state bank of india · pdf filesbi maintained capital in the form of deposit and lien of...

2016 2015

PROPERTY AND ASSETS

Cash 03 2,361,501,661 537,300,701

Cash in hand (Including foreign currency) 30,902,087 33,878,228

Balance with Bangladesh Bank and its agent bank(s) (Including foreign currency) 2,330,599,574 503,422,473

Balance with other banks and financial institutions 04 873,482,178 365,256,177

Inside Bangladesh 11,811,434 28,755,594

Outside Bangladesh 861,670,744 336,500,583

Money at call and short notice 05 1,380,000,000 1,810,000,000

Investments 06 7,949,618,992 8,295,526,431

Government 7,946,480,102 8,292,387,541

Others 3,138,890 3,138,890

Loans and advances 07 12,536,423,732 10,202,895,793

Loans, cash credit, overdrafts etc. 4,357,559,530 4,766,420,918

Bills purchased & discounted 8,178,864,202 5,436,474,875

Fixed assets including premises, furniture and fixtures 08 86,087,904 84,231,987

Other assets 09 575,411,895 956,223,934

Non-banking assets 10 - -

Total property and assets 25,762,526,362 22,251,435,023

LIABILITIES AND CAPITAL

Liabilities

Borrowings from other banks, financial institutions and agents 11 9,017,051,882 5,728,327,960

Deposit and other accounts 12 7,956,061,008 7,040,175,836

Current & other accounts 3,129,877,776 2,107,961,121

Saving deposits 495,485,884 464,115,751

Fixed deposits 3,372,359,542 3,815,822,651

Other deposits 958,337,806 652,276,313

Other liabilities 13 1,278,317,130 1,382,602,232

Total liabilities 18,251,430,020 14,151,106,028

Capital and shareholders' equity

Fund deposited with Bangladesh Bank 14 6,915,097,378 7,213,626,369

Surplus in profit and loss account/ Retained earnings 15 555,987,013 808,672,795

Other reserve 16 40,011,951 78,029,831

Total shareholders' equity 7,511,096,342 8,100,328,995

Total liabilities and shareholders' equity 25,762,526,362 22,251,435,023

(0) (0)

Country Head

State Bank of India Bangladesh Operations

Balance Sheet

As at December 31, 2016

Domestic and Off-shore Banking Unit

NotesAmount in Taka

Head of Risk Management Department

HOWLADAR YUNUS & CO.

Chartered Accountants

Dated: Dhaka-February 27, 2017

The accompanying notes form an integral part of these financial statements

Signed as per our report of even date

3

2016 2015

Off-Balance Sheet Items

Contingent Liabilities

Acceptances and endorsements - -

Letter of guarantees 19,190,088,926 19,595,943,443

Irrevocable letter of credits 1,735,179,160 1,076,586,029

Bills for collection - -

Other contingent liabilities - -

Total contingent liabilities 17 20,925,268,087 20,672,529,472

Other commitments

Documentary credits and short term trade related transactions - -

Forward assets purchased and forward deposits placed - -

Undrawn note issuance and revolving underwriting facilities - -

Undrawn formal standby facilities, credit lines and other - -

Commitments- lease hold assets - -

Total other commitments - -

Total Off-Balance Sheet items including contingent liabilities 20,925,268,087 20,672,529,472

Country Head





NotesAmount in Taka


The accompanying notes form an integral part of this balance sheet.

4

2016 2015

Operating Income

Interest income 18.1 869,762,833 912,647,679

Interest paid on deposits and borrowing etc. 19 384,499,298 443,728,722

Net interest income 485,263,535 468,918,958

Investment income 20 477,860,493 538,532,052

Commission, exchange and brokerage 21 797,253,952 702,763,652

Other operating income 22 1,894,624 2,781,433

1,277,009,069 1,244,077,137

Total operating income 1,762,272,605 1,712,996,095

Salaries and allowances 23 107,697,679 107,747,840

Rent, taxes, insurance, electricity etc. 24 73,486,090 72,071,327

Legal expenses 1,461,468 2,835,445

Postage, stamps, telecommunication etc. 25 7,805,467 4,233,627

Stationery, printing, advertisement etc. 26 8,899,903 8,719,552

Chief Executive's salary & fees - -

Directors' fees & expenses - -

Auditors' fee 27 300,000 345,000

Charges on loan losses - -

Depreciation and repairs to bank's assets 28 22,256,125 22,900,391

Other expenses 29 162,466,684 124,272,222

Total operating expenses 384,373,416 343,125,404

Profit/(loss) before provisions 1,377,899,189 1,369,870,691

Provision for 30

Loans and advances 287,164,671 25,425,343

Provision for diminution in value of investments - -

Off-balance sheet items 2,527,386 32,394,721

Off-shore Banking Unit 35,431,743 8,926,545

Total provision 325,123,800 66,746,609

Profit/(loss) before taxes 1,052,775,389 1,303,124,081

Provision for Tax

Current tax expense 13.5 440,000,000 385,000,000

Deferred tax expense/ (income) 13.6 2,468,142 1,183,981

442,468,142 386,183,981

Total profit/(loss) after taxes 610,307,247 916,940,101

Appropriations

Statutory reserve - -

General reserve - -

Dividend - -

Retained earnings 610,307,247 916,940,101

836,522,444.00

226,215,197.04

Country Head




Notes

The accompanying notes form an integral part of this profit and loss account.


Amount in Taka


Bangladesh Operation

State Bank of India

Profit and Loss Account

For the year ended December 31, 2016


5

Note

2016 2015

A. Cash flows from operating activities

Interest receipts 1,335,681,195 1,732,532,109

Interest payment (415,387,350) (524,678,281)

Dividend received 2,855,903 2,855,903

Fees & commissions receipts 735,970,232 651,416,742

Received from loan write off recovery - -

Cash payments to employees (99,565,717) (101,669,841)

Cash payments to suppliers - -

Income tax paid (256,440,866) (432,101,311)

Receipts from other operating activities 32 1,894,624 1,117,676

Payment for other operating activities 33 (276,199,065) (211,293,191)

Operating profit/(loss) before changes in operating assets & liabilities 1,028,808,956 1,118,179,806

Increase/decrease in operating assets & liabilities

Loans & advances to customers (2,311,380,337) (1,012,529,199)

Other assets (261,322,164) (295,734,887)

Deposits from other Banks 3,897,025,248 1,005,951,322

Deposits from customers 915,724,724 594,406,037

Other liabilities (398,314,683) (546,080,459)

Cash utilised in operating assets & liabilities 1,841,732,789 (253,987,185)

Net cash from operating activities 2,870,541,745 864,192,620

B. Cash flows from investing activities

Payments for purchase of securities 143,222,656 (512,304,178)

Investment in prize bond 856,500 77,300

Purchase/sale of property, plant & equipment 1,102,984 (12,305,247)

Net cash used in investing activities 145,182,140 (524,532,125)

C. Cash flows from financing activities

Receipts from the capitalization (1,176,000,000) -

Net cash flows from financing activities (1,176,000,000) -

Net increase/decrease in cash 1,839,723,884 339,660,495

Effects of exchange rate changes on cash & cash equivalent 61,846,577 51,346,910

Cash and cash equivalents at the beginning of year 2,713,471,178 2,322,463,773

Cash and cash equivalents at the end of year (Note-17.4) 34 4,615,041,639 2,713,471,178

Country Head Head of Risk Management Department




The accompanying notes form an integral part of this profit and loss account.


Amount in Taka



Cash Flow Statement


6

7,213,626,369 78,029,831 808,672,796 8,100,328,996

- - 282,987,563 282,987,563

Net profit for the year (DBU) - - 327,319,684 327,319,684

Amortisation gain on HTM Securities transferred to P&L - (78,029,831) - (78,029,831)

Amortization gain on HTM Securities - 40,011,951 - 40,011,951

Fund untilised which were kept as Capital 877,471,009 - (877,471,010) (0)

(1,176,000,000) - - (1,176,000,000)

Excess Provision for Income Tax written back - 14,477,979 14,477,979

- -

6,915,097,378 40,011,951 555,987,012 7,511,096,341

6,462,789,045 42,223,747 773,449,677 7,278,462,469

- - 268,129,819 268,129,819

Net profit for the year (DBU) 648,810,282 648,810,282

Fund unutilized which were kept as Capital 1,067,215,719 - (1,067,215,719) -

Fund released as Capital (316,378,395) - - (316,378,395)


Amortization gain on HTM Securities - 78,029,831 - 78,029,831

Excess Provision for Income Tax written back - 62,424,557 62,424,557

- - 123,074,180 123,074,180

7,213,626,369 78,029,831 808,672,796 8,100,328,995

Country Head

State Bank of India

Bangladesh Operations


For the year ended 31 December 2016

Total

Statement of Changes in Equity

(Figures in Taka)

ParticularsFund deposited with

Bangladesh BankOther Reserve

Surplus in Profit &

Loss Account





Balance as of 31 December 2015

Balance as of 01 January 2016

Net profit for the year (OBU)

Fund released as Capital



Net profit for the year (OBU)


OBU profit for the year 2013 has since been taken as capital as per

Group instruction

OBU profit for the year 2013 has since been taken as capital as per

Group instruction

7

(Figures in Taka)

0 - 1 1 - 3 3 - 12 1 - 5 Above 5

Month Months Months Years Years

Assets

Cash in hand 30,902,087 - - - - 30,902,087

Balance with Bangladesh Bank 2,330,599,574 - - - - 2,330,599,574

Balance with other bank, Other Banks and financial Institutions

(Including foreign currencies)873,482,178 - - - - 873,482,178

Money at call and on short notice 1,380,000,000 - - - - 1,380,000,000

Investments 57,800 1,656,749,052 2,832,205,953 979,671,970 2,480,934,216 7,949,618,992

Loans and advances 239,773,281 1,897,030,782 8,770,811,235 728,847,578 899,960,856 12,536,423,732

Fixed assets including premises, furniture & fixtures - - - - 86,087,904 86,087,904

Other assets - - - - 575,411,895 575,411,895

Non-banking assets - - - - - -

Total Assets 4,854,814,920 3,553,779,834 11,603,017,188 1,708,519,548 4,042,394,871 25,762,526,361

LIABILITIES

Borrowings from Bangladesh bank, other Banks,financial institutions

and agents - 9,017,051,882 - - - 9,017,051,882

Deposits & other accounts 2,368,653,920 1,448,410,753 776,478,251 1,077,979,306 2,284,538,778 7,956,061,007

Provision & Other Liabilities - 178,416,912 333,993,866 501,396,271 7,775,606,423 8,789,413,472

Total liabilities 2,368,653,920 10,643,879,546 1,110,472,117 1,579,375,577 10,060,145,201 25,762,526,361

Amount of net liquidity difference 2,486,161,000 (7,090,099,712) 10,492,545,071 129,143,971 (6,017,750,330) 0

Net result of the Liquidity Statement represents the 'Shareholders Equity' of the Bank.

Country Head

Total


State Bank of India



Liquidity Statement

(Assets & Liabilities Maturity Analysis)

Particulars






8

1. Corporate information

1.2 Principal activities

1.3 Capital structure of the Bank

2. Significant accounting policies and basis of preparation of financial statements

2.1 Basis of accounting

2.2 Basis of consolidation

2.3 Use of estimates and judgments

2.4 Foreign currency transactions

i. Functional and presentational currency

ii. Foreign currency transaction

2.5 Taxation

State Bank of India



The financial statements, namely, Balance Sheet, Profit & Loss Accounts, Cash Flow Statement, Statement of Changes in Equity, Liquidity

Statement and relevant notes and disclosure thereto, are prepared on a going concern basis under historical cost conversion, and in

accordance with First Schedule of the Bank Company Act 1991, as amended BRPD circular no. 14 of 25 June 2003.

The principal activities carried out a comprehensive range of financial services in Bangladesh including retail banking, commercial banking,

corporateand institutional banking, global markets, global trade and receivable finance, payents and cash management and custody and

clearing.


Notes to Financial Statements

The State Bank of India incorporated in India under the State Bank of India Act 1955. State Bank of India has been operating in

Bangladesh since 05 May 1975. It operates its activities through six branches – Two in Dhaka, one in Chittagong, one in Sylhet, one in

Rajshahi and in Khulna. Apart from these branches, the bank has two OBU units; one in Dhaka and another in Chittagong.

A separate set of records for consolidating the Balance Sheet and Profit and Loss Accounts of the branches are maintained at the Country

Office of the Bank based on which these financial statements have been prepared.

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

The preparation of the financial statements in conformity with BFRS requires management to make judgments, estimates and assumptions

that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. The estimates and

associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the

circumstances, the results of which form the basis of making the judgments about carrying amounts of assets and liabilities that are not

readily apparent from other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting

estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the

revision or future periods, if the revision affects both current and future periods.

Financial statements of the Bank are presented in Taka, which is the Bank's functional and presentation currency.

Foreign currency transactions are converted into equivalent Taka currency at the ruling exchange rates on the respective dates of

such transactions as per BAS-21 "The effects of Changes in Foreign Exchange Rates".

SBI maintained capital in the form of deposit and lien of securities with Bangladesh Bank under section 13(3) of the Bank Company Act,

1991 and presented under the guidelines of BRPD circular No. 14 dated 25 June 2003.

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

prevailing buying and selling rates of the relevant foreign currencies at that date except "Balances with other Banks and Financial

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

November 2004. Differences arising through buying and selling transactions of foreign currencies on different dates of the year have

been adjusted by debiting/ crediting exchange gain or loss account.

9

2.5.1 Current tax

2.5.2 Deferred tax

2.6 Assets and basis of their valuation

2.6.1 Cash and cash equivalents

2.6.2 Investments

2.6.2.1 Held to maturity (HTM)

2.6.2 Loans and advances

(a)

(b)

(c)

Interest on loans and advances is calculated on a daily product basis but charged and accounted for quarterly on accrual basis.

Interest on classified loans and advances is kept in interest suspense account as per directives of Bangladesh Bank and such interest

is not accounted for as income until realized from borrowers.

The current tax payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the Profit and Loss

Statement because it excludes items of income or expense that are taxable or deductible. The Bank's liability for current tax is calculated

using tax rates that have been enacted or substantively enacted by the date of Balance Sheet.

Provision for current income tax has been made @ 42.5% on accounting profit made by the Bank after considering some of the add backs

of income and disallowances of expenditure as per Income Tax Ordinance 1984.

Deferred tax liabilities are the amount of income taxes payable in future periods in respect of taxable temporary differences. Deferred tax

assets are the amount of income taxes recoverable in future periods in respect of deductible temporary differences. Deferred tax assets and

liabilities are recognised for the future tax consequences of timing differences arising between the carrying values of assets, liabilities,

income and expenditure and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates and tax laws that have

been enacted or substantially enacted at the date of Balance Sheet. The impact on the account of changes in the deferred tax assets and

liabilities has also been recognised in the Profit and Loss Accounts as per BAS 12 “Income Taxes”.

Unquoted Shares (ordinary) Cost Cost

Interest is not charged on bad and doubtful loans and advances from the date of filing money suits against the borrowers.

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

Bangladesh Bank's BCD circular nos. 34 of 16 November 1989, 20 of 27 December 1994 and 12 of 04 September 1995 and BRPD

circular nos. 16 of 06 December 1998, 9 of 14 May 2001, 2 of 15 February 2005, 9 of 20 August 2005, 17 of 6 December 2005, 5 of

5 April 2008, 07 of 14 June 2012, 14 of 23 September 2012, 19 of 27 December 2012 and 5 of 29 May 2013 respectively at the

following rates:

Treasury Bonds (HTM) CostCost / Amortized

Cost

Prize Bond & Other Bond Cost None

Cash and cash equivalents include currency notes and coins on hand, balances held with Bangladesh Bank and most liquid financial assets

which are subject to insignificant risk of changes in their fair value, and are used by the Bank to meet its short term obligations.

All investments securities are initially recognized at cost, including acquisition charges associated with the investment. Premiums are

amortized and discount accredited, using the effective yield method and are taken to discount income. The valuation method of Marking to

Market for investments used are:

Amortized cost

Investments which have "fixed or determinable payments' and fixed maturity that the group has the positive intent and ability to held to

maturity, other than those that meet the definition of 'Held at amortized cost others' are classified as held to maturity. These investment are

subsequently measured at amortized cost, less any provision for impairment in value. Amortized cost is calculated by taking into account

any discount or premium in acquisition. Any gain or loss on such investments is recognized in the statement of income when the

investment is derecognized or impaired as per IAS -39 " Financial Instruments : Recognition and Measurement"

Value of Investments has been shown as under:

Investment ClassInitial

Recognition Recording of changes

Increased or decreased in value to equity.

No amortization for at per Investment / Amortized Gain

to Revaluation reserve/ Loss to P&L (in case of Discount

or Premium)

None

Subsequent

Measurement

Treasury Bills (HTM) Cost

None

10

(i) General provision on unclassified loans and advances Rate (%)

Standard general loans and advances 1%

Standard Small & Medium enterprise Financing 0.25%

Standard loans to Merchant Banking/BHs/SDs 2%

2%

Standard Consumers loan Scheme other than HF and LP 5%

Standard Short term Agri and Micro credit 2.5%

Special Mention Account general Loans and advances 1%

(ii) Specific provision on classified loans and advances

Substandard (Agri & Micro credit) 5%

Doubtful (Agri & Micro credit) 5%

Substandard 20%

Doubtful 50%

Bad or Loss 100%

(d)

2.6.3 Fixed assets and depreciation

a) Recognition

b) Depreciation

(i) Depreciable assets are stated at cost less accumulated depreciation.

(ii)

(iii)

c) Sale of fixed assets

d) Impairment

e) Others

10%

Standard Housing Finance and loans for professional to set up a

Loans and advances are written off to the extent that there is no realistic prospect of recovery, and against which legal cases are

pending for more than five years as per guidelines of Bangladesh Bank subject to getting approval from Corporate Centre Mumbhai.

These write offs, however, will not undermine/affect the claim amount against the borrowers. Detailed memorandum records for all

such written off accounts are meticulously maintained and followed up.

The cost of an item of furniture, fixture and equipments (Fixed assets) shall be recognized as an asset if, and only if it is probable

that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably.

25%

25%

If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset should be reduced to its

recoverable amount. That reduction is an impairment loss. An impairment loss is recognised as an expenses in the income statement.

Useful life and method of depreciation of property plant & equipment are reviewed periodically. As useful lives of assets do not

differ significantly from that previously estimated, Bank Management does not consider to revalue its assets by the meantime.

Furniture & fixture

Furniture, fixture and equipments have been accounted for at cost less accumulated depreciation. Cost includes expenditure that is

directly attributable to the acquisition of the items.

No depreciation has been charged during the year of disposal.

Depreciation has been charged on reducing balance method at the following rates. Depreciation is charged for full year while

assets are purchased within first six month of the year and 50% depreciation is charged in case assets. are purchased during the

next six months of the year.

Category of assets

Computer

Office equipment

Sale price of fixed assets are determined on the basis of fair value of the assets. Gain or loss on sale of assets are recognized in profit

& loss account as per provision of BAS 16 Property plant & equipments.

Depreciation Rate

11

2.6.4 Other Assets

2.7 Retirement benefits to the employees

a)

b)

2.8 Revenue recognition

(i)

(ii)

(iii)

(iv)

2.9 Cash flow statement

2.10 Statement of liquidity

2.11 Statement of changes in equity

2.12 Reconciliation of books of account

Statement of changes in equity is prepared in accordance with BAS-1" Presentation of Financial Statements" and under the guidelines of

BRPD circular no.14 dated 25 June 2003.

Books of account in regard to inter bank (inside Bangladesh and outside Bangladesh) and inter branch transactions are being regularly

reconciled. The Bank however, formed a task force to take positive steps to eliminate the long outstanding inter branch entries within the

shortest period of time.

The Bank operates a contributory provident fund for its eligible employees. The Commissioner of Income Taxes, Dhaka has

approved the provident fund as a recognized provident fund as per section 2(1) of Part B of the First Schedule of Income Tax

Ordinance 1984. The Fund is administered by a Board of Trustees consisting 3 (three) members and funded by contributions both

from employees and Bank @10% of basic salary. Interest earned from the investment is credited to the members‟ accounts annually.

Provident fund benefits are given to the employees of the Bank in accordance with provident fund rules of the Bank.

Provident fund

Commission and discount on bills purchased and discounted are recognized at the time of realization.

Cash Flow Statement is prepared principally in accordance with BAS-7 "Cash Flow Statement" under direct method as per guidelines of

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

during the financial year. It reported cash flows during the period classified by operating activities, investing activities and financing

activities.

Other assets include all other financial assets and include interest, fees and other unrealised income receivable, Prepaid interest expenses on

fixed deposits, advance for operating and capital expenditure, security deposits and stocks of stationery & stamps etc. Provision for other

assets is made as per BRPD circular no. 14 of 25 June 2001.

The bank has a gratuity scheme, which covers all of its permanent employees. The gratuity would be payable equivalent to 02

month‟s last drawn basic salary for each completed year of service to the employees who have been in the service of the Bank for

minimum period of 12 years in the Bank (maximum ceiling Tk. 30.00 lac). The company made provision for gratuity during the year

as Bangladesh Accounting Standard.

The revenue during the year is recognized as follows which satisfy all conditions of revenue recognition as prescribed by BAS 18

"Revenue".

Interest is calculated on daily product basis on unclassified loan and advances but charged on a quarterly basis.

Interest is charged on classified loans and advances as per Bangladesh Bank's BRPD circular no. 16 of 06 December 1998 and

other related circulars and such interest is not taken into income.

The liquidity statement has been prepared in accordance with the remaining maturity period of the value of the assets and liabilities as on

the reporting date as per the guidelines provided by Bangladesh Bank in BRPD Circular No 14 of 25 June 2003, DOS Circular No 02 of 29

March 2011.

Gratuity

Dividend income is recognized at the time when right to receive is established.

12

2.13 Risk Management

a)

b) Foreign Exchange Risk Management

c) Asset Liability Management

d) Prevention of Money Laundering

As such, it is important that senior management must understand the existence of such risk on the balance sheet and they should

ensure that the structure of the banks business and the level of balance sheet risk it assumes are effectively managed and appropriate

policies and procedures are established to control and limit these risks, and that resources are available for evaluating and controlling

interest rate risk. To address all the risk elements of the balance sheet ALCO meeting was conducted every month in 2016, ATM

desk of the bank analyses the balance sheet risk and prepares the monthly ALCO papers as per the guidelines of Bangladesh Bank.

By strongly monitoring the maturity gap of assets and Liabilities and interest rate movement, bank is able to maintain optimum

liquidity with required regulatory compliances. A policy Guideline on Assets Liability Management has been formulated, approved

by appropriate authority of the bank and revised time to time.

Money laundering has been identified as a major threat to the financial services community, It is important that the management of

Banks and other Financial Institutions view prevention of money laundering as part of their risk management strategies and not

simply as a stand-alone requirement that is being imposed by the legislation. The management of SBI is fully aware that the financial

system shall not be and cannot be used as a channel for criminal activities. Therefore, co-ordination and co-operation between the

concerned parties are essential for its success. The band has designated Chief Anti Money Laundering Compliance Officer

(CAMLCO) at Country Office and compliance officers at branches to review the transactions of the accounts to identify suspicious

transaction Profile (TP) has been incorporated in the Account Opening Form (AOF) along with other KYC related issues.

Assets Liability Management is the most important aspect for the Financial Institution to mange Balance Sheet Risk, especially for

managing of liquidity risk and interest rate risk. Change in Market Liquidity and interest rate expose bank business to the risk of loss.

Failure to identify the risks associated with business and failure to take timely measures in giving a sense of direction may threaten

the survival of institution.

As per Bangladesh Bank‟s guidelines the bank has segregated the Front and Back office for Treasury Operations. Front Office

independently conducts the transactions and the Back Office is responsible for verification of the deals and passing of their entries

in books of accounts. All Nostro accounts are reconciled on monthly basis and all foreign exchange transactions are revalued at

Marked-to-Market rate as determined by Bangladesh Bank.

Foreign Exchange Risk is defined as the potential change in earnings arising from the change in market prices. The market directly

affects each country‟s bond, equities, private property, manufacturing and all assets that are available to foreign investors. Foreign

exchange rates also play a major role in determining whom finances government deficits, which buy equities in companies and

literally affects and influences the economic scenario. Due to high risk market the role of treasury operations is crucial.

Credit Risk Management

The credit risk management includes borrower risk analysis, financial statement analysis, industrial analysis, historical performance of

the customer, security of the proposed credit facility and market reputation of the borrower etc. SBI takes its lending decision based

on the credit risk assessment report by Appraisal Team. In determining Single Borrowing/Large Loan limit, the instructions of

Bangladesh Bank are strictly followed.

As per BRPD Circular no. 11 dated 27 October 2013, a Risk Management Committee of the Board has been formed and the Committee

has already started it's operation.

Credit risk is the possibility that a borrower or counter party will fail to meet its obligations in accordance with agreed terms. The

failure may result from unwillingness of the counter party or decline in his/her financial condition. Credit risk, therefore, arises from

the bank‟s dealing with or lending to corporate, individuals, other banks or financial institutions. A separate Credit Division has been

formed at Head Office since the inception of the bank, which is assigned with the duties of marketing and assessment of credit

products, maintaining effective relationship with the customer and exploring new business opportunities. In line with Bangladesh

Bank guidelines the bank has segregated marketing, approval and monitoring/recovery functions.

The risk of the Bank may be defined as the possibility of losses, financial or otherwise. The risk management of the Bank covers 06 core

risks i.e. Credit Risk, Internal Control & Compliance Risk, Money Laundering Risk, Asset Liability Management Risk (Balance Sheet Risk),

Foreign Exchange Risk and Information Technology Risk. Moreover, Operational Risk, Market Risk, Liquidity Risk, Residual Risk,

Reputation Risk, Strategic Risk, Settlement Risk and Environmental & Climate Change Risk are also brought into consideration. Success

or failure of the Bank depends to a great extent on proper identification and minimization of these risks. The prime objective of the risk

management is that Bank takes well calculative business risks while safeguarding the Bank's capital, its financial resources and profitability

from various risk areas. A separate Risk Management Unit (RMD) has been formed headed by one India Based Officer where all the Chief

Executive Officer & Division Heads of Country Office are the members and the Division Head(AVP- R&C), Internal Control &

Compliance Division is the member secretary. The Committee is responsible to our Honorable Country Head for compliance and

implementation of the decisions. Monthly meeting of Risk Management Department is arranged on regular basis where different risks are

discussed and decisions are gradually implemented. Minutes of Risk Management Department meeting along with risk management papers

are submitted to Bangladesh Bank on monthly/quarterly basis. Yearly Health Report is placed before the Management in which analytical

& exhaustive information are highlighted. Yearly summary report on the audit findings are also placed before the Audit committee of the

Local Management mentioning & highlighting different incidences and the decisions are implemented by the Bank. As a part of risk

management, adequate capital is maintained against Credit Risk, Market Risk and Operational Risk under Basel-III accord. Stress Testing is

done on quarterly basis to assess the impact of different risks associated with banking business on asset, liability & ultimately on capital and

the report is submitted before the Local Management and to Bangladesh Bank regularly.

13

e) Internal Control and Compliance

a)

b)

c)

f) Information technology

As approved by the appropriate authority, the establishment of our own ATM Network with 6 ATM Booths across the country. We

have already participated in the National Payment Switch as Pilot Bank under supervision of Bangladesh Bank and inaugurated our

ATM Debit Card. We have obtained Principal Membership Visa Card. Our ATM card is acceptable in all the VISA ATm Booth and

we have not charged any transaction cost if the card is use in other Bank's ATM Booth.

As per the guidelines; Account Opening Form of our Bank has been redesigned with provision for obtaining particulars of personal

identity of customer and transaction profile. The bank has also undertaken enhanced due diligence in case of opening of accounts of

Politically Exposed Persons(PEP) as per directive of Bangladesh Bank which is in line with recommendation of Financial Action

Task Force of U.N. Anti Money Laundering units have been set up in all the branches under a central unit at Head Office. Basic

training has been imparted to all the officers of the Bank on compliance with rules and regulations of Money Laundering Act so as

to prevent opening of suspicious accounts and identify suspicious transactions.

We have launched our Internet Banking System using our in-house developed software and we are extending this services to the

customers of our all Online Branches.

Audit & Inspection unit;

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

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

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

The units have been functioning independently and separately with direct reporting lines to the Head of IC & CD.

Monitoring Unit and

Compliance Unit.

In addition, Departmental Control Function Checklist has been introduced in the branches and divisions at Head Office under

direct supervision of Monitoring Unit of IC&CD which ensures compliance with regulatory rules and regulations as well as general

banking norms and procedures.

It is a policy of the Bank to put all branches of the Bank under any form of audit four times in a year and IC & CD has been

working in that direction. All the activities of the Internal Control & Compliance Division are devoted to address and mitigate

operational risks of the Bank in more effective way to ensure efficiency and effectiveness of performance, ensure reliability and

completeness of financial and management information and to ensure compliance with legal and regularity requirements.

State Bank of India, Bangladesh Operation follows the guideline stated in BRPD Circular No. 14 dated 23 October 2005 regarding

"Guideline on Information and Communication Technology for Scheduled Banks" and BRPD Circular No. 21 dated 20 May 2010

"Guideline on ICT Security:

Policy guidelines on RISK BASED INTERNAL AUDIT (RBIA) system have been formulated and the branches have already been

brought under RBIA networks. As per RBIA, marks have been allocated for rating of the branches in terms of business risk and

control risk. The branches scoring higher are being subjected to more frequent audits.

Internal Control & Compliance Division of the Bank under direct supervision of Audit Committee of the Board has been

implementing detail guidelines on ICC risk management to assess and mitigate risks and as part of it the IC & CD has been divided

into three (3) independent units; namely:-

Internal Control and Compliance (ICC) is a critical component of Bank management and foundation for the safe and sound

operation of banking organization. A system of strong internal control and compliance can help to ensure that the goals and

objectives of a banking organization will be met, that the bank will achieve long-term profitability targets, and maintain reliable

financial and managerial reporting. Operational loss may arise from error and fraud due to lack of strong internal control and

compliance culture. Effective Internal Control & Compliance system can help to ensure that the bank will comply with laws and

regulations as well policies, plans, internal rules and procedures, and decrease the risk of unexpected losses or damage to the bank‟s

reputation.

14

2.14 Disclosure on fraud and forgeries committed by bank employees:

2.15 Off-balance sheet items

2.16 Offsetting

2.17 Interest paid and other expenses

2.18 Reporting period

2.19 Number of employees

2.20 Provision for liability

2.21 Events after reporting period

2.22 BASEL III implementation

We have successfully implemented Bangladesh Automated Clearing House (BACH) and Bangladesh Electronic Fund Transfer

System (BEFTN), Credit Information Bureau (CIB) Reporting as per guidelines of Bangladesh Bank.

We have established our website www.sbibd.com where form the visitors can get information about our products, charge schedule,

career opportunities, procurement notices and present status of our bank. The website is updated periodically and also as and when

required. Communication through email among our Branches, Country Office and different Divisions of Country Office under our

own Mail Server at IT Division, Country Office has become quick and easier.

To ensure proper training to our officials, Information Technology Division arranged need based hands on training program at our

Computer Lab daily in addition to training/workshop arranged at Country Office Conference Roam through Video Conference

throughout the year. During the year 2016, we conducted 09 training programs at our Computer Lab on 7 (seven) different

Topics/Modules covering 46 participants and 2 (two) Workshop on General Banking Practices and related IT Operations through

Video Conference covering 24 participants from Branches/Country Offices across the country.

Under general banking transactions, liabilities against acceptance, endorsement and other obligations and bills against which acceptances

have been given and claims exist there against, have been shown as off-balance sheet items.

No fraud occurred during the period

These financial statements cover one calendar year from 01 January 2016 to 31 December 2016.

Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right

to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability substantially.

In terms of the provisions of BAS 1 “Presentation of Financial Statements” interest and other expenses are recognized on accrual basis.

The number of employees employed in the Bank as on 31 December 2016 was 111, of which 92 were male and 19 were female. The

number of employees per branch was 18.20 excluding 20 employees in the Country office of the Bank.

A provision is recognized in the balance sheet when the Bank has a legal or constructive obligation as a result of a past event and it is

probable that an outflow of economic benefit will be required to settle the obligations, in accordance with the BAS 37 “Provisions,

Contingent Liabilities and Contingent Assets”.

In terms of provision of BAS 10 "Events after Reporting period "no material events have occurred after balance sheet date which could

affect the values reported in the financial statements, except declaration of dividend, if any.

The BASEL Committee on Banking Supervision has published a new framework for calculating minimum capital requirement, known as

„Basel III‟. The new guideline is structured around three pillars: (i) minimum capital requirement (on credit risk, market risk and operation

risk), (ii) supervisory review process and (iii) market discipline. Implementation of Basel III framework in Bangladesh will integrate the risk

management process of the Bank and its capital adequacy requirement. Bangladesh Bank has formed a Committee and Coordination

Committee for implementation of BASEL III in Bangladesh. As per the Committee decision BASEL III has been fully implemented in

Bangladesh. The Committee has indicated that following methodology of BASEL III would be followed in Bangladesh:

15

I.

II.

III.

2.23 Training

2.24 Audit committee

-

-

-

-

-

-

2.25

Sl.

No.

Long Term Short Term

1 AA AR-2

2 AA- AR-2

3 AA- ST-2

4 AA+ ST-2

5 AA ST-2

2.26

2.27

2.28

2.29 Statement of compliance

Member MBA (Finance), MBM, DAIBB

Protim Kumer Mallick FAVP(IT) Member CSE, MBA(MIS), LLB, JAIBB,LLM

An audit committee was constituted by the Senior Management of State Bank of India, Bangladesh Operation. Subsequently, one of the

member has retried from the bank on 31st December 2016 and reconstituted the Audit Committee is under process the earlier comittee is

as under:

Standardized method for credit and market risk.

Basic indicator approach for operational risk.

In implementation of the human resources development strategy, the Bank sent its employees to different training organizations to build

up professionals with technical, human and conceptual skills. This is focused to ensure a formal platform where employees can exchange

their ideas, update their knowledge base, open up their eyes to the complexities of banking world.

Year

Satwinder Singh HRMD Chairman M.A, CAIIB, Diploma in Business

D.P.Das VP Member B.Com

Name Status in

the Bank

Figures in these notes and in the annexed financial statements have been rounded off to the nearest Taka.

Jan to Dec 2011

Facts

During the year, the Audit Committee of the Board conducted 4 (Four) meetings in which among others, the following issues were

discussed:

Discuss the Comprehensive Inspection report of Bangladesh Bank of Bangladesh Operations.

Discuss the audit report of different Country Office departments and Branches conducted by the Bank's internal audit team from

time to time.

Discuss the fraud/forgeries & operational loss report.

Reviewing the Anti money laundering policy of the Bank.

Credit Rating of the Bank

Jan to Dec 2013

These notes form an integral part of the annexed financial statements and accordingly are to be read in conjunction therewith.

Jan to Dec 2014 ALPHA

ALPHA

Review the position of reconciliation with other bank and Nostro Account.

Review the status of the Special Mentioned Account (SMA) and Bad/Loss loan.

Jan to Dec 2015

Rating Agencies

Credit rating of the Bank of last four years are shown below-

Status in the

committee

Educational

Qualification

Md. Maksudur Rahman FAVP(A&T) Member M.COM, MBA (Finance), MBM

Milon Kumar Mitra AM (IA) Member

The Committee has suggested for continuous training of the officers and employees of the banks for capacity building and

formation of an implementation team. Implementation team would remain responsible for overall supervision of BASEL III

implementation in their banks. It has also suggested that the board of directors should also remain updated on the issue.

Accordingly, the Bank has formed BASEL III implementation team and is providing training to senior management, credit officers

and managers of the Bank. BASEL III implementation team has been regularly monitoring and to give various

suggestion/instruction regarding implementation of the above three pillars.

Mohammad Masudul Amin SAVP(R&C)

During the year 2016, the training institute of the Bank has arranged a total of 38 training courses, seminars and workshops mostly

conducted by the internal resource persons with 182 participants. The objectives of designing all training programmes are to bridge the gap

between present level of competence and the required level of competence.

Jan to Dec 2012

ALPHA

CRISL

CRISL

The financial statements of the Bank are prepared in accordance with Bangladesh Financial Reporting Standards (BFRS) and the

requirements of the Bank Companies Act 1991, the rules and regulations issued by Bangladesh Bank, the Companies Act 1994, [the

Securities and Exchange Rules 1987 ]. In case any requirement of the Bank Companies Act 1991, and provisions and circulars issued by

Bangladesh Bank differ with those of BFRS, the requirements of the Bank Companies Act 1991, and provisions and circulars issued by

Bangladesh Bank shall prevail. Material departures from the requirements of BFRS are as follows:

Figures relating to the previous year included in this report have been rearranged, wherever considered necessary, to make them

comparable with those of the current year for the purpose of comparison with current year's presentation, without any impact on.

16

i) Investment in shares and securities

ii) Revaluation gains/losses on Government securities

iii) Provision on loans and advances/investments

iv) Recognition of interest in suspense

v) Other comprehensive income

vi) Financial instruments – presentation and disclosure

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

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

be performed on an individual or collective (portfolio) basis.

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

recognised through effective interest rate method over the term of the loan. Once a loan is impaired, interest income is recognised

in profit and loss account on the same basis based on revised carrying amount.

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

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

is presented as liability in the balance sheet.

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

revalued at the year end at market price and as per book value of last audited balance sheet respectively. Provision should be made

for any loss arising from diminution in value of investment; otherwise investments are recognised at cost.

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

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

measured at amortised cost method and interest income is recognised through the profit and loss account.

Bangladesh Bank: HFT securities are revalued on the basis of mark to market and at year end any gains on revaluation of securities

which have not matured as at the balance sheet date are recognised in other reserves as a part of equity and any losses on revaluation

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

securities including amortisation of discount are recognised in the profit and loss account. HTM securities which have not matured

as at the balance sheet date are amortised at the year end and gains or losses on amortisation are recognised in other reserve as a part

of equity.

Bangladesh Bank: As per BRPD circular No.14 (23 September 2012), BRPD circular No. 19 (27 December 2012) and BRPD

circular No. 05 (29 May 2013) a general provision at 0.25% to 5% under different categories of unclassified loans (good/standard

loans) has to be maintained regardless of objective evidence of impairment. Also provision for sub-standard loans, doubtful loans

and bad losses has to be provided at 20%, 50% and 100% respectively for loans and advances depending on the duration of

overdue. Again as per BRPD circular no. 10 dated 18 September 2007 and BRPD circular no. 14 dated 23 September 2012, a

general provision at 1% is required to be provided for all off-balance sheet exposures. Such provision policies are not specifically in

line with those prescribed by BAS 39.

Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which will strictly be followed by all banks. The

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

Other Comprehensive Income allowed to be included in a single Other Comprehensive Income (OCI) Statement. As such the Bank

does not prepare the other comprehensive income statement. However, elements of OCI, if any, are shown in the statements of

changes in equity.

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

and loss account” or under “available for sale” where any change in the fair value (as measured in accordance with BFRS 13) at the

year-end is taken to profit and loss account or revaluation reserve respectively.

BFRS: As per BAS 1 Other Comprehensive Income (OCI) is a component of financial statements or the elements of OCI are to

be included in a single Other Comprehensive Income statement.

In several cases Bangladesh Bank guidelines categorise, recognise, measure and present financial instruments differently from those

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

statements.

17

vii) Cash and cash equivalent

viii) Non-banking asset

ix) Cash flow statement

x) Balance with Bangladesh Bank: (Cash Reserve Requirement)

xi) Presentation of intangible asset

xii) Off-balance sheet items

xiii) Loans and advances/Investments net of provision

2.30

Sl. Reference Status

1 BAS 1 Complied

2 BAS 2 Not Applicable

3 BAS 7 Complied

4 BAS 8 Complied

5 BAS 10 Complied


7 BAS 12 Complied

8 BAS 16 Complied


10 BAS 18 Complied

11 BAS 19 Complied


13 BAS 21 Partially Complied

14 BAS 23 Complied

15 BAS 24 Complied

16 BAS 26 Applicable




20 BAS 32 Complied


Bangladesh Bank: As per BRPD 14, off balance sheet items (e.g. Letter of credit, Letter of guarantee etc.) must be disclosed

separately on the face of the balance sheet.

BFRS: Loans and advances/Investments should be presented net of provision.

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

Bangladesh Bank: As per BRPD 14, there must exist a face item named Non-banking asset.

BFRS: Cash and cash equivalent items should be reported as cash item as per BAS 7.

Bangladesh Bank: There is no regulation for intangible assets in BRPD 14.

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

sheet items on the face of the balance sheet.

Bangladesh Bank: As per BRPD 14, provision on loans and advances/investments are presented separately as liability and can not

be netted off against loans and advances.

BFRS: The Cash flow statement can be prepared using either the direct method or the indirect method. The presentation is selected

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

consistently.

Bangladesh Bank: As per BRPD 14, cash flow is the mixture of direct and indirect methods.

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

BAS 7.

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

BFRS: An intangible asset must be identified and recognised, and the disclosure must be given as per BAS 38.

Bangladesh Bank: Some cash and cash equivalent items such as „money at call and on short notice‟, treasury bills, Bangladesh Bank

bills and prize bond are not shown as cash and cash equivalents. Money at call and on short notice presented on the face of the

balance sheet, and treasury bills, prize bonds are shown in investments.

Inventories

Statement of Cash Flows

Accounting Policies, Changes in Accounting Estimates and Errors

Events after the Reporting Period

Construction Contracts

Income Taxes

Property, Plant and Equipment

Leases

Revenue

Employee Benefits

Financial Instruments: Presentation

Earnings per Share

Compliance Status with BFRS and BAS

The Effects of Changes in Foreign Exchange Rates

Borrowing Costs

Related Party Disclosures

Accounting and Reporting by Retirement Benefit Plans

Separate Financial Statements

Investments in Associates and Joint Ventures

Financial Reporting in Hyperinflationary Economies

Bangladesh Accounting Standards (BASs)

Accounting for Government Grants and Disclosure of Government

Assistance

Presentation of Financial Statements

18


23 BAS 36 Complied

24 BAS 37 Complied


26 BAS 39 Complied




1 BFRS 1 Not Applicable






7 BFRS 7 Partially Complied






2.31

2.31.1 Claim not acknowledged as debt

2.31.2 Number of employees

2.31.3 Post balance sheet events

There was no significant post balance sheet events occurred.

2.31.4 Coverage of external audit

General disclosure

There was no claim against the bank not acknowledged as debt as on 31 December 2016.

The number of Employees including contractual engaged for the whole year or part there of who received a total yearly remuneration of

Tk.36,000 or above were 111 ( 2015:112).

The external auditor of the Bank, M/s HOWLADAR YUNUS & CO. Chartered Accountants worked about in excess of 1,140 man hour

at Country Office, 5 Branches and 2 Off-shore Banking Units. During their audit, above 80% of the Bank's risk weighted assets were

reviewed as on the Balance Sheet date.

First-time Adoption of International Financial Reporting Standards

Bangladesh Financial Reporting Standard (BFRS)

Agriculture

Interim Financial Reporting

Impairment of Assets

Provisions, Contingent Liabilities and Contingent Assets

Intangible Assets

Financial Instruments: Recognition and Measurement

Investment Property

Joint Arrangements

Disclosure of Interests in Other Entities

Fair Value Measurement

Share-based Payment

Business Combinations

Insurance Contracts

Non-current Assets Held for Sale and Discontinued Operations

Exploration for and Evaluation of Mineral Resources

Financial Instruments: Disclosures

Operating Segments

Consolidated Financial Statements

19

2016 2015

3. Cash

A. Cash in hand

Local currency 26,068,567 27,881,741

Foreign currency (including OBU) 2,760,220 3,948,287

ATM cash balance 2,073,300 2,048,200

30,902,087 33,878,228

B. Balance with Bangladesh bank and its agent bank(s)

Local currency (Note: 3.1 ) 1,687,111,662 478,163,869

Foreign currency 643,487,912 25,258,604

2,330,599,574 503,422,473

Sonali bank as agent of Bangladesh bank (local currency) - -

2,330,599,574 503,422,473

2,361,501,660 537,300,701

3.1 Local currency

Lien with Bangladesh Bank - -

Free Balance with Bangladesh Bank 1,687,111,662 478,163,869

1,687,111,662 478,163,869

3.2 Statutory deposits

3.2.1 Cash Reserve Requirement (CRR)

i. Daily Bank's CRR maintenance

Required reserve (6% of total time & demand liabilities) 437,060,210 420,714,516

Actual reserve maintained 1,681,461,000 465,391,000

Surplus/ (deficit) 1,244,400,790 44,676,484

Maintained(%) 23.98% 6.64%

ii. Bi- Weekly bank's CRR maintenance

Required reserve (6.50% of total time & demand liabilities) 473,481,894 911,664,000

Actual reserve maintained 9,178,898,830 8,248,360,950

Surplus/ (deficit) 8,705,416,936 7,336,696,950

Maintained(%) 23.98% 6.64%

3.2.2 Statutory Liquidity Reserve (SLR)



Surplus/ (Deficit) 8,231,935,042 7,336,696,950

Maintained(%) 130.89% 117.62%

4

Inside Bangladesh (Note: 4.1 ) 11,811,434 28,755,594

Outside Bangladesh (Details are given in Annexure- A) (Note: 4.2 ) 337,920,697 190,533,458

349,732,131 219,289,052


873,482,178 365,256,177

4.1

On demand deposit accounts ( Current account )

Uttara Bank 2,100,651 7,843,058

Sonali Bank 69,972 69,972

Pubali Bank 1,278,359 11,207

3,448,982 7,924,237

On short term deposit (STD) accounts

Uttara Bank 6,049,000 9,559,303

Standard Chartered Bank-ATM settlement A/C 2,313,452 11,272,054

8,362,452 20,831,357

11,811,434 28,755,594

Amount in Taka

The Cash Reserve Requirement (CRR) and the Statutory Liquidity Requirement (SLR) are maintained as per BRPD Circular No. 11 & 12 dated 25

August 2005, MPD circular No. 01 dated 23 June 2014 & MPD circular no. 02 dated 10 December 2013. Cash Reserve Requirement (CRR) and the

Statutory Liquidity Requirement (SLR) and deposits there against with Bangladesh Bank at 31 December 2016 are as follows:

Balance with other banks and financial institutions

Balance with other banks and financial institutions ( Inside Bangladesh )

20

2016 2015

Amount in Taka

4.2

State Bank of India, West Germany(FF) 18,373,551 67,221,821

State Bank of India, London 1,055,926 733,534

State Bank of India, New York 136,367,986 24,860,865

State Bank of India, Japan 276,431 175,400

156,073,894 92,991,620

Standard Chartered Bank, Karachi Branch - -

Deutsche Bank, Mumbai - -

JP Morgan Chase Bank 139,488,934 67,701,901

ACU Dollar Nostro a/c 37,343,212 12,471,479

Wachovia Bank - -

Bank of America 2,608,551 8,542,418

Deutsche Bank Trust Company, New York 2,406,107 8,826,040

181,846,803 97,541,838

337,920,697 190,533,458

4.3 Foreign currency wise break-up

Amount in FC

US Dollar 4,039,540 78.7750 318,214,789 122,402,704

Great Britain Pound 10,941 96.5131 1,055,926 733,534

EURO 223,205 82.3170 18,373,551 67,221,821

Japanese Yen 407,835 0.6778 276,431 175,400

337,920,697 190,533,458

5

Banking company

Jamuna Bank Limited 150,000,000 -

Dhaka Bank Limited - 350,000,000

Commercial Bank of Ceylon 60,000,000 -

Bank Asia Limited - 150,000,000

One Bank Limited 140,000,000 -

Brac Bank Limited 280,000,000 370,000,000

NCC Bank Limited 380,000,000 370,000,000

The City Bank Limited 370,000,000 370,000,000

Trust Bank Limited - 200,000,000

1,380,000,000 1,810,000,000

Off-shore Banking Unit - -

1,380,000,000 1,810,000,000

5.1 Maturity grouping of money at call and short notice

Up to one month 1,380,000,000 1,810,000,000

Over one month but below three months - -

Over three months but below one year - -

Over one year but below five years - -

Over five years - -

1,380,000,000 1,810,000,000

6

(Note: 6.1) 7,946,480,102 8,292,387,541

(Note: 6.2) 3,138,890 3,138,890

7,949,618,992 8,295,526,431


7,949,618,992 8,295,526,431

Investment in securities are classified as follows:

Held for trading - -

Held to maturity 7,946,480,102 8,292,387,541

Other Investments 3,138,890 3,138,890

7,949,618,992 8,295,526,431

6.1

Treasury bill

30 day Treasury bills 1,306,810,150 2,024,452,570

91 day Treasury bills 349,938,902 1,376,871,362

182 day Treasury bills 737,309,920 199,866,747

364 day treasury bills 2,094,896,033 1,694,811,638

4,488,955,005 5,296,002,317

Government securities

On demand deposit accounts ( Interest bearing)

Conversion rate

Government Securities

Money at call and short notice

Treasury bills and treasury bonds amounting Tk. 691.50 crore has been pledged with Bangladesh Bank for Capital Purpose. Details of investments are

given in Annexure- F)

Currency name

Balance with other banks and financial institutions (Outside Bangladesh)

On demand deposit accounts (Non interest bearing)

Other Investments

Investments

21

2016 2015

Amount in Taka

Treasury bond

2 year Treasury Bonds 767,306,334 3,500,149


10 year Treasury Bonds 1,148,041,541 1,502,675,099



3,457,467,297 2,995,470,924

Prize bonds 57,800 914,300

7,946,480,102 8,292,387,541

6.2 Other investments: Shares of Central Depository Bangladesh Limited (CDBL)

Quoted - -

Unquoted 3,138,890 3,138,890

3,138,890 3,138,890

No of Shares

Initial investment @ Tk.10 200,000 2,000,000 2,000,000

Purchase of Right share @ Tk.10 113,889 1,138,890 1,138,890

Bonus share @ Tk.10 828,472 - -

1,142,361 3,138,890 3,138,890

6.3

Payable on demand 57,800 914,300

Below three months 1,656,749,052 3,401,323,932

2,832,205,953 1,894,678,385

Over one year but below five years 979,671,970 520,278,471

Over five years 2,477,795,326 2,475,192,453

7,946,480,102 8,292,387,541

7

a. Loans, Cash Credits, Overdrafts etc.:

Overdrafts 635,887,914 664,427,598

Demand loans 708,345 661,560

- 1,000,000,000

Cash credit 1,550,943,809 1,569,206,923

House building loan 77,644,360 107,840,199

Transport loan 124,004,746 856,524,409

Term loans 585,873,492 73,769,963

Loan against trust receipts 46,645,604 -

Agricultural loan 101,836,065 100,000,000

Staff loans (Note - 7.6) 52,390,195 31,648,000

3,175,934,530 4,404,078,651

Off-shore Banking Unit 1,181,625,000 362,342,267

4,357,559,530 4,766,420,918

b. Bills purchased & discounted:

Domestic Banking Unit (Note - 7.15) 1,723,815 5,373,762

Off-shore Banking Unit 8,177,140,387 5,431,101,113

8,178,864,202 5,436,474,875

Total : (a+b) 12,536,423,732 10,202,895,793

7.1 Net loans and advances

Gross loans and advances 12,536,423,732 10,202,895,793

Less:

Interest suspense 34,583,544 41,841,539

Provision for loans & advances 662,802,031 672,112,981

697,385,575 713,954,520

11,839,038,157 9,488,941,273

7.2

Repayable on demand 239,773,281 332,719,492

1,897,030,782 1,355,069,429

8,770,811,235 6,254,903,760

728,847,578 1,011,379,564

899,960,857 1,248,823,549

12,536,423,732 10,202,895,793

7.3

828,512,506 1,038,134,570

Cash Credits 1,653,488,218 2,701,516,483

Overdrafts 695,657,621 669,801,360

3,177,658,345 4,409,452,413

- -


12,536,423,732 10,202,895,793

Particulars

More than 1 year to 5 years

Telecommunication

Loans and advances under the following broad categories

Inside Bangladesh

Outside Bangladesh

More than 5 years

Maturity wise grouping of loans and advances

More than 1 months to 3 months

Over three months but below one year

Maturity wise grouping of investments (Other than CDBL Shares)

Loans and advances

More than 3 months to 1 Year

Term Loans

22

2016 2015

Amount in Taka

7.4

Dhaka Division 2,261,856,026 3,306,460,018

Chittagong Division 792,271,307 957,667,250

Sylhet Division 99,140,201 113,568,008

Khulna Division 24,390,812 24,290,659

Rajshahi Division - 7,466,478

3,177,658,346 4,409,452,413

Off-shore banking unit 9,358,765,387 5,793,443,380

12,536,423,732 10,202,895,793

7.5

Staff

Managing Director & CEO - -

Senior Executives 8,052,687 9,494,400

Others 44,337,508 22,153,600

52,390,195 31,648,000

i) Agricultural and Jute 101,836,065 127,268,584

ii) Readymade garments 116,112,346 160,909,489

iii) Textile 12,480,994 13,015,022

iv) Food & allied 80,122,689 -

v) Chemical - -

vi) Cement 50,633,612 82,337,049

vii) Printing Publishing & allied Industries - 16,128,781

viii) Metal Products & Steel - -

ix) Petroleum & Coal Products - -

x) Leather & Leather Products - 69,916,493

xi) Other 678,276,191 1,026,669,948

1,039,461,897 1,496,245,365

Infrastructural

i) Power 3,621,009 -

ii) Telecom - -

iii) Construction 223,802,231 120,870,813

iv) Transport 751,602,633 856,524,409

v) Feed - -

v) Others 272,019,154 580,752,668

1,251,045,027 1,558,147,889

Inside Bangladesh

* Our 5 (Five) branches are located in urban areas . However, as we have obtained approval to open new branches in Bangladesh, we shall increase our

loans and advances portfolio in rural areas of the country as well.

Significant concentration wise grouping

Geographical location wise portfolio grouping

Industries

23

2016 2015

Amount in Taka

i) Commercial lending 10,725,230 -

ii) Export financing - -

iii) House building loan 77,644,360 107,840,199

iv) Small and medium enterprise 622,833,899 745,089,136

vi) Non-banking financial institutions 77,314,536 -

vi) Others 46,243,202 470,481,823

834,761,227 1,323,411,158


12,536,423,732 10,202,895,793

7.6 Staff loan

Overdraft Loan (Interest Bearing) 11,707,413 12,235,318

Overdraft Loan (Interest Free) 708,345

Car and motorcycle Loan 61,948 1,858,500

House building Loan 39,912,489 17,554,182

52,390,195 31,648,000

7.7

7.8

Standard including staff loan 2,594,971,562 3,832,356,004

Special Mention Account (SMA) 13,803,410 5,630,000

2,608,774,972 3,837,986,004

Offshore Banking Unit 9,358,765,387 5,793,443,380

Classified

Sub standard 45,622,692 5,952,388

Doubtful 79,827,100 -

Bad / Loss 443,433,581 565,514,021

568,883,373 571,466,409

12,536,423,732 10,202,895,793

7.9

Overdraft 695,657,621 669,801,360

Demand Loan 708,345 661,560

Term Loan 828,512,506 1,038,134,570

Cash Credit 1,652,779,873 2,700,854,923


12,536,423,732 10,202,895,793

7.10 Sector-wise allocation of loans and advances

Private

Agriculture, fishing, forestry and dairy firm 101,836,065 127,268,584

Industry (jute, textile, garments, chemicals, cements etc.) 937,625,832 1,368,976,781

Working capital financing 1,020,632,084 1,416,272,021

Export credit - -

Commercial credit 10,725,229 -

Small and cottage industries 622,833,899 745,089,136

Miscellaneous 484,005,236 751,845,891

3,177,658,345 4,409,452,413


12,536,423,732 10,202,895,793

7.11 Securities against loans/advances including bills purchase and discount

Collateral of moveable/immoveable assets 1,972,989,000 2,737,802,547

Non-banking financial institutions guarantee 129,273,498 179,385,343

Local banks/foreign banks guarantee 9,621,239,966 6,157,664,149

Export documents 1,723,815 5,373,762

Cash and quisi cash 130,653,234 181,299,925

Personal guarantee 307,127,280 426,182,736

Other securities 373,416,939 515,187,332

12,536,423,732 10,202,895,793

Total capital of the Bank was Taka 7465.79 million including Offshore Banking Unit as at 31 December 2016 (Taka 8022.29 million at 31 December

2015 respectively ). Number of clients with amount outstanding and classification status to whom loans and advances sanctioned exceeds 10% of the

total capital of the Bank are shown in Annexure - B.

Consumers

Grouping as per classification rules

Detail of large loan

Unclassified

Loan type wise classified loan

24

2016 2015

Amount in Taka

7.12

Provision required for unclassified loans and advances

Outstanding Base for provision Required provision

December 2016

Required provision

December 2015

1,801,445,600 1,801,445,600 18,014,456 30,335,311

551,326,157 551,326,157 1,378,315 1,396,797

77,644,360 77,644,360 1,552,887 1,996,100

10,650,158 10,650,158 532,508 449,314

13,803,410 13,803,410 138,034 56,300

101,836,065 101,836,065 2,545,902 2,500,000

52,069,221 52,069,221 - -

9,358,765,387 9,358,765,387 93,587,654 57,934,434

11,967,540,359 11,967,540,358 117,749,756 94,668,256

Provision required for off-balance sheet items (General Provision)

Outstanding Required provision

December 2016

Required provision

December 2015

Acceptances and endorsements - - -

19,190,088,926 191,900,889 195,959,434

Irrevocable letter of credits 1,735,179,160 17,351,792 10,765,860

20,925,268,087 209,252,681 206,725,295

Total required provision for unclassified assets (including off-balance sheet items) 327,002,437 301,393,551

Provision maintained for unclassified assets (including off-balance sheet items) 333,993,866 301,530,941

Excess/(Short) provision at 31 December 2016 6,991,428 137,391

Provision required for classified loans & advances (Specific provision)

Outstanding Base for provision Required provision

December 2016

Required provision

December 2015

Sub-standard 45,622,692 21,238,045 4,247,609 178,572

Doubtful 79,827,100 43,245,357 21,622,678 -

Bad/Loss 443,433,581 283,148,800 283,148,800 379,830,875

568,883,373 347,632,201 309,019,087 380,009,446

Total provision maintained for classified assets:

Sub Standard 4,247,609 178,572

Doubtful 21,622,678 -

Bad/loss 302,937,878 428,337,901

328,808,165 428,516,473

Excess/(Short) of provision 19,789,078 48,507,027

7.13 Particulars of loans and advances

i) 11,742,009,146 9,100,532,690

ii)531,179,180 737,086,579

iii) 263,235,406 365,276,525

iv)

12,536,423,732 10,202,895,793

v) - -

vi)

- -

vii)

- -

Letter of guarantees

Debts adversely classified; for which no provision is created

1%

1%

1%

1%

Rate (%)

20%

50%

Debts considered good in respect of which Bank is fully secured

Debts due by companies or firms in which the directors or officers of the bank are interested

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

Maximum total amount of advances, including temporary advances made at any time during

the year to directors or managers or officers of the banking companies or any of them either

separately or jointly with any other person

5%

Particulars of required provision for loans and advances

Housing & loan for

professional

Status

All unclassified loans

(Other than Small &

Medium enterprise

Financing, Consumer

Financing,BHs/MBs/SDs

, Housing & loans for

professional)

Small & Medium

enterprise financing

2%

Rate (%)

1%

0.25%

1%

0%

Consumer finance

Off Shore Banking Unit 1%

Special Mentioned

Account (SMA)

Shortterm Agriculture

Loan2.5%

N/A

N/A

Rate (%)

100%

Total

Status

Debts considered good secured by the personal undertakings of one or more parties in

addition to the personal guarantee of the debtors

Debts considered good for which Bank holds no other security than the debtor's personal

guarantee

Debts due by directors or officers of the banking company or any of these either separately

or jointly with any other persons;

Staff Loan

Name of Exposure

Total

Total

25

2016 2015

Amount in Taka

viii)

- -

ix) Due from banking companies - -

x) - -

a)- -

b)302,937,878 428,337,901

c) 34,583,544 41,841,539

xi)

- -

- Current year - -

- Cumulative to date - -

7.14

Dhaka Region 349,445,900 247,399,886

Chittagong Region 769,080,325 685,390,107

Sylhet Region 44,665,425 31,413,654

1,163,191,650 964,203,647

7.15 Bill purchase & discount under the following broad categories (DBU)

1,723,815 5,373,762

- -

1,723,815 5,373,762


8,178,864,201 5,436,474,875

7.16

Payable within 1 month - -

Over 1 month but less than 3 months - -

Over 3 months but less than 6 months 8,177,140,387 5,431,101,113

6 months and more 1,723,815 5,373,762

8,178,864,201 5,436,474,875

7.17

Balance at the beginning of the year 445,153,612 156,548,954

Add: Write off during the year 426,294,149 291,094,160

871,447,761 447,643,114

Less: Recovery of Write off loans - 2,489,502

871,447,761 445,153,612

7.18 Cash Incentive for Good Borrower

The amount of written off loans for which law suit filed.

Suit filled by the bank (branch wise)

Inside Bangladesh

Maximum total amount of advances, including temporary advances granted during the year

to the companies or firms in which the directors of the banking company have interest as

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

Interest creditable to the Interest Suspense a/c.

Increase/decrease of provision (specific) amount of debts written off amount realized

against loan previously written off.

Amount of Classified loans on which interest has not been charged should be mentioned as

follows:

Write off of loans & advances

Cumulative amount of the written off loan and the amount written off during the current

year should be shown separately. The amount of written off loan for which lawsuit has been

field should also be mentioned.

Amount of provision kept against loan classified as "bad/loss" on the date of preparing the

balance sheet

As per Bangladesh bank circular the bank has completed the formalities. During the year December 2016 Bank has not found any borrower who has

comply the Bangladesh Bank circulars to get "Cash Incentive for good borrower" due to non-compliance the sanction terms and condition.

Outside Bangladesh

Maturity wise grouping of bill purchase & discount

26

2016 2015

Amount in Taka

8

A. Cost

Opening balance 201,291,720 174,558,316

Add: Addition during the year 20,127,679 32,415,431

221,419,399 206,973,747

Less: Disposal/adjustment during the year 1,102,984 5,682,027

220,316,415 201,291,720

B. Accumulated Depreciation

Opening balance 117,059,733 102,631,576

Add: Charged during the year 17,765,721 18,446,427

134,825,453 121,078,003

Less: Disposal/adjustment during the year 596,942 4,018,270

134,228,511 117,059,733

Written down value (A-B) 86,087,904 84,231,987


86,087,904 84,231,987

(Details are given in Annexure- C)

9

Domestic Banking Unit (Note - 9.1) 393,258,061 796,102,333


575,411,895 956,223,934

9.1 Domestic Banking Unit

Interest receivable on Treasury Bond 108,917,749 119,459,995

Dividend receivable From CDBL 2,855,903 2,855,903

Interest receivable on Inter Bank Call Money 1,502,398 1,235,995

Sub-total 113,276,051 123,551,892

Stationery, stamps, printing materials etc. 1,406,319 1,961,110

Advance rent and advertisement 21,304,105 39,579,286

Memento coin 52,500 154,000

Deferred expenses - -

Excise duty Recoverable 395,340 1,978,209

Inter Branch lending(FC) - 368,877,836

ISO reconciliation 382,881 -

Advance payment of Income Tax 256,440,866 260,000,000

Others - -

Sub-total 279,982,010 672,550,441

Total 393,258,061 796,102,333

10 Non banking assets

11 Borrowing from other banks, financial institutions and agents

Domestic banking unit - -


9,017,051,882 5,728,327,960

12

Local Currency


Bills payable 32,474,493 24,428,492

Saving deposits 495,485,884 464,115,751

Fixed deposits 3,372,359,542 3,815,822,651

Short term deposit 949,998,088 639,525,461

Other deposits 8,339,718 12,750,851

6,894,081,351 6,463,233,852

Non income generating other assets :

No-non-banking assets is under the possession of the bank which acquired as claims. State Bank of India, Bangladesh Operations was not acquired any

such assets as on 31 December 2016.

Deposit and other accounts

Domestic Banking Unit place surplus Dollar fund amounting to Tk. 630,200,000.00 in the year 2016 and 368,877,836.00 Tk. in the year 2015 without

borrowed the fund from abroad to fulfill the requirement of OBU and to reduce borrowing cost which may incurred if the would be borrowed from

abroad. DBU has not charged any interest as per the management deceision. Offshore Banking Unit(OBU) shows the figure as borrowing from Dhaka

Branch in note 9.1.

Bank's actual interest receivable in investments is Tk. 150,432,099 in 2016 and Tk. 198,725,821 in 2015 but as per practice of SBI revaluation amount is

included in interest receivable. At the end of year the bank passed reversal entry between interest income receivables and increase Investment value. As

such,we have netted off amounting taka 40,011,951.31 from interest receivables and increase the investment amount to comply B.Bank instruction.

Other assets

Income generating other assets :

Fixed assets including premises, furniture and fixtures

27

2016 2015

Amount in Taka

Foreign currency

Current account 389,949,036 172,036,523

Other deposits 648,120,503 362,934,831

1,038,069,540 534,971,353

7,932,150,891 6,998,205,206


7,956,061,008 7,040,175,836

12.1 Deposit details concentrating liquidity nature

i) Demand deposit

Current deposit 2,035,423,626 1,506,590,646

Saving deposit (9%) 44,593,730 46,411,575

Foreign currency deposit 389,949,036 172,036,523


Other demand deposit-local currency 8,339,718 12,750,851

Other demand deposit-foreign currency 648,120,503 362,934,831

3,443,900,533 2,317,010,556

ii) Time deposit

Saving deposit (91%) 450,892,154 417,704,176

Fixed deposit 3,372,359,542 3,815,822,651

Foreign currency deposit - -


4,488,250,357 4,681,194,650


7,956,061,008 7,040,175,836

12.2 Maturity wise grouping of deposits

Payable on demand - -

Payable within 1 month 2,344,743,803 2,068,669,459

Over 1 month but within 3 months 1,448,410,753 1,277,872,271

Over 3 month but within 1 year 776,478,251 685,054,308

Over 1 year but within 5 years 1,077,979,306 951,056,087

Over 5 years 2,284,538,778 2,015,553,081


7,956,061,008 7,040,175,836

13

Domestic Banking Unit

Fixed deposit interest account 49,347,323 66,057,758

Provision on loans and advances {Note-13.1-(a+b)} 569,214,378 672,112,981

Interest suspense's account (Note-13.3) 34,583,544 41,841,539

Withholding tax payable (Payable on interest) (Note-13.4) 15,393 -

Provision for current taxation (Note-13.5) 501,396,271 517,482,674

Provision for deferred tax (Note-13.6) (5,293,975) (7,762,116)

Inter branch adjustment account 44,163 1,204,151

Excise Duty Payable Account 821,950 -

Short Term Deposit Interest Account - 2,766,374

ACU EURO Account - -

Provision for gratuity - -

Provision for audit fees 345,000 388,125

Interest Payable on Call Money - -

Other Provision 17,323,376 27,407,049

1,167,797,423 1,321,498,535


Total 1,278,317,130 1,382,602,232

44,163

-

-

-

-

13.1

Total Domestic Banking Unit (DBU) deposit and other accounts

This represents outstanding inter-branch and head office transactions (net) which are originated but not responded by the counter transaction at the

balance sheet date. The unresponded entries of 31 December 2016 are given below:

Number of

unresponded

entries (Credit)

Amount of

unresponded

entries (Taka)

-

-

-

-

Other liabilities

Provision for loans and advances is created for covering the bank for possible loan losses in the future. General provision is made on outstanding loans

and advances without considering the quality of loans and advances according to the prescribed rate of Bangladesh Bank. Classified loans and advances

of the banks are categorized as sub-standard, doubtful and bad/loss as per guidelines of the Bangladesh Bank. Provisions are made for NPAs as per the

extant guidelines prescribed by Bangladesh Bank and RBI guideline which one is more stringent.

Number of

unresponded

entries (Debit)

Particulars

Amount of

unresponded

entries (Taka)

More than 3 months but within 6 months

More than 6 months but within 1 year

More than 1 year but within 5 years

Above 5 years

-

-

-

-

-

12

-

-

-

-

Up to 3 months

Provision for loans and advances

28

2016 2015

Amount in Taka

a. General


Add: Provision made during the year (3,190,295) 38,526,652

240,406,213 243,596,507

b. Specific


Add: Provision charged to Profit & Loss Account 292,882,351 22,048,839

Add: Provision transfer from Interest Income - -

Less: Recoveries and provision no longer required - -

Less: Interest waiver during the year - -

Less: Write off during the year 392,590,660 240,305,412

328,808,165 428,516,473

Sub-total (a+b) 569,214,378 672,112,981

c. Off-shore Banking Unit 93,587,653 57,934,434

Net actual provision at the end of year (a+b+c) 662,802,031 730,047,415

13.2 General Provisions for UC Loans, Advance and off balance sheet items

a.


Add: Provision made/ (adjusted) during the year (5,717,681) 6,131,931

Sub-total 31,153,532 36,871,212

b.


Add: Provision made/ (adjusted) during the year 2,527,386 32,394,721

Sub-total 209,252,681 206,725,295

Total General Provision (a+b) 240,406,212 243,596,507

13.3


Add: Provision made during the year 32,096,303 -

73,937,842 98,673,668

Less: Amount of interest suspense recovered 5,650,809 6,043,381



34,583,544 41,841,539

13.4

Balance at the beginning of the year - 1,196,245


44,780,733 52,904,893

Less: paid during the year 44,765,341 52,904,893

15,393 -

13.5 Provision for current taxation


Add: Provision made during the year 440,000,000 385,000,000

957,482,673 655,256,492

Less: Adjustment of tax provision for previous years 456,086,402 270,256,492

Less: Excess Tax Provision Transferred to P&L - (62,424,557)

Less: Adjustment of tax provision for previous years - (70,058,117)

456,086,402 137,773,818

501,396,271 517,482,673

Bank has submitted Income Tax Return U/S 82 BB for the financial year 2014 to LTU on 14.07.2016. On 20.07.2016 tax authority asked for

explanation by claiming amounting to Tk. 5,92,66,885 within 27.07.2016. Bank has already given their explanation on 26.07.2016 vide letter no.

10/CO/IT/2138.

(Details are in Annexure-D)

Classified loans and advances of the banks are categorized as sub-standard, doubtful and bad/loss as per guidelines of the Bangladesh Bank. Interest

accrued on Sub-standard (SS), Doubtful and bad/Loss loans is recorded as 'interest suspense' and not taken to income. This interest is recognized as

income as and when it is realized in cash by the bank.

Withholding tax payable (Payable on interest)

General Provision for Loans & Advance

General Provision for Off Balance Sheet Exposure

Provision for off-balance sheet items is made as per BRPD circular No. 8 of 7 August 2007 and 18 September 2007 for covering the bank for possible

losses on off-balance sheet items in the future. Provision amount is included in the General Provision for standard assets. Details movement of

provision for Off-balance sheet items is as follows:

Interest suspense

29

2016 2015

Amount in Taka

13.6

Opening balance (7,762,117) (8,946,097)

Add: Deffered Tax Expense/ (Income) during the year 2,468,142 1,183,981

(5,293,975) (7,762,117)

14

Securities lien with Bangladesh Bank 7,213,626,369 6,462,789,044

Transferred to IBG (Head Office) / Released from Capital (1,176,000,000) (316,378,395)

Funf Transferred from Surplus Profit & Loss Account 877,471,009 1,067,215,719

6,915,097,378 7,213,626,369

14.1 Capital adequacy as per Basel - III

1. Tier-1 (Core capital) (Note 14.1.1) 7,465,790,417 8,014,537,048

2. Tier-2 (Supplementary capital) (Note 14.1.2) 347,505,465 318,420,440

7,813,295,881 8,332,957,488

(Note 14.2) 14,735,382,200 10,576,628,590

53.02% 78.79%

D. Common EquityTier I i.e. @ 4.5% 50.67% 75.78%

50.67% 75.78%

F. Minimum Capital Requirement (MCR)

10 % of RWA 1,473,538,220 1,057,662,859

As per The Bank Company Act, 1991 4,000,000,000 4,000,000,000

Minimum Capital Required (higher one of above) 4,000,000,000 4,000,000,000

G. Surplus equity (A-F) 3,813,295,881 4,332,957,488

14.1.1 Tier - I (Core Capital)

6,915,097,378 7,213,626,369

555,987,013 808,672,796


- -

General reserve - -

Retained Earnings - -

Minority interest in subsidiaries - -

Share money deposit - -

- -

Dividend equalization accounts - -

Sub-total 7,471,084,391 8,022,299,165

Surplus in profit & loss accounts/Retained earnings

Fund deposit with Bangladesh Bank

Non-cumulative irredeemable preference shares

Non-repayable share premium account

Fund deposited with Bangladesh Bank

SBI maintained capital in the form of deposit and lien of securities with Bangladesh Bank under section 13(3) of the Bank Company Act, 1991 and

presented under the guidelines of BRPD circular No. 14 dated 25 June 2003. Details of securities lien with Bangladesh Bank is shown in Annexure-F.

Deferred tax is provided using the liability method for timing differences arising between the tax base of assets and liabilities and their carrying values for

reporting purposes as per Bangladesh Accounting Standard (BAS) - 12.

Deffered Tax Liability/ (Asset)

A. Total regulatory Capital (1+2)

B. Total Risk Weighted Assets (RWA)

E. Tier I i.e. @ 5.5%

SBI Bangladesh's capital structure consists of Tier I and Tier II capital which is aligned with regulatory capital structure. Tier I capital is further

categorised as Common Equity Tier 1 (CET1) and Additional Tier 1 capital. The computation of the amount of Common Equity Tier I, Additional Tier

I and Tier II capital shall be subject to the following conditions:

- The Bank has to maintain at least 4.50% of total Risk Weighted Assets (RWA) as Common Equity Tier I capital.

- Tier I capital will be at least 5.50% of the total RWA.

- Minimum Capital to Risk-weighted Asset Ratio (CRAR) will be 10% of the total RWA.

- Additional Tier I capital can be maximum up to 1.5% of the total RWA or 33.33% of CET 1, whichever is higher.

- Tier II capital can be maximum up to 4% of the total RWA or 88.89% of CET1, whichever is higher.

- In addition to minimum CRAR, Capital Conservation Buffer (CCB) @ 0.625% of the total RWA will be maintained in the form of CET1 in a phased

manner from 2016 to 2019.

C. Total (including Tier II) required is 10%

A. Regulatory capital

Tier I capital of the Bank includes funds deposited with Bangladesh Bank, actuarial gain/(loss) and retained earnings. Tier 1 capital is also called „Core

Capital‟ of the Bank. According to BRPD letter ref no.BRPD (BFIS)661/14B(P)/2015-18014 dated 24 December 2015, 5% of deferred tax recognised

on specific provision shall be allowable as CET 1 capital whilst all other deferred tax assets created on other items shall be deducted from the retained

earnings when calculating the capital adequacy ratio.

Tier II capital consists of general provision and revaluation reserve for Held to Maturity (HTM) and Held for Trading (HFT) securities. General

provision for inclusion in Tier II capital is limited to a maximum 1.25% of Credit RWA calculated under the standardised approach. Revaluation reserve

for securities shown as Tier II capital as on 31 December 2014 will be nullified in a phased manner at the rate of 20% starting from 2015 and will be

fully adjusted by 2019.

30

2016 2015

Amount in Taka

Book value of goodwill - -

Shortfall in provision required against classified assets - -

Deficit on account of revaluation of investment in AFS category - -

Any increase in equity capital resulting from a securitization transaction - -

Deferred Tax Assets 5,293,975 7,762,117

Investment in subsidiary - -

Other if any

Sub-total 5,293,975 7,762,117

Total eligible Tier - I Capital (a) 7,465,790,417 8,014,537,048

14.1.2 Tier - II (Supplementary Capital)

General Provision 333,993,866 301,530,941

Asset revaluation reserve 13,511,599 16,889,499

Preference Share - -

Perpetual Subordinated debt - -

Exchange Equalization Fund - -

Sub-total 347,505,465 318,420,440

Total eligible Tier - II Capital 347,505,465 318,420,440

Total regulatory capital 7,813,295,881 8,332,957,488

14.2

12,056,500,897 8,478,787,463

(i) On-balance sheet 6,667,937,332 7,692,977,275

(ii) Off-balance sheet 5,388,563,566 785,810,189

2. Market Risk 578,273,307 33,770,179

3. Operational risk 2,100,607,997 2,064,070,948

14,735,382,200 10,576,628,590

15 Surplus in profit and loss account/ retained earnings

a. Domestic Banking Unit


Add: Net Profit for the year 327,319,684 648,810,282

Add: Excess Income Tax Provision Written Back - 62,424,557

Add: Net Profit received from Off-share Banking Unit (OBU) 268,129,819 443,219,220

Less: Excess Revaluation Reserve Transfer to Profit & Loss Account 14,477,979 -

Less: Transfer to deposit with Bangladesh Bank 877,471,009 1,067,215,719

Sub-Total 272,999,450 540,542,977

b. Off-shore banking unit:

Opening balance 268,129,819 320,145,040

Add: Net profit during the year 282,987,563 268,129,819

Less: Transfer to Retained Profit (268,129,819) (320,145,040)

Sub-Total 282,987,563 268,129,819

Total (a+b) 555,987,013 808,672,796

16 Other reserve


Add: Amortization gain on HTM securities 40,011,951 78,029,831

118,041,782 120,253,578

Less: Transferred to Profit & Loss Account at maturity 78,029,831 42,223,747

40,011,951 78,029,831


40,011,951 78,029,831

17 Contingent liabilities


Import Letters Of Credit - Sight 1,735,179,160 1,076,586,029

Import Letters Of Credit - Usance - -

Import Letters Of Credit - Back to Back - -

Letter of guarantee (Note 17.1) 19,190,088,926 19,595,943,443

20,925,268,087 20,672,529,472


20,925,268,087 20,672,529,472

17.1 Letter of guarantee

Letter of Guarantee (Local) - -

Letter of Guarantee (Foreign) 19,190,088,926 19,595,943,443

Foreign counter Guarantee - -

19,190,088,926 19,595,943,443

Less: margin 1,153,266 103,656,684

19,188,935,660 19,492,286,758

Amount deductable from CET 1 Capital ( Regulatory Adjustments)

1. Investment (credit) Risk

Risk Weighted Assets (RWA)

31

2016 2015

Amount in Taka

Balance for which the Bank is contingently liable in respect of guarantee issued favoring

Directors - -

Government - -

Bank and other financial institution 19,190,088,926 19,595,943,443

Less : Margin 1,153,266 103,656,684

19,188,935,660 19,492,286,758

17.2 Irrevocable letter of credit

Letter of Credit (Inland) - -

Letter of Credit (General) 1,735,179,160 1,076,586,029

Back to Back L/C - -

1,735,179,160 1,076,586,029

Off-shore banking unit - -

1,735,179,160 1,076,586,029

Less: Margin 574,479,607 402,340,557

1,160,699,554 674,245,472

17.3 Suit filed against the bank

No law suit filed against the bank for which Bank's are contingent liabilities.

Previous years figures has been re-arragned to conform the prescribed formate of Bangladesh Bank.

Bank guarantee no. 05112FG000371 dated: 06.06.2012 for USD 3.8 mio has expired on 07.03.2013 in favor Powercell. Before maturity Powercell

applied for invocking the guarantee. But Lanco Infratech Ltd (Beneficiarry) obtained stay order from Hon'ble Supreme Court untill the matter is finally

heared by the Hon'ble Court. The bank has Foreign Counter Guarantee from SBI, Kolkatta as security.

32

2016 2015

18 Income statement

Income

Interest, discount and similar income 478,834,514 577,454,142

Fees, commission and brokerage 771,784,183 693,665,877

Gains less losses arising from dealing securities - -

Gains less losses arising from investment securities 477,860,493 538,532,052

Income from non-banking assets - -

2,296,317 1,026,391

Profit less losses on interest rate changes - -

1,730,775,507 1,810,678,462

Expenses

Interest, fees and commission 291,321,596 374,919,235

Losses arising from dealing securities - -

199,369,154 200,406,755

162,242,211 124,091,718

Depreciation on banking assets 18,362,663 18,446,427

671,295,624 717,864,136

Off-shore Banking Unit (OBU) 318,419,306 277,056,364

1,377,899,188 1,369,870,690

18.1 Interest, discount and similar income

Interest on loans and advances 351,039,203 372,739,441

Interest on money at call and short notice 127,795,311 204,714,701

Interest on balance with other banks - -

Interest on other sundry income - -

478,834,514 577,454,142


869,762,833 912,647,679

18.1.1 Interest on loans and advances

Cash Credits 167,928,371 140,253,889

Overdrafts 43,125,097 93,040,309

Bill Purchased & Discount - -

Demand Loan 1,276,841 12,685,005

Term Loan 138,708,894 126,760,239

351,039,203 372,739,441

18.2 Fees, commission and brokerage

Fees - -

Commission 771,784,183 693,665,877

771,784,183 693,665,877

18.3 Administrative expenses

Salaries and allowances 103,999,435 107,747,840

73,009,418 72,071,327

Legal expenses 1,461,468 2,835,445

7,805,467 4,233,627

8,899,903 8,719,552



Auditors' fee 300,000 345,000

Repairs & maintenance of fixed assets 3,893,462 4,453,964

199,369,154 200,406,755

(Note-18.3)

(Note-20)

Other operating income

Administrative expenses

Other operating expenses

Amount in Taka

(Note-18.1)

(Note-18.2)

(Note-22)

(Note-19)

(Note-28)

(Note 18.1.1)

Rent, taxes, insurance, electricity etc.

Postage, stamps, telecommunication etc.

Stationery, printing, advertisement etc.

33

2016 2015

Amount in Taka

19 Interest paid on deposits and borrowing etc.

Interest on deposits

Recurring Deposit 16,826,835 16,205,492

Short Term Deposit (STD) 13,926,091 6,328,741

Savings 15,769,189 17,205,701

Term 183,875,986 277,346,554

230,398,100 317,086,487

60,923,496 57,832,748

Interest on local bank accounts - -


384,499,298 443,728,722

20 Investment income

Interest on treasury bonds 477,860,493 365,421,339

Interest (discount) on treasury bills - 170,254,810

Dividend income - 2,855,903

477,860,493 538,532,052

21

Commission for Guarantees 89,762,855 122,808,169

Commission for LC negotiation/amendment/advising 39,500,082 22,236,571

Commission for Foreign bill negotiation - -

Commission for outward remittances 8,885,123 7,849,480

Commission on Visa Processing 560,620,145 475,469,359

Commission for miscellaneous 11,732,258 13,955,388

Foreign exchange earnings 61,283,720 51,346,910

771,784,183 693,665,877

Off-shore banking unit 25,469,769 9,097,775

797,253,952 702,763,652

22 Other operating income

Miscellaneous Income (DBU) 2,296,317 1,026,391

Off-shore Banking Unit (OBU) (401,693) 1,755,042

1,894,624 2,781,433

23

Basic Salary 77,383,568 84,631,917

Salary Casual Staff 18,652,560 15,901,702

Bonus & Ex-gratia 3,529,590 3,364,481

Provident Fund 4,433,718 3,849,740

103,999,435 107,747,840

Off-shore banking unit 3,698,244 -

107,697,679 107,747,840

24 Rent, taxes, insurance, electricity etc.

Rent, rates & taxes 55,514,055 55,200,379

Insurance 7,709,938 7,877,753

Power & electricity 9,785,425 8,993,195

73,009,418 72,071,327

Off-shore banking unit 476,671 -

73,486,090 72,071,327

25 Postage, stamp, telecommunication etc.

Postage & courier 5,082,592 949,930

Telephone-Office 2,548,539 3,196,174

Telephone-Residence 174,337 87,523

7,805,467 4,233,627

26 Stationery, printing, advertisement etc.

Stationery & Printing 8,470,903 8,612,062

Advertisement Statutory 429,000 107,490

Advertisement Public Relation - -

8,899,903 8,719,552

Commission, exchange and brokerage

Salaries and allowances

Interest on money at call and short notice

34

2016 2015

Amount in Taka

27 Auditors' fee

Audit Fee (Statutory Audit) 300,000 345,000

Others - -

300,000 345,000

28 Depreciation on and repairs to bank's assets

A. Depreciation of property plant and equipments

Furniture & fixtures 3,401,076 3,511,154

Office equipments 4,784,936 5,369,596

IT hardware 10,176,651 9,565,678

18,362,663 18,446,427

B. Repairs & maintenance expenses

Transport Maintenance - -

Equipment Maintenance 2,168,296 4,453,964

Hardware & Software Maintenance 1,725,166 -

Premises Maintenance - -

3,893,462 4,453,964

- -

22,256,125 22,900,391

29 Other expenses

Water Consumption 1,360,023 1,622,170

Traveling expenses 1,618,433 3,085,726

Halting allowance 440,372 580,782

House up keep IB officers 47,230 37,680

Medical expenses 2,769,965 2,636,821

Computer expenses 26,280,085 16,861,335

Petrol, Oil and Lubricants 2,192,510 1,966,979

Security 13,031,106 11,970,939

Membership subscription 425,288 565,783

Entertainment: canteen & other 8,809,672 10,597,212

News paper/Books 1,946,780 1,697,358

Conveyance Allowance - 10,632,345

Finacle Expenses 57,805,976 20,116,357

Children Education 884,510 643,085

Clearing Expenses 1,006,484 1,099,876

Other Allowances 3,680,747 4,379,800

Overheads 8,028,520 6,402,829

Charges Donation 1,136,390 2,170,650

Rentals 7,492,796 6,090,522

Training 1,960,736 1,559,979

Charges Others 21,324,590 19,373,491

162,242,211 124,091,718

Off-shore Banking Unit (OBU) 224,473 180,503

162,466,684 124,272,222

30

a) Provision on loans & advances

Provision made/ (adjusted) during the year for STD account (5,717,681) 6,131,931

Specific Provision made during the year 292,882,351 22,048,839

Recoveries/Provision no longer required - (2,755,427)

287,164,671 25,425,343

Provision on LC & BGProvision on LC & BG Provision on LC & BGProvision on LC & BG 2,527,386 32,394,721

Less: Recoveries/Provision no longer required - -

2,527,386 32,394,721

c) Off-shore Banking Unit (OBU) 35,431,743 8,926,545

35,431,743 8,926,545

Grand Total (a+b+c) 325,123,800 66,746,609

b) Provision for Off Balance Sheet

C. Off-shore Banking Unit (OBU)

Provisions

Previous year provision for off balance sheet items was included with provision for loans & advances and shown in the profit and loss account

grossly. Now we have rearranged the figures and shown separately to confirm the current year's presentation.

35

2016 2015

Amount in Taka

31 Related party/(ies) transactions

Year end balance

NIL

32

1,242,080.63 (637,366.00)

40,415.16 -

612,128.44 -

1,894,624.23 (637,366.00)

33

(73,009,418) (72,071,327)

(1,461,468) (2,835,445)

(7,805,467) (4,233,627)

(8,899,903) (8,719,552)

(300,000) (345,000)

-

(22,256,125) (22,900,391)

(162,466,684) (100,007,346)

(276,199,065) (211,112,688)

34

Cash 2,885,251,707 537,300,701

Balance with other banks and financial institutions 349,732,131 219,289,052

Money at call and short notice 1,380,000,000 1,810,000,000

Prize bonds 57,800 914,300

4,615,041,638 2,567,504,053

Nill NIL

Nature of Transaction

NIL

The bank had no transactions with related parties in the normal course of business an on arm length basis. As on 31 December 2016, the bank

had following transactions with the 'Related Party/(ies)' as defined in the BRPD Circulars No. 14 issued by the Bangladesh Bank on 25 June

2003.

Name of the Related Parties Relationship

Receipts from other operating activities

SWIFT Charges

Interest Income from Local Banks

Service & Other Charges from Vostro Account

Payment for other operating activities

Charges on loan losses

Depreciation on and repairs to bank's assets

Other expenses

Cash and cash-equivalents items Breakup


Legal expenses



Auditors' fee

36

2016 2015

PROPERTY AND ASSETS

Cash 3 2,361,501,661 537,300,701

Cash in hand (Including foreign currency) 30,902,087 33,878,228

Balance with Bangladesh bank and its agent bank(s) (Including foreign

currency)2,330,599,574 503,422,473

Balance with other Banks and Financial Institutions 4 349,732,131 219,289,052

Inside Bangladesh 11,811,434 28,755,594

Outside Bangladesh 337,920,697 190,533,458

Money at call and short notice 5 1,380,000,000 1,810,000,000

Investments 6 7,949,618,992 8,295,526,431

Government 7,946,480,102 8,292,387,541

Others 3,138,890 3,138,890

Loans and advances 7 3,177,658,345 4,409,452,413

Loans, cash credit, overdrafts etc. 3,175,934,530 4,404,078,651

Bills purchased & discounted 1,723,815 5,373,762

Fixed assets including premises, furniture and fixtures 8 86,087,904 84,231,987

Other assets 9 1,023,458,061 796,102,333

Non-banking assets 10 - -

Total Property and Assets 16,328,057,094 16,151,902,917

(16,294,653,254)

LIABILITIES AND CAPITAL 33,403,840

Liabilities

Borrowings from other banks, financial institutions and agents 11 - -

Deposit and other accounts 12 7,932,150,891 6,998,205,205


Saving deposits 495,485,884 464,115,751

Fixed deposits 3,372,359,541 3,815,822,651

Other deposits 958,337,807 652,276,312

Other liabilities 13 1,167,797,423 1,321,498,535

Total liabilities 9,099,948,314 8,319,703,740

Capital and shareholders' equity

Fund deposited with Bangladesh Bank 14 6,915,097,378 7,213,626,367

Surplus in profit and loss account/ Retained earnings 15 272,999,451 540,542,978

Other reserve 16 40,011,951 78,029,831

Total shareholders' equity 7,228,108,780 7,832,199,176

Total liabilities and shareholders' equity 16,328,057,094 16,151,902,916

0 1

16,149,047,015

0.12 0.86

Country Head


Notes


State Bank of India

Balance Sheet



Amount in Taka






37

2016 2015

Off-Balance Sheet Items

Contingent Liabilities

Acceptances and endorsements - -

Letter of guarantees 19,190,088,926 19,595,943,443

Irrevocable letter of credits 1,735,179,160 1,076,586,029


Other contingent liabilities - -

Total contingent liabilities 17 20,925,268,087 20,672,529,472

Other commitments

Documentary credits and short term trade related transactions - -

Forward assets purchased and forward deposits placed - -

Undrawn note issuance and revolving underwriting facilities - -

Undrawn formal standby facilities, credit lines and other - -

Commitments- lease hold assets - -

Total other commitments - -

Total Off-Balance Sheet items including contingent liabilities 20,925,268,087 20,672,529,472

Country Head


Notes


Taka





38

2016 2015

Operating Income

Interest income 18.1 478,834,514 577,454,142

Interest paid on deposits and borrowing etc. 19 291,321,596 374,919,235

Net interest income 187,512,918 202,534,907

Investment income 20 477,860,493 538,532,052

Commission, exchange and brokerage 21 771,784,183 693,665,877

Other operating income 22 2,296,317 1,026,391

Total operating income 1,439,453,911 1,435,759,227

Salaries and allowances 23 103,999,435 107,747,840

Rent, taxes, insurance, electricity etc. 24 73,009,418 72,071,327

Legal expenses 1,461,468 2,835,445

Postage, stamps, telecommunication etc. 25 7,805,467 4,233,627

Stationery, printing, advertisement etc. 26 8,899,903 8,719,552

Chief executive's salary & fees -- -


Auditors' fee 27 300,000 345,000

Charges on loan losses - -

Depreciation on and repairs to bank's assets 28 22,256,125 22,900,391

Other expenses 29 162,242,211 124,091,718

Total operating expenses 379,974,028 342,944,900

Profit/(loss) before provisions 1,059,479,883 1,092,814,327

Provision for

Loans and advances 287,164,671 25,425,343

Provision for diminution in value of investments - -

Off balance sheet items 2,527,386 32,394,721

Total provision 30 289,692,057 57,820,064

Profit/(loss) before taxes 769,787,826 1,034,994,263

Provision for Tax

Current tax expense 13.5 440,000,000 385,000,000

Deferred tax expense/ (income) 13.6 2,468,142 1,183,981

Total provision for tax 442,468,142 386,183,981

Total profit/(loss) after taxes 327,319,684 648,810,282

Appropriations


General reserve - -

Dividend etc. - -

Retained earnings 327,319,684 648,810,282

Country Head







Amount in Taka


State Bank of India




Notes

39

2016 2015

A. Cash flows from operating activities

Interest receipts 966,970,849 1,401,005,671

Interest payment (308,037,156) (455,887,606)

Dividend received 2,855,903 2,855,903

Fees & commissions receipts 710,500,464 642,318,967

Received from loan write off recovery - -

Cash payments to employees (99,565,717) (101,669,841)

Cash payments to suppliers - -

Income tax paid (256,440,866) (260,000,000)

Receipts from other operating activities 32 2,296,317 (637,366)

Payment for other operating activities 33 (275,974,593) (211,112,688)

Operating profit/(loss) before changes in operating assets &

liabilities 742,605,201 1,016,873,040

Increase/decrease in operating assets & liabilities

Loans & advances to customers 1,231,794,068 (90,707,366)

Other assets (261,322,164) (174,972,122)

Deposits from customers 933,945,686 613,207,894

Other liabilities (153,701,112) (465,293,888)

Cash utilised in operating assets & liabilities 1,750,716,479 (117,765,482)

Net cash from operating activities 2,493,321,680 899,107,558

B. Cash flows from investing activities

Payments for purchase of securities 143,222,656 (512,304,178)

Investment in prize bond 856,500 77,300

Purchase/sale of property, plant & equipment 1,102,984 (12,305,247)

Net cash used in investing activities 145,182,140 (524,532,125)

C. Cash flows from financing activities

Receipts from the capitalization/ Capital Transferred to IBG (1,176,000,000) -

Net cash flows from financing activities (1,176,000,000) -

Net increase/decrease in cash 1,462,503,819 374,575,433

Effects of exchange rate changes on cash & cash equivalent 61,283,720 51,346,910

Cash and cash equivalents at the beginning of year 2,567,504,053 2,141,581,711

Cash and cash equivalents at the end of year 34 4,091,291,592 2,567,504,053

Country Head




Note


Amount in Taka






Cash Flow Statement

40

7,213,626,369 78,020,831 540,542,978 7,832,190,176

- - 268,129,819 268,129,819

Net profit for the year (DBU) - - 327,319,684 327,319,684


Amortisation gain on HTM Securities - 40,011,951 - 40,011,951

Fund untilised which were kept as Capital 877,471,009 - (877,471,009) -

Partial Capital Transferred to IBG (India) (1,176,000,000) - - (1,176,000,000)

Excess Revaluation Reserve Transferred to Profit & Loss Account - - 14,477,979 14,477,979

6,915,097,378 40,011,951 272,999,451 7,228,108,780

(0.23) 6,915,097,378 40,011,951 272,999,451

6,462,789,044 42,223,747 453,304,638 6,958,317,428

Net profit for the year - - 648,810,282 648,810,282

Fund released which were kept as Capital - - - -

Adjsutement in respect of previous year profit of OBU - - 443,219,220 443,219,220


Amortisation gain on HTM Securities - 78,020,831 - 78,020,831

Fund utilised as Capital 1,067,215,719 - (1,067,215,719) -

Fund released which were kept as Capital (316,378,395) - - (316,378,395)

Excess Provision for Income Tax written back - - 62,424,557 62,424,557

7,213,626,369 78,020,831 540,542,978 7,832,190,176

Statement of Changes in Equity

(Figures in Taka)

State Bank of India

TotalFund deposited with

Bangladesh Bank



ParticularsSurplus in Profit &

Loss Account Other Reserve









Adjsutement in respect of previous year profit of OBU



Country Head

41

(Figures in Taka)

0 - 1 1 - 3 3 - 12 1 - 5 Above 5

Month Months Months Years Years

Assets

Cash in hand 30,902,087 - - - - 30,902,087

Balance with Bangladesh Bank 2,330,599,574 - - - 0 2,330,599,574

Balance with other bank, Other Banks and financial Institutions (Including

foreign currencies)349,732,131 - - - - 349,732,131

Money at call and on short notice 1,380,000,000 - - - - 1,380,000,000

Investments 57,800 1,656,749,052 2,832,205,953 979,671,970 2,480,934,216 7,949,618,992

Loans and advances 239,773,280 715,405,782 593,670,848 728,847,578 899,960,857 3,177,658,345

Fixed assets including premises, furniture & fixtures - - - - 86,087,904 86,087,904

Other assets - - - - 1,023,458,061 1,023,458,061 Non - banking assets - - - - - -

Total Assets 4,331,064,872 2,372,154,834 3,425,876,801 1,708,519,548 4,490,441,038 16,328,057,094

LIABILITIES

Convertible subordinated debts - - - - - -

Money at call and on short notice - - - - - - Deposits & other accounts 2,344,743,803 1,448,410,753 776,478,251 1,077,979,306 2,284,538,778 7,932,150,891 Provision & Other Liabilities 881,506 568,066,970 - 7,826,957,727 8,395,906,203

Total liabilities 2,344,743,803 1,449,292,259 1,344,545,221 1,077,979,306 10,111,496,505 16,328,057,094

Amount of net liquidity difference 1,986,321,069 922,862,575 2,081,331,581 630,540,242 (5,621,055,466) 1

Net result of the Liquidity Statement represents the 'Shareholders Equity' of the Bank.


State Bank of India

Liquidity Statement

(Assets & Liabilities Maturity Analysis)


Domestic Banking UnitBangladesh Operations





TotalParticulars

- - Borrowings from Bangladesh bank, other Banks, financial institutions and

agents- - - -

42

1. Corporate information

1.2 Principal activities

1.3 Capital structure of the Bank

2. Significant accounting policies and basis of preparation of financial statements

2.1 Basis of accounting

2.2 Basis of consolidation

2.3 Use of estimates and judgments

2.4 Foreign currency transactions

i. Functional and presentational currency

ii. Foreign currency transaction

2.5 Taxation

The principal activities carried out by the bank include all kinds of commercial banking activities / services to its customers through its

branches and electronic delivery channels in Bangladesh. The bank is a foreign bank as per Income Tax Ordinance 1984.

SBI maintained capital in the form of deposit and lien of securities with Bangladesh Bank under section 13(3) of the Bank Company Act,

1991 and presented under the guidelines of BRPD circular No. 14 dated 25 June 2003.

The financial statements, namely, Balance Sheet, Profit & Loss Accounts, Cash Flow Statement, Statement of Changes in Equity, Liquidity

Statement and relevant notes and disclosure thereto, are prepared on a going concern basis under historical cost conversion, and in

accordance with First Schedule of the Bank Company Act 1991, as amended BRPD circular no. 14 of 25 June 2003.

A separate set of records for consolidating the Balance Sheet and Profit and Loss Accounts of the branches are maintained at the Country

Office of the Bank based on which these financial statements have been prepared.

The preparation of the financial statements in conformity with BFRS requires management to make judgments, estimates and assumptions

that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. The estimates and

associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the

circumstances, the results of which form the basis of making the judgments about carrying amounts of assets and liabilities that are not

readily apparent from other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting

estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the

revision or future periods, if the revision affects both current and future periods.

Financial statements of the Bank are presented in Taka, which is the Bank's functional and presentation currency.

State Bank of India



Notes to Financial Statements

For the year ended 31 December 2016

The State Bank of India incorporated in India under the State Bank of India Act 1955. State Bank of India has been operating in

Bangladesh since 05 May 1975. It operates its activities through six branches – Two in Dhaka, one in Chittagong, one in Sylhet, one in

Rajshahi and in Khulna. Apart from these branches, the bank has two OBU units; one in Dhaka and another in Chittagong.

Foreign currency transactions are converted into equivalent Taka currency at the ruling exchange rates on the respective dates of

such transactions as per BAS-21 "The effects of Changes in Foreign Exchange Rates".

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

prevailing buying and selling rates of the relevant foreign currencies at that date except "Balances with other Banks and Financial

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

November 2004. Differences arising through buying and selling transactions of foreign currencies on different dates of the year

have been adjusted by debiting/ crediting exchange gain or loss account.

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

43

2.5.1 Current tax

2.5.2 Deferred tax

2.6 Assets and basis of their valuation

2.6.1 Cash and cash equivalents

2.6.2 Investments

2.6.2.1 Held to maturity (HTM)

2.6.2 Loans and advances

(a)

(b)

(c)

Interest on loans and advances is calculated on a daily product basis but charged and accounted for quarterly on accrual basis.

Interest on classified loans and advances is kept in interest suspense account as per directives of Bangladesh Bank and such interest

is not accounted for as income until realized from borrowers.

Interest is not charged on bad and doubtful loans and advances from the date of filing money suits against the borrowers.

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

Bangladesh Bank's BCD circular nos. 34 of 16 November 1989, 20 of 27 December 1994 and 12 of 04 September 1995 and BRPD

circular nos. 16 of 06 December 1998, 9 of 14 May 2001, 2 of 15 February 2005, 9 of 20 August 2005, 17 of 6 December 2005, 5 of

5 April 2008, 07 of 14 June 2012, 14 of 23 September 2012, 19 of 27 December 2012 and 5 of 29 May 2013 respectively at the

following rates:

Prize Bond & Other Bond Cost None None

Unquoted Shares (ordinary) Cost Cost None

Treasury Bills (HTM) Cost Amortized cost Increased or decreased in value to equity.

Treasury Bonds (HTM) Cost Cost

No amortization for at per Investment / Amortized Gain

to Revaluation reserve/ Loss to P&L (in case of Discount

or Premium)

Cash and cash equivalents include currency notes and coins on hand, balances held with Bangladesh Bank and most liquid financial assets

which are subject to insignificant risk of changes in their fair value, and are used by the Bank to meet its short term obligations.

All investments securities are initially recognized at cost, including acquisition charges associated with the investment. Premiums are

amortized and discount accredited, using the effective yield method and are taken to discount income. The valuation method of Marking

to Market for investments used are:

Investments which have "fixed or determinable payments' and fixed maturity that the group has the positive intent and ability to held to

maturity, other than those that meet the definition of 'Held at amortized cost others' are classified as held to maturity. These investment

are subsequently measured at amortized cost, less any provision for impairment in value. Amortized cost is calculated by taking into

account any discount or premium in acquisition. Any gain or loss on such investments is recognized in the statement of income when the

investment is derecognized or impaired as per IAS -39 " Financial Instruments : Recognition and Measurement"

Value of Investments has been shown as under:

Investment Class Initial Recognition Subsequent

Measurement Recording of changes

The current tax payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the Profit and Loss

Statement because it excludes items of income or expense that are taxable or deductible. The Bank's liability for current tax is calculated

using tax rates that have been enacted or substantively enacted by the date of Balance Sheet.

Provision for current income tax has been made @ 42.5% on accounting profit made by the Bank after considering some of the add backs

of income and disallowances of expenditure as per Income Tax Ordinance 1984.

Deferred tax liabilities are the amount of income taxes payable in future periods in respect of taxable temporary differences. Deferred tax

assets are the amount of income taxes recoverable in future periods in respect of deductible temporary differences. Deferred tax assets and

liabilities are recognised for the future tax consequences of timing differences arising between the carrying values of assets, liabilities,

income and expenditure and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates and tax laws that

have been enacted or substantially enacted at the date of Balance Sheet. The impact on the account of changes in the deferred tax assets

and liabilities has also been recognised in the Profit and Loss Accounts as per BAS 12 “Income Taxes”.

44

(i) General provision on unclassified loans and advances Rate (%)

Standard general loans and advances 1%

Standard Small & Medium enterprise Financing 0.25%

Standard loans to Merchant Banking/BHs/SDs 2%

2%

Standard Consumers loan Scheme other than HF and LP 5%

Standard Short term Agri and Micro credit 2.5%

Special Mention Account general Loans and advances 1%

Special mention account Small & Medium enterprise Financing 0.25%

Special mention account loans to BHs/MBs/Sds 2%

Special mention account HF and LP 2%

Special mention account Consumer's loan scheme other than HF &LP 1%

(ii) Specific provision on classified loans and advances

Substandard (Agri & Micro credit) 5%

Doubtful (Agri & Micro credit) 5%

Substandard 20%

Doubtful 50%

Bad or Loss 100%

(d)

2.6.3 Fixed assets and depreciation

a) Recognition

b) Depreciation

(i) Depreciable assets are stated at cost less accumulated depreciation.

(ii)

(iii)

c) Sale of fixed assets

d) Impairment

e) Others

Sale price of fixed assets are determined on the basis of fair value of the assets. Gain or loss on sale of assets are recognized in

profit & loss account as per provision of BAS 16 Property plant & equipments.

If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset should be reduced to its

recoverable amount. That reduction is an impairment loss. An impairment loss is recognised as an expenses in the income

statement.

Useful life and method of depreciation of property plant & equipment are reviewed periodically. As useful lives of assets do not

differ significantly from that previously estimated, Bank Management does not consider to revalue its assets by the meantime.

Furniture & fixture 10%

Office equipment 25%

Computer 25%

Furniture, fixture and equipments have been accounted for at cost less accumulated depreciation. Cost includes expenditure that is

directly attributable to the acquisition of the items.

Depreciation has been charged on reducing balance method at the following rates. Depreciation is charged for full year while

assets are purchased within first six month of the year and 50% depreciation is charged in case assets. are purchased during

the next six months of the year.

No depreciation has been charged during the year of disposal.

Category of assets Depreciation Rate

Standard Housing Finance and loans for professional to set up a

Loans and advances are written off to the extent that there is no realistic prospect of recovery, and against which legal cases are

pending for more than five years as per guidelines of Bangladesh Bank subject to getting approval from Corporate Centre

Mumbhai. These write offs, however, will not undermine/affect the claim amount against the borrowers. Detailed memorandum

records for all such written off accounts are meticulously maintained and followed up.

The cost of an item of furniture, fixture and equipments (Fixed assets) shall be recognized as an asset if, and only if it is probable

that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably.

45

2.6.4 Other Assets

2.7 Retirement benefits to the employees

a)

b)

2.8 Revenue recognition

(i)

(ii)

(iii)

(iv)

2.9 Cash flow statement

2.10 Statement of liquidity

2.11 Statement of changes in equity

2.12 Reconciliation of books of account

Commission and discount on bills purchased and discounted are recognized at the time of realization.

Cash Flow Statement is prepared principally in accordance with BAS-7 "Cash Flow Statement" under direct method as per guidelines of

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

during the financial year. It reported cash flows during the period classified by operating activities, investing activities and financing

activities.

The liquidity statement has been prepared in accordance with the remaining maturity period of the value of the assets and liabilities as on

the reporting date as per the guidelines provided by Bangladesh Bank in BRPD Circular No 14 of 25 June 2003, DOS Circular No 02 of

29 March 2011.

Statement of changes in equity is prepared in accordance with BAS-1" Presentation of Financial Statements" and under the guidelines of

BRPD circular no.14 dated 25 June 2003.

Books of account in regard to inter bank (inside Bangladesh and outside Bangladesh) and inter branch transactions are being regularly

reconciled. The Bank however, formed a task force to take positive steps to eliminate the long outstanding inter branch entries within the

shortest period of time.

Gratuity

The bank has a gratuity scheme, which covers all of its permanent employees. The gratuity would be payable equivalent to 02

month‟s last drawn basic salary for each completed year of service to the employees who have been in the service of the Bank for

minimum period of 12 years in the Bank (maximum ceiling Tk. 30.00 lac). The company made provision for gratuity during the year

as Bangladesh Accounting Standard.

The revenue during the year is recognized as follows which satisfy all conditions of revenue recognition as prescribed by BAS 18

"Revenue".

Interest is calculated on daily product basis on unclassified loan and advances but charged on a quarterly basis.

Interest is charged on classified loans and advances as per Bangladesh Bank's BRPD circular no. 16 of 06 December 1998 and

other related circulars and such interest is not taken into income.

Dividend income is recognized at the time when right to receive is established.

Other assets include all other financial assets and include interest, fees and other unrealised income receivable, Prepaid interest expenses

on fixed deposits, advance for operating and capital expenditure, security deposits and stocks of stationery & stamps etc. Provision for

other assets is made as per BRPD circular no. 14 of 25 June 2001.

Provident fund

The Bank operates a contributory provident fund for its eligible employees. The Commissioner of Income Taxes, Dhaka has

approved the provident fund as a recognized provident fund as per section 2(1) of Part B of the First Schedule of Income Tax

Ordinance 1984. The Fund is administered by a Board of Trustees consisting 3 (three) members and funded by contributions both

from employees and Bank @10% of basic salary. Interest earned from the investment is credited to the members‟ accounts

annually. Provident fund benefits are given to the employees of the Bank in accordance with provident fund rules of the Bank.

46

2.13 Risk Management

a)

b) Foreign Exchange Risk Management

c) Asset Liability Management

Assets Liability Management is the most important aspect for the Financial Institution to mange Balance Sheet Risk, especially for

managing of liquidity risk and interest rate risk. Change in Market Liquidity and interest rate expose bank business to the risk of

loss. Failure to identify the risks associated with business and failure to take timely measures in giving a sense of direction may

threaten the survival of institution.

As such, it is important that senior management must understand the existence of such risk on the balance sheet and they should

ensure that the structure of the banks business and the level of balance sheet risk it assumes are effectively managed and appropriate

policies and procedures are established to control and limit these risks, and that resources are available for evaluating and

controlling interest rate risk. To address all the risk elements of the balance sheet ALCO meeting was conducted every month in

2015, ATM desk of the bank analyses the balance sheet risk and prepares the monthly ALCO papers as per the guidelines of

Bangladesh Bank. By strongly monitoring the maturity gap of assets and Liabilities and interest rate movement, bank is able to

maintain optimum liquidity with required regulatory compliances. A policy Guideline on Assets Liability Management has been

formulated, approved by appropriate authority of the bank and revised time to time.

The risk of the Bank may be defined as the possibility of losses, financial or otherwise. The risk management of the Bank covers 06 core

risks i.e. Credit Risk, Internal Control & Compliance Risk, Money Laundering Risk, Asset Liability Management Risk (Balance Sheet Risk),

Foreign Exchange Risk and Information Technology Risk. Moreover, Operational Risk, Market Risk, Liquidity Risk, Residual Risk,

Reputation Risk, Strategic Risk, Settlement Risk and Environmental & Climate Change Risk are also brought into consideration. Success

or failure of the Bank depends to a great extent on proper identification and minimization of these risks. The prime objective of the risk

management is that Bank takes well calculative business risks while safeguarding the Bank's capital, its financial resources and profitability

from various risk areas. A separate Risk Management Unit (RMD) has been formed headed by one India Based Officer where all the

Chief Executive Officer & Division Heads of Head Office are the members and the Division Head(AVP- R&C), Internal Control &

Compliance Division is the member secretary. The Committee is responsible to our Honorable Country Head for compliance and

implementation of the decisions. Monthly meeting of Risk Management Department is arranged on regular basis where different risks are

discussed and decisions are gradually implemented. Minutes of Risk Management Department meeting along with risk management papers

are submitted to Bangladesh Bank on quarterly basis. Yearly Health Report is placed before the Management in which analytical &

exhaustive information are highlighted. Yearly summary report on the audit findings are also placed before the Audit committee of the

Local Management mentioning & highlighting different incidences and the decisions are implemented by the Bank. As a part of risk

management, adequate capital is maintained against Credit Risk, Market Risk and Operational Risk under Basel-II accord. Under the

second pillar of Basel-II, a Supervisory Review Process (SRP) team has been formed comprising Honorable Chief Executive

Officer(Dhaka Branch), Vice President(Operations), Accounts Division, Division Head, Audit Division, Division Head, Credit

Administration, Monitoring & Recovery Division, Division Head, International Division and Division Head, Credit Division-I to review,

monitor and maintain adequate capital considering all relevant risks. Stress Testing is done on quarterly basis to assess the impact of

different risks associated with banking business on asset, liability & ultimately on capital and the report is submitted before the Local

Management and to Bangladesh Bank regularly.

As per BRPD Circular no. 11 dated 27 October 2013, a Risk Management Committee of the Board has been formed and the Committee

has already started it's operation.

Credit Risk

Credit risk is the possibility that a borrower or counter party will fail to meet its obligations in accordance with agreed terms. The

failure may result from unwillingness of the counter party or decline in his/her financial condition. Credit risk, therefore, arises

from the bank‟s dealing with or lending to corporate, individuals, other banks or financial institutions. A separate Credit Division

has been formed at Head Office since the inception of the bank, which is assigned with the duties of marketing and assessment of

credit products, maintaining effective relationship with the customer and exploring new business opportunities. In line with

Bangladesh Bank guidelines the bank has segregated marketing, approval and monitoring/recovery functions.

The credit risk management includes borrower risk analysis, financial statement analysis, industrial analysis, historical performance

of the customer, security of the proposed credit facility and market reputation of the borrower etc. SBI takes its lending decision

based on the credit risk assessment report by Appraisal Team. In determining Single Borrowing/Large Loan limit, the instructions

of Bangladesh Bank are strictly followed.

Foreign Exchange Risk is defined as the potential change in earnings arising from the change in market prices. The market directly

affects each country‟s bond, equities, private property, manufacturing and all assets that are available to foreign investors. Foreign

exchange rates also play a major role in determining whom finances government deficits, which buy equities in companies and

literally affects and influences the economic scenario. Due to high risk market the role of treasury operations is crucial.

As per Bangladesh Bank‟s guidelines the bank has segregated the Front and Back office for Treasury Operations. Front Office

independently conducts the transactions and the Back Office is responsible for verification of the deals and passing of their entries

in books of accounts. All Nostro accounts are reconciled on monthly basis and all foreign exchange transactions are revalued at

Marked-to-Market rate as determined by Bangladesh Bank.

47

d) Prevention of Money Laundering

e) Internal Control and Compliance

a)

b)

c)

f) Information technology

As approved by the appropriate authority, the establishment of our own ATM Network with 6 ATM Booths across the country.

We have already participated in the National Payment Switch as Pilot Bank under supervision of Bangladesh Bank and inaugurated

our ATM Debit Card. We have obtained Principal Membership Visa Card. Our ATM card is acceptable in all the VISA ATm Booth

and we have not charged any transaction cost if the card is use in other Bank's ATM Booth.

It is a policy of the Bank to put all branches of the Bank under any form of audit four times in a year and IC & CD has been

working in that direction. All the activities of the Internal Control & Compliance Division are devoted to address and mitigate

operational risks of the Bank in more effective way to ensure efficiency and effectiveness of performance, ensure reliability and

completeness of financial and management information and to ensure compliance with legal and regularity requirements.

State Bank of India, Bangladesh Operation follows the guideline stated in BRPD Circular No. 14 dated 23 October 2005 regarding

"Guideline on Information and Communication Technology for Scheduled Banks" and BRPD Circular No. 21 dated 20 May 2010

"Guideline on ICT Security:

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

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

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

We have launched our Internet Banking System using our in-house developed software and we are extending this services to the

customers of our all Online Branches.

Audit & Inspection unit;

Monitoring Unit and

Compliance Unit.

The units have been functioning independently and separately with direct reporting lines to the Head of IC & CD.

In addition, Departmental Control Function Checklist has been introduced in the branches and divisions at Head Office under

direct supervision of Monitoring Unit of IC&CD which ensures compliance with regulatory rules and regulations as well as general

banking norms and procedures.

Policy guidelines on RISK BASED INTERNAL AUDIT (RBIA) system have been formulated and the branches have already been

brought under RBIA networks. As per RBIA, marks have been allocated for rating of the branches in terms of business risk and

control risk. The branches scoring higher are being subjected to more frequent audits.

Money laundering has been identified as a major threat to the financial services community, It is important that the management of

Banks and other Financial Institutions view prevention of money laundering as part of their risk management strategies and not

simply as a stand-alone requirement that is being imposed by the legislation. The management of SBI is fully aware that the financial

system shall not be and cannot be used as a channel for criminal activities. Therefore, co-ordination and co-operation between the

concerned parties are essential for its success. The band has designated Chief Anti Money Laundering Compliance Officer

(CAMLCO) at Head Office and compliance officers at branches to review the transactions of the accounts to identify suspicious

transaction Profile (TP) has been incorporated in the Account Opening Form (AOF) along with other KYC related issues.

As per the guidelines; Account Opening Form of our Bank has been redesigned with provision for obtaining particulars of personal

identity of customer and transaction profile. The bank has also undertaken enhanced due diligence in case of opening of accounts

of Politically Exposed Persons(PEP) as per directive of Bangladesh Bank which is in line with recommendation of Financial Action

Task Force of U.N. Anti Money Laundering units have been set up in all the branches under a central unit at Head Office. Basic

training has been imparted to all the officers of the Bank on compliance with rules and regulations of Money Laundering Act so as

to prevent opening of suspicious accounts and identify suspicious transactions.

Internal Control and Compliance (ICC) is a critical component of Bank management and foundation for the safe and sound

operation of banking organization. A system of strong internal control and compliance can help to ensure that the goals and

objectives of a banking organization will be met, that the bank will achieve long-term profitability targets, and maintain reliable

financial and managerial reporting. Operational loss may arise from error and fraud due to lack of strong internal control and

compliance culture. Effective Internal Control & Compliance system can help to ensure that the bank will comply with laws and

regulations as well policies, plans, internal rules and procedures, and decrease the risk of unexpected losses or damage to the bank‟s

reputation.

Internal Control & Compliance Division of the Bank under direct supervision of Audit Committee of the Board has been

implementing detail guidelines on ICC risk management to assess and mitigate risks and as part of it the IC & CD has been divided

into three (3) independent units; namely:-

48

2.14 Disclosure on fraud and forgeries committed by bank employees:

2.15 Off-balance sheet items

2.16 Offsetting

2.17 Interest paid and other expenses


2.19 Number of employees

2.20 Provision for liability

Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right

to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability substantially.

In terms of the provisions of BAS 1 “Presentation of Financial Statements” interest and other expenses are recognized on accrual basis.

These financial statements cover one calendar year from 01 January 2016 to 31 December 2016.

The number of employees employed in the Bank as on 31 December 2016 was 111, of which 92 were male and 19 were female. The

number of employees per branch was 18.20 excluding 20 employees in the Country office of the Bank.

A provision is recognized in the balance sheet when the Bank has a legal or constructive obligation as a result of a past event and it is

probable that an outflow of economic benefit will be required to settle the obligations, in accordance with the BAS 37 “Provisions,

Contingent Liabilities and Contingent Assets”.

We have successfully implemented Bangladesh Automated Clearing House (BACH) and Bangladesh Electronic Fund Transfer

System (BEFTN), Credit Information Bureau (CIB) Reporting as per guidelines of Bangladesh Bank.

We have established our website www.sbibd.com where form the visitors can get information about our products, charge schedule,

career opportunities, procurement notices and present status of our bank. The website is updated periodically and also as and when

required. Communication through email among our Branches, Country Office and different Divisions of Country Office under our

own Mail Server at IT Division, Country Office has become quick and easier.

To ensure proper training to our officials, Information Technology Division arranged need based hands on training program at our

Computer Lab daily in addition to training/workshop arranged at Country Office Conference Roam through Video Conference

throughout the year. During the year 2016, we conducted 15 training programs at our Computer Lab on 7 (seven) different

Topics/Modules covering 42 participants and 2 (two) Workshop on General Banking Practices and related IT Operations through

Video Conference covering 24 participants from Branches/Country Offices across the country.

No fraud occurred during the period

Under general banking transactions, liabilities against acceptance, endorsement and other obligations and bills against which acceptances

have been given and claims exist there against, have been shown as off-balance sheet items.

49

2.21 Events after reporting period

2.22 BASEL III implementation

I.

II.

III.

2.23 Training

2.24 Audit committee

-

-

-

-

-

-

2.25

Sl.

No.

Long Term Short Term

1 AA AR-2

2 AA- AR-2

3 AA- ST-2

4 AA+ ST-2

5 AA ST-2

Member

Basic indicator approach for operational risk.

The Committee has suggested for continuous training of the officers and employees of the banks for capacity building and

formation of an implementation team. Implementation team would remain responsible for overall supervision of BASEL III

implementation in their banks. It has also suggested that the board of directors should also remain updated on the issue.

Accordingly, the Bank has formed BASEL III implementation team and is providing training to senior management, credit

officers and managers of the Bank. BASEL III implementation team has been regularly monitoring and to give various

suggestion/instruction regarding implementation of the above three pillars.

Jan to Dec 2012 CRISL

Jan to Dec 2011 CRISL

Year Rating Agencies



Review the status of the Special Mentioned Account (SMA) and Bad/Loss loan.

Reviewing the Anti money laundering policy of the Bank.

Credit Rating of the Bank

Credit rating of the Bank of last four years are shown below-


During the year, the Audit Committee of the Board conducted 6 (Six) meetings in which among others, the following issues

were discussed:

Facts

Discuss the Comprehensive Inspection report of Bangladesh Bank of Bangladesh Operations.

Discuss the audit report of different Country Office departments and Branches conducted by the Bank's internal audit team from

time to time.

Discuss the fraud/forgeries & operational loss report.

Review the position of reconciliation with other bank and Nostro Account.

D.P.Das VP Member B.Com

Mohammad Masudul Amin SAVP(R&C) Member MBA (Finance), MBM, DAIBB

Protim Kumer Mallick FAVP(IT) Member CSE, MBA(MIS), LLB, JAIBB,LLM

Md. Maksudur Rahman FAVP(A&T) Member M.COM, MBA (Finance), MBM

Milon Kumar Mitra AM (IA)

Satwinder Singh HRMD Chairman M.A, CAIIB, Diploma in Business

An audit committee was constituted by the Senior Management of State Bank of India, Bangladesh Operation. Subsequently, one of the

member has retried from the bank on 31st December 2016 and reconstituted the Audit Committee is under process the earlier comittee is

as under:

Name Status in the

BankStatus in the committee

Educational

Qualification

In implementation of the human resources development strategy, the Bank sent its employees to different training organizations to build

up professionals with technical, human and conceptual skills. This is focused to ensure a formal platform where employees can exchange

their ideas, update their knowledge base, open up their eyes to the complexities of banking world.

During the year 2016, the training institute of the Bank has arranged a total of 38 training courses, seminars and workshops mostly

conducted by the internal resource persons with 182 participants. The objectives of designing all training programmes are to bridge the

gap between present level of competence and the required level of competence.

In terms of provision of BAS 10 "Events after Reporting period "no material events have occurred after balance sheet date which could

affect the values reported in the financial statements, except declaration of dividend, if any.

The BASEL Committee on Banking Supervision has published a new framework for calculating minimum capital requirement, known as

„Basel III‟. The new guideline is structured around three pillars: (i) minimum capital requirement (on credit risk, market risk and operation

risk), (ii) supervisory review process and (iii) market discipline. Implementation of Basel III framework in Bangladesh will integrate the risk

management process of the Bank and its capital adequacy requirement. Bangladesh Bank has formed a Committee and Coordination

Committee for implementation of BASEL III in Bangladesh. As per the Committee decision BASEL III has been fully implemented in

Bangladesh. The Committee has indicated that following methodology of BASEL III would be followed in Bangladesh:

Standardized method for credit and market risk.

50

2.26

2.27

2.28

2.29 Statement of compliance

i) Investment in shares and securities

ii) Revaluation gains/losses on Government securities

iii) Provision on loans and advances/investments

iv) Recognition of interest in suspense

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

fair value of held for trading assets is recognised through profit and loss account. Securities designated as Held to Maturity (HTM)

are measured at amortised cost method and interest income is recognised through the profit and loss account.

Bangladesh Bank: HFT securities are revalued on the basis of mark to market and at year end any gains on revaluation of

securities which have not matured as at the balance sheet date are recognised in other reserves as a part of equity and any losses on

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

HFT securities including amortisation of discount are recognised in the profit and loss account. HTM securities which have not

matured as at the balance sheet date are amortised at the year end and gains or losses on amortisation are recognised in other

reserve as a part of equity.

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

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

be performed on an individual or collective (portfolio) basis.

Bangladesh Bank: As per BRPD circular No.14 (23 September 2012), BRPD circular No. 19 (27 December 2012) and BRPD

circular No. 05 (29 May 2013) a general provision at 0.25% to 5% under different categories of unclassified loans (good/standard

loans) has to be maintained regardless of objective evidence of impairment. Also provision for sub-standard loans, doubtful loans

and bad losses has to be provided at 20%, 50% and 100% respectively for loans and advances depending on the duration of

overdue. Again as per BRPD circular no. 10 dated 18 September 2007 and BRPD circular no. 14 dated 23 September 2012, a

general provision at 1% is required to be provided for all off-balance sheet exposures. Such provision policies are not specifically in

line with those prescribed by BAS 39.

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

recognised through effective interest rate method over the term of the loan. Once a loan is impaired, interest income is recognised

in profit and loss account on the same basis based on revised carrying amount.

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

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

which is presented as liability in the balance sheet.

Figures relating to the previous year included in this report have been rearranged, wherever considered necessary, to make them

comparable with those of the current year for the purpose of comparison with current year's presentation, without any impact on.

Figures in these notes and in the annexed financial statements have been rounded off to the nearest Taka.

These notes form an integral part of the annexed financial statements and accordingly are to be read in conjunction therewith.

The financial statements of the Bank are prepared in accordance with Bangladesh Financial Reporting Standards (BFRS) and the

requirements of the Bank Companies Act 1991, the rules and regulations issued by Bangladesh Bank, the Companies Act 1994, [the

Securities and Exchange Rules 1987 ]. In case any requirement of the Bank Companies Act 1991, and provisions and circulars issued by

Bangladesh Bank differ with those of BFRS, the requirements of the Bank Companies Act 1991, and provisions and circulars issued by

Bangladesh Bank shall prevail. Material departures from the requirements of BFRS are as follows:

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

and loss account” or under “available for sale” where any change in the fair value (as measured in accordance with BFRS 13) at the

year-end is taken to profit and loss account or revaluation reserve respectively.

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

revalued at the year end at market price and as per book value of last audited balance sheet respectively. Provision should be made

for any loss arising from diminution in value of investment; otherwise investments are recognised at cost.

51

v) Other comprehensive income

vi) Financial instruments – presentation and disclosure

vii) Cash and cash equivalent

viii) Non-banking asset

ix) Cash flow statement

x) Balance with Bangladesh Bank: (Cash Reserve Requirement)

xi) Presentation of intangible asset

xii) Off-balance sheet items

xiii) Loans and advances/Investments net of provision

Bangladesh Bank: There is no regulation for intangible assets in BRPD 14.

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

sheet items on the face of the balance sheet.

Bangladesh Bank: As per BRPD 14, off balance sheet items (e.g. Letter of credit, Letter of guarantee etc.) must be disclosed

separately on the face of the balance sheet.

BFRS: Loans and advances/Investments should be presented net of provision.

Bangladesh Bank: As per BRPD 14, provision on loans and advances/investments are presented separately as liability and can not

be netted off against loans and advances.

Bangladesh Bank: As per BRPD 14, there must exist a face item named Non-banking asset.

BFRS: The Cash flow statement can be prepared using either the direct method or the indirect method. The presentation is

selected to present these cash flows in a manner that is most appropriate for the business or industry. The method selected is

applied consistently.

Bangladesh Bank: As per BRPD 14, cash flow is the mixture of direct and indirect methods.

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

BAS 7.

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

BFRS: An intangible asset must be identified and recognised, and the disclosure must be given as per BAS 38.

BFRS: As per BAS 1 Other Comprehensive Income (OCI) is a component of financial statements or the elements of OCI are to

be included in a single Other Comprehensive Income statement.

Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which will strictly be followed by all banks. The

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

Other Comprehensive Income allowed to be included in a single Other Comprehensive Income (OCI) Statement. As such the Bank

does not prepare the other comprehensive income statement. However, elements of OCI, if any, are shown in the statements of

changes in equity.

In several cases Bangladesh Bank guidelines categorise, recognise, measure and present financial instruments differently from those

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

statements.

BFRS: Cash and cash equivalent items should be reported as cash item as per BAS 7.

Bangladesh Bank: Some cash and cash equivalent items such as „money at call and on short notice‟, treasury bills, Bangladesh

Bank bills and prize bond are not shown as cash and cash equivalents. Money at call and on short notice presented on the face of

the balance sheet, and treasury bills, prize bonds are shown in investments.

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

52

2.30


1 BAS 1 Complied


3 BAS 7 Complied

4 BAS 8 Complied

5 BAS 10 Complied


7 BAS 12 Complied

8 BAS 16 Complied


10 BAS 18 Complied

11 BAS 19 Complied


13 BAS 21 Partially Complied

14 BAS 23 Complied

15 BAS 24 Complied





20 BAS 32 Complied



23 BAS 36 Complied

24 BAS 37 Complied


26 BAS 39 Complied
















2.31

2.31.1 Claim not acknowledged as debt

2.31.2 Number of employees

2.31.3 Post balance sheet events

There was no significant post balance sheet events occurred.

2.31.4 Coverage of external audit

Fair Value Measurement

General disclosure

There was no claim against the bank not acknowledged as debt as on 31 December 2016.

The number of Employees including contractual engaged for the whole year or part there of who received a total yearly remuneration of

Tk.36,000 or above were 111 ( 2015:112).

The external auditor of the Bank, M/s HOWLADAR YUNUS & CO. Chartered Accountants worked about in excess of 1,128 man

hour at Country Office, 5 Branches and 2 Off-shore Banking Units. During their audit, above 80% of the Bank's risk weighted assets were

reviewed as on the Balance Sheet date.

Financial Instruments: Disclosures

Operating Segments

Consolidated Financial Statements

Joint Arrangements

Disclosure of Interests in Other Entities

First-time Adoption of International Financial Reporting Standards

Share-based Payment

Business Combinations

Insurance Contracts

Non-current Assets Held for Sale and Discontinued Operations

Exploration for and Evaluation of Mineral Resources

Provisions, Contingent Liabilities and Contingent Assets

Intangible Assets

Financial Instruments: Recognition and Measurement

Investment Property

Agriculture

Bangladesh Financial Reporting Standard (BFRS)

Investments in Associates and Joint Ventures

Financial Reporting in Hyperinflationary Economies

Financial Instruments: Presentation

Earnings per Share

Interim Financial Reporting

Impairment of Assets

Accounting for Government Grants and Disclosure of Government

Assistance

The Effects of Changes in Foreign Exchange Rates

Borrowing Costs

Related Party Disclosures

Accounting and Reporting by Retirement Benefit Plans

Separate Financial Statements

Construction Contracts

Income Taxes

Property, Plant and Equipment

Leases

Revenue

Employee Benefits

Bangladesh Accounting Standards (BASs)

Presentation of Financial Statements

Inventories

Statement of Cash Flows

Accounting Policies, Changes in Accounting Estimates and Errors

Events after the Reporting Period

Compliance Status with BFRS and BAS

53

2016 2015

3 Cash

Cash in hand

Local currency 26,068,567 27,881,741


ATM cash balance 2,073,300 2,048,200

30,902,087 33,878,228

Balance with Bangladesh bank and its agent bank(s)

Local currency 1,687,111,662 478,163,869


2,330,599,574 503,422,473

Sonali Bank as agent of Bangladesh Bank (local currency) - -

2,361,501,660 537,300,701

3.1 a. Local currency


Free Balance with Bangladesh Bank 1,687,111,662 478,163,869

1,687,111,662 478,163,869

b. Foreign Currency


Free Balance with Bangladesh Bank 643,487,912 25,258,604

643,487,912 25,258,604

3.2 Statutory deposits

3.2.1 Cash Reserve Requirement (CRR)

i. Daily Bank's CRR maintenance



Surplus/ (deficit) 1,244,400,790 44,676,484

Maintained(%) 23.98% 6.64%

ii. Bi- Weekly bank's CRR maintenance

Required reserve (6.50% of total time & demand liabilities) 473,481,894 455,774,059


Surplus/ (deficit) 1,207,979,106 9,616,941

Maintained(%) 23.98% 6.64%

3.2.2 Statutory Liquidity Reserve (SLR)



Surplus/ (Deficit) 8,231,935,042 7,336,696,950

Maintained(%) 130.89% 117.6%

4

Inside Bangladesh (Note: 4.1 ) 11,811,434 28,755,594

Outside Bangladesh (Details are shown in annexure A) (Note: 4.2 ) 337,920,697 190,533,458

349,732,131 219,289,052

4.1

On demand deposit accounts ( Current cccount )

Uttara Bank 2,100,651 7,843,058

Sonali Bank 69,972 69,972

Pubali Bank 1,278,359.30 11,207

3,448,982 7,924,237

Amount in Taka

(Note: 3.1 )

Balance with other banks and financial institutions ( Inside Bangladesh )

The Cash Reserve Requirement (CRR) and the Statutory Liquidity Requirement (SLR) are maintained as per BRPD Circular No. 11 & 12 dated 25

August 2005, MPD circular No. 01 dated 23 June 2014 & MPD circular no. 02 dated 10 December 2013. Cash Reserve Requirement (CRR) and the

Statutory Liquidity Requirement (SLR) and deposits there against with Bangladesh Bank at 31 December 2016 are as follows:

Balance with other banks and financial institutions

54

2016 2015

Amount in Taka

On Short Term Deposit (STD) Accounts

Uttara Bank 6,049,000 9,559,303

Standard Chartered Bank-ATM Visa Domestic Settlement A/C 2,313,452 11,272,054

8,362,452 20,831,357

11,811,434 28,755,594

4.2

State Bank of India, West Germany(FF) 18,373,551 67,221,821

State Bank of India, London 1,055,926 733,534

State Bank of India, New York 136,367,986 24,860,865

State Bank of India, Japan 276,431 175,400

156,073,894 92,991,620

Standard Chartered Bank, Karachi Branch - -

Deutsche Bank, Mumbai - -

JP Morgan Chase Bank 139,488,934 67,701,901

ACU Dollar Nostro a/c 37,343,212 12,471,479

Wachovia Bank - -

Bank of America 2,608,551 8,542,418

Deutsche Bank Trust Company, New York 2,406,107 8,826,040

181,846,803 97,541,838

337,920,697 190,533,458

4.3 Foreign currency wise break-up

US Dollar 4,039,540 78.7750 318,214,789 122,402,704

Great Britain Pound 10,941 96.5131 1,055,926 733,534

EURO 223,205 82.3170 18,373,551 67,221,821

Japanese Yen 407,835 0.6778 276,431 175,400

337,920,697 190,533,458

5

Banking company

Jamuna Bank Limited 150,000,000 -

Dhaka Bank Limited - 350,000,000

Commercial Bank of Ceylon 60,000,000 -

Bank Asia Limited - 150,000,000

Mercantile Bank Limited 140,000,000 -

Brac Bank Limited 280,000,000 370,000,000

NCC Bank Limited 380,000,000 370,000,000

The City Bank Limited 370,000,000 370,000,000

Trust Bank Limited - 200,000,000

1,380,000,000 1,810,000,000

5.1 Maturity grouping of money at call and short notice

Up to 1 month 1,380,000,000 1,810,000,000

More than 1 month to 3 month - -

More than 3 month to 1 Year - -

More than 1 year to 5 years - -

More than 5 years - -

1,380,000,000 1,810,000,000

6

Government Securities 7,946,480,102 8,292,387,541


7,949,618,992 8,295,526,431


7,949,618,992 8,295,526,431

Investment in securities are classified as follows:

Held for trading - -

Held to maturity 7,946,422,302 8,292,387,541


7,949,561,192 8,295,526,431

Money at call and short notice

(Note: 6.1)

(Note: 6.2)

On demand deposit accounts ( Non interest bearing)

Balance with other banks and financial institutions ( Outside Bangladesh)

On demand deposit accounts ( Interest bearing)

Currency name Amount in FC

Investments

Conversion Rate

55

2016 2015

Amount in Taka

6.1

Treasury bill

30 day Treasury bills 1,306,810,150 2,024,452,570.00

91 day Treasury bills 349,938,902 1,376,871,362

182 day Treasury bills 737,309,920 199,866,747

364 day treasury bills 2,094,896,033 1,694,811,638

4,488,955,005 5,296,002,317

Treasury bond



10 year Treasury Bonds 1,148,041,541 1,502,675,099



3,457,467,297 2,995,470,924

Prize bonds 57,800 914,300

7,946,480,102 8,292,387,541

6.2 Other investments : Shares of Central Depository Bangladesh Limited (CDBL)

Quoted - -

Unquoted 3,138,890 3,138,890

3,138,890 3,138,890

Initial investment @ Tk.10 200,000 2,000,000 2,000,000

Purchase of Right share @ Tk.10 113,889 1,138,890 1,138,890

Bonus share @ Tk.10 828,472 - -

1,142,361 3,138,890 3,138,890

6.3

Payable on demand 57,800 914,300

Below three months 1,656,749,052 3,401,323,932

2,832,205,953 1,894,678,385

Over one year but below five years 979,671,970 520,278,471

Over five years 2,477,795,326 2,475,192,453

7,946,480,102 8,292,387,541

7

a. Loans, Cash Credits, Overdrafts etc.:

Overdrafts 635,887,914 664,427,598

Demand loans 708,345 661,560

- 1,000,000,000

Cash credit 1,550,943,809 1,569,206,923

House building loan 77,644,360 107,840,199

Transport loan 124,004,746 856,524,409

Term loans (Other) 585,873,492 73,769,963

Loan against trust receipts 46,645,604 -

Agricultural loan 101,836,065 100,000,000

Staff loans (Note - 7.6) 52,390,195 31,648,000

3,175,934,530 4,404,078,651

b. Bills purchase & discount (Note - 7.15) 1,723,815 5,373,762

Total: (a+b) 3,177,658,345 4,409,452,413

7.1 Net loans and advances

Gross loans and advances 3,177,658,345 4,409,452,413

Less:

Interest suspense 34,583,544 41,841,539

Provision for loans & advances 569,214,378 672,112,981

603,797,922 713,954,520

2,573,860,423 3,695,497,893

Over three months but below one year

Loans and advances

Government securities

No of SharesParticulars

Maturity wise grouping of investment (Other than CDBL Shares)

Treasury bills and treasury bonds amounting Tk.691.50 crore has been pledged with Bangladesh Bank for Capital Purpose. Details of investments are

given in Annexure- F)

Telecommunication

56

2016 2015

Amount in Taka

7.2

Repayable on demand 239,773,280 332,719,492

715,405,782 992,727,162

593,670,848 823,802,646

728,847,578 1,011,379,564

899,960,857 1,248,823,549

3,177,658,345 4,409,452,413

7.3

828,512,506 1,038,134,570

Cash Credits 1,653,488,218 2,669,868,483

Overdrafts & Demand Loan 695,657,621 669,801,360

3,177,658,345 4,377,804,413

- -

Cash credits - -

Overdrafts - -

3,177,658,345 4,377,804,413

7.4

Dhaka Division 2,261,856,025 3,306,460,018

Chittagong Division 792,271,307 957,667,250

Sylhet Division 99,140,201 113,568,008

Khulna Division 24,390,812 24,290,659

Rajshahi Division - 7,466,478

3,177,658,345 4,409,452,413

7.5

Staff

- -

Senior Executives 8,052,687 9,494,400

Others 44,337,508 22,153,600

52,390,195 31,648,000

i) Agricultural and Jute 101,836,065 127,268,584

ii) Readymade garments 116,112,346 160,909,489

iii) Textile 12,480,994 13,015,022

iv) Food & allied 80,122,689 -

v) Chemical - -

vi) Cement 50,633,612 82,337,049

vii) Rubber, Plastic, Printing Publishing & allied Industries - 16,128,781

viii) Metal Products & Steel - -

ix) Petroleum & Coal Products - -

x) IT based - 69,916,493

xi) Other 678,276,191 1,026,669,948

1,039,461,897 1,496,245,365

Infrastructural

i) Power 3,621,009 -

ii) Construction 223,802,231 120,870,813

iii) Transport 751,602,633 856,524,409

iv) Feed - -

v) Others 272,019,154 580,752,668

1,251,045,027 1,558,147,889

i) Commercial lending 10,725,229 -

ii) Export financing - -

iii) House building loan CL 77,644,360 107,840,199

iv) Small and medium enterprise 622,833,899 745,089,136

v) Non-banking financial institutions 77,314,536 -

vi) Others 46,243,202 470,481,823

834,761,226 1,323,411,158

3,177,658,345 4,409,452,413

0

More than 5 years

Industries

* Our 5 (Five) branches are located in urban areas . However, as we have obtained approval to open new branches in Bangladesh, we shall increase our

loans and advances portfolio in rural areas of the country as well.

Inside Bangladesh

More than 1 year to 5 years

Significant concentration wise grouping

Managing Director & CEO

More than 1 months to 3 months

Maturity wise grouping of loans and advances

More than 3 months to 1 Year

Loans and advances under the following broad categories

Geographical location wise portfolio grouping

Outside Bangladesh

Term Loans

Term Loans

Inside Bangladesh

Consumers

57

2016 2015

Amount in Taka

7.6 Staff loan

Overdraft Loan (Interest Bearing) 11,707,413 12,235,318

Overdraft Loan (Interest Free) 708,345

Car and motorcycle loan 61,948 1,858,500

House building Loan 39,912,489 17,554,182

52,390,195 31,648,000

7.7

7.8

Standard including staff loan 2,594,971,562 3,832,356,004

Special Mention Account (SMA) 13,803,410 5,630,000

2,608,774,972 3,837,986,004

Classified

Sub standard 45,622,692 5,952,388

Doubtful 79,827,100 -

Bad / Loss 443,433,581 565,514,021

568,883,373 571,466,409

3,177,658,345 4,409,452,413

7.9

Overdraft 695,657,621 669,801,360

Demand Loan 708,345 661,560

Term Loan 828,512,506 1,038,134,570

Cash Credit 1,600,389,678 2,669,206,923

Staff Loan 52,390,195 31,648,000

3,177,658,345 4,409,452,413

7.10 Sector-wise allocation of loans and advances

Agriculture, fishing, forestry and dairy firm 101,836,065 127,268,584

Industry (jute, textile, garments, chemicals, cements etc.) 937,625,832 1,368,976,781

Working capital financing 1,020,632,084 1,416,272,021

Export credit - -

Commercial credit 10,725,229 -

Small and cottage industries 622,833,899 745,089,136

Miscellaneous 484,005,237 751,845,891

3,177,658,345 4,409,452,413

7.11 Securities against loans/advances including bills purchase and discount

Collateral of moveable/immoveable assets 1,972,989,000.32 2,737,802,546.54

Nonbanking financial institutions guarantee 129,273,496.78 179,385,343.07

Local banks/foreign banks guarantee 262,474,579.28 364,220,769.32

Export documents 1,723,814.67 5,373,761.62

Cash and quisi cash 130,653,234.38 181,299,925.01

Personal guarantee 307,127,280.09 426,182,735.64

Other securities 373,416,939.25 515,187,331.84

3,177,658,345 4,409,452,413

Detail of large loan

Total capital of the Bank was Taka 7182.80 million for Domestic Banking Unit as at 31 December 2016 (Taka 7754.17 million at 31 December 2015

respectively ). Number of clients with amount outstanding and classification status to whom loans and advances sanctioned exceeds 10% of the total

capital of the Bank are shown in Annexure - B.

Grouping as per classification rules

Unclassified

Loan type wise total loan

58

2016 2015

Amount in Taka

7.12

Provision required for unclassified loans and advances

Outstanding Base for provision Rate (%) Required provision

December 2016

Required provision

December 2015

1,801,445,600 1,801,445,600 1% 18,014,456 30,335,311

551,326,157 551,326,157 0.25% 1,378,315 1,396,797

77,644,360 77,644,360 2% 1,552,887 1,996,100

10,650,158 10,650,158 5% 532,508 449,314

13,803,410 13,803,410 1% 138,034 56,300

101,836,065 101,836,065 2.5% 2,545,902 2,500,000

52,069,221 52,069,221 0% - -

2,608,774,972 2,608,774,972 N/A 24,162,102 36,733,822

Provision required for off-balance sheet items (General Provision)

Outstanding Rate (%) Required provision

December 2016

Required provision

December 2015

Acceptances and endorsements - 1% - -

Letter of guarantees 19,190,088,926 1% 191,900,889 195,959,434

Irrevocable letter of credits 1,735,179,160 1% 17,351,792 10,765,860

20,925,268,087 1% 209,252,681 206,725,295

Total required provision for unclassified assets (including off-balance sheet items) 233,414,783 243,459,117

Provision maintained for unclassified assets (including off-balance sheet items) 240,406,213 243,596,507

Excess/(Short) provision at 31 December 2016 6,991,430 137,391

Provision required for classified loans & advances (Specific provision)

Outstanding Base for provision Rate Required provision

December 2016

Required provision

December 2015

Sub-standard 45,622,692 21,238,045 20% 4,247,609 178,572

Doubtful 79,827,100 43,245,357 50% 21,622,678 -

Bad/Loss 443,433,581 283,148,800 100% 283,148,800 379,830,875

568,883,373 347,632,201 N/A 309,019,087 380,009,446

3,177,658,345

- 309,019,087 380,009,446

Total provision maintained for classified assets:

Sub Standard 4,247,609 178,572

Doubtful 21,622,678 -

Bad/loss 302,937,878 428,337,901 328,808,165 428,516,473

Excess/(Short) of provision 19,789,078 48,507,027

Consumer finance

Shortterm Agriculture

Loan

Special Mentioned

Account

Staff Loan

Total

Particulars of required provision for loans and advances

Small & Medium

enterprise financing

Status

Name of Exposure

Total

Housing & loan for

professional

All unclassified loans

(Other than Small &

Medium enterprise

Financing, Consumer

Financing,

BHs/MBs/SDs, Housing

& loans for professional)

Status

Total

59

2016 2015

Amount in Taka

7.13 Particulars of loans and advances

i) 2,383,243,759 3,307,089,310

ii) 737,086,579

iii) 263,235,406 365,276,525

iv) - -

3,177,658,345 4,409,452,413

v)

vi)

vii)

viii)

ix) Due from banking companies - -

x) - -

a) - 2,489,502

428,337,901

c) 34,583,544 41,841,539

xi)

- Current year - -

- Cumulative to date - -

7.14

Dhaka Region 349,445,900 247,399,886

Chittagong Region 769,080,325 685,390,107

Sylhet Region 44,665,425 31,413,654

1,163,191,650 964,203,647

7.15

1,723,815 5,373,762

- -

1,723,815 5,373,762

7.16

Payable within 1 month - -

Over 1 month but less than 3 months - -

Over 3 months but less than 6 months - -

6 months and more 1,723,815 5,373,762

1,723,815 5,373,762

7.17


Add: Write off during the year 426,294,149 291,094,160

871,447,761 447,643,114

Less: Recovery of Write off loans - 2,489,502

871,447,761 445,153,612

7.18 Cash Incentive for Good Borrower

Maturity wise grouping of bill purchased & discounted

Interest creditable to the Interest Suspense a/c

Outside Bangladesh

Debts considered good in respect of which Bank is fully secured

Debts adversely classified; for which no provision is created

Debts considered good for which Bank holds no other security than the debtor's

personal security

Debts considered good secured by the personal undertakings of one or more parties

in addition to the personal guarantee of the debtors

531,179,180

As per Bangladesh bank circular the bank has completed the formalities. During the year December 2016 Bank has not found any borrower who has

comply the Bangladesh Bank circulars to get "Cash Incentive for good borrower" due to non-compliance the sanction terms and condition.

Write off of loans & advances

Debts due by directors or officers of the banking company or any of these either

separately or jointly with any other persons-

-

Increase/decrease of provision (specific) amount of debts written off amount

realized against loan previously written off

- -

302,937,878

Cumulative amount of the written off loan and the amount written off during the

current year should be shown separately. The amount of written off loan for which

lawsuit has been field should also be mentioned

Maximum total amount of advances, including temporary advances granted during the

year to the companies or firms in which the directors of the banking company have

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

members

Debts due by companies or firms in which the directors or officers of the bank are

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

members

Maximum total amount of advances, including temporary advances made at any time

during the year to directors or managers or officers of the banking companies or any

of them either separately or jointly with any other person

- -

- -

-

Bill Purchased & discounted under the following

-

Amount of provision kept against loan classified as "bad/loss" on the date of

preparing the balance sheet

Amount of Classified loans on which interest has not been charged should be

mentioned as follows:

Inside Bangladesh

b)

Suit filled by the bank (branch wise)

The amount of written off loans for which law suit filed

60

2016 2015

Amount in Taka

8

A. Cost

Opening balance 201,291,720 174,558,316


221,419,399 206,973,747

Less: Disposal/adjustment during the year 1,102,984 5,682,027

220,316,415 201,291,720

B. Accumulated Depreciation

Opening balance 117,059,733 102,631,576

Add: Charged during the year 17,765,721 18,446,427

134,825,453 121,078,003

Less: Disposal/adjustment during the year 596,942 4,018,270

134,228,511 117,059,733

Written down value (A-B) 86,087,904 84,231,987

(Details are given in Annexure- C)

9

Interest receivable on treasury bond 108,917,749 119,459,995

Dividend receivable From CDBL 2,855,903 2,855,903

Interest receivable on Inter Bank Call Money 1,502,398 1,235,995

113,276,051 123,551,892

Stationery, stamps, printing materials etc. 1,406,319 1,961,110

Advance rent and advertisement 21,304,105 39,579,286

Memento Coin 52,500 154,000

Deferred Expenses - -

Excise duty 395,340 1,978,209

Inter Branch lending (FC) 630,200,000 368,877,836

Advance Payment of Income Tax 256,440,866 260,000,000

ISO Reconciliation 382,881 -

Receivables from OBU - -

910,182,010 672,550,441

1,023,458,061 796,102,333

10 Non-banking assets

11 Borrowings from other banks, financial institutions & agents - -

12

Local currency


Bills payable 32,474,493 24,428,492

Saving deposits 495,485,884 464,115,751

Fixed deposits 3,372,359,542 3,815,822,651


Other deposits 8,339,718 12,750,851

6,894,081,351 6,463,233,852

Foreign currency

Current & other accounts 389,949,036 172,036,523

Other deposits 648,120,503 362,934,831

1,038,069,540 534,971,353

7,932,150,891 6,998,205,206

No-non-banking assets is under the possession of the bank which acquired as claims. State Bank of India, Bangladesh Operation was not acquired any

such assets as on 31 December 2016.

Deposit and other accounts

Non-income generating other assets

Income generating other assets

Fixed assets including premises, furniture and fixtures

Other assets

Bank's actual interest receivable in investments is Tk. 150,432,099 in 2016 and Tk. 198,725,821 in 2015 but as per practice of SBI revaluation amount is

included in interest receivable. At the end of year the bank passed reversal entry between interest income receivables and increase Investment value. As

such,we have netted off amounting taka 40,011,951.31 from interest receivables and increase the investment amount to comply B.Bank instruction.

Domestic Banking Unit place surplus Dollar fund amounting to Tk. 630,200,000.00 in the year 2016 and 368,877,836.00 Tk. in the year 2015 without

borrowed the fund from abroad to fulfill the requirement of OBU and to reduce borrowing cost which may incurred if it would be borrowed from

abroad. DBU has not charged any interest as per the management deceision. Offshore Banking Unit(OBU) shows the figure as borrowing from Dhaka

Branch in note 9.1.

61

2016 2015

Amount in Taka

12.1 Deposit details concentrating liquidity nature

i) Demand deposit

Current deposit 2,035,423,626 1,506,590,646

Saving deposit (9%) 44,593,730 46,411,575

Foreign currency deposit 389,949,036 172,036,523


Other demand deposit-local currency 8,339,718 12,750,851

Other demand deposit-foreign currency 648,120,503 362,934,831

3,443,900,533 2,317,010,556

ii) Time deposit

Saving deposit (91%) 450,892,154 417,704,176

Fixed deposit 3,372,359,542 3,815,822,651

Foreign currency deposit - -


4,488,250,357 4,681,194,650

7,932,150,891 6,998,205,206

12.2 Maturity wise grouping of deposits

Payable on demand - -

Payable within 1 month 2,344,743,803 2,068,669,459

Over 1 month but within 3 months 1,448,410,753 1,277,872,271

Over 3 month but within 1 year 776,478,251 685,054,308

Over 1 year but within 5 years 1,077,979,306 951,056,087

Over 5 years 2,284,538,778 2,015,553,081

7,932,150,891 6,998,205,206

13

Foreign Currency claims received accounts - -

Fixed Deposit interest account 49,347,323 66,057,758

Provision on loans and advances (Note-13.1) 569,214,378 672,112,981

Interest Suspense's Account (Note-13.3) 34,583,544 41,841,539

Withhoding tax payable (payable on interest) (Note-13.4) 15,393 -

Provision for current taxation (Note-13.5) 501,396,271 517,482,674

Provision for deferred tax (Note-13.6) (5,293,975) (7,762,116)

Inter branch adjustment account 44,163 1,204,151

Excise Duty Payable Account 821,950 -

Short Term Deposit Interest Account 2,766,374

Provision for Interest Rebate on Good Borrowers -

Provision for gratuity - -

Provision for audit fees 345,000 388,125

Interest Payable on Call Money -

Other Provision 17,323,376 27,407,049

1,167,797,423 1,321,498,535

- 12

- -

- -

- -

- -

13.1

a. General (13.2)


Add: Provision made during the year (3,190,295) 38,526,652

240,406,213 243,596,507 -

b. Specific



Less: Recoveries and provision no longer required - -


- 328,808,165 428,516,473

Net actual provision at the end of year (a+b) 569,214,378 672,112,981 328,808,165

Other liabilities

Provision for loans and advances

Provision for loans and advances is created for covering the bank for possible loan losses in the future. General provision is made on outstanding loans

and advances without considering the quality of loans and advances according to the prescribed rate of Bangladesh Bank. Classified loans and advances

of the banks are categorized as sub-standard, doubtful and bad/loss as per guidelines of the Bangladesh Bank. Provisions are made for NPAs as per the

extant guidelines prescribed by Bangladesh Bank and RBI guideline which one is more stringent.

This represents outstanding inter-branch and head office transactions (net) which are originated but not responded by the counter transaction at the

balance sheet date. The unresponded entries of 31 December 2016 are given below:

Particulars

Amount of

unresponded

entries (Taka)

More than 6 months but within 1 year -

More than 1 year but within 5 years

Up to 3 months 44,163

More than 3 months but within 6 months -

-

Above 5 years -

Number of

unresponded

entries (Credit)

Number of

unresponded

entries (Debit)

Amount of

unresponded

entries (Taka)

-

-

-

-

-

62

2016 2015

Amount in Taka

13.2 General Provisions for UC Loans & Advance and off balance sheet items

a.


Add: Provision made/ (adjusted) during the year (5,717,681) 6,131,931

Sub-total 31,153,532 36,871,212

b.


Add: Provision made/ (adjusted) during the year 2,527,386 32,394,721

Sub-total 209,252,681 206,725,295

Total General Provision (a+b) 240,406,212 243,596,507

13.3 240,406,213 (0)

0


Add: Amount transferred during the year 32,096,303 -

73,937,842 98,673,668

Less: Amount of interest suspense recovered 5,650,809 6,043,381



34,583,544 41,841,539

13.4

Balance at the beginning of the year - 1,196,245


44,780,733 52,904,893

Less: paid during the year 44,765,341 52,904,893

15,393 -

13.5 Provision for current taxation



957,482,673 483,813,102

Less: Adjustment of tax provision for previous years - (62,424,557)

Less: Adjustment with adv tax 456,086,402 28,754,986

- -

Details are in Annexure-D 501,396,271 517,482,673

13.6 Deferred tax liability/ (Asset)

Opening balance (7,762,117) (8,946,097)

Add: Deffered Tax Expense/ (Income) during the year 2,468,142 1,183,981

(5,293,975) (7,762,117)

14

Securities lien with Bangladesh Bank 7,213,626,369 6,462,789,044

Transferred to IBG (Head Office) / Released from Capital (1,176,000,000) (316,378,395)

Funf Transferred from Surplus Profit & Loss Account 877,471,009 1,067,215,719

6,915,097,378 7,213,626,368

Bank has submitted Income Tax Return U/S 82 BB for the financial year 2014 to LTU on 14.07.2016. On 20.07.2016 tax authority asked for

explanation by claiming amounting to Tk. 5,92,66,885 within 27.07.2016. Bank has already given their explanation on 26.07.2016 vide letter no.

10/CO/IT/2138.

SBI maintained capital in the form of deposit and lien of securities with Bangladesh Bank under section 13(3) of the Bank Company Act, 1991 and

presented under the guidelines of BRPD circular No. 14 dated 25 June 2003. Details of securities lien with Bangladesh Bank is shown in Annexure-F.


Provision for Income Tax has been made according to the Income Tax Ordinance, 1984. During the year, an amount of Tk.38,50,00,000 has been

provided for current Income Tax.

Deferred tax is provided using the liability method for timing differences arising between the tax base of assets and liabilities and their carrying values

for reporting purposes as per Bangladesh Accounting Standard (BAS) - 12.

General Provision for Loans & Advance

General Provision for Off Balance Sheet Exposure

Withholding tax payable

Provision for off-balance sheet items is made as per BRPD circular No. 8 of 7 August 2007 and 18 September 2007 for covering the bank for possible

losses on off-balance sheet items in the future. Provision amount is included in the General Provision for standard assets. Details movement of

provision for Off-balance sheet items is as follows:

Interest suspense

Classified loans and advances of the banks are categorised as sub-standard, doubtful and bad/loss as per guidelines of the Bangladesh Bank. Interest

accrued on Sub-Standard (SS), doubtful and bad/loss loans is recorded as 'interest suspense' and not taken to income. This interest is recognized as

income as and when it is realized in cash by the bank.

63

2016 2015

Amount in Taka

14.1 Capital adequacy as per Basel - III

1. Tier-1 (Core capital) 7,188,096,829 7,631,095,167

2. Tier-2 (Supplementary capital) 260,412,188 321,138,075

7,448,509,017 7,952,233,242

14,735,382,200 10,576,628,590

50.55% 75.19%

D. Common EquityTier I i.e. @ 4.5% 48.78% 72.15%

48.78% 72.15%

F. Minimum Capital Requirement (MCR)

10 % of RWA 1,473,538,220 1,057,662,859

As per The Bank Company Act, 1991 4,000,000,000 4,000,000,000

Minimum Capital Required (higher one of above) 4,000,000,000 4,000,000,000

G. Surplus equity (A-F) 3,448,509,017 3,952,233,242

14.1.1 Tier - I (Core Capital)

6,915,097,378 7,213,626,369

272,999,451 417,468,797


- -

General reserve - -

Retained Earnings

Minority interest in subsidiaries - -

Share money deposit - -

- -

Dividend equalization accounts - -

Sub-total 7,188,096,829 7,631,095,167

Book value of Goodwill - -

- -

- -

- -

5,717,681 7,762,117

Investment in subsidiary - -

Other if any

Sub-total - -

Total eligible Tier - 1 Capital (a) 7,188,096,829 7,631,095,167

14.1.2 Tier - II (Supplementary Capital)

General Provision 240,406,213 282,123,160

Asset revaluation reserve 20,005,976 39,014,915

Preference Share - -

Perpetual Subordinated debt - -

Exchange Equalization Fund - -

Total eligible Tier - 2 Capital (b) 260,412,188 321,138,075

Total regulatory capital (a+b) 7,448,509,017 7,952,233,242

14.2

12,056,500,897 8,478,787,463

(i) On-balance sheet 6,667,937,332 7,692,977,275

(ii) Off-balance sheet 5,388,563,566 785,810,189

2. Market Risk 578,273,307 33,770,179

3. Operational risk 2,100,607,997 2,064,070,948

14,735,382,200 10,576,628,590

Regulatory capital

3. Total regulatory Capital (1+2)

B. Total Risk Weighted Assets (RWA)

(Note 14.1.1)

(Note 14.1.2)

(Note 14.2)

SBI Bangladesh's capital structure consists of Tier I and Tier II capital which is aligned with regulatory capital structure. Tier I capital is further

categorised as Common Equity Tier 1 (CET1) and Additional Tier 1 capital. The computation of the amount of Common Equity Tier I, Additional Tier

I and Tier II capital shall be subject to the following conditions:

- The Bank has to maintain at least 4.50% of total Risk Weighted Assets (RWA) as Common Equity Tier I capital.

- Tier I capital will be at least 5.50% of the total RWA.

- Minimum Capital to Risk-weighted Asset Ratio (CRAR) will be 10% of the total RWA.

- Additional Tier I capital can be maximum up to 1.5% of the total RWA or 33.33% of CET 1, whichever is higher.

- Tier II capital can be maximum up to 4% of the total RWA or 88.89% of CET1, whichever is higher.

- In addition to minimum CRAR, Capital Conservation Buffer (CCB) @ 0.625% of the total RWA will be maintained in the form of CET1 in a phased

manner from 2016 to 2019.

E. Tier I i.e. @ 5.5%

Tier I capital of the Bank includes funds deposited with Bangladesh Bank, actuarial gain/(loss) and retained earnings. Tier 1 capital is also called „Core

Capital‟ of the Bank. According to BRPD letter ref no.BRPD (BFIS)661/14B(P)/2015-18014 dated 24 December 2015, 5% of deferred tax recognised

on specific provision shall be allowable as CET 1 capital whilst all other deferred tax assets created on other items shall be deducted from the retained

earnings when calculating the capital adequacy ratio.

Tier II capital consists of general provision and revaluation reserve for Held to Maturity (HTM) and Held for Trading (HFT) securities. General

provision for inclusion in Tier II capital is limited to a maximum 1.25% of Credit RWA calculated under the standardised approach. Revaluation reserve

for securities shown as Tier II capital as on 31 December 2014 will be nullified in a phased manner at the rate of 20% starting from 2015 and will be

fully adjusted by 2019.

C. Total (including Tier II) required is 10%

1. Investment (credit) Risk

Shortfall in provision required against classified assets irrespective of any relaxation allowed


Any increase in equity capital resulting from a securitization transaction

Deficit on account of revaluation of investment in AFS category

Deferred tax assets

Non-repayable share premium account

Non-cumulative irredeemable preference shares

Amount deductable from CET 1 Capital ( Regulatory Adjustments)

Surplus in profit & loss accounts/Retained earnings

Risk Weighted Assets (RWA)

64

2016 2015

Amount in Taka

15 Surplus in profit and loss account/ retained earnings


Add: Net Profit for the year 327,319,684 648,810,282

Add: Net Profit received from Off-share Banking Unit (OBU) 268,129,819 443,219,220

Add: Excess Profit Received from OBU 62,424,557

Add: Excess Revaluation Reserve Transfer to Profit & Loss Account 14,477,979 -

Less Prior Year Adjustment(Deferred Tax)

877,471,009 1,067,215,719

272,999,451 540,542,977

16 Other reserve


Add: Amotization gain on HTM securities during the year 40,011,951 78,029,831

118,041,782 120,253,578

Less: Transferred to Profit & Loss Account at maturity 78,029,831 42,223,747

40,011,951 78,029,831


40,011,951 78,029,831

17 Contingent liabilities


Import Letters Of Credit - Sight 1,735,179,160 1,076,586,029

Import Letters Of Credit - Usance

Import Letters Of Credit - Back to Back - -

Letter of Guarantee (Note 17.1) 19,190,088,926 19,595,943,443

20,925,268,087 20,672,529,472


Letter of Guarantee (Local) - -

Letter of Guarantee (Foreign) 19,190,088,926.27 19,595,943,442.57

Foreign counter Guarantee - -

19,190,088,926 19,595,943,443

Less: Margin 1,153,266 103,656,684

19,188,935,660 19,492,286,758

Balance for which the Bank is contingently liable in respect of guarantee issued favoring

Directors - -

Government - -

Bank and other financial institution 19,190,088,926 19,595,943,443

Others - -

19,190,088,926 19,595,943,443

Less : Margin 1,153,266 103,656,684

19,188,935,660 19,492,286,758

17.2 Irrevocable letter of credit

Letter of Credit (Inland) 1,735,179,160 1,076,586,029

Letter of Credit (General)

Back to Back L/C - -

1,735,179,160 1,076,586,029

Less: Margin 574,479,607 402,340,557

1,160,699,554 674,245,472

17.3 Suit filed against the bank

No law suit filed against the bank for which Bank's are contingent liabilities.

Previous years figures has been re-arragned to conform the prescribed formate of Bangladesh Bank.

Bank guarantee no. 05112FG000371 dated: 06.06.2012 for USD 3.8 mio has expired on 07.03.2013 in favor Powercell. Before maturity Powercell

applied for invocking the guarantee. But Lanco Infratech Ltd (Beneficiarry) obtained stay order from Hon'ble Supreme Court untill the matter is finally

heared by the Hon'ble Court. The bank has Foreign Counter Guarantee from SBI, Kolkatta as security.

Less: Amount transferred to deposit kept with Bangladesh Bank for Capital and SLR

Purpose

65

2016 2015

18 Income statement

Income

Interest, discount and similar income (Note-18.1) 478,834,514 577,454,142

Fees, commission and brokerage (Note-18.2) 771,784,183 693,665,877

Gains less losses arising from investment securities 477,860,493 538,532,052

Income from non-banking assets - -

(Note-22) 2,296,317 1,026,391

Profit less losses on interest rate changes - -

1,730,775,508 1,810,678,463

Expenses

Interest, fees and commission (Note-19) 291,321,596 374,919,235

(Note-18.3) 199,369,154 200,406,755

162,242,211 124,091,718

(Note-28) 18,362,663 18,446,427

671,295,624 717,864,136

Operating profit 1,059,479,883 1,092,814,327

1,116,038,605

18.1 Interest, discount and similar income (56,558,722)

Interest on loans and advances (Note 18.1.1) 351,039,203 372,739,441

Interest on money at call and short notice 127,795,311 204,714,701

Interest on balance with other banks - -

Interest on treasury bills & bonds - -

Interest on fixed deposits with other banks - -

Interest on other sundry income - -

478,834,514 577,454,142

18.1.1 Interest on loans and advances

Cash Credits 167,928,371 140,253,889

Overdrafts 43,125,097 93,040,309

Demand Loan 1,276,841 12,685,005

Term Loan 138,708,894 126,760,239

351,039,203 372,739,441

18.2 Fees, commission and brokerage

Fees - -

Commission 771,784,183 693,665,877

771,784,183 693,665,877

18.3 Administrative expenses

Salaries and allowances 103,999,435 107,747,840

73,009,418 72,071,327

Legal expenses 1,461,468 2,835,445

7,805,467 4,233,627

8,899,903 8,719,552



Auditors' fee 300,000 345,000

Repairs & maintenance of fixed assets 3,893,462 4,453,964

199,369,154 200,406,755

Amount in Taka

Other operating income

Administrative expenses

Other operating expenses

Depreciation on banking assets




66

19 Interest paid on deposits and borrowing etc.

Interest on deposits

Recurring Deposit 16,826,835 16,205,492

Short Term Deposit (STD) 13,926,091 6,328,741

Savings 15,769,189 17,205,701

Term 183,875,986 277,346,554

230,398,100 317,086,487

60,923,496 57,832,748

Interest on local bank accounts - -

291,321,596 374,919,235

20 Investment income

Interest on treasury bonds 477,860,493.34 365,421,339

Interest (discount) on treasury bills 170,254,810

Dividend income 2,855,903

477,860,493 538,532,052

21

Commission for Guarantees 89,762,855 122,808,169

Commission for LC negotiation/amendment/advising 39,500,082 22,236,571

Commission for inward & outward remittances 8,885,123 7,849,480

Commission on Visa Processing 560,620,145 475,469,359

Commission for miscellaneous 11,732,258 13,955,388

Foreign exchange earnings 61,283,720 51,346,910

771,784,183 693,665,877


Miscellaneous Income 2,296,317 1,026,391

2,296,317 1,026,391

23

Basic Salary(B.S+H.R+CON) 77,383,568 84,631,917

Salary Casual Staff 18,652,560 15,901,702

Salary Leave Encash & Allowances 3,529,590 3,364,481

Provident Fund 4,433,718 3,849,740

103,999,435 107,747,840


Rent, rates & taxes 55,514,055 55,200,379

Insurance 7,709,938 7,877,753

Power & electricity 9,785,425 8,993,195

73,009,418 72,071,327


Postage & courier 5,082,592 949,930

Telephone-Office 2,548,539 3,196,174

Telephone-Residence 174,337 87,523

7,805,467 4,233,627


Stationery & Printing 8,470,903 8,612,062

Advertisement Statutory 429,000 107,490

Advertisement Public RelationAdvertisement Statutory - -

8,899,903 8,719,552

27 Auditors' fee

Audiit Fee(Statutory Audit) 300,000 345,000

Others (Credit Rating, Finacle Migration & Others) - -

300,000 345,000

Interest on money at call and short notice

Commission, exchange and brokerage


67

28 Depreciation on and repairs to bank's assets

A. Depreciation of property plant and equipments

Furniture & fixtures 3,401,076 3,511,154

Office equipments 4,784,936 5,369,596

IT hardware 10,176,651 9,565,678

18,362,663 18,446,427

B. Repairs & maintenance expenses

Transport Maintenance

Equipment Maintenance 2,168,296 4,453,964

Hardware & Software Maintenance 1,725,166 -

Premises Maintenance 3,893,462 4,453,964

22,256,125 22,900,391

29 Other expenses

Water Consumption 1,360,023 1,622,170

Traveling expenses 1,618,433 3,085,726

Halting allowance 440,372 580,782

House up keep IB officers 47,230 37,680

Medical expenses 2,769,965 2,636,821

Computer expenses (including mantainance) 26,280,085 16,861,335

Petrol, Oil and Lubricants 2,192,510 1,966,979

Security 13,031,106 11,970,939

Membership subscription 425,288 565,783

Entertainment: canteen & other 8,809,672 10,597,212

News paper/Books 1,946,780 1,697,358

Conveyance Allowance - 10,632,345

Finacle Expenses 57,805,976 20,116,357

Children Education 884,510 643,085

Clearing Expenses 1,006,484 1,099,876

Other Allowances 3,680,747 4,379,800

Office Mantainance 8,028,520 6,402,829

Charges Donation 1,136,390 2,170,650

Rentals Car/ Transportation Exp. 7,492,796 6,090,522

Training 1,960,736 1,559,979

Charges Others 21,324,590 19,373,491

162,242,211 124,091,718

30

a) Provision on loans & advances

Provision made/ (adjusted) during the year for STD account (5,717,681) 6,131,931

Specific Provision made during the year 292,882,351 22,048,839

Recoveries/Provision no longer required (2,755,427)

287,164,671 25,425,343

287,164,671 25,425,343

Provision on LC & BG 2,527,386 32,394,721

Less: Recoveries/Provision no longer required - -

2,527,386 32,394,721

2,527,386 32,394,721

Grand Total (a+b) 289,692,057 57,820,064

31 Related party/(ies) transactions

Balance at year

end

NIL

Provisions

NIL NIL NIL

b) Provision for Off Balance Sheet

Previous year provision for off balance sheet items was included with provision for loans & advances and shown in the

profit and loss account grossly. Now we have rearranged the figures and shown separately to confirm the current year's

presentation.

i) The bank had no transactions with related parties in the normal course of business an on arm length basis. As on 31

December 2016, the bank had following transactions with the 'Related Party/(ies)' as defined in the BRPD Circulars No.

14 issued by the Bangladesh Bank on 25 June 2003.

Name of the Related Parties Relationship Transaction Nature

68

32

1,643,773.26 (637,366.00)

40,415.16 -

612,128.44 -

2,296,316.86 (637,366.00)

33

(73,009,418.49) (72,071,327)

(1,461,468.00) (2,835,445)

(7,805,467.49) (4,233,627)

(8,899,902.59) (8,719,552)

(300,000.00) (345,000)

-

(22,256,125) (22,900,391)

(162,242,211) (100,007,346)

(275,974,592.85) (211,112,688)

34

Cash 2,361,501,660 537,300,701

Balance with other banks and financial institutions 349,732,131 219,289,052

Money at call and short notice 1,380,000,000 1,810,000,000

Prize bonds 57,800 914,300

4,091,291,592 2,567,504,053


SWIFT Charges

Interest Income from Local Banks

Service & Other Charges from Vostro Account



Depreciation on and repairs to bank's assets

Other expenses

Cash and cash-equivalents items Breakup


Legal expenses



Auditors' fee

69

USD Taka USD Taka

PROPERTY AND ASSETS

Cash - - - -

Cash in hand (including foreign currency) 3 - - - -

- - - -

Balance with other banks and financial institutions 6,648,684 523,750,047 1,860,046 145,967,125

In Bangladesh - - - - Outside Bangladesh 4 6,648,684 523,750,047 1,860,046 145,967,125

Money at call on short notice - - - -

Investments - - - - Government - - - - Others - - - - Outside Bangladesh - - - -

Loans and advances 118,803,750 9,358,765,387 73,825,338 5,793,443,380

Loans, cash credits, overdrafts, etc. 5 15,000,000 1,181,625,000 4,617,296 362,342,267

Bills purchased and discounted 6 103,803,750 8,177,140,387 69,208,042 5,431,101,113

Fixed assets including premises, furniture & fixtures 7 - - - -

Other assets 8 2,312,330 182,153,834 2,040,415 160,121,601 Non banking assets - -

Total assets 127,764,764 10,064,669,268 77,725,799 6,099,532,106

LIABILITIES AND CAPITAL

Liabilities

Borrowing from other banks, financial institutions & agents 122,465,908 9,647,251,882 72,995,578 5,728,327,960

In Bangladesh 8,000,000 630,200,000 4,700,578 368,877,836

Outside Bangladesh 9 114,465,908 9,017,051,882 68,295,000 5,359,450,124

Deposits and other accounts 10 303,524 23,910,116 534,828 41,970,630

Current deposits and other accounts 303,524 23,910,116 534,828 41,970,630

Bills payable - - - -

Savings bank deposits - - - -

Term deposits - - - -

Other liabilities 11 1,402,980 110,519,707 778,639 61,103,697

Total liabilities 124,172,412 9,781,681,705 74,309,045 5,831,402,287

Capital / equity

Paid up capital - - - -

Statutory reserve - - - -

Other reserve - - - -

Surplus in profit and loss account 12 3,592,352 282,987,563 3,416,755 268,129,819

Total equity 3,592,352 282,987,563 3,416,755 268,129,819

Total liabilities and equity 127,764,764 10,064,669,268 77,725,799 6,099,532,106

(1) (0)





HOWLADAR YUNUS & CO.Chartered Accountants

State Bank of India

Off-shore Banking Unit

Balance SheetAs at December 31, 2016

Balance with Bangladesh Bank and its Agents Bank (including

foreign currency)

Notes2016 2015


70

USD Taka USD Taka

Off Balance Sheet Items

Contingent liabilities 13 - - - -

Acceptances and endorsements - - - -

Letter of guarantee - - - -

Irrevocable letters of credit - - 133,449 10,432,345

Bills for collection -- - - - -

- - 133,449 10,432,345

Other Commitments:

Documents credit and short term trade -related transactions - - - -

Forward assets purchased and forward deposits placed - - - -

- - - -

- - - -

- - - -

- - 133,449 10,432,345

Country Head

Notes

2016 2015

Undrawn formal standby facilities, credit lines and

Undrawn note issuance and revolving underwriting facilities



HOWLADAR YUNUS & CO




71

USD Taka USD Taka

Operating income

Interest income 14 4,962,594 390,928,320 4,271,342 335,193,537

Less: Interest paid on deposits, borrowings, etc. 15 (1,182,833) (93,177,702) (876,833) (68,809,486)

Net interest income 3,779,760 297,750,618 3,394,508 266,384,051

Income from investment - - - -

Commission, exchange and brokerage 16 323,323 25,469,769 115,932 9,097,775

Other operating income 17 (5,099) (401,693) 22,364 1,755,042

Total operating income 4,097,984 322,818,694 3,532,805 277,236,868

Salaries and allowances 18 46,947 3,698,244 - -

Rent, taxes, insurance, lighting and traveling 19 6,051 476,671 - -

Legal expenses - - - -

Postage, stamp, telegram and telephone 20 - - - -

Auditors' fee 21 - - - -

Stationery, printing and advertisement 22 - - - -

Charges on loan loss - - - -

Managing director's salary - - - -

Directors' meeting fee - - - -

Repair, maintenance and depreciation of assets - - - -

Other expenses 23 2,850 224,473 2,300 180,503

Total operating expenses 55,848 4,399,388 2,300 180,503

Profit before provision 4,042,137 318,419,306 3,530,505 277,056,364

24 449,784 35,431,743 113,750 8,926,545

Profit before taxation 3,592,352 282,987,563 3,416,755 268,129,819

Provision for taxation - - - -

Current tax - -

Deferred tax - - - -

Profit after taxation 3,592,352 282,987,563 3,416,755 268,129,819

Retained earnings 3,592,352 282,987,563 3,416,755 268,129,819

Country Head






HOWLADAR YUNUS & CO


State Bank of India

Off-shore Banking Unit

Provision for loans & advance, other assets & off Balance Sheet

items



Notes2016 2015

72

USD Taka USD Taka

CASH FLOWS FROM OPERATING ACTIVITIES:

Interest received in cash 4,680,550 368,710,346 4,224,612 331,526,438

Interest payments (1,362,744) (107,350,194) (876,593) (68,790,675)

Dividend received - - - -

Fees and commission received in cash 323,323 25,469,769 115,932 9,097,775

Recovery of loans and advances in cash previously written-off - - - -

Cash paid to employees - - - -

Income tax paid - - (2,193,072) (172,101,311)

Cash received from other operating activities (5,099) (401,693) 22,364 1,755,042

Cash paid for other operating activities (2,850) (224,473) (2,300) (180,503)

Cash flows before charges in operating assets and liabilities 3,633,180 286,203,755 1,290,943 101,306,766 - -

Increase / Decrease in operating assets and liabilities:

Loans and advances to customers (44,978,412) (3,543,174,405) (11,508,465) (921,821,833)

Other assets - - (1,538,870) (120,762,765)

Deposits from other Banks 49,470,330 3,897,025,248 12,587,818 1,005,951,322

Deposit from customers (231,304) (18,220,962) (239,590) (18,801,857)

Other liabilities 295,454 23,516,247 (1,029,456) (80,786,570)

4,556,068 359,146,128 (1,728,563) (136,221,702) - -

Net cash from operating activities 8,189,248 645,349,884 (437,620) (34,914,936) - -

CASH FLOWS FROM INVESTING ACTIVITIES - - - -

Proceeds from sale of securities - - - -

Cash payments for purchase of securities - - - -

Purchase/ sale of property, plant & equipment of fixed assets - - - -

Sales of fixed assets - - - -

Net cash from investing activities - - - - - -

CASH FLOWS FROM FINANCING ACTIVITIES - - - -

Loan paid - - - -

Transferred to Domestic Banking Unit (3,416,754.62) (268,129,818.81) - -

Net cash from financing activities (3,416,755) (268,129,819) - -

Net increase/(decrease) in cash and cash equivalent 4,772,493 377,220,065 (437,620) (34,914,936)

Effects of exchange rate changes on cash & cash equivalent - 562,857 - -

Opening cash and cash equivalent 1,876,190 145,967,125 2,313,810 180,882,061

Closing cash and cash equivalent 6,648,684 523,750,047 1,876,190 145,967,125

Country Head

Off-shore Banking UnitBangladesh Operation

State Bank of India

2016 2015

Cash Flow Statement


HOWLADAR YUNUS & CO





73

1.1 Status of the units

1.1.1 Principal activities

2 Summary of significant accounting policies & basis of preparation

2.1

a) Basis of accounting

b) Use of estimates and judgments

c) Foreign currency transaction

d) Cash flow statement


These financial statements cover one calendar year from 01 January to 31 December 2016.

Cash flow statement has been prepared in accordance with the Bangladesh Accounting Standard - 7 - "Cash flow statement" under direct

method as recommended in the BRPD Circular No. 14, dated June 25, 2003 issued by the Banking Regulation & Policy Department of

Bangladesh Bank.

The principal activities of the units are to provide all kinds of commercial banking services to its customers through its off-shore Banking units

in Bangladesh.

A summary of the principle accounting policies which have been applied consistently (Unless otherwise stated), is set out below:

The Off-shore Banking Units maintain its accounting records in USD from which accounts are prepared according to the Bank Companies Act

1991, Bangladesh Accounting Standards and other applicable directives issued by Bangladesh Bank.

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of

accounting policies and the reported amounts of assets, liabilities, income and expenses, Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which

the estimate is revised and in any future periods affected.

Foreign currency transactions are converted into equivalent Taka using the ruling exchange rates on the dates of respective transactions as per

BAS -21" The Effects of Changes in Foreign Exchange Rates". Foreign currency balances held in US Dollar are coverted into Taka at weighted

average rate of intern-bank market as determined by Bangladesh Bank on the closing date of every month. Balances held in foreign currencies

other than US Dollar are converted into equivalent US Dollar at buying rates of New York closing of the previous day and converted into Taka

equivalent.

Commitments for outstanding forward foreign exchange contracts disclosed in the financials are translated at contracted rates. Contingent

liabilities/ commitments for letter of credit and letter of guarantee denominated in foreign currencies are expressed in Taka terms at the rates of

exchange ruling on the balance date.

The resulting exchange transaction gains and losses are included in the profit and loss acount, except those arising on the transaction of net

investment in foreign subsidiary.

Off-shore Banking Units of State Bank of India, Bangladesh Operation,governed under the rules and guidelines of Bangladesh Bank. The bank

commenced the operation of its Off-shore banking Unit from 2010 after obtaining necessary approval from Bangladesh Bank.

State Bank of India

Bangladesh OperationOff-shore Banking Unit

Notes to the Financial Statements


74

2.3 Cash and cash equivalents

2.4 Loans and advances / investment

a)

b)

2.5 Provision for liabilities

2.6

2.6.1 Interest income

2.6.2 Interest paid and other expenses

2.7 General

a)

b) Assests and liabilities & income and expenses have been converted into Taka currency @ US $ 1 = Taka 78.775 (Closing mid rate as at 31st

December 2016).

For the purpose of presentation in the Cash flow statements, cash and cash equivalents includes Cash in Hand and Cash at Bank , highly liquid

interest bearing investment/Securities with original maturities of less than three month.

Cash flow statement is prepared in accordance with BAS 7 titled " Cash Flow Statements". Cash flows form operating activities have been

presented at "Direct Method' .

Loans and advances of Off-shore Banking Units are stated in the balance sheet on gross basis.

Interest is calculated on a daily product basis but charged and accounted for on accrual basis. Interest is not charged on bad and

loss loans as per guidelines of Bangladesh Bank. Records of such interest amounts are kept in separate memorandum accounts.

A provision is recognised in the balance sheet when the unit has a legal or constructive obligation as a result of a past event and it is probable

that an outflow of economic benefit will be required to settle the obligations, in accordance with the BAS 37 " Provisions, Contingent Liablities

and Contingent Assets".

Revenue & expense recognition

In terms of the provisions of the BAS - 18 "Revenue", the interest income is recognized on accrual basis.

In terms of the provisions of the BAS- 1 "Presentation of Financial Statements" interest and other expenses are recognized on accural basis.

These financial statements are presented both in USD and BDT, which is the Bank's functional currency. Figures appearing in these financial

statements have been rounded off to the nearest Taka.

75

USD Taka USD Taka

3 Cash in hand

In Local Currency - - - -

Foreign Currency Account - - - -

- - - -

4 Balance with other banks and financial institutions

In Bangladesh (Note -4.1) - - - -

Outside Bangladesh (Note -4.2) 6,648,684 523,750,047 1,860,046 145,967,125

6,648,684 523,750,047 1,860,046 145,967,125

4.1 In Bangladesh:

Sonali / Rupali/CBC

- - - -

4.2 Outside Bangladesh

Current Account 6,648,684 523,750,047 1,860,046 145,967,125

6,648,684 523,750,047 1,860,046 145,967,125

5 Loans and advances

i) Loans, cash credits, overdrafts, etc

Term loan 15,000,000 1,181,625,000 - -

Cash Credit - -

Over draft - - 4,617,296 362,342,267

15,000,000 1,181,625,000 4,617,296 362,342,267

ii) Bills purchased and discounted (note-6)

Inside Bangladesh

Inland bills purchased and discounted 103,803,750 8,177,140,387 69,208,042 5,431,101,113

Outside Bangladesh

Foreign bills purchased and discounted - - - -

103,803,750 8,177,140,387 69,208,042 5,431,101,113

118,803,750 9,358,765,387 73,825,338 5,793,443,380

5.1 Geographical location-wise loans and advances

Dhaka 60,294,932 4,749,733,298 36,484,634 2,863,131,645

Chittagong 58,508,817 4,609,032,089 37,340,704 2,930,311,735

Sylhet - - - -

Rajshahi - - - -

Khulna - - - -

Barisal - - - -

118,803,750 9,358,765,387 73,825,338 5,793,443,380

5.2 Classification of loans and advances

Unclassified

(i) Standard 118,803,750 9,358,765,387 73,825,338 5,793,443,380

(ii) Special mention account - - - -

Classified

(i) Substandard - - - -

(ii) Doubtful - - - -

(iii) Bad / loss - - - -

118,803,750 9,358,765,387 73,825,338 5,793,443,380

6 Bills purchased and discounted

In Bangladesh 103,803,750 8,177,140,387 69,208,042 5,431,101,113

Outside Bangladesh - - - -

103,803,750 8,177,140,387 69,208,042 5,431,101,113

7 Fixed assets including premises, furniture and fixtures

Furniture and fixtures - - - -

Office equipment and machinery - - - -

- - - -

8 Other assets

Inter Branch Account - - 10,128 794,826

Receivables from DBU(i) - - - -

Interest income receivable on loans & advance 2,312,330 182,153,834 2,030,287 159,326,775

Exchange Fluctuation of receivables from DBU - - - -

2,312,330 182,153,834 2,040,415 160,121,601

2016 2015

76

USD Taka USD Taka

2016 2015

9 122,465,908 9,647,251,882 72,995,578 5,728,327,960

122,465,908 9,647,251,882 72,995,578 5,728,327,960

9.1

Dhaka Branch 8,000,000 630,200,000 4,700,578 368,877,836

State Bank of India, Hongkong 114,465,908 9,017,051,882 68,295,000 5,359,450,124

122,465,908 9,647,251,882 72,995,578 5,728,327,960

10 Deposits and other accounts

Current deposits and other accounts (note- 10.1) 303,524 23,910,116 534,828 41,970,630

Savings deposits account (note- 10.2) - - - -

303,524 23,910,116 534,828 41,970,630

10.1 Current deposits and other accounts

Inter Branch a/c - - - -

Bangladesh Bank - - - -

303,524 23,910,116 534,828 41,970,630

303,524 23,910,116 534,828 41,970,630

10.2 Savings deposits account

Deposits from banks - - - -

Deposits from customers - - - -

- - - -

11 Other liabilities

Interest payable on inter branch borrowings 214,942 16,932,054 35,031 2,749,052

Citi Bank N.A. New York - - - -

Provision on loans and advances(note-11.1) 1,188,038 93,587,653 738,253 57,934,434

Provision for Current Taxation (iv) - - - -

Stamp account - - 5,355 420,211

Payable to DBU - - - -

1,402,980 110,519,707 892,389 70,217,593

11.1 Provision for loans and advances

Provision for bad and doubtful debts (i) - - - -

Provision on unclassified loans(ii) 1,188,038 93,587,653 738,253 57,934,434

1,188,038 93,587,653 852,004 67,048,330

i) Fresh provision on loans & advance made during the year

On classified loans & advances as per BBK circular (ii) - - - -

On unclassified loans & advances(iii) 449,785 35,653,219 113,750 8,926,545

449,785 35,653,219 113,750 8,926,545

ii)

Provision held at the beginning of the year - - - -

Less: Fully provided debt written off - - - -

Add: Recoveries of amount previously written off - - - -

Add: Specific provision for the year - - - -

Less: Recoveries and provision no longer required - - - -

Add: Net charge to profit & loss A/C - - - -

Provision held at the end of the year - - - -

iii)

Provision held at the beginning of the year 738,253 57,934,434 624,503 48,820,538

Adjustment - - 187,351

Add: Additional provision for the year 449,785 35,653,219 113,750 8,926,545

Less: Provision written back - - - -

Provision held at the end of the year 1,188,038 93,587,653 738,253 57,934,434 738,253 57,934,434

iv) Breakup of unclassified loans & advances 449,785 35,653,219

General provision for loans & advances - - - -

General provision for Off- Balance Sheet item - - - -

v) Provision for Current Taxation (iv)

Opening Balance - - 2,193,072 171,443,389

Add: Additional provision for the year - - - -

Add: Exchange Flucktuation - - - -

Less: Payment made during the year - - (2,193,072) (171,443,389)

- - - -

12 Surplus in profit and loss account

Opening balance 3,416,755 268,129,819 4,095,236 320,145,040

Add: Exchange Fluctuation - - - -

Add: Net profit for the year 3,592,352 282,987,563 3,416,755 268,129,819

Less: Transferred to retained earning (DBU) (3,416,755) (268,129,819) (4,095,236) (320,145,040)

3,592,352 282,987,563 3,416,755 268,129,819

Other Current A/C

Borrowings disclosed in the following manner:

Off-shore banking unit

The movement in general provision on unclassified loans:

The movement in specific provision for bad and doubtful

debts:

77

USD Taka USD Taka

2016 2015

13 Contingent liabilities - - - -

13.1 Acceptance & endorsement

Back to back bills - - - -

Less: Margin - - - -

- - - -

13.2 Irrevocable letter of credits

Letter of credits - - - -

Back to back letter of credit - - - -

- - - -

Less: Margin - -

- - - -


Letter of guarantee (Local) - - - -

Letter of guarantee (Foreign) - - - -

Foreign counter guarantees - - - -

- - - -

Less: Margin

- - - -

13.4 Bills for collection

Outward local bills for collection - - - -

Inward foreign bills for collection - - - -

- - - -

Less: Margin

- - - -

14 Interest income

Overdraft 121,724 9,588,821 1,919,544 150,636,181

LTR loan - - - -

Bills discount 4,749,093 374,109,794 2,013,524 158,011,281

Others 91,777 7,229,705 338,274 26,546,075

Interest on loans and advances 4,962,594 390,928,320 4,271,342 335,193,537

Interest on balance with other banks and financial institutions - - - -

Interest received from foreign banks - - - -

- - - -

Total interest income 4,962,594 390,928,320 4,271,342 335,193,537

15 Interest paid on deposits, borrowings, etc.

Interest paid on Inter Branch Borrowings 1,182,833 93,177,702 876,833 68,809,486

Interest paid on Bangladesh Bank - - - -

1,182,833 93,177,702 876,833 68,809,486

16 Commission / fees

Commission for handling 156,944 12,363,241 4,688 367,901

Commission for LC negotiation/amendment/advising 1,342 105,716 2,625 205,958

Commission for foreign bill negotiation - - - -

Commission for outward remittances 5,443 428,794 1,898 148,979

Commission acceptance on bills 1,492 117,493 20,213 1,586,243

Commission for inward remittance 3,818 300,763 923 72,432

Commission for miscellaneous 154,285 12,153,761 85,585 6,716,262

323,323 25,469,769 115,932 9,097,775


Swift 40 3,151 1,160 91,031

Exchange Gain/(Loss) (5,495) (432,870) 21,168 1,661,185

Postage & courier 356 28,027 36 2,825

(5,099) (401,693) 22,364 1,755,042

18

Basic Salary 46,454 3,659,384 -

Other Allowances 283 22,322 -

Provident Fund 210 16,538 -

46,947 3,698,244 - -


Rent, rates & taxes 6,051 476,671 -

6,051 476,671 - -


Postage & courier - -

- - - -


78

USD Taka USD Taka

2016 2015


Stationery & Printing - -

- - - -

22 Auditors' fee

Audiit Fee(Statutory Audit) - -

- - - -

23 Other expenses

Account maintenance charge - -

Others 2,850 224,473 2,300 180,503

2,850 224,473 2,300 180,503

24 Provision for loan :

Provision against classified loan - - - -

Provision against unclassified loan 449,784 35,431,743 113,750 8,926,545

Balance at the end of the year 449,784 35,431,743 113,750 8,926,545

79

Annexure - A

Standard Chartered Bank, Karachi Branch USD CD - 78.7750 0.00 - 78.4750 0.00

Deutsche Bank, Mumbai USD CD - 78.7750 0.00 - 78.4750 0.00

JP Morgan Chase Bank USD CD 1,770,725.92 78.7750 139,488,934.35 862,719.35 78.4750 67,701,900.99

ACU Dollar Nostro a/c USD CD 474,049.02 78.7750 37,343,211.55 158,922.96 78.4750 12,471,479

Bank of America USD CD 33,113.94 78.7750 2,608,550.62 108,855.28 78.4750 8,542,418

Deutsche Bank Trust Company, New York USD CD 30,544.04 78.7750 2,406,106.75 112,469.45 78.4750 8,826,040

State Bank of India, West Germany (FF) EURO CD 223,204.82 82.3170 18,373,551.17 783,668.39 85.7784 67,221,821

State Bank of India, London GBP CD 10,940.75 96.5131 1,055,925.70 6,304.74 116.3463 733,534

State Bank of India, New York USD CD 1,731,107.41 78.7750 136,367,986.22 316,799.81 78.1750 24,860,865

State Bank of India, Japan JYEN CD 407,835.00 0.6778 276,430.56 268,072.00 0.6543 175,400

Total 4,681,521 N/A 337,920,697 2,617,812 N/A 190,533,458



2015

Balance with other bank and financial institutions (Outside Bangladesh on Demand Deposit Accounts )

2016

Name of BankA/C

Type

Currency

Type Exchange Rate Equivalent Taka

FC Amount Exchange

Rate Equivalent TakaFC Amount

80

Annexure -C

Balance as of 1

Janaury 2016

Addition during

the year

Adjustment

/disposal

during the yearBalance as of 31

December 2015

Balance as of 1

Janaury 2015

Charged for the

year

Adjustment/disp

osal during the

year

Balance as of 31

December 2015

Furniture & fixture 71,032,920 3,823,948 355,294 74,501,574 10 37780319.52 3,222,237 178,839 40,823,718 33,677,856

Office Appliances 42,091,162 2,433,375 402,843 44,121,693 25 24297768.73 4,496,629 288,307 28,506,091 15,615,602

Computer 88,167,638 13,870,356 344,846 101,693,148 25 54981644.34 10,046,855 129,797 64,898,703 36,794,445

As on 31 December 2015 201,291,720 20,127,679 1,102,984 220,316,415 117,059,733 17,765,721 596,942 134,228,511 86,087,904

As on 31 December 2015 174,558,316 32,415,431 5,682,027 201,291,720 102,631,576 18,446,427 4,018,270 117,059,733 84,231,987

Note: During the year 2015 Rajshahi branch has debit Fixed Assets Computer instead of Office Equipment. As such amounting taka 1,33,266 is included in Office equipment addition amounting taka 7,340,729.


Schedule of Fixed Assets


(Figures in Taka)

Particulars

COST

Rate

%

DEPRECIATION

Written down

value of 31

December 2015

81

Annexure-D

(Figures in Taka)

Accounting

Year

Assessment

YearTax provision

Tax as per

assessment

Advance Tax as

per assessment

order Present Status

2001 2002-2003 48,938,000 48,938,000 48,938,000 Completed

2002 2003-2004 52,406,268 52,406,268 52,406,268 Completed

2003 2004-2005 45,952,000 45,952,000 45,952,000 Completed

2004 2005-2006 107,900,000 107,900,000 107,900,000 Completed

2005 2006-2007 120,406,589 120,406,224 120,406,589 Completed

2006 2007-2008 136,773,803 136,773,803 136,773,803 Completed

2007 2008-2009 190,945,069 190,945,069 190,945,069 Completed

2008 2009-2010 226,964,018 226,964,018 226,964,018 Completed

2009 2010-2011 210,000,000 204,599,250 203,338,070 Completed

2010 2011-2012 330,000,000 325,930,336 325,296,807 Completed

2011 2012-2013 510,000,000 495,223,988 499,747,443 Completed

2012 2013-2014 586,000,000 - - Completed

2013 2014-2015 465,000,000 465,242,552 459,999,999 Completed

2014 2015-2016 517,482,673 488,309,032 488,309,032 Submitted & Completed U/S 82BB

2015 2016-2017 455,847,986 456,086,402 456,086,402 Submitted & Completed U/S 82BB

Statement of Tax position



State Bank of India

82

Annexure-E

No of

entry

Amount

in F.CAmount in US$

No of

entry

Amount in

F.CAmount in US$

No of

entryAmount in F.C

Amount in

US$

No of

entryAmount in F.C Amount in US$

1 State Bank of India, London GBP 2016 1

2 State Bank of India, New York USD 2016 2 2 400.12 400.12 1 713 713 - 6 81,068.50 81,068.50

3 State Bank of India, Frankfurt EURO 2016 3 2 21,139.13 23,106.48 1 9,045.00 9,045.00 1 25,370.12 27,983.24

4

Deutsche Bank Trust Com.

America, USA USD2016 4 - 2 34,523.64 34,523.64

5 State Bank of India, Tokyo USD 2016 5

6 Bank of America USD 2016 6 - 4 17,475.89 17,475.89

7 JP Morgan Chase bank, USA USD 2016 7 - 7 8,720.00 8,720.00 2 33,656.12 33,656.12 10 121,540.80 121,540.80

8 State Bank of India, Kolkata USD 2016 8 - 1 25.55 25.55 3 66,343.26 66,343.26

4 23,506.60 9 9,458.55 6 109,044.38 23 279,978.95 282,592.07

STATE BANK OF INDIA (Bangladesh Operations)

Unreconciled Entries and amount in Local & Nostro Account

Postion as on December 31, 2016

Name of the Bank

Cu

rren

cy

Year

No

te R

ef. Local Book Foreign book

Local Debits Local Credits Nostro's Debits Nostro's Credits

83

Annexure- F

ISIN NumberPurchase

Date

Face Value (Scrip

currency)Maturity Date Purchase Cost Tenor

Yield/coup

on RatePresent Value

Amortization

Gain / Loss* Market Value Portfolio

Type of

Security Holding Number Deal No

Purpose of

Security

BD0930121209 29-Sep-10 120,000,000.00 29-Sep-30 120,435,096.00 20 9.25% 120,298,938.65 - 120,298,938.65 HTM T Bond 8200557 10674582 CapitalBD0930121209 29-Sep-10 120,000,000.00 29-Sep-30 120,326,091.00 20 9.25% 120,224,045.28 - 120,224,045.28 HTM T Bond 8200558 10674607 CapitalBD0930121209 29-Sep-10 100,000,000.00 29-Sep-30 100,181,034.00 20 9.25% 100,124,381.88 - 100,124,381.88 HTM T Bond 8200559 10674618 CapitalBD0930161205 27-Oct-10 200,000,000.00 27-Oct-30 200,000,000.00 20 9.25% 200,000,000.00 - 200,000,000.00 HTM T Bond 8200569 10688013 CapitalBD0930201209 24-Nov-10 350,000,000.00 24-Nov-30 354,728,850.00 20 9.45% 353,285,272.24 - 353,285,272.24 HTM T Bond 8200587 10702569 CapitalBD0932081203 29-Aug-12 4,100,000.00 29-Aug-32 4,100,000.00 20 12.16% 4,100,000.00 - 4,100,000.00 HTM T Bond 8201318 11324916 CapitalBD0932121207 26-Sep-12 1,900,000.00 26-Sep-32 1,900,000.00 20 12.16% 1,900,000.00 - 1,900,000.00 HTM T Bond 8201321 11355870 CapitalBD0932161203 25-Oct-12 1,200,000.00 25-Oct-32 1,198,214.73 20 12.16% 1,198,214.73 228.44 1,198,443.17 HTM T Bond 8200939 11913787 CapitalBD0932201207 28-Nov-12 600,000.00 28-Nov-32 598,219.19 20 12.18% 598,219.19 5,517.14 603,736.33 HTM T Bond 8200959 11913809 SLRBD0932241203 26-Dec-12 1,200,000.00 26-Dec-32 1,200,000.00 20 12.28% 1,200,000.00 - 1,200,000.00 HTM T Bond 8200972 11459416 SLRBD0933361208 27-Mar-13 900,000.00 27-Mar-33 898,032.33 20 12.51% 898,032.33 526.27 898,558.60 HTM T Bond 8201325 11572017 CapitalBD0933481204 26-Jun-13 1,300,000.00 26-Jun-33 1,293,384.56 20 12.48% 1,293,384.56 1,093.92 1,294,478.48 HTM T Bond 8201118 11920197 CapitalBD0933121206 25-Sep-13 1,200,000.00 25-Sep-33 1,193,893.44 20 12.48% 1,193,893.44 809.09 1,194,702.53 HTM T Bond 8201198 11825360 CapitalBD0933241202 26-Dec-13 1,300,000.00 26-Dec-33 1,294,273.27 20 12.33% 1,294,273.27 167.70 1,294,440.97 HTM T Bond 8201220 11920666 SLRBD0934161201 29-Oct-14 1,500,000.00 29-Oct-34 1,494,369.00 20 12.03% 1,494,369.00 264.18 1,494,633.18 HTM T Bond 8201349 11959874 CapitalBD0934201205 26-Nov-14 700,000.00 26-Nov-34 695,802.80 20 12.06% 695,802.80 313.10 696,115.90 HTM T Bond 8201374 11970377 CapitalBD0934201205 24-Dec-14 1,400,000.00 26-Nov-34 1,390,251.80 20 12.07% 1,390,251.80 363.10 1,390,614.90 HTM T Bond 8201391 11980587 Capital

BD0925141154 13-Oct-10 150,000,000.00 13-Oct-25 150,614,400.00 15 8.95% 150,359,624.17 - 150,359,624.17 HTM T Bond 8200564 10681299 CapitalBD0925141154 13-Oct-10 150,000,000.00 13-Oct-25 150,491,250.00 15 8.95% 150,287,541.29 - 150,287,541.29 HTM T Bond 8200565 10681304 CapitalBD0925141154 13-Oct-10 100,000,000.00 13-Oct-25 100,245,500.00 15 8.95% 100,143,697.49 - 100,143,697.49 HTM T Bond 8200566 10681315 CapitalBD0927111155 19-Sep-12 4,400,000.00 19-Sep-27 4,400,000.00 15 11.88% 4,400,000.00 - 4,400,000.00 HTM T Bond 8200901 11349245 CapitalBD0927151151 17-Oct-12 1,100,000.00 17-Oct-27 1,097,723.93 15 11.93% 1,097,723.93 2,036.54 1,099,760.47 HTM T Bond 8200929 11913775 CapitalBD0927231151 19-Dec-12 1,000,000.00 19-Dec-27 1,001,371.00 15 12.08% 1,001,002.10 - 1,001,002.10 HTM T Bond 8200968 11452316 SLRBD0928271156 16-Jan-13 900,000.00 16-Jan-28 900,000.00 15 11.05% 900,000.00 - 900,000.00 HTM T Bond 8200988 11484227 SLRBD0928351156 20-Mar-13 500,000.00 20-Mar-28 499,662.94 15 12.38% 499,662.94 3,982.52 503,645.46 HTM T Bond 8201039 11919378 CapitalBD0928471152 19-Jun-13 2,600,000.00 19-Jun-28 2,589,522.57 15 12.40% 2,589,522.57 1,927.25 2,591,449.82 HTM T Bond 8201115 11919388 CapitalBD0928041153 24-Jul-13 1,000,000.00 24-Jul-28 995,301.07 15 12.40% 995,301.07 363.66 995,664.73 HTM T Bond 8201155 11920205 SLRBD0928121153 25-Sep-13 2,400,000.00 25-Sep-28 2,391,944.69 15 12.42% 2,391,944.69 281.15 2,392,225.84 HTM T Bond 8201197 11920645 CapitalBD0928161159 23-Oct-13 1,400,000.00 23-Oct-28 1,393,428.42 15 12.42% 1,393,428.42 262.07 1,393,690.49 HTM T Bond 8201208 11913827 SLRBD0929201152 26-Nov-14 900,000.00 26-Nov-29 898,091.10 15 11.50% 898,091.10 195.12 898,286.22 HTM T Bond 8201373 11970366 CapitalBD0929201152 24-Dec-14 1,600,000.00 26-Nov-29 1,588,417.60 15 11.57% 1,588,417.60 416.92 1,588,834.52 HTM T Bond 8201392 11980593 Capital

BD0920131101 6-Oct-10 150,000,000.00 6-Oct-20 150,000,000.00 10 8.85% 150,000,000.00 - 150,000,000.00 HTM T Bond 8200561 10677514 CapitalBD0920171107 3-Nov-10 350,000,000.00 3-Nov-20 351,145,550.00 10 8.90% 350,439,655.38 - 350,439,655.38 HTM T Bond 8200576 10692079 CapitalBD0920171107 3-Nov-10 350,000,000.00 3-Nov-20 350,915,950.00 10 8.90% 350,351,536.25 - 350,351,536.25 HTM T Bond 8200577 10692088 CapitalBD0921411106 4-May-11 200,000,000.00 4-May-21 200,000,000.00 10 9.45% 200,000,000.00 - 200,000,000.00 HTM T Bond 8200645 10797589 CapitalBD0922061108 22-Aug-12 7,500,000.00 22-Aug-22 7,500,000.00 10 11.75% 7,500,000.00 - 7,500,000.00 HTM T Bond 8201329 11317890 CapitalBD0922101102 12-Sep-12 10,000,000.00 12-Sep-22 10,000,000.00 10 11.75% 10,000,000.00 - 10,000,000.00 HTM T Bond 8201320 11342693 CapitalBD0922141108 10-Oct-12 8,200,000.00 10-Oct-22 8,200,000.00 10 11.80% 8,200,000.00 - 8,200,000.00 HTM T Bond 8201323 11372508 CapitalBD0922181104 14-Nov-12 9,700,000.00 14-Nov-22 9,677,557.43 10 11.75% 9,677,557.43 4,293.30 9,681,850.73 HTM T Bond 8200949 11913800 SLRBD0922221108 12-Dec-12 11,000,000.00 12-Dec-22 10,993,643.00 10 11.80% 10,993,643.00 6,331.26 10,999,974.26 HTM T Bond 8200963 11913820 SLRBD0923261103 9-Jan-13 6,000,000.00 9-Jan-23 6,000,000.00 10 9.95% 6,000,000.00 - 6,000,000.00 HTM T Bond 8201330 11476459 SLRBD0923301107 13-Feb-13 4,900,000.00 13-Feb-23 4,900,000.00 10 12.00% 4,900,000.00 - 4,900,000.00 HTM T Bond 8201324 11517254 Capital

State Bank of India, Bangladesh Operations

Investment Schedule

As on 31.12.2016

84

BD0923381109 10-Apr-13 6,700,000.00 10-Apr-23 6,677,094.44 10 12.10% 6,677,094.44 6,067.42 6,683,161.86 HTM T Bond 8201053 11919383 CapitalBD0923241103 15-May-13 7,200,000.00 13-Mar-23 7,160,565.60 10 12.19% 7,160,565.60 4,526.46 7,165,092.06 HTM T Bond 8201084 11919385 SLRBD0923341103 12-Jun-13 7,500,000.00 13-Mar-23 7,458,735.00 10 12.10% 7,458,735.00 4,184.32 7,462,919.32 HTM T Bond 8201107 11919386 SLRBD0923031100 17-Jul-13 4,000,000.00 17-Jul-23 3,993,187.34 10 12.22% 3,993,187.34 4,233.46 3,997,420.80 HTM T Bond 8201144 11920204 SLR

BD0923031100 21-Aug-13 3,700,000.00 17-Jul-23 3,684,360.77 10 12.22% 3,684,360.77 5,990.24 3,690,351.01 HTM T Bond 8201178 11920636 SLRBD0923031100 18-Sep-13 4,700,000.00 17-Jul-23 4,682,234.00 10 12.22% 4,682,234.00 1,209.06 4,683,443.06 HTM T Bond 8201191 11920641 SLRBD0923031100 13-Oct-13 3,400,000.00 17-Jul-23 3,387,035.80 10 12.28% 3,387,035.80 5,771.28 3,392,807.08 HTM T Bond 8201205 11920660 CapitalBD0923191102 18-Dec-13 2,900,000.00 20-Nov-23 2,892,750.00 10 12.16% 2,892,750.00 579.64 2,893,329.64 HTM T Bond 8201218 11913831 SLR

BD0917051056 8-Aug-12 11,600,000.00 8-Aug-17 11,600,000.00 5 11.50% 11,600,000.00 - 11,600,000.00 HTM T Bond 8201319 11305133 CapitalBD0917091052 5-Sep-12 10,900,000.00 5-Sep-17 10,900,000.00 5 11.55% 10,900,000.00 - 10,900,000.00 HTM T Bond 8201317 11334136 CapitalBD0917131056 3-Oct-12 8,000,000.00 3-Oct-17 8,000,000.00 5 11.55% 8,000,000.00 - 8,000,000.00 HTM T Bond 8201322 11364401 CapitalBD0917171052 7-Nov-12 4,800,000.00 7-Nov-17 4,796,426.64 5 11.52% 4,796,426.64 3,299.65 4,799,726.29 HTM T Bond 8200945 11913790 CapitalBD0917211056 5-Dec-12 8,400,000.00 5-Dec-17 8,409,386.78 5 11.52% 8,401,737.53 - 8,401,737.53 HTM T Bond 8200962 11435816 SLRBD0918251051 2-Jan-13 9,400,000.00 2-Jan-18 9,406,984.51 5 11.38% 9,401,399.96 - 9,401,399.96 HTM T Bond 8200976 11466875 SLRBD0918291057 6-Feb-13 9,100,000.00 6-Feb-18 9,106,745.54 5 11.72% 9,101,481.36 - 9,101,481.36 HTM T Bond 8201008 11509886 CapitalBD0918331051 6-Mar-13 8,500,000.00 6-Mar-18 8,500,000.00 5 11.82% 8,500,000.00 - 8,500,000.00 HTM T Bond 8201021 11545686 CapitalBD0918411051 8-May-13 4,800,000.00 8-May-18 4,791,115.20 5 11.70% 4,791,115.20 3,024.11 4,794,139.31 HTM T Bond 8201326 11626428 SLRBD0918021058 10-Jul-13 5,500,000.00 10-Jul-18 5,493,896.16 5 11.75% 5,493,896.16 2,111.01 5,496,007.17 HTM T Bond 8201132 11920201 CapitalBD0918061054 14-Aug-13 5,800,000.00 14-Aug-18 5,793,567.81 5 11.78% 5,793,567.81 1,586.25 5,795,154.06 HTM T Bond 8201171 11920635 SLRBD0918101058 11-Sep-13 7,800,000.00 11-Sep-18 7,785,589.86 5 11.78% 7,785,589.86 3,325.28 7,788,915.14 HTM T Bond 8201189 11920638 SLRBD0918141054 9-Oct-13 7,200,000.00 9-Oct-18 7,184,041.78 5 11.78% 7,184,041.78 3,458.78 7,187,500.56 HTM T Bond 8201200 11920660 SLR

BD0919141053 15-Oct-14 2,500,000.00 15-Oct-19 2,502,927.50 5 9.59% 2,501,630.49 - 2,501,630.49 HTM T Bond 8201341 11955577 CapitalBD0919181059 12-Nov-14 2,300,000.00 12-Nov-19 2,297,315.90 5 9.66% 2,297,315.90 628.55 2,297,944.45 HTM T Bond 8201359 11965060 CapitalBD0920141050 14-Oct-15 105,800,000.00 14-Oct-20 105,800,000.00 5 7.35% 105,800,000.00 - 105,800,000.00 HTM T Bond 8201501 12086200 Capital

BD0917331029 4-Mar-15 700,000.00 4-Mar-17 699,495.30 2 8.54% 699,495.30 147.53 699,642.83 HTM T Bond 8201415 12006107 CapitalBD0917451058 1-Feb-16 100,000,000.00 6-Jun-17 108,475,200.00 2 4.85% 102,827,349.46 - 102,827,349.46 HTM T Bond 8201563 12119244 CapitalBD0917451058 28-Feb-16 250,000,000.00 6-Jun-17 270,149,250.00 2 4.82% 257,060,830.08 - 257,060,830.08 HTM T Bond 8201578 12127158 CapitalBD0917011050 31-Jan-16 200,000,000.00 4-Jul-17 217,605,800.00 2 5.00% 206,549,273.71 - 206,549,273.71 HTM T Bond 8201559 12118869 CapitalBD0918011026 13-Jul-16 200,000,000.00 13-Jul-18 200,221,802.00 2 6.48% 200,169,237.96 - 200,169,237.96 HTM T Bond 8201641 12171007 Capital

BD0936451170 20-Jun-16 150,000,000.00 19-Jun-17 142,618,350.00 364 5.19% 142,618,350.00 3,934,176.10 146,552,526.10 HTM T Bill 8201628 12163277 SLRBD0936451170 20-Jun-16 140,000,000.00 19-Jun-17 133,060,060.00 364 5.23% 133,060,060.00 3,698,759.23 136,758,819.23 HTM T.Bill 8201629 12163278 CapitalBD0936451170 20-Jun-16 150,000,000.00 19-Jun-17 142,550,850.00 364 5.24% 142,550,850.00 3,970,151.37 146,521,001.37 HTM T.Bill 8201630 12163279 SLRBD0936451170 20-Jun-16 100,000,000.00 19-Jun-17 94,988,900.00 364 5.29% 94,988,900.00 2,670,751.10 97,659,651.10 HTM T.Bill 8201631 12163280 CapitalBD0936414178 17-Oct-16 130,000,000.00 16-Oct-17 125,085,090.00 364 3.94% 125,085,090.00 1,012,687.50 126,097,777.50 HTM T.Bill 8201670 12201210 SLRBD0936414178 17-Oct-16 150,000,000.00 16-Oct-17 144,273,600.00 364 3.98% 144,273,600.00 1,179,890.11 145,453,490.11 HTM T.Bill 8201671 12201212 CapitalBD0936414178 17-Oct-16 200,000,000.00 16-Oct-17 192,254,200.00 364 4.04% 192,254,200.00 1,595,975.27 193,850,175.27 HTM T.Bill 8201672 12201213 CapitalBD0936416173 31-Oct-16 250,000,000.00 30-Oct-17 240,779,500.00 364 3.84% 240,779,500.00 1,545,193.68 242,324,693.68 HTM T.Bill 8201675 12206093 CapitalBD0936416173 31-Oct-16 150,000,000.00 30-Oct-17 144,412,200.00 364 3.88% 144,412,200.00 936,417.03 145,348,617.03 HTM T.Bill 8201676 12206094 CapitalBD0936422171 12-Dec-16 200,000,000.00 11-Dec-17 192,768,800.00 364 3.76% 192,768,800.00 377,452.75 193,146,252.75 HTM T.Bill 8201688 12220371 CapitalBD0936422171 12-Dec-16 200,000,000.00 11-Dec-17 192,768,800.00 364 3.76% 192,768,800.00 377,452.75 193,146,252.75 HTM T.Bill 8201689 12220374 CapitalBD0936422171 12-Dec-16 140,000,000.00 11-Dec-17 134,938,160.00 364 3.76% 134,938,160.00 264,216.92 135,202,376.92 HTM T.Bill 8201690 12220377 CapitalBD0936424177 26-Dec-16 200,000,000.00 25-Dec-17 192,734,600.00 364 3.78% 192,734,600.00 99,799.45 192,834,399.45 HTM T.Bill 8201694 12224914 Capital

BD0918201171 11-Jul-16 120,000,000.00 9-Jan-17 116,916,000.00 182 5.29% 116,916,000.00 2,931,494.51 119,847,494.51 HTM T.Bill 8201638 12169979 SLRBD0918201171 11-Jul-16 120,000,000.00 9-Jan-17 116,887,560.00 182 5.34% 116,887,560.00 2,958,528.13 119,846,088.13 HTM T.Bill 8201639 12169981 SLRBD0918202179 18-Jul-16 200,000,000.00 16-Jan-17 194,803,200.00 182 5.35% 194,803,200.00 4,739,938.46 199,543,138.46 HTM T.Bill 8201642 12172562 CapitalBD0918202179 18-Jul-16 200,000,000.00 16-Jan-17 194,718,200.00 182 5.44% 194,718,200.00 4,817,465.93 199,535,665.93 HTM T.Bill 8201643 12172566 CapitalBD0918223175 19-Dec-16 100,000,000.00 19-Jun-17 98,434,300.00 182 3.19% 98,434,300.00 103,232.97 98,537,532.97 HTM T.Bill 8201691 12222790 Capital

85

BD0909112171 3-Oct-16 200,000,000.00 2-Jan-17 198,422,000.00 91 3.19% 198,422,000.00 1,543,318.68 199,965,318.68 HTM T.Bill 8201665 12196718 CapitalBD0909112171 3-Oct-16 150,000,000.00 2-Jan-17 148,798,050.00 91 3.24% 148,798,050.00 1,175,533.52 149,973,583.52 HTM T.Bill 8201666 12196720 SLR

BD0303096160 1-Dec-16 150,000,000.00 31-Dec-16 149,634,750.00 30 2.97% 149,634,750.00 - 149,634,750.00 HTM BB Bill 12217139 CapitalBD0403009170 19-Dec-16 270,000,000.00 18-Jan-17 269,342,550.00 30 2.97% 269,342,550.00 - 269,342,550.00 HTM BB Bill 8201692 12222792 CapitalBD0403010178 20-Dec-16 250,000,000.00 19-Jan-17 249,391,250.00 30 2.97% 249,391,250.00 - 249,391,250.00 HTM BB Bill 8201693 12223356 CapitalBD0403014170 27-Dec-16 215,000,000.00 26-Jan-17 214,476,475.00 30 2.97% 214,476,475.00 - 214,476,475.00 HTM BB Bill 8201695 12225245 CapitalBD0403014170 27-Dec-16 125,000,000.00 26-Jan-17 124,695,625.00 30 2.97% 124,695,625.00 - 124,695,625.00 HTM BB Bill 8201696 12225244 SLRBD0403015177 28-Dec-16 300,000,000.00 27-Jan-17 299,269,500.00 30 2.97% 299,269,500.00 - 299,269,500.00 HTM BB Bill 8201697 12225766 Capital

14-Dec-05 2,000,000.00 31-Dec-20 2,000,000.00 2,000,000.00 - 2,000,000.00 8201327 10063368

14-Oct-10 1,138,890.00 14-Oct-20 1,138,890.00 1,138,890.00 - 1,138,890.00 8201328 11911852

Total 7,998,738,890.00 7,942,983,793.80 7,909,549,240.75 40,011,951.23 7,949,561,191.98

############ ############ ############

86

Annexure-G

(Figures in Taka)

SL. Particulars 2016 2015

1 Paid-up capital/Fund deposit with Bangladesh Bank 6,915,097,378 7,213,626,369

2 Capital surplus/(deficit) 3,813,295,881 4,332,957,488

3 Total assets 25,762,526,362 22,251,435,023

4 Total deposits 7,956,061,008 7,040,175,836

Total Borrowings 9,017,051,882 5,728,327,960

5 Total loans & advances 12,536,423,732 10,202,895,793

6 Total contingent liabilities & commitments 20,925,268,087 20,672,529,472

7 Credit deposit ratio (Loans & advances/Deposits including obu) 73.86% 79.91%

8 Percentage of classified loans against total loans & advances 4.54% 5.60%

9 Profit after tax & provisions 610,307,247 916,940,101

10 Amount of classified loans during the current year 568,883,373 571,466,409

11 Provision kept against classified loans 328,808,165 428,516,473

12 Provisions surplus/(deficit) 26,780,506 48,644,416

13 Provision Coverage Ration(%) 57.80% 74.99%

14 Cost of fund 2.00% 2.74%

15 Interest earning other assets 113,276,051 123,551,892

16 Non-Interest earning other assets 279,982,010 672,550,441

17 Return on Investment (ROI) [Int. Income from Investment/Total

Investment]

6.01% 6.49%

18 Return on assets (ROA) [PAT/Average assets] 3.74% 5.68%

19 Return on Equity (ROE) [PAT/Average shareholders equity] 8.44% 11.71%

20 Income from investments 477,860,493 538,532,052

21 Cash reserve requirement (CRR) maintenance (%) 23.98% 6.64%

22 Statutory Liquidity Reserve maintenance (%) 130.89% 117.62%

23 Capital Adequacy Ratio (%) 53.02% 78.79%

24 Weighted average earning per share Not Applicable Not Applicable

25 Net income per share [(PAT-Dividend on preference share/No. of Ordinary

Shares)]

Not Applicable Not Applicable

26 Price earning ratio (Market price per share/EPS) Not Applicable Not Applicable

27 Net Asset Value per Share (NAV) [(Shareholders equity- Preference

Share)/No. of Ordinary Share]

Not Applicable Not Applicable

State Bank of India Bangladesh Operation

Highlights on the overall Activities


87

2016

Interest receipts

Interest Income 956,695,007.19

Interest Receivables 2015 123,551,892.47

Interest Receivables 2016 (113,276,050.50)

966,970,849.16

Interest payment

Interest Expenses 291,321,596.15

Interest Payable 2015 66,057,758.13

Interest Payable 2016 (49,347,322.90)

308,032,031.38


SWIFT Charges 1,643,773.26

Interest Income from Local Banks 40,415.16

Service & Other Charges from Vostro Account 612,128.44

2,296,316.86


Rent, taxes, insurance, electricity etc. (73,009,418.49)

Legal expenses (1,461,468.00)

Postage, stamps, telecommunication etc. (7,805,467.49)

Stationery, printing, advertisement etc. (8,899,902.59)

Auditors' fee (300,000.00)


Depreciation on and repairs to bank's assets (22,256,125)

Other expenses (162,242,211)

(275,974,592.85)

Loans & advances to customers

Loans & Advances to customers as on Dec 15 4,409,452,413.04

Loans & Advances to customers as on Dec 16 (3,177,658,344.73)

1,231,794,068.31

Receipts from the capitalization/ Capital Transferred

to IBG (1,176,000,000.00)

(1,176,000,000.00)

Number of Clients:

Amount of outstanding advances: 2,765,885,063

Amount of classified advances: NIL

Measures taken for recovery: NIL

Client wise break-up is as follows:

December 2016

Funded Non Funded Total

1 UNITED AIRWAYS (BD) LTD 343,493,542.99 - 343,493,543

2 NITOL MOTORS LIMITED 286,403,728.68 - 286,403,729

3 APEX FOOTWEAR LIMITED 233,801,345.08 - 233,801,345

4 MOSTAFA CORPORATION LTD 185,818,385.31 - 185,818,385

5 CLEWSTON TRADING LTD 176,253,589.57 - 176,253,590

6 UTTARA FOODS & FEEDS (BANGLADESH) 165,800,120.38 30,454,993 196,255,113

7 NAHAR TRADING CORPORATION LTD. 154,937,315.90 - 154,937,316

8 HG AVIATION LTD 131,870,931.45 - 131,870,931

9 BANGLADESH EXPORT IMPORT CO.LT 128,014,902.30 - 128,014,902

10 GPH ISPAT LIMITED 114,372,549.97 - 114,372,550

11 ALLIANCE PROPERTIES LIMITED 104,018,976.31 - 104,018,976

12 BURO BANGLADESH 100,606,711.40 - 100,606,711

13 MASOOD AND COMPANY LTD. 99,641,818.57 - 99,641,819

14 ARAMIT CEMENT LIMITED 88,700,130.67 11,212,125 99,912,256

15 CEAT BANGLADESH LIMITED 84,186,765.70 10,914,189 95,100,955

16 T.J. INTERNATIONAL LIMITED 82,895,858.61 - 82,895,859

17 FAS FINANCE & INVESTMENT LIMIT 76,197,910.72 - 76,197,911

18 BARAKA LIMITED 72,548,268.07 8,247,871 80,796,139

19 SIX SEASONS FOOD AND BEVERAGES 70,789,962.41 - 70,789,962

20 SUNDARBAN EXPRESS TRANSPORTATI 65,532,248.95 - 65,532,249

2,765,885,063 60,829,178 2,826,714,241

SL.Outstanding (Taka)

Total


Details of Large Loan


Name of Clients

90