Annual Report 2012

Sailing Through Success
We have continued to achieve awards which we dedicate to our valued stakeholders You!
We received these prestigious accolades in 2012, we present them to you as well. Thank
you for staying with our journey towards excellence.
These achievements include SAFA (South Asian Federation of Accountants) Best
Presented Annual Report Awards 2011 (Winner in Private Sector Banks category and
Winner- 1st Runner up in Overall category), ICAB (Institute of Chartered Accountants of

Bangladesh) National Awards for Best Presented Annual Reports 2011, ICMAB (Institute
of Cost & Management Accountants of Bangladesh) Best Corporate Award 2012, Bizz
2012- Inspirational Company Award from WORLDCOB (World Confederation of Business)

in recognition of consistent growth, corporate social responsibilities (CSR) and use of
technology and Bangladesh Business Awards-2011 from DHL-The Daily Star in the
category of Best Financial Institution.
ICAB National Award

8th consecutive
victory
1st Prize
Bangladesh
Business
Awards-2011
DHL-The Daily Star
The Bizz 2012

Inspirational Company
Award
ICMAB Best Corporate

Award
3rd consecutive victory
1st Prize
Contents
Letter of Transmittal
03
Notice of the 18th Annual General Meeting
04
Standard Disclosure Index
05
Vision
08
Mission
09
Corporate Philosophy
10
Strategic Priority
11
Ethics, Integrity and Trust
12
Green Banking
13
Statement Regarding Forward Looking Approach 14

Corporate Profile
15
Milestones
17
Board of Directors & Profile
18
Governance
Composition of Board and Committees
27
Group Chairman's Message
28
Managing Director & CEO's Roundup
32
Shareholders' Information
Financial Highlights- Group & PBL
136
Financial Highlights- PBL
137
Key financial Data & Key Ratios- PBL
138
Graphical Presentation- PBL
140
Segment Analysis
142
Distribution of Shareholdings in 2012
143
Shares held by the Directors in 2012
143
Economic Impact Report
144
- Capital Adequacy
144
- Value Added Statement
145
- Economic Value Added Statement
146
- Payment of Dividends
147
Market Price Information
148
Financial Calendar 2012
149
Investors' Relation & Inquiries
149
Glimpses of 17th AGM
150
Directors' Report on Financial Statements and Internal Control 37

Report of the Audit Committee
38
Report of Prime Bank Shari'ah Supervisory Committee 40

CEO / CFO's Declaration to the Board
41
Corporate Governance
42
Sustainability Report
64
Sustainability Report - Green Banking
72
Corporate Management
75
Corporate Organogram
78
Group Corporate Structure
79
Management Discussion & Analysis
80
Risk Management
107
Report on Risk Management by Chief Risk Officer
118
Market Discipline Disclosures on Risk Based Capital (Basel-II) 120
Rationale of the Cover

Two Thousand Twelve did not
Turn out to be as predicted.
Yet the hard-work and strive
Of yester years has kept
Prime Bank sailing
Through success.
Other Information
Media Highlights 2012
151
Customer Care
153
Prime Bank Foundation
169
Products and Services
164
(Corporate Social Responsibility)
Financial Reports
Directors' Report
193
Certificate regarding compliance of BSEC Notification
205
Auditors' Report to the Shareholders
206
Financial Statements- Group & PBL
208
Financial Statements- OBU
310
Financial Statements- PBIL
322
Financial Statements- PBSL
342
Financial Statements- PECL, Singapore
360
Financial Statements- PBL Exchange (UK) Ltd.
384
Financial Statements- PBL Finance (Hong Kong) Ltd. 395

Album of some significant events 2012
407
Branch Network
410
Glossary
415
Letter of Transmittal
All Shareholders,
Bangladesh Securities and Exchange Commission,
Registrar of Joint Stock Companies & Firms,
Dhaka Stock Exchange Limited and
Chittagong Stock Exchange Limited
Dear Sir(s),
Annual Report of Prime Bank Limited for the year ended December 31, 2012
Enclosed please find a copy of the Annual Report of Prime Bank Limited along
with the Audited Financial Statements as at the position of December 31, 2012. The
Report includes Income Statements, Cash Flow Statements along with notes
thereon of Prime Bank Limited, its Subsidiaries namely Prime Exchange Co. Pte.
Limited, Singapore, PBL Exchange (UK) Limited, PBL Finance (Hong Kong)
Limited, Prime Bank Investment Limited and Prime Bank Securities Limited.
This is for your kind information and record please.
Best regards.
Yours sincerely,
Mohammed Ehsan Habib

Company Secretary
Annual Report 2012 3

The table given below provides a cross reference to the standard disclosures to the key sections of the Annual Report-2012:
Items
Page No.
Corporate Objectives, Values & Structure

Vision and Mission
8, 9
Overall strategic objectives
11
Core values and code of conduct/ethical principles
12
Profile of the Company
15
Directors profiles and their representation on Board of other companies & Organization Chart
18-27, 78-79, 286-288
Management Report and analysis including Directors Report / Chairmans Review/ CEOs Review
A general review of the performance of the company
28-35, 80-105, 193, 202
Description of performance of various activities/products/segments of the Bank and Group during the period under review 80, 105, 136-148, 193-202
A brief summary of the Business and other Risks facing the organization and steps taken to effectively manage such risks
A general review of the future prospects/outlook.
107-134
35, 82
Social Corporate Responsibility (CSR) Initiatives
64-74, 169-191
Environment related Initiatives
72-74
Information on contribution of the Bank to its responsibilities towards the staff (including health & safety)
65-68
Information on Bank's contribution to the national exchequer & to the economy
64-74, 145-146
Disclosure of Accounting policies and General Disclosure

Disclosure of accounting policies relevant to assets, liabilities, Income and expenditure in line with best reporting standards
Any Specific accounting policies
222-238
Impairment of Assets
Changes in accounting policies/ Changes in accounting estimates
Segment Information
Comprehensive segment related information bifurcating segment revenue, segment results and segment capital employed
Availability of information regarding different segments and units of the entity as well as non-segmental entities/units
100, 142, 305
Segment analysis of
- Segment Revenue, Segment Results, Turnover, Operating profit, Carrying amount of Net Segment assets
Financial Statements
Disclosures of all contingencies and commitments
Comprehensive related party disclosures
Disclosures of Remuneration & Facilities provided to Directors & CEO
209, 216, 264-265

278-279
44, 52-53, 271
Statement of Financial Position / Balance Sheet and relevant schedules

Income Statement / Profit and Loss Account and relevant schedules
Statement of Changes in Equity / Reserves & Surplus Schedule
Disclosure of Types of Share Capital
Statement of Cash Flow
206-406
Consolidated Financial Statement (CFS)

Extent of compliance with the core IAS/IFRS or equivalent National Standards
Disclosures / Contents of Notes to Accounts
Information about Corporate Governance
Board of Directors, Chairman and CEO
Vision, Mission and Strategy
18-27
8-9, 11, 194-195
Items
Audit Committee (Composition, role, meetings, attendance, etc.), Internal Control & Risk Management
Ethics and Compliance
Remuneration and other Committees of Board
Human Capital
Page No.
27, 42-62
12, 27-62
44, 52-53, 271
65-68
Communication to Shareholders & Stakeholders

Environmental And Social Obligations
Management Review and Responsibility
Any other investor friendly information
64-74, 169-191
80-105
149
Stakeholders Information
Distribution of shareholders (Number of shares as well as category wise, e.g Sponsors, FII etc)
Shares held by Directors/Executives and relatives of Directors/Executives
Redressal of investors complaints
143, 262
52-53, 143, 262
149
Graphical/ Pictorial Data

Earnings per Share
Net Assets
Stock Performance
140-148
Shareholders Funds
Return on Shareholders Fund
Horizontal/Vertical Analysis including following.
Operating Performance (Income Statement)
- Total Revenue, Operating profit, Profit Before Tax, Profit after Tax, EPS
Statement of Financial Position (Balance Sheet)
99, 101, 136-148,

199-202
- Shareholders Fund, Property, Plant & Equipment, Net Current Assets, Long Term Liabilities/ Current Liabilities
Profitability/Dividends/ Performance and Liquidity Ratios
Gross Profit Ratio
Earning before Interest, Depreciation and Tax
Price earning ratio
Current Ratios
136-148
Return on Capital Employed

Debt Equity Ratio
Statement of Value Added and Its Distribution
Government as Taxes
Shareholders as dividend
Employees as bonus/remuneration
144-148
Retained by the entity

Market share information of Banks product/services
Economic value added
Additional Disclosures
Sustainability Development Reporting
Human Resource Accounting
64-74, 169-191
68
Items
Page No.
Specific Disclosures
Disclosure of Ratings given by various rating agencies for Instruments issued by/of the Bank
15, 51
Details of Advances portfolio Classification wise as per the direction issued by the central bank
Disclosure for Non Performing assets
- Movements in NPA
- Sector-wise breakup of NPA
245-251, 258-259
- Movement of Provisions made against NPA

- Details of accounts restructured as per regulatory guidelines
Maturity Pattern of Key Assets and Liabilities (ALM)
Classification and valuation of investments as per regulatory guidelines/Accounting Standards
307
242-245, 283
Business Ratio/Information
- Statutory Liquidity Reserve (Ratio)
- Net interest income as a percentage of working funds / Operating cost efficiency ratio
- Return on Average Asset
- Cost / Income ratio
- Net Asset Value Per Share
- Profit per employee
99-101, 136-148
199-202
- Capital Adequacy ratio

- Operating profit as a percentage of working funds
- Cash Reserve Ratio / Liquid Asset ratio
- Dividend Cover ratio
- Gross Non-Performing assets to gross advances/ Non-Performing Loans (Assets) to Total Loans (Assets)
Details of credit concentration / Sector vise exposures
The break-up of Provisions and contingencies included in the Profit and Loss Account
Disclosure under regulatory guidelines (Market Discipline- Pillar 3 Disclosures under Basel-II)
Details of Non-Statutory investment portfolio
245-251
258-259, 273
120-134
242-245, 283
Disclosure in respect of assets given on operating & finance lease
252, 284
Disclosures for derivative investments
242-245
Bank's Network: List of Branches or Centers
410-415
Our Vision
To be the best Private
Commercial Bank in Bangladesh
in terms of eficiency, capital
adequacy, asset quality, sound
management and profitability
having strong liquidity.
Our Mission
To build Prime Bank Limited into
an efficient, market driven,
customer focused institution with
good corporate governance
structure.
Continuous improvement of our
business policies, procedure and
efficiency through integration of
technology at all levels.
Corporate Philosophy
For our Customers
To provide the most courteous and efficient service in every aspect of its business
To be innovative in the development of new banking products and services
For our Employees
By promoting their well-being through attractive remuneration and fringe benefits
By promoting good staff morale through proper staff training and development,
and provision of opportunities for career development
For our Shareholders
By forging ahead and consolidating its position as a stable and progressive
nancial institution
By generating profits and fair return on their investment
For our Community
By assuming our role as a socially responsible corporate citizen in a tangible manner
By adhering closely to national policies and objectives thereby contributing towards the
progress of the nation
........upholding ethical values and best practices
Constantly seeking to improve performance by aligning our goals with stakeholders

expectations. Because we value them.
Strategic Priority
Maintain strong capital base by expediting borrowers rating, concentrating on lending

portfolio having lower capital charge, strengthening Internal Capital Adequacy Assessment
Process (ICAAP).
Continuation of diversification of credit portfolio in corporate exposure, emphasize on retail,

SME and agricultural loan, address gender issue by providing loans to women entrepreneurs
in SME segment and emphasize on geographical diversification.
Improvement of deposit mix by maintaining efficient deposit mix, increase share of low cost
and no cost deposit in total deposit, increase non-funded business.
Maintain adequate level of liquidity through minimizing asset-liability mismatch and recovery
of past due loans.
Diversification of products and services by introducing IT based innovative products and

alternate delivery channels.
Increase share of inward remittance by expansion of existing exchange houses, opening of

new exchange houses, increase in domestic network for the beneficiaries through strategic
alliance, development of new products for the NRBs.
Increase non-funded (non-interest fee based) income.
Extend banking services to un-banked and under banked people for inclusive growth.
Innovative approach in dealing with complex and large transactions / fund requirements with
strategic alliance.
Improve internal governance through strengthening good corporate cultures, motivation,

training and supervision as per KPIs in all levels of management.
Strengthening internal control and monitoring.
Conduct BPR (Business Process Re-engineering) in different functional areas to improve

efficiency and bring in required structural change.
Improvement of IT infrastructure in order to develop new IT based products and services.
Integrated marketing effort by creating a customer-orientated culture, Brand archaeology

study (in-depth research for brand strategy development), Brand Repositioning and extensive
marketing for branding Hasanah.
Development in Human Resources Management System to motivate and retain the Human
Resources and transform Human Resources to Human Capital through proper training in
every aspects of working area.
Cost optimization at all levels of operation by ensuring budgetary control.
Expansion of activities related to Corporate Social Responsibility and Green Banking.
Eth
ics
Ethics, Integrity and Trust
rity
eg
nt
Tru st
Banking deals with public money where Ethics, Integrity and

Trust is utmost important. Prime Bank upholds these
principles in every section by its management and customer
service. The following are the key principles of Employee
Codes of Ethics and Business Conduct:
Provide service to customers with uncompromising

integrity, utmost respect, unwavering responsibility and
dedicated citizenship
Protect privacy and confidentiality of customer
information
Prevent money laundering and fraud
Demonstrate workplace respect
Green Banking
The environmental degradation needs to be tackled

in a concerted manner by all.
Society demands that business also
take responsibility in safeguarding the planet.
As a responsible Corporate Citizen,
Prime Bank reinforced its Green Banking initiatives.
Statement Regarding Forward Looking Approach

The Annual Report contains some forward looking statements regarding the business environment and its likely
effect in the financial conditions of PBL. Statements which are not historical facts including statement of PBLs
belief, expectation are forward looking statements. Words such as plan, anticipate are forward looking statements.
Forward looking statements involve inherent risks and uncertainties. Some factors may actually cause actual result
to differ and some may significantly deviate from the forward looking approach. Some of the factors that may affect
the business environment are given below:
Changes in general economic condition resulting from natural calamities and political disturbances;
Changes in government policy issues;
Increase in Tax, VAT on banking services;
Increase in corporate tax rate;
Increase in CRR and SLR of the banks;
Withdrawal of incentives given to some thrust sectors which may make the projects slow moving;
Directives to reduce the lending rates to finance essential items;
Increase in provisioning requirement may reduce the ROA and ROE;
Reducing the margin ratio for investment accounts;
Volatility in interest rate;
Volatility in capital market arising from speculations;
Compliance issues raised by the international forums which are likely to affect the export growth;
Rise in international prices of essentials which may result to volatility in Foreign Exchange Market;
International embargo/unrest in Middle-East countries may affect remittances and trade;
Risk management of lending portfolio often requires stress testing which is based on sophisticated mathematical
tools and cannot solely be dependent on existing MIS. The level of technology in banking industry is yet to
acquire that sophistication.
Corporate Profile
WHO WE ARE
FOCUSED BUSINESS STRATEGY
Established in April 1995 by a group of visionary entrepreneurs,

Prime Bank Limited (PBL) is known for its superior service quality,
brand image, strong corporate governance and corporate culture.
Committed for excellence, PBL is a top-tier bank in Bangladesh
and reputed among regulators as distinctly compliant and among
customers as agile and responsive to change. The bank is aligned
to its vision, mission, values and strategic priorities.
The bank is focused on few strategic issues encompassing

change management in the short to long period through the
implementation of various policies, processes and activities to
ensure continuous, sustainable and qualitative growth, with the
sole objective of Institution Building. An effective Cluster
Management (Mentorship) program was implemented. Branch
management is now being continually exposed to mature thoughts
and ideas through Mentors resulting in qualitative improvement of
their business and operational activities.
OUR CORE BUSINESS

PBL focuses on a wide range of financial products and services
which include commercial banking through both conventional and
Islamic mode, merchant and investment banking, SME and retail
banking, credit card and off-shore banking. The bank plays the
leading role in syndicated and structured financing. It has
expertise in corporate credit and trade finance and made
extensive market penetration with continuous growth in corporate,
commercial and trade finance sectors. It has fully owned exchange
houses in Singapore, UK and a fully owned finance company in
Hong Kong.
Organizational and structural changes were made in managing the

banks operations more effectively. Business Units like
Corporate/Commercial, Retail, SME, Cards were restructured and
established to provide sharper business focus to each of these
revenue earning sources. Credit approvals, quality and recovery
departments were strengthened and separated from business sales
to facilitate faster growth and maintain quality simultaneously.
Support services to ensure greater customer satisfaction with a
wider range of products and services were implemented. New
departments like Alternate Delivery Channels, Cards back office,
Call Centers, operational support were established.
CORPORATE RANKING
THE PBL BRAND
PBL ranked 9th in the Dhaka Stock Exchange (DSE) by market

capitalization which stood at Tk 34,624 million as at the end of
2012. The bank has been ranked as 3rd company by DSE-20
Index. Balance sheet size of PBL was around Tk. 474 billion
equivalent to USD 5.9 billion. With wide customer-base PBL
established itself as the Market Leader among the conventional
private commercial banks for deposits and advances.
PBLs superior service quality, strong corporate governance has

given it an Excellent Brand Image. To continue to reinforce the
PBL Brand, the bank is continuously improving its customer
service, corporate governance and CSR activities by remaining
innovative and caring.
CREDIT RATING
PBL continues to earn recognition and trust for its strong and
sustained financial performance and product management. In
2012, PBL received 4 most valued awards for its published
accounts and reports and corporate governance viz.
CRISL reaffirmed long term rating of PBL to AA+ and short term
rating to ST-1 based on financials up to December 31, 2011.
RATING BY CRISL
Long Term
Surveillance Rating 2011
Surveillance Rating 2010
Outlook
Date of Declaration of rating
AA+
AA+
AWARDS AND ACCOLADES
SAFA Best Presented Annual Report Awards 2011 from

SAFA (South Asian Federation of Accountants) for Annual
Report-2011. Winner in Private Sector Banks category and
Winner- 1st Runner up in Overall category;
ICAB National Awards for Best Presented Annual Reports

2011 from ICAB (Institute of Chartered Accountants of
Bangladesh) for Annual Report 2011;
ICMAB Best Corporate Award 2012 from ICMAB (Institute

of Cost & Management Accountants of Bangladesh) for
Annual Report 2011;
Bizz 2012- Inspirational Company Award from WORLDCOB

(World Confederation of Business) in recognition of
consistent growth, corporate social responsibilities (CSR)
and use of technology.
DHL-The Daily Star Bangladesh Business Awards-2011 in

the category of Best Financial Institution.
Short Term
ST-1
ST-1
Stable
May 30, 2012
NETWORK
PBL has a large and well distributed network of branches in
Bangladesh. It has 113 branches and 17 SME branches covering
strategic financial centers. It has 3 Off-shore Banking Units at
different EPZs in Bangladesh. The bank has fully owned exchange
houses at Singapore and UK facilitating inward remittance to
Bangladesh. It has a fully owned finance company in Hong Kong.
It has active presence in capital market through Prime Bank
Investment Limited and Prime Bank Securities Limited.
EFFICIENT CAPITAL AND STRONG ASSET QUALITY
PBL has a strong capital base and capital adequacy stands at
12.64 percent of the risk weighted assets against the regulatory
requirement of 10 percent. The bank is also well positioned to
maintain capital under Basel-II.
OUR COMMITMENTS
PBL is committed to deliver value to its stakeholders. The bank will
continue to provide effective and competitive financials solutions and
services to its customers. It will continue to enhance the shareholders
value through consistent financial performance and efficient capital
management. PBL will foster a strong performance and learning
culture that allows the development and talents of its employees so
that they can effectively play the role of PBL Brand Ambassador.
18
Milestones
Memorandum and Articles of Association signed by the Sponsors
05.02.1995
Incorporation of the Company
12.02.1995
Certificate of Commencement of Business
12.02.1995
License issued by Bangladesh Bank
20.02.1995
License issued for opening the first Branch, Motijheel
08.04.1995
Formal launching of the Bank
17.04.1995
Commencement of business from the Motijheel Branch
17.04.1995
Commencement of Islamic banking business from IBB, Dilkusha
18.12.1995
Initial Public Offerings (IPO)

Publication of Prospectus
29.08.1999
Subscription Opened
09.09.1999
Subscription Closed
22.09.1999
Listed with Chittagong Stock Exchange Limited
15.11.1999
Listed with Dhaka Stock Exchange Limited
27.03.2000
Trading of Shares on Dhaka Stock Exchange Limited
29.03.2000
Trading of Shares on Chittagong Stock Exchange Limited
29.03.2000
Dividend declared in the 5th AGM (First after the IPO)
14.03.2000
Registered as Merchant Banker with the Securities and Exchange Commission
29.03.2001
License issued from the Bangladesh Bank as Primary Dealer
11.12.2003
Registered as Depository Participant of CDBL
29.03.2004
Trading of Shares started in Demat Form in Stock Exchanges
15.06.2004
Completion of 10 years of Service
17.04.2005
Agreement with Temenos for Core Banking Software Temenos T24
30.06.2005
Incorporation of Prime Exchange Co. Pte. Ltd., Singapore
06.01.2006
Prime Exchange Co. Pte. Ltd., Singapore formally started business
08.07.2006
Opening of first Off-shore Banking Unit at DEPZ, Savar, Dhaka
15.03.2007
Launching of ATM
11.03.2008
Launching of Internet Banking
01.08.2009
Opening of first SME Centre
04.08.2009
Recipient of SAFA Best Bank Award
05.12.2009
Incorporation of PBL Exchange (UK) Ltd.
19.11.2009
Obtained Permission for issuance of Subordinated Bond

for Tk 2,500 Million for Basel-II Compliance
31.12.2009
Incorporation of PBIL
28.04.2010
Incorporation of PBSL
29.04.2010
Obtained permission for issuance of Rights Share
25.05.2010
Launching of SMS Banking
25.08.2010
Ground breaking of Prime Tower
22.09.2010
Change of Face Value and Market Lot of Shares of PBL
06.01.2011
Launching of Phone Banking
02.08.2011
Commencement of business of PBL Finance (Hong Kong) Ltd.
01.09.2011
Launching of Mobile Banking
25.03.2012
Launching of Biometric Smart Card
20.05.2012
Board of Directors
Protecting Shareholders Value
Md. Shirajul Islam Mollah

Chairman
Mr. Md. Shirajul Islam Mollah, a Sponsor Director of

Prime Bank Limited was elected Chairman of the
Board of Directors in the 367th Meeting of the Board
held on August 24, 2011. He was Chairman of the
Executive Committee prior to his election as
Chairman. He was also the Chairman of the Executive
Committee during May 2003 to May 2004. A very
successful business personality, Mr. Md. Shirajul
Islam Mollah is the Managing Director of China-Bangla
Ceramic Industries Limited, Bengal Tiger Cement
Industries
Limited,
Bajnabo
Textile
Mills
Limited,United Shipping Lines Limited and Director of
Peoples Leasing & Financial Services Limited.
He is also one of the Sponsor Shareholders of
Peoples Leasing & Financial Services Limited. Widely
traveled, Mr. Mollah is involved with many social and
educational activities and earned recognitions from a
number of organizations. He is the founder of Bajnabo
Abul Faiz Mollah High School, Shibpur, Narsingdi. He
is a Member of Dhaka Stock Exchange Limited
(Trustee Securities Ltd.). He is the President of
Bangladesh
Ceramic
Wares
Manufacturers
Association. A philanthropic personality, Mr. Md.
Shirajul Islam Mollah is also the Chairman of Shirajul
Islam Mollah Samaj Seba Foundation.
M.A. Khaleque
Vice-Chairman
Mr. M. A. Khaleque is the founder and Sponsor Director of Prime Bank Limited. He
has been elected Vice Chairman of the Board in the 367th Meeting of the Board of
Directors held in August 24, 2011. During the last 25 years, he has set an enviable
standard by establishing high end institutions ranging from banks, non-banks, life
and general insurance in the country. Mr. M. A. Khaleques name has now become
synonymous with some of the finest institutions having high professional outlook
and vision in the nation. Spanning over a period of around 20 years, success came
as a matter of choice through Prime Finance & Investment Ltd, Fareast Islami Life
Insurance Company Ltd., Prime Insurance Ltd., Fareast Finance & Investment Ltd.,
PFI Securities Ltd., Fareast Stocks and Bonds Ltd., Prime Islami Securities Ltd.,
Prime Prudential Fund Ltd., Prime Financial Securities Ltd. some of which are
already market leaders in their respective fields. Having set epoch making
standards in the financial arena, he set his sight into the emerging information
technology, booming property sector and promising Agro-based sector of the
country and his dreams were fulfilled through promotion of GETCO Limited /
GETCO Agrovision Ltd., GETCO Telecommunications Ltd., HRC Technologies Ltd.,
Prime Property Holdings Limited and PFI Properties Ltd. He is a member of the
Board of Governors, Primeasia University. His social contribution came through his
foundation under the name and style of MAK Foundation through establishment of
a good number of educational institutions such as University, Degree College,
Technical College, Krishi College, High School, Girls High School, Kindergartens
and Madrasahs imparting quality education in the society. He is actively involved
with SEBA, a benevolent organization in Bangladesh. He is currently the Chairman
of Fareast Finance & Investment Limited, Fareast Stocks and Bonds Ltd., Prime
Property Holdings Ltd. and PFI Properties Ltd.
He is also a Member of the Audit Committee of the Board of Directors of Prime Bank
Limited.
Mr. Mizanur Rahman Bhuiyan is a renowned industrialist in Bangladesh. He

started business since 1987. Through his strong leadership & aptitude, he expanded
& diversified the business and formed the company as todays Meghna Group, one
of the renowned & largest business conglomerates in Bangladesh.
Presently Mr. Rahman is the Chairman of Meghna Group. The core business of
Meghna Group is to manufacture & export bicycle & components to Europe.
Meghna manufactures full range of bicycle & motorcycle tires & tubes and recently
started manufacturing of automobile tires. Meghna has also a steel tube
manufacturing unit that produce quality steel pipe for bicycle frame & steel furniture.
Mizanur Rahman Bhuiyan

Vice Chairman
Besides involvement in the bicycle industry, Meghna has a joint venture of Hanger
manufacturing unit with the renowned Mainetti of Italy. The group also has business
stake in a white cement manufacturing unit, a joint venture with eminent Sian Group of
Thailand. In the recent years, Meghna has started a new line of business of
manufacturing garments accessories; where fully automated corrugated carton factory
is already in operation and other related manufacturing units like button, poly bags,
printed & woven labels and tags, tapes & elastics, yarn & dyeing etc. are in the pipeline.
Meghna Group is very successful in the automotive sector in Bangladesh. Mehgna
is the sole distributor of prestigious German Brand BMW. KIA Motors from Korea is
also represented by the group in the country.
For its excellent performance & contribution to national economy Meghna Group has
been awarded many times by the Govt. & non govt. bodies. For the export
performance in the year 2008. Transworld Bicycle Co. Limited received the National
Export Trophy Gold and Meghna Bangladesh limited received National Export
Trophy Silver. Meghna was awarded with the Business Enterprise of the year
2009 in the Daily star DHL Bangladesh business award. In the year 2005 Meghna
received the BMW Best Facility in the region Award from BMW Asia Limited.
Mr. Mizanur Rahman is one of the Sponsor Directors of the best performing private
sector Bank Prime Bank Limited. Mr. Rahman was the Chairman of the Board of
Directors in the year 2003-2004.
Widely traveled Mr. Rahman is a member of Kurmitola Golf Club, Dhaka
Cantonment.
Board of Directors - Protecting Shareholders Value
Mafiz Ahmed Bhuiyan
Chairman, Executive Committee
Tanjil Chowdhury
Mr. Mafiz Ahmed Bhuiyan was elected Chairman, Executive Committee of the
Board of Directors of Prime Bank Limited in the 367th Meeting of the Board. A
Sponsor Director, Mr. Bhuiyan was Vice Chairman of the Board prior to his present
position. Mr. Bhuiyan is an entrepreneur and has the distinction of making
substantial contribution in the Backward Linkage Industry setup in the RMG sector
in its early years. He also pioneered in setting up joint-venture projects in the country
with the collaboration of the developed countries like Taiwan and Korea. Currently,
he is Director of Australian International School (International Holdings Ltd), Life
Member & Vice Chairman of Eastern University Foundation (Eastern University),
Life Member of South East Foundation (Southeast University) and Managing
Director, Shepherd World Trade Ltd. He is also representing Shepherd World Trade
Limited to the Board of Citizen Securities & Investment Limited as Chairman.
Besides, he is Life Member of numerous educational and social welfare
organizations. A widely traveled person, Mr. Bhuiyan is also a keen lover of Games
& Sports and actively participates in the Golfing events.
Mr. Tanjil Chowdhury is the Director of Prime Bank Limited and currently serves as
the Vice Chairman of the Executive Committee. He is the Managing Director of East
Coast Group of companies, a diversified conglomerate with primary focus on Oil &
Energy. Mr. Chowdhury is the Vice President of Bangladesh Merchant Bankers
Association (BMBA) and President of Solar Module Manufacturers Association of
Bangladesh (SMMAB). He is also Chairman of Prime Exchange Singapore Pte Ltd,
the banks remittance arm in Singapore. He is the Secretary General of Prime Bank
Cricket Club, an initiative of Prime Bank Foundation (PBF). He is a guest lecturer at
American International University Bangladesh (AIUB), Faculty of Business
Administration. His lecture topics include Financial Derivatives and Investment
Management. Mr. Chowdhury did his BA (Hons) in Accounting and Finance and
went on to complete MSc. in International Management (Finance), from Kings
College London, University of London. Mr. Chowdhury is an active member of BBC
Film Society. He is also a keen golfer and his current handicap is 21.
Vice-Chairman, Executive Committee
Prof. Ainun Nishat, a renowned personality in the arena of Water Management,

Climate Change, Environment and Disaster Management was appointed Depositor
Director of Prime Bank Limited on 19th March 2009. Presently, he is Vice Chancellor
of BRAC University, Dhaka. He obtained Ph.D. in Civil Engineering from University
of Strathclyde, Glasgow, U.K. He is a graduate of Bangladesh University of
Engineering and Technology (BUET) in Civil Engineering. Earlier in his career he
was Professor, Dept. of Water Resources Engineering and Director, Institute of
Water and Flood Modeling BUET, Dhaka, and Country Representative of
International Union for Conservation of Nature and Natural Resources. A widely
traveled person Prof. Nishat has authored many books and articles at home and
abroad.
Prof. Ainun Nishat
Chairman, Audit Committee
Mrs. Marina Yasmin Chowdhury is a Sponsor Director and former Vice

Chairperson of Prime Bank Limited. She is the director of East Coast Group (ECG),
a diversified conglomerate that has been engaged in Oil and Energy business for
last thirty years. She is also the Chairman of Clean Fuel Filling Stations Limited and
Parkesine Products Limited, both of which are subsidiaries of ECG.
Mrs. Chowdhury is also former-director of Green Delta Insurance Company Limited,
one of the leading general insurance companies of Bangladesh.
Outside of business life Mrs. Marina Y. Chowdhury is deeply engaged in Social
Welfare programs conducted through East Coast Groups Foundation and is also
personally involved in other philanthropic and charitable causes such as accessible
education and medical treatment for the underprivileged.
Marina Yasmin Chowdhury
Director
In her leisure time she enjoys working out, shopping and cooking variety of culinary
dishes for her family.
Mrs. Nazma Haque is one of the Sponsor Directors of Prime Insurance Company
Limited. Mrs. Nazma Haque, Graduate in Economics, under Dhaka University, is a
successful business personality as well. She is Executive Director of Bangla Trac
Limited, Chairman of Anirban Enterprise Limited and also Director of Asian Gate
Limited, ACORN Limited And THANE Technology Limited.
Outside business life, Mrs. Nazma Haque is an active social worker and deeply
engaged in Social Welfare programs in Rajshahi. She is one of the founders of
Bangla Trac Cricket Academy, located in Rajshahi and engaged in training
underprivileged boys of the locality.
She is also a Member of the Audit Committee of the Board of Directors of Prime
Bank Limited.
Nazma Haque
Director
Quazi Sirazul Islam is a Sponsor Director & Former Chairman of Prime Bank
Limited. He took part in countrys liberation war in 1971 and later elected as Member
of Parliament in 1996 and 2001. Mr. Islam is the Managing Director of Amin
Jewelers Limited, one of the famous Jewelry House in the country. He is the Chief
Advisor of Sonar Bangla Insurance Limited. He is also the Member of Gulshan Club
Limited. Mr. Islam is the Chairman of City Hospital (Burn Hospital), which is the only
Private Sector Hospital of this kind in Bangladesh. He is a Member of the Board of
Governors of Peoples University of Bangladesh. A philanthropist by nature Mr.
Islam was awarded Kabi Jasimuddin Gold Medal, Maulana Akram Khan Gold
Medal, Sufi Motahar Hossain Gold Medal and Atish Dipankar Gold Medal for
remarkable contribution in education. He was also awarded MJF (Melvin Jones
Fellow) Medal by the Lions International Foundation for his contribution to the
Society.
Quazi Sirazul Islam
Director
He is also a Member of the Executive Committee of the Board of Directors of Prime

Bank Limited.

Mrs Salma Huq is one of the Sponsor Directors and former Chairman of the
Executive Committee of Prime Bank Ltd. She is a Director of GQ Group since 1986,
which is engaged in manufacturing pen, plastic furniture, disposable plastic wares,
pp woven sacks, mosquito coils and snack foods. GQ Group is also one of the
sponsors of Prime Insurance Co Ltd, Prime Finance and Investment Ltd, PFI
Securities Ltd and Prime Capital Management Ltd.
She is actively engaged in philanthropic activities mainly providing scholarship to
needy students and providing free medicine and arranging treatment to poor
patients. She is one of the founders of Qazi Saleema Huq Womens College and
Qazi Saleema Huq Girls High School.
Salma Huq
She is also a Member of the Executive Committee of the Board of Directors of Prime
Bank Limited.
Director
Mrs. Nasim Anwar Hossain is one of the Sponsor Directors of Prime Bank Limited.
Mrs. Hossain, Masters in Political Science from Dhaka University, is a successful
business personality as well. She is Director of Prime Cement Ltd., Lubricants Asia
Ltd., Bengal Tiger Cement Industries Limited.
Mrs. Hossain is an active social worker and takes keen interest in different
benevolent and philanthropic activities.
Bank Limited.
Nasim Anwar Hossain

Director
Khandker Mohammad Khaled

Director
Khandker Mohammad Khaled, former Chairman and present Director of Prime

Bank Limited is a BUET graduate in Mechanical Engineering. After graduation he
joined the then Water & Power Development Authority (WAPDA), now Bangladesh
Water Development Board (BWDB). After having served BWDB for thirteen years,
he started his own business in 1975 establishing Greenland Engineers & Tractors
Company Limited (GETCO) along with few associates which by now has attained an
enviable position among the contemporary business houses in Bangladesh. He is
currently Chairman & Managing Director of GETCO Telecommunications Limited,
GETCO Agro Vision Limited and GETCO Limited. He is Vice- Chairman and
Member, Board of Governor, Prime Asia University. Besides, he is associated with
numerous Chamber Bodies and Societies in different capacities prominent among
which are Institute of Engineers, Bangladesh, National Heart Foundation of
Bangladesh, Diabetic Association of Bangladesh, AMCHAM, Bangladesh,
Bangladesh Railway Spares and Accessories Suppliers Association, International
WHOs WHO Historical Society and 62-Engineers Club. He is currently the
President of Canada-Bangladesh Chamber of Commerce and Industries
(CANCHAM). A very widely traveled person, Mr. Khaled is an amiable personality
having track record of making contributions in the social and educational
development activities of the country.
Limited.
Mrs. Muslima Shirin is the Chairperson of MAWSONS Ltd., engaged in business.

She is also engaged in real estate business. She represents in the Board of Prime
Finance & Investment Limited on behalf of MAWSONS Ltd.
Bank Limited.
Muslima Shirin
Director
Mr. Md. Nader Khan is one of the Sponsor Directors and former Chairman of Prime
Bank Limited. He has already proved himself as a very prominent business
entrepreneur by setting many high-end establishments in different business sectors.
He is playing important roles in different companies such as:
Managing Director:
Pedrollo nk Limited
Pragati Corporation
Polyexprint Ltd.
Polyex Laminate Ltd.,
Halda Valley Tea Co. Ltd.
Polytape Ltd.
PNL Water Management Ltd.
Md. Nader Khan
Director
Chairman:
Artisan Ceramics Ltd.
New Vision Information Technology Ltd.
Director:
Prime Bank Limited
Prime Finance & Investment Ltd.
National Life Insurance Co. Ltd.
Prime Insurance Ltd.
The Consolidated Tea and Lands Company (BD)
Hill Plantation Ltd.
Baraoora (Sylhet) Tea Company Ltd.
He completed his Graduation from Chittagong College under Dhaka University in
1967. One of his business concern, Pedrollo nk Limited, is the market leader in
water pump Business in Bangladesh since 1985. Mr. Md. Nader Khan was honored
with Prime Ministers Award 2010 for his contribution in tree plantation.
As a goodhearted personality, Mr. Nader Khan is actively involved in diverse CSR
activities. He is the Chairman of Lion Mukhlesur Rahman Foundation, Lion Mukhlesur
Rahman Plastic Surgery Hospital, Zero Club Foot Project, Founder of Cider
International School, Ex- Governor (2000-2001) of Lions Club International- District
315 B4 Bangladesh, to mention a few. He is the trustee Member of Independent
University of Bangladesh (IUB) & Chittagong Independent University (CIU).
Mr. Khan believes hard work and business integrity are the keys to success. He
feels a leader with vision is necessary to give proper directions for our economic
development. He is now desirous for contributing in national development through
expanding business to quality education service and tea plantation which sector are
yet to be developed in our country.

Mr. Nafis Sikder is the Managing Director of Palmal Group which was founded by
his father late Nurul Haque Sikder, a prominent business personality then and
among the pioneers in RMG sector. After completion of O and A level, Mr. Sikder
went to Washington University, Saint Louis, Missouri, USA and obtained BS in
Business Administration with distinction. With his ingenuity and expertise in
operations, strategic management & marketing skills, expanded the Groups
business in all the spheres of RMG. The group at present is the most prolific and
trusted suppliers of Apparels to American and European buyers. Mr. Sikder is an
avid philanthropist and actively contributes in the promotion and expansion of
education through establishing Schools and Colleges. He is also associated with
numerous socio welfare and charitable organizations.
Nafis Sikder
Director
Mr. Imran Khan is one of the Directors of Pedrollo nk Limited market leader of
PEDROLLO Brand Water pumps of Italy in Bangladesh. A promising business
personality of the country, he is also Director of PNL Holding Limited, PNL Water
Management Limited, Polyexprint Ltd, Polyexlaminate Ltd, Halda Valley Tea Co.
Ltd, Hill Plantation Limited.
An Ex-Cadet of Fauzdarhat Cadet College, Chittagong, Mr. Khan completed his
graduation in BBA (Marketing) from North South University, Dhaka.
Mr. Khan is actively associated with various social activities. He is a member of the
Governing body of Lion Mukhlesur Rahman Foundation a renowned Charitable
organization, Chittagong.
Imran Khan
He is also a Member of the Executive Committee of the Board of Directors of Prime

Bank Limited.
Director
A successful businessman, Mr. Md. Shahadat Hossain is a Sponsor Director of

Prime Bank Limited. He is a past Vice Chairman of the Board of Directors also. His
business entity consists of VIP Shahadat Poultry & Hatchery, VIP Shahadat Cold
Storage and Rangpur Agro Industries.
An active social worker, Mr. Hossain is associated with different social welfare
organizations dedicated to the services of general mass.
Md. Shahadat Hossain

Director
Prof. Dr. Mohammed Aslam Bhuiyan

Director
Prof. Dr. Mohammed Aslam Bhuiyan, Professor of Sociology, University of

Chittagong is a renowned educationist and was appointed an Independent Director
of the Bank in April 2009. He obtained his MS in Sociology on Rural Development at
the Moscow University, erstwhile USSR in 1976. He was also educated in the USA
& Germany. He did his Ph.D from Bombay University under the fellowship of Indian
Council of Social Science Research (ICSSR). Mr. Bhuiyan is former Vice Chancellor
of The Peoples University of Bangladesh and Chairman of the Department of
Sociology, University of Chittagong. He was also Director CUCSU, Provost
Shamsun Nahar Hall, Registrar (In charge) of Chittagong University. Presently Dr.
Bhuiyan is a Senate Member of Chittagong and Dhaka University, Syndicate
Member of the Moulana Bhashani University of Science & Technology and member,
Presidium, Bangladesh India Friendship Society. He is also Member of Governing
Council of Bangladesh Climate Change Resilience Fund (BCCRF), Ministry of
Environment and Forest. Prof. Bhuiyan wrote more than 100 academic papers
published in National & Foreign Journals including many leading Newspapers.
Limited.
Mr. Manzur Murshed, a retired govt. official, appointed Depositor Director of Prime
Bank Limited on 19th March 2009 and reappointed in 2012. He graduated in
Engineering (Electrical) in 1961 from the University of Dhaka and MA (Public Admin)
from American University, Beirut. He started his career in 1961 as Assistant

Engineer in East Pakistan Water and Power Development Authority (EPWAPDA)
and retired from services as member, Planning & Development in December 1995.
He was also Director of Eastern Cables Ltd. He is a Fellow of IEB, Member of Dhaka
Club and Kurmitola Golf Club. He at present runs a consultancy firm offering
expertise services for the development of the Power Sector in the country.
Manzur Murshed
Director
Mr. Md. Ehsan Khasru joined as Managing Director of Prime Bank Limited on 15
September, 2011. Prior to joining Prime Bank Limited, he was Additional Managing
Director of The City Bank Ltd.
In his long 30 years banking career, he has held various responsible management
positions in Credit Risk Management, Risk Management, Credit Administration and
Relationship Management.
Mr. Khasru started his illustrious banking career in 1983 as a Probationary Officer in
National Bank Ltd. In 1985, he joined National Credit and Commerce Bank Ltd. After
serving eight years, in 1992 he moved to American Express Bank in the Marketing
Manager (Relationship) position in the Business & Corporate Banking Division and
served there till 1999. Later on, in 2000, he went abroad and worked for Royal Bank
of Canada and Bank of Montreal as a Senior Manager (Relationship) and Financial
Services Manager respectively till 2007.
Md. Ehsan Khasru

Managing Director
Mr. Khasru returned to Bangladesh in 2007 and joined Eastern Bank Limited as
Head of Credit Risk Management. Subsequently, in 2008, he joined the City Bank
Ltd. as SEVP and Head of Credit Risk Management where he received elevation
twice in three years. During this time he was also promoted to the rank of Additional
Managing Director for his contribution as the Chief Risk Officer of the bank.
An MBA in Marketing from the Institute of Business Administration (IBA), University
of Dhaka in 1982, Mr.Khasru achieved his Bachelor (Hons) in Economics from
Dhaka University in 1979.

Group Chairmans Review
Managing Director & CEOs Roundup
Directors Report on Financial Statements
and Internal Control
Report of the Audit Committee
Report of the Shariah Supervisory Committee
CEO/CFOs Declaration to the Board
Corporate Organogram
Management Discussion and Analysis
Risk Management
Report on Risk Management by
Chief Risk Officer
Market Discipline
Disclosures on Risk Based Capital (Basel-II)

Executive Committee
Board of Directors
Mr. Md. Shirajul Islam Mollah
Chairman
Mr. M.A. Khaleque
Vice Chairman
Mr. Mizanur Rahman Bhuiyan
Vice Chairman
Mr. Md. Nader Khan
Director
Khandker Mohammed Khaled
Director
Quazi Sirazul Islam
Director
Mr. Mafiz Ahmed Bhuiyan
Director
Mr. Md. Shahadat Hossain
Director
Mrs. Marina Yasmin Chowdhury
Director
Mrs. Nazma Haque
Director
Mrs. Nasim Anwar Hossain
Director
Mrs. Salma Huq
Director
Mrs. Muslima Shirin
Director
Mr. Nafis Sikder
Director
Mr. Tanjil Chowdhury

Mr. Imran Khan
Director
Prof. Ainun Nishat
Mr. Manzur Murshed
Mr. Md. Ehsan Khasru
Director
Chairman
Vice Chairman
Quazi Sirazul Islam
Member
Mrs. Muslima Shirin
Member
Mrs. Salma Huq
Member
Member
Mr. Imran Khan
Member
Audit Committee
Prof. Ainun Nishat
Chairman
Mr. M.A. Khaleque
Member

Mrs. Nazma Haque
Member
Member
Member
Independent Director
Independent / Depositor Director
Independent / Depositor Director

Managing Director
Advisor
Mr. Ziaul Hasan Siddiqui
Shariah Supervisory Committee

Prof. Maolana Mohammad Salauddin
Prof. Maolana Mohammad Shahidul Islam

Prof. Dr. Shamsher Ali
Mr. M. Azizul Huq
Prof. Dr. Muhammad Abdur Rashid
Maolana Shah Mohammad Wali Ullah

Mr. Muhammad Abdul Wahhab

Mr. Nasiruddin Ahmed
Chairman
Member
Member
Member
Member
Member
Member
Member
Member
Member Secretary
Group Chairmans Message
In the backdrop of the two gigantic

developments where many moderate
sized banks found pushed to the walls

and the stronger ones struggled, Prime
Bank stood apart due to its strong
fundamentals and prudent management

duly supported by timely & appropriate
policy decision.
While I take up the pen to communicate with the valued

patrons and stakeholders about the progress of the bank
during the past year-2012, I cannot restrain myself from
starting with an optimistic note. Yes, Bangladesh economy
has been acclaimed as STAR economy by the UN experts
as it has continued to grow at an average rate of 6-7
percent compared to diminishing trend of many developed
countries. Despite the global financial challenges varying
from crisis, volatility, uncertainties to various risks,
developing country like Bangladesh only requires prudent
economic management to attain the projected growth. I am
also taking inspiration on such positive note and hope
Prime Bank will likewise apply its dexterous management
skills to ward of the challenges and continue Sailing
Through Success in the year - 2013.
Going back to 2012, our shareholders would recall that the
banking industry from the beginning of third quarter
onwards, started stepping into a situation of apprehension
with the promulgation of Provisioning & Asset
Classification policy of the banking business. Though the
contents of the policy apparently suggest a synchronization
effort on the part of the Regulators with the international
standard best practices but as expected, the entire industry
was jolt under the compulsion to shift gears and in the
process veer away from the projections set at the
beginning of the year. Then emerged the tabloid story
running almost every day in the national dailies with regard
to Inland documentary bill financing by a leading
commercial bank (state owned ) which not only sent
shocking waves across the banking industry but also
dented the pride of many.
In the backdrop of the two gigantic developments where
many moderate sized banks found pushed to the walls and
the stronger ones struggled, Prime Bank stood apart due to
its strong fundamentals and prudent management duly
supported by timely & appropriate policy decision.
Under the circumstances, our valued stake-holders should
have reasons to rejuvenate as their bank stood the test of
time and moved as usual towards the projected
performance targets.
In light of the developments noted above, I take the
pleasure to highlight the following aspects under reference
of the year 2012 on the firm belief that they will not only be
satisfying but reassuring as well.
Performance- 2012:
Against the backdrops stated above, the bank succeeded
in maintaining double digit dividend for 2012.
At the end of the year banks Deposit & Advance stood at
Tk 181,962 million and Tk 165,042 million which is about
14 percent and 16 percent respectively higher than the
year end position of 2011.
Return on Equity (ROE) stood at 13.43 percent and the
Earning per Share (EPS) was Tk 2.89 which is considered
commendable as against the industry average at the
moment.
Capital Adequacy of the bank stood at 12.64 percent
against the regulatory requirement of 10.00 percent and it
is worth mentioning here that during the entire 2012 bank
made numerous Stress Testing exercises to reaffirm its

strong footing on the issue assuming acute to most
distressing situations likely to be encountered. The process
also included implementation of the project of Rating of the
Corporate who also cooperated considering the win-win
situation.
The ratio of non-performing loan to total loans stood at 3.74
percent, though appears slightly higher compared to yester
years but its obviously low compared to many
contemporaries and particularly upon compliance with the
prevailing stringent classification policies.
Strategic Priorities & Actions Plan -2012-2014:
To survive the test of time and competition, its always
important to reassess ones position with regard to current
and anticipated changes and accordingly determine
priorities and work out appropriate strategies to be on
course towards the projections. As per advice of the Board,
the Management undertook the gigantic leap in this direction
and presented a three year Actions plan i.e. 2012-2014
which also included the concept of Dream Banking(Bank
within Bank) - a unique but orthodox Unit banking concept
which appears taking shape in the near future.
Our shareholders shall be pleased to learn that the actions
plan of the bank over the next three years shall be focused
on the following priorities to mention few, which will
eventually lead to improvement & consolidation of the
current KPIs.
Maintain strong capital base;
Continuation of diversification of credit portfolio in

corporate exposure, emphasize on retail, SME and
agricultural loan;
Improvement of deposit mix by maintaining efficient

deposit mix, increase share of low cost and no cost
deposit in total deposit, increase non-funded
business;
Maintain adequate level of liquidity through minimizing

asset-liability mismatch and recovery of past due
loans;
Diversification of products and services by introducing

IT based innovative products and alternate delivery
channels;
Increase share of inward remittance;
Increase non-funded (non-interest fee based) income;
Extend banking services to un-banked and under

banked people for inclusive growth;
Innovative approach in dealing with complex and

large transactions / fund requirements with strategic
alliance;
Improve internal governance through strengthening

good corporate cultures, motivation, training and
supervision as per KPIs in all levels of management;
Strengthening internal control and monitoring;
Conduct BPR (Business Process Re-engineering) in
Group Chairmans Message
different functional areas to improve efficiency and

bring in required structural change;
Improvement of IT infrastructure in order to develop

new IT based products and services;
Integrated marketing effort

customer-orientated culture;
Development in Human Resources Management

System to motivate and retain the Human Resources
and transform Human Resources to Human Capital
through proper training in every aspects of working
area;
Cost optimization at all levels of operation by ensuring

budgetary control;
Expansion of activities related to Corporate Social

Responsibility and Green Banking.
by
creating
Technology-Enabler & Differentiator:

Among the various steps under strategic priorities, bank
has chalked out technology as one of the pressing and vital
one. There is a strong realization that spending on
widespread technology is an Investment to support growth
and new business development. In todays intense
competition where every bank is trying to capture the
customers mind by offering technology based solutions,
bank cannot lag behind and as such its determined to
prove that technology is not only an enabler but a
differentiator as well.
Pursuing the belief, bank has already introduced biometric
smart card money transfer services under the brand name
Prime Cash which will help a long way in the inclusion of
unbanked people. Banks internet services under Altitude
has made a remarkable headway and barring some
promotional back up, is likely to be most sought after
services for all customers in the nearest future. Besides,
the centralization process under the guidance of renowned
KPMG is progressing fast to engulf entire back office
movements and in the process remove the ever looming
worries for the management.
In addition, bank has finally decided to procure exclusive
Islamic software to support its Islamic banking transactions
complying with the Shariah principles. Efforts are also
there to up-grade the existing European banking software
T-24 and finally integrate it with the procured Islamic
module under an API arrangement.
Corporate Governance:
Our shareholders are well aware that BSEC through a
promulgation on the issue of Corporate Governance
inserted few new conditions for compliance by the listed
companies within 31st December 2012. The Board
observed that the inclusion of new conditions appeared
reinforcing the objectives of Corporate Governance for the
greater interest of all sections of stakeholders of the public
listed companies. Implementation of the conditions was
expected to boost the governance culture and make

companies more transparent by allowing bigger
representation of the minorities in the Board of Directors of
the Holding Companies. New conditions also appeared
directed towards taking more responsibilities and
supervision on the affairs of the Subsidiaries by the Holding
Companies.
Prime Bank being a practicing company of good corporate
governance culture and having met most of the conditions
in normal course, therefore, resolved to comply with the
new set of conditions of the newly promulgated notification
by adopting resolutions and formalizing the roles &
responsibilities of the important position in the company as
required under it. The Board while taking the decision took
into account the issue of precedence to be followed while
complying with the directives of the different regulators
based on the nature of its entity.
Therefore, on the subject ,our shareholders can rest
assured that majority of the conditions of the notification
has been met and in particular the Audit Committee, a vital
sub-committee of the Board assigned with the
responsibility of oversight has been functioning strictly in
compliance with the recent directives on the corporate
governance of BSEC.
Community Services (CSR):
In this regard we may recall the famous saying of Abraham
Lincoln about the Democracy; similarly, we can also echo
that Banking is all about the society. Its the society we do
banking about and its the society to which we belong.
Therefore, its our moral responsibility to contribute for the
progress and welfare of the society.
Prime Bank ever since its inception has been alert about its
commitment to the Society and with each passing day,
involvement has been increasing. The bank has been
performing the responsibilities in two pronged manner.
One, the Bank itself has been engaging in day to day
issues like extending financial support to the needy, non
profitable organizations, educational institutions, Hospitals,
temporary medical services, cultural activities, games &
sports besides sponsoring many other events of
significance.
While the Foundation has been more
organized in its approach, taking up long term projects and
also conducting educational support programs on regular
basis. Some of the establishments like Prime Bank Eye
Hospital and Prime Campus - an English medium school at
the moment bear the testimony of the efforts. In addition,
the Foundation has a large project of significance in hand
like setting up a Medical College, Nursing Training College
and an international standard auditorium on huge premises
acquired for the purpose. Bank has been facilitating the
Foundation in this regard by setting aside a portion of its
profit before tax under obligation towards the society.
From 2011 onwards, bank has been fielding its own Cricket
Team in the Premiere League to popularize the game and
in 2012 it extended by participating in a franchised based
Cricket league competition. The main objective about
entering the Cricket arena is about setting up a full fledged
Cricket Academy to nurture existing talents to take up

national assignment in future.
In addition, the bank sponsored BPL-T20 League
competition to provide an impetus to the game. Further, to
enable regaining the past glory of the once number one
game of the country Foot-Ball, the bank decided to sponsor
the Leagues of District Football Associations in the year
2012-13.
On the business front, Bank has been contributing to the
society by extending credit facilities on softer terms to the
Women entrepreneur, SME Sector & environment friendly
projects under Green Banking policy of the bank.
Challenges & Reality -2013 :
While the economy has been growing satisfactorily in the
band of 6-7 percent but political instability and poor
infrastructure coupled with insufficient power supply
remains a big hurdle in the implementation of economic
reforms. Even though 50 percent of the GDP is generated
from the service sector and RMG export has stood the test
of time during the global financial crisis and recession, we
have reasons to draw inspiration in these regards. The
bank has worked to instill the spirit of combating
challenges, accordingly capacity building has been done,
as such its my firm belief that the skilled workforce of the
bank will be equipped enough to ward off any nature of
crisis or obstacle likely to impede its progress.
Yet, some of the challenges the bank foresees in the near
future are:
Sudden Policy decision like increase in CRR and SLR
and reduction in repo.
Investments in large infrastructure projects and the time
gap of return
Inflationary pressure.
Less flow of foreign investment.
High Government borrowings.
Note of appreciation:
I had intended to include more areas of operation in this
report but as they have been attended in different sections
of the Annual Report, I leave it to you to peruse them.
Therefore, before concluding I like to acknowledge and
thank a number of people and organization for contributing
towards our success.
First of all, I like to extend sincerest thanks to our valued
shareholders for their continuous support and inspiration.
My deepest gratitude goes to our Regulators specially the
Bangladesh Bank for their guidance and advice without
which bank might not have achieved consistent level of
growth matching the key milestones of performance.
I also like to thank our external auditors for carrying out the
auditing task professionally and advising us on the
compliance issues relating to International and Bangladesh
Accounting Standards. Continuous appreciation of our
format/presentation of the Financial Statements at home &
aboard bears the testimony of the compliance status.
I also like to thank all my colleagues in the Board of
Directors, the Management along with entire workforce of
the bank particularly the team associated with the hard
work of bringing out this voluminous Annual Report of the
year- 2012.
Finally, I like to do a justice by recalling our dear sponsor
colleague, Md.Abul Quashem who died premature in a
tragic road accident in June 2012. He was young and a
great sole inclined to volunteer for the cause of the bank.
His sudden departure shall be sadly missed, we, as such
acknowledge with deep appreciation and gratitude his
contributions for the bank with the sincerest hope that his
innocent sole shall rest in heavenly peace. Amin!
With the hope that our sailing through success shall
continue in the year 2013 as well.
High prices of the property- as deterrent to industrial

growth
Banks Recovery of NPL particularly the investments of
the Merchant Bank.
High Interest rate and reduction in repayment capacity
of the customers in general.

Chairman
Managing Director and CEOs Round up
We continue to grow in size, deliver
superior service, translate greater profit

for the stakeholders, while our aim is to
build the bank as an institution of

Financial Excellence.
It is my pleasure to present your Banks phenomenal

progress and achievements of 2012 and highlight the
strategic priorities to steer the Banks journey towards
excellence. Prime Bank Limited (PBL), established to
promote progress and development at micro level and
macro level through delivering full-fledged financial
services, has again proved that it is the best-positioned
Bank in the country to harness economic trends and deliver
value to our clients and stakeholders. This has been
possible mostly with our customers unshakable trust and
confidence in the Bank.
Economic Scenario
A stable, healthy development of the economy is
fundamental requirement for a Banks development, and
the sound development of a Bank cannot take place when
it is not serving a healthy, growing real economy. On a
global perspective, the economy showed its varying colors
with the European sovereign debt crisis, weak financial
performance of EU countries, high unemployment rate in
the developing countries, avoidance of fiscal cliff to avert
recession in USA etc. However, Bangladesh economy
showed its resilience amidst global downturn registering
6.32 percent GDP growth against 5.30 percent GDP
growth for developing countries. Also, controlling point to
point inflation to a single digit has been impressive with
control of non-food inflation. Remittance inflow has been
impressive with more than $12.17 billion of expatriates.
However, the economy could not avoid the net effect in
sluggish growth in exports partly due to Euro zone financial
crisis coupled with the European Union's single-step GSP
facility to Bangladesh's competitors. As a result, Export
earnings marked a rise of only 5.93 percent in 2011-12
against the Governments target of 15.6 percent for the
period.
Prime Banks Financial Performance
PBL has proactively responded to changes in
macro-environment and regulatory requirements and
excelled in all banking performance parameters. As a
process of effectively serving the development of the real
economy, we expanded new markets, reduced loan
concentration risk, improved credit operation quality and
efficiency on the basis of sustainable development.
Despite challenges the Bank continued to grow in its
operating line and achieved a growth of 15 percent. The
prudent management of assets and liabilities contributed in
achieving the growth.
Prudent Balance Sheet Management
Your Bank has shown its proficiency in managing fund of
valued customers, shareholders and patrons by
transforming sound financial results with booking a net
profit before Tax of Tk 5.34 billion in 2012 with an
impressive return on equity of 13.53 percent. Profit after
Tax stood at Tk 2.70 billion. The profit has been achieved
by adhering to the challenging loan provisioning
requirement of the Central Bank. The total balance sheet of
the Bank stood at Tk 474 billion, equivalent to USD 5.93
billion while the Bank maintained an impressive capital
adequacy of 12.73 percent (12.64 percent on consolidated
basis), well above the stipulated rate of 10.00 percent. The

ratio of non-performing assets to total assets was at a
commendable 3.83 percent (3.74 percent on consolidated
basis), which is lower than the industry average. Foreign
Trade Business grew by 1 percent during the year while
remittance and guarantee business showed growth of 15
percent and 6 percent respectively.
Asset and Liability
Prime Bank maintained its market leader position in asset
and liability among the conventional private commercial
banks. Deposit of the Bank increased by Tk 22.24 billion
during 2012 with an impressive growth rate of 14 percent.
Loans and advances have grown by 16 percent during the
year. The Bank has efficiently maintained a well diversified
Loans & Advances portfolio. Retail deposit has been
mobilized by providing competitive and superior products
while corporate deposit has been collected through
corporate deposit campaign. Thus, high cost of fund was
been managed with adequate focus on no and low cost
fund. Thus, sector wise the Bank maintained optimum
exposure with due concentration on SME and Retail
assets. The Bank adequately diversified its investment
through project finance, SME and Retail. Funds under
Corporate, SME and Retail stood at Tk 134.70 billion,
12.23 billion and 11.30 billion respectively.
Efficient Deposit Base
The Bank always stressed on maintaining efficient deposit
mix. The deposits of the Bank grew by 14 percent in 2012.
Customer deposits of the bank grew by 15 percent. The
growth was supported by branch network, innovative IT
based products and superior services along with liability
campaigns carried throughout the year. Low and no cost
deposits grew by 12 percent. As a result, the Interest cost
of deposit was restricted to 8.75 percent as against 8.15
percent of the previous year despite increase in rates of
high cost term deposits fueled by the liquidity position in the
market. As a stable funding base, scheme deposits
continued to rise resulting to a growth of 20 percent.
Customer Focus
Customers have been the forefront and driving force
behind the Banks mission of being a bank with a
difference. Exploring the unmet financial need of the
customers, assessing their finance requirement in
expanding and running their business smoothly, translating
their needs into services and satisfying their demands have
been the driving force. As a part of this customer endearing
strategy, the Bank continuously monitored the
performance of the products and services, and came up
with a number of innovative products and services to
satisfy the need of the customers and deliver superior
value. The Bank pursued the policy of service excellence in
ensuring superior customer service. Focusing on core
customer management skills, service delivery speed and
outstanding branch environment have shown greater
customer satisfaction and increased market reputation
according to mystery shopping survey.
Risk Management
Organizational and Structural Change
Risk management has been embedded as a core element

for mitigating uncertainties and assessing risk.This has
strengthened
consolidated
risk
management,
off-balance-sheet risk management, and improved our
technical capacity for the management of credit, market,
liquidity and operational risks. All these measures have
kept our asset quality stable and risks under control against
a backdrop of a complicated, difficult environment. To
strengthen the fulfillment of Basel-II accord, the Banks
Risk Management Division undertaken Stress tests as per
Bangladesh Banks guidelines to assess the capacity of the
Bank in unanticipated crises and management response to
manage the crises.
In 2012, the Bank has introduced dynamic organizational

development programs to streamline organizational
operational processes and procedures. Business
processes were upgraded or optimized on a customer
experience-oriented basis towards the objective of
increased efficiency, which greatly enhanced our collective
operation capability and back-office support capacity. In
the face of stricter regulatory capital requirements, we have
accelerated the implementation of our strategic
transformation from capital-intensive to capital-efficient
activities. Many divisions/units of head office have been
centralized to streamline the back office support for the
branches. All these initiatives improved organizational
efficiency contributing to prompt decision making, better
monitoring,
superior
customer
service,
higher
accountability and transparency.
Contribution to Remittance
Remittance has been playing a crucial role in economic
development of the country and your Bank has taken a
number of initiatives to take advantage of the global trend
in continuous growth of remittance flow towards the
developing countries. PBL has its foothold through its
correspondent network globally and at home. Prime
Exchange Co. Pte Ltd., Singapore and Prime Exchange
(UK) Ltd. operating have channeled remittance of foreign
expatriates. The Bank has signed agreements with
different overseas banks to facilitate collection of
remittance. Overall remittance increased by Tk 5.55 billion
registering a growth of 15 percent over the previous year.
Brand & Brand Reputation
The Banks phenomenal performance has been reflected
not only in its financial performance but with honors and
awards on local and global fronts. The Bank received the
Bizz 2012- Inspirational Company Award from World
Confederation of Businesses (WORLDCOB) at a program
held in Barcelona, Spain. Among other notable
international awards, Prime Bank Limited received the
Best Bank Award from The Institute of Chartered
Accountants of Bangladesh (ICAB) eight times in a row on
the basis of evaluation of the Presented Accounts and
Annual Reports of 2011 in the Private Banking Category.
The Bank received the award of the Strongest Bank in the
Country at the Strong Rated Bank Award 2012 in
recognition to its efficient asset management. Furthermore,
the Bank proved its business sustainability by winning "The
Daily Star-DHL Bangladesh Business Award-2011" in the
category of Best Financial Institution. Other awards that
the Bank has achieved over the years are International
Star for Leadership in Quality (ISLQ) Award in the Gold
category by the Business Initiative Directions (BID) in
Paris, France, the prestigious SAFA (South Asian
Federation of Accountants) Award on the basis of the
evaluation of annual report, Best Corporate Award for 2
consecutive times. These awards demonstrate the Banks
transparency in its presented accounts, strict adherence to
regulations and disclosure of corporate governance
practices in the Banking Sector of Bangladesh.
Card Business and Alternative Delivery Channel (ADC)

Card business and ADC made remarkable progress in
terms of profitability, issuing, and acquiring business. The
number of debit and credit card issued increased
significantly with a remarkable growth of 22 percent and 9
percent respectively. To provide exclusive privileges to our
most valued customers, Platinum Credit Card has been
launched by offering loyalty benefits in shopping and dining
privileges with free priority Pass Membership in 600 VIP
airport lounges around the world. GMON (fraud monitoring
system) is in place to ensure the quality of portfolio and
safeguard against risk of credit card fraud or unauthorized
use. Flow of remittance has been multiplied through the
Banks mobile banking service, SMS banking service.
Besides, to facilitate remittance in the rural areas, your
Bank has introduced pioneering innovation Biometric
Smart Card Prime Cash to bring the untapped people of
urban and rural areas of the country under banking
channel. This effort is another endeavor of the Bank to
bring the unbanked population under financial inclusion.
The customers of the Bank will be able to operate their
accounts through this card by their finger tips. The number
of ATM booths has increased significantly with a total of
134 ATM booths all over Bangladesh and over thousand
POS across different outlets.
Branch Expansion Program (BEP)
To serve the unbanked and potential banking population of
the country, the Bank expanded its footholds in major areas
considering guidelines of the Central Bank. The Bank
strengthened its presence by setting up Conventional as well
as SME/Agri Branch in strategic locations with prospect of
business and economic growth. A total of 11 branches were
added to increase Primes foothold all over the country. The
Central Banks policy directive in branch expansion program
has been adhered by maintaining the ratio of Urban and
Rural branches. According to the approval of Bangladesh
Bank in 2013 your bank is going to open 10 branches
considering the economic and business potential after
comprehensive business feasibility study undertaken by
R&D Division of the Bank.
Islamic Banking
Human Resources (HR)
The Bank provides Islamic Banking products and services

according to guidelines framed by the Islamic Shariah
Board. Hasanah Deposits and investments of Islamic
Banking Branches have shown a continuous upward
growth. Funds under Management (assets and liabilities)
of our five Islamic Branches were Tk 32,591 million.
Besides, the Bank signed memorandum with Hajj Agencies
Association of Bangladesh (HAAB) where agencies under
HAAB across the country will use Prime Banks online
banking facility to collect the subscriptions of the Hajj
Pilgrims for their Hajj and other related expenses in Saudi
Arabia. The Hajj Pilgrims of rural areas will also be able to
deposit their money to the accounts of their respective
agencies at any branch of Prime Bank across the country
through the Banks Islamic Banking branches. The bank for
the first time issued pre-paid Hajj Card for the pilgrims
which became very popular.
The Bank considers investment in Human Resources as

the most important investment in the portfolio and key to
sustainable growth. The Bank has created leaders who
have been exemplary in the banking industry with their
knowledge and leadership qualities. This year was not an
exception where the Bank recruited the most promising
potential human resources, retained the high performers
and placed right people in the right place. The Bank has
attracted the most promising graduates hailing from the
most reputed universities for its management trainee
program. On campus recruitment of the most promising
candidates showed the Banks vision of recruiting the most
talented people in the banking industry. It is our continuous
endeavor to create an organization of mutual trust,
establish an open and enabling environment where our
people can work with self respect, dignity and freedom of
speech. The Bank is one of the pioneers in delivering
professional knowledge to the aspired bankers. The
Human resource Training and Development Center
(HRTDC) has arranged professional training programs and
a good number of people were trained last year. For all
these reasons, the Bank is one of the best places in the
financial sector for developing a banking career.
Basel-II Compliance and Basel-III

The bank maintained satisfactory capital base during the
year. As against the minimum requirement of 10 percent,
the bank maintained capital adequacy ratio at above 12
percent both on solo and consolidated basis. The bank has
strengthened its risk management process to comply with
the supervisory capital requirement under Pillar-2 of
Basel-II. The bank also have the readiness for Basel-lII as
its Tier-I capital is equivalent to 10 percent of risk weighted
assets on consolidated basis and has significant holding of
Government Treasury Bills/Bonds which will support the
maintenance of liquidity coverage ratio.
Information Technology (IT)
Staying committed to the goal of delivering excellent
banking services, requires continuous improvements in
technological platform. It is the combination of technology
and banking knowledge that can redefine the competitive
landscape of the banking industry. The Bank has come a
step further with advancement in IT to provide more quick
and prompt service to its valued customers. The Bank
introduced internet banking Altitude which received
acceptance from all corners of the financial sector. This is
the first ever truly real time fund transfer facility without
even going to the branch. Besides, the Banks core
banking software Temenos T24, a world-class technology
platform, was fine tuned to achieve further efficiency in its
operations. The bank signed agreement to launch for the
first time in Bangladesh, biometric smart card money
transfer service to build the financial services infrastructure
to increase the reach of financial services to the unbanked
people in urban and rural areas. The Remit Fast- a
remittance package developed by the in-house experts is
used in branches of PBL Exchange (UK) Ltd. Phone
Banking, SMS Banking and Centralized Asset
Management System are used in all Branches including
Head Office. The IT team provided regular training in
increasing the efficiency of the officers of the Bank in core
banking and other core operation areas.
Meeting the need of Our Client and the Society

Your Bank is at the forefront of adhering to the principle of
giving back to the society. Throughout the year the Bank
has undertaken significant corporate social activities
towards all sections of society. These activities involved
not only of financial assistance but also highlighting our
role as highly aware corporate entity contributing towards
community as a whole. The Prime Bank foundation has
taken exemplary strides which have proved our mission of
making a difference. The Foundation has been playing
important role in education by providing stipends to the
poor but meritorious students through Education Support
Program since 2007, in health by setting up Prime Bank
Eye Hospital and in sports by establishing Prime Bank
Cricket Club through which it is training up the upcoming &
talented cricketers of the country at the International
Standards. As the Bank believes in giving back to the
customer, it has shown in its delivery of products and
services where it has provided more intrinsic return for
senior citizens, women and school going students.
Economic Outlook
Global economy is still facing a struggle towards recovery,
despite improved conditions in financial markets. A growth
of 2.4 percent for the global economy in 2013, 1.3 percent
for advanced economies weighed down by spending cuts,
high unemployment and weak consumer and business
confidence, 5.5 percent for developing countries economy
has been forecasted. However, for Bangladesh the outlook
in 2013, can be encouraging subject to containing inflation,
maintaining the current account surplus and political
stability resulting to investment friendly environment.
Strategic Priorities
2013 will be a challenging year yet our unshakable firm
commitment towards excellence with outstanding
operational efficiency will make the Bank stronger, set

examples for others to follow and create positive
differences. We believe that, as long as we adhere to the
right development strategy, take pro-active actions and
forge ahead determinedly, 2013 is bound to be a year full
of hopes and harvests. Our strategic priorities will be:
Expand cross-border activities
Strengthen recovery drives
Implement automated transaction monitoring system to

guard against money laundering
Upgradation of the operating system.
Continue to provide new products and services to

customers with support of superior information
technology platform
Increase more value added services for our corporate

clients and maintain leadership in the corporate
business
Diversification of business in SME, Retail and

agricultural financing
Financial inclusion of customers in the unbanked areas

with integration of IT, remittance platform
Enhance internal control across the Bank
I conclude with sincere thanks and gratitude to the Central

Bank for their time-befitting policies, guidance and
supports. I am also thankful the Board of Directors for their
visionary role and guidance. My special applauds to the
Prime Bank Team, the pillar of our success against
challenges.
Md. Ehsan Khasru

Managing Director & CEO
Directors Report on Financial Statements and Internal Control

The Directors are required to present the Annual Report
together with Directors Report and the Financial
Statements in accordance with Bangladesh Accounting
Standards (BAS) and Bangladesh Financial Reporting
Standards (BFRS), the Bank Companies Act 1991, the
rules and regulations issued by Bangladesh Bank, the
Companies Act 1994, Securities and Exchange
Commission (SEC) Rules 1987, the Listing Rules of Dhaka
Stock Exchange Limited and Chittagong Stock Exchange
Limited and other applicable laws and regulations.
The financial statements are required by law and
International Accounting Standards as adopted by ICAB to
present fairly the financial position of the Company and the
performance for the period. In preparing the financial
statements, the followings are to be done:
Select suitable accounting policies and then apply

them consistently;
Make judgments and estimates that are reasonable

and prudent;
Ensure that the financial statements have been

prepared in accordance with International Accounting
Standards adopted by ICAB;
Prepare the financial statements on going concern

basis unless it is appropriate to presume that the
company will not continue in business.
Proper accounting records should be kept that disclose

with reasonable accuracy at any time the financial position
of the Company and enable them to ensure that its
financial statements comply with Companies Act 1994 and
Bank Company Act 1991.
In compliance with the requirements of the SECs
Notification dated 07 August, 2012, the Directors are also
required to declare certain matters in their report which
inter alia includes as under:
The financial statements prepared by the

management of the issuer company present fairly its
state of affairs, the result of its operations, cash flows
and changes in equity;
Proper books of accounts of the issuer company have

been maintained;
Appropriate accounting policies have been

consistently applied in preparation of the financial
statements and the accounting estimates are based
on reasonable and prudent judgment;
International Accounting Standards and International

Financial Reporting Standards as applicable in
Bangladesh, have been followed in preparation of
financial statements with appropriate disclosures;
The system of internal control is sound in design and

has been effectively implemented and monitored;
There are no significant doubts upon the issuer

companys ability to continue as a going concern. If
the issuer company is not considered to be a going
concern, the fact along with reasons there should be
disclosed;
Significant deviations from last year in operating

results of the issuer company should be highlighted
and reasons thereof should be explained;
Key operating and financial data of at least preceding

three years should be summarized;
If the issuer company has not declared dividend

(Cash or Stock) for the year, the reason thereof
should be given.
The Directors confirm that Annual Report together with the

Directors Report and the Financial Statements have been
prepared in compliance with Bangladesh Accounting
Standards (BAS) and Bangladesh Financial Reporting
Standards (BFRS), the Bank Companies Act 1991, the
rules and regulations issued by Bangladesh Bank, the
Companies Act 1994, Securities and Exchange
Commission (SEC) Rules 1987, the Listing Rules of Dhaka
Stock Exchange Limited and Chittagong Stock Exchange
Limited and other applicable laws and regulations.
Meetings
The Board meets regularly to review policies, procedures,
risk management and business plan of the Bank and
appoints CEO and Senior Management etc. During the
year 2012, 19 meetings of the Board were held.
This report should be read in conjunction with Auditors
Report to the Shareholders of Prime Bank Limited.
Other
compliances
of
BSEC
Notification
No.
SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August,
2012 are given in Annexure I, II & III.
On behalf of the Board of Directors

Chairman
Report of the Audit Committee- 2012

In compliance with the guidelines of Bank Companies Act
3.
Fixing quorum of the Audit Committee Meeting with at
4.
Ensuring presence of Chairman of the Committee
5.
To review the financials of the Subsidiaries particularly
& BSEC directives, the Audit Committee of the Board of

Prime
Bank
Limited
has
been
functioning
as
sub-committee of the Board of Directors. It has been

assisting the Board in ensuring that financial statements
reflect true and fair view of the state of affairs of the bank.
It also carries out the oversight responsibilities for
implementation and compliance of different policies
least one Independent Director
during AGM of the company.
their investment issues.
formulated by the Board and the Regulators.
The Board of Directors accordingly, resolved to comply
Considering the importance of the role of the Audit
a result, Audit committee has been functioning as usual
Committee and allowing it cover even wider area of

oversight, Banking Regulation & Policy Department
(BRPD) of Bangladesh Bank in the recent past allowed
induction of more members in the Audit Committee.
Accordingly, the strength of the committee has been raised
to maximum five (05) and at the moment comprises of
following members:
with all the stipulations within the expiry of the deadline, as
strictly in compliance with the directives of the promulgated

notification.
During the year 2012, Audit Committee had eight (08)

meetings against the stipulated four. In this time, the
Committee met the Internal Audit Team, Financial
Administration Division and Internal Control & Compliance
Team of the Bank. The Committee also had meetings with
the External Auditors to discuss their observations in the

1)
Prof. Ainun Nishat
: Chairman
(Depositor/Independent Director)
2)
Mr. K. M. Khaled
: Member
3)
Mr. M. A. Khaleque
: Member
4)
Mrs. Nazma Huq
: Member
5)
Prof. Mohammed Aslam Bhuiyan : Member
progress of the bank and accordingly communicated

appropriate actions to the concerned in light of the
discussion.
The Committee attended following issues during the

year under reporting:
Oversee the financial reporting process
Monitor Inter Control Risk management process
Committee to avoid conflict of interest and as a measure of
Oversee performance of external auditors.
Committee have been excluded from being member of the
Reviewing financial statements of both the Holding
(Independent Director)
Care has been taken in the composition of the Audit

good Corporate Governance. As a result, members of the
Executive Committee of the Board which generally deals
with the business issues. Similarly, as per regulatory
investment made by them before submission to the
guidelines, Company Secretary has been assigned duties

and role of the Secretary to the Committee.
In a recent development, Bangladesh Securities and

Exchange Commission (BSEC) vide their Notification
board for approval.
Reviewing adequacy of internal audit function.
Reviewing Management Letter issued by Bangladesh
dated 7.08.2012 directed taking certain measures to
Bank & other External Auditors and Management

response thereto as part of compliance.
improve upon the standard of corporate governance in the

listed companies which among others included:
company and the Subsidiaries particularly the
Reviewing
Internal
Auditors
findings
on
the
irregularities both minor & of significance at different
1.
Constitution of the Audit Committee with Independent

Director as Chairman.
branches of the bank and referring those to the Board
2.
Set forth Role/TOR of the Audit Committee in writing.
Board.
with appropriate recommendation for decision of the
Reviewing the audit reports of the subsidiaries and
The Audit Committee also reviewed the Annual
directing necessary actions as appropriate.
Financial
Statements,
2012
prepared
by
subsidiaries to ensure proper functioning as per laid

down guidelines of the Board and the regulators.
Howlader Yunus & Co. and M/S Hoda Vasi
Besides, the Committee:
consideration of the Board.
Chowdhury
&
Co.
and
recommended
for
In addition, the Committee also undertook the
Agriculture and Policy on Green Banking which has
been declared a thrust sector for the economy of the

country.
Reviewed the functioning of Human Resources

Development Centre (Training
Academy) at
submission at his Secretariat.
Advised Management to take into account the
importance of working in the Audit & Inspection
Teams for versatility and as such ensure that
experience of working in such role is counted as a
positive point in favor of the incumbent during annual

performance appraisal.
periodical interval for its significance in contribution
Before drawing conclusion, I like to extend sincerest thanks
Capital.
and support to carry forward the mission of the Committee.
towards transformation of the resources in to Human
advising Managing Director to review the Audit &

Branches on regular basis immediate upon their
progress of the bank:
Reviewed performance and portfolios of SME,
Endeavored to introduce best practices including

Inspection reports with the concerned Head of
followings considering their significance in the
of all Divisions of the Head Office including Prime

Bank Foundation alongside the branches and
the
Management and audited by External Auditors M/S.
Advised Audit Teams to carry out Audit & Inspections
Reviewed the performance of the Islamic Banking

Branches and recommended introduction of Sharia
Compliant software. Directed
&
ensured
health
to all the members of the Audit Committee for their time
I also like to thank the members of the Board of Directors

for allowing the Committee to discharge its due role as an
independent sub-committee of the Board.
checking of the IT System and taking measures for

upgradation for efficiency & effectiveness.
Suggested software development for monitoring &

following up compliance issues
Prof. Ainun Nishat

Chairman, Audit Committee
Report of Prime Bank Shari'ah Supervisory Committee 2012

Bismillahir Rahmanir Rahim.
All praises are for Allah Subhanahu-wa-tayala. He is the
One and Second to none.
Salat and Salam are on Hazrat Muhammad (peace be
upon him) who is the best Prophet and the last messenger
of Allah.
In the year 2012, three meetings of Prime Bank Shari'ah
Supervisory Committee were held where different
operational issues including those referred to by the Board
of Directors and the Management of the Bank were
reviewed by the Committee and necessary guidelines and
counseling were provided thereon. Respected members of
the Committee also addressed Iftar Mahfils arranged by
the Islamic banking branches of the Bank and held formal
and informal discussions on Shari'ah issues that inspired
all concerned for compliance of Shari'ah. Apart from this,
the Muraqibs audited all Islamic banking branches during
the year 2012 and submitted reports thereon. Based on the
report, some branches were advised to improve their
standard of Shariah compliance in certain areas.
The Prime Bank Shari'ah Supervisory Committee after
reviewing Shari'ah audit reports has opined as under:
a)
It has been observed from the reports of the Muraquibs

that desk level violation in investment deals have been
decreased significantly. Most of the Shariah violations
occur due to software problem.
b)
It has also been observed that awareness about the

compliance of Shari'ah has been increased during the
year under report among the officials related to
investment and also among the investment clients as
compared to the previous year.
c)
To ensure compliance of Shari'ah as per expected

standard, the decision of Shariah Supervisory
Committee to install Islamic banking software at the
Islamic banking branches was taken into consideration
by the Management seriously and work order has
already been issued to the vendor for implementation of

the same at the Islamic banking branches.
d)
It has been also observed that effectiveness of

Shariah audit conducted by the Muraqibs have been
increased in Shari'ah compliance among the branch
officials.
The following suggestions have been given by the

Prime Bank Shari'ah Supervisory Committee:
1)
Implementation of the Islamic Banking software at the

Islamic Banking Branches at an early date.
2)
Final Profit of Mudaraba depositors to be calculated

and posted before the first quarter of the year.
3)
The training of manpower of the Bank on Shari'ah

principles, at all tiers of Islamic banking should be
strengthened further.
4)
To engage manpower having sufficient knowledge and

training on Islamic Shari'ah at all the Islamic banking
branches to ensure proper buying and selling in the
investment operations.
5)
The officers should be more cautious in

implementation of Shari'ah principles in buying and
selling of goods while making investment. Besides,
manuals prepared for Islamic banking should be
strictly followed.
May Allah give us Taufique to achieve His satisfaction

through implementation of Shari'ah in every sphere of life.
Ameen.
Nasiruddin Ahmed
Member Secretary
Prof. Maolana Mohammad Salahuddin

Chairman
28 February, 2013
Board of Directors
Prime Bank Limited
Adamjee Court Annex Building-2
119-120 Motijheel Commercial Area
Dhaka-1000
SUB: CEO / CFOs Declaration to the Board

The following is provided to the Board of Directors of Prime Bank Limited in our capacity as the persons responsible for
performing the functions of Managing Director & CEO and Chief Financial Officer of the Bank.
In accordance with the notification of Bangladesh Securities and Exchange Commission No.
SEC/ CMRRCD/2006-158/134/Admin/44 dated 07, August, 2012 we declare that for the financial year ended 31
December, 2012:
i) We have reviewed the financial statements for the year and that to the best of our Knowledge and belief:
a)
these statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading;
b)
these statements together present a true and fair view of the companys affairs and are in compliance with
existing accounting standards and applicable laws;
ii) There are, to the best of knowledge and belief, no transactions entered into by the Bank during the year which are
fraudulent, illegal or violation of the Banks code of conduct.
Md. Ehsan Khasru
Ahmed Kamal Khan Chowdhury
Chief Financial Officer
Fairness, Transparency, Accountability and Responsibility
are the minimum standard of acceptable corporate
behavior today. At PBL, corporate governance means
increasing the shareholders value by being efficient,
transparent, professional and accountable to the
organization, society and the environment.
Board of Directors
The number of Board member is 19 as per the Bangladesh
Banks guideline. Out of the 19 members one member is an
Independent Director and two members are from the
Depositors. Thus the bank has also complied with the
Bangladesh Securities and Exchange Commissions
corporate governance guidelines. Board members include
persons of high caliber, with academic and professional
qualification in the field of business and professionals. This
gives strength for effective discharge of duties and
responsibilities by the Board. The Board approves the
banks budget and business plan and reviews those on
monthly basis so as to give directions as per changing
economic and market environment. The Board reviews the
policies and manuals of the various segments of businesses
in order to establish effective risk management in credit and
other key areas of operations. The Board and the Executive
Committee review the policies and guidelines issued by the
Bangladesh Bank regarding credit and other operations of
the banking industry. The management operates within the
policies, manuals and limits approved by the Board. Regular
meeting of the Board is held, at least once in a month.
Code of Conduct
The Board of Directors of PBL adopted the following Code of
Conduct for Members of the Board to provide guidance to
directors to carry out their duties in an honest, responsible and
businesslike manner and within the scope of their authority, as
set forth in the laws of the country as well as in the
Memorandum and Articles of Association of the company.
Members are expected to comply with the following standards
to enhance and maintain the reputation of the Company:
The Members shall act honestly, in good faith and in
the best interests of the shareholders and the
company.
The members shall not make improper use of
information acquired as a director.
The members shall not take improper advantage of the
position of a director.
The members will be obligated to be independent in
judgment and actions and take all reasonable steps to
be satisfied as to the soundness of decision taken by the

Board of Directors.
Confidential information acquired by the members in
the course of exercise of directorial duties shall remain
the property of the company and it will be improper to
disclose or allow it to be disclosed, unless that
disclosure has been authorized by the company, or the
person from whom the information has been received.
Members shall make every effort to attend all Board
and Committee Meetings during their tenure. They will
not absent themselves without good reasons or
confirming leave of absence.
To maximize effectiveness of the Board/Committee
Meetings, contribution of Individual director shall be
monitored and appraised on an annual basis.
Board members having interest of any nature in the

agenda of the meeting, shall declare beforehand the
nature of their interest and withdraw from the room,
unless they have a dispensation to speak.
Training opportunities/orientation/workshops will be
arranged for the members (especially for the newly
inducted members) to make them acquainted with the
international best practices, their fiduciary obligations,
Code of Conduct etc.
Members shall always maintain Fit and Proper Test
Criteria, clean CIB status and other obligations
declared by the Primary and other Regulators.
Members shall be judicious about their entitlement of
benefit/privileges as per Banking Companies Act
-1991, Circulars issued by Bangladesh Bank and shall
be willing to produce supporting documents, if
required.
Members shall comply with Article 23.1 of the Banks
M&AA while making Sale-Buy of Companys share
and shall refrain from making such transaction without
formal declaration.
Every Director will assure annually signing a confirmation that
they have gone through, have complied with and will continue to
comply with the set of codes approved by the Board of Directors.
Responsibilities of the Chairman of the Board of Directors
As the Chairman of the Board of Directors (or
Chairman of any Committee formed by the Board of
Directors) does not personally possess the jurisdiction
to apply policy making or executive authority, he shall not

participate in or interfere into the administration or
operational and routine affairs of the bank.
The Chairman may conduct on site inspection of any
branch or financing activities under the purview of the
oversight responsibilities of the Board. He may call for
any information relating to banks operation or ask for
investigation into any such affairs; he may submit such
information or investigation report to the meeting of the
Board or the Executive Committee and if deemed
necessary, with the approval of the Board, he shall
effect necessary action thereon in accordance with the
set rules through the CEO. However, any complaint
against the CEO shall have to be apprised the
Bangladesh Bank through the Board along with the
statement of the CEO.
Besides, the Chairman may/shall assume any other
responsibility if the Board assigns within the purview of the
Rules, Regulations, Acts and Articles of the bank.
Executive Committee
As approved by the Bangladesh Bank, the Board has
Executive Committee. The number of members of the
Executive Committee is 7. The Executive Committee reviews
the policies and guidelines issued by the Bangladesh Bank
regarding credit and other operations of the banking industry.
It ensures the implementation of the policies and guidelines
through the management. The Executive Committee of the
Board approves the credit proposals as per the approved
policy of the Board. The management ensures due diligence
of the credit policy and risk management at the time of
submitting the credit proposals.
Audit Committee
In compliance with the guidelines of Bank Companies Act &
BSEC directives, the Audit Committee of the Board of PBL has
been functioning as a sub-committee of the Board of
Directors. It has been assisting the Board in ensuring that
financial statements reflect true and fair view of the state of
affairs of the bank. It also carries out the oversight
responsibilities for implementation and compliance of different
policies formulated by the Board and the Regulators.
Considering the importance of the role of the Audit Committee
and allowing it cover even wider area of oversight, Banking
Regulation & Policy Department (BRPD) of Bangladesh Bank
in the recent past allowed induction of more members in the
Audit Committee. Accordingly, the strength of the committee
has been raised to maximum five (05).
Roles and Responsibilities of the Audit Committee

The audit Committee will:
I. Internal control
Evaluate whether management is setting the
appropriate compliance culture by communicating the
importance of internal control and the management of
risk and ensuring that all employees have
understanding of their roles and responsibilities;
Review the arrangements made by the management
for building a suitable Management Information
System (MIS) including computerization system and
its applications;
Consider whether internal control strategies
recommended by internal and external auditors have
been implemented by the management;
Review the existing risk management procedures for
ensuring an effective internal check and control
system;
Review the corrective measures taken by the
management as regards the reports relating to
fraud-forgery, deficiencies in internal control or other
similar issues detected by internal and external
auditors and inspectors of the regulatory authority and
inform the board on a regular basis.
II. Financial Reporting
Oversee the financial reporting process
Monitor choice of accounting policies and principles
Review the quarterly, half yearly and annual financial
statements and determine whether they are complete
and consistent with the accounting standards set by
the regulatory authority before submission to the
Board for approval
Meet with management and the external auditors to
review the financial statements before their
finalization.
Review statement of significant related
transactions submitted by the management
party
Review management letters/letter of internal control

weakness issued by Statutory Auditors.
III. Internal Audit
Review the adequacy of internal audit function
Review the activities and organizational structure of

the internal audit function and ensure that no
unjustified restrictions or limitations are made;
Review the efficiency and effectiveness of internal

audit function;
Review that findings and recommendations made by

the internal auditors for removing the irregularities
detected and also running the affairs of the bank are
duly considered by the management.
IV. External Audit
Review the auditing performance of the external

auditors and their audit reports;
Review that findings and recommendations made by

the external auditors for removing the irregularities
detected and also running the affairs of the bank are
duly considered by the management;
Make recommendations to the Board regarding the

appointment of the external auditors.
V. Compliance with existing laws and regulations
Review whether the laws and regulations framed by

the regulatory authorities (central bank and other
bodies) and internal regulations approved by the
Board have been complied with.
VI. Other Responsibilities
Place compliance report before the Board on

quarterly basis regarding regularization of the errors
& omissions, fraud and forgeries and other
irregularities as detected by the internal and external
auditors and inspectors of regulatory authorities;
Perform other oversight functions as requested by
the Board and evaluate the committees own
performance on a regular basis.
Benefit provided to Directors and Managing Director

As per the Bangladesh Bank BRPD Circular no. 09 dated
19th September 1996, banks in Bangladesh can provide
only the following facilities to the Directors:
The Chairman of the Board of Directors may be

provided car, telephone, office chamber and private
secretary;
In addition to the above, Directors are entitled to

fees and other benefits for attending the Board, EC,
Audit Committee and Shariah Supervisory
Committee meetings (notes to accounts 32);
Managing Director is paid salaries and allowances

as per approval of the Board and the Bangladesh
Bank (notes to accounts 31).
The bank has fully complied with the Bangladesh Bank
Circular and Instruction.

Retirement and Re-election of Directors
As per Companies Act 1994 and Articles of Association of
the bank, following Directors will retire in the 18th Annual
General Meeting and they are eligible for re-election:
Quazi Sirazul Islam
Mr. Md. Nader Khan
Mrs. Nazma Haque
Mrs. Salma Huq
Mrs. Marina Yasmin Chowdhury &
Delegation of power
The Board has delegated appropriate finance and
business power to the management as per guidelines of
the Bangladesh Bank. In order to have proper functioning
and quick disposal of credit proposal, the Board has
delegated authority to the Executive Committee of the
Board to approve proposals within certain limit. The
delegation has supported the operation in positive manner.

Prime Bank Shariah Supervisory Committee
Operations of Islamic banking branches of PBL are
supervised
by
Prime
Bank
Shariah
Supervisory
Committee, comprising of a pool of Shariah experts and

renowned economists of the country. The basic functions
of Prime Bank Shariah Supervisory Committee are to offer
views on matters related to Islamic banking operations of
the bank from time to time and to assist the Board of

Directors by advising them on matters relating to Shariah.
Their recommendation on Shariah Principles is strictly
respected by the Board to run Islamic banking operations
of the bank. During the year 2012, three meeting of the
Committee were held. Apart from this, the Muraqibs

audited all Islamic banking branches during the year and
submitted reports to the Committee.
Management
The management team of PBL is headed by the Managing
Director, Mr. Md. Ehsan Khasru, who joined the bank on
15th September, 2011. Several management committees
have been formed to handle the banking operation and
identify and manage risk. The committees are MANCOM,
ALCO, MRS Committee. The Managing Director leads the
two most important Committees, MANCOM and ALCO. As
per the Bangladesh Banks instruction, Basel-II
Implementation Committee has been formed which is
responsible for proper implementation of Basel-II capital
adequacy guidelines in the bank.
Responsibilities and Authorities of the CEO
The CEO of the bank, whatever name called, shall discharge
the responsibilities and effect the authorities as follows:
In terms of the financial, business and administrative
authorities vested upon him by the board, the CEO shall
discharge his own responsibilities. He shall remain
accountable for achievement of financial and other
business targets by means of business plan, efficient
implementation thereof and prudent administrative and
financial management.
involved or interfere into such affairs. The authority relating

to transfer of and disciplinary measures against the
staff, except those at one tier below the CEO, shall rest
on him, which he shall apply in accordance with the
approved service rules. Besides, under the purview of
the human resources policy as approved by the board,
he shall nominate officers for training.
Besides, the Managing Director may/shall assume any
other responsibility if the Board assigns within the purview
of the Rules, Regulations, Acts and Articles of the bank.
Achievement of Business targets in 2012
Performance of the bank for the year 2012 was good
considering the prevailing market challenges as well as the
global economic slowdown. The performance of the bank
against targets is as below:
Taka in billion
Budget
Budget Actual
Achievement
2012
2012
(%)
Profit before provision
8.50
8.55
101
Deposit
200.00 182.05
91
Advance
160.00 160.89
101
Import
210.00 168.53
80
Export
158.00 143.61
91
Inward Remittance (Foreign) 43.00 42.45
99
Guarantee
33.00 29.39
89
Particulars
Risk Management
PBL has a comprehensive risk management policy details of which
are given in Risk Management chapter of this Annual Report.
The CEO shall ensure compliance of the Bank

Companies Act, 1991 and/or other relevant laws and
regulations in discharge of routine functions of the bank.
Regulation and Supervision
The CEO shall include information on violation of any

law, rules, regulation including Bank Company Act,
1991 while presenting memos before the Board or the
committee formed by the board.
Bank Company Act 1991 and various circulars issued by
CEO will provide all sorts of information to Bangladesh

Bank about the violation of Banking Companies Act, 1991
and/ or any violation of Laws, rules and regulations.
The recruitment and promotion of all staff of the bank
except those in the two tiers below him shall rest on the
CEO. He shall act in such cases in accordance with the
approved service rules on the basis of the human
resources policy and sanctioned strength of employees
as approved by the board. The Board or the chairman of
any committee of the Board or any director shall not get
The bank is governed by the Bangladesh Banks rules and
regulation on various issues of banking operation. The

the Bangladesh Bank are the basis of supervision. Various
requirements and controls are imposed covering inter-alia
capital adequacy, depositors protection, risk management,

market and liquidity, anti money laundering compliance,
prudential guidelines on lending and reporting standard.
The Bangladesh Bank also undertakes comprehensive

and special audit on the bank. The Bangladesh Bank
regularly meets with senior executives of the bank,
discusses issues regarding adherence to the standards

and guidelines by the bank.
Banks Exchange Houses and PBL Finance (Hong Kong)

Limited are governed by the rules and regulation of the
respective monetary authorities.
Awards and Recognition
01
02
03
05
08
01.
02.
03.
04.
05.
06.
06
07
09
SAFA Award for the Best Presented Accounts and

Corporate Disclosures in Banking Sector 2010 1st prize.
ICAB National Award for the best published
Accounts and Reports 2010 - 1st prize
ICMAB Best Corporate Award 2010-1st prize
International Star for Leader in Quality (ISLQ)
Award, France
SAFA Best Presented Accounts Award - 2009
overall winner
Joint Winner Banking Financial Sector
04
10
07.
SAFA Best Presented Accounts and Corporate

Governance Disclosures Award 2009 - winner
(Banking Sector)
08.
ICMAB Best Corporate Performance Award 2008 1st Position (Jointly)
09.

Bronze Award (Banking Sector)
10.
SAFA Best Presented Accounts Award 3rd Position
11
12
13
14
15
16
17
18
19
20
11.
12.
FNS Award - 2005, Best Performing Local Bank

ICAB National Awards - 2004 for Best
Published Accounts and Reports - 1st Prize,
Financial Sector (Banking)
13. ICAB National Awards - 2003 for Best
Published Accounts and Reports - 2nd Prize
Financial Sector (Banking)
14. 9th ICAB National Awards for Best Published
Accounts and Reports 2008 1st prize Financial
Sector (Banking)
15. 10th ICAB National Award for Best Published
Accounts and Reports 2009 1st prize
(Banking Sector)
17.
12th ICAB National; Awards for Best Published

Accounts & Reports 2011 (1st Postion-Private
Sector Bank)
18.
ICMAB Best Corporate Award 2012 1st

Position in the Banking Sector (Private
Commercial Bank-Traditional Operation)
The Bizz 2012- Inspirational Company Award
Bangladesh Business Award-2011, DHL-The
Daily Star
SAFA Best Presented Annual Report Awards
2011-Winner (Private Sector Banks)
SAFA Best Presented Annual Report Awards
2011-Overal Winner (1st Runner up)
19.
20.
21.
22.
16. 11th ICAB National Awards for Best Published

Accounts and Reports 2010 Winner (Private
Sector) Corporate Governance Disclosure Awards
Audit by the External Auditors
based audit the audit team evaluates the level of inherent
External auditors audited 20 branches and Head Office so
as to cover minimum 80 percent of the risk assets. They

also discussed with the management and Audit Committee
of the Board on various issues including internal control
and compliance. Suggestions of the auditors are given due
consideration and are implemented by the management.
The reports of the auditors are also discussed in the Board.

Internal Control and Compliance
risk of individual borrower as well as the level of a particular

branch on the basis of a risk matrix.
Internal Audit and Inspection
Internal auditing and Inspection (IAI) is an independent,
objective assurance consulting activity which adds value

within the bank through improvement of banks internal
operation. IAI follows systematic and disciplined approach
to evaluate and improve the effectiveness of risk
With the advent of globalization vis--vis technological
changes, banking has become more and more diversified.
As the banking function entails high risk, effective internal

control system, good corporate governance, transparency
and accountability have become more important for

banking sector worldwide. Internal control system identifies
the risk inherent in the process, adopts mitigation

measures and ensures compliance thereof.
As per guidelines issued by the Bangladesh Bank, PBL

established an organizational structure which allows
segregation of duties among key functional units. Internal
management, control and goverance processss. For

sustainable growth, operational risks shall have to be
controlled efficiently which is done by IAI through off-site

and on-site supervisions as per banks and regulators
policy guidelines. IAI also ensures implementation status of

instructions and policy guidelins of the Board of Directors,
Executive Committee of the Board and Audit Committee of

the Board.
General Objectives of audit and inspection are:
Control and Compliance Division of PBL has been
Monitoring unit.
Historically, the internal audit system in banks has been
To detect and prevent fraud and forgeries;
To find out errors and lapses for immediate
concentrating on transaction testing, testing of accuracy
and reliability of accounting records and financial reports,
integrity, timeliness of control reports and adherence to
legal and regulatory requirements. PBL also undertakes

cash verification of the branches from time to time in order
to check any fraud and forgery in respect of cash
transactions. The bank also undertakes surprise inspection

of smaller branches on sample basis having low volume of
business.
However, in the changed scenario, such testing by itself

would not be sufficient. There is a need for widening as well
and
effectiveness
of
risk
To achieve these objectives PBL is gradually moving
necessary improvements when felt necessary. In risk
appliances and running processes which may pave the
To look over and report that operations of the bank are
conducted
within
the
framework
of
principles,
operational manuals and/or circulars;
To keep the bank along with its human resources and
valued customers in safe and sound position by
minimizing and controlling operational risks to the
management system and control procedures prevailing in

internal audit in 2006 and continues the same with
To indicate weaknesses of operational methods,
procedures and instructions laid down in different
towards risk based internal audit to evaluate the risk

various areas of its operation. PBL introduced risk based
To point out policy deviations in executing duties and
responsibilities of different functional tires;
Specific objectives of audit and inspection are:
management
procedures and internal control system in the banks.
rectification and future notification and correction;
ways for errors and frauds.
as redirecting the scope of internal audit to evaluate the

adequacy
financial statements are in accordance with the Bank

Company Act 1991, IAS and BAS;
reconstructed into 03 (three) units, i.e., (i) Internal audit and
inspection unit, (ii) Central compliance unit, and (iii)
To examine whether the books of accounts and
highest extent possible;
To play active role in the process of transforming
human resources into human capital;
To impart hands-on guidances to the employees for
their learning and correction in day to day operational

activities;
To recommend for formulation and/or implementation
B) Audit Cell of the Board undertook following Audit and

Inspections of the bank during 2012:
SL
of business and operational policies to manage

banking activities efficiently and prudently by reducing
cost of doing business;
To provide detailed indicative information of current
business affairs to the Board of Directors and the
deviations while executing operational activities in

various levels;
To conduct risk based internal audits as per internal
and regulators policy guidelines and also international

banking norms and practices.
Following types of audit and inspections are undertaken by
the Audit and Inspection Division and Audit Cell of the

Board:
Comprehensive Audit
Risk Based Internal Audit
Special Audit / Inspections
A) Audit and inspection division undertook following audit

and inspections of the bank during 2012:
SL
Nature of Audit and

Inspection
Audit & Inspection

conducted
2012
Comprehensive inspection of
Investigation and / special
40
30
Surprise inspection of
53
52
Comprehensive risk based
64
60
Inspection of overseas
03
01
Divisions at Head Office

inspection of branches
branches
internal audit of branches
Exchange Houses of PBL
2011
8
2011
8 times
8 times
Review of the business

performance of the branches
and cash verification
16
33
management about principle, policy and objective
2012
Audit on compliance of the

decisions of the Board, the
Executive Committee and the
Audit Committee
To report to the Board of Directors and the
Audit & Inspection

conducted
management for their proactive decision making for

ensuring sustainable growth with green banking;
Nature of Audit and

Inspection
Review of Large Loans over

Tk 50 million
Special inspection
16
33
branches branches
1
Compliance Unit
The Bangladesh Bank BRPD Circular no. 17 dated
October 07, 2003 advised the scheduled commercial
banks operating in the country to put in place effective risk
management system which includes money laundering risk
management among others. Since money laundering, a

criminal act recognized all over the world, has very severe
consequence in the economy and security of the society,
PBL has updated Anti Money Laundering Guidelines 2012
which includes senior management commitments to the
anti-money laundering program. The management has
evolved such a culture for the bank so that all the
employees strictly adhere to each and every provision of
Money laundering Prevention Act-2012 and Anti-Terrorism
(Amended) Act-2012. All employees of the bank
irrespective of the position they hold, are accountable to the
top management and regulatory body for their activities
which might directly or indirectly relate to money laundering.
Activities of Central Compliance Unit regarding prevention
of anti-money laundering during the year 2012 include:
Reconstitution of Central Compliance Committee

(CCC) to review the AML activities of the bank;
A message have been sent from the desk of the

Managing Director to all employees of the bank for
ensuring compliance in AML issues;
Submission of report to the Managing Director on

quarterly basis regarding AML activities;
Use of uniform Account Opening Form as prescribed

by the Bangladesh bank;
Declaration of Transaction Profile has been obtained
for all accounts;
Reporting of CTR on regular basis;

Reporting of STR to Bangladesh Bank was done
accordingly;
Reporting of Unusual Transaction
Task-Force on regular basis;
to
Central
Collection and review of Self Assessment Report from

the branches and take corrective actions when
needed;
Solution of the problems/issues as and when received
from BFIU of the Bangladesh Bank,
Compliance of the Bangladesh Bank requirements
from time to time and attending the meeting of the
Central Task Force arranged by BFIU of the
Bangladesh Bank;
Arranging five training programs on prevention of
money laundering and terrorist financing attended by
137 participants;
Conduct AML inspection on 99 branches by internal
audit and inspection teams to find out the lapses in
anti-money laundering issues;
Surprise visit conducted on 60 branches to detect and
rectify the weaknesses in AML activities and to build
up awareness among the employees;
Follow-up and monitoring of audit report (related to
anti-money laundering) as and when received from
banks Internal Audit and Inspection Division and
External Auditors of the bank;
Conducting warm-up session round the year for
updating the knowledge on the new Money laundering
Prevention Act-2012 and Anti-Terrorism (Amended)
Act-2012.
corruption of data, risk of unauthorized access to and

modification to data in electronic form, risk of logical access
to instruction sets, data files and critical system settings etc.
To comply with the ICT guideline of the Bangladesh Bank and
ensure smooth operation of business, an independent IT
Audit & Security department was formed. The main aim of the
department is to identify the inherent risks and vulnerabilities
associated with the use of IT, its operation and operation of
core banking system Temenos T24, controls implemented to
mitigate the risks and provide recommendations for
improvement in controls to reduce risks.
The objectives of internal IT audit are reviewing the risks
faced by the bank in relation to use of information
technology and assess whether they are being controlled /
mitigated in an effective and efficient manner and providing
an assessment of the banks IT control against Guideline
on ICT for Scheduled Banks and Financial Institutions of
the Bangladesh Bank.
PBL is one of the pioneer banks in Bangladesh to realize
importance of IT security. IT Audit and Security
Department has been actively assessing and reporting
security issues to the management. However, to mitigate
present security risks, the department will work on strategic
level of information security management, which will

include
implementation
of
Information
Security
Management System (ISMS) and security standard

adoption like ISO27001-2 and PCI DSS (Payment Card
Industry Data Security Standard). ISO27001-2 is the

internationally recognized Management Standard for
Information Security and PCI DSS is a widely accepted

standard and regulatory requirement for Debit/Credit Card
security.
Another crucial task of the department is to make aware of
all level of users (executives and officers) of the bank at
IT Audit and Security
branch and Head Office about IT and IT Securities, its risks
Information systems audit is a part of the overall audit
risks. In this perspective, IT Audit department conducted a
process, which is one of the facilitators for good corporate

governance. IT audit is basically the process of collecting
and evaluating evidence to determine whether a computer
system safeguards assets, maintains data integrity,
achieves organizational goals effectively and consumes
resources efficiently.
PBL is fully dependent on information technology for its
smooth operation and customer services. Information and
information system controls in an IT driven environment
suffer from significant inherent risks such as data loss,
and vulnerabilities and controls to mitigate / minimize the
number of workshops on IT Security and its risk to share

knowledge and create awareness among all level of users
of the bank.
During the year 2012, the department carried out audit on

99 branches and 15 SME branches.
Following key areas are being covered under IT Audit:

IT management
Implementation of security policy
Physical security and environmental control
Safety is almost like risk free Government short term

obligations. CRISL also foresees no significant change /
Access control
volatility in its operation in near future and placed the bank
Password compromising
with Stable Outlook for the next one year.
Network security
Awards & Recognition
Systems continuity
Since its inception in 1995, PBL is delivering banking
Application system Temenos T24 (thorough checking of
services with a view to be recognized as the best Private
overall operation of the banking system, i.e., general

banking, credit and foreign trade).
Commercial Bank in Bangladesh in terms of efficiency,

capital adequacy, asset quality, sound management and
profitability having strong liquidity. PBL was the recipient of
Ratings
ICAB National Awards for Best Presented Annual Reports
PBL was rated by Credit Rating Information and Services
2011 from ICAB (Institute of Chartered Accountants of
below:
professionalism and reputation for PBL to receive the
Limited (CRISL). The summary of the ratings is given
award consecutively for eight years. For the fourth time in a
CRISL Rating
Surveillance Rating-2010
Long Term Short Term

ST-1
AA+
+
ST-1
AA
Date of Declaration of Rating
May 30, 2012
Surveillance Rating-2011
Outlook
Bangladesh) for Annual Report 2011. It is a great honor of
Stable
CRISL reaffirmed the long term rating of PBL to AA+

(pronounced as double A plus) and short term rating to
ST-1 based on consolidated financials up to December
31, 2011 and other qualitative and quantitative information
up to the date of rating. While assigning the rating CRISL
viewed the ongoing fundamentals of PBL such as strong
capital base, good asset quality, satisfactory financial
performance, increasing market share, average operating
performance, diversified business lines, considerable
increase in non-funded business, sound IT infrastructure,
experienced management team etc. However, the above
factors are moderated, to some extent, by increase in
non-performing loan, high cost of fund, dependence on
row, PBL was the winner of SAFA Best Presented Annual

Report Awards 2011 from SAFA (South Asian Federation
of Accountants) for Annual Report-2011 in Private Sector
Banks category. The bank also became the Winner- 1st
Runner up in Overall category of SAFA Best Presented
Annual Report Awards 2011. PBL received First Position
in ICMAB Best Corporate Award 2012 for Annual
Report-2011. Bangladesh Business Awards-2011 was
received from DHL-The Daily Star for Best Financial
Institution of the year 2011. The bank also achieved Bizz
2012- Inspirational Company Award from WORLDCOB
(World Confederation of Business) in recognition of
consistent growth, corporate social responsibilities (CSR)
and use of technology. All these awards testify compliance
by the bank with Bangladesh Accounting Standards and
International Accounting Standards and that adequate
information are given for the investors and shareholders to
make prudent judgment.
Corporate Sustainability
fixed deposit etc.
There is increasing recognition by the corporate bodies
Banks rated in long term in this category are adjudged to
differential elements and means for achieving greater
be of high quality, offer higher safety and have high credit

quality. This level of rating indicates a corporate entity with
a sound credit profile and without significant problems.
Risks are modest and may vary slightly from time to time
because of economic conditions. The short term rating
indicates highest certainty of timely payment. Short term
liquidity including internal fund generation is very strong
and access to alternative sources of funds is outstanding.
that Corporate Social Responsibility (CSR) can be a key

business value in this competitive world. Corporate
sustainability means delivering sustainable profit growth for
the long-term benefits of our shareholders, building
sustainable customer relationships and demonstrating to
stakeholders that our business contributes to the
environment, social and economic well being of the world
at large. Details of CSR activities of PBL are given in the
Sustainability Report chapter of this Annual Report.
Compliance Report on BSECs Notification
The Bangladesh Securities and Exchange Commission (BSEC) requires all listed companies to report on the compliance
of the conditions described in BSECs notification dated 7 August 2012 on Comply basis. The Board of Directors of the
Company has taken appropriate steps to comply with the conditions as detailed in Annexure I, II & III below:
Annexure I
a. Number of Board Meetings, attendance of Directors and their Remuneration:
Serial
No.
Name of Incumbent
Directors
01
02

Mr. M. A. Khaleque
03
(Appointed on 01.03.2012)
Remuneration
Drawn
(Tk.5000.00/ Meeting
Meeting held
Attended
Chairman
Vice Chairman
19
19
18
11
Tk.90,000.00
Tk.55,000.00
Vice Chairman
16
02
Tk.10,000.00
Position
04
Director
16
10
Tk.50,000.00
05
Director
16
08
Tk.40,000.00
Mrs. Nazma Haque
Director
13
11
Tk.55,000.00
08
09

Quazi Sirazul Islam
Mrs. Salma Huq
Director
Director
19
19
12
16
Tk.60,000.00
Tk.80,000.00
Director
17
02
Tk.10,000.00
10
Mrs. Muslima Shirin
Director
17
17
Tk.85,000.00
11
12

Mr. Md. Nader khan
Director
19
17
Tk.85,000.00
16
12
Tk.60,000.00
Director
17
16
Tk.80,000.00
Director
Director
19
19
10
18
Tk.50,000.00
Tk.90,000.00
16
Mr. Nafis Sikder

Mr. Imran Khan
Director
11
07
Tk.35,000.00
17
18
19
20
Prof. Ainun Nishat

Mr. Manzur Murshed
Depositor/Independent Director
Managing Director
19
19
19
19
13
18
18
18
Tk.65,000.00
Tk.90,000.00
Tk.90,000.00
Nil
Meeting held
Attended
06
07
13
14
15
Serial
No.
01
02
03
04
05
06
07
08
09
10
11
Name of the
resigned/deceased Directors
Director
Position
Remuneration
Drawn
Mrs. Razia Rahman
Former Director
03
--
--
Mr. Azam J Chowdhury
Former Director
03
03
Tk.15,000.00
Capt. Imam Anwar Hossain
Former Director
03
02
Tk.10,000.00
Mr. Mohammad Aminul Haque
Former Director
06
03
Tk.15,000.00
Qazi Saleemul Huq
Former Director
02
--
--
Mr. Mohammad Abdul Wahhab
Former Director
02
02
Tk.10,000.00
Mrs. Shahnaz Quashem
Former Director
03
03
Tk.15,000.00
Mr. Md. Abul Quashem
Former Director
07
04
Tk.20,000.00
Mrs. Hasina Khan
Former Director
03
03
Tk.15,000.00
Mrs. Firoja Amin
Former Director
08
08
Tk.40,000.00
Ms. Saheda Pervin Trisha
Former Director
02
02
Tk.10,000.00
(Resigned on 01.03.2012)
(died on 01.03.2012)
b. Number of Executive Committee Meetings, attendance of Directors and their Remuneration:
Remuneration
Drawn
Meeting held
Attended
Quazi Sirazul Islam
Chairman
Vice Chairman
Director
22
22
22
19
19
20
Tk.95,000.00
Tk.95,000.00
Tk.100,000.00
Mrs. Muslima Shirin
Director
19
19
Tk.95,000.00
05
Mrs. Salma Huq
Director
19
07
Tk.35,000.00
06
Director
12
02
Tk.10,000.00
07
Mr. Imran Khan
Director
09
03
Tk.15,000.00
Meeting held
Attended
Serial
No.
Name of Incumbent
Directors
01
02
03
04
Serial
No.
Name of the Resigned/

Deceased Directors
Position
Position
Remuneration
Drawn
Mr. Muhammad Abdul Wahhab
Former Director
03
03
Tk.15,000.00
02
Quazi Saleemul Huq
Former Director
03
--
--
03
Former Director
04
01
Tk.5,000.00
04
Mrs. Shahnaz Quashem

Former Director
03
02
Tk.10,000.00
05
Mr. Abul Quashem
Former Director
08
05
Tk.25,000.00
06
Mr. Nafis Sikder
Former Director
06
--
--
01
(Died on 27.06.2012)
c. Number of Audit Committee Meetings, attendance of Directors and their Remuneration:

Serial
No.
Name of the Incumbent

Directors
Remuneration
Drawn
Meeting held
Attended
Chairman
Director
08
08
08
03
Tk.40,000.00
Tk.15,000.00
Position
01
02
Prof. Ainun Nishat
03
Director
08
03
Tk.15,000.00
04
Mrs. Nazma Haque
Director
05
04
Tk.20,000.00
05
Prof. Dr.Mohammed Aslam Bhuiyan
Director
08
07
Tk.35,000.00
Meeting held
Attended
03
01
Serial
No.
01
M. A. Khaleque
Name of the Resigned

Director
Mr. Mohammad Aminul Haque
Position
Former Director
Remuneration
Drawn
Tk.5,000.00
The pattern of Shareholding along with name wise details of:

i)
Parent/Subsidiary/Associated Companies and other related parties: Nil
ii)
Shareholding of Directors:
Serial
No.
Name
Position
Annexure II
% of shares as at
31.12.2012
Chairman
2.01
Mr. M. A. Khaleque
Vice Chairman
2.12
Vice Chairman
2.00
Director
2.03
Director
2.37
Mrs. Nazma Haque
Director
2.01
Director
2.78
Quazi Sirazul Islam
Director
2.00
Mrs. Salma Huq
Director
3.13
10
Mrs. Muslima Shirin
Director
2.00
11
Director
2.00
12
Mr. Md. Nader Khan
Director
3.69
13
Mr. Imran Khan
Director
2.00
14
Director
2.70
15
Mr. Nafis Sikder
Director
2.51
Director
16
(Representative of East Coast

Shipping Lines Ltd.)
2.00
(Share holding of East Cost

Shipping Lines Ltd.)
17
Prof. Ainun Nishat
18
Mr. Manzur Murshed
0.003
19
20
iii)
Managing Director
Shareholding of CEO, CFO, Company Secretary & Head of Internal Audit
1.
Chief Executive Officer and his spouse and minor children
2.
Chief Financial Officer and his spouse and minor children
3.
Company Secretary and his spouse and minor children
4.
Head of Internal Audit and his spouse and minor children
iv)
Executives (Top five salaried person other than CEO, CFO, CS, HIA)
1.
Mr. Muhammad Yasin Ali, DMD
2.
Mr. Kanti Kumar Saha, DMD
3.
Mr. Md Tabarak Hossain Bhuiyan, DMD
4.
Quazi A.S.M. Anisul Kabir, DMD
5.
Mr. Habibur Rahman, SEVP
Annexure III
Status of Compliance with the condition imposed by the Bangladesh Securities and Exchange Commissions
Notification No. SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August, 2012:
Condition
No.
1.0
1.1
1.2
Title
Compliance status (put in the

appropriate column)
Complied
1.2 (i)
Independent director: At least 1/5th of the total

number of directors
1.2 (ii)
For the purpose of this clause independent

director means a director.
1.2 (ii) b)
1.2 (ii) c)
1.2 (ii) d)
1.2 (ii) e)
1.2 (ii) f)
1.2 (ii) g)
1.2 (ii) h)
1.2 (ii) i)
1.2 (iii)
1.2 (iv)
1.2 (v)
1.2 (vi)
Not
complied
Board of Directors
Boards size shall not be less than 5 and more than 20
1.2 (ii) a)
Remarks
(if any)
Independent director does not hold any share

or holds less than one percent (1%) shares of
total paid up capital.
Independent director does not have any other

relationship, whether pecuniary or otherwise, with the
company or its subsidiary/associated companies.
Independent director is not the shareholder,

director or officers of any member of Stock
Exchange or an Intermediary of the capital market.
Independent director is/was not the partners or
executives during preceding 3 (three) years of
concerned companys statutory audit firm.
*Currently, two depositor

directors along with one
independent director.
One vacant position will
be filled up soon.
Independent Director is not a sponsor of the

company and is not connected with the companys
Sponsor Or Director Or Shareholder who holds 1% or
more shares of the company (certain family members
are also required to comply with this requirement).
Independent directors are not the members,

directors or officers of any stock exchange.
Independent director has not been convicted

for a criminal offence involving moral turpitude.
The post of independent directors cannot

remain vacant for more than 90 days.
Independent directors is not the independent

director in more than 3 (three) listed companies.
Independent director is not convicted by a court
of competent jurisdiction as a defaulter in
payment of any loan to a bank or a non-bank
financial institution (NBFI).
Such appointment is
to be approved in the
ensuing 18th AGM
The independent director shall be appointed by

the Board of Directors and approved by the
Shareholders in the AGM.
The Board shall lay down a Code of Conduct of

all Board Members and Annual Compliance of
the Code to be recorded.
The tenure of office of an Independent

Directors shall be for a period of 3 (three) years
which may be extended for 1 (one) term only.
No such vacancy
Formal code of conduct has
been clearly spelled out
and approved by the board
Condition
No.
1.3
1.3 (i)
1.3 (ii)
1.3 (iii)
1.4

appropriate column)
Title
Complied
Independent director shall be knowledgeable

individual with integrity who is able to ensure
required compliance.
In special cases above qualification may be

relaxed by the Commission
N/A
The independent director must have at least 12

(twelve) years of corporate management/
professional experiences along with other requisites.
Separate Chairman and CEO and their clearly

defined roles and responsibilities.
Directors Report to Shareholders
1.5 (i)
Industry outlook and possible

developments in the industry
1.5 (ii)
Segment-wise or product-wise performance.
future
Risks and concerns
1.5 (iv)
Discussion on cost of goods sold, gross profit

margin and net profit margin
1.5 (v)
Discussion on continuity of any Extra-Ordinary

gain or loss
1.5 (vi)
1.5 (vii)
1.5 (viii)
1.5 (ix)
1.5 (x)
1.5 (xi)
1.5 (xii)
1.5 (xiii)
1.5 (xiv)
Not
complied
Qualification of Independent Director (ID)
1.5
1.5 (iii)
Remarks
(if any)
Basis for related party transaction- a statement

of all related party transactions should be
disclosed in the annual report
Utilization of proceeds from public issues, right
issues and/ or through any others instruments.
An explanation if the nancial results
deteriorate after the company goes for IPO,
RPO, Rights Offer, Direct Listing etc.
If signicant variance occurs between Quarterly
Financial performance and Annual Financial
Statements the management shall explain
about the variance on their Annual Report.
Remuneration
to
directors
including
independent directors.
The nancial statements prepared by the
management of the company present fairly its
state of affairs, the results of its operation, cash
ows and changes in equity.
Proper books of account of the company have
been maintained.
Appropriate accounting policies have been
consistently applied in preparation of the nancial
statements and that the accounting estimates are
based on reasonable and prudent judgment.
International
Accounting
Standards
(IAS)/Bangladesh
Accounting
Standards
(BAS)/International
Financial
Reporting
Standards (IFRS) /Bangladesh Financial
Reporting Standards (BFRS), as --applicable in
Bangladesh, have been followed in preparation
of the nancial statements and any departure
there-from has been adequately disclosed.
N/A
PBL being a bank, cost of

interest expenses and
GP% alongwith profit
margin were discussed
PBL does not have such
gain or loss
During 2012 there were no

public or right issue of shares
N/A
N/A
Condition
No.
1.5 (xv)
1.5 (xvi)
1.5 (xvii)
1.5 (xviii)
1.5 (xix)
Title
The system of internal control is sound in design and
has been effectively implemented and monitored.
There are no signicant doubts upon the

company's ability to continue as a going concern.
Signicant deviations from the last years operating
results of the company shall be highlighted and
the reasons thereof should be explained.
Key operating and nancial data of at least

preceding 5 (ve) years shall be summarized.
If the company has not declared dividend (cash or

stock) for the year, the reasons thereof shall be given.

appropriate column)
Complied
Remarks
(if any)
Not
complied
N/A
1.5 (xx)
The number of Board meetings held during the year

and attendance by each director shall be disclosed.
1.5 (xxi)
The pattern of shareholding shall be reported to disclose the aggregate number of shares
(along with name wise details where stated below) held by:
1.5 (xxi) a) Parent/Subsidiary/Associated Companies and

other related parties (name wise details);
1.5 (xxi) b) Directors, Chief Executive Ofcer, Company

Secretary, Chief Financial Ofcer, Head of
Internal Audit and their spouses and minor
children (name wise details);
1.5 (xxi) c) Executives (top five salaried employees of the
company other than stated in 1.5(xxi)b);
1.5 (xxi) d) Shareholders holding ten percent (10%) or more

voting interest in the company (name wise details).
1.5 (xxii)
In case of appointment/re-appointment of a Director the Company shall disclose the following

information to the Shareholders:
1.5 (xxii) a) a brief resume of the Director;

1.5 (xxii) b) Nature of his/her expertise in specific functional areas.
1.5 (xxii) c) Names of companies in which the person also
holds the directorship and the membership of

committees of the board.
2.0
Chief Financial Officer, Head of Internal Audit & Company Secretary
2.1
Appointment of CFO, Head of Internal Audit

and Company Secretary and their clearly
defined roles, responsibilities and duties.
2.2
Attendance of CFO and the Company

Secretary at Board of Directors meeting
Audit Committee:
3 (i)
Audit Committee shall be the sub-committee of

the Board of Directors.
3 (ii)
The Audit Committee shall assist the Board of

Directors in ensuring that the financial
statements reect true and fair view of the state
of affairs of the Company and in ensuring a
good monitoring system within the business.
Condition
No.
Title

appropriate column)
Complied
Remarks
(if any)
Not
complied
3 (iii)
The Audit Committee shall be responsible to

the Board of Directors. The duties of the Audit
Committee shall be clearly set forth in writing.
3.1
Constitution of the Audit Committee
3.1 (i)
The Audit Committee shall be composed of at

least 3 members.
3.1 (ii)
Constitution of Audit Committee with Board

Members including one Independent Director.
3.1 (iii)
All members of the Audit Committee should be

nancially literate and at least 1 (one)
member shall have accounting or related
nancial management experience.
3.1 (iv)
Filling of Casual Vacancy in Committee
3.1 (v)
The Company Secretary shall act as the

secretary of the Committee.
3.1 (vi)
The quorum of the Audit Committee meeting

shall not constitute without at least 1
independent director.
3.2
Chairman of the Audit Committee
3.2 (i)
Chairman of the Audit Committee shall be an

Independent Director.
3.2 (ii)
Chairman of the audit committee shall remain

present in the Annual General Meeting (AGM).
3.3
Role of Audit Committee
3.3 (i)
Oversee the nancial reporting process.
3.3 (ii)
Monitor choice of accounting policies and principles.
3.3 (iii)
Monitor Internal Control Risk management process.
3.3 (iv)
Oversee hiring and performance of external auditors.
3.3 (v)
Review along with the management, the

annual nancial statements before submission
to the board for approval.
3.3 (vi)
Review along with the management, the

quarterly and half yearly Financial Statements
before submission to the Board for approval.
3.3 (vii)
Review the adequacy of internal audit function.
3.3 (viii)
Review statement of signicant related party

transactions submitted by the management.
3.3 (ix)
Review Management Letters/ Letter of Internal

Control weakness issued by statutory auditors.
3.3 (x)
When money is raised through Initial Public

Offering (IPO)/ Repeat Public Offering
(RPO)/Rights Issue the company shall disclose
to the Audit Committee about the uses/
applications of funds by major category (capital
expenditure, sales and marketing expenses,
N/A
N/A
There were no such vacancy
Chairman of the audit

committee is also a
depositor director
Chairman of the audit
committee will be present
in the ensuing AGM
Condition
No.
Title

appropriate column)
Complied
Remarks
(if any)
Not
complied
working capital, etc.), on a quarterly basis, as a part

of their quarterly declaration of financial results.
3.4.
Reporting of the Audit Committee
3.4.1
Reporting to the Board of Directors
3.4.1 (i)
The Audit Committee shall report on its

activities to the Board of Directors.
3.4.1 (ii)
The Audit Committee shall immediately report

to the Board of Directors on the following
ndings, if any:
3.4.1 (ii) a) Report on conflicts of Interests.
3.4.1 (ii) b) Suspected or presumed fraud or irregularity or

material defect in the internal control system;
3.4.1 (ii) c) Suspected infringement of laws, including

securities related laws, rules and regulations;
NIL
3.4.1 (ii) d) Any other matter which shall be disclosed to

the Board of Directors immediately.
NIL
Communicated to
regulator duly
3.4.2
Reporting of anything having material financial

impact to the Commission.
NIL
3.5
Reporting to the Shareholders and General Investors.
NIL
External/Statutory Auditors should not

be engaged in:
4 (i)
Appraisal or valuation services or fairness opinions.
4 (ii)
Financial information systems design and

implementation.
4 (iii)
Book-keeping or other services related to the

accounting records or nancial statements.
4 (iv)
Broker-dealer services.
4 (v)
Actuarial services.
4 (vi)
Internal audit services.
4 (vii)
Any other service that the Audit Committee

determines.
4 (viii)
No partner or employees of the external audit

firms shall possess any share of the company
they audit at least during the tenure of their
audit assignment of that Company.
Subsidiary Company
5 (i)
Provisions relating to the composition of the

Board of Directors of the holding company shall
be made applicable to the composition of the
Board of Directors of the subsidiary company.
5 (ii)
At least 1 (one) independent director on the Board of

Directors of the holding company shall be a director
on the Board of Directors of the subsidiary company.
Condition
No.
Title

appropriate column)
Complied
Remarks
(if any)
Not
complied
They have reviewed financial Statements for

the year and that to the best of their knowledge
and belief:
6 (i) a)
These financial statements do not contain any

materially untrue statement or omit any
material fact or contain statements that might
be misleading.
6 (i) b)
These financial statements together present a

true and fair view of the companys affairs and
are in compliance with existing accounting
standards and applicable laws.
6 (ii)
There are, to the best of knowledge and belief,

no transactions entered into by the company
during the year which are fraudulent, illegal or
violation of the companys code of conduct.
Reporting and Compliance of Corporate

Governance:
7 (i)
The company shall obtain a Certificate from a

Professional
Accountant/Secretary
(CA/CMA/CS) regarding compliance of
conditions
of
Corporate
Governance
Guidelines of the Commission and shall send
the same to the shareholders along with the
Annual Report on a yearly basis.
7 (ii)
The directors of the company shall state, in

accordance with the Annexure attached, in the
directors' report whether the company has
complied with these conditions.
5 (iii)
The minutes of the Board meeting of the

subsidiary company shall be placed for review
at the following Board meeting of the holding
company.
5 (iv)
The Minutes of the respective Board meeting

of the holding company shall state that they
have reviewed the affairs of the Subsidiary
Company also.
5 (v)
The Audit Committee of the holding company

shall also review the Financial Statements, in
particular the investments made by the
Subsidiary Company.
Duties of Chief Executive Officer (CEO) and

Chief Financial Officer (CFO):
6 (i)
Annexure-IV
Status of Compliance of Bangladesh Banks guidelines for Corporate Governance (BRPD circular no 16 dated 24.07.2003)
Sl
No.
1.
Compliance
Status
Particulars
Responsibilities and authorities of the board of directors:
(a) Work-planning and strategic Management:
Complied
(b) Lending and risk management:
Complied
(c) Internal control management:
Complied
(d) Human resources management and development:
Complied
(e) Financial management:
Complied
i) The board shall determine the objectives and goals and to this end shall chalk out strategies and
work-plans on annual basis. It shall specially engage itself in the affairs of making strategies
consistent with the determined objectives and goals and in the issues relating to structural change
and reorganization for enhancement of institutional efficiency and other relevant policy matters. It
shall analyze/monitor at quarterly rests the development of implementation of the work-plans.
ii) The board shall have its analytical review incorporated in the Annual Report as regard the success/
failure in achieving the business and other targets as set out in its annual work-plan and shall
apprise the shareholders of its opinions/recommendations on future plans and strategies. It shall
set the Key Performance Indicators (KPIs) for the CEO and other senior executives
and have it evaluated at times.
(i) The policies, strategies, procedures etc. in respect of appraisal of loan/investment proposal, sanction,
disbursement, recovery, reschedulement and write -off thereof shall be made with the boards approval
under the purview of the existing laws, rules and regulations. The board shall specifically distribute the
power of sanction of loan/investment and such distribution should desirably be made among the CEO
and his subordinate executives as much as possible. No director, however, shall interfere, directly or
indirectly, into the process of loan approval.
(ii) The board shall frame policies for risk management and get them complied with and shall monitor at
quarterly rests the compliance thereof.
The board shall be vigilant on the internal control system of the bank in order to attain and maintain
satisfactory qualitative standard of its loan/investment portfolio. It shall review at quarterly rests the
reports submitted by its audit committee regarding compliance of recommendations made in internal
and external audit reports and the Bangladesh Bank inspection reports.
(i) Policies relating to recruitment, promotion, transfer, disciplinary and punitive measures, human
resources development etc. and service rules shall be framed and approved by the board. The
chairman or the directors shall in no way involve themselves or interfere into or infiuence over any
administrative affairs including recruitment, promotion, transfer and disciplinary measures as executed
under the set service rules. No member of the board of directors shall Compled be included in the
selection committees for recruitment and promotion to different levels. Recruitment and promotion to
the immediate two tiers below the CEO shall, however, rest upon the board. Such recruitment and
promotion shall have to be carried out complying with the service rules i.e., policies for recruitment and
promotion.
(ii) The board shall focus its special attention to the development of skills of banks staff in different fields
of its business activities including prudent appraisal of loan/investment proposals, and to the adoption
of modern electronic and information technologies and the introduction of effective Management
Information System (MIS). The board shall get these program incorporated in its annual work plan.
(i) The annual budget and the statutory nancial statements shall finally be prepared with the approval
of the board. It shall at quarterly rests review/monitor the positions in respect of banks income,
expenditure, liquidity, non-performing asset, capital base and adequacy, maintenance of loan loss
provision and steps taken for recovery of defaulted loans including legal measures.
(ii) The board shall frame the policies and procedures for banks purchase and procurement activities
and shall accordingly approve the distribution of power for making such expenditures. The maximum
possible delegation of such power shall rest on the CEO and his subordinates. The decision on matters
relating to infrastructure development and purchase of land, building, vehicles etc. for the purpose of
banks business shall, however, be adopted with the approval of the board.
Sl
No.
Particulars
(f) Formation of supporting committees:
For decision on urgent matters an executive committee, whatever name called, may be formed with
Compliance
Status
Complied
the directors. There shall be no committee or sub-committee of the board other than the executive
committee and the audit committee. No alternate director shall be included in these committees.
(g) Appointment of CEO:
The board shall appoint a competent CEO for the bank with the approval of the Bangladesh Bank.
2.
Complied
Responsibilities of the chairman of the board of directors:

(a) As the chairman of the board of directors (or chairman of any committee formed by the board or any
director) does not personally possess the jurisdiction to apply policymaking or executive authority, he
shall not participate in or interfere into the administrative or operational and routine affairs of the bank.
Complied
(b) The chairman may conduct on-site inspection of any bank-branch or nancing activities under the
purview of the oversight responsibilities of the board. He may call for any information relating to banks
operation or ask for investigation into any such affairs; he may submit such information or investigation
report to the meeting of the board or the executive committee and if deemed necessary, with the
approval of the board, he shall effect necessary action thereon in accordance with the set rules through
the CEO. However, any complaint against the CEO shall have to be apprised to Bangladesh Bank
through the board along with the statement of the CEO.
(c) The chairman may be offered an of ce-room, a personal secretary/assistant, a telephone at the
of ce and a vehicle in the business-interest of the bank subject to the approval of the board.
3.
Responsibilities of the adviser:
The adviser, whatever name called, shall advise the board of directors or the CEO on such issues only
for which he is engaged in terms of the conditions of his appointment. He shall neither have access to
the process of decision-making nor shall have the scope of effecting executive authority in any matters
Complied
of the bank including nancial, administrative or operational affairs.

4.
Responsibilities and authorities of the CEO:
The CEO of the bank, whatever name called, shall discharge the responsibilities and effect the
authorities as follows:
(a) In terms of the nancial, business and administrative authorities vested upon him by the board, the
CEO shall discharge his own responsibilities. He shall remain accountable for achievement of nancial
and other business targets by means of business plan, ef cient implementation thereof and prudent
administrative and nancial management.
(b) The CEO shall ensure compliance of the Bank Companies Act, 1991 and/or other relevant laws and
regulations in discharge of routine functions of the bank.
(c) The CEO shall report to Bangladesh Bank of issues violative of the Bank Companies Act, 1991 or
of other laws/regulations and, if required, may apprise the board post facto.
(d) The recruitment and promotion of all staff of the bank except those in the two tiers below him
shall rest on the CEO. He shall act in such cases in accordance with the approved service rules on
the basis of the human resources policy and sanctioned strength of employees as approved by the
board. The board or the chairman of any committee of the board or any director shall not get involved
or interfere into such affairs. The authority relating to transfer of and disciplinary measures against the
staff, except those at one tier below the CEO, shall rest on him, which he shall apply in accordance with
the approved service rules. Besides, under the purview of the human resources policy as approved by
the board, he shall nominate of cers for training etc.
Complied
To us, the path to

sustainability is green.
Our endevour to protect
green will prevail.
Sustainability
Report
Corporate sustainability is a business approach that
creates long-term consumer and employee value by
not only creating a green strategy aimed towards the
natural environment, but taking into consideration every
dimension of how a business operates in the social,
cultural, and economic environment. It also formulates
strategies to build a company that fosters longevity
through transparency and proper employee development.
In respect of corporate sustainability, PBL has focused on
following specific key areas of:
Nation building
Enhancement of market place
Promotion of the work place
Support to the community
Protection of environment
Nation Building
The best way to support the country is to do something
better in the area of operation. PBL constantly showed
strong performance which has helped the stability of the
banking sector. The local and international recognition of
the published accounts has helped to establish integrity
of the countrys financial system. PBL will continue to
play the pivotal role in this regard. Agriculture and SME
financing have become keys to economic growth of the
country and without opening up of the financial sector to
semi urban and rural areas, the projected growth of the
economy will not be achievable. PBL has given strong
focus in these areas which are evident from the growth rate
achieved during the year. Public service is still inefficient
and as such emphasis is also given in infrastructure
development which includes financing for communication,
telecommunication, bridge, roads and highways etc. This
will have positive impact in national growth.
Contribution to National Exchequer
PBL has contributed significantly to the governments
effort in collection of revenue. As per law, the bank deducts
at sources income taxes, VAT and excise duty from
various payments and services and deposits the same
to government exchequer. Besides, the bank also pays
income tax on its earnings. Total payment to government
exchequer during 2012 is depicted below:
Particulars
Payment of income tax on banks
earnings
Income tax, VAT and excise duty
deducted at source from various
payment and services by the
bank
Total payment
Taka in million
2012
1,992.69
2011
2,761.31
2,865.19
1,842.41
4,857.88
4,603.72
Supplier payment policy

PBL always adheres to well set payment policies for all
suppliers and explains them in details about the payment
method and system and reviews process before providing
work order. Bills are paid according to the payment terms
and VAT and other withholding taxes are deducted from
bills as per law. As of date of this report, there is no legal
case filed by the bank or filed against the bank by any
supplier.
Enhancement of Market Place
The best published accounts award of ICAB, ICMAB
and SAFA over the years for the published reports and
accounts is the testimony of good governance, compliance
with IAS, BAS and other regulatory requirements. Market
discipline is gradually being established as more banks
are now encouraged to give adequate information to
the shareholders and their compliance status is also
improving.
Capacity Development in the Banking and Financial
Sector
PBL believes that professional development of the people
working in the banking and financial sector will immensely
help to readdress various risk elements involved in
banking transactions. With that aim in view the bank took
some unique initiatives which were appreciated by the
participants. Some of the initiatives are given below:
During the year 2012 Islamic Banking Division arranged
Ifter Mahfils and discussion meetings and held formal and
informal discussions on various Shariah issues, Islamic
banking activities and importance of the Holy Ramadan.
Members of Shariah Council, eminent thinkers on Islamic
Ideology and customers participated in the discussion
meeting.
The bank as per agreement with the Bangladesh Institute
of Bank Management (BIBM), the apex body of the training
institutes for the bankers in Bangladesh, sponsors the
prize money given to the students securing first, second
and third position in the Masters in Bank Management
(MBM) examination of the institute.
PBL encourages the participation of graduates in the

business processes of the bank through its internship
program. This initiative of the bank allows fresh and
meritorious graduates from Business Schools and
Universities to get on hand experience about the different
processes in banking. These experiences help them to
plan their career path more effectively.
new positions initially. PBL has given full paid internship

opportunity to 385 students from different universities.
The bank strongly encourages and facilitates the females
to take part in workforce and to take leadership.
Percentage of female employees
PBL sponsored a couple of learning events like workshops/

conferences organized by renowned educational
institutions of the country.
Promotion of the work place
Human Resources
PBL is working with a vision of converting human resources
into human capital through appropriate knowledge, skills,
abilities and personal attribution. A healthy environment
has been created where employees enjoy working with
pride. Believing that the human resources are main
elements behind the success and future sustainability
of the bank, the bank is developing and motivating the
workforce with contemporary HR policies and attractive
benefits. The bank is not only offering a job but also a
learning, challenging and rewarding career.
The HR Division had a focus to establish PBL as the best
employer of choice in the banking sector by creating an
attractive, inclusive and safe environment that recognizes
the talents and encourages employees to take ownership
for their professional and personal growth. HR Division
has been coming up with relentless recommendations
and contributions in each stage of employee life cycle
starting from hire to retire. The Division has undertaken
an initiative to align its core HR functions including but
limiting to attracting, developing, retaining talents with
the strategy of the bank. The individual sections in the
Division i.e., recruitment, compensation, separation,
mobilization, discipline and organization development
have proficiently carried out their roles in transforming the
human resources into human capital.
20%
19%
18%
2010
2011
Total Workforce by Age Group

Age Group
2010
Above 55
45-55
35-45
25-35
Below 25
Total
From inception, the bank is successfully developing in

bringing diversity in workforce in context of age, gender,
ethnicity and locality. There is an increasing trend in
workforce along with the business and span of service.
With 130 branches, 3 off-shore banking units and 5
subsidiaries spread across home and abroad, the bank is
a proud employer of a diversified pull of people. The bank
has opened 11 new branches during 2012 creating 100
29
151
566
1,325
68
2,139
2011
35
162
631
1,401
63
2,292
2012
41
182
786
1,498
37
2,544
Recruitment and Selection

The recruitment and selection unit of HR Division has
carried out a massive talent acquisition during 2012. The
bank strongly believes that its human resources are the
driving force behind the financial excellence. Along with
developing an internal pool of competent workforce, HR
Division also ensures that there is steady flow of skilled
and experienced employees from the job market who can
deal with the new challenges of time. HR also contributes
in the management and leadership development in
every area of the bank with sourcing the best potential
candidates and developing a synergy between the
employees and the bank.
Here are some of the highlights and major achievements

of HR Division in 2012:
Diversity in workforce
2012
Recruitment in 2012
28%
72%
Fresh Entrance (Management Trainee and Trainee Assistant)

Lateral Entrance
Instead of simply filling up the employee gap in certain
positions of the bank, the recruitment and selection team
emphasized on the Best Fit philosophy that can assure
placing right people in right place at the right time. In line
with these, the HR Division has facilitated the recruitment
for a total of 317 including both fresh and lateral candidates
in 2012.
Recruitment trend
318
260
2011
2012
Training, Learning and Development

PBL has created a learning environment through its
robust on the job and classroom training facilities. To
develop the fresh and young officers with banking norms
and knowledge and keep the existing pool updated with
contemporary practices, the bank has a range of Basic and
Advanced level Banking, IT, Soft Skill and Management &
Leadership Development trainings and workshop. These
are arranged and provided from banks HR Training and
Development Center (HR-TDC).
HR-TDC arranged 19 professional training courses and
88 workshops and seminars during the year 2012 where
2,250 employees of different grades participated.
No. of participants in different types of training by HR-TDC
Foundation, 245
IT, 662
Leadership
Development, 41
Core
Banking, 1332
Soft Skill, 463
Specialized, 40
A good number of employees of the bank were also sent to

attend various training, workshops and seminars arranged
by different training academies in home and abroad.
Sl.
Title
No.
A. Training Course
01 Foundation Training Course
for MT
for TA (General)
for TA (Cash)
04 Advanced International Trade
Payment and Finance
Advanced Credit Management
05
(ACM)
06 T-24 System
Total
B. Workshops
01 Reporting System of SBS1, SBS-2 & SBS -3 to
Bangladesh Bank
02 Legal Aspects of Securities
and Documentation
03 Green Banking
04 Bangladesh Electronic Fund
Transfer Network (BEFTN)
05 IT Audit & Security and
Prevention of Fraud in Banks
06 Altitude to create awareness
07 Supply Chain Management
08 Preparation of Rationalized
Input Templates (RIT)
09 Classification of non-performing
loans & advances
10 Office Automation Software
11 Retail Banking and Consumer
Finance
12 Laws, Regulations & Practice
in Banks
13 Risk Based Audit, Internal
Control & Compliance and
Supervision
14 General Banking Operation
15 Credit Risk Grading (CRG)
System in Banks
16 Islamic Banking Operations &
Finance
17 Orientation Program
18 SBS-3 and SME Data
Reporting
19 Centralized Retail Banking
System (RSys)
20 UCPDC 600 and related ICC
Publications
21 Cash Management &
Detection, Disposal of Forged
and Mutilated Notes
22 Priority Banking
21 Rules and Procedures in
Foreign Remittance
22 ADC products and operational
procedure
23 Dual card payment procedure
24 Basel-II: Implication & BaselIII and Stress Testing
25 Ethics, Etiquette & Manner in
Banks
26 Leadership and Negotiation Skills
Total
Grand Total (A+B)
Number
Total
participants
36
69
101
18
60
10
19
143
427
49
67
3
1
145
30
81
12
1
1
238
40
12
38
10
2
200
86
35
37
2
1
75
22
20
2
4
39
122
10
110
20
22
1
1
28
36
113
1
1
36
51
30
1
68
87
41
1,823
2,250
No. of participants sent outside for training

Abroad, 28
Bangladesh instute
of Bank Management 15
other TrainingInstitute, 92
Bangladesh Bank training

Academy, 32
Mobilization of Human Resources

With continuous effort of HR Division, the bank has created
a strength based culture where right people are placed at
right place. To comply with the policy of the Bangladesh
Bank to transfer the employees who are more than 3
years in the same branch, the bank has already prepared
a transfer planning and rolling it out very meticulously.
Employee Code of Ethics and Business Conduct
'Prime Bank Employee Code of Ethics and Business Conduct'
is a framework of ethical behavior for all the employees of
the organization. Following are the key principles of 'Prime
Bank Code of Ethics and Business Conduct':
Trainees with Outstanding Performance

(TOP) Award will be given to the top performers
in foundation training program.
Around the Year Appreciation Award (AAA) is
an informal and non monetary recognition which
will be given to employees for performing any job
well done any time during the year.

Service Benefit
The bank is maintaining a welfare fund taking contribution
from both employees and the bank to support the employees
and their families on the ground of medical, maternity,
retirement, disability and death claim. In 2012, a total of
Tk 15.02 million was sanctioned to support 314 employees
on the above mentioned ground. Contributory Provident
Fund Facility, Gratuity Fund, Retirement Benefits, Leave
Fare Assistance, Risk Allowance for Tellers, Technical
Allowance, two Festival Bonuses, Incentive / Performance
Bonus, Employee House Building Loan Scheme, Employee
Car Scheme for Executives, Employee Consumer Credit
Scheme Loan, Professional Qualification Achievement
Monetary Award, Scholarship or monetary allowance for
meritorious children of employees through benevolent fund
are mentionable service benefits of the bank.
Service to customers with uncompromising

integrity, utmost respect, unwavering responsibility and
dedicated citizenship;
Protect privacy and confidentiality of customer information;
Prevent money laundering and fraud;
Demonstrate workplace respect.
Organization Development
Reward and Recognition Program for Human Resources
After incorporation, the big achievement of OD was

planning a comprehensive HR software called HR
Connect and developing its first phase which will be a
platform to avail HR services online in smarter and easier
way. It will automate various HR jobs to obtain greater
efficiency. It will also help the management with smart
MIS in strategic HR planning.
Provide
PBL feels that meaningful rewards and recognition provide

an effective way of raising morale and encouraging higher
levels of performance in both individual and team level.
To acknowledge and inspire outstanding performers, to
cultivate leaders who will continue to demonstrate greater
business performance and to set an example for others
in achieving similar performance, HR Division revised the
rewards and recognition policy in 2012 creating following
cash and non-cash awards for every calendar year:
The Chairmans Star of the Stars Award (CSS)
will be given to one special employee who has
delivered exceptional and beyond expectation
performance on an ongoing basis in revenue
earning or cost saving, innovation and leadership.
It is the most prestigious award provisioned for
Banker of the Year.
CEOs Banker with Exceptional Service Traits
(BEST) Award will be given to three exceptional
employees who marvel in service excellence and
constantly satisfy the customer of the bank.
Outstanding Recovery Initiative (ORI) Award
will be given to three exceptional employees for
applying best effort in recovering classified loans.
Commendable Branch Performance Award
(CBPA) is intended to inspire the branches based
on the core business performance indicators.

HR Division is continuing with the activities of Organization

Development with special emphasis in 2012. OD is
contributing towards achieving the Mission and Vision of
the bank through a planned intervention in HR policies,
processes and operations.
In the upcoming years, OD will work more in automation

and process development so that human beings and
human resources management system live and work
together for the mutual benefits. It will also concentrate on
employee engagement and motivation to make the bank
as Employer of Choice.
Major Achievement in 2012
The HR Division of the bank has achieved a number of
milestones in 2012 and aims for higher targets in 2013.
With a view to ensure excellence in every aspects of
the employees of the bank, the HR team has been
continuously renovating its policies, procedures and
practices which ensure the best interest of the bank
and the employees. In line with the Mission, Vision and
Guiding Values of the Bank, the HR Division made their
best efforts to create and sustain a dynamic workforce
and also a vibrant working environment.
Following are the mentionable success of HR Division
during 2012:

Setting up new organogram in Centralized model;

of some of the HR Policies such as
Reward & Recognition Policy, Car Policy, Mobile
Phone Policy, Gratuity Policy etc.;
Developing Management Trainee Development Policy;
Developing the first phase of HR software.
Revision
HR Plan and Priorities for 2013

HR Division has planned 2013 with full of challenges and
initiatives. To build an employee centric HR culture with
most automated processes and best practices, HR will
take initiatives to review the existing policies and introduce
contemporary thoughts.
Following are the priorities of HR for 2013:
To
bring performance measurement and performance

based incentive related activities of HRM under
automation;
Training need analysis process development and
automation;
Training and development roadmap preparation;
Service benefit improvement;
Improvement of HR policies and procedures;
Adoption of thoughts of HR Accounting System;
Employee Engagement and Employer Branding
initiative taking.
Human Resource Accounting in PBL
Human resource Accounting is the process of identifying
and reporting the investments made in the human
resources of an organization that are presently not
accounted for in the conventional accounting practices.
Accounting of human resources is nothing but the
valuation of human asset in monetary terms and the
process of their recording and disclosure.
HR Accounting has some limitations which are:
There is no proper, clear-cut and specific

procedure or guidelines for finding costs and
value of human resources of an organization. The
systems which are being adopted have certain
drawbacks. Moreover, there is no universally
accepted method of the valuation of human
resources.
The period of existence of human resource
is uncertain and hence valuing them under
uncertainty in future seems to be unrealistic.
Empirical evidence is yet to be found to support
the hypothesis that HRA as a tool of management
facilitates better and effective management of
human resources.
As human resources are incapable of being
owned, retained, and utilized, unlike the physical
assets, there is a problem for the management to
treat them as assets in the strict sense.
In spite of all its significance and necessity, the Tax
Laws do not recognize human beings as assets.
Considering the above limitations and as like as most

of the institutions PBL has not yet practiced Humane
Resource Accounting in the real sense. However, to
better understanding the impact of recruitment, training,
compensation and other employee benefits, the bank
calculates the ratios mentioned below which are considered
with due importance in the decision making process.
Taka in million
Ratios related to HRA
Salary cost per employee
2012
1.17
2011
0.81
Operating cost per employee
1.94
1.80
Operating income per employee
5.30
5.04
Profit before provision per employee
3.36
3.24
Profit before tax per employee
2.10
2.95
Salary cost as percentage of operating cost 54.33
50.02
Salary cost as percentage of operating income 19.90
17.88
However, PBL has the plan for adoption of thoughts of HR

Accounting System in 2013.
Support to the Community
PBL established Prime Bank Foundation and
contributes equal to 4 percent of net profit before tax
(Tk 213.41 million in 2012) as donation to this foundation
for undertaking projects in health and education sector.
PBL has strengthened the management capacity of its
Foundation, the corporate responsibility wing, having
staffed with right kind of human resources required to
reinforce its commitment to the society. Aligning with its
long term goal, the Prime Bank Foundation has chalked
out a number of long and short terms projects focusing
more on health and education to be rolled out over a
period of next 3-5 years (details of activities are given in
Prime Bank Foundation chapter of this report).
Apart from the CSR activities taken by Prime Bank
Foundation, the bank conducted various CSR activities
during the year 2012. The highlights of some of the
activities taken during the reporting period are as follows:
Support to Martyr Family
The loss of lives in the BDR carnage shocked the entire
nation. PBL took responsibility to support two such
families for Tk 0.48 million per year for ten years starting
from 2009.
Education
Sponsorship of Tk 0.50 million to Science Olympiad
organized by Bangladesh Academy of Science;
Sponsorship of Tk 0.30 million to Prime BankDhaka College Science Expo 2012 organized by
Dhaka College Science Club;
Sponsorship of Tk 0.30 million to Alumni Night
2012 of Brac University Alumni Association;
Sponsorship of Tk 0.04 million to MBM Day and
Job Fair 2012 organized by Bangladesh Institute
of Bank Management;

Donation of Tk 0.30 million to Sirajul Ulum Arabia

Madrasa;
Sponsorship of Tk 0.03 million to Shipyard

School and College, Khulna;
Sponsorship of Tk 0.40 million to Prime BankNDDC (Notre Dame College Debate Club) 24th
National Debate Competition;
Sponsorship of Tk 0.20 million to Inter University /

School Debate Competition organized by London
College of Legal Studies.
Donation of Tk 0.50 million to a cancer patient for
of Ms Sigma Haque;

of
Tk
0.03
million
to
Tennis
Sponsorship of Tk 0.30 million to Jatio Rabindra

Sponsorship of Tk 0.05 million to 17th Anniversary
15th International Rating Chess Tournament

organized by Leonine Chess Club;
Sponsorship of Tk 0.55 million to Junior Golf Team

of Kurmitola Golf Club for Junior Championship
in England.
Sponsorship of Tk 0.51 million for printing and distribution

Sponsorship of Tk 0.05 million to a program of
News Broadcasters Association of Bangladesh;
Sponsorship of Tk 0.02 million to Chaudanga

Zilla Samity;
Sponsorship of Tk 0.10 million to FBBCI for

arranging seminar and dinner party;
Sponsorship of Tk 0.02 million to 1st National

Inter School Freshers Champion Debaters
Sponsorship of Tk 3.78 million to Prime Bank

Cup Golf Tournament at Kurmitola Golf Club;
Donation of Tk 0.05 million to Bengali New Year
of 5,000 pcs books on Bangladesh economy;
Leonine Chess Club

Sponsorship of Tk 0.47 million to Prime Bank
Sponsorship of Tk 0.41 million to International
Bangladesh;
Sponsorship of Tk 0.22 million to Prime Bank 7th

International Womens Tournament organized by
Canadian
Celebration-1419 of News Presenters Society of
Sponsorship of Tk 0.30 million to Banskhali

Shadhinota Gold Cup Football Tournament-2012;
by
Bangla Festival & Book Fair-2012;

Club;
organized
of Chittagong Stock Exchange;
Tournament-2012 organized by Naogaon Tennis
2012
Sangeet Sammilon;

Sponsorship of Tk 0.30 million to Pallima

Donation
Sponsorship of Tk 0.62 million to Canada

Chamber of Commerce;
Donation of Tk 0.20 million to a cardiac patient for
Sangshad Badminton Tournament;
Sponsorship of Tk 1.00 million to a cultural
Showcase

Games & Sports
Sponsorship of Tk 0.05 million to Prime Bank Kite

Festival-2012;
Donation of Tk 0.03 million to a kidney patient for
his treatment.
Sponsorship of Tk 0.03 million to an Art exhibition
program organized by all community club;
her treatment;

Sponsorship of Tk 0.10 million to a seminar on

history and tradition;
his treatment;

Sponsorship of Tk 10.00 million to Bangla

Academy Ekusha Book Fair 2012;
Health

Arts & Culture
League-2012;

Sponsorship of Tk 0.01 million to Sandhani for

Art competition;
Sponsorship of Tk 3.50 million to Hirok Joyonti of

Dhaka University;
Sponsorship of Tk 3.00 million to Positioning

Bangladesh, branding for business;
Sponsorship of Tk 0.64 million to organize

remittance based star night at Doha;
Sponsorship of Tk 0.45 million to Bijoy Parbone Utshab;
Sponsorship of Tk 2.00 million to 31st celebration

of Dhaka Club;
Launching of Prime Bank Cricket Club (PBCC)
Sponsorship of Tk 0.10 million to Bangla Darpan to

pay lifelong honor to language activist Dr. Abdul Matin
Disaster Management

Distribution of blankets of Tk 5.08 million to the

winter distressed people;
Donation of Tk 0.50 million to the fire affected

workers of Tazreen Garments.
Distribution of blankets to the winter distressed people
Others (for benefits of mass people)

Sponsorship of Tk 0.10 million for the top

3 students of Bangladesh Institute of Bank
Management (BIBM) in the Masters in Bank
Management (MBM) examination;
Sponsorship of Tk 0.30 million to Desh TV to

organize a program on budget discussion;
Donation of Tk 2.50 million to Proyash, an

institute working for betterment of Handicapped
children, patronized by Bangladesh Army;
Sponsorship of Tk 0.10 million to Chittagong Boat Club

to inaugurate the club house and passenger vessel;
Tk 0.34 million for setting public addressing
system at Chittagong Mohila Samity school;
Sponsorship of Tk 0.10 million to marine academy
for best cadet;
Tk 0.75 million for distribution of 5 formalin dehydrate machine to FBCCI;

Tk 2.50 million for Jessore press club construction;
Tk 0.10 million for financial assistance to
Bangladesh Bannya Prani Sheba Foundation.
Primary health care service of PBL at Bishwa Ijtema
Promotion of Environment
The state of environment is rapidly declining in Bangladesh
and it is also a country vulnerable to climate change. The
key areas of degradation are air pollution, water pollution

and scarcity, encroachment of rivers, improper disposal of
industrial and medical waste, deforestation, less of open air

and bio diversity. The environment degradation needs to be
tackled in a concerted manner by all and society demands
that businesses also take responsibility in safeguarding the
planet. Green Banking is a component of the global initiative
to save environments. Banking sector in Bangladesh took

steps in this regard particularly in the field of Green financing
but the activities got new momentum after issuance of

Policy Guidelines for Green Banking by Bangladesh Bank
in the regard. PBL attaches great importance to these
initiatives and already made satisfactory progress in this

regard. Details of Green Banking initiatives of PBL are given
in Green Banking chapter in this Annual Report.
Corporate Social Responsibility
Yearly donation to the families of BDR carnage at Pilkhana.
Governor of Bangladesh Bank inaugurating

Prime Bank Eye Hospital.
Prize giving Ceremony of Prime Bank Cup

Golf Tournament 2012 at KGC
Scholarship awarding at BIBM, Dhaka
Prize giving ceremony of Prime Bank-NDDC National Debate

Competition.
Crest distribution of Childrens Art Competition Organised by PBL
Prize distribution at the Conclusion of International Rating

Chess Tournament-2012
Inaugural ceremony of 24th National Debate Competition
Green Banking
Green banking considers all the social and environmental
factors along with financial priorities with an aim to
protect the environment as well as to foster the economic
development in a more environment friendly way. It
is an opportunity to make a positive contribution to
PBL attaches great importance to these initiatives and

already made satisfactory progress in this regard. Given
below are the actions taken by PBL related to green banking:
Policy formulation and Governance
In line with the global development and response to the
environmental degradation and as per instructions of
Bangladesh Bank, PBL has already established its Green
Banking Policy named as PBL Environmental Blueprint.
A Green Banking Cell (GBC) has been formed with the
environmental and social concerns by enacting policies
task of developing policies, planning and administering
designed so that the business operations do not degrade
the green banking initiatives of the bank.
the environment or turns harmful for the society. It covers

a multitude of areas from a bank being environmentally
friendly to how their money is invested. Global warming is
an issue and has direct impact on bio-diversity, agriculture,
Incorporation of Environmental Risk in CRM

PBL has integrated the Environmental Risk Policy with its
Credit Risk Management Policy as part of the due diligence
review. It includes planning, training, implementation,
fisheries, dry land, water resources and human health.
measurement, reporting and reviewing and it will be
The environmental degradation needs to be tackled in
applicable to new business and existing business that
a concerted manner by all and society demands that

businesses to take responsibility in safeguarding the
planet. The key areas of degradation are air pollution,
water pollution, encroachment of rivers, disposal of
industrial and medical waste, deforestation, less of
open air and bio diversity and so on. Green banking is a
comes up for renewal or extension. The incorporation of

the environmental scanning to assess credit risk of the
borrowers and refrain from financing projects which would
have direct adverse impact on water pollution, health,
encroachment of rivers and deforestation.
Sector Specific Environmental Policies
component of the global initiative to save the planet.
PBL has already formulated strategies to design specific
Bangladesh is in a vulnerable stage in terms of climate
such as ready made garments and textile, ship breaking
change. In line with global development and response

to the environmental degradation, financial sector in
Bangladesh should play important roles as one of the key
stake holders. Banking sector in Bangladesh took steps in
this regard particularly in the field of green financing but
the activities got new momentum after issuance of Policy
Guidelines for Green Banking by the Bangladesh Bank in
policies for different environmental sensitive sectors

industry etc. Further sector specific environmental policies
will be formed in the near future.
Green Strategic Planning
The bank has determined green targets to be attained
through strategic planning and disclosed for green
financing and in-house environment management as well.
For in-house environment management, the target areas
this regard. PBL recognizes that balancing non-financial
cover attaining energy efficiency in the form of the use of
factors such as environmental and social issues with
renewable energy, reduction of electricity, gas, and petrol
financial priorities is essential with a view to demonstrate

the characteristics of good corporate governance.
There are direct impacts on the environment through
the daily consumption of energy and other resources.
In addition, there are indirect effects on the environment
through the provision of financial services to projects in
environmentally sensitive areas.
consumption, reduction of Green House Gas (GHG)

emissions, issuance of e-statements, electronic bill pay,
saving papers, environment friendly office buildings etc.
For green financing, the target areas cover reducing
loans for certain environmentally harmful activities,
attaining particular percentage of environmental loans
as percentage of total loans and introducing eco-friendly
financial products etc.
Setting up Green Branches
friendly. The projects which contribute to degradation
A Green Branch is featured by the provision of the
or deterioration of the environmental issues are usually
maximum use of natural light, use of renewable energy,

use of energy saving bulbs and other equipments,
reduced water and electricity use, use of recycled water
etc. Such a branch of a bank is specifically designated
as a Green Branch. PBL has 12 branches and 5 SME
branches powered by solar energy.
avoided. The bank financed Effluent Treatment Plants

(ETP) of RMG and textile sectors and other biogas
projects. In 2012, the bank extended finance of Tk 94.42
million for installation of ETP and Tk 346.28 million for
financing projects having ETP. The bank has further
strengthened its green banking initiatives by financing
environment-friendly Hoffman Klin based automated brick
Waste Management
fields, which contribute towards a greener climate.
Waste minimization through re-use and re-cycling are
Climate Risk Fund
the preferred methods of reducing solid waste. However,

where solid waste cannot be eliminated, the bank is careful
about its management and disposal. PBL promotes and
encourages waste management through reducing and
re-using wastes like optimum usage of office equipments
and furniture.
Improved In-house Environmental Management
Strategy of reuse, recycling of materials and equipments,
and source reduction and waste minimization strategy
is a part of in-house environmental management under
Phase-II. PBL has developed Green Office Guide to
reduce water, paper and electricity consumption like:

The instructions and communications within the

bank are becoming more online. To reduce paper
consumption both side of the paper is used for
interest rate is lower than the regular rate of interest.

Green products
PBL has introduced various products which are reducing
paper use, fuel consumption etc. Internet Banking,
Online Banking, SMS Banking and Phone Banking are
such products which are gaining popularity day by day.
These products are allowing the customers to do banking
transactions without coming to the bank physically.
Expansion of ATM network is greatly reducing the need
for cheque book and reducing consumption of security
papers etc.
PBL allocated Tk 15 million per quarter for green marketing,
Energy saving lights are used instead of

traditional bulbs / lights;
Air coolers are functioning on auto temperature
basis which helps limited running of compressor
unit and subsequently saving electricity;
LCD monitors are used instead of CRT for CCTV
systems for lower power consumption;
is expanding its exposure in agricultural sector where
As per the Bangladesh Bank guidelines, solar
branches and ATM booths;
initiative whenever there is demand for such fund. PBL
Green Marketing
been installed in specific branches, SME
partially. Besides, the bank contributes to Government
drafting and printing;

panels of adequate capacity have successfully
In 2012, climate risk funds have been created and utilized
Conversion of vehicles of banks transportation

pool and those of the employees to run on CNG.
Green Finance
Green finance as a part of green banking makes great
contribution to the transition to resource efficient and low
carbon industries i.e., green industry and green economy.
PBL financed various projects which are environment
training and capacity building. After introduction of SMS

banking, green marketing is gaining momentum. Through
push and pull system, the customers are becoming aware
of banks new products and initiatives. Employment
notices are given on website and online applications are
invited now. Kiosk machines installed at different places
for the awareness to the customers of the banks product
instead of sending paper ads and door to door mail
delivery. In addition, CSR activities had contributed to the
field of health and green finance as well.
Online Banking
All the branches of PBL are online. The bank has expanded
its ATM network and bills payment system is introduced
through ATM. PBL has used the BACH and BEFTN
mechanism for payment of wage earners remittances,
cash management and salary disbursement which greatly
supports the concept of green banking.
Sustainability Report-Green Banking

Employee Training
address environmental issues and risks material to the
The employees are receiving training on regular basis to

take responsibility for implementation of these policies.
Training on green banking has become a part of regular
training programs of the bank.
To demonstrate the commitment, PBL is maintaining
and
communicating
effective
policies,
procedures,
standards and guidelines for the business activities to
management, its clients and other stakeholders. PBL

is continuously improving the system for monitoring,
measuring and transparent reporting of the performance
related to predefined targets, priorities and objectives.
With a view to developing green banking practices, PBL
has taken proactive initiatives for employees, customers
and the society as a whole.
ETP financed project
Solar panel setup at a branch
Kuril Flyover
Battery Manufacturing Factory
Potato cultivation under agreculture finance of PBL
A mango garden financed by PBL
Senior Management
Left :
Quazi A. S. M. Anisul Kabir
Deputy Managing Director & COO
Middle :
Md. Ehsan Khasru
Right :
Md. Tabarak Hossain Bhuiyan
Deputy Managing Director & COEM
Muhammad Yasin Ali

Deputy Managing Director (ICC)

Deputy Managing Director & COFGB
Kanti Kumar Saha

Deputy Managing Director & CBO
Managing Director
Md. Ehsan Khasru
Senior Vice President
Deputy Managing Director

Muhammad Yasin Ali
Kanti Kumar Saha
Md. Tabarak Hossain Bhuiyan
Quazi A. S. M. Anisul Kabir
Vice President
Md. Didarul Alam

Imtiaz Ahmed Siddiqui
Sarqume Mohd. Kabir
A B M Habibur Rahman
Jahan Ara Begum
Mohammed Abul Kalam
Ferdousi Sultana
Md. Moniruzzaman
S. H. Mukhter Ahmed
Md. Milon Miah
Md. Iftekhar Uddin
Md. Abdus Shukur
Kazi Tozammel Huq
Kamruzzaman Khairul Kabir
Md. Fakhrul Islam
Syeda Nazma Parvin
Nuhal Ahmed Choudhury
Md. Hafizur Rahman Mallick
A K M Kamal Uddin
Md. Habibur Rahman
Md. Shahin Alam
Md. Toufiqur Rahman Ayeni
Abu Ashraf Siddique
Sharif Uddin Choudhury
Mohammad Jashim Uddin
Md. Mazharul Haque
Abdur Rashid Miah
Md. Omar Faruque
Mohd. Afzal Hossain
Md. Ramiz Uddin Miah
Md. Mahiuddin Ahmed
Md. Giash Uddin
A K M Jan-e-Alam
Mohammed Zakaria
Syed Sahadat Hossain
Md. Shamsuddin
Imtiaz Ahamed Bhuiyan
Md. Zahirul Islam
Mozammel Hoque
Md. Shah Alam Howlader
Md. Anwarul Islam
Ashraf Uddin Ahmed
Md. Amzad Hossain
Dewan Arfanul Alam
Syed Md. Nazmul Huque
Md. Ibrar
Md. Omar Kabir
Masudur Rahman
Md. Shahidul Alam
M A Mubin
Mir Md. Hassanul Zahed
Gazi Salauddin
Mohd. Jamil Hossain
Shamsher Jamal
Md. Tarique Parvez Jewel
Mohammad Yaqub
Md. Iftekhar Hossain
Mostafa Hasan
Md. Tofazzul Hossain
A N M Baki Billah
Md. Moniruzzaman
Morshed Ahammed
Anwarul Hoque
Md. Rezaul Haque
Md. Muhibbur Rahman
Amirul Alam Chowdhury
Md. Salah Uddin
Md. Reza Hossain
Md. Ibrahim Hossain Gazi
Md. Amir Hossain Majumder Md. Abdul Quddus
Wasequddin Ahmed Chowdhury Md. Amanullah
Joseph Halder
Md. Shaheen Howlader
Md. Abul Kalam Azad
Farhad Ahmad Khan
Muhammad Muzahid Hossain
Salahuddin Ahmed
Kazi Zillur Rahman
Taher Jamil
Syed Shafqat Rabbi
Md. Shaiful Hossain
Md. Abdul Matin
Md. Safiul Amin
Md. Fayezur Rahman Talukder
Senior Executive
Vice President
Habibur Rahman
A. O. M. Rashed
Md. Ezaz Hossain
Md. Nazim Uddin
Md. Iqbal Hossain
Kazi Mahmood Karim
Senior Asst. Vice

President
Md. Abu Taher Khan

Md. Firdous Alam
Md. Ahsan Habib
Md. Mahbub Alam
Ajmal Hoque Chowdhury
A S M Azizul Karim
Harunur Rashid Chowdhury
Kazi Azharul Islam
Md. Showkat Kamal Sarker
Md. Kamrul Islam
Mohammad Nazim Uddin
Bidyut Kumar Das
Abu Taher Md. Zakaria
Md. Kabirul Hasan
Md. Shahidul Islam
Mollah Farid Ahmed
Md. Yusuf Ali
Mohammad Nuruzzaman
Md. Jafar Hasan
A K M Enamul Haque
Md. Abdul Bari Mollah
Sharmina Banu
Dorothy Sultana
Ali Mohammad Nurul Huda
Md. Mozahid Kabir
Md. Tanveer Reza
Md. Mamunur Rashid
Mohd. Asaduzzaman
Zahed Iqbal
Sharmin Akther
Giash Uddin Ahmed
Md. Ziaul Latif
Abdul Mannan Khan
Farid Ahmed
Syed Tazul Islam
S M Khurshed Alam
Kazi Moinul Haque
Md. Aminur Rahman Akanda
Sirajul Hoque
Debashis Chakraborty
Md. Khaled Anwar
Mohammed Abu Shayem
Md. Arman Uddin Bhuiyan
Md. Taj Uddin Ahmed
Md. Syadur Rahman
Md. Iqbal
Hasan-Ul-Huq
Tofail Ahmed
Md. Ruhul Quisth
Farid Ahmed
Md. Tajul Islam
Md. Ashiqur Rahman
Mohammad Nazrul Islam
Mohammad Khurshid Alam
Muhammad Asiful Haque
Shanila Mehjabin
Executive Vice
President
Hasan Mohiuddin Bhuiyan

Sheikh Mortuza Ahmed
Shahidur Rahman Khan
Nasim Sekander
Md. Anwarul Islam
Mohammed Ehsan Habib
A S M Fasiul Islam
Khondoker Fazle Haider
Abdus Salam Khan
Farhad Uddin
Sk. Matiur Rahman
Muhammad Anowarul Islam
Md. Mashiur Rahman
Abu Zafar Md. Sheikhul Islam
Sk. Anisuzzaman
Md. Shahadat Hossain
Md. Shahjahan Majumder
K. M. Bodroudoja
Asst. Vice President
Md. Alamgir
Iqbal Haider
Afzalun Nahar
Mohammad Ashrafuzzaman
S M Parvez Kabir
A B M Shahjahan
Md. Rabiul Ahasan
Md. Nuruzzaman
Mohd. Baqui Billah
Md. Nazrul Islam
Mohammad Asif Chowdhury
Sayed Delwar Hossain
Md. Nasir Uddin
Md. Abdur Raafi
Syed Mahammed Ali Suhel
Mahmood Khan
Md. Ariful Haque
Ekram Ullah Chowdhury
Nazrul Islam
Nehal Hossain
Md. Nazrul Islam
Md. Rabiul Islam
Md. Rezwan Uddin Swhel
Florence Sutopa Majumder
Kamrun Nahar
Md. Mainul Kabir
A K M Abdul Alim Ibne Khabir
Mohammad Jahangir Bhuiyan
Md. Moinul Hasan
Md. Mobasshirul Islam
A T M Ahsan
Kazi Khairul Islam
Amal Chandra Basak
Md. Mizanur Rahman
Mohammad Shawkat Ali
Khandoker Raihan Ali
Md. Emdad Hossain
Mohammad Nazmul Hossain
Mohammad Kamal Uddin
A H M Be-darul Alam Goni
S M Shahidul Islam
Shah Mohd. Zakir Hossain
Md. Touhiduzzaman
Quazi Anwarul Azim
Md. Hashmot Ali Mollah
Shah Mohammad Mohsin
Mohammad Anisur Rahman
A K M Khairul Basher
Masood Mizan
Rupan Kanti Paul
SME Branches
Network
Islamic Banking
Division
Card Division
M-Commerce
ADC
Department
Retail Banking
Division
SME Credit
SME Banking
Division
Head of Small
Medium Retail
Chief Officer Emerging

Market & DMD
Treasury
Front Office
H.O Corporate
Banking Team
Branch Managers
Corporate Banking
Head of Wholesale
Banking Division
Chief Businiess Officer

(CBO) & DMD
Offshor Banking
Units
Corporate Liability
Marketing
Lease Finance
Unit
Export Finance
Unit
Structured Finance
Department
General Credit
Unit-2
General Credit
Unit-1
Treasury
Mid - Office
Risk Managment
Division
Credit Admin
Division
MDs
Secretariat
Operations
Division
Facility Management
Division
(Previously L&SSD)
Recovery
Division
Legal
Division
Agriculture
Support
International
Division
Proprietary
Investment
Department
IT Audit
Department
Internal Audit
& Inspection
Department
Compliance &
Monitoring
Department
Chief Officer Finance

& Global Business
& DMD
Board
Secretariat
Chief Financial
Officer (CFO)
(Financial Admin Division)
Chief Operating Officer

(COO) & DMD
Managing
Director
Chairman of the
Board of Directors
Trade Finance
Centralization
Department
Retail Banking
CRM Department
Credit Risk
Management (CRM)
Division
Chief Risk Officer

(CRO) & AMD
Board Audit
Cell
Head Office
Corporate Organogram of PBL
Anti Money
Laundering Cell
Capital Market
Division
Internal Control
& Compliance
Division
Marketing
Division
Resourch &
Development
Project Management
Officer
Human Resources
Divition
IT Divition
Brand
Communication
Department
Public Relations
Department
Strategic Planning
& Business
Promotion Dept
Chief Internal Control

&Compliance Officer
(CICCO) & DMD
Prime Bank Limited
Bangladeshi Companies
Overseas Companies
Prime Bank Investment Ltd. (99.99%)
Prime Exchange Co. Pte. Ltd, Singapore (100%)
Prime Bank Securities Ltd. (95%)
PBL Exhange (UK) Ltd. (100%)

PBL Finance (Hong Kong) Ltd. (100%)
Management Discussion
and Analysis
demand conditions, business investment should have
Global Economy
sales, housing markets, and employment.
The world economy continued to struggle four years after

the onset of the global financial crisis as evident from the
table below. The World Bank estimated the global GDP to
grow by 2.3 percent in 2012 (2.5 percent estimated by the
IMF). Economic conditions improved modestly in the third
quarter and improved further in the fourth quarter of 2012.
Developing economies were still the main driver of global
growth where activities picked up broadly as expected
and the growth in United States surprised on the upside.
Bond spreads in the euro area declined, while prices for
many risky assets notably equities rose globally. Capital
flows to emerging markets remained strong. However, a
broad set of indicators for global industrial production and
trade indicate no further strengthening of global growth.
The third-quarter improvement in global growth was partly
due to temporary factors including increased inventory
accumulation (mainly in the United States). It also masked
old and new areas of weakness. Activity in the euro area
was even softer than expected with some signs of stronger
spillovers of the weakness to the euro area core. In Japan,
output contracted further in the third quarter.
Global GDP Growth (%)
2011
Advances
Economies
World Bank
IMF
Euro Area
World Bank
IMF
USA
World Bank
IMF
Developing World Bank
Countries
IMF
China
World Bank
IMF
India
World Bank
IMF
Bangladesh World Bank
IMF
World
World Bank
IMF
Source:
1.6
1.6
1.5
1.4
1.8
1.8
5.9
6.3
9.3
9.3
6.9
7.9
6.7
6.7
2.7
2.9
2012
2013
(Estimated) (Projected)
1.3
1.3
1.3
1.4
-0.4
-0.1
-0.4
0.2
2.2
1.9
2.3
2.0
5.1
5.5
5.1
5.5
7.9
8.4
7.8
8.2
5.1
6.1
4.5
5.9
6.3
5.8
6.3
6.0
2.3
2.4
2.5
2.7
World Bank Global Economic Prospects (January 2013)

IMF World Economic Outlook Update (January 2013)
grown quickly; instead it fell at a 1.8 percent annualized
pace in the third quarter. Data for the fourth quarter
suggest that it too will be weak despite improving retail

GDP growth for East Asia and the Pacific region is
projected to slow to 7.5 percent in 2012 largely on
account of weak external demand and policy actions in

China directed towards moderating domestic demand and
controlling inflation. Going forward, GDP growth in the
region is projected to accelerate to 7.9 percent in 2013
before stabilizing at around 7.5-7.6 percent in 2014-2015

mirroring a modest acceleration in China in 2013 followed
by growth stabilization through 2015.
South Asias growth weakened to 5.4 percent in 2012,
mainly reflecting a sharp slowdown in India. Weak global

demand exacerbated region-specific factors including
subdued investment rates, electricity shortages, policy
uncertainties, and weak monsoon rains. Sri Lankas

growth was also dampened by policy efforts to contain
overheating and a poor harvest, while growth in Bangladesh
slowed in part due to weakening exports. Inflation eased
in most South Asian countries during 2012. However,

structural capacity constraints and entrenched inflationary
expectations suggest limited scope for policy easing to
support growth. South Asias GDP is projected to rise to
5.7 percent in 2013 and 6.4 percent in 2014, helped by

policy reforms in India, stronger investment activity, and
a gradual improvement in global demand for South Asias
exports. Migrant remittances in particular from the oil-rich

Gulf Cooperation Council (GCC) countries are projected
to remain resilient and support domestic demand in Nepal,
Bangladesh and Pakistan.
Bangladesh Economy
The Bangladesh economy achieved an impressive growth
of 6.3 percent during FY12 despite the global economic
downturn. A strong demand and continued expansion
of infrastructural facilities helped to accomplish this
accelerated economic growth amidst the fragile pace of
GDP growth in the Euro area is estimated to be scaled down

in 2013 as the region faced significant headwinds including
weak external demand, deleveraging by European banks,
a poor harvest and inflationary pressures. Growth slowed
most in the countries with strong economic linkages to the
Euro area, while it was relatively robust in most resource-rich
economies that have benefited from high commodity prices.
global economic recovery. The expansion of the economy
In the United States, uncertainty over future policy in the

run up to the November elections and from the so-called
fiscal cliff contributed significantly to the dampening of the
recovery in US growth during the second half of 2012.
Normally, with improving labor market and consumer
of fertilizer, uninterrupted supply of power for irrigation,
during FY12 was broad-based, registering positive growth

by all sectors and sub-sectors of the economy.
Agricultural sector contributed 19.3 percent of total GDP

in FY12 and achieved a growth of 2.5 percent aided by
continued policy support from the Government including

subsidy in input prices, adequate and timely distribution
increased credit flows and higher procurement prices of
output. Within the agriculture sector, the highest growth (5.4

percent) was achieved in the fishing sub-sector. Agriculture
and forestry sub-sector recorded 1.7 percent growth.
Industry sector emerged as the highest growing sector (9.5

percent). This was led by strong growth in manufacturing
and construction sub-sectors which recorded an impressive
growth of 9.8 percent and 8.5 percent respectively. The
accelerated growth of the sector was mainly due to huge
investment in large, medium and small scale industry.
Directives from the Bangladesh Bank to promote adequate
credit delivery and other mode of financing facilities to
Small and Medium Enterprises (SMEs) contributed to
achieve satisfactory industrial growth.
Service sector which is the largest sector of the economy
(49.5 percent of the total GDP) registered 6.1 percent
growth in FY12. Monetary intermediation (banks)
achieved growth of 9.4 percent in FY12 compared to 9.0
percent in FY11. Sectoral GDP growth performance was
as mentioned below:
1 Agriculture
2 Industry
3 Services
GDP
FY09
4.1
6.5
6.3
5.7
FY10
5.2
6.5
6.5
6.1
FY11
5.1
8.2
6.2
6.7
FY12
2.5
9.5
6.1
6.3
Source: Bangladesh Bank Annual Report (2011-2012)
6.3
5.7
6.1
6.7
GDP Growth (%)
FY09
FY10
FY11
FY12
The average inflation measured by 12-month average

basis increased from 8.8 percent in FY11 to 10.6 percent
in FY12. The rising inflation was triggered mainly by
the continuous rise in international commodity prices
including food, fuel and fertilizers, the higher than
targeted money supply growth, Taka depreciation and the
successive upward adjustments of administered energy
and petroleum prices in the domestic market. However,
the point to point basis inflation as at end December 2012
came down to 7.7 percent. This decline was mainly due
to the lower food and non-food prices. Weighted average
exchange rate for 1 US Dollar depreciated from Tk 71.17
in FY11 to Tk 79.10 in FY12 and which was Tk 79.75 for
the year 2012. Domestic savings-GDP ratio increased
from 19.3 percent in FY11 to 19.4 percent in FY12 while
investment-GDP ratio increased from 25.2 percent in
FY11 to 25.5 percent in FY12.
Monetary policy stance remained accommodative for

productive economic activities with growth supportive
financial inclusion promotion measures in credit policies
while also firmly discouraging diversion and undue
expansion of bank credit for wasteful unproductive uses
to build-up of inflationary pressures. The Bangladesh
Bank continued to support credit growth for activities
facilitating production of goods and services, providing
refinance against lending in income generating priority
sectors (agriculture, SME, low cost housing etc.) while
discouraging excessive expansion of non-essential credit
and similar other demand side lending. The increased
interest rate flexibility facilitated deposit mobilization and
restoration of balanced advance deposit ratios in banks.
The weighted average interest on bank credit increased
to 13.75 percent in FY12 compared to 12.42 percent in
FY11. On the other hand, the weighted average cost of
deposits increased to 8.15 percent in FY12 from 7.27
percent in FY11. The growth of Broad Money stood at
17.4 percent in FY12, which was significantly lower than
the growth of 21.4 percent in FY11.
Export earnings recorded growth of 6.2 percent and stood
at USD 24.0 billion during FY12 whereas import payment
stood at 32.0 billion in FY12 indicating an increase of 5.4
percent over FY11. Inward remittances from expatriate
Bangladeshi nationals increased by 10.2 percent and
stood at USD 12.8 billion in FY11. The current account
surplus was USD 1.63 billion whereas the balance of
payments registered a surplus of USD 0.5 billion in FY12
due to increased flow of FDI and portfolio investment. The
gross foreign exchange reserve held by the Bangladesh
Bank stood at USD 10.36 billion at the end of FY12 (USD
12.75 billion at the end of December 2012).
Banking Sector of Bangladesh
Banking sector of Bangladesh showed remarkable
resilience in FY12. With a view to fostering a sound, efficient
and stable financial system, the Bangladesh Bank began
implementing a number of important policy measures.
These included forceful emphasis on undertaking timely
and effective risk management practices by banks through
the revised Risk Management Guidelines. Supervisory
oversight over banks has been strengthened through routine
and periodic review of the stability of the individual banks
as well as the whole banking system reinforced through
the introduction of stress testing for bank resilience. Great
efforts have been made to broaden the inclusion of unserved and under served productive economic sectors and
population segments into the financial system with easier
access to banking services. At the same time, banks have
been encouraged to expand CSR initiatives and Green
Banking operations. The Bangladesh Bank issued new
guidelines for loan classification on provisioning for banks

which came into effect from the last quarter of 2012. This
guideline increased the amount of non-performing loans and
provision requirements for banks but in the long run it will
elevate the banking practices to the best norms in the world.
Some key indicators of the banking sector of Bangladesh
are mentioned below:
Taka in billion
Particulars
Total assets
Deposits
Loans and advances
Weighted average deposit rate (%)
Weighted average lending rate (%)

Capital adequacy ratio (%)
NPL ratio (%)
FY11
FY12
5,431.5
4,082.7
6,521.2
4,937.2
7.27
8.15
3,476.8
4,115.4
12.42
13.75
7.1
7.2
9.7
11.3
Provision adequacy ratio (%)
96.4
93.9
Return on Equity (ROE) %
15.5
13.5
Return on Assets (ROA) %
1.3
1.2
Source: Bangladesh Bank Annual Report (2011-2012, 2010-2011)
Future outlook
Recent economic growth of Bangladesh averaging 6.2
percent is undoubtedly impressive. Attainment of the
expected GDP growth in FY13 will depend mainly on
effective adoption of prudent macroeconomic policies in a
sound economic environment along with global economic
recovery. Bangladesh will also need to focus on markets

outside the EU, particularly in the ASEAN and the SAARC
countries. Sound economic policies combined with the
policies contributing to rapid gains in social indicators will
contribute to the countrys aspiration to become a middle

income country in the near future.
The Bangladesh Bank has downgraded the GDP growth

forecast for FY13 to 6.2 percent from earlier projection
of 7.2 percent. The World Bank in its report on Global

Economic Prospects (January 2013) has also forecasted
GDP growth of Bangladesh to 5.8 percent in FY13 and 6.2
percent in FY14. The report mentioned that the countrys

export performance weakened in 2012, domestic demand
was supported by steady inflows of remittances and
a relatively stable agricultural performance. However,
external constraints have been exacerbated by supply

side bottlenecks including inadequate infrastructure,
energy constraints and political uncertainty. The report
forecasted that a further diversification of export markets

and gains in market share will benefit Bangladesh as
growth is expected to pick up faster in North America and

Asia compared with near-stagnant growth projected for
the Euro Area in 2013. IMF in its World Economic Outlook
Update (January 2013) has also forecasted GDP growth
of Bangladesh to be 6.0 percent in FY13.
The latest monetary policy (January-June 2013) stance

by the Bangladesh Bank is designed to ensure that the
credit envelope is sufficient for productive investments to
support the GDP growth target while keeping it consistent
with the targeted inflation rate. In view of the risks to output
growth due to uncertainties around the global economy,
the Bangladesh Bank has revised its targets for broad
money and private sector credit growth. However, further
space has been created in the monetary program in case
there is greater lending appetite for productive purposes
and sufficient to accommodate even an optimistic scenario
for output growth. At the same time the Bangladesh Bank
is committed to bringing inflation down further and also to
avoiding asset price bubbles, and as such continues to
encourage banks to use the space for private sector credit
growth for productive, and not speculative purposes.
This balanced monetary policy will also aim to minimize
excessive volatility of the exchange rate. The Bangladesh
Bank will continue its intensified focus on bolstering
financial sector soundness and stability by tightening
loan classification and provisioning requirements towards
convergence with global best practice standards,
introducing online supervisory reporting requirements on
financial transactions, strengthening onsite and offsite
vigilance on risk management, internal controls and
internal audit in banks and financial institutions.
Despite the challenges, the financial sector of the country
is also expected to continue showing good results during
2013. The banking sector is still the most promising and
structured sector of the economy. It is also the most
preferred sector for the investors of the bourses as
increased remittance flows, good export performance and
steady industrial growth, accelerated performance in SME
and consumer loan, implementation of risk management
and corporate governance are likely to have positive
impact in the performance of the banking sector. PBL is
well positioned to meet the challenges of 2013 and will
continue to strive to innovate and capture opportunity
for growth and value creation. The bank will continue
to harness the potentials of retail, credit card, SME,
agriculture and remittance market. The bank will focus
on its IT based products and services for inclusion of unbanked and under-banked segment of population along
with generating more business from existing customers.
However, continued pressure on interest margins,
fees, exchange earnings and increased provision
requirement for retail, credit card, SME and Off-balance
sheet exposures will pose a challenge to the financial
sector. By adhering to good corporate governance
and practices, sound risk management policies and
strict credit evaluation procedure, PBL, in its pursuit for
growth, will have the readiness to meet the challenges
of capital adequacy under Basel-III. which is going to be
implemented in Bangladesh in the near future.
Review of Performance of PBL

Prime Bank operation
PBL is one of the leading private commercial banks
of the country in terms of asset quality, profitably,
product diversification, and capital adequacy. The major
challenges faced by the bank during 2012 were:
Liquidity management became a priority as liquidity
position became tightened since the last quarter
of 2011 and continued to do so during 2012 due to
adoption of further contractionary monetary policy by
the Bangladesh Bank to arrest higher asset growth
to non-productive sectors and keep inflation at an
acceptable level. The bank as a primary dealer had to
buy treasury bills / bonds which were devolved by the
Bangladesh Bank which created an extra pressure
that affected earnings as well as caused additional
expenses in the form of borrowing from the market
and higher cost of term deposits;
Ensure expected growth of loan portfolio was a challenge

for the bank in 2012 particularly in the first two quarters
due to liquidity constraints. Moreover, unavailability
of power especially gas for new projects and downfall
in capital machinery import acted adversely to loan
growth. However, the situation improved to some extent
in the last two quarters of 2012;
Diversification of credit portfolio with higher emphasis

on SME and retail lending in absence of adequate
scope for growth in corporate segment as well as a
priority for contribution to the economy. Disbursement
of agriculture loan was also a priority for the bank as
prescribed by the Bangladesh Bank;
The bank enjoyed comparatively lower spread in the
beginning of 2012. But the spread gradually increased
due to recovery drives and increase in lending rates
though deposit rates were also increased by liquidity
crunch;
Improvement of deposit mix and competitive pricing

on liabilities became a regular phenomenon over
the year 2012 to avoid profit erosion. However, low
cost and no cost deposits continued to be converted
to high cost term deposits bearing higher rates of
interest propelled by the liquidity crunch in the market;
Maintaining asset quality was a top priority for the bank.

The bank continued recovery drives which improved
the asset quality. But the new loan classification and
provisioning policy implemented from the last quarter
of 2012 increased the NPL ratio and loan provision
requirement of the bank;
Increase foreign exchange business (import, export,

remittance) despite the overall slow growth of this
avenue of business particularly import which helped
to book commission and exchange earnings up to a
satisfactory level;
Volatile
capital market also affecting the money
market in the form of tight liquidity scenarios.
In the backdrop of the challenging environment, PBL

continued its growth in all of its operating activities.
PBLs operational activities include commercial banking
in conventional and Islamic banking mode and off-shore
banking through off-shore banking units. Merchant banking

activities are being carried out by PBLs subsidiary namely
Prime Bank Investment Limited whereas brokerage
activities are carried out through another subsidiary namely
Prime Bank Securities Limited. Bank's subsidiaries at

Singapore and UK are engaged in providing remittances
faculties to expatriate Bangladeshis. PBL Finance (Hong
Kong) Limited, another fully owned subsidiary of PBL

advises, negotiates, confirms and provides discounting
facilities against LCs originating from PBL and other

banks in Bangladesh. All the business sectors showed
satisfactory performance during 2012.
What we did good
Excellent
Brand Image
Network of 113 branches and 17 SME branches at

strategic financial centers
Deep
market penetration and continuous growth in
corporate, commercial and trade finance sectors
Good market share and sound financial performance

Islamic banking products and services
Off-shore
banking in major EPZs
Exchange
Houses (fully-owned subsidiaries) at
Singapore and UK for remittance business
PBL
Finance (Hong Kong) Ltd., a fully owned
subsidiary for financing and remittance business
Real-time online banking through core banking software
Temenos T24, a world class technology platform
Expansion
Internet
of ATM services and KIOSK
Banking, SMS Banking, Phone Banking and
Mobile Banking
Credit
Card
Consumer finance
Small
& Medium Enterprise (SME) finance
Syndicated
financing
Merchant
banking activities through Prime Bank
Brokerage
activities through Prime Bank Securities
Investment Limited (fully-owned subsidiary)

Limited (fully-owned subsidiary)
Corporate
governance and CSR activities
Management
Wide
team and skilled HR
customer base
Growth
of foreign exchange business despite slow
economic situation
Continuous
Diversified
expansion of branches
product base

Achievements
The achievements and concerns of PBL during the year
2012 are given below:
a) 15 percent growth of profit before provision

The bank registered profit before provision of Tk 8,551
million in 2012 against Tk 7,427 million in 2011. The growth
of profit was 15 percent whereas achievement of budget

was 101 percent. However, profit before tax in 2012
showed a negative growth of 21 percent over 2011 mostly

because of implementation of new loan classification and
provisioning policy by the Bangladesh Bank from the last

quarter of 2012.
b) 14 percent growth of deposit volume

Despite the challenging scenario in the market for deposit
mobilization, PBLs growth rate for deposits was 14

percent, which was 91 percent of the budget. The growth
of high cost deposits (15 percent) was higher due the tight
liquidity position in the market and devolvement of treasury
bills / bonds by the Bangladesh Bank as a primary dealer.
However, the bank continued its efforts for mobilization of

low cost and no cost deposits for which low cost and no
cost deposits increased by 12 percent whereas savings
deposit increased by 7 percent over the previous year
despite the conversion of low cost and no cost deposits to

high cost term deposits bearing increasingly higher rate
of interest.
Deposit Mix
Scheme Deposits
22.22%
FDR
45.38%
Current &
Contingent
15.37%
Bills Payable
1.88%
Savings Deposits
10.54%
Special Notice
Deposits
4.62%
To employees as
salaries & allowances
To providers of capital as
dividend & reserve
To Government as income tax

Depreciation
Retained profit
Deferred taxation
c) 16 percent growth of loans and advances volume

Loans and advances volume was 101 percent of the budget
which reflected a growth of 16 percent over previous year.
The loans and advances portfolio was more diversified.
SME loan showed 30 percent growth as encouraged by

the Bangladesh Bank whereas retail loan as discouraged
by the regulatory body showed 3 percent growth;
d) 33 percent growth of net interest income
PBLs interest income increased by 37 percent in 2012.
Yield on loans and advances increased to 15.17 percent

in 2012 from 13.09 percent in the previous year due to

increase in rates of interest on lending and drives for
recovery of overdue loans.
On the other hand, PBLs interest expense increased by
38 percent during 2012. Interest cost of deposits was the
main component of interest expenses whereas interest
cost of borrowings also had a significant part in 2012.
Interest cost of deposits increased to 8.75 percent in 2012
from 8.15 percent in the previous year due to increase in
rates of interest on deposits arising from overall liquidity
pressure in the market. Moreover, the liquidity pressure
compelled the bank, a Primary Dealer, to go for mobilization
of additional high cost deposits and additional borrowings
to purchase treasury bills / bonds which were devolved by
the Bangladesh Bank. This caused interest expense on
deposits to increase by 29 percent and interest expense
on borrowings to increase by 131 percent.
As a result, PBLs net interest income increased by 33
percent during 2012. Net interest income was the main
contributor to operating income, accounting for 40 percent
followed by investment income and non-interest income.
e) 11 percent growth of investment income
PBLs investment income consists of interest / discount
earned on treasury bills / bonds, gain on government
security trading, dividend received on shares and
capital gain from sale of securities of listed companies.
Investment income of the bank in 2012 increased by 11
percent over the previous year. As a primary dealer, PBL
had to devolve securities by Bangladesh Bank which
created extra pressure as the bank had to borrow from
the market. As such interest/discount income became the
main contributor to investment income. However, due to
rising rates of interest on treasury bills / bonds the bank
had to book net trading / revaluation loss of Tk 53.55
million in 2012 against net trading / revaluation gain of Tk
730.14 million in the previous year. In addition, dividend
was received on shares of Prime Bank Investment Limited
for Tk 240 million in 2012 against Tk 450 million in 2011;
f) Growth of foreign exchange business
PBL handled foreign exchange business worth Tk 354.59
billion in 2012 against Tk 344.67 billion in 2011. This can be
termed as an achievement considering the slow economic
scenario for trade finance business in Bangladesh
particularly for import business as detailed below:
Import business handled was Tk 168.53 billion which
was 80 percent of the budget and showed 3 percent
negative growth;
Export volume was Tk 143.61 billion which was 91 percent
of the budget but showed growth rate of 8 percent;
Remittance business was Tk 42.45 billion which was 99
percent of the budget and showed growth rate of 15 percent.
g) Growth of non-interest income
was 36.62 percent in 2012 against 35.75 percent in 2011
Despite the challenging economic situation for foreign

exchange business in Bangladesh as stated above, noninterest income of PBL increased by 3 percent during
the year. Fees and exchange based income of the bank
and indicates satisfactory operating efficiency of the bank

as per the industry standard.
j) Strengthening capital base
decreased by 10 percent during the year due to fall in
By maintaining strong growth of profit, PBL has always
rates of foreign currencies. However, other charges and
growth. As a result, capital adequacy of the bank as per
of 56 percent as a result of realization of charges against
percent as against minimum statutory requirement of 10.00
overall growth of non-interest income.
consideration both in terms of mind set-up and decision
import business and lower gap between buying and selling
ensured internal generation of capital to meet the business
recoveries increased during the year registering a growth
Basel-II on consolidated basis remained strong at 12.64
banks superior services provided which contributed to
percent. The bank has gradually been taking Basel-III into

making which is yet to be implemented in Bangladesh.
h) NPL recovery
Tk 460.24 million had been recovered against NPL
accounts and Tk 85.05 million had been recovered against
previously written-off accounts in the year 2012. Due to

continuation of major recovery efforts, the NPL ratio stood
at 3.83 percent in 2012 despite the new loan classification
and provisioning policy by the Bangladesh Bank.
i) Cost control
Operating cost was in line with the budget and increased
by 20 percent during the year mainly due to increase
in personnel and other operating expenses resulting
from increased investment in branch expansion and
development of IT infrastructure. To keep the salary
package competitive in the industry, there was upward

revision of the packages in the last quarter of 2011
which had full effect in personnel expenses in the year
2012. However, the enhancement of the package will

motivate our employees to do even better in future and
targeted increase of business especially in SME and retail

segments will benefit the bank in broad spectrum. PBL also
made donation amounting to Tk 213.41 million to Prime
Bank Foundation to carry on various CSR activities. PBL

also focused on developing brand image and increased
promotional and advertisement expenses. This strategy
added value to the business. The banks cost-income ratio

Total
Cluster Name Number of
branches
Number
of AD
branches
Deposits
Actual
k) Branch Cluster Management

Branch Cluster Management (Branch Mentorship) was
strengthened further during 2012. Through Cluster
Management the Senior Management is becoming directly
involved with Head of Branches (HOBs) in their marketing
drives for assets, liabilities, and other issues. As a result,
the HOBs are exposed to more matured thoughts and
ideas through Mentors resulting in qualitative improvement
of their business and operational activities. The shift to
the mentorship program has proved to be very effective
way of empowering the people to do better, understand
the challenges ahead through interactive dialogue with
senior management. The cluster management follows a
bottom up approach in setting the budget which includes
all key parameters of core risk management. The good
profitability, strong asset quality are the results of proactive
role of the HOBs under the cluster managements. The
system strengthened the compliance, transparency and
accountability of the HOBs and has become the process
of creating future leaders and successors of top level
management.
The branches of PBL are divided into 4 (four) clusters
each headed by a Deputy Managing Director. A brief
review of the structure and performance of the clusters
are mentioned below:
Taka in million
Loans & Advances
% of Total
Actual
% of
Total
Budget
Operating Profit
%
Actual
Achievement
% of Total
Cluster-1
29
11
47,115
26.55
55,091
36.09
3,002
3,066
102
26.92
Cluster-2
31
47,759
26.91
38,157
24.99
3,147
3,433
109
30.14
Cluster-3
28
40,650
22.90
28,120
18.42
2,625
2,699
103
23.69
Cluster-4
25
41,952
23.64
31,297
20.50
2,326
2,193
94
19.25
All Clusters
113
27
177,476
11,100
11,391
103
152,665

Branch Clusterwise Frofit
Cluster-4
19.25%
Cluster-1
26.92%
Cluster-3
23.69%
Cluster-2
30.14%
Cluster-1
Cluster-3
Cluster-2
Cluster-4
Activities of Divisions of PBL

Business Review
Credit
Liability Marketing and Cash Management to offer

different kind of liability products and innovative solutions
for cash management to fulfill the needs of ever changing
requirements of the large corporate.
The bank continued playing a major role in supplying
business capital (i.e., loans / investments), arranging
and raising finance while maintaining a high standard of
diligence and ensuring full compliance, to help the economy
prosper and build social and physical infrastructure of
the country. PBL does understand the complexity and
intricacies of corporate financing modalities and devices
and tailors customized and comprehensive banking
solutions for corporate customers in a cost effective and
friendly manner. As at end 2012, total corporate lending of
the bank stood at Tk 134.70 billion registering 15 percent
growth over that of year 2011 and accounting for about 84
percent of banks total loan portfolio. A brief description of
the banks corporate banking activities by the major units
of CBD during 2012 is summarized below:
The credit portfolio of the PBL includes loans and advances

provided under conventional terms and investments
Corporate Loan Mix
provided as per Islamic Shariah on profit sharing basis. The
Others Loans
10.77%
credit portfolio increased by Tk 22.04 billion during 2012
registering a growth of 15.87 percent. Credit covers following
Commercial
Lending
16.10%
core areas: Corporate, SME, Retail and Credit Card.

Loans & Advances Mix
Industrial Loan
60.70%
SME Loan
7.60%
House Building
2.68%
Retail Loan
7.03%
Corporate Loan
83.72%
Credit Card
0.57%
Staff Loan
1.08%
Corporate Loan
SME Loan
Retail Loan
Credit Card
Staff Loan
Corporate Banking
Corporate Banking Division (CBD) of PBL serves the
large corporate in different industry segments of the
country. A large amount of the loans and advances of

PBL is extended through CBD. CBD is preceding through
several strategic business units namely (i) General Credit
Unit, (ii) Export Finance Unit, (iii) Lease Finance Unit

and (iv) Structured Finance Department to cater banking
solutions to corporate customers via both conventional

and Islamic Shariah complaint modes. During 2012,
another new business unit was formed namely Corporate
Export Financing
9.74%
Industrial Loan
Others Loans
Commercial Lending
Export Financing
House Building
General Credit Unit

General Credit Unit (GCU) is a part of Corporate Banking
Division, playing major role to finance large corporate
customers. In PBL, CBD is a broader term to handle
large corporate bodies like manufacturing, agro based
industries, essential commodity, ship breaking, steel
manufacturing, construction, etc. GCU is handling the
major portion of banks loan portfolio through its two units
(Unit 1 and Unit 2). GCU provides services to its corporate
customers located in various geographic locations.
PBL has well defined structure to handle credit proposals
and GCU team is engaged with processing the proposals
complying regulatory issues and guidelines. Branches
keep business relationship with the valued customers and
after getting request from their end, send the proposals
to GCU for necessary approval. On proper scrutiny, GCU
places the issue to the competent authority for approval.
Major areas of financing of GCU includes essential

commodity trading and processing, construction, real
estate, work order financing (for construction of roads,
highways, bridges, Jetty, embankment, rehabilitation and

new construction of railway lines etc), ship building, ship
breaking, manufacturing and steel re-rolling, renewable
energy, etc. The service range of GCU includes

documentary credit and post import financing (for trading
items, capital machinery and raw material), working capital
and issuance of various types of Bank Guarantee and

Counter Guarantee. Members of this unit also maintain
extensive relationship with the customers to understand

the business need as well as their financial requirement.
With this view, GCU members arrange frequent visits
to the customers business ventures to maintain and
increase customer relationship for better customer

services, customized and innovative solutions. Clientele
of GCU comprises of many large and reputed business
concerns of the country. GCU also focuses on catering to
the need of innovative business ideas. As a result, many

pioneering business have been successfully financed
by this unit. PBL also provided UPAS and refinancing in
foreign currency to allow the corporate to take the benefit

of LIBOR based financing.
Industrial Loan Mix

Agriculture 2.78%
Banks total exposure on export field comprises with

RMG, backward linkage industries, textile sector which
includes dyeing and weaving industries, textile mills,
spinning, handloom, home textile; jute, leather, ceramics,
pharmaceuticals, fisheries, plastic products, accessories
manufacturers etc.
Lease Finance Unit
Lease Finance Unit of the bank undertakes the following
activities: (i) to diversify the investment portfolio of the
bank, (ii) to provide complete and composite financial
services according to the customer need, and (iii) to
participate in the industrial development of the country.
At the year-end 2012, the lease finance portfolio stood
at Tk. 8.19 billion. PBL offers lease finance facility
against capital machinery for industrial units and BMRE
of the existing industrial units, medical equipments for
clinics, pathological laboratories, hospitals, construction
equipments, transport vehicles, etc. Apart from this,
the bank extended loans to 15 Non-Banking Financial
Institutes (NBFIs) against which total outstanding was
Tk. 2.63 billion at the year end 2012.
Structured Finance Department
Others (including
bills) 30.25%
Textile 31.88%
Food and allied

6.53%
Transport & communication

11.41%
Service 7.29%
Pharmaceuticals
1.93%
Cement & ceramic

6.25%
Leather, chemical,
cosmetics 1.43%
Tobacco 0.25%
Textile
Cement & ceramic
Food and allied
Service
Pharmaceuticals
Transport & communication
Leather, chemical, cosmetics
Others (including bills)
Tobacco
Agriculture
Export Finance Unit

Export is the driving force for the economy of the country
both in terms of foreign currency earnings and employment

generation. The performance of PBL in handling export
business is quite satisfactory, which was around 7 percent
of the countrys total export earnings i.e., about 7 percent

of countrys export business is routed through PBL. The
total volume of export of the bank in 2012 was Tk 143.61
billion against Tk 133.40 billion in 2011. The exporters
were encouraged to enter into new markets and support

was given in the form of both pre-shipment and postshipment export credit.
Export Finance Unit of the bank comprises of experienced

and efficient manpower who are handling more than 350
direct and hundreds of deemed exporters through its
27 Authorized Dealer (AD) branches and 3 Off-shore
Banking Units (OBUs).
Structured Finance Department (SFD) under the umbrella

of CBD is reorganized to provide more customized
structured products to the corporate customers. SFD
is functioning in three areas namely: (i) Infrastructure
Finance, (ii) Industrial Partnership and (iii) Service
Sector. At the end of 2012, the portfolio of SFD was Tk
12.83 billion of which Tk 2.25 billion was in Infrastructure
Finance, Tk 9.80 billion in Industrial Partnership whereas
Tk 0.78 billion was in Service Sector.
In addition to its involvement in conventional projects, the
bank is always keen to support Governments initiative
for electricity generation by financing power plants. As a
part of this initiative, two power projects (50 MW and 25
MW) went into trial production in 2012 where EPC finance
and project finance for both the projects were provided
by PBL.
Inspired by global awareness for an environment friendly
world, PBL looks forward to finance green projects in
priority basis. The bank promoted green projects i.e., a
Hybrid Hoffman Klin based automatic brick project was
first of its kind to get disbursement under the refinance
scheme of the Bangladesh Bank during the last year.
Financing the central effluent treatment plant at Dhaka
EPZ that started its trial production in 2012 is another
example of banks such involvement.

To facilitate the initiative of the Bangladesh
Telecommunication Regulatory Commission to restrict
illegal VOIP operation, the bank extended financing
packages to nine International Gateway, Interconnection
Exchange and International Internet Gateway operators
under the licenses issued by BTRC in 2012. Another
significant exposure of the bank in 2012 was taken on a
company which is one of the six licensees to undertake
implementation of International Terrestrial Cable network,
the much awaited alternative to existing submarine cable
network to connect with rest of the world.
In 2012, PBL won a Letter of Mandate from a large
corporate customer to arrange a syndicated finance of
Tk 4.36 billion as Lead Arranger which will be the 22nd
syndicated deal of PBL as Lead Arranger.
and the corresponding liabilities. Short term transaction

solutions include corporate salary account, collection
account of large business houses, correspondent banking
arrangements for other banks, insurance companies,
leasing and finance companies, state owned corporations
/ entities, etc. Investment solutions include different

Current Accounts, SND Accounts, Term Deposit Accounts,
etc. In addition, corporate liability team also provides a
wide range of corporate fund management solutions for
business houses using online banking platform of PBL

through its network of 130 branches across the country.
Trade Finance and Guarantee Business
Considering the economic scenario, PBLs performance in
this area was satisfactory. Total import and export business
handled during 2012 were Tk 168.53 billion and Tk 143.61

billion respectively. The import business reduced by 3
percent over the previous year. The main items of imports
were industrial machineries, raw materials, commodities

and other consumer products. The growth rate of export
business was 8 percent and the items of export were
RMG, Shrimp, Jute & Jute goods, Leather, Tobacco,
Ceramic tiles, Fresh vegetable, Tempered Quoted Glass,

Bone crust, Betel-Nut etc. The growth of export gave the
bank an edge in managing required foreign currency for

meeting LC commitments. PBLs guarantee business in
2012 was Tk 29.39 billion registering 6 percent growth

Raozan 25 MW Dual Fuel Power Plant
over that of 2011.
Import & Export Business
168,532
143,612
133,396
106,943
96,452
76,097
91,424
68,550
147,704
174,384
(Taka in million)
Star Ceramic Limited
Corporate Liability Marketing and Cash Management Unit
Retail Banking
Corporate liability marketing and cash management

team is formed to offer different kinds of liability products
and innovative solutions for cash management. This team
deals with offering various cash management products
and investment solutions to the existing and prospective
corporate clients in line with their cash flow / cash cycle,
investment / savings appetite which will facilitate better cash
management, reduce cost of fund and most importantly
to ensure maturity matching between banks assets
Retail Banking of PBL has passed another successful
year both in terms of asset and liability business as the

bank is different from the competitors and customers can
easily differentiate banks products from others. The agility
in terms of expanding the delivery channels, augmenting
value added products, creating new avenues of services,

inventing new alternative delivery channels for expanding
banks customer base in distant urban and rural areas
were the contributing factors for satisfactory performance.
PBL is one of the largest providers of retail loan in

Bangladesh and the growth of retail loan portfolio of the
bank was 3.33 percent during 2012 despite a number
of restrictions imposed by the Bangladesh Bank in
disbursing retail loans. The bank could successfully
redesign products and services to record growth.
Another milestone for the bank was signing memorandum
On the liability side, emphasis was given on mobilization

of Current and Savings accounts (CASA). As a result
number of CASA accounts increased by around 116,000
whereas volume increased by 6 percent in 2012 over the
previous year.
Details of the loyalty programs and activities are given in
Retail Banking is always in the process to modify the

existing retail products according to customers needs. In
2012, new products like My First Account (MFA), Account
150% and Lakshma Puron (LP) were launched whereas
products like Double Benefit Deposit Scheme (DBDS),
Monthly Benefit Deposit Scheme (MBDS) and Prime
Millionaire Scheme (PMS) were redesigned.
During 2012, Retail Banking Division carried out different
promotional campaigns details of which are given in the

Customer Care chapter of this report.
4th largest card issuer. This has given the bank exclusive
rights for issuing and acquiring JCB card in Bangladesh.
As a result, the bank has now agreement with three
world renowned card issuer- VISA, Mastercard and JCB.

the Customer Care Chapter of this report.
SME Banking
SMEs play a very significant role in the economy in

terms of balanced and sustainable growth, employment
generation, development of entrepreneurial skill and

contribution to export earnings. Bangladesh economy
is characterized by low per capita income, high level of
unemployment, mass poverty and social deprivation. In
these circumstances, higher growth of SMEs can reduce

poverty to a satisfactory level by creating jobs for the
skilled and un-skilled manpower in this sector. Most of

the SMEs assist in regional and local development since
they accelerate rural industrialization by linking it with the

more organized urban sector. SMEs use a combination of
innovation, improvisation to develop local products and
Credit Card
As a continuous process, the bank achieved technological
advancement, service improvement and product
development during the year which contributed to double
digit growth in all of the key performance indicators for
credit card as given below:
Key Performance
Indicators
of understanding with Japan Credit Bureau (JCB), worlds
Year
2009
2010 2011
% Growth
2012 in 2012
over 2011
Number of card issued

3,720 8,918 9,365 10,206
Advance (Taka in million)
450
517 750
915
Acquiring business (Taka
in million)
2,336 3,422 4,140 5125
Net profit (Taka in
million)
35.98 55.32 65.37 80.23
9
22
24
23
Various initiatives and loyalty programs were carried

throughout the year 2012 which kept PBL credit card in
forefront. Mentionable are grand launching of Platinum
Card through a gala night, issuing pre-paid hajj card
for the pilgrims, enhancing business network through
signing merchant agreement with Saadmusa and
Mustofa Mart, introduction of Shariah based Islamic
credit card- Hasanah Quard Credit Card, implementing
new design of core products and adopting queue
management system for priority customer service facility.
The bank carried out various promotional campaigns viz.
'Shop n Win' and 'Shop n Earn' loyalty reward programs
with unique features. Procuring new 500 EMV complied
POS machines and shifting the business and collection
centers in different sites were also important strategic
movements of the bank in 2012.
services for local needs using local resources. It has been

tested and found that lack of access to external finance is a
key obstacle SMEs growth. SMEs face several difficulties
in obtaining finance from the formal sector. Most of the
problems are from demand side. On the other hand,

collateral requirements, weak credit skills and practices,
cumbersome loan processing and documentation are the

major supply side problems.
PBL has been working in order to ensure the vibrant
financial economy through the financing in SME sector.

PBL has already taken several initiatives from their end to
cater or facilitate the SMEs for their success.
The bank has been operating SME business successfully
as one of the market leader in Bangladesh since 1995. SME

business has huge opportunities to grow. For successful
SME operation, the division adopted centralized operating
practices by developing need-based, market oriented and
transparent check & balance working models.
PBL has been strengthening its SME banking business

under the following manner:
Separate
SME Financing Policy which is being
regularly reviewed and updated;

centralized SME banking operations;
Dedicated SME desks in all branches for marketing

and expansion of SME business;
Separate dedicated SME
desk for women
entrepreneurs;
Separate monitoring team for SMEs;
Strengthening

Separate
team (employees as well as DSEs for push

marketing) for selling loan and collecting deposit
through SME products;
Special Credit Risk Management team for SME banking;
Different trainings for SME officials as well as for
entrepreneurs;
Dedicated collection team for SME loan;
Customized products and services for SME;
Service through 17 SME/Agri branches at different

places in Bangladesh;
Develop clusters under area approach etc.
namely Prodip Loan under JICA fund Refinance &

Pre-finance Scheme of the Bangladesh Bank to boost
up trading, manufacturing and service sectors. Apart
from offering customized financial services, PBL puts its
efforts for the development of this sector by participating
in various road shows, workshops, forums and fairs to
build awareness among the customers.
During 2012, PBLs strategy was focused on marketing

the products to wider range of customers and providing
working capital and term loan to different manufacturers,
traders and service providers including backward and
forward linkage industry that fall into SME universe.
Banks exposure is thus well diversified among 4,560
customers to different sectors viz. cottage, handy crafts,
power loom, auto parts, garments accessories etc.
Outstanding SME loan of SME branches was Tk. 988.86
million. The recovery rate was 95 percent which is also
a corner stone of our success in management of overall
portfolio. Total outstanding SME loan of the bank was
Tk 12,230.78 million.
Size-wise SME Qutstanding
Small
11%
Medium
83%
Micro
6%
Agreement signing ceremony with BB for Re & Pre-finance

scheme of JICA fund
PBL signed an agreement with the Bangladesh Bank for

availing Re-finance/Pre-finance facility under JICA fund for
financing to establish new projects, BMRE of existing projects
in the form of fixed asset financing with initial working capital,
which is associated with the investment loan.
PBL arranged various workshops and training programs
during the year. These workshops and training programs
were aimed at capacity development of bankers.
Small
Micro
Medium
Sector-wise SME Qutstanding
Trade
38%
Manufacturing
53%
Service
9%
Trade
Manufacturing
Service
PBL introduced different customized products tailored to

needs of SMEs which are i) Sahaj Rin (Easy Loan), ii)
Chalti Rin, iii) Moushami Rin, iv) Digun Rin, and v) Anchol
Rin. PBL also introduced a customized SME product
Workshop on Existing SME Policy and Responsibility of

Banker organized by PBL
PBL also arranged 3 days long workshop on SME Credit

Risk Management for development of capacity building of 28
Group Leaders at BASA Training Centre at Pekua, Tangail.
To inspire SME entrepreneurs for financial literacy PBL
has distributed tally book in the eve of Pahela Boisakh
1418. With the use of this tally book, business owners
would be able to keep their business record in a more
organized way. Moreover, PBL is a party to various
MFIs in order to eliminate or reduce the possibilities of the
for making available easy finance to SME sector. So far
been ceaselessly trying to contribute to the sector and will
refinance programs executed with Bangladesh Bank

PBL received Tk 301.20 million against 729 clients from
various re-finance scheme of Bangladesh Bank.
Details of other activities including banker-customer
dialogues for development of SMEs are given in

Customer Care chapter of this Annual Report.
Financing women entrepreneurs under SME

Another notable idea in SME financing is the development
of women entrepreneurs. In the new framework of SME,

PBL is giving top priority in developing and harnessing
women entrepreneurs. The bank has designed a separate

product Anchol for women entrepreneurs. PBL disbursed
Tk 58.65 million to 108 women entrepreneurs at lower

interest rates.
Agriculture financing
At the moment, roughly one-fifth of Bangladeshs GDP
originates from agricultural sector, and the sector
absorbs about half of the total labor force of the country.

Agricultural credit is being construed as an integral part
of the modernization of agriculture and commercialization
of rural economy. Agriculture as a sector depends more

on credit than any other sector because of seasonal
variations in farmers returns and a changing trend from

subsistence to commercial farming. In the absence of
necessary working capital for buying water, fertilizer and
pesticides, coupled with it the lack of the knowledge for
their balanced application, farmers often fail to reap a
better harvest from modern technology-led crops.
The Bangladesh Bank has also made agriculture lending
mandatory for all banks including private and foreign

commercial banks. This strategy of Bangladesh Bank has
expanded the scope for inclusion banking. To achieve
the desired goal, the Bangladesh bank also declared that
the banks, having not enough branches in rural areas,
would be allowed to use nongovernmental organizations

(NGOs)/ MFIs linkage for disbursement of farm credit. In
line with Government efforts as well as the Bangladesh
Bank guidelines, PBL also continued its proactive policy

and program support to boost up agriculture financing.
accounts being delinquent. In spite of all odds PBL has

continue doing so in the future for the greater interest of
the country.
Agricultural Loan products of PBL

PBL has been providing agriculture loan in the form
of Abad (for crops loan), Khamar (for farm loan) and
Nabanno (any agri purpose loan) to meet up working
capital and capital expenditure requirements of the farms/

projects/ enterprises/ farmers.
Abad (Crop Loan)
Rural people of Bangladesh are dependent on agriculture.
For helping and encouraging and betterment of rural
people (share cropper, marginal / small / medium scale

farmers) to cultivate crops and vegetables, PBL provides
Abad (Crop Loan) to bear the cost of tilling of land,
fertilizers, pesticides, irrigation, seed etc.
This product has been designed to ensure desired amount

of money for the share croppers, marginal / small / medium
scale farmers at the beginning of cultivation. The farmers
could repay their loan after harvesting time. This product
helps them a lot in terms of benefit as they need no more

to take high interest bearing loan from the local money
launders, businessmen and MFIs/NGOs. Moreover,
this flexible repayment system removes their mental
pressure of weekly /monthly/quarterly installments. By
concentrating on better production farmers are benefiting

in this process and contributing to the national production
over the year.
Crop-Diversification and Multi-cropping / Inter-Cropping

PBL has taken program for changing over the traditional
cultivation system for crop-diversification. To cultivate
multi-crop (potato and banana, potato and maize and

others) in the same field in a season helps to reduce food
insufficiency and food insecurity in the area as well as

reduce the production cost. For cultivating potato and
banana in the same field in a season, PBL disbursed loan
under Abad (Crop Loan) to the farmers at Dinajpur which

was the first of its kind in Bangladesh.
PBL also recognizes Agriculture / Rural Credit as one
Mango Gardening
people into the banking activities and plays a major role
mango production could be increased by utilizing adequate
of the major tools for ensuring inclusion of the rural
Chapai Nawabgonj is a land of mango. PBL observed that
in the overall economic development of the country. In
fertilizers, pesticides, irrigation, seed etc in time. But there
the absence of own branch network the bank has largely

been depending on third party networks (NGOs / MFIs). It
is pertinent to mention that while using third party network
the bank is extremely selective in choosing the NGOs/
was no bank to finance this sector. In order to increase the

mango production and meet the demand thereof, PBL has
started to finance for production of mango under Abad loan
as a pioneer in this sector at Chapai Nawabgonj.

Khamar (Farm Loan)
An
PBL has been providing Khamar Loan to meet up working
Agricultural
capital and capital expenditure requirements of the farms

like fisheries, hatchery, poultry, beef fattening, milching
cow/ dairy, bio-gas plant, poultry/livestock/fish feed
effective monitoring system has been put in place;

credit is provided to the real small,
marginal farmers and share-croppers singly or in a

group following easy process;
Credit
facilities are allowed at rebate rate (4 percent)
producer, duck rearing, integrated farm, solar panel for
for cultivation of pulse, oil seeds and spices to reduce
farm and others related to agriculture.
dependency on import and save huge amount of
Nabanno (Any Agri Purpose Loan)

PBL has been providing Nabanno Loan to the farmers
for purchasing of farm machineries / agri equipments
(irrigation and tilling technology/equipments, thresher,
tractor, harvester etc), solar pumps / solar power operated
irrigational equipment, rural transport (van, rickshaw,
mechanized boat, covered van, truck for carrying poultry/
fish etc.) and to meet up the capital requirement of
nursery farming, weavers (handloom industry), tissue
culture farming.
PBL has been strengthening its agriculture and rural credit
business under the following manner:

Developed Agriculture Financing Policy Manual;
Lunched
3 (three) agriculture loan product named
foreign exchange incurred for importing the items

under interest loss compensation scheme of the
Government;
Women
are given priority for disbursing agricultural/
rural credit;
Up
to 31st December, 2012 total cumulative
disbursement was Tk 3,949.07 million among 91,452

entrepreneurs/farmers (out of which Tk 2,517.35
million was disbursed amongst 89,665 farmers
through 11 NGOs).
Agriculture Loan by purpose
Customers of PBL receive loan for various purposes.
Most of them are related to crops, fisheries, livestock
(dairy, beef fattening, poultry etc.) and poverty alleviation.
Abad (crop loan), Khamar (farm loan) and Nabanno

(any agri purpose loan);
A separate full-fledged Division has been established

named as Agriculture Support Division;
(Seven) Agriculturists have been recruited for
branch and head office and posted accordingly. A

number of experienced officers have been hired and
posted at head office;
Conducted
meeting among the farmers at Jessore,
Chapai Nawabgonj, Dinajpur, Rangpur, Mymensingh

and other places;
PBL
has taken necessary initiatives to create
Agriculture Project Visit
awareness and impart training on agricultural/rural

credit policy and program;
According
to the Agricultural/Rural Credit Policy and
Program, the 3 core sectors viz. crop, fisheries, and

livestock are given priority;
High
Product-wise outstanding
Livestock 30%
Farm Machineries 1%
Irrigation
equipments 4%
Fisheries
8%
Value Crops are given priority in extending credit
facility,
Ensure
timely availability of necessary agricultural
credit for the small and marginal farmers including

share-croppers;
Credit
has been disbursed following area approach
method emphasizing on the comparative advantages

of producing regional crops;
Crop Storage &

Marketing
13%
Crop 37%
Others
3%
Poverty alleviation
4%
Fisheries
Crop
Crop Storage & Marketing
Irrigaton equipments
Poverty alleviation
Farm Machineries
Others
Livestock
Disbursement from 01-01-12 to 31-12-12

Livestock 23%
Farm Machineries 3%
Irrigation
equipments 2%
Fisheries 6%
Crop Storage &

Marketing 19%
Crop 40%
Others
3%
Sector
Crop
Irrigation
equipments
Farm
Machineries
Livestock
Fisheries
Crop torage
& Marketing
Poverty
alleviation
Others
Total
Poverty alleviation
4%
Fisheries
Crop
Crop Storage & Marketing
Irrigaton equipments
Poverty alleviation
Farm Machineries
Others
Livestock
Taka in Million
2012
2011
Disbursement Outstanding Disbursement Outstanding

as on
as on
31.12.2012
31.12.2011
662.36
525.55
175.43
146.36
24.98
63.04
4.09
3.04
41.15
12.62
5.66
4.72
373.22
104.18
422.86
116.88
167.74
193.77
176.52
108.78
317.09
189.72
4.07
3.45
62.29
53.81
41.43
39.48
49.85
44.34
132.22
46.18
1,635.12
1,428.82
724.41
528.53
Islamic Banking
Islamic banking operations of PBL started in the very year
of its establishment in December 1995 through the opening
of Islamic banking branch at Dilkusha, Dhaka. PBL is the
pioneer in such a kind of blending of conventional and
Islamic banking in the country which is followed by many
other banks. With the passage of time, the bank now
carries on its Islamic banking operations through 5 (five)
Islamic banking branches. Objectives of launching Islamic
banking operations by PBL are the followings:
To
cater to the needs of customers who want to have

services in Islamic Shariah compliant modes supporting
the sentiment of people, majority of whom are Muslims
and are akin to the Islamic financial system;
To
introduce the partnership concept of business

operations for ensuring justice in distribution system;
To introduce wealth maximization concept through
profit / loss sharing system in business and
investment and financially weaker section of people
to develop their financial standing through Islamic
banking operation mechanism;
To provide products and services free from interest
suited to the needs of customers and establish justice
in the society;
To do other acts ancillary to the establishment of
exploitation-free society.
Operations of Islamic banking branches are coordinated by
Islamic Banking Division at Head Office and supervised by
Prime Bank Shariah Supervisory Committee, comprised
of a pool of Shariah experts, renowned economists of
the country. The basic functions of Prime Bank Shariah
Supervisory Committee are to offer views on matters
related to Islamic banking operations of the bank from time
to time and assist the Board of Directors by advising them
on matters relating to Shariah. Their recommendation on
Shariah Principles is strictly respected by the Board to
run Islamic banking operations of the bank.
Launching of Islamic banking operation by PBL by
introducing different innovative products and services
based on Islamic Shariah got tremendous response from
a considerable portion of its clientele who are eager to
accept Shariah compliant modern and innovative banking
products and services. PBL is also offering Islamic banking
products and services through Islamic banking service
desks set up at its conventional banking branches.
The bank identifies all of its Islamic banking activities by
adopting a generic name Hasanah- the brand name for
Islamic products and services of the bank, which has been
used in the Quran and the Hadith to denote good deed,
welfare, virtue, beauty spot etc. The strategy to launch
Hasanah brand has proved to be a good move. The
Islamic banking business is growing at a competitive rate
despite various limitations for its expansion. This growth
is also comparable to the overall growth of the Islamic
banking sector of the country.
The Islamic banking manpower of the bank is more than
one hundred for whom the bank arranges regular training
programs on operation of Islamic banking. PBL is an active
member of Central Shariah Board for Islamic banks in
Bangladesh and Islamic Banks Consultative Forum. Thus
the bank is committed to uphold the sentiment of majority
of the people in the country as a bank with a difference.
The Islamic banking branches demonstrated progress in
the year 2012. The profit before provision stood at Tk 0.86
billion during the year whereas deposit and investment
were Tk 16.25 billion and Tk 13.67 billion respectively at
the end of the year. Total import and export businesses
handled by the Islamic banking branches were Tk 13.79
billion and Tk 8.61 billion respectively.

Activities related to Islamic banking- Year 2012
Treasury Function
Islamic Banking Division conducted Hajj Campaign 2012

with a view to provide service to the Hajj Pilgrims and
mobilize deposit in the process. For the purpose, a team
of officials and direct sales executives worked under the
guidance of the Division. During the campaign, 140 agent
accounts were opened and low cost deposit of Tk 3,310
million was mobilized as fees from over 15,000 pilgrims.
Treasury operation concentrated on funding operation

and foreign exchange dealings. Treasury of PBL provides
diversified products and services and has four desks

concentrated on funding operation, liquidity and market
risk management, Primary Dealers operations and
foreign exchange dealings.
Foreign
Exchange
desk:
Foreign
exchange
operations are conducted to meet LC commitment
and funding requirement of the customers. PBL

is one of the leading market makers in different
foreign exchange products mainly USD/BDT spot,
swaps, forward transactions in inter-bank market
and cross-currency dealing (mostly customer driven
transactions) with foreign correspondents abroad.

Treasury has also been funding banks surplus fund
to PBLs overseas finance companies especially
for bill discounting purpose and off-shore banking
units for their smooth business operations including

business under UPAS (Usance Payable At Sight) LC
and refinancing deferred LCs.
Hajj Campaign 2012
Three Iftar Mahfils were held at Dhaka, Chittagong and

Sylhet centrally with all the branches of the cities where
paper was presented on Waqf by renowned Islamic
scholars before a huge gathering. In 2012, three new
deposit products and one investment product were
introduced. Study and analysis for installation of Islamic
banking software was completed and work order was
issued to the selected vendor for the purpose.
Money Market Desk: The money market desk

regularly participates in the inter-bank market of the
country and exercises all types of existing money
market products like call money, term placement,
Repo, Special Repo, ALS, Reverse-Repo etc.

with the Bangladesh Bank and inter-bank mostly
on overnight basis. Besides, USD/BDT Swap is
considered as a very popular money market product

and the money market desk is actively participates in
swap transactions and manages liquidity positions
Asset
Liability Management Desk: Treasury is
the driving force of the Asset Liability Management

Committee (ALCO). It executes the strategies of the
ALCO for effective management and monitoring of

various balance sheet gaps and risk limits set by the
regulator and CRO. It takes various decisions regarding
interest rate structure of deposits, loan pricing,

credit-deposit ratio, contingency funding plan, stress
testing, liquidity coverage ratio (LCR), transfer pricing

mechanism for internal funding and investments in
Iftar Mahfil arranged by PBL
Three meetings of the Shariah Supervisory Committee were
Government securities including corporate bonds by

evaluating the market trend and scenario.
Primary
Dealer (PD) Desk and Fixed Income
arranged in 2012 where different operational issues were
Desk: The Bangladesh Bank devolved Government
conducted Shariah audit and inspection at the Islamic banking
development of the secondary market. But the
arranged Medical Camp at Bishwa Ijtema to provide primary
almost non-vibrant due to unattractive yields. In
reviewed and the Muraqibs of Shariah Supervisory Committee
Treasury Bills / Bonds to the primary dealers for
branches and submitted reports thereon. Besides, the Division
demand for Treasury Bonds in capital market was
health services to the devotees as before.
spite of the difficulties, PBL has continuously been
trying to develop the bond market through trading of
Arabia, Singapore, UAE, UK, Malaysia, USA, Italy and
Treasury Bills and Bonds in the secondary market
Oman. During 2012, remittance arrangement with Hana
and also providing financial advisory services to the
Bank, South Korea and CIMB Bank, Malaysia opened
prospective customers of Government Securities for
new windows for inward remittance.
bond market development. The primary dealer desk
Countrywise Inflow of Foreign Remittance

January-December 2012
is also participating in primary auctions as the agent

of the corporate clients. PBL actively participated in
developing the Primary Dealers Association which
Singapore
17%
Oman
1%
Italy
2%
helped to improve the bond market
Malayasia
2%
Regulatory Compliance: Treasury complied with
others
10%
KSA
38%
regulatory requirement to maintain CRR and SLR.
UAE
14%
The Division also maintained exchange position

(Overbought/ Oversold Position) of the bank in line
with the Bangladesh Bank open position limit set
for PBL. The bank being a primary dealer, at times
felt pressure on liquidity due to higher volume
of devolvement of Treasury Bills / Bonds by the
Bangladesh Bank. The rate of interest in money
market shoot up and in order to stabilize the money
market the primary dealers were asked not to go for
borrowing from money market. The Bangladesh Bank
was supposed to provide support for CRR. However,
in case of any shortfall, interest would be realized but
which would not affect the performance measurement
of the banks by the Bangladesh Bank. Total interest
paid was Tk 199.36 million.
UK
11%
USA
5%
Correspondent Relationship
PBL has
around
wide correspondent relationship with banks
the
world
to
facilitate
international
trade
transactions. As on December 31, 2012, the number of

relationship stood at 660 covering 266 banks spread
across 80 countries. PBL maintains 37 Nostro Accounts

in 10 major currencies with reputed international banks
around the world in all the important global financial

centers. PBL also offers Vostro account service to foreign
correspondents. The bank enjoys sufficient credit lines
from its correspondents including credit limit under TFFP

of Asian Development Bank (ADB) for adding confirmation
to letter of credit as and when needed. During 2012, PBL
Foreign remittance
availed bilateral loan in USD from correspondent banks
In 2012, PBL maintained a growing trend of inward

foreign remittance business throughout the year. The
bank handled total inward foreign remittance of Tk 42,443
million indicating 15 percent growth over that for the year
2011. The Non-Resident Bangladeshis (NRBs) routed
remittance through networks of exchange companies and
banks. Major sources of banks remittance were Saudi
for use in trade finance transactions through Offshore

Banking Units.
Prime Exchange Co. Pte. Ltd., Singapore

The company significantly expanded business in 2012.
Total volume of remittance was SGD 82.56 million in 2012

compared to SGD 46.86 million in 2011, showing growth
of 76.18 percent. The company made profit before tax of

SGD 141,836 in 2012 compared to SGD 104,427 in 2011
recording a growth of 36 percent. The company operates

with two branches in Desker Road and Jurong East
Inflow of Foreign Remittance

(Taka in million)
complying with the regulations of both the Bangladesh

Bank and Monetary Authority of Singapore (MAS). Growth
42,443
in business of the company was possible due to marketing
efforts, personalized service, efficient service platform under

28,433
22,669
RemitFast software and enhanced distribution network.
36,890
The company started remittance through Sonali Bank
26,447
2008
2009
Limited in 2012 which is in addition to existing arrangement

2010
2011
2012
with Pubali Bank Limited. The Bangladesh Bank has

approved opening of third branch for which approval

of MAS is sought and under process. Arrangement for
remittance of Non-Resident Indians (NRIs) through HDFC
Bank, a reputed bank in India, has been finalized in 2012.
PBL Exchange (UK) Limited
During the year 2012, the company made operating profit

of Tk 432.91 million as against Tk 703.40 million in 2011.
Prime Bank Securities Limited
Prime Bank Securities Ltd. was established to provide
The company has been operating with three Branches in
brokerage services in the stock market. During the year
has marked growth despite stiff competition. The volume of
million as against Tk 14.32 million in 2011.
London, Birmingham and Manchester. The business volume
remittance was GBP 19.79 million in 2012 which was 55
percent higher than GBP 12.77 million in 2011. The company
2012, the company made operating profit of Tk 48.10
Information and Communication Technology
incurred operating loss of GBP 115,788 in 2012 compared
PBL has always upgraded itself with the latest technology
has taken some pragmatic steps for further acceleration of
advantages of the technology which has enriched its IT
to reach a better position in 2013.
tremendously increased its customer service as well as
PBL Finance (Hong Kong) Limited
PBL is the pioneer in providing multi-dimensional banking
to operating loss of GBP 150,090 in 2011. The subsidiary
and time-to-time the bank has adopted different
business growth. If implemented, the Company is expected
infrastructure. Technological development of the bank
trust worthiness of the stakeholders towards the bank. Now
Total assets of the company reached to HKD 119.68
products and services with advanced technologies. The
million on December 31, 2011. The company made net
help of the technological advantages. The IT Division is
to HKD 3.15 million in 2011. The main functions of the
dedicated professional workforce which has been built-
discounting facilities against LCs originating from PBL
application. For developing IT backbone the bank has
remittance business. The company has been run by
considering return on investment.
million as on December 31, 2012 compared to HKD 56.29
bank is dedicated towards its customer satisfaction with
profit after tax of HKD 4.32 million in 2012 compared
well equipped not only with technology, but also with a
subsidiary are to advise, negotiate, confirm and provide
up for support as well as development of new satellite
and other Bangladeshi Banks. The company also handles
invested throughout the year in an efficient manner
executive and officials having diverse experience in foreign
The bank successfully implemented the Core Banking
trade business both in Hong Kong and Bangladesh.

Offshore Banking
PBL has been offering Offshore Banking facilities
through 3 (three) Offshore Banking Units (OBU) located

in Dhaka Export Processing Zone (DEPZ), Chittagong
Export Processing Zone (CEPZ) and Adamjee Export

Processing Zone (AEPZ). The total loans and advances
of three OBUs reached to USD 61.30 million equivalent
to Tk 4,895 million as on December 31, 2012 compared
to USD 42.40 million equivalent to Tk 3,470 million as on
December 30, 2011 recording a growth of 41 percent.

During the year 2012, OBUs made operating profit of USD
1.84 million equivalent to Tk 150.32 million as against
USD 1.57 million equivalent to Tk 119.50 million in 2011

with a growth of 26 percent.
Prime Bank Investment Limited

PBL was registered as Merchant Banker with the
Bangladesh in 2001 for starting its Investment Banking
and Advisory services. As per directives of the
System, Switching System to deploy ATM and POS and
secured Wide Area Network. For Core Banking System

the bank selected Temenos T24, a world class and
proven technology, implemented and supported in over
90 countries worldwide. At present the bank has 130

branches under the same network. After implementation
of the system the bank turned to an electronic bank by

reducing manual works. Now PBL is offering real time
online banking where a customer can do transaction from
any point or from any branch or from any ATM (banks own
ATMs and shared ATMs) or SWIFT. Major IT initiatives
during 2012 were:
In-house development team

The In-House Development Team formed under IT Division
developed 13 software as per internal requirement of the

bank and the Bangladesh Bank. PBL has a full-fledged
and experienced In-house Software Development Team
that has already boosted up the quality of services and
automated the internal operations to a great extent by

developing good score of software.
Bangladesh Bank, PBL converted its Merchant Banking
RemitF@st
name and style Prime Bank Investment Ltd. in 2010.
collection through overseas PBL exchange houses
and Investment Division (MBID) into a subsidiary in the
is
web-based
Online
Remittance
Management System developed for real-time remittance
located at Singapore and UK which has been running

successfully for the last two years.
The team also developed and implemented Rsys (Retail
Banking Automation System with notifications to retail
loan Applicants and extensive MIS on retail banking) in
2012, which has automated all the desk jobs of Sales,
Assessment and CAD under Retail Banking Division.
Apart from developing unalienable day-to-day Systems
like CL, CIB, LC Reporting Package, HRIS & Payroll
Management System, Balance Confirmation System,
Centralized Limit Register, the development team is now
in the process of implementing Centralized Fixed Asset
Management System within the first quarter of 2013.
In year 2012, the team also started the project of
Corporate Loan Proposal Tracking System which will
eventually help the management to control and monitor
each corporate loan proposal and approval work flow and
to take appropriate measures on any undue stagnation
found during the life cycle of corporate loan processing.
This System promises to heighten the level of services
presently provided by CBD, CRM and CAD with the
help of real-time tracking mechanism and will eventually
increase all around customers satisfaction.
In 2012, the team completed the development of the first

version of the Internet Banking Application ALTITUDE
to serve the banks customers with various real-time
banking services without requiring them to come to the
bank. Customers can access the application using any
device (for example, Desktop PC, Laptop, any handheld
devices like Mobile Phone, PDA and Tablet etc) that has a
web browser with connectivity to the internet. ALTITUDE
is highly secured which has been acknowledged and
certified by VerySign, the worlds most renowned
Certificate Authority (CA). Another security is used at
ALTITUDE named Two-Factor Authentication (2FA), a
Fool-Proof security on the transactions.
After successfully passing the last four years with the CBS,
the bank is going to upgrade CBS Temenos T24 from R6 to
R12. After signing of SOW (Scope of Work), upgradation
activities will be started. With this upgradation, the bank
also purchased MIS software of Temenos Insight which
will make banks MIS system more robust, prompt and
user friendly.
For the first time in Bangladesh, the bank completed
Information System (IS) Audit by KPMG, Pakistan which
represents a member firm of one of the Big Four auditing
and accounting forms in the world.
branches, SME branches and ATMs. Using end to end

Fiber Optics link, Radio and VSAT link of Licensed
Frequency, the bank successfully deployed 10 branches,
53 offsite and onsite ATM terminals in the year of 2012.
For upgrading CBS Temenos T24 from R6 to R12, the
bank has completed the procurement of total hardware
for Database Server, Application Server, Storage System
and Backup system with related environmental software.
Microsoft Active Directory Service, Antivirus Solution
and other
The bank has now 130 branches which are under the
domain of PRIMEBANK and managed under a central
group policy (complied with guidelines of the Bangladesh
Bank) for every user and computer which ensures
computer and user level desktop security and increased
flexibility to users. Antivirus System has been updated
with new version of Antivirus solution which is centrally
managed for daily updates to computers and ensuring
desktop security through proper security parameters
like desktop level firewall. For increased online financial
transactions, to ensure network level security and for
a reliable secured network for Internet Zone, the bank
included new generation firewall Palo Alto and Email
Security Solution and world class web-gateway to
manage the network in a more efficient way. To monitor
the performance of mission critical servers of all system
at Data Center, Disaster Recovery Site, and branches,
the bank introduced world class Network Management
System CA-Network Management System Solution which
includes Spectrum, e-health and others.
ATM and Switching Network
The bank successfully completed the integration of

card business of the bank with Japan Credit Bureau
(JCB), the 4th largest card issuer in the world.
Under
the network of banks renowned switching
system IST, the bank deployed 53 ATMs, 500 POS

terminals. Additional 50 ATMs and 500 units of GPRS
POS terminals will be deployed very soon.
The
bank successfully completed the integration with
NPS (National Payment Switch) testing system. Basic

transactions (Withdrawal, Reversal, Balance Inquiry)
testing have already been completed.
Using
banks robust switching system IST, the bank
introduced highly secured electronic payment system

Prime Cash, which will enrich the customer services
of Alternative Delivery Channel.
System and Networking
Bangladesh Automated Cheque Processing System

(BACPS)
The bank deployed redundant and robust WAN

Connectivity for smooth operation of Temenos T24 for
PBL implemented BACH phase by phase as prescribed

by the Bangladesh Bank all over the country where Sonali

Bank was the Clearing House. At present 96 Branches are
using Bangladesh Automated Cheque Processing System
(BACPS) and all braches are using the Bangladesh
Electronic Funds Transfer Network (BEFTN).
Under the above facilities, the bank is capable to disburse
cash dividend of different companies, credit card bill within
the bank and other banks and utility bills promptly and
freely. Details on BACPS are given in Customer Care
chapter of this Annual Report.
Alternate Delivery Channels
PBL successfully launched Biometric Smart Card in 2012
to provide financial service for the un-banked and under
banked people in the rural and urban areas by fingerprint
recognition. Moreover, the bank further expanded its ATM
network, Internet Banking, SMS Banking, Phone Banking,
Mobile Banking and KIOSK. A few more services like
Automated Cheque Cash Deposit Machine (CCDM) will
be added soon for the customers of the bank. Details on
alternate delivery channels are given in Customer Care
Inauguration of new branches

The FMD team believes in the time-related positioning of
resources and always tries to achieve the target within the
stipulated time span. In 2012, one of the big challenges
was determining locations based on customer needs and
hiring premises for setting up PBLs ATM booths with a
target of 100. Opening of a new branch involves a series of
actions. The key areas are carrying out detailed feasibility
study of business through R&D Division, obtaining the
Bangladesh Banks permission, site / premises selection
satisfying banks distinctive requirement, testing structural
feasibility of premises, hiring of suitable premises, interior
and exterior design by divisional engineers / architectural
firm, supply of all kinds of electro-mechanical and
electronics equipment and furniture / fixture etc.
Chairman of PBL inaugurating shibpur branch, Narsingdi
In 2012, PBL opened 11 new branches at different places

of the country. One of the branches namely Tejgaon
Branch was opened on bank's own property. Besides, the
bank purchased some properties for opening branches.
Daulatpur Branch at Khulna has already been opened
and one more is in the offing at Patuatuli, Dhaka.
ATM of PBL
Facility Management
Facility management is an integral and fundamental
requirement for any modern organization. To meet the
goals or objectives, a well-planned logistics strategy
is a primary requisite to the successful outcome of any
operation, especially when establishing, conducting and
even expanding business under crucial environments,
anywhere within or beyond borders. In PBL, the function
of FMD (Facility Management Division) team is delegated
with the administration of planning, organizing, controlling,
staffing, designing, selection and decoration for branch
opening, printing, procurement, inventory, warehousing,
distribution, transportation, safety and security, well-knit
supply chain management, hiring, renewal and purchase
of real estate property. In 2012, the facility management
team successfully accomplished few big challenges of
which important ones are highlighted below:
Making and Installation of Solar Energy Generation

System (SEGS):
The facility management should always comprise of
steps with the aim of maximizing output, faster and
efficient resolution of issues at the same time reduction of
internal costs. The facility management team undertakes

every support service as an opportunity to demonstrate
its pledge towards the best possible support to the

stakeholders. Such an endeavor is the installation of
Solar Energy Generation System (SEGS) at low cost

using local resources by banks engineers.
Following the pre-condition of the Bangladesh Bank to

have prior installation of Solar Energy Generation System
before getting electricity connection, FMD ensured timely
commissioning of designated branches. At present, a total

of 17 branches have solar panels installed by the banks
engineers. Gradually, the bank will install solar panel in all
its future branches under the slogan of Save Energy for

Green Bangladesh.
Risk Management
enjoy working with pride. Believing that the human
PBL has always being in the forefront of implementing
resources are main elements behind the success and
of any banking institution may be defined as the possibility
motivating the workforce with contemporary HR policies
business is in fact a business of risk taking. So it is vital to
but also a learning, challenging and rewarding career.
out of these risk ventures. In todays challenging financial
Report chapter of this Annual Report.
different risk management tools and techniques. The Risk
future sustainability of the bank, the bank is developing and
of incurring losses, financial or otherwise. Banking
and attractive benefits. The bank is not only offering a job
manage all these risks efficiently to emerge as the winner
Details of HR related activities are given in Sustainability
and economic environment effective risk management

is must for sustainable growth in shareholders value.
Significant accounting policy
In banking arena, key risks include credit, market,
This management discussion analysis is based
strategic risk, concentration risk, compliance risk etc. The
statements of 2012.
understanding of various risks, disciplined risk assessment
Summary of financial performance of PBL
operational, liquidity, reputation risk and other risks like

risk management strategy of PBL is based on a clear
and measurement procedures and continuous monitoring.
Details of Risk Management are given in the "Risk

Management" chapter of this Annual Report.
Capital Management
Capital management of the bank is based on the objective
to maintain an adequate capital base to support the
projected business and regulatory requirement. This is

done by drawing an annual planned business growth vis-
-vis capital requirement. PBL recognizes the impact of
shareholders returns on the level of equity and seeks

to maintain a prudent balance between Tier-I and Tier-II
capital. As per directives of Bangladesh Bank, the banks
are required to maintain capital at 10.00 percent of risk-
weighted assets under Basel-II. Tier-I capital should be

minimum 5 percent of total capital.
The banks capital fund is divided into two parts- Tier-I and
Tier-II capital. Tier-I includes the equity (paid-up capital,
share premium, statutory reserve and retained earnings)

and Tier-II includes general provision on unclassified
loans and advances, revaluation reserves, unsecured
subordinated debt and exchange equalization account.

Total consolidated capital fund of the bank increased by
Tk 1,687 million and stood at Tk 25,916 million during
2012. Tier-I capital grew by Tk 1,920 million and stood
at Tk 20,664 million during the year under review. Total
consolidated capital fund is equivalent to 12.64 percent

of total risk weighted assets. More details regarding
on the significant accounting policies and financial
Particulars
Operating income
Operating expenses*
Profit before tax and provision
Net profit before tax
Net profit attributable to shareholders
Total assets
Loans and advances
Deposits
Shareholders equity
Net return on equity
Cost income ratio*
Non-performing loan ratio
Capital adequacy
Taka in million
2012
13,492
4,941
8,551
5,335
2,072
236,833
160,890
182,053
20,787
13.53%
36.62%
3.83%
12.64%
2011
11,559
4,132
7,427
6,766
2,780
199,950
138,848
159,816
19,095
20.19%
35.75%
1.37%
12.46%
* Total operating expenses of PBL increased by 19.58
percent during the year mainly due to increase in personnel
and other operating expenses. To match with the growth of

SME and retail business and branch expansion a number of
manpower was recruited along with sales force. Moreover,
to keep the salary package competitive in the industry, there
was upward revision of the packages in the last quarter

of 2011 which had full effect in personnel expenses in the
year 2012. However, the enhancement of the package will

motivate our employees to do even better in future and
targeted increase of business especially in SME and retail

segments will benefit the bank in broad spectrum. PBL also
made donation amounting to Tk 213.41 million to Prime
capital management are given in the Market Discipline-
Bank Foundation to carry on various CSR activities. PBL
this Annual Report.
promotional and advertisement expenses. This strategy
Human Resources
ratio was 36.62 percent in 2012 which slightly increased
Disclosures on Risk Based Capital (Basel-II) chapter of
The bank is working with a vision of converting human

resources into human capital through appropriate
knowledge, skills, abilities and personal attribution. A
healthy environment has been created where employees
also focused on developing brand image and increased
added value to the business. The banks cost income

from 35.75 percent in 2011 due to increased investment
in branch expansion and development of IT infrastructure.
Considering the factors stated above, the ratio indicates

the satisfactory operating efficiency of the bank.

Profits and Dividends
Loans
Operating
income increased by 16.72 percent to Tk

13.49 billion in 2012 compared to Tk 11.56 billion
in 2011. Operating expenses increased by 19.58
percent and stood at Tk 4.94 billion in 2012 compared
to Tk 4.13 billion in 2011. As a result, profit before
provision increased by 15.13 percent to Tk 8.55 billion
in 2012 compared to Tk 7.43 billion in 2011. Profit
before tax decreased by 21.15 percent to Tk 5.34
billion due to higher loan provision requirement as per
new loan classification and provisioning policy by the
Bangladesh Bank and net profit after tax decreased by
25.73 percent to Tk 2.70 billion. Net profit attributable
to shareholders stood at Tk 2.07 billion;
Net
return on equity for 2012 was 13.53 percent

compared to 20.19 percent in 2011;
Earnings
per share was Tk 2.88 in 2012 compared to

Tk 3.88 in 2011;
Board of Directors recommended stock dividend of 10

percent and cash dividend of 10 percent for the year 2012.
Profit before Tax by segments

Particulars
Conventional banking
Islamic banking
Off-shore banking
Total
Conventional
to profit;
Off-shore
The
Taka in billion
2012
2011
Growth (%)
4.33
5.82
(25.60)
0.12
25.79
0.86
0.15
5.34
0.83
6.77
3.41
(21.15)
and advances increased by Tk 22.04 billion

and stood at Tk 160.89 billion as at December 2012
indicating a growth of 15.87 percent;
Total deposits grew by Tk 22.24 billion and stood at
Tk 182.05 billion as at December 2012 indicating a
growth of 13.91 percent;
Non-performing loan ratio stood at 3.83 percent in
2012 compared to 1.37 percent in 2011 due to the
change in loan classification and provisioning policy
by the Bangladesh Bank;
Capital adequacy ratio as per Basel-II stood at
12.64 percent on consolidated basis at the end of
December 2012 which was 12.46 percent at the end
of December 2011.
Deposits
Core
customer deposits continued to increase.

Customer deposits consist of 98.22 percent of total
deposits as at December 2012;
Savings deposit of the bank showed growth of 6.94
percent and its share to total deposit stood at 10.54
percent;
Low cost and no cost deposits showed growth of
11.72 percent. However, high cost deposits registered
a growth of 15.00 percent as liquidity pressure in the
market compelled the bank, a Primary Dealer, to go
for mobilization of additional high cost deposits to
purchase treasury bills / bonds which were devolved
by the Bangladesh Bank;
banking remained the main contributor
Growth and Mix of Deposite
banking showed strong growth of profit;
profitability of conventional banking and Islamic

banking reduced due to higher provision requirement
resulting from new loan classification and provisioning
policy by the Bangladesh Bank.
Profit before Tax of PBL by Segments
2008
Conventional Banking
2009
High Cost Deposit
2010
2011
Low Cost Deposit
2012
No Cost Deposit
81.03 %
Islamic Banking
16.15%
Balance Sheet Growth, Asset Quality and Capital Position

PBLs
total asset increased by Tk 36.88 billion and

stood at Tk 236.83 billion as at end of December
2012 indicating a growth of 18.45 percent;
Strong
brand image, efficient customer services

along with retail liability campaign were keys to the
commendable growth rate.
Loans and advances

Loans and advances were well spread. Retail and
SME sector showed significant growth during 2012;
Phase out of lending interest rate caps was initiated
in March 2011 by the Bangladesh Bank starting with
loans other than industrial term loans and loans for
export, agriculture and essential imports. As a result,
the spread of the bank gradually improved in spite
of increase of interest rates on deposits arising from

tight liquidity position in the market;
Non-performing loan increased during the year by Tk
4.26 billion due mainly to the new loan classification
and provisioning policy by the Bangladesh Bank and
stood at 3.83 percent which is much below the market
average of 10.03 percent. As such the asset quality
may be termed as strong;
PBL made adequate provision against loans and
advances as per the Bangladesh Bank guideline.
Cash flow statement of PBL
During the year under review, PBL had a net cash inflow
of Tk 2,824 million as shown below:
Particulars
Net cash flows from operating activities
Net cash flows from investment activities
Net cash flows from financing activities
Net increase / decrease in cash
Taka in million
2012
4,395
(791)
(780)
2,824
2011
7,466
(2,535)
(288)
4,643
Net Cash flows from operating activities

The major component of net cash flow from operating
activities is operating profit by eliminating the effect of
depreciation and provisions. Net cash flow was positive
as the increase in loans and advances and purchase of
trading securities (treasury bills) were adequately covered
by customer deposits and borrowings from the Bangladesh
Bank under repo facilities provided to primary dealers.
Net Cash flows from investment activities
Net cash flow was negative as the bank realized sale
proceeds from securities less than the amount for
purchase of land and building for its business and make
payment against lease obligations.
Net Cash flows from financing activities
Net cash flow was negative as 10 percent cash dividend
for 2011 was distributed to the shareholders in 2012.
Liquidity statement
From
the liquidity statement it transpires that there is
minimal negative gap till 1-3 months bucket, moderate

positive gap in over 3 months-5 years bucket and there
is a huge positive gap in over 5 years maturity bucket.
So the cumulative gap is positive and pressure from

liquidity is minimal. In reality, above 90 percent of
fixed term deposits are renewed on maturity. As such,
the negative gap actually converts into positive gap.
In
order to meet the withdrawal demand Bank
maintained adequate liquid assets as per regulation.
Following CRR and SLR ratio was maintained as
at December 31, 2012 as against the regulatory

requirement:
Particulars
Cash Reserve Requirement (CRR)
Statutory Liquidity Ratio (SLR)
Required
(%)
6.00
Maintained
(%)
6.06
19.00
35.54
Managing Risk
PBL Group recognizes and takes proactive measures
to manage various risks posed by the ever-changing
business environment. These risks which include credit
risk, market risk, liquidity risk and operational risk are
comprehensively dealt with and systematically managed
by established limits and control. PBL established a
structured frame work for risk management which is
intended to balance risk against returns. Details of risk
management of PBL are given in "Risk Management"
chapter of this report.
Monitoring performance through Key Performance
Indicators
The bank tracks the performance against number of
bench marks known as key performance indicators.
The KPIs fall under two categories- financial and nonfinancial. The KPIs are used to track performance against
the planned targets, comparison of previous years results
and industry bench mark.
Financial key performance indicators
Deposits
and loans are the two important elements

considered in monitoring the performances. This
helps the management to plan business expansion
vis--vis liquidity. Deposit performance is measured
in terms of cost of deposits, mix of deposits. Credit
is monitored in terms of yield on advance and
impairment charges. PBL kept the lead in deposits
and loans and advances among the conventional
private commercial banks;
Asset and liability mix is monitored to ensure
expected profitability, efficiency as well as to achieve
diversification;
Off-balance sheet exposure i.e., letter of credit, export
and guarantee are monitored as these are important
sources of fee based income. Margin and commission
aspects are looked into;
Revenue growth and revenue mix indicate the
business growth and sources of income. This helps
the management how well is our business mix and
what actions should be taken for a balanced growth;
Cost to income ratio is an important tool which the
management uses to determine the efficiency of
consumption of resources for creating income;
NPL
ratio measures the asset quality of the bank and
helps in managing asset portfolio;
Net profit before tax measures the operating efficiency
of the management and is important for determining

the productivity of the employees;

Return
on average equity measures the return on the
average capital invested in the business;
The
steady dividend policy of PBL aims to deliver
sustainable and growing returns to shareholders by

remaining a responsible corporate citizen;
The
earnings per share ratio shows the level of
earnings generated per ordinary shares.
Non-financial key performance indicators

The
most important indicator is customer satisfaction.
It is the key to the development of business. Research
and Development Division reviews the customer

satisfaction level. It also undertakes mystery shopping
to find out efficiency of our customer service system;
Through ATM
usage survey, we can track the number
of transaction processed, resilience of our system

in terms of service availability target. The survey
indicates gradual increase of transactions indicating
customer satisfaction;
As
PBL always emphasize for being compliant, above
all the issues compliance status is regarded as a very

important non-financial KPI in PBL.
Product and Services and Information Technology

PBL will depend more on technology and shall convert its
products supported by the core banking software.
Risk factors
It is needless to say that there are certain risk factors
which are external in nature and can affect the business

of the bank. The factors discussed below can significantly
affect the business:
General
business and political condition
PBLs performance greatly depends on the general
economic conditions of the country. The effect of

recession is still unfolding which may result to slow
down in business environment. Political stability is

must for growth in business activities.
Changes
in credit quality of borrowers
Risk of deterioration of credit quality of borrowers is
inherent in banking business. This could result due to

global economic crisis and supply side distortion. The
changes in the import prices affected the commodity
sectors and ship breaking industry. Deterioration in

credit quality requires provisioning.
Changes
in policies and practices of regulatory

bodies to revise practices, pricing and
responsibilities of the financial institutions
PBL is subject to regulations and compliance of
regulation is must. Changes in policies with regard
to interest rates, pricing have significant effect on

the performance of the bank. Bangladesh Bank is
expected to continue its persuasion to reduce the
spread and charges further which is likely to affect the
performance. Changes in provisioning requirement
will also affect the performance of the bank.
with Basel-II
Basel-II is fully effective from 2010 and PBL has
complied with respect to credit risk management, its
supervision and establishment of effective internal
control. The establishment of effective control requires
more investment in technology and operating expenses
are likely to increase. The rating of the borrowers is
being done. Basel-III is yet to be implemented in
Bangladesh but the bank has been in the process for
mind set-up to prepare for the new accord.
Volatility in equity market
The Bangladesh Securities and Exchange
Commission and the stock exchanges improved their
supervisory role but the equity market is still volatile.
The recession fear also added to the volatility. If
volatility continues it is likely to affect the performance
of the bank.
Compliance
Changes
in market conditions
Changes in market conditions particularly interest
rates on deposits and volatility in foreign exchange
market is likely to affect the performance of the bank.
Depositors are becoming increasingly price sensitive
and any unilateral upward change by a bank will exert
pressure on interest rate structure of the banking
sector. It is feared that wage earners remittances may
decline due to fall in job opportunity in international
market. Unless offset by export performances, there
may be pressure in the foreign exchange market.
The risk of litigation
In the ordinary course of business, legal actions,
claims by and against the bank may arise. The
outcome of such litigation may affect the financial
performance of the bank.
Success of strategies
PBL is proceeding with its strategic plan and its successful
implementation is very important for its financial
performance. Major deviation due to external and internal
factors will affect the performance of the bank.
Operational risk
Operational risk is inherent to all businesses more so
when the operation is technology based. PBL is now
using its core banking software Temenos T24, but
that requires other hardware and software support.
Although all risk mitigation techniques is taken but it
is not certain that there may not be any major failure in
the operating system arising from error, fraud etc. This
type of failure may impact the performance of the bank.
Management Teams
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Risk Review
Maintaining discipline in Risk Management
PBLs balance sheet remains

strong and diversified. We also remain highly
liquid. We have a robust risk governance
structure and a dedicated risk team.
Risk Profile
Diversified
Portfolio
Strong Liquidity
Position
Robust Risk
Governance
Structure &
Dedicated
Teamwork
Risk
Return
Risk Management
Risk is the probability that an investments actual return
will be different than expected which includes the
possibility of losing partial or full of the original investment.
Risk is an integral part of the banking business and
PBLs aim is to deliver superior shareholders value
by achieving an appropriate trade off between risk and
returns. In banking arena, key risks include credit, market,
operational, liquidity, reputation risk and other risks like
strategic risk, concentration risk, compliance risk etc. The
risk management strategy of PBL is based on a clear
The risk management policy of the bank operates under
5 broad principles:
Oversight by the Board / Executive 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 covering
credit risk, operational risk including money laundering
risk, market risk and liquidity risk;
Dedicated independent Risk Management Units
viz. Credit Risk Management Department, Credit
Administration Department, Credit Monitoring and

Recovery Department, Internal Control and Compliance
Division, Internal Audit & Inspection Department, IT
Audit Department and money laundering risk through
Chief Compliance Officer of the bank and Compliance
Officers posted at different branches;
Dedicated committees at management level has been
set up to monitor risk viz. credit risk through Credit
Review Committee / and Risk Management Unit,
operational risk through Management Committee and
Internal Control and Compliance Division, market and
liquidity risk through Asset Liability Committee (ALCO)
and information risk through MRS Committee.
In order to streamline risk control features in a more
effective manner, PBL has put in place its Standard
Operating Procedure (SOP) in line with internationally
accepted best practices. SOPs cover all operating
departments including Corporate Banking, SME Banking,
Retail Banking, Credit, Foreign Exchange, Treasury,
Human Resources and Financial Administration. The
SOPs include all processes related to the initiation,
maintenance, settlement / closure and recording for
the entire range of products offered by the bank. SOPs
help the bank maintain control over its operations, clarify
the links with the IT system, and act as an effective
communication tool that will reduce training time, and
improve risk management and work consistency.
Principal Uncertainties
Risk
Description
Mitigants
D e t e r i o r a t i n g Deteriorating macroeconomic conditions can have an

macroeconomic impact on banks performance via their influence on
conditions
personal expenditure and consumption patterns; demand
for business products and services; the debt service burden
of consumers and businesses; the general availability of
credit for retail and corporate borrowers; and the availability
of capital and liquidity funding for banks business
Balance risk and return taking into account

of changing conditions through the economic
cycle.
Monitor economic trends in markets very
closely and continuously review the suitability
of banks risk policies and controls
The nature and impact of future changes in economic

policies, laws and regulations are not predictable and may
run counter to banks strategic interests. These changes
could also affect the volatility and liquidity of financial
markets, and more generally the way the bank conducts
business and manages capital and liquidity
Keep a close watch on key regulatory

developments in order to anticipate changes
and their potential impact on banks
performance
Financial Market Financial market volatility or a sudden dislocation could

Instability
affect banks performance, through its impact on the markto-market valuations of assets in banks available-for-sale
and trading portfolios or the availability of capital or liquidity
Financial market instability also increases the likelihood
of default by banks corporate customers and financial
institution counterparties
The risk of fraud and other criminal activities is growing
Risk of fraud
as criminals become more sophisticated and as they
take advantage of the increasing use of technology in
the society
Assess carefully the performance of banks

financial institution counterparties, rate them
according to their systemic importance,
adjusting banks exposure accordingly
Maintain
robust
suitability
and
appropriateness processes
Changes in
regulations
and laws
Have a broad range of measures in place to

monitor and mitigate this risk
Controls are embedded in banks policies
and procedures across a wide range of
activities, such as origination, recruitment,
physical and information security
Risk Management
Risk Management Process
PBLs risk management process is based on a clear
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 in PBL consists of:
E. Monitoring: Risk monitoring is used to check whether

the risks actually incurred lie within the prescribed limits,
thus ensuring an institutions capacity to bear those risks.
The above process of risk management has been
undertaken in PBL in a cyclical manner which implies that
if any risk(s) remains un-attended, that will be addressed
though the repetition in the process which started with
identification of those factors and the process continues.
A. Identification;
B. Measurement;
C. Aggregation;
D. Planning and controlling;
E. Monitoring.
A. Identification: A banks risks have to be identified
before they can be measured and managed. Typically
PBL distinguishes the following risk categories:

Credit risk;
Market risk;
Operational risk;
Liquidity risk;
Reputation risk;
Islamic banking risk.
B. Measurement: The consistent assessment of the

above-mentioned types of risks is an essential prerequisite
for successful risk management. Credit risk assessment
and measurement in PBL is calculated on the basis of
possible losses from the credit portfolio. Potential losses
in the credit business can be divided into expected losses
and unexpected losses. Expected losses are derived from
the borrowers expected probability of default and the
predicted exposure at default less the recovery rate, i.e.,
all expected cash flows, especially from the realization of
collateral. The expected losses should be accounted for
in income planning and included as standard risk costs
in the credit conditions. Unexpected losses result from
deviations in losses from the expected loss.
C. Aggregation: When aggregating risks, it is important
to take into account correlation effects which cause a
banks 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 & Controlling: Furthermore, risk
management in PBL has the function of planning the
banks overall risk position and actively managing the
risks based on that plan. Managing the risks should be
taken for the selective limitation of risk positions as well
as the mitigation, or possibly increase of these positions
by means of financial instruments or suitable techniques.
Credit Risk Management

Principles for the Management of Credit Risk in PBL
While financial institutions have faced difficulties over
the years for a multitude of reasons, the major cause of
serious banking problems continues to be directly related
to lax credit standards for borrowers and counterparties,
poor portfolio risk management, or a lack of attention to
changes in economic or other circumstances that can
lead to a deterioration in the credit standing of a banks
counterparties. Credit risk is most simply defined as the
potential that a banks borrower or counterparty will fail to
meet its obligations in accordance with agreed terms. The
goal of credit risk management is to maximize a banks risk
adjusted rate of return by maintaining credit risk exposure
within acceptable parameters. The effective management
of credit risk is a critical component of a comprehensive
approach to risk management and essential to the longterm success of any banking organization. Thats why,
a risk based asset review framework has also been put
in place wherein the frequency of asset review would be
higher for high exposure cases and/or lower credit rating.
The sound practices set out in this document specifically
address the following areas:
Establishing an appropriate credit risk
environment;
Operating under a sound credit granting process;
Maintaining an appropriate credit administration,
measurement and monitoring process; and
Ensuring adequate controls over credit risk.

As part of this framework, the following sets of principles

are used for the sustainable risk management culture.
Balancing Risk
and Return
Responsibility
Accountability
Anticipation
Competitive
advantage
measuring, monitoring and controlling any type of risk

associated with the strategy. Such policies and procedures
address credit risk in all of the banks activities and at both
the individual credit and portfolio levels.
Risk is taken in support of the

requirements of banks stakeholders,
in line with banks strategy and within
its risk appetite
It is the responsibility of all
employees to ensure that risktaking is disciplined and focused.
PBL takes into account of its social
responsibilities and its commitments
to customers in taking risk to provide
a return
Risk is taken only within agreed
authorities and where there is
appropriate
infrastructure
and
resource. All risk-taking must be
transparent, controlled and reported
PBL seeks to anticipate future risks and
ensure awareness of all known risks
The bank seeks to achieve
competitive
advantage
through
efficient
and
effective
risk
management and control
The banks ensures that the risks inherent in products and

activities new to them are subject to adequate procedures
and controls before being introduced or undertaken, and
approved in advance by the Board of Directors or its
appropriate committee. In order to streamline risk control
features in a more effective manner, PBL has put in
place Standard Operating Procedure (SOP) in line with
internationally accepted best practices.
B. Operating under a sound credit granting process
The bank is operating under sound, well defined credit-granting
criteria. These criteria include a thorough understanding of
the borrower or the counterparty, as well as the purpose and
structure of the credit, and its source of repayment.
Credit facilities are allowed in a manner so that credit
expansion goes on ensuring optimum asset quality i.e.,
banks standard of excellence shall not be compromised;
PBL carefully avoids name lending. Credit facility is
being allowed absolutely on business consideration
after conducting due diligence;
Risks inherent in a credit proposal are being identified
and appropriate mitigating factors are applied;
Collateral offered against a credit facility is properly
valued and verified by the concerned Relationship
Officer and / or Relationship Manager and re-valued
and re-verified annually in the subsequent period(s). In
addition, the same collateral is valued and verified by an
enlisted surveyor of the bank which is now applicable for
all customers irrespective of any amount;
The credit risk management policy of PBL operates under

the following broad principles:
A. Establishing
environment
an
appropriate
Credit
Risk
The Board of Directors has the responsibility for approving

and periodically reviewing the credit risk strategy and
credit risk policies of the bank. The strategy reflects
banks tolerance for risk and the level of profitability the
bank expects to achieve for incurring various credit risks.
Senior management has the responsibility for implementing
the credit risk strategy approved by the Board and for
developing standard policies and procedures for identifying,
CREDIT RISK
Business
Industry Risk
Financial Risk
Management
Risk
Leverage
Size of
Business
Experience
Security
Coverage
Liqudity
Age of
Business
Succession
Collateral
Coverage
Profitability
Business
Outlook
Team Work
Support
Coverage
Industry
Growth
Relationship
Risk
Security Risk
Account
Conduct
Utilization
of Limit
Compliance of
Coverants/
Condition
Personal
Deposits
Market
Competiton
Barriers to
Business
Credit Risk Components and Key Paramenter

s
Risk Management
Risk
grading of the accounts have been done as

per the Bangladesh Banks guidelines. Any credit
approval / sanction shall be subject to the banking
regulations in force or to be imposed by the regulatory
body from time to time and to the changes in the
banks policy. Compliance Report on CRG at the end
of each quarter to be given to CRM at Head Office.
Data collection check list and limit utilization format
are prepared for regular assessment. Internal Audit
& Inspection Division independently reviews the risk
grading at the time of auditing the branches.
Credit Risk Components and Key Parameters

The bank has established overall credit limits at the level
of individual borrowers and counterparties, and groups of
connected counterparties that aggregate in comparable
and meaningful manner for different types of exposures,
both in the banking and trading book and on and off the
balance sheet.
PBL always complies with the prevailing banking
regulations regarding Single Borrower Exposure Limit set

by the Bangladesh Bank from time to time. Credit facility
to a single customer (Individual, Enterprise, Company,
Corporate, Organization, and Group) shall be treated as
Large Loan if total limit/disbursement amount exceeds 10
percent of the total capital of the bank. PBLs total Large
Loan Portfolio exposure shall not exceed 56 percent of
the total outstanding loans and advances at any point of
time as per Master Circular on Single Borrower Exposure
Limit of BRPD circular no 5 dated April 09, 2005.
Sales
Acquisition/
Credit-specific
Customer
Collect and
Review Data
Executive Committee of the Board approves the proposals

beyond the authority limit of the Credit Committee. The
Board of Directors reviews the proposals approved by the
Executive Committee.
All extensions of credit made on an arms length
basis. In particular, credits to related companies and
individuals must be monitored with particular care and
other appropriate steps taken to control or mitigate the
risks of connected lending. Credit operation of the bank
should contribute at optimum level within the defined
risk limitation. In other words, credit facilities should be
extended in such a manner that each deal becomes a
profitable one so that the bank can achieve growth target
and superior return on capital.
C. Maintaining an appropriate credit administration,
measurement and monitoring process
A system has been put in place by the bank for ongoing
administration of various credit risk-bearing portfolios.
Dedicated independent risk management units like Credit
Risk Management Unit, Credit Administration Division,
Credit Monitoring and Recovery Department, Internal
Control and Compliance Division, and Internal Audit &
Inspection Department are developed for these purposes.
Dedicated committees at management level has been set
up to monitor risk viz. credit risk through Credit Review
Committee / and Risk Management Unit.
PBL has a system of tracking Early Alert Accounts. An Early
Alert Account is one that has risks or potential weaknesses
of a material nature requiring monitoring, supervision, or
close attention of the management. If such weaknesses
Risk Analysis
Credit Review
Collateral and
Risk assessment
Processing
Documentation
Approval
Implementation
of Credit Decision
Credit approval process in PBL sub-divided into a large number of individual process steps
The bank has a clearly-established process in place for
approving new credits as well as the extension of existing
credits. A thorough credit risk assessment is done before
granting loans. The Credit Risk Assessment includes
borrower risk analysis, industry risk analysis, historical
financial analysis, projected financial performance, the
conduct of the account, and security against the proposed
loan. The assessment originates from relationship
manager / account officer and is approved by Credit
Committee at Head Office. The Credit Committee under
delegated authority approves the credit proposals.
are left uncorrected, they may result in deterioration of the

repayment prospects for the asset or in the banks credit
position at some future date with a likelihood of being
downgraded. Early identification, prompt reporting and

proactive management of Early Alert Accounts are prime
responsibilities of all Relationship Managers / Officers
and the whole process is a continuous one. An Early Alert

Report is completed by the RM and sent to the approving
authority in CRM for any account that is showing signs
of deterioration. The Risk Grade is then changed and

referred to CRM for assistance in recovery.
The bank has also put a system in place for monitoring
levels, consistent with prudential standards and internal
the adequacy of provisions and reserves. For NPL
controls and other practices to ensure that exceptions to
the condition of individual credits including determining

Provisioning and Write-off, the guidelines established
by the Bangladesh Bank for CIB reporting, provisioning

and write-off of bad and doubtful debts, and suspension
of interest are followed in all cases. The Recovery Unit
(RU) Account Manager determines the Forced Sale

Value (FSV) of NPL accounts. Forced Sale Value is
the amount that is expected to be realized through the

liquidation of collateral held as security or through the
available operating cash flows of the business net of
any realization costs. Provision is maintained for any
shortfall in the FSV to cover total loan outstanding once

an account is classified.
PBL has information systems and analytical techniques
that enable management to measure the credit risk
inherent in all on- and off-balance sheet activities. The
management information system should provide adequate

information on the composition of the credit portfolio
including identification of any concentrations of risk.
All credit extensions must comply with the requirements
of banks Memorandum and Articles of Association, Bank

Company Act, 1991 as amended from time to time, the
Bangladesh Banks instruction circulars, guidelines and
limits. The bank has established and enforced internal
policies, procedures and limits are reported in a timely

manner to the appropriate level of management.
PBL has a system in place for managing problem credits
and various other workout situations. All NPLs are

assigned to Account Manager(s) within the Recovery
Department, who is responsible for coordinating and
administering the action plan / recovery of the account and

serve as the primary customer contact after the account is
downgraded to substandard.
Liquidity Risk Management

Liquidity risk is the risk to timely meet obligations when
they come due without incurring unacceptable losses.
The liquidity risk of banks arises from funding long term

assets by short term liabilities.
Liquidity risk can arise due to market liquidity or funding
liquidity. Market liquidity risk is defined as an asset

cannot be sold due to lack of liquidity in the market due
to widening of bid / offer spread. Funding liquidity risk is
defined as risk that liabilities cannot be met when they fall

due or can only be met at an uneconomic price.
other applicable laws, rules and regulations, banks Credit
To manage liquidity risk, PBL maintains diversified and
all relevant circulars in force. Any deviation from the internal
and institutional deposits. The principle responsibility of the
The portfolio should always be well diversified with
Division which maintains liquidity based on historical
size, economic purpose etc. Concentration of credit shall
funding requirement, sources of fund, options for reducing
Risk Management Policy, Credit Operational Manual and
stable funding base comprising of core retail, corporate
policy of the bank must be justified and well documented.
liquidity risk management of the bank rests with Treasury
respect to sector, industry, geographical region, maturity,
requirements, current liquidity position, anticipated future
be carefully avoided to minimize risk.
funding needs, present and anticipated asset quality,
PBL takes into consideration potential future changes in
economic conditions when assessing individual credits
and their credit portfolios, and assesses their credit

risk exposures under stressful conditions. An important
element of sound credit risk management involves
discussing what could potentially go wrong with individual
present and future earning capacity, present and planned
capital position. ALCO monitors the liquidity management

of Treasury by i) setting tolerance limit for cumulative cash
flow mismatches, ii) setting limit on loan to deposit ratio,
iii) setting limits on dependence on institutional deposits
which are volatile in nature.
credits and within the various credit portfolios, and
From the liquidity statement (Annexure-I) it can be
of capital and provisions.
million, contractual maturity of liability within 1 year is Tk
factoring this information into the analysis of the adequacy

D. Ensuring adequate controls over credit risk
PBL has established a system of independent, ongoing
credit review and the results of such reviews are

communicated directly to the Board of Directors and
senior management.
PBL ensures that the credit-granting function is being
properly managed and that credit exposures are within
seen that out of total deposit liabilities of Tk 182,052.87

131,218.67 million. In the liquidity statement it transpires
that there is minimal negative gap till 1-3 months bucket,
moderate positive gap in over 3 months-5 years bucket
and there is a huge positive gap in over 5 years maturity

bucket. So the cumulative gap is positive and pressure
from liquidity is minimal. In reality, above 90 percent of
fixed term deposits are renewed on maturity. As such, the

negative gap actually converts into positive gap.
Risk Management
Market Risk
Market Risk is the risk of loss in positions arising from
movements in market prices. Market risks include:
Equity Risk: The risk that stock or stock index

price and/or their implied volatility will change
Interest Rate Risk: The risk that interest rates

and/or their implied volatility will change.
Foreign Exchange Risk: The risk that foreign
exchange rates and/or their implied volatility will
more interest income when rates rise and less interest

income when rates fall. If the loan is funded with fixed rate
deposits, the banks interest margin will fluctuate.
Model Risk: The risk is presented by mathematical
models used to price assets and liabilities not directly
quoted on the market. Interest rate pricing models are
based on reasonable assumptions about the behavior of
interest rates that may fail in particular market conditions.
change.
The short term impact of changes in interest rates is on
prices and/or their implied volatility will change.
changes in interest rates impact the cash flows on the
Commodity Risk: The risk that commodity
Treasury Division manages the market risk and ALCO monitors

the activities of Treasury Division in managing the risk.
Interest Rate Risk:
the banks Net Interest Income (NII). In a longer term,

assets, liabilities and off-balance sheet items, giving rise to
a risk to the net worth of the bank arising out of all re-pricing
mismatches and other interest rate sensitive position.
Maturity grouping of rate sensitive assets and liabilities of
the bank (see table on Interest Rate Risk Analysis) shows
moderate negative gap in the first quarter and moderate
positive gap in the rest three quarters. If market rates shift
upward by 1 percent the bank will enjoy a positive earning
to the tune of Tk 27.34 million during 1 year period and vice
Interest rate risk is the risk (variability in value) borne by
versa. The impact is very insignificant compared to total
to variability of interest rates. In general, as rates rise, the
as stipulated by the Bangladesh Bank. The statement also
an interest-bearing asset, such as a loan or a bond, due
revenue of the bank and also within the acceptable limit
price of a fixed rate bond will fall, and vice versa. Interest
shows that there will be 2.05 percent impact on quarterly
rate risk is commonly measured by duration. Banks face

many types of interest rate risk. They are as follows:
operating profit which is also within the stipulated limit of

10 percent.
Foreign Exchange Risk Management
It is the risk that the bank may suffer losses as a result
of adverse exchange rate movements during a period
in which it has an open position in an individual foreign
Basis Risk: The risk is present when yields on assets and

costs on liabilities are based on different bases. In some
circumstances, different bases will move at different rates

or in different directions, which can cause erratic changes
in revenues and expenses.
currency. In addition, the bank is also exposed to interest

rare risk and settlement risk on account of its foreign
exchange business.
Foreign exchange risks are measured and monitored
by Treasury Division. To evaluate the extent of foreign
Yield Curve Risk: The risk is presented by differences
exchange risk, a Liquidity Gap Report is prepared for each
term rates are normally long term rates and banks earn
customer transaction resulting in a long or a short position
term assets. But the relationship between long term and
limit of the bank is USD 36.15 million equivalents to Tk
between short term and long term interest rates. Short
currency. Gap or mismatch of maturities can arise due to a
profit by borrowing short term money and investing in long
for the bank. The overall foreign currency exposure
short term rates can shift quickly which can cause erratic
2,886.57 million or on overnight basis as stipulated by the
changes in revenues and expenses.
Bangladesh Bank. The sum of the net overall positions
Re-pricing Risk: The risk is presented by assets and
in different currencies results in a positive net assets
For instance, a loan with a variable rate will generate
not exceed the stipulated limit.
liabilities that are repriced at different times and rates.
position of Tk 661.35 million. The overall exposure does
Equity Risk
Equity risk is defined as losses due to changes in market
price of equity held. To measure and identify the risk, mark
to market valuations of the share investment portfolios
are done. Mark to market valuation is done against a
predetermined limit. At the time of investment, following
factors are taken into consideration:
of investment
of the securities
Liquidity of the securities
Reliability of earnings
Capital appreciation
Risk factors
Implication of taxes
actions taken on losses from fraud and control

lapses;
Review of safety and control measures of
premises.
Risk control and measurement in PBL are as under:

Security
Fundamentals
Operational Risk Management

Operational risk is defined as the risk of loss resulting
from inadequate or failed internal processes, people and
systems, or from external events. Operational risks vary
in their components. Some are very high occurrence with
low value risk and some are low occurrence with high value
risks. Third consultative paper of Basel-II recommended
following event based classification of operational risks:
fraud
External fraud
Employment practices and workplace safety
Client, products and business practices
Damage to physical assets
Business disruption and system failure
Execution, delivery and process management
Internal
Based on the classification, following type of operational

risks can be identified:
Manuals and Standard Operating Procedures

are in place and implementation of those are
regularly monitored;
Regular review of system and network by
Management Committee (MANCOM) and
Management Reporting System Committee
(MRSC);
Internal Control and Compliance Division
undertakes periodical and special audit of
branches and departments at Head Office
for review of the operation and compliance of
statutory requirement. The Audit Committee of
the Board subsequently reviews the reports of
the Internal Control and Compliance Division;
Comprehensive and special audit of branches
and business units by Internal Audit & Inspection
Division, Internal Control and Compliance
Division;
Risk based audit by Internal Audit & Inspection
Division;
Segregation of duties and multi-tier approval
procedure;
Conduct IT Audit on regular basis;
Establishing a Data Center for backup of data
and information;
Regular testing of systems back-up procedure
and contingency plan.
Prevention of Money Laundering
In PBL, operational risks are identified and measured in

the following manner:
Risks are identified with reference to the relevant
policy manuals, processes, procedures and
practices;
Accounts are evaluated as per Departmental
Control function Check List (DCFCL)
Incident reporting and analysis of causes and
Money laundering risk is defined as the loss of reputation

and expenses incurred as penalty for being negligent
in prevention of money laundering. The Bangladesh
Bank Guidelines on Anti-Money Laundering contain the
following major issues which have been incorporated in
banks policy:
Duly filled in KYC (Know Your Customer) Form is
a must for account opening;
TP (Transaction Profile) in which every customer
must specify what will be the frequency and
amount of transactions;
There should be a monitoring function to monitor
unusual / suspicious transaction which needs to
be reported to the Bangladesh Bank;
Cash Transaction Report (CTR) is to be sent to
the Bangladesh Bank on every month for the
customers depositing or withdrawing cash above
Tk 0.70 million in any day in a bank branch;
Risk Management

Records should be maintained for 5 (five) years;

Appoint Compliance Officer in every branch and
Chief Compliance Officer at Head Office;
Train officials on anti-money laundering;
Customers should be classified on the basis of risk;
Customer Acceptance Policy should be prepared;
STR to be reported as and when detected.
All the above issues have been fully complied. For

mitigating the risks the bank has a designated Chief
Compliance Officer at Head Office and Compliance
Officers at branches, who independently review the
transactions of the accounts to verify suspicious
transactions. Manuals for prevention of money
laundering have been established and Transaction
Profile has been introduced. Training is continuously
given to all the category of officers and executives for
developing awareness and skill for identifying suspicious
activities. Suspicious transactions are reported to the
Bangladesh Bank.
The chapter on Corporate Governance in this Annual
Report contains details of the control measures at Head
Office and branch level.
All the above issues have been duly addressed. Activities

of Internal Control and Compliance Division during the
year 2012 include:

Internal Control and Compliance

Internal Control and Compliance is a management
process designed to achieve:
Effectiveness and efficiency of operations
Reliable financial reporting
Compliance with laws and regulations

Pillar-I and Pillar-II of BaselII also focused on operational

risk and supervisory review respectively attaching
considerable importance to internal control & compliance
and on supervision & monitoring. As per Para 1.5.2 of
Core Risk Guidelines of Bangladesh Bank on Internal
Control and Compliance, the MANCOM will review on
yearly basis the overall effectiveness of internal control
system and provide a certification on the effectiveness
of Internal Control Policy, Practice and Procedure. The
guideline contains the following major issues:
Audit Committee should be formed by every bank;
MANCOM (Management Committee) should be
formed by every bank and hold regular meeting.
Annual review by the MANCOM should be
carried out regarding effectiveness of internal
control system;
Policies and procedures should be determined
for every function of the bank;
Business strategy should be set by each bank;
Risk recognition, assessment, control activities
and segregation of duties, monitoring activities
and correcting deficiencies;

Management Reporting System;

Establishment of Compliance culture.
KYC formality completed for all legacy accounts

of the bank;
Declaration of Transaction Profile has been
obtained of all accounts;
Use of uniform Account Opening Form as
prescribed by Bangladesh Bank;
Reporting of CTR was regular.
Reporting of STR to Bangladesh Bank was made
correctly. To the best of our knowledge, there
was no issue on Money Laundering. However,
the bank paid Tk 0.20 million to the Bangladesh
Bank for the late submission of STR;
Training of 100 percent officers of the bank on
AML have been completed;
Solution of the problems / issues as and when
received from Anti Money Laundering Department
of the Bangladesh Bank.
Update the knowledge of banks officers on
Anti Money Laundering and Anti Terrorist
financing and Laws published, develop them
for keeping account opening records and attain
the Self Assessment Forms of each branch as
recommended by the Bangladesh Bank;
Compliance of the Bangladesh Banks
requirements time to time and attending the
meeting arranged by FATF of Anti Money
Laundering Department of the Bangladesh Bank;
Follow-up and monitoring of Audit Report (related
to Anti Money Laundering) as and when received
from banks Internal Audit Division and External
Auditors of the bank;
Conducting warm-up session round the year for
updating the knowledge of the new & amendment
of existing circulars on AML.
The chapter on Corporate Governance in this Annual

Report contains details of internal control and compliance
measures of the bank.
Islamic Banking Risk
Islamic banking is becoming a popular mode of banking
because of its Shariah complied principles. In many
countries, there are separate Islamic banking banks and
also banks which are operating under both conventional
and Islamic mode of banking. In addition to the credit risk,
market risk, liquidity risk and operational risk there are
other risks in Islamic banking operation.
Shariah Non-Compliance Risk arises from the
failure of the banks to comply with Shariah rules
and regulations. As more and more banks are
operating under both conventional and Islamic
banking, it is becoming increasingly important
scheduled banks. Basel Capital Accord-II in respect of
the sustainability of Islamic banking. Based on
of a bank more closely with the underlying risk a bank

undertakes through providing funded and non-funded
facilities / guarantees / commitments to the clients /
in favor of clients / counterparty. With a view to smooth
implementation of Basel-II Accord, the management of
PBL decided to conduct Credit Rating of our Corporate
Borrowers through External Credit Rating Assessment
Institutions (ECAIs).
to comply with Shariah rules and regulations for

historical reviews, the potential areas of Shariah
non-compliance is assessing potential profits that
cannot be recognized as eligible profits under
Shariah Principle.
Fiduciary risk is the risk that arises from banks

failure to perform in accordance with explicit
and
implicit
standards
applicable
to
their
fiduciary responsibilities. As a result of losses

in investments, banks may become insolvent
and therefore unable to (i) meet the demands of
current account holders for repayment of their

funds; and (ii) safeguard the interests of their
PLS (Profit Loss Sharing) deposit holders. Banks

may fail to act with due care when managing
investments resulting in the risk of possible

forgone profits to PLS deposit holders.
In order to reduce Shariah non-compliance risk, the
Muraqibs regularly conducted Shariah audit. Fiduciary

risk is controlled through banks risk management
process.
Information and Communication Technology Risk

We are living in an era of information and communication
technology and the banks have become more technology

driven these days. Use of computer, internet has
become a common practice in the banking industry.

There are certain risks involved in the use of information
capital measurement and capital standards aligns capital
Since inception, Risk Management Division (RMD) has

taken over the mentorship to rate its corporate exposures
through ECAIs. RMD has continued to ensure the
timely and proper completion of borrower rating through
guidance, series of meetings and written correspondences
with the allied stakeholders.
As a result of vigorous effort and continuous persuasion,
out of total 433 nos. eligible borrowers of PBL having
exposures of Tk 100 million and above, rating of 225
nos. borrowers (51.96 percent of eligible borrowers) has
been completed till December 31, 2012. Another 52 nos.
borrowers have already signed agreement with ECAIs. It
is expected that by the end of 2nd quarter of 2013, total
277 nos. eligible borrowers out of total 433 nos. borrowers
will be rated through ECAIs which will cover 63.97 percent
of the eligible borrowers.
The rating category of the 225 nos. borrowers of PBL is
as follows:
from malfunction of system, failure of network, lack of
Bangladesh
Bank Rating
Grade
hacking etc.
BB Grade 1
BB Grade 2
and communication technology. This risk may arise
knowledge about the use of technology, virus attack,

To manage IT related risk, PBL has adopted Core Banking
Software TEMENOS T24 for its Bank management.

PBL has also taken steps to secure data through Disaster
Recovery (DR) site. It has two DR sites located in Uttara

and Gulshan to make sure that the bank is operating
smoothly under unavoidable circumstances. PBL has

an IT audit team formed as per the Central Banks
guideline. The team is conducting IT Audit in each branch
on a periodic basis and providing suggestions to higher

management. IT Division is also managing IT related
training programs to make sure that employees are

aware of IT risk related issues. The chapter on Corporate
Governance in this Annual Report contains details of IT

audit.
Borrowers Rating
Borrower rating is the offshoot of banks capital adequacy
requirement under Basel-II framework applicable for
Equivalent
Rating of
CRISL
Equivalent
Rating of
CRAB
AAA
AAA
AA+, AA, AA1, AA2,
AAAA3
BB Grade 3 A+, A, A- A1, A2, A3
BBB+,
BBB1,
BB Grade 4
BBB, BBB-,
BBB2,
BB+, BB, BBB3, BB1,
BBBB2, BB3
BB Grade 5 B+, B, B- B1, B2, B3
Total
No. of
% of Total
Rated
rated
Customers
Customers
of PBL
05
2.22%
42
18.67%
77
99
34.22%
44.00%
02
225
0.89%
100%
Stress Testing
Stress Testing is a risk management technique used to
evaluate the potential effects of an institutions financial
condition of a specific event and/or movement in a set of
financial variables. It refers to the process to cover multiple
risk measures across categories and complements
traditional risk models. It is also an integral part of the
Capital Adequacy Framework. The traditional focus of
stress testing relates to exceptional but plausible events.
Stress testing for credit risk assesses the impact of
increase in the level of non-performing loans (NPLs) of
Risk Management
the banks. This involves several shocking events. Each
shocking event contains Minor, Moderate and Major
Levels of shock.
Performing loan directly downgraded to B/L- Sectoral
Concentration 1: It is a measure of the concentration risk
where the bank has the highest 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 PBL will be 12.65%, 12.48% and 12.31%
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 second highest investment. It
assumes that 3%, 9% and 15% of the performing loan will

be directly downgraded to B/L category in minor, moderate

Ratio (CAR) of PBL will be 12.64%, 12.46% and 12.28%
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 is assumed that top 3, 7 and

10 borrowers of the bank will default in minor, moderate
Ratio (CAR) of PBL will be 6.47%, 7.59% and 5.76% in
minor, moderate and major levels of shock respectively
when considering individual shock. PBL as a part of its

strategy is reducing the exposure of large loan borrower
and focusing on diversification of credit portfolio. However,

the bank is continuously monitoring the performance of
large loan borrowers. Besides, a good amount of security
coverage is also maintained against those large loans.
Negative shift in 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 PBL will be 12.77%, 12.41%
and 12.19% in minor, moderate and major levels of shock

respectively when considering individual shock.
Decrease in the Forced Sale Value (FSV) of the

collateral: It represents the banks 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 PBL will be 12.63%,
12.53% and 12.32% in minor, moderate and major levels
of shock respectively when considering individual shock.
Interest rate shock: It represents the 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 PBL will be
11.70%, 10.67% and 9.64% in minor, moderate and major
levels of shock respectively when considering individual
shock.
Foreign exchange shock: It represents the 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 PBL will be 12.71%, 12.70% and 12.69% in minor,
moderate and major levels of shock respectively when
considering individual shock.
Equity shock: It represents the banks condition 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 PBL will
be 12.67%, 12.60% and 12.48% in minor, moderate
and major levels of shock respectively when considering
individual shock.
When all the shocks are considered together, Capital
Adequacy Ratio (CAR) of PBL will be 10.60%, 6.74%
and 1.78% in minor, moderate and major levels of shock
respectively. So, the bank can absorb minor level of
shock only when all the shocks are considered together.
However, for absorbing other levels of shock which is very
unlikely in the industry, the bank may require additional
capital and reserve.
20,000,088
5,927,202
5,033,160
132,751,323
3,376,263
2,641,429
13,677,828,714
JPY
CHF
CAD
AUD
SGD
SAR
SEK
Total
* Core Capital is Tk
83,157,945
20,510,699,935
13,016,480,060
104,378,880
81,964
19,477,001
231,644,468
241,936,083
EUR
GBP
12,660,897,747
Liabilities In FCY
Assets In FCY
661,348,654
2,641,429
3,376,263
28,372,443
5,033,160
(81,964)
5,927,202
20,000,088
63,680,944
10,291,615
522,107,474
3=1-2
Net Short Term

Position
Short Term Foreign Currency Holdings
13,183,005,221
USD
Currency
as on 31.12.2012
Banks Exposure to Foreign Exchange Risk
Liabilities In
FCY
6=4-5
Long Term Net

Position
661,348,654
2,641,429
3,376,263
28,372,443
5,033,160
(81,964)
5,927,202
20,000,088
63,680,944
10,291,615
522,107,474
7=3+6
Overall Net
Position
3.22%
Overall Net
Position /
Core Capital
1.00%
4,933,932.35
27,343,884.83
2.05%
10,063,866,116.05
8,062,882,439.49
2,000,983,676.56
11,089,464,401.35
Over 9 month to upto 1 year
in Bangladesh Taka
In Bangladesh Taka
1.00%
19,393,248.49
22,409,952.47
1.68%
Over 6 month to up to 9
month
15,565,537,762.57
7,700,498,098.55
7,865,039,664.02
9,088,480,724.79
Long Term Foreign Currency Holdings
1.00%
9,382,171.15
3,016,703.99
0.23%
Over 3 month to up to 6
month
21,149,560,462.16
17,344,568,828.28
3,804,991,633.88
1,223,441,060.77
Assets In FCY
1.00%
(6,365,467.17)
(6,365,467.17)
-0.48%
76,121,173,045.52
78,702,723,618.63
(2,581,550,573.11)
(2,581,550,573.11)
Rate Sensitive Assets

Rate Sensitive Liabilities
Gap
Cummulative Gap
Adjusted Interest Rate Change (IRC)

Quarterly earning impact (Cum. Gap * IRC)
Accumulated earning impact to date
Earning Impact / Avg. Quarterly Net Profit
1- 90 days
Particulars
for 1 percent change in the market rate of interest

as on 31.12.2012
Interest Rate Risk Analysis
Report on Risk Management by

Chief Risk Officer
It has been a successful year for PBL in terms of portfolio
growth, improving the quality of the portfolio, meeting the
Minimum Capital Requirement (MCR) under Basel-II and
in many other ways. PBL is committed to its stakeholders
to attain a sustainable business growth commensurate
with its strategy through implementation of a robust
Enterprise Risk Management (ERM) framework within the
organization. The main objective of ERM is to inculcate
the risk culture at every part of its operation so that risk
elements (whether credit, market, operation or other
pillar-II risk elements) remain within its acceptable level
and the bank is not exposed to any threats for exceeding
its tolerance parameters.
As per the guidelines of the Bangladesh Bank, PBL considers
risks in two broad categories, one is Pillar-I risk and another
is Pillar-II risk. Under Pillar-I, credit, market and operational
risks are being considered, while other risks, which are not
coved in Pillar-I are covered under Pillar-II.
1. Pillar 1 Risk Management

1.1 Credit Risk
Credit risk arises from the potential that an obligor is either
unwilling to perform or its ability to perform such obligation
is impaired resulting in economic loss to the bank. As per
the Bangladesh Bank guideline, PBL already separated
credit marketing, credit risk management, and credit
administration function. The credit risk in PBL is guided by
Credit Risk Management Policy which was duly approved
by the Board of Directors of the bank.
The following systems and procedures are being followed
in PBL to manage the credit risk:
a. Credit Origination: Before allowing a credit facility, the
Bank makes an assessment of risk profile of customer/
transaction.
b. Limit Setting: Establishing exposure limits for single
obligor and group of connected obligors is an important
element for Credit Risk Management. PBL sets credit limit
according to the merit of the transaction.
c. Credit Administration: Ongoing administration of the
credit portfolio is an essential part of the credit process. PBL
has already established a centralized credit administration
department and a process manual. Credit administration
function is basically a back office activity that supports and
controls extension and maintenance of credit.
d. Measuring Credit Risk through External Credit
Rating Institutions (ECAIs): PBL through its Risk
Management Division is putting its best efforts to get its
corporate borrowers rated by ECAIs. PBL rated 51.96
percent of the total eligible borrowers through agreement

signed with ECAIs.
e. Credit Risk Monitoring and Control: Credit risk
monitoring refers to continuous monitoring of individual
credits inclusive of off-balance sheet exposures to
obligors as well as overall credit portfolio of the bank. PBL
has a dedicated team to perform the function of credit risk
monitoring and control.
f. Delegation of Authority: The Board of Directors is the
ultimate authority for making any credit decision under the
guidance of regulatory directives as well as internal policy
manuals. PBL has established responsibility for credit
sanctions and delegated authority to approve credits or
changes in credit terms.
g. Managing Problem Credits: PBL has established
and enforced internal controls and other practices to
ensure that exceptions to policies, procedures and limits
are reported in a timely manner to the appropriate level
of management. The bank has a system in place for
managing problem credits and various other workout
situations. All NPLs are assigned to Account Manager(s)
within the Recovery Department, who is responsible for
coordinating and administering the action plan/recovery of
the account, and serves as the primary customer contact
after the account is downgraded to substandard.
1.2 Market Risk:
1.2.1 Definition: Market risk is defined as a current
or prospective threat to the banks earnings due to
movements in market prices, i.e., prices of securities,
commodities, interest rates and foreign exchange rates.
Market risk exposure of PBL is explicit in portfolios of
securities/equities and instruments that are actively
traded. In addition, Treasury Division complies with
regulatory requirement to maintain CRR and SLR. PBL
also maintained exchange position (overbought/ oversold
position) of the bank, in line with the Bangladesh Bank
open position limit set for PBL.
1.2.2 Policies Guiding Market Risk: PBL has a separate
Asset Liability Management (ALM) policy, which acts as the
controlling point for any investment activities of the bank.
1.2.3 Segregation of Responsibilities: The Asset and
Liability Committee (ALCO) holds overall responsibility for
market risk and sets the limit for trading positions (FOREX
and local currency) and stop loss levels on product and the
level of experience of the dealers. Treasury division actively
manages market risk within the limits provided by ALCO.
1.2.3.1 Foreign Exchange Desk: PBL is one of the leading
market makers in different foreign exchange products
mainly USD/BDT spot, forward, swaps, transactions in
inter-bank market and cross currency dealing (mostly
customer driven transactions) with foreign correspondent
abroad. Treasury has also been funding its surplus funds

to PBLs overseas finance companies especially for bill
discounting purpose and off-shore banking units for their
smooth business operations including business under
UPAS LC and re-financing against deferred LCs.
1.2.3.2 Money Market Desk: The money market desk
regularly participate in the inter-bank market of the
country and exercise all types of existing money market
products like call money, term placement, Repo, Special
Repo, ALS and Reverse-Repo with the Bangladesh Bank
and inter-bank etc mostly on overnight basis.
1.2.3.3 Asset Liability Management Desk: Treasury is
the driving force of ALCO. It executes the strategies of
the Asset Liability Management Committee for effective
management and monitoring of various balance sheet
gaps and risk limits set by the regulator and CRO. It takes
various decisions regarding interest rate structure of
deposits, Loan Pricing, credit deposits ratio, contingency
funding plan, stress testing, liquidity coverage ratio (LCR),
transfer pricing mechanism for internal funding and
investments in government securities including corporate
bonds by evaluating the market trend and scenario.
1.2.3.4 Primary Dealer (PD) and Fixed Income Desk:
The Bangladesh Bank devolved Government Treasury
Bills/ Bonds to the primary dealers for development of the
secondary market. But the demand for Treasury Bonds in
capital market was almost non-vibrant due to unattractive
yields. In spite of the difficulties, PBL has continuously
been trying to develop the bond market through trading of
Treasury Bills and Bonds in the secondary market and also
providing financial advisory services to the prospective
customers of Government Securities for bond market
development. Primary dealer desk is also participating in
primary auctions as the agent of the corporate clients. PBL
actively participated in developing the Primary Dealers
Association which helped to improve the Bond Market.
1.3 Operational Risk
1.3.1 Definition: Operational risk refers to the risk of loss
because of inadequate or failed internal processes, staff
and systems or external events. It also includes legal risk.
PBL has emphasized on risk identification and assessment
that ensure that all key risks are effectively highlighted for
Banks transparency and management. This enables the
bank to focus on fewer but more fundamental risks.
1.3.2
Identification
and
Measurement:
The
measurement and control framework comprises of
the following qualitative elements:
Monitoring of key risks. This is an ongoing process
that ensures that an unfavorable development in such
risks is consistently highlighted on a group basis.
Risk mitigation strategies and implementation process
that ensures key risks are controlled and establish
transparency in these strategies and processes.
Follow up on loss data and events.
1.3.3 Control and Mitigation: At present, operational

risk is largely managed through internal control and audit
system. Our bank has put in place the following measures
to control/ mitigate operational risk:

System of delegated authority covering credit

and expenditure.
Book of instructions and issuance of instructions
through circulars from time to time.
Preventive vigilance
Continuous training process
Risk Based Internal Audit
Compliance Policy
2. Pillar 2 & All Other Risks

PBL is conducting stress testing on its financials on
a quarterly basis and reporting the outcomes to the
Bangladesh Bank, as a part of Pillar-2 risk management
tool. In addition, the Bangladesh Bank also released
guideline of Supervisory Review Evaluation Process
(SREP), which states that every bank has to establish
a Supervisory Review Process (SRP) team, a process
document called Internal Capital Adequacy Assessment
Program (ICAAP) for assessing the overall risk profile and
a strategy for maintaining adequate capital. Accordingly,
PBL has already established a SRP team and also
submitted the report on additional capital requirement
under Pillar-2 to the Bangladesh Bank.
PBL assessed its additional capital requirement under
Pillar-2 taking into consideration risks that are not covered
under Pillar-1. According to the model, such risks include
residual risk, credit concentration risk, liquidity risk, interest
rate risk in banking book, settlement risk, reputation risk,
strategic risk and other material risks.
3. Compliance Status of MCR in 2012
In compliance of MCR under Pillar-1 risk elements, PBL
was well ahead of minimum requirement in all four quarters
of 2012. On consolidated basis, CAR was 12.72 percent at
the end of March, 12.06 percent at the end of June, 12.31
percent at the end of September and 12.64 percent at the
end of December.
4. Initiatives of Risk Management in 2013
Risk Management Division (RMD) has started working
to implement the process of embedding Enterprise Risk
Management as a part of long term visionary plan. The
major challenge would be to prepare the ground for moving
towards Internal Rating Based (IRB) approach for credit risk
and the Standardized Approach for operational risk.

Deputy Managing Director & CRO
Prime Bank Limited
Market Discipline
Disclosures on Risk Based Capital (Basel-II)
1. Scope of Application
Qualitative a)
disclosure
b)
The name of the top Prime Bank Limited

corporate entity in the group
to which this guidelines
applies.
An outline of differences in
the basis of consolidation for
accounting and regulatory
purposes, with a brief
description of the entities
within the group (a) that
are fully consolidated; (b)
that are given a deduction
treatment; and (c) that are
neither consolidated nor
deducted (e.g. where the
investment is risk-weighted).
Prime Bank Limited has 5 (Five) subsidiaries viz. (i) Prime Bank
Investment limited, (ii) Prime Bank Securities Limited, (iii) Prime
Exchange Co. Pte. Limited, Singapore, (iv) PBL Exchange (UK)
Limited and (v) PBL Finance (Hong Kong) Limited.
A brief description of the Bank and its subsidiaries are given
below:
Prime Bank Limited
Prime Bank Limited (PBL) was incorporated as a public limited

company in Bangladesh under Companies Act, 1994. It commenced
its banking business with one branch from April 17, 1995 under the
license issued by Bangladesh Bank. Presently the Bank has 113
(one hundred thirteen) branches, 17 (seventeen) SME Branches /
Centre all over Bangladesh, and 2 (two) booths located at Dhaka
Club, Dhaka and at Chittagong Port, Chittagong. The Bank has 3
(three) Off-shore Banking Units (OBU) operating at Dhaka EPZ,
Chittagong EPZ and Adamjee EPZ. The bank went for Initial Public
Offering in 1999 and its shares are listed with Dhaka Stock Exchange
Limited and Chittagong Stock Exchange Limited as a publicly traded
company for its general class of shares.
The principal activities of the Bank are to provide all kinds of
commercial banking services to its customers through its branches.
Subsidiaries of PBL:
i) Prime Exchange Co. Pte. Limited, Singapore:
Prime Exchange Co. Pte. Ltd., Singapore a fully owned subsidiary
company of Prime Bank Limited was incorporated in Singapore
on January 06, 2006 and commenced its remittance business
from July 08, 2006. The principal activities of the company are to
carry on the remittance business and to undertake and participate
in transactions, activities and operations commonly carried on or
undertaken by remittance and exchange house.
ii) Prime Bank Investment Limited:
Prime Bank Investment Limited (PBIL) is a subsidiary company

of Prime Bank Limited incorporated as a public limited company
on April 27, 2010 with the registrar of Joint Stock Companies,
vide certificate of incorporation no.C-84266/2 dated 28 April 2010
which has commenced its business on the same date.
The main objectives of the company are to carry out the business
of full-fledged merchant banking activities like issue management,
portfolio management, underwriting, corporate advisory services etc.
iii) PBL Exchange (UK) Limited:
PBL Exchange (UK) Limited was incorporated as a private limited
company with Companies House of England and Wales on
November 19, 2009 and commenced its operation on 02 August
2010 with three Branches located at Brick Lane of London,
Coventry Road of Birmingham and North Pldham of Manchester.
The company is a fully owned subsidiary of Prime Bank Limited.
iv) Prime Bank Securities Limited:

Prime Bank Securities Limited was incorporated on April 29, 2010
as a private limited company under the Companies Act 1994. The
main objective of the company is to carry on business of stock
brokers / dealers in relation to shares and securities dealings and
other services as mentioned in the Memorandum and Articles
of Association of the Company. The company commenced its
operation from May 2011.
v) PBL Finance (Hong Kong) Limited:
PBL Finance (Hong Kong) Limited, a fully owned subsidiary of Prime
Bank Limited. The company was incorporated with Companies
Registries of Hong Kong. Prime Bank Limited obtained approval from
Bangladesh Bank for opening of a fully owned finance company in
Hong Kong. This is the third fully owned overseas company of Prime
Bank Limited. PBL Finance (Hong Kong) Limited obtained Money
Lending Licenses (307/2011) issued by Honorable Court of Hong
Kong on 28th July 2011. It has commenced its operation in August
2011 with one branch located at 608, 6/F, Admiralty Centre, Tower-2,
18 Harcourt Road, Hong Kong.
c)
Quantitative d)
disclosure
Any restrictions, or other

major
impediments,
on
transfer of funds or regulatory
capital within the group.
Not applicable
The aggregate amount of

capital deficiencies in all
subsidiaries not included in
the consolidation that are
deducted and the name(s)
of such subsidiaries.
Not applicable
2. Capital Structure
Qualitative
disclosure
Quantitative
disclosure
a)
b)
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.
As per the guidelines of Bangladesh Bank, Tier-1 Capital of

PBL consists of (i) Fully Paid-up Capital, (ii) Non-repayable
Share Premium Account, (iii) Statutory Reserve, (iv) Retained
Earnings and (v) Minority Interest in Subsidiaries.
Tier-2 Capital consists of (i) General Provision against
unclassified Loans/Investments, Off-balance sheet exposure
& Off-shore banking Units), 50% of Asset revaluation reserve,
50% of Revaluation gain/loss on investment (HFT), 10% of
Revaluation reserve for equity instruments, PBL unsecured
nonconvertible subordinated bond as approved by Bangladesh
Bank and Exchange equalization fund etc.
The amount of Tier-1 capital with separate disclosure of:

I.
II.
Fully Paid up capital

Non repayable share premium account
Solo
Consolidated
Taka in Million
9,357.71
9,357.71
2,241.23
2,241.23
c)
III.
Statutory reserve
IV.
General reserve
V.
Retained earnings
VI. Minority interest in subsidiaries
VII. Non-cumulative irredeemable preference shares
VIII. Dividend equalization account
Sub-Total (A)
The total amount of Tier 2 and Tier 3 capital (B)
6,839.53
2,072.23
20,510.70
5,240.80
6,839.53
2,225.19
0.00
20,663.66
5,252.00
d)
e)
Other deductions from capital

Total eligible capital (A+B)
25,751.50
25,915.60
Market Disipline disclosures on Risk Based Capital (Basel-II)

3. Capital Adequacy:
Qualitative
disclosure
a)
A summary discussion of the

banks approach to assessing
the adequacy of its capital
to support current and future
activities.
The Bank has adopted Standardized Approach (SA) for

computation of capital charge for credit 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 the Bangladesh Bank.
The Bank has maintained capital adequacy ratio on the basis of
Consolidated and Solo are 12.64% & 12.73% respectively
as against the minimum regulatory requirement of 10%. Tier-I
capital adequacy ratio for Consolidated is 10.08% as well as
Solo is 10.14% against the minimum regulatory requirement
of 5%. The Banks policy is to manage and maintain its capital
with the objective of maintaining strong capital ratio and high
rating. The Bank maintains capital levels that are sufficient
to absorb all material risks. The Bank also ensures that the
capital levels comply with regulatory requirements and satisfy
the external rating agencies and other stakeholders including
depositors. The whole objective of the capital management
process in the Bank is to ensure that the Bank remains
adequately capitalized at all times.
Quantitative
disclosure
Particulars
b)
c)
d)
e)
Capital requirement for credit risk
Capital requirement for market risk

Capital requirement for operational risk
Total and Tier 1 capital ratio:
For the consolidated group; and
For stand alone
Minimum capital requirement
Total Risk Weighted Assets (RWA)

Total and Tier-1 Capital Ratio:
Total CAR
Solo
Consolidated
Taka in Million
18,080.62
18,011.38
79.65%
79.73%
-
335.85
1,817.50
20,234.00
561.91
1,936.98
20,510.30
202,339.80
205,102.70
12.73%
12.64%
Tier-1 CAR
10.14%
10.08%
Tier-2 CAR
2.59%
2.56%
4. Credit Risk:
Qualitative
disclosure
The general qualitative disclosure requirement with respect to credit

risk, including:
a)
i) Definitions of past With a view to strengthening credit discipline and bring classification
due and impaired (for and provisioning regulation in line with international standard, a
accounting purposes);
phasewise program for classification and provisioning was undertaken
by the Bank as per Bangladesh Bank circulars issued from time to
time. In this regard, all the loans and advances are grouped into four
categories for the purpose of classification, namely (i) Continuous
Loan, (ii) Demand Loan, (iii) Fixed Term Loan and (iv) Short-term
Agricultural and Micro Credit. They are classified as follow:
Continuous & Demand Loan are classified as:
Sub-standard- if it is past due/overdue for 03(three) months or
beyond but less than 06 (six) months;
Doubtful- if it is past due/overdue for 06 (six) months or beyond
but less than 09 (nine) months;
Bad/Loss- if it is past due/overdue for 09 (nine) months or beyond.
In case of any installment(s) or part of installment(s) of a Fixed Term

Loan amounting upto Tk 1.00 million is not repaid within the due date,
the amount of unpaid installment(s) are treated as past due or overdue
installment. Such types of Fixed Term Loans are classified as under:
Sub-standard- if the amount of past due installment is equal
to or more than the amount of installment(s) due within 06 (six)
months, the entire loans are classified as Sub-standard.
Doubtful- if the amount of past due installment is equal to or
more than the amount of installment(s) due within 09 (nine)
months, the entire loans are classified as Doubtful.
Bad/Loss- if the amount of past due installment is equal to or
more than the amount of installment(s) due within 12(twelve)
months, the entire loans are classified as Bad/Loss.
In case of any installment(s) or part of installment(s) of a Fixed Term
Loan amounting more than Tk 1.00 million is not repaid within the due
date, the amount of unpaid installment(s) are treated as past due or
overdue installment. Such types of Fixed Term Loans are classified
as under:
Sub Sub-standard- if the amount of past due installment is equal
to or more than the amount of installment(s) due within 03 (three)
months, the entire loans are classified as Sub-standard.
Doubtful- if the amount of past due installment is equal to or more
than the amount of installment(s) due within 06 (six) months, the
entire loans are classified as Doubtful.
Bad/Loss- if the amount of past due installment is equal to or
more than the amount of installment(s) due within 09 (nine)
months, the entire loans are classified as Bad/Loss.
Short-term Agricultural and Micro Credit will be considered irregular if
it is not repaid within the due date as stipulated in the loans agreement
are classified as under:
Sub-standard- if the irregular status continues after a period of
12 (twelve) months, the credits are classified as Sub-standard.
Doubtful- if the irregular status continue after a period of 36

(thirty six) months, the credits are classified as Doubtful.
Bad/Loss- if the irregular status continue after a period of 60

(sixty) months, the credits are classified as Bad/Loss.
A Continuous loan, Demand loan or a Term Loan which remained
overdue for a period of 02 (two) months or more, are treated as
Special Mention Account (SMA).
ii)
Description
of
approaches
followed
for specific and general
allowances
and
statistical methods;
The Bank is required to maintain the following general and specific

provision in respect of classified and unclassified loans and advances
/ investments on the basis of Bangladesh Bank guidelines issued
from time to time:
Particulars
Rate
General provision on unclassified Small and Medium
0.25%
Enterprise (SME) financing.
General provision on unclassified loans and advances/ nvestments 1%
other than Consumer Financing, Loans to Brokerage House, Merchant
Banks, Stock Dealers etc., SMA as well as SME Financing).

Particulars
General provision on interest receivable on loans /
investments.
General provision on off-balance sheet exposures (Provision
has been made on the total exposure and amount of cash
margin or value of eligible collateral were not deducted while
computing off-balance sheet exposure).
Rate
1%
1%
General provision on unclassified loans and advances/

investments for housing finance, loans for professionals to
set-up business under consumer financing scheme.
2%
General provision on the unclassified loans to Brokerage

House, Merchant Banks, Stock Dealers, etc.
2%
General provision on unclassified amount for Consumer

Financing.
5%
General provision on outstanding amount for Special Mention

Account (SMA).
5%
Specific provision on Sub-Standard loans and advances / 20%

investments.
Specific provision on Doubtful loans and advances / 50%
investments.
Specific provision on bad / loss loans and advances / investments. 100%
Quantitative
disclosure
b)
Total gross credit risk Total gross credit risk exposures broken down by major types of credit
exposures broken down exposure of the Bank:
by major types of credit
Particulars
Taka in Million
exposure.
Secured Overdraft/Quard Against TDR
38,485.35
Cash Credit/Mudaraba
22,797.52
Loan (General)
30,396.29
House Building Loan
3,615.48
Loan Against Trust Receipts (LTR)
17,724.67
Payment Against Documents (PAD)
679.99
Retail Loan
11,303.24
Lease Finance/Izara
8,186.01
Credit Card
915.41
SME Loan
988.95
Hire Purchase
8,118.56
Other Loans & Advances
10,229.25
Bill purchased/discounted-Inland
5,499.98
Bill purchased/discounted-Foreign
1,949.16
Total
160,889.85
c)
Geographical distribution Geographical distribution of exposures, broken down in significant

of exposures, broken areas by major types of credit exposure of the Bank:
down in significant areas
Particulars
Taka in Million
Urban:
exposure.
Dhaka Zone
Chittagong Zone
Khulna Zone
Rajshahi Zone
Barishal Zone
Sylhet Zone
Rangpur Zone
Sub-Total
Rural:
Dhaka Zone
Chittagong Zone
Khulna Zone
Rajshahi Zone
Sylhet Zone
Sub-Total
Grand Total (Urban + Rural)
117,138.25
25,060.28
5,214.20
4,510.33
150.52
1,993.48
1,020.74
155,087.80
3,866.63
1,014.28
121.04
487.63
312.47
5,802.05
160,889.85
d)
Industry or counterparty
type
distribution
of
exposures, broken down
exposure
Industry or counterparty type distribution of exposures, broken down

by major types of credit exposure of the Bank:
Particulars
Taka in Million
Commercial Lending
21,690.12
Export Financing
13,119.36
House Building Loan
3,615.48
Retail Loan
11,303.24
Small & Medium Enterprises (SME)
12,230.78
Special Program Loan
682.45
Staff Loan
11.20
Other Loans & Advances (SOD)
14,745.21
Loans, Advances & Lease/Investments to Managing
1,724.31
Director / CEO and other senior executives
Industrial Loans/Investments (Details are given below)
81,767.70
Total
160,889.85
Industrial Loans/Investments
Particulars
Taka in Million
Agriculture
2,274.81
Textile Industries
26,070.84
Food and allied industries
5,340.97
Pharmaceutical Industries
1,574.64
Leather , Chemical, Cosmetics, etc.
1,170.21
Tobacco Industries
204.57
Cement and Ceramic Industries
5,113.19
Service Industries
5,958.98
Transport & Communication Industries
9,325.67
Other Industries including bills purchased and discounted
24,733.82
Total
e)
81,767.70
Residual
contractual Residual contractual maturity break down of the whole portfolios,
maturity
breakdown broken down by major types of credit exposure of the Bank:
of the whole portfolio,
Particulars
Taka in Million
broken down by major
Repayable
on
Demand
types of credit exposure.
Up to 1 month
Over 1 month but not more than 3 months
Over 3 months but not more than 1 year
Over 1 year but not more than 5 years
Over 5 years
Total
f)
36,933.56
34,024.06
44,801.02
42,229.23
2,901.98
160,889.85
By major industry or counterparty type:

i) Amount of impaired The amount of classified loans and advances/investments of the
loans and if available, Bank are given below as per Bangladesh Bank guidelines.
past due loans, provided
Particulars
Taka in Million
separately;
Continuous Loans & Advances
Demand Loans & Advances

Term Loans & Advances
Short Term Agro Credit and Micro Credit
Total
499.46
2,137.72
3,528.87
2.45
6,168.50
ii) Specific and general Specific and general provisions were made on the amount of classified
provisions; and
and unclassified loans and advances/investments, off-balance sheet
exposures and off-shore banking units, interest on receivable,
diminution in value of investment and other assets-suspense of the
Bank according to the Bangladesh Bank guidelines.
Particulars
Taka in Million
Provision on classified loans and advances/investments
1,949.08
Provision on unclassified loans and advances/investments
1,964.67
Provision on Off-balance sheet exposures
1,080.00
Provision for Off-shore Banking Units
60.50
Provision for interest receivable on loans & advances/investments
9.52
Provision for other assets
247.11
Provision for diminution in value of investments
43.80
Total
5,354.68

iii) Charges for specific During the year the specific and general provisions were made on
allowances and charge- the amount of classified and unclassified loans and advances/
offs during the period.
investments, off-balance sheet exposure, off-shore banking units,
interest on receivable, diminution in value of investment and other
assets-suspense of the Bank as per Bangladesh Bank guidelines.
Particulars
Taka in Million
Provision on classified loans and advances/investments
1,490.00
Provision on unclassified loans and advances/investments
240.00
Provision on Off-balance sheet exposures
140.00
Provision for interest receivable on loans & advances/investments
9.52
1,292.42
43.80
Total
3,215.74
g)
Gross Non Performing Assets (NPAs).

Non Performing Assets (NPAs) to Outstanding loans and advances.
Movement
Performing
(NPAs).
of
Particulars
Non Opening balance
Assets Addition/adjustment during the year
Closing balance
Particulars
Movement of specific Opening balance
provisions for NPAs.
Provisions made during the period
Write-off
Write-back of excess provisions
Closing Balance
Taka in Million
1,908.25
4,260.25
6,168.50
Taka in Million
778.23
1,490.00
(404.20)
85.05
1,949.08
5. Equities: Disclosures for Banking Book Positions

Qualitative
disclosure
a)
The general qualitative disclosure requirement with respect to equity risk, including:
Differentiation between holdings
on which capital gains are expected
and those taken under other
objectives including for relationship
and strategic reasons; and
Investment in equity securities are broadly categorized

into two parts:
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 primary aim is to investment in these equity securities

for the purpose of capital gain by selling them in future or
held for dividend income. Dividends received from these
equity securities are accounted for as and when received.
Both Quoted and Un-Quoted equity securities are valued
at cost and necessary provisions are maintained if the
prices fall below the cost price.
i) Quoted Securities (Common or Preference Shares &

Mutual Fund) that are traded in the secondary market
(Trading Book Assets).
ii) Unquoted securities are categorized as banking book

equity exposures which are further sub-divided into two
groups: unquoted securities which are invested without
any expectation that these will be quoted in near future i.e.
held to maturity (HTM), and securities those are acquired
under private placement or IPO and are going to be
traded in the secondary market after completing required
formalities. Unquoted securities are valued at cost.
As per to Bangladesh Bank guidelines, the HFT equity

securities are revalued once in each week using marking
to market concept and HTM equity securities are amortized
once a year according to Bangladesh Bank guideline.
The HTM equity securities are also revalued if any, are
reclassified to HFT category with the approval of Board
of Directors.
Solo
Qualitative
disclosure
Consolidated
Taka in Million
b)
Value disclosed in the balance sheet of

investments, as well as the fair value of those
investments; for quoted securities, a comparison
to publicly quoted share values where the share
price is materially different from fair value.
c)
The cumulative realized gains (losses) arising

from sales and liquidations in the reporting period.
d)
Total unrealized gains (losses)
e)
At cost
At market
value
294.30
250.50
At cost
At market
value
1,770.90
1,380.80
11.24
25.28
(43.80)
(390.10)
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 banks
methodology, as well as the aggregate amounts and the type of equity investments subject to
any supervisory provisions regarding regulatory capital requirements (10% on market value).
Specific Market Risk
25.05
138.08
General Market Risk
25.05
138.08
6. Interest Rate Risk in the Banking Book (IRRBB)

Qualitative
disclosure
a)
The general qualitative disclosure

requirement including the nature
of IRRBB and key assumptions,
including assumptions regarding
loan prepayments and behavior
of non-maturity deposits, and
frequency of IRRBB measurement.
Interest rate risk is the risk where changes in market

interest rates might adversely affect a bank's financial
condition. Changes in interest rates affect both the current
earnings (earnings perspective) as well as the net worth
of the bank (economic value perspective). Re-pricing risk
is often the most apparent source of interest rate risk for
a bank and is often gauged by comparing the volume of a
banks assets that mature or re-price within a given time
period with the volume of liabilities that do so.
The short term impact of changes in interest rates is on the
banks Net Interest Income (NII). In a longer term, changes
in interest rates impact the cash flows on the assets, liabilities
and off-balance sheet items, giving rise to a risk to the net
worth of the bank arising out of all re-pricing mismatches and
other interest rate sensitive position.
Maturity grouping of rate sensitive assets and liabilities
of the bank (see table on Interest Rate Risk Analysis)
shows moderate negative gap in the first quarter and
moderate positive gap in the rest three quarters. If
market rates shift upward by 1 percent the bank will
enjoy a positive earning to the tune of Tk 27.34 million
during 1 year period and vice versa. The impact is very
insignificant compared to total revenue of the bank and
also within the acceptable limit as stipulated by the
Bangladesh Bank. The statement also shows that there
will be 2.05 percent impact on quarterly operating profit
which is also within the stipulated limit of 10 percent.
Interest Rate Risk Analysis (for 1% change in the market rate of interest)
Quantitative b)
disclosure
The
increase
(decline) in earnings
or
economic
value (or relevant
measure
used
by
management)
for
upward
and
downward
rate
shocks
according
to
managements
method
for
measuring IRRBB,
broken
down
by currency (as
relevant).
Particulars
Rate Sensitive Assets

Rate Sensitive Liabilities
GAP
Cumulative GAP
Adjusted Interest Rate
Changes (IRC)
Quarterly earnings impact
(Cum. GAP * IRC)
Accumulated earning
impact to date
Earning impact/Avg.
quarterly net profit
1-90
days
76,121
78,703
(2,582)
(2,582)
1.00%
Over 3
Over 6
months
months
to upto 6
to upto 9
months
months
Taka in Million
21,150
15,566
17,345
7,701
3,805
7,865
1,223
9,088
1.00%
1.00%
Over 9
months
to upto 1
year
10,064
8,063
2,001
11,089
1.00%
(6,365)
9,382
19,393
4,934
(6,365)
3,017
22,410
27,344
(0.48%)
0.23%
1.68%
2.05%
7. Market Risk
Qualitative
disclosure
a)
i) Views of Board of
Directors (BOD) on
trading/ investment
activities.
Market risk is the possibility of losses of assets in balance sheet and offbalance sheet positions arising out of volatility in market variables i.e.,
interest rate, exchange rate and price. Allocation of capital is required in
respect of the exposure to risks deriving from changes in interest rates
and equity prices in the banks trading book, in respect of exposure to risks
deriving from changes in foreign exchange rates and commodity price in the
overall banking activity. The total capital requirement for banks against their
market risk shall be the sum of capital charges against:
i. Interest rate risk
ii. Equity position risk
iii. Foreign exchange (including gold) position risk throughout the banks
balance sheet and
iv. Commodity risk.
ii) Methods used to Measurement Methodology:

measure Market risk. As banks in Bangladesh are now in a stage of developing risk management
models, Bangladesh Bank suggested the banks for using Standardized
Approach for credit risk capital requirement for banking book and Standardized
(rule based) Approach for market risk capital charge in their trading book.
Maturity Method has been prescribed by Bangladesh Bank in determining
capital against market risk. In the maturity method, long or short positions in
debt securities and other sources of interest rate exposures, including derivative
instruments, are slotted into a maturity ladder comprising 13 time-bands (or
15 time-bands in case of low coupon instruments). Fixed-rate instruments are
allocated according to the residual term to maturity and floating-rate instruments
according to the residual term to the next repricing date.
In Standardized (rule based) Approach the capital requirement for various
market risks (interest rate risk, price, and foreign exchange risk) are
determined separately.
The total capital requirement in respect of market risk is the sum of capital
requirement calculated for each of these market risk sub-categories. e.g.:
a) Capital Charge for Interest Rate Risk = Capital Charge for Specific Risk
+ Capital Charge for General Market Risk;
b) Capital Charge for Equity Position Risk = Capital Charge for Specific Risk
+ Capital Charge for General Market Risk;
c) Capital Charge for Foreign Exchange Risk = Capital Charge for General
Market Risk;
d) Capital Charge for Commodity Position Risk = Capital charge for general
market risk.
iii)
Market
Risk Treasury Division manages the market risk and ALCO monitors the activities
Management system. of treasury Division in managing such risk.
iv)
Policies
and
processes
for
mitigating
market
risk.
To mitigate the several market risks the bank formed Asset Liability
Management Committee (ALCO) who monitors the Treasury Divisions
activities to minimize the market risk. ALCO is primarily responsible for
establishing the market risk management and asset liability management
of the Bank, procedures thereof, implementing core risk management
framework issued by the regulator, best risk management practices followed
by globally and ensuring that internal parameters, procedures, practices/
polices and risk management prudential limits are adhere to.
The Treasury Division are taking following measures to minimize the several
market risks:
i) Foreign exchange risk management: it is the risk that the bank may
suffer losses as a result of adverse exchange rate movement during a period
in which it has an open position in an individual foreign currency. This risk
measured and monitored by the Treasury Division. To evaluate the extent of
foreign exchange risk, a liquidity Gap report prepare for each currency.
ii) Equity Risk: Equity risk is defined as losses due to changes in market price
of the equity held. To measure and identify the risk, mark to market valuation
to the share investment portfolios are done. Mark to market valuation is done
against a predetermined limit. At the time of investment, following factors are
taken into consideration:
a)
b)
c)
d)
e)
f)
g)
Quantitative
disclosure
Security of Investment
Fundamentals of securities
Liquidity of securities
Reliability of securities
Capital appreciation
Risk factors and
Implication of taxes etc.
The capital requirements for:

b)
Interest rate risk

Equity position risk
Foreign exchange risk and
Commodity risk
Total Capital Requirement
Solo
Consolidated
Taka in Million
219.60
219.61
50.10
276.20
66.15
66.10
335.85
561.91
8. Operational Risk
Qualitative
disclosure
a) i) Views of BOD on Operational risk is defined as the risk of loss resulting from inadequate or failed
system to reduce internal processes, people and systems or from external events. This definition
Operational Risk includes legal risk but excludes strategic and reputation risk. It is inherent in every
business organization and covers a wide spectrum of issues. The Board of Director
(BOD) of the Bank and its Management firmly believe that this risk through a
control based environment in which processes see documented, authorization as
independent and transactions are reconciled and monitored. This is supported by
an independent program of periodic reviews undertaken by internal audit, and by
monitoring external operational risk events, which ensure that the group stays in line
which industry best practice and takes account or lessons learned from publicized
operational failures within the financial services industry.
The BOD has also modified its operational risk management process by issuing
a high level standard like SOP, supplemented by more detailed formal guidance.
This explains how the bank manages operational risk by identifying, assessing,
monitoring, controlling and mitigating the risk, rectifying operational risk events,
and implementing any additional procedures required for compliance with local
regulatory requirements.
The Bank maintains and tests contingency facilities to support operations in the event
of disasters. Additional reviews and tests are conducted in the event that any branch of
the bank is affected by a business disruption event, to incorporate lessons learned in
the operational recovery from those circumstances. Plans have been prepared for the
continued operation of the banks business, with reduced staffing levels.

ii) Performance
gap
of
executives and
staffs.
Human Resources
Organizations need to effectively manage their human resources to get the
maximum contribution from their employees. PBL always focuses on helping its
people to grow, enabling individuals to make a difference and win their goals.
HR Division of PBL always strives to ensure a great place to work by creating an
attractive, inclusive and safe environment that rewards success and encourages
employees to take control of their personal development.
At the core of the HR strategy is managing an organizational culture where
employees enjoy working with pride and are strongly motivated to gain and
maintain professional excellence to convert the human resource into human
capital. Ensuring such things in the bank is a key driver of productivity and
performance, which creates the foundation of banks performance culture. HR
Division persuades and focuses on the behaviors that bring out the very best
from every employee, assessing their performance not just on results but on
how those results were achieved. To further embed these behaviors PBL has a
remuneration program in place, carefully designed to encourage its employees to
live its values every day. The bank has always taken a view that its remuneration
policies should support and drive its business strategy and reinforce its values.
PBL believes these are sound and aligned to external best practice standards
with risk-based and robust governance structures. Banks annual performance
bonuses are discretionary and are delivered in a combination of cash and deferred
shares. They are set with regard to an assessment of risk and other factors such
as achievement of our management agenda, risk management and economic
backdrop, as well as profit. PBL accentuates on shared working, creativity and
innovation among its employees.
PBLs brand pledges, a bank with a difference, sets out its deep and lasting commitment
to people, to the communities in which we live and work, and to building a sustainable
and responsible business in the long run in a unique way. And it is this commitment
that not only sets us apart as a bank but also as an employer.
By developing strengths of the human capital, valuing their unique perspectives
and enabling them to make a difference to our success, PBL will help them to fulfill
their latent talent. Getting the best from this opportunity will rely on them sharing
their commitment to delivering performance for its shareholders, building lasting
relationships while demonstrating a passion for helping it do better- for customers
and society.
With 2,544 people, operating through 130 branches, the bank prides itself on
being a truly peerless organization, combining the expertise and endeavor of
experienced and fresh talents.
HR Focus
PBLs distinctive customs and values contributes an enormous function in its
success, they are at the heart of who we are and what we strive for. PBL
distinguishes itself by being a strengths-based organization. The bank focuses on
understanding and leveraging its employees' strengths to ensure they are in the
true roles for them to truly excel.
PBL believes that the human capital is one of the crucial elements which influence
the rhythm, evolution, directions, quality and activity development in the bank.
The HR Division has been relentlessly working to help the bank in achieving its
goal of being the best commercial Bank in Bangladesh in terms of efficiency,
capital adequacy, asset quality, sound management and profitability having
strong liquidity. The Division endeavors for managing an organizational culture
where employees enjoy working with pride and are strongly motivated to gain and
maintain professional excellence. It also focuses on the respect for the employees,
the enforcement of moral and ethical principles.
HR Success:
Major achievement like:
Revision of car policy, gratuity policy, mobile phone policy and reward &
recognition policy
Manpower Planning
Organogram Restructuring
Mobilization of Human Capital:

The main ingredient for making profit in a Bank is human capital. For the evaluation
of banking performance one must take into consideration the human qualities and
professionalism proven by the Bank employees. The customer pays attention not
only to the Bank product or service quality, offered by the Bank, but also to the way
the Bank addresses itself to the client. The client must feel secured and trust the
Bank which he or she chose for his or her business. Also the work environment,
friendship and collaboration among the Bank employees reflect positively in the
bank-customer relationship.
In view of that, the HR Division of the Bank has always been striving to bring in
highly motivated, proactive, result oriented and above all committed workforce to
its winning team. It is to be noted that the tally of the branch number has reached
to 130 in 2012 from 119 of 2011. But for the last few years, both the recruitment
growth rate and turnover (exit) rate of the employees of the Bank has been
declining significantly, which is a robust indicator of the enhanced efficiency and
dedication of its human capital.
Training:
Human capital contributes to obtaining performance and developing Bank activities.
Beyond performance Banks must pay attention in training to Bankers of maximum
diplomacy and professionalism, and credibility for a more and more sophisticated
customers. Beyond performance, Banks must be interested in trainings that are
highly professional and diplomatic, and most of all credible for a more and more
sophisticated customers.
Prime Bank HR Training and Development Center is mere a Learning Center
rather than a Training Center and is output driven rather than input oriented. The
main purpose of the Human Resources Training and Development Center (HRTDC) is providing a progressive, flexible and balanced training service that seeks
to develop the skills and competencies necessary for the effective and efficient
performance of the human capital of the bank.
The HR-TDC of the bank arranged 19 professional training courses and 88
workshops and seminars during the year 2012 where 2,250 employees of different
grades participated.
In addition to HR-TDC nominated 28 employees to participate several training
programs or conferences abroad related to the burning issues of the age.
Moreover, 139 employees also participated several local training academies
like Bangladesh Bank Training Academy (BBTA), Bangladesh Institute of Bank
Management (BIBM) and others prominent training institutions.
Reward and Recognition
PBL has achieved an inimitable position in the Banking industry sailing on the
prolific patronization towards its employees. In this regard the Bank always tries
to sustain the inner drive of the outstanding performers through its well furnished
Reward and Recognition Policy to rejuvenate their consisting effort to result in
better outcomes. Throughout 2012 various campaigns were carried out with regular
business targets to revive the sound competitive mood among the employees to
boost up the business of the bank. Rewards and appreciations were sponsored
around the year to distinguish the committed effort of the employees and their
teams. Highlights of such initiatives are as following:
HR Future Plan
HR Division of the Bank has been going through continuous development with
a view to transforming its workforce into a dynamic and efficient one. Bringing a
timely restoration in its policies and organizational structures, it looks forward to
engage in the following courses of actions in the future:
Complying with the Centralization model blended with the new organogram;
Ensuring CSR (Corporate Social Responsibility) issues within the organization;
Continuous development of work environment and other issues regarding
employee welfare;
Ensuring the ingredients to the Bank keeping competitive edge of the Bank in
the industry.

iii)
Potential Risk factors/Potential external events:
external events
It is needless to say that there are certain risk factors which are external in
nature and can affect the business of the Bank. The factors discussed below can
significantly affect the business:
General business and political condition
PBLs performance greatly depends on the general economic conditions of the
country. The effect of recession is still unfolding which may result to slow down in
business environment. Political stability is must for growth in business activities.
Changes in credit quality of borrowers
Risk of deterioration of credit quality of borrowers is inherent in banking business.
This could result due to global economic crisis and supply side distortion. The
changes in the import prices affected the commodity sectors and ship breaking
industry. Deterioration in credit quality requires provisioning.
Changes in policies and practices of regulatory bodies to revise practices, pricing
and responsibilities of the financial institutions
PBL is subject to regulations and compliance of regulation is must. Changes
in policies with regard to interest rates, pricing have significant effect on the
performance of the Bank. Bangladesh Bank is expected to continue its persuasion
to reduce the spread and charges further which is likely to affect the performance.
Changes in provisioning requirement will also affect the performance of the bank.
Implementation of Basel-II
Basel-II is fully effective from 2010 and PBL needs to be complied with respect
to credit risk management, its supervision and establishment of effective internal
control. The grading of the borrowers and its link with capital requirement may
slow down the credit expansion. The establishment of effective control requires
more investment in technology and operating expenses are likely to increase.
Volatility in equity market
The Bangladesh Securities and Exchange Commission and the stock exchanges
improved their supervisory role but the equity market is still volatile. The recession
fear also added to the volatility. If volatility continues it is likely to affect the
performance of the bank.
Changes in market conditions
Changes in market conditions particularly interest rates on deposits and volatility in
foreign exchange market is likely to affect the performance of the bank. Depositors
are becoming increasingly price sensitive and any unilateral upward change by
a bank will exert pressure on interest rate structure of the banking sector. It is
feared that wage earners remittances may decline due to fall in job opportunity in
international market. Unless offset by export performances, there may be pressure
in the foreign exchange market.
The risk of litigation
In the ordinary course of business, legal actions, claims by and against the bank
may arise. The outcome of such litigation may affect the financial performance of
the bank.
Success of strategies
PBL is proceeding with its strategic plan and its successful implementation is very
important for its financial performance. Major deviation due to external and internal
factors will affect the performance of the bank.
iv)
Policies
and processes
for mitigating
operational
risk.
Prime Bank limited (PBL) has formed a separate Risk Management Division
under Chief Risk Officer to ensure following things:
Designing of organizational structure by clearly defining roles and responsibilities
of individuals involved in risk taking as well as managing it;
Formulation of overall risk assessment and management policies, methodologies,
guidelines and procedures for risk identification, risk measurement, risk monitoring,
defining an acceptable level of risk, mitigation of all the core risks in line with their
respective guidelines provided by Bangladesh Bank;
Reviewing and updating all risks on systematic basis as necessary at least
annually, preferably twice a year, ensuring that adequate controls exist and that
the related returns reflect these risks and the capital allocated to support them.
The main risk areas will be (i) Balance sheet Risk Management, (ii) Credit Risk,
(iii) Foreign Exchange Risk, (iv) Internal Control and Compliance Risk, (v) Money
Laundering Risk and (vi) IT Risk. The following risks have also to be reviewed:
Operational Risk
Market Risk
Liquidity Risk
Reputation risk
Insurance Risk
Sustainability Risk
Setting the portfolio objectives and tolerance limits/parameters for each of the risks;
Formulation of strategies and different models in consistency with risk management
policy based on IT Policy and in house IT support which can measure, monitor and
maintain acceptable risk levels of the bank;
Development of information systems/MIS inflow and data management
capabilities to support the risk management functions of the bank.
Ensure compliance with the core risks management guidelines at the department
level, and at the desk level;
The unit will work under banks organizational structure and suggest to the CEO
to take appropriate measures to overcome any existing and potential financial
crisis;
Analysis of self resilience capability of the bank;
Initiation to measure different market conditions, vulnerability in investing in
different sectors;
The unit will also work for substantiality of capital to absorb the associated risk
in banking operation.
Activities undertaken by Risk Management Division since inception and recent
approaches
Risk Management Division of PBL is currently arranging monthly meeting on
various issues to determine strategies in consistency with risk management policy,
which can measure, monitor, and maintain acceptable risk level of the bank.
Minutes of each meeting is submitted to the Bangladesh Bank on monthly basis;
Besides, Risk Management Paper has also been prepared on the basis of 03
months monthly minutes addressing different areas of risk and their mitigating
tools & techniques guided by the members of Risk Management Division;
In order to perform the risk management function smoothly, RMD had invited all
the Operational Divisions vide letter to the Head of respective Divisions to form
an internal committee along with defined duties of concerned officials. It is to be
noted here that due to continuous and successful persuasion, all the Operational
Divisions have formulated and established internal risk management committees.
Stress Testing in PBL:
Risk Management Division (RMD) of PBL has prepared a stress testing model
in line with the Bangladesh Banks guideline which initially focused on Simple
Sensitivity and Scenario Analysis on the following five risk factors:
Interest rate;
Forced sale value of collateral;
Non-performing loans (NPLs);
Share prices; and
Foreign exchange rate.
The stress testing based on the financial performance of the bank as on
December 31, 2012 shows that when all the shocks are considered together,
Capital Adequacy Ratio (CAR) of PBL will be 10.60%, 6.74% and 1.78% in minor,
moderate and major levels of shock respectively. So, the bank can absorb minor
level of shock only when all the shocks are considered together. However, for
absorbing other levels of shock which is very unlikely in the industry, the bank may
require additional capital and reserve.

v)
Approach
for calculating
capital charge
for operational
risk.
The Banks operating in Bangladesh shall compute the 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 three years. Figures for
any year in which annual gross income is negative or zero, should be excluded
from both the numerator and denominator when calculating the average. The
capital charge may be expressed as follows:
K = [(GI 1 + GI2 + GI3) ]/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: Gross Income (GI) is defined as Net Interest Income plus Net
non-Interest Income. It is intended that this measure should:
i). be gross of any provisions;
ii). be gross of operating expenses, including
fees paid to outsourcing
service providers;
iii). exclude realized profits/losses from the sale of securities held to maturity in
the banking book;
iv). exclude extraordinary or irregular items;
v.) exclude income derived from insurance.
Quantitative
disclosure
Particulars
b) The capital requirement for operational risk
Solo Basis
Consolidated
Taka in Million
1,817.50
1,936.98
Shareholders' Information
Financial Highlights- Group & PBL

Financial Highlights- PBL
Key financial Data & Key Ratios- PBL
Graphical Presentation- PBL
Segment Analysis
Shares held by the Directors in 2012
Economic Impact Report
- Capital Adequacy
- Value Added Statement
- Economic Value Added Statement
- Payment of Dividends
Governance on Investors Relation
Financial Highlights-Group & PBL

Prime Bank Limited
Interest income
Profit before provision and tax
Provision for loans and assets
Profit after provision before tax
Tax including deferred tax
Profit after tax
2012
Taka in
million
22,822
8,551
3,216
5,335
2,636
2,699
2011
Taka in
million
16,709
7,427
661
6,766
3,132
3,634
At the year end

Total shareholders equity
Deposits
Loans and advances
Investments
Property, plant and equipment
Total assets
20,787
182,053
160,890
49,670
4,363
236,833
Statutory Ratios (%)

Liquidity ratio
Capital adequacy ratio
Share Information
Earnings per share (Taka)
Dividend (%)
Net assets value per share (Taka)
Performance during the year
Ratios (%)
Non performing loans
Return on average shareholders fund
Return on average assets
Group
36.58
15.13
386.50
-21.15
-15.83
-25.73
2012
Taka in
million
23,808
8,840
3,324
5,516
2,815
2,700
2011
Taka in
million
17,547
8,137
1,051
7,086
3,397
3,689
19,095
159,816
138,848
39,172
3,975
199,950
8.86
13.91
15.87
26.80
9.76
18.45
20,962
181,962
165,042
48,003
4,420
238,169
19,263
159,812
141,802
37,516
4,033
200,996
8.82
13.86
16.39
27.95
9.58
18.49
35.54
12.73
32.96
12.45
2.58
0.28
35.54
12.64
32.96
12.46
2.58
0.18
2.88
20.00
22.21
3.88
30.00
24.49
-25.77
-10.00
-9.28
2.89
20.00
22.40
3.94
30.00
24.70
-26.65
-10.00
-9.32
3.83
13.53
1.24
1.37
20.19
2.05
2.46
-6.66
-0.81
3.74
13.43
1.23
1.35
20.09
2.07
2.39
-6.66
-0.84
Change
%
Constituents of Liabilities & Capital of PBL
20.97%
1.84%
8.73%
3.95%
35.68
8.64
216.29
-22.16
-17.12
-26.80
Constituents of Assets of PBL
5.62%
76.87%
Change
%
7.52%
67.93%
1.73%
4.83%
Paid-up Capital
Reserves & Surplus
Borrowings
Other Liabilities
Deposit
Loans & Advances
Investments
Liquid Assets
Other Assets
Fixed Assets
Constituents of Assets of Group
20.15%
1.86%
69.30%
7.52%
1.18%
Loans & Advances
Investments
Liquid Assets
Other Assets
Fixed Assets
Financial Highlights-PBL
Profit Before Tax
Gross Revenue
(Taka in million)
2011
2012
Gross revenue
Operating income
Profit after tax
Total capital
Total deposits
Total loans & advances
Total assets
No. of deposits accounts
No. of loans & advances accounts
Return on assets (%)
Return on equity (%)
Statury liquidity ratio (%)
Capital adequacy ratio (%)
No. of employees
No. of branches
No. of SME branches/centers
Rating
Long -term
Short-term
5,335
6,766
30,902
24,207
(Taka in million)
2011
2012
2012
30,902
13,492
2,699
2,575
182,053
160,890
236,833
1,034,120
55,709
1.24
13.53
35.54
12.73
Taka in million
2011
24,207
11,559
3,634
24,069
159,816
138,848
199,950
830,544
58,192
2.05
20.19
32.96
12.45
2,544
113
17
2,292
102
17
AA+
ST-1
AA+
ST-1
Shareholders Information
Key Financial Data & Key Ratios-PBL

Particulars
Interest income
Interest expenses
Net interest income
Investment income
2008
2009
Taka in million
2010
9,096
10,856
12,147
1,970
2,430
4,323
7,126
1,744
8,426
3,372
7,824
2,632
2011
16,709
12,648
4,061
4,157
Commission, exchange and brokerage
1,437
1,749
2,262
2,689
Operating income
5,778
8,196
9,795
11,559
3,847
5,289
6,176
7,427
Other operating income
Operating expenses
Profit before provision and tax
Provision for loans and assets
Profit after provision before tax
Tax including deferred tax
Profit after tax
Balance Sheet
Authorized capital
Paid-up capital
Total shareholders equity

Deposits
Long-term liabilities
Loans and advances

Investments
Property, Plant and Equipment
628
1,931
1,384
2,463
1,232
644
2,907
700
4,589
1,805
579
3,618
540
5,636
2,535
652
4,132
661
6,766
3,132
2012
22,822
17,410
5,411
4,633
2,429
1,018
13,492
4,941
8,551
3,216
5,335
2,636
1,232
2,784
3,101
3,634
2,699
10,000
10,000
10,000
10,000
25,000
2,844
6,697
3,555
11,745
5,776
16,908
7,798
19,095
9,358
20,787
88,021
106,956
124,574
159,816
182,053
75,156
89,252
116,057
138,848
160,890
31,044
23,103
1,375
38,209
19,934
1,573
47,918
20,484
1,695
63,379
39,172
3,975
84,827
49,670
4,363
Earning assets
100,261
109,905
137,577
179,537
212,204
Total assets
110,437
124,806
154,342
199,950
236,833
Net current assets
Total liabilities
Current ratio
9,962
103,740
1.14
3,435
113,061
1.05
7,349
137,434
1.09
2,262
180,856
1.02
2,735
216,046
1.02
Gearing ratio
83.84
80.56
76.98
77.88
80.97
Staturory liquidity Ratio
19.86
28.50
26.00
32.96
35.54
168,532
Quick ratio
Equity debt ratio (%)

Other Business
Import
Export
Remittance
Guarantee Business
Capital Measures (Consolidated)
Total risk weighted assets
Core capital (Tier-I)
Supplementary capital (Tier-II)

Total capital
Tier-I capital ratio
Tier-II capital ratio
Total capital ratio

0.93
0.80
0.84
0.78
6.45
10.39
12.30
10.56
91,424
96,452
147,704
174,384
68,550
0.77
9.62
76,097
106,943
133,396
143,612
10,010
13,673
29,000
27,844
29,391
72,253
82,710
183,747
194,380
205,103
22,669
6,265
1,594
26,447
9,057
3,112
28,433
15,791
5,692
36,890
18,744
5,485
42,443
20,664
5,252
7,859
12,168
21,483
24,229
25,916
2.21
3.76
3.09
2.82
2.56
8.67
10.88
10.95
14.71
8.60
11.69
9.64
12.46
10.08
12.64
Key Financial Data & Key Ratios-PBL

Particulars
2008
2009
Taka in million
2010
2011
2012
Credit Quality
Non-performing loans (NPLs)
NPLs to total loans and advances (%)
Provision for unclassified loans
Provision for classified loans
1,323
1,149
1,368
1,908
6,168
1.76
1.29
1.18
1.37
3.83
1,040
1,303
1,463
1,725
1,965
734
631
642
778
1,949
Share Information
Market price per share (Taka)
No. of shares outstanding (Million)
No. of shareholders (actual)
53.98
65.30
94.45
44.50
37.00
284.38
355.47
577.64
779.81
935.77
9,180
10,339
19,748
26,030
23,964
4.33
7.83
5.69
4.70
2.88
Dividend:
25%
40%
40%
30%
20%
Cash
0%
10%
5%
10%
10%
Bonus
25%
30%
35%
20%
10%
27.78
44.44
49.52
40.21
21.82
Effective dividend ratio (%)

Dividend cover ratio (times)
1.73
1.96
1.42
1.57
1.44
Dividend yield (%)
4.63
6.13
4.23
6.74
5.41
15,349
23,212
54,572
34,702
34,624
Net asset value per share (Taka)
Market capitalization
23.55
33.04
29.27
24.49
22.21
Price earning ratio (times)
12.46
8.34
16.60
9.47
12.85
Net interest margin on average earning assets
2.28
2.31
3.49
2.56
2.76
Net non-interest margin on average earning assets
2.17
2.72
1.50
2.12
1.60
Operating Performance Ratio (%)
Earning base in assets (average)
91.07
89.34
88.66
89.51
89.69
Gross profit ratio
44.77
49.31
55.59
47.75
43.66
Net interest income as a percentage of working funds
2.07
2.07
3.10
2.29
2.48
Profit per employee
2.48
2.87
2.89
3.24
3.36
Operating profit as a percentage of working funds
4.05
4.50
4.43
4.19
3.92
Cost-income ratio
33.42
35.47
36.94
35.75
36.62
Credit-deposit ratio
85.38
83.45
93.16
86.88
88.38
8.55
8.41
6.39
8.15
8.75
Yield on average advance
13.52
13.16
11.76
13.09
15.17
Return on average assets
1.30
2.37
2.22
2.05
1.24
Return on average equity
20.58
30.19
21.65
20.19
13.53
70
84
94
102
113
Cost of funds on average deposits
Other information
No. of branches
No. of SME branches/centers
Number of ATM
No. of employees
No. of foreign correspondents
14
17
17
29
39
43
81
134
1,551
1,844
2,139
2,292
2,544
518
602
621
644
660
Average earning assets
86,530
105,083
123,741
158,557
195,871
Average total assets
95,013
117,622
139,574
177,146
218,392
Average deposits
79,266
97,488
115,765
142,195
170,934
Average loans & advances
66,420
82,204
102,654
127,452
149,869
5,985
9,221
14,327
18,002
19,941
Average equity
Graphical Presentation PBL
2008
13.53
20.58
21.65
30.19
Return on Equity (%)
2009
2010
2011
2012
Graphical Presentation PBL
Segment Analysis
Profit before Tax
74.02%
15.62%
2.73%
Group
6.76%
0.87%
Islamic Banking
Off-shore Banking
Local Subsidiaries (PBIL, PBSL)
Overseas Subsidiaries (Exchange House, Finance Co.)
Operating Revenue
Assets Employed
86.24%
86.64%
7.21%
1.19%
4.15%
1.21%
6.84%
2.13%
3.83%
0.56%
Islamic Banking
Off-shore Banking
Islamic Banking
Off-shore Banking
Profit before Tax
80.14%
16.91%
PBL
2.95%
Islamic Banking
Off-shore Banking
Assets Employed
Operating Revenue
7.16%
91.12%
1.26%
Islamic Banking
Off-shore Banking
2.22%
7.62%
90.62%
Islamic Banking
Off-shore Banking

Particulars
Sponsors
Financial Institutions
Foreign Investors
Non-resident Bangladeshi
General Public
Number of Shares
2012
2011
379,553,447
317,740,777
188,237,104
163,401,686
35,695,212
14,282,281
5,031,043
6,018,026
327,254,663
278,366,788
935,771,469
779,809,558
% of Shares
2012
2011
40.56%
40.75%
20.12%
20.95%
3.81%
1.83%
0.54%
0.77%
34.97%
35.70%
100%
100%
Shares held by Directors in 2012

Particulars
Mr. M. A. Khaleque

Mr. Nasim Anwar Hossain
Mrs. Nazma Haque
Mr. Khandker Mohammad Khaled
Quazi Sirazul Islam
Status
Chairman
Vice Chairman
Vice Chairman
Director
Director
Director
Director
Director
Mrs. Salma Huq
Director
Mrs. Muslima Shirin
Mr. Manzur Murshed
18,983,935
18,720,079
22,150,681
21,644,226
12,409,969
94.69%
20.00%
18,798,231
25,973,071
18,741,962
20.00%
51.02%
10,120,151
18,719,181
84.97%
Director
18,716,670
Director
Prof. Ainun Nishat
18,768,111
19,860,746
Director
Director

Mr. Tanjil Chowdhury (Representative of East
Coast Shipping Lines Limited)
Change
29,322,129
Director
Mr. Nafis Sikder
9,640,093
16,550,622
Closing
Position
Mr. Md. Nader Khan

Mr. Imran Khan
Opening
Position
Director
Director
Depositor Director
Depositor Director
Independent
Director
18,716,136
34,563,056
25,283,258
18,736,602
23,478,344
25.31%
9,040,272
18,728,326
107.17%
22,180
26,616
20.00%
98,164,115
349,550,532
256.09%
Economic impact report

The banks overall mission is to deliver optimum value to its customers, employees, shareholders and the nation
and the business strategy is geared towards achieving this. This section covers the value the bank delivers to its
shareholders and the nation at large.
The banks policy has been to deliver optimum value in a manner that is consistent with the highest levels of fairness
and transparency. For the bank, it has not been a case of building financial value and enhancing the bottom line at
any cost, but rather participating in a process of creating value through fair and ethical means. Building sustainable
value of all stakeholders is an important corporate goal.
Some of the measures taken to create, sustain and deliver optimum value are as follows:
Maintaining capital adequacy
Capital adequacy symbolizes the financial strength and stability of a bank. It limits the extent up to which banks can
expand their business in terms of risk weighted assets. Like all commercial institutions, banks too constantly look
at ways of expanding their operations by acquiring property, plant and equipment, opening branches, in addition to
mobilizing deposits, providing loans and investing in other assets.
Regulatory capital requirements are therefore necessary to prevent banks from expanding beyond their ability to
manage (over trading), to improve the quality of banks assets, to control the ability of the banks to leverage their
growth and to lead to higher earnings on assets, leading to peace of mind of all the stakeholders. The bank keeps a
careful check on its capital adequacy ratios.
The capital adequacy computation on consolidated basis as at December 31, 2012 is given below:
Details of Capital Fund
Taka in million
2012
2011
Tier-I: Core capital

Paid-up capital
9,358
7,798
Share premium
2,241
2,241
Statutory reserve
6,840
5,773
Surplus in consolidated profit and loss account / Retained earnings
2,225
2,932
20,664
18,744
General provision maintained against unclassified loans / investments
1,965
1,725
General provision maintained against off-balance sheet exposure
1,080
940
General provision maintained against Off-shore Banking Units
61
61
Revaluation gain / loss on investment (50% of total)
21
130
126
126
2,000
2,500
5,252
5,485
25,916
24,229
205,103
194,380
10.08
9.64
2.56
2.82
12.64
12.46
Minority interest in subsidiaries
Total Tier-I capital

Tier-II: Supplementary capital
Revaluation reserve for equity instruments (10% of unrealized market gain)

Revaluation reserve for fixed assets (50% of total)
Subordinated bond
Exchange equalization account
Total Tier-II capital
Total capital
Total risk-weighted assets
Core capital ratio (%)
Supplementary capital ratio (%)
Total capital adequacy ratio (%)
Value added statements for the year ended December 31, 2012
Taka in million
Particulars
2012
Income from banking services
2011
30,902
24,207
(19,388)
(14,489)
11,514
9,718
(3,216)
(661)
8,298
9,057
To employees as salaries & allowances
2,685
2,067
To providers of capital as dividend & reserve
2,939
3,693
2,450
2,907
(240)
(58)
Depreciation
278
224
Deferred taxation
186
225
225
390
8,298
9,057
Less: Cost of services & supplies

Value added by banking service
Non-banking income
Provision for loans & off-balance sheet exposure
Distribution of value addition
To expansion and growth

Retained profit
Total
Distribution of value addition- 2012
Distribution of value addition- 2011

32.10%
29.53%
-2.89%
3.35%
2.24%
32.36%
35.42%
-0.64%
2.47%
2.48%
40.78%
22.82%
dividend & reserve
Retained profit
Deferred taxation
To employees as
Depreciation
dividend & reserve
Retained profit
Deferred taxation
2008
2009
2010
2011
12.64
11.69
12.46
14.71
Capital Adequacy Ratio (%)
10.88
To employees as
Depreciation
2012
Economic Value Added Statement

Economic value added is a measure of profitability which takes into consideration the cost of total invested equity.
Shareholders / equity providers are always conscious about their return on capital invested. As a commercial banking
company, we are deeply concerned for delivery of value to all of our shareholders / equity providers.
Taka in million
Particulars
2012
Shareholders equity
2011
2010
20,787
19,095
16,908
4,082
3,503
2,975
24,869
22,598
19,883
23,734
21,241
17,011
Profit after taxation
2,699
3,634
3,101
Add: Provision for loans / investments, off-balance sheet

exposure and Off-shore Banking Units
3,216
661
540
Less: written-off during the year
(404)
(200)
(257)
5,511
4,095
3,384
13.46%
13.46%
12.26%
Cost of average equity
3,194
2,859
2,085
Economic value added
2,316
1,237
1,299
87.33%
-4.84%
-24.39%
Add: Cumulative provision for loans / investments, off-balance

sheet exposure and Off-shore Banking Units
Average shareholders equity

Earnings
Average cost of equity (based on weighted average rate of Shanchay

Patra issued by the Government of Bangladesh) plus 2% risk premium.
Growth over last year
Taka in million
Maturity analysis
Interest earning assets
Below
1 year
1-5 years
Above
5 years
Total
124,535
57,328
30,341
212,204
9,418
3,320
11,891
24,629
Total assets
133,953
60,648
42,232
236,833
Interest bearing liabilities
128,321
51,042
23,372
202,735
2,898
6,684
3,729
13,311
131,219
57,726
27,101
216,046
Maturity Gap
2,735
2,921
15,131
20,787
Cumulative Gap
2,735
5,656
20,787
Non-interest earning assets
Non-interest bearing liabilities

Total liabilities
Maintaining liquidity
Payment of dividends
The liquidity policy of the bank has always been to carry

a positive mismatch in the interest earning assets and
interest bearing liabilities in the 1 to 30 days category. Our
liquidity remained at optimum levels during the year. The
liquid assets ratio stood at 35.54% ( required 19% of total
demand & time deposits) in December 2012.
The dividend policy of bank has always been to pay a

decent dividend to its shareholders while ploughing back
sufficient profits to fund growth and capital adequacy
requirements. As a result of this prudent dividend policy,
the bank has been able to build up its shareholders fund
base to satisfactory levels.
The assets and liabilities committee (ALCO) of the bank

monitors the situation and maintains a satisfactory tradeoff between liquidity and profitability.
Considering the performance of the bank over the past

year, the Board has recommended stock dividend of 10%
and cash dividend of 10% for the year 2012.
Market Value Added Statement

Market Value Added (MVA) statement is the difference between the total market value and the total book value of shares
of a bank. A high MVA indicates that the bank has created substantial wealth for the shareholders. MVA is equivalent
to the present value of all future expected economic value added. The share market value of banks shares stood at Tk
34,624 million whereas the book value of the shares stood at Tk 20,787 million, resulting a Market Value Addition of Tk
13,837 million as of December 31, 2012. The calculation of Market Value Added is given below:
Particulars
No. of shares
Value in Taka
Taka in million
Market value
935,771,469
37.00
34,624
Book value
935,771,469
22.21
20,787
Market value added
13,837
Economic Value Addition

(Taka in million)
2,316
1,299
2010
1,237
2011
2012

Month
DSE
High
Taka
Low
Taka
CSE
Volume
High
Taka
Low
Taka
Volume
Total
Volume on
DSE & CSE
January12
46.50
36.20
11,608,011
46.50
36.50
796,039
12,404,050
February12
45.50
33.80
13,479,475
45.00
33.70
679,171
14,158,646
March12
43.10
31.00
26,675,605
43.00
31.00
568,272
27,243,877
April12
40.20
34.20
21,113,315
40.00
34.00
565,012
21,678,327
May12
37.70
33.80
9,454,793
37.60
33.00
277,563
9,732,356
June12
36.90
29.70
7,401,326
35.90
27.90
285,594
7,686,920
July12
33.00
29.40
7,647,783
29.50
27.00
364,061
8,011,844
August12
36.40
30.50
9,403,775
35.30
28.10
261,677
9,665,452
September12
38.90
30.90
18,300,174
35.30
28.10
397,944
18,698,118
October12
36.00
32.50
5,544,529
36.20
29.80
143,703
5,688,232
November12
35.00
29.00
3,763,805
35.90
27.50
113,949
3,877,754
December12
38.50
29.50
8,083,481
39.00
28.10
331,471
8,414,952
Market Capitalization
(Taka in million)
54,572
15,349
2008
34,624
34,702
23,212
2009
2010
2011
2012

Quarterly Results
Audited consolidated results for the 4th quarter ended 31 December 2011
Unaudited consolidated results for the 1st quarter ended 31 March 2012
Unaudited consolidated results for the 2nd quarter and half-year ended 30 June 2012
Unaudited consolidated results for the 3rd quarter ended 30 September 2012
Dividends
Distribution of stock dividend of 20% and cash dividend of 10% in respect of

financial year ended 31 December 2011
Announced on
Announced on
Announced on
Announced on
15th February 2012

14th May 2012
31st July 2012
23rd October 2012
Stock Dividend
Cash Dividend
8th April 2012

15th April 2012
15th February 2012
29th March, 2012
Notice of Annual General Meeting

Annual General Meeting
Other Information
Exchange controls and other limitations affecting equity security holders
Non-residents can buy and sell PBLs shares and transfer the dividends after complying with Foreign Exchange
Transaction Guidelines 1996 and SEC Rules.
Taxation on shares and dividends
Following is the current deduction of tax at source on dividend income as per current fiscal act:
In case of resident / non-resident Bangladeshi company at the rate of 20 percent
If the shareholder resident / non-resident Bangladeshi person other than company at the rate of 10 percent
If the shareholder resident (other than Bangladeshi non-resident) person other than company at the rate of 25 percent
Capital gain arising from transfer or sale of Government Securities is tax exempted. Capital gain arising from
transfer or sale of Stocks and Shares of publicly listed companies listed with stock exchanges is taxable at the
rate of at least 10 percent. For non-resident the tax exemption on capital gain shall be allowed if the similar
exemption is allowed in the country of residence of the non-resident
Stock Details
Stock Symbol
Company Code
Listing year
Market category
Electronic share
Market lot
Total number of securities
Particulars
DSE
PRIMEBANK
11116
2000
A
Yes
250
935,771,469
CSE
PBBANK
22013
1999
A
Yes
250
935,771,469
Availability of information about PBL
Annual Report 2012 and other information about PBL may be viewed on PBLs website www.primebank.com.bd PBL provides
copies of Annual Reports to the Bangladesh Securities and Exchange Commission, Bangladesh Bank, Dhaka Stock Exchange
and Chittagong Stock Exchange for their reference. Investors may read them at their public reference room or library.
Governance on Investors Relation
PBL is strongly committed to equitable treatment of every shareholder, whether they are major or minority shareholders, institutional
investors, or foreign shareholders. To ensure equal treatment of all shareholders, the bank created various mechanisms, such as:
Shareholders who are unable to attend the shareholders meeting, the bank provides proxy forms which allow shareholders to specify
their vote on each agenda. The proxy forms, which are in accordance with the standard format, are sent along with the annual report.
The shareholders meetings proceed according to the order of the agenda, without adding new and uninformed agenda, in
order to give the opportunity to shareholders to study the information on the given agenda before making a decision. Moreover,
there are no changes to the important information in the shareholders meeting.
The bank sees the importance of the consideration of transactions which may have conflict of interest or may be connected or
related transactions, and abides by good corporate governance principles, including the rules and regulations of the Bangladesh
Securities and Exchange Commission and the Dhaka Stock Exchange and the Chittagong Stock Exchange transactions, directors,
management and those who are related persons do not participate in the consideration to approve such transactions.
The bank provides a channel for minority shareholders to propose issues deemed important and appropriate to include in the
agenda of the banks annual general meeting of shareholders and to nominate candidates with appropriate knowledge, abilities
and qualifications to be considered for the position of director.
The bank continues to have regular communication with the shareholders through periodic updates of performance and at any
other time when it believes it to be in the best interest of shareholders generally.
Investors Inquiries
Any queries relating to shareholdings for example transfer of shares, changes of name and address, and payment of dividend
should be sent to the following address:
Share Department
Sarker Mansion (8th Floor)
29, Rajuk Avenue, Dhaka-1000
Phone: 9567265/261
Email: info@primebank.com.bd
Customer Care
The guiding principles also provide for standards of
PBLs strategy is to strive for Excellence in customer

service. This has been embedded in the banks customer
care culture. Maintaining high standards of customer
service, delivering excellent services to customers and
exceeding customers expectation are the cornerstones
of the banks continuous business growth strategy. The
banks corporate tagline- a bank with a difference further
inculcates the mindset and promotes the actions of all
levels of staff to provide excellent customer service in their
dealings with customers.
service effectively and efficiently.
In 2012, PBL continued to invest significant resources to

enhance and sustain the superior customer service geared
towards improving greater customer experience and
satisfaction. It is this continuous unwavering commitment
that has enabled the bank to build its franchise and the
PBL Brand, which has become well-recognized for its
superior customer service. This, together with the longlasting customer relationship built over the years, have
enabled the bank to differentiate itself among its peers in
the highly competitive market as well as contributed to the
banks business growth and success.
Guiding Principles for Customer Service
Customer service in PBL is guided by banks established
principles which spell out in written and oral form banks
commitment to deliver a high standard of customer
service. These principles outline the types of services
the bank aims to provide and the manner in which the
customers can contact the bank to provide feedback on
how the bank can serve its customer better. The guiding
principles are summarized below:
Accountability: The bank will clearly explain to its
customers the financial benefits and the risks involved
of the banks products and services that customers are
interested in.
Fairness: The bank will act fairly and reasonably towards
its customers in a consistent and ethical manner. Any
dispute will be resolved fairly and quickly in accordance
with a clear set of procedures.
Privacy: The bank will treat all customer information
as private and confidential and ensure the security of the
usage of customer information.
Reliability: The bank will co-operate with industry
players so that customers can enjoy secure and reliable
banking and payment systems.
Transparency: The bank will provide its customers with
clear, relevant and timely information about its products and
services in order to help customers make informed decisions.
service which guide the PBL staffs in providing customer

Personalized Face-to-Face Customer Service
PBL places great importance on interacting with

its
customers,
especially
personalized
face-to-face
interaction. It is through such interactions that the staffs
of the bank serve the customers and deliver superior

customer service to meet their needs.
The customer service officers at the front desks of the

bank in 130 branches across the country provide face-
to-face service to banks customers who walk into the
branches, assist customers on all inquiries on banking
matters, attend to customers feedback and complaints

and provide prompt resolutions to customer issues. These
officers are trained to serve the customers to achieve a
high level of customer satisfaction and to gather customer

feedback for business and service improvement.
Besides the customer service officer, PBL has a pool of
well-trained sales executives across the country to meet

and serve customers who have varying needs for financial
services from the bank.
Head of branches are also tasked to know, serve and build

relationship with the key customers of their branches. They
are responsible for the overall customer service standards

and customer satisfaction of their respective branch.
Superior service delivery through technology based

products and services
Another dimension of customer service is providing
customers with easy access to services at their

conveniences. Increasingly sophisticated customers are
demanding for services to be made available whenever
and wherever they need them. Therefore, apart from the
face-to-face customer service provided during the normal

branch business hours, PBL has been investing in self
service technologies that enable the delivery of customer

service at the convenience of customers.
With the use of telecommunication facilities, customer
service is also provided through PBLs customer service
helplines where customers can call banks customer

service personnel for any inquiries, complaints and
to obtain solutions to their banking issues. There are
dedicated helplines covering all spectrums of services that

PBL provides. Some of these helplines operate extended
hours to serve customers at their convenience.
Over the years, PBL has expanded its self service
alternate delivery channels such as the Automated Teller

Machine (ATM) network, Internet Banking, SMS Banking,
Phone Banking, Mobile Banking, Biometric Smart Card

Customer Care
and KIOSK to serve its large customer base. New
services like automated Cheque Cash Deposit Machine
Phone Banking
In 2012, the bank installed 53 new ATMs country wide.
The bank successfully implemented Phone Banking

services in 2011 and by year-end 2012 the bank has
provided this service to over 2,000 number of account
holders. With Phone Banking, customers get the services
like available balance enquiry, debit card activation, lost
debit card block, change of TIN number, available credit
card balance and last date of bill payment for credit card.
located in the busy and preferred locations across the
Mobile Banking
(CCDM) will be added in 2013. Details of the alternate

delivery channels as given below will give an idea about
the banks superior services provided to the customers:
ATM Network
Now the bank has 134 ATMs in operation and these are
country. As per banks approved expansion plan, PBL
by fingerprint recognition. By end of 2012, total number
Th e bank successfully launched Mobile Banking services

in 2012 to facilitate financial services using mobile phones
for the account holders. With Mobile Banking, customers
get the services like deposit and withdrawal of money
from remote agents, SMS Banking such as balance
inquiry, Mini Statement etc., bill / utility payment service,
intra-bank fund transfer, fund transfer to any registered
mobile, shopping through registered merchant, Visa
Money Transfer (VMT) to enable customers to send /
receive money from a VISA Card to another irrespective
of the issuing bank and facility to link banks existing Debit
Card or Credit Card through mobile.
the country were enjoying this service. With Biometric
Information KIOSK / Bills Pay
shall install another 50 ATMs in 2013. Moreover, the bank

has around 1,200 shared ATMs across the country. By the
end of 2012, the number of ATM Cards (proprietary) of

the bank reached 190,946 whereas the number of Master
Debit Card reached to 75,641.
Biometric Smart Card
The bank successfully launched Biometric Smart Card
in 2012 to provide financial service for the un-banked
and under banked people in the rural and urban areas

of agents was 437 and 18,000 account holders across
Smart Card, customers get the services like opening and

maintaining a smart card virtual account, cash deposit and
withdrawal from PBL DG Smart Card Account, transfer

from PBL DG Smart Card Account to CBS Account, salary
disbursement to PBL DG Smart Card Account and foreign
remittance collection. Other facilities like cash withdrawal
from PBL ATM by using DG Smart Card Account, Mobile
Top-up and DPS installment collection are in the process.

Internet Banking (Altitude)
Launching of Altitude, Internet Banking Software
developed by banks in-house IT professionals was one of
the successes of PBL which was further extended in 2012.
PBL was one of the pioneer banks to start this Inter-Intra

financial banking service for the customers. With Altitude,
customers get the services like real time balance enquiry,
intra-inter bank fund transfer, intra-inter bank credit card

bill payment and cheque requisition. Additional features
The bank has 4 Information KIOSK. PBL ATM Card

and Master Debit Card holders can enjoy facilities like
account balance enquiry, account statement through the
Information KIOSK. In addition, Utility Bill payment of
a number of companies is also possible by Information
KIOSK and ATMs
Centralized Clearing Cell (CCC) and Internet Banking
Operations
To ensure a modern payment and settlement system
infrastructure for the country, Bangladesh Automated
Clearing House (BACH), the first ever electronic clearing
house, with its two components- Bangladesh Automated
Cheque Processing System (BACPS) and Bangladesh
Electronic Fund Transfer Network (BEFTN) a state-of-theart technology went on live on October 2010 and February
2011 respectively.
PBL introduced SMS Banking services in 2010 and
PBL is providing services through these two projects

to its valuable customers. Total number and amount
of instruments in the automated clearing (BACPS and
BEFTN) is increasing day by day as customers are being
highly benefited.
number of accounts for SMS Banking. With SMS Banking,
Benefits of BACPS
like utility bill payment is in the process.

SMS Banking
by end of 2012 the bank has reached more than 7,530

customers get the services like welcome alert (for account
opening), any transaction related alert in Core Banking
System (CBS), Fixed Deposit maturity alarm, high value
transaction alert, account status change alert, payment

(loan) failure alert and Cheque clearing failure alert
BACPS minimizes fraud and forgery, reduces cheque

carrying and clearing cost, reduces payment processing
time dramatically, ensures faster and secured payment
and settles payment of all cheques of the whole country
under a single head of the Bangladesh Bank.
Total amount of cheques (Outward & Inward) in 2011 and 2012
No. of cheques(Outward & Inward) in 2011 and 2012
30000
1000000
900000
25000
800000
700000
600000
15000
2011
500000
2012
400000
2011
2012
10000
300000
5000
200000
100000
0
No. of Cheques (Outward)
Outward_Amount (Core)
No. of Cheques (Inward)
Inward_Amount (Crore)
Benefits of BEFTN
BEFTN eliminates cheque printing and clearing cost,
eliminates lost and stolen instruments, reduces risk and
fraud, ensures secured and faster payment and saves
time.
No. of EFT requests presented (Outward) and received (Inward) in 2012
Total Amount presented (Outward) and received (Inward) in 2012

450
400
350
300
OUTWARD
(Amount, Crore)
250
200
80000
150
70000
100
INWARD
(Amount, Crore)
50
60000
OUTWARD
(Requests)
50000
40000
0
JAN-MAR
APR-JUN
JUL-SEPO
CT-DEC
INWARD
(Requests)
30000
20000
Facilities provided by CFRC and Card Division through

Centralized Clearing Cell
10000
0
JAN-MAR
APR-JUN
JUL-SEPO
CT-DEC
Especially BEFTN has made the disbursement of foreign

remittance very faster and reliable. So total amount of
Customer Care
foreign remittance is increasing with time dramatically.
Besides, merchant (POS) customers of CARD division
are also getting the payment in their own account (any
bank) without any difficulties.
No. of Outward Request of CFRC & CARD Division in 2011 and 2012
180000
160000
140000
120000
2011
100000
2012
80000
60000
40000
20000
0
No. of Outward Request
(CFRC)
No. of Outward Request

(Card)
R&D for Innovation and Competitive Edge
Total Amount Sent by CFRC & CARD Division in 2011

and 2012 through BEFTN
160000
140000
100000
2011
2012
60000
20000
0
Total Amount (Crore),
CFRC
Total Amount (Crore),

CARD
Internet banking Altitude is also linked with BEFTN which

has got a very special attraction to the customers from the
beginning.
To ensure greater access of the unbanked population in the
far-flung areas, PBL launched Biometric Smart technology
based Prime Cash card through which common people/
beneficiaries can withdraw the hard earned remittances
of the expatriates from more than 500 Prime Cash agent
locations across the country. Besides, during the year PBL
activated its remittance distribution network of UDDIPAN,
a leading Micro Finance Institution of Bangladesh for
smooth delivery of inbound remittances received through
the exchange houses and banks including Western Union
Money Transfer from more than 200 outlets of UDDIPAN
throughout the country.
The customers were served efficiently by Centralized
Foreign Remittance Cell (CFRC) utilizing the RemitFast,
a software developed by in-house IT Team and
BEFTN. Mobile message system was introduced for
the beneficiaries guiding them to the nearest branches
for collection of remittance. PBL continued its effort to
encourage and motivate both remitters and beneficiaries
to use formal banking channel for money transfer from

abroad. The bank maintained close contact with remitters
in different countries. PBL provided two of its officials
to UAE on deputation for providing better and effective
services to the Bangladeshi expatriates living and working
in different parts of UAE. A number of officials of PBL
visited KSA and UAE to promote products of the bank
to the expatriates. PBL was the sponsor of Bangladesh
Night held in Qatar attended by a large number of
Bangladeshis working there. The bank also participated in
various fairs / campaigns in home and abroad (Qatar, KSA,
UAE, UK, Singapore and Malaysia) to create awareness
about remittance and promotion of selling wage earners
development bond and USD investment bonds arranged
by the Bangladesh Bank.
Banking industry constantly experiences ever changing

customer needs, intense pressure from competition,
adaptation and introduction of technological advancements
that facilitate customers in availing banking services. On top
of all priorities, identification and satisfaction of customer
needs are integral in sustaining profitable banking business
in this competitive and dynamic financial sector. To identify
customer needs and to implement strategies aimed at
satisfying those needs, a bank requires information about
customers preference, perception, and potential untapped
investment opportunities. Besides, as competition has
become more intense (48 scheduled banks having more
than 8,000 branches in the country, 9 more upcoming banks
and proliferation of NBFIs providing a number of financial
services similar to commercial banks), decision makers need
competitive intelligence and information on the effectiveness
of their strategies. The task of Research and Development
(R&D) Division of PBL is to provide the management of
the bank with relevant, authentic, reliable and actionable
information and analytical objective findings so that they
can make effective and time-befitting decisions. Besides, a
bank has to come up with new and innovative avenues of
products and services, explore potential markets in order to
strengthen its market position and make an upswing in its
growth cycle. This is where R&D Division plays a significant
role for gaining competitive advantage for the bank.
Hence, activities of R&D Division are of paramount

importance for the bank since it can come up with
concrete insights for supporting the higher management
to initiate customer-oriented strategic decision for growth
and expansion of business. In that pursuit, PBLs R&D
activities are focused on the three core areas- Market
Research, Operations Research and Economic and
Business Policy Research. 2012 was an eventful year for
R&D as it continuously monitored the market to predict
changes and came up with studies, products and services
to contribute to the banks growth.
Operations Research
Feasibility Studies for Branch Expansion Program
(BEP) and ATM: To explore potential markets where
the bank can provide its services to contribute to the
economic development of the area, feasibility studies have
been conducted on more than 150 locations all over the
country for new branch expansion and business growth.
To strengthen the alternative delivery of banking services,
feasibility studies for ATM expansion program have been
undertaken all over Bangladesh.
151
130
140
163
Branch Expansion Program (BEP) Vision
Some major activities performed by the R&D Division in

2012 are highlighted below:
Market Research
Product Development and Reengineering: R&D
Division introduced some innovative products such
as My First Account (Savings Account for school &
college students), Lakshma Puron Savings Scheme
(conventional and Islamic banking), Account 150%
(conventional and Islamic banking), Carnival Loan
and Prodip SME Loan Product. More asset and liability
products are in the pipeline;
Product Re-engineering: The division also modified
features of existing products and services as per
market demand to attain and retain market share, for
example, revision of Double Benefit Deposit Scheme,
Monthly Benefit Deposit Scheme and Prime Millionaire
Deposit Scheme for conventional and Islamic banking;
Mystery Shopping- a Service Quality Assessment
Survey: To ensure service excellence at branch
level, Mystery Shopping Survey is an ongoing project
throughout the year. After the Benchmarking Study
and subsequent service quality survey, it was revealed
that PBLs level of quality customer service is above
the industry standard.
Business Policy Research

R&Ds monthly publication In-Focus achieved a
notable milestone as the Newsletter successfully
launched its first printed version with new concept,
layout and design along with its online version in
interactive manner. In-Focus has been moving
forward with specific focus on Bangladeshs economy
and finance, through providing its readers cutting edge
knowledge and information to remain updated on
national and international issues. Besides, a weekly
financial newsletter is being disseminated to provide
financial insights to valued readers on a weekly basis;
81.98
86.18
76.85
R&D provided information for availing different
2010
PBL BenchmarkC
2010
ompetitors Benchmark
2011
PBL Latest MS
corporate awards and seminars such as- DHL/Daily

Start Best Financial Institution Award, Positioning
Bangladesh, etc.;
Customer Care
Commodity Market Watch from national and global
perspective on eight commodities;
R&D played the role of knowledge partner on behalf

of PBL in the event of Positioning Bangladesh- an
international seminar for branding Bangladeshi business;
Budget Review for FY 2012-13 highlighting 20 sectors
such as RMG, Leather, Pharmaceuticals, EPZ, SME,
Tax, Duties etc;
Sectoral reports on Ready-Made Garments (RMG), BiCycle market, etc.
In coming years R&D is looking forward to working as a
Mato Eid Utshobe
Initiatives and loyalty programs carried throughout the

year 2012 which to keep credit card in forefront are grand
complete Knowledge Hub for the bank aligning its core
launching of Platinum Card through a gala night, issuing
difference.
network through signing merchant agreement with
Prompt Complaint Resolution System
based Islamic credit card- Hasanah Quard Credit Card,
processes with the banks strategic vision of making a
PBL continues to put in place an efficient customer

complaint resolution system to address customer
complaints as part of its customer care commitment. The
bank has set a maximum number of days for all customer
pre-paid hajj card for the pilgrims, enhancing business

Saadmusa and Mustofa Mart, introduction of Shariah
Shop n Win and Shop n Earn loyalty reward program,
signing memorandum of understanding with Japan Credit
Bureau (JCB), worlds 4th largest card issuer.
complaints to be acknowledged and resolved.

Listening to the Customer
PBL always remains active to ensure superior delivery
standards. PBL continues to enhance its customer
service delivery standards by gaining customer feedback
through customer survey and mystery customers.
Besides, a number of customer-get-together campaigns
were launched in 2012 to get customer feedback.
Gala Launching of Platinum Card
Creating Customer Awareness

The bank creates awareness among customers about
its different products and services through different
campaigns throughout the year.
License Agreement Signing with JCB
Customer Mela
During 2012, Retail Banking Division carried out different

promotional campaigns like Customer Mela, Retail
Fixed Deposit Mobilization Campaign, Festival Deposit
Mobilization Campaign, Lets Start Banking, AltitudeBeat the Q and Mato Eid Utshobe.
Shop n Win- An Exclusive Loyalty Program for Platinum

Cardholders
SME Loan for Tk 3.50 million was also disbursed to two

SME customers during the program.
Different awareness building programs for agriculture
loan were taken by PBL as below:
Issuing Prime Hajj Pre-paid Card
Banker-customer dialogues for development of SMEs were

held at rural areas as a part of regulatory compliance and
cluster development policy directives of the Bangladesh
Bank. The dialogues gave the bank opportunity to find out
new SME customers including women entrepreneurs and
finally expanding the SME activities.
Meeting with the field level farmers at Chapai Nawabgonj
A Customer Caring Bank

PBL, as a caring corporate citizen, and in line with the
policies of the Government and the Bangladesh Bank of
advocating care for the underprivileged people, senior
citizens and mass people, continues to provide special
products and services as follow:
Bank-Customer Gathering for development of SMEs organized
by Sherpur SME/Agri branch of PBL
PBL has Senior Citizen Schemes designed for the senior

citizens of the country. As per the scheme 0.25 percent
higher rate of interest is provided to the eligible depositors
of the bank.
The bank identifies all of its Islamic banking activities by
adopting a generic name Hasanah- the brand name for
Islamic products and services of the bank which cater to the
needs of customers who want to have services in Islamic
Shariah compliant modes supporting the sentiment of
people, majority of whom are Muslims and are akin to the
Islamic financial system. The Islamic banking activities of
the bank along with its IT based products and services
and increased agricultural lending activities are bringing
Sanctioning loan to a entrepreneur in a Bank-Customer

Gathering organized by Sherpur SME/Agri. branch of PBL
in more and more un-banked and under-banked people

under the banking umbrella of PBL.
Customer Care
Md. Abul Kashem, the story of a successful farmer

I, Md. Abul Kashem is a small holder farmer in Dorbarpur, Ramdubi Sadar,Dinajpur. For many years
I grew potato, maize, banana, paddy, etc by availing loan from money lenders with higher interest for
maintaining the operational costs i.e. seed, fertilizer, pesticides, irrigation, labour cost, land rent etc.
I did not have enough money and land as well to cultivate potato, maize, banana, paddy, green chili
etc. commercially. But I knew how to cultivate quality crop commercially. To cultivate quality crops,
quality seed, fertilizer, pesticides, labour and adequate irrigation facility is needed in time. As I did
not have enough money, I had to go to the doors of shop keepers, money lenders to borrow money,
as well as purchase seed, fertilizer, pesticides etc. on credit but could not manage from any where in
time. Rather was hurt, humiliated and criticized.
Meanwhile, I came to know about the Agriculture Credit program of Prime Bank Limited. I became
inspired and decided to start farming of potato, maize, banana, paddy, etc. commercially. Next week, I
went to Prime Bank Limited for availing Agriculture Loan to cultivate potato. Afterwards, the Agriculture
Credit Officer of Prime Bank came to my house and visited my crops field and discussed with me, my
spouse and other group members.
I took 1st Crop Loan by forming a group of Tk 100,000 for potato cultivation in the year 2009 and
repaid the loan in time after harvesting and subsequently availed another loan of Tk 50,000 for maize
cultivation in March 2010. I again availed Crops loan of Tk 120,000 for potato cultivation in September,
2010 and Tk 140,000 for banana cultivation in November, 2010. Similarly, in 2011 I had availed crops
loan of Tk 120,000 for potato cultivation and Tk 75,000 for maize cultivation. In 2012, I availed crops
loan of Tk.120,000 for potato cultivation and Tk 50,000 for maize cultivation. I repaid all the loans in
time. So, comparing last few years I succeeded to make profit. Before availing loan, we had to repay
the Money lenders /Mohajans selling the product in lower price. But this year we had an opportunity
to sell the products storing for few months and thereby got optimum price of products.
I was not well off when I availed a loan for the first time from Prime Bank Limited. I was in vicious
cycle of poverty, could not maintain the educational cost of the children, and could not maintain the
household cost. My house was made of bamboo fence, tin etc. Now, my living standard has improved
significantly and I am living in a brick built house. Besides, my children are going to top class standard
school. Clothing is better than before and at a glance money crisis is far away. Today, solvency and
happiness have taken place in my family. Potato, banana, green chili of my garden is representing
me in Dhaka and Bogra. I am selling my products at fair price. All these became possible with the
help of Prime Bank Limited. I expect the Agri-finance activities of Prime Bank Limited will continue to
support farmers like us.
I wish every success of Prime Bank Limited.
A Self Explanatory Statement of a Physically Disable Business Person

I, Md. Shamsul Alam, Proprietor of Borni Handicraft of Hazi Boshir Uddin Market, Mouchak,
Siddirgonj, Narayangonj. I started a handicraft business in very small scale in 1995 and till
now running the business very successfully.
I contacted different banks for taking loan for expansion of my business but could not
manage anywhere as I am a physically disable business entrepreneur. In this situation,
SME Banking Division of Prime Bank Limited offered me a loan for expansion of my
business. In 2010, I had enjoyed a SME loan of Tk 400,000 from Prime Bank Limited and
successfully paid the entire loan amount with interest in time. Again I have been enjoying
another SME loan of Tk 400,000 from Prime Bank Limited since 2012.
Hogla trees those are grown in the bank of rivers are used as main raw materials of my
business. From those raw materials I make different types of Basket, Paper Box, Flower
Basket, Flower Vase and different types of home decorators. These finished products are
sold in locally as well as in abroad through NGOs.
I am feeling so proud to have such kinds of business by generating employment of 25
persons both male and female. This year, profit was more than that of previous year and
became able to improve the life standard of my family. I give special thanks to Prime Bank
Limited who is beside me as a helping friend since 2010 to make easy my way to the
progression of my business.
Customer Services at
Prime Bank
Products
and Services
Products
and Services
pathway to achievements ...

CEOs Go over
Prime Bank Foundation, over the last few years has grown
to become one of Bangladeshs leading banking sectors
foundations, not only in terms of benefaction, but also in
terms of the goodwill that its target people have bestowed
on us. The Foundation reflects the essence of what we
have always believed in, which is the well-being of its
priority target groups and beneficiaries.
Prime Bank Foundation is a foundation with a wealth of
ability and powerful assets e.g. wonderful innovation
capabilities, a country wide footprint and leading position
in demand and supply side financing in education and
healthcare. We have tremendous potential in terms of
sustained growth and as such have been trying to step up
every year to deliver fully on that potential. This is our 6th
CSR report, which builds on our experience publishing
annual CSR reports from 2007. The year gone by has
seen the expansion of CSR activities across the country
which will cater to the needs of our target communities
and beneficiaries. The year gone by has seen a range of
impact created by our CSR activities. It is our belief that
our CSR Report 2012 is well-heeled in brainwaves,
triumphs and hopes.
The journey has been eventful. Each day has taken us a
step forward towards perfection. However, the fulcrum of
any successful service organisation is its people. Today, I
can proudly proclaim, that the goodwill the Foundation has
earned, is largely due to the professionals who man our
Foundation and its projects. Our strong internal growth
has been further augmented by their passion to deliver
quality service, their unquestioning loyalty, their
dedication, proficiency and wonderful proactive approach.
As the voices captured in this annual report suggest,
inherent in the work to create pathways to success for
target group of beneficiaries are exhilarating
opportunities: to generate new insights; to strengthen
existing programmes/projects and develop new ones; to
inspire creative new approaches; to benefit from
knowledge shared. We will work to leverage all of these
opportunities as we move into 2013.
The theme of this annual CSR report, Achievements
Pathway also reflects the organisational evolution that is
producing these changes. It presents a high-altitude view of
what we have learned and are learning about creating
pathways to success, including what we have learned and
are learning about ourselves, our communities, our shared
beliefs and our relationships. And it presents that view
through the eyes of the members of the community that we
work for. In doing so, it mirrors our conviction that the most
effective pathway is that created in and by the community.
Of course, an annual report is necessarily a snapshot, not
a complete portrait. While this report includes sample lists
of the case studies made during the year, it cannot begin
to detail the full range of internal and external efforts on
which we have worked.
Being a leading economic establishment, Prime Banks
interest and focus are not limited to only making profit, but
they also extend to enhancing the contribution towards the
national development process through development of the

society. Further, this social responsibility is not limited to
today's society, but its services also extend to take into
account future generations on the long term.
We have always believed that our programmes designed to
tailor to the needs of our priority target beneficiaries create
opportunities for them to translate their dreams into reality.
This belief continues to propel us towards new initiatives
and new targets so we can impact the lives of many across
the country.
I am sincerely grateful to the Foundation Management
Committee, its Executive Committee and Prime Bank Board
of Directors, staff and partners for having the fortitude to
stay dedicated to our mission. I also appreciate the support
we have received from the entire priority target beneficiary
and community for the period of our work. As we go forward
in 2013 and beyond, we will make a more rigorous effort to
be a stronger voice of hope, a beacon of light and an
institution that is dedicated to uplifting the areas of our work.
The staff works particularly hard to achieve programmatic
goals. They exhibit humility that spurs upward mobility for
indigent families, while administering outstanding services
to our clientele with professionalism, technical knowledge
and care.
Before I conclude, I extend my heartfelt thanks to you for
taking time to go over our activities this year and for sharing
with us a sense of optimism for what we make possible. As
this report demonstrates, we continue to make important
and exciting changes and look forward to updating you on
further progress in the years to come.
Sincerely yours,
Dr. Iqbal Anwar

Chief Executive Officer
annual report 2012 169
Some endeavours are too valuable to be measured financially. Though being able to
improve the opportunities and livelihoods of those in need is priceless, we believe in
empowerment more than aid. Our groundbreaking social programmes enhance the health,
educational opportunities and cultural participation for the marginalised, but more than that,
they lay the foundation for continuous development that extends beyond our beneficiaries.
By contributing to development in Bangladesh in the areas of education, health and more,
Prime Bank Foundation is investing in brighter future.
Prime Bank Foundation has always been playing an imperative role in the social life of Bangladesh throughout its course
of compassionate operation, during which the Foundation has placed its resources and capabilities engaging in a range of
activities that are benefiting its priority target people of the country over the past six years.
Education Support Programme (ESP)

An initiative designed to support higher studies and improve employment prospects, the ESP project is a long term
renewable scholarship programme for underprivileged but meritorious students from across the country intended to
remove barriers to accessing higher education.
Prime Campus (PC)

Prime Campus is an English medium school started and run by PBF. Prime Campus is designed not only to make high
quality English based primary education more accessible for the financially constrained, but is intended to serve as a model
to introduce holistic education and innovative teaching methods, with a view of eventually further spreading this new
approach to schooling.
Prime Bank Nursing Institute (PBNI)

Prime Bank Nursing Institute provides high quality nursing education at affordable prices, both to increase employment
opportunities for its beneficiaries, and also to contribute to the development of the health sector in Bangladesh. Partnered
with a leading nursing institute from the Philippines, PBNI utilises modern equipment and state-of-the-art teaching methods
to produce highly skilled, capable, and compassionate graduates.
Prime Bank Eye Hospital (PBEH)

Designed to address the pressing needs for eye care and ophthalmic health in Bangladesh, Prime Bank Eye Hospital
provides a wide range of treatment for those that cannot afford this care from elsewhere. Beyond operating a hospital in
the capital, PBEH also has a mission to promote health seeking behaviour and early detection and prevention, by running
screening camps across the country.
Prime Bank Cricket Club (PBCC)

Prime Bank has long been a patron of culture in Bangladesh, having sponsored sporting events over many years. Prime
Bank Cricket Club takes this a step further, by recognising the contribution athletics make in the character and social
development. PBCC provides beneficiaries the opportunity to experience the life of a professional athlete, with plans
underway for the development of a cutting edge training centre and coaching programme.
Other Activities
In addition to the ongoing core projects mentioned above, Prime Bank Foundation is also involved in numerous other
activities to support pressing social and emergency needs in the country.
ESP Press Ad of Last
Years
Brief Information on ESP

S/L
Category of Information
Information of Awardess by Year

2007
2008
2009
2010
2011
2012
Applications Received
2,985
1,753
4,774
3,651
4,371
9,987
Applications found Valid
2,542
1,478
4,387
3,515
3,979
9,570
Finally Selected Awardees
170
122
198
196
205
386
Selected Male Awardees
108
78
135
135
148
294
Selected Female Awardees
62
44
63
61
57
92
Awardees completed graduation
86
60
35
15
Awardees completed study
81
24
Education
Education Support Programme (ESP)
Education is possibly the single most important human development factor needed to develop not only an individual but
vital for the progress of the entire nation. The prospect to pursue higher education is an empowering and life changing
opportunity, and an invaluable tool for effecting social change. The youth of Bangladesh is extremely driven and
hardworking, and can achieve great things if given the chance. Prime Bank Foundations activities in the area of education
emphasise the view that empowerment is much more powerful than aid, and that view is reinforced year after year as the
programme continues to produce inspiring stories of individuals overcoming hardship and achieving success.
Prime Bank Foundations Education
Support Programme (ESP) is a long
term renewable scholarship programme
for underprivileged but meritorious
students from across the country
intended to remove barriers to accessing higher education. Under this
initiative, eligible students receive
monthly stipends that allow them to
pursue under-graduate, Graduate and
post-graduate level studies, giving them
the opportunity to break out of the cycle
of poverty, increase their sense of
self-worth, and fulfill their potential.
Rather than providing one time awards
for good performance, the programme
supports students in completing their
scholarly aspirations in order to allow
them to make real, meaningful and
lasting changes in their lives.Typical
applicants come from very humble
backgrounds, with household incomes
barely enough to meet their basic
needs. Beneficiaries of the Education
Support Programme develop skills that
make them eligible for better employment, benefiting not just themselves, but
allowing them to support families as
400
well. Perhaps the most compelling

outcome of the programme is in its
repeated demonstration that, if given the
opportunity, anyone can be successful
and improve their circumstances, even
those that are left behind by the conventional system.
The Education Support Programme was
launched in September 2007, with the
governor of Bangladesh Bank presenting the first installment of stipends to the
selected students. New sessions are
typically announced in national newspapers, as well as with the cooperation of
members of the education sector. A
three member Advisory Committee is
commissioned to develop neutral select
criteria and identify the most deserving
candidates. The amount paid out
monthly in stipends was set initially at
BDT 1500, but has since been raised to
BDT 2200. Students have used these
grants to pursue their higher education
in reputable local medical, engineering
and agricultural colleges, and national
universities, in a wide range of subjects
covering sciences, humanities, and
commerce.
Distribution of Awardees
by Batch (2007-2012)
The scope of the Education Support

Programme extends to supporting
gender equality, ensuring that a
sufficient number of both male and
female applicants receive assistance. In
addition, special consideration is made
for those from especially disadvantaged
backgrounds, such as the visually
impaired, those from extremely remote
areas, and others with special needs.
Prime Bank Foundation is committed to
ensuring the effectiveness of its activities, and PBF staff regularly visit institutions attended by the ESP beneficiaries.
The positive feedback from the
programme has come not only from the
students and their families, but is
echoed by the teachers, principals, and
others that see first-hand the impact
that it is having. Beyond just supporting
the right to education, Prime Bank
Foundation strives to foster a culture
that supports personal and community
development free from discrimination
based on socio-economic status, race,
or gender.
Awardees Information (2007-2012)

386
350
(112) 9%
300
(196) 15%
250
200
(15) 1%
198
170
196
205
(954) 75%
150
122
100
50
Completed Graduation 15% (196)

Stipend Receiving 75% (954)
2007
2008
2009
2010
2011
2012
Each batch begins in October each year
Completed Study 9% (112)

Drop-out 1% (15)
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Some Outstanding Performance

of ESP Awardees
Richerd Kisku
PBF-ID: 08-1-2
-088
6th position
Fine Art, DU
Syed Akram Ali

PBF-ID: 08-1-3-101
17th position
International Business, DU
Shamima Nasrin M
ukta
PBF-ID: 09-2-3-185
7th position
Accounting, CU
Some of our Awardees

Now in Job
Md. Selim Uddin

PBF-ID: 08-1-1-028
Quality Control Officer
AHZ Agro Industries
Nazma Zabin
PBF ID: 08-2-2-093
BCS Customs
Halim
Shakila -3-119
: 07-2
PBF-ID
ce
r, Finan
Lecture iversity
Un
Dhaka
n uddin
Md. Borha
7-1-1-019
PBF-ID: 0
iser
Merchand
rics
b
a
F
in Iris
ssain
Shaikh Farhad Ho
62
-0
-2
PBF-ID: 08-1
er
ffic
Asst. O
NCC Bank
in
MD. Azhar Udd
42
-1
-2
-1
07
PBF-ID:
te
ia
oc
ss
A
h
Researc
D
&
R
C
A
BR
Ms.Farhana Lokm
an
PBF-ID: 07-2-2-1
68
Assistant Judge
Shilpy Begum
PBF-ID: 07-2-2-169
Officer
BDS-71 News Agency
Distribution of ESP Awardees

by District & Division
Panchagarh
11
22
Thakurgaon
Lalmonirhat
Nilfamari
Number of ESP Awardees
14
19
38
Kurigram
Rangpur
Dinajpur
No ESP Awardees
55
Gaibandha
10
35
Jaipurhat
17
Sherpur
22
Naogaon
Rajshahi
Mymensingh
41
28
Nator
Sirajganj
14
Gazipur
Pabna
Chuadanga
24
Manikganj
20
Jhinaidaha
14
11
Narail
Madaripur
41
Shariatpur
Gopalganj
26
36
Pirojpur
Bagerhat
Khulna
16
2
Khagrachari
Lakshmipur
27
Comilla
Chandpur
5
Barisal
28
12
59
Munshiganj
13
Shatkhira
4
Faridpur
40
Maulvibazar
Brahmanbaria
Narayanganj
Dhaka
12
Magura
Jessore
26
Narsingdi
Rajbari
5
Habiganj
25
Kushtia
2
Meherpur
16
Kishoreganj
Tangail
34
32
13
Sylhet
38
63
19
17
Sunamganj
Netrokona
Jamalpur
Bogra
Chapai
Nawabganj
11
22
14
Noakhali
Feni
23
Rangamati
Jhalokati
77
Bhola
Patuakhali
14
13
11
Chittagong
Borguna
1
Bandarban
Cox's Bazar
Total number of awardees is 1277
Sl.
l #
l.
1
2
3
4
5
6
7
Divi
vis
vi
isio
i n
Barisal
Chittagong
Dhaka
Khulna
Rajshahi
Rangpur
Sylhet
Total
Awa
w rd
wa
rde
dees
98
266
259
185
230
202
37
1277
15
Snapshot on PBF & Its Projects
Frontal view of Prime Campus - Uttara building
Frontal view of Prime Campus - Mirpur building
Prime Campus: Palm And Banyan

some banyans, but the trees girth may extend as far as Rajshahi,
Sylhet, and even the Banderbans one day. The idea from the start
was to let the Prime Campus-Uttara model spread in Bangladesh.
Prime Campus-Uttara is a 2008 CSR initiative of Prime Bank Foundation designed to provide quality English medium schooling at
affordable rates. It is a uniquely organic project with immense growth
potential, small in its inception, but enormous when fully developed.
We might compare it to the palm
and banyan tree. The first four
and a half years have already
shown both
trees characteristic growth patterns-upward like
the palm and outward like the
banyan.
There are good reasons for PBFs

using the organic paradigm, instead of
beginning with the grown tree. A major
one is that we can benefit from and
build upon the experience and
knowledge gained in the previous
stages, both in vertical and horizontal
expansion. Each new class section,
level, and school has a foundation and
From two classes, Nursery and
model. For example, teachers of the
Kindergarten, in the first year, the
next highest level or at the newly
tree has grown to a height of
opened school have a group of
Standard 4, one new class level
colleagues experienced in teaching at
having been added each year.
Prime Campus who can answer
Since the school is using the
questions and give advice.
This
Cambridge O and A-Level
support
is
especially
important
Kindergarten Classroom at Prime Campus Uttara
curriculum, the potential upwards
because we use an interactive,
is another eight classes, to
child-centered pedagogy that is different from the traditional method
Standard 12, or twice its present height. Excelsior! From a total of 25
practiced in Bangladesh. Another example is that in starting a new
students in the first year, the tree has expanded to 235. There are
school more accurate enrollment projections for the opening year
now three sections each of Nursery and Kindergarten, with multiple
allows better planning. Nine teachers were recruited and trained for
sections in Class 1 (4) and Class 2 (2). In the current 2012-2013
the initial two classes at Prime Campus-Uttara in 2008, four for those
session the first branch, or, we should say, offshoot, has appeared:
at Mirpur in 2012.
Prime Campus-Mirpur. Like the parent trunk, it promises to grow up
To return to our comparison in closing, Prime Campus is still young
and out from its Nursery and Kindergarten class and small enrollment.
and developing, but it is a young palm and banyan.
The number of these offshoots may not reach the thousands, as with
Class
Class
Il
2011
2010
as
Cl
VI
ss
la
lV
as
IIl
Cl
Class
2013 2014
2012
ss
Cla
VII
2016
s
Cla
2017
2009
KG
Nursery
2018
2008
2019
Uttara
III
sV
2015
Class IX
ve
Le
O-
Class
el
ev
L
A-
2013
KG
Mirpu
r
2012
ry
rse
Nu
Prime Campus
Prime Bank Nursing Institute (PBNI)

long-term ventures of Prime Bank Foundation as a part of
its corporate social responsibility. It started from the
scratch i.e. from project conceptualisation through formal
launching of the project. The project activities are being
undertaken sequentially. In order to proceed with project,
necessary technical and management assistance are
solicited through long term partnership based on need and
a Memorandum of Understanding (MOU)
has already been signed with Cebu Normal
University, one of the centres of excellence
for nursing education in the Philippines to
have them as a technical assistance partner
for Prime Bank Nursing Institute, a new
creation of Prime Bank Foundation which
has been set in the reporting year aiming at
developing highly skilled nurses at an
affordable price needed to meet the increasingly high demand of competent nurses by
different healthcare service providers in the
country and beyond. Where cost is an
CEO, PBF with President 'Cebu
issue, nursing education is not out of reach.
In Bangladesh there are 51 governments and 19 NGO, and

private (for profit) registered nursing training institutes
(Source: Statistical Handbook of Bangladesh, BBS-2009).
Majority of them offer diploma nursing course and a few of
them offer four year long BSc nursing course. The country
presently has only about 66,717 hospital beds available in
the 2,519 hospitals of which 37,611 are in the government
hospitals and the rest 29,056 are in the
NGO and private (for profit) hospitals. The
entire country has a total of 22,803 registered nurses and they are working in all
those hospitals of country. Facilities at all
levels have inadequate number of appropriately trained nurses giving rise to a serious
threat to the quality of care being provided
to the patients of those huge number of
hospitals.
At present the total number of nurses who

are being awarded graduation/diploma from
all these nursing training institutes per year
Normal University'-Philippines
is 4600 which is meeting about 70% of the
The Institute is going to start its first academic
actual needs of the country. Rather the gap between the
session
2012-13
from the beginning of 2013 offering three
actual needs and the production per year is widening
year
Diploma-in-Nursing
Science & Midwifery course. The
day-by-day. Moreover the requirement for trained regiscourse
is
approved
by
Bangladesh
Nursing Council i.e. BNC.
tered nurse of the country will be more than double in 2020
as against 22803 in 2009/10. The numbers of nursing
Before giving approval, a four member Inspection Team
training institutes that are currently offering nursing training
from BNC visited the PBNI on November 04, 2012 to
(both Diploma and B. Sc. in Nursing) along with their
inspect how far the PBNI met up the BNC guidelines to
annual production capacity.
establish PBNI.
Prime Bank Nursing College/Institute is one of the new and
The Team Leader of BNC Inspection

Team sharing his suggestions
Partial view of PBNI Simulation Lab
A view of PBNI Computer Lab
Later, Graduation and Post-graduation courses will be incorporated in the near future step by step. In addition to that
special certificate courses will be provided for different professional/service-holders or non-professional by PBNI to popularise the nursing profession in the different strata of the community as a part of social movement.
Special Features of PBNI
State-of-the art Nursing Institute

Partnership with Cebu Normal University-Philippines for Technical and Management Assistance
Equipped with modern teaching aids, materials & equipment
Highly experienced, well-trained & dedicated Faculties
Interactive methodology for hands on learning
Lay a solid foundation in English Language
Special effort to make efficient in Computer & Internet uses
Highly visible & easily accessible location
Affordable fee structure with accessibility to all
Safe and Well furnished Female Hostel Facilities
Eventually, PBNI is established to build a bright future of new generation as an efficient manpower regarding nursing
profession in the country and aboard.
Health
Prime Bank Eye Hospital (PBEH)
PBEH
Prime Bank Eye Hospital (PBEH) was established to make high quality eye care
accessible to all, regardless of their financial condition. With eye-disease
pervasive across Bangladesh, countless poor and needy people throughout the
country suffer and lose their livelihoods to conditions that are readily treatable
and often preventable. Though the hallmark of PBEH is to provide treatment at
prices that everyone can afford, with many receiving free support, a core
principle of hospital is its financial self-sufficiency, based on successful social
business models. This is achieved through high quality, high volume care based
on a well-organised system. Aiming to meet the goals defined by the Vision
2020 initiative of the World Health Organisation, PBEH not only provides
treatment and surgery, but is also actively involved in raising awareness of and
generating demand for eye health in order to promote the prevention and control
of avoidable blindness across the country.
Prime Bank Eye Hospital
House # 82, Road # 8A, Satmasjid Road

Dhanmondi, Dhaka-1209
PBEH is unique because of a combination of several factors, including:

Pricing and Accessibility of Services:
Highly Skilled and Professional Team:
Pricing is designed to ensure accessible to all, with a

safety-net provision for those who cannot afford regular costs
Tailored to needs setup for different socio-economic strata
Pricing at a sliding scale for sustainability and
cross-subsidisation if needed
One-stop shoppingapproach to provide a wide range of
eye care services
An exceptional team of highly trained, dedicated and

caring staff, including physicians, management, and
others
A well-structured and functional organogram with
clearly defined responsibilities, ensuring accountability and results
Setup, Launch and Operation:

The launching of Prime Bank Eye Hospital in January 2012 was the outcome of several years of careful planning and meticulous work. Every stage of the process was guided by the hospitals founding vision: providing eye care that is not only affordable for all, but of the highest standard. Technical and management assistance has been secured from AECS (Aravind Eye
Care System, India) since 2010, after Prime Bank Foundation entered into an agreement with them for their guidance in the
establishment of a state-of-art eye hospital in Bangladesh. Following the signing of the MoU, Prime Bank Eye Hospital began
setting up its hospital at a site on Satmasjid Road Dhanmondi, Dhaka, where operations will continue until they are eventually
shifted to a purpose-built facility in Ashulia. Modern international grade equipment was procured,
checked and installed under supervision of renowned ophthalmologists. All other work, including hospital renovation and
human resource recruitment, was completed by the end of 2011, realising the goal of establishing PBEH as a cutting-edge
eye care centre. Finally, a distinguished team from AECS (comprised of Mr. R. D Thulasiraj, Mr. Nagarajan, Dr. AsimSil,
and Ms. Sashi Priya) visited the site on December 15, 2011, to oversee the progress and ensure every standard was
fulfilled.
2012 was a landmark year for Prime Bank Eye Hospital, not just because of its launch, but also the incredible response it
saw. PBEH was inaugurated on January 2012, at a ceremony attended by
numerous distinguished guests, including the Governor of Bangladesh
Bank, Board of Directors of Prime Bank Limited (PBL), and many others.
The hospital began actual operations on the 22nd of January 2012. In the
days since, several thousand beneficiaries have passed through PBEH,
where they have received life-changing treatment and care.
Promoting the newly established hospital was a key priority, and PBEH has
been proactively addressing this challenge with publicity campaigns in print
media (newspapers and magazines), PBL ATM booth branding, brochure
distribution, and other activities. The response has been remarkable, with
the number of treatment seekers increasing day by day.
Inauguration of PBEH by Dr. Atiur Rahman

Governor, Bangladesh Bank
In addition to operating its fixed facility in Dhaka, the PBEH project also has
a mission to promote early detection and prevention, and outreach to those
outside the capital, in order to address the pressing needs for eye care
across the country. In 2012, PBEH began implementing outreach camps
where cataract patients are identified, and later provided with surgery at
minimal cost.
One of PBEHs fundamental values is continuous progress and development. Accordingly, the Vision Building & Strategic PlanningWorkshop was
planned during an AECS team visit, for the purpose of defining longer term
goals and action plans. The workshop was held in May 2012 at LAICO,
AECS India. Various goals and strategies were discussed, covering
self-sustainability, conducting of outreach camps, recruitment of skilled HR,
promotion, and much more.
Vision Building & Strategic Planning

Workshop Participants From PBEH
Impact and Service Statistics:

Since inception, PBEH has provided 5,676 patients with eye care services at minimal cost. Of these, 147 patients underwent surgery and received aftercare treatment. The surgeries were performed by PBEHs proficient ophthalmologists,
whose diligent work meets the standards and requirements set by the World Health Organization (WHO).
After Surgery
Some complex
operations
performed
at Prime Bank
Eye Hospital
Before Surgery
In 2012, PBEH conducted 11 outreach camps, providing ophthalmic examinations to 2,750 patients. Among them, 93
patients were brought to the base hospital (PBEH) for surgery. About 700 patients received refraction services with
spectacles being dispensed to around 500 beneficiaries.
Outreach Camp to
Prime Bank Eye Hospital
Vision test at Camp
Patient Examination at Camp
Patient Examination at Camp
Camp patients are in queue for follow-up surgery
Camp patients are having dinner at PBEH cafeteria
Camp patients are at PBEH ward
Sports & Culture

Prime Bank Cricket Club (PBCC)
Social and cultural development is frequently overlooked in typical corporate social responsibility programmes, but Prime
Bank Foundation recognises the importance this plays in overall national development. Prime Bank Foundation
understands that sports are not just about recreation, but can play a major role for character development, and that the
cultural value of athletics can enrich society as a whole.
Prime bank has a long been a patron of culture in Bangladesh, having sponsored sporting events over many year. In 2011,
PBF went on to from the Prime Bank Cricket Club (PBCC), initially to offer club level players the opportunity to experience
the life of a professional cricket. This journey began with the acquisition of a Premier Division cricket team eligible to play
in Premier Division Cricket League of Bangladesh. Subsequent plans involve the development of an integrated cricket
development programme that will create a pathway for continued athletic progress for promising talents. In addition, PBF
also intends to be involve in general promotion and popularisation of cricket all over the country through various other
activities.
The modern sporting environment, especially in the world of cricket, has been growing increasingly competitive. PBFS
future plans include the establishment of a cutting edge Cricket Academy and coaching programme, to make available the highest
standard of coaching, fitness training, and overall development for budding cricketers. By taking on board some of the most exciting
names in Bangladesh cricket, and addressing shortcomings in issues of sports psychology and infrastructure, PBCC seeks to help
hopeful cricketers reach their full potentials.
Practice session of PBCC

Last match of Super league
with Victoria Sporting Club
Besides developing physical fitness, dedication towards athletic helps foster mental toughness and other important values,
including a competitive spirit, sportsmanship. leadership, determination, discipline, and overall personal development.
PBCC hopes not only to promote Bangladesh cricket on the world stage, but also to contribute in the development of more
rounded citizens.
Prime Bank has been sponsoring sports for more than a decade. This commitment for a range of sports and clubs make a
significant contribution to the sports and cultural life and enhance the attractiveness of our corporate roles.
The unique proposition of PBCC is that in 2011 we have formed a Cricket club in the name of Prime Bank Cricket Club
(PBCC) which played 1st time in the most prestigious Premier Cricket League organised by Bangladesh Cricket Board and
in the very first year we become third (3rd) in the point table, PBCC played the last super league match with Victoria
Sporting Club. They lost the last match in the super league and in the end of the League we are tie up with 24 points with
two other teams and become third (3rd) due to Head to Head law as per League by-laws.
Launching Ceremony of Prime Bank Cricket Club
PBCC played 11 matches in total the League stage and won 10 matches and in Super League stage we played 05 matches
and won 2 matches, out of 16 matches we won 12 matches.
PBCC organised a very gorgeous launching ceremony on 14th May, 2012 at the Pan Pacific Sonargaon Hotel being
graced by the presence of Mr. AHM Mustafa Kamal FCA, MP and President, Bangladesh Cricket Board as the Chief Guest.
The eye-catching launching being unique in the cricket arena in Bangladesh was attended by the Directors of Board of
Directors of Prime Bank Limited, its high officials and former National captains and players, BCB Directors, Club officials
from (Premier, 1st Division, 2nd Division and 3rd Division), former and current National coaches, umpires and a very handsome number of sports journalists from both electronic and print media.
Prime Bank South Zone

Team.
Signing of MOU with BCB
Bangladesh Cricket League

Prime Bank Foundation having interest in the game of cricket and sharing the vision of Bangladesh Cricket Boards (BCB),
a governing body to regulate and promote cricket in Bangladesh of developing and popularising the longer version of
cricket known as Franchise Based National Cricket League has acquired a Franchisee license for ten years from BCB to
own and operate Prime Bank South Zone, one of the teams of Franchisee Based National Cricket League to participate in
the longer version cricket on franchise basis under the control of the Franchisee and started operating the team for its first
year from 2012.
CSR contribution directly from Prime Bank Limited

for the period of January-December 2012
Education
Prime Bank sponsored top 3 students of BIBM for their excellent result
Sponsorship of Science Olympiad organized by Bangladesh Academy of Science
Sponsorship of Prime Bank-Dhaka College Science Expo 2012 organized by Dhaka College Science Club
Sponsorship of Alumni Night 2012 of BRAC University Alumni Association
Sponsorship of MBM Day and job Fair 2012 organized by Bangladesh Institute of Bank Management
Donation to Sirajul Ulum Arabia Madrasa
Donation of computer to Shipyard School and College, BN, Khulna
Sponsorship of Prime Bank-NDDC 24th National Debate Competition
Sponsorship of Inter University/school debate competition organized by London college of legal studies
Health
Donation to a good numbers of individuals for their Cardiac, Kidney, Cancer and other treatments
Sports
Sponsorship of Pallima Badminton Tournament

Sponsorship of Tennis Tournament-2012 organized by Naogaon Tennis Club
Sponsorship of Banskhali Shadhinota Gold Cup Football Tournament-2012
Sponsorship of Prime Bank 7th International Womens Tournament organized by Leonine Chess Club
Sponsorship of District and Divisional Football League organized by Bangladesh Football Federation
Sponsorship of Prime Bank 15th International Rating Chess Tournament organized by Leonine Chess Club
Sponsorship of Prime Bank Cup Golf Tournament at Kurmitola Golf Club
Sponsorship of Junior Golf Team of Kurmitola Golf Club for Junior Championship at England
Arts & Culture

Sponsorship of Bangla Academy Ekusha Book Fair 2012
Sponsorship of Seminar on history and tradition
Sponsorship of an Art exhibition of Sigma Haque
Prime Bank Kite Festival-2012
Sponsorship a cultural program organized by all community club
Sponsorship of Canada Showcase 2012 organized by Canadian Chamber of Commerce
Sponsorship of Jatio Rabindra Sangeet Sammilon
Sponsor 17th Anniversary of Chittagong Stock Exchange
Sponsorship International Bangla Festival & Book Fair 2012
Donation to Bangali New Year Celebration 1419 to News Presenters Society of Bangladesh
Printing and distribution of 5,000 pcs books written by Governor, Bangladesh Bank
Sponsorship a program of News Broadcasters Association of Bangladesh
Sponsorship to FBCCI for arranging seminar
Sponsorship of 1st National Inter School Freshers Champion debaters league, 2012
Sponsorship to Sandhani for Art competition
Sponsorship of Hirok Joyonti of Dhaka University
Sponsorship of Positioning Bangladesh, branding for business
Sponsorship of Bijoy Parbone Utshab
Sponsorship of 31st celebration of Dhaka Club
Sponsoring Bangla Darpan to pay lifelong honor to language activist Dr. Abdul Matin
Disaster Management
Prime Bank donated cheques to the families of two martyred army officers killed in BDR carnage at Pilkhana
Distribution of blankets to the winter distressed people
Donation for fire affected workers of Tazreen Garments
Others
Supported Desh TV to organize a programme on budget discussion
Donation to Proyash, an institute worked for betterment of Handicapped children, patronised by Bangladesh
Army
Sponsorship to Chittagong Boat Club to inaugurate the club house and passenger vessel
Setting public addressing system at Chittagong Mohila Samity school
Sponsoring marine academy for best cadet
Distributed 5 formalin de-hydrate machine to FBCCI
Jessore press club construction
Financial assistance to Bangladesh Bannya Prani Sheba Foundation
Three Strategic Goals

G oa l 1
G oa l 2
G oa l 3
Make
education
more
accessible to the target
population we work for
Make health more accessible

to the target population we
work for
Build a strong and dynamic

capable
of
organisation,
facilitating effective education,
eye and other components of
health programme, and having
positive impact on public
opinion, policies and practices.
Both access and quality in

education have been given
attention,
as
education
programmes continued to be
implemented.
Completed the set up of Prime

Bank Eye Hospital in Dhaka, a
well equipped eye hospital
staffed with skilled workforce
with the technical assistance
from Aravind Eye Care System
of India to provide a wide range
of eye care services to all.
Our
capacity
development
endeavour, is envisioned to
institutionalise
learning
processes and systematically
organise sharing of information,
experiences, best practices and
lessons learned with our project
level people and the organisation
to we work partner with. We aim
institutionalise the core values of
responsible corporate citizenship
into the way of doing business, to
mould future business and to
professionalise the practice of
CSR. Monitored, measured and
report on the impact of the work
that we do
Sizeable
increase
of
our
programme reach in all 64
districts of the country including
the very hard-to- reach areas
through ESP, a programme to
respond to the needs of the
grad/undergrad/ post-grad level
underprivileged but meritorious
students of the country.
Availability of low cost quality
education to a much bigger
number of children through
Prime Campus, Uttara and its
new branch at Mirpur.
Signing of an MOU with Cebu
Normal University, one of
the centres of excellence for
nursing education in
the
Philippines to have them as
a technical assistance partner
for Prime Bank Nursing Institute,
a new initiative of Prime Bank
Foundation which has been set
in the reporting year aiming at
developing highly skilled nurses
at an affordable price needed
to meet the increasingly high
demand of nurses by different
healthcare
service providers
in the country and beyond.
The Institute will start its first
academic session from the
beginning of 2013 offering
three year diploma course in
nursing.
Where cost is an issue, eye care

is not out of reach. Prime Bank
Eye Hospital, an initiative of
Prime Bank Foundation, from the
beginning of 2012, has started
providing high quality eye care
services as part of its Corporate
Social Responsibility
Implemented information sharing

and communication sharing and
communication systems to link
our people and programmes
Increased efficiency in managing
organisational resources
Continued building capacity of
project staff and systems to
support our target people
Financial Reports 2012
Directors Report
Auditors Report to the Shareholders
Financial Statements - Group & PBL
Financial Statements - OBU
Financial Statements - PBIL
Financial Statements - PBSL
Financial Statements - PECL, Singapore
Financial Statements - PBL Exchange (UK) Ltd.
Financial Statements - PBL Finance (Hong Kong) Ltd.
Calendar of Significant Events
Notice of the 17th Annual General Meeting
Branch Network
Glossary
Directors Report-2012
(Under Section 184 of Companies Act 1994)
The Board of Directors of Prime Bank Limited has the
pleasure of presenting the 18th Annual Report and Audited
Financial Statements for the year 2012 together with the
Report of the Auditors to the shareholders. A brief overview
of the world market trend with the performance of Bangladesh Economy has also been provided in this Report. A
review of this report would reveal continuous growth of the
bank in a stiff competitive environment.
Global Economy
The World Bank estimated the global GDP to grow by 2.3
percent in 2012 (2.5 percent estimated by the IMF). The
world economy continued to struggle four years after the
onset of the global financial crisis. Developing economies
were still the main driver of global growth. GDP growth in
Euro area is estimated to be scaled down in 2013. Data for
the fourth quarter on US economy suggest that it too will be
weak despite improving retail sales, housing markets, and
employment. GDP growth for East Asia and the Pacific
region is projected to slow to 7.5 percent in 2012 largely on
account of weak external demand and policy actions in
China directed towards moderating domestic demand and
controlling inflation. Going forward, GDP growth in the
region is projected to accelerate to 7.9 percent in 2013.
South Asia's growth weakened to 5.4 percent in 2012,
mainly reflecting a sharp slowdown in India. The regions
GDP is projected to rise to 5.7 percent in 2013 and 6.4
percent in 2014, helped by policy reforms in India, stronger
investment activity, and a gradual improvement in global
demand for South Asias exports. Migrant remittances in
particular from the oil-rich Gulf Cooperation Council (GCC)
countries are projected to remain resilient and support
domestic demand in Nepal, Bangladesh and Pakistan.
Details on global economy are given in Management
Discussion and Analysis chapter of this Annual Report.
Bangladesh Economy
Despite the global economic downturn, the Bangladesh
economy achieved an impressive growth of 6.3 percent
during FY12. A strong demand and continued expansion of
infrastructural facilities helped to accomplish this accelerated economic growth amidst the fragile pace of global
economic recovery. The expansion of the economy during
FY12 was broad-based, registering positive growth by all
sectors and sub-sectors of the economy.
The monetary policy remained accommodative for productive economic activities with growth supportive financial
inclusion promotion measures in credit policies while also
firmly discouraging diversion and undue expansion of bank
credit for wasteful unproductive uses to stem build-up of
inflationary pressures.
Banking sector of Bangladesh showed remarkable

resilience in FY12. With a view to fostering a sound,
efficient and stable financial system, the Bangladesh Bank
began implementing a number of important policy measures. These included forceful emphasis on undertaking
timely and effective risk management practices by banks
through the revised Risk Management Guidelines. The
Bangladesh Bank issued new guidelines for loan classification on provisioning for banks which came into effect from
the last quarter of 2012. This guideline increased the
amount of non-performing loans and provision requirements for banks but in the long run it will elevate the banking practices to the best norms in the world.
The Bangladesh Bank has downgraded the GDP growth
forecast for FY13 to 6.2 percent from earlier projection of
7.2 percent. The World Bank in its report on Global
Economic Prospects (January 2013) has also forecasted
GDP growth of Bangladesh to 5.8 percent in FY13 and 6.2
percent in FY14. IMF in its World Economic Outlook
Update (January 2013) has also forecasted GDP growth of
Bangladesh to be 6.0 percent in FY13. Details on Bangladesh economy are given in Management Discussion and
Analysis chapter of this Annual Report.
Performance of PBL
Despite the challenges, PBL was able to record progress in
all most all the areas of operation in 2012. The bank maintained satisfactory growth of asset and liabilities. Trade
finance and other ancillary businesses recorded considerable growth as per the prevailing economic scenario. The
bank further expanded its branch network and alternate
delivery channels. New IT based products and services
were introduced. Regulatory changes like new loan classification and provisioning policy had an impact on net profit
after provision and non-performing loan ratio. However,
these changes will help the bank to cope up with the
worlds best practices. A detailed financial analysis on
performance of PBL is given in the last part of this chapter.
Business Review
Vision, Mission, Corporate Philosophy, Strategic Priorities
and Corporate Conduct
PBLs vision, mission, corporate philosophy, strategic
priorities and corporate conduct are given in the beginning
of the report. In achieving banks vision, mission and strategic priorities, the highest level of ethical standards are
maintained.
Brief History of PBL
PBL started its journey in the year 1995 with the firm
commitment of excellence customer service with a
difference. Its vision remained to be the best private
commercial bank in Bangladesh in terms of efficiency,
capital adequacy, asset quality, sound management and

profitability having strong liquidity. Having recorded progress
in all areas PBL has now established itself as the leading and
strongest of private commercial banks in Bangladesh.
PBL formally launched its business in April 1995 with one
branch at Motijheel Commercial Area, Dhaka. It started its
Islamic banking operations in December of the same year.
It was listed with both the bourses of Bangladesh viz.
Chittagong Stock Exchange and Dhaka Stock Exchange in
1999 and 2000 through initial public offering.
PBL became primary dealer for buying and selling securities
under the license issued by Bangladesh Bank in 2003.
With the aim to offer innovative banking service to the Non
Resident customers, PBL opened its first Offshore Banking
unit in 2007 at DEPZ, Savar, a new dimension in its
customer friendly business activities. The bank opened two
more Offshore Banking Units at CEPZ, Chittagong and
Adamjee EPZ, Narayangonj.
It was registered as Merchant Banker with the Bangladesh
Securities and Exchange Commission, Bangladesh in 2001
for starting its Investment Banking and Advisory services.
As per directives of the Bangladesh Bank, PBL converted
its Merchant Banking and Investment Division (MBID) into a
subsidiary in the name and style "Prime Bank Investment
Ltd." in 2010. With the view of business diversification in
mind, the bank also established another subsidiary
company in the name and style "Prime Bank Securities
Ltd." to provide brokerage services in the stock market.
PBL has also expanded its services cross border with a
view to providing banking services globally. It opened its
first fully owned subsidiary- Prime Exchange Co. Pte Ltd. in
Singapore, which started its operation in 2006 to offer
remittance service to Bangladeshi Nationals living in
Singapore. This is the first ever fully owned Exchange
Company of a Private Sector Bank of Bangladesh
established in Singapore with the approval of the
Bangladesh Bank and the Monetary Authority of
Singapore.
With permission from the Bangladesh Bank and registration
of Financial Services Authority, UK, another fully owned
subsidiary of PBL, Prime Exchange (UK) Limited, started its
operation from August 2010 in the UK along with its three
branches in London, Birmingham and Manchester. The
company is engaged in remittance business.
PBL Finance (Hong Kong) Limited, a fully owned
subsidiary of PBL started its operation in 2011. The main
functions of the subsidiary are to advise, negotiate, confirm
and provide discounting facilities against LCs originating
from PBL and other banks in Bangladesh. The company
also handles remittance business.
At present, the bank has been working with 130 branches

including 17 SME branches. The introduction and
expansion of ATM network, Internet Banking, SMS
Banking, Phone Banking, Mobile Banking, Biometric Smart
Card and KIOSK ushered a new era and PBL is now well
poised towards sustainable development.
Principal Activities
The principal activities of the bank are banking and related
businesses. The banking businesses include deposits
taking, cash withdrawal, extending credit to corporate
organizations, organizing syndication deals, retail and
SME financing, trade financing, project financing, lease
and hire purchase financing, credit cards, remittance
services etc. The mode of banking includes conventional
and Islamic banking. The services are provided through
both traditional and modern IT based products. The bank
performs investment banking and advisory services
through Prime Bank Investment Limited and brokerage
services through Prime Bank Securities Limited. Banks
subsidiaries at Singapore and UK are engaged in providing
remittances faculties to expatriate Bangladeshis. PBL
Finance (Hong Kong) Limited advises, negotiates,
confirms and provides discounting facilities against LCs
originating from PBL and other banks in Bangladesh. The
company also handles remittance business. 3 (three)
Off-shore Banking Units offers banking services involving
foreign currency denominated assets and liabilities.
Strategy
The strategic priorities and actions plans as stated in the
banks Strategic Plan (2012-2014) are mentioned below:
Maintain strong capital base by expediting borrowers
rating, concentrating on lending portfolio having lower
capital charge, strengthening Internal Capital
Adequacy Assessment Process (ICAAP).
Continuation of diversification of credit portfolio in
corporate exposure, emphasize on retail, SME and
agricultural loan, address gender issue by providing
loans to women entrepreneurs in SME segment and
emphasize on geographical diversification.
Improvement of deposit mix by maintaining efficient
deposit mix, increase share of low cost and no cost
deposit in total deposit, increase non-funded business.
Maintain adequate level of liquidity through minimizing
asset-liability mismatch and recovery of past due loans.
Diversification of products and services by introducing
IT based innovative products and alternate delivery
channels.
Increase share of inward remittance by expansion of
existing exchange houses, opening of new exchange

houses, increase in domestic network for the
beneficiaries through strategic alliance, development of
new products for the NRBs.
Increase non-funded (non-interest fee based) income.
Extend banking services to un-banked and under
banked people for inclusive growth.
Innovative approach in dealing with complex and large
transactions / fund requirements with strategic alliance.
Improve internal governance through strengthening
good corporate cultures, motivation, training and
supervision as per KPIs in all levels of management.
Strengthening internal control and monitoring.
Conduct BPR (Business Process Re-engineering) in
different functional areas to improve efficiency and
bring in required structural change.
Improvement of IT infrastructure in order to develop new
IT based products and services.
Integrated marketing effort by creating a

customer-orientated culture, Brand archaeology study
(in-depth research for brand strategy development),
Brand Repositioning and extensive marketing for
branding Hasanah.
Development in Human Resources Management

System to motivate and retain the Human Resources
and transform Human Resources to Human Capital
through proper training in every aspects of working
area.
Cost optimization at all levels of operation by ensuring
budgetary control.
Expansion of activities related to Corporate Social
Responsibility and Green Banking.
The bank has been working as per the above stated Strategic
Plan and a lot of developments have taken place which are
emphasized in different chapters of this Annual Report.
Review of Operations, Products and Services of PBL
Review of operations along with products and services of
the bank has been given in Management Discussion and
Analysis, Customer Care and other chapters of this
report.
Offshore Banking
PBL has been offering Offshore Banking facilities through
3 (three) Offshore Banking Units (OBU) located in Dhaka
Export Processing Zone (DEPZ), Chittagong Export
Processing Zone (CEPZ) and Adamjee Export Processing
Zone (AEPZ). The total loans and advances of three OBUs

reached to USD 61.30 million equivalent to Tk 4,895 million
as on December 31, 2012 compared to USD 42.40 million
equivalent to Tk 3,470 million as on December 30, 2011
recording a growth of 41 percent. During the year 2012,
OBUs made operating profit of USD 1.84 million equivalent
to Tk 150.32 million as against USD 1.57 million equivalent
to Tk 119.50 million in 2011 with a growth of 26 percent.
PBL was registered as Merchant Banker with the
Bangladesh in 2001 for starting its Investment Banking and
Advisory services. As per directives of the Bangladesh
Bank, PBL converted its Merchant Banking and Investment
Division (MBID) into a subsidiary in the name and style
"Prime Bank Investment Ltd." in 2010. During the year
"Prime Bank Securities Ltd." was established to provide
brokerage services in the stock market. During the year
The company operates with two branches in Desker Road
and Jurong East complying with the regulations of both
Bangladesh Bank and Monetary Authority of Singapore
(MAS). Growth in business of the company was possible
due to marketing efforts, personalized service, efficient
service platform under RemitFast software and enhanced
distribution network. The company significantly expanded
business in 2012. Total volume of remittance was SGD
82.56 million in 2012 compared to SGD 46.86 million in
2011, showing growth of 76.18 percent. The company
made profit before tax of SGD 141,836 in 2012 compared
to SGD 104,427 in 2011 recording a growth of 36 percent.
The company started remittance business through Sonali
Bank Limited in 2012 which is in addition to existing
arrangement with Pubali Bank Limited. This has expanded
the remittance network at domestic market. The
Bangladesh Bank has approved opening of third branch for
which approval of MAS is sought and under process.
Arrangement for remittance of Non-Resident Indians
(NRIs) through HDFC Bank, a reputed bank in India, has
been finalized in 2012.
The company has been operating with three branches in
London, Birmingham and Manchester. The business
volume has marked growth despite stiff competition.
Pictures of Some PBL financed SME Projects
A light engineering firm
Manufacturer of kacher churi
A rice mill
A women entrepreneur in handicraft business
A weaving factory
A rubber factory
Pictures of Some PBL financed Projects on Agriculture
Khamar (Farm Loan): Financing for Fish Culture at

Mymensingh
Abad (Crop Loan): Financing for Potato Cultivation at

Dinajpur
Abad (Crop Loan): Financing for Banana Cultivation at

Dinajpur
Nabanna RIN: Financing in the Mango Garden availed great

success at Chapai Nawabgonj
Khamar Loan: Financing in the Dairy Farm.
Khamar Loan: Financing in the Poultry Layer
Pictures of some PBL Financed Projects
Saidpur to Chillahati Railway project
Teesta Bridge, Rangpur
Repairing of the existing bituminous overlay

at Hazrat Shahjalal International Airport, Dhaka
Under construction of School cum Cyclone

Center at Shoronkhola, Bagerhat
The volume of remittance was GBP 19.79 million in 2012

which was 55 percent higher than GBP 12.77 million in
2011. The company incurred operating loss of GBP 115,788
in 2012 compared to operating loss of GBP 150,090 in 2011.
The subsidiary has taken some pragmatic steps for further
acceleration of business growth. If implemented, the
Company is expected to reach a better position in 2013.
Total assets of the company reached to HKD 119.68
million as on December 31, 2012 compared to HKD 56.29
million on December 31, 2011. The company made a net
profit after tax of HKD 4.32 million in 2012 compared to
HKD 3.15 million in 2011. The main functions of the
subsidiary are to advise, negotiate, confirm and provide
discounting facilities against LCs originating from PBL and
other Bangladeshi Banks. The company also handles
remittance business. The company has been run by
executive and officials having diverse experience in foreign
trade business both in Hong Kong and Bangladesh.
Risk Management
PBL has always being in the forefront of implementing
different risk management tools and techniques. The Risk
of any banking institution may be defined as the possibility
of incurring losses, financial or otherwise. Banking business
is in fact a business of risk taking. So it is vital to manage all
these risks efficiently. In todays challenging financial and
economic environment effective risk management is must
for sustainable growth in shareholders value. In banking
arena, key risks include credit, market, operational, liquidity,
reputation risk and other risks like strategic risk,
concentration risk, compliance risk etc. The risk
management strategy of PBL is based on a clear
Details of risk management are given in the Risk
Management Chapter of this Annual Report.
capital fund of the bank increased by Tk 1,687 million and

stood at Tk 25,916 million during 2012. Tier-I capital grew by
Tk 1,920 million and stood at Tk 20,664 million during the
year under review. Total consolidated capital fund is
equivalent to 12.64 percent of total risk weighted assets.
More details regarding capital management are given in the
Market Discipline- Disclosures on Risk Based Capital
(Basel-II) chapter of this Annual Report.
Human Resources
PBL is working with a vision of converting human
resources into human capital through appropriate
knowledge, skills, abilities and personal attribution. A
healthy environment has been created where employees
enjoy working with pride. Believing that the human
resources are main elements behind the success and
future sustainability of the bank, the bank is developing and
motivating the workforce with contemporary HR policies
and attractive benefits. The bank is not only offering a job
but also a learning, challenging and rewarding career.
Details of HR related activities are given in Sustainability
Report chapter of this Annual Report.
Corporate Sustainability
In respect of corporate sustainability, PBL has focused on
following specific key areas namely, nation building,
enhancement of market place, promotion of the work
place, support to the community and protection of
environment. PBL established Prime Bank Foundation
and contributes equal to 4 percent of net profit before tax
(Tk 213.41 million in 2012) as donation to this foundation
for undertaking projects in health and education sector.
Details of activities of the foundation are given in Prime
Bank Foundation chapter in this report). Apart from the
CSR activities taken by Prime Bank Foundation, the bank
conducted various CSR activities during the year 2012,
details of which are given in Sustainability Report and
Green Banking chapters of this Annual Report.
Capital Management
Capital management of the bank is based on the objective

to maintain an adequate capital base to support the
projected business and regulatory requirement. This is
done by drawing an annual planned business growth
vis--vis capital requirement. PBL recognizes the impact of
shareholders returns on the level of equity and seeks to
maintain a prudent balance between Tier-I and Tier-II
capital. As per directives of the Bangladesh Bank, the
banks are required to maintain capital at 10.00 percent of
risk-weighted assets under Basel-II. Tier-I capital should
be minimum 5 percent of total capital.
The bank adheres strictly to the regulatory guidelines on

corporate governance. Disclosures on corporate
governance are provided in the Corporate Governance
The banks capital fund is divided into two parts- Tier-I and
Tier-II capital. Tier-I includes the equity (paid-up capital,
share premium, statutory reserve and retained earnings) and
Tier-II includes general provision on unclassified loans and
advances, revaluation reserves, unsecured subordinated
debt and exchange equalization account. Total consolidated
Financial Analysis
Total Assets
Consolidated assets of the bank stood at Tk 238,169 million in
2012 as against Tk 200,996 million in 2011. Total assets of PBL
stood at Tk 236,833 million in 2012 from Tk 199,950 million in
2011 registering a growth of 18.45 percent. The increase in
assets of PBL was mainly driven by growth of customer
deposits. The growth of deposits was used for funding growth in
credit and holding of securities for SLR purpose and as a
primary dealer. The economy witnessed a satisfactory growth
scenario in credit and deposits mobilization.
Growth of Balance Sheet Items

Outstanding
Taka in Million
2012
Growth of
PBL
Industry
Average
Grouth
2011
236,833
199,950
18.45
17.99
Deposits
182,053
159,816
13.91
20.31
Loans &
Advances
160,890
138,848
15.87
16.24
Assets
Cash and Balance with Bangladesh Bank & its Agent

Consolidated position of the bank is Tk 16,187 million in
2012 as against Tk 13,508 million in 2011. PBLs position
increased from Tk 13,497 million in 2011 to Tk 16,177
million in 2012 depicting a growth of 19.86 percent. The
growth in deposits increased the Cash Reserve
Requirement of the bank which is maintained with the
Bangladesh Bank and its agent.
performing loan of PBL was 3.83 percent which was much

below the industry average of 10.03 percent.
Liabilities
Consolidated total liabilities (excluding equity) of the bank
stood at Tk 217,207 million in 2012 as against Tk 181,733
million in 2011. The total liabilities (excluding equity) of PBL
stood at Tk 216,045 million in 2012 from Tk 180,856 million
in 2011 registering a growth of 19.46 percent. The increase
in liability was mainly due to growth in deposits and
borrowings.
Borrowings from other banks, financial institutions and agents
The borrowing of PBL stood at Tk 20,682 million which
represents PBLs borrowing against PBL Bond, call
borrowing, repo of treasury bills and refinance against SME
loan from Bangladesh Bank. The borrowed amount was
mainly used for purchasing Treasury Bills/Bonds which
were devolved on the bank in excess of SLR requirement.
Balance with other banks and financial institutions
Deposits
Consolidated position of the bank is Tk 1,718 million in 2012

as against Tk 1,580 million in 2011. PBLs position
increased from Tk 1,516 million in 2011 to Tk 1,644 million
in 2012 depicting a growth of 8.44 percent. The positive
growth in PBLs position was due to increase in both number
and balance of nostro accounts maintained with overseas
banks. Adequate funds were maintained with correspondent
banks for payment against LC commitments.
The deposits of PBL grew by 13.91 percent in 2012.

Customer deposits of the bank grew by 14.98 percent. The
growth was supported by branch network and high
standard service provided to customers along with liability
campaign carried out by retail liability team for mobilization
of no cost and low cost deposits. Fixed deposits remained
the main component of deposits contributing 45.37 percent
of the total deposits. Interest cost of deposit increased to
8.75 percent as against 8.15 percent of the previous year
as a result of increase in rates of high cost term deposits
fueled by the liquidity position in the market. Scheme
deposits increased by 19.54 percent over the previous
year. The clientele group of the Bank was individuals,
corporation, NGO, NBFI, government bodies etc.
Investment
PBLs investment increased during the year by Tk 10,498
million and stood at Tk 49,670 million as at 31 December
2012. The bank purchased government treasury bills to
cover the increased SLR requirement. In addition, as a
primary dealer PBL had to buy government treasury
bills/bonds which were devolved by Bangladesh Bank.
Loans and Advances / Investments
Consolidated loans and advances/investments (credit under
Islamic Shar'iah) of the bank grew strongly by 16.39 percent
and stood at Tk 165,042 million in 2012. Loans and advances
of PBL increased by Tk 22,041 million showing a growth of
15.87 percent during 2012. Investment of Islamic banking
branches was Tk 13,670 million and the growth rate was 3.02
percent during 2012. Outstanding loans and advances of
off-shore banking units was Tk 4,895 million showing a
growth of 41.05 percent. Yield on loans and advances of PBL
increased to 15.17 percent from the level of 13.07 percent of
previous year due to increase of lending rates. Concentration
of loans and advances was well managed and details of
credit are given at notes to accounts no 7(a).5. Ratio of non
Deposits Mix of PBL
Types of
Deposits
Outstanding
Taka in million
2012
Current &
Contingent
Bills Payable
Savings
Special Notice
Deposits
FDR
Scheme
Deposits
Total Deposits
2011
Growth
%
Mix (%)
2012
2011
27,975 23,934
16.88
15.37 14.98
3,421 2,993
19,189 17,944
8,412 7,938
14.30
6.94
5.97
1.88 1.87
10.54 11.23
4.62 4.97
82,608 73,171
40,448 33,836
12.90
19.54
45.37 45.78
22.22 21.17
182,053 159,816 13.91
Shareholders Equity
Net Interest Income
Consolidated shareholders equity increased by 8.82

percent during the year. PBLs shareholders equity
increased by 8.86 percent during 2012. Paid-up capital of
PBL increased by Tk 1,560 million (bonus share of 2011)
and stood at Tk 9,358 million during 2012. The statutory
reserve increased by Tk 1,067 million during the year and
stood at Tk 6,840 million. Distributable profit stood at Tk
2,072 million during the year. The strong growth in
shareholders equity will help the bank to expand its business.
PBLs net interest income increased by 33.26 percent

during 2012. Net interest income was the main contributor
to operating income, accounting for 40.11 percent followed
by investment income and non-interest income.
Analysis of Income Statement of PBL

Sl
No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Particulars
Interest income
Interest expense
Net interest income
Investment income
Non-interest income
Total operating income
Total operating expenses
Profit before tax and provision
General provision on loans
Provision for classified loans
General provision on offbalance sheet items
Provision for diminution in
value of investments
Other provisions
Net profit before tax
Provision for tax including
deferred tax
Net profit after tax
2012
Taka in million
%
Change
2011
22,822 16,709 36.58

(17,410) (12,648) 37.65
5,411
4,061 33.26
4,633
4,157 11.45
3,447
3,341
3.18
13,492 11,559 16.72
(4,941) (4,132) 19.58
8,551
7,427 15.13
(240)
(305) (21.31)
(1,490)
(226) 559.29
(140)
(130)
7.69
(44)
(1,302)
5,335
2,636
6,766 (21.15)
3,132 (15.83)
2,699
3,634 (25.73)
Interest Income
PBLs interest income increased by 36.58 percent during
2012. Interest earned from loan and profit earned on
investment remained the principal component of interest
income. Yield on loans and advances increased to 15.38
percent in 2012 from 13.06 percent in the previous year
due to increase in rates of interest on lending and drives for
recovery of non-performing loans.
Interest Expense
On the other hand, PBLs interest expense increased by 37.65
percent during 2012. Interest cost of deposits was the main
component of interest expenses whereas interest cost of
borrowings also had a significant impact in 2012. Interest cost
of deposits increased to 8.75 percent in 2012 from 8.15 percent
in the previous year due to increase in rates of interest on
deposits arising from overall liquidity pressure in the market.
Moreover, the liquidity pressure compelled the bank, a Primary
Dealer, to go for mobilization of additional high cost deposits
and additional borrowings to purchase treasury bills / bonds
which were devolved by the Bangladesh Bank. This caused
interest expense on deposits to increase by 30.83 percent and
interest expense on borrowings to increase by 112.41 percent.
Investment Income
PBLs investment income consists of interest / discount
earned on treasury bills / bonds, gain on government security
trading, dividend received on shares and capital gain from
sale of securities of listed companies. Investment income
increased by Tk 476 million during the year registering a
growth of 11.45 percent over the previous year, accounted for
34.34 percent of the operating income. Since PBL is a primary
dealer, securities were devolved by the Bangladesh Bank in
excess of SLR requirement. As such interest/discount income
became the main contributor to investment income.
Non-Interest Income
Non-interest income of PBL increased by 3.18 percent
during the year. Commission and exchange based income of
the bank decreased by 9.65 percent during the year due to
fall in import business and lower spread between buying and
selling rates of foreign currencies. However, other charges
and recoveries increased during the year registering a
growth of 56.11 percent as a result of realization of charges
against banks superior services provided which contributed
to overall growth of non-interest income.
Total Operating Income
Due to the reasons explained above, total operating income
of the bank grew by 16.72 percent during the year and
stood at Tk 13,492 million.
Total Operating Expense
Total operating expenses of PBL increased by 19.58
percent during the year mainly due to increase in
personnel and other operating expenses. To match with
the growth of SME and retail business and branch
expansion a number of manpower was recruited along
with sales force. Moreover, to keep the salary package
competitive in the industry, there was upward revision of
the packages in the last quarter of 2011 which had full
effect in personnel expenses in the year 2012. However,
the enhancement of the package will motivate our
employees to do even better in future and targeted
increase of business especially in SME and retail
segments will benefit the bank in broad spectrum. PBL
also made donation amounting to Tk 213.41 million to
Prime Bank Foundation to carry on various CSR activities.
PBL also focused on developing brand image and
increased promotional and advertisement expenses. This
strategy added value to the business. The banks cost
income ratio was 36.62 percent in 2012 which slightly
increased from 35.75 percent in 2011 due to increased
investment in branch expansion and development of IT
infrastructure. Considering the factors stated above, the
ratio indicates the satisfactory operating efficiency of the
bank as per the industry standard.
The productivity of the employee continued to grow which
is evident from the following ratio:
Taka in million
Particulars
Income per employee
2012
5.30
5.04
Profit before provision per employee
3.36
3.24
Assets per employee
93.09
87.24
Expense per employee
Profit before tax per employee
1.94
2.10
2011
1.80
2.95
Provision for Classified Loans

The provision against classified loans increased during the
year due to change in loan classification and provisioning
policy by the Bangladesh Bank. Total provision against
classified loan was Tk 1,490 million during 2012 as against Tk
226 million of previous year. Provision adequacy ratio was
100.15 percent against industry average of 93.89 percent.
NPL ratio
Industry average of NPL ratio

Provision adequacy
2012
3.83%
10.03%
100.15%
2011
1.37%
6.10%
106.43%
Industry average for provision

93.89%
103.04%
Recovery
adequacyagainst classified and written-off Loans
PBL was able to recover Tk 460.24 million against classified loans

and Tk 85.05 million against written-off loans during the year 2012.
General Provision
Provision against unclassified loans was made to the tune
of Tk 240 million durng 2012 as against Tk 305 million of
previous year. General provision requirement on
off-balance sheet outstanding had to be provided Tk 140
million as against Tk 130 million of previous year. The bank
was not required to make any provision for off-Shore
banking units during the year. This is to be noted that
general provision is regarded as Tier-II capital of the bank
and provides safeguard against future default as well as
supports business growth by strengthening the capital
base.
Adequate provision was made to the tune of Tk 44 million
for diminution in value of investment in shares arising from
the volatile capital market.
Other Provisions
Upon detection of irregularities assessing the recovery
prospects, the bank made full provision against protested bills
and claims originated during the course of banking operations
amounting to Tk 1,302 million.
Net Profit before Tax
After making above provisions, net profit before tax of PBL
stood at Tk 5,335 million registering a negative growth of 21.15
percent due to higher provision requirement due mainly
change in loan provisioning policy by the Bangladesh Bank
Net Profit after Tax

Net profit after tax stood at Tk 2,699 million registering a
negative growth of 25.73 percent during 2012. Earnings per
share decreased to Tk 2.88 as at December 31, 2012 from
Tk 3.88 in the previous year. Average ROA and ROE stood
at 1.24 percent and 13.53 percent respectively.
Statutory Reserve
As per Bank Company Act 1991, 20 percent of profit before

tax is required to be transferred to statutory reserve. As
such an amount of Tk 1,067 million has been transferred to
statutory reserve.
Dividends
Thus fund available for distribution is Tk 2,072 million (Tk

1,632 million from current year profit plus Tk 440 million
from retained earnings of previous year). In order to
maintain a satisfactory capital adequacy ratio of the bank,
the Board decided to recommend 10 percent stock dividend
and 10 percent cash dividend for the year 2012.
Satisfactory capital fund will enable the bank to increase
business activities.
Shareholders Value
PBL remains fully committed to delivery of higher

shareholders value. The high profitability track record
underpins the value the shareholders derived from
investing in the shares of PBL. The earnings per share
decreased and stood at Tk 2.88 and return on average
equity stood at Tk 13.53 during 2012. Market capitalization
stood at Tk 34,624 million as at December 2012 holding the
9th position among the listed companies and 2nd position
among the listed banks in the Dhaka Stock Exchange. PBL
has been rated as 3rd among the listed companies as per
Performance of DSE-20 Index. Share of PBL in market
capitalization was 1.89 percent.
Meeting of the Board
During the year 2012, 19 Board Meetings were held. Details

are at Annexure-1.
Re-appointment of Auditors
Hoda Vasi Chowdhury & Co and Howladar Yunus & Co were

appointed as external auditors of the bank for the year 2012
in the 17th Annual General Meeting held on 29th March
2012. They have expressed their willingness to continue as
external auditors for the year 2013. As per the Bangladesh
Bank guidelines they are eligible for re-appointment.
Annual General Meeting will be held on 31st March 2013 at

Bashundhara Convention Center at 10.00 a.m. The
Directors Report and financial statements were approved
at 393rd Board Meeting held on 28th February 2013 for
presentation to the shareholders.
Provision for Income Tax

Provision against current year income tax of PBL was Tk
2,450 million compared to Tk 2,907 million of preceding
year. Deferred tax provision decreased to Tk 186 million
from Tk 225 million of previous year.

Chairman
Some PBL Activities during 2012
PBL family members rendering chorus Aso Hey Boishakh in

the early hour of Pohela Boishakh - 1419
Chairman Mr. Md. Shirajul Islam Mollah inaugurating 17th

anniversary celebration of the Bank.
Exchange of Mou with Hajj Agencies Association of Bangladesh

(HAAB)
Launching of "My First Account", School Banking for the

students.
Agreement signing ceremony with CIMB Islamic Bank of

Malaysia
Seminar on Role of Waqf in Socio Economic Development

followed by Iftar Mahfil in progress.
Some PBL Activities during 2012
A PBL sponsored International Seminar Positioning Bangladesh: Branding for Business.
Signing ceremony of license agreement with Japan Credit

Bureau (JCB) International Co. Ltd.
Launching of Mobile Banking Service Easy Cash.
Press conference on the eve of launching Prime Cash
Corporate Agreement signing ceremony with Metlife Alico,

Bangladesh
Closing ceremony of training course organized by PBL HR

Training & Development Center.
Certificate on compliances of conditions of The Corporate

Governance guidelines to the shareholders of Prime Bank Limited
We have examined the compliances of conditions of The Corporate Governance guidelines of the
Bangladesh Securities and Exchange Commission (BSEC) by Prime Bank Limited (the Bank)
as stipulated in clause 7(i) of the BSEC notification no SEC/CMRRCD/2006-158/134/Admin/44
dated 7 August 2012.
The compliances of conditions of The Corporate Governance guidelines as stated in the aforesaid
notification and reporting of the status of compliance is the responsibility of the Banks
Management. Our examination for the purpose of issuing this certification was limited to the
checking of procedures and implementations thereof, adopted by the Bank for ensuring the
compliance of conditions of corporate governance and correct reporting of compliance status on
the attached statement on the basis of evidence gathered and representation received.
To the best of our information and according to the explanations given to us, we certify that,
except as reported on the attached status of compliance statement, the Bank has complied with
the conditions of corporate governance stipulated in the above mentioned BSEC notification
dated 7 August 2012.
Manzoor Alam, FCA

Senior Partner
ICAB Enrolment Number 132
For, Hoda Vasi Chowdhury & Co.
Chartered Accountants
Jahidur Rahman, FCA

Partner
ICAB Enrolment Number 860
For, HowladarYunus & Co
Dhaka, February 28, 2013
Auditors Report
to the shareholders of Prime Bank Limited
We have audited the accompanying consolidated financial statements of Prime Bank Limited and its subsidiaries (together
referred to as the Group) as well as standalone financial statements of Prime Bank Limited (the Bank) for the year ended
31 December 2012 which comprise the balance sheet, profit and loss account, statement of changes in equity and cash
flow statement for the year then ended, and a summary of significant accounting policies, other explanatory notes and
information.
Managements responsibilities for the Consolidated Financial Statements
Management is responsible for the preparation of consolidated financial statements that give a true and fair presentation of
these in accordance with Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS)
as explained in note 2, the Bank Companies Act 1991, the rules and regulations issued by the Bangladesh Bank, the
Companies Act 1994 and other applicable laws and regulations, and for such internal control as management determines is
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud
or error.
Auditors responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with Bangladesh Standards on Auditing. Those standards require that we comply with relevant ethical
requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free of
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement
of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control
relevant to the entitys preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys
internal control. An audit also includes evaluating the appropriateness of accounting principles 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 the financial statements of the Bank.
The financial statements of the Banks five subsidiaries, namely Prime Exchange Co. Pte. Ltd. (Singapore), Prime Exchange
(UK) Ltd., PBL Finance (Hong Kong) Ltd., Prime Bank Investment Ltd. and Prime Bank Securities Ltd. reflects total assets
of Tk. 10,458,486,721 as at 31 December 2012 and total revenue of Tk.1,327,577,073 for the year ended 31 December
2012. These financial statements have been audited by other component auditors who have expressed unqualified audit
opinion and accepted by us for the audit of the Groups consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion
In our opinion, the financial statements have been prepared in accordance with Bangladesh Accounting Standards (BAS)
and Bangladesh Financial Reporting Standards (BFRS) as explained in note 2, give a true and fair view of the financial
position of the Group and the Bank as at 31 December 2012 and of the results of their financial performance and their
cash flows for the year then ended and comply with the applicable sections of the Bank Companies Act 1991, the rules and
regulations issued by the Bangladesh Bank, the Companies Act 1994, the Securities and Exchange Rules 1987 and other
applicable laws and regulations.
We also report that:

a)
we have obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purposes of our audit and made due verification thereof;
b)
in our opinion, proper books of account as required by law have been kept by the Bank so far as it appeared from
our examination of those books and proper returns adequate for the purpose of our audit have been received from
branches not visited by us;
c)
the Banks balance sheet and profit and loss account together with the annexed notes 1 to 50 dealt with by the report
are in agreement with the books of account and returns;
d)
the expenditure incurred was for the purpose of the Banks operations;
e)
the financial position of the Bank as at 31 December 2012 and the profit for the year then ended have been properly
reflected in the financial statements, the financial statements have been prepared in accordance with the generally
accepted accounting principles;
f)
the financial statements have been drawn up in conformity with the Bank Companies Act 1991 and in accordance
with the accounting rules and regulations issued by the Bangladesh Bank;
g)
adequate provisions have been made for advances and other assets which are in our opinion, doubtful of recovery;
h)
the financial statements conform to the prescribed standards set in the accounting regulations issued by the
Bangladesh Bank after consultation with the professional accounting bodies of Bangladesh;
i)
the records and statements submitted by the branches have been properly maintained and consolidated in the
financial statements;
j)
the information and explanations required by us have been received and found satisfactory;
k)
over 80% of the risk weighted assets have been reviewed by us spending over 5,000 person hours;
l)
Capital adequacy Ratio (CAR) as required by the Bangladesh Bank has been maintained adequately during the year.
Hoda Vasi Chowdhury & Co

Howladar Yunus & Co

Dhaka, 28 February 2013
Consolidated Balance Sheet

as at 31 December 2012
Particulars
Notes
2012
Amount in Taka
2011
PROPERTY AND ASSETS

Cash
In hand (including foreign currencies)

Balance with Bangladesh Bank and its agent bank (s)
(including foreign currencies)
In Bangladesh
Outside Bangladesh
Money at call and short notice
Investments
Government
Others
Loans, advances and lease /investments
2,069,226,315
1,474,979,105
14,117,939,937
16,187,166,252
12,032,573,269
13,507,552,374
251,534,389
1,466,724,570
1,718,258,959
382,122,372
1,197,482,195
1,579,604,567
44,936,697,967
3,065,827,910
48,002,525,877
34,395,651,805
3,120,176,474
37,515,828,279
Loans, cash credits, overdrafts etc./ investments
156,374,907,982
134,406,227,505
Bills purchased and discounted
8,667,419,387
165,042,327,369
4,419,804,836
2,798,965,983
238,169,049,276
7,395,421,459
141,801,648,964
4,033,403,880
2,557,642,372
200,995,680,436
21,149,348,118
10,969,847,805
27,294,077,412
3,421,438,111
19,188,831,632
132,058,072,695
181,962,419,850
23,625,794,636
2,992,596,076
17,943,888,911
115,250,080,280
159,812,359,903
14,095,474,132
217,207,242,100
10,950,827,275
181,733,034,983
14.2
9,357,714,690
7,798,095,580
14.9
15
16
17
18
67
6,839,527,566
42,034,865
251,603,567
4,510,188
2,225,185,837
20,961,807,176
238,169,049,276
63
5,772,509,105
259,338,544
251,603,567
8,058,632
2,931,809,566
19,262,645,453
200,995,680,436
Fixed assets including premises, furniture and fixtures

Other assets
Non - banking assets
Total assets
9
10
LIABILITIES AND CAPITAL

Liabilities
Deposits and other accounts
Current / Al-wadeeah current deposits
Bills payable
Savings bank / Mudaraba savings deposits
Term deposits / Mudaraba term deposits
Bearer certificate of deposit
Other deposits
Other liabilities
Total liabilities
Capital / Shareholders equity
Paid -up capital
Share premium
Minority Interest
Statutory reserve
Revaluation gain / loss on investments
Revaluation reserve
Foreign currency translation gain
Other reserve
Surplus in profit and loss account / Retained earnings
Total Shareholders equity
Total liabilities and Shareholders equity
11
12
13
14.8
19
2,241,230,396
2,241,230,396
Consolidated Balance Sheet

Particulars
Notes
2012
Amount in Taka
2011
OFF - BALANCE SHEET EXPOSURES

Contingent liabilities
Acceptances and endorsements
Letters of guarantee
Irrevocable letters of credit
Bills for collection
Other contingent liabilities
20
20.1
20.2
20.3
20.4
Other commitments
Documentary credits and short term trade -related transactions
Forward assets purchased and forward deposits placed
Undrawn note issuance and revolving underwriting facilities
Undrawn formal standby facilities , credit lines and other commitments
Liabilities against forward purchase and sale
Total Off-Balance Sheet exposures including contingent liabilities
26,979,335,910
42,846,572,774
28,353,752,325
10,007,661,530
108,187,322,539
28,963,416,330
34,955,284,339
29,706,663,305
7,429,741,406
101,055,105,380
108,187,322,539
101,055,105,380
These financial statements should be read in conjunction with the annexed notes 1 to 50.
Chairman
Director
Director
Managing Director
See annexed auditors report to the Shareholders of the date.

Howladar Yunus & Co

Consolidated Profit and Loss Account

for the year ended 31 December 2012
Particulars
Notes
2012
Amount in Taka
2011
Interest income / profit on investments
22
23,807,748,522
17,546,811,157
Interest / profit paid on deposits, borrowings, etc.
23
(17,987,629,591)
(13,046,539,824)
5,820,118,931
4,500,271,333
Net interest / net profit on investments

Investment income
24
4,451,946,974
4,224,206,552
25
2,628,137,057
2,917,119,847
26
1,101,978,717
798,991,288
14,002,181,679
12,440,589,020
Total operating income (A)

Salaries and allowances
27
2,780,540,201
2,131,614,239
Rent, taxes, insurance, electricity, etc.
28
474,283,014
403,458,311
Legal expenses
29
32,391,528
18,559,956
Postage, stamp, telecommunication, etc.
30
134,466,650
138,050,963
Stationery, printing, advertisements, etc.
31
308,479,135
303,104,472
Managing Directors salary and fees
32
11,448,000
9,192,067
Directors fees
33
5,217,746
3,699,624
Auditors fees
34
1,522,518
1,312,505
Charges on loan losses
35
Depreciation and repair of Banks assets
36
345,856,437
284,073,883
Other expenses
37
1,068,015,016
1,010,684,627
Total operating expenses (B)
5,162,220,245
4,303,750,647
Profit / (loss) before provision (C=A-B)
8,839,961,434
8,136,838,373
Specific provision
1,490,000,000
226,000,000
General provision
240,000,000
305,000,000
140,000,000
130,000,000
1,870,000,000
661,000,000
(27,053,710)
389,941,266
Provision for impairment of client margin loan
179,183,361
Other provisions
1,301,942,300
Total provision (D)
3,324,071,951
1,050,941,266
Total profit / (loss) before taxes (C-D)
5,515,889,483
7,085,897,107
2,629,200,771
3,171,778,786
186,283,025
225,165,885
2,815,483,796
3,396,944,671
2,700,405,687
3,688,952,436
591,798,618
596,047,115
3,292,204,305
4,284,999,551
Provision for loans / investments
38
Provision for Off-Shore Banking Units

Provision for off-balance sheet exposures
Provision for taxation:

Current tax
39
Deferred tax
Net profit after taxation
Retained earnings brought forward from previous year
19.1
Consolidated Profit and Loss Account

Particulars
Notes
2012
Amount in Taka
2011
Appropriations
Statutory reserve
1,067,018,461
1,353,189,982
Minority interest
General reserve
Retained surplus
19
Earnings per share (EPS)
44
1,067,018,468
1,353,189,985
2.89
3.94
2,225,185,837
2,931,809,566
Chairman
Director
Director
Managing Director
See annexed auditors report to the Shareholders of the date
Howladar Yunus & Co
Consolidated Cash Flow Statement

Particulars
A)
Notes
2012
Amount in Taka
2011
Cash flows from operating activities

Interest receipts in cash
26,869,276,024
19,000,177,647
Interest payments
(17,771,734,765)
(11,980,804,137)
Dividend receipts
14,477,350
467,592,508
2,628,137,056
2,916,034,666
85,048,984
110,069,208
(2,654,658,200)
(2,124,206,268)
(688,608,205)
(579,510,579)
(1,992,688,589)
(2,761,312,666)
Fees and commission receipts in cash

Recoveries of loans previously written off
Cash payments to employees
Cash payments to suppliers
Income taxes paid
Receipts from other operating activities
40
1,918,600,187
1,913,154,655
Payments for other operating activities
41
(1,453,178,417)
(1,474,437,464)
6,954,671,425
5,486,757,570
1,157,486,973
(4,885,593,657)
(23,651,758,398)
(23,078,063,101)
(12,968,997,333)
(10,746,999,469)
9,125,817,450
8,282,513,358
22,559,005,948
31,179,063,572
428,842,035
554,840,857
685,431,691
1,557,180,763
(2,664,171,634)
2,862,942,323
4,290,499,791
8,349,699,893
5,000,000
5,000,000
(2,591,181)
(416,281,955)
(676,877,625)
(2,514,084,521)
(5,720,867)
(5,089,558)
3,893,813
240,300
(676,295,860)
(2,930,215,734)
Cash generated from operating activities before

changes in operating assets and liabilities
Increase / (decrease) in operating assets and liabilities
Statutory deposits
Purchase of trading securities (Treasury bills)
Loans and advances to other banks
Loans and advances to customers
Other assets
42
Deposits from other banks / borrowings

Deposits from customers
Other liabilities account of customers
Trading liabilities
Other liabilities
Net cash from operating activities

B)
43
Cash flows from investing activities

Debentures
Payments for purchases of securities
Purchase of property, plant and equipment
Payment against lease obligation
Proceeds from sale of property, plant and equipment
Net cash used in investing activities
Consolidated Cash Flow Statement

Particulars
C)
Notes
2012
Amount in Taka
2011
Cash flows from financing activities

Receipts from issue of sub-ordinated bond
Receipts from issue of ordinary share including premium net off Tax
Dividend paid
(779,809,558)
(744,474,022)
Net cash used in financing activities
(779,809,558)
(744,474,022)
D)
Net increase / (decrease) in cash and cash equivalents (A+ B + C)
2,834,394,373
4,675,010,137
E)
Effects of exchange rate changes on cash and cash

equivalents
(13,654,203)
(251,323,912)
F)
Cash and cash equivalents at beginning of the year
15,089,790,941
10,666,104,716
G)
Cash and cash equivalents at end of the year (D+E+F)
17,910,531,111
15,089,790,941
2,069,226,315
1,474,979,105
14,117,939,937
12,032,573,269
1,718,258,959
1,579,604,567
Reverse repo
5,105,900
2,634,000
17,910,531,111
15,089,790,941
Cash and cash equivalents at end of the year

Cash in hand (including foreign currencies)
Prize bonds (note-6a)
Chairman
Director
Director
Managing Director

-
Surplus / (deficit) on account of revaluation of investments
Currency translation differences
Net gains and losses not recognized in the income statement
Net profit for the year
9,357,714,690
7,798,095,580
Issue of share capital-right share
Appropriation made during the year
Balance as at 31 December 2012
Chairman
Minority interest
5,772,509,105
6,839,527,566
1,067,018,461
5,772,509,105
5,772,509,105
2,241,230,396
2,241,230,396
2,241,230,396
2,241,230,396
Taka
Share
premium
63
67
63
63
Taka
Minority
interest
251,603,567
251,603,567
251,603,567
251,603,567
Taka
Revaluation
reserve
259,338,544
42,034,865
Director
Director
42,034,865
151,271,024
(368,574,703)
259,338,544
259,338,544
Taka
Revaluation
gain / loss on
investments
Cash dividend
1,559,619,110
Adjustment of last year revaluation gain on investments
Dividends (Bonus shares)
7,798,095,580
7,798,095,580
Taka
Taka
Surplus / (deficit) on account of revaluation of properties
Restated balance
Changes in accounting policy / Last years profit
Balance as at 1 January 2012
Particulars
Statutory
reserve
Paid up
capital
Consolidated Statement of Changes in Equity

8,058,632
4,510,188
4,510,188
(3,548,444)
8,058,632
8,058,632
Taka
F.C.
translation
gain
Taka
Total
(4,130,727)
151,271,024
(368,574,703)
(779,809,558)
2,700,405,687
Managing Director
2,931,809,566 19,262,645,453
2,225,185,837 20,961,807,176
(1,067,018,461)
(4)
(779,809,558)
(1,559,619,110)
2,700,405,687
2,931,227,283 19,041,211,047
(582,283)
2,931,809,566 19,262,645,453
2,931,809,566 19,262,645,453
Taka
Retained
earnings
Balance Sheet
Particulars
Notes
2012
Amount in Taka
2011 (Restated)
PROPERTY AND ASSETS

Cash
3a


In Bangladesh
4a
Outside Bangladesh
5
Investments
6a
Others
Loans, advances and lease / investments
Loans, cash credits, overdrafts, etc./ investments

Other assets
1,464,103,675
14,117,939,937
12,032,573,269
16,177,443,513
251,389,642
8a
9a
10a
Total assets
377,477,308
1,138,637,962
44,936,697,967
34,395,651,805
49,670,435,192
39,172,298,623
153,440,706,958
132,028,898,117
160,889,848,563
138,848,430,008
4,087,797,994
2,941,514,147
236,833,005,579
199,950,493,482
20,681,977,457
10,969,847,805
27,373,823,258
23,628,852,206
19,188,831,632
17,943,888,911
4,733,737,225
7a
13,496,676,944
1,392,741,405
1,644,131,047
Government
2,059,503,576
7,449,141,605
4,363,349,270
-
1,516,115,270
4,776,646,818
6,819,531,891
3,975,458,490

Liabilities

11a
12a.1.c
Bills payable
3,421,438,111

Other liabilities
Total liabilities

Paid up capital
Share premium
Statutory reserve
13a
13,311,117,157
159,815,720,972
10,069,949,491
14 .2
9,357,714,690
7,798,095,580
15
6,839,527,566
5,772,509,105
17
251,603,567
251,603,567
14.8
18a
19a
180,855,518,268
Foreign currency translation gain
216,045,966,674
16a
Other reserve
115,250,383,779
182,052,872,060
Revaluation gain / (loss) on investments

Revaluation reserve
132,068,779,059
Other deposits
2,992,596,076
2,241,230,396
19,719,692
5,015,711
-
2,072,227,283
20,787,038,905
236,833,005,579
2,241,230,396
243,159,736
8,694,724
-
2,779,682,107
19,094,975,214
199,950,493,482
Balance Sheet
Particulars
Notes
2012
Amount in Taka
2011 (Restated)
OFF - BALANCE SHEET EXPOSURES

20a
20a.1
26,979,335,910
28,963,416,330
20a.2
42,846,572,774
34,955,284,339
20a.3
28,353,752,325
29,706,663,305
20a.4
10,007,661,530
7,429,741,406
108,187,322,539
101,055,105,380
108,187,322,539
101,055,105,380
Other commitments
Chairman
Director
Director
Managing Director
See annexed auditors report to the Shareholders of the date.
Hoda Vasi Chowdhury & Co.
Howladar Yunus & Co.
Profit and Loss Account

Particulars
Notes
2012
Amount in Taka
2011 (Restated)
Interest income / profit on investments
22a
22,821,500,674
16,708,767,903
Interest / profit paid on deposits, borrowings, etc.
23a
(17,410,286,124)
(12,647,982,518)
5,411,214,550
4,060,785,385
Net interest / net profit on investments

Investment income
24a
4,633,326,302
4,157,293,110
25a
2,429,444,757
2,688,928,970
26a
1,017,962,459
652,092,975
13,491,948,068
11,559,100,440

27a
2,673,292,974
2,057,720,184
28a
430,873,148
367,568,017
Legal expenses
29a
28,570,418
16,312,942
30a
127,601,535
132,056,013
31a
304,366,321
298,731,953
32
11,448,000
9,192,067
Directors fees
33a
5,152,571
3,569,924
Auditors fees
34a
575,000
522,500
35
36a
331,708,120
271,478,216
Other expenses
37a
1,027,527,828
974,998,715
4,941,115,915
4,132,150,531
8,550,832,153
7,426,949,909
Specific provision
1,490,000,000
226,000,000
General provision
240,000,000
305,000,000
140,000,000
130,000,000
1,870,000,000
661,000,000
43,797,548
Other provisions
1,301,942,300
Total provision (D)
3,215,739,848
661,000,000
5,335,092,305
6,765,949,909
2,449,800,000
2,907,320,000
186,300,000
224,500,000
2,636,100,000
3,131,820,000
2,698,992,305
3,634,129,909
440,253,439
498,742,179
3,139,245,744
4,132,872,089
Provision for loans / investments
38a
Provision for Off-Shore Banking Units

Provision for taxation

Current tax
39a
Deferred tax
Net profit after taxation

Retained earnings brought forward from previous years
19.1a

Particulars
Notes
2012
Amount in Taka
2011 (Restated)
Appropriations
Statutory reserve
1,067,018,461
1,353,189,982
1,067,018,461
1,353,189,982
General reserve
Retained surplus
19a
2,072,227,283
2,779,682,107
44a
2.88
3.88
Chairman
Director
Director
Managing Director
See annexed auditors report to the Shareholders of date
Howladar Yunus & Co
Cash Flow Statement

for the year ended 31 December 2012z
Particulars
A)
Notes
2012
Amount in Taka
2011

25,883,028,176
18,162,184,424
Interest payments
(17,194,391,298)
(11,585,290,180)
Dividend receipts
14,477,350
467,592,508
2,429,444,756
2,688,968,185
85,048,984
110,069,208
(2,554,040,973)
(2,066,912,251)
(683,868,903)
(576,159,881)
(1,992,688,589)
(2,761,312,666)

Recoveries of loans previously written off
Income taxes paid
40a
1,775,963,262
1,698,153,270
41a
(1,355,446,797)
(1,369,935,123)
6,407,525,968
4,767,357,494
1,157,486,973
(4,885,593,657)
(22,041,418,555)
(22,791,905,847)
(13,647,964,993)
(10,643,375,389)
8,658,446,788
8,282,513,358
22,646,097,089
31,097,395,141
428,842,035
554,840,857
786,096,248
1,085,124,521
(2,012,414,415)
2,698,998,984
4,395,111,553
7,466,356,478
5,000,000
5,000,000
(127,663,428)
(29,996,467)
(666,354,778)
(2,505,029,178)
(5,720,867)
(5,089,558)
3,893,813
240,300
(790,845,260)
(2,534,874,903)
Cash generated from operating activities before changes in

operating assets and liabilities
Statutory deposits
Other assets
42a

Trading liabilities
Other liabilities

B)
43a

Debentures
Proceeds from sale of securities

Cash Flow Statement

for the year ended 31 December 2012z
Particulars
C)
Notes
2012
Amount in Taka
2011

Receipts from issue of sub-ordinated bond
Receipts from issue of ordinary share including premium net off Tax
Dividend paid
(779,809,558)
(288,818,355)
(779,809,558)
(288,818,355)
D)
Net increase / (decrease) in cash and cash equivalents (A+B+C)
2,824,456,735
4,642,663,220
E)
Effects of exchange rate changes on cash and cash equivalents
(13,202,489)
(243,265,280)
F)
15,015,426,214
10,616,028,274
G)
17,826,680,460
15,015,426,214
2,059,503,576
1,464,103,675
14,117,939,937
12,032,573,269
1,644,131,047
1,516,115,270
Reverse repo
5,105,900
2,634,000
17,826,680,460
15,015,426,214

Prize bonds (note-6a)
Chairman
Director
Director
Managing Director
9,357,714,690
7,798,095,580
Issue of share capital (Right share)
Chairman
5,772,509,105
6,839,527,566
1,067,018,461
5,772,509,105
5,772,509,105
Taka
Statutory
reserve
251,603,567
251,603,567
251,603,567
251,603,567
Taka
Revaluation
reserve
243,159,736
19,719,692
Director
Director
19,719,692
145,134,659
(368,574,703)
243,159,736
243,159,736
Taka
Revaluation
gain / loss on
investments
2,241,230,396
2,241,230,396
Cash dividend
Net gains and losses not recognized in the income

statement
Share premium
Surplus / deficit on account of revaluation of investments
2,241,230,396
2,241,230,396
1,559,619,110
7,798,095,580
7,798,095,580
Taka
Taka
Surplus / deficit on account of revaluation of properties
Restated balance
Changes in accounting policy / Last years profit
Particulars
Share
premium
Paid-up
Capital
Statement of Changes in Equity

8,694,724
5,015,711
5,015,711
(3,679,013)
8,694,724
8,694,724
Taka
F.C.
Translation
gain
19,094,975,214
20,787,038,905
(779,809,558)
2,698,992,305
18,867,856,157
(3,679,013)
145,134,659
(368,574,703)
19,094,975,214
19,094,975,214
Taka
Total
Managing Director
2,779,682,107
2,072,227,283
(1,067,018,461)
(779,809,558)
(1,559,619,110)
2,698,992,305
2,779,682,107
2,779,682,107
2,779,682,107
Taka
Retained
earnings
Notes to the Financial Statements

1.1
Prime Bank Limited

The Prime Bank Limited (the Bank) was incorporated as a public limited company in Bangladesh under
Companies Act, 1994 with the registered office of the company at 119-120 Motijheel C/A, Dhaka-1000. It
commenced its banking business with one branch from April 17, 1995 under the license issued by Bangladesh
Bank. Presently the Bank has 130 (One Hundred Thirty) branches, 17 (Seventeen) SME Centre/ Branches all
over Bangladesh and 2 (two) booths located at Dhaka Club, Dhaka and at Chittagong Port, Chittagong. Out of
the above 130 branches, 05 (five) branches are designated as Islamic Banking branch complying with the rules
of Islamic Shariah. Also the Bank has 3 (Three) Off-shore Banking Units (OBU). The Bank went for Initial Public
Offering in 1999 and its share is listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange
Limited as a publicly traded company for its general classes of share.
1.1.1
Principal activities
The principal activities of the Bank are to provide all kinds of commercial banking services to customers through
its branches and SME centre/ Branches in Bangladesh. The Bank also provides Offshore banking services
through 3(three) OBUs.
1.1.2
Off-shore Banking Unit

The Bank obtained Off-shore Banking Unit permission vide letter no. BRPD(P)744(84)/2001-868 dated 19 March
2001. The Bank commenced operation of its one unit from March 15, 2007. Presently the Bank has 3 (Three)
Off-shore banking Units (OBU) located at Dhaka EPZ, Chittagong EPZ and Adamjee EPZ. The Off-shore banking
units are governed under the rules and guidelines of Bangladesh Bank. Separate financial statements of Off
-shore banking unit are shown in Annexure-K.
1.2
The Bank has 5 (Five) Subsidiaries details of which are given at note no. 1.2.1-1.2.5.
1.2.1
Prime Exchange Co. Pte. Limited, Singapore

Prime Exchange Co. Pte. Ltd., a fully owned subsidiary company of Prime Bank Limited was incorporated in
Singapore on January 06, 2006 and commenced its remittance business from July 08, 2006 under the remittance
license issued by the Monetary Authority of Singapore (MAS) under section 7A(3) of the Money Changing and
Remittance Business Act (Chapter 187), Singapore. The principal activities of the company are to carry on
the remittance business and to undertake and participate in transactions, activities and operations commonly
carried on or undertaken by remittance and exchange house. Financial Statements of the company are shown in
Annexure-N.
1.2.2

Prime Bank Investment Limited is a subsidiary company of Prime Bank Limited incorporated as a public limited
company on April 27, 2010 with the registrar of Joint Stock Companies, Dhaka vide certificate of incorporation
no.C-84266/10 dated 28 April 2010 which has commenced its business on the same date. There of 29,999,994
shares (out of 30,000,000 shares) of Prime Bank Investment Limited are held by Prime Bank Limited and only
6 shares are held by 6 senior executives of Prime Bank Limited and Prime Bank Investment Limited. The main
objectives 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, corporate advisory services etc.
Securities and Exchange Commission (SEC) thereafter issued a full fledged merchant banking license in favor of
Prime Bank Investment Ltd, vide letter no. SEC/Reg/MB/SUB/2010/03/208 dated 02 June 2010 with effect from
01 June 2010. Financial Statements of the company are shown in Annexure-L.
1.2.3

PBL Exchange (UK) Limited was incorporated as a private limited company with Companies House of England
and Wales under registration no. 7081093 dated 19 November 2009. The company is a wholly owned subsidiary
of Prime Bank Limited. The company commenced its operation on 02 August 2010 with three Branches located
at Brick Lane of London, Coventry Road of Birmingham and North Oldham of Manchester. The registered office
is located at 16 Brick Lane, London E1 6RF. Financial Statements of the company are shown in Annexure-O

1.2.4

Prime Bank Securities Limited was incorporated on April 29, 2010 as a private limited company under the
Companies Act 1994 vide certificate of incorporation no.C-84302 /10. Prime Bank Securities Limited become
member of Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited for brokerage transaction
vide Security Exchange Commission certificate no. 3.1/DSE-219/2010/429 dated 16.09.2010 and 3.2/CSE141/2010/239 dated 31.08.2010 respectively. Prime Bank Securities Limited commenced its operation from May
2011. The main objectives of the company are to carry on business of stock brokers / dealers in relation to shares
and securities dealings and other services as mentioned in the Memorandum and Articles of Association of the
Company. Prime Bank Limited and Prime Bank Investment Limited hold 95% and 5% of Prime Bank Securities
Limited respectively. Financial Statements of the company are shown in Annexure-M.
1.2.5

PBL Finance (Hong Kong) Limited, a fully owned subsidiary of Prime Bank Limited. PBL Finance (Hong Kong)
Limited was incorporated with Companies Registries of Hong Kong (Certificate of incorporation no. 1584971 and
Business Registration no. 58197431 both dated April 7, 2011) . PBL Finance (Hong Kong) Limited obtained
Money Lending Licenses (307/2011) issued by Honorable Court of Hong Kong on 28th July 2011. It has
commenced its operation from August 2011 with one branch located at 608, 6/F, Admiralty Centre, Tower-2, 18
Harcourt Road, Hong Kong. Financial Statements of the company are shown in Annexure-P.
2.00
Significant accounting policies and basis of preparation of financial statements
2.1
Basis of accounting
2.1.1
Statement of compliance
The financial statements of the Bank and its subsidiaries (the Group) are made up to 31 December 2012 and
are prepared under the historical cost basis, except for certain investments which are stated at fair/market value
and freehold land which are measured at revalued amount, in accordance with the First Schedule (Sec-38) of the
Bank Companies Act 1991, BRPD Circular # 14 dated 25 June, 2003 and DFIM Circular # 11, dated 23 December
2009, other Bangladesh Bank Circulars, Bangladesh Accounting Standards (BAS) and Bangladesh Financial
Reporting Standards (BFRS) adopted by the Institute of Chartered Accountants of Bangladesh (ICAB), the
Companies Act 1994, the Securities and Exchange Rules 1987, Dhaka & Chittagong Stock Exchanges listing
regulations and other laws and rules applicable in Bangladesh. In case the requirement of Bangladesh Bank
differs with those of BAS/BFRS, the requirement of Bangladesh Bank have been applied.
In addition to foregoing directives and standards, the operation of Islamic Banking Branches are accounted for in
accordance with Financial Accounting Standards issued by the Accounting and Auditing Organisation for Islamic
Financial Institutions, Bahrain, and Bangladesh Bank circular no-15, dated November 09, 2009. A separate
balance sheet, profit and loss account and a statement of profit paid on deposits are shown in Annexure-G and
G(1) and the figures appearing in the annexure have been incorporated in the related heads of these financial
statements as recommended by the Central Shariah Board for Islamic Banks in Bangladesh.
2.1.2
Basis of consolidation
The consolidated financial statements include the financial statements of Prime Bank Limited, and its subsidiaries
Prime Bank Investment Limited, Prime Bank Securities Limited, Prime Exchange Co. Pte. Ltd., Singapore, PBL
Exchange (UK) Limited and PBL Finance (Hong Kong) 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 ending 31 December 2012.
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. The subsidiary Prime
Exchange Co. Pte. Ltd., Singapore, Prime Exchange (UK) Ltd and PBL Finance (Hong Kong) Limited has a
common financial year ending 31 December 2012. The conversion policy of subsidiary companies is given
below.
Particulars
Price
Prime Exchange Co.

Pte. Ltd., Singapore
PBL Exchange
(UK) Ltd.
PBL Finance
(Hong Kong) Ltd.
For assets & liabilities
Closing price
65.23680
129.10130
10.30321
For income & expenses
Average price
64.13665
127.78200
10.41756
All intra-group transactions, balances, income and expenses are eliminated on consolidation. Profit and loss
resulting from transactions between Group are also eliminated on consolidation.
2.1.3
Use of estimates and judgments

In the preparation of the financial statements management required to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amount of assets, liabilities,
income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an on going basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in any future periods affected.
The most critical estimates and judgments are applied to calculate provision for loans, advances and
investments.
2.1.4
Foreign currency transaction

a) Foreign currency
Items included in the financial statements of each entity in the group are measured using the currency of the
primary economic environment in which the entity operates, i e. the functional currency. The financial statements
of the group and the Bank are presented in Taka which is the Banks functional and presentation currency.
b) Foreign currencies translation
Foreign currency transactions are converted into equivalent Taka using the ruling exchange rates on the dates of
respective transactions as per BAS-21 The Effects of Changes in Foreign Exchange Rates. Foreign currency
balances held in US Dollar are converted into Taka at weighted average rate of inter-bank market as determined
by Bangladesh Bank on the closing date of every month. Balances held in foreign currencies other than US Dollar
are converted into equivalent US Dollar at buying rates of New York closing of the previous day and converted
into Taka equivalent.
Assets and liabilities & income and expenses of Off-shore Banking Units have been converted into Taka currency
@ US$1 = Taka 79.8499 (closing rate as at 31st December 2012) and Tk.81.8532 (average rate which represents
the year end).
c) Commitments
Commitments for outstanding forward foreign exchange contracts disclosed in these financial statements are
translated at contracted rates. Contingent liabilities / commitments for letters of credit and letters of guarantee
denominated in foreign currencies are expressed in Taka terms at the rates of exchange ruling on the balance
sheet date.
d) Translation gains and losses
The resulting exchange transaction gains and losses are included in the profit and loss account, except those
arising on the translation of net investment in foreign subsidiary.

e) Foreign operations
The results and financial position of the Groups operations whose functional currency is not Bangladeshi Taka
are translated into Bangladeshi Taka as follows:
i)
Assets and liabilities are translated at the exchange rate ruling at the balance sheet date;
ii)
Income and expenses in the income statement are translated at an average rate approximating the
exchange rates at the year end;
iii)
Resulting exchange differences are recognized as a separate component of equity.
iv)
As per BAS 21 Foreign Currency Transactions, foreign currency denominated non-monetary items of
the OBUs are translated at historical rate, as the OBUs are considered as an integral part of the Banks
operation not a foreign operation due to specific regulations governing the OBU and its unique nature.
f) Consolidation of Financial Statements of foreign operations

Consolidation, foreign exchange differences arising from the translation of net investments in foreign entities, as
well as any borrowings are taken into capital reserve. When a foreign operation is disposed of, such currency
translation differences are recognized in the income statement as part of the gain or loss on disposal.
2.1.5
Statement of cash flows

Statement of cash flows have been prepared in accordance with the Bangladesh Accounting Standard-7
Statement of Cash Flows under direct method as recommended in the BRPD Circular No. 14, dated June 25,
2003 issued by the Banking Regulation & Policy Department of Bangladesh Bank.
2.1.6
Liquidity statement
The liquidity statement of assets and liabilities as on the reporting date has been prepared on residual maturity
term as per the following basis [Annexure-I and I(1)].
i)
Balance with other Banks and financial institutions, money at call and short notice, etc. are on the basis
of their maturity term;
ii)
Investments are on the basis of their respective maturity;
iii)
Loans and advances / investments are on the basis of their repayment schedule;
iv)
v)
Fixed assets are on the basis of their useful lives;

Other assets are on the basis of their realization / amortization;
vi)
Borrowing from other Banks, financial institutions and agents, etc. are as per their maturity / repayment
terms;
vii)
Deposits and other accounts are on the basis of their maturity term and past trend of withdrawal by the
depositors;
Provisions and other liabilities are on the basis of their payment / adjustments schedule.
viii)
2.1.7
Reporting period
These financial statements cover one calendar year from 1 January to 31 December 2012.
2.1.8
Offsetting
Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when there
is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or
realize the asset and settle the liability simultaneously (note-9a, 13a.1, 24a, 25a.1).

2.1.9
Restatement
In order to comply with the Bangladesh Accounting Standards (BAS-8), Accounting Policies, Changes in
Accounting Estimates and Errors. As per the standard it requires to restate the interest income/profit for Taka
28,053,160 of 2011 (note 22a) and the retained earnings as on 01.01.2011 by Taka 15,696,557 to show the
retrospective effect that has occurred for the relevant year of transaction. Consequently, the above amount was
adjusted with interest/profit suspense account.
2.2
Assets and basis of their valuation
2.2.1
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.
2.2.2
Loans, advances and lease / investments

a)
Loans and advances are stated in the balance sheet on gross basis.
b)
Interest / profit is calculated on a daily product basis but charged and accounted for on accrual basis.
Interest / profit on classified loans and advances / investments is kept in suspense account as per
Bangladesh Bank instructions and such interest / profit is not accounted for as income until realised
from borrowers [note - 7a.10 (x)]. Interest / profit is not charged on bad and loss loans / investments
as per guidelines of Bangladesh Bank. Records of such interest amounts are kept in separate
memorandum accounts.
c)
Commission and discounts on bills purchased and discounted are recognized at the time of
realization.
d)
Provision for loans and advances / investments is made on the basis of year-end review by the
management following instructions contained in Bangladesh Bank BCD Circular no. 34 dated
16 November 1989, BCD Circular no. 20 dated 27 December 1994, BCD Circular no. 12 dated 4
September 1995, BRPD Circular no. 16 dated 6 December 1998, BRPD Circular no. 9 dated 14 May
2001, BRPD Circular no.02 of February 2005, BRPD Circular no. 09 of August 2005 ,BRPD Circular
no. 17 dated 06 December 2005,BRPD circular no.32 dated 27 October 2010, BRPD Circular no.14
dated 23.09.2012 and BRPD Circular no.19 dated 27.12.2012. The provision rates are given below:
Particulars
General provision on unclassified general loans and advances / investments
General provision on unclassified small enterprise financing
Rate
1%
0.25%
General provision on interest receivable on loans / investments
1%
General provision on unclassified loans / investments for housing finance,

loans for professionals to set-up business and loans to share business
2%
General provision on unclassified consumer financing other than housing

finance, loan for professionals and loans to share business
5%
General provision on special mention account
5%
Specific provision on substandard loans and advances / investments
20%
Specific provision on doubtful loans and advances / investments
50%
Specific provision on bad / loss loans and advances / investments
100%

2.2.3
e)
Loans and advances / investments are written off to the extent that (i) there is no realistic prospect of
recovery, (ii) and against which legal cases are pending for more than five years as per guidelines of
Bangladesh Bank. These write off however will not undermine / affect the claim amount against the
borrower. Detailed memorandum records for all such write off accounts are meticulously maintained
and followed up.
f)
Amounts receivable on credit cards are included in advances to customers at the amounts expected
to be recovered.
Investments
All investment securities are initially recognised at cost, being fair value of the consideration given, including
acquisition charges associated with the investment. Premiums are amortized and discounts accredited, using the
effective yield method and are taken to discount income. The valuation method of investments used are:
Held to maturity (HTM)
Investments which have fixed or determinable payments, and are intended to be held to maturity, other than
those that meet the definition of held at amortized cost-others are classified as held to maturity. Investment
(HTM)-BHBFC is shown in the financial statements at cost price.
Held for trading (HFT)
Investments classified in this category are acquired principally for the purpose of selling or repurchasing -in shorttrading or if designated as such by the management. After initial recognition, investments are measured at fair
value and any change in the fair value is recognised in the statement of income for the period in which it arises.
These investments are subsequently revalued at current market value on weekly basis as per Bangladesh Bank
Guideline. Revaluation gain has been shown in revaluation reserve account & revaluation loss has been shown
in Profit & Loss account.
Value of investments has been enumerated as follows :
Items
Applicable accounting value
Government treasury bills-HTM
Amortized value
Government treasury bills-HFT
Market value
Government treasury bonds-HTM
Amortized value
Government treasury bonds-HFT
Market value
Prize bond
At cost
BHBFCs-debenture
At cost
Investment in listed securities

These securities are bought and held primarily for the purpose of selling them in future or hold for dividend
income. These are reported at cost. Unrealized gains are not recognized in the profit and loss account. But
provision for diminution in value of investment is provided in the financial statements which market price is below
the cost price of investment as per Bangladesh Bank guideline (note-13a).
Investment in unquoted securities
Investment in unlisted securities is reported at cost under cost method. Adjustment is given for any shortage of
book value over cost for determining the carrying amount of investment in unlisted securities.
Investments in subsidiary
Investment in subsidiaries is accounted for under the cost method of accounting in the Banks financial statements
in accordance with the Bangladesh Accounting Standard no-28. Accordingly, investments in subsidiaries are
stated in the Banks balance sheet at cost, less impairment losses if any.

2.2.4

Property, plant & equipment are recognized if it is probable that future economic benefits associated with the
assets will flow to the Bank and the cost of the assets can be reliably measured.
a)
All fixed assets are stated at cost less accumulated depreciation as per BAS-16 Property, Plant
and Equipment. The cost of acquisition of an asset comprises its purchase price and any directly
attributable cost of bringing the asset to its working condition for its intended use inclusive of inward
freight, duties and non-refundable taxes.
b)
The Bank recognises in the carrying amount of an item of property, plant and equipment the cost of
replacing part of such an item when that cost is incurred if it is probable that the future economic benefits
embodied with the item will flow to the company and the cost of the item can be measured reliably.
Expenditure incurred after the assets have been put into operation, such as repairs and maintenance,
is normally charged off as revenue expenditure in the period in which it is incurred.
c)
Depreciation is charged for the year at the following rates on reducing balance method on all fixed
assets other than vehicles, software and all fixed assets of ATM related on which straight line
depreciation method is followed and no depreciation is charged on land:
Category of fixed assets
Land
Building
2.2.5
Rate
Nil
2.50%
Furniture and fixtures
10%
Office equipment
20%
Library books
20%
Vehicles (straight line)
20%
Category of fixed assets (ATM Assets)
Rate
Furniture and fixtures (straight line)
10%
Office equipment (straight line)
20%
d)
For additions during the year, depreciation is charged for the remaining days of the year and for
disposal depreciation is charged up to the date of disposal.
e)
On disposal of fixed assets, the cost and accumulated depreciation are eliminated from the fixed assets
schedule and gain or loss on such disposal is reflected in the income statement, which is determined
with reference to the net book value of the assets and net sale proceeds.
f)
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying
asset have been capitalized as part of the cost of the asset as per BAS-23.
g)
Leasehold properties are recorded at present value of minimum lease payments or fair market value,
whichever is lower as per the provisions of BAS-17. The carrying value of leasehold properties is
amortized over the remaining lease term or useful of leasehold property, whichever is lower.
Intangible assets
a)
An intangible asset is recognized if it is probable that the future economic benefits that are attributable
to the asset will flow to the entity and the cost of the assets can be measured reliably.
b)
Software represents the value of computer application software licensed for use of the Bank, other
than software applied to the operation software system of computers. Intangible assets are carried at
its cost, less accumulated amortization and any impairment losses.

Initial cost comprises license fees paid at the time of purchase and other directly attributable
expenditure that are incurred in customizing the software for its intended use.
2.2.6
c)
Expenditure incurred on software is capitalized only when it enhances and extends the economic
benefits of computer software beyond their original specifications and lives and such cost is recognized
as capital improvement and added to the original cost of software.
d)
Software is amortized using the straight line method over the estimated useful life of 10 (ten) years
commencing from the date of the application software is available for use over the best estimate of its
useful economic life.
Impairment of Assets:
The policy for all assets or cash-generating units for the purpose of assessing such assets for impairment is as
follows:
The Bank assesses at the end of each reporting period or more frequently if events or changes in circumstances
indicate that the carrying value of an asset may be impaired, whether there is any indication that an asset may
be impaired. If any such indication exits, or when an annual impairment testing for an asset is required, the
bank makes an estimate of the assets recoverable amount. When the carrying amount of an asset or cashgenerating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is
written down to its recoverable amount by debiting to profit & loss account.
Fixed assets are reviewed for impairment whenever events or charges in circumstances indicate that the carrying
amount of an asset may be impaired.
2.2.7
Investment properties
a)
b)
c)
2.2.8
Investment property is held to earn rentals or for capital appreciation or both and the future economic
benefits that are associated with the investment property but not sale in the ordinary course of
business.
Investment property is accounted for under cost model in the financial statements. Accordingly,
after recognition as an asset, the property is carried at its cost, less accumulated depreciation and
impairment loss.
Depreciation is provided on a reducing basis over the estimated life of the class of asset from the date
of purchase up to the date of disposal.
Other assets
Other assets include all balance sheet accounts not covered specifically in other areas of the supervisory activity
and such accounts may be quite insignificant in the overall financial condition of the Bank.
2.2.9
Securities purchased under re-sale agreement

Securities purchased under re-sale agreements are treated as collateralized lending and recorded at the
consideration paid and interest accrued thereon. The amount lent is shown as an asset either as loans and
advances to customers or loans to other banks.
The difference between purchase price and re-sale price is treated as interest received and accrued evenly over
the life of Repo agreement.
2.2.10
Receivables
Receivables are recognised when there is a contractual right to receive cash or another financial asset from
another entity.
2.2.11
Inventories
Inventories measured at the lower of cost and net realizable value.

2.2.12
Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessee as per BAS-17 Leases. All other leases are classified as operating leases
as per BAS-17 Leases.
The Bank as lessor
Amount due from lessees under finance leases are recorded as receivables at the amount of the Banks net
investment in the leases (note-7a.3). Finance lease income is allocated to accounting periods so as to reflect a
constant periodic rate of return on the banks net investment outstanding in respect of the leases.
The Bank as lessee
Assets held under finance leases are recognised as assets of the Bank at their fair value at the date of acquisition
or, if lower, at the present value of the minimum lease payments (note-9a). The corresponding liability to the lessor
is included in the balance sheet as a finance lease obligation (note-13a.9). Lease payments are apportioned
between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the
remaining balance of the liability. Finance charges are charged directly against income.
Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned
assets.
2.2.13
Non-banking assets:
There are no assets acquired in exchange for loan during the period of financial statements.
2.2.14
Reconciliation of inter-bank and inter-branch account

Accounts with regard to inter-bank (in Bangladesh and outside Bangladesh) are reconciled regularly and there
are no material differences which may affect the financial statements significantly.
Un-reconciled entries / balances in the case of inter-branch transactions as on the reporting date are not material.
2.3
Share capital
Ordinary shares are classified as equity when there is no contractual obligation to transfer cash or other financial
assets.
2.4
Statutory reserve
Bank Companies Act, 1991 requires the Bank to transfer 20% of its current years profit before tax to reserve until
such reserve equals to its paid up capital.
2.5
Revaluation reserve
When an assets carrying amount is increased as a result of a revaluation , the increase amount should be
credited directly to equity under the heading of revaluation surplus / reserve as per BAS-16: Property, Plant and
Equipment. The Bank revalued the assets of land and buildings during the year 2008 which are absolutely owned
by the Bank and the increase amount transferred to revaluation reserve. The tax effects on revaluation gain are
measured and recognised in the financial statements as per BAS-12: Income Taxes.
2.5.1
Minority interest in subsidiaries

Minority interest in business is an accounting concept that refers to the portion of a subsidiary corporations stock
that is not owned by the parent corporation. The magnitude of the minority interest in the subsidiary company is
always less than 50% of outstanding shares, else the corporation would cease to be a subsidiary of the parent.
Minority interest belongs to other investors and is reported on the consolidated balance sheet of the owning
company to reflect the claim on assets belonging to other, non-controlling shareholders. Also, minority interest is
reported on the consolidated income statement as a share of profit belonging to minority shareholders.

2.5.2
Prime bank sub-ordinated bond

Prime Bank issued unsecured non-convertible sub-ordinated bond on 07 February 2010 after obtained approval
from Bangladesh Bank and Securities and Exchange Commission vide their letter # BRPD (BIC) 661 / 14B (P)
/2009-319, dated 31 December 2009 and SEC / CI / CPLC-205 / 09 / 282, dated December 23, 2009 respectively.
The Subordinated Bond is counted towards Tier- II capital of the Bank. The bond shall bear interest @ Tk.11.50%
per annum, payable semi annually in arrear on 07 August and 07 February of each year.
2.5.3
Share premium
Share premium is the capital that the Bank raises upon issuing shares that is in excess of the nominal value
of the shares. The share premium may be applied by the Bank in paying up unissued shares to be allotted to
members as fully paid bonus shares or writing-off the preliminary expenses of the Bank or the expenses of or
the commission paid or discount allowed on, any issue of shares or debentures of the Bank or in providing for
the premium payable on the redemption of any redeemable preference shares or of any debentures of the Bank.
Share premium was shown in accounts after deduction of income tax @3% on share premium as per finance
Act-2010.
2.7

Deposits by customers and banks are recognised when the Bank enters into contractual provisions of the
arrangements with the counterparties, which is generally on trade date, and initially measured at the consideration
received.
2.8

Borrowed funds include call money deposits, borrowings, re-finance borrowings and other term borrowings from
banks. These are stated in the balance sheet at amounts payable. Interest paid / payable on these borrowings is
charged to the profit & loss account.
Disclosures of borrowings against Repo are shown in notes- 6a.11 to 6a.12 and 46
2.9
Basis for valuation of liabilities and provisions
2.9.1
Provision for current taxation

Provision for current income tax has been made as per prescribed rate in the Finance Ordinance, 2012 on the
accounting profit made by the Bank after considering some of the add backs to income and disallowances of
expenditure as per income tax laws in compliance with BAS-12 Income Taxes.
2.9.2
Deferred taxation
Deferred tax is accounted for in accordance with BAS 12: Income Taxes. Deferred tax normally results in a
liability being recognized within the Statement of Financial Position. BAS 12 defines a deferred tax liability as
being the amount of income tax payable in future periods. Deferred tax is recognized on differences between
the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used
in the computation of taxable profit, and are accounted for using the balance sheet liability method. Deferred tax
liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to
the extent that it is probable that taxable profits will be available against which deductible temporary differences,
unused tax losses or unused tax credits can be utilized. Such assets and liabilities are not recognized if the
temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of
other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred
tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes levied by the same taxation authority and the company
intends to settle its current tax assets and liabilities on a net basis.

2.9.3
Benefits to the employees

The retirement benefits accrued for the employees of the Bank as on reporting date have been accounted
for in accordance with the provisions of Bangladesh Accounting Standard-19, Employee Benefit. Bases of
enumerating the retirement benefit schemes operated by the Bank are outlined below:
a) Provident fund
Provident fund benefits are given to the permanent employees of the Bank in accordance with Banks service
rules. Accordingly a trust deed and provident fund rules were prepared. The Commissioner of Income Tax, Taxes
Zone - 5, Dhaka has approved the Provident Fund as a recognized provident fund within the meaning of section
2(52), read with the provisions of part - B of the First Schedule of Income Tax Ordinance 1984. The recognition
took effect from 07 July 1997. The Fund is operated by a Board of Trustees consisting six members (03 members
from management and other 03 members from the Board of Directors) of the Bank. All confirmed employees of
the Bank are contributing 10% of their basic salary as subscription to the Fund. The Bank also contributes equal
amount of the employees contribution. Interest earned from the investments is credited to the members account
on yearly basis.
b) Gratuity fund
The Bank operates an unfunded gratuity scheme on Closed Plan Basis, in respect of which provision is made
annually covering all its permanent eligible employees. Actuarial valuation of gratuity scheme has been made to
assess the adequacy of the liabilities provided for the scheme as per BAS-19 Employee Benefits.
c) Welfare fund
Prime Banks employees welfare fund is subscribed by monthly contribution of the employees. The Bank also
contributes to the Fund from time to time. The Fund has been established to provide medical support and
coverage in the event of accidental death or permanent disabilities of the employees. Disbursement of loan from
the fund is done as per rules for employees welfare fund. Retirement benefit are also provided from this fund.
d) Incentive bonus
10% of net profit after tax is given to the employees in every year as incentive bonus. This bonus amount is being
distributed among the employees based on their performance. The bonus amount is paid annually, normally first
quarter of every following year and the costs are accounted for in the period to which it relates.
2.9.4
Provision for liabilities

A provision is recognised in the balance sheet when the Bank has legal or constructive obligation as a result
of a past event and it is probable that an outflow of economic benefit will be required to settle the obligations, in
accordance with the BAS 37 Provisions, Contingent Liabilities and Contingent Assets.
2.9.5
Provision for Off-balance sheet exposures

Off-balance sheet items have been disclosed under contingent liabilities and other commitments as per
Bangladesh Bank guidelines. As per BRPD Circular # 14, dated September 23, 2012, banks are advised to
maintain provision @1% against off-balance sheet exposures (L/C and Guarantee) in addition to the existing
provisioning arrangement.
2.9.6
Provision for nostro accounts

As per instructions contained in the circular letter no. FEPD (FEMO) / 01 / 2005-677 dated 13 September 2005
issued by Foreign Exchange Policy Department of Bangladesh Bank, provision is to be maintained the unreconciled debit balance of nostro account more than 3 months as on the reporting date in these financials. Since
there is no unreconciled entries which are outstanding more than 3 months provision has not been made.

2.10
Revenue recognition
2.10.1
Interest income
In terms of the provisions of the BAS-18 Revenue, the interest income is recognised on accrual basis. Interest on
loans and advances ceases to be taken into income when such advances are classified. It is then kept in interest
suspense. After the loans / investments is classified as bad, interest / profit ceases to apply and recorded in a
memorandum account. Interest/Profit on classified advances/investment is accounted for on a cash receipt basis.
2.10.2
Profit on investment (Islamic Banking Branches)

Mark-up on investment is taken into income account proportionately from profit receivable account. Overdue
charge / compensation on classified investments is transferred to profit suspense account instead of income
account.
2.10.3
Investment income
Interest income on investments is recognised on accrual basis. Capital gain on investments in shares is also
included in investment income. Capital gain is recognised when it is realised.
2.10.4
Fees and commission income

Fees and commission income arising on services provided by the Bank are recognised on a cash basis.
Commission charged to customers on letters of credit and letters of guarantee is credited to income at the time
of effecting the transactions.
2.10.5
Dividend income on shares

Dividend income on shares is recognised during the period in which it is declared and ascertained.
2.10.6
Interest paid and other expenses (Conventional Banking Branches)

In terms of the provisions of BAS-1 Presentation of Financial Statements interest and other expenses are
recognised on accrual basis.
2.10.7
Profit paid on deposits (Islamic Banking Branches)

Profit paid to mudaraba depositors is recognised on accrual basis as per provisional rate. However, the final profit
is determined and to be paid to the depositors as per Annexure-F.
2.10.8
Dividend payments
Interim dividend is recognised when they are paid to shareholders. Final dividend is recognized when it is
approved by the shareholders.
The proposed dividend for the year 2012 has not been recognized as a liability in the balance sheet in accordance
with the BAS-10 : Events After the Reporting Period.
Dividend payable to the Banks shareholders is recognized as a liability and deducted from the shareholders
equity in the period in which the shareholders right to receive payment is established.
2.11
Risk management
The risk of Prime Bank Limited is defined as the possibility of losses, financial or otherwise. The risk management
of the Bank covers core risk areas of banking viz. credit risk, liquidity risk, market risk that includes foreign
exchange risk, interest rate risk, equity risk, operational risk and reputation risk arising from money laundering
incidences. The prime objective of the risk management is that the Bank evaluates and takes well calculative
business risks and thereby safeguards the Banks capital, its financial resources and profitability from various
business risks through its own measures and through implementing Bangladesh Banks guidelines and following
some of the best practices as under:

2.11.1
Credit risk
It arises mainly from 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.
The Bank has segregated duties of the officers / executives involved in credit related activities. A separate
Corporate Division has been formed at Head Office which is entrusted with the duties of maintaining effective
relationship with the customers, marketing of credit products, exploring new business opportunities, etc. Moreover,
credit approval, administration, monitoring and recovery functions have been segregated. For this purpose, three
separate units have been formed within the credit division. These are (a) Credit Risk Management Unit (b) Credit
Administration Unit and (c) Credit Monitoring and Recovery Unit. Credit Risk Management Unit is entrusted with
the duties of maintaining asset quality, assessing risk in lending to a particular customer, sanctioning credit,
formulating policy / strategy for lending operation, etc. Adequate provision has been made on classified loans /
investments is shown in note-13a.3.
A thorough assessment is done before sanction of any credit facility at Credit Risk Management Unit. The risk
assessment includes borrower risk analysis, financial analysis, industry analysis, historical performance of the
customer, security of the proposed credit facility, etc. The assessment process at Head Office starts at Corporate
Division by the Relationship Manager / Officer and ends at Credit Risk Management Unit when it is approved /
declined by the competent authority. Credit approval authority has been delegated to the individual executives.
Proposals beyond their delegation are approved / declined by the Executive Committee and / or the Management
of the Bank. Concentration of credit risk is shown in note -7a. 5.
In determining Single borrower / Large loan limit, the instructions of Bangladesh Bank are strictly followed.
Internal audit is conducted at periodical intervals to ensure compliance of Banks and Regulatory polices. Loans
are classified as per Bangladesh Banks guidelines. Concentration of single borrower / large loan limit is shown
in note-7a.9.
2.11.2
Liquidity risk
The object of liquidity risk management is to ensure that all foreseeable funding commitments and deposit
withdrawals can be met when due. To this end, the Bank is maintaining a diversified and stable funding base
comprising of core retail and corporate deposits and institutional balance (note - 12a). Management of liquidity
and funding is carried out by Treasury Department under approved policy guidelines. Treasury front office is
supported by a very structured Mid office and Back office. The Liquidity management is monitored by Asset
Liability Committee (ALCO) on a regular basis. A written contingency plan is in place to manage extreme
situation.
2.11.3
Market risk
The exposure of market risk of the Bank is restricted to foreign exchange risk, interest rate risk and equity risk.
Foreign exchange risk
Foreign exchange risk is defined as the potential change in earnings due to change in market prices. The foreign
exchange risk of the Bank is minimal as all the transactions are carried out on behalf of the customers against
underlying L/C commitments and other remittance requirements. No foreign exchange dealing on Banks account
was conducted during the year.
Treasury Department independently conducts the transactions and the back office of treasury is responsible for
verification of the deals and passing of their entries in the books of account. All foreign exchange transactions
are revalued at Mark-to-Market rate as determined by Bangladesh Bank at the month-end. All Nostro accounts
are reconciled on a monthly basis and outstanding entry beyond 30 days is reviewed by the management for its
settlement. The position maintained by the bank at the end of day was within the stipulated limit prescribed by
the Bangladesh Bank.

Interest rate risk
Interest rate risk may arise either from trading portfolio or non-trading portfolio. The trading portfolio of the Bank
consists of Government treasury bills of 28 days maturity. The short-term movement in interest rate is negligible
or nil. Interest rate risk of non-trading business arises from mismatches between the future yield of an asset and
its funding cost. Asset Liability Committee (ALCO) monitors the interest rate movement on a regular basis.
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. The market value of equities held was however higher than
the cost price at the balance sheet date (Annexure-B).
2.11.4
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. For mitigating the risks, the Bank has a designated Chief Compliance
Officer at Head Office and Compliance Officers at branches, who independently review the transactions of the
accounts to verify suspicious transactions. Manuals for prevention of money laundering have been established
and transaction profile has been introduced. Training is continuously given to all the category of Officers and
Executives for developing awareness and skill for identifying suspicious activities / transactions.
2.11.5
Operational risk
Operational risk may arise from error and fraud due to lack of internal control and compliance. Management
through Internal Control and Compliance Division controls operational procedure of the Bank. Internal Control
and Compliance Division undertakes periodical and special audit of the branches and departments at the Head
Office for review of the operation and compliance of statutory requirements. The Audit Committee of the Board
subsequently reviews the reports of the Internal Control and Compliance Division.
2.12
Earnings per share

Basic earnings per share
Basic earnings per share has been calculated in accordance with BAS 33 Earnings per Share which has been
shown on the face of the profit and loss account. This has been calculated by dividing the basic earnings by the
weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share
No diluted earnings per share is required to be calculated for the year as there was no scope for dilution during
the year under review.
2.13
Events after the reporting period

Where necessary, all the material events after the reporting period have been considered and appropriate
adjustment / disclosures have been made in the financial statements.
2.14
Directors responsibility on statement

The Board of Directors takes the responsibility for the preparation and presentation of these financial
statements.
2.15
Memorandum items
Memorandum items are maintained to have control over all items of importance and for such transactions where
the Bank has only a business responsibility and no legal commitment. Bills for collection, Stock of travelers
cheques, savings certificates, wage earners bonds and other fall under the memorandum items. However, Bills
for Collection is shown under contingent liabilities as per Bangladesh Banks format of reporting.

2.16
Related party transaction

Related party transaction is a transfer of resources, services or obligation between related parties, regardless of
whether a price is charged. Detail of related parties transaction are given in note-48.
2.17
Information about business and geographical segments

Segmental information is presented in respect of the Groups business and of Prime Bank Limited.
Business segments
Business segments report consists of products and services whose risks and returns are different from those of
other business segments. These segments comprise Conventional Banking including Off-shore Banking Units,
Islamic Banking, Prime Bank Investment Limited and Prime Bank Securities Limited. Business segments report
are shown in Annexure-H.
Geographical segments
Geographical segments report consists of products and services within a particular economic environment
where risks and returns are different from those of other economic environments. These segments comprise
of Prime Bank Limited, Off-shore Banking Units, Prime Bank Investment limited, Prime Bank Securities Limited,
Prime Exchange Co. Pte. Ltd, Singapore, PBL Exchange (UK) Ltd. and PBL Finance (Hong Kong) Limited.
Geographical segments report are shown in Annexure-H.
Inter-segment transactions are generally based on inter-branch fund transfer measures as determined by the
management. Income, expenses, assets and liabilities are specifically identified with individual segments. Based
on such allocation, segmental balance sheet as on 31 December 2012 and segmental profit and loss account for
the year ended 31 December 2012 have been prepared.
2.18
Compliance report on 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). While preparing the
financial statements, Prime Bank applied all the applicable of BAS and BFRS as adopted by ICAB. Details are
given below:
Name of the BAS
Presentation of Financial Statements
BAS no.
Status
Applied *
Inventories
Applied
Statement of Cash Flows
Applied
Accounting Policies, Changes in Accounting Estimates and Errors
Applied
10
Applied
Construction Contracts
11
N/A
Income Taxes
12
Applied
16
Applied
Leases
17
Applied
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 Rates
21
Applied
Borrowing Costs
23
Applied
Related Party Disclosures
24
Applied
Accounting and Reporting by Retirement Benefit Plans
26
N/A **

Name of the BAS
BAS no.
Status
Consolidated and Separate Financial Statements
27
Applied
Investments in Associates
28
Applied
Interests in Joint Ventures
31
N/A
Financial Instruments: Presentation
32
Applied *
Earnings per share
33
Applied
Interim Financial Reporting
34
Applied ***
36
Applied
Provisions, Contingent Liabilities and Contingent Assets
37
Applied
Intangible Assets
38
Applied
Financial Instruments: Recognition and Measurement
39
Applied *
Investment Property
40
Applied
Agriculture
41
N/A
Name of the BFRS
BFRS no.
Status
First time adoption
N/A
Share Based Payment
N/A
Business Combinations
N/A
Insurance Contract
N/A
Non-current Assets Held for Sale and Discontinued Operations
N/A
Exploration for and Evaluation of Mineral Resources
N/A
Financial Instruments: Disclosure
Applied
Operating Segments
Applied
N/A
Not Applicable
* In order to comply with certain specific rules and regulations of the local Central Bank (Bangladesh Bank)
which are different to BAS/BFRS, some of the requirements specified in these BAS/BFRSs are not applied.
Refer below for such recognition and measurement differences that are most relevant and material to the
Bank and the Group.
** This Standard regards a retirement benefit plan as a reporting entity separate from the employers of the
participants in the plan. Therefore, it is not applicable for the Banks annual report as it is the employer and
not the retirement benefit plan itself.
*** The objective of BAS 34 is to prescribe the minimum content of an interim financial report and to prescribe
the principles for recognition and measurement in complete or condensed financial statements for an interim
period and hence it is not applicable for annual financial statements. However, the Bank being a listed entity in
Dhaka and Chittagong Stock Exchanges regularly publishes Interim Financial Report complying with BAS 34.
New and amended standards adopted by the Bank and the Group
There are no new standards, amendments to standards and interpretations that are effective for the first time for
the financial year ended 31 December 2012 that have a significant impact on the Group and the Bank.
New and amended standards and interpretations not yet adopted by the Bank and the Group
A number of new standards, amendments to standards and interpretations are effective for annual periods
beginning from 1 January 2013 or later, and have not been applied in preparing these consolidated financial
statements. None of these is expected to have a significant effect on the consolidated financial statements of
the Group and the Bank. Although International Accounting Standards Board (IASB) has issued a new standard
(IFRS 9) along with related amendments to existing standards (IAS/BAS 32, 39) but none of these have been
adopted and/or endorsed locally as BAS/BFRS and as such any possible impact could not be determined.

Difference between BAS/BFRS and Bangladesh Bank Regulation:
Provision for loans and advances
BAS/BFRS: As per BAS 39 an entity should start the impairment assessment of loans and advances by
considering whether objective evidence of impairment exists for those loans that are individually significant. For
loans and advances which are not individually significant, the assessment can be performed on an individual or
collective (portfolio) basis. Such provision shall be netted off against loans and advances.
As per BRPD Circular no. 14 & 15 dated 23 September 2012 and BRPD Circular no. 19 dated 27 December 2012,
a general provision at 0.25% to 5% under different categories of unclassified loans (standard/ SMA loans) should
be maintained regardless of objective evidence of impairment. And, specific provision for sub-standard loans,
doubtful loans and bad losses should be provided at 20%, 50% and 100% respectively for loans and advances
depending on the duration of overdue. Also, a general provision at 1% should be provided for all off-balance
sheet exposures. Such provision policies are not specifically in line with those prescribed by BAS 39. Also for
disclosure such provision shall be shown as liability as opposed to netting off against loans and advances.
Repo and reverse repo transaction of Government securities (i.e. treasury bills and bonds)
BAS/BFRS: When an entity sells a financial asset and simultaneously enters into an agreement to repurchase
the asset (or a similar asset) at a fixed price on a future date (REPO), the arrangement is accounted for as
a deposit as opposed to a sale, and the underlying asset continues to be recognised in the entitys financial
statements. Such transaction do not satisfy derecognition criteria specified in BAS 39. Same rule applies to the
opposite side of the transaction (Reverse REPO).
As per Bangladesh Bank circulars/guidelines, when a bank sells a financial asset and simultaneously enters
into an agreement to repurchase the asset (or a similar asset) at a fixed price on a future date (REPO), the
arrangement is accounted for as a normal sales transactions and the financial assets should be derecognised in
the sellers book and recognised in the buyers book.
Cash and cash equivalent
BAS/BFRS: As per BAS 7 cash and cash equivalents are short-term, highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Therefore,
some items like Balance with Bangladesh Bank on account of CRR/SLR are not part of cash and cash equivalent
as those are not readily available.
As per Bangladesh Bank circulars/guidelines, balance with Bangladesh Bank is part of cash and cash equivalent
regardless of any restriction.
2.19
Approval of financial statements

The financial statements were approved by the Board of directors on February 28,2013
2.20
General
a)
These financial statements are presented in Taka, which is the Banks functional currency. Figures appearing
in these financial statements have been rounded off to the nearest Taka.
b)
The expenses, irrespective of capital or revenue nature, accrued / due but not paid have been provided for
in the books of the Bank.
c)
Figures of previous year have been rearranged whenever necessary to conform to current years
presentation.

2012
3
ii
Consolidated cash
Cash in hand
Prime Bank Limited (note-3a.1)
PBL Exchange (UK) Ltd.
1,464,103,675
41,057
10,817
10,823,556
1,474,979,105
14,117,939,937
14,117,939,937
16,187,166,252
12,032,573,269
12,032,573,269
13,507,552,374
1,971,441,919
88,061,657
2,059,503,576
1,414,850,909
49,252,766
1,464,103,675
10,816,492,170
2,881,505,675
13,697,997,845
Sonali Bank as agent of Bangladesh Bank (Local currency)
419,942,092
14,117,939,937
16,177,443,513
Reconciliation statements regarding Bangladesh Bank balance are given Annexure-A-1
9,433,960,795
1,854,968,231
11,288,929,026
743,644,243
12,032,573,269
13,496,676,944
Balance with Bangladesh Bank and its agent bank(s)

Cash of the Bank
3a.1
Cash in hand
In local currency
In foreign currency
3a.3
2011
2,059,503,576
7,346
4,895
9,710,498
2,069,226,315
3a
3a.2
Amount in Taka
Balance with Bangladesh Bank and its agent bank(s)

In local currency
In foreign currency
Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR)

Cash Reserve Requirement and Statutory Liquidity Ratio have been calculated and maintained in accordance with
section 33 of Bank Companies Act, 1991 and MPD circular nos.05, dated December 01, 2010.
The Cash Reserve Requirement on the Banks time and demand liabilities at the rate of 6% has been calculated and
maintained with Bangladesh Bank in current account and 19% Statutory Liquidity Ratio for conventional banking and
11.50% Statutory Liquidity Ratio for Islamic banking , including CRR, on the same liabilities has also been maintained
in the form of treasury bills, bonds and debentures including FC balance with Bangladesh Bank. Both the reserves
maintained by the Bank are in excess of the statutory requirements, as shown below:
a) Cash Reserve Requirement
Required reserve
Actual reserve maintained (note-3a.2)
Surplus / (deficit)
b) Statutory Liquidity Ratio
Required reserve (including CRR)

Actual reserve maintained (including CRR) - note-3a.5
Surplus / (dificit)
Total required reserve
Actual reserve held
Total surplus
3a.4
Maturity grouping of cash

Payable on demand
Up to 1 month
Over 3 months but not more than 6 months
Over 5 years
10,711,548,230
10,816,492,170
104,943,940
9,102,226,820
9,433,960,795
331,733,975
32,672,594,350
61,114,141,480
28,441,547,130
32,672,594,350
61,114,141,480
28,441,547,130
27,606,171,980
47,892,328,749
20,286,156,769
27,606,171,980
47,892,328,749
20,286,156,769
5,399,669,573
10,777,773,940
16,177,443,513
4,279,100,959
9,217,575,985
13,496,676,944

2012
3a.5
Held for Statutory Liquidity Ratio

Cash in hand (note -3a.1)
Balance with Bangladesh Bank and its agent bank(s) (note-3a.2)
Government securities (note-6a.ii)
Government bonds (note-6a.ii)
Bangladesh Bank Bills (note-6a.ii)
Consolidated balance with other banks and financial institutions

In Bangladesh
Less: Inter-company transaction
Outside Bangladesh
4a
Balance with other banks and financial institutions of the Bank

In Bangladesh (note-4a.1)
Outside Bangladesh (note-4a.2)
4a.1
In Bangladesh
Current account
Agrani Bank Ltd., Principal Branch, Dhaka
Agrani Bank Ltd., Purana Paltan Branch, Dhaka
Agrani Bank Ltd., Bhairab Bazar, Kishoregonj
Agrani Bank Ltd., Mirzapur Branch, Mirzapur
AB Bank Ltd. Principal Branch, Dhaka
The City Bank Ltd, Dhaka
Dutch-Bangla Bank Ltd., Head office, Dhaka
Exim Bank Ltd., Motijheel Branch, Dhaka
Islami Bank BD Ltd., Local Office, Dhaka
Islami Bank BD Ltd., Jhikorgacha
Janata Bank Ltd., Local Office, Dhaka
Janata Bank Ltd., Ishwardi Branch
Janata Bank Ltd., Companygonj Branch
Janata Bank Ltd., Corporate Branch, Bogra
National Bank Ltd., Rangpur Branch
Pubali Bank Ltd., Dhaka Stadium Branch, Dhaka
Rupali Bank Ltd. ,Motijheel Branch, Dhaka
Sonali Bank Ltd., Rangpur Branch
Sonali Bank Ltd., Pabna Branch
Sonali Bank Ltd., Sunamganj Branch
Sonali Bank Ltd., Dinajpur Branch
Sonali Bank Ltd., Local Office, Dhaka
Sonali Bank Ltd., Narayangonj
Sonali Bank Ltd., Companygonj Branch
Sonali Bank Ltd., Thakurgaon Branch
Sonali Bank Ltd., Fakirapool Branch, Dhaka
Sonali Bank Ltd., Faridpur Branch, Faridpur
Sonali Bank Ltd., Narsingdi Branch
Sonali Bank Ltd., Satkhira
Standard Chartered Bank, Bangladesh
United Commercial Bank Ltd., Principal Branch, Dhaka
Off-shore Banking Units
Uttara Bank Ltd., Local Office, Dhaka
Less: Off-shore Banking Units
Amount in Taka
2011
2,059,503,576
14,117,939,937
2,749,635,259
40,969,705,594
1,217,357,114
61,114,141,480
1,464,103,675
12,032,573,269
5,124,479,346
29,271,172,459
47,892,328,749
251,389,642
90,411,112
185,845
341,986,599
90,452,210
251,534,389
377,477,308
3,213,517
4,792,616
385,483,441
3,361,069
382,122,372
1,392,741,405
37,476,454
24,335,982
12,170,729
1,466,724,570
1,718,258,959
1,138,637,962
32,812,263
10,765,643
15,266,326
1,197,482,195
1,579,604,567
251,389,642
1,392,741,405
1,644,131,047
377,477,308
1,138,637,962
1,516,115,270
477,554
94,739
3,500,000
5,778,964
2,997,108
274,719
62,733,959
1,696,291
7,347,825
1,000
13,565,017
3,288,797
1,292
13,123,089
1,167,259
9,562,393
3,045,665
23,417,396
17,178,093
6,932,833
599,503
63,022
10,542,555
16,509,210
3,621,134
7,448,342
166,621,451
176,341
381,765,551
166,621,451
215,144,100
10,488,705
4,007,817
2,500,450
1,160,770
2,998,108
275,515
58,223,470
1,727,900
6,797,821
1,000
73,566,147
5,187,818
328
1,292
16,458
16,199,476
18,624,590
22,173,332
8,568,058
9,385,030
8,220,571
24,871,469
12,182,617
1,001,000
6,064,601
11,562,209
31,028,027
6,716,871
4,417,636
1,867,771
237,669,828
177,841
587,684,526
237,669,828
350,014,698

2012
Amount in Taka
2011
Special notice deposit accounts

Agrani Bank Ltd., Principal Branch, Dhaka
Agrani Bank Ltd., Takerhat Branch
ICB Islamic Bank Ltd., Principal Office, Motijheel, Dhaka
ICB Islamic Bank Ltd., Sylhet
Janata Bank Ltd., Local Office, Dhaka
National Bank Ltd., Narayanganj Branch, Dhaka
Sonali Bank Ltd., Bhairab Bazar, Kishoregonj
Social Islami Bank Ltd., Principal Branch, Dhaka
Savings accounts
Al Arafah Islami Bank Ltd., Dhaka
Bank Al Falah Ltd., Dhaka
Social Islami Bank Ltd., Principal Branch, Dhaka
Fixed deposits
4a.2
295,926
2,112
15,599
18,971
5,028,074
30,705,174
950
12,433
36,079,239
286,140
1,003,195
15,599
18,970
4,827,406
21,136,783
950
12,210
27,301,253
63,492
36,109
66,702
166,303
61,297
35,416
64,644
161,357
251,389,642
377,477,308
327,947
708,632
12,070,342
8,633,221
10,439,935
621,790
14,492,798
56,046,201
429,879
54,469,945
251,018
5,033,160
5,927,202
7,927,789
18,116,329
32,118,229
151,564,812
84,844
50,043,048
3,755,849
10,295,770
375,130
37,666,149
527,580,408
9,429,091
19,477,472
3,376,263
6,730,567
57,071,561
2,641,429
9,146,985
5,800,084
55,539,532
132,751,323
8,715,241
34,428,476
38,652,955
6,644,484
1,002,246
4,191,187
3,292,821
4,884,087
7,318,508
9,394,222
17,997,373
440,662
29,960,877
618,873
1,972,977
3,791,449
12,742,153
33,567,690
27,949,005
91,803,153
2,541
17,085,340
32,738,763
538,287
10,361,238
445,616,228
12,947,048
7,754,862
1,276,803
7,287,220
10,710,884
1,915,572
16,321,338
23,666,718
43,555,382
206,634,472
2,891,913
16,786
4,073,036
3,226,925
32,444,839
1,392,741,405
1,138,637,962
Outside Bangladesh (NOSTRO Accounts)

Current account
AB Bank Ltd., Mumbai, India
Banca Nazionale, del Lavoro, Rome, Italy
Bank of Bhutan Phuentsholing, Bhutan
The Bank of Tokyo Mitsubishi Ltd., Japan
SMBC, Tokyo, Japan
Citibank N.A., Mumbai, India
Citibank N.A., London , UK
Citibank N.A., New York, USA
Citibank N.A., New York, USA (Off-shore Banking)
Commerz Bank AG, Frankfurt , Germany (EURO)
Commerz Bank AG, Frankfurt , Germany (US$)
Commonwealth Bank of Australia, Australia
Credit Suisse (First Boston), Switzerland
Habib American Bank, New York, USA
Habib Metropolitan Bank Ltd, Karachi
HDFC Bank Limited, Kolkata, India
HSBC Bank USA, New York, USA
HSBC Bank Middle East Ltd., Karachi, Pakistan
HSBC PLC, London, UK
HANA Bank, Seoul
ICICI Bank Ltd, Mumbai, India
Intesa Sanpaolo SPA, Milano, Italy
J. P. Morgan Chase Bank, New York
Mashreq Bank PSC, New York, USA
Mashreq Bank PSC, Mumbai, India
National Westminister Bank, London, UK
The National Commercial Bank, Jeddah
Nepal Bangladesh Bank Ltd., Kathmandu, Nepal
Peoples Bank, Colombo, Sri Lanka
Skandinaviska Enskilda Banken, Sweden
Sonali Bank, Kolkata, India
Standard Chartered Bank, Kolkata, India
Standard Chartered Bank, New York, USA
Standard Chartered Bank, Singapore
Standard Chartered Bank, Frankfurt, Germany
State Bank of India, Kolkata
The Bank of Nova Scotia, Toronto, Canada
Unicredito Italiano SPA, Milano, Italy
Wells Fargo Bank N. A. Newyork
(Annexure -A)

2012
4a.3
Maturity grouping of balance with other banks and financial institutions

Payable on demand
Up to 1 month
Over 5 years
Consolidated investments
Government
Prime Bank Limited (note-6a)
Others
Less: Inter-company transaction
6a
Amount in Taka
2011
1,607,885,505
16,630
36,079,239
149,673
1,644,131,047
1,488,652,660
16,136
27,301,253
145,221
1,516,115,270
44,936,697,967
44,936,697,967
34,395,651,805
34,395,651,805
4,733,737,225
1,399,569,819
741,051,850
6,874,358,894
3,808,530,984
3,065,827,910
48,002,525,877
4,776,646,818
1,441,557,511
696,472,977
6,914,677,306
3,794,500,832
3,120,176,474
37,515,828,279
9,939,151,576
35,007,440,491
4,723,843,125
49,670,435,192
17,022,719,665
17,390,298,140
4,759,280,818
39,172,298,623
1,075,511,325
381,038,068
1,293,085,866
2,749,635,259
1,217,357,114
483,460,154
393,210,802
4,247,808,390
5,124,479,346
-
5,105,900
40,964,599,694
40,969,705,594
44,936,697,967
2,634,000
29,268,538,459
29,271,172,459
34,395,651,805
Investments of the Bank

i) Investment classified as per Bangladesh Bank Circular:
Held for trading (HFT)
Held to maturity (HTM)
Other securities
ii) Investment classified as per nature:
a) Government securities:
28 days treasury bills
5 years treasury bills
30 days Bangladesh Bank bills
Government bonds:
Prize bonds
Government bonds - (note-6a.2)
Treasury Bill & Bond amounting to Tk. 2,625,785,597.52 was placed as lien against ALS from Bangladesh Bank on 30.12.2012

2012
b) Other investments:
Debentures of HBFC-bearing interest rate @ 5.5% (note-6a.3)
Dhaka Bank Subordinated Bond interest rate @ 11.65% (note-6a.4)
National Bank Subordinated Bond interest rate @ 11.50% (note-6a.5)
DBH Zero coupon bond interest rate @ 8.25% (note-6a.6)
IDLC Zero coupon bond interest rate @ 8.25% (note-6a.7)
Orascom bond interest rate @ 13.50% (note-6a.8)
Investment in subsidiaries (note-6a.9)
Shares (note-6a.10)
6a.1
Maturity grouping of investments

On demand
Up to 1 month
Over 5 years
6a.2
Amount in Taka
2011
15,000,000
171,430,361
201,661,111
54,663,022
18,152,329
150,112,500
3,808,530,984
314,186,918
4,733,737,225
49,670,435,192
20,000,000
171,595,403
201,661,111
151,813,187
50,402,795
200,150,000
3,794,500,832
186,523,490
4,776,646,818
39,172,298,623
4,539,349,166
615,376,253
955,636,877
1,022,318,981
15,098,785,391
27,438,968,524
49,670,435,192
721,734,628
418,719,985
1,752,799,503
2,920,653,204
9,334,444,098
24,023,947,205
39,172,298,623
850,000,000
6,652,563,435
18,007,844,578
5,779,949,329
3,702,083,149
34,992,440,491
850,000,000
925,083,228
8,305,142,769
4,264,474,884
3,025,597,258
17,370,298,139
2,168,556,000
2,656,291,708
677,658,330
469,653,165
5,972,159,203
40,964,599,694
5,288,669,108
6,300,427,787
163,754,791
145,388,634
11,898,240,320
29,268,538,459
100,000,000
(85,000,000)
15,000,000
100,000,000
(80,000,000)
20,000,000
171,595,403
19,805,000
(19,970,042)
171,430,361
171,595,403
19,805,000
(19,805,000)
171,595,403
Government bonds
Name of the bonds
HTM
3 years T & T bonds
2 years Bangladesh Government Islami Investment Bonds
5 years Bangladesh Government treasury bonds (7.80%-9.00%)
10 years Bangladesh Government treasury bonds(8.50%-11.74%)
HFT
3 years T & T bonds
2 years Bangladesh Government Islami Investment Bonds
5 years Bangladesh Government treasury bonds (10.60%-11.55%)
6a.3
Debentures of Bangladesh House Building Finance Corporation

- at redeemable value
Principal
Add: Accrued Interest
Less: Redeemed up to 31 December 2012
Redeemable value
6a.4
Dhaka Bank Ltd. Subordinated Bond

Opening balance
Add: Interest accrued during the year
Less: Principal redemption during the year
Less: Interest received during the year
Redeemable value

2012
Amount in Taka
2011
6a.5
National Bank Ltd. Subordinated Bond

Opening balance
Redeemable value
201,661,111
23,000,000
(23,000,000)
201,661,111
201,661,111
23,000,000
(23,000,000)
201,661,111
6a.6
DBH Zero Coupon Bond

Opening balance
Redeemable value
151,813,187
7,916,928
(75,000,000)
(30,067,093)
54,663,022
233,648,062
14,993,338
(75,000,000)
(21,828,213)
151,813,187
6a.7
IDLC Zero Coupon Bond

Opening balance
Redeemable value
50,402,795
2,771,904
(25,000,000)
(10,022,370)
18,152,329
77,553,649
5,125,216
(25,000,000)
(7,276,070)
50,402,795
6a.8
Orascom Bond
Principal
Redeemable value
200,150,000
23,981,250
(50,000,000)
(24,018,750)
150,112,500
250,187,500
30,750,000
(50,000,000)
(30,787,500)
200,150,000
6a.9
Investment in subsidiaries
2,999,999,940
712,500,000
10,993,235
56,352,624
28,685,185
3,808,530,984
2,999,999,940
712,500,000
10,993,235
49,633,289
21,374,368
3,794,500,832
32,918,300
17,987,037
21,243,239
18,648,926
27,121,550
20,855,770
29,608,038
20,380
14,338,010
23,395,426
21,314,190
9,980,000
19,867,211
37,009,980
294,308,058
6,892,375
3,872,420
5,311,538
4,727,166
5,802,255
20,380
3,482,316
3,608,921
4,622,080
4,429,698
4,135,407
11,298,243
58,202,799
15,694,430
4,184,430
19,878,860
314,186,918
15,694,430
2,413,761
10,000,000
100,212,500
128,320,691
186,523,490

PBL Exchange(UK) Ltd.
6a.10
Investment in shares
Quoted
AB Bank Ltd.
Bank Asia Ltd.
BRAC Bank Ltd.
The City Bank Ltd.
DESCO
Dhaka Bank Ltd.
Eastern Bank Ltd.
Federal Insurance Company Bangladesh Ltd.
Jamuna Bank Ltd.
Lanka Bangla Finance Ltd.
M. I. Cement Factory Ltd.
MJL Bangladesh Ltd
National Bank Ltd.
NLI First MF
One Bank Ltd.
Titas Gas
Uttara Bank Ltd.
Unquoted as on 31 December 2012
Central Depository Bangladesh Limited (CDBL)
Investment in SWIFT
NLI First MF
9% Preference share of BRAC Bank
(Annexure -B)

2012
6a.11 (i)
Amount in Taka
Disclosure regarding outstanding Repo

Counterparty name
Bangladesh Bank-(Assured liquidity support)
Bangladesh Bank-(Special Repo)
Standard Chartered Bank
Pubali Bank Ltd.
Agreement date
Reversal date
Amount
30.12.2012
30.12.2012
30.12.2012
30.12.2012
01.01.2013
01.01.2013
01.01.2013
01.01.2013
2,424,510,000
1,500,000,000
2,374,310,059
1,105,530,248
Total
6a.11 (ii)
7,404,350,307
Disclosure regarding outstanding Reverse Repo

Counterparty name
Agreement date
Reversal date
Amount
Total
6a.12
2011
Disclosure regarding Overall transaction of Repo and Reverse Repo

Counterparty name
Minimum
Outstanding during
the year
Maximum
outstanding during
the year
Daily average
outstanding during
the year
1,987,615,000
276,952,437
14,924,630,000
4,713,754,422
9,526,479,483
1,403,485,189
Securities sold under Repo

With Bangladesh Bank
With other Banks & FIS
Securities purchased under Reverse Repo

From Bangladesh Bank
From other Banks & FIS
Consolidated loans, advances and lease / Investments

153,440,706,958
132,028,898,117
6,348,091,622
5,897,653,045
404,029,700
193,021,110
160,192,828,280
138,119,572,272
3,817,920,298
3,713,344,767
156,374,907,982
134,406,227,505
8,667,419,387
7,395,421,459
165,042,327,369
141,801,648,964

Less: Inter-company transactions
Consolidated bills purchased and discounted (note-8)

2012
7a
Amount in Taka
2011
Loans, advances and lease / investments of the Bank

i) Loans, cash credits, overdrafts, etc.
Inside Bangladesh
Secured overdraft / Quard against TDR
Cash credit / Murabaha
Loans (General)
House building loans
Loans against trust receipt
Payment against document
Retail loan
Lease finance / Izara (note - 7a.3)
Credit card
SME loan
Hire purchase
Other loans and advances
Outside Bangladesh
38,485,351,177
22,797,516,730
30,396,292,698
3,615,477,187
17,724,668,458
679,994,650
11,303,238,002
8,186,003,760
915,407,506
988,948,830
8,118,559,532
10,229,248,428
153,440,706,958
153,440,706,958
36,375,509,274
17,533,655,691
22,300,158,827
3,634,699,533
20,912,413,500
701,741,974
10,938,785,871
7,556,800,614
750,396,269
1,278,065,027
7,156,823,052
2,889,848,485
132,028,898,117
132,028,898,117
5,499,981,492
4,617,715,263
1,949,160,113
7,449,141,605
160,889,848,563
2,201,816,628
6,819,531,891
138,848,430,008
160,889,848,563
138,848,430,008
6,168,499,440
620,359,575
3,974,248,435
10,763,107,450
150,126,741,113
1,908,248,000
538,695,707
2,563,399,971
5,010,343,678
133,838,086,330
36,933,559,434
34,024,057,815
44,801,021,311
42,229,227,840
2,901,982,163
160,889,848,563
25,469,685,668
36,007,310,917
42,281,182,417
33,027,948,535
2,062,302,471
138,848,430,008
3,283,525,539
11,226,832,700
585,251,400
15,095,609,639
6,909,605,879
8,186,003,760
1,572,495,257
5,576,138,596
2,246,981,454
9,395,615,307
1,838,814,693
7,556,800,614
ii) Bills purchased and discounted (note-8a)

Payable Inside Bangladesh
Inland bills purchased
Payable Outside Bangladesh
Foreign bills purchased and discounted
7a.1
Net loans, advances and lease / investments

Gross performing loans, advances and lease / investments (note-7a)
Less:
Non-performing loans, advances and lease / investments (note-7a.11)
Interest suspense (note-13a.6)
Provision for loans, advances and lease / investments (note-13a.3, 13a.5)
7a.2
Residual maturity grouping of loans, advances and lease / investments

including bills purchased and discounted
Repayable on demand
Up to 1 month
Over 5 years
7a.3
Lease finance / Izara

Lease rental receivable within 1 year
Lease rental receivable within 5 years
Lease rental receivable after 5 years
Total lease / Izara rental receivable
Less: Unearned interest receivable
Net lease / Izara finance

2012
7a.4
Bills purchased and discounted (note-8a)
92,157,839,051
22,797,516,730
38,485,351,177
153,440,706,958
7,449,141,605
160,889,848,563
78,119,733,152
17,533,655,691
36,375,509,274
132,028,898,117
6,819,531,891
138,848,430,008
1,724,309,911
1,394,937,859
21,690,116,112
13,119,356,738
3,615,477,187
11,303,238,002
12,230,784,130
682,454,196
11,201,263
81,767,701,149
14,745,209,875
159,165,538,652
160,889,848,563
20,675,645,192
8,691,928,762
3,634,699,533
10,938,785,871
9,429,394,225
1,060,828,000
4,462,142
65,426,459,723
17,591,288,701
137,453,492,149
138,848,430,008
2,274,808,715
26,070,842,203
5,340,966,112
1,574,636,341
1,170,213,626
204,570,425
5,113,194,980
5,958,981,208
9,325,671,441
24,733,816,098
81,767,701,149
2,283,317,008
13,330,206,646
3,959,449,000
1,581,394,927
1,617,250,000
35,619,485
2,949,673,646
3,966,959,793
5,157,154,311
30,545,434,907
65,426,459,723
117,138,250,054
25,060,277,567
5,214,202,263
4,510,325,528
150,519,568
1,993,477,795
1,020,742,969
155,087,795,744
101,503,759,729
21,356,686,758
4,376,951,766
3,669,923,389
175,568,285
1,649,254,200
930,136,252
133,662,280,379
3,866,632,368
1,014,279,804
121,042,186
487,631,644
312,466,817
5,802,052,819
160,889,848,563
3,441,718,745
791,768,625
25,696,491
255,683,128
671,282,640
5,186,149,629
138,848,430,008
Loans, advances and lease / investments on the basis of significant

concentration including bills purchased and discounted.
a) Loans, advances and lease / investments to Directors of the Bank
b) Loans, advances and lease / investments to Chief Executive and
other senior executives
c) Loans, advances and lease / investments to customer groups
i) Commercial lending
ii) Export financing
iii) House building loan
iv) Retail loan
v) Small and medium enterprises
vi) Special program loan
vii) Staff loan
viii) Industrial loans / investments detail (note-7a.5 d)
ix) Other loans and advances (SOD)
d) Details of Industrial loans / investments

i) Agricultural industries
ii) Textile industries
iii) Food and allied industries
iv) Pharmaceutical industries
v) Leather, chemical, cosmetics, etc.
vi) Tobacco industries
vii) Cement and ceramic industries
viii) Service Industries
ix) Transport and communication industries
x) Other industries including bills purchase and discounted
7a.6
2011
Loans, advances and lease / investments under the following broad categories
Loans
Cash credits
Overdrafts
7a.5
Amount in Taka
Loans, advances and leases / investments -geographical location-wise

Inside Bangladesh
Urban
Dhaka Division
Chittagong Division
Khulna Division
Rajshahi Division
Barisal Division
Sylhet Division
Rangpur Division
Rural
Dhaka Division
Chittagong Division
Khulna Division
Rajshahi Division
Sylhet Division
Outside Bangladesh

2012
7a.7
7a.8
Sector-wise loans, advances and lease / investments including bills

purchased and discounted
Public sector
Co-operative sector
Private sector
2011
107,324,320
160,782,524,243
160,889,848,563
330,736,692
48,203,108
138,469,490,208
138,848,430,008
115,788,853,865
3,010,813,582
242,063,041
5,131,043
6,466,293,749
7,566,583,262
1,408,779,115
1,853,220
10,412,344,557
15,987,133,129
160,889,848,563
89,543,240,119
3,924,012,894
1,696,097
5,323,242,682
10,550,622,940
549,884,386
992,852
10,767,830,041
18,186,907,997
138,848,430,008
Details of pledged collaterals with the Bank

Collateral of movable / immovable assets
Local banks and financial institutions guarantee
Government guarantee
Foreign banks guarantee
Export documents
Fixed deposit receipts
FDR of other banks
Government bonds
Personal guarantee
Other securities
7a.9
Amount in Taka
Details of large loans, advances and lease / investments

Number of clients with outstanding amount and classified loans / investments exceeding 10% of total capital of the
Bank. Total capital of the Bank was Taka 25,751.53 million as at 31 December 2012 (Tk 24,068.59 million in 2011).
Number of clients
Amount of outstanding advances / investments
Amount of classified advances / investments
Measures taken for recovery
Name of clients
Ananta Group
Bangladesh Rural Advancement Committee (BRAC)
Bismillah Group
Bulk Trade International Ltd.
Concord Pragatee Consortium Ltd.
14
10
45,574,440,000
31,478,100,000
* 632,544,000
Nil
Negotiation under process
Not applicable
Outstanding (Tk. in million)
Total
Total
Funded
Non-funded
(Tk. in million) (Tk. in million)
1,244.75
1,926.43
3,171.19
1,820.02
2,496.42
620.68
3,117.10
3,119.78
3,119.78
2,257.35
2,868.83
ENA Properties
1,358.82
1,419.79
2,778.61
Energy Pac Confidence Group
1,773.42
895.51
2,668.93
1,968.12
Janata Flour & Dal Mills Ltd.
2,510.44
3,959.03
6,469.47
6,650.62
M/s. Kabir Steel & BSA Group
2,065.97
2,320.25
4,386.21
3,927.25
Noman Group
2,214.00
591.73
2,805.73
Prime Bank Investment Ltd
3,816.30
3,816.30
3,555.68
Project Builders Ltd.
2,942.00
1,772.17
4,714.17
Rural Power Company Ltd.

Tamishna Group
T.K Group
2,043.73
2,101.97
739.15
2,841.12
3,115.86
634.78
5,051.07
5,685.86
3,270.65
23,158.86
22,415.58
45,574.44
31,478.10
* The amount relates to Bismillah Group. However, there are challanges which are under scrutiny of our Audit & Inspection and
Bangladesh Bank.

2012
7a.10
2011
Particulars of loans, advances and lease / investments

i)
Loans / investments considered good in respect of which the Bank is

fully secured
131,232,363,211
105,407,519,801
26,399,477,686
10,767,830,041
3,258,007,666
22,673,080,166
160,889,848,563
138,848,430,008
1,735,511,174
1,399,400,001
vi) Loans / investments due from companies or firms in which the directors
of the Bank have interest as directors, partners or managing agents or
in case of private companies, as members
vii) Maximum total amount of advances / investments, including temporary

advances made at any time during the year to directors or managers
or officers of the banking company or any of them either separately or
jointly with any other person.
1,735,511,174
1,399,400,001
viii) Maximum total amount of advances / investments, including temporary

advances / investments granted during the year to the companies
or firms in which the directors of the banking company have interest
as directors, partners or managing agents or in the case of private
companies, as members
ix) Due from banking companies
6,168,499,440
1,908,248,000
1,949,076,445
1,354,840,849
620,359,575
778,227,982
528,916,000
538,695,707
2,574,963,826
404,200,520
2,979,164,346
85,048,984
2,374,986,436
199,977,390
2,574,963,826
110,069,208
3,487,369,161
2,662,458,142
150,891,349,342
3,829,999,781
154,721,349,123
135,761,469,008
1,178,713,000
136,940,182,008
2,286,522,275
709,305,223
3,172,671,942
6,168,499,440
160,889,848,563
560,878,000
309,826,000
1,037,544,000
1,908,248,000
138,848,430,008
ii) Loans / investments considered good against which the Bank holds no
security other than the debtors personal guarantee
iii) Loans / investments considered good secured by the personal
undertaking of one or more parties in addition to the personal guarantee
of the debtors
iv) Loans / investments adversely classified; provision not maintained
there against
v) Loans / investments due by directors or officers of the banking
company or any of them either separately or jointly with any other
persons (note-7a.5b+7a.5c.vii)
x) Classified loans and advances / investments

a) Classified loans and advances / investments on which interest has
not been charged (note-7a.11)
b) Provision on classified loans and advances / investments
(for details see note-13a.3)
c) Provision kept against loans / investments classified as bad debts
d) Interest credited to Interest Suspense Account (note-13a.6)
xi) Cumulative amount of written off loans / investments
Opening Balance
Amount written off during the year
Amount realised against loans / investments previously written off
The amount of written off / classified loans / investments for which law
suits have been filed (note-7a.14)
7a.11
Amount in Taka
Classification of loans, advances and lease / investments

Unclassified
Standard including staff loan
Special mention account (SMA)
Classified
Sub-standard
Doubtful
Bad / Loss

2012
7a.12
Amount in Taka
2011
Particulars of required provision for loans, advances and lease /

investments
Status
Base
Rate
for provision
General Provision
Loans/investments (Excluding
SMA)
150,891,349,342
Interest receivable on loans/

investments
*Various
1,789,525,189
1,660,355,150
951,727,418
9,517,274
6,995,138
3,829,999,781
191,499,989
54,294,850
1,990,542,452
1,721,645,138
*General provision is kept @ 1% on general loans and advances / investments and 0.25% on small enterprise financing,
2% on certain other types of lending and 5% on consumer financing.
Status
Base
Rate
for provision
2,014,100,959
20
Specific provision
Sub-standard
Doubtful
Bad / Loss
402,820,192
83,732,000
377,075,126
50
188,537,563
118,590,000
1,354,840,849
100
1,354,840,849
528,916,000
1,946,198,604
731,238,000
Required provision for loans, advances and lease / investments
3,936,741,056
2,452,883,138
Total provision maintained (note - 13, 13a3 & 13a.5)
3,983,765,735
2,563,399,971
47,024,679
110,516,833
Excess / (short) provision at 31 December 2012
Bangladesh Bank letter dated 28/02/2013 advised to classify few customer accounts in the current years financials,
accordingly we have considered those accounts under classification list. However, the Bangladesh Bank has extended
the time for provisioning on such accounts upto 30.06.2013, if fail to recover/reschedule.
7a.13
Particulars of required provision on Off-balance Sheet Exposures

Base
for Provision
Rate
1%
33,064,522,464
330,645,225
289,634,163
Letter of guarantee
44,031,123,130
440,311,231
349,552,843
Letter of credit
30,602,172,770
306,021,728
297,066,633
Required provision on Off-balance Sheet Exposures
1,076,978,184
936,253,639
Total provision maintained (note - 13a.4)
1,080,000,000
940,000,000
3,021,816
3,746,361

2012
7a.14
Suits filed by the Bank (Branch wise details)

Agrabad Branch
Adamjee EPZ Branch
Asad Gate Branch
Ashulia Branch
Banani Branch
Bangshal Branch
Barisal Branch
Bashundhara Branch
Bogra Branch
Head Office, FMD & Card
Court Road Branch
Coxs Bazar Branch
Dinazpur Branch
Elephant Road Branch
Foreign Exchange Branch
Ganakbari Branch
Gulshan Branch
Halishahar Branch
Hathazari Branch
IBB, Amberkhana Branch
IBB, Dilkusha Branch
IBB, Mirpur Branch
IBB, O.R. Nizam Road Branch
IBB, Pahattali Branch
Jessore Branch
Joypara
Jubilee Road Branch
Kawran Bazar Branch
Khatunganj Branch
Khulna Branch
Laldighi East Branch
Madhabdi Branch
Mirpur-1 Branch
Motijheel Branch
Mohakhali Branch
Mouchak Branch
Moulvibazar Branch, Dhaka
Mymensingha Branch
Naogaon Branch
Narayanganj Branch
New Eskatan Branch
Oxygen More Branch
Pallabi Branch
Panthpath Branch
Rajshahi Branch
Rangpur Branch
Ring Road Branch
Sat Masjid Road Branch
SBC Tower Branch
Simrail Branch
SME Banking, Dhaka
Sremangal Branch
Sylhet Branch
Subidbazar Branch, Sylhet
Tongi Branch
Uposhahar Branch, Sylhet
Uttara Branch
Amount in Taka
182,223,605
619,020
20,978,451
12,667,127
7,339,256
22,095,540
779,085
7,412,477
733,109,329
25,440,651
507,721
2,122,930
440,993
3,715,619
413,947,087
683,550
93,893,494
385,000
6,167,879
3,132,100
26,740,776
270,000
33,187,610
212,146
6,592,865
1,978,190
480,606,863
132,755,491
16,137,047
120,302,380
6,357,500
3,348,640
9,802,051
763,638,244
2,012,365
4,117,086
100,648,973
8,150,000
40,825,730
1,410,176
727,696
1,290,144
3,763,525
49,272,272
857,888
42,195,523
1,604,025
5,329,753
5,465,265
19,891,879
21,903,286
20,615,350
2,414,000
2,432,493
1,447,800
11,403,213
3,487,369,161
2011
158,485,605
21,209,134
8,088,417
1,271,718
21,496,140
779,085
6,432,545
733,109,329
24,106,651
69,519
1,756,759
5,793,408
975,050
95,007,494
1,957,174
29,606,523
100,000
30,059,610
212,146
6,632,612
956,190
19,111,290
56,292,005
145,804,110
200,019,715
5,202,500
3,964,324
10,812,220
659,995,269
2,012,365
3,362,086
100,648,973
100,981,115
41,086,654
861,249
1,654,686
49,272,272
314,135
33,627,402
1,604,025
5,329,753
7,280,251
6,892,287
21,654,662
20,570,912
964,000
2,432,493
1,395,200
11,207,078
2,662,458,142

2012
8
Consolidated Bills purchased and discounted

8a

Payable in Bangladesh
Payable outside Bangladesh
8a.1
Maturity grouping of bills purchased and discounted

Payable within one month
Over one month but less than three months
Over three months but less than six months
Six months or more
Consolidated fixed assets including premises, furniture and fixtures

9a
Fixed assets including premises, furniture and fixtures of the Bank

Property, Plant & Equipment
Land
Building
Office equipment and machinery
Vehicles
Library books
Leased property:
Leased vehicles
Less: Accumulated depreciation

Intangibles assets
Software-core banking
Software-ATM
Cost of intangibles assets
Less: Accumulated amortization
Net book value at the end of the year (See annexure-C for detail)
6,819,531,891
575,889,568
7,395,421,459
5,499,981,492
1,949,160,113
7,449,141,605
4,617,715,263
2,201,816,628
6,819,531,891
2,975,545,974
1,938,801,812
2,534,793,819
7,449,141,605
3,344,016,715
1,912,325,394
1,563,189,782
6,819,531,891
4,363,349,270
22,809,876
8,710,077
5,095,255
18,875,772
964,587
4,419,804,836
3,975,458,490
27,599,950
10,142,395
2,623,453
17,065,888
513,704
4,033,403,880
2,200,907,410
761,773,433
694,293,990
1,157,551,128
325,821,316
1,558,890
5,141,906,167
2,195,907,410
543,182,545
617,233,126
1,032,982,037
216,602,023
1,535,005
4,607,442,146
31,690,384
31,690,384
211,498,500
34,070,094
245,568,594
132,396,714
17,092,221
149,488,935
2,946,983
1,637,587
1,410,371
5,994,941
5,425,160,086
1,214,728,832
4,210,431,254
2,946,983
1,607,562
1,410,371
5,964,916
4,794,586,381
970,149,429
3,824,436,952
226,740,063
28,235,444
254,975,507
102,057,491
152,918,016
4,363,349,270
197,956,054
28,235,444
226,191,498
75,169,960
151,021,538
3,975,458,490
The fixed assets recognised and measurements policy are described in note 2.2.4
2011
7,449,141,605
1,218,277,782
8,667,419,387
ATM
Hardware & equipment
Furniture & fixtures
Vehicles
Amount in Taka

2012
10
2011
Consolidated other assets

Less: PBIL investment in Prime Bank Securities Ltd.(below)
Less: Dividend of Prime Bank Investment Limited (note-10a)
Less: Due from Investment in PBL Finance (Hong Kong) Limited (note-10a)
Prime Bank Investment Limited (investment in PBSL)
10a
Amount in Taka
Other assets of the Bank

Stationery and stamps
Exchange adjustment account
Loan to Off-shore Banking Units
Due from Off-shore Banking Units
Loan to PBL Finance (Hong Kong) Limited
Prepaid expenses
Interest / profit receivable on loan (note-10a.1)
Interest receivable on Govt. securities
Advance deposits and advance rent
Prepaid expenses against house furnishing
Branch adjustments account
Migration account
Suspense account (note -10a.2)
Encashment of PSP / BSP
ATM
Credit card
Sundry assets ( note -10a.3)
4,087,797,994
(37,500,000)
(239,999,995)
(1,128,039,537)
2,682,258,462
2,941,514,147
(37,500,000)
(560,463,177)
2,343,550,971
37,500,000
41,455,905
28,155,379
5,920,175
1,936,520
1,739,542
116,707,521
2,798,965,983
37,500,000
129,062,408
37,383,172
2,474,309
6,521,429
1,150,083
214,091,401
2,557,642,372
22,512,393
4,124,190,642
146,642,463
1,128,039,537
30,971,838
951,727,418
1,008,186,693
185,487,221
7,430,885
61,205,540
(2,440)
166,334,111
259,196,282
2,050,889
90,683,814
173,973,813
8,358,631,099
4,270,833,105
4,087,797,994
15,110,147
584,074
2,966,262,332
289,605,535
560,463,177
8,773,938
699,513,772
701,079,687
153,215,480
7,416,864
123,571,698
(121,465)
431,245,616
153,725,551
78,050,003
8,885,605
6,197,382,014
3,255,867,867
2,941,514,147
10a.1
Interest / profit receivable: Amount represents interest / profit receivable on loans, advances and lease / investments,
interest on term placement, Government securities & foreign currency balance, etc.
10a.2
Suspense account includes TT / DD in transit, advance against Land/ Building, advance against new branch, advance
against TA/ DA, printing and stationery, postage, suspense- others, clearing adjustment account etc.
10a.3
Sundry assets
Protested Bills
Less: Writeoff during the year
Receivable from/ (Payable to) branches
Others
1,141,024,661
(1,126,313,064)
(123,449)
159,385,664
173,973,813
7,454,399
1,431,206
8,885,605
At year-end management has performed detailed review of all protested bills and claims originated during the course of
banking operation, and upon assessing their recovery prospect, amounts which are considered to be not recoverable
have been written off after observing required formalities (note-13a.8).
10a.4
Particulars of required provision for other assets

Purchase of credit card bills
71,000,000
Protested bills
14,711,597
1,212,244
Others
159,385,664
Required provision for other assets
Total provision maintained (note - 13a.8)
Rate
100%
100%
100%
100%
71,000,000
14,711,597
1,212,244
159,385,664
246,309,505
247,111,936
802,431
71,000,000
7,454,399
1,212,244
79,666,643
81,000,000
1,333,357

2012
11
20,681,977,457
10,969,847,805
3,933,012,530
3,578,091,569
352,278,429
135,253,198

Outside Bangladesh (note-11a.2)
PBL bond
3,713,344,767
21,149,348,118
10,969,847,805
20,043,096,293
10,969,847,805
638,881,164
20,681,977,457
10,969,847,805
14,900,000,000
7,880,000,000
2,500,000,000
2,500,000,000
4,943,855
Bangladesh Bank (Off-shore Banking Units)
245,558,700
2,424,510,000
Refinance against SME loan from Bangladesh Bank
218,586,293
339,345,250
20,043,096,293
10,969,847,805
81,964
Doha Bank, Qatar
399,249,500
United Bank Ltd., UAE
239,549,700
638,881,164
Outside Bangladesh
The Bank of Nova Scotia, Canada
Security against borrowings from other banks, financial institutions and agents
Secured (Treasury bills)
Unsecured
11a.4
3,817,920,298
Standard Chartered Bank, Bangladesh

Repo of Treasury Bills
11a.3
14,683,192,572
In Bangladesh
Call deposits
11a.2
24,967,268,416
Borrowings from other banks, financial institutions and agents of the Bank
In Bangladesh (note-11a.1)
11a.1
2011
Consolidated borrowings from other banks, financial institutions and agents
11a
Amount in Taka
2,424,510,000
18,257,467,457
10,969,847,805
20,681,977,457
10,969,847,805
14,900,000,000
7,880,000,000
3,063,391,164
120,000,000
Maturity grouping of borrowings from other banks, financial institutions and agents
Payable on demand
Up to 1 month
Over 1 month but within 3 months
Over 3 months but within 1 year
469,847,805
2,718,586,293
2,500,000,000
20,681,977,457
10,969,847,805
Over 1 year but within 5 years

Over 5 years

2012
12

Bills payable
Prime Bank Limited (note-12a.1.c)
Term / Fixed deposits
27,373,823,258
27,373,823,258
79,745,846
27,294,077,412
23,628,852,206
23,628,852,206
3,057,570
23,625,794,636
3,421,438,111
3,421,438,111
2,992,596,076
2,992,596,076
19,188,831,632
19,188,831,632
17,943,888,911
17,943,888,911
132,068,779,059
132,068,779,059
10,706,364
132,058,072,695
181,962,419,850
115,250,383,779
115,250,383,779
303,499
115,250,080,280
159,812,359,903
3,232,242,135
178,820,629,925
182,052,872,060
4,285,925,000
155,529,795,972
159,815,720,972
37,755,074
477,642,721
466,844,340
2,250,000,000
3,232,242,135
28,874,000
855,359,000
801,722,000
2,599,970,000
4,285,925,000
9,223,716,222
3,794,404,102
15,276,866
14,469,292,445
27,502,689,635
166,621,451
27,336,068,184
8,787,796,884
3,917,832,972
84,940,823
11,047,077,355
23,837,648,034
237,669,828
23,599,978,206
Deposits and other accounts of the Bank

Deposits from banks (note -12a.1.a)
Deposits from customers (note-12a.1.b)
12a.1
2011
Consolidated deposits and other accounts

Current deposits and other accounts
12a
Amount in Taka
a) Deposits from Banks

Special notice deposits
Fixed deposits
b) Customer Deposits
i) Current deposits and other accounts
Foreign currency deposits
Security deposits
Sundry deposits (note - 12a.2)

2012
ii) Bills payable
Pay orders issued
Pay slips issued
Demand draft payable
Foreign demand draft
T. T. payable
Bill Pay ATM
iii) Savings bank / Mudaraba savings deposits
iv) Term / Fixed deposits
Fixed deposits / Mudaraba fixed deposits
Non resident Taka deposits
Scheme deposits
c) Deposits and other accounts

Deposits from customers (note-12a.1.b.i)
Bills payable
Deposits from customers (note-12a.1.b.ii)

Savings bank / mudaraba savings deposits
Deposits from customers (note-12a.1.b.iii)

Deposits from customers (note-12a.1.b.iv)
12a.2
Amount in Taka
2011
3,305,503,224
4,425,077
111,195,865
313,592
318
35
3,421,438,111
2,847,424,899
5,179,467
139,677,288
313,592
830
2,992,596,076
18,711,188,911
17,088,529,911
80,358,078,398
7,944,713,645
601,207,853
40,447,934,823
129,351,934,719
178,820,629,925
182,052,872,060
70,570,841,509
7,136,150,650
305,972,722
33,835,726,898
111,848,691,779
155,529,795,972
159,815,720,972
37,755,074
27,336,068,184
27,373,823,258
28,874,000
23,599,978,206
23,628,852,206
3,421,438,111
3,421,438,111
477,642,721
18,711,188,911
2,992,596,076
2,992,596,076
855,359,000
17,088,529,911
19,188,831,632
17,943,888,911
2,716,844,340
3,401,692,000
129,351,934,719
132,068,779,059
111,848,691,779
115,250,383,779
182,052,872,060
159,815,720,972
6,085,186,554
3,982,771,999
20,572,395
84,798,208
Sundry deposits
F.C. held against back to back L/C
Sundry creditors
Risk fund and service charges (CCS and lease finance)

Sale proceeds of PSP / BSP
Margin on letters of guarantee

Margin on letters of credit
Margin on FDBP / IDBP, export bills, etc

Lease deposits
162,584,000
45,110,000
1,184,550,356
2,248,420,445
87,103,659
120,955,692
169,851,369
6,550,001
967,024,934
1,772,883,324
124,670,097
106,652,132
Interest / profit payable on deposits
2,538,613,828
2,322,719,001
Others
1,528,828,909
1,100,448,440
Withholding VAT/Tax /Excise duty payable to Government Authority
447,366,607
14,469,292,445
408,707,850
11,047,077,355

2012
12a.3
Payable on demand and time deposits

a) Demand deposits
Current deposits
Savings deposits (10%)
Foreign currency deposits (Non interest bearing)
Security deposits
Sundry deposits
Bills payable
b) Time deposits
Savings deposits (90%)
Fixed deposits
Deposits under schemes
12a.4
Sector-wise break-up of deposits and other accounts

Government
Deposit money banks
Other public
Foreign currency
Private
12a.5
Unclaimed deposits and valuables

Current deposits
Savings deposits
Demand Draft
SDR
Pay order
12a.6
Maturity analysis of deposits

a) Maturity analysis of deposits from Banks
Payable on demand
Up to 1 month
Over 5 years but within 10 years
Over 10 years
b) Maturity analysis of customer deposits excluding bills payable
Payable on demand
Up to 1 month
Over 10 years
c) Maturity analysis of bills payable
Payable on demand
Up to 1 month
Over 10 years
Amount in Taka
2011
9,261,471,296
1,918,883,163
3,627,782,651
15,276,866
14,469,292,445
3,421,438,111
32,714,144,532
8,816,670,884
1,794,388,892
3,680,163,144
84,940,823
11,047,077,355
2,992,596,076
28,415,837,174
17,269,948,469
82,608,078,398
8,411,557,985
40,447,934,823
601,207,853
149,338,727,528
182,052,872,060
16,149,500,019
73,170,811,509
7,937,872,650
33,835,726,898
305,972,722
131,399,883,798
159,815,720,972
3,331,169,000
3,232,242,135
6,281,049,000
3,627,782,651
165,580,629,274
182,052,872,060
3,182,610,000
4,285,925,000
6,641,406,000
3,680,163,144
142,025,616,828
159,815,720,972
66,084
173,417
275,745
974,487
4,388,608
5,878,340
285,444
122,972
150,122
789,500
2,005,578
3,353,616
37,755,074
524,327,155
2,250,000,000
420,159,906
3,232,242,135
28,874,000
935,531,000
2,599,970,000
721,550,000
4,285,925,000
28,653,601,490
39,295,756,247
36,174,586,587
47,903,487,671
23,365,881,479
5,878,340
175,399,191,814
22,650,135,954
34,968,176,650
42,721,335,350
42,616,651,942
9,577,546,384
3,353,616
152,537,199,896
3,421,438,111
3,421,438,111
182,052,872,060
2,992,596,076
2,992,596,076
159,815,720,972

2012
13
Consolidated other liabilities

13a
Other liabilities of the Bank

Foreign currency held against EDF loan
Exchange equalization account (note - 13a.7)
Exchange adjustment account
Expenditure and other payables
Provision for bonus
Obligation under finance lease (note-13a.9)
Provision for income tax (note - 13a.1)
Deferred tax liability (note-13a.2)
Unearned commission on bank guarantee
Credit card
Provision for gratuity
Provision for off-balance sheet exposures (note-13a.4)
Provision for Off-shore Banking Units (note-13a.5)
Fund for employee welfare fund (EWF)
Fund for Prime Bank Foundation (PBF)
Provision for loans and advances / investments (note - 13a.3)
Provision for Interest receivable on loans and advances / investments (note- 38a)
Provision for diminution in value of investments (note-38a)
Interest suspense account (note - 13a.6)
ATM
Other liabilities
Other provision (note - 13a.8)
13a.1
Provision for income tax

Advance tax
Balance of advance income tax on 1 January
Paid during the year
Settlement of previous years tax liability
Provision
Balance of provision on 1 January
Provision of previous year (note-39a)
Provision made during the year (note-39a)
Net balance at 31 December
Amount in Taka
2011
13,311,117,157
680,344,842
46,762,599
11,246,368
26,138,237
19,864,929
14,095,474,132
10,069,949,491
806,406,171
52,074,061
11,457,388
7,411,726
3,528,439
10,950,827,275
2,198,309,830
1,298,288
78,241,569
279,347,201
9,750,730
2,730,498,965
1,097,321,222
126,153,370
700
591,083,488
1,080,000,000
60,500,000
10,672,000
213,405,000
3,913,748,435
9,517,300
43,797,548
620,359,575
247,111,936
13,311,117,157
1,545,582,036
4,523,326
84,951,171
368,115,248
15,471,597
2,273,387,554
911,021,222
45,760,373
209,448
403,599,750
940,000,000
60,500,000
13,600,000
271,900,000
2,502,899,971
538,695,707
331,965
8,400,123
81,000,000
10,069,949,491
9,203,364,417
1,992,688,589
11,196,053,006
6,442,051,751
2,761,312,666
9,203,364,417
11,476,751,971
2,449,800,000
13,926,551,971
2,730,498,965
8,569,431,971
40,817,745
2,866,502,255
11,476,751,971
2,273,387,554
866,620,593
44,400,629
186,300,000
1,097,321,222
642,120,593
44,400,629
224,500,000
911,021,222
* Corporate tax position of the bank is shown in annexure-D

13a.2
Deferred tax liability

Deferred tax liability
Balance as on 1 January
Add: Provision for revaluation of land and building (note-17)
Add: Addition / Adjustment during the year (note-39a)
Balance as on 31 December
An amount of Tk. 186,300,000/- has been made against provision for deferred tax liability for the current year on account
of depreciation & accrued interest on Government Securities.

2012
13a.3
Provision for loans, advances and lease / investments

Movement in specific provision on classified loans / investments: Provision
held as on 1 January
Less: Fully provided debts written off during the year
Add: Recoveries of amounts previously written off
Add: Specific provision made during the year for other accounts
Less: Provision no longer required
Add: Net charge to profit and loss account (note-38a)
Provision held as on 31 December
Movement in general provision on unclassified loans / investments
Provision held as on 1 January
Add: Amount transferred to classified provision
Add: General provision made during the year (note-38a)
13a.4

Add: Amount transferred from classified provision
Add: Provision made during the year (note-38a)
13a.5

Add: Provision made during the year (note-38a)
13a.6
Interest suspense account

Add: Prior year adjustment (note-2.1.9)
Add: Amount transferred to interest suspense account during the year
Less: Amount recovered from interest suspense account during the year
Less: Amount written-off during the year
13a.7
Exchange equalization account

Less: Transfer during the year
13a.8
Other provision for classified assets

Add: Addition during the year (note-38a)
Less: Adjustment during the year
Amount in Taka
2011
778,227,982
642,136,164
(404,200,520)
85,048,984
1,490,000,000
1,949,076,445
(199,977,390)
110,069,208
42,886,010
(42,886,010)
226,000,000
778,227,982
1,724,671,990
240,000,000
1,964,671,990
3,913,748,435
1,462,558,000
(42,886,010)
305,000,000
1,724,671,990
2,502,899,971
940,000,000
140,000,000
1,080,000,000
810,000,000
130,000,000
940,000,000
60,500,000
60,500,000
60,500,000
60,500,000
538,695,707
358,662,232
(116,255,174)
(160,743,191)
620,359,575
360,883,878
28,053,160
1,302,263,675
(1,101,726,798)
(50,778,208)
538,695,707
4,523,326
4,523,326
-
4,523,326
4,523,326
81,000,000
1,292,425,000
(1,126,313,064)
247,111,936
81,000,000
81,000,000
At year-end management has performed detailed review of all protested bills and claims originated during the course of
banking operation, and upon assessing their recovery prospect, amounts which are considered to be not recoverable
have been written off after observing required formalities (note-10a.3).
13a.9
Obligation under finance lease

Minimum lease rental payable
Within 1 year
Above 1 year but within 5 years
Leas: Finance charge payable
7,454,973
3,064,950
10,519,923
769,193
9,750,730
8,286,528
8,708,312
16,994,840
1,523,243
15,471,597

2012
14
Share capital
14.1
Authorized capital
2,500,000,000 ordinary shares of Taka 10 each
14.2
2011
25,000,000,000
10,000,000,000
300,000,000
300,000,000
790,244,129 ordinary shares of Taka 10 each issued as bonus shares
7,902,441,290
6,342,822,180
115,527,340 ordinary shares of Taka 10 each issued as right shares
1,155,273,400
1,155,273,400
9,357,714,690
7,798,095,580
Issued, subscribed and fully paid up capital

30,000,000 ordinary shares of Taka 10 each issued for cash
14.3
Amount in Taka
History of paid-up capital
Given below the history of raising of share capital of Prime Bank Limited:
Accounting
year
Declaration
No of share
Value in capital
Cumulative
10,000,000
100,000,000
100,000,000
1995
Opening capital
1996
60% Bonus share
6,000,000
60,000,000
160,000,000
1997
25% Bonus share
4,000,000
40,000,000
200,000,000
1999
Initial Public Offer (IPO)
20,000,000
200,000,000
400,000,000
2000
25% Bonus share
10,000,000
100,000,000
500,000,000
2001
20% Bonus share
10,000,000
100,000,000
600,000,000
2002
16.67% Bonus share
10,000,000
100,000,000
700,000,000
2003
42.86% Bonus share
30,000,000
300,000,000
1,000,000,000
2004
40% Bonus share
40,000,000
400,000,000
1,400,000,000
2005
25% Bonus share
35,000,000
350,000,000
1,750,000,000
2006
30% Bonus share
52,500,000
525,000,000
2,275,000,000
2007
25% Bonus share
56,875,000
568,750,000
2,843,750,000
2008
25% Bonus share
71,093,750
710,937,500
3,554,687,500
2009
30% Bonus share
106,640,620
1,066,406,200
4,621,093,700
25% right share
115,527,340
1,155,273,400
5,776,367,100
2010
35% Bonus share
202,172,848
2,021,728,480
7,798,095,580
2011
20% Bonus share
155,961,911
1,559,619,110
9,357,714,690
935,771,469
9,357,714,690

2012
14.4
Amount in Taka
2011
Group capital adequacy ratio (Consolidated)

In terms of section 13 (2) of the Bank Companies Act, 1991 and Bangladesh Bank BRPD circulars no. 35 dated
December 29, 2010, required capital of the Bank (Consolidated) at the close of business on 31 December 2012 was
Taka 20,510,265,643 as against available core capital of Taka 20,663,658,556 and supplementary capital of Taka
5,251,991,206 making a total capital of Taka 25,915,649,762 thereby showing a surplus capital / equity of Taka
5,405,384,119 at that date. Details are shown below:
Paid-up capital (note-14.2)
Share premium (note-14.8)
Minority interest (note-14.9)
Statutory reserve (note-15)
Surplus in consolidated profit and loss account / Retained earnings (note-19)
9,357,714,690
2,241,230,396
67
6,839,527,566
2,225,185,837
20,663,658,556
7,798,095,580
2,241,230,396
63
5,772,509,105
2,931,809,566
18,743,644,710
1,964,671,990
1,080,000,000
60,500,000
21,017,432
125,801,783
2,000,000,000
5,251,991,206
25,915,649,762
1,724,671,990
940,000,000
60,500,000
129,669,272
125,801,783
2,500,000,000
4,523,326
5,485,166,371
24,228,811,081
346,356,371,815
205,102,656,431
20,510,265,643
5,405,384,119
12.64%
302,050,785,816
194,379,600,000
19,437,960,000
4,790,851,081
12.46%

General provision maintained against unclassified loan / investments (note-13a.3)
General provision on off-balance sheet exposures (note-13a.4)
General provision on off-shore Banking Units (note-13a.5)
Revaluation gain / loss on investments-50% of total (note-16)
Revaluation reserve for equity instruments-10% of market gain
Revaluation reserve-50% of total (note-17)
Prime Bank Sub-ordinated Bond
Exchange equalization account (note-13a.7)
A) Total capital
Total assets including off-balance sheet exposures
B) Total risk weighted assets
C) Required capital based on risk weighted assets (10% on B)
D) Surplus (A-C)
Capital requirement
Tier - I
Tier -II
Total
Required
5%
5%
10.00%
Held
10.08%
2.56%
12.64%
Required
5%
5%
10.00%
Held
9.64%
2.82%
12.46%
Capital adequacy ratio (Solo Basis)

Paid-up capital (note-14.2)
Share premium (note-14.8)
Statutory reserve (note-15)
Surplus in consolidated profit and loss account / Retained earnings (note-19a)
General provision maintained against unclassified loan / investments (note-13a.3)
General provision on off-balance sheet exposures (note-13a.4)
General provision on off-shore Banking Units (note-13a.5)
Revaluation gain / loss on investments-50% of total (note-16a)
Revaluation reserve-50% of total (note-17)
Prime Bank Sub-ordinated Bond
Exchange equalization account (note-13a.7)
A) Total Capital
Total assets including off-balance sheet exposures
B) Total risk weighted assets
C) Required capital based on risk weighted assets (10% on B)
D) Surplus (A-C)
Capital requirement
Tier - I
Tier -II
Total
Required
5%
5%
10.00%
9,357,714,690
2,241,230,396
6,839,527,566
2,072,227,283
20,510,699,935
7,798,095,580
2,241,230,396
5,772,509,105
2,779,682,107
18,591,517,188
1,964,671,990
1,080,000,000
60,500,000
9,859,846
125,801,783
2,000,000,000
5,240,833,619
25,751,533,554
1,724,671,990
940,000,000
60,500,000
121,579,868
125,801,783
2,500,000,000
4,523,326
5,477,076,967
24,068,594,155
345,020,328,117
202,339,782,174
20,233,978,217
5,517,555,337
12.73%
301,005,598,862
193,257,100,000
19,325,710,000
4,742,884,155
12.45%
Held
10.14%
2.59%
12.73%
Required
5%
5%
10.00%
Held
9.62%
2.83%
12.45%

2012
14.5
Sponsors
Financial Institutions
Foreign Investors
Non- resident Bangladeshi
General Public
2012
Taka
3,795,534,470
1,882,371,040
356,952,120
50,310,430
3,272,546,630
9,357,714,690
2011
Taka
3,177,407,770
1,634,016,860
142,822,810
60,180,260
2,783,667,880
7,798,095,580
2012
%
40.56%
20.12%
3.81%
0.54%
34.97%
100.00%
2011
%
40.75%
20.95%
1.83%
0.77%
35.70%
100.00%
Shareholding range on the basis of shareholdings as at 31 December 2012

Number of
share holders
Shareholding range
Less than 500
500- 5,000
5,001 - 10,000
10,001 - 20,000
20,001 - 30,000
30,001 - 40,000
40,001 - 50,000
50,001 - 100,000
100,001 - 1,000,000
Over 1,000,000
14.7
2011
Percentage of shareholdings at the closing date

Particulars
14.6
Amount in Taka
10,481
10,626
1,260
643
218
109
71
192
230
134
23,964
Taka
Share
1,825,733
17,788,086
8,910,148
9,013,459
5,374,212
3,742,274
3,172,749
13,387,464
69,481,241
803,076,103
935,771,469
Percentage
0.20%
1.90%
0.95%
0.96%
0.57%
0.40%
0.34%
1.43%
7.43%
85.82%
100.00%
Name of the Directors and their shareholdings as at 31 December 2012

Sl
Name of the Directors
Status
1
2
3

Mr. M. A. Khaleque
Mrs. Marina Yasmin
Chowdhury
Mrs. Nazma Haque
Quazi Sirazul Islam
Mrs. Salma Huq
Mrs. Muslima Shirin
Mr. Md. Nader Khan
Mr. Imran Khan
Mr. Nafis Sikder
ShippingLines Ltd.)
Prof. Ainun Nishat
Mr. Manzur Murshed
Chairman
Vice Chairman
Vice Chairman
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Opening
Closing position
position
9,640,093
18,768,111
16,550,622
19,860,746
18,720,079
% of shares as at
31.12.2012
2.01
2.12
2.00
Director
18,983,935
2.03
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
21,644,226
12,409,969
10,120,151
18,736,602
22,150,681
18,798,231
25,973,071
18,741,962
29,322,129
18,716,136
18,719,181
34,563,056
18,716,670
25,283,258
23,478,344
Director
9,040,272
18,728,326
Depositor Director
Depositor Director
Managing Director
22,180
98,164,115
26,616
349,550,532
2.37
2.01
2.78
2.00
3.13
2.00
2.00
3.69
2.00
2.70
2.51
2.00 (Share holding
of East Cost Shipping
Lines Ltd.)
0.003
-

2012
14.8
2,310,546,800
2,310,546,800
2,241,230,396
2,241,230,396
60
60
67
63
Balance on 1 January
5,772,509,105
4,419,319,123
Balance at 31 December
6,839,527,566
5,772,509,105
Less: Income tax deduction at source @ 3% on total premium
Minority interest
Share capital
Retained earnings
15
Statutory reserve
Addition during the year ( 20% of pre-tax profit)

16
2011
Share premium
11,552,734 ordinary shares of Taka 200 each per share
14.9
Amount in Taka
Consolidated revaluation gain / loss on investments
Gain on revaluation of Investment at Prime Exchange Co. Pte. Ltd.,

Singapore
Gain on revaluation of Investment at Prime Exchange (UK) Ltd.
Gain on revaluation of Investment at PBL Finance (Hong Kong) Limited
16(a)
Revaluation gain / loss on investments of the Bank

Opening balance on 1 January
Add: Amortized/Revaluation Gain
Less: Adjustment of amortization/revaluation gain against sale/maturity
Add: Adjustment of revaluation gain/(loss) of OBU fixed assets
Less: Adjustment of Revaluation loss
17
Revaluation reserve
Addition during the year
Less: Provision for deferred tax
69,316,404
1,067,018,461
69,316,404
1,353,189,982
19,719,692
243,159,736
5,315,965
4,765,890
8,198,026
7,274,926
42,034,865
259,338,544
243,159,736
145,134,659
(368,669,109)
94,406
19,719,692
1,416,526,260
161,342,461
(1,334,266,010)
(442,975)
243,159,736
296,004,196
296,004,196
(44,400,629)
251,603,567
296,004,196
296,004,196
(44,400,629)
251,603,567
5,015,711
8,694,724
8,801,182
4,137,992
The Bank revalued the assets of Land and Buildings details described in note 2.5
18
Consolidated foreign currency translation gain/ (loss)




18a
Foreign currency translation gain/ (loss)

141,298
453,880
(152,759)
(1,260,809)
4,510,188
8,058,632
(494,062)
8,694,724
(3,679,013)
5,015,711
170,837
8,694,724
8,694,724

2012
19
Consolidated retained earnings / movement of profit and loss account

Less: Minority Interest
Less: Dividend of Prime Bank Investment Limited
Less: Profit Remitted by Prime Exchange Co. Pte. Ltd., Singapore
Less: Foreign currency translation gains
19a
Retained earnings / movement of profit and loss account of the Bank

Prior year adjustment (note-2.1.9)
Transfer to statutory reserve
Cash dividend
Issue of bonus shares
Add: Foreign currency translation gain/ (loss) (note-18a)
19.1
Consolidated retained earnings brought forward from previous year

Prime Bank Limited (note-19.1 a)
Prime Bank Investment Ltd.
Prime Bank Securities Ltd.
Foreign currency translation gain on 1 January
19.1.a
Retained earnings brought forward from previous year of the Bank

Prior year adjustment (note-2.1.9)
Bonus shares issued
Cash dividend paid
Foreign currency translation gain on 1 January
20
Consolidated contingent liabilities
20.1

Amount in Taka
2011
2,068,548,270
326,488,306
33,096,718
30,646,814
(45,540,613)
47,761,808
2,461,001,303
(7)
(239,999,995)
4,184,536
2,225,185,837
2,788,376,831
602,129,749
4,495,828
27,172,736
(29,966,981)
3,315,705
3,395,523,868
(3)
(450,000,000)
(5,655,667)
(8,058,632)
2,931,809,566
2,779,682,107
2,698,992,305
(1,067,018,461)
(779,809,558)
(1,559,619,110)
2,072,227,283
(3,679,013)
2,068,548,270
2,824,985,571
(15,696,557)
3,634,129,909
(1,353,189,982)
(288,818,355)
(2,021,728,480)
2,779,682,107
8,694,724
2,788,376,831
440,253,439
152,129,749
4,495,828
21,517,069
(29,966,981)
3,315,705
591,744,809
53,809
591,798,618
498,742,180
93,624,615
12,723,070
(9,526,667)
595,563,198
483,917
596,047,115
2,779,682,107
(1,559,619,110)
(779,809,558)
440,253,439
440,253,439
2,824,985,571
(15,696,557)
(2,021,728,480)
(288,818,355)
498,742,179
498,742,179
26,979,335,910
26,979,335,910
28,963,416,330
28,963,416,330

2012
20.2
20.3
Irrevocable Letters of Credit

20.4

20a
Contingent liabilities of the Bank
20a.1

Back to back bills (Foreign)
Back to back bills (Local)
Back to back bills (EPZ)
Less: Margin
20a.2
Letters of guarantee (Local)
Letters of guarantee (Foreign)
Foreign counter guarantees
Less: Margin
Amount in Taka
2011
42,846,572,774
42,846,572,774
34,955,284,339
34,955,284,339
28,353,752,325
28,353,752,325
29,706,663,305
29,706,663,305
10,007,661,530
10,007,661,530
108,187,322,539
7,429,741,406
7,429,741,406
101,055,105,380
23,467,179,116
8,735,295,070
862,048,278
33,064,522,464
(6,085,186,554)
26,979,335,910
21,403,958,328
10,668,342,246
873,887,757
32,946,188,330
(3,982,771,999)
28,963,416,330
21,604,943,515
22,426,179,615
44,031,123,130
(1,184,550,356)
42,846,572,774
19,084,657,270
16,837,652,003
35,922,309,273
(967,024,934)
34,955,284,339
625,653,522
3,924,452,092
39,481,017,516
44,031,123,130
(1,184,550,356)
42,846,572,774
1,573,426,449
1,242,185,336
33,106,697,488
35,922,309,273
(967,024,934)
34,955,284,339
10,353,128,681
7,598,796,833
12,650,247,256
30,602,172,770
(2,248,420,445)
28,353,752,325
15,027,842,031
5,560,834,089
10,890,870,508
31,479,546,628
(1,772,883,324)
29,706,663,305
10,094,765,189
10,094,765,189
(87,103,659)
10,007,661,530
7,554,411,504
7,554,411,504
(124,670,097)
7,429,741,406
Money for which the Bank is contingently liable in respect of guarantees

given favoring:
Directors or officers
Government
Banks and other financial institutions
Others
Less: Margin
20a.3

Letters of credit (Sight)
Letters of credit (Deferred)
Back to back L/C
Less: Margin
20a.4

Outward bills for collection
Less: Margin
Bills for collection is a Memorandum Item. However bills for collection is shown under contingent liability as per
Bangladesh Banks format for preparing financial statements.

2012
21
Dividend income (note-24a)
Fees, commission and brokerage (note-21.2)
Gains less losses arising from dealing in securities
Gains less losses arising from investment securities
20,398,468,504
1,305,873,890
1,327,082,199
254,477,345
467,592,509
1,123,570,867
1,361,846,771
Other operating income (note-26a)
1,017,962,459
652,092,975
Profit less losses on interest rate changes

Expenses:
Interest / profit paid on deposits, borrowings, etc. (note-23a)
Losses on loans, advances and lease/ investments
Administrative expenses (note-21.3)
Other operating expenses (note-37a)
Depreciation on banking assets (note-36a)
30,902,234,192
24,207,082,957
17,410,286,124
3,635,158,345
1,027,527,828
278,429,742
22,351,402,039
8,550,832,153
12,647,982,518
2,933,379,256
974,998,715
223,772,560
16,780,133,049
7,426,949,909
22,821,500,674
3,806,588,945
497,413,554
11,241,156
92,555,220
117,149,862
27,346,449,411
146,099,780
27,200,349,631
16,708,767,903
2,625,327,712
257,036,124
756,849
788,267,323
76,442,500
20,456,598,411
58,129,907
20,398,468,504
1,305,873,890
1,305,873,890
1,326,938,557
143,642
1,327,082,199
2,673,292,974
2,057,720,184
28,570,418
16,312,942
Interest, discount and similar income

Interest income / Profit on investments (note-22a)
Interest income on treasury bills / reverse repo / bonds (note-24a)
Gain on Discounted bond / bills (note-24a)
Gain on sale of shares (note-24a)
Gain on Govt. security trading (note-24a)
Interest on debentures (note-24a)
Less: Loss on sale of security trading (note-24a)
Fees, commission and brokerage

Commission (note-25a)
Settlement fee-PBIL (note-25a)
21.3
27,200,349,631
Gains less losses arising from dealing in foreign currencies (note-25a.1)
Income from non-banking assets
21.2
2011
Income statement
Income:
Interest, discount and similar income (note-21.1)
21.1
Amount in Taka
Administrative expenses
Salary and allowances (note-27a)
Rent, taxes, insurance, electricity, etc. (note-28a)
Legal expenses (note-29a)
Postage, stamp, telecommunication, etc. (note-30a)

Stationery, printing, advertisement, etc. (note-31a)
Managing Directors salary and fees (note-32)
Directors fees (note-33a)
Auditors fees (note-34a)
Repair of Banks assets (note-36a)
430,873,148
367,568,017
127,601,535
132,056,013
11,448,000
9,192,067
304,366,321
5,152,571
575,000
53,278,378
3,635,158,345
298,731,953
3,569,924
522,500
47,705,656
2,933,379,256

2012
22
Consolidated interest income / profit on investment
22a
Interest income / profit on investment of the Bank
23
Consolidated interest / profit paid on deposits, borrowings, etc.
23a

Amount in Taka
22,821,500,674
861,132,742
58,355,301
7,696
66,752,109
23,807,748,522
2011
16,708,767,903
815,326,644
8,507,103
50,031
14,159,476
17,546,811,157
Loans (General) / Musharaka

Loans against imported merchandise / Murabaha
Loans against trust receipts
Packing credit
House building loan
Lease finance / Izara
Hire purchase
Payment against documents
Cash credit / Bai-Muajjal
Secured overdraft
Consumer credit scheme
Portfolio loan
Staff loan
Small and Medium Enterprise (SME)
Agricultural Loan
Forced loan
Documentary bills purchased
Interest income from credit card
Other loans and advances / Investments
Total interest / profit on loans and advances / investments
Interest / profit on balance with other banks and financial institutions
Interest on call loans
Interest / profit received from foreign banks
3,884,501,655
2,551,440,959
11,259,564
15,668,727
3,293,804,014
2,697,573,875
89,028,712
87,132,916
629,952,993
536,026,859
1,298,020,103
949,819,185
1,082,367,798
767,445,920
150,427,754
152,789,156
2,806,526,070
2,360,815,069
5,192,261,814
3,478,941,537
1,808,255,965
1,523,925,257
109,932,550
89,705,776
700,008,462
355,645,152
5,940,634
216,807,034
43,461,973
926,720,192
900,572,000
192,245,609
146,824,613
341,663,152
848,365
22,739,724,075
16,658,637,340
296,162
264,038
1,846,528
17,383,333
79,633,909
32,483,192
22,821,500,674
16,708,767,903
An amount of Tk. 28,053,160 has been restated under the head loans against trust receipts, lease finance/izara,
hire purchase and secured overdraft.

PBL Exchange(UK) Ltd.
17,410,286,124
513,953,702
41,618,117
21,771,648
17,987,629,591
12,647,982,518
392,108,259
3,044,198
3,404,849
13,046,539,824
751,474,472
526,880,164
9,752,597,209
3,905,613,809
11,026,627
16,108,114
14,963,700,395
634,221,636
323,417,623
7,428,847,528
3,192,276,062
2,490,466
8,773,346
11,590,026,661
1,017,498,487
1,037,169,869
43,789,000
54,737,521
94,767
4,283,154
289,012,931
2,446,585,729
17,410,286,124
179,134,736
528,697,715
24,099,356
23,992,420
100,241
14,431,389
287,500,000
1,057,955,857
12,647,982,518
Interest / profit paid on deposits, borrowings, etc. of the Bank
i) Interest / profit paid on deposits:

Deposits under scheme
Foreign currency deposits (note-23a.1)
Others
ii) Interest / Profit paid for borrowings:

Call deposits
Repurchase agreement (repo)
Bangladesh Bank-refinance
Local bank accounts
Foreign bank accounts
Islamic Bond Fund
PBL bond

2012
23a.1
5,026,115
5,754,638
245,874
11,026,627
458,941
1,680,854
350,671
2,490,466
4,633,326,302
48,825,592
9,795,075
4,691,946,969
239,999,995
4,451,946,974
4,157,293,110
64,887,747
2,025,695
4,224,206,552
4,224,206,552
3,806,588,945
117,149,862
497,413,554
11,241,156
92,555,220
254,477,345
4,779,426,082
146,099,780
4,633,326,302
2,625,327,712
76,442,500
257,036,124
756,849
788,267,323
467,592,509
4,215,423,017
58,129,907
4,157,293,110
Consolidated investment income

24a
2011

Interest / profit paid on F.C
Interest / profit paid on N.F.C.D
Interest / profit paid on R. F.C.D
24
Amount in Taka
Investment income of the bank

Interest on treasury bills / Reverse repo / bonds
Interest on debentures / bonds
Gain on discounted bond / bills
Gain on sale of shares
Gain on Govt. security trading
Dividend on shares (note-24a.1)
Less: Loss on sale of security trading
24a.1
Dividend on Shares included dividend income of Tk. 239,999,995.20 from its subsidiary, Prime Bank Investment
Limited.
25
Consolidated commission, exchange and brokerage

25a
2,688,928,970
150,521,169
20,187,773
38,311,889
19,185,250
(15,204)
2,917,119,847
300,728,857
583,764,007
315,647,991
68,781,312
5,376
4,795,635
17,972,030
14,178,682
1,305,873,890
1,123,570,867
2,429,444,757
342,140,821
571,342,706
315,888,659
64,334,299
244,259
7,447,912
17,174,070
8,365,831
1,326,938,557
1,361,846,771
143,642
2,688,928,970
1,129,771,972
(6,201,105)
1,123,570,867
1,360,253,211
1,632,775
(39,215)
1,361,846,771
Commission, exchange and brokerage of the Bank

Commission on L/Cs
Commission on L/Cs-back to back
Commission on L/Gs
Commission on remittance
Commission for services rendered to issue of shares
Merchant Commission
Underwriting Commission regarding Treasury bill/ Bond
Commission from sale of BSP /PSP
Exchange gain (note - 25a.1) - including gain from FC dealings
Settlement fees / Brokerage
25a.1
2,429,444,757
59,713,167
52,419,765
52,597,120
33,937,621
24,627
2,628,137,057
Exchange gain
Exchange gain
Exchange gain-credit card
Less: Exchange loss

2012
26
2011
Consolidated other operating income




26a
Amount in Taka
1,017,962,459
652,092,975
45,785,187
142,828,652
320,683
294,300
859,572
-
37,050,816
328,617
3,446,744
1,101,978,717
798,991,288
6,304,685
201,195,485
220,364,527
88,912,804
39,803,095
135,174,145
35,206
149,696,068
3,862,312
172,614,132
1,017,962,459
5,457,287
60,034,388
197,319,531
55,246,951
34,549,851
100,527,229
111,233
106,866,438
50,520
91,929,547
652,092,975
Other operating income of the Bank

Rent recovered
Service and other charges
Retail Income
Income from ATM service
Credit card income (note-26a.2)
Postage / telex / SWIFT/ fax recoveries
Incidental charges
Rebate from foreign Bank outside Bangladesh
Profit on sale of fixed assets
Miscellaneous earnings (note-26a.1)
26a.1
Miscellaneous earnings include syndication fee, commission from foreign remittance house / bank, notice fee
and sale proceeds of various items, etc.
26a.2
Credit card income

Annual fees
Inter-change fees
Others
27
16,812,014
882,734
18,873,535
13,472,340
2,203,976
39,803,095
34,549,851
2,673,292,974
2,057,720,184
Consolidated salaries and allowances




27a
22,108,347
34,528,694
13,586,783
19,563,859
20,152,371
19,415,520
31,718,629
4,737,211
15,287,014
16,600,039
5,551,162
2,780,540,201
2,131,614,239
1,091,326,503
809,496,228
444,844,951
98,711,190
1,914,102
227,000,000
2,673,292,974
773,582,044
580,941,549
482,885,431
68,284,661
2,026,499
150,000,000
2,057,720,184
Salaries and allowances of the Bank

Basic pay
Allowances
Bonus
Banks contribution to provident fund
Retirement benefits
Gratuity

2012
28
28,570,418
339,295
110,800
2,020,048
1,309,766
41,201
32,391,528
16,312,942
415,014
38,200
828,514
627,619
337,667
18,559,956
18,810,119
9,760,299
28,570,418
9,963,755
6,349,187
16,312,942
127,601,535
1,520,411
1,162,653
1,502,209
1,079,758
1,600,084
134,466,650
132,056,013
1,886,219
633,364
2,447,401
862,564
165,402
138,050,963
13,378,380
39,380,812
54,895,205
18,930,111
1,017,027
127,601,535
17,456,614
48,587,510
46,216,884
18,457,953
1,337,052
132,056,013
304,366,321
1,472,157
202,144
1,458,981
798,382
181,151
308,479,135
298,731,953
2,383,560
462,178
504,960
807,192
214,629
303,104,472
Postage, stamp, telecommunication, etc. of the Bank

Postage
Telegram, telex, fax and e-mail
Data communication
Telephone - office
Telephone - residence
31
186,694,137
7,998,996
107,582,930
65,291,954
367,568,017
Consolidated postage, stamp, telecommunication, etc.

30a
222,399,771
8,160,897
112,543,348
87,769,132
430,873,148
Legal expenses of the Bank

Legal expenses
Other professional charges
30
367,568,017
10,451,172
1,987,182
7,813,495
12,175,298
3,463,147
403,458,311
Consolidated legal expenses

29a
430,873,148
11,274,109
3,449,462
10,667,015
12,652,718
5,366,562
474,283,014
Rent, taxes, insurance, electricity, etc. of the Bank

Rent, rates and taxes
Lease rent
Insurance
Power and electricity
29
2011
Consolidated rent, taxes, insurance, electricity, etc.

28a
Amount in Taka
Consolidated stationery, printing and advertisements, etc.


Amount in Taka
2012
2011
31a
Stationery, printing and advertisements, etc. of the Bank
Office and security stationery
Computer consumable stationery
Publicity and advertisement

32
Basic salary
Bonus
House rent allowance
Utility allowance
House maintenance allowance
Others
33
Consolidated Directors fees


33a
Directors fees of the Bank
Meeting fees
Other benefits
5,940,000
5,029,000
1,320,000
1,348,667
960,000
1,032,667
11,448,000
9,192,067
5,152,571
3,569,924
18,975
26,700
304,366,321
1,848,000
624,000
756,000
46,200
-
5,217,746
1,715,000
298,731,953
905,000
687,733
189,000
103,000
-
3,699,624
1,890,000
575,000
522,500
69,000
76,300
5,152,571
115,000
256,547
187,516
Auditors fees of the Bank

External Audit fee
Loan -written off

Interest waived
36
128,375,478
Consolidated Auditors fees
35
144,107,123
1,679,924
34a
93,472,472
76,884,003
3,437,571
Each Director is paid Tk.5,000/- per meeting per attendance.

34
97,835,991
62,423,207
Consolidated depreciation and repair of Banks assets
319,455
3,569,924
62,700
206,010
295,156
149,839
1,522,518
1,312,505
575,000
522,500
575,000
522,500
331,708,120
271,478,216
2,510,397
1,121,309
6,351,755
2,233,559
6,603,129
2,169,052
2,760,602
2,647,076
345,856,437
284,073,883
292,004
55,101

Amount in Taka
2012
2011
36a

Amortization -(see annexure-C for detail)
Software-ATM
Repairs
Building
Office equipment
Banks vehicles
Maintenance
37
Consolidated other expenses

37a
Other expenses of the Bank

Security and cleaning
Entertainment
Car expenses
ATM expenses
Retail expenses
Books, magazines and newspapers, etc.
Liveries and uniforms
Medical expenses
Bank charges and commission paid
Loss on sale of fixed assets
Finance charge for lease assets
House furnishing expenses
Subscription to institutions
Donations
Traveling expenses
Expenses for merchant banking
Local conveyance, labor, etc.
Business development
Training and internship
Remittance charges
Cash reward to branches
Laundry, cleaning and photographs, etc.
Credit card expenses
Consolidated salary (staff)
Exgratia
Welfare fund
Miscellaneous expenses
251,542,211
197,628,609
24,056,251
2,831,280
26,887,531
23,320,407
2,823,544
26,143,951
3,964,557
3,041,227
26,522,967
9,020,713
10,728,914
53,278,378
331,708,120
4,137,754
5,628,106
24,256,541
7,420,205
6,263,050
47,705,656
271,478,216
1,027,527,828
12,942,088
10,602,090
6,126,397
9,660,191
1,156,422
1,068,015,016
974,998,715
24,435,919
4,601,896
3,253,195
2,890,284
504,617
1,010,684,627
130,803,436
61,824,950
125,497,534
110,491,112
81,319,178
2,079,747
289,508
63,981
9,737,272
2,755
2,663,894
3,292,671
10,683,133
17,209,194
32,980,211
11,816,537
34,037,537
29,615,867
16,220,803
9,196,817
6,481,666
5,729,029
39,682,609
27,351,178
470,203
12,154,041
10,672,000
213,405,000
21,755,965
1,027,527,828
109,739,315
63,403,977
90,273,502
75,129,985
96,229,925
1,737,214
486,314
287,968
10,373,817
216,836
3,932,865
3,173,226
8,901,562
12,905,540
23,966,389
12,750,590
26,612,003
17,448,135
13,736,209
8,139,212
5,160,000
5,176,223
39,180,836
26,575,532
1,262,856
9,961,042
13,600,000
271,900,000
22,737,643
974,998,715

Amount in Taka
2012
2011
38
Consolidated provision for loans, investments,off balance sheet

exposure & other assets
Provision for bad and doubtful loans and advances / investments-PBL (note-38a)
Provision for unclassified loans and advances / investments-PBL (note-38a)
Provision for off-balance sheet exposure-PBL (note-38a)
Provision for diminution in value of investments-PBL (note-38a)
1,490,000,000
226,000,000
240,000,000
305,000,000
140,000,000
130,000,000
43,797,548
Provision for diminution in value of investments-PBIL
(74,084,236)
388,952,446
Provision for impairment of client margin loan-PBIL
178,586,273
3,232,978
988,820
597,088
Provision for diminution in value of investments-PBSL

Provision for impairment of client margin loan-PBSL
Provision for other assets (note-38a)
1,301,942,300
3,324,071,951
1,050,941,266
As per the Press release # SEC/Mukhopatro/2011/662 and SEC/Mukhopatro/2011/696, dated 29 January 2013 and 19 February
2013 respectively of Bangladesh Securities and Exchange Commission, 20% provision has been made by Prime Bank
Securities Limited while Prime Bank Investment Limited made 100% provision on diminution in value of investments and 20%
provision made on impairment of client margin loan.
38a
Provision for loans, investments, off balance sheetexposure &

other assets of the Bank
Provision for bad and doubtful loans and advances / investments
Provision for unclassified loans and advances / investments
Provision for off-shore banking units
Provision for off-balance sheet exposure
39
226,000,000
240,000,000
305,000,000
140,000,000
130,000,000
43,797,548
1,301,942,300
3,215,739,848
661,000,000
2,449,800,000
2,907,320,000
154,052,683
255,939,030
15,685,310
8,170,117
859,495
(250,096)
Consolidated tax expenses
Current tax

8,803,282
599,735
2,629,200,771
3,171,778,786
186,300,000
224,500,000
(16,975)
665,885
Deferred tax

39a
1,490,000,000
Tax expenses of the Bank

Current tax
Deferred tax
186,283,025
225,165,885
2,815,483,796
3,396,944,671
2,449,800,000
2,907,320,000
186,300,000
224,500,000
2,636,100,000
3,131,820,000

Amount in Taka
2012
40
Consolidated Receipts from other operating activities

1,775,963,262
1,698,153,270
94,610,779
208,855,998
10,654,647
2,354,312
320,683
344,331

37,050,816
3,446,744
1,918,600,187
1,913,154,655
6,304,685
5,457,287
296,467,137
60,034,388
39,803,096
34,549,851
Retail Income
220,364,527
197,319,531
Income from ATM services
296,531,804
55,246,951
Postage / Telex / Fax / SWIFT charge recoveries
135,174,145
100,527,229
35,206
111,233

40a
Receipts from other operating activities of the Bank

Rent recovered
Credit card income
Incidental charges
41
Rebate from foreign Bank outside Bangladesh
149,696,068
106,866,438
Gain from sale of treasury bond / shares
455,110,150
1,046,060,296
Miscellaneous earnings
176,476,444
91,980,066
1,775,963,262
1,698,153,270
1,355,446,797
1,369,935,123
27,323,852
37,354,024
15,419,971
10,407,840
20,865,705
14,985,593
25,770,307
36,905,228
Consolidated payments for other operating activities

41a
8,351,785
4,849,656
1,453,178,417
1,474,437,464
430,873,148
367,568,017
Payments for other operating activities of the Bank

Rent, rates and taxes
Legal expenses
Postage and communication charges, etc.
Directors fees
Other expenses
42
2011
28,570,418
15,067,449
127,601,536
132,056,013
5,152,571
3,569,924
763,249,124
851,673,720
1,355,446,797
1,369,935,123
(13,647,964,993)
(10,643,375,389)
(Increase) / decrease of consolidated other assets

Inter-company capital
14,030,152
39,402,808
87,583,771
(104,667,976)
9,227,793
(35,523,557)

(3,445,866)
511,307
4,584,909
(2,196,579)
566,986,901
(1,150,083)
(12,968,997,333)
(10,746,999,469)

42a
(Increase) / decrease of consolidated other assets of the Bank

T & T bonds
41,560,619,018
30,044,160,955
185,487,221
153,215,481
Suspense account
166,334,111
431,245,616
Branch adjustment account

Encashment of PSP / BSP
Credit card
Sundry assets
43
Increase / (decrease) of consolidated other liabilities


61,205,540
259,196,282
90,683,814
6,681,509,089
49,027,547,468
15,110,147
123,571,698
153,725,551
78,050,003
4,380,503,024
35,379,582,475
(13,647,964,993)
(10,643,375,389)
786,096,248
1,085,124,521
(6,205,212)
52,074,061
(129,311,326)
(211,020)
415,961,924
5,629,702
(5,137,884)
685,431,691
1,557,180,763
2,198,309,830
1,545,582,036
78,241,570
84,951,171
Unearned commission on bank guarantee
126,153,370
45,760,373
620,359,575
Increase / (decrease) of other liabilities of the Bank

F.C. held against EDF L/C
Exchange equalization fund

Provision for bonus
Other provision
44
22,512,393
18,726,511

43a
Amount in Taka
2012
2011
Consolidated earnings per share (CEPS)

Net profit after tax (Numerator)
Number of Ordinary shares outstanding (Denominator)

Consolidated earnings per share (CEPS)
16,336,490
9,647,201
3,528,439
4,523,326
2,115,248
388,462,283
457,199,437
3,421,173,829
2,635,077,581
2,700,405,687
3,688,952,436
2.89
3.94
786,096,248
935,771,469
494,945,990
1,085,124,521
935,771,469
Earnings per share has been calculated in accordance with BAS - 33: Earnings Per Share (EPS). Previous years figures
have been adjusted for the issue of bonus shares during the year.
44a
Earnings per share (EPS) of the Bank
Net profit after tax (Numerator)
Number of Ordinary shares outstanding (Denominator)

2,698,992,305
3,634,129,909
2.88
3.88
935,771,469
935,771,469
Earnings per share has been calculated in accordance with BAS - 33: "Earnings Per Share (EPS)". Previous year's figures
have been adjusted for the issue of bonus shares during the year.
45
46
Number of employees of the Bank
The number of employees engaged for the whole year or part thereof who received a total remuneration of Tk. 36,000 p.a.
or above were 2,544.
Assets pledged as security for liabilities of the Bank
Treasury bills & bonds to Bangladesh Bank for Repo
7,404,350,307
7,443,355,097

47
Disclosure on Audit Committee of the Bank

a)
Particulars of Audit Committee

The audit committee of the Board was duly constituted by the Board of Directors of the Bank in accordance with the
BRPD Circular no. 12 dated December 23, 2002 of Bangladesh Bank.
Pursuant to the BRPD Circular no. 08 dated 19.06.2011 and SEC notification no. SEC/CMRRCD/2006-158/129/
Admin/44 dated August 7, 2012 on Corporate Governance, the current Committee is Constituted with the following
5 (Five) members of the Board:
Name
Status with bank
Status with
committee
Educational Qualification
Prof. Ainun Nishat
Director
Chairman
M.Sc. Engineer (Civil), Bangladesh University

of Engineering and Technology (BUET),
Ph.D. in Civil Engineering from University of
Strathclyde, Glasgow, U.K.
Mr. M. A. Khaleque
Director
Member
M. Com. CA (CC) ICAB
Mr. Khandker Mohammad

Khaled
Director
Member
B.Sc. Engineer (Mechanical), Bangladesh

University of Engineering and Technology
(BUET).
Mrs. Nazma Haque
Director
Member
B.A. University of Rajshahi.
Independent
Director
Member
B.A. (Hons.), M.A. University of Dhaka,

MS in Sociology on Rural Development,
Moscow University, Ph.D. from Bombay
University.
Prof. Dr. Mohammed Aslam

Bhuiyan
b) Meetings held by the Audit Committee during the year by date:
Meeting No
Held on
76th
09.02.2012
77th
14.02.2012
78th
11.04.2012
79th
13.05.2012
80th
25.07.2012
81st
17.09.2012
82nd
21.10.2012
83rd
17.12.2012

c)
Review by the Audit Committee and Recommended thereof:

i)
Review of the Internal Audit Plan for the year 2012 and suggested area of further concentration.
ii)
Review of the Internal Control function and recommend before the Board for enhancement of the activities
streamlining operational risk.
iii)
Review of all branch and Head office inspection reports as submitted by the Internal Control and Compliance
Division and advice management for timely implementation and follow up.
iv)
Review of the draft consolidated financial statements along with the external auditors and the management and
recommending it to the Board of Directors for consideration.
v)
Review the scope and general extent of the annual audit, including an explanation of risk factors considered, any
limitations on scope of work.
vi)
Review with the top management of the organizations policies and procedures to prevent illegal or unethical
activities, the quality of its personnel and the adequacy of staffing, key accounting policies and procedures,
internal controls, significant areas of risk, legal or regulatory matters that may have an impact on the financial
statements, and any other matters that may affect financial reporting.
vii)
Review of the Management Letter issued by Bangladesh Bank & External Auditors and Management response
thereto as part of compliance.
viii)
Review the results of the audit with external auditors, including material findings, changes to accounting
principles, changes to audit plan, disputes with management, unresolved issues and access to information.
ix)
Submission of compliance report on the minutes to the Board along with its decisions for information and
concurrence of the Board on quarterly basis.
x)
d)
Recommend the appointment of external auditors of the bank considering suitability and all other compliances.
Steps taken for implementation of an effective internal control procedure of the Bank :
i)
Review performance and portfolios of SME, Agriculture and Policy on Green Banking which has been declared
a thrust sector for the economy of the country.
ii)
Review the functioning of Human Resources Development Centre (Training Academy) at periodical interval for
its significance and contribution towards transformation of the resources in to Human Capital.
iii)
Review the performance of the Islamic Banking Branches and recommended introduction of Sharia Compliant
software.
iv)
Directed & ensured health checking of the IT System and taking measures for up gradation for efficiency &
effectiveness.
v)
Suggested software development for monitoring & following up compliance issues.
vi)
Advise Audit Teams to carry out Audit & Inspections of all Divisions of the Head Office including Prime Bank
Foundation alongside the branches and subsidiaries to ensure proper functioning as per laid down guidelines of
the Board and the regulators.

48
Related Party Disclosures of the Bank
i)
Names of the Directors together with a list of entities in which they have Interest
ii)
Significant contracts where Bank is a party and wherein Directors have interest during the year 2012
Annexure-E
(Figure in Taka)
Name of party
Relationship
Nature of transaction
Nil
iii)
Shares issued to Directors and Executives without consideration or exercisable at a discount
iv)
Related party transactions

Nature of party/ contract
v)
vi)
Amount
Relationship
Nil
Amount
Bangla Trac Ltd.
Common Director
6,355,000
Executive Motors Ltd.
Common Director
10,120,000
Lease agreement
Common Director
1,362,428
Lease agreement
Common Director
280,800
Lease agreement
Common Director
7,500,000
Lending policies in respect of related party

a) Amount of transaction regarding loans and advances, deposits, guarantees and commitment
as on 31.12.2012
Nil
b) Amount of transactions regarding principal items of deposits, expenses and commission
Nil
c) Amount of provision against loans and advances given to related party
Nil
d) Amount of guarantees and commitments arising from other off-balance sheet exposures
Nil
Disclosure of transaction regarding Directors and their related concerns

Name of Party
Relation
Type of
Loan
Status of
the loan
Balance as on
31.12.2012 (Tk. In Lac)
Limit
Outstanding
Nil
Nil
Market Value Of
Collateral Security (Tk.
in Lac)
Nil
vii)
Business other than banking business with any relation concern to the Directors as per Section 18(2) of the Bank
Companies Act, 1991.
a)
Lease agreement made with the Sponsor Director & Depositor Director
Nature of contract
Branch Name
Name of Director and

related by
Remarks
Lease agreement
Jubilee Road
Branch
Mr. Md. Nader Khan

Director & owner of the
premises
Lease period:
01.08.2012 to
31.07.2015
Lease agreement
ATM Booth
Jubilee Road Branch
Mr. Md. Nader Khan

Director & owner of the
premises
Lease period:
12.10.2011 to
11.10.2021

Nature of contract
Lease agreement
b)
Branch Name
Name of Director and

related by
Remarks
Gulshan Branch
Prof. Ainun Nishat

(Depositor Director)
Prof. Ainun Nishat was

not a Director of the
Bank when the lease
agreement was executed
in 2002. However, Mr.
Ainun Nishat became a
Depositor Director on 19
March 2009. He is one of
the co-sharer of the lease
premises.Lease period:
01.09.2011 to 31.08.2014
Service receiving companies where the Directors interest subsisted during the year
Name of party
Relationship
Nature of transaction
Bangla Trac
Common Director
Procurement of Generators
6,355,000
Common Director
Procurement of Vehicles
10,120,000
viii
Investment in the Securities of Directors and their related concern
49
Workers Participation Fund and Welfare Fund
Amount
Nil
SRO-336-AIN/2010 dated 5-10-2010 issued by Ministry of Labor and Employment and published in Bangladesh gazette
on 7-10-2010 declaring the status of business of certain institutions and companies (like mobile operating companies,
mobile network service providing company, all Govt. and Non-govt. money lending companies, all insurance companies
etc. ) as Industrial Undertakings for the purposes of Chapter-XV of the Bangladesh Labour Act, 2006 which deals with
the workers participation in companys profit by way of Workers Participation Fund and Welfare Fund (WPFWF). The
Bangladesh Labour Act, 2006 requires the Industrial Undertakings to maintain provision for workers profit participation
fund @ 5% on net profit. However, we have obtained legal opinion from Legal advisor in this regard where it has been
stated that Prime Bank Limited does not fall under this category. Therefore, no provision in this regard has been made in
the financial statements during the year under audit.
50
Events after the Reporting Period

The Board of Directors in its 393rd meeting decided to recommend payment of 10% (ten) cash and 10% (ten) stock
dividend for the year 2012. The total amount of dividend is Tk.1,871,542,938 ( One hundred eighty seven crore fifteen lac
forty two thousand nine hundred thirty eight) only.
Chairman
Director
Director
Managing Director

CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
Banca Nazio, del Lavoro, Rome, Italy
Bank of Bhutan, Bhutan
Bank of Tokyo Mitsubishi, Japan
SMBC, Tokyo, Japan
Citibank N.A., Mumbai, India
Citibank N.A., London , UK
Citibank N.A., New York, USA (Off-shore Banking)
Commerz Bank AG, Frankfurt , Germany
Commerz Bank AG, Frankfurt , Germany
Commonwealth Bank of Australia, Australia
Credit Suisse (First Boston), Switzerland
Habib American Bank, New York, USA
Habib Metropolitan Bank, Karachi
HDFC Bank Limited, Kolkata, India
HSBC Bank USA, New York, USA
HSBC Bank Middle East Ltd., Karachi, Pakistan
HSBC PLC, London, UK
HANA Bank, Seoul
ICICI Bank Ltd, Mumbai, India
Intesa Sanpaolo SPA, Milano, Italy
J. P. Morgan Chase Bank, New York
Mashreq Bank PSC, New York, USA
Mashreq Bank PSC, Mumbai, India
Account
type
AB Bank Ltd., Mumbai, India
Name of the Bank
US$
US$
US$
EURO
US$
US$
GBP
US$
US$
US$
US$
US$
CHF
AUD
US$
EURO
US$
US$
EURO
US$
JP
JP
US$
EURO
US$
Currency
type
118,085.19
6,607,151.77
471,711.91
3,553.39
128,939.05
47,036.37
387,626.21
1,062.54
1,898,121.50
402,232.55
226,879.79
99,283.64
67,793.61
60,801.35
3,143.62
515,962.41
5,383.59
701,894.44
137,281.93
7,786.98
11,252,355.00
9,305,045.00
151,162.89
6,712.46
4,107.04
FC
amount
79.8499
79.8499
79.8499
105.5696
79.8499
79.8499
129.1013
79.8499
79.8499
79.8499
79.8499
79.8499
87.4301
82.7804
79.8499
105.5696
79.8499
79.8499
105.5696
79.8499
0.9278
0.9278
79.8499
105.5696
79.8499
Exchange
rate
2012
9,429,091
527,580,408
37,666,149
375,130
10,295,770
3,755,849
50,043,048
84,844
151,564,812
32,118,229
18,116,329
7,927,789
5,927,202
5,033,160
251,018
54,469,945
429,879
56,046,201
14,492,798
621,790
10,439,935
8,633,221
12,070,342
708,632
327,947
Equivalent
Taka
158,174.58
5,444,110.45
126,583.64
5,082.52
399,970.72
135,101.81
31.04
1,121,562.62
341,454.06
410,097.75
155,671.37
43,675.41
23,888.93
7,560.79
282,891.31
5,383.59
219,874.59
88,700.47
89,410.49
4,650,183.00
3,135,124.00
51,203.89
9,463.23
81,175.91
FC
amount
Balance with other banks-Outside Bangladesh (Nostro Account) of Prime Bank Limited
81.8529
81.8529
81.8529
105.9095
81.8529
81.8529
126.4627
81.8529
81.8529
81.8529
81.8529
81.8529
86.8097
82.5896
81.8529
105.9095
81.8529
81.8529
105.9095
81.8529
1.0503
1.0503
81.8529
105.9095
81.8529
Exchange
rate
2011
12,947,048
445,616,228
10,361,238
538,287
32,738,763
17,085,340
2,541
91,803,153
27,949,005
33,567,690
12,742,153
3,791,449
1,972,977
618,873
29,960,877
440,662
17,997,373
9,394,222
7,318,508
4,884,087
3,292,821
4,191,187
1,002,246
6,644,484
Equivalent
Taka
Annexure-A
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
The National Commercial Bank, Jeddah
Nepal Bangladesh Bank Ltd., Kathmandu, Nepal
Peoples Bank, Colombo, Sri Lanka
Skandinaviska Enskilda, Banken, Sweden
Sonali Bank, Kolkata, India
Standard Chartered Bank, Kolkata, India
Standard Chartered Bank, New York, USA
Standard Chartered Bank, Singapore
Standard Chartered Bank, Frankfurt, Germany
State Bank of India, Kolkata
The Bank of Nova Scotia, Canada
Unicredito Italiano SPA, Milano, Italy
Wells Fargo Bank N. A., New York
Total
CD
National Westminister Bank, London, UK
Name of the Bank
Account
type
US$
EURO
CAD
US$
EURO
SG$
US$
US$
US$
SEK
US$
US$
SAR
GBP
Currency
type
484,070.18
326,121.12
82,554.46
2,034,914.70
695,549.18
72,637.33
114,552.24
215,658.58
714,735.53
84,290.24
158,577.00
150,869.68
FC
amount
79.8499
105.5696
80.1062
81.8529
105.5696
65.2368
79.8499
79.8499
79.8499
12.2482
79.8499
79.8499
21.2910
129.1013
Exchange
rate
2012
1,392,741,405
38,652,955
34,428,476
8,715,241
132,751,323
55,539,532
5,800,084
9,146,985
2,641,429
57,071,561
6,730,567
3,376,263
19,477,472
Equivalent
Taka
396,379.83
30,468.70
50,979.54
205.08
27,305.51
3,278,013.08
532,117.76
289,137.20
199,398.41
161,782.68
130,855.28
89,028.24
58,500.00
61,321.34
FC
amount
Balance with other banks-Outside Bangladesh (Nostro Account) of Prime Bank Limited
81.8529
105.9095
79.8955
81.8529
105.9095
63.0365
81.8529
81.8529
81.8529
11.8404
81.8529
81.8529
21.8257
126.4627
Exchange
rate
2011
1,138,637,962
32,444,839
3,226,925
4,073,036
16,786
2,891,913
206,634,472
43,555,382
23,666,718
16,321,338
1,915,572
10,710,884
7,287,220
1,276,803
7,754,862
Equivalent
Taka
Annexure-A (contd)
Reconciliation Statement of Balance with Bangladesh Bank

Annexure-A-1
1)
Balance with Bangladesh Bank-Taka account of the Bank

Detail
Total
Balance as per Bank ledger
10,816,492,170
Unresponded debit entries in

Bangladesh Bank statement
Prime Banks ledger
2,049,697
71,556,167
73,605,864
10,742,886,306
Unresponded credit entries in

Prime Banks ledger
49,220,742
27,966,237
Balance as per Bangladesh Bank statement
2)
77,186,979
10,820,073,285
Balance with Bangladesh Bank-Foreign currency of the Bank

Balance as per Bank ledger
2,881,505,675
Unresponded debit entries in

Prime Banks ledger
1,735,633
1,735,633
2,879,770,042
Unresponded credit entries in

Prime Banks ledger
Balance as per Bangladesh Bank statement
104,118,057
499,303,475
603,421,532
3,483,191,573
Investment in shares of the Bank

Annexure-B
SL.
No.
Name of the Company
Face
Value
No of
shares
Cost / present
value of
holdings
Average
cost
Quoted rate
per share as
on 31.12.12
Total market
value as at
31.12.12
Quoted:
1
AB Bank Ltd.
10
800,000
32,918,300
41.15
33.70
26,960,000
Bank Asia Ltd.
10
700,000
17,987,037
25.70
21.50
15,050,000
BRAC Bank Ltd.
10
600,000
21,243,239
35.41
34.80
20,880,000
The City Bank Ltd.
10
600,000
18,648,926
31.08
26.80
16,080,000
DESCO
10
349,550
27,121,550
77.59
72.10
25,202,555
Dhaka Bank Ltd.
10
700,000
20,855,770
29.79
24.80
17,360,000
Eastern Bank Ltd.
10
762,000
29,608,038
38.86
31.70
24,155,400
Federal Insurance Compnay

Bangladesh Ltd.
10
2,241
20,380
9.09
27.20
60,955
Jamuna Bank Ltd.
10
600,000
14,338,010
23.90
21.70
13,020,000
10
Lanka Bangla Finance Ltd.
10
350,000
23,395,426
66.84
59.00
20,650,000
11
National Bank Ltd.
10
700,000
21,314,190
30.45
22.10
15,470,000
12
NLI First MF
10
998,000
9,980,000
10.00
9.20
9,181,600
13
One Bank Ltd.
10
700,000
19,867,211
28.38
22.80
15,960,000
14
Uttara Bank Ltd.
10
800,000
37,009,980
46.26
38.10
30,480,000
Sub Total
294,308,058
250,510,510
Unquoted:
1
Central Depository Bangladesh Ltd.
Investment in SWIFT
Sub Total
Total
10
4,569,443
15,694,430
3.43
15,694,430
4,184,430
4,184,430
19,878,860
19,878,860
314,186,918
270,389,370
2,946,983
1,607,562
1,410,371
5,964,916
4,794,586,381
197,956,054
28,235,444
226,191,498
5,020,777,879
2,517,405,010
Software-Amortization
Software-Core Banking
Software-ATM
Sub-total
As at 31 December 2012
31,690,384
31,690,384
Off-shore
Vehicles
Sub-total
Leased Vehicles
132,396,714
17,092,221
149,488,935
ATM
2,505,029,178
28,784,009
28,784,009
666,354,778
30,025
30,025
637,570,769
79,101,786
16,977,873
96,079,659
5,000,000
218,590,888
77,060,865
125,001,090
115,784,357
23,885
541,461,085
Taka
Taka
2,195,907,410
543,182,545
617,233,126
1,032,982,037
216,602,023
1,535,005
4,607,442,146
Land
Building
Vehicles
Library books
Particulars
Additions
during the year
Opening balance
as on 01.01.12
COST
1,656,308
6,997,064
6,997,064
432,000
6,565,064
6,997,064
Taka
Disposals/
adjustments
during the
year
Schedule of Fixed Assets of the Bank

5,020,777,879
226,740,063
28,235,444
254,975,507
5,680,135,593
2,946,983
1,637,587
1,410,371
5,994,941
5,425,160,086
31,690,384
31,690,384
211,498,500
34,070,094
245,568,594
Taka
2,200,907,410
761,773,433
694,293,990
1,157,551,128
325,821,316
1,558,890
5,141,906,167
Total balance as
at 31.12.12
822,710,309
65,718,751
9,451,209
75,169,960
1,045,319,389
905,337
813,576
175,295
1,894,208
970,149,429
16,528,972
16,528,972
73,114,196
2,885,805
76,000,001
10,573,740
235,669,447
540,326,749
88,135,476
1,020,835
875,726,248
Taka
Opening
balance as on
01.01.12
23,772,560
24,056,251
2,831,280
26,887,531
78,429,742
256,615
185,560
282,076
724,250
251,542,211
6,014,754
6,014,754
33,284,158
2,645,313
35,929,471
14,312,215
41,886,296
113,761,985
38,802,110
111,130
208,873,736
Taka
Charge for
the year
1,163,479
6,962,808
6,962,808
397,745
6,565,063
6,962,808
Taka
Disposals/
adjustments
during the
year
DEPRECIATION
1,045,319,389
89,775,002
12,282,489
102,057,491
1,316,786,323
1,161,952
999,136
457,371
2,618,459
1,214,728,832
22,543,726
22,543,726
106,398,353
5,531,119
111,929,472
24,885,956
277,555,743
653,690,989
120,372,523
1,131,965
1,077,637,176
Taka
Total balance
as at 31.12.12
3,975,458,490
136,965,061
15,952,955
152,918,016
4,363,349,270
1,785,031
638,451
953,000
3,376,482
4,210,431,254
9,146,658
9,146,658
105,100,147
28,538,975
133,639,122
Taka
2,200,907,410
736,887,477
416,738,247
503,860,139
205,448,793
426,925
4,064,268,991
Net book value

as at 31.12.12
Annexure-C
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Total
2002-2003
2001
2013-2014
1995
to
2000
2012
Assessment
year
Accounting
year
13,926,551,971
2,449,800,000
2,866,502,255
2,285,000,000
1,735,000,000
1,012,449,724
1,015,000,000
592,362,815
557,500,000
482,287,856
348,903,919
312,590,120
268,743,630
3,317,922,403
1,076,933,945
481,412,744
346,638,537
482,287,856
348,903,919
312,590,120
268,743,630
411,652
Taka
Taka
411,652
Tax as per
assessment
order
Tax provision
as per accounts
Statement of tax position of the Bank

11,192,801,601
1,000,000,000
2,193,417,798
2,033,288,558
1,432,194,785
915,627,471
1,019,804,475
737,606,389
470,158,263
438,405,004
342,757,186
337,138,495
247,455,962
24,947,215
Taka
Tax paid
(259,877,589)
(61,933,945)
110,950,071
210,861,463
Taka
Excess/
(shortage)
of provision
198,449,090
(102,313,148)
(57,129,470)
256,193,645
123,519,726
(43,882,852)
(6,146,733)
24,548,375
(21,287,668)
24,947,215
Taka
Excess/
(shortage)
of tax paid
Submission of tax return is yet not due

Excess
provision of Tk. 259,877,589 in earlier years has been
adjusted against the provision of 2012.
Return filed but the assessment is yet to complete

Excess payment of Tk. 102,313,148 in earlier years will be
adjusted against the tax provision of 2011
Appealed against some disallowances made by the DCT

before the Appellate Tribunal
Return filed but the assessment is yet to complete
Appealed against some disallowances made by the DCT

before the Appellate Tribunal
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Assessment year 1999-2000 is final but the Tax Authority

referred it to High Court Division.
Present status
Annexure-D
Name of Directors and their

interest in different entities of the Bank
Sl
no.
Name of Directors
Status with
PBL
Mr. M. A. Khaleque
Vice Chairman
Vice Chairman
Director
Director
Chairman
Entities where they have interest

China - Bangla Ceramic Industries Ltd.
Bengal Tiger Cement Industries Ltd.
Bajnabo Textiles Mills Ltd.
Trustee Securities Ltd.
United Shipping Lines Ltd.
Rajanigondha Tanker Ltd.
Azbal International Ltd.
Rajanigondha Cargo Ltd.
Peoples Leasing and Financial Services Ltd.
Total Merchandizing & Trims Ltd.
Fareast Finance & Investment Limited
Fareast Stocks & Bonds Limited
Maksons Bangladesh Limited
Maksons Associates Limited
Prime Property Holdings Limited
PFI Properties Limited
Prime Prudential Fund Limited
Prime Financial Securities Limited
GETCO Limited
GETCO Agro Vision Limited
GETCO Fibers Limited
GETCO Power Limited
GETCO Elevator Company Limited
GETCO Agri Technologies
GETCO Online Limited
HRC Technologies Limited
Meghna Light Industrial Products Limited
Meghna Components Ltd.
Meghna Wheels Ltd.
Meghna Cycle Industries Limited
Meghna Bangladesh Ltd.
Uniglory Cycle Components Ltd.
Uniglory Wheels Ltd.
Meghna Rubber Ind. Ltd.
Uniglory Steel Products Ltd.
Trans-world Bi-cycle Co. Ltd.
Meghna Associates Limited
Mahin Cycle Industries Limited
Abrar Steel Industries Limited
Cycle Life Limited
Meghna Holdings Limited
Hola Limited
Uniglory Cycle Industries Limited
Meghna Mainetti Limited
M/S Meghna Bangladesh
Meghna Poly Propylene Limited
Meghna Tyres Limited
Meghna Innova Rubber Co. Ltd.
East Coast Trading (Pvt.) Ltd.
East Coast Shipping Lines Ltd.
EC Securities Limited
EC Distribution Limited
EC Bulk Carriers Ltd.
Parkensine Products Ltd.
Ben Lloyds Lines Ltd.
Bengal Tiger Cement Industries Ltd.
Prime Cement Ltd.
Lubricants Asia Ltd.
Annexure-E
%
of Interest
43.44
12.00
50.00
22.00
40.00
40.00
50.00
40.00
2.27
39.00
1.77
7.24
50.00
50.00
20.00
10.00
10.00
20.00
37.50
27.50
37.50
27.00
30.00
40.00
40.00
40.00
80.00
66.67
66.67
33.33
75.00
27.00
80.00
33.33
93.34
65.00
64.00
40.00
40.00
40.00
75.00
10.00
10.00
50.00
80.00
100.00
25.00
25.00
70.00
20.00
20.00
3.60
40.00
20.00
40.00
12.00
2.36
2.86
14.00
Sl
no.
6
Name of Directors
Mrs. Nazma Haque
Status with
PBL
Director
Director
Quazi Sirazul Islam
Director
Mrs. Salma Huq
Director
10
Mrs. Muslima Shirin
Director
11
Director

Asian Gate Limited
Annexure-E Continued
%
of Interest
30.00
Acorn Limited
THANE Technology Limited
25.00
25.00
Anirban Enterprise Ltd.

Greenland Engineers & Tractors Company Limited
Machinery & Equipment Trading Company Limited
GETCO Trading Limited
GETCO Limited
GETCO Agro Vision Limited
GETCO Telecommunications Limited
GETCO Power Limited
GETCO Jute Mills Ltd.
GETCO Fibers Limited
GETCO Fertilizers Limited
GETCO One Line Limited
GETCO Business Solutions Limited
GETCO Elevator Company Limited
GETCO Agri-Technologies Limited
GETCO Textile Mills Limited
GETCO Techno labs Limited
GETCO Venture International Limited
Greenland Technologies Ltd.
Green Power Generation Company Ltd.
Khaled Textile Mills Limited
Acorn Trading Company Limited
Eurasia Gate Limited
K.S. Engineering & Technology Limited
K.S. Consultant Limited
Shatata Enterprise Limited
Nirala Agro Fishing Limited
Easy Fly Express Limited
Fareast Finance & Investment Limited
Fareast Islami Life Insurance Co. Ltd.
Fareast Stocks & Bonds Limited
Amin Jewelers Limited
Ducati Apparels Limited
City Hospital Limited
Bangla Gold Limited
Asian Watch Limited
Amin Real Estate Ltd.
GQ Ball Pen Industries Limited
GQ Industries Limited
Maladesh International (Pvt.) Limited
GQ Foods Limited
GQ Enterprise Limited
Mawsons Limited
Eastern University
South East University
Mirzapur Resorts Ltd.
International Holdings Limited
Shepherd World Trade Limited
Australian International School
50.00
29.25
29.25
51.00
37.50
20.00
60.00
28.00
34.00
41.50
35.00
48.00
34.00
30.00
50.00
20.00
60.00
10.00
25.00
44.00
50.00
75.00
50.00
25.00
16.00
25.00
25.00
4.00
4.90
1.01
10.00
75.00
33.33
28.00
12.50
95.00
50.00
9.92
42.00
0.13
26.66
68.81
19.23
3.33
3.33
4.55
3.33
62.00
3.33
Citizen Securities & Investment Ltd.
16.00
Name of Directors and their

interest in different entities of the Bank
Annexure-E Continued
Sl
no.
12
Name of Directors
Mr. Md. Nader Khan
Status with
PBL
Director

Pedrollo NK Limited
40.00
Halda Valley Tea Company Limited
15.00
PNL Water Management Limited
35.00
PNL Holdings Limited
20.00
Polyexprint Limited
30.00
Polytape Limited
1.00
Pragati Corporation
13
Mr. Imran Khan
Director
100.00
Polyex Laminate Limited
2.00
Pedrollo Dairy & Horticulture Limited
2.00
0.67
Cider Education Services Ltd.
20.00
Pedrollo NK Limited
10.00
Halda Valley Tea Company Limited
15.00
PNL Water Management Limited
15.00
PNL Holdings Limited
20.00
Polyexprint Limited
15.00
Polytape Limited
1.00
Prima Enterprise
100.00
Polyex Laminate Limited
2.00
Pedrollo Dairy & Horticulture Limited
2.00

14
15
16
Mr. Nafis Sikder

Shipping Lines Limited)
Director
Director
Director
% of Interest
6.60
VIP Shahadat Cold Storage
50.00
VIP Shahadat Poultry & Hatchery
50.00
Palmal Packaging Ltd.
10.00
Marina Apparels Ltd.
99.00
Nafa Apparels Ltd.
99.00
M/S Ayesha Clothing Co. Ltd.
99.00
M/S Ayesha Fashion Limited
99.00
M/S Ayesha Washing Limited
99.00
M/S Safaa Sewing Limited
99.00
M/S Palmal Logistics
51.00
M/S Aswad Composite Mills Limited
95.00
M/S Cortz Apparels Limited
99.00
Palmal Garments Ltd.
43.75
Palmal Garments Hosiery Ltd.
43.75
Parkesine Products Limited
20.00
East Coast Trading (Pvt.) Ltd.
20.00
EC Securities Ltd.
3.60
Bangladesh Trade Syndicate Ltd.

EC Bulk Carriers Ltd.
7.50
20.00
MJL Bangladesh Limited
0.22
17
Prof. Ainun Nishat
Depositor
Director
18
Mr. Manzur Murshed
Depositor
Director
N/A
N/A
19
Prof. Dr. Mohammed Aslam

Bhuiyan
Independent
Director
N/A
N/A
N/A
N/A
Distribution of Profit under Islamic

Banking Operation
Annexure-F
Distribution of profit under Islamic Banking operation
Prime Bank is operating 05 (five) Islamic Banking branches based on Islamic Shariah, which absolutely prohibits receipts and
payments of interest in any form. The operation of these 05 (five) branches are totally different from other conventional banking
branches as they operate on the basis of profit sharing arrangement.
Fixation of final profit rate for the year 2012

Provisional profit are applied to the different types of depositors at the rates to be decided by the Bank from time to time taking
into consideration of the industry trend and that of the rates of other Islamic Banks in Bangladesh. Final rates of profit are
declared annually as at 31 December in every year on the basis of income earned from different investments and other business
by individual branches and distributed as per weightage of the different deposit products.
For the year ended 31 December 2012, 70% of total investment income shall be distributed to the different types of Mudaraba
depositors (except no cost fund) according to the weightage. The remaining 30% of the investment income will be retained by
the Bank as Management fee (25%) and Investment loss Off-setting Reserve (5%).
Final Profit rate for the year 2012 is given below:

Weightage
Final rate of profit

for the year
2012 (%)
Mudaraba Saving Deposits
0.75
8.46
Mudaraba Short Notice Deposits
0.52
5.87
Deposit types
Mudaraba Term Deposits

36
Months
1.00
11.28
24
Months
0.98
11.06
12
Months
0.96
10.83
06
Months
0.92
10.38
03
Months
0.88
9.93
01
Month
0.88
9.93
Mudaraba Education Savings Scheme
1.20
13.54
Mudaraba Monthly Contributory Savings Scheme
1.05
11.85
Mudaraba Monthly Benefit Deposit Scheme
1.02
11.51
Mudaraba Double Benefit Scheme
1.02
11.51
Mudaraba Hajj Savings Scheme
1.20
13.54
Mudaraba Lakhpoti Deposit Scheme
1.05
11.85
Mudaraba Millionaire Deposit Scheme
1.05
11.85
Mudaraba House Building Deposit Scheme
1.05
11.85
Prime Bank Limited-Islamic Branches

Balance Sheet as at 31 December 2012
Particulars
Notes
2012
Amount in Taka
Annexure-G
2011
PROPERTY AND ASSETS

Cash in hand
62,420,709
48,302,086

62,420,709
48,302,086
213,306
208,136
In Bangladesh
Outside Bangladesh
213,306
208,136
Government
Others
Placement with banks & other financial institutions
Investments in share & securities
Investments
General investments etc
12,907,804,605
12,546,603,759
761,805,137
722,057,259
13,669,609,742
13,268,661,018
Fixed assets including premises
39,803,189
40,705,631
Other assets
2,523,594,919
3,219,095,091
16,295,641,865
16,576,971,962
200,000,000
1,883,521,658
2,266,710,947
11,735,023,423
12,105,269,265

Total assets
Liabilities
Placements from other banks, financial institutions and agents
10
Mudaraba savings deposits

Mudaraba term deposits
Other mudaraba deposits
Al-wadeeah current deposits and other deposits accounts
Bills payable
2,498,804,441
1,781,332,574
128,706,901
145,661,582
16,246,056,423
16,298,974,368
49,585,442
77,997,594
16,295,641,865
16,576,971,962
Paid up capital
Statutory reserve
Other liabilities
Total liabilities
11
Revaluation gain / (loss) on investments
Revaluation reserve
Other reserve
16,295,641,865
16,576,971,962

Particulars
Notes
2012
Amount in Taka
2011
12
12.1
2,853,617,078
2,966,899,728
12.2
967,587,167
1,197,088,153
12.3
1,056,519,014
2,149,395,458
12.4
167,679,643
162,690,924
5,045,402,902
6,476,074,263
Undrawn formal standby facilities, credit lines and other commitments
Other commitments
5,045,402,902
6,476,074,263
Other commitments
Total Off-Balance Sheet exposure including contingent liabilities

Profit and Loss Account for the year ended 31 December 2012
Particulars
Notes
Annexure-G (i)
Amount in Taka
2012
2011
Investment income
13
2,521,281,958
2,240,087,775
Profit paid on deposits
14
(1,663,610,420)
(1,449,728,938)
857,671,538
790,358,837
Net investment income

Income from investment in shares / securities
15
100,413,925
114,103,631
16
51,165,583
49,233,842
1,009,251,046
953,696,309
17
95,254,697
71,380,374
18
12,118,962
10,637,645
Legal expenses
19
211,615
175,870
20
9,397,036
8,476,519
21
5,346,313
6,019,816
Chief Executives salary and fees
Directors fees & expenses
Shariah supervisory committees fees and expenses
Auditors fees
Charges on investment losses
22
23
9,365,464
8,368,617
15,858,328
15,314,304
147,552,415
120,373,145
861,698,631
833,323,164
Specific provision
General provision
Other provisions
Total provision (D)
861,698,631
833,323,164
Zakat expenses
Other expenses
Provision for investments
24
25

Cash Flow Statement for the year ended 31 December 2012
Particulars
A)

Investment income receipts in cash
Dividend receipts
Recoveries of investments previously written off
Income taxes paid
Cash generated from operating activities before changes
in operating assets and liabilities
Statutory deposits
Investment to other banks
Investment to customers
Other assets
Deposits from other banks
Trading liabilities
Other liabilities
2012
Amount in Taka
2011
2,179,669,119
(1,661,136,450)
100,413,925
(95,254,697)
(5,346,313)
51,165,583
(40,199,922)
1,713,726,320
(1,230,889,597)
114,103,631
(71,380,374)
(6,019,816)
49,233,842
(42,972,956)
529,311,245
525,801,052
(400,948,724)
(27,059,588)
(1,813,162,649)
1,760,244,704
(28,412,152)
(509,338,409)
19,972,836
(1,917,534,519)
(2,723,942,943)
2,047,262,309
2,057,532,945
21,705,330
(514,976,877)
10,824,175
B)

Debentures
Proceeds from sale of securities
(5,849,042)
(5,849,042)
(9,098,727)
(9,098,727)
C)

Dividend paid
Net Cash from financing activities
14,123,793
48,510,222
62,634,015
1,725,448
46,784,774
48,510,222
62,420,709
48,302,086
213,306
62,634,015
208,136
48,510,222
D)
E)
F)
G)

Prize bonds

-
Changes in accounting policy
Restated balance
Surplus / deficit on account of revaluation of properties
Surplus / deficit on account of revaluation of investments
Net gains and losses not recognized in the income statement
Cash dividend
Issue of share capital
Taka
Taka
Particulars
Statutory
reserve
Paid-up
Capital
Taka
Revaluation
reserve

Statement of Changes in Equity for the year ended 31 December 2012
Taka
Revaluation gain /
loss on investments
Taka
Retained
earnings
Taka
Total
Notes to the Financial Statements for the year ended 31 December 2012 (Please see PBL notes 1-2)
2012
1
Cash in hand
60,635,745
46,823,168
Sub-total (a)
62,420,709
48,302,086
Cash with Bangladesh Bank and its agents

Balance with Bangladesh Bank
Balance with Sonali Bank (as agent of Bangladesh Bank)
Sub-total (b)
Grand total (a+b)
Required CRR and SLR of Islamic Branches are maintained at Head Office
In Bangladesh (note-2.1)
Outside Bangladesh (note-2.2)

2.1
In Bangladesh
Short-term deposit accounts
ICB Islamic Bank Ltd., Motijheel, Dhaka
ICB Islamic Bank Ltd, Sylhet
Social Islami Investment Bank Ltd. Dhaka

Savings accounts
Al Arafah Islami Bank Ltd. Dhaka
Bank Al Falah Ltd. Dhaka
Social Islami Investment Bank Ltd. Dhaka

2.2
Outside Bangladesh (NOSTRO Accounts)
2011
i) In local currency
ii) In foreign currency
Amount in Taka
Investment in share & securities
Investments
a) In Bangladesh
Quard against TDR
Bai-Murabaha (cc pledge)
Bai-Muajjal (cc hypo)
Retail investment
Izara (note-5.2)
Bai-Salam (packing credit)

Staff investment
Hire purchase
b) Outside Bangladesh
1,784,964
1,478,918
62,420,709
48,302,086
213,306
208,136
213,306
208,136
15,599
15,599
12,433
12,210
18,971
47,003
63,492
36,109
66,702
18,971
46,780
61,296
35,416
64,644
166,303
161,356
213,306
208,136
997,689,634
692,899,102
4,450,284,608
3,929,345,733
3,058,092,259
3,189,486,454
673,512,624
640,978,677
775,652,281
74,271,401
125,249,403
2,753,052,395
1,811,287,478
112,671,581
100,878,183
2,069,056,551
12,907,804,605
12,546,603,759
12,907,804,605
12,546,603,759
757,557,115
686,031,463
4,248,022
761,805,137
13,669,609,742
36,025,796
722,057,259
13,268,661,018
Notes to the Financial Statements for the year ended 31 December 2012
2012
5.1
Investments under the following broad categories

Investments
Bai-Murabaha / Bai-Muajjal
Quard against TDR
Bills purchased and discounted (note-6)
5.2
Izara
Lease rental receivable within 1 year
Lease rental receivable within 5 years
Lease rental receivable after 5 years
Total lease / Izara rental receivable
Less: Unearned interest receivable
Net lease / Izara finance
5.3
Investments on the basis of significant

concentration including bills purchased and discounted.
a)
Investments to Directors of the Bank
b)
Investments to Chief Executive and
other executives & officers
c)
Investments to customer groups:
i)
Commercial investment
ii)
Export financing
iii) House building investment
iv) Retail investment
v) Small and medium enterprises
vi) Special program investment
vii) Staff investment
viii) Industrial investments
ix) Other investment
d)
5.4
Details of Industrial investments

i)
Agricultural industries
ii)
Textile industries
iii) Food and allied industries
iv) Pharmaceutical industries
v) Leather, chemical, cosmetics, etc.
vi) Tobacco industries
vii) Cement and ceramic industries
viii) Service Industries
ix) Transport and communication industries
x) Other industries including bills purchase and discounted
Investments -geographical location-wise

Inside Bangladesh
Urban
Dhaka Division
Chittagong Division
Khulna Division
Rajshahi Division
Barisal Division
Sylhet Division
Rural
Dhaka Division
Chittagong Division
Sylhet Division
Outside Bangladesh
Amount in Taka
2011
4,401,738,103
7,508,376,868
997,689,634
12,907,804,605
761,805,137
13,669,609,742
4,734,872,470
7,118,832,187
692,899,102
12,546,603,759
722,057,259
13,268,661,018
311,317,837
908,084,691
1,219,402,528
545,889,904
673,512,624
176,836,829
520,683,207
18,088,000
715,608,036
74,629,359
640,978,677
125,167,295
100,534,203
1,690,146,448
112,903,107
1,392,961,486
775,652,281
1,080,027,038
82,108
7,709,101,131
783,568,848
13,544,442,447
13,669,609,742
832,450,507
929,531,086
1,205,731,803
1,811,287,478
1,556,251,000
5,985,171,614
847,703,327
13,168,126,815
13,268,661,018
192,491,753
3,934,920,022
536,801,685
101,150,019
841,183,375
13,561,298
305,297,467
1,783,695,512
7,709,101,131
200,615,006
3,478,845,642
275,232,159
122,539,541
32,488,190
483,672,026
168,190,814
344,746,492
878,841,745
5,985,171,614
9,601,679,320
3,873,823,138
194,107,284
13,669,609,742
9,912,388,992
3,126,517,903
229,754,123
13,268,661,018
13,669,609,742
13,268,661,018
2012
5.5
2011
Details of pledged collaterals

Collateral of movable / immovable assets
Local banks and financial institutions guarantee
Export documents
Fixed deposit receipts
11,973,280,644
11,638,549,621
48,261,564
59,826,451
44,061,714
121,756,469
683,671,820
717,920,046
FDR of other banks
Personal guarantee
619,475,122
497,187,982
Other securities
5.6
Amount in Taka
300,858,878
233,420,449
13,669,609,742
13,268,661,018
12,701,014,178
12,538,050,331
920,334,000
497,190,238
48,261,564
233,420,449
13,669,609,742
13,268,661,018
125,249,403
100,534,203
125,249,403
100,534,203
311,786,384
65,061,000
97,528,306
21,485,100
Particulars of investments
i)
Investments considered good in respect of which the Bank is

fully secured
ii)
Investments considered good against which the Bank holds no

security other than the debtors' personal guarantee
iii)
iv)
v)
Investments considered good secured by the personal undertaking of one or

more parties in addition to the personal guarantee of the debtors
Investments adversely classified; provision not maintained
there against
Investments due by directors or officers of the banking company
or any of them either separately or jointly with any other persons
vi)
Investments due from companies or firms in which the directors of

the Bank have interest as directors, partners or managing agents or in
case of private companies, as members
vii)
Maximum total amount of investments, including temporary investment

made at any time during the year to directors or managers or officers
of the banking company or any of them either separately or jointly with
any other person.
viii)
Maximum total amount of investments, including temporary investments

granted during the year to the companies or firms in which the directors
of the banking company have interest as directors, partners or
managing agents or in the case of private companies, as members
ix)
Due from banking companies
x)
Classified investments
a)
Classified investments on which profit

has not been charged (note-5.7)
b)
xi)
Provision on classified investments (note-5.8)
c)
Provision kept against investments classified as bad debts
66,572,306
14,843,000
d)
Profit Suspense Account (note-11)
45,123,559
72,774,697
Opening Balance
Amount written off during the year
Amount realised against investments previously written off
The amount of written off investments
Cumulative amount of written off investments
for which law suits have been filed
2012
5.7
Amount in Taka
2011
Classification of investments
Unclassified
Standard including staff investment
13,156,437,869
13,111,506,018
201,385,489
92,094,000
13,357,823,358
13,203,600,018
189,449,012
33,615,000
Classified
Sub-standard
5.8
Doubtful
32,104,862
9,711,000
Bad / Loss
90,232,510
21,735,000
311,786,384
65,061,000
13,669,609,742
13,268,661,018
199,007,118
217,834,900
Particulars of required provision for investments
Status
Base
Rate
for provision
(%)
General Provision
Investments (Excluding SMA)
13,156,437,869
*Various
201,385,489
10,069,275
4,109,000
209,076,393
221,943,900
*General provision is kept @ 1% on general investments and 2% on small enterprise financing and 5% on consumer
financing.
Specific provision
Sub-standard
103,318,662
20
20,663,732
Doubtful
20,584,535
50
10,292,268
3,831,500
Bad / Loss
66,572,306
100
66,572,306
14,843,000
97,528,306
21,485,100
Required provision for investments
306,604,699
243,429,000
Provision maintained by Head Office
306,604,699
243,429,000
34,956,999
29,668,997

5.9
Particulars of required provision for Off-balance Sheet Exposures

Base
for provision
Rate
1%
3,495,699,949
Letter of guarantee
1,004,840,480
10,048,405
11,970,882
Letter of credit
1,682,087,711
16,820,877
21,493,955
Required provision on Off-balance Sheet Exposures
61,826,281
63,133,833
Provision maintained by Head Office
61,826,281
63,133,833
757,557,115
686,031,463

6
2,810,600

4,248,022
36,025,796
761,805,137
722,057,259
2012
7

Property, Plant & Equipment
Land
Building
Vehicles
Leased vehicles
Library books
ATM
Hardware & equipment
Furniture & fixture
Interior decoration
Less: Accumulated depreciation

Intangibles assets
Software-ATM
Cost of intangibles assets
Less: Accumulated amortization
Net book value at the end of the year
8
Other assets
Profit receivable
Advance income tax
Branch adjustments account
Migration account
Suspense account
Islamic transit account
Sundry assets

In Bangladesh
Outside Bangladesh
10

Deposits from banks (note -10.1.a)
Deposits from customers (note-10.1.b)
10.1
Amount in Taka
2011
7,752,957
14,099,795
11,834,066
5,701,027
414,533
811
39,803,189
7,951,751
13,361,043
11,377,346
6,944,037
1,070,333
1,120
40,705,631
39,803,189
39,803,189
40,705,631
40,705,631
39,803,189
40,705,631
306,281
341,612,838
104,062
2,257,019
1,000,059,777
683,312
1,178,571,630
2,523,594,919
362,381
526,361,454
3,673,148
2,644,960,989
(121,393)
107,795
43,750,717
3,219,095,091
200,000,000
200,000,000
1,811,423,535
14,434,632,888
16,246,056,423
3,624,586,184
12,674,388,184
16,298,974,368
477,642,721
333,780,814
1,000,000,000
1,811,423,535
855,358,468
769,257,716
1,999,970,000
3,624,586,184
a) Deposits from Banks

Al-wadeeah current deposits
Bills payable
Mudaraba special notice deposits
Mudaraba fixed deposits
2012
Sl No.
1
2
3
4
Name of Bank
Al Arafah Islami Bank Ltd
Bank Al-Falah
Social Islami Bank Ltd
Islami Bank Bangladesh Ltd
Sub Total
5
6
7
8
9
Exim Bank Ltd

ICB Islamic Bank Ltd
Social Islami Bank Ltd
Shahjalal Islami Bank Ltd
Islami Bank Bangladesh Limited
Sub Total
10
11
Al Arafah Islami Bank Ltd

Islami Bank Bangladesh Limited
Sub Total
Grand Total
b) Customer Deposits
i) Al wadeeah current deposits and other accounts
Al-wadeeah current deposits
Security deposits
Sundry deposits
ii) Bills payable
Pay orders issued
Pay slips issued
Demand draft payable
Foreign demand draft
T. T. payable
iii) Mudaraba savings deposits
iv) Mudaraba term deposits
Mudaraba fixed deposits
Mudaraba special scheme deposits
c) Deposits and other accounts

Deposits from customers (note-10.1.b.i)
Bills payable
Deposits from customers (note-10.1.b.ii)
Savings bank / mudaraba savings deposits
Deposits from customers (note-10.1.b.iii)
Type of Account
MSB
MSB
MSB
MSB
Amount in Taka
2011
53,202,185
11,231
418,318,007
6,111,298
477,642,721
11,168,569
584,671
837,689,105
5,916,123
855,358,468
MSND
MSND
MSND
MSND
MSND
20,759,196
2,049,567
7,809
288,840,944
22,123,298
333,780,814
22,307,715
1,978,848
8,730
235,597,457
509,364,966
769,257,716
MTDR
MTDR
1,000,000,000
1,000,000,000
1,999,970,000
1,999,970,000
1,811,423,535
3,624,586,184
576,646,553
131,027,883
591,119
1,790,538,886
2,498,804,441
510,694,300
81,493,770
8,091,331
1,181,053,173
1,781,332,574
126,215,349
70,594
2,420,958
128,706,901
1,405,878,937
141,131,970
70,594
4,459,018
145,661,582
1,411,352,479
7,152,959,411
628,218,239
2,620,064,959
10,401,242,609
14,434,632,888
16,246,056,423
6,658,510,363
418,056,563
2,205
2,259,472,418
9,336,041,549
12,674,388,184
16,298,974,368
2,498,804,441
2,498,804,441
1,781,332,574
1,781,332,574
128,706,901
128,706,901
145,661,582
145,661,582
477,642,721
1,405,878,937
1,883,521,658
855,358,468
1,411,352,479
2,266,710,947
2012
Amount in Taka
2011

Deposits from customers (note-10.1.b.iv)
11
2,769,227,716
9,336,041,549
11,735,023,423
12,105,269,265
16,246,056,423
16,298,974,368
4,461,883
5,222,897
Unearned commission on guarantee
Obligation under finance lease
Provision for unclassified investments
Provision for classified investment
Other liabilities

12
12.1

Back to back bills (Foreign)
Back to back bills (Local)
Back to back bills (EPZ)
Less: Margin
12.2
1,333,780,814
10,401,242,609
45,123,559
72,774,697
49,585,442
77,997,594
2,532,366,798
2,454,716,959
931,935,821
794,887,752
31,397,330
44,771,351
3,495,699,949
3,294,376,062
(642,082,871)
(327,476,334)
2,853,617,078
2,966,899,728
379,740,629
903,232,150
625,099,851
330,055,946

Less: Margin
1,004,840,480
1,233,288,096
(37,253,313)
(36,199,943)
967,587,167
1,197,088,153
Money for which the Bank is contingently liable in respect of guarantees given favoring:
Directors or officers
Government
127,865,180
1,108,705
Banks and other financial institutions
643,680,136
930,102,770
Others
Less: Margin
12.3
233,295,164
302,076,621
1,004,840,480
1,233,288,096
(37,253,313)
(36,199,943)
967,587,167
1,197,088,153
Letters of credit (Sight)
441,735,207
1,043,230,675
Letters of credit (Deferred)
774,173,437
1,012,205,240
Back to back L/C
466,179,067
520,168,209
Banks liabilities PAD

Less: Margin
1,682,087,711
2,575,604,124
(625,568,697)
(426,208,666)
1,056,519,014
2,149,395,458
2012
12.4

Outward bills for collection
Inward local bills for collection
Inward foreign bills for collection
Less: Margin
13
Investment income
i) Income from general investment
Quard against TDR
Bai-Murabaha (cc pledge)
Bai-Muajjal (cc hypo)
Retail investment loan
Izara
Bai-Salam (packing credit)
Staff loan
Hire purchase
Other investments
Sub-total (i)
ii) Profit on deposits with other Islamic banks
In Bangladesh
Out side Bangladesh
Sub-total (ii)
Grand total (i+ii)
14

a)
Profit paid on deposits:
Mudaraba term deposits
Mudaraba special scheme deposits
Others
b)
15
Interest / Profit paid for borrowings:

Bangladesh Bank/ Other Bank/ FI/Agents bank
Islamic Bond Fund

Commission on L/Cs-sight
Commission on L/Cs-deferred
Commission on L/Cs-back to back
Commission on L/Gs
Commission on remittance
Other commission
Exchange gain (note - 15.1) - including gain from FC dealings
Settlement fees / Brokerage
Amount in Taka
2011
167,892,693
167,892,693
(213,050)
167,679,643
163,403,974
163,403,974
(713,050)
162,690,924
113,143,164
690,481,270
523,385,528
130,147,008
104,558,960
11,820,191
5,830,656
351,409,160
460,702,605
129,796,772
2,521,275,314
64,950,185
472,312,148
448,797,065
226,738,692
93,294,380
10,692,730
5,367,968
238,802,553
581,157,850
97,967,658
2,240,081,228
6,644
6,644
6,547
6,547
2,521,281,958
2,240,087,775
119,574,501
162,218,851
1,059,813,449
266,068,567
13,732
51,637,837
1,659,326,937
93,942,793
56,714,098
978,435,287
220,885,638
85,319,733
1,435,297,549
328
4,283,155
4,283,483
1,663,610,420
14,431,389
14,431,389
1,449,728,938
27,673,365
3,455,822
30,761,631
9,721,337
2,218,224
67,933
73,898,312
26,515,613
100,413,925
24,221,526
6,102,915
38,659,972
18,290,576
2,238,591
56,067
89,569,647
24,533,984
114,103,631
2012
15.1
Less: Exchang loss

Retail Income
24,533,984
533,210
429,377
4,621,903
5,178,300
19,359,896
2,647,483
1,550
Postage / telex / SWIFT/ fax recoveries
4,324,463
3,276,224
Rebate from foreign Bank

Foreign correspondent charges
4,123,454
3,844,192
17,167,226
17,144,303
51,165,583
49,233,842
Basic pay
47,632,946
35,724,009
Allowances
35,655,325
27,132,733
7,426,000
5,284,450
Miscellaneous earnings (note-16.1)

16.1
Miscellaneous earnings include syndication fee, commission from

foreign remittance house / bank and sale proceeds of various items, etc.
17
Bonus
4,540,426
3,239,182
95,254,697
71,380,374
7,354,877
6,681,659

Rent, rate and taxes
Lease rent
10,617
23,866
Insurance
952,440
786,342
3,801,028
3,145,778
12,118,962
10,637,645
211,615
175,870
211,615
175,870

Legal expenses
Legal expenses
Other professional charges
Postage
1,011,532
1,121,635
2,947,781
3,831,804
Data communication
4,897,397
2,856,468
484,704
635,714
55,622
30,898
9,397,036
8,476,519
Telephone - office
21
26,515,613
17,747,844
Incidental charges
20
24,533,984
Income from ATM Service

Gain on sale of assets
19
26,515,613

Rent recovered
18
2011
Exchange gain
Exchange gain
16
Amount in Taka
Stationery, printing and advertisements, etc.

2,167,810
2,391,134
2,943,042
3,403,078
235,461
225,604
5,346,313
6,019,816
2012
22
23
Loan -written off
Interest waived
6,751,484
5,039,864
Depreciation
Leased assets
Repairs
6,751,484
5,039,864
Building
343,938
133,357
170,805
980,779
1,401,163
1,383,913
96,221
130,480
Office equipment
Banks vehicles
Maintenance
601,853
700,224
2,613,980
3,328,753
4,888,973
4,681,490
Entertainment
2,223,296
3,249,146
Car expenses
4,850,965
3,414,506
21,737
32,364
Other expenses

Medical expenses
9,365,464
8,368,617
800
600
Finance charge for lease assets
Donations
Traveling expenses
755,884
940,660
825,063
743,527
Bank charges and commission paid

Loss on sale of assets
Business development
5,140
202,750
182,200
Remittance charges
617,260
678,788
Laundry, cleaning and photographs, etc.
333,809
453,730
Exgratia
385,000
381,500
25
2011
Fixed assets
24
Amount in Taka
Provision for investments & off -balance sheet exposure
752,791
15,858,328
550,653
15,314,304
Provision for bad and doubtful investments
Provision for unclassified investments
(16,784,043)
(4,924,331,871)
150,321,477
150,321,477
5,066,065,659
5,066,065,659
** PBIL- Prime Bank Investment Limited
44,269,225
(15,668,335)
28,600,890
1,182,137,746
1,182,137,746
(3,830,066)
(31,712,304)
1,009,251,046
1,009,251,046
1,009,251,046
(147,552,415)
861,698,631
861,698,631
16,295,641,865
16,295,641,865
12,242,697,027
(4,793,563,499)
(3,215,739,848)
4,233,393,680
(2,636,100,000)
1,597,293,680
211,414,920,689
211,414,920,689
Islamic Banking
328,411,240
(154,052,683)
174,358,557
7,939,845,680
7,939,845,680
(68,589,709)
(104,502,037)
79,811,596
79,811,596
79,811,596
PBSL
12,702,744,319
(460,047,292)
12,242,697,027
Conventional Banking including

OBU
4,944,770,834
(2,636,100,000)
2,308,670,834
222,644,496,895
222,644,496,895
167,105,520
13,084,842,553
(3,215,739,848)
501,502,986
167,105,520
501,502,986
501,502,986
PBIL
167,105,520
Off Shore
Banking Units
13,084,842,553
13,084,842,553
PBL (Conventional
&
Islamic Banking)
Inside Bangladesh
* Prime Exchange Company Pte Ltd Singapore, PBL Exchange (UK) Ltd & PBL Finance (Hong Kong) Ltd
Income
Less: Inter segmental income
Total income
Operating profit (Profit before unallocated
expenses and tax)
Allocated expenses
Provision against loans and advances, Others
Profit / (loss) before tax
Income tax including deferred tax
Net profit
Segment assets
Segment liabilities
Particulars
II) Business Segment
Profit / (loss) before tax

Income tax including deferred tax
Net profit
Segment assets
Segment liabilities
Provision against loans and advances, others
Income
Less: Inter-segmental income
Total income
Operating profit (Profit before unallocated
expenses and tax)
Allocated expenses
Particulars
I) Geographical Segment
Financial Reporting by Segment of the Group
(14,795,622)
(14,795,622)
45,148,274
45,148,274
(48,733,244)
33,937,621
33,937,621
33,937,621
PBL
Exchange
(UK) Ltd.
(120,802,317)
48,116,707
(9,662,777)
38,453,930
1,336,503,295
1,336,503,295
168,919,024
168,919,024
168,919,024
* Remittance (Outside BD)
9,096,886
(859,495)
8,237,391
58,202,382
58,202,382
(43,828,614)
52,925,499
52,925,499
52,925,499
Prime Exchange
Co. Pte. Ltd.
(Singapore)
(100,302,013)
(108,332,103)
372,680,466
(169,721,018)
202,959,447
9,121,983,426
9,121,983,426
581,314,582
581,314,582
581,314,582
** Investment
(PBIL+PBSL)
53,815,443
(8,803,282)
45,012,161
1,233,152,640
1,233,152,640
(28,240,460)
82,055,903
82,055,903
82,055,903
PBL Finance
(Hong Kong)
Ltd.
Outside Bangladesh
(5,162,220,245)
(3,324,071,951)
5,515,889,483
(2,815,483,796)
2,700,405,687
238,169,049,276
238,169,049,276
14,002,181,679
14,462,228,971
(460,047,292)
14,002,181,679
Total
5,515,889,483
(2,815,483,796)
2,700,405,687
238,169,049,276
238,169,049,276
(5,162,220,245)
(3,324,071,951)
14,002,181,679
14,002,181,679
14,002,181,679
Total
Annexure-H

50,128,733,089
(1,518,594,399)
Net liquidity gap (A-B):
52,547,250
Provision and other liabilities
Total liabilities (B):
3,421,438,111
28,691,356,564
Deposits (note-12a.6)
Other accounts (note-12a.6)
17,963,391,164
48,610,138,690
Borrowings from Bangladesh Bank, other banks, financial

institutions and agents (note-11a.4)
Liabilities:
Total assets (A):
84,512,358
Other assets
Non banking assets
45,146,024
36,933,559,434
4,539,349,166
Loans and advances / investments (note-7a.2)
Investments (note-6a.1)
1,607,902,135
Balance with other banks and financial institutions (note-4a.3)
5,399,669,573
Up to 1 month
Cash in hand (note-3a.4)
Assets:
Particulars
(3,719,543,112)
40,129,883,527
309,800,125
39,820,083,402
36,410,340,415
1,644,535,061
90,292,047
34,024,057,815
615,376,253
36,079,239
1-3 months
7,972,751,295
40,960,051,687
2,535,465,100
38,424,586,587
48,932,802,982
1,747,361,929
406,314,211
44,801,021,311
1,977,955,858
149,673
3-12 months
2,921,432,681
57,726,169,084
6,683,935,214
48,323,647,577
2,718,586,293
60,647,601,764
611,388,646
2,708,199,887
42,229,227,840
15,098,785,391
1-5 years
Liquidity Statement of the Bank (Analysis of maturity of assets and liabilities)

15,130,992,441
27,101,129,287
3,729,369,468
23,371,759,819
42,232,121,728
1,113,397,101
2,901,982,163
27,438,968,524
10,777,773,940
Above 5 years
20,787,038,905
216,045,966,674
13,311,117,157
3,421,438,111
178,631,433,949
20,681,977,457
236,833,005,579
4,087,797,994
4,363,349,270
160,889,848,563
49,670,435,192
1,644,131,047
16,177,443,513
Total
Annexure-I
Investments
615,376,253
50,265,107,535
(1,575,439,036)
Net liquidity gap (A-B):
188,921,696
Total liabilities (B):
Provision and other liabilities
3,421,438,111
28,691,356,564
Deposits
Other accounts
17,963,391,164
48,689,668,499
Borrowings from Bangladesh Bank, other banks, financial

institutions and agents
Liabilities:
Total assets (A):
44,138,925
Other assets
Non banking assets
45,146,024
(4,562,589,611)
40,295,456,826
435,925,634
39,729,631,192
129,900,000
35,732,867,215
858,904,089
90,292,047
34,132,215,587
4,539,349,166
36,969,612,025
Loans and advances / investments
36,079,239
1-3 months
1,682,030,047
5,409,392,312
Up to 1 month
Cash in hand
Assets:
Particulars
-
6,872,749,277
41,549,773,367
2,787,716,119
38,424,586,587
337,470,661
48,422,522,644
912,608,276
406,314,211
45,125,494,626
1,977,955,858
149,673
3-12 months
5,639,518,155
57,995,775,085
6,953,541,215
48,323,647,577
2,718,586,293
63,635,293,240
319,314,693
2,708,199,887
45,508,993,269
15,098,785,391
1-5 years
Consolidated Liquidity Statement (Analysis of maturity of assets and liabilities)

14,587,568,391
27,101,129,287
3,729,369,468
23,371,759,819
41,688,697,678
664,000,000
1,169,852,667
3,306,011,862
25,771,059,209
10,777,773,940
Above 5 years
20,961,807,176
217,207,242,100
14,095,474,132
3,421,438,111
178,540,981,739
21,149,348,118
238,169,049,276
2,798,965,983
4,419,804,836
165,042,327,369
48,002,525,877
1,718,258,959
16,187,166,252
Total
Annexure-I (1)
High Lights of the Bank
Annexure-J
(Taka in million)
Sl no.
Particulars
Paid-up capital
2012
2011
9,357.71
7,798.10
Total capital (Consolidated)
25,915.65
24,228.81
Total capital (Solo Basis)
25,751.53
24,068.59
Capital surplus / (deficit) (Consolidated)
5,405.38
4,790.85
Capital surplus / (deficit) (Solo Basis)
5,517.56
4,742.88
Total assets
236,833.01
199,950.49
Total deposits
182,052.87
159,815.72
Total loans and advances / investments
160,889.85
138,848.43
Total contingent liabilities and commitments
108,187.32
101,055.11
10
Credit deposit ratio
88.38%
86.88%
11
Percentage of classified loans / investments against total loans and advances / investments
3.83%
1.37%
12
Profit after tax and provision
2,698.99
3,634.13
13
Amount of classified loans / investments during the year
6,168.50
1,908.25
14
Provisions kept against classified loans / investments
1,949.08
778.23
15
Provision surplus / (deficit) against classified loans / investments
47.02
110.52
16
Cost of fund
8.75%
8.15%
17
Interest earning assets
212,204.41
179,536.84
18
Non-interest earning assets
24,628.59
20,413.65
19
Return on investment (ROI)
10.43%
13.94%
20
Return on assets (ROA)
1.24%
2.05%
21
Income from investment
4,633.33
4,157.29
22
2.88
3.88
23
Net income per share (Taka)
2.88
3.88
24
Price earning ratio (times)
12.83
11.46

Particulars
Notes
2012
USD
2011
Taka
Taka
PROPERTY AND ASSETS

Cash
2,086,683
166,621,451
237,669,828
5,384
429,879
440,662
2,092,067
167,051,330
238,110,490

In Bangladesh
Outside Bangladesh
Loans and advances
Loans, cash credits, overdrafts, etc.
40,540,098
3,237,122,791
2,934,957,412
20,763,690
1,657,978,582
535,408,180
61,303,788
4,895,101,373
3,470,365,592
47,510
3,793,678
4,582,311
Other assets
1,494
119,278
137,307
63,444,859
5,066,065,659
3,713,195,700
59,649,290
4,762,989,842
3,211,821,032
1,934,588
154,476,693
211,063,517
Bills payable
Savings bank deposits
Term deposits
1,934,588
154,476,693
211,063,517
1,860,981
148,599,124
290,311,151
63,444,859
5,066,065,659
3,713,195,700
Paid up capital
Statutory reserve
Foreign currency gain
Other reserve
Deficit in profit and loss account / Retained earnings
63,444,859
5,066,065,659
3,713,195,700

Total assets
Liabilities
Current deposits
Other liabilities
Total liabilities
10

Particulars
Notes
USD
2012
2011
Taka
Taka
OFF- BALANCE SHEET EXPOSURES

11

12,606
1,006,562
26,979,289
227,296
18,149,544
18,604,817
6,645,924
530,676,369
876,183,273
10,033,474
801,171,904
153,267,389
16,919,300
1,351,004,379
1,075,034,768
Other commitments
Other commitments
1,351,004,379
1,075,034,768
16,919,300

Profit and Loss Account for the year ended 31 December 2012
Particulars
Notes
2012
USD
2011
Taka
Taka
Interest income
12
2,372,600
194,204,867
136,707,445
Interest paid on deposits, borrowings, etc.
13
(685,986)
(56,150,131)
(38,616,994)
1,686,614
138,054,736
98,090,451
Net interest
Commission, exchange, brokerage, etc.
14
279,844
22,906,115
29,568,129
15
75,069
6,144,669
6,668,604
2,041,527
167,105,520
134,327,184
16
149,214
12,213,631
9,215,024
17
12,080
988,779
766,946
244
19,975
27,047
Legal expenses
18
2,011
164,596
148,704
19
2,890
236,585
177,140
Auditors fees
20
9,440
772,677
709,091
Other expenses
21
29,172
2,387,800
3,782,774
205,051
16,784,043
14,826,724
1,836,476
150,321,477
119,500,460
Specific provision
General provision

Provision for loans and advances / investments
Other provision
Total provision (D)
1,836,476
150,321,477
119,500,460
Current tax
Deferred tax
1,836,476
150,321,477
119,500,460

Net profit / (loss) after taxation

Cash Flow Statement for the year ended 31 December 2012
Particulars
A)
2012
USD
Taka
2011
Taka

2,372,600
194,204,867
136,707,445
Interest payments
(685,986)
(56,150,131)
(38,616,994)
279,844
22,906,115
29,568,129
(149,214)
(12,213,631)
(9,215,024)
(19,398)
(1,587,747)
(1,358,680)
75,069
6,144,669
6,668,604
(27,591)
(2,258,415)
(3,591,849)
1,845,325
151,045,727
120,161,631
(18,906,200)
(1,509,658,150)
2,186,052,718
184
14,669
(979)
(643,983)
(51,421,947)
(212,046,262)
(3,522,238)
(281,250,365)
(5,310,901)
(23,072,237)
(1,842,315,793)
1,968,694,576
(21,226,912)
(1,691,270,066)
2,088,856,207
(376)
(30,025)
(1,682,366)
(376)
(30,025)
(1,682,366)
Borrowing from Prime Bank Limited, Other Bank and

Bangladesh Bank
20,410,350
1,629,764,406
(1,916,881,711)
Net cash use in financing activities
20,410,350
1,629,764,406
1,916,881,711)

Cash generated from operating activities before changes

in operating assets and liabilities
Other assets
Other liabilities
B)

Purchase / sale of property, plant and equipment
C)
D)
(816,938)
(61,535,685)
170,292,130
E)
(9,523,475)
(243,265,280)
F)
2,909,005
238,110,490
311,083,640
G)
2,092,067
167,051,330
238,110,490
2,092,067
167,051,330
238,110,490
2,092,067
167,051,330
238,110,490

1.1
Status of the units

Off-shore Banking Units of Prime Bank Limited, governed under the rules and guidelines of Bangladesh
Bank. The Bank obtained the Off-shore Banking Unit permission vide letter no. BRPD (P) 744 (84)/2001868 dated 19 March 2001. The Bank commenced the operation of its Off-shore Banking Unit from March
15, 2007. Presently the Bank has 3 (Three) units in Dhaka, Adamjee EPZ and Chittagong.
1.1.1
The principal activities of the units are to provide all kinds of commercial banking services to its customers
through its Off-shore Banking Units in Bangladesh.
1.2
1.2.1
Basis of accounting
The Off-shore Banking Units maintain its accounting records in USD from which accounts are prepared
according to the Bank Companies Act 1991, Bangladesh Accounting Standards and other applicable
directives issued by Bangladesh Bank.
1.2.2
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 recognised in the period in which the estimate is revised and in any future periods affected.
1.2.3
Foreign currency transaction

a) Foreign currencies translation
Foreign currency transactions are converted into equivalent Taka using the ruling exchange rates on the
dates of respective transactions as per BAS-21 The Effects of Changes in Foreign Exchange Rates.
Foreign currency balances held in US Dollar are converted into Taka at weighted average rate of inter-bank
market as determined by Bangladesh Bank on the closing date of every month. Balances held in foreign
currencies other than US Dollar are converted into equivalent US Dollar at buying rates of New York closing
of the previous day and converted into Taka equivalent.
b) Commitments
Commitments for outstanding forward foreign exchange contracts disclosed in these financial statements
are translated at contracted rates. Contingent liabilities / commitments for letter of credit and letter of
guarantee denominated in foreign currencies are expressed in Taka terms at the rates of exchange ruling
on the balance date.
c) Translation gains and losses

The resulting exchange transaction gains and losses are included in the profit and loss account, except
those arising on the translation of net investment in foreign subsidiary.
1.2.4
Cash flow statement

Cash flow statement has been prepared in accordance with the Bangladesh Accounting Standard-7 Cash
Flow Statement under direct method as recommended in the BRPD Circular No. 14, dated June 25, 2003
issued by the Banking Regulation & Policy Department of Bangladesh Bank.
1.2.5
Reporting period
These financial statements cover from January 01 to December 31, 2012.
1.3
Assets and basis of their valuation
1.3.1

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 unit management for its short-term commitments.
1.3.2
Loans and advances / investments

a)
Loans and advances of Off-shore Banking Units are stated in the balance sheet on gross basis.
b)
Interest is calculated on a daily product basis but charged and accounted for on accrual basis. Interest is not
charged on bad and loss loans as per guidelines of Bangladesh Bank. Records of such interest amounts
are kept in separate memorandum accounts.
1.3.3
Fixed assets and depreciation

a)
All fixed assets are stated at cost less accumulated depreciation as per BAS-16 " Property, Plant and
Equipment". The cost of acquisition of an asset comprises its purchase price and any directly attributable
cost of bringing the assets to its working condition for its intended use inclusive of inward freight, duties and
non-refundable taxes.
b)
Depreciation is charged for the year at the following rates on reducing balance method on all fixed assets.
c)
Category of fixed assets
Rate
10%
Office equipment
20%
For additions during the year, depreciation is charged for the remaining days of the year and for disposal
depreciation is charged up to the date of disposal.
1.4
Basis for valuation of liabilities and provisions
1.4.1
Benefits to the employees

The retirement benefits accrued for the employees of the units as on reporting date have been accounted
for in accordance with the provisions of Bangladesh Accounting Standard-19, Employee Benefit. Bases of
enumerating the retirement benefit schemes operated by the Bank are outlined below:
a)
Provident fund
Provident fund benefits are given to the permanent staffs of the OBU under the Provident Fund Rules of
the Bank. The Commissioner of Income Tax, Taxes Zone - 5, Dhaka has approved the Provident Fund
as a recognized provident fund within the meaning of section 2(52) read with the provisions of part - B
of the First Schedule of Income Tax Ordinance 1984. The recognition took effect from 07 July 1997. The
Fund is operated by a Board of Trustees consisting six members (03 members from management and
other 03 members from the Board of Directors) of the Bank. All confirmed employees of the Units are
contributing 10% of their basic salary as subscription to the Fund. The units also contribute equal amount
of the employees contribution. Interest earned from the investments is credited to the members account
on yearly basis.
b)
Gratuity fund
Prime Bank operates an unfunded gratuity scheme, provision in respect of which is made annually covering
all its permanent eligible employees. Actuarial valuation of gratuity scheme had been made to assess the
adequacy of the liabilities provided for the scheme as per BAS-19 Employee Benefits . Gratuity fund for
Off-shore Banking Units are maintained with Head Office, Prime Bank Limited.
c)
Welfare fund
Prime Banks employees welfare fund is subscribed by monthly contribution of the employees. The Bank
also contributes to the Fund from time to time. The Fund has been established to provide coverage in the
event of accidental death or permanent disabilities of the employees. Disbursement from the fund is done
as per rules for employees welfare fund. Welfare fund for Off-shore Banking Units are maintained with
Head Office, Prime Bank Limited.
d)
Incentive bonus
Prime Bank started a incentive bonus scheme for its employees. 10% of net profit after tax is given by the
Board of directors in every year for its employees. These bonus amount distributed among the employees
as per performance. The bonus amount are paid annually, normally first quarter of every following year and
the cost are accounted for the period to which it relates. Provision for incentive bonus for Off-shore Banking
Units is kept with Head Office, Prime Bank Limited.
1.4.2

A provision is recognised in the balance sheet when the unit has a legal or constructive obligation as a result
of a past event and it is probable that an outflow of economic benefit will be required to settle the obligations,
in accordance with the BAS 37 Provisions, Contingent Liabilities and Contingent Assets.
1.5
Revenue recognition
1.5.1
Interest income
In terms of the provisions of the BAS-18 Revenue, the interest income is recognized on accrual basis.
1.5.2

Fees and commission income arises on services provided by the units are recognized on a cash receipt
basis. Commission charged to customers on letters of credit and letters of guarantee are credited to income
at the time of effecting the transactions.
1.5.3
Interest paid and other expenses

In terms of the provisions of the BAS - 1 Presentation of Financial Statements interest and other expenses
are recognized on accrual basis.
General
a)
These financial statements are presented in Taka, which is the Banks functional currency. Figures appearing
in these financial statements have been rounded off to the nearest Taka.
b)
Assets and liabilities & income and expenses have been converted into Taka currency @ US$1 = Taka
79.8499 (closing rate as at 31st December 2012) and Tk.81.8532 (average rate which represents the
year end).
USD
3
2012
2011
Taka
Taka

In Bangladesh (note-3.1)
Outside Bangladesh (note-3.2)
2,086,683
5,384
2,092,067
166,621,451
429,879
167,051,330
237,669,828
440,662
238,110,490
3.1
In Bangladesh
2,086,683
166,621,451
237,669,828
3.2
Outside Bangladesh (Nostro accounts)

5,384
429,879
440,662
14,608,301
12,387,244
635,301
12,909,252
40,540,098
1,166,471,360
989,120,208
50,728,723
1,030,802,500
3,237,122,791
487,692,056
1,227,785,543
122,598,061
1,096,881,752
2,934,957,412
12,816,999
1,023,436,123
7,946,691
20,763,690
61,303,788
634,542,459
1,657,978,582
4,895,101,373
535,408,180
535,408,180
3,470,365,592
12,816,999
7,946,691
20,763,690
1,023,436,123
634,542,459
1,657,978,582
535,408,180
535,408,180
26,657
9,366
11,487
47,510
2,128,598
747,842
917,238
3,793,678
2,438,607
921,382
1,222,322
4,582,311
1,339
155
1,494
106,921
12,357
119,278
109,603
27,704
137,307
51,649,290
8,000,000
59,649,290
4,124,190,642
638,799,200
4,762,989,842
245,558,700
2,966,262,332
3,211,821,032
Current account
4
Loans and advances

i) Loans, cash credits, overdrafts, etc.
Loan (General)
Hire purchase
Lease finance
Over Draft
T.R Loan
ii) Bills purchased and discounted (note-5)


Cost
Vehicle
Other assets
Stationery A/c & Stamp in hand
Due from Head Office

Bangladesh Bank
Prime Bank Limited
Other Bank & Financial Institutes
USD
9
11
11.1
Acceptance & endorsement

Back to Back bills
Less: Margin
Less: Margin
11.3
Irrevocable Letters of credits

Letters of credits
Back to Back letter of credit
Less: Margin
11.4
1,934,588
1,934,588
154,476,693
154,476,693
211,063,517
211,063,517
1,503,392
181,317
249,880
1,934,588
120,045,666
14,478,118
19,952,909
154,476,693
110,154,729
14,785,744
86,123,044
211,063,517
24,504
1,836,476
1,860,981
1,956,661
146,642,463
148,599,124
47,702
51,065
606,849
289,605,535
290,311,151
12,606
12,606
12,606
1,006,562
1,006,562
1,006,562
26,979,289
26,979,289
26,979,289
227,296
227,296
227,296
18,149,544
18,149,544
18,149,544
18,604,817
18,604,817
18,604,817
6,645,924
6,645,924
6,645,924
530,676,369
530,676,369
530,676,369
876,183,273
876,183,273
876,183,273
10,033,474
10,033,474
10,033,474
801,171,904
801,171,904
801,171,904
153,267,389
153,267,389
153,267,389
Other liabilities
Interest on bills discount
Interest on borrowing
Provision for Expenses
Suspense A/c
Due to Head Office
11.2
2011
Taka
Customer deposits and other accounts

Current deposits
Security deposits receipts
Sundry deposits
10
Taka

Bank deposits
Customer deposits and other accounts (note-9.1)
9.1
2012

Outward local bills for collection
Outward foreign bills for collection
Inward local bills for collection
Inward foreign bills for collection
Less: Margin
USD
12
Loan (general)
SOD
LTR loan
Lease finance
Hire purchase
Payment against documents
Documentary bills purchased
Others
Interest on loans and advances
337,484
43,661
666,811
987,244
305,819
2,341,019
27,624,171
3,573,801
54,580,573
80,809,094
25,032,251
191,619,890
30,307,117
1,017,022
39,498,996
46,202,758
734,116
18,433,181
136,193,190
Interest on balance with other banks and financial institutions

Interest received from FC account
31,581
31,581
2,372,600
2,584,977
2,584,977
194,204,867
514,255
514,255
136,707,445
679
668,724
16,583
685,986
55,551
54,737,193
1,357,387
56,150,131
48,680
23,969,847
14,598,467
38,616,994
85,324
2,025
71,223
49,784
1,078
70,409
279,844
279,844
6,984,070
165,779
5,829,795
4,075,017
88,217
5,763,237
22,906,115
22,906,115
11,162,368
9,306,445
5,333,504
450,559
3,315,253
29,568,129
29,568,129
7,509
11,242
56,319
75,069
614,636
920,173
4,609,860
6,144,669
1,169,241
989,317
4,510,046
6,668,604
68,687
63,418
10,656
6,453
149,214
5,622,211
5,190,934
872,251
528,235
12,213,631
4,325,003
3,880,152
613,231
396,638
9,215,024
Interest on deposits, borrowings, etc.

a)
b)
c)
14
Interest paid on deposits

Interest paid on local bank accounts
Interest paid on Bangladesh Bank

Commission on L/Cs
Commission on L/Gs
Commission on export bills
Commission on bills purchased
Commission on accepted bills
Commission on OBC, IBC, etc.
Commission on PO, DD, TT, TC, etc.
Commission for services rendered to issue of shares
Other commission
Exchange gain including gain from FC dealings
Brokerage
15

Postage charge recovery
Service & other charge
SWIFT charge recovery
Miscellaneous earnings
16
2011
Taka
Taka
Interest income
Total Interest income

13
2012

Basic pay
Allowances
Bonus
Units contribution to provident fund
Retirement benefits and gratuity
USD
17

Postage
Telephone - office
19

Depreciation
Fixed assets
Leased assets
Repairs
Office equipment
Vehicle
Maintenance
21
2011
Taka
9,059
682
2,339
12,080
741,506
55,856
191,417
988,779
558,905
53,419
154,622
766,946
1,084
665
254
8
2,011
88,754
54,396
20,783
663
164,596
47,681
49,403
47,549
4,071
148,704
1,601
1,154
135
2,890
131,044
94,476
11,065
236,585
97,692
75,389
4,059
177,140
8,848
8,848
724,250
724,250
640,563
640,563
392
53
147
592
9,440
32,104
4,321
12,002
48,427
772,677
20,156
33,943
3,263
11,165
68,528
709,091
10,449
1,530
9,031
4,485
115
1,284
680
427
43
1,128
29,172
855,283
125,254
739,180
367,085
9,426
105,118
55,659
34,928
3,541
92,326
2,387,800
829,481
73,844
3,434
274,674
11,065
126,720
46,644
3,542
2,413,370
3,782,774
Stationery, printing and advertisements, etc.

20
Taka

Insurance
18
2012
Other expenses
Entertainment
Bank charge & Commission
Car expenses
Travel expenses
Training & internship
Other Pofessional Charges
Exgratia
Auditors Report
to the shareholders of Prime Bank Investment Limited
We have audited the accompanying financial statements of Prime Bank Investment Limited (PBIL) which comprise the
financial position as at 31 December 2012 and the statement of comprehensive income, statement of changes in equity and
statement of cash flows for the year then ended and a summary of significant accounting policies and other explanatory
information disclosed in Notes 1-39 to the financial statements.
Managements Responsibility for the Financial Statements
Management of PBIL is responsible for the preparation and fair representation of these financial statements in accordance
with Bangladesh Financial Reporting Standards (BFRSs), and for such internal control as management determines is
or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements 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 financial statements are free from material
misstatement.
An audit involves performing procedures to obtain evidence about the amount and disclosures in the financial statements.
The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement
of the financial statements, whether due to fraud or error. In making those risks assessments, the auditor considers internal
control relevant to the entitys preparation and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys
internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements which have been prepared in accordance with Bangladesh Accounting Standards
give a true and fair view of the state of affairs of the Company as at 31 December 2012 and of their cash flows for the period
from 01 January 2012 to 31 December 2012 and comply with applicable laws and regulations.
Emphasis of matter
Without qualifying our opinion above, we draw attention to the following matters:
1.
The company paid interim dividend, as mentioned in note# 23 to the financial statements, before issuance of
press release# SEC/Mukhopatro/2011/696 dated 19 February 2013 of Bangladesh Securities and Exchange
Commission, as referred in note# 20.02.
2.
In note# 38 to the financial statements, the company disclosed contingent liability regarding waiver of interest on
loan provided to affected investors.
Report on Other Legal and Regulatory Requirements

(a)
(b)
(c)
(d)
we have obtained all the material information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit and made due verification thereof;
in our opinion, proper books of account as required by law have been kept by the Company so far as it appeared
from our examination of those books;
the Companys financial position and financial performance dealt with by the report are in agreement with the books
of account; and
the expenditure incurred was for the purposes of the Companys business.
Dated, Dhaka
27 February 2013
ACNABIN
Statement of Financial Position

Notes
Amount in Taka
2012
2011
22,809,876
37,500,000
3,660,401
27,599,950
37,500,000
4,183,316
63,970,277
69,283,266
6,356,759,509
1,399,569,819
108,044
29,019,573
90,418,458
5,909,408,197
1,441,557,511
48,603
735,332
112,340,005
3,254,574
7,875,875,403
7,939,845,680
7,467,344,223
7,536,627,489
3,000,000,000
86,488,306
3,000,000,000
152,129,749
3,086,488,306
3,152,129,749
1,203,477
2,151,261
15
1,203,477
2,151,261
16
17
18
19
20
21
22
23
24
3,933,012,530
46,521
44,100
8,037,006
504,502,037
155,023,509
10,248,937
240,000,006
1,239,251
3,578,091,569
90,159,688
44,100
7,092,400
400,000,000
253,038,532
42,110,378
6
11,809,806
4,852,153,897
7,939,845,680
4,382,346,480
7,536,627,489
ASSETS
Non-Current Assets
5
6
7

Investment in Prime Bank Securities Ltd
Preliminary and pre-operational expenses
Total non-current assets (A)
Current Assets
8
9
10
11
12
13
Advances, deposits and prepayments

Investment in shares
Dividend Receivable
Prepaid Expenses
Advance corporate income tax
Cash and bank balances
Total current assets (B)
Total Assets (A+B)
EQUITY AND LIABILITIES
Capital and Reserve
14
Share capital
Retained earnings
Total Equity (C)
Non-current liabilities
Deferred tax liabilities
Total non-current liabilities (D)
Current Liabilities
Loan Facilities
Liability for withholding taxes
Security Deposit Receipt
Payable for expenses
Provision for investment and clients margin loan
Corporate income tax payable
Accounts payable
Dividend payable
Other payables
Total current liabilities (E)
Total Equity and Liabilities (C+D+E)
These financial statements should be read in conjunction with annexed notes 1 to 39.
Dated, Dhaka
27 February 2013
Director
Vice-Chairperson
ACNABIN
Statement of Comprehensive Income

Notes
2012
Amount in Taka
2011
INCOME (A)
Interest income
Transaction/settlement fee
Management fee
Gain on sale of shares
Dividend on shares
Underwriting Commission
Bank Interest on STD accounts
Documentation fees
Other Income
861,132,742
59,535,567
43,021,047
5,191,395
43,634,197
177,600
2,630,735
7,500
125,905
1,015,456,688
815,326,644
149,381,569
141,603,034
3,614,091
61,273,656
1,139,600
166,295
54,000
1,005,323
1,173,564,211
Profit before provision and tax (C=A-B)
513,953,702
8,737,127
34,528,694
11,274,109
339,295
1,520,411
1,472,157
46,200
115,000
6,351,755
1,141,992
3,062,969
582,543,411
432,913,277
392,108,259
16,052,537
674,666
31,718,629
10,451,172
415,014
1,886,219
2,383,560
103,000
62,700
6,603,129
4,191,404
3,517,313
470,167,601
703,396,610
Less: Provision for investment and clients margin loan

Profit before tax
Less: Tax expenses
Profit after tax
104,502,037
328,411,240
154,052,683
174,358,557
388,952,446
314,444,164
255,939,030
58,505,134
0.58
0.20
25
26
27
EXPENDITURE (B)
Interest expenses
Settlement and other fees
Transaction cost
Salary and allowances
Rent, Taxes, Insurance and Electricity
Legal & Professional expenses
Postage, Stamp and Telecommunication
Stationery, Printing and Advertisement
Directors Remuneration
Auditors fee
Depreciation, Amortisation and Repair of assets
Entertainment, Travelling & Conveyance
Other expenses
28
29
30
31
32
33
34
35
36
Earnings per share
Dated, Dhaka
27 February 2013
37
Director
Vice-Chairperson
ACNABIN

Particulars
Paid up capital
Taka
Retained earnings
Taka
Total
Taka
3,000,000,000
152,129,749
3,152,129,749
3,000,000,000
152,129,749
3,152,129,749
Retained Profit for the year
174,358,557
174,358,557
Interim dividend payable during the year
(240,000,000)
(240,000,000)
3,000,000,000
86,488,306
3,086,488,306

Reversal of understated expense of prior years
Restated balance as at 01 January 2012
Director
Vice-Chairperson
Dated, Dhaka
27 February 2013

2012
A.
696,049,250
(100,000,000)
(291,588,074)
304,461,176
(474,932)
54,926,179
(7,747,640)
(6,348,091,622)
5,897,653,045
(403,734,970)
(667,510)
59,848,541
(450,452,139)
(5,897,653,045)
5,041,355,927
(1,247,568,226)
354,920,960
354,920,960
1,295,084,571
(359,999,994)
935,084,577
87,163,884
3,254,574
90,418,458
(8,022,473)
11,277,047
3,254,574
Cash Flows from Financing Activities:

Loan from Prime Bank Ltd. & Bank Asia
Dividend paid
D.
379,037,404
(150,675,485)
(89,999,999)
(2,383,026)
(1,000)
135,977,894
Cash Flows from Investing Activities:

Sale of shares during the year
Purchase of shares during the year
Margin Loan provided
Recovery of Loan
Net cash from investing activities
C.
2011
Cash Flows from Operating Activities:

Cash generated from operations
Advance Income Tax
Income tax on Dividend
Payment for withholding taxes
Advance deposit
Income tax paid
B.
Amount in Taka
Net Cash Outflow for the Period (A+B+C)

Opening cash and bank balances
Closing cash and bank balances
Dated, Dhaka
27 February 2013
Director
Vice-Chairperson

1.
Reporting Entity
1.1
Prime Bank Investment Ltd is a subsidiary company of Prime Bank Ltd, incorporated as a public limited
company on 28 April 2010 with the Registrar of Joint Stock Companies, Dhaka vide certificate of
incorporation no. C-84266/10 dated 28 April 2010 which has commenced its business on the same date.
The functions of investment banking were separated from Prime Bank Ltd by forming a subsidiary company
in terms of Bangladesh Banks BRPD circular no. 12 dated 14 October 2009. Bangladesh Securities and
Exchange Commission (SEC) thereafter issued a full fledged merchant banking licence in favour of Prime
Bank Investment Ltd, vide letter no. SEC/Reg/MB/SUB/2010/03/208 dated 02 June 2010 with effect from 01
June 2010.
1.2
The main objectives 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, corporate advisory
services, etc.
2.
Basis of Preparation
2.1
Statement of compliance
The financial statements have been prepared in accordance with Bangladesh Financial Reporting Standards
(BFRS), the Companies Act 1994, Securities and Exchange Rules 1987 and other applicable laws in
Bangladesh.
2.2
Basis of presentation of financial statements

The financial statements are prepared on a going concern basis under historical cost convention in
accordance with generally accepted accounting principles. Wherever appropriate, such principles are
explained in succeeding notes:
(i)
(ii)
(iii)
(iv)
(v)
2.3
Statement of Financial Position (Balance Sheet)

Statement of Comprehensive Income (Income and Expenditure Statement)
Reporting period
The financial period of the Company under audit covers twelve (12) months from 01 January 2012 to 31 December 2012.
3.
Significant Accounting Policies

The accounting policies set out below have been applied consistently to all periods.
3.1

3.1.1 Recognition and measurement
Items of property, plant and equipment (PPE) are initially measured at cost. After initial recognition,
an item of PPE is carried at cost less accumulated depreciation and impairment losses.
3.1.2 Depreciation
Depreciation is recognised in the statement of comprehensive income on monthly basis at straightline method over the estimated useful lives of each item of property, plant and equipment.
Items of property, plant and equipment are depreciated when the these come into use or are
capitalised. In case of disposal, no depreciation is charged in the year of disposal.
Rate of depreciation on various items of property, plant and equipment considering the useful lives
of assets are as follows:
Asset category
Rate of depreciation (%)
10
Office and electrical equipment
20
Books
20
Vehicles
20

3.2
Preliminary and pre-operating expenses

3.2.1
Recognition and measurement

These are recognised as an asset if it is probable that future economic benefits that are attributable to
the asset will flow to the enterprise and cost of the asset can be measured reliably.
3.2.2 Amortisation of preliminary and pre-operating expenses

These are amortised over 10 years from the year of their first utilisation at the rate of Taka 522,915 per
year starting from the year ended 31 December 2010.
3.3
Advance, deposits and prepayments

Advances are initially measured at cost. After initial recognition, advances are carried at cost less deductions,
adjustments or charges to other account heads such as property, plant and equipment, inventory, etc.
Deposits are measured at payment value.
Prepayments are initially measured at cost. After initial recognition, prepayments are carried at cost less
charges to Statement of Comprehensive Income.
3.4

Cash and cash equivalents comprise cash in hand and bank balances, which were held and available for use
of the Company without any restriction.
3.5
Statement of cash flows

Statement of cash flows that has been prepare in accordance with the Bangladesh Accounting Standard-7
Statement of Cash Flows under direct method.
3.6
Investments
During the previous year all investments in securities were recognised at cost, being fair value of the
consideration given, including acquisition charges associated with the investments. But from this year
transaction costs have been treated as expenses in accordance with BAS-39, without considering the same.
Due to impractibility of calculation prevoius years figure has not been restated. The valuation methods of
investments used are:
3.6.1 Investment in listed securities
These are acquired and held primarily for the purpose of selling them in future or held for dividend
income and are reported at cost. Unrealised gains are not recognised in the statement of comprehensive
income. Provision for diminution in value of investment is provided in the financial statements on those
securities whose market price is below the cost of investment by netting off with those whose value
increase than cost.
3.6.2 Investment in Prime Bank Securities Ltd
Investment in associated company is accounted for under the cost method of accounting in the
Companys financial statements. Accordingly, investment in associated company is stated in the
Companys Statement of Financial Position at cost, less impairment losses, if any.
3.7
Intangible assets
(a)
An intangible asset is recognised if it is probable that the future economic benefits that are attributable
to the asset will flow to the entity and the cost of the assets can be measured reliably.
(b)
Software represents the value of computer application software licensed for use of the Company other
than those applied for the operating system of computers. Intangible assets are carried at their cost,
less accumulated amortisation and impairment loss, if any.
Initial cost comprises license fees paid at the time of its acquisition and other directly attributable
expenditures that are incurred in customising the software for its intended use.
(c)
Expenditure incurred for software is capitalised only when it enhances and extends the economic
benefits of software beyond its original specification and life and such cost is recognised as capital
improvement and added to the original cost of software.

(d)
3.8
Software is amortised using the straight-line method over the estimated useful life of 10 (ten) years commencing
from the date of the acquisition available for use over the best estimates of its useful economic life.
Receivables
Receivables are recognised when there is a contractual right to receive cash or another financial asset from another entity.
3.9
Share capital
Ordinary shares are classified as equity when there is no contractual obligation to transfer cash or other financial assets.
3.10
Borrowing funds
Borrowing funds include borrowings from Prime Bank Limited, which is stated in the statement of financial
position at amounts payable.
3.11 Provision for current taxation

Provision for current income tax has been made @ 37.5% on business income as per Income Tax Ordinance1984, and the last years assessment has also been made at the same rate. Rates of tax on other categories
of income applicable for the company are stated in note 21.
3.12 Provision for Deferred Taxation
Deferred tax liabilities are 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 asset, liabilities, income and
expenditure and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates
and tax laws that have been enacted or substantially enacted at the date of statement of financial position.
The impact on the account of changes in the deferred tax assets and liabilities has also been recognised in
the statement of comprehensive income as per BAS-12 Income Taxes.
3.13
Benefits to the Employees

The retirement benefits accrued for the employees of the Company as on reporting date have been accounted
for in accordance with the provisions of Bangladesh Accounting Standard-19, Employee Benefits. Bases of
enumerating the retirement benefit schemes operated by the Company are outlined below:
(a)
Provident Fund
Provident fund benefits are given to the permanent employees of the Company in accordance with the
Companys service rules. All confirmed employees of the Company are contributing 10% of their basic
salary as contribution to the Fund. The Company also contributes equal amount of the employees
contribution. Interest earned from the investments is credited to the members account on yearly basis.
The fund is administered by Prime Bank Ltd.
(b)
Gratuity Fund
The Company operates an unfunded gratuity scheme, provision in respect of which is made annually
covering all its permanent eligible employees. Actuarial valuation of gratuity scheme had been made
to assess the adequacy of the liabilities provided for the scheme as per BAS-19 Employee Benefits.
The fund is administered by Prime Bank Ltd.
(c)
Welfare Fund
Prime Bank Investment Employees Welfare Fund is subscribed by monthly contribution of the
employees. The Company also contributes to the fund from time to time. The fund has been established
to provide financial assistance in the event of death or permanent disabilities of the employees.
Disbursement of loan from the fund is regulated as per rules of said fund. The fund is administered by
Prime Bank Ltd.
(d)
Incentive Bonus
Prime Bank Investment Limited started an incentive bonus scheme for its employees. Maximum 10%
of net profit after tax is given to the employees in every year as incentive bonus. This bonus amount
is being distributed among the employees based on their performance and is paid annually, normally
first quarter of every following year and the costs are accounted for in the period in which it relates.

3.14
Provision for Liabilities

A provision is recognised in the statement of financial position when the Company has a legal or constructive
obligation as a result of a past event and it is probable that an outflow of economic benefit will be required to settle
the obligations, in accordance with the BAS-37 Provisions, Contingent Liabilities and Contingent Assets.
4.
Revenue Recognition
4.1
Interest income
In terms of the provisions of BAS-18 Revenue, interest income is recognised on an accrual basis.
4.2
Investment income
Interest income on investments is recognised on an accrual basis. Capital gains on investments in shares are
also included in investment income. Capital gains are recognised when these are realised.
4.3

Fees and commission income arising on services provided by the Company are recognised on an accrual basis.
4.4

Dividend on shares is recognised during the period in which it is declared and ascertained i.e., established as
the right of shareholders.
4.5
Earnings per share

Basic earnings per share
Basic earnings per share have been calculated in accordance with BAS-33 Earnings per Share which have
been shown on the face of statement of comprehensive income. This has been calculated by dividing the
basic earnings by the number of ordinary shares outstanding during the year.
4.6

Where necessary, all the material events after the reporting period date have been considered and appropriate
adjustment/disclosures have been made in the financial statements.
4.7
Directors responsibility on financial statements

The board of directors of the company is responsible for the preparation and presentation of these financial
statements.
4.8
Related party transaction

Related party transaction is a transfer of resources, services or obligation between related parties and here
the related party transaction is the three (03) STD A/C and two (02) Current A/C maintained with Prime Bank
Limited- Motijheel Branch and the loan taken from Prime Bank Limited within the financial period.

4.9
Compliance report on Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting
Standards (BFRS)
While preparing the financial statements, Prime Bank Investment Limited applied most of BAS and BFRS as
adopted by Institute of Chartered Accountants of Bangladesh. Details are given below:
Name of BAS
No.
Status
Presentation of Financial Statements
Applied
Inventories
N/A
Applied
Accounting Policies, Changes in Accounting Estimates and Errors
Applied
Events after the Reporting Period
10
Applied
Construction Contracts
11
N/A
Income Taxes
12
Applied
Segment Reporting
14
N/A
16
Applied
Borrowing Costs
23
Name of BAS
Related Party Disclosures
24
Applied
Accounting for Investments
25
Applied
Accounting and Reporting by Retirement Benefit Plans
26
N/A
Consolidated and Separate Financial Statements
27
N/A
Investment in Associates
28
N/A
Interests in Joint Ventures
31
N/A
Financial Statements: Disclosure and Presentation
32
Applied
Earnings per Share
33
Applied
Interim Financial Reporting
34
Applied
36
Applied
Provisions, Contingent Liabilities and Contingent Assets
37
Applied
Intangible Assets
38
Applied
Financial Instruments: Recognition and Measurement
39
Applied
Investment Property
40
N/A
Agriculture
41
N/A
No.
Status
First time adoption
N/A
Share-based Payment
N/A
Business Combinations
N/A
Insurance Contracts
N/A
Non-current Assets Held for Sale and Discontinued Operations
N/A
Exploration for and Evaluation of Mineral Resources
N/A
Financial Instrument Disclosure
Applied
Name of the BFRS

2012
5.
Amount in Taka
2011

Cost
Opening balance
35,774,588
35,107,078
474,932
667,510
36,249,520
35,774,588
Opening balance
8,174,638
2,990,158
Add: Charge for the period
5,265,006
5,184,480
Closing balance (B)
13,439,644
8,174,638
Written down value (A-B)
22,809,876
27,599,950
37,500,000
37,500,000
Add: Additions during the period

Less : Disposals
Closing balance (A)
Accumulated Depreciation:
Category-wise details of PPE are shown in Annex-A.

6.
Investment in Prime Bank Securities Ltd.
An amount of Taka 37,500,000 was invested by the company in 3,750,000 ordinary shares of Taka 10 each of Prime
Bank Securities Ltd (PBSL), a subsidiary company of Prime Bank Ltd. PBSL holds two membership of Dhaka Stock
Exchange Ltd, membership no. 219 and Chittagong Stock Exchange Ltd, membership no. 141.
7.
Preliminary and Pre-Operational Expenses

Opening Balance
4,183,316
4,706,231
522,915
522,915
3,660,401
4,183,316
6,348,091,622
5,897,653,045
7,924,509
10,630,215
30,200
29,200
713,178
1,095,736
6,356,759,509
5,909,408,197
Gross client margin loam
6,454,638,483
5,897,653,045
Less: Suspense account
106,546,861
6,348,091,622
5,897,653,045
Less : Amortised during the period

Closing Balance
8.
Advances, Deposits and Prepayments

Clients margin loan, net (8.01)
Advance office rent
Advance deposit
Utility receivable from brokers
8.01
Client margin loan, net

Cost Price
9.
2012
Market Price
Prime Bank 1st ICB AMCL MF
401,559,397
237,408,500
407,602,673
305,585,950
BATBC
335,856,081
395,698,325
335,856,081
295,206,505
121,400
107,140
121,400
119,700
488
1,560
2,144,940
8,049,960
Fareast Islami Life Ins.
22,225,320
10,370,430
22,225,320
12,655,440
First Janata MF
34,643,394
23,520,000
34,643,394
29,904,000
Green Delta MF
12,900,556
8,821,650
12,900,556
8,693,800
IFIL Islamic MF-1
39,213,709
25,547,100
39,213,709
25,959,150
164,040
276,079
M.I. Cement Factory
1,128,731
1,245,108
3,608,809
4,823,872
MJL Bangladesh Ltd.
4,621,826
4,236,135
4,621,900
4,617,278
RAK Ceramics Ltd
5,128,050
3,782,937
7,573,723
6,172,354
Powergrid Co. Ltd.
71,808,148
51,894,260
71,808,148
53,455,500
Pragati Insurance Ltd.
44,416,484
22,890,067
44,416,484
26,278,224
111,097,971
82,243,718
120,368,643
87,846,200
PHP First MF
37,094,860
26,230,500
53,361,996
38,280,600
Popular Life 1st MF
11,832,515
9,064,800
15,127,088
11,102,100
Popular Life Insurance Co. Ltd.
23,263,881
11,826,196
23,263,881
13,181,181
DESCO Ltd.
98,043,053
55,345,726
98,043,360
75,761,307
273
1,473
273
1,842
140,066,058
99,227,952
144,655,133
101,354,330
4,383,584
4,589,065
1,399,569,819
1,074,328,721
1,441,557,511
1,109,049,292
Export Import Bank
Keya Cosmetics Limited
Titas Gas Co. Ltd.
S. Alam Cold Rolled Steels Ltd.

Confidence Cement Ltd.
GBB Power Limited
2012
Amount in Taka
2011
Dividend Receivable
Dividend of M.I. Cement Factory
11.
Market Price
Investment in share
Bata Shoe Company (Bd) Ltd.
10.
2011
Cost Price
48,603
48,603
735,332
56,244
52,732
CDS Account maintenance fee
51,800
682,600
Less: CDS Account maintenance fee
(682,600)
(52,732)
108,044
735,332
Prepaid Expenses
Opening balance
Add: Insurance Expenses
Insurance Expenses

2012
12.
Less:
Adjusted TDS for the year 2011

Payment of Advance tax for the year 2011
Closing balance
112,340,005
4,989,166
3,423,550
9,701
105,200
254,550
4,430,690
23,619
9
325,636
100,044
1,100
19,530
13,866
18,959
45
263,074
30,000
160,675,485
169,695,057
(12,340,005)
(240,675,485)
29,019,573
6,229,860
4,133,760
19,835
3
385,570
79,080
604,800
12,057
779,700
16,629
6,500
100,000,000
11,250
60,960
112,340,005
(4,989,166)
112,340,005
7,346
41,057
845,065
249,376
28,913,004
49,694,706
10,706,364
2,595
2
90,418,458
2,062,068
41,406
597,613
205,277
303,499
3,653
2
3,254,574
3,000,000,000
3,000,000,000
Cash and Bank Balances

Cash in hand
Bank balances with Prime Bank Ltd, in
Prime Bank Invst Ltd Client Withdrw (A/C # 54501)
Prime Bank Invst Ltd Broker Payment (A/C # 54500)
Prime Bank Invst Ltd Client Deposit (A/C # 54503)
Prime Bank Invst Ltd Broker Deposit (A/C # 54502)
Prime Bank Invst Ltd Own (A/C # 54544)
PBL Client deposit (A/C # 01946)
PBL Broker deposit (A/C # 01947)
14.
2011
Advance Corporate Income Taxes

Opening balance
Addition during the period: Income tax withheld from
Dividend of PBL 1st ICB AMCL MF
Dividend of M.I. Cement Factory
Dividend of DESCO
Dividend of Power Grid Company
Dividend of BATBC
Dividend of RAK Ceramics
Dividend of S.Alam Cold Rolled Steels Ltd
Dividend of Confidence Cement Ltd
Dividend of Pragati Insurance Ltd
Dividend of Bata Shoe Company Ltd.
Dividend of Fareast Islami Life Insurance
Dividend of First Janata Bank Mutual Fund
Dividend of MJL Bangladesh Ltd
Dividend of Titas Gas
Dividend of GBB Power
Dividend of Square Pharmaceuticals Ltd.
Interest on bank deposit
AIT on capital gain under Section-82( c)
AIT on Companys car
Advance Income Tax for the year 2011 & 2012
Underwriting commission of BRAC Bank Ltd.
Underwriting commission of MJL Bangladesh Ltd.
13.
Amount int Taka
Share Capital
This represents amount received from Prime Bank Ltd as well as sponsor-directors which was subsequently transferred
to the Companys bank account. As at 31 December 2011, a total of 300,000,000 ordinary shares of Tk. 10 each were
issued subscribed and fully paid up. Details are as follows:
Authorized capital:
10,000,000,000
10,000,000,000
No. of shares
Percentage
(%)
Taka
299,999,994
6
300,000,000
99.99
0.01
100
2,999,999,940
60
3,000,000,000
1,000,000,000 ordinary shares of Tk. 10 each

Issued, subscribed and paid up capital:
Prime Bank Ltd.

Individuals

2012
15
2011

Deferred tax liabilities recognized in accordance with the provisions of BAS 12: Income taxes, is arrived as follows:
Balance as at 1 January
Addition/(Reversal) during the year
Balance as at 30 June
16
Amount in Taka
2,151,261
(947,784)
1,203,477
2,238,414
(87,154)
2,151,261
3,465,641,868
467,370,661
3,933,012,529
3,578,091,569
3,578,091,569
Loan Facilities
Balance of OD facilities from Prime Bank Ltd.
Balance of OD facilities from Bank Asia Ltd.
PBIL is enjoying OD (General) limit of Tk. 325.00 Crore from Prime Bank Ltd, Motijheel Branch bearing interest @ 14%
per annum on quarterly basis vide reference no. Prime/MJ/CR/2012/58162 dated 30 December 2012.
PBIL is enjoying OD (General) limit of Tk. 50.00 Crore from Bank Asia Ltd, Paltan Branch bearing interest @ 15% per
annnum on quarterly basis vide reference no. BA/PAL/CR/2012/1317 dated 18 April 2012.
17
Liability for Withholding Taxes

Opening balance
Payment during the period
Closing balance
18
649,404
91,848,371
(2,338,087)
90,159,688
44,100
280,000
(280,000)
44,100
83,800
(39,700)
44,100
923,947
6,527,500
115,000
332,982
91,151
18,426
28,000
8,037,006
412,918
5,800,000
62,700
332,982
111,468
19,729
150,219
141,194
34,338
26,852
7,092,400
325,915,764
178,586,273
504,502,037
400,000,000
400,000,000
Security Deposit Receipt (Earnest Money)

Opening balance
Payment during the period
Closing balance
19
90,159,688
2,269,858
(92,383,025)
46,521
Payable for Expenses

CDBL charges
Incentive bonus
Auditors fee
Office Rent
Electric bill
Wasa Bill
Closing Allowance
Security Expenses
Internet Bill
Refreshment
Utility bill, Uttara Branch
20
Provision for investment and margin loan

Provision for diminution in value of investment (20.01)
Provision for impairment of client margin loan (20.02)
20.01
Investments have been recorded at cost and adequate provision for probable future losses has been made. Market
value of securities has been determined on the basis of the value of securities at the last trading dates closing price of
the year i.e. 30 December 2012.
Opening balance
Add: Provision made for the year
Less: Reversal of provision during the year
Closing Balance
400,000,000
(74,084,236)
325,915,764
11,047,554
388,952,446
400,000,000

2012
Amount in Taka
2011
20.02
As per Press release# SEC/Mukhopatro/2011/696 dated 19 February 2013 of Bangladesh Securities and Exchange
Commission, 20% provision has been made for unrealized loss arising out of year-end (31.12.2012) revaluation of
shares purchased through margin loan. The press release prohibits payment of cash dividend if the company makes
less than 100% provision on such unrealized loss. The company declared 8% interim cash dividend amounting to Tk.
24 crore to the shareholders of the company. The interim dividend was declared on 31 December 2012 and paid on
30 January 2013.
21
Current Income Tax liabilities

Balance as of 1 January
253,038,532
293,589,588
Add: Tax expenses for the year 2012
155,000,467
253,038,532
(253,015,490)
(293,589,588)
155,023,509
253,038,532
Less: Adjusted during the year

Balance as of 31 December
22
Accounts Payable
Payable to Nabeel Mahmood
3,750
3,750
Payable to M/s. Nova Electronics
27,840
Payable to Business automation
620,000
10,000
34,713
Payable to Grameen Phone

Payable to K.I. Trading
3,240
Payable to CDBL
1,703,866
Payable to Ornate Security Services Ltd
94,806
Payable to NKN Styling and Service Ltd
40,631
Payable to Marshal Security Ltd.
20,316
10,000,000
5,750
5,750
67,718
32,166
5,966
Payable to Alpine Fresh Water Systems Ltd
33,900
Payable to PBSL Securities Ltd
27,731,780
Payable to Wifang Securities Ltd
48,573
Payable to PFI Securities Ltd
416,073
Payable to CMSL Securities Ltd
11,448,727
10,248,937
42,110,378
Payable to Deputy commissioner of Taxes

Payable to BEXIMCO
Payable to Punarbhaba Security Services Ltd
Payable to United Express
23
Dividend Payable
Opening balance
Add: Dividend payable during the period
Less: Payment during the period
Closing balance
240,000,000
360,000,001
(359,999,996)
240,000,006
The company declared 8% interim cash dividend amounting to Tk.24 crore to the shareholders of the company. The
interim dividend was declared on 31 December 2012 and paid on 30 January 2013.
24
Other Liabilities
Payable to Brokers
551,231
7,742,599
Payable to Clients
688,021
2,072,798
1,994,409
1,239,251
11,809,806
Un-earned Revenue

2012
25
Bank Interest on STD Accounts

Prime Bank Ltd
Clients deposit
Brokers deposit
Own Investment
28
31,149,300
20,668,800
99,260
216
1,927,850
395,400
14
3,024,000
1,346
60,367
3,898,500
48,603
61,273,656
147,600
30,000
177,600
150,000
200,000
180,000
609,600
1,139,600
369,592
1,838,783
422,360
2,630,735
93,164
46,913
26,217
166,295
13,662,803
11,915,861
2,268,900
1,337,130
5,200,000
144,000
34,528,694
12,768,110
9,946,350
1,860,175
1,172,994
5,800,000
171,000
31,718,629
9,819,593
59,762
1,394,754
11,274,109
9,574,902
6,591
869,679
10,451,172
Salary and Allowances

Basic pay
Allowances includes House rent, Medical, Conveyance
Bonus
Incentive bonus
Chauffeur Expenses
29
526,000
1,272,750
17,167,750
22,153,450
118,166
45
1,628,202
500,220
5,500
97,650
94,814
3
32
225
69,391
43,634,197
Underwriting Commission
GBB Power Ltd.
Keya Cosmetics Limited
Brac Bank Ltd
EXIM Bank Ltd
Barakatullah Electro Dynamics Ltd.
MJL Bangladesh Ltd
27
2011
Dividend on Investment in Shares

DESCO
Power Grid Company
Prime Bank 1st ICB AMCL Mutual Fund
BATBC
RAK Ceramics Ltd
S.Alam Cold Rolled Steels Ltd
Confidence Cement Ltd
Pragati Insurance Ltd.
Bata Shoe Company Ltd.
Fareast Islami Life Insurance
GBB Power Ltd.
Beximco Pharmaceuticals Ltd
EXIM Bank Ltd
First Janata Bank Mutual Fund
Square Pharmaceuticals Ltd
MJL Bangladesh Ltd
Titas Gas
M.I. Cement Factory
26
Amount in Taka
Rent, Taxes, Insurance and Electricity

Insurance
Electricity and water

2012
30
255,445
83,850
339,295
376,349
38,665
415,014
1,138,214
382,196
1,520,411
1,471,909
414,310
1,886,219
1,472,157
1,472,157
2,008,796
374,763
2,383,560
5,265,006
522,915
563,834
6,351,755
5,184,480
522,915
895,734
6,603,129
969,449
122,543
50,000
1,141,992
1,158,820
870,461
118,962
2,043,161
4,191,404
1,944,217
29,599
50,000
113,484
168,000
87,750
280,169
389,750
3,062,969
1,907,128
41,588
157,510
300,000
164,500
141,075
533,228
272,285
3,517,313
Tax Liability
(Tk.)
Tax Liability
(Tk.)
6,500
10
20
37.5
519,139
8,726,839
145,754,488
155,000,467
(947,784)
154,052,683
345,042
12,254,731
240,432,259
253,038,532
(87,154)
2,987,652
255,939,030
Postage, Stamp and Telecommunication

Postage, Internet & Newspaper
Telephone-office
32
Stationery, Printing and Advertisement

Office and printing stationery
33
Depreciation, Amortisation and Repairs

Depreciation/amortisation
Amortisation of preliminary expenses
Repair and maintenance
34
Entertainment, Traveling & Conveyance

Entertainment
Traveling Expenses
Conveyance
Development (Fair) Expenses
35
Other Expenses
Bank charges
Subscription to institutions
Donation
Exgratia
Plant Maintenance
Miscellaneous
Car expenses
36
2011
Legal Expenses
Professional charges
Legal fees
31
Amount in Taka
Tax Expenses
Current tax expenses
Capital gains on Phoenix Finance 1st MF

Tax paid U/S 53M which is final tax liability U/S 82/c
Capital gains on sale of shares
Dividend on shares
Business income
Deferred tax expense
Short provision of tax in 2010
Total
Head of
Income (Tk.)
5,191,395
43,634,197
388,678,635
437,504,227
Applicable
tax rate (%)

2012
37
2011
Earnings per share

Net profit after tax
Weighted average outstanding number of shares
Earnings per share
38
Amount in Taka
174,358,557
300,000,000
0.58
58,505,134
300,000,000
0.20
Contingent Liability
In order to comply with the governments direction (Circular# 53.014.03102.00.002.2012-72 dated 05 March 2012 issued
by Capital Market Section of Banking and Financial Institution Division of Ministry of Finance of The Government of the
Peoples Republic of Bangladesh on Special scheme for protecting interest of the affected small investors in capital
market.) to waive 50% interest of the affected clients, 761 clients who availed margin loan had been sorted under the
criteria of affected investors set by the Special Scheme Committee. The total amount stood at Tk. 15,256,732.85 if
50% interest charged against the margin loan of the affected clients during 1st January 2011 to 31st December 2011
is waived. This amount of Tk.15,256,732.85 has been regarded as a contingent liability instead of making a provision,
since the company is disputing such waiver.
39
Others
39.1 Figures in these notes and in the annexed financial statements have been rounded off to the nearest Taka.
39.2 These notes form an integral part of the annexed financial statements and accordingly are to be read in conjunction therewith.
Director
Vice-Chairperson
Dated, Dhaka
27 February 2013
35,774,588
31,585,442
3,521,636
35,107,078
PPE as at December 2011

Software as at December 2011
Grand total as at 31 December 2011
3,821,636
3,821,636
15,471,498
12,153,842
4,320,000
7,612
31,952,952
Grand Total at 31 December 2012 (a+b)
Software-Amortization
Software
Sub-total (b)

Office equipments
Vehicles
Books
Sub-total (a)
Particulars
Balance at 01
January 2012
367,510
300,000
667,510
474,932
474,932
474,932
Additions
31,952,952
3,821,636
35,774,588
36,249,520
3,821,636
3,821,636
15,471,498
12,628,774
4,320,000
7,612
32,427,884
Cost
Adjustment/
Balance at 31
Disposal during December 2012
the year
10
10
20
20
20
Rate
%
2,784,729
205,429
2,990,158
8,174,640
568,238
568,238
2,444,984
3,791,008
1,368,000
2,410
7,606,402
Balance at 01
January 2012
Details of property, plant and equipment at 31 December 2012
4,821,671
362,809
5,184,480
5,265,005
382,164
382,164
1,547,150
2,470,169
864,000
1,522
4,882,841
Depreciation
Charge
Adjustment/
during the
Disposal
year
during the year
2012
7,606,400
568,238
8,174,638
13,439,644
950,402
950,402
3,992,134
6,261,177
2,232,000
3,932
12,489,243
24,346,552
3,253,398
27,599,950
22,809,876
2,871,234
2,871,234
11,479,364
6,367,597
2,088,000
3,680
19,938,641
Annex-A
Amount in Taka
Written down
value at 31
Balance at
Dec 2012
31 December
Auditors Report
to the shareholders of Prime Bank Securities Limited
We have audited the accompanying financial statements of Prime Bank Securities Limited (PBSL) which comprise the
financial position as at 31 December 2012 and the statement of comprehensive income, statement of changes in equity and
statement of cash flows for the year then ended and a summary of significant accounting policies and other explanatory
information disclosed in Notes 1-22 to the financial statements.
Management of PBSL is responsible for the preparation and fair representation of these financial statements in accordance
with Bangladesh Financial Reporting Standards (BFRSs), and for such internal control as management determines is
or error.
accordance with Bangladesh Standards on Auditing. Those standards require that we comply with ethical requirements and
misstatement.
An audit involves performing procedures to obtain evidence about the amount and disclosures in the financial statements.
The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement
of the financial statements, whether due to fraud or error. In making those risks assessments, the auditor considers internal
control relevant to the entitys preparation and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys
internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that our audit provides a reasonable basis for our opinion.
Opinion
In our opinion, financial statements which have been prepared in accordance with Bangladesh Financial Reporting Standards
give a true and fair view of the state of affairs of the company as at 31 December 2012 and of its financial performance and
cash flows for the year then ended in accordance with Bangladesh Financial Reporting Standards.
Emphasis of Matter
Without qualifying our opinion we draw attention to note # 06 to the financial statements where the Company explains the
measurement procedure of DSE and CSE memberships cost.
(a)
(b)
(c)
(d)
we have obtained all the material information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit and made due verification thereof;
in our opinion, proper books of account as required by law have been kept by the Company so far as it appeared
from our examination of those books;
the Companys financial position and financial performance dealt with by the report are in agreement with the books
of account; and
the expenditure incurred was for the purposes of the Companys business.
Dated, Dhaka
26 February 2013
ACNABIN

Note
Amount in Taka
2012
2011
SOURCES OF FUNDS
Share Capital
750,000,000
750,000,000
Retained Earnings
33,096,718
4,495,828
783,096,718
754,495,828
7,492,430
9,326,599
Shareholders equity
APPLICATION OF FUNDS
Non-Current Assets (A)
5
Fixed assets
Intangible assets
1,217,647
815,796
Membership at cost
664,000,000
664,000,000
672,710,077
674,142,395
231,300
Current Assets (B)

313,800
Advance income tax
19,568,538
8,143,350
Investment in securities
77,051,850
32,472,977
Accounts receivable
10
Loan to customers
7,658,920
27,780,279
404,029,700
193,021,110
Preliminary expenses
11
614,121
1,228,243
12
190,740
4,803,433
509,427,669
267,680,692
Current Liabilities (C)

Accounts payable
13
14,933,195
40,849,889
Secured overdraft
14
352,278,429
135,253,198
Provision for diminution value of investment in shares
4,221,798
988,820
15.01
Provision for impairment of margin loan
597,088
Provision for Taxation
15
23,855,427
8,170,117
15
648,910
665,885
Provision for expenses
16
2,506,181
1,399,350
399,041,028
187,327,258
Net current assets D=(B-C)
110,386,641
80,353,434
Total assets (A+D)
783,096,718
754,495,828
Dated, Dhaka
26 February 2013
Director
Chairman
ACNABIN

Note
2012
Amount in Taka
2011
Operating Income
17
Revenue from brokerage commission
18
Interest income
Capital gain from investment in shares
Dividend income
19
Operating expenses
20
21
Direct expenses

Operating profit before provision C=(A-B)
Less: Provision for diminution in value of investment in shares
Total provision (D)
Operating profit before taxation E=(C-D)
15.01
15
Current tax
15
Deferred tax
Total provision for tax (F)
Net profit after tax [G=E-F]
52,419,765
20,187,773
58,355,301
8,507,103
8,850,564
1,916,822
944,511
108,873
859,572
328,617
121,429,712
31,049,188
65,988,517
14,144,974
7,341,905
2,583,564
73,330,421
16,728,538
48,099,291
14,320,650
3,232,978
988,820
597,088
3,830,066
988,820
44,269,225
13,331,830
15,685,310
8,170,117
(16,975)
665,885
15,668,336
8,836,002
0.38
0.06
28,600,890
Earnings per share
4,495,828
Dated, Dhaka
26 February 2013
Director
Chairman
ACNABIN

Particulars
Balance as at January 01, 2011
Share capital
Retained earnings
Total
750,000,000
750,000,000
4,495,828
4,495,828
Balance as at December 31, 2011
750,000,000
4,495,828
754,495,828
Balance as at January 01, 2012
750,000,000
4,495,828
754,495,828
Share capital
Profit for the year 2012
28,600,890
28,600,890
750,000,000
33,096,718
783,096,718
Profit for the year 2011
Balance as at December 31, 2012
Director
Chairman
Dated, Dhaka
26 February 2013
Statement of Cash flow

A
Amount in Taka
2012
2011
Cash flow from operating activities

Net profit during the year
28,600,890
4,495,828
2,503,407
614,122
(650,111)
3,232,978
597,088
6,297,484
1,114,469
631,372
(60,367)
988,820
2,674,294
Net cash used in operating activities
(82,500)
(11,425,188)
(44,578,873)
20,121,360
(211,008,590)
(16,975)
15,685,310
1,106,830
(25,916,694)
217,025,232
(39,090,088)
(4,191,714)
(231,300)
(8,145,350)
(22,739,059)
(27,780,279)
(193,021,110)
8,836,002
1,399,350
40,849,889
135,253,198
(65,578,659)
(58,408,537)
Cash flow from investing activities

Fixed assets acquisition
Intangible assets acquition
Net cash flows from investing activities
(412,490)
(658,600)
(1,071,090)
(10,387,589)
(869,275)
(11,256,864)

Issue of share capital
Dividend receipts
Dividend paid
Net cash from financing activities
650,111
650,111
60,367
60,367
D
E
F
Net cash increase / (decrease)

Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
(4,612,693)
4,803,433
190,740
(69,605,034)
74,408,467
4,803,433
4,895
185,845
190,740
10,817
4,792,616
4,803,433
Add: Amount considered as non-cash items

Depreciation & amortization charged
Write off of preliminary expenses
Dividend receipts
Provision for diminuation in value of investment
Provision for negative equity under margin loan
Changes in working capital
(Increase)/decrease in advances, deposits and prepayments
(Increase)/decrease in advance income tax
(Increase)/decrease in investments in securities
(Increase)/decrease in accounts receivable
(Increase)/decrease in loans to customers
(Increase)/decrease in deferred tax
Increase/(decrease) in current tax
Increase/(decrease) in expenses
Increase/(decrease) in accounts payable
Increase/(decrease) in secured overdraft
Cash in hand
Cash at Bank
Dated, Dhaka
26 February 2013
Director
Chairman

1.1
Status of the Company

The Prime Bank Securities Limited (the Company) was incorporated as a private limited company in Bangladesh
under Companies Act, 1994 vide certificate of incorporation no. C-84302 /10. It commenced its broker business
with one extension office from May 18, 2011 under the license issued by Bangladesh Securities and Exchange
Commission. Presently the company has 2 (two) offices including Head Office all over Bangladesh.
The registered office of the company is located at peoples Insurance Bhaban (11th floor) 36, Dilkusha Commercial
Area, Dhaka-1000.
1.2
Nature of Business
The principal objectives of the Company are to act as a member of Dhaka Stock Exchange Ltd. and Chittagong Stock
Exchange Ltd. to carry on the business of stock brokers / dealers in relation to shares and securities dealings and
other services as mentioned in the Memorandum and Articles of Association of the Company.
1.3
1.3.1 Basis of accounting

1.3.2 Statement of compliance
These financial statements have been prepared under the historical cost convention on a going concern basis and
in accordance with Bangladesh Financial Reporting Standards (BFRS), the Companies Act-1994, Securities and
Exchange Rules-1987 and other laws and rules applicable in Bangladesh.
1.3.3 Components of Financial Statements
The financial statements referred to here comprises:
a)
b)
c)
d)
e)
Statement of financial position

Statement of comprehensive income
Statement of change in equity
Statement of cash flows and
Notes to the financial statements
1.3.4 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. It
also requires disclosures of contingent assets and liabilities at the date of the financial statements. Actual results may
differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing concern basis. Revisions to accounting estimates
are recognized in the period in which the estimate is revised and in any future periods affected.
1.3.5 Statement of cash flows
Statement of cash flows is prepared in accordance with the Bangladesh Accounting Standard-7 Statement Cash
Flows and the cash flows from operating activities have been presented under indirect method.
1.4
Reporting period
These financial statements cover one calendar year from 1 January to 31 December 2012.
1.5
Share capital
Ordinary shares are classified as equity when there is no contractual obligation to transfer cash or other financial assets.
1.6

All fixed assets are stated at cost less accumulated depreciation as per BAS-16 Property, Plant and Equipment.
The cost of acquisition of an asset comprises its purchase price and any directly attributable cost of bringing the
asset to its working condition for its intended use inclusive of inward freight, duties and non-refundable taxes.

The Company recognizes in the carrying amount of an item of property, plant and equipment the cost of replacing
part of such an item when that cost is incurred if it is probable that the future economic benefits embodied with the
item will flow to the company and the cost of the item can be measured reliably. Expenditure incurred after the assets
have been put into operation, such as repairs and maintenance is normally charged off as revenue expenditure in
the period in which it is incurred.
Depreciation is charged on the basis of straight line method on all fixed assets at the following rate:
Category of assets
Rate(%)
20
Office equipment
25
Air conditioners
25
Computer and hardwares
25
Vehicle
20
For additions during the year, depreciation is charged for the remaining days of the year and for disposal
depreciation is charged up to the date of disposal.
On disposal of fixed assets, the cost and accumulated depreciation are eliminated from the fixed assets schedule
and gain or loss on such disposal is reflected in the income statement, which is determined with reference to the
net book value of the assets and net sale proceeds.
1.7
Intangible assets and amortization of intangible assets

An intangible asset is recognized if it is probable that the future economic benefits that are attributable to the asset
will flow to the entity and the cost of the assets can be measured reliably.
Software represents the value of computer application software licensed for use of the Company other than
those applied for the operating system of computers. Intangible assets are carried at their cost, less accumulated
amortization and impairment loss, if any.
Initial cost comprises license fees paid at the time of its acquisition and other directly attributable expenditures that
are incurred in customizing the software for its intended use.
Expenditure incurred for software is capitalized only when it enhances and extends the economic benefits of
software beyond its original specification and life and such cost is recognized as capital improvement and added to
the original cost of software.
Software is amortized using the straight-line method over the estimated useful life of 5 (five) years commencing
from the date of the acquisition available for use over the best estimates of its useful economic life.
1.8
Investment in Membership
Investment in membership are stated at cost. The cost of acquisition of an membership comprises its purchase
price and any directly attributable cost of bringing the asset to its working condition for its intended use inclusive of
stamp duty and non-refundable taxes, etc.
1.9
Advance, deposits and prepayments

- Advances are initially measured at cost. After initial recognition, advances are carried at cost less deductions,
adjustments or charges to other account heads such as property, plant and equipment, inventory, etc.
- Deposits are measured at payment value.
- Prepayments are initially measured at cost. After initial recognition, prepayments are carried at cost less charges
to Statement of Comprehensive Income.
1.10
Advance Income tax

The amount of advance income tax are mainly deduction at sources by DSE & CSE on daily transaction of broker &
dealer operation. Tax deduction on interest income and dividend income are also included here.

1.11
Investments in securities
Investment in marketable and non-marketable ordinary shares has been shown at cost. Full provision for diminution
in value of shares as on closing of the year on an aggregate portfolio basis has been made in the account.
1.12
Account receivables
Receivables are recognized when there is a contractual right to receive cash or another financial asset from another
entity.
1.13
Loans to customers
Loans to customers are stated in the balance sheet on gross basis. Interest is calculated on a daily product basis but
charged and accounted for on accrual basis. Interest on customer loans is realized quarterly.
1.14
Preliminary and pre-operating expenses

These are recognized as an asset if it is probable that future economic benefits that are attributable to the asset will
flow to the enterprise and cost of the asset can be measured reliably. These are amortized over 3 years from the year
of their first utilization at the rate of Taka 631,372 per year.
1.15

Cash and cash equivalents include notes and coins on hand, unrestricted balances held with Banks and highly liquid
financial assets which are subject to insignificant risk of changes in their fair value, and are used by the Company
management for its short-term commitments.
1.16

Provision for current income tax has been made in compliance with relevant provisions of Income Tax law.
1.17
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 recognized 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 recognized in the profit and loss account as per BAS-12 Income Taxes.
1.18
Secured overdraft
Borrowing fund include borrowings from Prime Bank Limited, which is stated in the statement of financial position at
secured overdraft. Interest on secured overdraft is recognized in statement of comprehensive income.
1.19
Incentive bonus
Prime Bank Securities Ltd. started a incentive bonus scheme for its employees. 10% of net profit after tax is given
to the employees in every year as incentive bonus. This bonus amount is being distributed among the employees
based on their performance. The bonus amount is paid annually, normally first quarter of every following year and
the cost are accounted for the period to which it relates.
1.20

A provision is recognized in the balance sheet when the Company has a legal or constructive obligation as a result
of a past event and it is probable that an outflow of economic benefit will be required to settle the obligations, in
accordance with the BAS 37 Provisions, Contingent Liabilities and Contingent Assets.
1.21
Brokerage commission
Brokerage commission is recognized as income when selling or buying order executed.
1.22
Interest income on marginal loan

Interest income on margin loan is recognized on accrual basis. Such income is calculated on daily margin loan
balance of the respective customers. Income is recognized on monthly but realized quarterly.

1.23
Capital gain on sale of share

Capital gain on investments in shares is recognized when it is realized.
1.24
Fees income
Fees income arises on services provided by the Company are recognized on accrual basis.
1.25

Dividend income on shares is recognized when the shareholders right to receive payment is established.
1.26
Interest paid and other expenses

In terms of the provisions of BAS-1 Presentation of Financial Statements interest and other expenses are
recognized on accrual basis.
1.27
Earnings per share

Basic earnings per share has been calculated in accordance with BAS 33 Earnings per Share which has been
shown on the face of the profit and loss account. This has been calculated by dividing the profit attributable to the
ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.
1.28

Where necessary, all the material events after the reporting period date have been considered and appropriate
adjustment/disclosures have been made in the financial statements.
1.29
Directors responsibility on financial statements

The board of directors of the company is responsible for the preparation and presentation of these financial
statements.
1.30 Related party transaction

Related party transaction is a transfer of resources, services or obligation between related parties and here the
related party transactions are the loan taken from Prime Bank Limited and the brokerage transactions done by the
Company for Prime Bank Investment Ltd. as its client, within the financial period.
2.00
General
a)
These financial statements are presented in Taka, which is the Companys functional currency. Figures
appearing in these financial statements have been rounded off to the nearest Taka.
b)
The expenses, irrespective of capital or revenue nature, accrued / due but not paid have been provided
for in the books of the Company.
c)
Figures of previous year have been rearranged whenever necessary to conform to current years
presentation.

2012
3
Share capital
Authorized capital
150000000 ordinary shares of Tk.10 each
Issued, subscribed and paid-up capital
75,000,000 ordinary shares of Taka 10 each issued and fully paid each
Shareholding position of the company is as under
Prime Bank Limited
Retained earnings
Opening balance-Broker
Opening balance-Dealer
Add: Net profit during the year
Less: Dividend
Closing balance
Fixed assets less depreciation

Office equipment
Vehicle
Air conditioners
Computer & hardware
Depreciation
Opening balance
Add: Depreciation for 2012
Less: Depreciation for disposal
Closing balance
Intangible assets
Back office software-Broker
Back office software-Dealer
Web development
Anti virus software
Amortization
Opening balance
Add: Amortization during the year
Less: Amortization for disposal
Closing balance
Details in annexure-A
Amount in Taka
2011
1,500,000,000
1,500,000,000
750,000,000
750,000,000
Number of shares
71,250,000
3,750,000
75,000,000
Taka
712,500,000
37,500,000
750,000,000
2,481,403
2,014,425
4,495,828
28,600,890
33,096,718
33,096,718
4,495,828
4,495,828
4,495,828
1,255,574
338,700
1,135,500
5,902,620
2,167,685
10,800,079
1,183,584
1,135,500
5,902,620
2,165,885
10,387,589
1,060,990
2,246,659
3,307,649
7,492,430
1,060,990
1,060,990
9,326,599
1,111,000
150,000
200,000
66,875
1,527,875
665,000
150,000
53,479
256,748
310,228
1,217,647
53,479
53,479
815,796
54,275
869,275
Membership at cost
This represents the amount paid for purchasing membership of Dhaka Stock Exchange Limited (DSE) and
Chittagong Stock Exchange Limited (CSE) including stamp duty for transferring shares.
Purchase of DSE membership
507,500,000
507,500,000
Purchase of CSE membership
156,500,000
156,500,000
664,000,000
664,000,000
We have measured DSE and CSE memberships at cost instead of fair value. As there is no active market for
DSE and CSE memberships and the market price of the same fluctuates significantly over time, we shown the
value at cost.

2012
7

Security deposit with CDBL
Security deposit with CSE
Advances for software maintenance fees
Security deposit with T&T
Advance income tax

Opening balance
Add: Tax deduction during the year:
Advance income tax deducted by DSE on transaction-Broker
Advance income tax deducted by DSE on transaction-Dealer
Advance income tax deducted by CSE on transaction
Advance income tax deducted by Bank on deposits
Direct tax
Advance income tax deducted by Bank on deposits-Dealer
Advance income tax deducted on dividend
Cost Price
The City Bank Ltd.
DESCO
IFIC Bank Ltd.
Jamuna Oil
Lafarge Surma Cement
Lankabangla Finance
National Housing Finance and Investment Ltd.
One Bank Ltd.
Phonix Finance and Investment Ltd.
Rupali Insurance Company Ltd.
Square Pharmaceutical Ltd
Unique Hotel
Uttara Bank Ltd.
M.I. Cement Factory Ltd.
MJL Bangladesh Ltd.
Total Cost price (A)
Market Price (B)
Loss for diminution in value of investment in shares (C=A-B)
20% provision for unrealized loss arising out of year end
(31/12/12) revaluation of shares purchased*(d=C X 20%)
Less: Provision already kept in last year
Net provision
Details in annexure-B
Amount in Taka
2011
200,000
25,000
82,500
6,300
313,800
200,000
25,000
6,300
231,300
8,143,350
11,026,941
197,994
23,535
9,217
26,767
1,009
139,726
11,425,188
19,568,538
7,791,466
32,894
132,300
174,409
224
12,057
8,143,350
8,143,350
4,578,419
10,721,200
14,105,710
4,276,300
8,763,100
4,602,900
10,844,135
6,546,850
6,640,500
5,972,735
77,051,850
4,270,419
7,468,135
4,049,988
6,070,050
1,766,430
1,239,090
3,608,809
4,000,056
32,472,977
55,942,860
21,108,990
31,484,157
988,820
4,221,798
988,820
3,232,978
988,820
*As per Press release# SEC/Mukhopatro/2011/696 dated 19 February 2013 of Bangladesh Securities and
Exchange Commission, 20% provision has been made for unrealized loss arising out of year-end (31.12.2012)
revaluation of shares purchased as dealer.
10
Accounts receivable
Receivable from DSE
Receivable from DSE-Dealer
Receivable from PBIL
Dividend receivable
Receivable from clients
7,317,754
46,766
294,400
7,658,920
48,506
27,731,774
27,780,279

2012
11
1,859,615
631,372
1,228,243
4,895
10,817
8,865
30,638
102,647
5,340
14,505
23,850
185,845
190,740
4,222,066
83,542
335,801
120,858
29,640
708
4,792,616
4,803,433
57,192
159,892
9,519,781
283,220
4,913,110
14,933,195
29,028,119
23,356
10,907,860
890,554
40,849,889
352,278,429
135,253,198
Accounts payable
Payable to DSE
Payable to CDBL
Payable to clients
Security deposits
Payable to PBIL
14
1,228,243
614,122
614,121
Cash and cash equivalent

Cash in hand
Cash at Bank:
One Bank Limited (SND)-DSE Broker
One Bank Limited (SND)-DSE Dealer
One Bank Limited (CD)-DSE Broker
Prime Bank Limited (CD)-Operation
Prime Bank Limited (CD)-DSE Broker
Prime Bank Limited (CD)-CSE Broker
13
2011
Preliminary expenses
Opening balance
Add: expenses made during the year
Less: Write-off in 2012
12
Amount in Taka
Secured Overdraft from Prime Bank Ltd, Motijeel Branch
The above loan, overdraft (general), was taken from Prime Bank Ltd, Motijheel Branch bearing interest @ 14.50%
per annnum on quarterly basis vide reference no. Prime/MJ/CR/2011/33809 dated 04 September 2011.
15
Provision for tax

Current tax
Opening balance
Add: Provision for the during year
Less: Provision adjusted during the year
Closing balance
Deferred tax
Opening balance
Add: Provision for the during year
Less: Provision adjusted during the year
Closing balance
15.01
8,170,117
15,685,310
23,855,427
8,170,117
8,170,117
665,885
(16,975)
648,910
24,504,337
665,885
665,885
8,836,002
2,985,439
597,088

Impaired margin loan as at 31st December 2012
20% provision for unrealized loss arising out of year end (31/12/12)
revaluation of shares purchased*.
*As per Press release# SEC/Mukhopatro/2011/696 dated 19 February 2013 of Bangladesh Securities and
Exchange Commission, 20% provision has been made for unrealized loss arising out of year-end (31.12.2012)
revaluation of shares purchased through margin loan.

2012
16
Commission from PBSL

Dhaka Stock Exchange
Chittagong Stock Exchange
33,000
52,000
2,000
28,000
126,000
60,000
14,000
77,550
500,000
449,000
41,800
16,000
2,506,181
1,399,350
18,463,381
38,423
18,501,804
14,813,162
341,392
15,154,555
33,845,483
72,478
33,917,961
52,419,765
4,992,670
40,548
5,033,218
20,187,773
58,253,044
102,256
58,355,301
6,760,777
1,746,326
8,507,103
215,000
337,072
13,500
235,000
59,000
859,572
131,000
160,617
37,000
328,617
Interest income
Interest income from margin loan
Interest on deposits
19
265,000
63,250
7,500
25,000
83,246
55,000
8,000
395,100
1,459,085
69,000
69,000
7,000
Revenue from brokerage commission

Commission from PBIL
Dhaka Stock Exchange
Chittagong Stock Exchange
18
2011
Provision for expenses

Internet bill
Water bill
Telephone bill
Office rent
Electricity bill
Wasa bill
Salary-PF
Salary arrear
Incentive bonus
Audit fee
Professional fees
Fuel
Provision for negative equity
17
Amount in Taka

BO opening charge
CDBL income
Pledge charge
Annual maintenance fee
Others

2012
20
76,300
17,300
157,600
20,900
1,114,469
4,700
6,700
3,000
56,384
353,770
4,940
21,600
14,700
2,000
631,372
14,144,974
6,232,120
2,569,312
424,548
961,058
454,633
531,112
6,500
11,179,283
1,953,018
782,318
125,500
289,200
38,775
500,000
3,688,811
45,183
806,550
41,618,117
42,469,849
47,457
518,070
3,044,198
3,609,724
668,389
263,313
93,446
37,761
67,017
899,340
2,029,266
366,125
170,032
105,055
15,323
26,261
463,332
1,146,127
Financial Expenses
Bank charge & commission
Commission on Bank guarantee
Interest on loan
11,179,283
977,500
1,430,000
475,414
42,469,849
2,620,610
2,029,266
6,990
44,510
18,975
202,144
69,000
186,185
110,800
2,503,407
9,700
44,499
687,501
14,644
14,400
153,519
126,198
614,122
65,988,517
3,688,811
599,400
449,000
167,466
3,609,724
1,489,742
1,146,127
6,840
13,250
26,700
347,017
115,161
Salaries & Allowances

Basic salary
House rent
Conveyance allowance
Medical allowance
Leave fare assistance
Provident fund
Others
Technical allowance
2011
Operating expenses
Salary & allowances(a)
Festival bonus
Incentive bonus
Entertainment
Financial expenses (b)
Office rent
Utility bill ( C)
Repair & maintenance
Conveyance and traveling
Remuneration
Printing and stationery
Advertisement
Directors fee
Audit fee
Legal fee
Fees and renewal (d)
Professional fee
Depreciation (e)
Subscription & donation
Facilities expenses
Training expenses
Office maintenance
Security & cleaning
Newspaper & magazine
Internship allowances
Computer accessories
Vehicle expenses
Website expenses
Write off of preliminary expenses
Amount in Taka
Utilities
Electricity bill
Telephone bill
Wasa bill
Water bill (Drinking)
Fuel-generator
Internet bill

2012
d
Software
30,000
4,200
82,500
186,185
54,000
10,700
2,500
70,000
20,400
157,600
408,530
1,223,078
307,638
283,875
23,538
2,246,659
256,748
2,503,407
194,867
589,213
140,806
136,104
1,060,990
53,479
1,114,469
687,270
4,498,211
2,146,337
10,086
7,341,905
283,956
1,921,646
373,973
3,989
2,583,564
Direct expenses
Howla
Laga
CDBL charge
Investor protection fund
22
24,000
36,500
8,985
Depreciation & amortization

Furniture & fixture
Computer & hardware
Office equipment
Air conditioner
Vehicles
21
2011
Fees & renewal

SEC
DSE
RJSC
CDBL
TWS installation fees
Entrance fees
Software maintenance fees
Amount in Taka
Bank Guarantee
As per trading rules of Dhaka Stock Exchange, Bank Guarantee is required for transactions (Buy) in a day
exceeding Tk.5 crore. Prime Bank Securities Limited has received Bank Guarantee for Tk.15 crore from Prime
Bank Limited, Motijheel Branch, Dhaka. Documents related to the Bank Guarantee have been submitted to
Dhaka Stock Exchange.
2,165,885
10,387,589
5,902,620
Software
Particulars
658,600
658,600
869,275
Cost
Addition
Disposal
during the
during the
year
year
1,800
412,490
338,700
71,990
Cost
Addition
Disposal
during the
during the
year
year
869,275
Opening
balance
Schedule of amortization
as at December 31, 2012
Computer & hardwares
1,135,500
Air conditioners
Vehicles
1,183,584
Opening
balance
Office equipment
Particulars
Schedule of depreciation
1,527,875
1,527,875
Total Cost
2,167,685
10,800,079
5,902,620
338,700
1,135,500
1,255,574
Total cost
Rate
Rate
0.20
0.20
0.25
0.20
0.25
0.25
53,479
53,479
Opening
balance
194,867
1,060,990
589,213
136,104
140,806
Opening
balance
256,748
256,748
Amortization
Charged
Disposal
during the during the
year
year
408,530
2,246,659
1,223,078
23,537.54
283,875
307,638
Depreciation
Charged
Disposal
during the during the
year
year
310,228
310,228
Total
amortization
603,397
3,307,649
1,812,291
23,538
419,979
448,444
Total
depreciation
1,217,647
1,217,647
Total
written
down value
1,564,288
7,492,430
4,090,329
315,162
715,521
807,130
Total
written
down value
Annexure-A

100,000
52,000
Unique Hotel
Uttara Bank Ltd.
84,000
400,000
60,000
Phonix Finance and Investment Ltd.
One Bank Ltd.
National Housing Finance and Investment Ltd.
100,000
Lankabangla Finance Ltd.
56,160
Jamuna Oil
100,000
115,000
DESCO
Lafarge Surma Cement Ltd
110,000
Quantity
The City Bank Ltd.
Instrument
59.73
127.70
77.94
27.11
76.72
87.63
42.76
251.17
93.23
41.62
Rate
77,051,850
5,972,735
6,640,500
6,546,850
10,844,135
4,602,900
8,763,100
4,276,300
14,105,710
10,721,200
4,578,419
Total cost
38.10
126.20
44.60
22.80
37.40
59.00
32.90
178.50
72.10
26.80
Market rate
55,936,860
3,810,000
6,562,400
3,746,400
9,120,000
2,244,000
5,900,000
3,290,000
10,024,560
8,291,500
2,948,000
Market value
(21,114,990)
(2,162,735)
(78,100)
(2,800,450)
(1,724,135)
(2,358,900)
(2,863,100)
(986,300)
(4,081,150)
(2,429,700)
(1,630,419)
Gain / loss
Annexure-B
Reprot of the Directors

Prime Exchange Co. Pte. Ltd.
The directors present their report to the member together with the audited financial statements of the Company for the
financial year ended 31 December 2012.
The directors of the Company in office at the date of this report are as follows:
Tanjil Chowdhury
Md. Ehsan Khasru
Sharmila Gunasingham
Ainun Nishat (appointed on 23.1.2013)
ARRANGEMENTS TO ENABLE DIRECTORS TO ACQUIRE BENEFITS BY MEANS OF THE ACQUISITION OF SHARES
AND DEBENTURES
Neither at the end of the financial year nor at any time during the financial year did there subsist any arrangement to which
the Company is a party, being arrangements whose objects are, or one of whose objects is, to enable the directors of the
Company to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body
corporate.
DIRECTORS INTERESTS IN SHARES OR DEBENTURES
According to the register kept by the Company for the purposes of section 164 of the Singapore Companies Act, the
interests of the directors who held office at the end of the financial year in the shares of the Company and the related
corporation were as follows:
Direct interest
At beginning
At end of
of financial
financial
year
year
Tanjil Chowdhury
Md. Ehsan Khasru
Sharmila Gunasingham
Name of directors
The Company
(Ordinary shares)
Except as disclosed in this report, no directors who held office at the end of the financial year had interests in shares, share
options, warrants or debentures of the Company, or of the related corporation, either at the beginning of the financial year
or at the end of the financial year.
Reprot of the Directors

DIRECTORS CONTRACTUAL BENEFITS
Except as disclosed in the financial statements, since the end of the previous financial year, no director of the Company
has received or become entitled to receive a benefit by reason of a contract made by the Company or a related corporation
with the director or with a firm of which the director is a member, or with a company in which the director has a substantial
financial interest.
SHARE OPTIONS
During the financial year, there were:
no options granted by the Company to any person to take up unissued shares of the Company; and
no shares issued by virtue of any exercise of option to take up unissued shares of the Company.
At the end of the financial year, there were no unissued shares of the Company under option.
AUDITORS
The auditors, C. C. Yang & Co., have expressed their willingness to accept re-appointment.
Md. Ehsan Khasru
Tanjil Chowdhury
18 February 2013
30 January 2013
Statement by Directors
In the opinion of the directors,
(a) the accompanying financial statements set out in the following sections of the financial statements:
Notes, comprising a summary of significant accounting policies and other explanatory information
are drawn up so as to give a true and fair view of the state of affairs of the Company as at 31 December 2012
and the results, changes in equity and cash flows of the Company for the financial year then ended; and
(b) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as
and when they fall due.
Md. Ehsan Khasru

18 February 2013
30 January 2013
Tanjil Chowdhury
Independent Auditors Report

to the Member of Prime Exchange Co. Pte. Ltd.
Report on the Financial Statements
We have audited the accompanying financial statements of Prime Exchange Co. Pte. Ltd. (the Company), which comprise
the statement of financial position as at 31 December 2012, and the statement of comprehensive income, statement of
changes in equity and statement of cash flows for the financial year then ended, and a summary of significant accounting
policies and other explanatory information.
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the
provisions of the Singapore Companies Act, Chapter 50 (the Act) and Singapore Financial Reporting Standards, and for
devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets
are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that
they are recorded as necessary to permit the preparation of true and fair profit and loss account and balance sheet and to
maintain accountability of assets.
accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and
misstatement.
statements. The procedures selected depend on the auditors judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entitys preparation of the financial statements that give a true and fair view in order
to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
Opinion
In our opinion, the financial statements are properly drawn up in accordance with the provisions of the Act and Singapore
Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Company as at 31 December
2012 and of the results, changes in equity and cash flows of the Company for the financial year ended on that date.
In our opinion, the accounting and other records required by the Act to be kept by the Company have been properly kept in
accordance with the provisions of the Act.
C.C. YANG & CO.

PUBLIC ACCOUNTANTS AND
CERTIFIED PUBLIC ACCOUNTANTS
SINGAPORE
18 February 2013

(Expressed in Singapore Dollars)

Note
Commission Income
2012
2011
560,416
314,463
5,120
5,850
Other Income
Employee Benefits Expense
(305,034)
(259,718)
Depreciation
(230,249)
(229,427)
259,663
336,435
(348,080)
(263,176)
141,836
104,427
Foreign Currency Gains

Other Expenses
Profit Before Income Tax

Income Tax Benefit (Expense)
Net Profit for the Year
(13,401)
4,249
128,435
108,676
Other Comprehensive Income

Other Comprehensive Income, Net of Tax
Total Comprehensive Income
$ 128,435
The accompanying notes form an integral part of these financial statements
$ 108,676

Note
2012
2011
ASSETS
Non-Current Assets
Total Non-Current Assets

Current Assets
Other Receivables
Cash and Bank Balances

Fixed Deposits
9, 10
10
Total Current Assets

Total Assets
78,104
41,618
78,104
41,618
90,749
39,252
571,851
540,878
814,067
731,483
$ 892,171
$ 773,101
250,000
250,000
719,778
591,343
6,615
2,869
6,615
2,869
156,312
178,556
165,778
178,889
$ 892,171
$ 773,101
151,467
151,353
EQUITY AND LIABILITIES

Equity
Share Capital
11
Retained Earnings
Total Equity
Non-Current Liabilities
Deferred Tax Liabilities
12
Total Non-Current Liabilities

Current Liabilities
Trade and Other Payables

Tax Payable
Total Current Liabilities

Total Equity and Liabilities
13
469,778
341,343
9,466
333
Statement of Changes In Equity

Note
Balance at 1.1.2011
Share
Capital
$
250,000
Total Comprehensive
Income for the Year - 2011
Retained
Earnings
$
Total
$
330,737
580,737
108,676
108,676
( 98,070)
( 98,070)
( 98,070)
( 98,070)
341,343
591,343
128,435
128,435
$ 469,778
$ 719,778
Distributions to Owner
Dividends
16
Total Distributions to Owner
Balance at 31.12.2011
250,000
Total Comprehensive
Income for the Year - 2012
$ 250,000

Note
Cash Flows From Operating Activities
Profit Before Income Tax
2012
$
2011
$
141,836
104,427
30,249
29,427
171,965
133,004
Adjustments For:
Depreciation
Interest Income
(120)
Operating Profit Before Working

Capital Changes
Decrease (Increase) in
(850)
Other Receivables
(37,815)
15,331
Trade and Other Payables
(22,244)
83,492
111,906
231,827
114
865
Increase in
Cash Flows Generated From Operations
Income Tax Paid
(522)
Interest Received
Net Cash Flows From Operating Activities
(4,056)
111,498
228,636
Purchase of Property, Plant and Equipment
(66,735)
(56,506)
Net Cash Flows Used In Investing Activities
(66,735)
(56,506)
Cash Flows From Investing Activities
Cash Flows From Financing Activities

Dividends Paid On Ordinary Shares
(98,070)
Increase in Amount Due From Holding Company
(13,676)
Net Cash Flows Used In Financing Activities
(13,676)
(98,070)
31,087
74,060
692,231
618,171
$ 723,318
$ 692,231
Net Increase in
Cash and Cash Equivalents

at Beginning of Year

at End of Year
10

These notes form an integral part of and should be read in conjunction with the accompanying financial statements.
1.
CORPORATE INFORMATION
Prime Exchange Co. Pte. Ltd. is a limited liability company incorporated and domiciled in the Republic of Singapore
whose registered office and principal place of business is located at 2A Desker Road Singapore 209549 and
another branch at Block 134 #01-305 Jurong Gateway Road Singapore 600134.
The Company is a wholly-owned subsidiary of PRIME BANK LIMITED, incorporated in Bangladesh, which is also
the Companys ultimate holding company.
The principal activities of the Company are to carry on the remittance business and to undertake and participate in
transactions, activities and operations commonly carried on or undertaken by remittance and exchange house.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1
Basis of preparation
The financial statements of the Company have been prepared in accordance with Singapore Financial
Reporting Standards (FRS) and the applicable requirements of the Singapore Companies Act.
The financial statements have been prepared on the historical cost basis except as disclosed in the
accounting policies below.
Functional currency
The management has determined the currency of the primary economic environment in which the Company
operates i.e. functional currency, to be the Singapore dollars. Revenue and major costs of providing
services including major operating expenses are primarily influenced by fluctuations in Singapore dollars.
The financial statements are presented in Singapore dollars.
2.2
Changes in accounting policies

The accounting policies adopted are consistent with those of the previous financial year except in the
current financial year, the Company has adopted all the new and revised standards and Interpretations of
FRS (INT FRS) that are relevant to its operations and effective for annual periods beginning on or after 1
January 2012. The adoption of these standards and interpretations did not have any effect on the financial
performance or position of the Company.

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contd)

2.3
Standards issued but not yet effective
The Company has not adopted the following standards and interpretations that have been issued but are
only effective for annual financial periods beginning on or after the respective dates.
Effective 1 July 2012
Amendments to FRS 1
- Presentation of Items of Other Comprehensive

Income
Effective 1 January 2013

Revised FRS 19
- Employee Benefits
FRS 113
- Fair Value Measurements
Amendments to FRS 107
- Disclosures Offsetting Financial Assets and

Financial Liabilities
Improvements to FRSs 2012:

Amendments to FRS 1
- Presentation of Financial Statements
- Property, Plant and Equipment
- Financial Instruments : Presentation
Effective 1 January 2014

Revised FRS 27
- Separate Financial Statements
Revised FRS 28
- Investments in Associates and Joint Ventures
FRS 110
- Consolidated Financial Statements
FRS 111
- Joint Arrangements
FRS 112
- Disclosure of Interests in Other Entities
- Offsetting Financial Assets and Financial

Liabilities
Except for the Amendments to FRS 1 and FRS 112, the directors expect that the adoption of the other
standards and interpretations above will have no material impact on the financial statements in the
period of initial application. The nature of the impending changes in accounting policy on adoption of the
Amendments to FRS 1 and FRS 112 is described below.
Amendments to FRS 1 Presentation of Items of Other Comprehensive Income

The Amendments to FRS 1 change the grouping of items presented in Other Comprehensive Income
(OCI). Items that could be reclassified to profit or loss at a future point in time would be presented
separately from items which will never be reclassified. As the Amendments only affect the presentations
of items that are already recognised in OCI, the Company does not expect any impact on its financial
position or performance upon adoption of this standard.

2.

2.3
Standards issued but not yet effective (Contd)

FRS 112 Disclosure of Interests in Other Entities
FRS 112 is a new and comprehensive standard on disclosure requirements for all forms of interests in other
entities, including joint arrangements, associates, special purpose vehicles and other off balance sheet
vehicles. FRS 112 requires an entity to disclose information that helps users of its financial statements
to evaluate the nature and risks associated with its interests in other entities and the effects of those
interests on its financial statements. The Company is currently determining the impact of the disclosure
requirements. As this is a disclosure standard, it will have no impact to the financial position and financial
performance of the Company when implemented in 2014.
2.4

All items of property, plant and equipment are initially recorded at cost. Subsequent to recognition,
property, plant and equipment are measured at cost less accumulated depreciation and any accumulated
impairment losses. The cost includes the cost of replacing part of the property, plant and equipment. The
cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that
future economic benefits associated with the item will flow to the Company and the cost of the item can
be measured reliably.
Subsequent expenditure relating to property, plant and equipment that has already been recognised
is added to the carrying amount of the asset only when it is probable that future economic benefits
associated with the item will flow to the Company and the cost of the item can be measured reliably. Other
subsequent expenditure is recognised as repair and maintenance expense in the profit or loss during the
financial year in which it is incurred.
Depreciation is computed on the straight line method to write off the cost of property, plant and equipment
over the estimated useful lives. The estimated useful lives of property, plant and equipment are as
follows:Furniture & fittings
3 years
Office equipment
3 years
Renovation
3 years
Fully depreciated assets are retained in the accounts until they are no longer in use and no further charge
for depreciation is made in respect of these assets.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes
in circumstances indicate that the carrying value may not be recoverable.
The residual value, useful life and depreciation method are reviewed at the end of each reporting year to
ensure that the amount, method and period of depreciation are consistent with previous estimates and
the expected pattern of consumption of the future economic benefits embodied in the items of property,
plant and equipment.
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is
included in the profit or loss in the financial year the asset is derecognised.

2.

2.5
Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be
impaired. If any such indication exists, or when an annual impairment assessment for an asset is required,
the Company makes an estimate of the assets recoverable amount.
An assets recoverable amount is the higher of an assets or cash-generating units fair value less costs to
sell and its value in use and is determined for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets or group of assets. Where the carrying
amount of an asset or cash-generating unit exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount. In assessing value in use, the estimated future
cash flows expected to be generated by the asset are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset. In determining fair value less costs to sell, recent market transactions are taken into account,
if available. If no such transactions can be identified, an appropriate valuation model is used. These
calculations are corroborated by valuation multiples or other available fair value indicators.
Impairment losses are recognised in the profit or loss except for assets that are previously revalued where
the revaluation was taken to other comprehensive income. In this case, the impairment is also recognised
in other comprehensive income up to the amount of any previous revaluation.
An assessment is made at each reporting date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. If such indication exists, the
Company estimates the assets or cash-generating units recoverable amount. A previously recognised
impairment loss is reversed only if there has been a change in the estimates used to determine the
assets recoverable amount since the last impairment loss was recognised. If that is the case, the carrying
amount of the asset is increased to its recoverable amount. That increase cannot exceed the carrying
amount that would have been determined, net of depreciation, had no impairment loss been recognised
previously. Such reversal is recognised in the profit or loss unless the asset is measured at revalued
amount, in which case the reversal is treated as a revaluation increase.
2.6
Financial assets
Financial assets are recognised on the statement of financial position when, and only when, the Company
becomes a party to the contractual provisions of the financial instrument. The Company determines the
classification of its financial assets at initial recognition.
Non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market are classified as loans and receivables. Such assets are initially recognised at fair value, plus
directly attributable transaction costs and subsequently carried at amortised cost using the effective
interest method less impairment. Gains and losses are recognised in the profit or loss when the loans and
receivables are derecognised or impaired, and through the amortisation process.
A financial asset is derecognised when the contractual right to receive cash flows from the asset has
expired. On derecognition of a financial asset in its entirety, the difference between the carrying amount
and the sum of the consideration received and any cumulative gain or loss that has been recognised
directly in other comprehensive income is recognised in the profit or loss.

2.

The Company classifies the following financial assets as loans and receivables:
Cash and short term deposits
Other receivables, including amount due from holding company
2.7
Impairment of financial assets

The Company assesses at the end of each reporting year whether there is any objective evidence that a
financial asset or group of financial assets is impaired and recognises an allowance for impairment when
such evidence exists.
If there is objective evidence that an impairment loss on loans and receivables carried at amortised cost
has been incurred, the amount of the loss is measured as the difference between the assets carrying
amount and the present value of estimated future cash flows discounted at the financial assets original
effective interest rate. If a loan has a variable interest rate, the discount rate for measuring any impairment
loss is the current effective interest rate. The carrying amount of the asset is reduced through the use of
an allowance account. The impairment loss is recognised in the profit or loss.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be
related objectively to an event occurring after the impairment was recognised, the previously recognised
impairment loss is reversed to the extent that the carrying amount of the financial asset does not exceed
its amortised cost at the reversal date. The amount of reversal is recognised in the profit or loss.
2.8

Cash and cash equivalents comprise cash and bank balances and fixed deposits that are readily
convertible to known amounts of cash and which is subject to an insignificant risk of changes in value.
2.9
Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefit will be required to
settle the obligation and the amount of the obligation can be estimated reliably.
Provisions are reviewed at the end of each reporting year and adjusted to reflect the current best estimate.
If it is no longer probable that an outflow of economic resources will be required to settle the obligation,
the provision is reversed. If the effect of the time value of money is material, provisions are discounted
using a current pre tax rate that reflects current market assessments of the time value of money and the
risks specific to the liability. When discounting is used, the increase in the provision due to the passage of
time is recognised as a finance cost.
2.10
Financial liabilities
Financial liabilities are recognised on the statement of financial position when, and only when, the Company
becomes a party to the contractual provisions of the financial instrument. The Company determines the
classification of its financial liabilities at initial recognition.
All financial liabilities are recognised initially at fair value plus in the case of financial liabilities not at fair
value through profit or loss, directly attributable transaction costs.
Subsequent to initial recognition, derivatives are measured at fair value. Other financial liabilities (except
for financial guarantee) are measured at amortised cost using the effective interest method.
For financial liabilities other than derivatives, gains and losses are recognised in the profit or loss when
the liabilities are derecognised, and through the amortisation process. Any gains or losses arising from
changes in fair value of derivatives are recognised in the profit or loss. Net gains or losses on derivatives
include exchange differences.

2.

A financial liability is derecognised when the obligation under the liability is discharged, cancelled or
expired. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as a derecognition of the original liability and the recognition of a new liability, and
the difference in the respective carrying amounts is recognised in the profit or loss.
2.11
Employee benefits
Defined contribution plan
As required by law, the Company makes contributions to the Central Provident Fund (CPF) scheme in
Singapore, a defined contribution pension scheme. CPF contributions are recognised as compensation
expenses in the same period as the employment that gives rise to these contributions.
2.12
Leases
Operating leases
Leases where substantially all the risks and rewards incidental to ownership are retained by the lessors
are classified as operating leases. Operating lease payments are recognised as an expense in the profit
or loss on a straight-line basis over the lease term.
The aggregate benefit of incentives provided by the lessor is recognised as a reduction of rental expense
over the lease term on a straight-line basis.
2.13
Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company
and the revenue can be reliably measured regardless of when the payment is made. Revenue is measured
at the fair value consideration received or receivable, taking into account contractually defined terms of
payments and excluding taxes or duty. The following specific recognition criteria must also be met before
revenue is recognised:
Revenue from rendering of services is recognised upon completion and delivery of services to the
customers.
Interest income is recognised using the effective interest method.
2.14
Income taxes
(i)
Current tax
Current tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the Income Tax Authorities. The tax rates and tax laws
used to compute the amount are those that are enacted or substantively enacted at the end of
the reporting year.
Current taxes are recognised in the profit or loss except to the extent that the tax relates to items
recognised outside profit or loss, either in other comprehensive income or directly in equity.
Management periodically evaluates positions taken in the tax returns with respect to situations
in which applicable tax regulations are subject to interpretation and establishes provisions where
appropriate.
(ii)
Deferred tax
Deferred tax is provided, using the liability method, on all temporary differences at the end of
the reporting year between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes.

2.

Deferred tax assets are recognised for all deductible temporary differences, carry forward of
unused tax credits and unused tax losses, to the extent that it is probable that taxable profit
will be available against which the deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilised.
The carrying amount of deferred tax asset is reviewed at the end of each reporting year and
reduced to the extent that it is no longer probable that sufficient taxable profit will be available to
allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are reassessed at the end of each reporting year and are
recognised to the extent that it has become probable that future taxable profit will allow the
deferred tax asset to be recovered.
2.14
Income taxes (Contd)

(ii)
Deferred tax (Contd)

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in
the year when the asset is realised or the liability is settled, based on tax rates and tax laws that
have been enacted or substantively enacted at the end of each reporting year.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or
loss. Deferred tax items are recognised in correlation to the underlying transaction either in other
comprehensive income or directly in equity.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to
set off current tax assets against current tax liabilities and the deferred taxes relate to the same
taxable entity and the same taxation authority.
(iii)
Sales tax
Revenues, expenses and assets are recognised net of the amount of sales tax except:
Where the sales tax incurred on a purchase of assets or services is not recoverable from the
taxation authority, in which case the sales tax is recognised as part of the cost of acquisition
of the asset or as part of the expense item as applicable; and
Receivables and payables that are stated with the amount of sales tax included.
The net amount of sales tax recoverable from, or payable to, the taxation authority is included as
part of receivables or payables in the statement of financial position.
2.15
Foreign currency transactions

Transactions in foreign currencies are measured and recorded in Singapore dollars on initial recognition
at exchange rates approximating those ruling at the dates of transactions. Monetary assets and liabilities
denominated in foreign currencies are translated at the rate of exchange ruling at the end of the reporting
year. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated
using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair
value in foreign currency are translated using the exchange rates at the date when the fair value was
determined.
Exchange differences arising on the settlement of monetary items or on translating monetary items at the
end of the reporting year are recognised in the profit or loss.

2.

2.16
Share capital
Proceeds from issuance of ordinary shares are recognised as share capital in equity. Incremental costs
directly attributable to the issuance of ordinary shares are deducted against share capital, net of any tax
effects.
2.17
Dividend
Interim dividend is recorded in the financial year in which it is declared payable. Final dividend is recorded
in the financial year in which the dividend is approved by the shareholders.
2.18
Significant accounting judgements and estimates

The preparation of the Companys financial statements requires management to make judgements,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities,
and the disclosure of contingent liabilities at the end of each reporting year. However, uncertainty about
these assumptions and estimates could result in outcomes that could require a material adjustment to the
carrying amount of the asset or liability affected in the future periods.
Key sources of estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the
end of each reporting year, that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are discussed below. The Company based
its assumptions and estimates on parameters available when the financial statements were prepared.
Existing circumstances and assumptions about future developments, however, may change due to market
changes or circumstances arising beyond the control of the Company. Such changes are reflected in the
assumptions when they occur.
Useful lives of property, plant and equipment
The cost of property, plant and equipment is depreciated on a straight-line basis over the property, plant
and equipment estimated useful lives. Management estimates the useful lives of these property, plant and
equipment to be 3 years. Changes in the expected level of usage and technological developments could
impact the economic useful lives of these assets, therefore, future depreciation charges could be revised.
The carrying amounts of the Companys property, plant and equipment at the end of the reporting year
are disclosed in Note 7 to the financial statements.
Income taxes
Significant judgement is involved in determining the Companys provision for income taxes. There are
certain transactions and computations for which the ultimate tax determination is uncertain during the
ordinary course of business. The Company recognises liabilities for expected tax issues based on
estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different
from the amounts that were initially recognised, such differences will impact the income tax and deferred
tax provisions in the period in which such determination is made. The carrying amounts of the Companys
income tax payable and deferred tax liabilities at 31 December 2012 were $9,466 (2011 - $333) and
$6,615 (2011 - $2,869) respectively.

3.
OTHER INCOME
Interest income
SME cash grant
4.
EMPLOYEE BENEFITS EXPENSE
Salaries, bonuses and

other related costs
Employers contributions
to Central Provident Fund
2012
$
120
5,000
5,120
2012
$
2011
$
850
5,000
5,850
2011
$
287,226
242,706
17,808
$ 305,034
17,012
$ 259,718
The above includes remuneration of key management personnel as shown in Note 15(b) to the financial statements.
5.
OTHER EXPENSES
The following items have been included in arriving at other expenses:
2012
$
Advertisement
Bank charges
Entertainment
Insurance
Office rental
Professional and legal fees
Software rental
Telephone charges
Transportation
Travelling
Utilities
6.
INCOME TAX EXPENSE
Based on results for the year

Current tax
Deferred tax (Note 12)
Underprovision (Overprovision)
in respect of prior years
Current tax
Deferred tax (Note 12)
12,980
41,871
12,441
28,608
117,050
25,496
21,128
13,976
11,326
15,409
2012
$
9,466
4,128
13,594
189
(382)
$ 13,401
2011
$
3,647
1,204
19,085
12,886
102,000
8,076
19,558
18,064
12,283
7,660
12,696
2011
$
333
398
731
( 5,244)
264
$ (4,249)

6.
INCOME TAX EXPENSE (Contd)

The reconciliation between the tax expense and the product of accounting profit multiplied by the applicable
corporate tax rate for the years ended 31 December 2012 and 2011 is as follows:-
Profit before income tax

Tax expense calculated at tax
rate of 17% (2011 - 17%)
Expenses not deductible
for tax purposes
Income not subject to tax
Productivity and innovation credit
Singapore statutory stepped
income exemption
Underprovision (Overprovision)
in respect of prior years
Current tax
Deferred tax
7.
2012
2011
$ 141,836
$ 104,427
24,112
17,753
2,973
(850)
( 850)
(2,326)
(15,177)
(10,315)
(999)
189
(382)
$ 13,401
(5,244)
264
$ (4,249)
PROPERTY, PLANT AND EQUIPMENT
2012
Furniture
& fittings
$
Office
equipment
$
Renovation
$
Total
$
Cost:
At 1.1.2012
Additions
7,142
-
66,242
22,991
104,858
43,744
178,242
66,735
At 31.12.2012
7,142
89,233
148,602
244,977
At 1.1.2012
Depreciation
for the year
6,207
52,231
78,186
136,624
698
12,125
17,426
30,249
At 31.12.2012
6,905
64,356
95,612
166,873
237
$ 24,877
$ 52,990
$ 78,104
Accumulated
depreciation:
Net book value:

At 31.12.2012

7.
PROPERTY, PLANT AND EQUIPMENT (Contd)
2011
Furniture
& fittings
$
Office
equipment
$
Renovation
$
Total
$
Cost:
At 1.1.2011
Additions
6,432
710
50,454
15,788
64,850
40,008
121,736
56,506
At 31.12.2011
7,142
66,242
104,858
178,242
At 1.1.2011
Depreciation
for the year
5,490
42,261
59,446
107,197
717
9,970
18,740
29,427
At 31.12.2011
6,207
52,231
78,186
136,624
$ 935
$ 14,011
$ 26,672
$ 41,618
Accumulated
depreciation:
Net book value:

At 31.12.2011
8.
OTHER RECEIVABLES
Non-trade receivable
- Holding company (Note 1)
Interest receivable
Deposits
Prepayments
2012
$
13,676
8
69,750
7,315
$ 90,749
2011
$
2
34,000
5,250
$ 39,252
The non-trade receivable from holding company is unsecured, interest-free and repayable on demand. The amount
is to be settled in cash.
9.
CASH AND BANK BALANCES

The cash and bank balances include an amount of $148,850 (2011 - $171,703) (Note 13) received from customers
for outward remittance at year end date. The amount was subsequently remitted on 2 January 2013 (2011 - 3
January 2012).
10.
CASH AND CASH EQUIVALENTS

Cash and cash equivalents included in the statement of cash flows comprise the following amounts:
Cash and bank balances (Note 9)

Fixed deposits
2012
$
2011
$
571,851
151,467
$ 723,318
540,878
151,353
$ 692,231

10.
CASH AND CASH EQUIVALENTS (Contd)

Cash and bank balances and fixed deposits are denominated in the following currencies:
2012
$
Singapore Dollars
Taka
2011
$
550,060
648,973
$ 723,318
$ 692,231
173,258
43,258
The fixed deposits placed with a bank mature within 12 months (2011 12 months) from the end of the reporting
year and bear interest at 0.25% - 0.75% (2011 - 0.25% - 0.75%) per annum.
11.
SHARE CAPITAL
Issued and fully paid
250,000 (2011 250,000)
ordinary shares
2012
2011
$ 250,000
$ 250,000
The holder of ordinary shares is entitled to receive dividends as and when declared by the Company. All ordinary
shares of no par value carry one vote per share without restriction.
12.
DEFERRED TAX LIABILITIES
2012
2011
$ 6,615
$ 2,869
The movements in deferred tax liabilities during the year are as follows:
Accelerated
Tax
Depreciation
Total
Balance at 1.1.2011
Charged to profit or loss 2011
2,207
2,207
- Current year (Note 6)
398
398
2,869
2,869
- Current year (Note 6)
4,128
4,128
$ 6,615
$ 6,615
- Underprovision in respect of prior years (Note 6)
Charged (Credited) to profit or loss 2012

- Overprovision in respect of prior years (Note 6)
264
(382)
264
(382)

13.
TRADE AND OTHER PAYABLES
Accruals
Funds received from customers (Note 9)
14.
2012
$
2011
$
7,462
148,850
$ 156,312
6,853
171,703
$ 178,556
OPERATING LEASE COMMITMENTS

At the end of the reporting year, the Company was committed to making the following payments in respect of rental
commitments under non-cancellable operating leases:
Leases which expire:

Within one year
Later than one year but within five years
15.
2012
$
2011
$
162,000
607,500
$ 769,500
98,000
54,000
$ 152,000
RELATED PARTY TRANSACTIONS

An entity or individual is considered a related party for the purpose of these financial statements if it has the ability
(directly or indirectly) to control or exercise significant influence over the operating and financial decisions of the
Company or vice versa, or where it is subject to common control or common significant influence.
The Company has the following significant related party transactions entered with its related parties and the effect
of these transactions at terms agreed between the parties are reflected in these financial statements:(a) Transactions with related party
2012
$
Professional fee
Secretarial fee
Other expenses
9,940
1,064
2011
$
5,726
1,070
912
(b) Compensation of key management personnel
Key Executive Officer

Salary, bonus and
other related costs
16.
2012
2011
$ 196,000
$ 72,000
2012
2011
$ 98,070
DIVIDENDS
Exempt one-tier final

dividend of $0.39228 per ordinary
share in respect of year ended
31 December 2010

17.
FINANCIAL INSTRUMENTS
The Companys financial instruments comprise financial assets and liabilities. Financial assets and liabilities mainly
relate to receivables and payables which arise directly from its operations.
Financial risk management objectives and policies
The main purpose for holding or issuing financial instruments is to raise and manage the finances for the Companys
operating, investing and financing activities. There is exposure to the financial risks on the financial instruments
such as credit risk, liquidity risk, market risk comprising interest rate risk, foreign currency risk and other price risk
exposures. The management has certain practices for the management of financial risks. However, these are not
documented in formal written documents. The following guidelines are followed: All financial risk management
activities are carried out and monitored by senior management staff. All financial risk management activities are
carried out following good market practices.
The Company does not hold or issue derivative financial instruments for trading purposes or to hedge against
fluctuations in interest and foreign exchange rates.
The following sections provide details regarding the Companys exposure to the above-mentioned financial risks
and the objectives, policies and processes for the management of these risks.
Credit risk
Credit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty default on
its obligations. The Companys exposure to credit risk arises primarily from other receivables. For other financial
assets (including cash and cash equivalents), the Company minimises credit risk by dealing exclusively with high
credit rating counterparties.
The Company has significant concentration of credit risk with regards to amount due from holding company (Note
8). The Company has policies in place to ensure that transactions are entered into only with counterparties that
are of acceptable credit quality.
The maximum exposure to credit risk is represented by the net carrying amount of financial assets recorded in the
financial statements.
Other receivables that are neither past due nor impaired are creditworthy debtors with good payment record with
the Company. Cash and short-term deposits that are neither past due nor impaired are placed with or entered into
with reputable financial institutions or companies with high credit ratings and no history of default.
Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting financial obligations due to shortage
of funds. The Companys exposure to liquidity risk arises primarily from mismatches of the maturities of financial
assets and liabilities.
The Company ensures that there are adequate funds available to meet all its operational requirements.
As at the end of the reporting year, the expected contractual undiscounted cash outflows of financial liabilities are
due in less than a year.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Companys financial instruments will
fluctuate because of changes in market interest rates. The Company has no exposure to interest rate risks as
interest arising primarily from fixed deposits is fixed and does not fluctuate with changes in market interest rate.

17.
FINANCIAL INSTRUMENTS (Contd)

Financial risk management objectives and policies (contd)
Foreign currency risk
The Companys remittance activities are transacted in Taka and United States dollars. Exchange rate movements
in Taka, the United States dollars and the Singapore dollars, the Companys functional currency, exposed the
Company to foreign currency risk.
The Company does not use derivative financial instruments to hedge against the volatility associated with foreign
currency transactions.
Sensitivity analysis: The effect is insignificant.
Equity price risk
The Company has no exposure to equity price risk.
Capital risk management
The Companys objectives when managing capital are to safeguard the Companys ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal
capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The total capital of the Company as at the end of the reporting year is the Total equity as presented on the
statement of financial position.
17.
FINANCIAL INSTRUMENTS (Contd)

Financial risk management objectives and policies (Contd)
Capital risk management (Contd)
The Company is not subject to any externally imposed capital requirements.
18.
FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value of a financial instrument is the amount at which the instrument could be exchanged or settled
between knowledgeable and willing parties in an arms length transaction, other than in a forced or liquidation sale.
Financial instruments whose carrying amounts approximate fair values
Management has determined that the carrying amounts of cash and bank balances, fixed deposits, current other
receivables and current trade and other payables, based on their notional amounts, reasonably approximate their
fair values because these are mostly short term in nature.
19.
AUTHORISATION OF FINANCIAL STATEMENTS

The financial statements for the year ended 31 December 2012 were authorised for issue in accordance with a
resolution of the directors on 18 February 2013.
Report of the Directors

The directors present their report and financial statements for the year ended 31 December 2012.
The principal activity of the company continued to be that of providing remittance service.
Directors
The following directors have held office since 1 January 2012:
Mr. Nafis Sikder
(Resigned 27 December 2012)
Mr. Isbahul Bar Chowdhury
(Resigned 27 December 2012)
Prof. Ainun Nishat
(Appointed 27 December 2012)

Auditors
Reddy Siddiqui & Kabani were appointed auditors to the Company and have expressed their willingness to accept
re-appointment.
Statement of directors responsibilities
The directors are responsible for preparing the Directors Report and the financial statements in accordance with
applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors
have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting
Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not
approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the
company and of the profit or loss of the company for that period. In preparing these financial statements, the directors
are required to:
-
select suitable accounting policies and then apply them consistently;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company
make judgements and accounting estimates that are reasonable and prudent;
will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the companys
transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them
to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding
the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other
irregularities.
Statement of disclosure to auditors
So far as the directors are aware, there is no relevant audit information of which the companys auditors are unaware.
Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order
to make themselves aware of all relevant audit information and to establish that the companys auditors are aware
of that information.

Status of the Company
PBL Exchange (UK) Limited was incorporated as private limited company with Companies House of England and Wales
under registration no. 07081093 on 19 November 2009. The company is a wholly owned subsidiary of Prime Bank Limited,
incorporated in Bangladesh which is also the companys ultimate holding company. Earlier on 25 August 2009, Prime
Bank Limited got permission from Bangladesh Bank for opening a fully owned subsidiary in UK.PBL Exchange obtained
Certificate of Registration for Money Laundering Regulations on 13 April 2010 issued by HM Customs and Excise.
The company got registration from Financial Services Authority (FSA) on 14 May 2010 as Small Payment Institution
to carry out Money Service Business under Payment Services Regulations 2009. The Company commenced its
operation on 02 August 2010 with three Branches located at Brick Lane of London, Coventry Road of Birmingham and
North Oldham of Manchester. The registered office is located at 16 Brick Lane, London E1 6RF.
This report has been prepared in accordance with the special provisions relating to small companies within Part 15
of the Companies Act 2006.
On behalf of the board

Director
February 18, 2013

to the Members of PBL Exchange (Uk) Limited
We have audited the financial statements of PBL EXCHANGE (UK) LIMITED for the year ended 31 December
2012 set out on pages 5 to 12. The financial reporting framework that has been applied in their preparation is
applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the companys members, as a body, in accordance with Chapter 3 of Part 16 of the Companies
Act 2006. Our audit work has been undertaken so that we might state to the companys members those matters
we are required to state to them in an auditors report and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the company and the companys members as a
body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the Directors Responsibilities Statement set out on pages 1 - 2, the directors are responsible
for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility
is to audit the financial statements in accordance with applicable law and International Standards on Auditing (UK and
Ireland). Those standards require us to comply with the Auditing Practices Boards Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give
reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or
error. This includes an assessment of: whether the accounting policies are appropriate to the companys circumstances
and have been consistently applied and adequately disclosed; the reasonableness of significant accounting
estimates made by the directors; and the overall presentation of the financial statements.
Opinion on financial statements
In our opinion the financial statements:

-
give a true and fair view of the state of the companys affairs as at 31 December 2012 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Directors Report for the financial year for which the financial statements
are prepared is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to
you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received
from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements and the directors report in accordance with the small
companies regime.
Seema Siddiqui (Senior Statutory Auditor)

for and on behalf of Reddy Siddiqui & Kabani
Statutory Auditor
February 18, 2013

Park View
183-189 The Vale
Acton
London
W3 7RW

Note
Turnover
Administrative expenses
2012
2011
265,590
162,501
(381,378)
(312,591)
Loss on ordinary activities before taxation
(115,788)
(150,090)
Tax on loss on ordinary activities
Loss for the year
(115,788)
(150,090)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There are no recognised gains and losses other than those passing through the profit and loss account.
Balance Sheet
2011
2012
Notes
Fixed assets
Tangible assets
146,209
134,948
Current assets
Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year
15,000
51,568
188,503
85,129
203,503
136,697
(202,463)
(58,608)
Net current assets

Total assets less current liabilities
1,040
78,089
147,249
213,037
Capital and reserves

Called up share capital
500,000
450,000
Profit and loss account
(352,751)
(236,963)
Shareholders funds
147,249
213,037
These financial statements have been prepared in accordance with the provisions applicable to companies subject to
the small companies regime within Part 15 of the Companies Act 2006.
Approved by the Board and authorised for issue on 18 February 2013
Md. Ehsan Khasru

Director

Director
Cash Flow Statement

2011
2012
Net cash inflow/(outflow) from operating activities
80,382
(104,325)
Capital expenditure
Payments to acquire tangible assets
(27,008)
Net cash outflow for capital expenditure

Net cash inflow/(outflow) before management of
liquid resources and financing
(7,133)
(27,008)
(7,133)
53,374
(111,458)
Financing
Issue of ordinary share capital
Net cash inflow from financing
Increase in cash in the year
50,000
150,000
50,000
150,000
103,374
38,542
Notes to the Cash Flow Statement

1
Reconciliation of operating loss to net cash inflow/(outflow) from

operating activities
2012
2011
(115,788)
(150,090)
Depreciation of tangible assets
15,747
17,888
Decrease/(increase) in debtors
36,568
(12,130)
143,855
40,007
80,382
(104,325)
Operating loss
Increase in creditors within one year

Net cash inflow/(outflow) from operating activities
Analysis of net funds
1 January
2012
Cash flow
Other noncash changes
31 December
2012
85,129
103,374
188,503
85,129
103,374
188,503
2012
2011
Increase in cash in the year
103,374
38,542
Movement in net funds in the year
103,374
38,542
Opening net funds
85,129
46,587
Closing net funds
188,503
85,129
Net cash:
Cash at bank and in hand
Bank deposits
Net funds
Reconciliation of net cash flow to movement in net fund

1
Accounting policies
1.1
Accounting convention
The financial statements are prepared under the historical cost convention.
1.2
Compliance with accounting standards

The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards
(United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except
as otherwise stated).
1.3
Turnover
Turnover represents amounts received as commission from customers.
1.4
Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the
cost less estimated residual value of each asset over its expected useful life, as follows:
Land and buildings Leasehold
Over the life of the Lease
Fixtures, fittings & equipment
25% straight line
Computer equipment
1.5
25% srtaight line
Foreign Currency Transactions

Transactions in foreign currency are measured and recorded in Sterling by use of the exchange rate in effect at
the date of transaction. At each statement of financial position date, recorded monetary balances that are
denominated in a foreign currency are adjusted to reflect the rate at the statement of financial position date. All
realized and unrealized exchange adjustment gains and losses are taken to the statement of movements on profit
and loss account.
2
Operating loss
2012
2011
15,747
17,888
2012
2011
(115,788)
(150,090)
Operating loss is stated after charging:

Depreciation of tangible assets
Taxation
Total current tax
Factors affecting the tax charge for the year
Loss on ordinary activities before taxation
Loss on ordinary activities before taxation multiplied by standard rate of UK
corporation tax of 0.00% (2011 - 0.00%)
Current tax charge for the year
On the basis of these financial statements no provision has been made for corporation tax.

4
Tangible fixed assets
Land and
buildings
Plant and
machinery etc
146,323
13,582
Total
Cost
At 1 January 2012
Additions
159,905
27,009
27,009
173,332
13,582
186,914
At 1 January 2012
20,410
4,548
24,958
Charge for the year
12,308
3,439
15,747
At 31 December 2012
32,718
7,987
40,705
At 31 December 2012
140,614
5,595
146,209
At 31 December 2011
125,914
9,034
134,948
2012
2011
15,000
51,568
2012
2011
At 31 December 2012
Depreciation
Net book value
Debtors
Other debtor
Creditors: amounts falling due within one year
Taxation and social security

Other creditors
6,873
2,727
195,590
55,881
202,463
58,608
The cash and bank balances include an amount 185,672 received from customer for outward remittance
at period end date. The amount was subsequently remitted on 02 January 2013. The payable amount is included
within the balance of other creditors.
7
Share capital
Allotted, called up and fully paid
500,000 Ordinary of 1 each
2012
2011
500,000
450,000

8
Statement of movements on profit and loss account
Profit and
loss account
Balance at 1 January 2012
(236,963)
(115,788)
Loss for the year
Balance at 31 December 2012
Reconciliation of movements in shareholders funds
Loss for the financial year

Proceeds from issue of shares
10
(352,751)
2012
2011
(115,788)
(150,090)
50,000
150,000
Net depletion in shareholders funds
(65,788)
(90)
Opening shareholders funds
213,037
213,127
Closing shareholders funds
147,249
213,037
Control
The ultimate controlling party is Prime Bank Limited which is a public limited company registered in
Bangladesh.

The Directors present their annual report and the audited financial statements for the year ended 31st December,
2012.
PBL Finance (Hong Kong) Limited (the Company) is a company incorporated and domiciled in Hong Kong and has
its registered office and principal place of business at Room 608, 6th Floor, Admiralty Centre, Tower Two, 18 Harcourt
Road, Hong Kong. The principal activities of the Company are money lending in Hong Kong and providing the following
services:-
Advising of documentary credits;
Endorsing confirmation to the credit upon request of issuing bank;
Negotiating/discounting of documents; and
Remittance business.
Results and Appropriations

The profit of the Company for the year ended 31st December, 2012 and the state of the Companys affairs as at that date
are set out in the Companys financial statements on pages 5 to 15.
The directors do not recommend the payment of a dividend for the year ended 31st December, 2012.
Details of the movements during the year in the property, plant and equipment of the Company are set out in note 10 to the
Share Capital and Reserves
Details of the movement during the year in the share capital of the Company are set out in note 12 to the Companys
There were no movements in reserves except for changes to retained earnings which arose from profit or loss.
Directors
The directors of the Company during the year and up to the date of this report were:
Azam J CHOWDHURY
Capt. Imam Anwar HOSSAIN
Md. Ehsan KHASRU
Ainun NISHAT
(Appointed on 27th December, 2012)
There being no provision in the Companys articles of association in connection with the retirement of directors by rotation,
all existing directors continue in office for the following year.
The Company did not enter into any contract, other than the contracts of service with the directors or any person engaged
in the full-time employment of the Company, whereby any individual, firm or body corporate undertakes the management
and administration of the whole, or any substantial part of any business of the Company.

Arrangements to Purchase Shares or Debentures
At no time during the year was the Company or its holding company a party to any arrangements to enable the directors of
the Company to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body
corporate.
Directors Interests
Details of directors interest during the year are set out in note 13 to the financial statements.
Apart from the above, there were no contract of significance to which the Company or its holding company was a party and
in which a director of the Company had a material interest, whether directly or indirectly, subsisted at the end of the year or
at any time during the year.
Auditors
A resolution will be submitted to the annual general meeting to re-appoint T. O. Yip & Co. Limited as auditor of the
Company.
On behalf of the Board
Chairman
Date : 18th February, 2013

to the Shareholders of PBL Finance (Hong Kong) Limited
(Incorporated in Hong Kong with limited liability)
We have audited the financial statements of PBL Finance (Hong Kong) Limited (the Company) set out on pages 5 to
15, which comprise the statement of financial position as at 31st December, 2012, and statement of income and retained
earnings and statement of cash flows for the year then ended, and a summary of significant accounting policies and other
explanatory information.
Directors Responsibility for the Financial Statements
The directors are responsible for the preparation of financial statements that give a true and fair view in accordance
with the Hong Kong Financial Reporting Standard for Private Entities issued by the Hong Kong Institute of Certified
Public Accountants and the Hong Kong Companies Ordinance, and for such internal control as the directors determine is
or error.
Our responsibility is to express an opinion on these financial statements based on our audit. Our report is made solely to
you, as a body, in accordance with Section 141 of the Hong Kong Companies Ordinance, and for no other purpose. We do
not assume responsibility toward or accept liability to any other person for the contents of this report.
We conducted our audit in accordance with Hong Kong Standards on Auditing issued by the Hong Kong Institute of
Certified Public Accountants. Those standards require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entitys preparation of financial statements that give a true and fair view in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation
of the financial statements.
Opinion
In our opinion, the financial statements give a true and fair view of the state of the Companys affairs as at 31st December,
2012, and of its profit and cash flows for the year then ended in accordance with the Hong Kong Financial Reporting
Standard for Private Entities and have been properly prepared in accordance with the Hong Kong Companies Ordinance.
T. O. Yip & Co. Limited

Certified Public Accountants (Practising)
Yip Tak On, George
Practising Certificate Number : P00301
Date : 18th February, 2013
Statement of Income and Retained Earnings

for the year ended 31st December, 2012
Notes
Interest income
Interest expenses
Net interest income

Total operating income

Staff costs
Depreciation
10
Other operating expenses

Total operating expenses
Year ended
Period ended
31.12.2012
31.12.2011
HK$
HK$
6,407,656
1,417,470
(2,097,317)
(340,936)
4,310,339
1,076,534
3,556,575
345,045
7,866,914
1,421,579
(1,863,731)
(555,713)
(28,030)
(5,516)
(809,311)
(485,487)
(2,701,072)
(1,046,716)
Profit before taxation
5,165,842
374,863
Income tax expense
(845,043)
(60,038)
4,320,799
314,825
314,825
4,635,624
314,825
Profit for the year/period

Retained earnings at start of year/period
Retained earnings at end of year/period

as at 31st December, 2012
Notes
2012
2011
HK$
HK$
Non-current assets
10
93,620
48,776
118,242,546
54,680,501
168,835
109,200
1,181,256
1,449,532
119,592,637
56,239,233
Current assets
Discounted bills receivable
Deposits, prepayments and other receivables
Current liabilities
Accrued liabilities and other payables
Amount due to ultimate holding company
11
Income tax payable
Net current assets
1,022,952
274,986
110,190,600
53,408,160
905,081
60,038
112,118,633
53,743,184
7,474,004
2,496,049
7,567,624
2,544,825
2,932,000
2,230,000
4,635,624
314,825
7,567,624
2,544,825
Equity
Share capital
Retained earnings
12
The financial statements on pages 5 to 15 were approved and authorised for issue by the Board of Directors on 18th
February, 2013 and are signed on its behalf by:
Director
Director
Notes to Statement of Cash Flows

Notes
Year ended
Period ended
HK$
HK$
31.12.2012
31.12.2011
Operating activities
Profit before taxation
5,165,842
374,863
28,030
5,516
5,193,872
380,379
(63,562,045)
(54,680,501)
Increase in deposits, prepayments and other receivables
(59,635)
(109,200)
Increase in accrued liabilities and other payables
747,966
274,986
56,782,440
53,408,160
(897,402)
(726,176)
(72,874)
(54,292)
(72,874)
(54,292)
702,000
2,230,000
702,000
2,230,000
Net (decrease)/increase in cash and cash equivalents
(268,276)
1,449,532
Cash and cash equivalents at start of year/period
1,449,532
Cash and cash equivalents at end of year/period
1,181,256
1,449,532
1,181,256
1,449,532
Adjustments for :
Depreciation
10
Operating profit before changes in working capital

Increase in discounted bills receivable
Increase in amount due to ultimate holding company

Net cash used in operating activities
Investing activities
10

Financing activities
Issue of shares
Cash generated from financing activities
12
Analysis of cash and cash equivalents

Accounting Policies and Explanatory Notes to the Financial Statements

1.
General Information
PBL Finance (Hong Kong) Limited (the Company) is a limited company incorporated in Hong Kong. The address
of its registered office and principal place of business is Room 608, 6th Floor, Admiralty Centre, Tower Two, 18
Harcourt Road, Hong Kong. The principal activities of the Company are money lending in Hong Kong and provides
the following services:-
2.
Advising of documentary credits;

Endorsing confirmation to the credit upon request of issuing bank;
Negotiating/discounting of documents; and
Remittance business.
Basis of Preparation and Accounting Policies

These financial statements have been prepared in accordance with the Hong Kong Financial Reporting Standard
for Private Entities (HKFRS for Private Entities) issued by the Hong Kong Institute of Certified Public Accountants
and the requirements of the Hong Kong Companies Ordinance. They have been prepared under the historical cost
convention.
(a) Property, plant and equipment
Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated
impairment losses.
Depreciation is charged so as to allocate the cost of assets less their residual values over their estimated useful
lives, using the straight-line method. The following annual rates are used for the depreciation of property, plant and
equipment:
Office equipment
33 1/3%
33 1/3%
If there is an indication that there has been a significant change in the depreciation rate, useful life or residual value
of an asset, the depreciation of that asset is revised prospectively to reflect the new expectations.
An assets carrying amount is written down immediately to its recoverable amount if the assets carrying amount is
greater than its estimated recoverable amount.
(b) Trade and other receivables
Trade and other receivables are recognised initially at the transaction price. They are subsequently measured at
amortised cost using the effective interest method, less provision for impairment. A provision for impairment of trade
receivables is established when there is objective evidence that the Company will not be able to collect all amounts
due according to the original terms of the receivables.
(c) Cash and cash equivalents
Cash and cash equivalents includes cash on hand, demand deposits and other short-term highly liquid investments
with original maturities of three months or less. Bank overdraft is shown within borrowings in current liabilities on the
statement of financial position.
(d) Trade and other payables
Trade and other payables are recognised initially at the transaction price and subsequently measured at amortised
cost using the effective interest method.

2.
Basis of Preparation and Accounting Policies (contd)

(e) Borrowings
Borrowings are recognised initially at the transaction price and are subsequently stated at amortised cost. Borrowings
are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for
at least twelve months after the reporting date.
Interest expense is recognised on the basis of the effective interest method and is included in finance costs.
(f) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and is shown net of discounts,
rebates, returns, sales-related taxes.
Revenue is recognised in statement of income and retained earnings provided it is probable that the economic benefits
will flow to the Company and the revenue and costs, if applicable, can be measured reliably, as follows:(i)
from the rendering of confirming and advising, checking, telex, postage and other services, when the services
are rendered; and
(ii)
interest income; on an accrual basis using the effective interest method by applying the rate that discounts the
estimated future cash receipts through the expected life of the financial instrument to the net carrying amount
of the financial asset.
(g) Borrowing costs

All borrowing costs are recognised in profit or loss in the period in which they are incurred.
(h) Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the
statement of comprehensive income and retained earnings because of items of income or expense that are taxable
or deductible in other periods and items that are never taxable or deductible. The Companys liability for current tax is
calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases using in the computation of taxable profit. Deferred tax liabilities
are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all
deductible temporary differences to the extent that is probable that taxable profits will be available against which those
deductible temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at the reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability
is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted at the
reporting date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from
the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and
liabilities.

2.
Basis of Preparation and Accounting Policies (contd)

(i) Foreign currency translation -- transaction and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and
from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies
are recognised in statement of income and retained earnings.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in statement
of income and retained earnings within finance costs. All other foreign exchange gains and losses are presented in
statement of income within other operating expenses.
(j) Dividend distribution
Dividend distribution to the Companys shareholders is recognised as a liability in the period in which the dividends are
approved by the Companys shareholders.
(k) Related parties
For the purpose of these financial statements, related party includes a person and entity as defined below:
(i)
A person or a close member of that persons family is related to the Company if that person:
(a)
(b)
(c)
(ii)
is a member of the key management personnel of the Company or of a parent of the Company;
has control over the Company; or
has joint control or significant influence over the reporting entity or has significant voting power in it.
An entity is related to the Company if any of the following conditions applies:

(a)
(b)
(c)
(d)
(e)
(f)
(g)
the entity the Company are members of the same group (which means that each parent, subsidiary and
fellow subsidiary is related to the others).
either entity is an associate or joint venture of the other entity (or of a member of a group of which the other
entity is a member).
both entities are joint ventures of a third entity.
either entity is a joint venture of a third entity and the other entity is an associate of the third entity.
the entity is a post-employment benefit plan for the benefit of employees of either the Company or an
entity related to the Company. If the reporting entity is itself such a plan, the sponsoring employers are also
related to the plan.
the entity is controlled or jointly controlled by a person identified in (i).
a person identified in (i)(a) has significant voting power in the entity.
(l) Impairment of non-financial assets

At each reporting date, property, plant and equipment is reviewed to determine whether there is any indication that
such has suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of
any affected asset (or group of related assets) is estimated and compared with its carrying amount. If an estimated
recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment
loss is recognised immediately in profit or loss.
If an impairment loss subsequently reverses, the carrying amount of the asset (or group of related assets) is increased
to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined
had no impairment loss been recognised for the asset (group of related assets) in prior years. A reversal of an
impairment loss is recognised immediately in profit or loss.
(m) Operating leases
Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the term of the
relevant lease.

3.
Key Sources of Estimation Uncertainty

Property, plant and equipment and depreciation
The Company determines the estimated useful lives and related depreciation charges for the Companys property,
plant and equipment. This estimate is based on the historical experience of the actual useful lives of property, plant and
equipment of similar nature and functions. The Company will revise the depreciation charge where useful lives are different
to those previously estimated, or it will write-off or write-down technically obsolete or non-strategic assets that have been
abandoned or sold.
4.
Interest Expenses
Year ended
31.12.2012
HK$
Bank charges and interest

Interest on amount due to ultimate holding company
5.
Other Operating Income
7,417
2,089,900
2,097,317
Year ended
31.12.2012
HK$
Advising commission income

Handling and checking fee
Other charges and commission fee
Other income
6.
Period ended
31.12.2011
HK$
85
340,851
340,936
Period ended
31.12.2011
HK$
410,906
1,698,793
1,071,246
375,630
3,556,575
43,449
56,127
244,179
1,290
345,045
Directors Remuneration
Directors remuneration disclosed pursuant to Section 161 of the Hong Kong Companies Ordinance is as follows :Year ended
31.12.2012
HK$
Fees
Other emoluments
7.
Period ended
31.12.2011
HK$
-
Employee Benefit Obligations

The Company operates a Mandatory Provident Fund Scheme (the MPF scheme) under the Hong Kong Mandatory
Provident Fund Schemes Ordinance for employees employed under the jurisdiction of the Hong Kong Employment
Ordinance and not previously covered by the defined benefit retirement plan. The MPF scheme is a defined contribution
retirement plan administered by independent trustees. Under the MPF scheme, the employer and its employees are each
required to make contributions to the plan at 5% of the employees relevant income, subject to a cap of monthly relevant
income of HK$20,000 (HK$25,000 effective from 1st June, 2012). Contributions to the plan vest immediately.
8.
Profit Before Taxation

The following items have been recognised as expenses in determining profit before tax:
Year ended
31.12.2012
HK$
Auditors remuneration
Depreciation
18,000
28,030
Period ended
31.12.2011
HK$
15,000
5,516

9.
Income Tax Expense

Taxation in the statement of income and retained earnings represents:
Year ended
31.12.2012
HK$
Current tax Hong Kong Profits Tax

Provision for the year
845,043
Period ended
31.12.2011
HK$
60,038
The provision for Hong Kong Profits Tax is calculated at 16.5% (2011 : 16.5%) of the estimated assessable profit for the year.
No deferred tax has been provided as the effect of all temporary difference is immaterial.
10.
Cost
Office
equipment
HK$
At 31st December, 2011

Additions
Accumulated depreciation and impairment
Charge for the year
Carrying amount
11.
Furniture
HK$
Total
HK$
38,292
72,874
111,166
16,000
16,000
54,292
72,874
127,166
3,740
22,702
26,442
1,776
5,328
7,104
5,516
28,030
33,546
84,724
34,552
8,896
14,224
93,620
48,776
Amount Due To Ultimate Holding Company

The amount due to ultimate holding company (Note 15) is unsecured, interest-bearing at agreed premium over LIBOR and
repayable within agreed maturity.
12.
Share Capital
2012
HK$
2011
HK$
Authorised:3,500,000 ordinary shares of HK$1 each
3,500,000
3,500,000
Issued and fully paid :2,932,000 (2011: 2,230,000) ordinary shares of HK$1 each
2,932,000
2,230,000
Pursuant to an ordinary resolution passed on 3rd September, 2012 the issued share capital of the Company was increased
from HK$2,230,000 to HK$2,932,000 by the issue of 702,000 ordinary shares of HK$1 each for cash at par.
13.
Related Party Transactions

In addition to the transactions, balances and guarantees disclosed elsewhere in these financial statements, the Company
has the following material related party transactions during the year:2012
2011
HK$
HK$
Transactions and balances with ultimate holding company:Discounted bills receivable
Bank balance
Interest payable, included in accrued liabilities and other payables
Interest expenses
64,689,036
1,148,843
852,089
35,786,086
110,114
257,986
2,089,900
340,851

14.
Operating Lease Commitments

The Company rents an office premise and a director quarter under operating leases which cover a minimum period of
fourteen months, with fixed rentals over the same period.
Year ended
Period ended
31.12.2012
31.12.2011
HK$
HK$
Minimum lease payments under operating leases recognised as
an expense during the year/period
480,000
320,000
At the year-end, the Company had outstanding commitments under non-cancellable operating leases that fall due as
follows:
2012
2011
HK$
HK$
Within one year
In the second to fifth years, inclusive
15.
180,000
-
240,000
-
180,000
240,000
Parent And Ultimate Holding Company

At 31st December, 2012, the directors consider the immediate parent and ultimate controlling party of the Company to be
Prime Bank Limited, which is incorporated in Bangladesh. This entity produces financial statements available for public
use.
Opening of Daulatpur Branch, Khulna
PBL MD receiving The Daily Star-DHL

Bangladesh Business Award-2011
Award wining Managers- at the Annual

Business Conference
Opening of Islampur branch, Sylhet.
Opening of Bhatiary Branch, Chittagong
PBL receiving Bizz 2012- Inspirational

Company Award at Barcelona, Spain.
Opening of Brahmanbaria
branch
Opening of 107th ATM Booth at Rupnagar

Residential Area, Mirpur.
The 17th Annual General Meeting of PBL in

progress.
PBL receiving 12th ICAB National

Award-2011
Opening of Shibpur branch, Narsingdi.
Opening of Boalmari Branch, Faridpur.
Opening of Karnafuli EPZ (KEPZ) branch,

Chittagong.
PBL receiving Strong Rated Bank

Award 2012
Opening of Mohadevpur Branch, Naogaon
Branch Network
Dhaka Division
Asad Gate Branch

2/6, Sir Sayed Road, Mohammadpur
(Mirpur Road), Dhaka.
PABX: (02) 9144646, Direct: (02)
9136214, 8142106, 8142134 Cell:
01713-037359 (HOB). 01714-039547 (OM)
Fax : (02) 9125400
Ashulia Branch
Sharif Mansion (1st floor) Diakhali, Jamgora
Bazar, P.S. Ashulia, Dist. : Dhaka
PABX : (02) 7788290, 7788326, Direct : (02)
7788325, Cell : 01713-409183 (HOB),
01755541288 (OM) Fax : (02) 7788291
Adamjee EPZ Branch, Narayanganj
Adamjee EPZ Holding # 4, Siddirganj,
Narayanganj
Tel : (02) 7692025-26, Direct (02) 7692024,
Cell : 01730-781187 (HOB), 01715-416860 (OM)
Fax : (02) 7692027
Bangshal Branch
43/44, Malitola, Northsouth Road,
Bangshal, Dhaka-1100
PABX : (02) 9561501,
Direct : (02) 9556635, 7113310, 7123480,
Cell : 01713-019530 (HOB) 01711628483 (OM), Fax : (02) 7175185
Banani Branch
House # 62, Block E, Kemal Ataturk
Avenue Banani Dhaka-1212
PABX : (02) 8815754, 9889868, 8854988,
Direct : (02) 8852899, 8850329, 8836890,
Cell- 01755-630326 (HOB), 01711- 824242
(OM), Fax:(02) 8853616
Bashundhara Branch
Plot # 236, Block B Bashundhara R/A, Dhaka
PABX : (02) 8415276 , 8845213, Direct :
(02) 8845215, Cell : 01730-031819 (HOB),
01730- 031869 (OM)
Fax : (02) 8845214
Bijoy Nagar Branch
Akram Tower (1st Floor) 15/5 Bijoy Nagar, Dhaka
PABX : (02) 9335732 ,9335762, Direct :
(02) 9334123,
Cell : 01711-439003 (HOB) 01730031818 (OM)
Fax : (02) 9332639
Bhairab Bazar Branch, Kishoreganj
181, Tin Potty Road, Bhairab
Pawrashava, Bhairab, Kishoregonj
PABX : 02-9470723, 9470771, Direct :
02-9470733, Cell : 01714-038598
(HOB), 0173-0066337 (OM)
Fax : 02-9470755
Banasree Branch
Arcadia (1st Floor), Plot # 14, Block-C
Banasree Main Road, Rampura, Dhaka
PABX:(02) 8399548, Direct : 02-8399591
Cell: 01730076120(HOB), 017127699 (OM)
FAX:(02) 8399547
Bashaboo Branch
Shapnil (2nd & 3rd Floor), 60-61 South
Bashaboo, Dhaka
PABX : (02) 7219201, 7219205
Direct : (02) 7219206, Cell: 01730-373920
(HOB),01720-038505(OM)
Fax : (02) 7219205
Gareb-E-Newaz Avenue Branch

Holding # 1, Gareb-E-Newaz Avenue
Sector # 11, Uttara R/A, Dhaka
PABX : (02) 8950997, 8921161
Cell : 0173-03-12515
(HOB), 0173-03-12517 (OM)
Fax : (02) 8931687
Boalmari Branch
Ajhar Tower, 503 Station Road,
Boalmari, Faridpur
PABX : (06324) 56132, Direct : (06324)
56130, Cell : 01755-607991(HOB)
FAX : (06324) 56139
Gulshan Branch
Plot # 01, Block-CEN(H), Road # 109
Gulshan Avenue (Near Wonder Land),
Dhaka-1212
PABX : (02) 9890898, 9886171,
8815885, Direct : (02) 9862937, Cell :
01714-039546 (HOB) 01711-628187 (OM),
Fax : (02) 8820276
Dhanmondi Branch
Mamtaz Plaza (1st Floor) House # 7,
Road # 4, Dhanmondi R/A, Dhaka
PABX : (02) 8622304, 8621556,
Direct : (02) 9662704, 8621557
Cell : 0173-00-61489 (HOB), 01713-069632
(OM) . Fax : (02) 9662705
Damudya Branch
Holding # 264 (1st & 2nd floor), Sadar Road
P.S: Damudya, Dist: Shariatpur
PABX : (06023) 56396,
Cell : 0173 00 96615 (HOB)
Fax : (06023) 56390
Dhaka Club Booth
Dhaka Club, Ramna, Dhaka-1000
(02) 8627138, 8619180-4/129,
01711-882230
Elephant Road Branch
Ananta Plaza, 136,Elephant Road
Dhaka-1205
PABX : (02) 9662776-7, 8622592,
Direct : (02) 9673783, 9673786,
Cell : 01713-080386 (HOB) , 01730
-016896 (OM)
Fax (02) 8622591
Foreign Exchange Branch
Al-Haj Mansion, 82, Motijheel C/A
Dhaka-1000
PABX : (02) 9551682,9564976,
Direct : (02) 7161146, 9570751,
7162679, Cell : 01713-279701 (HOB)
01711-836618 (OM), 01711-809295
Fax : (02) 9553078
Faridpur Branch
KMA Arcadia (1st floor), Holding #
60/116/A, Moirapotty, Faridpur
PABX : (0631) 65133,
Cell : 0173 03 27673 (HOB),
Fax : (0631) 65128
Ganakbari Branch
Somsher Plaza (1st floor), (Opposite
Dhaka EPZ), Balibhadra Bazar Bas
stand, Dhamsona, Ganakbari Savar, Dhaka-1340
PABX : (02) 7788100,7788897,
Direct : (02) 7788896, Cell : 01711628192 (HOB), 01714-071123 (OM)
Fax : (02) 7789378
Hemayetpur Branch
Madhu Bhaban, Hemayetpur, Saver, Dhaka
Cell : 0173-07-81154 (HOB), 0173071175 (OM),
Tele Fax : (02) 7742096
Islamic Banking Branch, Dilkusha
19, Dilkusha C/A Dhaka-1000
PABX : (02) 9567227, 7169071,
7165796, 7160859, 9514928, 7160859
Direct: (02) 7169401, Cell : 01711401248 (HOB), 01714-014889 (OM)
Fax : (02) 9567228
Islamic Banking Branch, Mirpur
Mamoni Tower, 1244 East Monipur
Begum Royeya Sarani, Mirpur, Dhaka-1216
PABX : (02) 8058371,8057682,
Direct : (02) 8057681,
Cell: 01730-031817 (HOB), 01714098072 (OM)
Fax : (02) 8057441
Ibrahimpur Branch
Sumona Sahadat Center, 80, Ibrahimpur
Kafrul, Dhaka-1206
PABX : (02) 8872503,8872423,
Direct : (02) 8872557,
Cell: 01755-582852 (HOB), 01755630320(OM)
Fax : (02) 8872501
Joydevpur Chowrasta Branch
Shapla Masnion (1st Floor)
Joydevpur Chowrasta, P.O. Chandana
Dhaka-Tangail Road Gazipur
PABX : (02) 9264103, 9264135,
Direct : (02) 9264142, 9264097,
Cell : 01713-068094 (HOB),
01730034863 (OM), Tele-Fax : (02)
9264097
Joypara Branch
Azahar Ali Mozahar Ali Shopping
Complex, Latakhola, Joypara, Dohar,
Dhaka
PABX : (02)7768054,(02)7768053,
Direct : (02)7768055, Cell : 0173 00 34861
(HOB), Cell : 0173 00 34862 (OM)
Fax : 02-7768052
Jatrabari Branch
Nur Tower, 76/Ga, Bibir Bagicha
North Jatrabari, Dhaka-1204
PABX : (02) 7552158, 7552178,
Cell : 01730 -317440 (HOB), 01730-338785 (OM)
Tele-Fax : (02) 7552169
Jamalpur Branch
Jibon Mantion, Station Road, Jamalpur
PABX : (0981) 65361, Direct (0981)
65360, Cell : 01755524165 (HOB)
01755-630325(OM),
Tele-Fax : (0981) 65362
Kawran Bazar Branch,
54, Kawran Bazar C/A., Dhaka-1215
PABX : (02) 91242967, Direct : (02)
8157288, 9145394, 9145397,
Cell : 01713-069926 (HOB),
01711-628188 (OM),
Fax : (02) 9129004
Kishoreganj Branch
Shamsuddin Bhuiyan Plaza,
Teripotty, Kishoreganj
Motijheel Branch
Adamjee Court Annexe Building-2
119-120, Motijheel C/A, Dhaka-1000
PABX: (02) 9567265, Direct: (02)
7175491, 9567225, 9559876, 9515341,
7175492, 9562982, Cell: 01714-015533
(HOB), 01714-048548 (OM)
Fax: (02) 9567223
Moulvi Bazar Branch
77/4, Moulvi Bazar, Dhaka-1100
PABX : (02) 7311017, 7313407,
Direct : (02) 7318305,
Cell : 01711-824628
(HOB), 01711-628481 (OM)
Tele-Fax : (02) 7318305
Mohakhali Branch
69,Mohakhali C/A. Dhaka-1212
PABX : (02)9882291,8826483,
8817210, Direct :8850302,9887188,
Cell: : 01730-320022 (HOB) . 01730320023(OM),
Fax : (02) 9886052
Mouchak Branch
Manhattan Tower (1st Floor), 83, Siddaswari Circular Road, Malibagh, Dhaka-1217
PABX : (02) 8352832, (02) 9347757,
(02) 9347757, Direct : (02) 8352831,
Cell : 01714-133334 (HOB)
01730-034864(MO),
Fax : (02) 9338883
Mirpur-1 Branch
Rabiul Plaza (1st floor), Plot # Shee1/Kha, Section # 1, Mirpur, Dhaka-1216
PABX : (02) 8034590,
Direct : (02) 8034126, 8054007,
Cell : 01819-216966
(HOB),01713255775(MO)
Fax : (02) 8034591
Madhabdi Branch
Plot # 17, Madhabdi Bazar Narsingdi-1604
PABX : (06257) 56682, Cell : 01711593583 (HOB), 01711-431364 (OM)
Fax : (06257) 56683
Mymensingh Branch
10, Swadeshi Bazar, Mymensingh
PABX : (091) 52390, 62228,
Direct : (091) 52391, 62243,
Cell : 01713-069631 (HOB), 01730351433 (OM)
Tele-Fax : (091) 52391
Mirzapur Branch
Nazmul traders Building, 1215 College Road
Mirzapur, Tangail
PABX: (09229) 56591, Direct: (09229) 56592
Cell:01730-727297
(HOB), 01755-607998 (OM)
Fax: (09229) 56593.
New Eskaton Branch
133, New Eskaton Road, Dhaka-1000
PABX : (02) 9354044, 9354738,
Direct : (02) 9359683, Cell : 01714071124 (HOB), 01714-016957 (OM)
Fax : (02) 9354826
Narayanganj Branch
Modern Model Complex, 56,S.M.Maleh
Road, Narayanganj-1400
PABX : (02) 7630150, Direct : (02)
7646894, 7645782,
Cell : 01714-069971 (HOB), 01711-628191 (OM)
Fax : (02) 7630140
Off-shore Banking Unit DEPZ, Savar, Dhaka
(02) 7788240, 01714-116173
Fax : (02) 7788241
Pragati Sarani Branch
Facilities Tower, Kha-199/2 Maddhya
Badda, Dhaka
PABX : (02) 9840689,8816938 Direct :
(02) 9840685, Cell : 01714033300(HOB), 01714-039719 (OM)
Fax : (02) 8837531
Panthapath Branch
Firoz Tower, 152/3-B, Green Road
Panthapath, Dhaka
PABX : (02) 9142879, Direct : (02)
8152852, 8128100, Cell : 01711-218967
(HOB), 01714-026650 (OM)
Fax : (02) 9137887
Pallabi Branch
Setaras Dream, 1/11 & 1/12 Pallabi
Mirpur, Dhaka
PABX : (02) 9000559, 9001913,`
Direct : (02) 9013629, Cell :
01755534924 (HOB), 01730-031816 (OM)
Fax : (02) 9001883
Ring Road Branch
Baitul Aman Tower (1st Floor) Holding
# 840/841, Ring Road, Adabor, Dhaka
PABX : (02) 8158866, Direct : (02)
9129093, Cell : 01714-133285 (HOB),
01714-133286 (OM),
Fax : (02) 8117010
Sat Masjid Road Branch

House # 99, Road # 11/A Dhanmondi
RIA, Dhaka-1209
PABX : (02) 9122374, 9130466,
Direct : ( 02) 8153556, 9135982,
Cell : 01730-373939 (HOB)
01711-425208 (OM),
Fax: (02) 8121652
Sirajdikhan Branch
Hazi Mustafa Plaza, (1st floor) Dag # 284,
Bazar Road, Sirajdikhan, Munshiganj
PABX : (02) 7628320, Direct : (02)
7628381, Cell : 01730-317443 (HOB),
01755-534928 (MO),
Fax : (02) 7628310
Savar Branch
K.K. Plaza (1st floor), A-91, Savar
Bazar Road, Savar, Dhaka
PABX : (02) 7744862, Direct : (02)
7744861, Cell : 01732660456 (HOB),
01730-318785 (OM),
Fax : (02) 7744863
Shimrail Branch
Haji A. Rahman Super Market and
Shopping Tower, Holding No.96,
Shimrail Morr, Chittagong Road
Chowrastha, Siddirganj, Narayanganj
PABX : (02) 7691670, 7692913, Direct :
(02) 7691671, Cell : 01714-039543 (HOB)
Fax : (02) 7691671
Shibpur Branch
Khan Tower, Shibpur Bazar, Narsingdi.
PABX : (06256) 75130, Direct : (06256)
75131, Cell : 01755-645474 (HOB),
01755-545816 (OM)
Fax : (06256) 75134
Sreenagar Branch
Rahman Complex, Sreenagar Bazar,
munshigonj, Cell : 01730-781191 (HOB)
Tongi Branch
Sena Kalyan Commercial Complex (1st
floor)
Plot # 09, Block-F, Tongi, Gazipur.
PABX : (02) 9813811, Direct : (02)
9813874,
Cell : 01714-133777 (HOB), 0173 00
16897 (OM), Fax : (02) 9813835
Tangail Branch
Main Building, Ward # 6 Holding #
414-417, Main Road, Tangail
PABX : (0921) 61248, 61271, Direct :
(0921) 61330, Cell : 01713-082745,
Fax : (0921) 61322
Tejgaon Branch
Shanta Western Tower (Level-2) 186, Bir
Uttam Mir Shawkat Sarak, Tejgaon, Dhaka
PABX : (02) 8879157-8, Direct : (02)
8879160-1,
Cell : 01755-605120 (HOB), 01755-30305 (OM),
Fax : (02) 8879156
Branch Network
Uttara Branch
Siaam Tower (1st Floor), Plot # 15, Sector
# 03, Dhaka Mymensingh Road, Uttara
Model Town, Dhaka
PABX : (02) 8916233, 8950341-2,
Direct : (02) 8950016, Cell : 01711-612438
(HOB), 01714-092081 (OM)
Fax : (02) 8924248
Wari Branch
Tanin Roseate, 43 Rankin Street, Wari, Dhaka
PABX : (02) 9512085,7118169 , Direct :
(02)-7118311, Cell : 01730-318786 (HOB),
01730-704146 (OM),
Fax : (02) 9512084
Chittagong Division
Agrabad Branch
Chittagong Chamber House
38, Agrabad C/A., Chittagong-4100
PABX : (031) 716724-5, Direct : (031)
2521659, 2526396, 2526397, 727018,
710970, 2526160 Cell : 01711-748400 (HOB),
01711-796636 (OM),
Fax : (031) 718971
Ashugonj Branch
Seriya Sayed Tower, Post Office Road,
Ashugonj Bazar, Ashugonj, Brahamanbaria
Direct: 08528-74595, PABX: 08528-74596,
Cell : 01755-534933. (HOB), 01755630304 OM)
FAX: (08528) 74594
Banshkhali Branch
G.S. Plaza (1st floor), Chittagonganshkhali Highway Jaldi, Banshkhali,
Chittagong
Tele-Fax : (0303) 756222, Cell : 0173033-8465 (HOB), 01730-359660(OM)
Fax: (0303) 756223
Brahmanbaria Branch
K Das Bhaban, K Das Square Brahmanbaria
PABX: 0851-61698,
Direct: 0851-61699, Cell : 01755-645488.
(HOB), 01730-781173 (MO)
FAX: 0851-58849
Coxs Bazar Branch
Hajera Shopping Center
Holding # 256, Main Road, Coxs Bazar
PABX : (0341) 51085, Direct : (0341)
51083, Cell : 01713-129263 (HOB)
Fax : (0341) 51084
Comilla Branch
10/8 & 9/7 Chatipatti (1st Floor) Rajgonj,
Comilla
PABX : (081) 72611, 72612,
Direct : (081) 72610, Cell : 01713-082803
(HOB), 01755534920 (OM)
Fax : (081) 72646
Chaumuhani Branch
Holding # 180-182 (1st floor); Feni Road,
Chaumuhani, Begumganj; Noakhali.
PABX : (0321) 54096, Cell : 0173 033
8459 (HOB), 01755645467 (OM).
Fax : (0321) 56096
Chauddagram Branch
Abdul Gani Shopping Complex (1st floor)
Chauddagram Bazar, Comilla
PABX : (08020) 56363-4,
Cell : 01730 318791 (HOB)
Tele-Fax : (08020) 56362
Dagonbhuiyan Branch
R.B Plaza, 391 Falizer Ghat,
Dagonbhuiyan, Feni
PABX: (03323) 79248, Direct: (03323) 79249
Cell: 01730-704145 (HOB)
Fax: (03323) 79250
Fatickchari Branch
Haji Hossain Plaza, College Road, Bibirhat,
Dhurang Union, Fatickchari, Chittagong
Direct : (03022) 56006,
Cell : 01713-103661 (HOB),
01730061480 (OM)
Tele-Fax : (03022) 56006
Feni Branch
Kazi Center, Holding # 106, S. S. K. Road,
Feni
PABX : (0331) 63091, 63093,
Direct : (0331) 63092, Cell : 01713-069623
(HOB)
Tele-Fax : (0331) 63092
Hathazari Branch
N. Zahur Shopping Center (1st Floor)
Kachari Road, Hathazari Chittagong
PABX: (031) 2601524, Direct: (031)
2601525, Cell: 01711- 809292 (HOB),
01730-351432(0M)
Fax : (031) 2601526
Halishahar Branch
Nandita House, Plot # 5/A, Lane # 2, Road
# 2, Block-G
Halishahar Housing Estate, Chittagong
PABX: (031) 2512039, Direct: (031)
2512064, Cell: 01713-255773 (HOB),
01729-215444 (OM)
Fax : (031) 2512054
Hajigonj Branch
Ananda Complex, Holding#191, Hajiganj
Bazar, Hajiganj, Chandpur
PABX: (08424) 75110, Cell: 0173 033
8463 (HOB), 01713-277687 (OM)
Fax : (08424) 75111
IBB, O. R. Nizam Road
739/804 City-A Avenue, Ctg, PABX : (031)
639855, 2861437,Cell : 01714-020266
(HOB), 1819311905( OM).
Fax : (031) 2861434
IBB, Pahartali
B S Plaza, Plot # 305/1390 Abdul Ali Hat,
Sorai Para Alanker Morr, P. S. Pahartali,
Chittagong
PABX: (031) 753143, Direct : (031)
2771751-2, 2773541-2, Cell : 01714025275 (HOB), 01730-091697 (OM),
Fax : (031) 753144
Jubilee Road Branch

Pedrollo Plaza, 5, Jubilee Road
Chittagong-4000
PABX : (031) 614649, 613939,
Direct (031) 2850319, Cell : 01714-080989
(HOB), 01711-796635 (OM),
Fax : (031) 618982
Khatunganj Branch
142, Chand Mia Lane
Khatunganj, Chittagong-4000
PABX : (031) 623213-14,
Direct : (031) 623212, 627297,
Cell : 01711-430916 (HOB), 01711-400332
(OM),
Fax : (031) 610848
Karnaphuli EPZ Branch,
Karnaphuli EPZ, North Patenga,
Chittagong-4204
PABX : (031) 2502382, Direct : (031)
2502381 Cell: 01755-607994 (HOB).
Fax: (031) 2502383
Laldighi East Branch
8, Laldighi East Chittagong
PABX : (031) 2850773, 2850774, Direct :
(031) 2850771, Cell : 01711-400380
(HOB)
Fax : (031) 2850772
Muradpur Branch
Shah Alam Plaza,129, CDA Avenue,
Muradpur, Chittagong
PABX : (031) 2557824;
Direct : (031)2557826,
Cell: 01755-594840 (HOB)
FAX: 031-2557825
Oxygen More Branch
405 Sekander Center
Chittagong Cantonment, Oxygen More,
Chittagong
PABX : (031) 2583181, 2584181
Cell : 0173-0317446 (HOB)
Fax : (031) 2583180
Prabartak More Branch
12/12 O. R. Nizam Road, Prabartak More,
Panchlish Chittagong
PABX : (031) 2553593, Direct : (031)
2553591-2, Cell : 0173-0303-555 (HOB) ,
01730-303556(OM)
Fax : (031) 2553594
Raozan Branch
Fazal Tower (1st Floor), Jalil Nagar,
Raozan, Chittagong
PABX : (03026) 56214, Direct : (03026)
56168, Cell : 01730-031850 (HOB),
01730-327674 (OM)
Fax : (03026) 56215
Off-shore Banking Unit, Zone Service
Complex (G-Floor) , West Wing South
Block CEPZ, Chittagong
031) 741341, 01714-116174
Fax : (031) 741330
Vatiary Branch
Khaleque Tower, Bhatiary, Sitakunda,
Chittagong
PABX : (031) 2781261, Direct : (031)
2781263, Cell : 01755-545810 (HOB),
01755-545811 (OM),
Fax : (031) 2781262
Sylhet Division
Barolekha Branch
Hazi Abdul Ali Trade Center
842, Barelekha Pawrashava, Barelekha,
Moulvibazar
PABX : (08622) 56519, Direct : (08622)
56520, Cell : 0173-0311433
(HOB), 01755 630303(OM)
Fax : (08622) 56522
Beanibazar Branch
Zaman Plaza (1st Floor)
P. O. &. P. S. : Beanibazar, Dist : Sylhet
PABX : (08223) 56139, Direct : (08223) 56140,
Cell : 01714-100497 (HOB), 0173 00
91694 (OM), Fax : (08223) 56141
Biswanath Branch
Al-Burak Shopping Center (1st Floor)
Biswanath Bazar, Biswanath Sylhet
PABX : (08224) 56017,
Direct : (038911) 82480,
Cell : 01714-073330 (HOB),01755630309(OM), Fax : (08224) 56004
Court Road Branch
Court Road, Moulvi Bazar-3200
PABX : (0861) 53877,
Direct : (0861) 53878, 64940,
Cell : 01711-824364
(HOB), 01714-116172 (OM),
Fax : (0861) 53878
Habiganj Branch
Holding # 3794, Commercial Area,
Habiganj
PABX : (0831) 62814, Direct : (0831)
62813, Cell : 0173 03 51427 (HOB)
Fax : (0831) 62815
IBB, Amberichana
Kasablanca Tower (1st Floor) 182, Dargha
Gate, Sylhet-3100
PABX : (0821) 717332, Direct : (0821)
71733, Cell: 01711-824365 (HOB)
Fax : (0821) 717337
Islampur Branch
Century Park (1st Floor), Majortila Sylhet 3100.
PABX : (0821) 2861670, Direct : (0821)
2861669, Cell: 01755-645464 (HOB)
Fax : (0821) 2861668
Kadamtali Branch
Motin Complex, Fenchugonj Road,
Kadamtali, South Surma Sylhet
PABX : (0821) 840053, Direct : (0821)
840045, Cell -0175-5534926( HOB)
FAX : (0821) 840098
Nabiganj Branch
Anowara Biponi, Osmani Road, Nabiganj, Habiganj
PABX : (08328) 56025, Direct : (08328)
56029, Cell : 01713-255774 (HOB)
Fax : (08328) 56015
Sylhet Branch
Laldighirpar, Sylhet-3100
PABX : (0821) 721127, Direct : (0821)
710208, , 01711-824366 (HOB),
Fax : (0821) 710673
Subidbazar Branch
Corner View (1st Floor, West side)
980, Subidbazar, Sylhet
PABX : (0821) 727688, Direct : (0821)
727629, Cell : 01714-069967 (HOB)
Tele-Fax : (0821) 2830942
Sreemangal Branch
Saptadinga Complex (1st Floor)
145, Moulvibazar Road, Sreemangal
Moulvibazar
PABX : (08626) 71183, Direct : (08626)
71181, Cell : 01714-011578 (HOB),
01730373941 (OM),
Fax : (08626) 71182
Sunamganj Branch
Subakth Raja Complex
414 Old Station Road, Sunamganj
PABX: (0871) 62516, Direct: (0871) 62515
Cell: 0173-0373945 (HOB),01755630321(OM),
Fax: (0871) 62514
Tajpur Branch
Maya View Super Market (1st Floor)
P. O. : Tajpur. P. S. : Osmaninagar
Upozilla : Balaganj, Dist : Sylhet
PABX : 08242-56211, Direct : (0824)256210, Cell : 01714-100498 (HOB),01730351428 (OM)
Fax : 08242-56212
Upashahar Branch
Alif Center (1st Floor-Front Portion)
Subhanighat, Upashahar, P. S. Sylhet, Dist
: Sylhet
PABX: 0821) 723524, Direct : (0821)
811366, Cell : 01714-100499 (HOB)
Fax : (0821) 710094
Rajshahi Division
Bogra Branch
331/364, Rangpur Road, Borogola
Bogra-5800
PABX : (051) 78203, 67172,
Cell : 01711-439004
(HOB), 01730-034948 (OM),
Fax : (051) 61142
Baneswar Branch
Baneswar, Puthia, Rajshahi
Cell : 01755-534922
(HOB) 01755-605112(OM)
Chapai Nawabganj Branch
Holding No. 29 (1st floor) Islampur,
Daudpur Road Bara Indira Moor, Chapai
Nawabgonj.
PABX : (0781) 51125, Direct : (0781)
51126, Cell : 0173-0061491 (HOB),
01730-359662(OM),
Fax : (0781) 51127
Ishwardi Branch
Holding # 1335/982 Puraton Bazar,
Ishwardi Pabna
PABX : (07326) 64435,
Cell : 0173-033-8461 (HOB),
01755534921 (OM)
Fax : (07326) 64436
Joypurhat Branch
Tahera Complex, 306 Main Road,
Joypurhat
PABX: (0571) 51156, Direct: (0571) 51157
Cell: 01730-704142 (HOB)
Fax: (0571) 51158
Mohadevpur Branch
Charmatha Boker More, Bridge Road
Mohadebpur, Naogaon
PABX: (07426) 75041, Cell: 01755-545814
(HOB)
Fax: (07426) 75044
Naogaon Branch
Jagannath Bhaban (1st & 2nd Floor)
Holding # 320, Main Road, Bridge-erMore, Naogaon
PABX : (0741) 62150, Direct : (0741)
62151, Cell : 01713-068095 (HOB),
01730066338 (OM)
Fax : (0741) 62152
Natore Branch
1052, Kanaikhali, Dhaka-Rajshahi
Highway, Natore,
PABX : (0771) 67001,
Cell : 0173-033-8466 (HOB)
Fax : (0771) 67002
Pabna Branch
423/1 Sonapatty Road, Pabna
PABX : (0731) 66426, Direct : (0731)
66425, Cell : 01730 -359665 (HOB)
Fax : (0731) 66399
Rajshahi Branch
138/144, Shaheb Bazar Rajshahi-6100
PABX : (0721) 773981, Direct : (0721)
771874, Cell : 01713-082804 (HOB),
01711-824363 (OM),
Fax : (0721) 773980
Rangpur Division
Dinajpur Branch
Mazeda laza (1st floor) 518/473
Ganashtala (near Fire Bridge), Jail Road,
Dinajpur
PABX : (0531) 51289, Direct : (0531)
51291, Cell : 0173-00-61493 (HOB)
Fax : (0531) 51296
Rangpur Branch
Shah-Amanat Super Market (1st Floor)
268 Station Road, Jahaj Companier More,
Rangpur
PABX : (0521) 64119, Direct : (0521)
64120, Cell : 01714-069972
(HOB),01937-992600(OM),
Fax : (0521) 64118
Branch Network
Khulna Division
Daulatpur Branch
Akankha Tower, 454, Khan-A-Sabur Road
Daulatpur, Khulna
PABX : (041) 2850877, Direct : (041)
2850876, Cell : 01755-545812(HOB)
01755-545813 (OM),
Fax : (041) 2850875
Jessore Branch
47, Netaji Subhas Chandra Road
Jessore Town, Jessore-7400
PABX : (0421) 68815, Direct : (0421)
68814, Cell : 01714-074014 (HOB),
01714-036224 (OM),
Fax : (0421) 68816
Khulna Branch
7, Old Jessore Road, Khulna-9100
PABX : (041) 725100,811459 Direct : (041)
720071, Cell : 0173-0320020 (HOB),
01711-824361 (OM),
Fax : (041) 731195
Kushtia Branch
Bangabandhu Super Market 2,N S Road,
Kustia
PABX: (071) 72431,Direct: (071) 72432
Cell: 01730-727290 (HOB).
Fax: (071) 72430
Satkhira Branch
Islam Plaza, 0801/00, Abul Kashem Road,
Satkhira
PABX : (0471) 62450, Direct : (0471)
63007, Cell : 01755-582853(HOB)
Fax : (0471) 63001
Barisal Division
Barisal Branch, Barisal

37, Hemayet Uddin Road Barisal-8200
PABX : (0431) 64011, Direct : (0431)
64012, Cell : 01711-824362 (HOB),
01730031814 (OM).
Fax : (0431) 63712
SME Branch
Aganagar SME/Agri. Branch

Golden Plaza, Purbo Aganagar,
Keranigonj, Dhaka. Cell: 0173 00 96612
Tele-Fax : (02) 7763273,
Bhujpur SME/Agri. Branch
Mokka Shoping Center (1st Floor)
Kazirhat, East Bhujpur, Fatickchari,
Chittagong
Cell : 01713 489692, 01713 255771
(HOB)
Companygonj SME/Agri. Branch
Mother Shopping Complex (1st floor),
Trish, Companygonj, Muradpur, Comilla
Cell: 0173 0096614
Tele-Fax : (08026) 59090,
Chatkhil SME/Agri. Branch
Mamtaz Shopping Center, CNB Road
(North side) Chatkhil, Noakhali, Direct :
(03222) 75113, Cell: 01730-373921(HOB)
Fax : (03222) 75119
Dholaikhal SME Service Center

9/1, Goal Ghat Lane (1st floor) Dholaikhal
Road, Sutrapur, Dhaka.
Tele-Fax : ( 02) 9571896,
Cell: 0173 00 96610
Jhikargacha SME/Ag. Branch
Zaman Market (1st Floor), Holding No.
522, Jhikorgacha , Jessore, Direct :
(04225) 71780, Cell : 01755582854(HOB)
Fax : (04225) 71788
Khajanagar SME/Agri. Branch
Subarna Rice Mill, Khajanagar, Khustia
Cell: 01730-373919, (HOB), 01755541290
Madhabpur SME/Agri. Branch
Madahbpur Purbo Bazar, Dhaka Sylhet
Highway ,Madhabpur, Habiganj
Direct : (08327) 56342, Cell : 01713
187920
Fax : (08327) 56343
Madunaghat SME/Agri. Branch
Mabia Emporium, Madunaghat Bazar,
Hathazari, Chittagong
Direct: 031-2573206, Cell: 01755534932
(HOB)
Fax: 031-2573205
Narsingdi SME/Ag. Branch
BS Plaza (1st Floor), 9 Uttar Kandha Para,
Bazirmore, Narsingdi, Direct : (02)
9463343,
Cell: 0173 00 96613, 01730727294
Posta SME Service Center
90, Water Tank Road, Posta, Lalbag,
Dhaka
Direct : (02) 7343663, Cell: 0173 00 96611
Raipur SME SME/Agri. Branch
Queen Complex, Holding # 514/15 Main
Road, Raipur, Laximpur
Direct: (03822) 56396, Cell: 01730706703.
Fax: (03822) 56397
Sonargaon SME/Agri. Branch
Modina Tower, Mograpara Chourasta
Sonargaon, Narayanganj
Direct : (06723) 56359, Cell : 01713
255770
Fax : (06723) 56362
Syedpur SME/Agri. Branch
Radhis Shopping Complex, Syedpur,
Jagannathpur, Sunamgonj
Cell : 01713-255776 (HOB), 01730329966
(OM)
Sherpur SME/Agri. Branch
819 Municipal Road, Chakbazar, Sherpur
Direct: (0931) 62176, Cell: 01730-373938.
Fax: (0931) 62175
Takerhat SME/Agri. Branch
Haji Lalchand Bepari Super Market
Takerhat, Rajoir, Madaripur
Cell : 01713255772 (HOB), 01730329962
Thakurgaon SME/Ag. Branch

Chowdhury Complex, 272 College Road,
Thakurgaon
Direct: (0561) 52295, Cell: 01730-373940,
01755541292
Fax: (0561) 52538
Subsidiary Companies
Prime Exchange Co. Pte Ltd (Singapore)
2A Desker Road, (2nd Floor) Singapore
Tel : 65-6392 4996, 0065- 6392 4829,
0065-91963012, E-mail:
primex@singnet.com.sg
Fax : 65-6392 4838
Jurong East Branch
Block 134, Jurong Gateway
Road # 1-305, Singapore-600134
Tel : 0065-68994647, 0065-96432498
Fax : 0065-65617559
E-mail: prime.jurongeast@yahoo.com
PBL Exchange ( UK ) Limited,UK
London Branch
16 Brick Lane London, E1 6RF
Tel (Off) : 02076500005, 07939227610
E-mail: pbl.ex.uk@primebank.com.bd
Birmingham Branch
PBL Exchange (UK) Limited,UK
493 Coventry Road,
Birmingham, B10 0JS
Tel (Off) : 01217735553, 07956675296
Oldham Branch, Manchester

PBL Exchange ( UK ) Limited,UK
104 Featherstall Road, North Oldham, Ol9
6BX
Tel (Off) : 01616522444, 07956675297
608 (6th Floor), Tower-2, Admiralty Centre,
18 Harcourt Road, Honk Kong
Tel (Off) : 852-2529- 2710, 0852 2529
2719, 852 6274 2996
Tel (Off) : 02-7174716, 02-9555674
Cell : 01819-219496
E-mail:mortuza@primebank.com.bd
Fax : 88-02-9559257
Sarker Mansion (3rd Floor) 29, Rajuk
venue, Motijheel C/A, Dhaka-1000
Tel (Off) : 02-9513396, 02-9513397
E-mail: pbsl@primebank.com.bd
Fax : 88-02-9566912
House # 8 (2nd Floor), Road # 19/A,
Block-E, Banani, Dhaka-1213
Tel (Off) : 02-8828900, 02-8813788,
02-8813800/101, Cell : 01713-069905
E-mail: iqbalanwar@primebank.com.bd
Fax : 88-02-9886046
Glossary
AD
ALCO
ATM
BB
Bank
B/L
BAS
BIBM
CRR
CRG
CSR
CPI
CDBL
CBS
CRISL
DCFCL
DEPZ
DP
EPS
EPZ
FY
GDP
HOB
ICA
IT
IM
IAS
IPO
LC
MBID
MTMF
MANCOM
NII
NPL
NC
OBU
PCBs
PBL
PECL
PBIL
PBSL
POS
PV
RWA
RMG
ROA
ROE
R&D
ROD
SAFA
SME
SOP
SLR
Authorized Dealer
Asset Liability Committee
Automated Teller Machine
Bangladesh Bank (Central Bank of Bangladesh)
Prime Bank Limited
Bad/Loss
Bangladesh Accounting Standard
Bangladesh Institute of Bank Management
Cash Reserve Requirement
Credit Risk Grading
Corporate Social Responsibly
Consumer Price Index
Central Depository Bangladesh Limited
Core Banking Software
Credit Rating and Information Services Ltd.
Departmental Control Function Check List
Dhaka Export Processing Zone
Depository Participants
Earning Per Share
Export Processing Zone
Fiscal Year (July to June)
Gross Domestic Product
Head of Branch
BInstitute of Chartered Accountants of Bangladesh
Information Technology
FInternational Monetary Fund
International Accounting Standard
Initial Public Offering
Letter of Credit
Merchant Banking and Investment Division
Medium Term Macro Economic Framework
Management Committee
Net Interest Income
Non Performing Loan
BsNationalised Commercial Banks
Offshore Banking Unit
Private Commercial Banks
Prime Bank Limited
Prime Bank Securities Ltd.
Point of Sale
Present Value
Risk Weighted Assets
Readymade Garments
Return on Assets (excluding contingent items)
Return on Equity
Research and Development
Rights Share Offer Document
South Asian Federation of Accountants
Small and Medium Enterprise
Standard Operating Procedure
Statutory Liquidity Requirement
Notes

Annual Report 2012

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Annual Report 2012

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Sailing Through Success

These achievements include SAFA (South Asian Federation of Accountants) Best

Winner- 1st Runner up in Overall category), ICAB (Institute of Chartered Accountants of

2012- Inspirational Company Award from WORLDCOB (World Confederation of Business)

category of Best Financial Institution.

ICAB National Award

The Bizz 2012

ICMAB Best Corporate

Notice of the 18th Annual General Meeting

Standard Disclosure Index

Ethics, Integrity and Trust

Statement Regarding Forward Looking Approach 14

Board of Directors & Profile

Group Chairman's Message

Managing Director & CEO's Roundup

Financial Highlights- PBL

Key financial Data & Key Ratios- PBL

Graphical Presentation- PBL

Distribution of Shareholdings in 2012

Shares held by the Directors in 2012

Economic Impact Report

- Value Added Statement

- Economic Value Added Statement

Market Price Information

Financial Calendar 2012

Investors' Relation & Inquiries

Glimpses of 17th AGM

Directors' Report on Financial Statements and Internal Control 37

Report of Prime Bank Shari'ah Supervisory Committee 40

Sustainability Report - Green Banking

Group Corporate Structure

Management Discussion & Analysis

Report on Risk Management by Chief Risk Officer

Market Discipline Disclosures on Risk Based Capital (Basel-II) 120

Rationale of the Cover

Prime Bank Foundation

Products and Services

(Corporate Social Responsibility)

Certificate regarding compliance of BSEC Notification

Auditors' Report to the Shareholders

Financial Statements- Group & PBL

Financial Statements- OBU

Financial Statements- PBIL

Financial Statements- PBSL

Financial Statements- PECL, Singapore

Financial Statements- PBL Exchange (UK) Ltd.

Financial Statements- PBL Finance (Hong Kong) Ltd. 395

Mohammed Ehsan Habib

Annual Report 2012 3

Annual Report 2012 4

Standard Disclosure Index

Corporate Objectives, Values & Structure

Overall strategic objectives

Core values and code of conduct/ethical principles

Profile of the Company

18-27, 78-79, 286-288

28-35, 80-105, 193, 202

Social Corporate Responsibility (CSR) Initiatives

Environment related Initiatives

Information on Bank's contribution to the national exchequer & to the economy

Disclosure of Accounting policies and General Disclosure

100, 142, 305

209, 216, 264-265

Statement of Financial Position / Balance Sheet and relevant schedules