| Table Of Industrial Credit | Table Of Commercial 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 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.

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.

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 15 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.

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.

Million Taka

Outstanding at year end

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.

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.

Outstanding at year end

• 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.

• 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.

• 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.