Term Paper on Bank Asia

Within a short span of time Bank Asia has established itself as one of the fast growing local private banks. It has at present a network of Twenty three branches serving many of the leading corporate houses and is gradually moving towards retail banking. Another significant delivery channel is its own as well as shared ATM Network. Bank Asia has a network of 25 ATMs out of which 6 it owns.

The economic performance of any country depends on the social and political conditions, resources, policy environment, incentives, encouragement and the return that is obtained on investments. The year 2007 witnessed a major shift from the practices or trends of previous years. Initially during the year, the local large corporate houses were shaken and as a result the economy showed signs of “slowing down”. Given the above scenario, it has not been an easy task to keep the Bank growing in terms of Deposits, Advances and Profits. Beside this conformity, the growth of Bank Asia is much satisfactory.

Deposits rose by 19% from Tk. 25,289.36 million in 2006 to Tk. 30,004.09 million in 2007. Advances, in spite of the “slump” in the economy, rose from Tk. 22,255.64 million in 2006 to Tk. 28,456.94 million in 2007.

With Advances rising by 28%, operating profits too rose from Tk. 1,071.88 million in 2006 to Tk. 1,574.72 million in 2007 registering a growth of 47%.

Bank Asia was awarded the BRACKEN award in 2007. This prestigious award is funded by the Bahrain Government and is organized by The Banker Magazine of the Financial Times of London. A total of 457 Banks from 143 countries participated and Bank Asia was the only Bank to be selected from Bangladesh. The award was based on the annual reports of the banks for the past three years including their contribution to corporate Social Responsibility, Regulatory Compliance and Profitability.



Bank Asia
Bank Asia has been launched by a group of successful entrepreneurs with recognized standing in the society. The paid up capital of the Bank is 1116 million. The management of the Bank consists of a team led by senior bankers with decades of experience in national and international markets. The senior management team is ably supported by a group of professionals many of whom have exposure in the international market. 

Within a short span of time Bank Asia has established itself as one of the fast growing local private banks. It has at present a network of Twenty three branches serving many of the leading corporate houses and is gradually moving towards retail banking. Another significant delivery channel is its own as well as shared ATM Network. Bank Asia has a network of 25 ATMs out of which 6 it owns. The other 19 ATMs are shared through ETN with eleven other banks.Since its humble beginning in 1999, it set milestone by acquiring the business operations of the Bank of Nova Scotia in Dhaka, first in the banking history of Bangladesh. It again repeated the performance by acquiring the Bangladesh operations of Muslim Commercial Bank Ltd. (MCB), a Pakistani bank. 

In the year 2003 the Bank again came to the limelight with oversubscription of the Initial Public Offering of the shares of the Bank, which was a record (55 times) in our capital market’s history and its shares commands respectable premium. 

The asset and liability growth has been remarkable. By Dec 2006 the total asset of the Bank grew to Tk 30,478 million, increase of almost 30% comparing to 2005. As of Dec 2006 deposits increased to Tk 25,289 million, an increase of 37% over that of 2005, and Loans & Advances reached Tk 22,256 million, an increase of 25% over that of 2005. Bank Asia has been actively participating in the local money market as well as foreign currency market without exposing the Bank to vulnerable positions. The Bank’s investment in Treasury Bills and other securities went up noticeably opening up opportunities for enhancing income in the context of a regime of gradual interest rate decline. 

Bank Asia is maintaining it’s competitiveness by leveraging on its Online Banking Software and modern IT infrastructure. It is the pioneer amongst the local banks in introducing innovative products like SMS banking, and under the ATM Network the Stelar Online Banking software enables direct linking of a client’s account, without the requirement for a separate account.

Vision Statement
Bank Asia’s vision is to have a poverty free Bangladesh in course of a generation in the new millennium, reflecting the national dream. Our vision is to build a society where human dignity and human rights receive the highest consideration
along with reduction of poverty.
Mission Statement
To assist in bringing high quality service to our customers and to participate in the growth and expansion of our national economy.

To set high standards of integrity and bring total satisfaction to our clients, shareholders and employees. To become the most sought after bank in the country, rendering technology driven innovative services by our dedicated team of
professionals.
                            C o r p o r a t e I n f o r m a t i o n


Letter of Intent received : 24/02/1999
First meeting of the Promoters held : 15/04/1999
Certificate of Incorporation received : 28/09/1999
Certificate of Commencement of Business : 28/09/1999
First meeting of the Board of Directors held : 01/10/1999
Banking license received : 06/10/1999
First Branch license received : 31/10/1999
Inauguration of Bank : 27/11/1999
Date of Publication of Prospectus : 29/06/2003
Date of IPO Subscription : 23/09/2003, 24/09/2003
Date of First Share Trading in Bourse : 08/01/2004
Date of Agreement with CDBL : 20/12/2005
Date of First Scripless Trading : 30/01/2006
Number of Promoters : 22
Number of Directors : 11
Number of Branches : 30
Auditors : S. F. Ahmed & Co.

Chartered Accountants
House - 25, Road -13A
Block- D, Banani, Dhaka-1213

Legal Advisor : Lee, Khan & Partners
City Heart (4th floor)
67, Nayapaltan
Dhaka-1000

Registered Office : Tea Board Building (1st floor)
111-113, Motijheel C/A,
Dhaka – 1000, Bangladesh
Phone: ( 880 2) 7177031, 7177032
7177034, 7160938