BASIC Bank Limited. Serving people for progress
Activities

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 6.31 percent over the previous year. Total outstanding industrial loans including term loan and working capital stood at Taka 66,182.46 million at the end of 2014 compared to Taka 62,251.41 million of 2013. Total outstanding of Term Loan stood at Taka 37,233.01 million as on December 31, 2014 compared to Taka 33,696.04 million in 2013 reflecting a growth of 10.50 percent. The outstanding working capital finance extended to industrial units stood at Taka 28,949.44 million at the end of the reporting period compared to Taka 28,555.37 million in 2013 reflecting a growth of 1.38 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 41.18% percent of the total loanable fund in 2014. During the year a total of 103 projects were approved Term loan. As on 31 December 2014, total 912 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 agro based 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
2013 62,251.41
2014 66,182.46
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 2014, total outstanding of commercial loans stood at Taka 50,519.49 million compared to Taka 44,819.33 million in 2013 reflecting a growth of 12.72 percent.

Year Million Taka
2010 16,915.32
2011 22,727.40
2012 38,919.92
2013 44,819.33
2014 50,519.49
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 44 such NGOs.
2.
Lending direct to the targets groups or ultimate borrowers under the Bank's own management.
3. 
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 2014, total amount of Taka 1,641.16 million remained outstanding as against Taka 1,435.08 million in 2013. Recovery rate during this period remained at a highly satisfactory level of 97.09 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
2013 1,435.08
2014 1,641.16
Outstanding at year end
 
     
 d. Foreign Trade  

The Bank handled total import business of Taka 38,318.80 million and export business of Taka 26,691.27 million in 2014 compared to Tk. 42,009.17 million and Taka 30,538.29 million in 2013. Major items of exports were ready made knit & woven garments, sweater, jute & jute products, leather and leather goods, handicrafts, potatoes 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
2013 42,009.17 30,538.29
2014 38,318.80 26,691.27
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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