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CONTENTS
03
7 04
Directors’ Report 05-26
27-29
Responsibility Statement of MD and CFO’s 30
Auditors’ Report & Audited Financial Statement of NRBC Bank Limited 31-106
107-124
Proxy Form 125
2
 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 for the year ended on 31st December 2019.

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We are pleased to enclose a copy of Annual Report – 2019, along with the Audited Consolidated Financial Statements for the year
ended on 31st December 2019 for your kind information and record.

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The Report includes consolidated Balance Sheet, Income Statement, Cash Flow Statement, Statement of Changes in Equity,
Liquidity Statement, along with Notes thereon and Directors’ Report, of NRBC Bank for the year ended on 31st December 2019.
Best regards
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Yours truly,
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Md. Mozammel Hossain, FCA

Company Secretary
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3
 Notice of the 7th Annual General Meeting
Virtual Shareholders’ Meeting

Notice is hereby given that the 7th Annual General Meeting (AGM) of NRB Commercial Bank Limited will be held on Sunday, 7th
June 2020, at 12:00 noon through video conference to transact the following business:

Agenda

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a) Consideration and adoption of Directors’ Report and the Audited Financial Statements of the Bank for the year ended
31st December 2019 together with the Auditors Report thereon.
b) Declaration of Dividend for the year ended 31st December 2019 as recommended by the Board of Directors.
c) Election/Re-Election of Directors.
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d) Appointment of Statutory Auditors and fixation of their remuneration.
.
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By order of the Board of Directors
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Md. Mozammel Hossain, FCA

Company Secretary
Dated: Dhaka, 17th May 2020
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NOTES
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I. Closure of Books of Register has been fixed on Wednesday, 20 May 2020.

II. Members whose names appeared on the Members Register as on Book Closure Date i.e. Wednesday, 20 May 2020 are
eligible to attend the 7th 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.

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DIRECTORS’ REPORT
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5
 DIRECTORS’ REPORT

BISMILLAHAHER RAHMANIR RAHIM

Dear Fellow Shareholders

The Board of Directors of NRB Commercial Bank Limited has the pleasure of presenting Directors’ Report, Audited Financial
Statements for the year ended on December 31, 2019 together with Auditors’ Report before you on the occasion of 7th Annual
General Meeting (AGM) of the Bank for
consideration and adoption. A review of the
report would reveal satisfactory performance
of the bank in a competitive environment.
The Directors’ Report has been prepared
in compliance with section 184 of the
Companies Act 1994, BSEC Notification No.
BSEC/CMRRCD/2006-158/207/Admin/80,
dated 03 June, 2018 of the Securities and
Exchange Commission. Moreover, we,
the Directors of the Bank, are pleased to
explain and disclose some issues, which are

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consider relevant to ensure transparency
and practice of corporate governance in the
operational activities of the bank. We believe
the Report will give real insights of the bank’s
performance during the year under review

A1.0: Global Economy

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Partial view of 6th AGM held on July 20, 2020

Global growth is set to rise by 2.50 percent this year, a small rise from an estimated 2.40 percent in 2019, as trade and investment
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gradually recover. Emerging market and developing economies are anticipated to see growth accelerate to 4.10 percent from 3.50
percent last year. However, that acceleration will not be broad-based. The pickup is anticipated to come largely from a handful of
large emerging economies stabilizing after deep recessions or sharp slowdowns. Even this tepid global rally could be disrupted
by any number of threats. The world economy is now on lockdown because of the global corona virus (COVID-19) pandemic.
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Governments and their central banks around the world are wasting no time in dealing with the health and economic implications
of this crisis. Trade tensions could re-escalate. A sharper-than-expected growth slowdown in major economies would reverberate
widely. A resurgence of financial stress in large emerging markets, an escalation of geopolitical tensions, or a series of extreme
weather events could all have adverse effects on economic activity. One is the largest, fastest, and most broad-based wave of debt
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accumulation in advanced economies as well as in emerging and developing economies in the last 50 years. Public borrowing can
be beneficial and spur economic development, if used to finance growth-enhancing investments. However, although currently
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low interest rates mitigate risks, the three previous waves of debt accumulation in debt have ended badly. A second is the
widespread slowdown in productivity growth over the last ten years. Growth in productivity/output per worker is essential to
raising living standards. However, weaker investment and efficiency gains, dwindling gains from the reallocation of resources
to more productive sectors, and slowing improvements in the key drivers of productivity have sapped momentum in this key
driver of lasting growth. Additional key themes explored in this edition include price controls which, despite good intentions,
can dampen investment and growth, worsen poverty outcomes, and lead to heavier fiscal burdens and the drivers of the long
recent period of low inflation among low-income countries and necessary policies to maintain low and stable inflation. These
messages have serious implications for the goals of eradicating poverty and sharing prosperity. Even if the recovery in emerging
and developing economy growth were to take place as expected, per capita growth would advance at a pace too slow to meet
development goals. Yet policymakers have it in their capacity to ensure the recovery not only stays on track, but even surprises to
the upside. Recent policy actions particularly those that have mitigated trade tensions could augur a sustained reduction in policy
uncertainty. Countries could pursue decisive reforms to bolster governance and business climate, improve tax policy, promote
trade integration, and rekindle productivity growth, all while protecting vulnerable groups. Building resilient monetary and fiscal
frameworks, instituting robust supervisory and regulatory regimes, and following transparent debt management practices could
reduce the risk of shocks, or soften their impact, and strengthen resilience against them. As a philosopher once said, one swallow
does not a summer make. There are signs that global growth skirted a rough patch and is recovering and it is up to policy makers
to make sure it thrives.
Global growth weakened to an estimated 2.4O percent last year, the lowest rate of expansion since the global financial crisis.
with some recent data pointing to an incipient stabilization of economic conditions, global growth is projected to edge up to 2.50
percent in 2020, if investment and trade gradually recover.

6
In advanced economies, the weakness of the current expansion has made it difficult for central banks to create room for additional
easing. Low global interest rates and the associated reduction in debt service burdens may provide some countries with additional
flexibility for the implementation of structural reforms, such as investments in public infrastructure or the adoption of other
growth-friendly policies. In addition, governments can create further fiscal space through better tax compliance and enforcement.
To rekindle productivity growth, a comprehensive approach needs to be employed involving policies that facilitate investment
in physical and human capital, encourage the reallocation of resources toward more productive sectors, reinvigorate technology
adoption and innovation among firms, and promote a growth-friendly macroeconomic and institutional environment. Within
this four pronged approach, specific policy priorities will depend on country circumstances. In addition, investments in green
infrastructure can also help achieve development goals and improve resilience to climate change.

A2.0: Bangladesh Economy

In spite of various national and international adverse situations, Bangladesh has been able to continue its economic development
and high growth trend. According to the provisional estimate of Bangladesh Bureau of Statistics (BBS), GDP growth for FY2018-19
reached 8.13 percent. On the other hand, according to final estimate in FY2017-18, the country’s growth rate was 7.86 percent.
In FY2018-19 per capita GDP increases by USD 152.00 compare with the previous fiscal year and raises at USD 1,827.00. Likewise,
per capita national income increased to USD 1,909.00 in FY2018-19 from USD 1,751.00 in FY2017-18.
Both public and private investment increased in FY2018-19 from previous fiscal year. The total investment rose to 31.56 percent
in FY2018-19, which was 31.23 percent in FY2017-18. In FY2018-19, public sector investment is 8.17 percent and private sector
investment is 23.40 percent of Gross Domestic Product (GDP). In FY2018-19, growth of revenue collection is at satisfactory level.
In this fiscal year revised target for revenue receipt was set at Tk.3, 165,990.00 million which 12.48 percent of GDP. Out of this

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amount tax revenue from NBR sources was marked at Tk.2, 800,000.00 million that is 11.04 percent of GDP, tax revenue from
non NBR sources at Tk.96,000.00 million states 0.38 percent of GDP and non-tax revenue at Tk.270,000.00 million which is 1.06
percent of GDP. Total revenue receipt was 10.06 percent more than the same period in preceding fiscal year, tax revenues receipt
was 8.88 percent than that of preceding year.
NRB Commercial bank limited has
inaugurated “Mujib Corner” to pay tribute
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to father of the nation Bangabandhu
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Sheikh Mujibur Rahman. Economic liberty
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or monetary freedom of Bangladesh can
be achieved by implementing the ideology
of Bangabandhu. NRBC Bank is working to
attain the goal of creating Golden Bangla
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free from hunger and poverty. NRBC

Bank Limited devoted itself to realize the
goal of making the country economically
Independent.
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A3.0: Banking Industry

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After a rally of growth over the past few

years, the banking sector of Bangladesh has
passed the year 2019 as a period of internal
consolidation to sustain the achievements.
Bangladesh Bank (BB) has also amended
and adopted some prudential policies and Inauguration of Mujib Corner to observe MUJIB 100
regulatory measures to help the banking
sector in its quest to attain sustainability. The major prudential policies and regulatory measures taken, but not limited to, were
as follows: adaptation of Guidelines for Internal Credit Risk Rating System, policy for off-shore banking operation of banks, policy
for investment in long term infrastructure projects and policy for investment in non-listed securities by banks, amendments
of loan/investment write-off policy, loan classification and provisioning policy, policy to provide incentive to good borrowers,
Risk Management Guidelines for Banks and regulation regarding investment in capital market by banks. It is expected that
amendments and adaptation of these policies and regulatory measures will help to overcome the limitations and enhance the
strive towards the stability of the banking sector. The performance of the Risk Management Committee at the board level of
banks is being evaluated regularly by Bangladesh Bank. As a part of supervisory activities, regular and special on-site inspections
have been conducted throughout the year. Moreover, special monitoring has been conducted by BB to oversee the liquidity level
of the banking sector which results in a sufficient level of aggregate excess liquidity at the end of the FY19. Besides, as a part of
continual effort, steps have been taken to reduce the overall NPL of the sector. At the end of the year 2019, the overall Capital to
Risk weighted Asset Ratio (CRAR) stood at satisfactory level which indicates a more resilient banking sector.

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Capital adequacy focuses on the total position of bank’s capital and the protection of depositors and other creditors from the
potential losses that a bank might incur. It helps absorb possible losses due to credit risk, market risk and operational risks that a
bank might be exposed to during its normal course of business. Under Basel-III, banks in Bangladesh are instructed to maintain
the Minimum Capital Requirement (MCR) at 10.0 percent of the Risk Weighted Assets (RWA). The aggregate amount of regulatory
capital of the banking sector was BDT 106,580.35 million in December 2019 which was BDT 102,560 million and BDT 98,693
million in the year 2018 and 2017 respectively.
The most important indicator to demonstrate the asset quality is the ratio of gross Non-Performing Loans (NPLs) total loans and
net 11.30 percent. PCBs had the lowest and SCBs had the highest gross NPL ratio. PCBs’ gross NPL ratio was 5.78 (BDT 441,740
million) percent, whereas those of SCBs, FCBs and DFIs were 30.0, 5.74 (BDT 21,030 million) and 15.12 (BDT 40,580 million)
percent respectively at the end of December 2019. The ratio of gross NPLs to total loans and advances indicates a mixed trend
in the banking sector during the last ten (10) years. At the end of December 2019, it stood at 11.70 percent. Comparatively poor
assessment and inadequate follow-up and
supervision of the loans have eventually
resulted into the current situation of poor
asset quality of SCBs and DFIs. However,
various measures for instance strengthening
of recovery unit, special recovery program,
etc for increasing recovery against loans
have been taken by the banks. Besides,
several policy initiatives have also been
taken by Bangladesh Bank to reduce

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NPLs through restructure, rescheduling,
recovery, one time exit and write-off in
2019. Net Non-Performing Loan (Non-
Performing Loan-Provision for classified
loan-interest suspense classified loan) ratio
of the sector stood at 2.50 percent at the
end of December 2019. A new policy was
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introduced in February 2019 in this regard
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via BRPD circular no. 01 dated February 6,
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2019. Banks may write off bad/loss loans
complying with the conditions covered by Writer, Researcher, Scientist, Director of NRBC Bank, Freedom Fighter Dr. Nuran
the new policy guidelines. Besides existing Nabi received Ekushey Padak-2020 for his contribution to language and literature.
loan rescheduling policy the central bank on
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may 16 2019 issued a special policy on loan rescheduling of one time exit scheme for defaulter to reduce the high amount of toxic
loans. Under the special policy defaulters got the opportunity to regularize their loan for 10 years including one year grace period
just by making 2 percent down payment. Their interest will be charged at 9 percent per annum.
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Sound management is one of the important pre-requisites for the strength and growth of any financial institution. Although there
is no direct means to measure management soundness but total expenditure/total income, operating expenses/total expenses,
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earnings/share and operating expenses/employee and interest rate spread are generally used to determine management
soundness of a financial institution. Besides, issues such as technical competence and leadership of mid and senior level
management, compliance with banking laws and regulations, compliance of sound internal policies, ability to implement strategic
plan and undertake timely initiatives, etc. are taken into consideration to measure the quality of management. Effective liquidity
management helps to ensure bank’s ability to meet cash flow obligations, which are uncertain as they are affected by external
events and other agents’ behavior. Indicators like advance/deposit ratio (ADR), statutory liquidity ratio (SLR), interbank call money
rate, and repo rate show the real picture of liquidity of the banking sector. On the other hand, one can evaluate bank’s strength
to withstand against any liquidity stress situation through liquidity coverage ratio (LCR) and net stable funding ratio (NSFR).
In the year 2020 Bangladesh Economy is going be seriously affected by corona virus fallout, especially the banking industry. The
country’s exports imports and remittances has already fallen and forecast for the next few months is not encouraging either.
Inflow of foreign direct investment (FDI) is unlikely to rise soon while the Government may not get the external assistance.
Resources mobilization from both foreign and domestic sources may be difficult. Suspension of production of many export
oriented industrial units especially Garments, Textile, Leather and Leather Goods, Jute Yarn and Jute Goods, Shrimp and Frozen
Foods, may trigger Unemployment. Cumulative effect of losses to be incurred by all these sectors would further affect the banking
sector already plagued by Non Performing Loan (NPL). The banking sectors have also considerable investment in small medium
enterprises (SME), Cottage and Micro Enterprises, Micro Finance, Consumer Finance, and Retail Loan Segments. All these sectors
are highly affected by COVID-19 Crisis and severity of losses is multiplying with every passing day. a set of measures could be
taken to compensate losses from corona virus. Bangladesh bank already has taken some steps like reduction CRR, ADR, IDR, re-
fixation REPO Interest rate, extension of usance period for import of industrial raw material and life savings drugs, and status quo
in classification status of loans and advances. All the steps taken by Bangladesh Bank go in favor of the Borrowers. Initiatives to
be taken that go in favor of banks which are one of the most important player of the economy, corporate tax and value added tax
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should be downwardly revised, enhancing refinance facilities for banks, subsidized for the waived/blocked interest.
NRBC Bank has a role to play in the industry. Though it’s a fourth Generation Bank, but it has already expanded its area of
operation across the country through a large number of Branches, Sub-Branches, Collection Booths, and Agent Points. Overall
performance was satisfactory in 2019 compared to 2018 according to Financial Statements for the period ended 31 December,
2019.

B1.0: Cash Management

Cash management refers to management of cash and cash equivalent in such a way so that bank can take maximum advantage of
its liquid asset. If bank holds cash and cash equivalent more than industry average then it is under utilizing its asset. If bank holds
cash and cash equivalent less than industry average then it is taking too risk. Cash management refers to holding amount of cash
and cash equivalent in such a way that will ensure proper utilization of asset and meeting short term obligation

Figure in million(BDT) otherwise specified

Year 2019 2018 2017 2016 2015
Cash in Hand & at Bank 7,870.16 6,612.43 5,501.74 7,099.34 5,313.93
CRR 5.50% 5.50% 6.61% 6.62% 6.55%
Cash to Deposit Ratio (Including CRR) 8.12% 7.56% 8.71% 7.01% 7.74%
Operating Cash Flow per share 12.90 10.16 (5.01) 5.56 8.32

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According to MPD Circular No. 01 dated 03 April 2018 of Bangladesh Bank, Cash Reserve Requirement decreased to 5.50 %
and NRRBC Bank complied with it. a decline in percentage of deposits that need to be set aside or deposited with Bangladesh,

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The operating cash flow per share is a reliable measure of a bank’s/company’s financial strength. Cash flow per share takes into
consideration a company’s ability to generate cash. It is regarded by some as a more accurate measure of company’s financial
situation than earnings per share. In 2019, Operating Cash Flow per share indicates an increasing trend that represents Bank’s
ability to allocate more cash for each share
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B2.0: Treasury Management
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NRBC Bank has got knowledgeable experienced, erudite, professional, treasury team who are well informed about the Financial
Markets and Financial Instruments. They can take the full advantage of Investment Opportunities and contribute bank’s
profitability towards its objective.
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The team Conforms cash reserve requirements, ensure proper management of liquidity, and minimize interest rate risk on
the Bank’s statement of Financial Position. It offers a wide range of treasury products and services to corporate and individual
customers. The Bank goes for foreign exchange and derivative dealing with counterparties against counterparty credit limits,
set by the evaluation of the ability of the counterparty to meet its obligations. NRBC Bank Ltd is acting as a Primary Dealer since
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its commencement of operation 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.
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in million otherwise specified

Year 2019 2018 2017 2016 2015
Total Investment 15,298.17 8,276.75 6495.12 7,174.16 6,200.87
Investment In Govt. Securities 12,715.43 6151.26 4903.78 5,253.16 4,138.47
Ratio of Govt. Investment to Total Investment 83.12% 74.32% 75.50% 73.22% 66.74%
Net Treasury Income 1,486.06 877.88 1,236.00 1,295.69 831.03

The Table above depicts the scenario of steady growing of treasury investment over the years. The table exhibits massive upward
movement of Investment In the year 2019. Total investment increased by 84.83 percent over the preceding year. Investment
Increased to diversify the investment Portfolio which will minimize risk. Ratio of Investment in Government Securities/ total
Investment is 83.12 percent, which is 8.80 percent more than the year 2019. Net Treasury income appreciated by 69.28 percent
more in the preceding year of 2019. Bank Invested in Government Securities because of steady return and highly liquid nature of it.

B3.0: Loans and Advances

Loans advance are the lifeblood of bank. Bank’s Success is contingent upon the success of revenue generating ability of its loans
& advance. Bank’s profitability depends on the asset quality, or on revenue generating ability.

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 in million otherwise specified
Year 2019 2018 2017 2016 2015
LDOs 62,015.02 48,117.78 42,960.51 37,407.92 23,227.39
AD Ratio 82.54% 85.91% 93.07% 82.99% 79.11%
% of Large loan 45.92% 45.68% 43.20% 33.14% 25.81%
No. of loan Account 15,317 13,357 9,820 7,860 5,039
Loans and Advance of Bank increased and stood at BDT 62,015.02 million, which was BDT 48,117.78 million in preceding year. The
table depicts and 28.88 percent growth of credit over that of 2018, while reducing AD Ratio from 85.91 percent to 82.54 percent
by diverting assets portfolio into treasury investment which lucrative business avenue for the year 2019. The graph depicts an
increasing trend of number of loan account over the five years period. Number of loan account increased by 14.67 percent and
555.98 in the year 2019 from the preceding two (02) years of 2018 and 2017.
Bank also achieved the target of SME, Women Entrepreneur Loan and Agricultural loan set by Bangladesh Bank. The Bank
approved loan application on the basis of its merit, credit worthiness, security market reputation etc. This Prudential credit
management team helps the bank to build a healthy assets portfolio and attains quality growth.

Figure in (BDT) % in the

Sector
Million Portfolio
Agricultural Industry 740.53 1.19%
Textile 2607.33 4.20%
RMG 6710.57 10.82%

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NBFI 911.2 1.47%
Food 211.51 0.34%
Beverage 288.75 0.47%
Pharmaceutical
Chemical
Electrical
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117.08
276.29
0.48%
0.19%
0.45%
Construction 3858.12 6.22%
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House Building Residential 1131.31 1.82%
Leather 58.3 0.09%
Service Industry 3706.34 5.98%
Transport 248.02 0.40%
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Basic Metal 0.13 0.00%

Capital Market 93.87 0.15%
Car loan 5.25 0.01%
Insurance 105.3 0.17%
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Consumer Finance 2501.16 4.03%

Printing 770.23 1.24%
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Ship Breaking 430.04 0.69%

SME 13314.47 21.47%
Staff Loan 532.34 0.86%
Steel 2387.25 3.85%
Trade Industry 11162.92 18.00%
Card 400.85 0.65%
Other Manufacturing Industry 8577.07 13.83%
Others 572.76 0.92%
Total 62,015.02 100.00%
SME, RMG, Trade Finance and other manufacturing industry are three sectors where bank lends most of its Loan-able fund. Bank
diversified its loan portfolio by lending money in textile, service industry, consumer finance, steel industry and especially in retail
credit as well. Number of loan account also increased and reached at 15,317, which is 14.67 percent higher than preceding year’s.
The table illustrates that Loans & Advances grow over the year by diversification of Loan fortfolio.

C1.0: Deposits
Total deposits of the banking sector reached at BDT 1,132,317 million in 2019 from 1,079,870 million in 2018 and BDT 987,490
million in 2017, showing an increase of 9.36 percent from the year 2017 to 2018, and a 4.86% increase from 2018 to 2019.
NRBC Bank mobilizes fund from surplus economic unit and deploy those to deficit economic units. Presently bank has 75 Branches

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among which eight (08) new Branches, thirty two (32) sub-Branches, 305 (BRTA + SRO) collection booths, and total 568 agent
points to bring the unbanked people in the banking channel. Deposits of the bank is increased by 32.86 percent over that of
previous year 2018.

Figure in million (BDT) otherwise specified

Year 2019 2018 2017 2016 2015
Deposits 71,857.90 54,083.28 45,236.44 44,143.28 28,880.68
Cost of Deposit 6.98% 7.27% 6.47% 6.91% 8.40%
Number of Deposit A/c 370,731 257053 163,990 122,179 76,890
% of low cost deposit mixing (CASA) 35.22% 28.96% 29.08% 29.29% 16.28%

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Bank focuses mainly on Low-cost and No cost deposits i.e. CASA (CD, SB and SND) which are the key factors for a bank to ensure its
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sustainability and to augment its shock absorbing capacity. At Present 35.22 percent of total deposit is no cost or low cost deposit.
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C2.0: Shareholder Equity Value

Shareholder Equity is the most common financial metric employed by analyst to assess financial health of a Bank. Equity and
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capital are growing over the years consistently over the years. In the 7th AGM, the shareholder approved 04 percent stock dividend
and 08 percent cash Dividend that were recommended by the Board of Directors. Steady increasing trend of equity, capital and
Net Asset Value (NAV) of the bank reflect its Financial Strength.

Figure in million (BDT) otherwise specified

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Particular 2019 2018 2017 2016 2015

Shareholder Equity 8,189.94 7,047.61 6,410.80 5,728.73 5,152.92
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Regulatory Capital 8,907.26 7,357.66 6,780.60 6,200.61 5,444.76

NAV (Tk.) per share 14.34 13.71 13.00 12.42 11.5
Capital Surplus/(Deficit) 599.48 1,130.82 1,164.20 1,319.26 2,567.96
Risk Weighted Assets 66,462.20 52,565.30 49,922.70 45,942.09 28,768.03
Capital Adequacy Ratio 13.40% 14.03% 13.58% 13.50% 18.93%
Capital - Core (Tier I) 7,883.21 6,778.83 6,235.40 5,690.27 5,106.67
Capital - Supplementary (Tier II) 1,024.04 592.83 545.1 510.34 338.09
Capital Adequacy must be 10 percent of Risk Weighted Asset and 2.50 percent capital conservation buffer for 2019 which is
last of the implementation of BASEL III. As per BASEL Accord Minimum Capital Requirement must be at least 12.50 percent of
Risk weighted Assets (RWA) for the year 2019. Bank has maintained 13.40 percent which is higher than the Minimum Capital
Requirement (MCR) . The enforcement of regulated level of this CRAR ratio is intended to protect depositors interest and
promote stability and efficiency of Financial System.
Net Assets Value (NAV) per share stood at Tk.14.34, which is higher than previous year by 4.60 percent. Strong equity and capital
are 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 16.21 percent, 21.27 percent and 26.44 percent respectively. The table depicts Bank’s ability
of maintain capital adequacy ratio above the regulatory requirements. The Bank also maintained CRAR against the incremental
growth of the Risk Weighted Assets by ensuring diversification of the portfolio in SME, Retail and Corporate segments.

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D1.0: Comparative Financial Metrics
Banking operation involves, the legal transactions executed by bank in daily business such as mobilizing fund, providing loan,
mortgage and investment, depending on the focus and size of the bank. In other word, practice and procedure that bank use
to ensure customers transaction are completed accurately and appropriately. Income of bank is generated from four (04) main
sources, among are the interest Income from loans and advances, Investment Income, Commission and fee based Income, and
other operating income. Expenditure can be categorized into two (02) major categories, which are interest paid on deposit and
borrowings and operating expenses. The table shows some indicators to compare the performance of the bank between two
periods
Figure in million (BDT) otherwise specified

Particulars 2019 2018 % Change

Total operating income 4,851.15 3,704.24 30.96%
Total operating expense 2,264.00 1,814.99 24.74%
Operating profit (Profit before provision and tax) 2,587.14 1,889.26 36.94%
Profit before tax for the year (PBT) 2,042.51 1,562.38 30.73%
Tax provision 544.64 326.88 66.62%
Profit after tax (PAT) 1,497.87 1,235.51 21.24%
Earnings per share (EPS) 2.01 1.82 10.72%
Cost income ratio 46.67% 49.00% -4.75%

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Burden Ratio 15.04% 13.89% 8.34%
Return on investment (ROI) 1.47% 1.50% -2.53%
Return on assets (ROA)
co 4,851.15 3,704.24 30.96%
The table depicts that operating income of the bank increases by 30.96 percent, and stood Tk. 4,851.15 million, operating expenses
are also increased by 24.74 percent for newly opened Branch, Sub-Bunches, ATMs, BRTA Collection booths, Sub-Registry booths,
and Agent Points. Though operating expenses increased but Operating Profit shows an increasing trend, which shows the ability
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of the bank to ensure proper utilization of its assets. Provision for tax increased with operating income. We can see a significant
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increase of Earnings per Share (EPS). Return of Investment (ROI) is increased by 8.34 percent compare to previous year.

D2.0: NRBC Group’s Performance Versus NRBC Bank’s Performance

NRBC Bank is operating all over the country through its 75 branches, 32 Sub Branches, 65 BRTA Collection Booth, & 240
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Sub-registry booth and 03 strategic agent banking partners who have 567 sub-agent points all over the country. Expansion of
network is creating opportunity for business to channelize the fund from surplus group to deficit group or to the area where there
are lot of investment opportunities.
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Figure in million (BDT) otherwise specified

Group NRBC Bank Ltd
Operation Result
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2019 2018 Change (%) 2019 2018 Change (%)

Interest Income 7,037.32 5,801.72 21.30% 7,024.97 5,792.02 21.29%
Interest Expenses 4,487.31 3,621.49 23.91% 4,488.13 3,643.92 23.17%
Investment Income 1,340.37 865.07 54.94% 1,331.16 877.88 51.63%
Non-Interest Income 1,001.37 699.11 43.23% 983.14 681.77 44.20%
Non-Interest Expenses 2,288.59 1,840.25 24.36% 2,264.00 1,814.99 24.74%
Total Income 9,379.06 7,365.90 27.33% 9,339.27 7,351.67 27.04%
Total Expenses 6,775.90 5,461.74 24.06% 6,328.38 5,462.41 15.85%
Operating Profit 2,603.15 1,904.16 36.71% 2,587.14 1,889.26 36.94%
Provision for Loans and Others 551.39 299.93 83.84% 544.64 299.93 81.59%
Profit Before Tax 2,051.76 1,569.89 30.69% 2,042.51 1,562.38 30.73%
Provision for Tax 898.19 632.24 42.07% 894.24 628.04 42.39%
Profit After Tax 1,153.57 937.65 23.03% 1,148.26 937.65 22.46%
Cost income ratio 46.78% 49.14% -4.79% 46.67% 49.00% -4.75%
Return on Equity (ROE) 15.04% 13.89% 8.31% 15.07% 13.95% 8.04%
Return on assets (ROA) 1.47% 1.50% -2.26% 1.46% 1.50% -2.59%
Cost of Deposit 6.98% 7.27% -3.99% 7.27% 7.27% 0.00%
Net Assets Per Value 14.36 13.71 4.74% 14.34 13.7 4.68%
Earnings Per Share 2.01 1.82 10.47% 2.01 1.82 10.72%

12
All indicators reflects positive growth over previous year, especially investment income and non-interest income increased
significantly. As a result operating profit of NRBC Group is increased by 36.71 percent over the preceding year and profit after
tax increased by 23.03 percent. Cost Income Ratio decreases and reaches at 46.78 percent because operating income of bank
increased more than operating expensed proportionately. Growth in Investment income, commission fee based Income, and
other operating income contribute to incremental effect in the Return on Equity (ROE).
Return on Equity (ROE) Increased and stood at 15.04 percent bur Return on investment (ROI) decreases and reaches at 1.47
percent. Due to negative growth of cost to income ratio by 2.79 percent, a significant growth in loan and advances amounting Tk.
13,897.23 million did not make any positive growth in the Return of Assets (ROA), rather 3 basis points decreased compared to
2018 (1.50% to 1.47%).

D3.0: NRBC Group’s Performance versus NRBC Subsidiary’s Performance

Group performance of NRBC and its Subsidiary Company M/s. NRBC Bank Securities limited revealed mediocre performance
according to consolidated financials of NRBC Bank Limited on 31 December 2019. NBRC Bank limited and NRBC Bank Securities
limited contributed in group profit by 99.54% and 0.46% respectively. Balance sheet size of NRBC Securities increases by 28.15
percent but Profitability of NRBC Securities increases by 60.37 percent.

Figure in million (BDT) otherwise specified

Particulars NRBC Subsidiary Consolidated
Cash in Hand & at Bank 7,870.16 149.61 7,920.82
Investment 15,298.17 327.50 15,625.66
Loan & Advances 62,015.02 138.41 62,059.56

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Fixed Assets 506.22 7.08 513.30
Others Assets 3,571.82 40.68 3,251.22
Borrowing
Deposits
Other Liabilities
Shareholder Equity
. co 1,290.23
71,857.90
8,780.02
8,189.94
121.11
36.56
412.01
- 1,290.23
71,879.79
8,815.29
8,241.95
Balance Sheet Size 90,118.08 663.55 90,227.26
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Operating Profit 2,587.14 16.01 2,603.15
Profit after Tax 1,148.26 5.31 1,153.57
The table exhibits’ the minimal contribution of subsidiary’s contribution to the group. Components of statement of financial
position and statement of profit and loss indicates nominal role to the consolidated financial statements. Size of balance
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sheet is only 0.74 percent of NRBC Bank limited. Loans &Advance, Equity, and operating profit are 0.22, 5.03 and 0.62 percent
respectively. Though their contrition to the group is minimal but financial indicator show their better performance over preceding
years. Operating profit, profit before tax and profit after tax of the subsidiary are increased by 7.45, 23.23 and 60.37 percent
respectively over that of preceding year.
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D4.0: Multiplier Analysis

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In multiplier analysis DuPont is important to determine the factors have an effect on the profitability, DuPont determines the
factors that drive the company’s ROE and Profit Margin which shows operating efficiency. Asset turnover reflects asset use
efficiency and leverage factors reflect how much debt is being used.
Figure in Million (BDT) otherwise Specified

Particulars 2019 2018 2017 2016 2015

DuPont 14.62% 12.38% 15.31% 15.97% 11.55%
ROE (Shareholder Return) 15.04% 13.88% 15.30% 15.97% 11.55%
Net Profit margin 12.30% 12.68% 13.92% 14.78% 11.92%
Total Asset turnover 0.1188 0.1186 0.1201 0.1308 0.1538
Financial Leverage/Equity Multiplier 10.0035 8.2316 9.156 8.2596 6.299
Operating Profit Margin 27.70% 25.79% 27.60% 26.15% 19.63%
Operating profit margin increased and reaches at 27.70 Percent from 25.79 percent but net profit margin decreased and reached
at 12.30 percent from 12.68 percent. Operating profit margin increases but net profit margin decreases because asset quality
gone down and provision against classified loans & advance and provision for investment increase. The table exhibits a declining
trend in asset turnover ratio and upward trend in case of financial leverage/Equity multiplier. Efficiency of utilization of total assets
turnover decreased compared to 2018 due to lower yield of Investment and deterioration of quality of loans & Advance. Bank is
highly levered firm and financial leverage/equity multiplier goes up a bit.

13
D5.0: Quarterly Performance study
Operational performance was consistently improving from first quarter to fourth quarter. But third quarter was upsetting due to
huge pile of classified loan compel transfer all interest income to suspense account. Stock market suffered a lot in 2019 since the
market index of Dhaka bourse losing 16.73 per cent in the outgoing year resulting no profitability over the year. Furthermore,
additional provision has been kept Tk.75.79 million for 2019 against investment in share market. Bangladesh Bank introduce
“One Time Exit’ policy” in May 2019 based on default loans as of December 31, 2018 by depositing 2% down payment having
10-year loan repayment schedule with interest rate @ 9% which to be complete with three months, but default borrow defer till
December with the direction of high court division of Bangladesh. Therefore, loan recovery process speed up in the 4th quarter
especially in December and prudent treasury management is the outcome to hit the profitability in the 4th Quarter.

Figure in Million(BDT) otherwise Specified

Particulars Q1, 2019 Q2, 2019 Q3, 2019 Q4, 2019 *QA, 2019 Annual, 2019
Net Interest Income 550.91 623.19 524.56 838.19 634.21 2,536.85
Non-Interest Income 326.29 440.81 572.85 974.34 578.57 2,314.30
Operating Income 877.21 1,064.00 1,097.41 1,812.53 1,212.79 4,851.15
Operating Expenses 467.52 579.55 582.94 634.00 566.00 2,264.00
Operating Profit 409.69 484.45 514.48 1,178.53 646.79 2,587.14

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Provisions 128.63 388.27 588.27 (560.53) 136.16 544.64
Tax Effect 125.08 41.08 (77.99) 806.07 223.56 894.24
Net profit
*QA = Quarterly Average
155.98 55.10
co 4.20 932.99 287.07 1,148.26

D6.0:Trend of Financial Performance of five Year (05) years

.
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The Board of its 92nd meeting affirm the performance of the Bank during the year 2019 and appreciated the combined efforts of
the Chairman, the Board of Directors, the Management and all employees of the Bank. Most of the branches were performing
during the year 2019 and therefore a promising sizeable profit. All parameters in 2019 are progressive in term of business concern.
Almost all the financial indicators show an increasing trend over the last year. Remittance increases by 63.30% over the last year.
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Operating profit, profit before tax, and profit after tax show increasing movement over the five (05) year period.

Figure in Million(BDT) otherwise Specified

key operating and Financial data 2019 2018 2017 2016 2015
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Loans & Advances 62,015.02 48,117.78 43,000.28 37,408.28 23,227.39

Deposits 71,857.90 54,083.28 45,236.44 44,143.28 28,880.68
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Equity 8,189.94 7,094.31 6,410.80 5,728.73 5,152.92

Balance Sheet Size 90,118.08 67,142.86 57,529.35 53,619.10 36,259.01
Total Contingent Liabilities & Commitments 27,408.20 19,455.25 16,591.43 12,934.95 8,651.75
Import 332,206.16 26,229.88 24,786.54 18,133.73 12,377.90
Export 292,160.01 25,091.91 22,459.69 16,885.62 11,772.60
Remittance 20,938.62 996.19 399.3 409.74 399.3
Operating Profit 2,587.14 1,889.26 1,841.92 1,537.52 922.42
Profit Before Tax 2,042.51 1,562.38 1,397.82 1,307.90 792.73
Profit After Tax 1,148.26 934.34 928.94 869.03 560.08
Earnings Per Share 2.01 1.82 1.89 1.9 1.26
Capital - Core (Tier I) 7,883.21 6,778.83 6,235.42 5,690.27 5,106.67
Capital - Supplementary (Tier II) 1,024.04 592.83 545.13 517.33 338.09
Total Capital 8,907.26 7,371.66 6,780.55 6,200.61 5,444.76
Capital Surplus/(Deficit) 599.48 1,130.82 1,137.39 1,319.26 2,567.96
Statutory Reserve 1,458.84 1,050.34 737.87 462.77 203.22
Retained Earnings 1,015.13 841.32 730.51 627.86 419.29
Capital Adequacy Ratio 13.40% 14.03% 13.52% 13.50% 18.93%
Cost income ratio 46.67% 49.00% 47.76% 49.03% 53.81%
Return on investment/Equity (ROI/ROE) 15.04% 13.89% 15.30% 15.97% 11.55%

14
 Figure in Million(BDT) otherwise Specified
key operating and Financial data 2019 2018 2017 2016 2015
Return on assets (ROA) 1.46% 1.50% 1.67% 1.93% 1.83%
Cost of Deposit 6.98% 7.27% 6.47% 6.91% 8.40%
Loan Deposit Ratio 82.54% 85.91% 92.18% 82.99% 77.00%
% CL to Total Loans & Advances 3.20% 2.94% 2.46% 0.52% 0.27%
All the indicators of statement of financial position such as Loans & Advances, Deposit, Equity and Balance Sheet size reflects
positive growth over the previous year, that exhibits the strength of Bank. Indicators of income, expenditure, profit reflects
positive trends over the five year period, except slight decreases of return on asset over the preceding two (02) years. Indicators
measuring regulatory capital such as Tier-1 & Tier-2 Capital of the bank are rising gradually and bank has adequate capital surplus.
Credit is growing by maintaining credit Deposit ratio (ADR) set by the regulator. Though Non-Performing Loan (NPL) increases
sharply but remains in the acceptable level and much lower than industry average. Management is very much concerned and
took necessary initiatives to keep Non Performing Loan (NPL) zero. The Board of Directors monitored the Non-Performing loan
(NPL) position regularly and gave necessary directives in this regards.

D7.0: Foreign Trade Operation

NRBC Bank export finance includes working capital loan to import/ procurement raw materials, spares Parts, Payment of overhead
expenses including salary, wages, utility bills and settlement of export bills. Export financing technique includes Back to Back
Letter of Credit, Export time loan, Export Cash Credit Hypo, Overdraft, EDF Loan, FDBP, Loan against accepted bills, and IDBP

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Export finance includes Import Pant & Machineries, Raw Material, Trading Goods, Spare &Parts and all permissible item
manufacturing trading, service industry and users, and pay Import duty. Export financing technique includes LC (sight/Stance),
LTR, Term Loan, Hire Purchase, Lease Finance, Bank Guarantee, and Time Loan,

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Remittances are erroneous source of income. Remittance can be used for any type payment including invoices or other obligations.
Remittance can be sent via a wire transfer, electronic payment system, mail, draft, or cheque.
Bangladesh export volume was USD 40,530 million higher than export of 2018 USD 36,660 million and export items were textile,
.
Garments, Leather & Leather Goods, pharmaceutical products, chemical Products, ceramic Products, bicycle, jute &jute products,
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IT ,Agricultural Products and Frozen Foods.
Bangladesh import volume was USD 55,440 million higher than export of 2018 USD 54,460 million and import items include
Textile and Textile Articles, Machinery and mechanical appliance, Electrical Goods, Mineral products, Vegetable Goods, Metal &
metal Products, Chemical & Allied products, Vehicle and Aircrafts.
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Remittance can be used for any type of payment including invoices or other obligations. It plays an increasingly important role in
the economics of small and developing countries.

Figure in Million(BDT) otherwise Specified

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Particulars 2019 2018 2017 2016 2015

Import 33,220.62 26,229.88 24,786.54 18,133.73 12,377.90
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Export 29,216.00 25,091.91 22,459.69 16,885.62 11,772.60

Remittance 2,093.86 996.19 610.03 409.74 399.30
RMA 170 160 152 148 135
NOSTRO-Account 12 13 12 13 11
Foreign Remittance Sub-Agencies 4 5 5 5 3
In 2019 import, export and remittance shows an upward growth rate over the five (05) year period. Import Export and Remittance
grew up by 26.65 percent, 16.14 percent and 110.19 percent respectively.
Bank is trying to coherent with the Govt.’s initiative of offering two percent incentive on money remitted by Bangladeshi expatriate
through its large network all over country to align with the government spirit and also restore the goal of establishment of this
bank.

E1.0: Maintenance of Required Reserve [Section 184 (1b) of the act]

Referring to the previous years, NRBC is consistently maintaining or complying the 20% statutory reserve in pursuant to Section
24 of the Bank Companies Act 1991 (as amended in 2018) and expecting to maintain it as long as cumulative balance of statutory
reserve reaches at the equal level of sponsored paid up capital.
In 2018, statutory reserve exceeded Tk. 1,000 million landmarks due to duly consistently comply the proviso of the act. In 2019,
Contribution to statutory reserve is ever highest since its operation from 2013. Following table shows that 5 year statutory
reserve position which is remarkable:
15
 Figure in Million(BDT) otherwise Specified
Statutory Reserve Movement 2019 2018 2017 2016 2015
Beginning Balance 1,050.34 737.87 462.77 203.22 44.38
Transfer during the period from pre-tax profit 408.50 312.48 275.09 259.55 158.84
Closing Balance of Statutory Reserve 1,458.84 1,050.34 737.86 462.77 203.22
% of Change over previous Period 38.89% 42.35% 59.44% 127.72% 357.91%
% of Change from base period 2015 617.86% 416.85% 263.08% 127.72% 100.00%
From the above table shows that Bank is able to maintain more than 100% Statutory Reserve over previous years after meeting
adequate provsions for loan & advances which settled in the tripatriat meeting held on March 23, 2020. Net Assets Value (NAV)
stood Tk.14.34 (14.36 Consolidated basis) which is 4.97% higher than the year 2018. No other reserve was maintained/proposed
by Board of Directors during the year under consideration except Tk.5.01 million as revaluation reserve which is required to
maintained DOS circular # 15 Dated 31/10/2005, DOS circular letter # 03 dated 07/02/2007 and DOS circular letter # 05 dated
26/05/2008.
Income Tax ordinance 1984’s new proviso 16G (Charge of tax on retained earnings, reserve, surplus, etc) “ In any income year, total
amount transfer to retained earnings, any fund, or surplus, called by whatever name, by a company registered under companies
Act 1994 and listed to any stock exchange exceed seventy percent of the net inocme after tax , tax shall be payable at the rate of
ten percent on the amount so transferred in that income year.”
Though this new proviso 16G (Charge of tax on retained earnings, reserve, surplus, etc) is not applicable for NRBC as yet to listed
any Stock exchange. But it may hurt to the Banking sector due to recent Bangladesh Bank DOS Circular No. 03: Dividend Policy for

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banks for the year 2019. This new proviso 16G also contradictory with the transfer to 20% statutory reserve from year of profit
in pursuant to Section 24 of the Bank Companies Act 1991, as amended 2018. Herewith the distribution profit after tax line with
new proviso 16G , if so comply:

Distribution of profit after tax

co Figure in Million (BDT) otherwise Specified

Amount(BDT)
Profit after tax 1,148.26
.
Transfer to statutory reserve 408.50
bd
Recommendation for Dividend 685.31
Retained earnings for the Year 54.45
Remaining retained profit in compliance of section 16G of ITO 1984 4.74%
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E-2.0: Recommendation of dividend [Section 184 (1c) of the act]

The novel coronavirus pandemic, which has led to economic stagnation all over the world, will likely see to reconsider the dividend
policy of the Banking Sectors. Furthermore recent Bangladesh Bank circular compels the Banking Sector to declare the dividend
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based on Risk Based Capital Adequacy (Revised Regulatory Capital Framework for banks in line with Basel Ill).
Bangladesh Bank took the decision to boost banks capacity to absorb the strain on their capital base from the ongoing economic
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fallout due to Covid-19 pandemic with view to determine the amount of earnings that can be retained in the firms as a source
of Financing.
The Board of Directors is also aligned with the regulations as well as try to protect the interest of all sponsors/ shareholders amid
of ensuring stable growth of the Bank by adopting prudent dividend declaration. Dividend history of the last
four years of the Bank:
Figure in Million (BDT) otherwise Specified

2018 2017 2016 2015 2014

Form of Dividend
Rate Taka Rate Taka Rate Taka Rate Taka Rate Taka
Cash - - 5% 245.00 5% 228.97 6% 266.76 1% 44.46
Stock 11% 565.95 5% 245.00 7% 320.56 3% 133.38 0% -
Considering recent circular of Bangladesh Bank regarding adequate Risk Based Capital Adequacy, the Board of Directors in its
98th meeting held on 04th May 2020 recommended for 12% dividend comprising of Cash and Stock Dividend for the year 2019
Therefore, distribution of dividend, if approved by the AGM, shall be as under :

Figure in Million (BDT) otherwise Specified

Rate of Dividend Recommended by the Board Form Amount Remarks
4% Stock 228.44 Paid up capital will be Tk. 5939.39 million
8% Cash 456.88
16
This rational proposition of dividend will help strengthen the capital base as per BASEL III requirement which has undergone
implementation by Bangladesh Bank since 2014 and, on the other hand, it will build confidence of the investors especially as Bank
is going for Initial Public Offering (IPO) with amount Tk.12,00.00 million only.

E-3.0: Material changes before issue of Directors’ Report [Section 184 (1d) of the act]:
Bank has got permission to establish Islamic banking window from Bangladesh Bank vide # BRPD(P-3)745(60)/2019-9275 dated
November 14, 2019 according to aspiration of Board as decided in its 66th meeting held on May 28, 2018.. The Board mentioned
that it is a great opportunity for expanding our business owing to the fact that there lies a strong public demand and an underlying
system that has been pushing the popularity of Islamic Banking system to an all-time high. Since Bangladesh is a country where
over 90% of her nationals are Muslims, their perceptions towards Islamic banking are very positive. Soon after in its 89th meeting,
Board form a Shariah Supervisory Committee in compliance with Bangladesh Bank Guidelines for Islamic Banking wherein of Mr.
M Azizul Huq acted as Chairman.
The NRBC Islamic Banking window name and style as “Al-Amin Islamic Banking” having registration from Patents, Design and
Registrations office.
The historic day on January 20, 2020, Bank inaugurated Islamic Banking window “Al-Amin Islamic Banking” of NRBC’s 08 (eight)
Branches as per approval of Bangladesh Bank:
1. Principal Branch (Dhaka South)
2. Gulshan Branch (Dhaka North)
3. Rajshahi Branch

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4. O. R. Nizam Road Branch,
Chittagong
5. Barisal Branch
6.
7.
Khulna Branch
Rangpur Branch
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8. Sylhet Branch
.
No other material changes has occurred
bd
between the end of the financial year and
the date of the Directors’ Report placing
before the AGM except the Board of
Directors in its 98th Board Meeting held 04th
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May 2020 recommendation of Dividend @

12% dividend comprising of 8% in the form
of cash and 4% In the form of Stock for the
year 2019 which is expected to be approved Inaugration ceremony of “Al-Amin Islamic Banking” on 20th January 2020
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in the 7th Annual General Meeting (AGM) of

the Bank.
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E-4.0: 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 except
scale of operation by its members that have occurred during the financial year 2019:

E-4.0 (a) Change in Company’s Business Nature [Section 184 (2a) of the Act]:
2019 was one of the dramatic year for the NRBC where bank is able to change its scale of operation which was first time in the
history of banking industry to adapt the concept of Sub-Branch.
Banking sector enter into new era of sub-branch concept having full-fledged banking service to the people aims to bring unbanked
and underprivileged people under banking network. Banking via sub-branch was a new horizon after agent banking. NRBC was
the pioneered sub-branch banking after getting permission in August of 2018.
Presently NRB Commercial Bank has the highest 272 sub-branches & booths in operation in the country. Having agreement
with the Bangladesh Road Transport Authority (BRTA) and land registration offices, bank collected about Tk. 3000.00 million as
deposits through the sub-branches while disbursed loans to the tune of around Tk.220.00 million
In early 2020, NRBC launched the Shariah based Islamic banking window titled “Al Amin” with a view to strictly follow the
compliances of the Shariah policy. Shariah Supervisory Committee of Islami Banking window also expect that Islamic banking
window “Al Amin” shall provide state-of-the-art banking services

17
E-4.0 (b) Change in the company’s subsidiaries or in the nature of the business [Section 184 (2b) of the
Act]:
Subsidiary company NRBC Bank Securities Limited earned sizeable profit despite of capital market passed another gloomy year
as the core index of the Dhaka Stock Exchange (DSE) lost 18.5 per cent year-on-year in 2019, after hitting a 42-month low. NRBC
Bank Securities Limited was declared@3% cash dividend for the year 2019 which approved in 4th Annual General Meeting (AGM)
of the company. 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 cutter the portfolio business by pooling funds into stock market that
match with the declared financial objectives of the Bank. Approval process yet to pending to start its operation.
Proposed company M/s. NRBC Asset Management Limited will earn interest and fee based income by pooling fund and clientele
service to the prospective customers. But NRBC Management limited will earn fee based income by providing ancillary service.

E-4.0 (c) Change in classes of the Bank [Section 184 (2c) of the Act]:
No other changes occurred during the financial year except expansion of network to cover geographical location in Bangladesh.

E-5.0 Information and Explanation contained in the Auditors’ Report [Section 184 (3) of the Act]:
Like as previous year Auditor of M/s. K. M. Hasan & Co., Chartered Accountants and M/s. MABS & J Partners, Chartered
Accountants have sat with Management of the Bank and Inspection team of Bangladesh Bank on March 23, 2020 to finalize

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the audited financial statements. In that tripartite meeting, a threadbare discussion has been made regarding assets quality,
provision, fair presentation of Audited Financial Statement and internal Control system. Financial statements being finalized by
adopting recommendation by both Statutory Auditors and Inspection team of Bangladesh Bank.

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The Board Audit Committee has reviewed the audited financial statement as well as the content of matter of emphasis in the
Auditors’ Report. The committee recommend 10% dividend comprising 8% in the form of cash and 4% In the form of Stock for
adaption in the 96th Board meeting as well as matter of emphasis in the audit Report.
.
The Auditors’ did not mention any material misstatement or significant disagreement in the Auditors’ Report on the Bank’s
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Consolidated Financial Statements. The Auditors expressed an unmodified opinion except matter of emphasis regarding
compliance of IFRS 16 [Recognized lease rental instead of right-of-use asset and a lease liability. [IFRS 16:22] 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 2019.
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Explanation against Auditors’ matter of emphasis regarding compliance of IFRS 16 is as under:

 A departure note has given in the note 2.2 (iii) specify that Bank has prepared under guideline BRPD circular no. 14
dated 25 June 2003 (First Schedule of under section 38 of Banking Company Act, 1991 wherein lease rent of the office
Premises must be shown in the Profit and Loss account under “Rent, taxes, insurance, electricity etc.
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 Unless otherwise direction from Bangladesh Bank, Bank has to adherence to the relevant section of the act.
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E-6.0 Future outlook:

Banks are now the safety net that will have to catch the company in free fall. Although the full extent of Corona virus pandemic
cannot yet be predicted but there is no time to lose in preventing the worst. Banks therefore, to reach out their customers now
and guide them through the difficult times as little damage as possible. After all, the primary goal is to get the majority through
this extreme situation and then return to a normal state. Factors that will affect the future banking operation especially the year
2020 are described briefly. Government gas taken several initiatives to combat the epidemic Corona Virus like tax measures
Economic stimulus, and employment related measures
o The government of Bangladesh has taken policy decision to put a cap on lending and deposit rate effective from April 01
2020. Accordingly lending rate offered by schedule bank should not exceed 9.0 percent where deposit rate should not
exceed 6.0 percent, but no restriction imposed here.
o Bangladesh bank directs banks to transfer all interest accrued or to be accrued from 1st April 2020 to 31st May 2020
to an interest free blocked account, in what can be construed as its boldest move yet amid the pandemic. A blocked
account refers to an account that does not allow for the indiscriminate withdrawal but instead has certain restriction or
limitation on when, how much, and by who, capital can be withdrawn
o Falling interest rate likely to derive savings rate that banks use to attract customer deposit and mobilize deposit. This rate
cuts are likely to put pressure on those bank that rely on savings accounts in order to support new business. Moreover
savers may withdraw huge amount of fund to the fear of meeting corona virus attack related expenses. COVID-19
scenarios are going to affect job holders, Banks are expected to face major difficulties with consumers and SME loans

18
o Bangladesh bank announces moratorium of loan payment until 30 June 2020 and such borrower will not be defaulter.
Government announces BDT 50,000.00 million stimulus packages to export oriented industries especially in RMG for
providing salaries and repayment of which is two years excluding 06 (six) months grace period.
o Bangladesh bank already asked scheduled bank to suspend adverse classification of loans till 30th June, 2020. The
expected intervention is a move to support businessman and traders who are not able repay their loan on time
o Government introduces another stimulus package of BDT 67,750.00 million planned to implement in immediate, short
and long phases through four (04) programs which are increasing public expenditure, formulating stimulus package,
widening social safety, and increasing monetary supply
o Government agencies announced tax relief and economic relief in response to covid-19 pandemic. Tax relief measures
include: lifting of import taxes on medical and protective items like test kid and safety products. Though government
has not announced any specific relief measures concerning he deadline for filing tax return or remitting tax payment in
response to Covid-19 pandemic
o Required Cash Reserve Requirement (CRR) reduced from 5.5 percent to 5 percent on bi-weekly basis. Then after Cash
Reserve Requirement (CRR) reduced to 4 percent on bi-weekly basis and 3.5 percent of daily basis effective from April
15, 2020
o Bangladesh Bank’s REPO interest rate reduced from 6 percent to 5.25 percent from 5.25 percent effective from April 01,
2020.
o Bangladesh Bank announces to buy back securities from security market. Banks act as a Primary Dealer of securities. This
will help ease their liquidity Banks permitted to extend LC Usance Period for import payment against agricultural and
chemical fertilizers from 180 days to 360 days and of life savings drugs from 90 days to 180 days

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o Banks are instructed not to deduct any fees/charge/ interest against late payment of credit card bill from 15 March 2020
to 31 May 2020
o
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Bangladesh bank announces refinance scheme of BDT 50000 million to agricultural sector, and it will be financed from
Bangladesh bank’s own sources. Under this scheme the affected customer will be able to avail up to 20 percent extra
on the existing loan facilities. In that case, Bangladesh bank will charge 1 percent from bank and commercial bank will
charge 4 percent from the customer. This loan will be repayable within 18 month including six (06) months grace period
.
o Advance Deposit Ratio (ADR) increased to 87 percent from 85 percent. In case of Islamic banking Investment Deposit
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Ratio (IDR) increased to 92 percent from 90 percent
o In some cases, Bangladesh bank has decided that bullet repayment will be permissible which limited for import of raw
material only up to USD 0.50 million. Now it is permissible for other usance import under suppliers of buyer’s credit.
Usance period can be below six (06) month or above one (01) year.
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o Bangladesh bank instructed banks to provide loans at 4 percent interest from bank’s own fund and Bangladesh bank will
provider bank another 5 percent interest as subsidy. It is also instructed bank not to charge Customer interest on loans
disbursed before April 2020, until further notice
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o Bangladesh bank is permitting foreign owned/controlled companies operating in Bangladesh to take short term working
capital loan one (01) year extendable to another one year from their parent companies for funding payment of salaries
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for the next three (03) months. The facilities are not applicable for those companies availing loan from BDT 50,000
Million stimulus package
o Bank with Capital Adequacy Ratio (CAR) in relation to Risk Weighted Asset (RWA) of 12.50 percent or above will be
permitted to declare 30 percent dividend of which cash dividend may be up to 15 percent. Bank with Capital Adequacy
Ratio (CAR) between 11.25 to 12.50 percent will be permitted to declare 15 percent dividend of which cash dividend
may be up to 7.50 percent. Bank with Capital Adequacy Ratio (CAR) below 11.25 percent will be permitted to declare
10 percent dividend of which cash dividend may be up to 5.0 percent. The cash dividend may be paid out only after 30
September, 2020
o Selected bank branches to remain open for reduced hours during the general holiday and providing only prescribed
banking services
o Banks may without repayment guarantee, advance credit up to USD 0.5 million for import of corona virus related life
savings drugs, medical kits/equipment and other essential medical items
o Asian Development bank (ADB) has provided a USD 600 million loan as financial assistance to fight the pandemic. It has
also provided 0.35 million emergency grants and 1.30 million on-off cash subsidy; SAARC Development Fund (SDF) has
allocated USD 5 million for the COVID-19 Emergency projects for all eight (08) SAARC member states subjects to certain
eligibility criteria.
o Increased in non-performing loans will negatively affects financial markets, portfolio selection and monitoring may
become tighter. This may negatively impact on credit growth.
o Inflation risks from higher global commodity prices and exchange rate movements are rising. Consumer finance may
suffer from elevated inflation expectation.
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 o 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.
o 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.
o COVID-19 pandemic has set to deal a heavy blow to the country’s overseas job market and the amount of remittance
inflow, by now a large number of Bangladeshi lost their job or received low wage or no pay. Besides numerous Bangladeshi
workers who came home on leave and those who were waiting for fly could not join work abroad.
o As per road map for implementation of Basel III, banks will require maintaining additional buffer capital of 2.50 percent
from 2020 onwards and this may cause pressure on Capital Management resulting in curtailing fresh lending.
o The borrowings by the government will of course raise the government debt-GDP ratio. But this should not alarm the
government because the ratio is currently quite low at only 31.0 per cent of GDP and debt servicing liabilities are also
correspondingly low at about 2.0 per cent. Two or three percentage point increase in the ratio will not impose an
unbearable burden on the government budget. Some discipline in budget spending or rapid economic growth in future
can bring down the ratio if the government desired so. But the borrowing now can be used to reduce the suffering of
the people during the pandemic

E-6.0: NRBC Bank’s Measures

Banking industry of Bangladesh mainly depends on local and international trade finance. People working all the different sector
like service, manufacturing areas, export oriented industry (RMG, leather, jute, etc.) and trading are affected by Corona Virus
pandemic and their income will go down. If income goes down, savings will go down. Loan able fund at bank will decline. If

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bank fails to provide loan then investment will go down and economic growth of the country will slow down. NRBC Bank as a
participant, important role player, of the financial market needs to take some initiatives to face the consequences that arises
corona virus (COVID-19) Pandemic that are:
o
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Focuses on cost effectiveness because of the cap on lending rate @9% effective from April 01 2020 as prescribed by
Bangladesh Bank. The average cost of deposit of the bank is almost 7 percent. 28.96 percent is no cost deposit and low
cost deposit and 71.04 percent is high cost deposit. NRBC bank Limited seeks to enrich no cost deposit and low cost
deposit in its deposit mix
.
o The central bank may subsidize
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the interest payment on deposit
and borrowing as scheduled bank
transfer their income from loans
and advance to interest free
blocked account. if it does NRBC
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bank will take the advantage of it

and authorize people are already
working on it
o
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The effect of cap on loan interest

rate effective from April 01 2020
brings down the cost of deposit. All
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the players in the market reduced

their rate of interest for different
deposit products. so NRBC Bank
limited can offer customized
products to attract depositors
o Expansion of network in form of,
Branches, Sub-branches, collection
booths and agent points. This
network is strength for the bank Town Hall Meet with a commitment to increase the outreach of branches and
that can be used to reach un- sub-branches with a view to providing modern banking facilities
bankable people throughout the
country.
o NRBC bank has introduced NRBC Planet apps that are designed to offer customer to do all kinds of financial transaction
such as fund transfer, utility bill payment, QR cash withdrawal service, mobile recharge, etc. it also comes up with a
range of amazing cash back and discount offers along with many other privilege to give customer a delightful experience.
Satisfied customer will make personal sellers for the bank that will give the bank an edge over its competitors
o EGP may create a huge business chunk for Bank and few of its automation process will helpful to the customer. This
digital platform creates another avenue for the bank. Bank also work as sole agent at district level for collection BRTA
fees and land registration fees at Thana/Upozila level which help bank to boost up Deposit base.
o Bangladesh Bank has expressed their satisfaction overall activities of the Board of directors along with the Management.
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 The central Bank satisfied over the role of NRBC Bank Board of directors and took back the observer. Board of directors
strictly maintained compliance and corporate governance and brought back respect for the bank in the mind of the
customer
o Loanable fund will increase because Cash Reserve Requirement (CRR) further reduced to 4 percent on bi-weekly basis
and 3.5 percent of daily basis with effect from April 15, 2020 and Advance Deposit ratio (ADR) increased to 87 percent
from 85 percent
o Islamic Banking of NRBC Bank limited creates new avenue for bank. Bangladesh has experienced phenomenal growth in
Islamic banking following strong public demand for the system. Since its inception in 1983, Islamic banking industry has
recorded robust performance and industry now accounted for 20.00 percent market share of the industry. The industry
has immense potential for further expansion as Bangladesh is Muslim majority country with a vibrant economy of 6.00
percent real economic growth. Of course, NRBC Islamic banking wing will have this advantages.

E-7.0: Continuity of Extra-Ordinary gain/Loss by NRBC Bank:

Extraordinary gains or losses refer to infrequent and unusual gains or loss and which is not part of the bank’s ordinary, day to-day
operations. There is no such a gain or losses during the year under reporting due to no change in scale of operation, accounting
policy, corporate tax policy, foreign exchange, accruals/disposing on long-term contracts, etc.
However, new proviso 16F “Charge of tax on stock dividend” and 16G “Charge of tax on retained earnings, reserve, surplus”
according to Finance act, 2019 are much more challenging for Banks who are listed in the capital market. Recent DOS Circular of
Bangladesh “Dividend Policy for banks for the year 2019” will hurt to the listed Banks who will not be able to declare dividend
despite of retained earnings resulting extra tax pay loss without having any adjustment with corporate tax.

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Though these new provisos were not applicable for NRBC, but comply the requirement of paying more than 50% cash
dividend among the declared dividend and more than 30% dividend of the retained profit during the year 2019.

E-8.0:Related party transactions and its disclosure co

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 Statements.
.
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E-9.0: Initial Public Offering (IPO)
The Board its 90th meeting decided to raising Paid up Capital as recommended by Bangladesh Bank despite of Bangladesh
Securities and Exchange commission (BSEC) extended up to March 2021 for submission of application of Initial public offering
(IPO) considering existing sluggish capital market.
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Recent amendment of Bangladesh Securities and Exchange Commission (Public Issue) Rules, 2015 in the BSEC Notification Dated
25.07.2019 where it is mentioned that Clause (c) of sub-rule (3) of rule 3 shall be replaced by the following new clause (c):

Quote:
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“(c) It offers at least an amount equivalent to 10% (ten percent) of its Paid-up Capital or Tk.30 (thirty) crore at par value, whichever
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is higher:
Provided that post IPO paid-up capital shall not be less than Tk.50 (fifty) crore;”

Unquote:
Owning to the view of (Public Issue) Rules, 2015, The Board is decided go for IPO only for Tk.1200.00 million instead of sponsored
paid up capital Tk. 4,446.06 million considering strength of the capital market in Bangladesh and Bangladesh Bank already been
accorded the approval for raising Tk.1200.00 vide # BRPD(P-3)745(60)/2020-2360 dated February 2020. The Board hope IPO
process will successfully complete and the then all proceed from IPO will be used as income earning asset.

E-10.0: Remuneration of Directors

The Bank does not pay any remuneration to its Directors other than purpose stated in the relevant Bank Companies Act and
prevailing BRPD circulars. As per the BRPD circular no.03 dated 18/01/2010 and BRPD Circular letter no. 11 dated 04/10/2015,
Chairman may be provided with a car, telephone, Office chamber and private secretary. Directors are entitled to fees and other
benefits for attending Board, EC, Audit Committee, RMC and Shariah supervisory committee meeting. Managing Director is paid
salaries and allowances as per approval of the Board and Bangladesh Bank.

E-11.0: Fair Presentation of the Financial Statements by the management

The Management of NRBC bank 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 IAS/IFRSs. The said consolidated financial
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statements prepared by the Management as at and for the year ended on December 31, 2019 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.
KM Hasan & Co, and M/s. MABS & J Partners, Chartered Accountants, have also provided their opinion on the same by issuing an
unqualified audit report except matter of emphasis regarding compliance of IFRS 16 [Recognized lease rental instead of right-of-
use asset and a lease liability. [IFRS 16:22]. We are referring page No. 32-34 (three pages) to see the audit report issued by the
external auditors.

E-12.0: 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” and application software 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. KM Hasan & co and M/s. MABS & J Partners, 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.

E-12.0: Consistently apply of Appropriate Accounting Policies as well as Accounting Estimates

Accounting policies are the specific principles, bases, conventions, rules and practices 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 Bank have been stated in detail in

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the notes # 2 in the Audited Financial Statement.

E-13.0: Follow up of IAS & IFRS in preparation of Financial Statements

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The financial statements of the Bank as at and for the year ended 31 December 2019 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
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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 (xv) in the financial statements.
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E-14.0: The internal control system

NRBC has a sound system of internal control to safeguard shareholders’ investments and the Bank’s assets. The Board retains
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the ultimate responsibility for its operations, though has delegated to the Audit Committee for the review of the adequacy and
effectiveness of the system of internal control. The key functionalities that have been established in reviewing adequacy and
integrity of the system of internal control are as follows:
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o Various committees have been formed to assist the Board in ensuring that the Bank’s operations are in line with the
corporate objectives, policies, strategies, instructions and the annual budget that have been approved.
o The internal audit unit of the Bank checks the compliance with policies and procedures and the effectiveness of the
internal control system on an ongoing basis using samples and rotational procedures and highlight significant findings in
respect of any non-compliance. Audits are carried out on all units/departments and branches, in accordance with the
annual audit plan approved by the Audit Committee of the Board.
o The Audit Committee of the Board reviews internal control findings identified by the Internal Audit of the Bank, Inspection
Team of Bangladesh Bank, External Auditors and Management, and evaluates the adequacy and effectiveness of the risk
management and internal control systems.
o The Board of Directors hold meetings at suitable intervals with senior management, internal auditors, external auditors
and the Audit Committee for evaluating the effectiveness of internal control system.
o Internal audit reports are submitted to the Audit Committee without management filtering and the internal auditors
have direct access to the Audit Committee as and when required.
o 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.
o Self-Assessment of Anti-Fraud Internal Controls is carried out on semi-annual basis and is sent to Bangladesh Bank as per
requirement of DOS Circular Letter No. 10 dated 09 May 2017 issued by BB.

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 The External auditors i.e. KM Hasan & Co, Chartered Accountants, MABS & J Partners, Chartered Accountants also affirm
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.

E-15.0: Protection of minority shareholders’ interest

53 expatriates had taken initiative for formation of NRBC Bank and Board of Director represent or acts on behalf of shareholders.
Presently no minority shareholdings exist in the proposition share structure. NRBC Bank’s subsidiary M/s. NRBC Bank Securities
has 10% minority shareholding whose interest duly protect in line with statutory remedy in section 233 of the Companies Act,
1994 of Bangladesh.

E-16.0: Going Concern of NRBC’s Business Ability

Going concern is one of the fundamental assumptions in accounting on the basis of which financial statements are prepared.
IMF reveal that Asia’s economic growth this year will grind to a halt for the first time in 60 years, as the Coronavirus crisis takes an
“unprecedented” toll on the region’s service sector and, apart from IMF prediction, Bangladesh Bank (BB) suspended the interest
on all types of loans of schedule commercial Bank for the months of April and May to help borrowers overcome the economic hit
of Covid-19. This postures may create doubt the Bank’s ability to continue as a going concern.
NRBC Bank is assess its going concern ability wherein no significant doubt upon Bank’s ability to continue its business in the
foreseeable future. The consolidated financial statements of the Bank have also 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

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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 assessment
the going concern ability mentioned in their Auditors’ responsibility of the audit report issued by them.

E-17.0: Objective for recommendation dividend by Board

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NRBC bank is going to achieve another milestone to be listed with the stock exchanges in Bangladesh and Bangladesh Bank
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has issued clearance for raising Tk.1200.00 million from market through IPO. NRBC Bank follows stable dividend policy since
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2014, balanced approach between consistent dividend payout ratio and increase in value of share despite of recent decision of
offloading share in the capital market.
The Board of Directors of NRBC Bank recommended for 12% dividend comprising 8% in the form of cash and 4% In the form of
Stock for the year 2019 in its 97th meeting held on 04 May 2020 which is different from composition of 2018 to attained stipulated
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objective of IPO and such dividend will be entitled on the shareholding at record date on 20 May 2020.

E-18.0: Board’s statement on bonus share or stock dividend as interim dividend

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The Board of Directors did not declare/recommend any bonus or stock dividend in the total 15 Board Meetings which were held
during the year 2019 before Financial Statements was placed before Board by Management. The Board of Directors also affirmed
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that Company i.e. NRBC Bank Limited has no intention to declare any interim dividend in form of Bonus or Stock Dividend in 2020

E-19.0: Board meetings and Members’ attendance thereof

The Board of Directors that stands as on December 31, 2019 was approved by the 6th Annual General Meeting held on 20 July
2019. The AGM accordingly forwarded the applications to Bangladesh Bank for approval and in return, Bangladesh Bank on
August 26, 2019 approved reconstitution of 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.
The Board holds meeting on a regular basis usually once in a month, but emergency meetings are called when required. During
the year 2019, as per approval of 1st Extra-Ordinary General Meeting (EGM) which was held on July 21, 2018 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 2019, total 15 Board Meetings were held. The attendance records of those meetings are as follows:

Serial Total Number of

Name of the Members Status
Number Meetings Attended
1 Mr. S M Parvez Tamal Chairman 15 / 15
2 Mr. Mohammad Shahid Islam, MP Vice Chairman 12 / 15
3 Mr. Mohammed Adnan Imam Director 15 / 15

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 Serial Total Number of
Name of the Members Status
Number Meetings Attended
4 Mr. Rafikul Islam Mia Arzoo Director 14 / 15
5 Mr. Abu Mohammad Saidur Rahman Director 11 / 11
6 Mr. Mohammed Oliur Rahman Director 10 / 15
7 Mr. Abu Bakr Chowdhury Director 06 / 15
8 Mr. Loquit Ullah Director 08 / 15
9 Mr. Mohammed Nazim Director 12 / 15
10 Dr. Nuran Nabi Director 10 / 15
11 Mr. Mohammed Manzurul Islam Director 14 / 15
12 Mr. AKM Mostafizur Rahman Director 11 / 11
The attendance records of the above include presence of respective Alternate Directors and presence through video conference
where applicable.

E-20.0: The Pattern of shareholding 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

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Bank i.e. all share hold by Sponsors/Promoters of the Bank.
b) The Shareholding Pattern:

Holding Range Number of Shares

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The Shareholding Pattern of the Sponsors/Shareholders on record date May 20, 2020:

Number of Sponsors/
Shareholders
Percentage of Shares
30000001 and above 103,584,002 3 18.14%
.
25000001-30000000 133,627,858 5 23.40%
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20000001-25000000 72,746,309 3 12.74%
15000001-20000000 71,512,966 4 12.51%
10000001-15000000 100,010,087 8 17.51%
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5000001- 10000000 52,609,258 8 9.22%

01-5000000 37,004,644 34 6.48%
Total 571,095,124 65 100.00%
c) Ownership Composition base on record date :
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As on record date May 20, 2019 for entitlement of dividend for year ended 31 December 2019, Directors’ of NRBC Bank hold
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44.53% of total share and remaining share hold by Sponsor/Shareholder 55.47%. No institutions were held any share of the
Bank.

2019 2018
Status with the Bank % of total % of total
Number of Shares Number of Shares
Shareholding Shareholding
Directors 254,298,098 44.53% 284,606,711 55.32%
Sponsor/Shareholder 316,797,026 55.47% 229,893,423 44.68%
Institutions - - - -
d) Shareholding structure of Directors are as follows ( as of 31 December 2019):

No of % of Total
SL Director Status
Shareholding Shareholding
1 Mr. S M Parvez Tamal Chairman 32,296,190.00 5.66%
2 Mr. Mohammad Shahid Islam, MP Vice Chairman 24,579,951.00 4.30%
3 Mr. Mohammed Adnan Imam Director 18,072,684.00 3.16%
4 Mr. Rafikul Islam Mia Arzoo Director 29,866,294.00 5.23%
5 Mr. Abu Mohammad Saidur Rahman Director 24,009,300.00 4.20%
6 Mr. Mohammed Oliur Rahman Director 24,157,058.00 4.23%

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 No of % of Total
SL Director Status
Shareholding Shareholding
7 Mr. Abu Bakr Chowdhury Director 25,689,951.00 4.50%
8 Mr. Loquit Ullah Director 26,143,674.00 4.58%
9 Mr. Mohammed Nazim Director 26,201,895.00 4.59%
10 Dr. Nuran Nabi Director 2,568,995.00 0.45%
11 Mr. Mohammed Manzurul Islam Director 1,302,993.00 0.23%
12 Mr. A K M Mostafizur Rahman Director 19,409,113.00 3.40%
Total 254,298,098.00 44.53%
e) Shareholding position of Managing Directors, CEO, CFO, CS and HoICC along with their spouse and minor child :
Bank has just got NOC from Bangladesh Bank for listing with Stock Exchange in Bangladesh with amount of Tk. 1200.00
million from Capital Market through IPO. After completion of due process, NRBC Bank’s share will be traded in the Share
Market which create opportunity to hold share that’s way Ex-officio mentioned above was not possible to hold any share
through Beneficiary Owners (BO) Account until the process completed. At the same, Presently trading of share has to be
completed with permission of the Board and, therefore, none of Ex-Officio i.e. Chief Executive Officer, Company Secretary,
Chief Financial Officer and Head of ICC held any share during reviewing period.

E-21.0: Rotation of Director

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At the Ordinary General Meeting in every subsequent year one third (1/3rd ) of the Directors who have been holding longest in
office shall retire from the office as well as a Director retiring by rotation shall be eligible for reelection according to the clause
106, 107 and 108 of Article of Association (AOA) of the Bank. The Bank will follow the conditions and rotate the Directors as per
laws.

E-22.0: Appointment of Auditors of the Bank [Section 210 of the act]

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M/s. K. M. Hasan & Co. Chartered Accountants and MABS & J Partners, Chartered Accountants was statutory auditors for the year
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2019 and has completed 1st year and 3nd year of Audit of the Bank respectively. M/s. MABS & J Partners, Chartered Accountants
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)
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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.
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Unquote
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However, all cases final approval of appointment 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. K. M. Hasan & Co. Chartered Accountants and MABS & J Partners, Chartered Accountants were statutory auditors for
the year 2019 and has completed 1st year and 3nd year of Audit of the Bank respectively. M/s. MABS & J Partners, Chartered
Accountants is not eligible for appointment.
The appointment of auditors yet to recommend by Board of Directors till 98th meeting and it will be placed before 99th meeting
that will be held before AGM. Thereafter final accord of the appointment of auditor(s) along with remuneration will be effected
in the 7th Annual General Meeting (AGM) of the Bank. There upon forward the matter to Bangladesh bank for taking consent/
certification of being appointed eligible auditors of the Bank for the Financial Year 2020 or hold office up to next AGM.

E-23.0: Contribution in the Govt. Revenue Collection

Bangladesh’s real economy is getting devastated due to the pandemic COVID-19 outbreak resulting revenue mobilization has
fallen significantly. However, Govt. introduce the new regime of VAT system with amid of easy of the revenue collection process
by automated the system.
As a conscientious and responsible corporate entity NRBC Bank is always compliant with the Tax and VAT Rules and Regulation of
the country. NRBC Bank deposited/paid corporate tax on income, withheld Tax, VAT and Excise Duty to government exchequer in
time to improve tax/GDP ratio, which is a gauge of a nation’s tax revenue relative to the size of its economy measured by Gross
Domestic Product (GDP). Movement of NRBC Bank corporate tax on income, withheld Tax, VAT and Excise Duty payment over
25
the last five (05) years are as follows:

Khat of Govt. Revenue 2019 2018 2017 2016 2015

Corporate Tax paid by bank & Tax deduction at Source 1,417.04 1,089.14 975.61 618.35 305.64
VAT 120.31 89.93 84.9 53.98 36.07
Excise Duty 104.63 90.05 66.15 45.34 29.69
Total 1,641.98 1,269.12 1139.41 717.67 371.4

Corporate tax of Tk. 751.04 million and VAT of Tk. 120.31 are the direct appropriation profit which continuously increase over
the previous year’s indicate that volume of business and profitability increase in every year resulting contribution to the Govt.
Revenue become healthy. Bank has deposited Tk. Tk.666.00 the Tax at source tax which is 21.33% higher than the year 2018. On
the other hand Excise Duty from depositors and loan account holders was deposited Tk.104.63 million in 2019 is 16.19% higher
than 2018. Overall contribution to the government treasury increase by Tk. 372.86 million in the year 2019 which is 29.38 %
higher than 2018. This augmentation of NRBC Bank is considerably than the NRB Target by Financial 2020-21.

Closure of Share Transfer Books and Record Date for Dividend

The Board of Directors in its 98th meeting held on May 04, 2020 decided that the Register of Members and the Share Transfer
Books of the Bank will be closed on Wednesday, May 20, 2020 for the purpose of the 7th Annual General Meeting (AGM) of the
Shareholders of the Bank to be held on June 07, 2020 and to determine the names of the Members who would be entitled to

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dividend, if any, declared by the Bank for the financial year ended 31 December 2019.
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 Wednesday, May 20, 2020.

7th Annual General Meeting

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The 7th Annual General Meeting (AGM) of the Company will be held on 7th June 2020, Sunday, at 12:00 noon (Bangladesh Standard
.
Time) through Video Conference due to present COVID pandemic situation as per Directive of BSEC [Ref. SEC/SRMIC/04-231/932
dated 24 March 2020] and Bangladesh Bank [Ref. BRPD Circular Letter no. 09 dated 23 March 2020]. The Directors’ Report and
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Financial Statements were adopted in the 98th Board Meeting held on the May 04, 2020 for presentation and approval of the
Shareholders in the AGM.
Acknowledgements
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I would like to thank my colleagues for their valuable time and contributions in guiding the Company to the right direction
though presently we passing a critical time of COVID Pandemic. I also express my gratitude for all the guidance and co-operation
received from the Bangladesh Bank and regulatory agencies. However, the outcome of the year 2019 wouldn’t be possible
without relentless support and encouragement from all stakeholders. As a 4th Generation Bank, NRB Commercial Bank Limited
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will explore various avenues of financial services to meet the ever changing demand of the society. Teamwork, prompt and
prudent decision making, efficient, prompt and customized service, and efficient use of resources & technologies are the reason
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behind NRBC Bank’s growth over the preceding Year

NRBC Bank 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 a sustainable
organization to become peerless in the Banking Industry.
Best regards and best wishes to all.
On behalf of the Board of Directors,

S M Parvez Tamal
Chairman

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Audit committee Report

27
Dear Shareholders and Stakeholders,
I am pleased to present our Annual Audit Committee Report, which depicts the activities of the Audit Committee of the Board
(ACB) throughout the year and the insight it had while disposing the issues.
I have been discharging my duties as the Chairman of the Audit Committee of the Board since December 27, 2017 duly elected
by the Board of Directors in its 61st Board Meeting held on December 10, 2017 in line with the BRPD Circular No. 11 dated
October 27, 2013 and the Bangladesh Securities & Exchange Commission (BSEC) Notification on Corporate Governance dated
June 03, 2018. The Audit Committee was formed with the objectives to establish a platform for a complaint and secured banking
structure in the Bank. On behalf of the Board, the Audit Committee strives to ensure effective implementation of the process and
procedures set out in the Business Plan & Policies. The Audit Committee also reviews the internal control regime and compliance
status of the bank as a whole.

Functions of the Audit Committee

The Audit Committee is a Committee of the Board of Directors responsible for oversight of the financial reporting process,
selection of the external auditor, and review of the audit reports, both internal & external. The Committee assists the Board
of Directors to fulfill its corporate governance and oversee the responsibilities in relation to the entity’s financial reporting,
internal control system, internal & external audit functions and compliance with applicable laws, rules & regulations. The main
responsibilities of the Audit Committee are as follows:
- Review adequacy of Internal Control System,
- Review Financial Reporting Process & Financial Statements,

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- Review Internal Audit & Inspection Reports and External Auditors Report (Management Report),
- Monitor Internal Control Risk management Process.
-
-
Monitor compliance culture,
Recommendation for appointment of External Auditors,
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- Compliance of rules & regulations, etc.
.
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Particulars of the Audit Committee
During the year 2019, the Audit Committee of the Board was reconstituted in the 85th Meeting of the Board of Directors held
on August 27, 2019 in accordance with the BRPD Circular No. 11 dated October 27, 2013 issued by Bangladesh Bank comprising
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04 (four) directors of the Board:

1. Mr. Rafikul Islam Mia Arzoo - Chairman

2. Mr. Mohammed Nazim - Member
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3. Mr. Mohammed Manzurul Islam - Member

4. Mr. AKM Mostafizur Rahman - Member
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As per regulatory guidelines, the Company Secretary of the Bank acts as the Secretary to the Audit Committee. Senior officials of
the bank attend the Meetings on invitation.

Meetings of the Audit Committee and Major Focused Areas

Bangladesh Bank has suggested banks to hold at least 04 meetings in a year. The Audit Committee of NRB Commercial Bank
Limited held 05 (five) meetings in the year 2019 and had detailed discussions and review sessions with the Heads of Internal
Control & Compliance, Credit Risk Management, Special Asset Management, Chief Financial Officer, other Bank Officials and
also with the External Auditors to discuss the Bank’s Financial Reporting, Audit Review, Internal Control & Compliance position,
recovery of Non-Performing Loans (NPL) and other relevant matters. Further the Committee discussed about the audited findings
and remedial suggestions on various issues that need improvement. The Audit Committee instructed Management to follow
those remedial suggestions and monitored accordingly. Meeting dates are as follows:

Sl. Audit Committee Meeting Date of Meeting

1. 25th Meeting of the Audit Committee January 21, 2019
2. 26th Meeting of the Audit Committee March 28, 2019
3. 27th Meeting of the Audit Committee May 27, 2019
4. 28th Meeting of the Audit Committee September 24, 2019
5. 29th Meeting of the Audit Committee October 29, 2019

28
During the year under review, the Committee, inter alia, focused on the following activities:
Reviewed the Internal Audit Plan for the year 2019 and followed up on its implementation status.
Reviewed the Draft Financial Statement and recommended the same to the Board for consideration after the
meeting with the representatives of the External Auditors.
Reviewed the Management Letter issued by the External Auditors, Management response thereto and corrective measures
taken by the Bank to avoid recurrence of such lapses mentioned therein.
Reviewed the Quarterly Financial Statement of the Bank prepared to evaluate the performance for onward submission to
the shareholders as a statutory requirements.
Reviewed the major findings identified by the Internal Auditors with a view to take corrective action on time.
Reviewed the major findings of Bangladesh Bank Inspection Reports and advised the Management of the Bank to take
corrective steps for rectification of lapses/irregularities toward fulfilling the compliance requirements of the regulators.
Reviewed the Self-Assessment Reports of Anti-Fraud Internal Controls of the Bank.
Reviewed the Integrated Annual Health Report of the Bank as a regulatory requirement and advised the Management for
further improvement of the Financial Health of the Bank.
Examined whether the findings & recommendations made by the Internal Auditors for removing the irregularities are duly
acted upon by the Management in running the affairs of the Bank.

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Placed Compliance Reports/Minutes before the Board detailing the decisions taken/recommendations made by the
Committee in its various Meetings for information/concurrence of the Board.

Acknowledgement co
The Audit Committee of NRB Commercial Bank Limited expresses its sincere thanks and gratitude to the Board of Directors,
Management and the Auditors for their support in smooth operation of the Bank.
.
bd
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Rafikul Islam Mia Arzoo

Chairman of the Audit Committee of the Board
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29
 Responsibility Statement of MD and CFO
NRB Commercial Bank Limited
Declaration by Managing Director and CFO’s
May 04, 2020

The Board of Directors

NRB Commercial Bank Limited
114, Motijheel C/A
Dhaka-1000

Sub: Declaration on Financial Statements for the Year Ended on December 31, 2019

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, 2019, have been prepared
incompliance with International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS), as applicable

m
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 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 and
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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.
In this regard, we also certify that:
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(i) We have reviewed the financial statements for the year ended on December 31, 2019, and that to the best of our knowledge
and belief:
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(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 Md. Mukhter Hossain

Chief Financial Officer Managing Director & CEO

30
 m
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Auditors’ Report along with

Audited Financial Statements to
the Shareholders

31
 Independent Auditor’s Report
To the Shareholders of
NRB Commercial Bank Limited
Report on the Audit of the Consolidated and Separate Financial Statements
Opinion
We have audited the consolidated financial statements of NRB Commercial Bank Limited and its subsidiaries (the
“Group”) as well as the separate financial statements of NRB Commercial Bank Limited (the “Bank”), which comprise
the consolidated and separate balance sheets as at 31 December 2019 and the consolidated and separate profit and
loss accounts, consolidated and separate statements of changes in equity and consolidated and separate cash flow
statements for the year then ended, and notes to the consolidated and separate financial statements, including a
summary of significant accounting policies and other explanatory information.
In our opinion, the accompanying consolidated financial statements of the Group and separate financial statements
of the Bank give a true and fair view of the consolidated financial position of the Group and the separate financial
position of the Bank as at 31 December 2019, and of its consolidated and separate profit and loss accounts and its
consolidated and separate cash flows for the year then ended in accordance with International Financial Reporting
Standards (IFRSs) as explained in note 2.00.

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 Auditors’ Responsibilities for the Audit of the Consolidated and
Separate Financial Statements section of our report. We are independent of the Group and the Bank in accordance
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with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA
Code) and Bangladesh Bank, and we have fulfilled our other ethical responsibilities in accordance with the IESBA
Code and the Institute of Chartered Accountants of Bangladesh (ICAB) Bye Laws. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion.
.
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Emphasis of Matter
We draw attention to note # 2.11(v) to the consolidated financial statements where the bank disclosed the reason
for unrecognizing the Right of use asset and the lease Liability in the financial statements of the bank as per para 9
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of IFRS-16 ‘Lease’ although the bank has a rented Head office and Branch offices under the lease agreements. Our
opinion is not modified in respect of this matter.

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
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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
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 misstat-
ed.
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
32
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 pro-
cess.

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 state-
ments 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 scepticism

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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,
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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.
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• 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 related disclosures made by management.
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• 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 condi-
tions that may cast significant doubt on the Group’s and the Bank’s ability to continue as a going concern.
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If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report
to the related disclosures in the consolidated and separate financial statements or, if such disclosures are
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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.
• Evaluate the overall presentation, structure and content of the consolidated and separate financial state-
ments, including the disclosures, and whether the consolidated and separate financial statements repre-
sent the 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 respon-
sible for the direction, supervision and performance of the group audit. We remain solely responsible for
our audit 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.

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
33
 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 Au-
ditor’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:
(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 ad-
ministrative 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 audit-
ed by Haque Bhattacharjee Das & 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 consolidat-
ed in the financial statements;

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(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)
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the expenditures incurred were for the purpose of the Bank’s business for the year;
(viii) the consolidated financial statements of the Group and the separate financial statements of the Bank
have been drawn up in conformity with prevailing rules, regulations and accounting standards as well
as related guidance issued by Bangladesh Bank
.
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(ix) adequate provisions have been made for advance and other assets which are in our opinion, doubtful
of recovery;
(x) the information and explanations required by us have been received and found satisfactory;
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(xi) we have reviewed over 80% of the risk weighted assets of the Bank and spent over 3,660 person hours;
and
(xii) Capital to Risk-weighted Asset Ratio (CRAR) as required by Bangladesh Bank has been maintained
adequately during the year.
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K. M. HASAN & CO. MABS & J Partners

Chartered Accountants Chartered Accountants
Home Town Apartment, (8th and 9th Floor) SMC Tower (Level - 7)
87 New Eskaton Road, Dhaka 1000 33 Kemal Ataturk Avenue
Road #17, Banani C/A, Dhaka 1213

Dated: Dhaka
04 May 2020

34
 NRB Commercial Bank Limited & Its Subsidiary
Consolidated Balance Sheet
As at 31 December 2019

At Dec 31, 2019 At Dec 31, 2018

Particulars Notes
Taka Taka

PROPERTY AND ASSETS

Cash: 3a 5,880,401,321 4,087,776,033
In Hand (Including Foreign Currencies) 3.1a 1,842,555,955 1,175,923,504
Balance with Bangladesh Bank and its agent bank (s) (including foreign currencies) 3.2a 4,037,845,366 2,911,852,530

Balance with other banks and financial institutions including Foreign Currency 4a 2,040,422,739 2,568,821,364
In Bangladesh 4.1a 1,894,223,425 2,424,367,751
Outside Bangladesh 4.2a 146,199,314 144,453,613

Money at call and short notice 5a 856,700,000 1,296,500,000

Investments 6a 15,625,662,093 8,276,747,100

Government 6.1a 12,715,430,910 6,151,260,960

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Others 6.2a 2,910,231,183 2,125,486,140

Loans and advances 7a 62,059,563,385 48,151,880,309

Loans, cash credits, overdrafts etc.
Bills purchased and discounted

Fixed assets including premises, furniture and fixtures

. co 7.2a
8a

9a
59,993,700,830
2,065,862,555

513,295,067
46,652,692,885
1,499,187,423

481,956,568
Other assets 10a 3,251,215,194 2,279,183,504
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Non - banking assets - -

Total assets 90,227,259,800 67,142,864,879

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LIABILITIES AND CAPITAL

Liabilities
Borrowings from other banks, financial institutions and agents 11a 1,290,232,047 299,272,717
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Deposits and other accounts 12a 71,879,793,228 54,085,640,209

la

Current accounts and other accounts, etc. 6,194,475,092 3,397,346,204

Bills payable 7,185,410,848 2,510,922,338
Savings bank deposits 5,238,707,700 3,693,607,998
Special notice deposits 7,306,873,965 6,232,070,145
Fixed deposits 13,795,849,738 15,794,206,953
Other deposits 32,158,475,886 22,457,486,571

Other liabilities 13a 8,815,289,154 5,663,641,146

Total liabilities : 81,985,314,429 60,048,554,072

Equity attributable to Shareholders’ of the Parent Company 8,200,744,377 7,053,640,397

Paid -up capital 14 5,710,951,240 5,145,001,340
Statutory reserve 15 1,458,843,141 1,050,341,869
Revaluation reserve 16a 5,009,947 10,945,329
Retained earnings 17a 1,025,940,050 847,351,859
Non-Controlling Interest 17b 41,200,993 40,670,409
Total Equity 8,241,945,371 7,094,310,806

Total Liabilities and Shareholders’ Equity 90,227,259,800 67,142,864,878

35
 NRB Commercial Bank Limited & Its Subsidiary
Consolidated Balance Sheet
As at 31 December 2019

At Dec 31, 2019 At Dec 31, 2018

Particulars Notes
Taka Taka

OFF - BALANCE SHEET EXPOSURES

Contingent liabilities 18 27,408,198,566 19,455,251,048

Acceptances and endorsements 7,210,588,526 6,334,904,399
Letters of guarantee 10,437,378,649 5,083,593,069
Irrevocable letters of credit 5,729,243,714 4,627,495,838
Bills accepted for collection 4,030,987,678 3,409,257,742
Other contingent liabilities - -

Other commitments
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 - -

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Liabilities against forward purchase and sale - -

Total Off-Balance Sheet exposures including contingent liabilities 27,408,198,566 19,455,251,048

Other memorandum items

Value of Travellers cheques
Value of Govt Instruments & Wage Earners Bonds
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-
-
-
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These Consolidated Financial Statements should be read in conjunction with annexed notes (1 to 49)
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Md. Mukhter Hossain AKM Mostafizur 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

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K. M. Hasan & Co. MABS & J Partenrs

Chartered Accountants Chartered Accountants

Place: Dhaka
Dated: 04 May, 2020

36
 NRB Commercial Bank Limited & Its Subsidiary
Consolidated Profit and Loss Account
For the year ended 31 December 2019

2019 2018
Particulars Notes
Taka Taka

OPERATING INCOME
Interest income 20a 7,037,315,965 5,801,721,900
Less: Interest paid on deposits and borrowings, etc. 21a 4,487,310,491 3,621,488,207
Net interest income 2,550,005,474 2,180,233,693

Investment income 22a 1,340,370,651 865,065,396

Commission, exchange and brokerage 23a 795,570,057 539,102,530
Other operating income 24a 205,801,445 159,324,218
Total operating income (A) 4,891,747,626 3,743,725,837
OPERATING EXPENSES
Salary and allowances 25a 1,268,614,174 1,003,515,679
Rent, taxes, insurance, electricity, etc. 26a 325,072,607 280,164,138
Legal expenses 27a 2,015,588 1,860,146
Postage, Stamps, Telecommunication, etc. 28a 29,921,930 24,316,437

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Stationery, Printing, Advertisement, etc. 29a 99,862,664 54,656,512
Chief Executive’s salary and Allowance 30 16,380,000 11,739,167
Directors’ fees & meeting expenses 31a 12,028,220 15,889,761
Auditors’ fees
Charges on loan losses
Depreciation and repairs of Bank’s assets
Other expenses
. co 32a
33
34a
35a
632,500

165,810,358
368,255,817
-
448,500

174,577,190
272,400,828
-

Total operating expenses (B) 2,288,593,857 1,839,568,359

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Profit before provision (C = A-B) 2,603,153,769 1,904,157,478
Provision against Loans and Advances 36a 376,741,671 299,928,612
Provision for diminution in value of investments 37a 114,948,886 39,790,859
Other provisions 38a 59,700,136 (5,454,379)
Total provision (D) 551,390,693 334,265,092
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Profit before taxation (C-D) 2,051,763,076 1,569,892,387

Provision for taxation 39a 898,192,882 632,240,984
Current tax 39b 959,431,924 738,731,667
Deferred tax 40a (61,239,042) (106,490,683)
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Net profit after taxation 1,153,570,194 937,651,403

Appropriations:
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Statutory reserve 408,501,272 312,476,184

General reserve - -
Retained earnings carried forward 745,068,922 625,175,219
Non-Controlling Interest 530,584 330,860
Net Profit attributable to the Shareholders of Parent Company 1,153,039,610 937,320,543
Earnings Per Share (EPS) 41a 2.02 1.82

These Consolidated Financial Statements should be read in conjunction with annexed notes (1 to 49)

Md. Mukhter Hossain AKM Mostafizur 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

K. M. Hasan & Co. MABS & J Partenrs

Chartered Accountants Chartered Accountants
Place: Dhaka
Dated: 04 May, 2020

37
 NRB Commercial Bank Limited & Its Subsidiary
Consolidated Statement of Cash Flows
For the year ended 31 December 2019

2019 2018
Particulars Notes
Taka Taka

A. Cash flows from operating activities

Interest receipts in cash 7,065,445,417 5,776,487,119
Interest paid in cash (3,257,545,851) (2,627,390,674)
Dividend receipts 31,366,721 41,809,678
Fee and commission receipts in cash 797,171,426 541,531,332
Recoveries on loans previously written off - -
Payments to employees (1,299,925,759) (1,036,616,944)
Payments to suppliers (110,220,614) (61,826,154)
Income taxes paid (798,819,025) (524,849,823)
Receipts from other operating activities 42a 1,387,150,087 1,014,271,912
Payments for other operating activities 43a (815,384,162) (630,854,329)
Operating profit before changes in operating assets & liabilities 2,999,238,239 2,492,562,116
Increase/decrease in operating assets and liabilities
Sale/(Purcahsed) of Trading Security - -
Loans and advances to Other Bank(s) - -
Loans and advances to customers (13,650,213,208) (5,113,405,095)
Other assets 44a (3,702,132) 50,976,205

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Deposits from other bank(s) (1,650,000,000) 550,000,000
Deposits from customers 19,440,345,000 8,303,100,738
Trading liabilities (short-term borrowings) - -
Other liabilities 45a 172,560,833 (1,072,484,349)
Net increase/(decrease) in operating liabilities
Net cash from operating activities (A)
B. Cash flows from investing activities
(Purchase)/ sale of government securities
(Purchase)/sale of Non-trading Security
. co 46
4,308,990,493
7,308,228,733

(6,569,613,532)
(781,697,674)
2,718,187,498
5,210,749,615

(1,236,678,624)
526,000,000
(Purcahse)/Sale of Share/Securities (3,047,369) (691,136,268)
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(Purchase)/ sale of property, plant and equipment (177,227,178) (147,745,631)
Net cash from/(used) in investing activities(B) (7,531,585,753) (1,549,560,523)
C. Cash flows from financing activities
Borrowing from other Bank(s)/ Bangladesh Bank 990,959,330 (981,450,036)
Increase/(decrease) in long-term borrowings/ Loan Capital & Debt Capital 57,316,400 36,556,246
Receipt from issue of Ordinary Shares (247) (193)
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Receipt from issue of Ordinary Shares of Subsdiary’s Minority Group - -

Dividend paid - (265,000,073)
Net cash from/(used) in financing activities (C) 1,048,275,482 (1,209,894,056)
D.Net increase/(decrease) in cash and cash equivalents (A+B+C) 824,918,462 2,451,295,036
E. Effects of exchange rate changes on cash and cash equivalents - -
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F. Cash and cash equivalents at the beginning of the year 7,954,057,696 5,502,762,660
Cash and cash equivalents at the end of the year [D+E+F]* 8,778,976,158 7,954,057,696
la

* Cash and cash equivalents at the end of the year:

Cash 3.1a 1,842,555,955 1,175,923,504
Prize bonds 6.1 1,452,100 960,300
Money at call and on short notice 5a 856,700,000 1,296,500,000
Reverse Repo - -
Balance with Bangladesh Bank and its agent bank(s) 3.2a 4,037,845,366 2,911,852,530
Balance with other banks and financial institutions 4a 2,040,422,739 2,568,821,364
8,778,976,160 7,954,057,697
Net Operating Cash Flow Per Share (NOCFPS) 12.80 10.13

These Consolidated Financial Statements should be read in conjunction with annexed notes (1 to 49)

Md. Mukhter Hossain AKM Mostafizur 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

K. M. Hasan & Co. MABS & J Partenrs

Chartered Accountants Chartered Accountants
Place: Dhaka
Dated: 04 May, 2020

38
 NRB Commercial Bank Limited & Its Subsidiary
Consolidated Statement of Changes in Equity
For the year ended 31 December 2019

Reserve for
Foreign Reserve for
Assets amortization Non-
Statutory General Currency revaluation Retained
Particulars Paid-up capital revaluation of treasury Controlling Total
reserve reserve translation of treasury earnings
reserve securities (H Interest
Gain/(loss) securities (HFT)
TM)

Balance at 01 January 2019 5,145,001,340 1,050,341,869 - - - 2,165,529 8,779,800.00 40,670,409 847,351,859 7,094,310,806

Adjsutment: - - - - - - - - - -
i. Cash Dividend for 2018 -
la - - - - - - - - -
ii. 11 % Stock Dividens for 2018 565,949,900 - - - - - - - (565,949,900) -
iii. Payment of Fraction of share to shareholders (247) (247)
Opeing Balance after adjustments 5,710,951,240
n
1,050,341,869 - - - 2,165,529 8,779,800 40,670,409 281,401,712 7,094,310,559

Effects of changes in accounting policy - - - - - - - - - -

Change in Non-Controlling Interest - - - - - - - 530,584 (530,584) -
ka
Net profit after taxation for the year - - - - - - - - 1,153,570,194 1,153,570,194
Transfer to statutory reserve - 408,501,272 - - - - - - (408,501,272) -
Transfer General Reserve to Retained Earnings - - - - - - - - - -
Reserve for HFT treasury securities - - - - - - (7,802,266) - - (7,802,266)
bd
Reserve for HTM securities - - - - - 1,866,884 - - - 1,866,884
Currency translation difference - - - - - - - - - -
Balance at 31 December 2019 5,710,951,240 1,458,843,141 -
. - - 4,032,413 977,534 41,200,993 1,025,940,050 8,241,945,371

Balance at 31 December 2018 5,145,001,340 1,050,341,869 - - - 2,165,529 8,779,800.00 40,670,409 847,351,859 7,094,310,806
co
These Consolidated Financial Statements should be read in conjunction with annexed notes (1 to 49
m
Md. Mukhter Hossain AKM Mostafizur 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

Place: Dhaka
Dated: 04 May, 2020

39
 NRB Commercial Bank Limited
Balance Sheet
As at 31 December 2019
At Dec 31, 2019 At Dec 31, 2018
Particulars Notes
Taka Taka

PROPERTY AND ASSETS

Cash: 3 5,835,593,357 4,087,745,964

In Hand (Including Foreign Currencies) 3.1 1,797,747,991 1,175,893,435
Balance with Bangladesh Bank and its agent bank (s) (including foreign currencies) 3.2 4,037,845,366 2,911,852,530

Balance with other banks and financial institutions including Foreign Currency 4 2,034,563,815 2,524,684,870
In Bangladesh 1,888,364,501 2,380,231,257
Outside Bangladesh 146,199,314 144,453,613

Money at call and short notice 5 856,700,000 1,296,500,000

Investments 6 15,298,165,096 7,941,549,494

m
Government 12,715,430,910 6,151,260,960
Others 2,582,734,186 1,790,288,533

Loans and advances

Loans, cash credits, overdrafts etc.
Bills purchased and discounted
. co 7
7.2
8
62,015,021,854
59,949,159,299
2,065,862,555
48,117,783,264
46,618,595,841
1,499,187,423

Fixed assets including premises, furniture and fixtures 9 506,216,302 474,853,154

bd
Other assets 10 3,571,823,622 2,618,741,328

Non - banking assets - -

ka

Total assets 90,118,084,046 67,061,858,074

LIABILITIES AND CAPITAL

Liabilities
n

Borrowings from other banks, financial institutions and agents 11 1,290,232,047 299,272,717
la

Deposits and other accounts 12 71,857,899,976 54,083,280,144

Current accounts and other accounts, etc. 6,172,581,839 3,397,346,204
Bills payable 7,185,410,848 2,510,922,338
Savings bank deposits 5,238,707,700 3,693,607,998
Special notice deposits 7,306,873,965 6,229,710,080
Fixed deposits 13,795,849,738 15,794,206,953
Other deposits 32,158,475,886 22,457,486,571

Other liabilities 13 8,780,016,585 5,631,698,497

Total liabilities : 81,928,148,607 60,014,251,357

Total Shareholders’ Equity/Capital 8,189,935,439 7,047,606,716

Paid -up capital 14 5,710,951,240 5,145,001,340
Statutory reserve 15 1,458,843,141 1,050,341,869
Revaluation reserve 16 5,009,947 10,945,329
Retained earnings 17 1,015,131,111 841,318,178

Total Liabilities and Shareholders’ Equity 90,118,084,046 67,061,858,073

40
 NRB Commercial Bank Limited
Balance Sheet
As at 31 December 2019
At Dec 31, 2019 At Dec 31, 2018
Particulars Notes
Taka Taka

OFF - BALANCE SHEET EXPOSURES

Contingent liabilities 18 27,408,198,566 19,455,251,048

Acceptances and endorsements 7,210,588,526 6,334,904,399
Letters of guarantee 10,437,378,649 5,083,593,069
Irrevocable letters of credit 5,729,243,714 4,627,495,838
Bills accepted for collection 4,030,987,678 3,409,257,742

Other commitments
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 - -

m
Total Off-Balance Sheet exposures including contingent liabilities 27,408,198,566 19,455,251,048

Other memorandum items

Value of Travellers cheques
Value of Govt Instruments & Wage Earners Bonds
. co -
-
-
-

These Consolidated Financial Statements should be read in conjunction with annexed notes (1 to 49)
bd

Md. Mukhter Hossain Rafikul Islam Mia Arzoo

ka

AKM Mostafizur Rahman S M Parvez Tamal

Managing Director & CEO Director, BoD Chairman, Audit Committee of BoD Chairman, BoD

Signed as per annexed report on even date

n
la

K. M. Hasan & Co. MABS & J Partenrs

Chartered Accountants Chartered Accountants

Place: Dhaka
Dated: 04 May, 2020

41
 NRB Commercial Bank Limited
Profit and Loss Account
For the year ended 31 December 2019

2019 2018
Particulars Notes
Taka Taka

OPERATING INCOME
Interest income 20 7,024,973,538 5,792,018,101
Less: Interest paid on deposits and borrowings, etc. 21 4,488,125,258 3,621,733,808
Net interest income 2,536,848,280 2,170,284,293

Investment income 22 1,331,157,811 855,698,497

Commission, exchange and brokerage 23 778,123,509 519,597,814
Other operating income 24 205,017,690 158,663,048
Total operating income (A) 4,851,147,291 3,704,243,653
OPERATING EXPENSES
Salary and allowances 25 1,252,370,075 986,742,567
Rent, taxes, insurance, electricity, etc. 26 321,329,968 274,897,470
Legal expenses 27 2,015,588 1,786,836
Postage, stamps, telecommunication, etc. 28 28,816,178 23,406,075

m
Stationery, printing, advertisement, etc. 29 99,060,787 54,217,864
Chief Executive’s salary and Allowance 30 16,380,000 11,739,167
Directors’ fees & meeting expenses 31 11,968,400 15,777,661
Auditors’ fees
Charges on loan losses
Depreciation and repairs of Bank’s assets
Other expenses
. co 32
33
34
35
575,000

163,254,046
368,234,095
-
402,500

172,022,863
273,993,963
-

Total operating expenses (B) 2,264,004,137 1,814,986,965

bd
Profit before provision (C = A-B) 2,587,143,154 1,889,256,687
Provision against loans and advances 36 376,741,671 299,928,612
Provision for diminution in value of investments 37 108,194,986 32,401,536
Other provisions 38 59,700,136 (5,454,379)
Total provision (D) 544,636,793 326,875,769
ka

Profit before taxation (C-D) 2,042,506,362 1,562,380,918

Provision for taxation 894,242,009 628,038,116
Current tax 39 955,249,363 734,330,756
Deferred tax 40 (61,007,354) (106,292,640)
n

Net profit after taxation 1,148,264,352 934,342,802

Appropriations:
la

Statutory reserve 408,501,272 312,476,184

General reserve - -
Retained earnings carried forward 739,763,080 621,866,619
Net Profit attributable to the Share Holder 1,148,264,352 934,342,802
Earnings Per Share (EPS) 41 2.01 1.82

These Consolidated Financial Statements should be read in conjunction with annexed notes (1 to 49)

Md. Mukhter Hossain AKM Mostafizur 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

K. M. Hasan & Co. MABS & J Partenrs

Chartered Accountants Chartered Accountants
Place: Dhaka
Dated: 04 May, 2020
42
 NRB Commercial Bank Limited
Statement of Cash Flows
For the year ended 31 December 2019

2019 2018
Particulars Notes
Taka Taka

A. Cash flows from operating activities

Interest receipts in cash 7,053,102,990 5,766,783,320
Interest paid in cash (3,258,360,618) (2,627,636,275)
Dividend receipts 22,153,882 32,442,779
Fee and commission receipts in cash 778,123,509 519,597,815
Recoveries on loans previously written off - -
Payments to employees (1,283,784,620) (1,020,206,222)
Payments to suppliers (100,970,526) (57,785,631)
Income taxes paid (793,612,666) (516,276,517)
Receipts from other operating activities 42 1,386,362,882 1,013,607,292
Payments for other operating activities 43 (813,315,987) (630,243,020)
Operating profit before changes in operating assets & liabilities 2,989,698,847 2,480,283,542
Increase/decrease in operating assets and liabilities
Sale/(Purcahsed) of Trading Security - -
Loans and advances to Other Bank(s) - -
Loans and advances to customers (13,582,452,322) (5,082,518,552)
Other assets 44 10,122,380 44,275,622

m
Deposits from other bank(s) (1,650,000,000) 550,000,000
Deposits from customers 19,424,619,832 8,306,683,907
Trading liabilities (short-term borrowings) - -
Other liabilities 45 172,560,833 (1,072,484,349)
Net increase/(decrease) in operating liabilities
Net cash from operating activities (A)
B. Cash flows from investing activities
(Purchase)/ sale of government securities
co 46
4,374,850,723
7,364,549,569

(6,569,613,532)
2,745,956,628
5,226,240,170

(1,236,678,624)
(Purchase)/sale of Non-trading Security (781,697,674) 526,000,000
.
(Purcahse)/Sale of Share/Securities (10,747,979) (724,947,156)
bd
(Purchase)/ sale of property, plant and equipment (175,031,331) (147,603,015)
Net cash from/(used) in investing activities(B) (7,537,090,516) (1,583,228,796)
C. Cash flows from financing activities
Borrowing from other Bank(s)/ Bangladesh Bank 990,959,330 (981,450,036)
Increase/(decrease) in long-term borrowings/ Loan Capital & Debt Capital - -
ka

Receipt from issue of Ordinary Shares/Disbursement of Fraction Share (247) (193)

Dividend paid for 2018 - (245,000,073)
Net cash from/(used) in financing activities (C) 990,959,083 (1,226,450,302)
D.Net increase/(decrease) in cash and cash equivalents (A+B+C) 818,418,137 2,416,561,072
E. Effects of exchange rate changes on cash and cash equivalents - -
n

F. Cash and cash equivalents at the beginning of the year 7,909,891,134 5,493,330,062
Cash and cash equivalents at the end of the year [D+E+F]* 8,728,309,271 7,909,891,134
la

* Cash and cash equivalents at the end of the year:

Cash 3.1 1,797,747,991 1,175,893,435
Prize bonds 6.1 1,452,100 960,300
Money at call and on short notice 5 856,700,000 1,296,500,000
Reverse Repo - -
Balance with Bangladesh Bank and its agent bank(s) 3.2 4,037,845,366 2,911,852,530
Balance with other banks and financial institutions 4 2,034,563,815 2,524,684,870
8,728,309,272 7,909,891,134
Net Operating Cash Flow Per Share (NOCFPS) 12.90 10.16

These Consolidated Financial Statements should be read in conjunction with annexed notes (1 to 49)

Md. Mukhter Hossain AKM Mostafizur 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

K. M. Hasan & Co. MABS & J Partenrs

Chartered Accountants Chartered Accountants
Place: Dhaka
Dated: 04 May, 2020
43
44
NRB Commercial Bank Limited
Statement of Changes in Equity
For the year ended 31 December 2019

Foreign Reserve for Reserve for

Assets
Statutory General Currency amortization revaluation Retained
Particulars Paid-up capital revaluation Total
reserve reserve translation of treasury of treasury earnings
reserve
Gain/(loss) securities (HTM) securities (HFT)

Balance at 01 January 2019 5,145,001,340 1,050,341,869 - - - 2,165,529 8,779,800 841,318,178 7,047,606,716

Adjsutment:
i. No Cash Dividend for 2018 - - -
ii.11 % Stock Dividens for 2018
la
565,949,900 (565,949,900) -
iii. Payment of Fraction of share to shareholder - (247) (247)
Opeing Balance after adjustments
n
5,710,951,240 1,050,341,869 - - - 2,165,529 8,779,800 275,368,031 7,047,606,469

Effects of changes in accounting policy -

Net profit after taxation for the year - 1,148,264,352 1,148,264,352
ka
Transfer to statutory reserve 408,501,272 (408,501,272) -
Transfer General Reserve to Retained Earnings -
Reserve for HFT treasury securities (7,802,266) (7,802,266)
Reserve for HTM securities 1,866,884 1,866,884
bd
Currency translation difference -
Balance at 31 December 2019 5,710,951,240 1,458,843,141 . - - - 4,032,413 977,534 1,015,131,111 8,189,935,439

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

These Consolidated Financial Statements should be read in conjunction with annexed notes (1 to 49)
co
m
Md. Mukhter Hossain AKM Mostafizur 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

Place: Dhaka
Dated: 04 May, 2020
 NRB Commercial Bank Limited
Liquidity Statement
Assets and Liability Maturity Analysis
As of 31 December 2019

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 1,797,747,991 - - - - 1,797,747,991
Balance with Bangladesh Bank and its agent bank (Lcy+Fcy) 153,132,692 - - - 3,884,712,674 4,037,845,366
Balance with other banks and financial institutions 763,726,417 732,011,981 502,016,071 36,809,345 - 2,034,563,815
Money at call and on short notice
la 856,700,000 - - - - 856,700,000
Investments 442,930,110.61 503,186,058.07 3,292,035,921 5,061,650,038 5,998,362,969 15,298,165,096
Loans and advances
Fixed assets including premises, furniture and fixtures
n 12,351,309,765
-
9,118,013,602
-
18,303,510,297
-
12,015,306,207
-
10,226,881,983
506,216,302
62,015,021,854
506,216,302
Other assets 626,857,988 400,232,473 962,578,824 728,373,669 853,780,668 3,571,823,622
Non-banking assets - - - - - -
ka
Total Assets (A) 16,992,404,964 10,753,444,114 23,060,141,114 17,842,139,259 21,469,954,596 90,118,084,046
Liabilities
Borrowings from Bangladesh Bank, other banks, financial institutions and agents - - (1,290,232,047) - - (1,290,232,047)
Deposits and other accounts (12,436,074,398) (14,277,266,514) (27,348,939,962) (12,082,373,853) (5,713,245,248) (71,857,899,976)
bd
Provisions and other liabilities (693,865,916) (1,813,867,739) (1,906,978,085) (4,085,191,329) (280,113,515) (8,780,016,585)
Total Liabilities (B) (13,129,940,315)
. (16,091,134,254) (30,546,150,094) (16,167,565,182) (5,993,358,763) (81,928,148,607)
Net Liquidity Gap-Excess/(Shortage) (A-B) 3,862,464,649 (5,337,690,139) (7,486,008,980) 1,674,574,077 15,476,595,833 8,189,935,439

These Consolidated Financial Statements should be read in conjunction with annexed notes (1 to 49)
co
Md. Mukhter Hossain AKM Mostafizur Rahman
m
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

Place: Dhaka
Dated: 04 May, 2020

45
 NRB Commercial Bank Limited
Explanatory Notes to the Financial Statements
For the year ended 31 December, 2019

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 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 75 Branches, 30 sub-Branches and 145 land registration collection Booths in different
locations of Bangladesh and a subsidiary company M/s. NRBC Bank Securities Limited.

NRBC Bank Securities Limited was formed as subsidiary company after getting approval from Bangladesh Bank following guidelines of
the Bangladesh Securities and Exchange Commission (BSEC). It 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.

NRBC Bank has got permission for Islami Banking Business window vide memo no. BRPD (P-3)/745(60)/2019-9274 dated 14 November
2019 and Its soft operation inagurated on 20 January 2020 of our 08 Branches. Bank is intended to expand operation all overall the country

m
in spirit of Islami Shariah.

The Bank through its Branches and non-banking subsidiary provides a diverse range of financial services and products in Bangladesh. The

2
in Bangladesh. co
Bank has expanded its Islami Banking window in 2020 inaddition to capital market operation to cater brokerage business in the stock market

Basis of preparation of the Consolidated financial statements and Significant accounting policies
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.
bd

The Consolidated Financial statements of the Bank as at 31 December 2019 have been prepared under the 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 and other laws and rules applicable for the Bank.
ka

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.
n

2.1 Basis of consolidation

la

Separate set of records for consolidating the financial statements of the Branches including Head office are maintained at the Head Office of
the Bank, based on which these financial statements have been prepared. The consolidated financial statements of Bank and its Subsidiary
M/s. NRBC Bank Securities limited have been prepared in accordance with the IFRS 10 “Consolidated Financial Statements”. The Consolidated
Financial Statements have been prepared on basis of :
i Control over Investee i.e. Subsidiary M/s. NRBC Bank Securities limited is 90% of its shareholding or voting right
ii Using uniform accounting policies for like transactions and other events in similar circumstances as well as common reporting period
ended on 31 December 2019.
iii Combine like items of assets, liabilities, equity, income, expenses and cash flows of the parent with those of its subsidiaries
iv Offset (eliminate) the carrying amount of the parent’s investment in subsidiary and the parent’s portion of equity of subsidiary
v Eliminate in full intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between entities

2.2 Statement of compliance:

The basis of preparation of Financial statements of the Bank differ with those of IAS/IFRS and, therefore, the requirements of the Bank
Companies Act 1991, Income Tax Ordinace 1984, VAT Act, 2012 and provisions and circulars issued by Bangladesh Bank shall prevail.
As such Bank has departed from those contradictory requirements of IAS/BFRS in order to comply with rules and regulations of Bangladesh
Bank which are disclosed below:
i. Investment in shares and securities
IAS/IFRS: As per requirements of IAS 39 investment in shares and securities generally falls either under “at fair value through profit and
loss account” or under “available for sale” where any change in the fair value (as measured in accordance with 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 revealed in the Stock exchange 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.

46
ii. Revaluation gains/losses on Government securities
IAS/IFRS:As per requirement of IAS 39, T-bills and T-bonds fall under the category of “Held for Trading (HFT)” and “Held to Maturity
(HTM)”. Any change in the fair value of held for trading assets is recognised through profit and loss account. Securities designated
as “Held to Maturity (HTM)” are measured at amortised cost method and interest income is recognised through the profit and loss
account.

Bangladesh Bank: HFT securities are revalued on the basis of mark to market and at year end any gains on revaluation of securities
which have not matured as at the balance sheet date are recognised in other reserves as a part of equity and any losses on revaluation
of securities which have not matured as at the balance sheet date are charged in the profit and loss account. Interest on HFT securities
including amortisation of discount are recognised in the profit and loss account.

HTM securities which are not matured as at the balance sheet date are amortised at the year end and gains or losses on amortisation
are recognised in other reserve as a part of equity.

iii. Recognition of Lease Rent of the Office premises

IAS/IFRS: As per IFRS 16 is specify single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases
with a term of more than 12 months, unless the underlying asset is of low value. A lessee is required to recognise a right-of-use asset
representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments.

Bangladesh Bank : As per BRPD circular no. 14 dated 25 June 2003 (First Schedule of under section 38 of Banking Company Act, 1991,
lease rent of the office Premises must be shown in the Profit and Loss account under “Rent, taxes, insurance, electricity etc.”

Income Tax Ordinance 1984: According to section 53A of the act, where any specified person is a tenant/lessee in respect of a house
property, the tenant has obligation to deduct tax from the rent of such house property which is preclude to treat it’s shown Asset

m
(right-of-use asset) and the lease liability instead of as direct expense.

VAT act, 2012 : According to VAT S-074 (Place and establishment renter) refer to any person, Organiztion or Corporation, who or whose

iv. Provision on loans and advances/investments

. co
has got the right to use of the place and establishment for certain period or renewal after period expire against consideration. VAT will
be payable on basis of use of place and establishment for such period.

IAS/IFRS: As per IAS 36 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
bd
performed on an individual or collective (portfolio) basis.

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
ka

loans) has to be maintained regardless of objective evidence of impairment. Also provision for sub-standard loans, doubtful loans and
bad losses has to be provided at 20%, 50% and 100% respectively for loans and advances depending on the duration of overdue. Again
as per BRPD circular no. 10 dated 18 September 2007 and BRPD circular no. 14 dated 23 September 2012 a general provision at 1% is
required to be provided for all off-balance sheet exposures with having some exception. Such provision policies are not specifically in
line with those prescribed by IAS 36 as well as IAS 39.
n

v. Other comprehensive income

la

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.

vi. Financial instruments – presentation and disclosure

In several cases Bangladesh Bank guidelines categorise, recognise, measure and present financial instruments different from those
prescribed in IAS 39. As such full disclosure and presentation requirements of IFRS 7 and IAS 32 cannot be made in the financial
statements.

vii. 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 except the cash margin.

47
 viii. 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 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.

ix. Non-banking asset

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 Non-banking asset.

x. Cash flow statement

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 and indirect methods.

xi. 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 to day operations as per IAS 7.
Bangladesh Bank: Balance with Bangladesh Bank is treated as cash and cash equivalents.

xii. Presentation of intangible asset

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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

xiii. Off-balance sheet items

on the face of the balance sheet.

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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

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.
.
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xiv. 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.
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xv. 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 can not be netted off against loans and advances.
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Also refer to the Note 2.18 Compliance of International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs)
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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 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:
- 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.
- Government Treasury Bills and Bonds designated as ‘Held to Maturity (HTM)’ at present value using amortization concept.
- Investment in Share and Securities under quoted are valued at market price revealed in the stock exchange
- 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, estimates and assumptions that affected
the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from
these estimates.
Estimates and underlying assumptions 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 affected, if applicable.

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 Key estimates includes the following:
- Loan loss provision
- Defered 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 IAS 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.

2.8 Cash Flow Statement

Cash Flow Statement is prepared principally in accordance with IAS 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 and 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

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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

year as per following bases:

Particulars
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The liquidity statement has been prepared in accordance with remaining maturity grouping of Assets and Liabilities as at the close of the

Basis of use
Cash, Balance with other banks and financial institutions, Maturity/behavioral trend.
.
money at call and short notice etc.
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Investments Residual maturity term
Loans and advances Repayment/maturity schedule and behavioral trend (nonmaturity products).
Fixed assets Useful life
Other assets Realization/amortization basis.
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Borrowing from other banks, financial institutions and agents Maturity/ repayment terms
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

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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 rearranged to conform to the current year’s presentation.

A Assets and basis of their valuation

i. Cash and cash equivalents
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.

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 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 bill) securities, the 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:
Investment class Initial Measurement after initial Recording of changes
recognition recognition
Treasury Bill / Bond (HFT) Cost Fair value Loss to Profit & Loss Account, gain to 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 market value Loss (net) to Profit and Loss Account but no unrealised gain booking.
Prize Bond Cost None None
* Provision has been made on unrealized loss (gain net off) according to DOS Circular no. 4, dated 24 November 2011.

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iii. Loans, advances and provision
- Loans and advances are stated at gross amounts at 31 December 2019

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- Interest is calculated on a daily product basis but charged and accounted for on accrual basis. Interest 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 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
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September 2018, BRPD Cicular No. 01 dated 20 February 2018, BRPD Circular No. 07 dated 21 June 2018, BRPD Circular No. 03 dated
21 April 2019 and BRPD Circular Letter No. 07 dated 03 March 2020. The rates for provisions are stated below:

General Provision Specific Provision

Types of loans and advances
UC SMA SS DF BL
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Credit Card Financing 2% 2% 20% 50% 100%

Housing Finance 1% 1% 20% 50% 100%
Consumer Financing
Professionals to set up business 2% 2% 20% 50% 100%
Other Consumers Finance 5% 5% 20% 50% 100%
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Small & Medium Enterprise Finance (SME) 0.25% 0.25% 20% 50% 100%
Loan Reschdule under One time Exit Scheme * 50% 50%
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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 except Bills for Collection 1%
* Required provision for Loan Reschdule under One time Exit Scheme kept in General Provsion and specific provsion

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 charged to profit and loss account as expense when incurred.

Depreciation
- Depreciation on fixed assets is charged on straight-line method irrespective of all assets. The rates of depreciation are as follows:
Category of asset Rate of depreciation
Land Nil
Building and Construction 2.50%
Furniture and Fixtures 10%
Equipment and Machinery 20%
Computer and Computer Equipment 20%
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.

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- 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

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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.
.
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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 IFRS 16 “Leases”. All other leases are classified as operating
leases as per IFRS 16 “Leases” if if it not transfers substantially all the risks and rewards incidental to ownership of an underlying asset
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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-7.1). 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.
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The Bank as Lessee

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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. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest
on the remaining balance of the liability. Finance charges are charged directly against income.
Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets and, already been
depreciated.

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 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 have effect on deferred assets or
liabilities.

vi. Intangible Assets

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
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 directly 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 Ordinance-1984.

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 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 2019 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.

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

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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 co

Other liabilities are comprised of items such as provision for loans and advances/ investments, provision 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 (BFRS).
.
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iv. Dividend payments
Dividend payable is recognized when it is recommended by Board of Directors. Final dividend is recognized when it 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 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
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be established.

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
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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.

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 offbalance 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”.
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 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.
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 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
The authorized capital of the Bank is the maximum amount of share capital that the bank is authorized by 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.
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).
Paid up capital stood at Tk. 5,710.00 million after dully approved 11% stock dividend on 6th Annual General Meeting (AGM) held at 20 July 2020.

iii. Statutory reserve

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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.
.
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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
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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
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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.
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D Revenue Recognition
i. Interest Income
According to the IFRS 15 “Revenue from Contracts with Customers”, 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 commission 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

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.

vi. Interest paid on Deposits and Borrowings

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 recognised on actual and accrual basis.

viii. Taxation
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
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 Banks 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.

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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
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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
bd
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 IAS-12 “Income Taxes” (note 39) and BRPD Circular no. 11 dated 12 December 2011.
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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 benefit schemes operated by the Bank are outlined below:
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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 based on the size of the ‘fund’ meaning contributions that have been made into the scheme and investment
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returns on scheme assets. The Bank maintains one funded defined contribution plan i.e. “Provident fund” for its employees under a separate
trustee board.

Provident Fund
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. “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 has received
approval from the National Board of Revenue on 02 September 2014.

b) Defined benefit
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.
54
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.

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 Earnings Per Share

No diluted earnings per share is required to be calculated for the year as there was no scope for dilution during the year under review.

2.14 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 of Govt. savings certificates and all other fall under the memorandum
items. However, Bills for Collection is shown under contingent liabilities as per Bangladesh Banks format of reporting.

2.16 Off-Balance Sheet Items

Off-Balance Sheet items have been disclosed under contingent liabilities and other commitments as per Bangladesh Bank’s guidelines.

m
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 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

2.17
sheet exposure.

Reporting Period
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These financial statements of the Bank cover one calendar year from 1 January to 31 December.
.
bd
2.18 Compliance of International Accounting Standard (IAS) and International Financial Reporting Standards (IFRS)
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:
ka

SL No. Name of IAS No. of IAS Status

1 Presentation of Financial Stateme 1 Complied *
2 Inventories 2 Complied
3 Statement of Cash Flows 7 Complied
n

4 Accounting Policies, Changes in Accounting Estimates and Errors 8 Complied

5 Events after the Reporting Period 10 Complied
la

6 Income Taxes 12 Complied

7 Property, Plant and Equipment 16 Complied *
8 Employee Benefits 19 Complied
9 Accounting for Government Grants and Disclosure of Government Assistance 20 N/A
10 The Effects of Changes in Foreign Exchanges Rates 21 Complied
11 Borrowing Costs 23 Complied
12 Related Party Disclosures 24 Complied
13 Accounting and Reporting by Retirement Benefit Plans 26 N/A **
14 Separate Financial Statements 27 Complied
15 Investments in Associates 28 N/A
16 Financial Reporting in Hyperinflationery Economics 29 N/A
17 Financial Instruments: Presentation 32 Complied *
18 Earnings Per Share 33 Complied
19 Interim Financial Reporting 34 Complied
20 Impairment of Assets 36 Complied
21 Provisions, Contingent Liabilities and Contingent Assets 37 Complied
22 Intangible Assets 38 Complied
23 Financial Instruments: Recognition and Measurement 39 Complied *
24 Investment Property 40 Complied
25 Agriculture 41 N/A

55
 SL No. Name of IFRS No. of IFRS Status
1 First-time Adoption of International Financial Reporting Standards 1 N/A
2 Share Based Payment 2 N/A
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 Financial Instruments 9
10 Consolidated Financial Statements 10 Complied
11 Joint Arrangements 11 N/A
12 Disclosure of Interests in Other Entities 12 Complied
13 Fair Value Measurement 13 Complied *
14 Regulatory Deferral Accounts 14 N/A
15 Revenue from Contract with Customers 15 Complied *
16 Lease 16 Complied*
17 Insurance Contracts 17 N/A
N/A means Not Applicable
* In order to comply with certain specific rules and regulations of the local Central Bank (Bangladesh Bank) and National Board of
Revenue which are different to IAS/IFRS, some of the requirements specified in these BAS/BFRSs are not applied. Departure from BAS/BFRS
mentioned in the note 2.1.
** This Standard regards a retirement benefit plan as a reporting entity separate from the employers of the participants in the plan.

m
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)
ii)
The Banking Companies Act 1991 (amendment upto 2018)
The Companies Act 1994
co
iii) Rules, regulations and circulars issued by the Bangladesh Bank from time to time
iv) The Securities and Exchange Rules 1987
.
v) The Income Tax Ordinance 1984 and Rules
bd
vi) The Value Added Tax (VAT) 2012 and Rules 2016

2.20 Risk Management

Risk is defined as uncertainties resulting in adverse variation of profitability or in losses, financial or otherwise. The risk management of
ka

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 the best practices as under:
n

2.20.1 Credit Risk

It arises mainly from lending, trade finance and treasury businesses. This can be described as potential loss arising from the failure of a
la

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 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 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 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 -7.7.

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- 7.7.

2.20.2 Operational Risk

56
 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

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
Equity risk arises from movement in market value of equities held. The NRBC Bank duly exposed the risk capital market movement and

m
necessary provison has been made on diminution value in share.
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.
co
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 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
bd
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.
ka

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
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Recovery (DR) for physical security of ICT.

la

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.

2.20.8 Prevention of Fraud and Forgeries

As per the requirement of Bangladesh Bank regular reportings 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 awarness programmes are taken to ensure
that all officers and staff of the Bank are fully aware of various fraud risks in thier work area and prepare them to deal efficiently.
However, no such incident of fraud and forgeries has not been identified in the year 2019.

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 December 2013 24-Jun-14 BBB+ ST-3
Surveillance Rating 2014 22-Feb-15 A- ST-3
Surveillance Rating 2015 30-Mar-16 A ST-3
Surveillance Rating 2016 4-Apr-17 A ST-3
Surveillance Rating 2017 23-Jun-18 A ST-3
Surveillance Rating 2018 30-May-19 A ST-2
57
2.22 Events after Reporting Period
As per IAS -10 “Events after Reporting Period” events after the reporting period are those events, favourable 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:
(a) those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after the reporting period); and
(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
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 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 -J
2.24 Audit Committee of the Board of Directors
i) Particulars of Audit Committee

m
During the Year 2019, the Audit committee of the Board was reconstituted in the 85th meeting of the Board of Directors held on 27.08.2019
in accordance with the BRPD Circular No. 11 dated 27 October 2013 issued by Bangladesh Bank comprising of 04 (Four) members of the
Board:

Sl
no.

1
Name

Mr. Rafikul Islam Mia Arzoo

Status Status with
with Bank Committee

Director Chairman
.
2 years
co
Duration*
Date of First
Appointment/ last
Reappointment
10.12.2017 / 27.08.2019
Educational/ Professional
Qualification

M.Sc. in Electrical Engineering

2 Mr. Mohammed Nazim Director Member 2 years 27.12.2017 / 27.08.2019 B.A
bd
3 Mr. Mohammed Manzurul Islam Director Member 1 year and 4 months 19.08.2018 / 27.08.2019 MA in Education and Journalism
4 Mr. AKM Mostafizur Rahman Director Member 4 months 27.08.2019 MSS in Economics
* • Duration means hold the position as on 31.12.2019 from first appointment
The Company Secretary acts as the Secretary of Audit Committee of Board of Directors of the Bank.
ka

ii) Meeting held with Audit Committee

Sl. Particulars Date of Meeting
1 25th Meeting of Audit Committee 21-Jan-19
2 26th Meeting of Audit Committee 28-Mar-19
n

3 27th Meeting of Audit Committee 27-May-19

4 28th Meeting of Audit Committee 24-Sep-19
la

5 29th Meeting of Audit Committee 29-Oct-19

The following issues were reviewed and discussed:
a. Top 20 classified accounts based on the position of specified dates
b. Position of classified/defaulted loans and advances based on specified dates
c. Discussion on manpower requirement of ICCD, NRBC Bank Limited, Head Office
d. Risk Based Audit Plan – 2019 to perform inspection in the Bank
e. Summary of Comprehensive Inspection Report and Compliance of the branches and the Head Office
f. Review and Recommendation of Audited Financial Statement (AFS) for the year ended on 31 December 2018
g. Review and recommendation of un-audited Financial Statements for the 1st Quarter, 2nd Quarter & 3rd Quarter of 2019
h. Investigation / Special Inspection / Audit Report on several defaulter borrowers of the Bank
i. Annual Health Report of NRB Commercial Bank Limited for the year ended 2018
j. Annual Health Report of NRB Commercial Bank Limited for the year ended 2018
k. To monitor the post disbursement activities and fund usage of the loan customers henceforth

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, Review & Monitors followings
i. Risk assessment done on the basis of material judgment and recommended to minimize risk and manage risk after implementing
control parameter.
ii. The control mechanism reviewing and recommending improving the system.
iii. Advised to vigilant to ensure that the Banking rules and regulations are meticulously complied by all branches/divisions/departments

58
 iv. The Management would exercise 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 recommendations on
internal control system, compliance of rules and regulations and establishment of good governance within the organization
2.25 Approval of financial statements
These financial statements were reviewed by the Audit Committee of the Board of NRBC Bank Limited in its 31th meeting held on 25 March
2020 and was subsequently approved by the Board in its 96th Board Meeting held on 04.05.2020
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 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.

At Dec 31, 2019 At Dec 31, 2018

Taka Taka
3 Cash in Hand:
Cash In Hand (Including Foreign Currency) (Note: 3.1) 1,797,747,991 1,175,893,435
Balance with Bangladesh Bank and its agent bank(s) (Note: 3.2) 4,037,845,366 2,911,852,530
5,835,593,357 4,087,745,964

m
3a Consolidated Cash in Hand:
NRBC Bank Limited 5,835,593,357 4,087,745,964
NRBC Bank Securities Limited 44,807,964 30,069
5,880,401,321 4,087,776,033
3.1 Cash in Hand (Including Foreign Currency)
In local currency
In foreign currency
co (Note: 3.1.1) 1,767,543,417
30,204,574
1,797,747,991
1,149,785,070
26,108,364
1,175,893,435
3.1.1 In local currency
.
Cash in Hand (Cash in safe) 1,720,408,917 1,097,237,070
bd
Cash at ATM and Branch Agent Point 47,134,500 52,548,000
1,767,543,417 1,149,785,070
3.1a Consolidated Cash In Hand (Including Foreign Currency)
NRBC Bank Limited 1,797,747,991 1,175,893,435
NRBC Bank Securities Limited 44,807,964 30,069
ka

1,842,555,955 1,175,923,504
3.2 Balance with Bangladesh Bank and its agent bank(s)
In local currencies (LCY) (Note: 3.2.1) 3,873,522,100 2,870,864,674
In foreign currencies (FCY) (Note: 3.2.2) 78,093,887 15,597,458
n

3,951,615,987 2,886,462,132
Sonali Bank Limited 86,229,379 25,390,398
(as an agent bank of Bangladesh Bank) - local currency
la

4,037,845,366 2,911,852,530
3.2a Balance with Bangladesh Bank and its agent bank(s)
NRBC Bank Limited 4,037,845,366 2,911,852,530
NRBC Bank Securities Limited - -
4,037,845,366 2,911,852,530
3.2.1 Balance with Bangladesh Bank and its agent bank(s)-LCY
Bangladesh Bank, Dhaka Office 3,862,713,766 2,865,788,851
Bangladesh Bank, Chittagong Office 477,963 2,861,193
Bangladesh Bank, Barisal Office 74,435 1,081,081
Bangladesh Bank, Sylhet Office 368,014 581,160
Bangladesh Bank, Rangpur Office 977,177 40,125
Bangladesh Bank, Khulna Office 731,395 55,676
Bangladesh Bank, Rajshahi Office 7,774,478 456,589
Bangladesh Bank, Bogra Office 404,871 0
3,873,522,100 2,870,864,674
3.2.2 Balance with Bangladesh Bank -FCY
FC Clearning in US Dollar 77,895,511 13,802,800
FC Clearning in EURO 198,377 1,794,658
78,093,887 15,597,458
Details of Balance with BB (FCY Wise) Account is given with conversion in Annxure-A

59
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka
3.2.3 Maturity grouping of balance with other banks
Repayable -on demand 78,093,887 15,597,458
– up to 3 months - -
– over 3 months but below 1 year - -
– over 1 year but below 5 years - -
– over 5 years - -
78,093,887 15,597,458
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 (CRR) is calculated on the Bank’s average total demand and time liabilities (ATDTL) and maintained
accordingly with Bangladesh Bank in current account while Statutory Liquidity Ratio (SLR) is 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 2019 is based on weekly average balance of October 2019):

m
i. Daily Position as on the reporting date:
Average total demand and time liabilities (ATDTL) of the Three Months 2019 (excluding inter-bank deposit) for basis of determining daily Cash
. co
Reserve Requirement (Daily CRR is basis of every two months back of average time and demand liabilities):

Basis months for CRR Aug-19 Sep-19 Oct-19

Average time and demand liabilities (excluding inter-bank deposit) 61,543,731,000 63,389,972,000 67,755,254,000
bd
Required months for CRR Oct-19 Nov-19 Dec-19

Required Reserve (5% on daily basis of Average Time and Demand Liabilities) 3,077,186,550 3,169,498,600 3,387,762,700

Average Actual reserve maintained with Bangladesh Bank 3,424,647,311 3,529,775,138 3,773,262,005
ka

Surplus (Maintained over requirement) 347,460,761 360,276,538 385,499,305

ii. Bi-weekly cumulative Position
n

Average total demand and time liabilities (ATDTL) of the Three Months of 2019 (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 demand liabilities):
la

Basis months for CRR Aug-19 Sep-19 Oct-19

Average time and demand liabilities (excluding inter-bank deposit) 61,543,731,000 63,389,972,000 67,755,254,000

Required months for CRR Oct-19 Nov-19 Dec-19

Required Reserve (5.5% on bi-weekly basis of Average Time and Demand Liabilities) 3,384,905,205 3,486,448,460 3,726,538,970

Average actual reserve maintained 3,424,647,311 3,529,775,138 3,773,262,005

Surplus (Maintained over requirement) 39,742,106 43,326,678 46,723,035

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:
Basis months for SLR Aug-19 Sep-19 Oct-19
Average time and demand liabilities (excluding inter-bank deposit) 61,543,731,000 63,389,972,000 67,755,254,000
Required months for SLR Oct-19 Nov-19 Dec-19
Required reserve of SLR (13% on basis of Average Time & Demand Liabilities) 8,000,685,030 8,240,696,360 8,808,183,020
Ave. Actual SLR maintained (details in the note C) 14,004,599,836 16,013,963,066 16,284,949,425
Surplus / (dificit) 6,003,914,806 7,773,266,706 7,476,766,405

60
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka

C. Components of Statutory Liquidity Ratio (SLR) Oct-18 Nov-18 Dec-18

Ave. Cash in hand including Foreign Currency 1,419,269,052 1,378,003,661 1,490,493,378
Ave. Excess Reserve of Bi-weekly @5.5% under CRR Bal with Bangladesh Bank 60,816,800 61,055,654 67,343,769
Ave. Unencumbered approved securities (HTM) 7,986,363,763 8,787,280,697 9,295,443,313
Ave. Unencumbered approved securities (HFT) 4,536,647,485 5,786,137,308 5,430,120,201
Ave. Other Eligible Security i.e. Prize Bond 1,502,735 1,485,747 1,548,765
14,004,599,836 16,013,963,066 16,284,949,425

BRPD Circular No.-02 dated 25/02/2019 and BRPD Circular Letter No.-09 dated 27/05/2019 on Policy for Offshore Banking Operation of the
Banks in Bangladesh is not applicable for Bank. Hence refer to DOS Circular Letter No.26 dated 19/08/2019 has no obligation to maintain
CRR and SLR.

4 Balance with other banks and financial institutions

In Bangladesh (Note: 4.1) 1,888,364,501 2,380,231,257
Outside Bangladesh (Note: 4.2) 146,199,314 144,453,613
2,034,563,815 2,524,684,870
4a Consolidated Balance with other banks and financial institutions
In Bangladesh (Note: 4.1a) 1,894,223,425 2,424,367,751
Outside Bangladesh (Note: 4.2a) 146,199,314 144,453,613

m
2,040,422,739 2,568,821,364
4.1 In Bangladesh
Current Deposits:
Bank Asia Ltd, Ruhitpur Br.
Standard Bank Ltd, Principal Br.
NCC Bank Ltd, Bhaban Br.
co 830
467
3,929,507
325
3,772
794,397
Sonali Bank Ltd, Rangpur Corporate Br. 10,041,547 5,020,485
.
Sonali Bank Ltd, Gopalgonj Br. 11,853,697 2,007,128.00
bd
Sonali Bank Ltd, Feni Br. 8,772,433 6,831,996
34,598,481 14,658,103
Special Notice Deposits
Mercantile Bank Ltd, Main Br. 27,655,797 28,295,095
ka

Mercantile Bank Ltd., Sylhet Br. 4,150 5,999

Janata Bank Ltd, Local Office 11,822,274 5,100,000
Mercantile Bank Ltd., Rajshahi Br. 914 2,294
Southeast Bank Ltd., Principal Br. 23,921,912 16,344,178
n

NCC Bank Ltd., Motihjeel Br. 32,073,074 26,533,211

Eastern Bank Ltd., Principal Br. 35,873,143 1,020,973
la

Jamuna Bank Ltd., FEX Br. 18,775,497 49,002,899

Agrani Bank Ltd., Principal Br. 107,902,617 40,915,107
Agrani Bank Ltd., Sonargaon Br. 12,331,833 32,350,685
Khulna Corp. Branch, Sonali Bank Ltd 19,284 32,253
Sonali bank Ltd.Tangail Br. 1,520 2,820
Sonali bank Ltd. Narsingdi Br. 1,331,508 3,614
Sonali Bank Ltd., Baitul Mokarram Branch 18,186,242 54,007,623
Sonali Bank Ltd, Dilkusha Corporate Branch 40,308,024 -
Trust Bank Ltd, Dilkhusha Corp Br (Q-cash Settlement A/c) 3,360,157 3,828,861
333,567,947 257,445,611
Fixed Deposits Receipt (FDRs) and Account with MFS Company
FDR placement to NBFIs ** 1,481,475,523 2,107,475,523
bKash Limited (Money Transfer A/c) 1,210,470 -
1,482,685,992 2,107,475,523
** Details of FDRs with NFBI in Annx-B
Balance with Brokerage Houses Trading A/C.
MBL Securities Limited 34,458 34,458
IIDFC Securities Limited 10,788 10,788
NRBC Bank Securities Limited 37,466,834 606,774
37,512,080 652,020
1,888,364,501 2,380,231,257

61
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka
4.1a Consolidated In Bangladesh
NRBC Bank Limited 1,888,364,501 2,380,231,257
NRBC Bank Securities Limited 105,079,356 82,939,059
1,993,443,856 2,463,170,316
Less: Inter company transaction 99,220,431 38,802,565
1,894,223,425 2,424,367,751
4.2 Outside Bangladesh
Current Deposits:
Habib American Bank NY, USD 56,607,996 73,429,090
Mashreq Bank PSC NY, USD 64,393,142 46,858,127
AB Bank Ltd Mumbai, Acu Dollar 1,776,027 1,740,558
Mashreq Bank PSC London GBP 10,594 846,882
United Bank of India, Kolkata, Acu Dollar 2,013,396 5,059,324
United Bank of India, Kolkata, Acu Euro 91,898
Mashreq Bank PSC London EURO - 2,825,031
Mashreq Bank Mumbai Acu Dollar 377,444 85,746
National Bank Of Pakistan, Tokyo, Jpy 2,991,441 4,392,511
Kookmin Bank, Seoul, Korea 1,973,517 1,584,041
Habib Metro Bank Limited, Karachi Acu Dollar 5,320,789 1,800,598
Axis Bank Limited, India 10,391,581 5,831,704

m
Banca UBAE S.P.A., Italy 131,236 -
Kookmin Bank, Korea Republic 120,253 -
146,199,314 144,453,613
Details of Nostro Account with conversion in Annxure-C
4.2.1 Maturity grouping of balance with other banks
Repayable -on demand
– up to 3 months
co 146,199,314
-
144,453,613
-
– over 3 months but below 1 year
.
- -
– over 1 year but below 5 years - -
bd
– over 5 years - -
146,199,314 144,453,613
4.2a Consolidated Outside Bangladesh (Nostro Accounts)
NRBC Bank Limited 146,199,314 144,453,613
ka

NRBC Bank Securities Limited - -

146,199,314 144,453,613
Less: Inter company transaction - -
146,199,314 144,453,613
n

4.3 Account-wise/grouping of balance with other banks and financial institutions:

Current Deposits 218,309,875 159,763,737
la

Saving Deposit - -
Special Notice Deposits 333,567,947 257,445,611
Fixed Deposits 1,482,685,992 2,107,475,523
2,034,563,815 2,524,684,870
4.4 Maturity grouping of balance with other banks
Repayable -on demand - 185,508,298
– up to 3 months 1,495,765,000 1,384,076,044
– over 3 months but below 1 year 538,798,815 955,100,529
– over 1 year but below 5 years - -
– over 5 years - -
2,034,563,815 2,524,684,870
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 856,700,000 446,500,000
856,700,000 1,296,500,000
5.1 Maturity grouping of balance with other banks
Repayable -on demand - 870,000,000
– up to 3 months 856,700,000.00 426,500,000
– over 3 months but below 1 year -
– over 1 year but below 5 years -
– over 5 years -
856,700,000.00 1,296,500,000

62
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka
5a Consolidated money at call and on short notice
NRBC Bank Limited 856,700,000 1,296,500,000
NRBC Bank Securities Limited - -
856,700,000 1,296,500,000
6 Investments
Types of Investment
Treasury Bills 2,340,132,971 210,803,562
Treasury Bonds 10,373,845,838 5,939,497,099
Prize Bond 1,452,100 960,300
Other Investments 2,582,734,186 1,790,288,533
15,298,165,096 7,941,549,494
Nature wise:
Held for Trading 3,469,902,880 798,898,750
Held to Maturity 9,244,075,930 5,351,401,910
Others 2,584,186,286 1,791,248,833
15,298,165,096 7,941,549,494
Claim wise:
Government securities (Note: 6.1) 12,715,430,910 6,151,260,960
Other investments (Note: 6.2) 2,582,734,186 1,790,288,533
15,298,165,096 7,941,549,494

m
6a Consolidated investments
NRBC Bank Limited 15,298,165,096 7,941,549,494
NRBC Bank Securities Limited 327,496,997 335,197,607
15,625,662,093 8,276,747,100

6.1
Less: Inter company transaction

Government securities
Treasury bills
. co (Note: 6.1.1)
-
15,625,662,093

12,713,978,810
-
8,276,747,100

6,150,300,660
Prize Bond 1,452,100 960,300
bd
12,715,430,910 6,151,260,960
6.1.1 Treasury bills/Bonds:
a.Unencumbered
i. Held for Trading
91 Days Treasury Bills 339,341,772 -
ka

182 Days Treasury Bills 1,223,061,750 -

364 Days Treasury Bills 777,729,449 -
2 Year Treasury Bonds 348,576,550 -
5 Year Treasury Bonds 521,453,200 467,011,350
n

10 Year Treasury Bonds 202,619,687 331,887,400

15 Year Treasury Bonds 48,325,312 -
la

20 Year Treasury Bonds 8,795,160 -

3,469,902,880 798,898,750
ii. Held to Maturity
91 Days Treasury Bills - -
182 Days Treasury Bills - 210,803,562
364 Days Treasury Bills -
2 Year T-Bonds 107,594,464
5 Year T-Bonds 1,965,688,092 1,259,592,793
10 Year T-Bonds 3,028,905,248 1,837,725,868
15 Year T-Bonds 3,029,719,958 1,452,252,441
20 Year T-Bonds 1,112,168,167 591,027,248
9,244,075,930 5,351,401,910
Total (i +ii) 12,713,978,810 6,150,300,660
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.
6.1a Consolidated Government securities
NRBC Bank Limited 12,715,430,910 6,151,260,960
NRBC Bank Securities Limited - -
12,715,430,910 6,151,260,960
Less: Inter company transaction - -
12,715,430,910 6,151,260,960

63
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka
6.2 Other investments
a. Quoted shares & MFs
Investment in Listed Company Share Through NRBC Bank Securities Limited 739,256,546 728,403,906
Mutual Fund (MFs) Through NRBC Bank Securities Limited 20,000,000 20,000,000
759,256,546 748,403,906
b. Unquoted shares
Investment in IPO Subscription - 104,660
Investment in SWIFT Share (6 no. of Share) of SWIFT SCRL, Belgium 2,779,967 2,779,967
2,779,967 2,884,627
c. Investment in Preference Share:
Preference Share- Regent Energy and Power Ltd. 30,697,674 40,000,000
30,697,674 40,000,000
d. Investment in Bond:
BSRM Convertible Bond - 99,000,000
Mercantile Bank Subordinated Bond 180,000,000 270,000,000
Trust Bank Subordinated Bond 60,000,000 90,000,000
One Bank Subordinated Bond -III 500,000,000 -
UCBL Subordinated Bond -Iv 500,000,000 -
IPDC Finance Subordinate bond 150,000,000 -

m
AB Bank Subordinated Bond 40,000,000 60,000,000
UCBL Subordinated Bond 60,000,000 80,000,000
MTB Subordinated Bond 120,000,000 160,000,000
2nd AB Bank Subordinated Bond
The City Bank Subordinated Bond

Total (a+b+c+d)
. co 180,000,000
-
1,790,000,000
2,582,734,186
240,000,000
-
999,000,000
1,790,288,533
Details in the Annexure-E
bd

6.2a Consolidated other investments

NRBC Bank Limited 2,582,734,186 1,790,288,533
NRBC Bank Securities Limited 327,496,997 335,197,607
ka

2,910,231,183 2,125,486,140
Less: Inter company transaction - -
2,910,231,183 2,125,486,140
6.3 Maturity grouping of Investment
n

Redeemable-on demand - -
– up to 3 months 588,855,522 210,803,562
la

– over 3 months but below 1 year 2,813,113,475 1,701,565,014

– over 1 year but below 5 years 5,685,763,086 2,790,908,458
– over 5 years 6,210,433,012 3,238,272,460
15,298,165,096 7,941,549,494
7.0 Loans and advances
Loans, cash credits, overdrafts, etc 59,949,159,299 46,618,595,841
Bills purchased and discounted 2,065,862,555 1,499,187,423
62,015,021,854 48,117,783,264
7a Consolidated Loans and advances
NRBC Bank Limited 62,015,021,854 48,117,783,264
NRBC Bank Securities Limited 138,414,177 70,653,291
62,153,436,031 48,188,436,555
Less: Inter company transaction 93,872,646 36,556,246
62,059,563,385 48,151,880,309

64
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka

7.1 Product wise Loans and Advances:

i) Loans, cash credits, overdrafts, etc.
Inside Bangladesh
Overdraft 9,651,506,886 8,092,331,630
Cash Credit 9,395,865,175 9,457,810,629
Time loan 8,628,526,739 5,375,350,895
Term loan 10,977,776,017 6,476,351,833
Payment Against Document 179,702,223 137,561,646
Loans against Trust Receipt 3,019,096,336 2,417,422,899
Packing Credit 800,255,579 525,633,098
EDF Loan 249,704,135 279,673,358
SME Credit 7,273,519,011 3,941,995,282
Lease Finance 606,176,395 521,905,312
Hire Purchase 2,062,764,421 1,541,523,331
Consumer Loan 2,501,162,588 729,547,731
Staff Loan 532,232,616 485,725,947
Credit card 400,848,907 325,704,034
Other Loans and Advances 3,670,022,270 6,310,058,215
59,949,159,299 46,618,595,841

m
Outside Bangladesh - -

ii) Bills purchased and discounted

Payable Inside Bangladesh
Inland bills purchased

Payable Outside Bangladesh

. co 1,241,359,981
1,241,359,981
919,727,883
919,727,883

Foreign bills purchased and discounted 824,502,574 579,459,541

bd
824,502,574 579,459,541
2,065,862,555 1,499,187,423
7.2 Loans, cash credits, overdrafts, etc. (Inside Bangladesh)
Loans 40,901,787,238 27,569,266,158
Overdrafts 9,651,506,886 9,591,519,053
ka

Cash Credit 9,395,865,175 9,457,810,629

59,949,159,299 46,618,595,841
7.2a Consolidated Loans, cash credits, overdrafts, etc. (Inside Bangladesh)
NRBC Bank Limited 59,949,159,299 46,618,595,841
n

NRBC Bank Securities Limited 138,414,177 70,653,291

60,087,573,476 46,689,249,132
la

Less: Inter company transaction 93,872,646 36,556,246

59,993,700,830 46,652,692,885
7.3 Broad category-wise breakup
In Bangladesh
Loans 40,901,787,238 27,569,266,158
Overdrafts 9,651,506,886 9,591,519,053
Cash Credit 9,395,865,175 9,457,810,629
Bills purchased and discounted 1,241,359,981 919,727,883
61,190,519,280 47,538,323,724
Outside Bangladesh
Bills purchased and discounted 824,502,574 579,459,541
824,502,574 579,459,541
62,015,021,854 48,117,783,264
7.3a Consolidated Loans, cash credits, overdrafts, Bills purchased and discounted, etc.
NRBC Bank Limited 62,015,021,854 48,117,783,264
NRBC Bank Securities Limited 138,414,177 70,653,291
62,153,436,031 48,188,436,555
Less: Inter company transaction 93,872,646 36,556,246
62,059,563,385 48,151,880,309

65
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka

7.4 Residual maturity grouping of loans and advances including bills purchased and discounted
Payable on demand 13,939,119,099 7,053,645,900
Not more than 3 months 12,156,741,698 13,652,123,762
More than 3 months but not more than 1 year 24,733,979,322 15,368,960,817
More than 1 year but not more than 5 years 10,940,611,692 7,547,360,430
More than 5 years 244,570,043 4,495,692,355
62,015,021,854 48,117,783,264
7.5 Net loans and advances/investments
Gross loans and advances/investments 62,015,021,854 48,117,783,264
Less: Interest suspense (Note 13.10) 471,573,178.82 156,786,910.48
Provision for loans and advances/investments (Note 13.2) 846,915,130.00 723,736,676.27
1,318,488,308.82 880,523,586.75
60,696,533,545.31 47,237,259,677.39
7.6 Sectorwise Loans and Advances excluding bill purchased and discounted:
Govt. Sector - -
Public Sector - -
Co-operative sector - -
Private Sector 62,015,021,854 48,117,783,264
62,015,021,854 48,117,783,264
7.7 Loans and Advances on the basis of significant concentration including Bills Purchased and Discounted.

m
a) Loans and advances given in favor of sister concern of the Directors ; - -
b) Loans and advances given to Chief Executive and other senior executives & staff of the Banks:
Managing Director & CEO - -

c)
other executives and staffs
co
Loans and advances allowed to customer exceeding 10% of Bank’s Total Equity for the year 2018:
Total capital of the Bank (Lac Taka)
532,232,616
532,232,616

89,072.57
148,271,877
148,271,877

73,525.13
No. of Customer 49 37
.
Amount of Outstanding Facilities: Amount in lac taka
bd
Funded Facilities 224,826 175,305
Non-Funded Facilities 113,587 81,633
Classified loan thereon Nil Nil
Measures taken for recovery Nil Nil
ka

Figure in Lac
Facilities approved by Bank Balance/Business as on 31.12.2019
SL Name of Client
Funded Non-Funded Funded Non-Funded
1 IFAD Group 5,850.00 1,000.00 2,157.45 -
n

2 AG Agro * 6500+((5833)) 10,000.00 11,416.77 5,134.07

3 Anwar Group 8,073.88 0.00 8,210.31 -
4 Navana Group 7,940.62 7,000.00 7,816.63 3,781.58
la

5 Mir Akhter Hossain Limited 8,000.00 7,728.07 6,348.85 6,101.87

6 Abul Khair Limited* ((7000.00)) 16,500.00 5,993.97 659.04
7 Habib Steels Limited 8,732.85 5,000.00 6,043.78 2,472.77
8 Jahangir And Others Limited* 250+((7000)) 8,000.00 9,639.48 483.65
9 Western Engineering (Pvt.) Limited & its associates 5,000.00 11,410.56 4,288.85 903.51
10 Nassa Group 5,658.46 4,000.00 4,969.67 2,588.44
11 Labib Group 9,333.17 9,888.00 5,406.26 3,913.39
12 Goldstar Group 3,041.71 10,150.00 193.48 1,387.95
13 M/s. Md. Rasheduzzaman 5,500.00 11,500.00 516.23 1,011.90
14 Manobik Shajya sangstha 0.00 9,975.00 - 3,780.00
15 M M Ship Breaking Industries 5,450.00 798.41 1,839.14 798.41
16 Jamuna Industrial Agro Group 10,463.00 7,500.00 10,703.95 3,747.29
17 Nitol Motors Ltd. 5,000.00 5,000.00 4,617.61 -
18 Stylish Garments Limited* 9153.96+((500)) 5,000.00 9,645.40 2,690.60
19 Gram Unnayan Karma (GUK) 500.00 11,250.00 524.04 4,935.00
20 Blue Planet Knitwear Limited 9,092.00 16,500.00 4,627.94 8,013.78
21 Computer Network System 5,000.00 5,000.00 - 2,050.75
22 Ahmed Enterprise 700.00 8,755.00 0.10 975.13
23 AA Synthetic Fibres Ltd. 6,000.00 5,000.00 5,343.46 107.36
24 Aftab Automobiles Ltd* 3185.15+((1030)) 1,100.00 4,567.24 -
25 Silver Apperals Ltd. 7,293.20 12,369.12 6,166.97 9,571.34

66
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka

Figure in Lac
Facilities approved by Bank Balance/Business as on 31.12.2019
SL Name of Client
Funded Non-Funded Funded Non-Funded
26 Mahade Fashion Pvt. Ltd 3,926.85 6,430.11 2,558.11 5,181.92
27 NORTHERN HATCHERIES 7,968.80 0.00 9,331.84 -
28 Samira Saima Textile Mills 10,408.62 5,000.00 7,229.10 -
29 M/S Hasan & Brothers* 1000+((4000)) 0.00 4,945.35 -
30 Aleya Feeds Ltd & its Associates* 4837.84+((3200)) 3,700.00 8,129.91 110.02
31 Taratex Fashion Limited 3,025.00 10,579.87 2,822.92 9,380.59
32 Blessing Knitwear Limited* 4971.01+((705)) 3,223.95 6,020.30 2,232.40
33 Sanji Group 3,600.00 2,000.00 1,184.07 158.01
34 LA-Muni Apparels Ltd 2,840.00 4,893.20 2,623.43 169.43
35 ARISTOCRATS PROPERTIES LTD. AND ASSOCIATES 5,979.96 11,000.00 2,820.22 5,432.09
36 Beq Group 3,500.00 8,975.50 2,487.92 4,981.07
37 SB Group* 9450+((4000)) 7,500.00 10,165.11 5,887.45
38 Al-Falah Steel & Re-rolling Mills Ltd.* 4500+((3000)) 5,336.61 7,818.83 96.41
39 Star Particle Borad Mills Limited* 6914+((1000.00)) 12,000.00 7,854.76 462.04
40 POPULAR DIAGNOSTIC CENTRE LTD. 5,900.00 2,000.00 3,696.52 -
41 MAX Group 9,900.00 6,000.00 10,052.08 210.48
42 BSRM 16,500.00 0.00 4,880.52 -
43 SOUTH BENGAL INTERNATIONAL TRADING 1,118.19 500.00 299.84 251.09
44 THREE ANGLE MARINE LTD. 3,080.07 6,198.38 2,395.14 4,791.49

m
45 Energypac Power Generation Ltd 2,000.00 4,500.00 1,388.10 502.10
46 Pragoti Industries Ltd 23,000.00 0.00 - 127.36
47 S K S Foundation 0.00 8,360.00 - 4,935.00
48
49
Total
Center for Development Innovation and Practiced (CDIP) 0.00
Chisty Group

**Note: Inner limit exist in (*) mark customer’s.

. 6,503.90
232,589.61
co 7,455.00
125.00
306,201.78
-
5,084.43
224,826.09
3,570.00

113,586.78
-
bd
d) Industry wise loans including Bills purchased & discounted:
SL Industries Taka Taka
1 Agri cultural Industry 740,530,956 963,744,485
2 Textile 2,607,327,229 2,471,426,752
3 RMG 6,710,570,005 5,370,354,011
ka

4 NBFI 911,196,404 598,762,002

5 Food 211,505,367 183,754,050
6 Bevarage 288,749,693 154,964,250
7 Pharmaceutical 296,033,440 242,303,831
n

8 Chemical 117,081,118 112,513,063

9 Electrical 276,288,923 91,111,124
la

10 Construction 3,858,121,586 3,079,563,281

11 House Building Residential 1,131,306,251 871,220,056
12 Leather 58,295,881 66,276,920
13 Service Industry 3,706,342,195 1,189,458,782
14 Transport 248,019,663 240,764,426
15 Basic Metal 125,177 7,145,324
16 Capital Market 93,872,646 12,156,246
17 Car loan 5,248,950 5,534,768
18 Furniture - 4,291,540
19 Insurance 105,304,054 3,759,272
20 Consumer Finance 2,501,162,588 1,789,029,598
21 Printing 770,228,650 657,640,712
22 Ship Breaking 430,041,638 590,184,428
23 SME 13,314,469,566 9,291,251,424
24 Staff Loan 532,342,540 485,725,947
25 Steel 2,387,252,650 2,392,652,881
26 Trade Industry 11,162,923,135 9,265,230,396
27 Card 400,848,907 325,704,034
28 Other Manufacturing Industry 8,577,067,706 7,090,034,730
29 Others 572,764,936 561,224,931
62,015,021,854 48,117,783,264

67
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka

7.8 Geographical location-wise Loans and Advances

Urban Branch
Dhaka 39,632,751,798 29,673,156,840
Chittagong 7,300,639,406 6,869,018,810
Rajshahi 3,070,377,790 2,619,347,022
Sylhet 1,206,310,737 1,042,490,789
Barisal 515,995,180 443,556,605
Rangpur 248,336,656 268,644,681
Khulna 726,768,835 152,955,798
Mymensingh 372,989,261 91,514,068
Sub-total 53,074,169,664 41,160,684,612
Rural Branch
Dhaka 5,719,561,406 5,136,647,698
Chittagong 1,812,461,131 1,169,881,358
Rajshahi 235,155,065.52 -
Sylhet 212,379,808 106,452,921
Barisal 365,432,079 206,822,736
Rangpur 215,386,217 219,862,054
Khulna 147,784,762 117,431,885
Mymensingh 232,691,721.98 -

m
Sub-total 8,940,852,190 6,957,098,652
Total 62,015,021,854 48,117,783,264

7.9 Classification of Loan & Advances

Unclassified
Standard Including Staff Loan
Special Mention Account
co 57,596,562,895
2,433,368,109
44,612,212,115
2,091,171,149
Sub-Total (a) 60,029,931,005 46,703,383,264
.
Classified
bd
Substandard Loan 502,564,441 130,276,607
Doubtful 135,933,206 235,240,636
Bad/loss 1,346,593,202 1,048,882,758
Sub-Total (b) 1,985,090,849 1,414,400,000
ka

Total (a+b) 62,015,021,854 48,117,783,264

7.10 Particulars of required provision for loans and advances (for Funded facility):
For Unclassified Loans Base for Provision Rate (%)
n

Standard Including Staff Loan 57,596,562,895 Various (*) 417,704,065 389,808,475

Special Mention account 2,433,368,109 Various (*) 245,583,904 19,916,276
Sub-Total (a) 663,287,969 409,724,751
la

(*) General Provision is Kept @ 2% on Credit Card Loan, 1% Loan for Professional, 2% on housing loan, 5% on Consummer Financing and
0.25% on small and medium enterprise Financing and 1% on rest unclassified Loans and advances.

For Classified Loans Base for Provision Rate (%)

Substandard Loan (SS) (**) 335,643,689 20% 67,128,738 27,158,012
Doubtful (DF) (**) 51,059,441 50% 25,529,720 66,279,479
Bad/loss (BL) 754,256,672 100% 754,256,672 630,299,185
Sub-Total (b) 846,915,130 723,736,676
Required Provision for Loan and advance (c=a+b) 1,510,203,099 1,133,461,428
Total Provision maintained (Note:13.1 & 13.2) 1,510,203,099 1,133,461,428
Excess/(Shortfall) of provision as of 31 December 2019 - -
(**) Except Short-term agri-credit and micro credit where 5% provision has to be kept on base for provision under SS & DF stage

7.11 Particulars of Loans and Advances:

(i) Loans and advances considered good in respect of which the Bank is fully secured 24,853,063,859 17,323,920,129
(ii) Loans and advances considered good against which, the Bank holds no security other 11,943,633,361 8,295,917,058
than, the debtors’ personal guarantee
(iii) Loans and advances considered as good which is secured owing to personal liability of 530,407,048 267,401,501
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
37,327,104,268 25,887,238,688
68
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka

(v) Loans and advances due by directors or officers of the banking company or any of
them either separately or jointly with any other persons 12,203,827,335 10,700,060,341
(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 12,000,000
(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 as directors, partners or managing agents or in the case
of private companies, as members 1,672,491,000 2,312,600,000
(ix) Money Receivable/Due from different banking companies - -
(x) The amount of classified loan on which interest has not been charged:
a. (Decrease)/ increase of provision (Specific) 123,178,454 262,427,292
b. Amount of loan write off - -
c. Amount realized against loan previously written off - -
d. Provision kept against classified loan as bad/loss account on the date of preparation of
balance sheet; 754,256,672 630,299,185
e. Interest imposed in suspense account 314,786,268 74,751,704
(xi) Movement of write off loan :

m
Opening balance - -
Add: During the period/year - -
Less: Amount realised against loans & advances previously written off - -
Closing Balance - -

7.12 Securities against Loans including Bill purchased and discounted

Collateral of movable/immovable assets
co 40,627,000,000 29,369,909,124
Local Banks & Financial Institutions Guarantee 1,695,100,000 782,166,236
.
Government Guarantee - -
bd
Foreign Bank Guarantee - -
Export Documents 529,500,000 1,384,765,997
Fixed Deposit Receipt 4,312,400,000 1,853,092,818
Personal Guarantee 9,395,400,000 8,295,917,058
Other Securities 5,455,621,854 6,431,932,031
ka

62,015,021,854.00 48,117,783,264
7.13 Direction of Court Order regarding Classified Loan (Details Description)
The amount reported under Standard/SMA category includes certain loan accounts with an aggregate outstanding of Tk 567.57 .million as at
31-12-2019 which has not been reported as classified at year-end due to stay order from the Honorable High Court Division of the Supreme
n

Court of Bangladesh. out of which, as at year-end 2019, an aggregate amount of Tk. 70.60 Million has been kept as specific provision treating
the customer accounts as bad/loss.
la

7.14 Loan and advance realted with Large loan restructuring

No large loan mentioned above being retructured during the period

7.15 Suits filed by the Bank (Branch wise details)

As of the responding Date, the Bank filed lawsuit against recovery of its default loans and advances as under
Principal Branch 180,045,000 141,137,848
Gulshan Branch 208,002,000 192,050,000
Ruhitpur Branch 8,963,000 9,290,000
Mawna Branch - 861,000
Chinishpur Branch 28,121,000 24,829,000
Uttara Branch 150,877,000 133,262,000
Dhanmondi Branch 208,609,000 153,803,000
O R Nizam Road Branch 84,948,000 66,785,000
Banani Branch 75,055,000 75,055,000
Naogaon Branch 5,346,000 4,061,000
Hatirpul Branch 15,502,000 13,930,000
Harirampur Branch 21,629,000 15,197,000
Mirpur Brnach 450,000 450,000
Sylhet Branch 93,485,000 83,973,000
Sylhet Uposhor Branch 9,999,000 8,675,000
Chatkhil Branch 1,373,000 1,353,000
1,092,404,000 924,711,848
69
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka

8.0 Bills purchased and discounted

Receivable in Bangladesh 1,241,359,981 919,727,883
Receivable from outside Bangladesh 824,502,574 579,459,541
2,065,862,555 1,499,187,423
8.1 Maturity grouping of Bills purchased and discounted
Receivable within a period not exceeding 01 month 842,488,309 820,112,036
Receivable within a period exceeding 01 months but less than 03 months 795,530,798 556,720,944
Receivable within a period exceeding 03 months but less than 06 months 421,587,971 118,576,709
Receivable within a period equal to 06 months or exceeding that time 6,255,478 3,777,733
2,065,862,555 1,499,187,423
8a Consolidated Bills purchased and discounted:
NRBC Bank Limited 2,065,862,555 1,499,187,423
NRBC Bank Securities Limited - -
2,065,862,555 1,499,187,423
9 Fixed assets including premises, furniture and fixtures of the Bank
Land, Building and Construction - -
Furniture and fixures 407,898,478 328,694,024
Equipment and Machinery 385,031,016 315,225,583
Computer and Computer Equipment 190,730,101 172,281,965
Intangible Assets/Bangladesh Made Computer Software 164,599,965 157,026,657
Motor Vehicles 46,850,000 46,850,000

m
Professionals and Reference Books 23,370 23,370
Leased Assets: Motor Vehicle 20,330,624 27,106,624
1,215,463,553 1,047,208,223
Less: Accumulated Depreciation/Amortization
co
A schedule of fixed assets for accounting purpose is given in Annexure- G and Tax Purpose Annexure-H.
709,247,252
506,216,302
572,355,069
474,853,154

9a Consolidated Fixed assets including premises, furniture and fixtures

.
At cost:
bd
NRBC Bank Limited 1,215,463,553 1,047,208,223
NRBC Bank Securities Limited 14,024,924 12,016,468
1,229,488,477 1,059,224,691
Accumulated depreciation:
NRBC Bank Limited 709,247,252 572,355,069
ka

NRBC Bank Securities Limited 6,946,159 4,913,054

716,193,411 577,268,122
Net Book Value 513,295,067 481,956,568
n

10 Other assets
i. Income generating-Equity Investment
la

90% equity Shareholding of NRBC Bank Securities Limited 360,000,000 360,000,000

ii. Non-income generating

Advance Security Deposit 4,517,026 3,988,129
Stock of Stationery and printing items [Note -10.3] 12,448,650 10,538,910
Suspense Account [Note -10.4] 121,808,113 96,479,096
Deferred Tax Assets (Note 10.5) 356,817,790 295,810,436
Stamps in Hand 2,879,876 1,994,890
Advance Office Rent 174,629,512 213,505,144
Interest Receivable on Loans and Advances (LDOs) - 7,435,666.87
Interest Receivable on Balance with Banks & FIs 30,981,691 51,675,476
Interest Receivable on Call Loan & Short Notice Loan 826,678 1,102,556
Interest Receivable on Treasury Bonds 260,403,695 141,637,371
Interest Receivable on Coupon Bond 29,719,829 21,925,893
Prepaid Insurance Premium 1,286,054 1,611,165
Prepaid Expense-Others 1,095 1,095
Prepaid for House Furnishing cost & Passage for Travel (LFA) 28,084,699 21,498,945
Advance Income Tax [Note -10.6] 2,175,887,828 1,382,275,162
Membership with Visa Worldwide PLC Ltd. 2,311,500 2,311,500
Dividend Receivable on Share/Preference Share 6,324,250 4,949,895
Inter Branch General Account (IBGA) Debit Balance [Note -10.5] 2,895,338 -
3,211,823,622 2,258,741,328
Total (i+ii) 3,571,823,622 2,618,741,328
70
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka

10.1 Aging of Others Assets

Up to 6 months 808,192,095 598,101,210
Over 6 Months to 1 Year 666,263,724 459,473,058
Over 1 Years to 4 Years 888,861,056 631,418,457
Above 4 Years 1,208,506,748 929,748,604
3,571,823,622 2,618,741,328
10.2 Classification Status of Others Assets
Unclassified 3,571,823,622 2,618,741,328
Doutful - -
Bad/Loss - -
3,571,823,622 2,618,741,328
** No protested bill and legal expenses included in the Other Assets

10a Consolidated Other assets

NRBC Bank Limited 3,571,823,622 2,618,741,328
NRBC Bank Securities Limited 40,675,850 21,644,979
3,612,499,472 2,640,386,306
Less: Inter company transaction 361,284,278 361,202,802
3,251,215,194 2,279,183,504
10.3 Stock of Stationery and printing items
Printing Stationery (Assets) 10,677,620 7,493,468

m
Security Papers/ Stationery (Assets) 876,550 882,942
Security Stationery - CARD 894,480 2,162,500
12,448,650 10,538,910
10.4 Suspense Account
Advance against New Branches
Advance Against Suppliers
Receivable Against pyament for Principal of Govt. Securities ( BSP/PSP/3MB)
. co 49,310,600
9,391,577
20,982,901
14,461,600
12,599,344
41,231,341
Advance against TA/DA 200,000 55,650
bd
Cash Remitted to HO/Feeding Branch 25,950,000 9,734,355
Suspense A/C Bank POS and NPSB TXN Dispute amount - 61,427
Suspense Others 2,907,645 5,744,827
Interest Receivable Against payment for Interest of Govt. Securities ( BSP/PSP/3MB) 11,616,723 9,484,726
Foreign Remmittance Agencies - 1,454,812
ka

Receivable Against expense of Defaulter/CL 1,053,506 1,108,194

Stamp for Utility Bill Collection 395,160 542,820
121,808,113 96,479,096
n

Aging of Suspense Account (2019)

Over 6 Months to Over 1 Years to 4
Head of Account Up to 6 Months Above 4 Years
1 Year (**) Years
la

Advance against New Branches (**) 49,310,600

Advance Against Suppliers 9,391,577
Advance against TA/DA 200,000
Cash Remitted to HO/Feeding Branch 25,950,000
Suspense A/C Bank POS and NPSB TXN Dispute amount
Principal & Intt. Paid for Govt. Securities ( BSP/PSP/3MB) 31,994,624 605,000 -
Suspense Others 2,857,645 50,000.00 -
Foreign Remmittance Agencies -
Receivable Against expense of Defaulter/CL 20,506 98,000.00 935,000.00
Stamp for Utility Bill Collection 395,160

**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.

10.5 Deferred Tax Assets

Opening Balance 295,810,436 189,517,796

Additional provision during the Year 61,007,354 106,292,640

Less: Adjustment/Settlement -
356,817,790 295,810,436
Based on detailed analysis Management is satisfied that there would be adequate taxable profit available in future against such deductible
temporary differences.

71
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka

10.6 Advance Corporate Tax and withhloding Tax at source

Opening Balance 1,382,275,162 865,998,645
Add: Advance Corp. Tax & Withhloding Tax during the year [Tax on interest and vehicle] 793,612,666 540,266,546
Sub-Total 2,175,887,828 1,406,265,191
Less: Settlement during the year* - 23,990,029
Details in the note : 10.6.1 2,175,887,828 1,382,275,162
*Final Tax Settlement for the Financial Year 2013 (Assessment Year 2014-15) after Tribunal Order dated 21.10.2018

10.6.1 Advance Corporate Tax and withhloding Tax at source

Advance Corporate Tax ( Under Section #64 of ITO, 1984) 1,455,649,377 704,616,268
TDS@10% & 15% on Interest Income from FDR and Balace with with Bank & FIs 655,182,495 623,055,129
TDS @ 20% on Cash Dividend received from Quoted Share 11,708,068 7,283,860
Tax deposited @ 5% on commission on L/C 11,588,742 6,105,761
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 56,250 11,250
Advance Tax for Bank’s Pool Vehicles 1,300,000 800,000
2,175,887,828 1,382,275,162
10.7 Inter Branch General Account (IBGA) Balance-Debit Balance No. of Entry

m
Inter Branch General Account Credit Balance 65 2,845,168
Inter Branch General Account Debit Balance 7 5,740,506
2,895,338 -
11

Outside Bangladesh
co
Borrowings from Bangladesh Bank, other Banks, Fiancial Institutions and Agents
In Bangladesh (Note 11.1) 1,290,232,047
-
299,272,717
-
1,290,232,047 299,272,717
.
11.1 In Bangladesh
bd
Bangladesh Bank (Refinance under SPD/SME/WE) * 10,232,047 299,272,137
Bangladesh Bank ( LS/REPO) - -
Bangladesh Bank-FCY ( GBP/EURO/USD) - 580
Borrowings Call and Short Notice from Banks & FIs 1,280,000,000 -
ka

1,290,232,047 299,272,717
* Details of Refinance in the Annexure-F

11.2 Analysis by Security

n

Borrowing with Security - -

Borrowing without Security 1,290,232,047 299,272,137
la

1,290,232,047 299,272,137
11.3 Repayment pattern
Repayable on demand 1,280,000,000 580
Repayable on maturity/terms 10,232,047 299,272,137
1,290,232,047 299,272,717
11a Borrowings from Bangladesh Bank, other Banks, Fiancial Institutions and Agents
NRBC Bank Limited 1,290,232,047 299,272,717
NRBC Bank Securities Limited - -
1,290,232,047 299,272,717
12 Deposits and other accounts
Deposit from Inter Bank (Note-12.1) 2,000,000,000 3,650,000,000
Deposit from Customers (Note-12.2) 69,857,899,976 50,433,280,144
71,857,899,976 54,083,280,144
12a Consolidated Deposits and other accounts
NRBC Bank Limited 71,857,899,976 54,083,280,144
NRBC Bank Securities Limited 121,113,684 41,162,630
71,979,013,660 54,124,442,774
Less: Inter company transaction 99,220,431 38,802,565
71,879,793,228 54,085,640,209

72
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka

12.1 Deposits from Inter Bank

Fixed Deposit:
Agrani Bank Limited 400,000,000 400,000,000
One Bank Limited 500,000,000 -
Sonali Bank Limited 500,000,000 500,000,000
Janata Bank Limited - 800,000,000
Bank Asia Limited 600,000,000 -
Rupali Bank Ltd. - 1,950,000,000
2,000,000,000 3,650,000,000
12.2 Deposits and other accounts
i. Current accounts and other accounts
Current Deposit 4,038,984,453 2,168,573,948
Foreign Currency Deposit 68,313,838 111,390,068
Deposit Under Q-Cash 7,337,524 8,906,018
Sundry Deposit of Retailer Point 19,129 38
Sundry Deposit (Note: 12.2.1) 2,057,926,894 1,108,476,132
6,172,581,839 3,397,346,204
ii. Bills Payable
Pay Order 7,185,410,848 2,510,922,338

m
iii. Savings Bank Deposit 5,238,707,700 3,693,607,998
iv. Term Deposit/Fixed Deposit
Fixed Deposit 11,795,849,738 12,144,206,953
Short Term Deposit
Deposit Under Schemes co 7,306,873,965
32,158,475,886
51,261,199,589
69,857,899,976
6,229,710,080
22,457,486,571
40,831,403,605
50,433,280,144
12.2.1 Sundry Depsoit
.
Margin on Letter of Guarantee 762,855,980 288,107,136
bd
Margin on Letter of Credit 540,155,177 316,506,404
Margin on Bills 120,593,954 90,655,154
Margin on IDBC/ IDBP Collected Bills 11,315,408 0
Margin on Others 164,858,265 55,140,092
ka

Sale Proceeds of Govt. Savings Certificates 52,425,000 55,900,000

Security Deposits 3,389,173 3,228,539
Risk Fund on Loans and Advances 4,724,934 4,610,674
Recognized Provident Fund Balance - 4,985,940.00
n

Employees Welfare Fund 4,448,737 5,968,387

VAT, Excise Duty and Withholding Tax 159,147,596 125,322,082
Value Added Tax - VAT on Utility Bills Collection 25,584,814 21,261,077
la

Sundry Creditors -1,112,935 4,638,353

Proceed from Lottery Sale 700 2,600
Bills/ Fees Collection-Agent Point 29,769 30,621
Sundry Creditors Forex EFTN TXN 1,642,247 160,340
Sundry NPSB Txn_ Dispute A/C 833,081 415,432
Sundry VISA Txn_ Dispute A/C 33,114 47,699
Dividend Payable 21,626,274 21,626,274
Sundry Txn Fees Q-Cash/NPSB/VSA for Settlement 322 0
Sundry Deposit-Agent Point 100,659 95,420
Other Sundry Deposits 185,274,626 109,773,908
2,057,926,894 1,108,476,132
12.3 Maturity Analysis of Interbank Deposit
Repayable on demand - -
Paybale within 1 month 600,000,000 1,500,000,000
Over 1 month but within 3 months 900,000,000 1,650,000,000
Over 3 months but within 6 months 500,000,000 500,000,000
Over 6 months but within 1 year - -
Over 1 year but within 5 years - -
Over 5 years but within 10 years - -
Over 10 years - -
2,000,000,000 3,650,000,000

73
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka

12.4 Maturity Analysis of Other Deposit

Repayable on demand -
Paybale within 1 month 600,000,000 1,500,000,000
Over 1 month but within 3 months 900,000,000 1,650,000,000
Over 3 months but within 6 months 500,000,000 500,000,000
Over 6 months but within 1 year -
Over 1 year but within 5 years -
Over 5 years but within 10 years -
Over 10 years -
2,000,000,000 3,650,000,000
12.5 Demand and Time Deposits
A. Demand Deposits
Current Accounts and Other Accounts 4,038,984,453 2,168,573,948
Savings Deposits (9%) 471,483,693 332,424,720
Sundry Deposit 2,057,926,894 1,108,476,132
Foreign Currency Deposit 68,313,838 111,390,068
Deposit Under Q-Cash 7,337,524 8,906,018
Sundry Deposit of Retailer Point 19,129
Bills Payable 7,185,410,848 2,510,922,338

m
13,829,476,380 6,240,693,223
B. Time Deposits
Savings Deposits (91%) 4,767,224,007 3,361,183,278
Short Notice Deposits
Fixed Deposits
Deposit Under Schemes
co 7,306,873,965
13,795,849,738
32,158,475,886
6,229,710,080
15,794,206,953
22,457,486,571
58,028,423,596 47,842,586,883
.
Total Demand and Time Deposits 71,857,899,976 54,083,280,106
bd

13 Other Liabilities
Accumulated Provision against unclassified Loans and Advances (Note 13.1) 663,287,969 409,724,751
Accumulated Provision against Classified Loans and Advances (Note 13.2) 846,915,130 723,736,676
ka

Accumulated Provision against Off Balance Sheet (OBS) items (Note 13.5) 220,160,069 160,459,933
Provision for diminution of Share of listed Company and Securities (Note 13.6) 140,596,522 32,401,536
Paybale to Recognized NRBC Bank Employees’ Gratuity Fund (Note 13.7) - -
Accrued Interest Payable (Note 13.8) 2,687,390,186 1,489,314,899
n

Coupon Interest Payable 31,689,354 -

Current Income Tax Payable (Note 13.9) 3,102,980,126 2,147,730,763
la

Interest Suspense of classified Loans & Adavnces (Note 13.10) 471,573,179 156,786,910
Payable/Provision for Incentive Bonus-Employees 61,364,396 69,813,187
Provision for Office Rent 2,755,400 1,237,069
Provision for Telephone Bill-Office 54,042 39,614
Provision for Telephone Bill-Residence - 14
Provision for Power and Electricity Expense 614,302 726,451
Provision for Printing Stationary 20,538 20,538
Provision for Other Expenditure 22,100 -
Provision for Wasa, Gas and Sewerage Bill 26,485 22,950
Provision for Postage 20 1,854
Payable/Provision for Ex-gratia-Security and Cleaning support Staff 10,114,212 2,600,000
FC Held Against BTB Bills, EDF Loan and Others 539,082,727 363,283,743
Audit Fees payable 632,500 402,500
Accrued Revenue for Disbursement-Cards Business 737,328 1,588,392
Inter Branch General Account (IBGA) Credit Balance (Note 13.11) - 2,387,088
8,780,016,585 5,631,698,497
13.01 Provision against Unclassified of loans, advances and lease/investments
Standard including Staff loan 417,704,065 389,808,475
Special Mentioned Account (SMA) 245,583,904 19,916,276
663,287,969 409,724,751

74
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka

i. General Provision for Unclassified Loans

Provision held at the beginning of the period 389,808,475 362,053,192
Add : Provision During the period 27,895,590 27,755,283
Less: Transferred to Provision for Special Mentioned Account (SMA)
Less: Transferred to Provision for Bad and Doubtful Debts
417,704,065 389,808,475
ii. The movement in General provision for Special Mentioned Account (SMA)
Provision held at the beginning of the period 19,916,276 10,170,240
Add: Provision during the period 225,667,628 9,746,036
Add: Transfer from General Provision of Unclassified Loans
Less: Transferred to Provision for Bad and Doubtful Debts -
245,583,904 19,916,276
13.02 Provision against classified of loans, advances and lease/investments
Substandard 67,128,738 27,158,012
Doubtful 25,529,720 66,279,479
Bad/Loss 754,256,672 630,299,185
846,915,130 723,736,676
13.03 Movement of Provision against Classified Loans and Advances

m
The movement in specific provision for Bad and Doubtful Debts
Provision held at the beginning of the period 723,736,676 461,309,384
Less : Fully provisioned Depreciated/written off loan during the period - -
Add: Recovery of amounts previously Depreciated /written off Loan
Add: Special provision kept for the period for other Accounts
Add: Transferred to general provision of Unclassified Loans
. co -
-
-
-
-
-
Less: Recoveries and such provision which are no longer required - -
bd
Add: Net charge to Profit and Loss Statement (Note 36) 123,178,454 262,427,292
Provision held as on 31 December 846,915,130 723,736,676

13.04 Movement the Provision against Off Balance Sheet (OBS) items
ka

Provision held at the beginning of the period 160,459,933 165,914,312

Less : Transferred to general reserve - -
Add: Provision made during the period 59,700,136 -
Less: Adjustment during the period - 5,454,379
n

Provision held as on 31 December 220,160,069 160,459,933

la

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.

13.05 Payable to Recognized NRBC Bank Employees’ Gratuity Fund

Opening Balance - -
Add: Contribution made by Bank during the year 6,500,000 21,000,000
Less: Release from Bank to the Fund 6,500,000 21,000,000
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.

13.06 Provision for diminution of Share of listed Company and Securities

Opening Balance 32,401,536 -
Add: Provsion kept for devaluation of Share value of DSE & CSE invest by Bank 108,194,986 32,401,536
Less:Decrease of devaluation of Share value of DSE & CSE invest by Bank -
Closing Balance 140,596,522 32,401,536

75
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka

13.07 Accrued Interest Payable

Interest Payable on CD A/C -
Interest Payable on SB A/C - -
Interest Payable on SND A/C -
Interest Payable of FDR-Day basis 5,884,016 8,731,391
Interest Payable of FDR-1 month 412,436 300,989
Interest Payable of FDR-1 month-Agent 24 -
Interest Payable of FDR-3 months 37,905,136 34,133,962
Interest Payable of FDR-3 months-Agent 11,400 5,656
Interest Payable of FDR-6 months 77,761,242 58,982,058
Interest Payable of FDR-6 months-Agent 39,331 73,779
Interest Payable of FDR-12 months & above 204,536,483 185,180,539
Interest Payable of FDR-12 months-Agent 193,138 57,821
Interest Payable of FDR-24 months 6,802,387 13,635,532
Interest Payable of FDR-24 months -Agent 90,219 65,958
Interest Payable of FDR-36 months 25,801,548 17,696,795
Interest Payable on Deposit Under Scheme 2,289,057,272 1,101,813,020
Interest Payable on borrowing from Bangladesh Bank 224,873 10,181,845

m
Interest Payable on borrowing from Other Banks & FIs 35,965,278 58,449,306
Interest Payable on Repo borrowing from Other Banks & FIs 2,349,849 -
Interest Payable on borrowing from Call Money and Short Notice 355,556 6,250

13.08 Current Income Tax Payable

Adjusted Opening Balance
Add: Provision made during the Year
. co (Note: 39)
2,687,390,186

2,147,730,763
955,249,363
1,489,314,899

1,437,390,036
734,330,756
Less: Payment/Adjustment - 23,990,029
bd
3,102,980,126 2,147,730,763
Final Tax Settlement for the Financial Year 2013 (Assessment Year 2014-15) after Tribunal Order dated 21.10.2018

13.09 Deferred Tax Payable

ka

Opening Balance
Additional Expenses during the Year - -
Less: Adjustment/Settlement - -
- -
n

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
la

tax purpose unless it will be expense while write off from Books of account and will be charge in the profit & loss account.

13.10 Movement of Interest Suspense Account:

Opening Balance at 1 January 156,786,910 82,035,207
Add: Amount of Interest Transferred/credited as suspended in the Year 1,092,418,331 442,626,814
1,249,205,242 524,662,020
Less: Amount of suspended interest Recovered during the year 777,304,886 360,183,515
Less: Amount of suspended interest depreciated/Waiver during the year 327,177 7,691,595
471,573,179 156,786,910
13.11 Inter Branch General Account (IBGA) Balance-Credit Balance No. of Entry
Inter Branch General Account Credit Balance - 2,440,001
Inter Branch General Account Debit Balance - 52,913
- 2,387,088
13.a Consolidated Other liabilities
NRBC Bank Limited 8,780,016,585 5,631,698,497
NRBC Bank Securities Limited 36,556,847 33,145,451
8,816,573,432 5,664,843,948
Less: Inter company transaction 1,284,278 1,202,802
8,815,289,154 5,663,641,146

76
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka

14 Share Capital
14.1 Authorized Capital
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

571,095,124 ordinary shares of Taka 10 each issued for cash 5,710,951,240 5,145,001,340

14.3 Movement of Paid-up-Capital

Opening Balance 5,145,001,340 5,145,001,340
Addition during the Year by issuing Stock Dividend 565,949,900 -
5,710,951,240 5,145,001,340
14.4 Particulars of Share Capital
Shareholding
Particulars
In Number In Percentage
Sponsors/Promoters 571,095,124 100%
Financial Institutions - -
Others - -
Total 571,095,124 100%

14.5 History of Paid Up Capital :

m
Year Declaration Number of Shares Value (TK) Commulative
2013 Initial 444605900 4,446,059,000 4,446,059,000
2014 0 - 4,446,059,000
2015 0 - 4,446,059,000
2016
2017
2018
Bonus @3% for the Year-2015
Bonus @7% for the Year-2016
Bonus @ 5% for the Year-2017
co 13338177
32056069
24499988
133,381,770
320,560,690
244,999,880
4,579,440,770
4,900,001,460
5,145,001,340
2019 Bonus @ 11%for the Year-2018 56594990 565,949,900 5,710,951,240
.
bd
14.6 Name of the Directors and their shareholdings according to Form XV :
SL Name of the Directors Status No of Shareholding
1 Mr. S M Parvez Tamal Director & Chairman of the Board 32,296,190
2 Mr. Mohammad Shahid Islam, MP Director & Vice Chairman 24,579,951
ka

3 Mr. Mohammed Adnan Imam Director 18,072,684

4 Mr. Rafikul Islam Mia Arzoo Director 29,866,294
5 Mr. Abu Mohammad Saidur Rahman Director 24,009,300
6 Mr. Mohammed Oliur Rahman Director 24,157,058
7 Mr. Abu Bakr Chowdhury Director 25,689,951
n

8 Mr. Loquit Ullah Director 26,143,674

9 Mr. Mohammed Nazim Director 26,201,895
la

10 Dr. Nuran Nabi Director 2,568,995

11 Mr. Mohammed Manzurul Islam Director 1,302,993
12 Mr. AKM Mostafizur Rahman Director 19,409,113
The Board of directors represent/hold 44.53% share of the company.

14.7 Capital to Risk Weighted Assets Ratio (CRAR) - as per 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:
Amt in Crore Amt in Crore
14.8 Core Capital/Common Equity (Tier I) (Going Conrcern Capital) Solo Basis Consolidated Basis
Fully Paid-up Capital/Funds from Head Office for the Purpose of Meeting the Capital Adequacy 571.10 571.10
Non-Repayable Share Premium Account
Statutory Reserve 145.88 145.88
General Reserve - -
Retained Earnings 101.51 102.59
Dividend Equalization Account - -
Non-Controlling Interest in Subsidiaries - 4.12
Actuarial gain/loss (Actuarial gain/loss kept in books in Bangladesh for Foreign Banks) - -
Non-repatriable interest-free funds from Head Office for the purpose of acquisition of property - -
and held in a separate account and have the ability to absorb losses regardless of their source
(Applicable for Foreign Banks)
Others (If any Items appoved by Bangladesh Bank) - -

77
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka

Amt in Crore Amt in Crore

Solo Basis Consolidated Basis
Regulatory Adjustment from Tier-1 (Core Capital)
Shortfall in provisions required against Non Performing Loan (NPLs) - -
Shortfall in provisions required against investment in shares - -
Remaining deficit on account of revaluation of investments in securities after netting off from - -
any other surplus on the securities
Goodwill and all other Intangible Assets - -
Deferred Tax Assets (DTA) 30.17 30.17
Defined benefit pension fund assets - -
Gain on sale related to securitization transaction - -
Investment in own CET-1 Instruments/Shares (as per Para 3.4.7 of Basel III Guidelines) - -
Reciprocal Crossholdings in the CET-1 Capital of Banking, Financial and Insurance Entities - -
Any investment exceeding the approved limit under section 26 ka(1) of Bank Company Act, 1991 - -
(50% of Investment)
Investments in subsidiaries which are not consolidated (50% of Investment) - -
Others, if any
Total Admissible Tier-I Capital 788.32 793.52
Additional Tier-1 Capital
Non-Cumulative irredeemable Preference Share - -

m
Instruments issued by the banks that meet the qualifying criteria for AT1 (as specified in Annex-4 - -
of Basel III Guidelines)
Minority Interest i.e. AT1 issued by consolidated subsidiaries to third parties as specified in - -
Annex-4 of Basel III Guidelines (for consolidated reporting)
co
Head Office borrowings in foreign currency by foreign banks operating in Bangladesh for
inclusion in Additional Tier 1 capital which comply with the regulatory requirements as specified
in Annex-4 of Basel III Guidelines (Applicable for Foreign Banks)
- -

Any Other item speciffically allowed by BB from time to time for inclusion in AT-1 - -
.
Others (if any items approved by BB) - -
bd

Regulatory Adjustment from Tier-1

Investment in own AT-1 Instrument/Share (as per Para 3.4.7 of Basel III Guidelines) - -
Reciprocal Crossholding in the AT-1 Capital of Banking Financial and Insurance Entities - -
ka

Others, if any - -

Total Additional Tier-1 Capital Available 788.32 793.52

Maximum Limit of AT-1 (AT -1 Capital can be maximum upto 1.5% of the total RWA or 33.33% of
CET1, which ever is higher) 262.75 264.48
n

Excess amount over Maximum limit of AT-1 - -

Total Admissible Additional Tier-1 Capital
la

Tier -2 Capital 102.40 104.44

General Provision - -
All other Preference share - -
Subordinated debt/Instruments issued by the banks that meet the qualifying criteria for Tier 2 - -
capital (as per Annex 4 of Basel III Guidelines)
Minority Interest i.e. Tier-2 issued by consolidated subsidiaries to third parties (for consolidated
reporting only)
Head Office (HO) borrowings in foreign currency received that meet the criteria of Tier 2 debt 1.75 1.75
capital (Applicable for Foreign Banks)
Revaluation Reserves as on 31 December 2014 (50 % of Fixed Assets & Securities and 10% of Equities) - -
Others (if any items approved by Bangladesh Bank) 104.15 106.19
104.15 106.19
Regulatory Adjustment from Tier-2
Revaluation Reserves for Fixed Assets, Securities and Equities Securities (Phase in deductions as 1.75 1.75
per Basel III. i.e. 100% for 2014)
Investment in own T-2 Instrument/Share as per BASEL III - -
Reciprocal crossholdings 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)
Investment in Subsidiaries which are not consolidated (50% of Investment) - -
Others, if any - -
78
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka

Amt in Crore Amt in Crore

Solo Basis Consolidated Basis
1.75 1.75
Total Tier -2 Capital Available 102.40 104.44
Maximum Limit of Tier -2 Capital (Maximum up to 4% of the Total RWA or 88.89% of CET1, which 700.74 705.36
ever is higher)
Excess amount over Maximum Limit of T-2 -
Total Admissible Tier-II Capital 102.40 104.44
Total Regulatory Capital 890.73 897.97

A. Total Assets including off-Balance Sheet items 11,752.63 11,763.55

B. Total Risk-Weighted Assets (RWA) 6,646.22 6,651.87
C. Required capital based on Risk Weighted Assets (12.50% of Total RWA for 2019) 830.78 831.48
D. Capital Surplus / (Shortfall) 59.95 66.48
(h) Capital to Risk Weighted Assets Ratio (CRAR) (%) 13.40% 13.50%
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

m
Required Held Required Held
Core Capital (Tier - I) plus Cap. Conservation Buffer 7.000% 11.86% 7.000% 11.93%
Supplementary Capital (Tier II) 1.54% 1.57%
Total Capital to Risk Weighted Assets Ratio (CRAR) 13.40% 13.50%

Minimum Total Capital plus Capital Conservation Buffer for 2019

co 12.5000% 12.5000%

Excess of CRAR for 2019 0.90% 1.00%

.
bd
Capital to Risk Weighted Assets Ratio (CRAR) has been calculated as per Basel -III, BRPD Circular no. 18 dated December 21, 2014
15 Statutory Reserve
Opening Balance at the beginning of the period 1,050,341,869 737,865,685
Add: Addition during the year 408,501,272 312,476,184
ka

Add/(less): Adjustment for Foreign Exchange Rate Fluctuation - -

Closing Balance at the end of the period 1,458,843,141 1,050,341,869
* As per Section-24 of Banking Companies Act 1991, 20% of Pre Tax Profit has been transferred to Statutory Account
16 Reserve and Fund
n

General Reserve (Note 16.1) - -

Assets Revaluation Reserve (Note 16.2) - -
la

Investment Revaluation Reserve (Note 16.3) 5,009,947 10,945,329

Foreign Currency Translation Gain/ (Loss) (Note 16.4) - -
5,009,947 10,945,329
16.1 General Reserve
Opening Balance at the beginning of the period - -
Add: Addition during the year - -
Closing Balance at the end of the period - -
As per rule, Bonus Share/ Cash Dividend may be issued out of surplus of the profit of the year. If there is any shortfall, that may be covered
from General Reserve Account as per approval of Board of Directors of the Bank.
16.2 Assets Revaluation Reserve
Opening Balance at the beginning of the period - -
Add: Addition during the year - -
Less : Adjustment during the year -
Closing Balance at the end of the period -
16.3 Investment Revaluation Reserve
Revaluation Reserve for HFT Securities
Opening Balance at the beginning of the period 8,779,800 -
Add: Addition during the year - 8,779,800
Less : Adjustment during the year 7,802,266 -
Closing Balance at the end of the period 977,534 8,779,800

79
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka

Revaluation Reserve for HTM Securities

Opening Balance at the beginning of the period 2,165,529 82,723
Add: Addition during the year 1,866,884 2,082,806
Less : Adjustment during the year - -
Closing Balance at the end of the period 4,032,413 2,165,529

16.4 Foreign Currency Translation Gain/ (Loss)

Opening Balance at the beginning of the period - -
Add: Addition during the year - -
Closing Balance at the end of the period -
Bank has no exposure of Foreign Currency demoniated business in abroad

16a Consolidated Other Reserve:

NRBC Bank Limited 5,009,947 10,945,329
NRBC Bank Securities Limited - -
5,009,947 10,945,329
17 Retained Earnings/Movement of Profit and Loss Account
Opening Balance 841,318,178 709,451,705

m
Add: Post-Tax Profit during the period 1,148,264,352 934,342,803
Less: Transfer to Statutory Reserve 408,501,272 312,476,184
Less: Cash Dividend 245,000,073
Less: Stock Dividend
Less: Payment the Fraction of share to shareholder
Less: Transfer to General Reserve
Add/(Less): Foreign Exchange Translation Loss
. co 565,949,900
247
-
-
244,999,880
193
-
-
1,015,131,111 841,318,178
bd
17a Consolidated Retained Earnings/Movement of Profit and Loss Account
NRBC Bank Limited 1,015,131,111 841,318,178
NRBC Bank Securities Limited 12,009,932 6,704,090
1,027,141,043 848,022,269
ka

Less: Non-Controlling Interest 1,200,993 670,409

1,025,940,050 847,351,860
17b Non-Controlling Interest
NRBC Bank Securities Limited:
n

Equity Capital of Non-Controlling Interest 40,000,000 40,000,000

Add: Retained Earning/(Loss) 1,200,993 670,409
la

41,200,993 40,670,409

18 Contingent liabilities 27,408,198,566 19,455,251,048

18.1 Acceptances and Endorsements

Accepted Bills Against BTB LC - Local 2,604,659,444 2,249,131,538
Accepted Bills Against BTB LC - Foreign 732,475,975 767,282,387
Customer Liability agst EDF Fund 173,991,958 147,900,048
Bankers Liability against EDF Fund - -
Accepted Bills Against BTB LC EPZ 1,361,204,000 1,079,424,328
Accepted Bills Against LC Cash 2,338,257,148 2,091,166,098
7,210,588,526 6,334,904,399
18.2 Letters of Guarantee
Money for which the Bank is in contingently liable in respect of guarantees to the:

Directors - -
Government - -
Banks and other Financial Institutions - -
Others (Note 18.2a) 10,437,378,649 5,083,593,069
10,437,378,649 5,083,593,069
80
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka
18.2a Letters of Guarantee -Others
Shipping Guarantee Against Cash LC-Sight 69,932,304 68,491,253
Bid Bond Local 843,212,744 329,463,123
Performance Guarantee Local 6,653,257,460 3,273,095,563
Advance Payment Guarantee Local 2,870,976,141 1,412,543,129
Shipping Guarantee agst. BTB LC - -
Performance Guarantee Foreign - -
10,437,378,649 5,083,593,069

18.3 Irrevocable Letters of Credit 5,729,243,714 4,627,495,838

18.4 Bills For Collection 4,030,987,678 3,409,257,742

2019 2018
19 Income statement Taka Taka
Income :
Interest, discount and similar income (Note-19.1) 7,998,409,900 6,494,091,113
Dividend income (Note-22) 23,528,236 32,688,077
Fees, commission and brokerage (Note-23) 778,123,509 519,597,815
Gains less losses arising from dealing in securities (Note-19.2) 163,544,233 9,693,392
Gains less losses arising from investment securities - -

m
Gains less losses arising from dealing in foreign currencies - -
Income from non-banking assets - -
Other operating income (Note-24) 205,017,690 162,171,143
Profit less losses on interest rate changes - -

Expenses :
Interest / profit paid on deposits, borrowings, etc. (Note-21)
Losses on loans, advances and lease/ investments
. co 9,168,623,569

4,488,125,258
-
7,218,241,540

3,643,918,372
-
Administrative expenses (Note-19.3) 1,752,101,859 1,409,302,887
bd
Other operating expenses (Note-35) 197,585,115 125,092,605
Depreciation on banking assets (Note-34) 143,668,182 150,670,988
6,581,480,415 5,328,984,852
Operating Profit of the Bank 2,587,143,154 1,889,256,688
ka

19.1 Interest, discount and similar income

Interest Income (Note 20) 7,024,973,538 5,792,018,101
Interest on Treasury Bills (Note:22) 111,891,646 -
Interest Income Money at Call (Note:22) 47,268,053 34,082,778
Interest on Treasury Bonds (Note:22) 682,285,386 514,889,767
n

Interest on Coupon Bonds (Note:22) 131,837,018 153,060,636

Interest on Reverse Repo (Note:22) 54,260 39,831
la

Interest on Zero Coupon Bonds - -

Interest on Bangladesh Bank Bill (Note:22) - -
Gain on Sale of Assets, Properties and Others 99,999 -
7,998,409,900 6,494,091,113
19.2 Gains less losses arising from dealing in securities
Gain on Sale of Shares and Securities listed with DSE/CSE (Note:22) 718,093 20,477,662
Gain on Sale of Bonus Shares listed with DSE/CSE (Note:22) - -
Gain on Sale of Approve Govt. Securities (Note : 22) 333,475,120 122,644,311
334,193,213 143,121,972
Less : losses arising from dealing in securities 170,648,980 133,428,580
163,544,233 9,693,392
19.3 Administrative expenses
Salaries and Allowances (Note : 25) 1,252,370,075 1,005,723,440
Rent, Taxes, Insurance, Electricity, etc. (Note : 26) 321,329,968 274,897,470
Regulatory and Legal expenses (Note : 27) 2,015,588 1,786,836
Postage, Stamps, Telecommunication, etc (Note : 28) 28,816,178 23,406,075
Stationery, Printing, Advertisement, etc (Note : 29) 99,060,787 44,466,994
Chief Executive’s salary and fees (Note : 30) 16,380,000 11,739,167
Directors’ Fees & Meeting Expenses (Note : 31) 11,968,400 15,777,661
Auditors’ Fees (Note : 32) 575,000 402,500
Purchsed of Spares parts/Accessories for Replacement of Banks Assets(Note: 34) 15,709,928 16,335,517
Repairs of Bank’s Assets (Note : 34) 3,875,936 5,016,358
1,752,101,859 1,399,552,018
81
 2019 2018
Taka Taka

20 Interest Income of the Bank

Interest on Loans and Advances:
Loans and Advances 6,727,624,206 5,555,109,410
Bills Purchased and Discounted 37,789,261 18,953,010
6,765,413,466 5,574,062,420
Interest on Balance with:
Bangladesh Bank - -
Foreign and Domestic Bank & Financial Institutions in Foreign Currency (FCY) 216,693,362 41,902,429.99
Bank & Financial Institutions in Local Currency (LCY) 42,866,710 176,053,252
259,560,072 217,955,682

7,024,973,538 5,792,018,101
20a Consolidated Interest Income
NRBC Bank Limited 7,024,973,538 5,792,018,101
NRBC Bank Securities Limited 14,301,949 10,200,726
7,039,275,487 5,802,218,827
Less: Inter company transaction 1,959,522 496,927
7,037,315,965 5,801,721,900

m
21 Interest Paid on Deposits and Borrowings, etc.
Interest Paid on Deposits (Note 21.1) 4,156,638,506 3,368,735,628
Interest Paid on Borrowings (Note 21.2) 331,486,752 252,998,180
4,488,125,258 3,621,733,808
21a Consolidated Interest Paid on Deposits and Borrowings, etc.
NRBC Bank Limited
NRBC Bank Securities Limited
co 4,488,125,258
1,144,755
3,621,733,808
251,326
4,489,270,013 3,621,985,134
.
Less: Inter company transaction 1,959,522 496,927
bd
4,487,310,491 3,621,488,207
21.1 Interest Paid On Deposits
Current Account 13,430,882 9,895,958
Sohoj Sonchoy 43,402,738 33,373,700
ka

Savings Account [Customer and Staff] 95,807,128 85,275,117

Special Notice Deposits (SND) 312,291,451 250,519,622
Fixed Deposit Receipts 954,651,504 1,147,347,760
Foreign Currency Deposit [FCD, NRTA, RFCD, etc] - 472,401
n

Schemes and Others Deposit 2,737,054,803 1,841,851,069

4,156,638,506 3,368,735,628
la

21.2 Interest Paid on Borrowings

Bangladesh Bank in Local Currency (LCY) 16,413,088 -
Banks and NBFIs in Foreign Currency (FCY) 219,750 -
Borrowing from Call and Short Notice 59,317,500 30,524,750
REPO Borrowed from Banks and NBFIs 36,977,210 9,011,377
Refinance from Bangladesh Bank 4,491,257 12,551,845
Inter Bank Borrowing 214,067,947 200,910,208
Secondary Security Purchased (T-Bond) - -
331,486,752 252,998,180
22 Investment Income
Interest on Treasury Bills 111,891,646 -
Interest Income Money at call and Short Notice Lending 47,268,053 34,082,778
Interest on Treasury Bond (Net) [Note:22.01] 682,285,386 492,705,203
Interest on Coupon/Sub-ordinate Bond 131,837,018 153,060,636
Interest on Reverse Repo 54,260 39,831
Dividend Income 23,528,236 32,688,077
Gain on Sale of Shares and Securities listed with DSE/CSE 718,093 20,477,662
Gain on Sale of Assets, Properties and Others 99,999 -
Gain on Sale of Approved Govt. Securities under section 32(7) 333,475,120 122,644,311
1,331,157,811 855,698,497

82
 2019 2018
Taka Taka

22.01 Interest Income on Treasury Bond (Net)

Interest on Treasury Bond Through Auction and purchased from Secondary Security 837,183,440 514,889,767
Interest Paid on Secondary Security Purchased (T-Bond) 154,898,055 22,184,564
682,285,386 492,705,203
22a Consolidated Investment income
NRBC Bank Limited 1,331,157,811 855,698,497
NRBC Bank Securities Limited 9,212,840 9,366,899
1,340,370,651 865,065,396
Less: Inter company transaction -
1,340,370,651 865,065,396
23 Commission, Exchange and Brokerage
Commission on Letter of Credit including Deemed Exporters 54,716,406 45,393,402
Commission on Back to Back Letter of Credit 53,709,568 45,468,616
Commission on L/C Confirmation 2,043,736 329,781
Commission on Bank Guarantee 146,902,833 65,085,504
Commission on Export Bills 6,569,862 5,174,881
Commission on Clean (FBP/IBP Purcahsed) Bill 432,602 151,183
Commission on Accepted Bills/LC including Deemed Exporters 24,554,014 18,645,432
Commission on Accepted Back to Back Bills/LC 56,647,122 47,028,749
Commission on Remittance including Foreign Remittance 11,062,411 5,715,079

m
Commission on Sale of FC Cash 176,123 112,848
Commission from Other Services 558,946 247,980
Underwriting Commission for selling of Govt. Securities 366,220 1,318,889
Commission on Agent Banking
co
Exhange gain for Trading of Foreign Currency through Export, Import, dealing, remittance (Net)
82,431
420,301,236
778,123,509
16,919
284,908,551
519,597,814
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
bd
NRBC Bank Limited 778,123,509 519,597,814
NRBC Bank Securities Limited 19,047,916 21,933,518
797,171,426 541,531,332
Less: Inter company transaction 1,601,369 2,428,801
ka

795,570,057 539,102,530
24 Other Operating Income
Service Charges and Fees 51,065,172 32,665,076
Rental Income-Locker 396,000 277,000
n

Online Client Services 1,676,261 1,145,663

Income from Card Services 13,857,099 6,571,777
Trade Finance incl. LC Advising, Swift Charge, LC Discrepancy, Postage Recovery, LC Amendment, etc. 112,861,261 100,345,013
la

Miscellaneous Earnings 25,161,897 17,658,521

205,017,690 158,663,048
24a Consolidated Other Operating Income
NRBC Bank Limited 205,017,690 158,663,048
NRBC Bank Securities Limited 787,204 664,619
205,804,895 159,327,668
Less: Inter company transaction 3,450 3,450
205,801,445 159,324,218
25 Salary and Allowance
Basic Salary 412,925,554 297,798,505
Festival Bonus 60,596,900 47,442,100
Yearly incentive Bonus 62,248,666 69,024,938
Leave Encashment/Retirement/Service benefit on Resignation from bank 14,388,819 12,065,908
Bank Contribution To Recognized NRBC Employees' Provident Fund 33,215,555 26,890,777
Contributed to Recognized NRBC Employees' Gratuity Fund Payment/Expense 6,500,000 21,000,000
Contractual Staff Salary 16,886,977 7,875,040
Salary of Security and Cleaning support Staff 108,998,669 87,386,724
Exgratia of Security and Cleaning support Staff 18,990,396 9,944,454
Liveries and Uniforms payment (Allowance) for Support Satff 884,217 955,066
Allowances and Passage for Travel/LFA 516,734,322 406,359,055
1,252,370,075 986,742,567

83
 2019 2018
Taka Taka

25a Consolidated Salaries and Allowances

NRBC Bank Limited 1,252,370,075 986,742,567
NRBC Bank Securities Limited 16,244,099 16,773,112
1,268,614,174 1,003,515,679
Less: Inter company transaction - -
1,268,614,174 1,003,515,679
26 Rent, Taxes, Insurance, Electricity, etc.
Office and Garage Rent (Note : 26.1) 221,125,201 202,860,230
Rates, Taxes and Duties including Trade License/Sign Board Tax/Toll/Parking/Excise duty (Note : 26.2) 16,771,412 3,203,549
Insurance Expenses inluding DMB Inurance to BB (Note : 26.3) 34,079,529 26,837,902
Electricity and Utility Expenses (WASA/Water Supply by Div./Purasuva and Lift & Guard Salary) 49,353,827 41,995,789
321,329,968 274,897,470
26.1 Office and Garage Rent
Office Rent Including ATM Booth * 221,042,671 193,657,147
Garage Car and Parking Charge 82,530 28,000
221,125,201 193,685,147
* In addition to note 2.2 regarding Departure of IFRS -16, According to lease agreement with landlord for office premises, termination clause
is maximum 06 months period referred to the right of use of the assets become fall below 12 months, hence lease liability will be questioned.
Depreciation and interest expense will be charge in the Profit and Loss account if we comply the IFRS - 16 and, none of the expenses, are not
subject to Tax and VAT as per acts.

m
26.2 Rates, Taxes and Duties
Trade/Gun License and Patent Right Tax 1,469,783 731,805
Holding, Municipality, Sign Board Tax 264,837 95,870
Vehicle Registration Fees & VAT, Tax token, Fitness, etc. 233,882 753,341
Toll and Parking Tax/Charge
Excise/Supplementary Duty
NBR Fees & Charge (Tax and VAT)
Other Rates and Taxes
. co 489,047
997,770
13,225,043
91,050
403,301
1,027,765
-
191,467
16,771,412 3,203,549
bd
26.3 Insurance Expenses inluding DMB Inurance to BB
Deposit Money Insurance to Bangladesh Bank 28,910,456 22,545,950
Vehicle Insurance Premium 719,258 516,434
Fixed Asset Insurance Premium 1,044,922 1,127,938
Central Insurance Policy (Cash in safe, Counter & Transit) 3,404,893 2,647,580
ka

34,079,529 26,837,902
26a Consolidated Rent, Taxes, Insurance, Electricity, etc.
NRBC Bank Limited 321,329,968 274,897,470
NRBC Bank Securities Limited 3,742,639 5,266,668
n

325,072,607 280,164,138
Less: Inter company transaction -
325,072,607 280,164,138
la

27 Regulatory and Legal expenses

Notary Public Charge and Govt. Fees - 4,000
Consultancy/Professional Fees and Charges 834,171 321,900
Legal and Consultancy fees 871,263 1,308,400
Power of Attorney/Court Fees with Stamp Charge 192,000 102,500
DSE and CDBL Fees 15,000 33,000
RJSC and SEC Fees 103,154 17,036
2,015,588 1,786,836
27a Consolidated Legal/Preliminary Expense
NRBC Bank Limited 2,015,588 1,786,836
NRBC Bank Securities Limited - 73,310
2,015,588 1,860,146
Less: Inter company transaction - -
2,015,588 1,860,146
28 Postage, Stamps, Telecommunication, etc
Stamps and Cartridge Cost 73,997 114,789
Govt. Postal/Registered Postal Service Charge 68,324 52,467
Courier Charges 3,254,049 2,415,774
Telephone and Mobile Expenses 9,135,558 7,535,666
Internet & WIFI Expense and WAN(Link) Connection Charges 16,284,250 13,287,379
28,816,178 23,406,075

84
 2019 2018
Taka Taka

28a Consolidated Postage, Stamps, Telecommunication, etc

NRBC Bank Limited 28,816,178 23,406,075
NRBC Bank Securities Limited 1,105,752 910,362
29,921,930 24,316,437
Less: Inter company transaction -
29,921,930 24,316,437
29 Stationery, Printing, Advertisement, etc
Stationery and Printing Expenses (Note 29.1) 27,033,357 17,720,211
Advertisement and Sponsorship Expense (Note 29.2) 14,788,852 22,033,929
Hoarding & Neon Sign and Misc Advertisement - 7,710
Computer and Software related Expense (Note 29.3) 57,238,577 14,456,014
99,060,787 54,217,864
29.1 Stationery and Printing Expenses
Printing Stationery 4,366,560 5,830,029
Security Papers/ Stationeries 7,806,655 4,638,460
Office Stationeries 13,265,102 6,836,878
Crockeries and Utensils Expense 786,000 414,845
Electric Bulbs/Tube and Wire Expense 809,040 0
27,033,357 17,720,211
29.2 Advertisement and Sponsorship Expense
Advertisement in News Papers and Megazine 8,607,352 11,330,987

m
Advertisement for mourn/Death (VAT Exempted) in News Paper 75,900 1,147,550
Souvenir/ Calender / Dairy 3,908,500 -
Advertisement in Radio, Television and Online Media 702,100 9,205,600

29.3
Sponsorship of program, event and sports

Computer and Software related Expense

Computer Papers/Stationeries
co 1,495,000
14,788,852

-
349,792
22,033,929

1,282,888
Toner, Ribon, Printer Ink Expenses 6,213,513 3,166,596
.
CBS Annual Maintenance Expense 17,268,972 7,132,192
bd
Software (Other) Maintenance Cost/Expense 5,921,318 2,832,987
Data Base Software Annual Maintenance Expense 12,494,000 0
DC and DRC Maintenance Expense 1,500,000 0
Parts purchased (Replacement) for DC and DRC 1,642,000 0
ka

IT Enable Expenses 12,198,774 41,350

57,238,577 14,456,014
29a Consolidated Stationery, Printing, Advertisement, etc
NRBC Bank Limited 99,060,787 54,217,864
NRBC Bank Securities Limited 801,878 438,648
n

99,862,664 54,656,512
Less: Inter company transaction -
la

99,862,664 54,656,512
30 Chief Executive’s salary and fees
Basic Salary 8,450,000 5,785,000
Festival Bonus 1,300,000 1,300,000
Other Allowance 6,630,000 4,654,167
16,380,000 11,739,167
31 Directors’ Fees & Meeting Expenses
Directors’ Fees 1,342,000 2,051,600
Directors’ Haulage and Travel including Travel Tax and Excise duty ( BB Circular) 8,913,123 11,920,497
Directors Meeting Stationery Expense 99,962 21,897.25
Board Meeting Expenses including refreshment and Tips to the Drivers 1,613,315 1,783,666
11,968,400 15,777,661

Each Director is entitled to get honorium & 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

NRBC Bank Limited 11,968,400 15,777,661
NRBC Bank Securities Limited 59,820 112,100
12,028,220 15,889,761
Less: Inter company transaction - -
12,028,220 15,889,761

85
 2019 2018
Taka Taka

32 Auditors’ Fees
Statutory 575,000 402,500
Others - -
575,000 402,500
32a Consolidated Auditors’ fees
NRBC Bank Limited 575,000 402,500
NRBC Bank Securities Limited 57,500 46,000
632,500 448,500
33 Charges on Loan Losses
Loan-written off - -
Interest waived - -

34 Replacement, Repair and Depreciation of Bank’s Assets

Purchsed of Spares parts/Accessories for Replacement of Banks Assets (a):
Items purchased for Land, Building and Construction 85,721 92,472
Items/Accessories purchased (Replacement) for Furniture and Fixtures 1,453,407 3,544,683
Parts purchased (Replacement) for Equipment & Machinerieses 7,734,559 8,840,929
Items/Accessories purchased (Replacement) for Rented Premises 831,422 297,105
Electricity Connection Fee, Installation & Replacement (Paid to Electricity Authority) 2,275,994 1,397,916

m
Telephone Connection Fee, Installation & Replacement (Paid to TNT Authority) 83,927 84,970
Domain/Internet Connection Fee & Installment 6,099 12,830
Parts/Accessories purchased (Replacement) for Computer and Computer Equipment 455,551 255,660
Parts/Accessories purchased (Replacement) for Vehicles
Parts purchased (Replacement) for Plant
Parts purchased (Replacement) for Premises
co 2,776,199
3,000
4,050
1,775,192
25,500
8,260
15,709,928 16,335,517
.
Repair, Renovation & Maintenance of Bank’s Assets (b):
bd
Repair and Maintenance for Furniture and Fixtures 786,248 1,181,561
Repair and Maintenance for Equipment & Machineries 1,680,047 2,566,721
Repair and Maintenance for Rented Premises 424,533 -
Repair and servicing of Computer and Hardware 92,995 84,614
ka

Repair and Servcing of Vehicles 892,113 1,183,462

3,875,936 5,016,358
Depreciation of Bank’s Assets-Own Assets (c) *:
Land, Building and Construction - -
n

Furniture & Fixtures 36,971,030 31,878,344

Equipment and Machinery 62,578,141 59,613,054
la

Computer &Computer Equipment 12,323,573 24,282,121

Intangible Assets/ Bangladesh Made Computer Software 25,640,446 24,643,520
Motor Vehicle 6,153,332 6,329,997
Books 1,661 4,674
143,668,182 146,751,710
Depreciation of Bank’s Assets-Leased Assets (d)*:
Land, Building and Construction - -
Furniture & Fixtures - -
Equipment and Machinery - -
Motor Vehicle - 3,919,278
- 3,919,278
*Depreciation has been charged from the month of purhased
Total [a+b+c+d] 163,254,046 172,022,863

34a Consolidated Depreciation and Repairs

NRBC Bank Limited 163,254,046 172,022,863
NRBC Bank Securities Limited 2,556,311 2,554,328
165,810,358 174,577,190
Less: Inter company transaction - -
165,810,358 174,577,190

86
 2019 2018
Taka Taka

35 Other Expenses
Bank Charges (Note: 35.1) 3,013,259 2,614,648
Donation/Contribution and Corporate Social Responsibility (CSR) 22,736,400 35,565,415
Car, Vehicles and helicopters Expenses (Note: 35.2) 9,874,641 4,345,787
Brokerage/Commission to Bank/FIs/Share Trading Co. (Note: 35.3) 789,413 533,557
Training, Scholarship and Allowance (Note: 35.4) 6,122,708 9,742,011
Annual Subscription/Membership Fees-Regulatory/Govt./Institutions/Trade Association/Others 4,733,615 6,325,906
Entertainment and Refreshment Expenses (Note: 35.5) 15,121,269 8,687,788
Travelling Expenses (Inland & Foreign) for official purpose (Note: 35.6) 8,762,055 9,277,622
Conveyance, Carriage, Freight and Worker Charge (Note: 35.7) 7,683,495 5,567,246
Payment for Development and Publicity Purpose (Note: 35.8) 12,691,236 9,832,227
Manpower/Security Service Providers Commission & Charge (Note: 35.9) 28,739,057 18,980,873
First Aid/Medical Expenses 845,864 196,025
Newspaper, Magazine and Periodicals 697,248 822,471
Loss on Sale of Share listed with Stock Exchange 1,480,540 -
Loss on sale of Secondary Govt. Trading Securities 46,999,840 7,183,551
Interest Expense on Leased Properties - 410,801
Card Charges and Expenses (Note: 35.10) 390,278 8,398,559
Miscellaneous Expenses (Note: 35.11) 26,101,018 18,519,912

m
Agent Banking Charges and Expenses 2,980,966 744,535
Loss on HFT (Rev) Treasury Bonds 168,471,192 126,245,029
368,234,095 273,993,963
35.1 Bank Charges
Clearing Cheque Charge (VAT Incl.)
Online/SMS Banking Charge (VAT Incl.)
Bank Charge incl. A/c Maintain./Cheq. Issue (VAT Incl.)
. co 149,817
1,136,870
1,555,972
390,652
1,680,959
228,296
NPSB Transactions Commission (VAT Incl.) 170,601 312,384
bd
Bank Charge for Card Business (VAT Incl.) - 2,358
3,013,259 2,614,648
35.2 Car and Vehicles Expenses
Car or Vehicles Fuel (Oil/Gas/LPG) Cost 6,499,480 4,288,587
ka

Car or Vehicles Hiring Charge 3,375,161 57,200

9,874,641 4,345,787
35.3 Brokerage/Commission and Discount paid to Bank/FIs
Commission paid to Bank/FIs 4,219 15,764
Brokerage Commission/Fees - Share Trading (VAT Exempted) 785,194 516,288
n

Commission and Charge Paid ot Others 0.06 1,505

789,413 533,557
la

35.4 Training, Scholarship and Allowance

Training and Seminar Fees & Expenses (Note 35.4.1) 1,585,404 2,180,103
Recruitment Test/Fees/Allowance 815,387 1,040,301
Honorarium/Trainer Fees/Allowance 861,484 262,850
Scholarship and Higher Study Training 124,769 35,000
Research and Development Exp./Allowance 200 1,500
Internship Allowances to Universities Graduate 1,297,764 1,098,427
Stipend, Reward and Recognition 1,437,700 5,123,830
6,122,708 9,742,011
35.4.1 Training and Seminar Fees & Expenses
Domestic Training & Seminar Fees 628,872.00 966,353.00
Other Training Arranging Fees & Expenses 668,427.00 714,791.00
Foreign Training & Seminar Fees - 498,959.00
Seminar and Awareness Program Exp. by BB/Regulators 288,105.00 -
1,585,404.00 2,180,103.00
35.5 Entertainment and Refreshment Expenses
Process Food Items Through Mushak-11 (M-6.3) or VAT Paid 5,818,586 4,319,195
Food Items from Street or open Market 8,149,086 3,496,500
Green Food Item from open Market 1,153,597 872,093
15,121,269 8,687,788

87
 2019 2018
Taka Taka

35.6 Travelling Expenses (Inland & Foreign) for official purpose

Foreign Travel -Bank Sponsored 493,161 1,691,404
Foreign Travel - Govt. Sponsored * - 904,513
Inland or Domestic Travel by Staff 8,268,894 6,681,705
8,762,055 9,277,622
* Section 30(K) of Income tax Ordinance, 1984, Foreign Travel engagaed in providing any service to the Government or Travel for Trade
dalegates of Govt. will not be considered for limited of expense i.e. 1.25% of yearly Turnover.

35.7 Conveyance, Carriage, Freight and Worker Charge

Local Conveyance by Staff 7,280,037 5,486,103
Plumber, Electrician and labor Charge 392,858 -
Physically Carriage and Freight Charge 10,600 81,143
7,683,495 5,567,246
35.8 Payment for Development and Publicity Purpose
Business Development (Gift of Prize Bond, Goods/items to valued clients of the Bank) 10,378,606 3,110,086
Promotion and Routine Expense (Promotional Items Distributed to Prospective Clients) 2,312,630 6,722,142
12,691,236 9,832,227
35.8.1 Business Development
Goods/Gift items for Prospective Clients 8,095,683 561,143
Gift (Prize Bond) for clients 460,234 678,870
Event Management 1,481,045 1,323,988
Customer Gathering Expense 341,644 546,085

m
10,378,606 3,110,086
35.8.2 Promotion and Routine Expense
Promotional Fair by Bank or Govt. Invitation 37,773 585,667
Display/distribution of Gift/Leaflet/Banner/Festoon 1,981,877 5,988,396

35.9
Actor/Actress/Professional payment in Bank Occasion

Manpower/Security Service Providers Commission & Charge

Security Service Providers Commission & Charge
co 291,180
2,310,830

24,742,627
148,079
6,722,142

18,980,873
Manpower Service Providers Commission & Charge 3,996,430 -
.
28,739,057 18,980,873
bd
35.10 Card Charges and Expenses
Card IT enable Service (Charge paid to ITCL) - 8,398,559
Card Contract Point Verification 390,278 -
390,278 8,398,559
35.11 Miscellaneous Expenses
ka

Laundry and Cleaning Expenses (Note 35.11.1) 1,810,268 1,253,768

Binding, Photography and Photocopy 224,742 220,429
Cash Carrying/Remitting Charge to Security Service Provider 6,088,749 4,920,896
Nursery and Plantation Purchased 753,401 873,667
n

Other Professional Charges 2,300 39,100

Discomfort/Closing/Saturday Banking Allowance 4,617,440 3,854,394
Conference/Shareholders Meeting/Programs/Opening Ceremony Expense 12,167,692 6,701,010
la

NID Verification Charge to Bangladesh Election Commission (Incl. VAT) 201,558 463,790
Sundry Expenses 234,868 192,859
26,101,018 18,519,912
35.11.1 Laundry and Cleaning Expenses
Manual Laundry and Cleaning Expense 1,696,598 1,253,768
Auto Laundry and Cleaning Expense 113,671 -
1,810,268 1,253,768
35a Consolidated Other Expenses
NRBC Bank Limited 368,234,095 273,993,963
NRBC Bank Securities Limited 1,626,540 839,116
369,860,636 274,833,080
Less: Inter company transaction 1,604,819 2,432,251
368,255,817 272,400,828
36 Provision against loans and advances
i. Provision against unclassified loans and advances
Provision for Unclassified Loans and Advances inluding Staff Loan 27,895,590 27,755,283
Provision for SMA Loans and Advances 225,667,628 9,746,036
253,563,218 37,501,320
ii. Provision against classified loans and advances
Provision for Sub-Standard Loans and Advances 39,970,726 6,411,107
Provision for Doubtful Loans and Advances (40,749,759) 58,741,678
Provision for Bad & Loss of Loans and Advances 123,957,487 197,274,508
123,178,454 262,427,292
376,741,671 299,928,612
88
 2019 2018
Taka Taka

36a Consolidated provision against loans and advances

NRBC Bank Limited 376,741,671 299,928,612
NRBC Bank Securities Limited - -
376,741,671 299,928,612
37 Provision for Diminution in Value of Investments
Provision for Diminution in Value Quoted Company Share & Stock 108,194,986 32,401,536
Provision for Diminution in Value Unqoted Share & Stock - -
Provision for Other Assets
108,194,986 32,401,536
37a Consolidated Provision for Diminution in Value of Investments
NRBC Bank Limited 108,194,986 32,401,536
NRBC Bank Securities Limited 6,753,900 7,389,323
114,948,886 39,790,859
38 Other Provisions
Provision required on Off-Balance Sheet Exposures 59,700,136 (5,454,379)
Others - -
59,700,136 (5,454,379)
38a Consolidated Other Provisions
NRBC Bank Limited 59,700,136 (5,454,379)

m
NRBC Bank Securities Limited -
59,700,136 (5,454,379)
39 Current Tax Expense /Payable

1
SL

Taxable Income
Particulars
co 2019
Amount in Taka

2,540,806,283
2018
1,944,805,108
2 Current Tax Payable @37.5% before considering extra ordinery items 952,802,356 729,301,915
.
3 Less: 10% Tax exemption/rebate on actual expenditure of CSR [SRO 229/2011] (2,273,640) (3,556,542)
bd
4 Add: Dividend Income Tax [20% Tax as per Paripatra 2019-20] 4,705,647 6,537,615
5 Add: Gain on sale of Assets [15% u/s 32(5) & Paripatra 2019] 15,000
6 Add: Gain on Sale of Shares and Debentures [10% Tax as per SRO no.196/2015] - 2,047,766
7 Current Tax Payable after considering extra ordinery items 955,249,363 734,330,756
ka

8 Defferred Tax Assets for the period (61,007,354) (106,292,640)

9 Tax Expense for the Period 894,242,009 628,038,116

39a Consolidated Current Tax Expense

n

NRBC Bank Limited 894,242,009 628,038,116

NRBC Bank Securities Limited 3,950,873 4,202,868
la

898,192,882 632,240,984
39b Consolidated Current Tax Payable
NRBC Bank Limited 955,249,363 734,330,756
NRBC Bank Securities Limited 4,182,561 4,400,911
959,431,924 738,731,667
39b.1 Current Tax Payable for NRBC Bank Securities Limited
Tax on Taxable loss Tk. @ 35% 4,081,774 (502,680)
Defferred Tax Asset for the period - 502,680
4,081,774 -
40 Deferred Tax (Income)/Expense Carrying Amt Tax Base Temporary Difference
Fixed Assets 506,216,302 610,815,276 (104,598,974) (65,091,151)
Total deductitble Temporary Difference at Asset side
(104,598,974) (65,091,151)
Provision for classified loan 846,915,130 - (846,915,130) (723,736,676)
Total Deductible Temporary Difference at Liabilities side (846,915,130) (723,736,676)
Net Taxable deductible Temporary Difference [i.e. Tax will be paid in future period] (951,514,104) (788,827,827)
Tax Rate @37.5% i.e deferred Tax Liabilities (356,817,789) (295,810,435)
Less : Deferred Tax Income as at 2018 (295,810,435) (189,517,796)
Defered Tax Income for the year (61,007,354) (106,292,640)

89
 2019 2018
Taka Taka

40a Consolidated Deferred Tax (Income)/ Expense

NRBC Bank Limited (61,007,354) (106,292,640)
NRBC Bank Securities Limited (231,688) (198,043)
(61,239,042) (106,490,683)
41 Earnings Per Share (EPS)
Profit after Taxation 1,148,264,352 934,342,802
Number of Ordinary Shares outstanding 571,095,124 514,500,134
Earnings Per Share 2.01 1.82

41a Consolidated Earnings Per Share (EPS)

Net Profit attributable to the shareholders of parent company 1,153,039,610 937,320,543
Number of Ordinary Shares outstanding 571,095,124 514,500,134
Earnings Per Share 2.02 1.82

Earnings Per Share (EPS) has been computed by dividing the basic earnings by the number of ordinary shares outstanding as of 31 December
2019 in terms of Bangladesh Accounting Standard (BAS)-33.

42 Receipts from Other Operating Activities

m
Interest on Treasury Bills 111,891,646 -
Interest on Money at call 47,543,931 32,980,222
Interest on Treasury Bonds 563,519,061 514,294,663
Interest on Coupon Bonds
Interest on Reverse Repo
Gain on Sale of Shares and Securities listed with DSE/CSE
Gain on Sale of Approved Govt. Securities under section 32(7)
. co 124,043,082
54,260
718,093
333,475,120
164,507,556
39,831
20,477,662
122,644,311
Gain on Sale of Assets, Properties and Others 99,999 -
bd
Service Charges and Fees 51,065,172 32,665,076
Rental Income-Locker 396,000 277,000
Online Client Services 1,676,261 1,145,663
Income from Card Services 13,857,099 6,571,777
ka

Charges on Trade Finance 112,861,261 100,345,013

Miscellaneous Earnings 25,161,897 17,658,521
1,386,362,882 1,013,607,292
42a Consolidated Receipts from other operating activities
n

NRBC Bank Limited 1,386,362,882 1,013,607,292

NRBC Bank Securities Limited 1,345,509 1,350,858
la

1,387,708,391 1,014,958,150
Less: Cash Increase/(Decrease) through Intercompany Transaction -
1,387,708,391 1,014,958,150
43 Payments for Other Operating Activities
Rent, Taxes, Insurance, Electricity, etc 319,595,141 276,032,567
Regulatory and Legal expenses 2,015,588 1,786,836
Audit Fees 345,000 345,000
Postage, Stamps, Telecommunication, etc 29,688,583 23,809,528
Directors' fees & Meeting Expenses 11,968,400 15,777,661
Repair, Repalcement, Renovation & Maintenance of Bank's Assets 3,875,936 16,079,857
Purchsed of Spares parts/Accessories for Replacement of Banks Assets 15,709,928 5,016,358
Payment for Donation/Contribution/CSR and Subscription 92,156,028 35,565,415
Other Expenses 337,961,383 255,829,798
813,315,987 630,243,020
43a Consolidated Payments for Other Operating Activities
NRBC Bank Limited 813,315,987 630,243,020
NRBC Bank Securities Limited 2,066,966 1,297,547
815,382,952 631,540,567
Less: Cash Increase/(Decrease) through Intercompany Transaction - -
815,382,952 631,540,567

90
 2019 2018
Taka Taka

44 Payment for /(Received) of Other Assets

Advance Security Deposit 528,897 386,200
Suspense Account 25,329,017 16,772,601
Advance office Rent (38,875,632) (61,434,424)
Inter Branch General Account Balance (Dr. Balance) 2,895,338 -
(10,122,380) (44,275,622)
44a Consolidated Payment for /(Received) of Other Assets
NRBC Bank Limited (10,122,380) (44,275,622)
NRBC Bank Securities Limited 13,824,512 (6,700,583)
3,702,132 (50,976,205)
Less: Cash Increase/(Decrease) through Intercompany Transaction - -
3,702,132 (50,976,205)
45 (Payment)/Receive of Other Liabilities
FC Held Against BTB Bills, EDF Loan and Others 175,798,984 (1,046,771,095)
Inter Branch General Account Balance (Cr Balance) (2,387,088) 2,289,752
Current Tax Liability - (23,990,029)
Received aginst service of Card Busines (Accrued income) (851,063) 1,588,392
Lease Payable for Lease Hold Property - (5,601,368)
172,560,833 (1,072,484,349)

m
45a (Payment)/Receive of Other Liabilities
NRBC Bank Limited 172,560,833 (1,072,484,349)
NRBC Bank Securities Limited

46
Less: Cash Increase/(Decrease) through Intercompany Transaction

(Purchase)/ Sale of Government Securities

. co 172,560,833
-
172,560,833
(1,072,484,349)

(1,072,484,349)

Treasury Bills-HFT (2,671,004,130) (798,898,750)

bd
Treasury Bills-HTM (3,892,674,019) (448,642,481)
Adjustment of Revaluation (Gain)/Loss on Treasury Bills which is non cash (5,935,382) 10,862,606
(6,569,613,532) (1,236,678,624)
47 Currency Conversion Rates
ka

Assets and Liabilities as at 31 December 2019 denominated in foreign currencies have been converted to local currency Bangladesh
Taka (BDT) at the following exchange rates:

Currency Abbreviation Unit Equivalent BDT

US Dollar USD 1 84.90000
n

Japanese Yen JPY 1 0.77580

EURO EURO 1 94.87580
la

GBP GBP 1 111.01520

48 Highlights of overall activities of the Bank

2019 2018
Sl # Particulars
Taka Taka

1 Paid-up Capital 5,710,951,240 5,145,001,340

2 Total Capital 8,907,256,537 7,352,513,280
3 Capital Surplus 599,481,679 1,125,673,212
4 Shareholders' Equity/Capital 8,200,744,377 7,053,640,398
5 Total Assets 90,227,259,800 67,142,864,878
6 Total Deposits 71,879,793,228 54,085,640,209
7 Total Loans and Advances 62,059,563,385 48,151,880,309
8 Total Contingent Liabilities and Commitments 27,408,198,566 19,455,251,048
9 Credit-Deposit Ratio 82.54% 85.91%
10 Ratio of Classified Loans against Total Loans and Advances 3.20% 2.94%
11 Profit after Tax and Provisions 1,153,570,194 937,651,403
12 Loans Classified 1,985,090,849 1,414,400,000
13 Provision kept against Classified Loans 846,915,130 723,736,676
14 Provision Surplus/(deficit) - -

91
 2019 2018
Sl # Particulars
Taka Taka

15 Cost of Fund 9.97% 10.74%

16 Interest Earning Assets 80,400,098,322 60,133,876,757
17 Non-interest Earning Assets 9,827,161,478 7,008,988,122
18 Net Interest Income (NIM) 2,550,005,474 2,158,049,129
19 Return on Investments (ROI) 15.04% 13.89%
20 Return on Assets (ROA) 1.47% 1.50%
21 Income from Investments 1,340,370,651 887,249,960
22 Earnings Per Share 2.02 1.82
23 Net Income Per Share 2.02 1.82
24 Net Assets Value 14.36 13.71
25 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

i. Bank inaugurated another avenue of Islamic Banking window on January 20, 2020 of our 08 branches jointly after having permission
from Bangladesh Bank vide memo BRPD (P-3)/745(60)/2019-9274 Dated 14 November 2019
ii. The Board of Directors of NRBC Bank Limited in its 98th Board Meeting held on 4th May 2020 recommended Dividend @12% comprising
8% Cash Dividend and 4% stock dividend on the holding of shares on record date fixed by Board for the year end December 31, 2019.

m
Md. Mukhter Hossain
Managing Director & CEO
AKM Mostafizur Rahman
Director, BoD
. co
Rafikul Islam Mia Arzoo
Chairman, Audit Committee of BoD
S M Parvez Tamal
Chairman, BoD
bd
n ka
la

92
 Annexure-A

NRB COMMERCIAL BANK LIMITED

Currency wise balance position of FC Clearing Accounts With Bangladesh Bank
As of 31 December 2019
As at 31 December 2019 As at 31 December 2018
Currency Foreign Equivalent Foreign Equivalent
SL Name of the Account Location Conversion Conversion
Types Currency Amount in Currency Amount in
Rate Rate
Amount Taka Amount Taka

1 Bangladesh Bank FC Clearing Dhaka USD 917,497 84.9000 77,895,511 164,515 83.9000 13,802,800

2 Bangladesh Bank FC Clearing Dhaka Euro 2,091 94.8758 198,377 18,845 95.2349 1,794,658

Total 919,588 78,093,887 183,359 15,597,458

Annexure-B

Placement of Fund (FDR/TDR) with Banks/NBFIs

As of 31 December 2019
SL Name of the NFBIs Period Issue Date Maturity Date Principal Amount

1 Bangladesh Industrial Finance Company Ltd 365 Daily 3/11/2018 3/11/2019 52,404,994

m
2 Bangladesh Industrial Finance Company Ltd 365 Daily 4/15/2018 4/15/2019 55,070,529

3 International Leasing & Financial Services Limited. 366 Daily 5/19/2019 5/19/2020 30,000,000

5
International Leasing & Financial Services Limited.

FAS Finance and Invested Limited

. co 182 Daily

182 Daily
7/18/2019

7/4/2019
1/16/2020

1/2/2020
70,000,000

50,000,000

6 First Lease Finance and Ivestment Limited. 110 Daily 9/18/2019 1/6/2020 19,000,000
bd
7 Meridian Finance and Investment Ltd. 92 Daily 10/2/2019 1/2/2020 40,000,000

8 Prime Finance & Ivestment Limited 92 Daily 10/2/2019 1/2/2020 40,000,000

9 Union Capital Limited 92 Daily 10/2/2019 1/2/2020 40,000,000

ka

10 Union Capital Limited 182 Daily 10/6/2019 4/5/2020 50,000,000

11 Prime Finance & Ivestment Limited 180 Daily 10/9/2019 4/6/2020 35,000,000

12 Meridian Finance and Investment Ltd. 182 Daily 10/9/2018 4/8/2020 100,000,000
n

13 Bangladesh Finance and Investment Company Ltd. 91 Daily 10/22/2019 1/21/2020 80,000,000
la

14 Meridian Finance and Investment Ltd. 92 Daily 10/23/2019 1/23/2020 40,000,000

15 Union Capital Limited 92 Daily 10/28/2019 1/28/2020 50,000,000

16 Fareast Finance and Investment Limited. 91 Daily 10/29/2019 1/28/2020 50,000,000

17 GSP Finance Company (Bangladesh) Limited 92 Daily 11/3/2019 2/3/2020 150,000,000

18 Phoenix Finance & Investment Limited 91 Daily 11/3/2019 2/2/2020 40,000,000

19 Phoenix Finance & Investment Limited 182 Daily 11/12/2019 5/12/2020 40,000,000

20 Investment Corporation of Bangladesh (ICB) 91 Daily 12/29/2019 3/29/2020 450,000,000

Total 1,481,475,523

93
 Annexure-C
NRB COMMERCIAL BANK LIMITED
Currency wise balance position of Nostro Accounts
As at 31 December 2019
As at 31 December 2019 As at 31 December 2018
Name of Foreign Foreign
SL Name of the bank Location Conversion Equivalent Conversion Equivalent
currency Currency Currency
Rate to Taka Rate to Taka
Amount Amount
1 Habib American Bank New York USD 666,761 84.9000 56,607,996 875,198 83.9000 73,429,090
2 Mashreq Bank PSC New York USD 758,459 84.9000 64,393,142 558,500 83.9000 46,858,127
3 AB Bank Limited Mumbai Acu Dollar 20,919 84.9000 1,776,026 20,746 83.9000 1,740,558
4 Mashreq Bank PSC London GBP 95 111.0152 10,594 7,991 105.9825 846,882
5 United Bank of India Kolkata Acu Dollar 23,715 84.9000 2,013,396 60,302 83.9000 5,059,324
6 United Bank of India Kolkata Acu Euro 969 94.8758 91,898 - - -
7 Mashreq Bank PSC London EURO Account Closed 29,664 95.2349 2,825,031
8 BHF-Bank Aktiengesellschaft, EURO
Account Closed Account Closed
Germany
9 Mashreq Bank PSC Mumbai Acu Dollar 4,446 84.9000 377,444 1,022 83.9000 85,746
10 National Bank of Pakistan Tokyo Jap. Yen 3,855,944 0.7758 2,991,441 5,831,025 0.7533 4,392,511
11 Kookmin Bank Seoul USD 23,245 84.9000 1,973,517 18,880 83.9000 1,584,041
12 Kookmin Bank Seoul GBP 1,083 111.0152 120,253

m
13 Habib Metro Bank Limited Karachi Acu Dollar 62,671 84.9000 5,320,789 21,461 83.9000 1,800,598
14 Aktif Yatirim Bankasi A.S Istanbul EURO Account Closed Account Closed
15 Banca UBAE S.P.A Rome EURO 1,383 94.8758 131,236
16 Axis Bank Limited
Total
Kolkata Acu Dollar
. co
122,398
5,542,088
84.9000 10,391,581
146,199,314
69,508
7,494,296
83.9000 5,831,704
144,453,613

Annexure-D
Disclosure regarding of the securitites under Repo and Reverse Repo
bd
As of 31 December 2019
a. (i) Disclosure regarding outstanding Repo as on 31 December 2019
Amount
SL No Counter party name Agreement Date Reversal Date (Ist leg cash
ka

consideration)
1 Janata Bank Limited 12/26/2019 1/2/2020 1,328,993,176
2 Janata Bank Limited 12/29/2019 1/5/2020 1,027,775,436
3 AB Bank Limited 12/29/2019 1/1/2020 502,364,740
n

4 Janata Bank Limited 12/30/2019 1/1/2020 1,102,935,235

5 AB Bank Limited 12/30/2019 1/1/2020 716,042,083
la

Total 4,678,110,670
a. (ii) Disclosure regarding outstanding Reverse Repo as on 31 December 2019
Amount
SL No Counter party name Agreement Date Reversal Date (Ist leg cash
consideration)
Nil
Total -
b. Disclosure regarding overall transaction of outstanding Repo and Reverse repo
Minimum Maximum Daily average
SL No Counter party name outstanding outstanding outstanding during
during the year during the year the year
Securities Sold Under repo:
i. With Bangladesh Bank 675,958,310 204,448,248 7,249,613
ii With Other Bank & FIs 3,329,822,135 194,606,600 307,019,207
Securities purchased under reverse repo
i. From Bangladesh Bank
ii from Other Bank & FIs 304,693,041 304,693,041 834,775

94
 Annexure-E
NRB COMMERCIAL BANK LIMITED
Investment in Share Portfolio, Preference Share and Bonds
As at 31 December 2019
a. Quoted shares & MFs:
SL Industry Types Market Value Cost Value (Tk.)
(Tk.)
1 Banks 359,113,874 398,130,038
2 NBFIs 48,821,930 59,575,407
3 Engeering 101,121,884 156,181,205
4 Textiles 16,516,232 24,906,348
5 Fuel & Power 44,889,067 60,704,215
6 Pharmaceuticals & Chemicals 28,197,037 39,759,332
7 Mutual Fund 20,000,000 20,000,000
Total 618,660,024 759,256,546
c. Investment in Preference Share:
Financial Intt. Rate/ Maturity Amount
SL Issuer Name Tenure Major Feature
Product Divi. Date (Taka)
Regent Power Regent Power
1 6 Years 13.00% 11-May-20 30,697,674 Preference Share with having tax Rebate

m
Limited Preference Share
Total 30,697,674
d. Investment in Bonds:

SL

1
Issuer Name

Mercantile Bank
Financial
Product
Mercantile Bank
Tenure

7 Years
Intt. Rate/
Divi.
Floating
co
Maturity
Date
29-Jun-21
Amount
(Taka)
Major Feature

Subordinated Bond. Floating Rate bond

Limited Subordinated rate Ranging from 12% to 15% based on 6 month
.
Bond 180,000,000 average FDR rate plus 3% mark-up
bd
2 The Trust Bank Trust Bank 7 Years 12.50% 7-Sep-21 Subordinated Bond at Fixed Rate.
Limited Subordinated
Bond 60,000,000
3 AB Bank Limited AB Bank 7 Years Floating 26-Aug-21 Subordinated Bond. Floating Rate bond
Subordinated rate Ranging from 9.82% to 12.82%. based on
ka

Bond 5 year Govt. Treasury Bond Rate plus 3%

40,000,000 markup
4 United Commercial UCBL 7 years Floating 29-Jul-22 Subordinated Bond having Floating Rateof
Bank Limited Subordinated rate Govt bond Ranging from 10%to 13.50% based
n

Bond on 6 month average FDR rate of schedule

60,000,000 Bank Plus 2.5% mark-up
la

5 Mutual Trust Bank MTB 7 years Floating 20-Oct-22 Subordinated Bond having Floating Rate of
Limited Subordinated rate Govt bond Ranging from 10.50%to 13.50%
Bond based on 6 month average FDR rate of
120,000,000 schedule Bank Plus 2.5% mark-up
6 AB Bank Limited 2nd AB Bank 7 years Floating 29-Sep-22 Subordinated Bond having Floating Rate of
Subordinated rate Govt bond Ranging from 10.50%to 13.50%
Bond based on 6 month average FDR rate of
180,000,000 schedule Bank Plus 2.5% margin
7 One Bank One Bank 7 years Floating 5-May-26 Ranging From 7% to 9% based on 6
Subordinated rate month average FDR rate of schedule Bank
Bond-iii 500,000,000 Plus 2.0% markup
8 IPDC Finance IPDC Finance 6 years Floating 31-Jul-25 7.96%+3%=10.96% Ranging From 7.50% to
Subordinated rate 11% based on 6 month average FDR rate of
Bond 150,000,000 schedule Bank Plus 3.0% markup.
9 United Commercial UCBL 7 years Floating 5-Dec-26 Coupon Range 7%-10.50%.Based on 6 month
Bank Limited Subordinated rate average FDR rate of schedule Bank Plus 2.0%
Bond-iv 500,000,000 markup.
Total 1,790,000,000

95
 Annexure-F
NRB COMMERCIAL BANK LIMITED
Refinance Terms & Payment on maturity
As of 31 December 2019
A. Refinance from Bangladesh Bank under Refinance Scheme
No. of Refinance
SL Refinance Scheme Branch Name Tenure Intt. Rate Maturity Date Amount (Taka)
Facilities
1 Women Entrepreneur Principal Branch 1 01 Year 5.00% 12/22/2020 800,000
2 Agri Mawna Branch 1 05 Years 5.00% 1/1/2023 3,500,000
3 Small & Medium Enterprise Uttara Branch 1 05 Years 5.00% 1/22/2020 312,500
4 Women Entrepreneur Boardbazar Branch 1 01 Year 5.00% 1/30/2020 3,000,000
5 Women Entrepreneur Mugrapara Branch 1 05 Years 5.00% 11/16/2021 240,000
6 Women Entrepreneur Sylhet Branch 1 01 Year 5.00% 4/10/2023 350,000
7 Women Entrepreneur Barisal Branch 1 05 Years 5.00% 9/23/2020 1,250,000
8 Effluent Treatment Plant Chatkhil Branch 1 05 Years 5.00% 12/21/2019 454,545
9 Women Entrepreneur Bhulta Branch 2 01 Year 5.00% 1/4/2023 325,000
Total 10,232,045
B. Refinance from Bangladesh Bank according Product wise
No. of Refinance
SL Refinance Scheme Branch Name Tenure Intt. Rate Maturity Date Amount (Taka)
Facilities

m
1 Small & Medium Enterprise Uttara Branch 1 05 Years 5% 1/22/2020 312,500
Sub-Total 312,500
1 Women Entrepreneur Principal Branch 6 01 Year 5% 12/22/2020 800,000
2 Women Entrepreneur Boardbazar Branch 03 Years 5% 1/30/2020 3,000,000
3
4
5
Women Entrepreneur
Women Entrepreneur
Women Entrepreneur
Mugrapara Branch
Sylhet Branch
Sylhet Branch
co 05 Years
05 Year
05 Year
5%
5%
5%
11/16/2021
4/10/2023
9/23/2020
240,000
350,000
1,250,000
6 Women Entrepreneur Barisal Branch 05 Year 5% 1/4/2023 325,000
.
Sub-Total 5,965,000
bd
1 Effluent Treatment Plant Chatkhil Branch 1 05 Years 5% 21-Dec-23 454,545
Sub-Total 454,545

1 Agri Mawna Branch 1 05 Years 5% 21-Dec-23 3,500,000

ka

Sub-Total 3,500,000
Grand Total 10,232,045
n
la

96
 Annexure-G

NRB Commercial Bank Limited

Schedule of Property, Plant & Equipment (Accounting Purpose)
As at 31 December 2019

Sl Properties & Assets Assets Depreciation Book Value

NO. Opeing Balance Addition Disposal Closing Balance Rate of Opeing Addition during Disposal Closing
during the during the Depreciation Balance the year during the Balance
year year year
1 Land, Building and Construction - - - - 2.50% - - - - -
2 Furniture and fixtures 328,694,024 79,204,454 - 407,898,478 10.00% 99,288,992 36,971,030 - 136,260,022 271,638,456
3 Equipment and Machinery 315,225,583 69,805,433 - 385,031,016 20.00% 187,058,365 62,578,141 - 249,636,506 135,394,510
4 Computer and Computer Equipment 172,281,965 18,448,136 - 190,730,101 20.00% 144,610,236 12,323,573 - 156,933,808 33,796,293
5 Intangible Assets/Bangladesh Made
la
Computer Software 157,026,657 7,573,308 - 164,599,965 20.00% 89,049,991 25,640,446 - 114,690,437 49,909,528
6 Motor Vehicles 46,850,000
n - - 46,850,000 20.00% 25,219,163 6,153,332 - 31,372,495 15,477,505
7 Professionals and Reference Books 23,370 - - 23,370 20.00% 21,705 1,661 - 23,365 5
8 Leased Assets: Motor Vehicle 27,106,624 - (6,776,000) 20,330,624 20.00% 27,106,618 - (6,775,999) 20,330,619 5
Total 1,047,208,223 175,031,331 (6,776,000) 1,215,463,553 572,355,069 143,668,182 (6,775,999) 709,247,252 506,216,302
ka
Annexure-H
bd
Schedule of Property, Plant & Equipment (Tax Purpose)
.
As at 31 December 2019

Sl Properties & Assets Assets Depreciation/Amortization Book Value

co
NO. Opeing Addition during Disposal during Closing Rate of Opeing Addition during Disposal during Closing
Balance the year the year Balance Depreciation Balance the year the year Balance
1 Land, Building and Construction - - - 2.50% - - - -
2 Furniture and fixtures 328,694,024 79,204,454 407,898,481
m
10.00% 99,816,742 30,808,174 130,624,916 277,273,565
3 Office Equipment and Machinery 315,225,583 69,805,433 - 385,031,016 10.00% 99,213,514 28,581,750 - 127,795,264 257,235,751
4 Computer and Computer Equipment 172,281,965 18,448,136 190,730,101 30.00% 135,398,276 16,599,548 151,997,823 38,732,278
5 Intangible/Bangladesh Made
Computer Software 157,026,657 7,573,308 164,599,965 50.00% 132,597,354 16,001,305 148,598,660 16,001,305
6 Motor Vehicles 46,850,000 - 46,850,000 20.00% 21,502,075 5,069,585 26,571,660 20,278,340
7 Professionals and Reference Books 23,370 - 23,370 30.00% 19,442 1,178 20,621 2,749
8 Leased Assets: Motor Vehicle 27,106,624 - (6,776,000) 20,330,624 20.00% 18,716,514 322,822 4,678,676 14,360,661 1,291,288
Total 1,047,208,223 175,031,331 (6,776,000) 1,215,463,556 507,263,918 97,384,362 4,678,676 599,969,604 610,815,276

97
 Annexure-I (A)

NRB Commercial Bank Limited

Detailed of Risk Weighted Assets on Solo Basis under Basel III as at 31 December 2019

2019 2018
Risk Weighted Assets (RWA) for Risk Weighted Risk Weighted
Exposure Exposure
Asset Asset
A. Credit Risk 88,029,367,272 59,165,169,704 67,017,669,584 46,026,899,504
On- Balance Sheet (as shown below) 79,489,390,479 50,910,512,492 61,574,341,338 40,929,881,189
Off-Balance Sheet (as shown below) 8,539,976,793 8,254,657,212 5,443,328,246 5,097,018,315
B. Market Risk 2,354,530,686 1,902,043,763
C. Operational Risk 4,942,498,478 4,507,604,674
Total: RWA (A+B+C) 88,029,367,272 66,462,198,868 67,017,669,584 52,436,547,941
Credit Risk - On Balance Sheet Items
2019
SL Exposure Type Risk Weighted
Exposure Rating Risk Weigh
Asset
a Cash and Cash Equivalents 1,797,747,991 0% -
b Claims on Bangladesh Government and Bangladesh Bank 13,281,921,296 0% -
c Claims on other Sovereigns & Central Banks* - 50% -
d Claims on Bank for International Settlements, International - 0% -

m
Monetary Fund and European Central Bank
e Claims on Multilateral Development Banks (MDBs): - 0% -
i. IBRD,IFC,ADB,AFDB,EBRD,IADB,EIB,EIF,NIB,CDB,IDB,CEDB -
ii. Others MDBs
. co -
-
-
-
1
2,3
4,5
6
20%
50%
100%
150%
-
-
-
-
- Unrated 50% -
bd
f Claims on Public Sector Entities (other than Government) in - 1 20% -
Bangladesh - 2,3 50% -
- 4,5 100% -
- 6 150% -
- Unrated 50% -
ka

g Claims on Banks and Non-bank Financial Institution (NBFI): -

i) Original maturity over 3 months 679,099,335 1 20% 135,819,866.97
320,108,576 2, 3 50% 160,054,287.87
19,227,246 4, 5 100% 19,227,245.79
n

- 6 150% -
379,032,688 Unrated 100% 379,032,687.56
la

ii) Original Maturity Up to 3 months 2,636,263,815 20% 527,252,762.91

h Claims on Corporate (excluding equity exposure) 3,744,319,789 1 20% 748,863,957.84
5,816,103,153 2 50% 2,908,051,576.49
9,927,819,598 3, 4 100% 9,927,819,598.17
- 5, 6 150% -
9,311,001,033 Unrated 125% 11,638,751,291.14
i Claim on SME - SME 1 20% -
99,899,120 SME 2 40% 39,959,647.86
5,440,884,908 SME 3 60% 3,264,530,944.71
1,299,167,771 SME 4 80% 1,039,334,216.51
34,353,458 SME 5 120% 41,224,149.05
24,626,454 SME 6 150% 36,939,681.21
1,973,077,257 Unrated (Small 75% 1,479,807,942.62
Enterprise &
<BDT 3.00m)
7,149,962,267 Unrated (Small 100% 7,149,962,267.07
enterprise
having ≥
BDT 3.00m
& medium
enterprise)

98
 2019
SL Exposure Type Risk Weighted
Exposure Rating Risk Weigh
Asset
j Claims under Credit Risk Mitigation - PSE -
96,567,417 Banks & NBFIs -
2,818,662,636 Corporate 936,405,907
2,176,030,986 Retail & Small 71,404,649
387,731,155 SME 311,253,939
3,141,446 Consumer -
Finance
11,654,513 Residential -
property
3,925,371 Commercial 3,547,468
Real State
k Claim categories as retail portfolio (Excluding SME, Consumer 2,025,706,278 75% 1,519,279,708.41
Finance & Staff loan) Upto 1 Crore
l Consumer Loan 899,148,624 100% 899,148,623.96
m Claims fully secured by residential property 964,726,829 50% 482,363,414.52
n Claims fully secured by commercial real estate 1,619,479,728 100% 1,619,479,727.83
o 1. Past Due Claims (Risk weights are to be assigned net of - -
specific provision):
Where Specific provisions are less than 20 percent of the 2,657,068,146 150% 3,985,602,218.96

m
outstanding amount of the past due claim
Where Specific provisions are no less than 20 percent of the 28,442,963 100% 28,442,962.85
outstanding amount of the past due claim
Where Specific provisions are more than 50 percent of the
outstanding amount of the past due claim
2. Claims fully secured against residential property that are
past due for more than 60 days and/or impaired specific
co3,176,734

3,970,501
50%

100%
1,588,366.80

3,970,500.52

provision held there-against is less than 20 percent of

.
outstanding amount
bd
3. Loans & Claims fully secured against residential property - 75% -
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 93,872,646 125% 117,340,807.56
ka

q Investment in Equity and Regulatory Capital Instruments 393,477,641 125% 491,847,051.00

issued by other banks and Mercahant Bank/Brokerage Houses/
Exchange Houses which are not listed in Stock Exchange (other
than those deducted from capital) held in banking book
n

r Investments in Venture Capital - 150% -

s Investments in premises, plant and equipment and all other 506,216,302 100% 506,216,301.64
la

fixed assets
t Claims on all fixed assets under operating lease - 100% -
u All other Assets -
i. Claims on GoB & BB - 0% -
ii. Staff Loan/Investment 532,232,616 20% 106,446,523.21
iii. Cash Item in process of Collection - 20% -
iv. Claim on Offshore Banking Unit (OBU) - 100% -
v. Other Assets (Not specified above) ( Net of Specific 329,542,197 100% 329,542,197.18
Provision, If any)
Total 79,489,390,479 50,910,512,492

Credit Risk - Off Balance Sheet Items

2019
SL Exposure Type Risk Weighted
Exposure
Asset
a Claims on Bangladesh Government (Other than PSEs) and - 0% -
Bangladesh Bank
b Claims on other Sovereigns & Central Banks* -
c Claims on Bank for International Settlements, International - 0% -
Monetary Fund and European Central Bank

99
 2019
SL Exposure Type Risk Weighted
Exposure
Asset
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% -
e Claims on Public Sector Entities (other than Government) in - 1 20% -
Bangladesh - 2, 3 50% -
- 4, 5 100% -
- 6 150% -
- Unrated 50% -
f Claims on Banks and NBFIs:
i) Maturity over 3 months - 1 20% -
- 2, 3 50% -
- 4, 5 100% -
- 6 150% -
- Unrated 100% -
ii) Maturity less than 3 months - 20%

m
g Claims on Corporate 338,056,828 1 20% 67,611,366
820,429,019 2 50% 410,214,509
1,568,152,686 3, 4 100% 1,568,152,686

h Claims against retail portfolio (excluding SME & consumer loan)

co -
3,207,968,644
59,967,471
5, 6
Unrated
150%
125%
75%
-
4,009,960,805
44,975,603
i Claim On SME - SME 1 20% -
.
- SME 2 40% -
bd
543,700,369 SME 3 60% 326,220,221
23,030,040 SME 4 80% 18,424,032
- SME 5 120% -
- SME 6 150% -
ka

678,294,985 Unrated (Small 75% 508,721,239

Enterprise &
<BDT 3.00m)
1,300,376,751 Unrated (Small 100% 1,300,376,751
enterprise
n

having ≥
BDT 3.00m
la

& medium
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 8,539,976,793 8,254,657,212

100
 Annexure-I(B)

NRB Commercial Bank Limited

Detailed of Risk Weighted Assets on Consolidated basis under Basel III as at 31 December 2019

2019 2018
Risk Weighted Assets (RWA) for Risk Weighted Risk Weighted
Exposure Exposure
Asset Asset
A. Credit Risk 88,655,319,185 59,779,724,443 67,050,548,210 45,983,921,314
On- Balance Sheet (as shown below) 80,115,342,392 51,525,067,231 61,607,219,964 40,886,902,999
Off-Balance Sheet (as shown below) 8,539,976,793 8,254,657,212 5,443,328,246 5,097,018,315
B. Market Risk 2,455,514,214 2,046,819,473
C. Operational Risk 4,962,939,436 4,534,555,423
Total: RWA (A+B+C) 88,655,319,185 67,198,178,093 67,050,548,210 52,565,296,210
Credit Risk - On Balance Sheet Items
2019
SL Exposure Type Risk Weighted
Exposure Rating Risk Weigh
Asset
a Cash and Cash Equivalents 1,842,555,955 0% -
b Claims on Bangladesh Government and Bangladesh Bank 13,281,921,296 0% -
c Claims on other Sovereigns & Central Banks* - 50% -
d Claims on Bank for International Settlements, International - 0% -

m
Monetary Fund and European Central Bank
e Claims on Multilateral Development Banks (MDBs): - 0% -
i. IBRD,IFC,ADB,AFDB,EBRD,IADB,EIB,EIF,NIB,CDB,IDB,CEDB
ii. Others MDBs
. co -
-
-
-
1
2,3
4,5
6
20%
50%
100%
150%
- Unrated 50%
f Claims on Public Sector Entities (other than Government) in - 1 20%
bd
Bangladesh - 2,3 50%
- 4,5 100%
- 6 150%
- Unrated 50%
ka

g Claims on Banks and Non-bank Financial Institution (NBFI):

i) Original maturity over 3 months 679,099,335 1 20% 135,819,867
320,108,576 2, 3 50% 160,054,288
19,227,246 4, 5 100% 19,227,246
n

- 6 150% -
379,032,688 Unrated 100% 379,032,688
la

ii) Original Maturity Up to 3 months 2,642,122,739 20% 528,424,548

h Claims on Corporate (excluding equity exposure) 3,744,319,789 1 20% 748,863,958
5,816,103,153 2 50% 2,908,051,576
9,927,819,598 3, 4 100% 9,927,819,598
- 5, 6 150% -
9,757,305,419 Unrated 125% 12,196,631,774
i Claim on SME - SME 1 20% -
99,899,120 SME 2 40% 39,959,648
5,476,899,012 SME 3 60% 3,286,139,407
1,299,167,771 SME 4 80% 1,039,334,217
34,353,458 SME 5 120% 41,224,149
24,626,454 SME 6 150% 36,939,681
1,973,077,257 Unrated (Small 75% 1,479,807,943
Enterprise &
<BDT 3.00m)
7,317,085,316 Unrated (Small 100% 7,317,085,316
enterprise
having ≥
BDT 3.00m
& medium
enterprise)

101
 2019
SL Exposure Type Risk Weighted
Exposure Rating Risk Weigh
Asset
j Claims under Credit Risk Mitigation - PSE -
96,567,417 Banks & NBFIs -
2,818,662,636 Corporate 936,405,907
2,176,030,986 Retail & Small 71,404,649
387,731,155 SME 311,253,939
3,141,446 Consumer -
Finance
11,654,513 Residential -
property
3,925,371 Commercial 3,547,468
Real State
k Claim categories as retail portfolio (Excluding SME, Consumer 2,065,930,206 75% 1,549,447,655
Finance & Staff loan) Upto 1 Crore
l Consumer Loan 899,148,624 100% 899,148,624
m Claims fully secured by residential property 964,726,829 50% 482,363,415
n Claims fully secured by commercial real estate 1,619,479,728 100% 1,619,479,728
o 1. Past Due Claims (Risk weights are to be assigned net of
specific provision):
Where Specific provisions are less than 20 percent of the 2,603,999,047 150% 3,905,998,571
outstanding amount of the past due claim

m
Where Specific provisions are no less than 20 percent of the 10,589,256 100% 10,589,256
outstanding amount of the past due claim
Where Specific provisions are more than 50 percent of the 3,176,734 50% 1,588,367
outstanding amount of the past due claim
2. Claims fully secured against residential 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
co 3,970,501 100% 3,970,501

amount
.
3. Loans & Claims fully secured against residential property - 75% -
bd
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 106,823,988 125% 133,529,985
ka

q Investment in Equity and Regulatory Capital Instruments 290,598,324 125% 363,247,905

issued by other banks and Mercahant Bank/Brokerage 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 - 150% -
n

s Investments in premises, plant and equipment and all other 513,295,067 100% 513,295,067
fixed assets
la

t Claims on all fixed assets under operating lease - 100% -

u All other Assets
i. Claims on GoB & BB - 0% -
ii. Staff Loan/Investment 532,232,616 20% 106,446,523
iii. Cash Item in process of Collection - 20% -
iv. Claim on Offshore Banking Unit (OBU) - 100% -
v. Other Assets (Not specified above) ( Net of Specific Provision, 368,933,769 100% 368,933,769
If any)
Total 80,115,342,392 51,525,067,231

Credit Risk - Off Balance Sheet items

2019
SL Exposure Type Risk Weighted
Exposure
Asset
a Claims on Bangladesh Government (Other than PSEs) and - 0% -
Bangladesh Bank
b Claims on other Sovereigns & Central Banks* -
c Claims on Bank for International Settlements, International - 0% -
Monetary Fund and European Central Bank

102
 2019
SL Exposure Type Risk Weighted
Exposure
Asset
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% -
e Claims on Public Sector Entities (other than Government) in - 1 20% -
Bangladesh - 2, 3 50% -
- 4, 5 100% -
- 6 150% -
- Unrated 50% -
f Claims on Banks and NBFIs:
i) Maturity over 3 months - 1 20% -
- 2, 3 50% -
- 4, 5 100% -
- 6 150% -
- Unrated 100% -
ii) Maturity less than 3 months - 20%

m
g Claims on Corporate 338,056,828 1 20% 67,611,366
820,429,019 2 50% 410,214,509
1,568,152,686 3, 4 100% 1,568,152,686

h Claims against retail portfolio (excluding SME & consumer loan)

co -
3,207,968,644
59,967,471
5, 6
Unrated
150%
125%
75%
-
4,009,960,805
44,975,603
i Claim On SME - SME 1 20% -
.
- SME 2 40% -
bd
543,700,369 SME 3 60% 326,220,221
23,030,040 SME 4 80% 18,424,032
- SME 5 120% -
- SME 6 150% -
ka

678,294,985 Unrated (Small 75% 508,721,239

Enterprise &
<BDT 3.00m)
1,300,376,751 Unrated (Small 100% 1,300,376,751
enterprise
n

having ≥
BDT 3.00m
la

& medium
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 8,539,976,793 8,254,657,212

103
 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

Percentage
of
Name of the firms/companies in which
Status with Status as in Holding/
Sl Name of Director Experience interested as Proprietor, Partner, Director,
Bank Column E Interest
Managing Agent, Guarantor, Employee, etc.
in the
concern
A B C D E F G
1 Mr. S M Parvez Tamal Chairman 22 Years a. OY STN Electronics Ltd., Nokkalanniemi 1C, a. CEO and a. 100%
02230 Espoo, Finland. President
b. System Invest Trekhprudnaya, 11/13, Off 25, b. Director b. 95%
Moscow, Russia.
c. R & M , Kurtskaya, Moscow, Russia c. Owner c. 63%
d. Telexia Oy, Finland d. Board Member d. 33%
e. Makia Fashion Clothing, Finland e. Share holder e. 05%
f. Bangla Grow Agro Ltd. Damarpara, f. Shareholder f. 20%

m
Jamgram, Kahaloo, Bogura, Bangladesh
g. Turuntie 40 Oy, Finland g. Share holder g. 15%
2 Mr. Mohammad Shahid Islam, Vice 23 Years Marafie Kuwaitia Group, Al Mawash Tower, Floor CEO and Partner 49%

3
MP

Mr. Mohammed Adnan Imam,

FCCA
Chairman

Director 17 Years
co
2, Office 1, Abdul Aziz Hamed Al Saqer Street,
Murgab Kuwait city , State of Kuwait
a. IPE Group (Holdings) Limited
73, New Bond Street, Mayfair, London, W1S
a. Managing
Director
a. 100%

1RS, UK.
.
b. IPE Ventures Limited b. Shareholder b. 100%
bd
73, New Bond Street, Mayfair, London, W1S
1RS, UK.
c. Genex Infosys Ltd. c. Managing b. 10%
House # 9, Road-25/A, Block-A, Banani, Director
Dhaka-1213, Bangladesh.
ka

d. Green & Red Technologies Limited d. . Chairman & d.1%

House # 9, Road-25/A, Block-A, Banani, Representative
Dhaka-1213, Bangladesh. Director of Genex
Infosys Limited
n

e. Brainstation-23 Limited e.Representative e. 10%

Plot 2 (8th Floor), Bir Uttam AK Khandaker Director of Oracle
Road, Mohakhali C/A, Dhaka-1212 Services Limited
la

f. Denim Asia Limited f. Director f. 21%

117/A, Tejgaon Industrial Area, Dhaka-1208
g. AWR Developments (BD) Limited. g. Managing g. 98%
House # 9, Road-25/A, Block-A, Banani, Director
Dhaka-1213, Bangladesh.
h. AWR Real Estate Limited, h. Managing h. 50%
House # 9, Road-25/A, Block-A, Banani, Director
Dhaka-1213, Bangladesh.
i. IPE Capital Limited i. Chairman i. 45%
House # 9, Road-25/A, Block-A, Banani,
Dhaka-1213, Bangladesh
j. Oracle Services Ltd. j. Managing j. 50%
House # 9, Road-25/A, Block-A, Banani, Director
Dhaka-1213, Bangladesh.
k. Cogent Bangladesh Limited k. Managing k. 5%
House # 9, Road-25/A, Block-A, Banani, Director
Dhaka-1213, Bangladesh.
l. Adverto Footwear Limited l. Representative l. 15%
House # 9, Road-25/A, Block-A, Banani, Director of Oracle
Dhaka-1213, Bangladesh. Services Limited
m. Socian Limited m. Representative m. 5.43%
House – 28, Road – 20, Block-K, Banani, Director of Oracle
Dhaka. Services Limited
104
 Percentage
of
Name of the firms/companies in which
Status with Status as in Holding/
Sl Name of Director Experience interested as Proprietor, Partner, Director,
Bank Column E Interest
Managing Agent, Guarantor, Employee, etc.
in the
concern
A B C D E F G
4 Mr. Rafikul Islam Mia Arzoo Director 26 Years a. Bonanza, 2nd Magietralnaya 14 G, Moscow, a. President a. 80%
Russia.
b. Mela, 2nd Magietralnaya 14 G, Moscow, b. MD b. 89.5%
Russia.
c. Lisichka, St. Bibirovskaya 2/1, Moscow, c. Director c. 67%
Russia.
d. JSC Bibirevo, St. Bibirobskaya 2/1 d. Director d. 94%
Moscow, Russia
5 Mr. A M Saidur Rahman Director 15 Years a. Saidur Rahman Foundation a. Chairman
b. Pandemic Fisheries Ltd. b. Chairman B.25%
c. Royal Denim c. Chairman
6 Mr. Mohammed Oliur Rahman Director 27 Years a. Al Haramain Trading LLC, PO Box: 13754, a. Director a. 24%
Dubai, UAE.
b. Al Haramain Perfumes MFG & Oudh b. Shareholder b.20%
Processing Industry LLC, PO Box: 1885,
Ajman, UAE.

m
c. Al Haramain Perfumes LLC, Dubai, UAE. c. Shareholder c.30%
d. Best in Fragrance, Hilton tower, Gate#3, d. Shareholder d.30%
Shops#6-7, PO Box: 18083, Holy Makkah,
Kingdom of Saudi Arabia
. f.
co
e. Noor Al Haramain LLC, PO Box: 13754,
Dubai, UAE.
Al Haramain Hospital Pvt. Ltd., Kazi Tower,
Samata-10, Bishwa Road, Chali Bandar,
e. Shareholder

f. Vice Chairman
e. 24%

Subhani Ghat, Sylhet-3100, Bangladesh.

bd
7 Mr. Abu Bakr Chowdhury Director 16 Years a. Baizid Steel Industries Ltd., Rahima a. MD a) 59.50%
Center, 4th Floor, 1618/1839 CDA Avenue,
Nasirabad, Chittagong.
b. CSS Corporation (BD) Ltd., Rahima b. MD b. 40%
Center, 4th Floor, 1618/1839 CDA Avenue,
ka

Nasirabad, Chittagong.
c. CSS Power Ltd., Rahima Center, 4th Floor, c. MD c. 80%
1618/1839 CDA Avenue, Nasirabad,
Chittagong.
d. ABC Marks Holdings Ltd., Rahima Center, d. MD d. 50%
n

4th Floor, 1618/1839 CDA Avenue,

Nasirabad, Chittagong.
la

e. ATN News Ltd., Hassan Plaza, 53 Kawran e. Shareholder e. 10%

Bazar, Dhaka-1215.
f. ABC Associates Ltd., Rahima Center, 4th f. MD g. 2.50%
Floor, 1618/1839 CDA Avenue, Nasirabad,
Chittagong.
8 Mr. Loquit Ullah Director 35 Years Store Alamin SNC, Via Principe Amedia, 134- Managing 100%
136, Rome, Italy. Director
9 Mr. Mohammed Nazim Director 16 Years a. Al Majal Car Wash and Maint, Al Maliha a. MD a. 50%
Street, Industrial Area,-10, Near Gico, PO:
29037, Sharjah, UAE.
b. Al Badar Car Washing Station, New I/A, PO b. MD b. 100%
Box-1267, Ajman, UAE.
c. Dar Al Madina Washing Station, Jouraf I/A-1, c. MD c. 100%
Near China Mall, Ajman, UAE.
d. Dar Al Salam Car Washing Station, Ajman, d. MD d. 100%
UAE.
e. Al Ardh Al Thahabiah Trucks & Heavy e. MD e. 50%
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
10 Dr. Nuran Nabi Director 12 Years Plainsboro Township, New Jersey, USA Councilman None.
105
 Percentage
of
Name of the firms/companies in which
Status with Status as in Holding/
Sl Name of Director Experience interested as Proprietor, Partner, Director,
Bank Column E Interest
Managing Agent, Guarantor, Employee, etc.
in the
concern
A B C D E F G
11 Mr. Mohammed Manzurul Director 18 Years a. ATN News Ltd., Hasan Plaza, 53, Kawran a. Director a. 20%
Islam Bazar, Dhaka.
b. iPay Systems Limited, b. Director a. 5%
52 Gulshan Avenue, Dhaka-1212
c. Dhaka Bangla Channel (DBC) News, Ahsan c. Director & CEO c. 10%
Tower, 76 Bir Uttam A.K Khandakar Sarak,
Dhaka, Bangladesh
d. NRBC Bank Securities Limited, 114 Motijheel c. Sponsor- c. 0.05%
C/A, Dhaka Shareholder
12 Mr. AKM Mostafizur Rahman Director 22 Years a. Pandamic Trade International a. Managing a. 100%
Director
b. Pandamic Agro Fisheries b. Managing a. 100%
Director
c. Richway Ltd. c. Chairman c. 25%
d. Imperial Maisara International FZC d. Director d. 70%
e. NAVA IT Management & Consultancy e. Managing e. 50%
Director

m
f. Royal Denim Ltd. f. Vice Chairman f. 15%
g. Meghna Bank Ltd. g. Sponsor- g. 0.79%
Shareholder
h. co
EZY Fintech Ltd.

ii. Significant contracts were executed where the Bank is a party and wherein Directors have interest: Nil
. h. Chairman h. 25%

iii. Shares to the Directors and Executives without consideration or exercisable at discount: Nil
bd

iv. Related Party relationship and transaction: No Related transaction occuured during the period

v. Lending policies for granting loan to the Related Party : Related parties are allowed Loans and Advances as per General Loan Policy of the Bank.
ka

vi. Business other than Banking business with any related concern of the Directors as per section -18 (2) of the Banking Companies Act, 1991: Nil

vii. Investments in the Security of Directors and their related concerns: Nil
n
la

106
 m
. co
bd
ka

Auditors’ Report along with

n

Audited Financial Statements to

la

the Shareholders of
NRBCB Securities Limited

107
 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., which comprise the Statement of Fi-
nancial Position as at December31, 2019, and the Statement of Profit or Loss and Other Comprehensive Income,
Statement of Changes in Equity and the Statement of Cash Flows for the year 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 finan-
cial position of the Company as at December31, 2019, and of its financial performance and its cash flows for the
year then ended in accordance with International Financial Reporting Standards (IFRSs), the Companies Act 1994
and other applicable laws and regulations.

Basis for Opinion

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 sec-

m
tion 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) together with ethical requirement that
are relevant to our audit of the financial statements in Bangladesh, and we have fulfilled our other ethical respon-

and appropriate to provide a basis for our opinion. co

sibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient

Responsibilities of Management and Those Charged with Governance for the Financial Statements and
.
Internal Controls
bd
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
International Financial Reporting Standards (IFRSs), and for such internal control as management determines is nec-
essary to enable the preparation of financial statements that are free from material misstatement, whether due to
ka

fraud or error. The Companies Act, 1994 require the management to ensure effective internal audit, internal control
and risk management functions of the company.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue
n

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 Company or to cease operations, or has no realistic
la

alternative but to do so.

Those charged with governance are responsible for overseeing the financial reporting process.

Auditors’ 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 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 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 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 misstate-
ment resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,

108
 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 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 Company’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclo-
sures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our con-
clusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclo-
sures, and whether the financial statements represent the underlying transactions and events in a manner
that achieves fair presentation.

Report on other Legal and Regulatory Requirements

m
In accordance with the Companies Act 1994, we also report the following:

(a) we have obtained all the information and explanations which to the best of our knowledge and belief were nec-
co
essary for the purposes of our audit and made due verification thereof;

(b) in our opinion, proper books of account as required by law have been kept by the company so far as it appeared
from our examination of those books;
.
(c) the statement of financial position and statement of comprehensive income dealt with by the report are in agree-
bd
ment with the books of account and returns;
n ka

-SD-
Dated, Dhaka Hoque Bhattacharjee Das & Co.
la

26 February, 2020
Chartered Accountants

109
 NRBC Bank Securities Limited
Statement of Financial Position
As at December 31, 2019

At Dec 31, 2019 At Dec 31, 2018

Properties & Assets Notes
Taka Taka

Non Current Assets:

Property, Plant & Equipment 4 7,078,765 7,103,414

Investments :
Investment in Share & Stock 5 327,496,997 335,197,607

Loan and Advances :

Margin Loan 6 138,414,177 70,653,291

Current Assets:
Advances, Deposits, Prepayments, Receivables 7 40,675,850 21,644,979
Cash and Cash Equivalents 8 149,887,320 82,969,128
190,563,170 104,614,106
Total Assets 663,553,109 517,568,418

m
Shareholders’ Equity: 412,009,932 406,704,090
Share Capital 9 400,000,000 400,000,000
Retained Earnings

Current Liabilities
Other Liabilities
. co 10

11
12,009,932

251,543,177
157,670,531
6,704,090

110,864,328
74,308,082
Overdraft NRBC Bank Ltd 12 93,872,646 36,556,246
bd
Total Equity and Liabilities 663,553,109 517,568,417

The annexed notes form an integral part of the Financial Statements.

ka

-SD- -SD- -SD-

Chief Executive Officer Director Chairman
n

Signed as per annexed report on even date

-SD-
Haque Bhattacharjee Das & Co.
la

Place: Dhaka
Date:February 26, 2020 Chartered Accountants

110
 NRBC Bank Securities Limited
Statement of Profit or Loss and Other Comprehensive Income
For the period ended December 31, 2019

2019 2018
Particulars Notes
Taka Taka

Operating Income
Interest Income 14 14,301,949 10,200,726
Interest Expenses 15 1,144,755 251,326
Net Interest Income 13,157,194 9,949,400
Brokerage Commission 16 19,047,916 21,933,518
Investment Income 17 9,212,840 9,366,899
Other Operating Income/Loss 18 787,204 664,649
Total operating income 42,205,154 41,914,436
Operating Expenses
Salary & Allowances 19 16,244,099 16,773,112
Rent, Taxes, Insurance, Electricity, etc. 20 3,742,639 5,266,668
Legal/Professional/Preliminary Expenses 21 - 73,310
Stamp, Postage & Telecommunication etc. 22 1,105,752 910,362
Stationery, Printing, Advertisement, etc. 23 801,878 438,648

m
Board of Directors’ Meeting Expense 24 59,820 112,100
Audit Fee 57,500 46,000
Other Financial Expenses 25 115,688 68,097
Depreciation & Repair of Property, Plant & Equipment
Other Expenses
Total Operating Expenses
Profit/(Loss) before provision
. co 26
27
2,556,311
1,510,852
26,194,539
16,010,615
2,554,328
771,019
27,013,645
14,900,791
bd
Provision against Diminuation of Share 28 6,753,900 7,389,323
Total Provision 6,753,900 7,389,323
Profit/(Loss) before Taxation 9,256,715 7,511,468
Provision for Taxation 3,950,873 4,202,868
Current Tax 29 4,182,561 4,400,911
ka

Deferred Tax 30 (231,688) (198,043)

Profit/Loss after taxation 5,305,842 3,308,600
Other Comprehensive Income - -
Total Comprehensive Income/(loss) 5,305,842 3,308,600
n

Earnings Per Share (EPS) 31 0.13 0.08

la

The annexed notes form an integral part of the Financial Statements.

-SD- -SD- -SD-

Chief Executive Officer Director Chairman

Signed as per annexed report on even date

-SD-
Place: Dhaka Haque Bhattacharjee Das & Co.
Date:February 26, 2020 Chartered Accountants

111
 NRBC Bank Securities Limited
Statement of Cash Flows
As at December 31, 2019

At Dec 31, 2019 At Dec 31, 2018

Particulars
Taka Taka
A. Cash flows from operating activities
Cash received from :
Interest income 14,301,949 10,200,726
Investment Income 9,212,840 9,366,898
Brokerage Commission Receipts 19,047,916 21,933,518
Receipts from Other operating activities 787,204 664,619
43,349,909 42,165,762
Cash payment to :
Interest expenses 1,144,755 251,326
Paid to the Employee 16,141,139 16,410,723
Legal/Preliminary Expense - 73,310
Audit Fees 46,000 50,000
Payments to suppliers/Service providers 9,250,088 4,040,523
Paid for Other Operating Activities 2,022,176 487,998
28,604,157 21,313,880

m
Operating profit before changes in operating assets & liabilities 14,745,752 20,851,881
Increased/decreased in operating assets and liabilities
Increased/(Decreased) of Deposit from client against Share purchased 76,141,963 29,106,028
Increased/(Decreased) of Deposit from client against IPO Fund
(Receivable)/payable to Parents Company
(Increased) / Decreased in Operating Assets
co 1,072
-
76,143,035
-
-
29,106,028
Net cash from/(used in) operating activities (A) 90,888,787 49,957,909
.
bd
Cash used in Investing Activities
Purchase of Property, Plant and Equipment (2,195,847) (142,616)
Investment in Shares/Securities 7,700,610 33,810,889
Advances, deposits, prepayments, Receivables (19,030,871) (1,872,724)
ka

Loan and Advances (67,760,886) (30,886,543)

Net cash used in Investing Activities (B) (81,286,995) 909,006

Cash flows from Financing Activities

n

Share Capital - -
Loan From Parent Company (NRBC Bank Ltd)/OD facility 57,316,400 36,556,246
la

Dividend Paid - (20,000,000)

Net cash flows from financing activities (C) 57,316,400 16,556,246

Net Surplus/(Deficit) in Cash and Bank Balances for the year (A+B+C) 66,918,192 67,423,161
Cash and Bank Balance at beginning of the year 82,969,128 15,545,967
Cash & Bank Balance at the end of the year (*) 149,887,320 82,969,128
(*) Cash & Bank Balance:
Cash in Hand 44,807,964 30,069
Cash at Bank 105,079,356 82,939,059
149,887,320 82,969,128

The annexed notes form an integral part of the Financial Statements.

-SD- -SD- -SD-

Chief Executive Officer Director Chairman

Signed as per annexed report on even date -SD-

Place: Dhaka Haque Bhattacharjee Das & Co.
Date:February 26, 2020 Chartered Accountants

112
 NRBC Bank Securities Limited
Statement of Changes in Equity
As at December 31, 2019

Retained
Particulars Paid up capital Total
earnings
Opening Balance at January 01, 2019 400,000,000 6,704,090 406,704,090
Net Profit after Tax for the year - 5,305,842 5,130,845
Balance at December 31, 2019 400,000,000 12,009,932 411,834,935

Balance at Decmber 31, 2018 400,000,000 6,704,090 406,704,090

The annexed notes form an integral part of the Financial Statements.

-SD- -SD- -SD-

Chief Executive Officer Director Chairman

Signed as per annexed report on even date

m
-SD-
Place: Dhaka Haque Bhattacharjee Das & Co.
Date:February 26, 2020 Chartered Accountants
. co
bd
n ka
la

113
 NRBC Bank Securities Limited
Selective Notes to the Preparation of Financial Statements
For the period ended December 31, 2019

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 listing Rules of Dhaka Stock Exchange, Guidelines
from Bangladesh Bank, other applicable laws and regulations.

m
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 co

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 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.
bd

2.3 Going Concern Assessment

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
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b. Statement of Profit or Loss and Other Comprehensive Income

c. Statement of Cash Flows
la

d. Statement of Changes in Equity and

e. Notes to the Financial Statements

2.5 Statements of Cash flows

Statement of cash flows is prepared in accordance with the International Accounting Standard-7 “Statement of Cash Flows”.

2.6 Reporting period

These financial statements cover one calendar year from 1 January to 31 December.

2.7 Functional and presentational currency

The financial statements are presented in Bangladesh 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 IAS 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.

114
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).
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 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

m
no unrealized gain will be booked when market value exceeds cost.

3.5 Margin loan/Loan to customer

co
The Company extends margin loan to the portfolio investors at an agreed ratio (between investors deposit and loan 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. After initial recognition, prepayments
are carried at cost less charges to income statement.
ka

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,
n

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”
la

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.

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 Accounting Standard (IAS) 18 “Revenue Recognition”

115
3.13.1 Interest income
Income from margin loan/bank deposit are recognised 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

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 IAS - 10 “Events after the Reporting period”, events after the reporting period are those events, favorable and unfavorable, 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:
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).
There was no material events which have occurred after the reporting period which could affect the values stated in the financial statements
execpt note mention 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) 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

m
IAS 24 “Related Party Disclosures”. All transactions involving related parties arising in the normal course of business are conducted as arm’s
length transactions. Related parties disclosure given in the Note-33

3.16

3.17
Authorization of the financial statements for issue
co
The financial statements of the company have been authorized for issue by the Board of Directors on 26th February 2020 of its 19th meeting

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
bd
otherwise stated.

At Dec 31, 2019 At Dec 31, 2018

Taka Taka
ka

4.00 Property, Plant and Equipment

At Cost
Opening Balance 12,016,468 11,873,852
Add: Addition During the Year(Net) 2,008,456 142,616
n

14,024,924 12,016,468
Less: Accumulated Depreciation 6,946,159 4,913,054
la

Written Down Value 7,078,765 7,103,414

A Schedule of Property, Plant and Equipment is given in Annexure-1 for accounting & Tax Purpose

5.00 Investment in Share & Stock

Quoted Share (Publicly Traded listed with DSE) 70,376,314 74,446,214
Cost of Acquisition of DSE TREC & Share 247,120,683 247,120,683
Intial Public Offer - 3,630,710
Unquoted Shares (Demat Share & approved by SEC) 10,000,000 10,000,000
327,496,997 335,197,607
A Schedule of Investments in Shares is given in Annexure -2

6.00 Loan and Advances

Margin Loan 138,414,177 70,653,291
138,414,177 70,653,291
This represent amount of loan to the customer against shares purchased under prescribed guidline of BSEC

7.00 Advances, deposits, prepayments, Receivables

Security Deposit (Note: 7.01) 200,000 200,000
Advance Income Tax (Note: 7.02) 23,633,481 18,427,122
Advance Others (Note: 7.03) 2,613,107 118,402
Accounts Receivable (Note: 7.04) 14,229,262 2,899,456
40,675,850 21,644,979
116
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka
7.01 Security deposits
Security Deposit with Central Depository Bangladesh Ltd. (CDBL) 200,000 200,000
200,000 200,000
7.02 Advance Income Tax
On Turnover 13,922,269 10,123,290
On Bank Interest 1,464,765 1,351,943
On Dividend Income 6,306,006 5,026,447
Advance Tax- Others 46,500 31,500
Advance Tax- Strategic Investment* 1,893,941 1,893,941.00
23,633,481 18,427,121
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 1,796,100 90,000
Others 817,007 28,402
2,613,107 118,402
7.04 Accounts Receivable
Dhaka Stock Exchange Ltd. (Settelement A/c) 14,229,262 2,899,456
14,229,262 2,899,456
8.00 Cash and Cash Equivalents
Cash in Hand (*) 44,807,964 30,069
Cash at Bank (Note: 08.01) 105,079,356 82,939,059

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149,887,320 82,969,128
* Cash in hand means cash kept as pettty for maintaining daily regular expenses which adjust preoidcally and included unclear cheque from client.

8.01 Cash at Bank

NRB Commercial Bank Limited, Principal Branch (a)
NRB Commercial Bank Limited Cus A/C 0101-360-099
NRB Commercial Bank Limited IPO A/C 0101-360-098
NRB Commercial Bank Limited Operation A/C 0101-364-002
. co 61,753,597
60,074,997
326,525
1,352,075
38,195,791
36,457,068
880,715
858,008
Al-Arafa Islami Bank Limited, Motijheel Branch (b) 43,325,759 44,743,268
bd
Al-Arafah Islami Bank Limited Cus A/C 0021220006396 7,212,050 6,725,555
Al-Arafah Islami Bank Limited Dealer A/C 0021220006385 128,392 2,032,397
Al-Arafah Islami Bank Limited Strategic A/C 0021220007836 35,985,316 35,985,316
Total (a+b) 105,079,356 82,939,059
According to Demutualization Act 2013, DSE was agreed to sale 25% share to Strategic partner to Shenzhen Stock Exchange & Shanghai Stock
ka

Exchange. At the same National Board of Revenue(NBR) issued এস.আর.ও নং ৩১৯-আইন/আয়কর/২০১৮- 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 completetion of three year.

9.00 Share Capital

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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
la

40,000,000 Ordinary Shares of Taka 10.00 each fully paid 400,000,000 400,000,000
Name of Shareholders No. of shares
NRB Commercial Bank Limited 36,000,000
Dr. Toufique Rahman Chowdhury 200,000
Mr. Md. Shahidul Ahsan 200,000
Mr. Mohammed Mahtabur Rahman 200,000
Ms. Anika Rahman 200,000
Mr. Marzanur Rahman 200,000
Mr. A M Saidur Rahman 200,000
Mr. A.K.M Mostafizur Rahman 228,570
Mr. Abu Bakr Chowdhury 200,000
Mr. Mohammad Shahid Islam 228,580
Mr. Loquit Ullah 200,000
Mr. Tamal S.M Parvez 228,570
Mr. Rafikul Islam Mia Arzoo 228,570
Mr. Md. Mohiuddin 228,570
Ms. Shamimatun Nasim 200,000
Mr. Mohammed Adnan Imam 228,570
Mr.Mohammed Oliur Rahman 28,570
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

117
 At Dec 31, 2019 At Dec 31, 2018
Taka Taka

10.00 Retained Earnings

Opening Balance 6,704,090 23,395,490
Add: Total Comprehensive Income/(Loss) during the year 5,305,842 3,308,600
12,009,932 26,704,090
Less: Dividend Paid During the Year - 20,000,000
12,009,932 6,704,090
11.00 Other Liabilities
Payable to Stock Exchanges (Note: 11.01) 104,142 3,913,233
Payable to Clients (Note: 11.02) 121,113,684 41,162,630
Current Income Tax Payable (Note: 11.03) 15,699,994 11,517,433
Deferred Tax Liabilty (Note: 11.04) 122,807 354,495
Statutory Audit Fee paybale 57,500 46,000
TDS at Source 71,545 3,808,500
VDS at Source 119,067 12,750
Incentive and Performance Bonus 465,350 362,390
Provision for Diminution of Shares/Investment (Note: 11.05) 19,884,550 13,130,650
Payable with Marchant Bank 30,820 -
Other payable 1,072 -
157,670,531 74,308,081
11.01 Payable to Stock Exchanges

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Dhaka Stock Exchange Ltd. 104,142 3,913,233
104,142 3,913,233

11.02 Payable to Clients

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This represents amount payable to customers against sale of shares and/or receipts for purchasing of shares.

11.03 Current Income Tax Payable

121,113,684 41,162,630

Opening Balance 11,517,433 7,116,522

.
Add: Addition During the Year 4,182,561 4,400,911
bd
15,699,994 11,517,433
Less: Adjustment during the period - -
15,699,994 11,517,433
11.04 Deferred Tax Liabilty
ka

Opening Balance 354,495 552,538

Add: Addition During the Year - -
354,495 552,538
Less: Adjustment During the Year 231,688 198,043
n

122,807 354,495
11.05 Provision for Diminution of Shares/Investment
Opening Balance 13,130,650 5,741,327
la

Add: Addition During the Year 6,753,900 7,389,323

19,884,550 13,130,650
Less: Adjustment During the Year - -
19,884,550 13,130,650

12.00 Overdraft Facility From NRBC Bank Ltd 93,872,646 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

118
 2019 2018
Taka Taka

13.00 Interest Income

Interest on Bank Deposit 1,128,223 2,108,262
Interest Income from Margin Loan 13,173,726 8,092,464
14,301,949 10,200,726

14.00 Interest Expense 1,144,755 251,326

NRBC Bank Securities Ltd. availed Overdraft facility from our Parent Company NRBC Bank and
interest on outstanding balance

15.00 Brokerage Commission

Brokerage Commission 20,934,838 24,124,787
Less: Direct Charges (Note 16.01) 1,886,921 2,191,269
19,047,916 21,933,518
15.01 Direct Charges for getting Brokerage Commission
Laga Charge 1,886,921 2,191,269
1,886,921 2,191,269
16.00 Investment Income (Listed Company)
Dividend Income 6,503,683 10,285,862
Gain on Sale of Shares and Debentures(Net) 2,709,157 (918,964)
9,212,840 9,366,899

m
17.00 Other Operating Income
Transaction / Transmission Fee 65,118 70,048
Account Opening/Closing Fee 213,936 196,835
BO Account Fees/Other
IPO Commission/fee

18.00 Salary and Allowance

. co 494,145
14,005
787,204
380,277
17,460
664,619

Basic Salary 5,366,707 5,284,838

bd
Allowances 7,910,174 8,137,256
Incentive/Performance Bonus 456,400 362,390
Salaries & Allowances -Security & Cleaning Satff 874,144 635,280
Over Time to casual staff 2,600 -
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Festival Bonus 1,005,080 1,542,640

Ex-Gratia-Security & Cleaning Satff 79,098 4,700
Reward & Recognition (Staff Benefit) 10,000 10,000
Payment to Recognized Gratuity Fund - 374,943
Company Contribution to Recognized Providend Fund 539,896 421,066
n

16,244,099 16,773,112
19.00 Rent, Taxes, Insurance, Electricity, etc.
la

Office Rent 1,577,685 3,899,400

Rate & Taxes (Note : 19.01) 26,889 48,769
DES/BSEC/RJSC Fees & Charge (Note : 19.02) 384,607 175,180
CDBL Charges (Note : 19.03) 853,471 774,870
Insurance Premium Expenses [incl. VAT] 9,800 29,882
Power and Electricity Expense [incl. VAT] 610,890 310,275
WASA, Gas and Sewerage Expense [incl. VAT] 71,697 28,292
Common Utility Bill (Electricity, Gas, Wasa, Security Guard Salary, etc.) 207,600
3,742,639 5,266,668
19.01 Rate & Taxes
Patent /Trade License/Holding Tax/Sign Board Tax 26,889 48,769

19.02 DSE/BSEC/RJSC Fees & Charge

RJSC Fees - -
DSE/Broker Association Membership Fee 187,928 23,980
TREC Renrewal Fees 135,500 52,500
Authorized Representative Fee 37,700 92,700
Investor Protection Fund Fees 3,479 2,500
TWS establishment Fees 20,000 3,500
384,607 175,180

119
 2019 2018
Taka Taka

19.03 CDBL Charges

CDBL Charges - Share Trading 853,471 774,870
853,471 774,870
20.00 Legal/Professional/Preliminary Expenses
Notary Public and Other Charge - 1,050
Legal & Consultancy Fees - 72,260
- 73,310
21.00 Stamp, Postage & Telecommunication etc.
Postage & Courier Charges 14,283 23,359
Telephone Charges 223,158 254,406
Fax, Networking/Bandwith Charge 868,311 632,597
1,105,752 910,362
22.00 Stationery, Printing, Advertisement, etc.
Stationery Expenses 304,894 219,556
Printing Expenses 438,321 151,011
Publicity, Advertisement, etc 11,500 10,000
Binding, Photography and Photocopy 2,090 -
Computer Accessories ( Toner/Rebon/Ink/etc.) 45,073 58,081
801,878 438,648

m
23.00 Board of Directors’ Meeting Expenses
BOARD Meeting Expenses 59,820 112,100
59,820 112,100
24.00 Bank/Financial Expenses
Excise Duty
Bank Charge & Commission
. co 88,500
27,188
115,688
39,500
28,597
68,097
25.00 Depreciation and Repair of the Property, Plant & Equipment
bd
A. Depreciation of the Freehlod Properties
Furniture & Fixtures 215,419 151,777
Office Equipment 206,869 139,072
Computer Accessories 1,004,209 951,475
Bangladesh Made Software 360,000 360,000
ka

Motor Vehicles 434,000 744,000

2,220,496 2,346,325
B. Repair, Renovation & Maintenance of the Company’s Assets:
Parts (Replacement) of Office Premises items 117,528
n

Parts (Replacement) of Furnitures and Fixtures - 13,200

Servicing and Spare parts repalcement of Vehicle 118,517 31,547
la

Annual Software Maintenance and IT enable Cost 117,550

Parts (Replacement) of Office Appliance & Equipment 96,389 37,788
Parts (Replacement) of Computer and Computer Equipment 3,381 7,918
335,815 208,003
Total [a+b] 2,556,311 2,554,328

26.00 Other Expenses

Office Maintenance (Renovation of office premises) 109,940 46,537
Local Conveyance 46,210 57,205
Travelling Expenses - 36,062
AGM Expenses 141,810 85,464
Annual Software Maintenance and IT enable Cost 587,008 -
Uniform & Lerveries-SCS Staff 42,602 32,428
IPO Application Fee to DSE 15,000 48,000
Entertainment 378,487 450,101
Program Expenses 102,592 -
Training fee 58,000 -
Newspaper and Periodical 29,203 15,222
1,510,852 771,019

120
 2019 2018
Taka Taka

27.00 Provision for dinimunation of Share/Securities

Provision for unrealized loss of share/securities 6,753,900 7,389,323
6,753,900 7,389,323
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.

28.00 Current Tax Expense

Operating Profit 16,010,615 14,900,791
Taxable Income/(Loss) for standard tax rate applicable 7,459,740 5,005,694
Taxable Income other than standard tax rate 9,212,840 9,366,899
Total Taxable Income per Income tax Act, 1984 16,672,580 15,466,627
Current Tax Expenses for Standard Tax rate @35% and other applicable rate 4,182,561 4,400,911

29.00 Deferred Tax Expense

Carrying Amt Tax Base
Fixed Assets 7,078,765 6,727,887 350,879 1,012,844
Net Taxable Temporary Difference [i.e. Tax will be paid in future Period] 350,879 1,012,844
Corporate Tax @ 35% I.e. Deffered Tax Liability as of 31.12.2019 122,807 354,495
Less : Deffered tax Liabilties in 2018 354,495 552,538

m
Deffered Tax expnese for the year end on 31.12.2019 (231,688) (198,043)

30.00 Earnings Per Share (EPS)

Profit after Taxation 5,305,842 3,308,600
Number of Ordinary Shares Outstanding co
Earnings per shares (EPS) have been computed by dividing the basic earnings by the number of
40,000,000
0.13
40,000,000
0.08

ordinary shares outstanding as on December 31, 2019 in accordance with BAS-33.

.
bd
31.00 Event after the reporting period
The Board of Director in its 19th meeting held on February 26,2020 approved the audited financial Statement

32.00 Nature and type of related party transaction of the company

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A. NRBC Bank Limited : Parents Subsidiary Relationship

Nature of Transaction Types Note 2019 2018
Advance Income Tax- AIT on Interest Assets - Inter Company 7 1,284,278 1,202,802
Bank Deposit: Assets - Inter company 8 61,753,597 38,195,791
n

NRB Commercial Bank Limited A/C 0101-360-099 60,074,997 36,457,068

NRB Commercial Bank Limited A/C 0101-360-098 326,525 880,715
NRB Commercial Bank Limited A/C 0101-364-002 1,352,075 858,008
la

Payable to NRBC Bank Ltd : Client Depsoit Liability-Inter Company 11 36,147,128 606,774
Rent Payable to the Parents* Liability-Inter Company 12 - -
(*Settled during the period)
Overdraft Facility From NRBC Bank Ltd Liability-Inter Company 13 93,872,646 36,556,246
Interest on Bank Deposit Income-Inter company 13 814,767 245,601
Interest on OD Facility Expense-Inter company 14 1,144,755 251,326
Brokerage Commission Income-Inter company 15 1,601,369 2,428,801
Rent, Tax and Insurance :
Office Rent Expense-Inter Company 20 - 3,297,000
Bank/Financial Expense Expense-Inter Company 25 3,450 3,450
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

121
 Annexure - 1

122
NRBC Bank Securities Limited
Details of Property, Plant & Equipment for Accounting Purpose
As at December 31, 2019

Assets Depreciation
Sl
Properties & Assets Opeing Addition Disposal Closing Rate of Opeing Addition Disposal Closing Book Value
NO.
Balance during the year during the year Balance Depreciation Balance during the year during the year Balance
1 Furniture and fixures 1,517,772 1,107,400 401,000 2,224,172 10.00% 265,703 215,418.87 96,299 384,823 1,839,349
2 Office Equipment 1,423,716 1,332,466 397,355 2,358,827 10.00% 262,056 206,868.64 91,092 377,833 1,980,994
3 Computer and Accessories
la
4,794,980 366,945 - 5,161,925 20.00% 1,589,294 1,004,208.75 2,593,503 2,568,422
4 Bangladesh Made Computer Software 1,800,000 - - 1,800,000 20.00% 750,000 360,000.00 1,110,000 690,000
5 Motor Vehicles
n
2,480,000 - - 2,480,000 30.00% 2,046,000 434,000.00 2,480,000 -
6 Professionals and Reference Books - - - - 10.00% - - - -
Total 12,016,468 2,806,811 798,355 14,024,924 4,913,054 2,220,496 187,391 6,946,159 7,078,765
ka
Details of Property, Plant & Equipment for Tax Purpose
bd
As at December 31, 2019

Sl
Assets
. Depreciation
Properties & Assets Opeing Addition Disposal Closing Rate of Opeing Addition Disposal Closing Book Value
NO.
co
Balance during the year during the year Balance Depreciation Balance during the year during the year Balance
1 Furniture and fixures 1,517,772 1,107,400 401,000 2,224,172 10.00%
m 328,547 189,563 91,092 427,018 1,797,155
2 Office Equipment 1,423,716 1,332,466 397,355 2,358,827 10.00% 308,448 205,038 96,299 417,187 1,941,640
3 Computer and Accessories 4,794,980 366,945 - 5,161,925 30.00% 2,503,662 797,479 3,301,141 1,860,784
4 Bangladesh Made Computer Software 1,800,000 - - 1,800,000 50.00% 1,575,000 112,500 1,687,500 112,500
5 Motor Vehicles 2,480,000 - - 2,480,000 20.00% 1,210,240 253,952 1,464,192 1,015,808
6 Professionals and Reference Books - - - - 10.00% - - - -
Total 12,016,468 2,806,811 798,355 14,024,924 5,925,897 1,558,531 187,391 7,297,037 6,727,887
 NRBC Bank Securities Limited
Investments in Shares
As at December 31, 2019
Annexure - 2
A. Portfolio Invest Shares listed with DSE (quoted):

Particulars Number of Market price Market price Cost per Total Cost
Shares per share share
BBS* 198091 16 3,169,456.00 33.75 6,685,278.50
BPML* 4085 46 187,910.00 80.00 326,800.00
ESQUIRENIT* 20860 28.3 590,338.00 45.00 938,700.00
LANKABAFIN* 422500 18 7,605,000.00 29.50 12,462,075.15
LHBL* 144334 33.6 4,849,622.40 36.89 5,325,194.32
MERCANBANK* 1013281 13.2 13,375,309.20 16.82 17,043,755.54
NEWLINE* 4282 14.8 63,373.60 9.35 40,023.22
NHFIL* 152995 31.9 4,880,540.50 41.80 6,395,824.88
RAKCERAMIC* 57000 28.7 1,635,900.00 41.21 2,348,853.87
RINGSHINE* 115609 10.3 1,190,772.70 9.83 1,136,422.31
RUNNERAUTO* 7566 59.5 450,177.00 71.43 540,450.00
SILCOPHL* 4377 30.3 132,623.10 9.09 39,792.89
TITASGAS* 4292 30.9 132,622.80 34.13 146,506.49

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ADNTEL 18929 30 567,870.00 30.00 567,870.00
APEXTANRY 57025 116.8 6,660,520.00 135.82 7,745,118.04
CAPMIBBLMF 62000 7.9 489,800.00 9.41 583,339.09
COPPERTECH
SAPORTL
SEAPEARL
4978
210224
3916
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23.5
16.7
41.3
116,983.00
3,510,740.80
161,730.80
9.52
27.86
16.72
47,410.00
5,857,837.60
65,474.77
UNIONCAP 114361 6.3 720,474.30 18.18 2,079,587.39
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Total 50,491,764.20 70,376,314.06
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** Market value of ADNTEL was not abavilable as of 31.12.2019, subsequently Share started its trading on 06.01.2020 with average price of Tk.
40.00, but company considered market value is Tk. 30 on its financial statement.
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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
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Total 1000000 10,000,000

C. Initial Public Offer:

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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 subsequently it endorsed by Dhaka Stock Exchange in its 812th meeting
held on November 12, 2015. As per the provision of the Exchange Demutualization Act-2013 and in accordance with the Bangladesh Security
Exchange Commission (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 Beneficiary Owner’s account of the Company which
is 40% of the total holding of the shares and also shown as investment. 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 Capital Balance as prescribed in rule 3(4) of the Securities and
Exchange Rules 1987 to the stock exchange.
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 information is available to measure fair value”.

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 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 7th Annual General Meeting of the Company to be held on Sunday, 7th June 2020, at 12:00 noon through video
conference or at any adjournment thereof.

Signed this ………............………………….. day of ………………….......……………… 2020

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Signature of Proxy ……………...............................................…………………….

……………………………………
Signature of Shareholder
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Stamp
Folio No.: Tk.20.00
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No. of Shares ................................
N.B.
This Proxy Form, duly completed, must be deposited at least 72 (seventy two) hours before the meeting at the company’s Regis-
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tered 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 7th Annual General Meeting of the Company to be held on Sunday, 7th June 2020, at 12:00
noon through video conference.

Name of Member/Proxy ……………………………………………………………………………................

Folio No.:

Signature ………………………………………………….

Date ………………………………………………………...
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