1616060601.6826615 - NRBCBANK 2018 Annual

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Turning it around
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toward a goal
we strive for . . .
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We turned the wheels to reach the des�na�on we dreamt of

With a defini�ve purpose soaked in hope
Boarding the transforma�on train toward our desired heights
Forming a bridge of compliance and equality for us all
CONTENTS NRBC Bank at a Glance
Letter of Transmittal
Notice of the 6th Annual General Meeting
Corporate Profile
Vision, Mission, Strategic Objectives,

Core Values and Forward Looking Statement
04-18
04
05
07
11-14
Chronicles 15-18
Profile, Review and Committees 19-57
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From the Desk of the Chairman 20-22
Words from the Managing Director & CEO 23-27
Board of Directors’ Profile 29-36
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Sponsors 37-42
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Shareholders 43
Committees of NRBC Bank 44-50
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Branch Networks 51-58

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Report and Governance 59-130

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Key Financial Indicator 59-64

Directors’ Report 65-89
Audit Committee Report 91-93
Credit Ratings 94
Corporate Governance 95-130
2 Annual Report 2018

Risk Management & Basel -III 131-147
Risk Management 131-138
Market Discloseure under Basel-III 139-147
Integrated Reporting 149-169
Corporate Social Responsibility (CSR) 149-151
Human Capital- the Key to brilliant act 153-155
NRBCBank’s Alternative Delivery Channel 157-161
NRBC ICT Team Never Sleeps 163-166
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NRBC Bank towards Green Banking 167-169
Financial Statements
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Responsibility Statement of MD and CFO’s 170
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Auditors’ Report & Audited Financial Statement
of NRBC Bank Limited 171-262
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Auditors’ Report & Audited Financial Statement

of NRBC Bank Securities Limited 263-282
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NRBC Bank’s Products 283-288

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NRBC Bank Deposit Products 283-287

NRBC Bank Loan Products 288-289
NRBC Bank 3
Letter of Transmittal
All Shareholders of NRB Commercial Bank Limited

Bangladesh Bank
Bangladesh Securities & Exchange Commission
Registrar of Joint Stock Companies & Firms
Dear Sir(s)
Annual Report of NRB Commercial Bank Limited (NRBC Bank) for the year ended on 31st December 2018
We are pleased to enclose a copy of Annual Report 2018, along with the Audited Consolidated Financial Statements for
the year ended on 31st December 2018 for your kind information and record.
The Report includes consolidated Balance Sheet, Income Statement, Cash Flow Statement, Statement of Changes in
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Equity, Liquidity Statement along with Notes thereon and Directors’ Report of NRBC Bank for the year ended on 31st
December 2018.
Best regards c
Yours truly,
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Md. Mozammel Hossain, FCA

Company Secretary
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Notice of the 6th Annual General Meeting
Notice is hereby given that the 6th Annual General Meeting (AGM) of NRB Commercial Bank Limited will
be held on Saturday, 20 July 2019, at 11:00 am at Boardroom of the Bank, Silver Tower, 52 Gulshan Avenue,
Gulshan-1, Dhaka to transact the following businesses:
Agenda
1) Consideration and adoption of Directors’ Report and the Audited Financial Statements of the Bank for the
year ended 31st December 2018 together with the Auditors Report thereon.
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2) Declaration of Dividend for the year ended 31st December 2018 as recommended by the Board of Directors.
3) Election/ Re-Election of Directors.
4) Appointment of Statutory Auditors and fixation of their remuneration.
c By order of the Board of Directors
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Md. Mozammel Hossain, FCA
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Company Secretary
Dated : Dhaka, 27 June 2019
NOTES:
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I. Book closure date has been fixed on Monday, 1 July 2019.
II. Members whose names appeared on the Members Register as on Book closure date i.e. Monday, 1
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July 2019, are eligible to attend the 6th Annual General Meeting and receive dividend.
III. A Member entitled and vote at the Annual General Meeting may appoint a proxy to attend and vote
on his/her stead.
IV. The instrument appointing proxy duly filled and stamped Tk.20.00 must be submitted at the
Registered Office of the Company at least 72 (Seventy-two) hours before the time for holding of the
meeting.
V. Attendance of the shareholder(s)/proxy(ies) shall be recorded at the entrance of the venue.

Attendance slip has to be signed and submitted at the Registration Counter.
NRBC Bank 5
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Corporate Profile
Name of the Company NRB Commercial Bank Limited
CORPORATe PROFILe Red Crescent Jashim Trade Centre
Dhaka-1000, Bangladesh
Phone : 880-02-9573422-30
Fax: 880-02-9573421
Email: nrbcb@nrbcommercialbank.com
www.nrbcommercialbank.com
Legal Form Public Limited Company

Facts & Figure as on 31 December 2018
February 20, 2013
April 2, 2013
Core Banking Segment
Agent Banking Bangladesh Bank Approval : May 29, 2014
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Agent Point : 551 Agent Points
Name of NRBC Bank’s Subsidiary

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Network Total Branches : 68
Total ATM : 51
Total RMA : 160 Banks (more than 700
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individual branches in 37 countries)
Chairman Mr. S M Parvez Tamal
Mr. Mohammed Adnan Imam, FCCA

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Chairman – Risk Management Mr. S M Parvez Tamal

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Managing Director & CEO Mr. Khondoker Rashed Maqsood
Company Secretary Mr. Md. Mozammel Hossain, FCA
Mr. Md. Mukhter Hosain
Mr. Syed Mahbubul Haq
Mr. Harunur Rashid
Annual Report 2018
Auditors MABS & J Partners
Chartered Accountants
Tax Consultants K M Hasan & Associates
Limited (CRISL)

Authorized Capital Tk. 10,000 Million
Capital Tk. 7404.30 Million
Paid-up Capital Tk. 5,145.00 Million

Tk. 5,710.95 Million [If Bonus Share
@11% is approved by Shareholders in
6th AGM]
Employees No. of Official : 970

No. of Staff : 14
Deposits 54,085.64 Million
Return on Investment/Equity (ROI/ROE) 13.89%
Return on Asset (ROA) 1.50%
Capital to Risk Weighted Assets Ratio 14.09%

(CRAR)
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Net Asset Value per Share Tk. 13.79 Per Share
Net Operating Cash flow per share Tk. 10.13 Per Share
Loans & Advances 48,151.88 Million
Reserves
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Tk. 1,061.29 Million
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Total Assets Tk. 67,142.86 Million
Earnings per Share Tk. 1.82

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Net Asset Value Tk. 7,094.31 Million
Total Nostro Account 12

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NRBC Bank 9
Bangladesh Association of Association of Bankers
Banks (BAB) Bangladesh Limited
associates
Bangladesh Institute of Bank

Management (BIBM)
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Primary Dealers Bangladesh
Limited (PDBL)
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American Chamber of Commerce Foreign Investors’ Chamber of

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in Bangladesh (AmCham) Commerce & Industry (FICCI)
The Institute of Bankers Bangladesh Foreign Exchange

Bangladesh (IBB) Dealer Association (BAFEDA)
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Mission Core Values

Vision Forward Looking Statement
Strategic Objectives
Mission Vision
The bank shall devote in creating confidence for To become a peerless bank in terms of providing efficient &
investment among the Bangladeshi expatriates innovative banking services, safeguarding depositor’s interest,
offering them desired services, attractive profitability fulfilling shareholders desire, supporting economic growth of
and secured investment through our various financial the country with particular attention to channelize regular
products. inflow of foreign remittance of Bangladeshi expatriates
working abroad and also the inflow of idle and less
The bank shall create extra-ordinary opportunities to the
remunerative fund held with wealthy NRBs.
intending wage earners in getting jobs abroad through our
dependable and reliable intermediary services.
The bank shall arrange need based effective training and
education programme for the intending FC wage earners
of Bangladesh to survive against competitors of other
countries.
The bank shall deliver service excellence through providing
existing & innovative products in cost & time efficient
manner, to its all retail & corporate customers.
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The bank shall constantly focus and monitor the changing
needs and aspirations of its customers, to develop new
and re-engineer the process of service delivery.
The bank shall always be vigilant to maintain
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banking business risks within its tolerable limit in order
to protect depositor’s interest and ensure highest return
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to the shareholders.
The bank shall be the forerunner in exploiting new
sources of fund such as Assets Securitization, issuance
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of mutual fund etc., for addressing the needs of newly

emerged financing areas such as SME financing, factoring,
micro finance, IT based products, housing financing etc.
with a view to furthering the economic growth of the
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country.
The bank shall create an enabling environment, adopt and
nurture carefully a team-based culture where people will
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be motivated to accept banking challenges and to face

other competitors.

Strategic Objectives Core Values
• Create opportunities for NRBs to invest their o Corporate Governance: conducting all business
earnings, utilize their professional expertise
affairs in compliance of regulatory rules
development of Bangladesh.
• Channelize idle and less remunerative fund of o Creativity -Technological innovation: Introduction
NRB’s. of new product & processes with significant
• Attract FDI of NRB’s through diverse products and technological changes to meet customers’ banking
projects. requirements in an efficient way
• Balanced and sustainable growth.
o Humanity: Enable humanity through banking by
• Maximization of Shareholders’ Wealth.
financially enabling mass people with affordable,
• Accomplish the long cherished desire and dream accessible and relevant financial products and
of NRB’s to have a Bank of their ‘own’.
services
• Excellence of manpower efficiency through
attractive compensation package, promoting staff o Trustworthy: Keeping trust in the very first place
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moral through training, development and career by being reliable to the customers and by providing
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financial guidelines always beneficial to the clients
• To invest in the thrust sector for the overall
economic development. o Loyalty: Be a bank of loyal customers and
• Technology transfer with the help of the well employees by adding values in their financial lives
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educated professionals and experienced sponsors
of the bank to have a green banking practice. o Sustainability: Creating sustainable economic
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value for our shareholders, Customers, employees,
• Ensure best Corporate Social Responsibility (CSR)
practice. and community by utilizing an honest and efficient
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business methodology.
• Promise to make the world of NRBC Bank a little
bigger, everyday.
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NRBC Bank 13
Code of conduct Forward Looking Statement
NRBC Bank shall maintain a pleasant working environment in its Banking industry is operating in a competitive environment.
organization in terms of presence of well set and well defined More than sixty (60) Banks along with a number of NBFIs
compensation package, clearly set goal orientation, as well as are vying for market share. Though NRBC is a fourth
performance-led job description for employees of all levels.
generation Bank, it has already created a positive mind
Salient features of NRBC Bank Code of conduct are given below:
share of the customers in this turbulent market. To be
o At all times the stakeholders of NRBC Bank shall act in
one of the most valuable brand in the financial market
a professional and ethical way, and uphold the highest
standards of honesty, trust, fairness, integrity and dili- of Bangladesh and to create a long-lasting value for our
gence; stakeholders, the Bank will focus on the following issues
o Every stakeholder shall consider the risks and in the subsequent years.
implications of their actions and in principle, should
o Reducing Cost of Deposit (CoD), by mobilizing
feel accountable for them, and for the potential adverse
Low Cost/Cost Effective Deposit by rearranging of
impacts;
o All in NRBC Bank shall take firm promise to comply with existing deposit mix of the bank
o Mitigating credit risk through addressing of
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all current regulatory and legal requirements, and adopt
endeavor to follow best industry practices; proper policy, guidelines, assessment, risk analysis
o All information be used and handled with best and documentation
care and due diligence be applied to ensure highest
o Keeping Non Performing Loan (NPL) at an accept-
confidentiality and preserving sensitivity;
able/tolerable range
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o Prevent and avoid potential conflict of interest that may
o Extending the banking facilities to unbanked
arise and influence one whilst he/she performs;
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o Serve customers, colleagues and counter parties with people through banking networks, i.e Branches,
due care. Respect their desires and serve them with Booths, and Alternative Delivery Channels(ADCs)
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responsibility if they asked for, or help them voluntarily;

o Providing banking services to the stakeholders
o Set the service standard for the organization that through state of the art technology
reflects professionalism that also expresses values and
o Paying greater attention to reduce Cost of
attitudes, as well as positive behaviors;
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o Equip employees to carry out their duties with due Administration (CoA) of the bank which will eventually
regards to the technical and professional standards improve cost to income ratio, interest coverage ratio,
expected by qualified customers. Encourage the staffs and Burden ratio of the bank
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continuously to develop and maintain their o Diversifying of Investment in different assets to

technical and professional knowledge and level of
minimize investment risk
competence; and
o Train and encourage the staff/officials to act with o Maintaining strict compliance and good
complete integrity towards customers, colleagues, governance to ensure long term sustainability of
counter parties and others with whom they may come the bank
into contact. o Prioritizing ecological balance of the environment
The ethical conduct of all employees of NRBC Bank and to grow together with our stakeholders
the reputation of the profession depend largely on their
approaches and attitudes at all levels. Standards of integrity,
ethics and professionalism cannot be created or maintained by
written rules alone, rather this depends upon the integrity and
behavior of those engaged as professionals in the industry.
Thus the responsibility of the bank is to adopt and uphold
integrity and professional ethics in all of its units and service
standards.

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Chronicles
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Chronicles
2011
May 31, 2011
Applica�on for Bank License
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2013
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April 17, 2012
Le�er of Intent [LOI]
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February 20, 2013 May 13, 2013

Cer�ficate of Incorpora�on Authorized Dealer permission
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February 20, 2013 June 16, 2013

Cer�ficate for Commencement of Business Clearing House Membership
February 23, 2013 August 03, 2013
First Mee�ng of Board of Directors SWIFT Membership
March 10, 2013 August 04 , 2013

Bank License from Bangladesh Bank 1st RMA [Rela�onship Management Agree-
ment]
March 10 , 2013
August 12, 2013
Primary Dealership license
Statutory Mee�ng of the Shareholders
April 02, 2013 August 28, 2013
Inaugura�on Ceremony Membership with VISA Interna�onal
April 17, 2013 December 29 , 2013
Branch licence Commencement of NRB Desk
April 18, 2013 December 29 , 2013
Opening of First Branch Opening of 10th Branch [Mugrapara]

Chronicles
January 23, 2014

Achievement of
2014
Ten Thousand Accounts
April 02, 2014
Launching of
Internet Banking
April 02, 2014
Launching of VISA Card
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August 11, 2014
Opening of 20th
Branch [Rajshahi]
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2015
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2016
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January 07, 2015

Opening Training Ins�tute
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March 08, 2015

May 26, 2016 Achievement of
Achievement of One Lac Accounts Fi�y Thousand Accounts
November 24, 2016 July 12, 2015

Opening of 50th Branch Opening of 30th Branch [Rangpur]
[Chandina,Comilla] September 20, 2015
December 12, 2016 Forma�on of Subsidiary Company
Resume of Commercial Opera�on (NRBC Bank Securi�es Ltd.)
of NRBC Bank Securi�es Ltd. December 17, 2015
December 28, 2016 Launching of Agent Banking
Opening of first Mohila Branch December 30, 2015
[Dhanmondi] Opening of 40th Branch [Bhulta]
NRBC Bank 17
Chronicles
September 10, 2017

Achievement of One Lac Fi�y thousand Account
2017
November 13, 2017
Strategic Partnership with ROBI Axiata Ltd
[Safetynet fund disbursement]
December 24, 2017

Opening of 60th Branch [Bhairab, Kishoregonj]
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2018
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August 16, 2018

Licence of 1st ever specialized 10 Banking Booths
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November 20, 2018

Achievement of Two Lac Fi�y thousands Account
December 26, 2018

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Opening of 68th Branch
December 30, 2018

Achievement of 5500 Crore Deposit

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From the Desk of the Chairman

Words from the Managing Director & CEO
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From the Desk of the Chairman
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Dear Fellow Shareholders

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Warm greetings and welcome to the 6th Annual General Meeting of NRB Commercial Bank Limited. It has been almost
a year back since I conveyed a message to you all, reminiscing the days that are gone and shared our collective
optimism for our days in the future. It is time again to say a few words from the Chairman’s Desk on and about the
Bank.
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Let me express my gratitude to Almighty at the beginning for allowing me to complete the first year as the Chairman
of our esteemed organisation and carry on the responsibility assigned by all the regulators, members of the Board of
the bank and all other stakeholders. 2018 was not only a challenging year for our bank but also for the entire banking
sector in Bangladesh. As the Chairman of the Bank, I take this opportunity reminiscing what happened in 2018 and
what our plans are for the years ahead. The Bank itself was established with the dreams of 53 NRBs across the globe.
But today NRBC Bank has grown beyond our imagination as new shareholders have also joined in and have become
part of our Bank. I count this as a matter of great fortune that each and every one of the shareholders is prominent in
his/her own field and they are sincerely working on and off for the betterment of our Bank.
We have undertaken several time bound action to face off various challenges in 2018. Improving the return on
investment and related parameters were and are still the major concern for us. As such, reducing non- performing
loans (NPL), recovery of weak loans and improving the liquidity position of the bank were amongst the foremost
agenda where the Bank concentrated upon. These challenges were overcome through a collective effort of the Board
of Directors, the Management and all employees of the Bank. The success of which we dreamt of in 2018, we are
hopeful that we will be able to achieve it in 2019.
Since the early days, NRBC Bank has been providing tailor-made services to all of its valued customers with an
impressive array of products and services. It is our challenge to maintain and even perform better in the year 2019.
Our tradition of dependency on corporate deposits has waned and gave way to opening of a new horizon in retail
business. It is my hope that this trend shall prove to be a rejuvenating factor for the Bank’s development in the long
run. This trend of focusing on retail business shall be on with full force in 2019 as well.

During 2018, one of the foremost concentrations of the Board of Directors was to maintain corporate governance
and absolute compliance in the Bank, which, we believed would pave the way to an improved financial indicator.
Unsurprisingly in course of time, Bangladesh Bank has expressed their satisfaction on the performance of the present
Board along with the Management and subsequently withdrawn the Observer. Withdrawal of the Bangladesh Bank
Observer was one of my pledges to the Bank as the issue stood in the way of building further progression regarding
creating a positive brand image. This can be a game changer, as this refers to an inferred statement that the Board
of Directors along with the Management has been able to restore its confidence in the eyes of the central bank.
It is also a testament that NRBC Bank has made it through the somewhat trying times and has re-emerged as a
trustworthy banking institution in the country. We always had faith that the Board of Directors would be able to
maintain compliance and corporate governance and I, for one, am more than content to see that our collective belief
has been paid off. However, this would not have been possible without the guidance of the Observer and Bangladesh
Bank in every step of our journey.
One of the biggest changes we made in order to bring transparency and make compliance easier. What followed was
that NRBC introduced video conference technology in holding meetings of Board of Directors and its Committees
as per approval of Bangladesh Bank for the first time as a scheduled bank in Bangladesh. Implementation of video
conference technology has ensured filling up quorum shortage for the NRB Directors. The video footage of all meetings
is preserved for greater transparency.
We have started to get the desired results of our continuous strive towards excellence both in terms of corporate
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governance on one hand and efficiency in balance sheet management. As of 31st December 2018, our operating
profit stood at BDT 201.75 cr. considering the financial climate of the year, it was an incredible achievement by the
Bank and I am grateful to our Board of Directors and the Management for making it happen. Our deposits stood at
BDT 5593.99 cr. and loans & advances stood at BDT 4,811.78 cr., which is a growth of 18.72% and 12.03% respectively
from that of the previous year’s. On top of that, our NPL, which was one of the biggest concerns in the entire banking
sector was brought down to 2.94% by 31st December 2018.
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NRBC Bank is working round the clock to identify the loan accounts which are likely to fall off the rails and taken
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necessary nursing policy to strengthen such loans. Special task forces and Clusters have been set up for debt collection
and Central Recovery Cell has been formed for this purpose as well. Loan portfolio has been reconstituted with the
guidance and management efforts of the Board. Considering the future prospects of reducing the risk of corporate
loan, the Bank has offered to concentrate on retail business. We want to follow up this year on a more extensive
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manner.
The actualization of the vision we had for our Bank was largely dependent on the expansion network of the Branches,
ATM and Banking Booths. As on 31 December 2018, NRBC Bank had 68 Branches in operation across the country. In
2019, Bank can spread its branch network in other untapped regions where business can be expanded. Opening of
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Banking Booths, BRTA Collection Booths, Land Registration Fee Collection Booths can be some new ways to expand
our reach nationwide. While expansion of network is concentrated upon, it is also significant to nurture the existing
branches. The pressure on new branches and banking booths will be significantly lower if the existing branches can
perform to their best. We see plenty of possibilities looming on the horizon in this regard.
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Bangladesh requires great need for infrastructure development. However, as there are limited local sources to finance
these projects, it always looks to tap foreign funds mostly from multilateral donors to implement development
projects. Considering the scenario, NRBC Bank has engaged in infrastructure lending to become an indispensable
part of nation building especially in the Rooppur Nuclear Power Project. Infrastructure lending by local banks will give
an edge to public projects and ease the burden of the national exchequer. NRBC has also set up a special branch in
Rooppur to provide banking services related to the organization of Rooppur Nuclear Power Plant in collaboration with
Russia and Bangladesh.
Today, financial technologies – otherwise known as FinTech, has proved to be a big giant in the making when it
comes to modern banking. The rapid rise of FinTech has changed the business landscape in banking asking for more
innovative solutions. Banks have started to compete beyond financial services facing increasing competition from
nonfinancial institutions providing with regard to providing payment services. The alternative payment services such
as bKash, Rocket etc. have made transactions easier in this country while the security of the transactions have been an
issue that should not be overlooked. But we at NRBC are looking toward providing digital banking solutions with state-
of-the-art security – as cashless society that the modern world is moving toward must be secured at any cost. We
are already aware that Scandinavian countries like Sweden, Norway are much ahead in adopting cashless transaction
methods. Although Bangladesh has a quite the road to travel for adopting cashless payment systems, things are looking
up and changing for the better in recent times under the various development projects and implementations of our
present government. We at NRBC, like the rest of modern world, want to revitalize the banking transaction system
through digitalization. We want to use technological advancement in order to meet the ever-changing demands of
our customers 24/7 through our banking app “Planet”. NRBC is already providing round the clock services through
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our internet banking and mobile banking services. Our ultimate goal is to reach the international standard of banking
service with a heavy but healthy reliance on advanced technologies. Technology-driven business models followed by
the banks and financial institutions ensure faster and better services to the clients.
There has also been significant progress in the overall business segment of the Bank. At present, over 36 lac e-GP
customers submit their fees to NRBC Bank. We are currently executing contracts to collect land tax and registration
fees which are expected to be collected from January 2019. We are also serving the government and autonomous
organization such as BPC, Padma Oil, Meghna Oil, Jamuna Oil, TCB, REB, DESCO, DPDC, PDB, BRTA, WASA, Titas,
BGMC, Petrobangla and many more.
It was our belief that if we want to prosper and advance the Bank in the coming days, we needed to turn NRBC into a
family for all of its Shareholders and the employees alike. Shared experiences tend to grow the bond between people
and we wanted to make NRBC Bank not only an institution but an institution that has the possibility to transform into
something more, something humane. For this, we planned to work together with the promises of new experiences,
new challenges and new opportunities for the progress of the organization. It is my pleasure to inform you all that
now more than ever before, the whole of NRBC Bank works as a combined unit. The employees of the Bank work
with unparalleled sense of integrity, morality, trust, diligence and utilize our positive energy for organizing an effective
team. We believe that this team will be engaged with full force to keep up the commitment to provide the best service
to the customers during the upcoming years as well.
Bangladesh Bank since June 2008 officially started encouraging towards mainstreaming CSR in banks and financial
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institutions. We at NRBC Bank believe that a better society is fundamental precondition for a better business
environment. In 2018, NRBC provided financial assistance and donations to a number of organizations and individuals.
We donated to Prime Minister’s Relief and Welfare Fund, Bangladesh University of Professionals, Bangladesh Red
Crescent Society and other quarters under CSR activities of the Bank.
We have laid out strategies for full implementation of BASEL III by January 2020. On the road toward this goal, NRBC
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has focused on strengthening risk management and control environment rather than increasing capital to cover up
weak risk management and control. In parallel to business growth, the bank effectively manages its capital to meet
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regulatory requirement considering the risk profile.
Today, NRBC Bank has already turned around by maintaining corporate governance and compliance on a whole new
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level. The Board of Directors along with the Management shows zero tolerance regarding compliance and corporate
governance. Together we will strive to pursue the objectives with utmost dedication and vision.
I extend my sincere thanks and gratitude to our dynamic Board of Directors for their valuable and judicious policy
support and timely decisions all along. My deepest gratitude goes to our regulators specially Bangladesh Bank,
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Bangladesh Securities and Exchange Commission, Registrar of joint stock companies & Firms, Large taxpayers unit
and external auditors. I also thank the NRBC Bank Management team for their passion, dedication and efforts to attain
corporate vision, mission and strategic objective and at the same time for ensuring our core value remains consistent.
So, once again, thank you all for your hard work, contribution, prudence and commitment for betterment of the Bank.
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Like we have been able to overcome the challenges in 2018, it is our collective belief that if we stand united, we will
be able to achieve our dreams that we envisioned for a better future.
May the Almighty help us walk on the path toward success in a compliant, transparent manner like we have done in
the preceding year.
S M Parvez Tamal
Chairman

Words from the Managing Director & CEO
Dear Shareholders
2018 saw us taking a walk alongside a
pathway of a solid, meaningful progress for
NRBC toward the predominant goals we laid
out at the beginning of the year. We wanted
to see an actualization of our coveted
destination, to reach at a point where
we could redeem NRBC Banking image
and revitalize it, revamp the organization
structure for a better one and transform the
Bank into a successful institution which our
peers would look up to. We also redefined
our strategy, something that would drive
sustainable revenue growth while not
compromising slightest with the corporate
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governance and pristine compliance. We
wanted to venture into new client segments
while maintaining and deepening our
relationships with the existing client base.
We wanted the future to come earlier at our
doorstep with the implementation of cutting-
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We dreamt with a purpose, worked round
the clock to turn the dreams into reality – for
our heads were not buried in the clouds. We
are not dystopian but realistic, nor we are to
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give in or give up to the rising mountains –

for NRBC is making great strides.
We hope to have you with us along this
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wonderful journey toward progress, vitality

and take us all to reach a height we did not
dare to envision before.
Our Economy under Global Gaze
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2018 saw a rise in the GDP growth – according to Bangladesh “Growth in Bangladesh’s economy is driven by domestic
Bureau of Statistics (BBS), which reached 7.86 percent, consumption expenditure, government spending,
surpassing the projected growth of 7.24 percent. This is a remittances and exports. While the country has made
important steps towards modernising its economy in
significant rise than that of the preceding year, which was 7.28
recent years, significant challenges remain. On the
percent. political side, high-level corruption and tension between
According to the Centre for Economics and Business Research the main parties could lead to instability surrounding the
(CEBR), a UK based leading research and consultancy firm, parliamentary elections at the end of 2018.”
Bangladesh has been ranked 41st among the world’s largest - CEBR, World Economic League Table 2019
economies in terms of GDP and has become the second biggest
economy in South Asia. On the other hand, Asian Development Bank (ADB) has marked Bangladesh as the highest GDP
growth rate in South Asia region, where Bangladesh is expected to achieve 8.0% growth in 2019 and 2020.
Keeping in line with the government’s medium and long-term market development agenda and focus on achieving
the Sustainable Development Goals by 2030, Bangladesh Bank’s monetary and financial policies have long prioritized
the government’s inclusive and sustainable growth agenda, by fostering price and financial stability. The policies aim
at creating more and better jobs in environmentally sustainable production pursuits, through supporting micro, small,
and medium enterprises in the manufacturing, agriculture and service sectors. The ongoing implementation of macro-
prudential policies are aimed at providing adequate supply of quality credit to support the Government’s growth and
inflation targets, while promoting domestic and external financial stability amid the shifting global and domestic risk
considerations.
NRBC Bank 23
Recently a research was published by Standard Chartered India’s Head of Thematic Research, and SCB’s Global Chief Economist
which highlights the economies around the world likely to grow the fastest in the 2020. According to the research, Bangladesh’s per
capita income will grow nearly four times throughout the 2020s and will rise to $5,734.6 in 2030 – which will surpass India’s par
capita income that is projected to grow less than three times and thereby edge up to $5,423.4.
By 2030, the research projects India to become the world’s fourth largest economy (measured by market exchange rates) and
Bangladesh to become the 23rd largest. The two countries together will account for about 20 percent of the global population by
2030, according to the United Nations.
Meeting the Challenges Head On
Single-Digit Deposit/Lending Rates
During the mid-year, Bangladesh Association of Banks (BAB) passed a resolution wherein all member banks were invited to reset the
deposit and lending rates at 6% and 9% respectively. Accordingly, both public and private banks decided to lower lending and deposit
rates to single digits from July 1, 2018. This resulted a ripple effect that created a deposit crunch amongst the member banks. NRBC
had to, unfortunately, go through the same turbulent period as well. However, this year the interest rates are likely to escalate due
to higher credit demand from the private sector amid business expansion activities after the election.
Downscaling the Advance Deposit Ratio
Advance Deposit Ra�o of Banks
During the period of 2008 to 2018 in a span of 10 years, the Advance Deposit Ratio
of Banks have fluctuated a lot. In 2018, Bangladesh Bank issued an instruction 80 79
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to keep the ADR within 83.5%. In line with BB regulations, we have realigned our
78
strategies to work on full force to keep Advance Deposit Ratio within a tolerable 78
78
limit. We had managed to bring down the AD Ratio from 92.18 percent to 86.02
77
percent from that of the years 2017 and 2018 respectively. With a relentless 76
76
pursuit in July 2018, we reduced the ADR to 83.50 percent on experimental basis
for approaching BASEL III implementation by January 1, 2020. 74
Change in CRR, SLR
c Percent
74 75 73
73
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d.
The policy measures taken by Bangladesh Bank in 2018 such as reducing CRR by 72
72
one percentage point and set at 5.5 percent, the repo rate, which is the rate at
which banks take loans from the central bank was lowered to 6 percent from 6.75 70
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percent and introducing repo tenors up to 28 days eased liquidity tightening.

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CRR & SLR position - NRBC Bank 2017 2018 66

2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Mandatory Limit for CRR in % 6.50% 5.50%
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Maintained Limit for CRR in % 6.61% 5.83% Source: Bangladesh Bank
Mandatory Limit for SLR in % 13.00% 13.00% All the banks are to maintain the mandatory CRR & SLR as per
Maintained Limit for SLR in % 14.76% 14.03% statutory requirement. NRBC Bank has so far maintained the ratio
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with proficiency and we hope to continue this trend in the coming

years as well.
Probing into the e-Tender Business and BRTA Bill Collection
As part of the Government’s agenda for Digital Bangladesh, the e-GP system is developed as a web portal from where and through
which procuring agencies and entities will perform their procurement related activities. Otherwise known as e-Tendering system, it is
widely used paperless procurement of goods and services from intended stakeholders by government organizations. As per research
conducted by A2i (Access to Information) in early 2018, an incredible number of 95% stakeholders expressed satisfaction on the
e-tendering system despite some infrastructural disadvantages and security concerns.
In 2018, we have already introduced the e-GP system in 58 of our branches nationwide wherein 41 of the branches actively
participated. Our branches generated a significant flow of income with the e-GP services throughout the year, while the highest
point was reached in October-18 with BDT 3.73 crore. By the end of the year, we generated an accumulated profit of BDT 10.88 crore.
We have also set up BRTA Bill collection systems in both the branches and specialized booths nationwide. While BRTA Fees and
charges collections were only made through branches in 2017, since 2018 we have collected an amount of BDT 430.17 crore through
our BRTA Collection Booths alone. As a result, our total BRTA Fees and Charges collections have increased from BDT 356.47 crore
to BDT 787.91 crore in a span of 2017 to 2018. Apart from BRTA and e-GP, NRBC is also partnered to provide services to DESCO,
DPDC, PDB, WASA, Titas, BGMC, BPC, Padma Oil, Meghna Oil and other various government and autonomous organizations. Apart
from this, we are also lending a hand toward development of Rooppur Nuclear Power Plant – a joint venture project of Bangladesh
and Russia toward which our country is looking forward to witness the dawn of a new horizon. A special Branch of NRBC Bank has

already been set up adjacent to the site as well. To cater to the growing need of the expatriates and foreign companies working at
Rooppur Nuclear Power Plant, Bangladesh Bank has also granted Authorized Dealer (AD) license to our Rooppur Branch, which is
unprecedented. Therefore, we are happy to report that we enjoy tremendous support of regulators in these strategic initiatives.
Focus on Low Cost/No Cost Deposits
Traditionally, like most of the banks operating in Bangladesh, NRBC Deposit Mix
was also heavily reliant on high cost deposits in the previous years.
However, as we planned and gave more focus on low/no cost 100%
deposits in early 2018, throughout the year we gradually improved
80% 70.92%
our deposit mix. Bit by bit, we increased our concentration on
procuring low cost and no cost deposits. We gave up a large amount 60% 71.04%
of high cost large ticket deposits and replaced those with smaller 60.00%
40%
ticket low cost one and thereby enhanced our granularity in deposit
mix. In 2019, we are already off to a better start and things are 20% 19.78%
21.62%
28.00%
looking up. 9.30%
0% 7.34%
Leaning toward Retail 12.00%
2017 (Actual)
2018 (Actual)
The business strategy of NRBC Bank is to expand consumer banking 2019 (Proposed)
business with a focus on the small and medium enterprises segment.
With the rising per capita income of our population, prospect of No Cost Low Cost High Cost
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retail business outside mega cities are also expanding and we target
to cater to that market.
Since 2018, we are focusing on retail and SME business. We have
3.05% 2.59% 2.15% 2.50% 3.00% a long way to go in terms of strengthening our position in retail
100% 7.10% 7.43%
12.00% 14.00% 16.00% banking. We are providing a number of offers and services to
90%
80%
70%
18.10% 24.50%
30.00%
c 35.00%
40.00%
strengthen our retail loans and advance base. Gradually we are
shifting our focus from corporate loans to retail and SME for this
year and onwards.
d.
60% 71.75%
50% 65.48%
40% 55.85%
We are moving ahead and plan to introduce new products
48.50%
30%
41.00%
considering the market demand. In order to make way through
20% the intense market competition, we have rationalized the annual
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10%
interest rate while focusing on introducing new discount partners
0%
with both the top-notch and up and coming shopping outlets.
2017 2018 2019 2020 2021
Services such as Card Cheque, Loyalty program, Online Collection
(Actual) (Actual) (Proposed) (Proposed) (Proposed)
module, SMS marketing, 0% SimpleBuy Program, Credit card
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Corporate SME Retail Agricultural payment through NRBC Mobile App are being offered to NRBC
Cardholders round the year. We are also looking forward to provide
services like ATM & Internet Banking real time fund transfer with
NPSB, Credit card payment through iPay & Bkash.
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Arrest NPL
Rate of Classified Loan (NPL)
According to Bangladesh Bank Financial Health Grading Score Sheet,
the acceptable ratio of NPL for banks is within 3 percent. Meanwhile, Year NPL NPL Amount Required
our Bank was hit with loan irregularities soon after its launch in Percentage in Crore NPL Ratio as
2013. On the other hand, the entire banking industry was also going per BBFHGSS
through a rough patch with the growth of NPL hit 11.45 percent 2018 2.94% BDT 141.44 0% - 3%
in September 2018. However, with the support from the Board of
2019 Below 2.00% -
Directors, empowered
(proposed)
Management and
Opera�ng Profit Growth (Fig in Crore Taka)
hardworking employees,
225.00
NRBC intensified efforts to cut bad loans. The Bank has made great strides in improving
220.00 224.99 the loan recovery in the last year resulting in 2.94 percent of NPL by end of December.
215.00
While this was within the desired limit, in the year 2019 all out efforts will be taken to
210.00
205.00 lower it further. However, I must put a note of caution that our previous relaxed and
200.00 201.75 aggressive credit culture in the past has already created enormous pressure on our loan
195.00
190.00
200.37
portfolio, particularly some large creditor, which will continue to challenge our NPL ratio
185.00
2017 (Actual) 2018 (Actual) 2019 (Proposed)
for some time.
A Profit Growth that Sustains
NRBC believes in sustainable growth in all aspects which also includes in terms of profit. We are of the mindset that instead of
rushing toward profit, we can make our standing stronger if we look for sustainability. In 2017, NRBC’s operating profit stood at BDT
200.37 crore. By December 31, 2018, the figure rose to BDT 201.75 crore, which although may not seem as impressive at a first
NRBC Bank 25
glance, in reality it was the best possible figures we could have achieved given the most difficult circumstances. NRBC Bank faced
tremendous negative media exposure last year which made our business extremely critical. However, we weathered the storm with
the full support and guidance from the Board and further strengthened our position within the industry by end of year. Throughout
2018, we had to go against the odds of the ever-rising waves of NPL that slowed down our progress. Thankfully, we have already
reigned in on the NPL factor and we are hopeful in 2019 we will continue our growth as well.
Double in Three
At NRBC, we think ahead of time and this year we adopted a 03-year plan to
ensure sustainable growth in all aspects of deposit, advance, import, export &
profit by controlling NPL at acceptable level. We had a projection to make all
Loans & Advances Growth
these aspects double in number
10,000.00 9,000.00
within next three years i.e. by 7,250.00
2021. 8,000.00
Deposit Growth
5,824.26
6,000.00 4,295.06
4,811.78
From 2017 to 2018 there was an 4,000.00

11,000.00
12,000.00 upward scale in the deposits and 2,000.00
10,000.00 8,500.00 loans & advances growth. Our 0.00
8,000.00 5,593.99
7,000.66 deposits stood at BDT 5,593.99 2017 2018 2019 2020 2021
6,000.00 4,711.82 crore and advances stood at
4,000.00 BDT 4,811.78 crore at end of
2,000.00 December 2018. We want to gradually increase the growth and expect to hit the mark
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0.00 of BDT 11,000.00 crore in deposits and BDT 9,000.00 crore in loans and advances
2017 2018 2019 2020 2021 assuming normal market conditions prevails. We are hoping this increasing trend will
be consistent for upcoming years.
Similar to the deposits and loans & advances, our import and export business have increased to a significant level. Our import and
export business grew as well standing at BDT 2,622.99 crore and BDT 2,509.19 c
crore respectively by the end of
December 2018. In 2017 and
Export Growth
Import Growth
d.
2018, the import and export
5,500.00
5,800.00
business continued its upscale 6,000.00
6,000.00 movement which is likely to head 5,000.00 4,200.00
5,000.00 4,500.00 upwards in the coming years. 4,000.00
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3.400.00
4,000.00 3,500.00
2,509.19
3,000.00 2,245.97
2,622.99
3,000.00 2,478.65
2,000.00
2,000.00
1,000.00
1,000.00
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0.00
0.00
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
A Culture Thriving on Meritocracy and Transparency

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In NRBC, we envisioned to develop an organization creating a culture that thrives on meritocracy and transparency in case of
recruitment, selection, hiring, training, performance appraisal and rewarding of our human resources. Like we did in the previous
year, we have followed through a comprehensive system to ensure employees are judged solely by their efforts, skills, abilities, and
performance, regardless of gender, race, class, origin. We want to ensure that excellent performers are rewarded with accelerated
career growth. One of our long-term goals behind practicing meritocracy in the Bank is to create future leaders.
Almost every year we hire a lot of
Area 2017 2018 Change in %
fresh talents as MTOs, developing
Total 617 Total 970 their Knowledge, Skill and Attitude
Manpower 58%
Male 501 Female 116 Male 761 Female 209 (KSA) through training, nurture their
leadership quality in order to build
Total 80 Total 201 them as future leader. We are also
Recruitment Experienced Experienced 152% aiming to implement KPI to measure
Fresher 79 Fresher 90 performance appraisal and to ensure
1 111
an effective compensation package.
NRBC’s Management Team is equipped
with people having wide array of expertise in multifarious sections of banking industry. We take pride in our expert workforce,
encourage teamwork which will eventually lead us to become stronger.
Brand Talk
This year we wanted to capitalize on how far we had come in respect of branding and further focused on
it in a rather unconventional way. “Probashir Shopno”, our brand statement holds us into a distinguished

position. Besides creating a distinctive image with the term NRB and accelerate regular inflow of foreign remittance, we have
targeted to reach out to the largest number of people across the country. In order to maximize geographical coverage along with
targeting the mass market we are offering our services at clients’ doorsteps through Agent points and Banking booths. NRBC Bank
as the sole collecting partner for BRTA for all government fees can boast 37 lacs users of BRTA at our doorstep throughout the year.
Moreover, we have 28 collection booths across the country in the BRTA premises, making our brand very much visible and reliable
name to millions of people. We will eventually expand these booths in all districts with partnership through BRTA. This way we are
following a visible branding strategy at the convenient location of our valuable clients. As of 2018, NRBC has 563 agent points all over
the country. We value our clients in a way that they do not need to come to us rather we would be ready to offer variety of products
and services near to them.
Implementation of BASEL III
NRBC Bank is determined to maintain the Capital to Risk Weighted Assets Ratio (CRAR) in line with the transitional arrangements for
Basel III implementation in Bangladesh. In the implementation towards Basel III, Bank is always on the lookout to follow the guidelines
of regulators, implement best industry practices to aptly address the variable factors and keep the risk exposure at minimum level
and capital requirement at adequate level. NRBC believes on strengthening risk management and control environment rather than
increasing capital to cover up the weak risk management. In assessing capital adequacy to support current and projected business
activities, the Bank follows the ‘asset based’ approach rather than ‘capital based’ approach.
NRBC has been generating most of its incremental capital from retained profit (stock dividend and statutory reserve transfer) to
support incremental growth of Risk Weighted Assets (RWA). Besides meeting regulatory capital requirement, the Bank maintains
adequate capital to absorb foreseen material risks.
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Therefore, the Bank’s CRAR was consistently within
regulatory limit during 2018. At the end of 2018,
CRAR of NRBC Bank was at a healthy level of 14.03%
(on solo basis) against of 11.875% (Minimum
Capital Requirement 10% +Capital conservation c
Buffer 1.875%) as prescribed by Bangladesh Bank..
Creating a Conducive Environment
d.
Coming out from the extremely critical media
exposure at the beginning of last year, NRBC Bank
strived through out the year to build a very effective
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and transparent dialogue with all its important

stakeholders, i.e. clients, regulators, peers,
suppliers, partners for credit and common people.
Our Honorable Chairman and our distinguished
Board and esteemed shareholders played the most
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crucial role in providing guidance and support

to continue positive atmosphere and win trust
of our stakeholders. As a result, we were able to
completely turn around and get some positive exposure from the press.
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Concluding Words
2018 began with our collective determination and focus, where we have articulated our goals and have gathered the resources to
meet them. The hard work of NRBC family has created a culture of which we can be proud. This is a culture based on a foundation of
ethics and execution, informed by our mission of enabling growth and economic progress across the nation and furthest corners of
our society. Like we did the year before, we will remain steadfast to our values as we serve our clients with sincerity and dedication.
As we have shown in 2018, our targets are achievable if we commit and we are committed to continuing to make steady progress
toward them every day throughout 2019.
We have faith in the strength of NRBC family for we believe together we can move forward with a greater purpose based on shared
experience.
Sincerely
Khondoker Rashed Maqsood

Managing Director & CEO
NRBC Bank 27
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B oard of D ir e ctor s
NRBC Bank 29
Mr. S M Parvez Tamal
Chairman
A qualified engineer, successful entrepreneur, philanthropist
and a visionary, Mr. Parvez Tamal is a young entrepreneur from
Bangladesh who is also a citizen of Russian Federation. He comes
from a valiant freedom fighter family that is also renowned
for its academic excellence. He is also the President of Russia
Bangladesh Chamber of Commerce and Industry, the General
Secretary of Bangabandhu Parishad, Russia and Member of
the General Body of Federation of Bangladesh Chambers of
Commerce and Industries (FBCCI).
Born on July 8, 1971, Mr. Tamal pursued Masters in Information
Technology and Statistics from Moscow State University of
Economics, Statistics and Informatics (MESI). He established
business in Finland as a logistic hub, after that invested in real
estate and other areas. He completed different courses as
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Business professional from the academy e.g. HP, Microsoft, IBM,
CISCO. From 2009, he started merging with Oldi Group which is
the market leader of whole IT sector in Russia.
Mr. Tamal is engaged in IT distribution, Real Estate Holdings,
Manufacturing of Household Product & Logistic consultations in
Russia. He is also engaged in other companies in EU and Russia
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related to manufacturing, branding of different products and
real estate business.
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Mr. Mohammad Shahid Islam (Papul), MP

Vice Chairman
Mr. Mohammad Shahid Islam (Papul), MP is the MD & CEO
of Marafie Kuwaitia Group with business in Kuwait, GCC, US
Military, United Nations, Government & Commercial contracts
internationally and in financial sector.
In December 2018, he was elected as the Member of
Parliament of Laxmipur-2 in the 11th Parliamentary Election
of Bangladesh

Mr. Abu Bakr Chowdhury
Director
Mr. Abu Bakr Chowdhury is the Sponsor Director and
Chairman of Baizid Group of Industries, who hails from a
respectable family of Chattogram and started manufacturing
of steel products since 1986. He is also a UAE resident. Due to
his vast experience and dynamic leadership Baizid Steel has
been turned into a most sophisticated re-rolling mill having
prestigious License of Tempcore from CRM Belgium. Linkage
Ms Billet manufacturing unit in the name of CSS Corp. (BD)
Ltd. And a new 25 mw capacity power plant and property
management in the name of ABC Marks Holdings Ltd. including
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General trading. Mr. Chowdhury is associated with various
trade bodies and social and educational institutions and
earned wide market reputation at home and abroad. He has
a very strong socio-cultural and socio-economic background.
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Mr. Rafikul Islam Mia Arzoo

Director
Mr. Rafikul Islam Mia Arzoo was born in Rajbari, Bangladesh. He
is a Russian citizen. He passed HSC from Notre Dame college in
1981. He did his M.Sc in Electrical Engineering from Georgian
Technical University in 1988. He is a successful businessman
having business in Finance, Real-estate, Dry-cleaning service.
He is a CIP. He is involved in different philanthropic activities.
He has been running a college, Kolimohar Mahabiddalaya
(EIIN # 113423) in his village Kolimohar, Pangsha, Rajbari
established in 2000. Mr. Arzoo is married and a proud father of
two daughters and a son.
NRBC Bank 31
Director
Mr. Mohammed Adnan Imam, a UK Citizen and CIP (NRB),
residing in London is a Fellow Chartered Certified Accountant
(FCCA). Having a successful career in Finance and Investment
Banking with world renowned Merrill Lynch Europe Plc. He is
the Managing Director of IPE Group – which is involved in Real
Estate and Private Equity in London and Dhaka, Technology
and Outsourcing, Textiles, RMG and Finance.
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Mr. Mohammed Oliur Rahman

Director
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Mr. Mohammed Oliur Rahman is a permanent resident

of Dubai, UAE and is engaged in the business of Retail,
Wholesales & Export of Fragrance, Perfumery, Cosmetic
products & Accessories in the names and styles of Al Haramain
Trading LLC, Dubai, UAE, Al Haramain Perfumes MFG & OUDH
Processing Industry LLC, Ajman, UAE, Al Haramain Perfumes
LLC, Dubai, UAE, Best in Fragrance, Hilton Tower, Makkah, KSA,
Noor Al Haramain LLC, Dubai, UAE and Al Haramain Hospital
Pvt. Ltd., Sylhet, Bangladesh. Mr. Rahman has a long successful
business career having an influential & respected personality
among the expatriate Bangladeshis in Dubai, UAE. He is deeply
involved in the welfare of the Bangladeshi community. Mr.
Rahman is a CIP and is also the recipient of the prestigious
Bangladesh Bank Award for 4 consecutive years from 2013 to
2016.

Mr. Loquit Ullah
Director
Mr. Loquit Ullah, an NRB & an Italian citizen, is engaged in

wholesale business since 1980. Mr. Loquit Ullah is Managing
Director of Store Alamin S.N.C., Rome, Italy.
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Mr. Mohammed Nazim

Director
Mr. Mohammed Nazim is a permanent resident of UAE.

Mr. Nazim is a graduate and is engaged in the cars Service
Business in U.A.E.
He is also Managing Director & CEO of Al Badar Real
Estate which is a leading company in real estate sector
of Ajman - U.A.E.
NRBC Bank 33
Dr. Nuran Nabi
Director
Dr. Nuran Nabi, a US citizen and an NRB, is a valiant Freedom
Fighter of Bangladesh Liberation War. He did his Honors and
Masters degrees from Dhaka University and obtained Ph.D
from Kyushu University, Japan. He was an accomplished
scientist at Colgate Palmolive Co., USA. He is a Board member
of the Plainsboro Free Public Library Foundation. He has a
strong socio-economic background. Dr. Nabi, a prolific writer,
has been awarded Bangla Academy Honorary Fellowship for
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his outstanding contribution to the literature on Bangladesh
liberation war. He is a Councilman of Plainsboro Township, NJ,
USA since 2007.
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Mr. Mohammed Manzurul Islam

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Director
Mr. Mohammed Manzurul Islam, a non-resident Bangladeshi
living in the United States, obtained BA (Honors) and MA
degrees from Dhaka University and MA from New York
University. He was a certified teacher in the New York City
Department of Education for 10 years. He is a Director, Editor-
in-Chief and CEO of Dhaka Bangla Channel (DBC) News – the
first 24/7 live Bangla news channel in Bangladesh. He is also
a Director of ATN News, another popular TV channel of the
country. An internationally known journalist, TV anchor and a
media personality, Mr. Islam was former associate broker of
Re/Max Universal, USA. He is also a very successful Real Estate
Businessman with a strong background in socio-political and
socio-economic affairs.

Mr. Abu Mohammad Saidur Rahman
Director
Bir Muktizoddah, Mr. Abu Mohammad Saidur Rahman - a
resident of United Arab Emirates, was born in February, 1951
in Barisal. He possesses an excellent academic background and
completed his Hon’s degree in 1972 and obtained his Masters
Degree in Mathematics with distinction in 1974 from the
University of Dhaka. He was a resident student of Sgt. Jahurul
Huq Hall and actively participated in the student movements
and mass revolution in 1969 and joined the liberation war of
1971. Mr. Rahman joined the Bangladesh Civil Service in 1977
and performed diverse activities in the development and
regulatory Ministries viz. Planning, Agriculture and Forest,
Relief and Rehabilitation, Home Affairs, and Finance. He was
also involved in various National level activities, namely,
approval and monitoring of relief and rehabilitation activities
of NGOs worked for the flood victims of 1988; National Pay
Commission 1990 and conducted Bangladesh Agricultural
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Census and Bangladesh Economic Census as Project Director.
He was also the Director of the Statistical training institute in
BBS. He attended various training, workshop and seminars
at home and abroad. He visited India, USA, Canada, Japan,
Hong Kong, Thailand, Malaysia, Switzerland, Austria, France,
Germany, Australia and Nepal. He is blessed with one daughter
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and two sons namely, Tushar Iqbal Rahman - a permanent
resident of Germany and Faisal Rahman Tamal - a permanent
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resident of Australia.
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Mr. AKM Mostafizur Rahman

Director
A.K.M Mostafizur Rahman was born in Barisal, Bangladesh
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and resident of United Arab Emirates. He has obtained

B.S.S(Hon’s) and M.S.S Degree in Economics from the
University of Dhaka. He is a successful Businessman and
has strong socio economic & socio culture development
background. He is the Chairman of Ezy Fintech Ltd, Richway
Ltd, URO TEX Ltd, Pandemic Group, Imperial Maisara
International FZC, NAVA IT Consultancy - UAE & Dr. Tamanna
Mostafizur Foundation. He received several training on
financial rules & regulations and management from home
and abroad. Investment to creative, innovative enterprises,
especially young & women empowerment. Mr. Rahman
achieved national awards Jainul Abedin Gold Award,
Sadinata Sangsad Award, Index Kagoj-Kalam Business
Award & Sritir SIDR for outstanding contribution on Health
& Nutrition sector, Education Program, Poverty Reduction
& Socio Economic Development. Mr. Rahman has married
to Dr. Tamanna and blessed with two daughters – Tarisha &
Ornisha.
NRBC Bank 35
Khondoker Rashed Maqsood
A pioneer of transaction banking in Bangladesh, Mr. Maqsood
was the Managing Director & Citi Country Officer for CitiBank
N.A. Bangladesh for over 6 years. Prior to that, he was working
at Citi Indonesia as Managing Director for global transaction
services. Mr. Maqsood has 25 years of outstanding banking
experience at home and abroad with CitiBank N.A. and
American Express Bank.
In his long career he worked at CitiBank N.A. for more than 22
years in different positions since 1995. Mr. Maqsood comes
with vast experience in Corporate & Correspondent Banking,
Private Equity, M&A, Back Stopped Facility, Debt Restructuring,
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International Bond, and Securities & Funds Services. He
gives utmost importance to leadership development and
meritocracy for organizational efficiency. He is a strong
proponent of inclusive financing and innovative CSR models.
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Spon s or s
Engr. Farasath Ali Mr. Mohammed Adnan Imam, FCCA Mr. Fahad Madani Islam
Dr. Toufique Rahman Chowdhury Dr. Nizam Mohammad Meah Mr. Shamim Ali
Mr. Tanwir M O Rahman Chowdhury Dr. Nuran Nabi Mr. Shakawat Ali
Mr. ABM Abdul Mannan Mrs. Kaniz Farzana Rashed Mr. Mohammed Shofiqul Islam
Mr. Mohammed Oliur Rahman Dr. Rafiqul Islam Khan Mr. Nahid Ahmed Chowdhury
Mr. Mohammed Enayet Hossain Dr. Shahanara Begum Ali Mr. Tohel Ahmed
Mr. Md. Amir Hossain Mr. Sarwar Zaman Chaudri Mr. Azadul Haq
Mr. Abu Mohammad Tushar Iqbal Rahman Mr. Mohammad Zakaria Khan
Mr. Firoz Haider Khan Mr. Mohammad Iqbal Rashed
Mr. Shabbir Ahmed Mubin
Mrs. Kamrun Nahar Sakhi Mr. Mohammed Jahangir Alam
Mr. Izaharul Islam Halder
Mr. Abu Bakr Chowdhury Mrs. Nazni Mansur
Mr. Mostafisur Prince Rahman
Mr. Mohammad Shahid Islam, MP Mr. Anwar Hossain
Mr. Aziz U Ahmad
Mr. Loquit Ullah Mr. Mohammed Manzurul Islam Mr. Sunahwar Ali
Mr. S M Parvez Tamal Mr. Mohammed Jamal Uddin Mr. Mohammed Sabbir Ahmed
Mr. Rafikul Islam Mia Arzoo Mr. Faruk Ali Mr. Mohammad Kashem
Mr. Mohammed Nazim Mr. Zulfiker Alim Mr. Mohammed Tanvir Ahmed
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Engr. Syed Munsif Ali Mrs. Ferdoushe Begum Dr. Abul M. Ibrahim
Mrs. Shamimatun Nasim Mr. Mohammed Ashraf Ali Mr. S.M. Gulam Robbani Chowdhury
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Sponsors
NRBC Bank 37
Sponsors
Engr. Farasath Ali
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Dr. Toufique Rahman Chowdhury Mr. Tanwir M O Rahman Chowdhury Mr. ABM Abdul Mannan
ab
nk
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Mr. Mohammed Oliur Rahman Mr. Mohammed Enayet Hossain Mr. Md. Amir Hossain
Mr. Abu Mohammad Tushar Iqbal Rahman Mr. Firoz Haider Khan Mrs. Kamrun Nahar Sakhi

Mr. Abu Bakr Chowdhury Mr. Mohammad Shahid Islam, MP Mr. Loquit Ullah
c om
d.
Mr. S M Parvez Tamal Mr. Rafikul Islam Mia Arzoo Mr. Mohammed Nazim
ab
nk
la
Engr. Syed Munsif Ali Mrs. Shamimatun Nasim Mr. Mohammed Adnan Imam, FCCA
Dr. Nizam Mohammad Meah Dr. Nuran Nabi Mrs. Kaniz Farzana Rashed
NRBC Bank 39
Sponsors
Dr. Rafiqul Islam Khan Dr. Shahanara Begum Ali Mr. Sarwar Zaman Chaudri
c om
d.
Mr. Mohammad Zakaria Khan Mr. Shabbir Ahmed Mubin Mr. Izaharul Islam Halder
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Mr. Mostafisur Prince Rahman Mr. Aziz U Ahmad Mr. Mohammed Manzurul Islam
Mr. Mohammed Jamal Uddin Mr. Faruk Ali Mr. Zulfiker Alim

Mrs. Ferdoushe Begum Mr. Mohammed Ashraf Ali Mr. Fahad Madani Islam
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d.
Mr. Shamim Ali Mr. Shakawat Ali Mr. Mohammed Shofiqul Islam
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Mr. Nahid Ahmed Chowdhury Mr. Tohel Ahmed Mr. Azadul Haq
Mr. Mohammad Iqbal Rashed Mr. Mohammed Jahangir Alam Mrs. Nazni Mansur
NRBC Bank 41
Sponsors
Mr. Anwar Hossain Mr. Sunahwar Ali Mr. Mohammed Sabbir Ahmed
Mr. Mohammad Kashem

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Mr. Mohammed Tanvir Ahmed
om Dr. Abul M. Ibrahim
d.
ab
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Mr. S.M. Gulam Robbani Chowdhury

Shareholders
Mr. Moinuddin Irteeza Sekander Mr. Mohammed Emadur Rahman Mr. Mohammed Ashfaqur Rahman
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d.
Mr. A K M Mostafizur Rahman Mr. Mohammad Ali Chowdhury Mr. Abu Mohammad Saidur Rahman
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Mr. Md. Aktarul Islam Mr. Mohammed Mahtabur Rahman Mrs. Salina Islam, MP
Mrs. Nadia Momin Imam Mr. Arif Sikder Mr. Mohammed Ehsanur Rahman
NRBC Bank 43
om
c
d.
ab
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d.
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Executive Committee
Committees Audit Committee
of Risk Management Committee
NRBC Bank Asset-Liability Committee
Management Committee
NRBC Bank 45
EXECUTIVE
COMMITT
EE
Chairman
c om
d.
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Mr. Mohammad Shahid Islam, MP Mr. Mohammed Oliur Rahman Mr. Abu Bakr Chowdhury
Member Member Member
nk
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Mr. Loquit Ullah

Member
AUDIT COMMITT
EE
Mr. Rafikul Islam Mia Arzoo
Chairman
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Mr. S M Parvez Tamal Mr. Mohammed Nazim Mr. Mohammed Manzurul Islam
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RISK MANAGEMENT
COMMITT
EE
Mr. S M Parvez Tamal
Chairman
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d.
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Mr. Mohammed Adnan Imam, FCCA Mr. Mohammed Nazim Dr. Nuran Nabi
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Core
Management
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From the left side: Mr. Khondoker Rashed Maqsood (Managing Director & CEO), Mr. Kazi Md. Talha (Deputy Managing
d.
Director) and Mr. Md. Mukhter Hossain (Deputy Managing Director).
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Asset Liability
Committee
nk
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From the left side: Mr. Md. Abdul Gofur Raana (Member), Mr. Md. Mynul Hossain Kabir (Member), Mr. Tanusree
Mitra (Member), Mr. Harunur Rashid (Member Secretary), Mr. Md. Mukhter Hossain (Member), Mr. Khondoker Rashed
Maqsood (Chairman), Mr. Kazi Md. Talha (Member), Mr. Md. Azim Uddin (Member), Mr. Kabir Ahmed (Member) and
Mr. Hafiz Imroz Mahmud (Member).
Management
Committee (MANCOM)
la
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ab
d.
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From the left side (Sitting): Mr. Hafiz Imroz Mahmud (Member), Mr. Kabir Ahmed (Member), Mr. Syed Mahbubul Haq (Member), Mr. Md. Mukhter Hossain (Member),
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Mr. Khondoker Rashed Maqsood (Chairman), Mr. Kazi Md. Talha (Member), Mr. Md. Azim Uddin (Member), Mr. Muhammad Hajjaj Bin Mahfooz (Member), and Mr. Harunur
Rashid (Member Secretary).
From the left side (Standing ): Mr. Md. Mynul Hossain Kabir (Member), Mr. A S M Maruf Uddin Kamal (Member), Mr. Md. Ruhul Amin (Member), Mr. Md. Anisur Rahman
(Member), Mr. Didarul Haque Miah (Member), Mr. Md. Mozammel Hossain (Member), Mr. Mohammad Mostahaque (Member), Mr. Tansuree Mitra (Member), Major Md
Parvez Hossain (Retd) (Member), Mr. Md. Haider Akhlaque (Member), Mr. Md. Abdullah Al Mamun (Member) and Mr. A I M Mostafa (Member).
RANGPUR
BRANCH NETWORK
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RAJSHAHI MYMENSINGH SYLHET
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DHAKA
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KHULNA
CHITTAGONG
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BARISAL
NRBC Bank 51
Dhaka Divis ion
Principal Branch Gulshan Branch

114, Motijheel C/A, Dhaka-1000 Silver Tower, 52, Gulshan Avenue,
PABX: 88 029573422-30, Gulshan -1 , Dhaka
Fax: 88 02 9588 323 Phone: 9897531-32, Fax: +880-2-8834703
Cell : 01955 502 101, 01678 433 101 Cell : 019 555 02 102, 01678 433 102
E Mail : prb@nrbcommercialbank.com E Mail : gulshan@nrbcommercialbank.com
HOB: Mr. Hajjaj Bin Mahfooz, SEVP HOB: Mr. A K M Rabiul Islam, EVP
Ruhitpur Branch Mawna Branch

Rahim Noor Skyview Tower Hazi Abdus Salam Tower
Ruhitpur Bazar, Keraniganj,Dhaka Dhaka- Mymensingh Road
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PABX :+88-02-9573422-30, Fax: 9573421 Mawna, Sreepur, Gazipur
Cell : 019 555 02 103, 01678 433 103 Cell : 019 555 02 104, 01678 433 104
E Mail : ruhitpur@nrbcommercialbank.com E Mail : mawna@nrbcommercialbank.com
HOB: Mr. M M Moshiur Rahman, FVP HOB: Mr. Mohammad Abul Kalam Azad, PO
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d.
Chinishpur Branch
Chinishpur, Shamsuddin Bhuiyan Plaza
(Jailkhana Morh) Narsingdi Hemayetpur Branch
PABX : +88 02 945 2481-82 225 Singair Road, Hemayetpur, Savar, Dhaka
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Fax:+88 02 945 2483 PABX: 7745151, Fax: 7745152

Cell : 019 555 02 106, 01678 433 106 Cell : 019 555 02 107, 01678 433 107
E Mail :chinishpur@nrbcommercialbank.com E Mail : hemayetpur@nrbcommercialbank.com
HOB: Md. Abdullah-AL-Wadud, FAVP HOB: Mr. Md. Rahat Siddique, PO
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Uttara Branch
Masum Plaza Board Bazar Branch
House # 13, Road # 15,Robindra Sarany China Town Bangladesh
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Sector#3 ,Uttara, Dhaka 84 Kalameswar, Ward No.-35, Zone -02

PABX: +88-02-58950025, 8950192, Board Bazar, Joydebpur, Gazipur
FAX-8950126 PABX: 9291831, 9291834
Cell : 019 555 02 108, 01678433 108 Cell : 019 555 02 109, 01678 433 109
E Mail : uttara@nrbcommercialbank.com E Mail : Boardbazar@nrbcommercialbank.com
HOB: Mr. Md. Delwar Hossain, EVP HOB: Mr. Md. Mamun Hossain, AVP
Dhanmondi Branch
Mir Nur Square ,House# 43(New)
Mograpara Branch Road #2-A(New), Satmasjid Road
Nurul Islam Plaza Habibpur (Mograpara) Dhanmondi R/A, Dhaka
Mograpara, Sonargaon, Narayanganj PABX: 9671713, 9671786, 9671798
Cell : 019 555 02 110, 01678 433 110 Cell : 019 555 02 111, 01678 433 111
E Mail : mograpara@nrbcommercialbank.com E Mail : dhanmondi@nrbcommercialbank.com
HOB: Mr. Md. Tareq, PO HOB: Mr. Abdul Awoal Mia, VP

Aganagar Branch
Din Complex, 1st floor Kodomtoli Morh, Gorai Branch
Shuvatta Keraniganj, Dhaka, Mir Milton Complex
PABX : 7764581-82 Gorai, Mirzapur, Tangail
Cell : 019 555 02 112, 01678 433 112 Cell : 019 555 02 113, 01678433113
E Mail : aganagar@nrbcommercialbank.com E Mail : gorai@nrbcommercialbank.com
HOB: Mr. Md. Arifur Rahman, FVP HOB: Mr. Saiful Islam Rubel, PO
Panchabati Branch Zirabo Branch

Mamun Super Market (Panchabati) Fuad Complex, Zirabo Bazar, Taibpur
Harihorpara, Enayetnagar Ashulia, Savar, Dhaka
Fatulla, Narayanganj, PABX: 7670461-2 PABX: 7792671-2
Cell : 019 555 02 114, 01678433114 Cell : 019 555 02 115 , 01678 433 115
E Mail : panchabati@nrbcommercialbank.com E Mail : zirabo@nrbcommercialbank.com
HOB: Mr. Md. Solaiman Hossain, AVP HOB: Mr. Muhammad Shamim Ahmed Shahin, PO
Nabinagar Branch
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Unity Trade Contre ,Dendabor, Savar
Cantonment Ashulia, Savar, Dhaka om
Banani Branch
“Rosebud”, House# 155, Road# 11 & 13/B,
Block # E, Word#7, Banani, Dhaka-1213
d.
PABX: 7792673-4 Pabx- 982 2396-7, Fax : 982 2364
Cell : 019 555 02 117, 01678 433 117 Cell : 019 555 02 121, 01678 433 121
E Mail : nabinagar@nrbcommercialbank.com E Mail : banani@nrbcommercialbank.com
HOB: Mr. Md Faisal Mahmud, FAVP HOB: Mr. Md. Kabir Hossain, EVP
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Ekuria Branch
Italy Tower (1st & 2nd floor) Zirani Bazar Branch
Hasnabad, Keranigonj, Dhaka-1311 College Road, Zirani Bazar,
Tel: 776 2495 & 776 2390, BKSP, PS.Ashulia, Dhaka
Cell : 019 555 02 123, 01678 433123 Cell : 019 555 02 127, 01678 433 127
E Mail : ekuria@nrbcommercialbank.com E mail: ziranibazar@nrbcommercialbank.com
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HOB: Mr. Mohammad Abdus Shobhan, AVP HOB: Mr. Mohammad Sultan Chowdhury, AVP
Narayanganj Branch Mirpur Branch

148, Bangabandhu Road, Word#14 Zone Tower, 128, Rokeya Sarani
Narayanganj Sadar, Narayanganj Mirpur, Dhaka
PABX: 7632289 PABX:9032375-6
Cell : 019 555 02 128, 01678 433 128 Cell : 019 555 02 129, 01678 433 129
E-mail: narayangonj@nrbcommercialbank.com E-mail: mirpur@nrbcommercialbank.com
HOB: Mr. Sayed Ahmed, FVP HOB: Mr. Md. Shafiul Azam, FVP
Harirampur Branch Nayabazar Branch

Sohel Market (1st Floor) Holding # 31, Road : Nawab Yousuf Road,
Sonargaon Janapath Road Ward# 35, Kotawali Dhaka.
Khalpur, Uttara, Dhaka-1230 PABX: 57396626
Cell : 019 555 02 133, 01678 433 133 Cell: 019 555 02 139, 01678 433 139
Email: harirampur@nrbcommercialbank.com Email: nayabazar@nrbcommercialbank.com
HOB: Mr. Habibur Rahman Khan,FVP HOB: Mr. Hasnat Reza Mohibbul Alam, VP
NRBC Bank 53
Bhulta Branch
Salam Mansion, Mir Market Madhobdi Branch
Golakandail Union, Rupganj NS Tower (Borhan Market),
Bhulta, Narayanganj PO & PS.Madhobdi , Norshingdi.
Cell: 01955 502 140, 01678 433 140 Cell: 019 555 02 142, 01678 433 142
Email: bhulta@nrbcommercialbank.com Email:madhobdi@nrbcommercialbank.com
HOB: Md. Delower Hossain, AVP HOB: Mr. Md. Lalon Sarwar, AVP
Hatirpool Branch
Ahsan Trade Center
15/1, Paribagh, Shah Saheb Road,
Bhuigar Branch Hatirpool, Dhaka-1000.
Bhuigar, Fatulla, Narayanganj PABX: 02-9663205, 02-9666785
Cell: 01955 502 143, 01678 433 143 Cell: 01955 502 144, 01678 433 144
Email: bhuigar@nrbcommercialbank.com Email: hatirpul@nrbcommercialbank.com
HOB: Mr. Md. Azharul Islam, VP HOB: Mr. Md. Nasimul Kabir, FVP
Charabag Branch
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Charabag Bus Stand, Ashulia, Dhaka
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Gazipur Chowrasta Branch
Shapla Mansion,
Gazipur Chowrasta ,Gazipur
Cell: 019 555 02 147, 01678 433 147
d.
Cell: 019 555 02 145, 01678 433 145 Email: gazipurchowrasta@
Email: charabag@nrbcommercialbank.com nrbcommercialbank.com
HOB: Mr. Md. Harun-Ur-Rashid Khan, PO HOB: Mr. Mohammad Shahidul Islam, FVP
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Dhanmondi Mohila Branch

Jebun Archade, Road # 16 (New),
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27 (Old) , PS.Dhanmondi,
Word# 15 (Beside Rapa Plaza), Araihajar Branch
Dhanmondi, Dhaka-1205 , Bangladesh Dubai Plaza, Holding No.- 866
Cell: 019 555 02 151, 01678 433 151 Araihajar, Narayanganj
Email: dhanmondi.mohila@ Cell : 01955502156, 01678433156
nrbcommercialbank.com E Mail : araihajar@nrbcommercialbank.com
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HOB: Ms.Saila Satter, FVP HOB: Mr. Kachi Sikder, PO
Bandura Branch
Nur Uddin Plaza, Puraton Bandura, Tongi Branch
7.No.Bandura Union Morium Mansion, Holding No.52
Upozila: Nababganj Tongi Bazar, Tongi
Dist: Dhaka. Dist: Gazipur
Cell : 01955502157, 01678433157 Cell : 01955502158, 01678433158
E Mail : bandura@nrbcommercialbank.com E Mail : tongi@nrbcommercialbank.com
HOB: Mr. Md. Sharif Uddin, SEO HOB: Mr. Md. Monirul Islam, FVP
Bhairab Branch Imamganj Branch

Helal Tower, Bangabandhu Sarani Lily Mansion, Holding#36
House#1333/5, Word No.02 Roy Iswar Chandra Shill Bahadur Street
Bhairab Bazar, Bhairab Word # 30, PS. Chawkbazar
District: Kishoreganj Dist: Dhaka,
Cell : 01955502160, 01678433160 Cell : 01955502153, 01678 433 153
E Mail : bhairab@nrbcommercialbank.com E Mail : imamganj@nrbcommercialbank.com
HOB: Mr Md. Elias Uddin,PO HOB: Mr. Muklessur Rahman, AVP

Gopalgonj Branch Mirpur -12 Branch
Siraj Tower, Holding# 96, Ward#05, Haji Kudrat Ali Mollah Super Market, 1
Gopalgonj Pourasava, Gopalgonj Sadar, Harun Mollah Road, Pallabi, Mirpur-12,
Gopalgonj Dhaka
Cell : 019 555 02 162, 01678 433162 Cell : 019 555 02 167, 01678 433167
E Mail : gopalgonj@nrbcommercialbank.com E Mail : mirpur12@nrbcommercialbank.com
HOB: Mr. Md. Anisur Rahman, FVP HOB: Mr Md. Ibrahim Khalil Ullah, FAVP
Chattogram Divis ion
Agrabad Branch
Quaderi Chamber, 37, Agrabad C/A, O R Nizam Road Branch
Chittagong Atlanta Trade Centre, GEC Morh, O R
Tel:+88 031-2521702-04, Nizam Road, Chittagong, PABX 031-612413,
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Fax:+88 031-2521706, 612866,
Cell : 019 555 02 105, 01678 433 105 Cell : 019 555 02 118, 01678 433 118
E Mail : agrabad@nrbcommercialbank.com E Mail : ornizam@nrbcommercialbank.com
HOB: Mr. Md. Joynal Abedin, SVP HOB: Mr. Chowdhury Mohiuddin, VP
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d.
Chatkhil Branch
Jonaki Super Market Chatkhil Chandraganj Branch
Pourosova, Post: Chatkhil, Dist: Noakhali Dada Bhai Plaza, Chandraganj Bazar,
Tel : 0322 75357-9 Chandraganj, Lakshmipur
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Cell : 019 555 02 124, 01678 433 124 Cell : 019 555 02 125, 01678 433 125
E Mail : chatkhil@nrbcommercialbank.com E Mail : chandraganj@nrbcommercialbank.com
HOB: Mr. Sakhawat Hossain, AVP HOB: Mr. Md Abdul Quddus Patwary, FAVP
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Raozan Branch
Borodighirpar Branch
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Firoj Tower, Ramjan Ali Chowdhury Hat

Haji Raza Mia Market Chikon Dondi, PS.Raozan, Dist-Chittagong
Hathazari, Chittagong, Tell : 031-2580 407-8 PABX: 030265
Cell : 019 555 02 126, 01678 433 126 Cell : 019 555 02 132, 01678 433 132
E Mail : bordighirpar@ nrbcommercialbank.com E-mail : raozan@nrbcommercialbank.com
HOB: Mr. Sujan kanti Das, FAVP HOB: Mr. Md. Naimul Hasan, PO
Mainamati Branch
Mainamati Senakalyan Market Jubilee Road Branch
Nischintapur, PS.Adarsha Sadar 9/A, Jublee Road, PS.Kotoali, Chittagong.
Union #2 Durgapur (north), Dist.Comilla PABX: 0302656410-11
E-mail: mainamoti@nrbcommercialbank.com Cell: 019 555 02 137, 01678 433 137
Cell: 01955 502 134, 01678 433 134 Email: jubileeroad@nrbcommercialbank.com
HOB: Mr. A.K.M. Nazmul Hasan, AVP HOB: Mr. Praduyth Bikash Chowdhury, FVP
NRBC Bank 55
Chandina Branch
Feni Branch Hazi Ali Mansion, Holding No.1304 ,
Holding No.180/6, Latu Mia Complex , SSK PS.Chandina, Word No: 05,
Road, Ward # 10, PS.Feni , District : Feni District : Comilla
Cell: 01955 502 149, 01678 433 149 Cell: 019 555 02 150, 01678 433 150
Email: feni@nrbcommercialbank.com Email:chandina@nrbcommercialbank.com
HOB: Mr. Kazi Mohammad Ziaul Karim, FAVP HOB: Mr. Md. Kamrul Hasan, FAVP
Laksam Branch
Matlab Branch Hazi Moksad Ali Tower
N.A.M Tower, Holding No.465 Holding No.1603, Word No.04
Ward No.03, Upozila: Matlab Thana: Laksam
Dist: Chandpur Dist: Comilla
Cell : 01955502154, 01678 433 154 Cell : 01955502155, 01678 433 155
E Mail : matlab@nrbcommercialbank.com E Mail : laksam@nrbcommercialbank.com
HOB: Mr. Mohammad Faruk Hossain, FAVP HOB: Mr. Md. Akhtar Hossain, VP
Hathazari Branch
Toyoba Noor Complex
Holding # 61/1, Word No.03
Pouroshova & Upozila : Hathazari
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District : Chittagong
Cell : 019 555 02 161, 01678 433 161
E Mail : hathazari@nrbcommercialbank.com
HOB: Mr. Mohammad Aminul Islam, AVP
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Sylhet Divis ion

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Sylhet Branch
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HS Tower Darghagate, Waves 1, Sylhet. Munshibazar Branch

PABX: 0821-711476-7 Munshibazar, Rajnagar, Moulovibazar
FAX: 0821-711486, e-mail: munshibazar@nrbcommercialbank.com
Cell : 019 555 02 116, 01678 433 116 Cell: 01955 502 135, 01678 433 135
E Mail : sylhet@nrbcommercialbank.com HOB: Mr. Muhammad Shafique Miah
HOB: Mr. Ibne Ali Md. Najmul Kibria, VP Majumder, FAVP
Sylhet Uposhohor Branch

Syed Plaza, Block-D, Boteswar Branch
Shahjalal Housing Estate Metropolitan University Campus
Uposahar, Sylhet. Boteshwar, 4No Khadim para, Atgaon, Shah
PABX: 0821728953 Paran District: Sylhet.
Cell: 01955 502 136, 01678 433 136 Cell : 019 555 02 159, 01678 433 159
Email: sylhetuposahar@nrbcommercialbank.com E Mail : boteswar@nrbcommercialbank.com
HOB: Mr. Saadi Ul Baree, AVP HOB: Mr. Md. Abdul Kader Talukder, FAVP

Barisal Divis ion
Inderhat Branch
Barisal Branch Hasem Ali Market
Lisa Plaza Sohagdal (Swarupkati)
140/1, Sadar Road, Barisal. Nesarabad, Pirojpur
PABX: 043163122 Cell: 01955 502 138, 01678 433 138
Cell : 01955 502 119, 01955 502 119 Email: gopalchandraroy@
E Mail : barisal@nrbcommercialbank.com nrbcommercialbank.com
HOB: Mr. G. K. A. M. Maksud Bin Harun, FVP HOB: Mr.Gopal Chandra Roy, AVP
Agail jhara Branch

Holding#110, Manashi Fulosree, Union
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No-02 Bakal, Ward#01, P.O: Agailjhara-
8240,Upazila,-Agailjhara, Dist: Barisal.
Cell : 019 555 02 164, 01678 433164
E Mail : Agailjhara@nrbcommercialbank.com
HOB: Mr. Md. Al Mamunur Rashid, AVP
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Rajshahi Divis ion
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Rajshahi Branch Naogaon Branch

F R Plaza, Rani Bazar, Boalia T K Plaza, Batar Morh
Rajshahi City Corporation, Rajshahi. Naogaon Sadar, Naogaon
Tel : 0721 775046, 773373, Tel : 0741 62 006- 8
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Cell : 019 555 02 120, 01678 433120 Cell : 019 555 02 122, 01678 433 122
E Mail : rajshahi@nrbcommercialbank.com E Mail : naogaon@nrbcommercialbank.com
HOB: Mr. Md Nurul Habib, FVP HOB: Mr. Shamol Chandra Barmon, FVP
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Bogra Branch
Goni Plaza, Namazgor More, H #151, Word Ruppur Branch
# 05 , Bogra Sadar, Bogra Papa Roma Resort ,Natun Hat More,
PABX: 5178040 Sahapur, Ishwardi, Pabna.
Cell: 01955 502 146, 01955 502 146 Cell : 019 555 02 165, 01678 433165
Email: awoal@nrbcommercialbank.com E Mail : Rooppur@nrbcommercialbank.com
HOB: Mr. Kazi Rejaul Qais, AVP HOB: Mr. Md. Rashed Ul Alam, FAVP
Rangpur Divis ion
Rangpur Branch
GM Tower, 16, GL Road Rangpur Sadar, Pulhat Branch
Rangpur PABX: 052153301-02 Sarker Bhaban, Pulhat Dinajpur.
Cell : 019 555 02 130 01678 433 130 Cell : 019 555 02 141, 01678 433 141
E-mail: rangpur@nrbcommercialbank.com E-mail: pulhat@nrbcommercialbank.com
HOB: Mr. Syed Sirajul Haque, FVP HOB: Mr. Monibor Rahman, FAVP
NRBC Bank 57
KHULNA DIVISION
Hatgopalpur Branch
Mondol Market , 11 No. Poddakor Union ,
Khulna Branch Upozila: Zhinaidah Sadar
34, KDA Avenue, Khulna Sadar, Khulna. PS : Zhinaidah , District: Zhinaidah
Cell : 019 555 02 131 , 01678 433 131 Cell : 019 555 02 148 , 01678 433 148
Email : khulna@nrbcommcrcialbank.com E-mail: russel@nrbcommercialbank.com
HOB: Mr. Md. Mokhlesur Rahman Bali, AVP HOB: Mr.Russel Mehedi, FAVP
Kushtia Branch Jeshore Branch

Tamij Uddin Market, “Universal Mintu Heights”
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Holding No-176/177/178. Ward No-01, Holding#14900-00, Jessore pourasava,
Kushtia Pourasava, Kustia Jessore.
Cell : 019 555 02 163, 01678 433163 Cell : 019 555 02 166, 01678 433166
E Mail : kushtia @nrbcommercialbank.com E Mail : Jashore @nrbcommercialbank.com
HOB: Mr. Md. Zamal Uddin, PO HOB: Mr Md. Iqbal Hossain, AVP
Mymensingh Division
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d.
Mymensingh Branch
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GM Plaza Market
38, Muktijoddha Sarani
Word#8, PS#Kotowali Purbadhala Barnch
Mymensingh City Corporation Habib Market, Purbadhala Bazer,
Dist: Mymensingh, Upazila: Purbadhala, Dist Netrokona
Cell : 01955 502 152, 01678 433 152 Cell : 019 555 02 168, 01678 433168
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E Mail : mymensingh @nrbcommercialbank.com E Mail : Purbadhala@nrbcommercialbank.com

HOB: Mr. Kazi Mizanur Rahman, AVP HOB: Mr. Nahidur Rahman, FAVP
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KEY PERFORMANCE INDICATOR

Performance Since 2014
Key Performance Indicator (KPI)
Particulars 2018 2017 2016 2015 2014
Balance Sheet Matrix
Authorized Capital 10000 10000 10000 10000 10000
Paid up capital 5,710.95 [If 5,145.00 4,900.00 4,579.44 4,446.06
Bonus Share
@11% is
approved by
Shareholders
in 6th AGM]
Reserved Fund & Surplus 1,061.29 1,468.46 1108.62 666.96 141.79
Total Stockholder Equity 7,094.31 6,410.80 5,728.74 5,152.92 4,587.85
Deposit 54,085.64 45,236.44 44,143.28 28,880.68 17,270.89
om
Loans & Advances 48,151.88 43,000.28 37,408.28 23,227.39 14,412.35
Investments 8,276.75 6,864.13 7,527.58 6,485.87 5,669.75
Fixed Assets 481.96 487.23 560.10 464.9 342.89
Total Assets 67,142.86
c 57,529.35 53,619.10 36,259.01 24,848.11
Total Off-balance sheet Items 19,455.25 16,591.43 12,934.95 8,651.75 4492.66
Interest Earning Assets 60,133.88 51,089.43 48,816.25 31,991.23 22,288.91
d.
Non-Interest Earning Assets 7,008.99 6,439.93 4,802.85 4,267.78 2,559.05
Net Interest Margin (NIM) 0.97% 0.79% 0.64% 0.21% 0.36%
ab
Income Statement Matrix

Interest Income 5,801.72 4,717.82 3,905.39 2,920.42 1,656.90
Interest Expense 3,643.67 3,146.94 2,868.14 2,697.41 1,433.07
Net Interest Income 2,158.05 1,570.87 1,037.25 223.01 223.83
nk
Investment income 887.25 1,259.20 1,488.94 1,468.89 609.35

Non-Interest Income 702.62 695.77 485.67 310.31 157.81
Operating Expense 1,843.76 1,683.93 1,474.34 1,079.80 659.80
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Total Income 7,391.59 6,672.79 5,880.00 4,699.62 2,424.05

Total Expense 5,487.44 4,830.87 4,342.48 3,777.21 2,092.87
Operating Profit 1,904.16 1,841.92 1,537.52 922.42 331.18
Profit before tax 1,569.89 1,397.82 1,307.90 792.73 183.63
Profit after tax 937.65 928.94 869.03 560.08 84.77
Capital Measure
Risk Weighted Assets 52,565.30 49,922.72 45,942.09 28,768.03 16,415.32
Core Capital (Tier I) 6,825.53 6,235.42 5,690.30 5,106.67 4,581.57
Supplementary Capital (Tier II) 578.83 545.13 510.30 338.09 214
Total Capital 7,404.37 6,780.55 6,200.60 5,444.76 4,760.57
Capital Surplus/(Deficit) 1,162.24 1,137.39 1,319.26 2567.96 3,119.05
Tier – I Capital Ratio 12.98% 12.49% 12.39% 17.75% 27.70%
Tier – II Capital Ratio 1.10% 1.09% 1.11% 1.18% 1.30%
Total Capital to Risk Weighted Assets 14.09% 13.58% 13.50% 18.93% 29.00%
Ratio (CRAR)

Particulars 2018 2017 2016 2015 2014
Credit Quality
Classified Loan 1,414.40 1,032.58 193.02 62.86 Nil
Percentage of Classified Loan 2.94% 2.46% 0.52% 0.27% 0.00%
Provision for Unclassified Loan 409.72 372.22 370.49 237.59 158.01
Provision for classified Loan 723.74 461.31 58.65 4.76 Nil
Provision for Off-balance Items 160.46 165.91 129.35 86.52 38.5
Foreign Exchange Business
Import 26,229.88 24,786.54 18,133.73 12,377.90 7,223.79
Export 25,091.91 22,459.69 16,885.62 11,772.60 5,964.84
Remittance 996.19 610.03 409.74 399.30 275.69
Operating Profit Ratio
Credit Deposit Ratio 85.91% 92.18% 82.99% 79.11% 79.79%
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Cost of Deposits 7.27% 6.47% 6.91% 8.40% 9.81%
Operating Profit Marrgin 25.76% 27.60% 26.15% 19.63% 13.66%
Net Profit Margin 12.69% 13.92% 14.78% 11.92% 3.24%
Yield on Loan & Advances 12.88% 11.74% 13.04% 14.10% 14.42%
Administrative Cost
c 3.47% 2.53% 2.70% 3.17% 3.57%
d.
Cost of Fund 10.74% 9.00% 9.61% 11.57% 13.38%
Spread (Cost of Deposit) 5.61% 5.27% 6.13% 5.70% 4.61%
Spread(Cost of fund) 2.14% 2.74% 3.43% 2.53% 1.04%
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Return on Equity 13.89% 15.30% 15.97% 11.55% 1.75%

Return on Assets 1.50% 1.67% 1.93% 1.83% 0.46%
Equity Multiplier 9.23* (Times) 8.97*(Times) 8.26*(Times) 6.30*(Times) 3.83*(Times)
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Debt Equity Ratio 11.81% 12.54% 11.96% 18.37% 22.61%

Performance Ratio
Profit Per Employee 1.96 2.99 2.76 1.95 0.97
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Burden Ratio 53.49% 34.48% 37.99% 39.97% 62.22%

Interest Coverage Ratio 52.26% 58.53% 53.61% 34.20% 23.11%
Expense Coverage Ratio/Cost to 49.19% 47.76% 48.95% 53.93% 66.58%
Income Ratio
Dividend
Cash 0% 5% 5% 6% 1%
Stock 11% 5% 7% 3% Nil
Dividend in from of Stock & Cash 565.95 490.00 549.54 400.15 44.46
Dividend Payout Ratio 60.36% 52.75% 63.24% 71.45% 52.45%
Share Information Matrix
Share Outstanding 571.09 [If 514.50 490.00 457.95 444.61
Bonus Share
@11% is
approved by
Shareholders
in 6th AGM]
No. of Share Holder 65 59 54 53 53
NRBC Bank 61
Particulars 2018 2017 2016 2015 2014
Earnings Per Share (Taka) 1.82 1.89 1.90 1.26 0.18
Net Asset Value Per Share (Taka) 13.71 13.00 12.42 11.50 10.30
Net Operating Cash flow 10.13 (5.01) 6.56 7.68 6.42
per share(Taka)
Free Cash Flow per share (Taka) 10.41 (5.17) 6.08 7.85 5.86
Other Information
No. of Branches 68 61 51 40 26
No. of ATM 51 46 42 29 15
No. of Relationship Management 160 152 148 135 116
Account
No. of employees 970 617 557 479 340
No. of Nastro Account 12 12 13 11 10
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d.
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Reserved Fund & Surplus Stockholder Equity
2000.00 8000.00
7094.31
1468.46 6410.80
1500.00 6000.00 5728.74
1108.62 5152.92
4587.85
1061.29
1000.00 4000.00
666.96
500.00 2000.00
141.79
2018 2017 2016 2015 2014 2018 2017 2016 2015 2014
Deposit and Other Accounts Loans and Advances
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60000.00 54085.64 60000.00
45236.44 48151.88
44143.28 43000.28
40000.00 40000.00 37408.28
28880.68
17270.89 23227.39
14412.35
20000.00 20000.00
2018 2017 2016

c
2015 2014 2018 2017 2016 2015 2014
d.
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Total Assets Profit before tax

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80000.00 2000.00
67142.86
1569.89
60000.00 57529.35 53619.10 1500.00
1397.82
1307.90
40000.00 36259.01 1000.00
792.73
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24848.11
20000.00 500.00 183.63
2018 2017 2016 2015 2014 2018 2017 2016 2015 2014
Opera�ng Profit Marrgin

Profit a�er tax 30.00%
27.60% 26.15%
1000.00 25.76%
937.65 928.94 19.63%
869.03 20.00%
560.08
500.00 13.66%
10.00%
84.77
0.00%
2018 2017 2016 2015 2014
2018 2017 2016 2015 2014
NRBC Bank 63
Net Profit Margin Capital
15.00% 8000%
12.69% 13.92% 14.78% 7404.37 6780.55
11.92% 6200.60
10.00% 6000% 5444.76
5.00% 3.24% 4000% 4760.57
0.00% 2000%
2018 2017 2016 2015 2014 2018 2017 2016 2015 2014
Export
30000.00 Import
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25091.91
25000.00 30000.00
22459.69 26229.88 24786.54
20000.00 20000.00
16885.62 18133.73 12377.90
15000.00 7223.79
11772.60
10000.00
10000.00
c 5964.84 2018 2017 2016 2015 2014
d.
5000.00
2018 2017 2016 2015 2014

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Opera�ng Profit
Remi�ance
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2000.00
1904.16 996.192
1841.92 1537.52 1000
1500.00 610.031
500 409.740
1000.00 399.3
922.42
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275.69
0
500.00 331.18
2018 2017 2016 2015 2014
2018 2017 2016 2015 2014

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d.
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DIRECTORS’ REPORT
DIRECTORS’ REPORT
Bismillahaher Rahmanir Rahim.
Dear Fellow Shareholders
The Board of Directors has the pleasure of presenting Directors’ Report along with the Audited Financial Statements
and Auditors Report thereon for the year ended December 31, 2018 before you for consideration and adoption.
We believe that this Report will give real insights of the Bank’s operational performance in compliance with Section
184 of the Companies Act 1994 and Notification No. BSEC/CMRRCD/2006-158/207/Admin/80, dated 03 June, 2018
of the Securities and Exchange Commission:
1a) The State of the Company’s Affairs [Section # 184(1a) of the Act]
“Vision 2021” will be aimed at making Bangladesh a middle income country, free from hunger and poverty by
ensuring economic improvement by creating employment’
Hon’ble Prime Minister
In 2018, UN declared that Bangladesh, for the first time in history, had fulfilled the eligible criteria set by the United
Nations to be recognized as a developing country,
crossing over from the list of least developed countries
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(LDCs).
According to the Centre for Economic and Business
Research (CEBR) a London based think tank “Bangladesh
has been ranked 41st among the world’s largest
economies in terms of GDP and has become the second
biggest economy in South Asia.
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d.
Bangladesh’s economy grew by 7.86 percent in
FY 2018 up from 7.28 percent in FY 2017 driven by
strong domestic demand with support from robust
credit growth, exports and remittances. The per capita
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income rose to USD 1751 in FY 2018 from USD 1610

in FY 2017.
Bangladesh Bank projected GDP growth in the range
of 7.5-8.2 percent for FY 2019 assuming continues
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political stability and no large internal and external

shocks. Partial View of the 5th Annual General Meeting (AGM) of NRB
Commercial Bank Limited was held on 21 July 2018.
However, long standing challenges including the
Rohingya crisis and growing trade deficit hindered
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Bangladesh’s economic recovery in 2018. The effect of Liquidity crunch in the monetary market rising default loans
and deposit credit growth imbalance put pressure on
overall economy.
Referring to the previous, the Banking sector showed
that total liquid assets of the scheduled Banks
decreased by 1.71 percent or Tk. 4,431 core and stood
at Tk. 2, 55,169.52 crores as of the end of December
2018 in comparison to the preceding year. Besides, the
liquidity decreased by Tk. 10,303.29 core in the same
period.
Default loans was the most talked-about issue in the
country’s banking sector in 2018. It is slated to reach
new heights as default loans are nearly hitting Tk.
100,000 crore for the first time in the country’s 48-year
history. It may be noted that “In the last decade, the
country did not encounter any disaster that could have
prevented businessmen from repaying their loans. The
Bank participated in 4th Development Fair-2018 organized by
economic growth rate has increased and there has
Bangladesh Embassy, Moscow, Russia.
been macroeconomic stability in the country,” But the
number of willful defaulters has increased as well.

In Moody’s outlook for Bangladesh Banking system, the Asset quality is deteriorating in the highly fragmented banking
system. Despite being a robust economy, Bangladesh is witnessing ever-growing trend in bad loans. The chronic
deterioration in asset quality is ultimately hitting the banks’ profitability due to covering up for high credit cost.
According to the Bangladesh Bank (BB) statistics, the weighted average spread between lending and deposit rates
offered by the commercial banks came down to 4.12 per cent in December 2018 from 4.82 per cent in 2017. Besides,
the sluggish trend in the country’s capital market alongside the private-sector credit growth had a negative impact on
profits of the banks in 2018.
The capital market witnessed a gloomy year, as the core index of the Dhaka Stock Exchange (DSE) suffered a 14 percent
slump as investors’ confidence sapped.
NRBC Bank is not an exception of these mentioned above, but overall performance was satisfactory in 2018 compared to 2017:
Cash Management
Cash management refers to the prudent and efficient management of holding cash in such way so that a bank can
earn maximum benefit keeping the risk at a minimum level. A bank’s prudential regulation is to ensure its safety and
soundness to protect the interest of the community as a whole. NRBC Bank has also tried in the best possible way to
manage its cash in the most prudent manner, meeting all cash needs and maintaining the risk at a minimum level.
However, holding cash liquidity is being increased a bit compared to 2017 which indicates that the cash was well
managed at vault and kept with marinate with Banks & FIs.
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in million otherwise specified
Year 2018 2017 2016 2015 2014
Cash in Hand & at Bank c 6,656.60 5,501.74 7,099.34 5,313.93 3,715.25
CRR 5.63% 6.61% 6.62% 6.55% 6.51%
Cash to Deposit Ratio 12.31% 8.71% 7.01% 7.74% 9.00%
d.
Operating Cash Flow per share 10.13 -5.01 5.56 8.32 6.42
According to MPD Circular No. 01 dated 03 April 2018 of Bangladesh Bank, Cash Reserve Requirement decreased to
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5.50 % and the Bank has accordingly complied the same since the date of implementation.
The operating cash flow per share is a reliable measure of a bank’s/company’s financial strength. Although earnings
per share directly measures the amount an investor makes on his/her shares and is, therefore, the more popular
investment measure used as a more reliable measure in terms of the company’s financial strength in the operating
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cash flow per share. In 2018, Operating Cash Flow per share is positive which indicates that Bank is able to tighten the
receivable to it converted into cash.
Treasury Management
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NRBC Bank has an innovative and dynamic treasury team adept in diversified investment opportunities and consistent
contribution in Bank’s profitability. In addition to it’s responsibility for compliance with reserve requirements and
management of liquidity and interest rate risk on the Bank’s balance sheet, it offers a wide range of treasury products
and services to corporate and individual customers. The Bank enters into foreign exchange and derivative deals with
counterparties after setting up its appropriate counterparty credit limits based on its evaluation of the ability of the
counterparty to meet its obligations in the event of crystallization of the exposure.
NRBC Bank Ltd has been acting as a Primary Dealer since its inception in the treasury market. As a primary dealer, Bank
is required to make bids or offers when Bangladesh Bank conducts open market operations and to participate actively in
government treasury securities auctions. The Table below shows the scenario of stable growth of treasury investment
over the year.
Year 2018 2017 2016 2015 2014
Total Investment 8,276.75 6495.12 7,174.16 6,200.87 5,669.75
Investment In Govt. Securities 6151.261 4903.78 5,253.16 4,138.47 4,196.29
Capital Market (Ave.) 669.77 424.03 47.45 70.40 27.46
Ratio of Govt. Investment to Total Investment 74.32% 75.50% 73.23% 66.74% 74.01%
Net Treasury Income 877.88 1,236.00 1,295.69 831.03 397.12
NRBC Bank 67
Since 2017, Bond as well as capital market has been depicted as low yield product in the basket of investment which
also continued in 2018 despite of increase in invest in Govt. treasury to keep pace with statutory liquidity ratios (SLR).
Net treasury income declined by 28.99% over the year 2017 though investment in Govt. Securities and Capital market
increased by 25.51% and 57.14% respectively.
Loans and Advances
Early 2018 banking industry experienced liquidity crises. Liquidity crunch in the banking sector is deepening due to slow
growth of deposits and a sluggish recovery of loans and advances. Banks enjoyed more than 10 percent deposit growth
in 2017, but the situation took a turn for worse in 2018, with growth hovering around the 8-9 percent mark.
Private sector credit growth fell to a 39-month low in December as businesses went on a cautious mode thanks to the
mounting uncertainty centering on the 11th general election.
Credit growth of NRBC was in slowdown phase at early 2018 due to AD ratio was slightly higher than the benchmark
as set by regulator. But Bank extending credit facilities gradually increased over the year which was on 12.00% than
2017 by reducing AD Ratio from 93.07% to 85.91% which exhibits its strength in mobilizing fund from the perfectly
competitive market.
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Year 2018 2017 2016 2015 2014
LDOs 48,117.78 42,960.51 37,407.92 23,227.39 14,412.25
Credit Growth 12.00% 14.84% 61.05% 61.16% 287.72%
AD Ratio c 85.91% 93.07% 82.99% 79.11% 76.83%
% of Classified Loan 2.94% 2.46% 0.52% 0.27% 0.00%
% of Large loan 45.68% 43.20% 33.14% 25.81% 32.35%
d.
No. of loan Account 13,357 9,820 7,860 5,039 2,491
Bangladesh’s Non Performing Loans Ratio stood at
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10.3 % in Dec 2018, compared with the ratio of 11.5

Credit vs NPL
% in the September quarter. NRBC Bank has also
50,000.00
48,117.78 experienced non-performing loan which reached at
7.81% in the Third quarter of 2018. A good number of
42,960.51
45,000.00 37,407.92
40,000.00 default customer showed unwillingness to regularize
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35,000.00
30,000.00 23,227.39
until December. At the same time, Bank management
25,000.00 put pressure on the default customer to recover
20,000.00
15,000.00
14,412.25
overdue loan. Though nonperforming loans reached
10,000.00 at 2.94% in 2018 from 2.46% in 2017 but still it is
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considerably lower than acceptable rate of non-

1,414.40 1,082.58 193.02 62.86 -
5000.00
2018 2017 2016 2015 2014 performing loan.

Like 2017, Bank also achieved the target of SME and
Agriculture loan set by Bangladesh Bank. The Bank
approved loan application on the basis of its merit, credit worthiness, security market reputation etc. This sagacious
process helps the bank to build a healthy Assets portfolio and attain quality growth.
Sector wise distribution of credit portfolio of NRBC Bank:
Sector Taka in Million % in the Portfolio

Agri cultural Industry 963.74 2.00%
Textile 2,471.43 5.14%
RMG 5,370.35 11.16%
NBFI 598.76 1.24%
Food 183.75 0.38%
Bevarage 154.96 0.32%
Pharmaceutical 242.30 0.50%
Chemical 112.51 0.23%

Sector Taka in Million % in the Portfolio
Electrical 91.11 0.19%
Construction 3,079.56 6.40%
House Building Residential 871.22 1.81%
Leather 66.28 0.14%
Service Industry 1,189.46 2.47%
Transport 240.76 0.50%
Basic Metal 7.15 0.01%
Capital Market 12.16 0.03%
Car loan 5.53 0.01%
Furniture 4.29 0.01%
Insurance 3.76 0.01%
Consumer Finance 1,789.03 3.72%
Printing 657.64 1.37%
Ship Breaking 590.18 1.23%
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SME 9,291.25 19.31%
Staff Loan 485.73 1.01%
Steel 2,392.65 4.97%
Trade Industry 9,265.23 19.26%
Card
c 325.70 0.68%
d.
Other Manufacturing Industry 7,090.03 14.73%
Others 561.22 1.17%
Total 48,117.78 100.00%
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Deposits Mobilization
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One more year passed with sluggish growth in deposits in the banking system, though different measures were taken
by the government and the central bank to improve the situation.
Most of the time in the year of 2018, the banks had faced liquidity pressure mainly due to higher credit growth than
that of deposits. The deposit growth came down to 10.45 per cent in October from 10.60 per cent in December 2017
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while the credit growth stood at 15.19 per cent compared with 18.08 percent. Besides, the overall credit growth in the
banking system recorded a higher growth than that of deposit in the last three years.
Management of NRBC Bank organized different campaign to increase in number of deposit account and volume of
deposit. Number of CASA deposit account raised and eventually total number of deposit account moved up. In 2018,
56.75% increase in number of account and 19.56% increase in volume of deposit amount. NRBC Bank limited focuses
on mobilizing fund from surplus economic unit and prudently deploying fund to the prospective customer with strategy
of retail based loan to keep down large loan exposure in the loan basket.
In million otherwise specified
Year 2018 2017 2016 2015 2014
Deposits 54,085.64 45,236.44 44,143.28 28,880.68 17,270.88
Cost of Deposit 7.27% 6.47% 6.91% 8.40% 9.81%
No. of Deposit A/c 257,053 163,990 122,179 76,890 42,132
% of low cost deposit mixing (CASA) 28.96% 29.08% 29.29% 16.28% 15.93%
NRBC Bank has been consistently maintaining strong Deposit base since its inception and concentrating on mobilizing
no cost or low cost deposit. Low-cost deposits i.e. CASA (CD, SB and SND) are the key factors for a bank to maintain
its sustainability and to increase its shock absorbing capacity. At present 28.96% of total deposit is no cost or low cost
deposit. NRBC Bank is focusing to make this ratio 44% of total deposit.
NRBC Bank 69
In deposit portfolio, following are the Product wise Deposit and Deposit mix on merit of cost:
st
Co
High
No Cost
PRODUCT WISE COST WISE
DIPOSIT MIX
DIPOSIT MIX
Low
Cost
Fixed Depodits Current Accounts and other Accounts

Deposit Under Schemes Short No�ce Deposits
Savings Deposits
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Shareholder Equity Value
According to data from Bangladesh Bank, Average Capital Adequacy of Banking Industry in Bangladesh has maintained
11.97% Capital on its Risk-Weighted Assets against which total equity of the Bank as on 31/12/2018 stood at 69,618.58
million. As per BASEL Accord Minimum Capital requirement must be at least 11.875% of Risk weighted Assets (RWA)
c
for the year 2018 among of which Minimum CET1 plus Capital Conservation Buffer was 12.93% against required to be
6.375%. Bank has maintained 14.03% which is much higher than industry average.
d.
Equity and capital are growing consistently over the years. In the 5th AGM, the shareholder approved 5% stock dividend
instead of 8% stock dividend recommend by Board in its 64th meeting resulting Tk. 244.90 million included in the paid
up capital. Consistent Increasing Trend of equity, capital and Net Asset Value (NAV) of the bank reflect its financial
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Strength of the bank.

Particular 2018 2017 2016 2015 2014
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Shareholder Equity 7,094.31 6,410.80 5,728.73 5,152.92 4,587.85

Regulatory Capital 7,357.66 6,780.60 6,200.61 5,444.76 4,766.86
NAV (Tk.) per share 13.71 13.00 12.42 11.5 10.3
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Capital Surplus/(Deficit) 1,130.82 1,164.20 1,319.26 2,567.96 3,125.33

Risk Weighted Assets 52,565.30 49,922.70 45,942.09 28,768.03 16,415.32
Capital Adequacy Ratio 14.03% 13.58% 13.50% 18.93% 29.04%
Capital - Core (Tier I) 6,778.83 6,235.40 5,690.27 5,106.67 4,552.86
Capital - Supplementary (Tier II) 592.83 545.1 510.34 338.09 214
Net Assets Value (NAV) per share stood at Tk.13.71, which is higher than previous year by 5.46%. Both healthy equity
and capital is symbol of safe investment by the investors resulting NAV is ahead of par value of share. The table shows
a hike in Equity, Capital and Risk Weighted Assets by 10.66%, 8.51% and 5.29% respectively. The table depicts NRB
Commercial Bank Limited has always been consistent in maintaining Capital Adequacy Ratio above the regulatory
requirements. The Bank has been successfully managing the incremental growth of the Risk Weighted Assets by
ensuring diversification of the portfolio in SME, Retail and Corporate segments.
Capital adequacy status under Basel III
The Authorized Capital of the Bank was BDT 1000.00 Crore and paid-up capital was BDT 514.50 Crore as of December
31, 2018. The Capital and Reserves (Tier-1 Capital and Tier-II Capital) stood at BDT 740.43 Crore as compared to BDT
678.06 Crore in last year having growth of 9.20%.
Bank’s Capital to Risk Weighted Asset Ratio (CRAR) remains consistent during 2018 (14% plus) against the requirement

of 11.875% (Minimum Capital Requirement plus Capital Conservation Buffer) throughout all four quarters of 2018.
However, to keep pace with the growth of Risk Weighted Assets and increased CRAR requirement in 2019 under Basel
III, bank is determined to enhance the capital base by retaining more profit in the form of capital.
Capital and Reserve of the Bank as of December 31, 2018 were as follows:
Figure in million
Particulars Solo Consolidated
Common Equity Tier-1 :
Paid up Capital 5,145.00 5,145.00
Statutory Reserve 1,050.30 1,050.30
Retained Earning 841.30 847.30
Minority interest in Subsidiaries - 40.70
Regulatory Adjustments : - -
Deferred Tax Assets (DTA) 257.80 257.80
Total Common Equity Tier-1 6,778.80 6,825.50
Additional Tier-1 : - -
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Total Tier-1 Capital 6,778.80 6,825.50
Tier-2 Capital :
General Provisions 575.30 575.30
Revaluation reserve 17.40 17.40
Regulatory Adjustments :
Revaluation reserve
c 14.00 14.00
d.
Total Tier-2 Capital 578.80 578.80
Total Regulatory Capital 7,357.60 7,404.30
Tier-1 Capital to Risk Weighted Asset Ratio 12.93% 12.98%
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Capital to Risk Weighted Asset Ratio (CRAR) 14.03% 14.09%
Operational Performance
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On June 21, 2018 the Bangladesh Association of Banks (BAB) decided to bring down the interest rate on lending to
9%. But banking sector did not commit with promise just after the declaration meaning the private banks are lending
at between 14% and 15%, while the average interest rate for deposits is between 9% and 10% after the third quarter
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which was ever highest in the banking sector for the year 2018.
 NRBC is not exception to this, yield on loans and advances raised to 12.88% which was 1.10% basis point higher
than 2017. Therefore, net interest income increased by 37.26% despite of the decreasing trend of net investment
in Govt. Treasury and Capital Market.
Particulars 2018 2017 Change
Total operating income 7,391.59 6,670.21 10.81%
Total operating expense 5,487.44 4,828.29 13.65%
Operating profit (Profit before provision and tax) 1,904.16 1,841.92 3.38%
Profit before tax for the year (PBT) 1,569.89 1,397.82 12.31%
Tax provision 632.24 468.88 34.84%
Profit after tax (PAT) 937.65 928.94 0.94%
Earnings per share (EPS) 1.82 1.89 -3.61%
Cost income ratio 49.19% 47.72% 3.09%
Return on investment (ROI) 13.89% 15.30% -9.24%
Return on assets (ROA) 1.50% 1.67% -9.93%
NRBC Bank 71
 Network expansion such as Branch, BRTA collection booth and Agent points all these effects to increase in
operating expense by 13.65%. Furthermore, The Board of Directors also focused on retail business which
induced new infrastructure amplified operating expenses.
 Though loan classification
rate increased to 2.94%
which was higher than
0.48% basis point of 2017,
but impact of new provision
in the Profit and Loss was
Tk.262.42 million which
less than Tk.402.65 million
at 2017.
 Corporate tax increased
by 34.84% mainly low Tax-
Bracket income decrease
sharply in the investment
basket in 2018. Impact
of lower amount of loan
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provision and negative
of lower Tax-Bracket, National Board of Revenue (NBR) Chairman & Senior Secretary, IRD of Finance
distributable profit after tax Ministry, Mr. Md. Mosharraf Hossain Bhuiyan, NDC inaugurated the 67th branch at
(PAT) was almost same as in Pallabi, Mirpur-12.
the year of 2017. c
 Basic EPS was diluted due to increase of no. of shares by 245.00 million (stock dividend) which was approved in
the 5th AGM.
d.
Foreign Trade Business
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Bangladesh’s export earnings rose by 5.8% to $36.66 billion in the last fiscal year, while the country earned $34.65 billion
from exports in FY17 despite suspension of Generalized System of Preferences (GSP) in USA market for Readymade
Garments.
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RMG, Knitwear, Woven, jute and jute products, leather and leather products, pharmaceuticals, agricultural products,
engineering products, and frozen and live fish are the main Export items of Bangladesh.
Bangladesh imported US$53 billion worth of goods from around the globe in 2018, up by 10.3% since 2015 and up
by 6.2% from 2017 to 2018. Bangladeshi imports represent a modest 0.3% of total global imports which totalled an
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estimated $17.788 trillion one year earlier.
NRBC Bank attained 11.72% in export business over the last five year and, at the same time, attained import growth of
5.82%. Positive growth of foreign trade business is the result proper intervention by the management to build up credit
line, Relationship Management Account (RMA) with corresponded and NOSTRO account with leading bank in abroad.
A snapshot of foreign trade performance of the last five years of NRBC Bank Limited is given below:
Particulars 2018 2017 2016 2015 2014
Import 26,229.88 24,786.54 18,133.73 12,377.90 7,223.80
Export 25,091.91 22,459.69 16,885.62 11,772.60 5,964.80
Remittance 996.19 447.01 409.74 399.30 275.70
RMA 160 152 148 135 116
Nostro Account 13 12 13 11 10
Foreign Remittance Sub Agencies 5 5 5 3 1

However, Foreign Trade business shows an upward trend and growth rate shows a downward trend
Remi�ance
Import & Export
1,200.00
60,000.00
25,091.91
50,000.00 1,000.00
22,459.69
40,000.00 800.00
16,885.62
30,000.00 26,229.88 600.00
11,772.60
18,133.73 24,786.54
20,000.00 400.00
5,964.80 12,377.90
10,000.00 200.00
7,223.80
2014 2015 2016 2017 2018

2014 2015 2016 2017 2018
According to latest data released by the Bangladesh Bank, the expatriates remitted $14.98 billion in the last fiscal year.
After record remittance in 2014-15, the figures dropped in the three following financial years. Bank experienced a huge
hike in remittance flow than of 2017. Remittance inflow had gone up by 122.86% in the year 2018 than the previous
year 2017.
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The government has proposed in the budget that an incentive of two percent on money remitted by expatriate
Bangladeshi to encourage bringing in foreign remittance through legal channels.
If approved in the parliament, Bank Management shall also try to align with the government spirit and also working to
increase foreign remittance in line with the goal of establishment of this bank.
c
(1b) Maintenance of Required Reserve in the Audited Financial Statement approved by Board [Section 184 (1b) of
d.
the Act]
Like 2017, NRBC is consistently maintaining or complying with the 20% (Profit before Tax) as statutory reserve in
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pursuant to Section 24 of the Bank Companies Act 1991, as amended 2018 and expecting to maintain it as long as
cumulative balance of statutory reserve reaches at the equal level of paid up capital.
During the year 2018, statutory reserve exceeded Tk. 1,000 million landmarks after transferring 20% of pretax profit to
statutory reserve. Following table shows that 5 year statutory reserve position which is remarkable:
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Taka in Million
Statutory Reserve Movement 2018 2017 2016 2015 2014
Beginning Balance 737.87 462.77 203.22 44.38 7.65
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Transfer during the period from pre-tax profit 312.48 275.09 259.55 158.84 36.73
Closing Balance of Statutory Reserve 1,050.34 737.86 462.77 203.22 44.38
% of Change over previous year Contribution 114% 106% 163% 332% 100%
% of Change from base period 2014 2267% 1563% 943% 358% 100%
From the above table shows that Bank is able to maintain more than 100% statutory reserve over previous years
after adequate provisions for loan & advances which settled in the Tripartite meeting held on March 28, 2019. Net
Assets Value (NAV) stands Tk.13.69 (13.70 Consolidated basis) which is higher than 1.06% than year of 2017. No other
reserve was maintained/proposed by Board of Directors during the year under consideration except Tk.10.95 million
as revaluation reserve which is required to maintain DOS Circular no. 15 dated 31/10/2005, DOS Circular Letter no. 03
dated 07/02/2007 and DOS Circular Letter no. 05 dated 26/05/2008.
Recently, Hon’ble Finance Minister proposed new proviso 16G (Charge of tax on retained earnings) “total of retained
earnings, any reserve or any other equity, called by whatever name, except paid up capital exceeds fifty per cent of the
paid up capital of a company registered under The Company Act -1994 and listed to any Stock Exchange in Bangladesh,
Tax shall be payable at the rate of 15% on the amount of such excess of the company in the aforesaid income year.”
NRBC Bank 73
If the above new proviso 16G (Charge of tax on retained earnings) effect in the parliament, NRBC Bank will not pay any
tax @15% on additional total of retained earnings, any reserve or any other equity:
Component of Stockholder equity Except Paid up capital Taka In Million

Statutory reserve 1,050.34
Revaluation reserve 10.95
Retained earnings 841.32
Total 1,902.61
Paid up capital accord by BSEC 5,145.00
% of Paid up capital accord by BSEC 36.98%
Retained earnings will be reduced if Stock dividend@11% will be approved in the 6th AGM as recommend by Board of
Directors in its 79th meeting held on 30th March 2018.
(1c) Recommendation of dividend by the Board of Directors [Section 184 (1c) of the Act]
The value of a firm is affected by its dividend policy. The optimal dividend policy is the one that maximizes the company’s
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value means that strikes a balance between current dividends and future growth that maximizes the firm’s stock price.
That’s why Corporates Financing decision alternatively depend on prudent dividend policy. Dividend payout policy
will determine the amount of earnings that can be retained in the firms as a source of Financing.
The Board of Directors is continuously trying to uphold and protect the interest of all sponsors/shareholders and ensure
stable growth of the Bank by adopting prudent dividend declaration. Dividend history of the last four years of the Bank:
c Taka In Million
d.
2017 2016 2015 2014
Form of Dividend
Rate Amount Rate Amount Rate Amount Rate Amount
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Cash 5% 245.00 5% 228.97 6% 266.76 1% 44.46

Stock 5% 245.00 7% 320.56 3% 133.38 0% -
Total 10% 290.00 12% 778.51 9% 400.14 1% 44.46
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In continuation of the previous four financial years, the Board of Directors in its 79th meeting held on 30th March
2018 recommended for 11% stock dividend for the year 2018. Therefore, distribution of dividend shall be as under (if
approved in the next AGM)
Taka in Million
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Rate of Dividend Recommended by the Board Form Amount Remarks

11% Stock 565.95 Paid up capital will be Tk. 5,710.95 million
Unlike the previous year 2017 only stock dividend will be provided to stockholders instead of a blend of cash dividend
and stock dividend in order to strengthen the capital base as per BASEL III requirement which has undergone
implementation by Bangladesh Bank since 2014. Strong and large capital base of the Bank will augment its capacity to
go for large loan/investment exposure.
Recently Hon’ble Finance Minister proposed “A bird in the hand” Theory by adding new proviso 16F “Charge of tax on
stock dividend” placed before Parliament on June 13, 2019 i.e. “Theory of the Dividend Payment Preference”
Furthermore, Tax@15% will be treated as corporate tax, but not tax paid by shareholder who is entitled such dividend
if company issues stock dividend, then paid up capital will actually increase Tk. 509.35 million.
So shareholders may consider proposition of stock dividend in the 6th AGM to be held on July 20, 2019. At the same
time, the budgetary proposals will have an adverse impact on the entire banking sector more or less which will reduce
the capital base from their retained earnings and reserves resulting will hurt the BASEL III requirement.
(1d) Material changes and commitments have occurred between the end of the financial year and the date of the
Directors’ Report [Section 184 (1d) of the Act]
NRBC Bank in its 64th Board Meeting held on 28th March 2018 to form another NRBC Bank Asset Management Company

(AMC), The Board decided restructure it’s the proposed Asset Management Company (AMC) in the 69th Meeting of
Board of Directors of the Bank held on 19th August 2018:
Authorized Capital (In

Paid up Capital (In Million) Entity Types Bank Holdings
Million)
200.00 100.00 Private Limited 70%
Bank already applied to Bangladesh Bank for getting permission on November 07, 2018 and, after getting the same,
Other regulatory formalities will be complied.
No other material changes has been occurred between the end of the financial year and the date of the Directors’ Report
placing before AGM except the Board of Directors in its 80th Board Meeting held 30th March 2019 with recommendation of
@ 11% Stock dividend for the year 2018 which is expected to be approved in the 6th Annual General Meeting of the Bank.
(2) Material Change of the state of company’s affairs [Section 184 (2) of the Act]
In the Directors’ Report it was mentioned that no material changes for appreciation of the state of the company’s affairs
by its members that have occurred during the financial year 2018:
(a) Change in Company’s Business Nature [Section 184 (2a) of the Act]:
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Like previous director report, no material change has been occurred in the company nature of business for the year
2018. NRBC Bank emphasis on expansion of network such as 08 new branches and another milestone of NRBC Bank is its
full-fledged banking operation through small Banking Booths for more coverage in the geographical area of Bangladesh.
A2i, Agricultural Business Center and Symantec are partner of agent Banking system. Currently 558 agent points are
working all over the country. 18 BRTA booths established in different district office for collection of Govt. revenue.
c
Another milestone or charge in operation is that Bank has got 12 banking booths permission from Bangladesh Bank.
d.
Banking Booths is full-fledged banking operation like small size branch under a mother branch. It will facilitate with all
types of banking services including payment of foreign remittance. “Donia Banking Booth“ - the first Banking Booth of
NRBC Bank started its operation at a densely populated area in Donia, Dhaka.
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The Board of Directors has an aspiration to establish Islamic banking window in the 66th meeting held May 28, 2018,
necessary process is underway the same. If Islamic banking wing comes into effect, it will bring another dimensional
change in the nature of business of the company affairs.
NRBC is also trying to channelize the foreign remittance service by establishing relationship with reputed remittance
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agency in abroad so that beneficiary will get the money from all branch networks, Banking booth and agent point.
(b) Change in the company’s subsidiaries or in the nature of the business carried on [Section 184 (2b) of the Act]
Subsidiary company NRBC Bank Securities Limited expanded its network by inaugurating its Gulshan Branch at
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52,Gulshan Avenue, Silver Tower,Gulshan -1, Dhaka and also decided to shift its corporate Head Office from 114,
Motiheel C/A, Dhaka-1000 to 2, Dilkusha C/A, Level -7, Dhaka-1000. NRBC Bank Securities Limited declared@5% Cash
dividend for the year 2018 which was approved in the 2nd AGM of the company as well as size of business increased by
14.18% than 2017. Bank has no intention to change its nature of business in the near future.
Bank applied to Bangladesh Bank for getting permission to form another subsidiary company named as NRBC Asset
Management Limited of its 69th Board Meeting held 19th August 2018 to cater to the portfolio business by pulling funds
into securities that match declared financial objectives.
Proposed company NRBC Asset Management Limited will earn interest and fee based income by pulling fund and
clientele service to the prospective customers. But NRBC Management limited will earn fee based income by providing
ancillary service.
(c) Change in classes of business in which the Bank has an interest [Section 184 (2c) of the Act]
No other changes occurred during the financial year except expansion of network to cover geographical location in
Bangladesh.
(3) Fullest information and Explanation contained in the Auditors’ Report [Section 184 (3) of the Act]
Auditor of M/s. MABS J Partners, Chartered Accountants and M/s. Hoque Bhattacharjee Das & Co., Chartered
Accountants sat with Management of the Bank and Inspection team of Bangladesh Bank on March 28, 2019 for finalizing
the audited Financial Statements. In that tripartite meeting, a threadbare discussion has been made regarding Asset
NRBC Bank 75
quality, Provision, Fair presentation of audited Financial Statement and Internal Control system. Financial Statements
being finalized by adopting recommendation of both Statutory Auditors and Inspection team of Bangladesh Bank.
Thereafter, both Statutory Auditors M/s. MABS J Partners, Chartered Accountants and M/s. Hoque Bhattacharjee
Das & Co., Chartered Accountants placed auditors report along with audited Financial Statements before 26th Audit
Committee of Board held on March 28, 2019. The Board Audit Committee has made threadbare discussion for finalizing
the Financial Statement to form expression of opinion in the Auditors’ Report. The then referred to Board of its 79th
meeting held on 30 March 2019 who have duly reviewed the Auditors’ Reports issued by the Auditors’ based on the
consolidated Financial Statements of the Group for the year ended 31 December 2018.
The Auditors’ did not mention any material misstatement or significant disagreement of the Bank’s consolidated
Financial Statements. The Auditors expressed an unmodified opinion on the consolidated Financial Statements of
the Group viz. true and fair view opinion on the consolidated Financial Statements of the Group for the year ended 31
December 2018.
The Additional Statement in the Directors’ Report according to Notification No. No.BSEC/CMRRCD/2006-158/207/
Admin/80, dated 03 June, 2018 of the Securities and Exchange Commission apart from the Section 184 of Companies
1994:
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i. Banking Industry outlook
Banking industry of Bangladesh has achieved remarkable momentum over the years though a few setbacks occurred in
recent time. It has brought several positive changes in terms of expansion, modernization, quality of assets, application
of international standards, technology adaptation, capacity development efforts, corporate governance, and improved
regulatory and supervisory environment.
c
Banking industry has achieved steady growth in deposit mobilization. Total deposit in banking industry increased to
d.
Tk.10,099 billion in December 2018 as against Tk. 9261 billion in December 2017 representing a growth of 9.05 percent.
On the other hand total banks advances increased to Tk.9,604 billion in 2018 from Tk. 8444 billion in 2017 registering
a 13.74 percent growth. Banking sectors indicators appeared concerning in 2018 as gross non-performing loan (NPL)
ratio increased to 10.30 percent at the end of December 2018 from 9.31 percent in December 2017. There is pressure
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on banking industry for entering into an era of lower interest rates regime. In December 2018, the weighted average
rate on lending of scheduled banks was 11.25 percent. On the other hand weighted average interest rate on deposit
was 6.26 percent increased from 5.01 percent in January 2018.
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The country shipped goods worth $34.66 billion in 2018 and is going to set the export target at $39 billion for FY19,
amounting to 6.36% growth for the current Fiscal year.
Although the year 2019 is expected to be better for banking industry in Bangladesh but following uncertainties appear
will persist.
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• With an increase in non- performing loans negatively affecting financial markets, portfolio selection and
monitoring may become tighter. This may negatively impact on credit growth.
• Inflation risks from higher global commodity prices and exchange rate movements are rising. Consumer
finance may suffer from elevated inflation expectation.
• Reworked Chinese debt contract might impact foreign loan inflows in 2019 and the balance of payments
deficit would remain. As a result, exchange rate depreciation may continue in 2019, coupled with a strong
dollar market across reign.
• Trade tension between the US and China present both opportunities and risks. Bangladesh could benefit from
trade diversion from China and Economic Zone could prosper in terms of FDI inflow as business cost in China
increase.
• Bangladesh Bank’s directives for reduction of AD ratio in coming days will force the banks to collect deposits
at higher rates limiting fresh lending at affordable pricing.
• In order to execute the ongoing mega projects government may borrow huge sums from the banking sector
eventually causing severe impact on the liquidity scenario.
• Flow of wage earners remittance may shrink further.
• As per road map for implementation of Basel III, banks will require maintaining additional buffer capital of 2.5
percent from 2019 onwards and this may cause pressure on Capital Management resulting in curtailing fresh
lending.

ii. Segment-wise performance
Group performance of NRBC and its Subsidiary Company NRBC Bank Securities limited was stable like year of 2017 i.e.
a mediocre performance is shown from the year end consolidated Financials of NRBC Bank Limited. NRBC Bank and
NRBC Bank Securities Limited contributed in group profit by 99.65% and 0.35% respectively. Balance sheet size of NRBC
Securities increases by 87.60%, but Profitability of NRBC Securities goes down due to bearish market as Capital market
faced a challenging year in 2018. After posting a stellar return of 24% in 2017, broad index DSEX declined by 13.8% in
2018, wiping out USD 4.30 billion of market capitalization. Average daily turnover amounted to USD 65.6 million, down
by 37.0% than that in 2017 resulting commission and margin loan erode drastically the profitability of the company i.e.
NRBC Securities declined its profitability by 403.02% than that of 2017.
Amount in Million
Particulars NRBC Subsidiary Consolidated
Cash in Hand & at Bank 6,612.43 82.94 6,656.60
Investment 7,941.55 335.20 8,276.75
Loan & Advances 48,117.78 70.65 48,151.88
Fixed Assets 474.85 7.10 481.96
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Others Assets 2,618.82 21.65 2,279.26
Borrowing 299.27 - 299.27
Deposits c 54,083.28 2.36 54,085.64
Other Liabilities 5,631.94 33.15 5,663.88
Shareholder Equity 7,047.44 406.70 7,094.15
d.
Balance Sheet Size 67,061.94 517.57 67,142.94
Operating Profit 1,889.26 14.90 1,904.16
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Profit after Tax 934.18 3.31 937.49
A setback performance in the capital market also impact on NRBC Bank. Capital gain from listed company is decline
by 354.11% due to market correction was occurred over the year of 2018 though dividend income was impressive
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slightly by 46.75% than that of 2017. The Board of NRBC Bank Securities limited did not recommend any dividend to
the shareholder of the meeting held on March 28, 2019 due to reason mentioned above.
iii. Risk factors and its mitigation alongside future plan of the Bank:
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Banking sector is considered to be the heart of a healthy economy. This is especially true for a developing country like
Bangladesh. Since independence, this sector has kept the wheel of the economy moving forward. So it’s natural that
any disruption in the sector will lead to effects in the economy of the country.
In recent times, the banking sector has received a lot of flak for its rising non-performing loans (NPL), the lack of good
governances, political influence in banking procedures, money laundering and malpractices by some bankers. This has
inevitably affected the efficiency and productivity of the sector, as well as constraining businesses and industries that
truly have the potential to grow and become a pillar of strength for the economy’s long-term growth.
The banking sector has many times been tarnished by several unwanted malpractices. Incidents like loan scam,
Bangladesh Bank cyber heist and others have impacted the image of the banking sector both within and outside the
country.
After having excess liquidity for quite a long time, banks have been facing increasingly more demand for loans from
the private sector since December 2017 which still continued in 2018. While banking sectors exceeded the allowable
loan-deposit ratio (LDR) of 85 percent, as it is a violation of one of the macro-prudential policies. In March 2019, the
Bangladesh Bank (BB) has advised banks to reduce the LDR to 83.50% by September 2019. Further, it will compel banks
to retain and collect a higher amount of deposit to maintain their current level of loans and advances or increase thereof.
Apparently, it will augment the current liquidity crisis of banks. As a result, some Banks and Financial Institutions are
now trying to collect more funds by applying traditional strategy i.e. increasing the rate of interest.
Default loans was the most talked-about issue in the country’s banking sector in 2018. It is slated to reach new heights
as default loans are nearly hitting Tk 100,000.00 Crore for the first time in the country’s 48-year history that plagued
NRBC Bank 77
the financial sector. The country did not encounter any disaster that could have prevented businessmen from repaying
their loans. The economic growth rate has increased and there has been macroeconomic stability in the country but
the number of willful defaulters has increased.
A recent survey of Bangladesh Institute of Bank Management (BIBM) finds that the country’s 28 per cent banks have no
preparation to handle a large-scale cyber attack, while 34% of them are partially prepared to face any. The report finds
that only 38% of the banks have necessary preparation to tackle such attack. Rests of the 62% banks also depend on IT,
but have partial or no preparation to handle hacking.
How to Deal the Business Factor’s in 2018 and future plan for 2019
The Board of Directors has given different directives in the 15 (fifteen) meetings held during the year 2018 (i.e. 62th to
78th) which depicted the Financial Health of the bank as well as the managements were aligned with the motive of the
Board. Bank has taken different initiatives to mitigate Board aspiration:
a. Boosting up deposit mobilization: Different types deposit campaign has been introduced at the beginning
of year 2018, and got response from the market. NRBC Bank redesigned its products and services and set
market sensitive interest rate that helped
bank to get positive response from the
customer for building loanable fund. Bank
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is realigned with the strategies to work on
full force to keep Advance Deposit Ratio
within a tolerable limit.
b. Attached with digital platform of

c
Government: Bank successfully introduced
e-procurement alias e-gp in 2018 and
d.
have earned Tk. 130.00 million profit after
agreement with Central Procurement
Technical Unit of Internal Resources
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Division (IRD).
• This digital platform induced another

avenue for the banking sector and “Shikkhaguru”- (an attractive Deposit and Loan Product) inauguration
bank articulated it successfully. In ceremony for the teachers having preferential service without cost.
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2019, we hope that all of our business

will implement e-tendering system
and, in this regard, a separate desk established at office for the same.
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• Bank also works as sole agent at district level for collection BRTA fees, Tax and VAT which help us deposit
mobilization.
• In 2019, Bank also engaged with the collection land registration fees, tax and VAT which another platform
of the digital Bangladesh. Bank is known to all as a hassle free service provider to the stakeholders and we
are proud for such engagement.
c. Focus on low cost/no Cost Deposit: Bank gave more focus on low/no cost deposits in early 2018, throughout
the year deposit mix gradually improved to low cost concentration. Bit by bit, Bank increased the concentration
on procuring low cost and no cost deposits. Bank also gave up a large amount of high cost large ticket deposits
and replaced those with smaller ticket low cost one and thereby enhanced the granularity in deposit mix. In
2019, Bank are already off to a better start and things are looking up
d. Mitigate AD ratio set by regulator: Earlier of 2018, Bangladesh Bank gave directive to keep the ADR within
83.5%, but, recently it was extended to September 2019. Though Bank is reduced the Advance Deposit Ratio
(ADR) at 85.91% from 92.18%. In line with BB regulations, Bank has realigned the strategies to work on full
force to keep Advance Deposit Ratio within a tolerable limit i.e. 83.50 percent on experimental basis for
approaching BASEL III implementation by January 1, 2020.
e. Leaning toward Retail: The business strategy of NRBC Bank is to expand consumer banking business with a
focus on the small and medium enterprises segment. Since 2018, we are focusing on retail and SME business.
Bank has a long way to go in terms of strengthening the position in retail banking. Bank is providing a number

of offers and services to strengthen our retail loans and advance base. Gradually loan basket shifting the focus
from corporate loans to retail and SME for this year and onwards.
f. Arrest NPL: The Board has undertaken various time bound action to face off various challenges in the year
2018. One of them was the reducing non- performing loans (NPL) or recovery of weak loans. The Board of
Directors has empowered Management to intensify efforts to cut bad loans. The Bank has made great strides
in improving the loan recovery in the last year resulting in 2.94 percent of NPL by end of December. While this
was within the desired limit, in the year 2019 all out efforts will be taken to lower it further.
g. Tailor made services: NRBC has already introduced tailor-made services considering the market demand to
all its valued customers with an impressive array of products and services. In order to make way through the
intense market competition, Bank has rationalized the annual interest rate while focusing on introducing new
discount partners with both the top-notch and up and coming shopping outlets. Services such as Card Cheque,
Loyalty program, Online Collection module, SMS marketing, 0% SimpleBuy Program, Credit card payment
through NRBC Mobile App are being offered to NRBC Cardholders round the year. Bank is also looking forward
to provide services like ATM & Internet Banking real time fund transfer with NPSB,
h. Double in three target: Bank adopted a 03-year plan to ensure sustainable growth in all aspects of deposit,
advance, import, export & profit by
controlling NPL at acceptable level. Bank
had a projection to make all these aspects
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double in number within next three years
i.e. by 2021. Bank wants to gradually
increase the growth and expects to hit the
mark of Tk. 11,000.00 crore in deposits and
BDT 9,000.00 crore in loans and advances
assuming normal market conditions
prevails.
c
i. Ensure corporate governance and
d.
compliance: Unsurprisingly in course of
time, Bangladesh Bank has expressed their
satisfaction on the performance of the
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present Board along with the Management Annual Business Conferenc-2019 was being held at BRAC CDM
and subsequently withdrawn the Observer. Savar, Dhaka with Motto of “Double in 3”.
Withdrawal of the Bangladesh Bank
Observer was one of my pledges to the Bank as the issue stood in the way of building further progression
regarding creating a positive brand image. We always had faith that the Board of Directors would be able to
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maintain compliance and corporate governance.

iv. Economic value of the Shareholder or Multiplier Analysis on Profitability analysis to the shareholder value:
In multiplier analysis to determine the factor affect the profitability to the shareholder, DuPont analysis is one of the
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approaches to decomposing return on equity for better understanding about which factor contributed to the ROE most
and which factor caused the ROE to move. For broader analysis, we used 5 factors model that covers net profit Margin,
total asset turnover and financial leverage. Net profit margin is further broken down to operating profit margin, effect
of non-operating items and tax effects.
ROE
DuPont 2018
First Level Net Profit Margin Total Asset Financial

Breakdown Turnover Leverage/ Equity
Mul�plier
Second Level Opera�ng Effect of Tax

Breakdown Profit Margin Non- Opera�ng Effect
Items
NRBC Bank 79
Particulars 2018 2017 2016 2015 2014
ROE (Shareholder Return) 13.88% 15.30% 15.97% 11.55% 1.75%
Net Profit margin 12.68% 13.92% 14.78% 11.92% 3.24%
Total Asset turnover 0.1186 0.1201 0.1308 0.1538 0.141
Financial Leverage/Equity multiplier 8.2316 9.156 8.2596 6.299 3.826
Tax effect 59.73% 66.46% 66.44% 70.65% 42.75%
Effect of Non-Operating Items 82.45% 75.89% 85.07% 85.94% 55.45%
Operating Profit Margin 25.76% 27.60% 26.15% 19.63% 13.66%
In second level analysis, low Tax BRACket income decreased by 65% than year of 2017 impact on net income i.e. lower
the income effect from 66.46% to 59.73% in 2018 despite of decreasing Corporate Tax rate in the Financial Act, 2018
Tax effect than year of 2017. Loan loss provision decrease 34.83% than the year of 2017 resulting effect non-operating
item improve from 75.89% to 82.73%. Though net interest income increase by 37.38% over the year 2017, but lower
utilization of assets decrease operating profit margin in 2018.
Though two positive impacts in second level analysis, but decreasing trend of Operating Profit Margin has impact on
Net Profit margin compared to that of 2017.
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Efficiency of utilization of total Assets Turnover decreased compared to 2017 due to increase assets having lower yield
along with deterioration of assets quality. Moderate enhancement of deposit mobilization slightly increased of leverage
ratio compared to last year. Therefore, lesser profitability along with default risk downward the shareholder return
compared to the last year.
v. Continuity of Extra-Ordinary gain/Loss by NRBC Bank
c
No such “extraordinary” gains or losses during the financial year of 2018 due to no change in scale of operation,
d.
accounting policy, corporate tax policy, foreign currency exchange, accruals/disposing on long-term contracts, etc.
Recently Finance Minister proposed new proviso 16F “Charge of tax on stock dividend” placed before Parliament on
June 13, 2019 meaning that 15% will be applied on 11% stock dividend if approved in the 6th AGM which has already
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been recommended by Board in its 79th meeting held on March 30, 2019.
If the new proviso 16F “Charge of tax on stock dividend” passed in the parliament, enhancement of paid up capital
will be hurt to align the Board recommendation because its shareholders ownership will be costly without having any
benefit thereof and capacity of the bank will be lessen by amount of Tk.84.89 million to ensure sustainable growth
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which treated as unforeseen loss of entitlement create by policy maker.

vi. Related party transactions and its disclosure
The basis for related party transactions has been stated in the Corporate Governance Report and a statement
of related party transactions has been presented in the Annexure J1 of Notes to the Audited Financial
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Statements.
vii. Initial Public Offering (IPO) or Utilization of proceeds from public issues, rights issues and/or through any others
instruments:
Bank is yet to go for Initial Public Offering (IPO) or did not raise capital fund by issuing any instrument like Bond/
preferred stock etc. Referring to the previous accord by Bangladesh Bank and Bangladesh Security and Exchange
Commission (BSEC), NRBC Bank is supposed to be direct listing in the year of 2019. By this time, Bangladesh Securities
and Exchange commission (BSEC) already extended another two years i.e. March 2021 for submission of application
of Initial public offering (IPO). Considering existing sluggish capital market, the Board of Directors in its 81st meeting
recommended to approach Bangladesh Bank to accord another two years till March 2021 for direct listing with any
Stock Exchange in Bangladesh which is under consideration of Bangladesh Bank.
viii. An explanation for deteriorate of financial results after Initial Public Offering IPO, if any:
Such explanation is not applicable for NRBC because no proceed has yet been collected through Initial Public Offering
(IPO). At the same time, the financial results were so much impressive in the last consecutive 5 year that discussed in
“The State of Affairs of the Company” Segment.
ix. Quarterly Financial Performance and Management explanation variance, if any
Operating performance in 2nd quarter was impressive among the first three quarter in 2018 because of treasury income
i.e. interest on government securities, capital gain from securities & Share contributed to increase profitability. At the
same time, relaxation to keep provision @1% on bills for collection and counter Bank Guarantee issued by MDB/IB vide
BRPD Circular # 07 dated 21 June 2018 effect on the net profit of the quarter. Volatile capital market and delinquency

of the borrower has impact on the profitability of the third quarter. The management had put strong drive to regularize
the classified loan turn into increase interest income by reverting Interest suspense as well as sizable loan and advances
was also increased in the 4th quarter by keeping Advance deposit ratio as directed by Bangladesh Bank.
Taka in million
Particulars Q1, 2018 Q2, 2018 Q3, 2018 Q4, 2018 *QA, 2018 Annual, 2018
Net Interest Income 460.13 473.6 460.13 764.19 539.51 2,158.05
Non-Interest Income 306.46 627.27 105.41 550.73 397.47 1,589.87
Operating Income 766.59 1,100.87 565.54 1,314.92 936.98 3,747.92
Operating Expenses 405.41 528.32 370.31 539.72 460.94 1,843.76
Operating Profit 361.18 572.55 195.23 775.19 476.04 1,904.16
Provisions 293.83 162.70 269.31 -391.58 83.57 334.27
Tax Effect 33.83 105.14 49.48 443.79 158.06 632.24
Net profit 33.52 149.73 24.17 730.23 234.41 937.65
*QA = Quarterly Average
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Apart from regularization of Classified Loan, a chunk of capital gain and income from Investment and income from
exchange of Foreign Currencies of Tk. 1,162.79 has been added to Total income in the 4th Quarter is significantly higher
than quarterly average.
x. Remuneration to Directors including independent directors:

c
Though Independent Director is not prerequisite for Bank in the Board as company is not listed with any stock exchange
in Bangladesh, but appointment of Independent Director is under process. Each Director is entitled to get meeting
d.
attending fees of Tk.8,000.00 and also traveling expenses at actual basis for attending Board and committee meetings
as per BRPD Circular Letter #11 dated October 04, 2015. No other financial benefits were provided to the Directors of
the Bank. The total amount of Directors’ remuneration and the traveling expenses for the year 2018 are shown at the
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Table below.
Serial Number Description Taka in Million

1 Directors’ Fees with VAT 2.05
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2 Traveling and Haulage 11.92
xi. Fair Presentation of the Financial Statements prepared by the management:

The Management of NRBC Bank is responsible for the preparation and fair presentation of the Consolidated Financial
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Statements of the Group and also separate Financial Statements of the Bank in accordance with IFRSs. The said
consolidated Financial Statements prepared by the Management as at and for the year ended on December 31, 2018
have been presented fairly, in all material respect, its State of Affairs, the results of its operations, Cash Flows and Changes
in Equity. The external auditors i.e. M/s. MABS J Partners, Chartered Accountants and M/s. Hoque Bhattacharjee Das &
Co., Chartered Accountants, have also provided their opinion on the same by issuing an unqualified audit report. We
are referring page No. 172 to 174 to see the audit report issued by the external auditors.
xii. Proper books of account maintained by the Bank
NRBC Bank Limited maintains proper books of accounts in line with prevailing law. Bank has a core banking solution
“Bank Ultimus” for proper recording of all transactions in compliance with the Companies Act, 1994 and Bank Companies
Act, 1991. The external auditors i.e. M/S. MABS J Partners, Chartered Accountants and M/s. Hoque Bhattacharjee Das &
Co., Chartered Accountants have provided their judgment on the same in point (iv) in section “Report on Other Legal
and Regulatory Requirements” of their audit report. Page No. 174
xiii. Appropriate accounting policies as well as accounting estimates have been consistently applied in preparation of
the Financial Statements
Accounting policies are the specific principles, bases, conventions, rules and pra ctices applied by an entity in preparing
and presenting Financial Statements. Appropriate accounting policies have been consistently applied to prepare the
Financial Statements of the Bank and accounting estimates are based on reasonable and prudent judgment. Estimates
and underlying assumptions are reviewed on an ongoing basis and any revision to these is recognized in the period.
The significant accounting policies applied and accounting estimates used for preparing the Financial Statements of the
NRBC Bank 81
Bank have been stated in detail in the notes # 2 (Page No. 186) in the Audited Financial Statement.
xiv. Preparation of Financial Statements in compliance with IAS/IFRS, as applicable in Bangladesh, and any Departure
there-from has been adequately disclosed
The Financial Statements of the Bank as at and for the year ended 31 December 2018 have been prepared under
historical cost convention and in accordance with Bangladesh Financial Reporting Standards (BFRSs), the “First
Schedule” (section 38) of the Bank Companies Act 1991, as amended (up to 2018), BRPD Circular No. 14 dated 25th
June 2003, other Bangladesh Bank Circulars, the Companies Act 1994, the Securities and Exchange Commission Rules
1987, and other laws and rules applicable in Bangladesh.
However, if the requirement of provisions and circulars issued by Bangladesh Bank differ from those of other regulatory
authorities and accounting standards, the provisions and circulars issued by Bangladesh Bank shall prevail.
As such the Bank has departed from certain specific requirements of BAS/BFRSs which contradict with those of
Bangladesh Bank, being the prime regulator, which are adequately disclosed in Note 2.2 (i) to (xiv) in the Financial
Statements.
xv. The system of internal control has been effectively implemented and monitored
An internal control system comprises the whole network of systems established in an organization to provide reasonable
assurance that organizational objectives will be achieved. NRBC Bank has designed its internal controls system (i.e.
structured Internal Control and Compliance (ICC) Division) in such so that safeguard of shareholders’ investments and
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the Bank’s assets are to be ensured. Therefore, the main objective of internal control in NRBC is to help the bank
perform better through the use of its resources. Through internal control system bank identifies its weakness and takes
appropriate measures to overcome the same. The Board retains the ultimate responsibility for its operations, though
it has delegated to the Audit Committee for the review of the adequacy and effectiveness of the system of internal
controls.
c
A resonant internal control system helps a bank growing in a safe and sustainable way. The design and implementation
of any internal control system depends largely on a bank’s size, the mode of its operation and its risk profile. Effective
d.
control practices generally include –
 Control Environment
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 Risk Assessment
 Control Activities
 Segregation of Duties
 Accounting Information and Reconciliation
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 ICT Security
 Self-Assessment/Monitoring
Bank properly delegates authority to employees. Duties and responsibilities of all the employees are written and
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approved by the appropriate authority. NRBC Bank Limited has its recruitment policies and training programs to educate
its workforce. Recruitment and policies are strictly followed by the bank in hiring employees. Employees go through
proper training programs, which are designed in a way that bring out the best of the employees. As per directive of
Bangladesh Bank,
NRBC Bank has formed a Risk Management Committee (RMC) of the Board and a Risk Management Unit (RMU) as per
Bangladesh Bank guidelines to oversee and monitor bank wide risk assessment, identification, measurement, analysis
and mitigation activities performed by different risk management functions. RMU under supervision of RMC of the
Board sets the risk appetite of the Bank.
NRBC Bank always properly authorizes all transactions and activities. Bank regularly segregates authorization functions,
recording and custodian function.
NRBC Bank always maintains accurate records of all financial transactions in the Core Banking Solution “Bank Ultimus”
as well as restricts physical access to the system by unauthorized users to protect records and documents. Furthermore,
it also ensures reconciliation between two independently maintained records.
NRBC Bank has an independent Internal Control and Compliance Division (ICCD) which is regularly evaluating, assessing
and rating the risks of various Departments and Branches and submit these audit reports periodically to the Audit
Committee of the Board for their further evaluation and recommendation. The Compliance Unit of ICCD is also
monitoring the regulatory compliance status of NRBC on a continuous basis and updating the relevant departments
upon the compliance of any new issue imposed by regulatory authorities.
However, Bangladesh Bank vide their DOS circular letter no: 17/2012 has launched a Self-Assessment Format in order

to aid Bank for assessing itself and advised Bank to send a quarterly assessment to BB. NRBC has submitted its self-
assessment activities to report to Bangladesh Bank timely.
The external auditors i.e. Hoque Bhattacharjee Das & Co, Chartered Accountants, MABS & J Partners, Chartered
Accountants also provided their opinion on adequacy of internal audit, internal control and risk management functions
of the bank in the “Auditors’ Responsibilities segment” as well as the point (ii) of the “Report on Other Legal and
Regulatory Requirements” of their audit report. The said audit report has been mentioned in page no173-174.
xvi. Protection of minority shareholders’ interest
53 expatriates have taken initiative for formation of NRBC Bank and Board of Directors represent or acts on behalf of
shareholders. Presently no minority shareholdings exist in the proposition share structure. NRBC subsidiary NRBC Bank
Securities has 10% minority shareholding whose interest duly protected in line with statutory remedy in section 233 of
the Companies Act, 1994 of Bangladesh.
xvii. Going Concern of NRBC’s Business Ability
There is no significant doubt upon Bank’s ability to continue as a going concern in the foreseeable future. The
consolidated Financial Statements of the Bank have been prepared on the assumption that the entity is a going concern
and will continue in operation for the foreseeable future. Hence, it is assumed that NRBC has neither any intention nor
in need of liquidate or curtail materially the scale of its operations in near future.
The issue of going concern is also reported in the audited financial statement in the Note 2 and also both auditors
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assessment the going concern ability mentioned in their auditors’ responsibility of the audit report issued by them.
xviii. Comparison with the last year’s operating results and, any, deviation thereof
Presently NRBC has 68 branches along with 3 strategic agent banking partners who have 563 sub-agent points all over
the country. Considering network base banking in Bangladesh, NRBC become mid-size bank in this industry. Expansion
of network is creating opportunity for business to channelize the fund from surplus group to potential area.
c
Loan margin is squeezed as deposit collection was costlier than the year of 2017, 11.98% increase of loans and advances
d.
along with change in loan pricing contributed in interest income. Investment income went continuously downside from
2016, low yield in treasury bond and volatile capital market also exist in 2018 resulting investment income is lesser
than 2017. Debt Burden ratio also deteriorated due to ratio of non-interest income and expense was not consistent
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to increase over the year 2017. Expansion/diversification of network has put pressure to increase the administrative
expense by 9.49%. Low profit margin and Assets Turnover decrease the Return on Asset (ROA) and Return of Equity
(ROE) than the previous year 2017.
Summary of performance of 2018 in comparison of 2017:
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Taka in million
Group NRBC Bank Ltd
Operation Result
2018 2017 Change (%) 2018 2017 Change (%)
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Interest Income 5,801.72 4,717.82 22.97% 5,792.02 4,712.90 22.90%

Interest Expenses 3,643.67 3,146.94 15.78% 3,643.92 3,147.98 15.75%
Investment Income 887.25 1,259.20 -29.54% 877.88 1,236.36 -28.99%
Non-Interest Income 702.62 695.77 0.98% 681.77 678.54 0.48%
Non-Interest Expenses 1,843.76 1,683.93 9.49% 1,818.50 1,665.99 9.15%
Total Income 7,391.59 6,672.79 10.77% 7,351.67 6,627.80 10.92%
Total Expenses 5,487.44 4,830.87 13.59% 5,462.41 4,813.97 13.47%
Operating Profit 1,904.16 1,841.92 3.38% 1,889.26 1,813.83 4.16%
Provision for Loans and Others 299.93 404.39 -25.83% 299.93 404.39 -25.83%
Profit Before Tax 1,569.89 1,397.82 12.31% 1,562.38 1,375.47 13.59%
Provision for Tax 632.24 468.88 34.84% 628.04 463.18 35.59%
Profit After Tax 937.65 928.94 0.94% 937.65 912.29 2.78%
Cost income ratio 49.19% 47.76% 3.00% 49.05% 47.88% 2.43%
Return on investment (ROI) 13.89% 15.30% -9.24% 13.95% 15.17% -8.04%
Return on assets (ROA) 1.50% 1.67% -9.93% 1.50% 1.64% -8.48%
Cost of Deposit 7.27% 6.47% 12.36% 7.27% 6.47% 12.36%
NRBC Bank 83
Taka in million
Group NRBC Bank Ltd
Operation Result
2018 2017 Change (%) 2018 2017 Change (%)
Net Assets Per Value 13.71 13.00 5.46% 13.70 13 5.37%
Earnings Per Share 1.82 1.89 -3.61% 1.82 1.86 -2.36%
xix. Operating and Financial data over preceding 5 (five) years
NRBC Bank has just completed another successful year of 2018 though negative publicity in the media regarding
Banking Sector prevail all over the year. Bank is able to lowering LD ratio over 2017 by deposit mobilization and prudent
portfolio of investment. All parameters in 2018 are progressive in term of business concern. Almost all the financial
indicators show an increasing trend over the previous period. Remittance increases by 63.30% over the previous period.
Operating Profit, Profit before Tax, and Profit after Tax show increasing movement over the previous period.
Key Operating and Financial data 2018 2017 2016 2015 2014
Loans & Advances 48,117.78 43,000.28 37,408.28 23,227.39 14,412.25
Deposits 54,083.28 45,236.44 44,143.28 28,880.68 17,270.88
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Equity 7,094.31 6,410.80 5,728.73 5,152.92 4,587.85
Balance Sheet Size 67,142.86 57,529.35 53,619.10 36,259.01 24,848.11
Total Contingent Liabilities &
19,455.25 16,591.43 12,934.95 8,651.75 4,492.66
Commitments
Import 26,229.88 24,786.54 18,133.73 12,377.90 7,223.80
Export
c
25,091.91 22,459.69 16,885.62 11,772.60 5,964.80
d.
Remittance 996.19 610.03 409.74 399.3 275.7
Operating Profit 1,904.16 1,841.92 1,537.52 922.42 331.18
Profit Before Tax 1,569.89 1,397.82 1,307.90 792.73 183.63
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Tax Effect 632.24 468.88 438.87 232.65 98.85

Profit After Tax 937.65 928.94 869.03 560.08 84.78
Earnings Per Share 1.82 1.89 1.90 1.26 0.19
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Capital - Core (Tier I) 6,778.83 6,235.42 5,690.27 5,106.67 4,552.86

Capital - Supplementary (Tier II) 592.83 545.13 517.33 338.09 214
Stockholder Equity 7,371.66 6,780.55 6,200.61 5,444.76 4,766.86
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Capital Surplus/(Deficit) 1,130.82 1,137.39 1,319.26 2,567.96 3,125.33

Statutory Reserve 1,050.34 737.87 462.77 203.22 44.39
Retained Earnings 841.32 730.51 627.86 419.29 62.42
Capital Adequacy Ratio 14.03% 13.52% 13.50% 18.93% 29.04%
Cost income ratio 49.19% 47.76% 49.03% 53.81% 66.58%
Return on investment/Equity
13.89% 15.30% 15.97% 11.55% 1.75%
(ROI/ROE)
Return on assets (ROA) 1.50% 1.67% 1.93% 1.83% 0.46%
Cost of Deposit 7.27% 6.47% 6.91% 8.40% 9.81%
Loan Deposit Ratio 85.91% 92.18% 82.99% 77.00% 76.83%
% CL to Total Loans & Advances 2.94% 2.46% 0.52% 0.27% 0.00%
Non-Performing loan (NPL) is alarming for the Banking sector in Bangladesh which soaring up to 26% at the end of
2018. Over the last five year, Non-Performing Loan (NPL) is below the industry average i.e. 3% but it is increasing over
the year. Management is very much concern and has taken necessary initiatives to bring down Non Performing Loan
(NPL) nil. The Board of Directors oversees the Non-Performing loan (NPL) position regularly and provided necessary
directives.

xx. Objective of Declaration of Dividend by Board
The Board of NRBC follow stable dividend policy since 2014 means balanced approach between consistent dividend
payout ratio and increase in value of share. The stable policy helps to increase in value of the company by enhancing
the exposure limit as well as create loanable fund.
Like previous year 2017, the Board of Directors of NRBC Bank recommended @ 11% Stock dividend for the year 2018 in
its 79th meeting held on 30 March 2019 and such dividend will be entitled on the shareholding at record date declared
by Board in its 81st meeting on 28 May 2019.
xxi. Board’s statement on Bonus share or Stock dividend as interim dividend
The Board of Directors did not declare/recommend any bonus or stock dividend of the total 15 Board Meetings were
held during the year 2018 while Financial Statements placed before Board by Management. The Board of Directors also
affirmed that Company i.e. NRBC Bank Limited has no intention to declare any interim dividend in the form of Bonus
or Stock Dividend in 2019.
xxii. Board meetings held during the year 2018 and Members’ attendance thereof
The Board of Directors that stands as on December 31, 2018 was approved by the 5th Annual General Meeting held
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on 21 July 2018. The AGM accordingly forwarded the applications to Bangladesh Bank for approval and in return,
Bangladesh Bank on August 14, 2018 approved reconstitution of 10-Member Board of Directors. However prior to the
approval, the Board of Directors conducted their meetings as per previous composition of Board Members in the usual
manner. The Board discussed the issues placed before them in each meeting and subsequently decisions are adopted
in a prudent way fulfilling their duties to the best of their abilities.
c
The Board holds meeting on a regular basis usually once in a month, but emergency meetings are called when required.
During the year 2018, as per approval of 1st Extra-Ordinary General Meeting (EGM) which was held on July 21, 2018
d.
and subsequent consent of Bangladesh Bank, the meetings of Board of Directors were also held in participation of the
members through video conferencing in accordance to the Articles of Association of the Bank.
During the year 2018, total 15 Board Meetings were held. The attendance records of those meetings are as follows:
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Sl. Name of the Members Status Total Number of Meetings Attended

01 Mr. S M Parvez Tamal Chairman 15 / 15
02 Mr. Mohammad Shahid Islam, MP Vice Chairman 12 / 15
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03 Mr. Rafikul Islam Mia Arzoo Director 13 / 15

04 Mr. Mohammed Adnan Imam Director 14 / 15
05 Mr. Mohammed Oliur Rahman Director 08 / 15
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06 Mr. Abu Bakr Chowdhury Director 13 / 15

07 Mr. Loquit Ullah Director 11 / 15
08 Mr. Mohammed Nazim Director 14 / 15
09 Dr. Nuran Nabi Director 10 / 15
10 Mr. Mohammed Manzurul Islam Director 12 / 15
However, in addition to the aforementioned Members, the following Sponsors also acted as Directors of the Board up
until August 14, 2018:
Sl. Name of the Members Status Total Number of Meetings Attended
01 Engr. Farasath Ali Director 05 / 07
02 Dr. Toufique Rahman Chowdhury Director 05 / 07
03 Mr. ABM Abdul Mannan Director 01 / 07
04 Mr. Mohammed Enayet Hossain Director 03 / 07
05 Mr. Md. Amir Hossain Director 03 / 07
06 Engr. Syed Munsif Ali Director 06 / 07
NRBC Bank 85
The attendance records of the above include presence of respective Alternate Directors and presence through video
conference where applicable.
xxiii. The Pattern of shareholding in aggregate number of share and disclosure thereof
a) Parent/Subsidiary/Associated Companies and other related parties
53 distinguished Non-Resident Bangladeshis had taken initiative to establish NRB Commercial Bank Limited (NRBC
Bank) which was incorporated on February 20, 2013 as a Public Limited Company under the Companies Act, 1994 (Act
No.18 of 1994). Bank has neither any parent/Associated yet to exist, nor its only NRBC Bank Securities limited hold any
share of the Bank i.e. all share hold by Sponsors/Promoters of the Bank.
b) The Shareholding Pattern
The Shareholding Pattern of the Sponsors/Shareholders on record date July 01, 2019:
Holding Range Number of Shares Number of Sponsors/Shareholders Percentage of Shares
25000001 and above 89,375,454 3 17.37%
20000001-25000000 181,177,406 8 35.21%
15000001-20000000 81,174,099 5 15.78%
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10000001-15000000 68,264,692 6 13.27%
5000001-10000000 55,442,310 8 10.78%
01-5000000 39,066,173 35 7.59%
Total 514,500,134 65 100.00%
c
Ownership Composition based on Record Date (01 July 2019)
d.
As on record date July 01, 2019 for entitlement of share for year ended 31 December 2018, Directors’ of NRBC Bank
hold 55.32% of total share and remaining share hold by Sponsor/Shareholder 48.68%. No institutions held any share
of the Bank.
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2018 2017
Status with the Bank % of total Number of % of total
Number of Shares
Shareholding Shares Shareholding
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Directors 220,165,634 42.80% 329,291,319 67.21%

Sponsor/Shareholder 294,334,500 57.20% 160,708,827 32.79%
Institutions - - - -
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Shareholding structure of Directors are as follows(as of 31 December 2018)
SL Director Status No of Shareholding % of Total Shareholding
1 Mr. S.M Parvez Tamal Chairman 25,152,199 4.89%

2 Mr. Mohammad Shahid Islam, MP Vice-Chairman 23,144,100 4.50%
3 Mr. Rafikul Islam Mia Arzoo Director 23,413,554 4.55%
4 Mr. Mohammed Adnan Imam, FCCA Director 16,038,680 3.12%
5 Mr. Mohammed Oliur Rahman Director 21,763,116 4.23%
6 Mr. Abu Bakr Chowdhury Director 23,144,100 4.50%
7 Mr. Loquit Ullah Director 21,751,058 4.23%
8 Mr. Mohammed Nazim Director 23,154,861 4.50%
9 Dr. Nuran Nabi Director 2,314,410 0.45%
10 Mr. Mohammed Manzurul Islam Director 1,173,868 0.23%
Total 181,049,946 35.20%

Following sponsors also acted as Directors of Board until August 14, 2018
11 Mr. ABM Abdul Mannan Director 35,194,769 6.84%
12 Mr. Mohammed Enayet Hossain Director 29,028,486 5.64%
13 Mr. Md. Amir Hossain Director 23,176,617 4.50%
14 Engr. Farasath Ali Director 16,991,019 3.30%
15 Dr. Toufique Rahman Chowdhury Director 11,572,050 2.25%
16 Engr. Syed Munsif Ali Director 10,748,685 2.09%
Total 307,761,572
c) Shareholding position of Directors, CEO, CFO, CS and HoICC along with their spouse and minor child
A director of the Bank is being appointed/elected on account of holding prerequisite share mentioned in the
Memorandum and Article of association as well as approval from Bangladesh Bank according to Banking Companies
Act, 1991 (up to amended 2018). Role and responsibility of a director prescribe by BRPD Circular no. 11 dated October
27, 2013 explain that None of the Director(s) will be involved or take part as Ex Officio in the operation of the Bank
except communication of the decision through Chief Executive Officer for implementation. Shareholding positions of
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the directors are mentioned in the para b.
According to new enactment # SEC/CMRRCD/2006-158/207/Admin/80 issued by Bangladesh Securities & Exchange
Commission (BSEC) dated June 10, 2018 along with BSEC already been accorded the extension vide their letter no.
BSEC/CI/CPLC/2013/300 dated May 07, 2019 of listing with the stock exchange in Bangladesh till March 2021 that’s way
Ex-officio mentioned above was not possible to hold any share through Beneficiary Owners (BO) Account. At the same,
c
presently, available information regarding transfer of shares between person to person through 117 & RJSC, None of
Ex-Officio i.e. Chief Executive Officer, Company Secretary, Chief Financial Officer and Head of ICC held any share during
d.
reviewing period.
d) Shareholding position by Executive(s) of the Bank :
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Like para (c) mentioned above, no Executive(s) of Bank hold any share during reviewing period. Following top 5
Executives did not hold any Share:
SL Name Functional Designation

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1 Mr. Khondoker Rashed Maqsood, Managing Director Chief Executive Officer

2 Mr. Md. Mukhter Hossain, Deputy Managing Director CAMLCO
3 Mr. Kazi Md. Talha, Deputy Managing Director DMD (Operations)
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4 Mr. Kabir Ahmed, Senior Executive Vice President Head of ID & DCAMLCO
5 Mr. Hajjaj Bin Mahfooz, Senior Executive Vice President Head of Principal Branch
e) 10% or more holding of Share by shareholders : No shareholders of NRB Commercial Bank hold 10% or more
Shares.
Rotation of Directors
At the General Meeting in every subsequent year, 1/3 (one third) of the Directors who have been holding longest office
shall retire from office. A Director retiring by rotation shall be eligible for re-election. The Bank will follow the conditions
and rotate the Directors as per laws.
Appointment of Auditors of the Bank [Section 210 of the Act]
M/s. MABS & J Partners, Chartered Accountant and M/s. Hoque Bhattacharjee Das & Co., Chartered Accountant were
statutory auditors for the year 2018 and has completed 2st year and 3nd year of Audit of the Bank respectively. M/s.
Hoque Bhattacharjee Das & Co., Chartered Accountant is not eligible for appointment in compliance with Bangladesh
Bank BRPD Circular Latter No.12 dated 11 July 2001 although Appointment of auditors is effected in pursuant of the
section 210 (2) of the companies Act, 1994 seconded by Article 149 of the Articles of Association of the Company (NRBC
Bank Limited)
NRBC Bank 87
Quote
The Company at each Annual General Meeting shall appoint one or more Auditors being Chartered Accountants to hold
the office until the next Annual General Meeting.
Unquote
However, final approval of appointment of Auditors will be confirmed from Bangladesh Bank subject to terms and
condition of the BCD Circular Letter no. 33 dated 23 December 1992 along with BRPD Circular Letter no. 12 dated 11
July 2001.
M/s. MABS & J Partners, Chartered Accountant is eligible for reappointment for 2019 In compliance with aforesaid
Bangladesh Bank BRPD Circular Latter mentioned above, and, in this regards, they submitted their expression of interest
for appointment.
The appointment of auditors yet to recommend by Board of Directors till 81st meeting and it will be placed before
82nd meeting which will be held before AGM. Thereafter final accord of appointment along with remuneration will
be effected in the 6th Annual General Meeting (AGM) of the Bank. There upon the matter would be forwarded to
Bangladesh Bank for taking consent/certification of being appointed eligible auditors of the Bank for the Financial Year
2019 or hold office up to next AGM.
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Contribution to National Exchequer
“No nation has ever taxed itself into prosperity.” ― Rush Limbaugh
On March 16, 2018, for the second time in the history of independent Bangladesh, the country was adorned with a
crown for its achievements in development. By becoming eligible for graduation from LDC, Bangladesh has taken its
c
status to a new height. Many economists opined that Tax-GDP ratio does not keep pace with development process
of Bangladesh. Hon’ble Finance Minister proposed the reform in the tax system in his budget speech FY 2019-20
d.
such as Taxes Zone will be increased to 63 from existing 31, for making the tax administration more goal-oriented,
job-oriented and taxpayers-friendly, the tax intelligence, investigation, and enforcement unit; digital tax management
unit; tax deduction management unit; tax information unit; international tax unit; taxpayer service, public relations
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and infrastructure unit; and tax dispute resolution unit will be set up. Successful implementation of these initiatives,
revenue on average will grow by 25 percent in the coming years, and the Tax-GDP ratio will increase to 15 percent by
2021.
NRBC Bank is always compliant with the Tax and Vat Rules and Regulation to become vibrant for government blood on
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the way to build a civilized society. Hence, the NRBC Bank deposited/paid corporate tax on income, withheld Tax, VAT
and Excise Duty to government exchequer on time are shown below:
Khat of Govt. Revenue 2018 2017 2016 2015 2014

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Corporate Tax paid by bank & Tax deduction at Source 1,089.14 975.61 618.35 305.64 202.15
VAT 89.93 84.9 53.98 36.07 32.11
Excise Duty 90.05 66.15 45.34 29.69 11.21
Total 1,269.12 1139.41 717.67 371.4 245.47
The NRBC Bank has paid/deposited corporate tax of Tk. 540.26 million in the Financial year 2018(Assessment Year
2018-2019 and 2018-2019) in compliance relevant provision of Income Tax Act, 1984, out of total deposit tax deposit
to the treasury mentioned in the table. The Bank has paid Tk. 89.93 million as VAT to the government which is 5.92%
higher than 2017 and 66.60% higher than that of 2016. On the other hand Excise Duty from depositors and loan
account holders was deposited Tk.90.05 million in 2018 is 36.13% higher than 2017. In total Tk.1,269.12 million has
been deposited/paid to government treasury in 2018 which is higher than 12.64%.
Closure of Share Transfer Books and Record Date for Dividend
The Board of Director in its 81th meeting held on May 28, 2019 decided that the Register of Members and the Share
Transfer Books of the Bank will be closed from Monday, July 01, 2019 for the purpose of the 6th Annual General Meeting
of the Shareholders of the Bank to be held on July 20, 2019 and to determine the names of the Members who would
be entitled to dividend, if any, declared by the Bank for the financial year ended 31st December 2018.
The said dividend shall be paid to those Members whose name appears on the Register of Members of the Bank as the
close of business hours on Monday, July 01, 2019.

6th Annual General Meeting
The 6th Annual General Meeting of the Company to be held on 20th July 2019, Saturday, at 11:00 am at Boardroom of
the Bank, Silver Tower, 52 Gulshan Avenue, Gulshan-1, Dhaka.
Acknowledgments
We would like to place on record gratitude for all the guidance and co-operation received from the Bangladesh Bank
and regulatory agencies. However, the outcome of the year 2018 would have not been possible if not for persisting
support and encouragement from all stakeholders. As a 4th Generation Bank, NRB Commercial Bank Limited is able to
explore different avenues of financial services to mitigate the demand of the society. This progress is primarily attributed
to its teamwork, prompt and prudent decision making, efficient and cordial service, economic use of resources and
technologies.
As always, our Bank will continue to be judicious. It will continue to leverage its distribution strength and digital
platforms to offer a similar experience to customers across urban, semi-urban and rural area. Needless to say, the Bank
will continue to focus on its five core values, namely, Customer Focus, Operational Excellence, Product Leadership,
People and Sustainability
The Board also expresses its deep sense of appreciation to all the employees of the Bank for their strong work ethic,
excellent performance professionalism, teamwork, commitment and initiatives which has led to the Bank on the way of
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a sustainable organization to become peerless in the Banking Industry.
Best regards and best wishes to all.
On behalf of the Board of Directors,
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S M Parvez Tamal
Chairman
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NRBC Bank 89
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Audit committee Report

Credit Ratings
Report on the Activities of the Audit Committee
Dear Shareholders and Stake holders
I am pleased to present our Annual audit Committee Report, which provides insights into our work and the issues we
dealt.
I disposed my duty as a chairman of audit committee from 27 December 2017 by duly reconstituted by the Board of
directors 61st Board meeting held on December 10, 2017 in accordance with Bangladesh Bank guidelines BRPD circular
no 11, dated 27th October, 2013 along with Bangladesh Securities & Exchange Commission (BSEC) Notification No.
BSEC/CMRRCD/2006-158/207/Admin/80 dated 03 June, 2018. The Audit Committee was formed with the objectives to
establish a platform for a compliant and secured banking structure in the Bank.
The present committee Board was reconstituted in the 69th meetings of the Board of Directors held 19th August 2018:
Date of First
Status with Status with Educational
Sl. Name Duration* Appointment/last
Bank Committee Qualification
Reappointment
1 Mr. Rafikul Islam Mia Director Chairman 1 year and 1 10.12.2017 M.Sc. in Electrical
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Arzoo month Engineering
2 Mr. S M Parvez Tamal Chairman Member 10 months 26.02.2018 Masters in
Engineering
3 Mr. Mohammed Nazim Director Member
c 1 year and 1 27.12.2017 B.A
month
4 Mr. Mohammed Director Member 4 months 19.08.2018 MA in Education
d.
Manzurul Islam and Journalism
The Company Secretary acts as a Secretary of the Committee
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The Audit Committee of NRBC Bank arranged 05 Meetings during the year of 2018. Meeting of the Committee generally
take place immediately prior to a Board meeting in order to maximize the effectiveness of collaboration with the Board.
Audit Committee Meeting Date of Meeting

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20 Meeting of Audit Committee

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25th February 2018
21st Meeting of Audit Committee 27th March 2018
22nd Meeting of Audit Committee 27th May 2018
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23rd Meeting of Audit Committee 22nd September 2018

24th Meeting of Audit Committee 27th November 2018
By invitation, the chairman of the Board, Managing director & CEO, Chief Financial Officer and Head of internal control
& Compliance and external Auditors were present in the above Audit Committee meeting.
Below is the table wherein highlight the issues, amongst others, were reviewed and discussed. At the same, what’s
priorities set for 2019:
Highlights/ Activities in 2018 Key areas/ Priorities for 2019

All committee members were active and participated in Oversee the activities new auditors, if any, supposed
meeting and show their expertise to become a compliant to be appointed in the 6th AGM as Joint Auditor M/s.
bank in the industry though the committee was further Hoque Bhattacharjee das & co., Chartered Accountant,
reconstituted on August 19, 2018. is completed the 3rd year.
Approved Risk-Based Audit Plan-2018” to perform Upcoming year of 2020 is crucial for bank as Bank must
inspection in the Bank in view to strengthen internal be listed with any stock exchange within March 2021
control system or addressing the key risk area, beyond accord by BSEC. So committee would have keen interest
financial reporting & compliance. of its compliance on newly adapt Corporate Governance
Codes (CGC) on 03 June, 2018.

Highlights/ Activities in 2018 Key areas/ Priorities for 2019
Critically review/examine Inspection reports on the The committee will oversee the effectiveness of Bank’s
branches, divisions and departments of the Corporate internal Control on an ongoing basis after strengthen the
Office prepared by ICCD and advice appropriate action so internal control team.
that risk factors could not affect the business, its financial
& public reporting. Continuous improvement will be highlighted indifferent
audit areas.
Review the Audit Report issued by Auditors under new The committee will monitor the Control mechanism
format promulgated by ICAB and the recommendations whether it appropriate in contest of the passage of time
to the Board therein. Auditors were paid their expertise and further recommend its improvement, if required.
to form opinion in line with the financial health and
compliance of the Bank.
The committee oversee new Corporate Governance Codes The committee will ensure that Banking rules &
(CGC) adopt by BSEC on 03 June, 2018 wherein it directed regulations are meticulously complied by all Branches
to comply all the corporate whose issued or to be issued /Divisions /Department as outcome of the audit/
capital from market. inspection/investigation by ICCD.
Review the position of classified/defaulted loans and The committee should report to the Board of Directors
advances in every quarter and most importantly Top 20 of the Bank regarding their findings and providing
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classified account on regular basis to keep down or protect corrective measures to establish good governance
the Asset quality of the Bank which the collaboration of within the Organization.
the Board.
Sometime advice to take rigorous actions to the willful

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defaulter.
Critically review the Annual Health Report of NRB The committee importantly emphasis on Risk Based
d.
Commercial Bank Limited prepared on basis Financial Audit at the Branch and Head office with the contest of
year 2017 under guideline of Bangladesh. Bank achieved risk assessment matrix of various business and control
acceptable score for the year 2017 functions risks. The committee also monitors the
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effectiveness of Risk Based Audit.
Certification on effectiveness of Internal Control Policy, The Board of viewed the “Arrest NPL” in 2019, The
Practice and Procedure conducted ICCD on view point of committee also work on it to monitor the default
maintaining the internal control system of the Bank. borrower and more importantly documentation of loan
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file.
The compliance status of the audit objections and “Double in three” The Board and Management adopt a
the recommendations made by the Bangladesh Bank target of doubling the profit within 2021 by exploiting
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Inspectors and External Auditors assets and liability. The committee will put strong
monitoring the target that will be achieved without
having any deterioration of the assets.
Review the manpower requirement of Internal control &
Compliance Division (ICCD) and recommend for recruiting
experience professional to ensure effective internal
control system and interest of the Bank.
Apart from above, Like previous year, the minutes of Audit committee meeting containing various suggestion and
recommendation to the Management and the Board are placed for rectification on regular basis.
Rafikul Islam Mia Arzoo

Chairman of the Audit Committee of the Board
NRBC Bank 93
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d.
External Credit Ratings
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Long Term A
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Rating 2018 Short Term ST-2

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Rated By CRISL Outlook Stable

Dated of May 30, 2019
Rating Rationale
Bank/FIs rated in this category are adjudged to offer adequate safety for
timely repayment of financial obligations. This level of rating indicates
Long Term rating a corporate entity with an adequate credit profile. Risk factors are more
A (Pronounced as A) variable and greater in periods of economic stress than those rated in the
higher categories.
Short Term rating High certainty of timely payment. Liquidity factors are strong and supported
ST-2 by good fundamental protection factors. Risk factors are very small.
Surveillance Rating for the previous year 2017
Long Term Short Term Outlook

A ST-3 Stable

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Compliance on Corporate Governance

NRBC Bank’s Compliance
on
Corporate Governance(CG)
Corporate Governance (CG) primarily aims to enhance transparency and accountability. The corporate governance framework
is there to encourage the efficient use of resources of an organization and equally require accountability for the stewardship
of the resources. Governance structures and principles identify the distribution of rights and responsibilities among different
participants in the corporation (such as the Board of directors, managers, shareholders, creditors, auditors, regulators, and
other stakeholders) and include the rules and procedures for making decisions in corporate affairs.
Recently Bangladesh has fulfilled the eligibility criteria set forth by the United Nations (UN) to be recognized as a developing
country. Corporate Governance practices in Bangladesh are gradually being introduced in most financial enterprises. NRBC Bank
is no exception from that.
Since the starting of its journey from 18 April 2013; NRBC Bank has established as a good brand name. Such success has
been achieved through proper functioning in each and every sector of the organization, including focusing on application by
corporate governance. The bank is formed and evolved in line with the granted corporate governance practices and guidelines
of Bangladesh Bank and other concern authority. As a private sector bank, it attaches utmost importance on the well defined
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corporate governance standards which include among others, compliance, disclosure, transparency.
Guidance for Corporate Governance

NRBC Bank gets direction in its corporate governance BOD’s and
Its Committees
practices mainly from two regulatory bodies: (1) c
Bangladesh Bank (Central Bank of Bangladesh) and
(2) Bangladesh Securities and Exchange Commission Monitoring,
d.
(BSEC) as an incorporated organization in Bangladesh. Supervision Legal Framework
and Control (Under The Control of
Mission Vision BB, MoF, NBR, BSEC Etc.)
Conversely, corporate governance philosophy of
NRB Commercial Bank covers regulatory and legal
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requirements imposed by BB and BSEC in addition Core Corporate

Strategy
to its diverse internal rules, policies, procedures and Values Governance
practices based on the best practices of local and global

banks. ‘Due diligence’ in observing responsibilities by Development and
Goals and
Human Resources
the Board, as well as, by the management to protect Objectives
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Implementation of Development
interest of depositors, shareholders, employees Policy
and Guideline
and Control
and the society in general is indicated as ‘Corporate

Governance’ at NRBC Bank. “Transparency” and
“Accountability” are very important pillars of a good Transparency
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and Accountability
corporate governance structure, backed by strong
Internal Control and Compliance arrangement and
MIS facilities.
Board of Directors
NRBC Bank’s present Board of Directors comprises of 13 members including ex-officio Managing Director & CEO of
the Bank. All the Members of the Board, except the Managing Director & CEO, are NRBs coming from a diverse set of
multicultural backgrounds with areas of expertise in different sectors. When it comes to the Directors, the Board of
NRBC possess an array of knowledge with a blend of experience in banking, financial, industrial, technological, real
estate sectors among others.
The Chairman of the Board of Directors is Mr. S M Parvez Tamal who is a Bangladeshi born Russian citizen. He is an NRB
having a wide range of experience in the IT and real estate sectors in EU. The Chairman is also a qualified engineer,
successful entrepreneur, philanthropist and a visionary who helped NRBC to walk the path of compliance by leading
from the front.
The Vice Chairman of the Board of Directors is Mr. Mohammad Shahid Islam, MP is also another NRB who hails from
Kuwait having business in Kuwait and various government & commercial contracts internationally and in financial
sector. He is the present Member of Parliament of Laxmipur-2 of Bangladesh.
The Chairman of Executive Committee is Director Mr. Mohammed Adnan Imam, FCCA who hails from UK and the
Chairman of Board Audit Committee is Director Mr. Rafikul Islam Mia Arzoo who is a successful entrepreneur from
Russian Federation.

In this trail, all the Board members come from different parts of the world such as Italy, UAE, USA etc. and thus enrich
the level of expertise of the entirety of the Board of Directors.
Apart from the non-executive Directors, the Managing Director & CEO Mr. Khondoker Rashed Maqsood also comes
from a trail of reputed banking institutions of both national and international arena such as the Citi Bank N.A. and
American Express Bank. With the mix of diversified experience and skills, he is also a valuable member of the Board who
works on both side of the institution – i.e. the Management side and the Board side.
The present Board of Directors is as under:
Date of First Date of Last

Sl. Name of the Directors Status
Appointment Appointment
Chairman &
01 Mr. S M Parvez Tamal 20.02.2013 14.08.2018
Non-Executive Director
Vice Chairman &
02 Mr. Mohammad Shahid Islam, MP 20.02.2013 14.08.2018
Non-Executive Director
03 Mr. Rafikul Islam Mia Arzoo Non-Executive Director 20.02.2013 14.08.2018
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04 Mr. Mohammed Adnan Imam, FCCA Non-Executive Director 20.02.2013 14.08.2018
05 Mr. Mohammed Oliur Rahman Non-Executive Director 20.02.2013 14.08.2018
06 Mr. Abu Bakr Chowdhury Non-Executive Director 20.02.2013 14.08.2018
07 Mr. Loquit Ullah Non-Executive Director 20.02.2013 14.08.2018
08 Mr. Mohammed Nazim
c Non-Executive Director 20.02.2013 14.08.2018
d.
09 Dr. Nuran Nabi Non-Executive Director 20.02.2013 14.08.2018
10 Mr. Mohammed Manzurul Islam Non-Executive Director 20.02.2013 14.08.2018
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11 Mr. Abu Mohammad Saidur Rahman Non-Executive Director 19.05.2019 19.05.2019

12 Mr. AKM Mostafizur Rahman Non-Executive Director 19.05.2019 19.05.2019
13 Mr. Khondoker Rashed Maqsood 04.04.2018 -
& Executive Director
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Composition of Board of Directors
The 13-Member Board of Directors of NRBC Bank is comprised of 12 Non-Executive Directors including the Chairman
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and the Vice Chairman and 01 Executive Director i.e. the Managing Director & CEO.
NRBC’s Policy on Appointment of Directors
The Directors of NRBC Bank, except the ex-officio Director (the Managing Director & CEO) are elected by the Shareholders
of the Bank subject to obtaining approval from Bangladesh Bank. In case of the Managing Director & CEO, the Board of
Directors nominates a person having qualifications fulfilled as mentioned in the Bangladesh Bank regulations for being
appointed as the CEO of a Bank Company and seeks approval from Bangladesh Bank.
In case of appointment of non-executive directors and executive director, NRBC Bank complies with the direction of
the regulatory authorities as regard to the appointment of Directors. The Directors are appointed complying with
the regulations mentioned in the BRPD Circular No. 11 dated 27.10.2013 issued by Banking Regulations and Policy
Department, Bangladesh Bank. In case of appointment/re-appointment/rotation/election/reelection/removal/casual
vacancy of the Directors, the regulations issued by Bangladesh Securities and Exchange Commission (BSEC), The
Companies Act 1994, Bank Company Act 1991 (Amended up to 2018), Articles of Association of NRBC Bank are also
meticulously followed.
Retirement and Election of Directors
As per Companies Act 1994 and Articles of Association of the Bank, one-third (1/3) of the Non-Executive Directors are
to retire from the office of the directors each year and depending on eligibility may offer themselves for re-election at
the Annual General Meetings of the Bank.
NRBC Bank 97
Responsibilities of the Board of Directors
The responsibilities of the Board of Directors have been stipulated in detail in the BRPD Circular No. 11 dated 27
October, 2013.
In order to ensure good governance in the Bank management, it is essential to have specific demarcation of
responsibilities and authorities among controlling bodies over bank affairs. In the Bank Company Act, 1991 (amended
upto 2018) the newly included Section 15(kha) & (ga) give responsibility to the Board of Directors for establishing
policies for the bank company, for risk management, internal controls, internal audit and compliance and for ensuring
their implementation.
The Board of Directors determines the objectives, goals, lay out strategies and work-plans
on annual basis. The Board engages itself in the affairs of making strategies consistent with
the determined objectives and goals and in the issues relating to structural change and
Laying out work reformation for enhancement of institutional efficiency and other relevant policy matters.
plan and strategic
The Board has its analytical review incorporated in the Annual Report as regards to the
management
success/failure in achieving the business and other targets as set out in its annual work-
plan and apprises the shareholders of its opinions/ recommendations on future plans and
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strategies. The Board sets the Key Performance Indicators (KPIs) for the CEO & Officers
immediate two tiers below the CEO and evaluates from time to time.
The policies, strategies, procedures in respect of appraisal of loan/investment proposal,
sanction, disbursement, recovery, reschedule and write-off thereof are made with the
Board’s approval under the purview of the existing laws, rules and regulations. The Board
c
distributes the power of sanction of loan/investment. The Board does not interfere directly
Role in Credit and or indirectly into the process of loan approval.
d.
Risk Management
The Board of Directors formulates policies for risk management and advises the Management
to ensure compliance. It monitors the compliance status at quarterly rests and reviews the
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concerned report of the risk management team. The Board monitors the compliance of the
guidelines of Bangladesh Bank regarding key risk management.
The Board of Directors remains vigilant on the internal control system of the Bank in order
to attain and maintain satisfactory qualitative standard of its loan/investment portfolio.
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Role in Internal The Board establishes an internal control system so that the internal audit process can be
control management conducted independently from the management. It reviews the reports submitted by the
Board Audit C ommittee regarding compliance of recommendations made in internal
and external audit reports and the Bangladesh Bank inspection reports.
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The Board frames and approves policies relating to recruitment, promotion, transfer,
disciplinary and punitive measures, human resources development etc. and service rules.
The Chairman or any of the Directors do not get involved with or interfere into or influence
over any administrative affairs including recruitment, promotion, transfer and disciplinary
measures as executed under the set service rules. The Members of the Board are not
included in the selection committees for recruitment and promotion to different levels.
Role in Human Recruitment, promotion, transfers & punishment of the officers immediate two tiers below
Resources the CEO however rests upon the Board.
Management and
Development The Board gives special attention to the development of skills of Bank’s staff in different
fields of its business activities including prudent appraisal of loan/investment proposals.
The Board also gives necessary directives to adopt modern electronic and information
technologies. Such matters are incorporated in the annual work plan of the Board.
The Board follows Code of Ethics for every tier properly. It promotes healthy code of
conducts for developing a compliance culture.

The Board approves the annual budget and the statutory Financial Statements. It reviews
the positions of the Bank in respect of 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.
The Board of Directors formulates the policies and procedures for Bank’s purchase and
Role in Financial procurement activities and approves the delegation of power for making such expenditures.
Management The maximum possible delegation of such power of expenditures rests on the Managing
Director & CEO and his subordinates. The decision on matters relating to infrastructure
development and purchase of land, building, vehicles etc. for the purpose of bank’s
business are adopted with the approval of the Board.
The Board reviews whether an Asset-Liability Committee (ALCO) has been formed and it is
working according to Bangladesh Bank guidelines.
Apart from the above, the Board of Directors also follow and comply with the responsibilities as assigned by the Central
Bank i.e. Bangladesh Bank.
Executive Committee
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The Executive Committee of Board of Directors of the Bank has been formed and delegated by the Board of Directors
for smooth operation of the Bank. Executive Committee performs according to its terms of reference determined by
the Board of Directors.
c
The Chairman of Executive Committee is Mr. Mohammed Adnan Imam. He is a Fellow Member of the Association of
Chartered Certified Accountants (FCCA) from UK. He is an NRB and a citizen of United Kingdom.
d.
Appointment and Composition of Executive Committee
 Members of the Committee are nominated and appointed by the Board of Directors.
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 The present Executive Committee is comprised of 05 (five) members.

 Company Secretary of the Bank acts as the Secretary of the Executive Committee.
Sl Name Status with the Bank Position in the Committee
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1 Mr. Mohammed Adnan Imam, FCCA Director Chairman

2 Mr. Mohammad Shahid Islam, MP Director Member
3 Mr. Mohammed Oliur Rahman Director Member
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4 Mr. Abu Bakr Chowdhury Director Member

5 Mr. Loquit Ullah Director Member
Audit Committee
The Audit Committee of Board of Directors of the Bank has been formed by the Board of Directors to ensure compliance
and corporate governance in the operational activities of the Bank. The Board of Directors approves the objectives,
strategies and overall business plans of the Bank and it is the responsibility of the Audit Committee to assist the Board
in fulfilling its oversight responsibilities. The Committee reviews the financial reporting process, the system of internal
control and management of financial risks, the audit process, and the Bank’s process for monitoring compliance with
laws and regulations and its own code of business conduct.
The Chairman of Audit Committee is Mr. Rafikul Islam Mia Arzoo who is a graduate from Massachusetts Institute of
Technology, USA and a citizen of Russian Federation.
Appointment and Composition of Audit Committee

 The present Audit Committee is comprised of 04 (four) members.
 Company Secretary of the Bank acts as the Secretary of the Committee.
NRBC Bank 99
1 Mr. Rafikul Islam Mia Arzoo Director Chairman
2 Mr. S M Parvez Tamal Director Member
4 Mr. Mohammed Manzurul Islam Director Member
Roles and responsibilities of the Audit Committee
 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 clear understanding of
their roles and responsibilities
 Review management’s actions in building computerization of the bank and its applications and bank’s
Management Information System (MIS).
 Consider whether internal control strategies recommended by internal and external auditors have been
implemented by the management.
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 Consider 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 place it before the Board after
reviewing whether necessary corrective measures have been taken by the management
 Audit Committee checks whether the Financial Statements reflect the complete and concrete information
c
and determine whether the statements are prepared according to existing rules & regulations and standards
enforced in the country and as per relevant prescribed accounting standards set by Bangladesh Bank.
d.
 Audit Committee monitors whether internal audit is working independently from the management. In this
regard, it reviews the activities of the internal audit and the organizational structure and ensures that no
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unjustified restriction or limitation hinders the internal audit process
 Review the performance of the external auditors and their audit reports and examine whether the findings and
recommendations made by the external auditors are duly considered by the management or not.
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 Submit compliance report to the Board on quarterly basis on regularization of the omission, fraud and forgeries
and other irregularities detected by the internal and external auditors and inspectors of regulatory authorities.
The Committee performs any other oversight functions as desired by the Board of Directors and evaluate the
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committee’s own performance on a regular basis.
Risk Management Committee

The Board Risk Management Committee has been formed in order to play an effective role in mitigating impending risks
arising out from strategies and policies formulated by the Board and to carry out the responsibilities efficiently. The
Committee assesses risk factors like credit risks, foreign exchange risks, internal control and compliance risks, money
laundering risks, information and communication risks, management risks, interest risks, liquidity risks etc. The Risk
Management Committee also scrutinizes whether appropriate risk management measures are being put in place and
applied and whether adequate capital and provision is being maintained against the risks identified.
The Chairman of Risk Management Committee is Mr. S M Parvez Tamal who is also the Chairman of the Board of
Directors. He is an NRB with citizenship of Russian Federation.
Appointment and Composition of Risk Management Committee
 The present Risk Management Committee is comprised of 04 (four) members.
 Company Secretary of the Bank acts as the Secretary of the Committee.

1 Mr. S M Parvez Tamal Director Chairman
2 Mr. Mohammed Adnan Imam, FCCA Director Member
4 Dr. Nuran Nabi Director Member
Roles and responsibilities of the Risk Management Committee
 The responsibility of Risk Management Committee is formulation and implementation of appropriate strategies
for risk assessment and its effective control. The Committee monitors risk management policies & methods
and amend it if necessary. The committee reviews the risk management process to ensure effective prevention
and control measures.
 To ensure an adequate organizational structure for managing risk within the Bank effectively. The Risk
Management Committee supervises formation of separate management level committees and monitors their
activities for the compliance of instructions of lending risk, foreign exchange transaction risk, internal control &
compliance risk, money laundering risk, information & communication risk including other risk related guidelines.
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 The Committee reviews the risk management policies & guidelines of the bank annually. The committee
proposes amendments as deemed necessary and forward to the Board of Directors for their approval.
 Risk Management Committee monitors proper implementation of overall risk management policies. It monitors
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whether proper steps have been taken to mitigate all risks including lending risk, market risk, and management
risk.
d.
Hon’ble Chairman, Board of Directors
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The Chairman of the Bank is elected by the Board of Directors and the Board considers the Chairman as independent.
The Hon’ble Chairman is independent of the CEO and does not exercise execution powers in the affairs of the Bank. This
has been in practice since inception of NRBC Bank.
Mr. S M Parvez Tamal is the Hon’ble Chairman of Board of Directors. He is a young entrepreneur, a visionary from
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Bangladesh who is also a citizen of Russian Federation.
Role and Responsibilities of the Chairman of Board of Directors

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The Hon’ble Chairman plays a vital role in the proper functioning of the Board of Directors. The roles and responsibilities
of the Hon’ble Chairman of the Board have been stipulated in the BRPD Circular No. 11 dated 27.10.2013.
 The Chairman is the primary spokesperson and acts as the leader of the Board of Directors. He is primarily
responsible for maintaining smooth proceedings of the meetings.
 As well as being Chairman of the Board, the Chairman is expected to act as the company’s leading representative
that involves the presentation of the company’s aims and policies to the outside parties.
 One of the primary responsibilities of the Chairman is to take the chair at general meetings and Board meetings.
Regarding holding the Board meetings this involves – determining of the order of the agenda; ensuring that the
Board receives accurate, timely and clear information; keeping track of the contribution of individual directors
and ensuring that they are all involved in discussions and decision-making. At all meetings the Chairman directs
discussions towards the emergence of a consensus view and sum up discussions.
 The Chairman promotes effective relationships and open communication, and creates an environment that
allows constructive debates and challenges, both inside and outside the Boardroom, between Non-executive
Directors and the Management.
NRBC Bank 101

 The Chairman also takes a leading role in determining the composition and structure of the Board. This involves
regular reviews of the overall size of the Board, the balance between executive and non-executive directors and
the balance of age, experience and personality of the Directors.
 The Chairman sets a positive, energized tone for Board meetings. By modeling, articulating, and upholding the
rules of conduct that are outlined in the by-laws, the Chairman sets a high standard for Board conduct.
 The Chairman does not participate in or interfere into the administrative or operational and routine affairs of
the bank.
 The Chairman has the power to conduct on-site inspection of any bank-branch or financing activities under the
purview of the oversight responsibilities of the Board.
 The Chairman is authorized to call for any information relating to bank’s operation or ask for investigation into
any such affairs and may submit such information or investigation report to the meeting of the Board if deemed
necessary.
 The Chairman also has the power to effect necessary action in accordance with the set rules through the CEO,
with the approval of the Board of Directors.
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According to The Companies Act 1994, Section 1 (m), ‘managing director’ means a director who, by virtue of an
agreement with the company or of a resolution passed by the company in its general meeting or by its directors or by
virtue of its memorandum or articles of association, is entrusted with the substantial powers of management which
c
would not otherwise be exercisable by him and includes a director occupying the position of a managing director by
whatever name called.
d.
In NRBC Bank, Mr. Khondoker Rashed Maqsood was appointed as the Managing Director & CEO to ensure good
governance as per the approval of BRPD, Bangladesh Bank in accordance with Section 15(4) and (5) of the Bank
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Company Act 1991 (Amended upto 2018) which is also in compliance with the clauses mentioned in the BRPD Circular
no. 11 dated 27.10.2013. Mr. Maqsood is a veteran banker with high profile exposure in the banking industry with Citi
Bank N.A. and American Express Bank.
Role and Responsibilities of the Managing Director & CEO

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The Managing Director & CEO is responsible for the overall success of the Bank Company and for making top-level
managerial decisions. Among others, the following roles and responsibilities are discharged by the Managing Director
& CEO:
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 The Managing Director & CEO heads the management of the Bank in its day-to-day running of its business in
accordance with the business plans and within the budgets approved by the Board.
 Being in the lead of the Bank Company, the Managing Director & CEO ensures effective working relationships
with the Chairman and the Board by meeting or communicating with the Chairman on a regular basis to review
key developments, issues, opportunities and concerns.
 With the adequate support of the Management, the Managing Director & CEO also implements the strategies
and policies as approved by the Board of Directors in pursuit of Bank’s objectives. He also helps to develop
Bank’s strategies and policies for the Board’s consideration.
 The Managing Director & CEO ensures that the management gives appropriate priority to providing reports to
the Board which contains relevant, accurate, timely and clear information necessary for the Board to fulfill its
duties.
 The Managing Director & CEO acts as the leader of the whole Management Team which includes the likes of
Deputy Managing Director(s), Chief Financial Officer, Chief Risk Officer, Senior Executives and Officers as a whole.
He provides necessary motivation and gives necessary directives to execute the financial and administrative
functions of the Bank.

 While being a motivational leader, the Managing Director & CEO also helps the Bank to move forward with
a definitive business plan without deviating from the corporate governance parameters. It is one of the
primary responsibilities of the CEO to ensure banking supervision policies are met devoid of any lapses and all
compliances are done meticulously.
 The Managing Director & CEO, as the Head of the Management Team, is also responsible for any lapses in the
compliance requirements of the Bank Company. He, therefore, monitors the activities of Internal Control and
Compliance of the Bank and from time to time addresses various issues for necessary compliance.
Company Secretary
As stipulated in the Companies Act, 1994, Section 2(u) - ‘Secretary’ means- “any individual possessing the prescribed
qualifications appointed to perform the duties which may be performed by the secretary under this Act and any other
ministerial or administrative duties”. In NRBC Bank, the present Company Secretary is Mr. Md. Mozammel Hossain,
who is an FCA with vast experience in the company affairs.
Scope of work of Company Secretary
 Company Secretary acts with integrity and independence to protect the interests of the company, its shareholders
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and employees.
 Company Secretary plays a pro-active and central role in the governance of the company. This requires excellent
communication skills, a thorough knowledge of the company’s business and applicable regulations, strength of
character, integrity, and above all a professional approach.
c
 To distinguish between the duties which all Company Secretaries should perform (core duties) and those which
they often perform (additional duties). Core duties are defined as those for which the Company Secretary
d.
is responsible as an officer of the company and those undertaken by the Company Secretary as a matter of
established and best practice. The list of core duties is therefore a refinement of statute, common law and good
practice.
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Role and Duties of the Company Secretary
The role of Company Secretary in NRBC Bank is diverse wherein the Secretary has a role to play to the Board of Directors,
to the Bank Company and to the Shareholders of the Bank which are mentioned below:
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The Company Secretary ensures that the procedure for the appointment of directors are
properly carried out and assist in the proper induction of Directors, including assessing the
specific training needs of directors/executive management. Secretary needs also to be available
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Duties to the
to provide comprehensive practical support and guidance to directors both as individuals and
Board
as a collective with particular emphasis on supporting the non-executive directors. It is also a
part of the Company Secretary’s role to raise matters which may warrant the attention of the
Board of Directors.
The Company Secretary ensures compliance with all relevant statutory and regulatory
Duties to the
requirements and that due regard is paid to the specific business interests of the company. The
Company
Secretary also assists in the implementation of corporate strategies by ensuring that the Board’s
decisions and instructions are appropriately carried out and communicated.
The Company Secretary communicates with the shareholders as appropriate and ensures that
Duties to the
due regard is paid to their interests. The secretary also acts as a primary point of contact for
Shareholders
institutional and other shareholders, especially with regard to matters of Corporate Governance.
Asset-Liability Management Committee
An Asset-Liability Committee (ALCO) is a risk management committee comprising of senior management levels of Bank
for coordinating the management of assets and liabilities with a goal of earning adequate returns. It is the practice of
managing risks that arise due to mismatches between the assets and liabilities of the bank. The primary goal of ALCO is
to evaluate and monitor the Liquidity Risk, Interest Rate Risk, Credit Risk, Foreign Exchange Risk, Operational Risk, Gap
Risk and Management Off-Balance Sheet Activities.
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The ALCO structure of NRBC Bank is as follows
CEO / Managing Director (Chairman)
CFO / Head of Treasury (Member Secretary)
Deputy Managing Deputy Managing Head of ID Head of CRMD Head of ALM Desk Head of RBBD Head of RMD Invitee
Director (OPs) Director (bussi) (Member) (Member) (Member) (Member) (Member)
(Member) (Member)
The prime responsibility of Asset and liability Management (ALM) is on the Treasury Department of the
bank, specifically its ALM desk. The Head of Treasury works as Member Secretary of ALCO while Head of ALM Desk
coordinates the Meeting. ALCO meeting are generally held every month regularly and if necessary, special meetings
may be arranged.
• Monitor and review of previous ALCO Actions.
• Formation of an optimal structure of the Bank’s balance sheet to provide the maximum profitability limiting
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the possible risk level;
• Control over the capital adequacy and risk diversification;
• Execution of the uniform interest policy considering economic scenario;

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• Determination of the Bank’s liquidity management policy;
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• Control over the state of the current liquidity ratio and resources of the Bank;
• Control over dynamics of size and yield of trading transactions (purchase/sale of currency, state and corporate
securities, shares, derivatives for such instruments) as well as extent of diversification thereof;
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• Control over dynamics of the basic performance indicators (ROE, ROA, etc.) as prescribed in the Bank’s policy
and more.
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Investment Committee
The Investment committee of NRBC Bank plays crucial role in portfolio management considering risk and return of
Bank. The committee is responsible for taking investment decision in share and securities as well as supervising the
investment, banking, and financing activities of the Bank. It is formed with treasury front office members including head
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of different division and head of the treasury is member sectary of this committee. The member secretary periodically
prepares the report of investment and report to the Managing Director & CEO.
Duties and responsibilities of the investment committee:
• Set the optimal portfolio of shares and securities of NRBC Bank.
• Liable for ensuring compliance of investment policy of Bank.
• Monitor the investment performance and address the various investment related risks including credit, equity
market, foreign exchange & derivatives market, interest rate, and liquidity.
• Review the general portfolio strategies and asset allocation policies.
• Review the impact of various scenario analyses on the financial results arising from capital market.
Risk Culture
Risk culture is the key element of effective risk management process. It is an institution wide approach, in which every
member of the institution is fully aware of the risks associated with his or her functions or activities and knows their
responsibility in the risk management process.
For developing risk culture, NRBC Bank endeavors to create an open and respectful environment for discussing risk

issues, such practice helps employees feel encouraged to speak up at the onset of any new or excessive risks come
to their notice. Bank also believes risk must be understood by all. It is not only a function of people related to risk
management but also a holistic approach across the bank.
Risk Communication and Treatment
NRBC Bank wants to ensure the balance between risk and return through ensuring effective risk management and
establishing healthy organizational ethos. As part of risk communication, senior management actively communicate
the different policies, procedures, rules as well as the roles, responsibilities, accountabilities to the risk owners. So
that employees dealing with risk could be well informed about the risk associated with their activities and know their
responsibilities regarding risk management.
Risk treatment options are not necessarily unique in all circumstances. It depends on scenario and institutions strategy.
For selecting appropriate risk treatment options bank consider the cost benefit analysis, how much cost will be incurred
to implement the risk treatment and how much benefit will be derived. Based on the scenario, bank takes different risk
treatment options, e.g. avoiding, accepting, reducing, and sharing.
Risk Appetite Statement and its monitoring
Beginning of each year Risk Management Division prepared Risk Appetite Statement for various risks and business areas
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in collaboration with concerned division/department considering bank’s business trend, capital adequacy, strategic
planning, liquidity and foreseeable risks. The statement reviewed and approved by Risk Management Committee of
Board. Risk Management Division regularly monitors the compliance of risk appetite statement and submit the same
to Board and Bangladesh Bank through CRMR (Comprehensive Risk Management Report) and MRMR (Monthly Risk
Management Report). During the year 2018 most of the risk indicators (NPL, LCR, NSFR, Large loan Concentration,
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Equity investment, CRAR etc.) were within limit defined in Risk Appetite Statement.
d.
Supervisory Review Process Team
Supervisory Review Process (the Second Pillar of Basel-II and III) of Risk Based Capital Adequacy framework is intended
to ensure that banks have adequate capital to support all the risks in business. At the same time, it encourages bank
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to develop and use better risk management techniques in monitoring, and managing their risks.SRP Team ensures that
bank has a process for assessing the overall capital adequacy in relation to its risk profile, and a strategy for maintaining
capital at an adequate level.
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Composition of the SRP Team
Name of Members Position in the Team

Managing Director & CEO Chairman
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Deputy Managing Directors

Head of Credit
Head of International Division(ID)
Chief Financial Officer (CFO) and Head of Treasury
Head of Credit Risk Management Division (CRMD) Member
Head of Management Information System (MIS) and Research & Development
Head of Internal Control and Compliance Division (ICCD)
Head of Information and Communication Technology Division (ICTD)
Head of Credit Administration Division (CAD)
Head of Corporate
Chief Risk Officer (CRO) & Head of Risk Management Division (RMD) Member Secretary
To discharge its responsibilities the SRP tem performs the followings:
Comprehensive risk analysis- Identification and assessment of following risks and their management:
• Pillar 1 risks- MCR against credit, market and operational risks ;
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• Risks not covered under Pillar 1 – credit concentration risk, interest rate risk in the banking book, liquidity risk,
settlement risk, reputation risk, strategic risk, evaluation of core risk management, environmental & climate
change risks, etc.
• Risks deriving from the economic and regulatory environments, risks resulting from the business performance,
profitability of the bank;
• Develop policy for assessing overall risk profile, and strategy to maintain adequate capital;
• Internal Capital Adequacy Assessment Process (ICAAP) report - identified the amount of internal capital firms
should hold;
• Forward capital planning- assess how firm capital is calculated in capital assessment process in line with its
business plans and how it might respond to these changes- perform stress testing, etc;
• Monitoring and reporting- establish a structure of regular reporting on the bank’s risk profile and capital
position along with stress test findings;
• Implementation of core risk guidelines- review the implementation status of core risk guidelines in the bank
and assess the level of risk and its process of mitigation;
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• Establishment of prudent risk management system.
Basel Implementation Unit
Basel III, the latest capital and liquidity standards for banks prescribed by the Basel Committee on Banking
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Supervision (BCBS) in 2010, as the previous version of capital standard, failed to maintain financial stability during
the global financial crisis in 2008. On that ground, Basel III guideline has been formulated to improve shock resilience
d.
capacity of banks through increasing the quality and quantity base of capital as well as maintaining global liquidity
standard, with an aim to prevent the recurrence of such economic and financial crisis.
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To adopt the international standard, BB issued Guidelines on Risk Based Capital Adequacy (Revised Regulatory Capital
Framework for banks in line with Basel III) through BRPD Circular No-18, December 21, 2014. As per Bangladesh
Bank Instruction NRB Commercial bank formed “Basel Implementation unit for successful adoption of Basel rules and
regulations in banks.
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Executive Risk Management Committee
For proper Identification, measurement and mitigation of bank’s existing and potential risks through detailed risk
analysis, NRBCB has formed a management level risk committee named “Executive Risk Management Committee (ERMC)
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headed by Chief Risk Officer. In ERMC, Risk Management Division (RMD) is acting as secretariat of the committee. The
chairman of the committee is empowered to invite MD&CEO, DMD or other senior executives to aware them about risk
management activities of bank.
Composition of the committee
Name of Members Position in the Committee

CRO & Head of RMD Chairman
Deputy Chief Anti-Money Laundering Compliance Officer
Head of ID
CFO & Head of Treasury
Head of CRMD
Member
Head of ICCD
Head of Branch Operations and Control Division (BOCD)
Head of ICTD
HoCAD

The responsibilities of ERMC are as followings, but not limited to:
• To identify measure and manage bank’s existing and potential risks through detailed risk analysis;
• To ensure the implementation of all the decisions in the meeting minutes with proper dissemination of
responsibilities to concerned divisions/departments;
• ERMC will define and determine risk appetite, limits in line with strategic planning through threadbare
discussions among the members;
• Will implement the decisions of RMC(Risk Management Committee) and Board meetings regarding risk issues;
• Will review the new product, policies and activities and identify the risks associated with, and will ensure risks
are properly measured, monitored, and controlled ;
• Will contribute to formulate risk policies for business units;
Role of the Chief Risk Officer
NRBC Bank has CRO with a designation of Senior Executive Vice President. The Chief Risk Officer (CRO) is a senior
executive responsible for ensuring intense and effective risk management across the bank, and to oversee the
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development and implementation of the bank’s risk management functions as a primary role. The CRO, together with
management, actively engaged in the process of setting risk appetite and limits for various risks and business issues and
their performance related to risk-taking and limit adherence. CRO presents all the existing and foreseeable risk issues
to Risk Management Committee of the Board and actively support them to develop various risk related policies, setting
risk appetite and for translating the risk appetite into a risk limits structure.
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Financial Reporting and Related Internal Control Overview
d.
Distinct roles with respect to financial reporting are carried out by the Audit Committee, Management, and the
Independent Auditor.
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Preparation of the Financial Statements, establishment and maintenance of adequate internal control over financial
reporting is carried out by Management.
Three main areas of fraud risk are focused by the Audit Committee members:
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 Financial statement fraud: It includes intentional misstatements in or omissions from Financial Statements.
 Asset misappropriation: It may include cheque forgery, theft of money, or theft of services.
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 Corruption: It includes schemes such as bribes to influence decision makers, or manipulation of banking fa-
cilities.
Oversight of Risk
The Board plays a critical role in understanding and influencing Management’s processes for identifying, assessing, and
continually monitoring risks given the ever-changing risk landscape & the dynamic nature of business environment.
Board follows a defined risk governance structure. In addition to that continual assessment of the governing structure
is ensured to keep the company in a fit condition for facing new risk.
All enterprise-wide risks are enlisted & maintained & assigned to specific Board committees with focused expertise to
oversee them
Key role in overseeing financial risks is played by the Audit Committee. As & when required by the situation the full
Board takes direct responsibility for and regularly discusses the company’s most strategic risks, which include risks that
could disrupt and materially impact the company’s business strategy. Charters are followed by committees which are
updated to align with the defined risk governance structure.
Area of Internal Control System of NRBC

The internal control system of NRBC enables the Bank to establish a culture that does not encourage corruptibility &
fraudulent activities. Pictorial presentation of key features of the internal control system is given below:
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Controlling Area of Internal Control & Compliance
Expectations regarding the control environment which
comprises the integrity and ethical values of NRBCB at various
levels is reinforced by the Board of Directors along with Senior
Management.
The system enables the Board of Directors to carry out its
Governance oversight responsibilities & distribute assignment of Monitoring
authority and responsibility along the organizational structure.
It ensures that the human capital that is being employed by the Control
organization is such that, competent employees are attracted Activities
from the market, nurtured in professional manner & retained
up to a desired time line.
KPI (Key Performance Indicator) system employed by the
organization & rewarding culture towards performing Risk Control
employees ensures that, accountability is established at every Assessment Environment
level. The entire system acts in a composite manner & creates
an all-encompassing impact on the overall system of internal
control.
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Various principles of Internal Control & Compliance adopted by NRBC
 Demonstration of a strong commitment to integrity and ethical values.
 Ensuring independence of the Board of Directors of NRBC from Management & exercising oversight of the
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development and performance of internal control.
 Encouraging a culture that enables the Management to distribute appropriate authorities & responsibilities all
d.
along the hierarchy while keeping focus on specific objectives aligned with the Board oversight.
 Accountability of employees for their internal control responsibilities in the pursuit of objectives.
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Mitigation of Risks
Control activities of NRBCB have been established with a view to mitigating risks. Control activities are performed at
all levels of NRBCB, at various stages within business processes, and over the technology environment. They may be
preventive or detective in nature and may encompass a range of manual and automated activities such as authorizations
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and approvals, verifications, reconciliations and business performance reviews.
Risk Components
• NRBCB selects and develops control activities that contribute to the mitigation of risks to the achievement of
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objectives to acceptable levels.

• NRBCB deploys control activities through specific policies that establish what is expected and in procedures
that put policies into action.
• Selects and develops general control activities over technology to support the achievement of objectives.
Monitoring Activities
Monitoring of key risks is a part of the Bank as well as periodic evaluations by the business lines internal audit. Bank’s
internal control system is monitored and deficiencies are corrected in an ongoing basis.
NRBCB has adopted following two principles in respect of monitoring activities:
NRBCB selects, develops, and performs ongoing and separate evaluations to ascertain whether the components of
internal control are present and functioning.
NRBCB evaluates and communicates internal control deficiencies in a timely manner to those parties responsible for
taking corrective action, including senior management and the Board of directors, as appropriate & after some internal
corrective measures taking.
Audit Activities/Functions
In the case of financial audits, a set of Financial Statements are said to be true and fair when they are free of material
misstatements a concept influenced by both quantitative (numerical) and qualitative factors. Traditionally, audits were

mainly associated with gaining information about financial systems and the financial record of a company or business.
However, recent auditing has begun to include non-financial subject areas, such as safety, security, information systems
performance, and environmental concerns.
Information and Communication Perspective

Following three (3) principles is adopted by NRBCB with respect to information and communication in order to carry
out its internal control responsibilities & to support the achievement of its objectives:
 NRBCB obtains or generates and uses relevant, quality information to support the function of internal con-
trol in a timely manner.
 NRBCB internally communicates information, including objectives and responsibilities for internal control,
necessary to support the functioning of internal control.
 NRBCB communicates with external parties regarding matters affecting the functioning of internal control
.Creates exception report of different parameter where risks involve.
Management Review and Responsibilities
NRBC Bank has developed Organizational Structure with clear functional separation and segregation of functioning
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authorities that ensures Core Risk Management practice and compliance across the Bank. The Bank is governed by
the rules, regulations, Guidelines, directions and policies as applicable for the Banking business and operations. NRBC
Bank Limited has formed a number of designated committees entrusted with specific objectives under the leadership
of Managing Director & CEO of the Bank. As per Bangladesh Bank Guidelines, Senior Management Team (SMT) is the
main body of management and decision making in the Bank. Besides, there are Asset Liability Committee (ALCO),
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Basel III Implementation Unit, Risk Management Committee, ICAAP Preparation Committee, Management Reporting
System (MRS) Committee, Share Investment Committee, Credit Assessment Committee, Purchase Committee, etc. are
d.
supporting the Bank’s management in discharging its duties efficiently and effectively.
Ethics and Compliance

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NRBC Bank is committed to establishing the highest level of business compliance and ethical standard. It’s senior
management is responsible for establishing a compliance policy that contains the basic principles to be approved by the
Board and explains the main processes by which compliance risks are to be identified and managed through all levels of
the organization. The Board and management are accountable for the Bank’s compliance, the compliance function has
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an important role in supporting corporate values, policies and processes that help ensure that the Bank acts responsibly
and fulfils all applicable obligations.
NRBC Bank is always committed to establishing the highest level of business compliance and ethical standard. The Bank
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has a “Code of Ethics”- a framework of ethical behavior for all the employees of the organization. The leaders/managers
are required to exemplify the highest standards of conduct and ethical behavior. The leaders/managers are expected to:
o lead according to NRBC Bank standards of ethical conduct, in both words and actions
o create and maintain an environment where employees feel comfortable asking questions or reporting con-
cerns
o be diligent in enforcing the Bank’s ethical standards and taking appropriate action if violation occurs
o contact the Human Resources Division when in need of assistance
The Employee Code of Ethics and Business Compliance also specify the grounds of punishment to refrain employees
from any unwanted behavior. The code of ethical behavior gives focus on the followings:
o protecting Privacy of Customers’ and Confidential

o company Information,
o preventing Money Laundering and/or Fraud,
o avoiding Drug/Substance/Alcohol Abuse in the Workplace
o protecting Bank’s assets
o abstaining any conflict of interest etc.
NRBC Bank 109

a. Integrity
The ‘Code of Ethics’ starts with the phrase “Uncompromising integrity”, Employees of NRBC Bank are judged not only
in terms of competencies, but also with their integrity. The reputation and continued success of NRBC Bank largely
depend on a shared commitment to the core value of integrity. Respecting this value is the responsibility of each and
every member of the organization.
b. Managing Conflict of interest
The Code of Ethics aware employees to avoid situations where their personal interests conflict, or may appear to
conflict, with those of the Bank. Employees are advised to take particular care when they are responsible for dealing
with customers, suppliers, agents on behalf of the Bank. Any failure to disclose a conflict of interest leads to a disciplinary
action. NRBC Bank’s Board oversees the implementation and operation of policies to identify potential conflicts of
interest. To avoid conflict of interest and also to make accountable the Bank has already taken the following measures:
o loan to the directors is restricted subject to full filing certain terms and conditions of regulatory guidelines
o If there is any related party transaction, the management discloses the matter in the Annual Report and it is
also approved by the general shareholders in AGM
o executive committee of the Board can approve loan to anyone up to a limited portion
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o audit committee regularly reviews the financial and other related statements and gives recommendation to
the management regarding any changes in policy and also presents to the Board for further evaluation
o Board of directors’ approval is needed for loan rescheduling
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c. Compliance with the laws and regulations
NRBC Bank maintains its reputation as a law-abiding organization and a good corporate citizen. It complies with all the
d.
prevailing laws and regulations of the country. Employees are trained and guided to conduct business in compliant
manner. The policy and procedures regarding NRBC Bank’s business process are prepared in adherence to the applicable
laws and regulations.
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d. Compliance with Bangladesh Secretarial Standards (BSS)
NRBC Bank has conducted its Board meetings in line with the provisions of the Bangladesh Secretarial Standards BSS-
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1: Secretarial Standard on Meetings of the Board of Directors, general meeting in line with the provisions of BSS-2:
Secretarial Standard on General Meetings, record the minutes of the meetings in line with the provisions of BSS-3:
Minutes and declared the dividend in line with the provisions of BSS-4: Secretarial Standard on Dividend adopted by
the Institute of Chartered Secretaries of Bangladesh (ICSB).
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e. Compliance with BB guidelines for Corporate Governance
To ensure good governance in the banking Industry, Bangladesh Bank (BB) issued following Circulars in
2013 covering three broad areas as follows:
1. BRPD Circular No.11 dated 27 October 2013: Formation and responsibilities of Board of Directors (BoD).
2. BRPD Circular Letter No. 18 dated 27 October 2013: Appointment and responsibilities of Chief Executive Of-
ficer (CEO).
3. BRPD Circular Letter No. 19 dated 27 October 2013: Contractual appointment of Advisor and Consultant.
4. BRPD Circular Letter No. 2 dated 7 February 2018: Compliance of Bank Company Act (Amendment 2018).
Related Party Transaction
The Bank in its ordinary course of business undertook financial transactions with some entities or persons that fall
within the definition of ‘Related Party’ as contained in IAS 24 (Related Party Disclosures) and relevant provisions of Bank
Company Act 1991 (amended up to 2018) and Bangladesh Bank BRPD Circular No. 14 dated 25 June 2003. The Board
approves all related party transactions and ensures that these transactions with the Company are undertaken on an
arm’s length basis. The Audit Committee reviewed all material related party transactions and kept the Board informed
of such transactions. During the year, the Company had collected deposits from its Directors and their related parties.
No preferential treatment had been extended to the Directors and their related parties for these deposits.

f. Communication of the statement of ethics and business practices to all directors and employees
NRBC Bank has a ‘Code of Conduct’ which is a framework of ethical behavior for all the employees of the organization.
Salient features of NRBC Bank’s employees’ code of conduct:
o conforming various rules, regulations and policies framed by the Bank and other Regulating Authorities.
o showing courtesy and attention to the customers, fellow colleagues and serve the Bank honestly, sincerely,
diligently and with utmost care
o maintaining strict secrecy of the affairs of the Bank and the Customers
o prohibiting any outside employment, honorary or stipendiary, or undertake part-time work in any Branch or
Booth without prior written permission of the competent authority
o avoiding engaging directly or indirectly in any commercial business, industry or other business pursuits or as
agent of others.
o Keeping away from leaving the station without first obtaining the permission of the competent authority in
writing.
o prohibiting any personal representation to any director of the Board or any outside authority, to intervene on
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his/her behalf in any matter
o staying away from permitting any member of his/her family to accept any gift or subscriptions from a constit-
uent of the Bank, any person likely to have dealings with the Bank, a subordinate employee or a candidate for
employment in the Bank c
o not participating in gambling and betting or any such activities
o not permitting any member of his/her family to make, any investment likely to embarrass or influence him/
d.
her in discharging official duties
o forbidding investment in the business of the Bank’s clients
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o discouraging any activity which may undermine the prestige or image of the Bank or making/joining any or-
ganization which is not permitted
o banning involvement in politics directly or indirectly in any election to parliament or any local authority in
Bangladesh or elsewhere
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The Board of Directors also follows a code of conduct which was adopted to provide guidance to directors to perform
their duty in an honest, responsible and businesslike manner and within the scope of their authority, as said for in
the laws of country as well as memorandum and articles of association of the Bank. The code of conduct for Board of
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directors states that:
o The members of the Board of Directors discharge their duties professionally, with due diligence and to the
best of their abilities
o members act honestly in good faith and in the best interest of the stakeholders
o members do not make improper use of information and offensive advantage of the position as director
o confidential information acquired by the members in the course of exercise of directorial duties remain the
property of the company
o members make every effort to attend all Board and committee meeting during their tenure to maximize effec-
tiveness of the Board/ committee meetings, contribution of individual directors are monitored and appraised
on an annual basis
o all others code of conduct set by the Bangladesh Bank, Bangladesh Securities and Exchange Commission and
other regulatory bodies are followed strictly
g. The Board’s commitment to establish high level of ethics and compliance within the organization
The Board of Director has always been committed to establishing a high level of ethics and compliance among all
employees of the organization. They have always encouraged management to ensure that everyone maintains a high
ethical standard within the Bank. The Board guides management on principles that should be adopted and followed
NRBC Bank 111

by everyone in the Bank. The Board of directors of the Bank established high level of ethics and compliance within the
organization and they are committed to and maintained it in Board level and management level.
Accountability
The Board provides shareholders a balanced and understandable assessment of the Bank’s performance and position
through quarterly, half yearly and annual statements. The Management provides all directors periodically with
accounts and detailed reports on the Bank’s financial performance and related matters prior to each Board meeting.
The directors may at any time seek further information from and discuss with the Management on the Bank’s
operations and performance. Compliance Department with direct reporting line to the Risk Management Committee
is set up to ensure compliance with legislative and regulatory requirements.
a. Accountability of NRBC Bank’s Board of Directors of preparing Financial Statements
NRBC Bank Board of Directors ensures that no information that is false, misleading and incomplete or would lead to
mistrust by the public, customers or other stakeholders are not published. The Board also ensures that any monetary
transaction done with the customers and other stakeholders are recorded and done under the Bank’s established rules
and in a transparent manner. NRBC Bank’s Board of Directors ensures that qualified personnel having professional
and academic knowledge in the area of cost and financial accounting prepares Financial Statements in accordance
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with Generally Accepted Accounting Principles (GAAP), Bangladesh Accounting Standards (BAS), Bangladesh Financial
Reporting Standards (BFRS), Bangladesh Bank’s Circulars, Schedule of Bank Companies Act of 1991, the Companies
Act-1994, the Securities and Exchange Rules-1987 and other applicable laws and regulations. In preparing Financial
Statements, the Board of Directors ensures suitable accounting policies, accounting judgments and estimations. It
also ensures the highest standards in preparation, reporting and disclosure of accounting and financial information to
the regulators and to the Stakeholders of the Bank.
b. Accountability in Disclosure of Material Facts

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d.
All material facts are disclosed to the Stakeholders for taking their timely economic decisions. Material but non-public
information is not divulged that may adversely affect the business of the Bank or create regulatory breach or legal
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complication. Material public information is disclosed through the Audited Annual Report, Un-audited Half-yearly
and Quarterly Financial Statements, and monthly Business Position etc. All related party transactions are reviewed
regularly by the internal auditors and a report on the reviews conducted is submitted to the Audit Committee for their
monitoring.
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c. Accountability of Maintaining Confidentiality of Information
Information of the customers, prospective customers, suppliers, shareholders and employees is kept confidential.
Information is used solely for corporate purposes and never to be discussed with or divulged to unauthorized people
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including family, friends and acquaintances. Examples of confidential information broadly include:
o customer’s account or business details

o Shareholder’ holding or transaction details
o Employees’ job records, pay perquisites, benefits tax issues etc
o Suppliers’ price, sales strategy etc
o Internal documents like strategy papers, Product Program Guidelines (PPG) etc.
d. Compliance of relevant Rules and Regulations
NRBC Bank runs its business activities in full compliance with relevant rules, regulations and guidelines. While
conducting its operation, NRBC Bank follows strictly Bank Companies Act, 1991, The Companies Act, 1994, Central
Bank’s Guidelines, Securities and Exchange Rules-1987, Dhaka and Chittagong Stock Exchange Listing Rules,
Bangladesh Accounting Standards (BAS), Bangladesh Financial Reporting Systems (BFRS), IAS/IFRS guidelines, SAFA &
CAPA guidelines, BIS and UCPDC, URR, URC and other ICC rules.
e. Prevention of money laundering and terrorist financing
Money Laundering, fraud & corruption have become very important issues in recent years. To battle and mitigate
the problems of money laundering and terrorism, Management of NRBC Bank has formed Anti Money Laundering

Department which seeks to prevent any misuse of the financial system for the purpose of offences that might
jeopardize the asset and reputation of Bank. The Bank has also nominated Chief Anti Money Laundering Compliance
Officer (CAMLCO) who attends the CAMLCO Conference every year organized by Bangladesh Bank and Branch Anti
Money Laundering Compliance Officers (BAMLCO) at Branches, who independently would make the Bank compliant
on AML matters. AML Department arranges and conducts AML workshops in order to train all the employees of the
Bank to meet up our regulatory requirement and most of the employees obtained AML and CFT (Combating Financing
Terrorism) related training.
f. Incorporate Anti-Fraud Programs
The Internal Control & Compliance Division (ICCD) of NRBC Bank always engage in examination of whether any fraud
forgery or irregularities is going on in the Bank. The ICCD also conducts special audit or investigations as instructed by
the Board or Audit Committee of the Bank. The ICCD submits reports upon the observations they detect throughout
their audit to the Audit Committee at a regular interval.
g. constructive Whistle blowing policy
NRBC Bank has an effective Whistle blowing Policy whereby employees entitled to raise concerns in confidence about
the malpractices in the bank. Whistle blowing about bad practices can help ensure that problems are identified before
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it is too late. This helps prevent disasters ranging from customer mistreatment to huge financial loss. NRBC Bank is
committed to the highest standards of good governance, openness, transparency, honesty, integrity and accountability.
This whistle blowing policy document explains procedure for reporting any misconduct to the designated officials so
that appropriate remedial action can be taken. This policy is designed to enable Directors, all employees, including
temporary staff, to raise any serious concerns internally with high level of confidentiality and immunity.
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h. Complaint Resolution Process
d.
NRBC Bank Limited is committed to recognize the right of its customer and stakeholders to complain when feeling
dissatisfied with the service of the Bank. NRBCB undertakes to resolve any complaints about irregularities and to
prevent similar complaints from occurring in the future. Any issue brought to the attention is treated in a confidential
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manner, and discussed only with the people who need to be involved. In this connection, NRBC Bank strictly follows
the ‘Guidelines for Customer Services and Complaint Management’ (June 2014) issued by Financial Integrity &
Customer Services Department (Customer Services Division), Bangladesh Bank.
Human Capital
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Employees are the key driving force of NRBC Bank’s continuous success. A group of motivated and engaged employees
with diverse talents are the key asset of NRBC Bank. NRBC Bank has it’s reputation in the market as an employer
of choice. The Bank has positioned itself with a performance-driven rewarding work culture; where employees are
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treated with respect and receive widened opportunities to realize their diverse potentials fully as well as benefit the
organization by demonstrating value creating behaviors. To ensure long term sustainability, NRBC Bank has a special
focus on skill and merit based recruitment and selection process, highly competitive remuneration package, adequate
training and development programs, career growth with succession planning, high-performance culture and pleasant
working atmosphere where employees are able to escalate their grievance and receive counseling.
a. Recruitment and selection
The recruitment and selection in NRBC Bank follows the ‘best fit’ approach. As per Bank’s requirement Human
Resources Division ensures that the potential candidates are properly assessed, selected and placed on-time as
per required competencies and experience. NRBC Bank has a recruitment policy that clearly states the criteria and
procedures to recruit fresh and lateral entrants. The Bank has a Management Trainee Program which is aimed to
recruit outstanding fresh graduates and develop them as the future leaders of NRBC Bank Ltd.
b. Learning & Development
NRBC Bank continuously thrives to transform Human Resources to Human Capital through appropriate learning and
development initiatives in every aspects of work area. HR Division regularly undertakes effectively designed training
programs targeting the right group of employees through proper training need assessment. The Bank has a separate
HR Training & Development Centre.
NRBC Bank 113

c. Compensation & Benefits
NRBC Bank has a flexible compensation and benefits system that helps ensure pay equity, is linked with performance
that is understood by employees, and keeps in touch with employee desires and what’s coveted in the market, while
maintaining a balance with the business affordability. All employees are paid competitive remuneration package. The
structure and level of remuneration are reviewed time to time based on Bank’s performance and affordability.
d. Ensuring horizontal and vertical career growth
NRBC Bank always plans for employees so that they can advance their career goals. This includes advancement into
more responsible positions. The company supports career opportunities internally so that talented employees are
placed in upgraded positions and thereby enables them to deliver their greatest value to the organization. In addition
to vertical career growth, employees may also grow horizontally. Whenever possible Human Resources Division
mobilizes employees across different functions and branches; thus assisting them to progress with varied skills and
experience.
e. Succession planning for Internal Employees
Besides encouraging individual employee growth and development, NRBC Bank also gives effort to identify and retain
the human resources who can potentially be the successors of mission critical roles. NRBC Bank acknowledges that
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Succession Planning & Management is vital to the continued success of the Bank. NRBC Bank continuously assesses
organizational, divisional and team capability gaps to identify, develop and retain the successors in a timely manner
to meet the demands of the future.
f. Performance Management Program c

NRBC Bank has a comprehensive performance management program that evaluates employees’ yearly performance
d.
against business targets at the year-end. This performance appraisal system is considered as crucial for the Bank as
this is a very important tool to identify and distinguish the performers and non-performers. NRBC Bank believes that a
well-executed performance appraisal system can help reward the deserving employees, as well as help ensure further
development program for the rest.
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g. Reward & recognition
NRBC Bank has a well-designed Reward & Recognition program that gives special attention to employees’ performance.
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It meets the intrinsic psychological need for appreciation of employees’ efforts and supports business strategy by
reinforcing certain behaviors that contribute to Bank’s success.
h. Grievances and counseling

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Since employee’s behavior affects work discipline, HR Division always encourages employees to report if they have
any work related grievance. In NRBC Bank there is formal procedure to address the employee grievance. Time to time
HR Division also counsels employees as part of its job as people’s advocate.
Beside that an employee on whom any disciplinary action is imposed may prefer an appeal to the competent authority
of the Bank and the appeal need to be made for review of the decision within the specific time period. Thus, we have
a participative and collaborative grievance handling procedure which is very much democratic in nature.
i. Ensuring a Decent workplace
NRBC Bank believes that the business can grow favorably if the organization enables employees through creating and
maintaining a decent workplace. In NRBC Bank, there is a decent work environment where employees can work with
dignity, have the freedom to express opinions, can participate in the decision making process that affect their lives,
and receive equal treatment and opportunity. NRBC Bank ensures security in the workplace and social protection for
employees’ families, better prospects for their personal development and social integration.
Communication to Shareholders & Stakeholders
a. Company’s policy/strategy to facilitate effective communication with shareholders and other stakeholders
NRBC Bank ensures that all shareholders are notified at least 2 weeks before the AGM so that they can attend on the
day. Quarterly and Half yearly Financial Statements or relevant information are updated on the website and notified

to all stakeholders duly. The Bank tries to maintain liaison with the shareholders as much as possible and ensures that
all stakeholders are informed about the bank’s activities on a routine basis. NRBC Bank also engages with all types of
stakeholders as much as possible to ensure that information is effectively communicated. The Directors appreciate
the importance of general shareholders of the Bank and use the Bank’s AGM as further opportunities to communicate
with them. NRBC Bank provides copies of the annual report in order that these are made available to them well in
advance for detail and constructive discussion. It is the company’s policy to give the shareholders the opportunity
to ask questions about its activities and prospects at the AGM. The Board also structures these meetings so that
shareholders can vote separately on each matter, by proposing separate resolutions for each item to be considered.
b. Company’s policy on ensuring participation of shareholders in the Annual General Meeting
NRBC Bank tries utmost to ensure that all shareholders can participate in the AGM. Annual Reports are sent at least
two (02) weeks before the AGM to ensure all shareholders are notified about the event date, place and time. Also,
NRBC Bank ensures that AGM is held at a convenient place where all shareholders may attend. Notices to shareholders
are made by publication in the daily newspapers and through the digital media as well. NRBC Bank ensures effective
communication with the shareholders and encourages shareholder participation at the AGM. NRBC Bank connects
with the investors through AGM and Company’s website. Shareholders are offered the chance to enquire with the
Board regarding the operation of the Bank. They are also presented the opportunity and scope to make queries with
the Company’s Auditors concerning topics linked to the audit of the Company’s Financial Statements at the AGM.
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Environmental and Social Obligation
Natural and fresh environment, efficient use of reserves and appreciation for people’s well-being and safety are what
NRBC Bank always believe in. In harmony with this, NRBC Bank is constantly working towards decreasing consumption
of energy. Branches are reducing the use of hazardous substances from its practices and reducing waste generation.
c
Bangladesh Bank has taken steps to inspire green banking in Bangladesh through issuance of guidelines on green
banking and Environmental Risk Management (ERM). NRBC Bank has always been committed to the environment
d.
friendly banking and also been active in social activities throughout the year 2018, and will remain so in the future as
well. It is also in the process to make all branches and divisions more environmental friendly. NRBC Bank has always
been an active member of society and has tried to enhance people’s lives and its employees as well.
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NRBC Bank 115

CORPORATE GOVERNANCE COMPLIANCE CHECKLIST IN LINE WITH BANGLADESH
SECURITIES AND EXCHANGE COMMISSION (BSEC) REGULATION
Status of compliance with the conditions imposed by the Commission’s Notification No.BSEC/CMRRCD/2006-158/207/
Admin/80, dated 03 June, 2018 issued under section 2CC of the Securities and Exchange Ordinance, 1969
(Report under Condition No. 9.00):
Compliance Status Put (√) in

Condition the appropriate column
No. Title Remarks (if any)
Not
Complied
Complied
1 Size of the Board of Directors:
The Board of NRBC
The total number of members of a company’s
Bank Limited is
Board of Directors (hereinafter referred to as
1.1 comprised of 13
“Board”) shall not to be less than 5 (five) and
Directors including
more than 20 (twenty).
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Managing Director.
1.2 Independent Directors:
At least one fifth (1/5) of the total number
Under Process
of directors in the company’s Board shall be
[Applied to
1.2(a) independent directors; any fraction shall be
Bangladesh Bank
c
considered to the next integer or whole number
for calculating number of independent director(s);
for appointment]
d.
1.2 (b) For the purpose of this clause “independent director” means a director-
who either does not hold any share in the company Independent
1.2(b)(i) or holds less than one percent (1%) shares of the - director yet to
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total paid-up shares of the company; appointed

who is not a sponsor of the company or is not
connected with the company’s any sponsor or
director or nominated director or shareholder
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of the company or any of its associates, sister

Independent
concerns, subsidiaries and parents or holding
1.2(b)(ii) - director yet to
entities who holds one percent (1%) or more
appointed
shares of the total paid-up shares of the company
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on the basis of family relationship and his or

her family members also shall not hold above
mentioned shares in the company
who has not been an executive of the company
1.2(b)(iii) - N/A
in immediately preceding 2 (two) financial years
who does not have any other relationship, whether
1.2(b)(iv) pecuniary or otherwise, with the company or its - N/A
subsidiary or associated companies;
who is not a member or TREC (Trading Right
1.2(b)(v) Entitlement Certificate) holder, director or officer - N/A
of any stock exchange;
who is not a shareholder, director excepting
independent director or officer of any member or
1.2(b)(vi) - N/A
TREC holder of stock exchange or an intermediary
of the capital market;

Not
Complied
Complied
who is not a partner or an executive or was not
a partner or an executive during the preceding
3 (three) years of the concerned company’s
1.2(b)(vii) statutory audit firm or audit firm engaged in - N/A
internal audit services or audit firm conducting
special audit or professional certifying compliance
of this Code;
who is not independent director in more than 5
1.2(b)(viii) - N/A
(five) listed companies;
who has not been convicted by a court of
competent jurisdiction as a defaulter in payment
1.2(b)(ix) - N/A
of any loan or any advance to a bank or a Non-
Bank Financial Institution (NBFI); and
who has not been convicted for a criminal offence
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1.2(b)(x) - N/A
involving moral turpitude;
The independent director(s) shall be appointed by
1.2(b)(a) the Board and approved by the shareholders in - N/A
the Annual General Meeting (AGM)
c
The post of independent director(s) cannot
1.2(b)(b) remain vacant for more than 90 (ninety) days; - N/A
and
d.
The tenure of office of an independent director
1.2(b)(c) shall be for a period of 3 (three) years, which may - N/A
be extended for 1 (one) tenure only
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1.3 Qualification of Independent Director (ID)

Independent director shall be a knowledgeable
individual with integrity who is able to ensure
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1.3(a) compliance with financial laws, regulatory - N/A

requirements and corporate laws and can make
meaningful contribution to the business
Business Leader who is or was a promoter or
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director of an unlisted company having minimum

paid-up capital of Tk. 100.00 million or any
1.3(b)(i) - N/A
listed company or a member of any national or
international chamber of commerce or business
association; or
Corporate Leader who is or was a top level
executive not lower than Chief Executive Officer
or Managing Director or Deputy Managing
Director or Chief Financial Officer or Head of
Finance or Accounts or Company Secretary or
1.3(b)(ii) - N/A
Head of Internal Audit and Compliance or Head
of Legal Service or a candidate with equivalent
position of an unlisted company having minimum
paid-up capital of Tk. 100.00 million or of a listed
company; or
Former official of government or statutory or
autonomous or regulatory body in the position
not below 5th Grade of the national pay scale,
1.3(b)(iii) - N/A
who has at least educational background of
bachelor degree in economics or commerce or
business or Law; or
NRBC Bank 117

Not
Complied
Complied
University Teacher who has educational
1.3(b)(iv) background in Economics or Commerce or - N/A
Business Studies or Law; or
Professional who is or was an advocate practicing
at least in the High Court Division of Bangladesh
Supreme Court or a Chartered Accountant or
Cost and Management Accountant or Chartered
1.3(b)( v) - N/A
Financial Analyst or Chartered Certified
Accountant or Certified Public Accountant or
Chartered Management Accountant or Chartered
Secretary or equivalent qualification
The independent director shall have at least 10
1.3(c) (ten) years of experiences in any field mentioned - N/A
in clause (b);
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In special cases, the above qualifications or
1.3(d) experiences may be relaxed subject to prior - N/A
approval of the Commission.
1.4 Duality of Chairperson of the Board of Directors and Managing Director or Chief Executive Officer):
c
The positions of the Chairperson of the Board
and the Managing Director (MD) and/or Chief
1.4(a) -
d.
Executive Officer (CEO) of the company shall be
filled by different individuals
The Managing Director (MD) and/or Chief
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Executive Officer (CEO) of a listed company shall

1.4(b) -
not hold the same position in another listed
company;
The Chairperson of the Board shall be elected
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1.4(c) from among the non-executive directors of the -

company
The Board shall clearly define respective roles
1.4(d) and responsibilities of the Chairperson and the -
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Managing Director and/or Chief Executive Officer;

In the absence of the Chairperson of the Board, the
remaining members may elect one of themselves
from non-executive directors as Chairperson for No such event
1.4(e) - -
that particular Board’s meeting; the reason of arose
absence of the regular Chairperson shall be duly
recorded in the minutes.
The Directors’ Report to Shareholders : The directors of the companies shall include the following
1.5 additional statements in the Directors’ Report prepared under section 184 of the Companies Act,1994
(Act No. XVII of 1994):-
1.5(i)
Industry outlook and possible future
developments in the industry.
1.5 (ii) Segment-wise or product-wise performance
Risks and concerns including internal and external

1.5 (iii) risk factors, threat to sustainability and negative
impact on environment, if any;
1.5 (iv)
A discussion on Cost of Goods sold, Gross Profit
Margin and Net Profit Margin, where applicable;

Not
Complied
Complied
A discussion on continuity of any extraordinary No such event
1.5 (v) -
activities and their implications (gain or loss); arose
A detailed discussion on related party transactions
1.5 (vi)
along with a statement showing amount, nature
of related party, nature of transactions and basis
of transactions of all related party transactions;
N/A (As bank
A statement of utilization of proceeds raised yet to go for IPO
1.5 (vii) through public issues, rights issues and/or any - or enlisted any
other instruments; Stock exchange in
Bangladesh)
N/A (As bank
An explanation if the financial results deteriorate
yet to go for IPO
after the company goes for Initial Public Offering
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1.5 (viii) - or enlisted any
(IPO), Repeat Public Offering (RPO), Rights Offer,
Stock exchange in
Direct Listing, etc.
Bangladesh)
If significant variance occurs between Quarterly
1.5 (ix)
Financial performance and Annual Financial
Statements the management shall explain about
c
the variance on their Annual Report.
d.
1.5 (x)
A statement of remuneration paid to the directors
including independent directors
A statement that the Financial Statements
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prepared by the management of the issuer

1.5 (xi) company present fairly its state of affairs, the
result of its operations, cash flows and changes
in equity;
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1.5 (xii)
A statement that proper books of account of the
issuer company have been maintained
A statement that appropriate accounting policies
have been consistently applied in preparation of
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1.5 (xiii) the Financial Statements and that the accounting

estimates are based on reasonable and prudent
judgment;
A statement that International Accounting
Standards (IAS) or International Financial
1.5 (xiv)
Reporting Standards (IFRS), as applicable in
Bangladesh, have been followed in preparation of
the Financial Statements and any departure there
from has been adequately disclosed;
A statement that the system of internal control
1.5 (xv) is sound in design and has been effectively
implemented and monitored;
A statement that minority shareholders have
been protected from abusive actions by, or in the
1.5 (xvi) interest of, controlling shareholders acting either
directly or indirectly and have effective means of
redress;.
NRBC Bank 119

Not
Complied
Complied
A statement that there is no significant doubt
upon the issuer company’s ability to continue
1.5 (xvii) as a going concern, if the issuer company is not
considered to be a going concern, the fact along
with reasons there of shall be disclosed
An explanation that significant deviations from the
1.5 (xviii)
last year’s operating results of the issuer company
shall be highlighted and the reasons thereof shall
be explained;
A statement where key operating and financial
1.5 (xix) data of at least preceding 5 (five) years shall be
summarized;
11% Stock
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Dividend
An explanation on the reasons if the issuer
recommended
1.5 (xx) company has not declared dividend (cash or - -
by Board & will
stock) for the year
be placed before
AGM for approval
N/A: Board
1.5 (xxi)
c
Board’s statement to the effect that no bonus
share or stock dividend has been or shall be -
Recommended
11% Stock
d.
declared as interim dividend;
Dividend
1.5 (xxii)
The total number of Board meetings held during
the year and attendance by each director;
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1.5 (xxiii)
The Pattern of shareholding shall be reported to disclose the aggregate number of share (along with
name wise details where stated below) held by:-
All Share hold by
Parent/Subsidiary/Associated Companies and
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1.5 (xxiii)(a) individual Sponsor

other related parties (name wise details);
Shareholders
Directors, Chief Executive Officer, Company
1.5 (xxiii)(b)
Secretary, Chief Financial Officer, Head of Internal
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Audit and their spouses and minor children

(name wise details);
1.5 (xxiii)(c) Executives; and
Shareholders holding ten percent (10%) or more No Director hold

1.5 (xxiii)(d) voting interest in the company (name wise 10% or more
details). shareholding
1.5(xxiv)
In case the appointment/re-appointment of a director the company shall disclose the following
information to the shareholders:-
1.5(xxiv)(a) a brief resume of the director;
1.5(xxiv)(b)
nature of his/her expertise in specific functional
area;
names of companies in which the person also
1.5(xxiv)(c) holds the directorship and the membership of
committees of the Board;
A Management’s Discussion and Analysis signed by CEO or MD presenting detailed analysis of the
1.5(xxv) company’s position and operations along with a brief discussion of changes in the Financial Statements,
among others, focusing on:

Not
Complied
Complied
1.5(xxv)(a)
accounting policies and estimation for
preparation of Financial Statements;
changes in accounting policies and estimation, N/A: No changes
if any, clearly describing the effect on financial in accounting
1.5(xxv)(b) performance or results and financial position - policies and
as well as cash flows in absolute figure for such estimation during
changes; the Year
comparative analysis (including effects of
inflation) of financial performance or results and
1.5(xxv)(c) financial position as well as cash flows for current
financial year with immediate preceding five
years explaining reasons thereof;
compare such financial performance or results
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1.5(xxv)(d) and financial position as well as cash flows with
the peer industry scenario;
1.5(xxv)(e)
briefly explain the financial and economic
scenario of the country and the globe;
risks and concerns issues related to the Financial
c
1.5(xxv)(f) Statements, explaining such risk and concerns
mitigation plan of the company; and
d.
future plan or projection or forecast for
company’s operation, performance and financial
1.5(xxv)(g) position, with justification thereof, i.e., actual
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position shall be explained to the shareholders in

the next AGM;
Declaration or certification by the CEO and the
1.5(xxvi) CFO to the Board as required under condition No.
3(3) shall be disclosed as per Annexure-A; and
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The report as well as certificate regarding

1.5(xxvii)
compliance of conditions of this Code as required
under condition No. 9 shall be disclosed as per
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Annexure-B and Annexure-C.

1.6 Meetings of the Board of Directors
The company shall conduct its Board meetings
and record the minutes of the meetings as well as
keep required books and records in line with the
provisions of the relevant Bangladesh Secretarial
Standards (BSS) as adopted by the Institute of
Chartered Secretaries of Bangladesh (ICSB) in so
far as those standards are not inconsistent with
any condition of this Code.
1.7
Code of Conduct for the Chairperson, other Board
members and Chief Executive Officer
The Board shall lay down a code of conduct,
based on the recommendation of the Nomination
and Remuneration Committee (NRC) at condition
1.7(a) N/A
No. 6, for the Chairperson of the Board, other
Board members and Chief Executive Officer of
the company;
NRBC Bank 121

Not
Complied
Complied
The code of conduct as determined by the NRC
shall be posted on the website of the company
including, among others, prudent conduct and
behavior; confidentiality; conflict of interest;
1.7(b) N/A
compliance with laws, rules and regulations;
prohibition of insider trading; relationship
with environment, employees, customers and
suppliers; and independency.
2 Governance of Board of Directors of Subsidiary Company
Provisions relating to the composition of the
Board of the holding company shall be made
2(a) N/A
applicable to the composition of the Board of the
subsidiary company;
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At least 1 (one) independent director on the
2(b) Board of the holding company shall be a director N/A
on the Board of the subsidiary company;
The minutes of the Board meeting of the
2(c)
subsidiary company shall be placed for review
at the following Board meeting of the holding
company;
c
d.
The minutes of the respective Board meeting of
2(d)
the holding company shall state that they have
reviewed the affairs of the subsidiary company
also;
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The Audit Committee of the holding company

2(e)
shall also review the Financial Statements, in
particular the investments made by the subsidiary
company.
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3
Managing Director (MD) or Chief Executive Officer (CEO), Chief Financial Officer (CFO), Head of Internal
Audit and Compliance (HIAC) and Company Secretary (CS):
The Board shall appoint a Managing Director
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3.1(a)
(MD) or Chief Executive Officer (CEO), a Company
Secretary (CS), a Chief Financial Officer (CFO) and
a Head of Internal Audit and Compliance (HIAC);
The positions of the Managing Director (MD) or
Chief Executive Officer (CEO), Company Secretary
3.1(b) (CS), Chief Financial Officer (CFO) and Head of
Internal Audit and Compliance (HIAC) shall be
filled by different individuals;
N/A: Bank yet
to list any stock
The MD or CEO, CS, CFO and HIAC of a listed exchange. But
3.1(c) company shall not hold any executive position in none of the
any other company at the same time; executives hold
any position with
another company.
The Board shall clearly define respective roles,
3.1(d) responsibilities and duties of the CFO, the HIAC
and the CS;

Not
Complied
Complied
The MD or CEO, CS, CFO and HIAC shall not be
3.1(e)
removed from their position without approval of
the Board as well as immediate dissemination to
the Commission and stock exchange(s).
3(2) Requirement to attend Board of Directors’ Meetings
The MD or CEO, CS, CFO and HIAC of the company
shall attend the meetings of the Board
3(3) Duties of Managing Director (MD) or Chief Executive Officer (CEO) and Chief Financial Officer (CFO)
The MD or CEO and CFO shall certify to the Board
3(3)(a)
that they have reviewed Financial Statements for
the year and that to the best of their knowledge
and belief:
these statements do not contain any materially
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3(3)(a)(i) untrue statement or omit any material fact or
contain statements that might be misleading; and
these statements together present a true and
3(3)(a)(ii)
fair view of the company’s affairs and are in
compliance with existing accounting standards
and applicable laws;
c
The MD or CEO and CFO shall also certify that
d.
there are, to the best of knowledge and belief,
3(3)(b)
no transactions entered into by the company
during the year which are fraudulent, illegal
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or in violation of the code of conduct for the

company’s Board or its members;
3(3)(c)
The certification of the MD or CEO and CFO shall
be disclosed in the Annual Report.
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4
Board of Directors’ Committee-For ensuring good governance in the company, the Board shall have at
least following sub-committees:
4(i) Audit Committee; and

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4(ii) Nomination and Remuneration Committee. N/A

5 Audit Committee
5(1) Responsibility to the Board of Directors
5 (1)(a)
The company shall have an Audit Committee as
a Sub-committee of the Board of Directors.
The Audit Committee shall assist the Board
of Directors in ensuring that the Financial
5(1)(b) Statements reflect true and fair view of the state
of affairs of the company and in ensuring a good
monitoring system within the business.
The Audit Committee shall be responsible to
5(1)(c) the Board of Directors. The duties of the Audit
Committee shall be clearly set forth in writing.
5(2) Constitution of the Audit Committee
NRBC Bank 123

Not
Complied
Complied
Constituted the
The Audit Committee shall be composed of at Committee as per
5(2)(a) Prime Regular
least 3 (three) members. BB’s Circular:11
Date 27.10.2013
The Board of Directors shall appoint members of
the Audit Committee who shall be directors of
5(2)(b) N/A
the company and shall include at least 1 (one)
independent director.
All members of the audit committee
5(2)(c)
should be “Financially literate” and at least 1
(one) member shall have accounting or related
financial management experience.
When the term of service of the Committee
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members expires or there is any circumstances
causing any Committee member to unable to hold
office until expiration of the term of service, thus
making the number of the Committee members
to be lower than the prescribed number of 3
5(2)(d)
c
(three) persons, the Board of Directors shall
appoint the new Committee member(s) to fill up
d.
the vacancy(ies) immediately or not later than
1 (one) month from the date of vacancy(ies)
in the Committee to ensure continuity of the
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performance of work of the Audit Committee.

The company secretary shall act as the secretary
5(2)(e)
of the Committee.
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The quorum of the Audit Committee meeting

5(2)(f) shall not constitute without at least 1 (one) N/A
independent director.
5(3) Chairman of the Audit Committee
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The Board shall select 1 (one) member of the

Audit Committee to be Chairperson of the
5(2)(a) N/A
Audit Committee, who shall be an independent
director
In the absence of the Chairperson of the Audit
Committee, the remaining members may elect
one of themselves as Chairperson for that
particular meeting, in that case there shall be no No such event
5(3)(b)
problem of constituting a quorum as required arose
under condition No. 5(4)(b) and the reason of
absence of the regular Chairperson shall be duly
recorded in the minutes.
Chairman of the audit committee shall
5(3)(c) remain Present in the Annual General Meeting
(AGM).
5(4) Meeting of the Audit Committee
The Audit Committee shall conduct at least its
5(4)(a)
four meetings in a financial year:

Not
Complied
Complied
The quorum of the meeting of the Audit
Committee shall be constituted in presence of
either two members or two-third of the members
5(4)(b)
of the Audit Committee, whichever is higher,
where presence of an independent director is a
must
5(5) Role of Audit Committee
5(5) (a) Oversee the financial reporting process
5(5)(b)
monitor choice of accounting policies and
principles.
monitor Internal Audit and Compliance process
to ensure that it is adequately resourced,
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5(5)(c) including approval of the Internal Audit and
Compliance Plan and review of the Internal Audit
and Compliance Report;
5(5)(d)
Oversee hiring and performance of external
auditors.
c
hold meeting with the external or statutory
d.
auditors for review of the annual Financial
5(5)(e)
Statements before submission to the Board for
approval or adoption;
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review along with the management, the annual

5(5)(f) Financial Statements before submission to the
Board for approval;
review along with the management, the quarterly
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5(5)(g) and half yearly financial statements before

submission to the Board for approval.
5(5) (h) review the adequacy of internal audit function.

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review the Management’s Discussion and

5(5) (i)
Analysis before disclosing in the Annual Report;
review statement of all related party transactions
5(5) (j)
submitted by the management;
review Management Letters or Letter of Internal
5(5) (k)
Control weakness issued by statutory auditors
oversee the determination of audit fees based on
scope and magnitude, level of expertise deployed
5(5) (l)
and time required for effective audit and evaluate
the performance of external auditors; and
oversee whether the proceeds raised through
Initial Public Offering (IPO) or Repeat Public
Offering (RPO) or Rights Share Offer have been Yet to raise Capital
5(5)(m)
utilized as per the purposes stated in relevant through IPO
offer document or prospectus approved by the
Commission:
5(6) Reporting of the Audit Committee
NRBC Bank 125

Not
Complied
Complied
5(6) (a) Reporting to the Board of Directors
5(6) (a) (i)

The Audit Committee shall report on its activities
to the Board of Directors
The Audit Committee shall immediately report to No such event
occurred during
5(6) (a) (ii) the Board of Directors on the following findings, - -
period under
if any review
5(6) (a) (ii)
(a) report on conflicts of interests - -
suspected or presumed fraud or irregularity or
5(6) (a) (ii) material defect identified in the internal audit
(b) - - Do
and compliance process or in the Financial
Statements;
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suspected infringement of laws, regulatory
5(6) (a) (ii)
(c) compliances including securities related laws, - - Do
rules and regulations; and
any other matter which the Audit Committee
5(6) (a) (ii)
deems necessary shall be disclosed to the Board - - Do
(d)
immediately;
c
5(6)(b) Reporting to the Authorities
d.
If the Audit Committee has reported to the Board
about anything which has material impact on
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the financial condition and results of operation

and has discussed with the Board and the
management that any rectification is necessary No such event
and if the Audit Committee finds that such occurred during
- -
rectification has been unreasonably ignored, period under
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the Audit Committee shall report such finding to review

the Commission, upon reporting of such matters
to the Board for three times or completion of a
period of 6 (six) months from the date of first
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reporting to the Board, whichever is earlier.
5(7)
Reporting to the Shareholders and General
Investors
Report on activities carried out by the Audit
Committee, including any report made to the
Board under condition No. 5(6)(a)(ii) above during No such
- - reportable
the year, shall be signed by the Chairperson of incidence arose
the Audit Committee and disclosed in the annual
report of the issuer company.
The Company will be Applied to the Bangladesh Bank
for guiding to solve conflict among BB Guideline &
BSEC Guideline. However, according BB Guideline,
6 Nomination and Remuneration Committee (NRC)
Bank must have Two Committee –Executive & Audit
Committee, But BSEC Guideline proposed additional
another committee NRC
Would applied to
resolve conflict
6(1) Responsibility to the Board of Directors
between two
guidelines

Not
Complied
Complied
The company shall have a Nomination and
6(1)(a) Remuneration Committee (NRC) as a sub- Do
committee of the Board
The NRC shall assist the Board in formulation of
the nomination criteria or policy for determining
qualifications, positive attributes, experiences
6(1)(b) and independence of directors and top level Do
executive as well as a policy for formal process of
considering remuneration of directors, top level
executive;
The Terms of Reference (ToR) of the NRC shall
6(1)(c) be clearly set forth in writing covering the areas Do
stated at the condition No. 6(5)(b)
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6(2) Constitution of the NRC
The Committee shall comprise of at least three
6(2)(a) Do
members including an independent director;
All members of the Committee shall be non-
6(2)(b) Do
executive directors;
c
Members of the Committee shall be nominated
d.
6(2)(c) Do
and appointed by the Board;
The Board shall have authority to remove and
6(2)(d) Do
appoint any member of the Committee;
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In case of death, resignation, disqualification,

or removal of any member of the Committee or
6(2)(e) in any other cases of vacancies, the Board shall Do
fill the vacancy within 180 (one hundred eighty)
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days of occurring such vacancy in the Committee;

The Chairperson of the Committee may appoint
or co-opt any external expert and/or member(s)
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of staff to the Committee as advisor who shall be

6(2)(f) non-voting member, if the Chairperson feels that Do
advice or suggestion from such external expert
and/or member(s) of staff shall be required or
valuable for the Committee;
The company secretary shall act as the secretary
6(2)(g) Do
of the Committee;
The quorum of the NRC meeting shall not
6(2)(h) constitute without attendance of at least an Do
independent director;
No member of the NRC shall receive, either
directly or indirectly, any remuneration for any
6(2)(i) advisory or consultancy role or otherwise, other Do
than Director’s fees or honorarium from the
company.
6(3) Chairperson of the NRC
The Board shall select 1 (one) member of the
6(3)(a) NRC to be Chairperson of the Committee, who Do
shall be an independent director;
NRBC Bank 127

Not
Complied
Complied
In the absence of the Chairperson of the NRC, the
remaining members may elect one of themselves
6(3)(b) as Chairperson for that particular meeting, the Do
reason of absence of the regular Chairperson
shall be duly recorded in the minutes;
The Chairperson of the NRC shall attend the
6(3)(c) annual general meeting (AGM) to answer the Do
queries of the shareholders:
6(4) Meeting of the NRC
The NRC shall conduct at least one meeting in a
6(4)(a) Do
financial year;
The Chairperson of the NRC may convene
any emergency meeting upon request by any Do
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6(4)(b)
member of the NRC;
The quorum of the meeting of the NRC shall be
constituted in presence of either two members
or two third of the members of the Committee,
6(4)(c) Do
c
whichever is higher, where presence of an
independent director is must as required under
d.
condition No. 6(2)(h);
The proceedings of each meeting of the NRC
shall duly be recorded in the minutes and such
6(4)(d) Do
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minutes shall be confirmed in the next meeting

of the NRC
6(5) Role of the NRC
NRC shall be independent and responsible or
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6(5)(a) Do
accountable to the Board and to the shareholders;
NRC shall oversee, among others, the following
6(5)(b) matters and make report with recommendation Do
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to the Board:
formulating the criteria for determining
qualifications, positive attributes and
independence of a director and recommend a
6(5)(b)(i) Do
policy to the Board, relating to the remuneration
of the directors, top level executive, considering
the following:
the level and composition of remuneration is
reasonable and sufficient to attract, retain and
6(5)(b)(i)(a) Do
motivate suitable directors to run the company
successfully;
the relationship of remuneration to performance
6(5)(b)(i)(b) is clear and meets appropriate performance Do
benchmarks; and
remuneration to directors, top level executive
involves a balance between fixed and incentive
6(5)(b)(i)(c) pay reflecting short and long-term performance Do
objectives appropriate to the working of the
company and its goals;

Not
Complied
Complied
devising a policy on Board’s diversity taking into
6(5)(b)(ii) consideration age, gender, experience, ethnicity, Do
educational background and nationality;
identifying persons who are qualified to become
directors and who may be appointed in top level
6(5)(b)(iii) executive position in accordance with the criteria Do
laid down, and recommend their appointment
and removal to the Board;
formulating the criteria for evaluation of
6(5)(b)(iv) performance of independent directors and the Do
Board;
identifying the company’s needs for employees
at different levels and determine their selection,
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6(5)(b)(v) Do
transfer or replacement and promotion criteria;
and
developing, recommending and reviewing
6(5)(b)(vi) annually the company’s human resources and
c Do
training policies;
The company shall disclose the nomination and
d.
remuneration policy and the evaluation criteria
6(5)(c) Do
and activities of NRC during the year at a glance
in its annual report
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7 EXTERNAL/STATUTORY AUDITORS
The issuer company should not engage its
7(1) external/statutory auditors to perform the
following services of the company; namely:-
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7 (1)(i)
Appraisal or valuation services or fairness
opinions.
7 (1)(ii)
Financial information systems design and
Implementation.
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7 (1)(iii)
Book-keeping or other services related to
the Accounting records or Financial Statements.
7 (1)(iv) Broker-dealer services.
7 (1)(v) Actuarial services.
7 (1)(vi) internal audit services or special audit services;
7 (1)(vii) any service that the Audit Committee determines;.
audit or certification services on compliance

7 (1)(viii) of corporate governance as required under
condition No. 9(1); and
7 (1)(ix) any other service that creates conflict of interest.
NRBC Bank 129

Not
Complied
Complied
No partner or employees of the external audit
firms shall possess any share of the company
7 (1) (x)
they audit at least during the tenure of their audit
assignment of that company; his or her family
members also shall not hold any shares in the
said company:
Representative of external or statutory auditors
shall remain present in the Shareholders’ Meeting Auditors’ will be
7 (1) (xi) (Annual General Meeting or Extraordinary invited to attend
General Meeting) to answer the queries of the in the 6th AGM
shareholders.
8 Maintaining a website by the Company
Under Process
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8(1)
The company shall have an official website linked (Bank yet to listed
with the website of the stock exchange. with any stock
exchange)
The company shall keep the website functional
8(2) Do
from the date of listing. c
The company shall make available the detailed
8(3)
disclosures on its website as required under
d.
the listing regulations of the concerned stock
exchange(s).
9 REPORTING AND COMPLIANCE OF CORPORATE GOVERNANCE:
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The company shall obtain a certificate from a

practicing Professional Accountant or Secretary
(Chartered Accountant or Cost and Management
Accountant or Chartered Secretary) other than The Bank is not
its statutory auditors or audit firm on yearly basis - listed any Stock
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9(1)
regarding compliance of conditions of Corporate Exchange.
Governance Code of the Commission and shall
such certificate shall be disclosed in the Annual
Report.
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The professional who will provide the certificate

on Compliance of this Corporate Governance
9(2) Do
Code shall be appointed by the shareholders in
the annual general meeting.
The directors of the company shall state, in
9(3)
accordance with the Annexure-C attached, in
the directors’ report whether the company has
complied with these conditions or not.

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d.
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Risk Management Report

Market Disclosure on Risk Based Capital Under Basel-III
NRBC Bank 131

RISK MANAGEMENT REPORT
Risk is inherent in all business operations. Banks, Risk Management process
for being financial intermediaries, has to encounter According to the Risk Management guidelines for Banks
multidimensional risks. But, with the passage of time, issued by Bangladesh Bank through DOS circular letter
the dimension of risks & risk intensity, have undergone a No. 04, October 08, 2018 Risk Management Division
significant change, which has made risk management in is the nucleus of Risk Management Process. So, the
banks very important. Managing risk therefore constantly achievement and progress in managing banking risks is
requires innovation and reinvention. Effective risk largely depend on the strength and performance of Risk
management is one of the most crucial success factors Management Division. NRBCB has a well established
for sustenance of a Bank. approach in the process of risk management. The
process includes with a series of multiple steps, which
are depicted as below:
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STEP- 01 STEP- 02 STEP- 03 STEP- 04
Communicate Establish Identifying Analyzing
and Consult the Context Risks Risks
c
d.
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STEP- 07 STEP- 06 STEP- 05

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Monitor Treat Evaluating

the Risks the Risks Risks
Risk management strategies proactively identifies, risk appetite. These limits are continuously monitored
measures, mitigates and monitors risk which arises at by an experienced risk management team and overseen
transaction level as well as at portfolio level to ensure by Management level Risk Committee. At managerial
efficient usage of capital. Functionally, risk management level, policies and strategies formulated by Board are
process is accomplished at strategic level, managerial implemented by middle management or units devoted
level and at operational level. to risk reviews.
At strategic level, Board Risk Management Committee Operational level encompasses on-the-line risk
(BRMC) & senior management, sets up risk governance management where risks are actually created such as at
structure and risk philosophy, endorses risk strategies, front office or at credit desk of the bank and the official
reviews and approve risk policies as well as the designated for risk management activities.
threshold limits of risks to be taken in line with bank’s

more specific, the management of the Bank is responsible
for:
01 Strategic layer  Implementation of risk strategy approved by the
Board of Directors;
02 Managerial layer  Developing policies and procedures for identify-

ing, measuring and controlling risk;
 Providing appropriate resources to evaluate and
control risk;
03 Operational layer  Reviewing risk reports on a regular and timely
basis; and
 Providing all reports required by the Board and
Board Risk Management Committee (BRMC) its committees for the effective performance of
risk management oversight functions.
To implement and ensure proper risk management
practice in banks, NRBCB in its 61st Board held on 27- Risk Management Division (RMD)
12-2017 has reconstituted Board Risk Management Risk Management Division (RMD) has been established
Committee (BRMC) in line with Bank Company on 2013 as per the instruction of Bangladesh Bank,
(Amendment up to 2013) act-1991, sec- 15 Kha, and headed by a Chief Risk Officer for overall supervision
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subsequent BRPD Circular # 11 dated October 27, 2013. of risk management of banks. The RMD is constantly
The Honorable chairman and members of Board Risk contemplating and exerting efforts for developing a
Management Committee (BRMC) are as below: structure and processes to ensure sound risk management
in all areas of the Bank.
Position in the
Sl Name Risk Classification
Committee
c
1. Mr. S M Parvez Tamal Chairman NRBCB conducts its operations by ensuring compliance
with not only the Core Risk Management Guidelines but
2. Mr. Mohammed Adnan Imam Member
d.
also the risk which includes the Pillar-II. These are as
3. Mr. Mohammed Nazim Member follows:
4. Dr. Nuran Nabi Member  Credit Risk
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Roles and Responsibilities of BRMC of the Board  Foreign Exchange Risk

The Roles and Responsibilities of Board Risk Management  Asset Liability Management Risk
Committee of NRBC Bank have been framed in line with  Internal Control & Compliance Risk
the BRPD Circular # 11 dated October 27, 2013 and other  Money Laundering Risk
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best practices and standards.

 Information and Communication Technology
 Providing the Board with greater oversight of Risk
and advice on the risk management and compli-  Other Risks(covered under Pillar-II)
ance frameworks.
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Credit Risk Management

 Strengthening the governance, effectiveness
and resourcing of the risk management and Credit risk is the risk of loss that may occur from the
compliance frameworks. failure of any counterparty to make required payments
in accordance with agreed terms and conditions and/or
 Arrangement to oversee policies and proce- deterioration of creditworthiness.
dures of risk management.
Credit policies and principles
 Supervision formation of separate committee in
NRBCB’s credit functions are conducted in a compliant
management level and activities.
manner under a strict judicious and rational credit
 Monitoring the due execution of core risk man- policies and principles in conformity with Credit Risk
agement policy and principles. Management guidelines of Bangladesh Bank. Credit
 Making recommendations relating to the risk initiation and approvals are done in a segregated manner.
appetite and particular risks or risk manage- Each and every sanction is done through a very stringent
ment practices. evaluation process, which, in fine ensures quality of
assets and minimizes losses likely to arise from potential
Management Risk Committee (MRC) bad loans.
For all categories of risks, the Management Risk
Committee is responsible for formulating policies,
Credit risk measurement
monitoring, implementation and reviewing risk reports Risk measurement along with judgment and experience
for presentation to the Board/Board committees as well play a central role in informed risk taking decisions,
as implementing Board decisions across the Bank. To be and portfolio management. For the purpose of risk
NRBC Bank 133

measurement we use a numerical grading system ‘Credit a borrowing concern is also reflected in CIB report.
Risk Grading’ (CRG) associated with a borrower. This CRG Bank guarantee is also a prolific credit enhancement
is not a lending decision making tool but used as a general instrument.
indicator to compare one set of customers with another Risk transfer
set, and its weighted average value indicate movement
of portfolio risk. Comprehensive Insurance against assets covering loan
amount is a usual risk mitigation measure in the event of
Credit Approval Process unforeseen event that may occur in future.
All credit applications are submitted to the CRM Division Exposure management
for approval. The CRM division approves the credit
proposal within the limit set by Board of Directors. Single borrower exposure limit and sectoral exposure
Other application those exceeds the limit, CRM division limit are both used as risk management tools and in
coordinates and prepares credit recommendations to the credit policy both issues are addressed complying
the Management Credit Committee, The Board Executive regulatory stipulations.
Committee and to the Board of Directors. Credit Credit monitoring
processing must be conducted on the basis of extensive The Board and senior management get timely and
knowledge of the risks inherent to each individual appropriate information on the condition of the bank’s
exposure for the purpose of striking a balance between asset portfolio, including classification of assets and
risk and earnings opportunities and in compliance with the level of provisions and reserves. The information
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the overall goals defined by Board of Directors and includes, at minimum, summary results of the portfolio
Bangladesh Bank. review, comparative trends in the overall quality of
Credit risk mitigation problem assets, and measurements of existing or
Potential credit losses from any given account, customer anticipated deterioration in asset quality and losses
or portfolio are mitigated using a range of tools such as expected to be incurred on the portfolios. Significant
concentration risk is also reported to the Board and
c
collateral, credit insurance, and other guarantees. The
reliance that can be placed on these mitigants is carefully senior management for review and deliberation. NRBC
Bank’s Credit Administration Department (CAD) monitors
d.
assessed in light of issues such as legal certainty and
enforceability, market valuation, and counterparty risk the asset portfolio of the Bank. Bank’s credit monitoring
of the guarantor. Collateral types which are eligible for system provides an early indication/alert about the
risk mitigation include cash; residential, commercial deterioration of loans that allows effective management
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and industrial property; fixed assets such as motor of loans in a rational manner to prevent them from
vehicles, plant and machinery; marketable securities; turning into Non-Performing Loans (NPL).
commodities; bank guarantees; and letters of credit. Asset - Liability risk management
Collateral is valued by independent third party surveyor Asset and Liability Management is the practice of
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in accordance with our credit policy and procedures. managing risks that arises due to mismatches between
Collateral coverage the assets and liabilities. Asset Liability Management
Collateral coverage may be in the form of land and (ALM) is a strategic management tool to manage interest
rate risk, liquidity risk and foreign exchange risk faced by
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building, financial instrument such as FDR, Marketable

securities etc. In the event of downside, value from bank.
liquidation of collateral securities may provide some Liquidity Risk
degree of protection against credit risk. Valuation of land Liquidity risk is the potential for loss to a bank arising
and building is usually done by third party surveyor. Cash from either its inability to meet its obligations as they
security by default provides maximum protection against fall due or to fund growth of assets without incurring
credit risk and exposure is usually calculated net-off cash unacceptable cost or losses.
security.
Measurement and Management of Liquidity Risk
Hypothecation
Fund Flow Approach: It involves
Leased assets are primary security which is inherently comprehensive tracking of cash flow
provided some degree of protection against credit risk. mismatches for measuring and
managing net funding requirements.
Hypothecated capital machinery and stock of goods is an This approach is also called Structural
usual primary security measure whereas marketability Liquidity Profile (SLP)
and control of the asset is important in credit risk

mitigation. Liquidity Risk
Measurement Regulatory liquidity indicators
Guarantee (RLI): NRBCB has iden�fied
several key liquidity risk
Guarantee of high net worth individuals/directors and indicators, which are monito-
corporate guarantee with good business standing usually red on a regular basis to
ensure healthy liquidity
provides credit enhancement. Cross default option plays posi�on. The ra�os are LCR,
a vital role because due to guarantee of an entity favoring NSFR, MCO, MTF, ADR etc.

The purpose of liquidity risk management is to assess the income and the level of other interest- sensitive income
necessity of funds to meet financial obligations on time and operating expenses.
and to ensure adequacy of funding to fulfill short-term Foreign exchange risk management:
and long-term financial needs appropriately even under
stressed conditions. NRBCB has in place a comprehensive Foreign Exchange Risk refers to the potential changes rate
in-built liquidity monitoring process that has been fluctuations, adverse exchange positioning or change
enhanced in the past few years by emBRACing stringent in the market prices. FX Risk of the Bank is minimal,
liquidity review and safeguard measures imposed by as all the transactions are carried out on behalf of the
regulator on the sector. customers against underlying L/C commitments and
other remittance requirements. This risk usually affects
An important aspect of measuring liquidity is making import-export business, but it can also affect investors
assumptions about future funding needs. We have making international investments. If money is converted
identified several key liquidity risk indicators, which are to another currency to make an investment, then any
monitored on a regular basis to ensure healthy liquidity changes in the currency exchange rate will cause that
position. These are Deposit mix, Liquid asset to short investment’s value to either decrease or increase when
term liabilities, Liquidity Coverage Ratio, Net Stable the investment is sold and converted back into the
Funding Ratio, etc. original currency.
To strengthen liquidity management we have formed
Sources of Foreign Exchange Risk
a Board approved Asset and Liability Management
Committee (ALCO) to overlook the liquidity status  Exchange Rate fluctuations
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of the bank. ALCO being the overall supervisory in  Adverse Foreign Exchange position of the Bank
managing liquidity risk of NRBCB meets monthly to  Changes in the market price of Foreign Ex-
oversee adequacy of overall liquidity aspects from other change
obligations. The impact arising from all strategic and Foreign exchange risks are measured, monitored and
medium term decisions taken by the Board and the addressed by Iternational Division and Treasury Division
corporate management on liquidity is also ascertained
by this high level committee comprising key divisional
c through front office and back office. The Foreign Exchange
risks is minimized through proper market analysis, Real
d.
heads. time pricing of Foreign exchange and money market
Interest Rate Risk products, fixation of different market related limits
Interest Rate risk is a possible loss from adverse (overnight, stop loss and Management Action Trigger),
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movements in market interest rates. Changes in interest Counter parties credit limits set by the management and
rate affect a bank’s earnings by changing its net interest Officer. All Foreign Exchange transactions are revalued
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Impact of Interest Rate Risk

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Earnings Perspective Economic value Perspective
Earning Perspective: Traditional Gap Economic value Perspective: Duration Gap

Analysis (TGA) Analysis (DGA)
TGA is to measure the level of a bank’s exposure to DGA is to measure the level of a bank’s exposure to
interest rate risk in terms of sensitivity of its NII to interest interest rate risk in terms of sensitivity of Market value of
rate movements over the horizon of analysis which is its equity (MVE) to interest rate movements. It involves
usually one year. It involves bucketing of all RSA and RSL bucketing of all RSA and RSL as per residual
and off-balance sheet items computing Earnings at Risk maturity/re-pricing dates in various time bands and
(EaR) computing the Modified Duration Gap (MDG).
at weighted average exchange rates as provided by Internal Control and Compliance risk management
Bangladesh Bank at the end of each month. All NOSTRO NRBCB has a structured Internal Control and Compliance
accounts are reconciled regularly and outstanding entries (ICC) Division. The main objective of internal control is
are reviewed by the management for its settlement/ to help the bank to perform better through the use of
recompilation. The open position is maintained at the its resources. Through internal control system bank
end of day within the stipulated limits as prescribed by identifies its weakness and takes appropriate measures
the Bangladesh Bank. to overcome the same. The main objectives of internal
NRBC Bank 135

control are as follows: Bangladesh Bank, and the instructions circulated by them
Performance objectives: To maintain the efficiency and from time to time.
effectiveness of overall operating activities. NRBCB’s activities towards money laundering risk
Information objectives: To ensure the reliability, management
completeness and timelines of financial and management Money Laundering is deemed as a finance-based crime
information. that buckles down to conceal, misrepresent and disguise
Compliance objectives: To ensure the robust compliance all the details with regard to illegal financial income
with applicable laws and regulations. taking advantage of the vulnerability of the Financial
Ensuring compliance culture Institutions mostly in the developing countries. Due to
the rapid incorporation of sophisticated technology in a
We have a very robust structure within the organization globalized financial sector; money laundering has become
to strictly combat ICC risk. There is a vivid and clear Audit a truly worldwide scourge that has devastating economic,
Charter formulated in order to ensure transparency, security, and social consequences. Money launderers
accountability and authenticity. By the virtue of this are seen to concentrate on developing countries like
framework, the audit teams have the accessibility to any Bangladesh. Therefore, Bangladesh strengthens its Anti
information across the bank. They are entitled to make Money Laundering system time to time by introducing and
any query deems fit during the execution of the auditing. updating legislations, acts such as Anti Money Laundering
The Board of Directors of the bank has established an Act, Anti-Terrorism Act and making it compulsory for
Audit Committee to monitor the effectiveness of the
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the reporting organizations to comply with the same. In
internal control system of the Bank. The Audit committee addition, being the main regulatory body of the banks
meets the senior management periodically to discuss the and financial institutions, Bangladesh Bank has guided
effectiveness of the internal control system of the bank us through guidance note, policy, circular, circular letter,
and ensures that the management has taken appropriate instructions etc. in compliance with the laws of land
actions as per the recommendations of the auditors and
c from time to time, Bank recognizes its obligation to
the Internal Control and Compliance Division (ICCD). As join with governments, international organizations and
per the approved audit plan, ICCD completes the audit and other financial services organizations to close off the
d.
inspection tasks of branches and head Office divisions/ financial channels that money launderers and terrorist
departments in 2018. The significant deficiencies organizations use for their illicit purposes. The Board of
identified by Internal Control team are reported to the Directors of the Bank view Money Laundering Prevention
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Audit Committee of the Board. In addition to the internal as part of Risk Management strategy and not simply
audit & inspection team, the monitoring team conducts as a stand-alone requirement that is being imposed by
surprise inspections at the Branches. Any violation and legislation but also is fully committed to condemn Money
breach in compliance issues are dealt with iron hand. Laundering and Terrorist Financing in all its forms and
Role of External Auditors in Evaluating Internal
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manifestation. To fulfill the commitment, NRBC Bank

Control System Limited has developed comprehensive policy on “Money
It is known to all that External Auditors by dint of their Laundering Prevention”, “Combating Financing of
independence from the management of the bank can Terrorism”, and “Know Your Customer” approved by the
Board of Directors. We continuously strive to enhance
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provide unbiased recommendations as far as the strengths

and weaknesses are concerned relating to the internal our own policies, procedures, systems & technology
control system of the bank, which is done on regular on the guidance of our Board and have issued multiple
periodicity. They examine the records, transactions of the circulars, circular letters and instructions time to time in
bank and evaluate the accounting policy, disclosure policy compliance with the updated regulations. As part of its
and methods of the financial estimations made by the anti - money laundering policy, every year NRBC Bank
Bank. This allows the Board and the management to have communicates a statement to all its employees through
an independent overview on the overall control system the Chief Executive Officer that clearly sets forth the way
of the bank. Along with the periodic Bangladesh Bank forward for the present year and shares the initiatives
audit, other external auditors conduct regular auditing to taken in the last year pertaining to combating Money
find out the control lapses prevalent within the system. Laundering and Terrorist Financing. The bank has also
nominated Chief Anti Money Laundering Compliance
Money Laundering risk management officer (CAMLCO) and Deputy CAMLCO who ensure that
In order to ensure the best corporate governance the bank is compliant with AML’s concern. In addition,
practices and aiming at protecting the Bank and its Branch Anti Money Laundering Compliance officer
employees, shareholders, Management and Customers, (BAMLCO) at branches, independently makes the bank
NRBCB, as a financial intermediary, is committed to take compliant on AML matters. The regulatory requirements
preventive measures against money laundering and are being complied with and the guidelines are being
terrorist financing in line with the Money Laundering followed by the bank properly. Branch Anti Money
Prevention Amendment Act, 2015, the Anti-Terrorism Laundering Compliance officer (BAMLCO) at branches,
Act, 2009 (Amended), Anti-Terrorism Rules 2013, the reviews and verifies the transactions of accounts to
Guidance Notes on Prevention of Money Laundering of

make Suspicious Transactions Reports (STR), and ensures  Install, modify, enhance and maintain data sys-
AML and CFT compliance culture throughout the bank. tem security software
Training is being conducted continuously for all the  IT division manages all changes as per approved
officers of the bank to create awareness and develop the policy and process and also maintains all logs/
skill for ensuring KYC (Know your Customer) compliance forms
and identifying suspicious activities/transactions.
 Continue to enhance the Information/Cyber
Information and Communication Technology (ICT) security awareness programs for employees
risk management and customers.
As bank adopts technology as a part of their ongoing  Review system logs for the Bank’s infrastructure
strategic tool to face challenges in the emerging realities to identify trends. Investigate abnormalities
of business, they are increasingly exposed to technology and exceptions to the Bank’s Information Secu-
risks. The risk has been increased in the cyber zone for rity Program.
the introduction of internet Banking and increasing of  Plan for proper disaster management related to
E-commerce transaction across the world. ICT services
An integral part of NRBCB’s risk management endeavor is  Establish an IT governance framework inside
its strong “IT Security Policy” and its adherence to these the bank
principles. These policies define responsibilities and
requirements for protecting information and information Risk Management practice at NRBCB under Basel-
III
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systems. They also define hardware, network, and related
communication technologies and their use in providing Bangladesh Bank vide BRPD Circular No – 18 dated
financial services. December 21, 2014 issued “Guidelines on Risk Based
The bank has taken good number of initiatives to Capital Adequacy (Revised Regulatory Capital Framework
for banks in line with Basel III)” with effect From January
manage ICT risks:
01, 2015. NRBCB is well poised for implementing Basel III
c
Treating information security as a process not product,
NRBC Bank takes adequate information security initiatives
phase by phase during the period 2015-2019.
d.
to ensure the security of its processed information. The Pillar-I (Minimum Capital Requirement)
Bank is committed to protect customer information and In compliance with the Risk Based Capital Adequacy
assets from any type of unauthorized use and/or fraud. guidelines under Basel III, NRBCB computes Minimum
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Following tasks are carried out to manage ICT risk of the Capital Requirement (MCR) against credit risk, market
Bank. risk and operational risk. Bank had adopted standardized
 Work on determining acceptable risk levels approach under credit risk, basic indicator approach
for the Bank and ensuring IT environments are under operational risk and standardized approach under
market risk for assessing minimum capital requirement.
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adequately protected from potential risks and

threats. Pillar-II (Internal Capital Adequacy Assessment
 Review system vulnerability and penetration Process)
testing and IT audits to ensure findings are suf- To comply with Basel Pillar-II norms (Internal Capital
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ficiently addressed. Adequacy Assessment Process), NRBCB assess

 Establish multi-layered boundary defenses to additional capital - against residual risk, liquidity risk,
deploy a security wall (fire wall) between the credit concentration risk, reputation risk, strategic
un-trusted external networks. risk, settlement risk, evaluation of six core risks areas,
 Participate in development and implementation environmental risk and other material risk - which is
of the appropriate and effective controls to mit- finally determined by Supervisory Review Process(
igate identified threats and risks. SRP) and SREP (Supervisory Review Evaluation Process)
dialogue.
 Monitor access to all systems and maintains ac-
cess control profiles on computer network and Pillar-III (Market Discipline)
systems. Track documentation of access autho- To meet the Pillar III requirements of Basel III, NRBCB
rizations to all resources. has adhered to disclosure norms as stipulated in the
 IT Assets inventory is adequately maintained guidelines of Bangladesh Bank (BB). The disclosures
and reviewed periodically. for every year are available in Bank’s annual report and
website. Under market disclosure bank reveals various
 Develop and/or maintain appropriate segrega-
types of qualitative and quantitative information so that
tion of duties within and across applications.
stakeholders can assess the position of a bank regarding
 Research and investigate measures that address holding of assets and to identify the risks relating to the
data security risks and potential losses for re- assets and capital adequacy to meet probable loss of
porting purposes. assets.
NRBC Bank 137

NRBCB Risk Management Practice as per Risk Yearwise CRAR of NRBC Bank
Management Report 18.63%
The Management and Board of NRBC Bank firmly believe 13.47%
14.03%
13.31%
that effective risk management practices prerequisite
for sustainable growth. Therefore, it has set its policies, 10.625% 11.25% 11.875%
10.00%
procedures, monitoring and oversights in order to contain
the internal and external risks at a minimal level.
Risk reports
2015 2016 2017 2018
Aggregate measures of risk across products and Required Maintained
businesses are used in compliance with policies, limits,

and guidelines. They also provide a clear statement of Stress testing
the amounts, types, and sensitivities of the various risks Stress testing programs at enterprise level allow the
in the Bank’s portfolios. Senior management and the Bank to estimate the potential impact on income, capital
Board use this information to understand the Bank’s and liquidity of significant changes in market conditions,
risk profile and the performance of the portfolios. In credit environment, liquidity demands, or other risk
addition, Comprehensive Risk Management Report factors. The development, approval and on-going review
(CRMR) is submitted to Bangladesh Bank of the Bank’s stress testing programs are subject to
Bangladesh Bank’s updated guidelines and instructions.
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on half yearly basis within the following month
of reporting period. Executive Risk Management Stress testing report is prepared on quarterly basis and
Committee (ERMC) review these reports, recommend presented to the Risk Management Committee of the
action plans to concern department for mitigating Board
identified risk areas and follow- up the implementation Internal Capital Adequacy Assessment Process
of previous recommendations. (ICAAP)
CRAR (Capital to Risk Weighted Asset Ratio)
c To assess the overall risk profile and capital requirement
d.
Position of Banks in compliance with Basel III thereof, every year bank has to prepare and submit
transitional arrangement Internal Capital Adequacy Assessment Process (ICAAP)
In Bank business capital is very much precious and acts Report to Bangladesh Bank. NRBC Bank has developed
its own Internal Capital Adequacy Assessment Process
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as the cushion against risk. NRBCB is determined to

maintain the CRAR as prescribed in the Basel III accord. (ICAAP) document which was subsequently approved
As a result, it was observed that In December 2018 CRAR by the Board of Directors. Based on the approved
of the bank reached at 14.03% from 13.47% of December methodology each year bank evaluates its risk profile and
2017 despite of the growth of loans and advances by calculates additional capital requirement.
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9.28%.
Status of Some Key Risk Areas of NRBC Bank

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Risk Areas Dec-2017 Dec-2018 Risk Appetite-2018
Capital to Risk Weighted Asset Ratio (CRAR) 13.47% 14.03% 12.50%

Liquidity Coverage Ratio (LCR) 109.30% 148.83% >=100.00% (Regulatory limit)
Net Stable Funding Ratio (NSFR) 112.95% 113.80% >100.00% (Regulatory limit)
Non Performing Loan (NPL) Ratio 2.40% 2.96% 2.25%
Advance Deposit Ratio (ADR) 94.97% 86.02% 85.00%
Large Loan Concentration 43.20% 45.68% 56.00% (Regulatory limit)
Top 20 borrower Concentration 28.18% 26.88% 27.00%
Top-10 deposit suppliers to total deposit (%) 14.60% 16.34% 17.00%
High cost deposit to total deposit (%) 70.92% 71.04% 80.00%
Operating expenses to operating income (%) 47.83% 49.04% 47.00%
Number of rated customer 60 431
Lastly, NRBC Bank wants to ensure the balance between risk with return through ensuring effective risk management
and establishing healthy organizational ethos in the days ahead.

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Pillar III of Basel III Market discipline for the year ended December 31, 2018
d.
1. Introduction 3. Components of Disclosure Framework
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In response to the global financial crisis 2008, Basel i) Scope of application ii) Capital structure iii) Capital
Committee for Banking Supervision (BCBS) came up with adequacy iv) Credit risk v) Equities disclosures for banking
a new set of capital and liquidity standards in the name of book positions vi) Interest Rate Risk in the Banking Book
Basel III in 2010. To cope up with the international best (IRRBB) vii) Market risk viii) Operational risk ix) Leverage
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practices and to make the bank’s capital shock absorbent ratio x) Liquidity ratio xi) Remuneration
Bangladesh Bank (BB) issued Guidelines on Risk Based
capital adequacy (a revised regulatory capital framework i) Scope of application
for banks in line with Basel III) in December 2014. NRB Commercial Bank Ltd. (NRBCB) applies capital
adequacy framework for both solo and consolidated
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The objectives of the market discipline in the revised

framework are to establish more transparent and more basis. The Bank has one subsidiary company named
disciplined financial market, so that stakeholders can NRB Commercial Securities Limited (NRBCSL), obtained
assess the position of the bank regarding holding of permission from Bangladesh Bank in 2015.
asset and capital adequacy to meet probable loss of ‘Solo Basis’ refers to all position of the NRB Commercial
assets. In compliance with BRPD circular no. 18 dated Bank and its local and overseas branches/offices.
December 21, 2014 on ‘Guidelines on Risk Based Capital
Adequacy’ following detailed quantitative and qualitative ‘Consolidated Basis’ refers to all position of the NRB
disclosures are provided covering scope of capital Commercial bank (including its local and overseas
adequacy framework, risk exposure and assessment branches) and its subsidiary company NRBCSL engaged
methodologies, risk management and mitigation in financial activities.
strategies, and capital adequacy of the bank, etc.
ii) Capital structure
2. Disclosure Policy
Qualitative disclosure
These disclosures are intended for market participants
to assess key information about the bank’s exposure The composition of regulatory capital is different than
to various risks and to provide a consistent and accounting capital. The terms and conditions of the main
understandable disclosure framework for easy features of capital instruments, especially, eligibility for
comparison among banks operating in the market. The inclusion in Common Equity Tier-1 (CET1), Additional
report is prepared once a year and is available in the Tier-1 and Tier-2 have been prepared based on the
banks website (https://www.nrbcommercialbank.com). ‘Guidelines on Risk Based Capital Adequacy’ and other
instruction given by Bangladesh Bank.
NRBC Bank 139

Tier-1 capital of NRBCB consists of Common Equity Tier-1 Quantitative disclosure BDT Crore
and Additional Tier-1 capital. Tier-1 capital is also known
as Going concern capital as it allows a bank to continue its Particulars Solo Consolidate
ongoing activities. Common Equity Tier 1 (CET1) capital
of NRBCB consists of paid up Capital, Statutory reserve, Capital Requirement for 460.27 459.83
General reserve, Retained earnings and Minority interest Credit Risk
in subsidiaries after netting regulatory adjustments
Capital Requirement for 19.02 20.47
applicable on CET1 as mentioned in RBCA guideline.
Market Risk
Tier-2 capital is also known as Gone-Concern Capital, is
Capital Requirement for 45.07 45.35
the Capital which will absorb losses only in a situation of
liquidation of the bank. Tier-2 capital of NRBCB comprised Operational Risk
of General Provisions and revaluation reserve. Total Capital Requirement 524.36 525.65
Quantitative disclosure BDT Crore Total Eligible Capital 735.76 740.43
Capital to Risk Weighted 14.03 14.09
Particulars Solo Consolidated Asset Ratio(CRAR %)
Common Equity Tier-1 : Common Equity Tier-1 12.93 12.98
Paid up Capital 514.50 514.50 Capital Ratio (%)
Statutory Reserve 105.03 105.03 Total Tier-1 Capital ratio (%) 12.93 12.98
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Retained Earning 84.13 84.73 Total Tier-2 Capital ratio (%) 1.10 1.10
Minority interest in 0.00 4.07 Capital Conservation Buffer 98.32 98.55
Subsidiaries (1.875% of RWA)
Regulatory Adjustments :
c Available Capital for Pillar II 113.08 116.23
requirement
Deferred Tax Assets (DTA) 25.78 25.78
The Bank complied with all the required conditions for
d.
Total Common Equity Tier-1 677.88 682.55
maintaining regulatory capital as stipulated in the revised
Additional Tier-1 : RBCA guidelines by Bangladesh Bank
Total Tier-1 Capital 677.88 682.55
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iv) Credit risk

Tier-2 Capital :
Credit risk is defined as the probability of failure of
General Provisions 57.53 57.53 counterparty to meet its obligation as per agreed
Revaluation reserve 1.74 1.74 terms and conditions. The main objective of credit risk
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management is to minimize the negative impact through

Regulatory Adjustments : adopting proper mitigates and also limiting credit risk
Revaluation reserve 1.40 1.40 exposures within acceptable limit.
Total Tier-2 Capital 57.88 57.88 The Board approves the credit policy keeping in view
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Total Regulatory Capital 735.76 740.43 relevant Bangladesh Bank guidelines to ensure best
practice in credit risk management and maintain quality
iii) Capital adequacy of assets. Authorities are properly delegated in ensuring
check and balance in credit operation at every stage i.e.
Qualitative disclosure screening, assessing risk, identification, management and
NRBC Bank focuses on strengthening risk management mitigation of credit risk as well as monitoring, supervision
and control environment rather than increasing capital to and recovery of loans with provision for early warning
cover up weak risk management and control. In parallel system. There is a separate Credit Risk Management
to business growth, the bank effectively manages its Division for ensuring proper risk management of Loans
capital to meet regulatory requirement considering the and Credit Administration Division for monitoring
risk profile. and recovery of irregular loans. Adequate provision is
maintained against classified loans as per Bangladesh
The Bank follows following approaches for calculating Bank guidelines. Statuses of loans are regularly reported
Risk Weighted Asset (RWA) as per Basel-III guidelines to the Board through Risk Management Paper.
stated in BRPD Circular No.18 dated December 21, 2014
of Bangladesh Bank: The Capital requirement for credit risk is based on the
risk assessment made by External Credit Assessment
 Standardized approach for credit risk Institutions (ECAIs) recognized by Bangladesh Bank
 Standardized approach for Market risk for capital adequacy purposes. The Bank assigned risk
weights to all their on-balance sheet and off-balance
 Basic indicator approach for operational risk sheet exposures. Risk weights are based on external
credit rating which mapped with the Bangladesh
Bank rating grade or a fixed weight that is specified by

Bangladesh Bank. Policies and processes for collateral Valuation and
Credit Risk Management Processes in NRBC Bank Management
encompasses with the following steps: The NRBC Bank has set a policy on Collateral Valuation
Credit Risk Identification and Management. The bank appoints approved surveyors
for valuation of collateral/securities objectively. The
 Critical analysis and review of delinquent valuation methodology that Bank usually applies are
accounts to identify weakness in credit. forced sale/fire sale value, fair/market value etc. The
 Credit risk for the counterparty arises from Bank creates Legal claims on collateral/securities through
an aggregation of the following: Financial mortgage; charge creation, legal documentation etc.
Risk, Business/Industry Risk, Security Risk, Eligible Collateral:
Management Risk As per Bangladesh Bank guidelines following items will
Credit Risk Assessment and Measurement be included as eligible collateral in determining base for
 Use of credit risk rating system to grade the provision:
quality of borrowers. Collection the Credit  100% of deposit under lien against the loan
Information Bureau (CIB) report of the potential  100% of the value of government bond/savings
borrower from the Central Bank. certificate under lien
 Stress Testing of loan portfolios under various  100% of the value of guarantee given by Gov-
scenarios. Ensuring Credit Rating of the ernment or Bangladesh Bank
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Customer from External Credit Rating Agencies.  100% of the market value of gold or gold orna-
Credit Risk Control ments pledged with the bank.
 Credit Policy which documents the credit  50% of the market value of easily marketable
risk rating collateral policy and policies on commodities kept under control of the bank
rehabilitation and restructuring of problematic  Maximum 50% of the market value of land and
and delinquent loans.
c building mortgaged with the bank
 50% of the average market value for last 06
d.
 Efficient credit personnel to deal with the credit
approval, processing and review. months or 50% of the face value, whichever is
Credit Risk Monitoring less, of the shares traded in stock exchange.
Impaired Credit:
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 Past due principal or interest payment, past due

To define past due and impairment for classification and
trade bills, account excesses and breach of loan
provisioning, the bank follows Bangladesh Bank Circulars
covenants. and Guidelines. The summary of some objective criteria
 All loan facilities are reviewed and approved for loan classification and provisioning requirement as
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through the submission of a Credit Application stipulated by the central bank, BRPD circular no. 14 dated
annually. 23 September 2012 and BRPD circular no.16 dated 18
November 2014 are as below:
Loan Classification and Provision
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Loan Category Sub Standard Doubtful Bad & Loss

Overdue Provision Overdue Provision Overdue Provision
Period Period Period
Continuous Loan 3 months or more 20% 6 months or more 50% 9 months 100%
but less than 6 but less than 9 or more
months months
Demand Loan 3 months or more 20% 6 months or more 50% 9 months 100%
but less than 6 but less than 9 or more
months months
Fixed Term 6 months or more 20% 9 months or more 50% 12 100%
(Amounting up but less than 9 but less than 12 months
to 10 lacs. ) months months or more
Fixed Term 3 months or more 20% 6 months or more 50% 9 months 100%
(For more than but less than 6 but less than 9 or more
10 lacs. ) months months
Short Term 12 months or more 5% 36 months or more 5% 60 100%
Agricultural & but less than 36 but less than 60 months
Micro months months or more
Credit
NRBC Bank 141

Rate of General and Specific provision: Total gross credit risk exposures broken down by major
types of credit exposure:
General provision on:
Unclassified general loans and advances 1% Particulars BDT Crore
Unclassified small and medium enterprise 0.25% Overdraft 809.23
Loans to BHs/MBs/SDs against shares etc. 2% Cash Credit 945.78

Unclassified loans for housing finance and Time loan 537.54
2%
on loans for professionals Term loan 647.64
Unclassified consumer financing other than Payment Against Document 13.76
5%
housing finance and loans for professionals
Short term agri. credit and micro credit 1% Loans against Trust Receipt 241.74
Off balance sheet exposures 1% Packing Credit 52.56
Specific provision on: EDF Loan 27.97

Substandard loans and advances other than SME Credit 394.20
20%
short term agri. credit and micro credit
Lease Finance 52.19
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Doubtful loans and advances other than
50%
short term agri. credit and micro credit Hire Purchase 154.15
Bad/loss loans and advances 100% Consumer Loan 72.95
Substandard short term agri. credit and Staff Loan 48.57
5%
micro credit
Doubtful short term agri. credit and micro
c 5%
Other Loans and Advances 813.49
credit Total 4811.78
d.
Quantitative Disclosures of NRBC Bank’s Credit Risk: Industry or counterparty type distribution of exposures,
broken down by major types of credit exposures:
Geographical distribution of exposures, broken down in
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significant areas by major types of credit exposure: Industries BDT Crore

Urban BDT Crore Agricultural Industry 96.37
Dhaka 2967.32 Textile 247.14
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Chattogram 686.90 RMG 537.04

Rajshahi 261.93 NBFI 59.88
Sylhet 104.25 Food 18.38
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Barishal 44.36 Bevarage 15.50

Rangpur 26.86 Pharmaceutical 24.23
Khulna 15.30 Chemical 11.25
Mymensingh 9.15 Electrical 9.11
Rural Construction 307.96
Dhaka 513.66 House Building Residential 87.12
Chattogram 116.99 Leather 6.63
Rajshahi 0.00 Service Industry 118.95
Sylhet 10.65 Transport 24.08
Barishal 20.68 Basic Metal 0.71
Rangpur 21.99 Capital Market 1.22
Khulna 11.74 Car loan 0.55
Mymensingh 0.00 Furniture 0.43
Total 4811.78 Insurance 0.38
Consumer Finance 178.90

Printing 65.76 Opening balance 46.13
Ship Breaking 59.02 Provisions made during the period 26.26
SME 929.13 Write-off
Staff Loan 48.57 Write-back of excess provisions
Steel 239.27 Closing balance 72.39
Trade Industry 926.52 v. Equities: Disclosures for banking book positions:
Card 32.57 Investment in equity securities by NRBC Bank is broadly
Other Manufacturing Industry 709.00 categorized into two parts: Quoted securities (Ordinary
shares, Mutual Fund) and Un-quoted securities
Others 56.12
(including preference share and subscription for private
Total 4811.78 placement). Unquoted securities are categorized as
banking book exposures which are further subdivided
Residual contractual maturity breakdown of the whole into two groups: unquoted securities which are invested
portfolio, broken down by major types of credit exposure: without any expectation that these will be quoted in
near future (i.e. held to maturity) and securities that are
Maturity BDT Crore acquired under private placement or IPO and are going
Payable on demand 705.36 to be traded in the secondary market after completing
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required formalities. Usually these securities are held for
Not more than 3 months 1365.21 trading or investment for making capital gains.
More than 3 months but not more than 1536.90
1 year BDT Crore
More than 1 year but not more than 5 754.74 Particulars Cost Market Unrealized
years
c (Solo basis) Price Price Gain/Loss
More than 5 years 449.57 Quoted share 74.84 71.60 (3.24)
d.
Total 4811.78 Un-Quoted Share 4.29
Gross Non-performing Asset: All investment securities are initially recognized at cost.
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Premiums are amortized and discount accredited, using

Unclassified BDT Crore the effective yield method and are taken to discount
Standard Including Staff Loan 4460.28 income. The valuation methods of Marking to Market for
investment used are
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Special Mention Account 209.12

a) Held to Maturity (HTM) and by definition the in-
Sub-Total (a) 4669.40 vestments which have “Fixed or determinable” pay-
Classified ments and fixed maturity that the group has the
positive intent and ability to hold to maturity other
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Substandard Loan 11.33

than those that meet the definition of ‘Held at amor-
Doubtful 23.52 tized cost others’ are classified as held to maturity.
Bad/loss 107.53 These investments are subsequently measured at
amortized cost, less any provision for impairment
Sub-Total (b) 142.38 in value. Amortized cost is calculated by taking into
Total (a+b) 4811.78 account any discount or premium in acquisition.
Any gain or loss on such investments is recognized
Movement of Nonperforming Asset (NPAs) and specific
in the statement of income when the investment is
provisions of NRBC Bank:
derecognized or impaired as per IAS-39 “Financial In-
Movement of Nonperforming Asset (NPAs) struments: Recognition and Measurement”
BDT Crore b) Held for Trading (HFT) is a method where invest-
Gross Non Performing Assets(NPAs) 142.38 ments are acquired principally for the purpose of
selling or repurchasing or in short trading or if desig-
Movement of NPAs nated as such by the management. After initial rec-
Opening balance 103.26 ognition, investments are measured at present value
Addition 435.01 and any change in the fair value is recognized in the
statement of income for the period in which it arises.
Reduction -395.89 Transaction costs, if any, are not added to the value
Closing balance 142.38 of investments at initial recognition.
Movement of specific provisions for NPAs c) Revaluation: According to DOS Circular no.-05, dated
NRBC Bank 143

26th May 2008, the HFT securities are revalued once banking book under various stress scenarios.
each week using Marking to Market concept and the
Quantitative Disclosure:
HTM securities are amortized once a year according
to Bangladesh Bank guidelines. The HTM securities Particulars In Years
are also revaluated if they are reclassified to HFT cat-
egory with the Board’s approval. Duration in Asset 1.370
Capital Charge on Equities: Duration in Liabilities 1.374
Duration Gap (in Years) 0.08
BDT Crore
Interest rate risk in banking book as of Dec 31 , 2017 is
st
Capital calculated as change in Market Value (MV) of equity as
Particulars Amount
Charge
below:
Specific Risk 74.84 7.48
General Market Risk 74.84 7.48 BDT Crore
Total 149.68 14.96 Interest rate change 1% 2% 3%
Change in market value (4.45) (8.89) (13.35)
vi. Interest Rate Risk in the Banking Book (IRRBB): of equity
It is the risk related to interest income arising from a
The below result implies that bank has more interest
mismatch between the duration of assets and liabilities
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that arises in the normal course of business activities. rate sensitive assets than interest rate sensitive liabilities
Changes in interest rates affect the underlying value of and increase in interest rate may cause a increase in the
the bank’s assets, liabilities, and off-balance-sheet (OBS) economic value of bank’s capital.
instruments because the present value of future cash Sensitivity Analysis:
flows (and in some cases, the cash flows themselves)
c
changes when interest rates change. BDT Crore
Organizational Structure: The Asset Liability Management Total Rate Sensitive 5687.44
d.
Committee of the Bank monitors and manages the IRRBB. Asset
The ALCO is responsible for management of the balance
sheet of the Bank with a view to manage the market risk Total Rate Sensitive 5167.21
Liabilities
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exposure by the Bank within the risk parameters laid

down by the Board of Directors/Risk Committee. Cumulative Gap
IRRBB Management procedure: < 3 months 593.79
IRRBB architecture is the framework to measure, monitor 3-6 months 388.92
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and control the adverse impact of interest rates on the 6-12 months 450.00
Bank’s financial condition within tolerable limits. This
impact is calculated from following perspectives: CRAR before shock 14.03%
(Solo)
i) Earning perspective: Indicates the impact on
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Assumed Change in
Bank’s net interest income (NII) in the short 1% 2% 3%
Interest Rate
term.
Capital after shock 731.32 726.87 722.42
ii) Economic perspective: Indicates the impact on
the net-worth of bank due to re-pricing of as- CRAR after shock 13.96% 13.89% 13.81%
sets, liabilities and off-balance sheet items. vii. Market Risk:
The ALM & Market Risk Policies define the framework for Market risk is the risk of adverse revaluation or movement
managing IRRBB through measures such as: of any financial instrument as a consequence of changes
a) Interest Rate Sensitivity Report: Measures mis- in market prices or rates. Market risk exists in all trading,
matches between rate sensitive liabilities and banking and investment portfolios. But for the purpose
rate sensitive assets in various tenor buckets of this report, it is considered as a risk specific to trading
book of the Bank. The major types of market risk as
based on re-pricing or maturity, as applicable.
specified in the Risk Based Capital Adequacy (RBCA) are
b) Duration Gap Analysis: Measures the mismatch as follows:
in duration of assets & liabilities and the resul-
 Interest rate risk
tant impact on market value of equity.
 Foreign exchange risk
c) Stress Testing: It is conducted on quarterly basis
as per the directives of Bangladesh Bank to gain  Equity position and
better insight into the vulnerable issue of IRRBB.
 Commodity risk.
Evaluates the impact on duration of capital of

Among the above list the main type of market risk faced viii. Operational Risk:
by the Bank are interest rate risk and foreign exchange
Operational risk is the risk of direct or indirect loss due
risk. The management of Bank has given significant
to an event or action resulting from the failure of internal
attention to market risk in trading book, to assess the
processes, people and systems, or from external events.
potential impact on the Bank’s business due to the
We seek to minimize exposure to operational risk, subject
unprecedented volatility in financial markets.
to cost benefit trade-offs.
Views of Board of Directors (BoD) on trading/investment
Views of BoD on system to reduce operational risk:
activities:
Banks Internal Control & Compliance (ICCD) is the main
The Board approves all policies related to market risk,
tool in managing operational risk. Management through
sets limits and reviews compliance on a regular basis.
three units of ICCD i.e. monitoring, compliance and Audit
The objective is to obtain maximum returns without
& Inspection controls overall operation of the bank.
taking undue risks.
Board audit committee directly oversees the functions of
Methods used to measure Market Risk: ICCD to prevent operational risk.
Bank applies maturity method in measuring interest rate Performance gap of executives and staffs:
risk in respect of securities in trading book. The capital
NRBC Bank is an equal opportunity employer. At NRBC
charge for entire market risk exposure is computed
Bank we recognize the importance of having the right
under the standardized approach using the maturity
people at right positions to achieve organizational
method and in accordance with the guideline issued by
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goals. Our recruitment and selection is governed by
Bangladesh Bank.
the philosophies of fairness, transparency and diversity.
Market Risk Management System: Understanding what is working well and what requires
further support is essential to our performance
The Treasury Division manage market risk covering
management system. The performance management
liquidity, interest rate and foreign exchange risks with
process aims to clarify what is expected from employees
oversight from Asset-Liability Management Committee
c
(ALCO) comprising senior executives of the Bank.
as well as how it is to be achieved.
Potential external Event:
d.
Policies and procedure for mitigating market risk are
mentioned below: No potential external event is expected to expose the
Bank to significant operational risk.
 Risk Management and reporting is based on pa-
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rameters such as Maturity Gap Analysis, Dura- Policies and processes for mitigating operational risk:
tion Gap Analysis. As there is no upside of this risk, the objective of the
 Risk Profiles are analyzed and mitigating strate- management of operational risk is to minimize the risk
gies/processes are suggested by the Asset Lia- in cost effective manner. Currently bank is not using
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bility Committee (ALCO). any model or tool to capture operational loss data for
historical analysis rather it is a self assessment process.
 Foreign Exchange Net Open Position (NOP) lim- Bank’s ICC Division is responsible for risk identification,
its (Day limit/Overnight limit), deal-wise trigger measurement, monitoring, control, and reporting of
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limits, Stop-loss limit, Profit/Loss in respect of operational risk. Bank strongly follows KYC norms for its
cross currency trading are properly monitored customer dealings and other banking operations. The
and exception reporting is regularly carried out. Internal Control and Compliance Division of the Bank,
The inspection teams of Bangladesh Bank and External
 Holding of equities is monitored regularly so Auditors conduct inspection of different branches and
that the investment remains within the limit as divisions at Head Office of the Bank and submit reports
set by Bangladesh Bank. presenting the findings of the inspections. Necessary
 Asset Liability Management Committee (ALCO) control measures and corrective actions have been
analyzes market and determines strategies to taken on the suggestions or observations made in these
attain business goals. reports.
 Reconciliation of foreign currency transactions. Approach for calculating capital charge for operational
risk:
Quantitative Disclosure BDT Crore
Bank applies ‘Basic Indicator Approach’ for calculating
The capital requirements Solo Consolidated capital charge for operational risk as prescribed by BB
for : in revised RBCA guidelines. Under this approach, banks
have to calculate average annual gross income (GI) of
Interest Rate Risk 1.85 1.85 consecutive last three years and multiply the result by
Equity Position Risk 14.97 16.42 15% (α factor) to determine required capital charge.
Gross Income is the sum of ‘Net Interest Income’, ‘Net
Foreign Exchange Risk 2.21 2.21
non-interest income’ and ‘Interest Suspense’ of a year or
Commodity Risk 0.00 0.00 it is ‘Total Operating Income’ of the bank.
NRBC Bank 145

Quantitative Disclosure: The capital requirement for mulates and reviews strategies, and provides guidance to
operational risk is as follows: manage liquidity risk within the framework laid out in the
BDT Crore ALM Policy. The committee proactively manages liquidity
risk as a part of its ALM activities.
Particulars Solo Consolidated
In order to develop comprehensive liquidity risk manage-
The capital requirement 45.08 45.35 ment framework, the bank has a Liquidity Contingency
for operational risk Plan (LCP). A set of policies and procedures that serves
ix. Liquidity Ratio and Risk: as a blueprint for the bank to meet its funding needs in
a timely manner and at a reasonable cost. In this sense,
Liquidity ratios are a class of financial metrics used to
LCP is an extension of ongoing liquidity management and
determine a bank’s ability to pay off its short-terms debts
formalizes the objectives of liquidity management by en-
obligations. Liquidity risk is the risk that a bank may
be unable to meet short term financial demands. This suring:
usually occurs due to the inability to convert a security or a) Maintenance of reasonable amount of liquid assets.
hard asset to cash without a loss of capital and/or income b) Measurement and projection of funding require-
in the process.
ments and
Views of BOD on system to reduce Liquidity risk: c) Management of access to funding sources.
The Board Risk Management Committee regularly Quantitative Disclosure:
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observe the key liquidity risk indicator i.e. Volatile
liability dependency ratio, Liquidity Coverage Ratio (LCR), Particulars BDT Crore
medium term funding ratio, and Net stable funding ratio Liquidity Coverage Ratio (LCR) 148.83%
and provide their valuable opinion.
Net Stable Funding Raito (NSFR) 113.80%
Methods used to measure Liquidity risk: c Stock of High quality liquid assets 1021.04
The stress test for liquidity risk evaluates the resilience Total net cash outflow over the next 30 686.04
of the banks towards the fall in liquid liabilities. The ratio days calendar
d.
“liquid assets to liquid liabilities” is calculated before
and after the application of shocks by dividing the liquid Available amount of stable funding 5579.74
assets with liquid liabilities. Liquid assets are the assets Required amount of stable funding 4903.20
that are easily turned into cash without the threat of
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loss. They include cash, balances with Bangladesh Bank x. Leverage Ratio:
and balances with banks, call money lending, lending As an additional safeguard against model risk, and
under repo and investment in government securities. measurement error by supplementing the risk based
Liquid liabilities include the deposits and the borrowings. measure, a non risk based regulatory leverage ratio
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Appropriate shocks will have to be absorbed to the liquid has been introduced with a simple, transparent and
liabilities if the current liquidity position falls at the rate independent measurement of risk.
of 10%, 20% and 30% respectively.
Views of BOD on system to reduce excessive leverage:
Liquidity risk Management System:
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Excessive leverage by banks is widely believed to have

The ALCO of the NRBC Bank regularly monitors the
driving factors of liquidity risk called Regulatory liquidity contributed to the global financial crisis. Thus Basel III
indicators (RLIs). These factors are measures form the rules have introduced leverage ratio as a non risk based
following aspects. capital requirements. Board of Directors of our Bank
continuously monitoring the exposure limit of lending,
 Cash Reserve Requirement (CRR)
capital strength of our Bank in order to avoid building-up
 Statutory Liquidity Ratio (SLR) excessive on and off-balance sheet leverage.
 Maximum Cumulative Outflow (MCO) Approach for calculating exposure:
 Advance Deposit Ratio (ADR) According to instruction of supervisory body, the bank is
 Liquidity Coverage Ratio (LCR) calculating leverage ratio and submitted the same to BB
on quarterly basis.
 Net Stable Funding Raito (NSFR)
Quantitative Disclosure BDT Crore
Policies and process for mitigating liquidity risk:
NRBCB manages liquidity risk in accordance with its ALM Particulars Solo consolidated
Policy. This policy is framed as per the regulatory guide-
Leverage Ratio (Required 9.48% 9.53%
lines, and is approved by the Board of Directors. The ALM 3%)
Policy is reviewed periodically to incorporate changes
as required by regulatory stipulation or to realign with On Balance sheet Exposure 6633.81 6641.91
changes in the economic landscape. NRBCB’s ALCO for-

Off Balance Sheet 544.33 544.33  Disciplinary Action (at the discretion of enquiry
Exposure committee)
Total Exposure after 7152.36 7160.46  Resignation of the employee prior to the pay-
Regulatory adjustment ment date.
xi. Remuneration: Particulars BDT Crore
The bodies that oversee remuneration Number of meetings held by the main
The bank has a Board approved payroll/remuneration body overseeing remuneration during
policy which is incorporated in HR policy. The bank doesn’t the financial year and remuneration paid
have any individual Committee/bodies that overseeing to its member.
the remuneration. MANCOM with the concern of Board Number of employees having received a
will monitor the issue on required basis. The bank has variable remuneration award during the
approved rewarding policy for the performing employees.
financial year.
Financial benefits may be granted to an employee by the
Board or any other authority empowered by the Board Number and total amount of guaranteed
for meritorious service. An award in cash or in kind may (festival) bonuses awarded during the fi- 6.08
be granted to an employee by the Board or any other nancial year.
authority empowered by the Board for the outstanding
Number and total amount of sign-on
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academic and professional achievements.
awards made during the financial year.
Design and Structure of Remuneration:
Number and total amount of severance
The Structure of remuneration arrangements for all payments made during the financial year
employees consists of following components: c Total amount of outstanding deferred
 Fixed Remuneration; and remuneration, split into cash, shares
 Variable pay and share-linked instruments and other
d.
forms.
The fixed remuneration is made up of base remuneration
Total amount of deferred remuneration
and superannuation. Base remuneration includes salary
and allowances paid in cash. Superannuation is paid to paid out in the financial year.
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the employee at the time of retirement. Breakdown of amount of remuneration

Variable pay consists of incentive bonuses award to awards for the financial year to show:
most of the banks employee which are discretionary and fixed and variable, deferred and non-de-
6.65
recognize annual performance over the financial year. ferred, different forms used (cash,
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shares and share linked instruments,

In case of following situation remuneration can be other forms).
adjusted before vesting:
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NRBC Bank 147

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NRBC CSR Activities

Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) movement has and enhance environment, ecological balance and natural
gathered great momentum over the past number of years resources and improve sanitation and hygiene.
and is now regarded as the most prevalent issue. CSR is
presently one of the most discussed topics by government,
by non-government and by business itself. In keeping
with global movement, CSR is being considered as the
source of new competition edge for the banking sectors
of Bangladesh. Commercial banks of Bangladesh practices
CSR not only to improve community relations but also as
source of significant commercial benefit.
Corporate social responsibility (CSR) is the corporate initiative

to assess and take responsibility for the company’s effects
on the environment and impact on social welfare. The term
generally applies to company efforts that go beyond what Hon’ble NRBC Chairman Mr. S M Parvez Tamal & Vice Chairman
may be required by regulators or environmental protection Mr. Mr. Mohammad Shahid Islam MP handed over Cheque to
groups. Corporate social responsibility may also be referred Hon’ble Prime Minister as donation to Prime Minister Relief Fund
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to as “corporate citizenship” and can involve incurring to help the destitute people of the country.
short-term costs that do not provide an immediate financial
benefit to the company, but instead promote positive social Investment in education is paramount importance to
and environmental change. enable the progress of a country. Therefore, significant
contributions are being made towards imparting quality
Companies have a lot of activities in the community and in education to the bright young men and women of our
c
the national economy. They control a lot of assets, and may
have billions in cash at their disposal for socially conscious
society. NRBC Bank has made donation to Bangladesh
University of Professionals for educational enhancement
d.
investments and programs. Some companies may engage program, Satbaria Oli Ahmed College for infrastructural
in “green washing”, or feigning interest in corporate development of the School and Patna High School to
responsibility, but many large corporations are devoting real provide scholarship to underprivileged students of the
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time and money to environmental sustainability programs, school. We also donate some underprivileged students to
alternative energy and various social welfare initiatives to continuing their studies.
benefit employees, customer, and community at large.
Being a responsible corporate citizen NRBC Bank is fully

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aware of its responsibilities towards the society as a whole.

NRBC Bank is fully aware of how its operational activities
impact its stakeholders, the economy, the society, its staff
and the environment. NRBC Bank focuses on Conducting
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business in an ethical way, creating opportunities for

business and economic development, empowering
people to fulfill their aspirations, ensuring protection of
environment while financing businesses and supporting the
distressed people of the society. NRBC Bank has established Hon’ble NRBC Chairman Mr. S M Parvez Tamal handed over
CSR policies keeping these above mentioned factors in for “Archive 71- Liberation War and Pre Liberation Movement
mind. documents and images” to Hon’ble NBR Chairman Mr. Mosharraf
Hossain Bhuiyan, NDC & Senior Secretary of IRD.
The bank’s CSR policy has been framed in accordance
with guideline provided by Bangladesh Bank. The policy Developing community’s means investing in people and
shall be applied to all CSR programs/activities undertaken/ their hopes and dreams for the future. NRBC Bank believes
sponsored by the Bank or executed through any other that, going ahead is not possible having a large number of
Trust/Society of implementation partner or any other fund people lagging behind. So, from its inception NRBC Bank
set up by the Government. NRBC Bank Board of Directors is very much aware of its responsibilities towards the
has always supported and encouraged participation in development of underprivileged people and bringing them
CSR programs. The primary objective of NRBC Bank CSR to the mainstream. NRBC Bank has made contributions
policy is to make a meaningful and measurable impact in towards the community development. We donated to the
the lives of economically, physically and socially challenged Prime Minister’s Relief & welfare fund for help the deprived
communities of the country though an integrated approach people of the country. NRBC Bank donates blankets to Prime
of development which focuses on crating sustainable Minister’s Relief fund for help the cold affected People of
livelihood, promoting education and skill development. The the country. NRBC Bank also extended their helping hands
bank shall also promote initiatives that preserve, restore by distributing blankets to the poor people through its own
networks.

NRBC Bank always believes that humanity is the utmost it is growing day by day. Countries of developed economy
priority of all activities. In this regards, we have provided have taken the idea of “Social Responsibility” with that of
financial assistance to different people for treatment of “Achieving Highest Profit.” Through CSR activities corporate
Chronic Diseases such as Cancer, Hepatitis-B virus, Enlarged organizations can carry out social and philanthropic
Thyroid Gland Treatment, Heart diseases etc. activities for furthering equitable and sustainable social
development. NRBC Bank Limited is very much committed
NRBC Bank has always extended its hand whenever there is to its responsibilities towards the society and will always be
a chance to promote our history, struggle and liberation war devoted to perform those.
to the world. NRBC Bank has provided donation through
NBR to Archive 71, an organization to collect all records On eve of film show ceremony “Archive 71- Liberation War
regarding our Liberation War and Pre Liberation Movement and Pre Liberation Movement documents.
documents, images, visual documentaries of 1971. From
NRBC Bank assistance Archive 71 collect a documentary
film “Joi! Bangla” directed by Oscar Winner Japanese film
director Nagisa Oshima based on the Genocide occurred in
Bangladesh in the liberation war on 1971. The documentary
showed the valiant struggle of our freedom fighters and the
sacrifice of the people of our country during and before the
liberation war.
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With industrialization, the impacts of business on society and
the environment assumed an entirely new dimension. For Hon’ble NBR Chairman Mr. Mosharraf Hossain Bhuiyan, NDC,
this, Corporate Social Responsibility has become a criterion Hon’ble NRBC Chairman Mr. S M Parvez Tamal and Vice Chancellor
Mr. Mizanur Rahman among others Present on the Occasion.
of socially lawful business endeavor and the acceptance of
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NRBC Bank 151

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Human Capital
Human Capital- the Key to brilliant act
Human Resource • Reward & recognition program to meet employees’

critical psychological need for appreciation.
NRBC Bank Limited always considers quality and skilled
human resources as the single most valued asset for the • Address grievances and provide counseling.
Bank to achieve organizational objectives and goals. As a
strategic partner, Human Resources Division endeavors Engage the finest people
and makes extensive efforts in developing human We are constantly seeking to attract talented young
resource plans that are aligned to the Bank’s long term people to our Bank. To ensure long term sustainability,
corporate goals and vision. The most dedicated and NRBC Bank has a special focus on skill and merit based
highly professional pools of workforce of NRBC Bank are recruitment and selection process, highly competitive
the most key driver of bank’s performance. Our efficient remuneration package, adequate training and
work force acts as the fundamental pillar for the Bank to development programs, career growth with succession
reach the new height of success and always committed planning, high-performance culture and pleasant working
to maximizing wealth of the bank. Our employee atmosphere. NRBC Bank brings people from different
commitment, qualifications and loyalty toward the bank academic backgrounds which act as a source of creativity.
give us a strong competitive edge. So we continuously Since inception of the Bank, fresh candidates with good
develop and expand the skills and knowledge of our academic background and experienced candidates with
employees. a good track record have been recruited in all levels of
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the Bank every year for rendering best possible services
HR Vision to its customers. In the year 2018 we have recruited 201
To strengthen the team spirit NRBC Bank’s HR Division has candidates (including 111 in experienced and 90 in fresher
set its own vision that is one of the best managed, most category). Moreover, we have recruited 144 ADC Tellers
productive and cost efficient workforce among local banks
c and 42 Marketing Associates.
in Bangladesh. Human Resources Division of NRBC Bank
is working relentlessly help unlock and maximize the true NRBC Team at a glance
potential of our human capital and giving relentless effort
d.
Particulars 2017 2018
to align our people towards the Bank’s vision of success,
connect people’s daily performance to the Bank’s Number of Employees 617 970
strategy and build a culture of empowerment. a. Executive 62 91
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Focus on Long term Sustainability b. Non-Executive 553 677

NRBC Bank has a special focus on skill and merit based Support Staff & Driver 12 16
recruitment and selection process, highly competitive Marketing Associates -- 42
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remuneration package, adequate training and (Contractual)

development programs, career growth with succession
planning, high-performance culture and pleasant working ADC Teller (Cash) -- 144
atmosphere where employees are able to escalate their Female Representation 116 209
grievance and receive counseling. Following are highlights
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Male Representation 501 761

by which human resources are nourished and career
progressions are ensured: Employee turnover rate 5.51% 5.15%
• Recruitment and selection process is followed by Work Environment
clearly defined policy, procedures with ‘best-fit’ We believe that employee satisfaction drives them to
ethos and meritocracy. better perform, so that the Bank provides them every
• Adequate learning & development opportunities facility it can. HR policy laid emphasis on the employees’
through effectively designed training programs benefits, as employees are the valuable assets and the
and on-the-job experience. Bank intends to make them more valuable, providing
them sufficient pecuniary benefits, nurturing their
• Well-crafted compensation & benefits package knowledge as well. Good work environment is conducive
to have a positive impact on employees’ overall to perform better and accordingly, NRBC Bank offers a
wellbeing. quality work environment. In order to achieve the annual
• Ensuring horizontal and vertical career growth. objective of the Bank, Human Resource Division has
been working as one of the strategic partners of the
• Succession planning for the talents in different Bank to retain its talented Resources. A good number
layers of the organizational hierarchy. of welfare programs have been aimed in order to ensure
• Comprehensive performance management wellbeing of the employees, safety standards, working
program to reward employees and drive further environment among the others to create economic value
development. of the employees who are serving the Bank.

Training and Development • Effective instructional and practical method for
learning retention.
Knowledge and skill development is a continuous process,
which is enriched by proper training. NRBC Bank has a In the year 2018, different types of trainings & workshops
strong focus on imparting training towards enhancement held which covers the regulatory obliged areas like
of the skills and competencies of the employees to take Prevention of Money Laundering & terrorist Financing,
over the challenge of modern banking as there is no Integrated Supervision System, Cyber Security Awareness,
alternative to training for the development of human Precaution in Foreign Exchange Operations, SBS Reporting,
resources. The Bank has established ‘NRBC Bank Training ISS Reporting etc. as well as other mandatory banking
Institute’ in 2005 which is the flagship learning center operational trainings including Foundation courses over
where human resources of the bank are trained for the year.
developing their skills, knowledge and abilities (SKAs) for
achieving the cherished dream of the Bank. To achieve this Training-2018 at a Glance
goal, the Institute designs training calendar considering Number of Training (Internal) 13
regulatory compliance requirements and new banking
innovation. The Training Institute also goes through a Number of Trainings (External) 29
complete Training Needs Assessment (TNA) Process. Number of Trainings (Foreign) 07
The development of Human Capital essentially demands
training throughout the year. Total Trainings held during 2018 49
Number of Participants (Internal) 937
To nourish the quality of the talent pool recruited in the
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different segments, NRBC Bank arranges a wide range of Number of Participants (External) 49
in-house, local and international trainings provided by Number of Participants (Foreign) 09
prominent national & international Experts in Banking
& Finance as well as our experienced & skilled in-house Total Participants 995
resources. c One Bank - One Family
Our Bank fosters and nurtures the concept of “A Bank
–A Family” since its inception and endeavor continues
d.
to create a professional work culture that amplifies Staff
motivation and influence the quality of work-life. Since the
Bank’s mission is to make it “The Best Place to Work”, the
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inter-personal integration among the employees is very

much important by creating a congenial, healthy, caring
and productive environment for all levels of employees.
Two-way communication is always appreciated here and
this positive interaction between higher Management and
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all the employees is evident in NRBC Bank’s remarkable

growth and success stepping towards every year.
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A partial view of Training session on-`Prevention of Money

Laundering and Financing on Terrorism’
In a variety of categories we have provided training

as under
• Orientation Program
• Foundation Training Program
• Job Specific Training Program
• Need based Local/Foreign Training
Our Strategic Objective for Training
• Assess training needs for individuals and teams in
similar functions.
• Provide continuous Learning and Development
opportunities for all the employees of the Bank.
• Capture training based on proficient framework.
• Focus on the development of the employees to
bring out the persons’ insider instinct into light.
NRBC Bank 155

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NRBCBank’s Alternative Delivery Channel

and Financial Inclusion
NRBCBank’s Alternative Delivery Channel
A new way to reach unbanked people
Banking
Booth
BRTA Agent
Collection Banking
Booth
NRBCBank
ADC Channel
Photo : Inauguration of NRBC Donia Banking booth

Land
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BPC Bill Registration 2. NRBC BRTA Collection Booth
Collection Fee Collection
(upcoming) (upcoming) NRBCBank is the only new generation Bank, which is
collecting huge Government Revenue through its branches,
Agent Points and BRTA Booths all over Bangladesh.
NRBCBank is the sole partner of CNS Limited (Computer
1. NRBC Banking Booth
2. NRBC BRTA Collection Booth
c Network Systems Limited) to collect BRTA revenue from
65 BRTA Offices of Bangladesh. BRTA authority has given
d.
permission to establish collection booths in every BRTA
3. NRBC Agent Banking offices and collect Fees & Charges from vehicle owners so
that customers can easily get services from BRTA offices
1. NRBC Banking Booth in a short time.
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A milestone of NRBCBank is its full-fledged banking

operation through small Banking Booths. Bangladesh
Bank has approved to establish small size branch of our
bank which will be operated under a mother branch. The
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Banking booth size will be 1000 sq.ft and it will serve all
the banking services to its customers here. A skilled and
efficient employees will be engage for operate the booth.
Only Foreign remittance is prohibited in these booths.
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ATM, vault, locker services, loan facilities and deposit

accounts opening facilities will be served from the booths.
All types of utility bills, BRTA vehicle fees & charges will be
collected here. In some garments oriented areas, these
banking booths will also serve financial literacy to the
workers time to time. Photo: NRBC Gaibandha BRTA Booth inauguration
After getting permissions from Bangladesh Bank,

NRBCBank has started its first Banking Booth at a highly
dense population’s area Donia, Dhaka. Bank wishes to
cover rural/urban area of whole Bangladesh with its
Banking booths.
Photo: NRBC Barishal BRTA Booth inauguration

From June 2018 NRBCBank has started setup BRTA booths Year-2017 Year-2018
in every District’s BRTA Offices or DC Offices /adjacent to
DC Offices. We have 21 BRTA Booths in 18 Districts in Collected Amount Amount (in Amount(in
different BRTA Offices/ DC Offices. Gradually we will cover Crore) Crore)
rest of the Districts. We have also established a special At Branch 356.47 357.75
Corporate Collection booth at Gulshan-1, Silver Tower
for collection of BRTA Fees & Charges from Corporate At Booth 0 430.17
bodies. Now Corporate Customers are feeling very easy Total 356.47 787.92
& comfortable to deposit their huge volume vehicle Fees
& Charges in a comfortable atmosphere. Our expert and
efficient Staffs are collecting daily BRTA Fees & Charges 50,000.00
perfectly.
40,000.00
Before establishing BRTA Booths, our all Branches were
engaged in collection of BRTA Fees & Charges, but when 30,000.00
we start our BRTA Booths on June 2018, the revenue 20,000.00
collection reached double. Our daily BRTA related revenue
collection reached up to 9.00 Crore daily which is around 10,000.00
70 percent of total collection in present market.
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Branch Collection Booth Collection
3.NRBC Agent Banking

Agent Banking is the limited scale banking and financial
c services to the unbanked population through engaged
agents under a valid agency agreement, rather than
d.
a teller/ cashier. An entrepreneur conducts banking
transactions on behalf of a bank. Now a day ADC Banking
become most popular financial services in the world.
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Photo : NRBC BRTA Corporate Collection booth, Gulshan Gradually in all mass populated countries, Banks are
deploying their ADC banking services because it reduces
Below chart shows the growth of BRTA Bills collection of
the operating cost of a Bank. Most of the services of a bank
NRBCBank:
can be provided through agents, thus people of remote
area can easily get Banking facilities at their door steps.
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Year-2017 Year-2018
Number of There are almost 160 million people in Bangladesh but a
Transaction No. of biggest portion remains unbanked especially remote area
No. of Transaction
Transaction people. If these people can be included in the banking
sector, then not only the economy of the country but also
At Branches 4,13,589 4,92,004
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the unbanked people will be benefited from it.

At BRTA Booths 0 5,71,448
Service at Door steps
Total 4,13,589 10,63,452
As a 4th generation bank, NRBC constantly focuses the
changing need and desire of its customers, to develop
new and re-engineered process of service delivery. Along
700,000.00 with some 2nd and 3rd generation bank, NRBCBank also got
600,000.00 approval to start Agent Banking Operation by engaging
Master Agents/unit-Agents throughout the country. The
500,000.00 operation of Agent Banking started with real time basis
400,000.00 having effect at Core Banking Software instantly. Our
Agent Banking Software vendor “Celloscope Limited” and
300,000.00 CBS vendor “Leads Corporation Limited” worked jointly to
200,000.00 integrate CBS and Agent Banking software from February
2015. We have started our Agent Banking journey as pilot
100,000.00 project from July 2015 and we have officially launched
Year-2017 Year-2018
Agent Banking operation from 17th December 2015. The
At Branches At BRTA Booths goal was to serve mass people to their door steps.
Amount collected in the year 2017 & 2018:
NRBC Bank 159

NRBC Agent Banking: At a glance (as on 31 • Receiving Utility Bills like, WASA, REB, DPDC Prepaid
December 2018) Meter Card Recharge/Sell.
The services which are restricted by Central Bank
No. of Agent 3
•Conducting money changing activities
No. of Sub Agent 563
•Dealing loan/ financial appraisal
No. of Account 41,111
•Encashment of cheques.
No. of Transaction 81,085
•Guarantee issue
Transaction Amount 204,423,869.16
No. of IFR Transaction 157 Our Goal
IFR Transaction Amount 4,668,473.69 We would bring un-bank people within banking services
who are living beyond banking network. Specially, farmers,
No. of Electricity Bill 176,462
fishermen, garment workers and other low income people
No. of Electricity Bill Amount 87,882,353.00 of Bangladesh from rural / remote areas are still remaining
No. of Safetynet Beneficiaries as on unbanked will be covered by NRBCBank Agent network.
28,672 We are hopeful that by year 2020, we can reach numerous
31 Dec 2018
Safetynet fund Disbursement Amount farmers and other professionals of rural area through our
69,068,300.00 Agent Banking services. We believe, inclusion of these
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as on 31 Dec 2018
unbanked people to banking services will benefit them
EGPP Beneficiaries as on 31 Dec 2018 3854 in numerous ways as well as enhance financial activities
EGPP Fund Disbursement Amount as of macro economy of the country and its accumulated
54,240,000.00
on 31 Dec 2018 outcome will expedite a sustainable growth of Bangladesh
economy.
New Age of Agent Banking
Digitalized real time Agent Banking services already
c NRBC Agent Banking Network with A2i
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changed the whole banking scenario. The low income & Network of Agent banking spread out rural areas all over
un-banked people (in both rural/Urban areas) are getting the country. NRBC is not behind such endeavor. NRBC is
banking services throughout the country. NRB families executing agreements with Corporate Institutions for
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are settled mostly in rural areas all over the country. The steady expansion of Agent Banking Operation all over the
Bank giving services to door step for disbursement of country. We are included with A2i (Access to information
their Remittance, Government Safetynet Program Funds program, a project of the Government of Bangladesh
through our agents. NRBCBank’s Agents are also collecting under Prime Ministers Office) with their vision to digitize
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REB electricity bill & other utility bills from door to door. banking sector and to work as our Master Agent under
Agent Banking Operation. A2i have around 5600 Digital
Services giving from NRBC Agent outlets
Information Centers at Union Parishad offices all over
• Opening of Bank’s Savings, Current, SND, FDR & Scheme Bangladesh. These digital centers will act as Unit Agents
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accounts, Students accounts. to connect un-bank people all over the country.
• Receiving of small value cash deposit and cash Safetynet Program under NRBC Bank Agent
withdrawal, facilitating utility bill payments Banking platform
• Serving Inward foreign Remittance distribution, inland Disbursement of Safetynet funds through electronically
Remittance. and proper banking channel, a pilot project, A2i (Access
• Cash disbursement under different programs of the to Information) has linked Social Welfare Department and
Government NRBCBank. Social Welfare Department has selected NRBC
Bank for disbursement of Safetynet funds to Elderly/
• Instant Balance enquiry and issuance of mini bank Widow/ divorced/Disabled people of Naogaon, Sylhet,
statement Barishal & Narsingdi District’s surrounding area. We are
• Collection and processing of documents in relation to opening individual Savings account through NRBC Bank
account opening, loan application, credit and debit card Agent Banking devices. These accounts are operated
application from customers. with thumb impression of the account holder(s) which
were verified by one of the Bank person physically. After
• Facilitating fund transfer by BEFTN and RTGS. successfully verification, the account was activated for
• Cheque collection. transaction. Our Agents are disbursing the safetynet funds
• Other functions like payment of insurance premium, from their Agent Points (UDC’s) and some times at door
sale of crop etc. steps in case of elderly and disabled persons.

EGPP Program under NRBC Bank Agent Banking
platform
The objective of the Employment Generation Program
for the Poorest (EGPP) for Bangladesh is to provide the
short-term employment on community sub-projects to
enable households to better cope with vulnerability, while
strengthening program implementation. A2i (Access to
Information) Prime Minister’s Office has linked Social
Welfare Department and NRBC Bank for disbursement
of EGPP funds through electronically and proper banking
channel. Social Welfare Department has selected NRBC
Bank for disbursement of EGPP funds around 5000
beneficiaries of Usmaninagar-Sylhet, Babuganj- Barishal,
Rangpur & Palash- Narsingdi District’s.
Photo: Agent Point Account opening at rural areas Safetynet Fund disbursement through Telco
partners -Robi Axiata Ltd & Banglalink Retailers
In November 13th November, 2017 Robi Axiata Ltd
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and in November 04th March, 2018 Banglalink Digital
communication Ltd has signed a MoU with NRBC Bank.
NRB Commercial Bank engaged Robi & Banglalink
Retailers for fund disbursement to mass people under
Bangladesh Government’s Safetynet Project as well as
c Regular cash withdrawal and other small scale activities.
They are technically connected with NRBC’s core Banking
d.
platform to make real time transactions through their
biometric devices.
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Inward Foreign Remittance (IFR) distribution from NRBC

Bank Agent Points :
This is an effective delivery channel to distribute
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remittance & other Banking services. NRBC Bank started

its Agent Banking expansions to rural areas of the country
and NRB’s can send their foreign remittance to their
nearest and dearest persons of rural areas instantly. Our
Agents can also deliver the remittance to customer’s door
steps by carrying handy Agent Banking biometric devices.
As the Banking process is running through Biometric
impression, there is no chance of fraudulent activity.
NRBC Bank already disbursed more than 31.77 Lac taka
IFR at rural areas last year.
REB Bill collection from NRBC Bank Agent points
In February 2017, Rural Electrification Board (REB) has
signed a MoU with NRBC Bank for collection of Rural
household and company’s consumed Electric Bills through
our Agent Banking Channel all over the country. They
have also fixed the ceiling of commission which will be
given to our Agents. Here it should be mentioned that our
Bank Agents have already collected 87,882,353.00 taka
electric bills from their Agent Points without any hassle
and easy way.
NRBC Bank 161

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NRBC ICT
d.
com
NRBC ICT Team Never Sleeps
From the inception of banking operation dated on 2ndApril, • Scheduled SMS for Loan Recovery & remind-
2013 NRB Commercial Bank Limited has been started it’s er of Scheme Installment
journey through a full phased centralized online banking
system under a well-equipped structured ICT System. • Digital Marketing
• CIB Collateral Database
Since then ICT Division is giving it’s best effort with utmost
sincerity followed by the proper guideline of Management Besides this, all types of CBS customization task, ICT oper-
with consideration the security and compliance issue. ational support & maintenance task is being provided on
24/7 basis.
Based on that as a fourth generation bank, NRB Commer-
cial Bank Limited adopts the maximum technological ad- The details reports of all activities are described as under:
vantages over the modern banking business arena which
is still on going.
Maintaining a State of the art Website
NRB Commercial Bank Limited is maintaining a world
As a result, NRBC Bank Limited is providing most of the standard state of the art website which is www.nrbcom-
modern technological facility to it’s valuable customer mercialbank.com. The said website is playing an import-
abide by the defined guideline & compliance issues of ant role both for internal & external portal. It is not only
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Bangladesh Bank. ICT division of NRBC Bank is contrib- representing the NRBC Bank’s official web site but also it is
uting here by providing the maximum high-tech support becoming a known to all as a business information portal
in every steps with co-operation and collaboration with also.
others divisions. In many cases ICT division takes the lead-
ership to introduce some technological advantages for it’s
c Implementation of Core Banking Solution (CBS)
client. NRB Commercial Bank Limited is running their banking
business through a renowned centralized Core Banking
d.
Considering all, Overall ICT activities & performance along
with achievements are described as under: Solution (CBS) namely “BankUltimus” provided by coun-
trywide reputed Software company namely Leads Corpo-
• Maintaining a State of the art Website ration Ltd (CMMI Level 5).
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• Implementation of Centralized CBS (Bank Ul- By the co-operation and assistance of related all Divisions;
timus) GB, Loans, Foreign Trade, ATM, BACH, EFT, RTGS, SWIFT,
Remittance, SMS Banking, Treasury, CIB, Reconciliation &
• Automated BACH, EFT & RTGS service
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Settlement, Utility Bill Payment, etc. modules are success-

• Implementation & being operational Tier-iii fully implemented and operational by ICT Division.
Data Center
In this connection, regular customization, upgradation &
• Implementation of Centralized secure Net- new features available tasks both for internal & external
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work Infrastructure customer are going on as regular basis and ICT Division
is performing those tasks in a very effective professional
• SWIFT Service
manner along with within the stipulated time frame.
• Internet Banking Service
Besides this, the daily basis support along with others re-
• CIB Reporting System lated activities of CBS are being successfully done by ICT
• Transaction Alert SMS Service Division.
• Push-Pull Service (SMS Banking) Implementation & being operational Automated

BACH, EFT & RTGS service
• Implementation of Biometrics Auto Time
attendance System ICT Division successfully completed the implementation
task & being operational of Automated BACH, EFT & RTGS
• Centralized Human Resources Management service as per the Bangladesh Bank guideline, compliance
System & within the time defined time frame. In this connection,
• Asset Management System regular customization, upgradation, new features avail-
able tasks & regular operational support services are pro-
• Centralized Dash Board Reporting System viding by ICT Division also.
• Centralized Trouble Ticketing System After being live & operational of BACH, EFT & RTGS service
• Missed Call Alert Service ICT Division successfully completed the automation task

between the BACH software & CBS by the proper guide- ICT Division took necessary steps for implementation &
line & assistance of FAD. launching of this product. Based on that till today NRBC
Internet Banking Service is running very effectively with
So that, the fees & charges, reconciliation & settlement the features of Check Book Requisition, Stop Cheque,
along with report against BACH system is generating in full Statement, Fund Transfer, Credit Card Payment, Top-Up,
automated way. As a result daily BACH operation becomes Utility Bill Payment, Account Open, etc.
faster, errorless & reduce the business man hour on reg-
ular basis. CIB reporting System
Implementation & being operational structured ICT Division has done the effective interfacing of CIB re-
Data Center & DR Site porting system between CBS & Bangladesh Bank CIB soft-
ware for monthly Batch file contribution. On this issue, ICT
ICT Division has successfully completed well-equipped Division takes necessary steps (by the approval of Man-
structured Data Center & DR Site.
agement) to complete the task & process along with oth-
This Data center is still running without any interruption ers relevant perquisite activities. Basically, from the very
on 24/7 basis contains the world standard Cooling System, early stage ICT Division is performing all types of technical
Surveillance System, Fire Suppression System, redundant assistance of CIB cell.
Power system, water & smoke detection system, along
Transaction Alert SMS Service
with all renowned and user friendly monitoring System.
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ICT Division has successfully introduced the Auto SMS no-
Besides this, ICT Division is doing properly maintenance tification & Push-Pull Service. This service becomes pop-
task to keep smooth and uninterrupted operation of Data ular in the shortest time frame and adds a huge value of
Center with effective monitoring by the physical appear- Bank’s reputation. By using this service clients can noti-
ance at everyday including all Govt. Holiday. c fied automatically regarding his transaction whenever any
transaction occurred.
Implementation of Centralized secure Network
Infrastructure
d.
Push-Pull Service (SMS Banking)
NRBC ICT Division has implemented a well-structured ICT Division has successfully introduced the Push-Pull Ser-
Centralized secure Network Infrastructure by using world vice (SMS Banking). This service becomes popular in the
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renowned communication devices. Also, for security pur- shortest time frame and adds a huge value of Bank’s repu-
pose there are world renowned security products are tation. By using this service, customer can check Balance,
using in here. Besides this, world renowned end point get Mini Statement & do the Pin Change through SMS
protection has implemented under a centralized plat- service written by ‘NRBC ACC NO PIN’ & send to ‘26969’.
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form. Basically, by using this centralized secure network

Implementation of Biometrics Auto Time
Infrastructure centralized branch banking operation, ATM
attendance System
Service, Agent Banking Service, e-GP Service, All Utility Bill
Payment, BRTA Fees Collection, Go-AML, Remittance Ser- As per the instruction from Management and guideline of
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vice etc. all services of NRBC are successfully running and HRD, ICT Division has successfully installed & implement-
operational. ed the centralized Finger Thumb base Auto Time atten-
dance System in Head Office & all branches. This system
SWIFT Service is perfectly running and operational for effective atten-
As per the guideline of SWIFT; ICT Division complete all dance of employee by measuring the respective thumb
the necessary tasks according to Bank requirements to impression of each employee. After being operational this
become operational the SWIFT. From the very first day of system, ICT Division is providing all types of support re-
SWIFT inauguration ICT Division is providing all the neces- garding the smooth operation of machine and report gen-
sary technical support like server management both live eration along with it’s Database as & when required basis
& backup, Operating System management, take care the with the collaboration of HRD.
net connectivity, Update the SWIFT version, Antivirus, etc.
Implementation of Centralized Human Resources
even in any case of migration issue ICT concerned person-
Management System
nel works with respective Division.
As per the instruction from Management and guideline of
Internet Banking Service HRD, ICT Division has successfully installed & implement-
Since the operation start of Internet Banking dated on ed the centralized Centralized Human Resources Manage-
March 2014 to till today ICT Division is providing all types ment System. This system is perfectly running and oper-
of operational & technical support very efficiently & ef- ational where Leave Management, ACR, PF Calculation,
fectively. Basically, to introduce the Internet Banking ICT different report, Employment history, etc. all are getting
Division made proper planning & design. Afterwards, under a single platform of each employee. After being
NRBC Bank 165

operational this system, ICT Division is providing all types Digital Marketing
of support for smooth operation and report generation
ICT Division is doing Digital Marketing of every product
along with it’s Database as & when required basis with the in very proactive & effective manner. In this connection,
collaboration of HRD. through Facebook Boosting’s, Instagram & Linked in; ICT
Division has already been created a good & effective
Asset Management System digital marketing platform which adds a more value in this
To properly & effectively maintain & manage the fixed as- present digitalized banking arena.
set of Bank; ICT Division implemented Asset Management
System. This Asset Management System is effectively used
CIB Collateral Database
by FAD to count the depreciation value, purchase report, NRBC Bank ICT Division has successfully integrated the CIB
etc. & ICT Division is providing all types of technical sup- Collateral Security Module to report Loan and Advance
port service as per the requirements of FAD. related Collateral Security including Real Estate-Land
Building, Flat and Capital Machinery in a prescribed form
Centralized Dash Board Reporting System to Bangladesh Bank System. Through this database sys-
ICT Division successfully implements the centralized web tem NRBC Bank can do the prepare many types of report
based “Dash Board Reporting System” namely “MIRROR”. which will be very effective both for Bank’s internal & Ban-
In this Dash Board reporting system Deposit, Loans & Ad- gladesh Bank Reporting purpose.
vance, Income, Expenditure, Profit, etc. all are figure out Also, some more important services are going to intro-
in a web based dash Board both in graphical and figure
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duced through ICT division within near future (as the rele-
based reporting. From this dash Board reporting system vant testing tasks are on going). They are:
Top Management can understand the status of Bank’s sce-
nario at a glance like bird’s view both in Branch & Head • Mobile Apps i.e. PLANNET
Office level. Also, ICT Division is working on it to upgrade
as per the Top Management guideline & requirement ba-
c • QR Code based Payment Service
sis. This system makes more transparent & user friendly to
understand the scenario of Bank to the Top Management. • Auto Airtime Recharge Service
d.
Centralized Trouble Ticketing System • Online Tutorial System
ICT Division successfully implements the Centralized Web •. Online Customer Satisfaction Survey System
Based “Trouble Ticketing System”. In this system Bank’s
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employee can raise their all types of ICT Based problem. • Auto Loan Tracking System
So that, concerned ICT officials are informed at once and
take necessary steps with in very shortest possible time. • Auto Loan processing System
As a result, all types of support services are being well
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documented and root cause can be the figure out which • Document Archiving System
is also a requirement of Bangladesh Bank. After introduce
this system since the last Nine (09) months ICT support Above mentioned all activities, performance and achieve-
service becomes very in line and user’s are getting prompt ments are come out after doing a long, continuous and
service. ICT Division is working on it to upgrade as per the restless journey of ICT Division where one & only moto is
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Top Management guideline & requirement basis. focusing on each & every ICT Official. That is:
Missed Call Alert Service “NRBC ICT Team Never Sleeps”

ICT Division successfully introduces the “Missed Call Alert
Service” for NRBC Customer. Through this service custom-
er can get the balance information by giving a miss call to
0961 NRBCBCL or 0961 2672225 through any customer’s
registered mobile number. This service becomes popular
in the shortest time frame and adds a huge value of Bank’s
reputation.
Scheduled SMS for Loan Recovery & reminder of

Scheme Installment
As per the approval & guideline of Management, ICT Divi-
sion has successfully implement the SMS notification for
recovery issue to the concerned person on regular basis
by mentioning the due Date & Installment amount as re-
minder and over due basis. This notification system adds
to Bank’s recovery process a lot which is very helping to
Recovery Division as well as branch & others concerned
Division.

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Green Banking
NRBC Bank towards Green Bank ing
Green banking is a process of promoting environment friendly Financing. As part of that we have already extended
friendly practices by different banking activities. direct / indirect Green Finance to various industries and it
Bangladesh is a most climate change vulnerable country has been growing day by day. NRBC Bank undertook an
in the world and green banking is a tool for acquiring initiative to go green by paying low interest loans to the
reputation. Green bankers are concerned about customers who would like to setup solar equipments, ETP,
sustainable development and it is a special agenda to Brick-field (Zigzag /HHK Tunnel kiln), Green Building ,Bio-
take care of environment of the earth. Green banking gas Plant etc. In the year 2018, we financed 24 customers
is a proactive and effective step with a vision for future in various fields like ETP, Solar Panel, Brick-field (Zigzag /
sustainability. Green banking activities are sustainable HHK Tunnel kiln), Green Building etc. Besides, most of
banking, ethical banking, green money market account, the Textile Industries we financed are equipped with ETP
mobile banking, waste management, remote deposit facilities. In 2018, total disbursement under direct and
and green financing. Green banking focuses on green indirect green finance was Tk.2403.68 million.
transformation of internal operations of all banks.
Tk. in million
Bangladesh falls into the group of most climate change
countries in the world in comparison with other developing Quarters Amount
and developed countries. Bangladesh Bank issued green 1st Quarter 775.57
banking policy guideline to conduct environment friendly
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2 Quarter
nd
576.82
banking activities in the country. According to these
guidelines, all financial institutions and banks need to 3 Quarter
rd
503.56
take effective measures to conduct environment friendly 4 Quarter
th
547.73
banking activities in Bangladesh. Bangladesh Bank issued
a common reporting format to all commercial banks to
c Total 2403.68
report green banking activities in a structured way. Banks
and other financial institutions have to submit a quarterly In-House Green Banking Activities of NRBC Bank
d.
report to Bangladesh Bank on their performance of green Besides financing on green & environment friendly
banking activities. According to green banking policy of projects, NRBC Bank also emphasizes on promoting Green
Bangladesh Bank, banks have to determine vision, mission banking within the bank. Steps taken towards In-House
and strategic planning covering in house green banking
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Green Banking Activities are:

activities like follow green architecture, use energy
saving technologies, reduce dependency on grid power Paper Consumption Management: Internal
and green financing practices like providing green loan communications are done through emails. All staffs
to promote solar energy, bio gas plants, develop green have dedicated email IDs for office use. Customer
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banking products for clients, increase online and mobile communications are being done through emails or SMS.
banking etc. Use of one side used papers for draft copies of the office
assignments has become usual practice in the workplace.
Green Banking Initiatives of NRBC Bank
Water management: The Bank has advised the officials to
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NRBC Bank Limited performs several green banking adopt energy and water efficient practices. The officers
activities like in house environment management, green have been advised to ensure efficient use of gas, fuel,
financing like installation of EFT, Green Building, Brick electricity and water with a view to reducing carbon
Field(Zigzag /HHK Tunnel kiln), establishment of solar emission.
panel, Bio gas plant etc. NRBC Bank also involves in green Power Savings Equipments: Energy saving Bulbs has been
marketing activities to ensure environment friendly already introduced in the offices to minimize electricity
activities like plant tree, finance in environment friendly consumption and environmental impacts.
projects, pay bill via online, be paperless etc. Step taken
regarding green banking are: Online and Internet banking
Green Banking Policy & Sustainable Finance Unit Online banking system is a great way to reduce paper
consumption. All the 68 branches of NRB Commercial
NRBC Bank Limited, from the very beginning, abides by the Bank are providing online banking facilities through its
Green Banking Policy of Bangladesh Bank and introduced core banking system namely “Bank Ultimus”. Fund Transfer
both in-house & external Green activities for supporting to Other bank’s Accounts through BEFTN has been made
the Green Economy. Moreover, NRBC Bank maintains a available through Online Banking for the Customers.
separate “Sustainable Finance Unit’ under Credit Risk
Management Division as per Bangladesh Bank directives. NRBC Bank has offered 24/7 accessible Internet Banking
service. By using real-time internet banking our
Diversification of Credit portfolio customers can avail the services like:
NRBC Bank emphasizes on diversifying its credit portfolio
over various sectors including Green & Environment-

1 Internet
Banking 4 Standing
instruc�on 5 Fund
Transfer 8 U�lity
Bill
Payment
2 Balance
Inquiry 3 Account
Opening 6 Cheque
Book
Requisi�on 7 Statement
Genera�on
Automated Teller Machine (ATM):
We are connected to National Payment Switch which

enables our debit/credit card customers to withdraw
money from any other bank’s ATMs within Bangladesh.
NRBC Bank has used the BACH and BEFTN mechanism
for convenient payment activities which to a great extent
supports the concept of green banking.
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SMS banking:
NRBC Bank offers SMS Banking services to ensure instant

access to ones account information at any time. Any
mobile phone user having account with NRBC Bank can
get the services through the mobile phone. By using SMS
banking our customers can avail the services like:
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d.
Balance Mini Pin
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Inquiry Statement Change
Moreover, NRBC Bank has introduced Missed Call Balance

Inquiry Service for its account holder. Customers who
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register their mobile number with this service at branch

will get the account balance by just giving a miss call
from their registered mobile number to a dedicated
Phone Number. The call made to the above number will
automatically disconnect without deducting any charge.
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Customer will then receive a return SMS having the

account number and current balance of accounts.
NRBC Bank believes that every small ‘GREEN’ step

taken today would go a long way in building a greener
future and that each one of them can work towards to
better global environment. Therefore NRBC Bank has
adopted technology, process and products which result
in substantial reduction of its carbon footprint as well as
develop a sustainable business.
NRBC Bank 169

RESPONSIBILITY STATEMENT OF MD AND CFO
NRB Commercial Bank Limited
Declaration by Managing Director and CFO’s
March 30, 2019
The Board of Directors
114, Motijheel C/A
Dhaka-1000
Sub: Declaration on Financial Statements for the Year Ended on 31 December 2018
Dear Sirs,
Pursuant to the condition No. 1(5)(xxvi) imposed vide the Commission’s Notification No. BSEC/CMRRCD/2006-158/207/
Admin/80 dated June 3, 2018 under section 2CC of the Securities and Exchange Ordinance, 1969, we do hereby declare
that:
1. The Financial Statements of NRB Commercial Bank Limited for the year ended on December 31, 2018, have been
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prepared incompliance with International Accounting Standards (IAS) or International Financial Reporting Standards
(IFRS), as applicable in the Bangladesh and any departure there from has been adequately disclosed;
2. The estimates and judgments related to the Financial Statements were made on a prudent and reasonable basis, in
order for the Financial Statements to reveal a true and fair view;
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3. The form and substance of transactions and the Company’s state of affairs have been reasonably and fairly presented
d.
in its Financial Statements;
4. To ensure above, the Company has taken proper and adequate care in installing a system of internal control and
maintenance of accounting records;
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5. Our internal auditors have conducted periodic audits to provide reasonable assurance that the established policies
and procedures of the Company were consistently followed; and
6. The management’s use of the going concerns basis of accounting in preparing the Financial Statements is appropriate
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and there exists no material uncertainty related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern.
7. There are, to the best of knowledge and belief, no transaction entered into by the bank during the year which are
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fraudulend, illegal or violation of the Bank’s code of conduct.
In this regard, we also certify that:
(i) We have reviewed the Financial Statements for the year ended on December 31, 2018, 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 collectively present true and fair view of the Company’s 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 Company during the year which
are fraudulent, illegal or in violation of the code of conduct for the company’s Board of Directors or its members.
Harunur Rashid Mr. Khondoker Rashed Maqsood

Chief Financial Officer Managing Director & CEO
Place : Dhaka
Dated 30 March 2019

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Auditors’ Report along with

Audited Financial Statements to the Shareholders
NRBC Bank 171

Independent Auditors’ Report
To the Shareholders of
Report on the Audit of the Consolidated and Separate Financial Statements
Opinion
We have audited the Financial Statements of NRBC Bank Limited (“the company”) and it’s subsidiary (the “Group”)
as well as the separate Financial Statements of NRB Commercial Bank Limited (the “Bank”), which comprise the
Consolidated Balance Sheet & the separate Balance Sheet as at 31 December 2018, the consolidated & separate Profit
and Loss Accounts, consolidated & separate Statements of changes in Equity and consolidated & separate statement
of Cash Flows for the period then ended, and notes to the Financial Statements, including a summary of significant
accounting policies and other explanatory information.
In our opinion, the accompanying Financial Statements give true and fair view, in all material respects of the financial
position of the company as at 31 December 2018 and its financial performance and its cash flows for the period then
ended in accordance with International Financial Reporting Standards (IFRS).
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Basis for Opinion
We have conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the company in accordance with the International Ethics Standards Board for Accountants’ Code of
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Ethics for Professional Accountants (IESBA Code) and we have fulfilled our ethical responsibilities in accordance with the IESBA
code. We believe that the audit evidence, we have obtained, is sufficient and appropriate to provide a basis for our opinion.
d.
Other Information
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Management is responsible for the other information. The other information comprises all of the information in the
Annual Report other than the consolidated and separate Financial Statements and our auditors’ report thereon. The
Annual Report is expected to be made available to us after the date of this auditors’ report.
Our opinion on the consolidated and separate Financial Statements does not cover the other information and we do
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not express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements, our responsibility is to read the other information identified
above when it becomes available and, in doing so, consider whether the other information is materially inconsistent
with the Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
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If, based on the work we have performed, on the other information obtained prior to the date of this audit report, we
conclude that there is a material misstatement of this other information; we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Consolidated and
Separate Financial Statements and Internal Controls
Management is responsible for the preparation and fair presentation of the consolidated Financial Statements of the
Group and also separate Financial Statements of the Bank in accordance with IFRSs as explained in note 2.00, and for
such internal control as management determines is necessary to enable the preparation of consolidated and separate
Financial Statements that are free from material misstatement, whether due to fraud or error. The Bank Company
Act, 1991 and the Bangladesh Bank Regulations require the Management to ensure effective internal audit, internal
control and risk management functions of the Bank. The Management is also required to make a self-assessment on the
effectiveness of anti-fraud internal controls and report to Bangladesh Bank on instances of fraud and forgeries.
In preparing the consolidated and separate Financial Statements, management is responsible for assessing the Group’s
and the Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless management either intends to liquidate the Group and the Bank or
to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s and the Bank’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated and Separate Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated and separate Financial Statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these consolidated and separate Financial Statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated and separate Financial Statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
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related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Group’s and the Bank’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in
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the consolidated and separate Financial Statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However,
future events or conditions may cause the Group and the Bank to cease to continue as a going concern.
d.
• Evaluate the overall presentation, structure and content of the consolidated and separate Financial Statements,
including the disclosures, and whether the consolidated and separate Financial Statements represent the
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underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated Financial Statements. We are responsible
for the direction, supervision and performance of the group audit. We remain solely responsible for our audit
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opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
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We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were most
significance in the audit of the consolidated and separate Financial Statements of the current period and are therefore
the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh
the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements

In accordance with the Companies Act, 1994, the Bank Companies Act, 1991 and the rules and regulations issued by
Bangladesh Bank, we also report that:
(i) we have obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purpose of our audit and made due verification thereof;
(ii) to the extent noted during the course of our audit work performed on the basis stated under the Auditor’s
Responsibility section in forming the above opinion on the consolidated Financial Statements and considering
the reports of the Management to Bangladesh Bank on anti-fraud internal controls and instances of fraud
and forgeries as stated under the Management’s Responsibility for the Financial Statements and internal
control:
NRBC Bank 173

(a) internal audit, internal control and risk management arrangements of the Group as disclosed in the
Financial Statements appeared to be materially adequate;
(b) nothing has come to our attention regarding material instances of forgery or irregularity or
administrative error and exception or anything detrimental committed by employees of the Group
and its related entities [other than matters disclosed in these Financial Statements];
(iii) Financial Statements of the Bank’s subsidiaries namely, NRBC Bank Securities Limited have been audited
by Masih Muhith Haque & Co. Chartered Accountants and have been properly reflected in the consolidated
Financial Statements;
(iv) in our opinion, proper books of account as required by law have been kept by the Group and the Bank so
far as it appeared from our examination of those books;
(v) the records and statements submitted by the branches have been properly maintained and consolidated in
the Financial Statements;
(vi) the consolidated balance sheet and consolidated profit and loss account together with the annexed notes
dealt with by the report are in agreement with the books of account and returns;
(vii) the expenditures incurred were for the purpose of the Bank’s business for the year;
(viii) the consolidated Financial Statements have been drawn up in conformity with prevailing rules, regulations
and accounting standards as well as related guidance issued by Bangladesh Bank;
(ix) adequate provisions have been made for advance and other assets which are in our opinion, doubtful of
om
recovery;
(x) the information and explanations required by us have been received and found satisfactory;
(xi) we have reviewed over 80% of the risk weighted assets of the Bank and spent over 3,645 person hours; and
(xii) Capital to Risk-weighted Asset Ratio (CRAR) as required by Bangladesh Bank has been maintained
adequately during the year.
c
d.
ab
Hoque Bhattacharjee Das & Co. MABS & J Partners

Chartered Accountants Chartered Accountants
nk
Cosmic Tower (9th Floor), SMC Tower (7th Floor)

33, Banani Commercial Area
106/Ka Naya Paltan, Box Culvert Road Road # 17, Dhaka 1213
Dhaka- 1000
Tel: +880-2-9821057-8
Phone: +880 2 9355401, Mobile: 0171 336 6656 Website: www.mabsj.com
la
E-mail: info@hbdco.org
Place : Dhaka
Dated 30 March 2019

NRB Commercial Bank Limited & Its Subsidiary
Consolidated Balance Sheet
As at 31 December 2018
At Dec 31, 2018 At Dec 31, 2017
Particulars Notes
Taka Taka
PROPERTY AND ASSETS
Cash: 3a 4,087,776,033 3,942,276,626

In Hand (Including Foreign Currencies) 3.1a 1,175,923,504 834,222,834
Balance with Bangladesh Bank and its agent bank (s) 3.2a 2,911,852,530 3,108,053,792
(including foreign currencies)
Balance with other Banks and Financial Institutions including Foreign 4a 2,568,821,364 1,559,463,234
Currency
In Bangladesh 4.1a 2,424,367,751 1,233,350,895
Outside Bangladesh 4.2a 144,453,613 326,112,339
Money at Call and Short Notice 5a 1,296,500,000 -
om
Investments 6a 8,276,747,100 6,864,132,102
Government 6.1a 6,151,260,960 4,903,782,230
Others 6.2a 2,125,486,140 1,960,349,872
Loans and Advances 7a 48,151,880,309 43,000,279,756

Loans, Cash credits, Overdrafts etc.
Bills purchased and discounted
c 7.2a
8a
46,652,692,885
1,499,187,423
41,561,085,933
1,439,193,823
d.
Fixed Assets including Premises, Furniture and Fixtures 9a 481,956,568 487,228,251
Other assets 10a 2,279,183,504 1,675,974,829
ab
Non - Banking assets - -

Total Assets 67,142,864,878 57,529,354,798
LIABILITIES AND CAPITAL

nk
Liabilities
Borrowings from other Banks, Financial Institutions and Agents 11a 299,272,717 1,280,722,753
Deposits and other accounts 12a 54,085,640,209 45,236,437,765

Current accounts and other accounts, etc. 3,397,346,204 3,025,895,614
la
Bills payable 2,510,922,338 1,879,550,103

Savings Bank deposits 3,693,607,998 2,892,102,268
Special Notice deposits 6,232,070,145 4,487,139,751
Fixed Deposits 15,794,206,953 20,466,604,558
Other Deposits 22,457,486,571 12,475,303,942
Other Liabilities 13a 5,663,641,146 4,601,397,218
Total Liabilities : 60,048,554,072 51,118,557,736
Equity attributable to Shareholders’ of the Parent Company 7,053,640,397 6,368,457,513

Paid -up capital 14 5,145,001,340 4,900,001,460
Statutory reserve 15 1,050,341,869 737,865,685
Revaluation reserve 16a 10,945,329 82,723
Retained earnings 17a 847,351,859 730,507,645
Non-Controlling Interest 17b 40,670,409 42,339,549
Total Equity 7,094,310,806 6,410,797,062
Total Liabilities and Shareholders’ Equity 67,142,864,878 57,529,354,798
NRBC Bank 175

Consolidated Balance Sheet
At Dec 31, 2018 At Dec 31, 2017
Particulars Notes
Taka Taka
OFF - BALANCE SHEET EXPOSURES
Contingent liabilities 18 19,455,251,048 16,591,431,161

Acceptances and endorsements 6,334,904,399 4,576,326,503
Letter of guarantee 5,083,593,069 3,252,602,767
Irrevocable letters of credit 4,627,495,838 5,383,383,733
Bills accepted for collection 3,409,257,742 3,379,118,158
Other contingent liabilities - -
Other commitments
om
Documentary credits and transaction regarding short term trade-related business - -
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 c - -
Total Off-Balance Sheet exposures including contingent liabilities 19,455,251,048 16,591,431,161

d.
Other memorandum items
Value of Travellers cheques - -
ab
Value of savings certificates (Sanchaya patra) & Wage Earners Bonds 213,131,000 210,200,000
These Consolidated Financial Statements should be read in conjunction with annexed notes (1 to 49)
nk
la
Khondoker Rashed Maqsood Mohammed Oliur Rahman Rafikul Islam Mia Arzoo S M Parvez Tamal
Managing Director & CEO Director, BoD Chairman, Audit Committee of BoD Chairman, BoD
Signed as per annexed report on even date
Hoque Bhattacharjee Das & Co. MABS & J Partenrs

Place: Dhaka
Dated: 30 March, 2019

Consolidated Profit and Loss Account
For the year ended 31 December 2018
2018 2017
Particulars Notes
Taka Taka
OPERATING INCOME
Interest income 20a 5,801,721,900 4,717,816,839
Less: Interest paid on deposits and borrowings, etc. 21a 3,643,672,771 3,146,943,116
Net interest income 2,158,049,129 1,570,873,723
Investment income 22a 887,249,960 1,259,203,953

Commission, exchange and brokerage 23a 539,102,531 547,743,237
Other operating income 24a 160,010,456 142,986,478
Total operating Income (A) 3,744,412,076 3,520,807,391
OPERATING EXPENSES
Salary and allowances 25a 1,003,515,679 884,837,509
Rent, taxes, insurance, electricity, etc. 26a 280,850,377 261,340,334
om
Legal expenses 27a 1,860,146 7,849,498
Postage, stamps, telecommunication, etc. 28a 24,316,437 22,107,351
Stationery, Printing, Advertisement, Computer & Software etc. 29a 54,912,172 72,694,907
Chief Executive's salary and Allowance 30 11,739,167 13,849,758
Directors' fees & meeting expenses 31a 15,889,761 19,809,539
Auditors' fees c 32a 448,500 395,000
Charges on loan losses 33 - -
Replacement, Repair and Depreciation of Bank’s Assets 34a 174,321,530 167,714,269
Other expenses 35a 272,400,828 228,287,704
d.
Total Operating expenses (B) 1,840,254,597 1,678,885,869
Profit before provision (C = A-B) 1,904,157,479 1,841,921,522
Provision against Loans and Advances 36a 299,928,612 404,388,285
ab
Provision for diminution in value of investments 37a 39,790,859 3,146,052

Other provisions 38a (5,454,379) 36,564,842
Total provision (D) 334,265,092 444,099,179
Profit before taxation (C-D) 1,569,892,387 1,397,822,344
Provision for taxation 39a 632,240,984 468,883,529
nk
Current tax 39b 738,731,667 652,398,841

Deferred tax 40a (106,490,683) (183,515,311)
Net profit after taxation 937,651,403 928,938,815
Appropriations:
Statutory reserve 312,476,184 275,094,285
la
General reserve - -
Retained earnings carried forward 625,175,219 653,844,530
Non-Controlling Interest 330,860 767,967
Net Profit attributable to the Share Holder of Parent Company 937,320,543 928,170,847
Earnings Per Share (EPS) 41a 1.82 1.89
Hoque Bhattacharjee Das & Co.

MABS & J Partenrs
Place: Dhaka
Dated: 30 March, 2019
NRBC Bank 177

Consolidated Statement of Cash Flows
At Dec 31, 2018 At Dec 31, 2017

Particulars Notes
Taka Taka
A. Cash flows from operating activities
Interest receipts in cash 5,776,487,119 4,733,184,280
Interest paid in cash (2,627,390,674) (3,042,952,221)
Dividend receipts 41,809,678 31,063,565
Fee and commission receipts in cash 541,531,332 555,243,838
Recoveries on loans previously written off - -
Payments to employees (1,036,616,944) (825,251,474)
Payments to suppliers (61,826,154) (77,780,738)
Income taxes paid (524,849,823) (504,859,083)
Receipts from other operating activities 42a 1,014,958,150 1,363,565,476
Payments for other operating activities 43a (631,540,567) (705,511,880)
Operating profit before changes in operating assets & liabilities 2,492,562,116 1,526,701,765
Increase/decrease in operating assets and liabilities
Sale/(Purchase) of Trading Security - -
om
Loans and advances to Other Bank(s) - -
Loans and advances to customers (5,113,405,095) (5,545,803,575)
Other assets 44a 50,976,205 27,212,376
Deposits from other bank(s) 550,000,000 (550,000,000)
Deposits from customers 8,303,100,738 1,613,102,802
Trading liabilities (short-term borrowings) - -
Other liabilities 45a (1,072,484,349) 473,853,065
Net cash from operating activities (A)

c
Net increase/(decrease) in operating liabilities 2,718,187,498
5,210,749,615
(3,981,635,332)
(2,454,933,568)
d.
B. Cash flows from investing activities
(Purchase)/ sale of government securities 46 (1,236,678,624) 332,364,897
(Purchase)/sale of Non-trading Security 526,000,000 308,000,000
(Purcahse)/Sale of Share/Securities (691,136,268) 5,525,757
ab
(Purchase)/ sale of property, plant and equipment (147,745,631) (76,536,863)

Net cash from/(used) in investing activities(B) (1,549,560,523) 569,353,791
C. Cash flows from financing activities
Borrowing from other Bank(s)/ Bangladesh Bank (981,450,036) 517,295,746
Increase/(decrease) in long-term borrowings/ Loan Capital & Debt Capital 36,556,246 -
nk
Receipt from issue of Ordinary Shares (193) (164)

Receipt from issue of Ordinary Shares of Subsidiary's Minority Group - -
Dividend paid (265,000,073) (228,972,039)
Net cash from/(used) in financing activities (C) (1,209,894,056) 288,323,544
D. Net increase/(decrease) in cash and cash equivalents (A+B+C) 2,451,295,036 (1,597,256,233)
la
E. Effects of exchange rate changes on cash and cash equivalents - -

F. Cash and cash equivalents at the beginning of the year 5,502,762,660 7,100,018,893
Cash and cash equivalents at the end of the year [D+E+F]* 7,954,057,696 5,502,762,660
* Cash and cash equivalents at the end of the year:
Cash 3.1a 1,175,923,503 834,222,834
Prize Bonds 6.1 960,300 1,022,800
Money at call and short notice 5a 1,296,500,000 -
Reverse Repo - -
Balance with Bangladesh Bank and its agent bank(s) 3.2a 2,911,852,530 3,108,053,792
Balance with other banks and financial institutions 4a 2,568,821,363 1,559,463,234
7,954,057,696 5,502,762,660
Net Operating Cash Flow Per Share (NOCFPS) 10.13 (5.01)
Khondoker Rashed Maqsood Mohammad Oliur Rahman Rafikul Islam Mia Arzoo S M Parvez Tamal
Place: Dhaka
Dated: 30 March 2019

Consolidated Statement of Changes in Equity
Reserve for Reserve for

Foreign
Assets amortization revaluation Non-
General Currency Retained
Particulars Paid-up capital Statutory reserve revaluation of treasury of treasury Controling Total
reserve translation earnings
reserve securities securities Interest
Gain/(loss)
(HTM) (HFT)
Balance at 01 January 2017 4,900,001,460 737,865,685 - - - 82,723 0.00 42,339,549 730,507,645 6,410,797,061
Adjustment: -
la - - - - - - - - -
i. 5 % Cash Dividend for 2018 - - - - - - - - (265,000,073) (265,000,073)
ii. 7% Stock Dividend for 2018 244,999,880 - - - - - - - (244,999,880) -
iii. Payment of the Fraction of share to (193) (193)
nk
shareholder
Opening Balance after adjustments 5,145,001,340 737,865,685 - - - 82,723 0.00 42,339,549 220,507,499 6,145,796,795
Effects of changes in accounting policy - - - - - - - - - -

Changes in Non-Controlling Interest - - - - - - - - -
ab
Net profit after taxation for the year - - - - - - - - 937,651,403 937,651,403
Transfer to statutory reserve - 312,476,184 - - - - - - -312,476,184 -
Transfer General Reserve to Retained Earnings - - - - - - - - - -
Reserve for HFT Treasury securities - - - - - - 8,779,800 - - 8,779,800
d.
Reserve for HTM securities - - - c - - 2,082,806 - - - 2,082,806
Currency translation difference - - - - - - - - - -
Balance at 31 December 2018 5,145,001,340 1,050,341,869 - - - 2,165,529 8,779,800 42,339,549 845,682,719 7,094,310,804
Balance at 31 December 2017 4,900,001,460 737,865,685 - - - 82,723 0.00 42,339,549 730,507,645 6,410,797,061
om
Place: Dhaka
NRBC Bank
179
Balance Sheet
At Dec 31, 2018 At Dec 31, 2017

Particulars Notes
Taka Taka
PROPERTY AND ASSETS

Cash 3 4,087,745,964 3,942,274,730
In Hand (Including Foreign Currencies) 3.1 1,175,893,435 834,220,938
Balance with Bangladesh Bank and its agent bank (s) (includ- 3.2 2,911,852,530 3,108,053,792
ing foreign currencies)
Balance with other banks and financial institutions including Foreign 4 2,524,684,870 1,550,032,532
Currency
In Bangladesh 2,380,231,257 1,223,920,193
Outside Bangladesh 144,453,613 326,112,339
om
Money at call and short notice 5 1,296,500,000 -
Investments 6 7,941,549,494 6,495,123,607
Government 6,151,260,960 4,903,782,230
Others c 1,790,288,533 1,591,341,377
Loans and advances 7 48,117,783,264 42,960,513,008
Loans, cash credits, overdrafts etc. 7.2 46,618,595,841 41,521,319,185
d.
Bills purchased and discounted 8 1,499,187,423 1,439,193,823
Fixed assets including Premises, Furniture and Fixtures 9 474,853,154 477,921,127
ab
Other assets 10 2,618,741,328 2,017,287,539
Non - Banking assets - -
Total assets 67,061,858,074 57,443,152,542

nk
LIABILITIES AND CAPITAL

Liabilities
Borrowings from other Banks, Financial Institutions and Agents 11 299,272,717 1,280,722,753
la
Deposits and other accounts 12 54,083,280,144 45,226,596,236

Current accounts and other accounts, etc. 3,397,346,204 3,025,895,614
Bills payable 2,510,922,338 1,879,550,103
Savings bank deposits 3,693,607,998 2,892,102,268
Special notice deposits 6,229,710,080 4,487,139,751
Fixed deposits 15,794,206,953 20,466,604,558
Other deposits 22,457,486,571 12,475,303,942
Other Liabilities 13 5,631,698,497 4,588,431,981
Total Liabilities : 60,014,251,357 51,095,750,970
Total Shareholders' Equity/Capital 7,047,606,716 6,347,401,573

Paid -up capital 14 5,145,001,340 4,900,001,460
Statutory reserve 15 1,050,341,869 737,865,685
Revaluation reserve 16 10,945,329 82,723
Retained earnings 17 841,318,178 709,451,705
Total Liabilities and Shareholders' Equity 67,061,858,074 57,443,152,542

Balance Sheet
At Dec 31, 2018 At Dec 31, 2017

Particulars Notes
Taka Taka
OFF - BALANCE SHEET EXPOSURES
Contingent liabilities 18 19,455,251,048 16,591,431,161

Acceptances and endorsements 6,334,904,399 4,576,326,503
Letter of guarantee 5,083,593,069 3,252,602,767
Irrevocable letters of credit 4,627,495,838 5,383,383,733
Bills accepted for collection 3,409,257,742 3,379,118,158
Other commitments
Documentary credits and transaction regarding short term
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trade -related business - -
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 - -
c
Total Off-Balance Sheet exposures including contingent liabilities 19,455,251,048 16,591,431,161
d.
Other Memorandum items
Value of travellers cheques - -
ab
Value of Govt Instruments & Wage Earners Bonds 213,131,000 210,200,000
These Financial Statements should be read in conjunction with annexed notes (1 to 49)
nk
la

Place: Dhaka
NRBC Bank 181

Profit and Loss Account
2018 2017
Particulars Notes
Taka Taka
OPERATING INCOME
Interest income 20 5,792,018,101 4,712,898,016
Less: Interest paid on deposits and borrowings, etc. 21 3,643,918,372 3,147,979,977
Net interest income 2,148,099,729 1,564,918,039
Investment income 22 877,883,061 1,236,357,571

Commission, exchange and brokerage 23 519,597,815 531,244,820
Other operating income 24 158,663,048 142,256,603
Total operating income (A) 3,704,243,653 3,474,777,033
OPERATING EXPENSES
Salary and allowances 25 986,742,567 871,012,914
Rent, taxes, insurance, electricity, etc. 26 274,897,470 255,397,600
om
Legal expenses 27 1,786,836 7,783,558
Postage, stamps, telecommunication, etc. 28 23,406,075 21,353,595
Stationery, Printing, Advertisement, Computer & Software etc. 29 54,473,523 71,554,756
Chief Executive's salary and Allowance 30 11,739,167 13,849,758
Directors' fees & meeting expenses 31 15,777,661 19,405,389
Auditors' fees 32 402,500 345,000
Charges on loan losses
c
Replacement, Repair and Depreciation of Bank’s Assets
33
34 171,767,203
-
165,732,352
-
d.
Other expenses 35 273,993,963 234,512,837
Total operating expenses (B) 1,814,986,965 1,660,947,758
Profit before provision (C = A-B) 1,889,256,688 1,813,829,275
Provision against loans and advances 36 299,928,612 404,388,285
ab
Provision for diminution in value of investments 37 32,401,536 (2,595,275)

Other provisions 38 (5,454,379) 36,564,842
Total provision (D) 326,875,769 438,357,851
Profit before taxation (C-D) 1,562,380,919 1,375,471,423
Provision for taxation 628,038,116 463,181,974
nk
Current tax 39 734,330,756 646,882,155

Deferred tax 40 (106,292,640) (183,700,181)
Net profit after taxation 934,342,803 912,289,449
Appropriations
la
Statutory reserve 312,476,184 275,094,285

General reserve - -
Retained earnings carried forward 621,866,619 637,195,164
Net Profit attributable to the Share Holder 934,342,803 912,289,449
Earnings Per Share (EPS) 41 1.82 1.86

Place: Dhaka

Statement of Cash Flows
At Dec 31, 2018 At Dec 31, 2017
Particulars Notes
Taka Taka
A. Cash flows from Operating Activities
Interest receipts in cash 5,766,783,320 4,728,265,457
Interest paid in cash (2,627,636,275) (3,043,989,081)
Dividend receipts 32,442,779 23,382,226
Fee and commission receipts in cash 519,597,815 531,244,820
Recoveries on loans previously written off - -
Payments to employees (1,020,206,222) (811,311,029)
Payments to suppliers (57,785,631) (70,199,616)
Income taxes paid (516,276,517) (497,639,035)
Receipts from other operating activities 42 1,013,607,292 1,347,651,133
Payments for other operating activities 43 (630,243,020) (703,090,178)
Operating profit before changes in operating Assets & Liabilities 2,480,283,542 1,504,314,696
Increase/decrease in Operating Assets and Liabilities
Sale/(Purcahse) of Trading Security - -
om
Loans and advances to Other Bank(s) - -
Loans and advances to customers (5,082,518,552) (5,506,400,876)
Other assets 44 44,275,622 (1,025,513)
Deposits from other bank(s) 550,000,000 (550,000,000)
Deposits from customers 8,306,683,907 1,557,903,352
Trading liabilities (short-term borrowings) - -
Other liabilities
Net increase/(decrease) in Operating liabilities
c 45 (1,072,484,349)
2,745,956,628
473,853,065
(4,025,669,971)
d.
Net cash from operating activities (A) 5,226,240,170 (2,521,355,275)
B. Cash flows from investing activities
(Purchase)/ sale of government securities 46 (1,236,678,624) 332,364,897
(Purchase)/sale of Non-trading securities 526,000,000 308,000,000
ab
(Purcahse)/Sale of Share/Securities (724,947,156) 21,110,252

(Purchase)/ sale of property, plant and equipment (147,603,015) (70,490,538)
Net cash from/(used) in Investing Activities(B) (1,583,228,795) 590,984,611
C. Cash flows from financing activities
Borrowing from other Bank(s)/ Bangladesh Bank (981,450,036) 517,295,746
nk
Increase/(decrease) in long-term borrowings/ Loan Capital & Debt Capital - -

Receipt from issue of Ordinary Shares/Disbursement of Fraction Share (193) (164)
Dividend paid for 2016 (245,000,073) (228,972,039)
Net cash from/(used) in financing activities (C) (1,226,450,302) 288,323,544
D.Net increase/(decrease) in cash and cash equivalents (A+B+C) 2,416,561,072 (1,642,047,120)
la
E. Effects of exchange rate changes on cash and cash equivalents - -

F. Cash and cash equivalents at the beginning of the year 5,493,330,062 7,135,377,182
Cash and cash equivalents at the end of the year [D+E+F]* 7,909,891,134 5,493,330,062
* Cash and cash equivalents at the end of the year:
Cash 3.1 1,175,893,435 834,220,938
Prize bonds 6.1 960,300 1,022,800
Money at call and short notice 5 1,296,500,000 -
Reverse Repo - -
Balance with Bangladesh Bank and its agent bank(s) 3.2 2,911,852,530 3,108,053,792
Balance with other banks and financial institutions 4 2,524,684,870 1,550,032,532
7,909,891,134 5,493,330,062
Net Operating Cash Flow Per Share (NOCFPS) 10.16 (5.15)
Managing Director (CC) Director, BoD Chairman, Audit Committee of BoD Chairman, BoD
Place: Dhaka Signed as per annexed report on even date
NRBC Bank 183

184
Statement of Changes in Equity
For the year endedw 31 December 2018
Reserve for Reserve for

Foreign
Assets amortization revaluation
Annual Report 2018

Statutory General Currency Retained
Particulars Paid-up capital revaluation of Treasury of Treasury Total
reserve reserve translation earnings
reserve securities securities
Gain/(loss)
(HTM) (HFT)
Balance at 01 January 2018 4,900,001,460 737,865,685 - - - 82,723 - 709,451,705 6,347,401,572
Adjusttment:
i. 5 % Cash Dividend for 2017
la (245,000,073) (245,000,073)
ii. 7% Stock Dividens for 2017 244,999,880 (244,999,880) -
iii. Payment the fraction of share to share (193) (193)
holder
nk
Opeing Balance after adjustments 5,145,001,340 737,865,685 - - - 82,723 - 219,451,559 6,102,401,306
Effects of changes in accounting policy -

ab
Net profit after taxation for the year 934,342,803 934,342,803
Transfer to statutory reserve 312,476,184 (312,476,184) -
Transfer General Reserve to Retained Earnings -
Reserve for HFT treasury securities 8,779,800 8,779,800
d.
Reserve for HTM securities 2,082,806 2,082,806
Currency translation difference
c -
Balance at 31 December 2018 5,145,001,340 1,050,341,869 - - - 2,165,529 8,779,800 841,318,178 7,047,606,716
Balance at 31 December 2017 4,900,001,460 737,865,685 - - - 82,723 - 709,451,705 6,347,401,572

om
Liquidity Statement
Assets and Liability Maturity Analysis
As of 31 December 2018
Maturity Analysis
Particulars Up to 1 month’s 1-3 months’ 3-12 months’ 1-5 years’ Above 5 years’ Total
Maturity Maturity Maturity Maturity Maturity
Assets
Cash in hand 1,175,893,435 - - - - 1,175,893,435
la - 2,874,933,294 2,911,852,530
Balance with Bangladesh Bank and its agent bank (Lcy+Fcy) 36,919,235 - -
Balance with other banks and financial institutions 898,794,614 430,397,421 1,168,292,999 27,199,837 - 2,524,684,870
Money at call and on Short Notice 1,296,500,000 - - - - 1,296,500,000
nk
Investments - 201,657,347.17 1,627,799,535 2,669,855,267 3,442,237,345 7,941,549,494
Loans and advances 9,656,466,651 9,799,918,845 14,323,444,275 7,186,891,560 7,151,061,933 48,117,783,264
Fixed assets including Premises, Furniture and Fxtures - - - - 474,853,154 474,853,154
Other assets 513,428,271 411,936,717 730,524,489 404,707,071 558,144,780 2,618,741,328
ab
Non-banking assets - - - - - -
Total Assets (A) 13,578,002,205 10,843,910,330 17,850,061,298 10,288,653,734 14,501,230,507 67,061,858,074
Liabilities
- (299,272,717)
d.
Borrowings from Bangladesh Bank, other Banks, Financial Institutions and agents c - - (299,272,717) -
Deposits and other accounts (11,127,509,670) (12,581,909,857) (16,125,383,095) (9,771,049,698) (4,477,427,824) (54,083,280,144)
Provisions and other liabilities (459,981,681) (1,019,464,319) (1,043,441,019) (2,955,571,965) (153,239,514) (5,631,698,497)
Total Liabilities (B) (11,587,491,350) (13,601,374,176) (17,468,096,831) (12,726,621,662) (4,630,667,338) (60,014,251,357)
Net Liquidity Gap-Excess/(Shortage) (A-B) 1,990,510,855 (2,757,463,846) 381,964,467 (2,437,967,928) 9,870,563,168 7,047,606,717
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Managing Director(CC) Director, BoD Chairman, Audit Committee of BoD Chairman, BoD
Place: Dhaka
Dated:30 March 2019
NRBC Bank
185
Explanatory Notes to the Financial Statements
For the year ended December 31, 2018
1 Legal Status of the Bank and its principal activities
NRB Commercial Bank Limited (NRBC Bank) having its Registered Office at 114 Motijheel Commercial Area,
Dhaka-1000, Bangladesh, was incorporated (Inc no. C-107535) on February 20, 2013 as a Public Limited
Company under the Companies Act, 1994 (Act No.18 of 1994) and also is governed by the Banking Companies
Act 1991 (Amendment upto 2013) with Authorized Capital of Tk. 10000 million and having initial capital base
of Tk. 4446,06 million (Paid up Capital) by converting the hard earned foreign currency of 53 (Fifty three)
qualified NRBs from business persons, community leaders, scientists, educationists, living in across the globe
which includes USA, Canada, UK, Russia, Italy, Germany, UAE and Kuwait.
NRBC Bank started its journey from 02 April 2013 after getting permission vide memo No. BRPD (P-3)/745(60)/2013-
1189 dated 10 March 2013 as a scheduled Bank. Presently NRBC Bank has 68 Branches in rural and urban area of
Bangladesh and, Bank formed a subsidiary company NRBC Bank Securities Limited in 2016.
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NRBC Bank Securities Limited was formed as subsidiary company after getting approval from Bangladesh Bank
Bank following guidelines of the Bangladesh Securities and Exchange Commission (BSEC). It was incorporated
as company on 20 September 2015 bearing certificate of incorporation no. C-125904/2015 under the
Companies Act 1994. The subsidiary company resumed its Commercial operation on December 12, 2016.
“The Bank through its Branches and non-banking subsidiary provides a diverse range of financial services and
c
products in Bangladesh. The Bank has expanded its capital market operation to cater brokerage business in
the stock market in Bangladesh.
d.
2 Basis of preparation of the Consolidated Financial Statements and Significant accounting policies
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Consolidated Financial Statements and separate Financial Statements of the Bank comprise of Balance Sheet,
Profit and Loss Account, Cash Flow Statement, Statement of Changes in Equity, Liquidity Statement and
relevant notes and disclosures.
The Consolidated Financial Statements of the Bank as at 31 December 2018 have been prepared under the
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historical cost convention except investments categorized under held for trading, and in accordance with
International Financial Reporting Standards (IFRS), the “First Schedule” (section-38) of the Banking Companies
Act 1991, as amended by BRPD circular no. 14 dated 25 June 2003, the rules and regulations issued by
Bangladesh Bank, the Companies Act 1994, the Securities and Exchange Ordinance 1969, Securities and
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Exchange Rules 1987 and other laws and rules applicable for the Bank.
Consolidated Financial Statements and Financial Statements of the Bank have been prepared in accordance
with the measurement and recognition requirements of International Accounting Standards (IAS) and
International Financial Reporting Standards (IFRS) as adopted by the Institute of Chartered Accountants of
Bangladesh.
2.1 Basis of consolidation
Separate set of records for consolidating the Financial Statements of the Branches including NRBC Bank
Securities Limited are maintained at the Head Office of the Bank, based on which these Financial Statements
have been prepared. The consolidated Financial Statements have been prepared in accordance with the IFRS
10 “Consolidated Financial Statements”. The Consolidated Financial Statements have been prepared to a
common reporting period ended on 31 December 2018.
2.2 Statement of compliance
The basis of preparation of Financial Statements of the Bank differs with those of IFRS and, therefore, the
requirements of the Bank Companies Act 1991, and provisions and circulars issued by Bangladesh Bank shall prevail.

As such Bank has departed from those contradictory requirements of BFRS in order to comply with rules and
regulations of Bangladesh Bank which are disclosed below:
i. Investment in shares and securities
IFRS: As per requirements of IAS 39 investment in Shares and Securities generally fall either under “at
fair value through profit and loss account” or under “available for sale” where any change in the fair
value (as measured in accordance with IFRS 13) at the year-end is taken to profit and loss account or
revaluation reserve respectively.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 investments in quoted shares and
unquoted shares are revalued at the year end at market price and as per book value of last audited
balance sheet respectively. Provision should be made for any loss arising from diminution in value of
investment; otherwise investments are recognised at cost.
ii. Revaluation gains/losses on Government securities
IFRS: As per requirement of IAS 39, T-bills and T-bonds fall under the category of “Held for Trading
(HFT)”. Any change in the fair value of held for trading assets is recognised through profit and loss
account. Securities designated as “Held to Maturity (HTM)” are measured at amortised cost method
and interest income is recognised through the profit and loss account.
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Bangladesh Bank: HFT securities are revalued on the basis of mark to market and at year end any gains
on revaluation of securities which have not matured as at the balance sheet date are recognised in
other reserves as a part of equity and any losses on revaluation of securities which have not matured as
at the balance sheet date are charged in the profit and loss account. Interest on HFT securities including
amortisation of discount are recognised in the profit and loss account.
c
HTM securities which have not matured as at the balance sheet date are amortised at the year end and
d.
gains or losses on amortisation are recognised in other reserve as a part of equity.
iii. Provision on loans and advances/investments

ab
IFRS: As per IAS 39 an entity should start the impairment assessment by considering whether objective
evidence of impairment exists for financial assets that are individually significant. For financial assets
that are not individually significant, the assessment can be performed on an individual or collective
(portfolio) basis.
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Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, BRPD circular No. 19 dated
27 December 2012 and BRPD circular no. 05 dated 29 May 2013 a general provision at 0.25% to 5%
under different categories of unclassified loans (good/standard loans) has to be maintained regardless
of objective evidence of impairment. Also provision for sub-standard loans, doubtful loans and bad
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losses has to be provided at 20%, 50% and 100% respectively for loans and advances depending on the
duration of overdue. Again as per BRPD circular no. 10 dated 18 September 2007 and BRPD circular no.
14 dated 23 September 2012 a general provision at 1% is required to be provided for all off-balance
sheet exposures with having some exception. Such provision policies are not specifically in line with
those prescribed by IAS 39.
iv. Other comprehensive income

IFRS: As per IAS 1 Other Comprehensive Income (OCI) is a component of Financial Statements or the
elements of OCI are to be included in a single Other Comprehensive Income statement.
Bangladesh Bank: Bangladesh Bank has issued templates for Financial Statements which are strictly
to be followed by all banks. The templates of Financial Statements issued by Bangladesh Bank do not
include Other Comprehensive Income nor are the elements of Other Comprehensive Income allowed
to be included in a single Other Comprehensive Income (OCI) Statement. As such the Bank does not
prepare the other comprehensive income statement. However, elements of OCI, if any, are shown in
the statements of changes in equity.
v. Financial instruments – presentation and disclosure
In several cases Bangladesh Bank guidelines categorise, recognise, measure and present financial
instruments differ from those prescribed in IAS 39. As such cases, full disclosure and presentation
requirements of IFRS 7 and IAS 32 cannot be made in the Financial Statements.
NRBC Bank 187

vi. Financial guarantees
IFRS: As per IAS 39, financial guarantees are contracts which require an entity to make specified payments
to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due
in accordance with the terms of a debt instrument. Financial guarantee liabilities are recognised initially
at their fair value, and the initial fair value is amortised over the life of the financial guarantee. The
financial guarantee liability is subsequently carried at the higher of this amortised amount and the
present value of any expected payment when a payment under the guarantee has become probable.
Financial guarantees are included within other liabilities.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, financial guarantees such as letter
of credit, letter of guarantee are to be treated as off-balance sheet items. No liability is recognised for
the guarantee this except the cash margin.
vii. Cash and cash equivalents
IFRS: Cash and cash equivalent items should be reported as cash item as per IAS 7.
Bangladesh Bank: Some cash and cash equivalent items such as ‘money at call and short notice’,
treasury bills, Bangladesh Bank bills and prize bonds are not prescribed to be shown as cash and cash
equivalents. Money at call and short notice are presented on the face of the balance sheet, and treasury
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bills, prize bonds are shown in investments. However, in the cash flow statement, money at call and
short notice and prize bonds are shown as cash and cash equivalents besides cash in hand, balance with
Bangladesh Bank and other banks.
viii. Non-banking asset c
BFRS: No indication of Non-banking asset is found in any IFRS.
Bangladesh Bank: As per BRPD circular no. 14, dated 25 June 2003 there must exist a face item named
d.
Non-banking asset.
ix. Cash flow statement
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IFRS: The Cash flow statement can be prepared using either the direct method or the indirect method.
The presentation is selected to present these cash flows in a manner that is most appropriate for the
business or industry. The method selected is ‘applied consistently’.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, cash flow is the mixture of direct
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and indirect methods.

x. Balance with Bangladesh Bank: (Cash Reserve Requirement)
IFRS: Balance with Bangladesh Bank should be treated as other assets as it is not available for use in day
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to day operations as per IAS 7.

Bangladesh Bank: Balance with Bangladesh Bank is treated as cash and cash equivalents.
xi. Presentation of intangible asset
IFRS: An intangible asset must be identified and recognised, and the disclosure must be given as per
IAS 38.
Bangladesh Bank: There is no regulation for intangible assets in BRPD circular no. 14 dated 25 June
2003
xii. Off-balance sheet items
IFRS: There is no concept of off-balance sheet items in any IFRS; hence there is no requirement for
disclosure of off-balance sheet items on the face of the balance sheet.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, off balance sheet items (e.g. Letter
of credit, Letter of guarantee etc.) must be disclosed separately on the face of the balance sheet.
xiii. Disclosure of appropriation of profit
IFRS: There is no requirement to show appropriation of profit in the face of statement of comprehensive
income

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, an appropriation of profit should be
disclosed on the face of Profit and Loss Account.
xiv. Loans and Advances/Investments net of provision
IFRS: Loans and advances/Investments should be presented net of provision.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, provision on loans and advances/
investments are presented separately as liability and did not net off against loans and advances.
Also refer to the Note 2.18 Compliance of International Accounting Standards (IASs) and International
Financial Reporting Standards (IFRSs)
2.3 Functional and Presentational Currency
Financial Statements of the Bank have been presented in Taka, which is the Bank’s functional and
presentational currency.
2.4 Materiality, Aggregation and Offsetting
The Bank aggregates each material class of similar items and separately which are dissimilar in nature or
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function unless those are immaterial. The Bank did not offset assets and liabilities or income and expense,
unless required or permitted by IAS/ IFRS.
2.5 Basis of measurement
The financial statements have been prepared on the historical cost basis except for the following material items:
c
- Government Treasury Bills and Bonds designated as ‘Held for Trading (HFT)’ at present value using mark
to market concept with gain credited to revaluation reserve but loss charged to Profit and Loss Account.
d.
- Government Treasury Bills and Bonds designated as ‘Held to Maturity (HTM)’ at present value using
amortization concept.
- Investments in Share and Securities are quoted at market price.
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- Zero Coupon Bond at present value using amortization concept.

2.6 Use of Estimates and Judgments
The preparation of Financial Statements of the Bank required for management to make judgments, for
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estimation and assumptions that affected the application of accounting policies. The said reported amounts
effects on Assets, Liabilities and Income & Expenses. Actual results may differ from these estimation.
Estimates and underlying assumptions have been reviewed ongoing basis. Revisions of accounting estimates
have been recognised in the period in which the estimates have been revised and in the future periods
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affected, if applicable.
Key estimates includes the following:
- Loan loss provision
- Deferred Tax Assets/Liabilities
- Provision for other operating expenses
2.7 Foreign Currency Transactions
Foreign Currency Translation

Foreign currency transactions have been converted into equivalent Taka currency at the ruling exchange
rates on the respective date of such transactions as per BAS 21 “The Effects of Changes in Foreign Exchange
Rates” and “balances with other banks and financial institutions” have been converted as per directives of
Bangladesh Bank vide circular no. BRPD (R) 717/2004-959 dated 21 November 2004.
Differences arising through buying and selling transactions of foreign currencies on different dates of the year
have been adjusted by debiting /crediting exchange gain or loss account.
Translation Gain and Losses

Gains or losses arising out of translation of foreign exchange have been included in the Profit and Loss
account.
NRBC Bank 189

2.8 Cash Flow Statement
Cash Flow Statement is prepared principally in accordance with BAS 7 “Cash Flow Statement” under direct
method as per the guidelines of BRPD circular no. 14 dated 25 June 2003. The Cash Flow Statement shows
the structure of changes in cash and cash equivalents during the year. Cash flows during the period have
been classified as operating activities, investing activities and financing activities.
2.9 Statement of Changes in Equity
Statement of Changes in Equity has been prepared in accordance with IAS 1 “Presentation of Financial
Statements” and following the guidelines of Bangladesh Bank BRPD circular no. 14 dated 25 June 2003.
2.10 Liquidity Statement
The liquidity statement has been prepared in accordance with remaining maturity grouping of Assets and
Liabilities as at the close of the year as per following bases:
Particulars Basis of use

Cash, Balance with other banks and financial Maturity/behavioral trend.
institutions, money at call and short notice etc.
Investments Residual maturity term.
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Loans and advances Repayment/maturity schedule and behavioral trend
(non-maturity products).
Fixed assets Useful life.
Other assets Realization/amortization basis.
Borrowing from other banks, financial Maturity/ repayment terms.
institutions and agents
c
d.
Deposits and others accounts Maturity and behavioral trend (non-maturity products).
Other long term liability Maturity term.
Provisions and Other liabilities Settlement/adjustment schedule basis.
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2.11 Significant Accounting Policies

The accounting policies set out below have been applied consistently to all periods presented in these
financial statements, and have been applied consistently except otherwise instructed by the Central Bank
as prime regulator Certain comparative amounts in the financial statements have been reclassified and
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rearranged to conform to the current year’s presentation.

A Assets and basis of their valuation
i. Cash and cash equivalents
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Cash and cash equivalents include notes and coins in hand and at ATM, unrestricted balances held with
Bangladesh Bank and its agent bank, balance with other banks and financial institutions, money at call and
short notice and prize bond which are not ordinarily susceptible to change in value.
Cash equivalents are short term, highly liquid investments that are readily convertible into known amounts
of cash and which are subject to an insignificant risk of changes in value.
ii. Investments
Investments have been initially recognised at cost, including acquisition charges associated with the
investment. Government Treasury Bills and Bonds (categorized as HFT or/and HTM) are accounted for as
per Bangladesh Bank DOS circular letter no. 05 dated 26 May 2008 and DOS circular no. 05 dated 28 January
2009.
The valuation methods of investment used are:
Held to Maturity (HTM)
Investments which are intended to be held till maturity are classified as “Held to Maturity”. These are
measured at amortized cost at each year end by taking into account any discount or premium on acquisition.
Premiums are amortized and discounted/ accredited, using the effective or historical yield method. Any
increase or decrease in value of such investments is accounted for equity.

Held for Trading (HFT)
These are investments primarily held for selling or trading. After initial recognition, investments are marked
to market weekly and any decrease in the present value is recognized in the Profit and Loss Account and any
increase is booked to Revaluation Reserve Account through Profit and Loss Account as per Bangladesh Bank
DOS Circular no. 05 dated 28 January 2009.
REPO and Reverse REPO
REPO and Reverse REPO are recorded based on DOS Circular no. 06, dated 15 July 2010 of Bangladesh Bank.
In the case of REPO of both coupon and non-coupon bearing Treasury Bills & Securities. Bank adjusts the
Revaluation Reserve Account for HFT securities and stops the weekly revaluation (if the revaluation date falls
within the REPO period) of the same security. For interest bearing security, the Bank dully accrues interest
during REPO period.
Investments – Initial recognition and subsequent measurement at a glance
Value of investments has been enumerated as follows:
Initial Measurement after
Investment class Recording of changes
recognition initial recognition
Treasury Bill / Bond (HFT) Cost Fair value Loss to Profit and Loss Account, gain to
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Revaluation Reserve through Profit and
Loss Account.
Treasury Bill / Bond (HTM) Cost Amortised value Increase or decrease in value to equity.
Debenture/Bond Face value None None
Shares (Quoted) * Cost Lower of cost or Loss (net) to Profit and Loss Account but
Prize Bond Cost

c market value
None
no unrealised gain booking.
None
d.
* Provision has been made on unrealized loss (gain net off) according to DOS Circular no. 4, dated 24
November 2011.
iii. Loans, Advances and Provision
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- Loans and advances are stated at gross amounts at 31 December 2018.
- Interest is calculated on a daily product basis but charged and accounted for on accrual basis. Interest
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on classified loans and advances will be kept in suspense account as per Bangladesh Bank instructions
and such interest is not accounted for as income until realized from borrowers. Interest is not charged
on bad and loss loans/ investments as per guideline of Bangladesh Bank.
- Provision for loans and advances is made on the basis of quarter-end review by the management and as
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per instructions contained in BRPD circular no. 14 dated 23 September 2012, BRPD circular No. 19 dated 27
December 2012, BRPD circular no. 05 dated 29 May 2013, BRPD Circular No. 16 dated November 18, 2014,
BRPD Circular No. 12 dated August 20, 2018, BRPD Circular No. 15 dated 27 September 2018, BRPD Cicular
No. 01 dated 20 February 2018 and BRPD Circular No. 07 dated 21 June 2018.
The rates for provisions are stated below:
General Provision Specific Provision

Types of loans and advances
UC SMA SS DF BL
Credit Card Financing 2% 2% 20% 50% 100%
Consumer Housing Finance 1% 1% 20% 50% 100%
Financing Professionals to set up business 2% 2% 20% 50% 100%
Other Consumers Finance 5% 5% 20% 50% 100%
Small & Medium Enterprise Finance (SME) 0.25% 0.25% 20% 50% 100%
Loans to brokerage house/MBs/SDs against Share etc. 5% 5% 20% 50% 100%
Short-term agri-credit and micro credit 1% 5% 5% 100%
All Other Credits 1% 1% 20% 50% 100%
Off Balance Sheet exposures expect Bills for Collection 1%
NRBC Bank 191

iv. Property, Plant and Equipment:
Recognition and measurement

All fixed assets are stated at cost less accumulated depreciation as per IAS 16 “Property, Plant and Equipment”.
The cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to
acquire an asset at the time of its acquisition or construction or, where applicable, the amount attributed
to that asset when initially recognised in accordance with the specific requirements of the IFRS.
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 measured reliably:
The cost of an item of Fixed Assets comprises
- its purchase price, including import duties and non-refundable purchase taxes, after deducting trade
discounts and rebates.
- any costs directly attributable to bringing the asset to the location and condition necessary for it to be
capable of operating in the manner intended by management.
- the initial estimate of the costs of dismantling and removing the item and restoring the site on which
it is located.
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Subsequent costs
Subsequent costs are capitalized only when it is probable that the future economic benefits associated with
the costs will flow to the entity and cost can be measured reliably. The carrying amount of the replaced
portion is derecognized. The costs of day to day servicing of fixed assets i.e. repairs and maintenance is
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charged to profit and loss account as expense when incurred.
d.
Depreciation
- Depreciation on fixed assets is charged on straight-line method irrespective of all assets. The rates of
depreciation are as follows:
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Category of asset Rate of depreciation

Land Nil
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Building and Construction 2.50%

Furniture and Fixtures 10%
Equipment and Machinery 20%
Computer and Computer Equipment 20%
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Intangible Assets/Bangladesh Made Computer Software 20%

Professionals and Reference Books 20%
Vehicles 20%
Leasehold Assets - Vehicles 20%
- Depreciation on fixed assets acquired during the year is charged from the month of their acquisition.
Full month’s depreciation is charged in the month of addition irrespective of the date of acquisition and
no depreciation is charged in the month of their disposal.
- The cost and accumulated depreciation of disposed assets are eliminated from the fixed assets
schedule.
- Useful life and method of depreciation of fixed assets will be reviewed periodically. If useful life of assets
do not differ significantly as these were previously estimated, revaluation of assets does not consider
to be done.
- Bank also follows a policy for amortization of expenditure considering the durability and useful life
of items. These are treated as intangible assets and are booked under the head “Fixed Assets” and
amortized over their estimated useful life by charging under the broad head “Depreciation”.
Derecognition of Fixed Asset
The carrying amount of an item of fixed assets is derecognized on disposal or when no future economic
benefits are expected from its use or disposal. The gain or loss arising from derecognition of an item of fixed
assets is to be recorded in profit or loss when the item is derecognized.

v. Leased Assets
Where property, plant and equipment have been financed through lease arrangement under which
substantially all the risks and rewards of ownership are transferred to the lessees are treated as finance
leases as per BAS 17 “Leases”. All other leases are classified as operating leases as per IAS 17 “Leases”
The Bank as Lessor
Amount due from lessees under finance leases are recorded as receivables at the amount of the Bank’s
net investment in the leases (note-7.3). Finance lease income is allocated to accounting periods so as to
reflect a constant periodic rate of return on the Bank’s 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-9). The corresponding
liability to the lessor is included in the balance sheet as a finance lease obligation (note-13). 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
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owned assets.
Depreciation of Property, Plant & Equipment for Tax Purpose
The policy of Depreciation for tax purpose is different from accounting depreciation. According to third
schedule of income tax ordinance, 1984, Depreciation is application on annual basis whatever it’s purchased
or to become workable condition. Equipment & Machinery in the Assets Managment Software divided
c
into Computer and Computer Equipment, Bangladesh Made Computer Software and Office Equipment &
Machinery for accounting & tax purposes shown in the annexure-G & H. Differences of deprecation shall
d.
have effect on deferred assets or liabilities.
vi. Intangible Assets
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According to IFRS-38, an Intangible Asset is recognized if-

a. it is probable that the expected future economic benefits that are attributable to the assets will flow to
the entity; and
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b. the cost of the assets can be measured reliably.

The software used by NRBC Bank represents the value of computer application software licensed for the use of
the Bank. Software is carried out at cost less amortization/depreciation and any impairment losses. Initial cost
comprise licensing fees paid at the time of purchase along with subsequent payment for user license and other
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direct attributable expenditure that are carried in customization of software for its intended use. Software is
amortized/depreciated using the straight line method over the estimated useful life of 5 (five) years commencing
from the month at which payment is made in line with third schedule of Income Tax Ordinance-1984.
vii. Impairment of Assets
An asset is impaired when its carrying amount exceeds its recoverable amount as per IAS 36 “Impairment of
Assets”. The Bank assesses at the end of each reporting period whether there is any indication that an asset
may be impaired and/or whenever events or changes in circumstances indicate that the carrying value of the
asset may not be recovered. If any such indication exists, the Bank and the subsidiaries make an estimate
of the recoverable amount of the assets. The carrying amount of the asset is reduced to its recoverable
amount, if the recoverable amount is less than its carrying amount and impairment losses are recognized in
the profit and loss account. However, impairment of financial assets are guided by the relevant BB circulars/
instructions and IAS 39.
No such impairment has been occurred/identified in the financial year 2018 except Loans and Advances
which measured by relevant Bangladesh Bank Circulars.
viii. Other Assets
“Other assets include advance for operating and capital expenditure, stocks of stationary and stamps,
security deposits to government agencies etc. and such accounts may be quite insignificant in the overall
financial condition of the Bank.
NRBC Bank 193

ix. Non-Banking Assets
There are no assets acquired in exchange for loan during the period of Financial Statements.
B Liabilities and Provisions
i.Borrowings
Borrowings include call money, term borrowings and re-finance from other banks, financial institutions and
Central Bank include interest bearing borrowings which are stated in the financial statements at principal
amount of the outstanding balance. Interest payables on such borrowings are reported under other liabilities.
ii. Deposits and Other Accounts
Deposits and other accounts include non-interest bearing current deposits redeemable at call, interest bearing
short-term deposits, savings deposits and fixed deposits which are initially measured at the consideration
received. These items are subsequently measured and accounted for at the gross value of the outstanding
balance in accordance with the contractual agreements with the counter parties.
iii. Other liabilities
Other liabilities are comprised of items such as provision for loans and advances/ investments, provision
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for taxes, interest payable on borrowing, interest suspense and accrued expenses etc. Individual item-wise
liabilities are recognized as per the guidelines of Bangladesh Bank and International Financial Reporting
Standards (IFRS).
iv. Dividend payments
Dividend payable is recognized when it is declared by Board of Directors. Final dividend is recognized when it
c
is approved by the shareholders in AGM. Any dividend yet to propose/confirm for the year 2018, therefore,
it has not been recognized as a liability in the balance sheet in accordance with IAS 10: “Events after the
d.
Reporting Period”. Dividend payable to the Bank’s shareholders is recognized as a liability if it is approved by
the Shareholder in the Annual General Meeting and there upon shareholders’ right to receive the payment
will be established.
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v. Provision for Loans and Advances

Provision for unclassified loans and advances is made on the basis of quarter end review as instructions
contained in BRPD Circular no. 14 dated 23 September 2012 and BRPD Circular no. 19 dated 27 December
2012. Details are stated in Note 13.01 and 13.02.
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vi. Provision for investment in Capital Market

For recognition of loss suffered from investment in capital market, provision has been made on unrealized
loss (gain net off) according to DOS Circular No. 04 dated 24 November 2011 on portfolio basis.
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vii. Provision for Off-balance sheet exposures

In compliance with Bangladesh Bank guidelines, contingent liabilities have been disclosed under off-balance
sheet items. As per BRPD Circular no.14 dated 23 September 2012 and related earlier circulars, the bank has
been maintaining provision @ 1% against certain off-balance sheet exposures.
viii. Provision for other assets
Provision for other assets is made as per the guidelines mentioned (100% provision is required on other
assets which are outstanding for one year and above) in the BRPD Circular No. 14 dated 25 June 2001.
ix. Provision for nostro account balance.
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 for
the un-reconciled 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 for more than 3 months, Thereafter no provision
has been made.

x. Provision for liabilities and accrued expenses
A provision is recognised in the balance sheet when the Bank has legal or constructive obligations as a result
of past events and it is probable that an outflow of economic benefit will be required to settle the obligations,
in accordance with IAS 37 “Provision, Contingent Liabilities and Contingent Assets”.
No provision is recognised for any possible obligation that arises from past events and the existence of which
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Bank, or any present obligation that arises from past events and it is not
probable that an outflow of resources embodying economic benefits will be required to settle the obligation,
or a reliable estimates of the amount of obligation cannot be made.
However, certain provisions on assets and liabilities are maintained in accordance with relevant Bangladesh
Bank Circulars issued from time to time.
xi. Contingent liabilities
Contingent liabilities which include certain guarantees and letters of credit pledged as collateral are possible
obligations that arise from past events whose existence will be confirmed only by the occurrence or non-
occurrence of one or more uncertain future events not within the control of the Bank. Contingent liabilities
are not recognized in the financial statements as per IAS 37 “Provisions, Contingent Liabilities and Contingent
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Assets”. However, disclosure on contingent liabilities have been made on the face of balance sheet under
“Off-balance Sheet Items” as per the guidelines of BRPD Circular No. 14 dated 25 June 2003.
C Share capital and reserves

i. Authorized and Issued capital
c
The authorized capital of the Bank is the maximum amount of share capital that the bank is authorized by
d.
its Memorandum and Articles of Association to issue (allocate) among shareholders. Part of the authorized
capital can (and frequently does) remain unissued. This number can be changed by shareholders’ approval
upon fulfillment of related provisions of Companies Act 1994. The part of the authorized capital which has
been issued to shareholders is referred to as the Issued Share Capital of the bank.
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Herewith ordinary shares are classified as equity which is transferable to another person/institution as
restriction of transfer being expired.
ii. Paid-up capital

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The paid-up capital represents the amount of Bank’s capital that has been contributed by ordinary
shareholders. The holders of ordinary shares are entitled to receive dividend as recommended by the Board
and subsequently approved by the shareholders from time to time in the Annual General Meeting (AGM).
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Paid up capital stood at Tk. 5,145.00 million after dully approved 5% stock dividend on 5th Annual General
Meeting (AGM) held at 21 July 2018.
iii. Statutory reserve
In compliance with the provision of Section 24 of Bank Companies Act 1991, the bank transfers at least 20%
of its profit before tax to “Statutory Reserve Fund” each year until the sum of statutory reserve and share
premium equals to the paid up capital of the bank.
iv. Asset revaluation reserve
When an asset’s carrying amount is increased as a result of revaluation, the increased amount is credited directly
to equity under the heading of assets revaluation reserve as per IAS 16- “Property, Plant and Equipment”. The
bank is also required to follow the asset’s revaluation guidelines issued by BSEC on 18 August 2013.
No asset’s revaluation has occurred during the reported financial year
v. Reserve for Amortization/ revaluation of securities
When a Financial Asset is catagorised under HTM or HFT and subsequent value of the asset is increased as a
result of amortisation of assets or mark to market revaluation, the net increased amount (for HTM increase
or decrease of book value and for HFT loss to P&L but gain to revaluation reserve through P&L) is credited
directly to equity under the heading of reserve for amortization/revaluation of securities as per Bangladesh
Bank DOS circular no. 06, dated 15 July 2010.
NRBC Bank 195

D Revenue Recognition
i. Interest Income
According to the IAS 18 “Revenue”, the interest income is recognized on accrual basis. Interest on loans and
advances ceases to be taken into income when such advances are classified as per BRPD circular no. 19 dated
27 December 2012 and is kept in interest suspense account. Interest on classified advances is accounted for
as income when realized.
ii. Interest income from investments
Interest income on investments in Government and other securities, debentures and bonds is accounted for
on accrual basis.
iii. Fees and Commission Income
Fees and commissions income on services provided by the Bank are recognised as and when the services
are rendered. Commission charged to customers on letters of credit and letters of guarantee is credited to
income at the time of effecting the transactions.
iv. Income from Exchange
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Exchange income includes all gains and losses from foreign currency’s day to day transactions, conversions
and revaluation of Non-Monetary items.
v. Dividend income
Dividend income from investments is recognized at the time when it is declared, ascertained and right to
receive the payment is established.
c
vi. Interest paid on Deposits and Borrowings
d.
Interest paid on deposits, borrowings, etc. is accounted for on accrual basis according to the IAS 1
“Presentation of Financial Statements”.
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vii. Management and other expense

Expenses incurred by the Bank are recognized on actual and accrual basis.
viii. Taxation
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The expense is comprised of current and deferred tax. Current tax and deferred tax are recognized in profit
or loss except to the extent that it relates to a business combination or items recognized directly in equity.
a. Current Tax
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The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported
in the income statement because it excludes items of income or expense that are taxable or
deductible in other years and it further excludes items that are never taxable or deductible. The Bank’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the
balance sheet date.
Provision for current income tax has been made on taxable income of the Bank @ 35% (except other business
income i.e. 0% on gain of govt. securities, 10% on capital gain of trading shares in Secondary Market and 20%
on dividend income) as prescribed in the Income Tax Ordinance 1984.
b. Deferred Tax
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 recognised 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 utilised. 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 liabilities are recognized for taxable temporary differences arising on investments in
subsidiaries and associates, and interests in joint ventures, except where the Bank is able to control the
reversal of the temporary difference and it is probable that the temporary difference will not reverse in the
foreseeable future.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to
be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled
or the asset is realized, based on tax rates that have been enacted or substantively enacted by the balance
sheet date. Deferred tax is charged or credited to the income statement, except when it relates to items
charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax
assets against current tax liabilities and when they relate to income taxes levied by the same taxation
authority and the company intends to settle its current tax assets and liabilities on a net basis.
The impact on the account of changes in the deferred tax assets and liabilities has also been recognized in
the Profit and Loss Statement as per BAS-12 “Income Taxes” (note 39) and BRPD Circular no. 11 dated 12
December 2011.
ix. Retirement/post-employment benefits
The retirement benefits accrued for the employees of the Bank as on the reporting date have been accounted
for in accordance with the provision of IAS 19 “Employee Benefit”. Bases of enumerating the retirement
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benefit schemes operated by the Bank are outlined below:
a) Defined contribution plans
Defined contribution plans are post-employment benefit plans under which payments into the plan are fixed.
Subsequent payments out of the plan to retired members are made based on the size of the ‘fund’ meaning
c
contributions that have been made into the scheme and investment returns on scheme assets. The Bank
maintains one funded defined contribution plan i.e. “Provident fund” for its employees under a separate
d.
trustee Board.
Provident Fund
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The Bank operates a contributory provident fund for its permanent employees funded by both the employees
and the Bank equally; employees contribute 10% of basic salary and the Bank contributes an equal amount.
The Bank’s contribution is made each month and recorded under salary and allowances. This fund is managed
by a separate trustee Board i.e.
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“NRB Commercial Bnak Limited Employees’ Provident Fund” and any investment decision out of this fund
is made separately from that of the Bank’s funds. This fund received approval from the National Board of
Revenue on 02 September 2014.
b) Defined benefit
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Defined benefit plans are post-employment benefit plan other than defined contribution plans. These plans
define the amount that retired members will receive from the plans during retirement, by reference to factors
such as length of service and salary levels. Contributions are paid into the scheme based on policy of the plan
approved by Board of Directors of its 2nd meeting held on 02 March 2013. The Bank retains an obligation to
make up any shortfall in a plan, thereby bearing the risk of the plan under-performing. The Bank maintains
one funded defined benefit plans “Gratuity fund” for its employees under separate trustee committee.
Staff Gratuity Fund
The Bank operates a funded gratuity scheme approved by the National Board of Revenue with effect from 21
September 2014. The Gratuity Fund is managed separately by “”NRB Commercial Bank Limited Employees’
Gratuity Fund Trust” and any investment decision out of this fund is also made by this Trust. The benefit is
paid to the eligible employees i.e. who have completed minimum 3 (three) years of continuous service at the
time of separation from the Bank. As per policy of the Bank, eligible employees are provided with the benefit
equal to 2 monthly basic salary multiplied by varied rates as per service length.
2.12 Reconciliation of Books of Account
Books of accounts with regard to inter-bank (in Bangladesh and outside Bangladesh) and inter-branch
transactions are reconciled and no material difference was found which may affect the Financial Statements
significantly.
NRBC Bank 197

2.13 Earnings Per Share (EPS)
Basic Earnings Per Share
Basic earnings per share has been calculated in accordance with IAS 33 “Earnings Per Share” which has been
shown in the face of the Profit and Loss Statement. This has been calculated by dividing the basic earnings by
the total ordinary outstanding shares.
Diluted Eearnings 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.
2.14 Directors’ Responsibility on Statements
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 important items and for such transactions
where the Bank has only a business responsibility and no legal commitment. Bills for collection, Stock
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of Govt. savings certificates and all other fall under the memorandum items. However, Bills for Collection
is shown under contingent liabilities as per Bangladesh Bank’s format of reporting.
2.16 Off-Balance Sheet Items
Off-Balance Sheet items have been disclosed under contingent liabilities and other commitments as per
c
Bangladesh Bank’s guidelines. In accordance with BRPD circular no.14 dated 23 September 2012 and BRPD
Circular No. 07 dated 21 June 2018, general provision @ 1% has been made on the outstanding balances
d.
of Off-Balance Sheet exposure except Bills for collection of the Bank as at 31 December 2018. Provision is
made on the total exposure and amount of cash margin or value of eligible collateral is not deducted while
computing Off-Balance sheet exposure.
2.17 Reporting Period
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These financial statements of the Bank cover one calendar year from 1 January to 31 December.
2.18 "Compliance of International Accounting Standard (IAS) and International Financial Reporting.
Standards (IFRS)
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While preparing the Financial Statements, Bank applied most of the International Accounting Standards (IAS)
and International Financial Reporting Standards (IFRS) as adopted by the Institute of Chartered Accountants
of Bangladesh as applicable to the Bank:
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SL No. Name of IAS No. of BAS Status
1 Presentation of Financial Statements 1 Complied *
2 Inventories 2 Complied
3 Statement of Cash Flows 7 Complied
4 Accounting Policies, Changes in Accounting Estimates and Errors 8 Complied
5 Events after the Reporting Period 10 Complied
6 Income Taxes 12 Complied
7 Property, Plant and Equipment 16 Complied
8 Leases 17 Complied
9 Revenue 18 Complied
10 Employee Benefits 19 Complied
11 Accounting for Government Grants and Disclosure of Government 20 N/A
Assistance
12 The Effects of Changes in Foreign Exchanges Rates 21 Complied
13 Borrowing Costs 23 Complied
14 Related Party Disclosures 24 Complied
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15 Accounting and Reporting by Retirement Benefit Plans 26 N/A **
16 Separate Financial Statements 27 Complied
17 Investments in Associates 28 N/A
18 Financial Reporting in Hyperinflationery Economics 29 N/A
19 Financial Instruments: Presentation 32 Complied *
20 Earnings Per Share
c 33 Complied
21 Interim Financial Reporting 34 Complied
d.
22 Impairment of Assets 36 Complied
23 Provisions, Contingent Liabilities and Contingent Assets 37 Complied
24 Intangible Assets 38 Complied
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25 Financial Instruments: Recognition and Measurement 39 Complied *

26 Investment Property 40 Complied
27 Agriculture 41 N/A
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SL No. Name of IFRS No. of BFRS Status

1 First-time Adoption of International Financial Reporting Standards 1 N/A
2 Share Based Payment 2 N/A
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3 Business Combinations 3 N/A

4 Insurance Contracts 4 N/A
5 Non-Current Assets Held for Sale and Discontinued Operations 5 N/A
6 Exploration for and Evaluation of Mineral Resources 6 N/A
7 Financial Instruments: Disclosures 7 Complied *
8 Operating Segments 8 N/A
9 Consolidated Financial Statements 10 Complied
10 Joint Arrangements 11 N/A
11 Disclosure of Interests in Other Entities 12 Complied
12 Fair Value Measurement 13 Complied *
13 Revenue from Contract with Customers 15 Complied
14 Lease 16 Complied
15 Insurance Contracts 17 N/A
N/A Stands for 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.
Departure from BAS/BFRS mentioned in the note 2.1.
NRBC Bank 199

** 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 Bank’s annual report as it is the employer and
not the retirement benefit plan itself.
2.19 Regulatory and Legal Compliance
The Bank complied with the requirements of the following regulatory and legal authorities:
i) The Banking Companies Act 1991 (amendment upto 2018)
ii) The Companies Act 1994
iii) Rules, regulations and circulars issued by the Bangladesh Bank from time to time
iv) The Securities and Exchange Rules 1987
v) The Securities and Exchange Ordinance 1969
vi) The Securities and Exchange Commission Act 1993
vii) The Income Tax Ordinance 1984 and Rules
Viii) The Value Added Tax (VAT) 1991 and Rules
2.20 Risk Management
Risk is defined as uncertainties resulting in adverse variation of profitability or in losses, financial or otherwise.
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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. The
objective of the risk management is that the Bank evaluates and takes well calculative business risks and
thereby safeguarding the Bank’s capital, its financial resources and profitability from various business risks
through its own measures and through implementing Bangladesh Bank’s guidelines and following some of
c
the best practices as under:
2.20.1 Credit Risk
d.
It arises mainly from lending, trade finance and treasury businesses. This can be described as potential loss
arising from the failure of a counter party to perform as per contractual agreement with the Bank. The failure
may result form unwillingness of the counter party or decline in his/ her financial condition. Therefore, the
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Bank’s 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
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approval, administration, monitoring and recovery functions have been segregated. For this purpose, two separate
divisions have been formed within the Credit Division. These are (a) Credit Risk Management Division and (b)
Credit Administration Division. Credit Risk Management Division is entrusted with the duties of maintaining asset
quality, assessing risk in lending to a particular customer, sanctioning credit, formulating policy / strategy for
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lending operation, etc.

A thorough assessment is done before sanction of any credit facility at Credit Risk Management Division. The
risk assessment includes borrower risk analysis, financial analysis, industry analysis, historical performance
of the customer, security of the proposed credit facility, etc. The assessment process starts at Corporate
Division by the Relationship Manager / Officer and ends at Credit Risk Management Division 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 credit committee or the
Management of the Bank or / the Executive Committee. Concentration of credit risk is shown in note -7.5.
In determining a single borrower / large loan limit, the instructions of Bangladesh Bank are strictly followed.
Internal audit is conducted at periodical intervals to ensure compliance of Bank’s and Regulatory polices.
Loans are classified as per Bangladesh Bank’s guidelines. Concentration of single borrowers / large loan limits
is shown in note- 7.5.
2.20.2 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.

2.20.3 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. Foreign exchange dealing on Bank’s
account was accounted & reconciled during the year.
Front Office of Treasury Division and International Division jointly conducted the foreign exchange transactions
and the Mid Office and the Back Office of Treasury Division is responsible for verification of the deals and
passing of their entries in the books of account. All foreign exchange transactions are revalued at Market rate
as determined by Bangladesh Bank at the month end. All Nostro accounts are reconciled on a monthly basis
and outstanding entry is reviewed by the Management for its settlement. The position maintained by the
Bank at the end of day was within the stipulated limit prescribed by the Bangladesh Bank.
Interest Rate Risk
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Interest rate risk may arise from trading portfolio and non-trading portfolio. The trading portfolio of the Bank
consists of government treasury bills, bond, etc. 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 Position Risk

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Equity risk arises from movement in market value of equities held. The NRBC Bank duly exposed the risk
d.
capital market movement and necessary provison has been made on diminution value in share.
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2.20.4 Liquidity Risk comprising Asset Liability Management 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. Management of liquidity
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and funding is carried out by Treasury Department under approved policy guidelines. Treasury front office
is supported by a very structured 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.
2.20.5 Money Laundering Risk
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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.
2.20.6 Information & Communication Technology (ICT) Security Risk

ICT security risk management is a threat to an information technology, data, critical systems and business
processes. Bank exposed these risks through defining clear policies and procedure by assigning roles and
responsibilities of the personnel, ongoing risk assessment, mitigation of risk involving prioritization of the
risk sensitive area and implementing risk control mechanism, and establishing Data Centre (DC) & Disaster
Recovery (DR) for physical security of ICT.
2.20.7 Internal Audit
The Bank has established an independent internal audit function with the head of internal control & compliance
(ICC) reporting directly to the chairman of audit committee. The internal audit team performs risk based audit
on various business and operational areas of the Bank on continuous basis. The audit committee and the
Board regularly reviews the internal audit reports as well as monitor progress of previous findings.
NRBC Bank 201

2.20.8 Prevention of Fraud and Forgeries
As per the requirement of Bangladesh Bank, regular reporting are made on self assessment of various anti
fraud controls as well as any incident of fraud and forgeries that have been identified by the Bank. Regular
staff training and awareness programmes are taken to ensure that all officers and staff of the Bank are fully
aware of various fraud risks in its different working area and prepare them to deal efficiently.
However, no such incident of fraud and forgeries has not been identified in the year 2018.
2.21 Credit rating of the Bank
Credit Rating Information and Services Ltd.-CRISL (a joint venture rating agency of Rating Agency Malaysia
Berhad (RAM) JCR-VIS Credit Rating Company Ltd., Pakistan, Prime Commercial Bank Ltd., Pakistan and Local
Corporate/Sponsors Bangladesh) was engaged by the Bank for the purpose of rating the bank as per BRPD
Circular No. 6 dated5 July 2006, The following ratings have been awarded:
Particulars Periods Date of Rating Long term Short term
Initial Entity Rating 18 April to 31 December 2013 24-Jun-2014 BBB+ ST-3
Surveillance Rating 2014 22-Feb-2015 A- ST-3
Surveillance Rating 2015 30-Mar-2016 A ST-3
Surveillance Rating 2016 04-Apr-2017 A ST-3
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Surveillance Rating 2017 23-Jun-2018 A ST-3
Surveillance Rating 2018 30-May-2019 A ST-2
2.22 Events after Reporting Period
As per IAS -10 “Events after Reporting Period” events after the reporting period are those events, favourable
c
and unfavourable, that occur between the end of the reporting period and the date when the Financial
Statements are authorised for issue. Two types of events can be identified:
d.
(a) those that provide evidence of conditions that existed at the end of the reporting period (adjusting events
after the reporting period); and
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(b) those that are indicative of conditions that arose after the reporting period (no adjusting events after the
reporting period).
In pursuance of para (b) as mentioned above, event after reporting period is in the Note-49
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2.23 Related party disclosures

A party is related to the company if:
i) Directly or indirectly through one or more intermediaries, the party controls, is controlled by, or is under
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common control with, the company; has an interest in the company that gives it significant influence
over the company; or has joint control over the company;
ii) The party is an associate;
iii) The party is a joint venture;
iv) The party is a member of the key management personnel of the Company or its parent;
v) The party is a close member of the family of any individual referred to in (i) or (iv);
vi) The party is an entity that is controlled, jointly controlled or significantly influenced by or for which
significant voting power in such entity resides with, directly or indirectly, any individual referred to in
(iv) or (v); or
vii) The party is a post-employment benefit plan for the benefit of employees of the company, or of any
entity that is a related party of the company.
Details of the related party transactions have been disclosed in Annexure -J1

2.24 Audit Committee of the Board of Directors
i) Particulars of Audit Committee

During the Year 2018, the Audit Committee of the Board was reconstituted 02 (two) times i.e. in the 63rd
meeting and 69th meetings of the Board of Directors held on 26th February 2018 and 19th August 2018
respectively in accordance with the BRPD Circular No. 11 dated 27 October 2013 issued by Bangladesh Bank.
The last Committee was formed on 19th August 2018 comprising of 04 (Four) members of the Board
Date of First Ap-
Sl Status Status with Educational/ Profes-
Name Duration* pointment/ last
no. with Bank Committee sional Qualification
Reappointment
1 year
Mr. Rafikul Islam M.Sc. in Electrical Engi-
1 Director Chairman and 1 10.12.2017
Mia Arzoo neering
month
Mr. S M Parvez 10
2 Chairman Member 26.02.2018 Masters in Engineering
Tamal months
1 year
Mr. Mohammed
3 Director Member and 1 27.12.2017 B.A
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Nazim
month
Mr. Mohammed MA in Education and
4 Director Member 4 months 19.08.2018
Manzurul Islam Journalism
* Duration means holding the position as on 31.12.2018 from first appointment.

c
The Company Secretary acts as Secretary of the Audit Committee of the Board.
d.
ii) Meeting held with Audit Committee
Sl.
Particulars Date of Meeting
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No.
1 20th Meeting of Audit Committee 25th February 2018
2 21st Meeting of Audit Committee 27th March 2018
3 22nd Meeting of Audit Committee 27th May 2018
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4 23rd Meeting of Audit Committee 22nd September 2018

5 24th Meeting of Audit Committee 27th November 2018
The following issues were reviewed and discussed:
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- “Risk-Based Audit Plan-2018” to perform inspection in the Bank;

- Certification on effectiveness of Internal Control Policy, Practice and Procedure;
- Annual Health Report of NRB Commercial Bank Limited for the year ended in 2017;
- Review and recommendation of un-audited Financial Statements;
- Review the strength of audit team by recruiting expert auditors;
- Position of classified/defaulted loans and advances based on the last quarter, i.e., 31.12.2017;
- Reviewing Top 20 classified accounts on regular basis;
- Review of Audited Financial Statements for the year ended on 31st December 2017;
- Review of un-audited Financial Statements on quarterly basis;
- Summary of Comprehensive Core Risk Inspection Reports on the Branches and the Head Office of the
Bank including status of compliance thereof;
- Review the manpower requirement of ICCD, NRBC Bank Limited, Head Office;
- Implementation status and Compliance on the Inspection Report conducted by Bangladesh Bank ;
NRBC Bank 203

iii) Steps taken for implementation of effective internal control procedure of the Bank
In order to implement the effective internal Control procedure of the Bank, the Audit Committee of the
Board reviewed & monitored the following :
i Risk assessment done on the basis of material judgment and recommended to minimize risk and man-
age risk after implementing control parameter.
ii The control mechanism reviewing and recommending for improving the system.
iii Advised to vigilant to ensure that the Banking rules and regulations are meticulously complied by all
branches/divisions/departments.
iv The Management exercised close monitoring on the branches whose NPL is more than tolerable limit.
v Recommendations on internal control system, compliance of rules and regulations and establishment
of good governance within the organization.
vi Implemented ICC policy guideline and recommended for compliance of the policy.
The Committee placed its report regularly to the Board of Directors of the Bank mentioning its review results and
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recommendations on internal control system, compliance of rules and regulations and establishment of
good governance within the organization.
2.25 Approval of Financial Statements c

These financial statements were reviewed by the Audit Committee of the Board of NRBC Bank Limited in its
26th meeting held on March 28, 2019 and was subsequently approved by the Board in its 79th meeting held
d.
on March 30, 2019
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2.26 General
i) Figures relating to the previous year included in this report have been rearranged, wherever considered
necessary, to make them comparable with those of the current year without, however, creating any impact,
except mentioned above, on the operating result and value of assets and liabilities as reported in the Financial
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Statements for the current year.

ii. Figures in these notes and in the annexed Financial Statements have been rounded off to the nearest Taka.
iii. These notes form an integral part of the annexed Financial Statements and accordingly are to be read in
conjunction therewith.
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iv. Expenses in different heads have been rectified according to nature of expense in compliance with relevant
section of Income Tax Ordinane, 1984 and VAT Act, 1991

At Dec 31, 2018 At Dec 31, 2017
Taka Taka
3 Cash
Cash In Hand (Including Foreign Currency) (Note: 3.1) 1,175,893,435 834,220,938
Balance with Bangladesh Bank and its agent bank(s) (Note: 3.2) 2,911,852,530 3,108,053,792
4,087,745,964 3,942,274,730
3a Consolidated Cash
NRBC Bank Limited 4,087,745,964 3,942,274,730
NRBC Bank Securities Limited 30,069 1,896
4,087,776,033 3,942,276,626
3.1 Cash In Hand (Including Foreign Currency)
In local currency (Note: 3.1.1) 1,149,785,070 822,155,556
In foreign currency 26,108,364 12,065,382
1,175,893,435 834,220,938
3.1.1 In local currency
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Cash in Hand (Cash in safe) 1,097,237,070 787,065,556
Cash at ATM and Branch Agent Point 52,548,000 35,090,000
1,149,785,070 822,155,556
3.1a Consolidated Cash In Hand (Including Foreign Currency)
c
NRBC Bank Limited 1,175,893,435 834,220,938
d.
1,175,923,504 834,222,834
3.2 Balance with Bangladesh Bank and its agent bank(s)
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In local currencies (LCY) (Note: 3.2.1) 2,870,864,674 3,070,791,295

In foreign currencies (FCY) (Note: 3.2.2) 15,597,458 36,583,092
2,886,462,132 3,107,374,387
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Sonali Bank Ltd. (as an agent bank of Bangladesh Bank) - local currency 25,390,398 679,405
2,911,852,530 3,108,053,792
3.2a Consolidated Balance with Bangladesh Bank and its agent bank(s)
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NRBC Bank Securities Limited - -
2,911,852,530 3,108,053,792
3.2.1 Balance with Bangladesh Bank and its agent bank(s)-LCY
Bangladesh Bank, Dhaka Office 2,865,788,851 3,053,015,493
Bangladesh Bank, Chittagong Office 2,861,193 1,483,909
Bangladesh Bank, Barisal Office 1,081,081 147,628
Bangladesh Bank, Sylhet Office 581,160 394,522
Bangladesh Bank, Rangpur Office 40,125 5,283,760
Bangladesh Bank, Khulna Office 55,676 10,352,846
Bangladesh Bank, Rajshahi Office 456,589 113,137
2,870,864,674 3,070,791,295
3.2.2 Balance with Bangladesh Bank -FCY
FC Clearning US Dollar 13,802,800 36,507,048
FC Clearning EURO 1,794,658 76,044
15,597,458 36,583,092
Details of Balance with BB (FCY Wise) Account is given with
conversion in Annex-A
NRBC Bank 205

At Dec 31, 2018 At Dec 31, 2017
Taka Taka
3.3 Statutory deposits

Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR)
Cash reserve requirement and statutory liquidity ratio have been calculated and maintained in accordance with clause 1 of
section 33 of Bank Company Act-1991 (Amended upto 2018) along with and DOS circular no. 01 dated 19 January 2014.
The statutory cash reserve requirement is on the Bank’s time and demand liabilities at the rate of 5.50% and has been
calculated and maintained with Bangladesh Bank in current account while statutory liquidity ratio of 13.00% is required,
on the same liabilities is also maintained in the form of treasury bills and bonds including foreign currency balance with
Bangladesh Bank. Both the reserves are maintained by the Bank in excess of the statutory requirements, as shown below:
A. Cash Reserve Requirement (CRR)
As per Bangladesh Bank MPD Circular No. 01 dated April 03, 2018, Bank maintained CRR of minimum 5.0% on daily basis
and 5.5% on bi-weekly basis on average total demand and time liabilities (ATDTL) of the base month which is two months
back of reporting month (i.e. CRR of December 2018 is based on weekly average balance of October 2018):
i. Daily Position as on the reporting date:
Average total demand and time liabilities (ATDTL) of the Three Months 2018 (excluding inter-bank deposit) for basis of
om
determining daily Cash Reserve Requirement (Daily CRR is basis of every two months back of average time and demand
liabilities):
Basis months for CRR Aug-18 Sep-18 Oct-18
Average time and demand liabilities (excluding inter-bank 47,786,013,600 49,200,460,000 51,551,334,000
deposit)
c
d.
Required months for CRR Oct-18 Nov-18 Dec-18
Required Reserve (5% on daily basis of Average Time and Demand Liabilities) 2,389,300,680 2,460,023,000 2,577,567,000
ab
Average Actual reserve maintained with Bangladesh Bank 2,673,353,094 2,740,259,221 2,903,735,806
Surplus (Maintained over requirement) 284,052,414 280,236,221 326,168,806

nk
ii. Bi-weekly cumulative Position

Average total demand and time liabilities (ATDTL) of the Three Months of 2018 (excluding inter-bank deposit) for basis of
determining Bi-weekly Cash Reserve Requirement (Bi-weekly CRR is basis of every two months back of average time and
la
demand liabilities):
Basis months for CRR Aug-18 Sep-18 Oct-18
deposit)
Required months for CRR Oct-18 Nov-18 Dec-18
Required Reserve (5.5% on bi-weekly basis of Average Time and Demand 2,628,230,750 2,706,025,000 2,835,323,000
Liabilities)
Average actual reserve maintained 2,673,353,094 2,740,259,221 2,903,735,806
Surplus (Maintained over requirement) 45,122,344 34,234,221 68,412,806
B. Statutory Liquidity Ratio (SLR) of @ 13 % Average Demand and Time Liabilities

As per clause 1 of section 33 of Bank Company Act -1991 (Amended upto 2018) & DOS circular No - 01 dated 19
January 2014 of Bangladesh Bank (effective from 01 February 2014) all scheduled banks have to maintain SLR
of minimum 13% based on average total demand and time liabilities (ATDTL) of the base month which is two
months back of the reporting month:

At Dec 31, 2018 At Dec 31, 2017
Taka Taka
Basis months for SLR Aug-18 Sep-18 Oct-18
deposit)
Required months for SLR Oct-18 Nov-18 Dec-18
Required reserve of SLR (13% on basis of Average Time & Demand 6,212,181,770 6,396,060,000 6,701,673,000
Liabilities)
Ave. Actual SLR maintained (details in the note C) 7,057,277,834 7,020,904,133 7,233,454,026
Surplus / (dificit) 845,096,064 624,844,133 531,781,026
C. Components of Statutory Liquidity Ratio (SLR) Oct-18 Nov-18 Dec-18

Ave. Cash in hand including Foreign Currency 1,108,902,707 1,016,164,925 1,008,203,141
om
Ave. Excess Reserve of Bi-weekly @5.5% under CRR Balance with BB 46,582,536 48,091,565 71,689,709
Ave. Unencumbered approved securities (HTM) 5,305,152,754 5,234,643,391 5,333,690,220
Ave. Unencumbered approved securities (HFT) 595,442,744 720,964,402 818,841,272
Ave. Other Eligible Security i.e. Prize Bond 1197094 1,039,850 1,029,684
c 7,057,277,835 7,020,904,133 7,233,454,026
4 Balance with other banks and financial institutions

In Bangladesh (Note: 4.1) 2,380,231,257 1,223,920,193
d.
Outside Bangladesh (Note: 4.2) 144,453,613 326,112,339
2,524,684,870 1,550,032,532
4a Consolidated Balance with other banks and financial institutions
ab
In Bangladesh (Note: 4.1a) 2,424,367,751 1,233,350,895

Outside Bangladesh (Note: 4.2a) 144,453,613 326,112,339
2,568,821,364 1,559,463,234
4.1 In Bangladesh
nk
Current Deposits
Bank Asia Ltd, Ruhitpur Br. 325 1,000
Standard Bank Ltd, Principal Br. 3,772 83,239
NCC Bank Ltd, Bhaban Br. 794,397 1,702,889
la
Sonali Bank Ltd, Rangpur Corporate Br. 5,020,485 22,240

Sonali Bank Ltd, Gopalgonj Br. 2,007,128 -
Sonali Bank Ltd, Feni Br. 6,831,996 5,505,000
14,658,103 7,314,368
Special Notice Deposits
Mercantile Bank Ltd, Main Br. 28,295,095 4,516,182
Mercantile Bank Ltd., Agrabad Br. - -
Mercantile Bank Ltd., Sylhet Br. 5,999 8,759
Mercantile Bank Ltd., Barisal Br. - 631
Janata Bank Ltd, Local Office 5,100,000
Mercantile Bank Ltd., Rajshahi Br. 2,294 26,744
Southeast Bank Ltd., Principal Br. 16,344,178 323,637
NCC Bank Ltd., Motihjeel Br. 26,533,211 270,597
Eastern Bank Ltd., Principal Br. 1,020,973 170,786
Jamuna Bank Ltd., FEX Br. 49,002,899 871,991
Agrani Bank Ltd., Principal Br. 40,915,107 5,399,935
Agrani Bank Ltd., Sonargaon Br. 32,350,685 14,100,000
Khulna Corp. Branch, Sonali Bank Ltd 32,253 121,231
Sonali bank Ltd. Narsingdi Br. 3,614 0
Sonali Bank Ltd., Baitul Mokarram Branch 54,007,623 0
Sonali Bank Ltd, Tangail Br. 2,820 2,050
Trust Bank Ltd, Dilkhusha Corp Br (Q-cash Settlement A/c) 3,828,861 2,587,323
257,445,611 28,399,865
NRBC Bank 207

At Dec 31, 2018 At Dec 31, 2017
Taka Taka
Fixed Deposits Receipt (FDRs)

FDR Placement to Banks - 4,300,000
FDR Placement to NBFIs 2,107,475,523 1,183,829,583
2,107,475,523 1,188,129,583
Details of FDRs with Bank & NFBI in Annex-B
Balance with Brokerage Houses Trading A/C.

MBL Securities Ltd 34,458 34,458
IIDFC Securities Ltd 10,788 10,788
NRBC Bank Securities Ltd 606,774 31,130
652,020 76,376
2,380,231,257 1,223,920,193
4.1a Consolidated In Bangladesh
om
NRBC Bank Securities Limited 82,939,059 15,544,070
2,463,170,316 1,239,464,263
Less: Inter company transaction 38,802,565 6,113,368
2,424,367,751 1,233,350,895
4.2 Outside Bangladesh
c
d.
Habib American Bank NY, USD 73,429,090 200,081,694
Mashreq Bank PSC NY, USD 46,858,127 91,917,763
AB Bank Ltd Mumbai, Acu Dollar 1,740,558 382,505
ab
Mashreq Bank PSC London GBP 846,882 1,905,391

United Bank of India, Kolkata, Acu Dollar 5,059,324 24,132,352
Mashreq Bank PSC London EURO 2,825,031 290,281
Mashreq Bank Mumbai Acu Dollar 85,746 16,188
nk
National Bank Of Pakistan, Tokyo, Jpy 4,392,511 275,755

Kookmin Bank, Seoul, Korea 1,584,041 887,095.61
Habib Metro Bank Limited, Karachi Acu Dollar 1,800,598 555,995
Axis Bank Limited, India 5,831,704 5,667,320
la
144,453,613 326,112,339
Details of Nostro Account with conversion in Annex-C
4.2a Consolidated Outside Bangladesh (Nostro Accounts)
NRBC Bank Limited 144,453,613 326,112,339

144,453,613 326,112,339
Less: Inter company transaction - -
144,453,613 326,112,339
4.3 Account-wise/Grouping of Balance with other Banks and Financial
institutions:
Current Deposits 159,763,737 333,503,083

Saving Deposits - -
Special Notice Deposits 257,445,611 28,399,865
Fixed Deposits 2,107,475,523 1,188,129,583
2,524,684,870 1,550,032,532

At Dec 31, 2018 At Dec 31, 2017
Taka Taka
4.4 Maturity grouping of Balance with other Banks

Repayable - on demand 185,508,298 336,343,070
– up to 3 months 1,384,076,044 959,859,879
– over 3 months but below 1 year 955,100,529 253,829,583
– over 1 year but below 5 years - -
– over 5 years - -
2,524,684,870 1,550,032,532
5 Money at call and short notice
Money at call and short notice to Banks 850,000,000 -
Money at call and short notice to NBFIs 446,500,000 -
1,296,500,000 -
5.1 Maturity grouping of balance with other banks
om
Repayable -on demand 870,000,000 -
– up to 3 months 426,500,000 -
– over 3 months but below 1 year
– over 1 year but below 5 years
– over 5 years
c 1,296,500,000 -
d.
5a Consolidated money at call and on short notice
NRBC Bank Limited 1,296,500,000
NRBC Bank Securities Limited -
ab
1,296,500,000 -
6 Investments
Types of Investment - 236,309,189
Treasury Bills 210,803,562 -
nk
Treasury Bonds 5,939,497,099 4,902,759,430

Prize Bond 960,300 1,022,800
Other Investments 1,790,288,533 1,591,341,377
la
7,941,549,494 6,495,123,607
Nature wise
Held for Trading 798,898,750 -
Held to Maturity 5,351,401,910 4,902,759,430
Others 1,791,248,833 1,592,364,177
7,941,549,494 6,495,123,607
Claim wise
Government securities (Note: 6.1) 6,151,260,960 4,903,782,230
Other investments (Note: 6.2) 1,790,288,533 1,591,341,377
7,941,549,494 6,495,123,607
6a Consolidated investments
8,276,747,100 6,864,132,102
8,276,747,100 6,864,132,102
NRBC Bank 209

At Dec 31, 2018 At Dec 31, 2017
Taka Taka
6.1 Government securities

Treasury Bills/ Bonds (Note: 6.1.1) 6,150,300,660 4,902,759,430
Prize Bond 960,300 1,022,800
6,151,260,960 4,903,782,230
6.1.1 Treasury bills/Bonds:
a.Unencumbered
i. Held for Trading

5 Year Treasury Bonds 467,011,350 -
10 Year Treasury Bonds 331,887,400 -
798,898,750 -
ii. Held to Maturity
om
182 Days Treasury Bills 210,803,562 -
5 Year T-Bonds 1,259,592,793 1,828,254,896
10 Year T-Bonds 1,837,725,868 1,501,603,444
15 Year T-Bonds 1,452,252,441 1,010,252,893
20 Year T-Bonds c 591,027,248 562,648,197
5,351,401,910 4,902,759,430
Total (i +ii) 6,150,300,660 4,902,759,430
d.
b. Encumbered : Disclosure regarding of the securitites were being lien under re-purcahsed agreement in the
Annexure- D as per DOS Circular No.- 06 dated 15 July 2010.
ab
6.1a Consolidated Government Securities

nk
6,151,260,960 4,903,782,230
6,151,260,960 4,903,782,230
6.2 Other investments
la
a. Quoted shares & MFs

Investment in Listed Company Share Through NRBC Bank Securities Limited 728,403,906 6,341,377
Mutual Fund (MFs) Through NRBC Bank Securities Limited 20,000,000 20,000,000
748,403,906 26,341,377
b. Unquoted shares
Investment in IPO Subscription 104,660 -
Investment in SWIFT Share (6 no. of Share) of SWIFT SCRL, Belgium 2,779,967 -
2,884,627
c. Investment in Preference Share
Preference Share- Regent Energy and Power Ltd. 40,000,000 60,000,000
40,000,000 60,000,000

At Dec 31, 2018 At Dec 31, 2017
Taka Taka
d. Investment in Bond
BSRM Convertible Bond 99,000,000 198,000,000
Mercantile Bank Subordinated Bond 270,000,000 360,000,000
Trust Bank Subordinated Bond 90,000,000 120,000,000
AB Bank Subordinated Bond 60,000,000 80,000,000
UCBL Subordinated Bond 80,000,000 100,000,000
MTB Subordinated Bond 160,000,000 200,000,000
2nd AB Bank Subordinated Bond 240,000,000 300,000,000
The City Bank Subordinated Bond 0 147,000,000
999,000,000 1,505,000,000
Total (a+b+c) 1,790,288,533 1,591,341,377
Details in the Annexure-E
6.2a Consolidated other investments
om
2,125,486,140 1,960,349,872
2,125,486,140 1,960,349,872
c
6.3 Maturity grouping of Investment
d.
Redeemable-on demand - -
– up to 3 months 210,803,562 129,364,177
ab
– over 3 months but below 1 year 1,701,565,014 306,000,000

– over 1 year but below 5 years 2,790,908,458 2,985,254,896
– over 5 years 3,238,272,460 3,074,504,534
7,941,549,494 6,495,123,607
nk
7 Loans and advances 48,117,783,264 42,960,513,008

7a Consolidated Loans and advances
la

48,188,436,555 43,000,279,756
Less: Inter company transaction 36,556,246 -
48,224,992,801 43,000,279,756
7.1 Maturity grouping
Payable on demand 7,053,645,900 6,005,700,000
Not more than 3 months 13,652,123,762 10,166,487,646
More than 3 months but not more than 1 year 15,368,960,817 15,599,806,177
More than 1 year but not more than 5 years 7,547,360,430 6,304,500,000
More than 5 years 4,495,692,355 4,884,019,185
48,117,783,264 42,960,513,008
7.2 Broad category-wise breakup (Excluding purchased & discounted Bills)
In Bangladesh
Loans 27,569,266,158 22,835,530,729
Overdrafts 9,591,519,053 9,519,108,424
Cash Credit 9,457,810,629 9,166,680,032
46,618,595,841 41,521,319,185
NRBC Bank 211

At Dec 31, 2018 At Dec 31, 2017
Taka Taka
Outside Bangladesh
Loans - -
Overdrafts - -
Cash Credit - -
- -
Total 46,618,595,841 41,521,319,185
7.2a Consolidated Loans, cash credits, overdrafts etc.
46,689,249,132 41,561,085,933
46,652,692,885 41,561,085,933
7.3 Product-wise Loans and Advances
Overdraft 8,092,331,630 9,519,108,424
om
Cash Credit 9,457,810,629 9,166,680,032
Time loan 5,375,350,895 5,397,493,598
Term loan 6,476,351,833 4,779,513,094
Payment Against Document 137,561,646 142,924,390
Loans against Trust Receipt 2,417,422,899 1,736,606,384
Packing Credit
c 525,633,098 429,419,660
EDF Loan 279,673,358 976,570,090
d.
SME Credit 3,941,995,282 2,358,775,376
Lease Finance 521,905,312 513,585,522
Hire Purchase 1,541,523,331 1,678,249,079
ab
Consumer Loan 729,547,731 438,263,376

Staff Loan 485,725,947 369,426,053
Other Loans and Advances 6,635,762,249 4,014,704,107
46,618,595,841 41,521,319,185
nk
7.4 Sectorwise Loans and Advances (Excluding purchased and discounted Bills)
Govt. Sector - -
la
Public Sector - -
Private Sector 46,618,595,841 41,521,319,185
46,618,595,841 41,521,319,185
7.5 Loans and Advances on the basis of significant concentration including Bills
Purchased and Discounted
a) Loans and advances given in favor of sister concern of the Directors ; - -
b) Loans and advances given to Chief Executive Officer and other Senior Executives 148,271,877 266,362,227
of the Banks

At Dec 31,2018 At Dec 31, 2017
Taka Taka
c) Loans and advances allowed to customer exceeding 10% of Bank’s Total
Equity for the year 2018
Total capital of the Bank (In Lac 73,576.65 67,805.51
Taka)
No. of Customer 37 37
Amount of Outstanding Facilities Amount in lac Taka
Funded Facilities 175,305 152,933
Non-Funded Facilities 81,633 68,930
Classified loan thereon Nil Nil
Measures taken for recovery Nil Nil
Figure in Lac Taka
Facilities approved by Bank Balance/Business as on 31.12.2018
SL Name of Client
Funded Non-Funded Funded Non-Funded
om
1 NASSA TAIPEI TEXTILE MILLS LTD 6,393.00 4,000.00 6,433.00 3,388.00
2 GOLDSTAR GROUP 3,000.00 10,150.00 7.50 7,266.00
3 LABIB GROUP 10,340.00 12,786.00 6,752.00 8,300.00
4 IFAD AUTOS LIMITED 5,850.00 1,000.00 2,842.00 36.00
5 AG GROUP c 12,684.00 10,000.00 11,622.00 1,148.00
6 MIR AKHTER HOSSAIN LTD. 5,000.00 4,500.00 - 99.00
7 ANWAR GROUP 7,800.00 5,000.00 7,922.00 -
d.
8 NAVANA GROUP 9,366.00 7,000.00 7,495.00 1,763.00
9 Jamuna Ediboil Industries Ltd Unit-2 10,389.00 10,896.00 10,282.00 34.00
10 ABUL KHAIR GROUP* ((7000)) 16,500.00 6,985.00 659.00
ab
11 HABIB GROUP 5,500.00 5,000.00 5,741.00 2,885.00

12 SB Group* 2450+((3500)) 5,000.00 6,387.00 -
13 Al-Falah Steel & Re-rolling Mills Ltd.* 4560+((2000)) 5,336.00 7,104.00 132.00
14 M. M SHIP BREAKING GROUP 5,450.00 645.33 1,670.00 645.00
15 JAHANGIR & OTHERS* 250+((7000)) 8,000.00 7,035.00 -
nk
16 CHOWDHURY GROUP* 8075+((500.00)) 4,000.00 9,209.00 2,382.00

17 Computer Network Syst 5,000.00 5,000.00 - 1,773.00
18 Blue Planet 8,875.00 10,130.00 4,452.00 9,992.00
19 A A SYNTHETIC FILTD. 6,000.00 5,000.00 6,252.00 510.00
la
20 Aftab Automobiles Ltd 7,490.00 5,000.00 4,763.00 73.00

21 Silver Apperals Ltd. 7,249.00 12,300.00 5,933.00 10,215.00
22 Mahade Fashion Pvt. Ltd 3,927.00 6,000.00 2,442.00 5,534.00
23 NORTHERN HATCHERIES 7,969.00 559.00 8,585.00 66.00
24 Samira Saima Textile Mills 8,000.00 7,000.00 6,197.00 -
25 M/S Hasan & Brothers* 1000+((4000)) 5,000.00 5,077.00 513.00
26 Sanji Group 3,600.00 2,000.00 255.00 297.00
27 LA-Muni Apparels Ltd 2,490.00 4,893.00 2,248.00 86.00
28 Lushaka Group 3,737.00 10,336.00 2,205.00 6,745.00
29 Gram Unnayan Karma (GUK) 500.00 9,000.00 -
2,376.00
30 ARISTOCRATS PROPERTIES LTD. AND 6,175.00 5,000.00 2,115.00 3,652.00
ASSOCIATES
31 Aleya Feeds Ltd & its Associates* 4394+((3330)) 3,700.00 7,680.00 259.00
32 Taratex Fashion Limited 2,800.00 7,000.00 1,497.00 6,330.00
33 Blessing Knitwear Limited* 2713+((705)) 4,954.00 3,904.00 1,904.00
34 BSRM 10,000.00 0.00 9,962.00 -
35 Nitol Motors Ltd. 7,500.00 2,500.00 4,251.00 -
36 Manobik Shajya sangstha 0.00 7,351.00 - 1,995.00
37 M/s. Md. Rasheduzzaman 5,500.00 11,500.00 - 576.00
Total 175,304.50 81,633.00
**Note: Inner limit exist in (*) mark customer’s.
NRBC Bank 213

At Dec31,2018 At Dec 31, 2017
Taka Taka
d) Industry wise loans including Bills purchased & discounted
SL Industries Taka Taka

1 Agri cultural Industry 963,744,485 1,308,842,404
2 Textile 2,471,426,752 2,813,959,835
3 RMG 5,370,354,011 4,597,213,014
4 NBFI 598,762,002 776,279,755
5 Food 183,754,050 124,239,382
6 Bevarage 154,964,250 148,753,367
7 Pharmaceutical 242,303,831 267,120,741
8 Chemical 112,513,063 45,630,212
9 Electrical 91,111,124 160,430,603
10 Construction 3,079,563,281 3,049,896,410
11 House Building Residential 871,220,056 933,172,279
12 Leather 66,276,920 114,871,987
13 Service Industry 1,189,458,782 348,997,136
om
14 Transport 240,764,426 226,181,393
15 Basic Metal 7,145,324 61,960,850
16 Capital Market 12,156,246 -
17 Car loan 5,534,768 9,821,786
18 Furniture c 4,291,540 1,511,674
19 Insurance 3,759,272 8,552,337
20 Consumer Finance 1,789,029,598 1,424,368,088
d.
21 Printing 657,640,712 711,628,819
22 Ship Breaking 590,184,428 200,272,482
23 SME 9,291,251,424 7,775,869,571
24 Staff Loan 485,725,947 369,426,052
ab
25 Steel 2,392,652,881 1,010,955,217

26 Trade Industry 9,265,230,396 8,390,728,038
27 Card 325,704,034 228,480,062
28 Other Manufacturing Industry 7,090,034,730 6,026,633,800
nk
29 Others 561,224,931 1,824,715,715

48,117,783,264 42,960,513,008
7.6 Geographical location-wise Loans and Advances

la
Urban Branch
Dhaka 29,673,156,840 25,924,501,430
Chittagong 6,869,018,810 5,583,050,505
Rajshahi 2,619,347,022 3,079,549,194
Sylhet 1,042,490,789 986,453,641
Barisal 443,556,605 389,289,995
Rangpur 268,644,681 159,607,643
Khulna 152,955,798 115,600,226
Mymensingh 91,514,068 1,797,599
Sub-total 41,160,684,612 36,239,850,233
Rural Branch
Dhaka 5,136,647,698 5,009,067,705
Chittagong 1,169,881,358 1,390,150,460
Rajshahi - -
Sylhet 106,452,921 14,317,276
Barisal 206,822,736 154,242,968
Rangpur 219,862,054 133,627,063
Khulna 117,431,885 19,257,304
Mymensingh - -
Sub-total 6,957,098,652 6,720,662,776
Total 48,117,783,264 42,960,513,008

At Dec31,2018 At Dec 31, 2017
Taka Taka
7.7 Classification of Loan & Advances
Unclassified
Standard Including Staff Loan 44,612,212,115 40,770,503,136
Special Mention account 2,091,171,149 1,157,424,882
Sub-Total (a) 46,703,383,264 41,927,928,017
Classified
Substandard Loan 130,276,607 177,436,012
Doubtful 235,240,636 26,418,465
Bad/loss 1,048,882,758 828,730,514
Sub-Total (b) 1,414,400,000 1,032,584,991
Total (a+b) 48,117,783,264 42,960,513,008
om
7.8 Particulars of required provision for Loans and Advances (for Funded facility)
For Unclassified Loans
Base for
Rate (%)
c Provision
Standard Including Staff Loan 44,612,212,115 Various (*) 389,808,475 362,053,192
d.
Special Mention account 2,091,171,149 Various (*) 19,916,276 10,170,240
Sub-Total (a) 409,724,751 372,223,432
(*) General Provision is Kept @ 2% on Credit Card Loan, @ 2% Loan for Professional, @ 2% on Housing loan, @ 5% on
ab
Consumer Financing and @ 0.25% on Small and Medium enterprise financing and @ 1% on rest unclassified Loans and
advances.
For Classified Loans
nk
Base for Rate (%)

Provision
Substandard Loan (SS)(**) 135,790,060 20 27,158,012 20,746,905
Doubtful (DF)(**) 132,558,959 50 66,279,479 7,537,802
la
Bad/loss (BL) 630,299,185 100 630,299,185 433,024,677

Sub-Total (b) 723,736,676 461,309,384
Required Provision for Loan and advance (c=a+b) 1,133,461,428 833,532,816
Total Provision maintained (Note:13.1 & 13.2) 1,133,461,428 833,532,816
Excess/(Shortfall) of provision as of 31 December 2018 - -
(**) Except Short-term Agri-loan and Micro credit where 5% provision has to be kept on base for provision under SS & DF stage
7.9 Particulars of Loans and Advances
(i) Loans and advances considered good in respect of which the Bank is 17,323,920,129 1,819,226,455
fully secured
(ii) Loans and advances considered good against which, the Bank holds no 8,295,917,058 10,904,419,509
security other than, the debtors’ personal guarantee
(iii) Loans and advances considered as good which is secured owing to 267,401,501 275,740,038
personal liability of one or more parties in addition to debtors’ personal
guarantee
(iv) Loans and advances adversely classified; Such a classified loan for
which no provision has been left - -
25,887,238,688 12,999,386,002
NRBC Bank 215

At Dec 31,2018 At Dec 31, 2017
Taka Taka
(v) Loans and advances due by directors or officers of the banking company or 10,700,060,341 7,134,131,511
any of them either separately or jointly with any other persons
(vi) Loans and advances due from companies or firms in which the directors
of the Bank have interest as directors, partners or managing agents or in
case of private companies, as members - -
(vii) Maximum total amount of loans and advances, including temporary advances
made at any time during the year to directors or managers or officers of the
banking company or any of them either separately or jointly with any other
person. 12,000,000 11,164,451
(viii) Maximum total amount of loans and advance, including temporary

Loans and advances granted during the year to the companies or
firms in which the directors of the banking company have interest
om
as directors, partners or managing agents or in the case of private
companies, as members. 2,312,600,000 1,100,000,000
(ix) Money Receivable/Due from different banking companies
(x) The amount of classified loan on which interest has not been charged
a.
c
(Decrease)/ increase of provision (Specific) 262,427,292 402,658,627
d.
b. Amount of loan write off - -
c. Amount realized against loan previously written off - -
ab
d. Provision kept against classified loan as bad/loss account on the 630,299,185 433,024,677
date of preparation of balance sheet;
e. Interest imposed in suspense account 74,751,704 48,281,085
nk
(xi) Movement of write off loan
Opening balance - -
Add: During the period/year - -
la
Less: Amount realised against loans & advances previously written off - -
Closing Balance
7.10 Securities against Loans including Bill purchased and discounted
Particulars Taka Taka

Collateral of movable/immovable assets 29,369,909,124 26,495,762,868
Local Banks & Financial Institutions Guarantee 782,166,236 933,289,470
Government Guarantee - -
Foreign Bank Guarantee - -
Export Documents 1,384,765,997 2,068,156,700
Fixed Deposit Receipt 1,853,092,818 1,821,174,077
Personal Guarantee 8,295,917,058 10,904,419,509
Other Securities 6,431,932,031 737,595,906
48,117,783,264 42,960,398,531

At Dec 31,2018 At Dec 31, 2017
Taka Taka
7.2a Consolidated Loans and advances
46,689,249,132 41,561,085,933
46,652,692,885 41,561,085,933
8.0 Bills purchased and discounted
Receivable in Bangladesh 919,727,883 1,137,859,351
Receivable outside Bangladesh 579,459,541 301,334,472
1,499,187,423 1,439,193,823
8.1 Maturity grouping of Bills purchased and discounted
Receivable within a period not exceeding 01 month 820,112,036 785,800,000
Receivable within a period exceeding 01 month but less than 03 months 556,720,944 408,987,646
Receivable within a period exceeding 03 months but less than 06 months 118,576,709 243,406,177
om
Receivable within a period equal to 06 months or exceeding that time 3,777,733 1,000,000
1,499,187,423 1,439,193,823
8a Consolidated Bills purchased and discounted
c 1,499,187,423 1,439,193,823
9 Fixed Assets including Premises, Furniture and Fixtures of the Bank
d.
Land, Building and Construction - -
Furniture and fixures 328,694,024 276,011,070
ab
Equipment and Machinery 315,225,583 272,685,453

Computer and Computer Equipment 172,281,965 160,147,984
Intangible Assets/Bangladesh Made Computer Software 157,026,657 136,380,707
Motor Vehicles 46,850,000 27,250,000
nk
Professionals and Reference Books 23,370 23,370

Leased Assets: Motor Vehicle 27,106,624 27,106,624
1,047,208,223 899,605,208
Less: Accumulated Depreciation/Amortization 572,355,069 421,684,081
la
474,853,154 477,921,127
Note: A schedule of Fixed Assets for accounting purpose is given in Annexure- G and Tax Purpose Annexure-H.
9a Consolidated Fixed assets including premises, furniture and fixtures
At cost
NRBC Bank Limited 1,047,208,223 899,605,208
1,059,224,691 911,479,060
Accumulated depreciation
577,268,122 424,250,809
Net Book Value 481,956,568 487,228,251
NRBC Bank 217

At Dec 31, 2018 At Dec 31, 2017
Taka Taka
10 Other Assets
i. Income generating-Equity Investment
90% Equity Shareholding of NRBC Bank Securities Limited 360,000,000 360,000,000
ii. Non-income generating

Advance Security Deposit 3,988,129 3,601,929
Stock of Stationery and printing items [Note -10.1] 10,538,910 7,256,265
Suspense Account [Note -10.2] 96,479,096 79,706,495
Deferred Tax Assets (Note 10.3) 295,810,436 189,517,796
Stamps in Hand 1,994,890 1,595,714
Advance Office Rent 213,505,144 274,939,568
Interest Receivable on Loans and Advances (LDOs) 7,435,667 0
om
Interest Receivable on Balance with Banks & FIs 51,675,476 33,876,361
Interest Receivable on Call Loan & Short Notice Loan 1,102,556 -
Interest Receivable on Treasury Bonds 141,637,371 141,042,266
Interest Receivable on Coupon Bond 21,925,893 33,372,813
Prepaid Insurance Premium
c 1,611,165 983,763
d.
Prepaid Expense-Others 1,095 -
Advance Income Tax [Note -10.4] 1,382,275,162 865,998,645
ab
Membership with Visa Worldwide PLC Ltd. 2,311,500 2,311,500

Prepaid for House Furnishing cost and Passage for Travel 21,498,945 18,379,827
Dividend Receivable on Share/Preference Share 4,949,895 4,704,597
2,258,741,328 1,657,287,539
nk
Total (i+ii) 2,618,741,328 2,017,287,539
10a Consolidated Other Assets

la

2,640,386,306 2,037,059,793
2,279,183,504 1,675,974,829
10.1 Stock of Stationery and Printing items
Printing Stationery (Assets) 7,493,468 4,978,813

Security Papers (Assets) 882,942 572,452
Security Stationery - CARD 2,162,500 1,705,000
10,538,910 7,256,265

At Dec 31, 2018 At Dec 31, 2017
Taka Taka
10.2 Suspense Account
Advance against New Branches 14,461,600 27,313,000
Advance Against Suppliers 12,599,344 2,247,245
Receivable Against payment for Principal of Govt. Securities ( BSP/PSP/3MB) 41,231,341 23,928,583
Advance against TA/DA 55,650 148,200
Cash Remitted to HO/Feeding Branch 9,734,355 11,300,000
Suspense A/C Bank POS and NPSB TXN Dispute amount 61,427 253,885
Suspense Others 5,744,827 4,450,641
Interest Receivable Against payment for Interest of Govt. Securities ( BSP/ 9,484,726 8,850,311
PSP/3MB)
Foreign Remmittance Agencies 1,454,812 104,000
Receivable Against expense of Defaulter/CL 1,108,194 949,920
Stamp for Utility Bill Collection 542,820 160,710
96,479,096 79,706,495
om
Aging of Suspense Account (2018)
Up to 6 Over 6 Months Over 1 Years Above 4
Head of Account
Months to 1 Year (**) to 4 Years Years
Advance against New Branches (***) 13,961,600 - 500,000.00 -
Advance Against Suppliers 12,599,344 - - -
Advance against TA/DA
c 55,650 - - -
d.
Cash Remitted to HO/Feeding Branch 9,734,355 - - -
Suspense A/C Bank POS and NPSB TXN Dispute amount 61,427 - - -
Principal & Intt. Paid for Govt. Securities ( BSP/PSP/3MB) 17,337,653 33,378,414 -
ab
Suspense Others 5,744,827 - - -

Foreign Remmittance Agencies 1,454,812
Receivable Against expense of Defaulter/CL 1,108,194
Stamp for Utility Bill Collection 542,820 - - -
nk
**This includes the amounts that are kept in temporary parking accounts shown under other assets. These balances are in
the process of regular monitoring so that it remains within a non material level.
10.3 Deferred Tax Assets
la
Opening Balance 189,517,796 5,817,615

Additional provision during the Year 106,292,640 183,700,181
Less: Adjustment/Settlement -
295,810,436 189,517,796
Based on detailed analysis Management are satisfied that there would be adequate taxable profit available in future against
of such temporary differences.
10.4 Advance Corporate Tax and withhloding Tax at source
Opening Balance 865,998,645 368,359,610
Add: Advance Corp. Tax & Withhloding Tax during the year [Tax on interest and vehicle] 540,266,546 497,639,035
Sub-Total 1,406,265,191 865,998,645
Less: Settlement during the year* 23,990,029 -
Details in the note : 10.4.1 1,382,275,162 865,998,645
*Final Tax Settlement for the Financial Year 2013 (Assessment Year 2014-15) after Tribunal Order dated 21.10.2018
NRBC Bank 219

At Dec 31, 2018 At Dec 31, 2017
Taka Taka
10.4.1 Advance Corporate Tax and withhloding Tax at source
Advance Corporate Tax ( Under Section #64 of ITO, 1984) 704,616,268 635,694,359
TDS @10% & 15% on Interest Income from Balance with Banks - 46,010,384
TDS@10% on FDR Interest Income with FIs 623,055,129 124,810,143
TDS @ 20% on Cash Dividend received from Quoted Share 7,283,860 10,866,344
Tax deposited @ 5% on commission on L/C 6,105,761 7,081,821
Upfront @ 5% on Interest of T-Bills/Reverse REPO deducted by Bangladesh Bank 40,402,895 40,402,895
Advance Tax to City Corporation/Purasuva under section 52k 11,250 12,700
Advance Tax for Bank's Pool Vehicles 800,000 1,120,000
1,382,275,162 865,998,645
11 Borrowings from Bangladesh Bank, other Banks, Financial Institutions and Agents
om
In Bangladesh (Note 11.1) 299,272,717 1,280,722,753
Outside Bangladesh - -
299,272,717 1,280,722,753
11.1 In Bangladesh c
Bangladesh Bank (Refinance under SPD/SME/WE) 299,272,137 330,722,753
d.
Bangladesh Bank ( LS/REPO) - -
Bangladesh Bank-FCY ( GBP/EURO/USD) 580 -
Borrowings Call and Short Notice from Banks & Fis - 950,000,000
ab
299,272,717 1,280,722,753
Note : Details of Refinance shown in the Annexure-F
11.2 Analysis by Security

nk
Borrowing with Security - -

Borrowing without Security 299,272,137 1,280,722,753
la
299,272,137 1,280,722,753
11.3 Repayment pattern
Repayable on demand 580 950,000,000

Repayable on maturity/terms 299,272,137 330,722,753
299,272,717 1,280,722,753
11a Borrowings from Bangladesh Bank, other Banks, Fiancial Institutions and Agents
NRBC Bank Limited 299,272,717 1,280,722,753

299,272,717 1,280,722,753
12 Deposits and other accounts
Deposit from Inter Bank (Note-12.1) 3,650,000,000 3,100,000,000

Deposit from Customers (Note-12.2) 50,433,280,144 42,126,596,236
54,083,280,144 45,226,596,236

At Dec 31, 2018 At Dec 31, 2017
Taka Taka
12a Consolidated deposits and other accounts
54,124,442,774 45,242,551,132
54,085,640,209 45,236,437,765
12.1 Deposits from Inter Bank
Fixed Deposit
Uttara Bank Limited - 200,000,000
Meghna Bank Limited - 500,000,000
Sonali Bank Limited 500,000,000 500,000,000
Janata Bank Limited 800,000,000 300,000,000
Agrani Bank Limited 400,000,000 400,000,000
Midland Bank Limited - 150,000,000
om
Rupali Bank Ltd. 1,950,000,000 1,050,000,000
3,650,000,000 3,100,000,000
12.2 Deposits and other accounts
i. Current accounts and other accounts

Current Deposit
c 2,168,573,948 1,937,942,162
Foreign Currency Deposit 111,390,068 48,314,456
d.
Sundry Deposit of Retail Business(Cards) 8,906,018 1,507,550
Sundry Deposit of Retailer Point 38 -
Sundry Deposit (Note: 12.2.1) 1,108,476,132 1,038,131,446
ab
3,397,346,204 3,025,895,614
ii. Bills Payable
Pay Order 2,510,922,338 1,879,550,103
nk
iii. Savings Bank Deposit 3,693,607,998 2,892,102,268
iv. Term Deposit/Fixed Deposit

Fixed Deposit 12,144,206,953 17,366,604,558
la
Short Term Deposit 6,229,710,080 4,487,139,751

Deposit Under Schemes 22,457,486,571 12,475,303,942
40,831,403,605 34,329,048,251
50,433,280,144 42,126,596,236
12.2.1 Sundry Deposit
Margin on Letter of Guarantee 288,107,136 129,008,457

Margin on Letter of Credit 316,506,404 577,030,166
Margin on Bills 90,655,154 16,575,113
Margin on Others 55,140,092 32,640,355
Sale Proceeds of Govt. Savings Certificates 55,900,000 42,850,000
Security Deposits 3,228,539 2,191,793
Risk Fund on Loans and Advances 4,610,674 4,430,907
Recognized Provident Fund Balance 4,985,940 -
Employees Welfare Fund 5,968,387 5,346,627
VAT, Excise Duty and Withholding Tax 125,322,082 134,672,677
NRBC Bank 221

At Dec 31, 2018 At Dec 31, 2017
Taka Taka
Value Added Tax - VAT on Utility Bills Collection 21,261,077 13,843,186
Sundry Creditors 4,638,353 2,837,605
Proceed from Lottery Sale 2,600 372,680
Bills/ Fees Collection-Agent Point 30,621 167,003
Sundry Creditors Forex EFTN TXN 160,340 524,215
Sundry NPSB Txn_ Dispute A/C 415,432
Sundry VISA Txn_ Dispute A/C 47,699 17,651
Dividend Payable 21,626,274 9,119,660
Sundry Deposit-Agent Point 95,420 53,984
Other Sundry Deposits 109,773,908 66,449,369
1,108,476,132 1,038,131,446
12.3 Maturity Analysis of Interbank Deposit
Repayable on demand -
om
Paybale within 1 month 1,500,000,000 1,650,000,000
Over 1 month but within 3 months 1,650,000,000 1,450,000,000
Over 3 months but within 6 months 500,000,000
Over 6 months but within 1 year -
Over 1 year but within 5 years -
Over 5 years but within 10 years
c -
d.
Over 10 years -
3,650,000,000 3,100,000,000
12.4 Maturity Analysis of Other Deposit
ab
Repayable on demand 1,417,061,559 1,417,061,559

Paybale within 1 month 7,677,949,481 7,677,949,481
Over 1 month but within 3 months 9,519,561,208 9,519,561,208
nk
Over 3 months but within 6 months 5,794,358,322 5,794,358,322

Over 6 months but within 1 year 6,603,882,996 6,603,882,996
Over 1 year but within 5 years 8,572,112,559 8,572,112,559
Over 5 years but within 10 years 2,541,670,112 2,541,670,112
la
Over 10 years - -
42,126,596,236 42,126,596,236
Bank did not retain any unclaimed deposit above 10 years as of 31 December 2018
12.5 Demand and Time Deposits
A. Demand Deposits
Current Accounts and Other Accounts 2,168,573,948 1,937,942,162
Savings Deposits (9%) 332,424,720 260,289,204
Sundry Deposit 1,108,476,132 1,038,131,446
Foreign Currency Deposit 111,390,068 48,314,456
Sundry Deposit of Retail Business(Cards) 8,906,018 1,507,550
Bills Payable 2,510,922,338 1,879,550,103
6,240,693,223 5,165,734,922
B. Time Deposits
Savings Deposits (91%) 3,361,183,278 2,631,813,064
Short Notice Deposits 6,229,710,080 4,487,139,751
Fixed Deposits 15,794,206,953 20,466,604,558
Deposit Under Schemes 22,457,486,571 12,475,303,942
47,842,586,883 40,060,861,315
Total Demand & Time Deposits 54,083,280,106 45,226,596,236
At Dec 31, 2018 At Dec 31, 2017
Taka Taka
13 Other Liabilities
Accumulated Provision against unclassified Loans and Advances (Note 13.1) 409,724,751 372,223,432
Accumulated Provision against Classified Loans and Advances (Note 13.2) 723,736,676 461,309,384
Accumulated Provision against Off Balance Sheet (OBS) items (Note 13.5) 160,459,933 165,914,312
Payable to Recognized NRBC Bank Employees' Gratuity Fund (Note 13.6) - -
Accrued Interest Payable (Note 13.7) 1,489,314,899 458,821,426
Coupon Interest Payable - 14,211,377
Current Income Tax Payable (Note 13.8) 2,147,730,763 1,437,390,036
Interest Suspense of classified Loans & Advances (Note 13.9) 156,786,910 82,035,207
Payable/Provision for Incentive Bonus-Employees 72,413,187 88,418,558
Provision for Office Rent 1,237,069 1,869,340
Provision for Telephone Bill-Office 39,614 44,558
Provision for Telephone Bill-Residence 14 -
om
Provision for Power and Electricity Expense 726,451 617,230
Provision for Printing Stationary 20,538 50,000
Provision for Other Expenditure - 1,250
Provision for Wasa, Gas and Sewerage Bill 22,950 6,500
Provision for Postage 1,854 1,200
c
Provision for diminution of Shares and Others 32,401,536
Payable/Provision for Ex-gratia - Security and Cleaning support Staff - 20,000,000
d.
FC Held Against BTB Bills, EDF Loan and Others 363,283,743 1,410,054,838
Audit Fees payable 402,500 345,000
CSR/Donation/Contribution Fund 69,419,628 69,419,628
ab
Accrued Revenue for Disbursement-Cards Business 1,588,392 -

Lease Payable for Lease Hold Property (Note 13.10) - 5,601,368
Inter Branch General Account (IBGA) Credit Balance (Note 13.11) 2,387,088 97,336
nk
5,631,698,497 4,588,431,981
13.1 Provision against Unclassified Loans & Advances and Lease/Investments

Standard including Staff loan 389,808,475 362,053,192
la
Special Mentioned Account (SMA) 19,916,276 10,170,240

409,724,751 372,223,432
13.2 Provision against Classified of Loans & Advances and Lease/Investments
Substandard 27,158,012 20,746,905
Doubtful 66,279,479 7,537,802
Bad/Loss 630,299,185 433,024,677
723,736,676 461,309,384.50
13.3 Movement of Provision against Classified Loans and Advances
The movement in specific provision for Bad and Doubtful Debts
Provision held at the beginning of the period 461,309,384 58,650,757
Fully provisioned Depreciated/written off loan during the period (-) - -
Recovery of amounts previously Depreciated /written off Loan (+) - -
Special provision kept for the period (+) 262,427,292 402,658,627
Transferred to general provision of Unclassified Loans (-) - -
Transfer from general reserve (+)
Recoveries and such provision which are no longer required (-) - -
Net charge to Profit and Loss Statement (+) - -
Total Provision held as on 31 December 723,736,676 461,309,384
NRBC Bank 223

At Dec 31, 2018 At Dec 31, 2017
Taka Taka
13.4 Accumulated Provision against Off Balance Sheet (OBS) items
Provision held at the beginning of the period 165,914,312 129,349,471
Less : Transferred to general reserve - -
Add: Provision made during the period - 36,564,842
Less: Adjustment during the period 5,454,379 -
Total Provision held as on 31 December 160,459,933 165,914,312
Provision against Off Balance Sheet (OBS) items has been reduced with refer to BRPD Circular No. 07 dated June 21, 2018,
Bills for Collection received by the bank on behalf of its customers are without any recourse to the bank in case of any
potential default or non-payment. Since no liability is created in case of default or non-payment of bills for collection and
therefore, banks did not maintain any provision against such bills.
13.5 Payable to Recognized NRBC Bank Employees’ Gratuity Fund
Opening Balance - 26,700,000
Add: Contribution made by Bank during the year 21,000,000 19,300,000
om
Less: Release from Bank to the Fund 21,000,000 46,000,000
Closing Balance - -
National Board of Revenue approved “NRB Commercial Bank Limited Employees’ Gratuity Fund” on 21 September 2014,
(Ref:08.01.0000.03502.0021.2014/322) as per clause 2, 3, 4 of Part-C of First Schedule, Income Tax Ordinance 1984. “The
Trusty” will manage the fund and settle the liabilities of employees.
13.6 Accrued Interest Payable
c
d.
Interest Payable of FDR-Day basis 8,731,391 4,008,307
Interest Payable of FDR-1 month 300,989 323,832
Interest Payable of FDR-3 months 34,133,962 67,359,304
ab
Interest Payable of FDR-3 months-Agent 5,656

Interest Payable of FDR-6 months 58,982,058 83,495,850
Interest Payable of FDR-12 months & above 185,180,539 226,321,987
nk

Interest Payable of FDR-24 months 13,635,532
Interest Payable of FDR-24 months -Agent 65,958
Interest Payable of FDR-36 months 17,696,795
la
Interest Payable on Deposit Under Scheme 1,101,813,020 39,096,056

Interest Payable on borrowing from Bangladesh Bank 10,181,845 13,681,283
Interest Payable on borrowing from Other Banks & FIs 58,449,306 23,382,639
Interest Payable on Repo borrowing from Other Banks & FIs 0 574,114
Interest Payable on borrowing from Call Money and Short Notice 6,250 578,056
1,489,314,899 458,821,426
13.7 Current Income Tax Payable
Adjusted Opening Balance 1,437,390,036 790,507,881
Add: Provision made during the Year (Note: 39) 734,330,756 646,882,155
Less: Payment 23,990,029 -
2,147,730,763 1,437,390,036
Final Tax Settlement for the Financial Year 2013 (Assessment Year 2014-15) after Tribunal Order dated 21.10.2018
13.08 Deferred Tax Payable
Opening Balance
Additional Expenses during the Year
Less: Adjustment/Settlement
Deductible temporary differences may be incurred due to application of different depreciation method from third schedule
of ITO-1984 and classified loan loss provision. Inception of company, temporary difference in respective accounting
depreciation was lesser than tax depreciation which already been revert. At the same, BRPD ciucular no 06 dated 31 July
2011 impairment of loan assets claimed for deferred tax purpose unless it will be expense while write off from Books of
account and will be charge in the profit & loss account.
At Dec 31, 2018 At Dec 31, 2017
Taka Taka
13.09 Movement of Interest Suspense Account
Opening Balance 82,035,207 35,843,125.72
Amount of Interest Transferred/credited as suspended in the Year (+) 442,626,814 161,924,635.45
Amount of suspended interest Recovered during the year (-) 360,183,515 112,385,974.30
Amount of suspended interest depreciated/Waiver during the year (-) 7,691,595 3,346,580.27
Closing Balance 156,786,910 82,035,207
13.10 Lease Payable for Financial Lease (Jamuna Bank Limited, Foreign Exchange Branch)
In Compliance with BAS-17, following disclosure are given below regarding minimum lease payment:
i. Not later than one Year - 5,601,368
ii. Later than one year and not later than five Year - -
iii. Later than five year - -
- 5,601,368
13.11 Inter Branch General Account (IBGA) Balance
om
No. of Entry
Inter Branch General Account Credit Balance 34 2,440,001 98,936
Inter Branch General Account Debit Balance 4 52,913 1,600
2,387,088 97,336
13.a Consolidated Other liabilities
NRBC Bank Limited
NRBC Bank Securities Limited
c 5,631,698,497
33,145,451
4,588,431,981
14,050,202
d.
5,664,843,948 4,602,482,182
5,663,641,146 4,601,397,218
ab
14 Share Capital
14.1 Authorized Capital
nk
100,00,00,000 ordinary shares of Taka 10 each 10,000,000,000 10,000,000,000

14.2 Issued, Subscribed and Paid-up-Capital
514,500,134 ordinary shares of Taka 10 each issued for cash 5,145,001,340 4,900,001,460
la
14.3 Movement of Paid-up-Capital

4,900,001,460 4,446,059,000
Opening Balance 244,999,880 453,942,460
Addition during the Year by issuing Stock Dividend 5,145,001,340 4,900,001,460
14.4 Particulars of Share Capital
14.5 Name of the Directors and their shareholdings

14.6 Capital to Risk Weighted Assets Ratio (CRAR) - according to BASEL III
In terms of section 13(2) of Banking Companies Act, 1991 and Bangladesh Bank BRPD Circular No. 07 & 18 dated March
31, 2014 and December 21, 2014 respectively, required capital based on RWA (Solo and Consolidated Basis) of the Bank
are shown below:
NRBC Bank 225

Amt in Crore Amt in Crore
14.7 Core Capital/Common Equity-Tier I (Going Conrcern Capital) Solo Basis Consolidated Basis
Fully Paid-up-Capital 514.50 514.50
Non-Repayable Share Premium Account
Statutory Reserve 105.03 105.03
General Reserve - -
Retained Earnings 84.13 84.74
Dividend Equalization Account - -
Non-Controlling Interest in Subsidiaries - 4.07
Acturial Gain/Loss (Acturial Gain/Loss in Books in Bangladesh for Foreign - -
Bank
Others (If any Items appoved by Bangladesh Bank) - -
Regulatory Adjustment from Tier-1 (Core Capital )
Shortfall in provisions required against Non Performing Loan (NPLs) - -
Shortfall in provisions required against Investment in Shares - -
om
Remaining deficit on account of revaluation of investments in securities - -
after netting off from any other surplus on the securities.
Goodwill and all other Intangible Assets
Deferred Tax Assets (DTA) - -
Defined benefit pension fund assets c 25.78 25.78
Gain on sale related to securitization transaction - -
Investment in own CET-1 Instruments/Shares (As per BASEL III Guideline) - -
d.
Reciprocal Crossholding in the CET-1 Capital of Banking Financial and - -
Insurance Entities
Any investment exceeding the approved limit under section 26 ka(1) of - -
ab
Banking Companies Act, 1991, Others if any

Investment in Subsidiaries which are not consolidated - -
Others, if any - -
Total Admissible Tier-I Capital 677.88 682.55
nk
Additional Tier-1 Capital

Non-Cumulative irredeemable Preference Share - -
Instruments issued by the Bank that meet the Qualifying criteria of addl Tier-
1 (AT-1) as per BASEL III - -
la
Any Other item specifically allowed by BB from time to time for inclusion in AT-1 - -
Others (if any items approved by BB) - -
Regulatory Adjustment from Tier-1

- -
Investment in own AT-1 Instrument/Share as per BASEL III - -
Reciprocal Crossholding in the AT-1 Capital of Banking Financial and
Insurance Entities - -
Others, if any - -
Total Additional Tier-1 Capital Available 677.88 624.35
Maximum Limit of AT-1 (AT-1 Capital can be maximum upto 1.5% of the total 225.94 227.50
RWA or 33.33% of CET1, one word is higher)
Excess amount over Maximum limit of AT-1 - -
Total Admissible Additional Tier-1 Capital
Tier -2 Capital
General Provision (Inclusion in Tier -2 will be limited Maximum 1.25 57.53 57.53
Percentage Point of Credit RWA under standiardized Approach
All other Preference share - -

Subordinate Debt/Instruments issued by Bank that meet the qualifying - -
criteria for Tier-2 as Basel III Guideline
Non-Controlling Interest i.e. Tier 2 issued by consolidated subsidiary to the - -
third Parties
Revaluation Reserves as on 31st December, 2014 (50 % of Fixed Assets & 1.75 1.75
Securities and 10% of Equities)
Others (if any items approved by Bangladesh Bank) - -
59.28 59.28
Regulatory Adjustment from Tier-2
Revaluation Reserves for Fixed Assets, Securities and Equities 1.40 1.40
(Phase in deductions as per Basel III. i.e. 80% for 2014)
Investment in own T-2 Instrument/Share as per BASEL III - -
Reciprocal Cross-holding in the T-2 Capital of Banking Financial and Insurance - -
Entities
Any investment exceeding the approved limit under section 26 ka(1) of - -
Banking Companies Act, 1991, Others if any (50% of Investment)
om
Investment in Subsidiaries which are not consolidated (50% of Investment) - -
Others, if any - -
1.40 1.40
Total Tier -2 Capital Available 57.88 57.88
Maximum Limit of Tier -2 Capital (Maximum up to 4% of the Total RWA or 602.57 606.72
88.89% of CET1, which one is higher)
c
Excess amount over Maximum Limit of T-2 -
d.
Total Admissible Tier-II Capital 57.88 57.88
Total Regulatory Capital 735.77 740.43
ab
A. Total Assets including off-Balance Sheet items 8,651.71 8,659.81

B. Total Risk-Weighted Assets (RWA)
nk
5,243.65 5,256.53
C. Required capital based on Risk Weighted Assets (11.875% of Total RWA for 2018) 622.68 624.21
D. Capital Surplus / (Shortfall) 113.08 116.22
h. Capital to Risk Weighted Assets Ratio (CRAR) (%) 14.03% 14.09%
la
Calculation basis of Risk Weighted Assets in the Annxure-I (A)-Solo and Annxure-I(B)-Consol Basis
Capital Requirement (Percentage of Capital on Risk-Weighted Assets)
Solo Consolidated
Required Held Required Held
Core Capital (Tier - I) plus Cap. Conservation Buffer 6.375% 12.93% 6.375% 12.98%
Supplementary Capital (Tier II) 1.10% 1.10%
Total Capital to Risk Weighted Assets Ratio (CRAR) 14.03% 14.09%
Minimum Total Capital plus Capital Conservation Buffer for 2018 11.88% 11.88%
Excess of CRAR for 2018 2.16% 2.21%
Note : Capital to Risk Weighted Assets Ratio (CRAR) has been calculated as per Basel-III, BRPD Circular No- 18 dated 21 December 2014
NRBC Bank 227

At Dec 31, 2018 At Dec 31, 2017
Taka Taka
15 Statutory Reserve
Opening Balance at the beginning of the period 737,865,685 462,771,400
Add: Addition during the year 312,476,184 275,094,285
Add./less Adjustment for Foreign Exchange Rate Fluctuation - -
Closing Balance at the end of the period 1,050,341,869 737,865,685
* As per Section-24 of Banking Companies Act 1991, 20% of Pre Tax Profit has been transferred to statutory reserve Account
16 Reserve and Fund
General Reserve (Note 16.1) - -
Assets Revaluation Reserve (Note 16.2) - -
Investment Revaluation Reserve (Note 16.3) 10,945,329 82,723
Foreign Currency Translation Gain/ (Loss) (Note 16.4) - -
10,945,329 82,723
16.1 General Reserve
om
Opening Balance at the beginning of the period - -
Add: Addition during the year (+) - -
Closing Balance at the end of the period - -
Note: As per law, Bonus Share/ Cash Dividend may be issued out of surplus of the profit of the year. If there is any short fall,
that may be covered from General Reserve Account as per approval of Board of Directors of the Bank.
16.2 Assets Revaluation Reserve
c
d.
Less : Adjustment during the year (-) -
ab

16.3 Investment Revaluation Reserve
Revaluation Reserve for HFT Securities
nk
Opening Balance at the beginning of the period - 17,937,571

Add: Addition during the year (+) 8,779,800 -
Less : Adjustment during the year (-) - 17,937,571
Closing Balance at the end of the period 8,779,800 -
la
Revaluation Reserve for HTM Securities

Opening Balance at the beginning of the period 82,723 50,617
Add: Addition during the year (+) 2,082,806 32,106
Less : Adjustment during the year (-) - -
Closing Balance at the end of the period 2,165,529 82,723
16.4 Foreign Currency Translation Gain/(Loss)

Note: Bank has no exposure in Foreign Currency denominated business in abroad

16a Consolidated Other Reserve
NRBC Bank Limited 10,945,329 82,723

10,945,329 82,723

At Dec 31, 2018 At Dec 31, 2017
Taka Taka
17 Retained Earnings/Movement of Profit and Loss Account
Restated Opening Balance 709,451,705 621,789,433
Add: Post-Tax Profit during the period (+) 934,342,803 912,289,449
Less: Transfer to Statutory Reserve (-) 312,476,184 275,094,285
Less: Cash Dividend (-) 245,000,073 228,972,039
Less: Stock Dividend (-) 244,999,880 320,560,690
Less: Payment of the Fraction of share to shareholder (-) 193 164
Less: Transfer to General Reserve (-) - -
Add/(Less): Foreign Exchange Translation Loss - -
841,318,178 709,451,705
17a Retained Earnings/Movement of Profit and Loss Account
848,022,268 732,847,194
om
Less: Non-Controlling Intrest 670,409 2,339,549
847,351,859 730,507,645
17b Non-Controlling Interest
NRBC Bank Securities Limited:
Equity Capital of Non-Controlling Interest
c 40,000,000 40,000,000
Add: Retained Earning/(Loss) 670,409 2,339,549
40,670,409 42,339,549
d.
18 Contingent Liabilities 19,455,251,048 16,591,431,161
18.1 Acceptances and Endorsements
ab
Accepted Bills Against BTB LC - Local 2,249,131,538 1,755,396,691

Accepted Bills Against BTB LC - Foreign 767,282,387 793,123,479
Customer Liability agst EDF Fund 147,900,048 -
Bankers Liability against EDF Fund - -
nk
Accepted Bills Against BTB LC EPZ 1,079,424,328 77,698,523

Accepted Bills Against LC Cash 2,091,166,098 1,950,107,810
6,334,904,399 4,576,326,503
18.2 Letters of Guarantee
la
Money for which the Bank is contingently liable in respect of guarantees to the:
Directors - -
Government - -
Banks and other Financial Institutions - -
Others (Note 18.2a) 5,083,593,069 3,252,602,767
5,083,593,069 3,252,602,767
18.2a Letters of Guarantee -Others
Shipping Guarantee against Cash LC-Sight 68,491,253 87,576,774

Bid Bond Local 329,463,123 125,737,344
Performance Guarantee Local 3,273,095,563 2,248,607,120
Advance Payment Guarantee Local 1,412,543,129 781,332,021
Shipping Guarantee agst. BTB LC - 9,349,507
Performance Guarantee Foreign - -
5,083,593,069 3,252,602,767
18.3 Irrevocable Letters of Credit 4,627,495,838 5,383,383,733
18.4 Bills For Collection 3,409,257,742 3,379,118,158
NRBC Bank 229

2018 2017
Taka Taka
19 Income statement
Income:
Interest, discount and similar income (Note-19.1) 6,494,091,113 5,521,957,842
Dividend income (Note-22) 32,688,077 22,274,221
Fees, commission and brokerage (Note-23) 519,597,815 531,244,820
Gains less losses arising from dealing in securities (19.2) 9,693,392 317,831,776
Gains less losses arising from investment securities - -
Gains less losses arising from dealing in foreign currencies - -
Income from non-banking assets - -
Other operating income (Note-24) 158,663,048 142,256,603
Profit less losses on interest rate changes -
7,214,733,445 6,535,565,261
Expenses:
Interest / profit paid on deposits, borrowings, etc. (Note-21) 3,643,918,372 3,147,979,977
om
Losses on loans, advances and lease/ investments - -
Administrative expenses (Note-19.3) 1,374,242,157 1,264,806,040
Other operating expenses (Note-35) 140,565,383 147,361,086
Depreciation on banking assets (Note-34) 150,670,988 147,404,634
c 5,309,396,900 4,707,551,737
Operating Profit of the Bank 1,905,336,545 1,828,013,524
19.1 Interest, discount and similar income
d.
Interest Income (Note 20) 5,792,018,101 4,712,898,016
Interest on Treasury Bills (Note:22) - 9,964,343
Interest Income Money at Call (Note:22) 34,082,778 313,083
ab
Interest on Treasury Bonds (Note:22) 514,889,767 606,756,250

Interest on Coupon Bonds (Note:22) 153,060,636 191,857,213
Interest on Reverse Repo (Note:22) 39,831 55,137
nk
Interest on Zero Coupon Bonds - -

Interest on Bangladesh Bank Bill (Note:22) - 113,800
Gain on Sale of Assets, Properties and Others - -
6,494,091,113 5,521,957,842
la
19.2 Gains/(Losses) arising from dealing in securities

Gain on Sale of Shares and Securities listed with DSE/CSE (Note:22) 20,477,662 92,990,634
Gain on Sale of Bonus Shares listed with DSE/CSE (Note:22) - 5,976,146
Gain on Sale of Approve Govt. Securities (Note : 22) 122,644,311 306,016,747
143,121,972 404,983,526
Less : losses arising from dealing in securities 133,428,580 87,151,750
9,693,392 317,831,776
19.3 Administrative Expenses
Salaries and Allowances (Note : 25) 986,742,567 871,012,914
Rent, Taxes, Insurance, Electricity, etc. (Note : 26) 274,897,470 255,397,600
Regulatory and Legal expenses (Note : 27) 1,786,836 7,783,558
Postage, Stamps, Telecommunication, etc (Note : 28) 23,406,075 21,353,595
Stationery, Printing, Advertisement, etc (Note : 29) 54,473,523 71,554,756
Chief Executive's salary and fees (Note : 30) 11,739,167 13,849,758
Directors' Fees & Meeting Expenses (Note : 31) 15,777,661 19,405,389
Auditors' Fees (Note : 32) 402,500 345,000
Repairs of Bank's Assets (Note : 34) 5,016,358 4,103,470
1,374,242,157 1,264,806,040

2018 2017
Taka Taka
20 Interest Income of the Bank
Interest on Loans and Advances
Loans and Advances 5,555,109,410 4,461,213,073
Bills Purchased and Discounted 18,953,010 11,687,138
5,574,062,420 4,472,900,211
Interest on Balance with
Bangladesh Bank - -
Foreign and Domestic Bank’s & FI’s in Foreign Currency (FCY) 41,902,430 967,942.70
Bank & Financial Institutions (FI) in Local Currency (LCY) 176,053,252 239,029,863
217,955,682 239,997,805
5,792,018,101 4,712,898,016
20a Consolidated Interest Income
om
5,802,218,827 4,718,853,700
Less: Inter company transaction 496,927 1,036,861
5,801,721,900 4,717,816,839
21 Interest Paid on Deposits and Borrowings, etc.
Interest Paid on Deposits (Note 21.1)
c 3,368,735,628 2,732,224,250
d.
Interest Paid on Borrowings (Note 21.2) 275,182,744 415,755,727
3,643,918,372 3,147,979,977
21a Consolidated Interest Paid on Deposits and Borrowings, etc.
ab

NRBC Bank Securities Limited 251,326 -
3,644,169,698 3,147,979,977
Less: Inter company transaction 496,927 1,036,861
nk
3,643,672,771 3,146,943,116
21.1 Interest Paid On Deposits
Current Deposits 9,895,958 10,169,441
Sohoj Sonchoy Deposits 33,373,700 35,482,545
la
Savings Deposits [Customer and Staff] 85,275,117 74,111,340

Special Notice Deposits (SND) 250,519,622 185,389,141
Fixed Deposit Receipts 1,147,347,760 1,303,600,561
Foreign Currency Deposit [FCD, NRTA, RFCD, etc] 472,401 -
Schemes Deposit and Others 1,841,851,069 1,123,471,221
3,368,735,628 2,732,224,250
21.2 Interest Paid on Borrowings
Bangladesh Bank - -
Banks and NBFIs in Foreign Currency (FCY) - 757,636
Call Money Borrowing 30,524,750 41,108,250
REPO Borrowed from Other Banks and FIs 9,011,377 4,409,312
Refinance from Bangladesh Bank 12,551,845 17,713,929
Inter Bank Borrowing 200,910,208 228,547,014
Rebate on Loan Interest of G. Borrower - 121,000
Secondary Govt. Security Purchased (T-Bond/Bill) 22,184,564 123,098,586
275,182,744 415,755,727
NRBC Bank 231

2018 2017
Taka Taka
22 Investment Income
Interest on Treasury Bills - 9,964,343
Interest Income Money at Call 34,082,778 313,083
Interest on Treasury Bonds 514,889,767 606,756,250
Interest on Coupon Bonds 153,060,636 191,857,213
Interest on Reverse REPO 39,831 55,137
Interest on Bangladesh Bank Bill - 113,800
Dividend Income 32,688,077 22,274,221
Gain on Sale of Shares and Securities listed with DSE/CSE 20,477,662 92,990,634
Gain on Sale of Bonus Shares listed with DSE/CSE - 5,976,146
Gain on Sale of Assets, Properties and Others - 39,998
Gain on Sale of Approved Govt. Securities(T-Bond) 122,644,311 306,016,747
877,883,061 1,236,357,571
22a Consolidated Investment Income
NRBC Bank Limited 877,883,061 1,236,357,571
om
887,249,960 1,259,203,953
Less: Inter company transaction -
887,249,960 1,259,203,953
23 Commission, Exchange and Brokerage
Commission on Letter of Credit including Back to Back
c 91,191,799 100,196,032
Commission on Bank Guarantee 65,085,504 41,164,523
d.
Commission on Export Bills 5,174,881 2,645,092
Commission on Accepted Bills including Back to Back 65,674,182 65,030,163
Commission on Clean (FBP/IBP Purcahsed) Bill 151,183 69,718
ab
Commission on Remittance including Foreign Remittance 5,715,079 4,205,283

Commission on Sale of FC Cash 112,848 65,011
Commission from Other Services 247,980 4,930
Underwriting Commission for selling of Govt. Securities 1,318,889 1,462,333
nk
Commission on Agent Banking 16,919 6,733

Commission on Merchant Banking Services - 200
Exchange gain for Trading of Foreign Currency through Export, Import, dealing, remittance (Net) 284,908,551 316,394,801
519,597,815 531,244,820
la
Commission income arises on service provided by the bank which is recognized on a cash basis. Commission charged on
the Customer on Letter of Credit and letter of Guarantee are credited to income at the time of effecting the transaction.
23a Consolidated Commission, Exchange and Brokerage
541,531,332 555,243,838
539,102,531 547,743,237
24 Other Operating Income
Service Charges and Fees 32,665,076 24,701,497
Rental Income-locker 277,000 414,000
Online Client Services 1,145,663 540,700
Income from Card Services 6,571,777 10,474,279
Trade Finance incl. LC Advising, Swift Charge, LC Discrepancy, Postage Recovery, LC Amendment, etc. 100,345,013 87,572,372
Miscellaneous Earnings 17,658,521 18,553,754
158,663,048 142,256,603

2018 2017
Taka Taka
24a Consolidated Other Operating Income
NRBC Bank Securities Limited 1,350,858 749,299
160,013,906 143,005,902
Less: Inter company transaction 3,450 19,424
160,010,456 142,986,478
25 Salaries and Allowances
Basic Salary 297,798,505 252,103,828
Festival Bonus 47,442,100 39,756,800
Yearly incentive Bonus 69,024,938 86,000,000
Leave Encashment/Retirement/Service benefit on Resignation from bank 12,065,908 9,122,231
Bank Contribution To Recognized NRBC Employees' Provident Fund 26,890,777 23,119,705
Contribution to Recog. NRBC Employees' Gratuity Fund Payment/Expense 21,000,000 19,300,000
Contractual Staff Salary 7,875,040 536,180
Salary of Security and Cleaning support Staff 87,386,724 90,521,669
Ex-gratia of Security and Cleaning support Staff 9,944,454 25,709,756
om
Liveries and Uniforms payment (Allowance) for Support Staff 955,066 1,351,917
Allowances and Passage for Travel 406,359,055 339,614,919
986,742,567 871,012,914
25a Consolidated Salaries and Allowances
c 16,773,112 13,824,595
1,003,515,679 884,837,509
d.
1,003,515,679 884,837,509
26 Rent, Taxes, Insurance, Electricity, etc.
ab
Office and Garage Rent (Note : 26.1) 202,860,230 193,562,004

Rates, Taxes and Duties including Trade License/Sign Board Tax/Toll/Parking/ 3,203,549 2,248,935
Excise duty (Note : 26.2)
nk
Insurance Expenses including DMB Insurance to BB (Note : 26.3) 26,837,902 23,508,495

Electricity and Utility Expenses (WASA/Water Supply by Div./Purasuva and 41,995,789 36,078,167
Lift & Guard Salary)
274,897,470 255,397,600
la
26.1 Office and Garage Rent

Office Rent Including ATM Booth 202,860,230 193,657,147
Garage Rent for Car Parking 28,000 30,000
202,888,230 193,687,147
26.2 Rates, Taxes and Duties
Trade/Gun License and Patent Right Tax 731,805 212,300
Holding, Municipality, Sign Board Tax 95,870 40,571
BRTA Vehicle Registration Fees & VAT, Tax token, Fitness, etc. 753,341 202,482
Toll and Parking Tax/Charge 403,301 89,455
Excise/Supplementary Duty 1,027,765 1,229,000
Other Rates and Taxes 191,467 475,127
3,203,549 2,248,935
26.3 Insurance Expenses including DMB Insurance to BB
Deposit Money Insurance to Bangladesh Bank 22,545,950 20,420,244
Vehicle Insurance Premium 516,434 496,443
Central Insurance Policy (Cash in safe, Counter & Transit as well as Fixed Assets) 3,775,518 2,591,808
26,837,902 23,508,495
NRBC Bank 233

2018 2017
Taka Taka
26a Consolidated Rent, Taxes, Insurance, Electricity, etc.
280,850,377 261,340,334
280,850,377 261,340,334
27 Regulatory and Legal expenses
Notary Public Charge and Govt. Fees 4,000 969,800
Consultancy/Professional Fees and Charges 321,900 -
Power of Attorney/Court Fees with Stamp Charge 102,500 172,000
DSE and CDBL Fees (Incl. VAT) 33,000 46,189
RJSC and SEC Fees (Incl. VAT) 17,036 114,714
Legal and Consultancy fees 1,308,400 6,480,855
1,786,836 7,783,558
27a Consolidated Legal/Preliminary Expense
om
1,860,146 7,849,498
c 1,860,146 7,849,498
28 Postage, Stamps, Telecommunication, etc
Stamps and Cartridge Cost 114,789 210,722
d.
Govt. Postal/Registered Postal Service Charge 52,467 26,696
Courier Charges 2,415,774 1,639,555
ab
Telephone and Mobile Expenses 7,535,666 5,984,892

Internet & WIFI Expense and WAN(Link) Connection Charges 13,287,379 13,491,730
23,406,075 21,353,595
28a Consolidated Postage, Stamps, Telecommunication, etc
nk

24,316,437 22,107,351
la
24,316,437 22,107,351
29 Stationery, Printing, Advertisement, Computer & Software etc.
Stationery and Printing Expenses (Note 29.1) 17,720,211 18,728,104

Advertisement and Sponsorship Expense (Note 29.2) 22,033,929 26,185,634
Hoarding & Neon Sign and Misc Advertisement 7,710 2,700
Computer and Software related Expense (Note 29.3) 14,711,673 26,638,318
54,473,523 71,554,756
29.1 Stationery and Printing Expenses
Printing Stationery 5,830,029 5,240,394
Security Papers/ Stationeries 4,638,460 4,822,298
Office Stationeries 6,836,878 8,519,720
Utensil and Crockeries 414,845 145,692
17,720,211 18,728,104

2018 2017
Taka Taka
29.2 Advertisement and Sponsorship Expense
Advertisement in News Papers and Megazine 11,330,987 18,768,409
Advertisement for mourn/Death (VAT Exempted) in News Paper 1,147,550 -
Advertisement in Radio, Television and Online Media 9,205,600 6,327,600
Sponsorship of program, event and sports 349,792 1,089,625
22,033,929 26,185,634
29.3 Computer and Software related Expense
Computer Papers/Stationeries 1,282,888 939,685
Toner, Ribon, Printer Ink Expenses 3,166,596 2,351,994
CBS Annual Maintenance Expense 7,132,192 19,232,445
Software (Other) Maintenance Cost/ Expense 2,832,987 3,166,974
IT Enable Expense 41,350 457,000
Spare Parts for Computer & Hardware 255,660 490,220
14,711,673 26,638,318
29a Consolidated Stationery, Printing, Advertisement etc.
om
NRBC Bank Securities Limited 438,648 1,140,151
54,912,172 72,694,907
54,912,172 72,694,907
30 Chief Executive's salary and fees
c
d.
Basic Salary 5,785,000 7,682,258
Festival Bonus 1,300,000 1,300,000
Other Allowance 4,654,167 4,867,500
ab
11,739,167 13,849,758
31 Directors' fees & Meeting expenses
Directors' Fees 2,051,600 2,014,800
Travelling and Haltage 11,920,497 15,292,132
nk
Directors Meeting Stationery Expense 21,897 -

Board Meeting Expenses including refreshment and Tips to the Drivers 1,783,666 2,098,457
15,777,661 19,405,389
la
Each Director is entitled to get honorarium & travelling expenses for attending meeting of the Board of Directors as per BRPD
Circular Letter #11 dated October 04, 2015. There were no other financial benefits provided to the Directors of the Bank.
31a Consolidated Directors' fees & Meeting expenses
15,889,761 19,809,539
15,889,761 19,809,539
32 Auditors' Fees
Statutory 402,500 345,000
Others - -
402,500 345,000
32a Consolidated Auditors' fees
NRBC Bank Limited 402,500 345,000

448,500 395,000
NRBC Bank 235

2018 2017
Taka Taka
33 Charges on Loan Losses
Loan-written off - -
Interest waived - -
34 Replacement, Repair and Depreciation of Bank’s Assets
Purchased of Spares parts/Accessories for Replacement of Banks Assets (a):
Items purchased for Land, Building and Construction 92,472 25,005

Items/Accessories purchased for Furniture and Fixtures 3,544,683 1,415,150
Parts purchased for Equipment & Machineries 8,840,929 9,108,596
Items/Accessories purchased for Rented Premises 297,105 146,331
Electricity Connection Fee, Installation & Replacement (Paid to Electricity Authority) 1,397,916 1,956,381
Telephone Connection Fee, Installation & Replacement (Paid to TNT Authority) 84,970 102,967
Domain/Internet Connection Fee & Installment 12,830 -
om
Spare Parts/Accessories purchased for Vehicles 1,775,192 1,415,819
Parts purchased for Plant 25,500 14,000
Items/Parts purchased for Premises 8,260 -
c 16,079,857 14,184,250
Repair, Renovation & Maintenance of Bank’s Assets (b):
d.
Repair & Maintenance of Furniture and Fixtures 1,181,561 471,717
Repair & Maintenance of Office Equipment and Machinery 2,566,721 2,644,431
Repair and servicing of Computer and Hardware 84,614 43,443
ab
Repair and Servicing of Motor Vehicle 1,183,462 943,879

5,016,358 4,103,470
Depreciation of Bank’s Assets-Own Assets (c)*:

nk

Furniture & Fixtures 31,878,344 26,845,489
Equipment and Machinery 59,613,054 51,687,095
la
Computer & Computer Equipment 24,282,121 31,685,148

Intangible Assets/ Bangladesh Made Computer Software 24,643,520 26,350,902
Vehicle 6,329,997 5,450,000
Books 4,674 4,674
146,751,710 142,023,308
Depreciation of Bank’s Assets-Leased Assets (d)*:

Furniture & Fixtures - -
Equipment and Machinery - -
Motor Vehicle 3,919,278 5,421,325
3,919,278 5,421,325
Total [a+b+c+d] 171,767,203 165,732,352
*Depreciation has been charged from the month of purhased

2018 2017
Taka Taka
34a Consolidated Replacement, Repair and Depreciation of Assets
174,321,530 167,714,269
174,321,530 167,714,269
35 Other Expenses
Bank Charges (Note: 35.1) 2,614,648 1,736,335

Donation/Contribution and Corporate Social Responsibility (CSR) 35,565,415 64,639,484
Car, Vehicles and helicopters Expenses (Note: 35.2) 4,345,787 3,773,422
Brokerage/Commission to Bank/FIs/Share Trading Co. (Note: 35.3) 533,557 3,731,220
Training, Scholarship and Allowance (Note: 35.4) 9,742,011 3,634,928
Annual Subscription/Membership Fees-Regulatory/Govt./Institutions/Others
om
6,325,906 5,446,482
Entertainment and Refreshment Expenses (Note: 35.5) 8,687,788 7,156,574
Travelling Expenses (Inland & Foreign) for official purpose (Note: 35.6) 9,277,622 7,233,995
Conveyance, Labor, Carriage and Freight Expense (Note: 35.7) 5,567,246 2,657,887
Payment for Development and Publicity Purpose (Note: 35.8) 9,832,227 7,635,192
c
Security Service Provider’s Commission & Charge 18,980,873 16,124,091
d.
First Aid/Medical Expenses 196,025 208,918
Newspaper, Magazine and Periodicals 822,471 511,566
Loss on Sale of Share listed with Stock Exchange 0 11,217,744
ab
Loss on Sale of Govt. Securities: Treasury Bills and Bonds 7,183,551 11,082,799
Interest Expense on Leased Properties 410,801 1,064,737
Card Division Fees, Charges and Expenses (Note: 35.9) 8,398,559 8,767,378
Miscellaneous Expenses (Note: 35.10) 18,519,912 12,762,961
nk
Agent Banking Charges and Expenses 744,535 275,916

Loss on Govt. Securities(Rev):Treasury Bills and Bonds 106,245,029 44,851,207
273,993,963 234,512,837
la
35.1 Bank Charges

Clearing Cheque Charge (VAT Incl.) 390,652 264,336
Online/SMS Banking Charge (VAT Incl.) 1,680,959 1,215,219
Bank Charge incl. A/c Maintain./Cheq. Issue (VAT Incl.) 228,296 57,611
NPSB Transactions Commission (VAT Incl.) 312,384 199,170
Bank Charge for Card Business (VAT Incl.) 2,358 -
2,614,648 1,736,335
35.2 Car and Vehicles Expenses
Car or Vehicles Fuel (Oil/Gas/LPG) Cost 4,288,587 3,574,099

Car or Vehicles Hiring Charge 57,200 74,180
4,345,787 3,648,279
35.3 Brokerage/Commission and Discount paid to Bank/FIs
Commission paid to Bank/FIs 15,764 -
Brokerage Commission/Fees - Share Trading (VAT Exempted) 516,288 3,731,220
Commission and Charge Paid to Others (VAT Incl.) 1,505 -
533,557 3,731,220
NRBC Bank 237

2018 2017
Taka Taka
35.4 Training, Scholarship and Allowance
Training and Seminar Fees & Expenses 2,180,103 1,874,286
Recruitment Test/Allowance 1,040,301 253,082
Honorarium/Trainer Fees/Allowance 262,850 495,500
Scholarship and Higher Study Training 35,000 138,685
Research and Development Exp./Allowance 1,500 1,432
Internship Allowances to Universities Graduate 1,098,427 721,943
Stipend, Reward and Recognition 5,123,830 150,000
9,742,011 3,634,928
35.5 Entertainment and Refreshment Expenses
Process Food Items Through Mushak-11 or VAT Paid 4,319,195 2,862,630
Food Items from Street or open Market 3,496,500 3,220,458
Green Food Item from open Market 872,093 1,073,486
om
8,687,788 7,156,574
35.6 Traveling Expenses (Inland & Foreign) for official purpose
Foreign Travel -Bank Sponsored 1,691,404 1,101,604
Foreign Travel - Govt. Sponsored * 904,513 -
Inland or Domestic Travel by Staff 6,681,705 6,132,391
c 9,277,622 7,233,995
d.
* Section 30(K) of Income tax Ordinance, 1984, Foreign Travel engaged in providing any service to the Government or Travel
for Trade delegates of Govt. will not be considered for limited of expense i.e. 1.25% of yearly Turnover.
35.7 Conveyance, Labor, Carriage and Freight Expense
ab
Local Conveyance by Staff 5,486,103 2,523,797

Labor Charges, Carriage and Freight 81,143 134,090
5,547,246 2,657,887
nk
35.8 Payment for Development and Publicity Purpose

Business Development 3,110,086 5,868,081
Promotion and Routine Expense 6,722,142 1,767,111
la
9,832,227 7,635,192
35.9 Card Division Fees, Charges and Expenses
Card IT enable Service (Charge paid to ITCL) 8,398,559 8,767,378
8,398,559 8,767,378
35.10 Miscellaneous Expenses
Manual Laundry and Cleaning 1,253,768 911,039
Binding, Photography and Photocopy 220,429 234,793
Cash Carrying /Remittance Charge 4,920,896 4,437,617
Nursery and Plantation Purchased 873,667 991,959
Other Professional Charges 39,100 186,125
Discomfort/Closing/Saturday Banking Allowance 3,854,394 2,422,930
Conference/Shareholders Meeting/Programs/Opening Ceremony Expense 6,701,010 2,964,439
NID Verification Charge to Bangladesh Election Commission (VAT Incl.) 463,790 455,296
Employee Welfare - 1,000
Sundry Expenses 192,859 157,763
18,519,912 12,762,961

2018 2017
Taka Taka
35a Consolidated Other Expenses
NRBC Bank Securities Limited 839,116 1,294,893
274,833,080 235,807,730
272,400,828 228,287,704
36 Provision against loans and advances
i. Provision against unclassified Loans and Advances
Provision for Unclassified Loans and Advances including Staff Loan 27,755,283 1,632,400
Provision for SMA Loans and Advances 9,746,036 97,258
37,501,320 1,729,657
ii. Provision against classified Loans and Advances
Provision for Sub-Standard 6,411,107 16,844,707
om
Provision for Doubtful 58,741,678 488,722
Provision for Bad & Loss 197,274,508 385,325,199
262,427,292 402,658,627
299,928,612 404,388,285
36a Consolidated provision against loans and advances
NRBC Bank Limited
c 299,928,612 404,388,285
d.
299,928,612 404,388,285
37 Provision for Diminution in Value of Investments
ab
Provision for Diminution in Value Quoted Company Share & Stock 32,401,536 (2,595,275)
Provision for Diminution in Value Unqoted Share & Stock - -
Provision for Other Assets
nk
32,401,536 (2,595,275)
37a Consolidated Provision for Diminution in Value of Investments
NRBC Bank Limited 32,401,536 (2,595,275)
la
39,790,859 3,146,052
38 Other Provisions
Provision required on Off-Balance Sheet Exposures (5,454,379) 36,564,842
Others - -
(5,454,379) 36,564,842
38a Consolidated Other Provisions
NRBC Bank Limited (5,454,379) 36,564,842
(5,454,379) 36,564,842
39 Current Tax Expense /Payable
1 Taxable Income 1,944,805,108 1,601,784,925
2 Current Tax Payable @37.5% before considering extra ordinery items 729,301,915 640,713,970
3 Less: 10% Tax exemption/rebate on actual expenditure of CSR [SRO 229/2011] (3,556,542) (6,463,948)
4 Add: Dividend Income Tax [20% Tax as per Paripatra 2019-20] 6,537,615 4,454,844
5 Add: Gain on Sale of Shares and Debentures [10% Tax as per SRO no.196/2015] 2,047,766 8,177,289
NRBC Bank 239

2018 2017
Taka Taka
6 Current Tax Payable after considering extra ordinery items 734,330,756 646,882,155
7 Defferred Tax Assets for the period (106,292,640) (183,700,181)
8 Tax Expense for the Period 628,038,116 463,181,974
39a Consolidated Current Tax Expense
632,240,984 468,883,529
39b Consolidated Current Tax Payable
738,731,667 652,398,841
40 Deferred Tax (Income)/Expense
Carrying Amt Tax Base Temporary Difference
om
Fixed Assets 474,853,154 539,944,305 (65,091,151) (12,485,105)
Total Deductible Temporary Difference at Asset side
(65,091,151) -12,485,105
Provision for classified loan 723,736,676 - (723,736,676) (461,309,384)
Total Deductible Temporary Difference at Liability side
c (723,736,676) (461,309,384)
Net Taxable deductible Temporary Difference [i.e. Tax will be paid in future period] (788,827,827) (473,794,489)
Tax Rate @37.5% i.e deferred Tax Liabilities (295,810,435) (189,517,796)
d.
Less : Deferred Tax Income as at 2018 (189,517,796) (5,817,615)
Deferred Tax Income for the year (106,292,640) (183,700,181)
ab
40a Consolidated Deferred Tax (Income)/ Expense
NRBC Bank Limited (106,292,640) (183,700,181)

NRBC Bank Securities Limited (198,043) 184,869
nk
(106,490,683) (183,515,311)
41 Earning Per Share
Profit after Taxation 934,342,803 912,289,449
la
Number of Ordinary Shares outstanding 514,500,134 490,000,146

Earnings Per Share 1.82 1.86
41a Consolidated Earnings Per Share (EPS)

Net Profit attributable to the shareholders of parent company 937,320,543 928,170,847
Number of Ordinary Shares outstanding 514,500,134 490,000,146
Earnings Per Share* 1.82 1.89
*Earnings Per Share (EPS) has been computed by dividing the basic earnings by the number of ordinary shares outstanding
as of 31 December 2018 in terms of Bangladesh Accounting Standard (BAS)-33.

2018 2017
Taka Taka
42 Receipts from Other Operating Activities
Interest on Treasury Bills - 9,964,343

Interest on Money at call 32,980,222 313,083
Interest on Treasury Bonds 514,294,663 592,399,643
Interest on Coupon Bonds 164,507,556 197,525,000
Interest on Reverse REPO 39,831 55,137
Gain on Sale of Shares and Securities listed with DSE/CSE 20,477,662 92,990,634
Gain on Sale of Bonus Shares listed with DSE/CSE - 5,976,146
Gain on Sale of Approve Govt. Securities 122,644,311 306,016,747
Interest on Bangladesh Bank Bill - 113,800
Gain on Sale of Assets, Properties and Others - 39,998
Service Charges and Fees 32,665,076 24,701,497
Rental Income 277,000 414,000
om
Online Client Services 1,145,663 540,700
Income from Card Services 6,571,777 10,474,279
Trade Finance incl. LC Advising, Swift Charge, LC Discrepancy, Postage Recovery, LC Amendment, etc. 100,345,013 87,572,372
Miscellaneous Earnings 17,658,521 18,553,754
c 1,013,607,292 1,347,651,133
42a Consolidated Receipts from other Operating Activities
d.
ab
1,014,958,150 1,363,565,476
Less: Cash Increase/(Decrease) through Inter-company Transaction -
1,014,958,150 1,363,565,476
nk
43 Payments for Other Operating Activities
Rent, Taxes, Insurance, Electricity, etc 276,032,567 275,213,295

Regulatory and Legal expenses 1,786,836 7,783,558
la
Audit Fees 345,000 287,500

Postage, Stamps, Telecommunication, etc 23,809,528 23,886,826
Directors' fees & Meeting Expenses 15,777,661 19,405,389
Purchsed of Spares parts/Accessories for Replacement of Banks Assets 16,079,857 14,184,250
Repair, Replacement, Renovation & Maintenance of Bank's Assets 5,016,358 4,103,470
Payment for Donation/Contribution/CSR and Subscription 35,565,415 109,475,358
Other Expenses 255,829,798 251,211,309
630,243,020 703,090,178
43a Consolidated Payments for Other Operating Activities

631,540,567 704,879,954
Less: Cash Increase/(Decrease) through Inter-company Transaction - (631,926)
631,540,567 705,511,880
NRBC Bank 241

2018 2017
Taka Taka
44 Payment for /(Receive) of Other Assets
Advance Security Deposit 386,200 222,000
Suspense Account 16,772,601 51,783,611
Advance office Rent (61,434,424) (50,435,069)
Share Sale proceed Receivable - (545,030)
Inter Branch General Account Balance (Dr Balance) - -
(44,275,622) 1,025,513
44a Consolidated Payment for /(Receive) of Other Assets
NRBC Bank Limited (44,275,622) 1,025,513

NRBC Bank Securities Limited (6,700,583) (28,237,889)
(50,976,205) (27,212,376)
om
Less: Cash Increase/(Decrease) through Inter-company Transaction - -
(50,976,205) (27,212,376)
45 (Payment)/Receive of Other Liabilities c
FC Held Against BTB Bills, EDF Loan and Others (1,046,771,095) 480,090,364.04
d.
Inter Branch General Account Balance (Cr. Balance) 2,289,752 68,244.00
Current Tax Liability (23,990,029)
ab
Received against service of Card Business (Accrued income) 1,588,392

Lease Payable for Lease Hold Property (5,601,368) (6,305,543)
(1,072,484,349) 473,853,065
nk
45a (Payment)/Receive of Other Liabilities
NRBC Bank Limited (1,072,484,349) 473,853,065

la

(1,072,484,349) 473,853,065
Less: Cash Increase/(Decrease) through Inter-company Transaction -
(1,072,484,349) 473,853,065
46 (Purchase)/ Sale of Government Securities
Treasury Bills-HFT (798,898,750) 1,503,994,553
Treasury Bills-HTM (448,642,481) (1,153,724,191)
Adjustment of Revaluation (Gain)/Loss on Treasury Bills/ Bonds (non cash) 10,862,606 (17,905,465)
(1,236,678,624) 332,364,897

47 Currency Conversion Rates
Assets and Liabilities as at 31 December 2018 denominated in foreign currencies converted to local currency
Bangladesh Taka (BDT) at the following exchange rates:
Currency Abbreviation Unit Equivalent BDT

US Dollar USD 1 83.9000
Japanese Yen JPY 1 0.7533
EURO EURO 1 95.2349
GBP GBP 1 105.9825
48 Highlights of overall activities of the Bank

2018 2017
Sl # Particulars
Taka Taka
1 Paid-up Capital 5,145,001,340 4,900,001,460
2 Total Capital 7,357,664,839 6,780,551,315
om
3 Capital Surplus 1,130,824,771 1,137,393,454
4 Total Assets 67,142,864,878 57,529,354,798
5 Total Deposits 54,085,640,209 45,236,437,765
6 Total Loans and Advances 48,151,880,309 43,000,279,756
7 Total Contingent Liabilities and Commitments 19,455,251,048 16,591,431,161
8 Credit-Deposit Ratio
c 85.91% 92.18%
d.
9 Total Non performing Loans & Advances (NPL) 1,414,400,000 1,032,584,991
10 Ratio of NPL 2.94% 2.46%
11 Profit after Tax and Provisions 937,651,403 928,938,814
ab
12 Provision made against Classified Loans & Advances 723,736,676 461,309,384

13 Provision Surplus/(deficit) - -
14 Cost of Fund 10.74% 8.99%
15 Interest Earning Assets 60,133,876,757 51,089,425,585
nk
16 Non-interest Earning Assets 7,008,988,122 6,439,929,213

17 Net Interest Income (NIM) 2,158,049,129 1,570,873,723
18 Return on Investments (ROI) 13.89% 15.30%
19 Return on Assets (ROA) 1.50% 1.67%
la
20 Income from Investments 887,249,960 1,259,203,953

21 Earnings Per Share 1.82 1.89
22 Net Income Per Share 1.82 1.89
23 Net Assets Value 13.71 13.00
24 Price-Earnings Ratio (Times) * N/A N/A
* Bank is yet to be listed with any stock exchange in Bangladesh
49 Events after Reporting Period
The Board of Directors of NRBC Bank Limited in its 79th Board Meeting held on March 30, 2019 recommended Dividend
@ 11% in the form of Stock on the holding of shares on record date fixed by Board for the year end December 31, 2018.
Managing Director Director, BoD Chairman, Audit Committee of BoD Chairman, BoD
NRBC Bank 243

Annexure-A
Currency wise Balance of FC Clearing Accounts with Bangladesh Bank
December 31, 2018 2017

Name of Amount Equivalent
SL Name of the Account Location Conversion Amount in
currency in Foreign Amount in
Rate Taka
Currency Taka
1 BB FC Clearing Dhaka USD 164,514.90 83.9 13,802,800 36,507,048
2 BB FC Clearing Dhaka Euro 18844.54 95.2349 1,794,658 76,044
Total 183,359 15,597,458 36,583,092
Annexure-B
Placement of FDR/TDR with other Banks/NBFIs
om
SL Name of the NFBIs Period Issue Date Maturity Date Principal Amount
1 Hajj Finance Company Limited c 184 Daily 7/18/2018 1/18/2019 50,000,000
2 Hajj Finance Company Limited 184 Daily 7/22/2018 1/22/2019 50,000,000

d.
3 Phoenix Finance & Investment Limited 182 Daily 10/2/2018 4/2/2019 100,000,000
4 Union Capital Limited 182 Daily 10/3/2018 4/3/2019 50,000,000

ab
5 FAS Finance and Invested Limited 182 Daily 10/3/2018 4/3/2019 50,000,000
6 Fareast Finance and Investment Limited 182 Daily 10/3/2018 4/3/2019 50,000,000
nk
7 Meridian Finance and Investment Ltd. 182 Daily 10/4/2018 4/4/2019 50,000,000
la
9 Prime Finance & Ivestment Limited 182 Daily 10/4/2018 4/4/2019 50,000,000
12 Prime Finance & Ivestment Limited 182 Daily 10/9/2018 4/9/2019 50,000,000
13 International Leasing & Financial Services Limited. 91 Daily 10/14/2018 1/13/2019 90,000,000
14 Bangladesh Industrial Finance Company Ltd 365 Daily 3/11/2018 3/11/2019 52,404,994
15 Bangladesh Industrial Finance Company Ltd 365 Daily 4/15/2018 4/15/2019 55,070,529
16 Bangladesh Finance and Investment Company Ltd. 182 Daily 10/23/2018 4/23/2019 100,000,000
17 Imnvestment Corporation of Bangladesh 90 Daily 10/24/2018 1/22/2019 600,000,000

SL Name of the NFBIs Period Issue Date Maturity Date Principal Amount
20 GSP Finance Company (Bangladesh) Limited 91 Daily 11/5/2018 2/4/2019 200,000,000
22 International Leasing & Financial Services Limited. 90 Daily 11/20/2018 2/18/2019 40,000,000
23 First Lease Finance and Ivestment Limited. 98 Daily 12/2/2018 3/10/2019 20,000,000
24 Fareast Finance and Investment Limited. 90 Daily 12/24/2018 3/24/2019 50,000,000
Total 2,107,475,523
Annexure-C
om
Currency wise Balance of Nostro Accounts
c December 31, 2018 2017

Name of
SL Name of the Bank Location Amount in
Currency Conversion Equivalent Amount in
Foreign
d.
Rate Amount in Taka Taka
Currency
1 Habib American Bank New York USD 875,197.74 83.9000 73,429,090 200,081,694
ab
2 Mashreq Bank PSC New York USD 558,499.73 83.9000 46,858,127 91,917,763
3 AB Bank Limited Mumbai Acu Dollar 20,745.62 83.9000 1,740,558 382,505

nk
4 Mashreq Bank PSC London GBP 7,990.77 105.9825 846,882 1,905,391
5 United Bank of India Kolkata Acu Dollar 60,301.84 83.9000 5,059,324 24,132,352
la
6 United Bank of India Kolkata Acu Euro - - - -
7 Mashreq Bank PSC London EURO 29,663.82 95.2349 2,825,031 290,281
8 BHF-Bank Aktienge- EURO Account - - -

sellschaft, Closed
Germany
9 Mashreq Bank PSC Mumbai Acu Dollar 1,022.00 83.9000 85,746 16,188
10 National Bank of Pakistan Tokyo Jap. Yen 5,831,025.00 0.7533 4,392,511 275,755
11 Kookmin Bank Seoul USD 18,880.11 83.9000 1,584,041 887,096
12 Habib Metro Bank Limited Karachi Acu Dollar 21,461.24 83.9000 1,800,598 555,995
13 Aktif Yatirim Bankasi A.S Istanbul EURO Account - - -

Closed
14 Axis Bank Limited Kolkata Acu Dollar 69,507.80 83.9000 5,831,704 5,667,320
Total 7,494,296 144,453,613 326,112,339
NRBC Bank 245

Annexure-D
Disclosure regarding the Govt. Securities under REPO and Reverse REPO
a. (i) Disclosure regarding outstanding REPO as on 31 December 2018
Amount
SL No Counter Party Name Agreement Date Reversal Date (Ist leg cash
consideration)
Nil
Total -
a. (ii) Disclosure regarding outstanding Reverse REPO as on 31 December 2018
om
Amount
SL No Counter Party Name Agreement Date Reversal Date (Ist leg cash
consideration)
c Nil
d.
Total -
ab
b. Disclosure regarding overall transaction of outstanding REPO and Reverse REPO
Minimum Maximum Daily average

SL No outstanding during outstanding during outstanding during the
nk
the year the year year

Securities Sold Under REPO
i. With Bangladesh Bank Nil Nil Nil
la
ii With Other Bank & FIs 110,097,203.00 700,643,495.00 41,736,760.07

Securities purchased under reverse REPO
i. From Bangladesh Bank Nil Nil Nil
ii From Other Bank & FIs 62,525,515.00 260,545,796.69 885,126.88

Annexure-E
Investment in Quoted Shares Preference Share and Bonds
a. Quoted Shares & MFs
SL Company Name Market Value (Tk.) Cost Value (Tk.)
1 Banks 415471437.7 429,774,966
2 NBFIs 72,967,959 65,797,537
3 Engineering 100,854,791 116,474,161
4 Textiles 23,091,189 24,575,329
5 Fuel & Power 46,894,277 50,536,134
6 Pharmaceuticals & Chemicals 36,722,717 41,245,779
7 Mutual Fund 20,000,000 20,000,000
Total 716,002,370.00 748,403,906
b. Investment in Preference Share
om
Intt.
Maturity Amount
SL Issuer Name Financial Product Tenure Rate/ Major Feature
Date (Taka)
Divi.
1 Regent Power Regent Power 6 Years 13.00% 11-May- 40,000,000 Preference Share with having tax
Limited Preference Share 20 Rebate
Total 40,000,000
c. Investment in Bonds
c
d.
Intt.
Maturity Amount
SL Issuer Name Financial Product Tenure Rate/ Major Feature
Date (Taka)
Divi.
ab
1 Mercantile Mercantile Bank 7 Years Floating 29-Jun- 270,000,000 Subordinated Bond. Floating
Bank Limited Subordinated Bond Rate 21 Rate bond Ranging from
12% to 15% based on 6
month average FDR rate plus 3%
mark-up
nk
2 The Trust Bank Trust Bank 7 Years 12.50% 7-Sep-21 90,000,000 Subordinated Bond at Fixed Rate.
Limited Subordinated Bond
3 AB Bank AB Bank Subordinated 7 Years Floating 26-Aug- 60,000,000 " Subordinated Bond. Floating Rate
Limited Bond Rate 21 bond Ranging from 9.82% to 12.82%.
la
based on 5 year Govt. Treasury Bond

Rate plus 3% markup.
5 United UCBL Subordinated 7 years Floating 29-Jul-22 80,000,000 "Subordinated Bond
Commercial Bond Rate having Floating Rateof
Bank Limited Govt bond Ranging from
10%to 13.50% based on 6
month average FDR rate of
schedule Bank Plus 2.5% mark-
up
6 Mutual Trust MTB Subordinated 7 years Floating 20-Oct- 160,000,000 “ Subordinated Bond having Floating
Bank Limited Bond Rate 22 Rate of Govt bond Ranging from
10.50%to 13.50% based on 6 month
average FDR rate of schedule Bank
Plus 2.5% mark-up.
7 AB Bank 2nd AB Bank 7 years Floating 29-Sep- 240,000,000 “ Subordinated Bond having
Limited Subordinated Bond Rate 22 Floating Rate of Govt bond
Ranging from 10.50%to 13.50%
based on 6 month average FDR rate
of schedule Bank Plus 2.5% margin.
8 BSRM Limited BSRM Convertible 5 Years 13.00% 27-Apr- 99,000,000 Subordinated Bond at Fixed Rate.
Bond 19
Total 999,000,000
NRBC Bank 247

Payment Schedule against Refinance
Annexure-F
A. Refinance from Bangladesh Bank under Refinance Scheme
No. of Refinance Intt. Maturity
SL Refinance Scheme Branch Name Tenure Amount (Taka)
Facilities Rate Date
1 Special Programme Loan-Agri 05 Years 5.00% 2/11/2019 18,120,548
2 Women Entrepreneur 01 Year 5.00% 1/4/2019 5,000,000
3 Jute & Jute Products 01 Year 5.00% 2/11/2019 40,000,000
Principal Branch
4 Jute & Jute Products 6 01 Year 5.00% 7/4/2019 120,000,000
7 Agri Mawna Branch 05 Years 5.00% 4/1/2013 4,500,000
8 Solar Energy- Green Finance 2 03 Years 5.00% 2/4/2019 1,812,420
Hemayetpur Branch
9 Solar Energy- Green Finance 5.00% 2/4/2020 2,727,274
10 Small & Medium Enterprise Uttara Branch 1 05 Years 5.00% 1/22/2020 937,500
11 Women Entrepreneur Boardbazar Branch 03 Years 5.00% 10/19/2019 666,667
1
12 Women Entrepreneur Mugrapara Branch 05 Years 5.00% 11/16/2021 360,000
om
13 Women Entrepreneur Sylhet Branch 01 Year 5.00% 4/10/2023 450,000
1
14 Women Entrepreneur Sylhet Branch 05 Year 5.00% 3/19/2018 1,500,000
15 Women Entrepreneur Barisal Branch 1 05 Years 5.00% 9/23/2020 2,500,000
16 Women Entrepreneur Naogaon Branch 1 01 Year 5.00% 1/8/2018 5,000,000
17 Effluent Treatment Plant Chatkhil Branch 1 05 Years 5.00% 12/21/2023 2,272,727
18 Women Entrepreneur Bhulta Branch 2 01 Year 5.00% 4/10/2019 1,500,000
19
20
Women Entrepreneur
Women Entrepreneur
Bhulta Branch
Rajshahi Branch
c 1
1
05 Year
01 Year
5.00%
5.00%
4/10/2023
1/4/2019
425,000
1,500,000
d.
21 Jute & Jute Products Hatirpul Branch 1 01 Years 5.00% 1/21/2019 10,000,000
Total 299,272,137
B. Refinance from Bangladesh Bank (Product wise)
ab
No. of Refinance Intt. Maturity

SL Refinance Scheme Branch Name Tenure Amount (Taka)
Facilities Rate Date
1 Special Programme Loan-Agri Principal Branch 1 05 Years 5% 11-Feb-19 18,120,548
Sub-Total 18,120,548
nk
1 Small & Medium Enterprise Uttara Branch 1 05 Years 5% 22-Jan-20 937,500

Sub-Total 937,500
1 Jute & Jute Products Principal Branch 5 01 Year 5% 11-Feb-19 40,000,000
2 Jute & Jute Products Principal Branch 01 Year 5% 4-Jul-19 120,000,000
3 Jute & Jute Products Principal Branch 01 Year 5% 11-Feb-19 30,000,000
la
4 Jute & Jute Products Principal Branch 01 Year 5% 4-Jul-19 50,000,000

5 Jute & Jute Products Ruhitpur Branch 01 Years 5% 21-Jan-19 10,000,000
Sub-Total 250,000,000
1 Women Entrepreneur Principal Branch 10 01 Year 1/4/2019 5,000,000
2 Women Entrepreneur Boardbazar Branch 03 Years 5% 19-Oct-19 666,667
3 Women Entrepreneur Mugrapara Branch 05 Years 5% 16-Nov-21 360,000
4 Women Entrepreneur Sylhet Branch 01 Year 5% 10-Apr-23 450,000
5 Women Entrepreneur Sylhet Branch 05 Year 5% 19-Mar-18 1,500,000
6 Women Entrepreneur Barisal Branch 05 Years 5% 23-Sep-20 2,500,000
7 Women Entrepreneur Rajshahi Branch 01 Year 5% 8-Jan-18 5,000,000
8 Women Entrepreneur Bhulta Branch 01 Year 5% 10-Apr-19 1,500,000
9 Women Entrepreneur Rajshahi Branch 01 Year 5% 4-Jan-19 1,500,000
10 Women Entrepreneur Bhulta Branch 05 Year 5% 10-Apr-23 425,000
Sub-Total 18,901,667
1 Solar Energy- Green Finance Hemayetpur Branch 2 03 Years 5% 4-Feb-19 1,812,420
2 Solar Energy- Green Finance Hemayetpur Branch 03 Years 5% 4-Feb-20 2,727,274
Sub-Total 4,539,694
1 Effluent Treatment Plant Chatkhil Branch 1 05 Years 5% 21-Dec-23 2,272,727
Sub-Total 2,272,727
1 Agri Mawna Branch 1 05 Years 5% 21-Dec-23 4,500,000
Sub Total 4,500,000
Grand Total 299,272,137

Annexure-G

Schedule of Property, Plant & Equipment (Accounting Purpose)
Assets Depreciation
Sl
Properties & Assets Addition Disposal Addition Disposal Book Value
NO. Opening Closing Rate of Opening
during the during the during the during the Closing Balance
Balance Balance Depreciation Balance
la year year year year
1 Land, Building and Construction - - - 2.50% - - -
2 Furniture and fixtures 276,011,070 52,682,954 328,694,024 10.00% 67,410,648 31,878,344 99,288,992 229,405,033
nk
3 Equipment and Machinery 272,685,453 42,540,130 - 315,225,583 20.00% 127,445,311 59,613,054 - 187,058,365 128,167,217
4 Computer and Computer Equipment 160,147,984 12,133,981 172,281,965 20.00% 120,328,115 24,282,121 144,610,236 27,671,729
ab
5 Intangible Assets/Bangladesh Made 136,380,707 20,645,949 157,026,657 20.00% 64,406,471 24,643,520 89,049,991 67,976,666
Computer Software
6 Motor Vehicles 27,250,000 19,600,000 46,850,000 20.00% 18,889,166 6,329,997 25,219,163 21,630,837
d.
7 Professionals and Reference Books 23,370 -
c 23,370 20.00% 17,031 4,674 21,705 1,666
8 Leased Assets: Motor Vehicle 27,106,624 - 27,106,624 20.00% 23,187,340 3,919,278 27,106,618 6
om
Total 899,605,208 147,603,015 - 1,047,208,223 421,684,081 150,670,988 - 572,355,069 474,853,154
NRBC Bank
249
250
Annexure-H
Schedule of Property, Plant & Equipment (Tax Purpose)
Assets Depreciation/Amortization
Annual Report 2018

Sl Addition Disposal Addition Disposal
Properties & Assets Opening Closing Rate of Opening Closing Book Value
NO. during the during the during the during the
Balance Balance Depreciation Balance Balance
year year year year
1 Land, Building and Construction - - - 2.50% - - - -
2 Furniture and fixtures 276,011,070

la 52,682,954 328,694,024 10.00% 74,385,933 25,430,809 99,816,742 228,877,282
3 Office Equipment and Machinery 272,685,453 42,540,130 - 315,225,583 10.00% 75,212,173 24,001,341 - 99,213,514 216,012,068
4 Computer and Computer Equipment 160,147,984 12,133,981 172,281,965 30.00% 119,590,980 15,807,295 135,398,276 36,883,689
nk
5 Intangible/Bangladesh Made Computer 136,380,707 20,645,949 157,026,657 50.00% 108,168,052 24,429,302 132,597,354 24,429,302
Software
6 Motor Vehicles 27,250,000 19,600,000 46,850,000 20.00% 15,165,093 6,336,981 21,502,075 25,347,925
ab
7 Professionals and Reference Books 23,370 - 23,370 30.00% 17,759 1,683 19,442 3,928
8 Leased Assets: Motor Vehicle 27,106,624 - 27,106,624 20.00% 16,618,987 2,097,527 18,716,514 8,390,110
Total 899,605,208 147,603,015 - 1,047,208,223 409,158,978 98,104,940 - 507,263,918 539,944,305

d.
c om
Annexure -I (A)

Detailed of Risk Weighted Assets on Solo Basis under Basel III as at 31 December 2018
2018 2017
Risk Weighted Assets
(RWA) for Risk Weighted Risk Weighted
Exposure Exposure
Asset Asset
A. Credit Risk 67,017,669,584 46,026,899,504 58,427,557,371 457,632,112,330
On- Balance Sheet
61,574,341,338 40,929,881,189 53,066,014,525 39,581,959,421
(as shown below)
Off-Balance Sheet
5,443,328,246 5,097,018,315 5,361,542,847 6,181,252,910
(as shown below)
B. Market Risk 1,902,043,763 751,527,905
C. Operational Risk 4,507,604,674 3,276,523,406
Total: RWA (A+B+C) 67,017,669,584 52,436,547,941 58,427,557,371 461,660,163,641
Credit Risk - On Balance Sheet Items
om
2018
SL Exposure Type Risk Weighted
Exposure Rating Risk Weigh
Asset
a Cash and Cash Equivalents 1,175,893,435 0% -
b Claims on Bangladesh Government and
c 8,263,254,440 0% -
Bangladesh Bank
d.
c Claims on other Sovereigns & Central Banks* - 50% -
d Claims on Bank for International Settlements, - 0% -
ab
International
Monetary Fund and European Central Bank
e Claims on Multilateral Development Banks - 0% -

(MDBs):
nk
i. IBRD,IFC,ADB,AFDB,EBRD,IADB,EI- -
B,EIF,NIB,CDB,IDB,CEDB
ii. Others MDBs - 1 20% -
la
- 2,3 50% -
- 4,5 100% -
- 6 150% -
- Unrated 50% -
f Claims on Public Sector Entities (other than - 1 20% -
Government) in Bangladesh - 2,3 50% -
- 4,5 100% -
- 6 150% -
- Unrated 50% -
g Claims on Banks and Non-bank Financial Insti- -
tution (NBFI):
i) Original maturity over 3 months 727,292,615 1 20% 145,458,523.09
1,441,466,847 2, 3 50% 720,733,423.31
31,890,334 4, 5 100% 31,890,333.96
- 6 150% -
46,619,293 Unrated 100% 46,619,293.34
ii) Original Maturity Up to 3 months 2,866,114,342 20% 573,222,868.37
NRBC Bank 251

2018
Asset
h Claims on Corporate (excluding equity expo- 2,765,835,443 1 20% 553,167,088.57
sure) 6,027,289,722 2 50% 3,013,644,860.80
8,810,371,984 3, 4 100% 8,810,371,984.31
- 5, 6 150% -
9,192,178,433 Unrated 125% 11,490,223,040.98
i Claim on SME - SME 1 20% -
1,547,159,134 SME 2 40% 618,863,653.73
900,123,347 SME 3 60% 540,074,008.47
- SME 4 80% -
- SME 5 120% -
- SME 6 150% -
1,584,198,028 Unrated (Small 75% 1,188,148,521.16
om
Enterprise &
<BDT 3.00m)
4,728,796,166 Unrated (Small 100% 4,728,796,165.51
enterprise
having ≥ BDT
3.00m & medi-
c um enterprise)
d.
j Claims under Credit Risk Mitigation - PSE -
25,701,879 Banks & NBFIs -
1,358,551,117 Corporate 393,799,288
ab
1,900,656,331 Retail & Small 70,910,997

53,686,239 SME 37,595,533
4,741,961 Consumer -
Finance
nk
5,766,592 Residential 3,513,152

property
6,465,546 Commercial 411,733
la
Real State
k Claim categories as retail portfolio (Excluding 1,683,843,146 75% 1,262,882,359.29
SME, Consumer Finance & Staff loan) Upto 1
Crore
l Consumer Loan 232,013,798 100% 232,013,797.53
m Claims fully secured by residential property 811,670,467 50% 405,835,233.74
n Claims fully secured by commercial real estate 1,668,752,019 100% 1,668,752,018.61
o 1. Past Due Claims (Risk weights are to be -
assigned net of specific provision):
Where Specific provisions are less than 20 1,915,381,866 150% 2,873,072,799.33
percent of the outstanding amount of the past
due claim
Where Specific provisions are no less than 20 44,626,730 100% 44,626,730.24
due claim
Where Specific provisions are more than 50 - 50% -
due claim

2018
Asset
o 2. Claims fully secured against residential prop- 50,835,544 100% 50,835,543.76
erty that are past due for more than 60 days
and/or impaired specific provision held there-
against is less than 20 percent of outstanding
amount
3. Loans & Claims fully secured against residen- - 75% -
tial property that are past due for more than
60 days and/or impaired and specific provision
held there-against is more than 20 percent of
outstanding amount
p Capital Market Exposure 12,156,246 125% 15,195,307.51
q Investment in Equity and Regulatory Capi- 402,884,627 125% 503,605,783.50
tal Instruments issued by other banks and
Mercahant Bank/Brokerage Houses/Exchange
Houses which are not listed in Stock Exchange
om
(other than those deducted from capital) held
in banking book
r Investments in Venture Capital - 150% -
s Investments in premises, plant and equipment 474,853,154 100% 474,853,154.05
and all other fixed assets
t
c
Claims on all fixed assets under operating lease - 100% -
d.
u All other Assets -
i. Claims on GoB & BB - 0% -
ii. Staff Loan/Investment 478,133,150 20% 95,626,629.93
ab
iii. Cash Item in process of Collection - 20% -

iv. Claim on Offshore Banking Unit (OBU) - 100% -
v. Other Assets (Not specified above) ( Net of 335,137,363 100% 335,137,362.53
Specific Provision, If any)
nk
Total 61,574,341,338 40,929,881,189
Credit Risk - Off Balance Sheet items

la
2018
Asset
a Claims on Bangladesh Government (Other than - 0% -
PSEs) and Bangladesh Bank
b Claims on other Sovereigns & Central Banks* -
c Claims on Bank for International Settlements, - 0% -
International
Monetary Fund and European Central Bank
d Claims on Multilateral Development Banks

(MDBs):
i. IBRD, IFC, ADB, AfDB, EBRD, IADB, EIB, EIF, - -
NIB, CDB, IDB, CEDB
ii. Other MDBs - 1 20% -
- 2, 3 50% -
- 4, 5 100% -
- 6 150% -
- Unrated 50% -
NRBC Bank 253

2018
Asset
e Claims on Public Sector Entities (other than - 1 20% -
Government) in Bangladesh - 2, 3 50% -
- 4, 5 100% -
- 6 150% -
- Unrated 50% -
f Claims on Banks:
i) Maturity over 3 months - 1 20% -
- 2, 3 50% -
- 4, 5 100% -
- 6 150% -
- Unrated 100% -
ii) Maturity less than 3 months - 20%
om
g Claims on Corporate 83,078,774 1 20% 16,615,755
1,231,797,621 2 50% 615,898,811
997,303,155 3, 4 100% 997,303,155
c - 5, 6 150% -
2,235,156,261 Unrated 125% 2,793,945,326
h Claims against retail portfolio (excluding SME & 82,078,278 75% 61,558,708
d.
consumer loan)
i Claim On SME - SME 1 20% -
193,495,148 SME 2 40% 77,398,059
ab
81,642,248 SME 3 60% 48,985,349

- SME 4 80% -
- SME 5 120% -
nk
- SME 6 150% -
213,854,437 Unrated (Small 75% 160,390,827
Enterprise &
<BDT 3.00m)
la
324,922,325 Unrated (Small 100% 324,922,325

enterprise
having ≥ BDT
3.00m & medi-
um enterprise)
j Consumer Finance - 100% -
k Claims fully secured by residential property - 50% -
l Claims fully secured by commercial real estate - 100% -
m Investments in venture capital - 150% -
n All other assets - 100% -
Total 5,443,328,246 5,097,018,315

Annexure-I (B)
Detailed of Risk Weighted Assets on Consolidated basis under Basel III as at 31 December 2018
2018 2017
Risk Weighted Assets (RWA) for Risk Weighted Risk Weighted
Exposure Exposure
Asset Asset
A. Credit Risk 67,050,548,210 45,983,921,314 58,433,197,977 45,735,114,792
On- Balance Sheet (as shown below) 61,607,219,964 40,886,902,999 53,071,655,131 39,553,861,882
Off-Balance Sheet (as shown below) 5,443,328,246 5,097,018,315 5,361,542,847 6,181,252,910
B. Market Risk 2,046,819,473 888,062,241
C. Operational Risk 4,534,555,423 3,299,538,585
Total: RWA (A+B+C) 67,050,548,210 52,565,296,210 58,433,197,977 49,922,715,617
Credit Risk - On Balance Sheet Items
om
2018
Asset
a Cash and Cash Equivalents 1,175,923,504 0% -
b Claims on Bangladesh Government 8,263,254,440 0% -
and Bangladesh Bank
c
d.
c Claims on other Sovereigns & Central - 50% -
Banks*
d Claims on Bank for International Set- - 0% -
tlements, International
ab
Monetary Fund and European Central

Bank
e Claims on Multilateral Development - 0% -

nk
Banks (MDBs):
i. IBRD,IFC,ADB,AFDB,EBRD,IADB,EI-
B,EIF,NIB,CDB,IDB,CEDB
la
ii. Others MDBs - 1 20%

- 2,3 50%
- 4,5 100%
- 6 150%
- Unrated 50%
f Claims on Public Sector Entities (other - 1 20%
than Government) in Bangladesh - 2,3 50%
- 4,5 100%
- 6 150%
- Unrated 50%
g Claims on Banks and Non-bank Finan-
cial Institution (NBFI):
i) Original maturity over 3 months 727,292,615 1 20% 145,458,523
1,441,466,847 2, 3 50% 720,733,423
31,890,334 4, 5 100% 31,890,334
- 6 150% -
46,619,293 Unrated 100% 46,619,293
ii) Original Maturity Up to 3 months 2,911,602,259 20% 582,320,452
NRBC Bank 255

2018
Asset
h Claims on Corporate (excluding equity 2,765,835,443 1 20% 553,167,089
exposure) 6,027,289,722 2 50% 3,013,644,861
8,810,371,984 3, 4 100% 8,810,371,984
- 5, 6 150% -
9,192,178,433 Unrated 125% 11,490,223,041
i Claim on SME - SME 1 20% -
1,547,159,134 SME 2 40% 618,863,654
900,123,347 SME 3 60% 540,074,008
- SME 4 80% -
- SME 5 120% -
- SME 6 150%
1,584,198,028 Unrated (Small 75% 1,188,148,521
om
Enterprise & <BDT
3.00m)
4,728,796,166 Unrated (Small 100% 4,728,796,166
enterprise having
c ≥ BDT 3.00m &
medium enter-
prise)
d.
j Claims under Credit Risk Mitigation - PSE -
25,701,879 Banks & NBFIs -
1,358,551,117 Corporate 393,799,288
ab
1,900,656,331 Retail & Small 70,910,997

53,686,239 SME 37,595,533
4,741,961 Consumer Fi- -
nk
nance
5,766,592 Residential prop- 3,513,152
erty
6,465,546 Commercial Real 411,733
la
State
k Claim categories as retail portfolio 1,742,340,191 75% 1,306,755,143
(Excluding SME, Consumer Finance &
Staff loan) Upto 1 Crore
l Consumer Loan 232,013,798 100% 232,013,798
m Claims fully secured by residential 811,670,467 50% 405,835,234
property
n Claims fully secured by commercial 1,668,752,019 100% 1,668,752,019
real estate
o 1. Past Due Claims (Risk weights are to
be assigned net of specific provision):
Where Specific provisions are less 1,915,381,866 150% 2,873,072,799
than 20 percent of the outstanding
amount of the past due claim
Where Specific provisions are no less 44,626,730 100% 44,626,730
Where Specific provisions are more - 50% -

2018
Asset
o 2. Claims fully secured against resi- 50,835,544 100% 50,835,544
dential property that are past due for
more than 60 days and/or impaired
specific provision held there-against
is less than 20 percent of outstanding
amount
3. Loans & Claims fully secured against - 75% -
residential property that are past
due for more than 60 days and/or
impaired and specific provision held
there-against is more than 20 percent
of outstanding amount
p Capital Market Exposure 12,156,246 125% 15,195,308
q Investment in Equity and Regulatory 303,636,019 125% 379,545,024
Capital Instruments issued by other
banks and Mercahant Bank/Brokerage
om
Houses/Exchange Houses which are
not listed in Stock Exchange (other
than those deducted from capital)
held in banking book
r Investments in Venture Capital c - 150% -
s Investments in premises, plant and 481,956,568 100% 481,956,568
equipment and all other fixed assets
d.
t Claims on all fixed assets under oper- - 100% -
ating lease
u All other Assets
ab
i. Claims on GoB & BB - 0% -

ii. Staff Loan/Investment 478,133,150 20% 95,626,630
iii. Cash Item in process of Collection - 20% -
nk
iv. Claim on Offshore Banking Unit - 100% -

(OBU)
v. Other Assets (Not specified above) ( 356,146,151 100% 356,146,151
Net of Specific Provision, If any)
la
Total 61,607,219,964 40,886,902,999

Credit Risk - Off Balance Sheet items
2018
Exposure Asset
a Claims on Bangladesh Government - 0% -
(Other than PSEs) and Bangladesh
Bank
b Claims on other Sovereigns & -
Central Banks*
c Claims on Bank for International - 0% -
Settlements, International
Monetary Fund and European
Central Bank
d Claims on Multilateral Development

Banks (MDBs):
i. IBRD, IFC, ADB, AfDB, EBRD, IADB, - -
EIB, EIF, NIB, CDB, IDB, CEDB
NRBC Bank 257

2018
Exposure Asset
d ii. Other MDBs - 1 20% -
- 2, 3 50% -
- 4, 5 100% -
- 6 150% -
- Unrated 50% -
e Claims on Public Sector Entities (other - 1 20% -
than Government) in Bangladesh
- 2, 3 50% -
- 4, 5 100% -
- 6 150% -
- Unrated 50% -
f Claims on Banks:
i) Maturity over 3 months - 1 20% -
om
- 2, 3 50% -
- 4, 5 100% -
- 6 150% -
c - Unrated 100% -
ii) Maturity less than 3 months - 20%
g Claims on Corporate 83,078,774 1 20% 16,615,755
d.
1,231,797,621 2 50% 615,898,811
997,303,155 3, 4 100% 997,303,155
ab
- 5, 6 150% -
2,235,156,261 Unrated 125% 2,793,945,326
h Claims against retail portfolio (exclud- 82,078,278 75% 61,558,708
ing SME & consumer loan)
nk
i Claim On SME - SME 1 20% -

193,495,148 SME 2 40% 77,398,059
81,642,248 SME 3 60% 48,985,349
la
- SME 4 80% -
- SME 5 120% -
- SME 6 150% -
213,854,437 Unrated (Small 75% 160,390,827
Enterprise & <BDT
3.00m)
324,922,325 Unrated (Small 100% 324,922,325
enterprise having
≥ BDT 3.00m &
medium enter-
prise)
j Consumer Finance - 100% -
k Claims fully secured by residential - 50% -
property
l Claims fully secured by commercial - 100% -
real estate
m Investments in venture capital - 150% -
n All other assets - 100% -
Total 5,443,328,246 5,097,018,315

Annexure-J
Related Party Disclosure
The parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise
significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they
are subject to common control or significant influence. Related party informations are given below:
i. Directors’ interest in different entities
Percent-
Name of the firms/companies in age of
Status Experi- which interested as Proprietor, Status as in Holding/
Sl Name of Director with Bank ence Partner, Director, Managing Agent, Column E Interest
Guarantor, Employee, etc. in the
concern
A B C D E F G
1 Mr. S M Parvez Chairman 21 Years a. OY STN Electronics Ltd., a. CEO and a. 100%
Tamal Nokkalanniemi 1C, 02230 President
Espoo, Finland.
b. System Invest Trekhprudnaya, c. Director c. 95%
11/13, Off 25, Moscow, Russia
om
c. R & M , Kurtskaya, Moscow, b. Owner b. 63%
Russia
d. Telexia Oy ,Finland d. Board d. 33%
Member
e. Makia Fashion Clothing, e. Shareholder e. 5%
c Finland
d.
f. Bangla Grow Agro Ltd. f. Shareholder f. 20%
Damarpara, Jamgram,
Kahaloo, Bogura,
Bangladesh
ab
g. Turuntie 40 Oy, Finland g. Shareholder g. 15%

2 Mr. Mohammad Vice 22 Years Marafie Kuwaitia Group, Sabhan CEO and 49%
Shahid Islam, MP Chairman Industrial Area, Next to KNPC fuel Partner
Marketing Dept., Sabhan , State of
nk
Kuwait
3 Mr. Abu Bakr Director 15 Years a. Baizid Steel Industries Ltd., a. MD a) 59.50%
Chowdhury Rahima Center, 4th Floor,
1618/1839 CDA Avenue,
la
Nasirabad, Chittagong.
b. CSS Corporation (BD) Ltd., b. MD b. 40%
Rahima Center, 4th Floor,
c. CSS Power Ltd., Rahima c. MD c. 80%
Center, 4th Floor, 1618/1839
CDA Avenue, Nasirabad,
Chittagong.
d. ABC Marks Holdings Ltd., d. MD d. 50%
Rahima Center, 4th Floor,
e. ATN News Ltd., Hassan Plaza, e. Shareholder e. 10%
53 Kawran Bazar,Dhaka-1215
f. ABC Associates Ltd., Rahima f. MD g. 2.50%
Center, 4th Floor, 1618/1839
CDA Avenue, Nasirabad,
Chittagong.
NRBC Bank 259

Percent-
concern
A B C D E F G
4 Mr. Rafikul Islam Director 25 Years a. Bonanza,2nd Magietralnaya a. President a. 80%
Mia Arzoo 14 G,Moscow, Russia.
b. Mela, 2nd Magietralnaya,14 b. MD b. 89.5%
G, Moscow, Russia.
c. Lisichka,St. Bibirovskaya 2/1, c. Director c. 67%
Moscow, Russia.
D JSC Bibirevo, St. Bibirobskaya d. Director d. 94%
2/1Moscow, Russia
5 Mr. Mohammed Director 16 Years A IPE Group (Holdings) Limited, 73, a. Managing a. 100%
Adnan Imam, New Bond Street, Mayfair, London, Director
FCCA W1S 1RS, UK.
om
B IPE Ventures Limited, 73, New Bond b. Shareholder b. 100%
Street, Mayfair, London, W1S 1RS,
UK.
C Genex Infosys Ltd. House # 9, c. Managing c.10%
c Road-25/A, Block-A, Banani, Director
Dhaka-1213, Bangladesh.
D Green & Red Technologies Limited, d. Chairman & d.1%
d.
House # 9, Road-25/A, Block-A, Representative
Banani, Dhaka-1213, Bangladesh. Director of
Genex Infosys
Limited
ab
E Brainstation-23 Limited, Plot 2 e. Representative e.10%

(8th Floor), Bir Uttam AK Khandaker Director of
Road, Mohakhali C/A, Dhaka-1212 Oracle Services
Limited
nk
F Denim Asia Limited,117/A, Tejgaon f. Director f.21%

Industrial Area, Dhaka-1208
G AWR Developments (BD) g. Managing g.98%
Limited,House # 9, Road-25/A, Director
Block-A, Banani, Dhaka-1213,
la
Bangladesh.
H AWR Real Estate Limited, House h. Managing h.50%
# 9, Road-25/A, Block-A, Banani, Director
I IPE Capital Limited, House # 9, i. Chairman i. 45%
Road-25/A, Block-A, Banani,
J Oracle Services Ltd. House # 9, j. Managing j. 50%
Road-25/A, Block-A, Banani, Director
K Cogent Bangladesh LimitedHouse k. Managing k. 5%
# 9, Road-25/A, Block-A, Banani, Director
L Adverto Footwear LimitedHouse l. Representative l. 15%
# 9, Road-25/A, Block-A, Banani, Director of
Dhaka-1213, Bangladesh. Oracle Services
Limited
M Socian Limited m. Representative m. 5.43%
House – 28,Road – 20, Director of
Block-K, Banani, Dhaka. Oracle Services
Limited

Percent-
concern
A B C D E F G
6 Mr. Mohammed Director 25 Years a. Al Haramain Trading LLC, a. Director a. 24%
Oliur Rahman PO Box: 13754, Dubai, UAE.
b. Al Haramain Perfumes MFG & b. Shareholder b.20%
Oudh Processing Industry LLC,
PO Box: 1885, Ajman, UAE.
c. Al Haramain Perfumes LLC, c. Shareholder c.30%
Dubai, UAE.
d. Best in Fragrance, Hilton tower, d. Shareholder d.30%
Gate#3, Shops#6-7, PO Box: 18083,
Holy Makkah, Kingdom of Saudi
Arabia
om
e. Noor Al Haramain LLC, e. Shareholder e. 24%
PO Box: 13754, Dubai, UAE.
f. Al Haramain Hospital Pvt. Ltd., f. Vice
Kazi Tower, Samata-10, Bishwa Chairman
Road, Chali Bandar, Subhani Ghat,
c Sylhet-3100, Bangladesh.
7 Mr. Loquit Ullah Director 34 Years Store Alamin SNC Managing 100%
Via Principe Amedia, 134-136, Rome, Italy. Director
d.
8 Mr. Mohammed Director 15 Years a. Al Majal Car Wash and Maint, a. MD a.50%
Nazim Al Maliha Street, Industrial Area,-10,
Near Gico, PO: 29037, Sharjah, UAE.
ab
b. Al Badar Car Washing Station, New b. MD b.100%

I/A, PO Box-1267, Ajman, UAE.
c. Dar Al Madina Washing Station, c. MD c.100%
Jouraf I/A-1, Near China Mall,
nk
Ajman, UAE.
d. Dar Al Salam Car Washing Station, d. MD d.100%
Ajman, UAE.
e Al Ardh Al Thahabiah Trucks & e. MD e.50%
la
Heavy Machines Maint. Center,

Sharjah, UAE.
f. Lucent Developments Limited, f. Director f. 20%
Madina Tower,(6th Floor), 805/A,
CDA, Avenue, GEC Circle, Khulshi,
Chittagong, Bangladesh
9 Dr. Nuran Nabi Director 10 Years Plainsboro Township, New Jersey, USA Councilman None.
10 Mr. Mohammed Director 17 Years A ATN News Ltd., Hasan Plaza, 53, a. Director a. 20%
Manzurul Islam Kawran Bazar, Dhaka.
B iPay Systems Limited, 52 Gulshan d. Director d. 5%
Avenue, Dhaka-1212
C DBC News Dhaka Bangla Media & b. Director & b. 10%
Communications Ltd. Ahsan Tower, CEO
76 Bir Uttam A.K Khandakar Sarak,
Dhaka, Bangladesh.
D NRBC Bank Securities Limited, 114 c. Sponsor- c. 0.05%
Motijheel C/A, Dhaka Shareholder
NRBC Bank 261

Annexure-J1
Related Party Transactions
Related party transaction is a transfer of resources, services, or obligations between related parties, regardless of whether a price
is charged as per BAS 24.The Bank in normal course of business had transactions with other entities that fall within the definition of
‘Related Party’ as contained in Bangladesh Accounting Standards (BAS)-24 (Related party disclosures) and as defined in the BRPD
circular # 14, issued by Bangladesh Bank on 25 June 2003.
The significant Related party transactions during the year was as follow-
Letting out of Premises
Name of the Representing Director Nature of interest Nature of Premises Financial involvement
Organization of Director of the agreement with the agreement
Organization/Property
- Engr. Farasath Ali, Owner Rental Munshi Bazar Monthly Rent
Representative Director of Agreement Br Tk.16,000.00 (2000 Sft
NRBC Bank Ltd. @ Tk. 8.00)
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- Engr. Syed Munsif Ali Owner Rental Sylhet Uposhahar Monthly Rent Tk.1.50
Representative Director of Agreement Br lac (4000 Sft @ Tk.
NRBC Bank Ltd. 37.50)
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NRBC Bank 263

Independent Auditor’s Report
To
The Shareholders of NRBC Bank Securities Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the Financial Statements of NRBC Bank Securities Limited (“the company”), which comprise the
statement of financial position as at December 31, 2018, and the statement of comprehensive income, statement
of changes in equity and statement of cash flows for the period then ended, and notes to the Financial Statements,
including a summary of significant accounting policies.
In our opinion, the accompanying Financial Statements give true and fair view, in all material respects, of the financial
position of the company as at December 31, 2018, and its financial performance and its cash flows for the period then
ended in accordance with International Financial Reporting Standards (IFRS).
Basis for Opinion
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We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report. We are independent of the company in accordance with the International Ethics Standards
Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our ethical
responsibilities in accordance with the IESBA code. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Emphasis of Matter
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d.
We draw attention to Note 5 read with Annexure-2 section D of the Financial Statements, where company explain the
valuation procedure of investment in TREC & Share of DSE and effects of 25% of DSE share sold to the Shenzhen stock
exchange and Shanghai stock exchange Consortium as per Demutualization Act 2013. Our opinion is not modified in
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respect of this matter.

Other Information
Management is responsible for the other information. The other information comprises all of the information in the
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Annual report other than the Financial Statements and our auditor’s report thereon.
Our opinion on the Financial Statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
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In connection with our audit of the Financial Statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the Financial Statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the Financial Statements in accordance with
IFRSs, and for such internal control as management determines is necessary to enable the preparation of consolidated
Financial Statements that are free from material misstatement, whether due to fraud or error.
In preparing the Financial Statements, management is responsible for assessing the Group’s ability to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these Financial Statements
As part of an audit in accordance with ISAs, we have exercised professional judgment and maintained professional
scepticism throughout the audit. We also have:
• Identified and assessed the risks of material misstatement of the Financial Statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtained an understanding of internal control relevant to the audit 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 bank’s internal control.
• Evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
• Concluded on the appropriateness of management’s use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
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cast significant doubt on the Group’s ability to continue as a going concern. If we concluded that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the bank to cease to continue as a going concern.
c
• Evaluated the overall presentation, structure, and content of the Financial Statements, including the
disclosures, and whether the Financial Statements represent the underlying transactions and events in a
d.
manner that achieves fair presentation.
• Obtained sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the Financial Statements. We are responsible for the
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direction, supervision and performance of the bank audit. We remain solely responsible for our audit opinion.
We communicated with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
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identify during our audit.

Report on Other Legal and Regulatory Requirements
In accordance with the Companies Act 1994 and the Securities and Exchange Rules 1987, we also report the following:
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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 accounts as required by law have been kept by the Company so far as it
appeared from our examination of these books;
c) the consolidated and the separate statements of financial position and statement of comprehensive income
dealt with by the report are in agreement with the books of accounts and returns.
-SD-
Place: Dhaka Masih Muhith Haque & Co.
Date: March 28, 2019 Chartered Accountants
NRBC Bank 265

Statement of Financial Position
At Dec 31, 2018 At Dec 31, 2017

Properties & Assets Notes
Taka Taka
Non Current Assets

Property, Plant & Equipment 4 7,103,414 9,307,123
Investments
Investment in Share & Stock 5 335,197,607 369,008,495
Loan and Advances :

Margin Loan 6 70,653,291 39,766,748
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Current Assets:
Advances, Deposits, Prepayments, Receivables 7 21,644,979 19,772,254
Cash and Cash Equivalents 8 82,969,128 15,545,967
104,614,106 35,318,221
Total Assets c 517,568,418 453,400,587
Shareholders’ Equity 406,704,090 423,395,490

d.
Share Capital 9 400,000,000 400,000,000
Retained Earnings 10 6,704,090 23,395,490
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Current Liabilities 110,864,328 30,005,097

Other Liabilities 11 74,308,081 30,005,097
Payable to Parents Company 12 - -
Overdraft NRBC Bank Ltd 13 36,556,246
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Total equity and Liabilities 517,568,418 453,400,587
The annexed notes form an integral part of the Financial Statements.

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-SD- -SD- -SD-

Shamsuzzaman Uzzal Rafikul Islam Mia Arzoo Mohammad Shahid Islam
Chief Executive Officer (CC) Director Chairman
-SD-
Date: March 28 , 2019 Chartered Accountants

Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended December 31, 2018
2018 2017
Particulars Notes
Taka Taka
Operating income
Interest income 14 10,200,726 5,955,684
Interest Expenses 15 251,326 -
Net interest income 9,949,400 5,955,684
Brokerage commission 16 21,933,518 23,999,019
Investment Income 17 9,366,899 22,846,383
Other operating income/loss 18 1,350,858 749,300
Total operating income 42,600,674 53,550,386
Operating expenses
Salary & Allowances 19 16,773,112 13,824,595
Rent, Taxes, Insurance, Electricity, etc. 20 5,952,907 5,942,735
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Legal/Professional/Preliminary Expenses 21 73,310 65,940
Stamp, Postage & Telecommunication etc. 22 910,362 753,756
Stationery, Printing, Advertisement, etc. 23 438,648 1,140,151
Board of Directors' Meeting Expense 24 112,100 404,150
Audit Fee c 46,000 50,000
Other Financial Expenses 25 68,097 100,765
Depreciation & Repair of Property, Plant & Equipment 26 2,554,328 1,981,918
d.
Other Expenses 27 771,019 1,194,128
Total Operating Expenses 27,699,883 25,458,139
Profit/(Loss) before provision 14,900,791 28,092,248
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Provision against diminuation of Share 28 7,389,323 5,741,327

Total Provision 7,389,323 5,741,327
Profit/(Loss) before Taxation 7,511,468 22,350,921
Provision for Taxation 4,202,868 5,701,555
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Current Tax 29 4,400,911 5,516,686

Deferred Tax 30 (198,043) 184,869
Profit/Loss after taxation 3,308,600 16,649,366
Other comprehensive income - -
3,308,600 16,649,366
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Total comprehensive income/(loss)

Earnings Per Share (EPS) 31 0.08 0.42
-SD- -SD- -SD-

-SD-
NRBC Bank 267

Statement of Cash Flows
For the year ended December 31, 2018
At Dec 31, 2018 At Dec 31, 2017
Particulars
Taka Taka
A. Cash flows from operating activities
Cash received from :
Interest income 10,200,726 5,955,684
Investment Income 9,366,899 22,846,383
Brokerage Commission Receipts 21,933,518 23,999,019
Receipts from Other operating activities 1,350,858 749,300
42,852,000 53,550,386
Cash payment to :
Interest expenses 251,326 -
Paid to the Employee 16,410,722 13,940,445
Legal/Preliminary Expense 73,310 65,940
Audit Fees 50,000 17,250
Payments to suppliers/Service providers 4,040,523 7,581,123
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Paid for Other Operating Activities 1,174,237 1,706,585
22,000,119 23,311,343
Operating profit before changes in operating assets & liabilities 20,851,881 30,239,043
Increase/decrease in operating assets and liabilities
Increased/(Decreased) of Deposit from client aganist Share purchased 29,106,028 (44,603,945)
Increased/(Decreased) of Deposit from client aganist IPO Fund - (30,065,000)
Loan/Received to/from Parents Company - (631,926)
(Increase) / Decrease in Operating Assets
c 29,106,028 (75,300,871)
Net cash from/(used in) operating activities (A) 49,957,909 (45,061,828)
d.
Cash used in Investing Activities
Purchase of Property, Plant and Equipment (142,616) (6,046,325)
Investment in Shares/Securities 33,810,889 (15,584,495)
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Advances, deposits, prepayments, Receivables (1,872,724) 21,017,841

Loans and Advances (30,886,543) (39,402,699)
Net cash used in Investing Activities (B) 909,006 (40,015,678)
Cash flows from Financing Activities
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Share Capital - -
Loan From Parent Company (NRBC Bank Ltd)/OD facility 36,556,246 -
Dividend Paid (20,000,000) -
Net cash flow from financing activities (C) 16,556,246 -
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Net Surplus/(Deficit) in Cash and Bank Balances for the year (A+B+C) 67,423,161 (85,077,506)
Cash and Bank Balance at beginning of the year 15,545,967 100,623,474
Cash & Bank Balance at the end of the year 82,969,128 15,545,968
(*) Cash & Bank Balance:
Cash in Hand 30,069 1,896
Cash at Bank 82,939,059 15,544,072
82,969,128 15,545,968
-SD- -SD- -SD-

-SD-

Statement of Changes in Equity
For the Year Ended December 31, 2018
Paid up Capital Retained Earnings Total

Particulars
Taka Taka Taka
Opening Balance at January 01, 2018 400,000,000 23,395,490 423,395,490

Less:Dividend Paid (Dividend @5% for 2017) (20,000,000) (20,000,000)
Net Profit after Tax for the year - 3,308,600 3,308,600
Balance at December 31, 2018 400,000,000 6,704,090 406,704,090
Balance at December 31, 2017 400,000,000 23,395,490 423,395,490
-SD- -SD- -SD-
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Chief Executive Officer Director Chairman
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d.
Place: Dhaka
Date: March 28 , 2019
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NRBC Bank 269

Notes to the Financial Statements
For the period ended 31 December 2018
1.1 Nature of Business Activities
NRBC Bank Securities Limited (the Company), a majority owned subsidiary company of NRBC Bank Limited was incorporated as
a Public limited company in Bangladesh on 20 September 2015 bearing certificate of incorporation no. C-125904/2015 under
the Companies Act 1994 having its registered office at 114 Motijheel Commercial Area, Dhaka - 1000.
1.2 Nature of business
The main objective of the company is to carry on the business of a stock broker and stock dealer that is to be buy, sell and
deal in shares, stocks, debentures and other securities under stock exchange in Bangladesh and/ or elsewhere as well as
to carry on any business as permissible for a broker and dealer duly licensed by the Bangladesh Securities and Exchange
Commission (BSEC).
2.0 Significant accounting policies and basis of preparation of Financial Statements
2.1 Statement of compliance
The Financial Statements of the Company are prepared on a going concern basis under historical cost conversion in
accordance with International Financial Reporting Standards (IFRS)/International Accounting Standards (IAS). The Financial
Statements has also been made in accordance with the Companies Act 1994, the Securities and Exchange Rules 1987, the
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listing Rules of Dhaka Stock Exchange, Guidelines from Bangladesh Bank, other applicable laws and regulations.
NRBC Bank Securities Ltd. was also registered with the Bangladesh Securities and Exchange Commission (BSEC) to act as
Stock Dealer for carrying its own investment in the capital market.
2.2 Use of estimates and judgments c
The preparation of Financial Statements are inconformity with IFRS requires management to make judgments, estimates
and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income
d.
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 periods in which the estimate were made and in
any future periods affected.
2.3 Going Concern Assessment
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The Company has adequate resources to continue in operation for foreseeable future. For this reasons the directors
continue to adopt going concern basis in preparing the Financial Statements. The Probable credit facilities from parents
and Others as well as adequate resources of the Company provide sufficient funds to meet the present requirements of its
businesses and operations in the future.
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2.4 The Financial Statements referred to here comprise

a. Statement of Financial Position
b. Statement of Comprehensive Income
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c. Statement of Cash Flows

d. Statement of Changes in Equity and
e. Notes to the Financial Statements
2.5 Statements of Cashflow
Statement of cash flows is prepared in accordance with the Bangladesh Accounting Standard-7 “Statement of Cash Flows”.
2.6 Reporting period
These Financial Statements cover one calendar year from 1st January to 31st December.
2.7 Functional and presentational currency
The Financial Statements are presented in Bangladeshi Taka, which is the Company’s functional currency.
3.0 Consistency Accounting Policies
The accounting policies set out below have been applied consistently to all periods presented in these Financial Statements.
3.1 Property, Plant and Equipment
Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses,
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.

3.2 Depreciation Policy
Full month’s depreciation has been charged on additions irrespective of date when the related assets are put into use
and no depreciation is charged for the month of disposal. Depreciation is provided at the following rates on straight-line
basis in accordance with BAS 16 over the periods appropriate to the estimated useful lives of the different types of assets:
Categories of Assets Rate of Depreciation (%)

Furniture and fixtures 10
Office Equipments 10
Computer and Accessories 20
Bangladesh Made Computer Software 20
Motor Vehicles 30
Professionals and Reference Books 10
3.3 Investment in TREC (Membership)

Investment in Stock Exchanges for TREC (Membership) are stated at cost. The cost of acquisition of a TREC (Membership) is
the purchase price paid to the previous holder. As per the Demutualization Act, 2013, Trading Right Entitlement Certificate
(TREC) has been allotted 7,215,106 no. of ordinary shares of Dhaka Stock Exchange Limited (DSE).
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In pursuation of Demutualization Act, 2013, Dhaka Stock Exchange sold 25% share holding of 7,215,106 to Strategic
Partner M/s. Shenzhen Stocks & Shanghai Stock Exchange @Tk.21.00 in 2018 and, therefore, holding of is reduced to
5,411,330 shares
3.4 Investment in Securities

Investment in listed securities are to be recognized at cost. Quarterly impairment test will be carried out by comparing
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cost with market price as a whole of its total holdings. In case of diminution of market value compared to cost, provision
will be made on portfolio basis but no unrealized gain will be booked when market value exceeds cost.
d.
3.5 Margin Loan/Loan to Customer
The Company extends margin loan to the portfolio investors at an agreed ratio (between investors deposit and loan
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amount) of purchased securities against the respective investor account as per prescribe Guideline of BSEC. The investors
are to maintain the margin as per set rules and regulations. The margin is monitored on daily basis as it changes due to
change in market price of shares. If the margin falls below the minimum requirement, the investors are required to deposit
additional fund to maintain margin as per rules otherwise the company take necessary steps to bring the margin to the
required level within prescribed guideline of BSEC.
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3.6 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. Deposits are measured at payment value. Prepayments are initially measured at cost.
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After initial recognition, prepayments are carried at cost less charges to income statement.
3.7 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
reporting date. The impact on the account of changes in the deferred tax assets and liabilities have also been recognized
in the statement of comprehensive income as per BAS-12 “Income Taxes
3.8 Provision for Income Tax
Provision for current income tax has been made in compliance with relevant provisions of income tax law 1984 along with
Financial Act, 2018
3.9 Cash and Cash Equivalents
Cash and cash equivalents comprise cash in hand and cash at bank, which are held and available for use by the company
without any restriction and are readily convertible to a known amount of cash and that are subject to an insignificant risk
of change in value.
3.10 Share Capital
Ordinary shares are classified as equity when there is no contractual obligation to transfer cash or other financial assets.
NRBC Bank 271

3.11 Payables
Trade and other payables will be stated at their nominal values.
3.12 Other Liabilities for Expenses
Liabilities are to be recognized for the goods and services received, whether paid or not for those goods and services.
Payables will not interest bearing and are stated at their nominal values.
3.13 Revenue Recognition
Revenue is recognized only when it is probable that the economic benefits associated with the transaction will flow to
the company in accordance with the International Financial Reporting Standard (IFRS) 15 “Revenue from contracts with
customers”
3.13.1 Interest Income
Income from margin loan/bank deposit are recognized on accrual basis. Such income is calculated considering daily margin
loan balance of the respective parties or balances with the banks.
3.13.2 Brokerage Commission

Brokerage commission is recognized as income when selling or buying order executed.
3.13.3 Other Income
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Other income, comprises of service charges and capital gain, is recognized when service rendered and sell process
completed.
3.14 Event after the reporting period
As per BAS - 10 “Events after the Reporting period”, events after the reporting period are those events, favorable and
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unfavourable, that occur between the end of the reporting period and the date when the Financial Statements are
authorized for issue. Two types of events can be identified:
d.
i) those that provide evidence of conditions that existed at the end of the reporting period (Adjusting events after the
reporting period) and
ii) those that are indicative of conditions that arose after the reporting period (Non- adjusting events after the reporting
period).
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There were no material events which have occurred after the reporting period which could affect the values stated in the
Financial Statements expect note mention in 32.
3.15 Related Party Transaction
As per IAS 24 “Related Party Disclosures”, a related party is a person or entity that is related to the entity (i.e. NRBCBSL)
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that is preparing its Financial Statements. Related party transaction is a transfer of resources, services, or obligations
between a reporting entity and a related party, regardless of whether a price is charged as per IAS 24.
Related Parties include the Company’s Directors, key Management Personnel, Associates, Companies under common
directorship etc. as per IAS 24 “Related Party Disclosures”. All transactions involving related parties arising in the normal
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course of business are conducted as arm’s length transactions. Related parties disclousre given in the Note-33
3.16 Authorization of the Financial Statements for Issue
The Financial Statements of the company have been authorized for issue by the Board of Directors’ on 28th March, 2019
of its 16th meeting.
3.17 General
i) Figures relating to previous year/period included in this report have been rearranged, wherever considered necessary.
ii) The figures appearing in these Financial Statements are expressed in Taka currency and rounded off to the nearest Taka unless
otherwise stated.

At Dec 31, 2018 At Dec 31, 2017
Taka Taka
4.00 Property, Plant and Equipment
At Cost
Opening Balance 11,873,852 5,827,527
Add: Addition During the Year 142,616 6,046,325
12,016,468 11,873,852
Less: Accumulated Depreciation 4,913,054 2,566,729
Written Down Value 7,103,414 9,307,123
A Schedule of Property, Plant and Equipment is given in Annexure-1 for Accounting & Tax Purpose
5.00 Investments in Shares and stocks
Quoted Share (Publicly Traded listed with DSE) 74,446,214 72,387,855
Cost of Acquisition of DSE TREC & Share 247,120,683 285,000,000
Share in Lock-in - -
Initial Public Offering (IPO) 3,630,710 1,620,640
Unquoted Shares (Demat Share & approved by SEC) 10,000,000 10,000,000
335,197,607 369,008,495
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A Schedule of Investments in Shares is given in Annexure -2
6.00 Loan and Advances
Margin Loan 70,653,291 39,766,748
70,653,291 39,766,748
This represent amount of loan to the customer against shares purchased under prescribed guideline of BSEC.
7.00
c
Advances, Deposits, Prepayments, Receivables
Security Deposit (Note: 7.01) 200,000 200,000
d.
Advance Income Tax (Note: 7.02) 18,427,121 9,853,814
Advance Others (Note: 7.03) 118,402 298,936
Accounts Receivable (Note: 7.04) 2,899,456 9,419,504
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21,644,978 19,772,254
7.01 Security Deposits
Security Deposit with Central Depository Bangladesh Ltd. (CDBL) 200,000 200,000
200,000 200,000
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7.02 Advance Income Tax

On Turnover 10,123,290 5 ,722,379
On Bank Interest 1,351,943 1,141,116
On Dividend Income 5,026,447 2,974,319
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Advance Tax- Others 31,500 16,000

Advance Tax- Strategic Investment* 1,893,941 -
18,427,121 9,853,814
Gain Tax on Sale of Share (25% i.e. 1,803,777X21 less cost) no. Share sale to Shenzhen Stocks & Shanghai Stock Exchange
@Tk.21.00 Through DSE in 2018 which to be utilized after expiry of 3 (Three) Years as S.R.O No 319 - Ayin/Aykor/2018
Dated Nov-11-2018
7.03 Advance Others
Advance Office Rent 90,000 150,000
Others 28,402 148,936
118,402 298,936
7.04 Accounts Receivable
Dhaka Stock Exchange Ltd. (Settelement A/c) 2,899,456 9,419,504
2,899,456 9,419,504
8.00 Cash and Cash Equivalents
Cash in Hand 30,069 1,896
Cash at Bank (Note: 08.01) 82,939,059 15,544,071
82,969,128 15,545,967
* Cash in hand means cash kept as pettty for maintaining daily regular expenses which adjust preoidcally.
NRBC Bank 273

At Dec 31, 2018 At Dec 31, 2017
Taka Taka
8.01 Cash at Bank
NRB Commercial Bank Limited, Principal Branch(a) 38,195,791 6,082,238
NRB Commercial Bank Limited A/C 0101-360-099 36,457,068 4,821,044
NRB Commercial Bank Limited A/C 0101-360-098 880,715 103,822
NRB Commercial Bank Limited A/C 0101-364-002 858,008 1,157,372
Al-Arafa Islami Bank Limited, Motijheel Branch(b) 44,743,268 9,461,833
Al-Arafa Islami Bank Limited Cus A/C 0021220006396 6,725,555 2,339,299
Al-Arafa Islami Bank Limited Dealer A/C 0021220006385 2,032,397 7,122,534
Al-Arafa Islami Bank Limited Strategic A/C 0021220007836 * 35,985,316 -
Total (a+b) 82,939,059 15,544,071
According to Demutualization Act 2013, DSE was agreed to sale 25% share to Strategic partner to Shenzhen Stock Exchange
& Shanghai Stock Exchange. At the same time National Board of Revenue (NBR) issued Gm.Avi.I bs 319 AvBb/ AvqKi/2018-
Income Tax Ordinance 1984 dated October 30, 2018 stated that all proceed of selling to Strategic partner will be operated
in BO Account 1205950066923412. Therefore, company could not recognized as capital gain due to all amount being block
to the aforesaid BO Account 1205950066923412 untill completetiion of three year.
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9.00 Share Capital
Authorized Capital
100,000,000 Ordinary Shares of Taka 10.00 each 1,000,000,000 1,000,000,000
Issued, Subscribed and Paid-up Capital
40,000,000 Ordinary Shares of Taka 10.00 each fully paid
c 400,000,000 400,000,000
Shareholding position at December 31, 2018 is as follows:

d.
Name of Shareholders No. of shares
NRB Commercial Bank Limited 36,000,000
Dr. Toufique Rahman Chowdhury 200,000
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Mr. Md. Shahidul Ahsan 200,000

Mr. Mohammed Mahtabur Rahman 200,000
Ms. Anika Rahman 200,000
Mr. Marzanur Rahman 200,000
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Mr. A M Saidur Rahman 200,000

Mr. A.K.M Mostafizur Rahman 200,000
Mr. Abu Bakr Chowdhury 200,000
Mr. Mohammad Shahid Islam 200,000
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Mr. Anwar Hossain 200,000

Mr. Tamal S.M Parvez 200,000
Mr. Rafikul Islam Mia Arzoo 200,000
Mr. Md. Mohiuddin 200,000
Ms. Shamimatun Nasim 200,000
Mr. Mohammed Adnan Imam 200,000
Mr. Rashed M Ibrahim 200,000
Mr. Dr. Rafiqul Islam Khan 200,000
Mr. Mohammad Zakaria Khan 200,000
Mr. Aziz U Ahmad 200,000
Mr. Mohammed Manzurul Islam 200,000
40,000,000
10.00 Retained Earnings
Opening Balance 23,395,490 6,746,124
Add: Total Comprehensive Income/(Loss) 3,308,600 16,649,366
26,704,090 23,395,490
Less: Dividend Paid During the Year 20,000,000 -
6,704,090 23,395,490

At Dec 31, 2018 At Dec 31, 2017
Taka Taka
11.00 Other Liabilities
Payable to Stock Exchanges (Note: 11.01) 3,913,233 14,940
Payable to Clients (Note: 11.02) 41,162,630 15,954,896
Current Income Tax Payable (Note: 11.03) 11,517,433 7,116,522
Deferred Tax Liability (Note: 11.04) 354,495 552,538
CDBL Charge - 59,981
Statutory Audit Fee payable 46,000 50,000
TDS at Source 3,808,500 8,500
VDS at Source 12,750 12,750
Incentive and Performance Bonus 362,390 -
Networking/Bandwidth Bill Payable - 3,678
Provision for Diminution of Shares/Investment 13,130,650 5,741,327
(Note: 11.05)
Provision of Water & Sewerage - 3,340
Payable with Merchant Bank - 351,693
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Provision of Printing & Stationary - 93,988
Provision of Electricity - 25,926
Provision for Office Maintenance - 15,018
IPO payable - -
74,308,081 30,005,097
11.01 Payable to Stock Exchanges
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d.
Dhaka Stock Exchange Ltd. 3,913,233 14,940
3,913,233 14,940
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11.02 Payable to Clients 41,162,630 15,954,896
This represents amount payable to customers against sale of shares and/or receipts for purchasing of shares.
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11.03 Current Income Tax Payable
Opening Balance 7,116,522 1,599,836

Add: Addition During the Year 4,400,911 5,516,686
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11,517,433 7,116,522
Less: Adjustment of the deffered tax incurred on account of loss in 2016 - -
11,517,433 7,116,522
Taxable loss incurred in 2015 which has to be carryforwarded next 6 years under section 38 of ITO-1984. But company
incurred Taxable Profit in 2016 and, therefore, Defferred tax on account of business loss has been recovered from current
tax liability in 2016
11.04 Deferred Tax Liabilty
Opening Balance 552,538 367,669

Add: Addition During the Year - 184,869
552,538 552,538
Less: Adjustment During the Year 198,043 -
354,495 552,538
NRBC Bank 275

At Dec 31, 2018 At Dec 31, 2017
Taka Taka
11.05 Provision for Diminution of Shares/Investment
Opening Balance 5,741,327 -
Add: Addition During the Year 7,389,323 5,741,327
13,130,650 5,741,327
Less: Adjustment During the Year - -
13,130,650 5,741,327
12.00 Payable to Parent’s Company
Rent Payable - -
13.00 Overdraft Facility From NRBC Bank Ltd 36,556,246 -

NRBC Bank Securitis Ltd. availed Overdraft facility from our Parent Company. NRBC Bank limited having Limit [of Tk.30,00,00,000
@11.50% Per annum
2018 2017
Taka Taka
14.00 Interest Income
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Interest on Bank Deposit 2,108,262 1,565,640
Interest Income from Margin Loan 8,092,464 4,390,044
10,200,726 5,955,684
15.00 Interest Expense
c 251,326.01 -
16.00 Brokerage Commission
Brokerage Commission 24,124,787 26,747,599
d.
Less: Direct Charges Note 16.01 2,191,269 2,748,580
21,933,518 23,999,019
16.01 Direct Charges for getting Brokerage Commission
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Laga Charge 2,191,269 2,748,580

2,191,269 2,748,580
17.00 Investment Income (Listed Company)
Dividend Income 10,285,862 7,681,339
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Gain on Sale of Shares and Debentures(Net) (918,964) 15,165,044

9,366,899 22,846,383
18.00 Other Operating Income
Transaction / Transmission Fee 70,048 27,730
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Account Opening/Closing Fee 196,835 219,500

Other Income 1,066,516 499,350
IPO Commission/fee 17,460 2,720
1,350,858 749,300
19.00 Salary and Allowance
Basic Salary 5,284,838 4,493,329
Allowances 8,782,536 7,403,965
Incentive/Performance Bonus 362,390 -
Festival Bonus 1,547,340 1,073,054
Payment to Recognized Gratuity Fund 374,943 534,958
Company Contribution to Recognized Providend Fund 421,066 319,289
16,773,112 13,824,595
20.00 Rent, Taxes, Insurance, Electricity, etc.
Office Rent 3,899,400 3,608,577
Rates & Taxes (Note : 19.01) 48,769 46,069
DES/BSEC/RJSC Fees & Charge (Note : 19.02) 175,180 378,783
CDBL Charges (Note : 19.03) 1,461,109 1,583,426
Insurance Expenses 29,882 41,297
Electricity and Other Utility Expenses 338,567 284,583
5,952,907 5,942,735

2018 2017
Taka Taka
20.01 Rate & Taxes
Patent /Trade License/Holding Tax/Sign Board Tax 48,769 46,069
20.02 DSE/BSEC/RJSC Fees & Charge
RJSC Fess - 3,000
DSE/Broker Association Membership Fees 23,980 190,000
TREC Renewal Fees 52,500 50,000
Authorized Representative Fees 92,700 67,200
Investor Protection Fund Fees 2,500 6,883
TWS establishment Fee 3,500 61,700
175,180 378,783
20.03 CDBL Charges
CDBL Charges - Share Trading 1,461,109 1,489,426
CDBL Charges - Fees - 94,000
1,461,109 1,583,426
21.00 Legal/Professional/Preliminary Expenses
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Notary Public and Other Charges 1,050 2,640
Legal & Consultancy Fees 72,260 63,300
73,310 65,940
22.00 Stamp, Postage & Telecommunication etc.
Stamp and Coutridge Cost - 18,102
Postage & Courier Charges 23,359 11,623
Telephone Charges
c 254,406 239,879
d.
Fax, Networking/Bandwith Charge 632,597 484,152
910,362 753,756
23.00 Stationery, Printing, Advertisement, etc.
Stationery Expenses 219,556 293,643
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Printing Expenses 151,011 468,891

Publicity, Advertisement, etc 10,000 123,625
Photocopy & Book Binding - 2,145
Computer Expenses 58,081 251,847
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438,648 1,140,151
24.00 Board of Directors' Meeting Expenses
BOD Meeting Expenses 112,100 404,150
112,100 404,150
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25.00 Bank/Financial Expenses

Excise Duty 39,500 74,000
Bank Charge & Commission 28,597 26,765
68,097 100,765
26.00 Depreciation and Repair of the Property, Plant & Equipment
A. Depreciation of the Freehold Properties
Furniture & Fixtures 151,777 109,793
Office Equipment 139,072 118,596
Computer Accessories 951,475 629,069
Bangladesh Made Software 360,000 360,000
Motor Vehicles 744,000 744,000
2,346,325 1,961,458
B. Repair, Renovation & Maintenance of the Company's Assets:
Repair and Repalcement of Office Equipment and Machinery 208,003 20,460
208,003 20,460
Total [a+b] 2,554,328 1,981,918
NRBC Bank 277

2018 2017
Taka Taka
27.00 Other Expenses
Office Maintenance 46,537 266,501
Local Conveyance 57,205 72,017
Travelling Expenses 36,062 99,588
AGM Expenses 85,464 91,854
Uniform & Lerveries -SCS Staff 32,428 22,850
IPO Application Fee 48,000 13,000
Entertainment 450,101 620,883
Newspaper and Periodical 15,222 7,435
771,019 1,194,128
28.00 Provision for diminution of Share/Securities
Provision for unrealized loss of share/securities 7,389,323 5,741,327
7,389,323 5,741,327
Provisions for diminution in value of investments have been maintained in accordance with BAS-37 and BSEC Circular # SEC/
CMRRCD/2009-193/166 Dated December 08, 2015.
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29.00 Current Tax Expense
Operating Profit 14,900,791 28,092,248
Total Taxable income/loss as per income tax law,1984 15,466,627 27,564,050
Current Tax Expense for standard tax rate @35% and other rate
c 4,400,911 5,516,686
30.00 Deferred Tax Expense Carrying Amt Tax Base

d.
Fixed Assets 7,103,414 6,090,571 1,012,844 1,578,681
Net Taxable Temporary Difference [i.e. Tax will be paid in future Period] 1,012,844 1,578,681
Corporate Tax @ 35% I.e. Deferred Tax Liability for 2018 354,495 552,538
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Less : Deferred tax Liabilities in 2017 552,538 367,669

Deferred Tax expense for the quarter end on 31.12.2018 (198,043) 184,869
31.00 Earnings Per Share (EPS)

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Profit after Taxation 3,308,600 16,649,366

Number of Ordinary Shares Outstanding 40,000,000 40,000,000
0.08 0.42
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Earnings per shares (EPS) have been computed by dividing the basic earnings by the number of ordinary shares outstanding
as on December 31, 2018 in accordance with BAS-33.

32.00 Event after the reporting period
The Board of Director in its 16th meeting held on March 28, 2019 approved the audited financial Statement
33.00 Nature and type of related party transaction of the company
A. NRBC Bank Limited : Parents Subsidiary Relationship
Nature of Transaction Types Note 2018 2017
Advance Income Tax- AIT on Interest Assets- Inter Company 7 1,202,802 1,084,964
Bank Deposit: Assets- Inter company 8 38,195,791 6,082,238
NRB Commercial Bank Limited 36,457,068 4,821,044
A/C 0101-360-099
NRB Commercial Bank Limited 880,715 103,822
A/C 0101-360-098
NRB Commercial Bank Limited 858,008 1,157,372
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A/C 0101-364-002
Payable to NRCB Bank Ltd : Client Liability-Inter Company 11 606,774 31,130

Depsoit
Rent Payable to the Parents Liability-Inter Company 12 - -

(*Settled during the period)
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d.
Overdraft Facility From NRBC Bank Ltd Liability-Inter Company 13 36,556,246 -
Interest on Bank Deposit Income-Inter company 14 245,601 1,036,861

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Interest on OD Facility Expense-Inter company 15 251,326 -

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Brokerage Commission Income-Inter company 16 2,428,801 7,500,601
Rent, Tax and Insurance :

Office Rent Expense-Inter Company 20 3,297,000 3,297,000
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Bank/Financial Expense Expense-Inter Company 25 3,450 19,424
B. Other Related Parties with Directors :
i. No other transaction been occured with stake holding of Directors of NRBC Bank Securities Limited
ii. Above transactions has been occurred under normal course of business
NRBC Bank 279

280
Details of Property, Plant & Equipment for Accounting Purpose
As at December 31, 2018
Annexure - 1
Assets Depreciation
Sl Addition Disposal Addition Disposal
Properties & Assets Book Value
Annual Report 2018

NO. Opening Closing Rate of Opening Closing
during the during the during the during
Balance Balance Depreciation Balance Balance
year year year the year
1 Furniture and fixures 1,517,772 - - 1,517,772 10.00% 113,926 151,777 265,703 1,252,069
2 Office Equipment 1,371,350 52,366 - 1,423,716 10.00% 122,984 139,072 262,056 1,161,660
3 Computer and Accessories 4,704,730 90,250 - 4,794,980 20.00% 637,819 951,475 1,589,294 3,205,686
4 Bangladesh Made Computer Software
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1,800,000 - - 1,800,000 20.00% 390,000 360,000 750,000 1,050,000
5 Motor Vehicles 2,480,000 - - 2,480,000 30.00% 1,302,000 744,000 2,046,000 434,000
6 Professionals and Reference Books - - - - 10.00% - - - -
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Total 11,873,852 142,616 12,016,468 2,566,729 2,346,325 - 4,913,054 7,103,414
Details of Property, Plant & Equipment for Tax Purpose

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Assets Depreciation
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d.
Properties & Assets Addition Disposal Addition Disposal Book Value
NO. Opening Closing Rate of Opening Closing
during the during the during the during
Balance
year year
c Balance Depreciation Balance
year the year
Balance
1 Furniture and fixures 1,517,772 - - 1,517,772 10.00% 196,411 132,136 328,547 1,189,225
2 Office Equipment 1,371,350 52,366 - 1,423,716 10.00% 184,529 123,919 308,448 1,115,268
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3 Computer and Accessories 4,704,730 90,250 - 4,794,980 30.00% 1,521,669 981,993 2,503,662 2,291,318
4 Bangladesh Made Computer Software 1,800,000 - - 1,800,000 50.00% 1,350,000 225,000 1,575,000 225,000
5 Motor Vehicles 2,480,000 - - 2,480,000 20.00% 892,800 317,440 1,210,240 1,269,760
6 Professionals and Reference Books - - - - 10.00% - - - -
Total 11,873,852 142,616 12,016,468 4,145,409 1,780,488 - 5,925,897 6,090,571
Investments in Shares
Annexure - 2
Shares (quoted):
Number of Market Price Total Market Cost Per
Particulars Total Cost
Shares Per Share Price Share
ACFL* 1962 42.1 82,600.20 40.00 78,480.00
APEXTANRY 23701 137.7 3,263,627.70 159.86 3,788,774.70
BBS* 167436 28 4,688,208.00 37.77 6,323,239.52
BPML* 4085 83.8 342,323.00 80.00 326,800.00
CITYBANK* 100000 30.2 3,020,000.00 31.23 3,122,886.00
DHAKABANK* 937135 14.2 13,307,317.00 17.21 16,129,217.26
GP* 2000 367.3 734,600.00 441.15 882,294.96
IBP 294 31.1 9,143.40 9.09 2,673.14
INTRACO 266 26.8 7,128.80 9.53 2,533.65
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KTL 11070 25.3 280,071.00 9.09 100,640.00
LANKABAFIN* 272500 22.9 6,240,250.00 35.36 9,636,330.85
MERCANBANK* 960245 18 17,284,410.00 21.03 20,195,565.87
MLDYEING* 4229 29.7 125,601.30 8.33 35,241.67
PTL* 2972 65.9 195,854.80 63.77 189,532.39
RAKCERAMIC*
c
30000 39 1,170,000.00 53.02 1,590,453.00
SAPORTL* 106000 25.3 2,681,800.00 33.31 3,530,637.63
d.
SILVAPHL 9194 30.1 276,739.40 10.00 91,940.00
SKTRIMS* 5546 46.3 256,779.80 35.83 198,731.58
SQURPHARMA* 22107 254.2 5,619,599.40 269.93 5,967,348.31
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SSSTEEL** 13492 10 134,920.00 10.00 134,920.00

UNIONCAP 108916 12.4 1,350,558.40 19.09 2,079,587.39
VFSTDL* 4222 57.8 244,031.60 9.09 38,385.78
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Total 61,315,563.80 74,446,213.70

** Market value of SSTEEL was not abavilable as of 31.12.2018, subsequently Share started its trading on
17.01.2019 with average price of Tk. 40.00, but company considered market value is Tk. 10 on its financial state-
ment.
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B. Invest in Shares (unquoted):

Particulars No. of Share Cost Per Share At Cost
UFS-Pragati Life Unit Fund 1000000 10 10,000,000
Total 1000000 10,000,000
C. Initial Public Offer:

Particulars No. of Share Cost Per Share At Cost
Zenex Infosys 10466 10 104,660
Runner Automobile 14411 75 1,080,825
ADN Telecom 18929 30 567,870
EKCL 41719 45 1,877,355
Total 85525 3,630,710
NRBC Bank 281

D. Cost of Acquisition of DSE TREC & Share 247,120,683.00
“This represents our original investment cost for DSE memberships in exchange of which shares at a face value of
Tk. 10 each have been allotted in favor of the Company through vendor agreement on October 12, 2015 and sub-
sequently it endorsed by Dhaka Stock Exchange in its 812th meeting held on November 12, 2015. As per the provi-
sion of the Exchange Demutualization Act-2013 and in accordance with the Bangladesh Security Exchange Commis-
sion (BSEC) approved Demutualization Scheme, Dhaka Stock Exchange Ltd. (DSE) allotted total 72,15,106 ordinary
Shares at face value of Tk.10.00 each and, out of which. the 60% shares (shares 43,29,064) were kept in blocked
accounts as per the provisions of the Exchange Demutualization Act, 2013, and as such the value of these shares have
been classified as investment (Blocked Share) and considered under non-current assets in the books of accounts.
At the same time, Out of the above DSE has transferred 2,886,042 shares directly credited to the Ben-
eficiary Owner’s account of the Company which is 40% of the total holding of the shares and also shown as in-
vestment. Meanwhile, as per the section 12 of the Exchange Demutualization Act-2013 scheme, The DSE
sold 25% company shares to the strategic partners to Shenzhen Stock Exchange & Shanghai Stock Exchange.
Moreover remaining 75% shares have not been shown in the monthly report on Net Capi-
tal Balance as prescribed in rule 3(4) of the Securities and Exchange Rules 1987 to the stock exchange.
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As there is no active market for shares DSE , we have shown the value at original cost of our investment in accordance
with paragraph B 5.2.3 of IFRS 9, “ cost can be considered as an estimate of fair value if insufficient more recent infor-
mation is available to measure fair value”.
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d.
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NRBC BANK DEPOSIT PRODUCTS
Savings Deposits
Customer can open Savings Account in his/her own name or joint name. Any amount of the balance can be withdrawn
from this account. There are no hidden charges and half yearly maintenance fee. NRBC Bank Limited ensures attractive
rate of return on balance amount. The rate of interest of this account is 4.00%. Apart from this, cheque book, VISA debit
card, internet banking and access to account 24/7 via ATM are available to customers.
Shohoj Shanchay Deposits
Shohoj Shanchay Deposit Account is a unique account with an opportunity to earn higher interest and enjoy the free-
dom of savings account. Any individual can open this account in his/her own name or jointly by depositing any of the
following minimum declared amounts. Customer can deposit and withdraw any amount from this account. There are
cheque book and debit card facility against this account. If customer maintains minimum declared amount throughout
the month, he/she will get interest at the end of the month as per following table:
SL. No Minimum Declared Amount Interest Rate

01 50,000.00 5.25%
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02 1,00,000.00 5.50%
03 2,00,000.00 5.75%
Student Savings Deposits
Student Savings Account is designed for our future generation to introduce them in Banking practice. Any student at the
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age of below eighteen years can open this account. However, the account is operated by legal guardian of the students.
Cheque and ATM card (only debit card) can be used to withdraw amount from the account. Maximum limit for monthly
d.
withdrawal through ATM Card and Point of Sales (POS) will be Tk. 2,000.00. This limit may be increased up to Tk 5,000.00
on request of the guardian.
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Savings Deposits -RMG Workers

Savings Account-RMG Workers is designed to provide financial service to the garment workers as a part of the Bank’s
Financial Inclusion Strategy. Any garment workers can open this account. This account is similar to Bank’s regular savings
account except the rate of interest and minimum balance. The rate of interest of this account is 6.00% p.a. and minimum
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required balance is Tk 10.00 only.

Current Deposits
Current Deposit Account is designed for business transactions without any restriction on withdrawal or deposit either
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in amount or in number of transaction. Other key facilities include cheque book, VISA debit card and internet banking
facility, access to account 24/7 via ATM, and earning interest etc. The rate of interest is 1.00% p.a. on daily balance.
Short Notice Deposits
Short Notice Deposit Account is an interest bearing deposit account specially designed to facilitate the financial need
of large corporate or Government bodies. This account allows customers withdraw and deposit any amount and earn a
higher rate of return at the end of month. Among the key features cheque book facility, VISA debit card facility, access to
account 24/7 via ATM and opportunity to get up to 3.50% interest are mentionable. Interest rate on SND accounts varies
on the daily balance of the account. Present rate of interest is as under;
Amount Rate(%)
Below 1 crore 2.00%
1 crore and above but below 50 crore 3.00%
50 crore and above 3.50%
NRBC Bank 283

Fixed Deposits
Under this account customer can deposit any amount from BDT10,000.00 for a prescribed fixed tenor and enjoy fixed
rate of interest at maturity. Present rate of interest is given below;
Tenor Rate (%)

1 Month 6.50%
3 Months 8.25%
6 Months 8.75%
1 Year 9.50%
2/3 Years 9.75%
Money Maker Scheme
To encourage small savings Money Maker Scheme is introduced to accept small amount of money on monthly basis
from customer to inculcate the savings tendency among the small savers. It is a simple, safe and convenient way to
make money grow. Under this scheme customers will deposit a certain amount of money in every month for a specific
tenor from 3 years, 5 years, 7 years or 10 years and get attractive lump sum at maturity as mentioned in the following
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table:
Monthly
Installment 200 500 1,000 2,000 2,500 5,000 10,000 20,000 25,000
Term c
03 Years 8,500 21,250 42,500 85,000 1,06,250 2,12,500 4,25,000 8,50,000 10,62,500
05 Years 15,900 39,750 79,500 1,59,000 1,98,750 3,97,500 7,95,000 15,90,000 19,87,500
d.
07 Years 25,100 62,750 1,25,500 2,51,000 3,13,750 6,27,500 12,55,000 25,10,000 31,37,500
10 Years 43,200 1,08,000 2,16,000 4,32,000 5,40,000 10,80,000 21,60,000 43,20,000 54,00,000
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Corporate Money Maker Scheme

The Corporate Money Maker is similar to regular Money Maker Scheme except the size of installment and the benefit
provided. Any individual and corporate bodies such as Multinational Company, Corporate House of EPZ, Local Corporate
House (sole proprietorship concern, partnership concern, private and public limited company), Educational Institute,
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Non-banking Financial Institute, Insurance Company, Club and Association, NGO etc. can open this scheme. Monthly
installment size and corresponding maturity value, principal with interest are as below;
Monthly Installment
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25,000.00 50,000.00 75,000.00 1,00,000.00 3,00,000.00 5,00,000.00

Term
02 Years 6,45,000.00 12,90,000.00 19,35,000.00 25,80,000.00 77,40,000.00 1,29,00,000.00
03 Years 10,50,000.00 21,00,000.00 31,50,000.00 42,00,000.00 1,26,00,000.00 2,10,00,000.00
04 Years 14,75,000.00 29,50,000.00 44,25,000.00 59,00,000.00 1,77,00,000.00 2,95,00,000.00
05 Years 19,50,000.00 39,00,000.00 58,50,000.00 78,00,000.00 2,34,00,000.00 3,90,00,000.00
Priority Deposit Scheme

Under this scheme customer can open account in his or her own name or jointly or in name of institution or organization
by depositing at least Tk 5 Lakh for any of the tenor from 1 month, 3 months, 6 months, 1 year, 2 years and 3 years. This
scheme is auto renewable. Present rate of interest is as below:
Rate (in percentage)

Amount in Taka
1 Month 3 Months 6 Months 1 Year 2 Years 3 Years
5.00 Lakh and above 6.75 8.75 9.25 10.00 9.75 9.75
Deposit Pension Scheme
Deposit pension scheme allows customers to deposit a specific amount every month throughout six year. At the end of
the 6 years customer can get either a lump sum amount or a specific monthly pension throughout next five years. At

the end of the pension period customer will get the lump sum amount. Furthermore, at any time of the pension period,
customer may stop enjoying pension and withdraw the full lump sum according to the below table.
Option: A Option: B
Monthly
installment Amount payable on maturity Monthly pension payable after depositing Fixed amount payable after receiving
(after 6 years) monthly installment for 6 years monthly pension for 5 years
1,000.00 95,200.00 700.00 95,200.00
2,000.00 1,90,400.00 1,400.00 1,90,400.00
3,000.00 2,85,600.00 2,100.00 2,85,600.00
4,000.00 3,80,800.00 2,800.00 3,80,800.00
5,000.00 4,76,000.00 3,500.00 4,76,000.00
10,000.00 9,52,000.00 7,000.00 9,52,000.00
Monthly Benefit Scheme

Monthly benefit scheme is designed to provide benefit on monthly basis against a one-time deposit. Customer is
allowed to open this scheme in his or her own name or jointly or in name of in name of institution or organization by
depositing any amount of Tk. 50,000 or its multiple. Tenor of the scheme is 1 year, 2 years and 3 years. Benefit will
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be given upon completion of each month until completion of tenor. Principal will be given back to the customer upon
maturity or encashment of the scheme. At present the monthly benefit is as under;
Tenor Benefit Per Month for Per Lakh Taka

1 Year c 850
2 Years 875
3 Years 875
d.
Double Benefit Deposit Scheme (DBDS)
Under this scheme deposited amount will be doubled at 6 years and 6 months. Any type of customer can open this
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scheme in his own name or jointly by depositing Tk 10,000 or its multiple.

Triple Benefit Deposit Scheme (TBDS)
Under this scheme principal amount will be tripled at 10 years 6 months. Any customer can open account under this
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scheme in his own name or jointly or in name of in name of institution or organization by depositing any amount of Tk
10,000 or its multiple. Moreover, if customers encash the scheme before maturity, they will get the full interest for the
completed year(s) as mentioned below. Yearly payable amount with principal amount for amount of Tk 10,000.00 is
given below:
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Tenor Yearly payable amount with principal amount

01 Year 10,850
02 Years 11,800
03 Years 12,900
04 Years 14,000
05 Years 15,500
06 Years 17,000
07 Years 18,600
08 Years 20,500
09 Years 22,500
10 Years 25,000
10 Year 6 Months 30,000
NRBC Bank 285

Lakhpoti Savings Scheme
Customer can open account under this scheme in his own name or jointly by depositing an Initial Deposit amount
along with First Installment amount. Tenor of this scheme is 5 years. After depositing 60 installments and the initial
deposit customer will get attractive benefit as below;
Deposit Amount
Payable on Maturity
Initial Deposit Monthly Installment
13,000 1,000 1,00,000
26,000 2,000 2,00,000
39,000 3,000 3,00,000
52,000 4,000 4,00,000
65,000 5,000 5,00,000
1,30,000 10,000 10,00,000
6,50,000 50,000 50,00,000
13,00,000 1,00,000 1,00,00,000
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Millionaire Savings Scheme
This is an ideal scheme for individuals who want to save their surplus income and attain a savings goal. Customers need
to deposit a specific amount each month to get Tk 10.00 Lakh. The amount of monthly installment depends on the
tenor of the scheme starting from 3 years.
Term
c
Monthly Installments Amount Payable on Term
d.
03 Years 24,000.00
04 Years 17,000.00
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05 Years 12,900.00
06 Years 10,100.00 Tk 10.00 Lakh
07 Years 8,100.00
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08 Years 6,600.00
10 Years 4,600.00
Student Savings Scheme
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This product is designed aiming to build saving tendency among students. Any student at the age of below eighteen
years can open this scheme in his or her own name by depositing first installment. Parents or legal guardian of the
students will operate the scheme on behalf of the students. Monthly installment size and corresponding maturity value
(Principal plus Interest) are as below;
Monthly Installment
200.00 300.00 500.00
Term
3 Years 8,600.00 12,900.00 21,500.00
5 Years 16,160.00 24,240.00 40,400.00
7 Years 25,600.00 38,400.00 64,000.00
10 Years 44,460.00 66,690.00 111,150.00

Money Maker Scheme-RMG Workers
This scheme is designed to provide financial service to the garment workers of the country. Any garment worker can
open this scheme upon producing employee id. This is a monthly installment based scheme with higher rate of returns.
Monthly installment size and corresponding maturity value are given in the following table:
Installment
200 500 800 1,000 1,500 2,000 2,500 3,000 5,000 10,000
Tenor
3 Years 8,540 21,350 34,160 42,700 64,050 85,400 106,750 128,100 213,500 427,000
5 Years 16,020 40,050 64,080 80,100 120,150 160,200 200,250 240,300 400,500 801,000
7 Years 25,340 63,350 101,360 126,700 190,050 253,400 316,750 380,100 633,500 1,267,000
10 Years 43,740 109,350 174,960 218,700 328,050 437,400 546,750 656,100 1,093,500 2,187,000
Note:
1. In case of the death of scheme holder before maturity, ledger balance (calculated based on scheme rate) is
given to the nominee(s) or legal successor(s) after deduction of government dues for the period completed by the
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scheme holder.
2. Depositor may avail credit facility against all schemes according to the credit policy of the bank.
Special Products
Apart from the above deposit products, considering the contribution of individual of different professions in our society,
c
we have the following deposit products with special rates and privileges:
d.
Sl. No. Name of the Product Target People
1 wkÿv¸iæ Teacher
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2 †`nNwo Doctor
3 `ye©vi Defense Personnel
4 jvj-meyR Freedom Fighter
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5 ¸iæRb Senior Citizen

6 cÖevmx Non-resident Bangladeshi
7 gv Mother
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8 AwaKvi Under Privileged/Marginalized People
NRBC Bank 287

NRBC Bank Retail Loan P
roducts
NRBC Life Style Loan
Why NRBC Life Style Loan?
If you plan to get married or indulge in an exotic vacation or renovate your dwelling or meet up emergency payments to
uphold your life style, you can do all these and more without worrying about where the money will come from. NRBC
Bank Life Style Loan is designed to address diverse financial needs in an easy and convenient manner.
Features of NRBC Life Style Loan
* Collateral free flexible financing solution
* Income aggregation is allowed in case of joint application with spouse.
* Top Up facility in need of additional finance
* No partial settlement fee on maximum 25% of principal settlement
* Minimal documentation and hassle-free application
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* Market competitive rate & fees
Loan Tenor
* Flexible loan tenor ranging from 24 months to 60 months
Loan Amount
* Minimum BDT 50,000 & Maximum BDT 20 Lac
c
d.
Eligible person for NRBC Life Style Loan
Loan offered to diversified professionals including salaried individuals, businesspersons, practitioners and Landlords.
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* Salaried: Serving in any reputed organization

* Businessperson : Businesspersons having 3 years of experience in same business
* Practitioners : Individuals engaged in private practice
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* Landlords: Landlords with sufficient rental income from properties
NRBC Auto Loan

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Product Range
NRBC Offers wide range of Auto loan facilities. The bank provides Financing against purchase of …..
* Brand New Vehicle
* Re-conditioned Vehicle
Features of NRBC Auto Loan
Financing Amount:
*50% of car value with maximum loan amount 40 lac for new/Re-conditioned car
Financing Period:
Flexible loan tenor with maximum
* 5 years for new and reconditioned vehicle
Income Criteria:
Minimum aggregated income of
* BDT 40,000 for government employees
* BDT 50,000 for other segments

Eligible person for NRBC Auto Loan
* Businessperson : Having at least 3 years of experience in same business
* Practitioners : Engaged in private practice at least for 2 years
NRBC Home Loan

Product Range
NRBC Offers wide range of Home loan facilities. The bank provides financing against…
* Completed/under construction apartment
* Katcha-Pacca establishment
* Transfer existing home loan to NRBC Bank
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* Home construction, extension, decoration , renovation etc
Features
* Amount: 70% of property value with maximum loan amount of 1.20 crore
* Financing Period: Flexible loan tenor with maximum 240 months
c
* Application Criteria: Joint applicant required limited to family members’
d.
* Income Criteria: Minimum aggregated income of BDT 70,000/-
* Rate &Fees: Market competitive rate & fees
ab
Eligible person for NRBC Home Loan

nk
* Businessperson : Having at least 3 years of experience in same business

* Practitioners : Engaged in private practice at least for 2 years
la
NRBC Business Loan

Why NRBC Business Loan?
As a businessperson, you are successful. To flourish the business further, you need more liquidity. Though your business
transactions are excellent, unfortunately you do not have collateral to provide. NRBC Bank is here to cater your need
and help to grow your business further.
Features of NRBC Business Loan
* Loan Amount: Minimum BDT 2 Lac to Maximum BDT 75 Lac
* Loan Tenor: Flexible loan tenor with maximum 5 years
* Income: Required minimum monthly income BDT 35,000
* Experience: Minimum 3 years in same business
* Rate &Fees: Market competitive rate & fees
Eligible party for NRBC Business Loan
NRBC Business Loan is available for:
* Sole Proprietorship concern
NRBC Bank 289

* Registered Partnership
* Private Limited Company
* Public Limited Company
NRBC Education Loan
Why NRBC Education Loan?
You may dream to study in renowned and top ranked educational institutions abroad to keep you one step ahead in the
competitive world. Once you have decided from where to pursue your education abroad, the most difficult part comes
to your mind arranging and managing the funds. A majority of the foreign educational institutions require solvency
certificate / document which you need to submit.
NRBC Education Loans are designed to meet such solvency requirements for meritorious students. With high loan
amount, hassle free application and competitive rates of NRBC Education loan, you will never be far away from making
your dreams come true.
Features of NRBC Education Loan:
* Loan will be sanctioned in the name of parent/guardian/sponsor
om
* Long repayment tenor up to 2 years
* Financing amount ranging from 5 lac to maximum 20 lac
* Disbursement in savings account with the bank
* Loan will be sanctioned after the confirmation from the foreign institute
* Option to avail pre-paid student card
c
d.
Collateral:
* 20% cash security maintained in savings account during the loan period.
ab
* Amount equivalent to entire loan amount will remain blocked during the loan period
nk
la

Registered Office: 114 Motijheel C/A, Dhaka
Proxy Form
I/We .............................................................................................................................................................................
of............................................................................................................................................. being a Member of
NRB Commercial Bank Limited, do hereby appoint Mr./Ms. ……………………………………......…………………….............. of
………………………………………………................…...................................................................................................……..... or
failing him/her .................................................................................................................................................................
of ………………………………………………................…...................................................................................................……...... as
my/our Proxy/ Attorney in my/our absence to attend and vote for me/us, and on my/our behalf, at the 6th Annual
om
General Meeting of the Company to be held on 20 July 2019, Saturday, at 11:00 am at the Boardroom of the Bank,
Silver Tower, 52 Gulshan Avenue, Gulshan-1, Dhaka or at any adjournment thereof.
Signed this ………............………………….. day of ………………….......……………… 2019

c
Signature of Proxy ……………...............................................…………………….
Revenue
d.
Stamp
…………………………………… Tk.20.00
Signature of Shareholder
ab
Folio No.:
No. of Shares ................................

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N.B.
This Proxy Form, duly completed, must be deposited at least 72 (seventy two) hours before the meeting at the
company’s Registered Office. Proxy is invalid if not signed and stamped as explained above..
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………………………………………………………………………………………...............………………………………………………………………………..
Attendance Slip
I hereby record my attendance at the 6th Annual General Meeting of the Company to be held on 20 July 2019, Saturday,
at 11:00 am at the Boardroom of the Bank, Silver Tower, 52 Gulshan Avenue, Gulshan-1, Dhaka.
Name of Member/Proxy ……………………………………………………………………………................
Folio No.:
Signature ………………………………………………….
Date ………………………………………………………...
la
nk
ab
d.
co
m

1616060601.6826615 - NRBCBANK 2018 Annual

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la

We turned the wheels to reach the des�na�on we dreamt of

Notice of the 6th Annual General Meeting

Vision, Mission, Strategic Objectives,

Branch Networks 51-58

Report and Governance 59-130

Key Financial Indicator 59-64

2 Annual Report 2018

Auditors’ Report & Audited Financial Statement

NRBC Bank’s Products 283-288

NRBC Bank Deposit Products 283-287

All Shareholders of NRB Commercial Bank Limited

Md. Mozammel Hossain, FCA

4 Annual Report 2018

I. Book closure date has been fixed on Monday, 1 July 2019.

V. Attendance of the shareholder(s)/proxy(ies) shall be recorded at the entrance of the venue.

6 Annual Report 2018

Legal Form Public Limited Company

February 20, 2013

Core Banking Segment

Agent Banking Bangladesh Bank Approval : May 29, 2014

Name of NRBC Bank’s Subsidiary

individual branches in 37 countries)

Chairman Mr. S M Parvez Tamal

Mr. Mohammed Adnan Imam, FCCA

Chairman – Risk Management Mr. S M Parvez Tamal

Managing Director & CEO Mr. Khondoker Rashed Maqsood

Company Secretary Mr. Md. Mozammel Hossain, FCA

Mr. Md. Mukhter Hosain

Mr. Syed Mahbubul Haq

Mr. Harunur Rashid

Annual Report 2018

Auditors MABS & J Partners

Tax Consultants K M Hasan & Associates

8 Annual Report 2018

Capital Tk. 7404.30 Million

Paid-up Capital Tk. 5,145.00 Million

Employees No. of Official : 970

Deposits 54,085.64 Million

Return on Investment/Equity (ROI/ROE) 13.89%

Return on Asset (ROA) 1.50%

Capital to Risk Weighted Assets Ratio 14.09%

Loans & Advances 48,151.88 Million

Earnings per Share Tk. 1.82

Net Asset Value Tk. 7,094.31 Million

Total Nostro Account 12

Bangladesh Institute of Bank

American Chamber of Commerce Foreign Investors’ Chamber of

in Bangladesh (AmCham) Commerce & Industry (FICCI)

The Institute of Bankers Bangladesh Foreign Exchange

Mission Core Values

of mutual fund etc., for addressing the needs of newly

be motivated to accept banking challenges and to face

12 Annual Report 2018

responsibility if they asked for, or help them voluntarily;

continuously to develop and maintain their o Diversifying of Investment in different assets to

14 Annual Report 2018

February 20, 2013 May 13, 2013

February 20, 2013 June 16, 2013