Note- 23 43,515,524 39,236,716

Settlement fee - -

43,515,524 39,236,716

19.3 Other operating income

Charge on account maintenance fees 14,901,423 9,267,550

Service and other charges 4,383,435 7,901,654

Rent received from locker 354,100 201,000

Income received from rebate 279,849 7,382,098

Income from ATM services 3,437,650 1,790,480

Others earnings 6,067,725 4,231,377

29,424,182 30,774,159

Amount in Taka

45

2016 2015

Amount in Taka

19.4 Interest, fee and commission

Interest paid on deposits Note- 21 2,492,663,226 1,819,496,818

Note- 21 64,896,444 57,023,019

2,557,559,670 1,876,519,837

19.5 Administrative expenses

Salary and allowances Note- 25 455,046,916 337,447,303

Rent, taxes, insurance, electricity etc. Note- 26 280,830,460 215,072,045

Legal expenses Note- 27 761,547 776,498

Postage, stamp, telecommunication etc. Note- 28 13,176,307 10,993,433

Stationery, printings, advertisement etc. Note- 29 13,526,511 27,610,018

Managing Director's salary and fees Note- 30 10,880,000 10,137,097

Directors' fees Note- 31 17,059,489 2,886,702

Auditors' fees Note- 32 316,250 287,500

791,597,480 605,210,596

20 Interest income

Cash credit 1,212,751,573 666,899,228

Staff loan 10,368,586 8,131,583

Overdraft 1,146,174,113 716,389,400

Small and Medium Enterprise (SME) 48,456,766 6,865,276

Term loan 197,602,941 141,917,002

Documentary bill Purchases and discounted 1,105,874,134 652,039,437

House building Loan 18,865,960 8,838,259

Consumer credit scheme 11,261,796 5,801,815

Payment against documents 12,903,742 6,786,706

Loan against trust receipts 70,885,454 57,845,068

Agricultural and rural credit 14,443,451 798,795

Interest income from credit card 3,869,128 383,262

Other Loans and Advances 2,144,746 313,265

Total interest on loans and advances 3,855,602,390 2,273,009,096

Interest on call loans 1,596,750 64,965,277

Interest received from foreign bank 401,295 135,633

Interest on balance with other banks and financial institutions 429,863,304 489,670,419

4,287,463,739 2,827,780,425

21 Interest paid on deposits and borrowings

30,050,817 15,927,208

29,457,169 23,079,250

76,656,926 20,121,585

1,843,936,762 1,529,307,661

512,561,551 231,061,114

2,492,663,226 1,819,496,818

Bangladesh bank refinance 973,737 1,024,449

Call borrowing 63,922,708 55,998,570

64,896,444 57,023,019

(iii) Interest paid to foreign Bank account - -

2,557,559,670 1,876,519,837

Interest paid for borrowings

(i) Interest paid on deposits:

(ii) Interest paid for borrowings

Special Deposits under scheme

Special notice deposits

Monthly Savings Scheme

Fixed Deposit

Savings bank deposits

46

2016 2015

Amount in Taka

22 Investment income

Interest received on treasury bills /reverse repo 21,020,052 51,747,807

Interest received on Govt. bonds 233,741,177 144,133,078

Dividend received from shares 17,031,390 15,909,722

Gain on discounted bonds / bills - 51,073

Interest from debentures - -

Gain on sale of share 15,572,057 -

Interest received on commercial paper - 6,409,878

Interest received on subordinate bond 24,325,000 -

311,689,676 218,251,558

Less: Loss on revaluation of bonds 6,393,218 888,136

305,296,458 217,363,422

23 Commission, exchange and brokerage

Commission on L/Gs 19,248,872 10,109,249

Commission on bills and remittance 1,442,469 880,244

Commission on letter of credit 22,801,230 28,178,795

Commission on others 22,953 68,428

43,515,524 39,236,716

Gain on revaluation from foreign currency 26,985,223 9,664,286

70,500,747 48,901,002

24 Other operating income

Charge on account maintenance fees 14,901,423 9,267,550


Rent received from locker 354,100 201,000

Income received from rebate 279,849 7,382,098

Postage / telex / SWIFT/ fax recoveries 3,222,966 2,756,701

Income from ATM services 3,437,650 1,790,480

Credit card income 1,907,638 502,120

Others earnings 937,121 921,483

29,424,182 30,723,086

25 Salary and allowances

Basic pay 129,437,640 87,832,370

Allowances 213,999,736 144,703,040

Bonus 45,585,208 37,645,957

Bank's contribution to provident fund 12,237,076 7,987,413

Consolidated salary 27,503,644 44,715,615

Gratuity 4,801,818 -

Arrear salary 3,296,091 1,900,935

Salary to casual employees 18,185,703 12,661,973

455,046,916 337,447,303

26 Rent, taxes, insurance, electricity etc.

Rent, rates and taxes 239,792,788 188,167,530

Insurance 22,183,569 13,908,214

Power and electricity 18,854,103 12,996,301

280,830,460 215,072,045

47

2016 2015

Amount in Taka

27 Legal expenses

Legal expenses 227,007 244,048

Other professional charges 534,540 532,450

761,547 776,498

28 Postage, stamp, telecommunication etc.

Postage 1,444,359 1,498,360

Telegram, telex, fax and e-mail 610,728 286,080

Data communication 8,996,700 7,496,427

Telephone - office 2,048,004 1,687,271

Telephone - residence 76,516 25,295

13,176,307 10,993,433

29 Stationery, printing, advertisements etc.

Office and security stationery 6,486,080 6,277,992

Computer consumable stationery 1,625,436 1,101,882

Publicity and advertisement 5,414,995 20,230,144

13,526,511 27,610,018

30 Managing Director's salary and fees

Basic salary 4,800,000 4,606,452

Bonus 1,880,000 1,800,000

House rent allowance 1,200,000 1,151,613

House maintenance allowance 1,800,000 1,427,419

Leave fare assistance 1,200,000 1,151,613

10,880,000 10,137,097

31 Directors' fees

Meeting attendance fees 1,076,400 836,050

Meeting expenses 5,038,809 817,342

Directors travelling expenses 10,944,280 1,233,310

17,059,489 2,886,702

32 Auditors' fees

External audit fee 275,000 250,000

VAT on audit fee 41,250 37,500

316,250 287,500

33 Depreciation / amortization and repair of Bank's assets

Depreciation - (see annexure-A for detail)

Dep. on furniture and fixture 23,268,528 18,011,409

Dep. on machineries and equipment 41,735,797 31,518,563

Dep. on motor vehicle 14,904,509 6,655,245

Dep. on computer & peripheral 31,218,810 27,472,516

Dep. on ATM booth 10,565,312 6,195,402

Dep. on books and journals 161,004 53,668

Dep. on software & network acces 14,784,720 16,981,101

136,638,680 106,887,904

Repairs

Repair & maintenance 3,854,387 2,588,674

3,854,387 2,588,674

140,493,067 109,476,578

Each director of the bank is paid Tk.5,000/- per board meeting and per committee meeting up to 3 October 2015 and subsequently as per

BRPD circular no. 11 dated 4 October 2015 each director of the bank is paid Tk.8,000/- per board meeting and per committee meeting.

48

2016 2015

Amount in Taka

34 Other expenses

Entertainment 4,630,468 5,103,295

Car expenses 33,047,353 27,123,089

Bank charges and commission paid 3,040,569 2,444,082

Donation and subscription 1,990,560 22,747,792

Traveling expenses 5,134,573 4,295,448

Software maintance expenses 12,682,697 8,350,836

Business development 11,212,127 5,028,946

Expenses for corporate social responsibility 49,045,000 31,345,160

Expenses on training, seminer and workshop 1,935,390 1,748,755

Wages to casual labour 73,530 70,560

Local Conveyance 2,540,915 2,027,556

Finance charge for lease asset 14,631,228 14,631,228

Ammortization of preliminary exp. 65,642,982 40,000,000

26,013,536 20,687,341

Branch opening expenses 3,570,924 1,909,650

Expenses for crokeries and cutleries 289,886 124,958

Medical expenses 2,704,994 2,647,119

Sponsorship expenses 135,000 3,146,845

SWIFT Charge 2,602,870 1,899,582

Expenses for credit card 2,513,796 3,416,678


Annual General Meeting expenses 400,000 300,000

Holiday banking allowances 1,532,850 1,349,780

ATM operation expenses 18,365,577 8,377,191

Miscellaneous expenses 7,501,155 4,562,830

280,032,040 222,312,306

35 Provision for loans, off balance sheet exposure & other assets of the Bank

Provision for classified loans and advances (22,338,007) 41,677,700

Provision for unclassified loans and advances 135,886,833 98,514,998

Provision for off-shore banking units - -

Provision for other assets - -

Provision for off-balance sheet exposure 34,249,896 3,882,467

Provision for diminution in value of investments (17,112,948) 17,112,948

130,685,774 161,188,113

36 Tax expenses

Current tax Note- 13.3 383,936,063 125,826,698

Deferred tax Note- 13.4 (14,630,125) 5,261,985

369,305,938 131,088,683

37 Receipts from other operating activities


29,424,182 30,723,086

38 Payments for other operating activities

Rent, rates and taxes (280,830,460) (215,072,045)

Legal expenses (761,547) (776,498)

Postage and communication charges, etc. (13,176,307) (10,993,433)

Directors' fees (17,059,489) (2,886,702)

Other expenses (218,559,695) (185,188,480)

(530,387,498) (414,917,160)

Security and Cleaning

49

2016 2015

Amount in Taka

39 Increase / (decrease) of other assets

Closing balance


Prepaid expenses 2,029,214 105,008


Advance rent 454,298,869 480,626,317

Security deposit 638,378 2,498,379

Balance with First Security Islami Capital & Investment Limited 421,910 1,483,238

Others 37,120,099 4,113,496

585,518,284 614,486,880

Opening balance


Prepaid expenses 105,008 1,033,189


Advance rent 480,626,317 437,145,140

Security deposit 2,498,379 482,345

Balance with First Security Islami Capital & Investment Limited 1,483,238 -

Others 4,113,496 3,664,347

614,486,880 480,477,249

28,968,596 (134,009,631)

40 Increase / (decrease) of other liabilities

Closing balance

Interest suspense account 19,731,508 18,346,482

Payable for sanchay patra 21,900,000 -

Payable for gratuity 4,801,818 -


49,088,757 19,770,923

Opening balance

Interest suspense account 18,346,482 -


19,770,924 4,602,280

29,317,833 15,168,643

41 Earnings Per Share (EPS)

As per year end position of share

Profit attributable to the ordinary shareholder 423,011,157 18,971,822

Number of Ordinary shares outstanding (Denominator) 425,000,000 425,000,000

Earnings per share (EPS) 1.00 0.04

Earnings per share has been calculated in accordance with BAS 33 "Earnings Per Share (EPS)".

50

2016 2015

Amount in Taka

42 Number of employees

43 Disclosure on Audit Committee

a) Particulars of Audit Committee

1Independent

DirectorChairman

2 Director Member

3 Director Member

4 Director Member

5Independent

DirectorMember

b) Meetings held by the Audit Committee during the year by date:

44

a) Disclosure of transaction regarding Directors and their related concerns

SL.

no.Relationship Amount

i) Common Director 4,671,551,473

ii) Common Director 308,575,000

b) Nil

Status with bank

Mr. Mohammed Kutub Uddowllah

Name of Party

Holding Date

Mr. S.A.M Salimullah

Under S.S.C.

2

Mosammat Shajada Noor Begum

SL.

no.

The audit committee of the Board was duly constituted by the Board of Directors of the Bank in accordance with the BRPD circular no. 11

dated 27 October 2013 of Bangladesh Bank. Pursuant to the BRPD circular no. 08 dated 19 June 2011 and SEC notification no.

SEC/CMRRCD/2006-158/129/Admin/44 dated 7 August 2012 on Corporate Governance, the current Committee is Constituted with the

following 05 (Five) members of the Board:

The number of employees engaged for the whole year or part thereof who received a total remuneration of Tk. 36,000 p.a. or above were

738.

Educational QualificationName

Graduation in Global Fashion Management.Mr. Rashed Uddin Mahmud

Master of Science (M.Sc) and C.E.M.

Status with

committee

Bachelor of Science(B.Sc)

9th

13-February-2016

19-June-2016

Master of Business Administration (MBA)

Mr. Arif Ahmed

1 8th

Sl. no. Meeting no.

07-September-2016

Related Party Disclosures

3

04-December-201611th4

10th

Fixed deposit

Nature of Transaction

Shares issued to Directors and Executives without consideration or exercisable at a discount.

Reliance Finance Limited Subordinate bond

Reliance Finance Limited

51

2016 2015

Amount in Taka

c)

SL.

no.Amount

i) Nil

ii) Nil

iii) Nil

iv) Nil

v) Nil

d) Nil

e)

Sl.

no.Amount

i) Nil

ii) Nil

45 i) Annexure-F

46 i) Not Applicable

47

Particulars

Amount of guarantees and commitments arising from other off-balance sheet exposures

Business other than banking business with any related concern to the Directors as per Section 18(2) of the Bank

Companies Act, 1991.

Amount of provision against loans and advances given to related party

Amount of transaction regarding loans and advances, deposits, guarantees and commitment as on 31

December 2016

Amount of transactions regarding principal items of deposits, expenses and commission

Lending to related parties is effected as per requirements of Section 27(1) of the Bank Companies Act

1991 amended up to 2013

Lending Policies to Related Parties

Particulars

Disclosure of transaction regarding Directors and their related concerns


Lease agreement made with the Sponsor Director & Independent Director

Service receiving companies where the Directors interest subsisted during the year

Events after the Reporting Period

Approval of the financial statements

The financial statements of the Bank has been approved by the Board of Directors at its 28th Board meeting held on 23 March

2017.

Financial Highlights as at 31 December 2016 are shown in

52

Annexure - A

Opening

Balance

Addition During

the Year

Adjustment

During the Year

Closing

Balance

Opening

Balance

Dep. During the

Year

Adjustment

During the Year

Closing

Balance

Tangible assets

Furniture and fixture 182,775,674 102,043,010 - 284,818,684 10% 26,520,875 23,268,528 - 49,789,403 235,029,281

Machineries and equipment 184,892,939 66,054,438 - 250,947,377 20% 47,583,898 41,735,797 - 89,319,695 161,627,682

Motor vehicle 50,701,836 35,800,000 - 86,501,836 20% 10,858,898 14,904,509 - 25,763,407 60,738,429

Computer and peripherial 153,230,415 14,398,660 - 167,629,075 20% 41,014,096 31,218,810 - 72,232,906 95,396,169

ATM 44,017,597 13,521,583 57,539,180 20% 6,686,116 10,565,312 17,251,428 40,287,752

Books and journals 805,000 - - 805,000 20% 53,668 161,004 - 214,672 590,328

616,423,461 231,817,691 - 848,241,152 132,717,551 121,853,960 - 254,571,511 593,669,641

Intangible assets

Software 73,649,406 2,897,750 - 76,547,156 20% 25,307,895 14,784,720 - 40,092,615 36,454,541

73,649,406 2,897,750 - 76,547,156 25,307,895 14,784,720 - 40,092,615 36,454,541

Total as on 31 December 2016 690,072,867 234,715,441 - 924,788,308 158,025,446 136,638,680 - 294,664,126 630,124,182

Total as on 31 December 2015 538,694,325 151,378,542 - 690,072,867 51,137,542 106,887,904 - 158,025,446 532,047,421

Depreciation

Rate

As on 31 December 2016

CostWritten Down

Value

NRB Global Bank LimitedFixed Assets Schedule

Name of Assets

Amount in Taka

53

i) Geographical Segment

Annexure-B

Inside

Bangladesh

Outside

Bangladesh Total

4,692,685,126 - 4,692,685,126

- - -

4,692,685,126 - 4,692,685,126

2,135,125,456 - 2,135,125,456

1,212,122,587 - 1,212,122,587

130,685,774 - 130,685,774

792,317,095 - 792,317,095

369,305,938 - 369,305,938

423,011,156 - 423,011,156

49,266,752,168 - 49,266,752,168

49,266,752,168 - 49,266,752,168

ii) Business Segment

Particulars Conventional

Banking Islamic Banking Investment Total

Income 4,692,685,126 - - 4,692,685,126

Less: Inter segmental income - - - -

Total income 4,692,685,126 - - 4,692,685,126

Operating profit (Profit before unallocated expenses and tax) 2,135,125,456 - - 2,135,125,456

Allocated expenses 1,212,122,587 - - 1,212,122,587

Provision against loans and advances, Others 130,685,774 - - 130,685,774

Profit / (loss) before tax 792,317,095 - - 792,317,095

Income tax including deferred tax 369,305,938 - - 369,305,938

Net profit 423,011,156 - - 423,011,156

Segment assets 49,266,752,168 - - 49,266,752,168

Segment liabilities 49,266,752,168 - - 49,266,752,168

Less: Inter-segmental income

Total income

Operating profit (Profit before unallocated expenses and tax)

Allocated expenses


Financial Reporting by Segment of the Bank

Particulars

Income

Segment liabilities

Provision against loans and advances, others

Profit / (loss) before tax

Income tax including deferred tax

Net profit

Segment assets

54

Sl no. Name of DirectorsStatus with

NRBGBLEntities where they have interest Status % of Interest

Trade Balance USA Corporation President 50%

NRB USA Inc. Chairman 100%

M/S. Unitex Proprietor 100%

Unitex Spinning Limited Managing Director 60%

Padma Wears Limited Managing Director 80%

Gianbeen Sung Trading (L.L.C.) Managing Director 29%

AFA Steel Industries Ltd. Chairman 25%

MAX Automobile Products Ltd. Managing Director 51%

Lub House Industries Limited Managing Director 75%

MAX Industries Limited Managing Director 90%

MAX Power Limited Managing Director 25.90%

MAX Pre Stress Limited Managing Director 60%

MAX Building Technologies Ltd. Chairman 60%

Oscar Trade Syndicate Proprietor 100%

Toma Construction & Co. Ltd. Managing Director 60%

Toma Properties Limited Chairman 99%

Toma Concrete Limited Managing Director 75%

Max Power Limited Director 20%

Vatican Properties Limited Chairman 35%

Orchard Sweaters Ltd. Managing Director 95%

Hotel Orchard Plaza Ltd. Chairman 25%

Orchard Developer & Construction Ltd. Managing Director 70%

Bengal Telecom Company Ltd. Managing Director 70%

Orchard International Ltd. Managing Director 70%

Orchard Hotels & Resorts Ltd. Managing Director 65%

Orchard Industries Ltd. Managing Director 65%

Mecca Cola Limited Managing Director 70%

Royal Aviation Services Ltd. Managing Director 75%

Orchard Agro Park Ltd. Managing Director 60%

Orchard Marketing Company Ltd. Managing Director 70%

Gulf Aviation Ltd. Managing Director 60%

6 Mr. Arif Ahmed representing Shah Amanat Prakritik Gas Co. Ltd. Director M/s Arif Traders Owner 100%

7 Mr. Osman Gani representing Global Trading Corporation Ltd. Director Not Applicable Not applicable N/A

8 Mr. Rashed Uddin Mahmud Director Global Fashion Makers, Corp. President 100%

Avenue Overseas Ltd. Director 50%

Reliance Finance Limited Director 5.28%

Director Chemon Ispat Ltd. Managing Director 47.50%

S. Alam Super Edible Oil Ltd. Managing Director 35%

JASCO Bangladesh Limited. Director 30%

JASCO Capital Management Ltd. Vice Chairman 22%

12 Mr. Md.Mostan Billah Adil representing Fatehabad Farm Ltd. Director M/S Mostan Billah Adil Owner 100%

M/S Shahnaj Trading Owner 100%

S Alam Edible Oil Ltd. Director 30%

Galco Steel (BD) Ltd. Managing Director 51%

14 Ms. Danny Chowdhury Director Trade Balance USA Corporation Director 50%

15 Mosammat Shajada Noor Begum Director Rashad Industries Director 10%

16 Mr. Mohammed Kutub UddowllahIndependent

DirectorD. S. Line Director and CEO 100%

17 Mr. S.A.M SalimullahIndependent

DirectorNot Applicable Not Applicable N/A

Chairman

Mr. Belal Ahmed representing Padma Wears Ltd.

3

4

10

5 Director

Director

Vice

Chairman

Mr. Nizam Chowdhury

Director

Dr. Mohammed Faruque

Ms.Shahana Ferdous representing Portman Cements Ltd.13

11

9 Mrs. Maimuna Khanam Director

Director

2

1

Annexure - C


Name of Directors and their interest in different entities

Mrs.Sarwar Jahan Maleque , representing Karnaphuli Prakritik Gas Ltd. Director

Mr. Morshedul Alam representing Chemon CR Strips Ltd.

Mr. Ghulam Mohammed

Mr. Mohd. Ataur Rahman Bhuiyan

55

Annexure - D

FC Exchange Equivalent FC Exchange Equivalent

Amount Rate Taka Amount Rate Taka

Mashreq Bank, New York CD US $ 622,881.25 79.25 49,363,339 192,402 78.55 15,113,187

Mashreq Bank, London CD EURO € 48,239.82 83.54 4,030,152 140,000 86.32 12,084,702

Mashreq Bank, London CD GBP£ 66,048.45 97.81 6,460,318 25,326 119.45 3,025,085

United Bank. Kolkata CD ACU $ 111,266.84 79.25 8,817,897 476 78.55 37,382

AB Bank, Mumbai CD ACU $ 131,879.67 79.25 10,451,464 130,553 78.55 10,254,930

NIB Bank, Pakistan CD ACU $ 923.66 79.25 73,200 2,880 78.5500 226,256

Total 981,240 79,196,370 491,637 40,741,542


Balance with other banks-outside Bangladesh (Nostro Account)


Name of the Bank Account Type

20152016

Currency Type

56

2016 2015

1 Paid-up capital 4,250.00 4,250.00

2 Total capital 5,006.19 4,380.17

3 Capital surplus / (deficit) 1,006.19 380.17

4 Total assets 49,266.75 31,430.03

5 Total deposits 42,880.37 26,687.08

6 Total loans and advances 34,958.29 20,846.13

7 Total Contignent liabilities and commitment 4,908.83 1,491.13

8 Credit deposit ratio 81.69% 78.02%

9 Percentage of classified loans against total loans and advances 0.42% 0.64%

10 Profit after tax and provision 423.01 18.97

11 Amount of classified loans during current year 146.31 132.39

12 Provisions kept against classified Loan 19.34 41.68

13 Provision surplus / (deficit) - -

14 Cost of fund 9.60% 11.54%

15 Interest earning assets 44,824.93 27,962.14

16 Non-interest earning assets 4,441.82 3,467.89

17 Return on investment (ROI) 9.58% 0.45%

18 Return on assets (ROA) 0.26% 0.02%

19 Income from investment 305.30 217.36

20 Earnings per share (Taka) 1.00 0.04

21 Net Income per share (Taka) 1.00 0.04

22 Price Earning Ratio (Taka) 10.05 224.02

(Taka in million)

Highlights


Sl. no. Particulars

Annexure - F

57

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