BASIC Bank Limited. Serving people for progress

a. Industrial Credit  

BASIC Bank's services are directed towards the entrepreneurs in the small industries sector. A small industry, as per Industrial policy 1999 approved by the Cabinet, has been defined as an industrial undertaking whose total fixed investment is less than Tk.100 million.

The industrial loan reflected growth of 37.33 percent over the previous year. Total outstanding industrial loans including term loan and working capital stood at Taka 45,762.67 million at the end of 2012 compared to Taka 33,323.05 million of 2011. Total outstanding of Term Loan stood at Taka 22,805.17 million as on December 31, 2012 compared to Taka 14,731.97 million in 2011 reflecting a growth of 54.80 percent. The outstanding working capital finance extended to industrial units stood at Taka 22,957.50 million at the end of the reporting period compared to Taka 18,591.03 million in 2011 reflecting a growth of 23.49 percent. BASIC Bank’s services are specially directed towards promotion and development of small and medium industries. Its exposure to small and medium industries sector accounted for 53.24 percent of the total loanable fund. During the year a total of 160 projects were approved term loan. As on 31 December 2012, total 1,078 projects were in the portfolio of the bank. The textile sector including garments being one of the major contributors to national economy dominated the loan portfolio of the Bank. Financing in other sectors include agrobased industry like poultry, engineering; food and allied industries; chemicals, pharmaceuticals and allied industries; paper, board, printing and packaging; and other non-metallic goods, leather and jute products.

Year Million Taka
2000 2,735.50
2001 3,769.00
2002 2,735.50
2003 6,252.00
2004 7,691.20
2005 9,987.50
2006 12,243.56
2007 13,901.40
2008 17,226.40
2009 17,825.40
2010 27,777.89
2011 33,323.05
2012 45,762.67
Outstanding at year end
b. Commercial Credit  

The Bank also continued support in developing trade, general business and other commercial activities in the country which covers the full range of services such as cash credit, work order financing, secured overdraft etc. As on December 31 2012, total outstanding commercial loans stood at Taka 38,919.92 million compared to Taka 22,727.40 million in 2011 reflecting a growth of 73.39 percent.

Year Million Taka
2010 16,915.32
2011 22,727.40
2012 38,919.92
Outstanding at year end
c. Micro Credit  

BASIC Bank launched a Micro Credit Scheme in 1994. Micro Credit Scheme provides for the poor for generation of employment and income on a sustainable basis particularly in urban and suburban areas. The Bank follows three systems of credit delivery.
These are:
1. Lending to the NGOs who on-lend to their members. At present there are more than 50 such NGOs.
Lending direct to the targets groups or ultimate borrowers under the Bank’s own management.
Lending direct to the member-borrowers and NGOs providing nonfinancial services like group formation and monitoring and supervision on exchange for a supervision fee.

BASIC Bank also provides micro credit to the poor for enervation of employment and income on a sustainable basis, particularly in urban and suburban areas. At the end of 2012, total amount of Taka 1,273.22 million remained outstanding as against Taka 835.39 million in 2011. Recovery rate during this period remained at a highly satisfactory level of 96.31 percent (approx).

Year Million Taka
2000 120.40
2001 183.50
2002 104.00
2003 186.20
2004 284.10
2005 338.30
2006 359.24
2007 680.13
2008 764.46
2009 1,072.05
2010 988.72
2011 835.39
2012 1,273.22
Outstanding at year end
 d. Foreign Trade  

The Bank handled total import business of Taka 37,093.50 million and export business of Taka 29,939.20 million in 2012 compared to Tk. 47,087.80 million and Taka 33,061.10 million in 2011. Major items of exports were ready made knit & woven garments, sweater, jute & jute products, leather and leather goods, handicrafts, potatos etc. Items of import included mainly industrial raw materials, garments accessories, capital machinery, raw cotton, electronic consumer goods, chemicals, tires and tubes, reconditioned vehicles, bicycle spare parts, food items such as rice, wheat, maize, garlic, onion, sugar, chilly and other essential commodities.

The Bank became a proud member of SWIFT (Society for Worldwide Interbank Financial Telecommunication) that would pave the way to achieving uninterrupted communication related to banking for international trade. business and fund transfer.

Million Taka
Year Import Finance Export Finance
2000 7948.40 5557.00
2001 7542.80 5957.90
2002 8645.00 5557.60
2003 8930.50 6523.00
2004 12508.00 7908.00
2005 11097.23 4094.96
2006 17804.27 15463.74
2007 21266.57 16794.96
2008 27359.77 22270.87
2009 33976.60 19887.70
2010 42205.80 23998.47
2011 47,087.80 33,061.10
2012 37,093.50 29,939.20
Outstanding at year end
e. Other Activities  

The Bank provides services for remittance, underwriting, guarantee, public offering of shares etc. The bank also provides funds to investment and leasing companies. The Bank has recently created a venture capital fund for equity support to innovative but risky projects.


Lending Criteria

1. Entrepreneur
 Entrepreneur / promoter has to be creditworthy and competent enough to run the proposed industry.
2. Viability of the project
The project should be viable from organizational, technical, commercial, financial and economic points of view.

Technical Viability
  • The project should be technically sound and environment-friendly.
  • Technology transfer in case of borrowed know-how ought to be ensured.
  • Building should be well planned and well constructed.
Commercial Viability
  • Market prospect and potential for the product has to be fully assured at competitive prices.
  • Marketing channel for the product should be accessible to the entrepreneur.
Financial Viability
  • There should be reasonable debt equity ratio as determined by the Bank on individual case basis.
  • Debt service coverage ratio should be at least 2.5 times at the optimum level of production.
  • IRR should preferably be not less than 20 percent.
Economic Viability
The project should ensure benefit to the national economy and create sufficient employment opportunity and be environment friendly.


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