PUBALI BANK

RANADA PRASAD SHAHA UNIVERSITY

An Assignment
On
Special Assignment 1

Course Title: Financial Institutions and Markets

Course code: FIN 413

Submitted for
S.M. Akber
Lecturer
Department of Business Administration

Submitted By
Takibul Hasan

ID: 18100042
Department of Business Administration

Date of submission
May 05,2021
PUBALI BANK

Contents
Deposits.............................................................................................................3
Borrowing from other Banks and Financial Institutions..........................................3
Lending to other Banks and Financial Institutions..................................................3
Advances...........................................................................................................3
Investment.........................................................................................................3
Foreign Exchange Business.................................................................................3
Investments........................................................................................................4
Deposits.............................................................................................................5
Borrowings from other Bank, Financial Institutions...............................................5
PRODUCTS & SERVICES.................................................................................8
Consumer Loans.................................................................................................9
Special SME Loans..........................................................................................9
TRADE FINANCE.............................................................................................9
TREASURY OPERATION...............................................................................10
OFF-SHORE BANKING UNIT (OBU)..............................................................10
BROKERAGE SERVICE.................................................................................11
MARGIN LOAN..............................................................................................11
When I am chief financial officer of the bank the different strategies would I take to
raise and use of the funds...................................................................................11
PUBALI BANK

Select a bank doing business in Bangladesh and listed in Dhaka Stock Exchange (DSE). Collect
their annual report. Based on your knowledge studied in Financial Institutions and Markets
course identify different sources of funds of your selected bank. How the bank uses the funds? If
you are hired as a chief financial officer (CFO) of that bank what different strategies would you
take to raise and use of the funds?

Answer: I am selecting PUBALI BANK for doing this assignment.

Pubali Bank Limited started its operation in the Capital Market in the year 2006 under the
Securities Trading Division (STD). After that as per the directive from Bangladesh Bank and
Bangladesh Securities & Exchange Commission, Securities Trading Division (STD) of Pubali
Bank Limited converted into a separate subsidiary company in the name of Pubali Bank
Securities Limited (PBSL) which was incorporated as a Public Limited Company on the June 21,
2010 under the Companies Act 1994 and started its functioning from February 01, 2011 with an
Authorized Capital BDT 5,000 (Five thousand) million only and an initial Paid up Capital BDT
1,600 (One thousand six hundred) million only. Currently the company is running with a Paid-up
Capital of BDT 6,600 (Six thousand six hundred) million and Authorized Capital BDT 7,000.00
million only as on 31.12.2019.
The company is the TREC (Trading Right Entitlement Certificate) holder of both Dhaka Stock
Exchange Ltd. (DSE TREC# 214) and Chittagong Stock Exchange Ltd. (CSE TREC # 105) and
also acts as a full service Depository Participant of CDBL.

The company offers full-fledged high standard brokerage service for retail and institutional investors.
PBSL also operate its Stock Dealing operation for its own investment in Capital market. It has proven
reputation in serving customers by maintaining strong compliance practices and highest ethical standard.
Beside this, Pubali Bank Securities Ltd has been playing a vital role in capital market for stabilization &
sustainable development of the market since its inception.

Though, the Capital Market is facing a critical situation, PBSL has passed comparatively a good
time in the year 2019 in terms of performance, profitability and brokerage activities. Hopefully
PBSL will do better in 2020 and continue the progress in Future.

Deposits
The deposit growth trend was positive in 2019. At the end of 2018, Total deposit was BDT
308,899.77 million that came to BDT 359,418.89 million at the end of 2019 showing 16.35%
increase. Out of the total deposits, Time Deposits BDT 296,371.62 million and Demand Deposits
were BDT 63,047.27 million i.e. 82.46% and 17.54% respectively.
PUBALI BANK

Borrowing from other Banks and Financial Institutions

In 2019 the bank borrowed BDT 16,970.35 million for business purpose compared to BDT
17,152.36 million during the previous year.

Lending to other Banks and Financial Institutions

In 2019 the bank lent BDT 126.79 million for businesses purpose same as the previous year.

Advances
Total advances of the bank as on 31 December 2019 stood at BDT 287,034.67 million showing
an increase of BDT 16,125.16 million @ 5.95% growth.
In line with national economic development, the bank made advances mainly as Commercial
Loan, Import & Export business, Term loan to large and medium scale industries, House
Building loan, Working Capital loan, Consumer’s Credit and Syndication loans etc.

Investment
Total investment of the bank was BDT 100,603.86million in 2019 compared to BDT 57,660.24
million in 2018. The bank mainly invested in Government Bonds, Treasury Bills, Approved
Debentures of private institutions and Capital Market through own portfolio.

Foreign Exchange Business

a) Import Business
During the year the Bank handled import business worth BDT 1,56,980.33 million. During the
previous year the amount was BDT 1, 55,713.70 million. The amount of import business handled
by the bank increased by BDT 1,266.63 million during the year which was .81% higher than the
previous year.
b) Export Business
The bank handled export business worth BDT 100379.90 million during the year as against BDT
104,861.60 million in the previous year which was 4.27% decrease than the previous year.
PUBALI BANK

c) Inward Foreign Remittance

Nonresident Bangladeshis sent foreign exchange equivalent to BDT 52656.90 million in 2019
whereas the amount was BDT 40,564.51 million in 2018.
Total Operating Income
Due to the reasons explained above, total operating income of the bank increased by BDT 1150
million during the year and stood at BDT 18,409.88 million.
Total Operating Expense
Total operating expenses of PBL increased by 6.55% during the year mainly salaries and
allowances and due to rental expense for the banks hired premises.

Advances
Total advances of the Bank as on 31 December, 2019 increased by 5.95% to 287,034.67 million
from 270,909.51 million as on 31 December 2018, largely driven by growth in Retail and SME
Loans. Corporate advances comprised 59.58% of total loans and reduced by 1.58% to BDT
171,028.70 million, SME loan comprised 22.49% of total loans and increased by 11.05% to BDT
64,549.70 million, Agricultural loans grew by 2.49% to BDT 5,074.90 million and constituted
1.77% of total loans, Retail loans grew by 19.28% to BDT 32,042.50 million and constituted
11.16% of total loans and other loans grew by 99.05% to BDT 14,338.90 million and constituted
5% of total loans.

Investments
The investment portfolio of the Bank increased by 74.48% to 100,603.86 million, of which
investments in Government and approved securities, held mainly for SLR requirement, increased
by 110.46% to 79,473.54 million. Other investments, including corporate debt securities,
increased by 6.19% to 21,130.32 million
PUBALI BANK

Deposits
The total deposits of the Bank increased by 16.35% to 359,419 million against 308,900 million
last year. Savings Bank deposits reported a growth of 10.39% to 82,675 million, while Current
Account deposits reported an increase of 7.59% to 41,004 million and Bills Payable reported a
remarkable growth of 25.22% to 14,603 million.
The Bank continued to maintain its focus on low cost deposits. As on 31 December, 2019, Time
deposit Constituting 82.46% of total deposits and stood at 296,371 million and Demand deposit
constituting 17.54% of total deposits and stood at 63,047 million.

Borrowings from other Bank, Financial Institutions

The total borrowings from other Bank, Financial Institutions of the Bank decreased by 1.06%
from 17,152 million in 2018 to 16,970 million in 2019.
PUBALI BANK
PUBALI BANK

As per the regulatory requirement of Bangladesh Securities and Exchange Commission (BSEC),
Bank has prepared and presented Quarter Ended Financial Statements. These statements are
prepared in accordance with BAS (Bangladesh Accounting Standards). The statements are sent
to Audit committee for review. After review by the Audit Committee and approval by the Board ,
the statements are finally submitted to Bangladesh Securities and Exchange Commission
(BSEC).
PUBALI BANK

Afterwards, the Quarter Ended Financial Statements are published in several daily newspapers.
The statement is also published in the website of the bank.

PRODUCTS & SERVICES

DEPOSIT PRODUCTS
Savings Bank Account
Current Deposit Account
Special Notice Deposit
School Banking Savings Account
Pubali Pension Scheme (PPS)
Pubali Sanchay Prokolpo (PSP)
Shikkha Sanchay Prokalpa (SSP)
Fixed Deposit Receipt (FDR)
Digun Sanchay Prokalpa (DSP)
Monthly Profit based Fixed Deposit
Monthly Profit based Small Deposit (Sadhin Sanchay)
Target Based Small Deposit (Swapno Puron)
Patho Shishu Account

LOAN PRODUCTS
Continuous Loans
 Cash Credit
 Secured Over Draft (SOD)
 Pubali Prochesta (Continuous SME)
 Pubali Protiva (Common)
Short Term Finance
 Loan against Term Deposits
 PBL Uttshob (Seasonal Business)
 Agri Credits
 Probash Bondhu (For Foreign Remitter)
 Pubali Green Prantik
Long Term Finances
 Term Loans
 House Building Loan
 Term Loans to FIs
 Pubali Mortgage
 Term Loans for SME
 Pubali Protiva (Term)
 Term Loan under direct Green Finance
Work Order/Construction business finances
 Over Draft (Bid Bond)
PUBALI BANK

 Overdraft (Earnest Money)

 Bank Guarantee/ Performance Guarantee
 Over Draft (Work Order)

Consumer Loans
 Personal Loan
 Pubali Star (Demand Loan for Professionals)
 Car Loan
 Flat Purchase Loan
 House hold Durable Loan
 Medical Equipment Loan
 Teacher’s Loan Scheme
 Non-Resident Credit
 House Renovation Loan
 Education Loan
 Pubali Abashon

Special SME Loans

 Pubali Suborno
 Pubali Sujon
 Pubali Kormouddug
 Pubali Prochesta (Continuous)
Special Agri Credit Program
 Pubali Integrated Animal Husbandry &
Biogas Plant Loan
 Pubali Beef Fattening Loan
 Pubali Bullock Loan
 Pubali Irrigation/Agricultural Equipment Loan
 Pubali Milch Cow/Buffalo Loan
 Pubali Poultry Firm Loan
 Agri Credit under concessional rate
Lease Financing
Loan under Re-Finance Scheme

TRADE FINANCE
Import Finance
 Letter of Credit (L/C)
 Loan Against Trust Receipt (LATR)
PUBALI BANK

 Loan Against Import Merchandise (LIM)

Export Finance
 Back to Back Letter of Credit (L/C)
 Packing Credit (PC)
Bills
 Payment Against Document (PAD)
 Foreign Bill Purchase (FBP)
 Inland Bill Purchase (IBP)
Foreign Bank Guarantee
PUBALI CARD
Pubali Debit Card
Pubali Credit Card

SERVICES
ATM Service
Remittance Service
Locker Service
Online Banking
Internet Banking
Pubali Cash (Fund Transfer facilities for
unbanked people)

TREASURY OPERATION
Money Market & Capital Market
< Inter Bank Call/Over Night Lending & Borrowing
< Term Money lending & Borrowing
< SWAP & DEPO
< Repo/Reverse Repo
Fixed Income & Investment
Treasury Bills/Bonds to Inter-bank
< Term Placement to NBFI
< Equity Instrument
< Subordinated Bond
Foreign Exchange & Corporate Sales
< Spot/Forward in USD/BDT
< Spot/Forward in Major Cross Currencies

OFF-SHORE BANKING UNIT (OBU)

< Bill Discounting UPAS
< Financing to AD for export bill discounting
Term Loan
PUBALI BANK

Product & Services of

Pubali Bank Securities Limited
(A subsidiary of Pubali Bank Ltd.)

BROKERAGE SERVICE
< Trade execution (Buy & Sale) through both
DSE and CSE
< Automatic process of IPO subscription without client’s presence
< SMS and e-mail services
< Awareness and guidelines for investors
< Confidential DSE & CSE Trading booth
< Large open trading floor
< DSE Mobile/Internet trading facility

MARGIN LOAN
< Margin Loan facility to the clients with minimum interest rate

CDBL SERVICES
< BO Accounts Opening & Maintenance (RB
NRB, Company etc.)
< Dematerialization & Re-Materialization of
Shares
< Pledging, Un-Pledging and Confiscation of
Shares
< All other services as full service DP

PORTFOLIO INVESTMENT
< Maintenance of own portfolio investment
Through stock dealing a/c

When I am chief financial officer of the bank the different strategies

would I take to raise and use of the funds
PUBALI BANK

A chief financial officer (CFO) is the senior executive responsible for managing the financial
actions of a company. The CFO's duties include tracking cash flow and financial planning as
well as analyzing the company's financial strengths and weaknesses and proposing corrective
actions.
The strategies I would take to raise and use of the funds
Banks are an important part of the economy. Along with deposits and savings accounts, banks
are also involved in lot of other activities to raise money. Like all other businesses banks also
need to raise capital. Banks raise capital through various financial investments it provides for
different kinds of customers.

How to raise capital

Banks raise capital by providing loans, savings, deposits, credits and other financial techniques.
Your money is safe in bank accounts. Instead of doing transactions in cash, you can just let your
bank do it for you. One can borrow money from the bank in the form of personal loans, home
loans or other loans for business purposes. Banks raise capital by charging interest on these
loans. The interest charged by the bank is according to the risk involved. Therefore, if there is
more risk involved, banks charge more interest. Interest charged by banks to raise capital also
depends on the number of customers who want a particular loan. If there are a large number of
customers involved, the bank charges less interest. The interest charged by banks is the main
way to raise capital by banks. The bank lends money to its borrowers and charges interest on it.

How to use funds

For most banks, loans are the primary use of their funds and the principal way in which they earn
income. These loans come in the form of consumer lending, automobile lending, educational
loans and even credit card lending. Some banks also invest in bonds and bills and other securities
but the primary use of funds is for borrowing, however, there are major risks involved with these
uses Credit risk is arguably the most obvious risk to a bank. A bank's business model is basically
predicated on the idea that the large majority of lenders will repay their loans on time, but a
certain percentage will not. So long as the bank's estimates of repayment rates are accurate, or
conservative, there are few problems. When a bank fails to adequately estimate and price the rate
of losses, or when economic conditions change significantly, banks may face higher levels of bad
debt which can shrink the bank's capital reserves to an unacceptable level or fail altogether.