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| a. Industrial Credit | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 a significant growth of 22.59 percent over the previous year. Total outstanding industrial loans including term and working capital stood at Taka 12,243.56 million at the end of 2006 compared to Taka 9,987.50 million of 2005. Total outstanding term loan stood at Taka 3,897.12 million as on December 31, 2006 compared to Taka 3,517.85 million in 2005 reflecting a growth of 10.78 percent. The outstanding working capital finance extended to industrial units stood at Taka 8,346.44 million at the end of the reporting period compared to Taka 6,479.71 million in 2005. Growth rate here was 29.00 percent. BASIC Bank's services are specially directed towards promotion and development of small industries. Its exposure to small and medium industries sector accounted for 53.43 percent of the total loans and advances. During the year total of 159 projects were sanctioned term loan. Out of which 89 were new and the rest were under BMRE of the existing projects. As on 31 December, 647 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. Other sectors financed include engineering; food and allied industries; chemicals, pharmaceuticals and allied industries; paper, board, printing and packaging; glass; ceramic; and other non-metallic goods and jute products. Recovery rate of project loan was 89 percent. |
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| b. Commercial Credit | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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The Bank also supports development of trade, business and other commercial activities in the country. It covers the full range of services to the exporters and importers extending various facilities such as cash credit, export cash credit, packing credit, short term loans, local and foreign bills purchase facilities. As on December 31, 2006 total outstanding commercial loans stood at Taka 6,397.21 million compared to Taka 5,013.55 million in 2005. |
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| c. Micro Credit | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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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. At the end of 2006, total amount of Taka 359.24 million remained outstanding as against Taka 338.30 million in 2005. Recovery rate during this period remained at a satisfactory level of 100.00 percent. |
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Million Taka |
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| 1995 | 4.59 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 1996 | 12.31 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 1997 | 45.10 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 1998 | 68.70 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 1999 | 103.90 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 2000 | 120.40 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 2001 | 183.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 2002 | 104.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 2003 | 186.20 |
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| 2004 | 284.10 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 2005 | 338.30 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 2006 | 359.24 | |||||||||||||||||||||||||||||||||||||||||||||||||||
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Outstanding at year end |
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| d. Foreign Trade | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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The bank achieved substantial growth in export in 2006 and the performance of the bank in import business was also satisfactory. The Bank handled total export business of Taka 15,463.74 million and import business of Taka 17,804.27 million in 2005. The export and import business grew by 39.34 percent and 26.32 percent respectively. Major items of exports were garments, jute products, textile, leather etc. Items of import included mainly industrial raw materials, garments accessories, capital machinery, food items and other essential commodities.
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Outstanding at year end |
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| 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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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. |
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| Technical Viability | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Commercial Viability | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Financial Viability | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Economic Viability | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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The project should ensure benefit to the national economy and create
sufficient employment opportunity and be environment friendly. |
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