Profile of

Basic Bank

At a Glance

Year of establishment: 21st January,1989
Head office:  Bana Shilpa Bhaban (Ground floor)
Contact number:

Tel: 9569417,9559279,

9563068-9 Tlx: 632185

No of branch: --
Managing Directors ---
Chairman: Sheikh Enayetullah
Web site: --


BASIC Bank Limited (Bangladesh Small Industries and Commerce Bank Limited) registered under the Companies Act 1913 on the 2nd of August, 1988, started its operations from the 21st of January ,1989. It is governed by the Banking Companies Act 1991. The Bank was established as the policy makers of the country felt the urgency for a bank in the private sector for financing small scale Industries (SSIs). At the outset, the Bank started as a joint venture enterprise of the BCC Foundation with 70 percent shares and the Government of Bangladesh (GOB) with the remaining 30 percent shares. The BCC Foundation being nonfunctional following the closure of the BCCI, the Government of Bangladesh took over 100 percent ownership of the bank on 4th June 1992. Thus the Bank is state-owned. However, the Bank is not nationalized; it operates like a private bank as before.

BASIC Bank Limited is unique in its objectives. It is a blend of development and commercial banks. The Memorandum and Articles of Association of the Bank stipulate that 50 percent of loanable funds shall be invested in small and cottage industries sector.

The total assets of the Bank increased to Taka 29,417  million at the end 2006 from Taka 27,136 million in the previous year. The growth rate was 8.40 percent. Deposit rose from Taka 22,325 million in 2005 to Taka 24,084 million in 2006 showing a growth rate of 7.87 percent. Loans and advances stood at Taka 19,000 million as on December 31, 2006 against Taka 15,339 million at the end of 2005, recording a growth rate of 23.86 percent compared to 29.28 percent in the previous year. All out efforts were made to improve the recovery rate and control non-performing loans and advances. Although the recovery rate of project loans remained stable in the neighborhood of 97 percent the proportion of non-performing loans to total loans was  3.70 percent at the end of the year under review from 4.55 percent in 2005. Emphasis on the maintenance of quality of assets remained the centerpiece of the Bank's business strategy.

Year 2006 was a period of high growth in loans and advances increased by 23.86 percent to Taka 19,000.00 million compared to Taka 15,339.35 million in 2005. Growth of industrial finance was moderate and loans to small and medium industries was 51.70 percent of total loans and advances. The industrial loan of Tk. 998.75 crore was distributed among 13 sectors. Textile sector registered the highest concentration being 36.24 percent of industrial loans and 23.59 percent of total loans. Textile sector is followed by: food & allied industries - 13.73 percent of industrial loans and 8.94 percent of total loans, chemical & allied industries - 12.97 percent of industrial loans and 8.44 percent of total loans and engineering - 11.44 percent of industrial loans and 7.45 percent of total loans.


Copyright®  2009