Dutch Bangla Bank

Dutch-Bangla Bank Limited

Type Public
Traded as DSE: DUTCHBANGL
Industry Banking
Founded Dhaka, Bangladesh (1995)
Headquarters Dhaka, Bangladesh
M Sahabuddin Ahmed -Founder &
Chairman; Financierings-
Key people
Maatschappij voor
Ontwikkelingslanden (FMO)
Banking services, ATM services,
Consumer Banking
Products
Corporate Banking
Investment Banking
Employees 1600
Website [1] [2]

Dutch-Bangla Bank Limited (the Bank, DBBL) is a scheduled joint venture commercial bank
between local Bangladeshi parties spearheaded by M Sahabuddin Ahmed (Founder & Chairman)
and the Dutch company FMO. DBBL was established under the Bank Companies Act 1991 and
incorporated as a public limited company under the Companies Act 1994 in Bangladesh with the
primary objective to carry on all kinds of banking business in Bangladesh. DBBL commenced
formal operation from June 3, 1996. The Bank is listed with the Dhaka Stock Exchange Limited
and Chittagong Stock Exchange Limited.

DBBL is most widely recognized for its donations to social causes and its IT investment (largest
ATM network). However it has recently[when?] stated that it will stop expansion on its ATM
network as the current numbers have exceeded demand and hence diminishing returns (if any).
Although it is widely believed it is a loss-making/subsidized unit which DBBL rationalizes as
quasi CSR.

The bank is often colloquially referred to as "DBBL", "Dutch Bangla" and "Dutch Bangla Bank".

Contents
 1 Banking
 2 ATM Network/DBBL Nexus Participating Banks
  3 Automation Services for Banks & co-branded ATMs
 4 Fast Track
 5 Internet Payment
 6 Social Work
o 6.1 Dutch-Bangla Bank Research Center
o 6.2 The BDT Tk 102 Core Annual Scholarship
 7 Mobile Banking
 8 References

 9 External links

Banking

A Dutch Bangla Bank branch in Banani.

After instability and frequent management changes in its initial years, DBBL overcame these
obstacles to establish rapid growth since the year 2000. The bank grew its reputation through
social work rather than profits. The bank's conservative nature, long-term strategies, hefty social
donations and technology investments have always led to modest but steady profits. DBBL has
been known to be overly conservative in its banking practices. Much of the success and strategy
has been attributed to the leadership of the founder chairman, M Sahabuddin Ahmed.

Despite being the largest corporate donor in Bangladesh, investor confidence was unhindered. In
March 2008, DBBL share prices reached Tk. 14325.80 in the Dhaka Stock Exchange, setting the
record for the highest stock price in the history of Bangladesh. It is also one of the few banks that
does not participate in merchant/investment banking (which can lead to sporadic growth).

Dutch Bangla Bank is noted to be the first and only local bank in Bangladesh to have an
automated banking system. The bank has spent over BDT 2 Billion in automation upgrades (first
bank in Bangladesh to do so). This automation took place in 2003 whereby services of the bank
were available uniformly though any branch, ATM and internet. Banking was a paper based until
DBBL, with its wide local network, delivered banking automation and modern banking services
to the masses. This effectively introduced the 'plastic money' concept into the Bangladeshi
society. The entire automation system was imported and is the most expensive banking related IT
project in Bangladesh.
The ATM count stood at 140 eclipsing other networks by a large margin. This rapid increase in
DBBL's ATM network has led the majority of other banks to sign sharing agreements instead of
pursuing their own ATM network.

In 2006, Dutch Bangla Bank ventured into the realm of personal credit by offering automatic
credit facilities to its Debit card (DBBL Nexus) holders. It also continued expanding its ATM
network with the intention of installing more than 400 machines, even though it is widely
believed that the ATM division will not break even and is a setback to the profit margins.

In 2007 the bank entered a strategic alliance with Citibank NA, where both parties will provide
retail banking services of DBBL for its employees and owners of Citibank corporate customers
in Bangladesh. In the same year DBBL became the first bank in Bangladesh to offer SMS
Banking services.

DBBL maintained a proprietary policy on its ATM network until 2007. This was changed when
DBBL and Standard Chartered Bank (SCB) signed an agreement that will let SCB use DBBL's
ATM network. Thus ending the unhealthy competition between the organizations. This sharing
invitation was extended to all other banks shortly after. Number of DBBL ATMs eclipsed the 200
mark.

In 2010 most sharing agreements with foreign banks have been abruptly rendered invalid due
Visa card's new policies enforced upon DBBL. In response to Visa's decision to terminate its
ATM facilities with DBBL, Unionpay approached DBBL to convert all the retail network to
accept Unionpay cards. DBBL and Unionpay have decided for a major nationwide launch to
make Unionpay the single largest card issuer in Bangladesh.

ATM Network/DBBL Nexus Participating Banks

A DBBL Nexus ATM booth.

DBBL maintains its own network and automation without the involvement/assistance of any
third party companies. Access to ATM services fee is BDT 230 annually for DBBL clients.
Partner banks are charged a subsidized Tk. 10, although the end price for the customer may be
higher due to the extra charges levied by the partner bank.

DBBL has over 870 ATM's installed all over Bangladesh, making it the largest network by a
large margin. In 2009 DBBL announced the biggest its biggest expansion goal for its network.
The total number of ATMs will be 850 by the end of 2009 to cater the needs of customers at their
doorsteps.[1] It also hinted that this may be the last ATM expansion due to the increasing costs of
subsidizing such a system, but clearly stated that it has no intention of introducing any charges.

On the digital day (10/10/10), the DBBL inaugurated its (digital) 1000th ATM at the factory
premises of the GlaxoSmithKline, Chittagong.(as on 24th March 2012 it has more than 2000
ATM and 200 FT)
Banks that have signed agreements to share DBBL's ATM network (as of May 2009):

 Citibank (locally known as "Citibank NA")

 Standard Chartered Bank (SCB)
 Commercial Bank of Ceylon
 Mutual Trust Bank
 Bank Asia
 National Credit and Commerce Bank Limited (NCC Bank)
 Prime Bank
 United Commercial Bank Limited (UCBL)
 Southeast Bank Limited (SEBL)
 The City Bank (locally known as "City Bank" to differentiate between "Citibank NA")
 First Security Bank
 Trust Bank
 Mercantile Bank
 Q-Cash network Banks (1. Janata Bank 2. Eastern Bank 3. IFIC Bank 4. AB Bank 5.
Shahjalal Islami Bank 6. Basic Bank 7. Jamuna Bank 8. Mercantile Bank 9. National
Bank 10. National Credit and Commerce Bank 11. Pubali Bank 12. Sonali Bank 13. Trust
Bank 14. Uttara Bank 15. State Bank of India 16. The City Bank 17. Social Islami Bank)
 Dhaka Bank
 EXIM Bank

Automation Services for Banks & co-branded ATMs

Dutch-Bangla Bank initiated a co-branded ATM initiative in Bangladesh where the bank would
provide ATMs and networking free of charge to any bank's branches. Mutual Trust Bank was the
first bank to take advantage and the first co-branded ATM in Bangladesh started operation on 28
May 2008.

In 2008, Dutch-Bangla Bank started offering full banking automation services to other banks
where without any investment or technical knowledge, member banks can automate themselves
in matter of months using DBBL's infrastructure (this includes required hardware, card issuance,
ATM usage & switching software).

Fast Track
During the Q1 of 2010, Dutch Bangla Bank Ltd. introduced "Fast Track" in the country. Fast
Track is first of its kind in the country that is like a mini branch. Along with the generic ATM
withdrawal service, it lets the customer deposit small amounts of money to DBBL account! The
limit is currently 20,000 BDT. Moreover, the Fast Track also provides account opening service
and loan information. Presently the number of First Tracks is more than 200 and the number of
ATMs is more than 2000 all over in Bangladesh[2][unreliable source?] (As on March 24, 2012).

Internet Payment
On 3 June 2010, Dutch Bangla Bank Ltd. announced to allow internet payments system. Using
their Internet Payment Gateway merchants will be able to charge their customers' Visa, Masters,
DBBL Nexus and Maestro cards. This is going to be revolutionize the [e-commerce] in
Bangladesh! Presently DBBL has more than 200 of Frast Tracks and more than 2000 ATMs all
over in Bangladesh[3]

Any Visa/MasterCard cardholder (local or overseas) can use their cards to pay at a number of e-
Merchants against their purchase of goods. They can also pay DESCO electricity bills. DBBL is
working with airlines, railways, utility companies, educational institutions, and stock exchanges
for facilitating purchase of tickets, payment of bills/fees and IPO subscription through the
Internet Payment Gateway. It is also working to make an interface with PayPal. Once everything
is in operation, this will change the payment mechanism in Bangladesh and will reduce public
sufferings and tensions.

Social Work
Dutch Bangla Bank supports social work extensively and is one of the largest private donors in
Bangladesh. Under the vision of M Sahabuddin Ahmed, the bank contributes extensively through
its foundation Dutch Bangla Bank Foundation. This has been one of the biggest priority for the
bank since its inception. As a result the organization has been granted numerous national and
international awards for its role in the development of Bangladesh. The Dutch-Bangla Bank
Foundation was established under the vision of its founder chairman, M Sahabuddin Ahmed, in
order to help the people of Bangladesh. DBBL is the largest corporate donor in Bangladesh with
total donations exceeding BDT 1.3 billion.

The bank donates mainly towards social awareness programs, medical and educational fields.
Notably DBBL also maintains the largest scholarship program in Bangladesh whereby
college/university education tuition and expenses are fully paid for unconditionally by the bank.

In 2007, the bank won the Bangladesh Business Awards for being the 'Best Financial Institution'
mainly for its commitment to technology and community service. In 2007 alone, DBBL donated
BDT 220 million towards social causes.

Dutch-Bangla Bank Research Center

In 2008, DBBL announced a donation of Tk 100 million to fund the construction of a 11 storey
research center, titled "Dutch-Bangla Bank Research Centre for Advanced Research in Arts and
Social Sciences" at the Dhaka University campus in Dhaka, Bangladesh. It was Dhaka
University's largest ever donation from a private company. The research center, which would be
the first of its kind in Bangladesh, will be supervised by renowned teachers, scholars and
researchers. It will also award scholarship to researchers and scholars at home and abroad.

The BDT Tk 102 Core Annual Scholarship

In February 2011, it was announced that local sponsoring shareholders will not be receiving
dividends to "achieve greater things". In May 2011, DBBL announced the largest scholarship
program in Bangladesh where DBBL would have to donate Tk 102 crore every year. DBBL was
already the single largest corporate donor in Bangladesh and this new announcement had
surprised many, especially because it came from such a small bank. The structure of this
scholarship had greatly benefited students who had the academic performance, but required the
financial aid.

Corresponding this announcement, DBBL published the first group of awardees in a 10-page
advertisement spread in multiple newspapers. The recipients were awarded in a ceremony where
the stadium being used was not big enough to hold all the guests. Speakers at this event greatly
thanked DBBL's founder chairman, M Sahabuddin Ahmed, for his vision and dedication in
creating opportunities for students.

Mobile Banking
Dutch-Bangla Bank Limited (DBBL) has for the first time introduced its mobile banking service,
expanding the banking service from cities to remote areas.[4] Bangladesh Bank Governor Atiur
Rahman inaugurated the service in July, 2011 by depositing Tk 2,000 and withdrawing Tk 1,500
through Banglalink and Citycell mobile networks in Motijheel area. Bangladesh Bank has
already allowed 10 banks to initiate mobile banking. Of them DBBL kicked off first. "Mobile
banking is an alternative to the traditional banking through which banking service can be reached
at the doorsteps of the deprived section of the society,” the central bank governor said at an
inaugural press briefing at Hotel Purbani. Atiur Rahman said through mobile banking various
banking services including depositing and withdrawing money, payment of utility bills and
reaching remittance to the recipient would be possible. By going to the DBBL-approved Citycell
and Banglalink agents throughout the country, the subscribers can open an account provided they
show the necessary papers and pay a fee of Tk 10. To use the banking service, subscribers must
own a cell phone from any provider. The bank gives subscribers a four-digit PIN. By using the
PIN, subscribers can use a number of banking services, including depositing and withdrawing
money, while maintaining account security. Customers may hand over cash to agents in the
bank's network, and agents can coordinate the transaction from their mobile phones, helping
account holders securely complete banking tasks using their PINs. Customers can deposit or
withdraw money up to five times per day, up to Tk 5,000 per day. One percent of the transaction
account or Tk 5, whichever is greater, will be deducted as a cash-in charge. The charge for cash-
out is 2 percent of the transaction amount or Tk 10, whichever is greater. There are no fees for
registration, salary or remittance disbursement services.