a. Industrial Credit

BASIC Bank's services are directed towards the entrepreneurs in the small and medium scale industrial sector. Small and medium scale industries are defined in accordance to National Industrial Policy-2016 of the country.

In 2019, the industrial loan reflected negative growth of 0.48% over the previous year. Total outstanding industrial loans including term loan and working capital stood at Taka 89,554.90 million at the end of 2019 compared to Taka 89,984.70 million of 2018. Total outstanding of Term Loan stood at Taka 63,774.70 million as on December 31, 2019 compared to Taka 60,450.30 million in 2018 reflecting a growth of 5.50%. The outstanding working capital finance extended to industrial units stood at Taka 25,780.10 million at the end of the reporting period compared to Taka 29,534.40 million in 2018. 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 65.78% percent of the total industrial loan in 2019. During the year, a total of 30 projects were approved Term loan and working capital finance. As on 31 December 2019, total 1,155 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 including 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 etc.

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, 2019, total outstanding of commercial loans stood at Taka 58,997.50 million compared to Taka 58,331.20 million in 2018.

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 43 such NGO/MFIs.

2.Lending direct to the targets groups or ultimate borrowers under the Bank's own management.

3. Lending direct to the member-borrowers and NGO/MFIs 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 2019, total amount of Taka 815.10 million remained outstanding as against Taka 1,642.30 million in 2018. Recovery rate during this period remained at a satisfactory level of 76.53% percent (approx).

 d. Foreign Trade

The Bank handled total Import business of Tk. 32,514.70 million and Export business of Tk. 22,470.90 million in 2019 compared to Tk. 41,925.40 million and Tk. 23,102.40 million in 2018. 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.

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. BASIC Bank has 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.