CELEBRATING MUJIB BORSHO!

In 2020-21, we celebrate the life and times of Bangabandhu Sheikh

Mujibur Rahman, our beloved father of the nation, on the historic
occasion of his 100th birth anniversary.
Rupali Bank Limited was founded on the farsighted principles of
Bangabandhu. We pledge to uphold his values and beliefs that
Bangladesh’s economic progress has to be accompanied by inclusive
growth; where the dividends accrue to all segments of the society and
where vulnerable groups are appropriately protected.

We are committed to remain on the path that recognises his ideals and
ideas around the promotion of financial resilience and protection of
Bangladeshi households, and providing sound economic advice to our
fellow citizens in areas concerning their financial security and wellbeing.

Today, as a Bank that is rooted in Bangladesh’s soil, we reaffirm our

commitment to Bangabandhu and his vision of Bangladesh by continuing
to strive towards achieving the highest standards of excellence in
delivering our mandates as a longstanding financial institution of repute
in Bangladesh and upholding the precious trust that is placed upon us.
ABOUT THIS
REPORT
At Rupali Bank, as a leading financial services institution with presence across Bangladesh, one
of the key determinants of our continuing success is our accountability and commitment towards
our stakeholders. Dedicated to meet the broader themes of financial inclusion and employment
generation, our emphasis is on developing strong partnerships of trust and strengthening our
relationships by creating and delivering sustainable value. This Annual Report is a credible
medium to not just disclose information critical to our business and growth, but to communicate
with our stakeholders with integrity and transparency. It is our sincere effort to present the growth
story of our bank and its people.

Reporting scope and boundary
This Annual Report covers our financial and non-financial
performance during the period 1 January 2019 to 31 December
2019. Through this report, it is our genuine effort to keep our
stakeholders abreast of key developments, programmes and
initiatives, achievements, mid- to long-term direction and the
overall health of our operations in 2019.
The report also presents insights and forward-looking
statements on financial position and expected performance in
the year ahead.
Our report is particularly relevant for our stakeholders in
Bangladesh. A range of other stakeholders across the globe will
also find our report informative. Our financial statements are
independently audited and provide transparent disclosure of
our financial performance.
In preparing our report, we were guided by the requirements
of local and international statutory and reporting frameworks,
including those of Bangladesh Bank.
Integrated reporting
We have embarked on the integrated reporting <IR> journey
as part of our continuous efforts in enhancing information
disclosure. For our 2019 Annual Report, our <IR> scope includes
discussions on our medium-to-long term business goals,
and takes cognisance of our identified key material risks and
opportunities.

We create value through our 4 identified capitals:

Financial capital Human capital Natural capital Intellectual capital

Additionally, our key stakeholders have been identified as the following:

Customers Investors Employees Regulators Communities

2

Materiality determination
Our Annual Report presents a balanced and accessible
assessment of our strategy, performance, governance and
prospects.
The various issues and developments included in the 2019
edition were determined by a range of considerations, such as
quantitative and qualitative criteria, issues likely to impact our
ability to achieve strategic objectives and remain sustainable,
matters covered in reports presented to our Board of Directors,
Online version
The e-version of this Annual Report
2019 can be accessed from our website:
www.rupalibank.org
Rupali Bank Limited
the risks identified by our risk management team and the
interests of our key stakeholders. We also consider factors that
affect the economic and social environment in Bangladesh and
in select regions where we conduct business.
Management acknowledgement
Management acknowledges its responsibility to ensure the
integrity of the Annual Report. In the Board’s opinion, the report
addresses all material issues and matters and fairly presents the
Bank’s performance for the year 2019.
Annual Report 2019 3
 C NTENTS

Letter Of Transmittal 7 3. Message from Chairman and Managing

Notice of the 34th Annual General Meeting 8 Director & CEO
a. Chairman’s letter to stakeholders 46
b. Message from Managing Director & CEO 52
1. General Information
a. Our Identity 9
4. Corporate Governance
b. Our Vision 9
a. Directors' Report 66
c. Our Mission 10 b. Report on Corporate Governance 82
d. Our Core Values 10 c. Certificate on Corporate Governance 88
e. Strategic Objectives 11 d. BSEC Checklist on Corporate Governance 89
f. Disclaimer 12 e. Directors Responsibility for Internal Controls
101
and Financial Reporting
g. Ethical Principles 13
f. Report of the Audit Committee 103
h. Rupali Milestones 14
g. Declaration by Managing Director & CEO and
i. Awards & Recognition 16 106
CFO
j. Corporate Profile 18 h. Statement from Chief Risk Officer 108
k. Highlights of 2019 21 i. Reflections from CFO 111
l. Financial Highlights 22
m. A Retrospective of RBL 23
5. Business Review and Analysis
a. Management Review and Analysis 116
b. Segmental Analysis 120
2. Board of Directors and Management Profile c. Report on Non-Performing Assets (NPA) 124
a. Directors Profile 30 d. Our Human Capital 126
b. Composition of Board and Its Committee’s 34 e. Products and Services of Rupali Bank Limited 132
c. Management Team 35
d. Management Committees 38 6. Subsidiaries of Rupali Bank Limited
e. List of Executive DGM and AGM 39 a. Rupali Investment Limited 138
f. Organogram 44 b. Rupali Bank Securities Limited 140

4
 Rupali Bank Limited

7. Risk Management e. Graphical Presentation 215

a. Report of the Risk Management Committee 143 f. Segment Information 218
b. Report on Risk Management and Control
146 g. Profitability, Dividend and Liquidity Ratios 219
Environment
c. Disclosures on Risk Based Capital under h. Distribution of Shares in 2019 220
159
BASEL III
i. Market Price Information 2019 222
j. Financial Calendar 225
8. Sustainability Analysis
a. Our natural capital 176
b. Green Banking 179 11. Financial Statement RBL
c. Corporate Social Responsibility 182 a. Independent Auditor's Report 228
d. Financial Inclusion 184
b. Rupali Bank Ltd. Consolidated Balance Sheet 234
e. Our Intellectual Capital 186
c. Rupali Bank Limited Balanced Sheet 240
f. Mobile Banking 191
d. Notes to the Financial Statements 247
9. Economic Impact Report
a. Our Strategy to Create Value 197 12. Financial Statement - RIL 343
b. Maintaining Adequate Capital 201
13. Financial Statement - RBSL 365
c. Value Added Statement 202
14. Media Highlights 386
d. Economic Value Added Statement 203
e. Market Value Added Statement 204 15. Photo Gallery 388
f. Maintaining Liquidity 205 16. Remembrance 392
17. Branch Network 394
10. Shareholders’ Information
18. List of Authorized Branches 402
a. Five-Year Performance of RBL at a Glance 208
19. Annual Report Review Checklist 403
b. Key Financial Ratios and Performance 210
c. Financial Highlights of RBL in 2019 212 20. Corporate Governance Disclosure Checklist 407
d. Horizontal and Vertical Analysis 213 21. Proxy From 411

Annual Report 2019 5

LIST OF
ACRONYMS
AD Authorised Dealer ICCB International Chamber Of Commerce Bangladesh

AGM Annual General Meeting ICRRS Internal Credit Risk Rating System

ALCO Asset Liability Committee ICT Information & Communication Technology

ALM Asset Liability Management LDC’s Least Developed Countries

AML Anti-Money Laundering MCR Minimum Capital Requirement

AMLC Anti-Money Laundering Committee NPL Non Performing Loan
ATM Automated Teller Machine
PC Packing Credit
BACH Bangladesh Automated Clearing House
POS Payment of Sales
BAMLCO Branch Anti-Money Laundering Compliance Officer
RBL Rupali Bank Limited
BEFTN Bangladesh Electronic Fund Transfer Network
RBSL Rupali Bank Securities Limited
BFRS Bangladesh Financial Reporting Standard
RBTA Rupali Bank Traning Academy
BRPD Banking Regulation & Policy Department
RIL Rupali Investment Limited
BSEC Bangladesh Security Exchange Commission
RIT Rationalised Input Template
CAMLCO Chief Anti Money Laundering Compliance Officer
RKDS Rupali Kotipoti Deposit Scheme
CBS Core Banking Solution
RLDS Rupali Lakhopoti Deposit Scheme
CFT Combating Financing of Terrorism
RMDS Rupali Millionaire Deposit Scheme
CL Classified Loan
RMBSC Rupali Monthly Benefit for Senior Citizens
CMSME Cottage, Micro, Small and Medium Enterprises (CMSME)
RMSS Rupali Monthly Savings Scheme
CRM Credit Risk Management
RQPS Rupali Quarterly Profit Scheme
CRAR Capital to Risk-weighted Assets Ratio
RSCSS Rupali Senior Citizens Savings Scheme
CRR Cash Reserve Ratio
RTGS Real Time Gross Settlement
DSE Dhaka Stock Exchange Limited

DRC Data Recovery Centre RSBA Rupali School Banking Account

EFT Electronic Funds Transfer RWA Risk Weighted Assets

ERM Environmental Risk Management SAFA South Asian Federation of Accountants

GDP Gross Domestic Product SLR Statutory Liquidity Ratio

ICC Internal Control & Compliance SMT Senior Management Team

6
 Rupali Bank Limited

LETTER OF
TRANSMITTAL
All Shareholders
Bangladesh Bank
Registrar of Joint Stock Companies & Firms
Bangladesh Securities and Exchange Commission
Dhaka Stock Exchange Ltd.
Chittagong Stock Exchange Ltd.

Sub: Annual Report for the year ended 31 December 2019.

Dear Sir(s)

We are pleased to enclose herewith a copy of the Annual

Report 2019 together with the Audited Financial Statements
of Rupali Bank Limited for your kind information and record.

Yours Sincerely,

(Mohammad Najmul Hoda)

Deputy General Manager &
Company Secretary
(Current Charge)

Annual Report 2019 7

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8
 Rupali Bank Limited

GENERAL
INFORMATION

OUR IDENTITY
Incorporated on 14 December 1986, Rupali Bank is one of the oldest and
most respected state-owned commercial bank of Bangladesh. With an
established presence across the country, Rupali Bank provides a full suite
of banking products and solutions that meet the requirements of a diverse
customer base.

BDT 497,249.32 mn BDT 4,141.69 mn BDT 546.38 mn

Total assets Market capitalisation Net profit

572 2,26,50,865 155,442

Retail branches Depositor base Borrower base

5,641 9.81% 90.19%

Workforce Public Share Government share

OUR VISION
Our vision is to expand our loyal customer base by being known as the
financial partner of choice that constantly exceeds customer expectations.

Annual Report 2019 9

 OUR MISSION

Develop long- Uphold ethical values Offer rewarding

term relationships
that help our
customers achieve
financial success.
and meet our customer’s career opportunities
financial needs in and cultivate staff
the fastest and most commitment.
appropriate way and
continue to innovative in
order to achieve human
resources with superior
qualities, technological
infrastructure and service
packages.

OUR CORE VALUES

Social responsibility Performance Integrity

We care for and contribute to We measure results and We uphold trustworthiness
our communities reward achievements and business ethics

Respect Innovation Teamwork

We cherish every We encourage We work together to
individual creativity succeed

The first letters of the initial words form “SPIRIT” and

showcase our spirit of service, transparency, customer
commitment and foresight.

10
 Rupali Bank Limited

STRATEGIC OBJECTIVES

Develop a customer- Increase our market Achieve a significant

oriented service share by following a share of deposit and
culture with special disciplined growth credit from existing
emphasis on customer strategy. and niche markets.
care and convenience.

Leverage our Develop innovative Maintain a high quality

technology platform products and services assets portfolio to
and structure that attract our achieve strong and
scalable systems to targeted customers sustainable returns
achieve cost-effective and market segments. and to continuously
operations, efficient build shareholders’
MIS, improved delivery value.
capability and high
service standards.

Explore new Strengthen the Bank’s

avenues for growth brand recognition.
and profitability,
particularly by
diversifying loan
portfolio through
structured finance and
expansion of retail and
SME financing.

Annual Report 2019 11

DISCLAIMER
A forward looking statement predicts projects or uses future events as expectations and possibilities. Forward looking statements often
use words such as ‘anticipate’, ‘target’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘will’, ‘may’, ‘should’, ‘would’, ‘could’ or other
words of similar meaning. Annual Report 2019 contains some forward-looking statements which do not necessarily guarantee future
performance and involve risks and uncertainties, and actual results may materially differ from those contained as a result of various
factors. Forward looking statements involve inherent risks and uncertainties.

Some of the factors that may affect the banking business environment are as follows:

Microenvironment Factors that may Affect the Business:

General economic conditions in Rise in international prices of Introduction of compliance issues

Bangladesh, USA, Europe and the essentials result in volatility in raised by the international forums
other markets in the world. foreign exchange market. may affect the export growth.

International political unrest and Changes in country’s economy Volatility in capital market arising
its consequence may adversely due to natural calamities and from speculations.
affect the smooth flow of political unrests.
remittance.

Withdrawal of incentives given to Volatility in interest Increase in tax, VAT on banking

some thrust sectors may make rates. services.
the projects slow moving.

Increase in company tax Increase in CRR and SLR of the Increase in provisioning
rate. banks. requirement is likely to reduce the
ROA and ROE.

Internal Factors that may Affect the Business:

Any loss resulting from inadequate or failed internal processes,
people and systems or from external events.

12
 Rupali Bank Limited

ETHICAL PRINCIPLES

Customer focus and fairness Quality Honesty and integrity

At RBL, our prime focus is
to achieve perfection in our
customer service. Customers
are our first priority and
driving force. We wish to gain
customer confidence and
be their trusted partner. We
believe in fair treatment to
all customers, depositors,
borrowers and clients without
any discrimination.
Quality service experience is
paramount to our customers
and we are strongly
committed to fulfilling this
ideal. We have a culture
of timely compliance with
regulatory requirements.
We ensure the highest
level of integrity to our
customers, creating an
ongoing relationship of trust
and confidence. We treat
our customers with honesty,
fairness and respect.

Belief in our people Teamwork Good corporate

We recognise that employees
are our most valuable asset
and our competitive strength.
We respect the worth
and dignity of individual
employees who devote their
careers for the progress of
the Bank. We trust in equal
treatment to all shareholders
irrespective of their individual
size of shareholdings.
We are a firm believer in team
work and feel that loyal and
motivated teams can produce
extraordinary results. We
are driven by a performance
culture where recognition
and rewards are based
on individual merit and
demonstrated track record.
governance
Effective corporate
governance procedures are
essential to achieve and
maintain public trust and
confidence in any company,
more so in a banking
company. At RBL, we are
committed to following best
practices resulting in good
corporate governance.

Corporate social responsibility

As a responsible corporate citizen, we consider it important

to act in a responsible manner towards the environment and
society. Our commitment has always been to behave ethically
and contribute towards the improvement of the quality of life of
our people, the community and the society, of which we are an
integral part

Annual Report 2019 13

 RUPALI MILESTONES

Since Inauguration 15 Nov

2010 of co-branded 2012 Inauguration
ATM service of CBS

BATCH Inauguration of Web-

Operation 01 Aug based Remittance 24 Sep
2011 Management Software 2013
INFORMATION TECHNOLOGY

15 Jan Rupali katipoti 15 Jan Rupali quartlerly

2017 deposit 2017 profit scheme
scheme (RKDS) (RQPS)

Rupali monthly Rupali lakhpoti

saving scheme 15 Jan deposit scheme 15 Jan
(RMSS) 2017 (RLDS) 2017
PRODUCTS

22 Dec
1986
Date of 1986
Incorporation

First dividend Listing with

(10% in cash) 14 Dec Dhaka Stock
declared for the 1986 Exchange Ltd.
COMPANY income year

29 Feb Inauguration Brokerage House

2012 in the name of Rupali Bank
Securities Limited

Inauguration Merchant
Banking in the name of Rupali 08 Jan
Investment Limited 2015
SUBSIDIARY BUSINESS

Award received for Best Receiving 12TH ICAB

published Report in public
sector entity from Institute
2005
of Chartered Accountants
of Bangladesh (ICAB)
National Awards for Best
12 Dec Published Accounts Reports
2011 2011 First Prize Public Sector
Entities Presented by ICAB

Achieving Best IT Award received for Best

Use Award 2005 by 04 Aug Published Report in public 01 Oct
BASIS-DBBL 2011 sector entity from Institute 2012
AWARDS of Cost & Management
Accountants of Bangladesh
(ICMAB)

14
 Rupali Bank Limited

All the
Since 04 Dec Commencement 17 Apr branches are
2015 Mobile banking 2016 of 100 percent 2017 facilitated by
started online banking RTGS

All the branches Inauguration SMS Alert

are facilitated by 20 Apr of ATM service 28 Mar Services Since
BEFTN 2016 owned branded 2017 2017

01 Jun Rupali senior 06 Jun Customer’s deposit

2018 citizen saving 2018 accounts reached
scheme (RSCSS) 2,01,20,012

Rupali monthly Rupali millionaire

benefit for 01 Jun deposit scheme 31 Dec
senior citizens 2018 (RMDS) 2018
(RMBSC)

19 Aug
Listing with 1987 & 27
Chittagong Stock Dec 1995 Reintroduced
Exchange Ltd. logo of 1972

Commencement
27 Dec of Trading with 02 Jan
1995 DSE & CSE 2018

Number of Number of
1972 1980 2019
branches: branches:
200 503

Number of Number of Number of

branches: branches: branches:
159 1973 532 2011 572
BRANCH OPENING

Receiving the First Receiving the First

Prize of the 13TH ICAB Prize of the 14TH
22 Mar National Awards for 27 Apr ICAB National Awards 03 May
2013 Best Presented Annual 2014 for Best Presented 2014
Reports 2012. Annual Reports 2013.

Receiving SAFA Best Receiving First Wining the SAFA Best

Presented Annual Reports 21 Dec Prize the ICMAB 30 Nov Presented Annual Report
Award and SAARC 2013 Best Corporate 2014 Awards and SAARC
Anniversary Award for Award 2013. Anniversary Awards for
Corporate Governance 2011 Corporate Governance
in the Public Sector Banking Disclosures 2012.
Institutions category
secured First Position.

Annual Report 2019 15

AWARDS &
RECOGNITION
As a state-owned bank Rupali Bank Ltd. is performing well
with a strong branding position among our customers,
shareholders and stakeholders. Our sound financial
performance, our devoted services to the nations, our strong
corporate governance and efficient management enable us
to present a comprehensive Annual Report.
We received a number of awards for the annual report of RBL.
Rupali Bank Limited won the SAFA Best Presented
Annual Report Awards and SAARC Anniversary Awards
for Corporate Governance Disclosures 2012 in the Public
Sector Banking Institutions category.
The Bank received the First Prize of the 13TH ICAB
National Awards for Best Presented Annual Reports
2012 in the public sector banking institutions.
RBL has received the First Prize in the State owned
Commercial Bank Section the ICMAB Best Corporate
Award 2013 presented by the Institute of Cost and
Management Accountants of Bangladesh (ICMAB).
Rupali Bank Limited won the SAFA Best Presented
Annual Reports Award and SAARC Anniversary Award
for Corporate Governance 2011 in the Public Sector
Banking Institutions category secured First Position.
SAFA Best Presented Annual Reports 13th ICAB National Award for Best
Award and SAARC Anniversary Award for Presented Annual Reports 2012- 1st Prize
Corporate Governance 2012- 1st Prize (In the Public Sector Entities status)
16
The Bank received the First Prize of the 12TH ICAB
National Awards for Best Presented Annual Reports
2011 in the public sector banking institutions.
Rupali Bank Limited has received the Second Prize in
the State owned Commercial Bank Section the ICMAB
Best Corporate Award 2012 presented by the Institute
of Cost and Management Accountants of Bangladesh
(ICMAB)
RBL won the Second Prize of the 11TH ICAB National
Awards for Best Published Accounts Reports 2010 in the
Public Sector Entities status.
RBL has also received in the State owned Commercial
Bank Section the ICMAB Best Corporate Award 2011
presented by the Institute of Cost and Management
Accountants of Bangladesh (ICMAB).
The Bank received the First Prize of the 14TH ICAB
National Awards for Best Presented Annual Reports
2013 in the public sector banking institutions.
These awards and recognition are a testimony of compliance
by the bank with Bangladesh Accounting Standards and
International Accounting Standard. Our report provides
ample information for our shareholders and stakeholders to
judge our financial health as well as sustainability in banking
industry.
ICMAB Best Corporate Award 2013-1st
Prize
 Rupali Bank Limited

SAFA Best Presented Annual Reports 12th ICAB National Awards for Best ICMAB Best Corporate Award 2012- 2nd
Award and SAARC Anniversary Award for Published Accounts Reports 2011- 1st Position
Corporate Governance 2011- 1st Prize Prize

11th ICAB National Awards for Best ICMAB Best Corporate Award 2011 14th ICAB National Award for Best
Published Accounts Reports 2010- 2nd Presented Annual Reports 2013 - First
Position Prize

The Bank received School Banking Award of Excellence for Innovative TRANSFAST Business Partners
Conferance Award 2015 - First Prize Banking services as well as lucrative stall Excellence Award 2017.
decoration - First Prize

Annual Report 2019 17

CORPORATE PROFILE
Name of the Company

Registered Office Rupali Bhaban, 34, Dilkusha C/A, Dhaka-1000

Rupali Bank Limited (RBL) was incorporated as a Public Limited Company on 14

December 1986 under the Companies Act, 1913 and has taken over the business
Genesis of Rupali Bank emerged as a Nationalised Commercial Bank in 1972, pursuant
to Bangladesh Bank Nationalization Order 1972 (P.O.No. 26 of 1972) as a going
concern.

Legal Status Public Limited Company.

No C-17063 of 1986-1987
Incorporation number
467

Date of Commercement of Business 14.12.1986, Issue No. 6031-32

Vendor’s Agreement MF/Inv-I/CI-18/86/592, 14 December 1986

BB License No. BCD (D) 200/44-1781 (A)

Banking License obtained 14.12.1986

Authorized Capital 700.00 crore

Paid-up Capital 414.17 crore

Face Value per Share Tk. 10.00

Tax Identification No. (e-TIN) 637043541293

Vat Registration No. 9011039307

Chairman of the Board of Directors Monzur Hossain, MP

Managing Director & CEO Md. Obayed Ullah Al Masud

Chief Risk Officer (CRO) Khondoker Ataur Rahman, DMD

Head of Internal Control and Compliance Arun Kanti Paul, DMD

Chief Financial Officer (CFO) Md. Shawkat Jahan Khan, FCMA

Company Secretary Mohammad Najmul Hoda

Domestic Network

Number of Branches 572

Number of Urban Branches 292

Number of Rural Branches 280

Number of Divisional Office 10

Number of Local Office 01

Number of Zonal Office 27

18
 Rupali Bank Limited

Number of AD Branches 30

Number of Corporate Branches 93 (CORPORATE-1 : 14, CORPORATE-2 : 79)

Number of Computerized Branches 572

Branches Operated Under CBS 572

Number of BEFTN Operated Branches 572

Number of RTGS Branches 572

Number of BACH Operated Branches 409

Number of Head Office Divisions 38

Mobile Financial Services Operation Started on 20.04.2017

ATM Booth (Own Branded) 12

Number of Foreign Correspondence country 81

Number of Foreign Correspondence 370

Number of Employee 5641

Subsidiaries

Sadharan Bima Tower (8th Floor), 37/A, Dilkusha C/A DHAKA-100, Phone:
Rupali Investment Limited (RIL)
47112923

Rupali Bank Securities Limited (RBSL) Humayun Court (2ND Floor), 21, Motijheel, C/A DHAKA-100, Phone: 9551680

National Credit Rating Limited (NCR) based on financials up to December

31, 2018.

Rating 2018 2017 2016

Long term A- A- A-
Credit Rating of RBL
Short term ST-3 ST-3 ST-3
Govt. Support (Long term) AAA AAA AAA
Govt. Support (Short term) ST-1 ST-1 ST-1
Outlook Developing Developing Developing

Tier-2 Subordinated bond rating BBB+ by Alpha Credit Rating Limited

Phone PABX +88-02-9551624-25, +88-02-9551525, +88-02-9552184

Fax +88-02-9564148, +88-02-9552671

SWIFT Code RUPBBDDH

Email info@rupalibank.org

Website www.rupalibank.org

Help Desk 9553799, PABX-1207

Annual Report 2019 19

 Share Information

Shareholding Pattern Government: 90.19% (373,527,150), General Public & Institution: 9.81%(40,641,482)

Number of Shares 414,168,632

Number of Sharesholders 6,254

Market Price of Share (DSE & CSE), During 2019

DSE CSE

Highest : Tk 34.60 Highest : Tk 38.40

Lowest : Tk 28.60 Lowest : Tk 28.00

Legal Advisors of RBL

Mr. Md. Ismail Hossain

District and Sessions Judge (Retd.)
Legal Adviser, Law Division
Rupali Bank Ltd.
Head Office, Dhaka

Auditors of RBL

HUSSAIN FARHAD & CO. K M HASAN & CO.

Chartered Accountants Chartered Accountants
House # 15, Road # 12, Block # F Hometown Aparment (8th and 9th Floor)
Niketon, Gulshan 1 87 New Eskaton Road
Dhaka-1120 Dhaka-1000, Bangladesh

Tax Advisor of RBL

K M HASAN & CO.

Chartered Accountants
Hometown Aparment (8th and 9th Floor)
87 New Eskaton Road
Dhaka-1000, Bangladesh

Chief Security Officer

Major Khandaker Mukit Al Mahmood (Retd.)

Tel: 02-9590994

Medical Consultant

DR. Miah Md. Mahtabuzzaman

DR. Kanika Rani Das

20
 Rupali Bank Limited

HIGHLIGHTS OF 2019

Financial inclusion
Advancing our vision for financial inclusion, we focused on augmenting our customer base and fulfilling their
expectations. Progress achieved includes the following:

Expanded our banking platform Extended the scope of Covered vulnerable

to the unbanked segments of the agricultural credit for rural population segments
population activities under formal
banking through
the establishment
of exclusive banking
accounts for farmers,
freedom fighter, school-
Enlarged small-sized loan Increased disbursement of micro-
going children, etc. About
disbursement to the self- finance and small-ticket loans to
15 mn students were
employed facilitate M/SME activities
given stipend through
mobile banking

Established 3 new branches in Ensured dispensation of quality

rural areas to take the total base financial service at a reasonable
to 285 cost

Innovation and digitalisation

We continued our efforts in key focus areas in the realm of banking digitalisation, which will help us explore a wider
spectrum of solutions to improve employees’ and customers’ experience. We continued to reinforce our digital
banking platform by providing online banking, SMS alerts, ATM and POS services, utility bill payments, income tax
payments, e-payments (including RTGS), video conferencing, etc.

Geographical expansion
With a view to reinforce our geographic footprint and advance our vision of financial inclusion, we established 4
branches during the year, including 1 urban branch in Mymensingh and 3 rural branches in Manikgonj, Pabna and
Narayangonj.

People development
At our Bank, our people are our biggest asset. During the year we invested focused efforts to improve our HR practices,
drive structural changes in training and capacity building, improve workforce motivation and create enabling
platforms, programmes and processes. Through such initiatives, we were able to create a positive impact across
workforce productivity, organisational culture and performance management.

Annual Report 2019 21

FINANCIAL HIGHLIGHTS

BDT 414,624.25 mn BDT 306,724.04 mn 73.98 % BDT 103,464.17 mn

Total Deposits Total Advances AD Ratio Investments

BDT 18.85 mn BDT 1,932.28 mn BDT 956.81 mn BDT 1.32

Net Interest Income Operating Profit Profit before Tax Earnings per Share (EPS)

BDT 10 BDT 154,018.30 mn BDT 26,892.70 mn BDT 22,569.20 mn

Book Value per Share Imports Exports Remittance

BDT 497,249.32 mn 572 285 BDT 4,141.69 mn

Total Assets CBS Branches Branches in Rural Areas Paid-up Capital

6.81% 4.66% 40.75% 5,641

Cost of Funds Cost of Deposits NAVPS Manpower

22
 Rupali Bank Limited

A RETROSPECTIVE OF RBL
List of Chairman of Rupali Bank Limited (1972-2019)

SI Name of Chairman & Managing Director/Chairman Tenure

1. Mr. Mansur-Ul-Ameen 01-01-1972 - 01-01-1976

2. Mr. Abdul Wahid 02-01-1976 - 16 -05-1981

Name of Chairman

1. Justice Mohammad T. H. Khan 27-04-1981 - 31-03-1982

2. Mr. G. M. Chowdhurry 20-05-1982 - 30-04-1985

3. Mr. M. Keramot Ali 08-05-1985 - 08-04-1986

4. Mr. A.T.M . Amin 09-04-1986 - 13 -12-1986

5. Mr. Chawdhury A. K. M. Aminul Haque 14 -12-1986 - 24-01-1987

6. Mr. A.F. M. Ehsanul Kabir 25-01-1987 - 21-02-1990

7. Mr. A B M Shahjahan 22-02-1990 - 25-05-1990

8. Mr. Nurul Islam Moni 26-05-1990 - 14 -12-1990

9. Dr. A K M Mosiur Rahman 15-12-1990 - 10-07-1991

10. Mr. Azizul Haque 11 -07-1991 - 16 -04-1994

11. Mr. Syed Amir-ul -Mulok 17-04-1994 - 07-08-1995

12. Mr. Abu Hena 08-08-1995 - 08-04-1996

13. Brig. A.L.M Fazlur Rahman(psc) 09-04-1996 - 10 -05-1996

14. Mr. M A Sayed 11 -05-1996 - 22-11 -1997

15. Mr. Afzalur Rahman 23-11 -1997 - 25-06-2000

16. Al-Haz K. Rashiduzzaman Dudu 26-06-2000 - 19 -08-2001

17. Prof. Dr Momtaj Uddin Ahmed 20-08-2001 - 17-12-2002

18. Mr Mufleh R Osmani 18-12-2002 - 28-04-2003

19. Mr K.M. Nazmul Alam Siddiqui 29-04-2003 - 09-01-2004

20. Mr. Md. Shafiqul Islam 10 -01-2004 - 05-11 -2006

21. Dr. Mohammad Tareque 13 -11 -2006 - 13 -02-2007

22. Mr. A.T.M Fazlul Karim 27-02-2007 - 24-02-2009

23. Dr. Ahmed Al Kabir 06-12-2009 - 05-12-2014

24. Mr. Amalendu Mukherjee (Acting Chairman) 08.12.2014 - 05.04.2015

25. Mr. Monzur Hossain, MP 02.04.2015 - Till date

Annual Report 2019 23

List of Managing Directors of Rupali Bank Limited (1972-2019)

SI Name of Managing Director Tenure

1. Mr. Mansur-Ul-Ameen 01-01-1972 - 01-01-1976

2. Mr. Abdul Wahid 02-01-1976 - 16 -05-1981

3. Mr. Abul Hashem 17-05-1981 - 28-01-1983

4. Mr. Nur Ahmed (Current Charge) 01-02-1983 - 24-02-1983

5. Mr. M. A. Karim 25-02-1983 - 01-07-1983

6. Mr. Quazi Baharul Islam (Current Charge) 01-07-1983 - 21-02-1984

7. Mr. M. Ahsanul Haque 22-02-1984 - 09-08-1986

8. Mr. S M Afanoor 09-08-1986 - 06-09-1987

9. Mr. Golam Mohammad (Current Charge) 06-09-1987 - 31-03-1988

10. Mr. Quazi Baharul Islam 31-03-1988 - 10-06-1990

11. Mr. AKSM Taifur Hussain 10-06-1990 - 15-06-1992

12. Mr. Mahbubur Rahman Khan 16-06-1992 - 01-11 -1993

13. Mr. S.M. Nizamuddin Ahmed 01-11-1993 - 29-12-1994

14. Mr. Rafiqul Karim Chowdhury 05-01-1995 - 08-01-1997

15. Mr. A. K. M Nazmul Hoq 08-01-1997 - 31-05-1999

16. Mr. Mohammad Hossain (Current Charge) 31-05-1999 - 16 -08-1999

17. Mr. Md. Yasin Ali (Current Charge) 24-08-1999 - 01-01-2001

18. Mr. Robiul Hossain 01-01-2001 - 12 -11-2001

19. Mr. Md. Yasin Ali 13-11-2001 - 09-11 -2002

20. Mr. A H Iqbal (Current Charge) 13-11-2002 - 05-04-2003

21. Mr. Mohammad Forhad Hossain 06-04-2003 - 29-06-2003

22. Mr. Md. Abdul Hamid Miah 30-06-2003 - 08-02-2010

23. Mr. Jaglul Karim 09-02-2010 - 17-03-2010

24. Mr. M. Farid Uddin 18-03-2010 - 06-07-2016

25. Mr. Debasish Chakrabarty (Acting) 07-07-2016 - 27-08-2016

26. Mr. Md. Ataur Rahman Prodhan 28-08-2016 - 27.08.2019

27. Mr. Md. Obayed Ullah Al Masud 28.08.2019 - Till date

24
 Rupali Bank Limited

MAJOR FINANCIAL INDICATORS OF RBL (1972-2019)

(all figures are in Tk. cr, unless otherwise indicated)

Authorised Paid- up Loan & Operating Number of

Year Deposit Import Export Investment Employees
Capital Capital Advance Profit Branches
1972 5.00 1.00 62.47 52.76 2.06 9.12 10.01 0.70 2416 159
1973 5.00 2.00 89.95 67.17 30.00 18.30 13.41 2.02 3122 200
1974 5.00 2.00 105.29 72.78 63.35 34.44 25.94 2.59 3382 209
1975 5.00 2.00 111.00 81.68 67.57 51.51 26.11 5.01 3747 227
1976 5.00 2.00 134.44 96.97 105.69 81.07 30.50 4.47 3797 257
1977 5.00 2.00 178.60 124.86 115.59 75.27 37.26 4.17 5042 361
1978 5.00 2.00 226.71 159.66 225.96 83.50 44.06 4.21 5591 449
1979 5.00 2.00 288.70 221.37 193.11 79.10 38.32 4.38 6237 489
1980 5.00 2.00 357.83 284.95 218.81 100.87 54.24 7.18 6487 532
1981 5.00 2.00 397.61 326.41 293.91 114.55 66.51 8.40 5382 537
1982 5.00 2.00 453.68 338.27 166.10 180.03 87.32 9.50 5391 466
1983 5.00 2.00 627.63 410.16 221.36 155.05 145.19 12.31 6048 466
1984 10.00 2.00 462.46 627.00 570.16 235.60 159.60 16.47 6294 482
1985 10.00 2.50 968.25 702.91 595.16 199.22 193.54 24.86 6477 490
1986 100.00 20.40 1166.67 767.50 483.23 195.69 315.60 14.14 6483 499
1987 100.00 27.20 1385.13 921.43 724.09 266.30 232.72 16.76 6611 504
1988 100.00 27.20 1515.54 1026.10 560.62 310.99 328.07 1.22 6724 515
1989 100.00 27.20 1633.26 1198.08 985.10 321.82 224.36 (10.38) 6710 516
1990 100.00 35.20 1696.05 1109.11 1041.49 262.39 447.99 (72.72) 7061 516
1991 100.00 35.20 1904.28 1165.72 498.87 237.92 467.88 (40.70) 7027 516
1992 100.00 35.20 2076.97 1109.63 550.80 220.54 483.25 (176.71) 6902 516
1993 700.00 35.20 2234.93 1263.50 713.86 231.24 640.84 (34.68) 6790 517
1994 700.00 125.00 2418.27 1337.23 851.38 242.80 709.25 (43.18) 6287 518
1995 700.00 125.00 2733.58 1452.59 1442.64 325.91 803.66 39.14 6176 518
1996 700.00 125.00 3246.69 1732.65 1231.22 397.27 847.30 1.70 6185 518
1997 700.00 125.00 3199.88 2030.04 1450.00 540.00 722.81 1.02 5999 516
1998 700.00 125.00 3521.74 2150.20 2135.00 691.00 803.99 (7.46) 6084 516
1999 700.00 125.00 3856.00 2381.98 1372.30 719.14 869.88 (30.81) 5885 514
2000 700.00 125.00 4327.82 2621.31 2112.00 720.00 970.44 10.23 5778 512
2001 700.00 125.00 4829.54 3833.95 2105.97 684.39 1064.34 28.69 5824 514
2002 700.00 125.00 5575.19 4167.86 1704.49 642.83 1249.05 44.27 5628 506
2003 700.00 125.00 5798.33 4211.02 1984.89 732.40 1399.73 55.28 5412 493
2004 700.00 125.00 6367.36 4534.49 2442.42 679.99 1320.31 51.34 5196 493
2005 700.00 125.00 6687.05 4492.07 2165.39 611.75 1290.28 81.08 5008 493
2006 700.00 125.00 6783.21 4570.95 1484.00 696.00 1206.82 25.47 4753 492
2007 700.00 125.00 7288.61 4708.03 1985.67 639.88 1409.06 281.38 4430 492
2008 700.00 125.00 7120.80 4903.00 2070.28 710.16 1254.57 114.51 4269 492
2009 700.00 125.00 7391.28 5234.42 1953.68 752.71 1430.30 209.87 4529 492
2010 700.00 125.00 9112.38 6604.90 6024.00 849.00 1571.72 244.69 4559 492
2011 700.00 137.50 7380.34 7652.49 6926.00 1351.31 2361.12 360.06 4982 503
2012 700.00 165.00 13659.88 9064.16 4510.82 1550.58 2657.23 367.46 5645 506
2013 700.00 181.50 17795.64 10742.63 6516.51 1817.08 3925.31 205.00 5669 528
2014 700.00 208.73 22165.68 12501.20 7798.49 1941.31 6822.00 232.70 5914 535
2015 700.00 240.03 25382.96 14251.50 11987.70 2162.78 8265.42 250.20 5646 554
2016 700.00 276.03 27911.60 17515.04 10801.36 2500.45 7965.12 (88.78) 5438 562
2017 700.00 303.64 31948.76 20667.27 13210.01 2298.97 6840.02 508.52 5157 563
2018 700.00 376.52 38954.95 24749.06 11402.15 2600.20 8233.65 309.50 4929 568
2019 700.00 414.17 41,462.43 30,672.40 15,401.83 2,689.27 10,364.62 193.23 5641 572

Annual Report 2019 25

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26
Rupali Bank Limited

Annual Report 2019 27

BOARD OF DIRECTORS

Md. Khalilur Rahman Monzur Hossain, MP

Director Chairman

Mohammad Delwar Hossain Mohammad Abdul Baset Khan

Director Independent Director

28
 Rupali Bank Limited

Arijit Chowdhury A. K. M. Delwer Hussain, FCMA

Director Director

Md. Obayed Ullah Al Masud Md. Rizwanul Huda

Managing Director & CEO Director

Annual Report 2019 29

DIRECTORS’ PROFILE
Monzur Hossain, MP
Chairman
Mr. Monzur Hossain is the member of 11th Parliament of
Bangladesh for the seat of FARIDPUR-1. He is the member of
the parliamentary Standing Committee for Public Accounts and
Ministry of Planning. He retired in 28 February 2015 as Senior
Secretary to the Government of Bangladesh. He joined as
Chairman to the Board of Directors of Rupali Bank Limited on
2 April 2015.
During his long span of administrative career he served in
different capacities at field level and in Bangladesh Secretariat.
He served as Freelance consultant, LGED, Peoples Republic
of Bangladesh; Additional Secretary to the Ministry of Public
Administration; Water Resources; Local Government Division;
Secretary to the Ministry of Home affairs; Planning; Agriculture;
Office of the President; Member of Planning Commission and
finally Senior Secretary, Local Govt. division, Ministry of LGRD &
Cooperatives, Govt. of Bangladesh.
Mr. Monzur Hossain obtained his BSS (Hons), MSS in Economics
from Dhaka University. He holds a Fellowship in Public and
International Affairs in Woodrow Wilson School, Princeton
University, USA.
For professional activites he visited Australia, Brazil, Belarus,
China, Denmark, France, Germany, Italy, Indonesia, India,
Japan, Malaysia, Myanmar, Morocco, New Zealand, Switzerland,
Belgium, Russia, Singapore, South Korea, Tunisia, Turkey,
Thailand, USA, UK, Ukraine, Vietnam, UAE, Philippines, etc.
30
Arijit Chowdhury
Director
Mr. Arijit Chowdhury is serving as an additional secretary at
Bank and Financial Institutions Division, Ministry of Finance,
Bangladesh Secretariat. He Joined the Board of Directors of
the Bank on 06 January, 2016. He is also a Member of the Audit
Committee of RBL
During his career he served in different capacities in the filed
level and in Bangladesh Secretariat. Currently, he is acting as a
Director of the Social Development Foundation and Bangladesh
Municipal Development Fund. Mr. Chowdhury is also Member
of General Body-SME foundation, Bangladesh Administrative
Service Association, Dhaka University History Department
Alumni. Member, Sovereign wealth fund committee, Neuro-
Development Disabled protection trust, British Alumni, Financial
Inclusion Strategies Peer Learning Group (FISPLG), Alliance for
Financial Inclusion (AFI). He was former Director of IFIC Bank,
Ansar VDP Unnayan Bnak and Nepal Bangladesh Bank.
He worked as a member of the Steering committee for reviewing
the MoU of Asian Infrastructure Investment Bank (ALLB).
Prepared the TPP and worked to monitor and implementation
enterprise Growth and Bank Modernization project. Participated
in international conference on conditional cash transfers in
Urban Areas in Columbia.
Mr. Chowdhury completed his post graduation degree (M.A,
History) from University of Dhaka. Afterwards, he also obtained
Post graduate degree (MSc in Development Finance) from
Birmingham University.
He visited UK, USA, Australia, New Zealand, Malaysia, Thailand,
Singapore, South Africa, Colombia, Pakistan, Nepal, India,
Kazakhstan, China, South Korea etc. for his professional
activities.

A. K. M. Delwer Hussain, FCMA
Director
Mr Delwer Hussain FCMA is a member of finance committee
of BUET, WASO Credit Rating Company BD Ltd. and secretary
general of Consultative Committee of State Owned Enterprises.
He is a former acting chairman of Bangladesh Sugar and
Food Industries Corporation. He was also Chairman of Risk
Management Committee and Member of Audit Committee of
RBL. Mr Delwer Re-appointed to the Board of Directors of RBL on
06 February, 2017.
During his career he was Secretary General, Consultative
Committee of State Owned Enterprises (CONCOPE) (2012-2017),
President, National Council of the Institute of Cost and Management
Accountants of Bangladesh (2004 & 2013), Board Member, South
Asian Federation of Accountants (2004 & 2013) Director, Bangladesh
Institute of Capital Market (2013), Dhaka Stock Exchange Limited
(2004), Dhaka Power Distribution Company (DPDC in 2008 &
2009), Bangladesh Diesel Plant Ltd., Khulna Shipyard Ltd. and
Narayangonj Dockyard Ltd. (2004 & 2013), Member, Confederation
of Asian and Pacific Accountants (2004)
Mr. Delwer is an expert in dealing finance, budget, fund
Management, taxation, insurance, accounting system, auditing,
inspection, project management, business negotiation and
regulatory compliance. His main areas of interest are Cost
Accounting, Management Accounting & Financial Management.
Besides, he participated as many as 20 professional training,
workshops and seminar held at home and abroad.
Mr. Delwer completed his BA (Hons), MA from Dhaka University.
He qualified as a Cost and Management Accountant from
ICMAB in 1990. He has a Post Graduate Diploma in Computer
Science (PGD) and took an Advance Course on Administration
and Development (ACAD) from BPATC. More than six research
articles published in the Journals of International repute.
He visited USA, Canada, United Kingdom, France, Russia,
Switzerland, Australia, Brazil, New Zealand, UAE, South
Korea, Malaysia, Thailand, Singapore, India, Pakistan,
Sri Lanka, Nepal & Maldives.
Rupali Bank Limited
Md. Rizwanul Huda
Director
Mr. Rizwanul Huda is serving as a Deputy secretary at Financial
Institutions Division, Ministry of Finance, Bangladesh Secretariat.
He was appointed as a member of the Board of Directors of the
Bank on 02 February 2018.
During his long span of administrative career he served in different
capacities in the field level and in Bangladesh Secretariat.
Currently, he acts as a Member Secretary of National Working
Committee on Prevention of Money Laundering & Terrorist
Financing. He is also Member of Australian Awards Alumni.
During his career as a administrative officer he attended
numerous trainings, seminars and workshops at home and
abroad. He was trained by prestigious and world famous
institutions of the world. The training covered the magnificent
issues in banking arena such as development, laws, bankruptcy,
management, accounting, auditing, budgeting, financing, Anti-
Money Laundering and Combating the Financing of Terrorism
(AML/CFT), asset management, macro-economic management
& policies, public finance management, financial market,
financial stability, financial inclusion, etc.
Mr. Huda was involved with the preparation of new law and
amendment of existing laws in financial and banking sectors ,the
responsibility rendered by the MOF to prevent money laundering
and countering terrorist financing, financial sector reform,
financial inclusion, negotiations with international organizations
and foreign governments, sovereign credit rating etc
Mr. Huda completed his B. Com(Hons), M. Com in Finance
from University of Dhaka. He also obtained M.S in Government
Financial Management (UK).
He visited India, Malaysia, Thailand, U.S.A., U.K., Singapore,
South Korea, Australia, Indonesia, China, Philippines, Japan,
Germany, Netherlands, Belgium, France, Turkey, Norway, U.A.E.,
Mexico, Sri Lanka, Nepal, Ireland, Italy, Russia, Switzerland, etc.
Annual Report 2019 31
 Md. Khalilur Rahman
Director
Mr. Md. Khalilur Rahman is serving as a Director General (Admin)
& Additional Secretary at Prime Minister’s Office, Tejgaon, Dhaka.
He joined as a member of the Board of Directors of the Bank on
6 January 2019.
During his long span of administrative career he served in
different capacities in the field level and in Prime Minister’s
Office. He served as a Joint Director & Director of Prime
Minister’s Office, Deputy Commissioner of DC Office, Gopalgonj,
Deputy Secretary of Ministry of Housing & Public Works and
Deputy Director of RAJUK.
During his career as a bureaucrat he attended numerous
trainings, seminars and workshops at home and abroad. The
training covered the magnificent issues in law & administration,
land management, land survey & settlement, Military training.
He did special training on good governance form India.
Mr. Rahman completed his M.Sc (Ag.) from Bangladesh
Agricultural University, Mymensingh.
Mr. Rahman , son of Md. Siddiqur Rahman and Asia Khanom was
born in Brahmanbaria on 1st january, 1964. He is married with
Selina Akter Lipi.
He visited India and many other countries.
32
Mohammad Delwar Hossain
Director
A successful businessman, Mohammad Delwar Hossain is the
Chairman of Transonic Communication Limited. He joined as a
member of the Board of Directors of the Bank on 23 July 2019.
He is also Chairman of the Board Risk Management Committee
of RBL.
He served as a Representative Dierctor of Prime Finance &
Investemtnt Limited and Prime Bank Limited. He was also
member of Banking Reforms Committee and General body
member of Federation of Banladesh Chamber of Commerce and
Industries (FBCCI). He has been engaged in aviation business for
more than 33 years.
Mr. Hossain completed his post graduation degree (M.S.S) from
Dhaka University.
He was born on 10th March, 1960 in a respectable muslim family
in the District Madaripur.

Mohammad Abdul Baset Khan
Independent Director
Mohammad Abdul Baset Khan, a freedom fighter who actively
participated in our liberation war of 1971 being trained at
Agartala was a former bureaucrat. He is a fellow of GAO, USA
and fellow of CAAF, Canada . Currently, he is the Member of BCS
Audit and Accounts Association and President of Binairchar
Islamic centre complex, Araihazar, Narayangonj. He was the
founder president of Narayangonj officers forum and president
of Araihazer Upazilla Chakrijibi Samaby Samity. He was
appointed as Director at Rupali Bank Limited on 11 January,
2017.
Mr. Baset joined as Assistant Accountant General in 1986 in
BCS Audit and Accounts Cadre. During his long carrier in audit
and accounts he served in different capacities in different
directorates and ministries. He served as Director General at
Railway, PT&T, Works, Local & Revenue and Defence Audit
Directorates, Senior Finance Controller (Navy) of Defence
Finance, Additional FA & CAO of Bangladesh Railway (West),
Chief Accounts officer, Ministry of foreign Affairs and Ministry
of post and Telecommunication, Director of Local & Revenue
Audit, Presenter of C&AG’s Audit reports in the Public Accounts
Committee. His field of interest extends to government financial
management, performance audit, compliance audit, internal
control, internal audit etc. He Achieved Certificate of Excellence
for performance from the Comptroller and Auditor General of
Bangladesh. He worked as national consultant in the UNOPS,
UNDP and World Bank.
He completed Bachelor of Arts (BA Hon’s) and MSS in Political
Science from Dhaka University. He started his career as a
probationer in Sonali bank. He was the trainer of Financial
Management Academy (FIMA), PATC, BIAM. Till now, he is the
author of eleven books. He has publications on a research work
on the Holy Quran, 2 Travelogues, 5 poetry and others on stories,
novels and memoirs.
For professional activities he visited India, USA, UK, Canada,
Belgium, Russia, South Korea, Cambodia, Japan, China,
Sweden, Netherlands, Uzbekistan, Thailand, Myanmar, Greece,
Brazil, France, Luxemburg, Finland, Kuwait, Jordan, Iraq etc.
Rupali Bank Limited
Md. Obayed Ullah Al Masud
Managing Director & CEO
Mr. Md. Obayed Ullah Al Masud joined as Managing Director and
CEO of Rupali Bank Limited on 28 August, 2019. Before that , Mr.
Masud was the Managing Director of Sonali Bank Limited for three
years and Karmasangsthan Bank for two years also.
Mr. Masud graduated with honours in Management from Dhaka
University in 1982 and completed his MBA majoring in Finance from
IBA, the most prestigious business school in the country, in 1988.
He stood first in the IBB Banking Diploma Examination and was
awarded gold medal for his outstanding feat. He also stood third in
the SSC examination.
Mr. Masud has an illustrious banking career. He joined Agrani Bank
as Senior Officer in 1983. Thanks to his dedication to his profession,
coupled with his brilliant academic background, undoubted
integrity and amiable disposition, Mr. Masud rose steadily through
the ranks to become the Deputy Managing Director in 2011 of Agrani
Bank Limited. In his 31-year career in Agrani Bank, Mr. Masud held
a wide range of executive roles as Branch Manager, Divisional Head
and Circle in-charge. In Head Office he oversaw International Trade
Finance, Treasury, Industrial and General Credit. All through his
career, he earned laurels and appreciation from the authority for
his extra ordinary performances in whatever capacity he worked.
Mr. Masud’s banking career has been enriched through various
professional training programs at home and abroad.
Mr. Masud was born on December 10, 1960 in a respectable family
in Nawabgonj, Dhaka. He is married to Mrs. Munmun Masud and is
blessed with two sons and a daughter.
Mr. Masud has been engaged in philanthropic and cultural
activities since long. He is a poet and a number of books under
the pen name Buland Javir were published. He is also a translator
of interview of American poet John Ashbery, essays on Nobel
Laureate Saul Bellow’s and Seamus Heamey. Alongside Rupai
bank Ltd. Mr. Masud is associated with other organizations. He is
director of Padma bank Ltd, Chairman of Rupali Bank Securities
Ltd and Rupali bank Investment Ltd. He also holds the following
ex officio positions at home and abroad: Vice-Chairman, Institute
of Bankers, Bangladesh (IBB); Director, Sonali Exchange Co. Inc.,
New York, USA, Sonali Bank (UK) Limited London, UK, Primary
Dealers Bangladesh Limited (PDBL), Investment Corporation
of Bangladesh (ICB), Sonali Investment Limited (SIL), Sonali
Polaris FT Limited (SPFTL), Central Depository Bangladesh
Limited (CDBL) and Industrial and Infrastructure Development
Finance Company Limited (IIDFC) and Member, Governing Board,
Bangladesh Institute of Bank Management (BIBM) and Executive
Committee, Bangladesh Foreign Exchange Dealers Association
(BAFEDA)
Annual Report 2019 33
COMPOSITION OF BOARD
AND ITS COMMITTEES
As on 31 December 2019

Board of Directors
Mr. Monzur Hossain, MP Director & Chairman

Mr. Arijit Chowdhury Director

Mr. A. K. M. Delwer Hussain, FCMA Director

Mr. Md. Rizwanul Huda Director

Mr. Md Khalilur Rahman Director

Mr. Mohammad Delwar Hossain Director

Mr. Mohammad Abdul Baset Khan Independent Director

Mr. Md. Obeyed Ullah Al Masud Managing Director & CEO

Audit Committee
Mr. Mohammad Abdul Baset Khan Independent Director & Chairman

Mr. Arijit Chowdhury Director & Member

Mr. A. K. M. Delwer Hussain, FCMA Director & Member

Risk Management Committee

Mr. Mohammad Delwar Hossain Director & Chairman

Mr. Arijit Chowdhury Director & Member

Mr. A. K. M. Delwer Hussain Director & Member

Mr. Md. Rizwanul Huda Director & Member

Mr. Md Khalilur Rahman Director & Member

34
 Rupali Bank Limited

TOP MANAGEMENT TEAM

MD. OBAYED ULLAH AL MASUD

Managing Director & CEO

MOHAMMAD JAHANGIR ALAM KHONDOKER ATAUR RAHMAN

Deputy Managing Director Deputy Managing Director

ARUN KANTI PAUL

Deputy Managing Director

Annual Report 2019 35

MANAGEMENT TEAM GENERAL MANAGERS

ASHOK KUMAR SINGHA ROY MOHAMMAD JAHANGIR MD. SHOFIQUL ISLAM

MS. PARSOMA ALAM MD MAZIBUR RAHMAN SANCHIA BINTE ALI

MD. ABDUR RAHIM KHAN IQUBAL HOSSAIN MD. GOLAM MORTUZA

WAHIDA BEGUM MD. SHAWKAT ALI KHAN SALMA BANU

36
 Rupali Bank Limited

MD. ABUL KHAYER SHACHINDRA NATH SAMADDER MD. JAHANGIR RAHMAN AKAND

TAHMINA AKHTER MOHAMMED MOKBUL AHMED YASMIN BEGUM

KAZI ABDUR RAHMAN MD. HARUNUR RASHID MD.AHSAN ULLAH

MD. SHAWKAT JAHAN

KHAN, FCMA
Chief Financial Officer

Annual Report 2019 37

MANAGEMENT COMMITTEE
Senior Management Team (SMT)
Managing Director & CEO Chairman
Deputy Managing Directors Member
All GMs of Head Office Member
Chief Financial Officer (CFO) Member
Deputy General Manager, (Monitoring Division) Member Secretary

Asset Liability Committee (ALCO)

Managing Director & CEO Chairman
Deputy Managing Directors Member
General Manager (Industrial Credit Division) Member
General Manager (General Credit & SME Division) Member
General Manager (InternationalTrade &Planning& ResearchDivision) Member
General Manager (Local Office) Member
Chief Financial Officer (CFO) Member
Deputy General Manager (Treasury Division) Member Secretary

Management Credit Committee(MCC)

Mr. Mohammad Jahangir Alam Deputy Managing Director Chairman
Mr. Md. Shawkat Ali Khan General Manager (General Credit & SME Division) Member
Mr. Md. Shawkat Jahan Khan Chief Financial Officer (CFO) Member
Mr.Md. Abul Khayer General Manager (Foreign Trade Finance & International Division) Member
Khan Iqubal Hossain General Manager (Local Office) Member
Mr. Md. Golam Mortuza General Manager (Industrial Credit Division) Member
Deputy General Manager Related Division Member
Mr. Md. Ismail Hossain Sheikh Deputy General Manager (General Credit & SME Division) Member Secretary

Executive Risk Management Committee

Mr. Khondoker Ataur Rahman Deputy Managing Director Chairman
Mr. Mohammad Jahangir Alam Deputy Managing Director Member
Mr. Arun Kanti Paul General Manager Member
Mr. Md. Mazibur Rahman General Manager Member
Mr. Md. Golam Mortuza General Manager Member
Mr. Md. Shawkat Ali Khan General Manager Member
Mr. Md. Shawkat Jahan Khan Chief Financial Officer Member
Recovery Specialist (DGM) Recovery Division Member
Deputy General Manager Industrial Credit Division Member
Deputy General Manager General Credit & SME Division Observer
Deputy General Manager Financial Administration Division Member
Deputy General Manager Treasury Division Member
Deputy General Manager Risk Management Division Member Secretary

38
 Rupali Bank Limited

DEPUTY GENERAL MANAGERS

As on 31 December 2019

#SL Reg Employee Name #SL Reg Employee Name

1 6821 MD. SHAHID ULLAH SARKER 28 9523 MD.ABUL HASAN

2 9749 KAZI MD. WAHIDUL ISLAM 29 9944 SK. AMINUR RAHMAN

3 9678 MD. MAKSUDUR RAHMAN 30 9928 MASUDA AKHTER

4 9686 MOHAMMED SHAJAHAN CHOUDHURY 31 9896 MOHAMMAD AFZAL HOSSEIN

5 8466 SHOWKAT OSMAN 32 9501 ABDULLAH AL MAHMUD

6 9753 MOHAMMED SHAHEDUR RAHMAN 33 9654 MD. NIZAM UDDIN

7 6933 MD. ROBIUL HOQUE BHUIYAN 34 9621 MD. MANIR HOSSAIN

8 8444 UTTAM KUMAR PAL 35 9871 MOHAMMAD SAFAYET HOSSAIN

9 8430 UZZAL KUMAR DEY 36 9566 MONOARA PARVIN

10 9673 MD. IQBAL HOSSAIN KHAN 37 9952 S. M. ROKONUZZAMAN

11 9716 SIKDER FARUK A AZAM 38 9946 MD. TAJUDDIN MAHMUD

12 9707 MD. FOKHRUL HASAN 39 9878 UTPAL KABIRAJ

13 9740 MD.ISMAIL HOSSAIN SHEIKH 40 9887 ABU NASER MOHAMMED MASUD

14 9751 MD. FAYAZ ALAM 41 9900 MOHAMMAD NAJMUL HODA

15 9675 SAYED MD.MONJUR MORSHED ALI 42 9547 AFROJA SULTANA

16 9723 MD. NOMAN MIA 43 9926 MD. MONIR UDDIN BHUIYAN

17 9743 HEMANTA KUMAR DAS 44 9592 ABU YUSUF MOHAMMAD JAKARIA

18 9717 MD. ABDUR RAB 45 9611 S.M. DIDARUL ISLAM

19 9721 MD. MUSTAFIZUR RAHMAN 46 9714 AJIT KUMAR SARKAR

20 9701 MD. MAHMUDUL ISLAM 47 9604 BEGUM KAMRUN NAHAR

21 9730 MD SHAHIDUL ISLAM KHAN 48 9938 MD. AMINUL ISLAM

22 9702 MATILAL FOKIR 49 9662 ASHIM KUMAR SIKDAR

23 9674 SHEIKH MONJUR KARIM 50 9872 MD. QUDDUS MIAH

24 9718 KANIZ FATEMA 51 9579 SHAKHAOYETH HOSSAIN

25 9698 MD. FAZLUL HAQUE 52 9588 MD. JAKIR IBNAE BORAQUE

26 8477 KHAN MD SHAHIDUL ISLAM 53 9709 MD. SHARIFUL ISLAM

27 9646 TAJUDDIN AHAMED 54 9875 BILLKIS ARA

Annual Report 2019 39

DEPUTY GENERAL MANAGERS
As on 31 December 2019

#SL Reg Employee Name #SL Reg Employee Name

55 9930 MD. HABIBUR RAHMAN 77 9544 S.M.ABUL HASAN

56 9950 MD. KAMAL UDDIN 78 9616 MOHAMMOD ABDUL QUADER ZILANY

57 9963 MD.MASUDUL HASAN 79 9583 MD. SHAHJAHAN SHARIF

58 9624 SALAMUN NESSA 80 7084 SAROWAR HOSSAIN

59 9591 JAYA CHOWDHURY 81 9570 MD.MUKHTER HOSSAIN

60 9536 MR. N. M. ALI IMAM 82 6653 MD.MOBIN-OR-RASHID

61 9691 TUMPA AHMED 83 9589 MOHAMMAD AMEER HOSSAIN

62 10045 MOHAMMED KAWSAR MUSTAFIZ 84 9869 MD. NIZAM UDDIN

63 9537 KAMAL BHATTACHARJEE 85 9560 A K M ZAKIR HOSSAIN

64 9923 MD.MONIRUZZAMAN 86 9640 MD. ABDUL MANNAN MIAH

65 9532 MD. KAMAL HOSSAIN 87 9889 MD. SARAWAR HOSSAIN

66 9549 MD. EMAN ALI 88 9543 ZEBU SULTANA

67 9680 MD. HUMAYUN AHMED 89 9599 MD. ABDUL HALIM

68 9631 MOHAMMAD SAIFUL ISLAM 90 9725 TANVIR HASNAIN MOIN

69 9929 A.S.M MORSHED ALI 91 9550 MD. MAHBUBUL EUNUSE

70 9934 PROKASH KUMAR SAHA 92 9637 MUHAMMED MILLAT HOSSAIN

71 9582 ARSHED HOSAIN CHOWDHURY 93 9500 M.M.G.TOFAYEL

72 9529 MD ANISUR RAHMAN 94 9876 MD.ALAMGIR HOSSAIN

73 9886 ROKONUZZAMAN

74 9873 G.M. MONJUR HOSSAIN DGM(IT)

75 9586 MD.MOIN UDDIN (MASUD) 1 10268 MD. RAHMATULLAH SARKER

76 9575 MOHAMMAD SHAJAHAN 2 10269 MOLLA MD. REZAUL KARIM

40
 Rupali Bank Limited

ASSISTANT GENERAL MANAGERS

As on 31 December 2019

#SL Reg Employee Name #SL Reg Employee Name

1 9665 MD. KETAB ALI MONDAL 36 9522 MD. MONOARUL ISLAM

2 6876 MD. SOLAIMAN 37 9862 MD. ELIUS HOSSAIN

3 9581 KAZI MOHIBUR RAHMAN 38 9528 S. M LIAKAT ALI

4 9556 MOSAMMAT MAHBUBA AKTER 39 9868 NAZMUN NAHER

5 12098 MD. KHAERUL HOSSEN 40 9865 SANAT KUMAR SAHA

6 9729 MOHAMMAD ASHRAF HUSSAIN 41 9891 MD. ZAHIDUR RAHMAN

7 9527 RAMESH CHANDRA SIKDAR 42 6938 MD.ALAM HOSSAIN

8 9622 MD.MAHABUB-UL-ALAM 43 9897 MOHAMMAD ABU ZAMAL KHAN

9 9571 MRS. CHINU KARMAKER 44 9530 MD. MAHBUR RAHMAN

10 9649 PRABIR KUMAR CHAKRABORTY 45 9956 MOSHARRAF HOSSAIN

11 9884 MD. MOSTAFA HAMID 46 9945 SAYED MD. FOORKAN

12 9645 MD. SOWKAT HOSSAIN 47 9628 MD.JAMAL ABU NASER

13 10047 MD. GOLAM NOBY 48 9613 MD .SELIM UDDIN

14 9638 MAKSUDUL HASAN 49 9533 MD.KAZI AMDADUL HOQ

15 9635 MD. HAIDAR ALI 50 9561 S.A.K.M ZAKIR HOSSAIN

16 9512 MD.MOTALEB HOSSAIN TALUKDER 51 8156 MD. IMDADUL HAQUE

17 9955 BAYAZID MOLLAH 52 9594 MD.KAMRUZZAMAN

18 9924 MUHAMMAD JAHANGIR 53 9658 MOHAMMAD MONWAR HOSSAIN

19 9863 MD. ZAKIR HOSSAIN BABLU 54 9596 MD. SALIM

20 9739 MD. FAZLUR RAHMAN CHOWDHURY 55 9580 MD. MUJIB ALAM

21 9521 RUPAK KUMAR RAKSHIT 56 9618 S.M.WAHIDUZZAMAN

22 9858 S.M. BURHAN UDDIN 57 9606 MD. ABU TAHER PRODHAN

23 9595 MD. MONIRUL HAQUE 58 9948 SABIHA SULTANA

24 9559 TARA PADA ROY 59 9639 MD. NASIR UDDIN HALDER

25 9943 ABDUL BARAKAT 60 9587 MOHAMMAD SOFIQUR RAHMAN PATOARY

26 9668 DEBABRATA SAHA 61 9619 GOLAM MOHAMMAD MAHIUDDIN DASTAGIR

27 9657 MD. MONJUR HOSSAIN 62 9953 KAMRUL HASAN

28 9937 MD.FARHAD HOSSAIN KHAN 63 9562 MD GOLAM MOWLA

29 9590 SK.KAMAL UDDIN AHMED 64 9598 PANKOJ KUMAR SARKER

30 9648 MD. RASHEDUL ISLAM 65 9664 MOHIT LAL CHAKRABARTY

31 9629 MD. SHAFI UDDIN 66 9632 MD.MASUK-E-ELAHI

32 9859 BIPUL KRISHNA SANNAMAT 67 9870 NAZNIN SULTANA

33 9520 KAZI MOHAMMED GOLAM MOSTOFA 68 9602 MD. AHIDUZZAMAN

34 9895 MD.SHAHIDUR RAHMAN 69 9584 MD.MIJANUR RAHMAN

35 9651 NISHA RANI DATTA 70 9564 HASINA SULTANA

Annual Report 2019 41

ASSISTANT GENERAL MANAGERS
As on 31 December 2019

#SL Reg Employee Name #SL Reg Employee Name

71 9620 MD. SHAFIQUL ISLAM 105 9912 ABU SAYED MD.MOSTOFA

72 9954 MD. ABDUL QUDDUS 106 9981 SANJAY KUMAR SIKDER

73 9874 S.M. JONAYED HASSAN 107 9444 MD. SAFIQUL ISLAM

74 9781 SHAHNAJ MEHBUBA 108 9818 YASMIN ARA

75 9992 MS. SHAHREEN BAZAL 109 10011 MD. ASGAR HOSSAIN

76 9585 SALAH UDDIN AHMED 110 9802 GULSHAN-ARA-BEGAME

77 9835 SELIMA BEGUM SHIRIN 111 9904 MOHAMMAD SHAHIDULLAH

78 9776 JANNATUN NAHAR BEGUM 112 9852 MD.MASUDUR RAHMAN

79 10009 ABU NASER MD. REAZUL HAQUE 113 10020 MD. SAHAD ALI

80 9977 MD. SHAFIQUR RAHMAN 114 9915 Md. AMINUL ISLAM

81 9986 MOHAMMAD RAFIQUL KARIM 115 7673 NAZMA SHAHINE

82 10013 MOHAMMAD AHSAN ULLAH 116 9652 SHAIKH ALAUDDIN HOSSAIN

83 10019 MOHAMMAD SAHIDOLLAH 117 9994 MD IMDADUL ISLAM NOORANI

84 10029 MD. ABDUR RAHMAN 118 10043 SWAPAN KUMAR SARKAR

85 9783 MD. ASHADUZZAMAN 119 9787 MD. IQBAL HOSSAIN

86 9833 A.S.M ZIAUR RAHMAN 120 9903 MD. SARWAR HOSSAIN

87 9804 RAHAMAT ULLAH AHMED CHOUDHURY 121 9840 SWAPNA CHAKRABORTY

88 9608 BIPLAB KUMAR TALUKDER 122 9503 MOHAMMAD MANSOOR ALAM

89 9838 MD. JAHIR RAYHAN 123 9989 NUSRIN SULTANA

90 9193 MD. YOUSUF HARUN KHAN 124 9663 MD.RAFIQUL ISLAM

91 9136 FAKRUDDIN AHAMED KHAN 125 9220 MST.FERDOUSI ARA BEGUM

92 9811 MD.SHAFIQUL ISLAM 126 9574 MD. MARIFUL ISLAM

93 9796 MD. REAZ HOSSAIN KHAN 127 9069 MOST. FERDOUSI ARA

94 10061 BIJAN BHOWMIK 128 9984 RUPIA PARVIN

95 9789 MD. ABDUL MOTALEB HOSSAIN PRAMANIK 129 10028 MOLLA GOLAM FARUK

96 9972 QUAMRUNNASA 130 9909 MD.MIZANUR RAHMAN

97 9176 FERDOUSI BEGUM 131 9978 SELINA AKHTER JAHAN

98 10040 MD. REJAUL KABIR KAUCHERY 132 9814 MD. NAZIM UDDIN

99 10039 MOHAMMAD QUAMRUZZAMAN 133 9335 MD. MONTAZUL ISLAM

100 10041 F.M. ENAMUL HUQUE 134 9918 MD. ABDUR RAZZAQUE

101 9851 MD. MOTIUR RAHMAN 135 6939 SYED AHMED RABIUL ISLAM

102 10001 KAZI ANISUL HAQUE 136 9922 MD. HAMIDUL ISLAM

103 9794 MAFIA BEGUM 137 8581 MD. MIZANUR RAHMAN

104 9837 SANKAR KUMAR DAS 138 10032 S M ALAMGIR HOSSAIN

42
 Rupali Bank Limited

ASSISTANT GENERAL MANAGERS

As on 31 December 2019

#SL Reg Employee Name #SL Reg Employee Name

139 8942 SYED AZAD HOSSAIN 160 9976 MD. HASAN SAYEED KHAN

140 9846 MD. MAMUNUR RASHID MULLAH 161 9905 MOHAMMAD TOUHEDUL ISLAM

141 9777 FAIZA AKTER 162 9655 NUR MOHAMMAD

142 9815 MD. MOZAMMAL HOQUE 163 9836 MD. AHSANUL KABIR

143 9221 NOOR-E-AKTER 164 9919 MD. HARUN-AR-ROSHID

144 9843 MOSTOFA ANWAR 165 9913 MOHA. MAHMUD-UN-NABI

145 9784 SYED HUMAYUN KABIR 166 9805 SK. TAHMINA AKTHER

146 10003 MOHAMMED SHAHADAT HOSSAIN PATWARY 167 9998 S M ALI AKBAR

147 9819 MD. ABU BAKAR SIDDIQUE 168 9797 MANASHI DATTA

148 9788 RUKAN AHMED LIKHAN 169 9921 REJAUL MOSTAFA MOHAMMAD ASMAS UD DOULA

149 9442 MD. ZAHIRUL ISLAM 170 9995 DM.LUTFOR RAHMAN

150 9377 MD. NAZRUL ISLAM 171 9577 SABBIR AHMED KHAN

151 9650 SWAPAN KUMAR BEPARY 172 9391 MD SAMSUL ALAM

152 10064 KAMAL UDDIN AHAMED 173 9504 MR.S.M.SAZZAD AMIR

153 9916 Dulal Chandra Das 174 9999 MD . MONZURUL ISLAM

154 8610 MD. NURUL AMIN

155 10015 KAZI JAHIRUL ISLAM AGM(IT)

156 9617 ANUP KUMAR BHADRA 1 10896 MOHAMMAD ABDUR RAZZAK

157 9816 MD. JAMAL UDDIN 2 10935 MUHAMMAD ARIFUZZAMAN SARKER

158 9829 SALMA EASMIN 3 10934 MD. SOHEL REZA

159 8849 TAHMINA BEGUM

Annual Report 2019 43

 44
ORGANOGRAM-2019

RUPALI BANK LIMITED Audit Committee

CHAIRMAN (Headed by Directors)
Board of Directors
Risk Management Committee
All Directors (Headed by Directors)
MANAGING DIRECTOR
& CEO
Board Secretariat MD Secretariat

Deputy Managing Director-2 Deputy Managing Director-1 Deputy Managing Director-3

General General General General General General General Manager

Manager 1 Manager 2 Manager 3 Manager 4 Manager 5 Manager 6 (Local Office)

HEAD Office
1. Admin & Human Resource Division 6. Discipline & Appeal Division 11. Establishment & Welfare Division 16. ICT Systems Division 21. Management Information Division 26. Public Relation Division
2. Personnel Management Division 7. Company Affairs & Share Division 12. Engineering Division 17. ICT Operations Division 22. Mobile Banking Division 27. Reconciliation Division
3. Anti-Money Laundering & Combating 8. Compliance Division 13. Estate Division 18. GCD & SME Division 23. Marketing Division 28. Recovery Division-1
Terrorist Financing Division 14. Financial Administration Division 19. Industrial Credit Division 29. Recovery Division-2
9. Credit Administration Division 24. Monitoring Division
4. Audit & Inspection Division-1
10. Planning & Research Division 15. Foreign Trade Finance & 20. Law Division 25. Vigilance & Intelligence Division 30. Risk Management Division
5. Audit & Inspection Division-2 International Division

31. Remittance Division 36. General Banking Division

32. Treasury (Front Office) Division 37. Rupali Bank Training Academy
(RBTA)
33. Treasury Operation
(Back Office) Division
34. Agricultural, Rural & Micro Credit Division
35. Secuirity Division
 Divisional Offices

GM GM GM GM GM GM GM GM GM GM
Dhaka North Dhaka South Chattogram Mymensingh Cumilla Rajshahi Rangpur Khulna Barishal Sylhet

DGM, Zonal Office, DGM, Zonal Office, DGM, Zonal DGM, Zonal DGM, Zonal DGM, Zonal
DGM, Zonal Office, DGM, Zonal Office, DGM, Zonal Office, DGM, Zonal Office, Office, Barishal Office, Sylhet
Chattogram East Mymensingh Cumilla Office, Rangpur Office, Khulna
Dhaka North Dhaka South Rajshahi

Amir Market Corp. Br Netrokona Corp. Br. Bagerhat Corp. Br. Sadar Road Corp. Br., Islampur Corp. Br.
Dhaka Cant. Corp. Br Jhonson Road Monoharpur Corp. Br. Chapainawabganj G. L. Roy Road Barishal
Corp. Br Chandgaon Corp. Br Corp. Br. Corp. Br.
Kishoregonj Corp. Br Brahmanbaria Corp. Br Laldighirpar Corp. Br.
Joydebpur Corp. Br Natore Corp. Br. Satkhira Corp. Br Bhola Corp. Br
Rupali Sadan Chotto Bazar Corp. Br. Cumilla Cant. Corp. Br. NIlphamari Corp. Br. Mirabazar Corp. Br.
Manikgonj Corp. Br Corp. Br, Chattogram Sadar Rd. Corp. Br.,
DGM, Zonal Office, DGM, Zonal Office, Pirojpur Corp. Br. Sunamgonj Corp. Br.
Rajgonj Corp. Br. Naogaon Gaibandha Corp. Br.
Dhaka Central Rupali Sadan Kushtia
TCB Bhaban Corp. Br DGM, Zonal Office, Jhalkathi Corp. Br
Corp. Br, Cox’sBazar DGM, Zonal
Jamalpur DGM
Uttara Model Town Corp. Br Bandarban Corp. Br. Meherpur Corp. Br. Office,
Dhanmondi Corp. Br Zonal Office,
Terribazar Corp. Br. DGM, Zonal Lalmonirhat DGM, Zonal Moulvibazar
Nayapaltan Corp. Br Jamalpur Corp. Br.
DGM, Zonal Office DGM, Zonal Office, Office, Bogra Kushtia Corp. Br. Office, Patuakhali
Narayangonj Sherpur Town Corp. Br. Noakhali Lalmonirhat Corp. Br. Habiganj Corp. Br.
DGM, Zonal Office,
Joypurhat Corp. Br Chuadanga Corp. Br.
Chattogram West
Lakshmipur Corp. Br. Kurigram Corp. Br. Patuakhali Corp. Br. Chowmohana
DGM, Zonal Office, Thana Road Corp. Br.
Munshigonj Corp. Br. Corp. Br.
Foreign Exchange Bibirhat Corp. Br. Tangail Maijdee Court Corp.Br. DGM Barguna Corp. Br.
DGM, Zonal
Corp. Br. Zonal Office, Market Corp. Br.
Tanbazar Corp. Br. DGM, Zonal Office, Jessore
New Market Corp. Br. Tangail Corp. Br. DGM, Zonal Dinajpur
Narshinngdi Corp. Br. Motijheel Office, Pabna
Corp. Br. Saltgola Corp. Br. Office, Feni
Pancha garh Corp. Br. Magura Corp. Br.
DGM, Zonal Office Station Road Corp. Br. Sirajgonj Corp. Br.
Ramna Feni Corp. Br. M. K. Road Corp. Br.
Faridpur Pabna Corp. Br. HSTU Corp. Br.
Corp. Br. Rangamati Corp. Br.
Faridpur Corp. Faridpur DGM, Zonal Office, Nimtala Corp. Br. Narail Corp. Br.
Rupali Sadan Rajshahi Corp. Br.,
Agrabad CHandpur
Gopalgonj Corp. Br Corp. Br. Rajshahi Thakurgaon Corp. Br.
Corp. Br. Jhenaidah Corp. Br.
Madaripur Corp. Br
Mitford Road O. R. Nizam Natun Bazar Corp. Br. Daulatpur
Rajbari Corp. Br. Corp. Br. Road Corp. Br. Corp. Br.
Shariatpur Corp. Br.
Shams Bhaban
Gulshan Corp. Br Summary set up of Head Office & Field Existing Nos. of Offices Existing Nos. Corp. Br.
(As on 31.12.19)
Summary of Posts approved in 2016
Offices approved in 2016 & afterwards of Employees
Purana Paltan Corp. Br & afterwards (As on 31.12.19)
Categories of Offices Offices Branches Offices Branches
S. K Road Corp. Br., 3 Designations
Designations Posts Posts
Head Office Divisions 39 38 1
Narayangonj INDIACTORS
110 Managing Director & CEO 01 01
Mirpur Corp. Br., Divisional Offices 10 3
Deputy Managing Directors First tier Offices/Branches Under
Dhaka 03 03
2 Divisional Offices Jurisdiction
Zonal Offices 30 27 General Managers 21 21
01 Second tier Branches Under
Local Office 01 Deputy General Managers 106 96
Zonal Offices Jurisdiction
CorporateBranches - 1 20 14 Assistant General Managers 197 177
Corporate Branches- 2 90 79 Senior Principal Officers 809 684
Urban Branches- 1 125 121 Principal Officers 1233 970
Urban Branches- 2 180 149 Senior Officers 3289 1235
Rural Branches - 1 100 93 Officers 4209 712
Rural Branches - 2 200 115 Contractual (From GM to SPO level) 10 03

Annual Report 2019

Rupali Bank Limited

TOTAL = 716 572 Staffs–Class III 2911 804

Staffs–Class IV 2120 931

45
TOTAL = 14909 5641
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Annual Report 2019 47
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CHAIRMAN’S LETTER
TO STAKEHOLDERS
DRAWING INSPIRATION FROM THE MOMENTOUS LEGACY OF BANGABANDHU WHO DEVOTED HIS
LIFE TO PUBLIC SERVICE, ON THE HISTORIC OCCASION OF HIS 100TH BIRTH ANNIVERSARY, WE RE-
DEDICATE OUR COMMITMENT TO CHAMPIONING INITIATIVES FOR OUR CUSTOMERS THAT FURTHER
THEIR FINANCIAL SECURITY AND WELFARE.
AS WE GROW FROM STRENGTH TO STRENGTH, WE WILL CONTINUE TO INVEST TO MAKE AN IMPACT
IN THE COMMUNITIES WE SERVE AND WORK TIRELESSLY TO REALISE THE GLORIOUS POTENTIAL
OF BANGLADESH, AS ENVISIONED BY BANGABANDHU.
CELEBRATING MUJIB BORSHO
The year 2020 marks a special year for Bangladesh and
for Rupali Bank. Bangladesh celebrates Mujib Borsho, the
centennial birth anniversary of Bangabandhu Sheikh Mujibur
Rahman, the legendary Bengali who galvanized the country
into action with his grace, wisdom and magnetism. His
manifesto for change resonated with the masses and led to
the emancipation of Bangladesh as a glorious free nation
on 26th March, 1971. At Rupali Bank, we salute the spirit of
Bangabandhu and commit ourselves to live by his ideals and
work relentlessly with our Government to uplift economic
standards and take our country towards the path of secure and
sustainable progress.
Bangladesh is the land of agriculture and the sector provides
vast swaths of people with meaningful and dignified
employment. We have developed our living standard gradually
by inventing new technologies. In this realm, though agriculture
has come a long way, there are still many challenges to
conquer, especially relating to farm mechanisation and crop
yield. Similar to agriculture, yet another sector that supports
large-scale employment in the country is the CMSME sector.
This grouping is a magnet for semi-skilled talent and a key
constituent of the economic composition. At Rupali Bank, we
understand that these large sectors have an influential impact
especially on the grassroots economy. Serving these segments
with financial products and solutions is aligned with our core
purpose of making a difference in the lives of the low-income
communities, while it also directly impacts our objectives in
financial inclusion. Hence, on the occasion of Mujib Borsho,
we commenced such grassroots-facing initiatives as providing
interest-free loans for tomato cultivation, thus encouraging the
sowing of this important crop variety. We also enhanced credit
disbursement for promoting the processing of milk byproducts
that not only support growth amongst these businesses, but
also enable them to contribute to meeting the health and
dietary requirements of the masses.
Going forward, we will continue to identify scalable opportunities
in both the agriculture and M/SME sectors, thus also playing our
Rupali Bank Limited
–MONZUR HOSSAIN, MP, CHAIRMAN
role in furthering the Government’s expectations of boosting the
prospects of these sectors.
A JOURNEY THROUGH TIME
At Rupali Bank, we have played our humble role over the years
in contributing to the growth and development of Bangladesh.
Conceived as a people’s bank, we have remained committed
to fulfilling our public mandate of being a steadfast financial
institution that has earned the trust of its customers and
stakeholders. The hard work of past and present co-workers
in cultivating long-lasting relationships with our stakeholders
over the last 34 years have culminated in Rupali Bank being
recognised for trust, transparency and dependability. Indeed,
we have been able to foster a deep, meaningful and sustainable
impact on the Bangladeshi society, working hand-in-hand
with the Government in contributing to the socio-economic
transformation of the nation.
In this journey of growth and in serving many generations of
customers, what has remained clear is Rupali Bank’s sense of
purpose. The vision and intent of our founding fathers was to
make financing accessible to all, and Rupali Bank of that era
accomplished that mission. Today, Rupali Bank aims to do
the same, but with a refined mission of humanizing financial
services. This is a constant reminder to all our co-workers that
our business is one that essentially deals with the aspirations
and desires of our customers, however small these may be.
Enabling our customers and stakeholders to realise their
aspirations and desires is what we strive for every day and, in
doing so, engage in the ideals of Bangabandhu who envisaged a
life of opportunity and dignity for all.
PROGRESSING TOWARDS EMBRACING THE DIGITAL
ECONOMY
In preparing ourselves for the digital economy, we are focusing
on remaining relevant by strengthening our focus on our
customers by offering them products based on their evolving
needs and having the right infrastructure and talent to support
the development of these products and services.
Annual Report 2019 49
For us, being the digital bank of choice goes much beyond
launching services online. It encompasses analyzing customers’
behaviors and needs, and then delivering solutions to address
the demand. We believe this ensures our continued relevance
and applicability to our customers, especially communities
that are unbanked. Importantly, digital banking enables us
to meet our overarching purpose of financial inclusion and
intermediation.
I am proud of the fact that Rupali Bank is the first among all
commercial state-owned banks to provide mobile financial
services (MFS) in the country, closely aligned with the
Government’s ambitions in Digital Bangladesh to make banking
facilities accessible to and affordable for all citizens, comprising
even the marginalized and under-privileged groups. Since the
commencement of our MFS operations under the brand banner
of ‘Rupali Bank SureCash’, we have been able to work with the
Government to ensure that formal banking services reach the
farthest and remotest corners of the country. This year the bank
has successfully disbursed about Tk 1300 crore as primary
education stipend among 1.30 crore beneficiary mothers account
of 1.50 crore students from 70,000 schools around the country. For
instance, Rupali Bank Surecash is entrusted with the responsibility
of collection of tuition and exam fees, etc., from students of more
than 1,200 schools, colleges and other educational institutions.
Besides, many businesses in the insurance, NBFI, ride-sharing
and other services also use our MFS platform for disbursement of
salaries and allowances to their employees and also for collecting
dues from their customers.
Aside from investing in product development and the necessary
architecture, we are also investing in our people to ensure that
they are ready for the digital economy. We have introduced
digital up skilling programs to increase employees’ digital
literacy and ensure workforce futurization, while also creating
awareness among our people about the application of new
technologies to business, how data analytics can be applied
to decision-making, how to engage customers quickly and
effectively, as well as understanding and managing risk in the
digital economy.
PRESERVING OUR CULTURE OF GOVERNANCE AND
COMPLIANCE
At Rupali Bank, our compliance culture was strengthened
through a number of initiatives, such as enhancing staff
awareness about policy circulars issued from time to time,
adhering to our code of ethics and conduct, and incorporating
risk and compliance processes for all employees, etc. So far we
have seen an increase in awareness on compliance and we are
pleased with the progress made, yet there is always room for
improvement.
In 2020, we will continue our efforts to raise awareness and
monitor compliance more effectively. Financial institutions
are required to engage in an Annual Performance Agreement
(APA) with the Finance Division of the Ministry of Finance
every year. Rupali Bank also conducted its APA in 2019 and
achieved a rating of 82.29%. The Bank also entered into a MoU
with Bangladesh Bank (BB) and complied 100% with different
clauses, like ceiling on adjusted loan growth, Govt. decision
regarding interest rates, liquidity and fund management, credit
concentration, digitisation of payment infrastructure/system,
etc. Further, compliance status of cash recovery from classified
and from cumulative written-off loans has been partially
achieved as well.
50
INVESTING IN OUR PEOPLE
We recognize that our people are crucial to the sustainability of
our operations and for the effective execution of our strategies.
In 2019, enhancing productivity and efficiency remained the key
thrust areas of our human resource strategy.
To ensure market competitiveness, our human resource team
looked into initiatives to improve employee recognition and
solicit feedback from staff on the Bank’s areas of strengths and
opportunities. Further, we continue to engage our colleagues
and co-workers in meaningful dialogue, gaining valuable
insights into how we can do better with a view to ensure that
we sustain a focused, productive and loyal workforce, while also
ensuring that we minimize attrition. The year also witnessed
several new skills development initiatives being introduced,
including those that enhanced the sense of teamwork and
enabled our people to achieve their professional ambitions.
The Bank also arranged in-house and external training
programs to enrich skills of its officers and staff on regular
basis. In 2019, Rupali Bank Training Academy arranged 102
training programs in which 3,663 participants received training.
Moreover, 145 participants attended diverse training courses in
different training institutions, like Bangladesh Institute of Bank
Management (BIBM) and others. Also, 149 trainees underwent
foreign training on different courses in India, Malaysia, UAE,
Singapore and others countries. Further Sahitta and Sangskrity
Parisad and Krira Parisad are two arms of our Bank. While RBL
Sahitta and Sangskrity Parisad arranges cultural programs
on national and historical days. RBL women’s cricket team
titled runner-up in the Bangladeh Premier Cricket League and
RBL boys cricket team played in 2nd division cricket league of
Bangladesh. RBL Krira Parisad also arranges annual sports each
year for our employees.
A PERIOD OF CAUTION AND VIGILANCE
The year ahead is being shaped by significant developments
in the operating environment, both globally and domestically,
unleashed by Covid-19, a pandemic that is having far-reaching
economic consequences. Because of the virulence, in a marked
departure from the relatively optimistic start in 2019, the global
economy is set to enter a period of decelerating growth, with
continued volatility in the financial markets.
Domestically, the unprecedented response of Government
entails new fiscal, economic and reform priorities. Amidst these
structural shifts that are continuing to unfold, the Bangladeshi
economy remains resilient, supported by strong long-term
fundamentals and policy flexibility. The Government of
Bangladesh announced consolidated stimulus package to over
BDT 1 Trillion. The size of this relief package is almost 3.7% of
the national GDP and is among the largest in Asia. At Rupali
Bank, we foresee a substantive opportunity in this financial
aid program, considering our well-established mobile financial
services platform and our deeply entrenched network in semi-
urban and rural Bangladesh. As an open economy with an
internationally-integrated financial system, Bangladesh will
also be affected by Covid 19 pandemic economic crisis. In this
environment of heightened risk, the focus of Rupali Bank’s
policy will be on preserving financial stability and protecting
capital buffers. The Bank will continue to strive to identify and
manage risks before they become de-stabilizing, while building
fiscal space and buffers.

NOTE OF APPRECIATION
As I close this letter, I would like to express my sincerest gratitude
to all our stakeholders that the Bank impacts, both directly and
indirectly. Your expectations for us to always improve and do
better is what drives us as an organisation.
To the more than 5,600 co-workers, allow me to salute you for
your unflinching commitment and dedication that has resulted
in the organisation’s continued success in 2019. On behalf of the
Board, we extend our deepest appreciation for your individual
and collective contributions in helping us remain as a people’s
bank of choice. I also extend a special thanks to our Bank’s
frontline staff who continue to selflessly serve our customers
through the Covid-19 induced lockdowns. Thank you!
To my fellow members on the Board, I also acknowledge your
ongoing counsel and guidance.
To all our customers and shareholders, my heartfelt appreciation
for your continuous support, trust and loyalty towards the
Rupali Bank Limited
organisation. We constantly aim to improve and deliver
sustainable value to all, be it in service or returns. We hope you
remain with us on our long-term journey to create better value
for Rupali Bank in the times to come.
And lastly, I extend my gratitude to the Government of
Bangladesh, our majority shareholder, and Bangladesh Bank,
our regulator, for extending their unstinted cooperation. We look
forward to your support now and well into the future too.
Rupali Bank will remain steadfast in serving our public mandate
with uncompromised standards of integrity, ethics and
professionalism.
With my best wishes,
Monzur Hossain, MP
CHAIRMAN
Annual Report 2019 51
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Annual Report 2019 53
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54
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n‡q‡Q| e¨vs‡Ki mKj kvLvq RTGS I BEFTN †mev cÖ`vb Kiv n‡”Q|
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Point ¯’vc‡bi gva¨‡g mKj kvLv‡K BACH Kvh©µ‡gi AvIZvq Avbv
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Ab¨vb¨ Kg©Pvix wb‡qvM Kiv n‡q‡Q|
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Av‡qvRb Kiv n‡q‡Q| 2019 mv‡j iƒcvjx e¨vsK †U«wbs GKv‡Wwg (RBTA)
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wbe©vnx I Kg©KZ©v‡K †cÖiY Kiv nq|

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(MCR) Gi cwigvb 2481.76 †KvwU UvKv, Capital to Risk Weighted
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D³ MvBW jvBb Abymv‡i Buffer gyjab msiÿY Kiv hvq bvB| BASEL III
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UvKvi mve AwW©‡bU-eÛ Bmy¨ Kiv n‡q‡Q|
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2017 I 2018 mv‡j e¨vsK m¤§vwbZ †kqvi‡nvìviMY‡K jf¨vsk wn‡m‡e
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cwiPvjbv cl©` evsjv‡`k e¨vs‡Ki Aby‡gv`b mv‡c‡ÿ 5% ÷K wWwf‡WÛ
cÖ`v‡bi cÖ¯Íve †i‡L‡Q|
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e¨vsK kvLvi msL¨v e„w× K‡i P‡j‡Q| e¨emvwqK w`K †_‡K m¤¢vebvgq †`‡ki
wewfbœ ¯’v‡b 2017 mv‡j 1wU Ges 2018 mv‡j 5wU bZyb kvLv †Lvjv nq|
GiB avivevwnKZvq 2019 mv‡jI †`‡ki wewfbœ ¯’v‡b 5wU bZyb kvLv †Lvjv
n‡q‡Q| eZ©gv‡b e¨vs‡Ki †gvU kvLvi msL¨v 572wU| Zb¥‡a¨ 287wU kni I
285wU cwjø kvLv| gywRe kZel© Dcj‡ÿ¨ e¨vs‡Ki †køvMvb n‡jv t-
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bv‡g e¨vs‡Ki 2wU mvewmwWqvwi †Kv¤úvwb K¨vwcUvj gv‡K©‡U Zv‡`i Kvh©µg
cwiPvjbv Ki‡Q| 2019 mv‡j gvwR©b FY I wbR¯^ †cvU©‡dvwjI‡Z iƒcvjx
Bb‡f÷‡g›U wjwg‡U‡Wi wewb‡qv‡Mi cwigvY h_vµ‡g 21.20 †KvwU
I 100.18 †KvwU UvKv| 2019 mv‡j iƒcvjx Bb‡f÷‡g›U wjwg‡U‡Wi
cwiPvjb gybvdv 3.65 †KvwU UvKv Ges iƒcvjx e¨vsK wmwKDwiwUR
wjwg‡UW 3.46 †KvwU UvKv cwiPvjb gybvdv AR©b K‡i‡Q|
cwjø FY
cwjø GjvKvq `vwi`ª `~ixKiY I RvZxq Drcv`b e„wׇZ FY weZiY Kiv
n‡q‡Q hvi g‡a¨ 2019 mv‡j weZi‡Yi cwigvY 393.00 †KvwU UvKv|
GQvov `y» Drcv`b I K…wÎg cÖRbb Lv‡Z evsjv‡`k e¨vs‡Ki cybtA_©vq‡b
4.00 †KvwU UvKv FY weZiY Kiv n‡q‡Q|
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I cÖvwZôvwbK Dfq ch©v‡q e¨vsK KZ©„K 2010 mv‡j †_‡K wmGmGgB FY
weZiY Kiv n‡”Q| Gi d‡j GKw`‡K ÿz`ª I gvSvwi D‡`¨v³v m„wó n‡”Q,
Acic‡ÿ LÛKvjxb I ¯’vqx Kg©ms¯’v‡bi e¨e¯’v Kiv m¤¢e n‡”Q| GQvov
gwnjv D‡`¨v³v‡`i Rb¨ i‡q‡Q AMÖvwaKviwfwËK wmGgGmGgB F‡Yi myweav|
†`‡ki A_©bxwZ I Kg©ms¯’v‡b iƒcvjx e¨vsK wmGgGmGgB †cvU©‡cvwjI‡Z FY
weZiY K‡i D‡jøL‡hvM¨ f‚wgKv ivL‡Q| 2019 mv‡j wmGgGmGgB FY eve`
e¨vsK 1040.75 †KvwU UvKv FY weZib K‡i‡Q| gwnjv D‡`¨v³v‡`i Drmvn
cÖ`v‡bi Rb¨ AMÖvwaKvi wfwˇZ 2019 mv‡j 627 Rb gwnjv D‡`¨v³v‡`i
gv‡S 47.63 †KvwU UvKv FY weZiY Kiv n‡q‡Q|
Af¨šÍixY wbqš¿Y I SuzwK e¨e¯’vcbv
evsjv‡`k e¨vs‡Ki MvBWjvB‡bi Av‡jv‡K e¨vs‡Ki Af¨šÍixY wbqš¿Y
MvBWjvBb cÖYqb Kiv n‡q‡Q| D³ MvBWjvBb Abyhvqx B›Uvib¨vj K‡›Uªvj
GÛ Kgcøv‡qÝ BDwbU-Gi Aaxb AwWU I B݇cKkb wefvM, Kgcøv‡qÝ
wefvM I gwbUwis wefvM Zv‡`i Dci Awc©Z `vwqZ¡ cvjb Ki‡Q| Af¨šÍixY
wbqš¿Y I cwicvj‡b GKRb Dc-e¨e¯’vcbv cwiPvjK †nW Ad B›Uvib¨vj
K‡›Uªvj GÛ Kgcøv‡qÝ wnmv‡e KvR K‡i hv‡”Q| cwiPvjbv cl©‡`i AwWU
KwgwU Af¨šÍixY wbqš¿Y I cwicvjb GB wel‡q cÖ‡qvRbxq w`K wb‡`©kbv
cÖ`vb K‡i _v‡K|
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e¨vswKs Kvh©µ‡gi bvbvwea SzuwK wPwýZ K‡i Zv wbim‡bi cÖ‡qvRbxq e¨e¯’v
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Avw_©K AšÍf©yw³ I wkÿvq Avw_©K Ae`vb †Kvi e¨vswKs Gi AvIZvfy³|
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Kvh©µ‡gi g‡a¨ cwi‡ek m‡PZbZv‡K AšÍf©y³ K‡i‡Q| wkíLv‡Z A_©vq‡bi
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cwicvjb eva¨Zvg~jK K‡i‡Q| e¨vs‡Ki 6wU kvLvq †mvjvi c¨v‡bj ¯’vcb
Kiv n‡q‡Q| KvMR e¨env‡i wbf©ikxjZv `~i Ki‡Z A‡Uv‡gkb Kvh©µg
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hš¿mn mKj h‡š¿i AcÖ‡qvRbxq e¨envi eÜ Ges mwVKfv‡e Shut Down
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Annual Report 2019 55
wMÖb e¨vswKs wel‡q wewfbœ †Uªwbs/IqvK©kc/†mwgbvi/m‡PZbZv e„w×g~jK
Kg©m~Pxi Av‡qvRb Kiv n‡q‡Q hv‡Z e¨vs‡Ki Kg©KZ©v-Kg©Pvix I MÖvnK
AskMÖnY K‡ib| wMÖb dvBb¨vw›ms cÖ‡R‡±i AvIZvq 2019 mv‡j F‡Yi
cwigvY 677.00 †KvwU UvKv‡Z DbœxZ n‡q‡Q|
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M‡elYv I Dbœqb, cwi‡ek iÿv, †UKmB Dbœqb cÖe„w× Ges gyw³hy‡×i
†PZbv weKvkmn wewfbœ †ÿ‡Î Aby`vb/Avw_©K mnvqZv cÖ`vb Kiv n‡q _v‡K|
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56
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Annual Report 2019 57
MESSAGE FROM
MANAGING DIRECTOR & CEO
THINKING AHEAD ON BEHALF OF AND IN SUPPORT OF OUR STAKEHOLDERS IS CORE TO US, GIVEN
OUR ENTREPRENEURIAL ORIGINS IN SERVING THE INTERESTS OF THE NATION. AS WE START
THIS NEW DECADE, RUPALI BANK, AS A LONG-RUNNING STATE-OWNED COMMERCIAL BANK OF
BANGLADESH, REAFFIRMS ITS GROWTH COMMITMENT TO SERVE THE BROADER MANDATE OF THE
SOCIETY.
–MD. OBAYED ULLAH AL MASUD MANAGING DIRECTOR & CEO
Bismillahir Rahmanir Rahim
Distinguished Chairman of the Board of Directors of Rupali
Bank, Mr. Monzur Hossain, MP, Hon’ble members of the Board
of Directors, shareholders, executives of the Bank and journalist
friends in the electronic and print media, I extend a very warm
welcome to you to the 34th Annual General Meeting (AGM) of
Rupali Bank Limited. For the first time in our Bank’s history we
will have a virtual AGM, which is in keeping with the prevalent
times. Our virtual AGM will not only ensure the safety of our
shareholders and stakeholders as they can attend the meeting
from the comfort of their homes or home workstations, but will
also facilitate large-scale participation virtually.
A brief on Covid-19
The Covid-19 pandemic in Bangladesh is part of the worldwide
coronavirus pandemic, caused by the SARS-CoV-2 virus. The
virus was confirmed to have spread to Bangladesh in March
2020 by the country's premier epidemiology institute, IEDCR.
Since then, the virulence has spread over the whole country
and the number of affected people has been on the rise, as seen
elsewhere in the world.
Thus, in such a situation, placing the highest emphasis on
employee health and safety was a priority and, towards this
extent, RBL singed a MoU with Universal Medical College &
Hospital for medical consultation support at an affordable
cost. Further, considering the pandemic, which has had an
unprecedented health as well as economic impact, RBL
also introduced certain proactive changes in its services and
activities. The Bank has been conducting virtual Board meetings
since March 2020 on a periodic basis so that its regular activities
are not hampered in any significant way.
Going forward, I am hopeful that we will come out of the
pandemic situation with the combined and concerted efforts
of the public and the nation. As someone who is an eternal
optimist, I am certain that the world on the other side of the
pandemic will offer opportunities that will enable us to further
reinforce our long-term value creation platforms.
Bangladesh’s economy and banking sector
The incumbent Government is working tirelessly on the vision to
transform Bangladesh into a middle-income country by 2021,
58
and subsequently elevate the nation to the ranks of a developed
country by the year 2041. We gratefully remember father of the
nation Bangabandhu Sheikh Mujibur Rahman in his 100th birth
anniversary for his contribution in the country's economy. After
independent, Bangladesh achieved the highest GDP growth
rate of 9.60 in the year of 1974. After long time with the leading
of Bangabandhu's daughter honorable Prime Minister Sheikh
Hasina, the country has come back in the trend of achieving
high GDP growth rate. Inshallah, the GDP growth rate will more
increase in the coming years.
We convey our pride and gratitude to the Government for the
momentous recognition of promotion of the country from the
Least Developed Country (LDC) status. Such a transformation is
indeed unprecedented for a country of our size comprising over
165-mn people, and comes at a time when the nation is joyous in
its celebrations of the 100th birth anniversary of Bangabandhu
Sheikh Mujibur Rahman, the father of the nation.
In 2019-20 fiscal year, Bangladesh’s macro-economy faced
multifold challenges, including cyclone, devastating floods
and major river bank erosions that large swaths of the country
suffered from during the year. Besides, the tail end of 2019-20
fiscal year also started to witness early signals of the coronavirus
pandemic, which has now morphed into an unprecedented
economic catastrophe.
Still, Bangladesh’s resilient economy has progressed well and is
considered to be amongst the fastest-growing economies of the
world. National GDP growth stood at 8.20 percent in the 2018-19
fiscal year, up from 7.90 percent in 2017-18 and 7.60 percent in
2016-17.
Further, per capita national income rose by a respectable US$
210.00 to US$ 1,850.70 in 2018-19 fiscal year, against US$ 1,640
in the 2017-18 fiscal year.
An investment-oriented, growth-friendly and conservative
monetary policy adopted by the Government has kept
inflationary pressures at tolerable levels. The average inflation
rate during the first 12-months of July 2018 -June 2019 fiscal
year stood at 5.35-5.63 percent.
In recent times, interest rates against loans and deposits of
commercial banks have witnessed steady declines. It has also
been observed that banks are being more cautious in their

liquidity management practices. Yet, Rupali Bank reported
sound performance in 2019, despite the external challenging
environment, and reported creditable progress across most
financial and non-financial metrics during the year.
Business growth – Stable and secure
Rupali Bank was able to achieve noteworthy business success
under the prudent and able leadership of its Board of Directors.
Effective planning and concerted steps embraced by the
management and staff is praiseworthy that enabled the Bank
to reach its objectives and milestones during the year. However,
we are cognizant of the reality that though we have achieved
progress, we still have a considerable way to go.
At our Bank, our purpose keeps us focused on what we do, who
we are doing it for and why we are doing it. This represents the
foundations for long-term value creation, enabling us to make
structured and strategic investments in innovation, human
resource development and for pursuing any tactical growth
opportunities. In effect, far-sightedness augments our capacity
to generate sustainable returns for our shareholders and
stakeholders over the long-term.
As a Bank that is committed to the financial welfare and
wellbeing of our customers, we are proactive in engaging with
our borrowers and advising them to make the right financial
decisions for themselves that eventually cascades down to their
near and dear ones, with an element of humanity. Serving the
interests of our customers also means that we are able to protect
the interests of our employees and investors by removing
uncertainty in our future performance.
The culmination of our efforts and initiatives over the past
few years by our various business and support teams across
our extensive footprint in Bangladesh has yielded creditable
financial performance for the Rupali Bank Group on many
counts for the year. Having said that, the year 2019 was not
without its own set of complexities and challenges.
At the start of the year, we guided that our net interest margin
could face downward pressure arising from deposit competition
and limited ability to re-price our loans upwards with the
imposition of regulatory ceilings on industrial lending rates.
Therefore, we decided from the outset that we would protect
our margins to the extent possible and not pursue market share
at the cost of diminishing yields.
Going forward, we will continue to be watchful in terms of credit
disbursement to the right sectors/segments at the right price
and take concerted and coordinated steps to bring down our
classified loans portfolio and arrest fresh slippages.
Deposits – Growing and supportive of our aspirations
Led by long-standing credibility and sound reputation, Rupali
Bank has achieved a stable deposit base over the past several
years. Deposits of the Bank stood at Tk 41,462.63 cr in 2019
(2018: Tk 38,954.95 cr), representing a healthy 6.42% YoY growth,
a performance that was achieved despite intense industry-wide
competition for deposits.
Loans and advances – Rising and well-controlled
Loans and advances surged from Tk 24,749.06 cr in 2018 to Tk
30,672.40 cr in 2019, representing a 23.93% YoY growth. This
showcases good achievement, as it was not possible to disburse
Rupali Bank Limited
additional loans beyond the ceiling, as set under an MoU
signed with Bangladesh Bank, though Rupali Bank had the
opportunity for disbursement of incremental credit.
The import business of the Bank grew from Tk 11,402.15 cr in
2018 to Tk 15,401.83 cr in 2019, registering a sound YoY growth
of over 35%.
Investment – Steady and stable
Under a relatively stable investment climate, the total investment
of the Bank leaped from Tk 8,233.65 cr in 2018 to Tk 10,364.62 cr
in 2019.
Classified loans – Focusing on controlling our NPLs
Classified loans of the Bank in 2019 stood at Tk 4,614.57 cr,
accounting for 16.15% of the total loans. We have placed
unprecedented emphasis on collections and recovery, and
expect to materially moderate our classified loans portfolio over
the medium- to long-term.
Foreign exchange – Anchored on strong relationships
An important initiative to activate all 29 AD branches of the
Bank into conducting foreign exchange business was initiated
during the year. Hence, it has now become possible for the
Bank to enable foreign exchange business with more efficiency
and promptness with various countries of the world through
28 Nostro accounts, 2 Vostro accounts and 337 Foreign
Correspondents. This has significantly impacted the Bank’s
export-import business. Further, profits earned in foreign
exchange from the dealing room operations under treasury
marked a substantive rise as well for the year.
Export
The export businesses of the Bank grew from Tk 2,600.20 cr
in 2018 to Tk 2,689.27 cr in 2019. The Bank’s export business
marked an increase of 3.43% YoY.
Foreign remittance
Total inward foreign remittance received stood at Tk 2,256.92
cr in 2019. Earnings and distribution of remittance from
different countries, especially the Middle-East that has a large
Bangladeshi Diaspora, became easier with the Bank’s increase
in trade associations. At present, the Bank has remittance
transfer arrangements with 45 of the world’s top exchange
companies. The Bank also started remittance operations with
5 new exchange houses under a comprehensive remittance
drawing arrangement forged during the year.
Operating profit
The Bank’s operating profit witnessed a decline from Tk 309.50 cr
in 2018 to Tk 193.23 cr in 2019. This is due to implementation of
lending rate 9% effective from July,1 2019. RBL made operating
profit worth of Tk. 400 crore less than previous year.
Automation
In a major step forward in our automation and digital banking
ambitions, all the branches of Rupali Bank came under live
operations in 2019, thus placing us structurally well to compete
and succeed in a challenging business environment. Further, all
branches of the Bank are being operated under CBS.
Annual Report 2019 59
Moreover, a Rationalised Input Template (RIT) was installed
at the branches concerned with the Head Office to upload all
statements regularly on the fixed web portal of Bangladesh
Bank. This move enhanced our compliance initiatives. Further,
the automated remittance facility was expanded at all the
branches of the Bank through remittance software. Besides, all
branches are facilitated by RTGS and BEFTN as well.
Under a Bangladesh Bank directive, 215 branches of Rupali Bank
installed Truncation Point to bring all branches under BACH.
Further, the Bank inked a deal with IT Consultants Ltd (ITCL) as
consortium member of Q-cash. Under this arrangement, the
Bank developed its own ATM/POS network, which has allowed
our customers to enjoy the convenience of ATM facility from any
location of the country. Besides, customers of the Bank are now
able to withdraw money through any branch of the Bank with
their own branded cards and can purchase any product from
shops/retail outlets having POS facility.
Presently, customers are availing SMS alert services and mini
statements through their mobile phone. Already, 12 own-
branded ATM machines with NPSB facility have been installed
at different branches, and a further 70 ATM and 10 recycler
machines will be installed, going forward.
Human resources
Our Bank’s human resource operations are being conducted in
compliance with the Human Resource Policy, 2011. The total
human resources of the Bank till December 31, 2019 stood at
5,641. Of them, Grade-9 to Grade-1 comprised 3,194 members,
Grade-10 comprised 712 members and Grade-11 to Grade-20
comprised 1,735 members. A total of 4,250 officers and other
employees were appointed during the 2010 to 2019 period.
Training
The Rupali Bank Training Academy (RBTA) was strengthened to
enhance the efficiency and create the platform for disseminating
specialist sector-specific knowledge of our officers and
employees, whom we consider as our real asset. In 2019, a
total of 102 training courses were arranged, which received
participation from 3,663 trainees. Further, RBTA conducted 52 in-
house and 24 outreach training courses, which saw participation
from 2,103 trainees. The courses were arranged under the direct
supervision of RBTA through BIBM, BBTA, BIM, NAPD, FinExcel,
East West University, TMSS, ICC Bangladesh, IBB, BFEDA,
etc. Further, senior executives of the Bank attended diverse
training programs, seminars and workshops held in India, the
Philippines, Japan, Malaysia, Indonesia, the UK, Australia, South
Africa, China, USA and Turkey.
Capital structure
The Bank has been able to build a strong capital base in the
recent years. The paid-up capital of the Bank, which has
achieved steady rise since 2011, increased from Tk 376.52 cr in
2018 to Tk 414.17 cr in 2019. Further, authorised capital stood at
Tk 700.00 cr, regulatory capital at Tk 2,565.14 cr and minimum
capital requirement at Tk 2,481.76 cr during the year under
report. Capital adequacy ratio (CAR) stood at 10.34% and excess
capital was to the extent of Tk 83.37 cr. Capital buffers have been
reinforced through the issue of Tk 600 cr in subordinated bonds
for Tier-II capital enhancement.
60
Dividend
To facilitate minimization of the socio-economic impact of
the Covid-19 outbreak, Bangladesh Bank (BB) has already
announced stimulus packages to rescue different sectors of the
economy, as per directive from Hon’ble Prime Minister, Sheikh
Hasina.
Considering the financial capacity of banks, BB published a DOS
circular regarding restricting dividends to shareholders, so that
banks are able to free up liquidity for facilitating the financial
relief packages. In such present-day circumstances, the need of
the hour is for banks to maintain adequate systemic liquidity.
Yet, to balance the interests of our shareholders, while also
fulfilling our responsible role in economic restoration and to
perpetuate liquidity as per BB DOS circular no-03, dated 11th
May, 2020, RBL has recommended a 5% stock dividend for the
year 2019.
We believe that our recommended 5% stock dividend of 2019,
amounting to Tk. 207.08 mn, will only be transmitted back to the
economy to facilitate growth and normalization.
Establishing of new branches
Rupali Bank has been increasing the number of branches to
extend its banking services footprint, post receiving all due
approvals from Bangladesh Bank. As many as 5 new branches
were opened in 2019 at different locations of the country,
considering the growth prospects of the respective micro-
markets and our ability to serve all segments of customers. Till
December 2019, the consolidated number of branches of the
Bank stood at 572, including 287 in urban areas and 285 in rural
areas. This reflects our even and homogenous emphasis on
achieving balanced development for our country.
Brief review of our subsidiary companies
Two subsidiary companies, Rupali Investment Limited and
Rupali Bank Securities Ltd, operate in the country’s capital
markets. Rupali Investment Ltd invested Tk 21.20 cr and Tk
100.18 cr, respectively, as margin loan and own portfolio,
with operating profit of Tk 3.65 cr in 2019. This is a credible
achievement considering the volatility and uncertainty in the
capital markets during the year.
Rupali Bank Securities Ltd bought the membership from the
Dhaka Stock Exchange (DSE) on November 22, 2012 (membership
number: 246). Later, Rupali Bank Securities was converted into
a Public Limited Company on August 29, 2013, under Registrar
of Joint Stock Companies and Firms with Tk 100 cr as paid-
up capital and Tk 500 cr as authorised capital. The company
formally commenced operations on January 8, 2015. Rupali Bank
Securities earned Tk 3.54 cr as operating profit in 2019.
Infrastructure
Focused on achieving equitable growth across Bangladesh and
enhance our capacity to serve our customers better, the Bank
engaged in the construction of modern buildings at Chattogram,
Cumilla, Cox’s Bazar (six-storied), Mymensingh (five-storied) and
Potuakhali (three-storied), which is already completed on own
land of Rupali Bank. Moreover, construction of a single-storied
building at Rajshahi is under progress.
I am also happy to announce that the mural of the Father of the
Nation, Bangabandhu Sheikh Mujibur Rahman, and the bust of

7 Birsresthoya have been installed at the entrance of the Head
Office with modern LED display. The Bank also reintroduced its
logo of 1972, the new logo and design of all the branch signboards
that has been changed gradually to showcase solidarity with the
momentous 100th birth anniversary of Bangabandhu.
Deposit and loan products
Rupali Bank launched three products during the year, including
Rupali Millionaire Deposit Scheme (RMDS), Rupali Monthly
Benefit for Senior Citizens (RMBSC) and Rupali Senior Citizens
Savings Scheme (RSCSS). Moreover, 5 loan products were
established to facilitate CMSMEs, including Shohoj, Peshajibi,
Baboshayee, Sulov and Majhari. Further, house building/flat
loan for Government employees was also introduced to facilitate
this constituency in their aspiration of home ownership.
Rural loans
A total of Tk 393.00 cr was disbursed in 2019 to eradicate
poverty in rural areas and enhance national productivity as
well. Besides, Tk 4 cr was disbursed under Bangladesh Bank’s
refinancing scheme in the milk production and artificial
insemination sectors.
Agri, rural and micro-lending
For the enrichment and sustainable development of the
agricultural sector of Bangladesh, as well as for the development
of overall rural economy, Rupali Bank is focusing on agricultural
and rural credit through its 225 rural branches out of 572 located
across the country. As per the needs of our customers, while
also ensuring that credit is made available on a timely basis,
Rupali Bank disburses agri and rural credit to various sectors,
as per the Agricultural Credit Policy of Bangladesh Bank, for
facilitating the development of the middle-income and poor
and underprivileged communities.
Notably, our Bank’s Agri, Rural & Microcredit Division (ARCMD)
has extended loan facility to various sectors, including fishery,
shrimp cultivation, goat/sheep rearing, poultry, dairy, beef
fattening, poverty alleviation, solar energy and bio-gas plants
and salt production, etc. Besides, we have also strengthened our
administrative and organisational capacities to offer microcredit
for fostering agro-based activities, including enhancing the
cultivation of pulses, ginger, turmeric, oil seeds and condiments,
etc.
Availing the refinance scheme of Bangladesh Bank with funds
mobilised at a concessional 5% rate of interest, we have
already disbursed Tk 12 cr in the milk production and artificial
insemination scheme. With a view to further amplify our impact
across rural and farm-based communities, we have also focused
on disbursing agricultural loans to those at the absolute
grassroots in collaboration with NGOs are through Bank-NGO
linkage loans. Such a partnership helps in maximising impact, as
NGO are deeply embedded in rural communities and are aware
of grassroots challenges and potential solutions.
Beside these initiatives, in 2019, Rupali Bank arranged as many
as 372 open agri loan policies through its 150 branches, and
Tk 41.20 cr was disbursed to 3,060 borrowers. Such policies
fostered trust among our customer communities, as these
focused on enhancing transparency and our spirit of service.
During the year, Rupali Bank disbursed Tk 425.10 cr, as against a
target of Tk 400 cr set at the beginning of the year, thus leading
to outperformance.
Rupali Bank Limited
As on 31 December, 2019 the total agri loan outstanding stood at
Tk 619.30 cr, while consolidated classified loan for this category
stood at Tk 33.96 cr. The Bank earned net income of Tk 428.68
cr through agri loans, which added handsomely to our overall
income pool in 2019. We expect that going forward agri loans
will comprise a more significant part of our loan book and
income profile.
Further, during the current year, our ARCMD issued a special
scheme comprising interest-free loans for tomato cultivation
under zero coupon lending. Through credit disbursement under
a special stimulus refinance window of Bangladesh Bank owing
to Covid-19, Rupali Bank availed such funds for extending loans
for milk production amongst marginal farmers, loans for mango
production under invoice financing and loans for women
cultivating vegetables in their backyard. Such a platform was
created in celebration of Mujib Borsho 2020.
Today, we have taken various measures to reach 100% of our
disbursement target for the year, while also engaging in the
recovery of classified loans, and also ensuring that there are
no fresh slippages, thus preserving our loan book from any
contamination.
CMSME business
Rupali Bank commenced disbursing CMSME loans since
2011 at both personal and institutional levels to achieve
national sustainable economic growth and also to eradicate
unemployment. The Bank has been instrumental in developing
CMSME entrepreneurs and, on the other hand, also in creating
durable employment opportunities. Besides, there remains a
privileged and exclusive CMSME facility for women entrepreneurs
as well. Rupali Bank fulfills a significant role in the country’s
economy and in employment generation through disbursing
loans to CMSMEs. A sum of Tk 1,040.75 cr was disbursed in
2019 as CMSME loans. Credit to the extent of Tk 47.63 cr was
disbursed among 627 women entrepreneurs for promoting the
participation of women-folk in this sector.
Internal control and risk management
The Bank formulated domestic control guidelines in compliance
with Bangladesh Bank guidelines. Under this framework, audit
and inspection division, compliance division and monitoring
division are collaborating and performing tasks together
mandated for ensuring internal control and compliance. Further,
an experienced head of Internal Control and Compliance is
entrusted with the responsibility of complying with all the rules
and regulations. Necessary directives are also being issued
through Audit Committee of the Board of Directors to comply
with internal control guidelines, BRPD Circulars and Bank
Company, Act 1991.
Further, Risk Management Division and other sub-committees
are also working relentlessly under Board supervision to
indentify various risks and mitigate their impact to the extent
possible.
Sustainable Banking
The United Nations has expressed the SDGs or Sustainable
Development Goals, which primarily comprise the tenets of
environment-friendly banking, CSR, financial inclusion and
financial support to education, for banks and FIs to embrace
with a view to assure stability in the financial services sector
through sustainable banking. Bangladesh Bank has enforced
Annual Report 2019 61
financial and non-financial institutions to comply with the
policy and guidelines formulated by the central bank. Rupali
Bank has been playing a significant role in green banking, CSR
and financial inclusion. Under the directives of Bangladesh
Bank, Rupali Bank has constituted a Sustainable Finance Unit
and Sustainable Finance Committee with a proper and well-
structured operating framework.
Green Banking
Global warming is a widely discussed subject in the prevalent
global context. Rupali Bank has included environment
awareness in its regular banking operations to mitigate
environmental risks created due to various reasons, including
industrialisation. It is now mandatory to comply with the
restrictions set by the Environment Directorate to finance
industrialisation. Compliances include our intermediation for
the installation of ETP or Effluent Treatment Plants. Further,
six branches of the Bank have installed solar panels, thus
ensuring sustainable electrification and optimised electricity
consumption. Automation has also been strengthened to
reduce dependency on paper consumption.
Moreover, every department of the Bank has been asked to
use electronic appliances, including PCs, printers, and ACs
responsibly to avoid misuse of electricity.
Environment risk has been included under Core Risk
Management to ensure green banking. Some of the environment-
friendly projects that are being financed by the Bank include
bio-gas plants, renewable energy/installation of solar panels,
HHK brickfields, zigzag brickfields, non-woven cloth factories,
green industry, pet bottle recycling factories, LED bulb assembly
plants, ETP, mushroom and tree plantations, etc. Financing jute
bag manufacturing projects have been placed on priority.
Further, various trainings, workshops, seminars and awareness
campaigns have been arranged on green banking, where
officials, employees and clients of Rupali Bank participate and
share ideas and insights.
The green financing project fund of Rupali Bank rose to Tk 677
cr up to 2019. Some of the projects received re-financing funds
from BB.
CSR
Rupali Bank extends financial support to empower the poor
and the disadvantaged. Our support also covers the areas of
education, sports, culture, health, relief operations, protection
of the environment, protection of heritage and contributing
to Liberation War heroes. The CSR activities of the Bank have
consolidated its position to create a meaningful and long-
lasting impact. A total of Tk 1.45 cr was spent in CSR activities
in 2019.
Financial inclusion
Rupali Bank has brought underprivileged segments of the
society, including poor farmers, people in slum communities,
unemployed youth, poor freedom fighters, RMG workers,
school students, street children and children engaged in
menial labour under the network of formal banking through
opening accounts in the Bank. Students between the ages of
6 to 18 years deposited Tk 73.13 cr in Bank accounts operated
by RSBA. Further, under our financial inclusion platform, a
total of 7,17,260 accounts are operative, of which 4,06,690
62
are owned by farmers, 80,856 are by schools, 63,541 are of Tk
10/50/100 account-holders, 2,423 belong to freedom fighters
and 983 are Pothoful financial inclusion accounts. A total of
Tk 88.50 cr was deposited under financial inclusion accounts
in 2019.
Mobile Banking
Rupali Bank is the first state-owned commercial bank to offer
mobile financial services (MFS). The Bank offers MFS through
its brand ‘Surecash’.
Today, the Bank has more than 1.85 cr customers, 1.35 lac
agents and 206 distributors across the country under Surecash.
Further, under a MoU signed between Rupali Bank and the
Ministry of Primary and Mass Education, 1.20 cr mothers of
1.50 cr primary students of 70,000 schools will receive about
Tk 1,300 cr as stipend through Surecash across the country.
Besides, different schools, colleges and universities are getting
the benefit of realising tuition fees and allowances under the
service, which is also being used to settle the dues of 1.25 lac
sugarcane farmers under Bangladesh Sugar and Food Industries
Ltd. This service is operative among the clients of Grameen
Bank as well to disburse loans and realise deposit installments.
Besides, different companies in the insurance, banking and
services sectors have inked mobile banking agreements with
Rupali Bank.
FUTURE OUTLOOK
Information Technology
Rupali Bank seeks to embrace digitalization with a view to
further augment the customer experience and journey. One of
the major initiatives planed comprises the implementation of
ERP. Some of the other significant initiatives planned by the
Bank include the following:
Introduction of demand-based credit card, gift card, utility
payment service
Reducing cash-payment counters and the concurrent
installation of Bank POS for facilitating online payments
Introducing own payment switch as per customers’
products needs
Integration between CBS and mobile banking
Extending the financial inclusion program through
disbursing stipends for students through mobile banking
Capital adequacy
At Rupali Bank, we have taken the following steps to maintain
capital adequacy, as the Bank’s present capital levels lack
adequacy, as per Basel-III:
Efforts are underway to receive re-capitalisation fund
support from the Ministry of Finance.
Issue subordinated bonds totalling Tk 600 cr.
Applied to MoF for approval of rights share issuance.
Efforts to increase the Bank’s capital through profit
enhancement.
Risk optimisation
Reducing and diversifying risk by focusing on CMSME loans
over large loans.

Managing risk through the implementation of integrated
risk management guidelines of Bangladesh Bank.
Reducing risk weighted assets (RWA) by following
Bangladesh Bank’s rating standards for borrowers.
Deposit collection
Launching new customer-facing deposit products .
Collecting low-cost/interest-free deposits from across all
our branches .
Identifying and focusing on 20/25 branches of the Bank
for big deposit collection, thereby adding to our CASA
portfolio.
Disbursement of loans and advances
Diversification of the loan book in terms of customer
segments and geography to mitigate excessive
concentration risks.
Widening CMSME loan financing also contributes to the
national cause of enhancing employment generation.
Focusing on agri-based and rural loans, especially through
our rural branches .
Disbursing house building/flat loans to Government
employees.
Disbursement of loan among borrowers with strong credit
profile in commercial cities and centres beyond Dhaka.
Recovery of classified loans
All-out efforts will be invested to reduce classified loans
to single-digit through placing the highest priority on
collections, and also by augmenting the quality of our book
through sharpening our credit underwriting practices .
Preventing fresh slippages, thus ensuring focus on
maintaining asset quality.
Engaging in a strong recovery drive to realise funds from
top loan defaulters and bringing dynamism in our overall
recovery process with a strong emphasis on performance
and ownership.
Realising installments of rescheduled and restructured
loans on a timely basis.
Others interventions
Reducing risks and enhancing profitability through the
proper management of core risks facing the Bank.
Ensuring effective utilisation of our human resources, with
an emphasis on productivity enhancement.
Relentlessly focus on improving the Bank’s CAMELS rating.
Rupali Bank Limited
Continuation of modernisation of head office, divisional
offices, local offices, corporate branches and other
strategically important branches.
Increasing foreign exchange and remittance business
volumes through raising the number of AD branches.
Posting of own officials in exchange companies and raising
drawing arrangement facilities with more companies/
banks and also installation of remittance software to ease
distribution channels.
Installation of ATMs at different branches on the basis of
demand and POS at shopping centres.
Extending the mobile banking business and focusing on
moving transactions to online platforms.
Reducing the number of loss branches to zero Adopting
and complying with the National Integrity Strategy
As I conclude my note, I extend my sincere gratitude to the
Government of Bangladesh, especially the Financial Institution
Division of the Finance Ministry, Bangladesh Bank and
Bangladesh Securities and Exchange Commission (BSEC) for
their continued support and advice.
At Rupali Bank, we will continue to maintain our balance sheet
strength so that we can strengthen support to our customers and
also continue to contribute actively to the economic activities in
our country. Further, we continue to invest in our infrastructure
and franchise for the long-term. We operate with prudence and
discipline, guided by our values and ethics of responsibility,
enterprise and commitment, to balance growth with stability
and opportunity with responsibility. We believe that such a
focus will ensure that we continue to generate sustainable value
for our stakeholders through varying business cycles.
Throughout 2019, the team at Rupali Bank – right from the
Board to all our colleagues – remained steadfast in supporting
our customers and each other. I thank them all for their
commitment, perseverance and enterprising spirit.
Finally, to our valued and loyal customers and shareholders,
thank you for your continued confidence in and support of
Rupali Bank.
May Allah bless us all!
Sincerely,
Md. Obayed Ullah Al Masud
Managing Director & CEO
Annual Report 2019 63
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64
Rupali Bank Limited

Annual Report 2019 65


DIRECTORS' REPORT
Bismillahir Rahmanir Rahim
Respected Shareholders
Assalamu Alaikum
On behalf of the Board of Directors of Rupali Bank Limited, I take
immense pleasure in welcoming you to the 34th Annual General
Meeting of the shareholders of the Bank. I am presenting before
you the audited financial statements and the Directors' Report
for the year ended 31 December 2019 for your kind consideration
and adoption.
Further, a brief overview of the global economy, along with a
brief on the performance of Bangladesh’s economy has also
been provided in the report. Such reviews offer a glimpse
of the operating context within which the Bank achieved its
performance for the year.
Trends of Global Economy and Global GDP Growth
Growth in global output plummeted to 3.6% in 2018, from 3.8%
in 2017, and is projected to decelerate further to 3% in 2019,
which is the lowest since 2008-09, which was the peak of the
global financial crisis. Growth is, however, anticipated to pick up
to 3.4% in 2020, principally buoyed by enhanced stimulus and
financial relief by central banks from the world over. In advanced
economies, growth is projected to slowdown from 2.3% in 2018
to 1.7% in 2019 and 2020, which have been the most impacted
by the coronavirus pandemic. On the other hand, in emerging
market (EM) and developing economies, growth is forecasted to
decline to 3.9% in 2019, and then pick up to 4.6% in 2020. GDP
growth stood at 4.5% in 2018.
Global Trade
Global trade growth is projected to rise from an estimated 2.9%
in 2019 to about 3.3% in 2020 and then 3.4% in 2021. With major
disruptions in global supply chains the world over on account
of pandemic-induced lockdowns and other restrictions, global
merchandise trade volumes are now expected to rise by
only 1.2% in 2019, substantially slower than the 2.6% growth
forecasted in April 2020. The projected increase in 2020 is now
2.7%, down from 3% previously.
66
CORPORATE
GOVERNANCE
Global Inflation Outlook 2019
Consumer prices are expected to moderate across both
advanced as well as emerging market and developing
economies in 2019 reflecting, to a large extent, the collapse
in commodity prices. In advanced economies, inflation
is expected to decline to 1.5% in 2019, from 2% in 2018,
supported by a softer outlook for energy/crude prices and the
expected moderation in growth. Inflation in emerging market
and developing economies is projected to remain at 4.7% in
2019, down from 4.8% in 2018.
Global Financial Outlook 2019
Financial conditions remain broadly accommodative and
growth supportive in the near term, though risks to the global
financial stability have increased exponentially since the
pandemic broke out majorly from March 2020 onwards. Global
trade volumes growth is projected to decline considerably,
from 3.6% in 2018 to 1.1% in 2019 and then rise to a projected
3.2% in 2020. Growth rate of imports for advanced economies
is expected to decline from 3% in 2018 to 1.2% in 2019 and
then anticipated to increase to 2.7% in 2020. In emerging
markets and developing economies, growth rate of imports is
projected to decline significantly, from 5.1% in 2018 to 0.7% in
2019, and then rise again to 4.3%. In the United States, growth
is projected to decline from 2.9% in 2018 to 2.4% in 2019 and
soften further to 2.1% in 2020. This is largely attributed to the
rise in Covid-19 caseloads and accompanying disruptions,
along with the Presidential elections scheduled for later in
2020. Growth in the United Kingdom declined to 1.4% in 2018
from 1.8% in 2017, and is projected to further moderate to
1.2% in 2019. The UK is among the worst-hit economies in the
EU, with major disruptions caused by the pandemic.
Inspite of government fiscal stimulus measures, economic
growth of China has slowed down to 6.6% in 2018 from 6.8%
in 2017. Moreover, China's growth was projected to slow down
further to 6.1% in 2019 and 5.8% in 2020 owing primarily to trade
tensions with the US and also because of the pandemic shaving
the sheen off China’s GDP growth rates.
 Rupali Bank Limited

World Economic Outlook Projections for 2019-20
(annual percentage change)
Actual Projections
performance of the horticulture sector. It is expected that
increasing farm mechanisation, introduction of modern farm
practices and enhanced Government support will prop up the
country’s agricultural sector over the medium to long-term.

2017 2018 2019 2020

World Output 3.8 3.6 3.0 3.4

Advanced economies 2.5 2.3 1.7 1.7

United States 2.4 2.9 2.4 2.1

Euro area 2.5 1.9 1.2 1.4

Japan 1.9 0.8 0.9 0.5

Other advanced economies 2.7 2.2 1.5 1.8

Emerging market and
4.8 4.5 3.9 4.6
developing economies
Emerging and developing Asia 6.6 6.4 5.9 6.0

China 6.8 6.6 6.1 5.8

M. K. Footwear Ltd. financed by RBL
Bangladesh 7.6 7.9 7.8 7.4

India 7.2 6.8 6.1 7.0 Industry Sector

Pakistan 5.2 5.5 3.3 2.4 The industry sector, constituting more than one-thirds of the
economic gross value-added (GVA), grew by around 12.7% in
Sri Lanka 3.4 3.2 1.1 3.2 FY19, up from 12.1% in FY18, led primarily by manufacturing,
and electricity, gas/water supply and construction. The growth
Source: World Economic Outlook Update, October 2019, IMF of all sub-sectors of industry increased in FY19, as compared to
(Annual Report 2018-19, Bangladesh Bank FY18, except the mining and quarrying sub-sector.
Major Challenges Sector GDP Growth Rates
Demand could pick up more than expected due to (at FY06 constant prices)
accommodative monetary policy in many countries announced
in the recent period. However, there still remain major downside FY17 FY18 FY19
risks to the outlook. Further acceleration of trade tensions 1. Agriculture 3.0 4.2 3.9
between the United States and China and associated increase
2. Industry 10.2 12.1 12.7
in policy uncertainty could worsen the growth outlook from the
baseline forecast. Moreover, deterioration of financial market 3. Services 6.7 6.4 6.8
sentiment would imply tighter financial conditions leading to GDP (at FY06 constant market prices) 7.3 7.9 8.15
worsening trade and geopolitical tensions, and a no-deal Brexit
withdrawal of the United Kingdom from the European Union Source: Bangladesh Bureau of Statistics
could protract slowdown in global growth. In the medium term,
augmented trade barriers and increased trade and geopolitical
Services Sector
tensions could lead to further disruption of global supply chains Despite some growth moderation, the services sector,
and thus could have a negative impact on growth. Finally, in comprising more than half of the GVA, registered a growth of
vulnerable countries, unmitigated climate change could reduce 6.8% in FY19. Within the sector, larger growth impulse primarily
growth forecasts. came from the education and health and social work sub-
sectors.
Bangladesh Economy
Sector Share of GDP
Bangladesh achieved a record high GDP growth of 8.15% in
FY19, which is the highest in the South Asian region. Such (Base year: FY06)
robust growth was led by both domestic and external demand,
reflected in the 10.5% growth in exports and 9.6% growth in FY16 FY17 FY18 FY19
remittances. Besides, political stability, improved power/energy 1. Agriculture 15.4 14.7 14.2 13.6
supply, favourable weather conditions for crop production and
higher growth in industrial sector also supported the growth. 2. Industry 31.5 32.4 33.7 35.0
3. Services 53.1 52.9 52.1 51.4
Agriculture Sector
Total GVA at constant
Growth in the agriculture sector declined from 4.2% in FY18 100 100 100 100
basic price
by 0.3 percentage points, and stood at 3.9% in FY19. This was
mainly due to fall in the growth of crop yields and sub-par Source: Bangladesh Bureau of Statistics

Annual Report 2019 67

Monetary Policy Foreign exchange remitted by expatriate workers stood at USD
18.32 bn in FY2018-19, against USD 17.89 bn in the preceding
Bangladesh Bank pursued a cautious, yet a growth-supportive, fiscal year. Of the total expatriate workers, more than 70% are
inclusive and investment-friendly monetary policy stance in employed in the Middle East. Remittance inflows rose to USD
FY19. The primary objective of such an approach was to achieve 18.32 bn in 2019, up from USD 15.54 bn a year ago.
the desired economic growth, while maintaining inflation at a
moderate level. Notably, the Government’s monetary and credit Banking Sector of Bangladesh
policies and programmes were designed to contain average
inflation at 5.60% and attain output growth of 8.15%, as per the The banking sector of Bangladesh experienced moderate level of
target articulated in the FY19 national budget. resilience in FY19. Bangladesh Bank persistently continues with
its efforts to uplift and ensure sound and stable performance
Inflation Rate of the country’s banking sector. In FY19, Bangladesh Bank
adopted a number of proactive policy measures to underline
Annual average inflation based on Consumer Price Index (CPI) the emphasis on risk management and governance across
exerted a downward trend throughout FY19, except for the last the banking sector, while also engaging in periodic reviews
two months of the financial year. Headline inflation rate stood at on stability of individual banks as well as the whole banking
5.48% in June 2019, while the Bangladesh Bank Monetary Policy sector, monitoring large borrowers, frauds and forgeries and
Statement (MPS, January-June 2019) had an inflation forecast strengthening internal controls and compliance through self-
range of 5.30-5.60% for the same period. The average inflation assessment of anti-fraud internal controls, etc .
rate was 5.78% in FY18. The average Inflation rate steadily
dropped since July 2018 (5.78%) until April 2019. At the end of June 2019, the total number of banks and their
branches increased to 59 and 10,286, respectively, as banks
Monthly CPI Inflation in FY19 sought to expand their geographic footprint and share of the
market. The broad performance of banking sector is given below:
(Point-to-point: FY06=100)
(BDT in bn)
In percent
8 Particulars SCB DFI PCB FCB Total
No. of banks 6 3 41 9 59
6
No. of branches 3,746 1,412 5,060 68 10,286
4 Deposit base 2,868 286 7,127 517 10,799
% share of deposits 26.60 2.60 66.00 4.80 100
2
Average CRAR (%) 8.53 (31.23) 12.70 28.68 11.74
0 Average NPL Ratio (%) 31.60 17.80 7.10 5.50 11.70
May-19
June-19
Nov-18
Sep-18
Aug-18

Dec-18

Feb-19
Mar-19
Jan-19
Oct-18

Apr-19
Jul-18

Source: Bangladesh Bank Annual Report 2018-19

General Food Non - Food Rupali Bank in the banking sector of Bangladesh
Source: Bangladesh Bureau of Statistics Rupali Bank has been playing a responsible, meaningful and
contributory role in aiding the development of the country’s
Import, Export and Workers’ Remittance economy. As a state-owned commercial financial institution of
repute, the Bank contributes through its holistic and wide-ranging
Import:
activities. In terms of deposits and loans of the whole banking
Imports (c.i.f) grew a 1.8% rate in FY19, as compared with the sector of the country, Rupali Bank occupied about 4% share. The
25.2% growth in FY18. Import payments as a percentage of the banking sector of Bangladesh is characterised by the presence
GDP declined to 19.4% in FY19, from 21.5% in FY18. During the of 59 banks with over 10,000 branches. Along with ensuring
same period, total import payments (c.i.f) increased to USD maximum contribution to the socio-economic development
59,914.7 mn from USD 58,865.3 mn in FY18. of the country, RBL earned Tk 193.23 cr as operating profit in
2019. Data as on 31 December 2019 showed that 3.41% of assets,
Exports: 3.65% of deposits, 2.90% of loans and advances, 0.80% of exports
and 3.04% of imports of the overall banking sector are possessed
The growth of exports (f.o.b) earnings increased to 10.1% by RBL. The market share of RBL is given below:
in FY19, from 6.7% in FY18. Exports as a percentage of GDP
moderated slightly to 12.9%, from 13.2% over the same period. (Tk in cr)
Exports (f.o.b) stood at USD 39,945 mn in FY19, vs. USD 36,285
mn in FY18. Particulars Size Market share
Total Assets 49,724.93 3.41%
Workers’ remittance Deposits 41,462.43 3.65%
Loans and advances 30,672.40 2.90%
A substantive rise in the country’s working age population– from
49% in 1994 to 62.7% in 2018 – provides a demographic dividend Import 15,401.83 3.04%
to the economy (UNFPA’s report on Bangladesh). Overseas Export 2,689.27 0.80%
employment plays a key role in utilizing this demographic Foreign remittance 2,256.92 1.46%
dividend. Branches (no.) 572 5.50%
Manpower (no.) 5641 3.09%

68
 Rupali Bank Limited

Emergence of Rupali Bank Limited Division-wise number of branches

Rupali Bank Limited (RBL) was incorporated as a Public Division Urban Rural Total
Limited Company on 14 December 1986 under the Local Office (Dhaka) 1 - 1
Companies Act, 1913, and has taken over the business of
Dhaka (North) 37 31 68
Rupali Bank (emerged as a Nationalised Commercial Bank
Dhaka (South) 45 5 50
in 1972, pursuant to Bangladesh Bank Nationalization
Order 1972 (P.O.No. 26 of 1972) as a going concern Chattogram 41 16 57
through a vendor agreement signed between the Ministry Rajshahi 32 42 74
of Finance, People's Republic of Bangladesh on behalf of Khulna 27 31 58
Rupali Bank and the Board of Directors on behalf of Rupali Barishal 23 26 49
Bank Limited on 14 December 1986 with retrospective effect Sylhet 20 31 51
from 14 December 1986. Rangpur 20 25 45
Subsidiary Organizations of RBL Cumilla 24 47 71
Mymensingh 17 31 48
Rupali Investment Limited (RIL) Total 287 285 572

Rupali Investment Limited commenced its merchant banking
activities in 2010. The company obtained license from the
Securities and Exchange Commission to act as issue manager,
maintaining investment accounts on behalf of investors.
underwriters, portfolio managers and also carry out other
merchant banking operations under the Securities and
Exchange Commission (Merchant Banker & Portfolio Manager)
Regulations, 1996.
Rupali Investment Ltd. started business operations at Sadharan
Bima Tower (7th floor), 37/A, Dilkusha Commercial Area,
Dhaka, with a modern working environment, good team of
specialists and professionals, and fully-automated merchant
banking services, thus ensuring innovative and quality services
dispensed to customers. The company has authorized capital
and paid-up capital to the tune of Tk 500 cr and Tk 100 cr,
respectively.
The Managing Director & CEO of Rupali Bank is the Chairman of
Rupali Investment Ltd. Rupali Investment earned Tk 3.65 cr as
operating profit in 2019.
Rupali Bank Securities Limited (RBSL)
Principal Activities of RBL
The principal activities of the Bank comprise of banking and
related activities, such as accepting deposits, personal banking,
trade financing, CMSME, trade and services, cash management,
treasury, securities and custody services, remittance services,
etc. Our products include both conventional as well as modern
products, thus enhancing our ability to cater to a wide range of
customer and client needs and requirements.
Capital Structure
Shareholders' equity as on 31 December 2019 stood at Tk
1,687.60 cr, against Tk 1,707.69 cr in 2018. Paid-up capital of the
Bank stood at Tk 414.17 cr in 2019.
Capital Structure
1,687.60
1,327.17
1,238.57 1,707.69
1,183.25

Rupali Bank Securities Limited (RBSL) is a subsidiary company

of RBL. RBSL purchased membership from Dhaka Stock
Exchange Limited (DSE) on 22 November 2012 (membership
no. 246). Subsequently, the company was incorporated as a 2015 2016 2017 2018 2019
Public Limited Company on 29 August 2013 with the Registrar
Funding Structure
of Joint Stock Companies, vide certificate of incorporation
of business on the same date with an authorized capital The year-end funding structure of the Bank in 2018 and 2019 are
of Tk 500 cr and paid-up capital of Tk 100 cr. The primary given below:
objective of the company is to conduct and carry on the
(Tk in cr)
business of a stock broker and stock dealer and to engage in
all types of stock brokerage business, including BO account Sources of funds 2019 2018
opening, buying and selling of securities with the permission Deposits 41,462.43 38,954.95
of competent authority. Rupali Bank Securities earned Tk 3.54 Borrowings 1,206.58 700.77
cr as operating profit in 2019.
Other liabilities 5,368.32 4,965.56
National Network Paid-up capital 414.17 376.52
Statutory reserve 344.30 325.17
With a large geographical coverage, RBL possesses a well- Share money deposit 680.00 680.00
distributed network of branches in rural and urban areas of Other reserves 209.48 285.00
Bangladesh. It has 572 branches, and established 4 branches
Retained surplus from profit and loss account 39.65 41.02
in 2019. The Bank oversees the activities of its branch network
through 10 divisional and 25 zonal offices. Total 49,724.93 46,328.98

Annual Report 2019 69

Funding Structure 2019 (in percentage)

Paid-up capital 0.83% Statutory reserve 0.69%

Share money deposit 1.37%

Other Liabilities 10.80%
Others reserve 0.42%
Borrowing 2.43%
Retained surplus
from 0.08%

Deposits 83.38%

Asset Portfolio
Annual Business Conference 2019
Rupali Bank’s asset portfolio constitutes loans and advances,
investments, fixed assets, money at call and short notice, cash- (Tk in cr)
in-hand and balances with other banks/financial institutions
and other assets. Asset portfolio of the Bank in 2018 and 2019 Type of deposit 2019 2018
comprised the following: Current and other deposits 2,909.13 4,386.88

Asset-Portfolio 2019 Savings bank deposits 8,711.22 7,916.55

Fixed deposits 29,203.80 26,217.60
Cash in hand and Other assets
balance with other 2465.68 Bills payable 638.27 433.93
bank's& Fls, 4789.49
Total 41,462.43 38,954.95
Fixed assets
1432.74
Deposit Growth
25.56%
21.84%
Investment Loans and advances
10364.62 30,672.40 14.51% 14.55%
9.96%
6.44%

(Tk in cr)

Particulars of assets 2019 2018

Loans and advances 30,672.40 24,749.06

2014 2015 2016 2017 2018 2019
Investment 10,364.62 8,233.65

Fixed assets 1,432.74 1,423.10 Deposit-mix 2019 (in percentage)

1.54% 7.02%
Money at call and short notice 0.00 524.00

Cash-in-hand and balance

4,789.49 8,887.78
with other banks & Fls
21.01%
Other assets 2465.68 2,511.39

Total 49,724.93 46,328.98

70.43%

Business Performance – Deposits

At the end of December 2019, the Bank’s deposits stood at Tk

41,462.23 cr, as compared with Tk 38,954.95 cr at the end of the
previous year, leading to a YoY growth of 6.44%.
In the prevailing scenario, deposit mobilization has become
highly competitive and, resultantly, the average cost of funds for
banks has increased as compared to that of the previous year.
The bank has placed particular emphasis on the mobilisation
of low-cost funds. The Bank’s deposit mix as on 31 December
2019 was as follows:
Bills payable Current & other deposits Savings bank deposits Fixed and scheme deposits
Investment
The investment portfolio of the Bank at the end of 2019 stood
at Tk 10,364.62 cr, against Tk 8,233.65 cr in the previous year,
thus registering growth of 25.88%. The Bank has always given
emphasis on high-yielding investments with adequate capital
protection and also maintains its statutory liquidity reserve

70
 Rupali Bank Limited

(SLR). The investment portfolio of the Bank as on 31 December (Tk in cr)

2019 is shown below:
Sector-wise loans 2019 2018
(Tk in cr)
Agriculture 1,023.87 962.57
Type of securities 2019 2018
Industry 18,646.31 14,910.62
Treasury bills 822.36 1,385.45
Trade & Commerce 6,395.44 5,145.94
Treasury & other bonds 5,512.04 3,141.27
Construction 594.66 518.13
Prize bonds 0.88 1.05
Transport 300.54 253.39
Subtotal (A) 6,335.28 4,527.77
Consumer finance 1,070.66 983.76
Non-government securities 3,001.00 2,584.00
Miscellaneous 2,640.93 1,974.65
Debenture 0.26 1.34
Total 30,672.40 24,749.06
Shares 847.07 894.54

Investment in Bangladesh Fund 146.00 146.00 Sector-wise loans

3%
Commercial Paper 35.00 80.00 3%
1% 9%
2%

Subtotal (B) 4,029.33 3,705.88

21%
Total (A+B) 10,364.62 8,233.65
61%

Credit portfolio

RBL’s credit portfolio includes loans and advances provided

Agriculture Industry Trade & Commerce Construction
under conventional terms. Credit covers corporates, CMSMEs
Transport Consumer finance Miscellaneous
and retail customers and clients. The Bank has four divisions
across its credit portfolio, including:

(i) Industrial Credit Division

(ii) Foreign Trade Finance & International Division
(iii) General Credit & SME Division and
(iv) Agri & Rural Credit Division.

Growth of loans & advances Taka in crore

30672.40
24,749.06
20,667.27
17,515.04
14,251.50

Zaber & Zubair Fabrics Ltd. financed by RBL

2015 2016 2017 2018 2019
Total loans & advances of the Bank as on 31 December 2019
stood at Tk 30,672.40 cr, vs. Tk 24,749.06 cr in 2018, thus
demonstrating an increase of 23.93% over the preceding year.
Loans and advances comprise of loans, cash credits, overdrafts
and bills purchased and discounted. Loans offered by the Bank
comprise of a wide variety of products.
Following is the sector-wise position of loans and advances as
on 31 December 2019:
Industrial Credit
Corporate credit is the largest section of the Bank in entire credit
management and it is managed by the Industrial Credit Division.
The large loans are disbursed in line with the loan policy of the
Bank.
Industrial advance includes business and industries such
as RMG, Textile, Food & allied Industries, Pharmaceutical
Industries, Chemical Fertilizer etc., Cement & Ceramic Industry,
Ship Building, Ship Breaking, Power, Gas, Other Manufacturing
Industry, Service & Others Loans.

Annual Report 2019 71

 (Tk in cr)

Industrial Credit 2019 2018

RMG 2,265.23 1973.05

Textile 7,695.99 6704.62

Food & allied Industries 538.39 361.87

Pharmaceutical Industries 585.41 484.55

Chemical Fertilizer etc. 1208.36 909.36

Cement & Ceramic Industry 295.44 256.36

Ship Building 121.78 121.78

Bling Footwear Ltd. financed by RBL
Ship Breaking 459.51 411.11
CMSME business and women entrepreneur financing
Power, Gas 308.74 283.46 during 2018-2019
Other Manufacturing Industry 2,627.33 1536.93 (Tk in cr)

Service 1065.72 1056.30 Particulars 2019 2018

Others 1,474.41 811.23 Target:

CMSME 1,500.00 1,000.00
Total 18,646.31 14,910.62 Women entrepreneur financing 150.00 100.00
Disbursement:
Cottage, Micro, Small and Medium Enterprises CMSME 1,046.75 715.43
(CMSME) Women entrepreneur financing 47.63 65.31
CMSMEs are recognized as engine of economic growth and Entrepreneurs:
employment generation in Bangladesh, fostering sustainable CMSME 2,090 3,798
industrialization. Further, in Bangladesh, there is no alternative Women 627 1,202
to cottage, micro, small and medium enterprises and the
importance of this grouping can be reflected from the fact that at Activities and achievements of CMSME, 2019
relatively lower capital investments they support the maximum
employment generation. Publishing loan policy guidelines, brochures and booklets
encompassing the procedure for entrepreneurs seeking
Rupali Bank has undertaken CMSME funding through consistent loans and assisting in loan proposal preparation, sanction
expansion of credit to the sector, thus emphasizing the policy and eventual disbursement
of financial inclusion amongst the excluded, while also
rejuvenating the 45 cluster industries in remote areas around Field-level executives and officers have been empowered
the country. The Bank, across its diverse CMSME financing for loan approval up to particular limits
schemes, has also been disbursing loans of up to Tk 25 lac under Young officers are trained in our CMSME program, thus
refinancing to women entrepreneurs. Besides, installation of accelerating services to entrepreneurs
bio-gas, solar energy-run projects and professional loans under
CMSME are extended on a priority basis. Formation of CMSME monitoring cell in all divisional and
zonal offices and corporate branches for organising CMSME
RBL introduced five products for CMSME financing activities In 2019 Tk 1046.75 cr was disbursed among
clients/entrepreneurs, and Tk 47.63 cr was disbursed
among 627 women entrepreneurs
A dedicated desk was established at branches exclusively
Upto 75 crore Majhari Rin for women entrepreneurs
Upto 20 crore Sulov Rin A CMSME help desk and woman entrepreneurs unit was set
up at the head office
Upto 5 crore Babosayee Rin
The bank participated in various CMSME fairs and also
Upto 1 crore Peshajibi Rin those for CMSME woman entrepreneurs
Upto 10 Lac Sohoj Rin CMSME loan disbursement target, 2020

A newly launched master circular covering the broad

spectrum of CMSME businesses will be issued so that
eligible woman entrepreneurs can avail CMSME loans more
efficiently and easily

72
 Rupali Bank Limited

The target of CMSME loan disbursement in 2019 is Tk 1,500 cr
Our vision is to create opportunity for more women
entrepreneurs, thus contributing to women empowerment
To identify 45 cluster sectors and to strengthen those sectors to
direct the cluster-based project, export-based projects, IT and
tech-based initiatives, cottage, micro and small enterprises,
village entrepreneurship, developing labour-intensive
initiatives and women entrepreneurs on a priority basis
To impart special training on CMSMEs
CMSME loans will be disbursed among women
entrepreneurs of up to a total of Tk 150 cr (10% of the total
target in 2019) under the new CMSME guidelines.
Agri, Rural & Micro Credit
Rupali Bank continues with providing extensive financing
support to rural communities, thus placing importance to
agriculture as a priority sector. As part of our sustainable
banking practices, the Bank is keen to engage in green banking,
green energy, green industry, etc.
With rapid environmental deterioration in Bangladesh,
environment-friendly agricultural practices will gain momentum
to help achieve the mandate of green revolution. Upholding the
spirit of green financing, RBL has been providing loan facility to
millions of poor people living in rural areas.
Under standing instructions from the Government and
Bangladesh Bank, Agri, Rural & Micro Credit Division of RBL has
been extending loan facility to the middle-income communities
and poor and ultra-poor people for ensuring comprehensive
socio-economic development, while also fostering livelihood
generation in such small businesses as fisheries, shrimp
cultivation, goat rearing,
(Tk in cr)
poultry, dairy, beef fattening, poverty alleviation, handicrafts,
solar panel installation, bio-gas and agro-based projects,
peas, bean, maize, spices, tree plantation programs, etc. The
Bank disbursed Tk 12 cr (at a concessional 4% rate of interest)
in 2019 in milk production and artificial insemination scheme,
refinanced by Bangladesh Bank. During the year 2019 (2019-
20 FY) Tk 382 cr has been approved by the Board of Directors
for allowing agricultural and rural credit under the mentioned
schemes. In this regard, a total of Tk 354.50 cr was disbursed in
2019.
During the year 2019:
Rupali Bank disburses agricultural and rural credit through its
225 rural branch network located across the country, as per the
agricultural credit policy of Bangladesh Bank for ensuring the
development of the middle-income, poor and under-privileged
people.
Agri, Rural & Microcredit Division (ARCMD) of RBL has
extended loan facility to various sectors, like fisheries,
shrimp cultivation, goat/sheep rearing, etc. The Bank also
availed refinancing scheme of the Bangladesh Bank to
enhance disbursements for milk production and artificial
insemination. With a view to maximise credit impact, it also
disburses agricultural loans to the grassroots through NGOs
(Bank-NGO linkage loans).
In 2019, Rupali Bank disbursed Tk 425.10 cr out of the yearly
target of Tk 400 cr. As on 31/12/2019, total agri loan outstanding
stood at Tk 619.30 cr and total classified loan portfolio stood at
Tk 33.96 cr. Going forward, agri and rural loans will be a huge
focus area.

Outstanding During the year 2020:

Sectors of Loan Budget as on
31.12.2019 Our ARCMD has launched a special scheme comprising of
Fishery development interest free loans for tomato cultivation. The bank has also
Shrimp cultivation 6.00 0.41 availed of the refinancing scheme of Bangladesh to disburse
Fish culture 18.00 2.37 loans amongst vulnerable communities impacted most by the
Granary scheme 5.00 2.70 pandemic. This is commemorated to the “Mujib Borsho 2020”
celebrations, thus demonstrating our commitment to financial
Pulses, oil seeds, spices 4.00 3.18 inclusion and employment generation.
and maize crops
Salt production 0.50 0.00
Foreign Exchange and Foreign Trade
Veterinarian development
Dairy, cow fattening 10.50 3.80 In the foreign exchange and foreign trade business, the
Goat/sheep rearing 2.00 0.47 Bank performed well in 2019, despite the volatility in a
Poultry 2.00 0.06 competitive foreign exchange market. The division accurately
interpreted the market direction in foreign exchange, though
Agricultural machinery 2.00 0.01
due to soaring depreciation and volatility in the foreign
Irrigation equipment 2.00 0.00
exchange market, the Bank faced severe challenges. Yet,
Plantation (nursery) 1.00 0.87
by prudently managing foreign exchange market risk, LC
Solar & bio-gas plants 2.00 0.07 settlement and the Bank's currency position are properly
Youth/farmer programs 1.00 0.06 maintained.
Microcredit programs
Microcredit 40.00 44.90 Import Trade
Social and poverty The Bank achieved import business of Tk 15,401.83 cr in 2019,
3.00 1.79
reduction
up from Tk 11,402.15 cr in 2018. Major import items included
Disabled persons 1.00 0.01
capital machinery, industrial raw materials, yarn and fabrics
Bank-NGO linkage 300.00 364.40 for the RMG industry, food items, crude oil/petroleum, ship
Total 400.00 425.10 breakage, consumer goods, etc.

Annual Report 2019 73

Export Trade the customers’ mobile wallet directly from the foreign exchange
companies/banks having remittance drawing arrangement
The Bank has facilitated export-based industries, such as
with Rupali Bank. Rupali bank has been taking part in different
garment, jute, leather and others to earn a substantial quantum
promotional activities in home & abroad for expanding its
of foreign exchange for the country. The total export business
remittance business as well as to popularize its technology
handled by the Bank stood at Tk 2,689.27 cr in 2019, as compared
based remittance services to NRBs.
to Tk 2,600.20 cr in 2018, thus registering growth of 3.43%.

Currency Trading
RBL trades in foreign currency in the international currency
market. Our dealing room earned Tk 4.42 cr and Tk 2.54 lac
from speculative deals in 2019 and 2018, respectively.

Currency trading is done by different platforms provided by a

number of reputed banks who are correspondents with Rupali
Bank. For the purpose of currency trading, Reuters Dealing
System (Code: RBBD) has introduced voice recorder service and
other sophisticated logistical support.

Import, Export and Remittance Business in 2018 and

2019
ALCO Meeting
15,401.83 2019 2018

Treasury Operations
11,402.15
The role of our Treasury Division extends from day-to-day cash
management, short-term and long-term liquidity planning and
protection, short and mid-term investments, driving ALCO and
taking up equity capital planning for the Company.

2,689.27 2,600.20 2,256.92 Investment Position as on 31 December 2019

1,717.32
Particulars Amount
Import Export Remittance A. Government Securities
a) Treasury Bill 822.36
Foreign Remittance
b) Treasury Bond
Rupali Bank is providing modern, technology based & hassle i) Interest Bearing 5,172.59
free safe remittance services to the clients. The Bank has been ii) Non Interest Bearing 339.45
active in operation of both inward and outward remittance.
c) Bangladesh Bank Bill -
Rupali Bank's inward remittance covers remittance under
taka drawing arrangement with 48 world renowned exchange d) Reverse Repo (BB) -
companies and banks. The bank is currently providing Account e) Prize Bond 0.88
Credit with Rupali Bank, Account Credit with Other Banks Sub Total 6,335.28
through BEFTN Channel and Spot Cash/Web cash Remittance
B. Other Investment
services to beneficiaries in Bangladesh. Remittance is being
credited to beneficiaries’ accounts through fully automated a) Debenture 0.27
Remittance Distribution System integrated with Core Banking b) Mutual Fund 146.00
System (CBS). The Bank emphasises to establish remittance c) Share
drawing arrangement with renowned exchange houses located i) Ordinary Share 348.29
in different regions throughout the world. The bank has made
new agreement with 4 renowned exchange houses under ii) Preference Share 498.78
remittance drawing arrangement in the year 2019. The bank d) Subordinated Bond & Other 3,001.00
has signed agreement with Famacash Inc., USA to set up one e) Commercial Paper 35.00
Exchange House in United Kingdom and one Exchange House Sub Total 4,029.33
in United States jointly (51:41) to facilitate remittance services
Total Investment in Securities (A+B) 10,364.62
through mobile apps to NRBs in UK & USA. These proposals are
under process at Bangladesh Bank for permission. C. Running Investment
i) Money at Call 0.00
In the year 2019, bank received Inward foreign remittance of TK
ii) Fixed Deposit Receipt 2,086.05
2256.92 Cr.(Eqv USD 262.00 Million) which was 31 percent more
than that of the previous year. In order to increase remittance Grand Total (A+B+C) 12,450.67
business, the bank has planned to appoint a dedicated team in
Rupali Bank has an approved Asset Liability Management
Saudi Arabia with association of remittance partners’ of Rupali
(ALM) policy, the key responsibility of which lies with the
Bank. The bank also has taken steps to disburse remittance to
Asset Liability Management Committee (ALCO) comprising

74

senior management of the organisation. ALCO holds the
responsibilities of ensuring a systematic management process
for tracking Balance Sheet risks in a timely manner; proactively
review and manage potential liquidity and interest rate risks
which may arise from market movements, regulatory changes
and/changes in the economic/political environment.
The Bank maintains a diversified and stable funding base.
Management of liquidity and funding is carried out by the
Treasury Division under approved policy guidelines.
Creating an optimal capital structure that maximises equity
returns while meeting the requirements of regulators and
markets. Our Investment Management team has longstanding
experience and is able to leverage their expertise to advise and
manage institutional portfolio.
Asset Quality
Asset quality is a major area of attention at RBL. Credit facilities
are only extended to customers who comply with the credit
policy of the Bank. The non-performing loan ratio of the Bank in
2019 stood at 16.15% at Tk 4,614.57cr, vs. 19.21% at Tk 4,428.85
cr in 2018.
Customer views exchange meeting
Loan Classification and Provisioning
As per Bangladesh Bank circular, the Bank has decided to
calculate the total amount of classified loans for the year 2019,
which stands at Tk 4,614.57 cr, as compared to Tk 4,428.85 cr
at the end of 2018. The Bank has kept aside provisions for both
classified and unclassified loans to the extent of Tk 1,541.38 cr.
Recovery of NPL
RBL has extensively strengthened its efforts to reduce classified
loans and advances through embracing intensive monitoring
and reviews and also by taking other appropriate measures.
Classified loans amounting to Tk 138.69 cr were recovered in
2019, representing a substantial achievement in our recovery
efforts. A comparative position of recovery of RBL is as follows:
Particulars 2019 2018
Target 1,500.00 1,500.00
Recovery (Cash+Adjustment) 875.76 1,036.79
Recovery (%) 58.38 69.12
Rupali Bank Limited
Inauguration ceremony of 573rd branch of RBL
Branch Expansion
Rupali Bank is committed to expanding its branch network
across the country, aligned with its vision of expanding financial
inclusion through its substantial network in rural as well as
urban areas. The Bank is enhancing its geographic footprint in
local communities across the country. The Bank’s rapid scale
up of its branch network is visible in the fact that from 1980-2011,
only 11 new branches were established. Thereafter, between
2012 to 2019, as many as 65 new branches were launched. This
accelerated ramp up was continued in 2019 as well, with the Bank
establishing 4 new branches during the year. The total number of
branches has now increased to 572 at the close of 2019.
Deposit Products
Rupali Bank offers a large and diversified pool of deposit
products, including deposit schemes, specific accounts offering
more flexibility and other innovative schemes targetted at
special groups of customers, like children, women, senior
citizens, businessmen, etc.
RBL added three new products with distinctive features in its
deposit scheme product line during the year. These included
- Rupali Millionaire Deposit Scheme (RMDS), Rupali Monthly
Benefit for Senior Citizens (RMBSC) and Rupali Senior Citizens
Savings Scheme (RSCSS).
Alternate Delivery Channels
For ensuring the dispensation of sustainable banking services,
while also enhancing customer convenience, RBL instituted
an Alternate Banking Division in March 2011 for effectively
monitoring the functioning of its alternate delivery channels,
such as Own Branded ATMs, BEFTN, BACH program, CBS,
CIB online system, web-based remittance management system
and Rupali Bank Human Resource Management System. The
Division also provides redundant connection to head office
and branches for ensuring sustainable and disruption-free
operations.
Core Banking Solution (CBS)
Rupali Bank has selected the Core Banking Solution (CBS)
branded 'IntelecTM 10' of Sonali Polaris FT Limited (SPFTL),
which is at the heart of its operations.
Under the CBS project, all branches of the Bank have been
turned ‘live’.
Annual Report 2019 75

Receiving award of International Immigrant Fair 2019
Implementation of Basel-III
The Bank has given emphasis in the implementation of Basel-
III, in line with Bangladesh Bank guidelines that deals with
three distinct areas, commonly known as pillars. The phase-in
arrangement for Basel-III implementation for minimum capital
requirement against risk weighted asset (RWA) will be as follows:
Phase-in Arrangement: Minimum total capital plus capital
conservation buffer
2015 2016 2017 2018 2019 2020
10.00% 10.625% 11.25% 11.875% 12.50% 12.50%
Capital Adequacy of RBL as on 31 December 2019
(Tk in cr)
Minimum Capital Requirement (MCR) Tk 2,481.76
Regulatory Capital of RBL Tk 2,565.14
Capital Surplus/(shortfall) 83.37
Total risk weighted asset 24,817.64
Capital to risk weighted asset Ratio (CRAR) 10.34%
The Bank’s Board stringently monitors three directives:
minimum capital reserve, supervisory review process and
market discipline, in line with Basel-III, as framed by Basel
Committee on Banking Supervision (BCBS). Till December
31, 2019, the risk-based asset pool of the Bank stood at
Tk 24,817.64 cr and as per Basel-III at the rate of 10%, the
Minimum Capital Requirement is Tk 2,481.76 cr. At the same
time, total capital of the Bank stood at Tk 2,565.14 cr. BCBS
has developed two minimum standards for funding liquidity.
These include Liquidity Coverage Ratio (LCR) and Net Stable
Funding Ratio (NSFR). In 2019, LCR was calculated at 154.52%,
which is greater than 100%. In 2018, NSFR stood at 95.53%,
which indicates the minimum standard of holding NSFR, which
indicates that the Bank had enough funding for the whole
year in unfavourable situation.
Capital to risk weighted asset Ratio (CRAR)
As per the provisions of Section 13(2) of the Bank Companies
Act , 1991, and BRPD circulars no. 18 December 21, 2014 issued
by Bangladesh Bank, adequate capital needs to be maintained
76
by all commercial banks to operate banking activities smoothly.
Rupali Bank needs to maintain adequate capital to ensure
safety of stakeholders' interests as well as the soundness of
its operation. The Bank maintained total capital of Tk 2,565.14
cr, vs. the required Tk 2,481.76 cr (10% of RWA of Tk 24,817.64
cr). CRAR stood at 10.34%. In parallel, there is a capital surplus
of Tk 83.37 cr, which meets the minimum Capital Requirement
(MCR) under Risk Based Capital Adequacy in line of Basel-III.
(Tk in cr)
Particulars 2019
Regulatory Capital : 2,565.14
TIER-1 Capital 1,397.91
Common Equity TIER-1 Capital (CET-1) 1,397.91
Additional TIER-1 Capital (AT-1) -
TIER-2 Capital 1,167.23
Total Regulatory Capital 2,565.14
Total Risk Weighted Assets (RWA) 24,817.64
Capital to Risk Weighted Assets Ratio (CRAR) 10.34%
Common Equity TIER-1 to RWA 5.63%
TIER-2 Capital to RWA 4.70%
Minimum Capital Requirement (MCR) 2,481.76
Internal Control and Risk Management
A system of effective internal controls is a critical component
of a bank’s management and represents the foundation
for ensuring safe and sound operations of the organization.
A system of strong internal controls can help to ensure that
the goals and objectives of a banking organization will be met,
that the bank will achieve long-term profitability targets, and
maintain reliable financial and managerial reporting. Such a
system can also help to ensure that the bank will comply with
laws and regulations as well as policies, plans, internal rules
and procedures, and minimise the risk of unexpected losses or
damage to the bank's reputation.
Internal control is a process constantly monitored by the Board,
the senior management and all levels of personnel. The Board
and senior management are responsible for establishing the
appropriate culture to facilitate an effective internal control
process and for monitoring its effectiveness on an ongoing
basis. However, each individual within an organization must
participate in the process.
Key features of Internal Control System are as follows:
Management oversight and control culture
Risk recognition and assessment
Control activities and segregation of duties
Information and communication
Monitoring activities and correcting deficiencies
The Board of Directors of the Bank has formed an Audit
Committee and Risk Management Committee to properly
perform ICC-related activities with the help of the Compliance
Division, Monitoring Division and Audit & Inspection Division and
Risk Management Division. In addition, the Bank sends reports
to Bangladesh Bank on implementation of ICC policy and self-
assessment of anti-fraud internal control on a quarterly basis
with recommendations of the Bank’s Board Audit Committee.

Human Resource Management
RBL manages its human resources through its
Administration and Human Resource Division. For ensuring
better HR management, the Board has approved a Human
Resource POLICY-2011. The objectives of our human
resource strategies are to attract qualified personnel by creating
a motivated workplace environment and encourage employees
to maintain professional skills and give them the opportunity
to develop and growing their careers with us, while also enabling
us to create a strong management team. Rupali Bank Training
Academy (RBTA) is a platform that provides appropriate training
for our employees to enrich their professional skills. Such an
academy showcases the importance we place on training and
skills development. Details of HR management at RBL have
been attached in the "Report on Human Resources."
Corporate Governance
Rupali Bank is committed to comply with the highest standards
of governance. The Bank has obtained a compliance certificate
on Corporate Governance from a cost and management
accountant firm, as per Corporate Governance Code dated 3
June 2018 Notification No. BSEC/CMRRCD/2006-158/207/
Admin/80 issued by Bangladesh Securities and Exchange
Commission.
Corporate Governance Compliance conditions imposed by
BSEC and Corporate structure enshrined in BRPD Circular
No. 11/2013 have also been given in the "Report on Corporate
Governance" section.
Sustainable Banking
Rupali Bank has been integrating 'sustainability' into its core
banking practices through green banking, corporate social
responsibility, financial inclusion and responsible financial
education. The Bank embraces best practices in sustainable
banking and ensures that its impact brings about positive and
sustainable change in the society.
Corporate Social Responsibility
Our CSR initiatives aim at responding to the huge unmet
demand of the society. We contribute generously to
the sustenance of education, art and crafts, culture, health,
sports, literature, publication, etc in the country, as per
Bangladesh Bank Guidelines.
Rupali Bank contributed Tk 1.45 cr to meet its CSR obligations
in 2019.
Green Banking
Rupali Bank is playing a meaningful role to combat the
challenges of climate disaster created due to unchecked
industrialisation. Different conferences have put thrust for
compensation to poor and developing countries to mitigate the
losses created due to global warming. The Bank remains serious
in its commitment to make its banking operations environment-
friendly. Towards this extent, it refrains from financing projects
that create environmental pollution.
The Bank also prioritises installation of solar panels and biogas
plants. In fact, solar panels have been partially installed in six
branches of the Bank. Details of green banking are discussed in
the "Report on Green Banking".
Rupali Bank Limited
MoU signing ceremony between RBL and Natore Agro Limited
Financial Inclusion
Financial inclusion combats poverty by unblocking advancement
opportunities for the disadvantaged poor, thereby fostering
social inclusion and inclusive socio-economic growth.
The Bank aims at financial inclusion, considering it as a major
dimension of the broader notion of social inclusion, or people's
opportunity for contributing to and benefiting from social and
economic progress. With this backdrop, the Bank has included
the following to achieve the goals of financial inclusion:
Supporting the poor segments of the society through our
wide-ranging CSR initiatives
Providing banking services to the unbanked segments
of the population by implementing Government and
Bangladesh Bank’s inclusion programs
Making access to small-sized loans for income generation/
self-employment
Expansion of Bank branches in rural areas
Drawing refinance line from Bangladesh Bank for
organising agricultural credit programs for fostering rural
economic activities
Extension of microfinance and CMSME activities among
low-income households
Introducing cost-efficient financial services, like mobile
banking and ATM, especially to cover the financially-
excluded communities
Raising low-cost deposits by opening school banking
accounts as means to achieve financial inclusion
A detailed report on our financial inclusion activities is provided
in this report.
Contribution to the National Economy
Commercial banks play an important and active role in the
economy of a country through supporting capital formation,
promoting trade and growth of industry through financing and
enhancing financial inclusion by increasing geographical and
demographic coverage, generating employment, augmenting
individual/household incomes, etc. As a financial services
provider of repute, Rupali Bank contributes to economic
prosperity by providing diversified financial products and
services among various market segments. The Bank envisages
achieving the Government's industrialisation policy goals
Annual Report 2019 77
through credit disbursement to different industrial sectors,
including jute, leather, small and cottage industries, cold storage
chains, textiles and garments, engineering, food, chemicals,
shipping, footwear, etc.
As on 31 December 2019, Rupali Bank had a total credit
exposure of Tk 30,672.40 cr. Further, the Bank disbursed Tk
47.63 cr to CMSME businesses in 2019. In addition, working
capital financing represents an important credit focus of Rupali
Bank, which works as an important driver for many small trade
and businesses. Through its export/import business, the Bank
contributes to the foreign currency reserves of the country.
The Bank has been active in receiving remittances from
Bangladeshi workers working abroad. Inward foreign remittance
plays a significant role in reducing the Bank's dependency on
interbank market for payment of import bills in foreign currency.
In 2019, total foreign remittances stood at Tk 2,256.92 cr.
Under the central bank's directives, our financial inclusion
programs are implemented through opening accounts of
‘unbanked’ people so that they can participate in and benefit
from the mainstream economy.
As part of its social responsibility initiatives, Rupali Bank
responds to different financing issues of social, educational,
health, cultural and environmental areas.
Rupali Bank, through its two full-fledged subsidiaries, engages
extensively in the capital market operations of the country.
We strongly believe that sustainable economic growth requires
us to place due importance to environmental factors. RBL,
therefore, places substantive priority in financing green projects.
Contribution to the National Exchequer
In connection with Government revenue collection targets,
RBL has contributed to the process in the form of source tax,
corporate tax, VAT and excise duty. RBL deposits the amount to
the national exchequer.
Total payment to the national exchequer during the year 2018
and 2019 are:
(Tk in cr)
Particulars 2019 2018
Tax deducted at source 182.58 201.07
VAT deducted at source 36.25 22.98
Excise duty deducted 29.38 34.03
Corporate tax 94.04 85.34
Total 342.30 343.42
Further, it has been noted that industrial and economic recovery
generally happens through banks and we are positive in this
regard as we have a potential opportunity in the Government’s
stimulus and financial relief programs. Against the backdrop
for achieving our short- and long-term goals, RBL will train a
spotlight on the following:
RBL is well-placed to meet the challenges of 2020 and will
strive to capitalise on any prevalent growth opportunities
The Bank will prioritise focus on such areas/sectors as
retail, CMSMEs and remittance
RBL will bring CMSMEs under its mainstream loan portfolio
to foster accelerated employment generation
Continue to launch new deposit, loan and remittance
products and innovative services
Focus on branch expansion in both rural and urban areas
Expand alternate delivery channels for enabling wider
access to our banking products and services
Increased our Authorised Dealer branches
Expand mobile banking for expanding coverage to target
markets
Set up two exchange houses in the UK and USA as a joint
venture project to ensure better remittance services for our
NRBs
Establish more
remittance drawing arrangement with
exchange companies/banks
The Bank will place more emphasis on sustainable banking,
including green banking, corporate social responsibility,
financial inclusion, etc.
Continue to develop the employee and borrower database
Engage in the relocation of branches and branch up-
gradations and modernisation in commercially important
locations
Develop all modules of CBS and enable customization of
reporting in relation to our online banking services
Financial Analysis Total Assets
Total assets of RBL stood at Tk 49,724.93 crore in 2019 from
Tk 46,328.98 crore in 2018 registering a growth of 7.33%. The
increase in asset of RBL was mainly driven by growth of
customer deposits. The growth of deposits was used for
funding growth in credit and holding of securities for
SLR purpose.
Growth of Balance Sheet Items

Future Outlook Outstanding Tk in crore Growth

2019 2018 (%)
According to the Global Financial Stability Report (GFSR) of
Assets 49,724.93 46,328.98 7.33%
October 2018, global financial stability continues to strengthen,
supported by extraordinary policy measures, regulatory Deposits 41,462.43 38,954.95 6.44%
developments and cyclical upturn in growth. Loans and advances 30,672.40 24,749.06 23.93%

Banks and financial institutions are at the heart of the credit Investment
intermediation process between savers and investors and
provide critical services to diverse stakeholders that foster RBL's investment stood at Tk 10,364.62 cr as on 31 December
holistic socio-economic growth. 2019.

78
 Rupali Bank Limited

Loans and Advances

Loans and advances comprised Tk 30,672.40 cr in 2019,

demonstrating growth of 23.93% during the year. Yield on
loans and advances stood at 6.36% due to reduction of
lending rates on corporate and medium -scale financing, as
imposed by Bangladesh Bank.

Borrowings from Financial Institutions and Agents

Borrowings represent RBL's borrowing against refinance from

Bangladesh Bank. Refinance was mobilised for rural financing
and against Nostro accounts abroad.

Deposits

Deposits grew by 7.60% in 2019. This growth was supported ALCO Wires and Cables Ltd. financed by RBL
by branch network expansion and improvement in the quality
of services provided to customers. Further our retail liability Net Interest Income
team carried out campaigns for mobilization of no/low cost
deposits. No/low cost deposits comprised 44.11% of the RBL's net interest income stood at Tk 1.88 cr in 2019. Interest
deposits, as against 50.36% in the previous year. However, earned from loans and advances and profit earned on
fixed deposits remained the main component of deposits, investment remained the principal component of interest
contributing 55.89% of the total deposits. Clients of the Bank income. The interest cost of deposits was the main component
included individuals, corporations, NGOs, NBFIs, Government of interest expenses.
and private bodies, etc.
Investment Income
Deposit mix 2019 (Tk in crore)
20,831.4 RBL's investment income consists of interest earned on
87,11.22 treasury bills and bonds, and dividend received on shares.
6,032.43 Investment income increased by Tk 229.61 cr and stood at Tk
2,339.92 872.35 cr during the year 2019.
1,876.82
705.58
638.27 Non-interest Income
321.58
Non-interest income of RBL stood at Tk 256.41 cr in 2019, as
compared to Tk 230.22 cr in 2018.
(Tk in cr)

Mobile Bills Other Current & Scheme Short term Savings FDR Particulars 2019 2018
Banking payable Deposit Contingent Deposit deposits
Commission 33.96 15.57
Exchange 122.33 99.48
Outstanding Growth Service Charge 27.17 50.74
Type of deposits (Tk in cr) percentage Miscellaneous 72.48 63.82
2019 2018 (%)
Other operating income 0.47 0.61
Current and contingent 1,876.82 3,567.26 -47.39% Total 256.41 230.22
Bills payable 638.27 433.93 47.09% Non-interest Income (Taka in crore)
Savings 8,711.22 7,196.95 21.04% 122.33 2018 2019
Short-term deposits 6,032.43 6,878.59 -12.30% 99.48
FDR 20,831.44 16,514.15 26.14%
72.48
Scheme deposits 2,339.92 2,824.86 -17.17% 63.82
50.74
Mobile banking 321.58 282.97 13.64%
33.96
Other deposits 705.58 536.64 31.48% 27.17
15.57
Total deposits 41,462.43 38,954.95 6.44%
0.47 0.61
Shareholders' Fund Commission Exchange Service Charge Miscellaneous Other operating
income
shareholders' fund position was Tk 1,687.60 cr at the close of
2019. Paid-up capital of the Bank stood at Tk 414.17 cr as on Total Operating Expenses
31 December 2019. Statutory reserve stood at Tk 344.30 cr.
Total operating expenses increased by Tk 461.62 cr during
Distributable profit stood at Tk 39.65 cr during the year.
the year, mainly owing to increase in personnel and other
Strong growth achieved in shareholders' fund will help the
operating expenses. To match with the growth of CMSMEs/retail
Bank to expand its business, going forward.

Annual Report 2019 79

businesses and branch expansion, substantial manpower was Provision for Classified Loans
recruited, especially in the CMSME and retail segments. RBL also
focused on developing its brand image and thus enhanced its Total provision against classified loans was Tk 1,004.33 cr in
promotional and advertisement expenses. This strategy added 2019, against Tk 1,251.71 cr in the previous year. Provision
value to the business. The Bank's cost-income ratio stood at against unclassified loans was made to the extent of Tk 537.05
93.56% cr in 2019, against Tk 206.66 cr in 2018. General provision
requirements on off-balance sheet outstanding had to be
Employee productivity continued to grow, which is evident from provided at Tk 30.19 cr in 2019, as against Tk 19.69 cr in
the following ratio: the previous year. It is to be noted that general provision
is regarded as Tier-II capital of the Bank and provides
(Tk in cr )
safeguards against any future defaults and supports business
Particulars 2019 2018 growth by strengthening the capital base.
Income per employee 0.53 0.54
Particulars 2019 2018
Profit before tax per employee 0.02 0.01
NPL ratio 16.15% 19.21%
Asset per employee (excluding 8.81 9.40
contingent) Provisions 57.36% 55.00%

Appropriation of Profit Recovery against Classified and Written-off Loans

In 2019, the Bank earned operating profit of Tk 193.23 RBL was able to recover Tk 138.69 cr in cash against classified
cr before provision and tax which has been appropriated as loans and Tk 5.51 cr cash against written-off loans in 2019.
follows:
Net Profit before Tax
(Tk in cr)
After provisions, net profit before tax stood at Tk 95.68 cr.
Particulars 2019 2018
Profit before Provision & Tax 193.23 309.50 Provision for Income Tax
Provision for Loans & Advances & off 93.57 158.13 Provision against income tax was at Tk 32.97 cr in 2019, and net
Balance Sheet Items deferred tax was Tk 8.07 cr for the year 2019.
Other Provision 3.97 79.45
Total Provision 97.55 237.58 Net Profit after Tax
Net Profit before Tax 95.68 71.92 Net profit after tax stood at Tk 54.64 cr in 2019. Earnings per
Current Tax 32.97 16.03 share (EPS) stood at Tk 1.32 in December 2019. Average ROA/
Deferred Tax 8.07 17.97 ROE stood at 0.03% and 0.80%, respectively.
Total Provision for Tax 41.04 34.00
Statutory Reserve
Net Profit after Tax 54.64 37.92
Add: Retained Earning Surplus from 4.15 17.49 As per Bank Company Act 1991, 20 per cent of operating
Previous Year profit before tax is required to be transferred to statutory
reserve. As such, an amount of Tk 19.14 cr was transferred to
Retained Earnings Surplus 19.14 14.02
statutory reserves.
Analysis of Income Statement
Preparation of Financial and other Non-financial
SL Statements
Particulars 2019 2018
No
Financial statements are prepared by the Bank in line with
1 Net interest income 1.88 252.74 the Bangladesh Accounting Standards (BASs), Bangladesh
2 Investment income 872.35 642.74 Financial Reporting Standards (BFRSs) and the format
3 Non-interest income 256.41 230.22 prescribed by Bangladesh Bank vide BRPD Circular No. 14
dated 25 June 2003. All financial statements provide a true
4 Total operating income 1,130.65 1,125.70
and fair observation of the position of the bank affairs as on 31
5 Total operating expenses 937.42 816.20 December 2019. The results of operation and the enclosed
6 Profit before tax and provision 193.23 309.50 disclosures are prepared in accordance with the applicable
7 General Provision on loans 81.53 9.13 sections of the Bank Company Act, 1991 and other applicable
8 Provision for classified loans 1.54 149.00 laws and regulations. Financial statements are duly certified
by the statutory auditors with an unqualified report.
Provision for
9 10.50 -
Off - Balance Sheet Item Other non-financial reports, such as those on management
10 Other provisions 3.97 79.45 review and analysis, corporate governance, risk management,
11 Net profit before tax 95.68 71.92 CSR, sustainability, human resource management, green
banking, financial inclusion, etc., have been prepared in line
12 Provision for tax 41.04 34.00
with regulatory requirements and for enhancing transparency
13 Net profit after tax 54.64 37.92 among stakeholders.

80

Annual Business Conference 2019
Dividends
In order to achieve the regulatory capital adequacy ratio of
the Bank, the Board of Directors have recommended 5% stock
dividend for its esteemed shareholders for the year 2019. As
a result, the new paid-up capital of the Bank will stand at
Tk 534.88 cr in 2019, against Tk 414.17 cr in 2018. An expanded
capital fund will enable the Bank to accelerate its business
activities and contribute to shareholder value enhancement.
Shareholder Value Creation
RBL remains committed to sustainable shareholder value
creation. The Bank has disbursed dividend amounting to Tk []
mn over the last five years, including the dividend that has been
announced for 2019. This represents a respectable payout for a
state-owned commercial bank.
Meetings of the Board of Directors
During the year, 26 meetings of the Board of Directors, 12
meetings of the Audit Committee, 2 meetings of the Executive
Committee and 6 meetings of the Risk Management Committee
were held in 2019. Discussions were done and decisions were
taken on various financial, operational, administrative and
policy-making matters of the Bank.
Rotation of Directors
In accordance with the provisions of section 91 (2) of the
Companies Act, 1994, regulation 79 & 80 of schedule 1 of
that Act and Article No 131, 132 and 133 of the Articles of
Association of the Bank, one -third of the senior Directors
from among the existing directors of the Board of Directors
will retire each year in the Annual General Meeting. At
present, the number of existing nominated directors, except
the Managing Director and the Independent Director is 9
(nine). Senior directors who will retire at the meeting will be
re-appointed by the Government and they will be holding their
Rupali Bank Limited
position for the period, as fixed by the Government. Under this
backdrop, three senior Directors of the Board will come under
rotation at the AGM.
Appointment of Auditor
According to provisions of section 210 of the Companies
Act, 1994, external auditor firms were engaged in conducting
the audit of accounts for the year under report, i.e. 2019. As per
policy issued in 1991 by Bangladesh Bank, the same external
auditor firm is eligible for appointment as external auditor for 3
consecutive years. Two new external auditor firms for auditing
the Bank’s accounts for the year 2019 will be appointed at the
34th Annual General Meeting of the Bank.
Annual General Meeting
Annual General Meeting will be held on 3 September, 2020. The
Directors' Report and financial statements were approved
in the 1102th Board meeting held on 28 June, 2020 for
presentation to shareholders.
Gratitude
The Board of Directors of Rupali Bank expresses their profound
gratitude to the Ministry of Finance of the Government of the
People's Republic of Bangladesh, Bangladesh Securities and
Exchange Commission, Dhaka Stock Exchange Ltd, Chittagong
Stock Exchange Ltd, Bangladesh Bank, Registrar of Joint Stock
Companies of Bangladesh, Central Depository Bangladesh
Limited (CDBL) and other regulatory organizations for their
extended co-operation and cordial support, regular guidance
and valuable counsel.
I convey my heartfelt thanks to the Executives, Officers and
staff of the Bank for upholding our Bank’s vision to contribute
to national development. The Board of Directors also offers
appreciation and recognition to external auditors engaged in
auditing the accounts of the Bank as well as all officers/staff
involved in the preparation of the Annual Report. I commend
their untiring efforts.
In conclusion, I, on behalf of the Board of Directors, express our
gratitude to esteemed customers, patrons, well-wishers and
valued shareholders for extending their relentless support and
co-operation to the Bank.
As we progress in our vision of building a world-class financial
institution of Bangladesh, I invite you to be a part of our journey.
I wish you all much welfare and prosperity.
On behalf of the Board of Directors,
(Monzur Hossain, MP)
Chairman
Annual Report 2019 81
REPORT ON
CORPORATE GOVERNANCE
As we continue to consolidate our position as a leading frontline
financial services brand of Bangladesh, Rupali Bank is committed
to embrace the highest standards of corporate governance. We
remain well-aware of the fact that our growing prominence
entails additional responsibilities. Hence, we take into serious
consideration the high expectations of all our shareholders
and stakeholders, and as we continue to move forward, we
constantly re-evaluate our performance and delivery in order
to match those ideals. Importantly, our sustainable success
depends on our stakeholders knowing that we are conducting
our business in the right way, and that we are promoting the
right values and ethics in all that we do.
Throughout the year 2019, our Board continued to meet their
key targets and carried out their responsibilities diligently. To
further strengthen our governance practices, we continued to
raise awareness across the Bank and the subsidiaries on the
importance of adhering to regulatory rules and guidelines.
BOARD OF DIRECTORS, CHAIRMAN, MANAGING
DIRECTOR & CEO
1.1 Company’s policy on appointment of Directors
Rupali Bank has appointed Directors as per the Bank Company
Act 1991 (amended in 2013), Companies Act 1994, BRPD Circular
No. 11/2013. Notably, the process of appointment of a Director
commences with nomination made by the Financial Institution
Division of the Ministry of Finance. Thereafter, the Board of
Directors of the Bank dispatches the proposal for appointment
of the said Director to Bangladesh Bank. Bangladesh Bank
subsequently approves the appointment. The role of the Board
and its committees are clearly expressed in BRPD Circular No.
11/2013.
1.2 Non-Executive Directors
All Directors of RBL are non-executive, except for the Managing
Director & CEO. There are 08 Directors, including Managing
Director & CEO. The Managing Director & CEO is an Ex-officio
Director of the Board.
1.3 Independent Director
The Bank’s Board has appointed 02 (Two) Independent Directors
in consonance with the latest corporate governance notification
of BSEC and the Bank Company Act 1991 (amended in 2013).
Independent Directors enjoy full independence in terms of
carrying out their duties and responsibilities. Independent
Directors are well-conversant in the field of business and other
professional areas.
1.4 Chairman is Independent of CEO
As per the Company Act 1994, the Chairman and the Managing
Director & CEO of the Bank are individual entities so that the
Chairman is not required to intervene in the day-to-day affairs
and matters of the Bank. The Non-Executive Chairman’s duties
are typically limited to matters directly related to the Board, such
82
as chairing Board meetings, organizing and coordinating the
Board’s activities, chairing the AGM and conducting the meeting
as set in the agenda, reviewing and evaluating the performance
of the Managing Director and the other senior executives, etc.
1.5 Responsibilities of the Chairman of the Board
The responsibilities of the Chairman are defined in BRPD Circular
No. 11/2013, which is fully complied with by the Bank. There is
a clear delineation of responsibilities between the Board and
the management, with the management being accountable for
the execution of policies and the accomplishment of the Bank’s
objectives. As per guidelines of Bangladesh Bank, the Chairman
of a bank does not have to participate in or interfere with the
administrative or operational/routine affairs of the organization.
Independence of Non-Executive Directors
All Non-Executive Directors of the Bank enjoy autonomy and
independence, as expressed in the corporate governance
guidelines of Bangladesh Bank and Bangladesh Securities and
Exchange Commission.
1.6 Annual Appraisal of the Board’s Performance
To achieve the strategic objectives of RBL, the Board of Directors
are responsible for setting the annual business plans, formulating
policy, confirming material internal aspects of the Bank’s
operations, taking decisions on the potential establishment
of branches, evaluating and assessing the performance of
the Managing Director, reviewing operational and financial
performance of the Bank, appraising risks and management
of internal control and compliance, approving information
disseminated to shareholders at the Annual General Meeting
(AGM), approving capital expenditure plans, setting borrowing
limits, reviewing the Bank’s systems of financial and budgetary
control, approving the human resources policy and reviewing and
ratifying decisions of the various sub-committees of the Board, etc.
Board members have always appraised shareholders at the
AGM and this constituency has been generally supportive of the
Board’s decision.
1.7 Policy on annual evaluation of the CEO by the Board
The duties and responsibilities of the Managing Director & CEO
are delineated in the BRPD Circular No. 18/2013. In terms of
the financial, business and administrative authorities vested
upon the Managing Director & CEO by the Board, the CEO shall
discharge his responsibilities. He shall remain accountable for
the achievement of financial and other business targets by
means of a well-articulated business plan, ensure its efficient
implementation thereof and facilitate prudent administrative
and fiscal management. The CEO shall also ensure compliance
with the Bank Company Act 1991 and other relevant laws and
regulations in discharging routine functions. At the time of
presenting any memorandum in the Board meeting or Board
Committee Meeting, the CEO must point out if there has been
any potential deviation from the Bank Company Act 1991 and

other relevant laws and regulations. The CEO shall report to
the Bangladesh Bank of any violation of the Bank Company Act
1991 or of any other laws/regulations. The recruitment and
promotion of all staff of the Bank, except those two tiers
below him, shall rest on the CEO. He shall act in such cases
in accordance with the approved service rules on the basis
of the human resources policy and sanctioned strength of
employees, as approved by the Board. The authority relating
to transfer of and disciplinary measures against the staff,
except those one tier below the CEO, shall rest on him, which
he shall apply in accordance with the approved service rules.
The performance evaluation of the MD is conducted by the
Board through various reports, including performance report
(KPIs) of the Bank. The Managing Director & CEO’s performance
is measured by the KPIs of the Bank as APA (Annual Performance
Agreement) achievements, as signed with the FID of the Finance
Ministry, Mou with Bangladesh Bank..
1.8 Policy on Training of Directors
The policy on training of Directors embraces the policy
guidelines and circulars issued by the regulatory authority to
be conveyed to the Directors through training, information
and discussion sessions with regards to corporate governance
compliance issues. The Bank arranged sessions on the latest
issues circulated by the Bangladesh Bank to raise awareness and
to improve understanding regarding the rules and regulations to
be applied in the business. Further, training on Basel-III and AML
was given special emphasis during the year.
1.9 Directors’ Expertise in Finance and Accounting
There is one Director on the Board of the Bank who is
professionally qualified Cost and Management Accountant.
They are highly knowledgeable in the field of accounting and
finance. The other Directors are also well-conversant in business
related disciplines.
1.10 Attendance of Directors
Director attendance has been given towards the end of this
chapter.
1.11 Corporate Governance Reviewed by the External
Auditors
A corporate governance compliance certificate taken from
our external auditor is attached at the end of this chapter. The
compliance of corporate governance is included in the Directors’
Report, which is reviewed by Podder & Associates, Cost and
Management Accountants.
2. VISION / MISSION AND STRATEGY
2.1 Vision-Mission of RBL
The vision and mission of RBL, as stewarded by the central bank’s
guidelines, are approved by the Board. These are disclosed in the
Annual Report, the Bank’s website and other publications as well.
2.2 Business Objectives and Areas of Business
Our business goals and objectives are set in our vision and
mission statements. Business strategies are identified and our
strategic objectives are clearly stated in the Annual Report. As
Rupali Bank Limited
the Board of Directors is the highest authority in relation to
formulating the policies of the Bank against the backdrop of the
dynamic laws and regulations, the Board of Directors frame the
business targets and the work plans of the Bank.
2.3 Strategies to achieve RBL’s Business Objectives
Strategies to achieve the business goals are set by RBL at the
beginning of the year with a view to align its business objectives
for the year with its strategies. Strategies set to achieve the
business objectives can be found in the “Our Strategies
Objectives” section of the Annual Report.
3. AUDIT COMMITTEES
3.1 Appointment and Composition
The Board has appointed the members of the Executive
Committee, Audit Committee and Risk Management Committee,
as per Bangladesh Bank guidelines.
3.1.1 Chairman of the Audit Committee
The Chairman of the Audit Committee is an Independent
Non-Executive Director. He performs his duties independently,
as determined in BRPD Circular No. 11/2013.
3.1.2 Terms of reference of Independent Director
As per the status of compliance with the conditions
imposed by the Commission’s Notification No. BSEC/
CMRRCD/2006-158/207/ADMIN/80 dated 03 June 2018 issued
under section 2CC of the Securities and Exchange Ordinance,
1969: (Report under Condition No. 9.00), the Audit Committee
fulfills a key role in the finalization of the financial statements
of the Bank, overseeing the financial reporting process,
monitoring accounting policies and principles, monitoring
internal control risk management processes, overseeing hiring
and performance of external auditors, reviewing along with the
management the annual, quarterly and half-yearly financial
statements before submission to the Board for approval,
reviewing the adequacy of internal audit function, etc.
Further, the committee is also empowered to investigate/
question any employee of the Bank. It can also take external
expert counsel, if deemed necessary.
3.1.3 Non-Executive Directors
The Board of Rupali Bank has 08 (eight) Non-Executive Directors,
including two Independent Directors. The Managing Director
is an ex-officio member of the Board. The number of Board
members is within the limit set by the Bangladesh Bank.
3.1.4 Qualification of members of the Audit Committee
All the members of the Audit Committee are well-versed in
the finance sector. One Director of the Board has expertise in
finance and accounting. He is a qualified Cost and Management
Accountant from ICMAB. His main areas of interest include
international accounting, IAS/IFRS, forensic accounting, creative
accounting and capital markets. Another Board member is also
a qualified Cost and Management Accountant from ICMAB and is
also a Board Member of South Asian Federation of Accountants
(SAFA).
Annual Report 2019 83
Another Board member was a former bureaucrat who served as
a Director General at Railway, PT&T, Works, Local & Revenue and
Defense Audit Directorates. He
joined as Assistant Accountant General in 1986 in the BCS Audit
and Accounts Cadre.
3.1.5 Head of Internal Control and Compliance Direct Access
to Audit Committee
The Bank’s Head of Internal Control and Compliance has direct
access to the Audit Committee and he puts up all the memos in
the Audit Committee meetings.
3.1.6 Attendance of the Audit Committee
The Audit Committee conducted 12 (twelve) meetings in 2019.
The attendance status of the meetings is given towards the end
of this chapter.
3.2 Objectives & Activities
3.2.1 Review by the Audit Committee
The committee usually engaged in reviewing all the quarterly,
yearly financial statements with notes and disclosures of the
Bank. The committee also reviewed and examined whether the
Bank follows the International Accounting Standard (IAS) and
International Financial Reporting Standard (IFRS) adopted
as Bangladesh Accounting Standard (BAS) and Bangladesh
Financial Reporting Standard (IFRS) by the Institute of Chartered
Accountants of Bangladesh (ICAB), Bank Company Act 1991
(Amended 2013), the Companies Act 1994, the Securities and
Exchange Commission Rules, DSE & CSE (Listing) Regulation
2015, Bangladesh Bank guidelines and circulars, other laws and
rules applicable in Bangladesh.
3.2.2 Role of the Audit Committee
Internal Control:
Evaluate whether the management is setting the
appropriate compliance culture by communicating the
importance of internal control and the management of risk
and ensuring that all employees have clear understanding
of their roles and responsibilities;
Review the management’s actions in computerization
of the Bank and its applications and also the Bank’s
Management Information System (MIS);
Consider whether internal control strategies recommended
by internal and external auditors have been implemented
by the management;
Consider reports relating to fraud, forgery, deficiencies in
internal control or other similar issues detected by internal
and external auditors and inspectors of the regulatory
authority and place it before the Board after reviewing
whether necessary corrective measures have been taken
by the management.
Financial Reporting:
Audit Committee will check whether the financial
statements reflect the complete and concrete information
and determine whether the statements are prepared
according to existing rules & regulations and standards
84
enforced in the country and as per relevant prescribed
accounting standards set by Bangladesh Bank;
Discuss with the management and the external auditors to
review the financial statements before their finalization.
Internal Audit:
The Audit Committee will monitor whether internal audit is
working independently from the management.
Review the activities of the internal audit and the
organizational structure and ensure that no unjustified
restriction or limitation hinders the internal audit process.
Examine the efficiency and effectiveness of the internal
audit function.
Examine whether the findings and recommendations
made by internal auditors are duly considered by the
management or not.
3.2.3 External Audit Function
Effective coordination of external audit function
The committee coordinates with external auditors as per their
requirement. The committee also helps to prepare and finalize
the financial statements during the year. The progress of the
audit by the external auditor is reviewed by the committee.
Ensure independence of external auditors
The committee ensures independence of external auditors, so
that they can audit freely and fairly.
Review the external auditors
The findings of external auditors have been taken seriously to
meet irregularities, if any. For this, the committee instructs the
management on the findings of the auditor.
Review and approve any non-audit work assigned to
the external auditor and ensure that such work does not
compromise the independence of the external auditors
External auditors were not assigned any work other than
statutory audit. The independence of external auditor was not
compromised.
Recommendation of external auditor for appointment/
reappointment
The Audit Committee recommends every year the appointment/
reappointment of the external auditor.
3.2.4 Selection of appropriate Accounting Policies
The Audit Committee selects appropriate accounting policies
that are in line with IAS, IFRS, BAS, BFRS and other regulatory
guidelines while reviewing the financial statements of the Bank
for the Annual Report.
3.2.5 Annual and interim financial releases
The Audit Committee reviews the annual and interim financial
releases and recommends these to the Board of Directors for
approval.
3.2.6 Reliability on the management information
The Audit Committee ascertains that the information placed for
computation of financial disclosures is realistic.
 Rupali Bank Limited

4. INTERNAL CONTROL & RISK MANAGEMENT
Internal control is a dynamic and continuous series of activities
planned, implemented and monitored by the Board of Directors
and the management at all levels within an organization. It
is designed to provide reasonable assurance regarding the
achievement of objectives relating to operations, reporting and
compliance.
According to Bangladesh Bank guidelines, all departments and
business lines are responsible for developing, implementing
and ensuring that the controls are observed and not breached.
Individual departments/business lines remain vigilant and
participate fully in the internal control regime where ICC acts as
the internal watchdog. The organizational structure of Internal
Control & Compliance of Rupali Bank is appended below:

Structure of Internal Control & Compliance

Board of Directors

Audit Committee

Managing Director
& CEO

Head of Internal
Head of Audit Control & Compliance
& Inspection

Head Office Audit Head Office Head Office

and Inspection Div. Compliance Div. Monitoring Div.

Divisional Office Local Office

ICC Unit ICC Unit

Zonal Office Corporate Branch

ICC Unit (DGM Headed) ICC Unit

Responsibilities of the Head of ICC
The Head of ICC is responsible for the complete administration
of Internal Control and Compliance (ICC) of the Bank. The rank of
the Head of ICC of RBL is lower than one step immediately below
the MD & CEO, and he is responsible to report his activities and
findings to the senior management.
step to adopt regulatory and other changes. The Board ensures
the compliance of all laws, rules and regulations issued by the
regulatory authorities (Ministry of Finance, Bangladesh Bank,
Bangladesh Securities & Exchange Commission, etc.). An Audit
Committee formed by the Board which assists the Board to
monitor the effectiveness of the performance. The Board of
Directors also held periodic review meeting with the senior
management to evaluate the effectiveness of the internal control
system of the Bank. The Board of Directors has established a
Risk Management Committee to evaluate and review the overall
risk management system of the Bank.
4.1 Director’s Responsibility to Establish Internal Control
and Compliance
The Board of Directors also reviews the ICC Policy on an annual
basis, gives approval and takes necessary steps.
An essential element of an effective system of internal control
is a strong control culture. It is the responsibility of the Board
and the senior management to emphasize on the importance of
internal control through their actions. This includes the ethical
values that the management upholds in their business dealings,
both inside and outside of the organization.

Annual Report 2019 85

4.2 Key Features of The Internal Control System
Key features of Internal Control System are as
follows:
1. Management oversight and the control culture
2. Risk recognition and assessment
3. Control activities and segregation of duties
4. Information and communication
5. Monitoring activities and correcting deficiencies
4.3 Review of Adequacy of Internal Control System
Responsibilities of Internal Control & Compliance Division:
The Board of Directors of the Bank has constituted the Audit
Committee for ensuring the smooth and streamlined functioning
of internal control and compliance-related activities with the
help of the Audit & Inspection Division, Compliance Division,
Monitoring Division and Risk Management Division. The Audit
& Inspection Division conducts regular/periodic and special
audits/inspections of the Bank internally. The Compliance
Division ensures the implementation of all internal as well as
external rules and regulations. The Compliance Division is the
sole contact point for all regulatory inspections conducted on
the operations of the Bank. The Monitoring Division ensures
that internal control continues to operate effectively. The main
objectives of the Monitoring Department is to conduct effective
monitoring on the proper implementation of various control
tools (DCFCL, QOR, LDCL, Self Assessment Anti-Fraud Internal
Control Checklist, etc.) across all branches and divisions at the
Bank’s head office.
4.4 Disclosure of the Identification of Risks Internally &
Externally
An effective internal control system requires that material risks
that could adversely affect the achievement of the Bank’s goals
are being recognized and continually assessed. This assessment
covers all risks, like credit risk, country and transfer risk, market
risk, interest rate risk, liquidity risk, operational risk, legal risk
and reputational risk, etc. Internal controls may need to
be potentially revised to appropriately address any new or
previously uncontrolled risks.
4.5 Strategies Adopted to Mitigate the Risks
A number of steps, including stress testing, have been
introduced to manage and mitigate risk occurrences. Details
of risk management at RBL are given in the “Report on Risk
Management & Control Environment” chapter.
5. ETHICS AND COMPLIANCE
The statement of core values and ethical principles is approved
by the Board. Our core values include social responsibility,
performance, integrity, respect, innovation and teamwork.
86
5.1 Statement of Ethics and Values
Our ethical principles focus on fairness, equality, honesty
and integrity, belief in our people, teamwork, good corporate
governance and corporate social responsibility.
All ethical issues are adopted in the core values and ethical
principles statement and are disclosed in the Annual Report as
well.
5.2 Communication of Statement of Ethics
Details of our core values and ethical statement are made
available on our website and Annual Report. The statement on
ethics is communicated to all our employees and also amongst
our shareholders, customers and other stakeholders.
5.3 Board’s statement on Ethics
The Board is committed to embrace the highest levels of code
of conduct and ethical principles. The Board of Directors also
monitors the same rigorously and without any deviations.
5.4 Establishing effective anti-fraud programs and controls
The Compliance Division provides effective training on
anti-fraud and forgery conducted by RBTA as part of raising
awareness among all tiers of employees.
The Vigilance and Intelligence Division makes instant
visits to investigate if any serious misappropriation or
irregularities have been identified.
The Anti-Money Laundering and CFT Division rigorously
works towards ensuring regulatory compliance, such
as with anti-money laundering, and combating against
terrorist financing, etc. As a part of this Division, a large
number of officers were provided with extensive training in
2019.
Risk Management Division, HRD, Compliance and
Monitoring Division act as a whistleblower at RBL.
6. REMUNERATION COMMITTEE
6.1 Role of the Remuneration Committee
As per Bangladesh Bank guidelines, the Board shall have
no committees except the Executive Committee, the Audit
Committee and the Risk Management Committee. Hence at
RBL, we do not have a Remuneration Committee. However, the
Board reviews and fixes the remuneration paid to all levels of
employees, Directors and others from time to time.
6.2 Non-Executive Directors in the Committee
The remuneration of Non-Executive Directors is decided by the
Board.
6.3 Key Policies on Remuneration
Key policies on remuneration of the Bank’s employees are
determined as per the national pay scale.

6.4 Attendance of meetings
Non-Executive Directors (Directors other than the Managing
Director) of the Board representing shareholders do not take any
remuneration or reimbursement of any expenses for attending
Board meetings or for any other purposes. Board members
received honorarium of Tk. 8,000.00 (Taka eight thousand) each
for attending a Board/committee meeting.
6.5 Disclosure of Remuneration
The honorarium drawn by the Directors are disclosed towards
the end of this chapter.
7. HUMAN RESOURCES
7.1 Human Resource Development and Management
Disclosure of general description of the policies and practices
codified and adopted by RBL with respect to human resource
development and management, including succession planning,
merit-based recruitment, performance appraisal, promotion
and reward and motivation, training and development,
grievance management, counseling, etc., are discussed in the
report on Human Resources.
7.2 Organizational Chart
The corporate structure of RBL is shown at the end of this
chapter.
8. COMMUNICATION TO SHAREHOLDERS &
STAKEHOLDERS
8.1 Policy on Communication with shareholders
The Share Division of Rupali Bank keeps shareholders and other
stakeholders up-to-date on relevant material information. RBL
also disseminates updated investor information on its website:
www.rupalibank.org
8.2 Policy on Ensuring Participation of Shareholders at the
AGM
To hold a successful Annual General Meeting (AGM), Rupali
Bank declares the date of AGM at a stipulated time, dispatches
the Annual Report and other required documents and arranges
the AGM in a convenient place and time. Shareholders are free
Rupali Bank Limited
to speak in the meeting. Complaints, suggestions, proposals
of shareholders are minutely recorded in minutes for further
consideration and implementation.
9. ENVIRONMENTAL AND SOCIAL OBLIGATIONS
9.1 RBL Policies and Practices Relating to Social and
Environmental Responsibility
Sustainable banking creates long-term resilience and also
consistent economic and social value. This approach is based
on certain principles that not only consider profit, but also
economic and social benefits. The primary objective of
sustainable banking is to maintain financial and social stability.
RBL has been pursuing a dedicated policy and also adopting
instructions in all possible areas of integrated sustainable
banking. The sustainable banking initiatives of RBL during 2019
continued to be undertaken under the three broad categories
of green banking, corporate social responsibility and financial
inclusion. The details are discussed in the respective chapters
placed in this report.
9.2 Activities Undertaken by RBL
As per Bangladesh Bank guidelines, RBL has established a
Sustainable Finance Unit and Sustainable Finance Committee.
RBL financed various green banking projects totaling
Tk. 677.00 crore up to 2019. Green finance projects
include those in the renewable energy space, while
also representing energy-efficient technologies, brick
manufacturing, non-fire block bricks manufacture, solid
waste management, liquid waste management, alternative
fuel from tires, water treatment plant, etc.
Rupali Bank extends financial support to empower poor
and backward communities and also the under-privileged.
Such facility also covers areas, like education, sports,
culture, health, relief operations, etc. Rupali Bank invested
a sum of Tk. 1.45 cr in 2019 as social expenses.
Rupali Bank brought the underprivileged segments of
the society, like poor farmers, unemployed youth, etc.,
under the folds of institutional finance. Students between
the ages of 6-18 years deposited Tk. 73.13 crore in bank
accounts operated by RSBA. Under social banking, a total
of 7,17,260 accounts are operative. A total of Tk. 88.50 crore
was deposited in financial inclusion accounts by the close
of 2019.
Annual Report 2019 87
CERTIFICATE ON CORPORATE GOVERNANCE

88
 Rupali Bank Limited

BSEC CHECKLIST ON
CORPORATE GOVERNANCE
As Per condition no.1(5)(xxvi)
Rupali Bank Limited
Status of Compliance with the Corporate Gevernance Code (CGC)
For the year ended 31st December 2019

Status of compliance with the conditions imposed by the Commission's Notification No.BSEC/CMRRCD/2006-158/207/Admin/80,
dated 03 June 2018 issued under section 2CC of the Securities and Exchange Ordinance, 1969:
(Report under Condition No. 9.00)

Compliance Status
(Put √ in the
Condition appropriate column)
Title Remarks (if any)
No.
Not
Complied
Complied
1 Board of Directors.-
1(1) Size of the Board of Directors
The total number of members of a company's Board of √ The Board of Rupali Bank Limited
Directors (hereinafter referred to as "Board") shall not to is comprised of 8 Directors
be less than 5 (five) and more than 20 (twenty). including Managing Director &
CEO
1(2) Independent Directors
1(2)(a) At least one fifth (1/5) of the total number of directors Two (02) Independent Directors
in the company’s board shall be independent directors; are required as per BSEC
any fraction shall be considered to the next integer or guideline.One (01) Independent
whole number for calculating number of independent Director is available. Appoinment
director(s); for Replacement of retired one
Independent Director under
process.
1(2)(b) For the purpose of this clause "independent director''
means a director
1(2)(b)(i) Who either does not hold any share in the company √ Does not hold any share of the
or holds less than one percent (1%) shares of the total Company
paid-up shares of the company;
1(2)(b)(ii) Who is not a sponsor of the company and is not √
connected with the company's any sponsor or director
or nominated director or shareholder of the company
or any of its associates, sister concerns, subsidiaries
and parents or holding entities who holds one percent
(1%) or more shares of the total paid-up shares of
the company on the basis of family relationship and
his or her family members also shall not hold above
mentioned shares in the company:
1(2)(b)(iii) Who has not been an executive of the company in √ -
immediately preceding 2 (two) financial years;
1(2)(b)(iv) Who does not have any other relationship, whether √ -
pecuniary or otherwise, with the company or its
subsidiary or associated companies;
1(2)(b)(v) Who is not a member or TREC (Trading Right √ -
Entitlement Certificate) holder, director or officer of any
stock exchange;

Annual Report 2019 89

 Compliance Status
(Put √ in the
Condition appropriate column)
Title Remarks (if any)
No.
Not
Complied
Complied
1(2)(b)(vi) Who is not a shareholder, director excepting √ -
independent direct or officer of any member or TREC
holder of stock exchange or an intermediary of the
capital market;
1(2)(b)(vii) Who is not a partner or an executive or was not a √ -
partner or an executive during the preceding 3 (three)
years of the concerned company's statutory audit firm
or audit firm engaged in internal audit services or audit
firm conducting special audit or professional certifying
compliance of this Code;
1(2)(b)(viii) Who is not an independent director in more than 5 (five) √ -
listed companies;
1(2)(b)(ix) Who has not been convicted by a court of competent √ -
jurisdiction as a defaulter in payment of any loan or any
advance to a bank or a Non-Bank Financial Institution
(NBFI);
1(2)(b)(x) Who has not been convicted for a criminal offence √ -
involving moral turpitude;
1(2)(c) The independent director(s) shall be appointed by the √ -
board and approved by the shareholders in the Annual
General Meeting (AGM);
1(2)(d) The post of independent director(s) cannot remain √ -
vacant for more than 90 (ninety) days;
1(2)(e) The tenure of office of an independent director shall be √ -
for a period of 3 (three) years, which may be extended
for 1 (one) tenure only:
1(3) Qualification of Independent Director.-
1(3)(a) Independent director shall be a knowledgeable √ -
individual with integrity who is able to ensure
compliance with financial, regulatory and corporate
laws and can make meaningful contribution to
business.
1(3)(b)(i) Business Leader who is or was a promoter or director of - - N/A
an unlisted company having minimum paid-up capital
of Tk. 100.00 million or any listed company or a member
of any national or international chamber of commerce
or business association;
1(3)(b)(ii) Corporate Leader who is or was a top level executive not √ -
lower than Chief Executive officer or Managing Director
or Deputy Managing Director or Chief Financial Officer
or Head of Finance or Accounts or Company Secretary
or Head of Internal Audit and Compliance or Head of
Legal Service or a candidate with equivalent position of
an unlisted company having minimum paid up capital
of Tk. 100.00 million or of a listed company;
1(3)(b)(iii) Former official of government or statutory or √ -
autonomous or regulatory body in the position not
below 5th Grade of the national pay scale, who has at
least educational background of bachelor degree in
economics or commerce or business or law;
1(3)(b)(iv) University Teacher who has educational background in √ -
Economics or Commerce or Business Studies or Law;

90
 Rupali Bank Limited

Compliance Status
(Put √ in the
Condition appropriate column)
Title Remarks (if any)
No.
Not
Complied
Complied
1(3)(b)(v) Professional who is or was an advocate practicing - - N/A
at least in the High Court Division of Bangladesh
Supreme Court or a Chartered Accountant or Cost and
Management Accountant or Chartered Financial Analyst
or Chartered Certified Accountant or Certified Public
Accountant or Chartered Management Accountant or
Chartered Secretary or equivalent qualification;
1(3)(c) The independent director(s) shall have at least 10( ten) √ -
years of experiences in any field mentioned in clause
(b);
1(3)(d) In special cases, the above qualifications or experiences - - N/A
may be relaxed subject to prior approval of the
Commission.
1(4) Duality of Chairperson of the Board of Directors and
Managing Director or Chief Executive Officer.-
1(4)(a) The positions of the Chairperson of the Board and √ -
the Managing Director (MD) and/or Chief Executive
Officer (CEO) of the company shall be filled by different
individuals;
1(4)(b) The Managing Director (MD) and/or Chief Executive √ -
Officer (CEO) of a listed company shall not hold the
same position in another listed company;
1(4)(c) The Chairperson of the Board shall be elected from √ -
among the non-executive directors of the company;
1(4)(d) The Board shall clearly define respective roles and √ -
responsibilities of the Chairperson and the Managing
Director and/or Chief Executive officer;
1(4)(e) In the absence of the Chairperson of the Board, the - - No such event arose
remaining members may elect one of themselves
from non-executive directors as chairperson for that
particular Board's meeting; the reason of absence of
the regular Chairperson shall be duly recorded in the
minutes.
1(5) The Directors' Report to the Shareholders
1(5)(i) An industry outlook and possible future developments √ -
in the industry;
1(5)(ii) The Segment-wise or product-wise performance; √ -
1(5)(iii) Risks and concerns including internal and external risk √ -
factors, threat to sustainability and negative impact on
environment, if any;
1(5)(iv) A discussion on Cost of Goods sold, Gross Profit Margin √ -
and Net Profit Margin, where applicable;
1(5)(v) A discussion on continuity of any extraordinary activities No such event arose
and their implications (gain or loss);
1(5)(vi) A detailed discussion on related party transactions √ -
along with a statement showing amount, nature of
related party, nature of transactions and basis of
transactions of all related party transactions;
1(5)(vii) A statement of utilization of proceeds raised through √ -
public issues, rights issues and/or through any others
instruments;
1(5)(viii) An explanation if the financial results deteriorate after No such event arose
the company goes for Initial Public Offering (IPO),
Repeat Public Offering (RPO), Rights Share Offer, Direct
Listing etc;

Annual Report 2019 91

 Compliance Status
(Put √ in the
Condition appropriate column)
Title Remarks (if any)
No.
Not
Complied
Complied
1(5)(ix) An explanation on any significant variance that occurs √ -
between Quarterly Financial Performance and Annual
Financial Statements;
1(5)(x) A statement of remuneration paid to the directors √ -
including independent directors;
1(5)(xi) A statement that the financial statements prepared by √ -
the management of the issuer company present fairly
its state of affairs, the result of its operations, cash flows
and changes in equity;
1(5)(xii) A statement that proper books of account of the issuer √ -
company have been maintained;
1(5)(xiii) A statement that appropriate accounting policies have √ -
been consistently applied in preparation of the financial
statements and that the accounting estimates are based
on reasonable and prudent judgment;
1(5)(xiv) A statement that International Accounting Standards √ -
(IAS) or International Financial Reporting Standards
(IFRS), as applicable in Bangladesh, have been followed
in preparation of the financial statements and any
departure there from has been adequately disclosed;
1(5)(xv) A statement that the system of internal control is sound √ -
in design and has been effectively implemented and
monitored;
1(5)(xvi) A statement that minority shareholders have been √ -
protected from abusive actions by, or in the interest
of, controlling shareholders acting either directly or
indirectly and have effective means of redress;
1(5)(xvii) A statement that there is no Significant doubt upon the √ -
issuer company's ability to continue as going concern,
if the issuer company is not considered to be a going
concern, the fact along with reasons there of shall be
disclosed;
1(5)(xviii) An explanation that significant deviations from the last √ -
year's operating results of the issuer company shall be
highlighted and the reasons thereof shall be explained;
1(5)(xix) A statement where key operating and financial data of √ -
at least preceding 5 (five) years shall be summarized;
1(5)(xx) An explanation on the reasons if the issuer company has - - The Company has declared 5%
not declared dividend (cash or stock) for the year; stock dividend.
1(5)(xxi) Board's statement to the effect that no bonus share or N/A
stock dividend has been or shall be declared as interim
dividend;
1(5)(xxii) The total number of Board meetings held during the √ -
year and attendance by each director;
1(5)(xxiii) A report on the pattern of shareholding disclosing the
aggregate number of shares (along with name-wise
details where stated below) held by:-
1(5)(xxiii)(a) Parent or Subsidiary or Associated Companies and √ -
other related parties (name-wise details);
1(5)(xxiii)(b) Directors, Chief Executive Officer, Company Secretary, √ -
Chief Financial Officer, Head of Internal Audit and
Compliance their spouses and minor children (name-
wise details);
1(5)(xxiii)(c) Executives; √ -

92
 Rupali Bank Limited

Compliance Status
(Put √ in the
Condition appropriate column)
Title Remarks (if any)
No.
Not
Complied
Complied
1(5)(xxiii)(d) Shareholders holding ten percent (10%) or more voting √ -
interest in the company (name-wise details).
1(5)(xxiv) In case of the appointment or reappointment of a
director, a disclosure on the following information to
the shareholders:-
1(5)(xxiv)(a) a brief resume of the director √ -
1(5)(xxiv) nature of his/her expertise in specific functional areas; √ -
(b)
1(5)(xxiv) (c) Names of companies in which the person also holds the √ -
directorship and the membership of committees of the
board.
1(5)(xxv) A management's Discussion and Analysis signed by CEO
or MD presenting detailed analysis of the company's
position and operations along with a brief discussion of
changes in financial statements, among others, focusing
on:
1(5)(xxv)(a) Accounting policies and estimation for preparation of √ -
financial statements;
1(5)(xxv)(b) Changes in accounting policies and estimation, if any, - - N/A
clearly describing the effect on financial performance
or results and financial position as well as cash flows in
absolute figure for such changes;
1(5)(xxv)(c) Comparative analysis (including effects of inflation) of √ -
financial performance or results and financial position
as well as cash flows for current financial year with
immediate preceding five years explaining reasons
thereof;
1(5)(xxv)(d) compare such financial performance or results and √ -
financial position as well as cash flows with the peer
industry scenario;
1(5)(xxv)(e) briefly explain the financial and economic scenario of √ -
the country and the globe;
1(5)(xxv)(f) risks and concerns issues related to the financial √ -
statements, explaining such risk and concerns
mitigation plan of the company; and
1(5)(xxv)(g) future plan or projection or forecast for company's √ -
operation, performance and financial position, with
justification thereof, i.e., actual position shall be
explained to the shareholders in the next AGM;
1(5)(xxvi) Declaration or certification by the CEO and the CFO to √ -
the Board as required under condition No. 3(3) shall be
disclosed as per Annexure-A; and
1(5)(xxvii) The report as well as certificate regarding compliance of √ -
conditions of this code as required under condition No.
9 shall be disclosed as per Annexure-B and Annexure-C.
1(6) Meetings of the Board of Directors
The company shall conduct its Board meetings and √ -
record the minutes of the meetings as well as keep
required books and records in line with the provisions
of the relevant Bangladesh Secretarial Standards (BSS)
as adopted by the Institute of Chartered Secretaries of
Bangladesh (ICSB) in so far as those standards are not
inconsistent with any condition of this Code.
1(7) Code of Conduct for the Chairperson, other Board
members and Chief Executive Officer

Annual Report 2019 93

 Compliance Status
(Put √ in the
Condition appropriate column)
Title Remarks (if any)
No.
Not
Complied
Complied
1(7)(a) The Board shall lay down a code of conduct, based N/A
on the recommendation of the Nomination and
Remuneration Committee (NRC), for the Chairperson of
the Board, other board members and Chief Executive
Officer of the company;
1(7)(b) The code of conduct as determined by the NRC shall be N/A
posted on the website of the company
2 Governance of Board of Directors of Subsidiary Company:-
2(a) Provisions relating to the composition of the Board of √ -
the holding company shall be made applicable to the
composition of the Board of the subsidiary company;
2(b) At least 1 (one) independent director of the Board of the √ -
holding company shall be a director on the Board of the
subsidiary company;
2(c) The minutes of the Board meeting of the subsidiary √ -
company shall be placed for review at the following
Board meeting of the holding company.
2(d) The minutes of the respective Board meeting of the √ -
holding company shall state that they have reviewed
the affairs of the subsidiary company also;
2(e) The Audit Committee of the holding company shall √ -
also review the financial statements, in particular the
investments made by the subsidiary company.
3. Managing Director (MD) or Chief Executive Officer (CEO), Chief Financial Officer (CFO) Head of
Internal Audit and Compliance (HIAC) and Company Secretary(CS):-
3(1)(a) The Board shall appoint a Managing Director (MD) or √ -
Chief Executive Officer (CEO), a Company Secretary (CS),
a Chief Financial Officer (CFO) and a Head of Internal
Audit and Compliance (HIAC);
3(1)(b) The positions of the Managing Director (MD) or Chief √ -
Executive Officer (CEO), Company Secretary (CS), Chief
Financial Officer (CFO) and a Head of Internal Audit
and Compliance (HIAC) shall be filled by different
individuals;
3(1)(c) The MD or CEO, CS, CFO and HIAC of a listed company √ -
shall not hold any executive position in any other
company at the same time;
3(1)(d) The Board shall clearly define respective roles, √ -
responsibilities and duties of the CFO, the HIAC and the
CS;
3(1)(e) The MD or CEO, CS, CFO and HIAC shall not be removed √ -
from their position without approval of the Board as
well as immediate dissemination to the Commission
and stock exchange(s).
3(2) Requirement to attend Board of Director's Meetings
The MD or CEO, CS, CFO and HIAC of the company shall √ -
attend the meetings of the Board:
3(3) Duties of Managing Director (MD) or Chief Executive
Officer (CEO) and Chief Financial Officer(CFO)
3(3)(a) The MD or CEO and CFO shall certify to the Board that
they have reviewed financial statements for the year
and that to the best of their knowledge and belief:

94
 Rupali Bank Limited

Compliance Status
(Put √ in the
Condition appropriate column)
Title Remarks (if any)
No.
Not
Complied
Complied
3(3)(a)(i) These statements do not contain any materially √ -
untrue statement or omit any material fact or contain
statements that might be misleading;
3(3)(a)(ii) These statements together present a true and fair view √ -
of the company’s affairs and are in compliance with
existing accounting standards and applicable laws;
3(3)(b) The MD or CEO and CFO shall also certify that there are, √ -
to the best of knowledge and belief, no transactions
entered into by the company during the year which are
fraudulent illegal or violation of the code of conduct for
the company's Board or its member;
3(3)(c) The certification of the MD or CEO and CFO shall be √ -
disclosed in the Annual Report.
4. Board of Director's Committee.- For ensuring good governance in the company, the Board shall have
at least following sub-committees:
4(i) Audit Committee; √ -
4(ii) Nomination and Remuneration Committee N/A
5. Audit Committee.-
5(1) Responsibility to the Board of Directors
5(1)(a) The company shall have an Audit Committee as a sub- √ -
committee of the Board;
5(1)(b) The Audit Committee shall assist the Board of Directors √ -
in ensuring that the financial statements reflect true and
fair view of the state of affairs of the company and in
ensuring a good monitoring system within the business;
5(1)(c) The Audit Committee shall be responsible to the Board; √ -
the duties of the Audit Committee shall be clearly set
forth in writing.
5(2)(a) The Audit Committee shall be composed of at least 3 √ -
(three) members;
5(2)(b) The Board shall appoint members of the audit √ -
committee who shall be non-executive directors of the
company excepting Chairperson of the Board and shall
include at least 1(one) independent director;
5(2)(c) All members of the audit committee should be √ -
"financially literate" and at least I (one) member shall
have accounting or related financial management
background and 10(ten)years of such experience;
5(2)(d) When the term of service of any Committee members √ -
expires or there is any circumstance causing any
Committee member to be unable to hold office before
expiration of the term of service, thus making the
number of the Committee members to be lower than
the prescribed number of 3 (three) persons, the Board
shall appoint the new Committee member to fill up the
vacancy immediately or not later than 1 (one) month
from the date of vacancy in the Committee to ensure
continuity of the performance of work of the Audit
Committee;
5(2)(e) The company secretary shall act as the secretary of the √ -
Committee.
5(2)(f) The quorum of the Audit Committee meeting shall not √ -
constitute without at least 1 (one) independent director.

Annual Report 2019 95

 Compliance Status
(Put √ in the
Condition appropriate column)
Title Remarks (if any)
No.
Not
Complied
Complied
5(3)(a) The Board of Directors shall select 1 (one) member of √ -
the Audit Committee to be Chairperson of the Audit
Committee, who shall be an Independent director;
5(3)(b) In the absence of the Chairperson of the audit √ -
committee, the remaining members may elect one of
themselves as Chairperson for that particular meeting,
in that case there shall be no problem of constituting a
quorum as required under condition No.5(4)(b) and the
reason of absence of the regular chairperson shall be
duly recorded in the minutes.
5(3)(c) Chairperson of the Audit Committee shall remain √ -
present in the Annual General Meeting (AGM):
5(4)(a) The Audit Committee shall conduct at least its four √ -
meetings in a financial year: Provided that any
emergency meeting in addition to regular meeting may
be convened at the request of any one of the members
of the Committee;
5(4)(b) The quorum of the meeting of the Audit Committee √ -
shall be constituted in presence of either two members
or two third of the members of the Audit Committee,
whichever is higher, where presence of an independent
director is a must.
5(5) The Audit Committee shall:-
5(5)(a) Oversee the financial reporting process; √ -
5(5)(b) Monitor choice of accounting policies and principles; √ -
5(5)(c) Monitor Internal Audit and Compliance process to √ -
ensure that it is adequately resourced, including
approval of the Internal Audit and Compliance plan and
review of the Internal Audit and Compliance Report;
5(5)(d) Oversee hiring and performance of external auditors. √ -
5(5)(e) Hold meeting with the external or statutory auditors √ -
for review of the annual financial statements before
submission to the Board for approval or adoption;
5(5)(f) Review along with the management, the annual √ -
financial statements before submission to the board for
approval;
5.5(g) Review along with the management, the quarterly and √ -
half yearly financial statements before submission to
the board for approval;
5.5(h) Review the adequacy of internal audit function; √ -
5(5)(i) Review the Management's Discussion and Analysis √ -
before disclosing in the Annual Report;
5(5)(j) Review statement of all related party transactions √ -
submitted by the management;
5(5)(k) Review Management Letters or Letter of Internal √ -
Control weakness issued by statutory auditors.
5(5)(l) Oversee the determination of audit fees based on √ -
scope and magnitude, level of expertise deployed
and time required for effective audit and evaluate the
performance of external auditors;

96
 Rupali Bank Limited

Compliance Status
(Put √ in the
Condition appropriate column)
Title Remarks (if any)
No.
Not
Complied
Complied
5(5)(m) Oversee whether the proceeds raised through Initial - - N/A
public Offering (IPO) or Repeat public Offering(RPO) or
Rights Share offer have been utilized as per the purpose
stated in relevant offer document or prospectus
approved by the Commission:
5(6) Reporting of the Audit Committee
5(6)(a) Reporting to the Board of Directors
5(6)(a)(i) The Audit Committee shall report on its activities to the √ -
Board.
5(6)(a)(ii) The Audit Committee shall immediately report to the
Board of Directors on the following findings, if any:-
5(6)(a)(ii)(a) report on conflicts of interests; - - No such Incidence arose
5(6)(a)(ii)(b) suspected or presumed fraud or irregularity or material - - No such Incidence arose
defect identified in the internal audit and compliance
process or in the financial statements;
5(6)(a)(ii)(c) suspected infringement of laws,regulatory compliances - - No such Incidence arose
including securities related laws, rules and regulations;
5(6)(a)(ii)(d) any other matter which the Audit Committee deems - - No such Incidence arose
necessary shall be disclosed to the Board immediately;
5(6)(b) Reporting to the Authorities:-
If the Audit Committee has reported to the Board - - No such reportable incidence
about anything which has material impact on the arose
financial condition and results of operation and has
discussed with the Board and the management that any
rectification is necessary and if the Audit Committee
finds that such rectification has been unreasonably
ignored, the Audit Committee shall report such finding
to the Commission, upon reporting of such matters to
the Board for three times or completion of a period
of 6 (six) months from the date of first reporting to the
Board, whichever is earlier.
5(7) Reporting to the Shareholders and General Investors
Report on activities carried out by the Audit Committee, √ -
including any report made to the Board under condition
5(6)(a)(ii) above during the year, shall be signed by the
Chairperson of the Audit Committee and disclosed in
the annual report of the issuer company.
6. Nomination and remuneration Rupali Bank Limited is a state owned orginazation. As per
Committee(NRC).- views of management of Rupali Bank Ltd; NRC will not
be applicable for state owned orginazation. Nomination
and remunaration related all activities happen as per
government rules & regulations.
6(1) Responsibility to the Board of Directors
6(1)(a) The company shall have a Nomination and
Remuneration Committee (NRC) as a sub-committee of
the Board;
6(1)(b) The NRC shall assist the Board in formulation of
the nomination criteria or policy for determining
qualifications, positive attributes, experiences and
independence of directors and top level executive
as well as a policy for formal process of considering
remuneration of directors, top level executive;
6(1)(c) The Terms of Reference (ToR) of the NRC shall be clearly
set forth in writing covering the areas stated at the
condition No. 6(5)(b).

Annual Report 2019 97

 Compliance Status
(Put √ in the
Condition appropriate column)
Title Remarks (if any)
No.
Not
Complied
Complied
6(2) Constitution of the NRC
6(2)(a) The Committee shall comprise of at least three
members including an independent director;
6(2)(b) All member of the Committee shall be non-executive
directors;
6(2)(c) Members of the Committee shall be nominated and
appointed by the Board;
6(2)(d) The Board shall have authority to remove and appoint
any member of the Committee;
6(2)(e) In case of death, resignation, disqualification, or
removal of any member of the Committee or in any
other cases of vacancies, the board shall fill the vacancy
within 180 (one hundred eighty) days of occurring such
vacancy in the Committee;
6(2)(f) The Chairperson of the Committee may appoint or co-
opt any external expert and/or member(s) of staff to the
Committee as advisor who shall be non-voting member,
if the Chairperson feels that advice or suggestion form
such external expert and/or member(s) of staff shall be
required or valuable for the Committee;
6(2)(g) The company secretary shall act as the secretary of the
Committee;
6(2)(h) The quorum of the NRC meeting shall not constitute
without attendance of at least an independent director;
6(2)(i) No member of the NRC shall receive, either directly
or indirectly, any remuneration for any advisory or
consultancy role or otherwise, other than Director's fees
or honorarium from the company.
6(3) Chairperson of the NRC
6(3)(a) The Board shall select 1(one) member of the NRC to
be Chairperson of the Committee, who shall be an
independent director;
6(3)(b) In the absence of the Chairperson of the NRC, the
remaining members may elect one of themselves as
Chairperson for that particular meeting, the reason
of absence of the regular Chairperson shall be duly
recorded in the minutes;
6(3)(c) The Chairperson of the NRC shall attend the annual
general meeting (AGM) to answer the queries of the
shareholders:
6(4) Meeting of the NRC
6(4)(a) The NRC shall conduct at least one meeting in a
financial year;
6(4)(b) The Chairperson of the NRC may convene any
emergency meeting upon request by any member of
the NRC;
6(4)(c) The quorum of the meeting of the NRC shall be
constituted in presence of either two members or two
third of the members of the Committee, whichever is
higher, where presence of an independent director is
must as required under condition No. 6(2)(h);
6(4)(d) The proceedings of each meeting of the NRC shall duly
be recorded in the minutes and such minutes shall be
confirmed in the next meeting of the NRC.

98
 Rupali Bank Limited

Compliance Status
(Put √ in the
Condition appropriate column)
Title Remarks (if any)
No.
Not
Complied
Complied
6(5) Role of the NRC
6(5)(a) NRC shall be independent and responsible or
accountable to the Board and to the shareholders;
6(5)(b) NRC shall oversee, among others, the following matters
and make report with recommendation to the Board:
6(5)(b)(i) Formulating the criteria for determining qualifications,
positive attributes and independence of a director
and recommend a policy to the Board, relating to the
remuneration of the directors, top level executive,
considering the following:
6(5)(b)(i)(a) The level and composition of remuneration is
reasonable and sufficient to attract, retain and motivate
suitable directors to run the company successfully;
6(5)(b)(i)(b) The relationship of remuneration to performance is
clear and meets appropriate performance benchmarks;
and
6(5)(b)(i)(c) Remuneration to directors, top level executive
involves a balance between fixed and incentive pay
reflecting short and long-term performance objectives
appropriate to the working of the company and its
goals;
6(5)(b)(ii) Devising a policy on Board's diversity taking
into consideration age, gender, experience,
ethnicity,educational background and nationality;
6(5)(b)(iii) Identifying persons who are qualified to become
directors and who may be appointed in top level
executive position in accordance with the criteria laid
down, and recommend their appointment and removal
to the Board;
6(5)(b)(iv) Formulating the criteria for evaluation of performance
of independent directors and the Board;
6(5)(b)(v) Identifying the company's needs for employees at
different levels and determine their selection, transfer or
replacement and promotion criteria;
6(5)(b)(vi) Developing, recommending and reviewing annually the
company's human resources and training policies;
6(5)(c) The company shall disclose the nomination and
remuneration policy and the evaluation criteria and
activities of NRC during the year at a glance in its annual
report.
7. External or Statutory Auditors
7(1) The issuer shall not engage its external or statutory
auditors to perform the following services of the
company, namely :--
7(1) (i) Appraisal or valuation services or fairness opinions; √ -
7 (1) (ii) Financial information system design and √ -
implementation;
7 (1) (iii) Book-keeping or other services related to the √ -
accounting records or financial statement;
7 (1) (iv) Broker –dealer services; √ -
7 (1) (v) Actuarial services; √ -
7 (1) (vi) Internal audit services or special audit services; √ -
7 (1) (vii) Any services that the Audit Committee determines. √ -

Annual Report 2019 99

 Compliance Status
(Put √ in the
Condition appropriate column)
Title Remarks (if any)
No.
Not
Complied
Complied
7 (1) (viii) Audit or certification services on compliance of √ -
corporate governance as required under condition
No.9(1);
7 (1) (ix) Any other service that creates conflict of interest √ -
7(2) No Partner or employees of the external audit firms √ -
shall possess any share of the company they audit at
least during the tenure of their audit assignment of that
company; his or her family members also shall not hold
ant shares in the said company:
7(3) Representative of external or statutory auditors shall √ -
remain present in the Shareholders' Meeting (Annual
General meeting or Extraordinary General Meeting) to
answer the queries of the shareholders.
8. Maintaining a website by the Company.-
8(1) The Company shall have an official website linked with √ -
the website of the stock exchange.
8(2) The company shall keep the website functional from the √ -
date of listing.
8(3) The company shall make available the detailed √ -
disclosures on its website as required under the
regulations of the concerned stock exchange(s)
9. Reporting and Compliance of Corporate Governance.-
9(1) The company shall obtain a certificate from a practicing √ Required certification has been
Professional Accountant or Secretary (Chartered obtained from ''PODDER &
Accountant or Cost and Management Accountant or ASSOCIATES" Cost & Management
Chartered Secretary) other than its statutory auditors Accountants for the year ended
or audit firm on yearly basis regarding compliance of 31st December 2019
Corporate Governance Code of the Commission and
shall such certificate shall be disclosed in the Annual
Report.
9(2) The professional who will provide the certificate on √
compliance of this Corporate Governance Code shall be
appointed by the Shareholders in the annual general
meeting.
9(3) The directors of the company shall state, in accordance √ -
with the Annexure-C attached, in the directors' report
whether the company has complied with these
conditions or not.

100

DIRECTORS' RESPONSIBILITY FOR
INTERNAL CONTROLS AND FINANCIAL
REPORTING
The Board of Directors of RBL is responsible for the preparation
and true and fair presentation of the annual financial statements
of 2019 and other financial information and reports contained
in this annual report. The accompanying financial statements
have been prepared in accordance with Bangladesh
Accounting Standards, as adopted by the Institute of
Chartered Accountants of Bangladesh (ICAB), Companies
Act 1994, Banking Companies Act 1991 (Latest Amended
in 2013 & 2018), and Bangladesh Securities and Exchange
Rules 1987, as considered relevant and appropriate under
the circumstances. In cases where amounts are stated based on
estimates, those are based on informed and prudent judgment
and estimates made by the management and agreed upon
by the Board of Directors. The financial information and data
provided in this annual report are consistent with the financial
statements.
The Board is responsible for ensuring adequate internal control.
The Board is responsible for ensuring adequate internal
control on financial transactions and reporting. In order to
ensure effective risk management, the Board also ensures that
adequate internal control system is in place and it is consistently
complied with to provide reasonable assurance that financial
records are reliable for preparation of the financial statements,
that quality of financial reporting is maintained, that assets of the
bank are safeguarded against unauthorized use or disposition,
and that accountability for assets and business transactions
are maintained. The Board also monitors and updates internal
control procedure on a continuous basis.
The Audit Committee of the Board fully comprises of non-
executive members of the Board who are independent of the
executive management.
Internal control, accounting policies and financial reporting
are under the direct supervision of the Audit Committee of the
Board that, in turn, report to the Board of Directors for general
oversight and supervision.
Further, the Committee regularly reviews reports prepared
by Monitoring, Compliance, Audit & Inspection and Risk
Management Divisions, covering all business operations of the
Bank with a particular focus on core risks.
Rupali Bank Limited
Monitoring, Compliance, Audit & Inspection and Risk
Management Divisions of the Bank work under close
coordination with the Audit Committee of the Board for ensuring
better internal control, effective operational procedure and
reliable financial reporting. Internal control and compliance-
related divisions undertake detailed audit of the activities of the
branches and the head office on a regular basis. The reports are
presented directly to the Audit Committee of the Board.
Audit & Inspection Division has also direct access to the Audit
Committee of the Board to discuss any matter related to their
audit, adequacy of internal control procedures and compliance
of the Bank.
HUSSAIN FARHAD & CO. AND K M HASAN & CO., Chartered
Accountants, are external auditors of the Bank entrusted with
the responsibility of auditing the annual financial statements
of 2019. They kept an understanding of RBL’s internal control
system for preparation of the financial statements and financial
reporting, and undertook such audit tests and other auditing
procedures as may be considered appropriate under
the circumstances to express its independent opinion on the
financial statements that follow. They had full access to the
Audit Committee to discuss any matter related to its audit to
ensure reliability of financial reporting and effectiveness of
internal control procedures.
The Board understands that despite taking all care and
precautions, any internal control system may have limitations
in its effectiveness. However, the Board believes that effective
control was maintained over the preparation of the financial
statements for the year ended December 31, 2019.
With best regards,
On behalf of the Board of the Directors
Monzur Hossain, MP
Chairman
Annual Report 2019 101
AUDIT COMMITTEE

Mohammad Abdul Baset Khan

Chairman, Audit Committee

Arijit Chowdhury A. K. M. Delwer Hussain, FCMA

Member, Audit Committee Member, Audit Committee

102
 Rupali Bank Limited

REPORT OF THE
AUDIT COMMITTEE

Md e
.A tte
bd m mi
ul B t Co
aset e Au di
Khan th
n of
Independent Director, Chairma

IN COMPLIANCE WITH THE GUIDELINES OF BANK COMPANIES ACT, BANGLADESH

SECURITIES & EXCHANGE COMMISSION (BSEC) AND BANGLADESH BANK
DIRECTIVES, THE AUDIT COMMITTEE OF THE BOARD OF RUPALI BANK HAS
BEEN FUNCTIONING AS A SUB-COMMITTEE OF THE BOARD OF DIRECTORS. IT
HAS BEEN ASSISTING THE BOARD IN ENSURING THAT FINANCIAL STATEMENTS
REFLECT A TRUE AND FAIR VIEW OF THE STATE OF AFFAIRS OF THE BANK.
IT ALSO CARRIES OUT OVERSIGHT RESPONSIBILITIES FOR ENSURING THE
IMPLEMENTATION OF DIFFERENT POLICIES FORMULATED BY THE BOARD AND
THE REGULATORS.
Annual Report 2019 103
Composition of the Audit Committee (AC)
The Bank’s Audit Committee (as on 31 December 2019) comprised of the following members:
Sl. Reg
01. Mr. Md. Abdul Baset Khan
02. Mr. Arijit Chowdhury
03. Mr. A.K.M. Delwer Hussain, FCMA
Roles and Functions of AC
Broadly, the roles and functions of the Audit Committee, as
determined by BRPD Circular No. 11/2013 of Bangladesh Bank
are as follows:
Internal Control
Evaluate the competence of the management in relation
to fostering the right compliance culture and whether
clear guidelines have been set by the management for the
employees to carry out their duties and responsibilities
and also assess whether the management has adequate
control over the performance of employees of the Bank.
Lead the establishment of computerized banking and
ensure effective Management Information System (MIS) at
the Bank.
Assess whether the management complies with the
recommendations made by the internal and external auditors.
Report frauds/irregularities of material defects and
conduct regular detection of fraud, irregularities and lapses
of persons in charge to the Bank’s Board, while suggesting
corrective measures and also recommending for taking
appropriate action against the guilty. Monitor compliance
with recommendations marked with corrective measures,
as suggested by internal and external auditors.
Financial Reporting
Review data and information of the Bank for it to be fairly
reflected in the financial statements, as per the existing
laws and standards formulated by Bangladesh Bank.
Ensure exchange of views between external/ auditors/
authority and the management before finalizing the
financial statements.
Internal Audit
Approve and review the annual audit plan based on the
assessment of risks.
Evaluate whether internal audit activities of the Bank are
performed independent of the management.
Meetings of the Audit Committee during the year 2019
Sl. no. Name of Directors Position
01. Mr. Md. Abdul Baset Khan Independent Director & Chairman
02. Mr. Arijit Chowdhury Director & Member
03. Mr. A.K.M. Delwer Hussain, FCMA Director & Member
104
Employee Name (GM)
Independent Director Chairman
Director Member
Director Member
Discuss the different activities and organizational structure
of the internal audit and ensure that no bottlenecks act as
hindrance towards audit activities.
Evaluate the efficiency and effectiveness of the internal
audit.
Review the findings and recommendations made by
internal auditors and provide guidance.
External Audit
Evaluate the audit report and audited statements of
external auditors.
Evaluate defects for corrective measures, as suggested
by external auditors for eliminating irregularities, and
assessing whether the management/authority considered
the suggestions thereof.
Put forward recommendation for appointment of external
auditors and their remuneration.
Complying with existing laws and regulations
Review whether rules and regulations formulated by the
regulatory authorities, including Bangladesh Bank and
the Board of the Bank are practiced and complied by the
Bank’s management.
Miscellaneous
Report to the Board the measures adopted to regularize
frauds or other irregularities in the internal control system,
as identified by internal auditors, external auditors and
Bangladesh Bank, on a quarterly basis.
Produce evaluation reports prepared by internal and
external authorities on related matters.
Meetings held Meetings attended
12 12
12 12
12 12

Main activities and deliberations conducted during
the year 2019
Reviewed and approved the Annual Audit Plan 2019.
Reviewed the recommendations of the tripartite meeting
held between the Finance Ministry, Commercial Audit and
the Bank.
Reviewed the compliance report on Head Office Inspection
by Bangladesh Bank for the year 2017.
Reviewed findings of ICT System Audit and suggested
commensurate recommendations.
Reviewed actions taken against employees involved in
serious lapses during audit findings of 2018.
Reviewed and approved annual financial statements of the
Bank for the year ended 2018, as certified by the external
auditor for submission to the Board.
Reviewed Corporate Governance Code composed by
Bangladesh Securities and Exchange Commission for
adoption in the Bank.
Reviewed the modus operandi, obstacles and ways to
strengthen MIS Department and provided facilitative
guidance.
Reviewed ICT training module.
Rupali Bank Limited
Reviewed management report on the Bank for the year
2018, submitted by the external auditor.
Reviewed un-audited quarterly (Q1, Q2, & Q3) financial
statements of the Bank before submission to the Board.
Reviewed annual health report of the Bank for the year
2018
Reviewed compliance status of the Bank through a
checklist of Self-Assessment of Anti-Fraud Internal Controls
for the half year ended 2019.
Acknowledgements
The Audit Committee expresses its sincere thanks to respected
members of the Board, management and authorities, in
particular, Bangladesh Bank and Bangladesh Securities and
Exchange Commission for their excellent support and continued
cooperation.
For and on behalf of the Audit Committee of the Board of RBL
Mohammad Abdul Baset Khan
Chairman, Audit Committee
Annual Report 2019 105
DECLARATION BY MANAGING
DIRECTOR & CEO AND CFO
Date: 28 June, 2020
The Board of Directors
Rupali Bank Limited
Rupali Bhaban
34 Dilkusha Commercial Area, DHAKA-1000, Bangladesh.

Subject: Declaration on Financial Statements for the year ended on 31 December 2019.

Dear Sir(s),

Pursuant to the condition No. 1(5)(XXVI) imposed vide the Commission’s Notification No. BSEC/ CMRRCD/2006-158/207/
ADMIN/80 Dated 03 June, 2018 under section 2CC of the Securities and Exchange Ordinance, 1969, we do hereby declare that:

(1) The Financial Statements of Limited for the year ended on have been prepared in compliance with International Accounting
Standards (IAS) or International Financial Reporting Standards (IFRS), as applicable in the Bangladesh and any departure there
from has been adequately disclosed;
(2) The estimates and judgments related to the financial statements were made on a prudent and reasonable basis, in order for the
financial statements to reveal a true and fair view;
(3) The form and substance of transactions and the Company’s state of affairs have been reasonably and fairly presented in its financial
statements;
(4) To ensure above, the Company has taken proper and adequate care in installing a system of internal control and maintenance of
accounting records; (5) Our internal auditors have conducted periodic audits to provide reasonable assurance that the established
policies and procedures of the Company were consistently followed; and (6) The management’s use of the going concern basis
of accounting in preparing the financial statements is appropriate and there exists no material uncertainty related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern.
In this regard, we also certify that: —
(i) We have reviewed the financial statements for the year ended on 31 Dcecember, 2019 and that to the best of our knowledge
and belief:
(a) these statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;
(b) these statements collectively present true and fair view of the Company’s affairs and are in compliance with existing
accounting standards and applicable laws.
(ii) There are, to the best of knowledge and belief, no transactions entered into by the Company during the year which are
fraudulent, illegal or in violation of the code of conduct for the company’s Board of Directors or its members.

Sincerely yours.

(Md. Shawkat Jahan Khan, FCMA) (Md. Obayed Ullah Al Masud)

Chief Financial Officer (CFO) Managing Director & CEO

106
Annual Report 2019 107
STATEMENT
FROM CHIEF RISK
OFFICER

Kh r
on ice
dok k Off
er A fR is
ta ur Ra r & Chie
o
hman Direct
Deputy Managing

AT RUPALI BANK, OUR RISK MANAGEMENT FRAMEWORK IDENTIFIES AND

CONTROLS RISK IN A WAY THAT IS SUPPORTIVE OF OUR STRATEGIC PRIORITIES
OF DEPLOYING CAPITAL, WHILE PROTECTING OUR LONG-TERM FINANCIAL
SECURITY AND STAKEHOLDER VALUE CREATION PLANS."

Fostering a focused and risk-aware culture
At Rupali Bank, we maintain a medium to low risk profile,
focusing on sustenance of a comfortable level of capital
adequacy and liquidity, in accordance with our strategic
objectives, and aligned with the Group's operating model and
the risk tolerance levels, as defined by the Board of Directors.
As part of our risk management framework, we identify and
monitor top and emerging risks that impact our business
activities, financial results and reputation and strategic priorities.
We have also developed a risk watch list that enables us to keep
a lookout for any risks that have the potential to influence our
business. Overall, our emphasis on creating a risk-aware culture
is one that is rooted in enabling our organisation to protect itself
from downsides, while facilitating opportunity-capture during
any upsides. It encourages calculative risk-taking that helps us
progress in our value creation journey for our shareholders and
other stakeholders.
We have always believed that effective risk management
is essential to perform consistently and sustainably for
our stakeholders and hence Rupali Bank considers risk
management as a core priority. Further, through our time-tested
risk management framework, we focus on managing enterprise-
wide risks with the objective of maximizing risk-adjusted returns,
while firmly remaining within our risk appetite. To ensure sound
health of the Bank, which is an intrinsic component of the
country’s financial sector, identifying, measuring, monitoring
and controlling various risk types comprise crucial factors.
At Rupali Bank, our risk-aware culture begins with the
identification process, where we review internal risk data, while
also engaging in thorough industry research. Thereafter, our
senior management assesses our key focus areas in the context
of the entire banking industry, and also our tactical and strategic
priorities and responses to mitigate and control these risks. This
is further supplemented by discussions with the Board and our
Management Risk Committee, where our top and emerging risks
are prioritized and monitored. Further, we also conduct periodic
updates on our action plans, and our risk assessment papers and
mitigation responses are disseminated down to our respective
teams in our various business divisions for implementation.
In addition to the conventional risks faced by the Bank
comprising of credit and market risks, various other operational
risks are also created due to reasons like:
Increasing use of automation that have the potential to
create cyber risks;
Growing importance of IT integration and shared services
across financial institutions and entities;
Reducing earnings volatility and achieving cost efficiencies
Enhancing customer needs for financial products and
services;
Increasing focus by regulators on legal, fraud and
compliance issues;
Knowledge gap and lack of adequate supervision.
At Rupali Bank, we are increasingly focusing on the development
of an appropriate risk management framework for managing
risks intrinsic to the Bank. Our well-staffed and professional
Risk Management Division has been established and entrusted
Rupali Bank Limited
with the responsibility of identifying, monitoring and reporting
various types of risks, while also developing a resilient, agile and
focused integrated risk management framework. Some of the
major activities of RMD include:
Preparing Monthly Risk Management Paper (MRMR);
Engaging in the development of Comprehensive Risk
Management Paper (CRMR);
Performing stress-testing and Risk Appetite Report;
Acting as a robust operational layer for Internal Capital
Adequacy Assessment.
Some of the key risks facing the Bank and our mitigation calls
have been summarized below:
Credit risk and portfolio management
The Bank, over the recent past, has increased its focus in
managing credit risk. Specifically, our Credit Administration
Process has helped mitigate risks arising from human/manual
errors in branch banking. Corrective measures are also
being taken as per the audit report. Further, periodical stock
verification and insurance coverage has been made mandatory
before sanctioning or renewing any credit proposals. In order
to shift the risk adjusted return on capital, borrower’s rating
is considered, which encourages borrowers to complete
their rating procedure as conducted by the External Credit
Assessment Institute (ECAI).
Operational Risk Management
Operational Risk Management (ORM) is a continuous cyclical
process that includes such features as risk assessment, risk
decision-making and implementation of risk controls, which
eventually results in acceptance, mitigation or avoidance of
risk. Essentially, ORM is the oversight function of operational
risks, including the risk of loss arising from inadequate or
failed internal processes and systems, human factors, or other
extraneous events.
Moreover, divisional functions of the Bank are required to ensure
appropriate operational risk management by implementing
clear segregation of duties, systems automation and data
accuracy, while also maintaining proper supervision. Further,
on- and off-site monitoring and senior management overviews
are also organised on a regular basis. Overall, the Bank is driving
a conscious culture of implementing bank-wide operational risk
management involving all its employees. This is an essential
feature of fostering a risk-aware culture.
Compliance and regulatory risk
At Rupali Bank, improvements have been achieved in our
processes and controls in dealing with financial crime risks
and in fair dealing. The front-office has strengthened its ability
to identify and act on these risk groups. Further, process and
system improvements have also been made in areas concerning
customer due diligence and transaction surveillance to
materially improve prioritization of risk areas, and clear any
accumulated operational congestion. We expect results from
a number of initiatives relating to our surveillance systems
and Know Your Client (KYC) processes. Such initiatives include
process automation, customer analytics and national-level KYC
utilities.
Annual Report 2019 109
Cyber security risk
As cyber-attacks against public and private infrastructure grows
worldwide, cyber security has become increasingly important
for both governments and regulators across the globe. At Rupali
Bank, we have implemented multi-layered defenses, while also
combining employee education and awareness with industry
collaborations.
Market risks
Market risks are actively monitored by the Treasury Division of
the Bank. As per stress-testing, the Bank is unlikely to face any
major risks in liquidity, interest rates and foreign exchange.
Besides, interest rate risk is also being monitored through the
use of re-pricing gap analysis and duration analysis.
Environmental & Social (E&S) risk management
Rupali Bank recognizes that its financing decisions have the
potential impact on human health and the environment. The
Environmental and Social (E&S) Risk Management Policy
Statement represents the Bank’s commitment towards being
E&S compliant in its activities and financing.
Summary of the Executive Risk Management
Committee
Rupali Bank held 12 Executive Risk Management Committee
(ERMC) meetings in 2019. In these meetings, various risks
arising from internal and external sources and their mitigation
techniques were discussed. Implementation and progress on
decisions taken in the preceding meetings were also discussed
in subsequent meetings. Core risk issues were also discussed
on a comprehensive basis, along with the following material
matters:
Rescheduling of loans;
Ways of collecting overdue and defaulted loans;
Increasing collection from top-20 borrowers;
Enhancing account opening and deposit mobilization;
Review of credit risk concentrations;
Foreign remittance and risk matters;
Customer service.
110
Risk culture
At Rupali Bank, we seek to promote a robust risk culture
throughout our organization. Our aim is to help reinforce
resilience by encouraging a holistic approach to the management
of risk and returns by engaging in effective management of our
risk, capital and reputational profiles. We actively take risks
in connection with our business and, as such, the following
principles underpin our risk culture:
Risk is taken within our well-defined risk appetite
framework;
Every risk taken needs to be approved as part of our risk
management framework;
Risk should be continuously monitored/managed/
controlled/mitigated.
We have continued to develop our training structure to raise
risk awareness. In the future, we expect to launch a revised risk
awareness course for all employees, which will include new and
updated sections on residual risk, concentration risk, liquidity
risk, reputation risk, strategic risk, settlement risk and risk
appetite, among others.
In keeping with the expansion plans of our business, the
Bank’s Risk Management Division is striving to strengthen risk
management to help minimize risk. Specifically, the emergence
of circumstances with the potential to cause damage to
corporate management are classified as risks (situations in
which risks have not yet been realized) and crises (emergency
situations in which risks have already been realized, for instance
the Covid-19 economic risks). For the former, efforts focus
on thwarting risks before they have the chance to manifest
themselves. For the latter, we strive to make an initial response
for restoring business operations in a prompt and appropriate
manner.
Thank you all for continued support.
Khondoker Ataur Rahman
Deputy Managing Director &
Chief Risk Officer
 Rupali Bank Limited

REFLECTIONS
FROM CFO

Md er
. Sh Off ic
awk nci al
at Jahan Khan, FCMA Chief F
in a

AT RUPALI BANK, WE SERVE THE INTERESTS OF THE NATION BY DRIVING

COMMERCE AND PROSPERITY THROUGH OUR UNIQUE HERITAGE AS ONE OF
THE OLDEST STATE-OWNED COMMERCIAL BANK OF BANGLADESH WITH AN
OUTLOOK ANCHORED ON MODERNITY. AS WE MOVE INTO 2020 AND BEYOND,
I AM CERTAIN THAT OUR RESILIENT BALANCE SHEET WILL SUPPORT OUR
GROWTH ASPIRATIONS AND VALUE CREATION EXPECTATIONS."

Annual Report 2019 111

FINANCIAL KPIs, 2019
BDT 306,724.04 mn BDT 414,624.25 mn
Loans and advances Customer deposits
5.63% 93.56%
Common Equity Tier-I ratio Cost-to-income
GLOBAL ECONOMIC REVIEW
Global economic growth stood at 3.0% in 2019, as against 3.6%
in the previous year. This deceleration is owed to a number
of factors, including rising trade tensions between China and
the US, two of the world’s largest economies that disrupted
supply chains and created extreme uncertainty; general slack
in both developed as well as emerging market economies, and
uncertainty around the terms of Brexit that further dampened
trade and investment.
The global economy is expected to witness significant volatility,
uncertainty, complexity and ambiguity in 2020 and beyond,
especially on account of Covid-19, a public health pandemic
that morphed into an economic pandemic as countries clamped
nation-wide lockdowns in order to curb the spread of the
virulence. Many global economies are already perceived to have
slipped into a recession, while many other are demonstrating
recessionary trends.
Though many economies are slowly opening up, weak consumer
sentiment, highly challenged job markets and rising caseloads
in clusters have exacerbated uncertainty amongst trade and
business. The speed and scale of normalization will be rooted in
the way central banks respond with respect to policy, financial
stimulus and relief packages. Notably, Asia is expected to remain
the fastest growing region in the world and will continue to drive
global growth.
THE ECONOMY OF BANGLADESH
Despite the slowing global growth, Bangladesh’s economy
remained relatively resilient, with the country reporting 8.15%
GDP growth in FY2018-19. This economic expansion is attributed
to large domestic consumption space and the country’s global
trade being unaffected so far.
Yet, Bangladesh is also expected to witness deceleration on
account of the negative impact on the RMG, textiles and other
export-oriented trade, and on remittances that will weaken as
recessionary trends take hold. However, Bangladesh possesses
several structural competencies that will poise the nation’s
growth well in the medium to long-term. These include proactive
Government policies supported by relief packages that amount
to as much as 2.5% of the national GDP, or Tk. 72,750 crore, and
a relatively resilient and well-diversified economic composition.
112
10.34%
Capital adequacy
BDT 1.32
Earnings per share
Plus some of the other core advantages continue to remain
true, including Governmental policies that promote trade
and investment, a large and low-cost labour pool and a huge
national consumer market.
Bangladesh’s financial services sector continued to remain
challenged on account of slowing deposits, liquidity constraints
and rising pool of bad loans. However, institutions with sound
corporate governance practices continued to perform well
despite the external adversity. One of the major sources of
optimism in 2020 is the fact that the Government stimulus will
be transmitted via banking channels, thus ensuring systemic
liquidity and enhanced levels of engagement between banks
and customers, thus opening up further savings/trade/invest
opportunities.
RUPALI BANK’S 2019 PERFORMANCE
At Rupali Bank, in one of the major achievements of the year,
we were able to improve our portfolio quality by bringing down
our loan classification to 16.15% in 2019. This represents decent
progress, especially considering an increasingly challenging
external environment, including:
Fixed industrial lending and deposit rates at 9% and 6%,
respectively, as per the guidelines of our regulators, coming
into effect from 1 July 2018 for state-owned banks
Interest rates continuing to fall, putting pressure on our net
interest income despite ongoing efforts to improve our cost
of funding
High default cases in the overall banking industry that
pushed non-performing loans higher
And more recently, the outbreak of the novel coronavirus
(Covid-19) that comes with unpredictable human and
economic consequences
The year 2019 was one where we witnessed the first full
year scenario of recalibration of both industrial lending and
deposit rates. With our average lending rates adjusted down
by about 400 basis points, we lost almost Tk. 420 cr of interest.
However, we were able to offset some of this impact through
the realignment of our deposit rates that declined by about
135 basis points. Considering the first full year impact of the
fixed rates, we performed admirably during the year, with net
interest income of Tk. 1.88 cr and net profit of Tk. 54.64 cr. This

performance enabled us to continue to remain on the path of
sustainable value creation as we declared a dividend of 5%
stock for the year.
During the year, we remained true to our public mandate
of being a peoples’ bank, launching a number of innovative
customer-centric loan products. One such notable product
comprised of the scheme of ‘zero coupon lending’ to tomato
farmers, which was started from 1st January 2020. The Bank
disbursed Tk. 50,000 to five hundred farmers of Natore under
a pilot project. Such loans with zero interest rate will be highly
beneficial to our farm communities and, over time, we expect
to scale up this platform to include farmers growing ginger,
turmeric, onions and mangoes.
On the customer side too we were able to commence banking
relationships with a number of large RMG customers, taking
forward our specialist understanding of this sector. However,
we are aware of the concentration of our book on industry and
top-20 borrowers, and are actively focusing on diversification,
especially through our enhanced emphasis on the agri and
SME sectors. Further, we have also reinforced our surveillance
mechanisms post loan disbursement with a view to protect
asset quality and reduce default risks.
To further reinforce our portfolio quality, we have fast-tracked
our focus on recovery from written-off loans, with our senior
leadership placing high and direct importance on this by
being closely engaged in this activity. We are also planning
to constitute specialised and dedicated zonal, divisional and
corporate branch teams for accelerated recovery. On the other
hand, we are also emphasising on diversifying the geographic
nature of our loan book by focusing on augmenting our lending
activities to non-Dhaka regions, as also by developing new and
feature-rich products and solutions that are customised to
the needs and demands of customers in specific geographic
pockets, while being selective on loan disbursement to Dhaka-
based borrowers.
One of the major improvements that we were able to record
during the year was arresting the decline in our NPLs, from
19.21% in December 2018 to 16.15% during December 2019.
However, we are anything but complacent. Rather we are
enthused at the progress and are making all-out efforts with
a view to focusing on recovery and keeping classified loans at
satisfactory levels.
OUR EMPHASIS ON COMPLIANCE
At Rupali Bank, we actively engage with the Government,
regulators and policymakers to share insights and to support the
development of best practices in the financial services sector.
We are committed to complying with legislations, rules
and other regulatory guidelines applicable to our business
and operations. Our compliance with legal and regulatory
frameworks ensures that the Bank is able to meet its obligations
Rupali Bank Limited
and supports the resilience and effective functioning of the
broader financial system and the economy. Further, we meet
all relevant transparency requirements and engage through
ongoing dialogue with the Government and regulators,
submitting responses to consultations and by participating
in industry working groups. We will continue to embrace the
highest standards of governance and ensure that our approach
to regulation remains as an embedded part of our culture.
At Rupali Bank, we complied with all the terms and conditions
of Guidelines for Corporate Governance code under section
2CC of the Bangladesh Securities and Exchange Ordinance,
1969. The Bank also conducts its APA with the Ministry of
Finance on a regular basis and the achievement rate stood at
82.29% in the year of 2019. The Bank also complied with the
different clauses of MOU, like ceiling on adjusted loan growth,
Government decision regarding interest rates, liquidity and
fund management and digitisation of payment infrastructure/
system, etc. Further, the Bank’s Risk Management Division
engaged in comprehensive reporting, including stress-testing,
RMP, CRMR, Risk Appetite and their compliance and dispatched
the same to Bangladesh Bank after getting prior approvals of the
Executive Risk Management Committee (ERMC) and the Board’s
Risk Management Committee (BRMC), as per Risk Management
Guideline.
According to Basel-III accord, RBL maintained CRAR of 10.34%
(as on 31st December, 2019), which is higher than the required
rate of 10%. The Bank also maintained well its leverage ratio at
2.76, LCR at 154.52 and NSFR at 94.92 at the end of year.
OUTLOOK AND THE WAY FORWARD
At Rupali Bank, we will continue to invest in areas of our
competitive strength in 2020 and will not compromise on the
quality of the loans we book, while in fact bolstering our credit
practices. If the external environment forces our top-line to grow
more slowly then so will our cost base, and if there are fewer
opportunities to effectively deploy surplus capital to fuel high-
yield growth then we will have more to return to shareholders.
We have achieved improvement in our portfolio quality in
2019 and we are focused on doing so again this year, while
also maintaining positive income-to-cost jaws and engaging in
disciplined and cautious capital allocation.
As we continue to transform Rupali Bank this year too, we will
welcome challenges, adapt swiftly and be uncompromising in
our pursuit of expected performance. We are in the right market,
guided by the right approach and strategy and we are united
through our purpose to drive commerce and prosperity.
Thank you,
Md. Shawkat Jahan Khan, FCMA
Chief Financial Officer
Annual Report 2019 113
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114
Rupali Bank Limited

Annual Report 2019 115

 BUSINESS REVIEW
AND ANALYSIS
MANAGEMENT REVIEW AND ANALYSIS
Bangladesh Economy
Bangladesh’s economy continued to grow rapidly and achieved
record growth of 8.15 percent in FY19, which is amongst the
fastest growth rates in the world. However, the economy is
expected to face some pressures, especially in the FY20 and
FY21 fiscal years, as Covid-19 induced lockdowns will impact
the economic performance of the country. Further, the slump in
the global economy will also create an impact on the country’s
economy, as Bangladesh is integrated with global supply chains.
However, the nation’s GDP is fairly resilient and the Government’s
financial relief and stimulus packages to the extent of over 2% of
GDP will contribute significantly to economic restoration, going
ahead.
Emergence of Rupali Bank
Rupali Bank Limited (RBL) was incorporated as a public
limited company on 14 December 1986, under the
Companies Act, 1913, and took over the business of Rupali
Bank, which emerged as a nationalised commercial bank in
1972, pursuant to Bangladesh Bank Nationalization Order
1972 (P.O. No. 26 of 1972) as a going concern through a vendor
agreement signed between the Ministry of Finance, People’s
Republic of Bangladesh, on behalf of Rupali Bank and the Board
of Directors on behalf of Rupali Bank Limited, on 14 December
1986 with retrospective effect from 14 December 1986.
Principal Activities
The principal activities of Rupali Bank comprise of banking and
other financial services-related activities, such as accepting
deposits, personal banking, trade financing, CMSME, trade and
services, cash management, treasury, securities and custody
services, remittance services, modern (digital) banking services,
etc.
Business Operations and Development
The Bank’s deposit base stood at Tk 41,462.43 cr in 2019,
against Tk 38,954.95 cr in 2018, thereby registering a growth
of 6.44%.
116
Loans and advances of the Bank stood at Tk 30,672.40 cr in
2019 cr, vs. Tk 24,749.06 cr in 2018, registering a growth of
23.93%.
Classified loans and advances stood at Tk 4,614.57 cr, or
at 16.15% of total loans, whereas it was Tk 4,428.85 cr, or
19.21%, in 2018.
The Bank reconciled long outstanding entries within the
year ended 31 December 2019.
Rupali Bank achieved import business of BDT 15,401.83 cr
in 2019, whereas it was Tk 11,402.15 cr in 2018.
Total export business handled by the Bank was BDT
2,689.27 cr in 2019, as against BDT 2,600.20 cr in 2018.
Total foreign remittance business stood at Tk 2,256.92 cr in
2019, vs. Tk 1,717.32 cr in 2018.
The Bank automated its remittance system so that
beneficiaries can receive spot cash payments, achieved
with the help of web-based Remittance Management
Software (RMS).
The Bank provides 100% online banking facilities through
its 572 branches.
The Bank installed 12 own-branded ATM machines with
NPSB facility at different branches, and more 70 ATMs and 10
recycler machines will be installed over the next few months.
Through RTGS/BEFTN, RBL has established electronic fund
transfer facilities across all its branches.
RBL has established communication links for BACH
operations with its clearing region by setting 215 truncation
points (TPs) with a view to cover online clearing facility to
all branches of the Bank.
An amount of Tk 354.50 cr was distributed under rural
and micro-credit schemes, such as for shrimp cultivation,
micro-credit, micro-credit for handicrafts, fishery, dairy,
poultry, nursery for tree plantation, solar power and bio-
gas schemes, farmers’ loan scheme, micro-credit through
Bank-NGO linkages, agro-based industries, etc.
As part of sustainable banking, the Bank extended loan
facility of Tk 677 cr for green banking upto 2019.
 Rupali Bank Limited

Solar panels were installed in 6 branches as part of Deposit

expansion programme under green branches. 41,462.43
38,954.95
Five new branches were inaugurated in 2019 considering
the business potential in these micro-markets. 31,971.88
27,911.60
A large mural of Bangabandhu Sheikh Mujibur Rahman, the
25,382.96
father of the nation, and the bust of 7 Birsresthoya were set
up at the entrance of the head office in LED display.
The Bank reintroduced its logo of 1972, the new logo and
designs of all branch signboards will be changed gradually.
Outstanding Achievements
2015 2016 2017 2018 2019
5% stock dividend declared in 2019
Introduced merchant banking services under Rupali
Investment Limited Division-wise Deposit Mobilization in 2019
Launched CMSME products (Shohoj, Peshajibi, (Tk in cr)
Baboshayee, Sulov & Majhari)
Particulars Amount Particulars Amount
Implemented 100% online banking
Local Office 2,659.21 Barishal 1,727.27
All branches were facilitated with RTGS and BEFTN
Dhaka North 8,120.77 Chattogram 5,331.25
Installed own-branded ATM services Dhaka South 12,340.97 Cumilla 2,751.72
Continued with BACH and BEFTN operations Mymensingh 2,156.27 Rangpur 1,021.93
Received twice SAFA ‘Best Presented Annual Report Award’ Rajshahi 2,072.27 Sylhet 1,411.79
and ‘SAARC Anniversary Award’ for Corporate Governance Khulna 1,868.98 Total 41,462.43
as first prize in the Public Sector Banking Institutions
category High-cost deposits registered a growth of 55.89 percent, on
Received three times the first prize ‘ICAB National Award’ account of continuing liquidity pressures
for Best Presented Annual Report from ICAB, and once During the year, the Bank was pursued building a strong and healthy
ICMAB Best Corporate Award in the public sector banking deposit base through organising several deposit campaigns, while
institutions category also providing employee motivation towards mobilizing deposits.
Emerged as the first state-owned bank to introduce mobile A strong brand image, modernisation of branch interiors, efficient
banking services customer services, introducing of modern banking services,
etc., represented some of the main reasons that contributed to
Our Performance laudable deposit growth rate during the year.
We achieved creditable growth during the year 2019, as Loans and Advances
articulated below.
Total loans and advances continued to increase during the year.
Tk 193.23 cr operating profit
Achieved 6.44 percent growth in deposit volumes Five-year loans and advances growth:
(customer deposits)
Loans & advances
23.93 percent growth in loans and advances volumes 30,672.40
Tk 138.69 cr NPL recovered in 2019, thus aiding our bottom 24,749.06
line performance
20,667.27
Deposit Base 17,515.04
14,251.50
The total deposit of the Bank continued to increase.

Five-year deposit growth:

2015 2016 2017 2018 2019

Annual Report 2019 117

Division wise Deposit Mobilization in 2019 Division wise Credit Mobilization in 2019
Local Office 40% Barisal 3%
Local Office 6% Barisal 4%
Chittagong 9%
Sylhet 3%
Comilla 1%
Chittagong 13%
Rangpur 2%
Dhaka North11%
Rajshahi 5% Comilla 7%

Mymensingh 5%

Dhaka South 12%

Khulna 5%

Sylhet 1% Khulna 13%

Dhaka South 30% Dhaka North 20% Rangpur 4%
Rajshahi 3% Mymensingh 3%

Division-wise Credit Disbursement in 2019 Asset-liability mix is monitored to ensure expected profitability
levels, efficiency as well as to achieve diversification
(Tk in cr)
Off-balance sheet exposures, i.e., letter of credit, export and
Particulars Amount Particulars Amount guarantees are monitored as these are important sources
of fee based income
Local Office 12,383.72 Barishal 917.41
Dhaka North 3,378.76 Chattogram 2,901.57 Cost-to-income ratio is an important management tool to
determine the efficiency of consumption of resources for
Dhaka South 3,785.09 Cumilla 421.96
creating income
Mymensingh 784.55 Rangpur 1,193.98
NPL ratio gives the idea of the asset quality of the Bank and
Rajshahi 801.22 Sylhet 266.27 helps in prudently managing the asset portfolio
Khulna 3,837.86 Total 30,672.40
Net profit before tax measures the operating efficiency
Loans and advances were well-diversified, reflecting a de- of the Bank and is important for determining employee
concentrated portfolio; emphasis was on growing the SME productivity as well
book in 2019. Return on average equity (RoE) measures the return on the
RBL made adequate provisions against classified loans, as average capital invested in the business
per Bangladesh Bank guidelines. lEPS demonstrates the level of earnings generated per
The Bank’s classified loans portfolio stood at Tk 4,614.56 ordinary shares
cr in 2019. Cash recovery from classified loans stood at Tk RBL operates in a competitive market environment and yet has
138.69 cr. reported sustainable performance over the years and also in 2019.
Capital Management: Basel-II and Basel-III
Particulars 2019 2018 Growth
As per Basel-III guidelines issued by Bangladesh Bank, RBL Deposit 41,462.43 38,954.95 6.44%
has been continuously assessing it's capital requirements,
Loans and advances 30,672.40 24,749.06 23.93%
both in terms of Tier-I and Tier-II capital. All options have
been weighed in order to sustain a strong capital base, as Investments 10,364.62 8,233.65 25.88%
well as ensure enhanced long-term shareholders value. Export 2,689.27 2,600.20 3.43%
In order to support business growth, stress was placed on Import 15,401.83 11,402.15 35.08%
internal capital generation. More details regarding capital Foreign remittance 2,256.92 1,717.32 31.42%
management and Basel-III are disclosed in the Market CMSME 2,685.16 2,179.38 23.21%
Discipline- Pillar-III Disclosures under Basel-III chapter in
this report.
Particulars 2019
From March 2015 onwards, Basel-III implementation has
Operating Profit 193.23
commenced. According to Basel-III, the minimum required
capital of the Bank will be to the extent of Tk 2,565.14 cr in Interest Income 1,872.34
December, 2019. Interest Expenses 1,870.46
Monitoring the Bank’s Activities by means of Key Net Interest Margin(NIM) 0.04%
Financial Performance Indicators Net Interest Income (NII) 1.88
Net Income 54.63
The Bank tracks its performance against a number of benchmarks,
also known as key performance indicators (KPIs), which are both Return on Asset (ROA) 0.03%
financial and non-financial by nature. Return on Equity (ROE) 0.80%
Equity Multiplier (EM) 29.46%
Deposit performance is assessed in terms of cost and mix
Earnings per Share (EPS) (Tk) 1.32
of deposits
Cost-to-Income Ratio 93.56%
Credit is monitored in terms of yield on advances and
impairment charges Net Asset Value Per Share 40.75

118

Non-financial Key Performance Indicators
Customer satisfaction is an important non-financial
indicator in our KPI matrix
The expansion of ATMs and increase of customers/users of
our ATMs indicates enhanced customer satisfaction
Increased online banking facilities and electronic fund
transfers
Compliance status of the Bank measures the key non-
financial performance indicators
Risk factors and steps taken to effectively manage risks
Few external risks which may affect the business of the
Bank
General business and political climate of the country
Changes in credit profile/quality of borrowers
Changes in policies of regulatory authorities
Implementation of Basel-III compliance
Volatility in capital markets
Changes in money markets
Operational risks
Corporate Social Responsibility (CSR) and Green
Banking (GB)
At Rupali Bank, our CSR initiatives aim at responding to the
basic needs and requirements of the society. We contribute
to the causes of education, arts, crafts, culture, health,
sports, literature, publication, etc. A total of Tk 1.31 cr was
spent in 2018 in social activities.
Environment risk has been included under Core Risk
Management to ensure green banking. Various projects
financed by the Bank include bio-gas plant, renewable
energy/installation of solar panel, HHK brickfields, etc.
The green financing book of Rupali Bank rose to Tk 591.63
cr upto 2018. Some of the projects received re-financing
funds from Bangladesh Bank.
Rupali Bank Limited
Employee Assistance
We promote employee welfare through our pro-employee
HR policy. To achieve our long-term HR goals, we provide
such benefits to our employees, including bonus,
incentives, concessional car/housing loans, lunch benefits,
transportation, annual cultural and sporting events,
medical check-ups and treatments by the Bank’s doctor,
hospitalization benefits, maternity leave, death relief grant
scheme, pension fund, etc.
Future Outlook
The coronavirus (Covid-19) pandemic has unleashed widespread
economic pain and experts anticipate that it will take years
for economic normalization. The extent of relief packages and
government support will be crucial for revival, and so will be
consumer sentiment.
Rupali Bank is prepared to meet the challenges of the future and
expects to take the following initiatives.
Focus on loan book diversification to increasingly target
the large and growing agri and MSME sectors
Facilitate customer service through raising awareness on
mobile banking and digital banking
Focus on enhancing CASA, which is typically allow-cost
deposit base
Upgrade and modernize our branches with a view to
enhance customer comfort and confidence
Focus on recoveries on the one hand and arresting fresh
slippages on the other
Enhance the quality of our underwriting practices and
continue to remain selective in credit disbursement
Focus on employee training and skills development,
especially in the field of digital banking
Strengthen our income pool, especially non-funded
income base
Annual Report 2019 119
SEGMENTAL ANALYSIS
Rupali Bank is dedicated to provide best-in-class services by offering innovative products to the society where it operates. The Bank also
provides services suiting the needs of regional geographic areas and local demographic segments. The Bank possesses longstanding
competence to define market segments based on product benefits and customise offerings to suit specific needs. From inception, RBL
offers attractive financial products and services, considering the prevalent needs of its customers. Rupali Bank has two subsidiaries. The
business and performance overview of these are enumerated as follows:

(BDT in mn)

2019 2018
Particulars Growth
Amount % Amount %
Group Asset

Rupali Bank Limited 495,249.32 99.47% 461,290.11 99.42% 7%

Rupali Investment Limited 1,406.10 0.28% 1,492.41 0.32% -6%
Rupali Bank Securities Limited 1,239.04 0.25% 1194.33 0.26% 4%
Total 497,894.46 100% 463,976.85 100% 7%

(BDT in mn)

2019 2018
Particulars Growth
Group Revenue

Amount % Amount %
Rupali Bank Limited 30,011.01 99.60% 26,557.57 99.55% 13%
Rupali Investment Limited 57.37 0.19% 59.82 0.22% -4%
Rupali Bank Securities Limited 63.12 0.21% 60.00 0.22% 5%
Total 30,131.50 100% 26,677.39 100% 13%

(BDT in mn)

2019 2018
Particulars Growth
Operating Profit

Amount % Amount %
Rupali Bank Limited 1,932.28 96.41% 3,095.02 97.83% -38%
Rupali Investment Limited 36.52 1.82% 37.52 1.19% -3%
Rupali Bank Securities Limited 35.43 1.77% 30.99 0.98% 14%
Total 2,004.23 100% 3,163.53 100% -37%

NB: Operating profit declined on account of the Bank implementing the Government’s decision regarding fixed interest rate for loans
and advances @ 9%.

Shareholders’ equity

Total shareholders’ equity includes paid-up capital, share money deposits, statutory reserves, retained earnings and other reserves.
By the end of the year 2019, total shareholders’ equity decreased by BDT 17,039.48 million from BDT 17,216.40 million in 2018, which is
equivalent of (1.03) percent growth. Details are as follows:

(BDT in mn)

2019 2018
Particulars Growth
Amount % Amount %
Group Capital

Rupali Bank Limited 14,876.01 87.30% 15,076.94 87.57% (1%)

Rupali Investment Limited 1,100.37 6.46% 1,086.45 6.31% 1%
Rupali Bank Securities Limited 1,063.10 6.24% 1053.01 6.12% 1%
Total 17,039.48 100% 17,216.40 100% (1%)

120
 Rupali Bank Limited

Business segmentation

RBL’s business has been divided into four major segments – 12 Corporate Branch, Local Office and other Branches in Bangladesh.
Segmental business (deposits and loans) as on 31 December 2019 has been stated as follows:

(BDT in mn)

2019
Particulars
Amount Percentage
Local Office 26,592.13 6.41%
Motijheel Corporate 5,005.39 1.21%
Rupali Sadan Corporate 54,279.17 13.09%
Ramna Corporate 2,224.52 0.54%
Foreign Exchange Corporate 15,334.69 3.70%
Gulshan Corporate 4,288.75 1.03%
Deposits

Purana Palton Corporate 5,286.56 1.28%

Agrabad Corporate 15,312.94 3.69%
O.R Nizam Road Corporate 1,697.68 0.41%
Daulatpur Corporate 1,476.24 0.36%
Shamsbuilding Corporate 730.98 0.18%
Mitford Corporate 671.58 0.16%
S.K Road Corporate 1,668.11 0.40%
Mobile Banking 3,215.80 0.78%
Other Branches 276,839.71 66.77%
Total 414,624.25 100%

Percentage

6.41% 1.21% Local Office

Motijheel Corporate
Rupali Sadan Corporate
13.09% Ramna Corporate
Foreign Exchange Corporate
Gulshan Corporate
0.54% Purana Palton Corporate
3.70% Agrabad Corporate
1.03%
1.28% O.R Nizam Road Corpoate
66.77% 3.69% Daulatpur Corporate
0.18% 0.36% 0.41% Shamsbuilding Corporate
Mitford Corporate
0.16% S.K Road Corporate
Mobile Banking
0.40% Other Brances
0.78%

Annual Report 2019 121

 (BDT in mn)

2019
Particulars
Amount Percentage
Local Office 123,837.24 40.37%
Motijheel Corporate 16,901.65 5.51%
Rupali Sadan Corporate 7,355.33 2.40%
Ramna Corporate 6,260.47 2.04%
Loans and Advances

Foreign Exchange Corporate 1,504.83 0.49%

Gulshan Corporate 6,574.72 2.14%
Purana Palton Corporate 5,311.05 1.73%
Agrabad Corporate 17,429.96 5.68%
O.R Nizam Road Corporate 4,011.83 1.31%
Daulatpur Corporate 19,958.02 6.51%
Shamsbuilding Corporate 7,000.24 2.28%
Mitford Corporate 131.57 0.04%
S.K Road Corporate 4,471.53 1.46%
Others 85,975.60 28.03%
Total 306,724.04 100%

Local Office
28.03% 40.37% Motijheel Corporate
Rupali Sadan Corporate
Ramna Corporate
1.46% Foreign Exchange Corporate
Gulshan Corporate
0.04%
Purana Palton Corporate
Agrabad Corporate
O.R Nizam Road Corpoate
Daulatpur Corporate
2.28%
Shamsbuilding Corporate
6.51% Mitford Corporate
Others
1.31% 5.51% S.K Road Corporate
5.68% 2.40%
0.49% 2.04%
1.73% 2.14%

122
 Rupali Bank Limited

(BDT in mn)

Particulars Export Import Remittance

Local Office 7,687.60 77,485.90 35.00

Divisional Dhaka South 8,701.50 57,851.40 2,541.10

Divisional Office Dhaka North 1,461.00 5,327.20 3,051.50

Divisional Office Chattogram 2,917.70 12,715.30 962.50

Divisional Office Khulna 6,124.90 564.70 1,139.80

Summary

Divisional Office Rajshahi - 44.00 2,353.40

Divisional Office Rangpur - 26.70 351.00

Divisional Office Sylhet - - 2,968.30

Divisional Office Comilla - - 5,673.50

Divisional Office Barishal - - 1,063.00

Divisional Office Mymensing - 3.10 2,430.10

Total 26,892.70 154,018.30 22,569.20

Export Import
0.03 0.02
0.37 0.00
3.46 8.26
23%
29%

11% 50.31
37.56

5% 32%
Local Office Divisional Dhaka South Divisional Office Dhaka North
Local Office Divisional Dhaka South Divisional Office Dhaka North Divisional Office Chattogram Divisional Office Khulna Divisional Office Rajshahi
Divisional Office Chattogram Divisional Office Khulna Divisional Office Rangpur Divisional Office Mymensingh

Remitance
0.16% 11.26%
10.77%

4.71%
13.52%

25.14% 4.26%

5.05%

10.43%
13.15% 1.56%

Local Office Divisional Dhaka South Divisional Office Dhaka North

Divisional Office Chattogram Divisional Office Khulna Divisional Office Rajshahi
Divisional Office Rangpur Divisional Office Sylhet Divisional Office Cumilla
Divisional Office Barishal Divisional Office Mymensingh

Annual Report 2019 123

REPORT ON NON-PERFORMING
ASSETS (NPA)
Rupali Bank has mandated reduction of NPAs as a top priority.
Addressing default customers and bringing down the NPAs
by instilling strict lending and recovery discipline remain key
imperatives for the Bank.
The overall banking sector of the country was impacted by
specific factors, such as very high NPAs and probability of re-
classification of loans earlier rescheduled. Establishing and
maintaining good governance, managing NPAs prudently,
including relentless focus on recovery of bad loans and
increasing profitability, were the major challenges for 2019,
since recovery from rescheduled loans was not encouraging.
Major industrial sectors did not perform in line with expectations
mainly due to infrastructural bottlenecks.
NPA is a debt obligation where the borrower has not paid
previously agreed upon interest and principal repayments to
the designated lender for an extended period of time. NPAs
therefore do not yield any income to the lender. Therefore,
managing NPAs to keep it at the lowest possible level is at the
core of our business priorities. We have embedded the essence
of asset quality in our business values, thus instituting best
local as well as international practices throughout our business
processes.
Rupali Bank has a highly capable and focused recovery division,
dedicated to the management and recovery of impaired credit.
Some of the major responsibilities of this Division comprise
formulation of strategy and action plans for prevention of credit
losses, maximisation of recovery and rescheduling and/or
pursuing legal actions.
Under the present overall socio economic landscape, Rupali
Bank has prioritised to extend purpose-oriented credit facilities
with the required security/collateral support as per policy,
since diversion of funds is one of the key identified causes of
loan default. Hence, it has become imperative to keep close
surveillance on the borrower’s business operations and the
movement of the business’ key financial indicators in an
empirical manner.
During the year 2019, the NPA ratio of the Bank declined
significantly by 3.06%. The absolute figure shows a rise in
classified portfolio from BDT 44,288.54 million in 2018 to BDT
46,145.67 million in 2019, with the percentage of classified loans
moderating due to increase in loans and advances.
Movement in NPA accounts during the years 2019 and 2018
has been depicted in the following table:

Movement of classified loans (NPA)

BDT in mn
Particulars
2019 2018
Opening Balance of classified loans (NPA) 44,288.55 45,820.57
Add: Additions during the year 8,580.22 9,120.88
Less: Cash recovery during the year (836.20) (2,131.60)
Less: Adjustment during the year (5,886.90) (8,521.30)
Less: Write-off during the year - -
Closing balance of classified loans (NPA) 46,145.67 44,288.55
No. of reschedule loans 272 274

Movement of provisions made against classified loans (NPA)

BDT in mn
Particulars
2019 2018
Opening balance of provisions 12,517.10 11,027.11
Add: Additions made during the year 15.43 1,490.00
Less: Transfers to standard loan account during the year (2,488.60) -
Less: Adjustments during the year (0.60) (0.01)
Closing Balance of NPA 10,043.33 12,517.10

124
 Rupali Bank Limited

Sector-wise loan exposures and NPA status:

The following table indicates sector-wise exposure vis-à-vis sector-wise NPA of Rupali Bank Limited:

(Figure in Crore)

2019 2018
Name of the sectors and sub- Sector-wise Sector-wise
sectors Total loans Total loans
Total NPA NPA as % of Total NPA NPA as % of
and advances and advances
total portfolio total portfolio
Agriculture, Fishing, and
A 1023.87 31.51 0.68% 962.57 31.44 0.71%
Forestry
B Industry 18646.31 3061.01 64.58% 14910.62 2,950.06 64.88%
C Trade & Commerce: 6395.44 1283.58 27.82% 5145.94 1,242.29 27.01%
Construction(commercial
D real estate, construction and 594.66 62.19 1.35% 518.13 59.35 1.34%
land development loans):
E Transport: 300.54 2.97 0.06% 253.39 2.66 0.06%
F Consumer financing 1070.66 10.92 0.24% 983.76 10.19 0.23%
G Loans to financial institutions   0.27 0.01%   0.44 0.01%
H Miscellaneous 2640.92 291.35 6.31% 1974.65 132.42 5.76%
  **Total loans & Advances: 30672.40 4614.57 100.00% 24749.06 4428.85 100.00%

Bangladesh Bank declared special loan reschedule and one-
time exit policy of loans and advances of some particular heads
which were classified as bad and loss (BL) loans as on 31-12-
2018 through BRPD circular No 05 dated 16-05-2019. As per the
instructions contained in this circular, borrowers could apply
with 2% down payment for special reschedule for a maximum
period of 10 years or for one-time exit facility to repay the loan
within maximum 360 days with interest waiver facility.
Following BRPD Circular no 05/2019 and its subsequent
amendments, 576 borrowers applied for special reschedule and
one-time exit facility up to December 2019. The sum involved
was Tk 1,914.19 crore and cash down payment received
stood at Tk 19.48 crore up to December 2019. The number of
applications settled up to December 2019 stood at 196 and the
amount involved was Tk 563.56 crore, which was declassified
in December 2019, as per instructions of BRPD circular no
05/2019. Further, a large number of applications were received
after December 2019, which are under-process for disposal.
We expect a substantial position of classified loans will be
regularised through disposal of all pending applications.

Total NPA 2019 Total NPA 2018

0.24% 0.23%
0.06% 0.06%
0.01% 0.01%
6.31% 0.68% 5.76% 0.71%
1.35% 1.34%

26.77% 27.01%

64.58% 64.88%

Agriculture, Fishing and Forestry Industry Trade & Commerce Agriculture, Fishing and Forestry Industry Trade & Commerce
Construction (Commercial real estate, construction and land development loans) Construction (Commercial real estate, construction and land development loans)
Trasport Consumer Financing Loans to Financial Institutions Miscellaneous Trasport Consumer Financing Loans to Financial Institutions Miscellaneous

Annual Report 2019 125

OUR HUMAN CAPITAL
“We believe in continuous improvement and hold the view that each employee deserves the
opportunity for development while they contribute actively to the achievement of the Bank’s
objectives. We have frequent, honest and respectful engagements with our staff as part of our
efforts to provide a workplace that stimulates long-term thinking and places high importance on
action.”
- Md. Obayed Ullah Al Masud, Managing Director and CEO
Building a progressive and high-performance
organisation
At Rupali Bank, our decisions and actions are guided by our ethics
that are rooted in honour, enterprise, unity, professionalism
and commitment. As a financial services brand that focuses
on bringing out the best in our colleagues, we provide them
with extensive training and career development opportunities
to ensure that they possess the right skill-sets and attitude to
remain relevant to our customers and the industry, now and
well into the future.
At Rupali Bank, our human resource strategy is rooted in our
ambition to make our Bank a preferred place to work. We have
always believed that putting our customers first in everything
we do begins with having the right set of people who are
committed, loyal, resilient and quick to learn. As a financial
institution of repute, we ensure that everyone at the Bank feels
engaged and inspired to put in their best.
At Rupali Bank, we are focused on building future capabilities
and careers. Our business is constantly shaped by swift
technological change. Hence, we need to continuously
renew our skills, capabilities and behaviours. Further, the way
we are perceived as employers is also changing. Potential
recruits expect different career experiences, including flexible
working, career breaks, diversity and inclusivity, rewarding and
challenging environment and for their employer to share their
values. At the Bank, we’re changing our career planning and
capability development practices in line with these trends. We
are embracing more flexible ways of working to attract people
from diverse segments of the society. Besides, we have also
lucidly articulated our purpose so our employees know what we
stand for.
With more than three decades of growing our business
sustainably across Bangladesh, we understand and acknowledge
the diversity and range of the many markets and regions in
which we operate. As we deepen our expertise at the grassroots
and forge stronger relationships with our clients and customers,
we also help our colleagues broaden their perspectives across
the region so they are able to make considered decisions for the
long-term that are good for our customers, our communities
and our environment. This is fundamental to our aspirations in
empowering our human resources and developing tomorrow’s
leadership.
126
Tenets of our HR strategy
Rupali Bank’s distinctively prudent and risk-focused approach
to growing the business has been a constant since our founding.
As an integral part of our human resources strategy, we
encourage awareness, understanding and respectful behaviour
at the Bank to reinforce our values-based, risk-aware and yet
an entrepreneurial culture that fosters the go-getter spirit and
attitude.
Some of the other key levers of our HR strategy include:
Attracting and retaining qualified personnel and building
our employer brand as one that provides a long-term
career in financial services to make a difference in the lives
of customers
Retaining competent human capital through fostering a
challenging and growth-oriented workplace environment
Training and motivating our employees so that they
continue to remain applicable and relevant to our
customers’ requirements
Imparting training and exposing our employees to an
extensive variety of skill development programs
Encouraging performance excellence and also the way
the performance has been achieved, through rewards and
recognition (R&R)
Ensuring equal employment opportunity, irrespective of
race, gender, ethnicity, religious beliefs, etc.
Striving for aligning our human resources to embrace the
core values of the Bank to meet our strategic objectives
Upholding the ethical principles of the Bank at all times
Fostering the sense of innovation, customer-centricity and
customer-first attitude
Nurturing a corporate culture that is rooted in
competitiveness, prudence and progress
Igniting the spirit of ambition across our human resources
to assure career progression and lifestyle improvement
Including cutting-edge skill sets in addition to conventional
degrees and qualifications in our recruitment practices
Ensuring the highest levels of compliance with all
employment and labour laws
 Rupali Bank Limited

Striving to create a distinctive HR culture Employee health, safety and other assistance

Rupali Bank’s well-staffed and forward-looking Administration
and Human Resources Division is entrusted with the core
responsibility of managing the Bank’s large and diverse
workforce.
For ensuring streamlined and more organised human resource
management, the Board of Directors of the Bank has approved
a cohesive and comprehensive Human Resource Policy, 2011.
The tenets of this policy have been implemented in alignment
with Rupali Bank Employee’s Service Regulations, 1981. The
chief objectives of our human resource strategy are to attract
and retain qualified personnel by creating a congenial and
collaborative workplace that thrives on intellectual stimulation
and fellowship, while encouraging employees to augment
their skills, maintain professionalism and make the most of the
opportunities at the Bank.
At Rupali Bank, we promote the quality of our human capital
through our pro-employee policies that are anchored on enabling
our staff to realise their full potential. To achieve our long-term
goals, the Bank provides diverse facilities and offers a number
of substantial benefits to its employees, such as festival bonus,
incentives, housing loans at concessional interest rate, subsidized
food and lunch benefits at the canteen, pick-up and drop transport
facilities, exposure to annual cultural and sports event for
refreshment and rejuvenation, medical check-ups and treatment
by the Bank’s doctor, hospitalization benefits, maternity leave, day-
care facility, death relief grant scheme and pension fund, etc.
Further, all officials and employees of the Bank benefit from
high-quality medical consultation services at affordable costs
at Universal Medical College & Hospital, with whom we have an
association.

Our consolidated human capital in terms of Cultural and sports events

employment position group and other related
information: At RBL, our Sahitta and Sangskrity Parisad and Krira Parisad
are major employee-facing platforms that take care of their
wellbeing and welfare through providing exposure to cultural
No. of No. of
and sporting events.
employees employees
Particulars as on as on As part of employee engagement in 2019, Sahitta and Sangskrity
31-12-2019 31-12-2018 Parisad arranged a number of cultural programs, including those
Managing Director and on National and Historical Day. Further, in a major cultural highlight
26 (24+2*) 22 (20+2*)
Executives (MD to GM) of the year, RBL’s male and female cricket teams got the unique
Executives (DGM to AGM) 275(273+2*) 264 (262+2*) exposure to play in the 2nd Division Cricket League of Bangladesh.

Officers 3,605 3,195 Further, towards providing exposure to the outdoors and
enabling employees to showcase their competitive sporting
Staff 1,735 1,448 skills, RBL Krira Parisad arranges annual sports each year that
also helps in creating stronger bonding and engagement.
Total 5,641 4,929

Number of Branches 572 568 Employee’s perks and privileges

Employees per Branch 9.86 8.68 As a Bank that focuses on employee welfare and development,
with this area of emphasis under the direct surveillance our
* Contractual top leadership, the Board of Directors of the Bank approved
3.0 incentive bonuses, each equivalent to the basic salary
Total human capital by designation-wise hierarchy: component, recreation leave in addition to one month of basic
salary for every three years of service eligible for all permanent
No. of No. of employees.
employees employees
Particulars as on as on Some of the other employee-centric privileges include:
31-12-2019 31-12-2018 Provident fund facility
Managing Director 1* 1* Gratuity fund
Deputy Managing Director 3 3 Death cum retirement benefits
General Manager 22 (21+1*) 18 (17+1*) Leave encashment
Deputy General Manager 98 (96+2*) 90 (88+2*) Two festival bonuses
Assistant General Manager 177 174 Bangla New Year allowance
Senior Principal Officer 684 652 Employee house building loan scheme
Principal Officer 974 922 Motorcycle loan scheme
Senior Officer 1,235 1,272 Car loan scheme for executives

Officer 712 349 Children education allowance

Other 1,735 1448 Honorarium for passing Banking Diploma examinations

Total 5,641 4,929 In 2019, as many as 149 officials received the opportunity
of participating in various foreign trainings, workshops and
* Contractual seminars conducted by renowned organizations.

Annual Report 2019 127

Training and internship opportunities
Rupali Bank places high importance on staff training to ensure
that they serve our customer objectives in a professional,
prudent and competent way.
For achieving this, we have a dedicated and exclusive training
platform under the aegis of Rupali Bank Training Academy
(RBTA) that provides extensive training to enable our employees
to maintain and augment their professional skills, familiarize
them with basics in computer and about banking processes
and protocols, facilitate them to acquire knowledge in banking
operations, enable them to attend to the assigned task with
diligence and confidence and transform attitude and mindset to
offer satisfactory services to our clients.
Further, RBL also facilitates students by providing them with
cutting-edge internship opportunities, thus helping them
acclimatize with a real-time corporate environment, while also
exposing them to best practices in banking.
Training programs conducted for RBL employees
(RBTA & other organizations) during 2015-19
7097
6042 6205 5915
5754
2015 2016 2017 2018 2019
Training programs conducted for RBL employees
during 2015-19 (Only RBTA)
7000
5903 6157
5719 5766
2015 2016 2017 2018 2019
Leadership planning and pipeline
At RBL, our focus on succession planning is underscored by
our emphasis on internal promotions to fill our leadership
pipeline. Succession planning enhances the availability of
experienced and capable employees who are prepared to take
up challenging leadership roles as and when required. RBL has
embraced several initiatives to augment its succession planning
initiative over the years.
Performance Appraisal
At RBL, we continually strive to employ the right people in
the right place, develop their capacities through training and
128
retooling and reward their performance, while also considering
the way it has been achieved.
We do so through engaging in comprehensive performance
appraisal by which we are able to ensure a systematic and
periodic process that assesses an individual employee’s
job performance and productivity in relation to certain pre-
established criteria and organizational objectives.
Employee motivation through promotions and
rewards
RBL’s rewards and recognition platform is guided by its
Human Resource Policy 2011 that articulates specifications
around promotions, rewards and motivation for staff across all
organisational tiers.
Placing high emphasis on training and development
At RBL, the quality of our human resources is key in enabling
us to achieve our goals and ambitions. With a view to meet this
objective, we emphasise on training and capacity building that
not only enables our people to serve our customers in the best
possible way, but also to do so while embracing the highest
standards of ethics and discipline.
For achieving sustainable growth, RBL offers comprehensive
training courses round-the-year, including in-house training and
job rotation. The Bank also embraces constant improvement of
training processes, while also imparting need-based training,
training in Bangladesh and abroad, professional English training,
etc. The various categories of training programs include:
Foundation course
Managerial course
Skill development course
Workshops
Computer course
Addressing grievance with sensitivity and counselling
As a Bank that is open, transparent and promotes honesty, we
have ensured that employees have the right to challenge any
potential violation of their rights or any questionable practices
by filing a complaint or grievance. Such answers are replied to
in writing to maintain documentation, with reasons articulated
in detail. Employees have the right to appeal to any decision.
In fact we believe that customers also have the right to raise
grievances. Hence, customer complaints are taken into
serious consideration and are resolved as soon as possible
by the appellate authority in consultation with the respective
department.
Retirement and resignation
At RBL, our retirement and resignation policies are well-defined
in our Human Resource Policy, 2011, which is an upgraded
version of Rupali Bank Employees Service Regulation, 1981, and
which has been revised from time to time, as per Government
guidelines.
Age-group-wise value
Employee demographic is an important consideration for our
Bank. Such an analysis enables us to identify our core strengths,
 Rupali Bank Limited

direct allotment of resources in potential deficiency areas and Employee recruitment and promotion
facilitates us in better manpower planning.
As per RBL policy, every service holder retires at the fixed
age of 59/60 years. Further, various other reasons, including
2015 2016 2017 2018 2019
self-retirement, dismissal or death, has enforced manpower
18-29 Yrs 1026 438 431 281 710 reduction.

30-39 Yrs 2140 2606 2628 2611 2788 Hence, to address the deficit between the existing manpower
base and the actual requirement, we have ensured the
40-49 Yrs 1165 991+1* 981+1* 977+2* 1001(999+2*)
propagation of our well-defined recruitment practices. The
50-59 Yrs 1315 1400+2* 1115+1* 1056+2* 1142(1140+2*) Bank’s Human Resource Management Division (HRD) has been
consistently recruiting manpower, as per the recommendations
Total 5646 5438 5157 4929 5641 of BSC of BB at different grades to meet vacancies. To ensure
transparency and accountability, regular transfers and postings
* Contractual are also an important responsibility of HRD.
Age-group-wise human resource distribution
Employees recruited during 2015-19

1st 2nd 3rd 4th

1142 Year Total
2788 Class Class Class Class
1001
2015 91 - 23 28 142
2016 - - 53 49 102
2017 1 - 9 6 16
710
2018 1 - - - 1
2019 100 447 317 66 930
Total 193 447 402 149 1191
18 -29 30 -39 40 -49 50 -59
Employees promoted during 2015-2019
Promoting gender diversity
1st 2nd 3rd 4th
Year Total
As a Bank that promotes meritocracy and diversity at the Class Class Class Class
workplace, RBL is keen to ensure equal job opportunities for all
2015 357 5 43 39 444
employees.
2016 687 5 15 167 874
In fact, the Bank actively promotes gender diversity and has been
stepping up recruitment of women employees with the result 2017 391 21 183 38 633
that today the Bank possesses a growing number of women
employees on its rolls. The table below depicts the shift. Further, 2018 1121 14 86 32 1253
we have also identified issues such as those of pay parity, etc., 2019 424 36 311 200 971
with a view to promote women employment at our Bank.
Total 2980 81 638 476 4175
2019 2018
Employees’ financial contribution
4469
Male 4000(3996+4*)
(4465+4*) The performance of RBL is a direct outcome of the performance
Female 1172 929 of its employees. Thanks to the relentless efforts of RBL
employees, employee deposits have increased progressively
Ratio: 3.81 : 1 4.31 : 1 YoY. Despite uneven profits due to manpower additions and
other macro environment challenges, what has remained
(Regular + Contractual)*
consistent is the Bank’s emphasis on employee investments, as
Gender reflected in the table below.

Particulars 2015 2016 2017 2018 2019

Number of Employees 5646 5438 5157 4929 5641

Deposit per employee
44.96 51.33 61.95 79.03 73.50
(Tk. mn)
Investment per
14.64 14.65 13.26 17.04 18.37
employee (Tk. mn)
Operating profit per
0.44 (0.16) 0.99 0.63 0.34
employee (Tk. mn)
79.22% 20.78%
Salaries and allowances
0.43 0.77 0.76 0.95 0.85
per employee (Tk. mn)

Annual Report 2019 129

Activities performed during 2019: Total no. of
Promoted from Promoted to
Sl. Employees
According to letter no. 53.00.0000.311.11.012.15.527, dated: (post) (post)
promoted
21/09/2015 issued by the Ministry of Finance, Bangladesh Bank
Principal Officers Senior Principal
has capped regulatory jurisdiction on direct recruiting at Grade-9 6. 27
(Tech.) Officers (Tech.)
and Grade-10 (As per national pay-scale/2015) for nationalized
7. Senior Officers Principal Officers 100
banks and financial institutions. The full recruitment cycle is
executed under the disposal of “Bankers Selection Committee Senior Officers Principal Officers
8. 70
(Tech.) (Tech.)
(BSC)”, as guided by Bangladesh Bank.
9. Officers Senior Officers 90
‘BSC’ had sent a number of finally selected candidates 10. Junior Officers Officers 36
to Rupali Bank for issuing appointment letters against Assistant Officer
different posts. Out of those, a list of newly joined 11. Junior Officers 122
Grade-1
employees at different posts is shown below. A winding of Assistant Officer Junior Officers
this process of appointing the tail-enders of those finally 12. 04
Grade-1 (Cash) (Cash)
selected candidates, may carry forward through the first
Assistant Officer Assistant Officer
quarter of 2020. 13. 134
Grade-2 Grade-1
‘BSC’ recruited newly joined employees at different posts Assistant Officer Assistant Officer
14. 30
by the year 2019 Grade-2 (Cash) Grade-1 (Cash)
Office Assistant (CTP/ Assistant Officer
15. 00
Newly Jamader/CTG) Grade-2
Sl. Date of
Name of designation joined Office Assistant (CTP/ Assistant Officer
No. joining 16. 21
employees Jamader/CTG) Grade-2 (Cash)
1. Officer (Cash) 245 07-01-2019 Office Assistant Office Assistant
17. 07
2. Officer (Cash) 40 18-07-2019 (MLSS-Jamader) (Caretaker -Peon)
3. Officer (Cash) 19 18-11-2019 Office Assistant Office Assistant
18. 193
Senior officer (Asstt. (MLSS -Peon) (MLSS – Jamader)
4. 26 20-10-2019
Programmer) TOTAL = 971
Senior officer (Asstt.
5. 54 20-10-2019 ** “Deputy Managing Directors’” promotions are under the
Hardware Engr.)
jurisdiction of FID, Ministry of Finance, and the remaining grade
Asstt. Engr. – Civil (Senior promotions are under the jurisdiction of RBL’s top management
6. 05 01-08-2019
Officer) and Board of Directors’ approval.
Asstt. Engr. – Mechanical
7. 07 01-08-2019
(Senior Officer) Human Resources Division Plan of Activities for 2020:
Asstt. Engr. – Electrical
8. 05 01-08-2019 It is expected that Bankers Selection Committee (BSC) will
(Senior Officer)
complete all the necessary formalities as soon as possible
Asstt. Engr. – Architect to finalize candidate selection for the different posts. For
9. 02 01-08-2019
(Senior Officer) instance, viva-voce for the post of “Senior Officer” started
10. Officer (Cash) 143 22-12-2019 on 24 February 2020 and 26 February 2020, whose phase
Total = 546 will end by 16 March 2020. Recently, the result of Senior
Officers has been published by BSC on 30 June 2020. We
Moreover, success achieved in recruiting quality talent was have a list of 423 selected candidates allotted for Rupali
complemented by several promotions during the year 2019. Bank for issuing appointment letters for Senior Officer.
Additionally, a list of selected tail-enders comprising 54
According to base-period of 31-12-2018, the following candidates for Officer (Cash) post has been given by BSC
promotions are successfully offered: for us to issue appointment letters.
In the same way, another process of recruiting “Officers” is
Total no. of underway. The phase of the written test has ended.
Promoted from Promoted to
Sl. Employees Web-based customization and modernization of HRMS
(post) (post)
promoted (Human Resources Management System) software,
Deputy Managing especially for “auto-posting place self-tracking” could not
1. General Managers 01
Directors ** be achieved as per the expected scale that was declared
2. Deputy General Managers General Managers 13 for the previous year target. Other additional wings
of development in the HRMS software were achieved
Assistant General Deputy General
3. 28 impressively in the previous year. Hence, our prolonged
Managers Managers
target of consequences in HRMS software rests to gain this
Senior Principal Assistant General year.
4. 31
Officers Managers
Bangladesh Bank had initiated a “Code of Conduct for
Senior Principal Banks & Non-Bank Financial Institutions” vide DFIM
5. Principal Officers 64
Officers circular no. 04, dated: 12 December, 2017. Board of

130
 Rupali Bank Limited

Directors of Rupali Bank have approved a customized
Bangla version of that manual as “Kg©Pvix AvPiY wewagvjv” for
Rupali Bank on 25.06.2019 at the 1,079th Board Meeting.
Mass dissemination of the manual throughout all levels of
our offices/branches is expected to be completed by this
year.
According to the “National Integrity Strategy (NIS)”,
best practices in employee selection and rewards and
recognition principle under “Integrity Award Giving Policy,
2017” was developed and coined on 06 April, 2017 by the
Cabinet Division of the People’s Republic of Bangladesh.
Later, some adaptations in the award policy came forward
under BRPD circular no. 08, dated: 08.08.2018. Last year,
we set the target to give awards as per NIS, but could not
manage to finish it. In the meantime, a correction in the
NIS award policy was also made by the Bangladesh Bank
on 04 December 2019. Hence, we remain on strict target
of achieving pending NIS award dissemination as early as
possible within 2020.
According to the “National Integrity Strategy (NIS)”, best practices
in employee selection and rewards and recognition principle
under “Integrity Award Giving Policy, 2017” was developed
and coined on 06 April, 2017 by the Cabinet Division of the
People’s Republic of Bangladesh. Later, some adaptations in the
award policy came forward under BRPD circular no. 08, dated:
08.08.2018. Last year, we set the target to give awards as per NIS,
but could not manage to finish it. In the meantime, a correction
in the NIS award policy was also made by the Bangladesh Bank
on 04 December 2019. Hence, we remain on strict target of
achieving pending NIS award dissemination as early as possible
within 2020.

Existing no. of Existing no. of

Summary set up of Head Office & Field Summary of Posts approved in 2016
Offices/Branches employees
Offices approved in 2016 and amendments approved afterwards
(As on 31.12.19) (As on 31.12.19)
Categories of Offices Offices Branches Offices Branches Designations Posts Posts

Head Office Divisions 39 38 Managing Director & CEO 01 01

Divisional Offices 10 10 Deputy Managing Directors 03 03

Zonal Offices 30 27 General Managers 21 21

Local Office 01 01 Deputy General Managers 106 96

Corporate Branches - 1 20 14 Assistant General Managers 197 177

Corporate Branches - 2 90 79 Senior Principal Officers 809 684

Urban Branches - 1 125 121 Principal Officers 1,233 970

Urban Branches - 2 180 149 Senior Officers 3,289 1,235

Rural Branches - 1 100 93 Officers 4,209 712

Contractual (From GM to SPO
Rural Branches - 2 w200 115 10 03
level)
TOTAL = 716 572 Staffs – Class III 2,911 804

Staffs – Class IV 2,120 931

TOTAL = 14,909 5,641

Annual Report 2019 131

PRODUCTS AND SERVICES OF
RUPALI BANK LIMITED

Deposits Loans and Advances General

Products
Current Deposit (CD)
Call Deposit (CDR) Industrial Project Loan/Term Loan

Special Notice Deposit (SND) Cash Credit (Hypothecation)

Cash Credit (Pledge)
Savings Deposit (SB)
Overdraft (OD)
Fixed Deposit (FDR)
Bank Guarantee
Loan under Equity Entrepreneurship
Fund (EEF)
Schemes Green Project Loan
Renewable Energy Project Loan
Rupali Millionaire Deposit Scheme
(RMDS) Syndication/Consortium Loan
Rupali Monthly Benefit for Senior PPP Loan
Citizens (RMBSC) General House Building Loan
Rupali Senior Citizens Savings Scheme Executive Car Loan
(RSCSS) House Building/Flat Loan for
Rupali Monthly Savings Scheme Government Employee
(RMSS)- SHOPNO Student Loan
Rupali Kotipoti Deposit Scheme (RKDS)
Rupali Lakhopoti Deposit Scheme
(RLDS)
Cottage, Micro, Small and
Rupali Quarterly Profit Scheme (RQPS)
Medium Enterprise Loan (CMSME)
Rupali Double Benefit Scheme (RDBS)
Shohoj
Peshajibi
Baboshayee
School Banking Account
Sulov
Rupali School Banking Account (RSBA) Majhari
Under the 5 (five) SME products, loan
to Solar Installation, Bio-gas and Agro-
based project and Trained-Efficient
No Frill Accounts (NFAs) professionals are provided as the
specialized area.
Farmers Savings Accounts
Woman Entrepreneur Financing
Freedom Fighter Savings Accounts Program
Garments Workers Savings Accounts Cluster Financing
National Service Holder Accounts Karma Bandhob Rin (PROYASH) Small
Enterprise Financing Manufacturing
Physically Challenged People Accounts
Fixed Assets Financing
Working Capital Financing

Street and Working Children

Account
Trading
POTHFUL (Special Savings Account)
Working Capital Financing

132
 Rupali Bank Limited

Green Finance Export Finance

Solar Energy, Bio Gas, Bio-Fertilizer, Pre-shipment Credit

ETP, Water Purification Plant, Waste
Management Plant & HHK (Hybrid
Hoffman Kiln) Brick Field, Forestation,
Mashroom project, Horticulture and many
other under Bangladesh Bank’s guideline.
Rural and Agro Credit
Youth/Farmers’ Loan
Fishery Loan
Goat/Sheep Rearing Loan
Dairy Loan
Poultry Loan
Micro-Credit for the Handicapped
Micro-Credit
Solar-Energy and Bio-Gas Plant
Installation Loan
Shrimp Cultivation Loan
Loan Against Crop Storage in Silos-
SHAGARIP
Loan Against Pulses seeds for edible
oil, spices & maize cultivation
Loan for Tree Plantation
Bank-NGO Linkage Credit
Socio-economic & poverty alleviation
loan
Zero (0) Coupon Lending for Tomato
Production & Marketing.
Cash Credit Against Hypothecation of
Raw Materials/Exportable Goods
Cash Credit Against Pledge of Raw
Materials/Exportable Goods
Packing Credit (PC)
Back to Back L/C
Back to Back L/C under Export
Development Fund (EDF)
Post-shipment Credit
Negotiation/Purchase of Export
Documents/Bill
Collection of Export Documents/Bill
Foreign Bill Purchase (FBP)
Advance against Export Bill sent for
collection
Inland Bills Purchase (IBP)
Export Bill Discounting
Advance Against Cash Incentive/Cash
Subsidy
Bond
Wage Earners Development Bond
Investment Bond
Premium Bond

Guarantee

Bid Bond
Foreign Exchange Business
Performance Guarantee
All sorts of Foreign Exchange Warranty Guarantee
Transactions are handled by Rupali Bank Shipping Guarantee
Limited under ‘Guidelines for Foreign
Exchange Transactions (GFET 2018), Guarantee Against Foreign Bank’s
UCPDC-600, URR-725, URC-522, ISBP, Counter Guarantee
Guideline for Operation Manual on Advance Payment Guarantee
Foreign Trade Financing’, Bangladesh Customs and Excise Guarantee
Bank and Latest Import and Export
Policy Order of the government.

Treasury

Foreign Currency Accounts Treasury Bills

Treasury Bonds
Import Finance
Debenture
Letters of Credit REPO
Payment Against Document (PAD) Reverse REPO
Loan against Imported Merchandise (LIM) Money Market Operation
Loan against Trust Receipt (LTR) TT Discount/TT Remittance

Annual Report 2019 133

 Forex and Fund Management Foreign Remittance

Commercial Paper Automated Remittance Management

System
Bangladesh Bank Bill
Spot Cash Payment
Share
Customer Service Centre (CSC)
Mutual fund
Services Paid to the common people as a
Subordinate Bond state –owned Bank Utility Bills Collection
Corporate Bond
Inter Bank Repo
All sorts of Dealing Room Operation Service to Education Sector
including Forward Buy-sell, Spot Buy-sell,
Corporate Buy-sell, Speculation, SWAP etc. Primary Education Stipend Project
Salary paid to the teachers of private school,
colleage, Madrasha, Technical, Ebtedayee
madrasha, Tol, Pali, Sankskrit etc.
Fund Transfer

BEFTN
Inter-Branch Money Transfer Common Services to the
Customers/Stakeholders
Telegraphic Transfer/Demand Draft/
Mail Transfer Remittance Services to the NRB
Automated Inward Foreign Remittance Endorsement Passport for the Travelers
Opening government L/C
Issuing Saving Certificate
Modern Banking Services Prize bond Purchase and Sale
Pension payment to the government
Core Banking Solution (CBS)- employees
IntellectTM 10.0
Online transaction facility (ABB)
SWIFT
Special Services
ATM & POS under NPSB (National
Parment Switch Bangladedsh) Online Deposit Collection Services for
BACH Hajj Pre-registration and Registration
Zakat Fund Collection Services
RTGS
Information Services to the Government
SMS Alert Services. Organization
Services to the non-privileged
Bank account for freedom fighters
Loan disbursement in spices sector at a
Mobile Financial Services
concessional rate of interest
Rupali Bank SureCash Pension payment to the retired army
officers and staff
Rupali Bank Agent Banking Services
Changes of Split /soiled notes
E-GP (e- government Procurement)
Web based e-mail complain services
Value Added Service Old/aged allowances
Bank account for farmer
Locker Service
Bank services for physically handicapped
people
Bank account for grants receiving under
hindu kallan trust
New Products and Services
Disability allowance
Merchant Banking Services Bank account for farmers
Capital Market Services Bank account for resident of former enclaves

134
 Rupali Bank Limited

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Annual Report 2019 135

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136
Rupali Bank Limited

Annual Report 2019 137

 SUBSIDIARIES OF
RUPALI BANK LIMITED

RUPALI INVESTMENT LIMITED

itself as a trusted brand in managing issues for diverse
companies.

Underwriting

RIL renders underwriting support either singly or through a

consortium to companies seeking long-term funds from the
capital market. It assists companies to float equity and debt
instruments in the secondary market and gives confidence by
giving underwriting commitments to acquire the unsubscribed
portion of the issue, if any.

Portfolio management

RIL has been playing a dynamic role in managing its own

Rupali Investment Limited (RIL) is a full-fledged merchant bank,
wholly-owned by Rupali Bank Limited, and was incorporated portfolio by investing in securities, both in primary and
on 27 October 2010 under the Companies Act 1994, under BSEC secondary markets. Being a subsidiary of the Bank and a leading
regulations. merchant bank in Bangladesh, RIL contributes significantly to
the development of the capital market through active portfolio
Importantly, the Board of Directors of RIL upholds the principles
of ethics and integrity and embraces the highest standards of management.
governance across all its business activities. The management
of RIL places integrity of its investment policy and the interests Managing investor accounts (investors' scheme)
of shareholders above everything else.
One of the foremost activities of RIL comprises Investors Scheme,
The employees of RIL act in an ethical manner with integrity, which includes both discretionary and non-discretionary
competence, diligence, professionalism and respect to the services. This scheme is an opportunity for general investors to
public, prospective clients, colleagues and other participants in
participate in the secondary market and create value in the long-
the business.
run. Topnotch customer service is an integral part of this service.
Products and services of RIL
Capital structure of RIL as on 31 December, 2019
Issue management
(Tk. in cr)
RIL offers specialized services related to issue management to
state-owned enterprises, local statutory bodies and also the 2019 2018
corporate sector. It has been providing comprehensive issue
management, consultancy and corporate advisory services as Paid-up capital 100 100
a capital market intermediary. Since inception, RIL has assisted Retained earnings 10.03 8.64
a number of different fundamentally strong companies to float
Total 110.03 108.64
their securities in the capital market and has hence established

138
 Rupali Bank Limited

Board of Directors of Rupali Investment Limited At the end of 2019, 812 investors' accounts were active and
margin loan amounting to Tk 21.20 cr was as outstanding under
Sl. Name Designation this scheme.
1. Mr. Md. Obayed Ullah Al Masud Chairman Financial results
2. Mr. Arun Kanti Paul Director
Operating profit
Mr. A. K. M. Shariat Ullah, FCA, Independent
3.
ACCA Director Operating profit stood at Tk 57.35 mn in 2019, as compared to Tk
4. Mr. Morshed Alam Khandaker Director 59.80 mn in 2018. The following table shows sector-wise income
of RIL in 2019, as compared to the previous year.
5. Mr. Mohammad Shofiul Alam Director
6. Mr. Md. Shofiqul Islam Director (Fig in Tk mn)
Independent
7. Prof. Dr. Shofiq uz Zaman Particulars 2019 2018
Director
Interest Income 14.64 18.88
Independent
8. Mrs. Nasrin Sultana Fees & Commission 1.39 3.34
Director
CEO & Ex-Officio Dividend Income 22.61 17.91
9. Ms. Parsoma Alam
Director Capital Gains 13.65 11.28
Other Income 5.05 8.38
Overview, 2019
Total 57.34 59.79
Issue Management
Expenditure and provisions
Through our Issue Management function, we have managed
IPOs and rights issues. We are enlisted M.L. Dyeing Limited at Total expenses incurred during 2019 stood at Tk 2.03 cr. Expenses
DSE & CSE through its IPO issue in 2018, and also submitted on account of salaries and allowances stood at Tk 0.84 cr, and Tk
another issue of Anik Trims Limited to BSEC on 30 September 0.54 cr was on account of rent, taxes, insurance, electricity, etc.
2019 for IPO permissions. Moreover Tk 1 cr has been kept as provision against investment
in securities. In addition, an amount of Tk 0.86 cr has also been
Underwriting: provisioned for tax @ 37.5 % on operating income, 10% on
capital gains and 20% on dividend income.
We have complied some sort of underwriting of various
companies in different sectors, such as banks, textiles, Net profit
pharmaceuticals and power over the last few years.
The company made a net profit of Tk 1.31 cr in 2019, whereas
Portfolio Management and Investors' Scheme: net profit of Tk 1.50 cr in 2018.

This is a popular and attractive scheme for investors. Under the Summary of financial results:
scheme, investors get the opportunity to invest their funds in the
(Fig in Tk cr)
capital market through our structured portfolio management
services. In addition, they also receive financial support in terms Particulars 2019 2018
of margin loans for purchasing securities. Income 5.73 5.98
RIL’s management approach is driven by the objective Expenditure 2.03 2.22
of maintaining a strong capital base, reflected through a Net Profit / (Loss ) Before Tax & Provision 3.70 3.75
strong capital adequacy ratio (CAR) in order to support the Provision against investment in Securities 1.00 1.14
implementation of its growth plans and business strategies, Provision against negative equity 0.50 0.31
while meeting regulatory capital requirements at all times.
Profit/(Loss) before tax 2.20 2.29
In 2019, investor response remained muted because of bearish Provision for tax 0.86 0.78
and highly volatile market conditions. As a reputed investor- Net Profit / (Loss ) 1.31 1.50
facing platform, RIL extended all sorts of assistance to investors
Retained Earnings 10.03 8.64
for managing their portfolio efficiently. Margin loans were also
provided in accordance with the directives of the BSEC. EPS (Tk) 0.13 0.15

Annual Report 2019 139

RUPALI BANK SECURITIES LIMITED (RBSL)
Keeping up with the ever-changing and ever-growing
business environment
Advising clients effectively and providing them with
exceptional choices
Developing business in such a way that it benefits both the
clients and the company
Ensuring efficient decision-making through powerful
information systems and highly qualified personnel
Placing tremendous emphasis on retaining good
employees and rewarding those who perform successfully
to achieve the Company’s goals
Capital structure of RBSL
Rupali Bank Securities Limited (RBSL) is a fully-owned
subsidiary of Rupali Bank Limited. RBSL obtained license from (Tk. in cr)
the Bangladesh Securities and Exchange Commission (BSEC)
Particulars 2019 2018
and Central Depository Bangladesh Limited (CDBL) to engage
in stock brokerage activities as well perform role as a full service Paid-up capital 103 100
depository participant to CDBL. Retained earnings 3.30 5.30
Total 106.30 105.30
As a subsidiary of a prominent state-owned commercial bank,
RBSL provides services to clients with the highest levels of ethics
Board of Directors of Rupali Bank Securities Limited
and governance. After commencing the business, the institution
has been playing a significant role in the development of the
country’s capital markets. Sl. Name Designation
1. Mr. Md. Obayed Ullah Al Masud Chairman
RBSL is a public limited company under the Companies Act
2. Mr. Mohammad Jahangir Alam Director
1994, and was incorporated on August 29, 2013. The institution
obtained DSE membership on November 22, 2012 and DSE 3. Mr. Khondoker Ataur Rahman Director
brokerage and dealer license on September 04, 2014 (TREC# 4. Mr. Md. Shawkat Jahan Khan, FCMA Director
246). After all approvals, the company started its first trading
5. Ms. Mursheda Zaman Director
activity on January 08, 2015.
Independent
6. Professor Dr. Md. Akram Hossain
Products and services Director
Independent
Full service depository participant (DP) of CDBL 7. Mr. Md. Wahiduzzaman Khandaker
Director
BO account opening CEO & Ex-Officio
8. Ms. Wahida Begum
Buying and selling of securities on the DSE Director
Margin loan facilities
Financial results
Online trading facilities
Operating profit
Custodial services
Share pledging services Operating profit stood at Tk 35.43 mn in 2019, as compared to Tk
Fund transfer by BEFTN 30.99 mn in the year 2018. The following table shows sector-wise
income of RBSL, as compared to the previous year.
Telephonic trading facility
Business principles (Fig in Tk mn)

Creating effective long-term relationship with clients and Particulars 2019 2018
working with them as a team to achieve common goals and Interest Income 38.27 26.35
objectives
Fees & Commission 9.54 10.07
Maintaining positive morals, job ethics and ambition
Dividend Income 9.36 14.54
among team members
Capital Gains 5.94 9.04
Providing need-based solutions to clients to ensure loyalty
and repeat business Total 63.12 60.08

140
 Rupali Bank Limited

Expenditure and provisions Summary of financial results:

(Fig in Tk cr)
Total expenses incurred during 2019 stood at Tk 2.76 cr.
Expenses on account of salaries and allowances stood at Tk Particulars 2019 2018
Income 63.12 60.08
1.55 cr, and Tk. 0.40 cr was on account of rent, taxes, insurance,
Expenditure 27.68 29.01
electricity, etc. Moreover Tk 1 cr was kept as provision against
Profit / (Loss ) Before Tax & Provision 35.43 30.99
investment in securities. In addition, an amount of Tk 1.11 cr
Provision against investment in Securities 11.20 8.50
was also provisioned for tax @ 35% on business income, 10% on
Provision against negative equity 3.05 0.26
capital gains and 20% on dividend income. Profit/(Loss) before tax 21.18 22.23
Provision for tax 11.09 7.15
Net profit
Net Profit / (Loss ) 10.09 15.07
The company made a net profit of Tk 1.00 cr in 2019, whereas Retained Earnings 33.09 53.00
net profit stood at Tk 1.50 cr in 2018. EPS (Tk) 0.10 0.15

Annual Report 2019 141

RISK MANAGEMENT COMMITTEE

Md. Khalilur Rahman Mohammad Delwar Hossain A. K. M. Delwer Hussain, FCMA

Member Chairman, Member,
Risk Management Committee Risk Management Committee Risk Management Committee

Arijit Chowdhury Md. Rizwanul Huda

Member, Member
Risk Management Committee Risk Management Committee

142
 Rupali Bank Limited

REPORT OF THE
RISK MANAGEMENT
COMMITTEE

Mo e
ha tte
mm mmi
o
ad D ent
C
elwar an agem
Hossa in Chairman, Risk M

IN COMPLIANCE WITH THE BANK COMPANY ACT (AMENDED 2013) AND BRPD CIRCULAR 11 DATED
27 OCTOBER 2013, THE BOARD RISK MANAGEMENT COMMITTEE HAS BEEN FORMED. BOARD RISK
MANAGEMENT COMMITTEE FUNCTIONS AS A SUB-COMMITTEE OF THE BOARD OF DIRECTORS. THE RISK
MANAGEMENT COMMITTEE WAS FORMED TO FULFILL AN EFFECTIVE ROLE IN MITIGATING IMPENDING
RISKS ARISING OUT OF VARIOUS ACTIVITIES OF THE BANK. STRATEGIES AND POLICIES FORMULATED BY
THE BOARD HAVE BEEN ENTRUSTED TO THE COMMITTEE WITH A VIEW TO ENABLE THEM TO DISCHARGE
THEIR RESPONSIBILITIES. AFTER ADDRESSING AND ASSESSING VARIOUS RISK AREAS, LIKE CREDIT RISKS,
FOREIGN EXCHANGE RISKS, INTERNAL CONTROL AND COMPLIANCE RISKS, MONEY LAUNDERING RISKS,
INFORMATION AND COMMUNICATION RISKS, MANAGEMENT RISKS, INTEREST RISKS, LIQUIDITY RISKS
ETC.; THE RISK MANAGEMENT COMMITTEE SCRUTINIZES WHETHER APPROPRIATE RISK MANAGEMENT
MEASURES ARE BEING PUT IN PLACE AND APPLIED, AND WHETHER ADEQUATE CAPITAL AND PROVISION
IS BEING MAINTAINED AGAINST THE RISKS IDENTIFIED.
Annual Report 2019 143
Risk Management Committee of RBL, in collaboration with the will supervise formation of separate management-level
Chairman of the Board and Managing Director & CEO, arranged committees and monitor their activities towards ensuring the
several meetings with loan defaulters of the Bank to accelerate compliance of instructions of lending risk, foreign exchange
recovery activities and to create an environment that actively transaction risk, internal control and compliance risk, money
promotes loan recovery. This attempt has been appreciated by laundering risk and information and communication risk,
the Governor of Bangladesh Bank. The Bank set a tremendous including other risk-related guidelines.
example in the country’s banking sector for reducing NPLs. Such
meeting is held on a regular basis. iii) Analysis and approval of Risk Management policy:
Risk management policies and guidelines of the Bank should
Composition of Risk Management Committee (RMC) be reviewed annually by the Committee. The Committee will
propose amendments, if necessary, and send them to the
The Board Risk Management Committee (31 December 2019) Board of Directors for their approval. Besides, other limits
comprises the following members: including lending limit should be reviewed at least once
annually and should be amended, if necessary.
Sl. Name of Members Status in Status in the
No. Bank Committee iv) Storage of data and Reporting system:
Mr. Mohammad Director of Adequate record keeping and reporting system developed
01 Chairman
Delwar Hossain the Board by the Bank’s management will be approved by the Risk
Director of Management Committee. The Committee will ensure
02 Mr. Arijit Chowdhury Member proper use of the system. The Committee will minute its
the Board
Mr. A K M Delwer Director of proposal, suggestions and summary in a specific format
03 Member and inform the Board of Directors.
Hussain, FCMA the Board
Mr. Md. Rizwanul Director of v) Monitoring the implementation of the overall Risk
04 Member
Huda the Board Management Policy:
Mr. Md. Khalilur Director of Risk Management Committee will monitor proper
05 Member
Rahman the Board implementation of the overall risk management policies.
They will monitor whether proper steps have been taken
Organizational Structure of RMC: to mitigate all risks, including lending risk, market risk and
1. Members of the committee were nominated by the Board management risk.
of Directors from within themselves;
vi) Other responsibilities:
2. The Risk Management Committee comprises 05 (five)
Board members; 1. Committee’s decision and suggestions should be
submitted to the Board of Directors on a quarterly
3. Members are appointed for a 3 (three) year term of office; and basis in short form;
4. Company Secretary of the Bank is the Secretary of the Risk 2. Comply instructions issued time to time by the
Management Committee. controlling body;
Roles and Responsibilities of the Risk Management 3. Internal and external auditor will submit respective
Committee: evaluation reports, whenever required by the
i) Risk identification & control policy: Committee.

Formulation and implementation of appropriate strategies Meetings:

for risk assessment and its control is the responsibility of
the Risk Management Committee. The Risk Management
Committee will monitor the risk management policies and
methods and amends them, if deemed necessary. The
Committee will review the risk management process to
ensure effective prevention and control measures.
ii) Construction of organizational structure:
The responsibility of the Risk Management Committee is to
ensure an adequate organizational structure for managing
risk within the Bank. The Risk Management Committee
1. The Risk Management Committee should hold at least 4
meetings in a year and it can sit any time as it may deem fit;
2. The Committee may invite Chief Executive Officer, Chief
Risk Officer and any other Officer to its meetings, if it deems
necessary;
3. To ensure active participation and contribution by the
members, a detailed memorandum should be distributed to
Committee members well in advance before each meeting;
4. All decisions/observations of the Committee should be
noted in minutes.

Meeting of the Board Risk Management Committee during the year 2019

Sl. No. Name of Directors Position Date of appointment Meeting held Attended
01 Mr. Mohammad Delwar Hossain Director & Chairman 23-07-2019 1 1
02 Mr. Arijit Chowdhury Director & Member 06-01-2016 1 1
03 Mr. A. K. M. Delwer Hussain Director & Member 06-02-2017 1 1
04 Mr. Md. Rizwanul Huda Director & Member 08-02-2018 6 6
05 Mr. Md. Khalilur Rahman Director & Member 29-01-2019 1 1

144

Activities and deliberations during the year 2019
Special activities of the Risk Management Committee during
2018-2019
Taking into account Bangladesh Bank’s Audit Report, the Risk
Management Committee decided to share these issues with
the managers of RBL. In doing so, the Committee, along with
relevant department’s officers, visited 10 divisions and shared
with all managers the findings in an open discussion.
The Board Risk Management Committee carried out its regular
functions on areas pertaining to its responsibilities dutifully
throughout the year. Activities and major decisions made during
the year are as follows:
Reviewed all the reports, such as Basel-III, stress testing,
ICAAP, Comprehensive Risk Management Report, Risk
Assessment Report, etc., and the functions of core Risk
Management Committee of RBL;
Reviewed risk management policy, guideline and limits;
Measured and monitored risk involved in different areas of
RBL;
Conveyed meetings with each core risks management
committee for reviewing and monitoring the
implementation of CRM guidelines quarterly;
Monitored compliance issues regarding risk management
of RBL;
Established proper organizational structure of core risk
management committee;
Initiatives have been taken for the implementation of Core
risk management guidelines;
Conveyed monthly/quarterly or necessity-based meetings
with different stakeholders of the risk management
process;
Recommended and made suggestions to the management
to improve the comprehensive risk management rating,
CAMELS rating, Core Risk rating, etc.;
Submitted a summary of decisions and recommendations
of the Committee to the Board of Directors on a quarterly
basis;
Arranged meetings as and when required on various
issues to determine strategies consistent with the risk
management policy, which can measure, monitor and
maintain acceptable risk levels of the bank. Minutes of
each meeting have been submitted to Bangladesh Bank on
a quarterly basis;
Communicated with the Ministry of Finance as well as
Bangladesh Bank, prepared papers and submitted to them
as per their instructions to receive the recapitalization
fund from the Government of The People’s Republic of
Bangladesh;
Committee instructed to take proper steps for reducing
the gap between Risk Sensitive Assets and Risk Sensitive
Liabilities;
Rupali Bank Limited
Committee advised that proper collateral securities will
have to be taken against every loan and force sale value will
have to be reported correctly;
New corporate loans must be evaluated properly before
disbursement, and unrated loan accounts should be rated;
To reduce NPLs and achieve monitoring of new loans from
being classified and maintained due diligence regarding
new clients. Bilateral discussion with defaulted borrowers
is also held by the directors of the Risk Management
Committee. The Committee offers valuable guidelines
to borrowers, which play a vital role in the recovery of
defaulted loans; and
Risk Management Committee at management level is
formed to review risk profile of the Bank regularly to ensure
effectiveness of internal control systems and computation
of adequate capital.
Future Plan of Risk Management Division, 2020:
To ensure implementation of Basel-III;
To ensure implementation of Core Risks Management
Guideline across the Bank with a view to managing risks as
well as enhancing profitability;
To prepare Internal Capital Adequacy Assessment Process
(ICAAP) for the Bank;
To create awareness among the officers of the Bank
regarding Core Risks & ICAAP;
To co-ordinate with the respective divisions for complying
with risk management issues of MOU-2020;
To formulate an Action Plan to upgrade RBL’s resilience,
CAMELS Rating, Core Risk Management rating as well as the
Bank’s own credit rating, in line with the instructions of the
senior management; and
To develop a separate Basel unit for implementing Basel
Accord.
Acknowledgements
The Board Risk Management Committee expresses its sincere
thanks and gratitude to the respected members of the Board,
management and authorities and Bangladesh Bank for their
excellent support. The Bank is performing its due role as per
Bangladesh Bank’s guidelines. Special thanks is also conveyed
to officials who are directly dealing with the risk management of
the Bank and prepare the documents on Risk Management and
Control Environment and Market disclosures under Pillar III of
Basel III for the year 2019.
For and on behalf of the Board Risk Management Committee,
Mohammad Delwar Hossain
Chairman, Risk Management Committee
Annual Report 2019 145
REPORT ON RISK MANAGEMENT
AND CONTROL ENVIRONMENT
At Rupali Bank Ltd, our robust risk management framework
enables a consistent approach to the identification,
management and oversight of risks. This consistency and
materiality is valuable as it allows us to embrace a more
holistic approach to risk management and to make meaningful
comparisons of the risks we face and how we manage them
across our operational footprint, which is essential to achieve
our strategic objectives.
At our Bank, identifying our key risk formations leveraging our
trusted risk management framework, all our divisions and units
identify the risks that could affect their strategy and operations
in order to implement effective risk mitigation plans. These
risks are then aggregated into a consolidated view and
presented to our senior leadership, who add their own input
on strategic, functional and emerging risks. Thereafter, we
comprehensively frame which emerging risks warrant being
added to our risk watch list and monitored for their impact on
the organisation.
Further, we evaluate the completeness of our risk landscape
by benchmarking against comparable companies in our peer
group.
Managing our risks
At our Bank, principal risk groups are assigned dedicated
ownership, which is accountable for setting the target tolerance
levels. The owners are responsible for confirming that adequate
controls are in place and that the necessary action plans are
being implemented to bring the risk profile within acceptable
levels. To provide robust risk oversight, we report throughout
the year on principal and emerging risks, developing severe but
plausible scenarios for all risks. These scenarios provide insights
into possible threats, thereby allowing us to react and adjust our
strategy accordingly.
Sound Risk Management Systems at Rupali Bank Ltd:
To build a sound risk management culture, improve risk
management techniques and build a successful risk
management function leading to successful outcomes even in
stress-prone business conditions, the risk management policies
of our Bank has been outlined, encompassing the following key
elements:
a. Risk management framework comprising of Board and
senior management;
b. Organizational policies and procedures have been
developed, risk limits determined and implemented to
manage business operations effectively and efficiently;
c. Adequate risk identification, measurement, monitoring,
control and management information systems are in place
to support all business operations; and
d. Established internal control and the performance of
comprehensive audit are in place to detect any deficiencies
in the internal control environment.
146
Role of Directors, Board Risk Management Committee
(BRMC), Executive Risk Management Committee
(ERMC), Chief Risk Officer (CRO), Risk Management
Division/Department (RMD)
Role of Board of Directors:
Rupali Bank’s Board gives utmost thrust and importance to
sound risk management practices. They undertake every
possible initiative to keep various risks (credit, market, liquidity
and operational risks, etc.) within tolerable levels. For this
purpose, the Board fulfills the following roles:
Establishing organizational structure for enterprise
risk management within the bank and ensuring that
top management as well as staffs responsible for risk
management possess sound expertise and knowledge to
accomplish the risk management function properly;
Assigning sufficient authority and responsibility to risk
management related officials;
Ensuring uninterrupted information flow to RMD for sound
risk management;
Continuously monitoring the Bank’s performance and the
overall risk profile through reviewing various reports;
Ensuring the formulation, review (at least annually)
and implementation of appropriate policies, plans and
procedures for risk management;
Defining and reviewing the risk appetite, risk tolerance,
limits, etc., in line with strategic planning;
Ensuring maintenance of adequate capital and provisions
to absorb losses resulting from risk;
Ensuring that internal audit reviews the credit operations,
foreign exchange operations and securities portfolio
management functions, etc., to assess the effectiveness of
the internal control system; and
Monitoring the function of Board Risk Management
Committee.
Role of Board Risk Management Committee (BRMC) in
addition to but not excluding the role defined in the related
BRPD circular:
Formulating and reviewing (at least annually) risk
management policies and strategies for sound risk
management;
Monitoring implementation of risk management policies
and processes to ensure effective prevention and control
measures;
Ensuring construction of adequate organizational structure
for managing risks within the Bank;
Supervising the activities of the Executive Risk Management
Committee (ERMC);
Ensuring compliance of Bangladesh Bank instructions
regarding implementation of core risk management;

Ensuring formulation and review of risk appetite, limits and
recommending these to Board of Directors for their review
and approval;
Approving adequate record keeping and reporting systems
and ensuring their proper use;
Holding at least four meetings in a year (preferably one
meeting in every quarter) and more, if deemed necessary;
Analyzing all existing and probable risk scenarios, taking
appropriate decisions for risk mitigation, incorporating the
same in the meeting minutes and ensuring follow up of the
decisions for proper implementation;
Submitting proposal, suggestions and summary of BRMC
meetings to the Board of Directors at least on a quarterly
basis;
Complying with instructions issued from time to time by
the regulatory body;
Ensuring appropriate knowledge, experience, and
expertise of lower-level managers and staff involved in risk
management;
Ensuring sufficient and efficient staffing for RMD;
Establishing standards of ethics and integrity for staff and
enforcing these standards; and
Assessing overall effectiveness of risk management
functions on a yearly basis. Banks are encouraged to
preserve video recording of the BRMC meetings for
verification by Bangladesh Bank (DOS) officials involved
in monitoring risk management activities. The team may
meet BRMC and ERMC members of the Bank from time to
time to get a closer perspective of risk management culture
and practices.
Role of Executive Risk Management Committee (ERMC):
The Bank shall form ERMC constituting CRO (as the Chairman),
Head of ICC, CRM/CAD, Treasury, AML, ICT, ID, Operation,
Business, Finance, Recovery and Head of any other department
related to risk, if deemed necessary. RMD will act as Secretariat
of the Committee. The ERMC, from time to time, may invite top
management (CEO, DMD, Country Heads or senior executives),
to attend the meetings so that they are well aware of risk
management processes. The responsibilities/ terms of reference
of ERMC will include, but not be limited to:
Identifying, measuring and managing the Bank’s existing
and potential risks through detailed risk analysis;
Holding meeting at least once in a month based on the
findings of risk reports and taking appropriate decisions to
minimize/control risks;
Ensuring incorporation of all the decisions in the meeting
minutes with proper dissemination of responsibilities to
concerned divisions/departments;
Minimizing/controlling risks through ensuring proper
implementation of the decisions;
Reviewing risks involved in new products and activities and
ensuring that the risks can be measured, monitored, and
controlled adequately;
Submitting proposals, suggestions and summary of ERMC
meetings to CEO, BRMC on a regular basis;
Implementing the decisions of BRMC and Board meetings
regarding risk issues;
Rupali Bank Limited
Assessing requirement of adequate capital in line with
the risk exposures and ensuring maintenance of the same
through engaging senior management and the Board;
Determining risk appetite and limits in line with strategic
planning through detailed discussions among the
members;
Contributing to formulation of risk policies for business
units;
Handling “critical risks” (risks that require follow-up and
further reporting);
Following up reviews and reports from Bangladesh Bank
and informing BRMC the issues affecting the Bank’s
operations; and
Ensuring arrangement of Annual Risk Conference.
Role of Chief Risk Officer (CRO):
To bring better transparency, synergy and prudence into risk
management structure and practices at the Bank, the role and
responsibilities of the CRO is of paramount significance. The
CRO leading the independent risk management department has
sufficient stature, authority and seniority. He/she also has direct
access to the Board and directly reports to the Board or its Risk
Management Committee. He/she is directly supervised by the
Board Risk Management Committee (BRMC). The CRO should
not have any reporting relationships with business verticals of
the Bank and should not be given any business targets. The
CRO shall provide all the key risk issues prevailing in the Bank
to BRMC meetings and a copy to the CEO for acknowledgement.
The CRO must have access to any information necessary for
performing his/her duties. In this context, the Board and CEO/
MD provides full support to him/her.
The CRO of the Bank shall undertake the following
responsibilities, but not limited to, in order to ensure
transparency in managing risks at all levels:
To oversee the development and implementation of the
bank’s risk management functions as a primary role;
To support the Board of Directors/Board’s Risk
Management Committee in its development of the bank’s
risk appetite and for translating the risk appetite into a risk
limits structure;
To actively engage with the management in the process of
setting risk appetite and limits for the various business lines
with a view to achieve bank’s overall strategic planning and
monitoring their performance relative to risk-taking and
limit adherence;
To contribute and participate in key decision-making
processes (i.e. strategic planning, capital and liquidity
planning, new products and services, compensation
design and operation);
To manage the implementation of all aspects of the risk
function, including implementation of processes, tools and
systems to identify, measure, manage, monitor and report
risks;
To assist in the development of and manage processes to
identify and evaluate business risks and control them;
To manage the process for developing risk management
policies and procedures, risk limits and approval
authorities;
Annual Report 2019 147
 To monitor major and critical risk issues independently
with full empowerment;
To communicate views of the board and senior
management throughout the bank;
To adopt proper financial protection measures through risk
transfer, risk avoidance, and risk retention programs;
To provide opinion regarding extent of risk in case of credit
proposal for big amounts (to be set by the bank) before
submission to EC/board for sanctioning;
To monitor portfolio health and ensure good quality asset
growth;
To ensure proper compliance of BB’s recommendations
regarding risk issues including all core risks;
To provide a methodology to identify and analyze the
financial impact of loss to the organization, employees, the
public, and the environment;
To disseminate information and strategies to personnel
regarding emerging risk issues and industry specific risks;
To implement environmental and social (E&S) safeguard
for the asset portfolio;
To oversee the information security aspects for the bank;
To ensure arrangement of ERMC meeting on monthly basis
wherein top management team shall address, discuss and
resolve risk issues across the bank;
Organogram of Risk Management at RBL
Managing Director
Deputy Managing Director
(Chief Risk Officer)
General Manager
Head of RM Division
Core Risk Management Basel III
Monitoring Reporting
Role of Risk Management Division/Department (RMD)
The RMD needs to manage and measure risks on the basis of
the Bank’s approved risk parameters independently, in line with
regulatory requirements. The role of RMD includes, but is not
limited to, the following:
Collecting and analyzing data/information for identifying
risks and making appropriate recommendations for risk
mitigation;
Preparing risk management reports, arranging monthly
148
To ensure proper disclosure of key performance indicators
of the bank via Pillar III of Basel III accords;
To remain aligned and acquainted with other countries’
economic and financial positions;
To organize Annual Risk Conference (at-least one day-long)
with the participation of all the branch managers and
deputy branch managers including the officials related to
risk issues; and
Ensuring adequate internal and external training on risk
management issues for increasing efficiency of RMD
officials.
It is to be mentioned that CRO should not be given dual
responsibility, more specifically the responsibility of Chief
Operating Officer, Chief Financial Officer, Chief of Internal Audit
function or any other function.
Risk Management Division (RMD)
The Risk Management Division (RMD) in a commercial bank
plays a vital role in managing and mitigating risk by critical
risk assessment and management as well as through regular
monitoring. According to Bangladesh Bank directives, the
RMD of RBL has been formed with the vision to establish
a comprehensive risk management process and to ensure
continuous sound banking practices. The main objective of
RMD is to prevent the Bank from taking risk beyond its tolerance
levels.
Stress Coordination, Analysis
Testing & Reporting
meeting of ERMC and preparing meeting minutes,
disseminating the decisions to the concerned department/
divisions, monitoring and follow up of implementation
status;
Ensuring timely submission of risk management reports,
meeting minutes, compliance report and other documents
to BB;
Assisting BRMC/ERMC by providing risk issues that are
needed to be addressed;
Designing bank’s overall risk management strategy;
 Rupali Bank Limited

Ensuring significant contribution in establishing 1) Mr. Mohammad Delwar Hossain, Chairman

sophisticated risk management infrastructure with a
2) Mr. Arijit Chowdhury, Director
sufficiently robust data-base, data architecture and
information technology; 3) Mr. A. K. M. Delwer Hussain, FCMA, Director
Conducting, developing and overseeing stress testing 4) Mr. Md. Rizwanul Huda, Director
activity; 5) Mr. Md. Khalilur Rahman, Director
Utilizing the Stress Test result and scenario analysis to b. Executive Risk Management Committee (ERMC)
better understand potential risk exposures under a variety
of adverse circumstances; The following chart provides a schematic overview of the Risk
Developing and testing different models (such as VaR, HHI Management Committee at the management level of Rupali
index, Collection scoring, Vintage curve etc.), and observe Bank.
their use for measuring and monitoring risks;
Sl. Status in the
Assisting senior management in formulating strategic Designation
No. Committee
planning considering bank’s risk exposures and industry as
Deputy Managing Director-2 & Chief
a whole; 1. Chairman
Risk Officer
Supporting the board, BRMC and ERMC in formulation, 2. Deputy Managing Director-1 Member
review and approval of the enterprise- wide risk governance
3. Deputy Managing Director-3 Member
framework which includes the bank’s risk culture, risk
appetite, risk limits, and MAT; 4. General Manager, AML & CTF Member
Monitoring on ongoing basis the risk-taking activities and 5. General Manager, ICD Member
risk exposures in line with the board approved risk appetite, 6. General Manager, ICC Member
risk limit and corresponding capital or liquidity needs (i.e. 7. Chief Financial Officer Member
capital planning); 8. General Manager, ICT (System) Member
Taking initiatives for interim review of risk appetites on 9. General Manager, ID Member
request of other related departments and informing the
10. General Manager , SME Member
board of directors and BRMC time to time about the status
of risk exposures as compared to appetite; 11. Recovery Specialist / DGM, Recovery Member
12. Deputy General Manager, ICD Member
Establishing an early warning or trigger system for breaches
of the bank’s risk appetite or limits; 13. Deputy General Manager, SME Member
Communicating views of the board and senior management 14. Deputy General Manager, FAD Member
throughout the bank; 15. Deputy General Manager, Treasury Member
Taking initiatives for establishing enterprise/comprehensive Member
16. Deputy General Manager, RMD
risk management policies and procedures with the Secretary
approval of the Board;
Fig: Structure of risk management committees at management level at
Monitoring concerned departments in formulating RBL
and reviewing related risk management policies and
procedures; The Deputy Managing Director has been entrusted with the
responsibility of the Chief Risk Officer (CRO) of RBL. The CRO is
Monitoring compliance of irregularities found in core risk
accountable for the overall risk management function.
inspection reports of BB;
Adopting proper financial protection measures through Six Core Risk Groups in a bank:
risk transfer, risk avoidance, and risk retention programs;
and 1. Credit Risk

Taking appropriate steps to control or mitigate risk 2. Asset Liability Risk

exposures and ensure reporting the same to senior 3. Foreign Exchange Risk
management and BRMC.
4. Money Laundering Risk
RMD of the Bank is encouraged to prepare a comparative
5. Internal Control & Compliance Risk
analysis report on the Bank’s gain/loss due to/lack of proper risk
management activities and its impact on capital and dispatch 6. Information & Communication Technology Risk
the same to the senior management and the Board of the Bank
and DOS of Bangladesh Bank on a yearly basis. Core Risk Management Committees of Rupali Bank Ltd.:

Regulatory risk management committee:
a. Board Risk Management Committee (BRMC)
Board Risk Management Committee of Rupali Bank Limited was
formed as per the Bank Company Act 1991 (Amended 2013) and
BRPD Circular 11 dated 27 October 2013. Members of the current
Board Risk Management Committee are as follows:
Rupali Bank has six core risk management committees related
to each core risk. As per core risk management guideline of
Bangladesh Bank, six core risk management guideline have
been formulated by RBL. The main objective of the core
risk management committee is to implement the core risk
management guideline. Meetings are conducted periodically
by the risk management committee. The six risk management
committees are as follows:

Annual Report 2019 149

a) Credit Risk Management Committee
Credit risk management committee is concerned regarding the
issues like credit concentration, Non-performing loan, provision,
asset quality, Collateral, Credit Rating, documentation etc.
b) Asset Liability Committee (ALCO)
As per asset liability risk management guideline, RBL has
formed ALCO. Decisions regarding asset-liability risk, liquidity
risk, investment, market risk, deposit mix, interest rate, asset-
liability mismatch etc are analyzed in the ALCO meeting.
c) Foreign Exchange Risk Management Committee
Foreign exchange risk management committee of RBL works
as per foreign exchange risk management guideline. This
committee is concerned regarding foreign exchange risk,
import, export etc.
d) Money Laundering Risk Management Committee
f) Information & Communication Technology Risk
Management Committee
Information and communication technology related risk like-
data security, physical security, disaster recovery, network
security business continuity are looked after by this committee.
Implementation of Basel III Framework by Rupali
Bank Ltd.:
The Basel Accord is the cornerstone of international risk-
based banking regulation introduced by the Basel Committee
on banking supervision. Basel-III is a banking risk and capital
management framework dealing with three distinct areas
commonly known as pillars, where-
Pillar-1: Minimum capital requirement
Pillar-2: Supervisory review process
Pillar-3: Market discipline through disclosure of material
information

Money laundering risk management committee oversees
money laundering activities of RBL including CTR, STR, KYC and
TP. Statement is collected from all the branches and periodically
meeting is organized on findings of statement.
e) Internal Control and Compliance Risk Management
Committee
Internal control and compliance risk management guideline is
formulated as per instructions of Bangladesh Bank. Setting rules
for bank, compliance regulatory requirement, checking internal
system, fraud, forgeries etc are supervised by this committee.
RBL started to implement revised regulatory capital framework
“Risk Based Capital Adequacy for Banks” from January 2009.
Regular reporting is ensured by Risk Management Division (RMD)
to the Department of Offsite Supervision (DOS) of Bangladesh
Bank by the end of each quarter.
Pillar-1: Maintaining Minimum Capital Requirement
(MCR) by RBL
The first pillar deals with maintenance of regulatory capital
calculated for three major components of risk that a bank faces:
Credit risk, Operational risk and Market risk. Other risks are not
considered fully quantifiable at this stage.

Comparative scenario of Minimum Capital Requirement (MCR) as per Risk Based Capital Adequacy Statement (Basel-III) is as follows:
Fig in Tk. crore
Regulatory Capital December 2019 December 2018
Common Equity Tier-1 Capital 1,397.91 1,344.14
Additional Tier-1 Capital 0.00 0.00
Tier – 1 Capital 1,397.91 1,344.14
Tier – 2 Capital 1,167.23 870.82
Total Regulatory Capital 2,565.14 2,214.96

Total Risk Weighted Assets (RWA) 24817.64 22104.71

Capital to Risk Weighted Assets Ratio (CRAR) 10.34% 10.02%
Tier-1 capital to RWA 5.63% 6.08%
Tier-2 capital to RWA 4.70% 3.94%
Minimum Capital Requirement (MCR) 10% of RWA 2481.76 2210.47

Capital Surplus/(Shortfall) 83.38 4.49

MCR (With Capital Conservation Buffer) 3102.20 2624.93
Capital Surplus/(Shortfall)(With Capital Conservation Buffer) (537.06) (409.97)

150
 Rupali Bank Limited

Comparative scenario of Risk Weighted Assets as per Statement of Risk based Capital Adequacy Basel-III) is as follows:
Fig in Tk. crore
Risk Weighted Assets (RWA) for December 2019 December 2018
Credit Risk 20,274.79 17,431.55
Market Risk 505.10 1,545.79
Operational Risk 4,037.75 3,127.37
Total RWA 24,817.64 22,104.71

Credit Risk

For credit risk mitigation, loan provided against financial securities and rating of some large borrowers has been used. Rating of some
other large borrowers is on the process. Capital requirement can be reduced if some good large borrowers are rated.

Some comparative scenarios of Loans and Advances are as follows:

Sector-wise loans Fig in Tk. crore

December 2019 December 2018

Particulars
UC CL UC CL
Government 0.00 36.55 0.00 36.55
Other Public 1,220.92 12.75 1128.51 12.75
Private 24,836.91 4,565.28 19,191.71 4,379.55
Total Loan 26,057.83 4,614.58 20,320.21 4,428.85

Risk Weighted Asset & Capital Charge for Credit Risk as per Basel-III Accord Fig in Tk. crore

Risk Weighted Asset for Credit December 2019 December 2018

Risk RWA Amount Capital Charge RWA Amount Capital Charge
On-Balance Sheet 20,199.03 2,019.90 17,386.50 1,738.65
Off-Balance Sheet 75.76 7.58 45.05 4.51
Total RWA for Credit Risk 20,274.79 2,027.48 17,431.55 1,743.16

Market Risk

Market risk is defined as the risk of losses in on and off-balance sheet positions arising from movements in market prices i.e. interest rate
and equities in the trading book; commodity price and foreign exchange position (both in the banking and trading book).

Comparative Position of Capital Charges for Market Risk Fig in Tk. crore

Details Dec. 2019 Dec. 2018

Interest Rate Related Instrument 12.94 19.49
Equities 33.54 33.54
Foreign Exchange Position 4.03 101.55
Commodities 0.00 0.00
Total 50.51 154.58

Interest Rate Risk

Interest rate risk in trading book can be general and specific risk based on its effect. To minimize general interest rate risk, RBL emphasizes
investment in government treasury bonds and quality financial instruments, which are less volatile in nature.

Annual Report 2019 151

Investment in interest Rate Related Instrument: Fig in Tk. crore

Particulars December 2019 December 2018

Govt. T. Bill & Bond 4,993.95 2,412.51
Held to Maturity
Private Bond 3,001.00 2,584.00
Govt. T. Bill & Bond 1,340.46 2,114.21
Held for Trading
Private Bond 0.00 0.00

D.1.2.2 Equity Price Risk

Equity risk is defined as losses due to change in market price of equity held. To measure and identify the risk mark to market valuation of
the share investment portfolios are done. To minimize equity price risk diversification is enforced as per bank’s own policy.

Statement of Share Position Fig in Tk. crore

December 2019 December 2018

Particulars
Cost Price Market Value Cost Price Market Value
Unquoted Shares 679.38 679.38 561.85 561.85
Quoted Shares 167.68 254.30 167.68 344.18

Foreign Exchange Risk

As per Basel-III the risk weighted amount for foreign exchange risk is the 100% of open short or long position whichever is higher. Capital
requirement can be reduced by keeping net open position of foreign exchange at a possible minimum level.

Measuring Bank Exposure to Foreign Exchange Risk as on 31 December 2019

Net Long (+)/ Short(-)

Amount Taka Equivalent
Exchange Rate position in USD
(in mn) (in crore)
equivalent (mn)
US Dollar USD 0.8307 1.0000 0.8307 7.0253
Japanese Yen JPY 30.5822 109.1900 0.2801 2.3688
Pound Sterling GBP 2.4693 1.3113 3.2380 27.3856
Euro EUR -0.0423 1.1196 -0.0474 -0.4006
Other Currencies 0.4215 1.0000 0.4215 3.5649
Sum of the net long position 4.7703 40.3447
Sum of the net short position -0.0474 -0.4006
SWAP balance 0.0000
Overall net position* 4.7229 39.9441
Risk weight
Capital charge for foreign exchange exposure 
*The overall net position shall be greater one of the absolute value of the sum of net long or the sum of short position
Current spot market exchange rate in Tk = 84.575 per US $

Operational Risk
Operational risk is the potential for incurring losses in relation
to employees, contractual specifications and documentation,
technology, infrastructure failure and disasters, external influences
and customer relationships. This definition includes legal and
regulatory risk, but excludes business and reputation risk.
The bank uses the basic indicator approach (BIA) to calculate
its operational risk. Under BIA, the capital charge for
operational risk is a fixed percentage, denoted by α (alpha) of
average positive annual gross income of the bank over the past
three years. Capital Charge for Operational Risk is determined
in following way:

Year 2018 2017 2016 Capital Charge 15%

Gross Income 3076.33 2888.30 2110.87 403.78

152

To reduce operational risks, RBL emphasizes on human
resource development and proper distribution of resources
to ensure placement of the right person in the right role. RBL
has provided diverse training opportunities to employees
through different training institutions, including Rupali Bank
Training Academy. Information on external events occurring in
the banking industry is systematically utilized to ensure that
similar incidents will not happen to RBL.
The Audit and Inspection Division makes a year wise risk based
audit plan to carry out comprehensive audits and inspections
of the banking operations in approved procedures. To manage
operational risk in the best way, intensive compliance and
follow up is very important.
Pillar-2: Supervisory Review Process
The key principle of the Supervisory Review Process (SRP) as
per Bangladesh Bank Guidelines is that “banks have a process
for assessing overall capital adequacy in relation to their
risk profile and a strategy for maintaining their capital at an
adequate level”.
As per BB instructions RBL has formulated its process
document. RBL has an exclusive body called SRP team where
RMD is an integral part. RMD under direct supervision of
SRP team of RBL prepared ICAAP (Internal Capital Adequacy
Assessment Process) for assessing the bank’s overall risk
profile and a strategy for maintaining adequate capital. RBL
has a capital plan to raise its capital against risks to fulfill
Bangladesh Bank’s requirement.
Risk mitigation methodology:
Core risks management guidelines have been formulated in
RBL for sound and prudent operation of the bank as well as for
compliance with Bangladesh Bank’s instructions. The activities
to update the guidelines consecutively are under process.
There are separate risk management committees for each core
risk in related division.
The vital and first step of risk mitigation is the identification,
analysis and measurement of risks. To do so a Risk Management
Report is prepared on monthly and half yearly basis covering
all potential key risks in banking. The Risk Management
Committee discusses on the report in its monthly meeting,
identifies the risks and is given direction to mitigate them.
Different steps have already been taken to improve the rating
like workshop on core risks management, assessing the bank’s
position against Bangladesh Bank’s inspection checklist and
establishing separate Treasury Division. Several meetings with
six core risk management committees were convened by RBL’s
Managing Director & CEO for ensuring proper implementation
of guidelines and upgrading of the rating of core risks
management. Thus implementation of risk management has
improved in several aspects.
Credit Risk Management
Credit risk is one of the prime risks of a bank. It indicates the
potential loss arising from contractual failure of the borrower
with the bank. The failure may be resulted from unwillingness
of the borrower or due to decline of the financial conditions.
Credit risk also refers the risk of negative effects on the financial
Rupali Bank Limited
result and capital of the bank caused by borrower’s default on
its obligations to the bank.
RBL emphasizes to manage credit risk in the entire range
as well as the risk in individual credits or transactions. The
effective management of credit risk is a critical component of a
comprehensive approach to risk management and essential to
the long-term success of RBL.
On the basis of Bangladesh Bank’s credit risk management
policies, a manual of Credit Risk Management (CRM) has been
formulated and approved by RBL’s Board of Directors. The
organizational structure of RBL’s Head Office level has been
designed in line with CRM Guidelines.
The duties of the executives & officers working in the credit
areas like credit approval, administration, monitoring
and recovery functions, have been segregated for smooth
functioning.
Prior Approval of CRM Activities at RBL
The following principles underpin RBL’s approach to credit risk
management:
Client due diligence, which is aligned with our country and
industry portfolio strategies also emphasizes on the size
and type, purpose, structure (terms, conditions, repayment
schedules and interest rates) and securities of the loan
proposed;
Prevent undue concentration and large unexpected losses
by ensuring a diversified and marketable credit portfolio;
Assess and manage client, industry and product-specific
concentrations actively against RBL’s risk appetite;
Initiate and review the assessment process periodically at
branch/credit division which is placed before Management
Credit Committee (MCC) or Board for approval. The process
includes borrower analysis, industrial analysis, historical
financial analysis, repayment sources analysis, mitigating
factors etc;
Rigorously follow the conditions of Bangladesh Bank to set
up single borrower exposure limit which is 15% (funded
and non-funded, funded will not exceed 10%) of the Bank’s
consolidated capital;
Any credit approval is subject to the banking regulations in
force or to be imposed by the regulatory body and to the
changes in the banking policy. Data collection check list
and limit utilization form are being prepared for regular
assessment; and
Credit risk grading (CRG) system has been adopted by
RBL as per Bangladesh Bank’s instructions. The system
defines the risk profile of borrowers to ensure that account
management, structure and pricing are commensurate
with the risk involved.
RBL also follows Bangladesh Bank’s guidelines regarding CIB
reporting, provisioning, write-off of bad and doubtful debts
and suspension of interest.
Annual Report 2019 153
Total Loans and Advances of RBL Fig in Tk. crore

Particulars December 2019 December 2018

Total Loans & Advances 30,672.40 24,749.06
Classified amount (opening) 4,428.85 4,582.06
Addition during the year 858.02 914.43
Less: Cash recovery during the year (83.62) (215.90)
Less: Adjustment during the year (588.69) (851.73)
Classified amount (closing) 4,614.57 4,428.85
% of classified loans 16.15% 19.21%

Credit Concentration by Region (Division) Fig in Tk. crore

December 2019 December 2018

Region
Amount % of Total Amount % of Total
Dhaka 19,547.57 63.73% 15,652.44 63.24%
Chattogram 2,901.57 9.46% 2,171.07 8.77%
Khulna 3,837.86 12.51% 3,256.14 13.16%
Sylhet 266.27 0.87% 237.95 0.96%
Rajshahi 801.22 2.61% 597.34 2.41%
Rangpur 1,193.99 3.89% 976.75 3.95%
Barishal 917.41 2.99% 786.08 3.18%
Cumilla 421.96 1.38% 370.27 1.50%
Mymensingh 784.55 2.56% 701.02 2.83%
Total 30,672.40 100% 24,749.06 100%

To mitigate credit risks, RBL follows all regulatory guidelines. As
per credit risk management guideline of RBL, credit division is
divided as Credit Approval, Credit Administration and Recovery
division. Approval authority approves the loan then credit
administration division confirms proper documentation. If loans
become classified then recovery division monitors and takes
initiatives to recover the loan.
Asset Liability Risk Management
Asset and liability management (ALM) is one of the key
essentials of managing a bank’s balance sheet efficiently. The
main objectives of ALM are to manage balance sheet risk i.e.
liquidity risk & interest rate risk and to maintain adequate
capital.
RBL has its own guideline for asset liability management which is
approved by RBL’s Board of Directors. Considering all risk factors
the bank has established an effective ALM process for assessing,
analyzing and reviewing various kinds of risk exposures arising
from composition and dynamics of the balance sheet. Asset
Liability Committee (ALCO) of RBL regularly reviews these risk
exposures in the following manner:
i) Setting tolerance for cumulative cash flow mismatches
(maximum cumulative outflow limit 20% of balance
sheet assets)
ii) Setting limit on loan to deposit ratio 85.00%
iii) Setting limit on dependence on institutional deposits
that are volatile in nature
ALCO also monitors the rate sensitive assets and liabilities
of the bank.
The ALM desk plays vital role in managing liquidity, interest
sensitive assets and interest sensitive liabilities. ALCO paper
is the main support for ALCO meeting in taking decision. This
paper is prepared by the ALM desk. At RBL, ALCO paper contains
all the information regarding liquidity based on historical
requirements, current liquidity position, anticipated future
funding requirement, sources of fund and options for reducing
funding needs, present and anticipated asset quality, present
and future earning capacity along with capital position. Thus all
the decisions are made based on practical scenario.
RBL has established a separate Treasury Division to strengthen
its asset liability management, implement the Asset Liability
Manual of RBL as well as managing risk proactively.

It advises for both the opportunities and threats to its
liquidity and balance sheet positions as well as positions of
maturing assets and liquidity contingency plan.
It monitors the liquidity management of treasury by:
Liquidity Position
RBL maintains its regulatory requirement of SLR and CRR.
Liquidity position of RBL is comparatively better in 2019 than
2018.

154
 Rupali Bank Limited

Maintaining Statutory Liquidity Fig in Tk. crore

Particulars December 2019 December 2018

Required 2,234.72 1,917.26
Cash Reserve Requirement
Maintained 2,298.20 2,078.13
Required 5,282.06 4,531.69
Rest of Statutory Liquidity Ratio Maintained 6,700.69 4,889.04
Excess 1,418.63 357.35

LCR & NSFR

Particulars December 2019 December 2018

LCR 154.52% 423.22%
NSFR 94.92% 102.24%

Lending and Borrowing from Call Money Market Fig in Tk. crore

Particulars December 2019 December 2018

Lending - 524.00
Borrowing 481.00 -

As per the structural liquidity profile of RBL, Medium Term Funding Ratio (MTF) and Maximum Cumulative Outflow (MCO) as on December
2019

Particulars December 2019 Ideal Scenario

MTF Ratio 49.00% 45%
MCO 18.62% 19%
Loan Deposit Ratio 73.98% 85.00%

Interest Rate Risk

According to Duration Gap Analysis, the fall in market value of equity due to 1% change in interest rates for 31 December 2019 is Tk.82.16 crore.
Interest Earning Assets Fig in Tk. crore

Particulars December 2019 December 2018

Balance with other Banks & FIs 2,086.00 6,400.00
Investments 10,364.61 8,233.64
Money at Call & Short Notice 0.00 524.00
Loans and Advances 26,057.83 20,320.21
Total 38,508.44 35,477.85

Interest Bearing Liabilities Fig in Tk. crore

Particulars December 2019 December 2018

Borrowings 1,162.45 691.33
Deposits and Other A/Cs 38,553.28 34,568.07
Total 39,715.73 35,259.40

Ne t Inte re st Income : Fig in Tk. crore

Particulars December 2019 December 2018

Total Interest Income 1,872.34 1,782.80
Total Interest Expense 1,870.46 1,530.06
Net Interest Income 1.88 252.74

Annual Report 2019 155

Foreign Exchange Risk Management
Foreign Exchange risk is the risk of declines in cash flows and
asset values of a bank due to change in exchange rate. The
responsibility of Foreign Exchange Risk Management of RBL is
on the Foreign Trade Finance & International Division.
In compliance with the Bangladesh Bank guidelines, RBL has
prepared Foreign Exchange Risk Management Manual. Treasury
Front Office, Back Office and Mid Office have been established
and are functioning through an independent organizational
chain in accordance with the terms and conditions of the
manual.
The dealers of the bank are responsible for risk management of
its overall balance sheet and managing the capital. It is a highly
responsible function where the best possible decisions are
expected to be made in split-second to determine the extent of
risk in this area.

Advises treasury of Dealer strikes

accurate position a deal

Enters deal into

blotter, raises
deal ticket,
Reconciles sends ticket to
Exchange Process flow treasury back
Position office
chart of
dealing in RBL

Treasury back
office contacts
deal confirmations
Settles the
with counterparty
deal

Passes all required

entries

These limits includes intra-day limit, monthly stop loss limit,
intra-day stop loss limit, overnight holding limit and counter
party limit. To facilitate the treasury functions, individual limits
for the dealers and limit for dealing room have been fixed up.
Money Laundering Risk Management
RBL has its own guideline, approved by the Board of Directors,
for prevention of money laundering in line with Anti Money
Laundering (AML) Law and Bangladesh Bank guidelines. Anti
Money Laundering Division of RBL is responsible for Money
Laundering Risk Management of RBL.
RBL has a Central Compliance Unit (CCU) headed by the
Chief Anti Money Laundering Compliance Officer and Money
Laundering Prevention Committee (MLPC) headed by CAMLCO
to supervise the overall AML and CFT activities.

156

Each branch of RBL has an Anti Money Laundering
Compliance Officer (BAMLCO) who is responsible for
compliance of Bangladesh Bank instructions relating to
AML/CFT (Anti Money Laundering/ Combating financing of
Terrorism) activities in the branch. Risk is identified by the
branch through analyzing the KYC (know your customer) and
TP (transaction profile). CTR (cash transaction report) is sent
to the Head Office on monthly basis for cash transaction of
10 (ten) lac or above in a day (w.e.f. August, 2012). All these
reports are sent to Bangladesh Bank through special software
within 21st of every month.
Internal control structure of ICC
Managing
Director
Head of
Internal
Control &
Compliance
Head of Head of Audit
Monitoring & Inspection
The functions of three divisions of ICC (Monitoring, Audit
& Inspection and Compliance) are to manage the cross
divisional and cross regional operational risk as well as risk
concentrations at branch level. These divisions ensure a
consistent application of the operational risk management
strategy across the bank.
Audit & Inspection division performs risk-oriented reviews
of the design and operating effectiveness of RBL’s system of
internal controls. Internal audit is conducted at periodical
interval to ensure compliance of the policies of the bank and
regulatory bodies.
The following activities are undertaken to ensure
comprehensive internal control and compliance at RBL:
Rupali Bank Limited
When any unusual/suspicious transaction occurs it is reported
as STR (suspicious transaction report) to CCU (Central
Compliance Unit). CCU examines the report properly and sends
to Bangladesh Bank with comments of the CAMLCO if it is
reportable.
Internal Control and Compliance Risk Management
Internal control structure and system are very essential to
the capital assessment process. The process includes an
independent review and, where appropriate, the involvement of
internal or external audits. RBL has its own ICC manual.
Board of
Directors
Head of
Compliance
Risk based Departmental Control Function Checklist
(DCFCL), representing a risk verification checklist has been
introduced to declare the status of performance of the
branches;
Self-assessment of anti-fraud internal control checklist has
been introduced to assess the performance of RBL;
ICC unit in each workstations of RBL to ensure control and
compliance is under process;
Management Reporting System (MRS) Committee has been
constituted with a General Manager as its head; and
Health report of the Bank is prepared annually and placed
to the Audit Committee as well as to the Board of Directors.
Annual Report 2019 157
Information Communication Technology (ICT) Risk Management Committee Meeting at management level as
Management per guideline of Bangladesh Bank.

RBL’s IT policy has been prepared in line with the ICT
Guidelines of Bangladesh Bank. Physical security of RBL
ensures environmental safeguards as well as controlling
physical access to equipment and data depending on IT set up.
The risk management of physical security involves three tiers:
Tier-1 for data centre including disaster recovery site, Tier-2
for server room and Tier-3 for standalone computers or ATM.
Information security measures is applicable to all functional
tiers, include password control, user ID maintenance, input
control, network security, data encryption, virus protection,
internet and e-mail.
The data centre of RBL as well as automation are on the
process, IT policy regarding physical security and information
security for risk management is yet to be fully implemented.
Risk is identified by the branch. Internal IT Audit is conducted
by Audit & Inspection Division-2 on half yearly basis. IT
professionals are recruited and several trainings are provided
to the related employees.
Comprehensive Risk Management Report (CRMR)
CRMR is prepared according to the prescribed format of
Bangladesh Bank DOS circular letter no.13 dated 09.09.2015
by the RMD of RBL. Monthly Risk Management Committee
meeting of RMD is conducted on the basis of analysis and
recommendations made in the CRMR. CRMR is submitted
to the Department of Off-site Supervision, Bangladesh Bank
along with the minutes of the Risk Management Committee
meeting at management level half yearly (June & December)
within the next month of the reporting quarter including
following analysis:
Credit risk
Market risk
a) Interest rate risk
b) Foreign exchange risk
c) Equity price risk
Operational risk
a) Reputational risk
b) Compliance risk

Banks have to prepare a Comprehensive Risk Management c) Environmental risk

Report (CRMR) and must place the same in the Risk d) Money laundering risk

158
 Rupali Bank Limited

RUPALI BANK LIMITED

DISCLOSURES ON RISK BASED
CAPITAL UNDER BASEL III
For the Year Ended on December 31, 2019

The function of Market discipline in the Revised Capital adequacy Framework is to complement the minimum capital requirements
and the supervisory review process. The aim of introducing Market discipline in the revised framework is to establish more transparent
and more disciplined financial market so that stakeholders can assess the position of the bank regarding holding of assets and to
identify the risks relating to the assets and capital adequacy to meet probable loss of assets. The reports are purported to affirm the
information on Minimum Capital Requirement (MCR) under pillar-I and Supervisory Review Process (SRP) under pillar-II and ensure
transparency about the capital adequacy framework, risk assessment and mitigation methodologies, risk exposure in various spectrum
so that the stakeholders of the industry can examine the risk related compliance of the Bank. These disclosures are intended for market
participants to assess key information about the Bank’s exposure to various risks and to provide a consistent and understandable
disclosure framework for easy comparison among banks operating in the market.

The principles of these disclosures are as follows:

The disclosure’s information is accurate.

The disclosures are easily understandable to users.

The disclosures are complete.

The disclosures are consistent over time.

The disclosures are comparable across banks.

The third pillar of the Basel III highlights the role of market discipline in easing the existing pressure on traditional monitoring measures like
capital requirement and government supervision. The qualitative and quantitative disclosures of the bank under Basel-III requirements
based on the audited financial position as of 31 December 2019 are prepared as per the guidelines of Bangladesh Bank on “Risk Based
Capital Adequacy for Banks” to establish more transparent and more disciplined financial market.

1. Scope of Application
Qualitative Disclosures

(a) The name of the top corporate entity in the group to which
this guidelines applies
Assures Better Service
(b) An outline of differences in the basis of consolidation for Rupali Bank Limited (RBL) is a state-owned commercial bank which
accounting and regulatory purposes, with a brief description was incorporated as a public limited company on December 14, 1986
of the entities within the group under the Companies Act, 1913 and has taken over the business of
Rupali Bank (emerged as a Nationalized Commercial Bank in 1972,
i) that are fully consolidated; pursuant to Bangladesh Bank Nationalization Order 1972 (P.O. No. 26
ii) that are given a deduction treatment. and of 1972) as a going concern).

iii) that are neither consolidated nor deducted Capital to Risk Weighted Assets Ratio (CRAR) report of Rupali Bank
(e.g. where the investment is risk-weighted). Ltd. is submitted to Bangladesh Bank on ‘Solo’ & ‘Consolidated’ basis.
Solo Basis refers to all position of the bank and Consolidated Basis
refers to all position of the bank and its subsidiary companies.

Subsidiaries:
1) Rupali Investment Limited (RIL) a fully owned subsidiary
company of RBL which was incorporated as a public limited company
on August 27, 2010 with the Registrar of Joint Stock Companies &
approved by Bangladesh Securities & Exchange Commission on

Annual Report 2019 159


c) Any restrictions, or other major impediments, on transfer
of funds or regulatory capital within the group.
Quantitative Disclosures
(d) The aggregate amount of surplus capital of insurance
(whether deducted or subjected to an alternative method)
included in the capital of the consolidated group.
2. Capital Structure
Qualitative Disclosures
(a) Summary information on the terms and conditions of
the main features of all capital instruments, especially in the
case of capital instruments eligible for inclusion in CET 1,
Additional Tier 1 or Tier 2.
Quantitative Disclosures
(b) Amount of regulatory capital, with separate disclosure of:
160
August 09, 2011 to perform full-fledged merchant banking activities
like portfolio management, underwriting, stock trading business
etc. Investment in the subsidiary company RIL is risk weighted in the
bank’s exposures.
2) Rupali Bank Securities Ltd. (RBSL) is also a subsidiary company
of RBL which was incorporated as a Public Limited Company on
August 29, 2013 vide registrar of Joint Stock Companies and Firms,
Dhaka certificate of incorporation No. C-110969/13 under Companies
Act 1994. The main objective of the Company is to act as, and carry
on the business of a stock broker & stock dealer and to engage in all
types of stock broking business.
Not applicable
Not applicable
The Basel Committee raised the resilience of the banking sector by
strengthening the regulatory capital framework, building on the
three pillars of the Basel III framework. The reforms raised both the
quality and quantity of the regulatory capital base and enhanced the
risk coverage of the capital framework. The regulatory capital under
Basel-III is composed of (I) Tier-1 (Going-concern Capital) and (II)
Tier-2 (Gone-concern Capital). From regulatory capital perspective,
Going-concern capital is the capital which can absorb losses without
triggering bankruptcy of the Bank and Gone-concern capital is the
capital which will absorb losses only in a situation of liquidation of
the bank. Gone-concern capital represents other elements that fall
short of some of the characteristics of core capital but contribute to
the overall strength of the bank.
Tier-1 capital consists of Common Equity Tier-1 (CET1) Capital and
Additional Tier-1 Capital. CET1 capital of RBL includes of paid-up
capital, statutory reserve, general reserve, retained earnings and
share money deposit. RBL has no such capital under the criteria of
Additional Tier-I capital.
Tier-2 capital of RBL consists of general provision (against
unclassified loans, SMA and Off-Balance Sheet exposures), Non-
Convertible Subordinated Bond. revaluation reserves for fixed assets
(50%), securities (50%) and equity instruments (10%).
Total Regulatory Capital = (Common Equity Tier 1 Capital + Additional
Tier 1 Capital + Tier 2 Capital)
Solo Consolidated
Particulars
Amount in BDT Crore
Paid-up capital 414.17 414.17
Statutory reserve 344.30 344.30
General reserve - -
Retained earnings 39.65 56.00
Share money deposit 680.00 680.00
Sub Total 1478.12 1494.47
 Rupali Bank Limited

Solo Consolidated
Particulars
Amount in BDT Crore
Regulatory Adjustment
Intangible Assets 14.50 14.50
(c) Regulatory Adjustments/ Deductions from capital Deferred Tax Assets (DTA) 65.71 65.71
Common Equity Tier 1 capital 1397.91 1414.26
Additional Tier 1 Capital 0.00 0.00
Total Tier 1 Capital 1397.91 1414.26
Tier 2 Capital 1167.23 1167.23
(d) Total Regulatory capital Total Regulatory capital 2565.14 2581.49

2565.14 2581.49

1397.91 1414.26 Solo

1167.23 1167.23
Consolidated

Tire 1 Capital Tire 2 Capital Total regulatory capital

3. Capital Adequacy
Qualitative Disclosures

(a) A summary discussion of the i) Capital calculation approach:

bank’s approach to assessing
the adequacy of its capital to With regard to regulatory capital computation approaches (Minimum Capital Requirement)
support current and future the bank is following the prescribed approach of Bangladesh Bank. Below are risk wise capital
activities computation approaches that the bank is currently applying:

Credit Risk - Standardized Approach (SA)

Market Risk - Standardized Approach (SA)

Operational Risk – Basic Indicator Approach (BIA)

The bank has maintained Capital to Risk Weighted Assets Ratio (CRAR) on the solo & consolidated
at 10.34 percent & 10.25 percent against the minimum regulatory requirement of 10 percent. Tier-I
capital to Risk Weighted Assets ratio for solo & consolidated are 5.63 percent & 5.61 percent against
the minimum regulatory requirement of 6 percent.

The bank’s policy is to manage and maintain its future capital considering all material risks that
are covered under pillar-2 of Basel III as well as the result of Stress Tests. The primary objective
of the capital management is to optimize the balance between return and risk, while maintaining
economic regulatory capital in accordance with risk appetite.

ii) RBL determines its risk weighted assets (RWA) by multiplying the exposure amount of assets
with their respective risk weight given in Basel III guidelines by Bangladesh Bank. RWA for market &
operational risks are calculated by multiplying the capital charge for these risks by the reciprocal of
minimum capital adequacy ratio (10%).

Quantitative Disclosures
Solo Consolidated
Particulars
Amount in BDT Crore
(b) Capital Requirement For Credit Risk 2027.47 2032.41
(c) Capital Requirement For Market Risk 50.51 80.48

Annual Report 2019 161

Quantitative Disclosures
Solo Consolidated
Particulars
Amount in BDT Crore
(d) Capital Requirement For Operational Risk 403.78 406.73
(e) Capital ratio :
Capital To Risk Weighted Assets Ratio (CRAR) % 10.34% 10.25%
CET-1 to RWA Ratio 5.63% 5.61%
Tier-1 capital to RWA ratio 5.63% 5.61%
Tier -2 capital to RWA Ratio 4.70% 4.63%
(f) Capital Conservation Buffer 0.34% 0.25%
(g) Available Capital under Pillar 2 Requirement - -

4. Credit Risk
Qualitative Disclosures
(a) (i) Definitions of past due
and impaired (for accounting
purpose)
Credit risk is the financial losses resulting from the failure by a client or counterparty to meet its
contractual obligations to the Bank. Credit risk arises from the Bank’s dealings with or lending to
corporate, individuals, and other banks or financial institutions.

As per guideline of Bangladesh Bank, all Loans and Advances are grouped into 4 (four) categories
namely- Continuous Loan, Demand Loan, Fixed Term Loan and Short-Term Agricultural & Micro
Credit for the purpose of classification. The bank follows Bangladesh Bank circulars and Guidelines
related to classification and provisioning to define past due and impairment.

Rupali Bank Ltd. follows Bangladesh Bank’s BRPD Circular No.14 Dated 23 September 2012 and
subsequent changes for classification of loans & advances.
Classification Classification Period for
Types of Loans
SL Status classification
SMA 2 Months
Continuous Loan SS 3M
1 (Overdraft, Cash credit-Hypo, Cash credit-
pledge etc.) DF 9M
BL 12M
SMA 2M
Demand Loan SS 3M
2
(Forced Loan, PAD, LIM, FBP, IBP etc.) DF 9M
BL 12M
SMA 2M
Fixed Term Loan SS 3M
3 (which are repayable under a specific
repayment schedule- within 5 years.) DF 9M
BL 12M
SMA 2M
Fixed Term Loan
SS 3M
4 (which are repayable under a specific DF 9M
repayment schedule- above 5 years.)
BL 12M
SMA -
SS 12M
5 Short term Agriculture & Micro credit
DF 36M
BL 60M

162
 Rupali Bank Limited

Short Term Consumer Financing BHs/

Agriculture Other All other
Particulars SMEF MBs
& Micro than HF LP Credit
/SDs
Credit HF,LP
Standard 2.5% 5% 1% 2% 0.25% 2% 1%
UC
(a) (ii) Provisioning SMA - 5% 2% 2% 0.25% 2% 1%
depending on the SS 5% 20% 20% 20% 20 % 20% 20%
group:
Classified DF 5% 50% 50% 50% 50 % 50% 50%
BL 100% 100% 100% 100% 100 % 100% 100%
HF=Housing Finance, LP=Loans for professionals to setup business, SMEF=Small & Medium Enterprise
Financing, BHs= Loans to Brokerage House, MBs= Loans to Merchant Bank, SDs = Loans to Stock
Dealers.
On the basis of Bangladesh Bank’s credit risk management policies, a manual of Credit Risk Management (CRM)
has been formulated and approved by RBL’s Board of Directors. The key principle of credit risk management is
client due diligence, which is aligned with our country and industry portfolio strategies before sanction of any
credit facility as per CRM policies which emphasizes on the size & type, purpose, structure (term, conditions,
repayment schedule& interest rate) and securities of the loan proposed.

For actively aiming to prevent concentration (Single borrower/group borrower/ geographical/sectoral

concentration) and long tail-risks (large unexpected loss; RBL follows different prudential guidelines of its own
and Bangladesh Bank. In all market conditions, the bank’s capital is effectively protected by ensuring a diversified
and marketable credit portfolio.

Risk appetite for credit risk of RBL is determined by its Board of Directors desiring optimum business mix, risk
(a) (iii) Discussion preferences, the acceptable trade-off between risk & reward etc. as per circular of Bangladesh Bank’s Department
of the bank’s credit of Off-site Supervision.
risk management
policy: The assessment process is initiated at branch/credit division and placed before Management Credit Committee
(MCC) or Board for approval. This process includes borrower analysis, industrial analysis, historical financial
analysis, repayment sources analysis, mitigating factors etc. Credit risk grading system has been adopted
by RBL as per Bangladesh Bank’s instruction that defines the risk profile of borrower’s to ensure that account
management, structure and pricing are commensurate with the risk involved.

RBL is very much concerned in managing non-performing loan. RBL follows Bangladesh Bank’s BRPD Circular for
classification of loans & advances and provisioning. Targets to recover classified loans & advances are determined
for the branch, zonal Office and divisional office at the beginning of the year. Continuous contact with the
borrowers, special meeting with the defaulter, recruitment of recovery specialist, formation of special task forces,
announcement of special program are emphasized.

Amount in BDT crore

Risk Weighted Assets (R.WA) for Credit Risk Solo Consolidated
On-Balance Sheet 20199.03 20248.36
Off-Balance Sheet 75.76 75.76
Total Credit Risk 20274.79 20324.12
Quantitative Disclosures

Amount in BDT Crore Gross Credit Risk Exposures

146.9
Loan General 13766.43

Cash Credit 7443.83 6995.33

(b) Gross credit 13766.43
Overdrafts 2319.91
risk exposures 2319.91
Other Loans 6995.33
7443.83
Bills Purchased and Discounted 146.90

Total 30672.40 Loan General Cash Credit Overdrafts Other Loans Bills Purchased and Discounted

Annual Report 2019 163

 Amount in BDT Crore 63.73%

Dhaka 19547.57

Chattogram 2901.57

Khulna 3837.86

Rangpur 1193.99
(c) Geographical
distribution of Rajshahi 801.22
12.51%
exposures: 9.46%
Barishal 917.41
3.89% 2.61% 2.99% 2.56%
0.87% 1.38%
Sylhet 266.27

Dhaka

Chattogram

Khulna

Rangpur

Rajshahi

Barishal

Sylhet

Cumilla

Mymensingh
Cumilla 421.96

Mymensingh 784.55

Total 30672.40

Sector Amount in BDT Crore

Agriculture 1,023.87
RMG 2,265.23
Textile 7,695.99
Food & Allied Industries 538.39
Pharmaceutical Industries 585.41
Chemical Fertilizer etc. 1,208.36
Cement & Ceramic Industry 295.44
(d) Industry or Ship Building 121.78
counterparty type
Ship Breaking 459.51
distribution of
exposures Power, Gas 308.74
Other Manufacturing 2,627.33
Services 1,065.72
Trade & Commerce 6,395.44
Construction 594.66
Transport 300.54
Consumer finance 1,070.66
Other 4,115.33
Total 30,672.40
Particulars Amount in BDT Crore
(e) Residual
contractual Repayable on Demand 613.45
maturity Not more than 3 months 10828.96
breakdown of the
Over 3 months but not more than 1 year 9163.55
whole portfolio,
broken down by Over 1 year but not more than 5 years 5369.69
major types of Over 5 years 4696.75
credit exposure.
Total 30672.40

4614.57

26057.83

Unclassified Classified

164
 Rupali Bank Limited

Amount in BDT Crore

Unclassified:
Standard
Special Mention Account(SMA)
Sub Total
Government Classified:
Sub-standard
Doubtful
Bad & Loss 36.55
Sub Total 36.55
Unclassified:
Standard 1220.92
Special Mention Account(SMA)
Sub Total 1220.92
Other Public Classified:
Sub-standard
Doubtful
Bad & Loss 12.75
(f) Major Sub Total 12.75
Unclassified:
counterparty Standard 23350.10
wise amount of
SMA 1486.80
impaired loans:
Sub Total 24836.90
Classified:
Private
Sub-standard 84.45
Doubtful 48.08
Bad & Loss 4432.75
Sub Total 4565.28
Grand Total 30672.40
Summary
Unclassified:
Standard 24571.03
SMA 1486.80
Sub Total 26057.83
Classified:
Sub-standard 84.45
Doubtful 48.08
Bad & Loss 4482.04
Sub Total 4,614.57
Grand Total 30,672.40
Particulars Amount in BDT crore
(g) Movement of Gross Non Performing Assets (NPAs) 4614.57
NPAs & specific
provisions for Non Performing Assets (NPAs) to outstanding Loans & advance 16.15%
NPAs Movement of NPAs (Gross)
Opening balance 4428.86
Additions during the year 858.02
Reductions (Cash Recovery during the year) (83.62)
Reductions (Adjustment during the year) (588.69)
Closing balance 4614.57
Movement of specific provisions for NPAs
Opening balance 1251.71
Less: Adjustment during the year (0.06)
Less: Transfer to General Provision (248.86)
Add: Provisions made during the period 1.54
Closing Balance 1004.33

Annual Report 2019 165

5. Equities: Disclosures for banking book positions
Qualitative Disclosures
a (i) Differentiation between holdings on which capital Investment in equity securities are broadly categorized into two parts:
gains are expected and those taken under other
objectives including for relationship and strategic i. Quoted Securities (Common or Preference Shares & Mutual Fund)
reasons that are traded in the secondary market (Trading Book Assets).

ii. Unquoted securities include shares of Central Depository Bangladesh

Limited (CDBL), investment in SWIFT and Market Stabilization Fund
(MSF).

a (ii) Discussion of important policies covering the valuation
and accounting of equity holdings in the banking
book. This includes the accounting techniques
and valuation methodologies used, including key
assumptions and practices affecting valuation as well
as significant changes in these practices.
The primary aim is to invest in these equity securities for the purpose
of capital gain by selling them in future or held for dividend income.
Dividends received from these equity securities are accounted for as and
when received. Both Quoted and Un-Quoted equity securities are valued
at cost and necessary provisions are maintained if the prices fall below the
cost price.

Quantitative Disclosures
Solo Consolidated
Particulars
Amount in BDT Crore

Cost Price Fair Value Cost Price Fair Value

Unquoted Shares 679.38 679.38 679.38 679.38

Quoted Shares 167.68 254.30 317.55 352.42

b) Value disclosed in the balance sheet
of investments, as well as the fair value of Total 847.06 933.68 996.93 1031.80
those investments; for quoted securities,
a comparison to publicly quoted share 679.38 679.38 679.38 679.38
values where the share price is materially
different from fair value. Unquoted
Shares
317.55 352.42
254.3 Quoted
167.68
Shares

Cost Price Fair Price Cost Price Fair Price

Solo Consolidated

c) The cumulative realized gains (losses)

arising from sales and liquidations in the Nil
reporting period.
d (i) Total unrealized gains (losses) 34.87
d (ii) Total latent revaluation gains (losses) 141.11
d (iii) Any amounts of the above included in
Nil
Tier 2 capital

Required Capital Charge on Equities

e) Capital requirements broken down by
appropriate equity groupings, consistent Solo Consolidated
with the bank’s methodology, as well as the Particulars
Amount in BDT Crore
aggregate amounts and the type of equity
investments subject to any supervisory
Specific Risk 16.77 31.76
provisions regarding regulatory capital
requirements.
General Market Risk 16.77 31.76

166

6. Interest Rate Risk in the Banking Book (IRRBB)
Qualitative Disclosures
a) The general qualitative disclosure
requirement including the nature of IRRBB
and key assumptions, including assumptions
regarding loan prepayments and behavior
of non-maturity deposits, and frequency of
IRRBB measurement.
Quantitative Disclosures
(b) The increase (decline) in earnings or
economic value (or relevant measure used Duration GAP (DA-DL)
by management) for upward and downward Yield to Maturity (YTM-Assets)
rate shocks according to management’s
method for measuring IRRBB, broken down Yield to maturity (YTM-Liabilities)
by currency (as relevant).
Magnitude of Interest Rate Change
Rupali Bank Limited
To manage this risk in the banking book, bank considers the impact of interest rate
changes on both assets and liabilities, and its particular features including, among
other things, terms and timing. Changes in interest rates affect both the current earnings
(earning perspective) as well as the net worth of the bank (economic value perspective).
RBL periodically computes the interest rate risk on the banking book that arises due to
re-pricing mismatches in interest rate sensitive assets and liabilities. For computation
of the interest rate mismatches the guidelines of Bangladesh bank are followed. Details
relating to re-pricing mismatches and the interest rate risk thereon are placed to the
ALCO regularly. Following techniques for managing the IRRBB in Rupali Bank Ltd. are
applied:
Re-pricing Schedules: It is the simplest techniques for measuring a bank’s interest
rate risk exposure and that is generating a maturity/re-pricing schedule that distributes
interest-sensitive assets, liabilities, and OBS positions into a certain number of
predefined time bands according to their maturity (if fixed-rate) or time remaining to
their next re-pricing (if floating-rate). Those assets and liabilities lacking definitive re-
pricing intervals (e.g. sight deposits or savings accounts) or actual maturities that could
vary from contractual maturities are assigned to re-pricing time bands according to the
judgment and past experience of the bank.
Gap Analysis: It helps to assess the interest rate risk of current earnings. To evaluate
earnings exposure, interest rate-sensitive liabilities in each time band are subtracted
from the corresponding interest rate-sensitive assets to produce a re-pricing “gap” for
that time band. This gap is then multiplied by an assumed change in interest rates to
yield an approximation of the change in net interest income that would result from such
an interest rate movement.
i. Duration: A maturity/re-pricing schedule is also used to evaluate the effects of
changing interest rates on a bank’s economic value by applying sensitivity weights
to each time band. Typically, such weights are based on estimates of the duration of
assets and liabilities that fall into each time band.
ii. Quarterly Stress Testing: It is conducted on quarterly basis as per the directives of
Bangladesh Bank to gain better insight into the vulnerable issue of IRRBB.
Particulars Amount in BDT Crore
Market Value of Assets 49638.98
Market Value of Liabilities 48033.54
Weighted Average of Duration of Assets (DA) 1.39
Weighted Average of Duration of Liabilities (DL) 1.01
0.41
10.95%
5.58%
1% 2% 3%
Change in market value of equity
-183.75 -367.51 -551.26
due to and increase in interest rate
Stress Testing Minor Moderate Major
Regulatory Capital (after shock) 2381.39 2197.63 2013.88
RWA (after shock) 24735.48 24735.48 24735.48
CRAR (after shock) 9.63% 8.88% 8.14%
Annual Report 2019 167
7. Market Risk
Qualitative Disclosures
a (i) Views of BOD on trading/ investment The Board of Directors approves all policies related to market risk, sets limits and reviews
activities compliance on a regular basis. The objective is to obtain maximum returns (without
taking undue risks) by reducing the negative effect of the risk.
a (ii) Methods used to measure Market risk
Standardized Approach (SA) is used for calculating capital charge against market risk
(interest rate risk, equity position & foreign exchange risk) which is determined separately.
The total capital requirement in respect of market risk is the sum of capital requirement
measured in terms of two separately calculated capital charges for specific market risk
and general market risk for each of these market risk sub-categories.

a (iii) Market Risk Management system
a (iv) Policies and processes for mitigating There are approved limits for credit deposit ratio, liquid assets to total assets ratio,
market risk
RBL makes investment decision based on historical data of market movements of all
comparable financial instruments to avoid general market risk. For managing specific
risk RBL emphasizes on investment in Government treasury bonds and quality financial
instruments, which are less volatile in nature. Treasury Front Office, Back Office & Mid
Office have been established and functioning through an independent organizational
chain in line with the manual.
maturity mismatch, commitments for both on-balance sheet and off-balance sheet
items, borrowing from money market and foreign exchange position. The limits are
monitored and enforced regularly to protect against market risks. These limits are
reviewed based on prevailing market and economic conditions to minimize risk caused
by market fluctuation.

Quantitative Disclosures

Solo Consolidated
The capital requirements for
Amount in BDT Crore

Interest rate risk 12.94 12.94

Equity position risk 33.54 63.51

Foreign Exchange risk 4.03 4.03

Commodity risk Nil Nil

63.51

Solo
33.54
Consolidated

12.94 12.94

4.03 4.03

Interest rate risk Equity position risk Foreign Exchange risk

168

8. Operational Risk
Qualitative Disclosures
Views of BOD on system to reduce
Operational Risk
Performance gap of executives and
staffs
Potential external events
Policies and processes for mitigating
operational risk
Approach for calculating capital
charge for operational risk
Qualitative Disclosures
The capital requirements for operational risk
Rupali Bank Limited
Internal control & compliance (ICC) is the main tool in managing operational risk
management which through three units of ICC i.e. Monitoring, compliance and Audit
& Inspection; controls overall operation of the bank. Board audit committee directly
oversees the functions of ICC to prevent operational risks.
RBL has a Human Resource Policy with the formal rules and guidelines to recruit, train,
assess and reward employees. This policy is applied consistently and fairly across
the bank. RBL ensures posting of right persons in the right places identifying ideal
performers and rewarding them with desired promotion and posting. Extensive training
programs are also taken for every level of employees ensuring to build professionals
with a blend of technical, business and leadership skills.
External events may affect business operations directly or indirectly. These external
events may stem from the socio-economic and political environment within which
the bank is operating. In order to minimize effects of unexpected external events RBL
aims at and relies on collecting and analyzing information on a continuous and timely
manner.
RBL has formed SMT (Senior Management Team) to identify measure, monitor and
control the risks through framing required policies and procedures. The policy of
managing operational risk through Internal Control and Compliance is approved by
the Board of Directors taking into account the relevant guidelines of Bangladesh Bank.
DCFCL (departmental control function check list) and QOR (quarterly operation report)
are applied for evaluation of the branches operational performance. Manuals related
to Credit, Human Resources, Finance & Accounts, Treasury, Audit and Inspection etc.
have been prepared for continuous recognition and assessment of all material risk
that could adversely affect the achievement of RBL’s goal. The audit & inspection
division makes a year wise risk based audit plan to carry out comprehensive audits &
inspections on the banking operations to ensure procedures are in place & complied
with.
RBL uses the basic indicator approach (BIA) to calculate its operational risk. Under
BIA, the capital charge for operational risk is a fixed percentage denoted by α (alpha)
of average positive annual gross income (GI) of the bank over the past three years. The
capital charge may be expressed as follows:
K=[(GI1 + GI2 + GI3) x α] /n
Where,
K = Capital charge under the basic indicator approach
GI= Only Positive annual gross income over the previous three years
α = 15%
N = Number of the previous three years of which gross income is positive
Solo Consolidated
Amount in BDT Crore
403.78 406.72
Annual Report 2019 169
9. Liquidity Ratio
Qualitative Disclosures
Views of BOD on system to reduce
liquidity risk
Methods used to measure liquidity
risk
Liquidity risk management system
Policies and processes for mitigating
liquidity risk
Qualitative Disclosures
Particulars
Liquidity Coverage Ratio
Net Stable Funding Ratio (NSFR)
Stock of High quality liquid assets
Total net cash outflows over the next 30 calendar days
Available amount of stable funding
Required amount of stable funding
170
Liquidity risk is a financial risk that for a certain period of time a given financial
asset, security or commodity cannot be traded quickly enough in the market without
impacting the market price. RBL is blessed with a prudent Board of Directors that has
always been giving utmost importance to minimize the liquidity risk of the bank. The
prime responsibility of the liquidity risk management of the bank rests with Treasury
Division under the supervision of ALCO Committee, which maintains liquidity based
on current liquidity position, anticipated future requirement, sources of fund, options
for reducing funding needs, present and anticipated asset quality, present and future
earning capacity, present and planned capital position, etc.
To identify and monitor the driving factors of liquidity risk, it is viewed from the
following aspects:
Cash Reserve Ratio (CRR)
Statutory Liquidity Ratio (SLR)
Liquidity Coverage Ratio (LCR)
Net Stable Funding Raito (NSFR)
Structural Liquidity Profile (SLP)
Advance Deposit Ratio (ADR)
Medium Term Funding Ratio (MTFR)
Maximum Cumulative Outflow (MCO)
RBL’s own liquidity monitoring tools:
Wholesale Borrowing and Funding Guidelines
Liquidity Contingency Plan
Management Action Trigger
According to liquidity contingency plan we have incorporated all the strategic decision
to tackle any sort of liquidity crisis. The Asset Liability Committee (ALCO), which meets at
least once in a month, is responsible for managing and controlling liquidity of the bank.
Treasury front office closely monitors and controls liquidity requirements on a daily basis
by appropriate coordination of funding activities and they are primarily responsible for
management of liquidity in the bank. A monthly projection of fund flows is reviewed in
ALCO meeting regularly.
Asset-Liability Committee (ALCO) is responsible for monitoring liquidity measures and
limits in RBL. Liquidity is maintained in excess of the maximum cumulative outflows
calculated within these stress tests. Board Risk Management Committee set policies and
process to mitigate all risks including liquidity risk. Regulatory standards for LCR and
NSFR are ‘≥100%’ and ‘>100%’ respectively.
Amount in BDT Crore
154.52%
94.92%
8,727.16
5,647.74
41,871.00
44,113.84

10. Leverage Ratio
Qualitative Disclosures
Views of BOD on system to reduce
excessive leverage
Policies and processes for managing
excessive on and off balance sheet
leverage
Approach for calculating exposure
Quantitative Disclosures
Particulars
Leverage Ratio
On balance sheet exposure
Off balance sheet exposure
Total Deduction From On and Off-Balance Sheet Exposure
Total exposure
Rupali Bank Limited
In order to avoid building-up excessive on and off-balance sheet leverage in the banking
system, a simple, transparent, non-risk based leverage ratio has been introduced by
Bangladesh Bank. The leverage ratio is calibrated to act as a credible supplementary
measure to the risk based capital requirements. Banks are highly leveraged organizations
which facilitate leverage for others.
The responsibility of monitoring excessive leverage of the bank lies with the concerned
divisions under the guidance of the Board of Directors of RBL. Policies and processes for
keeping the bank’s leverage ratio up to the mark are reviewed by the Board of Directors
on a regular basis.
The bank reviews its leverage position as per the Guidelines on Risk Based Capital
Adequacy (Basel III). To manage excessive leverage, the bank follows all regulatory
requirements for capital, liquidity, commitment, Advance Deposit Ratio (ADR), Maximum
Cumulative Outflow (MCO), large exposures which are eventually reinforcing different
standards set by Bangladesh Bank. The aim is to ensure that the high leverage inherent
in banking business models is carefully and prudently managed.
A minimum Tier 1 leverage ratio of 3% is being prescribed both at solo and consolidated
level. Accordingly RBL maintains leverage ratio on quarterly basis.
Leverage Ratio = Tier 1 Capital (after related deductions)/Total Exposure (after related
deductions)
The exposure measure for the leverage ratio generally follows the accounting measure
of exposure. In order to measure the exposure consistently with financial accounts, the
following is applied by the bank:
i. On balance sheet, non-derivative exposures are net of specific provisions and
valuation adjustments (e.g. surplus/ deficit on Available for sale (AFS)/ Held-for-
trading (HFT) positions).
ii. Physical or financial collateral, guarantee or credit risk mitigation purchased is not
allowed to reduce on balance sheet exposure.
iii. Netting off loans and deposits is not allowed.
Solo Consolidated
Amount in BDT Crore
2.76% 2.79%
48720.60 48785.11
1977.91 1977.91
80.21 80.21
50618.30 50682.81
Annual Report 2019 171
11. Remuneration

The disclosure requirement on remuneration allows market participants to assess the quality of the bank’s compensation practices
and the incentives towards risk taking the supports. The overall objective of the Bank’s remuneration policy is to establish a framework
for attracting, retaining and motivating employees and creating incentives for delivering long-term performance within established
risk limits. Performance is judged on both the achievement and values of the bank.

Qualitative Disclosure

Sl no.

The human resource division of the bank oversees the

Name, composition and mandate of the main body
remuneration in line with its human resource policy under
overseeing remuneration.
direct guidance of Board of Directors of the bank.
External consultants whose advice has been sought, the
The bank does not have any external consultant in
body by which th ey were commissioned, and in what
preparing and implementation of remuneration process.
areas of the remuneration process.
A description of the scope of the bank’s remuneration RBL follows National Pay Scale. The bank follows a non-
policy (eg by regions, business lines), including the extent discriminatory policy in respect of remuneration and
to which it is applicable to foreign subsidiaries and benefits for head quarter and regions. RBL has no foreign
branches. subsidiaries and branches.
Types of employees considered as material risk takers:
a.
Employees No.
Managing Director and CEO 01
Deputy Managing Director 03
A description of the types of employees considered as
General Manager 21
material risk takers and as senior managers, including the
number of employees in each group. CFO 01
Divisional & Local Office Head ( GM) 11
Divisional Head of Head Office 38
Zonal Managers 27
Branch Managers 572

There is no separate remuneration structure in RBL.

An overview of the key features and objectives of
RBL follows the national pay scale introduced by The
remuneration policy.
Government of The Peoples’ Republic of Bangladesh.
RBL followed National Pay Scale-2009 from 1st July 2009
to 30 June 2015. The Government of the Peoples Republic
of Bangladesh introduced national pay scale-2015. The
Whether the remuneration committee reviewed the firm’s
same has been approved in 987th board meeting held on
b. remuneration policy during the past year, and if so, an
December 27, 2015 and confirmed in 988th board meeting
overview of any changes that was made.
held on December 30, 2015. A circular has been issued
on January 7, 2015 July 01, 2015 on December 15, 2015
effective from 1st July, 2015 in this regard.
A discussion of how the bank ensures that risk and
compliance employees are remunerated independently RBL follows National Pay Scale.
of the businesses they oversee.
An overview of the key risks that the bank takes into
RBL follows National Pay Scale.
account when implementing remuneration measures.
An overview of the nature and type of the key measures
used to take account of these risks, including risks difficult Not applicable.
to measure (values need not be disclosed).
c.
A discussion of the ways in which these measures affect
Not applicable.
remuneration.
A discussion of how the nature and type of these measures
has changed over the past year and reasons for the change, Not applicable.
as well as the impact of changes on remuneration.

172
 Rupali Bank Limited

An overview of main performance metrics for bank, top-

Not applicable.
level business lines and individuals.
A discussion of how amounts of individual remuneration
Not applicable.
d. are linked to bank-wide and individual performance.
A discussion of the measures the bank will in general
implement to adjust remuneration in the event that Not applicable.
performance metrics are weak.
A discussion of the bank’s policy on deferral and vesting
The pay scale describes short term and long term benefits.
of variable remuneration and, if the fraction of variable
Short time benefits include salary, festival bonus and
remuneration that is deferred differs across employees
incentive bonus. Long term benefits include gratuity and
or groups of employees, a description of the factors that
pension, provident fund and leave encashment.
e. determine the fraction and their relative importance.
A discussion of the bank’s policy and criteria for adjusting
deferred remuneration before vesting and (if permitted
Not applicable.
by national law) after vesting through claw back
arrangements.
An overview of the forms of variable remuneration offered
(ie cash, shares and share-linked instruments and other Not applicable.
forms.

f. A discussion of the use of the different forms of variable

remuneration and, if the mix of different forms of variable
remuneration differs across employees or groups of Not applicable.
employees), a description the factors that determine the
mix and their relative importance.

Quantitative Disclosures

g. Number of meetings held by the main body overseeing

remuneration during the financial year and remuneration Not applicable
paid to its member.
Number of employees having received a variable
Not applicable.
remuneration award during the financial year.
Number and total amount of guaranteed bonuses
Not applicable.
awarded during the financial year.
h
Number and total amount of sign-on awards made during
Not applicable.
the financial year.
Number and total amount of severance payments made
Not applicable.
during the financial year.
Total amount of outstanding deferred remuneration, split
into cash, shares and share-linked instruments and other Not applicable.
i. forms.
Total amount of deferred remuneration paid out in the
Not applicable.
financial year
Breakdown of amount of remuneration awards for the
financial year to show: Particulars Amount in BDT Crore

Fixed and variable.

j. Fixed 479.30
Deferred and non-deferred.
Different forms used (cash, shares and share linked Variable 46.09
instruments, other forms).
Total amount of outstanding deferred remuneration and
retained remuneration exposed to ex post explicit and/or Not applicable.
implicit adjustments.
k. Total amount of reductions during the financial year due
Not applicable.
to ex post explicit adjustments.
Total amount of reductions during the financial year due
Not applicable.
to ex post implicit adjustments.

Annual Report 2019 173

174
 Rupali Bank Limited

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Annual Report 2019 175

 SUSTAINABILITY
ANALYSIS
OUR NATURAL CAPITAL
“Rupali Bank’s approach to sustainability is based on our belief that as Bangladesh’s long-
standing commercial bank, we have a duty to ensure the region’s long-term economic, social and
environmental well-being. We believe in sustainable development, which entails respect for the
environment, human rights, decent work, economic growth and business ethics. As we continue
to deepen our presence across the region, we also strive to address the environmental, social and
governance (ESG) tenets to help ensure a safe, secure and trusted banking system for all.

- Md. Obayed Ullah Al Masud, Managing Director and CEO

SUSTAINABLE BANKING
Embracing a partnership-oriented approach
At Rupali Bank, we are cognizant of the direct environmental
and social impact of our operations, and have framed objectives
and targets toward mitigating those impacts.
We are aware that our lending and funding activities have
significant potential to affect the environment, society and
the economy indirectly. Hence, we are constantly enhancing
the mechanisms to encourage our customers and suppliers
to comply with all applicable local and national legislations,
including those intended to safeguard the environment and
social well-being. Further, we encourage our customers and
suppliers to adopt suitable best practices that are aligned with
internationally-recognised guidelines, codes and standards. This
represents our partnership approach to make our ecosystem
better and safer for all.
our decisions and actions may have on our stakeholders and
the environment. It also ensures that we remain economically
relevant through managing ESG risks and opportunities in line
with market realities.
Notably, when crafting and developing business decisions
and developing our products and services, we consider our
stakeholders’ expectations, and as part of our commitment
to responsible growth, we also seek to identify, access and
manage social and environmental challenges, impact and
opportunities.
With a view to take our sustainable electrification agenda
forward, we have installed solar panels in six branches that help
optimise grid electricity consumption and lower our carbon
footprint. Further, we are also cognizant of precious resource
consumption and constantly raise awareness on the need to
optimise paper, water and energy consumption across our
offices and also amongst our customer communities.

Further, being a responsible corporate body, we conform to
all regulations and guidelines issued by the Government of
Bangladesh and Bangladesh Bank. This makes us a trusted
partner amongst our regulators to promote best practices in the
country’s banking industry.
Green banking: Balancing growth with responsibility
At Rupali Bank, our sustainability strategy mirrors our business
approach of balancing value creation with environmental
considerations. It takes into account the influence and impacts
Further, as part of our green banking initiatives, we have also
contributed to credit disbursement for projects that preserve the
environment. Such projects include green bricks manufacturing,
solar energy generation, green establishment, recycling and
energy-efficiency projects, etc. In addition to sustainable
finance, we also engage with our clients in an advisory
capacity, promoting best practices that further contribute to the
sustainability of their operations.
For our staff too we organise various training programs,
workshops, seminars and awareness campaigns to ensure that

176

they spread the message of green and social finance among
potential customers.
Rupali Bank’s green finance disbursement rose to Tk. 839.51 cr
in 2019. For some of the projects, funds were sourced from the
refinancing window of Bangladesh Bank.
Embracing our social responsibility
As a front line financial services organization of Bangladesh,
Rupali Bank extends financial support to empower the poor
and underprivileged communities, while also fulfilling its role
in financial inclusion through bringing low-income households
under the folds of institutional finance. Our social support
also extends in the realm of education, sports, culture, health
care, welfare, disaster management and rehabilitation, rural
infrastructure development, protection and preservation of
heritage, support to liberation war heroes, etc. A sum of Tk. 1.45
crore was invested in social activities in 2019.
Financial inclusion
Rupali Bank meets the broader societal goals of financial
inclusion and employment generation through banking
intermediation.
The Bank has brought vast swaths of underprivileged and
vulnerable communities, including farmers, unemployed youth,
deprived freedom fighters, RMG workers, school students, street
children and children engaged in menial labour, etc., under
its network through opening accounts in the Bank. Students
between the ages of 6-18 years deposited a substantial Tk.
70.94 under RSBA. Moreover, under financial inclusion, a total of
717,260 accounts became operative in the Bank, of which:
406,690 were owned by farmers
80,856 were under school banking
2,26,308 were under Marginal/Small account-holders (Tk.
ten/fifty/hundred)
2,423 were held by freedom fighters
983 were pothoful financial inclusion accounts
In all, a total of Tk. 88.50 crore was deposited under financial
inclusion accounts in 2019.
Mobile banking
With a view to enhance transactional banking, yet provide
customers with the convenience of non-branch-based banking
channels, Rupali Bank emerged as the first state-owned
commercial bank in Bangladesh to provide mobile financial
services.
Today, Rupali Bank provides mobile banking services through
SureCash, with the Bank having more than 1.85 crore clients,
1.35 lac agents and 206 distributors spread across the country.
Further, under a MoU signed between Rupali Bank and the
Ministry of Primary and Mass Education, 1.2 crore mothers of
1.50 cr primary students of 70,000 schools will receive around Tk.
1,300 cr as stipend through Rupali Bank Surecash project across
the country. Besides, different schools, colleges and universities
receive benefits in realising tuition fees and allowances under
the service, which is also being used to settle the dues of 1.25 lac
sugarcane farmers under Bangladesh Sugar and Food Industries
Ltd. This service is operative among the clients of Grameen Bank
Rupali Bank Limited
to disburse loans and realise installments of deposits. Different
companies, including insurance, banks and service providers,
etc., have forged mobile banking agreements with Rupali Bank
to provide their customers with such added convenience.
Rupali Bank Surecash also helps our customers in paying
utility bills of city corporations (WASA, DESCO, Karnophully Gas
Distribution Company, DPDC and BTCL, etc.), while also availing
cash-in, cash-out, fund transfer and mobile top-up facilities,
among others. The service also includes payment of allowances
received by beneficiaries under the Social Welfare Ministry of the
Government. The Government provides such a facility to extend
banking amongst the under-privileged.
Going into the medium-term, we expect to enhance the quality
and reach of our service network and enable our customers to
access foreign remittance, purchase various types of tickets, pay
Government tax and VAT, etc., through mobile banking.
Contributions to the national exchequer
With regards to Government revenue collection, RBL has
contributed to the process in the form of staff income tax,
tax and VAT deducted at source and excise duty. The Bank
deducts income tax, value added tax and excise duty at source,
as per the law from various payments and services for onward
deposit to the national exchequer. RBL pays taxes on behalf
of its employees as well. The total payment contributed to
the national exchequer during the year 2018 and 2019 were as
follows:
Year Wise Contributions to the national exchequer
367.53
343.42 342.3
2017 2018 2019
Particulars 2019 2018
Tax deducted at source 182.58 201.07
VAT deducted at source 36.25 22.98
Excise duty deducted 29.38 34.03
Corporate tax 94.09 85.34
Total 342.30 343.42
Contribution to the national economy
As a financial services provider of repute, RBL contributes to
the economic prosperity of the country by providing diversified
financial products and services among diverse market segments.
Further, as a bank that is aligned with the national agenda, Rupali
Bank envisages achieving the Government’s industrialisation
policy goals through credit intermediation to various industrial
sectors across the size spectrum in the country. The Bank also
expects to embrace the highest standards of ethics to promote a
fair, efficient and equitable market environment.
Annual Report 2019 177
Our social sustainability goals
We will maintain strong relationships with our partners,
customers, stakeholders and clients
We will optimise the cost of our financial services, thus
promoting alternate delivery channels and making banking
accessible for all
We will conform to guidelines, policies, circulars and
directives of our regulatory body, Bangladesh Bank, and
the Government of Bangladesh
We will augment the scope of our CSR activities to foster a
greater and more sustainable impact
We will contribute to the Government’s financial inclusion
program/strategy, recognising its value in life and lifestyle
transformation
Our environmental sustainability goals
We will continue to extend the scale of green banking
practices at our Bank
We remain committed to emerge as amongst the top-10
banks of Bangladesh in green finance
We will progressively focus on adopting GRI standards of
reporting
Our economic sustainability goals
Our conscious shift in loan policy to CMSME concentration
from large loans will benefit small and medium enterprises,
enabling them to enhance their participation in mainstream
economic growth
Continued emphasis on traditional financing for large
loans
Introduction of new and customised products to meet
specific customer needs
Focus on our national and exchequer contributions
Our marketplace sustainability goals
We are committed to fostering a fair and ethical business
environment to be able to tap into new opportunity pools
We continue to encourage our people to engage in fair
business practices, which enables us to sustain our
customer relationships

Sustainability mapping

Particulars Planning and strategy Implementation

Strong balance sheet;
Sustainable bottomline growth;
Achieve sustainable business
Robust risk management framework ; Yes
growth
Strong capital position ;
Positive KPIs;
Promote best practices in governance ;
Gain customer confidence and trust ;
Sustain a healthy corporate
Ensure fair treatment to all stakeholders ; Yes
culture and governance
Foster ethics and compliance and audits and internal controls;
Ensure rigorous adherence to regulatory compliance;
Craft innovative and useful products and services ;
Promote alternate delivery channels ;

Develop sustainable products Leverage technology for improving customer service ;

Yes
and services Promote mobile banking;
Update/upgrade traditional products andservices;
Manage ESG risks ;
High commitment to our CSR policy;
Focus on financial inclusion ;
Uphold our social contract Yes
Promote school banking as a means to promote education ;
Identify opportunities for engagement in other social services;
Sustain green banking policy adoption and practice;
Engage in environmental
Embrace green thinking; Yes
management
Focus on ethical banking;
Align our practices to our human resource policy;
Develop pro-employee laws and benefits;
Employee benefit and welfare Yes
Embrace succession planning;
Foster an inspiring workplace environment;

178

GREEN BANKING
Alignment with the SDGs
The sustainable development goals (SDGs) set the global
agenda for sustainable economic, social and environmental
development by 2030 and call for action by both the public and
private sectors. The Government of Bangladesh is committed to
realising the goals enshrined in the SDGs within the stipulated
timeline and we, as a Bank, are also geared towards making
meaningful contributions.
We recognise that while Rupali Bank is better placed to
contribute directly to the sub-sets of the goals, the broadening
scope of our green banking, sustainable financing and impact
investment activities and their corresponding positive impact
enable us to align more closely with all the goals.
Generally, green banking normally includes:
Sustainable and ethical banking;
Green loans;
Green banking practices;
Mobile/online banking;
Remote deposits;
Projects that support environmental protection.
Bangladesh Bank, vide BRPD circular No.2 dated February
27, 2011, advised banks to adopt a comprehensive Green
Banking policy in a formal and structured manner, in line with
global norms, so as to protect environmental degradation and
ensure sustainable banking. Welcoming these forward-looking
initiatives, we have introduced a host of green banking activities
at Rupali Bank.
Policy formulation and governance
To comply with Bangladesh Bank’s directives, our Board
constituted a dedicated Sustainable Finance Unit (SFU) by
merging the former Green Banking Unit and CSR Unit.
Green Planet Resort, a green project financed by RBL
Rupali Bank Limited
SFU mandate
1. RBL’s SFU will engage in the following activities regarding
policy formulation:
Environmental-friendly banking;
Corporate social responsibility (CSR);
Environment and Social Risk Management policy,
annexed with credit risk management ;
Green office guideline;
Green strategic planning.
2. The SFU will perform the following activities regarding
strategy formulation:
Carbon footprint measurement (yearly basis);
Climate risk fund formation and operation;
Green marketing.
3. Collaborative CSR (for example, integrated day care centre)
activities;
4. To open green branch as per Bangladesh Bank directives
and permissions;
5. Preparation of sustainability reporting in conjunction with
the Financial Administration Division;
6. Guidelines on Environmental & Social Risk Management
(ESRM) for Banks and Financial Institutions in Bangladesh;
7. Strive to maintain SFD circular no. 01/2016;
8. Execute UN SDGs;
9. Execute Bangladesh Bank’s directives regarding CSR,
sustainable banking and finance;
10. Take into account Bangladesh Bank refinancing, pre-
financing, reimbursement, fund facility and participation
agreement pertaining to the Sustainable Finance
Department of Bangladesh Bank;
11. Introduce green products and instruments;
12. Allocate yearly budget from the Board of Directors of the
Bank for green finance, CSR, climate risk fund and green
marketing;
An environment friendly auto bricks field project (Tunnel kiln)
financed by RBL
Annual Report 2019 179
13. Remain accountable for SFU to the risk committee of the
Bank;
14. Train human resources regarding sustainable finance,
green banking and CSR;
15. Adopt planning and strategy regarding financing of green
projects, CSR and mobilizing and disbursing climate risk
fund ;
16. Take initiatives to be accountable to the Bank’s Internal
Control & Compliance Division.
In light of our Green banking practice, the following activities are
exercised under SFU.
Bangladesh Bank to encourage recycling practices and save the
environment. The Bank sanctioned Tk. 184.64 cr for green bricks
manufacturing projects in 2019.
Recycling and recyclable products
Recycling has become a standard practice for many industries
in recent decades. With a strong footprint in the paper and
plastic industries, Rupali Bank extends its scope for financing
recycling plants. Green Recycle Energy and Diesel Ltd. is one
such recycling project in which RBL disbursed Tk. 18.08 cr.
Green establishments

Promoting energy efficiency and sustainable
electrification
As a part of its green finance practice, Rupali Bank encourages
investments in renewable energy projects. Solar Power and
Electric Industries is one such solar energy project in which Tk.
45.99 cr was disbursed by Rupali Bank.
Green establishments refer to both a structure and the
application of processes that are environmentally responsible
and resource-efficient throughout their life-cycle - from planning
to design, construction, operations, maintenance, renovation
and eventual demolition. Rupali Bank has financed Tk. 716.60
cr in the green establishment projects of Green Planet Resort,
Glorious Ceramics, J.F.K. Fashion and Crony Apparels Ltd.

RBL also supports projects in energy efficiency. For instance, (Amount in Tk. cr)
the Bank has disbursed funds for the manufacturing of such
energy efficient products as LED bulbs/tube-lights, including Project Amount Loan
assembling plants for solar PV cells/arrays of OSM Lighting Sanctioned Outstanding
Solution. Green bricks manufacturing
Arabi Auto Bricks 17.88 13.97
Encouraging investments in environment-friendly
Green Soil Auto Brick 17.75 16.59
brick manufacturing
Hazi Auto Bricks Ltd. 11.14 11.57
Brick kilns are one of the largest sources of greenhouse gas Rashid Auto Bricks 47.86 41.74
emissions in Bangladesh. As an effort to reduce greenhouse Stone Bricks Ltd 90.01 77.60
gases, Rupali Bank has sought to promote smokeless brick-
Sub-total 184.64 161.47
making technology under the broader platform of “Improving
Kiln Efficiency in the Brick Making Industry”. Solar energy
Solar Power & Electric 45.99 35.52
Alternative bricks could be a relief to the environment as they Industries Ltd.
help reduce pollution and prevent destruction of arable land.
Green Establishment
Rupali Bank has always encouraged environment-friendly brick
manufacturing projects, like tunnel kilns, HHKs and non-fired Green Planet Resort 269.20 301.79
block bricks, i.e. autoclave (AAC), concrete blocks, etc. The Bank Glorious Ceramics 25.00 18.94
has invested in the projects of Stone Bricks Ltd, Rashid Auto JFK Fashion Ltd. 171.40 126.84
Bricks, Green Soil Auto Bricks, Arbia Auto Bricks and Hazi Auto
Crony Apparels Ltd. 251.00 187.40
Bricks.
Sub-total 716.60 634.97
Particularly, energy-efficient Hybrid Hoffman Kiln (HHK) units Energy efficiency
under our Clean Development Mechanism (CDM) projects
OSM Lighting Solution 3.50 2.52
save GHGs. We access funds from the re-finance facility of
Recycling
Green Recycle Energy & Diesel 18.08 5.03
Ltd.
Total 968.81 839.51

Promoting the ‘green’ concept through our

stakeholder communications

RBL has been using the following communication in its

envelopes, gift boxes and baskets to raise awareness about
its green products
“Plant trees, save the environment”
“Financing environment-friendly projects”
An environment friendly auto bricks field project (Stone Bricks Ltd) “Bankers cannot avoid social, environmental and
financed by RBL economical responsibilities”

180
 Rupali Bank Limited

“We think about sustainable development without to CNG, which is a green fuel
harming the environment and profit is the logical
The Bank has established a Sustainable Finance Unit (SFU)
consequence”
to manage its green banking activities and take proper
“Pay your bills online” and well-structured steps for availing refinance from
“Reduce, reuse and recycle” Bangladesh Bank

“Be paperless” Steps have also been initiated to raise client awareness
on green banking and launch innovative and customised
“Digitize yourself” green banking products
“Unplug electronic device while not in use”
Online banking

Focusing on progressing ahead swiftly on the digital banking

curve, RBL promotes online banking as a convenient, easy and
simplified tool for customers to access banking services without
having to visit the bank.

RBL actively promotes the causes of optimising paper

consumption, reducing printing costs, saving gas and fuel,
reducing carbon emissions and saving postal expenses;
RBL has installed 12 own branded ATM booths in busy
thoroughfares across the country, thus making their access
easy;
Currently, 572 branches are operated under Core Banking
Solution (CBS), thus enabling the dispensation of cutting- Rashid Autobricks, a green project financed by RBL
edge banking services to customers;
RBL commenced mobile banking under Rupali Bank
Employee training
Surecash that covers more than 1.84 crore customers
within a short while since its initiation; RBL has provided training to its executives/officers on best
The Bank offers BACH facilities in 409 branches. practices in green banking through BIBM;
It provides RTGS and BEFTN facility across 572 branches Further, a mandatory session was also organised across
every foundation course/training module .
Bank's ICT Status
Reporting
Data Connectivity 572 Branches & 10 Divisional Offices and 27 Zonal Offices
A comprehensive regulatory reporting framework on RBL’s
RTGS 572 Branches
green banking activities is being sent on a quarterly basis
BEFTN Branches 572 Branches since 2011.

BACH Branches 409 Branches

Disclosure on green banking
ATM Booth
(Own Branded) 12 Branches RBL’s green banking activities is being comprehensively
Remittance disclosed in the Annual Report since 2010;
facility Branches 572 Branches
The Bank’s green activities are also published on its
Live Branches
under CBS
572 Branches website.
Making green banking an active part of our business
Initiatives in green banking model
RBL has set up solar systems in six branches, thus helping RBL is committed to green banking and has expressed the
optimise conventional energy; following ambitions:
The Bank has crafted two useful sector-specific green
policies (for the tannery and jute sectors); About 20% of the projects financed by RBL are rated on the
environmental scale as ‘Low’, ‘Moderate’ or ‘High’, as per
All staff members/officers are advised to use car/bus/ central bank guidelines. The Bank has taken steps to rate
rickshaw/taxi pool in order to optimise logistics and all projects considering their environmental impact;
mitigate environmental pollution;
In order to lessen paper consumption, RBL has embraced
State-of-the-art video-conferencing systems have been such initiatives as online banking, mobile banking and
developed to avoid travel as much as possible. automation across its operations, which has also enhanced
Most Bank-owned cars and vehicles have been converted operational efficiency.

Annual Report 2019 181

CORPORATE SOCIAL RESPONSIBILITY
Shaping a sustainable future
Rupali Bank works to create positive value for society from
across a variety of fronts. We support the social and economic
development of Bangladesh and its people through an extensive
banking network with a presence in almost all the major regions
of Bangladesh and through our various digital and remote
service channels, providing hundreds of thousands of people
with access to financial services.
Yet we recognize we can do more, and use our expertise in the
financial services industry to promote and support various
activities, especially in the spaces of financial inclusion and
social and societal development.
Improving our relationships
Among our customer and client communities:
At Rupali Bank, we strive to improve business relationships
with our clients and customers by providing modern banking
services, even in remote corners of the country. Through this we
are able to promote responsible finance, while also inculcating
the habit of savings and investments.
RBL Chairman, Monzur Hossain, MP, donating blanket amongst
the street people.
Among our regulators:
As a responsible corporate body, the Bank conforms to
all the stringent regulations and guidelines issued by the
Government of Bangladesh and Bangladesh Bank – in both
letter and spirit.
Among our co-workers:
Through Rupali Bank Training Academy, the Bank is able to
offer cutting-edge training at scale to its employees. The Bank
also encourages performance excellence through reward
and recognition and its corporate culture is underlined by
meritocracy, diversity and inclusion.
Specifically, the bank operates a Death Relief Grant Scheme,
applicable to all employees, with payments out of this fund
disbursed to the successors of the deceased employees
while being in the Bank’s service. The quantum of payment
is determined as per scale and grade. The Bank also
operates two alternative Retirement Benefit Schemes for its
182
permanent employees. These include Contributory Provident
Fund (CPF) and General Provident Fund (GPF). Further, a
Staff Welfare Fund is also run by the Bank out of employees’
regular contributions. Further, children education allowance
is also provided to all employees of the Bank. Further, retired
employees receive medical allowance and half of his/her
last basic pay as festival bonus disbursed twice a year until
his/her death. The Bank also ensures the best healthcare
services made available to all employees through its medical
consultant at Head Office.
Rupali Bank’s famed cricket team has been regularly
participating in various cricket leagues. For instance, the
Bank’s women’s cricket team emerged champion in the
‘Queens XI’ trophy, with the tournament held in Gurugram,
India from 27 to 29 September, 2019. India, Nepal and
Bangladesh participated in the tournament.
Balancing our environmental considerations
Rupali Bank’s green banking services help create
environmental-friendly infrastructure across Bangladesh.
Further, the Bank, under the slogan “Plant tree, nurse
them and save the environment” raises awareness on the
Blood donation program of celebrating Mujib borsho arranged by
RBM
environment in all external communication resources,
including envelopes, etc.
The Bank also promotes green practices amongst its
employees, thus promoting the habit of conserving paper,
electricity, water, etc. The organisation also emphasises on
proper house-keeping, thus maintaining cleanliness.
Financial Inclusion
Rupali Bank opens accounts with initial deposits of as little
as Tk. 10 for freedom fighters, people suffering from extreme
poverty, insolvent handicaps, donation receivers from Hindu
Religious Welfare Trust, allowance receivers under Social
Safety Net Program and other such deprived communities.
Further, it also opens accounts with Tk. 50 and Tk. 100 only
for youth farmers and school students, respectively. These
accounts are free of charge.
Rupali Bank also opens accounts with Tk. 10 for street
children and children engaged in menial jobs with the help
 Rupali Bank Limited

of NGOs authorized by Bangladesh Bank. This is the first
such instance in Bangladesh and perhaps anywhere in the
world, glorifying financial inclusion for those at the absolute
base of the economic pyramid. The objective is to also bring
the floating, homeless, working children under organised
banking and to establish their identity in mainstream society.
These accounts are also free of charge.
socio-economic development of the country under the policy
pursued by the Government. Pursuing the refinance scheme
of Bangladesh Bank’s concessional 5% rate of interest, we
have disbursed Tk. 12 cr. in implementing “Milk Production
& Artificial Insemination Scheme” in 2019. Further, Bank-
NGO linkage credit facility is also provided to different NGOs
operating around the country.

Further, Rupali Bank also provides small scale credit as fishery CSR allocation and utilization budget
loans, shrimp cultivation loans, goat/sheep rearing loans,
(Amount in Tk. cr)
poultry loans, dairy loans, beef fattening loans, loans for
poverty alleviation, loans for the disabled, loans for plantation Particulars 2019 2018
(nursery), loans for salt production, loan against crop storage
Allocation of budget 2.00 2.22
in silos, micro-credit in agro-based activities, loans for pulse
oil seed-species and condiments-maize production, etc., for Utilization of budget 1.45 1.31

CSR Allocation 2019 (%)

Education
5% 15%
Health

10% Financial Inclusion

Rural Infrastructure Development

20% Disaster Management

10%
Sports

1% Literature, Culture & Arts

Social Welfare

15% Research and Development

1% Environment Protection
Sustainability Enhancement
1% 6%
The benefit of under-privileged
1% 15% group of the society.

CSR initiatives in 2019 to the policy adopted by the Government, the bank is using
some slogans on purchasing books, discouraging dowry,
Amount in Tk. lakh
engaging in population control and popularizing green banking
Sl Category Budget Distribution on all its official envelopes.
1 Education 30.00 30.00
2 Health 40.00 39.90 CSR policy of Rupali Bank
3 Financial Inclusion 2.00 0.00
Rupali Bank’s CSR initiatives are conducted via a well-structured
4 Rural Infrastructure Development 12.00 2.00
CSR policy, as approved by the Board of Directors from its
5 Disaster Management 30.00 24.96
1046th assembly on 14th February, 2018.
6 Sports 2.00 1.00
7 Literature, Culture & Arts 2.00 1.75 To execute the Bank’s CSR policy, an 8-member team has
8 Social Welfare 30.00 26.08 been formed under the Sustainable Finance Unit (SFU) at the
9 Research and Development 2.00 0.00 Industrial Credit Division of the Bank. The members comprise of
10 Environment Protection 20.00 0.00 representatives of different divisions.
11 Sustainability Enhancement 20.00 17.95
The benefit of under- CSR activities in 2019
12 10.00 1.30
privileged group of the society.
Total 200.00 144.94 Rupali Bank provides financial support to empower poor people,
as well as for extending banking facility among the underprivileged.
Social services and awareness Our social initiatives also encompass areas like education, sports,
culture, health, relief and rehabilitation operations, protection of
Rupali Bank is engaged in contributing a portion of salaries paid
the environment, protection of heritage, etc.
by the Government to teachers and employees of registered
non-government educational institutions, scholarships and A total of Tk. 1.45 cr. was invested in CSR in 2019. Around Tk.
stipends to girl students at primary levels, pensions to retired 24.00 lac was disbursed to distribute winter clothes among
government, civil and military personnel, and receipt of Hajj the poor in different areas of the country. Further, Tk. 10.80 lac
money and utility bills such as PDB, DESA, DESCO, REB, WASA, was invested in establishing a well-equipped day care centre in
gas, telephone, etc. The Bank also receives municipal and land Motijheel, Dhaka, for the children of working women.
development tax and purchases and sells prize bonds.
Such comprehensive social engagement has supported the
Further, RBL also facilitates banking services exclusively to enhancement of our brand image and contributed to our
women through its six Ladies Branches in five districts. Pursuant acceptance in the societies and communities in which we operate.

Annual Report 2019 183

FINANCIAL INCLUSION
Our focus on responsible and impact-oriented
lending
Through their embedded role in society, financial institutions
have the power to boost the growth of enterprises, societies
and economies. While we at Rupali Bank are committed to
making our banking products and services accessible to a
much wider range of customers existing across the socio-
economic pyramid, we are cognizant of the fact that we must
do so responsibly. In fact, our role in Bangladeshi society is all
the more crucial, with large swaths of communities comprising
of low-income households who can access institutional
finance for life transformation.
Responsible lending, impact-oriented banking and financial
inclusion comprise the major pillars of our organisation’s
sustainability strategy, even as it safeguards the interests
of both the Bank and our customers. As a Bank that is also
committed to underprivileged and deprived communities, we
offer loans and financing that are appropriate to meet their
needs and financial capacity.
In line with our emphasis on value-based banking, Rupali Bank
is driven to generate positive and sustainable impact on the
economy, community and the environment, consistent with
shareholders’ sustainable returns expectations and long-term
interests. We believe that the principles of fairness, ethics and
social responsibility, which are intrinsically linked to being
Shariah compliant, support the demand for values-based
banking that resonates with the rising awareness of social
issues in our communities.
Our financial inclusion policy
Financial inclusion combats poverty by unblocking
advancement opportunities for the disadvantaged poor,
thereby fostering social inclusion and inclusive socio-
economic growth.
At Rupali Bank, we take into consideration the broader
dimensions of financial inclusion also as a social inclusion
tool, or public opportunity for contributing to and benefiting
from sustainable social and economic progress. In this context,
the Bank has included the following to achieve its financial
inclusion objectives:

Financial inclusion program of RBL in 2019: Bank account status under our financial inclusion program Fig in Tk. crore

SI Particulars Number of accounts Total deposits

1. Bank account for beneficiaries of the Social Safety Network Program 2,944 0.15
2. Bank account for freedom fighters 2,423 0.78
3. Bank account for small life insurance policyholders 5,099 0.73
4. Bank account for beneficiaries of the National Service Program 5,364 0.93
5. Other Tk. 10/50/100 accounts / No Frill Account 212,901 10.69
6. Farmers accounts 406,690 4.17
7. School banking accounts 80,856 70.94
8. Street urchins and working children accounts 983 0.11
Total 717,260 88.50

School Banking Conference School Banking Conference

184

Supporting the poor segments by covering them under our
CSR policy;
Providing banking services to the unbanked/under-banked
population pools through implementing the Government’s
social safety and Bangladesh Bank’s inclusion programs;
Extending small-ticket loans for income generation
amongst the self-employed;
Expanding footprint through establishing bank branches
especially in rural areas;
Mobilizing refinance lines from Bangladesh Bank for
conducting agricultural credit programs for fostering rural
economic activities;
Engaging in microfinance/SME activities amongst low-
income groups;
Introducing cost-efficient financial services among the
financially-excluded;
Raising low-cost deposits by opening school banking
accounts as an inclusion tool.
Expansion of Bank Branches
More than half of Bangladesh’s population, or 80mn+ people,
are out of the formal folds of institutional banking services, with
most located in rural areas. To ensure outreach to especially
these segments, Rupali Bank is continuously engaging in
enhancing its branch network in rural regions, taking Bangladesh
bank’s permission, as per the banking services expansion
program. The total number of bank branches operating in the
country stood at 572 in 2019. Over the last 9 years, about 80 new
branches were established, out of which as many as 50 comprise
rural branches.
Rupali Bank Limited
Mobile Financial Services
Rapid growth of mobile phone users and country-wide coverage
of broadband networks has made this channel an important
financial services delivery pipeline. To leverage on this, Rupali
Bank launched its mobile financial services under ‘Surecash’ in
April 2016. The total number of registered customers of Surecash
up to December, 2019 stood at 1,84,52,698.
Future outlook
Supporting the Government’s inclusive growth strategy,
RBL will come forward to implement any further steps to
serve the underserved/un-served economic sectors and
population segments;
Focusing on SMEs and communities engaged in agriculture
and other rural/urban farm/non-farm activities ;
Engaging in continuous expansion of our rural branch
network;
Launching agent banking services as a core part of our
financial inclusion program;
Expanding own branded ATM services across various areas
of the country;
Working with mutually-owned co-operative societies,
offering financial and other specified services;
Continuing with our CSR agenda to foster financial
inclusion on a more rapid basis;
Enhancing IT-based financial services, like BACH, BEFTN
and RTGS.
Annual Report 2019 185
OUR INTELLECTUAL CAPITAL
“At Rupali Bank, we understand that the future is in digitalisation. Recognising this trend early,
we have been accelerating our technological innovation initiatives to stay ahead in a highly
competitive banking landscape. Our digital initiatives center on our focus to enrich our customer
offerings and improve customer experience, invest in strategic capabilities as well as to help
build and participate in the development of the digital ecosystem. The digital groundwork we
have laid so far positions us well to harness the benefits of faster services, lower operational
costs, enhanced productivity and improved customer service.”

- Md. Obayed Ullah Al Masud, Managing Director and CEO

Overview Bank's ICT Status

Data Center Live from April 2014
At Rupali Bank, we aspire to be the digital bank of choice for
our customers as part of one of our key strategic objectives. To Data Recovery Center (DRC) Live from March 2016
achieve this, we leverage our extensive and long-running client CIB online Software Live from December 2010
relationships to better understand our customer needs and Online TM form Monitoring System Software Live from December 2016
expectations, and based on the insights obtained, we develop
CBS Support System Live & up graded
customer-centric technology-enabled financial solutions,
utilising our in-house expertise, while also engaging in Head office support system Software Live from January 2016
Human Resources Management
meaningful collaborations. Further, we will also invest in the up- Web based Software Live from 9th December 2015
skilling of our employees to help ensure that we are securing the Online Export–Import Transaction
Live & up graded
Monitoring System Software
skills of our people for the future, while promoting the culture of
Customers of Mobile Banking 1.60 crore
innovation for the sustainability of our organisation.
Number of Agent of Mobile Banking 1.25 crore
In a further strategic effort to better prepare ourselves for the
future, the Bank’s previous IT-related divisions were restructured
Key features of CBS
and merged into two big IT working units –ICT Operations
Division and ICT Systems Division from the middle of 2015. Online and real-time services
Entrusted with the strategic responsibility to uphold the digital
Faster and accurate reporting
and tech-centered ambitions of the Bank, the divisions own
responsibility for the following. Potential 360° view of customer journey with the Bank
Auto bank reconciliation
Core Banking Solution (CBS)
Automated provisioning
Rupali Bank is the first state-owned commercial Bank to have Automated loan classification
achieved automation in banking. As a result of this technological
boost, the overall operating efficiency of the Bank has improved, Consolidated financial reporting
also ensuring transparency, while providing a large bouquet of Automated loan originating system (LOS)
convenient banking services to customers.

Under CBS, all branches of Rupali Bank have been brought

Bank's ICT Status
online with the result that customers receive streamlined, faster
and more efficient services than ever before. Further, while all Data Connectivity 572 Branches & 10 Divisional Offices and 27 Zonal Offices
branches have also been brought under real-time online banking
facility through CBS, new branches are being established with RTGS 572 Branches
CBS as well.
BEFTN Branches 572 Branches

The true hallmark of real-time online banking has enabled BACH Branches 409 Branches
Rupali Bank to offer its customer with full-fledged useful and ATM Booth
convenient features of all banking modules. Trade Finance, (Own Branded) 12 Branches

Treasury, Deposit, GL, Loan and Advance Module are now Remittance
572 Branches
facility Branches
available to augment the banking experience of our customers.
Live Branches
Meanwhile, transparency and accountability have also been under CBS
572 Branches
ensured, thus catapulting Rupali Bank into contributing to the
Total Branches 572 Branches
Digital Bangladesh vision of the Government as well.

186
 Rupali Bank Limited

Data Centre (DC) Alternate Delivery Channel

Rupali Bank is equipped with an international standard Data With the transition in banking operations to online CBS, the
Centre (DC), which enables various branches and divisions to Bank has accelerated a step forward in developing its Alternate
transmit unhindered flow of information and market intelligence Delivery Channel network, rescinding its old channel. The Bank
in a safe and secured manner to the Head Office. has thus deployed a high-quality modified channel of ATM/POS
network in strategic spots around the country.
The computing resources of the Bank (hardware, software
and telecoms equipment, etc.) have been installed to ease
information exchange among employees across the Bank. The
main items that have been installed in the DC include:

RISC-based servers
Network equipment
Storage
Database
Other devices from many renowned international brands
The live system originates out of the DC and all branches and
divisions of the Head Office are connected through redundant
telecoms links with the DC. Further, various world-class
application software installed in these two locations have made Further, with a view to offering customers authentic experience
it possible to process the information and make it available to all of card services, the Bank signed an agreement with the Q-Cash
the branches and divisions of the Head Office in an instantaneous Consortium. As a result, the Bank has successfully launched its
manner. As the processing, storage and dissemination of own-branded ATM and POS management system.
information are done centrally and simultaneously, employee
productivity has witnessed a sizeable increase with the ultimate Connection to NPSB
outcome of leading to higher organizational efficiency.
By establishing its own branded ATM and POS network, the
Data Recovery Centre (DRC) Bank has connected its ADC to the National Payment Switch
of Bangladesh, a common switching and payment gateway
Rupali Bank has set up a fully-equipped Disaster Recovery platform established by Bangladesh Bank. With this integration,
Center (DRC) at Narayangonj, Bangladesh. The DRC possesses the Bank’s customers are now able to withdraw money from
real-time data synchronization with the Data Center through their account through various ATM/POS terminals.
the modern data guard technology. This facilitates in sustaining
immediate business operations and systems with applications
via the same communication link available on the DRC, with the
result that data redundancy is achieved continuously between
the DC and DRC.

PCI DSS Compatibility

By deploying its own branded ATM/POS network, the Bank

will become PCI DSS (Payment Card Industry Data Security
Standard)-compatible, this ensuring the maximum security
standard to its card production and distribution system.

SMS Alerts

Our Bank’s SMS alert service provides instant notification on

customer’s transactions as and when they happen. Such a
round-the-clock service also helps customer to keep a track of V 3.2.1
their account. Further, every debit or credit transaction in our
customer’s account over a limit desired by him/her is intimated
via SMS. With SMS alert service, customers are always in a
position of awareness if any unauthorized access takes place. Own Branded ATM and POS Network
Additionally, SMS message alert also helps customers to know
their account balances. As a progressive financial services brand, Rupali Bank is now
keen to deploy its own branded ATMs at various suitable

Annual Report 2019 187

locations in order to acquire its own transactions as well as
transactions of other banks. This will bring the Bank transaction-
acquiring income and help spread brand awareness. Initially,
the Bank had installed 12 own brand ATMs in different locations
throughout the country. It now plans to establish 100 ATMs in
the near future.
Inauguration of own-branded ATM Booth at Mughda Branch,
Dhaka
Proprietary Debit Card
Rupali Bank offers own branded debit cards to all of its
customers, regardless of branch location. All customers around
the country can access a debit card issued in their favor to
withdraw cash from any bank’s ATM booths, as well as get the
facility to make bill payments to merchants equipped with POS
systems. Further, customers also get the facility to recharge their
mobile phone using Rupali Bank’s debit cards.
Bangladesh Automated Clearing House (BACH)
In compliance with Bangladesh Bank’s guidelines to automate
clearing of interbank instruments (including cheques and
instruments transfer) via Bangladesh Automated Clearing House
(BACH), Rupali Bank developed the following two separate
systems:
Bangladesh Automated Cheque Processing System
(BACPS)
Being a member of BACH, Rupali Bank provides automated
clearing facility to its 409 branches through several Truncation
Points (TPs) over the country. Recently, the Bank also developed
CBS-integrated Inward Clearing Module to ease clearing
operations at CBS branches. The Bank will take the necessary
steps to raise the number of BACH TPs as per request from its
branches.
Bangladesh Electronic Fund Transfer Network (BEFTN)
Rupali Bank is the largest acquirer of BEFTN network. The Bank
has already established electronic funds transfer facility in all its
572 branches. Further, we have decided to launch all our new
branches with BEFTN facility.
188
RTGS
Rupali Bank is the first among public sector banks to have
initiated RTGS services across all its branches. Bangladesh Bank
introduced RTGS on 29 October, 2015 for enabling real-time
gross settlement of interbank cash transactions. Rupali Bank
joined the RTGS network on 28 September, 2016. Today, all the
branches of the Bank are live under RTGS.
ICT Security Policy
A comprehensive ICT Security Policy was formulated with
technical assistance from BUET (Bangladesh University of
Engineering and Technology) in 2017 under “ICT Security
Policy of Rupali Bank Limited” Third Edition 2017. This policy
was prepared according to the latest security guidelines of
Bangladesh Bank issued in 2015. Implementation of the policy
throughout the Bank is underway, which will help to strengthen
the ICT structure of the Bank and the system running will be
more secured as well.
Own mail server
Email server hosted own data centre was established in June
2017. The Head office divisions, RBTA, divisional offices, zonal
offices and branches have been using own email server for email
exchanges. Each user has no limits in mail box size. Moreover,
any problems with the email server because of own hosting can
be resolved quickly. This introduction brought the following
benefits:
Higher privacy, as mails stored elsewhere have the least
possibility of infringement
Faster internal mail communications
Own defined virus and spam filters
Full control of services
RBL Website Home Page
Website of the bank
The Bank’s website, which is both convenient and user-friendly,
is regularly updated, thus contributing to continuous positive
branding. Our modern website helps build better relationships,
with customers able to review the Bank’s online services and
also giving feedback.
Video Conferencing System
RBL recently introduced state-of-the-art video-conferencing
system for enabling instant video communication between
different offices and field-levels with the top management.
Initially, the system has been established to connect the Head

Office, ten divisional offices and Rupali Bank Training Academy
(RBTA). Gradually the network will be extended.
This introduction brought the following benefits:
Rapid decision-making
Saving of time and money
Greater employee efficiency
Greater transparency and accountability
Video conferencing of RBL top management with field-level officials
IP Telephony System
Through IP telephony, employees can talk to all branches,
divisional offices, zonal offices and head office at no cost using
the Bank’s own network. This system is being implemented in
three steps. The first phase has been implemented at the head
office. Implementation will cover all divisional offices, zonal
offices and branches in the near future. Once the third phase is
implemented, the IP telephony system will be able to connect
calls to other mobile operators and land phones as well.
Utility Bill Collection System (Over the Counter
Software)
Over the counter (OTC) web-based utility software has been
launched to collect utility service providers (DESCO, DPDC,
BTCL, Dhaka WASA, Karnaphuli Gas Distribution Co. Ltd.) bills
through bank branches. The Bank started receiving KGDCL’s
gas bills from 13 March, 2019, and DPDC’s electricity bills from
18 March, 2019. Bill collection of Titas’ (Gas utility company)
customers will start soon across 145 branches of the Bank.
e-nothi implementation:
Electronic methods are currently being used in document
management in various countries to provide easy and short service
using information technology. In this context, Access to Information
(a2i) provides e-nothi software for implementing an effective
method for document management in all Government offices.
Rupali Bank Limited
e-nothi is an effective tool for managing official documents and
preserving records, thus contributing to the overall scheme of
Digital Bangladesh Vision-2021. Soon, e-nothi activities will be
launched in 10 divisions of the Bank on a pilot basis.
Central Vault Alarm System:
Central vault alarm system is a security apparatus. While a simple
camera system holds only video pictures, the central vault
alarm system has the capability to send pictures or notification
message alerts to multiple mobile numbers. It is possible to
transmit alert message with audio and video and also send alerts
through email. This is a system that connects via a USB/LAN port
placed on a branch vault or in a sensitive area. Such an alarm
system makes it possible to take appropriate action immediately.
Further, to provide a greater layer of security to the Bank's vault
room, a set of central vault alarm systems has been installed in
5 corporate branches. The central monitoring system is installed
adjacent to the security division of the head office for the
purpose of remote monitoring. Through this system, message/
audio/video of all activities carried out in the vault room will be
provided to the nearest police station, RAB office, zonal office,
divisional office, head office and the concerned branch officer.
It is expected that the central vault alarm system will play an
effective role in protecting the Bank's branch vaults.
Online application module for House Building Loan:
Online application module has been developed to provide house
building loans to government employees with applications
received by the Bank. To facilitate this process, software was
developed by the ICT Systems Division, which commenced
operations from October, 2018 onwards. With such a system, the
applicant can apply for loan online and can provide necessary
documents from home. This has added an extra dimension to
provide Bank’s services faster and save customers time and
money. Applicants have to fill out the online application form
to collect the tracking number initially by visiting Rupali Bank’s
website. On completion of the online application form, he/she
will be given an auto-generated tracking number, which can be
downloaded and printed.
NID Verification System
NID verification system has been launched to prevent money
laundering and terrorist financing. Through an agreement with the
Bangladesh Election Commission, NID verification activities are
being implemented in all branches of the Bank. Further, customer
account in the Bank is opened by verifying his/her NID at the branch.
AML Software on Demand Screening
Through this facility, customers are screened through AML
software before their bank account is opened. On demand
screening plays a huge role in preventing money laundering and
terrorist financing at banks.
Email Security Gateway and Advanced Threat Protection
In order to protect the Bank's email server from spam, phishing
and spoofing attacks, email security gateway and advanced
threat protection (ATP) have been implemented in April 2019.
Prior to this implementation, different types of viruses spread
to the server from different email accounts and were subject
to various problems, such as Denial of Service, Trojan Horse,
Virus, Worm and Spoofing. Resultantly, emails originating from
Annual Report 2019 189
rupalibank.org domain to other organizations would have been
blocked by the firewalls of other organisations. Implementing
the email security gateway and advanced threat protection
(ATP) solved this problem.
Head Office Support System
HO Support System is an online support system launched in
2017. It maintains daily hardware/network problem information.
With online support system, it is easy to see hardware/network
issues and troubleshoot problems in all divisions of the head
office. Further, senior officers can easily oversee the work of
their subordinates. Due to such an online system, pending work
has been greatly reduced and problems are being resolved in a
much faster timeframe.
Head Office Access Control:
Around 800 coworkers are employed in various divisions of
the head office. At present, employees have to sign-in their
attendance maintained in the concerned division. However,
arrival and departure times were not mentioned in the attendance
book. Moreover, since there is no electronic information about
the presence of employees, the annual presence/absence of
any employee has to be confirmed by looking at the attendance
book, which is a time-consuming affair. Preserving arrival and
departure information of all employees in an electronic system
will automatically confirm the annual attendance/absence of an
employee. Currently, access control devices have been installed
in various divisions of the head office.
Miscellaneous services
University admission fee can be collected online in different
universities.
e-Hajj system facilitates pre-registration and registration
process (fee collection) of Hajj by the Bank every year
through the Ministry of Religious Affairs’ portal.
Security money can be received of those participating in
tenders on e-Gp system through the Bank’s branches.
MICR cheque detection machine is being used in 12
corporate branches.
Many important in-house software have been developed as
per the requirement of different divisions of the head office.
Some of these include:
Human Resource Management Software
RBTA Enrolment System
Inventory Management System
Online Admission Fee Collection System
Foreign Exchange Import/Export Monitoring System
BACH-2 operation is now live.
Tender called for purchase of 4 sets routers, 2 sets next
generation firewalls, 2 sets DMZ-switches, 2 sets server farm
(data) switches, 2 sets WAN switches for connecting mobile
financial service system to Rupali Bank’s data center.
Live operation of airport foreign exchange management
software (Version 1.0) has been launched.
New hosting procurement for Rupali Bank’s website has
been completed.
Hospital bill collection software is now made live to receive
various bills of Mugada Medical College Hospital through
Rupali Bank, Mugda Branch.
190
Views from experts of Dhaka University have been received to
ensure active directory and domain controller, demilitarized
zone (DMZ), network security/ cyber security, etc.
Purchase completed to increase data center SAN Storage
10TB.
32 sets IP camera with 1-year video footage storage capacity
has been installed at local office of Rupali Bank.
10 PCs and 10 UPS have been purchased for storage for
emergency use.
CIB Reporting Software has been developed. UAT is
ongoing.
Collateral security information software has been
developed. UAT is ongoing.
MICR cheque processing software has been developed.
UAT is ongoing.
Additional modernisation plans to be implemented in
the near future
Performing Bank's IS audit, VA & PT, purchasing VA & PT
tools and acquiring ISO, PCI DSS certificate.
In addition to the 12 currently operated ATMs, the process
to purchase 100 more ATMs is ongoing to enhance the
quality of customer service and sustain the reputation of
the Bank.
Implementation of demilitarized zone (DMZ) and network
security/cyber security in the context of expert opinion of
Dhaka University.
Implementation of active directory and domain controller.
ERP (HRM, retirement benefit, legal, fixed asset
management, internal communication management, task
monitoring system management, finance & accounting,
procurement & inventory, business intelligence) software
procurement.
e-GP implementation.
Full implementation of AML screening software.
Facilitate over the counter bills of Titas Gas through Over
the Counter (OTC) software.
Purchase ISS software to assist with ISS reporting.
Develop case management system software.
Develop a new website for Rupali Bank Limited.
Purchase 100 MICR cheque detection machines.
Ensure digital presence through RFID (radio frequency
identification).
Purchase employee tracking service for few divisions of the
head office.
e-service Implementation Roadmap
Utility bill collection system
Internet banking system
Rupali Banking service through mobile app
Domestic money transfer service
Online fee collection
Online salary payment system
Agent banking system
e-filing
 Rupali Bank Limited

MOBILE BANKING
Rupali Bank, among all the state-owned banks,is the first to
provide mobile financial service in the country. The Bank is
providing mobile banking service under the brand name “Rupali
Bank Surecash”.
Since the inception of its MFS operation,the bank is dealing with
the disbursement of primary education stipend having a MoU
signed between Rupali Bank Ltd and the Ministry of Primary
and Mass Education. This year the bank has successfully
disbursed about Tk 1300 crore as primary education stipend
among 1.30 crore beneficiary mothers of 1.50 crore students
from 70,000 schools around the country. At the same time 1.25
lac sugarcane farmers of 15 Sugar mills under the authority of
Bangladesh food and sugar Industries Corporation are getting
their payment and subsidies through “Rupali Bank SureCash’
Mobile financial service. Different Government disbursements,
like aid to the poor and helpless laborers by Bangladesh Ministry
of Labour, aid to Lactating mothers and many other aids under
the umbrella of the Govt.’s safety net project are being disbursed
by Rupali Bank Surecash.
Ruapli Bank Surecash is dealing with more than 1200 schools,
colleges and other educational institutions in realizing their
tuition fees, exam fees etc. from their students. Besides, many
business firms like insurance, NBFI, Ride sharing Companies,
Service providing entities are using Rupali Bank Surecash MFS
to pay salaries and allowances to their employees and collecting
their bills and dues from their customers.
Rupali Bank Surecash is a full-flagged mobile financial system
having more than 200 distributors and 1.35 lac agents around
the country also offers all the traditional facilities prevailing
in the market along with those special assignments that have
differentiated it from other operators. Cash-in, Cash-out, money
transfer, mobile top-up, different utility bill payment i.e. WASA,
DESCO, Karnophully Gas Distribution Company, DPDC and
BTCLetc., can be done from Rupali Bank Surecash Mobile wallet.
The government’s dream to bring the banking facilities within the
grab of all citizens, even to the marginal un-privileged groups, is
perfectly marching with the dream of Digital Bangladesh. Rupali
Bank with its mobile financial service is working along with the
government to bring this dream come true by assuring banking
service to the farthest corner of the country and taking its pride
to be part of it.

MOBILE FINANCIAL SERVICES PROVIDED BY RUPALI BANK SURE CASH AT A GLANCE

CASH DEPOSIT/WITHDRAW FROM BRANCHES/AGENTS

Country wide all types of customers under the services Customers can withdraw amount from RBLBranch
can easily deposit amount to his/ her wallet from RBL SureCash Agent points.
Branch/ SureCash Agent points.

Primary stipend beneficiary also can withdraw money Sugar, Agriculture, BLWF (Bangladesh Labour Welfare
from RBL Branch/SureCash Agent points without any Foundation) and other allowances can be also
servicecharge. withdrawn from the RBL Branch/SureCash Agent points.

SEND MONEY

Person can send money to any The customer can send their Both the sender and the receiver
surecash wallet. money through USSD code by will get a notification after
dialing*495#. successful transaction.

Annual Report 2019 191

 MOBILE TOP-UP

Top Up option allows Rupali Bank SureCash To get this service you just need to dial *495# from any
customer’s to recharge their own mobile no or any mobile operator or using Rupali Bank Surecash apps
other mobile no they want. and select the top-upoption.

SALARY DISBURSEMENT

It is a process by which Corporate
Office/ organization can disburse
the salary of their employees
within a few moment in a hassle
free way.
Corporate Office/Organization will RBL Head Office will credit by
send the list of mobile wallet no debiting corporate account
and monthly salary/allowance to centrally by a batch process
their RBL account. system.

While disbursement is done the The employee/beneficiary can go

employee/beneficiary will receive to any RBL SureCash agent or RBL
an sms confirmation. branch to withdraw money.

E-COMMERCE

Rupali Bank SureCash customers
are currently purchasing through
online payment system with
touch based experience.
Customers can easily shop at It is ensuring better
Super shop outlets, shopping governance.
center, Mega mall and other POS/
ePOS counter using Rupali Bank
SureCash wallet.

TICKET PURCHASE

Customers can easily pay for bus, train and airline With the Rupali Bank SureCash solution, customers
tickets and receive confirmation by using their mobile can easily avoid standing in long queues and have
phone. confirmation of guaranteed tickets ahead of time.

192
 Rupali Bank Limited

ACADEMIC FEES PAYMENT

Parents or Students can themselves pay their academic and admission fees if they have a SureCash account.

STORE/PAYMENT PARTNER

Clients can now use Rupali Bank SureCash to swiftly The customer does not have to wait any longer for
go through express shopping counters by easily paying finding the exact amount in their mobile account or
the exact amount straight from their mobile. waiting for change from the cashier.

PAYROLL

Any business house (Garments,
FMCG, Insurance, NGO, MFI,
Superstore, Hotel, Transport,
Fashion house/ boutique
shop, Retail shop, etc.) can use
Rupali Bank SureCash mobile
banking network for payment
disbursement purpose.
By unveiling a modern payment Employees can save a trip
channel using SureCash network to the bank by easily using
which offers state of the art their mobile phone to
safety and reliability features, receive their salaries.
organizations now can offer top
notch payment services in real-
time.

GOVERNMENT ALLOWANCES
Rupali Bank SureCash offers distinct mobile banking services that our Government can benefit from Rupali Bank
SureCash can aid the government in various sectors such as:

Revenue collection-tax,VAT, car Agriculturalsubsidy disbursement- Utility service fee collection -

fitness fee, etc. Equipment, fertilizers, subsidy for Electricity, gas, water,etc.
farmers, etc.

Government payroll disbursement Government allowance Pension disbursement- Family,

- Government employees, disbursement-Freedom fighter, disability, retirement, service
contractors,advisors, etc. widow, student allowances,etc. pension,etc.

Annual Report 2019 193

 G2P PAYMENTS

Honorarium for Freedom Primary School Stipend Stipend disburse to the trainee
Fighters Programme teachers.

Salary of Primary School Incentive disbursement to the

Teachers farmers.

G2P COLLECTION

Land Offices collect their charge, tax Collection of admission fees, tuition fees and other
and fees charges of the government schools, colleges and
universities.

Municipalities collect allowance, various bills and provide Bill collection of Dhaka and Khulna WASA
other services for the staffs & officers of municipalities

B2P PAYMENTS

Salary disbursement to the teachers of schools, Schools, colleges and Polytechnic Institutes pay
colleges and universities. stipends to the students.

Corporate Office can disburse the salary of their Basis, SEIP and various organizations disburse their
employees and staffs. stipend to the trainees.

B2P COLLECTION

Utility bill collection of DESCO, DPDC, BTCL, West Zone Collection of all types of admission fees, tuition fees
Power Distribution Company Ltd, Dhaka WASA, Khulna and other academic fees of above 450 educational
WASA, Karnaphuli Gas Distribution Company Limited, institutes.
Sundarban Gas Company Ltd.

194
 Rupali Bank Limited

FUTURE PLAN AND RECOMMENDATIONS FOR RUPALI BANK SURECASH MOBILE

FINANCIAL SERVICES IN BANGLADESH

Mobile wallet interest scheme Digital KYC Sustainable infrastructures

Security of transactions Strategies for more MFS Grameen Bank realizing

friendly Bank Branches installments and disbursing loan
to their customers.

Rupali Bank SureCash at a glance

From 01 January 2019 to 31 December 2019

Number of Distributors 206 Total Government Payment 15,788,448,073.00

Number of Agents 135,355 Total Others nos. 7,834,337.00

Registered Customers 18,452,698 Total Others 317,967,189.00

Total Cash-in nos. 1,241,142 Total Ecommerce nos. 18,702.00

Total Cash-in nos. 10,415,756,466.00 Total Ecommerce Amount 7,569,170.00

Total Cash-out nos. 34,947,151.00 Total Recharge nos. 7,834,337.00

Total Cash-out nos. 25,074,283,670.00 Total Recharge Amount 317,967,189.00

Total P2P nos. 388,215.00 Total Shopping nos. 6,041.00

Total P2P Amount 367,713,239.00 Total Shopping Amount 92,798,775.00

Total Salary Disbursed nos. 2,465.00 Total Ticketing nos. 22.00

Total Salary Dis. Amount 22,234,817.00 Total Ticketing Amount 18,664.00

Total Utility Bill nos. 393,855.00 Total General nos. 34,036.00

Total Utility Bill Amount 511,395,451.00 Total General Amount 171,044,554.00

Total Merchant Payment nos. 3,004,537.00 Total Transaction nos. 86,202,005.00

Total Merchant Payment 5,109,411,833.00 Total Transaction Amount 57,607,210,738.00

Total Government Payment nos. 38,390,303.00

Annual Report 2019 195

Month wise Distributors, Agents & Customers -2019

20000000

18000000

16000000

14000000

12000000

10000000

8000000

6000000

4000000

2000000

0
January February March April May June July August September October November December
Distributor 191 198 195 198 185 182 184 185 185 199 206 206
Agent 126803 128049 129027 129783 130002 130476 130874 131483 132065 132966 134230 135355
Customer 15961633 15985816 15998842 16810763 18080753 18081058 18249146 18263385 18276706 18333436 18438159 18452698

Month Wise Transactions-2019

30000000

25000000

20000000

15000000

10000000

5000000

0
January February March April May June July August September October November December
Amount (in Thousand) 7447119.103 3856179.084 1792356.733 5159140.518 7540337.575 2909678.364 7602032.468 2193623.781 2306624.053 3970536.773 7125998.48 5703583.803
Transaction 13349572 7186268 880497 6275558 13424173 2289012 17741242 2865727 1107235 5936076 13319168 1827477

196

ECONOMIC
IMPACT REPORT
OUR STRATEGY TO CREATE VALUE
OUR BUSINESS MODEL
Rupali Bank is a relationship-oriented bank. This defines our
identity, and our purpose is to be the bank of choice for our
customers by offering best-in-class products and services across
both physical and digital channels, thus enabling a simplified,
pleasant and secure customer experiences. With a view to
ensure that we preserve our identity and advance our purpose,
we deploy our capitals optimally to create sustainable value for
our stakeholders.
A. DEPLOYING OUR CAPITALS OPTIMALLY…
1. FINANCIAL CAPITAL:
Supported by:
Strong internal capital generation with net profit growth of
44.09% in 2019 and stable core capital position with CET1
capital ratio of 5.63%.
Strong retail franchise generates our large customer
funding base, while our reputation allows access to
diversified wholesale funding sources.
2. INTELLECTUAL CAPITAL:
Built on:
Strong brand reputation given our long-running history
and wide presence across Bangladesh, bolstered by our
status as an esteemed state-owned commercial bank.
Integrated risk management framework with strong risk
ownership, encompassing strategy, systems, processes
and people.
Best-in-class online platform with positioning as amongst
the first public sector bank to launch a secure and scalable
digital banking platform.
3. MANUFACTURED CAPITAL:
Aimed at service delivery enhancements by:
Streamlining operational processes for achieving higher
efficiencies through automation and digitalisation.
Rupali Bank Limited
Easy access to our 572 fully-equipped branches and 12
ATM/CDM terminals located around the country.
4. HUMAN CAPITAL:
Empowered by our core values:
We have a diversified workforce of 5,641 employees
operating out of the majority of districts of Bangladesh.
We emphasise on developing talent through upskilling, by
organising learning programs and by building a sustainable
succession pipeline.
5. SOCIAL & RELATIONSHIP CAPITAL:
Our commitment to the communities we serve:
About 2.65% of our annual net profit is disbursed towards
impactful social responsibility programs.
We are committed to strengthening our stature as a leading
employer for youth desiring to pursue a career in banking
and finance.
B. TO CREATE SUSTAINABLE VALUE…
1. OUR VALUE CREATION FOCUS:
Our value creation strategy is aligned with our vision of
making banking accessible for all. We are focused on
creating sustainable value for our stakeholders by:
Maximising our potential in Bangladesh, a region with
a large and growing middle-class, yet under-banked
population, and growing trade activities arising from
the integration of the country with global supply
chains.
Focusing on making financial services accessible to
the public and amongst our customers, especially in
the CMSME and agri sectors.
Meeting the ever-evolving needs of our customers by
transforming ourselves through digital innovation to
serve in a fast, simple and secure manner.
Annual Report 2019 197
2. OUR VALUE CREATION STRATEGY:
At Rupali Bank, we are focused on emerging as a top public
sector bank and, towards meeting this objective, our value
creation strategy is anchored on our key pillars:
Become a top peoples’ bank: We aim to be a leading
retail and commercial financial service provider in
Bangladesh, leveraging our strong regional/rural
presence, banking expertise and growth opportunities.
Become a dependable financial partner: We aspire to
be the trusted financial partner that delivers strong
and diverse client solutions.
Become an innovation-centric financial institution:
We plan to continue delivering innovative client-
centric universal financial solutions, building on our
experience and expertise in banking.
Become the digital bank of choice: We aspire to be
the digital bank of choice amongst our customers in
Bangladesh by putting their preferences and needs
first and transforming to deliver next-generation
customer experiences.
3. OUR ROBUST GOVERNANCE STANDARDS:
In creating consistent stakeholder value, we abide by
our own ethics and values and operate within our well-
established governance framework.
Our robust governance structure supports strategic
decision-making, enabling us to balance our short-
and long-term objectives to ensure sustainable value
created for our business and the communities we serve.
Our diverse and knowledgeable Board provides
counsel and oversight to the senior management
team, which executes our strategy to drive value
creation and improve performance.
We anchor our practices and credibility on our strong
values and code of ethics
Our effective system of managing internal and external risks
safeguards our assets and stakeholder interests.
C. FOR OUR STAKEHOLDERS
1. OUR CUSTOMERS:
Strong and well-diversified product suite that meets a wide
range of customer requirements.
New client-centric digital innovations, such as Rupali Bank
Surecash, our mobile financial services (MFS) platform.
Growth of active MFS user base by 15.90% YoY duely
increased acceptability of Rupali Bank Surecash.
2. OUR INVESTORS:
Serve diligently and responsibly the public mandate of the
Government of Bangladesh, our largest shareholder.
Focus on meeting material information requirements of
our shareholders and stakeholders on a timely basis.
Full year 2019 dividend payout expected at BDT 207.08 mn.
3. OUR REGULATORS:
Compliance with all regulatory and statutory guidelines
and requirements.
198
Contributed BDT 3,423.00 mn in taxes in 2019.
4. OUR COMMUNITY:
Offering social services through our six ladies branches
located in five districts.
Fostering social awareness through slogans expressed
on all official envelopes, thus contributing to the causes
of education and literacy, discouraging dowry, engaging
in population control and popularizing green banking,
among others.
Dispensing Government allowance services under the
social safety net program.
Facilitating poverty alleviation by providing small-scale
credit to such micro-businesses as fishery, shrimp
cultivation, goat/sheep rearing, poultry, dairy and tree
plantation, etc., while also disbursing micro-loans against
crop stored in silos and to the handicapped, etc.
Contributed to save the environment with lending policies
and practice supportive of environmental preservation.
5. OUR EMPLOYEES:
BDT 4,797.78 mn disbursed as salaries and welfare benefits.
Focused on training and capacity development of co-
workers from across the Bank.
HOW WE DISTRIBUTE VALUE CREATED
At Rupali Bank, in fulfilling our commitment to our stakeholders,
we distribute the value created in relevant and meaningful ways.
For some stakeholder groups, the value distributed goes beyond
financial means. Stakeholders receive intangible benefits,
ranging from employee training and career development
support, to diverse community welfare initiatives that support
underprivileged and low-income households, in our effort to
foster a more sustainable ecosystem around our operations.
Value created in 2019 was distributed as follows:
BDT 355 mn
Retained profits to fund our
future growth plans
BDT 207.08 mn
Announced dividend for our
shareholders for 2019
BDT 3,423 mn
Taxes paid to the
Government
BDT
8,782.86 BDT 4,797.78 mn
Salaries and
mn welfare benefits

STAKEHOLDER ENGAGEMENT
Key stakeholders Engagement means
Conference calls and briefing
Website where all information
and material developments
are made available
Annual general meeting (AGM)
Investors /
shareholders Annual reports
Digital touch-points, which
include website and mobile
app
Physical branches and ATM/
CDM terminals
Customers
Customer satisfaction surveys
Reporting and periodic
updates to our central bank
Participation and contribution
to industry and regulatory
working groups and forums
Regulators
Consistency in employee
dialogue and engagement
Regular communication
channels
Employees
Social responsibility initiatives
Communities
Stakeholder objectives
Sustainable dividend
Resilient revenue growth
Cost management
Asset quality and credit
exposures
Operating landscape,
including competitive
environment
Fair pricing and
unambiguous terms
Enhancement of
customer service levels
and improvement in
efficiency for faster loan
TAT (turnaround time)
Expectations of
personalised solutions
Security and protection
against fraud
Effective management of
financial crime risks, such
as money laundering,
terrorism financing,
fraud, etc.
Management of data
privacy and cyber
security
Embedding ethical,
compliance and fostering
a risk-aware culture
Workforce futurisation
and embrace changing
operating landscape
Attraction and retention
of talent
Diversity, inclusivity and
meritocracy
Initiatives that have a
more far reaching and
sustainable impact
Impact of investments on
communities
Rupali Bank Limited
Our response
Strong and well-
experienced leadership
Longstanding market
experience with a
respectable track record
Diversified portfolio in
terms of sectors and
geographic presence
Continued to develop
competitively priced
product offerings
Enhanced customer
experience through
innovative digital
initiatives
Focused on addressing
customer needs and
grievances in the shortest
possible time
Continued with ongoing
enhancements to risk
management
Continuous review
and improvement
of our systems and
processes for compliance
enhancement
Strengthened
surveillance mechanisms
Continued strong
emphasis on talent
development
Continued to foster
diversity and inclusivity
that raised engagement
and productivity
Contribute to
environmental
preservation through
green banking
Engage in poverty
alleviation through small-
scale credit
Foster financial inclusion
through opening Tk 10
accounts for freedom
fighters, extremely poor
people and insolvent
disabled; Tk 50 for youth
farmers; and Tk 100 for
students
Annual Report 2019 199
MATERIAL MATTERS
following:
At Rupali Bank, we understand that to continually improve as an
organisation, we need to identify and understand the key topics
or material matters that are important to our stakeholders and
how these relate to the actions and decisions we make. Thus by
doing so, we can balance expectations and address issues that
matter to our stakeholders.
The importance of some issues vary over time, reflecting changes
in our internal priorities and broader operating environment,
along with evolving expectations of our stakeholders. However,
regulatory changes, surveillance on portfolio quality and
management of risks have consistently emerged as top issues.
Today, cyber security and digital trends are being seen with high
importance due to the changing nature of business with rapid
technological advancement in the financial and banking sector.
Data security and customer privacy are also emerging as crucial
to build customer confidence. Moving forward, we aim to further
improve our materiality assessment processes by deepening
engagement with our stakeholder groups.
Some of our major material matters in 2019 included the
Ensuring responsible credit underwriting and lending
Facilitating financial inclusion and empowerment
Managing regulatory changes and following compliance
guidelines
Reinforcing risk awareness and mitigation
Enhancing surveillance on our portfolio
Protecting our portfolio quality
Developing a robust talent and succession pipeline
Enabling workforce futurisation
Focusing on customer experience and transactional
security
Measuring the impact of our social investments
Managing our environmental impact

200
 Rupali Bank Limited

MAINTAINING ADEQUATE CAPITAL

Economic Impact Report Maintaining adequate capital

RBL is dedicated to deliver optimum value to customers,
employees, shareholders, stakeholders and the nation. The
business strategy is pivoted on achieving these goals.
Further, the Bank is focused on anchoring its business on
the 3 Ps – people, profit and planet, while also taking into
cognizance its ESG (environmental, social, governance) impact.
A major initiative expected to be sustained by the Bank includes
maintaining its capital buffers.
Maintaining adequate capital is an indication of financial
strength and stability of a bank. According to Basel-III Accord,
banks have to maintain adequate capital against risks to absorb
potential losses and ensure sustainability during adverse
conditions.
Rupali Bank maintains adequate capital to preserve safety of
capital, as well as ensure operational sustainability. RBL has
segregated its capital into three tiers, as per Bangladesh Bank's
guidelines, which is as follows:

Particulers 31 December, 31 December,

2019 2018
Capital adequacy
Common Equity Tier-I Capital 1,397.91 1,344.13
Tier-II Capital 1,167.23 870.82
Total Regulatory Capital 2,565.14 2,214.95
Required capital (10% of total risk weighted asset Tk 24,817.64 cr) 2,481.76 2,210.47
Capital excess / (short ) 83.38 4.48
*Capital to Risk Weighted Assets Ratio (CRAR) 10.34% 10.02%
Common Equity Tier-I Capital
Paid up capital 414.17 376.52
Share money deposit 680.00 680.00
Statutory reserve 344.30 325.17
General reserve - -
Retained earnings 39.65 41.01
Sub Total 1,478.12 1,422.70
Deductions (Deferred Tax assets) (65.71) (67.20)
Intangible Assets (Software) (14.50) (11.38)
Total Common Equity Tier-I Capital 1,397.91 1,344.12
Tier-II Capital
General provision (1% to 5% of UCL and (OBI) 567.23 226.34
Asset revaluation reserve (50%) 155.42 155.42
Revaluation reserve for securities (HTM & HFT) (50%) 39.15 39.15
Subordinated bonds 600.00 600.00
Revaluation reserves for equity instrument up to 10% 27.82 27.82
1,389.62 1,048.73
Less: 100% of Revaluation reserves for Fixed Assets, Securities & Equity Securities (As per Basel-III) (222.38) (177.91)
Total 1,167.24 870.82
Total Tier-I & Tier-II Capital 2,565.14 2,214.95
Required capital
Total assets including off-balance sheet items 64,754.71 56,781.56
Total risk weighted assets 24,817.64 22,104.71
Required capital being 10% of total risk weighted assets 2,481.76 2,210.47

Annual Report 2019 201

VALUE ADDED STATEMENT
Value added statement reflects the value created and distributed among different stakeholders of the bank. Value added by the Bank
stood at Tk 620.20 cr as of 31 December 2019 as against Tk 573.16 cr as of 31 December 2018.

2019 2018
Particulars of Income In percent (%) In percent (%)
Amount Amount
(i) Income from banking services 3,001.10 2,655.76
(ii) Less: Cost of services & supplies 2,283.35 1,845.02
(iii) Value added by banking services; (i-ii) 717.75 810.74
(iv) Add. Banking income - -
(v) Less: Amortization loan loss provisions & other
provision except incentive bonus 97.55 237.58
Total valve added (iii+iv-v) 620.20 573.16
Particulars of Distribution
(a) Distribution of value addition
To Employees as salaries and allowances 480.04 77.40% 467.11 81.50%
To govt. as Income Tax 41.04 6.62% 34.00 5.93%
To Statutory reserves 19.14 3.09% 14.38 2.51%
To General reserves - - - -
(b)To expansion and growth
Retained profit 35.50 5.72% 23.54 4.11%
Depreciation 44.49 7.17% 34.12 5.95%
Total Distribution (a+b) 620.20 100.00% 573.16 100.00%

Distribution of Value Addition, 2019 Distribution of Value Addition, 2018

480.04 467.11

41.04 35.50 44.49 34.00 34.12

23.54
Employees Income Tax Retained Depreciation Employees Income Tax Retained Depreciation
as salaries profit as salaries profit

202
 Rupali Bank Limited

ECONOMIC VALUE ADDED STATEMENT

Economic Value Added or EVA is the value created in excess of the required return of an organisation’s investors. Simply put, EVA is
the profit earned by the firm less the cost of financing the firm's capital. The idea is that value is created when the return on the firm's
economic capital employed is greater than the cost of that capital.

31 December, 2019 31 December, 2018 31 December, 2017

Shareholders’ equity at year end 1687.6 1707.69 1327.17
Add: Cumulative provision for loans & OBI 1571.56 1478.05 1319.92
3259.16 3185.75 2647.09
Average shareholders' equity 3222.46 2916.42 2441.71
Cost of equity (%) 5.00% 10.00% 24.00%

Earnings 31 December, 2019 31 December, 2018 31 December, 2017

Profit after tax 54.64 37.92 49.91
Add : Provisions for loans and other during the year 97.55 237.58 390.61
Less : Written off loan recovered during the year (5.51) (28.10) (10.02)
146.68 247.40 430.50

Average cost of equity 5.00% 10.00% 24.00%

Cost of average equity 20.71 37.65 72.87
EVA 125.97 209.75 503.37

Economic Value Added (Amount in crore)

503.37

119.94 125.97
209.75

(164.38)
2015 2016 2017 2018 2019

Annual Report 2019 203

MARKET VALUE ADDED STATEMENT
Market Value Added (MVA) is the amount derived from the difference between the market capitalization and book value of shares
outstanding. It signifies the enhancement of financial solvency as perceived by the market. Hence, increasing MVA or increasing
shareholder wealth is the primary goal of any business and the reason for its existence.

Market Value Added = Market Value - Capital Invested

Market Value Added Statement

Particulars 2019 2018 2017

Face Value per Share 10.00 10.00 10.00

Market value per Share 30.25 35.80 66.20

No. of Shares outstanding 414,168,632 376,516,939 303,642,693

Total market capitalization 12,632,143,276 13,479,306,416 20,101,146,277

Book value of paid-up 4,141,686,320 3,765,169,390 3,036,426,930

Market Value Added 8,490,456,956 9,714,137,026 17,064,719,347

Market value added (Amount in crore)

1,706.47

849.05
971.41
536.28
607.29

2015 2016 2017 2018 2019

204
 Rupali Bank Limited

MAINTAINING LIQUIDITY
Taka in cr

Particulars Upto 1 month 1-5 years More than 5 years Total

Assets

Non-Interest earning assets 3,794,614,403 23,128,710,268 36,458,374,572 63,381,699,243

Interest earning assets 73,671,763,493 276,096,354,559 84,099,502,881 433,867,620,933

Total Asset 77,466,377,896 299,225,064,827 120,557,877,453 497,249,320,176

Liabilities

Interest bearing Liability 61,885,698,084 336,741,496,333 28,062,869,021 426,690,063,438

Non-Interest bearing Liability 5,072,572,765 48,610,672,188 - 53,683,244,953

Total Liability 66,958,270,849 385,352,168,521 28,062,869,021 480,373,308,391

Maturity Gap 10,508,107,047 (86,127,103,694) 92,495,008,432 16,876,011,785

Annual Report 2019 205

206
 Rupali Bank Limited

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Annual Report 2019 207

 SHAREHOLERS'
INFORMATION
FIVE-YEAR PERFORMANCE
OF RBL AT A GLANCE
(Amount in crore)

Particulars 2019 2018 2017 2016 2015

Income statement

Interest income 1,872.34 1,782.80 1,684.22 1,350.91 1,532.29

Interest expenses 1,870.46 1,530.06 1,329.01 1,526.34 1,705.59

Net interest income 1.88 252.74 354.59 (175.43) (173.30)

Non-Interest income 1,128.76 872.96 864.00 809.27 898.11

Non-interest expenses 937.42 816.20 710.77 722.61 474.61

Net Non-interest income 191.34 56.76 153.92 86.65 423.50

Profit before provision and tax 193.23 309.50 508.52 (88.78) 250.20

Provision for loans and others 97.55 237.58 390.61 0.00 144.12

Profit after provision before tax 95.68 71.92 117.91 (88.78) 106.08

Provision for tax 41.04 34.00 68.00 37.08 82.58

Profit after tax 54.64 37.92 49.91 (125.86) 23.50

Balance Sheet

Authorized capital 700.00 700.00 700.00 700.00 700.00

Paid-up capital 414.17 376.52 303.64 276.04 240.03

Total shareholders' equity 1,687.60 1707.69 1,327.17 1,165.64 1,270.65

Deposits 41,462.43 38,954.95 31,971.88 27,911.60 25,382.96

Borrowing 1,206.58 700.77 353.75 133.19 147.98

Other liabilities 5,368.32 4965.57 4,588.22 4,200.42 3,253.38

208
 Rupali Bank Limited

(Amount in crore)

Particulars 2019 2018 2017 2016 2015

Total liabilities 48,037.33 44621.29 36,913.85 32,245.21 28,784.33

Investments 10,364.62 8233.65 6840.02 7,965.12 8,265.42

Loans & advances 30,672.40 24749.06 20,667.27 17,515.04 14,251.50

Property, plant & equipment 1,432.74 1423.10 1430.70 1,412.14 1,419.40

Other assets 2,465.68 2511.39 2,111.91 1,829.25 1,589.49

Net current assets 26,238.45 25858.93 21,227.82 17,450.08 12,981.48

Earning assets 37,817.33 35273.85 28,701.82 25,252.41 22,058.06

Total assets 49,724.93 46328.98 38,241.02 33,410.85 30,054.98

Capital Measures

Total risk weighted assets 24,817.64 22,104.71 19,959.60 17,697.74 14,964.72

Core capital (Tier-I) 1,397.91 1,344.13 996.71 890.81 1,102.00

Supplementary capital (Tier-II) 1,167.23 870.82 306.17 292.83 385.49

Total capital 2,565.14 2,214.95 1,302.88 1,183.65 1,487.49

Required capital 2,481.76 2,210.47 1,995.96 1,769.77 1,496.47

Capital excess/ (shortfall) 83.37 4.48 (693.08) (586.13) (226.66)

Foreign Exchange Business

Export 2,689.27 2,600.20 2,298.97 2,500.45 2,162.78

Import 15,401.83 11,402.15 13,210.01 10,801.36 11,987.70

Remittance 2,256.92 1,717.32 1,752.20 1,652.52 1,850.32

Other Information

Number of employee 5,641 4,929 5,157 5,438 5,646

Officers 3,906 3,481 3,609 3,757 3,969

Staff 1,735 1,448 1,548 1,681 1,677

Other information

No. of workstations 25 25 25 25 25

No. of corporate branches 55 55 55 55 55

No. of foreign correspondence 182 337 444 444 462

Number of branches 572 568 563 562 554

No. of shareholders 6,254 7,990 6,165 4,897 5,268

Annual Report 2019 209

KEY FINANCIAL RATIOS
AND PERFORMANCE
(Amount in crore exept percentage)

Particulars 2019 2018

Capital Measures

Capital adequacy ratio 10.34% 10.02%

Tier-I capital 5.63% 6.08%

TIER-11 capital 4.70% 3.94%

Liquidity and Solvency Ratios

Current ratio 0.75:1 0.79: 1

Return on capital employed 2.31% 1.58

Debt equity ratio 28.46 26.13

Cash flow liquidity ratio (0.54) 0.54

Liquid assets to Earning assets 69.38% 73.31%

Loans & advances to Deposit ratio 73.98% 63.53%

Loans & advances to Total asset ratio 61.68% 53.42%

Provision to Total loans & advances 5.03% 5.89%

Dividend Ratio

Stock dividend 5% 10%

Profitability and Performance Ratios

Earnings before provision & tax 193.23 309.50

Price earnings ratio 23.12 35.55

Net interest income ratio 6.28% 9.52%

Net profit ratio 1.82% 1.43%

Cost to Income ratio 93.56% 88.35%

Efficiency ratio 6.44% 11.65%

Assets utilization ratio 76.05% 76.14%

Return on Assets (ROA) after tax 0.03% 0.02%

Return on Equity (ROE) (before provision & tax) 11.38% 20.40%

Return on Equity (ROE) (after provision & tax) 0.80% 0.62%

Return on Investment (ROI) 8.42% 7.81%

210
 Rupali Bank Limited

(Amount in crore exept percentage)

Particulars 2019 2018

Non-interest expenses to Total assets 1.89% 1.76%

Interest margin to Total assets 0.004% 0.55%

Interest margin to Earning assets 0.005% 0.72%

Net asset value per share 40.75 41.23 (restated)

Total classified loans to Total loans 16.15% 19.21%

Cost of fund 6.81% 6.82%

Operating Performance (Income statement)

Total revenue 3,001.10 2655.76

Operating profit 193.23 309.50

Profit before tax 95.68 71.92

Profit after Tax 54.64 37.92

Earnings per share (EPS) (Tk) 1.32 0.92 (restated)

Financial Position (Balance Sheet)

Shareholders' fund 1,687.60 1707.69

Property, plant & equipment 1,432.74 1423.10

Net current assets 26,238.45 25858.93

Current liabilities 34,981.79 32698.66

Long-term liability 13,055.54 11922.63

Business Ratio/ Information

Operating cost-efficiency ratio 6.44% 11.65%

Return on asset 0.03% 0.02%

Cost/income ratio 93.56% 88.35%

Net asset value per Share (Restated) 40.75 45.36%

Profit per employee 0.03% 0.06%

Capital adequacy ratio 10.34% 10.02%

Cash reserve ratio/ Liquid asset ratio 5.61% 5.86%

Liquidity coverage ratio (LCR) 154.52% 423.22%

Efficiency ratio 32.22% 29.68%

Dividend cover ratio 263.84% 100.72%

Net stable funding ratio (NSFR) 95.53% 102.24%

Annual Report 2019 211

FINANCIAL HIGHLIGHTS OF RBL IN 2019
(Amount in crore)
LOANS &
DEPOSITS INVESTMENT
ADVANCES

2019 41,462.43 2019 30,672.40 2019 10,364.62

2018 38,954.95 2018 24,749.06 2018 8,233.65
2017 31,971.88 2017 20,667.27 2017 6,840.02
2016 27,911.60 2016 17,515.04 2016 7,965.12
2015 25,382.96 2015 14,251.50 2015 8265.42

OPERATING
PAID-UP CAPITAL TOTAL ASSETS
PROFIT

2019 193.23 2019 414.17 2019 49,724.93

2018 309.50 2018 376.52 2018 46,328.98
2017 508.52 2017 303.64 2017 38,241.02
2016 (88.78) 2016 276.04 2016 33,410.85
2015 250.20 2015 240.03 2015 30,054.98

NO. OF CBS
COST OF FUND COST OF DEPOSIT
BRANCHES

2019 572 2019 6.81% 2019 4.66%

2018 568 2018 6.82% 2018 4.69%
2017 563 2017 6.32% 2017 4.41%
2016 506 (563) 2016 7.62% 2016 5.49%
2015 - 2015 8.02% 2015 7.29%

TOTAL CAPITAL EMPLOYEES RATE OF CL

2019 2,565.14 2019 5,641 2019 16.15%

2018 2,214.95 2018 4,929 2018 19.21%
2017 1,313.81 2017 5,157 2017 23.41%
2016 1,183.65 2016 5,438 2016 20.64%
2015 1,269.81 2015 5,646 2015 17.00%

FOREIGN
EXPORT IMPORT
REMITTANCE

2019 2,689.27 2019 15,401.83 2019 2,256.92

2018 2,600.20 2018 11,402.15 2018 1,717.32
2017 2,298.97 2017 13,210.01 2017 1,752.20
2016 2,500.45 2016 10,801.36 2016 1,652.52
2015 2,162.78 2015 11,987.70 2015 1,850.32

212
 Rupali Bank Limited

HORIZONTAL AND VERTICAL ANALYSIS

Operating Performance

2019

2018

2017

2016

2015

-20% 0% 20% 40% 60% 80% 100%

Total Revenue Operating Profit Profit befor tax Net profit after taxes EPS

Operating Performance

EPS

Retained Earnings

Reserve Fund & Provision for Taxation

Total profit after Taxes

Provision for Investment including OBS & Other Assets

Profit Before Tax & Provision

Administrative & Other Expenses

Total Operating income

Intt. Paid to Depositors

Total Revenue

-60% -40% -20% 0% 20% 40% 60% 80% 100%

2015 2016 2017 2018 2019

Annual Report 2019 213

HORIZONTAL AND VERTICAL ANALYSIS
Statement of Financial Position(Balance Sheet)

2019

2018

2017

2016

2015

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Shareholders' Fund Property Plant & Equipment Net Current Asset Long Term Liabilities/ Curr. Liabilities

Balance Sheet Analysis

Long Term Liabilities/

13,539.53 25,466.99 28,888.74 32,698.66 34,981.79
Curr. Liabilities

Net Current Asset 12,981.49 17,450.08 21,227.80 25,858.93 26,238.45

Property Plant &

1,419.40 1,412.14 1,430.69 1,423.10 1,432.74
Equipment

Shareholders' Fund 1,270.65 1,165.64 1,327.17 1,707.69 1,687.60

2015 2016 2017 2018 2019

214
 Rupali Bank Limited

GRAPHICAL PRESENTATION
(Amount in crore)
Loans & advances Deposit
30,672.40 41,462.43
38,954.95
24,749.06
31,971.88
20,667.27
27,911.60
17,515.04
25,382.96
14,251.50

2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

Shareholders' Fund Operating profit

508.52
1,707.69 1,687.60

309.50
250.20

193.23
1,327.17
1,270.65
1,165.64
2015 2016 2017 2018 2019

(88.78)
2015 2016 2017 2018 2019

Profit after tax Non interest income

54.64 1,128.76
49.91
37.92 898.11
23.50
872.96
864.00
2015 2016 2017 2018 2019 809.27

(125.86) 2015 2016 2017 2018 2019

Non-performing loans Market price per share

4,614.57 66.20

4,428.85

4,582.06
35.80
3,484.85
32.30 32.00
2,341.76 30.50

2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

Annual Report 2019 215

GRAPHICAL PRESENTATION
Current Ratio Cost-Income ratio (%)
104.11
1.46
93.56
0.98 0.79 89.71
0.75 88.35
0.73
80.05

2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

Earnings per share Return on equity (%) (After Tax)

1.33 1.32 2.52%

0.92
1.00%
0.85
2016 0.80%
2015 2017 2018 2019 0.62%

2016
2015 2017 2018 2019

(4.14) (2.58%)

Net asset Return on shareholders' fund (Befor Tax & Provision)

1,707.69 1,687.60 40.80%

1327.17
1270.65
1165.64 19.69% 20.40%

11.38%

2016
2015 2017 2018 2019

2015 2016 2017 2018 2019 (7.62%)

216
 Rupali Bank Limited

GRAPHICAL PRESENTATION
Stock performance (%) Net asset value per share
24%

15% 41.23
40.03 40.75
38.39
10% 10%

35.25
5%

2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

Net Interest Income Ratio Operating revenue

3,001.10
13.78
2,655.76
9.52
2,548.22
6.28
2,430.40
2,160.18
2015 2016

2017 2018 2019

(7.13)
(8.12) 2015 2016 2017 2018 2019

Capital Adequacy Ratio Profit before tax

54.64
10.34
10.02
49.91
8.49
37.92
6.69 6.53 23.50

2015 2016 2017 2018 2019

2015 2016 2017 2018 2019

(125.86)

Annual Report 2019 217

SEGMENT INFORMATION
Segmentation of Total Revenue Segmentation of Result
Total Income 3001.10
Cash in hand and Other assets
balance with other 2465.68
bank's& Fls, 4789.49
Total
Net Profit After
Expenditure
Fixed assets Tax 54.64
2807.87
1432.74

Investment Loans and advances Provision for Provision

10364.62 30,672.40
Taxation 41.04 97.55

Segmented Capital Division Wise Profit

263.86
9%
20%

163.89
140.19
103.12
25%

95.15

73.80
68.18

59.16

54.72

28.01
13.15
4%
40%
2%

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Statutory Reseve Share Money Deposit Others Kh

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Ra
Ra

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Asset Paidup Capital Revaluation Reserve

Lo
Ch

Dh

My
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Division Wise Loans & Advances Divison Wise Deposit

3%

9% 1% 3% 6% 4%
2% 13%
5%
11% 5% 7%
40%
5%
12%
20%

4% 13% 30%
1%
3% 3%

Barishal Chattogram Dhaka North Dhaka South Barishal Chattogram Dhaka North Dhaka South
Khulna Cumilla Rangpur Mymensingh Khulna Cumilla Rangpur Mymensingh
Rajshahi Sylhet Local Office Rajshahi Sylhet Local Office

Loans and Advances Deposit

8%
21%

79%
92%

Urban Rural Urban Rural

218
 Rupali Bank Limited

PROFITABILITY, DIVIDEND
AND LIQUIDITY RATIOS
Current Ratio Gross Profit Ratio

1.46 13.78
0.98 0.79
0.75
0.73 9.52

8.12

7.13

0.06

2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

Price Earning Ratio Debt Equity Ratio

49.94
28.46
26.13
39.10
37.94 22.65
23.12
17.29 17.32

2016

2015 2017 2018 2019

(7.02)
2015 2016 2017 2018 2019

Market Price of Share

Return on Capital Employed
66.20
9.92

35.80
32.30 32.00
30.50

3.14

2.31
1.66
1.58

2015 2016 2017 2018 2019

2015 2016 2017 2018 2019

Earning Per Share Profit before Provision & Tax

508.52
1.33 1.32
0.92 309.50
0.85
250.20
193.23

2015 2016 2017 2018 2019

(4.14)

(88.78)
2015 2016 2017 2018 2019

Annual Report 2019 219

DISTRIBUTION OF SHARES IN 2019
Number of Shares
Particulars
As on 31 December 2019 As on 31 December 2018

General Public & Institutions 40,641,482 36,946,802

Government 373,527,150 339,570,137

Total 414,168,632 376,516,939

Shares held by Directors as on 31 December 2019

The pattern of shareholding along with name-wise details of

01. Parent/Subsidiary/Associated Companies and other related parties : Nil

02. Shareholding of Directors as on 31. 12. 2019

SI . Percent of Shareholding
Name of Directors Position
No. as on 31-12-2019
01. Mr. Monzur Hossain, MP Chairman Nil

02. Mr. Arijit Chowdhury Director Nil

03. Mr. A K M Delwer Hussain, FCMA Director Nil

04. Mr. Md. Rizwanul Huda Director Nil

05. Mr. Md Khalilur Rahman Director Nil

06. Mr. Mohammad Delwar Hossain Director Nil

07. Mr. Mohammad Abul Baset Khan Independent Director Nil

08. Mr. Md. Obeyed Ullah Al Masud Managing Director & CEO Nil

03. Directors as on 31 March 2020

SI . Percent of Shareholding
Name of Directors Position
No. as on 31-03-2020
01. Mr. Monzur Hossain, MP Chairman Nil

02. Mr. Arijit Chowdhury Director Nil

03. Mr. A K M Delwer Hussain, FCMA Director Nil

04. Mr. Md. Rizwanul Huda Director Nil

05. Mr. Md Khalilur Rahman Director Nil

06. Mr. Mohammad Abul Baset Khan Independent Director Nil

07. Mr. Md. Obeyed Ullah Al Masud Managing Director & CEO Nil

220
 Rupali Bank Limited

04. Distribution of Shareholders

No. of Shares % of Share

Particulars
2019 2018 2019 2018

General Public & Institutions 40,641,482 36,946,802 9.81 9.81

Government 373,527,150 339,570,137 90.19 90.19

Total 414,168,632 376,516,939 100.00 100.00

05. Shareholding of MD, CFO, Company Secretary & Head of Internal Control & Compliance

SL. NO. Name of Executive & Others % of Share holding as on 31-12-2019

01. Managing Director & CEO and his spouse and minor children Nil

02. CFO and his spouse and minor children Nil

03. Company secretary and his spouse and minor children Nil

04. Head of Internal Control & Compliance and his spouse and minor Children Nil

06. Top five salaried executives other than MD, CFO, Company Secretary & Head of Internal Control & Compliance

SL. NO. Name of Executive & Others % of Share holding as on 31-12-2019

01. Mr. Mohammad Jahangir Alam, DMD Nil

02. Mr. Khondoker Ataur Rahman, DMD Nil

03. Mr. Arun Kanti Paul, DMD Nil

07. Shareholders holding 5% or more voting right: Government of the People's Republic of Bangladesh

Annual Report 2019 221

MARKET PRICE INFORMATION 2019
DSE
Month
High Taka Low Taka Closing Price Volume

January 19 36.10 36.10 43.60 16,523,759.00

February 19 38.10 38.10 39.20 4,464,026.00

March 19 37.70 37.70 43.70 11,904,500.00

April 19 40.40 40.40 40.80 3,522,479.00

May 19 35.10 35.10 38.90 3,879,887.00

June 19 37.50 37.50 37.80 2,186,149.00

July 19 33.60 33.60 33.80 1,168,356.00

August 19 33.60 33.60 33.80 753,583.00

September 19 31.60 31.60 33.70 1,915,559.00

October 19 27.90 27.90 28.60 1,882,984.00

November 19 28.50 28.50 30.70 2,182,998.00

December 19 28.60 28.60 30.50 2,831,220.00

DSE
Month
High Taka Low Taka Closing Price Volume

January 19 46 36.4 43.1 1840857

February 19 44.9 39.4 39.6 221254

March 19 47.2 38 43.4 696329

April 19 45.3 40.1 41 231753

May 19 41.9 36.7 38.6 321268

June 19 41.4 37.2 38 201728

July 19 37.6 31.8 34 80998

August 19 37 31.8 33.4 36719

September 19 35 32.1 34 66753

October 19 32.8 28 28.3 51284

November 19 31.2 28.6 30.8 106129

December 19 34.8 28 30.9 112913

222
 Rupali Bank Limited

Market Information of Rupali Bank Ltd 2019

50.00 20,000,000.00

40.00
15,000,000.00

30.00
10,000,000.00
20.00

5,000,000.00
10.00

0.00 0.00

Low Price High Price Closing Price Traded Volume

Market Information of Rupali Bank Ltd. in 2019 in CSE

50 47.2 2000000
1840857 44.9 45.3
45 46 43.4 1800000
43.1 41 41.9 41.4
39.6
40 38.6 1600000

Total Traded Volume(shares)

38 37.6 37
39.4 40.1 35 34.8
High,Low & Close Price

35 36.4 38 36.7 37.2 34 33.4 34 32.8 31.2 1400000

30.8 30.9
30 28.3 1200000
31.8 31.8 32.1
28 28.6 28
25 1000000
20 696329
800000
15 600000
10 321268 400000
221254 231753 201728
5 106129 112913 200000
80998 36719 66753 51284
0 0

TotalVolume(Shares) ClosePrice MonthHigh MonthLow

Annual Report 2019 223

Close Price of Rupali Bank Ltd. in 2019 in DSE

50

40

30
Close Price

20

10

Close Price of Rupali Bank Ltd. in 2019 in CSE

50

40

30
Close Price

20

10

224
 Rupali Bank Limited

FINANCIAL CALENDAR
Quarterly Results
Audited consolidated results for the year ended 31 December 2019 Announced on 28 June 2019
Unaudited consolidated results for the 1ST quarter ended 31 March 2019 Announced on 13 May 2019
Unaudited consolidated results for the half-year ended 30 June 2019 Announced on 23 July 2019
Unaudited consolidated results for the 3rd quarter ended 30 September 2019 Announced on 23 October 2019

Dividends for the year 2018

Distribution of share dividend of 10% in respect of financial year 31 December 2018 Entitlement date 23 July 2019
Notice of Annual General Meeting 21 May 2019
Annual General Meeting 17 June 2019

Other Information

Exchange controls and other limitations affecting equity security holders

Non-residents can buy and sell RBL's share and transfer the dividends after complying with Foreign Exchange Transaction
Guidelines 1996 and SEC Rules.

Stock Details

Quarterly Results DSE CSE

Stock Symbol RUPALI BANK RUPALI BANK
Company Code 11107 22005
Listing Year 1986 1995
Market category A A
Electronic share Yes Yes
Market lot 1 1
Total number of securities 414,168,632 414,168,632

Availability of information about RBL

Annual Report 2019 and other information about RBL may be viewed on RBL website : www.rupalibank.org RBL provides copies of
Annual Reports to the Bangladesh Securities and Exchange Commission (BSEC), Bangladesh Bank, Dhaka Stock Exchange (DSE) and
Chittagong Stock Exchange (CSE) for their reference.

Investors may read them at their public reference room or library.

Investors' Inquiries and Communication

Any queries relating to shareholdings, for example, transfer of shares, changes of name and address and payment of dividend should be
sent to the following address:

Company Affairs & Share Division Rupali Bank Limited

Phone: 880-2-9559505

Fax: 880-2-9569158

E-mail: ho-share@rupalibank.org Website: www.rupalibank.org

Annual Report 2019 225

226
 Rupali Bank Limited

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Annual Report 2019 227
HUSSAIN FARHAD & CO. K. M. HASAN & CO.
Chartered Accountants Chartered Accountants

INDEPENDENT AUDITORS’ REPORT

To the Shareholders of Rupali Bank Limited
Report on the Audit of the Consolidated and Separate Financial Statements

Opinion

We have audited the consolidated financial statements of Rupali Bank Limited and its subsidiaries (the “Group”) as well as the separate
financial statements of Rupali Bank Limited (the “Bank”), which comprise the consolidated and separate balance sheets as at 31 December
2019 and the consolidated and separate profit and loss accounts, consolidated and separate statements of changes in equity and consolidated
and separate cash flows statement for the year then ended, and notes to the consolidated and separate financial statements, including a
summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements of the Group and separate financial statements of the Bank give a true
and fair view of the consolidated financial position of the Group and the separate financial position of the Bank as at 31 December 2019, and of
its consolidated and separate financial performance and its consolidated and separate cash flows for the year then ended in accordance with
International Financial Reporting Standards (IFRSs) as explained in note 02.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further
described in the Auditors’ Responsibilities for the Audit of the Consolidated and Separate Financial Statements section of our report. We
are independent of the Group and the Bank in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for
Professional Accountants (IESBA Code), Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Bank, and we have fulfilled
our other ethical responsibilities in accordance with the IESBA Code and the Institute of Chartered Accountants of Bangladesh (ICAB) Bye Laws.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Matter

The financial statements of Group for the year ended December 31, 2018 were audited by A. Wahab & Co., Chartered Accountants and Mahfel Huq
& Co., Chartered Accountants; who expressed an unmodified opinion on those financial statements on April 30, 2019.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated and separate
financial statements of the current period. These matters were addressed in the context of our audit of the consolidated and separate financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Risk Our response to the risk

Measurement of provision for loans and advances
The process for estimating the provision for loans and advances portfolio We tested the design and operating effectiveness of key controls
associated with credit risk is significant and complex. focusing on the following:

For the individual analysis, these provisions consider the estimates of Tested the credit appraisal, loan disbursement procedures,
future business performance and the market value of collateral provided monitoring and provisioning process;
for credit transactions.
Identification of loss events, including early warning and
For the collective analysis, these provisions are manually processed that default warning indicators;
deals with voluminous databases, assumptions and calculations for the
provision estimates of complex design and implementation. Reviewed quarterly Classification of Loans (CL);
At year end the Group reported total gross loans and advances of BDT Reviewed the Bangladesh Bank’s letter no. DBI-
307,201 million (2018: BDT 247,995 million which was rearranged from 2(OUB-4)/2419/2020-855, dated 24, June 2020 for loan loss
247,737) and provision for loans and advances of BDT 15,413 million provision of the bank.
(2018: BDT 14,583 million).
Our substantive procedures in relation to the provision for loans
We have focused on the following significant judgements and estimates
and advances portfolio comprised the following:
which could give rise to material misstatement or management bias:
Reviewed the adequacy of the companies general and specific
Completeness and timing of recognition of loss events in
provisions;
accordance with criteria set out in BRPD circular no 14;
Assessed the methodologies on which the provision
For individually assessed provisions, the measurement of the
amounts based, recalculated the provisions and tested the
provision may be dependent on the valuation of collateral,
completeness and accuracy of the underlying information;
estimates of exit values and the timing of cash flows;
Finally assessed the appropriateness and presentation of
Provision measurement is primarily dependent upon key assumptions
disclosures against relevant accounting standards and Bangladesh
relating to probability of default, ability to repossess collateral and
Bank guidelines.
recovery rates;
See note no. 7 and 13.7 to the financial statements

228
HUSSAIN FARHAD & CO. K. M. HASAN & CO.
Chartered Accountants Chartered Accountants

INDEPENDENT AUDITORS’ REPORT

To the Shareholders of Rupali Bank Limited
Report on the Audit of the Consolidated and Separate Financial Statements

Valuation of treasury bill and treasury bond

The classification and measurement of T-Bill and T-Bond require We assessed the processes and controls put in place by the Group
judgment and complex estimates. to identify and confirm the existence of financial instruments.

In the absence of a quoted price in an active market, the fair value of
T-Bills and T-Bonds is determined using complex valuation techniques
which may take into consideration direct or indirect unobservable
market data and complex pricing models which require an elevated level
of judgment.
We obtained an understanding, evaluated the design and tested
the operating effectiveness of the key controls over the financial
instrument valuation processes, including controls over market
data inputs into valuation models, model governance, and
valuation adjustments.

We tested a sample of the valuation models and the inputs used in

those models, using a variety of techniques, including comparing
inputs to available market data.

Finally assessed the appropriateness and presentation of

See note no. 6 to the financial statements
Impairment assessment of unquoted investments
In the absence of a quoted price in an active market, the fair value of
unquoted shares and bonds, especially any impairment is calculated
using valuation techniques which may take into consideration direct or
indirect unobservable market data and hence requires an elevated level
of judgment.
disclosures against relevant accounting standards and Bangladesh
Bank guidelines.
We have assessed the process and controls put in place by the
Company to ensure all major investment decisions are taken
through a proper due diligence process.
We have tested a sample of investment valuation as at 31 December
2019 and compared our results to the recorded value.

Finally, we assessed the appropriateness and presentation of

disclosures against relevant accounting standards and Bangladesh
Bank guidelines.
See note no. 6 to the financial statements
Measurement of deferred tax assets
The Bank reports net deferred tax assets to totaling BDT 657 million as at We obtained an understanding, evaluated the design and tested
31 December 2019. the operational effectiveness of the Group’s key controls over
the recognition and measurement of DTAs and the assumptions
Significant judgment is required in relation to deferred tax assets as their used in estimating the Group’s future taxable income.
recoverability is dependent on forecasts of future profitability over a
number of years. We also assessed the completeness and accuracy of the data used
for the estimations of future taxable income.

We involved tax specialists to assess key assumptions, controls,

recognition and measurement of DTA’s.

Finally assessed the appropriateness and presentation of

See note no. 9. 08 .01 to the financial statements
Valuation of defined benefits and pension obligation
The Group operates a number of defined benefit schemes which in total
are significant in the context of the overall balance sheet. At year end the
Group reported a net pension liability of BDT 1,702 million (2018: BDT
1,908 million).
disclosures against IAS 12 Income Tax.
We tested the controls associated with the actuarial assumptions
setting process and the measurement of the fair value of the
schemes’ assets. We concluded that the key controls were
designed, implemented and operated efficiently.

The valuations of the retirement benefit liabilities are calculated with We tested the employee data used in calculating obligation.
reference to a number of actuarial assumptions and inputs including
discount rate, rate of inflation and mortality rates. The net pension We assessed the appropriateness and presentation of disclosure
liability is sensitive to changes in the assumptions. against IAS 19 Employee Benefits.
See note no. 13. 09.02 to the financial statements

Annual Report 2019 229

HUSSAIN FARHAD & CO. K. M. HASAN & CO.
Chartered Accountants Chartered Accountants

INDEPENDENT AUDITORS’ REPORT

To the Shareholders of Rupali Bank Limited
Report on the Audit of the Consolidated and Separate Financial Statements

Legal and regulatory matters

We focused on this area because the Bank and its subsidiaries (the We obtained an understanding, evaluated the design and tested
“Group”) operates in a legal and regulatory environment that is exposed the operational effectiveness of the Group’s key controls over the
to significant litigation and similar risks arising from disputes and legal provision and contingencies process.
regulatory proceedings. Such matters are subject to many uncertainties
and the outcome may be difficult to predict. We enquired to those charged with governance to obtain their view
on the status of all significant litigation and regulatory matters.
These uncertainties inherently affect the amount and timing of
potential outflows with respect to the provisions which have been We enquired of the Group’s internal legal counsel for all significant
established and other contingent liabilities. litigation and regulatory matters and inspected internal notes and
reports.
Overall, the legal provision represents the Group’s best estimate for
existing legal matters that have a probable and estimable impact on the We assessed the methodologies on which the provision amounts
Group’s financial position. are based, recalculated the provisions, and tested the completeness
and accuracy of the underlying information.

We also assessed the Group’s provisions and contingent liabilities

disclosure.
IT systems and controls
Our audit procedures have a focus on IT systems and controls due to the We tested the design and operating effectiveness of the
pervasive nature and complexity of the IT environment, the large volume Group’s IT access controls over the information systems that are
of transactions processed in numerous locations daily and the reliance critical to financial reporting. We tested IT general controls (logical
on automated and IT dependent manual controls. access, changes management and aspects of IT operational
controls). This included testing that requests for access to systems
Our areas of audit focus included user access management, developer were appropriately reviewed and authorized. We tested the
access to the production environment and changes to the IT environment. Group’s periodic review of access rights. We inspected requests of
These are key to ensuring IT dependent and application-based controls changes to systems for appropriate approval and authorization. We
are operating effectively. considered the control environment relating to various interfaces,
configuration and other application layer controls identified as key
to our audit.

Where deficiencies were identified, we tested compensating

controls or performed alternate procedures. In addition, we
understood where relevant, changes were made to the IT
landscape during the audit period and tested those changes that
had a significant impact on financial reporting.

CBS integrated reporting capacity enhancement needs under

constant cyber security threats are to be evaluated on a day to day
basis, and adequate budget allocations are to be ensured.
Carrying value of investments in subsidiary(s) by the Bank
The Bank has invested in equity shares of its two subsidiaries, namely We have reviewed Management’s analysis of impairment
Rupali Bank Securities Limited and Rupali Investment Limited. As at 31 assessment and recoverable value calculation of subsidiaries in
December 2019 the carrying value of this investment is BDT 1,000 million accordance with IAS 36.
and 1,000 million respectively.
In particular, our discussions with the Management were focused
At the time of conducting our audit of the separate financial statements on the continued appropriateness of the value in use model, the key
of the Bank, we have considered the recoverable value of the Bank’s assumptions used in the model, the reasonably possible alternative
investments in Rupali Bank Securities Limited and Rupali Investment assumptions, particularly where they had the most impact on the
Limited stated at cost. value in use calculation.

Management has conducted impairment assessment and calculated We also checked mathematical accuracy of the model, recalculated
recoverable value of its subsidiaries in accordance with IAS 36. discount rate used within the model, inputs used in the
determination of assumptions within the model were challenged
and corroborating information was obtained with reference to
external market information, third-party sources
See note no 9.01 to the financial statements

230
HUSSAIN FARHAD & CO. K. M. HASAN & CO.
Chartered Accountants Chartered Accountants

INDEPENDENT AUDITORS’ REPORT

To the Shareholders of Rupali Bank Limited
Report on the Audit of the Consolidated and Separate Financial Statements

COVID -19 impact on Financial Statements

COVID 19 is a force majeure event, unique in nature has devasted the Auditor’s and the firms under force majeure event applied
world and mankind. Efforts are underway to contain and recover. best judgements under the force majeure compulsion and the
circumstances in developing alternative audit procedures to
From early March 2020, there has been health related safety prioritized gather sufficient explanations as practicable. Bangladesh Banks
restrictions on auditor’s travel, meetings and access to Bank resources / involvements and contributions and initiations on relevant material
sites in some jurisdictions, limitation in providing supporting documents issues controls and remedies as appropriate and practicable were
and explanations by the concerned resources of the Bank. taken into cognizance as audit evidences.

The commercial banks in Bangladesh are in the process of (i) credit risk Regulatory initiatives (FRC) and stimulus packages are under
due to high level of default loan; mostly centering around the Limited constant evaluations of the Government to sustain banking
Companies ( both publicly traded and other limited companies not operations by enhancing the process of attention to loan covenants
operating diligently) (ii) market risk due to COVID-19 Pandemic that would and lender requirements. Clients that were financially healthy
lead to recession and the (iii) operational risk due to loss of business entering 2020 may have found themselves with cash shortfalls
opportunities and continuation with operational and maintenance by February onwards and would likely to continue until COVID is
overheads. Furthermore, to extend that there are Control deficiencies - A contained. Clients will be monitored on their financial information,
control deficiency exists when the design or operation of a control does particularly with outstanding loans and debt covenants from
not allow management to prevent or detect misstatements in a timely lenders and their obligatory diligent statutory reporting.
manner. Design deficiency occurs when: a requisite control is missing,
or an existing control is ineffective because it is not properly designed. On collective success assurance upon COVID, Bank is committed
to visualize that authority always flows from top to bottom,
Economy is the lifeline of the Country, institutions, community, responsibility flows from bottom to top and communicating across
environment and individuals. Providing finance is neither fruitful the bank that, accountability cannot be delegated and escaped.
nor rewarding, unless effective feedback provides transparency and
accountability and assists in educating the market. That, in turn would Auditor’s extended professional skepticism and judgement-based
assist improving the process itself; while also embedding the proper assurances under the circumstances, and relatively practicable
cause and effect mindset within involved people and processes that is support in the interest of Country’s banking business to a broader
critical to achieving better results and further to improve the standard of perspective.
submissions in the future. If these are not made sustainable; the money,
time and resources will not be appropriately applied to defend the total
investments. The Challenges ahead are huge, that would be addressed
both by invention and discoveries and also with cognizance to the nature
and nurture. Last but not the least, there is always light at the other end
of a tunnel.

Other Information

Management is responsible for the other information. The other information comprises all of the information in the Annual Report other than
the consolidated and separate financial statements and our auditors’ report thereon. The Annual Report is expected to be made available to us
after the date of this auditors’ report.

Our opinion on the consolidated and separate financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes
available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated.

When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to
those charged with governance.

Responsibilities of Management and Those Charged with Governance for the Consolidated and Separate Financial Statements
and Internal Controls

Management is responsible for the preparation of the consolidated financial statements of the Group and also separate financial statements of
the Bank that give a true and fair view in accordance with International Financial Reporting Standards (IFRSs) as explained in note 02, and for
such internal control as management determines is necessary to enable the preparation of consolidated and separate financial statements
that are free from material misstatement, whether due to fraud or error. The Bank Company Act, 1991 and the Bangladesh Bank Regulations
require the Management to ensure effective internal audit, internal control and risk management functions of the Bank. The Management is also
required to make a self-assessment on the effectiveness of anti-fraud internal controls and report to Bangladesh Bank on instances of fraud and
forgeries.

Annual Report 2019 231

HUSSAIN FARHAD & CO. K. M. HASAN & CO.
Chartered Accountants Chartered Accountants

INDEPENDENT AUDITORS’ REPORT

To the Shareholders of Rupali Bank Limited
Report on the Audit of the Consolidated and Separate Financial Statements

In preparing the consolidated and separate financial statements, management is responsible for assessing the Group’s and the Bank’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Group and the Bank or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s and the Bank’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated and Separate Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated and separate financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We
also:

Identify and assess the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the Bank’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to
the related disclosures in the consolidated and separate financial statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may
cause the Group and the Bank to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the disclosures,
and whether the consolidated and separate financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to
express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit
of the consolidated and separate financial statements of the current period and are therefore the key audit matters. We describe these matters
in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.

232
HUSSAIN FARHAD & CO. K. M. HASAN & CO.
Chartered Accountants Chartered Accountants

INDEPENDENT AUDITORS’ REPORT

To the Shareholders of Rupali Bank Limited
Report on the Audit of the Consolidated and Separate Financial Statements

Report on other Legal and Regulatory Requirements

In accordance with the Companies Act, 1994, the Securities and Exchange Rules 1987, the Bank Company Act, 1991 and the rules and regulations
issued by Bangladesh Bank, we also report that:

i. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our
audit;

ii. to the extent noted during the course of our audit work performed on the basis stated under the Auditors’ Responsibility section in forming
the above opinion on the consolidated financial statements of the Group and the separate financial statements of the Bank and considering
the reports of the Management to Bangladesh Bank on anti- fraud internal controls and instances of fraud and forgeries as stated under the
Management’s Responsibility for the financial statements and internal control:

a. internal audit, internal control and risk management arrangements of the Group as disclosed in the financial statements appeared to
be materially adequate;

b. nothing has come to our attention regarding material instances of forgery or irregularity or administrative error and exception or
anything detrimental committed by employees of the Group and its related entities;

iii. financial statements of Rupali Bank Limited subsidiaries namely, Rupali Investment Limited have been audited by M.J. Abedin & Co.,
Chartered Accountants and Rupali Bank Securities Limited have been audited by Mahfel Huq & Co., Chartered Accountants and have been
properly reflected in the consolidated financial statements;

iv. in our opinion, proper books of accounts as required by law have been kept by the Group and the Bank so far as it appeared from our
examination of those books;

v. the records and statements submitted by the branches have been properly maintained and consolidated in the financial statements;

vi. the consolidated balance sheet and consolidated profit and loss account together with the annexed notes dealt with by the report are in
agreement with the books of account and returns;

vii. the expenditures incurred were for the purpose of the Bank’s business for the year;

viii. the consolidated financial statements of the Group and the separate financial statements of the Bank have been drawn up in conformity
with prevailing rules, regulations and accounting standards as well as related guidance issued by Bangladesh Bank;

ix. adequate provisions have been made for advance and other assets which are in our opinion, doubtful of recovery;

x. the information and explanations required by us have been received and found satisfactory;

xi. we have reviewed over 80% of the risk weighted assets of the Bank and spent over 8,200 person hours; and

xii. Capital to Risk-weighted Asset Ratio (CRAR) as required by Bangladesh Bank has been maintained adequately at balance sheet date.

M Farhad Hussain FCA Md. Aminur Rahman Chowdhury FCA

Engagement Partner Engagement Partner
Hussain Farhad & Co. K. M. Hasan & Co.
Chartered Accountants Chartered Accountants

Dated, Dhaka
Sunday, June 28, 2020

Annual Report 2019 233

RUPALI BANK LIMITED
CONSOLIDATED BALANCE SHEET
As at 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
PROPERTY AND ASSETS
Cash 3(a)
Cash In Hand (Including Foreign Currencies) 3,171,685,375 2,327,632,394
Balance with Bangladesh Bank & Sonali Bank (Including Foreign Currencies) 21,367,681,249 21,495,612,636
24,539,366,624 23,823,245,030
Balance with Other Banks and Financial Institutions 4(a)
In Bangladesh 20,860,500,000 64,000,012,500
Outside Bangladesh 2,636,913,944 1,331,282,042
23,497,413,944 65,331,294,542
Money at Call and Short Notice 5(a) - 5,240,000,000
Investments 6(a)
Government 63,352,839,496 45,277,669,300
Others 41,912,013,608 38,469,840,700
105,264,853,104 83,747,510,000
Loans and Advances 7(a)
Loans, Cash Credit, Overdrafts etc. 305,732,273,604 247,114,202,842
Bills Purchased and Discounted 1,468,980,439 881,548,981
307,201,254,043 247,995,751,823
Fixed Assets including Land, Building, Furniture and Fixtures 8(a) 14,341,856,609 14,243,601,900
Other Assets 9(a) 23,049,716,142 23,595,447,819
Non-Banking Assets 10(a) - -
TOTAL PROPERTY AND ASSETS 497,894,460,466 463,976,851,114

LIABILITIES AND CAPITAL

Liabilities
Borrowing from Other Banks, Financial Institutions & Agents 11(a) 12,065,813,268 7,007,703,423
Deposits and Other Accounts 12(a)
Current and Other Accounts, etc. 29,091,344,645 43,868,759,290
Bills Payable 6,382,692,663 4,339,273,881
Savings Deposits 87,112,204,653 79,165,480,222
Fixed Deposits 292,038,008,209 262,175,966,008
Other Deposits - -
414,624,250,170 389,549,479,401
Other Liabilities 13(a) 54,164,918,137 50,203,269,438
Total Liabilities 480,854,981,575 446,760,452,262
Capital and Shareholders' Equity
Paid-up Capital 14 4,141,686,320 3,765,169,390
Share Money Deposit 15 6,799,953,800 6,799,953,800
Statutory Reserve 16 3,443,026,585 3,251,663,997
General Reserve 17 - -
Assets Revaluation Reserve 18 631,858,882 631,858,882
Revaluation Reserve for Securities 19 1,462,948,609 2,218,057,944
Retained Earnings 20(a) 560,004,695 549,694,839
Total Shareholders' Equity 17,039,478,891 17,216,398,852
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 497,894,460,466 463,976,851,114

234
 Rupali Bank Limited

RUPALI BANK LIMITED

CONSOLIDATED BALANCE SHEET
As at 31 December 2019

Amount in Taka
Particulars Notes
2019 2018

OFF - BALANCE SHEET EXPOSURE 21(a)

Contingent Liabilities
Acceptance and Endorsements 4,172,947,036 2,092,015,464
Letter of Guarantee 4,680,448,348 3,402,042,481
Irrevocable Letters of Credit 138,650,313,283 97,909,646,739
Bills For Collection 2,784,328,736 1,112,011,993
Other Contingent Liability (DC Notes) 9,707,250 10,007,251
Total Contingent Liabilities 150,297,744,653 104,525,723,928

Other Commitments

Documentary Credits and Short Term Trade-Related Transaction - -

Forward Assets Purchased and Forward Deposit Placed - -
Undrawn Note Issuance and Revolving Underwriting Facilities - -
Undrawn Formal Standby Facilities, Credit Lines and Other Commitments - -
Liabilities Against Forward Purchase and Sale - -

Total Off Balance Sheet Exposure Including Contingent Liabilities 150,297,744,653 104,525,723,928

Net Asset Value Per Share (NAVPS) (Restated) 41.14 41.57

The annexed accounting policies and other notes form an integral part of these financial statements.

Monzur hosain

Md. Shawkat Jahan Khan, FCMA Md. Obayed Ullah Al Masud

Chief Financial Officer Managing Director & CEO

Mohammad Delwar Hossain Mohammad Abdul Baset Khan Monzur Hossain

Director Director Monzur hosain
Chairman

As per our separate report of even date annexed.

HUSSAIN FARHAD & CO. K M HASAN & CO.

Chartered Accountants Chartered Accountants

Dated, Dhaka
Sunday, June 28, 2020

Annual Report 2019 235

RUPALI BANK LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNTS
for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
Interest Income 23(a) 18,776,330,423 17,873,229,530
Less: Interest Paid on Deposits, Borrowings etc. 24(a) 18,704,562,076 15,300,572,191
Net Interest Income 71,768,347 2,572,657,339
Investment Income 25(a) 8,775,083,090 6,480,188,955
Commission, Exchange, Brokerage etc. 26(a) 1,573,863,390 1,163,941,966
Other Operating Income 27(a) 1,006,224,636 1,160,056,036
Total Operating Income 11,426,939,463 11,376,844,296
Salary and Allowances 28(a) 4,817,508,765 4,690,374,020
Rent, Taxes, Insurance, Electricity etc. 29(a) 591,357,654 537,368,120
Legal and Professional Expenses 22,472,460 24,421,502
Postage, Stamp, Telecommunication etc. 30(a) 33,395,135 27,578,356
Stationery, Printing, Advertisement etc. 31(a) 131,770,913 137,223,574
Managing Director's Salary and Fees 28.01(a) 4,800,000 4,800,000
Directors' Fees and Expenses 28.02(a) 3,898,200 3,705,189
Audit Fees 32(a) 4,364,750 3,132,500
Depreciation and Repairs of Bank's Assets 33(a) 661,354,414 600,026,107
Other Expenses 34(a) 3,151,784,053 2,184,681,349
Total Operating Expenses 9,422,706,344 8,213,310,717
Profit/(Loss) before Provision 2,004,233,119 3,163,533,580
Provision for Loans and Advances 35(a) 838,780,939 1,584,750,467
Provision for Off-balance Sheet Exposures 36(a) 105,000,000 -
Provision for Diminution in Value of Investments 37(a) 21,200,000 623,400,000
Other Provisions 38(a) 39,732,687 191,000,000
Total Provisions 1,004,713,626 2,399,150,467
Total Profit / (Loss) before Tax 999,519,493 764,383,113
Provision for Taxation 39(a) 429,938,124 355,038,482
Current tax 39.01(a) 349,337,142 175,593,162
Deferred tax 39.02(a) 80,600,981 179,445,320
Net Profit / (Loss) after Tax for the year 569,581,369 409,344,631
Other comprehensive income - -
Total comprehensive Income 569,581,369 409,344,631
Retained Earnings brought forward from previous year (restated) 20(a) 180,978,594 284,192,793
750,559,963 693,537,424
Appropriations
Statutory Reserve 16 191,362,588 143,842,585
191,362,588 143,842,585
Retained Earnings Surplus/ Deficit 559,197,375 549,694,839
Basic Earning per Share (EPS) (restated) 40(a) 1.38 0.99
The annexed accounting policies and other notes form an integral part of these financial statements.

Monzur hosain
Md. Shawkat Jahan Khan, FCMA Md. Obayed Ullah Al Masud
Chief Financial Officer Managing Director & CEO

Mohammad Delwar Hossain Mohammad Abdul Baset Khan Monzur Hossain

Director Director Monzur hosain
Chairman

As per our separate report of even date annexed.

HUSSAIN FARHAD & CO. K M HASAN & CO.

Chartered Accountants Chartered Accountants
Dated, Dhaka
Sunday, June 28, 2020
236
 Rupali Bank Limited

RUPALI BANK LIMITED

CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
Cash Flows from Operating Activities

Interest Receipts in Cash 41(a) 26,720,195,778 24,339,607,376

Interest Payments 42(a) (17,657,482,035) (16,982,393,111)
Dividend Receipts 188,788,404 356,457,213
Fees, Commissions, Brokerage etc. 1,010,440,163 778,289,897
Recoveries of Loans Previously Written off 55,100,000 281,400,000
Cash Payments to Employees (4,829,141,844) (4,706,583,274)
Cash Payments to Suppliers (740,057,878) (676,487,696)
Income Taxes Paid (113,123,697) (205,837,561)
Receipts from Other Operating Activities 1,419,289,001 1,691,516,073
Payments for Other Operating Activities (3,686,330,250) (3,040,839,705)
Cash Generated from Operating Activities before changes in Operating Assets and Liabilities 2,367,677,643 1,835,129,213

Increase / (Decrease) in Operating Assets and Liabilities

Loans and Advances to Customers (59,262,332,789) (40,817,937,599)
Other Assets 43(a) 316,519,496 (4,044,803,788)
Deposits from Customers 25,074,770,769 69,830,689,701
Other Liabilities 44(a) 314,744,695 4,621,687,529
(33,556,297,830) 29,589,635,842
Net Cash Flows from Operating Activities (31,188,620,187) 31,424,765,055

Cash Flows from Investing Activities

Proceeds from Sale of Securities 794,189,174,674 188,245,720,477
Payments for Purchases of Securities (814,376,097,956) (204,061,230,566)
Purchase of Property, Plant and Equipment (592,815,429) (302,546,230)
Proceeds from Sale of Property, Plant and Equipment 3,244 3,018,812
Net Cash used in Investing Activities (20,779,735,467) (16,115,037,507)

Annual Report 2019 237

RUPALI BANK LIMITED
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
Cash Flows from Financing Activities
Borrowing from Other Banks and Financial Institutions and Agents 5,058,109,845 3,470,234,849
Capital Injection - 3,000,000,000
Cash Flows from Financing Activities 5,058,109,845 6,470,234,849
Net Increase / (Decrease) in Cash (46,910,245,809) 21,779,962,397
Effect on Cash & Cash Equivalent Due to Changes in exch. Rate * 552,486,805 372,228,946
Cash and Cash Equivalent at the Beginning of the Year 45(a) 94,394,539,572 72,242,348,229
Cash and Cash Equivalent at the End of the Year 45(a) 48,036,780,569 94,394,539,572

Net Cash Operating Inflow Per Share (Restated) (75.30) 75.87

The annexed accounting policies and other notes form an integral part of these financial statements.

Monzur hosain

Md. Shawkat Jahan Khan, FCMA Md. Obayed Ullah Al Masud

Chief Financial Officer Managing Director & CEO

Mohammad Delwar Hossain Mohammad Abdul Baset Khan Monzur Hossain

Director Director Monzur hosain
Chairman

As per our separate report of even date annexed.

HUSSAIN FARHAD & CO. K M HASAN & CO.

Chartered Accountants Chartered Accountants

Dated, Dhaka
Sunday, June 28, 2020

238
 RUPALI BANK LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2019

Share Money Statutory General Revaluation Reserve/gain/loss Retained

Particulars Paid Up Capital Total
Deposit Reserve Reserves Properties Investments Earnings

Balance as at 01 January 2019 3,765,169,390 6,799,953,800 3,251,663,997 - 631,858,882 2,218,057,944 549,694,839 17,216,398,852
Dividends (Bonus share) 376,516,930 - - - - - (376,516,930) -
Restated Balance as at 01 January 2019 4,141,686,320 6,799,953,800 3,251,663,997 - 631,858,882 2,218,057,944 173,177,909 17,216,398,852
Excess provision of DDP transfer to retained earnings - - - - - - 5,000,000 5,000,000
Surplus / (deficit) on revaluation of investments (755,109,335) - (755,109,335)
- - - -
(HTM&HFT)
Net profit during the year - - - - - - 569,581,369 569,581,369
Wrongly posted now rectified - - - - - - 8,095,141 8,095,141
Excess provision transfer to retained earnings - - - - - - 807,320 807,320
Excess Profit charged by now rectified - (5,294,456) (5,294,456)
Transferred to statutory reserve - - 191,362,588 - - - (191,362,588) -
Balance as at 31 December 2019 4,141,686,320 6,799,953,800 3,443,026,585 - 631,858,882 1,462,948,609 560,004,695 17,039,478,891
Balance as at 31 December 2018 3,765,169,390 6,799,953,800 3,251,663,997 - 631,858,882 2,218,057,944 549,694,839 17,216,398,852
The annexed accounting policies and other notes form an integral part of these financial statements.

Monzur hosain

Md. Shawkat Jahan Khan, FCMA Md. Obayed Ullah Al Masud Mohammad Delwar Hossain Mohammad Abdul Baset Khan Monzur Hossain
Chief Financial Officer Managing Director & CEO Director Director Monzur hosain
Chairman

HUSSAIN FARHAD & CO. As per our separate report of even date annexed. K M HASAN & CO.
Chartered Accountants Chartered Accountants

Annual Report 2019

Rupali Bank Limited

Dated, Dhaka
Sunday, June 28, 2020

239
RUPALI BANK LIMITED
BALANCE SHEET
as at 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
PROPERTY AND ASSETS
Cash 3
Cash In Hand (Including Foreign Currencies) 3,171,643,770 2,327,606,688
Balance with Bangladesh Bank & Sonali Bank (Including Foreign Currencies) 21,225,848,836 21,218,964,074
24,397,492,606 23,546,570,762
Balance with Other Banks and Financial Institutions 4
In Bangladesh 20,860,500,000 64,000,012,500
Outside Bangladesh 2,636,913,944 1,331,282,042
23,497,413,944 65,331,294,542
Money at Call and Short Notice 5 - 5,240,000,000
Investments 6
Government 63,352,839,496 45,277,669,300
Others 40,293,327,544 37,058,785,984
103,646,167,040 82,336,455,284
Loans and Advances 7
Loans, Cash Credit, Overdrafts etc. 305,255,059,510 246,609,058,179
Bills Purchased and Discounted 1,468,980,439 881,548,981
306,724,039,949 247,490,607,160
Fixed Assets including Land, Building, Furniture and Fixtures 8 14,327,442,295 14,231,035,297
Other Assets 9 24,656,764,342 25,113,883,075
Non-Banking Assets 10 - -
TOTAL PROPERTY AND ASSETS 497,249,320,176 463,289,846,120

LIABILITIES AND CAPITAL

Liabilities
Borrowing from Other Banks, Financial Institutions & Agents 11 12,065,813,268 7,007,703,423
Deposits and Other Accounts 12
Current and Other Accounts, etc. 29,091,344,645 43,868,759,290
Bills Payable 6,382,692,663 4,339,273,881
Savings Deposits 87,112,204,653 79,165,480,222
Fixed Deposits 292,038,008,209 262,175,966,008
Other Deposits - -
414,624,250,170 389,549,479,401
Other Liabilities 13 53,683,244,953 49,655,720,394
Total Liabilities 480,373,308,391 446,212,903,218
Capital and Shareholders' Equity
Paid-up Capital 14 4,141,686,320 3,765,169,390
Share Money Deposit 15 6,799,953,800 6,799,953,800
Statutory Reserve 16 3,443,026,585 3,251,663,997
General Reserve 17 - -
Assets Revaluation Reserve 18 631,858,882 631,858,882
Revaluation Reserve for Securities 19 1,462,948,609 2,218,057,944
Retained Earnings 20 396,537,589 410,238,889
Total Shareholders' Equity 16,876,011,785 17,076,942,902
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 497,249,320,176 463,289,846,120

240
 Rupali Bank Limited

RUPALI BANK LIMITED

BALANCE SHEET
as at 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
OFF - BALANCE SHEET EXPOSURE 21

Contingent Liabilities

Acceptance and Endorsements 4,172,947,036.16 2,092,015,464.03

Letter of Guarantee 4,680,448,348 3,402,042,481
Irrevocable Letters of Credit 138,650,313,283 97,909,646,739
Bills For Collection 2,784,328,736 1,112,011,993
Other Contingent Liability (DC Notes) 9,707,250 10,007,251
Total Contingent Liabilities 150,297,744,653 104,525,723,928

Other commitments

Documentary credits and short term trade-related transaction - -

Forward assets purchased and forward deposit placed - -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -
Liabilities against forward purchase and sale - -

Total off balance sheet exposure including contingent liabilities 150,297,744,653 104,525,723,928

Net Asset Value Per Share (NAVPS) (restated) 40.75 41.23

The annexed accounting policies and other notes form an integral part of these financial statements.

Monzur hosain

Md. Shawkat Jahan Khan, FCMA Md. Obayed Ullah Al Masud

Chief Financial Officer Managing Director & CEO

Mohammad Delwar Hossain Mohammad Abdul Baset Khan Monzur Hossain

Director Director Monzur hosain
Chairman

As per our separate report of even date annexed.

HUSSAIN FARHAD & CO. K M HASAN & CO.

Chartered Accountants Chartered Accountants

Dated, Dhaka
Sunday, June 28, 2020

Annual Report 2019 241

RUPALI BANK LIMITED
PROFIT AND LOSS ACCOUNTS
for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
Interest Income 23 18,723,411,116 17,827,993,144
Less: Interest Paid on Deposits, Borrowings etc. 24 18,704,562,076 15,300,572,191
Net Interest Income 18,849,040 2,527,420,953
Investment Income 25 8,723,510,304 6,427,399,745
Commission, Exchange, Brokerage etc. 26 1,562,926,968 1,150,518,843
Other Operating Income 27 1,001,166,193 1,151,676,036
Total Operating Income 11,306,452,505 11,257,015,577
Salary and Allowances 28 4,792,976,683 4,663,846,634
Rent, Taxes, Insurance, Electricity etc. 29 581,871,586 525,596,410
Legal and Professional Expenses 22,435,796 24,384,977
Postage, Stamp, Telecommunication etc. 30 32,516,546 26,837,152
Stationery, Printing, Advertisement etc. 31 131,596,945 137,003,291
Managing Director's Salary and Fees 28.01 4,800,000 4,800,000
Directors' Fees and Expenses 28.02 2,576,000 2,472,389
Audit Fees 32 4,226,750 2,994,500
Depreciation and Repairs of Bank's Assets 33 658,182,776 597,197,650
Other Expenses 34 3,142,994,292 2,176,869,652
Total Operating Expenses 9,374,177,374 8,162,002,655
Profit/(Loss) before Provision 1,932,275,131 3,095,012,923
Provision for Loans and Advances 35 830,729,505 1,581,300,000
Provision for Off-balance Sheet Exposures 36 105,000,000 -
Provision for Diminution in Value of Investments 37 - 603,500,000
Other Provisions 38 39,732,687 191,000,000
Total Provisions 975,462,192 2,375,800,000
Total Profit / (Loss) before Tax 956,812,939 719,212,923
Provision for Taxation 39 410,435,406 340,002,178
Current tax 329,705,076 160,349,134
Deferred tax 80,730,329 179,653,044
Net Profit / (Loss) after Tax for the year 546,377,533 379,210,745
Other comprehensive income - -
Total comprehensive Income 546,377,533 379,210,745
Retained Earnings brought forward from previous year (restated) 20 41,522,644 174,870,729
587,900,177 554,081,474
Appropriations
Statutory Reserve 16 191,362,588 143,842,585
191,362,588 143,842,585
Retained Earnings Surplus/ Deficit 396,537,589 410,238,889
Basic Earning per Share (EPS) (restated) 40 1.32 0.92
The annexed accounting policies and other notes form an integral part of these financial statements.

Monzur hosain
Md. Shawkat Jahan Khan, FCMA Md. Obayed Ullah Al Masud
Chief Financial Officer Managing Director & CEO

Mohammad Delwar Hossain Mohammad Abdul Baset Khan Monzur Hossain

Director Director Monzur hosain
Chairman
As per our separate report of even date annexed.

HUSSAIN FARHAD & CO. K M HASAN & CO.

Chartered Accountants Chartered Accountants
Dated, Dhaka
Sunday, June 28, 2020

242
 Rupali Bank Limited

RUPALI BANK LIMITED

CASH FLOW STATEMENT
for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018

Cash flows from operating activities

Interest receipts in cash 41 26,707,898,973 24,329,948,058

Interest payments 42 (17,657,482,035) (16,982,393,111)

Dividend receipts 158,981,654 324,546,140

Fees, commissions, brokerage etc. 26 1,010,440,163 778,289,897

Recoveries of loans previously written off 55,100,000 281,400,000

Cash payments to employees 28 (4,797,776,683) (4,668,646,634)

Cash payments to suppliers (745,985,077) (689,436,853)

Income taxes paid (100,000,000) (200,000,000)

Receipts from other operating activities 27 1,001,166,193 1,151,676,036

Payments for other operating activities (3,385,544,708) (2,462,686,176)

Cash generated from operating activities before changes in operating assets and liabilities 2,246,798,481 1,862,697,358

Increase / (decrease) in operating assets and liabilities

Loans and advances to customers (59,233,432,789) (40,817,937,599)

Other assets 43 340,407,962 (3,994,803,788)

Deposits from customers 25,074,770,769 69,830,689,701

Other liabilities 44 316,367,468 4,623,343,137

(33,501,886,591) 29,641,291,450

Net Cash flows from operating activities (31,255,088,110) 31,503,988,808

Cash flows from investing activities

Proceeds from sale of securities 794,090,045,911 188,106,433,327

Payments for purchases of securities (814,080,357,667) (203,946,957,781)

Purchase of property, plant and equipment (588,158,782) (302,363,839)

Proceeds from sale of property, plant and equipment 3,244 3,018,812

Net cash used in investing activities (20,578,467,294) (16,139,869,481)

Annual Report 2019 243

RUPALI BANK LIMITED
CASH FLOW STATEMENT
for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
Cash flows from financing activities

Borrowing from other banks and financial institutions and agents 5,058,109,845 3,470,234,849

Capital Injection - 3,000,000,000

Cash flows from financing activities 5,058,109,845 6,470,234,849

Net increase / (decrease) in cash (46,775,445,559) 21,834,354,176

Effect on cash & cash equivalent due to changes in exch. rate 26 552,486,805 372,228,946

Cash and cash equivalent at the beginning of the year 45 94,117,865,304 71,911,282,182

Cash and Cash Equivalent at the End of the Year 45 47,894,906,551 94,117,865,304

Net cash operating inflow per share (restated) (75.46) 76.07

The annexed accounting policies and other notes form an integral part of these financial statements.

Monzur hosain

Md. Shawkat Jahan Khan, FCMA Md. Obayed Ullah Al Masud

Chief Financial Officer Managing Director & CEO

Mohammad Delwar Hossain Mohammad Abdul Baset Khan Monzur Hossain

Director Director Monzur hosain
Chairman

As per our separate report of even date annexed.

HUSSAIN FARHAD & CO. K M HASAN & CO.

Chartered Accountants Chartered Accountants

Dated, Dhaka
Sunday, June 28, 2020

244
 RUPALI BANK LIMITED
STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2019

Share Money Statutory General Revaluation Reserve/gain/loss Retained

Particulars Paid Up Capital Total
Deposit Reserve Reserves Properties Investments Earnings

Balance as at 1st January-19 3,765,169,390 6,799,953,800 3,251,663,997 - 631,858,882 2,218,057,944 410,238,889 17,076,942,902
Dividends (Bonus share) 376,516,930 - - - - (376,516,930) -
Restated Balance as at 1st January-19 4,141,686,320 6,799,953,800 3,251,663,997 - 631,858,882 2,218,057,944 33,721,959 17,076,942,902
Excess provision of DDP transfer to retained earnings - - - - - - 5,000,000 5,000,000
Surplus / (deficit) on revaluation of investments - - - - (755,109,335) - (755,109,335)
(HTM&HFT)
Net profit during the year - - - - - - 546,377,533 546,377,533
Wrongly posted now rectified 8,095,141 8,095,141
Excess Profit charged by now rectified - (5,294,456) (5,294,456)
Transferred to statutory reserve - - 191,362,588 - - - (191,362,588) -
Capital Injection - - - - - - - -
Balance as at 31 December - 2019 4,141,686,320 6,799,953,800 3,443,026,585 - 631,858,882 1,462,948,609 396,537,589 16,876,011,785

Balance as at 31 December -2018 3,765,169,390 6,799,953,800 3,251,663,997 - 631,858,882 2,218,057,944 410,238,889 17,076,942,902
The annexed accounting policies and other notes form an integral part of these financial statements.

Monzur hosain

Md. Shawkat Jahan Khan, FCMA Md. Obayed Ullah Al Masud Mohammad Delwar Hossain Mohammad Abdul Baset Khan Monzur Hossain
Chief Financial Officer Managing Director & CEO Director Director Monzur hosain
Chairman

HUSSAIN FARHAD & CO. As per our separate report of even date annexed. K M HASAN & CO.
Chartered Accountants Chartered Accountants

Annual Report 2019

Rupali Bank Limited

Dated, Dhaka
Sunday, June 28, 2020

245
 RUPALI BANK LIMITED

246
LIQUIDITY STATEMENT ( MATURITY ANALYSIS OF ASSETS & LIBILITIES )
for the year ended 31 December 2019

Particulars Upto 01 Month 01 to 03 Months 03 to12 Months 01 to 05 Years More than 05 years Total
Assets
Cash in hand 3,794,614,403 - - - 20,602,878,203 24,397,492,606
Balance with other banks and financial institutions 20,847,412,371 2,100,001,246 550,000,327 - - 23,497,413,944
Money at call and short notice - - - - - -
Investments 1,085,300,702 1,476,300,955 13,364,108,644 50,588,432,721 37,132,024,018 103,646,167,040
Loans and advances 51,739,050,420 62,685,067,277 91,635,499,956 53,696,943,433 46,967,478,863 306,724,039,949
Fixed assets (including premises, furniture and fixture) - - - 394,417,488 13,933,024,807 14,327,442,295
Other assets - 5,536,274,391 7,570,856,299 9,627,162,090 1,922,471,562 24,656,764,342
Non banking assets - - - - - -
Total assets 77,466,377,896 71,797,643,869 113,120,465,226 114,306,955,732 120,557,877,453 497,249,320,176
Liabilities
Borrowing from Bangladesh bank, other banks, Financial
4,883,105,370 499,100,549 683,600,752 3,600,003,958 2,400,002,639 12,065,813,268
institutions and agents
Deposit accounts 57,002,592,714 85,435,750,741 158,551,314,150 87,971,726,183 25,662,866,382 414,624,250,170
Other accounts - - - - -
Other Liabilities 5,072,572,765 11,586,511,567 26,103,342,951 10,920,817,670 - 53,683,244,953
Total Liablities 66,958,270,849 97,521,362,857 185,338,257,853 102,492,547,811 28,062,869,021 480,373,308,391
Net Liquidity difference 10,508,107,047 (25,723,718,988) (72,217,792,627) 11,814,407,921 92,495,008,432 16,876,011,785

The annexed accounting policies and other notes form an integral part of these financial statements.

Monzur hosain

Md. Shawkat Jahan Khan, FCMA

Chief Financial Officer Md. Obayed Ullah Al Masud Mohammad Delwar Hossain Mohammad Abdul Baset Khan Monzur Hossain
Managing Director & CEO Director Director Monzur hosain
Chairman

HUSSAIN FARHAD & CO. As per our separate report of even date annexed. K M HASAN & CO.
Chartered Accountants Chartered Accountants

Dated, Dhaka
Sunday, June 28, 2020
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

1.00 The Bank and its activities

1.1 Rupali Bank Limited

Rupali Bank Limited was incorporated as Public Limited Company on the 14th day of December, 1986, vides Certificate of Incorporation
No.C-17063, 467 of 1986-1987 under the Companies Act, 1913 (as amended in Companies Act, 1994). The bank has taken over the
business of Rupali Bank (emerged as a nationalized commercial bank in 1972), pursuant to Bangladesh Bank Nationalization Order No.
1972 (P. O. No. 26 of 1972) on a going concern basis through a vendor agreement signed between the Ministry of Finance, of the People’s
Republic of Bangladesh on behalf of Rupali Bank and board of directors on 14 December 1986 with a retrospective effect from 14
December 1986. Shares of the bank are listed in the Dhaka Stock Exchange and Chittagong Stock Exchange. The bank has 572 branches
as on 31 December, 2019 the registered office of the company is located at 34 Dilkusha C/A, Dhaka-1000.

1.2 Principal activities

The principal activities of the Bank are to provide all kinds of commercial banking and related services such as accepting deposits,
lending loans to customers, Local and international trade and services, treasury functions & investment including capital market, cash
management, securities and custody services, remittance services, Mobile Banking Services etc.

1.3 The Bank has 2 (Two) Subsidiaries with following detail as presented in the financial Statement in 31 December 2019.

1.3.1 Rupali Investment Limited

Rupali Investment Limited, a 100% owned subsidiary company of Rupali Bank Limited, was incorporated on 31 March 2011 as a public
limited company bearing registration No-27899 under the Companies Act 1994 with an authorized share capital of Tk. 500.00 (five
hundred) crore. The company is formed to carry out the business of full-fledged merchant banking activities like issue management,
portfolio management, underwriting, corporate advisory services, etc. Rupali Investment Limited has started its commercial operation
from February 2012. Financial statements of the company are shown in annexure “G”

1.3.2 Rupali Bank Securities Limited

Rupali Bank Securities Limited a 100% owned subsidiary company of Rupali Bank Limited, was incorporated as a private limited company
on 29th August, 2013 vide Registrar of Joint Stock Companies and Firms, Dhaka and certificate of incorporation No: C-110969/13 under
the Companies Act 1994. The main objective of the Company is to act as, and carry on the business of a stock broker & stock dealer and
to engage in all types of stock broking business. Financial statements of the company are shown in annexure “H”

2.00 Significant accounting policies and basis of preparation of financial statements

2.1 Basis of accounting

2.1.1 Statement of compliance

The financial statements of the Bank and its subsidiaries (the “Group”) have been made for the year ended on December 31, 2019
and are prepared under the historical cost Basis, except for certain investments which are stated at fair/market value and freehold
land which are measured at revalued amount, in accordance with the First Schedule (Sec-38) of the Bank Companies Act 1991 (as
Amended up to 2013), BRPD Circular # 14 dated June 25, 2003 and DFIM Circular # 11, dated December 23, 2009, other Bangladesh Bank
Circulars, International Accounting Standards (“IAS”) and International Financial Reporting Standards (“IFRS”) adopted by the Institute
of Chartered Accountants of Bangladesh (“ICAB”), the Companies Act 1994, the Securities and Exchange Rules 1987, Dhaka & Chittagong
Stock Exchanges’ listing regulations and other laws rules applicable in Bangladesh. In cases where the requirements of Bangladesh
Bank differ with those of IAS/IFRS, the requirements of Bangladesh Bank have been applied.

The Financial Reporting Act 2015 (FRA) was enacted in 2015. Under the FRA, the Financial Reporting Council (FRC) is to be formed and
it is to issue financial reporting standards for public interest entities such as banks. The Bank Companies Act 1991 has been amended
to require banks to prepare their financial statements under such financial reporting standards. The FRC has been formed but yet to
issue any financial reporting standards as per the provisions of the FRA and hence International Financial Reporting Standards (IFRS) as
issued by the Institute of Chartered Accountants of Bangladesh (ICAB) are still applicable.

Accordingly, the financial statements of the Bank continue to be prepared in accordance with International Financial Reporting
Standards (IFRS) and the requirements of the Bank Company Act 1991, the rules and regulations issued by Bangladesh Bank (BB),
the Companies Act 1994. In case any requirement of the Bank Company Act 1991, and provisions and circulars issued by Bangladesh
Bank differ with those of IFRS, the requirements of the Bank Company Act 1991, and provisions and circulars issued by Bangladesh
Bank shall prevail.

2.1.2 Basis of consolidation

The consolidated financial statements include the financial statements of Rupali Bank Limited and its subsidiaries, i.e. Rupali Investment
Limited and Rupali Bank Securities Limited,

Annual Report 2019 247

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

The consolidated financial statements have been prepared in accordance with International Accounting Standard (IAS)-27 “Separate
Financial Statements” and International Financial Reporting Standard (IFRS)- 10: “Consolidated Financial Statements”. The consolidated
financial statements are prepared to a common financial year ended on December 31, 2019.

Subsidiary is that enterprise which is controlled by the Bank. Control exists when the Bank has the power, directly or indirectly, to
govern the financial and operating policies of an enterprise from the date that control commences until the date that control ceases.
The financial statements of subsidiary are included in the consolidated financial statements from the date that control effectively
commences until the date that the control effectively ceases.

2.1.3 Use of estimates and judgments

In preparation of the financial statements management is required to make judgments, estimates and assumptions that affect the
application of accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from
these estimates.

Estimates and underlying assumptions are reviewed on a going concern basis. Revisions to accounting estimates are recognized in the
period in which the estimate is revised and in any future periods affected.

The most significant areas where estimates and judgments have been applied are to calculate provision for loans and advances and
investments as per Bangladesh Bank guidelines.

2.1.4 Foreign currency transaction and Commitments

a) Foreign currency

Items included in the financial statements of each entity in the group are measured using the currency of the primary economic
environment in which the entity operates, i e. the functional currency. The financial statements of the group and the Bank are
presented in BDT which is the Bank’s functional and presentation currency.

b) Foreign currencies translation

Foreign currency transactions are converted into equivalent BDT using the prevailing exchange rates on the dates of respective
transactions as per IAS-21, “The Effects of Changes in Foreign Exchange Rates”. Foreign currency balances held in US Dollar are
converted into BDT at weighted average rate of inter-bank market as determined by Bangladesh Bank on the closing date of
every month. Balances held in foreign currencies other than US Dollar are converted into equivalent US Dollar at buying rates
of New York closing of the previous day and converted into equivalent BDT.

c) Commitments

Commitments for outstanding forward foreign exchange contracts disclosed in these financial statements are translated at
rates mentioned in contracts. Contingent liabilities / commitments for letters of credit and letters of guarantee denominated in
foreign currencies are expressed in BDT terms at the rates of exchange prevailing on the balance sheet date.

2.1.5 Statement of cash flows

Statement of cash flows has been prepared in accordance with International Accounting Standard-7: Statement of Cash Flows and
under the guideline of Bangladesh Bank BRPD Circular No. 14 dated 25 June 2003. The Statement shows the structure of changes in
cash and cash equivalents during the financial year.

* Transfer from “Fees, commissions, brokerage etc.” amounting BDT 372,228,946.00 to “Effect on Cash & Cash Equivalent Due to Changes
in exchange Rate” as per IAS-7 for the year-2018.

2.1.6 Liquidity statement

The liquidity statement has been prepared in accordance with remaining maturity grouping of assets and liabilities as of the close of the
year as per following basis.

a) Balance with other banks and financial institutions, money at call and short notice, etc. are on the basis of their maturity term;
b) Investments are on the basis of their residual maturity term;
c) Loans and advances are on the basis of their repayment/maturity schedule;
d) Fixed assets are on the basis of their useful lives;
e) Other assets are on the basis of their adjustment;
f) Borrowing from other banks & financial institutions is as per their maturity/repayment term;
g) Deposits & other accounts are on the basis of their maturity term and behavioral past trend;

248
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

h) Other long term liabilities are on the basis of their maturity term;
i) Provisions and other liabilities are on the basis of their settlement.
2.1.7 Reporting period

These financial statements cover one calendar year from 1st January to 31st December 2019.

2.1.8 Offsetting

Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable
right to offset the recognised amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability
simultaneously

2.2 Assets and Basis of their valuation

2.2.1 Cash and cash equivalents

Cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh Bank and highly liquid
financial assets which are subject to insignificant risk of changes in their fair value, and are used by the Bank management for its short-
term commitments.

2.2.2 Loans and advances and Provisions

Loans and advances are stated in the balance sheet on gross basis. Interest is calculated on a daily product basis but charged and
accounted for on accrual basis. Interest of classified loans and advances is kept in suspense account as per Bangladesh Bank instructions
and such interest is not accounted for as income until realised from borrowers. Interest is not charged on bad and loss loans as per
guidelines of Bangladesh Bank. Records of such interest amounts are kept in separate memorandum accounts.

Commission and discounts on bills purchased and discounted are recognized at the time of realization. Provision for loans and advances
is made on the basis of the following instructions contained in Bangladesh Bank BRPD Circular no. 14, dated September 23, 2012, BRPD
Circular no. 05, dated May 29, 2013, BRPD Circular no. 16, dated November 18, 2014, BRPD Circular no. 12, dated August 20, 2018, BRPD
Circular no. 15, dated September 27, 2018 and BRPD Circular no. 1 dated February 2018, BRPD Circular no. 13 dated August 18 2018,
BRPD Circular no. 03 dated April 21,2019 . The rates of provision for loans and advances are given below:

Particulars Rate
General provision on unclassified small and medium enterprise financing 0.25%
General provision on unclassified loans / investments for housing finance 1%
General provision on loans for professionals and loans to BHs/MBs against share etc. 2%
General provision on unclassified consumer financing other than housing finance and professionals 2%
General provision on short term Agriculture/Micro Credit 1%
Other General provision on unclassified general loans and advances 1%
General provision on Special Mention Account (SMA) except Short Term Agriculture Loans 0.25%-2%
Specific provision on substandard loans and advances 20%
Specific provision on doubtful loans and advances 50%
Specific provision on bad / loss loans and advances 100%
Short Term Agriculture and Micro-credit loans and advances except Bad Loss 5%
Short Term Agriculture and Micro-credit loans and advances Bad Loss 100%

Loans and advances are written-off to the extent that (i) there is no realistic prospect of recovery, and (ii) against which legal cases are
pending for more than three years as per BRPD Circular 01, Dated: 06.02.2019 of Bangladesh Bank. These write-off however will not
undermine/affect the claim amount against the borrower. Detailed memorandum records for all such write off accounts are meticulously
maintained and followed up.

2.2.3 Investments

All investment securities are initially recognised at cost, being fair value of the consideration given, including acquisition charges
associated with the investment. Premiums are amortized and discounts are credited, using the effective yield method are taken to
discount income. The valuation method of investments used are:

Annual Report 2019 249

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Held to maturity (HTM)

Investments which have ‘fixed or determinable payments’ and are intended to be ‘held to maturity’ other than those that meet the
definition of ‘held at amortized cost’, are classified as held to maturity (HTM). These investments are subsequently measured at present
value as per Bangladesh Bank guidelines. Investments in securities have been revalued as marking to market as DOS circular letter no:-
05 dated 28 January 2009, the gain of revaluation from the held to maturity securities has been shown in the statement in changes in
equity of 31 December, 2019

Held for trading (HFT)

Investments classified in this category are acquired principally for the purpose of selling or repurchasing -in short-trading or if
designated as such by the management. After initial recognition, investments are measured at fair value and any change in the fair
value is recognised in the statement of income for the period in which it arises. These investments are subsequently revalued at current
market value on weekly basis as per Bangladesh Bank Guideline. Revaluation gain has been shown in revaluation reserve account &
revaluation loss has been shown in Profit & Loss account.

Value of investments has been enumerated as follows :

Items Applicable accounting value

Government treasury bills-HTM Amortized value
Government treasury bills-HFT Market value
Government treasury bonds-HTM Amortized value
Government treasury bonds-HFT Market value
Prize bond At cost
Unquoted shares and Debenture At cost
Quoted shares At cost

Investment in listed securities

These securities are bought and held primarily for the purpose of selling them in future, or held for dividend income. These are reported
at cost. Unrealized gains are not recognized in the profit and loss account. But provision for diminution in value of investment is provided
in the financial statements where market price is below the cost price of investments as per Bangladesh Bank guideline

Investment in unquoted securities

Investment in unlisted securities is reported at cost under cost method. Adjustment is given for any shortage of book value over cost for
determining the carrying amount of investment in unlisted securities.

Investments in subsidiary

Investment in subsidiaries is accounted for under the cost method of accounting in the Bank’s financial statements in accordance with
the IAS-27. Accordingly, investments in subsidiaries are stated in the Bank’s balance sheet at cost, less impairment losses (if any).

Corporate Bond

Investment in Corporate Bond is reported at cost under cost method. Adjustment is given for any shortage of book value over cost for
determining the carrying amount of investment in Corporate Bond.

Commercial Paper

Commercial Paper refers to secured/unsecured promissory note with a maturity of not less than 07 (seven) days and not more than 1
(one) year that is sold at a fixed rate of interest as per Bangladesh Bank BRPD Circular no-07 dated September 25, 2016.

2.2.4 Property, plant and equipment

Property, plant & equipment are recognized if it is probable that future economic benefits associated with the assets will flow to the
Bank and the cost of the assets can be reliably measured.

All fixed assets are stated at cost less accumulated depreciation as per IAS-16 “ Property, Plant and Equipment”. The cost of acquisition
of an asset comprises its purchase price and any directly attributable cost of bringing the asset to its working condition for its intended
use inclusive of inward freight, duties and non-refundable taxes.

250
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

The Bank recognises, in the carrying amount of an item of property, plant and equipment, the cost of replacing part of such an item
when that cost is incurred if it is probable that the future economic benefits embodied with the item will flow to the company and
the cost of the item can be measured reliably. Expenditure incurred after the assets have been put into operation, such as repairs and
maintenance, is normally charged off as revenue expenditure in the period in which it is incurred.

Revaluation of Land and Building: As per International Accounting Standard (IAS-16) revaluation should be made with sufficient
regulatory compliance to ensure that the carrying amount does not differ materially from that which would be determined using the
fair value at the end of reporting period. The fair value of Land and Buildings is usually determined from market based evidence by an
appraisal that is normally undertaken by professionally qualified Valuers. Therefore, any upward increases of the assets have positive
impact on the capital adequacy of the Bank (100% of the asset revaluation is considered as Tier-2 Capital subject to deduction as per
roadmap for implementation of BASEL-III). With a view to qualify for higher capital adequacy, the bank revalued its Land and Buildings
upon complying with all regulatory requirements.

Reducing balance method of depreciation is applied on Building and Furniture & fixture from the following month of acquisition and
straight line method applied on Mechanical Appliance, Computer, Motor vehicle and straight line method of amortization applied
on Software. Depreciation has been charged from the following month of acquisition, whereas no depreciation on assets which are
disposed off has been charged from the month of disposal. Assets category wise depreciation rates are as follows:

Category of fixed assets Rate

Land Ni
Buildings 2.50%
Furniture and fixtures 10%
Mechanical appliance 20%
Motor Vehicles 20%
Computer 20%
Category of fixed assets (ATM Assets) 20%
Software (Intangible Asset) 10%
Interior Decoration 10%

For additions during the year, depreciation is charged for the remaining days of the year and for disposal depreciation is charged up to
the date of disposal.

On disposal of fixed assets, the cost and accumulated depreciation are eliminated from the fixed assets schedule and gain or loss on
such disposal is reflected in the income statement, which is determined with reference to the net book value of the assets and net sale
proceeds.

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset have been capitalized
as part of the cost of the asset as per IAS-23.

Interior design not just stands with a look and beauty, added to beauty it also has the ability to showcase even a regular office to and
cool working place which has enough space with the help of proper design and comforting lighting.RBL is decorate working place as per
BRPD circular BRPD circular 02 dated 16 January 2014 and BRPD circular 01 dated 8 January 2019.

2.2.5 Intangible assets

An intangible asset is recognized if it is probable that the future economic benefits that are attributable to the asset will flow to the entity
and the cost of the assets can be measured reliably.

Software represents the value of computer application software licensed for use of the Bank, other than software applied to the operation
software system of computers. Intangible assets are carried at its cost, less accumulated amortization and any impairment losses.

Initial cost comprises license fees paid at the time of purchase and other directly attributable expenditure that are incurred in customizing
the software for its intended use. Expenditure incurred on software is capitalized only when it enhances and extends the economic
benefits of computer software beyond their original specifications and lives and such cost is recognized as capital improvement and
added to the original cost of software.

Software is amortized using the straight line method over the estimated useful life of 10 (Ten) years commencing from the date of the
application. Software is available for use over the best estimate of its useful economic life.

Annual Report 2019 251

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

2.2.6 Impairment of Assets:

The policy for all assets or cash-generating units for the purpose of assessing such assets for impairment is as follows:

The Bank assesses at the end of each reporting period or more frequently if events or changes in circumstances indicate that the
carrying value of an asset may be impaired, whether there is any indication that an asset may be impaired. If any such indication exits,
or when an annual impairment testing for an asset is required, the bank makes an estimate of the asset’s recoverable amount. When the
carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered as
impaired and is written down to its recoverable amount by debiting to profit & loss account.

Fixed assets are reviewed for impairment whenever events or charges in circumstances indicate that the carrying amount of an asset
may be impaired.

2.2.7 IFRS 16: Leases

IFRS 16 Leases is effective for the annual reporting periods beginning on or after 1 January 2019 which eliminates the current operating/
financing lease dual accounting model for leases. Instead, there is a single, on-balance sheet accounting model (except some limited
exception i.e. short-term lease, leases for low value items), similar to current finance lease accounting. Under IFRS 16, an entity shall be
recognizing a right-of-use (ROU) asset (i.e. the right to use the office building, branches, service center, call center, warehouse, etc.) and
a corresponding lease liability. The asset and the liability are initially measured at the present value of unavoidable lease payments. The
depreciation of the lease asset (ROU) and the interest on the lease liability is recognized in the profit and loss account over the lease
term replacing the previous heading ‘lease rent expenses.

The Bank observed that the implementation of IFRS 16 is expected to have impact on multiple dimensions including Risk Weighted
Assets, Regulatory Capital, and Liquidity Ratios, provisions of Immovable Property as well as other statutory requirements issued
by various regulators. In addition, there are no direction from National Board of Revenue (NBR) regarding treatment of lease rent,
depreciation on ROU assets and interest on lease liability for income tax purposes and applicability of VAT on such items.

In order to comply with IFRS 16, the Bank has initially identified the lease agreements of ‘All branches’ as low value asset and thereby
excluded from IFRS 16 requirement on the basis of paragraph 5. The bank is also reviewing all of its lease arrangements for ‘office
premises’ to finally assess the potential impact on implementation of IFRS 16 in the Balance Sheet and Profit and Loss Account of the
Bank for the year 2019.

But, due to COVID 19 pandemic the bank is operating with limited resources and will provide effect for implementation of IFRS 16 in the
financial year 2020 with retrospective effect, if necessary. In this backdrop, the management of the Bank is committed to observe the
market practice for uniformity and comparability and would take necessary actions in line with the regulatory guidelines and market
practice.

2.2.8 Other assets

Other assets include all balance sheet accounts not covered specifically in other areas of the supervisory activity and such accounts may
be quite insignificant in the overall financial condition of the Bank.

Provision for other assets

Other assets have been classified as per BRPD Circular No. 14 dated June 25, 2001 of Bangladesh Bank and necessary provisions have
been made thereon accordingly and for items not covered under the circular adequate provisions have been made considering their
reliability.

2.2.9 Securities purchased under re-sale agreement

Securities purchased under re-sale agreements are treated as collateralized lending and recorded at the consideration paid and interest
accrued thereon. The amount lent is shown as an asset either as loans and advances to customers or loans to other banks.

The difference between purchase price and re-sale price is treated as interest received and accrued evenly over the life of Repo
agreement.

2.2.10 Receivables

Receivables are recognised when there is a contractual right to receive cash or another financial asset from another entity.

2.2.11 Non-banking assets:

Non-banking assets are acquired on account of the failure of a borrower to repay the loan on time after receiving the decree from
the Court regarding the right and title of the mortgage property. The Bank has been awarded ownership of the mortgage properties
according to the verdict of the Honorable Court in accordance with the section 33 (7) of “Artharin Adalat-Ain 2003”. No such assets are
acquired in exchange for loans and advances during the year ended 31 December 2019.

252
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

2.2.12 Reconciliation of inter-bank/inter-branch account

Books of accounts with regard to inter-bank are reconciled on monthly Basis and there are no material differences which may affect the
financial statements significantly. Provision has been made in respect of un-reconciled entries in case of inter-branch transactions as on
the reporting date as considered prudent by the management. Details of un-reconciled entries of inter branch transaction accounts as
at 31 December, 2019 are given in Annexure-E.

2.3 Capital and Share Holders Equity

Capital management

The bank has a capital management process in place to measure, deploy and monitor its available capital and assess its adequacy. This
capital management process aims to achieve four major objectives; exceed regulatory thresholds and meet longer-term internal capital
targets, maintain strong credit rating, manage capital levels commensurate with the risk profile of the bank and provide the bank’s
shareholders with acceptable returns.

Capital is managed in accordance with the board approved capital management planning from time to time. Senior management
develops the capital strategy and oversees the capital management planning of the bank. The bank’s finance and risk management
department are key to implementing the bank’s capital strategy and managing capital. Capital is managed using both regulatory control
measure and internal matrix.

2.3.1 Authorized Capital

Authorized capital is the maximum amount of share capital that the Bank is authorized by its Memorandum and Articles of Association.
Details are shown in (note 14.1).

2.3.2 Paid up Capital

Paid up capital represents total amount of shareholders’ capital that has been paid in full by the ordinary shareholders. Holders of
ordinary shares are entitled to receive dividends as declared from time to time and are entitled to vote at shareholders’ meetings. In the
event of a winding-up of the Bank, ordinary shareholders are ranked after all other shareholders and creditors and are fully entitled to
any residual proceeds of liquidation. Details are shown in (note 14.2).

2.4 Statutory reserve

The statutory reserve has been maintained @20% of profit before tax in accordance with provisions of section 24 of the Bank Companies
Act, 1991 as amended up to 2013.

2.5 Revaluation reserve

When an asset’s carrying amount is increased as a result of a revaluation, the increased amount should be credited directly to equity
under the heading of revaluation surplus/ reserve as per IAS-16: Property, Plant and Equipment. The bank revalued the assets of
land and buildings during the year 2014 which are absolutely owned by the bank and the increased amount has been transferred to
revaluation reserve. The tax effects on revaluation gain are measured and recognised in the financial statements as per IAS-12: Income
Taxes. It also includes revaluation reserve on treasury bond- HFT & HTM in accordance with the DOS Circular no. 05, dated 26 May 2008
and subsequent changes.

2.6 Rupali Bank Sub-ordinated Bond

Rupali Bank has issued unsecured non-convertible sub-ordinated bond on 12 June 2018 after obtaining approval from regulatory
bodies. The bond has been fully redeemed during the year of 2025.

2.7 Contingent liabilities

A contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Bank; or

A present obligation that arises from past events but is not recognised because:

it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
the amount of the obligation cannot be measured with sufficient reliability.
Contingent liabilities are not recognised but disclosed in the financial statements unless the possibility of an outflow of
resources embodying economic benefits is reliably estimated.
Contingent assets are not recognised in the financial statements as this may results in the recognition of income which may
never be realised.

Annual Report 2019 253

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

2.8 Deposits and other accounts

Deposits by customers and banks are recognised when the Bank enters into contractual provisions of the arrangements with the
counterparties, which is generally on trade date, and initially measured at the consideration received.

2.9 Borrowings from other banks, financial institutions and agents

Borrowed funds include call money deposits, borrowings; re-finance borrowings and other term borrowings from banks, financial
institutions and agents. These are stated in the balance sheet at amounts payable. Interest paid / payable on these borrowings is
charged to the profit & loss account.

2.10 Basis for valuation of liabilities and provisions

2.10.1 Taxation

Income tax assessment has been finalized up to 2002 and case pending for the year 2003 to 2015. Income tax returns of 2016, 2017 &
2018 has been submitted but assessment is yet to be completed.

2.10.2 Current Tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the Statement of
Comprehensive and Other Income because it excludes items of income or expense that are taxable or deductible in other years or are
never taxable or deductible. Bank’s liability for current tax is calculated using tax rates that have been enacted the reporting period.

2.10.3 Provision for current taxation

Provision for current income tax has been made as per prescribed rate in the Finance Act, 2019 on the taxable income as per income tax
law and Bangladesh Accounting Standard (IAS) -12: “Income Taxes”.

2.10.4 Deferred taxation

Deferred tax is accounted for in accordance with IAS 12: “Income Taxes”. Deferred tax normally results in a liability being recognized
within the Statement of Financial Position. IAS 12 defines a deferred tax liability as being the amount of income tax payable in future
periods. Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and
the corresponding tax bases used in the computation of taxable profit, and are accounted for using the balance sheet liability method.
Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to the extent
that it is probable that taxable profits will be available against which deductible temporary differences, unused tax losses or unused tax
credits can be utilized. Such assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial
recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit
nor the accounting profit. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the company intends to
settle its current tax assets and liabilities on a net basis.

2.10.5 Benefits to the employees

The bank operates two alternative retirement benefit schemes for its permanent employees, elements of which are as under:

a) Contributory provident fund (CPF) scheme

(i) Employees’ contribution 10%
(ii) Bank’s contribution 10%
(iii) This fund is operated by a board comprising of 5 trustees

Gratuity scheme

The provision for the gratuity fund has been made in the books of account of the bank. The amount of provision is transferred to the
trustee board of the fund on requirement Basis. Employees enjoying contributory provident fund facilities are entitled to get gratuity
for 2 months last basic pay drawn for each completed year of services subject to completion of minimum 10 years of services. Provision
made for this purpose during the year under audit is adequate to settle the claims of the outgoing /retiring employees.

b) General provident fund scheme

Employees opted for pensions are also contributing minimum 10% of basic salary (maximum 25%) as per their desire to GPF. The bank
does not contribute any amount against these employees to the GPF. The employees also enjoy 13% rate of interest on the deposit of
GPF amount.

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 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

c) Provision for Pension & Gratuity scheme

A decision was taken in the Board Meeting No-1018 dated 31/01/2017 that required provision for pension & gratuity of the bank
calculated by an actuary firm and shortfall amounting Tk. 330.97 crore would have to be built up in the bank accounts over the next 9
(Nine) years. But recently as per a decision taken by the Ministry of Finance, pensioners cannot surrender 100% of their pension. So cash
outflow has been decreased for this purpose. Therefore a decision is taken further in the Board Meeting No-1049 dated 09/04/2018 that
required provision for pension & gratuity would have to be built up in the bank accounts over the next 25 (Twenty Five) years.

2.10.6 Other liabilities

Other liabilities comprise items such as provision for loans and advances/investments, provision for taxation, interest payable, interest
suspense, accrued expenses. Other liabilities are recognised in the balance sheet according to the guidelines of Bangladesh Bank,
Income Tax Ordinance 1984 and internal policy of the Bank.

2.10.8 Provision for liabilities

A provision is recognised in the balance sheet when the Bank has legal or constructive obligation as a result of a past event and it
is probable that an outflow of economic benefit will be required to settle the obligations, in accordance with the IAS 37 “Provisions,
Contingent Liabilities and Contingent Assets”.

2.10.9 Provision for Off-balance sheet exposures

Off-balance sheet items have been disclosed under contingent liabilities and other commitments as per Bangladesh Bank guidelines.
Banks are maintained provision against Off-balance sheet items as per BRPD Circular # 14, dated September 23, 2012 and BRPD Circular
# 07 dated June 21, 2018.

2.10.10 Provision for nostro accounts

As per instructions contained in the circular letter no. FEPD (FEMO) / 01 / 2005-677 dated 13 September 2005 issued by Foreign Exchange
Policy Department of Bangladesh Bank, provision is to be maintained for the un-reconciled debit balance of nostro account more than
3 months as on the reporting date of these financials. Since there is no unreconciled entries which are outstanding more than 3 months,
no provision is required to be maintained.

2.10.11 Provision for rebate to good borrower

As per BRPD Circular No. 06 (19 March 2015) and BRPD Circular Letter No 03 (16 February 2016) issued by Bangladesh Banks are required
to provide 10% rebate on the interest closed from “Good Borrowers” subject to some qualifying criteria. Accordingly, the Bank has kept
provision in the financial statements.

2.10.12 Provision for risk fund

As per BRPD circular 07 dated 05 July, 2015 no insurance needed in case of volt limit. As per bank policy Rupali Bank Ltd. has maintained
provision for risk fund (cash in safe, cash on counter, cash in transit & cash in ATM booth) according to board decision no. 996 dated 12
May, 2016.

2.11 Revenue recognition

2.11.1 Interest income

Interest income is recognised on accrual basis. Interest on unclassified loans and advances are calculated at the prescribed rates to be
taken into income. Interest is ceased to be taken into income when such loans and advances are marked as classified as per criteria
prescribed by the Bangladesh Bank. It is then kept in interest suspense account. Interest on classified advances is accounted for on a
cash receipt basis.

2.11.2 Investment income

Interest income on investments is recognized on accrual basis. Capital gain on investments in shares is also included in investment
income. Capital gain is recognized when it is realized.

Income on investment in treasury bills, bonds, preference shares and debenture, etc. other than equity shares has been
accounted for on accrual basis.
Govt. securities (HTM) are revalued on accrual basis and effect of such revaluation gain has been credited to Asset Revaluation
Reserve account.

Annual Report 2019 255

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Dividend on equity shares is recognized during the period in which it is declared and duly approved.
Net increase in securities held to maturity during the period due to the valuation at market to market basis has been credited
to Asset Revaluation Reserve account.
Discounting income on Government treasury bills (HFT)/Bangladesh Bank Bill (HFT) has been transferred to income account.
2.11.3 Fees and commission income

Fees and commission income arising on services provided by the Bank are recognised when those are realized. Commission charged to
customers on letters of credit and letters of guarantee is credited to income at the time of transactions being recorded in the books of
accounts.

2.11.4 Other operating income

Other operating income is recognized at the time when it is realized except rent of properties.

2.11.5 Interest paid on deposits and borrowings

Interest paid on deposits and borrowing are recognized on accrual basis.

2.11.6 Other expenses

Expenses incurred by the bank are recognized on accrual basis.

2.12 Earnings per Share

Basic earnings per share

Basic earnings per share have been calculated in accordance with IAS 33: Earnings per Share which has been shown on the face of
statement of comprehensive Income. This has been calculated by dividing the Basic earnings by the weighted average number of
ordinary shares outstanding during the year.

2.13 Events after the Reporting Period

Events after the reporting period that provide additional information about the company’s position at the Statements of Financial
Position (Balance sheet) date are reflected in the financial statements in note no. 46 as per International Accounting Standards (IAS)-10:
Events after the Reporting Period.

2.14 Credit Rating of the Bank

Rating 2018 2017 2016 2015

Standalone (Long term) A- A- A- A
Standalone (Short term) ST-3 ST-3 ST-3 AR-2
As Govt. Supported (Long term) AAA AAA AAA AAA
As Govt. Supported (Short term) ST-1 ST-1 ST-1 Stable

2.15 Litigation

The bank is not a party to any lawsuits except those arising in the normal course of business, which were filed against the default
clients for non-performance in loans repayment and against various level of tax authority regarding some disputed tax issues. The bank,
however, provides adequate provisions as per guidelines of IAS- 37.

2.16 Written Off

Write-off describes a reduction in recognized value. It refers to recognition of the reduced or zero value of an asset. Generally, it refers
to loan for which a return on the loan is now impossible or unlikely. The item’s potential return is thus canceled and removed from
(written off) the bank’s statement of financial position. Recovery against debts written off /provided for is credited to revenue. Income
is recognized where amounts are either recovered and/or adjusted against securities/properties or advances there-against or are
considered recoverable.

256
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

2.17 Risk Management

The bank has established effective risk management for steady and stable growth of the bank in accordance with the guidelines of
Bangladesh Bank. The risk management of the bank covers following six core risks areas of banking sector:

a) Credit risk;
b) Foreign exchange risk;
c) Asset-liability management risk;
d) Money laundering & terrorist financing risk;
e) Internal control and compliance risk;
f) Information and communication technology risk.

Risk is the likelihood of an undesirable event to occur or the effect of an adverse outcome. Banking risk is the potentiality of losing asset.
Banks face several types of risks. Risk is not just about threats and challenges; it is also about taking advantage of opportunities.

Risk management is the process of measuring or assessing the actual or potential dangers of a particular situation. It focuses on
reporting, oversight and segregation of duties within the organization.

The overall focus of risk management of Rupali Bank Ltd. (RBL) in 2019 was on maintaining bank’s risk profile in line with bank’s risk
strategy, strengthening its capital Base and supporting the bank’s strategic goals. The activity of the risk management is given below:

Board of Directors
Approves policies and processes of Risk
Management (RM)

Board Audit Committee

Reviews internal control system, internal
audit of the Bank

Board Risk Management Reviews risk management policies &

Committee activities of the Bank

Committee at Management level (MAC Monitor & review adequacy & efficacy of control
& MANCOM) systems through related RM committees

RM Committees (ALCO, MCC, FEx, AML,

ICC & ICT) Manage various risks at different levels

As per BRPD circular no. 11 dated October 2013 Risk Management Committee of the Board has been formed and the committee has
already started its operation.

a) Credit Risk Management

Credit risk is one of the prime risks of a bank. It indicates the potential loss arising from any credit approval subject to the banking
regulations in force or to be imposed by the regulatory body and to the changes in the banking policy. Data collection check list and
limit utilization form are being prepared for regular assessment.

Internal Credit Risk Rating System (ICRRS) has been adapted by RBL as Bangladesh bank’s instruction. The system defines the risk profile
of borrowers to ensure that account management, structure and pricing are commensurate with the risk involved. The ICRRS will be
applicable for all exposures save for consumer loans, small enterprises with total loan exposure of less than Tk 50 lakh, short-term loans,
microcredit and lending to banks, non-bank financial institutions and insurance. It has given more emphasis on leverage and cash flow.
A highly leveraged concern or a firm having poor/negative cash flow is very likely to generate low score in new rating-ICRRS. If a company
scores poor, still it can get loan, if the concerned borrower’s bank can properly justify the lending. In case of score 80 and above it will
be marked ‘Excellent’, for 70 to 79, it will be ‘Good’, for 60 to 69, it will be ‘Marginal’ and for below 60, ‘Unacceptable’. If a company scores

Annual Report 2019 257

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

‘Unacceptable’ in ICRRS, borrower bank still can renew their credit facilities for 2 (two) more times. So a firm has still chance to improve
in its financial and other parameters and can utilize existing credit lines till that time.

ICRRS have two analysis parts: quantitative and qualitative. 60 per cent weight is assigned to quantitative part while rest 40 per cent
weight is assigned to qualitative part.

The components of Quantitative part are as follows:

Operational efficiency Liquidity

Profitability Coverage

Leverage Earning quality

The components of Qualitative part are as follows:

Relationship risk Business and industry risk

Management risk Security risk

Performance
Compliance risk
behavior

b) Foreign Exchange Risk Management

Foreign Exchange risk is the risk of declines in cash flows and asset values of a bank due to change in exchange rate. The responsibility
of Foreign Exchange Risk Management of RBL is on the Foreign Trade Finance & International Division.

In compliance with the Bangladesh Bank Guidelines, RBL has prepared Foreign Exchange Risk Management Manual. Treasury front
office, back office and mid office have been established and are functioning through an independent organizational chain in accordance
with the terms and conditions of the manual.

The dealers of the bank are responsible for risk management of its overall Statement of Financial Position and when any unusual/
suspicious transaction occurs, it is reported as STR (suspicious transaction report) to CCU (Central Compliance Unit). CCU examines the
report properly and sends to Bangladesh Bank with Comments of the CAMLCO, if it is reportable.

c) Asset Liability Risk Management

Asset and liability management (ALM) is the ongoing process of formulating, implementing, monitoring the bank’s assets and liabilities
to achieve its financial objectives within risk appetite, It enables bank to measure and monitor risk and provide suitable strategies for
their management . The main objectives of ALM are to manage Statement of Financial Position risk i.e. liquidity risk, interest rate risk,
currency risk and to maintain adequate capital.

RBL has its own guideline for asset liability management which is approved by RBL’s Board of Directors. Considering all risk factors,
the bank has established an effective ALM process for assessing, analyzing and reviewing various kinds of risk exposures arising from
composition and dynamics of the Statement of Financial Position. Asset Liability Committee (ALCO) of RBL regularly reviews these risk
exposures in the following manners:

258
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

It advises for both the opportunities and threats to its liquidity and Statement of Financial Position as well as positions of
maturing assets and liquidity contingency plan.

It monitors the liquidity management of treasury by-

Setting tolerance for cumulative cash flow mismatches (maximum cumulative outflow limit 20% of Statement of
Financial Position assets), LCR limit, NSFR limit and Leverage Ratio.

Setting limit on loan to deposit ratio (81% expected,110% maximum),

Setting limit on dependence on institutional deposits that are volatile in nature.

ALCO also monitors the rate sensitive assets and liabilities of the bank.

ALM desk plays vital role in managing liquidity, interest sensitive assets and interest sensitive liabilities. ALCO paper is the main support
for ALCO meeting in taking decision. This paper is prepared by the ALM desk. In RBL, ALCO paper contains all the information regarding
liquidity based on historical requirements, current liquidity position, anticipated future funding requirement, sources of fund and
options for reducing funding needs, present and anticipated asset quality, present and future earning capacity along with capital
position. Thus all the decisions are made based on practical scenario.

RBL has established a separate Treasury Division to strengthen its asset liability management, implement the Asset Liability Manual of
RBL as well as managing risk proactively.

Basel III Liquidity Ratios:

Bangladesh Bank issued separate note on LCR and NSFR under Basel III. These ratios represent the way forward in ALM through
Liquidity measurement and management. These ratios along with the liquidity gap should be central to liquidity measurement and
management.

Liquidity Coverage Ratio (LCR):

Liquidity Coverage Ratio is a new liquidity standard. This standard is built on the methodology of traditional liquidity coverage ratio
used by banks to assess expose to contingent liquidity events.

Net Stable Funding Ratio (NSFR):

Net Stable Funding Ratio (NSFR) is another new standard. The NSFR aims to limit over-reliance on short term wholesale funding during
times of abundant market liquidity and encourage better assessment of liquidity risk across all on and off- Statement of Financial
Position items.

Leverage Ratio:

ALM Committee of RBL has to maintain Leverage ratio with the instruction of Bangladesh Bank both at solo and consolidate basis.

d) Money Laundering & Terrorist Financing Risk Management

RBL has its own guideline, approved by the Board of Directors, for prevention of money laundering in line with Anti Money Laundering
(AML) Law and Bangladesh Bank guidelines. Anti Money Laundering Division of RBL is responsible for Money Laundering Risk
Management of RBL.

RBL has a Central Compliance Unit (CCU) headed by the Chief Anti Money Laundering Compliance Officer (General Manager) and Money
Laundering Prevention Committee (MLPC) headed by Deputy Managing Director to supervise the overall AML and CFT activities.

Each branch of RBL has an Anti Money Laundering Compliance Officer (BAMLCO) who is responsible for ensuring compliance with
Bangladesh Bank instructions relating to AML/CFT (Anti Money Laundering/ Combating financing of Terrorism) activities in the branch.
Risk is identified by the branch through analyzing the KYC (know your customer) and TP (Transaction profile). CTR (cash transaction
report) is sent to the Head Office on monthly basis for cash transaction of 10 (ten) lac or above in a day. All these reports are sent to
Bangladesh Bank through special software within 21st of every month.

Customers are graded on the basis of risk and high risk customers are closely monitored and enhanced due diligence is applied.

Self-assessment is done by the branches and summary report is prepared and submitted to the management and Bangladesh
Bank on half yearly basis.

Independent testing procedure is done while conducting audit in the branches .The same is summarized and placed before the
management and Bangladesh Bank on half yearly basis.

Annual Report 2019 259

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

As per Bangladesh Bank’s AML circular no.24 dated 03 march 2010 branches have been instructed to apply enhanced due
diligence (EDD) in opening & maintaining accounts of politically exposed persons, their family members & close associates.

As a part of core risk inspection system check on money laundering has been introduced by CCU at branch level.

Monthly meeting of central compliance unit (CCU) and Branch compliance unit (BCU) are arranged and the decisions are
gradually implemented.

Before establishing correspondent banking relationship, status on money laundering prevention and combating terrorist
financing of the respondent banks are obtained through a questionnaire developed by the Bangladesh Bank. Correspondent
banking relationship with any bank is established on receipt of the desired information and subject to our satisfaction.

Management Reporting System (MRS) Committee has been formed with a General Manager as its head.

Health report of the bank is prepared annually and placed to the audit committee as well as to the Board of Directors.

e) Internal Control and Compliance Risk

Internal control structure and system are essential to the capital assessment process. The process includes an independent review and,
where appropriate, the involvement of internal or external audits. RBL has its own ICC manual.

Board of Directors Head of Compliance

Head of
Managing Director Internal Control &
Compliance
Head of Monitoring Head of Audit
& Inspection

Fig: Internal control structure of ICC

The functions of three divisions of ICC (Monitoring, Audit & Inspection and Compliance) are to manage the cross divisional and cross
regional operational risk as well as risk concentrations at branch level. These divisions ensure a consistent application of the operational
risk management strategy across the bank.

Audit & Inspection division performs risk-oriented reviews of the design and operating effectiveness of RBL’s system of internal controls.
Internal audit is conducted on periodical intervals to ensure compliance with the policies of the bank and regulatory bodies.

The management Committee (MANCOM) headed by honorable managing director reviews overall control system of the bank and a
certificate is provided to the board of directors (BOD) in this regard. As per instruction of audit committee of the Board, compliance
division places the quarterly position of internal control and compliance of the bank before the committee on regular basis. As a part
of internal control and compliance and as per instruction of Bangladesh Bank, risk management unit was formed headed by deputy
managing director where all the divisional heads are the members and division head, Compliance division is the member secretary. The
committee is responsible to the managing director for implementation of the decisions. Monthly meeting of risk management unit is
arranged on regular basis where different risk areas are discussed, minutes and decision are implemented. Minutes of risk management
unit meeting along with risk management papers are submitted to Bangladesh Banks Departments of Off-Site supervision (DOS) on
quarterly basis. Stress testing is conducted on quarterly basis to assess the impact of different risk associated with banking business
on asset liability. As per Bangladesh Bank ICC guideline, management reporting system committee was formed headed by deputy
managing director. In the meeting of management reporting system committee banks MIS affairs are discussed, minutes and decisions
are gradually implemented. The committee is responsible to the managing director for implementation of the decisions.

260
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

f) Information Communication Technology (ICT) Risk Management

RBL has its IT Policy prepared in line with the ICT Guidelines of Bangladesh Bank.

Physical security of RBL ensures environmental safeguards as well as controlling physical access to equipment and data depending on
IT setup. The risk management of physical security involves three tiers:

Tier-1 for data center including disaster recovery site,

Tier-2 for server room and

Tier-3 for standalone computers or ATM.

At the moment, Rupali Bank Ltd. does not have the proper infrastructure for all these. Information security measures is applicable to
all functional tiers, includes password control, user ID maintenance, input control, network security, data encryption, virus protection,
internet and e-mail.

The data center of RBL as well as automation is on the process. IT policy regarding physical security and information security for risk
management is yet to be fully implemented. Risk is identified by the branch. Internal IT Audit is conducted by Computer and Audit
Inspection Division on half yearly basis. A limited number of IT professionals are recruited and several trainings are provided to the
related employees.

2.17.2 Liquidity risk

The object of liquidity risk management is to ensure that all foreseeable funding commitments and deposit withdrawals can be met
when due. To this end, the Bank is maintaining a diversified and stable funding base comprising of core retail and corporate deposits and
institutional balance (note - 13a). Management of liquidity and funding is carried out by Treasury Department under approved policy
guidelines. Treasury front office is supported by a very structured Mid office and Back office. The Liquidity management is monitored by
Asset Liability Committee (ALCO) on a regular basis. A written contingency plan is in place to manage extreme situation.

2.17.3 Market risk

The exposure of market risk of the Bank is restricted to foreign exchange risk, interest rate risk and equity risk.

Foreign exchange risk.

Foreign exchange risk is defined as the potential change in earnings due to change in market prices. The foreign exchange risk of the
Bank is minimal as all the transactions are carried out on behalf of the customers against underlying L/C commitments and other
remittance requirements. No foreign exchange dealing on Bank’s account was conducted during the year.

Treasury Department independently conducts the transactions and the back office of treasury is responsible for verification of the deals
and passing of their entries in the books of account. All foreign exchange transactions are revalued at Mark-to-Market rate as determined
by Bangladesh Bank at the month-end. All Nostro accounts are reconciled on a monthly basis and outstanding entry beyond 30 days is
reviewed by the management for its settlement. The position maintained by the bank at the end of day was within the stipulated limit
prescribed by the Bangladesh Bank.

Interest rate risk

Interest rate risk may arise either from trading portfolio or non-trading portfolio. The trading portfolio of the Bank consists of Government
treasury bills of 28 days maturity. The short-term movement in interest rate is negligible or nil. Interest rate risk of non-trading business
arises from mismatches between the future yield of an asset and its funding cost. Asset Liability Committee (ALCO) monitors the interest
rate movement on a regular basis.

Equity risk

Equity risk arises from movement in market value of equities held. The risks are monitored by Investment Committee under a well
designed policy framework. The market value of equities held was, however, lower than the cost price at the balance sheet date
(Annexure-B).

2.17.4 Reputation risk arising from money laundering incidents

Money laundering risk is defined as the loss of reputation and expenses incurred as penalty for being negligent in prevention of money
laundering. For mitigating the risks, the Bank has a designated Chief Compliance Officer at Head Office and Compliance Officers at
branches, who independently review the transactions of the accounts to verify suspicious transactions. Manuals for prevention of

Annual Report 2019 261

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

money laundering have been established and transaction profile has been introduced. Training is continuously given to all category of
Officers and Executives for developing awareness and skill for identifying suspicious activities / transactions.

2.17.5 Operational risk

Operational risk may arise from error and fraud due to lack of internal control and compliance. Management through Internal Control
and Compliance Division controls operational procedure of the Bank. Internal Control and Compliance Division undertakes periodical
and special audit of the branches and divisions at the Head Office for review of the operation and compliance of statutory requirements.
The Audit Committee of the Board subsequently reviews the reports of the Internal Control and Compliance Division.

2.18. Management Responsibility on Statements

The Management takes the responsibility for the preparation and presentation of the financial statements.

2.19. Related Party Transactions

As per International Accounting Standard (IAS) 24 : Related Party Disclosures, parties are considered to be related if one of the parties has
the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions.
The bank carried out transactions in the ordinary course of business on an arm’s length basis at commercial rates with its related parties.

During the year the bank has some transactions with the government (majority shareholder of the bank) & Government owned
Corporation organization Company in respect of banking business like loans and advances, guarantees and commitments as mentioned
below:

Disclosure on Related party transactions during the year ended 31 December, 2019 as per IAS-24
Related party Transaction
Sl. No. Name of Related Party Nature
relationship Amount
1 Government (Note-7.07) Majority share holder 1270.22 Loans and Advances
2 Government (Note-9.08.02) Majority share holder 600.66 Advance Income Tax
3 Government (Note-6.01) Majority share holder 6335.28 Government Securities
4 Government (Note-12.06) Majority share holder 17,116.21 Deposit
5 Government (Note- 21) Majority share holder 3260.50 L/C
6 Government (Note- 21.01) Majority share holder 468.04 Guarantee

2.19.1 Audit committee disclosures

Audit Committee (AC) of the Board was formed and its roles and responsibilities were defined in line with Corporate Governance Code
issued by Bangladesh Securities and Exchange Commission (BSEC) vide BSEC notification BSEC/ CMRRCD/2006-158/Admin/80 dated
June 03, 2019 and BRPD Circular no.11 dated October 27, 2013 issued by Bangladesh Bank. The current Audit Committee (AC) was re-
constituted by the Board of Directors of the Bank in 2019.

During the year 2019, the Audit Committee of the Board conducted 12 (Twelve) meetings in which the important issues were discussed/
reviewed.

Meeting
SL. No Name of Directors Position & status Date of appointment Attended
held
1 2 3 4 5 6
01 Professor Dr. Sushil Ranjan Howlader Independent Director 15-05-2016 5 5
02. Mr. Arijit Chowdhury Director 06-01-2016 12 12
03. A K M Delwer Hussain, FCMA Director 06-02-2017 12 12
04. Mr. Mohammad Abdul Baset Khan Independent Director 11-01-2017 12 12

2.19.2 Risk management committee disclosures

The Board of Directors constituted with the following 9 (Nine) members Risk Management Committee of the Board, the third Committee
of the Board besides the Executive Committee and the Audit Committee in accordance with Bank Company (Amendment) Act 2013 and
it does comply with the BRPD Circular no. 11, dated October 27, 2013.

262
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

SL. No Name of Directors Position & Status Date of appointment Meeting held Attended
1 2 3 4 5 6
01. Mohammad Delwar Hossain Director 23.07.2019 6 1
02 Mr. Arijit Chowdhury Director 06.01.2016 6 1
03. A K M Delwer Hossain , FCMA Director 06-02-2017 6 1
04. Mr. Md. Rizwanul Huda Director 08-02-2018 6 6
05. Md. Khalilur Rahman Director 29.01.2019 6 1
06. Dr. Md. Hasibur Rashid Director 10-07-2016 6 5
07. Mr. Dina Ahsan Director 20-06-2016 6 3
08. Mr. Mahiuddin Faruqui Director 10-07-2016 6 2
09. Mr. Abu Sufian Director 10-07-2016 6 4

The Risk Management Committee of the Board has been formed after the Central Bank’s instruction issued in October 27, 2013. The
Committee conducted 6 (Six) meeting during the year where the following important issues were discussed / reviewed:

Discussion of Sustainable Finance Activities

Review of restructured Large loans

Review of Information Security Policy and Procedures of the Bank

Review of Fraud Detection and Management Process

Review of Comprehensive Risk Management Report

Review of Borrower Rating and Capital Management status

Review of Stress Testing of the Bank

Review of Green Banking Policy

Risk Appetite Statement of the Bank

Internal Capital Adequacy Assessment Process of the Bank

Review of Quarterly Risk Management Report

Discussion on Annual Report of AML/CFT activities of last year

2.19.3. List of Directors in Rupali Bank Ltd. as on 31 December, 2019.

Sl. No Name of the Directors Designation Status

1 Mr. Monzur Hossain Director & Chairman Appointed on 02.04.2015 Re-Appointed on 02.04.18
2 Mr. Arijit Chowdhury Director Appointed on 06.01.2016
3 Mr. Dina Ahsan Director Appointed on 20.06.2016
4 Mr. Mohiuddin Faruqui Director Retired on 27.05.2016 & Re-Appointed on 10.07.16
5 Professor Dr. Md. Hasibur Rashid Director Retired on 27.05.2016 & Re-Appointed on 10.07.16
6 Mr. Abu Sufian Director Retired on 07.07.2016 & Re-Appointed on 10.07.16
7 A K M Delwer Hossain , FCMA Director Appointed on 06-02-2017
8 Mr. Md. Rizwanul Huda Director Appointed on 08-02-2018
9 Md Khalilur Rahman Director Appointed on 29.01.2019
10 Mohammad Delwar Hossain Director Appointed on 23.07.2019
11 Professor Dr. Sushil Ranjan Howlader Independent Director Re-Appointed on 15.05.16
12 Mohammad Abdul Baset Khan Independent Director Appointed on 11-01-2017
13 Md. Ataur Rahman Prodhan Managing Director & CEO Retired on 27.08.2019
14 Mr. Md. Obeyed Ullah Al Masud Managing Director & CEO Appointed on 28.08.2019

Annual Report 2019 263

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

2.20 Memorandum items

Memorandum items are maintained to have control over all items of importance and for such transactions where the Bank has only
a business responsibility and no legal commitment. Bills for collection, savings certificates, wage earners bonds etc. fall under the
memorandum items. However, Bills for Collection is shown under contingent liabilities as per Bangladesh Bank’s format of reporting.

2.21 Compliance report on International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS)

The Institute of Chartered Accountants of Bangladesh (ICAB) is the sole authority for adoption of Bangladesh Accounting Standards (IAS)
and International Financial Reporting Standards (IFRS). While preparing the financial statements, Rupali Bank applied all the applicable
IAS and IFRS as adopted by ICAB. Details are given below:

International Accounting Standards (IAS)

Name of the IAS IAS no Status

Presentation of Financial Statements 1 Applied*
Inventories 2 N/A
Statement of Cash Flows 7 Applied
Accounting Policies, Changes in Accounting Estimates and Errors 8 Applied
Events after the reporting period 10 Applied
Construction Contracts 11 N/A
Income Taxes 12 Applied
Property, Plant and Equipment 16 Applied
Leases 17 N/A
Employee Benefits 19 Applied
Accounting for Government Grants and Disclosure of Government Assistance 20 N/A
The Effects of Changes in Foreign Exchange Rates 21 Applied
Borrowing Costs 23 Applied
Related Party Disclosures 24 Applied
Accounting and Reporting by Retirement Benefit Plans 26 N/A **
Separate Financial Statements 27 Applied
Interests in Joint Ventures 31 N/A
Financial Instruments: Presentation 32 Applied *
Earnings per share 33 Applied
Interim Financial Reporting 34 Applied ***
Impairment of Assets 36 Applied
Provisions, Contingent Liabilities and Contingent Assets 37 Applied
Intangible Assets 38 Applied
Investment Property 40 N/A
Agriculture 41 N/A
Lease 16 N/A

Name of the IFRS IFRS no Status

First time adoption of Bangladesh Financial Reporting Standards 1 N/A
Shares based Payment 2 N/A
Business Combinations 3 Applied
Insurance Contract 4 N/A
Non-current Assets Held for Sale and Discontinued Operations 5 N/A
Exploration for and Evaluation of Mineral Resources 6 N/A
Financial Instruments: Disclosure 7 Applied
Operating Segments 8 Applied
Financial Instrument 9 Applied
Consolidated Financial Statements 10 Applied
Joint Arrangement 11 N/A
Disclosure of Interest in other entities 12 N/A
Fair Value Measurement 13 Applied
Regulatory deferral accounts 14 N/A
Revenue from contractors with customers 15 Applied
N/A= Not Applicable

264
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

2.22 International Financial Reporting Standards (IFRS)

In order to comply with certain specific rules and regulations of the local Central Bank (Bangladesh Bank) which are different to IAS/IFRS,
some of the requirements specified in these IAS/IFRSs are not applied. Refer below (note-2.23) for such recognition and measurement
differences that are most relevant and material to the Bank and the Group.

This Standard regards a retirement benefit plan as a reporting entity separate from the employers of the participants in the plan.
Therefore, it is not applicable for the Bank’s annual report as it is the employer and not the retirement benefit plan itself.

The objective of IAS 34 is to prescribe the minimum content of an interim financial report and to prescribe the principles for recognition
and measurement in complete or condensed financial statements for an interim period and hence it is not applicable for annual
financial statements. However, the Bank being a listed entity in Dhaka and Chittagong Stock Exchanges regularly publishes Interim
Financial Report complying with IAS 34.

New accounting standards not yet adopted:

The Bank has consistently applied the accounting policies as set out in Note 2 to all periods presented in these financial statements. The
various amendments to standards, including any consequential amendments to other standards, with the date of initial application of
1 January 2019 have been considered. However, these amendments have no material impact on the financial statements of the Bank.

A number of standards and amendments to standards are effective for annual periods beginning after 1 January 2019 and earlier
application is permitted. However, the Bank has not early applied the following new standards in preparing these financial statements.

2.23 Departures from IAS/IFRS

The consolidated financial statements of the Group and the financial statements of the Bank as at and for the year ended 31 December
2019 have been prepared under the historical cost convention except investments and in accordance with the “First Schedule” (section
38) of the Bank Companies Act 1991, as amended by Bangladesh Bank (the Central Bank of Bangladesh) through BRPD Circular No. 14
dated 25 June 2003, other Bangladesh Bank Circulars, International Financial Reporting Standards (IFRSs), the Companies Act 1994, the
Securities and Exchange Rules 1987, Dhaka and Chittagong Stock Exchange’s listing regulations. In case, any requirement of provisions
and circulars issued by Bangladesh Bank differs with those of other regulatory authorities, the provisions and circulars issued by
Bangladesh Bank shall prevail. Material departures from the requirements of IFRS are as follows:

Investment in shares and Securities

IFRS: As per requirements of IFRS 9, classification and measurement of investment in shares and securities will depend on how these
are managed (the entity’s business model) and their contractual cash flow characteristics. Based on these factors it would generally fall
either under “at fair value through profit or loss account” or under “at fair value through other comprehensive income” where any change
in the fair value (as measured in accordance with IFRS 13) at the year-end is taken to profit and loss account or other comprehensive
income respectively.

Bangladesh Bank: As per Banking Regulation and Policy Department (BRPD) circular no. 14 dated 25 June 2003 investments in quoted
shares and unquoted shares are revalued at the year end at market price and as per book value of last audited balance sheet respectively.
Provision should be made for any loss arising from diminution in value of investment; otherwise investments are recognised at cost.

Revaluation gain/loss on Government securities

IFRS: As per requirement of IFRS 9 where securities will fall under the category of fair value through profit or loss account, any change
in the fair value of assets is recognised through the profit and loss account. Securities designated as amortized cost are measured at
effective interest rate method and interest income is recognised through the profit and loss account.

T-bills and T-Bonds designated as “held to maturity” are measured at amortised cost method and interest income is recognised through
the profit and loss account.

Bangladesh Bank: HFT securities are revalued on the Basis of mark to market and at year end any gains on revaluation of securities
which have not matured as at the balance sheet date are recognised in other reserves as a part of equity and any losses on revaluation
of securities which have not matured as at the balance sheet date are charged in the profit and loss account. Interest on HFT securities
including amortization of discount are recognised in the profit and loss account. HTM securities which have not matured as at the
balance sheet date are amortized at the year end and gains or losses on amortization are recognised in other reserve as a part of equity.

Provision on loans and advances

IFRS: As per IFRS 9 an entity shall recognise an impairment allowance on loans and advances based on expected credit losses. At each
reporting date, an entity shall measure the impairment allowance for loans and advances at an amount equal to the lifetime expected

Annual Report 2019 265

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

credit losses if the credit risk on these loans and advances has increased significantly since initial recognition whether assessed on
an individual or collective Basis considering all reasonable information, including that which is forward-looking. For those loans and
advances for which the credit risk has not increased significantly since initial recognition, at each reporting date, an entity shall measure
the impairment allowance at an amount equal to 12 month expected credit losses that may result from default events on such loans
and advances that are possible within 12 months after reporting date.

Bangladesh Bank: As per BRPD circular No.16 (18 November 2014), BRPD circular No.14 (23 September 2012), BRPD circular No. 19 (27
December 2012), BRPD circular No. 05 (29 May 2013) and BRPD circular No.1 (20 February 2019) a general provision at 0.25% to 5% under
different categories of unclassified loans (good/standard loans) has to be maintained regardless of objective evidence of impairment.
Also specific provision for sub-standard loans, doubtful loans and bad losses has to be provided at 5%, 20%, 50% and 100% respectively
for loans and advances depending on time past due. Again as per BRPD circular no. 10 dated 18 September 2007 and BRPD circular no.
14 dated 23 September 2012, a general provision at 1% is required to be provided for all off-balance sheet exposures. Such provision
policies are not specifically in line with those prescribed by IFRS 9.

Recognition of interest in suspense

IFRS: Loans and advances to customers are generally classified at amortized cost as per IFRS 9 and interest income is recognised by
using the effective interest rate method to the gross carrying amount over the term of the loan. Once a loan subsequently become
credit-impaired, the entity shall apply the effective interest rate to the amortized cost of these loans and advances.

Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, once a loan is classified, interest on such loans are not
allowed to be recognised as income, rather the corresponding amount needs to be credited to an interest in suspense account, which
is presented as liability in the balance sheet.

Other comprehensive income

IFRS: As per IAS 1 Other Comprehensive Income (OCI) is a component of financial statements or the elements of OCI are to be included
in a single other comprehensive income (OCI) statement.

Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which will strictly be followed by all banks. The
templates of financial statements issued by Bangladesh Bank do not include Other Comprehensive Income nor are the elements of
Other Comprehensive Income allowed to include in a Single Comprehensive Income (OCI) Statement. As such the company does not
prepare the other comprehensive income statement. However elements of OCI, if any, are shown in the statements of changes in equity.

Financial instruments – presentation and disclosure

In several cases Bangladesh Bank guidelines categorise, recognise, measure and present financial instruments differently from those
prescribed in IFRS 9. As such full disclosure and presentation requirements of IFRS 7 and IAS 32 cannot be made in the financial
statements.

Repo and Reverse Repo transactions

IFRS: As per IFRS 9 when an entity sells a financial asset and simultaneously enters into an agreement to repurchase the asset (or a
similar asset) at a fixed price on a future date (repo), the arrangement is treated as a loan and the underlying asset continues to be
recognised at amortized cost in the entity’s financial statements. The difference between selling price and repurchase price will be
treated as interest expense. The same rule applies to the opposite side of the transaction (reverse repo).

Bangladesh Bank: As per DOS Circular letter no. 6 dated 15 July 2010 and subsequent clarification in DOS circular no.2 dated 23 January
2013, when a bank sells a financial asset and simultaneously enters into an agreement to repurchase the asset (or a similar asset) at a
fixed price on a future date (repo or stock lending), the arrangement is accounted for as a normal sales transactions and the financial
assets are derecognized in the seller’s book and recognized in the buyer’s book. However, as per DMD circular letter no.7 dated 29 July
2012, non primary dealer banks are eligible to participate in the Assured Liquidity Support (ALS) programme, whereby such banks may
enter collateralized repo arrangements with Bangladesh Bank. Here the selling bank accounts for the arrangement as a loan, thereby
continuing to recognise the asset.

Financial guarantees

IFRS: As per IFRS 9, financial guarantees are contracts that require the issuer to make specified payments to reimburse the holder for a
loss it incurs because a specified debtors fails to make payment when due in accordance with the original or modified terms of a debt
instrument. Financial guarantee liabilities are recognised initially at their fair value plus transaction costs that are directly attributable
to the issue of the financial liabilities. The financial guarantee liability is subsequently measured at the higher of the amount of loss
allowance for expected credit losses as per impairment requirement and the amount initially recognised less, income recognised in
accordance with the principles of IFRS 15. Financial guarantees are included within other liabilities.

266
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Bangladesh Bank: As per BRPD 14,June 25, 2003 financial guarantees such as letters of credit, letters of guarantee will be treated as Off-
Balance Sheet items. No liability is recognized for the guarantee except the cash margin.

Cash and cash equivalent

IFRS: Cash and cash equivalent items should be reported as cash item as per IAS 7.

Bangladesh Bank: Some highly liquid assets such as money at call and short notice, T-bills, prize bonds are not prescribed to be shown
as cash and cash equivalents rather shown as face item in the balance sheet. However, in the cash flow statement, money at call and
short notice and prize bonds are shown as cash and cash equivalents beside cash in hand, balance with Bangladesh Bank and other
banks.

Non-banking asset

IFRS: No indication of Non-banking asset is found in any IFRS.

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, there must exist a face item named Non-banking asset.

Cash flow statement

IFRS: Cash flow statement can be prepared either in direct method or in indirect method. The presentation is selected to present these
cash flows in a manner that is most appropriate for the business or industry. The method selected is applied consistently.

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, cash flows is the mixture of direct and indirect method.

Balance with Bangladesh Bank: (CRR)

IFRS: Balance with Bangladesh Bank should be treated as other asset as it is not available for use in day to day operations as per IAS 7.

Bangladesh Bank: Balance with Bangladesh Bank is treated as cash and cash equivalents.

Presentation of intangible asset

IFRS: An intangible asset must be identified and recognized, and the disclosure must be given as per IAS 38.

Bangladesh Bank: There is no requirement for regulation of intangible assets in BRPD 14,June 25, 2003.

Off-balance sheet items

IFRS: There is no concept of off-balance sheet items in any IFRS; hence there is no requirement of disclosure of off-balance sheet items.

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, off balance sheet items (e.g. Letter of credit, Letter of guarantee etc.)
must be disclosed separately on the face of balance sheet.

Disclosure of appropriation of profit

IFRS: There is no requirement to show appropriation of profit in the face of statement of comprehensive income.

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, an appropriation of profit should be disclosed in the face of profit
and loss account.

Loans and advance net of provision

IFRS: Loans and advances should be presented net of provisions.

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, provision on loans and advances are presented separately as liability
and cannot be netted off against loans and advances.

2.24 The Bank’s compliance with related pronouncements by Bangladesh Bank:

Internal Control

The objective of internal control is to ensure that management has reasonable assurance that (i) operations are effective, efficient and
aligned with strategy, (ii) financial reporting and management information is reliable, complete and timely accessible, (iii) the entity is in
compliance with applicable laws and regulations as well as its internal policies and ethical values including sustainability, and (iv) assets
of the company are safeguarded and frauds & errors are prevented or detected.

Annual Report 2019 267

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Rupali Bank Limited has established an effective internal control system whose primary aim is to ensure the overall control of risks and
provide reasonable assurance that the objectives set by the Bank will be met. It has designed to develop a high level risk culture among
the personnel of the Bank, establish efficient and qualified operating model of the Bank, ensure reliability of internal and external
information including accounting and financial information, secure the Banks operations and assets, and comply with laws, regulatory
requirements and internal policies.

The Board of Directors of Rupali Bank Limited, through its Audit Committee, periodically reviews the effectiveness of Bank’s internal
control system covering all the material controls, including financial, operational and compliance controls, risk management systems,
the adequacy of resources, qualifications and experience of staff of the accounting and financial reporting function, training programs,
budget, etc. Audit Committee of the Board reviews the actions taken on internal control issues identified by the Internal & External
Auditors and Regulatory Authorities. It has active oversight on the internal audit’s independence, scope of work and resources and it
also reviews the functions of Compliance Division of Head Office, particularly the scope of the annual audit plan and frequency of the
internal audit activities.

Internal Audit

Internal Audit is the continuous and systematic process of examining and reporting on the activities of an organization undertaken
by the specially assigned staff(s). Internal Auditor works as the Eyes & Ears of the management. It may therefore be used to bridge the
gap between management & shop floor. It can assure the management that the Internal Controls are adequate and in operations, the
policies and systems laid down are being adhered to and accounting records provided by the lower level are correct.

Internal Audit Mechanism is used as an important element to ensure good governance of RBL. Internal Audit Activity of RBL is effective
and it provides senior management with a number of important services. These include detecting and preventing fraud, testing
internal control, and monitoring compliance with own policies & procedures, applicable rules & regulations, instructions/ guidelines of
regulatory authority etc.

During the year 2019, internal audit conducted inspection on many of the Branches/ Divisions of Head Office of the Bank and submitted
reports presenting the findings of the audits/ inspections. Necessary control measures and corrective actions have been taken on the
suggestions or observations made in these reports. The reports or key points of the Reports have also been discussed in the meetings
of the Audit Committee of the Board and necessary steps have been taken according to the decision of the said Committee for correct
functioning of Internal Controls & Compliance.

Fraud and Forgeries

The increasing wave of fraud and forgery cases in the banking sector in recent time calls for concerted steps in identifying ways for
reducing or preventing frauds and forgeries by analyzing the causes and effect of frauds and forgeries, and prescribing effective control
strategies for salvaging frauds in the banking sector. Rupali Bank does always pay due attention on anti-fraud internal controls for
prevention of fraud and forgery. The Bank has already implemented some strategies like Financial Control Strategy, Personnel Control
Strategy, Accounting Control Strategy, Credit Control Strategy, Cost Control Strategy, Administrative Control strategy, Process Control
Strategy etc. in order to strengthening the control system further. Although it is not possible to eliminate all frauds because of the
inherent limitations of Internal Control System, the Board of Directors and Management have taken all the measures to keep the
operational risk in a very minimum level. internal audit assesses and evaluates the effectiveness of Bank’s anti-fraud internal control
measures, recommends for further improvement in implementation of aforesaid strategies and reports to the Bangladesh Bank on
effectiveness of controls at the end of each quarter following their prescribed format.

2.25 The financial statements were approved by the Board of Directors on 28 June 2020.

2.26 Shareholders’ Equity:

Amount in crore
Particulars 2019 2018
Paid up capital 414.16 376.51
Share Money Deposit 680.00 680.00
Statutory reserve 347.02 325.16
Assets Revaluation reserve 63.19 63.19
Revaluation reserve gain / (loss) on investments 146.29 221.81
Foreign currency translation gain 0.00 0.00
Surplus in profit and loss account / Retained earnings 56.00 54.97
1,703.95 1,721.64

268
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

2.27 Earning Per Share (EPS) has been calculated in accordance with IAS-33: “Earnings Per Share (EPS)”. Previous year/period figures
have been adjusted for the issue of Bonus Shares during the year.

Amount in Taka
Calculation of EPS: 2019 2018
Profit after tax for the year (Solo) 546,377,533 379,210,745
Profit after tax for the year (Consolidated) 569,581,369 409,344,631
Weighted average number of share 414,168,632 376,516,939
Earnings per share (Solo) 1.32 0.92
Earnings per share (Consolidated) 1.38 0.99

Government of Peoples Republic of Bangladesh, FRC, Finance Division, Finance Ministry , published circular # 146/FRC/SS/2020/251
dated 11.02.2020 as per section # 8(2)(GHA) of Financial Reporting Act (FRA) 2015 related to Share Money Deposit. According to this
circular instruction g~jab iƒcvšÍ‡ii c~e© ch©šÍ D³ Znwej m¤¢e¨ †kqvi (Potential Share) wnmv‡e we‡ewPZ n‡e Ges †mB †gvZv‡eK BwcwGm (EPS) MYbvq
AšÍ©f~³ Kwi‡Z n‡e| So, EPS Calculation given below as follows:

Calculation of EPS: 2019 2018

Profit after tax for the year (Solo) 546,377,533 379,210,745
Profit after tax for the year (Consolidated) 569,581,369 409,344,631
Weighted average number of share 1,094,164,012 1,056,512,319
Earnings per share (Solo) 0.50 0.36
Earnings per share (Consolidated) 0.52 0.39

Amount in Taka
2.28 Calculation of Net Asset value per Share (NAVPS) 2019 2018
Shareholders' Equity (Solo) 16,876,011,785 17,076,942,902
Shareholders' Equity (Consolidated) 17,039,478,891 17,216,398,852
Weighted average number of share 414,168,632 376,516,939
Net Asset value per Share (NAVPS) (Solo) 40.75 41.23
Net Asset value per Share (NAVPS) (Consolidated) 41.14 41.57

Amount in Taka
2.29 Calculation of Net Cash Flow Per Share (NOCFPS) 2019 2018
Net Cash from Operating Activities (Solo) (31,255,088,110) 31,503,988,808
Net Cash from Operating Activities (Consolidated) (31,188,620,187) 31,424,765,055
Weighted average number of share 414,168,632 376,516,939
Net operating cash flow per share (Solo) (75.46) 76.07
Net operating cash flow per share (Consolidated) (75.30) 75.87

Annual Report 2019 269

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
2.30 Cash Flows from Operating Activities (Consolidated) 2019 2018
Interest Receipts in Cash 26,720,195,778 24,339,607,376
Interest Payments (17,657,482,035) (16,982,393,111)
Dividend Receipts 188,788,404 356,457,213
Fees, Commissions, Brokerage etc. 1,010,440,163 778,289,897
Recoveries of Loans Previously Written off 55,100,000 281,400,000
Cash Payments to Employees (4,829,141,844) (4,706,583,274)
Cash Payments to Suppliers (740,057,878) (676,487,696)
Income Taxes Paid (113,123,697) (205,837,561)
Receipts from Other Operating Activities 1,419,289,001 1,691,516,073
Payments for Other Operating Activities (3,686,330,250) (3,040,839,705)
Cash Generated from Operating Activities before changes in
2,367,677,643 1,835,129,213
Operating Assets and Liabilities
Increase / (Decrease) in Operating Assets and Liabilities :
Loans and Advances to Customers (59,262,332,789) (40,817,937,599)
Other Assets 316,519,496 (4,044,803,788)
Deposits from Customers 25,074,770,769 69,830,689,701
Other Liabilities 314,744,695 4,621,687,529
(33,556,297,830) 29,589,635,842
Net Cash Flows from Operating Activities (31,188,620,187) 31,424,765,055

2.31 General

These financial statements are presented in Taka, which is the Bank’s functional currency. Figures appearing in these financial statements
have been rounded off to the nearest Taka.

The expenses, irrespective of capital or revenue nature, accrued / due but not paid have been provided for in the books of the Bank.

Figures of previous year have been rearranged whenever necessary to conform to current year’s presentation.

270
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
3.00 Cash
Cash in hand (including foreign currencies) 3.01 3,171,643,770 2,327,606,688
Balance with Bangladesh Bank and it's agent banks (including foreign currencies) 3.02 21,225,848,836 21,218,964,074
24,397,492,606 23,546,570,762
3.01 Cash in hand
Local currency 3,168,669,404 2,314,063,438
Foreign currency 2,974,366 13,543,250
3,171,643,770 2,327,606,688
3.02 Balance with Bangladesh Bank and it's agent banks
Balance with Bangladesh Bank
Local currency 19,748,827,515 19,344,554,461
Foreign currency 3.02.01 167,276,497 1,125,943,747
19,916,104,012 20,470,498,208
Balance with Sonali Bank as agent of Bangladesh Bank 1,309,744,824 748,465,866
21,225,848,836 21,218,964,074

24,397,492,606 23,546,570,762

3.02.01 Balance with Bangladesh Bank (Foreign currencies)

USD 166,515,605 1,125,327,973
Pound 585,160 537,307
EURO 175,732 78,468
167,276,497 1,125,943,747
3(a) Consolidated Cash in Hand
Cash in hand
Rupali Bank Limited (Note - 3.01) 3,171,643,770 2,327,606,688
Rupali Investment Limited 25,000 25,000
Rupali Bank Securities Limited 16,605 706
3,171,685,375 2,327,632,394
Balance with Bangladesh Bank and its agent banks (including foreign currencies)
Rupali Bank Limited (Note - 3.02) 21,225,848,836 21,218,964,074
Rupali Investment Limited 68,520,986 202,404,892
Rupali Bank Securities Limited (Local Office RBL) 73,311,427 74,243,670
21,367,681,249 21,495,612,636
24,539,366,624 23,823,245,030

3.03 Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR)
Cash Reserve Requirement and Statutory Liquidity Ratio have been calculated and maintained in accordance with section 33 of
Bank Companies Act, 1991 and MPD circular nos.01 & 02, dated June 23, 2014 and December 10, 2013 & DOS circular no.1 dated 19
January 2014 and MPD Circular no.01 dated April 03, 2018.
The Cash Reserve Requirement on the Bank's time and demand liabilities at the rate of 5.5% has been calculated and maintained
with Bangladesh Bank and 13% Statutory Liquidity Ratio for conventional banking and 5.50% Statutory Liquidity Ratio for Islamic
banking , excluding CRR, on the same liabilities has also been maintained in the form of treasury bills, bonds and debentures
including FC balance with Bangladesh Bank. Both the reserves maintained by the Bank are in excess of the statutory requirements,
as shown below:

Annual Report 2019 271

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
a) Cash Reserve Requirement (CRR)
Average demand and time liabilities 406,312,012,000 348,591,198,000

Required reserve 5.00% of demand and time liabilities 20,315,600,600 17,429,559,900

Actual reserve held with Bangladesh Bank (bi-weekly basis)* 22,779,443,760 20,432,107,120
Surplus/(shortfall) 2,463,843,160 3,002,547,220

*(As per Bangladesh Bank statement (Motijheel Branch), actual balance as of 31 December, 2019 was Tk. 20,93,86,13,419.58 which is
more than minimum requirement of 5.50% on daily basis.)

b) Statutory Liquidity Ratio (SLR)

Average demand and time liabilities 406,312,012,000 348,591,198,000

Required reserve (13%) 52,820,561,560 45,316,855,740
Actual reserve held 3.04 71,710,804,769 52,218,053,704
Surplus/(shortfall) 18,890,243,209 6,901,197,964

Total required reserve 73,136,162,160 62,746,415,640

Actual reserve held 94,490,248,529 72,650,160,824
Total surplus 21,354,086,369 9,903,745,184
3.04 Held for Statutory Liquidity Ratio
Cash in hand 3.01 3,168,669,404 2,314,063,438
Excess of CRR 3,888,320,000 3,888,320,000
Balance with agent of Bangladesh Bank (Sonali Bank Ltd.) 3.02 1,309,744,824 748,465,866
Unencumbered approved securities (HFT) 6.01.03 13,404,592,440 21,142,077,600
Unencumbered approved securities (HTM) 6.01.03 49,939,478,100 24,125,126,800
71,710,804,769 52,218,053,704

4.00 Balance with other banks and financial institutions

In Bangladesh 4.01 20,860,500,000 64,000,012,500
Outside Bangladesh 4.02 2,636,913,944 1,331,282,042
23,497,413,944 65,331,294,542
4.01 In Bangladesh
Current accounts - -
Short-term deposit accounts - -
Savings accounts - -
Fixed deposits 4.01.01 20,860,500,000 64,000,012,500
20,860,500,000 64,000,012,500
4.01.01 Fixed deposit accounts
With Banks (Local Currency)
Basic Bank Ltd. 1,000,000,000 2,000,000,000
RAKUB 1,000,000,000 1,000,000,000
The Padma Bank Ltd. 1,000,000,000 1,500,000,000
Midland Bank 1,000,000,000 1,500,000,000
NRB Global Bank Ltd. 1,400,000,000 2,000,000,000
N R B Commercial Bank Ltd. - 1,950,000,000
Ansar VDP Unnayan Bank - 400,000,000
National Bank Ltd. 100,000,000 2,000,000,000

272
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
Union Bank - 2,250,000,000
Meghna Bank Ltd. - 1,000,000,000
AB Bank Ltd. 500,000,000 1,000,000,000
BCBL - 100,000,000
Exim Bank Ltd. - 1,000,000,000
NRB Bank Ltd. - 1,900,000,000
First Security Islami Bank - 2,000,000,000
The City Bank - 4,000,000,000
Jamuna Bank Ltd. - 2,500,000,000
Mercantile Bank Ltd. - 3,000,000,000
MTBL Ltd. - 2,000,000,000
NCC Bank Ltd. - 1,000,000,000
Estran Bank Ltd. - 4,000,000,000
Premier Bank Ltd. - 3,000,000,000
SBACBL Ltd. 1,000,000,000 1,600,000,000
Social Islami Bank Ltd - 500,000,000
ICB Islamic Bank Ltd. (Oriental Bank Ltd.) 198,900,000 198,900,000
7,198,900,000 43,398,900,000
With Banks (Foreign Currency)
Midland Bank - 167,150,000
EBL - 2,340,100,000
Marcentile Bank - 1,337,200,000
AB Bank Ltd. - 919,325,000
The Premier Bank Ltd. - 1,587,925,000
Modhumoti Bank Ltd. - 1,044,687,500
The City Bank Ltd. - 83,575,000
NCC Bank Ltd. - 167,150,000
- 7,647,112,500
With Non Banking Financial Institutions
Peoples Leasing & Finance Services 1,200,000,000 1,200,000,000
FAS Finance and Investment Ltd. 1,031,600,000 1,037,000,000
Union Capital Ltd. 200,000,000 300,000,000
International Leasing & Finance 1,067,000,000 1,067,000,000
BD Finance 413,000,000 500,000,000
First Lease Finance Limited 450,000,000 450,000,000
Phoenix Finance & Investment Ltd. 200,000,000 200,000,000
Hajj Finance company Ltd. - 100,000,000
Fareast Finance 400,000,000 400,000,000
Premier Leasing 550,000,000 550,000,000
Investment Corp. (ICB) 4,500,000,000 4,500,000,000
Reliance Finance Ltd. 3,150,000,000 2,150,000,000
BFIC 500,000,000 500,000,000
13,661,600,000 12,954,000,000
20,860,500,000 64,000,012,500

Annual Report 2019 273

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
4.02 Outside Bangladesh
WES:
USD 641,610 641,610
Pound 157,913,571 28,956,496
158,555,181 29,598,106
Regular:
Pound - -
USD 2,170,670,312 985,927,110
ACU 212,048,801 208,674,791
EURO 1,577,193 61,346,814
JPY 57,713,419 20,554,607
SR 2,856,960 2,476,811
DKK 1,518,411 8,772,787
AUD 29,600,422 6,894,425
SGD - 4,258,987
CHF 1,767,677 2,202,806
ACUEURO 605,568 574,798
2,478,358,763 1,301,683,936
2,636,913,944 1,331,282,042

For details of foreign currency's amounts and rates thereof please see 'Schedule -A

4.03 Maturity grouping of Balance with other banks and financial institutions

Payable on demand 4,169,482,474 6,765,900,000

Up to 1 month 16,677,929,897 25,037,046,022
Over 1 month but not more than 3 months 2,100,001,246 19,050,027,568
Over 3 months but not more than 6 months 187,000,111 8,819,724,763
Over 6 months but not more than 1 year 363,000,216 5,459,696,189
Over 1 year but not more than 5 years - 198,900,000
More than 5 years - -
23,497,413,944 65,331,294,542

4(a) Consolidated Balance with other banks and financial institutions

In Bangladesh
Rupali Bank Limited (Note - 4.01) 20,860,500,000 64,000,012,500
Rupali Investment Limited - -
Rupali Bank Securities Limited - -
20,860,500,000 64,000,012,500
Outside Bangladesh
Rupali Bank Limited (Note - 4.02) 2,636,913,944 1,331,282,042
Rupali Investment Limited - -
Rupali Bank Securities Limited - -
2,636,913,944 1,331,282,042
23,497,413,944 65,331,294,542
5.00 Money at call and short notice
In Bangladesh 5.01 - 5,240,000,000
Outside Bangladesh 5.02 - -
- 5,240,000,000

274
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
5.01 In Bangladesh
Local Currency 5.01.01 - 5,240,000,000
Foreign Currency 5.01.02 - -
- 5,240,000,000
5.01.01 In Bangladesh (Local Currency)
With Bank
Midland Bank Ltd. - 650,000,000
Basic Bank Ltd. - 500,000,000
The City Bank - 2,100,000,000
Uttara Bank Ltd. - 550,000,000
One Bank Ltd. - 350,000,000
National Bank Ltd. - 490,000,000
Modhumoti Bank Ltd. - 250,000,000
Dhaka Bank Ltd. - 350,000,000
- 5,240,000,000
With Non-Bank financial institutions - -
- 5,240,000,000
5.01.02 Foreign Currency - -

5.02 Outside Bangladesh - -

5(a) Consolidated Money at call and short notice

Rupali Bank Limited 5.00 - 5,240,000,000

Rupali Investment Limited - -
Rupali Bank Securities Limited - -
- 5,240,000,000
6.00 Investment

Government securities 6.01 63,352,839,496 45,277,669,300

Other investment 6.02 40,293,327,544 37,058,785,984
103,646,167,040 82,336,455,284
6.01 Government (Investment in government securities)

Treasury bill 6.01.01 8,223,633,300 13,854,535,700

Treasury Bonds 6.01.02 55,120,437,240 31,412,668,700
Bangladesh Bank Bill - -
Prize bonds 8,768,956 10,464,900
63,352,839,496 45,277,669,300
6.01.01 Treasury bill
91 Days Treasury Bill - 3,974,310,800
182 Days Treasury Bill - 2,467,385,000
364 Days Treasury Bill 8,223,633,300 7,412,839,900
8,223,633,300 13,854,535,700

Annual Report 2019 275

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
6.01.02 Treasury bond
2 years Treasury Bonds 15,846,878,700 5,164,740,200
5 years Treasury Bonds 16,663,837,900 6,390,682,500
7 years Special Treasury Bond 4,871,700,000 -
10 Years Bond-BTMC/BGMC 2,040,000,000 2,040,000,000
10 years Treasury Bond 5,574,759,400 7,292,843,240
15 years Treasury Bond 4,814,143,280 5,101,945,610
20 years Treasury Bond 5,309,117,960 5,414,719,650
25 years Treasury Bond - 7,737,500
55,120,437,240 31,412,668,700
*Investment in Government securities classified as per Bangladesh Bank circular No. DOS-05,dated 26.05.2008.
6.01.03 Held to maturity (HTM)
Treasury bill
- -
Held for trading (HFT)
Treasury bill

91 Days Treasury Bill - 3,974,310,800

182 Days Treasury Bill - 2,467,385,000
364 Days Treasury Bill 8,223,633,300 7,412,839,900
8,223,633,300 13,854,535,700
Bangladesh Bank Bill - -
8,223,633,300 13,854,535,700
Details in Schedule- 'B-2'

Held to maturity (HTM)

Bonds
2 years Treasury Bond 15,846,878,700 5,164,740,200
5 years Treasury Bond 16,663,837,900 6,390,682,500
10 years Treasury Bond 3,230,775,500 3,234,248,800
15 years Treasury Bond 2,839,466,600 2,839,077,700
20 years Treasury Bond 4,446,819,400 4,448,640,100
25 years Treasury Bond - 7,737,500
43,027,778,100 22,085,126,800

7 years Special Treasury Bond 4,871,700,000 -

10 Years Private Bond-BTMC/BGMC 2,040,000,000 2,040,000,000
6,911,700,000 2,040,000,000
Details in Schedule- 'B' 49,939,478,100 24,125,126,800

Held for trading (HFT)

10 years Treasury Bond 2,343,983,900 4,058,594,440
15 year Treasury Bond 1,974,676,680 2,262,867,910
20 year Treasury Bond 862,298,560 966,079,550
5,180,959,140 7,287,541,900
Details in Schedule- 'B-1' 55,120,437,240 31,412,668,700

276
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
6.02 Others

Ordinary shares 6.02.01 3,482,852,154 3,445,352,154

Preference shares 6.02.02 4,987,800,000 5,500,000,000
Debenture 6.02.03 2,675,390 13,433,830
Subordinated Bond 6.02.04 26,760,000,000 25,840,000,000
Mutual Fund 6.02.05 1,460,000,000 1,460,000,000
Commercial Paper 6.02.06 350,000,000 800,000,000
Corporate Bond 6.02.07 3,250,000,000 -
40,293,327,544 37,058,785,984
6.02.01 Ordinary Shares
Quoted 1,676,810,514 1,676,810,514
Unquoted 1,806,041,640 1,768,541,640
3,482,852,154 3,445,352,154

Share cost price and market price

Cost price
Quoted 1,676,810,514 1,676,810,514
Unquoted 6,793,841,640 7,268,541,640
8,470,652,154 8,945,352,154
Market price
Quoted 2,543,030,738 3,441,870,233
Unquoted 6,793,841,640 7,268,541,640
9,336,872,378 10,710,411,873
Details are in Schedule- 'B-3'
6.02.02 Preference shares
OIL redeemable preference share 1,482,800,000 5,000,000,000
OIL convertible preference share 500,000,000 500,000,000
Disaster Recovery Site 5,000,000 -
Best Holdings Ltd. 3,000,000,000 -
4,987,800,000 5,500,000,000
Schedule - 'B-3.01'

6.02.03 Debentures
Approved 2,583,200 2,583,200
Un-approved 92,190 10,850,630
2,675,390 13,433,830
Details in Schedule- 'B-4'

6.02.04 Subordinated Bond

United Commercial Bank Ltd. (01) 200,000,000 350,000,000

One Bank Ltd. 100,000,000 200,000,000
Southeast Bank Ltd. 400,000,000 600,000,000
Prime Bank Limited 200,000,000 480,000,000
Bank Asia Limited 360,000,000 480,000,000
Eastern Bank Limited 360,000,000 480,000,000
EXIM Bank Limited 360,000,000 800,000,000

Annual Report 2019 277

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
Social Islami Bank Limited 600,000,000 300,000,000
Jamuna Bank Ltd 300,000,000 400,000,000
United Commercial Bank Ltd. (02) 300,000,000 400,000,000
Al Arafah Islami Bank Ltd. 600,000,000 800,000,000
AB Bank Ltd. 600,000,000 800,000,000
Standard Bank Limited 200,000,000 300,000,000
Dhaka Bank Ltd. 2nd sub. Debt 800,000,000 1,000,000,000
IFIC Bank Ltd. 800,000,000 1,000,000,000
Trust Bank Ltd. III 720,000,000 900,000,000
One Bank Ltd. Bond-II 160,000,000 200,000,000
Southeast Bank Ltd. Bond-II 200,000,000 250,000,000
Mutual Trust Bank Ltd.( Sub-Ordinated Bond-III) 200,000,000 200,000,000
Shahjalal Islami Bank 700,000,000 700,000,000
Dutch Bangla Bank Ltd 1,000,000,000 1,000,000,000
Social Islami Bank Limited 400,000,000 500,000,000
The City Bank Sub Bond -II 800,000,000 800,000,000
First Security Islami Bank Subordinated Bond-II 1,000,000,000 1,000,000,000
Pubali Bank Subordinated Bond 1,000,000,000 1,000,000,000
National Bank Subordinated Bond-II 900,000,000 900,000,000
UCBL Sub ordinated Bond-III 250,000,000 250,000,000
NCC Bank Ltd. Subordinated Bond 1,000,000,000 1,000,000,000
Prime Bank Limited Sub ordinated Bond-III 1,500,000,000 1,500,000,000
Dhaka Bank Limited Sub ordinated Bond-III 1,000,000,000 1,000,000,000
Southeast Bank Limited Sub ordinated Bond-III 750,000,000 750,000,000
Farmers Bank Limited Sub ordinated Bond 500,000,000 500,000,000
Trust Bank Limited Sub ordinated Bond-IIII 750,000,000 750,000,000
Shahajalal Bank Limited Sub ordinated Bond-II 750,000,000 750,000,000
Islami Bank Bangladesh Limited Sub ordinated Bond 1,000,000,000 1,000,000,000
Dutch Bangla Bank Limited Sub ordinated Bond-II 750,000,000 750,000,000
Premir Bank Limited Sub ordinated Bond 1,000,000,000 1,000,000,000
Al-arafa Islami Bank Limited Sub ordinated Bond-II 750,000,000 750,000,000
ICB 1,500,000,000 -
FSIBL III 1,000,000,000 -
Union Bank 500,000,000 -
Exim Bank-II 500,000,000 -
Details in Schedule- 'B-5' 26,760,000,000 25,840,000,000

278
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

2019
6.02.04.01 Credit Rating Status of Bond Issuer
Long Term Short Term
United Commercial Bank Ltd. (01) AA 2
One Bank Ltd. AA 2
Southeast Bank Ltd. AA 2
Prime Bank Limited AA2 2
Bank Asia Limited AA 2
Eastern Bank Limited AA 2
EXIM Bank Limited A+ 2
Social Islami Bank Limited AA- 2
Jamuna Bank Ltd AA3 2
United Commercial Bank Ltd. (02) AA 2
Al Arafah Islami Bank Ltd. AA 2
AB Bank Ltd. AA3 2
Standard Bank Limited AA 2
Dhaka Bank Ltd. 2nd sub. Debt AA 2
IFIC Bank Ltd. AA2 2
Trust Bank Ltd. III AA2 2
One Bank Ltd. Bond-II AA 2
Southeast Bank Ltd. Bond-II AA 2
Mutual Trust Bank Ltd.( Sub-Ordinated Bond-III) AA 2
Shahjalal Islami Bank AA2 2
Dutch Bangla Bank Ltd AA+ 1
Social Islami Bank Limited AA- 2
The City Bank Sub Bond -II AA2 2
First Security Islami Bank Subordinated Bond-II A+ 2
Pubali Bank Subordinated Bond AA 1
National Bank Subordinated Bond-II AA 2
UCBL Sub ordinated Bond-III AA 2
NCC Bank Ltd. Subordinated Bond AA 1
Prime Bank Limited Sub ordinated Bond-III AA2 2
Dhaka Bank Limited Sub ordinated Bond-III AA 2
Southeast Bank Limited Sub ordinated Bond-III AA 2
Farmers Bank Limited Sub ordinated Bond A- 3
Trust Bank Limited Sub ordinated Bond-IIII AA2 2
Shahajalal Bank Limited Sub ordinated Bond-II AA2 2
Islami Bank Bangladesh Limited Sub ordinated Bond AAA 1
Dutch Bangla Bank Limited Sub ordinated Bond-II AA+ 1
Premir Bank Limited Sub ordinated Bond AA+ 1
Al-arafa Islami Bank Limited Sub ordinated Bond-II AA 2
ICB AAA 1
FSIBL III A/D 2
Union Bank A+ 2
Exim Bank-II A 2

Annual Report 2019 279

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
6.02.05 Mutual Fund
Investment in Bangladesh Fund 1,060,000,000 1,060,000,000
Vanguard AML Rupali Bank Balanced fund 400,000,000 400,000,000
1,460,000,000 1,460,000,000
Details in Schedule- ‘B-6’
As per instruction of regulatory authorities (Bangladesh Bank and BSEC) board of directors of Rupali Bank Limited invested TK.100
crore according to the decision of the board meeting No. 852 dated 22 March 2011 and invested Tk. 6.00 Crore as per board meeting
No.910 dated 15 May 2013.
6.02.06 Commercial Paper

Rangpur Metal Industries Ltd. - 200,000,000

Energypac Engineering Ltd. 300,000,000 300,000,000
BSRM Steels Ltd. - 300,000,000
Hashem Foods Ltd 50,000,000 -
350,000,000 800,000,000

6.02.07 Corporate Bond

Ashugonj Power 750,000,000 -

Beximco comm.Ltd 2,500,000,000 -
3,250,000,000 -

Details in Schedule- 'B-6'

6.02.07 Required Provision for Investment

Debentures 40,294,870 40,228,700
Share investment (Quoted Share) 695,730,686 260,746,988
Total Required Provision for Classified Investment 736,025,556 300,975,688

Provision Maintained for Debentures Investment 40,294,870 40,294,870

Provision Maintained for Share investment 263,176,610 263,176,610
Total Provision Maintained for Investment 303,471,480 303,471,480

Total Provision surplus / (shortfall) (432,554,076) 2,495,792

Shortfall of Provision Exempted by Bangladesh Bank as per letter no. wWweAvB-
432,554,076 -
2(Dwe-4)/2419/2020-855 Dated 24 June 2020.
Provision excess / (shortfall) - 2,495,792
* Investment in quoted share has been valued at the fair value as on the reporting date. As per Bangladesh Bank’s DOS circular No.
04, Dated 24 November, 2011 provision value of shares will be made on the difference of average cost and market price. Details given
in Schedule - ‘B-3’
6.08 Maturity grouping of investments
Payable on demand 8,768,956 10,464,900
Below 3 months 2,552,832,701 6,003,040,734
Over 3 months but below 1 year 13,364,108,644 11,719,607,864
Over 1 Year but below 5 years 50,588,432,721 26,389,023,812
Over 5 Years 37,132,024,018 38,214,317,974
103,646,167,040 82,336,455,284

280
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
6(a) Consolidated Investments
Government
Rupali Bank Limited 6.01 63,352,839,496 45,277,669,300
Rupali Investment Limited - -
Rupali Bank Securities Limited - -
63,352,839,496 45,277,669,300
Others
Rupali Bank Limited 6.02 40,293,327,544 37,058,785,984
Rupali Investment Limited 1,051,803,207 879,023,361
Rupali Bank Securities Limited ** 566,882,857 532,031,355
41,912,013,608 38,469,840,700
105,264,853,104 83,747,510,000
**Loans & Advance of Rupali Bank Securities Limited was included in Investment in 2018 amounting Tk-25,84,44,715 now transfar
to Loans & Advance (7a).

7.00 Loans and advances

Loans, cash credits and overdrafts etc. 7.01 305,255,059,510 246,609,058,179
Bills purchased and discounted 7.02 1,468,980,439 881,548,981
306,724,039,949 247,490,607,160

7.01 Loans, cash credit, overdrafts, etc.

In Bangladesh
Loan- general 137,664,285,479 117,079,584,511
Cash credit 74,438,284,037 62,221,002,376
Overdrafts 23,199,147,703 11,288,167,850
Other loans 7.01.01 69,953,342,291 56,020,303,442
305,255,059,510 246,609,058,179
Outside Bangladesh: - -
305,255,059,510 246,609,058,179

7.01.01 Other loans

Loan payment against documents (PAD) 713,435,005 265,879,190

Loan against imported merchandise (LIM) 1,264,679,138 1,139,805,249
Packing credit 460,749,092 499,001,282
Loans against trust receipt (LTR) 3,310,807,459 1,881,537,402
SME Loan 27,963,721,880 20,916,433,050
Staff Loan 7.01.01.a 20,972,652,247 16,914,397,547
Rural credit 6,361,992,730 6,652,107,944
Bridge finance 8,234,275 8,284,275
Government Employee Loans 425,176,909 -
Forced loan 8,471,893,553 7,742,857,503
69,953,342,291 56,020,303,442

7.01.01.a Staff Loan

Staff House Building Loan 20,475,860,591 16,441,743,376

Executive Car Loan 448,310,621 467,705,509
Staff Motorcycle Loan 45,973,051 204,374
Provident Fund Loan (PF) 2,404,611 2,343,071
Staff Bicycle Loan 103,373 2,401,216
20,972,652,247 16,914,397,547

Annual Report 2019 281

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
7.02 Bills purchased and discounted

Payable in Bangladesh
Inland bill purchased and discounted 513,270,451 395,148,795

Payable outside Bangladesh

Foreign bill purchased and discounted 955,709,988 486,400,186
1,468,980,439 881,548,981

7.02.01 Maturity grouping of bills purchased and discounted

Repayable within 1 month 146,898,044 88,154,898

Over 1 month but less than 3 months 293,796,088 176,309,796
Over 3 months but less than 6 months 323,175,697 193,940,776
6 months or more 705,110,611 423,143,511
1,468,980,439 881,548,981

7.03 Maturity grouping of loans and advances including bill purchased and discounted

Repayable on demand 6,134,480,799 4,949,812,143

Not more than 3 months 108,289,636,898 79,976,819,296
More than 3 months but not more than 1 year 91,635,499,956 65,919,635,896
More than 1year but not more than 5 years 53,696,943,433 49,861,120,551
More than 5 years 46,967,478,863 46,783,219,274
306,724,039,949 247,490,607,160
306,724,039,949 247,490,607,160

7.04 Disclosure for significant concentration

Advance to allied concerns of Directors - -

Advance to Managing Directors - -
Advance to Other Executives 20,972,652,247 16,914,397,547
Advance to Customers' Group 285,751,387,702 215,696,079,613
Industrial Credits - 14,880,130,000
306,724,039,949 247,490,607,160
7.05 Loans and advances on the basis of significant customer concentration
including bills purchased and discounted
Advance to allied concerns of directors - -
Advance to Managing Director and others senior executives - -
Advance to customer group (amounting more than 10% of banks total capital .) 7.05.01 90,706,600,000 88,484,413,558
Other customer group 195,044,787,702 142,091,796,055
Advances to staff 20,972,652,247 16,914,397,547
306,724,039,949 247,490,607,160

282
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
7.05.01 Details of large loan (loans and advances allowed to each customer
exceed 10% or more of bank's capital )
Number of client 20 20
Amount of outstanding advances 90,706,600,000 88,484,413,558

Measures taken for recovery of classified loan

Bank as a whole takes following steps to recover its classified loans and advances.
ì) Sending letters and reminder to customers ;
ii) Special assets management department holds discussion with the clients
to recover the loans;
iii) Disposal of security through auction;
iv) Appointing recovery specialist;
v) Legal proceedings and settlement.

Outstanding Outstanding
Name of the large loan borrower Status
Balance Balance
Mother Textile Mills Ltd. UC 11,868,000,000 11,633,200,000
Beximco Ltd. (Group) UC 8,852,000,000 8,953,300,000
Bangladesh Sugar & Food Industries Corporation BSFIC UC 7,928,200,000 7,272,913,558
Nurjahan Group BL 6,296,500,000 6,296,500,000
Madaripur Spinning Mills Ltd. UC 6,107,200,000 6,175,000,000
Bador Spinning Mills Ltd. UC 4,134,500,000 4,969,800,000
Orion Group UC 4,641,000,000 4,633,000,000
Dolly Constraction Ltd. UC 4,751,700,000 4,012,800,000
The Crescent Jute Mills UC 3,907,600,000 3,615,500,000
Abonti Colour Tex Ltd. UC 3,705,700,000 3,598,700,000
Uttara Pat Sangstha UC 3,773,700,000 3,524,300,000
Jute Textile Mills Ltd. UC 5,034,700,000 3,486,000,000
Sattar Group UC 2,857,400,000 3,262,300,000
PRAN-RFL-Group UC 2,276,900,000 3,215,600,000
Noman Group UC 3,057,200,000 3,095,400,000
Green Planet Resort UC 2,694,800,000 2,897,700,000
S. Virgo Media Ltd BL 2,423,800,000 2,418,100,000
M/S Mondol & Co. UC 2,535,800,000 -
Dhaka Trading House UC 3,005,200,000 -
Benetex Ltd BL - 2,094,400,000
Ibrahim Consortium Ltd. BL - 1,924,300,000
S. Alam Group Ltd. UC 854,700,000 1,405,600,000
90,706,600,000 88,484,413,558

Annual Report 2019 283

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
7.05.02 Top-20 Defaulters according to Outstanding amount ()

Nurjahan Group BL 6,296,500,000 6,296,500,000

M/S Vergo Media Ltd BL 2,423,800,000 -
Benetex Industries Ltd. BL - 2,094,400,000
Ibrahim Consortium Ltd. BL 1,924,300,000 1,924,300,000
A.H.Z.Agro Industries (Pvt.) Ltd. BL 1,681,000,000 1,681,000,000
Himalaya Paper & Board Mills Ltd. BL 1,659,000,000 1,659,000,000
M/S Shafique Steel BL 1,526,900,000 -
S.A. Group BL 1,512,300,000 1,512,300,000
Crystal Steel & Ship Breaking. BL 1,473,900,000 1,050,300,000
Price Club General Trading Co. Ltd. BL 926,200,000 926,100,000
MB Spinning Mills. Ltd. BL 883,100,000 882,100,000
M/S Manz-Fi-Paper Mills. Ltd. BL 752,600,000 -
Desh Jewellers BL 716,300,000 716,300,000
M/S Dream Knittig BD Ltd. BL 713,500,000 -
Z & J International BL 665,300,000 665,300,000
Knit Valley Ltd. BL 606,500,000 613,200,000
M/S Knit Valley Ltd. BL 600,200,000
DSL Sweater Ltd. BL 592,300,000 592,300,000
Shital Enterprise. BL 578,400,000 578,400,000
N.D. Printing Embroidary Ltd. BL 469,600,000 469,600,000
Bioanic Sea Food Export Ltd. BL - 491,700,000
Mabia Ship Breakers. BL 1,519,400,000 1,159,100,000
Bagdad Trading Co. BL - 456,900,000
Syedia Rice Mill Ltd. BL - 429,000,000
Johura Noor Steel Industry Ltd. BL - 417,700,000
27,521,100,000 24,615,500,000

7.06 Sector wise Loans

Agriculture 10,238,700,000 9,625,700,000

Industry 7.06.a 186,463,100,000 149,106,200,000
Trade & Commerce 63,954,400,000 51,459,400,000
Construction 5,946,600,000 5,181,300,000
Transport 3,005,400,000 2,533,900,000
Consumer finance 10,706,600,000 9,837,600,000
Miscellaneous 26,409,239,949 19,746,507,160
306,724,039,949 247,490,607,160
7.06.a Industry wise Loans
RMG 22,652,300,000 19,730,500,000
Textile 76,959,900,000 67,046,200,000
Food & allied Industries 5,383,900,000 3,618,700,000
Pharmaceutical Industries 5,854,100,000 4,845,500,000
Chemical Fertilizer etc. 12,083,600,000 9,093,600,000
Cement & Ceramic Industry 2,954,400,000 2,563,600,000
Ship Building 1,217,800,000 1,217,800,000
Ship Bbreaking 4,595,100,000 4,111,100,000
Power, Gas 3,087,400,000 2,834,600,000
Other Manufacturing Industry 26,273,300,000 15,369,300,000
Service 10,657,200,000 10,563,000,000
Others 14,744,100,000 8,112,300,000
186,463,100,000 149,106,200,000

284
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
7.07 Geographical location-wise loans and advances including bill purchased and discounted

In Bangladesh

Divisions Name
Urban
Local Office 123,837,238,919 101,352,707,762
Dhaka North 30,290,160,685 25,149,854,553
Dhaka South 37,646,145,488 27,537,481,324
Chittagong 28,373,202,998 21,126,921,680
Khulna 33,377,746,281 29,198,759,785
Barisal 5,514,413,501 5,137,952,253
Comilla 2,741,397,068 2,425,255,118
Rajshahi 5,384,719,021 3,669,625,204
Rangpur 8,468,453,025 7,076,336,586
Mymensingh 4,269,303,361 4,451,091,518
Sylhet 1,741,897,036 1,607,440,076
281,644,677,382 228,733,425,859

Rural
Dhaka North 3,497,399,453 2,248,796,598
Dhaka South 204,775,401 235,612,762
Chittagong 642,518,045 583,799,164
Khulna 5,000,853,236 3,362,553,912
Barisal 3,659,729,442 2,722,779,638
Comilla 1,478,236,149 1,277,441,177
Rajshahi 2,627,478,514 2,303,822,371
Rangpur 3,471,386,674 2,691,159,557
Mymensingh 3,576,182,836 2,559,094,780
Sylhet 920,802,817 772,121,342
25,079,362,567 18,757,181,301
Out side Bangladesh - -
306,724,039,949 247,490,607,160

7.08 Sector-wise loans and advances

Government sector 365,459,000 365,459,000

Other public sector 12,336,707,000 11,412,513,000
Private sector 294,021,873,949 235,712,635,160
306,724,039,949 247,490,607,160

7.09 Sector-wise classified loans and advances

Government
Standard - -
SMA - -
Sub-standard - -
Bad/Loss 365,459,000 365,459,000
365,459,000 365,459,000

Annual Report 2019 285

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
Other public
Standard 12,209,257,000 11,285,063,000
SMA - -
Sub-Standard - -
Doubtful - -
Bad/Loss 127,450,000 127,450,000
12,336,707,000 11,412,513,000

Private
Standard 233,501,076,259 181,689,398,730
SMA 14,868,035,106 10,227,596,121
Sub-standard 844,510,088 346,737,154
Doubtful 480,800,000 719,974,789
Bad/Loss 44,327,452,496 42,728,928,366
294,021,873,949 235,712,635,160
306,724,039,949 247,490,607,160

7.10 Classification of loans and advances including bill purchased and discounted

Unclassified
Standard (including staff loan) 245,710,333,259 192,974,461,730
Special mention account (SMA) 14,868,035,106 10,227,596,121
260,578,368,365 203,202,057,851

Classified
Su-bstandard 844,510,088 346,737,154
Doubtful 480,800,000 719,974,789
Bad/Loss 44,820,361,496 43,221,837,366
46,145,671,584 44,288,549,309
306,724,039,949 247,490,607,160
Percentages of classified loans and advances 16.15% 19.21%

Details in Schedule- 'C'

7.11 Particulars of required provision for loans and advances

Required provision for loans and advances:
For unclassified
Standard 4,643,300,318 3,424,754,882
Special mention account (SMA) 727,100,000 191,745,118
5,370,400,318 3,616,500,000
For classified
Substandard 77,400,000 24,770,000
Doubtful 129,400,000 134,352,061
Bad/Loss 21,552,300,000 22,176,704,024
21,759,100,000 22,335,826,085
Special required provision - -
Required provision for loans and advances 27,129,500,318 25,952,326,085

Off balance sheet Item

Required provision for Off-balance sheet item 270,799,700 189,372,000

Total Required provision for loans and advances & Off Balance Sheet item 27,400,300,018 26,141,698,085

286
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
Provision maintained
For unclassified (General )
Standard
Previous balance as provision 1,874,813,969 1,435,370,509
Add: Transfar from SMA loans during the year - 348,143,460
Add: Transfar from bad & loss loans during the year 2,488,600,000
Less: Transfar to SMA loans during the year (535,354,882) -
Add: Made during the year 815,300,000 91,300,000
4,643,359,087 1,874,813,969

Special mention account (SMA)

Previous balance as provision 191,745,118 539,888,578
Less: Transfar from Standard loans during the year 535,354,882 (348,143,460)
727,100,000 191,745,118

Total Provision maintained for unclassified (General ) 5,370,459,087 2,066,559,087

*General provision is kept @ 1% on general loans and advances / investments and 0.25% on SME financing, 2% on certain other types
of lending and 5% on consumer financing.

For classified (Specific)

Substandard
Previous balance as provision 24,770,000 43,899,999
Less: Transfer to Bad/Loss during the year - (19,129,999)
Add: Transfer from Bad/Loss during the year 32,400,000
Add: Transfer from Doubtful loans during the year 4,852,061
Add: Made during the year 15,429,505 -
77,451,566 24,770,000

Doubtful
Previous balance as provision 134,352,061 705,299,999
Less: Transfer to Substandard during the year (4,852,061) -
Less: Transfer to Bad/Loss during the year - (570,947,938)
Add: Made during the year - -
129,500,000 134,352,061

Bad/Loss
Previous balance as provision 12,357,973,548 10,277,908,901
Less: Adjustment during the year (601,615) (13,290)
Add: Transfer From Substandard loans during the year - 19,129,999
Less: Transfer to Substandard loans during the year (32,400,000) -
Less: Transfer to Standard loans during the year (2,488,600,000)
Add: Transfer From DF loans during the year - 570,947,938
Add: Made during the year - 1,490,000,000
9,836,371,933 12,357,973,548
Total Provision maintained for classified Loan (Specific) 10,043,323,499 12,517,095,609
Total Provision maintained for Loan & Advance (General & Specific) 15,413,782,586 14,583,654,696

Provision maintained (Off Balance Sheet Item)

Previous balance as provision 196,858,150 196,858,150
Adjustment with classified loan (Transferred to provision for loans and advances) 13.06 - -
Provision made during this year (transferred from note. 13.07) 105,000,000 -
Total Provision maintained for Off Balance Sheet Item 301,858,150 196,858,150

Annual Report 2019 287

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018

Total Provision maintained (loans and advances & Off Balance Sheet Exposure) 15,715,640,736 14,780,512,846
Total Provision surplus / (shortfall) (provision for loans and advances & Off
(11,684,659,282) (11,361,185,238)
Balance Sheet Exposure)
Shortfall of Provision Exempted by Bangladesh Bank (for Loans and Advence
& off Balnce Sheet) as per letter no. wWweAvB-2(Dwe-4)/2419/2020-855 Dated 11,684,659,282 11,361,185,238
24 June 2020.
Provision surplus / (shortfall) this year - -
Bangladesh Bank classified some loans and advances based on qualitative judgment and objective criteria. As a result, total required
provision against loans & advance and off balance sheet exposure stood at Taka 2,740.03 crore before closing of 31 December,
2019. Bank maintained provision for loans and advances and off balance sheet exposure amounting to Taka 1,571.56 crores. As per
bank’s application, Bangladesh Bank through its letter no. wWweAvB-2(Dwe-4)/2419/2020-855, dated 24, June 2020 has given relief to
the Bank of BDT 1,213.26 crore (Loans & advance amounting Taka 1170.01 crore & Investment Share amounting Taka 43.25 crore)
against required provision.
7.12 Loans & Advance (Category wise)
A. Inside Banglades
I) Continus loan (CL-2)
Small & Medium Enterprise Financing 21,408,443,994 16,039,175,725
Other Than Small & Medium Enterprise Financing 85,150,337,444 62,574,034,430
106,558,781,438 78,613,210,155

II) Demand Loan (CL-3)

Small & Medium Enterprise Financing 38,272,311 1,224,869,974
Other Than Small & Medium Enterprise Financing 15,630,069,173 14,984,618,999
15,668,341,484 16,209,488,973

III) Term Loan ( CL-4)

Small & Medium Enterprise Financing (SMEF ) 4,862,809,980 4,528,877,451
Consumer Financing ( CF) 9,640,635,538 9,213,980,331
Housing Finance (HF) 1,967,880,590 1,246,801,276
Loans for Professionals to set up Business (LP 3,451,050,718 2,998,839,192
Loans to BHs/MBs/SDs 1,052,410,678 57,945,643
Others than SMEF,CF,BHs/MBs/SDs 136,186,864,725 112,671,948,116
157,161,652,229 130,718,392,009

IV) Short term Agri. Credit and Microcredit (CL-5)

Short term Agri. Credit 704,524,382 987,381,071
Microcredit 5,658,088,169 4,047,737,405
6,362,612,551 5,035,118,476
Total (I+II+III+IV) 285,751,387,702 230,576,209,613

V) Staff Loan 20,972,652,247 16,914,397,547

Total Loans & Advance 306,724,039,949 247,490,607,160

7.13 Net loans and advance

Carring Amount 306,724,039,949 247,490,607,160
Less: Interest Suspense & Penal Interest (22,768,231,660) (19,502,473,676)
Provision for loans & advance (Note-7.10) (15,413,782,586) (14,583,654,696)
Net Loans & Advance 268,542,025,703 213,404,478,788

288
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

7.14 Suit Filed by the Bank 2019

Types of suit No. of suit filed Amount
Artharin 2898 47,800,651,000
Writ petition 44 379,782,000
Appleal & Revision 39 331,758,000
Criminal 479 5,193,721,000
Others 110 4,848,260,000
3570 58,554,172,000

7.14.a Suit Filed by the Bank 2018

Types of suit No. of suit filed Amount
Artharin 2861 37,785,853,000
Writ petition 23 134,094,000
Appleal & Revision 44 351,278,000
Criminal 446 4,590,335,000
Others 198 4,476,932,000
3572 47,338,492,000

Amount in Taka
Particulars Notes
2019 2018

7.15 Movement of classified loan/ Non performing loan

Balance at the beginning of the year 44,288,549,309 45,820,572,224

Addition during the year 8,580,222,275 9,120,877,085
Cash recovery during the year (836,200,000) (2,131,600,000)
Adjustment during the year (5,886,900,000) (8,521,300,000)
Written off loan - -
46,145,671,584 44,288,549,309

7.16 Particulars of loans and advances

i) Loans considered good in respect of which the bank is fully secured 287,860,511,492 232,269,934,820
ii) Loans considered good against which the bank holds no other security
10,428,617,358 8,414,680,643
other than the debtors personal guarantee.
iii) Loans considered good secured by the personal undertaking of one or
8,434,911,099 6,805,991,697
more parties in addition to the personal guarantee of the debtors.
iv) Loans adversely classified; provision not maintained there against - -
306,724,039,949 247,490,607,160
v) Loans due by directors or officers of the bank or any of them either jointly
20,972,652,247 16,914,397,547
or separately with any other person
vi) Loans due by companies and firms in which the directors of the bank
have interests as directors, partners or managing agent or in case of private - -
companies as members

vii) Maximum total amount of advances, including temporary advances

made at any time during the period to the directors or manager or officers of 20,972,652,247 16,914,397,547
the bank or any of them either separately or jointly with any other persons
viii) Maximum total amount of advances including temporary advances
granted during the period to the company or firms in which the directors of
- -
the bank have interest as directors, partners or managing agents or in case
of private companies as members.
ix) Due from other banking companies - -
x) Information in respect of classified loans and advances
a) Classified loans for which interest not credited to income 44,820,361,496 43,221,837,366
(i) Decrease / (Increase) of provision (bad and loss) (624,404,024) (651,895,976)

Annual Report 2019 289

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
(ii) Cumulative amount of written off loans 10,191,900,000 10,191,900,000
(iii) Amount of debt recovered against the debt which was previously written off 55,100,000 281,400,000
b) Amount of provision kept against loans classified as bad/ loss as at the
21,552,300,000 22,176,704,024
reporting date
c) Interest creditable to the interest suspense account 3,265,757,984 2,812,291,937
d) Interest credited to the interest suspense account 22,768,231,660 19,502,473,676
xi) Written off loans balance 6,028,895,328 6,145,489,800
Amount written off during the year - -
The amount of written off loan for which lawsuit has been filed. 6,028,895,328 6,145,489,800

7(a) Consolidated loans and advances

Loans, cash credits and overdrafts etc.
Rupali Bank Limited 7.01 305,255,059,510 246,609,058,179
Rupali Investment Limited 211,969,209 246,699,948
Rupali Bank Securities Limited ** 265,244,885 258,444,715
305,732,273,604 247,114,202,842
Bills purchased and discounted
Rupali Bank Limited 1,468,980,439 881,548,981
Rupali Investment Limited - -
Rupali Bank Securities Limited - -
1,468,980,439 881,548,981
307,201,254,043 247,995,751,823
**Rupali Bank Securities Limited was included in Investment note no.6(a) in 2018 amounting Tk-25,84,44,715 now transfer to Loans
& Advance (7a).
8.00 Fixed assets including land, building, furniture and fixtures
Land 10,011,039,466 10,011,039,466
Building 4,190,918,137 3,935,392,245
Furniture and fixture 824,111,565 727,620,624
Mechanical equipment 1,247,852,070 1,234,331,886
Vehicles 511,420,729 511,420,747
Computer 702,806,920 571,529,602
17,488,148,887 16,991,334,570
Interior Decoration & Renovation 4,121,333 -
Software (Intangible Asset's ) 170,849,721 130,507,467
17,663,119,941 17,121,842,037
Accumulated depreciation & Amortization 3,335,677,646 2,890,806,740
Written down value at 31 December,2019 14,327,442,295 14,231,035,297

Details in schedule- 'D'

The fixed asset recognition and measurement policy are described in note No.2.14.04

8(a) Consolidated Fixed assets including land, building, furniture and fixtures
Rupali Bank Limited 8.00 14,327,442,295 14,231,035,297
Rupali Investment Limited 6,003,375 4,985,103
Rupali Bank Securities Limited 8,410,939 7,581,500
14,341,856,609 14,243,601,900

290
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
9.00 Other assets
Income generating other assets
Investment in shares of subsidiary company 9.01 2,000,000,000 2,000,000,000
Receivable from Orion Infrastructure Ltd. - 1,319,400,000
2,000,000,000 3,319,400,000

Non Income generating other assets

Advance rent and advertisement 9.02 176,028,056 117,485,082
Interest accrued 9.03 5,927,181,118 5,402,138,869
Interest receivable Br. - 101,458
Accrued income on property 4,907,003 4,907,003
Prepaid Expenses 9.04 66,918,937 252,869,692
Stationary and stores, Stock, stamps and forms 9.05 77,937,167 89,319,572
Branch adjustment account 9.06 3,375,172,405 2,475,156,763
Security deposits 1,994,189 1,809,869
Advance Payment for Airport Both 34,304,558 29,415,829
Suspense accounts 9.07 3,847,429,006 5,168,002,956
Others 9.08 9,144,891,902 8,253,275,984
22,656,764,342 21,794,483,075
24,656,764,342 25,113,883,075

9.01 Investment in share in subsidiary company

Rupali investment limited 1,000,000,000 1,000,000,000
Rupali Bank Securities limited 1,000,000,000 1,000,000,000
2,000,000,000 2,000,000,000

9.02 Advance rent and advertisement etc.

Advance rent 176,028,056 117,485,082

9.03 Interest accrued on investment

Balance with other Bank and Financial Institution 763,597,996 1,104,173,996
Call money - 3,275,000
Government treasury bonds 1,246,791,900 779,963,238
Corporate bonds 137,739,693 -
Debenture 17,553,310 26,794,870
Subordinated Bond 490,411,628 458,807,475
Accrued income Inv. (redeemable bond of Orion) 402,782,093 589,492,679
Commercial Paper - 8,191,667
Accrued income from preference share 2,608,575,643 2,246,135,526
Interest Receivable on Dividend from Redeemable Preference Share - 20,200,000
Interest Receivable on Dividend from Convertible Equity Share - 9,573,750
Interest accrued others 259,728,856 155,530,669
5,927,181,118 5,402,138,869

9.04 Prepaid Expenses

Renovation Development Expenses 3,119,092 3,366,184
Advances on HO Division & Others 63,799,845 249,470,783
Building (Advance) - 32,725
66,918,937 252,869,692

Annual Report 2019 291

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
9.05 Stationary and stores, Stock, stamps and forms
Stationary and stores 68,350,702 79,943,254
Stock, stamps and forms 9,586,465 9,376,318
77,937,167 89,319,572
9.06 Branch adjustment accounts
Debit balance
Head office account 992,969,600,160 641,012,888,524
Branch account 61,183,894 61,264,459
993,030,784,054 641,074,152,983
Credit balance
Head office account 989,651,610,279 638,594,994,850
Branch account 4,001,370 4,001,370
989,655,611,649 638,598,996,220
3,375,172,405 2,475,156,763
During the year net balance of Branch Adjustment arrived as debit balance has been shown under head "other Assets". The Net debit
balance of Branch Adjustment account arrived due to transit in responding entries.
9.07 Suspense account
Demand drafts paid without advice 3,409,888 6,343,739
Foreign drafts paid from suspense account 677,825 727,056
Advance Legal Expenses 2,038,336 754,795
Advance paid to Rupali Securities Ltd. 119,995 119,995
Advanced Dividend paid to Govt. 1,500,000 1,500,000
WES fund purchased 608,834,798 2,497,792,863
Suspense A/c Sanchaypatra 2,979,618,340 2,113,373,815
Sundry debtors 251,229,823 547,390,693
3,847,429,006 5,168,002,956
9.08 Others
Pension paid to Rupali Bank Ltd. employees 6,393,865 14,337,722
Pension paid to retired Govt. servants 21,690,362 37,046,995
Medical All. Paid to RBL Ret. Employee 97,833 758,500
Eid Ul Azha Paid to RBL Ret. Employee 867,268 1,190,441
Eid-ul Fitre Paid to RBL Ret. Employee 228,286 531,768
Nababarsa Bhata Paid to RBL Ret. Employee 86,901 20,471
Jute, sector corp, agri. credit and others 1,454,042,946 1,454,042,946
Protested bills 257,254,638 250,721,951
Agricultural loan transferred to BKB & RAKUB 302,492,619 302,492,619
Remission of rural house building loan 731,181 731,181
Remission of agri loans 236,605,856 236,567,189
Exchange equalization 42,893,697 42,893,697
Web Remittance Payment 100,614,819 52,043,878
Receivable from Summit S Bank - related party * 36,118,569 36,118,569
Printing Materials 170,946 -
Advance paid to Rupali Branch Agent (MFS) 2,854,938 -
Cash incentive on FR (Branch) 686,282 -
Miscellaneous Advance 1,902,870 1,775,673
Brac bank (ATM) 6,352,398 644,037
Deferred tax assets 9.08.01 657,145,796 746,626,801
Advance tax 9.08.02 6,015,659,834 5,074,731,548
9,144,891,902 8,253,275,984

* This amount represent receivable in respect of share of Head office Ex. Rupali Bank Limited, Karachi Branch.

292
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
9.08.01 Deferred tax assets
Opening balance on 01 January 746,626,801 935,359,085
Less: Adjustment during the year 39.02.02 (89,481,005) (188,732,284)
Balance on 31st December 657,145,796 746,626,801

9.08.02 Advance tax

Balance of advance income tax on 1 January 5,074,731,548 4,421,298,379
Paid during the year 940,928,285 653,433,169
6,015,659,834 5,074,731,548
Source Tax Deducted for the year
2003 223,304,594 223,304,594
2004 107,614,028 107,614,028
2005 93,376,676 93,376,676
2006 88,693,685 88,693,685
2007 384,428,714 384,428,714
2008 243,303,526 243,303,526
2009 57,388,938 57,388,938
2010 34,846,322 34,846,322
2011 39,054,194 39,054,194
2012 79,421,075 79,421,075
2013 180,342,761 180,342,761
2014 535,876,210 535,876,210
2015 419,594,550 419,594,550
2016 1,098,809,693 1,098,809,693
2017 835,243,413 835,243,413
2018 653,433,169 653,433,169
2019 940,928,286 -
Total 6,015,659,834 5,074,731,548

9.09 Classification of other assets

Unclassified 21,901,142,945 22,379,798,875
Doubtful - -
Bad / Loss 2,755,621,397 2,734,084,201
24,656,764,342 25,113,883,075

9.10 Other assets classified by generating of income

Income generating 2,000,000,000 3,319,400,000
Non-income generating 22,656,764,342 21,794,483,075
24,656,764,342 25,113,883,075

9(a) Consolidated other assets

Rupali Bank Limited 9.00 24,656,764,342 25,113,883,075
Rupali Investment Limited 67,780,509 159,539,514
Rupali Bank Securities Limited 325,171,291 322,025,230
25,049,716,142 25,595,447,819
Less: Investment in subsidiary company 2,000,000,000 2,000,000,000
23,049,716,142 23,595,447,819

10.00 Non banking assets: - -

Annual Report 2019 293

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
11.00 Borrowing from other banks, financial institutions and agents
In Bangladesh 11.01 11,624,599,019 6,913,398,767
Outside Bangladesh 11.02 441,214,249 94,304,656
12,065,813,268 7,007,703,423
11.01 In Bangladesh
Local Currency 11.01.01 11,624,599,019 6,913,398,767
Foreign Currency 11.01.02 - -
11,624,599,019 6,913,398,767
11.01.01 Local Currency
Refinance against rural housing scheme 7,160 210,480
Refinance against jute scheme 362,825,000 378,600,000
Borrowing from other Bank 4,810,000,000 -
RBL Subordinated Bond * 6,000,000,000 6,000,000,000
Refinance against Brick 331,767,859 414,589,287
Refinance in Dairy Milk Production & Artificial Insemination 119,999,000 119,999,000
11,624,599,019 6,913,398,767
* RBL Subordinated Bond
Sonali Bank Limited 2,000,000,000 2,000,000,000
Agrani Bank Limited 2,000,000,000 2,000,000,000
Janata Bank Limited 2,000,000,000 2,000,000,000
6,000,000,000 6,000,000,000

11.01.02 Foreign Currency

11.02 Outside Bangladesh ( NOSTRO accounts )

Regular:
USD 211,763,388 -
JPY 10,561,210 87,042,457
SGD 367,315 -
EURO 218,522,336 7,262,199
441,214,249 94,304,656

Details in schedule- 'A'

11.03 Borrowings from other banks, financial institutions and agents

Secured by demand promissory (DP) notes and agreement 814,599,019 913,398,767
Unsecured borrowing 11,251,214,249 6,094,304,656
12,065,813,268 7,007,703,423

11.04 Term grouping

11.04.01 Short term borrowing

Borrowing from other banks and agents 441,214,249 94,304,656
Borrowing from other Bank 4,810,000,000 -
5,251,214,249 94,304,656

11.04.02 Long term borrowing

Refinance against rural housing scheme 7,160 210,480
RBL Subordinated Bond 6,000,000,000 6,000,000,000
Refinance against Brick 331,767,859 414,589,287
Refinance in Milk Production & Artificial Insemination 119,999,000 119,999,000
Refinance against jute scheme 362,825,000 378,600,000
6,814,599,019 6,913,398,767
12,065,813,268 7,007,703,423

294
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
11.05 Maturity wise grouping
Repayable on demand - -
Payable within one month 4,883,105,370 697,177,370
Over 1 month but within 3 months 499,100,549 117,759,605
Over 3 months but within 1 year 683,600,752 192,766,448
Over 1 year but within 5 years 3,600,003,958 3,600,000,000
Over 5 year but within 10 years 2,400,002,639 2,400,000,000
12,065,813,268 7,007,703,423
11(a) Consolidated borrowing from other banks, financial institutions and agents
Rupali Bank Limited 11.00 12,065,813,268 7,007,703,423
Rupali Investment Limited - -
Rupali Bank Securities Limited - -
12,065,813,268 7,007,703,423

12.00 Deposit and other accounts of the Bank

Current and other accounts 12.01 29,091,344,645 43,868,759,290
Bills payable 12.02 6,382,692,663 4,339,273,881
Saving deposits 12.03 87,112,204,653 79,165,480,222
Term / Fixed deposits 12.04 292,038,008,209 262,175,966,008
Other deposits - -
414,624,250,170 389,549,479,401

12.01 Current and other accounts

Current deposits 18,768,200,131 35,617,323,048
Call deposits 51,517,882 55,297,820
Other accounts 12.01.01 7,055,823,030 5,366,388,438
Deposit in Mobile Banking 12.01.02 3,215,803,602 2,829,749,984
29,091,344,645 43,868,759,290

12.01.01 Other deposit & sundry deposit

Hajj deposits 2,585,348 2,952,116
Margin on LC 361,634,135 412,932,121
Margin on guarantee 337,970,731 235,110,569
Special margin WES 2,735,619 2,735,619
Other margin 427,265,220 217,331,262
Key deposit 1,488,778 1,408,698
Staff security deposit 9,816,688 10,351,188
Interest suspense (jute) 688,173 515,273
Security deposit (general) 48,118,260 47,879,777
Special exchange adjustment 9,352 9,352
Sundry creditor 2,265,643,494 1,663,600,801
Overdue fixed deposit 37,663,980 38,010,236
Cash credit (Hypo) Credit Balance 1,600,319 2,106,989
Staff contributory provident fund 2,766,143,577 2,373,059,816
Bank contributory provident fund 2,261,772 2,021,252
Foreign bank accounts Taka (WES) 165,910,803 84,387,361
Insurance premium on locker deposit 239,676 221,920
Foreign currency accounts 624,047,105 271,754,089
7,055,823,030 5,366,388,438

Annual Report 2019 295

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
12.01.02 Deposit in Mobile Banking
T-Distributors wallet deposit 5,085,473 12,941,977
Agent wallet deposit 165,346,725 238,127,793
Customer wallet deposit 2,717,759,533 2,468,846,767
Merchant Wallet Deposit 292,367,256 69,114,759
PESP Wallet Deposit - 16,162,875
Distributors wallet deposit 35,244,616 24,555,814
3,215,803,602 2,829,749,984

12.02 Bills payable

Pay order payable 5,888,654,000 3,292,202,830
Foreign draft payable 17,067 17,067
Local draft payable 253,609,549 711,257,109
Mail transfer payable 276,622 276,622
Telegraphic transfer payable 91,000 5,518,420
Foreign bill receivable (BTOB) 240,044,426 330,001,833
6,382,692,663 4,339,273,881

12.03 Saving deposits

Saving Bank Deposit 86,317,738,367 78,431,883,587
Savings Account ( Pothoful) 1,050,580 1,179,263
Rupali Student Savings A/C (RSSA) 731,290,706 681,735,615
Krishaker Jannya Savings Bank Deposit 40,746,931 43,422,815
Rupali senior Citizen Savings Scheme(RSCSS) 21,378,069 7,258,942
87,112,204,653 79,165,480,222

12.04 Term / fixed deposit

Fixed deposits 12.04.01 208,314,427,260 165,141,453,255
Special notice deposit (SND) 60,324,338,214 68,785,929,646
Deposit pension scheme (DPS) 1,061,396 1,254,226
Rupali deposit scheme etc. 12.03.02 23,398,181,339 28,247,328,882
292,038,008,209 262,175,966,008

12.04.01 Fixed deposits

Government Organizations 10,320,170,000 6,756,120,000
Autonomous & Semi Autonomous Organizations 10,286,675,000 6,643,095,000
Non Financial Public Enterprise 98,732,812,000 85,804,960,000
Local Authorities 131,856,000 131,294,000
Insurance Company & Pension Funds-Public 869,409,000 1,148,419,000
Other Non Financial Public Enterprise 2,156,115,000 1,473,296,000
Other non Financial Corporation Private 4,333,754,000 3,957,930,000
Non-Bank Depository Corporations Private 16,780,093,000 10,720,691,000
Non-Bank Depository Corporations Public 209,295,000 4,063,000
Individuals & Others (Household Resident) 64,494,248,260 48,501,585,255
208,314,427,260 165,141,453,255

296
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
12.04.02 Rupali deposit scheme
Rupali monthly profit scheme(RMPS) 32,539,445 354,943,859
Rupali double benefit scheme(RDBS) 5,573,866,528 11,817,924,965
Rupali triple benefit scheme(RTBS) 2,696,057,879 2,429,605,658
Rupali monthly earning scheme (RMES) 2,674,633 3,846,621
Haato daridro account 71,927,307 73,124,137
Rupali deposit pension scheme(1) 9,942 9,942
Rupali deposit pension scheme(2) - 87,391
Rupali deposit scheme(RDS) 2,039,612,576 1,952,929,808
Rupali monthly saving scheme (RMSS) 11,404,287,429 10,987,933,295
Rupali millinior deposit scheme (RMDS) 1,048,043,087 382,604,642
Rupali quarterly profit scheme (RQPS) 56,456,408 52,167,164
Rupali Monthly Benefit for Senior Citizen (RMBSC) 399,888,966 144,660,367
Rupali lackpoti deposit scheme (RLDS) 40,943,146 25,043,271
Rupali kotipoti deposit scheme (RKDS) 31,873,995 22,447,763
23,398,181,339 28,247,328,882
12.05 Deposit and other accounts
Deposit from bank - -
Other organization / clients deposits 414,624,250,170 389,549,479,401
414,624,250,170 389,549,479,401
12.06 Sector wise deposit including bills payable
Presidency, prime minister office and judiciary 13,863,638,000 9,459,603,000
Autonomous and semi-autonomous bodies 14,722,673,000 9,077,060,000
Other public sector 142,575,784,000 149,054,187,000
Bank and financial institutions (public) 3,658,295,000 2,911,824,000
Private sector 239,803,860,170 219,046,805,401
414,624,250,170 389,549,479,401
12.07 Geographical location-wise deposit
Urban
Local Office 26,592,136,037 40,348,713,326
Dhaka North 69,284,585,523 59,056,957,290
Dhaka South 120,060,721,969 123,336,855,935
Chittagong 48,138,390,527 29,046,038,589
Khulna 9,472,156,907 10,692,496,034
Barisal 8,700,670,173 8,778,437,479
Comilla 11,392,472,701 10,030,381,570
Rajshahi 12,783,683,282 11,590,245,416
Rangpur 5,878,562,335 5,401,220,278
Mymensingh 9,818,254,012 11,271,442,386
Sylhet 6,583,132,280 6,637,426,912
328,704,765,747 316,190,215,215
Rural
Local Office
Dhaka North 11,923,136,588 9,486,873,130
Dhaka South 3,348,948,212 3,299,466,616
Chittagong 5,174,100,064 5,310,811,499
Khulna 9,217,598,466 7,188,997,154
Barisal 8,572,037,882 6,983,207,746
Comilla 16,124,703,861 14,323,606,042
Rajshahi 7,939,014,852 7,478,611,680
Rangpur 4,340,766,093 3,549,846,191
Mymensingh 11,744,442,249 8,257,243,655
Sylhet 7,534,736,157 7,480,600,473
85,919,484,424 73,359,264,186
414,624,250,170 389,549,479,401

Annual Report 2019 297

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
12.08 Maturity grouping of deposits

Payable on demand 13,766,600,000 13,766,600,000

Payable within one month 43,235,992,714 45,661,205,575
Over 1 month but within 3 months 85,435,750,741 110,661,320,191
Over 3 months but within 1 years 158,551,314,150 112,347,181,516
Over 01 Year but within 5 years 87,971,726,183 84,634,058,007
Over 5 years but within 10 year 25,662,866,382 22,479,114,112
414,624,250,170 389,549,479,401

12(a) Consolidated deposit and other accounts

Rupali Bank Limited 12.00 414,624,250,170 389,549,479,401
Rupali Investment Limited - -
Rupali Bank Securities Limited - -
414,624,250,170 389,549,479,401

Categoriwise deposit
Current and other accounts 29,091,344,645 43,868,759,290
Bills payable 6,382,692,663 4,339,273,881
Saving deposits 87,112,204,653 79,165,480,222
Term / Fixed deposit 292,038,008,209 262,175,966,008
Other deposit - -
414,624,250,170 389,549,479,401

13.00 Other liabilities

Guarantee cover banking reserve 33,034,636 33,034,636
Net foreign currency adjustment 86,416,929 86,416,929
Unpaid dividend 50,992 50,993
Interest payable 13.01 4,387,105,886 3,340,025,845
Other accounts 13.02 1,632,772,679 2,860,344,509
Provision for other assets 13.03 2,755,621,397 2,734,084,201
Provision for current tax 13.04 2,543,818,567 2,314,113,491
Deferred tax liabilities 13.05 512,624,656 521,375,331
Provision for off-balance sheet exposure 13.06 301,858,150 196,858,150
Provision for loans and advances 13.07 15,413,782,586 14,583,654,696
Interest suspense accounts 13.08 22,768,231,660 19,502,473,676
Other provision 13.09 3,247,926,815 3,483,287,937
53,683,244,953 49,655,720,394

13.01 Interest payable

Fixed deposits 4,353,584,546 3,310,596,403
All scheme deposit 2,748,737 2,373,233
Sub-ordinated Bond 30,772,603 26,400,000
Branch Accounts - 656,209
4,387,105,886 3,340,025,845

298
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
13.02 Other accounts
Excess pay recovery 121,106 121,106
Excise duty (Adv. & Investment) 101,953 158,743
Excise duty payable 30,000 30,000
Source tax deduct from depositor and other 840,559,727 783,666,416
WES fund purchase (Dollar & pound ) 997,247 1,225,327,937
Withheld salary 619,051 619,051
Excise duty on deposits 395,611,698 373,491,359
Tran tahabeel 139,164 139,164
Tran Punarbashan 828,044 828,044
VAT 111,887,174 93,742,587
S/Dep. A/c BACH Charge 875,654 653,338
Levy Deposit 385,107 385,107
Service Charge 2,340 2,340
Death Relief 10,000 10,000
Fund Held 675,616 675,616
Unclaimed A/C 5,644 5,644
Income Tax 1,676,092 2,984,280
Q-Cash Commission Accounts 2,368 1,901
Income Tax Payable (Mobile Banking) 25,114,938 76,650
Remission on Crops Loan 10,180 10,180
Remission on Panel Interest 3,033 3,033
Service Charge (BB) 48,332 34,385
CIB 233,729 233,729
Staff Loan Recover 28,883 28,883
Cashier Cum LDA 2,429,856 2,429,856
Pakistani Bill 2,388,821 2,388,821
Impress Fund 706,819 706,819
Reserve for Other 7,646 7,646
Provision Account 1,217,228 1,217,228
BACH Charge 44,940 56,563
Overdue Accrued Interest on FDR 118,458,000 118,458,000
ATM Payable 4,600 -
Miscellaneous other accounts 127,547,690 251,850,083
1,632,772,679 2,860,344,509

13.03 Provision for other assets

Provision for unforeseen losses (protested bill) 13.03.01 257,628,375 251,095,688
Provision for rural credit fund 13.03.02 230,215,054 231,890,537
Provision for sundry debtors 13.03.03 309,368,870 320,888,878
Provision for reconciled entries 13.03.04 143,914,424 110,714,424
Provision for demand draft paid without advice 13.03.05 11,671,570 16,671,570
Provision for rural house building 731,181 731,181
Provision for exchange adjustment 42,893,697 42,893,697
Provision for transfer of BKB & RAKUB 305,155,280 305,155,280
Provision for jute, sector corp. and Agri. Cr. 1,454,042,946 1,454,042,946
2,755,621,397 2,734,084,201

Annual Report 2019 299

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
13.03.01 Provision for unforeseen losses (protested bill)
Balance at the beginning of the year 251,095,688 210,095,688
Add: Made during the year 38.00 6,532,687 41,000,000
Balance at the end of the year 257,628,375 251,095,688
13.03.02 Provision for rural credit fund
Balance at the beginning of the year 231,890,537 231,890,537
Less: adjustment during the year (1,675,483) -
Balance at the end of the year 230,215,054 231,890,537
13.03.03 Provision for sundry debtors
Balance at the beginning of the year 320,888,878 320,888,878
Less: adjustment during the year (11,520,008) -
Balance at the end of the year 309,368,870 320,888,878
13.03.04 Provision for reconciled entries
Balance at the beginning of the year 110,714,424 130,714,424
Add: Made during the year 38.00 33,200,000 -
Less: Transfer to Retained Earnings - (20,000,000)
Balance at the end of the year 143,914,424 110,714,424
Details in Schedule- 'E'
13.03.05 Provision for demand draft paid without advice
Balance at the beginning of the year 16,671,570 56,671,570
Add: Made during the year - -
Less: Transfer to Retained Earnings (5,000,000) (40,000,000)
Balance at the end of the year 11,671,570 16,671,570

13.04 Provision for current tax

Opening balance on 01 January 2,314,113,491 2,353,764,357
Add: Addition during the year 39.01 329,705,076 160,349,134
Less: Adjustment during the year (100,000,000) (200,000,000)
Balance at the end of the year 2,543,818,567 2,314,113,491

13.05 Deferred tax liabilities

Opening balance on 01 January 521,375,331 530,454,571
Add: Addition during the year 39.02.01 (8,750,675) (9,079,240)
Balance at the end of the year 512,624,656 521,375,331

13.06 Provision for off balance sheet exposure

Provision at the beginning of the year 196,858,150 196,858,150
Add: Made during the year 105,000,000 -
Provision held at the end of the year 301,858,150 196,858,150

13.07 Provision for loans and advances

Specific 13.07.01 10,043,323,499 12,517,095,609
General 13.07.02 5,370,459,087 2,066,559,087
15,413,782,586 14,583,654,696

13.07.01 Specific provision

Provision held at the beginning of the year 12,517,095,609 11,027,108,899
Less: Adjustment during the year (601,615) (13,290)
Less: Transfer to General Provision (2,488,600,000) -
Add: Provision made during the year 35.00 15,429,505 1,490,000,000
Provision held at the end of the year 10,043,323,499 12,517,095,609

300
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
13.07.02 General provision
Provision held at the beginning of the year 2,066,559,087 1,975,259,087
Add: Transfer from Specific Provision 2,488,600,000 -
Add: Made during the year 35.00 815,300,000 91,300,000
Provision held at the end of the year 5,370,459,087 2,066,559,087

13.08 Interest suspense accounts

Balance at the beginning of the year 19,502,473,676 16,690,181,739
Add: Amount transferred to interest suspense A/C 5,506,199,190 3,871,561,210
Less: Amount recovered from "Interest suspense A/C (2,232,788,091) (1,059,269,273)
Less: Interest suspense written off during the year (7,653,115) -
Balance at the end of the year 22,768,231,660 19,502,473,676
13.09 Other provision
Provision for audit fees 13.09.01 2,387,750 2,612,750
Provision for employee's pension 13.09.02 1,702,513,836 1,908,118,249
Provision for employee's gratuity 13.09.03 49,874,953 82,886,553
Provision for Bangladesh Industrial Finance Co. Ltd. 500,000,000 500,000,000
Provision for debenture 13.09.04 40,294,870 40,294,870
Provision for share investment (market value and face value) 13.09.05 263,176,610 263,176,610
Provision for incentive/performance bonus 13.09.06 460,942,763 464,927,980
Summit S Bank (Ex Arif Habib Bank) 13.09.10 10,000,000 10,000,000
Provision for BCCI Bank London 1,177,245 1,177,245
Provision for Good Borrower 13.09.07 9,201,331 10,000,000
Provision for Risk Fund 13.09.08 76,400,000 57,300,000
Provision for expenses 13.09.09 131,957,457 142,793,680
3,247,926,815 3,483,287,937
13.09.01 Provision for audit fees
Balance at the beginning of the year 2,612,750 2,867,000
Less: Paid during the year (1,725,000) (2,754,250)
Add: Made during the year 1,500,000 2,500,000
Balance at the end of the year 2,387,750 2,612,750
13.09.02 Provision for employee's pension fund
Balance at the beginning of the year 1,908,118,249 2,209,760,997
Add: Made during the year 38.00 - 120,000,000
Add: Addition during the year 789,107,415 616,178,661
Less: Paid during the year (994,711,828) (1,037,821,409)
Balance at the end of the year 1,702,513,836 1,908,118,249
A decision was taken in the Board Meeting No-1018 dated 31/01/2017 that required provision for pension & gratuity of the bank
calculated by an actuary firm and shortfall amounting Tk. 330.97 crore would have to be built up in the bank accounts over the next
9 (Nine) years. But recently as per a decision taken by the Ministry of Finance, pensioners cannot surrender 100% of their pension.
So cash outflow has been decreased for this purpose. Therefore a decision is taken further in the Board Meeting No-1049 dated
09/04/2018 that required provision for pension & gratuity would have to be built up in the bank accounts over the next 25 (Twenty
Five) years.
13.09.03 Provision for employee's gratuity
Balance at the beginning of the year 82,886,553 128,636,715
Add: Made during the year 38 - 20,000,000
Add: Addition during the year 40,000,000 -
Less: Paid during the year (73,011,600) (65,750,162)
Balance at the end of the year 49,874,953 82,886,553

Annual Report 2019 301

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
13.09.04 Provision for investment in Debenture
Balance at the beginning of the year 40,294,870 26,794,870
Add: Made during the year 37.00 - 13,500,000
Balance at the end of the year 40,294,870 40,294,870
13.09.05 Provision for investment in shares
Balance at the beginning of the year 263,176,610 173,176,610
Add: Made during the year 37.00 - 90,000,000
Balance at the end of the year 263,176,610 263,176,610
13.09.06 Provision against expenses (performance bonus)
Balance at the beginning of the year 464,927,980 443,122,919
Add: Made during the year 435,359,316 450,000,000
Less: Paid during the year (439,344,533) (428,194,939)
Balance at the end of the year 460,942,763 464,927,980
13.09.07 Provision for Good Borrower
Balance at the beginning of the year 10,000,000 10,000,000
Less: Paid during the year (798,669) -
Balance at the end of the year 9,201,331 10,000,000
Note: We have kept provision amounting Tk. 1.00 crore in 2015 to provide incentive to good borrowers in the form of interest rebate
as per instruction laid down in BRPD circular letter no. 03 dated February 19,2015.
13.09.08 Provision for Risk Fund
Balance at the beginning of the year 57,300,000 38,200,000
Add: Made during the year 19,100,000 19,100,000
Balance at the end of the year 76,400,000 57,300,000

13.09.09 Provision for expenses

Balance at the beginning of the year 142,793,680 292,785,145
Add: Made during the year 165,560,000 822,437,532
Less: Provision transfer to Retained Earnings - (142,285,145)
Less: Adjustment during the year (176,396,224) (830,143,852)
Balance at the end of the year 131,957,457 142,793,680

13.09.10 Summit S Bank (Ex Arif Habib Bank)

Balance at the beginning of the year 10,000,000 -
Add: Made during the year 38.00 - 10,000,000
Balance at the end of the year 10,000,000 10,000,000

13(a) Consolidated Other liabilities

Rupali Bank Limited 13.00 53,683,244,953 49,655,720,394
Rupali Investment Limited 305,732,910 406,227,540
Rupali Bank Securities Limited 175,940,274 141,321,504
54,164,918,137 50,203,269,438

14.00 Share capital

14.01 Authorized capital

700,000,000 ordinary shares of Tk. 10 each 7,000,000,000 7,000,000,000

302
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
14.02 Issued, subscribed and paid up capital
The issued share capital of the bank is the total nominal value of the shares of the bank which have been issued to shareholders and remain
outstanding.
Opening balance 3,765,169,390 3,036,426,930
Bonus issue during the year 376,516,930 728,742,460
Balance at the end of the year 4,141,686,320 3,765,169,390
14.03 Issued, subscribed and fully paid up capital
This represent shares issued as on 31 December 2019 and made up as follows:
% No. of Share No. of Share

Government 90.19% 373,527,150 339,570,137

General public 9.81% 40,641,482 36,946,802
Total 414,168,632 376,516,939
Face value (Tk.) Face value (Tk.)
Government 3,735,271,500 3,395,701,370
General public 406,414,820 369,468,020
Total 4,141,686,320 3,765,169,390
Details shown in Annexure-I
14.04 Capital adequacy (Solo)
Common Equity Tier-I Capital 13,979,052,269 13,441,275,759
Tier-II Capital 11,672,317,237 8,708,193,516
Total Regulatory Capital 25,651,369,506 22,149,469,275
Required capital (10% of total risk weighted asset Tk.24817.64 crore) 24,817,640,000 22,104,708,000
Capital excess / (short ) 833,729,506 44,761,275
*Capital to Risk Weighted Assets Ratio ( CRAR) 10.34% 10.02%

Common Equity Tier-I Capital

Paid up capital 4,141,686,320 3,765,169,390
Share money deposit 6,799,953,800 6,799,953,800
Statutory reserve 3,443,026,585 3,251,663,997
Retained earnings 396,537,589 410,238,889
Sub Total 14,781,204,295 14,227,026,077
Regulatory Adjustment : Deductions (100% of Total Deferred Tax assets) (657,145,796) (671,964,121)
Intangible Asset's (Software) (145,006,230) (113,786,197)
Total Common Equity Tier-I Capital 13,979,052,269 13,441,275,759
Additional Tier-I Capital - -
Total Common Equity Tier-I Capital 13,979,052,269 13,441,275,759
Tier-II Capital (Going Concern Capital)
General provision (1% to 5% of UCL and OBI) 5,672,317,237 2,263,417,237
Asset revaluation reserve ( 50%) 1,554,171,127 1,554,171,127
Revaluation reserve for securities (HTM & HFT) (50%) 391,481,414 391,481,414
Subordinated Bond 6,000,000,000 6,000,000,000
Revaluation reserves for equity instrument up to 10% 6.02.01 278,228,854 278,228,854
13,896,198,631 10,487,298,631
Less: 100% of revaluation reserves for PPE, securities & equity securities (as
2,223,881,394 1,779,105,115
per Basel-III)
Total 11,672,317,237 8,708,193,516
25,651,369,506 22,149,469,275

Annual Report 2019 303

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
Required capital
Total assets including off-balance sheet items 647,547,064,829 567,815,570,048
Total risk weighted assets 248,176,400,000 221,047,080,000
Required capital being 10% of total risk weighted assets 24,817,640,000 22,104,708,000
Capital Requirements (Solo)
Tier-1 Required 6.00% 6.00%
Tier-1 Held 5.63% 6.08%
Tier-2 Required 4.00% 4.00%
Tier-2 Held 4.70% 3.94%
Total Required 10.00% 10.00%
Total Held 10.34% 10.02%
14.05 Consolidated Capital adequacy
Common Equity Tier-I Capital 14,142,519,375 13,580,731,709
Tier-II Capital 11,672,317,237 8,708,193,516
Total Regulatory Capital 25,814,836,612 22,288,925,225
Required capital (10% of total risk weighted asset Tk.25,196.22 crore) 25,196,220,000 22,160,568,000
Capital excess / (short ) 618,616,612 128,357,225
*Capital to Risk Weighted Assets Ratio ( CRAR) 10.25% 10.06%
Common Equity Tier-I Capital
Paid up capital 4,141,686,320 3,765,169,390
Share money deposit 6,799,953,800 6,799,953,800
Statutory reserve 3,443,026,585 3,251,663,997
Retained earnings 560,004,695 549,694,839
Sub Total 14,944,671,401 14,366,482,027
Regulatory Adjustment : Deductions (90% of Total Deferred Tax assets) (657,145,796) (671,964,121)
Intangible Asset's (Software) (145,006,230) (113,786,197)
Total Common Equity Tier-I Capital 14,142,519,375 13,580,731,709
Additional Tier-I Capital - -
14,142,519,375 13,580,731,709
Tier-II Capital (Gone Concern Capital)
General provision (1% to 5% of UCL and OBI) 5,672,317,237 2,263,417,237
Asset revaluation reserve ( 50%) 1,554,171,127 1,554,171,127
Revaluation reserve for securities (HTM & HFT) (50%) 391,481,414 391,481,414
Subordinated Bond 6,000,000,000 6,000,000,000
Revaluation reserves for equity instrument up to 10% 6.02.01 278,228,854 278,228,854
13,896,198,631 10,487,298,631
Less: 100% of revaluation reserves for PPE, securities & equity securities (as per Basel-III) 2,223,881,394 1,779,105,115
Total 11,672,317,237 8,708,193,516
25,814,836,612 22,288,925,225
Required capital
Total assets including off-balance sheet items 648,192,205,119 568,502,575,042
Total risk weighted assets 251,962,200,000 221,605,680,000
Required capital being 10% of total risk weighted assets 25,196,220,000 22,160,568,000

Capital Requirements (Consolidated)

Tier-1 Required 6.00% 6.00%
Tier-1 Held 5.61% 6.13%
Tier-2 Required 4.00% 4.00%
Tier-2 Held 4.63% 3.93%
Total Required 10.00% 10.00%
Total Held 10.25% 10.06%

304
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
15.00 Share money deposits
Balance at the beginning of the year 6,799,953,800 3,799,953,800
Add: Made during the year - 3,000,000,000
6,799,953,800 6,799,953,800
16.00 Statutory reserve
Balance at the beginning of the year 3,251,663,997 3,107,821,413
Add: Made during the year ( 20%) 191,362,588 143,842,585
3,443,026,585 3,251,663,997

17.00 General reserve - -

18.00 Assets revaluation reserve

Asset revaluation reserve (Land) 18.01 504,862,808 504,862,808
Asset revaluation reserve (Building) 18.02 126,996,074 126,996,074
631,858,882 631,858,882
18.01 Asset revaluation reserve (Land)
Balance at the beginning of the year 504,862,808 504,862,808
Less: Adjustment during the year - -
504,862,808 504,862,808

18.02 Asset revaluation reserve (Building)

Balance at the beginning of the year 126,996,074 126,996,074
Less: Adjustment during the year - -
126,996,074 126,996,074

19.00 Revaluation reserve of securities

Amortization reserve of securities (HTM) 19.01 46,960,891 4,106,158
Revaluation reserve of securities (HFT) 19.02 1,415,987,718 2,213,951,786
1,462,948,609 2,218,057,944
19.01 Amortization reserve of securities (HTM)
Balance at the beginning of the year 4,106,158 3,376,058
Less: Adjustment during the year 42,854,733 730,100
46,960,891 4,106,158

19.02 Revaluation reserve of securities (HFT)

Balance at the beginning of the year 2,213,951,786 1,961,072,636
Add. Made during the year (797,964,068) 252,879,150
1,415,987,718 2,213,951,786

19.00(a) Consolidated Revaluation reserve of securities

Rupali Bank Limited 1,462,948,609 2,218,057,944
Rupali Investment Limited - -
Rupali Bank Securities Limited - -
1,462,948,609 2,218,057,944

Annual Report 2019 305

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
20.00 Retained earnings balance from statement of comprehensive Income
Balance at the beginning of the year 410,238,889 731,200,045
410,238,889 731,200,045
Less: Excess Profit charged now rectified (5,294,456) (47,021,171)
Add: Excess provision transfer to retained earnings - 142,285,145
Add: Excess provision of DDP transfer to retained earnings 5,000,000 40,000,000
Add: Excess provision of reconciled entries transfer to retained earnings - 20,000,000
Add: Wrongly posted now rectified 8,095,141 17,349,170
Less: Excess Profit charged by branches in 2017 & 2016 now rectified - (200,000)
418,039,574 903,613,189
Bonus share issue (376,516,930) (728,742,460)
Retained earning at beginning of the year (restated) 41,522,644 174,870,729
Profit after tax during the year 546,377,533 379,210,745
Add: Transferred from general reserve - -
Less: Transfer to statutory reserve (191,362,588) (143,842,585)
Retained earning at end of the year 396,537,589 410,238,889

20(a) Consolidated Retained earning balance from statement of comprehensive income

Balance at the beginning of the year 549,694,839 840,522,109
549,694,839 840,522,109
Less: Excess Profit charged by now rectified (5,294,456) (47,021,171)
Add: Excess provision of Expenses transfer to retained earnings - 142,285,145
Add: Excess provision of DDP transfer to retained earnings 5,000,000 40,000,000
Add: Excess provision of reconciled entries transfer to retained earnings - 20,000,000
Add: Wrongly posted now rectified 8,095,141 17,349,170
Less: Excess Profit charged by branches in 2017 & 2016 now rectified - (200,000)
557,495,524 1,012,935,253
Bonus share issue (376,516,930) (728,742,460)
Retained earning at the beginning of the year (restated) 180,978,594 284,192,793
Profit after tax during the year 569,581,369 409,344,631
Less: Transfer to statutory reserve 16.00 (191,362,588) (143,842,585)
559,197,375 549,694,839
Add: Last Year Excess provision transfer to retained earnings 807,320 -
Retained earning at end of the year 560,004,695 549,694,839

21.00 Off balance sheet exposure

Contingent liabilities
A. Acceptance and endorsements 4,172,947,036 2,092,015,464
B. Letter of guarantee 21.01 4,680,448,348 3,402,042,481
C. Irrevocable letter of credit 138,650,313,283 97,909,646,739
D. Bills for collection 2,784,328,736 1,112,011,993
E. Other contingent liability (D. C. Notes) 9,707,250 10,007,251
150,297,744,653 104,525,723,928

21.01 Bank liability for guarantee

The bank is contingently liable in respect of issuing guarantee in favor of the following:
Directors - -
Government 130,799,187 130,799,187
Bank and other financial Institution - -
Others 4,549,649,161 3,271,243,294
4,680,448,348 3,402,042,481

306
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
21.00(a) Consolidated Off balance sheet exposure - -
Rupali Bank Limited 21.00 150,297,744,653 104,525,723,928
Rupali Investment Limited - -
Rupali Bank Securities Limited - -
150,297,744,653 104,525,723,928
22.00 Comparative Income statement
Income:
Interest, discount and similar income 22.01 27,446,921,419 24,255,392,889
Fees, commission and brokerage 26.00 1,562,926,968 1,150,518,843
Other operating income 27.00 1,001,166,193 1,151,676,036
30,011,014,580 26,557,587,768
Interest expenses
Interest paid 22.02 18,704,562,076 15,300,572,191
Administrative expenses 22.03 5,573,000,306 5,387,935,353
Other operating expenses 34.00 3,142,994,292 2,176,869,652
Depreciation on banking assets including amortization 33.00 658,182,776 597,197,650
28,078,739,449 23,462,574,846
1,932,275,131 3,095,012,923
22.01 Interest, discount and similar income
Income from loans and advances 23.00 16,580,495,119 14,458,454,597
Income from balance with other Banks and FI 23.00 2,076,564,027 3,290,730,941
Income on money at call and short notice 23.00 33,516,944 39,396,945
Interest on treasury bills and bond 25.00 3,445,900,192 2,578,485,370
Interest on subordinate bond 2,601,601,163 1,891,796,584
Interest on others (Treasury) 1,639,607,256 1,478,606,065
Gain or (loss) on securities 25.00 1,032,906,493 478,511,725
Gain on Share 3,495,200 -
Interest Received from FC Lend to other Bank 23.00 32,835,025 39,410,662
27,446,921,419 24,255,392,889
22.02 Interest paid on deposits and borrowing etc.
Interest paid on deposits 24.01 17,761,875,048 14,735,103,838
Interest paid on borrowing 24.02 942,687,028 565,468,353
18,704,562,076 15,300,572,191
22.03 Administrative expenses
Salary and allowances 28 4,792,976,683 4,663,846,634
Rent, taxes, insurance, electricity etc. 29 581,871,586 525,596,410
Legal and professional expenses 22,435,796 24,384,977
Postage, stamp, telecommunication etc. 30 32,516,546 26,837,152
Stationery, printing, advertisement etc. 31 131,596,945 137,003,291
Managing Director's salary and fees 28.01 4,800,000 4,800,000
Directors' fees and expenses 28.02 2,576,000 2,472,389
Auditors' fees 32 4,226,750 2,994,500
5,573,000,306 5,387,935,353
23.00 Interest income
Income from loans and advances 16,580,495,119 14,458,454,597
Income on money at call and short notice 33,516,944 39,396,945
Income from balance with other banks and financial institutions 2,076,564,027 3,290,730,941
Interest Received from FC Lend to other Bank* 32,835,025 39,410,662
18,723,411,116 17,827,993,144
Recovery of written off loan amounting to Tk.5,81,00,000 included in Interest Income.

Annual Report 2019 307

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
23(a) Consolidated Interest income
Rupali Bank Limited 23.00 18,723,411,116 17,827,993,144
Rupali Investment Limited 14,646,185 18,886,999
Rupali Bank Securities Limited 38,273,122 26,349,387
18,776,330,423 17,873,229,530
24.00 Interest paid on deposits and borrowing etc.
Interest paid on deposits 24.01 17,761,875,048 14,735,103,838
Interest paid on borrowing 24.02 942,687,028 565,468,353
18,704,562,076 15,300,572,191
24.01 Interest paid on deposits
General 4,000 3,112
Fixed deposit 11,559,939,165 8,265,990,383
Saving deposit 2,012,650,612 2,102,948,866
Interest Paid on RMBSC 22,248,521 -
Special notice deposits (SND) 1,595,412,006 1,336,628,216
Rupali deposit scheme (all scheme) 2,043,300,353 2,765,206,405
Interest Paid on Retired Employee 222,472,625 -
General provident fund 304,978,677 263,460,238
Staff security deposit 869,089 866,617
17,761,875,048 14,735,103,838
24.02 Interest paid on borrowings
Borrowing from other banks 46,724,167 -
Borrowing from Bangladesh Bank 32,615,663 90,556,398
Interest paid on IBR 153,905,797 27,771,327
Interest paid on Money At call & short notice 186,736,943 122,854,945
Interest Paid on FC Borrowing 1,937,335 9,999,108
Interest Paid on Sub ordinated Bond 520,767,123 314,286,575
942,687,028 565,468,353
24(a) Consolidated Interest paid on deposits and borrowing etc.
Rupali Bank Limited 24.00 18,704,562,076 15,300,572,191
Rupali Investment Limited - -
Rupali Bank Securities Limited - -
18,704,562,076 15,300,572,191
25.00 Investment income
Interest on treasury bond 3,349,621,356 2,517,205,464
Interest on treasury bills 6,686,900 13,004,600
Interest on subordinate bond 2,601,601,163 1,891,796,584
Income from redeemable bond 29,686,500 1,946,000
Interest on commercial paper 59,905,436 46,329,306
Interest on corporate bond 137,739,693 -
Gain on Share 3,495,200 -
Bangladesh Bank Bill - 49,475,867
Gain or (loss) on securities 1,032,906,493 478,511,725
Amortization Income on T. Bill 901,764,028 437,803,932
Amortization Income on T. BOND 20,500 -
Interest income from Inter Bank Repo 7,768,046 9,104,722
Income from Others Investment - 7,675,400
8,131,195,314 5,452,853,601

308
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018

Dividend income
Dividend on shares (preference shares) 433,333,336 650,000,004
Cash Dividend 158,981,654 324,546,140
592,314,990 974,546,144
8,723,510,304 6,427,399,745

25(a) Consolidated Investment income

Rupali Bank Limited 25.00 8,723,510,304 6,427,399,745
Rupali Investment Limited 36,266,158 29,206,715
Rupali Bank Securities Limited 15,306,628 23,582,495
8,775,083,090 6,480,188,955

26.00 Commission, exchange, brokerage etc.

Commission Local 53,138,458 54,288,995
Commission Income (Dealing) 3,185,850 4,723,143
Exchange Local 624,509,870 598,174,609
Exchange Gain 552,486,805 372,228,946
LC Commission 283,280,981 96,713,936
Profit from Speculation Deal 46,325,005 24,389,214
1,562,926,968 1,150,518,843

26(a) Consolidated Commission, exchange, brokerage etc.

Rupali Bank Limited 26.00 1,562,926,968 1,150,518,843
Rupali Investment Limited 1,396,386 3,347,110
Rupali Bank Securities Limited 9,540,036 10,076,013
1,573,863,390 1,163,941,966

27.00 Other operating income

Rent (general) 2,466,466 976,408
Rent from properties - 709,286
Rent from locker 1,902,553 2,095,358
Gain on sale of assets 3,244 2,033,785
Service charge (agri. credit A/C) 271,728,753 507,391,031
Income from Mobile Banking* 295,655 305,070
Miscellaneous 724,769,521 638,165,099
1,001,166,193 1,151,676,036

27(a) Consolidated Other operating income

Rupali Bank Limited 27.00 1,001,166,193 1,151,676,036
Rupali Investment Limited 5,058,443 8,380,000
Rupali Bank Securities Limited - -
1,006,224,636 1,160,056,036

Annual Report 2019 309

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
28.00 Salary and allowances
Pay (officers) 1,609,091,472 1,634,463,560
Pay (other employees) 381,854,856 291,732,341
Personal pay 20,894,206 20,342,900
Evening banking allowance 555,990 566,599
Conveyance allowance 2,885,212 2,945,066
Overtime 40,690,750 38,336,570
Special allowance 1,098,090 1,514,928
Dearness allowance 572,442 1,649,751
Children education allowance 23,426,344 21,115,951
Bank contribution to provident fund (gratuity) 66,267,232 88,387,651
Bank contribution to pension fund 723,616,755 695,982,999
House rent allowance 834,473,258 757,113,719
House Maintence Allowance 594,479 362,902
Utility Allowance 843,889 536,184
Medical allowance 143,910,276 169,149,180
Medical charges 176,450 110,525
Bonus (festival) 330,749,914 355,759,471
Performance bonus /exgratia 434,700,000 450,000,000
Extra duty charge 1,353,544 1,458,161
Compensation allowance - 300
Executive car allowance 128,350,216 92,058,435
Entertainment allowance 3,715,669 3,085,073
Bangla nababorsho allowance 35,408,150 33,919,818
Qualification allowance 12,547,488 8,054,550
4,797,776,683 4,668,646,634
Less: Honorium for managing director & CEO 28.01 4,800,000 4,800,000
4,792,976,683 4,663,846,634

28.01 Managing Director's salary and fees

Basic 3,300,000 3,300,000
Others 1,500,000 1,500,000
4,800,000 4,800,000

28.00(a) Consolidated Salary and allowances

Rupali Bank Limited 28.00 4,792,976,683 4,663,846,634
Rupali Investment Limited 9,030,221 10,782,660
Rupali Bank Securities Limited 15,501,861 15,744,726
4,817,508,765 4,690,374,020

28.01(a) Consolidated Managing Director's salary and fees

Rupali Bank Limited 28.01 4,800,000 4,800,000
Rupali Investment Limited - -
Rupali Bank Securities Limited - -
4,800,000 4,800,000

310
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
28.02 Directors' fees
Board meeting 1,886,000 1,616,389
Audit committee meeting 377,200 344,000
Risk management committee meeting 220,800 432,000
Executive committee meeting 92,000 80,000
2,576,000 2,472,389

28.02(a) Consolidated Directors' fees

Rupali Bank Limited 28.02 2,576,000 2,472,389
Rupali Investment Limited 835,000 754,400
Rupali Bank Securities Limited 487,200 478,400
3,898,200 3,705,189

29.00 Rent, taxes, insurance , electricity, etc.

Rent 317,795,008 284,079,710
Rates and taxes 40,454,360 39,033,979
Premium (deposit insurance scheme) 149,263,981 133,191,289
Insurance 4,911,852 4,890,820
Electricity 69,446,384 64,400,611
581,871,586 525,596,410

29(a) Consolidated Rent, taxes, insurance , electricity, etc.

Rupali Bank Limited 29.00 581,871,586 525,596,410
Rupali Investment Limited 5,419,066 5,680,037
Rupali Bank Securities Limited 4,067,002 6,091,673
591,357,654 537,368,120

30.00 Postage, stamp, telegram and telephone

Postage 4,551,937 4,191,955
Telegram 2,274,356 2,075,294
Telephone 11,001,429 10,106,252
Internet expense 14,688,824 10,463,650
32,516,546 26,837,152

30(a) Consolidated Postage, stamp, telegram and telephone

Rupali Bank Limited 30.00 32,516,546 26,837,152
Rupali Investment Limited 215,949 170,690
Rupali Bank Securities Limited 662,640 570,514
33,395,135 27,578,356

31.00 Stationary printing and advertisement

Stationary and printing 66,914,444 63,052,478
Advertisement and publicity 64,682,501 73,950,813
131,596,945 137,003,291

31a) Consolidated Stationary printing and advertisement

Rupali Bank Limited 31.00 131,596,945 137,003,291
Rupali Investment Limited 79,996 86,726
Rupali Bank Securities Limited 93,972 133,557
131,770,913 137,223,574

Annual Report 2019 311

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
32.00 Audit fees
Audit fee for the year including VAT (statutory audit) 2,500,000 2,500,000
Audit consultancy and others 1,726,750 494,500
4,226,750 2,994,500

32(a) Consolidated Audit fees

Rupali Bank Limited 32.00 4,226,750 2,994,500
Rupali Investment Limited 80,500 57,500
Rupali Bank Securities Limited 57,500 80,500
4,364,750 3,132,500

33.00 Depreciation and repairs of bank's property

Depreciation of bank's property
Building 83,181,789 79,412,105
Furniture and fixture 76,874,017 43,927,372
Mechanical appliance 77,675,394 58,450,780
Motor vehicle 36,612,852 36,742,498
Computer 161,325,769 118,281,734
Interior Decoration & Renovation 78,864 -
Software 9,122,221 4,418,503
444,870,906 341,232,992
Repairs of bank's property
Repairs to premises (Building) 6,807,343 645,072
Repairs and maintenance (Furniture, Machinery etc.) 18,257,391 19,765,102
Repairs and maintenance (Vehicles) 16,532,417 16,735,737
Computer service charges 171,714,719 218,818,746
213,311,870 255,964,658
658,182,776 597,197,650

33(a) Consolidated Depreciation and repairs of property

Rupali Bank Limited 33.00 658,182,776 597,197,650
Rupali Investment Limited 1,165,395 1,112,566
Rupali Bank Securities Limited 2,006,243 1,715,891
661,354,414 600,026,107

34.00 Other expenses

Washing charge 1,296,165 1,394,318
Welfare and recreation 284,013,609 270,573,045
Liveries and uniforms 6,920,202 7,233,062
Conveyance 57,308,897 54,119,563
Petrol, oil and lubricants (POL) 58,042,659 53,872,523
Traveling 70,732,438 66,474,500
Remittance charges 34,557,279 28,334,380
Honorarium 9,176,135 5,895,745
Books and periodicals 868,908 1,400,417
Carriage and cartage 1,183,342 1,110,245
Entertainment 44,070,974 37,347,241
Business development 62,710,437 24,361,787
Donation 44,698,170 32,628,466

312
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
CSR 14,493,785 13,090,000
Training institute 22,720,108 11,558,284
Deployment cost of ansar 213,218,018 191,848,963
Loss on revaluation reserve for securities 1,354,465,365 849,924,275
Amortization on securities 30,522,996 17,250,280
ATM service 1,232,023 690,064
Mobile banking 413,846,657 295,218,925
Risk fund 34,600,000 19,100,000
Computer printing accessories 14,301,190 11,511,135
NID Verification 453,680 342,429
Remission on SHBL of Death Employee 5,756,214 14,999,943
Listing Fee 2,738,517 2,386,228
CDBL Charge - 415,383
Exchange Loss 122,091,110 71,960,407
Miscellaneous 236,975,414 91,828,042
3,142,994,292 2,176,869,652

34(a) Consolidated Other expenses

Rupali Bank Limited 34.00 3,142,994,292 2,176,869,652
Rupali Investment Limited 4,019,751 3,646,551
Rupali Bank Securities Limited 4,770,010 4,165,146
3,151,784,053 2,184,681,349

35.00 Provision for loans and advances

Provision for unclassified loans and advances ( General) 815,300,000 91,300,000
Provision for classified loans and advances ( Specific) 15,429,505 1,490,000,000
830,729,505 1,581,300,000

35(a) Consolidated Provision for loans and advances

Rupali Bank Limited 830,729,505 1,581,300,000
Rupali Investment Limited 5,000,000 3,190,693
Rupali Bank Securities Limited ** 3,051,434 259,774
838,780,939 1,584,750,467

** Preivious year balance of RBSL Transfer from note no 38.a Others Provision amount in Tk. 2,59,774.

36.00 Provision for off balance sheet exposure

Opening Balance - -
Made during the year 105,000,000 -
105,000,000 -

36(a) Consolidated Provision for off balance sheet exposure

Rupali Bank Limited 105,000,000 -
Rupali Investment Limited - -
Rupali Bank Securities Limited - -
105,000,000 -

37.00 Provision for diminution in value of investment

Provision for Bangladesh Industrial Finance Co. Ltd. - 500,000,000
Provision for share - 90,000,000
Provision for debenture - 13,500,000
- 603,500,000

Annual Report 2019 313

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
37(a) Consolidated Provision for investment
Rupali Bank Limited - 603,500,000
Rupali Investment Limited 10,000,000 11,400,000
Rupali Bank Securities Limited 11,200,000 8,500,000
21,200,000 623,400,000
38.00 Other provisions
Provision for unforeseen losses fund (protested bill) 6,532,687 41,000,000
Provision for Inter branch reconciled entries 33,200,000 -
Summit S Bank (Ex Arif Habib Bank) - 10,000,000
Provision for employee's pension fund - 120,000,000
Provision for gratuity - 20,000,000
39,732,687 191,000,000
38(a) Consolidated other Provision
Rupali Bank Limited 39,732,687 191,000,000
Rupali Investment Limited - -
Rupali Bank Securities Limited - -
39,732,687 191,000,000
Provisions
Provision for loans and advances 35.00 830,729,505 1,581,300,000
Provision for off balance sheet item 105,000,000 -
Provision for diminution in value of investment 21,200,000 623,400,000
Other provisions ** 39,732,687 191,000,000
996,662,192 2,395,700,000

** Previous year balance of others provision Transfer to note no 35.a amount in Tk. 2,59,774.

39.00 Provision for income tax

Current tax 39.01 329,705,076 160,349,134
Deferred tax liabilities / (assets) 39.02 80,730,329 179,653,044
410,435,406 340,002,178

39.01 Provision for current tax

Provision for current tax for current year 13.04 329,705,076 160,349,134
Provision for current tax for previous years - -
329,705,076 160,349,134

39.02 Deferred tax liabilities/(assets)

Deferred tax liabilities/(assets) recognized during the period 39.02.01 (8,750,675) (9,079,240)
Deferred tax assets recognized during the period 39.02..02 (89,481,005) (188,732,284)
80,730,329 179,653,044

39.02.01 Deferred tax liabilities recognized during the period

Taxable temporary differences
Fixed assets
Accounting base 4,316,402,829 4,219,995,831
Tax base (2,949,403,747) (2,829,661,615)
1,366,999,082 1,390,334,216
Corporate tax rate 37.50% 37.50%
Deferred tax liabilities: at the end of the period 512,624,656 521,375,331
Less: At the beginning of the period 521,375,331 530,454,571
Deferred tax liabilities recognized during the period 13.05 (8,750,675) (9,079,240)

314
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
39.02.02 Deferred tax assets recognized during the period
Deductible temporary differences
Provision for gratuity
Accounting base 49,874,953 82,886,553
Tax base - -
49,874,953 82,886,553
Provision for pension
Accounting base 1,702,513,836 1,908,118,249
Tax base - -
1,702,513,836 1,908,118,249
1,752,388,789 1,991,004,802
Corporate tax rate 37.50% 37.50%
Deferred tax assets: at the end of the period 657,145,796 746,626,801
Less: At the beginning of the Period 746,626,801 935,359,085
Deferred tax assets recognized during the period (89,481,005) (188,732,284)

39(a) Consolidated Provision for income tax

Rupali Bank Limited
Current tax 329,705,076 160,349,134
Deferred tax liabilities / (assets) 80,730,329 179,653,044
410,435,406 340,002,178
Rupali Investment Limited
Current tax 8,464,786 8,014,751
Deferred tax liabilities / (assets) (55,271) (134,540)
8,409,515 7,880,211

Rupali Bank Securities Limited

Current tax 11,167,280 7,229,277
Deferred tax liabilities / (assets) (74,077) (73,184)
11,093,203 7,156,093
429,938,124 355,038,482

39.01(a) Consolidated Provision for current tax

Rupali Bank Limited 329,705,076 160,349,134
Rupali Investment Limited 8,464,786 8,014,751
Rupali Bank Securities Limited 11,167,280 7,229,277
349,337,142 175,593,162

39.02(a) Consolidated Provision for Deferred tax liabilities/(assets)

Rupali Bank Limited 80,730,329 179,653,044
Rupali Investment Limited (unrealized loss) (55,271) (134,540)
Rupali Bank Securities Limited (74,077) (73,184)
80,600,981 179,445,320

40.00 Earning per share (EPS)

Net Profit during the year (numerator) 546,377,533 379,210,745
Total number of shares outstanding during the year * 414,168,632 414,168,632
Basic earning per share (EPS) restated ( face valueTk, 10.00 per share) 1.32 0.92

* In 2018 total number of outstanding Shares were 376,55,16,939

Annual Report 2019 315

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
40(a) Consolidated earning per share (CEPS)
Net Profit during the year (numerator) 569,581,369 409,344,631
Total number of shares outstanding during the year * 414,168,632 414,168,632
Basic earning per share (EPS) restated ( face valueTk, 10.00 per share) 1.38 0.99

* In 2018 total number of outstanding Shares were 376,55,16,939

41.00 Interest receipts in cash

Interest income 18,668,412,573 19,648,695,239
Investment Income 8,039,486,400 4,681,252,819
26,707,898,973 24,329,948,058

41(a) Consolidated Interest receipts in cash

Rupali Bank Limited 26,707,898,973 24,329,948,058
Rupali Investment Limited 5,515,807 6,890,939
Rupali Bank Securities Limited 6,780,998 2,768,379
26,720,195,778 24,339,607,376

42.00 Interest payments

Interest Paid on Deposits (17,761,875,048) (14,735,103,838)
Borrowings etc. (942,687,028) (565,468,353)
Interest payable 1,047,080,041 (1,681,820,920)
(17,657,482,035) (16,982,393,111)

42(a) Consolidated Interest payments

Rupali Bank Limited (17,657,482,035) (16,982,393,111)
Rupali Investment Limited - -
Rupali Bank Securities Limited - -
(17,657,482,035) (16,982,393,111)

43.00 Increase / (Decrease) of Other Assets

Opening other Assets
Branch adjustment account 2,475,156,763 920,804,407
Security deposits 1,809,869 961,850
Suspense accounts 5,168,002,956 2,590,258,271
Others 1,493,005,088 1,631,146,360
9,137,974,677 5,143,170,888

Closing other Assets

Branch adjustment account 3,375,172,405 2,475,156,763
Security deposits 1,994,189 1,809,869
Suspense accounts 3,847,429,006 5,168,002,956
Others 1,572,971,114 1,493,005,088
8,797,566,715 9,137,974,677
340,407,962 (3,994,803,789)

43(a) Consolidated other Assets

Rupali Bank Limited 340,407,962 (3,994,803,789)
Rupali Investment Limited (3,888,466) -
Rupali Bank Securities Limited (20,000,000) (50,000,000)
316,519,496 (4,044,803,789)

316
 Rupali Bank Limited

NOTES TO THE FINANCIAL STATEMENTS

as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
2019 2018
44.00 Increase / (Decrease) of Other Liabilities
Opening other Liabilities
Interest Suspense's 3,871,561,210 3,197,295,641
Revaluation Reserve for Securities (HTM & HFT) 2,218,057,944 1,964,448,694
Provision 20,997,884,984 19,288,167,649
Others 2,076,678,093 90,927,110
29,164,182,231 24,540,839,094
Closing other Liabilities
Interest Suspense's 5,506,199,190 3,871,561,210
Revaluation Reserve for Securities (HTM & HFT) 1,462,948,609 2,218,057,944
Provision 21,719,188,948 20,997,884,984
Others 792,212,952 2,076,678,093
29,480,549,699 29,164,182,231
316,367,468 4,623,343,137

44(a) Consolidated other Liabilities

Rupali Bank Limited 316,367,468 4,623,343,137
Rupali Investment Limited -
Rupali Bank Securities Limited (1,622,773) (1,655,608)
314,744,695 4,621,687,529

45.00 Closing cash and cash equivalent

Cash in hand 3,171,643,770 2,327,606,688
Balance with Bangladesh Bank and Sonali Bank 21,225,848,836 21,218,964,074
Balance with other bank 23,497,413,944 65,331,294,542
Money at call and short notice - 5,240,000,000
Closing cash and cash equivalent 47,894,906,550 94,117,865,304

45(a) Consolidated Closing cash and cash equivalent

Rupali Bank Limited 47,894,906,550 94,117,865,304
Rupali Investment Limited 68,545,986 202,429,892
Rupali Bank Securities Limited 73,328,032 74,244,376
48,036,780,568 94,394,539,572

46.00 Events after reporting period

The board of Director in its 1102 th meeting dated 28 June, 2020 decided to recommend payment of 5% stock dividend for the year
2019. The total amount of dividend is Tk.20.71 crore only.

Annual Report 2019 317

RUPALI BANK LIMITED
HIGHLIGHTS ON THE OVERALL ACTIVITIES OF THE BANK
as at and for the year ended 31 December 2019

Figure in Crore (Except %)

SL.
Particulars 2019 2018
NO
Taka Taka
1 Authorized Capital 700.00 700.00
2 Paid up capital 414.17 376.52
3 Total capital (Tier-I + Tier-II) 2565.14 2214.95
4 Required capital (Under BASEL-III) 2481.76 2210.47
5 Surplus / (shortage) of capital 83.37 4.48
6 Capital to Risk Weighted Assets Ratio ( CRAR) 10.34% 10.02%
7 Total assets 49724.93 46328.98
8 Total deposits 41462.43 38954.95
9 Total loans and advances 30672.40 24749.06
10 Total contingent liabilities and commitments 15029.77 10452.57
11 Credit deposit ratio 73.98% 63.53%
12 Total classified loans 4614.57 4428.85
13 Export 2,689.27 2,600.20
14 Import 15,401.83 11,402.15
15 Foreign remittance 2,256.92 1,717.32
16 Income from investment 872.35 642.74
17 Operating profit 193.23 309.50
18 Profit after tax and provision 54.64 37.92
19 Percentage of classified loans against total loans and advances 16.15% 19.21%
20 Provision kept against classified loans 1004.33 1251.71
21 Provision kept against loans and advances(G+S) including OBS. Item 1571.56 1478.05
22 Provision Surplus / (deficit) against loans and advances (1,168.47) (1,136.12)
23 Cost of fund % 6.81% 6.82%
24 Cost of deposit % 4.66% 4.69%
25 Weighted average rate of deposit 4.54% 4.44%
26 Weighted average rate of advance 8.10% 8.06%
27 Spread 3.56% 3.62%
28 Earning assets 37,817.33 35,273.85
29 Non earning assets 11,907.60 11,055.13
30 Return on investment (ROI) 7.98% 7.43%
31 Return on assets (ROA) after tax 0.03% 0.02%
32 Return on equity (ROE) 0.80% 0.62%
33 Earning Per Share (EPS) 1.32 0.92
34 Net operating income per share 4.67 8.22
35 Net income per share (after tax) 1.32 1.01
36 Price earning ratio (Times) 27.14 39.10
37 Market price per share 30.50 35.80
38 Income from Investment 872.35 642.74
39 Leverage Ratio 2.25% 2.89%
40 Liquidity Coverage Ratio (LCR) 154.52% 423.22%
41 Net Stable Funding Ratio (NSFR) 95.53% 102.24%

318
 RUPALI BANK LIMITED
BALANCE WITH OTHER BANK -OUTSIDE BANGLADESH (NOSTRO ACCOUNT)
As at 31 December 2019 Schedule-A

2019 2018
Currency Currency
Name of the Bank Amount Conversion Amount Conversion
Name Name
in Foreign rate per unit Amount in BDT in Foreign rate per unit Amount in BDT
Currency F.C. Currency F.C.
NOSTRO Accounts Debit
Foreign Bank A/c (WES)
Bank of America NY /Bank WES USD USD
BCCI " 15,276.43 42.00 641,610.20 " 15276.44 42.0000 641,610.20
HSBC London GBP GBP
Commerz " 1,420,540.15 111.16 157,912,926.36 " 276,740.81 104.63 28,955,851.22
Sonali London " 5.47 117.90 644.92 " 5.47 117.9013 644.92
Sub Total 158,555,181.48 29,598,106.34

Regular
Barclays Bank PLC London (Pound Sterling) Pound Pound
HSBC London Pound Sterling) " "
National WMB London Pound Sterling) " "
Commerz " "
Sonali Bank London " "
Total - -

Standard Chartered Bank, Kolkata (ACU) ACU 587,400.24 85.81 50,401,992.83 ACU 560,996 83.5750 46,885,262
Sonali Bank ,Kolkata (ACU) " 126,076.96 84.04 10,595,954.76 " 494,456 89.6423 44,324,192
Bank of Bhutan " 70,265.69 83.66 5,878,409.96 "
AB Bank, Mumbai, India (ACU) " 1,321,796.70 84.58 111,791,408.04 " 1,079,605 83.5756 90,228,650
United Bank of India " 375,712.90 84.57 31,775,158.25 " 237,790 83.5718 19,872,539
Summit Bank " 12,209.74 62.88 767,721.27 " 78,201 83.5750 6,535,679
Peoples Bank Comloboo (ACU) " 9,686.86 86.53 838,155.67 " 9,687 85.5250 828,469

Annual Report 2019

Rupali Bank Limited

Total 212,048,800.78 208,674,791.05

319
 RUPALI BANK LIMITED

320
BALANCE WITH OTHER BANK -OUTSIDE BANGLADESH (NOSTRO ACCOUNT)
As at 31 December 2019

2019 2018
Currency Currency
Name of the Bank Amount Conversion Amount Conversion
Name Name
in Foreign rate per unit Amount in BDT in Foreign rate per unit Amount in BDT
Currency F.C. Currency F.C.
Sonali Bank ,Kolkata (ACU EURO) ACU EURO 5,983.18 101.21 605,568.03 ACU EURO 5983.18 96.06901 574798.2
Commerce Bank AG, Frankfort Germany (EURO) EURO EURO 769824.39 77.7627 59863620.03
BHF Bank AG, Frankfort Germany (EURO) " 1,433.93 119,694.85 " 33.29 563.2295 18749.91
Hypoverin " "
ING Bank, Belgium (EURO) " "
Sonali Bank London " 16,223.48 1,457,497.84 " 16298.48 89.85156 1464443.84
S.C.B Germany " "
Total 1,577,192.69 61,346,813.78

Bank Al Zajirah SR 125,924.39 22.69 2,856,960.22 SR 111191.89 22.2751 2476810.5

Danske Bank DKK 113,372.37 13.39 1,518,411.09 DKK 642741.06 13.64902 8772787.26
Bank of Novaskosia Canada CAD CAD
West pack Banking Corporation, Australia AUD AUD - -
Commerz AUD 494,892.34 59.81 29,600,422.07 AUD 116551.97 59.15323 6894425.4
Commerz , Singapore SGD SGD 69611.74 61.18202 4258986.95
Commerz (CHF) CHF 20,130.36 87.81 1,767,676.76 CHF 26123.15 84.32389 2202805.58
Union Bank Swizerland CHF CHF
Total 35,743,470.14 24,605,815.69
 RUPALI BANK LIMITED
BALANCE WITH OTHER BANK -OUTSIDE BANGLADESH (NOSTRO ACCOUNT)
As at 31 December 2019

2019 2018
Currency Currency
Name of the Bank Amount Conversion Amount Conversion
Name Name
in Foreign rate per unit Amount in BDT in Foreign rate per unit Amount in BDT
Currency F.C. Currency F.C.
Sonali Bank London USD 0.84 841,796.04 707,108.67 USD 0.84 841796 707108.67
S.C.B NY " 1,909,976.22 84.6108 161,604,545.34 " 5712093.68 84.95222 485255025.5
Commerz " " 1921830.16 83.42865 160335695.3
ICICI " 676,170.33 84.0064 56,802,635.06 " 516664.23 83.575 43180211.41
HSBC NY USA " "
Masrek Bank PSC NY " 22,085,069.19 88.3654 1,951,556,023 " 3278169.99 90.43127 296449069.7
Total 2,170,670,312 985,927,110.44

Standard Chartered Bank,Tokyo JPY 54,676,504.83 42,822,500 JPY - - -

Bank of Tokyo Mitsubishi, Japan (JPY) " 16,903,896.00 14,890,919 " - - -
Commerz " " 31,532,332 0.65186 20,554,606.83
Total 57,713,419 20,554,606.83

G.Total 2,636,913,944 1,331,282,042.33

NOSTRO Accounts Credit

Bank of American NY USA USD USD
HSBC NY USA " "
JP Morgan Chase NY " "
ICICI " "
Sonali Bank London " "
Commerz " 2,503,853.79 84.5750 211,763,388.35 "
Mashreq Bank PSC NY " "

Annual Report 2019

Standard Chartered Bank, NY " "
Rupali Bank Limited

Total 211,763,388.35 -

321
 RUPALI BANK LIMITED

322
BALANCE WITH OTHER BANK -OUTSIDE BANGLADESH (NOSTRO ACCOUNT)
As at 31 December 2019

2019 2018
Currency Currency
Name of the Bank Amount Conversion Amount Conversion
Name Name
in Foreign rate per unit Amount in BDT in Foreign rate per unit Amount in BDT
Currency F.C. Currency F.C.
Commerz , Singapore SGD 5,796.66 63.37 367,314.53 SGD
Total 367,314.53 -

Commerz , Singapore GBP GBP

Sonali Bank London GBP GBP
Total -

Hypo Verin EURO EURO

Commerz 1,917,320.77 109.80 210,517,530.76
Standard Chartered Bank,Germany 43,311.46 184.82 8,004,805.19 26,722.31 271.77 7,262,199.16
ING Belgium ' '
Total 218,522,335.95 7,262,199.16

Standard Chartered Bank,Tokyo JPY JPY 112896987 0.755834 85331434.03

Bank of Tokyo Mitsubishi, Japan (JPY) " " 2136363 0.800904 1711022.7
Commerz " 13,400,833.92 0.79 10,561,210.02 "
Total 10,561,210.02 87,042,456.73

G.Total 441,214,248.85 94,304,655.89

 RUPALI BANK LIMITED
INVESTMENT AGAINST GOVERNMENT TREASURY BONDS (HTM)
As at 31 December 2019 Schedule-“B”

Sl. Amount of Value as on . Coupon

Nature of Investment Status Increase / Decrease Present Value Date of Issue Date of Maturity
No. Investment 01.01.2019 Rate %
1 2 years Treasury Bond HTM 2,002,622,080 2,001,687,200 (1,309,400) 2,000,377,800 5.3700% 4-Apr-18 4-Apr-20
2 2 years Treasury Bond HTM 1,255,200,000 1,255,200,000 - 1,255,200,000 5.4400% 4-Apr-18 4-Apr-20
3 2 years Treasury Bond HTM 505,587,500 503,888,000 (3,063,800) 500,824,200 4.7900% 4-Apr-18 4-Apr-20
4 2 years Treasury Bond HTM 1,001,129,000 1,000,860,800 (557,100) 1,000,303,700 4.9800% 4-Jul-18 4-Jul-20
5 2 years Treasury Bond HTM 102,709,226 101,530,200 (999,100) 100,531,100 3.9800% 4-Jul-18 4-Jul-20
6 2 years Treasury Bond HTM 102,603,126 101,442,300 (941,700) 100,500,600 4.0400% 4-Jul-18 4-Jul-20
7 2 years Treasury Bond HTM 102,532,426 101,383,700 (903,500) 100,480,200 4.0800% 4-Jul-18 4-Jul-20
8 2 years Treasury Bond HTM 98,702,200 98,748,000 663,800 99,411,800 4.4000% 7-Nov-18 7-Nov-20
9 2 years Treasury Bond HTM 980,575,400 980,575,400 10,110,000 990,685,400 4.8100% 7-Nov-18 7-Nov-20
10 2 years Treasury Bond HTM 1,605,403,196 1,605,403,196 (2,135,296) 1,603,267,900 5.2200% 6-Mar-19 6-Mar-21
11 2 years Treasury Bond HTM 1,990,190,500 1,990,190,500 3,461,300 1,993,651,800 5.6600% 6-Mar-19 6-Mar-21
12 2 years Treasury Bond HTM 966,791,000 966,791,000 10,083,000 976,874,000 7.4700% 6-Mar-19 6-Mar-21
13 2 years Treasury Bond HTM 2,103,126,980 2,103,126,980 (283,680) 2,102,843,300 7.9100% 3-Jul-19 3-Jul-21
14 2 years Treasury Bond HTM 1,001,621,020 1,001,621,020 (245,720) 1,001,375,300 8.6400% 4-Sep-19 4-Sep-21
15 2 years Treasury Bond HTM 2,022,330,000 2,022,330,000 (1,778,400) 2,020,551,600 8.0500% 4-Sep-19 4-Sep-21
Total - A 15,841,123,654 15,834,778,296 12,100,404 15,846,878,700

1 5 years BGTB Treasury Bond HTM 2,809,170,000 2,808,482,100 (2,304,600) 2,806,177,500 5.8900% 14-Mar-18 9-Mar-21
2 5 years BGTB Treasury Bond HTM 1,409,181,200 1,407,027,500 (3,100,100) 1,403,927,400 5.6900% 11-Apr-18 9-Mar-21
3 5 years BGTB Treasury Bond HTM 1,010,736,000 1,008,748,200 (3,690,000) 1,005,058,200 5.8300% 13-Apr-16 13-Apr-21
4 5 years BGTB Treasury Bond HTM 503,553,000 502,892,300 (1,227,300) 501,665,000 5.9700% 13-Apr-16 13-Apr-21
5 5 years BGTB Treasury Bond HTM 502,132,500 501,731,900 (744,700) 500,987,200 6.0800% 13-Apr-16 13-Apr-21
6 5 years BGTB Treasury Bond HTM 1,000,400,010 76,679,500 923,716,900 1,000,396,400 8.9599% 11-Dec-19 11-Dec-24
7 5 years BGTB Treasury Bond HTM 1,959,564,000 1,964,170,800 1,964,170,800 6.8967% 13-Mar-19 13-Mar-24
8 5 years BGTB Treasury Bond HTM 2,906,425,000 2,916,790,200 2,916,790,200 7.2133% 13-Mar-19 13-Mar-24
9 5 years BGTB Treasury Bond HTM 1,000,809,020 1,000,734,500 1,000,734,500 8.0800% 12-Jun-19 12-Jun-24
10 5 years BGTB Treasury Bond HTM 3,011,264,950 3,010,533,400 3,010,533,400 8.3475% 10-Jul-19 10-Jul-24
11 5 years BGTB Treasury Bond HTM 449,508,500 - 452,333,600 452,333,600 9.2300% 13-Sep-19 13-Mar-24

Annual Report 2019

Rupali Bank Limited

12 5 years BGTB Treasury Bond HTM 101,037,067 101,063,700 101,063,700 8.9700% 12-Jun-19 12-Jun-24
Total -B 16,663,781,247 6,305,561,500 10,358,276,400 16,663,837,900

323
 RUPALI BANK LIMITED

324
INVESTMENT AGAINST GOVERNMENT TREASURY BONDS (HTM)
As at 31 December 2019

Sl. Amount of Value as on . Coupon

Nature of Investment Status Increase / Decrease Present Value Date of Issue Date of Maturity
No. Investment 01.01.2019 Rate %

7 years Special Treasury Bond HTM 3,517,200,000 3,517,200,000 - 3,517,200,000 5.0000% 30-Sep-19 30-Sep-26
7 years Special Treasury Bond HTM 1,354,500,000 1,354,500,000 - 1,354,500,000 0.0000% 30-Sep-19 30-Sep-26
Total -C 31,964,489,794 11,253,941,000 20,727,619,500 4,871,700,000

1 10 years BGTB Treasury Bond HTM 112,900,000 112,900,000 - 112,900,000 11.75% 22-Aug-12 22-Aug-22
2 10 years BGTB Treasury Bond HTM 161,300,000 161,300,000 146,599,900 307,899,900 11.75% 12-Sep-12 12-Sep-22
3 10 years BGTB Treasury Bond HTM 143,200,000 143,200,000 - 143,200,000 11.80% 10-Oct-12 10-Oct-22
4 10 years BGTB Treasury Bond HTM 168,509,222 168,688,100 42,600 168,730,700 11.79% 14-Nov-12 14-Nov-22
5 10 years BGTB Treasury Bond HTM 193,288,225 193,338,300 12,100 193,350,400 11.80% 12-Dec-12 12-Dec-22
6 10 years BGTB Treasury Bond HTM 106,900,000 106,900,000 - 106,900,000 11.90% 9-Jan-13 9-Jan-23
7 10 years BGTB Treasury Bond HTM 92,200,000 92,200,000 - 92,200,000 12.00% 13-Feb-13 13-Feb-23
8 10 years BGTB Treasury Bond HTM 105,537,955 105,687,500 37,700 105,725,200 12.10% 10-Apr-13 10-Apr-23
9 10 years BGTB Treasury Bond HTM 124,912,089 125,131,000 55,900 125,186,900 12.10% 13-Mar-13 13-Mar-23
10 10 years BGTB Treasury Bond HTM 133,660,531 133,887,400 58,500 133,945,900 12.10% 13-Mar-13 13-Mar-23
11 10 years BGTB Treasury Bond HTM 76,968,686 76,852,900 (30,300) 76,822,600 12.22% 17-Jul-13 17-Jul-23
12 10 years BGTB Treasury Bond HTM 74,782,566 74,878,000 25,300 74,903,300 12.22% 17-Jul-13 17-Jul-23
13 10 years BGTB Treasury Bond HTM 87,866,604 87,949,100 22,100 87,971,200 12.22% 17-Jul-13 17-Jul-23
14 10 years BGTB Treasury Bond HTM 72,522,414 72,587,300 17,600 72,604,900 12.22% 17-Jul-13 17-Jul-23
15 10 years BGTB Treasury Bond HTM 65,037,000 65,077,800 11,200 65,089,000 12.16% 20-Nov-13 20-Nov-23
16 10 years BGTB Treasury Bond HTM 1,000,000,000 1,000,000,000 - 1,000,000,000 12.16% 20-Nov-13 20-Nov-23
17 10 years BGTB Treasury Bond HTM 317,603,700 310,208,300 (148,908,300) 161,300,000 11.75% 12-Sep-12 12-Sep-22
18 10 years BGTB Treasury Bond HTM 208,000,415 203,463,100 (1,417,600) 202,045,500 11.75% 14-Nov-12 14-Nov-22
Total -D 3,245,189,407 3,234,248,800 (3,473,300) 3,230,775,500
 RUPALI BANK LIMITED
INVESTMENT AGAINST GOVERNMENT TREASURY BONDS (HTM)
As at 31 December 2019

Sl. Amount of Value as on . Coupon

Nature of Investment Status Increase / Decrease Present Value Date of Issue Date of Maturity
No. Investment 01.01.2019 Rate %
1 15 years BGTB Treasury Bond HTM 19,659,238 19,668,100 2,100 19,670,200 11.93% 17-Oct-12 17-Oct-27
2 15 years BGTB Treasury Bond HTM 9,193,798 9,195,000 300 9,195,300 12.38% 20-Mar-13 20-Mar-28
3 15 years BGTB Treasury Bond HTM 19,010,250 19,026,000 4,100 19,030,100 12.40% 24-Jul-13 24-Jul-28
4 15 years BGTB Treasury Bond HTM 28,963,405 28,985,700 6,100 28,991,800 12.42% 23-Oct-13 23-Oct-28
5 15 years BGTB Treasury Bond HTM 44,151,312 44,176,200 6,700 44,182,900 12.42% 25-Sep-13 25-Sep-28
6 15 years BGTB Treasury Bond HTM 47,109,391 47,143,600 8,900 47,152,500 12.40% 19-Jun-13 19-Jun-28
7 15 years BGTB Treasury Bond HTM 29,537,218 29,545,400 2,600 29,548,000 11.47% 26-Nov-14 26-Nov-29
8 15 years BGTB Treasury Bond HTM 43,582,208 43,616,300 11,100 43,627,400 11.47% 26-Nov-14 26-Nov-29
9 15 years BGTB Treasury Bond 491,315,500 492,309,200 385,500 492,694,700 7.79% 27-Apr-16 27-Apr-31
10 15 years BGTB Treasury Bond HTM 500,006,000 499,892,700 (37,300) 499,855,400 11.47% 26-Nov-14 26-Nov-29
11 15 years BGTB Treasury Bond HTM 18,024,671 18,019,500 (1,200) 18,018,300 12.10% 19-Dec-12 19-Dec-27
12 15 years BGTB Treasury Bond HTM 500,000,000 500,000,000 - 500,000,000 14.00% 11-Jul-07 11-Jul-22
13 15 years BGTB Treasury Bond HTM 300,000,000 300,000,000 - 300,000,000 13.48% 12-Sep-07 12-Sep-22
14 15 years BGTB Treasury Bond HTM 200,000,000 200,000,000 - 200,000,000 12.94% 14-Nov-07 14-Nov-22
15 15 years BGTB Treasury Bond HTM 500,000,000 500,000,000 - 500,000,000 12.14% 15-Oct-08 15-Oct-23
16 15 years BGTB Treasury Bond HTM 71,400,000 71,400,000 - 71,400,000 11.88% 19-Sep-12 19-Sep-27
17 15 years BGTB Treasury Bond HTM 16,100,000 16,100,000 - 16,100,000 12.20% 16-Jan-13 16-Jan-28
Total -E 2,838,052,992 2,839,077,700 388,900.00 2,839,466,600

Annual Report 2019

Rupali Bank Limited

325
 RUPALI BANK LIMITED

326
INVESTMENT AGAINST GOVERNMENT TREASURY BONDS (HTM)
As at 31 December 2019

Sl. Amount of Value as on . Coupon

Nature of Investment Status Increase / Decrease Present Value Date of Issue Date of Maturity
No. Investment 01.01.2019 Rate %
1 20 years BGTB Treasury Bond-2032 HTM 21,168,460 21,171,800 800 21,172,600 12.16% 25-Oct-12 25-Oct-32
2 20 years BGTB Treasury Bond-2032 HTM 9,770,913 9,774,000 700 9,774,700 12.18% 28-Nov-12 28-Nov-32
3 20 years BGTB Treasury Bond-2033 HTM 15,466,112 15,469,300 800 15,470,100 12.48% 27-Mar-13 27-Mar-33
4 20 years BGTB Treasury Bond-2033 HTM 28,474,012 28,484,000 2,800 28,486,800 12.33% 26-Dec-13 26-Dec-33
5 20 years BGTB Treasury Bond-2033 HTM 21,987,538 21,997,000 2,500 21,999,500 12.48% 25-Sep-13 25-Sep-33
6 20 years BGTB Treasury Bond-2033 HTM 22,584,484 22,594,800 2,700 22,597,500 12.48% 26-Jun-13 26-Jun-33
7 20 years BGTB Treasury Bond-2034 HTM 50,509,672 50,522,000 3,900 50,525,900 11.98% 29-Oct-14 29-Oct-34
8 20 years BGTB Treasury Bond-2034 HTM 22,663,291 22,671,900 2,800 22,674,700 11.98% 26-Nov-14 26-Nov-34
9 20 years BGTB Treasury Bond-2034 HTM 37,536,799 37,547,600 3,600 37,551,200 11.98% 26-Nov-14 26-Nov-34
10 20 years BGTB Treasury Bond-2034 HTM 110,230,087 109,758,600 (171,100) 109,587,500 12.14% 23-Apr-14 23-Apr-34
11 20 years BGTB Treasury Bond-2034 HTM 1,842,666,600 1,842,642,800 (8,000) 1,842,634,800 11.98% 26-Nov-14 26-Nov-34
12 20 years BGTB Treasury Bond-2034 HTM 318,365,100 317,183,800 (429,000) 316,754,800 12.10% 23-Jul-14 23-Jul-34
13 20 years BGTB Treasury Bond-2034 HTM 266,341,500 265,240,100 (399,900) 264,840,200 12.14% 28-May-14 28-May-34
14 20 years BGTB Treasury Bond-2033 HTM 120,065,428 119,419,900 (234,200) 119,185,700 12.33% 26-Dec-13 26-Dec-33
15 20 years BGTB Treasury Bond-2032 HTM 148,607,217 147,675,200 (337,000) 147,338,200 12.12% 27-Jun-12 27-Jun-32
16 20 years BGTB Treasury Bond-2032 HTM 114,212,300 113,487,300 (262,100) 113,225,200 12.07% 25-Apr-12 25-Apr-32
17 20 years BGTB Treasury Bond-2027 HTM 349,000,000 349,000,000 - 349,000,000 15.95% 25-Jul-07 25-Jul-27
18 20 years BGTB Treasury Bond-2027 HTM 245,100,000 245,100,000 - 245,100,000 14.23% 26-Sep-07 26-Jul-27
19 20 years BGTB Treasury Bond-2027 HTM 97,000,000 97,000,000 - 97,000,000 13.49% 28-Nov-07 28-Nov-27
20 20 years BGTB Treasury Bond-2028 HTM 500,000,000 500,000,000 - 500,000,000 13.07% 23-Jul-08 23-Jul-28
21 20 years BGTB Treasury Bond-2032 HTM 60,900,000 60,900,000 - 60,900,000 12.16% 29-Aug-12 29-Aug-32
22 20 years BGTB Treasury Bond-2032 HTM 30,400,000 30,400,000 - 30,400,000 12.16% 26-Sep-12 26-Sep-32
23 20 years BGTB Treasury Bond-2032 HTM 20,600,000 20,600,000 - 20,600,000 12.28% 26-Dec-12 26-Dec-32
Total -F 4,453,649,514 4,448,640,100 (1,820,700) 4,446,819,400
 RUPALI BANK LIMITED
INVESTMENT AGAINST GOVERNMENT TREASURY BONDS (HTM)
As at 31 December 2019

Sl. Amount of Value as on . Coupon

Nature of Investment Status Increase / Decrease Present Value Date of Issue Date of Maturity
No. Investment 01.01.2019 Rate %
Total Investment (Bond) = (A + B + C+D) 43,041,796,814 32,662,306,396 10,365,471,704 43,027,778,100

Asset Revaluation Reserve (HTM) - - - -

Total (G) 43,041,796,814 32,662,306,396 10,365,471,704 43,027,778,100

10 years BGMC/BTMC Bond-2021 HTM 2,040,000,000 2,040,000,000 0.00% 16-Jan-11 16-Jan-21

Total(H) 2,040,000,000 - 2,040,000,000

G.Total (G+H) 45,081,796,814 32,662,306,396 - 45,067,778,100

Annual Report 2019

Rupali Bank Limited

327
 RUPALI BANK LIMITED

328
INVESTMENT AGAINST GOVERNMENT TREASURY BOND (HFT)
As at 31 December 2019 Schedule - “B-1”

Sl. Amount of Value as on .

Nature of Investment Status Increase / Decrease Present Value Interest Rate % Date of Issue Date of Maturity
No. Investment 01.01.2019
1 10 years Treasury Bond HFT 721,575,735 824,134,510.00 (95,058,700) 729,075,810.00 11.56% 16-May-12 16-May-22
2 10 years Treasury Bond HFT 450,431,709 514,508,430.00 (59,998,740) 454,509,690.00 1.60% 13-Jun-12 13-Jun-22
3 10 years Treasury Bond HFT 387,630,205 449,656,260.00 (54,954,150) 394,702,110.00 11.80% 10-Oct-12 10-Oct-22
4 10 years Treasury Bond HFT 314,985,900 383,417,530.00 (52,864,410) 330,553,120.00 10.75% 19-Mar-14 19-Mar-24
5 10 years Treasury Bond HFT 428,946,000 497,797,300.00 (62,654,130) 435,143,170.00 11.90% 9-Jan-13 9-Jan-23
Total (A) 2,303,569,548.70 2,669,514,030.00 (325,530,130.00) 2,343,983,900.00
7 15 years Treasury Bond HFT 321,285,250 321,261,350 (43,779,550) 277,481,800 12.14% 12-Nov-08 12-Nov-23
8 15 years Treasury Bond 205,853,800 261,476,660 (33,338,800) 228,137,860 11.75% 23-May-12 23-May-27
9 15 years Treasury Bond HFT 600,000,000 774,446,920 (106,745,310) 667,701,610 12.14% 14-Jan-09 14-Jan-24
10 15 years Treasury Bond HFT 207,265,000 262,615,300 (33,076,480) 229,538,820 11.85% 18-Jul-12 18-Jul-27
11 15 years Treasury Bond HFT 500,118,000 643,067,680 (71,251,090) 571,816,590 11.47% 26-Nov-14 26-Nov-29
Total (B) 1,834,522,050.00 2,262,867,910.00 (288,191,230.00) 1,974,676,680.00
12 20 years Treasury Bond HFT 700,000,000.00 966,079,550 (103,780,990.00) 862,298,560 13.02% 24-Dec-08 24-Dec-28
Total (C) 700,000,000.00 966,079,550.00 (103,780,990.00) 862,298,560.00

G.Total (A+B+C) 4,838,091,598.70 5,898,461,490.00 (717,502,350.00) 5,180,959,140.00

 RUPALI BANK LIMITED
INVESTMENT AGAINST GOVERNMENT TREASURY BOND (HFT)
As at 31 December 2019 Schedule - “B-2”

Sl. Amount of Value as on .

Nature of Investment Status Increase / Decrease Present Value Interest Rate % Date of Issue Date of Maturity
No. Investment 01.01.2019
364 Day HFT 924,586,000 452,500.00 925,038,500.00 8.1789% 23-Dec-19 21-Dec-20
364 Day HFT 926,713,000 27,716,500.00 954,429,500.00 7.9300% 5-Aug-19 3-Aug-20
364 Day HFT 939,740,000 26,436,900.00 966,176,900.00 6.4300% 10-Jun-19 8-Jun-20
364 Day HFT 920,081,000 27,025,700.00 947,106,700.00 3.4313% 9-Sep-19 7-Sep-20
364 Day HFT 459,998,000 12,821,800.00 472,819,800.00 8.7200% 16-Sep-19 14-Sep-20
C.
364 Day HFT 961,916,800 23,215,600.00 985,132,400.00 3.9700% 11-Mar-19 9-Mar-20
364 Day HFT 514,426,150 12,764,650.00 527,190,800.00 4.5000% 1-Apr-19 30-Mar-20
364 Day HFT 1,431,546,000 37,515,100.00 1,469,061,100.00 4.7950% 8-Apr-19 6-Apr-20
364 Day HFT 949,349,200 27,328,400.00 976,677,600.00 5.3500% 21-Apr-19 19-Apr-20
Total 8,028,356,150.00 - 195,277,150.00 8,223,633,300.00

Annual Report 2019

Rupali Bank Limited

329
 RUPALI BANK LIMITED

330
SUMMARY OF INVESTMENT AGAINST QUOTED SHARE
As at 31 December 2019 Schedule - “B-3”

Face value Purchase Market value of

Date of Total Market value
Sl. No. Name of Company No. of Share of Each Price of Purchase Value Each share 31- (Decrease) value
Purchase 31-12-19
share Each share 12-19
1 2 3 4 5 6 7 5x7=8 9 5 X 9 = 10 10 - 8 = 11
Investment in Bangladesh
A . Government Organization
1 Investment Corporation of Bangladesh ( ICB) 02.12.77 18,716,315 10 10 169,762,500 77 1,437,412,992 1,267,650,492
2 Investment Corporation of Bangladesh ( ICB) 30.12.14 9,358,163 10 45 424,406,500 77 718,706,918 294,300,418
A Total 28,074,478 594,169,000 2,156,119,910 1,561,950,910
B . Others Organization
1 National Tea Co. Ltd. 4,540 10 10 45,440 532.4 2,417,096 2,371,656
2 Bangladesh Shipping Corp. 20.07.77 4,070 10 9 36,400 42.30 172,161 135,761
3 Paper Converting and Packaging Ltd. 23.06.80 8,390 10 10 83,900 12.00 100,680 16,780
4 Padma Printers andColour Ltd. 18.10.79 16,710 10 10 167,100 13.60 227,256 60,156
5 Standard Ceramics Ltd 28.09.96 390 10 15 5,850 675.40 263,406 257,556
6 SREEPURTEX (S T M Ltd) 09.11.85 5,630 10 10 56,362 9.50 53,485 (2,877)
7 Swan Textile Mills Ltd 10.11.85 578 100 100 57,800 0.00 - (57,800)
8 IDLC Ltd 20.01.93 149,691 10 39 5,865,999 45.40 6,795,971 929,972
9 Heiledberg Cement 16.08.89 23,660 10 207 4,890,423 164.80 3,899,168 (991,255)
10 Bangladesh chemical ind. ltd 27.05.95 4,170 10 10 41,700 17.25 71,933 30,233
11 Eastern Bank ltd 05.10.92 722,750 10 5 3,863,680 33.20 23,995,300 20,131,620
12 Apex weaving finishing mills ltd 09.02.95 480 10 10 4,800 5.00 2,400 (2,400)
13 Beximco 17-06-95 8,412 10 17 145,550 13.80 116,086 (29,464)
14 Bangladesh Electricity Meter Co. Ltd 22.08.95 18,530 10 10 185,300 61.50 1,139,595 954,295
15 7th ICB Unit Fund 15.07.95 4,771 10 1 3,100 10.70 51,050 47,950
16 Specialized Jute Yarn Manufac. Co. Ltd 22.07.86 19,880 10 10 198,800 0.00 - (198,800)
17 Azadi Printers Ltd 17.01.92 756 100 100 75,600 60.00 45,360 (30,240)
18 Bengal Fine Ceramic Ltd. 18.07.92 2,572 10 100 257,200 67.00 172,324 (84,876)
19 8th ICB Mutual Fund 10.08.96 1,511 10 1 2,100 10.00 15,110 13,010
20 Wonder Land Toys Ltd 24.08.96 4,173 10 100 417,300 5.00 20,865 (396,435)
 RUPALI BANK LIMITED
SUMMARY OF INVESTMENT AGAINST QUOTED SHARE
As at 31 December 2019

Face value Purchase Market value of

Date of Total Market value
Sl. No. Name of Company No. of Share of Each Price of Purchase Value Each share 31- (Decrease) value
Purchase 31-12-19
share Each share 12-19
1 2 3 4 5 6 7 5x7=8 9 5 X 9 = 10 10 - 8 = 11
21 Excel Sure Shoe Ltd 28.11.96 3,277 10 100 327,700 13.20 43,256 (284,444)
22 Niloy Cement Industries Ltd 26.06.97 2,162 10 100 216,200 0.00 - (216,200)
23 Uttara Finance & Investment Ltd 14.07.97 50,000 10 9 435,740 55.00 2,750,000 2,314,260
24 Square Textile Ltd 11.08.02 37,788 10 6 223,940 31.00 1,171,428 947,488
25 ICB Islamic Bank Ltd 01.07.08 8,056,700 10 10 80,567,000 3.00 24,170,100 (56,396,900)
26 Grameen Phone Ltd 04.12.08 102,127 10 74 7,557,398 285.80 29,187,897 21,630,499
27 Summit Power 26.09.10 1,835,994 10 59 109,067,938 36.30 66,646,582 (42,421,356)
28 Orion Pharma Ltd. 10.11.10 4,800,000 10 83 400,000,000 26.90 129,120,000 (270,880,000)
29 Singer bangladesh 30/03/97 32,065 10 62 1,990,173 180.40 5,784,526 3,794,354
30 Monno Ceramics 30/03/97 16,474 10 45 748,098 123.30 2,031,244 1,283,146
31 Square Pharma 1/1/2005 38,152 10 4 167,564 190.00 7,248,880 7,081,316
32 Appex Tanary Ltd. 30/03/97 18,400 10 66 1,210,603 116.80 2,149,120 938,517
33 Appex Foot wear Ltd. 30/03/97 4,500 10 37 166,253 223.10 1,003,950 837,698
34 BD Lamps 30/03/97 5,460 10 169 924,550 125.80 686,868 (237,682)
35 Green Delta Insurance 30/03/97 7,918 10 10 81,584 52.20 413,320 331,736
36 Delta Life Insurance 12/5/1999 35,062 10 0 8,500 78.50 2,752,367 2,743,867
37 Progoti Insurance 27/07/2009 887 10 7 6,380 38.50 34,150 27,770
38 Beximco Pharma 5/3/1999 3,853 10 8 28,960 69.40 267,398 238,438
39 Atlas Bangladesh 30/03/97 1,653 10 17 28,880 109.50 181,004 152,124
40 Bata Shoe 30/03/97 1,500 10 133 199,238 696.10 1,044,150 844,912
41 BGIC Ltd. 16.11.09 17,721 10 14 245,710 24.50 434,165 188,455
42 National Bank Ltd. 11.1-2.3.11 443,345 10 25 10,919,131 8.10 3,591,095 (7,328,036)
43 Pubali Bank Ltd. 11.1-28.2.11 75,343 10 41 3,074,856 24.00 1,808,232 (1,266,624)
44 AB Bank 12.1-2.3.11 382,953 10 53 20,432,779 7.90 3,025,329 (17,407,451)

Annual Report 2019

Rupali Bank Limited

45 Exim Bank 12.1-2.3.11 71,309 10 28 1,999,121 10.10 720,221 (1,278,900)

46 Prime Bank 12.1-2.3.11 121,386 10 33 4,021,543 18.20 2,209,225 (1,812,318)

331
 RUPALI BANK LIMITED

332
SUMMARY OF INVESTMENT AGAINST QUOTED SHARE
As at 31 December 2019

Face value Purchase Market value of

Date of Total Market value
Sl. No. Name of Company No. of Share of Each Price of Purchase Value Each share 31- (Decrease) value
Purchase 31-12-19
share Each share 12-19
1 2 3 4 5 6 7 5x7=8 9 5 X 9 = 10 10 - 8 = 11
47 Shajalal Bank 12.1-2.3.11 89,930 10 26 2,372,656 23.40 2,104,362 (268,294)
48 Southest Bank 12.1-22.9.11 587,149 10 30 17,842,500 13.40 7,867,797 (9,974,703)
49 Trust bank 12.1-2.3.11 157,930 10 23 3,649,873 27.40 4,327,282 677,409
50 Uttara Bank 12.1-27.2.11 120,000 10 55 6,605,150 27.20 3,264,000 (3,341,150)
51 Summit Power 12.1-27.2.11 37,436 10 54 2,033,845 36.30 1,358,927 (674,918)
52 Brac Bank 16.1-27.2.11 6,545 10 - - 57.10 373,720 373,720
53 ICB 16/01/11 10,223 10 170 1,741,368 76.80 785,126 (956,241)
54 ICB 30.12.14 5,105 10 41 210,500 76.80 392,064 181,564
55 Islami Bank 16.1-27.2.11 79,632 10 35 2,779,816 19.10 1,520,971 (1,258,845)
56 Mutual trust Bank 16.1-6.2.11 124,605 10 18 2,213,671 26.50 3,302,033 1,088,362
57 Power Grid 16.1-6.2.11 88,000 10 84 7,376,434 44.60 3,924,800 (3,451,634)
58 Standard Bank 16.1-1.2.11 141,254 10 14 2,044,685 8.90 1,257,161 (787,524)
59 PLFSL 16.1-30.1.11 1,570 10 104 163,614 3.00 4,710 (158,904)
60 Beximco 17.1-27.2.11 72,536 10 73 5,265,536 13.80 1,000,997 (4,264,539)
61 ICB 3rd NRB 17.1-1.2.11 20,000 10 13 256,011 4.60 92,000 (164,011)
62 One Bank Ltd 1.2-2.3.11 162,442 10 16 2,614,923 10.30 1,673,153 (941,771)
63 Titas Gas 12,600 10 91 1,143,352 30.90 389,340 (754,012)
Total B 18,884,650 719,368,174 361,672,191 (357,695,983)
A+B Sub Total 46,959,128 1,313,537,174 2,517,792,102 1,204,254,927
C. Foreign Investment
64 Summit S Bank (Ex Arif Habib Bank) 30.12.2007 29,500,000 10 11 335,562,500 0.77 22,715,000 (312,847,500)
65 Summit S Bank (Ex Arif Habib Bank) 20.08.09 3,277,450 10 8 27,710,840 0.77 2,523,637 (25,187,203)
Total C 32,777,450 363,273,340 25,238,637 (338,034,703)

A+B+C G.Total 79,736,578 1,676,810,514 2,543,030,738 866,220,224

G.Total (Excluding ICB) 70,378,415 1,252,404,014 1,824,323,820 571,919,806

 RUPALI BANK LIMITED
SUMMARY OF INVESTMENT AGAINST UNQUOTED SHARE
As at 31 December 2019

Face value Purchase Market value of

Sl. Total Market value
Name of Company Date of Purchase No. of Share of Each Price of Purchase Value Each share 31- (Decrease) value
No. 31-12-19
share Each share 12-19

1 Karmasangsthan Bank 01.04.99 150,000 100.00 100 15,000,000 15,000,000 -

2 Karmasangsthan Bank 05.06.2014 650,000 100.00 100 65,000,000 65,000,000

3 CDBL 03.02.05 3,000,000 10.00 10 30,000,000 30,000,000

4 CDBL ( Right) 1/13/2009 5,567,705 10.00 10 8,541,640 8,541,640

03.05.12, 04.07.12,
5 Orion Infrastructure Ltd (Redeemable Preferance Share) 148,280,000 10.00 10 1,482,800,000 1,482,800,000 -
04.09.13, 10.10.13

6 Orion Infrastructure Ltd (Convertible Equity Share) 22.10.12, 20.12.12 50,000,000 10.00 10 500,000,000 500,000,000

7 The Farmers bank Ltd. 20.05.18 165,000,000 10.00 10 1,650,000,000 1,650,000,000

8 CCBL 31.03.2019 3,750,000 10.00 10 37,500,000 37,500,000

Disaster Recovery Site

9 24.04.2019 500,000 10.00 10 5,000,000 5,000,000
Bangladesh Ltd.

10 Best Holdings Ltd. 12.09.2019 46,153,846 10.00 65 3,000,000,000 3,000,000,000

Total 423,051,551 6,793,841,640 6,793,841,640

Annual Report 2019

Rupali Bank Limited

333
 RUPALI BANK LIMITED

334
STATEMENT OF INVESTMENT IN DEBENTURE
As at 31 December 2019 Schedule - “B-4”

Sl. Interest Total Outstanding book value Date of Outstanding upto

Particulars Due Interest Date of Maturity
No. Rate Investment up to 31-12-2019 Issue 31-12-2019
1 2 3 4 5 6 7 8 9
A) Debenture (Approved):
Bangladesh Steel & Eng. Corp:
Bangladesh Mechine Tools Ltd. 11.75% 4,000,000 69,350 11,350,000 26.06.1980 30.12.1989 11,419,350
Sub Total (1) 4,000,000 69,350 11,350,000 - - 11,419,350
Bangladesh Textiles Mills Corp. 11.75% 24,900,000 2,513,850 6,203,310 06.05.1978 06.05.1993 8,717,160
Sub Total (2) 24,900,000 2,513,850 6,203,310 8,717,160
Total (A) (1+2) 28,900,000 2,583,200 17,553,310 - - 20,136,510
B) Debenture (Unapproved): - - - - -
Beximco Synthetics Ltd. 14.00% 50,000,000 92,190 9,241,560 30.09.1993 01.09.2003 9,333,750
50,000,000 92,190 9,241,560 - - 9,333,750
G.Total (A+B) 78,900,000 2,675,390 26,794,870 - - 29,470,260
 RUPALI BANK LIMITED
INVESTMENT AGAINST SUBORDINATED BONDS
As at 31 December 2019 Schedule - “B-5”

Sl. Amount of Increase / Interest

Nature of Investment Status Present Value Date of Issue Date of Maturity
No. Investment Decrease Rate(%)

1 UCBL (Sub ordinated Bond) 7Yrs. 200,000,000 - 200,000,000 11.50% 16-May-13 16-May-20

2 One Bank Ltd ( sub Ordinated Bond) 7Yrs. 100,000,000 - 100,000,000 12.00% 26-Dec-13 26-Dec-20

3 Southeast Bank Limited 7Yrs. 400,000,000 - 400,000,000 11.25% 18-Dec-14 18-Dec-21

4 Prime Bank Limited 7Yrs. 200,000,000 - 200,000,000 7.97% 31-Mar-15 31-Mar-22

5 Bank Asia Limited 7 Yrs. 360,000,000 - 360,000,000 11.50% 19-Feb-15 19-Feb-22

6 Eastern Bank Limited 7 Yrs. 360,000,000 - 360,000,000 11.50% 19-Feb-15 19-Feb-22

7 EXIM Bank Limited 7 Yrs. 360,000,000 - 360,000,000 11.50% 19-Feb-15 19-Feb-22

8 Social Islami Bank Limited 6 Yrs. 600,000,000 - 600,000,000 9.00% 25-Mar-15 25-Mar-21

9 Jamuna Bank Limited 7-Yrs 300,000,000 - 300,000,000 11.50% 28-Jul-15 28-Jul-22

10 United Commercial Bank Ltd (02) 7-Yrs 300,000,000 - 300,000,000 10.00% 29-Jul-15 29-Jul-22

11 Al Arafah Islami Bank 7-Yrs 600,000,000 - 600,000,000 10.50% 29-Sep-15 29-Sep-22

12 AB Bank Limietd 7-Yrs 600,000,000 - 600,000,000 10.50% 20-Sep-15 20-Sep-22

13 Standard Bank Limited 6-Yrs 200,000,000 - 200,000,000 11.50% 1-Dec-15 1-Dec-21

14 Dhaka Bank Ltd.2nd sub Debt 7-Yrs 800,000,000 - 800,000,000 11.00% 15-May-16 15-May-23

15 IFIC Bank Limited 7-Yrs 800,000,000 - 800,000,000 8.82% 29-May-16 29-May-23

16 Trust Bank Limited-III 7-Yrs 720,000,000 - 720,000,000 10.50% 27-Oct-16 27-Oct-23

17 One Bank Sub ordinated Bond-II 7-Yrs 160,000,000 - 160,000,000 8.50% 27-Oct-16 27-Oct-23

18 Southeast Bank Subordinated Bond-II 7-Yrs 200,000,000 - 200,000,000 8.20% 27-Oct-16 27-Oct-23

19 Mutual Trust Bank Ltd.( Sub-Ordinated Bond-III) 7-Yrs 200,000,000 - 200,000,000 8.59% 16-Feb-17 16-Feb-24

20 Shahjalal Islami Bank 7-Yrs 700,000,000 - 700,000,000 8.25% 15-Jun-17 15-Jun-24

Annual Report 2019

21 Dutch Bangla Bank Ltd 7-Yrs 1,000,000,000 - 1,000,000,000 9.03% 15-Jun-17 15-Jun-24
Rupali Bank Limited

335
 RUPALI BANK LIMITED

336
INVESTMENT AGAINST SUBORDINATED BONDS
As at 31 December 2019

Sl. Amount of Increase / Interest

Nature of Investment Status Present Value Date of Issue Date of Maturity
No. Investment Decrease Rate(%)

22 Social Islami Bank Limited 6-Yrs 400,000,000 - 400,000,000 7.97% 20-Jun-17 20-Jun-23

23 The City Bank Sub Bond -II 7-Yrs 800,000,000 - 800,000,000 8.17% 21-Jun-17 21-Jun-24

24 First Security Islami Bank Subordinated Bond-II 7-Yrs 1,000,000,000 - 1,000,000,000 8.00% 19-Dec-17 19-Dec-24

25 Pubali Bank Subordinated Bond 7-Yrs 1,000,000,000 - 1,000,000,000 8.82% 20-Dec-17 20-Dec-24

26 National Bank Subordinated Bond-II 7-Yrs 900,000,000 - 900,000,000 8.17% 21-Dec-17 21-Dec-24

27 UCBL Sub ordinated Bond-III 7-Yrs 250,000,000 - 250,000,000 8.50% 28-Dec-17 28-Dec-24

28 NCC Bank Ltd. Subordinated Bond 7-Yrs 1,000,000,000 - 1,000,000,000 9.75% 16-May-18 16-May-25

29 Prime Bank Limited Sub ordinated Bond-III 7-Yrs 1,500,000,000 - 1,500,000,000 10.50% 12-Aug-18 12-Aug-25

30 Dhaka Bank Limited Sub ordinated Bond-III 7-Yrs 1,000,000,000 - 1,000,000,000 10.50% 12-Aug-18 12-Aug-25

31 Southeast Bank Limited Sub ordinated Bond-III 7-Yrs 750,000,000 - 750,000,000 10.50% 12-Aug-18 12-Aug-25

32 Farmers Bank Limited Sub ordinated Bond 7-Yrs 500,000,000 - 500,000,000 10.00% 17-Dec-18 17-Dec-24

33 Trust Bank Limited Sub ordinated Bond-IIII 7-Yrs 750,000,000 - 750,000,000 9.00% 19-Dec-18 19-Dec-25

34 Shahajalal Bank Limited Sub ordinated Bond-II 7-Yrs 750,000,000 - 750,000,000 9.00% 19-Dec-18 19-Dec-25

35 Islami Bank Bangladesh Limited Sub ordinated Bond 7-Yrs 1,000,000,000 - 1,000,000,000 9.00% 24-Dec-18 24-Dec-25

36 Dutch Bangla Bank Limited Sub ordinated Bond-II 7-Yrs 750,000,000 - 750,000,000 9.00% 24-Dec-18 24-Dec-25

37 Premir Bank Limited Sub ordinated Bond 7-Yrs 1,000,000,000 - 1,000,000,000 10.00% 24-Dec-18 24-Dec-23

38 Al-arafa Islami Bank Limited Sub ordinated Bond-II 7-Yrs 750,000,000 - 750,000,000 9.38% 27-Dec-18 27-Dec-25

39 ICB 7-Yrs 1,500,000,000 - 1,500,000,000 9.0000% 3-Dec-18 3-Dec-25

40 FSIBL III 7-Yrs 1,000,000,000 - 1,000,000,000 8.5000% 21-Apr-19 21-Apr-26

41 Union Bank 7-Yrs 500,000,000 - 500,000,000 9.5000% 7-Oct-19 7-Oct-26

42 Exim Bank-II 7-Yrs 500,000,000 - 500,000,000 10.0000% 5-Dec-19 5-Dec-26

Total 26,760,000,000.00 - 26,760,000,000.00

 RUPALI BANK LIMITED
INVESTMENT AGAINST MUTUAL FUND
As at 31 December 2019 Schedule - “B-6”

Sl. Amount of Increase / Interest

Name of mutual fund Status Present Value Date of Issue Tenor
No. Investment Decrease Rate
Investment against Mutual fund for the year ended 31 December, 2019

1 Bangladesh Fund 1,060,000,000.00 - 1,007,000,000 Dividend 2010 10 years

2 Vanguard AML Rupali Bank Balnced Fund 400,000,000.00 (96,000,000.00) 304,000,000 Dividend 2013 10 years

Total 1,460,000,000.00 (96,000,000.00) 1,311,000,000.00

Investment against Commercial Paper for the year ended 31 December 2019

1 Energypac 300,000,000 300,000,000 11.0000% 2/25/2019 11/21/2019

2 Hashem Foods Ltd 50,000,000 - 50,000,000 11.0000% 5/5/2019 1/29/2020

Total 350,000,000.00 - 350,000,000.00

Investment against Corporate Bond for the year ended 31 December 2019

1 Ashugonj 750,000,000 750,000,000 9.50% 1/15/2019 1/15/2026

2 Beximco comm.Ltd 2,500,000,000 - 2,500,000,000 10.00% 9/11/2019 9/11/2029

Total 3,250,000,000.00 - 3,250,000,000.00

Annual Report 2019

Rupali Bank Limited

337
 RUPALI BANK LIMITED

338
CLASSIFICATION AND PROVISIONING OF LOANS AND ADVANCES INCLUDING BILL PURCHASED AND DISCOUNTED
As at 31 December 2019

Schedule - “C”

Amount of
Outstanding Percentage
Provision Required
Status Continuous Demand Fixe d Te rm Loan Staff loan Stag & MC Amount as of 31 Base for Provision (%)
as of 31 December
December 2019 of Provision
2019

Unclassified:
Off Balance sheet Items 29,868,944,700 29,868,944,700 29,868,944,700 1% 270,799,700
Sub- Total (A) 29,868,944,700 - - - - 29,868,944,700 29,868,944,700 270,799,700

Standard 17,751,396,192 30,810,042 3,131,342,116 - - 20,913,548,350 20,913,548,350 0.25% 52,283,871

Standard 71,589,337,806 8,879,702,682 99,164,790,574 - 179,633,831,062 179,633,831,062 1% 3,810,438,310.62
Standard 107,664,839 74,119 6,315,786,645 - 6,423,525,603 6,423,525,603 2% 128,470,512
Standard 2,440,783,082 137,818,325 9,254,053,627 - 11,832,655,034 11,832,655,034 5% 591,632,752
Standard (Micro Credit) - - - - 6,047,487,245 6,047,487,245 6,047,487,245 1% 60,474,872
SMA 1,501,765,206 92,375,962 13,273,893,938 - - 14,868,035,106 8,503,921,734 5,2,0.25,1% 727,100,000
Sub- Total (B) 93,390,947,125 9,140,781,130 131,139,866,900 - 6,047,487,245 239,719,082,400 233,354,969,028 5,370,400,318
Staff Loan (C) - - - 20,859,285,965 - 20,859,285,965 - -
Sub- Total 93,390,947,125 9,140,781,130 131,139,866,900 20,859,285,965 6,047,487,245 260,578,368,365 233,354,969,028 5,370,400,318
Classified:
Substandard (Micro Credit) - - 40,686,179 40,686,179 31,604,866 5% 1,580,243
Doubtful (Micro Credit) - - 40,344,313 40,344,313 29,812,225 5% 1,490,611
Substandard 486,537,578 66,056,946 251,229,385 - 803,823,909 354,084,551 20% 75,819,756
Doubtful 163,950,157 4,508,772 271,996,758 - 440,455,687 229,480,998 50% 127,909,389
Bad/ Loss 12,517,346,578 6,456,994,636 25,611,925,468 - 234,094,814 44,820,361,496 20,632,830,798 100% 21,552,300,000
Sub- Total (D) 13,167,834,313 6,527,560,354 26,135,151,611 - 315,125,306 46,145,671,584 21,277,813,438 21,759,100,000
Total (A+B+C+D) 106,558,781,438 15,668,341,484 157,275,018,511 20,859,285,965 6,362,612,551 306,724,039,949 254,632,782,466 27,400,300,017
E. Special Provision - - - - - - - -
G.Total (A+B+C+D+E) 106,558,781,438 15,668,341,484 157,275,018,511 20,859,285,965 6,362,612,551 306,724,039,949 254,632,782,466 - 27,400,300,017
 Rupali Bank Limited

RUPALI BANK LIMITED

CLASSIFICATION AND PROVISIONING OF LOANS AND ADVANCES
INCLUDING BILL PURCHASED AND DISCOUNTED
As at 31 December 2019 Schedule - “C-1”

Amount of Provision
Outstanding Amount as of 31 Pe rce ntage (%)
Status Base for Provision Required as of 31
December 2019 of Provision
December 2019
Unclassified:
Off Balance sheet Items 29,868,944,700 29,868,944,700 1% 298,689,447
Sub- Total (A) 298,689,447
Standard 20,913,548,350 20,913,548,350 0.25% 52,283,871
Standard 179,633,831,062 179,633,831,062 1% 3,810,438,311
Standard 6,423,525,603 6,423,525,603 2% 128,470,512
Standard 11,832,655,034 11,832,655,034 5% 591,632,752
Standard (Micro Credit) 6,047,487,245 6,047,487,245 1.00% 60,474,872
SMA 14,868,035,106 8,503,921,734 5,2,0.25,1% 727,100,000
Sub- Total (B) 239,719,082,400 233,354,969,028 5,370,400,318
Staff Loan (C) 20,859,285,965 - -
Sub- Total 260,578,368,365 233,354,969,028 5,370,400,318
Classified:
Substandard (Micro Credit) 40,686,179 31,604,866 5% 1,580,243
Doubtful (Micro Credit) 40,344,313 29,812,225 5% 1,490,611
Substandard 803,823,909 354,084,551 20% 75,819,756
Doubtful 440,455,687 229,480,998 50% 127,909,389
Bad/ Loss 44,820,361,496 20,632,830,798 100% 21,552,300,000
Sub- Total (D) 46,145,671,584 21,277,813,438 21,759,100,000
Total (A+B+C+D) 306,724,039,949 254,632,782,466 27,428,189,764
E. Special Provision - - -
G.Total (A+B+C+D+E) 306,724,039,949 254,632,782,466 - 27,428,189,764

Annual Report 2019 339

 RUPALI BANK LIMITED

340
SCHEDULE OF FIXED ASSET’S
As at 31 December 2019
Schedule - “D”

Rate
COST DEPRECIATION
(%)
W.D.V. as on
Particulars Revalued/ Charges
Balance as on Sale/Disposal/ Balance as on Balance as on Balance as on 31.12.2019
Addition during during the
01.01.2019 Adjustment 31.12.2019 01.01.2019 31.12.2019
the year year

1 2 4 5 6 7 8 9 10 11
Land 10,011,039,466 - - 10,011,039,466 - - - 10,011,039,466
Building 3,935,392,245 255,525,892 - 4,190,918,137 2.50 838,320,165 83,181,789 921,501,954 3,269,416,183
Furniture & Fixture 727,620,624 96,564,970 74,029 824,111,565 10.00 346,453,755 76,874,017 423,327,772 400,783,793
Mechanical Appliance 1,234,331,886 63,791,315 50,271,131 1,247,852,070 20.00 997,575,408 77,675,394 1,075,250,802 172,601,268
Motor Vehicle 511,420,747 - 18 511,420,729 20.00 443,534,563 36,612,852 480,147,415 31,273,314
Computer 571,529,602 131,934,351 657,033 702,806,920 20.00 248,201,579 161,325,769 409,527,348 293,279,572
Interior Decoration & Renovation 4,121,333 4,121,333 - 0 78,864 78,864 4,042,469
Total (A) 16,991,334,570 547,816,528 51,002,211 17,488,148,887 2,874,085,470 435,748,685 3,309,834,155 14,182,436,065

SCHEDULE OF FIXED ASSET’S

As at 31 December 2019

Rate
COST AMORTIZATION
(%)
W.D.V. as on
Particulars Revalued/ Charges
Balance as on Sale/Disposal/ Balance as on Balance as on Balance as on 31.12.2019
Addition during during the
01.01.2019 Adjustment 31.12.2019 01.01.2019 31.12.2019
the year year

1 2 4 5 6 7 8 9 10 11
Software 130,507,467 40,342,254 - 170,849,721 10.00 16,721,270 9,122,221 25,843,491 145,006,230
Total (B) 130,507,467 40,342,254 - 170,849,721 16,721,270.00 9,122,221 25,843,491 145,006,230
Total (A+B) 17,121,842,037 588,158,782 51,002,211 17,658,998,608 - 2,890,806,740 444,870,906 3,335,677,646 14,327,442,295
 RUPALI BANK LIMITED
STATEMENT OF INTER BRANCH ADJUSTMENT OF UNRECONCILED ENTRIES
As at 31 December 2019 Schedule - “E”

Original Entries Responding Entry Summary Amount

Year Balance
Debit Credit Total Debit Credit Total Total Debit Total Credit Grand Total Debit Credit

2017 15 5 20 1 12 13 16 17 33 48,451,075 10,999,303 37,451,772

Total 48,451,075 10,999,303 37,451,772

2018 44 55 99 7 5 12 51 60 111 190,829,348 3,971,882 186,857,466

Total 59 60 119 8 17 25 67 77 144 239,280,423 14,971,185 224,309,238

2019 3,137 1,876 5,013 100 82 182 3,237 1,958 5,195 8,124,413,803 13,812,952,521 (5,688,538,718)
Total 3,196 1,936 5,132 108 99 207 3,304 2,035 5,339 8,363,694,226 13,827,923,706 (5,464,229,480)

Base of provision (2016-2017)

A Total Debit 67 239,280,423
B. Total Credit 77 14,971,185 224,309,238
Un-reconciled (Dr.) amount (10) 224,309,238

Above 12 months (50%) 95,414,674

Above 24 months (100%) 48,451,075

Provision Required 143,865,749

Provision exists 143,914,424
Provision made during the year -
Provision Surplus / (Shortfall) 48,675

Annual Report 2019

Rupali Bank Limited

341
RUPALI BANK LIMITED
CLASSIFICATION OF SHAREHOLDING BY SHAREHOLDERS
As at 31 December 2019 Details shown in Annexure-F

2019 2018
Limit of holding of share No. of
% No. of Share % No. of Shareholder No. of Share
Shareholder
Under 5000 shares 1.04% 5,577 4,288,653 1.63% 7,056 6,138,608
5001 to 50000 1.85% 598 7,649,428 2.86% 854 10,755,772
50001 to 100000 0.42% 31 1,748,156 0.62% 31 2,323,212
100001 to 200000 0.58% 13 2,396,076 0.84% 22 3,173,327
200001 to 300000 0.92% 15 3,829,134 0.71% 11 2,660,681
300001 to 400000 0.57% 7 2,358,434 0.50% 6 1,892,660
400001 to 500000 0.22% 2 895,669 0.12% 1 452,370
500001 to 1000000 0.53% 3 2,198,365 0.78% 4 2,931,417
1000001 to 10000000 3.69% 7 15,277,567 1.76% 4 6,618,755
Over 10000000 shares 90.19% 1 373,527,150 90.19% 1 339,570,137
100.00% 6,254 414,168,632 100.00% 7,990 376,516,939

342
Rupali Bank Limited

Annual Report 2019 343

INDEPENDENT AUDITORS’ REPORT
To the Shareholders of Rupali Investment Limited
Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Rupali Investment Limited, which comprise the Balance Sheets as at 31 December 2019 and
the Profit and Loss accounts, Statements of Changes in Equity and Cash Flow Statements for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies.

In our opinion, except for the effects of the matters disclosed in Note 3.2, the accompanying financial statements of the Company give a true and
fair view of the balance sheet of the Company as at 31 December 2019, and of its profit and loss accounts and its cash flows for the year then
ended in accordance with International Financial Reporting Standards (IFRSs).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further
described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in
accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), Bangladesh
Securities and Exchange Commission (BSEC) and Bangladesh Bank, and we have fulfilled our other ethical responsibilities in accordance with
the IESBA Code and the Institute of Chartered Accountants of Bangladesh (ICAB) Bye Laws. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with IFRSs, the Companies Act
1994 and other applicable laws and regulations and for such internal control as management determines is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate
the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We
also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based

344
 Rupali Bank Limited

INDEPENDENT AUDITORS’ REPORT

To the Shareholders of Rupali Investment Limited
Report on the Audit of the Financial Statements

on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.

Report on Other Legal and Regulatory Requirements

In accordance with the Companies Act 1994, we also report the following:

a) we have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our
audit and made due verification thereof;

b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appeared from our examination of
those books;

c) the statement of financial position and statement of profit or loss and other comprehensive income dealt with by the report are in
agreement with the books of account; and

d) the expenditure incurred was for the purpose of the company’s business.

Dated, Dhaka M. J. ABEDIN & CO

Thursday, June 04, 2020 Chartered Accountants

Monzur hosain

Annual Report 2019 345

RUPALI INVESTMENT LIMITED
STATEMENT OF FINANCIAL POSITION
As at 31 December 2019

Amount in Taka
Notes
31-Dec-19 31-Dec-18
ASSETS
Non-Current Assets
Property, plant and equipment 5 5,626,350 4,512,692
Intangible assets 6 377,025 472,411
Other Assets 7 32,886,007 16,749,186
Total non-current assets (A) 38,889,382 21,734,289
Current Assets
Cash and bank balance 8 68,545,986 202,429,892
Investment in FDR 49,988,000 -
Margin loan (Portfolio loan) 211,969,209 246,431,682
Accrued interest 3,026,357 -
Accrued dividend 1,717,740 -
Investment in share (own portfolio) 9 1,001,815,207 879,023,361
Advance Income Tax 10 28,890,735 25,514,292
Accounts receivable 11 1,259,670 117,276,036
Total current assets (B) 1,367,212,904 1,470,675,263
Total Assets (A+B) 1,406,102,286 1,492,409,552
EQUITY & LIABILITIES
Shareholders' Equity
Share capital 12 1,000,000,000 1,000,000,000
Retained earnings 13 100,369,379 86,450,279
Total shareholders' equity (C) 1,100,369,379 1,086,450,279
Non Current Liabilities
Deferred tax liabilities 14 493,478 548,749
Total non-current liabilities (D) 493,478 548,749
Current Liabilities
Accounts payable 15 8,567,525 131,361,181
Liabilities for expenses 16 17,923,126 16,728,300
Others Liabilities 17 200,365,220 180,399,174
Current tax liabilities 18 78,383,559 76,921,869
Total current liabilities(E) 305,239,430 405,410,523

Total Liabilities (F=D+E) 305,732,908 405,959,272

Total shareholders' equity and liabilities (C+F) 1,406,102,286 1,492,409,552

These financial statements should be read in conjunction with annexed notes 1 to 29.

Mostafa Shazzadul Haque Parsoma Alam

Chief Financial Officer Chief Executive Officer

Arun Kanti Paul Md. Obayed Ullah Al Masud

Director Chairman
Signed as per our annexed report of same date.

Dated, Dhaka M.J. ABEDIN & CO.

Thursday, June 04, 2020 Chartered Accountants

346
 Rupali Bank Limited

RUPALI INVESTMENT LIMITED

STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME
For the year ended on 31 December 2019

Amount in Taka
Notes
31-Dec-19 31-Dec-18
Income
Interest income 19 14,646,185 18,886,999
Realized gain Annex-B 13,655,400 11,286,722
Dividend Income 22,610,758 17,919,993
Fees and commission income 1,396,386 3,347,110
Other operating income 20 5,058,443 8,380,000
Total operating income (A) 57,367,172 59,820,824

Expenditure

Salary and allowances 21 9,030,221 10,782,660

Rent, taxes, Insurance, electricity etc. 22 5,419,066 5,680,037
Postage, stamp, telegram and telephone 23 215,949 170,690
Printing and stationery 79,996 86,726
CDBL & other expenses 756,391 577,122
Director remuneration 835,000 754,400
Depreciation and Amortization 24 1,165,395 1,112,566
Others expenses 25 3,343,860 3,126,930
Total operating expenditure (B) 20,845,878 22,291,130

Profit/(loss) before provision and Tax(C=A-B) 36,521,295 37,529,693

Provision for diminution in value of investment (D) Annex-B 10,000,000 11,400,000
Provision against negative equity (E) 17.b 5,000,000 3,190,693
Profit/(loss) before Tax(F=C-D-E) 21,521,295 22,939,001
Provision for taxation 8,409,515 7,880,211
Current tax 26 8,464,786 8,014,751
Deferred tax 14 (55,271) (134,540)
Net profit after tax and provision 13,111,780 15,058,790
Other comprehensive income - -
Total comprehensive income 13,111,780 15,058,790
Earning per share (EPS) 27 0.13 0.15

These financial statements should be read in conjunction with annexed notes 1 to 28.

Mostafa Shazzadul Haque Parsoma Alam

Chief Financial Officer Chief Executive Officer

Arun Kanti Paul Md. Obayed Ullah Al Masud

Director Signed as per our annexed report of same date. Chairman

Dated, Dhaka M.J. ABEDIN & CO.

Thursday, June 04, 2020 Chartered Accountants

Annual Report 2019 347

RUPALI INVESTMENT LIMITED
STATEMENT OF CHANGES IN EQUITY
For the year ended 31st December 2019

Particulars Notes Paid up Capital Retained Earnings Balance

Balance as at 01 January 2019 1,000,000,000 86,450,279 1,086,450,279

Adjustment made during the period 28 - 807,320 807,320
Net profit during the year - 13,111,780 13,111,780
Balance as at 31 December 2019 1,000,000,000 100,369,379 1,100,369,379

Balance as at 01 January 2018 1,000,000,000 71,391,489 1,071,391,489

Addition during the period - - -
Net profit during the period - 15,058,790 15,058,790
Balance as at 31 December 2018 1,000,000,000 86,450,279 1,086,450,279

These financial statements should be read in conjunction with annexed notes 1 to 29.

Mostafa Shazzadul Haque Parsoma Alam

Chief Financial Officer Chief Executive Officer

Arun Kanti Paul Md. Obayed Ullah Al Masud

Director Signed as per our annexed report of same date. Chairman

Dated, Dhaka M.J. ABEDIN & CO.

Thursday, June 04, 2020 Chartered Accountants

Monzur hosain

348
 Rupali Bank Limited

RUPALI INVESTMENT LIMITED

STATEMENT OF CASH FLOWS
For the year ended on 31 December 2019

Amount in Taka
Notes
31-Dec-19 31-Dec-18
A. Cash flows from operating activities:
Interest receipts 5,515,807 6,890,939
Advance income tax paid (4,781,049) (689,091)
Tax Payment for 2013-2014 (5,598,490) -
Management expenses (13,116,302) (19,818,954)
Clients Received/(Payments) Net 5,927,199 12,949,157
IPO Refund 41,511,040 -
Broker Received/(Payments) Net 90,633,777 35,026,994
Receipts/Payment for other operating activities - 890,000
Net cash from operating activities(A) 120,091,983 35,249,045

B. Cash flows from investing activities:

Purchase of Non Current Assets Annex-A (2,183,665) (176,616)
Purchase of Intangible Assets Annex-A - -
IPO Applications (66,437,700) -
Dividend receipts 17,821,727 16,156,464
Investment in FDR (Net ) (49,988,000) -
Investment in share (Net) (137,588,250) (38,592,043)
Other assets (15,600,000) -
Other Liabilities - -
Net cash from investing activities(B) (253,975,888) (22,612,195)
C. Cash flows from financing activities:
Share capital from Rupali Bank Limited - -
Loans and advances - -
Net cash used in financing activitie (C) - -

D. Net cash outflow for the period (A+B+C) (133,883,905) 12,636,851

Opening cash and bank balance 202,429,892 189,793,041

Closing cash and bank balance 68,545,987 202,429,892

These financial statements should be read in conjunction with annexed notes 1 to 29.

Mostafa Shazzadul Haque Parsoma Alam

Chief Financial Officer Chief Executive Officer

Arun Kanti Paul Md. Obayed Ullah Al Masud

Director Signed as per our annexed report of same date. Chairman

Dated, Dhaka M.J. ABEDIN & CO.

Thursday, June 04, 2020 Chartered Accountants

Annual Report 2019 349

RUPALI INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

1. Reporting Entity
Rupali Investment Ltd. is a subsidiary company of Rupali Bank Limited, incorporated as a public limited company on 27 October
2010 with the Registrar of Joint Stock Companies, Dhaka vide certificate of incorporation no. C-87824/10 dated 27 October 2010
which has also got its certificate of commencement on the same date. Securities and Exchange Commission (SEC) thereafter issued
a full fledged merchant banking license in favor of Rupali Investment Ltd, vide letter no. SEC/Reg/MB/SUB/15/2010/757 dated 09
August 2011 with effect from 09 August 2011. Rupali Bank Limited holds all the shares of the company except for eleven shares being
held by eleven individuals.

Principal Activities

The main objectives of the company are to act as, and carry on the business of, a merchant banker, portfolio manager and issue
manager and to engage in all types of merchant banking business, including issuing, under writing and portfolio management
of securities with the permission of competent authority; to act as fund manager to the issue, trustee to trusts and such other
intermediary services as required in the capital and securities markets; to finance, manage and underwrite as lead underwriter in
respect of initial public offerings (IPOs).

2. Basis of Preparation

2.1 Basis of presentation of financial statements

(a) The figures appearing in these Financial Statements have been rounded off to the nearest integer.

(b) The financial statements have been prepared on a going concern basis under historical cost convention in accordance
with International Financial Reporting Standards (IFRS), the Companies Act 1994, Bangladesh Securities and
Exchange Commission (Merchant Banker & Portfolio Manager) Rules 1996 and other applicable laws in Bangladesh.
Wherever appropriate, such principles are explained in related notes:

2.2 Reporting period

The accounting period of the company under audit covers twelve months from 1st January 2019 to 31 December 2019.

3. Significant Accounting Policies

Accounting policies set out below have been applied consistently to all periods presented in these financial statements.

3.1 Property, plant and equipment

3.1.1 Recognition and measurement

The cost of an item of property, plant and equipments (fixed assets) is recognized as an asset, if and only if it is probable that
future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably.
Property, plant and equipments have been accounted for at cost less accumulated depreciation, Cost includes expenditure
that is directly attributable to the acquisition of the items.
Subsequent cost of enhancement of an existing assets is recognized as a separate asset, only when it is probable that future
economic benefits associated with the item can be measured reliably. All other repair and maintenance are charged to the
statement of comprehensive income during the accounting period in which they are incurred.

3.1.2 Depreciation
Depreciation is recognized in the statement of comprehensive income annually on reducing balance method over the
estimated useful lives of each item of property, plant and equipment. In case of acquisition of fixed assets, depreciation has
been charged from the month of acquisition, whereas no depreciation on assets to be disposed off has been charged from
the month of disposal.

Rates of depreciation on various items of property, plant and equipment considering the useful lives of assets are as follows:

Asset category Rate of depreciation & amortization (%)

Furniture and fixtures 10%
Office and electrical equipment 20%
Other fixed assets 10%
Server License 50%
Motor vehicle 20%
Softwares 20%

350
 Rupali Bank Limited

RUPALI INVESTMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

3.2 Leases

The entity has not applied IFRS 16. The entity has classified leases as operating or finance leases based on its assessment of whether
the lease transferred significantly all the risk and rewards incidental to ownership to the underlying asset to the entity as per IAS 17.

3.3 Advance, deposits and prepayments

Advances are initially measured at cost. After initial recognition, advances are carried at cost less deductions, adjustments or charges
to other account heads such as property, plant and equipment etc.
Prepayments are initially measured at cost. After initial recognition, prepayments are carried at cost less charges to Statement of
Comprehensive Income.

3.4 Cash and bank balances

Cash and cash equivalents comprise cash in hand and bank balances in short term deposit, which were held and available for use
of the company without any restriction.

3.5 Statement of cash flows

Statement of cash flows has been prepared in accordance with the International Accounting Standard-7 “Statement of Cash Flows”
under direct method.

3.6 Investments

Investments in securities were recognised at cost, being fair value of the consideration given, including acquisition charges associated
with the investments. The valuation methods of investments used are:

3.6.1 Investment in listed securities

As per requirements of IFRS 9, investment in shares and securities generally falls either under at Fair Value Through Profit and
Loss (FVTPL) or Fair Value Through Other Comprehesive Income (FVOCI) where any change in the fair value (as measured in
accordance with IFRS 13 Fair Value Measurement) at the year end is taken to profit and loss account or revaluation reserve,
respectively.
As per Bangladesh Bank circular, these are acquired and held primarily for the purpose of selling them in future or held for
dividend income and are reported at cost. Unrealised gains are not recognised in the statement of comprehensive income.
Provision for diminution in value of investment is provided in the financial statements on those securities whose market
price is below the cost of investment.

3.7 Receivables

Receivables are recognized when there is a contractual right to receive cash or another financial asset from another entity.

3.8 Share capital

Ordinary shares are classified as equity when there is no contractual obligation to transfer cash or other financial assets.

3.9 Provision for current taxation

Provision for current income tax has been made @ 37.5% on business income and income from other sources as per Income Tax
Ordinance-1984.

3.10 Provision for Deferred Taxation

Deferred tax liabilities are amount of income taxes payable in future periods in respect of taxable temporary differences. Deferred
tax assets are the amount of income taxes recoverable in future periods in respect of deductible temporary differences. Deferred tax
assets and liabilities are recognized for the future tax consequences of timing differences arising between the carrying value of asset,
liabilities, income and expenditure and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates and
tax laws that have been enacted or substantially enacted at the date of statement of financial position. The impact on the account of
changes in the deferred tax assets and liabilities has also been recognized in the statement of comprehensive income as per IAS-12
“Income Taxes”. Details of deferred income tax are stated in note 14.

3.11 Provision for Liabilities

A provision is recognized in the statement of financial position when the company has a legal or constructive obligation as a result of
a past event and it is probable that an outflow of economic benefit will be required to settle the obligations, in accordance with the
IAS-37 “Provisions, Contingent Liabilities and Contingent Assets”.

Annual Report 2019 351

RUPALI INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

3.12 Revenue Recognition

3.12.1 Interest income

In terms of the provisions of IFRS-15 “Revenue from Contracts with Customers”, interest income is recognized on accrual
basis.

3.12.2 Dividend Income

In terms of the provisions of IFRS-15 “Revenue from Contracts with Customers”, dividend income is recognized when the
shareholder’s right to receive payment is established.

3.13 Earnings per share

Basic earnings per share

Basic earnings per share have been calculated in accordance with IAS-33 “Earnings per Share” which have been shown on the face
of statement of comprehensive income. This has been calculated by dividing the basic earnings by the number of ordinary shares
outstanding during the year.

3.14 Events after the reporting period

Where necessary, all the material events after the reporting period date have been considered and appropriate adjustment/
disclosures have been made in the financial statements.

3.15 Directors' responsibility on financial statements

The board of directors of the company is responsible for the preparation and presentation of these financial statements.

3.16 Related party transaction

Related party transaction is a transfer of resources, services or obligation between related parties and here the related party
transaction is a STD. A/C, CD. A/C and a FDR. A/C maintained with Local Office, Rupali Bank Limited.

3.17 Compliance report on International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS)

While preparing the financial statements, Rupali Investment Limited applied most of IASs and IFRSs applicable for the reporting
period as adopted by The Institute of Chartered Accountants of Bangladesh. Details are given below:

352
 Rupali Bank Limited

RUPALI INVESTMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Name of IAS No. Status

Presentation of Financial Statements 1 Applied
Inventories 2 N/A
Statement of Cash Flows 7 Applied
Accounting Policies, Changes in Accounting Estimates and Errors 8 N/A
Events after the Reporting Period 10 N/A
Construction Contracts 11 N/A
Income Taxes 12 Applied
Property, Plant and Equipment 16 Applied
Employee Benefits 19 Applied
Accounting for Government Grants and Disclosure of Government Assistance 20 N/A
The Effects of Changes in Foreign Exchange Rates 21 N/A
Borrowing Costs 23 N/A
Related Party Disclosures 24 Applied
Accounting and Reporting by Retirement Benefit Plans 26 N/A
Consolidated and Separate Financial Statements 27 N/A
Investment in Associates 28 N/A
Financial Reporting in hyperinflationary Economics 29 N/A
Earnings per Share 33 Applied
Interim Financial Reporting 34 N/A
Impairment of Assets 36 Applied
Provisions, Contingent Liabilities and Contingent Assets 37 Applied
Intangible Assets 38 Applied
Financial Instruments: Recognition and Measurement 39 Applied
Investment Property 40 N/A
Agriculture 41 N/A

Name of the IFRS No. Status

First-time adoption of Bangladesh Financial Reporting Standards 1 N/A
Share-based Payment 2 N/A
Business Combinations 3 N/A
Insurance Contracts 4 N/A
Non-current Assets Held for Sale and Discontinued Operations 5 N/A
Exploration for and Evaluation of Mineral Resources 6 N/A
Financial Instrument Disclosure 7 Applied
Operating Segments 8 N/A
Financial Instruments 9 Applied
Consolidated Financial Statements 10 N/A
Joint Arrangements 11 N/A
Disclosure of Interests in Other Entities 12 N/A
Fair Value Measurement 13 N/A
Revenue from Contracts with Customers 15 Applied
Leases 16 Applied

4. Provident Fund

“Rupali Investment Limited Employees Provident Fund” is maintained according to the First Schedule, Part B para-2 of the Income
Tax Ordinance 1984 (XXXVI of 1984). Members are required to contribute 10% of their basic salaries and the company makes a
matching contribution.

Annual Report 2019 353

RUPALI INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
31-Dec-2019 31-Dec-2018
4 Fixed Assets
Property, plant and equipment 5 5,626,350 4,512,692
Intangible Asset 6 377,025 472,411
6,003,375 4,985,103
5 Property, plant and equipment
Opening balance 12,445,624 12,269,008
Add: Addition during the period 2,183,665 176,616
Less: Disposal during the period - -
Closing balance (A) 14,629,289 12,445,624
Accumulated Depreciation:
Opening balance 7,932,931 6,940,726
Add: Addition during the period 1,070,008 992,206
Less: Disposal during the period - -
Closing balance (B) 9,002,939 7,932,932
Written down value (A-B) 5,626,350 4,512,692
6 Intangible Asset (Software and server license)
Opening balance 2,501,600 2,501,600
Add: Addition during the period - -
Less: Disposal during the period - -
Closing balance (A) 2,501,600 2,501,600
Accumulated Amortization:
Opening balance 2,029,189 1,908,829
Add: Addition during the period 95,386 120,360
Less: Disposal during the period - -
Closing balance (A) 2,124,575 2,029,189
Written down value (A-B) 377,025 472,411

7 Other assets

Security deposit 257,000 257,000

Suspenses Account 130,000 -
HBL-Md. Junaed Mia 8,368,682 8,232,620
HBL-Md. Shahriar Ishtiak Muntasir 8,430,084 8,259,566
HBL-Md. Rafiqul Islam 4,908,070 -
HBL-Mostafa Shazzadul Haque 8,611,961 -
ECL- Mostafa Shazzadul Haque 2,180,210 -
32,886,007 16,749,186
8 Cash and bank balance
Cash in hand 25,000 25,000
Cash at bank 68,520,986 202,404,892
Rupali Bank STD A/c (1733) 33,953,795 38,581,883
Rupali Bank STD A/c ( 1813) 19,644,157 128,204,940
Rupali Bank STD A/c ( 2053) 11,116,153 31,543,093
Rupali Bank CD (91811) 252,085 1,222,480
RIL-Provident Fund A/C: 24000223 3,554,796 2,852,496
68,545,986 202,429,892

9 Investment in shares (own portfolio) at cost

Portfolio Investment 981,853,262 867,970,855

IPO Receivables 10,175,000 -
Right Receivables 450,000 -
Portfolio Investment (RBSL) 9,336,945 11,052,506
354
1,001,815,207 879,023,361
 Rupali Bank Limited

RUPALI INVESTMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
31-Dec-2019 31-Dec-2018
10 Advance Income Tax
This is arrives as follows:
Opening Balance 25,514,292 21,072,452
During the year:
Advance income tax deducted on STD Account 421,154 689,091
Advance income tax deducted on dividend income 4,178,645 3,607,749
Advance income tax deducted on vehicle registration 35,000 35,000
Advance income tax deducted on FDR 146,250 -
Advance income tax deducted on Issue & Underwriting Commission - 110,000
Adjustment for the year 2012 (1,404,606) -
28,890,735 25,514,292
11 Accounts receivable
Receivable from ICB (Broker)-IDA - 115,188,509
Receivable from RBSL(Broker)-Own 1,259,670 1,894,149
Receivable from RBSL(Broker)-IDA - 193,378
1,259,670 117,276,036
12 Share Capital
Authorized Capital
50,00,00,000 ordinary Shares of Tk.10/- each 5,000,000,000 5,000,000,000
Paid-up Capital
Paid-up Capital as per subscription clause: 1,000,000,000 1,000,000,000
10,00,00,000 Shares of Tk.10/- each - -
Less: Capital not yet paid 1,000,000,000 1,000,000,000
13 Retained earnings
Opening balance 86,450,279 71,391,489
Adjustment made during the period 807,320 -
Add. Current year 13,111,780 15,058,790
100,369,379 86,450,279
14 Deferred Tax liabilities
Taxable Temporary Difference for PPE:
Carrying Value of Depreciable Fixed assets - Accounts Base 6,003,375 4,984,924
Carrying Value of Depreciable Fixed assets - Tax Base 4,687,434 3,521,593
(A)Taxable Temporary Difference for PPE 1,315,941 1,463,331
Applicable Tax Rate 37.50% 37.50%
Deferred Tax Liability 493,478 548,749
Deferred Tax Expenses/(Income) is arrived as follows:
Closing Deferred Tax Liabilities 493,478 548,749
Opening Deferred Tax Liabilities 548,749 683,289
Deferred Tax Expense/(Income) for the year (55,271) (134,540)
15 Accounts payable
Accounts payable to ICB (Own) - -
Payable to ICB(Broker)-IDA 1,293,181 121,960,149
Payable to RBSL(Broker)-IDA 168,583 831,205
Payable to RBSL(Broker)-OWN 6,852,083 8,223,088
Software maintenance expenses 60,000 72,628
Others payable 193,678 274,111
8,567,525 131,361,181

Annual Report 2019 355

RUPALI INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
31-Dec-2019 31-Dec-2018
16 Liabilities for expenses

Retirement benefit 11,142,932 9,599,754

Performance benefit 897,750 1,665,320
Electricity bill 979,172 1,457,061
Water & Swerege 113,870 184,994
CDBL expenses 278,601 12,670
Provision for Salary on Deputation 956,005 956,005
Providend fund contribution 3,554,796 2,852,496
17,923,126 16,728,300

17 Other liabilities

Sales receivable in transit (IDA) 1,702,857 1,847,951

Cheque in Transit - -
Payable to Clients 14,734,386 9,600,686
Interest receivable on portfolio IDA 23,062 -
Welfare Fund 870 48,150
Transport Fund 27,800 21,300
Stamps deducted from Employees 1,200 6,040
Provision for diminution in value of investment 17.a 148,875,046 138,875,046
Provision against negative equity 17.b 35,000,000 30,000,000
200,365,220 180,399,174
17.a Provision for diminution in value of investment

Opening balance 138,875,046 127,475,046

Add: Provision during the year Annex-C 10,000,000 11,400,000
148,875,046 138,875,046
According to the BSEC directive ref.no SEC/CMRRCD/2009-193/166, a cumulative provision has been made @ 38 % for unrealized loss
on the own portfolio investment with ICB as at 31 December 2019.
17.b Provision against negative equity

Opening balance 30,000,000 26,809,307

Add: Provision during the year 5,000,000 3,190,693
35,000,000 30,000,000

18 Current tax liabilities

Opening balance 76,921,869 68,907,118

Add: Current tax liability (Note-27) 8,464,786 8,014,751
less: Adustment during the year 7,003,096 -
78,383,559 76,921,869

19 Interest income

Interest on portfolio loan-IDA 9,468,852 18,084,053

Interest on FDR 4,087,500 -
Interest on SHBL 1,089,833 802,946
14,646,185 18,886,999

356
 Rupali Bank Limited

RUPALI INVESTMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
31-Dec-2019 31-Dec-2018
20 Other income /other operating income

Bank interest income A/C: 1813 2,600,083 3,444,989

Bank interest income A/C: 1733 998,574 2,220,987
Bank interest income A/C: 2053 1,014,265 1,224,963
Documentation charge-IDA 32,500 16,000
Miscellaneous income - -
Issue Management - 900,000
Underwriting commission - 100,000
Service Charge 386,500 393,000
BO Account Closing Fees 26,521 80,061
5,058,443 8,380,000

21 Salary and allowances

Basic salary 3,511,500 3,315,903

House rent allowance 1,844,964 1,749,303
Medical allowance 180,000 193,600
Conveyance allowance (salary) 18,000 18,000
Washing allownace 6,000 6,000
Over time 338,379 340,908
Children allowance 48,000 40,000
Salary & allowances on Deputation - 2,956,340
Leave fare assistance - 48,130
Bonus & Incentive 1,540,200 1,114,476
Retirement benefit 1,543,178 1,000,000
9,030,221 10,782,660

22 Rent, taxes, insurance, electricity etc.

Rent expenses 4,250,952 4,250,952

Vehicle fuel & Maintenance 595,114 923,585
Electricity bill 510,000 450,000
Water & Sewerage 63,000 55,500
5,419,066 5,680,037

23 Postage, stamp, telegram and telephone

Postage and stamps 21,500 1,450
Telephone & Mobile bill 194,449 169,240
215,949 170,690

24 Depreciation and amortization

Depreciation 1,070,009 992,206
Amortization 95,386 120,360
1,165,395 1,112,566

Annual Report 2019 357

RUPALI INVESTMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Taka
Particulars Notes
31-Dec-2019 31-Dec-2018
25 Others expenses
Welfare and recreation 581,000 584,800
Conveyance & allowance 9,645 15,825
Entertainment 180,943 123,974
Repairs and maintenance 37,530 92,675
Computer maintenance expenses 67,598 27,082
P.O.L expenses 1,325 -
Advertisement 66,585 -
Traveling expenses 32,450 -
Training expenses 64,680 -
Fees & Charges 157,500 369,577
Internet expenses 107,863 115,250
Board meeting expenses 255,965 211,817
AGM expenses 221,962 217,550
Advisors Salary 248,548 -
Security Guard 123,300 124,200
Business development expenses 130,105 137,595
Audit fees 80,500 57,500
Uniform & Leverage 37,996 27,020
Cleaning expenses 41,318 28,800
News paper and periodicals 21,830 15,143
Bidding Fess 18,000 48,000
Bank charges & Excise Duty 106,183 70,005
Providend fund contribution 351,150 616,731
Software maintenance expenses 157,372 206,000
Executive Car Allowance 200,000 -
Website development & Maintenance 6,300 -
Miscellaneous expenses 36,212 37,386
3,343,860 3,126,930
26 Current tax expenses
Heads of Income Amount Rate Tax Liability Tax Liability
Business income 37.5% 420,642 3,302,080
Capital gain 10% 1,365,540 1,128,672
Cash Dividend 20% 4,178,604 3,583,999
Extra Provision for Tax 2,500,000 -
Total 8,464,786 8,014,751
27 Earnings per share (EPS)
Total comprehensive income (A) 13,111,780 15,058,790
Weighted Average Number of Shares (B) 100,000,000 100,000,000
EPS (A/B) 0.13 0.15
28 Retained Earnings Adjustment
Provision for Bonus & Incentive 807,320 -
- -
807,320 -

358
 RUPALI INVESTMENT LIMITED
SCHEDULE OF DEPRECIATION
As at 31 December 2019
Annexure-A

Cost Depreciation Written down

value as on
Particulars Adjustment/ Rate Charges Adjustment/
Balance as on Addition during Balance as on Balance as on Balance as on 31.12.2019
Disposal during during the Disposal during
01.01.2019 the period 31.12.2019 01.01.2019 31.12.2019
the period % period the period
1 2 3 4 5=(2+3+4) 6 7 8 9 10=(7+8-9) 11=(5-10)
Furniture and fixture 860,269 309,636 - 1,169,905 10% 344,855 62,271 - 407,126 762,779
Office fitting & renovation 930,688 - - 930,688 10% 496,673 43,401 - 540,074 390,614
Office equipment 3,412,249 1,874,029 5,286,278 20% 2,450,038 444,128 - 2,894,166 2,392,112
Motor Vehicle 7,242,418 - 7,242,418 20% 4,641,365 520,209 - 5,161,574 2,080,843
12,445,624 2,183,665 - 14,629,289 7,932,931 1,070,009 - 9,002,940 5,626,348

Schedule of Amortization
As at 31 December 2019

Server License 330,000 - - 330,000 50% 326,994 1,504 - 328,498 1,502

Software 2,171,600 - - 2,171,600 20% 1,702,195 93,882 - 1,796,077 375,522
2,501,600 - - 2,501,600 2,029,189 95,386 - 2,124,575 377,024

Annual Report 2019

Rupali Bank Limited

359
RUPALI INVESTMENT LIMITED
INVESTMENT IN SHARES (OWN PORTFOLIO)
As at 31 December 2019
Annexure-B
Average Market
Sl. No. Company Name No.of Shares Total Cost Market Value Gain/Loss
Price Price
1 ABBANK 200,000 23 4,682,013 8 1,580,000 (3,102,013)
2 BANKASIA* 1,500 18 27,255 18 27,300 45
3 BRACBANK* 200 58 11,617 57 11,420 (197)
4 CITYBANK* 420,000 44 18,639,358 21 8,862,000 (9,777,358)
5 DHAKABANK* 463,018 17 8,056,351 12 5,556,216 (2,500,135)
6 EBL* 23,000 35 794,690 33 763,600 (31,090)
7 EXIMBANK* 401,148 15 6,072,071 10 4,051,595 (2,020,476)
8 IFIC* 2,475,000 8 20,875,691 10 24,502,500 3,626,809
9 ISLAMIBANK* 370,000 39 14,340,204 19 7,067,000 (7,273,204)
10 JAMUNABANK* 154,000 20 3,098,941 19 2,849,000 (249,941)
11 MERCANBANK* 500,000 15 7,570,880 13 6,600,000 (970,880)
12 NBL* 1,540,000 12 17,758,710 8 12,474,000 (5,284,710)
13 NCCBANK* 720,000 16 11,536,043 12 8,640,000 (2,896,043)
14 PREMIERBAN* 55,000 12 648,878 13 687,500 38,622
15 PUBALIBANK* 103,000 27 2,742,785 24 2,472,000 (270,785)
16 SOUTHEASTB* 750,000 17 12,500,690 13 10,050,000 (2,450,690)
17 UCB* 110,000 18 1,956,428 13 1,463,000 (493,428)
18 UTTARABANK* 688,500 36 24,734,190 27 18,727,200 (6,006,990)
19 HEIDELBCEM* 22,024 402 8,854,375 165 3,629,555 (5,224,819)
20 LHBL 600,000 90 54,154,820 34 20,160,000 (33,994,820)
21 PREMIERCEM* 32,500 96 3,106,144 44 1,436,500 (1,669,644)
22 WATACHEM 300 375 112,619 366 109,740 (2,879)
23 RAKCERAMIC* 456,700 53 24,304,695 29 13,107,290 (11,197,405)
24 ADNTEL 18,968 30 569,040 0 569,040 -
25 COPPERTECH 4,979 10 47,420 24 117,009 69,589
26 RUNNERAUTO 7,566 71 540,450 60 450,195 (90,255)
27 AFTABAUTO* 57,879 41 2,390,127 24 1,412,248 (977,880)
28 APOLOISPAT 1,246,300 20 25,190,101 4 4,860,570 (20,329,531)
29 BBSCABLES* 47,500 79 3,743,878 59 2,793,000 (950,878)
30 BDLAMPS 5,296 177 935,900 126 666,237 (269,663)
31 BDTHAI* 188,125 26 4,822,817 10 1,956,500 (2,866,317)
32 BENGALWTL* 50,000 40 1,995,785 17 845,000 (1,150,785)
33 BSRMLTD* 54,749 74 4,031,840 49 2,671,751 (1,360,089)
34 BSRMSTEEL* 105,572 69 7,246,754 39 4,138,422 (3,108,331)
35 DESHBANDHU* 100,000 20 2,037,513 11 1,110,000 (927,513)
36 GOLDENSON 325,000 29 9,263,839 7 2,177,500 (7,086,339)
37 GPHISPAT* 141,551 32 4,579,167 26 3,666,158 (913,010)
38 IFADAUTOS* 68,026 95 6,469,045 46 3,142,801 (3,326,243)
39 NAHEEACP* 78,068 43 3,383,322 37 2,857,296 (526,026)
40 NAVANACNG* 48,125 57 2,765,773 34 1,655,500 (1,110,273)
41 NPOLYMAR* 3,000 64 192,639 62 185,700 (6,939)
42 NTLTUBES 2,420 176 424,836 120 291,368 (133,468)
43 OAL* 196,108 21 4,157,632 6 1,235,480 (2,922,152)
44 OLYMPIC* 9,200 202 1,855,208 165 1,518,000 (337,208)
45 QUASEMIND* 53,500 51 2,704,025 37 1,958,100 (745,925)
46 RSRMSTEEL* 75,038 49 3,699,626 24 1,763,393 (1,936,233)
47 SALAMCRST* 135,550 38 5,090,764 21 2,778,775 (2,311,989)
48 SINGERBD* 3,718 173 642,432 180 670,727 28,296
49 WMSHIPYARD* 145,176 26 3,772,150 11 1,625,971 (2,146,179)

360
 Rupali Bank Limited

RUPALI INVESTMENT LIMITED

INVESTMENT IN SHARES (OWN PORTFOLIO)
As at 31 December 2019
Annexure-B
Average Market
Sl. No. Company Name No.of Shares Total Cost Market Value Gain/Loss
Price Price
50 APSCLBOND 2,035 5,000 10,175,000 0 10,175,000 -
51 BDFINANCE* 100,016 15 1,548,033 10 1,000,160 (547,873)
52 DBH* 27,933 118 3,300,104 114 3,192,742 (107,362)
53 GSPFINANCE* 113,000 19 2,155,078 15 1,717,600 (437,478)
54 ICB* 80,850 138 11,184,362 77 6,209,280 (4,975,082)
55 IDLC* 139,000 68 9,517,631 45 6,310,600 (3,207,031)
56 IPDC* 118,000 26 3,069,206 26 3,020,800 (48,406)
57 ISLAMICFIN* 30,900 20 618,927 15 475,860 (143,067)
58 LANKABAFIN* 175,000 36 6,292,611 18 3,150,000 (3,142,611)
59 PHOENIXFIN* 45,077 26 1,178,359 22 969,156 (209,203)
60 UNITEDFIN* 151,323 20 3,052,996 17 2,617,888 (435,108)
61 UTTARAFIN* 42,944 65 2,770,305 55 2,361,920 (408,385)
62 BANGAS 500 175 87,371 136 68,000 (19,371)
63 BATBC* 7,600 1,345 10,218,378 970 7,371,240 (2,847,138)
64 GEMINISEA 1,265 358 453,459 172 217,074 (236,385)
65 GHAIL* 108,000 25 2,718,520 19 2,073,600 (644,920)
66 BARKAPOWER* 127,972 34 4,300,565 23 2,904,964 (1,395,600)
67 BDWELDING 41,543 23 937,966 16 664,688 (273,278)
68 DESCO* 240,000 60 14,482,728 37 8,880,000 (5,602,728)
69 DOREENPWR* 88,884 70 6,207,809 59 5,235,241 (972,569)
70 GBBPOWER* 68,250 22 1,492,235 14 955,500 (536,735)
71 JAMUNAOIL* 86,000 184 15,839,587 142 12,203,400 (3,636,187)
72 KPCL* 115,000 60 6,928,828 47 5,370,500 (1,558,328)
73 LINDEBD* 1,819 1,312 2,386,948 1,299 2,362,881 (24,067)
74 MJLBD* 94,029 112 10,553,916 63 5,952,036 (4,601,881)
75 MPETROLEUM* 200,000 242 48,390,011 164 32,760,000 (15,630,011)
76 PADMAOIL* 196,923 272 53,648,216 192 37,848,601 (15,799,616)
77 SUMITPOWER* 120,000 41 4,954,220 36 4,356,000 (598,220)
78 TITASGAS* 537,950 62 33,246,229 31 16,622,655 (16,623,574)
79 UPGDCL* 1,500 261 391,246 245 367,950 (23,296)
80 AGNISYSL* 270,000 23 6,231,264 15 4,077,000 (2,154,264)
81 BDCOM* 53,424 30 1,611,373 21 1,111,219 (500,154)
82 GENEXIL 2,618 10 26,180 67 176,453 150,273
83 DELTALIFE 218,000 203 44,279,629 79 17,113,000 (27,166,629)
84 EASTERNINS* 5,798 48 275,741 39 224,962 (50,778)
85 FAREASTLIF* 210,000 77 16,220,788 50 10,416,000 (5,804,788)
86 GREENDELT* 115,191 57 6,543,093 52 6,012,970 (530,123)
87 MEGHNALIFE* 65,000 64 4,184,586 52 3,360,500 (824,086)
88 NORTHRNINS 100,000 30 3,038,274 25 2,520,000 (518,274)
89 PHENIXINS* 42,707 37 1,564,100 27 1,148,818 (415,281)
90 NORTHERN 200 767 153,448 711 142,200 (11,248)
91 MIRACLEIND* 50,000 41 2,045,143 23 1,170,000 (875,143)
92 FBFIF* 1,693,100 6 10,528,111 4 6,264,470 (4,263,641)
93 ICB3RDNRB* 1,300,000 7 9,595,016 5 5,980,000 (3,615,016)
94 ICBAMCL2ND* 110,050 9 961,179 8 847,385 (113,794)
95 IFILISLMF1* 233,897 8 1,829,751 5 1,263,044 (566,707)
96 NLI1STMF* 172,423 11 1,851,241 11 1,827,684 (23,557)
97 PF1STMF* 60,609 6 333,349 6 333,349 0
98 SEBL1STMF* 22,287 10 217,981 10 222,870 4,889
99 AMANFEED* 200,385 50 10,099,122 28 5,650,857 (4,448,265)

Annual Report 2019 361

RUPALI INVESTMENT LIMITED
INVESTMENT IN SHARES (OWN PORTFOLIO)
As at 31 December 2019
Annexure-B

Average Market
Sl. No. Company Name No.of Shares Total Cost Market Value Gain/Loss
Price Price
100 BEXIMCO* 330,000 30 9,820,604 14 4,554,000 (5,266,604)
101 GQBALLPEN 36,052 143 5,169,291 72 2,584,928 (2,584,363)
102 KDSALTD* 57,750 52 3,007,649 39 2,258,025 (749,624)
103 NFML* 154,075 19 2,950,041 9 1,386,675 (1,563,366)
104 UNITEDAIR 1,600,000 9 14,232,693 1 2,240,000 (11,992,693)
105 SILCOPHL 8,023 9 72,940 30 243,109 170,169
106 SILVAPHL* 20,577 23 480,109 17 345,694 (134,416)
107 ACIFORMULA* 56,000 168 9,420,094 92 5,135,200 (4,284,894)
108 ACMELAB* 70,000 86 6,007,356 61 4,263,000 (1,744,356)
109 ACTIVEFINE* 200,700 28 5,638,497 15 2,950,290 (2,688,207)
110 AFCAGRO* 330,000 36 12,032,471 20 6,600,000 (5,432,471)
111 LIBRAINFU 517 974 503,488 658 340,031 (163,457)
112 ORIONPHARM* 600,000 54 32,288,069 27 16,140,000 (16,148,069)
113 SQURPHARMA* 129,470 245 31,779,728 190 24,599,300 (7,180,428)
114 SEAPEARL 3,917 10 37,300 41 161,751 124,451
115 SAIFPOWER* 228,960 30 6,854,126 13 3,068,064 (3,786,062)
116 UNIQUEHRL* 494,485 77 37,974,300 44 21,707,892 (16,266,408)
117 ESQUIRENIT 20,890 46 955,594 28 591,187 (364,407)
118 NEWLINE 3,757 10 37,570 15 55,604 18,034
119 RINGSHINE 100,530 10 1,005,300 10 1,035,459 30,159
120 APEXTANRY 10,000 138 1,384,861 117 1,168,000 (216,861)
121 BATASHOE* 3,020 948 2,861,928 696 2,102,222 (759,706)
122 FORTUNE* 561,200 38 21,282,680 23 12,907,600 (8,375,080)
123 BSCCL 33,000 159 5,241,930 94 3,095,400 (2,146,530)
124 GP* 17,000 329 5,593,595 286 4,858,600 (734,995)
125 ACFL* 68,500 57 3,885,653 21 1,445,350 (2,440,303)
126 ALIF* 108,000 12 1,296,943 7 745,200 (551,743)
127 CNATEX 255,208 10 2,530,349 2 459,374 (2,070,975)
128 ETL 276,045 18 5,056,749 10 2,650,032 (2,406,717)
129 FAMILYTEX 385,875 9 3,355,025 2 771,750 (2,583,275)
130 FEKDIL* 225,803 23 5,211,312 9 2,032,223 (3,179,090)
131 MAKSONSPIN* 300,000 9 2,565,002 4 1,320,000 (1,245,002)
132 MITHUNKNIT 10,900 53 580,980 9 93,740 (487,240)
133 PDL* 100,000 17 1,748,821 10 980,000 (768,821)
134 SQUARETEXT* 150,083 45 6,793,477 31 4,652,573 (2,140,904)
Total 992,478,262 598,764,547 (393,713,716)
Net Investment in RBSL ( Code # 508 ) 4,317,140 5,974,626 1,657,486
Grand Total 996,795,402 604,739,172 (392,056,230)
Opening Balance of Provision for diminuation in value of investment 138,875,046
Provision made during the year for diminuation in value of investment 10,000,000
Closing Balance of Provision for diminuation in value of investment 148,875,046
Percentage of Provision for diminuation in value of investment 38%

362
 Rupali Bank Limited

RUPALI INVESTMENT LIMITED

STATEMENT OF REALIZED GAIN & LOSS ON INVESTMENT IN SHARES
From 1st January 2019 to 31st December 2019
Annexure-C

Sl. No. of Purchase Capital Gain/

Company Name Rate Sale Amount Pur Rate
No. Shares Amount (Loss)
1 ACIFORMULA 460 143.91 66,201 177.71 81,747 (15,547)
2 AGRANINS 2,040 41.84 85,348 35.95 73,346 12,002
3 AL-HAJTEX 17,000 101.36 1,723,071 96.78 1,645,227 77,844
4 APEXSPINN 929 131 121,697 128.49 119,369 2,328
5 APEXTANRY 5,485 149.68 820,998 140.2 769,007 51,992
6 ASIAINS 110,700 25.48 2,820,792 24.38 2,699,262 121,530
7 ATLASBANG 1,990 150.66 299,821 142.73 284,026 15,794
8 BANGAS 3,550 304 1,079,194 288.51 1,024,214 54,980
9 BANKASIA 135,127 19.71 2,663,815 17.47 2,360,651 329,305
10 BBSCABLES 43,400 102.72 4,458,180 96.03 4,167,721 290,459
11 BDCOM 40,000 31.85 1,273,854 29.02 1,160,600 113,254
12 BDFINANCE 20,000 21.37 427,358 19.83 396,594 30,764
13 BEACONPHAR 130,000 23.88 3,104,836 21.77 2,829,914 274,922
14 BPML 10,807 90.78 981,007 80 864,560 116,447
15 BRACBANK 5,000 59.81 299,051 54.33 271,637 27,414
16 BSC 138,662 48.37 6,706,497 44.97 6,236,304 470,193
17 BSCCL 178,783 171.3 30,624,638 164.66 29,439,167 1,185,470
18 CAPMIBBLMF 10,000 10.38 103,844 11.02 110,165 (6,321)
19 CENTRALPHL 50,000 16.77 838,740 15.72 786,178 52,563
20 CNATEX 94,792 1.92 182,331 9.91 939,848 (757,518)
21 CONTININS 45,000 28.76 1,294,228 24.81 1,116,422 177,806
22 COPPERTECH 4,741 41.17 195,189 10 47,410 147,779
23 DOREENPWR 22,042 92.34 2,035,347 88 1,939,657 95,691
24 DUTCHBANGL 18,136 158.86 2,881,011 147.55 2,675,906 205,104
25 EASTERNINS 4,702 49.55 232,999 48.21 226,662 6,337
26 ESQUIRENIT 25,890 48.11 1,245,639 45.15 1,168,837 76,801
27 GENEXIL 7,849 47.46 372,529 10 78,490 294,039
28 GP 1,500 383.62 575,436 366.96 550,447 24,988
29 GPHISPAT 71,500 37.75 2,698,811 35.68 2,550,991 147,821
30 GREENDELT 42,266 61.11 2,582,846 62.78 2,653,480 146,393
31 IBNSINA 15,423 267.22 4,121,264 262.25 4,044,692 76,572
32 IBP 294 34.65 10,187 9.09 2,673 7,514
33 ICBAMCL2ND 1,500 8.89 13,330 8.73 13,101 229
34 IDLC 52,000 74.35 3,866,092 70.66 3,674,127 191,965
35 IFIC 375,000 11.73 4,398,393 8.57 3,213,986 1,184,406
36 INTRACO 266 28.96 7,702 9.52 2,533 5,169
37 IPDC 113 26.46 2,990 26.01 2,940 50
38 ISLAMICFIN 10,000 23.07 230,654 21.38 213,820 16,833
39 ITC 5,000 51.62 258,112 49.47 247,371 10,742
40 JAMUNAOIL 47,262 202.01 9,547,374 198.03 9,359,061 188,314
41 JMISMDL 500 402.5 201,248 340.81 170,405 30,842
42 KARNAPHULI 42,928 20.86 895,671 17.69 759,513 136,158
43 KDSALTD 29,123 62.83 1,829,893 57.27 1,667,788 162,105
44 KTL 11,070 22.13 244,983 9.09 100,636 144,346

Annual Report 2019 363

RUPALI INVESTMENT LIMITED
STATEMENT OF REALIZED GAIN & LOSS ON INVESTMENT IN SHARES
From 1st January 2019 to 31st December 2019
Annexure-C

Sl. No. of Purchase Capital Gain/

Company Name Rate Sale Amount Pur Rate
No. Shares Amount (Loss)
45 LINDEBD 850 1,346.85 1,144,820 1,320.23 1,122,192 22,628
46 MEGHNALIFE 2,000 89.17 178,332 87.23 174,461 3,871
47 MERCANBANK 110,000 19.71 2,168,233 18.67 2,053,518 114,715
48 MLDYEING 4,228 34.8 147,155 8.33 35,233 111,922
49 MONNOCERA 2,000 264.62 529,246 253.78 507,552 21,694
50 NAHEEACP 23,871 55.35 1,321,289 51.13 1,220,639 100,650
51 NEWLINE 11,269 19.24 216,849 10 112,690 104,159
52 NFML 5,000 9.49 47,429 19.15 95,734 (48,305)
53 NHFIL 5,000 61.31 306,540 55.83 279,158 27,381
54 NLI1STMF 10,000 11.98 119,820 10.82 108,162 11,658
55 NORTHERN 150 827.52 124,129 796.37 119,456 4,673
56 NPOLYMAR 45,700 85.99 3,929,694 81.82 3,738,981 190,713
57 NTC 907 820.87 744,527 786.72 713,555 30,972
58 NTLTUBES 10,750 119.23 1,281,774 116.2 1,249,121 32,654
59 OLYMPIC 13,196 242.97 3,206,233 234.36 3,092,559 113,674
60 PARAMOUNT 27,000 24.8 669,550 23.4 631,846 37,704
61 PF1STMF 1,001,183 8.46 8,471,602 7.37 7,379,045 1,092,557
62 POWERGRID 20,000 55.67 1,113,328 50.93 1,018,526 94,802
63 PREMIERBAN 810,250 15.24 12,346,977 13.15 10,658,413 1,688,564
64 PRIMELIFE 93,604 68.63 6,424,036 63.92 5,983,336 440,700
65 PUBALIBANK 8,342 28.76 239,889 27.42 228,748 11,142
66 QUASEMIND 21,500 56.79 1,221,066 54.87 1,179,733 41,333
67 RINGSHINE 100,530 15.79 1,587,565 10 1,005,300 582,265
68 RUNNERAUTO 7,205 100.42 723,514 75 540,375 183,139
69 SANDHANINS 20,000 35.57 711,431 33.35 666,999 44,432
70 SEAPEARL 3,730 31.34 116,894 10 37,300 79,594
71 SEBL1STMF 50,000 9.98 499,250 9.8 489,903 9,347
72 SILCOPHL 7,293 25.64 186,984 10 72,930 114,054
73 SILVAPHL 4,596 35 160,878 10 45,960 114,918
74 SINGERBD 16,000 216.46 3,463,335 204.48 3,271,687 191,648
75 SKTRIMS 5,545 45.88 254,386 42.88 237,747 16,639
76 SSSTEEL 13,492 37.66 508,158 10 134,920 373,238
77 UCB 61,001 20.05 1,222,983 19.69 1,201,256 21,726
78 UNITEDFIN 472,500 26.79 12,659,782 23.58 11,143,402 1,516,380
79 UPGDCL 2,800 301.78 844,981 293.25 821,110 23,871
80 VFSTDL 68,222 57.94 3,953,052 54.93 3,747,238 205,814
81 WATACHEM 100 607.84 60,784 581.87 58,187 2,597
Total 13,655,400

364
Rupali Bank Limited

Annual Report 2019 365

INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS’ OF
RUPALI BANK SECURITIES LIMITED
Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Rupali Bank Securities Limited. (the “Company”), which comprise the Statement of Financial
Position as at 31 December 2019 and the Statement of Profit or Loss and Other Comprehensive Income, Statement of Change in Equity and
Statement of Cash flows for the year then ended 31 December 2019 and a summary of significant accounting policies and other explanatory
information.

In our opinion, the accompanying financial statements present fairly, in all material respect, the financial position of the company as at 31
December 2019, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting
Standards (IFRSs) and comply with The Companies Act, 1994, and other applicable laws and regulations.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the company
in accordance with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA Code), together
with the ethical requisition that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in
accordance with the IESBA Code and the Institute of Chartered Accountants of Bangladesh (ICAB) By Laws. We believe that the audit evidence
we have obtained is reasonably sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements and internal controls

Management is responsible for the preparation and fair presentation of the financial statements in accordance IASs with IFRSs applicable
sections of The Companies Act, 1994, and other applicable laws and regulations and for such internal control as management determines is
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the company ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate
the company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the company financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but
is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional Skepticism throughout the audit. We
also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by management but not for the purpose expressing an opinion on the effectiveness of internal control.

Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures
in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.

366
 Rupali Bank Limited

INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS’ OF

RUPALI BANK SECURITIES LIMITED
Report on the Audit of the Financial Statements

We communication with the those charged with Governance regarding among other matter, the planned scope and timing of the audit and
significant audit , including any significant deficiency in internal control that we identify during our audit.

Report on Other Legal and Regulatory Requirements

In accordance with International Financial Reporting Standards (IFRSs), The Companies Act, 1994, the Security and Exchange ordinance, 1969
and other applicable laws and regulations, we also report that:

a) we have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our
audit and made due verification thereof;

b) in our opinion, proper books of account as required by law have been kept by the company so far as it appeared from our examination of
those books; and

c) the Company’s Statement of financial position and the Statement of Profit or Loss and Other Comprehensive Income together with the
annexure notes dealt with by report are in agreement with the book of account and returns;

d) the expenditures incurred were for the purpose of the Company’s business.

Dated, Dhaka Mahfel Huq & Co.

Wednesday, June 24, 2020 Chartered Accountants

Annual Report 2019 367

RUPALI BANK SECURITIES LIMITED
STATEMENT OF FINANCIAL POSITION
As at 31 December 2019

Amount in Taka
Particulars Notes
31 Dec 2019 31 Dec 2018
ASSETS
Non-Current Assets
Property, Plant and Equipment 5 8,395,314 7,550,250
Intangible Assets 6 15,625 31,250
Deffered Tax Assets 7 90,306 16,228
Investment in DSE Share 8 282,320,683 282,320,683
Total non-current Assets (A) 290,821,928 289,918,411

Current Assets
Cash and Cash Equivalents 9 73,328,032 74,244,376
Investment 10 566,882,857 532,031,355
Loans 11 265,244,885 258,444,715
Advances, deposits and prepayments 12 39,851,956 31,483,160
Accounts Receivables 13 2,908,346 8,205,159
Total Current Assets (B) 948,216,076 904,408,764

Total Assets (A+B) 1,239,038,003 1,194,327,175

EQUITY & LIABILITIES

Shareholders' Equity
Share Capital 14.02 1,030,000,000 1,000,000,000
Retained Earnings 15 33,097,730 53,005,672
Total shareholders' Equity (C) 1,063,097,730 1,053,005,672

Total non-Current Liabilities (D)

Deffered Tax Liabilities 16 - -

Current Liabilities
Accounts Payable 17 23,899,935 16,930,836
Other Liabilities 18 106,988,828 92,216,706
Provision for Tax 19 45,051,510 32,173,961
Total Current Liabilities (E) 175,940,273 141,321,502
Total Liabilities (F=D+E) 175,940,273 141,321,502

Total shareholders' Equity & Liabilities (C+F) 1,239,038,003 1,194,327,175

The anexed notes form an integral part of there financial statements

Kazi Mohammad Abdul Bashed Ariful Islam Wahida Begum

Head of Accounts Company Secretary Chief Executive Officer

Mohammad Jahangir Alam Md. Obayed Ullah Al Masud

Director Chairman

Signed in terms of our separate report of even date annexed

Dated, Dhaka Mahfel Huq & Co.

Wednesday, June 24, 2020 Chartered Accountants

368
M
 Rupali Bank Limited

RUPALI BANK SECURITIES LIMITED

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 31 December 2019

Amount in Taka
Particulars Notes
31 Dec 2019 31 Dec 2018
Income
Fees & Commission Income 20 9,540,036 10,076,013
Interest & Financial Income 21 38,273,122 26,349,387
Cash Dividend Income 22 9,360,648 14,543,674
Capital Gain 23 5,945,980 9,038,821
Total Operating Income (A) 63,119,786 60,007,896

Expenditure
Salary and Allowances 24 15,501,861 15,744,726
Printing, stationery & Advertisement 25 93,972 133,557
Directors Fees and Expenses 26 487,200 478,400
Depreciation, Repair and Maintanance of Assets 27 2,006,243 1,715,891
DSE and CDBL Expenses 28 1,706,322 1,645,149
Rent, Taxes, Insurance, Electricity etc 29 4,067,002 6,091,673
Postage, Telecommunication, Network etc. 30 662,640 570,514
Audit Fees 31 57,500 80,500
Legal, Advisory and Professional Expenses 32 36,664 36,525
Others Expenses 33 3,063,688 2,519,997
Total Expenditure (B) 27,683,092 29,016,933
Profit/(loss) before provision and Tax(C=A-B) 35,436,694 30,990,963
Provisions (D) 14,251,434 8,759,774
Provision for Diminution in Value of Investment 18.01 11,200,000 8,500,000
Provision against margin Loan/Negative Equity 18.02 3,051,434 259,774
Profit/(loss) before tax (E=C-D) 21,185,260 22,231,190
Provision for Taxation 11,093,202 7,156,093
Current Tax 34 11,167,280 7,229,277
Deferred Tax Expense/(Income) 7 (74,077) (73,184)
Net Profit after Tax and Provision 10,092,058 15,075,097
Other Comprehensive Income - -
Total Comprehensive Income 10,092,058 15,075,097
Profit/(Loss) for the Period 10,092,058 15,075,097
Earnings per Share (EPS) 35 0.10 0.15

The annexed notes form an integral part of there financial statements

Kazi Mohammad Abdul Bashed Ariful Islam Wahida Begum

Head of Accounts Company Secretary Chief Executive Officer

Mohammad Jahangir Alam Md. Obayed Ullah Al Masud

Director Chairman

Signed in terms of our separate report of even date annexed

Dated, Dhaka Mahfel Huq & Co.

Wednesday, June 24, 2020 Chartered Accountants

Annual Report 2019 369

M
RUPALI BANK SECURITIES LIMITED
STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2019

Paid up Capital
Particulars General Reserve Retained Earnings Balance
Taka
Balance as at 01 January 2019 1,000,000,000 - 53,005,672 1,053,005,672
Bonus Share 30,000,000 (30,000,000) -
Restated Balace as at 1st January 2019 1,030,000,000 - 23,005,672 1,053,005,672
Balance as at 01 January 2019 1,030,000,000 - 23,005,672 1,053,005,672
Adjustment during the year - - - -
Received arrear paid up capital - - - -
Net profit during the Period - - 10,092,058 10,092,058
Balance as at 31st December 2019 1,030,000,000 - 33,097,730 1,063,097,730

Balance as at 01 January 2018 1,000,000,000 37,930,575 1,037,930,575

Adjustment during the year - - - -
Received arrear paid up capital - - - -
Net profit during the Period - - 15,075,097 15,075,097
Balance as at 31st December 2018 1,000,000,000 - 53,005,672 1,053,005,672

The annexed notes form an integral part of there financial statements

Kazi Mohammad Abdul Bashed Ariful Islam Wahida Begum

Head of Accounts Company Secretary Chief Executive Officer

Mohammad Jahangir Alam Md. Obayed Ullah Al Masud

Director Chairman

Signed in terms of our separate report of even date annexed

Dated, Dhaka Mahfel Huq & Co.

Wednesday, June 24, 2020 Chartered Accountants

370
 Rupali Bank Limited

RUPALI BANK SECURITIES LIMITED

STATEMENT OF CASH FLOWS
For the year ended 31 December 2019

Amount in Taka
Particulars Notes
31-Dec-19 31-Dec-18
Cash flows from operating activities
Received from customer 189,521,501 167,620,132
Customer Dividend Received 4,472,737 4,093,722
Paid to customer (108,443,724) (90,484,012)
Net Pay/Rec with DSE (125,118,218) (170,573,860)
Net Pay/Rec with Merchant Bank 96,456,490 19,892,654
Paid for Customer IPO (735,900) (685,400)
General & administrative expenses paid (18,248,859) (18,117,686)
Paid for Accounts, VAT & TDS Payable (1,622,771) (1,655,610)
Bank Interest Received 6,780,998 2,768,379
Advance Income Tax (2,744,158) (5,148,470)
Accounts Receivable & Suspense Account (50,000) -
Net cash used in operating activities (A) 40,268,094 (92,290,150)

Cash flows from investing activities

Purchase of assets (2,472,982) (5,775)
Advances (3,888,466) -
Sale of DSE Share - 37,879,317
Net Investment in FDR (20,000,000) (50,000,000)
Loan to Employee (13,300,000) -
Investment in Shares (108,164,039) (75,680,742)
Sale of investment in shares 99,128,763 101,407,833
Net Cash dividend Received 7,512,286 11,660,887
Net cash used in investing activities (B) (41,184,438) 25,261,520

Cash flows from financing activities

Received from Rupali Bank Ltd. (Share Capital) - -
Cash Dividend Paid - -
Net cash from financing activities (C) - -
Net increase in cash and cash equivalents (A+B+C) (916,344) (67,028,630)
Add: cash & cash equivalents at beginning of the year 74,244,376 141,273,006
Cash & cash equivalents at the end of the year 73,328,032 74,244,376

The annexed notes form an integral part of there financial statements

Kazi Mohammad Abdul Bashed Ariful Islam Wahida Begum

Head of Accounts Company Secretary Chief Executive Officer

Mohammad Jahangir Alam Md. Obayed Ullah Al Masud

Director Chairman

Signed in terms of our separate report of even date annexed

Dated, Dhaka Mahfel Huq & Co.

Wednesday, June 24, 2020 Chartered Accountants

Annual Report 2019 371

M
RUPALI BANK SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

1. Reporting Entity
Rupali Bank Securities Limited was incorporated on the 29th August 2013 vide RJSC Registration No.C-110969/13 under the
Companies Act, 1994 as a limited company. It is a subsidiary company of Rupali Bank Limited. Rupali Bank Limited holds all the
shares of the company except for seven shares being held by seven individuals. The Company has purchased a membership from
Dhaka Stock Exchange bearing DSE TREC No. 246.

Principal Activities

The main objective of the company is to act as, and carry on the business of a Stock Broker & Stock Dealer and to engage in all types
of Stock Broking business, that is to buy, sell, and deal in, shares, stocks, debentures, bonds, to open BO Account, to provide margin
loan, to pledge shares and to work as a panel broker to merchant banks and market makers with the permission of competent
authority; and to provide such other intermediary services as required in the capital and securities market.

2. Basis of Preparation

2.1 Basis of presentation of financial statements

(a) (a) The figures appearing in these Financial Statements have been rounded off to the nearest integer.

(b) The financial statements have been prepared on a going concern basis under historical cost convention in accordance
with International Financial Reporting Standards (IFRS), the Companies Act 1994, Securities and Exchange Rules
1987 and other applicable laws in Bangladesh. Wherever appropriate, such principles are explained in related notes.

2.2 Reporting period

The accounting period of the company is from 01 January 2019 to 31 December 2019.

3. Significant Accounting Policies

Accounting policies set out below have been applied consistently to all periods presented in these financial statements.

3.1 Property, Plant and Equipment

3.1.1 Recognition and Measurement

The cost of an item of property, plant and equipment (fixed assets) is recognized as an asset, if and only if it is probable that
future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably.
Property, plant and equipment have been accounted for at cost less accumulated depreciation, Cost includes expenditure
that is directly attributable to the acquisition of the items
Subsequent cost of enhancement of an existing assets is recognized as a separate asset, only when it is probable that future
economic benefits associated with the item can be measured reliably. All other repair and maintenance are charged to the
statement of comprehensive income during the accounting period in which they are incurred.

3.1.2 Depreciation
Depreciation is charged in the statement of comprehensive income on reducing balance method over the estimated useful
lives of each item of property, plant and equipment. In the case of acquisition of fixed assets, depreciation has been charged
from the month of acquisition, whereas no depreciation on assets to be disposed off has been charged from the month of
disposal.

Rates of depreciation on various items of property, plant and equipment considering the useful lives of assets are as follows:

Asset category Rate of depreciation (%)

Property, plant and equipment
Furniture and Fixtures 10
Office and Electrical Equipment 20
Office Rennovation 20
Computer and Peripherals 20
Other fixed Assets 10
Intangible Assets
Software 50

372
 Rupali Bank Limited

RUPALI BANK SECURITIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

3.2 Advance, Deposits and Prepayments

Advances are initially measured at cost. After initial recognition, advances are carried at cost less deductions, adjustments or charges
to other account heads such as property, plant and equipment etc
Prepayments are initially measured at cost. After initial recognition, prepayments are carried at cost less charges to Statement of
Comprehensive Income.

3.3 Cash and Cash Equivalents

Cash and cash equivalents comprise cash in hand and bank balances in short term deposit, which were held and available for use
of the company without any restriction.

3.4 Statement of Cash Flows

Statement of cash flows has been prepared in accordance with the International Accounting Standards-7 “Statement of Cash Flows”
under direct method.

3.5 Receivables

Receivables are recognized when there is a contractual right to receive cash or another financial asset from another entity.

3.6 Share Capital

Ordinary shares are classified as equity when there is no contractual obligation to transfer cash or other financial assets.

3.7 Provision for Current Taxation

Provision for current income tax has been made as per Income Tax Ordinance-1984.

3.8 Provision for Deferred Taxation

Deferred tax liabilities are amount of income taxes payable in future periods in respect of taxable temporary differences. Deferred
tax assets are the amount of income taxes recoverable in future periods in respect of deductible temporary differences. Deferred
tax assets and liabilities are recognized for the future tax consequences of timing differences arising between the carrying value of
assets, liabilities, income and expenditure and their respective tax bases. Deferred tax assets and liabilities are measured using tax
rates and tax laws that have been enacted or substantially enacted at the date of statement of financial position. The impact on the
account of changes in the deferred tax assets and liabilities has also been recognized in the statement of comprehensive income as
per IAS-12 “Income Taxes”.

3.9 Provision for Liabilities

A provision is recognized in the statement of financial position when the company has a legal or constructive obligation as a result of
a past event and it is probable that an outflow of economic benefit will be required to settle the obligations, in accordance with the
IAS-37 “Provisions, Contingent Liabilities and Contingent Assets”.

3.10 Employee Benefit Scheme

The company operate “Rupali Bank Securities Limited Employees General Provident Fund” as retirement benefit scheme for its
permanent employees where employees contributed 10% of basic salary. The employees enjoy 13% rate of interest on deposit of
GPF amount. The company make provision an amount for future pension payment.

3.11 Rearrangement and Restatement of Information

Comparative information has been rearranged wherever considered necessary to conform to the current year’s presentation.
Comparative information on EPS has been restated to correctly arrive at the figure.

3.12 Previous Accounts are Restated & Rearranged where necessary.

4. Revenue Recognition

4.1 Interest income

In terms of the provisions of IFRS-15 “Revenue from Contracts with Customers”, interest income is recognized on accrual
basis.

4.2 Realized gain on own Portfolio

Capital gain on own portfolio is recognised when it is realised.

Annual Report 2019 373

RUPALI BANK SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

4.3 Dividend Income

Dividend income on shares is recognised when dividend received.

4.4 Earnings per Share

Basic earnings per share
Basic earnings per share have been calculated in accordance with IAS-33 “Earnings per Share” which have been shown on
the face of statement of comprehensive income. This has been calculated by dividing the basic earnings by the number of
ordinary shares outstanding during the year.
4.5 Events after the reporting period
Where necessary, all the material events after the reporting period date have been considered and appropriate adjustment/
disclosures have been made in the financial statements.
4.6 Management’s responsibility on financial statements

The management of the company is responsible for the preparation and presentation of these financial statements.

4.7 Related Party Disclosures

During the year ended 31 December 2019, the company entered into a number of transactions with related parties in the
normal course of business. The names of the related parties, nature of these transactions and amounts thereof have been
set out in note # 37 in accordance with the provisions of IAS 24 Related Party Disclosures.
4.8 Compliance Report on International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS)
While preparing the financial statements, Rupali Bank Securities Limited applied most of IASs and IFRSs applicable for the
reporting period as adopted by Institute of Chartered Accountants of Bangladesh. Details are given below:

Name of IAS No. Status

Presentation of Financial Statements 1 Applied
Inventories 2 N/A
Statement of Cash Flows 7 Applied
Accounting Policies, Changes in Accounting Estimates and Errors 8 Applied
Events after the Reporting Period 10 Applied
Income Taxes 12 Applied
Property, Plant and Equipment 16 Applied
Employee Benefits 19 Applied
Accounting for Government Grants and Disclosure of Government Assistance 20 N/A
The Effects of Changes in Foreign Exchange Rates 21 N/A
Borrowing Costs 23 N/A
Related Party Disclosures 24 Applied
Accounting and Reporting by Retirement Benefit Plans 26 N/A
Financial Reporting in hyperinflationary Economics 29 N/A
Financial Instruments: Presentation 32 Applied
Earnings per Share 33 Applied
Interim Financial Reporting 34 Applied
Impairment of Assets 36 Applied
Provisions, Contingent Liabilities and Contingent Assets 37 Applied
Intangible Assets 38 Applied
Financial Instruments: Recognition and Measurement 39 Applied
Investment Property 40 N/A
Agriculture 41 N/A

374
 Rupali Bank Limited

RUPALI BANK SECURITIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Name of the IFRS No. Status

First time adoption 1 N/A
Share-based Payment 2 N/A
Business Combinations 3 N/A
Insurance Contracts 4 N/A
Non-current Assets Held for Sale and Discontinued Operations 5 N/A
Exploration for and Evaluation of Mineral Resources 6 N/A
Financial Instrument Disclosure 7 Applied
Operating Segments 8 N/A
Consolidated Financial Statements 10 N/A
Joint Arrangements 11 N/A
Disclosure of Interests in Other Entities 12 N/A
Fair Value Measurement 13 N/A
Revenue form contracts with customers 15 Applied
Leases 16 N/A
4.9 General

a) These financial statements are presented in Taka, which is the Company’s functional currency. Figures appearing in these
financial statements have been rounded off to the nearest Taka.
b) The expenses, irrespective of capital or revenue nature, accrued / due but not paid have been provided for in the books
of the Company.

c) Figures of previous year have been rearranged whenever necessary to conform to current years presentation.

Annual Report 2019 375

RUPALI BANK SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Tk.
31 Dec 2019 31 Dec 2018
5.00 Property, Plant & Equipment: 8,395,314 7,550,250
Opening balance 16,234,372 16,228,597
Add: Addition during the Period 2,472,982 5,775
Less: Disposal during the Period - -
Closing balance (A) 18,707,354 16,234,372
Accumulated Depreciation:
Opening balance 8,684,122 7,078,604
Add: Addition during the Period 1,627,918 1,605,518
Less: Disposal during the Period - -
Closing balance (B) 10,312,040 8,684,122
Written down value (A-B) 8,395,314 7,550,250

6.00 Intangible Assets: 15,625 31,250

Opening balance 500,000 500,000
Add: Addition during the Period - -
Less: Adjustment during the Period - -
Less: Disposal during the Period - -
Closing balance (A) 500,000 500,000
Accumulated Depreciation:
Opening balance 468,750 437,500
Add: Addition during the Period 15,625 31,250
Less: Adjustment during the Period - -
Less: Disposal during the Period - -
Closing balance (A) 484,375 468,750
Written down value (A-B) 15,625 31,250

7.00 Deferred Tax

Taxable Temporary Difference: (74,077) (73,184)
Carrying Value of Depreciable Fixed assets-Accounts Base 8,410,939 7,581,500
Carrying Value of Depreciable Fixed assets-Tax Base (8,668,955) (7,627,866)
Net Taxable Temporary Difference (258,016) (46,366)
Applicable Tax Rate 35% 35%
Deferred Tax Liability (90,306) (16,228)
Deferred Tax Expenses/(Income) is arrived as follows:
Closing Deferred Tax Liabilities (90,306) (16,228)
Opening Deferred Tax Liabilities (16,228) 56,956

8.00 Investment in DSE Shares* 282,320,683 282,320,683

* This represents the original investment cost of our DSE membership in exchange less received from DSE for sale proceed of 25%
DSE share to strategic investors of DSE (32,02,00,000-3,78,79,317=28,23,20,683). As per provision of the Exchange Demutualization
Act-2013 and in accordance with the Demutualization Scheme approved by the Bangladesh Securities and Exchange Commission
(BSEC), Dhaka Stock Exchange Ltd. (DSE) allotted total 72,15,106 ordinary Shares at face value of Tk.10.00 each against the
membership of DSE. Out of the above Shares DSE transfered 28,86,042 shares directly to the credit of the Beneficiary Owner's
account of the company and 43,29,064 shares credited to a blocked accountas. After sell of 25% (18,03,777 shares) DSE shares our
current DSE share position is total 54,11,329 ordinary Shares at face value of Tk.10.00, out of total shares 28,86,042 shares on the
Beneficiary Owner's account of the company and 25,25,287 (43,29,064-18,03,777) shares on blocked accounts . At October 30, 2018
DSE provide the Cq of Tk 3,78,79,317 to RBSL as net sale proceed amount of DSE share. As there is no active market for DSE shares,
we have shown the value at original cost of our investment.

376
 Rupali Bank Limited

RUPALI BANK SECURITIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Tk.
31 Dec 2019 31 Dec 2018
9.00 Cash and Bank Balances 73,328,032 74,244,376
Rupali Bank Ltd. (RSCB) General A/C # 95809-Closed - 993,409
Rupali Bank Ltd. (RSCB) General A/C # 0026024000176 4,842,767 -
Rupali Bank Ltd. (Local Office) A/C # 0018024000198 388,686 42,678,628
Rupali Bank Ltd. (FREXCBr) Con. Customer A/C # 35245-Closed - 24,357,361
Rupali Bank Ltd. (FREXCBr) Con. Customer A/C # 0067024000097 51,135,496 -
Rupali Bank Ltd. (FREXCBr) Dealer A/C # 35255-Closed - 6,137,147
Rupali Bank Ltd. (FREXCBr) Dealer A/C # 0067024000095 16,855,102 -
Rupali Bank Ltd. (FREXCBr) PIA A/C # 35265-Closed - 77,125
Rupali Bank Ltd. (FREXCBr) PIA A/C # 0067024000096 89,376 -
Petty Cash 16,605 706
*Full form of RSCB=Rupali Sadan Corporate Br, FREXCBr= Foreign Exchange Corporate Br.

10.00 Investment 566,882,857 532,031,355

Portfolio Investment at cost (Annexure-2) 496,882,857 480,868,128
Investment in FDR (Note # 10.01) 70,000,000 51,163,227
10.01 Investment in FDR 70,000,000 51,163,227
Rupali Bank Ltd. (Mugda Br) FDR Ac # 0612035004842 20,000,000 -
Rupali Bank Ltd. (Kaptan Bz. Br) FDR Ac # 4929035004818 20,000,000 -
Rupali Bank Ltd. (Sc. Lab Br) FDR Ac # 0372035030542 30,000,000 -
Rupali Bank Ltd. (Sc. Lab Br) FDR Ac # 0372035030512 - 51,163,227
11.00 Loans 265,244,885 258,444,715
Margin Loan to Clients 251,886,957 258,444,715
Staff Loan (Note # 11.01) 13,357,928 -

11.01 Staff Loan 13,357,928 -

Staff House Building Loan 11,153,764 -
Executive Car Loan 2,204,164 -
12.00 Advance, Deposits and Prepayments 39,851,956 31,483,160
Advance for Nikunjo Office 850,000 850,000
Advance for Office Space Rent 3,141,684 1,292,020
Security Deposit to CDBL 200,000 200,000
Advance Income Tax (Note # 12.01) 35,660,272 29,141,140
12.01 Advance Income Tax 35,660,272 29,141,140
Opening Balance 29,141,140 19,366,672
AIT on DSE (Broker) 1,503,537 1,507,693
AIT on DSE (Dealer) 149,401 103,360
AIT on Cash Dividend Income 1,848,599 2,882,920
AIT on Bank Interest Income 571,153 408,862
Advance Income Tax Paid 2,446,442 4,871,633
13.00 Accounts Receivables 2,908,346 8,205,159
Net Receivable from RIL (Panel Broking) 741,190 6,966,765
Receivables from DSE (Broker) 1,384,634 974,346
Interest Income Receivable 673,166 209,018
Suspense Account 50,000 -
Receivables from Cash Clients-Charges 59,356 55,031

14.00 Share Capital

14.01 Authorized Capital

500,000,000 Ordinary Shares of Tk. 10/- each. 5,000,000,000 5,000,000,000

Annual Report 2019 377

RUPALI BANK SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Tk.
31 Dec 2019 31 Dec 2018
14.02 Paid Up Capital 1,030,000,000 1,000,000,000
Opening Balance 1,000,000,000 1,000,000,000
Bonus Share Issue 30,000,000 -
15.00 Retained Earnings 33,097,730 53,005,672
Opening Balance 53,005,672 37,930,575
Adjustment - -
Bonus Share Issue (30,000,000) -
Restated Opening Balance 23,005,672 37,930,575
Current Year Income/(Loss) 10,092,058 15,075,097
Closing Balance 33,097,730 53,005,672
16.00 Deffered Tax Liabilities

17.00 Accounts payable 23,899,935 16,930,836

Payable to Customer 19,174,364 11,318,026
Customer's Dividend Payable 6 108,002
Payable to DSE (Broker) 250,798 3,185,169
Payable to DSE (Dealer) 1,257,812 -
Payable to CDBL 21,678 32,330
Office Rent & Utility bills payable 13,717 20,478
Accounts, VAT & TDS Payable 347,402 335,179
Interest Payable on PF 642,270 348,816
Payable for PF (Contribution by Employee) 2,191,888 1,582,835
18.00 Other Liabilities 106,988,828 92,216,706
Provision for diminution in value of investment # 18.01 88,880,093 77,680,093
Provision against margin loan/negative equity # 18.02 3,311,208 259,774
Other Provisions # 18.03 14,638,216 14,117,196
Auditors & Tax advisory Fee Payable 92,000 97,750
Welfare Fund 50,799 40,999
Transport Fund 7,100 5,300
Salaries payable 9,412 15,594
18.01 Provision for diminution in value of investment 88,880,093 77,680,093
Opening Provision 77,680,093 69,180,093
Add: provision during the period (Annexure-2) 11,200,000 8,500,000
18.02 Provision against margin loan/negative equity 3,311,208 259,774
Opening Provision 259,774 -
Add: provision during the period 3,051,434 259,774

18.03 Other Provisions 14,638,216 14,117,196

Employee's Pension Fund (Note # 18.03.1) 13,073,216 5,441,924
Retirement Benefit (Note # 18.03.2) - 5,500,000
Provision for Incentive/Performance bonus (Note # 18.03.3) 1,565,000 3,175,272

18.03.1 Provision for Employee's Pension Fund 13,073,216 5,441,924

Opening Balance 5,441,924 3,472,878
Add: Made during the period 2,131,292 1,969,046
Add: Provision Transfer from Retirement Benefit (Note # 18.03.2) 5,500,000 -
Less: Paid during the period - -
18.03.2 Provision for Retirement Benefit - 5,500,000
Opening Balance 5,500,000 5,500,000
Add: Made during the period - -
Less: Transferred to Provision for Employee's Pension Fund (Note # 18.03.1) 5,500,000 -
Less: Paid during the period - -

378
 Rupali Bank Limited

RUPALI BANK SECURITIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Tk.
31 Dec 2019 31 Dec 2018
18.03.3 Provision for Incentive/Performance bonus 1,565,000 3,175,272
Opening Balance 3,175,272 3,000,000
Less: Paid during the period 1,465,002 1,466,010
Less: Transferred to Provision for Tax (Note # 19) 1,710,270 -
Add: Made during the period 1,565,000 1,641,282

19.00 Provision for Tax 45,051,510 32,173,961

Opening balance 32,173,961 24,944,684
Add: Provision made during the period (Note # 34) 11,167,280 7,229,277
Add: Provision transfer from Incentive Bonus (Note # 18.03.3) 1,710,270
Less: Adjustment made during the period - -

20.00 Fees & Commission Income 9,540,036 10,076,013

Brokerage Commission Income 8,896,518 9,434,161
BO A/C Opening Fee Income 63,000 93,000
BO A/C Renewal Fee Income 540,450 480,150
Others Fee Income 4,783 5,217
IPO Service Income 35,285 63,485

21.00 Interest & Financial income 38,273,122 26,349,387

Margin Loan Interest Income 31,694,582 22,045,548
Bank Interest Income 3,181,829 2,768,379
Interest Income on FDR 3,234,527 1,529,270
Interest Income on SHBL 153,764 -
Others Financial Income 8,420 6,190

22.00 Cash Dividend Income 9,360,648 14,543,674

23.00 Capital Gain On Own Portfolio (Annexure-1) 5,945,980 9,038,821

24.00 Salary and allowances 15,501,861 15,744,726

Salary and allowances-Permanent Employee. # 24.01 14,868,741 13,629,797
Salary and allowances-Deputation # 24.02 633,120 2,114,929

24.01 Salary and allowances-Permanent Employee 14,868,741 13,629,797

Basic salary 6,090,433 5,627,493
House rent allowance 3,224,286 2,980,852
Medical allowance 288,000 288,000
Conveyance allowance 10,800 10,800
Washing Allowances 3,600 3,600
Children Edu. Allowances 48,000 48,000
Salary & Allowances-Arrear 22,161 3,778
Contribution to Employee's Pension Fund 2,131,292 1,969,046
Liveries and Uniform 28,497 16,212
Overtime 179,060 175,040
Executive Car Maintanance Allowance 160,000 -
Festival Bonus 1,018,054 949,078
Incentive/Performance Bonus 1,565,000 1,465,002
Bangla Noboborsho Vata 99,558 92,896

Annual Report 2019 379

RUPALI BANK SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Tk.
31 Dec 2019 31 Dec 2018
24.02 Salary and allowances-Deputation 633,120 2,114,929
Basic salary 294,880 -
House rent allowance 147,440 -
Medical allowance 6,000 -
Children Edu. Allowances 4,000 -
Qualification Allowances 800 -
Gross Salary-Deputation - 1,068,780
PF Contribution Exp-Deputation - 243,359
Executive Car Maintanance Allowance 180,000 500,000
Festival Bonus - 115,260
Incentive/Performance Bonus - 176,280
Bangla Noboborsho Vata - 11,250
25.00 Printing, Stationery & Advertisement 93,972 133,557
Printing & Stationery 93,972 133,557
Advertisement - -

26.00 Directors Fees and Expenses 487,200 478,400

27.00 Depreciation, repair and maintanance of assets (A+B) 2,006,243 1,715,891

Depreciation and amortization (A) 1,643,543 1,636,768
Depreciation (Annexure-3) 1,627,918 1,605,518
Amortization (Annexure-3) 15,625 31,250
Repair and Maintanance (B) 362,700 79,123
Motor Vehicle 103,217 37,993
Furniture & Fixture 16,030 4,600
Office Equipment 42,766 18,530
Computer & Peripheral 37,965 8,500
Electrical Equipment & Generator 157,922 9,500
Others 4,800 -
28.00 DSE and CDBL Expenses (A+B) 1,706,322 1,645,149
DSE Expenses (A) 915,395 877,863
DSE Transection Fee 824,084 791,990
DSE Authorized Representative Fee 57,900 35,500
DSE Others Charges 33,411 50,373
CDBL Expenses (B) 790,927 767,286
CDBL CDS Connectivity Charges 6,000 6,000
CDBL BO A/C Opening Charges 43,750 65,100
CDBL BO A/C Renewal Charges 420,350 373,800
CDBL Settlement Transfer Charges 316,544 318,727
CDBL Other Charges 4,283 3,659
29.00 Rent, Taxes, Insurance, Electricity etc 4,067,002 6,091,673
Office Space Rent 3,710,682 5,589,000
Parking Rent expenses 30,180 40,500
Electricity Expenses 274,930 428,582
Water & Sewerage Expenses 34,267 33,591
Insurance Expenses 16,943
30.00 Postage, telecommunication, network etc. 662,640 570,514
Postage, Telephone, Mobile, Fax & Telex 338,031 224,510
Network Conectivity expenses 324,609 346,004

31.00 Audit Fees 57,500 80,500

Audit fee-Current year 57,500 57,500
Audit fee- previous year quarterly audit - 23,000

380
 Rupali Bank Limited

RUPALI BANK SECURITIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS
as at and for the year ended 31 December 2019

Amount in Tk.
31 Dec 2019 31 Dec 2018
32.00 Legal, advisory and professional expenses 36,664 36,525
Tax & Legal Advisory Fee 17,250 17,250
Advisory/Consultancy Fee 13,769 18,400
Stamps, Notary & Legal Expenses 5,645 875

33.00 Other Expenses 3,063,688 2,519,997

Welfare and recreation 1,011,534 991,710
Conveyance Expenses & Allowance 49,905 20,600
Travelling Expenses & Allowances 143,900 36,300
P. O. L. & Gas Expenses-Vehicle 62,269 62,968
Entertainment 358,255 254,965
Web, Online & Others Maintenance Expenses 29,737 57,903
Meeting expenses 106,091 139,160
News paper and periodicals 62,160 20,330
Office Cleaning Expenses 106,865 99,789
Fees & Renewals 195,100 233,460
Miscellaneous expenses 178,427 59,798
Interest paid on GPF 293,454 191,888
RJSC Expenses 1,230 -
Training Expenses 2,400 -
AGM Expenses 264,270 240,825
Bad Debts Expenses 19,921 -
Bank Charges 178,170 110,301

34.00 Current tax expenses

Heads of Income Amount Rate Tax Liability Tax Liability
Business income 22,573,006 35% 7,900,552 3,416,660
Cash Dividend 9,360,648 20% 1,872,130 2,908,735
Capital gain 5,945,980 10% 594,598 903,882
Extra Provision for Tax 800,000 -
Total tax expenses 11,167,280 7,229,277

35.00 Earnings per share (EPS)

Total comprehensive income (A) 10,092,058 15,075,097
Number of Shares outstanding during the year (B) 103,000,000 103,000,000
EPS (A/B) 0.10 0.15

36.00 Related party transaction

36.01 Accounts balances with related parties:

Nature of Amount in Taka
Name of related party Nature
Transactions 31 Dec 2019 31 Dec 2018
Local Office, Rupali Bank Limited Group Entity Banker 388,686 42,678,628
Rupali Sadan Corporate Branch, Rupali Bank Limited Group Entity Banker 4,842,767 993,409
Rupali Foreign Ex. Corporate Branch, Rupali Bank Limited Group Entity Banker 51,135,496 24,357,361
Rupali Foreign Ex. Corporate Branch, Rupali Bank Limited Group Entity Banker 16,855,102 6,137,147
Rupali Foreign Ex. Corporate Branch, Rupali Bank Limited Group Entity Banker 89,376 77,125
Rupali Investment Limited Group Entity Panel Broking 741,190 6,966,765

Annual Report 2019 381

RUPALI BANK SECURITIES LIMITED
STATEMENT OF CAPITAL GAIN/(LOSS)
For the period 1 January 2019 to 31 December 2019 Annexure-1

Sl.
Company Name No. of Shares Rate Sale Amount Pur. Rate Pur. Amount Cap. Gain/(Loss)
No.
1 ACFL 3,138 40.26 126,323 40.00 125,520 803
2 AL-HAJTEX 9,950 104.07 1,035,470 90.91 904,517 130,953
3 BANKASIA 200,924 17.35 3,486,167 16.85 3,385,422 100,745
4 BBSCABLES 40,000 101.07 4,042,849 91.09 3,643,599 399,250
5 BEACHHATCH 100,000 21.96 2,196,165 19.72 1,971,641 224,524
6 BGIC 29,088 21.74 632,301 20.86 606,754 25,547
7 BPML 10,807 84.55 913,729 80.00 864,560 49,169
8 BSC 306,677 51.22 15,709,263 48.91 14,999,982 709,281
9 BSCCL 208,000 144.81 30,120,046 130.28 27,097,710 3,022,336
10 CITYBANK 142,460 33.11 4,716,657 32.46 4,624,315 92,341
11 CITYGENINS 184,159 18.17 3,346,119 16.40 3,020,937 325,182
12 CONFIDCEM 5,000 140.00 700,000 137.90 689,500 10,500
13 COPPERTECH 4,741 40.26 190,868 10.00 47,410 143,458
14 DOREENPWR 11,000 94.57 1,040,312 93.40 1,027,407 12,905
15 DUTCHBANGL 10,000 69.81 698,083 67.00 670,000 28,083
16 EHL 32,966 53.26 1,755,833 50.99 1,680,772 75,061
17 ESQUIRENIT 20,890 47.00 981,830 45.00 940,050 41,780
18 ETL 454,000 11.22 5,092,980 18.67 8,474,983 (3,382,003)
19 FORTUNE 76,814 41.58 3,193,918 41.05 3,152,905 41,013
20 GENEXIL 10,467 46.33 484,936 10.00 104,670 380,266
21 IBP 294 34.00 9,996 9.09 2,673 7,323
22 INTRACO 266 29.80 7,927 9.53 2,534 5,393
23 JAMUNABANK 732,000 20.29 14,849,896 19.19 14,047,980 801,916
24 KTL 11,070 21.66 239,815 9.09 100,640 139,175
25 LANKABAFIN 100,000 26.55 2,655,000 22.33 2,232,562 422,438
26 MERCINS 6,500 36.20 235,300 34.68 225,450 9,850
27 MHSML 115,375 11.20 1,292,383 25.99 2,999,092 (1,706,708)
28 MLDYEING 4,228 33.27 140,672 8.33 35,233 105,438
29 NEWLINE 11,268 17.84 201,066 9.78 110,227 90,839
30 ORIONINFU 269,638 62.65 16,893,291 58.82 15,859,595 1,033,696
31 PADMAOIL 5,000 254.40 1,272,000 250.70 1,253,477 18,523
32 PROVATIINS 50,000 20.70 1,035,000 20.04 1,001,840 33,160
33 PUBALIBANK 131,867 28.25 3,724,713 25.99 3,427,496 297,217
34 RUNNERAUTO 7,205 97.36 701,496 75.00 540,375 161,121
35 SEAPEARL 3,729 28.81 107,419 10.00 37,290 70,129
36 SILCOPHL 10,939 26.95 294,822 9.70 106,077 188,745
37 SILVAPHL 9,194 29.25 268,918 10.00 91,940 176,978
38 SKTRIMS 5,545 44.20 245,089 9.09 50,410 194,679
39 SSSTEEL 13,492 39.61 534,448 10.00 134,920 399,528
40 SUMITPOWER 10,000 41.50 415,000 38.90 389,000 26,000
41 UCB 83,274 20.30 1,690,462 18.87 1,571,379 119,084
42 UNITEDFIN 701,000 24.37 17,084,451 23.34 16,362,538 721,913
43 VFSTDL 4,222 56.02 236,500 9.09 38,386 198,114
Total 5,945,743
Sell of Fraction Bonus 237.43
Total Capital Gain 5,945,980.18

382
 Rupali Bank Limited

RUPALI BANK SECURITIES LIMITED

PORTFOLIO STATEMENT
As at December 31, 2019 Annexure-2

Sl. Unrealized Gain/

Company Name Quantity Avg. Cost Total Cost Market Rate Market Value
No. (Loss)
1 AAMRATECH 105,000 37.10 3,896,019 23.20 2,436,000 (1,460,019)
2 ABB1STMF 812,459 6.61 5,372,800 4.10 3,331,082 (2,041,718)
3 ABBANK 550,000 23.40 12,870,274 7.90 4,345,000 (8,525,274)
4 ACMELAB 80,000 117.63 9,410,188 60.90 4,872,000 (4,538,188)
5 ADNTEL 18,968 30.00 569,040 27.00 512,136 (56,904)
6 AFCAGRO 342,918 35.53 12,183,485 20.00 6,858,360 (5,325,125)
7 AFTABAUTO 165,000 48.37 7,981,324 24.40 4,026,000 (3,955,324)
8 APOLOISPAT 906,400 19.50 17,678,859 3.90 3,534,960 (14,143,899)
9 BARKAPOWER 253,000 34.85 8,818,000 22.70 5,743,100 (3,074,900)
10 BATBC 4,000 1,122.33 4,489,312 969.90 3,879,600 (609,712)
11 BAYLEASING 106,033 25.53 2,707,117 13.80 1,463,255 (1,243,861)
12 BBSCABLES 24,750 81.60 2,019,660 58.80 1,455,300 (564,360)
13 BEXIMCO 600,000 31.42 18,851,133 13.80 8,280,000 (10,571,133)
14 BSC 5,000 43.00 215,000 42.30 211,500 (3,500)
15 BSCCL 27,000 93.70 2,529,800 93.80 2,532,600 2,800
16 BSRMSTEEL 128,810 86.38 11,126,176 39.20 5,049,352 (6,076,824)
17 CENTRALPHL 131,288 26.74 3,510,063 9.00 1,181,592 (2,328,471)
18 CITYBANK 150,000 26.82 4,023,417 21.10 3,165,000 (858,417)
19 CNATEX 400,000 11.38 4,550,000 1.80 720,000 (3,830,000)
20 COPPERTECH 4,979 9.52 47,420 23.50 117,007 69,587
21 DELTALIFE 70,500 148.47 10,466,878 78.50 5,534,250 (4,932,628)
22 DELTASPINN 110,000 11.18 1,230,000 4.00 440,000 (790,000)
23 DHAKABANK 840,000 20.33 17,080,463 12.00 10,080,000 (7,000,463)
24 DUTCHBANGL 1,500 68.60 102,900 71.30 106,950 4,050
25 EBL 58,980 32.91 1,941,067 33.20 1,958,136 17,069
26 EHL 42,501 46.29 1,967,390 41.30 1,755,291 (212,099)
27 ENVOYTEX 51,260 38.38 1,967,526 24.90 1,276,374 (691,152)
28 ESQUIRENIT 20,890 45.00 940,050 28.30 591,187 (348,863)
29 ETL 30,000 18.67 560,021 9.60 288,000 (272,021)
30 FAMILYTEX 1,102,500 10.06 11,087,248 2.00 2,205,000 (8,882,248)
31 FARCHEM 133,100 18.86 2,509,678 8.20 1,091,420 (1,418,258)
32 FIRSTSBANK 235,956 12.25 2,890,505 9.70 2,288,773 (601,732)
33 FORTUNE 345,000 32.66 11,269,145 23.00 7,935,000 (3,334,145)
34 FUWANGCER 300,000 14.18 4,255,000 7.30 2,190,000 (2,065,000)
35 GENNEXT 231,000 9.02 2,082,500 2.70 623,700 (1,458,800)
36 GP 35,000 319.68 11,188,696 285.80 10,003,000 (1,185,696)
37 GPHISPAT 356,606 37.69 13,440,597 25.90 9,236,095 (4,204,502)
38 GQBALLPEN 60,000 95.92 5,755,134 71.70 4,302,000 (1,453,134)
39 ICB 49,500 139.68 6,913,917 76.80 3,801,600 (3,112,317)
40 ICBAMCL2ND 250,000 10.39 2,598,161 7.70 1,925,000 (673,161)
41 ICBEPMF1S1 48,360 8.50 411,060 4.40 212,784 (198,276)
42 IDLC 60,000 80.50 4,829,900 45.40 2,724,000 (2,105,900)
43 IFIC 550,000 15.43 8,487,267 9.90 5,445,000 (3,042,267)
44 ISLAMIBANK 230,000 36.88 8,483,515 19.10 4,393,000 (4,090,515)

Annual Report 2019 383

RUPALI BANK SECURITIES LIMITED
PORTFOLIO STATEMENT
As at December 31, 2019
Annexure-2

Sl. Unrealized Gain/

Company Name Quantity Avg. Cost Total Cost Market Rate Market Value
No. (Loss)
45 JAMUNAOIL 11,000 206.33 2,269,649 141.90 1,560,900 (708,749)
46 KDSALTD 65,000 46.48 3,020,991 39.10 2,541,500 (479,491)
47 LANKABAFIN 125,000 22.98 2,872,133 18.00 2,250,000 (622,133)
48 LHBL 50,000 65.25 3,262,309 33.60 1,680,000 (1,582,309)
49 LINDEBD 5,000 1,351.49 6,757,429 1,299.00 6,495,000 (262,429)
50 MHSML 53,307 25.99 1,385,677 9.40 501,086 (884,591)
51 MITHUNKNIT 50,000 56.20 2,810,000 8.60 430,000 (2,380,000)
52 MJLBD 100,000 113.10 11,309,952 63.30 6,330,000 (4,979,952)
53 MTB 10,000 26.25 262,500 26.50 265,000 2,500
54 NAHEEACP 111,237 59.23 6,588,883 36.60 4,071,274 (2,517,609)
55 NAVANACNG 125,000 62.82 7,852,635 34.40 4,300,000 (3,552,635)
56 NBL 739,200 11.42 8,440,000 8.10 5,987,520 (2,452,480)
57 NCCBANK 472,918 16.25 7,686,025 12.00 5,675,016 (2,011,009)
58 NEWLINE 4,282 9.35 40,023 14.80 63,374 23,350
59 NTLTUBES 19,108 119.90 2,291,112 120.40 2,300,603 9,492
60 OAL 55,000 17.88 983,500 6.30 346,500 (637,000)
61 ONEBANKLTD 660,000 18.42 12,159,000 10.30 6,798,000 (5,361,000)
62 ORIONINFU 39,391 55.56 2,188,624 53.80 2,119,236 (69,388)
63 ORIONPHARM 30,000 53.17 1,595,000 26.90 807,000 (788,000)
64 POPULAR1MF 227,394 6.27 1,425,227 4.10 932,315 (492,912)
65 PRIMEBANK 1,000,000 19.20 19,202,264 18.20 18,200,000 (1,002,264)
66 QUASEMIND 315,650 57.78 18,237,311 36.60 11,552,790 (6,684,521)
67 RAKCERAMIC 181,500 54.58 9,907,129 28.70 5,209,050 (4,698,079)
68 RNSPIN 396,000 18.31 7,249,966 3.90 1,544,400 (5,705,566)
69 RUNNERAUTO 7,566 71.43 540,450 59.50 450,177 (90,273)
70 SAIFPOWER 73,267 33.30 2,440,000 13.40 981,778 (1,458,222)
71 SALVOCHEM 75,000 20.44 1,532,877 10.30 772,500 (760,377)
72 SAPORTL 481,676 33.36 16,067,455 16.70 8,043,989 (8,023,465)
73 SEAPEARL 3,916 9.53 37,300 41.30 161,731 124,431
74 SILCOPHL 4,377 9.09 39,793 30.30 132,623 92,830
75 SINGERBD 7,000 186.04 1,302,292 180.40 1,262,800 (39,492)
76 SOUTHEASTB 220,000 16.89 3,715,000 13.40 2,948,000 (767,000)
77 SPCL 179,652 125.61 22,565,916 70.00 12,575,640 (9,990,276)
78 SQURPHARMA 6,000 217.54 1,305,233 190.00 1,140,000 (165,233)
79 TALLUSPIN 221,029 15.93 3,521,018 2.90 640,984 (2,880,034)
80 TITASGAS 345,000 66.05 22,788,167 30.90 10,660,500 (12,127,667)
81 TOSRIFA 90,000 24.08 2,167,296 13.60 1,224,000 (943,296)
82 UNIONCAP 105,000 19.37 2,034,341 6.30 661,500 (1,372,841)
83 UNITEDFIN 75,000 16.99 1,274,250 17.30 1,297,500 23,250
84 UTTARABANK 226,324 36.46 8,250,748 27.20 6,156,013 (2,094,735)
85 WATACHEM 5,493 399.75 2,195,815 365.80 2,009,339 (186,476)
Total 496,882,857 - 287,199,911 (209,682,946)

Total Unrealized Loss (209,682,946)

Opening Provision 77,680,093
add: Provision for the period 11,200,000
Total Provision as at 31 December 2019 88,880,093
(Total Provision is 42% on Total Unrealized Loss)

384
 RUPALI BANK SECURITIES LIMITED
SCHEDULE OF FIXED ASSET’S
As at December 31, 2019 Annexure-3

Cost Depreciation
Written down
Adjustment/ value as on
Particulars Addition Adjustment/ Charges
Balance as on Balance as on Balance as on Disposal Balance as on 31.12.2019
during the Disposal during Rate % during the
01.01.2019 31.12.2019 01.01.2019 during the 31.12.2019 (5-10)
period the period period
period
1 2 3 4 5=(2+3-4) 6 7 8 9 10= (7+8-9) 11
Furniture and Fixture 3,075,184 49,500 - 3,124,684 10% 1,051,398 204,441 - 1,255,839 1,868,845
Office Equipment 1,519,653 - - 1,519,653 20% 773,871 149,156 - 923,027 596,626
Office Renovation 4,214,623 2,129,345 - 6,343,968 20% 2,488,313 629,322 - 3,117,636 3,226,332
Computer & Peripheral 7,424,912 294,137 - 7,719,049 20% 4,370,540 644,998 - 5,015,538 2,703,511
Total (A) 16,234,372 2,472,982 - 18,707,354 8,684,122 1,627,918 - 10,312,040 8,395,314

Schedule of Amortization
As at 31 December 2019

Software 500,000 - - 500,000 50% 468,750 15,625 - 484,375 15,625

Total (B) 500,000 - - 500,000 468,750 15,625 - 484,375 15,625

Total (A+B) 16,734,372 2,472,982 - 19,207,354 9,152,872 1,643,543 - 10,796,415 8,410,939

Annual Report 2019

Rupali Bank Limited

385
MEDIA HIGHLIGHTS

386
Rupali Bank Limited

Annual Report 2019 387

HIGHLIGHTS OF AGM 2019

388
 Rupali Bank Limited

CELEBRATIONS AND TRIBUTES

Annual Report 2019 389

SPORTS AND CULTURAL ACTIVITIES

390
 Rupali Bank Limited

TRAINING

Annual Report 2019 391

 REMEMBRANCE

A. T.M. Salauddin Khan Md. Shah Alam Miah Md. Solaiman

Assistant General Manager Principal Officer Principal Officer
Reg.-8487 Reg.- 8346 Reg.- 9343

Abdus Sabur Khan Noor Ahammed Mohammad Badruzzaman

Senior Officer Officer Officer
Reg.- 11649 Reg.- 7132 Reg.- 11352

Manik Lal Shil Md. Riaz Md. Delwar Hossain

Office Assistant Office Assistant Office Assistant
Reg.- 11045 Reg.- 4580 Reg.- 7353

392
 Rupali Bank Limited

Nur Hossain Md. Ali Azgor Md. Abul Hossain

Office Assistant Office Assistant Office Assistant
Reg.- 5695 Reg.- 9768 Reg.- 7317

WE REMEMBER AND
DEEPLY MOURN FOR OUR
BEST COLLEGUES WHOM
WE LOST IN 2019

Md. Nijam Uddin

Office Assistant
Reg.- 8825

Nur Mohammad
Office Assistant
Reg.- 13560

Annual Report 2019 393

BANGLADESH MAP:
REPRESENTING GEOGRAPHICAL
LOCATION OF BRANCHES OF RBL

45 North

West East

Rangpur
South

74 48 51

Rajshahi Mymensingh Sylhet

70

Dhaka North

48 71
Dhaka
59 South
Cumilla
Khulna 49 57

Barishal
Chattogram

394
 Rupali Bank Limited

BRANCH NETWORK
1 Local Office, Dhaka 38 Bangla Bazar Branch, Narayangonj
DIVISIONAL OFFICE, DHAKA NORTH 39 Barpa Branch, Narayangonj

2 Mirpur Corporate Branch, Dhaka. 40 Benodpur Branch, Munshigonj

3 Purana Paltan Corporate Branch, Dhaka 41 Fatulla Branch, Narayangonj

4 Gulshan Corporate Branch, Dhaka 42 Kanai Nagar Branch, Narayangonj

5 S.K.Road Corporate Branch, Narayangonj 43 Louhajong Branch

29
44 Mirkadim Branch, Munshigonj
Dhaka North Zone
45 Munshigonj Corporate Branch, Munshigonj
6 Adabar Branch, Dhaka
46 Narsingdi Corporate Branch, Narsingdi
7 Baira Bazar Branch, Manikgonj
47 Netai Ganj Branch, Narayangonj
8 Bashair Bazar Branch, Gazipur
48 Nowpara Branch, Munshigonj
9 Daulatpur Bazar Branch, Manikgonj
49 Palash Branch, Narsingdi
10 Dhaka Cant. Corporate Branch, Dhaka
50 Tanbazar Corporate Branch, Narayangonj
11 Dhankura Branch, Manikgonj
12 Gabtoli Hat Branch, Dhaka Faridpur Zone 21
13 Ghior Bazar Branch, Manikgonj 51 Alfadanga Branch, Faridpur

14 Green Road Branch, Dhaka 52 Badarpur Branch, Faridpur

15 Indira Road Branch, Dhaka 53 Banibaha Bazar Branch, Rajbari
16 Jhitka Bazar Branch, Manikgonj 54 BMM Branch, Faridpur
17 Joydebpur Corporate Branch, Gazipur 55 Boalmari Bazar Branch, Faridpur
18 Kushura Branch, Dhaka 56 Char Hajigonj Bazar Branch, Faridpur
19 Manikgonj Corporate Branch, Manikgonj 57 Faridpur Corporate Branch, Faridpur
20 Mohakhali Branch, Dhaka 58 Ghagor Bazar Branch, Gopalgonj
21 Mohammadpur Branch, Dhaka 59 Goalanda More Branch, Rajbari
22 Mohammadpur Ladies Branch, Dhaka 60 Gopalgonj Corporate Branch, Gopalgonj
23 Nikunja Branch, Dhaka 61 Goshairhat Branch, Shariatpur
24 Pallabi Branch, Dhaka 62 Joynagar Branch, Gopalgonj
25 Rokeya Sarani Branch, Dhaka 63 Madaripur Corporate Branch, Madaripur
26 Saturia Branch, Manikgonj 64 Pangsha Branch, Rajbari
27 Savar Bus Stand Branch, Dhaka 65 Pourasava Market Branch, Rajbari
28 Savar Cant. Branch, Dhaka 66 Rahuthor Bazar Branch, Gopalgonj
29 Shahrail Bazar Branch, Manikgonj 67 Rajbari Corporate Branch, Rajbari
30 Shyamoli Branch, Dhaka 68 Ramdia College Branch, Gopalgonj
31 TCB Bhaban Corporate Branch, Dhaka 69 Shariatpur Corporate Branch, Shariatpur
32 Tongi Branch, Gazipur 70 Shibchar Branch, Madaripur
33 Uttar Khan Branch, Dhaka 71 Tungipara Branch, Gopalgonj
34 Uttara Model Town Corporate Branch, Dhaka DIVISIONAL OFFICE, DHAKA SOUTH
Narayangonj 16 72
73
Foreign Excahnge Corporate Branch, Dhaka
Rupali Sadan Corporate Branch, Dhaka
35 Araihazar Branch, Narayangonj
74 Motijheel Corporate Branch, Dhaka
36 B. B. Road Branch, Narayangonj
37 Baburhat Branch, Narsingdi 75 Ramna Corporate Branch, Dhaka
76 Mitford Road Corporate Branch, Dhaka

Annual Report 2019 395

Dhaka Central Zone 22 DIVISIONAL OFFICE, MYMENSINGH
77 B. B. Avenue Branch, Dhaka Mymensingh Zone 26
78 Bangshal Road Branch, Dhaka 119 Bajitpur Branch, Kishoregonj
79 Dhaka Ladies Branch, Dhaka 120 Balipara Branch, Mymensingh
80 Dhanmondi Corporate Branch, Dhaka 121 Bhairab Bazar Branch, Kishoregonj
81 Elephant Road Branch, Dhaka 122 C.K.Ghosh Road Branch, Mymensingh
82 Fakirapool Bazar Branch, Dhaka 123 Chotto Bazar Corporate Branch, Mymensingh
83 Hatirpool Branch, Dhaka 124 Dapunia Bazar Branch, Mymensingh
84 Hatkhola Branch, Dhaka 125 Dhara Bazar Branch, Mymensingh
85 Kaptan Bazar Branch, Dhaka 126 Fatemanagar Branch, Mymensingh
86 Khilgaon Branch, Dhaka 127 Fulbaria Branch, Mymensingh
87 Malibagh Branch, Dhaka 128 Gafargaon Branch, Mymensingh

88 Mogh Bazar Branch, Dhaka 129 Ishwarganj Branch, Mymensingh

89 Mugda Branch, Dhaka 130 Kachijhuli Branch, Mymensingh

131 Kendua Branch, Netrokona
90 Nawabpur Road Branch, Dhaka
132 Khagdahar Bazar Branch, Mymensingh
91 Nayapaltan Corporate Branch, Dhaka
133 Kishoregonj Corporate Branch, Kishoregonj
92 Nayatola Branch, Dhaka
134 Mollikbari Branch, Mymensingh
93 New Market Branch, Dhaka
135 Muktagacha Branch, Mymensingh
94 North South Road Branch, Dhaka
136 Nandail Branch, Mymensingh
95 Postagola Branch, Dhaka
137 Netrokona Corporate Branch, Netrokona
96 Rajarbagh Branch, Dhaka
138 Nilgonj Branch, Kishoregonj
97 Rampura Branch, Dhaka
139 Patua Bhanga Dorga Bazar Branch, Kishoregonj
98 Science Laboratory Branch, Dhaka 140 Purabari Branch, Mymensingh
Dhaka South Zone 20 141 Rayer Bazar Branch, Mymensingh
142 Shyamgonj Branch, Mymensingh
99 Badamtali Branch, Dhaka
143 Thanaghat Branch, Mymensingh
100 Bandura Branch, Dhaka
144 Trishal Branch, Mymensingh
101 Chawkbazar Branch, Dhaka
102 Gandaria Branch, Dhaka Jamalpur Zone 10
103 Hazaribagh Branch, Dhaka 145 Aramnagar Branch, Jamalpur

104 Imamgonj Branch, Dhaka 146 Boira Bazar Branch, Jamalpur

105 Islampur Road Branch, Dhaka 147 Dharmakura Bazar Branch, Jamalpur

106 Johnson Road Corporate Branch, Dhaka 148 Durmut Bazar Branch, Jamalpur
149 Jamalpur Corporate Branch, Jamalpur
107 Moulvibazar Branch, Dhaka
150 Jamuna Sarkarkhana Complex Branch, Jamalpur
108 Muksudpur Branch, Dhaka
151 Koyra Bazar Branch, Jamalpur
109 Nawabgonj Branch, Dhaka
152 Melandah Branch, Jamalpur
110 Patuatuly Branch, Dhaka
153 Sarishabari Branch, Jamalpur
111 Rathkhola Branch, Dhaka
154 Sherpur Town Corporate Branch, Sherpur
112 Sadarghat Branch, Dhaka
113 Shikaripara Branch, Dhaka
Tangail Zone 12
114 Shyambazar Branch, Dhaka 155 Balla Bazar Branch, Tangail

115 Tutail Branch, Dhaka 156 Basail Branch, Tangail

157 Elasin Branch, Tangail
116 Urdu Road Branch, Dhaka
158 Elenga Bus Stand Branch, Tangail
117 Yousuf Market Branch, Dhaka
159 Ghatail Branch, Tangail
118 Zinzira Branch, Dhaka

396

160 Kalihati Branch, Tangail
161 Natiapara Branch, Tangail
162 Pakulla Branch, Tangail
163 Pathrail Bazar Branch, Tangail
164 Ratangonj Bazar Branch, Tangail
165 Sakhipur Branch, Tangail
166 Tangail Corporate Branch, Tangail
DIVISIONAL OFFICE, CHATTOGRAM
167 O.R. Nizam Road Corporate Branch, Chattogram
168 Agrabad Corporate Branch, Chattogram
Chattogram West Zone 27
169 Abutorab Bazar Branch, Chattogram
170 Anowara Branch, Chattogram
171 Banarupa Branch, Rangamati
172 Bibirhat Corporate Branch, Chattogram
173 Biddyut Bhaban Branch, Chattogram
174 Chaitanyagali Branch, Chattogram
175 Chawkbazar Branch, Chattogram
176 Commercial Area Branch, Chattogram
177 Dhanialapara Branch, Chattogram
178 Enayetpur Branch, Chattogram
179 Jubilee Road Branch, Chattogram
180 Ladies Branch, Chattogram
181 Nazir Hat Branch, Chattogram
182 New Market Corporate Branch, Chattogram
183 Omar Ali Market Branch, Chattogram
184 Pahartali Branch, Chattogram
185 Panchlaish Branch, Chattogram
186 Ramgarh Branch, Khagrachari
187 Rangamati Corporate Branch, Rangamati
188 Raujan Branch, Chattogram
189 Sadarghat Branch, Chattogram
190 Sagarika Road Branch, Chattogram
191 Saltgola Corporate Branch, Chattogram
192 Shantirhat Branch, Chattogram
193 Station Road Corporate Branch, Chattogram
194 Strand Road Branch, Chattogram
195 Tabalchari Branch, Rangamat
Chattogram East Zone 28
196 Amir Market Corporate Branch, Chattogram
197 Bandarban Corporate Branch, Bandarban
198 Bazarghata Branch, Cox's Bazar
199 Boxirhat Branch, Chattogram
200 Chaktai Branch, Chattogram
201 Chandgaon Corporate Branch, Chattogram
202 Chiringa Branch, Cox's Bazar
203 Court Bazar Branch, Cox's Bazar
Rupali Bank Limited
204 CUET Branch, Chattogram
205 Dewan Bazar Branch, Chattogram
206 Eidgaon Branch, Cox's Bazar
207 Gomdandi Branch, Chattogram
208 Iqbal Road Branch, Chattogram
209 Kalurghat Branch, Chattogram
210 Keranihat Branch, Chattogram
211 Khan's Hat Branch, Chattogram
212 Khatungonj Branch, Chattogram
213 Korbanigonj Branch, Chattogram
214 Lichu Bagan Branch, Chattogram
215 Nur Ali Bari Branch, Chattogram
216 Patherhat Branch, Chattogram
217 Patiya Branch, Chattogram
218 Ramu Branch, Cox's Bazar
219 Rupali Sadan Corporate Branch, Chattogram
220 Rupali Sadan Corporate Branch, Cox's Bazar
221 Shakpura Chowmuhoni Branch, Chattogram
222 Terribazar Corporate Branch, Chattogram
223 Urkirchar Branch, Chattogram
DIVISIONAL OFFICE, CUMILLA
Noakhali Zone 24
224 Amishapara Branch, Noakhali
225 Balua Chowmohoni Branch, Lakhsmipur
226 Bangla Bazar (Begumgonj) Branch, Noakhali
227 Bibirhat Branch, Lakhsmipur
228 Chatkhil Branch, Noakhali
229 Chowmohoni Branch, Noakhali
230 Dalta Bazar Branch, Lakhsmipur
231 Dattapara Branch, Lakhsmipur
232 Deliai Bazar Branch, Noakhali
233 Eklashpur Bazar Branch, Noakhali
234 Golabaria Branch, Noakhali
235 Kabirhat Branch, Noakhali
236 Karambox Bazar Branch, Noakhali
237 Karihati Bazar Branch, Noakhali
238 Lakhsmipur Corporate Branch, Lakhsmipur
239 Maijdee Court Corporate Branch, Noakhali
240 Mandari Bazar Branch, Lakhsmipur
241 Miar Hat Branch, Noakhali
242 Palla Bazar Branch, Noakhali
243 Poddar Bazar Branch, Lakhsmipur
244 Pourasava Market Branch, Noakhali
245 Rajgonj Bazar Branch, Noakhali
246 Ramgoti Bazar Branch, Lakhsmipur
247 Sonapur Branch, Lakhsmipur
Annual Report 2019 397
Cumilla Zone 20
248 Ashugonj Branch, Brahmanbaria
249 Bagmara Bazar Branch, Cumilla
250 Barera Bazar Branch, Cumilla
251 Barrister Jakir Ahmed College Branch, Brahmanbaria
252 Bhuschi Bazar Branch, Cumilla
253 Bipulashar Branch, Cumilla
254 Brahmanbaria Corporate Branch, Brahmanbaria
255 Chowara Bazar Branch, Cumilla
256 Companygonj Branch, Cumilla
257 Cumilla Cantonment Corporate Branch, Cumilla
258 Daulatgonj Bazar Branch, Cumilla
259 Gangchar Timber Market Branch, Cumilla
260 Gazirhat Branch, Cumilla
261 Madhaiya Bazar Branch, Cumilla
262 Mainamati Bazar Branch, Cumilla
263 Monohargonj Branch, Cumilla
264 Monoharpur Corporate Branch, Cumilla
265 Mudaffargonj Branch, Cumilla
266 Nabinagar Branch, Brahmanbaria
267 Rajgonj Corporate Branch, Cumilla
290 Kuthir Hat Branch, Feni
291 Motigonj Branch, Feni
292 New Ranir Hat Branch, Feni
293 Sharsadi Bazar Branch, Feni
294 Tal Mohammad (T. M.) Hat Branch, Noakhali
DIVISIONAL OFFICE, RAJSHAHI
295 Rajshahi Corporate Branch, Rajshahi
Rajshahi Zone 23
296 Abdulpur Branch, Natore
297 Badalgachi Branch, Naogaon
298 Baliadanga Branch, Chapainawabgonj
299 Bausa Bazar Branch, Rajshahi
300 Bholahat Branch, Chapainawabgonj
Chapainawabgonj Corporate Branch,
301
Chapainawabgonj
302 Hospital Road Branch, Naogaon
303 K.N.I Road Branch, Rajshahi
304 Kakonhat Branch, Rajshahi
305 Laxmipur Branch, Rajshahi
306 Naldangarhat Branch, Natore
307 Namosankerbati Branch, Chapainawabgonj

12
308 Natore Corporate Branch, Natore
Chandpur Zone
309 Niamatpur Branch, Naogaon
268 Baburhat Branch, Chandpur
310 Nichabazar Branch, Natore
269 Birampur Bazar Branch, Chandpur
311 Quadirabad Cant. Branch, Natore
270 Chitoshi Bazar Branch, Chandpur
312 Rajshahi Cantonment Branch, Rajshahi
271 Hajigonj Branch, Chandpur
313 Rohanpur Branch, Chapainawabgonj
272 Kachua Branch, Chandpur
314 RUET Branch, Rahshahi
273 Mohamaya Bazar Branch, Chandpur
315 Sadar Road Corporate Branch, Naogaon
274 Natun Bazar Corporate Branch, Chandpur
316 Singra Branch, Natore
275 Nayarhat Branch, Chandpur
317 Tanore Branch, Rajshahi
276 Nazirpara Branch, Chandpur
318 Tomaltola Bazar Branch, Natore
277 Rampur Bazar Branch,Chandpur
278 Shahatali Bazar Branch, Chandpur
Pabna Zone 22
279 Shoshair Char Branch, Chandpur 319 Ataikula Bazar Branch, Pabna

15
320 Autapara Branch, Pabna
Feni Zone
321 Bagbatihat Branch, Sirajgonj
280 Amir Uddin Munsir Hat Branch, Feni
322 Bonwari Nagar Branch, Pabna
281 Bangla Bazar (Companygonj) Branch, Noakhali
323 Belkuchi Branch, Sirajgonj
282 Bashur Hat Branch, Feni
324 Bera Branch, Pabna
283 Darbesher Hat Branch, Feni
325 Betil Branch, Sirajgonj
284 Dhalia Bazar Branch, Feni
326 Boalia Branch, Sirajgonj
285 Fazilpur Branch, Feni
327 Bonogram Branch, Pabna
286 Feni Corporate Branch, Feni
328 Dariapur Bazar Branch, Sirajgonj
287 Islampur Road Branch, Feni
329 Debottar Branch, Pabna
288 Karaiya Bazar Branch, Feni
330 Dogachhi Branch, Pabna
289 Krishna Majumder Hat Branch, Feni

398

331 EPZ Branch, Pabna
332 Gopalpur Branch, Pabna
333 Ishwardi Branch, Pabna
334 Nagarbari Branch, Pabna
335 Nakalia Branch, Pabna
336 Pabna Cadet College Branch, Pabna
337 Pabna Corporate Branch, Pabna
338 Santhia Branch, Pabna
339 Shiyalkole Branch, Sirjgonj
340 Sirajganj Corporate Branch, Sirajgonj
Bogura Zone 28
341 Akkelpur Branch, Joypurhat
342 Altafnagar Branch, Bogura
343 Bhaierpukur Branch, Bogura
344 Bogura Cant. Branch, Bogura
345 Bus Stand (Sherpur) Branch, Bogura
346 Colony Bazar Branch, Bogura
347 Dhunat Branch, Bogura
348 Dupchanchia Branch, Bogura
349 Gabtali Branch, Bogura
350 Golabari Branch, Bogura
351 Gopinathpur Branch, Joypurhat
352 Goshaibari Branch, Bogura
353 Hatfulbari Branch, Bogura
354 Jahangirabad Cant. Branch, Bogura
355 Joypurhat Corporate Branch, Joypurhat
356 Kahaloo Branch, Bogura
357 Khetlal Branch, Joypurhat
358 Kichok Branch, Bogura
359 Ladies Branch, Bogura
360 Mohastan Branch, Bogura
361 Mokamtola Branch, Bogura
362 Molamgarihat Branch, Joypurhat
363 Namajgarh Branch, Bogura
364 Shabekpara Branch, Bogura
365 Shibgonj Branch, Bogura
366 Sukhanpukur Branch, Bogura
367 Thana Road Corporate Branch, Bogura
368 TMSS Branch, Bogura
DIVISIONAL OFFICE, RANGPUR
Rangpur Zone 19
369 Annadanagar Branch, Rangpur
370 Badiakhali Branch, Gaibandha
371 Baraibari Branch, Rangpur
Rupali Bank Limited
372 Bhendabari Branch, Rangpur
373 Central Road Branch, Rangpur
374 Dhaperhat Branch, Gaibandha
375 Dimla Branch, Nilphamari
376 G L Roy Road Corporate Branch, Rangpur
377 Gaibandha Corporate Branch, Gaibandha
378 Haragach Branch, Rangpur
379 Kishorigonj Branch, Nilphamari
380 Ladies Branch, Rangpur
381 Mahigonj Branch, Rangpur
382 Nilphamari Corporate Branch, Nilphamari
383 R.K Road Branch, Rangpur
384 Railwaya Crossing Branch, Rangpur
385 Syedpur Branch, Nilphamari
386 Taragonj Branch, Rangpur
387 Tetultala Branch, Rangpur
Lalmonirhat Zone 09
388 Aditmari Branch, Lalmonirhat
389 Barakhata Branch, Lalmonirhat
390 Bhurungamari Branch, Kurigram
391 Burimari Branch, Lalmonirhat
392 Chamtahat Branch, Lalmonirhat
393 Dalia (T. B) Branch, Nilphamari
394 Kurigram Corporate Branch, Kurigram
395 Lalmonirhat Corporate Branch, Lalmonirhat
396 Patgram Branch, Lalmonirhat
Dinajpur Zone 17
397 Baliadangi Branch, Thakurgaon
398 Bhully Branch, Thakurgaon
399 Birampur Branch, Dinajpur
400 Birganj Branch, Dinajpur
401 Birol Branch, Dinajpur
402 Chehelgazi Branch, Dinajpur
403 Dawoodpur Branch, Dinajpur
404 HSTU Corporate Branch, Dinajpur
405 Kabiraj Hat Branch, Dinajpur
406 Ladies Branch, Dinajpur
407 Maidandighi Branch, Panchagarh
408 Maldahpatty Branch, Dinajpur
409 Nimtala Corporate Branch, Dinajpur
410 Pancha Garh Corporate Branch, Panchagarh
411 Ranirbandor Branch, Dinajpur
412 Shikderhat Branch, Dinajpur
413 Thakurgaon Corporate Branch, Thakurgaon
Annual Report 2019 399
 DIVISIONAL OFFICE, KHULNA
414 Daulatpur Corporate Branch, Khulna
415 Shams Building Corporate Branch, Khulna
27
Khulna Zone
416 Bagerhat Corporate Branch, Bagerhat
417 Baruikhali Branch, Bagerhat
418 Batiaghata Branch, Khulna
419 Betaga Bazar Branch, Bagerhat
420 Boro Bazar Branch, Khulna
421 Budhata Branch, Satkhira
422 Chalna Bazar Branch, Khulna
423 Fakirhat Branch, Bagerhat
424 Fultola Branch, Khulna
425 Garaikhali Hat Branch, Khulna
426 IWTA (Terminal) Branch, Khulna
427 Jhaudanga Branch, Sathkhira
428 K D A New Market Branch, Khulna
429 Kachaua Bazar Branch, Bagerhat
430 Khalishpur Branch, Khulna
431 Kolaroa Branch, Khulna
432 Mansha Bazar Branch, Bagerhat
433 Mollahat Branch, Bagerhat
434 Monglaport Branch, Bagerhat
435 Nager Bazar Branch, Bagerhat
436 Nalta Mubarak Nagar Branch, Khulna
437 Natun Bazar Branch, Khulna
438 Nawabenki Branch, Satkhira
439 Paikgacha Branch, Khulna
440 Rajapur Branch, Khulna
441 Rupali Sadan Branch, Khulna
442 Satkhira Corporate Branch, Satkhira
Jashore Zone 18
443 Bag Anchra Branch, Jashore
444 Chaulia Bus Stand Branch, Magura
445 Hatkhalishpur Branch, Jhenaidah
446 Jhenaidah Corporate Branch, Jhenaidah
447 Kaligonj Branch, Jhenaidah
448 Khajura Branch, Jashore
449 Kotchandpur Branch, Jashore
450 Lohagara Bazar Branch, Narail
451 M.K. Road Corporate Branch, Jashore
452 Magura Corporate Branch, Magura
453 Monirampur Branch, Jashore
454 Narail Corporate Branch, Narail
455 Navaron Branch, Jashore
400
456 Panjia Bazar Branch, Jashore
457 Raipur Bazar Branch, Jashore
458 S M R Road Branch, Jashore
459 Safderpur Branch, Jhenaidah
460 Shoilokupa Branch, Jhenaidah
Kushtia Zone 12
461 Alomdanga Branch, Chuadanga
462 Bheramara Branch, Kushtia
463 Chuadanga Corporate Branch, Chuadanga
464 Damurhuda Branch, Chuadanga
465 Hossainabad Branch, Kustia
466 Kumarkhali Branch, Kushtia
467 Kushtia Corporate Branch, Kushtia
468 Meherpur Corporate Branch, Meherpur
469 Mominpur Branch, Chuadanga
470 Moshan Branch, Kushtia
471 Mujibnagar Branch, Meherpur
472 Swastipur Branch, Kushtia
DIVISIONAL OFFICE, BARISHAL
Barishal Zone 36
473 Agarpur Branch, Barishal
474 Bakergonj Branch, Barishal
475 Banaripara Branch, Barishal
476 Bangla Bazar Branch, Bhola
477 Bazar Road Branch, Barishal
478 Bhabanipur Branch, Barishal
479 Bhandaria Branch, Pirojpur
480 Bhola Corporate Branch, Bhola
481 Central Bus Terminal Branch, Barishal
482 Daulatkhan Branch, Bhola
483 Hemayet Uddin Road Branch, Barishal
484 Hular Hat Branch, Pirojpur
485 Ilisha Jongson Bazar Branch, Bhola
486 Inderhat Branch, Pirojpur
487 Indurkani Branch, Pirojpur
488 Jhalakhati Corporate Branch, Jhalakathi
489 Jinnahgarh Branch, Bhola
490 Kathalia Branch, Jhalakathi
491 Kawkhali Branch, Pirojpur
492 Kawria Bazar Branch, Barishal
493 Kowrikhara Branch, Pirojpur
494 Kunjerhat Branch, Bhola
495 Kutba Branch, Bhola
496 Lalmohan Branch, Bhola
497 Mohajonpatty Branch, Bhola

498 Mathbaria Branch, Pirojpur
499 Mehendigonj Branch, Barishal
500 Muladi Bandor Branch, Barishal
501 Pirojpur Corporate Branch, Pirojpur
502 Putiakhali Branch, Bandar Br.
503 Rahmatpur Branch, Barishal
504 Sadar Road Corporate Branch, Barishal
505 Sagardi Bazar Branch, Barishal
506 Shikarpur Branch, Barishal
507 Swarupkathi Branch, Pirojpur
508 Tajumuddin Branch, Bhola
Patuakhali Zone 13
509 Alipur Branch, Patuakhali
510 Amtali Branch, Barguna
511 Baherchar Branch, Patuakhali
512 Barguna Corporate Branch, Barguna
513 Betagi Branch, Barguna
514 Dibuapur Branch, Patuakhali
515 Galachipa Branch, Patuakhali
516 Kalisuri Bandar Branch, Patuakhali
517 Khepupara Branch, Patuakhali
518 New Town Branch, Patuakhali
519 Patharghata Branch, Patuakhali
520 Patuakhali Corporate Branch, Patuakhali
521 Patuakhali Sci. & Tech. Branch, Patuakhali
DIVISIONAL OFFICE, SYLHET
34
Sylhet Zone
522 Babur Bazar Branch, Sylhet
523 Bandar Bazar Branch, Sylhet
524 Bhober Bazar Branch, Sunamgonj
525 Charkhai Bazar Branch, Sylhet
526 Chhatak Branch, Sunamgonj
527 Dattarail Branch, Sylhet
528 Dayamir Branch, Sylhet
529 Dolar Bazar Branch, Sunamgonj
530 Habra Bazar Branch, Sylhet
531 Islampur Corporate Branch, Sylhet
532 Jagannathpur Branch, Sunamgonj
533 Kalarai Bazar Branch, Sylhet
Rupali Bank Limited
534 Kaligonj Branch, Sylhet
535 Kanai Ghat Branch, Sylhet
536 Kazir Bazar Branch, Sylhet
537 Kenbari Bazar Branch, Sunamgonj
538 Khadimpur Branch, Sylhet
539 Khalomukh Branch, Sylhet
540 Kurar Bazar Branch, Sylhet
541 Kurua Branch, Sylhet
542 Ladies Branch, Sylhet
543 Laldigirpar Corporate Branch, Sylhet
544 Madar Bazar Branch, Sylhet
545 Madina Market Branch, Sylhet
546 Mirabazar Corporate Branch, Sylhet
547 Rajagonj Branch, Sylhet
548 Rakhalgonj Branch, Sylhet
549 Rekabi Bazar Branch, Sylhet
550 Station Road Branch, Sylhet
551 Sultanpur Branch, Sylhet
552 Sunamgonj Corporate Branch, Sunamgonj
553 Syedpur Branch, Sunamgonj
554 Sylhet Agri. University Branch, Sylhet
555 Taltola Branch, Sylhet
Moulvibazar Zone 17
556 Aushkandi Branch, Habigonj
557 Azimgonj Branch, Moulvibazar
558 Chandnighat Branch, Moulvibazar
559 Chowmuhana Corporate Branch, Moulvibazar
560 Enayetganj Branch, Hobigonj
561 Gobindapur Bazar Branch, Moulvibazar
562 Habiganj Corporate Branch, Hobigonj
563 Keramat Nagar Branch,, Moulvibazar
564 Kulaura Branch, Moulvibazar
565 Madhabpur Branch, Hobigonj
566 Market Corporate Branch, Moulvibazar
567 Naluarmukh (Kalar ) Bazar Branch, Moulvibazar
568 Natunbazar Branch, Moulvibazar
569 Sherpur Bazar Branch, Moulvibazar
570 Sreemangal Branch, Moulvibazar
571 Shyamrarbazar Branch, Moulvibazar
572 Tengrabazar Branch, Moulvibazar
Annual Report 2019 401
LIST OF AUTHORIZED DEALER BRANCHES
Name & Address of Branches Cable Address Name & Address of Branches Cable Address
Dhaka Agrabad Corporate Branch Sewan 031 723959
16.
Local Office 9558610 House, 9 Agrabad C/A Chattogram 724571
1. 34, Dilkusha C/A Fax-88 2 Amir Market Corporate Branch
17. 031 611240
P.O. Box No. 719 DHAKA-1000 9554225 Khatungonj, Chattogram-4000
Foreign Exchange Corporate Branch Station Road Corporate Branch
031 613886
2. 9-G, Motijheel C/A 9567034 18. 113, Station Road (1ST floor)
619259
DHAKA-1000 Chattogram-4000
Motijheel Corporate Branch 59, Terri Bazar Corporate Branch 386,
9566073
3. Motijheel C/A 19. Terri Bazar, 031 611106
9566071-2
DHAKA-1000 Chattogram-4000
Purana Paltan Corporate Branch 21/2, Cumilla
4. Purana Paltan, (1ST Floor) Monishing 9512532 Monoharpur Corporate Branch
Fahrad Smirity Bhaban, DHAKA-1000 20. A.K. Fazlul Hoque Road Rajgonj, 081 76021
Ramna Corporate Branch 13, Cumilla
9551069
5. Bangabandhu Avenue Ramna, G.P.O. Mymensingh
9563093
Box No. 95 DHAKA-1000
Choto Bazar Corporate Branch Choto
Rupali Sadan Corporate Branch 156- 091-66838
21. Bazar
6. 157, Motijheel C/A 9563092 67264
Mymensingh
DHAKA-1000
Jashore
8120409
T.C.B Bhaban Corporate Branch 1-2, Mistrikhana Road Corporate Branch
7. 9141422 22. 0421-68583
Karwan Bazar, Tejgaon, DHAKA-1215 P.O. Mistrikhana Road Jashore
Mitford Road Corporate Branch 94, Sylhet
7317644
8. Mughaltuli, DHAKA-1213 23. Mira Bazar Corporate Branch Sylhet 0821-716119
7317645
P.O. Box No. 1061
Khulna
Johnson Road Corporate Branch 51,
9. North Brook Hall Road 9533140 041-722064
Shams Building Corporate Branch
(1ST Floor) DHAKA-1100 24. FAX 880-41-
14, Sir Iqbal Road, Khulna
721590
Gulshan Corporate Branch Landmark
10. 12-14 9880106 Daulatpur Corporate Branch Jessore 041-760973
Gulshan North Circle, Dhaka 25. Road FAX 880-41-
P.O. Daulatpur, Khulna 762451
Nikunja Branch
11. PLOT-1 & 3 (2ND Floor, Road 21/C, 8900267 Barishal
WARD-17, Khilkhet, DHAKA-1229 Sadar Road Corporate Branch
043-163839
Narayan Gonj 26. R.C. Das Gupta Building Sadar Road,
61429
Barishal
S.K. Road Corporate Branch
7633692 Bogura
12. 32, Shaesta Khan Road
7632580
NARAYANGONJ-1400 Thana Road Corporate Branch 051-66543
27.
Chattogram Satmatha, Bogura 63592

O. R. Nizam Road Corporate Branch Rangpur

O. R. Nizam Road, PO-Chattogram 031-630960 G.L. Roy Road Corporate Branch
13. 28. 0521-62328
Medical College, PS- Panchalish Dist.- 634953 Rangpur-5400
Chattogram Rajshahi
Rupali Sadan Corporate Brnach 320, 031 619426 Shaheb Bazar Corporate Branch
14. Laldighi East 630397 0721-772730
29. Fahmida Bhaban
Chattogram 611130 774150
P.O. Ghoramara, Rajshahi
New Market Corporate Branch 24-D.M
Market 031 616276
15.
Hossain Shahid Shohrawardy Road 613065
P.O. Box No. 144, Chattogram

402
 Rupali Bank Limited

ANNUAL REPORT REVIEW CHECKLIST

Particulars Page Number

Corporate Objectives, Values & Structure

Clarity and presentation: 9
Vision and Mission 9, 10
Overall strategic objectives 11
Core values and code of conduct/ethical principles 10, 13
Profile of the Company 18-20
Director’s profiles and their representation on Board of other companies & Organisation Chart 30-33

Management Report and analysis including Director’s Report / Chairman’s Review/CEO’s Review etc.
A general review of the performance of the company 212
Description of the performance of the various activities / products / segments of the company and its group
companies during the period under review. (Weightage to be given for pictorial / graphical / tabular presentations 212-217
used for this purpose)
A brief summary of the Business and other Risks facing the organisation and steps taken to effectively manage
145, 150-158
such risks
A general review of the future prospects/outlook. 113
Information on how the company contributed to its responsibilities towards the staff (including health & safety) 127
Information on company's contribution to the national exchequer & to the economy 176-178
Social Responsibility Initiatives ( CSR) 77, 119, 182-183
Environment related Initiatives 179-181
Environmental & Social Obligation 184-185, 87
Integrated Reporting 2, 234-346

Appropriateness of Disclosure of Accounting policies and General Disclosure

Disclosure of adequate and properly worded accounting policies relevant to Assets, liabilities, Income and
234-235, 240-241
expenditure in line with best reporting standards.
Any Specific accounting policies 247-270
Impairment of Assets 252
Changes in accounting policies/Changes in accounting estimates 247-270
Accounting policy on subsidiaries (if there is no any subsidiary, full marks should be granted) No Change

Segment Information
Comprehensive segment related information bifurcating Segment revenue, segment results and segment
120
capital employed
Availability of information regarding different segments and units of the entity as well as non-segmental entities/units 120-123
Segment analysis of 120
Segment Revenue 120, 218
Segment Results
218
Turnover
120, 236, 242, 210,
Operating profit
212, 213, 215, 318
Carrying amount of Net Segment assets 213-214, 218

Annual Report 2019 403

Particulars Page Number

Financial Statements (Including Formats)

Disclosures of all contingencies and commitments 235, 241
Comprehensive related party disclosures 262
Disclosures of Remuneration & Facilities provided to Directors & CEO 310
Statement of Financial Position / Balance Sheet and relevant schedules 234-235, 240-241
Income Statement / Profit and Loss Account and relevant schedules 236, 242
Statement of Changes in Equity / Reserves & Surplus Schedule 239, 245
Disclosure of Types of Share Capital 234, 240
Statement of Cash Flow 237-238, 243-244
Consolidated Financial Statement (CFS) 234-235
Extent of compliance with the core IAS/IFRS or equivalent National Standards 264
Disclosures / Contents of Notes to Accounts 247-317

Information about Corporate Governance

Board of Directors, Chairman and CEO 28-33, 82
Audit Committee (Composition, role, meetings, attendance, etc.) Internal Control & Risk Management 37, 102-105
Ethics and Compliance 86
Remuneration and other Committees of Board 83,85,86-87
Human Capital 126-131, 197
Communication to Shareholders & Stakeholders 87, 225
- Information available on website 3, 225
- Other information 18-20, 209, 225
Management Review And Responsibility 116-119, 262
Disclosure by Board of Directors or audit Committee on evolution of Quarterly Reports 28-30, 37, 262-263
Any other investor friendly information 225

Risk Management & Control Environment

Description of the Risk Management Framework 85, 143, 146, 159
Risk Mitigation Methodology 144, 153
Disclosure of Risk Reporting 145-173

Stakeholders Information
Distribution of shareholding (Number of shares as well as category wise, e.g Promoter group, FII etc) 220-221
Shares held by Directors/Executives and relatives of Directors/Executives 220-221, 342
Redressal of investors' complaints 199,225

Graphical/ Pictorial Data:

219, 112, 118, 211,
Earnings per Share
216, 256, 269
Net Assets 216
Stock Performance 217
Shareholders’ Funds 215, 79
Return on Shareholders Fund 216

404
 Rupali Bank Limited

Particulars Page Number

Horizontal/Vertical Analysis including following.

Operating Performance (Income Statement) 211
Total Revenue 211, 213, 218
22, 25, 59, 242 211,
Operating profit
213, 215, 318
Profit Before Tax 22, 211, 242
Profit after Tax 211, 242, 318
EPS 22, 211, 242

Statement of Financial Position ( Balance Sheet)

Shareholders Fund 211
Property Plant & Equipment 211, 214, 240
Net Current Assets
211
Long Term Liabilities/Current Liabilities

Profitability/Dividends/ Performance and Liquidity Ratios

Net Interest Income Ratio 210, 217
22, 25, 59, 242 211,
Profit before provisions and Tax
213, 215, 318
Price earnings ratio 210
Capital to Risk Weighted Assets Ratio 76, 150, 303
Return on Capital Employed 210, 219
Debt Equity Ratio 210, 219

Statement of Value Added and Its Distribution

Government as Taxes 177, 198
Shareholders as dividend 60
Employees as bonus/remuneration 310
Retained by the Entity 240, 306
Market share information of the Company’s product/services 20
Economic Value Added 203

Presentation of Financial Statements

Quality of the Report/ Layout of Contents
Cover and printing including the theme on the cover page
Appropriateness and effectiveness of photographs and their relevance Qualitative
Effectiveness of Charts and Graphs
Clarity, simplicity and lucidity in presentation of Financial Statements

Timeliness in issuing Financial Statements and holding AGMs

3 months time to produce the Annual Report and hold AGM are considered reasonable for full marks Due to COVID-19
Delay after the initial period of 3 months -deduction of 2 marks is to be made for each month Due to COVID-19
If the period is over 6 months – no marks shall be awarded Due to COVID-19

Annual Report 2019 405

Particulars Page Number

Additional Disclosures
Separate report
Sustainability Development Reporting
published
Value Creation Process 197, 198
Business Model 197
Stakeholder and Materiality 198
Human Resource Accounting 80
Strategy and Resource Allocation 197-200
Custodial Service 134
Corporate Governance Certificate 88

Specific Areas for Banking Sector

Disclosure of Ratings given by various rating agencies for the Bank and for its Instruments issued by /of Bank. For
19, 256
eg. FD, CD, Tier I and Tier II Bonds
Details of Advances portfolio Classification wise as per the direction issued by the central bank of the respective 124-125, 286-287,
countries 338-339

Disclosure for Non Performing assets:

• Movements in NPA 124-125, 289
• Movement of Provisions made against NPA 287-288, 300
Maturity Pattern of Key Assets and Liabilities (ALM) 124, 246
Classification and valuation of investments as per regulatory guidelines/Accounting Standards 280

Business Ratio/Information:
• Statutory Liquidity Reserve (Ratio) 271-272
• Net interest income as a percentage of working funds / Operating cost - Efficiency ratio
• Return on Average Asset 118, 210, 211, 318
• Cost/ Income ratio 210
• Net Asset Value Per Share 22,234, 241, 269
• Profit per employee 129
150, 162, 201, 303,
• Capital to Risk Weighted Assets Ratio
304
• Cost of Funds 22, 211, 212, 318
• Cash Reserve Ratio / Liquid Asset ratio 211, 318
• Dividend Cover ratio 211
• Gross Non-Performing assets to gross advances / Non-Performing Loans (Assets) to Total Loans (Assets) 286, 318
Details of credit concentration / Sector vise exposures 125
The break-up of “Provisions and contingencies’ included in the Profit and Loss Account 236, 242
Disclosure under regulatory guidelines 234-318
Details of Non-Statutory investment portfolio 277, 330-337
Disclosure in respect of assets given on operating & finance lease N/A
Disclosures for derivative investments 275, 280
Bank's Network : List of Centers or Branches 394-402

406
 Rupali Bank Limited

CORPORATE GOVERNANCE
DISCLOSURE CHECKLIST
Sl. Particulars
1. BOARD OF DIRECTORS, CHAIRMAN AND CEO
1.1 Company's policy on appointment of directors disclosed.
Adequate representation of non executive directors i.e. one third of the board, subject to a minimum of
1.2
two
At least one independent director on the board and disclosure/affirmation of the board on such director's
1.3
independence.
82
1.4 Chairman to be independent of CEO
Responsibilities of the Chairman of the Board appropriately defined and disclosed. Disclosure of
1.5
independence of Non Executive Directors
1.6 Existence of a scheme for annual appraisal of the boards performance and disclosure of the same
1.7 Disclosure of policy on annual evaluation of the CEO by the Board.
Disclosure of policy on training (including details of the continuing training program) of directors and
type and nature of training courses organized for directors during the year Existence of a scheme for
1.8 annual appraisal of the boards performance
83
At least one director having thorough knowledge and expertise in finance and accounting to provide
guidance in the matters applicable to accounting and auditing standards to ensure reliable financial
1.9 reporting.
Disclosure of number of meetings of the board and participation of each director (at least 4 meetings are
1.10
required to be held) 263
Directors issue a report on compliance with best practices on Corporate Governance that is reviewed by
1.11 83
the external auditors
2. VISION / MISSION AND STRATEGY
2.1 Company's vision / mission statements are approved by the board and disclosed in the annual report.
83
2.2 Identification of business objectives and areas of business focus disclosed
2.3 General description of strategies to achieve the company's business objectives 11
3. AUDIT COMMITTEES
3.1 Appointment and Composition
Whether the Audit Committee Chairman is an independent Non - Executive Director and Professionally
3.1.1
Qualified
Whether it has specific terms of reference and whether it is empowered to investigate / question
3.1.2 83
employees and retain external counsel
3.1.3 More than two thirds of the members are to be Non Executive Directors
All members of the audit committee to be suitably qualified and at least one member to have expert
3.1.4
knowledge of finance and accounting.
3.1.5 Head of internal audit to have direct access to audit committee 84
The committee to meet at least four times a year and the number of meetings and attendance by 104
3.1.6
individual members disclosed in the annual report.
3.2 Objectives & Activities
Statement on Audit Committee's review to ensure that internal controls are well conceived properly
3.2.1
administered and satisfactorily monitored
84
Statement to indicate audit committees role in ensuring compliance with Laws, Regulations and timely
3.2.2
settlements of Statutory dues
3.2.3 Statement of Audit committee involvement in the review of the external audit function
Ensure effective coordination of external audit function
Ensure independence of external auditors 84
To review the external auditors findings in order to be satisfied that appropriate action is being taken

Annual Report 2019 407

Sl. Particulars
Nothing in this
regard was
Review and approve any non-audit work assigned to the external auditor
assigned to the
external auditors
Statement on Audit committee involvement in selection of appropriate accounting policies that are in
3.2.4
line will applicable accounting standards and annual review.
Statement of Audit Committee involvement in the review and recommend to the board of directors, 84
3.2.5
annual and interim financial releases
3.2.6 Reliability of the management information used for such computation
4. Internal Control & Risk Management
4.1 Statement of Director's responsibility to establish appropriate system of internal control 85
Narrative description of key features of the internal control system and the manner in which the system
4.2
is monitored by the Board, Audit Committee or Senior Management.
4.3 Statement that the Director's have reviewed the adequacy of the system of internal controls 86
4.4 Disclosure of the identification of risks the company is exposed to both internally & externally
4.5 Disclosure of the strategies adopted to manage and mitigate the risks
5. Ethics and Compliance
Disclosure of statement of ethics and values, covering basic principles such as integrity, conflict of
5.1
interest, compliance with laws and regulations etc.
Dissemination / communication of the statement of ethics & business practices to all directors and
5.2
employees and their acknowledgement of the same
86
Board's statement on its commitment to establishing high level of ethics and compliance within the
5.3
organisation
Establishing effective anti-fraud programs and controls, including effective protection of whistle blowers,
5.4
establishing a hot line reporting of irregularities etc.
6. Remuneration Committee
6.1 Disclosure of the charter (role and responsibilities) of the committee
Disclosure of the composition of the committee (majority of the committee should be non-executive
6.2 86
directors, but should also include some executive directors)
6.3 Disclosure of key policies with regard to remuneration of directors, senior management and employees
6.4 Disclosure of number of meetings and work performed 87
6.5 Disclosure of Remuneration of directors, chairman, chief executive and senior executives. 311
7. Human Capital
Disclosure of general description of the policies and practices codified and adopted by the company
with respect to Human Resource Development and Management, including succession planning, merit
7.1 126-131
based recruitment, performance appraisal system, promotion and reward and motivation, training and
development, grievance management and counselling.
7.2 Organisational Chart 44-45
8. Communication to Shareholders & Stakeholders
Disclosure of the Company's policy / strategy to facilitate effective communication with shareholders
8.1
and other stake holders
87
Disclosure of company's policy on ensuring participation of shareholders in the Annual General Meeting
8.2
and providing reasonable opportunity for the shareholder participation in the AGM.
9. Environmental and Social Obligations
Disclosure of general description of the company's policies and practices relating to social and
9.1 87
environmental responsibility of the entity
9.2 Disclosure of specific activities undertaken by the entity in pursuance of these policies and practices 87

408
 Rupali Bank Limited

NOTES:

Annual Report 2019 409

NOTES:

410
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