BCB Annual Report - 2013

2013
BCB Annual Report 2013
2013
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Table
of
Contents
04
Corporate Information
05
Notice of the 16th Annual General Meeting
07
Our Credo
08
Our Vision
09
Our Mission
10
Corporate Footsteps
12
Our Strategic Priorities
13
BCB at a glance
17
Brief Profile of Directors
22
Message from the Chairman
25
CEO & Managing Director's Round Up
28
Report of the Board Audit Committee
30
Director's Report
34
Stakeholder's Information
40
Economic Impact Report
42
Report on Corporate Governance
47
Management Team
52
Corporate Social Responsibility (CSR)
53
Management Review of Business
59
Risk Management
61
Basel-II Disclosures
75
Product & Service Review
79
Business Outlook 2014
81
Auditor's Report
84
Financial Statements
95
Notes to the Financial Statements
121 Annexure
126 Branch Network
LETTER OF TRANSMITTAL
To
All shareholders
Bangladesh Bank
Bangladesh Securities and Exchange Commission (BSEC)
Registrar of Joint Stock Companies and Firms
Dear Sir(s),
ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2013

The undersigned on behalf of Board of Directors and Management of Bangladesh Commerce Bank
Limited (BCB) is pleased to enclose a copy of the Annual Report for the year ended December 31, 2013
along with the Audited Financial Statements (Statements of Financial Position as at December 31, 2013,
Statements of Comprehensive Income), Cash Flow Statement, Statement of Changes in Equity and
Notes thereon of Bangladesh Commerce Bank Limited for your kind information and record.
Yours sincerely,
Mohammad Saiful Islam, FCMA

Company Secretary
04
TM
Corporate Office: Eunoos Trade Center (Level-22)

52-53, Dilkusha C/A, Dhaka-1000, Bangladesh
Notice of the 16th Annual General Meeting

Notice is hereby given that the 16th Annual General Meeting of Bangladesh Commerce Bank Limited will be held at
National Sports Council Auditorium, 62/3, Purana Palton, Dhaka-1000 on Thursday, September 25, 2014 at
12:00 a.m. to transact the following business:-
Agenda :
1. To receive, consider and adopt the Audited Financial Statements for the year ended on 31st December, 2013 and
Reports of the Directors and Auditors thereon.
2. To appoint Auditor(s) and to fix up their remuneration for the year 2014.
3. To transact any other business with the permission of the Chair.
Dated: August 29, 2014

Dhaka
By order of the Board of Directors
(Mohammad Saiful Islam)

Company Secretary
NOTES:
1. Although as per Article 112 to 114 of the Articles of Association of the Bank 01 (One) "Ga" Group Director
Mr. Rana Kaiser is to retire by rotation but on account of Order of the Status-quo passed by the Hon'ble High
Court Division in respect of his Directorship in the Bank, the retirement of Mr. Rana Kaiser and election to the
post is postponed. After the Status-quo order becomes inoperative the retirement of the Director by rotation and
election to vacant post will be arranged.
2. The Register Book of shareholders of the Company shall remain closed from 07-09-2014 to 08-09-2014 (both
days included) and no transfer of shares will be allowed during this period.
3. Proxy Form or Power of Attorney or Authorization Letter or Authorization attested by Notary Public is to be
submitted to the Registered Office of the Company at least 72 hours before the time fixed for the Meeting. If
Proxy Form duly filled in along with revenue stamp of Tk. 20.00 is not submitted within the stipulated time, the
Proxy form will not be treated as valid.
4. Registration Counter on the day of Annual General Meeting will remain open from 10:00 a.m. to 12:00 a.m.
Presentation of Attendance Slip is a must for registration.
5. Annual Report 2013 will be sent to the registered address of all respective shareholders. Anybody who has not
received the notice/proxy form is requested to visit the website (www.bcblbd.com) of the Bank or contact with
Board Division of the Corporate Office (Contact No. 9585701, 09613221070).
6. Respected Shareholders are requested to inform change of address (if any) to Board Division of the Corporate
Office on or before 4th September, 2014.
7. Respected Shareholders are requested not to bring children or any person who is not a Shareholder in
the Annual General Meeting.
06
OUR CREDO
CUSTOMERS
Giving value to our
customers is our
destiny to achieve our
goals to grow high
COLLEAGUES
STAKEHOLDERS
Our Stakeholders
prosperity rely on
our honesty, dignity
and hard working
We can challenge any sort

of circumstances with our
efficient colleagues as a team
and wish to acquire a
rewarding place in the
banking sector
07
Our Vision
To become a Bank of first choice by the customers with

meaningful contributions to the society.
08
Bangladesh Commerce Bank Ltd. is committed to

fulfill its customer needs and become their first
choice in banking so that a sustainable growth,
reasonable return and contribution to the
development of the country can be ensured with
a motivated and professional work force.
09
OUR CORPORATE FOOTSTEPS

Date
Events
08.02.1998
Board of BCBL directors been formed
01.06.1998
Incorporated as public limited company under the Companies Act, 1994, Bank
Companies Act, 1991 and in accordance with the Parliamentary Act No. 12 of 1997
06.09.1999
Bank has started it's operation with 24 branches around the Country.
16.11.2002
25th Branch opened in Comilla
28.04.2011
BCB relocated its Corporate Office from Taranga Complex to 52-53,

Dilkusha C/A, Eunoos Trade Center (Level-22), Dkaka-1000.
25.05.2011
BCB launched "BCB Credit Card"
27.09.2011
26th Branch opened in Mymensigh as Seedstore Bazar Branch
20.10.2011
27th Branch opened in Dhaka as Uttara Branch
30.11.2011
28th Branch opened in Feni as Feni Branch
07.12.2011
29th Branch opened in Dhaka as Bijoynagar Branch
15.12.2011
30th Branch opened in Chittagong as Muradpur Branch
28.03.2012
BCB launched Mobile Banking (Mobile Financial Services)
30.07.2012
31st Branch opened in Lakshmipur as Mandaribazar Branch
27.08.2012
32nd Branch opened in Dhaka as Bandura Branch
06.09.2012
33rd Branch opened in Jessore as Jessore Branch
17.09.2012
34th Branch opened in Dinajpur as Dinajpur Branch
14.11.2012
35th Branch opened in Paltan, Dhaka as Foreign Exchange Branch
03.12.2012
36th Branch opened in Moulvibazar as Juri Branch
17.12.2012
37th Branch opened in Dhaka as Savar Branch
24.12.2012
38th Branch opened in Barisal as Batajore Branch
30.06.2013
39th Branch opened in Dhaka as Pragati Sarani Branch
04.07.2013
40th Branch opened in Khulna as Kapilmuni Branch
05.12.2013
41th Branch opened in Barisal as Barisal Branch
15.12.2013
42th Branch opened in Dhaka as Kathgora Bazar Branch
11
OUR STRATEGIC PRIORITIES

To maintain a healthy growth of business in all core activities with desired
image.
To acquire state-of -the art technologies and adopt innovative ideas for
financial inclusion.
To strengthen the risk management technique and compliance culture.
To expand the customer base and maintain an incremental deposit & reduce
the non-performing assets gradually.
To develop appropriate corporate governance system and culture with best
practice.
To establish relationship banking & continuous improvement of service
quality.
To extend banking services to all classes of people.
To ensure environment friendly investment in line with Bangladesh Bank's
"Green Banking Guideline".
To take effective measures to increase capital base and provision shortfall.
To enrich management capacity & human resources quality and develop a
pro-active work force with a suitable compensation package.
To be a trend-setter in the socio-economic development of the country.
12
BCB
at a glance
Name :
Bangladesh Commerce Bank Ltd. (BCB)
Date of Incorporation :
1st June, 1998

A public limited company incorporated in Bangladesh on June 01, 1998 under the
Companies Act, 1994, the Bank Companies Act, 1991 and Parliamentary Act 12 of 1997.
Our Core Business :
Bangladesh Commerce Bank Limited is known as a commercial bank. Like all commercial
banks BCBL's core business is also obtaining deposits and providing loans. It is a financial
institution providing services for businesses, organizations and individuals. Services include
offering different types of deposit account such as current deposit account, saving deposit
account and other scheme account as well as giving loans to organizations and individuals
to accelerate economic development.
BCB make its profit by taking small, short-term, relatively liquid deposits and transforming
these into small, medium, larger loans for short, medium and long term maturity loans.
These processes of asset transformation generate net income for BCB. BCB also earned
short term profit by investing through treasury functions as well as non funded business.
However, BCB is primarily engaged in deposit and lending activities to private and
corporate clients in wholesale and retail banking. Other services typically include credit
card, mobile banking, custodial service and guarantees, cash management and settlement
as well as trade finance.
Authorized Capital :
BDT 10,000 Million
Paid Up Capital :
BDT 1,989 Million
Face Value Per Share : BDT 100 per share

13
Ownership Composition:
SL. Category
No.
01.
KA
The Government of The People's

Republic of Bangladesh
KHA
03.
GA
Amount (Taka)
6,750,000
33.94
675,000,000.00
0.00
800
Three State Owned Bank ( Sonali,

Janata & Agrani bank ltd.)
2,249,982
11.32
224,998,200.00
Govt. Owned Corporate Bodies
1,024,613
5.15
102,461,300.00
Depositors and Other Private Shareholders
9,862,825
49.59
986,282,500.00
19,887,428
100.00
1,988,742,800.00
Sponsors as per MoA & AoA

02.
% of
Holdings
No. of
Shares
Name of Holders
Total
The Government of the

People's Republic of
Bangladesh
33.94%
Three State Owned Bank
49.59%
Govt. Owned Corporate

Bodies
Depositor & Other Private
Shareholders
11.32%
5.15%
Auditor
: ACNABIN, Chartered Accountants.
Tax Consultant
: K. M. Hasan & Co., Chartered Accountants.
Legal Adviser
: Mr. Mohammad Idris Alam

District & Session Judge (Rtd.)
Registration Number
: C-35510(2286)/98
Bangladesh Bank License Number : BRPD(P)744(KHA)/99-2842
14
Registered Head Office
: Eunoos Trade Center (Level-22),

52-53, Dilkusha C/A,
Dhaka - 1000
PABX
: 9559831
Fax
: 9568218
Commercial Banking:
Investing in Success
In Commercial Banking, we know our success is attach
directly with our Clients. That's why good corporate
citizenship is all about. We believe a good bank placed at the
center of a business community as a facilitator of prosperity,
an active lender and a reliable source of business solutions.
Composition of Board and its Committees

CHAIRMAN
Mr. Md. Yousuf Ali Howlader
DIRECTORS
Mr. ATM Murtozaa Reza Chowdhury ndc
Mr. Tapan Kumar Karmaker
Mr. Md. Farhad Uddin
Dr. Md. Zillur Rahman
Mr. Pradip Kumar Dutta
Mr. Rana Kaiser

Mr. Manwar Hossain
Mr. Anis Ahmed
Mr. Abbas Uddin Ahmed
CEO & MANAGING DIRECTOR

Mr. Abu Sadek Md. Sohel
EXECUTIVE COMMITTEE
Chairman
Member
Member
Member
Mr. Manwar Hossain
Member
Mr. Anis Ahmed
Member
Member
AUDIT COMMITTEE
Chairman
Member
Member
Mr. Rana Kaiser
Member
COMPANY SECRETARY
Mr. Md. Abdul Karim
16
The Board of Directors, Bangladesh Commerce Bank Limited consists of 11 Members including the Managing
Director. The brief introduction of Members of the Board of Directors is as follows:-
Mr. Md. Yousuf Ali Howlader, son of Late Nazem Ali Howlader was born in a reputed
Muslim family of the village Angaria of Rajapur thana, Jhalakathi in 01st February,
1945. He obtained M.Com. in Management from the University of Dhaka. He started
his career in 1966 as Senior Officer with the then Muslim Commercial Bank Limited.
He was promoted as Deputy Managing Director in the year 1999 and posted to
Sonali Bank and rendered his precious service in Sonali Bank as a successful
Deputy Managing Director & Managing Director (Current Charge) till 01.08.2000. He
also worked as the Managing Director of Bangladesh Shilpa Rin Sangstha & AlArafah Islami Bank Ltd. Besides, Mr. Md. Yousuf Ali Howlader acted as the Director
of Investment Corporation of Bangladesh Ltd.

Chairman
During his tenure of service in Sonali Bank as the General Manager, he was awarded
'Atish Dipankar Gold Medal 1995-97' for being the Best Banker and 'Sher-e-Bangla'
award, for rendering exceptional contribution in the Banking sector in 2012.
Mr. Md. Yousuf Ali Howlader had been an examiner of the Institute of Bankers
Bangladesh. He has an extensive experience of attending numerous Trainings &
Seminars on various issues related to the Banking services.
He has visited Pakistan for inspecting branch of Rupali Bank, UK for Branch of Sonali
Bank and USA for Treasury & Institutional Function of Standard Chartered Bank,
U.S.A.
He was related with various social activities. From 1968 to 1985 he held different
positions in international institution "Apex Club, Bangladesh". He was the Secretary
General of "Barisal Samity" at Sylhet from 1978 to 1980.
He performed as Banking Advisor of Bangladesh Garments Manufacturers &
Importer Association before he join Bangladesh Commerce Bank Limited as Director.
Mr. ATM Murtozaa Reza Chowdhury ndc, son of Mr. Md. Serajul Haque Chowdhury
was born in 1957 in a humble Muslim family. He is a Government nominated Director
of Bangladesh Commerce Bank Limited. Mr. Chowdhury is a senior civil servant in
the Government Sector and presently he is holding the position Additional Secretary
in the Ministry of Commerce, Government of the People's Republic of Bangladesh.
He is the casual leave substitute of the Secretary.
Mr. Chowdhury completed MA in English from the University of Chittagong. He has
remarkable contribution in the socio-cultural arena.
Mr. ATM Murtozaa Reza

Chowdhury ndc
Director
17

Director
Mr. Tapan Kumar Karmaker, son of Mr. Sukumar Karmaker was born in 1962 in a
respectable family. He is a Government nominated Director of Bangladesh Commerce
Bank Limited. Mr. Karmaker is a senior servant in the Government Sector. He
achieved MA degree in English Literature with Honours from the University of Dhaka
and also completed MBA in concentration with HRM. At present he is the Additional
Secretary of Finance Division in Ministry of Finance, Government of the People's
Republic of Bangladesh. He started his professional career by joining in Bangladesh
Civil Service Administration Cadre in 1986 and since then he successfully performed
his duties with salient reputation in a number of ministries/departments/organizations
like Ministry of Land, Ministry of Foreign Affairs, Local Government Division,
Bangladesh Civil Service Administration Academy, Bangladesh Public Administration
Training Centre, Department of Narcotics Control, Ministry of Public Administration.
He also worked in the Field Administration as Upazila Nirbahi Officer (Sub-district
Executive Officer) and Additional Deputy Commissioner.
Apart from his present assignments in the Finance Division, Mr. Tapan Kumar
represents Bangladesh as Alternate Director on the Board of SAARC Development
Fund (SDF).
Mr. Md. Farhad Uddin, son of Mr. Md. Afazuddin Molla was born in 1955 in a humble
Muslim family. He is a Government nominated Director of Bangladesh Commerce
Bank Limited. As senior civil servant in the Government Sector, at present he is the
Additional Secretary of Ministry of Industry, Government of the People's Republic of
Bangladesh. He holds important positions in various Government Organizations
namely (I) Chairman, BFIDC, (II) DG-DMB (III) Member-BEPZA.

Director
Dr. Md. Zillur Rahman, son of Late Moyez Uddin Sheikh was born in 1954.
Mr. Rahman completed his B.Com (Hons) and Masters in Management from the
University of Dhaka with distinction. He has completed his Ph.D. from the Institute of
Bangladesh Studies under the University of Rajshahi in Credit Management. Initially
he started his career in BIDS (Bangladesh Institute of Development Studies) as a
Research Assistant. Later on, he worked in Bangladesh Sangsad Limited as
Research Officer & Population Control and Family Planning Division as a Quality
Control Officer.

Director
Mr. Rahman started his Banking career in 80s in Bangladesh Krishi Bank and worked
in various position at Bangladesh Krishi Bank. As an experienced banker, he also
worked in Rupali Bank and Janata Bank as a Deputy Managing Director. Now Mr.
Rahman is the Managing Director of Bangladesh Development Bank Limited.
Throughout his professional career as a successful banker, Mr. Rahman conducted
more than 125 (One hundred twenty five) training courses. He participated many
training classes as a resources/guest speaker in different Training Institutions and
Establishment of the country like BIBM, BIM, BSTD and Different Training Institutes
in the Banking sector.
Mr. Rahman is a very amiable person with indomitable spirit. Besides he also
engaged in many social activities.
18

Mr. Pradip Kumar Dutta, son of Late Jitendra Kumar Dutta was born in a respectable
family in Mymensingh on 26th November, 1953. He is the son of Late Jitendra
Kumar Dutta and Late Amio Bala Dutta. Mr. Dutta is a Government nominated
Director, as well as the Member of the Executive Committee of the Board of Directors
of Bangladesh Commerce Bank Limited.

Director
Mr. Dutta did his M.Sc in Applied Chemistry from the University of Dhaka in 1974. He
started his career with Sonali Bank in 1977 as a Probationary Officer. Mr. Dutta has
served in various positions in Sonali Bank including Branch Manager, General
Manager's Office and Head of as many as 20 Operational Divisions of the Bank. On
getting promotion as General Manager he was posted to Divisinal Officer of
Bangladesh Krishi Bank and served there from 4th September 2003 to 17th March
2005. Then he again came back and joined Sonali Bank and worked there as a
General Manager and Deputy Managing Director till he was promoted and posted as
Managing Director of Rajshahi Krishi Unnayan Bank on 18th July, 2010 where he
worked till 14th June, 2012. He has been appointed as the Managing Director and
CEO of Sonali Bank Limited and working there since 17th June, 2013. In his career
he gained expertise in all types of banking activities having vast practical exposure.
He is widely acknowledged for his cooperative attitude and amiable deposition in the
industrial Sector.
Being the Managing Director and CEO of Sonali Bank Limited. Mr. Dutta is a man of
pleasing personality. During his career as a banker, he attended many trainings,
seminars and workshops in home and abroad; visited Japan, UK, USA and many
other countries in the world.
Presently, he is holding various positions (Ex-Officio) of the other Institutions viz Chairman, Sonali Exchange Incorp., New York, USA; Vice-Chairman, Institute of
Bankers Bangladesh (IBB); Member, Governing Board, Bangladesh Institute of Bank
Management (BIBM) and Vice Chairman, Bangladesh Foreign Exchange Dealers
Association (BAFEDA); Director, Sonali Bank (UK) Ltd., London, UK; Primary
Dealers Bangladesh Ltd. (PDBL); Investment Corporation of Bangladesh (ICB);
Sonali Investment Ltd. (SIL); Central Depository Bangladesh Ltd. (CDBL); Industrial
and Infrastructure Development Finance Company Ltd. (IIDFC) and Dhaka Stock
Exchange Ltd. (DSE).
Mr. Rana Kaiser, son of Mr. A.B. Siddiq was born in a respectable Muslim family in
1975. After completion of his BBA, he involved himself in number of business
houses. He earned a notable fame in the business community for his remarkable
progress especially as a young entrepreneur. Mr. Kaiser has completed several
relevant courses in concentration with business. Other than the Director of
Bangladesh Commerce Bank Limited. Mr. Kaiser is also the member of Audit
Committee then the Board of Directors.
Mr. Kaiser is also engaged in various social activities such as, the Permanent Donor
of the Badda Orphanage and took part in Feeding the Homeless and Flood Relief
Program. Mr. Kaiser is a sportsman too. In his student life he was the member as
well as the Captain of Soccer Team and 3rd Seeded Player of Tennis Team, Sandy
Spring, Maryland, USA. He is also a Terry Fox Runner.
Mr. Rana Kaiser
Director
Mr. Rana Kaiser is a man of pleasing personality. As a smart, dynamic and

successful businessman Mr. Kaiser enjoys high admiration from all walks of life.
19

Mr. Manwar Hossain is the son of Country's renowned Business philanthropy
Al-haj Anwar Hossain. He is the Group Managing Director of Anwar Group. He is
also the Chairman of Bangladesh Finance and Investment Co. Ltd., and ViceChairman of BD Finance Securities Ltd. He is also the formar Director of City Bank
Limited. After completion of BBA & MBA from University of New Hampshire, USA,
he joined Conglomerate - Anwar Group of Industries (AGI) in 1994. His contribution
in banking and financial institution is noteworthy. He is also associated with different
social and trade bodies makes him amongst the most recognized Business
personality of the new generation.
Mr. Manwar Hossain

Director
Mr. Anis Ahmed son of Mr. M. Ghaziul Haque was born in 1966 in a respectable
Muslim family. In 1993 after completion of MBA from Arkansas State University,
United States of America, he started his business career. He is considered as a
young entrepreneur of the country with a very high growth potential. He is involved
with different business houses and organizations.
Mr. Ahmed is the Managing Director of MGH Group. MGH Group a Singaporeheadquartered conglomerate, has core business interest in Regional supply chain,
International Transportation, Consumer Products Distribution, Aviation Services, Media
Entertainment, Information Technology, Tea Plantation and Commercial Banking
respectively. Mr. Ahmed has been selected as the Honorary Consul of Republic of
South African Government to represent Bangladesh from 7th August, 2011.
Mr. Anis Ahmed
Director
Mr. Anis Ahmed is a man of amiable personality with diversified experiences &
knowledge, and has deep affinity, and attachment with various socio-cultural
activities.
Mr. Abbas Uddin Ahmed, son of Late Mr. Badruddin Ahmed was born in 1944 in a
respectable Muslim family. He is the Director as well as the member of Executive
Committee of the Board of Directors of Bangladesh Commerce Bank Ltd. He is a
renowned banker. He has served in very senior position in various Banks and
financial institutions. He started his banking career in 1966 by joining Habib Bank Ltd.
as Trainee Officer.
Mr. Abbas served as the CEO of Bank of Maldives, Republic of Maldives. He was
also the Managing Director of Nepal-Bangladesh Bank Ltd., Nepal, IFIC Bank Ltd.
and The City Bank Ltd. of Dhaka, Bangladesh. Besides, he is the Director of
Bangladesh Industrial Finance Co. Ltd., Summit Power Limited. Mr. Abbas is the
Special Director of Sunflower Life Insurance Co. Ltd.
Director
20
With his sophisticated personality and amiable disposition he enjoys high admiration
and esteem in all walks of life. Apart from the above, he is involved with various
social activities.

Mr. Abu Sadek Md. Sohel joined Bangladesh Commerce Bank Limited as CEO &
Managing Director on 02-10-2013. Prior to joining this Bank, he was the Additional
Managing/Deputy Managing Director of Social Islami Bank Ltd. He also was the
Deputy Managing Director of Agrani Bank in 2005. On being elevated to the rank of
Deputy Managing Director by the Ministry of Finance, Government of the people's
Republic of Bangladesh, he was the General Manager of International Division and
General Credit of Agrani Bank from June, 2002 to July, 2005. He also worked as
General Manager at Bangladesh Krishi Bank from April, 2001 to May, 2002
Mr. Sohel started his banking career in 1977 as Senior Officer of Sonali Bank. In
Sonali Bank, he was Branch Manager of Dilkusha Corporate Branch, Dhaka. He also
held key positions of Bank's Administration, Training and many other business areas
till his elevation to the rank of General Manager on 4th April, 2001.
CEO & Managing Director
Mr. Abu Sadek Md. Sohel was born in a respectable Muslim family in 1952 at
Netrokona. Mr. Sohel did his M.Sc. in Ag. Economics in 1976. He became Diplomaed
Associate of the Institute of Bankers Bangladesh in 1982. The Bangladesh Bank's
Guidelines on Managing Core Risks in Banking were implemented in Agrani Bank
under his personal initiative and direct supervision.
Throughout his entire banking career, he attended a plenty of training programs and
workshops at home and abroad. Among copious of training programs participated by
Mr. Sohel, "Credit Analysis Seminar of Bangladeshi Bankers" for 08(eight) weeks is
one of notable programs at his career arranged by Citi Bank School of Banking, New
York, USA. Besides, he participated in many training programs and workshops in
Germany, Hong Kong, China, Thailand, India and at home.
21
Esteemed Shareholders,
Assalamu Alaikum,
We are delighted to welcome all of you to the 16th Annual General Meeting of our Bank. Let me take this opportunity
to express my deep gratitude and heartfelt thanks for your trust, confidence and support.
On behalf of the Board of directors of the Bank, I have the pleasure to present the Annual Report for the year 2013 of
Bangladesh Commerce Bank Limited. As you all know, 2013 was a very crucial period in every term. Due to the
political turmoil specially in the later part of the year, our national economy suffered a set -back against the back drop
that world economy did not see its expected growth. Our GDP growth declined to 6.0% in FY 2013 which was 6.2% in
FY 2012. World economy continues to expand at a subdued pace. Over the past two years continuous noticeable
down-turn of the global economic activity slightly picked up in the second half of 2013. Most world regions are keen to
see a moderate pick-up in activity but growth is constantly to the below potential.
The Government of Bangladesh and Bangladesh Bank through their fiscal and monetory polices provided supportive
help of the economy. They are trying to extend social safety net in order to maintain growth momentum. Despite
having a difficult time, our Bank has shown its enduring strength by dint of continuous hard work and committed
dedication and devotion by the support of our team management and colleagues.
During the year 2013, the Bank mainly focused on making asset quality, strengthening financial position and
budgeting expenses towards profitability by growing core customer relationship base.
22

The Annual Report-2013 shows that deposit was Tk. 19736.2 Million having 26.4% growth and loans and advances
grew by 6.6% to Tk. 13063.7 Million from Tk. 12250.3 Million. As a result credit deposit ratio stood at 66.2% from
78.5%. Import of the Bank was Tk. 5095.4 Million, whereas export grew by 5.5% to Tk. 3225.4 Million and inward
remittance was Tk. 521.9 Million registering 44.8% growth. The recovery was Tk. 1443.4 Million showing 55.4%
growth over the last year 2012.
Overall, the Bank observed a steady success in restraining non-performing loans growth and curved non-performing
loan percentage slightly increased to 14.7% in 2013 from 12.9% in 2012. The management undertook a number of
serious initiatives to further curbing CL percentage by streamlining credit monitoring and visible recovery. In 2013, the
Bank posted an operating profit of Tk. 94.0 million, but to meet up previous year tax shortfall, it had to keep provisions
and the profit after tax stood at Tk. 20.0 million. The Bank, thanks to the management team and staff, ended the year
with a comfortable liquidity ratio of 29.8%.
It is a granted fact that development of human resources is not an expenditure, it is an investment adding to the
higher return. We have renovated the activities of the training institute of the Bank. 'Training imparts knowledge and
skill' based on this motto, we are conducting training programs regularly on need basis through Learning Modular
System by emphasizing upon 'Knowledge management' instead of traditional practices in order to harnessing the
potentially of our employees to make them professionally fit as a means to human capital as they are the leaders,
they will lead the Bank forward. With this end in view, we imparted training to 533 participants in different training
programs in 2013.
Today Banking is an essential service industry in change. We are set to extend customer-friendly services with
accuracy and quality of services through personalized attention and care to outperform the competitors in this sector
by our team management and colleagues. Warmth thanks are due to them.
Upon the supportive guidance and advice from the members of the Board of Directors, the management maintained
excellent control towards achieving its desired goal. During the year under review, the Bank opened another 4 (four)
branches adding to 38 branches (total: 42 branches) at commercially and socially important locations across the
country as a part of financial inclusion prescribed by Bangladesh Bank to serve more people.
Financial inclusion remained a strategic priority for the year 2013 to contribute to poverty alleviation by way of Agri
credit, promoting Ekti Bari Ekti Khamar (EBEK) project. The Bank also provided financial services more than 7,000
shomity having about 50 (Fifty) thousand members of the remote areas of the country. Bangladesh Commerce Bank
Ltd. has launched multipurpose service points branded as 'Touch Points' (TP) - the first TP being installed at Uttara
Branch. Gradually the Bank will install several 'Touch Points' at the prime locations of Dhaka city and other locations
over the country offering the services as: Cash withdrawal, cash deposit, remittance and various information about
day to day banking.
All the branches of BCB have been computerized since 2002 with 'Flora Bank System'. During the year 2013, almost
50% of our branches came up under Centralized Real Time Online Banking System with M/S. ERA Info tech Ltd.,
Bangladesh. The Bank is set to bring the remaining branches in the arm of Real Time Online Banking System by
June 2014. To meet the growing need for rendering prompt services to the customers, the Bank is trying its best to
automate all sorts of transaction in the branches. All the branches are well equipped with computers and 'Online
Banking Facility' through required network support to satisfy the customer's need.
Compliance of Law is not always convenient but our Bank is keen to adhere to the regulatory laws and regulations in
order to respond to any changes. Our management team has taken a number of steps to adapt changes. We have
intensified our efforts to control expenses and identify areas to generate revenue. We are also implementing a
number of initiatives that will help us not only comply with the rules but also enhance the customers' satisfaction.
23
Strategic Outlook of the year 2014:

Now let me delineate the strategic outlook of the year 2014 in the following paragraphs:
At lenght I would like to express my hearty gratitude to all the members of the Board of Directors for their cooperation. I would also like to thank Bangladesh Bank and other regulatory authorities for their guidance and in
valuable support. I am also grateful to the shareholders for their constant trust, condidence and co-operation.
Last but not the least, warmest thanks to all members of BCB for their excellent hard work, notable dedication and
dynamic team spirit to make the Bank forge ahead.
At the end, I like to state that we believe in 'Reaching the destination needs smooth sailing'. I am confident that we
will succeed to establish our goal to make our Bank - 'a first choice Bank' in the year to come.
May Allah help us with His infinite blessings and favour towards our journey to reach the destination. With best
wishes to all of you.
(Md. Yousuf Ali Howlader)

Chairman
24
Respected Shareholders,
Assalamu Alaikum.
It is a great honor for me to have the opportunity to lead a bank like Bangladesh Commerce Bank Ltd. With pleasure I
would like to present a round-up of financial and operating performance of Bangladesh Commerce Bank Limited for
the year 2013. It was a year of moderate growth for Bangladesh Commerce Bank as we have not achieved enough
business performance for many reasons.
In 2013, our profit growth shows a downturn, which is mainly because of the slower loan disbursement compared to
deposit growth as the economy faced negative growth in loan disbursement in the private sector.
The year manifested protracted political deadlock and stagnation in normal functionality of almost all drivers of the
economy. Bangladesh economy had experienced slow growth in export and negative growth in import and for the
first time in foreign remittance, erosion of confidence of investors and rise in costs of doing business. Due to the
political downturn, negative growth in private sector investment, GDP of the country grew by 6.2% in FY 2012-2013
(based on 2005-06) which slightly fell from 6.3% of the previous fiscal year.
Despite the downturn in the economy, our bank's stay put in profitable trend in 2013. The Bank's profit after Tax
(PAT) for year 2013 was Tk. 17.0 million. In the year 2013 our total deposit from banking operation was Tk. 19,736
million registering 26.4% growth over 2012. Total loans & advances from banking operation stood at Tk.13,064
million showing 6.6% growth over the previous year. Capital adequacy ratio as per BASEL II was 14.28% against our
required CAR of 10% and whereas the industry average of CAR is 12.52%. Import was for Tk. 5095 million which
declined by 6.1% due to downturn in import trend while our export secured positive growth by 5.5% over 2012 having
total amount of Tk. 3,225 million. The bank has contributed to a great deal in remittance inflow as the growth in this
area was 44.8%.
25

In 2013, although we achieved total operating income of BDT 789 million only but we ended the year with strong
liquidity and capital ratio of 14.28%. This is an important measure of financial strength as at December 31,2013. The
Bank's deposit grew by 26.40% reflecting progress to make it a customers' oriented bank - their bank of choice.
In 2013, the Bank earned profit for an amount of BDT 81 million only before tax which is lower than that of year 2012
for insignificant business performances. Net profit attributable to shareholders reached to Tk. 17 million. return on
average equity was 0.61% and Earnings Per Share (EPS) stood at BDT 0.88. In 2013, though the Bank stood at the
verge of touching Tk. 20,000 million deposit milestones while at the end of the year the figure reached at Tk. 19,736
million. This was Tk. 15,611 million in the year 2012 securing a growth of 26.4% while the deposit growth in banking
industry was 16.26%. In 2013, BCB's Loans & Advances reached to Tk. 13,064 million.
The Bank's total assets posted a 25.38% increase in 2013, from Tk. 19544 million to Tk. 24,504 million. A major
contribution to this growth was the increase in loans & advances which jumped by 6.64% from Tk. 12,250 million to
Tk. 13,064 million. Fixed assets of the Bank also increased to Tk. 183 million from Tk. 165 million. The bank also had
to increase its Investment in Gov. Securities and others. The Bank's Equity is divided into two parts i.e. Tier-I and
Tier-II capital. Tier-I includes Paid-up Capital, Statutory Reserve. and Retained Earnings. Tier-II includes General
Provision on unclassified investments & Off -Balance Sheet items. The Authorized Capital of the Bank is Tk. 10,000
million and Paid-up Capital of the Bank is Tk. 1,989 million as on 31.12.2013. Total equity was Tk 3273 million as on
31.12.2013 securing a steady growth over previous year when the total equity was Tk 2328 million as on 31.12.2012.
In course of our operation and business expansion during 2013, we expanded our branch networks by opening 4
(four) new branches in different strategic locations. With this, our total number of branches stands at 42 (forty two) at
the end of 2013 and continue looking for more locations to expand our network every day. In addition to this, ATM
and bills Pay Machines were added during the year to gain operational efficiency and be more focused on customer's
service. We have taken different customer centric initiatives and as part of it, Bangladesh Commerce Bank Ltd.
launched multipurpose service points branded as 'Touch Points' where different direct services including cash
withdrawal, deposit, remittance, banking information etc. will be provided.
With the advent of technology and mobile communication, banks are now catering banking services through mobile
devices like Mobile Phone, PDA, POS terminals, PC & Thin Clients etc. to un-banked low income customers.
In 2012, the bank tied business relation with the Government's priority project "Ekti Bari Ekti Khamar". During 2013
the bank could able to provide financial services to 7,000 somity and around 5 Lac members across the country as
well as the bank collected a significant amount of low cost deposit. As another initiative of financial inclusion, the
bank has introduced Mobile Financial Service named "SCash". This new product is enabling the customers to avail
different services like account opening, cash deposit, cash withdrawal, balance transfer, bill payment, mobile
recharge etc by using mobile banking service offering by our bank.
BCB has developed effective risk management process within the organization to ensure adequacy of capital against
overall risk exposure. With this, we have been able to maintain our capital adequacy ratio within the limit prescribed
by Bangladesh Bank under Basel II. Also, there are sufficient measures of internal control systems embedded in our
day to day operation to identify and mitigate different operational and transactional level risks. Risk Management of
BCB evolves identification, measurement, monitoring and controlling risks to ensure that:
(a) The Bank's risk exposure is within the limits established by the Board of Directors.
(b) The Bank's risk taking decisions are in line with the business strategy and objectives set by the Board of Directors
of the Bank as well as Bangladesh Bank guidelines.
(c) The Bank's risk taking decisions are explicit and clear.
(d) Sufficient capital as a buffer is available to take risk.
The risk management policy of the bank operates under the following principles:
Oversight by the Board/ Executive Committee. The Board approves policies and processes of risk
management which is recommended by the top management and the Executive Committee approves the
credit proposals submitted by the top management;
Audit committee of the Board reviews the internal audit reports of the bank and risk management;
26

Bangladesh Commerce Bank is very much compliant to its corporate social responsibilities. Being socially
responsible, we believe and work to add value to the society and also to contribute to improving the quality of life of
our society as a whole. In 2013 our bank contributed Tk. 4.06 million in different areas for the betterment of our
society. We focused and are continuing our work for development and improvement in core areas like Education,
Health, Culture and Natural Resources.
I express my sincere gratitude to all stakeholders especially the Bangladesh Bank and National Board of Revenue for
their support and our valuable customers for their trust with us. Also, I would like to thank our entire BCB family for
their spirit, ownership, dedication and commitment to bring the success and request to continue to step forward for
achieving our ultimate goal.
The bank will direct its operation to achieve long term sustainable growth. To achieve that objective, the bank will
ensure proper management of its financial position, liquidity and solvency. A major project has been undertaken to
up-grade Polaris Online Banking Solution software to bring it at par with International Standard. The long expected
countrywide Mobile Banking project is at the verge of implementation in 2014. The Bank is reducing dependency on
high cost deposits and much emphasis has been given to increase retail deposits especially CASA (Current Account
& Savings Account) deposit through diversified products and services. In case of financing, we focus on providing
credits to the deserving valued clients by offering competitive price. The Bank will intensify its efforts to reduce the
NPL ratio, comply regulatory and internal requirements at all times and initiate more CSR activities in deserving fields
like:
- Branch opening;
- Expanding mobile banking agent network;
- Introducing agent banking; and
- Establishing business relation with International Payment Gateway service provider.
While concluding, I would like to express my deep gratitude to the regulatory authorities especially Bangladesh Bank,
Bangladesh Securities and Exchange Commission, Dhaka Stock Exchange and Chittagong Stock Exchange for their
continuous support and cooperation. I am expressing my sincere thanks and gratitude to the members of the Board
of Directors of our Bank for their policy guidelines and adequate support to the management to implement those.
Thanks are due to our respected shareholders, valued customers, patrons and all other stakeholders for their trust
and confidence in the Management of the Bank. Finally, thanks to my beloved colleagues of Bangladesh Commerce
Bank Limited for their efforts and dedication in achieving these inspiring results.
May Allah grant us wisdom and strength.
Abu Sadek Md. Sohel

27
Report of the
Board Audit Committee
BCBL established an Audit Committee as a sub-committee of the Board of Directors in accordance with the
Bangladesh Bank's directive vide circular # 11 dated October 27, 2013. The objective of this committee is to work as
a sub-committee of the Board in overseeing and monitoring overall internal control system and the financial reporting
process to ensure that the financial statements reflect true and fair view of the statement of affairs of the company.
Composition of Audit Committee:
In accordance with the directives of Bangladesh Bank vide Circular # 11 dated October 27, 2013 the Audit Committee
of BCBL is constituted with four members of the Board of Directors. The Company Secretary is working as Member
Secretary of the committee. Following are the members of the Audit Committee:
1.
Chairman
2.
Member
3.
Member
4.
Mr. Rana Kaiser
Member
5.
Mr. Md. Abdul Karim
Member Secretary
Roles & Responsibilities:

The authority and roles and responsibilities of the Audit Committee are assigned by board in accordance with the
directive of Bangladesh Bank vide circular # 11, dated October 27, 2013. Accordingly, Audit Committee is responsible
to oversee the adequacy, efficiency and effectiveness of the company's internal control system, financial reporting
process, internal and external audit functions and compliance with relevant laws and regulations. The prime
responsibilities of the Audit Committee among others are as follows:
I.
Internal Control
Evaluate compliance culture of the bank in respect of internal control and risk management.
Monitor management activities for development and maintain a suitable Management Information System
(MIS).
Review existing risk management procedure to ensure an effective internal control and compliance system.
Assess whether the recommendations from internal and external auditors to mitigate the deficiencies in the
internal control system have been implemented properly.
Review the effectiveness of measures taken by the management against any fraud, irregularity or deficiencies
II.
Financial Reporting
Review whether the annual Financial Statements are prepared correctly and completely in compliance with the
accounting and reporting standards to ensure true and fair view of the state of affairs of the company.
Harmonize auditor's disclosures with management policy and practices through discussion and meeting.
28
Report of Audit Committee
III.
Internal & External Audit Functions

Review the activities, resources and structure of the Internal Audit function and ensure that no unjustified
restrictions or limitations are made.
Review efficiency and effectiveness of internal audit functions.
Review management actions and remedial measures against findings and recommendations by the internal
auditors.
Review findings and recommendations of external auditors and management response and necessary actions
thereon.
Make recommendation to the Board regarding the appointment of the external auditors.
IV.
Compliance with Laws and Regulations
Review whether the bank operates in compliance with all relevant laws, regulations, rules and regulatory guidelines
of the state and also the internal policy and procedures as approved by the management.
Committee Meetings :
As per the requirement of Bangladesh Bank guideline, Audit Committee needs to hold 3 or 4 meetings in a year and
also may hold special meeting as and when required. In 2013 Audit Committee held three (3) meetings where
committee reviewed different issues related to company's risk management, internal control system and periodic
financial statements. Key officials as relevant to the matters discussed were present in the meeting as required by the
Committee.
Committee's Report Summary:
Audit Committee has been carried out the regular functions as assigned by Board through specified roles and
responsibilities. Key activities of the Committee during 2013 are outlined below:
I.
Reviewed and Endorsed Internal Audit Manual for BCBL;
II.
Reviewed and discussed with the external auditor regarding draft Audit Report and corresponding Financial
Statements for the year ended 31st December 2013;
III.
Considered and recommended the annual Financial Statements for the year ended 31st December 2013 along
with the Audit Report for final approval from Board;
IV.
Reviewed the audit report on BCBL Green Road branch by the internal audit department and the audit team
from Bangladesh Bank. Committee discussed the audit outcomes in detailed considering the associated risk
and recommended necessary actions to mitigate the risks;
V.
Reviewed the audit report on BCBL Mouchak branch by the internal audit department and the audit team from
Bangladesh Bank. Committee discussed the audit outcomes in detailed considering the associated risk and
recommended necessary actions to mitigate the risks;
VI.
Reviewed the audit report on BCBL Khilgaon branch by the internal audit department and the audit team from
Bangladesh Bank. Committee discussed the audit outcomes in detailed considering the associated risk and
recommended necessary actions to mitigate the risks;
VII. Reviewed the status of corrective measures taken by the management with regards to the previous
recommendations of the committee relating to the deficiencies in internal control and other relevant issues; and
VIII. Reviewed the shareholding and loans and liabilities status of the directors of former Bangladesh Commerce
and Investment (BCI) Ltd.
All meeting proceedings including the discussions and recommended action items of the Audit Committee were
properly documented and reported to the Board of Directors.
29
Directors' Report
Directors' Report 2013

On behalf of the Board of Directors of Bangladesh Commerce Bank Limited I would like to welcome you all to the
graceful event of our 16th Annual General Meeting. Before commencing the main occasion we gathered here for
which I am delighted to present Bank's 16th Annual Report to the valued stockholders and other interested groups of
people and organizations.
In addition to the oversight responsibilities, the Board of Directors has to ensure that the Financial Statements of the
Bank and its subsidiaries are prepared in accordance with Bangladesh Financial Reporting Standards (including
Bangladesh Accounting Standards), relevant provision(s) of the Companies Act, 1994, Bank Companies Act, 1991,
rules and regulations of Bangladesh Bank.
The report mainly includes Auditor's Report, Director's Report, Management Analysis, Audited Financial Statements of
the bank and its subsidiary company. Apart from presenting the financial statements the board of directors like to
explain and disclose certain issues which they deem relevant and important to ensure complete, true and fair
presentation with the believe that the report will give a factual insight of financial performance and position of the bank.
Economical Prospects
Despite improved global financial conditions and reduced short-term risks, the world economy continues to expand at
a subdued pace. After a marked downturn over the past two years, global economic activity is expected to slowly
gain momentum in the second half of 2013 and in 2014 on the back of accommodative monetary policies in
developed and developing economy. The short-term risks associated with the situation in the euro area, the fiscal
adjustments in the United States and the economic slowdown in large developing countries have diminished, but not
disappeared. Underperformance in the world economy was observed across almost all regions and major economic
groups. Most developed economies continued struggling in an uphill battle against the lingering effects of the
financial crisis, grappling in particular with the challenges of taking appropriate actions over fiscal and monetary
policy. A number of emerging economies, which had already experienced a notable slowdown in the past two years,
encountered new headwinds during the period 2013 on both international and domestic fronts. Some signs of
improvements have shown up more recently; the euro area has finally come out of a protracted recession, with Gross
Domestic Product (GDP) for the region as a whole returning to growth; a few large emerging economies, including
China, seems to have backstopped a further slowdown and are poised to strengthen.
The economic meltdown in richest countries of world over the last two years has negatively affect the foreign trade of
Bangladesh. Export growth declined to 5.99% and 11.22% in the financial year 2011-2012 and 2012-2013 and from
41.49% in the financial year 2010-2011. Import also shrank down to 5.52% and 4.03% in the financial year 2011-12
and 2012-13 which was 41.79% in 2010-11. During the 2011-12 and 2012-13 GDP growth stood at 6.52% and
6.01%. The projected GDP growth is 6.12% for the financial year 2013-14. As the political situation stabilized
momentarily and stays for a while we hope that the economy will grow as projected. Bangladesh economy go through
a difficult time during the financial year 2013 which caused lower growth in private sector, increasing idle money in
money market, recovering the capital market meltdown, sluggish growth in import and export business etc. But in the
upcoming year, country may likely to have very good business environment as the richest countries are recovering
the financial crisis which will improve foreign trade business and to support foreign trade business, local investment
will also increase. Due to Bangladesh Bank's time to time effective monetary policy, money market will be on stable
path whereas different initiatives from Government help to bring back domestic and foreign investors to the capital
market.
BCB Review
Bangladesh Commerce Bank Limited (BCBL) was established by the Parliamentary Act No. 12 of 1997, passed by
the Parliament of the People's Republic of Bangladesh. Subsequently on February 08, 1998 as per clause 7(7) of Act
12 of 1997, the Government constituted the Board of Direcotrs consisting 11 Members to organize BCBL and
administer the affairs of the Bank in accordance with the Act.
Bangladesh Commerce Bank Limited was incorporated on June 01, 1998 as a public limited company under the
Companies Act, 1994, Bank Companies Act, 1991 and in accordance with the Parliamentary Act No. 12 of 1997. The
Bank formally started operation from September 16, 1999 with the slogan of "A People's Bank with a Mission".
Few days back bank changed its corporate logo and initiated a new slogan which says "Service with Trust" as the
bank believe in providing high quality personalized services.
31
Directors' Report
Having been registered with the Registrar of Joint Stock Companies and Firms (RJSC) with the prior approval of
Securities and Exchange Commission (SEC), Bangladesh Commerce Bank Limited commenced banking operation
with the opening of its Principal Branch at 19, Rajuk Avenue, Motijheel C/A, the financial hub of the capital city Dhaka
on September 16, 1999. By the end of the accounting year 1999, the other 23 branches in Dhaka, Chittagong,
Khulna, Sylhet metropolitan area and Bogra, Naogaon, Narayangonj started functioning. At present BCBL is
successfully running operation in 42 branches with its last branch opened in Kathgora Bazar, Ashulia, Dhaka.
Export/Import/Foreign Exchange business is being done through our A/D Branches. We are also member of SWIFT.
Import-Export, Foreign Exchange, Remittance related activities are performed with SWIFT. The bank is now using
core banking solution of ERA InfoTech Limited. Bank has established its own data center which is equipped with
modern machineries and equipments to provide all kind of technological support as required by the bank.
Review of Financial Reporting

The Directors are responsible for the preparation and fair presentation of financial statements in accordance with
applicable financial reporting framework, laws and regulations.
Maintenance of Proper Books of Account

Proper books of account as required by the law have been kept by Bangladesh Commerce Bank Limited. The
external auditor i.e. ACNABIN, Chartered Accountants also provided their opinion on the same in section ii) of
"Opinion Paragraph" of their audit report. The said audit report has been mentioned in page no 81.
Application of Accounting Policies and Accounting Estimates

Appropriate accounting policies have been consistently applied in preparation of the financial statements of the Bank
and that the accounting estimates are based on reasonable and prudent judgment. Estimates and underlying
assumptions are reviewed on an ongoing basis and any revisions to these are recognized in the period in which the
estimate is revised and if any future period affected. The significant accounting policies applied and accounting
estimates used for preparation of the financial statements of the Bank have been stated in details in Page No. 95 to
102 of the FS 2013.
Preparation of Financial Statements as per BAS/ BFRS

The financial statements of the Bank as at and for the year ended 31 December 2013 have been prepared under the
historical cost convention and in accordance with Bangladesh Financial Reporting Standards (BFRSs), the "First
Schedule" (section 38) of the Bank Companies Act 1991, as amended by the BRPD Circular no. 14 dated 25 June
2003, other Bangladesh Bank Circulars, the Companies Act 1994, the Securities and Exchange Rules 1987, and
other laws and rules applicable in Bangladesh. In case the requirement of provisions and Circulars issued by
Bangladesh Bank differ with those of other regulatory authorities and accounting standards, the provisions and
Circulars issued by Bangladesh Bank shall prevail.
Going concern basis

The financial statements are prepared on a going concern basis, as the directors are satisfied that the company has
the resources to continue its business for the foreseeable future. In making this assessment, the directors have
considered a wide range of information relating to present and future conditions. Further information relevant to the
assessment is provided in the following sections of the financial statements:
Principal activities, strategic direction and challenges and uncertainties are described in the business review;
a financial summary, including a review of the statement of comprehensive income and statement of financial
position, is provided in the financial results section; and
objectives, policies and processes for managing credit, liquidity and market risk, and the Company's approach
to capital management and allocation, are described.
32
Directors' Report
The current economic environment remains challenging. In this context, management performed the strategic review
in the previous year which led to a refocus of existing business, as well as stringent cost measures. As a result of
these strategic measures, and the continued development of the business operating model in order to align with the
Bangladesh Bank and our strategy and market conditions, continuing operations returned to profitability. The
Company has maintained a comfortable capital and liquidity position. BCBL will be able to meet its contractual
liabilities.
Having considered the factors set out above, the group continues to adopt the going concern basis in preparing the
annual financial statements
Adding value through technology

To provide real time banking service to customer BCB acquired Core Banking Solution from ERA InfoTech Limited.
We established modern equipped Data Center and to comply Bangladesh bank IT policy bank within a very short
time will establish Disaster Recovery Site. From mid 2014 the bank will introduce Debit Card to its customer. To
facilitate the transaction through International Payment Gateway bank is in the process of establishing business
relationship with Payza.com.
As Commercial Banking continues to grow, it is important that we are able to support this expansion with our
technology. BCB formed a joint venture IT Firm "Sonali Polaris Financial Technology Ltd (SPFTL)" in association with
Polaris Financial Technology Ltd, India a leading global Financial Technology Company, Sonali Bank Ltd., the largest
State-owned Commercial Bank in Bangladesh and Rajshahi Krishi Unnayan Bank (RAKUB) a specialized bank. This
company is country's first foreign-local partnership venture in this class aiming to technology transfer and boost up
country's IT strength and develop local manpower in this sector. The mother company is Polaris Lab, India which is a
CMM Level-5 software company.
Financial Inclusion
BCB streamlined its operation with Government project "Ekti Bari Ekti Khamar" by working as financial partner. Bank
provides financial services to more than 7000 shomity which includes around 5 million members from the deep
remotest areas of the country. To provide mobile financial service to rural people bank started Mobile Financial
Service named "Scash" with business partner Sundorban Courier Service and technological partner Pragati Systems
Limited.
Upcoming Year
Due to different socio economic condition business environment was not that much favorable during 2013 but in the
upcoming year the socio economic condition will be stabilized hence the bank have to capitalize that. We have
different plan to introduce new and innovative business line within 2013 to serve our customer in better and
diversified ways. To broaden the business and service coverage bank will introduce agent banking service which will
provide all kinds of banking service to the customers at their doorsteps in the rural and suburban areas. Bank will
introduce products and service which helps to attract more customer to bank. To reach its desired goal maintaining or
improving credit quality is will be one of the most important consideration for the bank. Bank has lower its NPL by
restructuring the existing NPL and increasing good quality and high yielding assets. Considering the national and
global economy it can be predicted that international business in 2014 will be a good opportunity to take off. All of
our effort must direct towards the ultimate goal of maximizing shareholders value for what we exist and continue our
business. We believe we will be able to perform by providing trustworthy service to our customers to be their choice
of bank.
On behalf of the Board of Directors.
Md. Yousuf Ali Howlader

Chairman
33
Stakeholder's information
Financial Highlights
(Figure in million)
Financial Highlights - 2013

Particulars
1.
2.
3.
4.
Performance during the Year
2013
2012
Consolidate
Bank
Consolidate
Bank
i. Net Interest Income
347.76
334.34
414.63
406.64
ii. Non Interest Income
513.10
455.38
540.37
479.61
iii. Operating Income
860.86
789.72
955.00
886.26
iv. Operating Profit
156.51
128.50
324.66
300.46
v. Profit after Tax
20.00
17.50
112.60
101.21
i. Loan
12,623.71
13,063.71
12,250.26
12,250.26
ii. Investments
4,545.48
4,735.66
2,603.39
2,796.49
iii. Deposits
19,736.16
19,736.10
15,610.99
15,610.53
iv. Shareholders' equity
3,279.13
3,273.16
2,331.81
2,328.34
v. Total Assets
24,677.44
24,504.15
20,080.87
19,544.81
I. Earnings per share (weighted average)
1.01
0.88
5.66
5.09
ii. Price earning ratio (times)
99.43
113.66
17.66
19.65
iii. Net asset value per share (BDT)
164.88
164.58
117.25
117.08
I. Capital adequacy ratio (as per Basel II)
13.68%
14.28%
10.07%
10.44%
II. Non performing loans
14.68%
14.68%
12.87%
12.87%
III. Cost to income ratio
81.82%
83.73%
66.00%
66.10%
Year End Financial Position
Information Per Ordinary Share
Ratios (%)
Financial Goals and Performance (Bank)

Capital Adequacy Ratio (CAR) %
13.68%
14.28%
10.07%
10.44%
Return on average equity (ROE) %
0.61%
0.53%
4.82%
4.34%
Return on average assets (ROA) %
0.08%
0.07%
0.52%
0.52%
Cost to income ratio (%)
81.82%
83.73%
66.00%
66.10%
NPL to total loans and advance (%)
14.68%
14.68%
12.87%
12.87%
Deposits (BDT Million)
19,736.16
19,736.10
15,610.99
15,610.53
Loans and advances (BDT Million)
12,623.71
13,063.71
12,250.26
12,250.26
34
5 Years Progression
A. BALANCE SHEET METRIC
Figure in Million
2013
2012
2011
2010
2009
Authorized capital
10,000
10,000
10,000
10,000
2,000
Paid up capital
1,989
1,989
1,989
1,989
920
Shareholders' equity
3,273
2,328
2,217
2,146
1,018
Deposits
19,736
15,611
13,877
12,188
7,605
51
155
1,000
Loans and advances
13,064
12,250
11,334
8,266
6,256
Credit to deposit ratio (Gross)
66.19%
78.47%
81.67%
67.82%
82.26%
Credit to deposit ratio - Gross (excluding OBU loans)
66.19%
78.47%
81.67%
67.82%
82.26%
Investments
4,736
2,796
1,953
1,472
710
Fixed Assets
183
165
92
48
39
Interest bearing assets
11,145
10,697
10,337
7,198
4,771
Total assets
24,504
19,545
17,391
15,578
9,428
B. INCOME STATEMENT METRIC
2013
2012
2011
2010
2009
Net interest income (excluding Investment Income)
334
407
598
305
353
Non-interest income
85
64
55
43
22
Investment Income
274
319
115
179
72
Non Investment Income (Exchange, fees & charges)
96
96
132
91
44
Operating Revenue
790
886
900
618
491
Operating Profit (Profit before provision and tax)
129
300
499
325
288
Provision for loans, investment and other assets
47
123
275
163
136
Profit before tax
81
177
224
162
152
Profit after tax (PAT)
17
101
69
63
42
C. CAPITAL METRIC
2013
2012
2011
2010
2009
Risk weighted assets (RWA) under Basel II (Basel I for 2008)
18844
18,018
14,914
13,537
5,723
Core capital (Tier 1)
2540
1,744
1,984
1,793
1,003
Supplementary capital (Tier 2)
152
136
135
103
79
Total Capital / Regulatory capital (Tier 1 and 2)
2694
1,880
2,119
1,896
1,082
Statutory capital (Paid up capital and statutory reserve)
2182
2,168
2,132
2,087
986
Capital adequacy ratio (Regulatory capital/RWA)

[Basel II from 2009 & Basel I for 2008]-Solo Basis.
14.28%
10.43%
14.21%
14.01%
18.91%
Core capital (Tier 1) to RWA
13.48%
9.68%
13.30%
13.25%
17.53%
RWA to total assets [Basel II from 2009 & Basel I for 2008]
76.90%
92.19%
85.76%
86.90%
60.70%
Borrowings
35
Figure in Million
D. CREDIT QUALITY
2013
2012
Non performing/classified loans (NPLs)
2011
2010
2009
1,918
1,553
997
1,068
1,485
Specific Provision
46
438
460
367
279
General Provision
121
107
103
89
59
NPL to total loans and advance
14.68%
12.87%
9.56%
13.18%
23.74%
E. TRDE BUSINESS METRIC
2013
2012
2011
2010
2009
Export
3225.4
3058
2219
1200
1021
Import (LC)
5095.4
5426
7389
4404
3513
Guarantee
357
387
519
101
104
Remittance
521.9
360
183
102
13
F. EFFICIENCY/PRODUCTIVITY RATIOS
2013
2012
2011
2010
2009
Return on average equity (ROE)
0.61%
4.34%
3.11%
2.94%
4.13%
Return on average assets (ROA) (PAT/average assets)
0.08%
0.52%
0.40%
0.40%
0.45%
Cost to income ratio (Operating expense/Total Revenue)
81.82%
66.10%
44.60%
47.30%
41.20%
Yield on advance (average)
14.47%
15.93%
15.32%
8.01%
Cost of deposits (average)
13.56%
9.60%
7.80%
5.58%
Net interest margin (NII/Average interest bearing assets)
1.53%
3.80%
5.79%
4.24%
7.40%
Cash reserve ratio (daily basis)
6.31%
6.18%
6.43%
6.39%
8.96%
Statutory liquidity reserve ratio
29.80%
20.71%
19.94%
20.29%
22.56%
Operating profit per employee
0.22
0.44
0.73
0.59
0.63
Operating profit per branch
3.73
7.89
16.63
13.00
11.52
36
Financial Growth
Assets
Shareholder's Equity
2,500
2,450
2,000
1,955
1,500
1,739
1,558
350
300
250
200
Deposit
327
233
222
215
150
1,000
943
100
500
102
50
2009
2010
2011
2012
2009
2013
Loans & Advances
1,400
1,200
1,133
1,000
800
600
400
200
1,225
1,306
827
2010
2011
2012
2011
2012
20
18
16
14
12
10
8
6
4
2
17
18
2009
2013
2010
2011
2012
1,561
1,388
1,219
761
500
450
400
350
300
250
200
150
100
50
280
195
147
71
600
543
400
300
306
323
510
440
2012
2013
50
52
250
500
2011
60
300
739
2010
Inward Remittance
350
700
2013
2013
Export
800
2012
2011
474
2009
Import
2010
Investment
9
4
1,974
2009
2013
Fixed Assets
626
2009
2010
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
40
222
200
36
30
150
351
200
100
100
50
102
20
120
18
10
10
1
2009
2010
2011
2012
2013
2009
2010
2011
2012
2013
2009
2010
2011
2012
2013
37
Operating Performance
Net Interest Income
Non-Interest Income
9
60
60
41
33
31
20
2010
2011
2012
Operating Expenses
66
59
50
40
40
30
29
20
10
20
2009
2010
2011
2012
50
45
40
35
30
25
20
15
10
5
2013
0.40%
0.52%
0.45%
0.40% 0.40%
0.30%
0.20%
0.10%
0.68%
0.00%
2009
38
2010
2011
2012
2013
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
27
15
18
10
5
2010
2011
2012
12
7
2009
2013
2010
2011
2012
2013
Net Profit after Tax

12
50
10
10
8
33
30
29
6
4
13
6
4
2
2
2010
2011
2012
2013
2009
Return on Equity
0.60%
32
20
2009
Return on Assets
0.50%
Operating Prifit
70
60
2009
2013
30
25
4
3
2
1
10
2009
6
5
40
35
35
8
7
50
30
Investment Income
2010
2011
2012
2013
Earning per Share

6.00
4.34%
4.13%
5.00
4.00
2.94% 3.11%
5.09
4.49
3.00
3.18
3.51
2.00
1.00
1.01
0.61%
2009
2010
2011
2012
2013
2009
2010
2011
2012
2013
Stakeholder's Informantion
Management Efficiency
20%
250
17.70%
200
217
13.94%
14%
76%
2,000
74%
71.89%
12%
168
150
1,500
100
1,000
72%
70%
7.71%
8%
68%
66.93%
6%
1,974
1,263
1,886
1,258
2%
1,750
500
1,223
99
50
1,620
66.19%
4%
1,306
10%
78%
75.49%
219
16%
2,500
17.44%
18%
66%
64%
62%
60%
0%
Mar-13
Jun-13
Sep-13
NPL Amount
Dec-13
Mar-13
NPL Ratio
600
Jun-13
Deposit
35%
Sep-13
Advance
Dec-13
AD Ratio
140
6.35%
6.31%
29.80%
500
30%
120
25%
100
20%
80
15%
60
10%
40
5%
20
6.30%
6.27%
25.02%
23.18%
400
6.25%
19.69%
6.20%
6.16%
300
6.10%
169
111
100
99
102
98
91
6.05%
89
552
352
324
313
377
309
371
282
200
100
6.15%
6.08%
0%
Mar-13
SLR Required
Jun-13
Sep-13
5.95%
Mar-13
Dec-13
SLR Maintained
6.00%
Ratio
Jun-13
CRR Required
2,500
Sep-13
CRR Maintained
Dec-13
Ratio
16%
14.28%
14%
2,000
12%
10.92%
10%
1,500
8%
7.49%
7.74%
1,000
6%
152
1,885
150
2,028
194
1,944
1,778
4%
500
269
2%
0%
Mar-13
RWA
Jun-13
Sep-13
Eligible Capital
Dec-13
CAR
39
The banks' overall objective is to deliver optimum value to its customers, employees, government and the
shareholders. To achieve this objective, BCBL formulates its strategy and takes necessary initiatives for effective
strategy implementation. Economic Impact Report provides the value that BCBL delivered in 2013 to its employees,
government and shareholders.
VALUE ADDED STATEMENT
Value Added Statement shows how much value has been created and distributed in 2013 by BCBL to its employees,
government and shareholders in the form of salary & allowances, income tax and dividend respectively.
in million BDT
VALUE ADDED STATEMENT
2013
Particulars
Consotidate
2012
Bank
In %
Consotidate
Bank
In %
Income from banking services
2,604.69
2,533.55
2,301.28
2,176.59
Less: Cost of services & supplies
2,058.25
2,032.52
1,646.30
1,562.29
546.44
501.03
654.98
614.30
62.52
47.32
127.38
123.48
483.92
453.71
527.60
490.81
389.93
372.53
82.11%
330.31
313.83 63.94%
Government as Income Tax
73.99
63.68
14.04%
84.69
75.77 15.44%
Statutory Reserve
16.24
16.24
3.58%
35.40
35.40
Retained earnings
3.76
1.26
0.28%
77.20
65.82 13.41%
Value Added by Banking Services

Non-banking income
Provision for loans & other assets
Wealth creation
Wealth distribution
Employees as salaries & allowances
40
7.21%

ECONOMIC VALUE ADDED STATEMENT
Economic Value Addition (EVA) indicates the true economic profit of the company. EVA finds value in amount that
exceeded or fell short of the expected/required amount of return for shareholders. Shareholders are always
conscious about their return on capital invested and similarly BCBL is highly concerned for creating higher value to
the shareholders.
in million BDT
2013
2012
Particulars
Consolidate
Bank
Consolidate
Bank
Shareholders' equity
3,279.13
3,273.16
2,331.81
2,328.34
Add: Accumulated provision for loans &

advances and other assets
1,128.37
1,113.18
599.31
595.42
4407.50
4386.34
2,931.12
2,923.76
2,805.47
2,800.75
2,887.26
2,875.01
Profit after tax
20.00
17.50
112.6
101.21
Add: Provision for loans & advances and

other assets during the year
62.52
47.32
97.38
93.48
Less: Written off loans during the year
(3.77)
(3.77)
(75.8)
(75.8)
0.14
0.14
134.18
118.89
387.15
386.50
13.80%
13.80%
Capital charge (Cost of average equity)
(308.41)
(325.45)
398.44
396.75
Economic Value Added
3,279.13
3,273.16
(264.26)
(277.86)
Capital Employed (Average Shareholders' equity)

Earnings
Total Earning
Average cost of equity (Based on weighted average
rate of 10 years treasury bond issued by the
Bangladesh Government) Plus 2% risk premium
41
Report on
Corporate Governance
Conceptual Framework
Corporate Governance is a framework of principles, rules, processes and practices within an organization with the
objective to ensure accountability, fairness and transparency in the operations and relationship among the
stakeholders in terms of authority, responsibilities, rights and obligations. Corporate Governance establishes the
system of reconciling the conflicting interests of stakeholders in accordance to their duties, privileges & roles and also
the procedures for effective supervision, monitoring and control through internal check and balances. Good corporate
governance is a must for any organization to run its' operation in sustainable manner and eventually achieve the
ultimate goal or objective.
Corporate Governance practices at BCBL

The management of BCBL is committed to protect interest of all concerned stakeholders and accordingly put best
effort to establish good governance and a compliance culture within the organization. As a banking company it is also
directed by Bangladesh Bank with certain governance practices. BCBL has developed and established clear
guidelines on the authority, roles and responsibilities of Board of Directors, different management committees and
key management officials including MD &CEO. It has strong internal control system where adequate number of
policies, rules, procedures, processes and guidelines are practiced and also monitored by an independent function
on a continuous basis. With these BCBL has set the standard and ensured the transparency and accountability to
safeguard the interest of its stakeholders.
Structure and Resposibilities of the Board

The BCBL Board of Directors consists of eleven (11) members. All the board members are highly competent in terms
of academic and professional qualification and experiences. Board takes the strategic decisions and monitors the
effectiveness of strategy implementation. As part of this, our Board approves the business plan & budget and review
the execution on monthly basis. All significant internal policies, procedures and guidelines are approved by the Board
and adopted by the management. Management carries out operations within the guidelines and limits approved by
board. In addition to these, Board reviews the compliances with guidelines issued by the regulatory bodies on regular
basis.
Board meetings and attendance

The Board meeting of BCBL is held on a regular basis, usually once in every month. However, emergency meetings
are called as and when required. Meeting agendas are fixed and all relevant information, references and detailed
working papers are communicated with the Board members well before the date of meeting. At the meeting,
management presents and discusses with more insights, addresses Director's query and provides additional
information as required for consideration of the matter by the Board.
42
Corporate Governance Report

During the year 2013, total twenty one (21) Board Meetings were held; the attendance records of those meetings are
as follows:
Sl
Name
Total
Meeting
Held
No. of
Meeting
Attended
No. of
Meeting
Absent
20
20
21
17
Leave granted
21
21
20
14
Leave granted
20
19
Leave granted
21
14
Leave granted
Mr. Rana Kaiser
21
08
Leave granted
Mr. Manwar Hossain
21
12
Leave granted
Mr. Anis Ahmed
21
04
Leave granted
10
21
18
Leave granted
11
05
05
The Directors who could not attend the meeting(s) were granted leave of absence by the Board.
Ownership Composition
As on 31 December 2013 the shareholding composition among different category is given below:
Sl Category
01.
KA
Name of Holders
The Government of The People's Republic of Bangladesh
KHA
03.
GA
% of Holding
6,750,000
33.94
0.00
Three State Owned Bank ( Sonali, Janata & Agrani bank ltd.)
2,249,982
11.32
Govt. Owned Corporate Bodies
1,024,613
5.15
Depositors and Other Private Shareholders
9,862,825
49.59
19,887,428
100.00
Sponsors as per MoA & AoA

02.
No. of Shares
Total
43
Directors Shareholding Status

Shareholding structure of directors as on 31st December 2013 is as follows:
Sl
Name
Designation
Share Held
as on
31.12.2013
Chairman
Appointed on
09/01/2013
Remarks

(Govt. Nominated)

(Govt. Nominated)
Director

(Govt. Nominated)
Director

(Govt. Nominated)
Director
Appointed on
20/01/2013

(Govt. Nominated)
Director

(Govt. Nominated)
Director
Released on
18/12/2013
Mr. Rana Kaiser
Director
32,400
Retired & Reelected 13AGM on

07-10-2013
Mr. Manwar Hossain

(Representative of the City Gen. Ins. Co. Ltd.)
Director
125,494
Mr. Anis Ahmed
Director
1,362,139
10

(Representative of the Sunflower Life Ins. Co. Ltd.)
Director
Managing
Director & CEO
Date of Joining
02/10/2013
Appointment of External Auditor

The Board of Directors of BCBL in its' 15th AGM appointed ACNABIN & Co. Chartered Accountants as the statutory
auditors for the year 2013.
Services not Provided by External Auditors

We hereby declare that ACNABIN & Co., Chartered Accountants involved in statutory audit, was not engaged in any
of the following services for BCBL during 2013:
Appraisal or valuation services or fairness opinions.
Financial information system design and implementation.
Book keeping or other services related to accounting records or financial statements.
Broker-dealer service.
Internal audit services.
No partner or employees of the ACNABIN & Co., Chartered Accountants, possesses any share of BCBL during the
tenure of their audit assignment.
44
Highlights on Central Bank Inspections

Bangladesh Bank carried out comprehensive inspection on BCBL banking operations of Principal Branch, Bangshal
Branch, Agrabad Branch and Dewanhat Branch office during 2013. They submitted their detailed inspection report to
BCBL and those were placed to the Audit Committee of the Board for their review and comments. All the findings of
the inspections were discussed in the meetings and potential risk and mitigation plans were decided as per the
recommendations of the report. The reports were finally submitted to the Board for their review and comments. The
Board took the observations and instructed the management to comply with the recommendations made by
Bangladesh Bank for improvement. Bangladesh Bank also conducted other relevant audits on different functions of
BCBL throughout the year.
Board Committees
To ensure good corporate governance, Bangladesh Bank issued a circular (BRPD Circular No 11 dated 27 October
2013) through which it restricted banks to form more than three committees or sub-committees of the Board. In
compliance with the directive BCBL has three committees namely Audit Committee, Executive Committee and Risk
Management Committee as the sub-committee of Board to oversee and direct the operations, performance and
strategic direction of the Bank.
Audit Committee
BCBL established an Audit Committee as a sub-committee of the Board of Directors in accordance with the
Bangladesh Bank's directive vide circular # 11 dated 27 October, 2013. The Committee is constituted with four
members of the Board of Directors. The Company Secretary is working as Member Secretary of the committee. The
objective of this committee is to work as a sub-committee of the Board in overseeing and monitoring overall internal
control system and the financial reporting process to ensure that the financial statements reflect true and fair view of
the state of affairs of the company. Accordingly, Board clearly defined the roles and responsibilities of the committee
to carry out its overseeing function in an effective manner.
Composition of Audit Committee

Name of Directors
Designation
Chairman
Member
Mr. Rana Kaiser
Member
Member
In 2013 Audit Committee held three (3) meetings where committee reviewed different issues related to company's
risk management, internal control system and periodic financial statements. Key officials as relevant to the matters
discussed were present in the meeting as required by the Committee. All meeting proceedings including the
discussions and recommended action items of the Audit Committee were properly documented and reported to the
Board of Directors. The meeting attendance of the committee members are shown below:
Sl
#
Name
Total Meeting
Held
No. of Meeting
Attended
No. of Meeting
Absent
Leave granted
Mr. Rana Kaiser
Leave granted
45
Executive Committee (EC)

Executive Committee of BCB is comprised of 6 (Six) Directors from the Board. This committee has been formed as a
sub-committee of the Board entrusted with following roles and responsibilities.
Review the policies and guidelines issued by Bangladesh Bank for credit and other banking operational
issues.
Ensure effective implementation of the policies and guidelines
Review, appraise and approve the credit proposals including any restructure, revision or amendment in
respective credit proposal.
Ensure due diligence of the credit policy and risk management at the appraising credit proposal.
Composition of Executive Committee

Name
Designation
Chairman

Member
Member
Member
Mr. Manwar Hossain
Member
Mr. Anis Ahmed
Member
Managing Director & CEO
* The directorship of Mr. Pradip Kumar Dutta was expired as on 18.12.2013.

* The last EC meeting conducted on 10.05.2012
During the year 2013, no EC meeting has been held because as the Board Meetings were held on regular basis.
Separation of Chairman and Chief Executive Officer Roles

In accordance with Bangladesh Bank BRPD Circular No. 11 dated 27 October 2013, there are clear divisions among
the roles and responsibilities of the Chairman and Managing Director & Chief Executive Officer.
The Chairman of the Board is not engaged in any execution and as per Bangladesh Banks' guideline he ensures no
participation in or interference to the administrative or operational and routine affairs of the Bank. As the Chairman he
approves the board agenda and convene Board meeting supported by the Managing Director and the Company
Secretary. Regular agenda items include approving credits beyond CEO's authority and aspects of the Bank's
corporate strategy, financial performance, core risks and credit policy, corporate governance, CSR and organizational
structure, human resources policy, customer and services strategies, procurement policy. Chairman ensures that the
Board sets and implements the Bank's direction and strategy effectively.
On the other hand, Managing Director & CEO as the head of executive management team is accountable to the
Board and responsible to carry out day to day business operation in compliance with relevant policies, procedures
and strategies established by the Board and rules, regulations and guidelines from the Central Bank and other
regulatory authorities. Managing Director is also responsible to ensure effective internal control system within the
operation to safeguard the interest of all concerned stakeholders.
Responsibilities of the Chairman of the Board

To set out the following responsibilities, BRPD Circular No. 11 dated 27 October 2013 issued by Bangladesh Bank
and Corporate Governance Notification issued by BSEC on 07 August 2013 has been taken into consideration.
46
Our Team
Abu Sadek Md. Sohel
Deputy Managing Director

Dr. Muhammad Asaduzzaman
Executive Vice President

Mr. M. Ebadat Hossain
Mr. S. M. Jahangir Akhter
Mr. Sagir Ahmed

Mr. Md. Shamsuddin Ahmed
Senior Vice President

Mr. Nazmul Karim Siddique
Mr. S.M. Waliullah
Mr. Md. Shafiqul Islam
Mr. Afzal Hossain Khan
Mr. Md. Mamtaz Uddin Maishan
Mr. Md. Salim Hasan

Mr. K.M Ashraf Hossain
Mr. Md. Abul Hossain
Mr. Md. Abdur Rahim Miah
Mr. Md. Afzalur Rahman
Mr. Md. Mukhlesur Rahman
Vice President
Mr. Md. Selim Ahmed
Mr. Ehsan Ahmed Rouf
Mr. Anis Uddin Ahmad
Mr. S.M. Reazur Rahman
Mr. H.M. Abul Kalam Azad
Mr. Md. Kamruzzaman Akhand
Mr. Md. Abdul Halim
Mr. Dewan Mohammad Moniruzzaman
Mr. Ali Azam Chowdhury

Mr. Sudatta Shebok Barua
Mr. Md. Shahadat Hossain
Mr. Sarwar Md. Shahidullah
Mr. Md. Mizanur Rahman Chowdhury
Mr. Md. Muziburn Rahman Khan
Mr. Md. Abdul Karim
Mr. Panu Ranjan Dus
Mr. Mohammad Saiful Islam, FCMA
Senior Asstt. Vice President

Mrs. Qamrun Nahar Begum
Mr. Md. Enamul Haque
Mr. A.B.M. Ruhul Amin Mia
Asstt. Vice President

Mr. Kabir Ahmed
Mr. Nizamuddin Ahmed
Mr. Abdul Munim Chowdhury
Mr. Mahabub Morshed
Mr. Zia Uddin Ahmed
Mr. Md. Syed Salahuddin
Mr. Sheikh Akhterul Habib
Mr. Md. Abu Sayed

Mr. Kazi Md. Abul Kashem, FCMA
Mrs. Nargis Fatema
Mr. Md Farid Hasan
Mr. Md. Mobaraq Hossain
Mr. Tazul Islam
Mr. Md. Zillur Rahman
47
Management Team
Management committees of BCB
To ensure effective structure of corporate governance and to carry out daily operations to the best interest of the
stakeholders BCBL has constituted different management committees apart from its functional departments.
Management Committee (MANCOM)
MANCOM has been formed under the leadership of MD & CEO besides Deputy Managing Director and all Divisional
Heads are the member of the committee. It is considered the highest decision and policy making authority of the
Bank which consists of the CEO and different business and support unit heads.
Scope of the Committee
Set or review vision, mission and strategic planning in achieving business objectives and effective discharging
of management responsibilities.
Strategic and tactical decisions relating to business, credit, operations, administration, Human Resource,
internal and financial control and compliance etc.
Regular business review and analysis of financial performance of the Bank.
Review and discuss policies and procedures of the Bank and recommend necessary changes to the Board.
Review periodic employee performance appraisal and promotions.
Discuss and approve Budget before forwarding to the Board.
Acting Managing Director can preside over the MANCOM meeting in absence of MD.
Consider and propose innovative projects, products and services as well as management methodology and
business strategies to the Board of Directors .
Composition of Management Committee (MANCOM)
Member
Managing Director
Designation
Chairman
Member
All Divisional Head (Head Office)
Member
Board Secretary
Member Secretary
Risk Management Committee

BCB has formed a separate Risk Management Committee as per Bangladesh Bank's guideline. The prime objective
of this committee is to identify and mitigate the risks exposed to bank's regular operation and it's going concern. This
committee has been in place with defined roles and responsibilities documented through TOR and duly approved by
the Board. The responsibilities of this committee are as follows:
Develop a risk aware culture within the organization, review and approve risk management strategies,
policies, guideline and framework for BCB.
Supervise and monitor the capital management functions of the bank in harmonization with capital adequacy.
Examine market conditions and take proactive measures to safeguard and mitigate risks with regards to
bank's investment.
Carry out periodic stress test with a view to eliminate lapses gradually in the course of business everyday.
Ensure adequate resources, infrastructure and systems are in place so that risk management functions can
be carried in an effective manner.
48
Management Team
Composition of Risk Management Committee

Name
Official Designation
Committee Position
Chairman
Mr. M. Ebadat Hussain
Member
Member
Mr. K.M. Ashraf Hossain
Member
Member
Mr. Md. Abdul Halim
Vice President
Member Secretary
Mr. Ehshan Ahmed Rouf
Vice President
Member
Vice President
Member
Mr. Md. Abdul Karim
Vice President
Member
Mr. Panu Ranjan Das
Vice President
Member
Asset Liability Committee (ALCO)

ALCO has been formed with the objective to manage liquidity and related risks by setting out strategies and
revamping previously taken strategies as necessary.
Scope of ALCO
Measuring overall risk appetite of the bank both in banking book and in trading book.
Measuring and monitor liquidity position of the bank in various time buckets and taking strategic and
proactive actions to meet the requirements.
Monitoring the interest rate risk of the bank and taking actions to keep the interest rate gap at the desired
level.
Monitoring the movement of macro variables and yield curve shift and taking strategy for short, mid and long
term interest rate risk management.
Keeping the balance sheet mix at desired level for Main Operation and OBU.
Measuring and monitoring concentration risk, diversification and product profitability
Composition of Asset Liability Committee (ALCO)

Committee Member(s)
Designation
Rank
Chairman
Member
SVP, SME Division
Member
SVP, Treasury Division
Member Secretary
VP, Credit Management Division
Member
VP, Trade Division
Member
VP & CFO, Financial Administration Division
Member
Mr. Md. Salim Hasan

Mr. Panu Ranjan Das
Mr. Md. Saiful Islam
49
Management Team
Business & Investment Committee
BCB Business & Investment Committee has been formed with ten (10) members under the leadership of Managing
Director as the Chairman of the Committee. This committee oversees the investment in capital market and meets as
and when required. They continuously monitor to ensure that the investment decisions are carried out as per
approved strategy and investment policy. This committee regularly monitors our 'Holding of Shares' and 'Capital
Market Exposures' and ensures keeping investments within prescribed limit (currently 10% of total liabilities)
stipulated by Bangladesh Bank.
Composition of Business & Investment Committee

Committee Member(s)
Designation
Rank
Chairman
CEO (CBSIL)
Member
EVP, Human Resources Division
Member
SVP, Treasury Division
Member
VP, Credit Management Division
Member
VP, Trade Division
Member
EO, Investment Divison
Member Secretary

Mr. M.A. Motalib Chowdhury

Mr. Panu Ranjan Das
Ms.Rokeya Begum
Purchase Committee (PC)

The eight members Purchase Committee (PC) have been formed under the leadership of Head of Human Resources
Division as the committee chairman. The committee consists of members from different Divisions including Financial
Administration, Company Secretarial & Legal Affairs, Recovery Division, General Services Division and IT to monitor
and ensure efficacy of spending.
Scope of PC
The main objective of this committee is to ensure optimum value for money through carrying out the Board approved
procurement in compliance with the policy and guidelines. The scopes of the committee activity are as follows:
Recommends the lists of vendors for annual enlistment after thorough market survey and investigation of
submitted documents and physical visit of vendors' facilities.
Endorse the list of potential bidders, opens the submitted bids/quotations, evaluates and recommends the
vendors considering price and quality of the goods and services.
Ensures governance in the area of procurement through carrying out the procurements in compliance with the
policies and regulatory requirements.
Composition of Purchase Committee

Committee Member(s)
Mr. Shamsuddin Ahmed
Mr. Md. Salim Hasan
Mr. K.M. Ashraf Hossain
Mr. Md. Mukhlesur Rahman
Mr. Ehsan Ahmed Rouf
Mr. Enamul Hoque
50
Designation
Rank
EVP, Human Resources Division
Chairperson
EVP, Financial Administration Division
Member
EVP, Human Resource Division
Member
SVP, SME Division
Member
SVP, Recovery Division
Member
SVP, General Service Division
Member
VP, ICAD
Member
SAVP, General Service Division
Member Secretary
Corporate Social Responsibility (CSR)

BCB believes that a company culture based on core values not only helps our business but also defines the role that
we can and should play in society.
We identify and act upon new opportunities to apply our support and expertise to societal problems/
enhancement.
We scale our existing programs and initiatives to achieve maximum benefit.
We empower our employees and others to serve their communities.
We integrate corporate citizenship and social responsibility into every aspect of our company.
BCB has always been a dedicated corporate entity with regards to contributing towards fulfilling its social
commitments. Over the years it has been relentless in its pursuit for social and economic development. Its inherent
ethical standards help it to ensure sustainable growth in business and provide a platform from which it benefits its
employees, environment, stakeholders, different communities and general public. Social responsibility in combination
with moral ethical and international standards gives the company a pedigree that only few of its kind can share. It
belongs to the very elite of the society and corporate community where it leaves a mark of positive contribution for the
ultimate benefit of the nation as a whole. CSR is titled to the organization's mission as well as a guide to what the
company stands for and will uphold to its consumers.
Strengthening and developing our communities is vital to helping our business prosper. Across the footprint in 2013,
the bank's provided BDT 2.42 million to programs that offer services in the areas of Education, Health, Culture and
Natural Resources.
Sl.
1
2
3
4
5
Area
Education
Health
Culture
Natural Disaster
Others
Total
Amount
0.52
0.95
0.12
0.72
0.11
2.42
Recognizing human resources as the most important asset, we have established a competitive and enabling working
environment to help employees perform their best. The Bank offers a competitive pay package and bonus that are
reviewed on continuous basis in line with market dynamics. It offers to its employees handsome retirement benefit.
Being a responsible corporate, BCB paid all Tax and Levies on time. Company ensures the withholding tax, Value
Added Tax, from employees' salary as well as payments to customers and vendors. BCB also deposit the Customs
Exercise Duty on regular basis. During the calendar year 2013 we contributed BDT 249.02 million to national
exchequer by this below manner:
Sl.
1
2
3
4
5
52
Area
Corporate Tax
Tax Deducted at Source
Value Added Tax
Withholding Tax
Excise Duty
Total
Amount
197.40
5.66
42.62
2.91
0.43
249.02
Management review of Business

Banking industry had been through a challenging year in 2013 as number of banks started their journey and due to
political instability country experienced sluggish growth in private sector investment. To confront those challenges
bank has to take business strategy. Both global and local economic scenario had impact on those business strategy.
Global Economic outlook 2013
The world economy had a good 2013. Of course for many it was still a struggle, with the eurozone in recession for
much of the year and living standards in most of the developed world still below their 2007 peak. But by the end, even
the laggards had started to catch up, and for them the long nightmare of recession and its aftermath began to recede.
There are two great stories in the world economy: the structural shift from the developed world towards the emerging
world; and the cyclical climb out of a nasty recession. The first continued last year, but at a slightly slower pace than
before. Growth in China, at 7.5 per cent, might seem breathtakingly fast, but actually it's the slowest for 23 years.
Things also slowed in India, to a little below 5 per cent, again fast by our standards, but slow when compared to the
past. Africa, encouragingly, grew by more than 5 per cent.
In 2013, central banks in the U.S., Japan and Europe showered money on their economies, held interest rates low and
promised to continue to do so in a bid to animate a recovery that remains tepid almost five years after the worst
recession since the Great Depression. In emerging markets such as Brazil and India, domestic demand softened and
exports sagged as rates were boosted to stem inflation. Despite the contrasting fortunes, the overall global economy
appeared to be on a surer footing as the year ended. The International Monetary Fund forecasts that world output will
grow 3.6% in 2014, compared with a 2.9% estimate for 2013.
The global economy has struggled to sustain economic momentum since the recent global recession. Emerging
economies continue to expand, but growth has moderated. The debt crisis and mitigating responses across European
nations continue to evolve and actions to contain debt have, in many cases, curtailed growth. In the United States
(U.S.), a host of unresolved political and fiscal issues have undermined business and consumer confidence, which in
turn curbed investment, employment and Gross Domestic Product (GDP) growth. This has required central bankers to
maintain very aggressive monetary policies. Overall, global growth is expected to be moderate in 2013. Expectations
are currently lower than they were earlier in the year due mainly to poorer than anticipated performance in the U.S.
and China, the two largest economies. Nonetheless, indicators point to some strengthening in the second half of the
year in these countries. The OECD's composite leading indicators for September 2013 signal improvements in growth
for most advanced economies and China. The International Monetary Fund's (IMF) October 2013 forecast pegs global
economic growth at 2.9% (see table), down from 3.1% in July's forecast and 3.5% in January's forecast. This latest
IMF forecast places growth below that recorded in 2012 (3.2%). World GDP growth is forecast to accelerate in 2014 as
issues in the U.S. are expected to be resolved and most countries within the European Union (EU) begin recovery.
2013
3.2
2.9
2014f
3.6
Brazil
0.9
2.5
2.5
India
3.2
3.8
5.1
Russia
3.4
1.5
3.0
Chaina
7.7
7.6
7.3
Canada
1.7
1.7
2.4
USA
2.8
1.5
2.6
Japan
2.0
2.0
1.2
Australia
3.7
2.5
2.8
European Union
-0.3
0.00
1.3
United Kingdom
0.2
1.4
1.9
Euro Area
-0.6
-0.4
1.0
Germany
0.9
0.4
1.4
France
0.0
0.2
1.0
Spain
-1.6
-1.3
0.2
Italy
-2.4
-1.8
0.7
GDP Growth (%)
2012
World
*f=forecasted
53
Management Review of Bisuness
Bangladesh Economic Scenario

Bangladesh maintained on an average 6 percent GDP growth over the last one decade. The country achieved 6.71
percent growth in FY 2010 - 11, the highest growth rate achieved during recent times. According to the provisional
estimate of Bangladesh Bureau of Statistics (BBS), Bangladesh attained 6.01 percent growth in 2012-13 despite
slowing down of the global economy. In FY2012-2013 private sector credit growth and import growth deteriorated
severely while the export and remittance is keeping our hope.
Indicators
FY10
FY11
FY12
FY13
GDP Growth
6.07%
6.71%
6.32%
6.01%
Private Sector Credit Growth
24.20%
25.80%
19.70%
10.90%
Import Growth
5.4%
52.1%
2.4%
0.8%
Export Growth
4.2%
39.2%
6.2%
10.7%
Remittance Growth
11.4%
6.0%
10.2%
12.6%
Bangladesh Banking Sector

Banking sector in Bangladesh passed somewhat a moderate year in terms of governance, profitability and
soundness in 2013. Continued setback suffered by some major sectors in the economy i.e. textiles, ship-breaking,
real estate and commodity trading and lackluster performance of the capital market put pressure on banks' liquidity,
asset quality and profitability. Effective from December 2013, the stricter regulation from BB related to loan
classification and rescheduling affected the volume of classified loans, raised the requirement of provision and
thereby decreased the amount of distributable profit.
Indicators
FY9
FY10
FY11
FY12
FY13
Capital Adequacy Ratio
11.67%
9.31%
11.35%
10.46%
11.52%
NPL Ratio (Gross)
9.21%
7.27%
6.12%
10.03%
8.93%
ROA
1.37%
1.78%
1.54%
0.64%
0.90%
ROE
21.72%
20.97%
17.02%
8.20%
10.77%
Deposit (BDT in Crore)
278622
336845
410444
490022
572890
Advances (BDT in Crore)
214218
264182
326634
387804
428315
Investment (BDT in Crore)
49091
56405
74799
95427
134861
Weighted Avg. Deposit Rate
7.01%
6.01%
7.27%
8.15%
8.54%
Weighted Avg. Advance Rate
11.87%
11.31%
12.42%
13.75%
13.67%
Spread
4.86%
5.30%
5.15%
5.60%
5.13%
Bangladesh Economic Scenario

Bangladesh maintained on an average 6 percent GDP growth over the last one decade. The country achieved 6.71
percent growth in FY 2010 - 11, the highest growth rate achieved during recent times. According to the provisional
estimate of Bangladesh Bureau of Statistics (BBS), Bangladesh attained 6.01 percent growth in 2012-13 despite
slowing down of the global economy. In FY2012-2013 private sector credit growth and import growth deteriorated
severely while the export and remittance is keeping our hope.
54

Financial Results for 2013
The strategy of diversified financing, vigilant growth of loan and advance, structured risk management practices,
overall monitoring of compliance of operation management, helped the bank to achieve the business target but due
to the increase of fund cost and sluggish growth of credit bank could not meet the earning target.
The Company has delivered consecutive years of income and profit growth, as we remain disciplined in the execution
of our strategy, with growth underpinned by the diversity of our business across clients and customers, and products.
In 2013 we delivered total operating income of BDT 789.72 million. We also ended the year with strong capital
adequacy ratio of 14.28% percent. This is an important measure of financial strength at December 31, 2013. We
made progress in becoming our customers' oriented bank - their bank of choice.
Deposit
The Bank mobilized a total deposit of Tk. 19,736.16 million as of December 31, 2013 as against Tk. 15, 610.99
million as of December 31, 2012 indicating an increase of 26.42% over the previous year. The competitive interest
rates, deposit mobilization efforts and customers' confidence on the Bank contributed to the growth in deposits during
the year. Our deposit mix for the year 2013 & 2012 compared below:
Deposit Mix 2012
Deposit Mix 2013

5.36%
6.98%
2.70%
3.28%
14.76%
13.96%
77.17%
75.78%
Demand
deposit
Bills
Payable
Savings
& SND
Time
Deposit
Demand
deposit
Bills
Payable
Savings
& SND
Time
Deposit
Loans and Advances

In addition to the global economic crisis in 2013, the banking sector has faced uphill challenges domestically in
connection with inflation rate, export and import, increase government borrowings. Despite of this, the loans and
advances portfolio stood at Tk. 13,063.71 in 2013, against Tk. 12,250.26 million over the 2012. This Loans &
Advances was 6.64% per cent higher than the same was in 2012. The portfolio has been diversified from single
sector to multiple sectors. Our Advance mix for the year 2013 & 2012 compared below:
55
Loans & Advance Mix 2012
41.82%
Loans & Advance Mix 2013
35.54%
36.50%
39.97%
21.92%
20.94%
1.70%
Term
SME & Agri
Demand
1.62%
Contenious
Term
Demand
SME & Agri
Contenious
Profit before Income Tax

The bank earned profit of Tk. 81 million before tax in 2013. Though our bank generated total operating income in
2013 almost equal to the same for 2012, higher Interest expenses and other operating cost resulted in lower profit
before tax in comparison to 2012 which was Tk. 177 million., However, all others income increased considerably and
eventually net profit attributable to shareholders reached to Tk. 17 million which is reduced as bank kept provision for
previous year's tax. Earnings per Share (EPS) stood at Tk. .88.
Total Asset
The Bank's total assets stood at the value of Tk. 24504.15 at the end of 2013 securing an increase of 25.37% in
comparison to the year 2012 which was for Tk. 19544.81 million. A major contribution to this growth was the increase
in loans & advances which jumped by 6.64 % from Tk. 12250 million to Tk. 13064 million. Fixed assets of the Bank
also increase to Tk. 182 million from Tk. 165 million. Bank also had to increase its Investment in Gov. Securities and
others. A comperative asset mix of the bank has shown below:
Assets Mix 2012
Assets Mix 2013

15.02%
9.30%
18.42%
62.68%
14.31%
6.06%
51.15%
8.51%
0.78%
0.84%
1.22%
Cash
Money at Call
Loans & Advances
56
3.14%
1.58%
Investment
Other Assets
Cash
Money at Call
Balance with Other

Bank & Fis
Fixed Assets
Loans & Advances
6.99%
Investment
Other Assets
Balance with Other

Bank & Fis
Fixed Assets
Treasury Operation and Fund management

The objective of this operation is to maximize the liquidity and mitigating its operational, financial and reputational
risk. Our focuses are collections, disbursements, concentration, investment and funding activities. Due to the
dynamics of the changes of the market condition involving liquidity, Interest rate and exchange rate, fund
management has become a important role in the bank. Our treasury functions take an active role in managing the
bank's balance sheet capital-debt and equity the bank has risen to finance its assets.
While the bank treasury performs standard corporate treasury functions such as security issuance, cash forecasting management and financial decision-making and insurance. They ensured the sufficient fund of the bank in normal
and stress condition fulfilling all the conditions.
Total Equity
The Bank's Equity is divided into two parts i.e. Tier-I and Tier-II capital. Tier-I includes Paid-up Capital, Statutory
Reserve, and Retained Earnings. Tier-II includes General Provision on unclassified investments & Off -Balance
Sheet items. The Authorized Capital of the Bank is Tk. 10,000 million and paid-up capital of the Bank is Tk. 1,989
million as on 31.12.2013. Total equity was Tk 3,279 million as on 31.12.2013. Comparative position of Equity for the
year 2013 & 2012 is given below:-
Tier-I capital (Core Capital) :

(Amount in million BDT)
Particulars
Paid up capital
2013
2012
1,989
1,989
39
39
195
179
Surplus / (Deficit) in Profit & Loss Account
113
98
Right Share Application Money
914
Share capital of BCI

Statutory Reserve
General Reserve
Total
3,259
2,314
Tier-II capital (Supplementary):

(Amount in million BDT)
Particulars
General Prvision (1% of Unclassified Loan)
2013
2012
121
107
Revaluation Reserve for HTM Securities
10
General Provision (Off balance sheet)
21
20
152
136
Total
Capital Adequacy
Capital adequacy focuses on the total position of capital held against the requirement as per policy of Bangladesh
Bank and aims at protecting depositors from potential shocks of losses that a bank might incur.
The Bank has adopted Standardized Approach (SA) for computation of capital charge for investment risk and market
risk, and Basic Indicator Approach (BIA) for operational risk. Assessment of capital adequacy is carried out in
conjunction with the capital adequacy reporting to Bangladesh Bank. The Bank has maintained capital adequacy ratio
at 14.28% percent considered solo basis as against the minimum regulatory requirement of 10%. Tier-I capital
adequacy ratio is 13.48% as against the minimum regulatory requirement of 5%. The Bank's policy is to manage and
maintain strong capital Adequacy Ratio through investing high rating grade investment clients.
57

Bank has established Basel-II implementation Unit. A quantitative feature of Risk Weighted Assets (RWA) and
Capital Adequacy for December ended-2013 under Basel-II is furnished hereunder:
Sl.
No.
1.
Particulars
Solo
Tk. (Crore)
Consolidated
Tk. (Crore)
Capital requirement for Credit Risk:

On - Balance sheet
1488.51
1573.39
Off - Balance sheet
145.35
145.35
Capital requirement for Market Risk
129.07
129.07
Capital requirement for Operational Risk
121.45
121.45
Total RWA (Risk Weighted Asset)
1884.37
1969.26
Capital Adequacy Ratio (CAR) [Minimum 10% of RWA or

Tk. 400 crore whichever is higher]
14.28%
13.68%
Core Capital to RWA
13.48%
12.90%
Foreign Exchange Business

Total Foreign Exchange Business handled during the year 2013 was Tk. 885 million as against which was same as
the year 2012. The particulars of Foreign Exchange Business are given below:-
Particulars
Actual as on
31.12.2013
Actual as on
31.12.2012
% growth
over 2012
Import
510
543
(6.08%)
Export
323
306
5.56%
52
36
44.44%
885
885
Remittance
Total
58
Risk Management
Risk is defined as a possibility of loss due to uncertainty. In simple, risk is uncertainty about the outcome or expected
return. Again risk is the probability that an actual return on an investment will be lower than the expected return. It
can't be mitigated entirely but it can be mitigated partially through diversification. Risk is inescapable, that's why risk
must be assessed, addressed, managed and mitigated.
"Financial Risks" are uncertainties resulting in adverse/ unfavorable variation of profitability or outright losses. There
is deviation in what we achieve from what we had planned or what we had expected. This unpredictability of future is
due to uncertainties associated with the steps that we undertake in the process or various external factors that
influence the process that are necessary to achieve our planned objective.
Taking on various types of risk is integral to the banking business. Sound risk management and balancing riskreward trade-offs are critical to a bank's success. Business and revenue growth have therefore to be weighted in the
context of the risks implicit in the bank's business strategy. The identification, measurement, monitoring, and
management of risks accordingly remain a key focus area for the bank.
The risk management policy of the bank operates under the following principal:
Oversight by the Board/ Executive Committee/Board Risk Management Committee. Board approves policies
and processes of risk management which is recommended by the top management and Executive Committee
approves the credit proposals submitted by the top management;
Audit committee of the Board reviews the internal audit reports of the bank and risk management.
Dedicated independent Risk Management Divisions viz Credit Management Division, Credit Recovery Division,
Internal Control & Audit Division, International Division, Treasury Division, Information & Communication
Technology Division, and Money Laundering Risk through Chief Anti Money Laundering Compliance Officer;
Dedicated committee at management level has been set up monitor risk viz. credit risk through Credit Review
Committee, operational risk through Management Committee and Internal Control & Audit Division, Market and
Liquidity risk through Asset Liability Committee (ALCO) and IT risk through IT Division.
Risk Management Process

BCB's risk management process is on a clear understanding of various risks, disciplined risk assessment and
measurement procedures and continuous monitoring. The policies and procedures established for this purpose are
continuously benchmarked with international best practices. The Board of Directors has oversight on all the risks
assumed by the bank. Specific Committees have been constituted to facilitate focused oversight of various risks. Risk
Management process is consists of:
A. Identification.
B. Measurement,
C. Aggregation,
D. Planning and controlling,
E. Monitoring
A. Identification: A bank's risks have to be identified before they can be measured and managed. Typically major
risks are categorized as under:
Credit risk
Market risk
Operational risk
Liquidity risk and
Reputation risk
59
Risk Management
B. Measurement: The consistent assessment of the above mentioned types of risks is an essential prerequisite for
successful risk management. To measure risks there are various types of tools and techniques.
C. Aggregation: When aggregating risks, it is important to take into account correlation effects which cause a bank's
overall risk differing from the sum of the individual risks. This applies to risks both within a risk category as well as
across different risk categories.
D. Planning and Controlling: Furthermore, risk management is the function of planning the bank's overall risk
position and actively managing the risks based on these plans.
E. Monitoring: Risk monitoring is used to check whether the risks actually incurred lie within the prescribed limits,
thus ensuring an institution's capacity to bear these risks.
Stress Testing
Stress testing is a simulation risk management tool, which are used to determine the reactions of different financial
institutions under a set of exceptional, but plausible assumptions through a series of tests. At institutional level, stress
testing techniques provide a way to quantify the impact of changes in a number of risk factors on the assets and
liabilities portfolio of the institution.
Stress testing for credit risk assesses the impact of increase in the level of non-performing loans (NPLs) of the banks.
This involves several shocking events. Each shocking event contains Minor, Moderate, and Major levels of shocks.
Performing loan directly downgraded to B/L: Sectoral Concentration 1: It is a measure of the concentration risk
where the bank has the largest investment. It assumes that 3%, 9%, and 15% of the performing loan will be directly
downgraded to B/L category in minor, moderate, and major levels of shock respectively. Capital Adequacy Ratio
(CAR) of BCB will be 16.86%, 16.33%, and 15.79% in minor, moderate, and major levels of shock respectively when
considering individual shock.
Performing loan directly downgraded to B/L: Sectoral Concentration 2: It is a measure of the concentration risk
where the bank has the largest investment. It assumes that 3%, 9%, and 15% of the performing loan will be directly
downgraded to B/L category in minor, moderate, and major levels of shock respectively. Capital Adequacy Ratio
(CAR) of BCB will be 16.99%, 16.70%, and 16.42% in minor, moderate, and major levels of shock respectively when
considering individual shock.
Increase in NPLs due to default of Top large loan borrowers: It represents the scenario of the bank when top
large borrowers default. It assumes that 3, 7, and 10 borrowers of the bank will default in minor, moderate, and major
levels of shock respectively. Capital Adequacy Ratio (CAR) of BCB will be 11.91%, 8.43%, and 6.98% in minor,
moderate, and major levels of shock respectively when considering individual shock.
Negative shift of NPLs categories: It represents the shift of a loan from one NPL category to the next NPL
category. It is based on the assumption of 5%, 10%, and 15% downward shift in the NPLs categories in minor,
moderate, and major levels of shock respectively. Capital Adequacy Ratio (CAR) of BCB will be 16.90%, 14.70%,
and 14.20% in minor, moderate, and major levels of shock respectively when considering individual shock.
Decreased in the Forced Sale Value (FSV) of the collateral: It represents the bank's condition when FSV of
collateral decreases sharply. It is based on the assumption that FSV of collateral will fall by 10%, 20%, and 40% in
minor, moderate, and major levels of shock respectively. Capital Adequacy Ratio (CAR) of BCB will be 16.90%,
16.67%, and 16.20% in minor, moderate, and major levels of shock respectively when considering individual shock.
Interest rate shock: It represents condition of the bank when interest rate changes significantly. It is based on the
assumption that interest rate will change by 1%, 2%, and 3% in minor, moderate, and major levels of shock
respectively. Capital Adequacy Ratio (CAR) of BCB will be 16.97%, 16.82%, and 16.66% in minor, moderate, and
major levels of shock respectively when considering individual shock.
Foreign exchange shock: It represents condition of the bank when exchange rate changes significantly. It is based
on the assumption that exchange rate will change by 5%, 10%, and 15% in minor, moderate, and major levels of
shock respectively. Capital Adequacy Ratio (CAR) of BCB will be 117.13%, 17.13%, and 17.13% in minor, moderate,
and major levels of shock respectively when considering individual shock.
Equity shock: It represents condition of the bank when market value of share falls sharply. It is based on the
assumption that share price will change by 10%, 20%, and 40% in minor, moderate, and major levels of shock
respectively. Capital Adequacy Ratio (CAR) of BCB will be 16.79%, 16.44%, and 15.75% in minor, moderate, and
major levels of shock respectively when considering individual shock.
60
Market Discipline
Disclosures on Risk Based Capital (Pillar III of Basel-II)
For the year ended 31 December 2013
Background: These disclosures under Pillar III of Basel II are made according to revised'Guidelines on Risk Based
Capital Adequacy (RBCA)' for banks issued by Bangladesh Bank (Central Bank of Bangladesh) in December 2010.
These quantitative and qualitative disclosures are intended to complement the Minimum Capital Requirement (MCR)
under Pillar I and the Supervisory Review Process (SRP) under Pillar II of Basel II. The purpose of market discipline
in the Revised Capital Adequacy Framework is to disclose relevant information on capital adequacy in relation to
various risk of the bank so that stakeholders can assessthe position of a bank regarding holding of assets and to
identify the risks relating to the assets, riskexposures, risk assessment processes and capital adequacy to meet
probable loss of assets as well ascan make the economic decision. The disclosures under Pillar-III of the framework
of the bank ason 31 December 2013 are as under:
a. Scope of Application
b. Capital Structure
c. Capital Adequacy
d. Credit Risk
e. Equities: Disclosures for Banking Book Positions
f.
Interest Rate Risk in the Banking Book (IRRBB)
g. Market Risk
h. Operational risk
Scope of Application:
Qualitative Disclosures:
a) The name of the top corporate
entity in the group to which this
guideline applies.
Bangladesh Commerce Bank Limited.(BCBL)
b) An outline of differencesin the

basis of consolidation for
accounting and regulatory
purposes, with a brief description
of the entities within the group
BCBL has only one subsidiary as on the reporting date namely;

Bangladesh Commerce Bank Securities and Investment Limited. A brief
description of the Bank and its subsidiaries are givenbelow:
(a) that are fully consolidated;

(b) that are given a deduction
treatment; and
(c) that are neither consolidated
nor deducted
(e.g. where the investmentis
risk-weighted).
Bangladesh Commerce Bank Limited (BCBL) was incorporated as a public

limited company in Bangladesh under Companies Act, 1994. It commenced
its banking business onJune 01, 1998 under the license issued by
Bangladesh Bank. Presently the Bank has 42 (Forty Two) branches. The
Bank has only one subsidiary namely; Bangladesh Commerce Bank
Securities and Investment Limited.
Bangladesh Commerce Bank Limited.
Commerce Bank Securities and Investment Limited (CBSIL)

Commerce Bank Securities and Investment Limited (CBSIL) emerged as a
fully owned subsidiary of Bangladesh Commerce Bank Limited (BCB) after
it had obtained its certificate of incorporation on the 20th September, 2010.
On the 21st April, 2011, the Stock Broker and Stock Dealer license was
transferred in favour of CBSIL and after the completion of necessary
formalities; the company started its formal operation on the 1st June, 2011.
Commerce Bank Securities and Investment Limited having its legal status
as a Public Limited Company was registered with the Registrar of Joint Stock
61
Companies and Firms in Dhaka with an Authorized Capital and Paid up

Capital of Tk. 100.00 crore and Tk. 20.00 crore respectively. The company
is being operated in accordance with its Memorandum of Association (MA)
and Articles of Association (AA), rules and regulations of Bangladesh
Securities and Exchange Commission (BSEC) and Dhaka Stock Exchange
(DSE) and other applicable laws and guidelines of appropriate regulatory
bodies in Bangladesh.
Commerce Bank Securities and Investment Limited started its journey with
mission of "To provide world class investment services that adds value to
all out stakeholders".
CBSIL is running their operation to be one of the top performers in the
sector through achieving the following:
Sound and prudent portfolio management to earn maximum return on
investment
Transparency and accountability in service delivery
Establishing and maintaining effective customer relationship
Minimizing loan defaults within the customer portfolio through optimal
loan utilization
To earn high return on equity
To comply with international best practice in business dealings
c) Any restrictions or other major
impediments, funds regulatory
capital within the group.
Not applicable
Quantitative Disclosure :
d) The aggregate amount of capital
deficiencies in all subsidiaries
not included in the consolidation
that are deducted and the
name(s) of such subsidiaries.
There is Tk. 130.83 crore capital deficiency in the financial year 2013 in
Solo basis and Tk. 128.31crore in consolidated basis.
B) Capital Structure
a) Summary information on the
terms and conditions of the main
features
of
all
capital
instruments, especially in the
case of capital instruments
eligible for inclusion in Tier 1 or
in Tier 2.
Regulatory capital, as stipulated by the revised RBCA guidelines by

Bangladesh Bank, is categorized into three tiers according to the order of
quality of capital (Tier I, II & III).
a) Tier-I capital called 'Core Capital' comprises of highestquality of capital
elements and as per the guidelines ofBangladesh Bank, Tier I capital of
BCB bank consists ofi) Paid up capital ii) Statutory Reserveiii) RetainedEarnings iv) General
Reserve v) Share Capital BCI and vi) Right Share Application Money.
b) Tier-II capital called 'Supplementary Capital' representsother elements,
which fall short of some of the characteristics of the core capital but
contribute to theoverall strength of a bank and as per the guidelines
ofBangladesh Bank, Tier II capital of BCBL consistsof
i) General provision
ii) Revaluation reserve for HTM Securities
62
c) Tier-IIIcapital called 'Additional Supplementary Capital' consists of shortterm subordinated debt, whichwould be solely for the purpose of meeting a
proportion of the capital requirements for market risk and BCBL had no Tier
III element in its capital structure.
Bangladesh Commerce Bank Ltd's capital is segmented into Tier-I & Tier-II
capital. Tier-I capital is 95.54% of total capital and comprises of 89% paid
up capital & 6% statutory reserve. Tier-II capital is 5% of total capital and
comprises of general provision, revaluation reserve of Securities. Tier-II
capital is 5% of Tier-I capital.
Right Share Issuance of Bangladesh Commerce Bank Ltd. (BCBL)
BCBL was able to raise the paid up capital by TK 106.87 Crore through
issuance of 'Right Share' in 31st December, 2010 & 91.36 crore in the
name of right share application money at the end of 31st December, 2013.
Quantitative Disclosures: As on the reporting date, the Bank had a consolidated capital of BDT269.40 crore
comprising Tier-I capital of BDT 254.22 Crore (including 71.28 crore adjustment) and Tier-II capital of BDT 15.18
crore (BCBL had no Tier III elements in its capital structure). Following table presents component wise details of
capital as on reporting date i.e. 31 December 2013:
Solo
Tk. (in crore)
Consolidated
Tk. (in crore)
Fully Paid-up Capital
198.87
198.87
Statutory Reserve
19.48
19.48
Other Reserve
0.89
0.89
Retained Earnings
10.75
11.00
Share capital BCI
3.90
3.90
91.36
91.36
Total Tier-I capital
325.25
325.50
Less : Other deductions from capital
71.28
71.28
Provision Shortfall
71.28
71.28
Adjusted Tier-I capital (A)
253.97
254.22
General Provision
12.08
12.08
Provision for Off Balance Sheet Exposure
2.09
2.09
Revaluation Reserve for HTM & HFT Securities (50%)
1.03
1.03
Total Tier - II capital (B)
15.20
15.20
Total Eligible Capital (A+B)
269.17
269.40
Sl.
1.
2.
Particulars
Tier-I capital
Tier-II capital
Non-convertible Subordinated Bond

Exchange Equalization Account
63
C) Capital Adequacy
a) A Summary of discussion of the
bank's approach to assess the
adequacy its capital to support
current and future activities
In terms of RBCA guidelines on Basel-II framework issued by Bangladesh

Bank,the bank has adopted the standardized approach for credit risk,
standardized (rulebased) approach for market risk and basic indicator
approach for operational risk.
As per capital adequacy guidelines, the bank is required to maintain a
minimumCAR of 10.00% with regards to credit risk, market risk and
operational risk.
BCBL focuses on strengthening and enhancing its risk management
cultureand internal control processes rather than increasing capital to cover
up weak riskmanagement and control practices. TheBank's policy is to
manage and maintain strong Capital Adequacy Ratio throughinvesting on
those who are high grade rated investment customer and those whoare low
risk weight bearing customer. The bank is able to maintain capital
adequacy ratio (CAR) at 14.28% on consolidated basis against the
regulatory minimum level of 10.00%. The Bank's policy is to manage and
maintain its capital with theobjective of maintaining strong capital ratio and
high rating. The Bank also ensures that the capital levels comply with
regulatory requirements and satisfy the externalrating agencies and other
stakeholders including depositors. The whole objectiveof the capital
management process in the Bank is to ensure that the Bank
remainsadequately capitalized at all times.
C) Capital Adequacy
Sl.
1
Particulars
Solo
Tk. (in crore)
Consolidated
Tk. (in crore)
Capital requirement for Credit Risk:

On - Balance sheet
1488.51
1573.39
Off - Balance sheet
145.35
145.35
Capital requirement for Market Risk
129.07
129.07
Capital requirement for Operational Risk
121.45
121.45
Total RWA (Risk Weighted Asset)
1884.37
1969.26
Capital Adequacy Ratio (CAR) [Minimum 10% of RWA or

Tk. 400 crore whichever is higher]
14.28%
13.68%
Core Capital to RWA
13.48%
12.90%
D) Credit Risk
The general qualitative disclosures:
a) Definitions
impaired:
64
of past due
and
A loan repayment that has not been made as of its due date is called
pastdue/overdue. Failure o repay a loan on time could have negative
implications for the customer's credit worthiness or cause the loan terms
tobe permanently adjusted. In case of past due loan, the bank may charge
compensation which does not come under bank's income rather the
charges use forbenevolent purpose.
A loan is impaired when it is not likely the bank will collect the full value ofthe loan
because the creditworthiness of a customer has fallen. The bank willpursue either
restructuring or foreclosure as a result of the impaired status of theloan. Further, the
bank must report the loan as impaired on any of itsfinancial statements and CIB of
Bangladesh bank.
With a view to strengthening loan discipline and bring classification and provisioning
regulation in the line with international standard, a phase wise programfor classification
and provisioning was undertaken by the Bank as per BangladeshBank circulars issued
from time to time. In this regard, all the loans are grouped into four categories for the
purpose of classification, namely (i) ContinuousLoan, (ii) Demand Loan, (iii) Fixed Term
Loan and (iv) Short-term Agricultural and Micro Loan. The above loans are classified
asfollows:
Continuous & Demand Loan are classified as under:
Sub-standard- if it is past due/overdue for 3 months or beyond but lessthan 6

months;
Doubtful- if it is past due/overdue for 6 months or beyond but less Than 9 months;
Bad/Loss- if it is past due/overdue for 9 months or beyond.
Fixed Term Loan (More than Tk. 10.00 Lac) is classified as:
Sub-standard- if the defaulted installment is equal to or more than the amount of
installment(s) due within 3(three) months, the entire investments are classified as
"Sub-standard".
Doubtful- if the defaulted installment is equal to or more than the amount of

installment (s) due within 6 (six) months, the entire investments are classified as
"Doubtful.
Bad/Loss- if the defaulted installment is equal to or more than the amount

classified as"Bad/Loss".
** A Continuous, Demand or Term Investment which will remain over due for a period
of 60 days or more, are treated as "Special Mention Account (SMA)".
We follow the following approach for specific and general allowances and statistical
method:
**Description of
approaches
followed for
specific and
general
allowances and
statistical
methods:
Short Term Consumer Fianancing

Agriculture
credit and
Other than
HF
micro credit
HF & LP
Particulars
LP
Small
Enterprise
Financing
Investments
All
to
other
BHs/MBS/SDs credit
STD
5%
5%
2%
2%
0.25%
2%
1%
SMA
n/a
5%
2%
2%
0.25%
2%
1%
SS
5%
20%
20%
20%
20%
20%
20%
DF
5%
50%
0%
50%
50%
50%
50%
B/L
100%
100%
100% 100%
100%
100%
100%
Unclassified
Classified
Base for provision = Outstanding- (eligible security+ profit suspense) or 15% of outstanding whichever is higher.
**Discussion of
the bank's
investment (credit)
risk management
policy.
Risk is inherent in all aspects of a commercial operation; however for Banks and financial
institutions, investment (credit) risk is an essential factor that needs to be managed.
Investment (credit) risk is the possibility that a borrower or counter party will fail to meet
its obligations in accordance with agreed terms. Investment (Credit) risk, therefore,
arises from the bank's dealings with or lending to corporate, individuals, and other
banks or financial institutions. To manage investment (credit) risk BCBL bank follows
"Bangladesh bank's Circulated CREDIT RISK MANAGEMENT guidelines".
65
b) Total Gross credit risk exposures broken down by major types of credit exposures:
Figure in Crore
Solo
Exposure Type (Funded)
Consolidated
Exposure
RWA
Exposure
RWA
Claims on Banks and NBFIs
427.88
165.68
433.37
168.42
Claims on Corporate
603.23
648.05
603.23
648.05
Claims under Credit Risk Mitigation
117.17
117.17
Claims categorized as retail portfolio & SME

(excluding consumer loan)
363.38
272.54
363.38
272.54
4.05
4.05
4.05
4.05
Claims fully secured by commercial real estate
37.60
37.60
37.60
37.60
Past Due Claims (Net of Specific Provision, when applicable)
153.77
230.66
153.77
230.66
Capital Market Exposures
37.54
46.93
68.35
85.44
Unlisted Equity Investments
20.75
25.94
20.75
25.94
Investments in premises, plant and equipment and all other fixed assets
18.29
18.29
19.31
19.31
Claims on GoB& BB
50.10
50.10
Staff loan/Investment
27.17
5.43
27.17
5.43
Other assets
33.35
33.35
75.96
75.96
2452.42
1488.50
2538.50
1573.39
Consumer Finance
Claims fully secured by residential property
Total
Exposure Type (Non- Funded)
Solo
Consolidated
Exposure
RWA
Exposure
RWA
Claims on Public Sector Entities
Claims on Banks and other NBFIs:
116.28
145.35
116.28
145.35
116.28
145.35
116.28
145.35
Claims on Corporate
Claims against retail portfolio & SME (excluding consumer loan)
Total
Mode wise Loan
Sl.
Exposure
1.
Overdrafts
134.82
2.
General Loan
204.12
3.
Cash Credit
384.38
4.
Transport Loan
5.
Loan against Trust Receipts
202.76
6.
Payment Against documents
27.18
7.
Consumer Credit
8.
Staff Loan
27.17
4.40
.51
9.
Inland Bill Purchased
0.10
10.
Foreign Bill Purchased
0.39
11.
Other Loans
264.53
12.
Loan BCI
56.00
Total
66
1306.37
c) Geographical distribution of credit exposures

Figure in Crore
Sl.
Division wise Loan
Exposure
1.
Dhaka
769.04
2.
Chittagong
346.38
3.
Rajshahi
40.02
4.
Khulna
80.42
5.
Sylhet
14.50
Total
1306.37
d) Industry or counter party distribution of credit Exposures

Figure in Crore
Sl.
Industry wise Loan
Exposure
1.
Agriculture
10.55
2.
Manufacturing Industry
308.10
3.
Construction Company
37.60
4.
Transportation
4.40
5.
Commerce & Trade
587.13
6.
Others
358.57
Total
1306.37
e) Maturity grouping wise credit Exposures

Figure in Crore
Sl.
Item
Exposure
1.
Repayable on Demand
54.21
2.
Less than 03 months
229.94
3.
More than 03 months but less than 1 year
543.26
4.
More than 1 year but less than 5 years
165.16
5.
More than 5 years
313.80
Total
1306.37
67
f) General & Specific Provision

Required Provision Figure in Crore
Unclassified Loans
10.98
Special Mention Accounts (SMA)
0.22
a) Sub Total
11.20
Substandard
9.12
Doubtful
0.86
Bad/Loss
107.26
b) Sub Total
117.24
Total (a+b)
128.44
**Provision for Off-balance-sheet items-
2.08
g) NPAs
Figure in Crore
**Gross Non Performing Assets(NPAs)
191.83
% of Non Performing Assets (NPAs) to Outstanding Loans to Outstanding Loans & Advances
14.68%
h) Movement of Nonperforming Assets
Figure in Crore
Opening Balance
155.31
Addition during the year
180.17
Deduction during the year
143.64
Closing Balance 31.12.2013
191.83
Movement of Specific Provision of Nonperforming Assets
Figure in Crore
Opening Balance
43.82
Provisions made during the period
2.50
Write-Off
.38
Write-Back of excess provisions
0.00
Closing Balance 31.12.2013
45.95
68
E) Equities: Disclosures of Banking Book Positions:

The general qualitative disclosures requirement with respect to equity risk, including
a) Differentiation between Holdings
on which capital gains are
expected and those taken
under other objectives including
for relationship and strategic
reasons;
Investment of BCBL in equities is divided into twocategories: quoted

equities (which are traded in the secondary market) and unquoted equities
(which are nottraded in the secondary market). Since the intent of holding
unquoted equities is not trading, the same are considered as banking book
equity exposure.
b) Discussion of important policies

covering the valuation and
accounting of equity holdings in
the banking book. This includes
the accounting techniques and
valuation methodologies used,
including key assumptions and
practices affecting valuation as
well as significant changes in
these practices.
The baking book securities are shown at cost price andno revaluation
reserve has been created against these equities.
a) a) Value disclosed in the

balance sheet of investments,
as well as the fair value of those
investments;
for
quoted
securities,a comparison to
publiclyquotedshare
values
where
the share price is
materially different from fair
value.
Total Market value of BCBL portfolio share is Tk.20.32 crore whereas Cost
price is Tk. 37.55 crore
b) The cumulative realized gains

(losses) arising from sales and
liquidations in the reporting (31
December 2013) period.
Total cumulative realized gain is BDT 0.75 crore on trading book equities
c)
* Total unrealized gains (losses)
Unrealized loss on BCBL Portfolio Share as on 31st Decmber,2013 is BDT

17.21 crore on trading book equities
* Total latent revaluation gains

(losses)
* Any amounts of the above

included in Tier 2 capital.
Capital requirements broken
down by appropriate equity
groupings, consistent with the
bank's methodology as well as
the aggregate amounts
and
the type of equity investments
subject to any supervisory
provision regarding regulatory
capital requirements
Capital charge on banking book equities has been BDT 15.09 crore,
calculated by giving 125% risk weight
69
F) Interest Rate Risk in Banking Book (IRRBB)

general
qualitative
a) The
disclosure requirement including
the nature of IRRBB and key
assumptions,
including
assumptions regarding loan
prepayments and behavior of
non maturitydeposits, and
frequency
of
IRRBB
measurement.
Interest rate risk is the exposure of a bank's financial condition toadverse

movements in profit rates. The process of Interest rate risk management by the
bank involves determination of the business objectives, expectation about future
macrovariables and understanding the money markets and debt market in
whichit operates. Interest rate risk is the risk, which affects the Bank's financial
condition dueto changes in themarket Interest rates. Changes in interest rates
affect both the current earnings (earnings perspective, traditional approachto
interest rate risk assessment taken by many banks) as well as the net worth of
the Bank (economic value perspective). The risk from earnings perspective
measured as impact on the Net Interest Income (NII). Similarly, the risk from
economic value perspective can be measured asimpact on Economic Value of
Equity(EVE) sincethe underlying value of the bank's assets, liabilities, and offbalance-sheet (OBS)instruments changes because the present valueof future
cash flows (and in some cases, the cash flowsthemselves) change when
interest rates change. An effective riskmanagement processthat maintains
interest rate risk within prudent levels is essential to the safety and soundness
of banks.The Bank adopted traditional Gap analysis for assessing impacton
profit perspective (earnings perspective) and Duration Analysis for assessing
the impact on the Economic Value of Equity (Economic Value Perspective) by
applying a notional interest rate shock up from 100 bps to 300 bps under stress
testpractice at the bank.
The risk from earnings perspective can be measured as impact in the Net Interest Income (NII) due to changes in
Interest rate.CAR before-shock (%) 17.13
Figure in Crore
Interest Rate Stress
Minor
Moderate
Major
Assumed Change in Interest Rate
1%
2%
3%
<12 Months
2.95
5.91
8.86
Capital After Shock
319.84
316.88
313.93
CAR after-shock (%)
16.97
16.82
16.66
Change in CAR after- shock (%)
0.16
0.31
0.47
Impact of fluctuation in the interest rates on economic value of a financial institution is tested in the stress test.
Economic value is affected both by changes in future cash flows and discount rate used for determining present
value. To determine the impact of increase in interest rate risk 3 scenarios are tested, in minor level of shock of 1%
increase in interest rate cause CAR to 16.97% from 17.13% and 2% increase in interest rate cause CAR to 16.82%,
finally a major shock of 3% increase in interest rate cause CAR to 16.66%.
Figure in Crore
Interest Rate Risk- Increase in Interest Rate
Minor Level
of Shock
Moderate Level
of Shock
Major Level
of Shock
Magnitude of Shock
1%
2%
3%
Duration Gap (Year)
1.26
1.26
1.26
Fall in MVE (on balance sheet)
28.03
56.06
84.09
Revised Capital
294.76
266.73
238.69
Revised RWA
1884.40
1884.40
1884.40
Revised CAR (%)
15.64
14.15
12.67
Net Investment Income Impact (<12Month)
2.95
5.91
8.86
*Stress Testing was conducted considering CAR of 17.13%.

70
G) Market Risk :
Qualitative Disclosure:
Views of Board of
Directors on trading/
investment activities:
Market risk is defined as the possibility of losses in on and off-balancesheet positions arising
from movements in market prices. The exposure of the bank to market risk arises principally
from customer-driven transactions. The market risk positions subject to this requirement are:
i) The risks pertaining to profit rate related instruments and equities in the trading book.
ii) Foreign exchange risk and commodities risk throughout the bank (both in the banking
and in the trading book).
Trading book comprises position in financial instruments held trading intent or in order to
hedge other element of the trading book. The portfolio of investment of BCBL includes
Bangladesh Government with Bangladesh Government Treasury Bond (BGIIB), Share of
listed public limited companies etc. The bank has always put impetus on investment of
fundsin high yield areas and also has ensured maintenance of statutory liquidity requirement
as set by Bangladesh Bank. The Board of Director approves all necessary policies related to
market risk and review them on regular basis.
Method used to
Measure Market risk:
There are several methods use to measure market risk and the bank usesthose methods
which deem fit for a particular scenario. For measuringprofit risk from earnings perspective,
the bank uses maturity gap analysis,Duration Gap analysis, and mark to market method and
for measuringforeign exchange risk, the bank usesVaR analysis. The Bank uses
standardized method for calculating capital charge against market risks forminimum capital
requirement of the Bank under Basel-II.
Market risk
Management system:
The Treasury &Financial Administration Division manage market risk covering Liquidity,
profit rate and foreign exchange risk with oversightfrom Assets Liability Management
Committee (ALCO) comprising SeniorExecutives of the Bank. ALCO is chaired by the
Managing Director &CEO of the Bank. ALCO meets at least once in a month
Policies & processes

To mitigate Market
risk:
The bank has put its Asset Liability Management policy by setting variousrisk limits for
effective management of market risk and ensuring that theoperations are in line with bank's
expectation of return to market riskthrough proper Asset Liability Management. The policies
also deal withthe reporting framework for effective monitoring of market risk.
The ALM Policy specifically deals with liquidity risk managementand profit rate risk
management framework. Liquidity risk is managed throughGap & Duration analysis, based
on residual maturity/behavioral patternof assets and liabilities, as prescribed by the
Bangladesh Bank. The Bankhas put in place mechanism of Liquidity Contingency Plan.
Prudential (Tolerance) limits are prescribed for different residual maturitytime buckets for
efficient Asset Liability Management. Liquidity profile of theBank is evaluated through various
liquidity ratios/indicators.
Foreign Exchange risk is the risk or chance of loss due to unexpectedmovement of market
price of the currencies of different countries or theprice of the assets denominated by foreign
currencies. For effective andefficient management of Foreign Exchange Risk, theBank has a
well- developed and well-structured Foreign Exchange Risk Manual and an international
standard Dealing Room Manual. Various limits are set tomonitor and mitigate the Foreign
Exchange risk such as, Net Open Position (NOP) limits (Day limit / Overnight limit), dealwise cut-losslimits, Stop-loss limit, Profit / Loss in respect of cross currency tradingetc. and
exception reporting is regularly carried out.
The Treasury of the Bank is mainly divided into three departments namely Front Office, Mid
Office and Back Office. The Front Office independently conducts the transactions and the
Back Office is responsible for settlement of those transactions after verifying of the dealsand
passing for those entries in the books of account. The Mid Officeplays a vital role in the
process by checking the Foreign Exchange procedure perform by Front and Back Office and
by reporting it directlyto the Managing Director & CEO of the Bank.
All foreign exchange transactions are revaluated at Mark to Market rate as determined by
inter-bank. All nostro accounts are reconciled on monthly basis and outstanding entries are
reviewed by the management for their settlement.
71
Figure in Crore
Total Capital Charge
Interest Rate Related Instruments

Equities
a) Specific Risk - Market value of investment in equities BDT 37.55
Charge at 10% of market value amounting BDT 3.76 Crore .
Crore. Capital
7.51
b) General MarketRisk-Market value of investment in equities BDT 37.55 Crore.Capital

Charge at 10% of market value amounting BDT 3.76 Crore
Foreign Exchange Position (Sum of Net Long Position BDT 7.06 Crore. Capital Charge at
10% on Sum of Net Long Position amounting BDT .76 Crore) 0.76
0.76
Total:
8.27
H) Operational Risk
a) Qualitative Disclosures:
Views of Board of
Directors on system to
reduce Operational
Risk:
Operational Risk is defined as the risk of loss resulting from in adequate or failed internal
processes, people and systems or from external events. It is inherent in all of the Bank's
activities. Operational risks are monitored and, tothe extent possible, controlled and
mitigated. The Bank's approach to operational risk is not designed to eliminate risk
altogether but rather, to contain risks within levels deemed acceptable by senior
management. All functions, whether business, control or logistics functions, must manage
theoperational risks that arise from their activities. This is supported by an independent
program of periodic reviews undertaken by internal audit, and by monitoring external
operational risks events, which ensure that the group stays in linewhich industry best
practice and takes account or lessons from publicized operational failures within the
financial services industry.
Performance gap of
executives and staffs:
The difference between standard/intended and the actual/current performance is known

as the performance gap. BCBL Bank always tries tominimize the performance gap of its
employees through need based training by assessing the various needs of the
employees. Bank maintains a decent work environment where employees can work with
dignity, can participate in thedecision making process, and receive equal treatment and
opportunity that affect their performance. The bank is relentlessly pursuing its visionto
transformthe human resources into human capital. The bank also encourages practicing
ethical behavior by following standard code of conduct. To reduce knowledge gap and
assist in the development of our personnel, user friendly Operations Manual have been
developed and enclosed with functional processes for all employees who are the end
users of these processes. The bank ensures timely compensation claims of the employee;
preserve the employeehealth and safety rules and avoid the discriminatory activities.
Strong brandimage of the bank plays an important role in employees' motivation.
Duringthe year 2013, the bank significantly reviewed few existing policies for providing
more benefit to employees with a view to introducing superior levelof job satisfaction.
Earlier the bank formed "Female Employees' Interest Protection Cell" to ensure Equal
Employment Opportunity. Competitive compensation also ensures best workplace safety
for the banks' employees tokeep away from incompatible employment practices and
unhealthy employee turnover. In 2013, the bank increases the overall remuneration
packages tomake it very attractive to motivate and retain performers. It is the policy of
thebank that various cash and non-cash benefits for the employees are reviewedtime to
time based on bank's performance and rationality. Bank introduces 'Employee Turnover
Risk' as a requirement of the Supervisory Review Process(SRP) under Pillar II of Basel II
which becomes a constant monitoring tool tomeasure the employee turnover of the bank.
72
Potential external
events
The potential external events that may pose the bank into operational risks areas follows.
1.
External Fraud: Acts by a third party, of a type intended to defraud, misappropriate

property or circumvent the law. Examples include robbery, forgery, and damage from
computer hacking.
2.
Taxation Risk: Sudden changes in tax laws and regulation that hamper the
profitability of a bank.
3.
Legal Risk: Legal risk is the risk of the Bank's losses in cases of i) incompliance of
the Bank with the requirement of the legal regulations ii) making legal mistakes in
carryingout activitiesiii) Imperfection of the legal system iv) Violation of legal
regulations, terms and conditions of concluded agreements by the counterparties.
4.
Damage of physical asset: Loss or damage to physical assets fromnatural disaster

or other events. Example includes terrorism vandalism, earthquakes, fires, floods etc.
5.
Business disruption and system failures: Disruption of business orsystem

failures. Examples include telecommunication problems, utilityoutages etc.
6.
Execution, delivery and process management: Failed transaction processing or

process management and relation with trade counterparties and vendors. Examples
include, non-client counterpartymis-performance, vendor disputes etc.
The Bank has taken the following policies and processes for mitigating operational risk
1.
Loss prevention: We focus on employee development through training and

development programs and review the performance of employees to prevent loss.
2.
Loss control: We have in detail planning and defined process in place like back up
of computer system controlling the loss.
The Bank has formed 'Risk Management Division' under 'Chief Risk Officer' to review
and update operational risksalong with allothercore risks on systematic basis as
essential ensuring that adequate controls exist and that therelated returns reflect
these risks and the capital allocated to support them. The bank already developed
the information systems/MIS inflow and data management capabilities to support the
risk management functions of the bank.The Bank as taken initiatives for protecting
the information from unauthorized access, modification, disclosure and destruction to
protect its 'customers' interest. The Bank has already developed its own ICT policies
for various operation and services, which are closely in line with the ICT Guidelines
of Bangladesh Bank. Training is a key component of operational risk management.
The Bank has been continuously conducting training sessions (i.e. Operational
Procedure, Business Continuity Planning, Disaster Recovery Planning etc.) for
relevant employees. The bank has been maintaining separate insurance coverage
for its critical assets.The bank conducts routine audit (both internal and external) and
internal ICT audit to allit's branches and Head Office divisions.
The Banks operating in Bangladesh have been computingthe capital requirements
for operational risk under the Basic Indicator Approach (BIA).
Under BIA, the capital charge for operational risk is a fixed percentage, denoted by
? (alpha) of average positive annual gross income of the bank over the past
threeyears. Figures forany year in which annualgross income is negative or zero,
should be excluded from both the numerator and denominator when calculating the
average.
73
The capital charge may be expressed as follows:

K = [(GI 1 + GI 2 + GI 3) ?]/n
WhereK = the capital charge under the Basic Indicator Approach
GI = only positive annual gross income over the previous three years (i.e., negative or
zero gross income if any shall be excluded)
? = 15 percent
n = number of the previous three years for which gross income is positive.
Gross Income (GI) is defined as "Net Investment Income" plus "Net non- Investment
Income". It is intended that this measure should:
1. be gross of any provisions;
2. be gross of operating expenses, including fees paid to outsourcing service providers
3. exclude realized profits/losses from the sale of securities held to maturity in the
banking book;
4. exclude extraordinary or irregular items;
5. Exclude income derived from insurance.
Quantitative Disclosures:
Figure in Crore
12.15
The capital requirements for operational risk
Capital Charge for Operational Risk-Basic Indicator Approach:

Year
74
Gross Income (GI)
2011
99.89
2012
71.28
2013
71.73
Average Gross Income (AGI)
80.97
Capital Charge = 15% of AGI
12.15
Product & Services Review

The principal activities of the Bank is to provide all kinds of commercial banking products and services to the
customers including deposits taking, cash withdrawal, extending investments to corporate organization, retail and
small & medium enterprises, trade financing, project finance, working capital finance, lease and hire purchase
financing, issuance of Debit Card. Its vision is to be the best private commercial bank in Bangladesh in terms of
efficiency, capital adequacy, asset quality, sound management and profitability.
Keeping in mind, we invested in innovative products and programs to help our customers meet their goals and to truly
deliver on the following manner:
Agriculture
Construction
Others
Manufacturing
Commerce & Trade
1%
Dhaka Division
Rajshahi Division
Sylhet Division
3.20%
25%
Chittagong Division
Khulna Division
1.16%
6.43%
25%
27.70%
3%
61.50%
47%
In recent years BCB diversified its business into different parts of the country. A division wise loans & advances
concentration shown above.
Industrial Lease Finance

We intend to offer "Industrial Lease Finance", a business loan to relatively small, medium and large size enterprise.
The products main objective is to assist the genuine and capable entrepreneur for acquiring Capital Machinery and
Equipment to undertake enterprise without equity, to encourage the new and educated young entrepreneurs to
undertake productive venture and demonstrate their creativity and thereby participate in the national development, to
participate in the industrial development of the country. The product caters only to the small, medium and large size
industrialist to meet fixed assets (i.e. - Capital Machinery / Equipments / Vehicles / CG Conversions / Auto Mobiles /
Refueling Plant / Lift / Generator / Boiler / Construction Equipment / Medical Equipments / Computer of IT Education
center etc.) purchased for expansion of business under equated monthly rental based repayment plan.
BCB Krishi & Palli Loan

Keeping the view of the people-orientation and welfare objectives of the Bank, this scheme has been introduced to
provide Crop loan and poverty alleviation in rural and sub-urban area. Loan is given for growing crop, fishery, poultry,
purchase agricultural equipment, cottage industries, food processing, production of jute processed goods, production
spices etc.
Crop loan facility up to Tk. 50000.00 without collateral security.
Loan demand, repayment time & tenor determined based on agricultural sub-sector.
Annual interest rate is only 13%.
Skilled applicant will get preference.
75
SME Banking
The role of Small and Medium Enterprises (SMEs) is indispensable for overall economic development of a country
particularly for a developing country like Bangladesh. Bangladesh Bank has given emphasis to the development of
the SME sector of the country financing through the commercial banks. BCB, since its inception, has been continuing
SME financing for its development.
To provide credit facilities to the Small and Medium size Entrepreneurs (SME) located in Urban & Sub-urban areas of
our country. BCBL has started SME loan. It will encourage the new and educated young entrepreneurs to undertake
productive venture with creativity.
The feature of the credit contained the follows:
Loan limit is Tk. 50.00 thousand to Tk. 50.00 lac.
No collateral security is required for loan up to Tk. 5.00 lac.
Tenor is 1 year to 2years.
Annual Interest rate 17.50%.
Loan processing fee 0.50% or maximum 5.00 lac.
Loan is renewable and can be adjusted at once.
Age limit of the client is 20 to 55 years.
Must have a link account like Savings / Current account.
The products of the SME credit contain:
Small Business Loan
Seasonal Credit Facility
Cash Credit for Small Enterprise
Industrial Loan
BCBL is also providing loans for medium, small or large industries. We are working hard for the development of
Industrial, Commercial, Economic, Cultural and Social sectors and thereby participate in the national development.
The Bank invested around 23% of its investment portfolio in industrial sector considering Small and large size.
Consumer Credit Scheme

We consolidated Consumer and Business Banking and Consumer Finance into one Consumer Banking business.
Considering Small and Medium Income group, BCB has introduce the credit scheme in order to purchase noninvestment goods or services that are consumed and whose value depreciates quickly. This includes Automobiles,
TV, Furniture, Refrigerator etc.
76
DEPOSIT PRODUCTS
1)
Savings Bank Account:

Any matured citizen of Bangladesh can open the account at any branch of BCBL with a minimum deposit of Tk.
500.00. Savings account can be opened in favor of any Individual, Joint holder or legal entity (Institutional).
2)
Current Deposit Account:

1000.00.Current account can be opened in favor of any Individual, Joint holder or legal entity (Institutional)
3)
Special Notice Deposit (SND) :

1000.00 Special Notice Deposit account can be opened in favor of any Individual, Joint holder or legal entity
(Institutional)
4)
BCB Srijoni (A Savings account for Working Women)

Any working woman of Bangladesh can open the account at any branch of BCBL with a minimum deposit of Tk
100.00. This is interest bearing account and will be paid on half yearly basis on the daily balances without any
obligation of minimum balance.
5)
BCB Nondita (A Savings Account only for Housewives)

This is for the purpose of savings by housewives only. Any housewife of Bangladesh can open the account at
any branch of BCB with a minimum deposit of Tk. 500.00. Interest will be paid half yearly on daily balances but
no interest will be paid should more than two withdrawal is made in a week or the minimum balance of any
particular month reaches less than Tk. 5000.00/-
6)
BCB Students' Savings Account:

This is a savings account for the students from 11 to 17 years old which can be opened jointly with the parents
only. Interest will be paid half yearly basis on daily balance.
7)
BCB Double & Triple Deposit Scheme:

This scheme can be availed by any matured citizen of Bangladesh at any branch of BCB with minimum deposit
of Tk. 10,000.00 or multiple. Deposited amount would be doubled or tripled in 07 (seven) years &12 (twelve)
years respectively (or as per the timeline fixed by the bank time to time). Loan privilege can be availed to
certain extent of the deposit.
8)
BCB Monthly Profit Scheme:

Any matured citizen of Bangladesh can open the account at any branch of BCB with a minimum deposit of Tk.
1, 00,000.00 or multiple for a period of 03 (three) years or 05 (five) years and avail fixed amount of monthly
profit.Loan privilege can be availed to certain extent of the deposit.
9)
BCB Monthly Savings Scheme:

Any matured citizen of Bangladesh can open the account at any branch of BCB and can avail the scheme with
minimum monthly installment Tk. 500.00 or multiple up to Tk. 50,000.00.Duration of the Scheme is 03, 05, 07 &
10 years and there is loan privilege up to certain limit of the deposited amount.
10) BCB Lakhpoti Scheme:

Any matured citizen of Bangladesh can open the account at any branch of BCB.Duration of the Scheme is 05
years & 10 years.Tk. 1,00,000.00 is paid on maturity against monthly Installment of certain amount.
77
11) BCB Millionaire Scheme:

Any matured citizen of Bangladesh can open the account at any branch of BCB. Duration of the Scheme is 10
(ten) years.Tk. 1,000,000.00 is paid on maturity against monthly Installment of certain amount.
12) BCB Marriage Savings Scheme:

(twelve) years and 18 (eighteen) years.Tk. 2,60,410.00and Tk. 5,57,860.00 is paid on after 12 & 18 years
respectively maturity against monthly Installment of Tk. 1000.00.
13) BCB Education Savings Scheme:

(eight) years.Tk. 69,620.00 is paid on maturity against monthly Installment of certain Tk. 500.00.
LOANS & ADVANCES PRODUCTS

1)
BCB Agriculture & Rural Loan:

Loan facility is allowed up to Tk. 50,000.00without any security. Sectors surrounded by BCB Agriculture & Rural
Loan includes Production of crops, Fisheries, Livestock & Poultry Farming, Purchase of Agricultural
equipments/ machineries, Cottage Industry, Food Processing, Productions from Jute, Production of Spices est.
2)
BCB Apiculture:
The Loan is allowed to maximum 60,000.00 for every 10 Bee Boxes with duration of maximum 12
months.Client's minimum investment will have to be 25% of the total loan amount and at least 05 Bee boxes
will have to be on possession for getting the loan.
BCB Kollani (A Micro Credit Program for self-employment of Women)
3)
This is a micro credit program for self employed women. The Loan is allowed to ranges from 100,000.00 to
5,00,000.00 where up to Tk. 1,00,000.00 is security free. The loan duration is 12 to 36 months and the
customer is required to have an associated Savings / Current Account with the concerned branch.
4)
BCB Seasonal Loan (SME):

Personal Loan is allowed to ranges from 50,000.00 to 300,000.00 where up to Tk. 3,00,000.00 is security free.
The loan duration is 01 to 06 months and the customer is required to have an associated Savings / Current
Account with the concerned branch.
BCB Term Loan (SME):
5)
Term Loan is allowed to ranges from 50,000.00 to 50,00,000.00 where up to Tk. 3,00,000.00 is security free.
The loan duration is 12 to 36 months and the customer is required to have an associated Savings / Current
Account with the concerned branch.
6)
BCB Cash Credit (SME):

Cash Credit is allowed to ranges from 50,000.00 to 50,00,000.00 where up to Tk. 5,00,000.00 is security free.
The loan duration is maximum 12 months and the customer is required to have an associated Savings / Current
Account withthe concerned branch.
BCB Teachers' Loan:
7)
This is security free loan for teachers &allowed to maximum 10 (ten) times of the basic salary with a duration of
12 to 48 months. The teacher is required to have service history for at least 03 years and an associated
Savings/ Current Account with BCB.
BCB Special Loan (For Service Holders):
8)
This is security free loan for the service holders only and the beneficiary is allowed to get upto 12 times of the
basic salary or Tk. 10,00,000.00 whichever is lower with a duration of 12 to 36 months. The service holder is
required to have service history for at least 03 years and an associated Savings / Current Account with BCB.
78
Business Outlook 2014

The best thing we can do in this or any environment is to focus on what we can control. Our efforts are centered on
our strategic priorities that shape our back-to-basics strategy.
In 2014, bank put his special drive in all aspect to reach to a certain level where it can be a reliable bank in
Bangladesh.
In Bangladesh, 2014 is the year of national election and so some political unrest is not unlikely which might hamper
the normal economic activities of the country. Despite of this limitation, the bank has taken short-term and mid-term
strategies to achieve the desired success are as follows:
Raise Paid up Capital BDT 400 crore
New and innovative products on deposit and loans & investment to increase BDT 3500 crore and 2500 crore only respectively.
Opening of more branches at upazilas and commercially important places.
We are entering the year 2014, focusing on improving profitability by growing core customer relationships, enhancing
credit quality, strengthening our balance sheet and managing expenses. We will achieve all of those goals by the plan.
Sl.
No.
Plans
Projected Target
2014
Growth (%)
01.
Paid up Capital
400.00
101.14
02.
MDR (Minimum Capital Requirement) [as per Basel- II]
400.00
03.
Total Eligible Capital [as per Basel- II]
400.00
48.60
04.
Total Deposit
3,000.00
52.01
05.
Total Loans
2,500.00
91.37
06.
Advance deposit ratio %
70.00
5.75
07.
Classified Loans
100.00
(47.87)
08.
Classified Loan Ratio %
5.00
(65.94)
09.
Recovery of Classified Loans
98.00
364.68
10.
Income from Non Funded Business
30.00
65.75
11.
Interest Income
225.00
8.33
12.
Interest Expense
184.00
5.52
13.
Operating Expenses
93.00
40.65
14.
Capital Expenditure (Year-wise Cumulative)
4.75
(34.30)
15.
Profit before tax & provision
50.00
289.11
16.
Retained Earnings
4.75
(55.81)
17.
Import
2,000.00
520.08
18.
Export
1,000.00
96.26
19.
Remittance
60.00
14.96
20.
Cost of deposit (decrease in %)
6.13
(37.13)
21.
Cost of Fund (decrease in %)
6.21
(49.06)
22.
Yield on Advance in %
11.25
(22.25)
23.
Spread in %
5.12
8.47
24.
No. of employees
25.
No. of Branches
26.
No. of Loss Incurring Branches
27.
Total Assets
1,045
44.94
50
19.05
(84.62)
3,645.00
48.63
79
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80
Auditor's Report
&
Audited Financial Statements of
Bangladesh Commerce Bank Ltd.
INDEPENDENT AUDITOR'S REPORT

TO THE SHAREHOLDRS OF
BANGLADESH COMMERCE BANK LIMITED
Report on the Financial Statements
We have audited the accompanying consolidated financial statements of Bangladesh Commerce Bank Limited and
its subsidiary ("the Group") namely Commerce Bank Securities and Investment Limited as well as the separate
financial statements of Bangladesh Commerce Bank Limited ("the Bank") which comprise the consolidated balance
sheet and the separate balance sheet as at 31 December 2013 and the consolidated and separate profit and loss
accounts, consolidated and separate statements of changes in equity and consolidated and separate cash flow
statements for the year then ended and a summary of significant accounting policies and other explanatory
information.
Management's Responsibility for the Financial Statements and Internal Controls
Management is responsible for the preparation of consolidated financial statements of the Group and also separate
financial statements of the Bank that give a true and fair view in accordance with Bangladesh Financial Reporting
Standards as explained in note # 2.1 and for such internal control as management determines is necessary to enable
the preparation of consolidated financial statements of the Group and also separate financial statements of the Bank
that are free from material misstatement whether due to fraud or error. The Bank Company Act, 1991 and the
Bangladesh Bank Regulations require the Management to ensure effective internal audit, internal control and risk
management functions of the Bank. The Management is also required to make a self-assessment on the
effectiveness of anti-fraud internal controls and report to Bangladesh Bank on instances of fraud and forgeries.
Auditor's Responsibility
Our responsibility is to express an opinion on these consolidated financial statements of the Group and the separate
financial statements of the Bank based on our audit. We conducted our audit in accordance with Bangladesh
Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the consolidated financial statements of the Group and separate
financial statements of the Bank are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated financial statements of the Group and separate financial statements of the Bank. The procedures
selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the
consolidated financial statements of the Group and separate financial statements of the Bank, whether due to fraud
or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of
consolidated financial statements of the Group and separate financial statements of the Bank that give a true and fair
view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements of the Group and
also separate financial statements of the Bank.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
Basis for Qualified Opinion
a. (i) Provision for loans and advances for Tk.713,376,999 remained short in the financial statements for the year
ended 31 December 2013; and
(ii) No provision was made against other assets for Tk.8,638,707 for the year ended 31 December 2013.
b. As disclosed in Note # 13.3.1 to the financial statements, Income Tax Assessment for the year 2005-2006, 20062007, 2007-2008, 2009-2010 & 2011-2012 are pending before appeal. Income tax return has been filed under
section 82BB(3)/83(2) for the year 2012-2013. Income tax has been provided @ 42.5% on the net profit earned
by the Bank for the year 2013. As per assessment at Deputy Commissioner of Taxes (DCT) level there exists
shortfall in the provision for income tax aggregating Tk.63,896,780 against which Appeals are pending at
different levels of income tax authorities.
c.
As per section 13 (2) of Bank Company Act 1991 and BRPD Circular No. 35 dated 29 December 2010 to fulfil
the Basel-II requirement, the required capital of the Bank was Tk.4,000 million against which the bank has
maintained capital of Tk.2,691.69 million on 31 December 2013. Thus there remained a book shortfall of capital
amounting to Tk.1,308.31 million as on the balance sheet date.
82
Auditor's Report
If the matters discussed in paragraph (a) above have been considered in the financial statements, the net profit
after tax for the year ended 31 December 2013 would have been negative i.e; net loss to the tune of
Tk.704,518,778 instead the net profit of Tk.17,496,928 and the actual capital shortfall would have been
Tk.1,317.43 million instead of Tk.1,308.31 million as reported by the bank.
Qualified Opinion
In our opinion, except for the possible effects of the matters described in the Basis for Qualified Opinion paragraph,
the consolidated financial statements of the Group and also the separate financial statements of the Bank give a true
and fair view of the financial position of the Group and the Bank as at 31 December 2013, and of their financial
performance and their cash flows for the year then ended in accordance with Bangladesh Financial Reporting
Standards as explained in note # 2.1.
Except for as mentioned above, we also report on Other Legal and Regulatory Requirements
In accordance with the Companies Act 1994, the Bank Company Act, 1991 and the rules and regulations issued by
Bangladesh Bank, we also report the following:
(a) we have obtained all the information and explanation which to the best of our knowledge and belief were
necessary for the purpose of our audit and made due verification thereof;
(b) to the extent noted during the course of our audit work performed on the basis stated under the Auditor's
Responsibility section in forming the above opinion on the consolidated financial statements of the Group and the
financial statements of the Bank and considering the reports of the Management to Bangladesh Bank on antifraud internal controls and instances of fraud and forgeries as stated under the Management's Responsibility for
the Financial Statements and Internal Control:
(i) internal audit, internal control and risk management arrangements of the Group and the Bank as disclosed in
note # 2.19 to the financial statements appeared to be materially adequate;
(ii) nothing has come to our attention regarding material instances of forgery or irregularity or administrative
error and exception or anything detrimental committed by employees of the Bank and its related entities;
(c) financial statements of the subsidiary, namely, Commerce Bank Securities and Investment Limited of the Bank
has been audited by other auditor and has been properly reflected in the consolidated financial statements;
(d) in our opinion, proper books of account as required by law have been kept by the Group and the Bank so far as it
appeared from our examination of those books;
(e) the consolidated balance sheet and consolidated profit and loss account of the Group and the separate balance
sheet and separate profit and loss account of the Bank dealt with by the report are in agreement with the books
of account;
(f) the expenditure incurred was for the purposes of the Bank's business;
(g) the consolidated financial statements of the Group and the separate financial statements of the Bank have been
drawn up in conformity with prevailing rules, regulations and accounting standards as well as with related
guidance issued by Bangladesh Bank;
(h) except for the facts as stated in Basis for Qualified Opinion paragraph (a)(i), adequate provisions have been
made for advances which are, in our opinion, doubtful of recovery;
(i) the records and statements submitted by the branches have been properly maintained and consolidated in the
financial statements;
(j) the information and explanation required by us have been received and found satisfactory; and
(k) we have reviewed over 80% of the risk weighted assets and we have spent around 2,950 person hours for the
audit of the books and accounts of the Bank.
Dhaka,
30 March 2014
ACNABIN
Chartered Accountants
83
Bangladesh Commerce Bank Limited & its Subsidiary

Consolidated Balance Sheet
As at 31 December 2013
31.12.2013
Taka
31.12.2012
Taka
3(a)
3.1(a)
1,724,870,558
458,057,362
1,756,588,118
400,437,055
3.2(a)
1,266,813,196
1,356,151,063
Balance with other banks and financial institutions

In Bangladesh
Outside Bangladesh
4(a)
3,706,340,628
3,699,951,504
6,389,124
1,816,942,940
1,793,338,483
23,604,457
Money at call and short notice
5(a)
388,900,000
239,100,000
Investments
Government
Others
6(a)
4,545,478,974
3,962,676,946
582,802,028
2,603,387,934
1,713,129,860
890,258,074
Loans and Advances

Loans, Cash Credit, Overdrafts etc.
Bills purchased and discounted
Loans & Advances of BCI
Total Loans and Advances
Fixed assets including premises, furniture and fixtures
7(a)
8(a)
12,063,679,147
12,058,829,147
4,850,000
560,031,693
12,623,710,840
192,396,337
11,676,531,295
11,671,227,073
5,304,222
573,724,347
12,250,255,642
175,398,835
9(a)
1,495,739,735
1,239,195,758
Notes
PROPERTY AND ASSETS
Cash
Cash in hand (including foreign currencies)
Balance with Bangladesh Bank and its agent bank(s)
(including foreign currencies)
Other assets
Non-banking assets
7.14
10
TOTAL ASSETS
24,677,437,073
20,080,869,228
11(a)
50,805,000
155,460,000
12(a)
19,736,163,381
853,315,278
1,396,691,167
1,517,226,728
12,659,431,640
1,917,935,552
214,564,919
550,000,000
626,998,097
55,080,685
15,610,992,918
761,974,778
1,242,980,289
935,589,244
9,877,954,807
1,518,369,188
285,622,271
310,000,000
678,502,341
55,905,122
1,556,259,980
1,926,704,795
21,398,309,046
17,749,062,834
1,988,742,800
39,000,000
90
913,578,800
194,845,145
8,920,366
20,568,499
113,472,327
3,279,128,026
24,677,437,073
1,988,742,800
39,000,000
90
178,609,568
8,920,366
17,593,459
98,940,110
2,331,806,393
20,080,869,228
LIABILITIES AND CAPITAL

Liabilities
Borrowings from other banks, financial institutions and agents
Deposits and other accounts
Current Account and Other Accounts etc.
Savings Bank Deposits
Short Term Deposits
Fixed Deposits
Deposit under Different Schemes
Bills Payable
Bank Deposit
Other Deposits
Deposits (BCI)
Other liabilities
12.1
12.3
12.4(a)
13(a)
Total Liabilities
Capital/Shareholders' Equity
Paid-up-Capital
Share Capital BCI Ltd.
Minority Interest
Statutory Reserve
Other Reserve
Surplus/Deficit in Profit and Loss Account
Total Shareholders' Equity
Total Liabilities and Shareholders' Equity
84
14.2
15(a)
16(a)
17(a)
18(a)
Notes
31.12.2013
Taka
31.12.2012
Taka
OFF-BALANCE SHEET ITEMS
Contingent Liabilities
Acceptances and Endorsements
Letter of Guarantees
Irrevocable Letter of Credit
Bills for Collection
Other contingent liability
19.1
19.2
TOTAL CONTINGENT LIABILITIES
792,496,105
357,479,616
691,220,053
159,635,288
84,373,621
802,196,848
387,162,419
714,819,019
110,832,029
84,373,621
2,085,204,684
2,099,383,936
2,085,204,684
2,099,383,936
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
Total Off-Balance Sheet items including contingent liabilities
The annexed notes form an integral part of these financial statements.
Managing Director
Director
Director
Chairman
This is the Consolidated Balance Sheet referred to in our separate report of even date.
Dhaka,
30 March 2014
ACNABIN
85

Consolidated Profit and Loss Account
Notes
Interest Income
Interest Paid on Deposits and Borrowings etc
Net Interest Income
Income from Investments
Commission, Exchange Earnings & Brokerage
Other Operating Income
20 (a)
21(a)
22(a)
23(a)
24(a)
Total operating income (A)

Salary and Allowances
Rent, Taxes, Insurance, Electricity, etc.
Legal Expenses
Postage, Stamp, Telecommunication etc.
Stationery, Printing, Advertisement etc.
Managing Director's salary and allowances
Directors' Fee
Audit & Evaluation Fee
Depreciation & Repair of Fixed Assets
Other Expenses
Total operating expenses (B)
Profit before Provision (C)=A-B
Provision for classified loans
Provision for unclassified loans
Other provisions
Total provision (D)
Total profit/(loss) before taxes (C-D)
Provision for Taxation
Current tax
Deferred tax
Net profit/ (loss) after Taxation
Appropriations
Statutory Reserve
General Reserve
Dividends etc.
Retained surplus
Earning Per Share (EPS)
25(a)
26(a)
27(a)
28(a)
29
30(a)
31(a)
13.1.1(a)
13.1.2
15
33(a)
31.12.2013
Taka
31.12.2012
Taka
2,091,594,245
1,743,832,265
347,761,980
274,816,318
131,773,019
106,510,070
513,099,406
860,861,386
1,760,901,743
1,346,271,371
414,630,371
327,833,951
136,375,987
76,163,694
540,373,632
955,004,003
389,929,223
102,558,053
1,058,699
13,964,901
15,370,438
1,663,870
1,114,500
776,250
62,948,852
114,966,908
704,351,694
156,509,693
40,191,934
13,946,236
8,378,260
62,516,430
93,993,262
73,992,816
78,407,134
(4,414,318)
20,000,446
330,314,390
84,100,248
1,620,375
5,973,870
10,996,183
8,653,290
1,224,836
152,875
46,940,004
140,366,040
630,342,111
324,661,892
57,893,130
3,525,427
65,957,637
127,376,194
197,285,697
84,687,139
73,868,269
10,818,870
112,598,558
16,235,577
16,235,577
3,764,870
1.01
35,395,875
35,395,875
77,202,683
5.66
Managing Director
Director
Director
Chairman
This is the Consolidated Profit and Loss Account referred to in our separate report of even date.
Dhaka,
30 March 2014
86
ACNABIN

Consolidated Cash Flow Statement
31.12.2013
Taka
A. Cash flow from operating activities

Interest receipts
Interest payments
Dividend receipts
Fees and commission receipts in cash
Recoveries of loans previously written off
Cash paid to employees
Cash paid to suppliers
Income Taxes paid
Receipts from other operating activities (item-wise)
Payments for other operating activities (item-wise)
Operating profit before changes in operating
Assets and Liabilities
31.12.2012
Taka
2,142,076,052
(1,400,848,186)
1,672,633
131,773,019
(388,265,353)
(14,664,947)
(140,346,567)
106,510,070
(114,966,908)
1,525,340,484
(1,197,638,753)
3,327,843
140,056,213
(338,019,898)
(10,170,152)
(185,062,954)
80,874,908
(148,249,725)
322,939,813
(129,542,034)
Increase/(Decrease) in operating assets & liabilities

Statutory Deposits
Net Investment in trading securities
Loan & advance to other banks
Loan & advance to customers
Other assets (item-wise)
Deposits from other banks
Deposits from customers
Other liabilities account of customers
Trading liabilities
Other liabilities (item-wise)
Net cash flow from operating activities (A)
B. Cash flow from investing activities
Proceeds from sale of securities
Payments for purchase of government securities
Purchase of property, plant & equipment
Purchase/sale of subsidiary
Investment in Margin Loan (CBSIL)
Investment in Shares (CBSIL)
Net cash used in investing activities (B)
C. Cash flow from financing activities
Receipts from issue of debt instruments
Payment for redemption of debt instruments
Receipts from issuing ordinary share/ rights share
Dividend paid
Net cash flow from/(used in) operating activities (C)
D. Net increase/(decrease) in Cash and Cash Equivalent (A+B+C)
3,108,889,298
(16,235,577)
(373,455,199)
(256,543,977)
240,000,000
3,885,568,865
(370,444,815)
3,431,829,111
660,596,511
(35,395,875)
(915,814,198)
(277,480,240)
(492,890,000)
2,226,530,062
155,646,762
531,054,477
(16,997,502)
(68,458,268)
(2,924,926)
(88,380,696)
(81,061,733)
(7,500,000)
(33,519,078)
(2,462,234)
(124,543,045)
913,578,800
913,578,800
4,257,027,215
8,649,349
(10,000,000)
(1,350,651)
405,160,781
E. Effects of exchange rate changes on cash and cash equivalents

F. Opening Cash and Cash Equivalent
G. Cash and cash equivalents at end of year (D+E+F) (*)
5,525,760,917
9,782,788,132
5,120,600,136
5,525,760,917
458,057,362
1,266,813,196
3,706,340,628
388,900,000
1,581,000
3,961,095,946
400,437,055
1,356,151,063
1,816,942,940
239,100,000
1,169,400
1,711,960,460
9,782,788,132
5,525,760,917
(*) Closing Cash & Cash Equivalent

Cash in Hand (including foreign currency)
Balance with Bangladesh Bank and its Agent Banks
Balance with Other Bank's and Financial Institutions
Money at Call on Short Notice
Prize Bond
Government Securities & FDR
Managing Director
Director
Director
Chairman
Dhaka,
30 March 2014
ACNABIN
87
88
-
Surplus of Revaluation Reserve for HTM Securities
Issuance of Share Capital
Redemption of Share Capital
Net Profit/(Loss) for the period
Dhaka,
30 March 2014
Managing Director
2,027,742,800
Increase in Statutory Reserve
Balance as on 31 December 2012
39,000,000
Prior Year's Adjustment
1,988,742,800
Balance as on 01 January 2012

2,941,321,600
913,578,800
39,000,000
1,988,742,800
Paid up
Capital
Particulars
90
90
90
90
Minority
Interest
Director
Share
Premium
178,609,568
35,395,875
143,213,693
194,845,145
16,235,577
178,609,568
Statutory
Reserve
Director
17,593,459
4,557,486
13,035,973
20,568,499
2,975,040
17,593,459
Revaluation
Reserve
Consolidated Statement of changes in Equity

8,920,366
5,071,854
3,848,512
8,920,366
8,920,366
Other
Reserve
98,940,110
77,202,683
21,737,427
113,472,327
3,764,870
10,767,347
98,940,110
Profit/(Loss)
Chairman
2,331,806,393
77,202,683
4,557,486
35,395,875
5,071,854
39,000,000
2,170,578,495
3,279,128,026
3,764,870
2,975,040
16,235,577
913,578,800
10,767,347
39,000,000
2,292,806,393
Total (Tk.)
(Amount in Taka)
Bangladesh Commerce Bank Limited

Balance Sheet
31.12.2013
Taka
31.12.2012
Taka
3
3.1
1,612,355,349
345,542,153
1,663,431,511
307,280,448
3.2
1,266,813,196
1,356,151,063
Balance with other banks and financial institutions

In Bangladesh
Outside Bangladesh
3,706,340,628
3,699,951,504
6,389,124
1,816,942,940
1,793,338,483
23,604,457
Money at call and short notice
388,900,000
239,100,000
Investments
Government
Others
4,735,655,028
3,962,676,946
772,978,082
2,796,488,915
1,713,129,860
1,083,359,055
Loans and Advances

Loans, Cash Credit, Overdrafts etc.
Bills purchased and discounted
Loans & Advances of BCI
Fixed assets including premises, furniture and fixtures
12,503,679,147
12,498,829,147
4,850,000
560,031,693
13,063,710,840
182,972,772
11,676,531,295
11,671,227,073
5,304,222
573,724,347
12,250,255,642
165,023,815
Other assets
814,215,479
613,564,135
Non-banking assets
10
Notes
PROPERTY AND ASSETS
Cash
(including foreign currencies)
7.14
TOTAL ASSETS
24,504,150,097
19,544,806,958
11
50,805,000
155,460,000
12
19,736,097,661
853,315,278
1,396,691,167
1,517,226,728
12,659,431,640
1,917,935,552
214,564,919
550,000,000
626,932,377
55,080,685
15,610,528,796
761,974,778
1,242,980,289
935,589,244
9,877,954,807
1,518,369,188
285,622,271
310,000,000
678,038,219
55,905,122
1,389,007,392
1,394,571,796
21,230,990,738
17,216,465,713
1,988,742,800
39,000,000
913,578,800
194,845,145
8,920,366
20,568,499
107,503,749
3,273,159,358
24,504,150,097
1,988,742,800
39,000,000
178,609,568
8,920,366
17,593,459
95,475,052
2,328,341,245
19,544,806,958
LIABILITIES AND CAPITAL

Liabilities
Borrowings from other banks, financial institutions and agents
Deposits and other accounts
Current Account and Other Accounts etc.
Short Term Deposits
Fixed Deposits
Deposit under Different Schemes
Bills Payable
Bank Deposit
Other Deposits
Deposits (BCI)
Other liabilities
12.1
12.3
12.4
13
Total Liabilities
Capital/Shareholders' Equity
Paid-up-Capital
Statutory Reserve
Other Reserve
Surplus/Deficit in Profit and Loss Account
Total Shareholders' Equity
Total Liabilities and Shareholders' Equity
14.2
15
16
17
18
89
Notes
Contingent Liabilities
19.1
19.2
TOTAL CONTINGENT LIABILITIES
31.12.2013
Taka
31.12.2012
Taka
792,496,105
357,479,616
691,220,053
159,635,288
84,373,621
802,196,848
387,162,419
714,819,019
110,832,029
84,373,621
2,085,204,684
2,099,383,936
2,085,204,684
2,099,383,936
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
Total Off-Balance Sheet items including contingent liabilities
Managing Director
Director
Director
Chairman
This is the Consolidated Balance Sheet referred to in our separate report of even date.
Dhaka,
30 March 2014
90
ACNABIN

Profit and Loss Account
Notes
Interest Income
Interest Paid on Deposits and Borrowings etc
Net Interest Income
Income from Investments
Commission, Exchange Earnings & Brokerage
20
21
22
23
24
Total operating income (A)

Legal Expenses
Postage, Stamp, Telecommunication etc.
Stationery, Printing, Advertisement etc.
Directors' Fee
Audit & Evaluation Fee
Depreciation & Repair of Fixed Assets
Other Expenses
Total operating expenses (B)
Profit before Provision (C)=A-B
Provision for classified loans
Provision for unclassified loans
Other provisions
Total provision (D)
Total profit/(loss) before taxes (C-D)
Provision for Taxation
Current tax
Deferred tax
Net profit/ (loss) after Taxation
Appropriations
Statutory Reserve
General Reserve
Dividends etc.
Retained surplus
Earning Per Share (EPS)
25
26
27
28
29
30
31
13.1.1
13.1.2
15
33
2013
Taka
2012
Taka
2,078,172,461
1,743,832,265
334,340,196
274,378,803
95,613,958
85,384,908
455,377,668
789,717,864
1,696,977,403
1,290,333,871
406,643,531
319,442,510
95,767,341
64,403,335
479,613,186
886,256,717
372,532,349
95,620,105
1,026,649
13,435,616
14,664,947
1,663,870
763,750
690,000
60,407,188
100,411,012
661,215,486
128,502,379
25,000,000
13,946,236
8,378,260
47,324,496
81,177,883
63,680,955
67,953,707
(4,272,752)
17,496,928
313,834,824
77,073,470
1,616,240
5,555,157
10,170,152
8,653,290
811,486
82,875
44,277,825
123,718,957
585,794,276
300,462,441
54,000,000
3,525,427
65,957,637
123,483,064
176,979,376
75,767,347
65,000,000
10,767,347
101,212,029
16,235,577
16,235,577
1,261,351
0.88
35,395,875
35,395,875
65,816,154
5.09
Managing Director
Director
Director
Chairman
Dhaka,
30 March 2014
ACNABIN
91

Cash Flow Statement
31.12.2013
Taka
A. Cash flow from operating activities

Interest receipts
Interest payments
Dividend receipts
Fees and commission receipts in cash
Cash paid to employees
Cash paid to suppliers
Income Taxes paid
Receipts from other operating activities (item-wise)
Payments for other operating activities (item-wise)
Operating profit before changes in operating
Assets and Liabilities
31.12.2012
Taka
2,015,661,420
(1,334,459,333)
1,672,633
95,613,958
(374,196,219)
(14,664,947)
(122,224,981)
85,384,908
(100,411,012)
1,461,416,146
(1,141,701,253)
3,327,843
95,767,341
(322,488,114)
(10,170,152)
(174,073,363)
64,403,335
(123,718,957)
252,376,427
(147,237,174)
Increase/(Decrease) in operating assets & liabilities

Statutory Deposits
Loan & advance to customers
Other assets (item-wise)
Deposits from other banks
Deposits from customers
Other liabilities account of customers
Net cash flow from operating activities (A)
B. Cash flow from investing activities
Purchase of property, plant & equipment
Purchase/sale of subsidiary
Net cash used in investing activities (B)
C. Cash flow from financing activities
Receipts from issue of debt instruments
Payment for redemption of debt instruments
Receipts from issuing ordinary share/ rights share
Dividend paid
Net cash flow from/(used in) operating activities (C)
D. Net increase/(decrease) in Cash and Cash Equivalent (A+B+C)
3,089,662,342
(16,235,577)
(813,455,199)
(200,651,344)
240,000,000
3,885,568,865
(5,564,404)
3,342,038,769
660,596,511
(35,395,875)
(915,814,198)
(277,480,240)
(492,890,000)
2,226,530,062
155,646,762
531,359,337
(17,948,957)
(17,948,957)
(72,720,347)
(7,500,000)
(80,220,347)
913,578,800
913,578,800
4,237,668,612
433,138,990
E. Effects of exchange rate changes on cash and cash equivalents

F. Opening Cash and Cash Equivalent
G. Cash and cash equivalents at end of year (D+E+F) (*)
5,432,604,310
9,670,272,922
4,999,465,320
5,432,604,310
345,542,153
1,266,813,196
3,706,340,628
388,900,000
3,962,676,946
307,280,448
1,356,151,063
1,816,942,940
239,100,000
1,713,129,860
9,670,272,922
5,432,604,310
32
(*) Closing Cash & Cash Equivalent

Cash in Hand (including foreign currency)
Balance with Bangladesh Bank and its Agent Banks
Balance with Other Bank's and Financial Institutions
Money at Call on Short Notice
Government Securities
Managing Director
Director
Director
Chairman
The annexed note forms an integral part of these financial statements.
Dhaka,
30 March 2014
92
ACNABIN

-
Dhaka,
30 March 2014
Managing Director
2,027,742,800
39,000,000
1,988,742,800
2,941,321,600
913,578,800
39,000,000
1,988,742,800
Paid up
Capital
Particulars
Director
Share
Premium
178,609,568
35,395,875
143,213,693
194,845,145
16,235,577
178,609,568
Statutory
Reserve
Director
17,593,459
4,557,486
13,035,973
20,568,499
2,975,040
17,593,459
Revaluation
Reserve
Statement of changes in Equity

8,920,366
5,071,854
3,848,512
8,920,366
8,920,366
Other
Reserve
95,475,051
65,816,153
29,658,898
107,503,749
1,261,350
10,767,348
95,475,051
Profit/(Loss)
Chairman
2,328,341,245
65,816,153
9,629,340
35,395,875
39,000,000
2,178,499,876
3,273,159,358
1,261,350
2,975,040
16,235,577
10,767,348
913,578,800
39,000,000
2,289,341,244
Total (Tk.)
(Amount in Taka)
93
94
7,072,599,550
20,000,000
7,092,599,550
50,805,000
3,604,399,412
3,655,204,412
1,033,720,286
Net Liquidity Gap
Managing Director
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
Director
5,817,741,800
2,998,796,322
539,710,601
3,538,506,923
3,699,951,504
156,213,278
5,432,553,710
5,932,992
61,597,239
9,356,248,723
3-12
Months
498,274,124
2,998,796,322
176,223,250
3,175,019,572
1,347,723,380
1,651,616,833
7,011,294
666,942,189
3,673,293,696
1-5
Years
Director
Balance with other banks and financial institutions, Money at call on short notice are on the basis of their maturity.
Investments are on the basis of their maturity.
Loans and advances are on the basis of their maturity.
Fixed assets including premises land & buildings, furniture & fixtures are on the basis of their useful life.
Other assets are on the basis of their adjustment.
Borrowings from Bangladesh Bank, other banks, financial institutions and agents are on the basis of their payment.
Deposits and other accounts are on the basis of their maturity and payment.
Provision and other liabilities are on the basis of their adjustment.
The following assumptions have been applied in preparing the maturity analysis:
Dhaka,
30 March 2014
Net result of Liquidity Statement represents the "Shareholders' Equity" of Bank
(4,526,500,680)
264,620,231
2,299,378,115
935,026
1,165,498
2,566,098,870
1-3
Months
1,612,355,349
6,389,124
388,900,000
2,127,059,172
542,100,979
596,155
11,523,919
4,688,924,698
Upto 01
Month
As at 31 December-2013
Cash in hand & with Bangladesh Bank

Balance with other Banks & Financial Institutions
Money at Call and short notice
Investment
Loans and Advances
Fixed Assets including premises, furniture and fixtures
Other Assets
Non-Banking Assets
Total Assets
LIABILITIES:
Borrowing from Bangladesh Bank, Other Banks
Financial Institutions and Agents
Deposits
Other Liabilities
Total Liabilities
ASSETS:
Particulars

Liquidity Statement (Asset and Liability Maturity Analysis)
449,923,828
3,116,586,740
653,073,542
3,769,660,282
840,038,967
3,138,061,204
168,497,305
72,986,634
4,219,584,110
More than
5 Years
Chairman
3,273,159,358
50,805,000
19,791,178,346
1,389,007,393
21,230,990,739
1,612,355,349
3,706,340,628
388,900,000
4,735,655,028
13,063,710,841
182,972,772
814,215,479
24,504,150,097
-
Total
(Amount in Taka)

For the year ended 31 December, 2013
1.0
Legal Status and Nature of the Company

The Bangladesh Commerce Bank Limited (Reformed BCI Limited) was incorporated in Bangladesh as a Public
Limited Company as on the 01 June 1998 under Companies Act 1994 and commenced commercial operation on the
16 September 1999. It has 42 branches all over Bangladesh.
The principal place of business is at the Registered Office at Eunoos Trade Center, Level 22, 52-53 Dilkusha C/A,
Dhaka, Bangladesh. The principal activities carried out by the bank include all kinds of commercial banking
activities/services to its customers through its branches.
1.1
Subsidiary of the Bank

Commerce Bank Securities & Investments Limited (CBSIL), is fully owned subsidiary company of Bangladesh
Commerce Bank Limited incorporated as a private limited company on 20 September 2010 with the registrar of
Joint Stock Companies & Firms, Dhaka vide certificate of incorporation no. C-81290/09. CBSIL started its operation
from 01 June 2011. The main objective of the company for which was established are to carry out the business of
full-fledged merchant banking activities like issue management, portfolio management, underwriting etc.
2.0
SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION OF FINANCIAL STATEMENTS
2.1
Basis of preparation of the financial statements

The consolidated financial statements of the group (comprising the Bank and its subsidiary) financial statements of
Bangladesh Commerce Bank Limited as at and for the year ended 31 December 2013 have been prepared under
the historical cost convention, except for Government Securities which are stated at fair value and in accordance
with Bangladesh Financial Reporting Standards (BFRSs), the First Schedule (Section 38) of the Bank Companies
Act 1991, as amended by the BRPD Circular 14 dated 25 June 2003, the rules and regulations issued by
Bangladesh Bank, the Companies Act 1994 and other rules and regulations are applicable in Bangladesh. 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:
i)
Investment in shares and securities

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 has been made for any loss arising from diminution in value of investment; otherwise
investments are recognized at cost.
ii)
Revaluation gains/losses on Government securities

BFRS: As per requirement of BAS 39 where securities will fall under the category of Held for Trading (HFT), any
change in the fair value of held for trading assets is recognized through profit and loss account. Securities
designated as Held to Maturity (HTM) are measured at amortised cost method and interest income is recognised
through the profit and loss account.
Bangladesh Bank: According to DOS CIrcular 05 dated 26 May 2008 and subsquently clarification in DOS Circular
05 dated 28 January 2009, 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.
iii)
Provision on loans and advances/investments

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.
95

Bangladesh Bank: As per BRPD circular No.14 dated 23 September 2012, BRPD circular No. 19 dated 27
December 2012 and BRPD circular No. 05 dated 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.
iv)
Recognition of interest in suspense

BFRS: Loans and advances to customers are generally classified as 'loans and receivables' as per BAS 39 and
interest income is recognised through effective interest rate method over the term of the loan. Once a loan is
impaired, interest income is 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.
Other comprehensive income
v)
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.
Financial instruments - presentation and disclosure
vi)
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.
vii)
Financial guarantees
BFRS: As per BAS 39, financial guarantees are contracts that require an entity to make specified payments to
reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance
with the terms of a debt instrument. Financial guarantee liabilities are recognised initially at their fair value, and the
initial fair value is amortised over the life of the financial guarantee. The financial guarantee liability is subsequently
carried at the higher of this amortised amount and the present value of any expected payment when a payment
under the guarantee has become probable. Financial guarantees are included within other liabilities.
Bangladesh Bank: As per BRPD Circular no. 14 dated 25 June 2003 financial guarantees such as letter of credit,
letter of guarantee will be treated as off-balance sheet items. No liability is recognised for the guarantee except the
cash margin.
viii)
Cash and cash equivalent

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

Bangladesh Bank: As per BRPD Circular no. 14 dated 25 June 2003 there must exist a face item named Nonbanking asset.
Cash flow statement
x)
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.
Balance with Bangladesh Bank: (Cash Reserve Requirement)
xi)
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.
96

xii)
Presentation of intangible asset

BFRS: An intangible asset must be identified and recognised, and the disclosure must be given as per BAS 38.
Bangladesh Bank: There is no regulation for intangible assets in BRPD Circular no. 14.
xiii)
Off - balance sheet items

BFRS: There is no concept of off-balance sheet items in any BFRS; hence there is no requirement for disclosure of
off-balance sheet items on the face of the balance sheet.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 off balance sheet items (e.g. Letter of credit,
Letter of guarantee etc.) must be disclosed separately on the face of the balance sheet.
xiv)
Loans and advances/Investments net of provision

BFRS: Loans and advances/Investments should be presented net of provision.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 provision on loans and advances/investments
are presented separately as liability and can not be netted off against loans and advances.
2.2
Consolidation Procedure
The consolidated financial statements include the financial statements of Bangladesh Commerce Bank Limited and
its subsidiary Commerece Bank Seceurities & Investments Limited made up to the end of the financial year.
The consolidated financial statements have been prepared in accordance with Bangladesh Accounting Standard 27:
Consolidated and Separate Financial Statements. The consolidated financial statements are prepared to a common
financial year ended 31 December 2013."
2.3
Subsidiary
Subsidiary is that enterprise which is controlled by the Bank. Control exists when the Bank has the power, directly or
indirectly, to govern the financial and operating policies of an enterprise from the date that control commences until
the date that control ceases. The financial statements of subsidiary are included in the consolidated financial
statements from the date that control effectively commences until the date that the control effectively ceases.
Subsidiary companies are consolidated using the purchase method of accounting.
2.4
Use of estimates and judgments

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. Revisions to accounting estimates are
recognized in the period in which the estimates is revised and in any future periods affected.
2.5
Revenue Recognition
The revenue during the period under audit is recognized satisfying the conditions as specified in Bangladesh
Accounting Standards (BAS) 18 Revenue Recognition. Details are as under:
Interest/ income
(i) Interest is calculated on daily product on unclassified loans and advances and accounted for quarterly on
accrual basis.
(ii) Interest is charged on classified loans and advances as per Bangladesh Bank BRPD circular No. 16 of 1989 and
such interest was not taken into income account upon realization.
(iii) Dividend income is recognized at the time when it is realized.
(iv) Commission and discounts on bills purchased and discounted are recognized at the time of realization. "
Fees, commission and discounts income
Fees, commission and discounts on bills purchased and discounted are recognized at the time of realization.
Investment income
Interest income on investments is recognized on accrual basis. Capital gain on investments in shares is also
included in investment income. Capital gain is recognized when it is realized.
Interest paid and other expenses
In terms of the provisions of BAS-1 "Presentation of Financial Statements" interest/profit and other expenses are
recognized on accrual basis.
2.6
Earnings Per Share (EPS)

The Company calculates Earnings Per Share (EPS) in accordance with BAS 33 Earnings Per Share which has
been shown on the face of Profit and Loss Account. This has been calculated by dividing the basis earnings by the
number of ordinary shares outstanding during the year.
2.7
Foreign Currency Transactions

Transaction in Foreign Currencies are translated into Bangladesh Taka and recorded at the ruling Exchange rates
applicable on the dates of transactions in accordance with Bangladesh Accounting Standards (BFRS/BAS) - 21 The
Effects of Changes in Foreign Exchange Rates. As such -
97

(i) Assets and liabilities denominated in foreign currency are translated into Bangladesh Taka at the balance sheet
date at the mid rates.
(ii) Transactions in foreign currencies are converted into Bangladesh Taka currency at the rate of exchange
prevailing on the dates of such transactions and any gains or losses thereon are adjusted to renenue through
foreign exchange trading account.
2.8
Reporting Period
These financial statements of the Bank and its subsidiary cover one calendar year from 1 January 2013 to 31
December 2013.
2.9
Statements of Cash Flows

Cash Flow Statement is prepared principally in accordance with BAS 7 " Statement of Cash Flows" under direct
method as per the guidelines of BRPD circular no-14 dated 25 June 2003. The statement of Cash Flows shows the
structure & changes in cash & cash equivalents during the year. Cash Flows during the period have been clssified
as operating activities, investing activities & financing activities.
2.10
Statements of Changes in equity

The statement of changes in equity reflects information about the increase or decrease in net assets or
wealth.Statement of changes in equity has been prepared in accordance with Bangladesh Accounting Standard
(BAS) "Presentation of Financial Statements" and relevant guidelines of Bangladesh Bank.
2.11
Statement of Liquidity
The Liquidity statement has been prepared in accordance with the remaining maturity grouping of the value of the
assets and liabilities as on 31 December 2013.
2.12
Taxation
The expense comprises current and deferred tax. Current tax and deferred tax is recognised in profit or loss except
to the extent that it relates to a business combination or items recognised directly in equity.
2.12.1 Current Tax

In compliance with BAS-12 " Income Taxes", provision for current income tax has been made @ 42.50% on
business income,@ 20% on dividend income and @ 10% on capital gain on sale of shares, after considering some
of the add backs to income and disallowances of expenditure as per Income Tax Ordinance 1984 and time to time
amendment to issue different S.R.O and circular issued by the National Board of Revenue.
2.12.2 Deferred taxation

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 balance sheet date. The impact on the account of changes in the deferred
tax assets and liabilities has also been recognised in the profit and loss account as per BAS-12 "Income Taxes".
2.13
Assets and basis of their valuation
2.13.1 Cash and cash equivalents

Cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh Bank and
highly liquid financial assets which are subject to insignificant risk of changes in their fair value, and are used by the
Bank management for its short-term commitments.
2.13.2 Loans & Advances and Provision

Interest is calculated on daily product basis but charged and accounted for quarterly on accrual basis. Interest on
classified loans is kept in interest suspense account as per Bangladesh Bank guidelines and such interest is not
accounted for as income until realized from borrowers. Interests are not charged on bad / loss loans as per
instructions of Bangladesh Bank. Advances are stated at gross value.
Provision for loans and advances is made on the basis of year-end review by the management and on the basis of
instructions contained in Bangladesh Bank BCD Circular No- 34 of 1989, BCD Circular No. 20 dated 27 December
1994, BRPD Circular No-12 dated 04 September 1995, BRPD Circular No- 16 dated 06 December 1998, BRPD
Circular No-9 dated 14 May 2001, BRPD Circular No-8 of 2005, BRPD Circular No-14 dated 23 September 2012,
BRPD Circular No-19 dated 27 December 2012 and BRPD Circular No-05 dated 29 May 2013 at the following rates:
98

Particulars
Rate
General Provision on;

Unclassified (Including SMA) general loans and advances
1%
Unclassified (Including SMA) Small and Medium Enterprise Financing (SMEF)
0.25%
Unclassified (Including SMA) Loans to BHs/MBs/SDs against Share
2%
Unclassified (Including SMA) Loans for Housing Finance,Professionals and Small Enterprise
5%
Unclassified Consumer finance other than Loans for Housing Finance,Professionals and Small Enterprise
5%
Short term agri credit and micro credit
5%
Off-Balance Sheet Exposure
1%
Specific Provision on;

Substandard loans and advances other than Short term agri credit and micro credit
20%
Doubtful loans and advances other than Short term agri credit and micro credit
50%
Bad / loss loans and advances
100%
Doubtful Short term agri credit and micro credit
5%
2.13.3 Provision for off Balance Sheet Exposures

General provision for off balance sheet exposures has been made @ 1% on period end balance of total off balance
sheet exposures as per BRPD circular No. 8 and 10 dated 07 August, 2007 and 18 September, 2007 respectively
issued by Bangladesh Bank.
2.13.4 Investment
Values of investments have been shown as under:
Treasury Bills : Face Value (Including unearned Income thereon)
Prize Bond : Cost Price
Shares and Debenture : Cost Price"
2.14
Fixed Assets and Depreciation

(i) Assets are stated at cost less accumulated depreciation.
(ii) Depreciation has been charged at the following rates on reducing balance method on all fixed asset other than
motor vehicle, machinery and computer, which are depreciated on straight-line basis:
Name of Assets
Rate of depreciation
Furniture
10%
Interior Decoration
20%
Machinery
20%
Vehicles
20%
Computer
30%
2.14.1 Intangible assets

Intangible asset is an identifiable non-monetary asset without physical substance. An intangible asset is recognised
if it is probable that the future economic benefits that are attributable to the assets will flow to the entity and the cost
of the asset can be measured reliably in accordance with BAS 38: "Intangible Assets".
Subsequent expenditure on intangible asset is capitalised only when it increases the future economic benefits
embodied in the specific assets to which it relates. All other expenditure is expensed as incurred.
The software used by BCBL represents the value of computer application software licensed for the use of the bank.
Software is carried at cost less accumulated amortisation and any impairment losses. Initial cost comprises license
fees paid at the time of purchase and other directly attributable expenditure that are carried in customising the
software for its intended use. Software is amortised using the straight line method over the estimated useful life of 3
(Three) years commencing from the month at which the application software is made available for use.
2.15
Reconciliation of Books of Accounts

Books of account with regard to inter bank (in Bangladesh and outside Bangladesh) are reconciled and no material
difference was found which might affect the financial statement significantly.
99

2.16
Retirement benefits of the employees

1) Employee benefit for gratuity is expensed on payment of the benefit.
2) The Bank operates a Bangladesh Commerce Bank Ltd. Gratuity Fund, provision for which is made annually
covering all its eligible employees. It is operated by a separate Board of Trustees of the Bank.
2.17
Auditors work-hour
The external auditor of the Bank ACNABIN, Chartered Accountants worked for more than of 2,950 man-hours at the
Banks, Head Office and branches. During their audit, they audited above 80% of the Banks risk weighted assets as
on the reporting date.
2.18
Audit Committee
Banks Audit Committee was reconstituted by the Board of Directors of the Bank in its 3 (three) meeting held during
the year. The Audit Committee is as under:
Name of Assets
Status with
the Bank
Status with
the Committee
Educational
Qualification
Director
Chairman
BA (Hons)
Director
Member
MSS
Mr. Rana Kaiser
Director
Member
BBA
Mr. Dr. Md. Zillur Rahman
Director
Member
B.com(Hons), M.com Ph.D
During the year 2013, 3 (three) meeting of the Audit Committee of the Board were held in which the following issued
among others was discussed:
- Reviewing the terms of reference of the Committee as mentioned in BRPD Circular No. 11
- Reviewing the comprehensive inspection report of Bangladesh Bank for the year 2008 and status of compliance
thereof.
- Reviewing the internal inspection report of different branches of Bangladesh Commerce Bank Limited conducted
by Banks Audit & Inspection team from time to time.
- Reviewing the HR policy, Share portfolio, Budget, Internal control, staff performance etc.
2.19
Risk Management
The risk Management of Bangladesh Commerce Bank Limited evolves identification, measurement, monitoring and
controlling risks to ensure that:
a) The Banks risk exposure is within the limits established by Board of Directors.
b) The Banks risk taking decisions are in line with the business strategy and objectives set by Board of Directors of
the Bank as well as Bangladesh Bank guidelines.
c) The Banks risk taking decisions are explicit and clear.
d) Sufficient capital as a buffer is available to take risk.
i.
Market Risk
Bangladesh Commerce Bank Limited is exposed to market risk in variety of ways. Market risk exposure is mainly
explicit in portfolio of Bangladesh Government Treasury Bills and treasury Bonds held under HFT (held for trading)
conversely, Market Risk is implicit such as interest Rate Risk due to mismatch of loans and Foreign Exchange Risk
due to maturity mismatch of foreign currency positions. The portfolios are being revalued at an interval at current
market price of marking to market basis. Besides, the portfolios have been synchronized in line with Bangladesh
Bank guidelines of risk based Capital Adequacy (BASEL-II) for interest rat, risk and foreign exchange risk.
Interest Rate Risk
Interest Rate Risk arises when there is a mismatch between positions. The Banks lending, funding and investment
activities give arise to Interest Rate Risk. The Bank Assess Interest Rate Risk in earning perspective which is
traditional approach to Interest Rate Risk assessment and obtained by measuring the changes in the Net Interest
Income (NII) on Net Interest Margin (NIM) i.e. the different between total interest income and the total interest
expenses.
Foreign Exchange Risk
The Bank is also exposed to Interest Rate Risk, which arises from the maturity mismatching of foreign currency
position. It also includes settlement risk. The total holding position is being revalued on marking to market on
monthly basis.
100

Equity risk
Equity risk arises from movement in market value of equities held. The risks are monitored by Investment Committee
under a well designed policy framework.
ii.
Credit Risk
It arises mainly form lending, trade finance, leasing and treasury businesses. This can be described as potential loss
arising from the failure of a counter party to perform as per contractual agreement with the Bank. The failure may
result from unwillingness of the counter party or decline in his/ her financial condition. Therefore, the Banks credit
risk management activities have been designed to address all these issues. Steps have already been implemented
of Bangladesh Bank requirements and some are in under process.
A typical Credit Risk management framework in Bangladesh Commerce Bank Limited is broadly categorized into
following main component:
a) Boards and senior management oversight.
b) Organizational Structure.
c) Systems and Procedures for identification acceptance, measurement, monitoring and control risks.
The Bank board of Directors approved Credit Risk strategy and significant policies relating to Credit Risk. The Board
of Directors of Bangladesh Commerce Bank Limited also set the parameter to maintain Banks overall credit
exposures. The Bank also operates within a sound and well-defined criteria for new credits as well as the expansion
of existing credits.
iii.
Liquidity Risk
Bangladesh Commerce Bank Limited considers Liquidity Risk a major risk for Bank. It arises when the cushion
provided by the liquid assets are not sufficient enough to meet its obligation. The Board of Directors of the Bank
enunciated specific polices on particular aspects of liquidity risk management such as (a) composition of Assets and
Liabilities (b) diversification and stabilities of liabilities (c) access to enter-bank market. The Board of Directors of
Bangladesh Commerce Bank Limited approved Liquidity Contingencies Plan in policy guideline in line with
Bangladesh Banks Core Risk Guidelines. The Board of Directors of Bangladesh Commerce Bank Limited has also
approved specific Risk Limits for proper liquidity management of the Bank.
iv.
Reputation Risk Arising from Money Laundering Incidences

Money laundering risk is defined as the loss of reputation and expenses incurred as penalty for being negligent in
prevention of money laundering. The bank has already taken many steps required by Bangladesh Bank for
complying with reputation risk.
v.
Operational Risk
Internal Control and Compliance is a process to provide Immunization and a high level of protection from errors,
improper process, frauds, surprises and inability to comply with legal and regulatory requirements. The bank has
already taken many steps required by Bangladesh Bank for complying with operational risk.
vi.
Risk Management of Information and Communication Technology (ICT)

The ICT Risk Management is a full blown process for the bank to ensure maintenance or recovery including
uninterrupted services to customers an all adverse events such as natural disasters, technological failures, human
error etc. In order to organize Network resources, the bank pursues a central policy for administrator to secure
intranet and internet network access. A security policy is in place with a formal statement of the rules that people
who are given access must abide by and adhere to what is laid in the policy. A disaster recovery plan covers data,
hardware and software critical for business to restart in the event of a natural or human caused disaster. The steps
have been implemented.
vii.
Fraud & Forgeries

The term Fraud commonly includes activities such as theft, corruption, conspiracy, embezzlement, money
laundering, bribery & extortion. Fraud risk is one of the components of Operational risk. Operational risk focuses on
the risks associated with errors or events in transaction processing or other operation. We are absolutely committed
to maintain an honest, open & well intentioned atmosphere within the organization. It is, therefore, also committed to
fraud prevention and fraud detection. Fraud & Forgery has emerged as one of the major threats in banking sector
with regular development of avenues by the fraudsters.
In the year 2013, IC&C Division, BCBL, has started to further develop the Risk & Fraud awareness culture among
the employees & reduce the likelihood of fraud occurring in the Bank. Internal Control & Compliance Division of
Bangladesh Commerce Bank Limited has arranged to conduct Spot Inspection on Anti Fraud Internal Control (AFIC)
systems to protect the bank from anticipated fraud & forgery in addition to regular comprehensive Audit & Inspection
in the branches.
In connection with dealing the situation and ensuring safety checking measures against fraud & forgery related
issues, IC&C division has developed a questionnaire/ Checklist to perform spot AFIC, which shall continue upon
regular review, up-gradation & improvisation.
101

2.20
Compliance of Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards
(BFRS)
The Institute of Chartered Accountants of Bangladesh (ICAB) is the sole authority for adoption of Bangladesh
Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS) in context of Bangladesh from
the standards adopted by International Federation of Accountants Committee (IFAC) as International Accounting
Standards (IAS) and International Financial Reporting Standards (IFRS). While preparing the financial statements,
Bangladesh Commerce Bank Limited applied most of the BAS and BFRS, details of which are given below:
BAS No.
Status
Presentation of Financial Statements
Name of BAS
Applied
Inventories
Applied
Statements of Cash Flow
Applied
Accounting Policies, Changes in Accounting Estimates and Errors
Applied
Events after the Reporting Date
10
Applied
Construction Contracts
11
N/A
Income Taxes
12
Applied
Property, Plant and Equipment
16
Applied
Lease
17
N/A
Revenue
18
Applied
Employee Benefits
19
Applied
Accounting for Government Grants and Disclosure of Government Assistance
20
N/A
The effects of Changes in Foreign Exchange Rate
21
Applied
Borrowing Cost
23
Applied
Related Party Disclosures
24
N/A
Accounting for Investments
25
Applied
Accounting and Reporting by Retirement Benefit Plans
26
Applied
Consolidated and Separate Financial Statements
27
Applied
Investment in Associates
28
N/A
Disclosures in the Financial Statements of Banks and similar Financial Institutions
30
Applied
Interest in Joint Ventures
31
N/A
Financial Instrument: Presentation
32
Earnings per Share
33
Applied
Interim Financial Reporting
34
Applied
Impairment of Assets
36
Applied
Provisions, Contingent Liabilities and Contingent Assets
37
Applied
Intangible Assets
38
Applied
Financial Instruments: Recognition and Measurement
39
Investment Property
40
N/A
Agriculture
41
N/A
BFRS No.
Status
Share-based Payment
N/A
Business Combinations
N/A
Insurance Contracts
N/A
Non-current assets Held for Sale and Discontinued Operations
Applied
Exploration for and Evaluation of Mineral Resources
N/A
Financial Instruments: Disclosures
Operating Segments
Applied
Name of BFRS
* Relevant disclosures are made according to the requirement of Bangladesh Bank
2.21
General
(1) Wherever considered necessary figures of previous year have been rearranged for comparison purpose.
(2) Figures appearing in these Financial Statements have been rounded off to the nearest Taka."
102
31.12.2013
Taka
3
3(a)
3.1
3.1(a)
3.2
Cash
Cash in hand
(Note 3.1)
(Note 3.2)
Consolidated Cash
CBSIL
Cash in Hand
In local currency
In foreign currencies
Consolidated Cash in Hand

CBSIL
(Note 3.1)

Balance with Bangladesh Bank
In local currency
In foreign currencies
Balance with Sonali Bank in local currency (as agent of Bangladesh Bank)
3.2(a)
3.3
Consolidated Balance with Bangladesh Bank and its agent bank(s)

CBSIL
(Note 3.2)
31.12.2012
Taka
345,542,153
1,266,813,196
1,612,355,349
307,280,448
1,356,151,063
1,663,431,511
1,612,355,349
112,515,209
1,724,870,558
1,663,431,511
93,156,607
1,756,588,118
345,542,153
345,542,153
307,280,448
307,280,448
345,542,153
112,515,209
458,057,362
307,280,448
93,156,607
400,437,055
1,167,787,020
75,984,553
1,243,771,573
23,041,623
1,266,813,196
825,380,491
513,862,068
1,339,242,559
16,908,504
1,356,151,063
1,266,813,196
1,266,813,196
1,356,151,063
1,356,151,063
Statutory Deposit
As per MPD circular No- 04 dated 01 December 2010 of Bangladesh Bank (effective from 15 December 2010), all
scheduled banks have to maintain a CRR of minimum 5.5 % on daily basis and 6.0 % on bi-weekly basis on weekly
average demand and time liabilities of the base month which is two months back of reporting month (i.e. CRR of December
2013 was based on weekly average balance of October 2013). BCBL has been maintaing it bi-weekly basis.
3.4
Cash Reserve Ratio (CRR) : 6% of Average Demand & Time Liabilities

Required Reserve
Actual Reserve held with Bangladesh Bank
TT in Transit
Surplus/(Deficit)
Maintained Ratio
3.5
Statutory Liquidity Ratio (SLR) : 19%

of Average Demand & Time Liabilities
Required Reserve
Actual Reserve held
Surplus/(Deficit)
Maintained Ratio
Average Deposit
1,110,524,060
1,167,787,020
1,167,787,020
57,262,960
6.31%
801,510,000
825,380,000
825,380,000
23,870,000
6.18%
3,516,659,540
5,515,441,024
1,998,781,484
29.80%
18,508,734,400
2,538,114,000
2,766,201,000
228,087,000
20.71%
13,358,495,250
103
31.12.2013
Taka
4
BALANCE WITH OTHER BANKS AND FINANCIAL INSTITUTIONS

In Bangladesh
(Note 4.1)
Outside Bangladesh (NOSTRO A/C)
(Note 4.2)
4(a)
4.1
3,699,951,504
6,389,124
3,706,340,628
1,793,338,483
23,604,457
1,816,942,940
3,706,340,628
3,706,340,628
1,816,942,940
1,816,942,940
Current Deposits:
Agrani Bank Ltd.
Janata Bank Ltd.
Pubali Bank Limited
Islami Bank Bangladesh Limited
Bangladesh Krishi Bank
Trust Bank Ltd. POS
40,079,943
25,087,061
14,631,481
1,000
360,401
81,518,923
9,948,357
71,543,219
2,188
3,915
1,000
20,244
STD Accounts:
Agrani Bank Ltd.
Janata Bank Ltd.
Uttara Bank Limited
Pubali Bank Limited
Islami Bank Limited
18,621,561
12,491,017
114,007
6,012,909
3,628
41,819,560
9,900,642
29,806,363
113,555
1,999,000
3,641,250,000
271,250,000
50,000,000
820,000,000
500,000,000
650,000,000
200,000,000
700,000,000
200,000,000
250,000,000
3,699,951,504
1,670,000,000
20,000,000
80,000,000
1,000,000,000
100,000,000
200,000,000
20,000,000
200,000,000
50,000,000
1,793,338,483
CONSOLIDATED BALANCE WITH OTHER BANKS AND FINANCIAL INSTITUTIONS

(Note 4)
CBSIL
In Bangladesh
FDR Accounts:
The City Bank Ltd.
Mutual Trust Bank Ltd.
Hajj Finance Company Ltd.
People's Leasing and Financial Services Ltd.
Uttara Finance and Investment Ltd.
Reliance Finane Ltd.
Investment Corporation of Bangladesh
Union Capital Ltd.
International Leasing & Financial Services Ltd.
Industrial and Infrastructure Development Finance Company Ltd.
Lanka Bangla Finance Ltd.
Bangladesh Finance & Investment Limited
4.1.1
31.12.2013
Taka
Balance With other Bank & Financial Institutions (Current Deposits and STD Accounts)
Name of Banks &
Financial Institutions
Janata Bank Limited
Pubali Bank Limited
Agrani Bank Limited
Uttara Bank Limited
Bangladesh Krishi Bank
Islami Bank Ltd
Trust Bank POS
Grand total
104
31.12.2012
Taka
On Demand
14,631,481
25,087,061
1,000
360,401
40,079,943
Up to 1
Month
-
1 to 3
Months
12,491,017
6,012,909
114,007
3,628
18,621,561
6 Months
to 1 year
-
1 to 5
years
-
Over
5 years
-
Total
27,122,498
6,012,909
25,087,061
114,007
1,000
3,628
360,401
58,701,504

31.12.2013
Taka
4.2
Outside Bangladesh
6,389,124
23,604,457
Non Interest- bearing Accounts

Interest-bearing Accounts
6,389,124
-
23,604,457
-
156
25,941
1,807,176
11,246
4,162,471
12,900
17,160
162,243
778
71,012
107,935
10,108
6,389,124
6,389,124
167
4,133,573
9,156
11,535
4,269,672
11,637
17,432
19,125
2,393
13,482,106
1,636,416
11,245
23,604,457
23,604,457
Non Interest-bearing Accounts

Habib Metropolitan Bank, Pakistan
Sonali Bank Ltd. Kolkata
Mashreq Bank PSC, NY
NIB Bank Karachi
Standard Chartered Bank, Kolkata, India
Sonali Bank Ltd. London
Standard Chartered Bank, Frankfurt
Standard Chartered Bank, Nepal
Standard Chartered Bank, NY
Habib American Bank - NY
ICICI Bank - HK
United bank of India,Kolkata
Total
4.2.1
31.12.2012
Taka
Non Interest bearing A/C (Outside Bangladesh NOSTRO A/C)

Particulars
31.12.2013
Currency Amount in
Name
FC
Habib Metropolitan Bank, Pakistan ACU$

Sonali Bank Ltd. Kolkata
ACU$
Mashreq Bank PSC, NY
USD$
NIB Bank Karachi
ACU$
Standard Chartered Bank, Mumbai, India
ACU$
USD$
GBD?
Standard Chartered Bank, Frankfurt EURO
Standard Chartered Bank, Nepal ACU$
Standard Chartered Bank, NY
USD$
Habib American Bank - NY
USD$
ICICI Bank - HK
USD$
United bank of India, Kolkata
USD$
2.00
333.64
23,243.42
144.64
53,536.60
165.91
135.14
1,528.76
10.00
913.34
1,388.23
130.00
81,531.68
31.12.2012
Conversion
Rate per
Unit FC
Conversion
Rate per
Unit FC
Amount in
BDT
Amount in
FC
77.75
77.75
77.75
77.75
77.75
77.75
126.98
106.13
77.75
77.75
77.75
77.75
155.50
25,940.51
1,807,175.91
11,245.76
4,162,470.65
12,899.50
17,160.47
162,243.17
777.50
71,012.19
107,934.88
10,107.50
6,389,123.54
2.09
51,830.08
114.81
144.64
53,536.60
145.91
135.14
181.51
30.00
169,049.53
20,518.71
141.00
79.75
166.68
79.75
4,133,573.27
79.75
9,156.37
79.75
11,535.39
79.75
4,269,672.34
79.75
11,636.67
128.99
17,431.90
105.36
19,124.76
79.75
2,392.57
79.75 13,482,105.74
79.75
1,636,416.37
79.75
11,245.09
295,830.02
23,604,457.15
Amount in
BDT
4.2.2
Balance with other Bank and financial institutions includes Taka 41,62,424 equivalent to USD 53,536 which was freezed by
Standard Chartered Bank (former the American Express Bank) based on the order of the Calcutta High court against which
provision is yet to be made.
31.12.2013
31.12.2012
Taka
Taka
4.2.3
Maturity grouping of foreign currency balances

On demands
Upto 1 month
1-3 month
3-6 month
6-9 month
9 months to 1 year
1 year and above
MONEY AT CALL AND SHORT NOTICE

Banking company
ICB Islamic Bank Ltd. @ 8.50%
Standard Bank Ltd @ 7.00%
Eastern Bank Ltd @ 9.00%
6,389,124
6,389,124
-
38,900,000
350,000,000
388,900,000
23,604,457
23,604,457
-
39,100,000
200,000,000
239,100,000
105

5.1
Money at Call and Short Notice includes Taka 40000,000, which was freezed by ICB Islami Bank (former Al-Baraka Bank)
since 23-01-2007. The Bangladesh Bank vide circular # BRPD(R-1)651/9(10)/2007-446 dated 02 August, 2007 has given
directives for repayment of such balances which are yet to be implemented by the Bank.
5(a)
CONSOLIDATED MONEY AT CALL AND SHORT NOTICE
31.12.2013
Taka

CBSIL
6
6.1
INVESTMENTS
Treasury Bond/ Bill
28-day Treasury Bill
1- year Treasury Bill
2-year Treasury Bond
Reverse Repo with Bangladesh Bank
Prize Bond
6.2
4,735,655,028
2,796,488,915
210,385,463
54,234,768
156,213,278
228,890,213
928,833,168
535,887,837
71,600,897
25,050,323
1,750,000,000
3,961,095,946
1,581,000
3,962,676,946
22,478,095
50,916,695
31,531,798
1,106,303,008
431,783,997
53,852,959
15,093,908
1,711,960,460
1,169,400
1,713,129,860
375,478,172
190,000,000
7,500,000
199,999,910
772,978,082
4,735,655,028
335,859,145
100,000,000
7,500,000
440,000,000
199,999,910
1,083,359,055
2,796,488,915
377,059,172
264,620,231
156,213,278
3,937,762,347
4,358,595,856
4,735,655,028
23,647,495
82,448,493
2,690,392,927
2,796,488,915
2,796,488,915
Cost and Market Value of Investment in Share as on 31 December 2013 as follows

Particulars
EXIM Bank Limited
Premier Bank Limited
Mercantile Bank Limited
City Bank Limited
IFIC Bank Limited
NCC Bank Limited
Shahjalal Islami Bank Limited
South East Bank Limited
National Bank Limited
Standard Bank Limited
United Commercial Bank Limited
Social Islami Bank Limited
International Leasing & Financial Services Ltd.
Midas Finance Limited
GSP Finance
BD Building
Eastern cables
BD Thai
Navana CNG
106
239,100,000
239,100,000
Maturity Grouping of Investments

Repayable on demand
With a residual maturity of:
Upto 1 month
More than 1 month but less than 3 months
More than 3 months but less than 1 year
More than 2 years
6.2.2
388,900,000
388,900,000
Other Investments
Shares in quoted companies (at cost)
Fixed Rate Subordinate Bond
Investment in Sonali Polaris FTL
Loan to CBSIL
Investment in Subsidiary
6.2.1
31.12.2012
Taka
No. of Shares
62,538
544,986
299,868
631,510
197,875
257,683
413,700
429,450
89,046
479,466
103,500
94,325
53,600
93,000
208,150
25,100
100
117,626
100
Rate
31.49
38.35
35.68
48.63
58.95
29.24
29.01
32.66
39.41
24.01
55.81
20.95
62.32
157.35
37.35
68.50
22.72
41.69
68.03
Total Cost
1,969,323.88
20,900,439.00
10,699,634.07
30,710,057.87
11,664,610.04
7,535,901.60
12,000,366.36
14,023,948.82
3,509,460.00
11,514,250.76
5,776,503.00
1,976,504.43
3,340,530.00
14,633,979.33
7,774,413.68
1,719,246.85
2,272.10
4,904,376.38
6,802.64
(Amount in Taka)
Total Market
Value of Shares
806,740.20
5,940,347.40
5,007,795.60
12,756,502.00
6,787,112.50
3,375,647.30
6,950,160.00
7,687,155.00
1,050,742.80
7,096,096.80
2,597,850.00
1,254,522.50
846,880.00
3,608,400.00
6,556,725.00
1,696,760.00
8,380.00
3,575,830.40
6,400.00
Gain /
(Loss)
(1,162,584)
(14,960,092)
(5,691,838)
(17,953,556)
(4,877,498)
(4,160,254)
(5,050,206)
(6,336,794)
(2,458,717)
(4,418,154)
(3,178,653)
(721,982)
(2,493,650)
(11,025,579)
(1,217,689)
(22,487)
6,108
(1,328,546)
(403)

Cost and Market Value of Investment in Share as on 31 December 2013 as follows
Particulars
No. of Shares
Rate
Total Cost
(Amount in Taka)
Market Value
of Shares
BSRM Steel
Titas Gas
DESCO
GBB Power
24,000
68,000
109,436
103,040
89.96
85.64
117.02
40.46
2,159,009.40
5,823,273.30
12,805,863.42
4,168,695.15
1,648,800.00
5,018,400.00
6,391,062.40
3,080,896.00
(510,209)
(804,873)
(6,414,801)
(1,087,799)
SPPCL
BEDL
Meghna Petroliam
MI Cement
Makson Spin
Tallu Spin
80,000
52,500
13,200
58,800
200,812
10,500
72.93
37.03
238.13
110.57
58.43
38.17
5,834,250.82
1,943,859.96
3,143,344.14
6,501,464.04
11,732,909.90
400,803.67
4,928,000.00
1,774,500.00
2,785,200.00
4,598,160.00
3,996,158.80
400,050.00
(906,251)
(169,360)
(358,144)
(1,903,304)
(7,736,751)
(754)
Bengal WTL
Beacon Pharma
Bx Pharma
Monno Ceramics
GP
BSCCL
United Insurance
City General Insurance
50,000
142,000
17,365
4,100
30,000
70,050
15,600
107,008
65.53
27.30
59.83
29.01
205.84
188.64
53.74
64.19
3,276,459.84
3,876,252.36
1,038,954.36
118,924.60
6,175,174.27
13,214,065.38
838,313.28
6,868,418.52
3,145,000.00
1,874,400.00
819,628.00
136,940.00
6,027,000.00
11,775,405.00
670,800.00
2,942,720.00
(131,460)
(2,001,852)
(219,326)
18,015
(148,174)
(1,438,660)
(167,513)
(3,925,699)
2,135,662.97
1,784,510.00
(351,153)
1,446,184.42
4,654,440.20
496,832.81
1,566,126.00
79,637,500.11
22,996,704.00
7,822,763.97
139,300
375,478,172
1,104,000.00
3,300,000.00
391,413.60
1,232,000.00
38,457,622.80
15,600,000.00
1,708,918.40
(342,184)
(1,354,440)
(105,419)
(334,126)
(41,179,877)
(7,396,704)
(6,113,846)
203,201,633
(172,137,239)
Janata Insurance
Fareast Life Insurance
PHP Mutual Fund
Trust Bank 1st Mutual Fund
Grameens2
United Air
Uniquehrl
Beximco
BXP-PREF
Total
68,900
11,500
600,000
54,363
70,000
2,344,977
200,000
53,072
1,393
8,662,239
31.00
125.76
7.76
9.14
22.37
33.96
114.98
147.40
100.00
-
31.12.2013
Taka
6(a)
Consolidated Investment
CBSIL
Other Investments
CBSIL
Less: Inter Company Transaction
LOANS AND ADVANCES
7.1
As per classification into the following broad categories

Inside Bangladesh
Overdrafts
General loans
Cash Credit
Transport Loan
Loan against Trust Receipt
Payment against Documents
Consumer Credit
Staff Loan
Other Loans
Outside Bangladesh
7.2
Gain /
(Loss)
Bills Purchased and Discounted

Payable in Bangladesh
Inland Bills Purchased
Payable outside Bangladesh
Foreign Bills Purchased
31.12.2012
Taka
4,545,478,974
2,603,387,934
(Note: 6.1)
3,962,676,946
3,962,676,946
1,713,129,860
1,713,129,860
(Note: 6.2)
772,978,082
9,823,856
782,801,938
(199,999,910)
582,802,028
1,083,359,055
6,898,92
1,090,257,984
(199,999,910)
890,258,074
12,503,679,147
11,676,531,295
1,348,204,994
2,041,261,151
3,843,785,026
44,082,987
2,027,558,226
271,819,885
5,104,302
271,708,125
2,645,304,451
12,498,829,147
12,498,829,147
1,659,435,674
2,450,688,757
3,390,195,504
77,250,412
1,635,621,235
401,782,014
5,852,057
186,627,883
1,863,773,537
11,671,227,073
11,671,227,073
1,000,000
3,850,000
4,850,000
936,000
4,368,222
5,304,222
107
7.3
31.12.2013
Taka
As per the remaining maturity grouping of loans and advances in the following order
Re-payable on demand
Not more than 3 months
More than 3 Months but less than 1 year
More than 1 year but less than 5 years
More than 5 years
7.4
542,100,979
2,299,378,115
5,432,553,710
1,651,616,833
2,578,029,510
12,503,679,147
12,503,679,147
12,503,679,147
11,519,661,294
11,519,661,294
33,516,478
12,198,454,544
271,708,125
12,503,679,147
38,260,157
9,845,392,295
147,609,241
1,488,399,601
11,519,661,294
Loans and advances on the basis of significant concentration

a) Loans and advances to directors of the bank
b) Loans and advances to senior executives
c) Loans and advances to customer group
d) Staff Loan
e) Others
Loans and advances allowed to each customer exceeding 10% of Bank's total capital fund
Number of the Clients
Detail of information on advances more than 10% of Bank's total Capital
20
Amount of Outstanding Loans & Advances

Amount of Recovery
Amount of Classified Loans & Advances
7.6
7,690,380,398
3,463,819,194
400,272,316
804,181,458
145,025,781
12,503,679,147
7,354,709,838
3,143,143,287
345,672,041
684,818,796
148,187,332
11,676,531,294
Industrial concentration of Loans & Advances (including Bill purchased and discounted)
Agriculture
Manufacturing Industries
Construction Company
Transportation
Commerce & Trade
Others
Total
7.8
Loans & Advances to Executives & all other staffs

Loans & Advances to Executives & all other staffs
7.8.1
Required Provision for Loans & Advances
105,502,000
3,081,000,000
376,020,499
44,082,987
5,871,343,252
3,025,730,409
12,503,679,147
144,800,000
2,839,800,000
345,100,000
154,200,000
4,666,100,000
3,526,531,294
11,676,531,294
271,708,125
271,708,125
186,627,883
186,627,883
2013
Particulars
Base for
Provision
Un-classified (including staff loan)

I) Standard
a) CCS
b) Staff Loan
c) HBL
d) LP
e) Small Enterprise Fin
f) Loans against Share
g) Agricultural Credit
e) Others
ii) SMA
Sub-Standard
Doubtful
Bad or Loss
11,145,309,899
10,918,984,784
15,768,304
271,708,125
373,217,707
161,571,257
1,457,400,966
464,692,201
89,873,563
8,084,752,661
226,325,115
455,757,000
17,267,163
1,072,564,600
Total
108
18
Classification of Loan as per geographical concentration

Segment
Dhaka Division
Chittagong Division
Rajshahi Division
Khulna Division
Sylhet Division
7.7
401,782,014
1,635,621,234
2,049,389,450
7,415,438,596
17,430,000
11,519,661,294
Countrywise Classification of Loans and Advances ( including Bill purchased and discounted)
Inside Bangladesh
Outside Bangladesh
7.5
31.12.2012
Taka
Rate
5%
0%
2%
2%
0.25%
2%
5%
1%
20%
50%
100%
2012
Provision
Base for
Provision
111,956,189
109,762,746
788,415
7,464,354
3,231,425
3,643,502
9,293,844
4,493,678
80,847,527
2,193,443
91,151,400
8,633,582
1,072,564,600
10,553,925,113
10,524,356,492
109,541,786
186,627,883
357,542,319
196,594,975
891,385,224
73,753,725
34,318,340
8,674,592,240
29,568,621
25,302,239
198,165,396
899,138,546
1,284,305,770
Rate
5%
0%
2%
2%
0.25%
2%
5%
1%
5%
20%
50%
100%
Provision
110,203,643
108,725,212
5,477,089
7,150,846
3,931,900
2,228,463
1,475,075
1,715,917
86,745,922
1,478,431
5,060,448
99,082,698
899,138,546
1,113,485,335

31.12.2013
Taka
7.8.2
Provision maintained
7.9
Classification of Loan & Advances

Un-classified (including staff loan)
i) Standard
ii) SMA
Sub-Standard
Doubtful
Bad or Loss*
Total
31.12.2012
Taka
580,316,506
545,139,328
11,145,450,308
10,918,984,784
226,465,524
483,837,822
33,131,679
1,401,291,031
13,063,710,840
10,696,947,883
10,666,152,390
30,795,493
62,596,812
249,685,254
667,301,345
11,676,531,294
(1) Debts considered good in respect of which the Bank Company is fully secured;
9,648,400,000
8,211,600,000
(2) Debts considered good in against which the Banking Company holds no
security otherthan the debtor's personal guarantee;
3,415,310,840
3,464,931,294
(3) Debts considered good & secured by the personal undertaking of one or
more parties in addition to the personal guarantee of the debtors;"
* Bad or loss loan including BCI & BCBL for the year 2013
7.10
Particulars of Loans and Advances
(4) Loans adversely classified; provision not maintained there against;

(5) Debts due by directors or officers of the banking company of any
of these separately or jointly with any other person;
11,676,531,294
271,708,125
186,627,883
(7) Maximum total amount of advances including temporary advance 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;
(8) Maximum total amount of advances including temporary advance granted

during the year to the companies or firm in which the directors of the banking
or company have interest as directors, companies as members;
(9) Due from banking companies.
a) Decrease/increase in provision;
b) Amount of loan written off;
c) Amount realized against loan previously written off;
d) Amount of provision kept against loan classified as
'bad/loss' on the date of preparing the balance sheet;
e) Interest creditable to the interest Suspense Accounts;
(11) Cumulative amount of the written off loan:
(12) Amount written off the current year;
(13) The amount of written of loan for which lawsuit has been filed;
7.11
Bills Purchased and Discounted
7.12
As per classification into the following broad categories

Payable in Bangladesh
Payable outside Bangladesh
7.14
13,063,710,840
(6) Loan due from companies or firms which the directors of the banking
company directors, partners or managing agents or in the case have
interest as of private companies as members;
(10) Amount of classified loan on which interest has been

charged, should be mentioned as follows;
7.13
As per the remaining maturity grouping in the following order

Payable within 1 month
Over 1 month but less than 3 months
Over 3 months but less than 6 months
6 months or more
35,177,178
-
(18,273,291)
-
459,467,366
10,962,281
438,236,423
-
104,710,940
100,941,882
3,769,058
73,888,573
121,503,823
93,574,236
4,850,000
5,304,222
1,000,000
3,850,000
4,850,000
936,000
4,368,222
5,304,222
4,850,000
4,850,000
5,304,222
5,304,222
Loans and Advances of BCI

As per BRPD Circular 16 dated 06 December 1998 Loans & Advances (BCI) has been classified as below:
Unclassified
342,761
I) Standard
342,761
ii) SMA
Substandard
Doubtful
Bad/loss
560,031,693
573,381,586
Total
560,031,693
573,724,347
109
7(a)
CONSOLIDATED LOANS AND ADVANCES

Add: Bill Purchased & Discount
8(a)
Fixed assets including premises, furniture & fixtures

Motor Vehicles
Furniture & Fixture
Machinery & Equipment
Computer & Accessories
Interior Decoration
Hardware & Software Automation
Total
Details are shown in annexed - A
Consolidated fixed assets including premises, furniture and fixtures
CBSIL
Other Assets
Advance Income Tax
Stock of Stationery, Stamps & Security Stationary
Advance Rent, Advertisement, etc.
Accrued Interest & Commission Receivable
Security Deposits
Suspense Accounts
Sundry Assets
Deferred Tax Assets
9.1
9.2
9.3
9.4
9.4.1
9.5
9.6
110
Advance Income Tax

Opening Balance
Addition during the year
Closing Balance
Stock of Stationery, Stamps & Security Stationery
Stock of Stationery
Stock of Stamp
MICR Printing Stationery
Stock of Security Stationery
Advance Rent, Advertisement, etc.
Advance Rent
Advance Advertisement
Accrued Interest & Commission Receivable
Interest Receivable
Commission Receivables
Commission Receivables
Rent of Property
Dividend
Security Deposits
Security Deposits
Suspense Accounts
Sundry Debtors
Advance against TA/DA & Salary
Advance against Legal Expenses
Advance against Pratirakha Sanchay Patra
Advance against Business Development
Advance against Commerce Bank Securities & Investment Ltd.
Advance against Revenue Stamp
Advance against Ekti Bari Ekti Khamar (EBEK)
(Note: 8)
(Note: 9.2)
(Note: 9.3)
(Note: 9.4)
(Note: 9.5)
(Note: 9.6)
(Note: 9.7)
31.12.2013
Taka
31.12.2012
Taka
12,498,829,147
(440,000,000)
12,058,829,147
4,850,000
12,063,679,147
11,671,227,073
11,671,227,073
5,304,222
11,676,531,295
7,011,294
22,825,701
43,069,009
12,013,477
71,156,368
26,896,925
182,972,772
10,400,482
15,131,193
42,228,478
15,484,350
48,599,735
33,179,577
165,023,815
182,972,772
9,423,565
192,396,337
165,023,815
10,375,020
175,398,835
500,989,113
11,242,376
50,354,863
165,953,076
1,165,498
8,993,394
69,898,336
5,618,823
814,215,479
395,752,878
11,095,283
55,303,295
40,584,852
1,035,802
36,742,385
71,703,569
1,346,071
613,564,135
395,752,878
105,236,235
500,989,113
140,611,855
255,141,023
395,752,878
3,929,710
399,470
4,782,554
2,130,642
11,242,376
3,670,937
231,510
5,022,299
2,170,537
11,095,283
50,354,863
50,354,863
55,303,295
55,303,295
165,953,076
165,953,076
37,334,052
3,250,800
40,584,852
3,250,800
3,250,800
1,165,498
1,035,802
8,089,577
5,000
38,950
470,661
55,000
2,510.00
331,696.00
8,993,394
29,584,698
13,700
10,100
6,989,287
97,000
47,600
36,742,385

31.12.2013
Taka
9.7
Sundry Assets
Clearing Adjustment
D.D. Paid without Advice
Prepaid insurance premium
Advance income tax
Cash Remittance
BCB Credit Card
Western Union Money Transfer+Money Gram
ATM cash settlement
Advance against Generator
Excise Duty Adjustment (FDR)
Sub-total (a)
Blocked Assets:
Sundry Deposits with National Bank Ltd.
Deposit with National Bank Ltd.
Advance against Building
Other unidentified Assets
Sub-total (b
Grand-total (a+b)
9.8
Blocked Assets shown above relates to BCI period, against which court case is pending.
9.9
Deferred Tax Assets

Opening Balance
Add : Addition during the year
Less: Adjustment during the year
Closing Balance
9(a)
(Note: 9)
10
Non Banking Assets
11
Borrowings from Bangladesh Bank, other Banks, Financial Institutions and Agents
From Inside Bangladesh - ALS with Bangladesh Bank
From Inside Bangladesh - Re-finance Scheme under SME
From Outside Bangladesh
11.2
12
1,263
48,250
22,072
148,147
320,000
85,000
3,141,702
271,600
42,000
379,596
4,459,629
3,500,000
52,200,000
9,738,707
65,438,707
69,898,336
6,263
1,478,630
93,179
32,420
1,000,000
141,670
3,181,322
5,933,484
3,500,000
53,300,000
8,970,085
65,770,085
71,703,569
1,346,071
4,272,752
5,618,823
1,346,071
1,346,071
814,215,479
681,524,256
1,495,739,735
613,564,135
625,631,622.9
1,239,195,758
50,805,000
50,805,000
95,760,000
59,700,000
155,460,000
50,805,000
50,805,000
155,460,000
155,460,000
50,805,000
50,805,000
155,460,000
155,460,000
19,186,097,661
853,315,278
1,396,691,167
1,517,226,728
12,659,431,640
1,917,935,552
214,564,919
626,932,377
15,300,528,796
761,974,778
1,242,980,289
935,589,244
9,877,954,807
1,518,369,188
285,622,271
678,038,219
550,000,000
19,736,097,661
310,000,000
15,610,528,796
Consolidated Other Assets

CBSIL
11(a)
31.12.2012
Taka
Consolidated Borrowings from Bangladesh Bank, other Banks, Financial

Institutions and Agents
CBSIL
Maturity-wise borrowings
Repayable on demand
Not more than 3 months
Over 3 Months but less than 1 year
Over 1 year but not less 5 years
Over 5 years
Deposits and other Accounts
Deposits (General)
Current Deposits
Short Term Deposits
Fixed Deposits
Deposits under different schemes
Bills Payable
Other Deposits
Deposits from Bank
(Note: 12.1)
(Note: 12.3)
(Note: 12.4)
111
12(a)
12.1
Consolidated Deposits and other Accounts

CBSIL
15,610,528,796
464,122
15,610,992,918
9,201,653
5,900,000
20,380,877
43,166,092
167,871,466
610,380,014
1,971,335
17,090,157
81,345,534
26,402,727
75,880,892
522,291,245
336,053,560
1,917,935,552
355,066,497
31,359,237
63,170,474
36,285,036
144,301,133
290,800,275
821,021
14,523,053
90,369,892
19,763,101
63,175,227
408,734,243
1,518,369,188
626,932,377
2,977,467,035
7,072,599,550
2,998,796,322
2,998,796,322
3,061,506,055
19,736,097,661
1,993,794,405
1,246,729,246
5,199,106,744
3,996,289,350
1,384,464,753
1,790,144,299
15,610,528,796
211,861,544
2,703,375
214,564,919
283,016,549
2,605,722
285,622,271
44,229,795
17,178,895
2,358,183
406,471
2,923
688,076
94,094
827,066
61,380
1,615,712
584,530
6,929,073
147,156
22,691
35,610
234,961
64,697,315
305,492
19,000
1,554,781
74,571
29,714,328
351,759,223
103,391,053
626,932,377
128,675,208
13,917,137
20,341,908
2,404,102
1,687
1,828,846
119,726
25,129
894,779
11,390
1,795,276
903,353
18,171
540,700
7,590
19,901
203,921
123,550,200
65,714
551,429
1,958,306
30,496,007
225,999,739
123,707,998
678,038,219
626,932,377
65,720
626,998,097
678,038,219
464,122
678,502,341
Bills Payable
Pay Order Payable
D.D. Payable
12.4
19,736,097,661
65,720
19,736,163,381
Maturity-wise Classification
Payable:
On Demand
Within 1 Month
More than 1 Month but Less than 6 months
More than 6 Months but Less than 1 Year
More than 1 year but within 5 Years
More than 5 years but within 10 Years
Over 10 Years and Unclaimed
12.3
31.12.2012
Taka
Deposits under different schemes

Pension Saving Prokalpa (PSP)
Monthly Pension Scheme
Life Pension Deposit Scheme
Marriage Deposit Scheme
Millionaire Deposit Scheme
Monthly Savings Schemes
Students' Savings Schemes
Education Deposit Scheme
Lakhopoti Deposit Scheme
Triple Deposit Scheme
Kotipoti Deposit Scheme
Double Deposit Scheme
Investor Deposit Scheme
12.2
31.12.2013
Taka
Other Deposits
Margin on Letter of Credit
Margin on Letter of Guaranty
Export Fund Development
Clearing Adjustment
Excess Cash Received
Tax at Source (Interest)
Tax at Source (Salary)
Tax at Source (Office Rent)
Risk Fund
Service charge / CIB Service Charge
Margin on S/G
Excise Duty
Tax at Source (Buying House)/Letter of Credit
VAT
Revenue Stamp/ Stamp
Legal fee
Cash Incentive
Export Bill
Margin on FBP / Acceptance on B/B LC / Margin on LTR
MICR cheque
BEFTN & BACPS
Foreign Currency Revaluation
Security Deposit
Interest Payable on Deposits
Foreign Currency Deposit
12.4(a) Consolidated Other Deposits

CBSIL
112
(Note: 12.04)

31.12.2013
Taka
13
13.1
13.1.1
Other Liabilities
Provision for Loans and Advances
Interest Suspense Accounts
Sundry Liabilities (BCI)
Provision for Current Income Tax
Provision for Deferred Tax
Provision for Gratuity
Provision for Share & Debenture Unrealized Gain / Loss
Provision for IT Assets
Accrued Expense Payable
Provision for Incentive Bonus
BCBL General Accounts
(Note: 13.01)
(Note: 13.02)
(Note: 13.03)
(Note: 13.04)
(Note: 13.05)
(Note: 13.06)
(Note: 13.07)
(Note: 13.08)
(Note: 13.09)
(Note: 13.10)
(Note: 13.11)
Provision for Loans and Advances

Provision for Classified Loans and Advances
Provision for Unclassified Loans and Advances
(Note: 13.01.1)
(Note: 13.01.2)
Provision for Classified Loans and Advances

Opening Balance
Less: Fully Provided Bad Loan Written off
Add : Received from Previous Written off Bad Loan
Add : Special Provision Kept for the year
Less: Provision no more Required due to Recovery of Bad Loan
Less: Interest Waiver During the Year
Add : Net Charge in the Profit and Loss Account
13.1.1(a) Consolidated Provision for Classified Loans and Advances

CBSIL
13.1.2
13.2
13.3
13.3.1
(Note: 13.01.1)
Provision for Unclassified Loans and Advances (1%)

Opening Balance
Add : Transferred during the year
Interest Suspense A/C
Opening Balance
Less: Interest Realized during the year
Less: Written off during the year
Provision for Current Income Tax
Opening Balance
31.12.2012
Taka
580,316,506
224,058,513
1,206,422
343,355,794
142,569,096
416,094
3,227,017
25,666,003
20,852,047
47,339,900
1,389,007,392
545,139,328
195,993,881
354,561
397,627,068
10,767,347
63,000,000
109,082,559
4,140,544
30,000,000
20,281,917
18,184,592
1,394,571,796
459,467,366
120,849,140
580,316,506
438,236,423
106,902,904
545,139,328
438,236,423
(3,769,058)
25,000,000
459,467,366
460,035,142
(75,798,719)
25,000,000
15,191,934
40,191,934
54,000,000
3,893,130
57,893,130
106,902,904
13,946,236
120,849,140
103,377,477
3,525,427
106,902,904
195,993,881
10,962,281
(13,333,294)
(3,769,058)
224,058,513
202,740,483
6,746,602
195,993,881
397,627,068
67,953,707
122,224,981
343,355,794
274,172,962
123,454,106
397,627,068
54,000,000
438,236,423
Income Tax Assessment for the year 2005-2006, 2006-2007, 2007-2008, 2009-2010 and 2011-2012 are pending before appeal. Income tax
return has been filed under section 82BB (3)/83(2) for the year 2013-2014. Income tax has been provided @ 42.5% on the net profit earned
by the Bank for the year 2012. As per assessment order at DCT level there exist shortfall in the provision for income tax against Appeals are
pending at different levels of income tax Authorities. The details of income tax Assessment are as follows.
Accounting
Year
Assessment
Year
31-12-2004
31-12-2005
31-12-2006
31-12-2007
31-12-2008
31-12-2009
31-12-2010
31.12-2011
31-12-2012
31-12-2013
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
Provision as
per Accounts
110,635,242
100,000,000
155,000,000
65,000,000
67,953,707
Tax Payable as per

Assessment Order
26,010,067.00
33,452,050.00
51,371,498.00
20,662,000.00
110,635,242
32,401,165.00
-
Shortfall/
(Cumulative)
(26,010,067)
(59,462,117)
(110,833,615)
(110,833,615)
(131,495,615)
(131,495,615)
(63,896,780)
(63,896,780)
(63,896,780)
(63,896,780)
Status
Appeal is pending at
the tribunal and
honorable high court.
Setteled
Appeal has been filed
Settled
Appeal is pending at
Under Assesment in
LTU
113

31.12.2013
Taka
13.4
Provision for Deferred Tax Liability

Opening Balance
13.5
10,767,347
(10,767,347)
-
10,767,347
10,767,347
63,000,000
10,000,000
(73,000,000)
-
33,000,000
30,000,000
Provision for Gratuity

Opening Balance
Less: Transfer to Gratuity Fund
13.6
31.12.2012
Taka
63,000,000
Provision for Share & Debenture (unrealized Gain / Loss)*

Opening Balance
109,082,559
33,486,537
142,569,096
100,320,327
8,762,232
109,082,559
*Bangladesh Bank Vide their letter no DOS (SR) 1153/161/2012-430 dt. 31/12/2012 & letter no DOS (SR) 1153/161/2014-002 dt. 02/01/2014
approved BCBL to kept Share Provision @ 20% on their Share portfilio loss equal to five quarter for the year 2013 & 2014
13.7
Provision for IT Assets

Opening Balance
416,094
416,094
13.8
Accred Expenses Payable

Service Charge
Telephone Bill/Telex
Courier bill
Nursury bill
Accrued Rent
Others
Wasa Bill
Audit Fee/Rating fee
13.9
20,000,000
27,195,405
17,195,405
30,000,000
20,281,917
570,130
20,852,047
25,353,771
5,071,854
20,281,917
678,319,275
12,592,399,169
(687,991,266)
(12,535,387,279)
47,339,900
690,221,010
1,785,514,833
(704,114,107)
(1,753,437,145)
18,184,592
1,389,007,392
607,252,588
1,996,259,980
440,000,000
1,556,259,980
1,394,571,796
532,132,999
1,926,704,795
1,926,704,795
10,000,000,000
10,000,000,000
Consolidated Other Liabilities

CBSIL
14
Capital
14.1
Authorized Capital
100000000 Ordinary share of Tk. 100 each
114
30,000,000
20,000,000
24,333,997
25,666,003
BCBL General Account

IBTA (BCI) Cr.
BCBL General Account Cr.
IBTA (BCI) Dr.
BCBL General Account Dr.
13(a)
27,000
1,206,000
2,895,544
12,000
4,140,544

Opening Balance
13.11
157,800
95,000
22,034
17,500
2,618,433
316,250
3,227,017
Provision Incentive Bonus

Opening Balance
13.10
(Note: 13)
14.2
Issued, Subscribed and Paid up Capital

19,887,428 Ordinary share of Tk. 100 each
Break up of Issued, Subscribed & Paid up Capital as follows
Particulars
No. of Shares as
on 31 Dec, 2013
Directors
KA Category -
Government
31.12.2012
Taka
1,988,742,800
1,988,742,800
31.12.2013
31.12.2012
Amount in Taka Amount in Taka
0.00%
800
800
6,750,000
33.94%
675,000,000
675,000,000
KHA Category - Three State Owned Bank
2,249,982
11.31%
224,998,200
225,028,200
GA Category - Autonomous/Govt owned corporate bodies
1,024,613
5.15%
102,461,300
102,461,300
Depositors and other private shareholders
9,862,825
49.59%
986,282,500
986,252,500
19,887,428
100.00%
1,988,742,800
1,988,742,800
Total
14.3
% of Total
31.12.2013
Taka
Capital Adequacy Ratio

In terms of section 13 (2) of the Bank Companies Act, 1991 and Bangladesh Bank BRPD circulars no. 35 dated 29
December 2010, required capital, available core capital and supplementary capital of the Bank for the year ended as at 31
December 2013 is shown below:
Tier I (Core Capital)
3,252,590,860
2,310,747,786
Paid up capital
Share capital of BCI
Non-Repayable share premium account
Statutory Reserve
General Reserve
Retained Earnings
Minority interest in subsidiaries
Non cumulative Irredeemable preference share
Deductions from Tier-I (Core Capital ) :
Book value of Goodwill
Shortfall in provisions required against classified assets
Shortfall in provisions required against investment in shares
Remaining deficit on account of revaluation of investments in securities after
netting off from any other surplus on the securities.
Reciprocal crossholdings of bank capital/subordinated debt
Any investment exceeding the approved limit under section 26(2) of
Bank Company Act, 1991.
Investments in subsidiaries which are not consolidated
Other if any
1,988,742,800
913,578,800
39,000,000
194,845,145
8,920,366
107,503,749
712,882,216
712,882,216
-
1,988,742,800
39,000,000
178,609,568
8,920,366
95,475,051
566,260,673
566,260,673
-
Total Eligible Tier-I Capital
2,539,708,644
1,744,487,113
Tier II (Supplementary Capital)
151,985,437
135,981,550
General Provision on Unclassified Loans

Assets Revaluation Reserve
All Others Preference Share
General Provision (Off balance sheet items)
Exchange Equalization Fund
120,849,140
10,284,249
20,852,047
-
106,902,904
8,796,729
20,281,917
-
2,691,694,080
1,880,468,663
18,843,700,000
4,000,000,000
18,023,600,000
4,000,000,000
2,539,708,644
151,985,437
2,691,694,080
1,744,487,113
135,981,550
1,880,468,663
14.28%
13.48%
0.81%
10.43%
9.68%
0.75%
Total Eligible Capital (Tier-I + Tier-II)

Total Risk Weighted Assets (As per BASEL-II guideline)
Required Capital
Details are shown in Annexure - D
Actual Capital Held:
Core Capital
Supplementary Capital
Capital Adequacy Ratio (Required 10%)

Core Capital to RWA
Supplementary Capital to RWA
115

31.12.2013
Taka
15
Statutory Reserve
Opening Balance
Less : Transferred during the year to provision for loans & advances
15(a)
178,609,568
16,235,577
194,845,145
143,213,693
35,395,875
178,609,568
194,845,145
194,845,145
178,609,568
178,609,568
8,920,366
8,920,366
3,848,512
5,071,854
8,920,366
8,920,366
8,920,366
8,920,366
8,920,366
17,593,459
2,975,040
20,568,499
13,035,973
4,557,486
17,593,459
20,568,499
20,568,499
17,593,459
17,593,459
95,475,051
10,767,347
1,261,351
107,503,749
29,658,897
65,816,154
95,475,051
107,503,749
5,968,578
113,472,327
95,475,051
3,465,059
98,940,110
792,496,105
357,479,616
691,220,053
84,373,621
2,085,204,684
802,196,848
387,162,419
714,819,019
84,373,621
2,099,383,936
357,479,616
357,479,616
387,162,419
387,162,419
Consolidated Statutory Reserve

CBSIL
16
31.12.2012
Taka
Other Reserve*
Opening Balance
*Other Reserve has maintained for future Stock Dividend for the Shareholders.
16(a)
Consolidated Other Reserve

CBSIL
17

Opening Balance
17(a)
Consolidated Revaluation Reserve for HTM Securities

CBSIL
18
Profit and Loss Accounts / Retained Earnings

Opening Balance
Prior year's Adjustment
Profit/Loss for the year as per Profit and Loss accounts
18(a)
Consolidated Profit and Loss Accounts / Retained Earnings

CBSIL
19
Contingent Liabilities and Other Commitments

19.1
(Note: 18)
(Note: 19.01)
(Note: 19.02)
Money for which the Bank is contingently liable in respect of guarantee issued favoring
Directors
Government
Bank and Other Financial Institution
Others
Commitments
Less than 1 Year
Equal to or more than 1 year
19.2
Other Contingent Liabilities

Companies Liabilities for L/G
Companies Liabilities for L/C
Tax liability of BCI *
9,443,000
3,732,320
6,000
71,192,301
84,373,621
9,443,000
3,732,320
6,000
71,192,301
84,373,621
*The tax liability of BCI period relates to assessment year 1989-90, 1990-91, 1991-92, 1992-93, 1993-94, which are pending
at the Supreme Court . This has been carried forward since long which is shown under contingent liability.
116
20
(Note: 20)
(Note: 21)
(Note: 22)
(Note: 23)
(Note: 24.1)
246,766,588
7,417,788
1,672,633
12,083,770
6,438,023
274,378,803
252,485,777
7,691,389
55,937,500
3,327,843
319,442,510
274,378,803
437,515
274,816,318
319,442,510
8,391,441
327,833,951
50,212,090
45,401,868
95,613,958
45,799,760
49,967,581
95,767,341
95,613,958
36,159,061
131,773,019
95,767,341
40,608,646
136,375,987
85,384,908
85,384,908
64,403,335
64,403,335
74,338,956
1,234,708
4,304,203
5,507,041
85,384,908
50,825,040
2,639,690
4,513,313
6,425,292
64,403,335
85,384,908
21,125,162
106,510,070
64,403,335
11,760,359
76,163,694
Other Receipts
Accounts Maintenance Charge
Appraisal Fee
Postage
Telex, Telephone & Telegram
24(a)
1,290,333,871
55,937,500
1,346,271,371
1,346,271,371

Rent on Locker
Other Receipts
24.1
1,743,832,265
55,763,889
1,799,596,154
55,763,889
1,743,832,265
Consolidated Exchange, Commission and Brokerage

CBSIL
24
1,282,523,883
7,224,342
585,646
1,290,333,871
Exchange, Commission and Brokerage

Commission
Exchange Earnings
Brokerage
23(a)
1,710,786,232
32,144,919
901,114
1,743,832,265
Consolidated Income from Investment

CBSIL
23
1,696,977,403
63,924,340
1,760,901,743
1,760,901,743
Income from Investment

Treasury Bill
Capital Gain
Interest from CBSIL
Dividend on Share
Fixed Rate Subordinate Bond
Revaluation of Govt. Securities
22(a)
2,078,172,461
69,185,673
2,147,358,134
55,763,889
2,091,594,245
Consolidated interest Paid on Deposits

CBSIL
22
1,562,157,517
134,819,886
1,696,977,403
Interest Paid on Deposits

Interest Paid on Deposits
Interest Paid on Borrowing
Interest Paid on Foreign Bank Accounts
Discount Paid
21(a)
1,690,987,399
387,185,062
2,078,172,461
Consolidated interest Income

CBSIL
21
31.12.2012
Taka
Interest Income
Interest received from Loans and Advances
Interest received from Banks & Other financial Institutions
20(a)
31.12.2013
Taka
Consolidated Other Operating Income

CBSIL
(Note: 24)
117

31.12.2013
Taka
25

Basic Salary
Allowance including Gratuity
Provident Fund
Bonus
25(a)
(Note: 25)
(Note: 26)
(Note: 27)
4,211,534
9,224,082
13,435,616
3,377,782
2,175,664
1,712
5,555,157
13,435,616
529,285
13,964,901
5,555,157
418,713
5,973,870
5,988,776
3,917,804
600,158
4,158,210
14,664,947
2,756,661
3,208,783
1,409,192
2,795,516
10,170,152
(Note: 28)
14,664,947
705,491.00
15,370,438
10,170,152
826,031
10,996,183
890,322
148,387
148,387
180,000
296,774
1,663,870
3,686,129
1,535,887
921,532
1,000,000
1,509,742
8,653,290
54,448,972
5,958,215
60,407,188
40,128,380
4,149,445
44,277,825
Depreciation and Repair of Fixed Assets

Depreciation of Fixed Assets
Repairs and Maintenance
118
77,073,470
7,026,778
84,100,248

Basic
House Rent
House Maintenance / Furnishing
Special Allowances
Bonus
Leave Fare Assistance
30
95,620,105
6,937,948
102,558,053
Consolidated Stationery, Printing & Advertisement

CBSIL
29
52,060,209
1,271,486
8,969,212
3,332,582
11,439,980
77,073,470
Stationery, Printing & Advertisement

Printing Stationery
Other Stationery
Security Stationery
Publicity and Advertisement
28(a)
65,715,595
2,281,338
11,906,250
2,434,205
13,282,716
95,620,105
Consolidated Postage, Telegram, Telephone

CBSIL
28
313,834,824
16,479,566
330,314,390
Postage, Telegram, Telephone

Telephone
Postage, Telegram & connectivity
Cartage
27(a)
372,532,349
17,396,874
389,929,223
Consolidated Rent, Taxes, Insurance, Electricity, etc.

CBSIL
27
152,110,634
127,079,851
9,520,998
25,123,342
313,834,824

Rent
Rates and Taxes
Insurance
Car Insurance, Tax
Electricity/GAS
26(a)
164,067,506
150,528,701
12,367,578
45,568,564
372,532,349
Consolidated Salary and Allowances

CBSIL
26
31.12.2012
Taka

31.12.2013
Taka
30(a)
Consolidated Depreciation and Repair of Fixed Assets

CBSIL
31
(Note: 30)
(Note: 31)
1,692,184
4,878
615,000
1,348,517
2,188,224
2,305,241
3,845,002
2,200,000
3,283,601
333,250
24,950,748
608,178
3,313,667
96,685
8,276,293
45,647,664
4,010,098
385,520
34,155
94,039
2,184,270
5,667,013
493,397
642,043
2,204,699
156,141
2,334,296
1,893,048
2,500,416
410,691
123,718,957
100,411,012
14,555,896
114,966,908
123,718,957
16,647,083
140,366,040
345,542,153
1,266,813,196
3,706,340,628
388,900,000
3,962,676,946
9,670,272,922
307,280,448
1,356,151,063
1,816,942,940
239,100,000
1,713,129,860
5,432,604,310
17,496,928
19,887,428
0.88
101,212,029
19,887,428
5.09
20,000,446
19,887,428
1.01
112,598,558
19,887,428
5.66
Earnings Per Share (EPS)

Number of Ordinary Share
Earnings Per Share
33(a)
2,358,451
3,155
3,815,380
1,000
1,576,155
2,510,996
172,500
4,720,869
6,040,369
4,464,965
432,350
14,823,793
78,138
4,407,315
40,500
152,615
1,952,570
3,436,194
338,302
739,259
350
43,435
2,509,487
5,940,271
563,914
26,094,501
77,962.00
6,490,795
482,220
2,347,999
1,079,280
2,272,221
443,700
100,411,012
Closing Cash and Cash Equivalent

Balance with Bangladesh Bank & Sonali Bank (Including foreign currencies)
Balance with Other Bank & Financial Institutions
Money at Call and short notice
Investment Government
33
44,277,825
2,662,179
46,940,004
Consolidated Other Expenditure

CBSIL
32
60,407,188
2,541,664
62,948,852
Other Expenditure
Business Development
BB Clearing Charges
Service charge
Commission paid to SEC / IPO issue charges
Computer Accessories
Conveyance
Credit Rating Fee
Maintenance Charge (ATM)
CSR / Donation / Subscription / Newspaper
Provision for CL
Entertainment
Excise Duty
Exchange Loss
Foreign Bank Charge/Commission
Fuel
Honorarium
Laundry
Internet Bill
Loss on Revaluation on Investment
Loss on Purchase on Share
Managers' meeting /Conference
Manual preparation
Medical charge
Office Maintenance / Table Desk Stationeries
Miscellaneous
Photocopy/Fax/E-mail
Provision on Loss on Share
Recruitment Expenses
Service charges on Elite force
Service on VAT
SWIFT Charges
Training
Travelling & Daily Allowances
Uniform
31(a)
31.12.2012
Taka
Consolidated Earnings Per Share (EPS)

Number of Ordinary Share
Consolidated Earnings Per Share (EPS)
119
34
31.12.2013
Taka
31.12.2012
Taka
3,273,159,358
19,887,428
164.58
2,108,438,281
19,887,428
106.02
Net Asset Value Per Share (NAV)

a) Capital / Share holders' Equity for the year*
b) Number of Outstanding Share
Net Asset Value Per Share (NAV) ( ab)
*Capital / Share holders' equity for the year including Right Application Money Taka. 913,578,800.00
35
Net Operating Cash Flow Per Share

a) Net Cash flows from Operating Activities
b) Number of Outstanding Share
Net Operating Cash Flow Per Share (NAV)( ab)
36
3,342,038,769
19,887,428
168.05
513,359,337
19,887,428
25.81
Risk factors and risk management

Implementations of other Core Risk Management Guidelines are being followed. Credit Risk Grading is done for all
commercial exposure. Bank's Asset Liability Committee is entrusted with the responsibility of managing short-term & longterm liquidity. ALM Guidelines & ICT Guidelines have also been implemented in accordance with the Guidelines issued by
Bangladesh Bank & it has been approved by the Board of Directors. The Bank has established its KYC & operation control
procedure for the prevention of Money Laundering. The Bank has strengthened the Internal Control and Audit
Division(IC&AD) to ensure comprehensive audit thereof. As regards ICT Risk Management physical security of Hardware &
Software are under process & will be strengthened soon.
Dhaka,
30 March 2014
120
Managing Director
Director
Director
Chairman

-
Sub Total (A+B)
Computer Accessories
289,740,956
52,933,249
Interior Decoration
289,740,956
66,494,995
Hardware & Software Automation
Total (A+B+ C)
39,277,882
Motor Vehicles
Sub Total (C)
73,982,865
27,399,934
Mechanical Appliances
29,652,031
Sub total (B)
C. Furniture and Fixtures
B. Revaluation in Land & Building
73,017,781
73,017,781
9,034,605
37,861,449
155,627
15,536,572
10,429,529
905,917
905,917
886,500
19,417
Sub total (A)

-
Construction/Capital Work in Process
2.50%
Rate
of
Dep.
Charged
upto
01.01.2013
6,098,305
361,852,821
361,852,821
-
124,431,076
124,431,076
61,967,854 30.00% 37,448,899
103,469,944 20.00% 17,895,260
39,433,509 20.00%
27,399,934 20.00% 16,999,452
89,519,437 20.00% 31,468,322
40,062,143 10.00% 14,520,838
5 (2+3-4)
Sale/
Total
adjustment
as at
during 31.12.2013
the year
Addition
during
the year
Building
Balance
as at
01.01.2013
Cost
Land
A. Premises
Particulars
54,626,467
54,626,467
12,505,478
14,595,617
6,438,280
3,389,188
14,982,106
2,715,799
Charged
during
the year
(Amount in Taka)
Annexure-A
194
49,954,377
32,313,577
12,536,585
20,388,640
46,450,428
17,236,443
10 (7+8-9)
12,013,477
71,156,367
26,896,925
7,011,294
43,069,009
22,825,701
11 (5 - 10)
15,484,350
48,599,735
33,179,577
10,400,482
42,228,478
15,131,193
12
177,495 178,880,049 182,972,772 165,023,815
177,495 178,880,049 182,972,772 165,023,815
177,301
Written
Written
down
down
adjustment
Total
value
value
during
as at
as at
as on
the year 31.12.2013
31.12.2013 31.12.2012
Depreciation
Fixed Assets including premises, furniture & Fixtures Schedule

As on 31 December 2013
Annexure
121
Annexure
Annexure-B
Details of Large Loan

Outstanding (Taka in crore)
Sl #
Group / Client Name

Funded
Marine Vegetable Oils
Total
46.30
Dhaka Trading House
35.86
35.86
Abul Khair Group
24.05
24.05
Mr. Anwar Mia
12.53
12.53
M/s Akter Enterprise
17.20
17.20
M/S Lithun Fabrics
31.82
31.82
M/s Suruj Mia Spinning Mills Ltd
28.47
28.47
Toy Woods (BD) Co. Ltd.
21.32
S B Group
29.90
29.90
10
M/s Islam Brothers (Aman Group)
25.58
9.54
35.12
11
F.R. Jute Balars
27.04
27.04
12
Nurun-Nabi & Alied Concern
41.47
41.47
13
Sharmin Jute Balars
22.67
22.67
14
Hobigonj Agro Ltd.
15.39
15.39
15
Kazi Sharif Ahmed
9.98
9.98
Total
122
46.30
Non-Funded
389.58
21.32
9.54
399.12
Annexure
Annexure-C
HIGHLIGHTS OF THE OVERALL ACTIVITIES OF THE BANK

(Amount in Taka)
Sl #
Particulars
2013
2012
01
Paid up Capital
1,988,742,800
02
Right Application Money
03
Total Capital
2,691,694,080
1,880,468,663
04
Surplus/(Deficit) Capital
(1,308,305,920)
(2,119,531,337)
05
Total Assets
24,504,150,097
19,544,806,958
06
Total Deposits
19,736,097,661
15,610,528,796
07
13,063,710,840
12,250,255,642
08
Total Contingent Liabilities and Commitments
2,085,204,684
2,099,383,936
09
Advances Deposits Ratio %
66.19
78.47
10
Classified Loans to Advance Ratio ( %)
14.68
12.87
11
Profit After Tax and Provision
17,496,928
101,212,029
12
Classified Advance
1,918,260,532
1,552,964,997
13
Provision kept against Classified Advance
459,467,366
438,236,423
14
Surplus/(Deficit) Provision
(712,882,216)
(568,346,007)
15
Cost of Fund (%)
12.19%
12.02%
16
Interest Earning Assets
11,145,450,308
10,697,290,645
17
Non interest earning Assets
8,623,044,760
6,051,027,398
18
Return on Investment (ROI)%
5.79
11.42
19
Return on Assets (ROA)%
20
Income from Investment
21
913,578,800
1,988,742,800
-
0.07
0.52
274,378,803
319,442,510
Earnings Per Share
0.88
5.09
22
Profit Per Share
0.88
5.09
23
Price - Earnings Ratio (Times)
114
20
123
Annexure
Annexure-D
Minimum Capital Requirement (MCR) as per BASEL-II

Under Risk Based Capital Adequacy
Particulars
Amount (Tk.)
A. Eligible Capital:
1. Tier-1 (Core Capital)
2,539,708,644
2. Tier-2 (Supplementary Capital)
151,985,437
3. Tier-3 (eligible for market risk only)
4. Total Eligible Capital (1+2+3)
2,691,694,080
B. Total Risk Weighted Assets (RWA):
18,843,700,000
C. Capital Adequacy Ratio (CAR) (A4/B)*100
14.28%
D. Core Capital to RWA (A1/B)*100
13.48%
E. Supplementary Capital to RWA (A2/B)*100

F.
Minimum Capital Requirement (MCR)
0.81%
4,000,000,000
Risk Weighted Assets (RWA)

Sl #
A.
Particulars
Credit Risk:
1633.85
On-Balance sheet
1488.5
Off- Balance sheet
145.35
B.
Market Risk
C.
Operational Risk
Total: RWA (A+B+C)
124
Amount (Tk.)
(in crore)
129.07
121.45
1,884.37
Annexure
Annexure-E
01. a) Name of the Directors and their interest in the Bank
Sl.
No.
Name of Directors
Designation
% of Interest
31-12-2013
% of Interest
31-12-2012
Chairman
01.
Mr. Md. Yousuf Ali Howlader (Govt. Nominated)
02.
Mr. ATM Murtozaa Reza Chowdhury ndc (Govt. Nominated)
Director
03.
Mr. Tapan Kumar Karmaker (Govt. Nominated)
Director
04.
Mr. Md. Farhad Uddin (Govt. Nominated)
Director
05.
Dr. Md. Zillur Rahman (Govt. Nominated)
Director
06.
Mr. Pradip Kumar Dutta (Govt. Nominated)
Director
07.
Mr. Rana Kaiser
Director
0.16
0.16
08.
Mr. Manwar Hossain
Director
0.63
0.63
09.
Mr. Anis Ahmed
Director
6.85
6.85
10.
Director
4.38
1.27
Designation
Entitles where
they have Interest
Position
Chairman
Govt. Nominated
Govt. Nominated
a) Name of the Directors and their interest in different entitles

Sl.
No.
Name of Directors
01.
02.
Director
Govt. Nominated
Govt. Nominated
03.
Director
Govt. Nominated
Govt. Nominated
04.
Director
Govt. Nominated
Govt. Nominated
05.
Director
Govt. Nominated
MD, BDBL
06.
Director
Govt. Nominated MD, Sonali Bank Ltd.
07.
Mr. Rana Kaiser
Director
Financial Institutions
Integrity Business
Company
Proprietor
08.
Mr. Manwar Hossain
Director
Anwar Group of
Industries
MD, Anwar Group
09.
Mr. Anis Ahmed
Director
MGH Group
MD, MGH Group
10.
Director
Representative of
Sunflower Life
Insurance Co. Ltd.
Special Director
02. Signaficant contracts where Bank is a party and where in Directors have interest : NIL
03. Shares issued to directors & executive without consideration or exercisable at discount : NIL
04. Related party transactions : NIL
05. Lending policies to related parties : NIL
06. Loan and Advances to Directors and their related concern : NIL
07. Business other than banking business with any related concern of the Directors as per Section 18(2) of
Bank Companies Act, 1991 : NIL
08. Investment in the securities of Directors and their related concern : NIL
125
Branch Network of BCB

We are connected through 44 branches (42 branches as on December, 2013) with the customer
60
42
38
40
25
25
30
20
0
2009
2010
01. Principal Branch

19, Rajuk Avenue
Taranga Complex (Gr. Floor)
Motijheel C/A, Dhaka-1000
Phone:09613222001, 9561551, 9559831
Fax: 9553832
E-mail: principal@bcblbd.com
02. Dilkusha Branch
16, Boliadi Mansion (1st Floor)
Dilkusha C/A, Dhaka-1000
Phone:09613225001, 9571375, 7171263
E-mail: dilkusha@bcblbd.com
03. Bangshal Branch
124, Shahid Syed Nazrul Islam Sharani
(North South Road), Dhaka-1100
Phone:09613221501, 9566140, 7166654
E-mail: bangshal@bcblbd.com
04. Moulvi Bazar Branch
77/6, Moulvi Bazar, Dhaka-1100
Phone:09613222096,7311051
E-mail: moulvibazar@bcblbd.com
05. Dholaikhal Branch
23, Goal Ghat Lane (1st Floor)
Dholaikhal, Sutrapur, Dhaka
Phone: 09613221196,7118665, 7165912
E-mail: dholaikhal@bcblbd.com
06. Banglabazar Branch
52, North Brook Hall Road
Banglabazar, Dhaka
Phone:09613221301,7121878, 7122227
E-mail: banglabazar@bcblbd.com
126
2011
2012
2013
07. Zigatola Branch

25/1, Zigatola, Dhaka-1209
Phone: 09613221601,8622154
E-mail: zigatola@bcblbd.com
08. Green Road Branch
Hossain Tower, 75 Green Road
Farmgate, Dhaka
Phone:09613221401, 8126886, 8154664
E-mail: greenroad@bcblbd.com
09. Mouchak Branch
93/1, New Circular Road, Dhaka-1217
Phone:09613223001, 8321072
E-mail: mouchak@bcblbd.com
10. Mirpur Branch
Plot-28, (1st & 2nd Floor)
Road No-Avenue-4Mirpur
Section-1, Dhaka
Phone: 09613222101,8020115
E-mail: mirpur@bcblbd.com
11. Gulshan Branch
Pladium Market, CEN(c)-1
Gulshan, Circle-02, A-2
Road# 95, Dhaka-1212
Phone:09613227001, 8881044, 8881045
E-mail: gulshan@bcblbd.com
12. Khilgaon Branch
290/3, Block-A
KhilgaonRailgate
Nahar Tower (2nd Floor), Dhaka-1219
Phone:09613222501,7215803
E-mail: khilgaon@bcblbd.com
13. Dhamrai Branch

Kayetpara, Dhamrai Bazar, Dhaka
Phone: 06222 88139
E-mail: dhamrai@bcblbd.com
23. Bogra Branch

99/1-B, Borogola, Bogra-5800
Phone: 09613228001,051 65441, 051 65710
E-mail: bogra@bcblbd.com
14. Tanbazar Branch

18, R. K. Mitra Road, Islam Super Market
Narayangonj-1400
Phone: 09613229001, 7640321, 7644750
E-mail: tanbazar@bcblbd.com
24. Naogaon Branch

Kader Manson (Ist floor)
Naogaon main Road, Naogaon
Phone:09613221801,0741 63222,07418118
E-mail: naogaon@bcblbd.com
15. Agrabad Branch

56, Agrabad C/A, JibanBimaBhaban
Chittagong
Phone:09613226001,031 724879, 031 726007
E-mail: agrabad@bcblbd.com
25. Comilla Branch

35/32 Zila School Road
Kandirpar, Comilla
Phone: 081 69902, 081 69951
E-mail: comilla@bcblbd.com
16. Jubilee Road Branch

Imam gazzali market(1st Floor)
30, Jubilee Road, Chittagong-4000
Phone: 031 627837
E-mail: jubileeroad@bcblbd.com
26. Seedstore Bazar Branch

Hobir Bari, Seedstore Bazar
Valuka, Mymensingh
Cell: 09613222701,01811408256
E-mail: seedstore@bcblbd.com
17. Khatungonj Branch

SW Tower, 304, Khatungonj
Chittagong-4000
Phone: 031 6188211
E-mail: khatungonj@bcblbd.com
27. Uttara Branch

House-37, Sector-07
SonargaonJanapath Road
Uttara, Dhaka-1230
Phone:09613222801,8921555
E-mail: uttara@bcblbd.com
18. Chaktai Branch

68, Rajakhali Road, New Chaktai
Bakolia, Chittagong-4000
Phone: 031 634612
E-mail: chaktai@bcblbd.com
19. Dewanhat Branch
1128, Sheikh Mujib Road.
Ahmed Mension, Chittagong
Phone: 031 728145,2513622.
E-mail: dewanhat@bcblbd.com
20. Khulna Branch
141, Sir Iqbal Road, Khulna
Phone: 041 732595, 041 2830144
E-mail: khulna@bcblbd.com
28. Feni Branch

Haji AbulKashem Super Market
Kamlapatti, House# 463
Word# 17, Feni Sadar
Phone: 09613222901,0331 69011, 0331 69012
Cell: 018 1208 5199, 018 1238 4767
E-mail: feni@bcblbd.com
29. Bijoynagar Branch
Al-Raji Complex, House# 166/167, Word# 36
Shahid Syed Nazrul Islam Smarani
Bijoynagar, Dhaka.
Cell:09613223101, 017 1147 9695
E-mail: bijoynagar@bcblbd.com
21. Doulatpur Branch

727 Jessore Road
Phone: 041 762589
E-mail: daulatpur@bcblbd.com
30. Muradpur Branch

House# 73/74, Word# 7
CDA Avenue, Muradpur, Chittagong.
Phone:09613223096,031-655982,656154
E-mail: muradpur@bcblbd.com
22. Sylhet Branch

Galleria Shopping & Apartment Complex
(2nd Floor), Jallarpar Road, Sylhet
Phone: 0821 723210
E-mail: sylhet@bcblbd.com
31. Mandari Bazar Branch

Babosayee Samitee market (1st Floor)
Lakshmipur Sadar, Lakshmipur.
Cell: 017 6653 8764, 017 5559 2396
E-mail: mandaribazar@bcblbd.com
127
32. Bandura Branch

Puraton Bandura
Nawabgonj, Dhaka.
Cell:09613223301,01755592397
E-mail: bandura@bcblbd.com
39. Pragati Sarani Branch (NEW)

KA/218, Kuril Chourasta,
Zakir Complex (Ist floor), Dhaka.
Phone:09613224096,09613224097
E-mail: pragati@bcblbd.com
33. Jessore Branch

Mohsin Super Market
10 R. N. Road, Jessore.
Phone:09613223501,042171180
E-mail: jessore@bcblbd.com
40. Kopil Muni Branch (New)

SorojinibanijjobeponiMarket(Ist floor),
Kopil muni SohachoriViddaMondir,
P/O-Kopil Muni. P/S- Paikgacha, Khulna.
Phone: 9613224101,01755653280-1
E-mail: kopilmuni@bcblbd.com
34. Dinajpur Branch

SM Tower (2nd Floor)
Bahadur Bazar, Dinajpur.
Phone:09613223401,053166555,053166556
E-mail: dinajpur@bcblbd.com
35. Foreign Exchange Branch
Surma Tower (Level-2)
59/2 PuranaPaltan, Dhaka-1000.
Phone:9573467,9573468
E-mail: fex@bcblbd.com
36. Juri Branch
HaziImzad Ali Market
Vobanigonj Bazar, Juri
Moulvibazar.
Phone:09613223701,01712620827,0862757192
E-mail: juri@bcblbd.com
37. Batajor Branch
Batajor Bazar
Batajor, Gournadi, Barishal.
Phone:09613223901,01755618793
E-mail: batajor@bcblbd.com
38. Savar Branch
63/14 Bazar Road
Islam Plaza, Savar, Dhaka.
Phone:09613223801,7742150,7742151
E-mail: savar@bcblbd.com
41. Barishal Branch

Elahi Tower, Holding No: 523
Bazar Road, Barisal Sadar, Barishal
Phone: 09613224201,0431-2176433
Fax-0431-61616
E-Mail: barisal@bcblbd.com
42. Kathgora Bazar Branch
HaziNujomuddin Super Market
Kathgora Bazar, Post: Jirabo, Union: Ashulia
Ward No: , PS: Ashulia, Dhaka
Phone: 09613220000,7792634
Fax-02-7792632
E-mail: kathgora@bcblbd.com
43. Meraj Nagar Branch
Merajnagar Supper Market(2nd
floor),Shaympur,Kadomtoli,
Dhaka-1362.
Phone: 01670878940
E-mail-merajnagar@bcblbd.com
44. Kangshanagar Bazar
Kangshanagar Bazar, Burichang
Comilla-3520
Phone: 01712620827
E-mail: kangshanagar@bcblbd.com
Proposed Branches
1. Shibchor Branch, Madaripur
2. Kaliakoir Branch, Gajipur
3. Sonargaon Branch, Narayangonj
4. Bolla Branch, Tangail
128
Notes
Notes
PROXY FORM
I/We ............................................................................. of ................................................................................
...................................................................................................................................................................................
................................................. being a Shareholder of Bangladesh Commerce Bank Limited do hereby
appoint Mr./Mrs./Miss .............................................................. of ............................................................................
...................................................................................................................................................................................
as my/our proxy to attend and vote for me/us on my/our behalf at the 16th Annual General Meeting of the
Company to be held on Thursday, 25 September, 2014 at 12.00 am at National Sports Council Auditorium,
(NSC Tower) 62/3, Purana Palton, Dhaka. and at any adjournment thereof.
As witness my/our hands this.......................................... day of ................................. 2014.
(Signature of the proxy)

Folio No:..................................................
No. of Shares:...........................................
Affix
Revenue
Stamp
of Tk. 20.00
Date:........................................................
(Signature of the Shareholder)

Folio No:..................................................
No. of Shares:...........................................
Date:........................................................
Note: The proxy form should reach the Registered Office of the Company not less than 72 hours before the
time fixed for the meeting.
Signature Verified
Authorized Signatory
ATTENDANCE SLIP
I/We hereby record my/our attendance at the 16th Annual General Meeting of the Company to be held on
Thursday, 25 September, 2014 at 12.00 am at National Sports Council Auditorium, (NSC Tower), 62/3,
Purana Palton, Dhaka.
Folio No: ............................................................................................
No. of Shares: .................................................................................
Name of the Member/proxy: ...........................................................
Signature........................................................................................
Date:..............................................................................................
Note: Please present this slip at the Reception Desk. Non Shareholder & Children will not be allowed at the meeting.
Design & Print : Tamim Printing, 01715-128588
Corporate Office: Eunoos Trade Center (Level-22), 52-53, Dilkusha C/A

Dhaka-1000, Bangladesh, PABX : 9559831, 9571581, Fax : 88-02-9568218
E-mail : info@bcblbd.com, Web : www.bcblbd.com, SWIFT : BCBLBDDH

BCB Annual Report - 2013

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2013

BCB Annual Report 2013

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Notice of the 16th Annual General Meeting

Our Strategic Priorities

Brief Profile of Directors

Message from the Chairman

CEO & Managing Director's Round Up

Report of the Board Audit Committee

Economic Impact Report

Report on Corporate Governance

Corporate Social Responsibility (CSR)

Management Review of Business

Product & Service Review

Business Outlook 2014

Notes to the Financial Statements

BCB Annual Report 2013

ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2013

Mohammad Saiful Islam, FCMA

BCB Annual Report 2013

Corporate Office: Eunoos Trade Center (Level-22)

Notice of the 16th Annual General Meeting

Dated: August 29, 2014

By order of the Board of Directors

(Mohammad Saiful Islam)

BCB Annual Report 2013

BCB Annual Report 2013

We can challenge any sort

To become a Bank of first choice by the customers with

BCB Annual Report 2013

Bangladesh Commerce Bank Ltd. is committed to

BCB Annual Report 2013

OUR CORPORATE FOOTSTEPS

Board of BCBL directors been formed

25th Branch opened in Comilla

BCB relocated its Corporate Office from Taranga Complex to 52-53,

BCB launched "BCB Credit Card"

26th Branch opened in Mymensigh as Seedstore Bazar Branch

27th Branch opened in Dhaka as Uttara Branch

28th Branch opened in Feni as Feni Branch

29th Branch opened in Dhaka as Bijoynagar Branch

30th Branch opened in Chittagong as Muradpur Branch

BCB launched Mobile Banking (Mobile Financial Services)

31st Branch opened in Lakshmipur as Mandaribazar Branch

32nd Branch opened in Dhaka as Bandura Branch

33rd Branch opened in Jessore as Jessore Branch

34th Branch opened in Dinajpur as Dinajpur Branch

35th Branch opened in Paltan, Dhaka as Foreign Exchange Branch

36th Branch opened in Moulvibazar as Juri Branch

37th Branch opened in Dhaka as Savar Branch

38th Branch opened in Barisal as Batajore Branch

39th Branch opened in Dhaka as Pragati Sarani Branch

40th Branch opened in Khulna as Kapilmuni Branch

41th Branch opened in Barisal as Barisal Branch

42th Branch opened in Dhaka as Kathgora Bazar Branch

BCB Annual Report 2013

OUR STRATEGIC PRIORITIES

BCB Annual Report 2013

Bangladesh Commerce Bank Ltd. (BCB)

1st June, 1998

Our Core Business :

BDT 10,000 Million

BDT 1,989 Million

Face Value Per Share : BDT 100 per share