IFIC Bank Annual Report 2017 PDF

Fo c u s i n g o n Yo u r I n t e r e s t s
ANNUAL
REPORT
2017
Fo c u s i n g o n Yo u r I n t e r e s t s
Country’s 1st public-private partnership bank model was
established through IFIC Bank and it has been a journey of
more than four decades for partnering progression with you.
So, we have always been designing our services, products
and benefits focusing on your interests. We are continuously
investing on IT infrastructure, human resource, process and
procedures, innovative services and products. We are ready
to offer the best-in-class banking experience to you and
believe these refinements help us ‘going together, growing
together’.
HIGHLIGHTS
OF
YEAR 2017
Assets
$ 253,249 m
+28.5% Investments
Deposits $ 27,858 m
$ 200,206 m +10.5%
+25.0%
Market
Capitalization
Mortgage
Advances
Loans
$ 21,515 m
$ 179,264 m $ 26,209 m
+30.7%
+108.6%
Investment in
Human Capital
Operating
$ 25 m Profit
CRAR Participants 3,394
12.57%
$ 4,414 m
182 Training +29.1%
programs
ROE PAT
12.39% Total Equity $ 2,068 m
$ 20,539 m +70.3%
+60%
DIRECTORS’
1
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DIRECTORS’
2 Annual Report 2017 REPORT
CONTENTS
DIRECTORS’
3
PARTICULARS PAGE NO.
Rationale of the Cover Inner Front
Highlights of Year 2017 1
IFIC Preview
Letter of Transmittal 6-7
Vision 8
Mission 8
Core Values 9
Ethical Principles 10-12
Code of Conduct 11
Business Ethics 12
HR Compliance 12
Strategic Priority 13
Cautionary Statement Regarding Forward Looking Approach 14
Corporate Profile 15
Global Corporate Structure 16
Milestones in the Development 17
Information on Corporate Governance 18-71
Composition of Board and its Committees 19
Photograph of Board of Directors 20-21
Directors’ Profile 22-23
Senior Executives 24
Chairman’s Message 25-27
Managing Director & CEO’s Review 28-30
Directors’ Report 31-51
Report of the Executive Committee 52-53
Report on the Activities of the Audit Committee 54-56
Report of the Risk Management Committee 57-58
Corporate Governance Practices 59-71
Compliance Report on BSEC’s Notification 62-69
CEO and CFO’s Declaration to the Board 70

Certification on Corporate Governance 71
Management Discussion & Analysis 72-81

Value Added Statement 80
Market Value Added Statement 80
Economic Value Added Statement 81
DIRECTORS’
PARTICULARS PAGE NO.
DuPont Analysis 81
Human Capital 81-83
Branding and Promotional Activities 83
Media Highlights 2017 84-86
Shareholders’ Information 87-94
Directors’ Shareholding Status 88
Distribution of Shareholding 88
Five Years Performance of the Bank 89-90
Five Years Graphical Presentation 91-92
Market Price Information 93
Financial Calendar 94
Redressal of Investors’ Complaints 94
Glimpses of the 40 AGM

th
95-96
Market Discipline - Disclosures on Risk Based Capital Under Basel-III 97-112
Report on Sustainable Finance (Green Banking) 113-114
Report on Risk Management 115-126
Corporate Social Responsibility 127-128
Products and Services 129
Financial Statements 130-227
Independent Auditors’ Report to the Shareholders 131-132
Consolidated and Separate Financial Statements 133-222
Financial Highlights on the Overall Activities 221
Financial Statements of Off-shore Banking 223-227
Financial Statements of the Subsidiaries 228-252
IFIC Securities Limited (including Directors’ and Auditors’ Report) 229-245
IFIC Money Transfer (UK) Limited (including Directors’ and Auditors’ Report) 246-252
Important Events 2017 253-256
Branch Network 257-269
Global Network based on Portfolio 267-269
Global Network of Correspondent Banks 270-272
Notice of the 41st Annual General Meeting 273-274
Attendance Slip 275-276
Proxy Form 277-278
DIRECTORS’
5
LETTER OF
TRANSMITTAL
DIRECTORS’
All Shareholders of IFIC Bank Limited
Bangladesh Bank
Bangladesh Securities and Exchange Commission
Registrar of Joint Stock Companies & Firms
Dhaka Stock Exchange Limited
Chittagong Stock Exchange Limited
Annual Report for the year ended 31 December 2017
Dear Sir,
We are pleased to present before you a copy of the Annual Report 2017 along with Audited Financial
Statements including consolidated and separate Balance Sheet as at 31 December 2017, Profit and Loss
Account, Cash Flow Statement, Statement of Changes in Equity, Liquidity Statement for the year ended 31
December 2017 with the notes thereto of IFIC Bank Limited and its Subsidiaries for your kind information and
record.
Yours sincerely,
Md. Mokammel Hoque

Company Secretary
LETTER OF
7
TRANSMITTAL Annual Report 2017
VISION
At IFIC, we want to be the preferred financial
service provider through innovative,
sustainable and inclusive growth and deliver
the best in class value to all stakeholders.
MISSION
Our Mission is to provide service to
our clients with the help of a skilled
and dedicated workforce whose
creative talents, innovative actions and
competitive edge make our position
unique in giving quality service to all
institutions and individuals that we
care for.
We are committed to the welfare and

economic prosperity of the people
and the community, for we derive
from them our inspiration and drive for
onward progress to prosperity.
In an intensely competitive and complex

financial and business environment,
we particularly focus on growth and
profitability of all concerned.
DIRECTORS’
CORE VALUES
Integrity : Upholding integrity in all that we do, always,
everywhere.
Fairness : Striving to offer the best to our customers
equitably with transparency.
Innovation : Encouraging and nurturing creativity.
Commitment : Committed to excellence in customer service
and maximization of stakeholders’ value
through teamwork.
DIRECTORS’
9
ETHICAL
PRINCIPLES
DIRECTORS’
Code of Conduct
Ethic is the integrity measure, which evaluates Property & Information of IFIC Bank
the values, norms, rules that constitute the base Key responsibility of an employee of IFIC Bank
for individual and social relationship from a moral Limited is to protect and safeguard the organization’s
perspective. Professional ethics regulates the property by following the operational and IT security
relations between individuals within a professional manual, policy & guideline meticulously, ensure
group and their relations with the community information confidentiality of its clients with utmost
whereas organizational ethics defines the code of security. Unless asked by any lawful and competent
conduct in an organization. court/authority, exchanging or disclosing of
Code of Conduct/Ethics is the integrity measure information will be treated as a serious violation of
and a guiding principle to operate the Bank and to ethical standard and shall be treated as a breach of
conduct daily business with customers, vendors, contract.
competitors, regulators, other agencies, media and Conflict of Interest
anyone else who has a stake in the Bank or with Whatsoever the circumstances, the employee
whom the Bank has a contact. IFIC Bank’s Code of must avoid all situations that might lead to a real
Conduct/Ethics sets forth the guiding principles by or apparent material conflict between themselves
which we operate our Bank and conduct our daily regarding their interests, duties and responsibilities
business with our customers, vendors, competitors, as employees of the Bank. Availing any kind of undue
regulators, different agencies, media and anyone or illegal benefit/facilities irrespective of any form,
else with whom we have contact. insider trading, abusing confidential information
All members of the Board of Directors and its are treated as malpractice and deviation from the
committees, employees of all levels and categories required standard of services.
of IFIC Bank Limited, business partners, service Fair Dealing to Counter Parties
providers and receivers are expected to display All relationships with external counter-parties are
the highest standards of professionalism and conducted in professional and impartial manner. IFIC
commitment to ethics in all of their conducts. It is also Bank Limited seeks to outperform its competitors
strongly expected that they all in every act and at all fairly and honestly through superior performance
times would pay due respect, care and consideration and never through unethical or illegal business
to others by putting the public interest first. practices. Vendor selection and hiring decisions
Member of all levels of the Bank are individually as are made objectively and in the best interest of
well as collectively committed and responsible to the organization based on evaluation of integrity,
excel in practice of corporate governance principles suitability, price, delivery of goods/service, quality
in its institutions and activities by placing due and other pertinent factors. Employee’s personal
attention on compliance of best ethical standards relationship with contractors, suppliers and vendors
for enhancing its credibility and transparency. shall be disclosed to the appropriate level of
authority at the time of entering into the negotiation
IFIC Bank always employs its resources, policies, and should not influence decisions made on behalf
procedures, processes, systems and recognizes the of the Bank.
honesty, integrity, sound judgment of its employees
essential to its reputation and success. These Anti-Money Laundering & Combating Terrorism
principles are applied to all the employee of the Bank Financing
and all of its wholly owned subsidiaries to achieve its IFIC Bank Limited prohibits doing business with drug
goal putting the public interest first. These principles traffickers, money launderers and other criminal
are delineated below: activity very strictly. IFIC Bank formulates Anti-
Money Laundering guidelines and ensures best
Responsibility
practice to take appropriate preventive measures
As a financial institution entity, the responsibility of
against fraud and money laundering and co-
IFIC Bank includes responsibility to its shareholders,
operate with other Banks and relevant institutions,
customers, community/society even commitment
establishments and government agencies for this
to the environment to preserve the lawful benefits
purpose.
and interests of its stakeholders. Management
makes best effort to maximize Bank profit fulfilling Transparent & Accurate Reporting
customer needs ensuring customers satisfaction. IFIC Bank Limited ensures its Financial, Tax and other
While lending/financing apart from business aspect, reports and communication are true, complete and
Bank has firm commitment to environmental and accurate and must not be misleading. Employees
climatic protections to support the process of will ensure that records, data and information
sustainable economic growth of the country. owned, collected, used and managed by him/her
CODE OF
11
CONDUCT Annual Report 2017
for the organization are accurate and complete, Honesty and Integrity
maintaining highest degree of integrity. IFIC Bank The Bank will adhere to honesty and integrity in
Limited maintains transparency of records as per conducting its business.
the policy of the organization in sufficient details so
Compliance with Laws and Regulations
that these may reflect accurately the Organization’s
The Bank will conduct its business in accordance
transactions.
with the law and regulations and will not assist,
Zero Tolerance to Violence in the Workplace encourage or support any wrongful transactions or
IFIC Bank Limited strictly prohibits any acts of activities.
violence or threats of violence by any employee
Good management and efficient and effective
against any other person at any time. Mutual
Internal Control
understanding and respect toward all employees is an
The Bank will put in place good management
essential element for excellence in professionalism,
systems and risk management systems, as well as
existence of safe and healthy work place, and
efficient and effective internal controls.
maintenance of a corporate culture, which serves
the needs of the community. The organization has to Standards
bear zero tolerance for violence against any member The Bank will comply with various standards which
of the workforce or its property are generally acceptable for conducting the banking
business.
Employee Conduct outside the Office Premises
Employees and representatives of IFIC Bank Concern for Stakeholders
Limited shall realize that their conduct outside the The Bank realizes the importance of proper conduct
workplace reflect on their place of employment and to various stakeholders with appropriate co-
thus shall take necessary actions to ensure that the operation and mutual support. The Bank will treat
above mentioned service conduct must encompass its customers, counterparties or competitors with
outside workplace activities as well so that behavior/ mutual good understanding and co-operation.
actions do not compromise the business interests, Preservation of the Bank’s Reputation
safety and security or confidentiality of their place of The Bank will uphold a good reputation and will
employment. refrain from engaging in any act that may jeopardize
Fair & Equitable Employment Opportunity its reputation.
IFIC Bank Limited is committed to ensure equal
opportunity in employment on the basis of HR Compliance
meritocracy i.e. individual merit and personal
qualification. The Bank is also committed to provide IFIC Bank HRM Division maintains compliance in all
a work environment free from any harassment on organizational levels in order to develop and maintain
ground of religion, age, gender, family background, ethical culture across the institution. HRM Division
ethnicity, personal appearance etc. To ensure encourages the employee to abide by the rules and
energizing workplace, the Bank is responsible to regulations of the Bank along with all applicable
keep the workplace friendly, congenial, transparent laws of the country and promotes the same through
and emphasize on co-operation among all employees continuous training programs.
complying with the laws, rules of the regulatory Moreover, HRM Division has separate disciplinary
bodies. rules namely IFIC Bank Employees (Discipline and
Commitment to the Environment Appeal) Rules 2003 which focuses on the quasi-
Environmental and climatic protections are among judicial proceedings for handling misconducts
the most pressing global challenges of the time. committed by any delinquent employee.
All of these are to be taken into account in all areas
of lending/financing. Emphasizing on the areas of
energy and climate change while lending, bankers
would support the process of sustainable economic
growth of the country.
Business Ethics
IFIC Bank Limited believes that the Business Ethics
Practices provides a foundation for the stability and
sustainable growth of the Bank, and supports the
Bank’s efforts in achieving its stipulated goals. The
Bank, therefore, encourages all parties to conduct
business and perform their duties in accordance
with this Business Ethics Practices.
CODE OF
12 Annual Report 2017 CONDUCT
STRATEGIC
PRIORITY
zz To strive for sound business growth by ensuring customer satisfaction through quality and timely
services
zz To manage and operate the Bank in the most efficient manner to ensure achievement of goals
zz To maintain adequate capital flow to support further growth
zz To ensure effective and efficient risk management for sustainable business growth
zz To diversify loan portfolio through structured finance and expansion of Corporate, SME, Agri and
Retail businesses
zz To mount state-of-the-art technologies and adopt innovative ideas for financial inclusion
zz To groom human resources for serving customers efficiently
zz To increase brand visibility by creating positive image of the Bank
zz To be a trend-setter in serving the society and remain responsive to the environment
zz To ensure sound corporate governance practices
zz To facilitate mobility in banking by up-gradation of Internet and Mobile Banking
zz To add value for all stakeholders.
DIRECTORS’
13
CAUTIONARY STATEMENT REGARDING
FORWARD LOOKING APPROACH
This Annual Report and Financial Statements of This statement may change based on the domestic
the year 2017 contains certain forward looking and global economic and financial condition,
statements with respect to the financial condition, natural calamities, movement of interest rate of
results of operations and business of the Bank. both lending and deposit, changes or adoption of
This statements are not historical facts, including regulatory policies, market volatility, changes in the
statements about the Bank’s beliefs and accounting policy, future forex market condition,
expectations. Words such as ‘expects’, ‘anticipates’, political condition of the country, technological
‘intends’, ‘plans’, ‘believes’, ‘seeks’, ‘estimates’, changes in banking sectors, changes in consumer
‘potential’ and ‘reasonably possible’, variations of behavior and other factors that affects the overall
these words and similar expressions are intended operation of the bank’s.
to identify forward looking statements. These The Bank will not undertake any obligation to revise
statements are based on current plans, estimates or update any one of the forward looking statements
and projections, and therefore undue reliance contained in this Annual Report, regardless of
should not be placed on them. Forward looking whether those statements are affected as a result of
statements speak only as of the date they are made. new information, future events or otherwise.
DIRECTORS’
Corporate Profile
Name of the Company Off-shore Banking Unit (OBU)
International Finance Investment and Commerce IFIC Bank Limited - OBU
Bank Limited (IFIC) Federation Branch, FBCCI Building,
60, Motijheel C/A, Dhaka
Legal Form
IFIC Bank Limited was incorporated in Bangladesh Auditors
and registered with the Registrar of Joint Stock M. J. Abedin & Co.,
Companies & Firms as a public company limited by Chartered Accountants
shares
Legal Adviser
Company Registration Number Ahsanul Karim
C-4967, Dated: 08 October 1976
Tax Consultants
Authorized Capital Adil & Associates
BDT 20,000 million
Credit Rating Agency
Paid up Capital Credit Rating Agency of Bangladesh (CRAB) Limited
BDT 11,953 million
Chairman
Listing Status Salman F Rahman
Listed with Dhaka Stock Exchange Ltd. (DSE) and
Chittagong Stock Exchange Ltd. (CSE) in 1986 and Managing Director & CEO
1997 respectively M Shah Alam Sarwar
Market Category Chief Financial Officer

‘A’ Category Dilip Kumar Mandal
Tax Payer Identification Number (TIN) Company Secretary

135055865054 Md. Mokammel Hoque
VAT Registration Number No. of Employees

19081167140 2,512
Business Identification Number (BIN) No. of Branches

000136288 141
Subsidiary Companies No. of Shareholders

IFIC Securities Limited 44,421
IFIC Money Transfer (UK) Limited
Investors’ Relation
Registered Office IFIC Tower (17th floor)
IFIC Tower, 61, Purana Paltan, 61, Purana Paltan, Dhaka-1000
G. P. O. Box: 2229, Dhaka-1000 Hotline: 09666716250
IP Phone No.: 09666716250 (Hunting), Tel: 9563020
Fax: 880-2-9554102, Swift: IFIC BD DH
E-mail: [email protected]
Website: www.ificbank.com.bd
CORPORATE
15
PROFILE Annual Report 2017
GLOBAL
CORPORATE STRUCTURE
IFIC Securities Limited IFIC Money Transfer Nepal Bangladesh

(UK) Limited Bank Limited
A fully owned subsidiary A fully owned subsidiary A joint venture
in Bangladesh in United Kingdom commercial Bank
in Nepal
Oman Exchange LLC

MCB Bank Limited,
A joint venture Pakistan
exchange company
in Oman A commercial Bank
in Pakistan
DIRECTORS’
Milestones in the Development
Established as a joint venture Investment & Finance Company with

1976
the Govt. of Bangladesh
Commenced operation in Foreign Exchange Business in a limited scale 1980
Obtained permission from the Govt. to operate as a commercial Bank,

1982 Set up its first overseas joint venture (Bank of Maldives Limited) in Maldives
(IFIC’s share in Bank of Maldives limited was sold to Maldives Govt. in 1992)
Commenced operation as a full-fledged commercial bank in Bangladesh 1983
Set up a joint venture Exchange Company in the Sultanate of Oman, titled

1985 Oman Bangladesh Exchange Company (Subsequently renamed as
Oman Exchange LLC)
Set up its first overseas branch at Karachi, Pakistan 1987
1993 Set up its second overseas branch at Lahore, Pakistan
Set up its first joint venture in Nepal, titled Nepal Bangladesh Bank Limited 1994
Set up second joint venture in Nepal for lease financing, titled

1999
Nepal Bangladesh Finance & Leasing Co. Ltd. (merged with NBBL in 2007)
Set up a new Bank in Pakistan, NDLC-IFIC Bank Limited (Subsequently

renamed as NIB Bank Ltd.) and the Overseas Branches of IFIC and a local
2003
leasing company, NDLC were amalgamated with and into it. (Subsequently,
NIB Bank marged with & into MCB Bank Limited )
Acquired MISYS solution for real time online banking.

2005 Core Risk Management implemented.
Launched VISA branded Credit Card (completed full range of Cards i.e.
2007
Debit, Credit & Prepaid by 2010)
2010 Set up Off-shore Banking Unit (OBU)
Established a fully owned exchange company named

IFIC Money Transfer (UK) Limited 2011
2013 Achieved the landmark of BDT 100,000 million deposit
Launching of IFIC Mobile Banking 2014
2015 Crossed the landmark of BDT 200,000 million in Foreign Trade business
Inauguration of IFIC Tower at 61, Purana Paltan, Dhaka - 1000 2016
Launched an innovative product IFIC Aamar Account, combining benefits of current &
savings accounts, FDR, credit cards etc.
2017
Became market leader in Home Loan product under retail banking segment.
Introduced One Stop Service model in the branches for the first time in Bangladesh.
DIRECTORS’
17
INFORMATION ON
CORPORATE GOVERNANCE
DIRECTORS’
COMPOSITION
OF BOARD AND
ITS COMMITTEES
Board of Directors
Chairman
Salman F Rahman
Directors
Anwaruzzaman Chowdhury Audit Committee of the Board
(Independent Director)
Chairman
Rabeya Jamali Rabeya Jamali
(Independent Director)
Members
Jalal Ahmed Anwaruzzaman Chowdhury
(Govt. Nominated Director) Jalal Ahmed
A. R. M. Nazmus Sakib Secretary to the Committee
(Govt. Nominated Director) Md. Mokammel Hoque
Quamrun Naher Ahmed
(Govt. Nominated Director)
Managing Director & CEO

Risk Management Committee
M Shah Alam Sarwar of the Board
Company Secretary Chairman

Md. Mokammel Hoque Jalal Ahmed
Members
Rabeya Jamali
Executive Committee A. R. M. Nazmus Sakib
of the Board Quamrun Naher Ahmed
Secretary to the Committee
Chairman
Md. Mokammel Hoque
A. R. M. Nazmus Sakib
Member
Quamrun Naher Ahmed
Secretary to the Committee

Md. Mokammel Hoque
DIRECTORS’
19
BOARD OF DIRECTORS
DIRECTORS’
DIRECTORS’
21
DIRECTORS’ PROFILE
Mr. Salman F Rahman is an eminent business personality of the country. He is
the Vice-Chairman of BEXIMCO Group - the largest private sector group in
Bangladesh. Founded in 1970 as a commodities trading company, the Group
now has operations and investments across a wide range of industries
including textiles, trading, marine food, real estate development, hospitality,
construction, information and communication technologies, media,
ceramics, aviation, pharmaceuticals and energy. He was the President of
FBCCI, the apex organization of businessmen of the country. Currently, he is
the Chairman of IFIC Bank Limited, GMG Airlines Limited and Abahani
Limited. He is associated with many social and charitable organizations.
Mr. Salman F Rahman

Chairman
Mr. Anwaruzzaman Chowdhury is an MBA from London, UK. He is the

Chairman of Kipling in the UK. He is associated with many social and
charitable organizations and trusts. He is a member of the Audit Committee
of the Board of Directors of IFIC Bank Limited. He is a Director of IFIC Money
Transfer (UK) Limited, UK and also an Alternate Director of Oman Exchange
LLC, a joint-venture operation of the Bank in the Sultanate of Oman.
Mr. Anwaruzzaman Chowdhury

Independent Director
Ms. Rabeya Jamali is an Advocate, Supreme Court of Bangladesh and Partner,

Jamali & Morshed. She did her LL.B. (Honours) from the University of Dhaka,
Dhaka, Bangladesh and LL.M. in Banking and Financial Law from Boston
University, School of Law, Boston, MA, USA. She attended workshops,
seminars and conferences at home and abroad. She is a member of the
Bangladesh Supreme Court Bar Association. Ms. Jamali has core expertise in
Commercial Contracts, Construction Contracts, Joint Ventures, SPV relating
to infrastructural development projects, Private-Public Partnership Projects,
Telecommunication related infrastructure, Power and Energy, Company Law,
Financial and Banking Laws, Securities Laws and related Arbitration. She is
the Chairman of the Audit Committee and a member of the Risk
Management Committee of the Board of Directors of IFIC Bank Limited. She
is the Director of IFIC Money Transfer (UK) Limited, UK and IFIC Securities
Limited. She is also an Alternate Director of Nepal Bangladesh Bank Limited,
Nepal.
Ms. Rabeya Jamali

Independent Director
Mr. Jalal Ahmed is an Additional Secretary to the Government of the

People’s Republic of Bangladesh. He was nominated as Director to the
Board of IFIC Bank Limited on 13 November 2012 by the Ministry of
Finance, Government of Bangladesh. Mr. Jalal did his Honours & Masters in
Public Administration from the University of Dhaka. He is also one of the
Directors of BATBC, BSCCL and Bangladesh Services Limited. He is the
Chairman of the Risk Management Committee and a member of the Audit
Committee of the Board of Directors of IFIC Bank Limited. He is the
Chairman of Nepal Bangladesh Bank Limited, Nepal, IFIC Money Transfer
(UK) Limited, UK and IFIC Securities Limited. He is also an Alternate
Director of Oman Exchange LLC, a joint-venture operation of the Bank in
the Sultanate of Oman.
Mr. Jalal Ahmed

DIRECTORS’ Director
DIRECTORS’ PROFILE
Mr. A. R. M. Nazmus Sakib is an Additional Secretary at the Ministry of

Finance, Government of the People’s Republic of Bangladesh. He was
nominated as Director to the Board of IFIC Bank Limited on 19 June 2012 by
the Ministry of Finance, Government of Bangladesh. He is a post - graduate
in Botany and also obtained M.Sc. Degree in Development Finance. He is the
Chairman of the Executive Committee and a member of the Risk
Management Committee of the Board of Directors of IFIC Bank Limited. He
is the Director of IFIC Money Transfer (UK) Limited, UK and Oman Exchange
LLC, a joint-venture operation of the Bank in the Sultanate of Oman.
Mr. A. R. M. Nazmus Sakib
Director
Ms. Quamrun Naher Ahmed is an Additional Secretary at the Financial

Institutions Division, Ministry of Finance, Government of the People’s
Republic of Bangladesh. She was nominated as Director to the Board of IFIC
Bank Limited by the Ministry of Finance, Government of Bangladesh.
Ms. Ahmed did her Honours & Masters in Economics from the University of
Dhaka. She also obtained M. Phil in Social Change from University of
Science and Technology, Norway. She attended various Training, Seminars
and Conferences at home and abroad. She is the Member of the Executive
Committee and the Risk Management Committee of the Board of Directors
of IFIC Bank Limited. She is the Director of IFIC Securities Limited, IFIC
Money Transfer (UK) Limited, UK and Nepal Bangladesh Bank Limited,
Nepal.
Ms. Quamrun Naher Ahmed

Director
Mr. Shah A Sarwar joined IFIC Bank Limited as Managing Director & CEO on
02 December 2012. Prior to joining the IFIC Bank Limited, he was the
Managing Director & CEO of Trust Bank Limited. Mr. Sarwar started his
career as Management Trainee at ANZ Grindlays Bank in 1982 and
subsequently held senior management position at ANZ Grindlays Bank,
Standard Chartered Bank, American Express Bank. He was also the
Managing Director & CEO of Industrial Promotion and Development
Company of Bangladesh Limited (IPDC), Premier Bank Limited and
Additional Managing Director of United Commercial Bank Limited. Over the
last 36 years, Mr. Sarwar’s career evolved as a well rounded banker with
expertise in General Management, Client Coverage, Risk Management,
Operations and IT Management. He has core expertise in Strategic Risk
Management, Business Process Re-engineering, Creation of New Lines of
Business, Change Management and Automation Project Management. He
Mr. M Shah Alam Sarwar
obtained the highest level of accreditation in credit risk management and is
a Six Sigma Belt holder. He is a post-graduate in Economics from the
University of Dhaka and holds MBA degree from Victoria University,
Australia. He held positions in Australia, United Arab Emirates and Pakistan.
He attended various Training, Seminars and Conferences at home and
abroad – notably, in United Kingdom, Australia, United States, Singapore,
Hong Kong, United Arab Emirates and Malaysia. He also attended
Management Courses in Columbia University, Cambridge University, Oxford
University, University of Berkley and INSEAD.
DIRECTORS’
23
SENIOR
EXECUTIVES

M Shah Alam Sarwar
Deputy Managing Director First Vice President

Muhammad Mustafa Haikal Hashmi Mir Iqbal Hossain
Raihan Ul Ameen Sohel Mahmud Zahiduzzaman
Shah Md. Moinuddin Md. Akbar Ali
Md. Nurul Hasnat Mohammad Sahin Uddin
Senior Executive Vice President Vice President

Md. Bader Kamal Arzoo Mand Parveen Banu
Syed Mansur Mustafa Ahmed Sayeed
Khan Abu Roushan Mohammad Mostofa Kamal Navedul Islam
Ashim Chowdhury A. M. Mahmud Hossain
Syed Fazle Ahmed Md. Selim Talukder
Mohoshin Uddin Ahmed
Executive Vice President A. T. M. Raziur Rahman
T. I. M. Rawshan Zadeed Md. Mostaque Hossain Chowdhury
Md. Badrul Alam Md. Salah Uddin
Iqbal Parvez Chowdhury Abul Kalam Mojibur Rahman
Md. Shahjahan Miah Anwara Begum
Md. Rafiqul Islam Md. Ali Imam Khan
Ferdousi Begum Morshed Ali
Md. Zabid Iqbal Tauheed Mahmud Hussain
M. Mozibar Rahman Sharmilla Manzoor
Dilip Kumar Mandal Md. Saiful Islam
Helal Ahmed Nazmun Nahar Begum
Md. Zulfiquer Ali Chakder A. B. M. Mohsin Kamal Molla
Nurul Basher Abdul Mamun Md. Asaduzzaman
Md. Nazmul Haque Talukder
Senior Vice President A. K. M. Zahirul Islam
Shaikh Sohail Khurshid Md. Mozammel Haque
Syed Hassanuzzaman Md. Mokammel Hoque
Isteaque Hassan
Mohammad Mahmood
Mir Golam Mowla
Md. Abdullah Al Masum
DIRECTORS’
DIRECTORS’
25
Dear Shareholders,
Assalamu Alaikum. can also offer new growth opportunities, which are
As another financial year comes to an end, it gives less subject to the vested interests of the existing
me great pleasure to welcome all of you, our valued sectors.
shareholders, on behalf of the members of the Board Bangladesh Bank has now taken up a consultative
of Directors, to the 41st Annual General Meeting of initiative of formulating Guidance Notes on the do’s
your Bank - IFIC Bank Limited and to present to you and don’ts of socially responsible financing to better
the Audited Financial Statements and Annual Report foster social cohesion, with output initiatives that
for the financial year 2017. At the very outset, I would promote entrepreneurship, create more and better
like to express my profound gratitude and sincere jobs, and protect environment.
thanks for your continued belief, passion, support
Alongside price and micro-financial stability
and patronage extended to the Bank towards making
objectives, BB’s monetary and financial policies
IFIC as a foremost brand of the country.
embrace inclusively and environmental sustainability
The Directors’ Report on Financial Statements & dimensions in pursuit of employment creation-
Internal Control, the Financial Statements for the focused inclusive growth support (targeting
year ended on 31 December 2017 together with the SMEs, agriculture and green initiatives), in tune
Auditors’ Report thereon are already in your hands. with the government’s SDG-focused sustainable
The Annual Report gives a detailed overview of your development initiatives.
Bank’s performance during the year 2017 which has
In a major leap forward, Bangladesh has become
been presented through various quantitative and
eligible to graduate to a developing country from a
qualitative parameters.
least developed one as it met all the three criteria
According to the final estimate of Bangladesh for the first time for getting out of LDC bloc. The
Bureau of Statistics (BBS), GDP growth of FY2016- three criteria are Gross National Income (GNI) per
17 stood at 7.28 percent, 0.17 percent higher from capita, Human Assets Index (HAI) and Economic
7.11 percent of the previous fiscal year. Like previous Vulnerability Index (EVI).
years, major boost of growth has come from the
According to the UN’s graduation threshold, the
industrial sector followed by the services sector.
GNI per capita of a country has to be US$ 1,230 or
After declining through FY2017, average inflation above. Bangladesh’s GNI per capita is now US$ 1,610
has been gradually edging up in the recent months, (according to BBS). In terms of the HAI, a country must
reaching 5.7 percent in December 2017. The inflation have a score of 66 or above. Bangladesh’s score is
dynamics reflected rising food prices, a result of now 72.9 - well above the threshold. In the economic
both flood-related disruptions and higher global vulnerability index (EVI), a country’s score has to be 32
prices. Food inflation increased to 7.1 percent (point- or below. Bangladesh’s score is 24.8 in EVI.
to-point) in December 2017, whose impact on overall
Bangladesh is the only country to have met all the
inflation (5.8 percent in December, point-to-point)
three criteria at the same time for becoming eligible
was moderated by declining non-food inflation, at
to graduate from the LDC bloc. However, it will have
3.8 percent in December 2017.
to pass two more reviews in 2021 and 2024 to get
In FY2017, Bangladesh’s overall balance of payments out of the LDC list through maintaining its position in
position was on edge due to a deficit from investment all the three categories for the next six years.
and food-related imports. Import coverage of foreign Last year, as an outcome of inclusive banking, by
exchange reserve, at US$ 33.2 billion or around pursuing excellence in customer care through
6 months of imports in December 2017, remain customer relevance, by innovating consistently
adequate. However, during the period, overseas to deliver technology driven solutions to the
employment increased considerably by 32.12 percent banking industry and through continuous product
from the previous year. innovations, we have carved a veritable niche for
Bangladesh Bank, for the last few years, has taken ourselves in the eyes of our customers. And it is
various measures, initiatives and programs aimed thus that your point of view remains our point of
at ingraining a socially responsible financing ethos consideration.
and mainstreaming financial inclusion initiatives. The Bank also has a pleasant involvement and
A strategic focus has been placed on nudging proactive participation in benevolent activities. As
finance toward fostering social cohesion by devising a trend-setter, the Bank is gradually organizing its
policies to create a stronger base of the pyramid. involvements in the more structured CSR initiative,
Furthermore, considering the population density following the Guidelines of Bangladesh Bank.
and vulnerabilities to weather shocks and climate
change, environmental sustainability is the central Our Management Team, like previous year, in 2017
part of the national growth strategy. Green initiatives also, maintained their winning streak, receiving
CHAIRMAN’S
26 Annual Report 2017 MESSAGE
national and international accolades for transparency, My sincere appreciation is also to the Managing
good governance, sustainability, people practices, Director & CEO, the Management Team and the
brand management, CSR and IT applications. IFIC Bank Team for making 2017 yet another year
We intend to grow our business in a sustainable of commendable success and for their continued
pursuit towards achieving the Bank’s objectives
manner by enhancing the quality and efficiency,
exploring potential areas for new investment as well despite the veritable challenges.
as devising new products and focusing on customer We endeavor to serve our customers with the
service. highest levels of convenience, transparency and
We are confident that the Management Team respect. We sincerely appreciate the trust they have
placed on us and looking forward to maintain a long-
possesses the right competencies to capitalize on
term relationship with them.
these opportunities to maintain a higher growth
trajectory for the Bank. As such, your Bank would A special word of thanks to our shareholders again,
concentrate on sharpening its competitive edge by who have been an integral part of the Company’s
improving its business strategies and protecting its journey throughout the year.
credibility through fulfillment of the promises.
Finally, I wish to place on record my appreciation
For the effective governance of the business of the to my fellow Directors for their unstinted support,
Bank, the Board of Directors strikes a balance at a guidance and insight which has helped us to steer
high standard of effectiveness between driving the the organization towards the many successes it has
business forward and controlling it prudently. achieved till date.
The Board of your Bank continues its effort to set We look to the next financial year with confidence
the right tone from the top of the Bank and tracking and resolute dedication. Let there be good days
progress against potential key risks and reputation ahead for all of us. May the Almighty Allah bestow
issues. I am pleased to report that your Board also His choicest blessings upon us.
continues to function well and is very clearly focused
on its priorities. A strong governance framework is
developed to support the long-term sustainable Allah Hafez.
growth of the Bank.
On behalf of the Board, I wish to place on record
our sincere appreciation to the Government of the
People’s Republic of Bangladesh, Bangladesh Bank,
Bangladesh Securities and Exchange Commission
and other regulatory authorities, various financial
institutions, banks and correspondents at home and Salman F Rahman
abroad for their continued support and guidance. Chairman
CHAIRMAN’S
27
MESSAGE Annual Report 2017
DIRECTORS’
Dear Respected Shareholders,
It is both an honor and a privilege to present the 3,169 million in FY17 which was USD 5,036 million in
summary of financial and operating performance of FY16. The foreign exchange reserves stood at USD
IFIC Bank Limited for the year 2017. It has been more 33.4 billion at the end of FY17 representing around 8
than four decades of successful journey with a vision months of prospective import coverage.
to be the preferred financial service provider through
IFIC Bank Performance
innovative, sustainable and inclusive growth, and to
Deposits of the Bank increased to BDT 200,206
deliver the best in class value to all stakeholders.
million in 2017 from BDT 160,155 million in 2016,
Banking sector passed a stable year in 2017 due to
indicating a growth of 25.0%. Loans and Advances
the political stability of the country. However, the
rose to BDT 179,264 million in 2017 from BDT 137,118
sector faced challenges like increase of interest rate
million in 2016, representing a growth of 30.7%.
from the third quarter of the year 2017, decline of
quality of assets, serious competition among Banks Import of the Bank was BDT 97,908 million in 2017
on deposit hunting etc. Despite this, the Bank has having 5.4% raise while Export of the Bank was
achieved positive parameters by exercising relevant BDT 88,677 million in 2017 having 6.1% fall. Total
policies and risk management frameworks provided Remittance was BDT 19,569 million in 2017 having
by both regulatory authority and the Bank. a drop of 8.3%. Overall Foreign Exchange Business
reduced by 1.2% from BDT 208,672 million in 2016
Macroeconomic Scenario of Bangladesh
to BDT 206,154 million in 2017.
The Bangladesh economy has been able to
maintain a sustained economic growth. Bangladesh Net Interest Income raised by 25.5% from BDT 4,375
economy recorded a 7.3% growth of GDP in FY17 million in 2016 to BDT 5,490 million in 2017 and Net
compared to 7.1% in FY16. This 7.28% growth was Profit after Tax increased to BDT 2,068 million in
largely supported by industry and service sectors. 2017 from BDT 1,214 million in 2016, representing
Continuing the declining trend of inflation since increase of 70.3%.
FY14, year-on-year inflation in FY17 decreased to NPL ratio of the Bank increased to 6.4% in 2017
5.4% compared to 5.9% in FY16. The declining from 5.3% in 2016. Asset size of the Bank stood at
trend in inflation in FY17 was mainly driven by non BDT 253 billion in 2017 against 197 billion in 2016,
food inflation, while food inflation witnessed a sharp indicating a growth of 28.5%.
increase due to devastating flood related crop losses
in the Northeastern haor regions in FY17. In contrast, Capital Adequacy
non food price component was declined due to At the end of Dec-2017, total Shareholders’ Equity
subdued global inflation and favorable regional stood at BDT 20,539 million, which is 60.0% higher
inflation rate. The per capita national income than that of 2016 mostly due to the issuance of
reached at USD 1,610 in FY17, up by USD 145 from Rights Share in 2017. The Bank maintained Capital to
previous fiscal year. Export growth fell sharply from Risk-weighted Asset Ratio (CRAR) of 12.57% under
8.9% in FY16 to 1.7% in FY17, while import witnessed Revised Regulatory Capital Framework for Banks in
a significant growth of 9.0% in FY17 from 5.9% in line with Basel III as against minimum requirement of
FY16 leading to wider trade deficit. Export stood at 11.25% set by Bangladesh Bank for the year ended
USD 34,019 million in FY17 from USD 33,441 million December 31, 2017.
in FY16. Import increased to USD 43,491 million Growth Initiatives Implemented in 2017
in FY17 from USD 39,901 million in FY16. In FY17, zz In 2017, Bank opened 7 new Branches which
remittance inflows declined by 14.5% compared with created a total network of 141 Branches in
the negative growth of 2.5% in FY16. The slowdown Bangladesh of IFIC bank.
of the economy of the Middle East countries
zz IFIC Bank provided a very special focus on
originating from low oil prices and geo-political
collateral based Home Loan Product marketing
situation, appreciation of USD against British Pound
and selling by giving competitive interest rate
Sterling and Euro etc. contributed to such reduction
and quick loan processing service with ensuring
of remittance inflows. The trade deficit widened to
accuracy of the service in 2017 which got
USD 9,472 million in FY17 from USD 6,460 million
tremendous response from the market.
in FY16. Elevated import growth and slow export
growth mainly contributed to the widening of trade zz In 2017, the Bank implemented One Stop Service
deficit in FY17. The services and income account Model in 94 Branches for providing admirable
along with primary and secondary income registered customer service and thus total 130 Branches of
a surplus of USD 7,992 million in FY17. The Current the Bank were converted into One Stop Service
Account Balance turned negative USD 1,480 million Model.
in FY17 and the Capital and Financial Account zz The Bank highly promoted the marketing and
surplus widened to USD 4,493 million in FY17. The selling of ‘Aamar Account’ – a unique Account
overall balance of payments surplus shrank to USD where one can maintain his deposit balance with
MANAGING DIRECTOR
29
& CEO’S REVIEW Annual Report 2017
interest on daily product basis and at the same zz The Bank has donated fund to Biswa Shahitya
time one can avail overdraft facility up to a given Kendra to sponsor its educational activities.
limit. zz IFIC Bank has given assistance to Child Day Care
Risk Management Center of Banks for operating cost.
The Bank vigorously tries to manage risk by its Initiatives for 2018
regular activities. These activities include the zz The Bank will vigorously promote the marketing
analysis, evaluation, acceptance and management and selling of groundbreaking product- ‘Aamar
of risks. Regarding supervision of risk management, Account’.
the Board of Directors performs prime responsibility zz IFIC Bank will continue to give emphasis on
of the risk supervision. IFIC conducts its banking promoting ‘Home Loan’ product.
operations by maintaining compliance according to zz Bank will focus on providing excellent customer
the Risk Management Guidelines of the Bank which service by One Stop Service from its Branches.
covers the risks such as credit risk, foreign exchange zz IFIC Bank will grow with current reputed
risk, internal control and compliance risk, anti money customers and roll out new lines of business.
laundering risk, information & communication zz The Bank will provide special focus on recovery
technology risk, asset liability management risk etc. drive to bring down the NPL ratio.
zz Bank will attain long term sustainable growth
Commitments Towards the Employees
by pursuing the strategy of prudent Liquidity
The Bank is making continuous efforts to ensure Management and Asset Liability Management.
career path of the employee through placement of
Concluding Remarks
right employee at the right position. The Bank is also
I am expressing my sincere gratefulness to the
providing training and workshop to the employees regulatory authorities especially Bangladesh Bank,
at home and abroad to meet skill gap so that they Bangladesh Securities and Exchange Commission,
may become as successful leaders of the Bank. IFIC Dhaka Stock Exchange Limited and Chittagong
organizes various employee engagement programs Stock Exchange Limited for their continuous help
to inspire the employees so that they can engage and support. I would like to convey my earnest
themselves for higher productivity. During the year gratitude and thanks to the members of the Board
2017, the Bank has restructured pay package to of Directors for their policy guidelines and adequate
make it competitive in the industry to motivate its assistance to the Management in implementing
those policy guidelines. Thanks are due to our
employees. Bank has also created performance
respected shareholders, valued customers and all
culture among the employees through implementing other stakeholders for their confidence and belief
KPI (Key Performance Indicator) based Performance in the Management of the Bank. Finally, I wish
Appraisal system. Along with competitive pay and to express gratitude to my colleagues for their
allowances, the Bank also provides Provident Fund, dedication and attempt in making 2017 a successful
Gratuity Fund and Leave Encashment facility to the year for IFIC Bank.
employees. Last but not the least; in the year 2017,
IFIC Bank has enriched hospitalization insurance
and group life insurance facilities significantly for the
employees and their family to ensure hospitalization
and life coverage.
Responsibilities Towards the Society
IFIC Bank performed the following activities in 2017
to address the need of people for making positive M Shah Alam Sarwar
and significant contributions to the society: Managing Director & CEO
zz The Bank has provided blankets to Prime Minister
Relief Fund.
zz The two winners of IFIC Bank Shahitto
Purosker-2015 got their Prizes from the Bank.
zz IFIC Bank has donated to Prime Minister’s
Shikkha Shohayota Trust.
zz The Bank has given donation to Shuchona
Foundation for Autistic Children.
zz IFIC Bank has contributed to Bangabandhu
Sheikh Mujibur Rahman Memorial Trust.
MANAGING DIRECTOR
30 Annual Report 2017 & CEO’S REVIEW
DIRECTORS’
REPORT
DIRECTORS’
31
Directors’ Report
Hon’ble Shareholders, estimate of Bangladesh Bureau of Statistics (BBS),
the GDP growth of FY2016 -17 stood at 7.3%, 0.2%
Assalamu Alaikum. point higher from 7.1% of the previous fiscal year.
The Board of the Directors of IFIC Bank Limited In FY2015-16 per capita GDP was US$ 1,385 which
is delighted to welcome you all to the 41st Annual rose to US$ 1,544 in FY2016 -17. Likewise, per
General Meeting of the Bank. It is a pleasure and capita national income increased to US$ 1,610 in
privilege on the part of the Directors to present the FY2016 -17, US$ 145 higher than a year earlier. Gross
Directors’ Report along with the Audited Financial investment increased to 30.5% of GDP, 0.9% higher
Statements of the Bank for the year ended on 31 than the preceding fiscal year.
December 2017 and the Auditors’ Report thereon
before you. The Board has reviewed the financial In FY2016-17 satisfactory growth has been achieved
statements in order to ensure effective financial in revenue receipts. During this period, attaining
control, transparency and accuracy of the financial 91.9% of the revised target, total revenue receipt in
data and financial reporting. The Board also likes FY2016-17 increased by 16.1% to BDT 2,007,850
to take the opportunity to highlight briefly on the million over the previous year outturn. Total
operational performance of the Bank during the year revenue receipts reached 10.6% of GDP, up by 0.3%
2017 in the context of domestic and international compared to the preceding fiscal year.
economic scenario. In recent years the interest rate of lending and
deposit interest rate of commercial banks are
1. Global Economy gradually declining. The weighted average lending
The global pickup in activity that started in the rate of interest of commercial banks decreased by
second half of 2016 gained further momentum in the 1.3% to 10.4% at the end of June 2016. The market
first half of 2017. Notable rise in investment, trade capitalization and the price of both capital markets
and industrial production coupled with enhanced increased significantly in June 2017 compared to
business and consumer confidence is supporting June 2016.
the recovery of world economy. Based on these In FY2016-17 the country’s total exports amounted
outcomes International Monetary Fund (IMF) has to US$ 34,847 million, which was 1.7% higher than
predicted an increase in the global economic growth. the previous year. During the same period the
In the IMF’s latest World Economic Outlook (WEO), total value of import (c&f) provisionally stood at
October 2017, the Global growth has been projected US$ 47,005 million, up by 9.0% from the previous
at 3.6% for 2017 and 3.7% for 2018, 0.4% and year. Over this period consumer goods imports
0.5% higher compared to the growth of 2016. The increased by 26.9%, intermediate goods by 5.6%
continued boost in domestic demand in the developed and capital machinery by 7.4%. Remittances inflow
economies, favourable financial conditions, strong dipped to US$ 12,770 million in FY2016-17 from
business and consumer confidence are expected the previous year’s inflow of US$ 14,931 million
to play a vital role in achieving such growth targets. with a deceleration rate of 14.5%. Elevated import
Significant improvement in the investment situation, growth and slow export growth mainly caused the
increased investment in China’s infrastructure and tumbling growth in remittances inflow the current
housing sector and revival from the downturn of account encountered a deficit of US$ 1,480 million
commodity prices, even in partial, are expected in FY2016-17 from a surplus of US$ 4,262 million
to induce growth momentum of emerging and in FY2015-16. During the period exchange rate
developing economies. Among the possible risks of Taka against US dollar remained almost stable.
causing substantial uncertainty in global growth, Considering the prospects and potential risks in the
the intrinsic conservation policy of some advanced global and domestic economy the Medium-Term
economies may exert a negative impact on global Macroeconomic Framework (MTMF), 2018 - 2020
trade and cross-border investments. Moreover, an has been formulated.
atmosphere of persistently subdued inflation may
weaken central bank’s capacity to control real interest 3. Banking Sector
rates. Again, continued easy monetary conditions in Banking sector in Bangladesh has played a
advanced economics may make the financial system tremendous role in mobilizing savings and
vulnerable to an abrupt decompression of risk providing funds to various sectors in the economy.
premium. Throughout the journey, the sector has experienced
several challenges similar to those experienced by
2. Bangladesh Economy many developing countries in their early years of
The economy of Bangladesh has been able to development. The Central Bank, with an aim to attain
maintain sustained economic growth even in the greater financial stability, adopted risk based capital
face of global financial crisis. According to the final adequacy framework recommended under BASEL
DIRECTORS’
accord. As a developing country, Bangladesh has 4. IFIC in the Banking Sector of Bangladesh
made commendable progress in terms of achieving
financial inclusion and establishing regulatory International Finance Investment and Commerce
supervision in the banking sector. Bank Limited (IFIC Bank) was set up at the instance of
the Government in 1976 as a joint-venture between
Key milestones in financial inclusion : the Government of Bangladesh and sponsors in the
zz The reach of banking service in Bangladesh has private sector with the objective of working as a
seen satisfactory progress through expansion of finance company within the country and setting up
bank branches. Number of bank branches stood joint-venture banks/financial institutions aboard. In
at 9,720 in June 2017 against 7,961 in December 1983 when the Government allowed banks in the
2011. private sector, IFIC was converted into a full-fledged
zz Agent banking, introduced in 2013, has seen commercial bank. The Government of the People’s
tremendous growth in client acquisition. Through Republic of Bangladesh now holds 32.75% of the
agent banking, fresh deposits worth USD 115 share capital of the Bank and the rest of the share
million and loan disbursement worth USD capital is held by the Sponsors/Directors, local and
10 million were made in rural and previously foreign institutions and general public shareholders.
unbanked areas (Agent Banking Activities, March A total of 141 branches of IFIC are dedicated to fulfill
2017). the Mission of providing services to the clients with
zz Mobile Financial Service (MFS) has posted the help of a skilled and dedicated workforce. As
staggering growth since its introduction in mid- one of the leading banks of the banking sector in
2011. The services offered by MFS companies the country, IFIC is always committed to the welfare
have facilitated faster transaction throughout and economic prosperity of the people and the
the country. community.
zz Shifting trends have been observed in the mode
of transaction. Usage of plastic money has grown 4.1 Client as Trusted & Development Partner
at unprecedented rate facilitated by a tech- IFIC recognizes customers as partners and aims at
savvy urban consumer base and proliferation of providing high quality products and services at a fair
E-commerce. price. The Bank focuses on supplying of Customer
Service Excellence in those products and services
zz 100% of the private commercial banks in
with the optimum desire to gain total customer
Bangladesh have adopted Core Banking Solution
satisfaction and confidence. The Bank hopes to build
(CBS) to offer seamless service to the clients
reliability, trust and friendship through honesty and
from any branch of a certain bank. Bangladesh
integrity for healthy long-term alliances.
Bank (BB), in 2016, took one step further by
introducing a uniform Core Banking Solution, The Bank looks after every client to make him/her
which would offer greater risk monitoring ability a development partner through addressing his/her
to the regulators and stakeholders. banking needs and wants to provide best services at
affordable prices.
3.1 Monetary Policy Stance of Bangladesh Bank
The Bank provides a professional, safe and enjoyable
The monetary policy stances for the first and second
work environment that supports job enthusiasm,
half of FY2016-17 aimed at keeping inflation at a
positive relationship and effective teamwork. The
tolerable level and achieving desired economic
Bank provides clear directions to motivate the team
growth and employment through adequate financing.
to achieve the goals. The Bank seeks to inspire
The monetary policy stances for FY2016-17 were
loyalty to the company by treating all the employees
adopted with a view to achieving a GDP growth rate
with respect, recognition and understanding.
of 7.2% and maintaining an annual average inflation
rate within 5.8%. In this pursuit, broad money and 4.2 Cluster Management
reserve money growth at the end of FY2016-17 were Cluster Management is considered as a new
targeted at 15.5% and 14.0% respectively. During and highly efficient forms of innovation support
the concerned period broad money and reserve provider that provides and channelizes specialized
money grew by 10.9% and 16.3% against the growth and customized business support services to
of 16.4% and 30.1% respectively in the preceding enterprises. Our high quality cluster management
fiscal year. Growth in broad money declined mainly is working relentlessly to ensure cluster excellence
due to the slow growth in Net Foreign Assets (NFA) in the Bank and efficient cluster managers act as a
and substantial decrease in public sector credit. On driving force for the clusters. The performance is
the backdrop of robust import growth, slow export very much linked to the professional expertise and
growth and shrinking remittances inflow the growth the capabilities of them who dispose of good cluster
in NFA decreased to 14.4% from the previous year’s insight, necessary for effctive support to the cluster
growth of 23.2%. members.
DIRECTORS’
33
5. Financial Performance of IFIC Bank As a result mortgage backed home loan mix under
Limited retail segment to total lending portfolio stood at
14.6% compared to 9.2% of last year and overall
The year 2017 proved to be a pivotal year in our retail portfolio mix stood at 20.3% vis-à-vis 16.2%
efforts to optimize our business model for driving of prior year. On the other side corporate lending
future growth. Despite the number of changes, the portfolio mix reduced to 63.7% at the end of year
Bank reported a respectable performance during the 2017 opposed to 66.1% in 2016.
year 2017 in terms of balance sheet and profitability
which is a testimony of its robust business model. 5.2 Asset Quality
It was made possible because of the combination Year 2017 was very challenging to maintain the asset
of various factors such as increasing strong brand quality of the banking sector and banking sector non-
visibility in the market, selling products like IFIC performing loan (NPL) ratio stood 9.3% at the end of
Home Loan and IFIC Aamar Account to the targeted year 2017 vis-à-vis 9.2% of year 2016. In contrast, at
group, improving human resource capacities, the end of year 2017 NPL ratio of the bank stood at
managing prudential credit risks, growing emphasis 6.4% compared to 5.3% of year 2016. The NPL ratio
on technology, focusing on compliance framework increased by 1.1% in 2017 due to downgrade of few
and the teamwork. accounts both on qualitative and objective criteria.
However, the bank made well coverage against
5.1 Financial Position Based on Separate Financial such NPL portfolio to mitigate the credit risk. At
Statements the end of the year 2017, the Bank has maintained
At the end of year 2017 total deposit of the Bank total provision of BDT 5,310 million and kept interest
stood at BDT 200,206 million compared to BDT suspense BDT 4,953 million against total loans and
160,155 million with denoted growth of 25.0% over advances. At the end of year 2017 net NPL ratio of
the previous year. On the other side at the end of the bank stood at 3.4%.
year 2017 CASA deposit mix of the Bank stood at
21.9% vis-à-vis 24.6% of year 2016 which is slightly 5.3 Financial Performance
lower than that of the last year as bank is giving more Due to continuing moderate growth of loan portfolio
emphasis on long term fund rather than short term. and efficient management of products mix, the Bank
However, at the end of year 2017 total CASA deposit posted net interest income of BDT 5,490 million
increased by BDT 4,529 million from year 2016 from BDT 4,375 million of Year 2016 which is 25.5%
which is 11.5% over last year. higher than the prior year. The most positive attribute
BDT in million of IFIC in 2017 is the financial performance denoted
in growth in assets. On the other side, non-interest
Y2017 Y2016
Particulars Change income reached at BDT 4,272 million in 2017 against
Amount Mix Amount Mix BDT 4,111 million in 2016.
CASA 43,885 21.9% 39,356 24.6% 11.5%
BDT in million
FDR and
156,321 78.1% 120,799 75.4% 29.4% Particulars 2017 2016 Change
Others
Total Deposit 200,206 100.0% 160,155 100.0% 25.0% Net Interest income 5,490 4,375 25.5%
Corporate 114,269 63.7% 86,839 66.1% 31.6% Non-Interest income 4,272 4,111 3.9%
SME 28,690 16.0% 28,067 20.5% 2.2%
Total operating income 9,763 8,486 15.0%
Retail 36,306 20.3% 22,212 16.2% 63.5%
Total operating expenses 5,348 5,066 5.6%
Total Loans 179,264 100.0% 137,118 100.0% 30.7%
Profit before provision 4,414 3,420 29.1%
On the other hand the Bank recorded BDT 179,264
Total Provision 2,038 1,336 52.5%
million as loans and advances at the end of year
Y2017 vis-à-vis BDT 137,118 million of the previous Profit before taxes 2,377 2,084 14.1%
year representing 30.7% growth compared to last
Net profit after tax 2,068 1,214 70.3%
year. These growths lead the total assets to increase
to BDT 253,249 million, which is 28.5% higher than In the expense side, the bank incurred total operating
the previous year its BDT 197,051 million. expenses of BDT 5,348 million during 2017 opposed
The Bank is continuously working to mitigate the to BDT 5,066 million of year 2016. During the year
credit risk concentration and focus on increasing 2017 total operating expenses increased by 5.6%
the mortgage backed small ticket home loan under over the corresponding year which is very nominal
retail segment. At the end of year 2017 the Bank and in line with the business growth of the bank.
recorded total home loan at BDT 26,209 million IFIC reported Operating profit/Profit before
compared to BDT 12,565 million at the end of year provision of BDT 4,414 million in 2017 compared to
2016 with posted 108.6% growth over last year. BDT 3,420 million in 2016, which denoted a healthy
DIRECTORS’
growth of 29.1% over the previous year due to declared the record date for entitlement of rights
higher level of net interest income. IFIC continued share on 17 April 2017 and fixed the subscriptions
following its laborious approach in dealing with the period from 31 May 2017 to 29 June 2017. Bank
non-performing and high risk credit portfolio. To credited the Rights share to the shareholders’ BO
make good coverage against its non-performing accounts through CDBL on 19 July 2017. At the end
assets IFIC made a provision for loans & advances of year 2017, total paid up capital of the bank stood
and investment of BDT 2,038 million in 2017 against at BDT 11,953 million after considering the rights
BDT 1,336 million in 2016. Therefore, Profit before issue.
tax stood at BDT 2,377 million in 2017 which is
As per approval of BSEC and implementation
registered a growth of 14.1%, against BDT 2,084
schedule contained in the Rights Share Offer
million in 2016.
Document, the Bank utilized full amount of Rights
During the year the bank made BDT 750 million Share proceeds in following manner:
provision for current tax after considering the prior
BDT in million
years’ excess/surplus provision. On the other hand
bank accounted for BDT 441 million deferred tax Particulars of Capital Utilisation Amount
income in the year 2017 which is mainly arisen due Term Loan 4,000
to higher level of loan loss provision under category
Continuous Loan 1,000
of doubtful and bad & loss. With the positive impact
on deferred tax income total Profit after Tax of the Demand Loan 638
bank stood at BDT 2,068 million in 2017 compared Total 5,638
to BDT 1,214 million in 2016 which demonstrates
70.3% growth in 2017. After issuance of rights share in 2017, Tier-1 Capital
stood 18,875 million vis-à-vis BDT 11,609 million of
5.4 Quarterly Disclosed Financial Performance year 2016 and Tier-2 Capital stood 5,239 million which
with year 2017 Financial Performance includes 07 (seven) years Non-convertible Coupon
The quarterly financial performance of the Bank bearing Sub-ordinated Bond of BDT 3,500 million
namely in terms of interest income, net interest which was issued in Y2016. Capital to Risk-weighted
income, operating income was mostly consistent in Asset Ratio (CRAR) of the Bank stand at 12.57% at
all the 4 quarters. However, operating expenses have the end of year 2017 compared to 11.25% of year
changed slightly and increased in the 4th quarter 2016 against the minimum requirement of 11.25%
mainly for the recognition of non-regular expenses (including Capital Conservation Buffer). As per Basel-
like incentive bonus and charges on loan losses III guidelines, Bank have to raise Capital Conservation
against write offs. Buffer at the rate of 0.625% every year starting
BDT in million from year 2016 up to year 2019 above the regulatory
Particulars Q1 2017 Q2 2017 Q3 2017 Q4 2017 Y2017
minimum capital requirement of 10.0%. Details of
Market Discipline shown in (Basel-III) section.
Net Interest income 1,173 1,433 1,233 1,652 5,490
Non-Interest income 975 1,088 971 1,239 4,272 BDT in million
Total operating income 2,148 2,521 2,204 2,890 9,763 Particulars 2017 2016
Total operating expenses 1,159 1,251 1,215 1,723 5,348 Tier-1 Capital 18,875 11,609
Profit before provision 988 1,270 989 1,167 4,414 Tier-2 Capital 5,239 5,318
Total Provision 528 386 458 666 2,038 Total Regulatory Capital 24,114 16,928
Profit before taxes 461 885 531 501 2,377
Total risk-weighted assets 191,773 150,523
Net profit after tax 248 433 496 890 2,068
Required capital @11.25% [Y2016:
21,574 15,993
10.625%]
5.5 Rights Share Utilization and Capital Adequacy Total capital surplus 2,539 935
Position
To meet the regulatory capital and strengthen the Capital to Risk-weighted Asset Ratio:
capital base of the Bank as per Basel – III, the Board Common Equity Tier-1 to RWA 9.84% 7.71%
of Directors of the Bank recommended rights shares
Tier-2 Capital to RWA 2.73% 3.53%
at the ratio of 1R:1 i.e. a total of 563,821,907 number
of ordinary shares amounting to BDT 5,638 million Capital to Risk-weighted Asset Ratio 12.57% 11.25%
in its 676th meeting held on 20 June 2016 which was
subsequently approved by the Shareholders in its 5.6 Appropriation of Profit and Dividend
39th Annual General Meeting held on 14 July 2016. In the year 2017 Earnings Per Share (EPS) has
After complying the all regulatory compliance, Bank increased to BDT 2.02 compared to BDT 1.38 in
DIRECTORS’
35
last year (Y2016: restated). Considering the overall country, bank pay tax and collects withholding tax
performance of the bank, the Board of Directors has and VAT and deposit the same to the Government
recommended 12% stock dividend for the year 2017 Exchequer in due time.
with a view to rewarding shareholders in the long
run through retaining capital to maintain the capital 8. Related Party Disclosure
adequacy ratio to support future growth.
Disclosure of all related parties, including basis for
BDT in million such transactions, has been provided in Annexure F
Particulars 2017 2016 of Audited Financial Statements.
Opening retained surplus 2,269 2,076
9. Overseas Operations
Less: Stock dividend issued (677) (604)
Since its journey in 1983, IFIC Bank has been playing
Opening retained surplus 1,593 1,472
the pioneering role among the private sector banks
Add: Profit after tax 2,068 1,214 in establishing joint venture/ overseas operations
Sub-total 3,660 2,686 beyond the national boundary. The Bank has so
far been able to set up joint venture operations in
Less: Transfer to statutory reserve (475) (417)
Maldives, Oman, Nepal, Pakistan and UK. Bank’s
Closing retained surplus 3,185 2,269 operation in Maldives was, however, handed over to
Less: Deferred tax asset (1,335) (863) the Maldivian Government in 1993.
Available distributable profit 1,850 1,406 Overseas joint venture operations have not only
brought a positive image for the Bank in the
5.7 Five Years Performance International arena but also contributed to its
The bank has achieved its intended balance sheet profitability. A pen picture of the existing overseas
growth as well as sustainable profit growth over joint venture operations of the Bank is furnished
the last five years. Details of all the key financial hereunder for information of the Honorable
highlights of the bank for the last five years are Shareholders.
shown in page number 89 of the annual report.
9.1 Nepal Bangladesh Bank Limited
Nepal Bangladesh Bank Ltd., a joint venture “A-Class”
6. Credit Rating
commercial bank between IFIC Bank Limited and
IFIC Bank is rated by Credit Rating Agency of Nepali nationals, started operation with effect from
Bangladesh Limited (CRAB). The latest and previous 06 June 1994 in Nepal. The Bank has a network of 54
rating of the Bank is furnished below: (Fifty four) branches at different important locations
in Nepal. IFIC Bank presently holds about 40.91%
Date of Long Short shares in Nepal Bangladesh Bank, Nepal.
Ratings Outlook Validity
Raring Term Term
The profitability of Nepal Bangladesh Bank is in the
Current 30-Jun-17 AA2 ST-2 Stable 30-Jun-18 increasing trend and recently, Nepal Bangladesh
Previous 30-Jun-16 AA2 ST-2 Stable 30-Jun-17 Bank declared 12% Stock Dividend and 3.79% Cash
Dividend during FY 2016-17 to its shareholders.
In long term the CRAB rated the Bank AA2 which
represents very strong capacity to meet the financial 9.2 Oman Exchange LLC
commitments and which is a very small degree Oman Exchange LLC, a joint venture between IFIC
of difference from the highest-rated Commercial Bank Limited and Omani nationals, was established
Banks. AA is judged to be of very high quality and is in 1985 to facilitate remittance by Bangladeshi wage
subject to very low credit risk. earners in Oman. IFIC Bank holds 25% shares, and
In short term the CRAB rated the Bank ST-2 which the balance 75% is held by the Omani sponsors. The
represents strong capacity for timely repayment. exchange company has a network of 14 (fourteen)
Commercial Banks rated in this category are branches covering all the major cities/towns of
characterized with commendable position in terms Oman. The operations of the branches are fully
of liquidity, internal fund generation and access to computerized having online system.
alternative sources of funds.
9.3 MCB Bank Limited, Pakistan
IFIC Bank had two branches in Pakistan, one in
7. Contribution to the National Exchequer
Karachi and the other in Lahore. Karachi Branch was
During the year 2017, the Bank deposited BDT 2,946 opened on 26 April 1987, while Lahore Branch was
million to the Government exchequer out of which opened on 23 December 1993.
BDT 796 million as income tax, BDT 1,593 million of
To meet the Minimum Capital Requirement (MCR) of
withholding tax, BDT 364 million of VAT and BDT 192
the State Bank of Pakistan, the Overseas Branches
million of Excise Duty. According to the law of the
in Pakistan have been amalgamated with a reputed
DIRECTORS’
leasing company in Pakistan named National zz Placid NK Corporation, USA -global company
Development Leasing Corporation Ltd. Therefore, zz Multinet Trust Exchange LLC, UAE
the existence of Bank’s above Overseas Branches zz Al Fardan Exchange, UAE
has been ceased w.e.f. 2 October 2003 and a new
zz Sigue Global Services Ltd. (SMT) – global company
joint venture bank titled NDLC-IFIC Bank Ltd.
emerged in Pakistan w.e.f. 3 October 2003. The Bank zz Xpress Money Services Ltd., UK
was subsequently renamed as NIB Bank Limited. zz Trans-Fast Remittance LLC, USA
NIB Bank Limited has been again merged with and
into MCB Bank Limited w. e. f. 7 July 2017. After 10. Products and Services
merger with and into MCB Limited, IFIC Bank IFIC Bank has focused on technology-based modern
Limited hold 175,508 numbers of shares of MCB banking facility including Real-time Online Banking,
Bank Limited. ATM, SMS Banking, Point of Sale (POS), Credit Card,
Debit Card and Prepaid Card in addition to traditional
9.4 IFIC Money Transfer (UK) Limited products/services.
IFIC Money Transfer (UK) Limited, a fully owned
subsidiary exchange company of IFIC Bank Limited 10.1 Corporate Banking
was incorporated in UK and commenced its IFIC Bank offers comprehensive Corporate Banking
operation on 31 August 2011 to facilitate inward solution through sophisticatedly designed products
foreign remittance from the United Kingdom. and services including flexible & structured financial,
advisory & operational support to meet the diverse
9.5 Correspondent Banking Relationship financial needs of growing corporate sector of the
IFIC Bank Ltd. has a wide range of correspondent country. Our prime focus is to build and maintain
network across the world to facilitate smooth long-term mutually beneficial relationship with the
foreign trade transactions. The Bank maintains 26 corporate clients, and being a part of their journey
Standard Settlement Instructions (Nostro Account) towards development and growth. With expertise,
involving 7 currencies e.g. AUD, ACU-D, CHF, EUR, innovation and dedication, our skilled Relationship
GBP, JPY and USD at important financial centers. Managers, in addition to traditional industries,
Total correspondents of IFIC Bank Ltd. stands at 475 are providing financial facilities to RMG, Textiles,
(Local & abroad) as of 31 December 2017. Power, Telecommunications, Packaging, Edible Oil
Refinery, Healthcare, Renewable Energy, Hotel &
9.6 Foreign Remittance Tourism, Construction, Pharmaceuticals, Steel, Ship
IFIC Bank handles both inward and outward foreign Building, Trade & Commerce, Agri-Business (Poultry,
remittance products. The outward remittance Food Processing) sector etc. IFIC Bank offers
includes FC Cash/FDD and Wire transfer by SWIFT. various funded and non-funded facilities to assist
The Bank’s inward remittance covers account credit manufacturers, traders and service industries which
service and instant cash payout service under include but not limited to the followings:
Electronic Fund Transfer (EFT) arrangement. The zz Working Capital Finance
inward foreign remittance business was amounted zz Industrial & Project Finance
to BDT 17,072 million (equivalent USD 213.4 million)
zz Trade Finance
in 2017.
zz Lease Finance
To facilitate inward foreign remittance in Bangladesh
zz Syndication & Structured Finance
from the United Kingdom, a fully owned subsidiary
exchange company of IFIC Bank Limited titled zz Treasury & Off-shore Banking
IFIC Money Transfer (UK) Ltd. commenced its zz Letter of Credit and Bank Guarantee services
operation in August 2011 in London, UK. Moreover,
IFIC Bank has ensured greater access to the un- 10.1.1 Working Capital Finance
banked population of different remote areas with Businesses concerns, manufacturing or trading,
the strategic alliances for distribution of remittance frequently face shortage of cash flow due to
with UDDIPAN where we do not have any presence. upgradation, Balancing Modernization Rehabilition
At present 101 Branches of UDDIPAN are performing and Expansion (BMRE) of existing set up or to procure
the remittance distribution agents of our Bank raw materials and to meet day to day expenses.
throughout the country. Funded facilities are Secured Over Draft (SOD)/
IFIC Bank has remittance arrangement with the Over draft (OD), Overdraft (Garments), Cash Credit
following 8 (Eight) Exchange Companies to cater the (CC), Loan against Trust Receipts (LTR), Work order
inward foreign remittances from abroad including Financing, Short-Term loan, Demand Loan/Time
Bank’s own and its joint venture exchange company: Loan, Loan General.
zz Oman Exchange LLC, Oman Non-funded facilities are bank guarantees and
zz IFIC Money Transfer (UK) Limited, UK
Letter of Credits as best suited to client’s liquidity
requirement and risk profile.
DIRECTORS’
37
10.1.2 Industrial & Project Finance Bangladesh Bank will provide long term financing in
IFIC Bank provides project finance for various foreign currency mainly for small and medium scale
industrial projects in the form of Term Loans for civil manufacturing enterprise with a view to increased
construction, procurement of machinery, and BMRE. output in the country.
Lease Finance is offered for procurement of vehicle
and LC for import of machinery. 10.1.4 Off-shore Banking Unit (OBU)
IFIC Bank has OBU to cater to the banking needs of
10.1.3 Trade Finance the customers to increase foreign trade business in
IFIC Bank has long history in financing and foreign currency in line with BB guidelines –
facilitating trade finance. The bank has experienced zz Add Confirmation to L/Cs: To Deferred Credits
professionals to support customers in dealing with issued by other Banks or Branches of IFIC Bank
trade related services. The bank is centralizing its for smooth execution of L/C terms.
trade services to offer faster services to the clients.
zz Bill Discounting (Import Bills): To secure clients’
a. Import business growth and improve their negotiating
The bank support import functions through the base with suppliers.
following: zz Discounting of Export Bill: An exporter derives
zz Letter of Credit- – Sight/Usance benefit from interest rate differential when
discounting export bills by OBU.
zz Standby Letter of Credit
zz Foreign Currency Time Loan/Term Loan: Foreign
zz Payment Against Documents (PAD)
currency loans are available to both resident (with
zz Loan against Imported Merchandize (LIM)
BIDA permission) and foreign owned companies
zz Loan against Trust Receipt (LTR) under a set of agreed terms and conditions.
zz Shipping Guarantee zz Buyer’s Credit
b. Export zz UPAS L/C payment
To support the export functions, the Bank has the
following in place. 10.2 SME Performance
IFIC Bank now serves SME customers through its’
1) Pre-shipment finance 141 branches all over Bangladesh.
zz Back to Back Letter of Credit issued against
the export (master) credit to facilitate export SME Portfolio
oriented RMGs At the end of 2017, IFIC Bank’s total SME portfolio
zz Export LC (Advising & Transfer) was BDT 28,690 million of which Cottage, Micro &
zz EDF Loan, ECC, Over Daft (Garments), Packing
Small Enterprise financing was BDT 16,315 million
Credit i.e. 57% of total SME. The financing in Medium
Enterprise was BDT 12,375 million i.e. 43% of total
2) Post-shipment Finance SME.
zz Export Bill Purchase
zz Export Bills Collection
zz Inland Documentary Bill Purchase/Foreign
Documentary Bill Purchase
zz Others 43%
c. Fire Fighting & Safety Equipment Loan

To purchase & installation of Fire Fighting/Safety 57%
Equipments/water reservoir for safety and fire
prevention in export oriented RMGs at reduced rate
of interest.
d. Green Factory Building Loan Cottage, Micro & Small Medium

Under BB’s Refinancing Scheme: Renewable energy
and environment friendly sector at reduced rate of
interest. Pie Diagram: % Cottage, Micro, Small & Medium
Enterprise financing
e. Long Term Financing Facility
Under Financial Sector Support Project [FSSP]:
DIRECTORS’
Key loan products of SME
Sector wise Agricultural loans as on 31.12.2017
SL Product Name Remarks 10%
2%
Loan for Agro. Based
01 IFIC-Krishi Shilpo
Industry
Loan for Cottage & Micro
02 IFIC-Shilpo Sohay 49% 39%
Industry
IFIC-Shilpo Loan for Manufacturing &
03
Shongjog Service Industry
Loan for Women Crops-BDT 157 M Livestock-BDT 626 M
04 IFIC-Protyasha Fisheries-BDT 40 M Others-BDT 776 M
Entrepreneurs
Loan for Grassroots
05 IFIC-Prantonari
Women Entrepreneurs 10.2.4 Bangladesh Bank Directed Loans
10.2.1 Financing & Training of Women
Entrepreneurs (WE) Proportionate
Target for FY
SL Sector achievement
IFIC Bank supports women entrepreneurs through 2017-2018
till 31.12.2017
providing loans and organizing training/workshop for
their capacity building. The bank provided 352 loans High Value
BDT 1.5 million
to WEs amounting BDT 771 million in 2017. 01 crops @ 4.00% BDT 6 million
(50%)
interest
To promote business know how among WEs, IFIC
sponsored two-day long skill development training for Milk
jute handicraft producers held on 2 & 3 February 2017 Production BDT 80 BDT 81 million
02
in corporation with Association of Grassroots Women & Artificial million (101%)
Entrepreneurs Bangladesh (AGWEB) at Barisal. Insemination
10.2.2 Financial Inclusion Activities 10.3 Retail Banking

In accordance with Bangladesh Bank’s financial The preferences of Bangladeshi consumers are
inclusion agenda, IFIC Bank is engaged in 10 Taka evolving rapidly with the increasing penetration of
account program to serve small/marginal/low income technology in the area of banking. New products,
professionals/traders etc. The bank disbursed BDT
new channels and new service experiences are
6.86 million to 10 Taka Account holders in 2017.
shaping the banking landscape of the future. IFIC
IFIC Bank has also been engaged in school banking Bank has addressed the area of understanding
program since 20 February 2014. Cumulative customer needs and focused on designing solutions
number & volume of school banking accounts are in line with its philosophy of serving the customer as
14,409 and BDT 1.6 million respectively. a one-stop financial service provider.
A school banking conference was organized on The Bank continues its endeavor in the area
14 October 2017 at Bhola as part of the financial of technology to provide a superior customer
inclusion activities of IFIC Bank. experience. The Bank is in the process of upgrading
its internet banking platform to enable a superior
10.2.3 Agriculture Credit online experience.
Key loan products Over the last few years, there has been a major
change in the mindset of our consumers. Retail
SL
Name Remarks Credit, which was considered as unreachable, is
No.
today a means of fulfilling the growing aspirations
IFIC-Suborno Loan for crops, fisheries & of Bangladeshi middle class, especially the growing
01
Gram livestock population of the 25-44 age groups. The decline
Loan for irrigation in corporate credit forced banks to increase their
02 Sech Soronjam presence in the retail finance market. The rise in
equipment
income levels, together with fall in interest rates and
Loan for cultivation growing competition, has increased the affordability
03 Krishi Soronjam
instrument of loans for borrowers.
At the end of 2017, IFIC Bank’s total Agricultural
credit was BDT 3,371 million.
DIRECTORS’
39
Moreover, retail Banking now- at a very rapid pace zz Updated all ATM and Branch location information
– become the major revenue line for most of the into Bangladesh Bank Mobile Apps Software
top banks in the country. For this Retail Banking zz Introduction of EMV ATM Acquiring into all ATMs
Division has re-launched its HBL product “Thikana” – it enables acceptance of EMV Chip Cards into
in the name of “IFIC Home Loan” for any credit all IFIC ATMs which prevents fraud
worthy individuals who wish to buy Apartment/flat,
construct building for home use or renovation of Vision for 2018
their existing flat/house etc. With that amendment zz Install ATM Inside Dhaka – 20 Nos.
Home loan becomes the most vital lending products zz Install ATM Outside Dhaka – 30 Nos.
in IFIC. With continuous effort and dedication from
zz Introduction of new services through ATM
all stakeholders, IFIC now stands market leader
among banks in terms of incremental growth of its zz Implementation of Centralized CCTV Monitoring
number of customer and volume. As of 31 December System
2017, total home loan outstanding is BDT 26,209 zz Implementation of Real-time Network Monitoring
million with a total of 6,165 customers. System
zz Introduction of Cash Recycler ATM
To facilitate one stop banking solution through
reducing cost and hassle of maintaining multiple zz Introduction of First Track ATM Booth Service
accounts for deposit and loan, IFIC Bank introduced
At a glance IFIC ATM Services
first ever hybrid account in entire banking history
of Bangladesh in the name of “Aamar Account”.
Customers are getting interest from deposit balance Yearly ATM Expansion
on daily basis and can enjoy loan facility whenever
needed with 50% reduced rate than credit card. One 50
card of this account will act as debit card and credit 43
card. Through this account IFIC Bank, for the first 40
time, introduced 1 hour loan processing only for the
Govt. employees in Bangladesh. 30
Focus in 2018 20
17
zz Continue the effort for diversifying retail loan
10 9
portfolio through enhancing home & mortgage
5 4
based loan;
0 0 0
zz Continue effort for Aamar Account business to
2011 2012 2013 2014 2015 2016 2017
diversify retail deposit and loan portfolio;
zz Launching innovative technology based products
to tap into the growing opportunities in the thrust ATM Distribution
sectors; Barisal 2
zz Ensuring best consumer banking experience Khulna 7
through improving service quality. Rajshahi 5
10.4. Alternative Delivery Operation Sylhet 5
10.4.1 ATM Services Chittagong 3

IFIC Bank has introduced ATM Services from 2011
and till end of 2017 IFIC Bank has installed 76 ATM
Dhaka 56
Booths with 88 ATMs all over the country. The Bank
has special arrangement with corporate houses
where ATM has been installed to facilitate their
Dhaka Sylhet Khulna
employee’s monthly salaries and other needs. The Chittagong Rajshahi Barisal
Bank accepts cards from three networks namely
Visa (Local and Foreign), Q-Cash Member Banks and
NPSB Member Banks. 10.4.2 POS Services
IFIC Bank has been in Merchant Acquiring business
Initiatives in 2017
since 2008. Till end of 2017 the total numbers of POS
zz
Installation of Anti-Skimming Devises into all installed wase 185 of which 95 merchant POS and
ATM to prevent Card Skimming and Fraud 90 Branch POS. IFIC Cardholders can withdraw from
zz Expansion of countrywide 17 new ATM Booths any branch of the Bank through Branch POS which is
DIRECTORS’
very secured since it is mandatory to input PIN during IFIC Bank has been issuing Aamar Account Dual
Transactions. Presently the Bank is providing VISA currency card and it is a unique transactional account
branded European Master Visa (EMV) Chip cards as where both deposit and overdraft facility is enabled
International Credit Card to its Customers in addition in a single account. IFIC Bank has introduced this
to Magnetic Stripe Debit and Credit Cards. type of account for the first time in Bangladesh
which will ultimately reduce the account operation
Now, the Bank wants to introduce PIN acceptance at
cost of the customer with numerous benefits in a
POS Terminals for ensuring the security standards
single account.
for customers complying with Bangladesh Bank and
Visa. IFIC Bank VISA EMV chip based credit card has been
introduced in January 2017 and this card is more
Bank accepts cards from three networks namely,
secured than magnetic strip card.
Visa (Local and Foreign), Q-Cash Member Banks and
NPSB Member Banks into IFIC Merchant POS. Moreover, the Bank is planning to introduce the
following products and services in 2018
Merchant POS Deployment at a Glance: zz Introduce EMV chip based Debit card,
zz Introduce Aamar Account dual currency chip
Sl. District No. of POS Installed
based card,
1 Dhaka 77 zz Own card management switch (presently we are
2 Chittagong 01 using share switch/network from ITCL)
zz Procurement of EMV card personalization
3 Sylhet 01
machine
4 Bogra 03 zz Introduce contactless card
5 Faridpur 02 zz Introduce contactless POS
6 Cox’s Bazar 02
Dispute & Fraud Management
7 Srimongol 09 In 2017 the Bank has taken different initiatives to
minimize fraud risks and disputes efficiently. As per
Total 95
Bangladesh Bank compliance and to minimize fraud
risks and avoid Visa Liability following Projects have
POS Vision for 2018 been implemented:
zz Accept Visa Contactless transaction in all zz Verified by Visa (VbV) –safeguard customers on
Merchant POS Terminals e-com txn by providing OTP during txn
zz Roll Out Branch POS in all IFIC Branches zz Visa EMV ATM Acquiring – prevent fraud and
zz Expand Merchant POS Network avoid visa liability shifting
zz Visa EMV POS Acquiring – prevent fraud and
10.4.3 Card Services
avoid visa liability shifting.
IFIC Card is powered by VISA, world’s largest
electronic payments network. IFIC Bank has been zz Visa PIN@POS – prevent fraud and force
issuing VISA branded Credit Card, Debit Card & customers to input PIN during POS Txn.
Prepaid Card and which can be used both at home & zz Visa EMV Chip based Credit Card – prevent fraud
abroad. Customer can choose any of the above cards and prevent card cloning.
according to his/her need. Local cards can be used zz Security measures for mitigations Fraud Risk for
at any ATM displaying VISA Logo for withdrawal Card transactions.
of cash and at any POS displaying VISA Logo for
purchase of goods & services within Bangladesh. Dispute Resolution (Local Currency)
International cards can be used globally through BDT in million
worldwide VISA network. ATM and POS transactions
Sl. Number Charged Back
are to be secured by Personal Identification Number Network
No of Dispute amount
(PIN) known by the concerned customer only.
However, all the transactions are to be authorized by 1 NPSB (ROU) 537 5.59
the system electronically. The Bank has issued more
than 5,000 credit cards and 161,000 debit cards up 2 NPSB (Off Us) 82 3.96
to 31 December 2017.
3 Q-Cash (ROU) 405 0.97
The Bank has been issuing VISA branded debit cards
including credit gold and classic cards for both local 4 Q-Cash (Off Us) 91 0.30
and international use since June 2007.
5 Visa (ROU) 3 0.02
DIRECTORS’
41
Dispute Resolution (Foreign Currency) zz (A) Inbound Team (B) Outbound Team (C) MIS
Team (D) Scheduling Team (E) Service Quality
Figure in USD
Team (F) ATM Service and Suspicious Transaction
Sl. Number of Charged Back Monitoring Team
Network
No Dispute amount
zz A new industry standard report has been
1 Visa (ROU) 03 240 introduced from where at a glance it will be easy
to know Daily Contact Center performance and
Fraud Resolution (Foreign Currency) Daily Transaction (Successful, Unsuccessful
(Unsuccessful due to System end, Unsuccessful
Figure in USD
due to customer end, Unsuccessful at EOD time)
SL Number of Resolved zz We have implemented a new process from where
No Network Fraud amount
we can differentiate between the Customers who
1 VISA (ROU) 02 12,675 are calling to the contact center, IFIC customers
and non-IFIC customers (From where we can get
Dispute & Fraud Management Vision for 2018 an idea what non IFIC customer demand)
To minimize Fraud, the Bank has taken initiative to
implement following Projects: Call Volume
zz Introduction of Online Fraud Management
Analyzer and Prevention Software. Year Total No. of Calls Growth
zz PCI & DSS Security. 2017 2,45,004 32%
zz Round the clock suspicious monitoring team. 2016 1, 86,060 22 %
10.4.4 Contact Center Service 2015 1, 52,293
IFIC Bank, aiming to provide excellent service to the
customer, has been operating 24/7 servicing hours
since 2012. By simply dialing 16255 or 09666716255 Performance Level
customers can avail banking service anytime from
Year Service Level
anywhere. The Contact Center has now become an
essential part of the Bank to maximize customer 2017 94.9*
satisfaction through highest service level in a timely
and cost-efficient manne. *It means 94.9% of Calls were received by Contact Center within
20 seconds
The IFIC Bank Contact Center team is dedicated
to provide several services that facilitate all other Vision for 2018
departments of bank running their campaigns. The With the success of Contact Center and the
major services are as follows: objective to broaden the service spectrum, the Bank
should now leap forward and provide the full range
Presently Contact Center Services are Delivered
of Contact Center services of global standards to the
to Customers in the following ways
valued Customers by the following ways
zz Inbound Call Service through interaction with
agents. The Bank is going to incorporate robust software
with state-of-the-Art technology:
zz Outbound Call Services of Contact Center.
zz E-Mail Correspondence Service. zz Automated self IVR service for customer
zz In-built call recording system for future reference. zz Screen pop up with customer identification
zz Real time display of service level
New Systems and Processes Incorporated in
Contact Center zz Predictive auto outbound dialer
zz Service level in the system (20 Second Threshold) zz Priority customer identification
zz Card Activation zz Incorporate IVR (Automated Voice Response
services with TPIN) from where customer will be
zz Dash Board from where we can see live (Agents
able to get his desired banking service without
Log in, Customers in Queue, How many Agents in
talking to an agent.
Break, Agents total call )
zz From newly implemented dash board it is easy to
11. Risk Management
generate services from the system like time-wise
total calls, abandoned calls, calls received and Risk Management plays a vital role for maintaining
abandoned etc. Even last 2 years data is available sustainable business growth in the banking
industries. Risk management makes available
zz For making IFIC contact center an Industry Standard,
support to trim down potential risks that could
following functional teams have been formed
DIRECTORS’
arise from unexpected outcome of any event. The zz Approval procedure of credit extension beyond
most important objective of Risk Management is to prescribed limits and other exceptions to the CP;
aptly balance the trade-off between risk and return.
zz Risk identification, measurement, monitoring
IFIC faces different types of risks in its day to day
and control and acceptance criteria;
business operations, and as well as it handles risks
judiciously to ensure optimum return on its business zz Credit approval authority at various levels
operation. including authority for approving exceptions
and responsibilities of staff involved in credit
The main concern of the bank is to manage core risks
operations;
and other material risks prudently and efficiently
to ensure management of balance sheet, adequate zz Roles and responsibilities of staff involved in
liquidity, profitability, capital adequacy in a reasonable origination and management of credit;
manner. Therefore we identify, measure and analyze zz Credit Risk mitigation strategies includes risk
the risks properly in order to ensure sustainable mitigation, acceptable collateral securities
growth in the banking business comparing to and its valuation, insurance coverage, terms
challenging financial and economic environment. A and conditions in the sanction advice, general
structured risk management framework is needed covenants;
for a bank to address properly so that the risks
zz Managing credit risk in the administration
associated in different areas can be minimized. Risk
process;
is inherent with the Banking business and IFIC Bank
is continuously trying to maximize shareholders’ zz Management Information System for managing
value by achieving an appropriate trade-off between Credit Risk;
risk and returns. zz Concentration limits on single party or group
Senior management also involved in all sorts of risk of connected parties, particular industries or
management initiatives and act as a driving force economic sectors, geographic regions and
to minimize the risks inherent with the banking specific products;
business. zz Risk based pricing;
The Risk Management Committee at the Board level zz Policies for the frequency and thoroughness of
is accountable for the overall risk supervision. This collateral verification and valuation;
includes reviewing and approving risk management zz Review and approval authority of allowances for
policies, risk appetite, risk exposures and limits probable losses and write-offs;
ensuring the necessary infrastructure and resources
zz Guidelines on regular monitoring and reporting
in place.
systems, including borrower follow-up and
11.1 Credit Risk Management mechanisms to ensure that loan proceeds are
IFIC Bank Limited, being one of the leading first used for the stated purpose;
generation banks has a number of policies for zz Guidelines on management of problem loans;
sustainable business growth and robust risk
zz Policies on loan rescheduling and restructuring;
management. Credit Risk Management is the most
significant one among five core risks of the Bank. zz The process to ensure appropriate reporting and
Credit Risks Management requires robust policies, tolerance level of exceptions.
rigorous compliance and timely revision. The Credit The Bank rigorously monitors sanctions of loans
Risk Management Policy of the Bank was lastly as well as their recovery. Big loans and loans
revised in 2017. In line with the new policy guidelines sanctioned at branch levels according to delegation
of Bangladesh Bank and implementation of Basel- are supervised by higher levels of the bank regularly.
III, and the changed environment of money market, Loan rescheduling and restructuring are also
credit culture, risk diversity and dimension, the Bank monitored in a very stringent manner. More emphasis
is preparing its “CRM Policy” for more stringent is given on sanctioning secured loans. The bank’s
Credit Risks Management. The Bank’s credit policy policy of minimizing risk through diversification is
addresses the following: working more effectively.
zz Definition of Credit Risk, types of loan facilities,
facilities offered to corporate clients, discouraged 11.2 Remedial Asset Management
business types/sectors; Non-Performing Loans (NPL) seriously affect
profitability of the Bank. Some borrowers do not
zz Managing Credit Risk in the origination process; follow discipline of payment of their loans and
zz Detailed and formalized credit evaluation/ default. Some fail due to numerous reasons beyond
appraisal and approval process; their control. Bank’s growth is retarded if loans are
classified resulting not only suspension of interest
zz Credit origination, administration and income of those loans but forces to arrange loan loss
documentation procedures; provision from the income of the Bank.
DIRECTORS’
43
Remedial Asset Management (RAM) has taken all out assets or liabilities in foreign currencies and its
efforts to arrest the upward trend of NPL and to keep impacts on the earnings and capital of bank due
the percentage of classified loans at an acceptable to fluctuations in the exchange rates. No one can
level i.e. improvement of asset quality. In this regard, predict what the exchange rate will be in the next
Remedial Asset Management Division, Credit Risk period, it can move either in upward or downward
Management and Law & Legal Affairs Division of direction regardless the estimates and predictions.
Head Office are working jointly and putting their This uncertain movement poses a threat to the
concerted efforts to ensure substantial recovery of earnings and capital of the bank, if such a movement
non-performing loans and avoid new classification. is in undesired and unanticipated direction.
RAM has a Recovery Policy which was lastly Commercial banks, actively dealing in foreign
amended by the Board of Directors in its 570th currencies, are continuously exposed to Foreign
emergency meeting held on 17 November 2011 for Exchange Risk. Foreign Exchange Risk of a commercial
strengthening recovery of Non-Performing Loans. bank comes from its trade and non-trade services.
On the basis of above recovery policy and related Foreign Exchange Trading Activities include the
circulars of Bangladesh Bank, RAM has taken purchase and sale of foreign currencies:
following steps for improvement of quality of Assets zz To allow customers to partake in and complete
and profitability of the Bank: international commercial trade transactions;
zz Close monitoring using Log Book for recovery zz To allow customers (or the financial institution
of stuck-up loans as per Standard Operating itself) to take positions in foreign investments;
Procedure (SOP). zz For hedging purposes to offset customers or its
zz Teleconference between RAM & Branch and exposure in any given currency;
meeting among RAM, Branch & Clients for zz For speculative purposes base on forecasting
negotiation toward recovery. or expecting future movements in Foreign
zz Amicable settlement. Exchange rates;
zz Rescheduling of NPLs.
There is a real time fluctuation in floating exchange
zz Waiver of Interest. rate. Whenever a commercial bank deals in foreign
zz Writing-off Classified Loans. currency, it is exposed to risk of exchange rate.
zz Foreclosure of Security. When these transactions are done on the behalf of
zz Engagement/Entrustment of Recovery Agent
customers, the risk is also transferred to them.
zz Preparing a Diagnostics Tool for identification of Foreign Exchange risk management is one of the
root cause of being classification so that further important responsibilities of Treasury Division of
classification can be retarded. the Bank. The function of Treasury Front Office,
Mid Office and Back Office are segregated. Mid
RAM Division also performs Loan Classification Office and Back Office are conducting operations
and Provisioning exercise on quarterly basis as per from a separate location apart from Treasury
Bangladesh Bank circular. Front Office. Treasury Front Office manages and
Comparative position of Recovery and Income from controls day-to-day trading and fund management
Recovery against Non-Performing Loans (NPL) in activities and ensures continuous monitoring of the
the year 2016 and 2017 were as under: level of assumed risk and take necessary actions.
Treasury Mid Office verifies deal and monitors limit.
BDT in million
Back Office is responsible for deal confirmation,
Particulars 2017 2016 Changes settlement of transaction, transfer of fund to
Recovered by: NOSTRO accounts, timely recording and reporting
a) Cash 1,463 1,337 126 etc. Reporting lines of the three offices are separate
and independent to ensure minimization of risk.
b) Re-schedulement &
2,160 4,731 (2,571)
Declassification As per directives of the central bank, the Bank has
c) Waiver of Interest 35 32 3 formulated a well-defined Treasury Manual with a
view to minimize the foreign exchange risk. Bank
Total 3,658 6,100 (2,442)
also developed different strategies to control
Total Loans 179,264 137,118 42,146 foreign exchange risk in the light of net open position
Total Non-performing Loans 11,478 7,251 4,227 set by central bank, overall gross limit for forward
NPL Ratio 6.4% 5.3% 1.1% transaction, maximum loss limits per deal and per
day, counter party limit etc. Market scenario of risk
Recovery 240 591 (350)
is monitored and measured by Treasury Division to
manage the foreign exchange operations in such
11.3 Foreign Exchange Risk Management a way that earnings are not hampered against any
Foreign Exchange risk arises when a bank holds adverse movement of market price.
DIRECTORS’
11.4 Asset Liability Management zz To Provide inputs regarding market views and
Managing Assets and Liabilities regarding Liquidity to suggest proper balance sheet movement
and Market risk is an essential process for banks (expand or shrink) to cope with the changing
and when not well managed, it creates a threat to situation in the market or in the economy;
the existence of the bank itself. To mitigate various zz To keep records of ALCO meetings, to monitor
risks in this regard Banks have its own ALM policy the implementation status of the action taken in
approved by the BODs. Under the bank’s ALM policy,
ALCO meetings etc;
the management and the BODs take necessary
steps as guided by Bangladesh Bank. 11.5 Internal Control and Compliance
Asset Liability Management is a process which is The emphasis on ICC is a recent phenomenon in the
managed by the Asset and Liability Management banking industry in Bangladesh, despite the fact that
Committee (ALCO), comprising of the senior core banking activities moved well ahead much
management of the bank, is primarily responsible for earlier. This is apparent from the banking industry’s
managing assets and liabilities under the set ALM support in the industrial growth in this country.
policy. The major responsibilities of ALCO are as follows: Banking is a diverse and complex financial activity,
zz Ensure that bank’s measurement and reporting dealing primarily with public funds. As this could
system accurately convey the degrees of liquidity turn into a high risk activity, the issues of effective
and market risk; control systems become significant in order to
encourage sound risk management practices and
zz Monitor the structure and composition of
ensure sustainable, smooth performance and growth.
bank’s assets and liabilities and identify balance
Developing a system of effective internal control and
sheet management issues that are leading to
laying a foundation for the safe and sound operation of
underperformance;
banking organizations has become critical for banks.
zz Decide on the major aspects of balance sheet
Internal controls are put in place to keep the
structure, such as maturity and currency mix of bank on course toward profitability goals,
assets and liabilities, mix of wholesale versus achievement of its mission, minimize loopholes,
retail funding, deposit mix , etc.; risk exposures and eliminate or reduce the
zz Decide on how to respond to significant, actual risky element to achieve desired objectives.
and expected increases and decreases in The responsibility of implementing internal controls
required funding; starts with business, which are the “first lines, of
zz Review maturity profile and mix of assets and
defense” against breaches that could cause the
bank not to fulfill its objectives, not to report properly
liabilities;
or not to comply with laws and regulations. Beyond
zz Articulate interest rate views of the bank and that, the three important “control tools” are risk
decide on balance sheet strategy; management, compliance and internal audit. These
zz Approve and periodically review the transfer key functions implement and reinforce the structure
pricing policy of the bank; of internal controls. The first two of these control
tools constitute the “second lines of defense”
zz Evaluate market risk involved in launching of new against mishaps. The final, or “third line of defense”
products; is the internal audit function.
zz Review deposit-pricing strategy, and The process of Internal Control is established by
zz Review contingency funding plan for the bank. the Board of Directors of the Bank through Senior
Management whereby every individual is responsible
The prime responsibility of Asset and Liability
for achievement of specific objectives to ensure
Management (ALM) is on “Treasury Department”,
efficient operations and comply with applicable
specifically its ALM desk. The ALM desk is
laws, rules, regulations and internal policies. The
responsible for day to day management of the
Internal Control System of the Bank ensures that
market risk and liquidity risk of the bank. The broad
all the necessary policies, guidelines and manuals
responsibilities of the ALM desk are as follows:
are in place and followed meticulously, including the
zz To oversee the growth and sustainability of Departmental Control Function Check List (DCFCL).
assets and liabilities;
It is the framework with oversight of the Board of
zz To manage and oversee the overall activities of Directors and Senior Executives of the Bank under
Money Market; which an effective and sound internal control over
zz To manage liquidity and market risk of the bank; the whole range of banking operations is developed,
implemented and monitored. It consists of mechanism
zz To understand the market dynamics i.e. and arrangements that undertake the following:
competition, potential target markets etc. for
zz Builds up processes and systems of financial/
expansion of the business;
non-financial standards for internal and external
DIRECTORS’
45
risks and mitigation to which the Bank is exposed; status report to the Competent Authorities in regard
zz Develops appropriate and effective internal to the followings as per regulatory frameworks:
control systems and implements these to zz Information of Bank Accounts as and when
soundly and prudently manage risks; required by BFIU;
zz Put in place reliable and comprehensive systems zz Cash Transaction Report (CTR);
to appropriately monitor the effectiveness of zz Transaction Monitoring Report;
these controls; zz Structuring Monitoring Report;
zz Establishes effective management information zz Monthly Meeting details;
system and independent audit mechanism. zz Hundi activities and Abnormal Transaction on Bi-
In addition to the above key internal control monthly basis;
procedures includes the followings: zz Suspicious Transaction Report (STR) on Quarterly
zz Ensuring that control policies and procedures basis, periodical report on AML/CFT issues to the
are being complied with throughout on site Managing Detector;
as well as offsite supervision of Departmental zz Half Yearly Report on Self-Assessment of
Control Function Check List (DCFCL), Quarterly branches and Independent Testing Procedure
Operational Report (QOR), Loan Documents conducted by ICC Division and similar other
Check List(LDCL); types to the Board of Directors.
zz Updating the existing DCFCL and develop new
As needed by Bangladesh Financial Intelligence
ones for the Divisions/Departments involving
Unit (BFIU), the Bank has implemented goAML
financial transitions;
Software provided by United Nations Office on
zz Reporting material observations to senior Drugs and Crime (UNDOC) and submits CTR, STR
management and Audit Committee of the Board and other necessary statements related to AML/
immediately with specific recommendations; CFT issues. In addition, the Bank has introduced a
zz Branches are now rated on grade point scale separate Customer Acceptance Policy in the Year,
which is determined on the basis of % of 2013 according to direction of Bangladesh Financial
achieved score categorized as Poor, Marginal, Intelligence Unit (BFIU). In the year 2017, the Bank
Fair, Satisfactory, Good in line with Bangladesh has submitted report of 08 (eight) Suspicious
Bank Risk Based Audit guideline; Transactions Report (STR) to BFIU.
zz A prudent system has been developed for With a view to build awareness on AML/CFT laws,
rectification, counseling of the branches/ guidelines and Circulars issued from BFIU, the Bank
divisions to minimize operational risk; regularly arranges Regional & In-house Training on
zz Pre-audit assessment tools have been developed Prevention of Money Laundering and Combating
to identify the high risk areas. Financing of Terrorism for all level of Executives/
Officers working in different branches of the Bank.
11.6 Prevention of Money Laundering
Prevention of Money Laundering & Combating 12. Information and Communication
Financing of Terrorism Technology (ICT)
Prevention of Money Laundering and Combating IFIC IT has instrumental in setting up a technology
Financing of Terrorism is very essential for protecting backbone to enable IFIC to realize its mission of
corruption and ensuring peace and security in our becoming the preferred financial service provider
society. through innovative, sustainable & inclusive growth
Aiming the said objectives, in our country, Anti- & deliver the best in class value to all stakeholders.
Money Laundering Prevention Act 2012 and Anti- IFIC’s IT has been working relentlessly towards
Terrorism Act 2009 have been enacted and IFIC crystalizing the business strategy through
Bank Ltd has been complying wtih all the rules and procurement of Cutting Edge Technology with the
regulations related to AML/CFT issues since the following objectives:
beginning. zz Efficiency in Customer Booking process;
According to the directives of Bangladesh Financial zz Proficiency in Loan Booking Process;
Intelligence Unit (BFIU) of Bangladesh Bank, the Bank zz Deeper understanding of Customer Requirements;
has prepared as well as revised Money Laundering
zz Increase Customer stickiness through Digital
&Terrorist Financing Risk Management Guidelines-
Channels;
(Amendment), 2016.
zz Increase Effectiveness in Managing Loan Portfolio;
The Chief Anti-Money Laundering Compliance
Officer (CAMLCO) of the Bank regularly presents zz Upgrade Core Banking Platform to a higher version
for increased efficiency in Data Processing.
DIRECTORS’
Highlights of 2017 manner and cyber security of the systems,
the Bank felt the necessity for focusing and
zz Utility Collection
enhancing the security of the following areas
IT division have played a key role by ensuring the
of “Network Architecture”, “Active Network
collection of huge amount of invoices for utility
Devices and Servers” and “Server and Network
bill digitally.
Device’s security Configuration”. In this regard,
zz BACH II Up-gradation Project the Bank has engaged an internationally reputed
As per Bangladesh Bank’s plan to upgrade audit firm to assess the above initiatives and help
BACH (Bangladesh Automated Clearing House), us to strengthen the cyber surface of the Bank.
our IT Division have prepared and procured
zz Nepal Bangladesh Bank Limited and Oman
all necessary Hardware, Software, Operating
system and Database to implement BACH II Exchange LLC
project. IFIC Bank believes in the continuous growth and
endeavor by increasing partnership and sharing
zz Software Development and Integration technical know-how among subsidiaries. In
In the year 2017 the Bank have developed this way, IT Division of the Bank is continuously
software in different areas. Special efforts been working with Nepal Bangladesh Bank Limited
given in payments channels of the Bank and & Oman Exchange LLC to assist them in
utility system. Along with that the Bank also their technology integration and make them
integrated different software with Bangladesh streamline to increase the synergy.
Bank and Core Banking System (CBS) for
customers for ensuring faster & secured banking
13. Corporate Governance
and utility services. We have also introduced
our Open Customer Account (OCA) for Alpha IFIC is always committed to adopt highest corporate
Numeric Customer Id/External for which we have governance standards for attaining its operational
developed in- house Developed User Exit. goals. At IFIC Bank, Corporate Governance is aimed
at increasing the shareholders’ value by being
zz Digital Channel Solution
efficient, transparent, professional and accountable
We are on the process to implement MISYS to the society, stakeholders and the environment as
Digital Channel Solution. For this purpose, IT well.
Division have prepared and ready to procure all
necessary things to provide service regarding IFIC Bank complies with the guidelines regarding
Fusion Banking Digital Channels, Fusion Banking composition of the Board of Directors, all
Loan Origination, Fusion Banking Equation up Committees, term of the Office of the Directors
gradation, and Fusion Banking Teller up gradation. as well as competence and eligibility of the
Directors as outlined by the Bangladesh Bank,
zz High Availability and Disaster Recovery
the Companies Act, 1994 and the Bank Company
For all basic administrations, the bank has created Act, 1991 (Amended up-to 2018). The Bank has
high accessibility to guarantee continuous also implemented the requirements of Corporate
business. In addition an entire arrangement Governance Guidelines of the Bangladesh
is outlined to diminish any server down time Securities & Exchange Commission as enumerated
with the help of full-backup and virtual server in its Notification No. SEC/CMRRCD/2006-158/134/
appliance. The Bank has guaranteed close ADMIN/44 dated 7 August 2012. As per mentioned
continuous reinforcement to recover disaster. Notification of BSEC, the compliance status of the
zz Data Center Relocation Bank has been reported in this Annual Report for
Currently the Bank is on the process to shift information.
its Data Center to IFIC Tower which will require
continuous 112 hours effort equivalent to five 14. Human Resource Management
full days to complete the task. For this reason we
have no other option but to run our business from Human Resource is one of the most essential
our DR site. Therefore, IT Division has upgraded requirements for survival of an institution in this
the DR network infrastructure to run business competitive world, and therefore, IFIC Bank always
smoothly with no interruption. Entire IT division puts due magnitude on the resource to drive the
is engaged to provide continuous all type of organization towards its goal. HRM Division takes
technical support to all other department as well leadership in fostering a positive work environment
as to clients to ensure the best service. that places high value on professional and
collaborative work relationships while recognizing
zz Cyber Security Assessment the importance of individual contributions.
To ensure 24/7 Data Center Support in proper
DIRECTORS’
47
IFIC Bank HRM Division is committed to ensure
that the Bank attracts, recruits, develops and Gender wise Employee
retains a high performing, diverse work force by
developing and implementing progressive human 441
resource management policies and strategies. Our
core competencies includes, organizational and
employees development, compensation & benefits,
HRIS and regulatory compliance.
2013
For proper positioning of its human resources,
IFIC Bank continuously works on restructuring its
organogram based on functionality and places its
Male Female
employees at the right place through appropriate
process. Continuous learning initiatives help the
Bank to overcome employees’ skill deficiencies. 15. Law and Legal Affairs
All the effort in combination ultimately assists in
maximizing the outcome in the bottom line. There were 1509 Suits/Cases pending in both Lower
and Higher Courts suited by/against IFIC Bank. The
With rapid technological changes around the world, number of new Suits/Cases had filed during the period
automation has been crucial area of development from 1 January 2017 to 31 December 2017 were 410
for any organization specially service oriented ones and value against those Suits/Cases were BDT 7,123
like Bank. Accordingly, IFIC Bank HRM Division million. The total 1509 number of Suits/Cases which
has adapted to wide ranging HR software, which had been filed against various defaulting Borrowers
operates the central storage of HR data with a involved an amount of BDT 22,167 million (suit value).
number of extensive workflows, notifications, Considering such huge amount unrealized, the Law and
process automation and analytical reports. It Legal Affairs Division took various pragmatic steps to
establishes a shared environment for HR specialists, realize those outstanding dues of the Bank quickly and
managers and employees in order to provide the as a result Bank was able to dispose of 20 (twenty)
effective management and compliance. Writ Petitions, 30 (thirty) Artha Rin Suits, 07 (seven)
Some HR information at a glance: Execution Cases and 21 (twenty one) Criminal Cases
(under N.I. Act), a total of 78 Cases/Suits/Writ Petitions
and an amount of BDT 334 million was fully realized
Designation Wise
and partial adjustment of BDT 140 million were made
418 from different litigated accounts during the year 2017
and thus, total amount of BDT 474 million was realized.
On the contrary, in the year of 2017, the Law and
Legal Affairs Division provided necessary legal
265
services (Opinion) including preparation of various
Agreements and security documents to different
1771 Divisions, Departments of the Head Office as well
as to 141 Branches of the Bank on day to day basis.
Officers and Executives of Law and Legal Affairs
Executive Officer Support Staff Division regularly attended both Lower and Higher
Courts and also attended the Chamber of Panel
Lawyers who were assigned to conduct the Cases
Age Group (yrs) in an aim to disposing of the pending Court Cases
quickly. Due to such activities, Panel Lawyers of the
522 Bank became very active and conscious about their
responsibilities toward the Bank. Moreover, Officers
361
of Law and Legal Affairs Division also attended
Revenue Courts in Dhaka and outside Dhaka City
and also visited Assistant Commissioner Land and
Tahsil Offices on regular basis to ascertain the legal
679
status of the mortgaged properties. On the other
892 hand, Executives and Officers of Law and Legal
Affairs Division also attended various Govt. Offices
including Anti-Corruption Commission Office, Board
0-29 30-39 40-49 50+ of Revenue Office, Law Commission Office and
CID Office in respect of resolving many pending
DIRECTORS’
legal issues faced by the Bank. It may kindly be 18. Subsidiaries of IFIC
mentioned here that an amount BDT 2,016 million is
remained unrealized due to filing of 57 Nos of Writ There are two subsidiaries of IFIC Bank Limited
Petitions against the Bank which are now pending namely-
in the Hon’ble High Court and Appellate Division of
a) IFIC Securities Limited (IFICSL)
the Supreme Court of Bangladesh. Law and Legal
Affairs Division is trying its best to dispose of the b) IFIC Money Transfer (UK) Limited
Writ Petition within shortest possible time and Panel
Lawyers engaged for the Writ Petitions are working The activities and performance of which are to be
hard in this regard. seen in the relevent area of the Annual Report.
Due to sincere and timely efforts, various divisions of

Head Office and Branches of the Bank got versatile
19. Branding and Promotional Activities
legal services from Law and Legal Affairs Division of IFIC Bank undertook sustained promotional
Head Office and as a consequence, Branches and activities to create awareness about the brand and
Head Office were able to expedite their routine work products in the year 2017.
smoothly. IFIC celebrated its 41st anniversary in 2017 by
undertaking a series of activities engaging its
16. Enterprise Transformation
customers, patrons, stakeholders and employees.
To ensure quality, control, governance & overall An advertisement on the anniversary day was
efficiency of business, operations & customer published at national dailies, nationwide branches
service; Enterprise Transformation develops & were decorated with promotional materials along
reviews standard process, policy, guidelines. Its aim with anniversary cake cutting with valued customers
is to maximize bank’s value & client’s satisfaction and and employees.
ensuring key control measures are not compromised
To promote the groundbreaking product IFIC
by adopting efficient process management &
Aamar Account, a 360 degree campaign was
reengineering, quality assurance, project governance
launched across all available media (TVC and RDC
& operations support.
airing in different channels, series of newspaper
It provides a governance model for the management advertisement insertions in national and local dailies,
and evaluation of business project of the bank billboard advertisements at different strategic
and also ensures better customer service and points, digital media advertisements along with field
quick support to branch officials within controlled level activation).
environment, Operations support manages SWIFT
Promotional activities for IFIC Home Loan across
operation and ID, password and limit in CBS.
the media was very successful in 2017. The Bank
Last but not the least, it aligns the organization’s received positive response from customers as a
activities relating to people, process and technology result of those activities. The bank also promoted its
with IFIC Bank’s business strategy and vision. One Stop Service and a new product IFIC Agami to
create awareness about the product and service.
17. Branch Expansion Program
IFIC Bank organized a Pitha Utshab at Gulshan Branch
During the year 2017, the Bank opened 7 (seven) premises. Top customers, eminent personalities
new Branches at different prospective locations of the society, honorable shareholders and high
of the country to provide banking services to the officials of the bank attended the programme. The
customers. Out of those 7 (seven) Branches, 4 (four) bank celebrated the beginning of Bangla new year
urban Branches were opened at Local Office, Pahela Boishakh by organizing various activities
Motijheel, Dhaka City, Panchlaish, Chittagong City, including an employee event and painting alpona in
Madhabpur, Dist-Habiganj and Jhalakathi, Dist- front of IFIC Tower.
Jhalakathi, 3 (three) rural branches were opened at
Bhawal Mirzapur, Kapasia and Shafipur under Dist- Different television programmes including Kemon
Gazipur. Thus, total number of Branches of the Bank Budget Chai in NTV, Ekushay Book Mela Sorasori
stood at 141 including 7 (seven) SME/Krishi Branches and Rangtulite Muktijudhdho in Channel i were
throughout the country. For business expansion, 17 sponsored by the bank. The Bank also did branding
(seventeen) new ATM Booths were established at of the news scroll and a documentary titled “IFIC
different locations of the country. Besides, the Bank Bank Ei Banglaye’ in ATN News to increase the Bank
is planning to expand its network throughout the brand visibility.
country by opening new Branches and ATM Booths The Bank also sponsored a good number of events
in the year 2018. including the Police Week 2017 and DMP’s Founding
Furthermore, 8 (eight) Branches were relocated with Anniversary, Victory Day Parade of Bangladesh Armed
state of art decoration work during the year 2017. Forces and Jazz Festival of Blues Communication.
DIRECTORS’
49
20. Corporate Social Responsibility those businesses that achieve sustainable growth
have an appetite for change and a commitment to
IFIC Bank undertook following activities in the field constant renewal in all that they do.
of CSR in 2017:
zz IFIC Bank provided blankets for the cold-hit 22. Shares of IFIC Bank Limited
people to Prime Minister’s Relief Fund;
The Authorized Capital and the Paid-up Capital of the
zz The Bank rewarded two winners of IFIC Bank Bank stood at BDT 20,000 million and BDT 11,953
Shahittyo Purosker; million respectively as on 31 December 2017. A total
zz The Bank handed over a donation to number of 1,174,817,112 shares are recorded with
Prime Minister’s Education Support Trust the Central Depository Bangladesh Limited (CDBL),
(Prodhanmontrir Shikhkha Shohayota Trust); while 20,485,330 shares still remain in scrip form till
zz The Bank provided money to Shuchona the Balance Sheet date.
Foundation for the welfare of autistic children; The consolidated Net Asset Value (NAV) per share
zz The Bank donated money to Bangabandhu was BDT 18.49 as on 31 December 2017 which
Sheikh Mujibur Rahman Memorial Trust; was BDT 24.69 as on 31 December 2016. The
zz Dhamura Bohumukhi Madhyamik Bidyaloy consolidated Earnings per Share (EPS) were BDT
received donations for students’ stipend and 2.34 for the year ended on 31 December 2017 as
playground development; against BDT 1.79 as on 31 December 2016. The
Market Capitalization of IFIC was BDT 21,515 million
zz Biswashahitya Kendra received a donation to
at the end of the year 2017 as against BDT 11,784
support their educational activities;
million at the end of the year 2016.
zz The Bank donated money to a Day Care Center
for the children of Banks’ employees; and 23. Dividend
zz The Bank donated multimedia projectors to
The Board of Directors in its 724th Meeting held on
Rajarbagh Police Line School & College.
10 April 2018 has recommended 12% Stock Dividend
for the Shareholders for the year 2017 subject to
21. Business Focus
approval of the Shareholders in the 41st Annual
The principal activities of the Bank are banking General Meeting.
and related businesses under the Bank Company
Act, 1991 (Amended up to 2018). The core banking 24. Appointment of External Auditors
businesses include accepting deposits and granting
In the 40th Annual General Meeting of the Bank, M/s.
loans and advances out of those deposits and earning
M. J. Abedin & Co., Chartered Accountants were re-
profit through creating value from gap between
appointed as the External Auditor of the Bank for
interest paid on deposits and interest earned on
the term till conclusion of the next Annual General
loans and advances. The depositors supply funds
Meeting. Since M/s. M. J. Abedin & Co. has completed
for loans and advances. The Bank collects deposits
their third year of audit, and in terms of Bangladesh
through deposit mobilization strategy comprising
Bank’s Guidelines and the directives of BSEC, they
various deposit products. The Bank’s central revenue
are not eligible for re-appointment.
producing activities include all kinds of commercial
banking products and services to the customers As such, seven “A” graded Chartered Accountants
including project finance, working capital finance Firms has expressed their interest to act as the
and trade finance for corporate customers, SME External Auditors of the Bank for the year 2018.
loans to small traders and businesses, house building Out of them, M/s. Howladar Yunus & Co., Chartered
loan, car loan as well as wide range of life-style and Accountants are recommended for appointment as
need based loans for retail customers. The Bank has the External Auditors of the Bank for the term till the
been able to develop state-of-the-art IT platform conclusion of the next Annual General Meeting.
and online banking systems facilitating any branch
banking, Mobile banking, SMS banking, internet 25. Rotation of Directors
banking, any time banking for 24 hours a day and 7 In order to comply with the provision mentioned
days a week through ATMs. under Section 91(2) of the Companies Act, 1994 and
2017 has been a year of significant progress for us. Clause Nos. 109 & 110 of the Articles of Association
Building on our consistent track record of growth, the of the Bank, at least one third of the Directors shall
Bank shall continue to deliver a strong performance, retire from the Office in the 41st Annual General
both operationally and financially. Meeting.
Our aim is to build a business that is durable for the As per Clause No. 111 of the Articles of Association
long term, one that creates value for shareholders of the Bank, the retiring Directors are eligible for re-
and also acts responsibly in the interests of the wider election.
communities in which we operate. We believe that
DIRECTORS’
26. Dependability for Internal Control management and the internal auditors, the Directors
and Financial Reporting are of the opinion that the internal financial controls
are adequate and that the financial records may be
The Board has collective responsibility for the relied upon for preparing the financial statements
management, direction and performance of the in accordance with BAS and BFRS to maintain
Bank and provides leadership within a framework accountability for the Bank’s assets and liabilities.
of prudent and effective controls which enables
risk to be appropriately assessed and managed. The The Directors have a reasonable expectation that
Board sets the strategic direction, ensuring that the the Bank and its subsidiaries will have adequate
necessary resources are in place for the Company resources to continue as a going concern for the
to meet its objectives and deliver sustainable foreseeable future.
performance.
27. Acknowledgement
The Board takes a long term outlook and sees itself
as responsible to a wide range of stakeholders, The success of the Bank is mainly attributable to the
whilst pursuing its objectives in a manner consistent support and co-operation received from the different
with its statutory duties for the benefit of the Bank’s group of stakeholders. With the sincere and devoted
members as a whole. efforts of all the Executives, Officials and members
of the staff, IFIC Bank has made remarkable
The Directors of the Board are selected on the progress in 2017. The Board of Directors takes this
criteria of proven skill and ability in their particular opportunity to thank all of them for their dedicated
field and diversity of outlook and experience which services. The Board expresses its profound gratitude
directly benefits the operation of the Board as the to the Government of Bangladesh, Bangladesh Bank,
custodian of the business. Bangladesh Securities and Exchange Commission,
The Board of Directors of the Bank is accountable Registrar of Joint Stock Companies and Firms, Dhaka
for Bank’s system of internal control. It has set Stock Exchange Limited, Chittagong Stock Exchange
appropriate policies on internal control and seeks Limited and Central Depository Bangladesh Limited
regular assurance of its functioning effectively. for their continued support and co-operation to the
Through the establishment of the Audit Committee, Bank. The Board also thanks all for their unwavering
the Board of Directors regularly monitors the continued co-operation and hopes that their
adequacy & effectiveness of internal control system valuable support will remain intact in future. The
of the Bank. Board gratefully acknowledges the support provided
by all valued customers who have been with us in the
The MANCOM also reviews the overall effectiveness course of our journey. The Board also places on record
of the control system of the Bank & provides a its thanks and gratitude for the valued contributions
certificate on yearly basis to the Board of Directors made by all the patrons and well-wishers of the Bank
on the effectiveness of internal control policies, in attaining its sustainable growth and progress. The
practices & procedures. Board also expresses its appreciations to M/s. M.
As per directives of Bangladesh Bank, a special J. Abedin & Co., the External Auditors of the Bank,
meeting of the Board of Directors is arranged annually for their efforts for timely completion of audit of
for reviewing the compliance/implementation status the Financial Statements of the Bank. The Board of
of the observations/recommendations of Bangladesh Directors further extends thanks to both the print
Bank’s comprehensive inspection report on the Bank. and electronic media personnel for extending media
coverage to the Bank’s various activities and events
According to the Company Law, the Directors are
throughout the year.
responsible for the preparation of the annual financial
statements. The annual financial statements Last but not the least, the Board expresses its thanks
conform to Bangladesh Accounting Standards (BAS) to the respected Shareholders and assures them that
and Bangladesh Financial Reporting Standards the Bank will continue to add to the Shareholders’
(BFRS) and Bangladesh Bank Directives and fairly value through gradual growth of business and
present the affairs of the Bank and its subsidiaries sustained customers’ satisfaction, in which they
as at the end of the financial year, profit & loss and have placed trust and confidence.
cash-flows for that period.
Accounting policies supported by judgments, For and on behalf of the Board of Directors
estimates and assumptions in compliance with BAS
and BFRS are applied on the basis that the Bank shall
continue as a going concern. Systems and controls
include the proper delegation of responsibilities within
a clearly defined framework, effective accounting
procedures and adequate segregation of duties. Salman F Rahman
Based on the information and explanations given by Chairman
DIRECTORS’
51
DIRECTORS’
Report of the Executive Committee
The Executive Committee of the Board of Directors of IFIC Bank Limited was lastly re-constituted by the
Board of Directors of the Bank in its 673rd Meeting held on 27 April 2016 with the following 02 (two) Members:
Mr. A. R. M. Nazmus Sakib Chairman
Ms. Quamrun Naher Ahmed Member
The Company Secretary of the Bank is the Secretary of the Executive Committee of the Board.
The above mentioned Executive Committee of the Board was formed in line with the directives of BRPD
Circular No. 11 dated 27 October 2013.
The Terms of Reference of the Executive Committee, in addition to the roles and responsibilities mentioned
in the BRPD Circular No. 11 dated 27 October 2013, as approved by the Board is as follows:
a. All business proposals other than large loans are placed before the Executive Committee for consideration
and approval.
b. Purchase of electric/electronic equipments, computers and its accessories, air-conditioners, generators

and vehicles are also considered and approved by the Committee.
However, the decisions of the Executive Committee as recorded in the Minutes of the Meetings are placed
before the Board in the subsequent Meeting for ratification.
During the year of 2017, 02 (two) Meetings of the Executive Committee were held where a total of 17 nos.
proposals/issues were considered/decided by the Committee.
The particulars of attendance of the members of the Executive Committee are given below:
Total number of meetings held Total

Name of the Director Position Remarks
during 2017 attendance
Mr. A. R. M. Nazmus Sakib Chairman 02 02
Ms. Quamrun Naher Ahmed Member 02 02
The Executive Committee expresses its sincere thanks to the Members of the Board and the Management of
IFIC Bank Limited for their support and guidance in the course of carrying out the duties and responsibilities
of the Committee. The Executive Committee also expresses its satisfaction regarding the roles and
responsibilities discharged by the Management of the Bank.
A. R. M. Nazmus Sakib
Chairman, Executive Committee
REPORT OF
53
THE EXECUTIVE COMMITTEE Annual Report 2017
DIRECTORS’
Report on the Activities of the Audit Committee
The Audit Committee of the Board of Directors of IFIC Bank Limited was lastly re-constituted by the Board
of Directors in its 657th Meeting held on 16 September 2015 in accordance with the directives of the BRPD
Circular No. 11 dated 27 October 2013 issued by Bangladesh Bank and the Notification of Bangladesh
Securities and Exchange Commission vide No. SEC/CMRRCD/2006-158/134/admin/44 dated 07 August
2012.
The Audit Committee of the Board is comprised of 03 (three) members from the Board of Directors including
02 (two) Independent Directors. The composition of the Audit Committee of the Board is as follows:
Mr. Monirul Islam Independent Director Chairman

(Up to 20 December 2017)
Mr. Anwaruzzaman Chowdhury Independent Director Member
Mr. Jalal Ahmed Director Member
The Company Secretary of the Bank is the Secretary of the Audit Committee of the Board.
The Audit Committee is a sub-committee of the Board of Directors and reports on its activities on quarterly
basis to the Board of Directors. The purpose of the Audit Committee is to assist the Board in fulfilling its
oversight responsibilities, which includes but is not limited to implementation of the objectives, strategies, risk
mitigation, and overall business plans set by the Board for effective functioning of the Bank. The Committee
also reviews the financial reporting process, the system of internal control and management of financial &
operational risks through the Internal Control process.
The Audit Committee of the Board usually sits once in every month.
A total of 12 (twelve) Audit Committee Meetings were held during the year 2017.
The particulars of attendance of the members of the Audit Committee are given below:
Total number of meetings Total

held during 2017 attendance
Mr. Monirul Islam

Chairman 12 12 Directors who
could not attend
Mr. Anwaruzzaman any meeting
Member 12 01
Chowdhury were granted
leave of absence.
Mr. Jalal Ahmed Member 12 11
The Audit Committee, in the above 12 (twelve) meetings, discussed many issues, some of which were:
zz Risk Based Internal Audit & Inspection Plan for 2017;

zz Summary Report of Brief Highlight on Audit & Inspection Reports of the Branches conducted by Internal
Control & Compliance Division;
zz Summary Report on Comprehensive Inspection on Dhanmondi, Narayangonj, Shantinagar, Sk. Mujib Road,
Shah Amanat Market, Dinajpur, Mymensingh, Comilla, Progati Sarani, Madam Bibir Hat, Alankar More,
Noapara, Konabari, Takerhat, Savar Bazar Branches conducted by the Bangladesh Bank Inspection Team;
zz Information of Classified Advances with action plan of Shah Amanat Market, Alankar More, Shetabgonj
and Kaligonj Branches;
zz Statement of Fraud & Forgeries occurred in the Bank up to 31 December 2016;
zz Placement of Mr. Syed Hassanuzzaman, SVP as Head of Internal Audit & Inspection, ICC Division;
REPORT ON THE ACTIVITIES OF

55
THE AUDIT COMMITTEE Annual Report 2017
zz Auditors Report and Audited Financial Statements as at and for the year ended 31 December 2016;
zz Management Report on the Financial Statements for the year ended 31 December 2016;
zz Recommendation for approval of un-audited Condensed Financial Statements as at and for the 1st Quarter
(Q1) ended 31 March 2017;
zz Summary Report on Comprehensive Inspection on Sylhet, Keranigonj, Bagerhat, Chapai Nawabgonj,
Benapole and Panchobati Branches Conducted by the Bangladesh Bank Inspection Team;
zz Re-appointment of External Auditors of the Bank;
zz Bangladesh Bank Inspection Report on International Business, Foreign Exchange Business & Transactions
on the Bank as on the position of 01 July 2015 to 30 June 2016;
zz Approval of un-audited Condensed Financial Statements as at and for the 2nd Quarter ended 30 June 2017;
zz Summary Report of Brief Highlight on Audit & Inspection Reports in the New Format conducted by
Internal Control & Compliance Division;
zz Summary Report on Foreign Exchange Business & Transaction on Principal & Uttara Branch conducted by
the Bangladesh Bank Inspection Team;
zz Recommendation for approval of un-audited Condensed Financial Statements as at and for the 3rd Quarter
ended 30 September 2017;
zz Annual Health Report for the year 2016;
zz Bangladesh Bank 32nd Comprehensive Inspection Report on the Bank as on the position of 31 December
2016;
zz Summary Report on Comprehensive Inspection on Principal Branch, Federation Branch, Agrabad
Branch, Kawranbazar Branch, Barisal Branch & Mymensingh Branch conducted by the Bangladesh Bank
Inspection Team;
zz Summary Report on Foreign Exchange Business & Transaction on Dhanmondi & Rajshahi Branch
conducted by the Bangladesh Bank Inspection Team;
zz Risk Based Internal Audit (RBIA) Plan for 2018.
From our assessment of the various internal audit reports, it appears that IFIC Bank Limited maintained
effective Internal Control on its overall activities during the year 2017.
Rabeya Jamali
Chairman, Audit Committee
REPORT ON THE ACTIVITIES OF

56 Annual Report 2017 THE AUDIT COMMITTEE
DIRECTORS’
57
Report of the Risk Management Committee
The Risk Management Committee of the Board of Directors of IFIC Bank Limited was lastly re-constituted
by the Board of Directors of the Bank in its 673rd Meeting held on 27 April 2016 with the following 04 (four)
Members:
Mr. Jalal Ahmed Chairman
Mr. Monirul Islam Member

Mr. A. R. M. Nazmus Sakib Member
Ms. Quamrun Naher Ahmed Member
The Company Secretary of the Bank is the Secretary of the Risk Management Committee of the Board.
The above mentioned Risk Management Committee of the Board was formed in line with the directives of
BRPD Circular No. 11 dated 27 October 2013.
The Risk Management Committee, as authorized by the Board, performs as per roles and responsibilities
mentioned in the BRPD Circular No. 11 dated 27 October 2013.
During the year 2017, 07 (seven) Meetings of the Risk Management Committee were held where a total of 22
nos. proposals/issues were considered/decided by the Committee.
The particulars of attendance of the members of the Risk Management Committee are given below:
Total number of meetings Total

held during 2017 attendance
Mr. Jalal Ahmed Chairman 07 07
Mr. Monirul Islam
Member 07 07
Mr. A. R. M. Nazmus Sakib Member 07 07
Ms. Quamrun Naher Ahmed Member 07 07
However, the decisions of the Risk Management Committee as recorded in the Minutes of the Meetings are
placed before the Board on quarterly basis.
The Risk Management Committee expresses its sincere thanks to the Members of the Board and the
Management of IFIC Bank Limited for their support and guidance in the course of carrying out the duties
and responsibilities of the Committee. The Risk Management Committee also expresses its satisfaction
regarding the roles and responsibilities discharged by the Management of the Bank.
Jalal Ahmed
Chairman, Risk Management Committee
REPORT OF
58 Annual Report 2017 THE RISK MANAGEMENT COMMITTEE
Corporate Governance Practices
Corporate Governance indicates the policies and Members’ Meetings
procedures applied by us to attain certain sets of The supreme authority in the Bank’s affairs, within
our objectives, corporate missions and visions with the limits established by the Articles of Association
regard to shareholders, employees, customers, and statutory law, rests with legitimate meetings of
suppliers and different regulatory agencies and the Members of the Bank. The Bank’s Annual General
the community at large. The role of governance Meeting is held within statutorily allowed time every
is to maximize shareholders’ wealth. Corporate year and may also hold any other meeting, as and
Governance depends on managerial performance when required. At Members’ meeting, each share
as well as a consideration of social responsibility, carries one vote. Decisions at Members’ meetings
the socio-cultural-environmental dimension of are taken by majority vote unless there are contrary
business procedure, legal and ethical practices with provisions in the Bank’s Articles of Association or
a focus on customers and other stakeholders of our statutory law.
organization.
Although Members acting through the forum of the
We are committed to excellence in corporate General Meeting exercise ultimate check over a
governance, transparency and accountability. This company, yet they do not interfere with the exercise
is essential for the long term performance and of powers which are vested in the Board.
sustainability of our Company, and to protect and
enhance the interests of our shareholders and other The Board of Directors
stakeholders. The Board of Directors, collectively, is the supreme
authority in the Bank’s affairs between Members’
Our governance framework plays an integral role in
meetings. They owe a duty to the shareholders and
supporting our business. It provides the structure
exercise care, skill and diligence in discharging their
through which our strategy and business objectives
responsibilities and in exercising the powers vested
are set, our performance is monitored, and the risks
in them.
we face are managed. It includes a clear framework
for decision making and accountability across our The key purpose of the Board of Directors of IFIC
business and provides guidance on the standards of Bank Limited is to ensure the company’s prosperity
behavior we expect from our people. by collectively directing the company’s affairs, whilst
meeting the appropriate interests of its shareholders
We regularly review our governance arrangements
and other stakeholders. In addition to business and
as well as developments in the market practices,
financial issues, the Board deals with challenges
expectations and regulation to establish good
and issues relating to corporate governance,
corporate governance in our Bank. We have
corporate social responsibility and corporate ethics
modernized our governance system and
and ensures that its organization and operation are,
implemented the rules as several prudential
at all times, in correct and appropriate order. The
regulations specifying qualification of a Bank
Board is, among other things, responsible for setting
Director and a Chief Executive Officer and most
business objectives, strategies and business plans,
importantly 3 (three) Circulars/Circular Letters
formulating risk policies, confirming key aspects of
issued by Bangladesh Bank on 27 October 2013 in
the Bank’s internal organization and making decisions
connection with formation and responsibilities of
on the establishment of branches. As a mechanism
Board of Directors of a Bank Company to comply
of budgetary control, the Board approves budget
with the existing rules and regulations in line with the
and reviews the business plan on quarterly basis
Bank Company Act, 1991 (Amended up to 2018) as
so as to give directions as per changing economic
well as Corporate Governance Guidelines issued by
and market environment. The Board also reviews
Bangladesh Securities and Exchange Commission.
the policies and guidelines issued by Bangladesh
We consider good corporate governance to be a Bank and gives directions for their due compliance.
prerequisite for value creation and reliability: Furthermore, Board of Directors develops and
reviews corporate governance framework as well
zz Governance principles;
as recommends to the shareholders to appoint an
zz Transparency in business transactions; external auditor.
zz Statutory and legal compliances;
zz Protection of shareholders’ interests;
Composition of the Board
The Board of IFIC Bank Limited consists of 7
zz Commitment to values and ethical conduct of
(seven) Members including the Managing Director
business;
as Executive Director and ex-officio member of
zz Applying values to create value. the Board. As per the guidelines of Bangladesh
59
PRACTICES Annual Report 2017
Bank and as well as in compliance with the of the Bank. The Committee reviews the financial
Bangladesh Securities and Exchange Commission’s reporting process, the system of internal control and
Corporate Governance Guidelines, there are 2 (two) management of financial risks, the audit process, and
Independent Directors in the Board. the Bank’s process for monitoring compliance with
laws and regulations and its own code of business
Re-election of Directors conduct. The report is given hereinbefore.
In compliance with the Companies Act, BSEC’s
Notifiction and Bank’s Articles of Association, each Risk Management Committee
Director, other than the Independent Director and To assist the Board of Directors in fulfilling its
Managing Director, retires by rotation once in every oversight responsibilities and to play effective role
three years and is required to stand for re-election in minimizing current and future risks arised on the
by the shareholders at the Annual General Meeting. affairs of making strategies consistent with the
determined objectives and goals and in the issues
Independent Director relating to structural change and reorganization for
To comply with the Corporate Governance enhancement of institutional efficiency and other
Guidelines of Bangladesh Securities and Exchange relevant policy matters, the Risk Management
Commission, the Board of Directors appointed Committee has been constituted. The Risk
2 (two) Independent Directors in the Board, Management Committee in Management level
appointment of one of them was already approved has also been reorganized. The report of the Risk
by the shareholders and appointment of the other Management Committee is deployed hereinbefore.
one will be placed for approval in the 41st Annual
General Meeting. A full compliance report of the said Directors’ Remuneration
guidelines is provided hereafter. The non-executive directors (Directors other than
the Managing Director) of the Board representing
Board Meetings shareholders do not take any remuneration or
During the year 2017, there were 28 meetings of the reimbursement of any expenses for attending
Board. The attendance by each Director at the Board Board meeting or for any other purpose. The Board
Meeting held during the year is provided hereafter. members receive only BDT 8,000 for attending the
Board/Committee meetings. The fees given to the
Executive Committee directors are disclosed in the note to the financial
As approved by Bangladesh Bank, the Board has its statements.
Executive Committee. The committee comprises of
2 (two) Members from the Board. In order to have Management
functioning and quick disposal of credit proposals, The Managing Director, as directed by the Board
the Board has delegated authority to Executive of Directors, is the Chief Executive Officer (CEO)
Committee of the Board to approve proposal within of the Bank. In terms of the financial, business and
certain limit and it is observed to be effective to administrative authorities vested upon him by the
accelerate the various decisions which otherwise Board, the CEO discharges his own responsibilities.
had to wait for Board meeting. The committee He remains accountable for achievement of
met twice during the year 2017. The report of the financial and other business targets by means of
Executive Committee is deployed hereinbefore. business plan, efficient implementation thereof and
prudent administrative and financial management.
Audit Committee He also ensures that Bank’s accounts and finances
Audit Committee of the Board of a bank can play conform to applicable laws and accepted standards.
an effective role in providing a bridge between Therefore, being empowered by the Board, the
the Board and the Management, Shareholders, Managing Director leads the Management consisting
Depositors and other Stakeholders and help in of the executives of the Bank. Management
ensuring efficient, safe and sound banking practices. functions through several committees headed by
Role of the Audit Committee is also important the Managing Director or empowered executives
in evolving an effective procedure for financial of the Bank. The committees are MANCOM, ALCO,
reporting disclosure, developing a suitable internal Risk Management and Basel Committee etc.
control system and maintaining liaison with internal Management enjoys absolute power in respect of
and external auditors to minimize various business recruitment, posting and promotion of manpower
risks. in accordance with Bangladesh Bank’s guidelines.
As guided by Bangladesh Bank, the Audit In addition, Board has delegated adequate
Committee assists the Board in fulfilling its administrative, business and financial power to the
oversight responsibilities including implementation Management for quick and efficient discharge of
of the objectives, strategies and overall business Bank’s activities.
plans set by the Board for effective functioning
60 Annual Report 2017 PRACTICES
Compliance of BRPD Circular Letter No-03 and BSEC through official letters for appearance in
their websites. Quarterly Financial Statements are
The Bank complied the BRPD Circular Letter No.-03
communicated to all the Members through DSE,
dated 25 March 2018 and appointed Mr. Dilip Kumar
CSE and BSEC as well as publication of the same
Mandal as Chief Financial Officer and Mr. Md. Nazmul
in at least two widely circulated national dailies.
Haque Talukder as Chief Information Technology
Audited yearly financial statements are published
Officer.
through Annual Report and the report is furnished
Financial, Statutory and Regulatory Reporting and to the shareholders as well as regulators. Finally, we
Compliance arrange Annual General Meeting as our statutory
In the preparation of quarterly, semi-annual and duty to give our shareholders parliamentary session
annual financial statements, the Bank has complied to communicate their assertions about the Bank. All
with the requirements of the Companies Act 1994, the suggestions or recommendations made by the
Bank Company Act, 1991 (Amended up to 2018) and Members in the AGM or any time during the year
rules & regulations of Bangladesh Bank, BSEC and are taken very seriously for compliance and better
Stock Exchanges. Status of various compliances is corporate governance of the Bank.
given hereafter.
Credit Ratings
Internal Control The Bank is rated by Credit Rating Agency of
The Board of Directors acknowledges their overall Bangladesh (CRAB) Limited. They have reaffirmed
responsibility for the Bank’s system of internal both the long term rating of the Bank to “AA2” and
control and for reviewing its effectiveness. Internal short term rating at “ST-2” with validity up to 30 June
control is an ongoing process for identifying, 2018.
evaluating and managing the significant risks faced
by the Bank. The Bank has taken all-out efforts to Compliance Report on BSEC’s Notification
mitigate all sorts of risk as per guidelines issued by The Bangladesh Securities and Exchange
Bangladesh Bank. Internal Control & Compliance Commission (BSEC) requires all listed companies to
Division, Risk Management and Credit Risk report on the compliance of the conditions described
Management Unit are working towards mitigation of in BSEC’s Notification dated 07 August 2012 on
operational and compliance risks of the Bank. ‘comply’ basis. The Board of Directors of IFIC Bank
Limited has taken appropriate steps to comply with
External Audit the conditions.
M/s. M. J. Abedin & Co., Chartered Accountants is the
statutory auditors of the Bank. They do not provide
any other accounting, taxation or advisory services
to the Bank except certification of cash incentives
payable to the exporters, if any.
Audit and Inspection by Bangladesh Bank

Bangladesh Bank also undertakes audit & inspection
at the Bank at their determined intervals. Compliance
with observations and recommendations made by
Bangladesh Bank help the Bank to improve internal
control, risk management, corporate governance
and regulatory compliance maximizing benefit for all
stakeholders.
Proclamation to Shareholders
The Bank acknowledges and takes necessary
steps to provide shareholders with all relevant and
reliable information to allow them to make informed
judgment and decisions. Regulated path and way
are completely obeyed for appropriate and effective
communication. All relevant information is placed
in website of the Bank for convenience of the
shareholders. Moreover, as per BSEC’s guidelines,
all the price sensitive information having possible
impact on share prices of the Bank are communicated
to the shareholders by publication in the National
Dailies, Online news portal and to the DSE, CSE,
61
Compliance Report on BSEC’s Notification
The Bangladesh Securities and Exchange Commission (BSEC) requires all listed companies to report on the
compliance of the conditions described in BSEC’s Notification dated 07 August 2012 on ‘comply’ basis. The
Board of Directors of IFIC Bank Limited has taken appropriate steps to comply with the conditions as detailed
hereunder:
Annexure-I
Compliance of Condition No. 1.5 (xx): Board Meetings held during the year 2017 and
attendance by each Director:
No. of No. of
SL
Name of the Directors Position Meetings Meetings Remarks
No.
held attended
01. Mr. Salman F Rahman Chairman 28 25
02. Mr. Monirul Islam Independent Director 27 27

Directors who
03. Mr. Anwaruzzaman Chowdhury Independent Director 28 02 could not
Ms. Rabeya Jamali attend any
04. (Since 21 December 2017)
Independent Director Nil Nil meeting were
granted leave
05. Mr. Jalal Ahmed Govt. Nominated Director 28 21 of absence by
06. Mr. A. R. M. Nazmus Sakib Govt. Nominated Director 28 27 the Board.
07. Ms. Quamrun Naher Ahmed Govt. Nominated Director 28 27

08. Mr. M Shah Alam Sarwar Managing Director & CEO 28 28
Annexure-II
Compliance of Condition 1.5 (xxi): The pattern of Shareholding as on 31 December 2017
(a) Parent/Subsidiary/Associated companies and other related parties: Nil

(b) Directors, Chief Executive Officer (CEO), Company Secretary, Chief Financial Officer, Head of Internal
Audit (ICC) and their spouses and minor children:
SL Name of the Directors Shares held Name of the Spouses Shares held
01. Mr. Salman F Rahman 23,912,781 Mrs. Syeda Rubaba Rahman Nil
02. Mr. Anwaruzzaman Chowdhury Nil Mrs. Holy Begum Chowdhury Nil
03. Ms. Rabeya Jamali Nil N/A Nil
04. Mr. Jalal Ahmed* Nil Mrs. Farah Diba Ahmed Nil
05. Mr. A. R. M. Nazmus Sakib* Nil Mrs. Fetematuj Jahera Nil
06. Ms. Quamrun Naher Ahmed* Nil Mr. A. B. M. Siddiqur Rahman Nil
* Directors nominated by the Ministry of Finance, Govt. of the People’s Republic of Bangladesh against its holding of 391,444,309 nos.
shares of the Bank.
Managing Director & CEO and his spouse and minor children - Mr. M Shah Alam Sarwar Nil
Company Secretary and his spouse and minor children - Mr. Md. Mokammel Hoque Nil
Chief Financial Officer and his spouse and minor children - Mr. Dilip Kumar Mandal Nil
Head of Internal Audit and his spouse and minor children - Mr. Md. Bader Kamal Nil
(c) Executives (Top five salaried employees of the company, other than stated in 1.5 (xxi)(b):
SL Designation Name Shares held
01. Deputy Managing Director & CRO Mr. M. M. Haikal Hashmi Nil
02. Deputy Managing Director & COO Mr. Raihan Ul Ameen Nil
03. Deputy Managing Director (Business) Mr. Shah Md. Moinuddin Nil
04. Deputy Managing Director (Business Delivery) Mr. Md. Nurul Hasnat Nil
05. SEVP & Chief Credit Officer Mr. Syed Mansur Mustafa Nil
(d) Shareholders holding ten percent (10%) or more voting interest in the Company: Govt. of the People’s
Republic of Bangladesh holds 391,444,309 nos. shares which is 32.75 percent of the total outstanding
shares of the Bank.
Annexure-III
Status of Compliance with the conditions imposed by the Bangladesh Securities and Exchange Commission’s
Notification No.SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August 2012 issued under section 2CC of the
Securities and Exchange Ordinance, 1969:
Report under condition no. 7 (ii)
Compliance Status Remarks

Condition
Title (ahas been Put in the
No. (if any)
appropriate column)
Non-
Complied
complied
1 Board of Directors:
Board’s Size:
1.1 Number of Board Members shall not be less than 5 (five) and more a
than 20 (twenty)
1.2 Independent Directors:
At least one fifth (1/5) of the total number of Directors of Board

1.2 (i) a
shall be Independent Directors
1.2 (ii) Independent Directors means a Director:
Who either does not hold any share in the company or holds less
1.2 (ii) (a) than one percent (1%) shares of the total paid-up shares of the a
company
Who is not a sponsor of the company and is not connected with

the company’s any sponsor or Director or shareholder who holds
one percent (1%) or more shares of the total paid-up shares of
1.2 (ii) (b) a
the company on the basis of family relationship. His/her family
members also should not hold above mentioned shares in the
company
Who does not have any other relationship, whether pecuniary

1.2 (ii) (c) or otherwise, with the company or its subsidiary/associated a
companies
1.2 (ii) (d) Who is not a Member, Director or Officer of any Stock Exchange a
Who is not a shareholder, Director or Officer of any Member of

1.2 (ii) (e) a
Stock Exchange or an intermediary of the capital market
63
Condition
No. (if any)
appropriate column)
Non-
Complied
complied
Who is not a partner or an Executive or was not a partner or an

1.2 (ii) (f) Executive during the preceding 3 (three) years of the concerned a
company’s statutory audit firm;
Who shall not be an Independent Director in more than 3 (three)

1.2 (ii) (g) a
listed companies
Who has not been convicted by a court of competent jurisdiction

1.2 (ii) (h) as a defaulter in payment of any loan to a Bank or a Non-Bank a
Financial Institution (NBFI);
Who has not been convicted for a criminal offence involving moral
1.2 (ii) (i) a
turpitude
The Independent Director (s) shall be appointed by the Board of

1.2 (iii) Directors and approved by the Shareholders in the Annual General a
Meeting (AGM)
The post of Independent Director (s) cannot remain vacant for

1.2 (iv) a
more than 90 (ninety) days
The Board shall lay down a code of conduct of all Board members
1.2 (v) a
and annual compliance of the code to be recorded
The tenure of office of an Independent Director shall be for a period

1.2 (vi) a
of 3 (three) years, which may be extended for 1 (one) term only
1.3 Qualification of Independent Director:
Independent Director shall be a knowledgeable individual with

1.3 (i) integrity who is able to ensure compliance with financial, regulatory
a
and corporate laws and can make meaningful contribution to
business
The person should be a Business Leader/Corporate Leader/

Bureaucrat/University Teacher with Economics or Business Studies
or Law background/ Professionals like Chartered Accountants,
1.3 (ii) a
Cost & Management Accountants, and Chartered Secretaries.
The independent director must have at least 12 (twelve) years of
corporate management/ professional experiences
In special cases the above qualifications may be relaxed subject to

1.3 (iii) N/A
prior approval of the Commission
1.4 Chairman of the Board & Chief Executive Officer (CEO):
The Chairman of the Board and the Chief Executive Officer shall be
1.4 different individuals. The Chairman shall be elected from among
a
the directors. The Board of Directors shall clearly define respective
roles and responsibilities of the Chairman and the CEO
1.5 The Directors’ Report shall include the following additional statements:
1.5 (i) Industry outlook and possible future developments in the industry a
1.5 (ii) Segment-wise or product-wise performance a
1.5 (iii) Risks and concerns a
A discussion on Cost of Goods sold, Gross Profit Margin and Net

1.5 (iv) a
Profit Margin
1.5 (v) Discussion on continuity of any Extra-Ordinary gain or loss a
Condition
No. (if any)
appropriate column)
Non-
Complied
complied
Basis for related party transactions- a statement of all related party

1.5 (vi) a
transactions should be disclosed in the annual report
Utilization of proceeds from public issues, rights issues and/or

1.5 (vii) a
through any others instruments
An explanation if the financial results deteriorate after the

1.5 (viii) company goes for Initial Public Offering (IPO), Repeat Public N/A
Offering (RPO), Rights Offer, Direct Listing, etc
If significant variance occurs between Quarterly Financial

1.5 (ix) performance and Annual Financial Statements the management N/A
shall explain about the variance on their Annual Report
1.5 (x) Remuneration to Directors including Independent Directors a
The financial statements prepared by the management of the

1.5 (xi) issuer company present fairly its state of affairs, the result of its a
operations, cash flows and changes in equity
Proper books of account of the issuer company have been

1.5 (xii) a
maintained
Appropriate accounting policies have been consistently applied in

1.5 (xiii) preparation of the financial statements and that the accounting a
estimates are based on reasonable and prudent judgment
International Accounting Standards (IAS)/Bangladesh Accounting

Standards (BAS)/International Financial Reporting Standards
(IFRS)/Bangladesh Financial Reporting Standards (BFRS), as
1.5 (xiv) a
applicable in Bangladesh, have been followed in preparation of
the financial statements and any departure there-from has been
adequately disclosed
The system of internal control is sound in design and has been

1.5 (xv) a
effectively implemented and monitored
There are no significant doubts upon the issuer company’s ability

to continue as a going concern. If the issuer company is not
1.5 (xvi) a
considered to be a going concern, the fact along with reasons
thereof should be disclosed
Significant deviations from the last year’s operating results of the

1.5 (xvii) issuer company shall be highlighted and the reasons thereof should a
be explained
Key operating and financial data of at least preceding 5 (five) years

1.5 (xviii) a
shall be summarized
1.5 (xix) Reason for non declaration of dividend N/A
The number of Board meetings held during the year and

1.5 (xx) a
attendance by each Director shall be disclosed
1.5 (xxi) Pattern of shareholding and name wise details (disclosing aggregate number of shares):
1.5 (xxi)(a) Parent/Subsidiary/Associated Companies and other related parties a
Directors, Chief Executive Officer, Company Secretary, Chief

1.5 (xxi)(b) Financial Officer, Head of Internal Audit and their spouses and a
minor children
65
Condition
No. (if any)
appropriate column)
Non-
Complied
complied
Executives (top five salaried employees other than stated in 1.5 (xxi)
1.5 (xxi)(c) a
(b)
Shareholders holding ten percent (10%) or more voting interest in

1.5 (xxi)(d) a
the company
In case of the appointment/re-appointment of a director the

1.5 (xxii) a
company shall disclose
1.5(xxii)(a) A brief resume of the director a
1.5(xxii)(b) Nature of his/her expertise in specific functional areas a
Names of companies in which the person also holds the

1.5(xxii)(c) a
directorship and the membership of committees of the board
2 Chief Financial Officer (CFO), Head of Internal Audit (HIA) and Company Secretary (CS):
2.1 Appointment of CFO, HIA and CS and defining their respective

a
roles, responsibilities & duties
2.2 The CFO and the CS shall attend the meetings of the Board of
a
Directors
3 Audit Committee:
The company shall have an Audit Committee as a sub-committee

3 (i) a
of the Board of Directors
The Audit Committee shall assist the Board of Directors in ensuring

that the financial statements reflect true and fair view of the state
3 (ii) a
of affairs of the company and in ensuring a good monitoring system
within the business
The Audit Committee shall be responsible to the Board of

3 (iii) Directors. The duties of the Audit Committee shall be clearly set a
forth in writing
3.1 Constitution of the Audit Committee:
Constituted
The Audit Committee shall be composed of at least 3 (three)
3.1 (i) a as per BB’s
members
circular
The Board of Directors shall appoint Members of the Audit

3.1 (ii) Committee who shall be Directors of the Company and shall include a
at least 1 (one) Independent Director
All Members of the Audit Committee should be “financially literate”

3.1 (iii) and at least 1 (one) Member shall have accounting or related a
financial management experience
Expiration of the term of service of Audit Committee members

making the number lower than 3(three) and fill up the vacancy(ies)
3.1 (iv) a
by the Board not later than 1 (one) month from the date of
vacancy(ies)
The Company Secretary shall act as the Secretary of the

3.1 (v) a
Committee
Condition
No. (if any)
appropriate column)
Non-
Complied
complied
The quorum of the Audit Committee meeting shall not constitute

3.1 (vi) a
without at least 1 (one) Independent Director
3.2 Chairman of the Audit Committee:
The Board of Directors shall select 1 (one) member of the Audit

3.2 (i) Committee to be Chairman of the Audit Committee, who shall be a
an Independent Director
Shall be
Chairman of the Audit Committee shall remain present in the invited to
3.2 (ii)
Annual General Meeting (AGM) remain
present
3.3 Role of Audit Committee:
3.3 (i) Oversee the financial reporting process a
3.3 (ii) Monitor choice of accounting policies and principles a
3.3 (iii) Monitor Internal Control Risk management process a
3.3 (iv) Oversee hiring and performance of external Auditors a
Review along with the Management, the Annual Financial

3.3 (v) a
Statements before submission to the Board for approval
Review along with the management, the quarterly and half yearly
3.3 (vi) a
financial statements before submission to the board for approval
3.3 (vii) Review the adequacy of internal audit function a
Review statement of significant related party transactions

3.3 (viii) a
submitted by the Management
Review Management Letters/ Letter of Internal Control weakness

3.3 (ix) a
issued by statutory Auditors
Disclosure of Audit Committee about the uses/applications of IPO

funds by major category (capital expenditure, sales and marketing
expenses, working capital, etc), on a quarterly basis, as a part of
3.3 (x) their quarterly declaration of financial results. Further, on an annual N/A
basis, the company shall prepare a statement of funds utilized
for the purposes other than those stated in the offer document/
prospectus
3.4 Reporting of the Audit Committee:
3.4.1 Reporting to the Board of Directors:
Reporting to the Board of Directors on the activities of the Audit

3.4.1 (i) a
Committee
3.4.1(ii)(a) Reporting to Board of Directors on conflicts of interests N/A
Suspected or presumed fraud or irregularity or material defect in

3.4.1(ii)(b) N/A
the internal control system
Suspected infringement of laws, including securities related laws,

3.4.1(ii)(c) N/A
rules and regulations; and
67
Condition
No. (if any)
appropriate column)
Non-
Complied
complied
Any other matter which shall be disclosed to the Board of Directors

3.4.1(ii)(d) N/A
immediately
Reporting to BSEC (if any material impact on the financial condition

3.4.2 & results signed by the Chairman and disclosed in the Annual N/A
Report)
Reporting to the Shareholders on Audit Committee activities,

3.5 which shall be signed by the Chairman and disclosed in the Annual a
Report
External/Statutory Auditors
4 The issuer Company should not engage its external/statutory
Auditors to perform the following services of the Company namely:
4 (i) Appraisal or valuation services or fairness opinions a
4 (ii) Financial information systems design and implementation a
Book-keeping or other services related to the accounting records

4 (iii) a
or Financial Statements
4 (iv) Broker-dealer services a
4 (v) Actuarial services a
4 (vi) Internal audit services; and a
4 (vii) Any other service that the Audit Committee determines a
No partner or employees of the external Audit Firms shall possess

4 (viii) any share of the company they audit at least during the tenure of a
their audit assignment of that company
5 Subsidiary Company:
Provisions relating to the composition of the Board of Directors of

5 (i) the holding company shall be made applicable to the composition a
of the Board of Directors of the subsidiary company
At least 1 (one) Independent Director on the Board of Directors of

5 (ii) the holding company shall be a director on the Board of Directors of a
the subsidiary company
The minutes of the Board meeting of the subsidiary company shall

5 (iii) be placed for review at the following Board meeting of the holding a
company
The minutes of the respective Board meeting of the holding

5 (iv) company shall state that they have reviewed the affairs of the a
subsidiary company also
The Audit Committee of the holding company shall also review the
5 (v) Financial Statements, in particular the investments made by the a
subsidiary company
Condition
No. (if any)
appropriate column)
Non-
Complied
complied
6 Duties of Chief Executive Officer (CEO) and Chief Financial Officer (CFO):
The CEO and CFO shall certify to the Board that they have reviewed
6 (i) Financial Statements for the year and that to the best of their a
knowledge and belief
These statements do not contain any materially untrue statement

6 (i) (a) or omit any material fact or contain statements that might be a
misleading
These statements together present a true and fair view of the

6 (i) (b) company’s affairs and are in compliance with existing accounting a
standards and applicable laws
There are, to the best of knowledge and belief, no transactions

6 (ii) entered into by the company during the year which are fraudulent, a
illegal or violation of the company’s code of conduct
7 Reporting and Compliance of Corporate Governance:
Obtaining certificate from a practicing Professional Accountant/

Secretary regarding compliance of conditions of Corporate
7 (i) a
Governance Guidelines of the BSEC and include in the Annual
Report
Directors’ statement in the directors’ report whether the company

7 (ii) a
has complied with these conditions.
69
International Finance Investment and Commerce Bank Limited
Head Office : IFIC Tower, 61 Purana Paltan, GPO Box: 2229, Dhaka-1000, Bangladesh
Tel: 9563020, IP Phone No. : 09666716250 (Hunting), Fax: 880-2- 9554102, Swift: IFIC BD DH
E-mail: [email protected] Website: www.ificbank.com.bd
CEO and CFO’s Declaration to the Board
Date: 4 April 2018
The Board of Directors

IFIC Bank Limited
Head Office
Dhaka
Subject: Certification of Managing Director & CEO and Chief Financial Officer (CFO) to the Board.
As per BSEC Notification Number SEC/CMRRCD/2006-158/134/Admin/44, dated 7 August 2012, we the

undersigned do hereby certify that:
(i) We have reviewed financial statements for the year ended 31 December 2017 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 together present a 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 violation of the company’s code of conduct.

Chief Financial Officer Managing Director & CEO
DIRECTORS’
DIRECTORS’
71
MANAGEMENT
DISCUSSION
AND ANALYSIS
DIRECTORS’
Management Discussion and Analysis
IFIC Bank Limited has passed a successful year liquidity to support the demand of the customers
of 2017 performing a remarkable achievement in as well as to maintain the minimum requirements of
terms of business growth, new business initiatives Bangladesh Bank.
and implementation which are strongly underpinned Investments
by its efforts centered on achieving highest level Total investments increased by 10.5% to BDT
of customer service excellence, promoting good 27,858 million at 31 December 2017 from BDT
governance, emphasizing financial and operational 25,205 million at 31 December 2016 primarily due
integrity and sustainable banking operations. to increase in investment in government securities
Considering the macro economic scenario of the by BDT 3,189 million; which included increment of
year 2017, the Bank moved for balanced expansion treasury bills and Bangladesh Bank bills of BDT 916
of its business and also concentrated on strategic million and BDT 2,699 million respectively.
business decision, reform and restructuring the
processes and policies. Loans and advances
In the year 2017 Bank’s lending portfolio grew by
The management focuses on the prudent decision 30.7% and reached at BDT 179,264 million from BDT
at the right time which has ultimately maximized the 137,118 million of 2016.
bottom line of operating results. The Bank reviewed
all the segmental performance of the bank from
179,264
analytical point of view which are as follows: Loans and Advances
137,118
123,269
Financial Review
102,282
Financial position of the bank – based on separate 84,110
BDT in million
financial statements
Despite the tough economic environment, IFIC has
managed the healthy growth in its balance sheet
during the year 2017. At the end of year 2017 total
assets of the bank has increased by 28.5% vis-à-
vis 10.5% of year 2016. A summary position of total
2013 2014 2015 2016 2017
assets of the bank are furnish below:
BDT in million
The bank follows a policy of portfolio diversification
Particulars 2017 2016 Growth and evaluates its total financing in a particular sector
Cash & Cash Equivalents 29,932 23,076 29.7% for sustainable growth in the balance sheet. The
25,205 10.5%
Bank’s Credit Risk Management Division and Risk
Investments 27,858
Management Division (RMD) monitors all major
Loans and advances 179,264 137,118 30.7% sectors of the economy and specifically tracks
Fixed assets 3,528 3,488 1.2% sectors in which the Bank has loans outstanding.
Other assets 12,666 8,164 55.1% The bank seeks to respond to economic weakness
through active portfolio management, by restricting
Total assets 253,249 197,051 28.5% exposure to weak sectors and increasing exposure
to the segments that are growing and sustainable.
Cash and cash equivalents
In line with that the bank focus on increasing the
Cash and cash equivalents includes cash in hand
mortgage backed small ticket home loan under
and balances with Bangladesh Bank and its agent
retail segment. At the end of year 2017 the Bank
banks, balance with ATM, balance with other banks
recorded total home loan at BDT 26,209 million
and financial institutions and money at call on
compared to BDT 12,565 million at the end of year
short notice. Cash and cash equivalents increased
2016 with posted 108.6% growth over last year. As
to BDT 29,932 million at 31 December 2017 from
a result mortgage backed home loan mix under retail
BDT 23,076 million at 31 December 2016 mainly
segment to total lending portfolio stood at 14.6%
for increase the balances with Bangladesh Bank,
compared to 9.2% of last year. On the other side
balance held with other bank & FIs and overnight
corporate lending portfolio mix reduced to 65.7% at
placement. This growth is aligned with the business
the end of year 2017 opposed to 66.1% of year 2016.
growth which is inevitable to maintain sufficient
MANAGEMENT DISCUSSION
73
AND ANALYSIS Annual Report 2017
BDT in million BDT in million
Particulars 2017 Mix 2016 Growth Particulars 2017 2016 Growth

Corporate 114,269 63.7% 86,839 31.6% Sub-standard 2,841 1,750 62.3%
SME 28,690 16.0% 28,068 2.2% Doubtful 521 467 11.7%
Retail-Mortgage 26,209 14.6% 12,565 108.6% Bad & Loss 8,116 5,034 61.2%
Retail-others 10,096 5.6% 9,646 4.7% Gross NPL 11,478 7,251 58.3%
Total 179,264 100.0% 137,118 30.7% Provision 3,594 2,355 52.6%
Interest suspense 1,721 951 81.0%
The following diagram demonstrates, at the date
indicated, the composition of the Bank’s gross loans NPL coverage 5,315 3,306 60.8%
and advances: Net NPL 6,163 3,945 56.2%
NPL coverage ratio 46.3% 45.6% 0.7%
Loan Portfolio Composition (2017)
Fixed Assets
5.6% Fixed Assets includes land, building & premises,
computer & equipment, furniture and fixtures etc.
14.6%
Corporate and it increased to BDT 3,528 million at 31 December
2017 from BDT 3,488 million at 31 December 2016
SME primarily due to expansion of branch network and
Retail-Mortgage fusion banking system.
16.0%
Retail-others Other Assets
Other assets includes suspense accounts, advance
63.7% deposits & prepayment, receivable against paid on
Shanchaya Patra, advance income tax, deferred
tax asset, accrued interest receivable, investment
in subsidiaries & associates, non-banking assets,
Quality of portfolio
stationery and stamps etc. Other assets increased
The Bank classifies its assets as performing and by BDT 4,502 million in 2017 compared to year 2016
non-performing in accordance with Bangladesh mainly for increase of advance income tax. Total
Bank’s guidelines. At the end of year 2017, the Bank’s advance tax has increased compared to last year
NPL ratio stood at 6.4% opposed to 5.3% at the end mainly for prior years’ adjustment as up to year 2016
of year 2016. NPL ratio increased by 1.1% over prior the advance income tax was shown in net basis i.e.
year mainly for downgrade of three large accounts after setting off provision for tax and the same has
based on objective and qualitative criteria. However, been presented in gross basis in the year 2017.
the bank made well coverage against such NPL
Liabilities
portfolio to mitigate the credit risk. At the end of the
The following table demonstrates, at the date
year 2017, the Bank has maintained total provision
indicated, the summarized position of liabilities and
of BDT 5,310 million and kept interest suspense
shareholders’ equity:
BDT 4,953 million against gross lending portfolio.
BDT in million
At the end of year 2017 net NPL ratio of the bank
stood at 3.4% with coverage of BDT 5,315 million Particulars 2017 2016 Growth
representing 46.3% of total NPL. The Bank has a Borrowings 8,474 5,827 45.4%
dedicated division for strong monitoring the NPL
accounts this division is closely monitoring the NPL Subordinated debt 3,500 3,500 0.0%
portfolio and work together with different branches Deposits 200,206 160,155 25.0%
and bank legal team. The effort will continue with the
Other liabilities 20,531 14,728 39.4%
aim of reducing the NPL further in 2018.
Total liabilities 232,710 184,210 26.3%
The following table demonstrates, at the date
indicated, information regarding the Bank’s non- Paid up capital 11,953 5,638 112.0%
performing loans and advances: Reserve and suplus 8,586 7,202 19.2%
Total shareholders’ 20,539 12,840 60.0%
equity (SE)
Total liabilities and SE 253,249 197,051 28.5%
74 Annual Report 2017 AND ANALYSIS
Borrowings
Borrowings from other banks, financial Institutions Deposits
200,206
and Bangladesh Bank. At the end of year 2017 total
160,155
borrowings stands at BDT 8,474 million compared
146,820
to BDT 5,827 million at 31 December 2016 which is
129,746
110,464
increased by BDT 2,647 million mainly for borrowing
BDT in million
from Bangladesh Bank under different refinancing
schemes namely EDF, SME & LTFF and borrowings
from outside Bangladesh (Nepal Bangladesh Bank
Ltd. Nepal and SCB, Singapore) which were used for
Off-shore Banking unit of the Bank.
Subordinated Bond
The Bank with prior consent of Bangladesh 2013 2014 2015 2016 2017
Securities and Exchange Commission (vide letter
no. BSEC/CI/DS-32/2015/644 dated 28 December
2015) and Bangladesh Bank (vide letter no. BRPD Other Liabilities
(BFIS) 661/18B (P)/2016-938 dated 08 February Other liabilities mainly includes provision for loans
2016 and BRPD (BFIS) 661/18B (P)/2016-2475 and advances, provision for taxes, interest suspense
dated 17 April 2016) issued 07 (seven) years Non- and other operational liabilities. Other liabilities
Convertible Coupon Bearing Subordinated Bonds balance stands at BDT 20,531 million at 31 December
in the 2016. Subordinated Bond is considered as a 2017 from BDT 14,728 million at 31 December 2016
part of eligible capital under Tier-II as per Basel-III. mainly due to increase in specific Provision on loan
The interest rate of the Bond is reference Rate + & advances, Provision for taxation and interest
4.8% margin, where reference rate is the latest 182 suspense accounts. Provision for tax increased by
days Bangladesh Govt. Treasury bill rate. The issued BDT 3,574 million mainly for prior years’ adjustment
instrument is un-secured, non-convertible in nature as discussed in the section of other assets.
and will be redeemed at 20.0% of its face value each Shareholders’ Equity
year which will start at the end of 3rd year. Bank objective is managing and maintain its capital at
Deposits appropriate levels to support the business strategy
Deposit includes different types of deposits and meet regulatory requirements. A growth of
including bills payable. Following table demonstrates, 59.9% took the shareholders’ fund to BDT 20,539
at the dates indicated, the principal components of million compared to BDT 12,840 million in the
Deposits and other accounts: preceding year. This primarily growth mainly driven
BDT in million by accretion to Paid up capital at 112.0% through
issuance of 1R:1 rights share issue to our valued
Particulars 2017 2016 Growth shareholders amounting to BDT 5,638 million in the
Current deposits 30,668 20,063 52.9% year 2017 as well as issuance of stock dividend at
12.0% for the year 2016. On the other side statutory
Bills payble 2,238 2,076 7.8%
reserve increased by 10.2% due to transfer 20.0% of
Savings bank deposits 27,058 27,886 -3.0% profit before tax of the year 2017 and the impact of
Fixed deposits 140,241 110,131 27.3% retain earnings because of surplus in the profit and
loss account for the year 2017.
Total Deposits 200,206 160,155 25.0%
Deposits increased by 25.0%, BDT 200,206 million Shareholders' Fund 2017

at 31 December 2017 from BDT 160,155 million
at 31 December 2016. This growth was largely 15%
driven by Bank’s fixed deposits, which amounting 1%
to BDT 30,110 million in 2017 as bank has given
more emphasis on long term liquidity rather than
short term. Simultaneously the effort of the Bank 25%
59%
in developing and offering flexible and customized
products specially IFIC Aamar Account that cater
to the need of customers have helped to achieve
the deposit growth of the bank. At the end of 2017 Paid-up Capital Statutory Reserve
total deposit against Aamar Account stood at BDT
General Reserve Retained Earnings
5,839 million compared to BDT 1,816 million which
demonstrated growth of 221.5%.
75
Rights Share Utilization Particulars 2017 2016 Growth
To meet the capital adequacy and to strengthen the
Required CAR 11.25% 10.625% 0.6%
capital base of the Bank as per Basel – III, the Bank
issued rights shares at the ratio of 1R:1 to raise its CAR maintained 12.57% 11.250% 1.3%
paid-up capital. In compliance with all regulatory Surplus/(Short) 1.32% 0.62% 0.7%
requirements, Bank declared record date on 17 April
2017 and fixed the subscriptions period from 31 May As per Basel – III each commercial bank operated in
2017 to 29 June 2017 for collection of rights share Bangladesh has to maintain total capital at 11.875%
proceeds. Bank credited the Rights share to the in 2018 and 12.50% from the year 2019 and onward.
shareholders’ BO Accounts through CDBL on 19 July The information displayed above shows that the
2017. At the end of year 2017 total paid up capital of Bank is able to meet Basel III capital requirements
the bank stand at BDT 11,953 million after considering with Capital to Risk-weighted Asset Ratio (CRAR).
the rights issue which will facilitate the long-term
business growth of the Bank. As per approval of Internal Assessment of Capital
BSEC and implementation schedule contained in the The capital management framework of the Bank
Rights Share Offer Document, the Bank utilized full includes a comprehensive Internal Capital Adequacy
proceeds of Rights Share amounting to BDT 5,638 Assessment Process (ICAAP) conducted annually,
million as per following manner: which determines the adequate level of capitalization
necessary to meet regulatory requirements and current
and future business needs, including under stressed
Rights Share Utilization scenarios. The ICAAP is formulated at standalone
bank level. This encompasses capital planning for a
638 m
five year time horizon, identification and measurement
of material risks and the relationship between risk
1,000 m and capital. The capital management framework is
complemented by the risk management framework,
which includes a comprehensive assessment of
4,000 m material risks. Stress testing, which is a key aspect
of the ICAAP and the risk management framework,
Term Loan Continuous Loan Demand Loan provides an insight on the impact of extreme but
plausible scenarios on the Bank’s risk profile and
capital position. Based on the Bangladesh Bank issued
Capital Adequacy Under Basel-III stress testing framework, the Bank conducts stress
The Bank required to maintain minimum regulatory tests on various portfolios and assess the impact on
capital at 11.25% at the end of year 2017 as per the capital ratios and the adequacy of capital buffers
Basel–III out of which minimum Tier-1 capital of for current and future periods. The Bank periodically
5.75% including 1.25% capital conversation buffer. assess and refines its stress tests in effort to ensure
However, Bank maintained total regulatory capital of that the stress scenarios capture material risk as well
12.57% at the end of year 2017 against the required as reflect possible extreme market moves that could
capital including minimum Tier-1 capital of 9.84%. arise as a result of market conditions. The business
As per Basel III guidelines of Bangladesh Bank, the and capital plans and the stress testing results of the
Bank follows the standardized approach (on the group entities are integrated into the ICAAP.
basis of ECAI’s assessment and specific risk weight
by Bangladesh Bank) for measurement of market Base on the ICAAP, the Bank determines the level of
risk and basic indicator approach for measurement capital that needs to be maintained to the risk under
of operation risk. Details regulatory capital position SRP e.g. residual risk, concentration risk, interest
of the Bank as at reporting date are as follows: rate risk in the banking book, liquidity risk, reputation
risk, strategic risk, settlement risk, appraisal of
BDT in million core risk management practice, environmental and
Particulars 2017 2016 Growth climate change risk as well as other material risks by
considering the following in an integrated manner:
Paid-up capital 11,953 5,638 112.0%
- strategic focus, business plan and growth
Reserve & Surplus 6,922 5,971 15.9%
objectives;
Tier 1 Capital 18,875 11,609 62.6%
- regulatory capital requirement as per
Tier 2 Capital 5,239 5,318 -1.5% Bangladesh Bank guidelines;
Capital Maintained 24,114 16,928 42.5% - assessment of material risks and impact of
Required Capital 21,574 15,993 34.9% stress testing;
Surplus/(Short) 2,539 935 171.7% - perception of credit rating agencies,
shareholders and investors;
- future strategy with regard to investments or Interest Expenses
divestments in subsidiaries; and In 2017 total interest expenses stood at BDT 9,434
million vis-à-vis BDT 8,182 million of year 2016.
- evaluation of options to raise capital from
Interest expenses increased by 15.3% over prior
domestic and overseas markets, as permitted by
year mainly for 25.0% growth on deposit over last
Bangladesh from time to time.
year. However, bank managed its cost of fund and
Financial performance of the bank – based on able to keep remain unchanged like prior year. At the
separate financial statements end of year 2017 cost of fund reached at 4.2% vis-à-
Despite the challenging economic environment, vis 4.2% of year 2016.
constrained the interest margins the bank managed
the healthy financial results in 2017. A better Interest Expense
reflection of financial performance of IFIC an in-
9,434
depth financial analysis is given below:
8,907
BDT in million
BDT in million
8,494
8,467
Particulars 2017 2016 Growth
8,182
Interest income 14,924 12,557 18.9%
Interest expense 9,434 8,182 15.3%
Net Interest Income (NII) 5,490 4,375 25.5%
Inv. & Non-interest Income 4,272 4,111 3.9% 2013 2014 2015 2016 2017
Operating Revenue 9,763 8,486 15.0%

Operating Expense 5,348 5,066 5.6% Net Interest Income - NII
With the positive growth of lending book and cost
Operating profit 4,414 3,420 29.1% of fund remained same as explained in previous
Prov. for Loans and Inv. 2,038 1,336 52.5% paragraphs, in 2017 NII increased to BDT 5,490
million from BDT 4,375 million of year 2016 with a
PBT 2,377 2,084 14.1% healthy growth of 25.5% over last year.
Current Tax 750 700 7.1%
Deferred tax (441) 170 -360.2%
5,490
Net Interest Income
Net Profit after Tax 2,068 1,214 70.3%
4,375
3,746
Interest Income
3,392
BDT in million
The total interest income of the bank has increased

2,617
to BDT 14,924 million from BDT 12,557 million with a

remarkable growth of 18.9% in 2017 due to increase
the lending book by 30.7% in Y2017 compare to
11.2% in Y2016. The portfolio growth led to increase
the interest income and this portfolio growth was
possible because of our high level of customer
service, product innovation, customized solutions 2013 2014 2015 2016 2017
and the continuous effort of the workforces.
Investment and Non-Interest Income

Interest Income
The following table demonstrates, for the period
14,924
indicated, the principal components of non-interest

12,557
12,653
11,858
income:
11,111
BDT in million
BDT in million

Investment income 2,071 2,077 -0.3%
Fees & Commission 1,667 1,478 12.8%
Other operating income 534 556 -3.9%
2013 2014 2015 2016 2017
Total non-interest income 4,272 4,111 3.9%
77
of the bank. However, in 2017 office rent, postage
Fees & Commission
& communication and depreciation expenses has
reduced significantly compared to year 2016 even
1,667
1,478
1,457
after increased the branch network of the Bank. Due
1,328
1,235
to marginal growth of overall operating expenses,
BDT in million
total cost to income ratio of the Bank reduced to

54.8% from 59.7% of last year.
Operating Expenses
5,348
5,066
4,423
4,391
2013 2014 2015 2016 2017
3,581
Total investment and non-interest income shows a
BDT in million
positive growth at 3.9% compared to last year mainly
for fees & commission.
Total Operating Revenue
Though the remarkable growth of NII, at the end of
year 2017 total operational revenue reached at BDT 2013 2014 2015 2016 2017
9,763 million opposed to BDT 8,486 million with a
moderate growth of 15.0%.
Cost to Income Ratio
Operating Revenue
59.7
9,763
8,486
8,037
58.2
7,595
6,528
BDT in million
In %
54.9 54.6 54.8
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Operating Expenses Provision for Loans & Investment

Operating expenses includes the followings: The following table demonstrates, for the periods
BDT in million indicated, the components of provision kept for
loans, investments and other assets:
BDT in million
Salaries & allowances 2,593 2,528 2.5%
Rent, taxes & insurance etc. 688 691 -0.4%
Provision for loans and 2,125 1,260 68.6%
Postage, telecommunication etc. 76 92 -17.0%
advances
Stationery & advertisement etc. 433 266 63.0%
Provision for investments (106) 52 -304.9%
Depreciation and repairs 492 554 -11.1%
Other Provisions 20 24 -19.1%
Other expenses 1,066 935 14.0%
Total Provision 2,038 1,336 52.5%
Total operating expenses 5,348 5,066 5.6%
Provisions are made by the Bank on its lending
During the Y2017, the Bank incurred total operating portfolio as per prescribed category and rates
expenses of BDT 5,348 million vis-à-vis BDT directed by Bangladesh Bank which are standard,
5,066 million of the Y2016 with a very marginal special mention accounts, sub-standard, doubtful
growth of 5.6% over last year. The operating and bad & loss. In 2017 Bank made BDT 2,038 million
expense is increased by 5.6% due to increase of provision on its lending portfolio, investment and
the advertisement & publicity and CSR & Donation other assets opposed to BDT 1,336 million of year
expenses. These expenses were increased 2016. Provision on lending portfolio, investment and
compared to last year mainly for profiling IFIC’s other assets increased by 52.5% mainly for down
brand name in the market, increase brand visibility grade of few lending accounts as well as increase of
and promote the different products and services the overall loans & advances.
Provision for taxation over the previous year which is mainly for higher level
Current tax: At the end of year 2017 total current of NII, lower level of current tax provision through using
tax expenses of the bank stood at BDT 750 million prior years’ surplus provision, increase of the deferred
vis-à-vis BDT 700 million of prior year. Current tax tax income. This growth reflects the enhanced internal
provision seems lower level compared to usual capital generation of the bank. The key factors behind
tax provision as bank calculated current year tax the results were growth in the lending book and efficient
expenses after partial utilization of prior year’s management of bank resources.
surplus provision of tax. This surplus tax provision Following the growth in profits, bank’s profitability ratios
has been arisen mainly from the settled down of have also improved compared to the previous year. This
number of reference applications in 2017 relating to year the Bank’s return on assets rose to 0.9% from 0.7%
different income years which were long pending with and return on equity rose to 12.5% from 10.0%.
the honorable High Court.
Deferred tax: Bangladesh Bank, through its BRPD Return on Equity
Circular dated 21 December 2011, instructed the
15.98
15.66
banks to create deferred tax liability (DTL) and
12.39
assets (DTA), as a matter of prudence. In accordance
with these guidelines, the bank created a DTL for
9.91
temporary difference between carrying value and
7.96
In %
tax base of fixed assets outstanding at 31 December
2017 and DTA for temporary difference between
carrying value and tax base of provision for loans and
advances. In 2017 bank accounted for deferred tax
income of BDT 441 million vis-à-vis BDT 170 million
expense of year 2016. 2013 2014 2015 2016 2017
Profitability Return on Assets

At the end of Y2017 profit before tax of the Bank stood
at BDT 2,377 million vis-à-vis BDT 2,084 million of the
1.09
1.07
prior year with recorded 14.1% growth compare to the
0.92
year of 2016. The Bank achieved net profit after tax of
BDT 2,068 million in the year 2017 with a 70.3% increase
0.65
0.53
Profit Before Tax
In %
2,708
2,677
2,377
2,084
1,615
BDT in million
2013 2014 2015 2016 2017
Based on consolidated financial statements

The consolidated profit after tax including the results
of operations of the Bank’s subsidiaries reached to
BDT 2,127 million in the year 2017 from BDT 1,583
2013 2014 2015 2016 2017 million in the year 2016 which is 34.4% higher than
the prior year mainly for higher level of profit of IFIC
and profit after tax of IFIC Securities which increased
Profit After Tax to BDT 39.75 million in the year 2017 from BDT 2.87
million in the year 2016.
2,068
Net profit after tax of IFIC Money Transfer (UK)

1,545
Limited was (BDT 6.11) million in the year 2017 as

1,346
BDT in million
1,214
against BDT (BDT 7.19) million in the year 2016.

BDT in million
887

IFIC Securities Ltd. 39.7 2.9 1285.4%
IFIC Money Transfer (UK) (6.1) (7.2) 15.0%
2013 2014 2015 2016 2017 Limited
79
Value Added Statement
For the year ended December 31, 2017
The Value Added Statement shows the total value

created by the bank and how it was distributed to 2017
meet certain obligations and the portion retained for
4%
the continued operation and expansion of its business. 11%
15%
4%
To Government
To Employees & Directors
To Depositors and Suppliers
To Shareholders
Retained in the Business
65%
2016
7%
8%
17%
4%
To Government
To Employees & Directors
To Depositors and Suppliers
To Shareholders
Retained in the Business
63%
Market Value Added Statement (MVA)

MVA reflects IFIC’s performance evaluated by
the capital market through its share price. It’s the Market Value Added
difference between the current market value of
the Bank’s shares and the capital contributed by 30,000
shareholders. A high MVA is a better indication of 21,515
performance and it shows that the bank has created 20,000
substantial wealth for its shareholders. MVA for the 11,953 11,784
10,000 5,638
year ended 31 December 2017 and 2016 of the bank
is as follows: 0
2017 2016
Number/BDT in million
Particulars 2017 2016 Market value Book value
Number of shares 1,195 564

Market value 21,515 11,784
Book value 11,953 5,638
MVA 9,562 6,145
Economic Value Added (EVA) Statement
“Economic Value-Added is the surplus generated by Particulars 2017 2016
an entity after meeting an equitable charge towards
its shareholders. It is the post-tax return on capital Net operating profit 4,414 3,420
employed (adjusted for the tax shield on debt) less Provision for taxes (309) (870)
the cost of capital employed. Bank that earns higher Net operating profit after tax 4,105 2,550
returns than cost of capital, creates value, and Bank
that earns lower returns than cost of capital are Average cost of equity* 8.9% 9.0%
deemed harmful for shareholder value. The aim of Cost of average capital 2,016 1,585
EVA is to provide management with a measure of empolyed
their success in increasing shareholder’s wealth: a Economic Value Added (EVA) 2,090 965
better measure than profit of how much the company
had made for shareholders” Capital employed
Shareholders’ equity 20,539 12,840
EVA has been calculated by the following formula:
Accumulated provision 6,598 5,453
EVA=Net operating profit – taxes – cost of average
capital employed Total capital employed 27,137 18,293
Average capital employed 22,715 17,554
* Weighted average rate of 10 years T-bond issued by Govt.
plus 2.0% risk premium.
DuPont Analysis
DuPont analysis is an approach to decomposing
return on equity for better understanding about Total
which factor contributed most to the RoE and which Asset
factor caused the RoE to move. For broader analysis, Turnover
Bank used five factors model that covers Net Profit
Margin, Total Asset Turnover and Financial Leverage.
Particulars 2017 2016

Net profit margin 10.8% 7.3%
Return
Total asset turnover 0.1 0.1
on
Financial Ieverage 12.3 15.3
Equity
Return on Equity (RoE) 10.1% 9.5%
(RoE)
Component of Net Profit 2017 2016 Net Profit Financial
Margin Margin Leverage
Operating profit margin 23.0% 20.5%
Effect of non-operating Items 53.8% 60.9%
Tax effect 87.0% 58.0%
Human Capital
We believe in harnessing the full potential of our reward, employee engagement programs as well as
people as a critical driver of our business success providing supports for employee health care.
in delivering a superior customer experience. Our During the year 2017, IFIC has restructured
purpose, vision and principles guide our efforts to compensation and benefit policy to attract, retain and
create vibrant and congenial work environment. motivate the best resources. The recruitment process
Current and future trends, ranging from digitalization was re-engineered to ensure better intake. At IFIC, our
to working with a multi-generational workforce are goal is to ensure that our people are motivated, inspired
influencing how we shape our people, leadership and committed to deliver outstanding performance
and engagement strategies. The key aspects of consistently. We deeply believe that in order to achieve
managing human capital are HR development & this goal, we need to provide them a great place to
talent management, performance management and
HUMAN CAPITAL Annual Report 2017 81

work, develop their capabilities, empower them and people in the right position at the right time. IFIC
appropriately recognize their contribution. HR determines our future HR requirements through
HR Development & Talent Management continuous consultation with other departments
At IFIC Bank, we believe that our employees must and evaluation of jobs which ultimately assist in
be equipped with all the necessary skills to meet talent acquisition and talent development including
the ever-changing demands of this fast-faced succession planning. Moreover, best employees are
competitive industry. Therefore, we aim to create a selected for the functional positions at Branches and
culture of continuous development to enable them Divisions, Head Office through Internal Job Posting
to grow and succeed throughout their careers. Circular round the year.
Training and development plans are designed and Our objectives always remain to recruit dynamic
implemented on regular basis to ensure appropriate people through our multi-step merit-based
employee knowledge and skills for performing recruitment and selection process whose caliber
current jobs as well as future responsibilities. and capabilities are best suited for the job. This
In 2017, 3394 participants attended in 182 Training enables us to create more career opportunities for
Programs on different areas of Banking, Finance, our people and enhances both lateral and upward
Customer Service, IT and Leadership which is mobility in our organization.
surely a landmark in the training arena among other Performance Management & Reward
commercial banks in the industry. Our employees’ performances are reviewed
As part of succession planning, we arrange leadership annually against their set KPIs which are linked to
programs with distinguished trainers from home financial objective of the Bank. The performance
and abroad. As a corporate member of Malaysian management process emphasizes on employees
Institute of Management (MIM) we are continuing performance, growth as well as identifying their
leadership program with them for last 04 years. learning and career development needs. As a part of
Through intensive training we have created a pool of this, our employees are also encouraged to work on
Coaches & Mentors in the organization who conduct areas where there is scope of improvement through
various leadership programs for our potential branch constructive feedback and dialogue. Pay package
managers or upcoming departmental heads. and other rewards are highly linked to performance
rating of an employee which play critical role to
Besides the in house and customized training identify real performer in the Bank.
programs, employees of our bank are also sent
to the training programs arranged by BBTA, BAB Additionally, this process helps us to identify
Research & Training Centre, BIBM and other reputed employees with high potentials for succession-
local Training Institutes. planning and also helps us in placing employees with
different roles and assignments. From the year 2018,
Management Trainee Development Programs and Bank has taken initiative to evaluate employee’s
Induction Programs for other new joiners were performance on quarterly basis through giving
conducted. Both on the job and off the job training continuous feedback to employees which will enhance
programs followed by case presentation vis-a-vis employee’s productivity contributing to profitability
written examinations have been conducted to make and long term sustainable growth of the Bank.
the training session more effective.
Employee Engagement Programs and Awards
A good number of participants (53) have been Our employee engagement activities are aimed at
sent abroad for attending foreign training (32) on enhancing our employees commitment and sense
Leadership Development, Strategic Management, of belongingness towards the company. Meritorious
Credit, Trade Processing, IT and other related areas Children Award, Pohela Boishakh, Welcoming New
in Singapore, India, Malaysia and Thailand. Born Baby, Hemonto Sondhya and Pitha Utshob are
We also ensured training on compliance issues some of the events that are arranged and celebrated
such as Money Laundering Prevention Act-2012 & with the members of IFIC family.
Amendment Act-2015, Anti Terrorism Act-2009 Health and Work-Life Balance
& Amendment Act-2013, Integrated Supervision We believe that healthy employees will remain
System (ISS), Corresponding Banking Financial sustainably engaged and productive. To ensure
Crime Compliance Academy covering all branches health and well being of our people, IFIC Bank
and Head Office. Besides these, some general provides insurance facilities to employees and
programs were also conducted on Soft Skill equips Branches and Head Office with modern
Development of relevant desk officials of IT, HR and safety measures. Likewise, Management of IFIC
Finance & Accounts Division. provides Earned Leave, Maternity Leave and Causal
Human Resource Planning Leave to the employee to maintain work-life balance.
The primary goal of our human resource Human Resources Accounting (HRA)
management is to ensure that we have the right The aim of HR accounting is to depict the potential
82 Annual Report 2017 HUMAN CAPITAL

of the employee in monetary terms which mainly management personnel to monitor and use human
help in decision making of ascertaining how much resources effectively. It also provides valuable
investment IFIC has made on its employees and information to the investors interested in making
how much return it can expect from this investment. long term investments in service sector companies.
It furnishes cost/value information for making In line with the concept, per employee cost and per
management decision about acquiring, allocating, employee profit are being considered in using human
developing and maintaining human resources resources effectively.
in order to attain cost effectiveness. This allows
Branding and Promotional Activities

IFIC Bank undertook sustained promotional
activities to create awareness about the brand and AvBGdAvBwm
products in the year 2017.

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customers, patrons, stakeholders and employees. An

advertisement on the anniversary day was published
at national dailies, nationwide branches were
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decorated with promotional materials along with www.ificbankbd.com
anniversary cake cutting with valued customers and officials of the bank attended the programme. The
employees. bank celebrated the beginning of Bangla new year
To promote the groundbreaking product IFIC Aamar Pahela Boishakh by organizing various activities
Account, a 360 degree campaign was launched across including an employee event and painting alpona in
all available media (TVC and RDC airing in different front of IFIC Tower.
channels, series of newpaper advertisements in
national and local dailies, billboard advertisements
at different strategic points, digital media
advertisements along with field level activation).
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Different television programmes including Kemon

Budget Chai in NTV, Ekushay Book Mela Sorasori
and Rangtulite Muktijudhdho in Channel i were
www.ificbank.com.bd
Promotional activities for IFIC Home Loan across sponsored by the bank. The Bank also did branding
the media was very successful in 2017. The Bank of the news scroll and a documentary titled “IFIC
received positive response from customers as a Bank Ei Banglaye’ in ATN News to increase the Bank
result of those activities. The bank also promoted its brand visibility.
One Stop Service and a new product IFIC Agami to The Bank also sponsored a good number of events
create awareness about the product and service. including the Police Week 2017 and DMP’s Founding
Anniversary, Victory Day Parade of Bangladesh
Armed Forces, 1st IFIC Bank Golf Tournament at
Ghatail Goft Club (Shaheed Salahuddin Cantonment,
Tangail) and Jazz Festival of Blues Communication.
$Y%*G$Y%ZPfQYJfMYgEf.YgEYZQg:E3Y5 fE% _ ĂƌůǇ^ĞƩůĞŵĞŶƚ*

f.YgEYZG*HVZHZDZEgODfE%_fPZJFY.YHYZRZEJYg<,fMYEF¯YZ¸LP\gKY0
ZH¦YZL=5YEg=fGYE.L¿EfJYHY%MfBg.$BHY
IFIC Bank organized a Pitha Utshab at Gulshan Branch

premises. Top customers, eminent personalities
of the society, honorable shareholders and high
BRANDING AND
83
PROMOTIONAL ACTIVITIES Annual Report 2017
MEDIA HIGHLIGHTS
DIRECTORS’
MEDIA HIGHLIGHTS
DIRECTORS’
85
MEDIA HIGHLIGHTS
DIRECTORS’
SHAREHOLDERS’
INFORMATION
DIRECTORS’
87
Directors’ Shareholding Status
Shareholding of Directors as at 31 December 2017
Sl. Name of the Directors Status Holding in % 2017 2016

1 Mr. Salman F Rahman Chairman 2.00 23,912,781 11,279,614
2 Mr. Anwaruzzaman Chowdhury Independent Director Nil Nil Nil
3 Ms. Rabeya Jamali Independent Director Nil Nil Nil
4 Mr. Jalal Ahmed * Govt. nominated Director
5 Mr. A. R. M. Nazmus Sakib * Govt. nominated Director 32.75 391,444,309 184,643,542
6 Ms. Quamrun Naher Ahmed* Govt. nominated Director
7 Mr. M Shah Alam Sarwar Managing Director & CEO Nil Nil Nil
*Directors nominated by the Ministry of Finance, Govt. of the People’s Republic of Bangladesh against its holding of 32.75% shares
in the Bank.
Distribution of Shareholding
31 December 2017 31 December 2016
Category
No. of Share % Taka No. of Share % Taka
Sponsors 46,911,623 3.92 469,116,230 36,559,051 6.48 365,590,510
Directors 23,912,781 2.00 239,127,810 11,279,614 2.00 112,796,140
Government (Director also) 391,444,309 32.75 3,914,443,090 184,643,542 32.75 1,846,435,420
462,268,713 38.67 4,622,687,130 232,482,207 41.23 2,324,822,070
Institutions 257,334,656 21.53 2,573,346,560 137,249,426 24.34 1,372,494,260
Foreign investors 23,104,033 1.93 231,040,330 3,969,289 0.70 39,692,890
General investors 452,595,040 37.87 4,525,950,400 190,120,985 33.73 1,901,209,850
Total 1,195,302,442 100.00 11,953,024,420 563,821,907 100.00 5,638,219,070
Mr. Salman F Rahman is a Sponsor as well as a Director of the Bank. However his shares are shown against Directors’ Category.
The Government is representing in the Board of the Bank by nominating 03 (three) Directors and as such, Sponsors & Directors are
at present holding 38.67% shares of the Bank.
Shareholding status (%) : 2017 Shareholding status (%) : 2016
Sponsors
3.92 6.48
2.00 2.00
Directors
32.75 Government 33.73

37.87
Institutions 32.75
Foreign
Investors 0.70
1.93
21.53 General
24.34
Investors
SHAREHOLDERS’
88 Annual Report 2017 INFORMATION
Five Years Performance of the Bank
Key Financial Data and Indicators
BDT in million
Particulars 2017 2016 2015 2014 2013
Financial Position Matrix
Authorized capital 20,000 20,000 20,000 20,000 20,000
Paid-up capital 11,953 5,638 5,034 4,377 3,807
Shareholders’ equity 20,539 12,840 11,654 10,628 9,098
Deposits 200,206 160,155 146,820 129,746 110,464
Borrowings 8,474 5,827 7,201 5,621 3,493
Total liabilities 232,710 184,210 166,680 145,711 122,919
Loans and advances 179,264 137,118 123,269 102,282 84,110
Investments 27,858 25,205 28,498 22,845 21,171
Fixed assets 3,528 3,488 3,230 2,929 2,383
Interest earning assets 216,239 166,860 151,499 132,838 109,474
Non-interest earning assets 37,009 30,190 26,835 23,500 22,588
Total assets 253,249 197,051 178,334 156,339 132,062
Total off-balance sheet items 58,620 52,602 47,779 47,824 42,304
Financial Performance Matrix
Interest income 14,924 12,557 12,653 11,858 11,111
Interest expenses 9,434 8,182 8,907 8,467 8,494
Net interest income (NII) 5,490 4,375 3,746 3,392 2,617
Non-interest income 4,272 4,111 4,291 4,204 3,911
Investment income 2,071 2,077 2,375 2,377 2,170
Administrative expenses 5,348 5,066 4,391 4,423 3,581
Operating profit 4,414 3,420 3,646 3,173 2,948
Provision for loans and assets 2,038 1,336 2,031 496 240
Profit before tax 2,377 2,084 1,615 2,677 2,708
Current tax 750 700 950 1,290 1,090
Deferred tax expense/(income) (441) 170 (222) (158) 272
Profit after tax 2,068 1,214 887 1,545 1,346
Trade Business Matrix
Foreign Exchange Business 206,154 208,672 205,923 193,982 183,791
Import 97,908 92,927 87,307 85,326 84,899
Export 88,677 94,410 96,080 89,894 83,118
Remittance 19,569 21,335 22,537 18,762 15,774
Guarantee Business 7,313 7,407 8,687 5,773 6,159
Capital Measure Matrix (under Basel-III)
Risk weighted assets (RWA) 191,773 150,523 117,314 111,574 92,915
Common Equity Tier-1 Capital 18,875 11,609 10,508 9,695 8,324
Admissible Tier-2 Capital 5,239 5,318 1,305 1,613 1,307
Total Regulatory Capital 24,114 16,928 11,813 11,308 9,631
Common Equity Tier-1 to RWA 9.84% 7.71% 8.96% 8.69% 8.96%
Tier-2 Capital to RWA 2.73% 3.53% 1.11% 1.45% 1.41%
Capital to Risk-weighted Asset Ratio (CRAR) 12.57% 11.25% 10.07% 10.14% 10.37%
FIVE YEARS PERFORMANCE OF

89
THE BANK Annual Report 2017
BDT in million
Particulars 2017 2016 2015 2014 2013
Credit Quality Matrix
Non-performing/classified loans (NPLs) 11,478 7,251 7,962 5061 3,168
Provision for loans & advances 5,310 4,138 3,982 3,042 2,432
NPL to total loans & advances 6.40% 5.29% 6.46% 4.95% 3.77%
Share Information Matrix
Number of shares outstanding 1,195.30 563.82 503.41 437.75 380.65
Number of shareholders 44,421 31,569 35,949 44,444 49,196
Market price per share 18.00 20.90 21.20 26.10 34.30
Operating profit per share 3.69 6.07 7.24 7.25 7.74
Earnings per share 2.02 1.38 1.57 3.07 3.07
Dividend (stock) 12.0% 12.0% 12.0% 15.0% 15.0%
Dividend coverage ratio (times) 1.44 1.79 1.47 2.35 2.36
Market capitalization 21,515 11,784 10,672 11,425 13,056
Net asset value (NAV) per share 17.18 22.77 23.15 24.28 24.02
Price earning ratio (times) 8.92 15.18 13.48 8.51 11.16
Profitability Ratio (%)
Return on average assets (RoA) 0.92% 0.65% 0.53% 1.07% 1.09%
Return on average equity (RoE) 12.39% 9.91% 7.96% 15.66% 15.98%
Loans and advances to deposits ratio 85.0% 81.6% 84.0% 78.8% 76.1%
Net interest margin on average earning assets 2.9% 2.7% 2.6% 2.8% 2.6%
Yield on fund 8.7% 8.9% 10.1% 11.1% 12.2%
Cost of fund 4.22% 4.21% 5.32% 5.87% 6.88%
Administrative cost 2.38% 2.70% 2.62% 3.07% 2.90%
Operating margin 1.93% 1.97% 2.18% 2.20% 2.39%
Cost to income ratio 54.78% 59.70% 54.64% 58.23% 54.86%
Operating profit per employee 1.76 1.35 1.46 1.26 1.15
Liquidity Ratio (%)
Cash reserve ratio (CRR) maintained * 6.74% 6.56% 6.44% 6.58% 6.00%
Statutory liquidity ratio (SLR) maintained 15.64% 14.98% 18.36% 16.72% 24.56%
Other information
Number of employees 2,512 2,536 2,489 2,527 2,574
Number of branches 141 134 129 120 112
Number of correspondent banks 475 500 497 471 464
Number of ATMs 88 72 59 50 50
Number of deposit account 819,350 760,634 667,785 544,198 389,592
Number of loan account 36,624 27,968 34,414 33,056 29,315
Average deposit 180,180 153,487 138,283 120,105 101,449
Average borrowings 7,150 6,514 6,411 4,557 2,184
Average loans & advances 158,191 130,193 112,775 93,196 80,635
Average total assets 225,150 187,692 167,336 144,201 123,396
Average earning assets 191,550 159,180 142,168 121,156 101,855
Average equity 16,690 12,247 11,141 9,863 8,426
*CRR in the year 2015, 2014 and 2013 are shown in daily basis.
FIVE YEARS PERFORMANCE OF

90 Annual Report 2017 THE BANK
Five Years Graphical Presentation
Deposits Loans and Advances
179,264
200,206
137,118
160,155
123,269
146,820
129,746
102,282
110,464
BDT in million
BDT in million
84,110
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Total Assets Shareholders' Equity

253,249
20,539
197,051
178,334
156,339
12,840
132,062
BDT in million
BDT in million
11,654
10,628
9,098
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Net Interest Income Non-Interest Income

5,490
4,291
4,272
4,204
4,375
3,746
3,392
4,111
BDT in million
BDT in million
2,617
3,911
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Operating Profit Profit After Tax

4,414
2,068
3,646
3,420
3,173
1,545
2,948
1,346
BDT in million
BDT in million
1,214
887
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
FIVE YEARS
91
GRAPHICAL PRESENTATION Annual Report 2017
Total Regulatory Capital Capital Adequacy Ratio
24,114
11.57
11.25
10.37
10.07
10.14
16,928
BDT in million
11,308
11,813
9,631
In %
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Earnings Per Share Net Asset Value Per Share

3.07
3.07
24.28
24.02
23.15
22.77
17.18
Figure in BDT
2.02
Figure in BDT
1.57
1.38
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Price Earning Ratio Dividend (Stock)

15.18
15.0
15.0
13.48
12.0
12.0
12.0
11.16
8.92
8.51
In Times
In %
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Return on Equity Return on Assets

15.98
15.66
12.39
9.91
7.96
In %
In %
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
FIVE YEARS
92 Annual Report 2017 GRAPHICAL PRESENTATION
Market Price Information
Monthly High, Low & Close price and volume of Company’s shares traded on Dhaka Stock Exchange Ltd. (DSE)
and Chittagong Stock Exchange Ltd. (CSE) during the year 2017:
DSE CSE Total Volume

Month Closing Closing on DSE &
High Low Volume High Low Volume CSE
Price Price
January’17 28.40 20.30 25.00 85,789,515 27.90 20.40 25.10 5,220,563 91,010,078
February’17 25.50 22.80 24.20 25,239,577 25.40 22.40 24.10 1,009,938 26,249,515
March’17 31.50 23.70 31.60 113,939,882 32.10 23.70 31.60 8,820,610 122,760,492
April’17 31.80 17.40 18.60 66,777,412 31.60 17.40 18.80 3,581,246 70,358,658
May’17 19.00 15.50 16.20 23,853,338 18.80 15.70 16.10 2,528,722 26,382,060
June’17 17.80 16.00 17.30 30,000,014 18.00 16.20 17.50 1,062,502 31,062,516
July’17 20.30 17.00 18.60 99,324,587 20.50 17.20 18.50 5,977,588 105,302,175
August’17 21.10 18.50 20.60 243,118,571 21.20 18.50 20.60 16,978,223 260,096,794
September’17 22.00 19.70 20.20 205,850,365 22.00 19.70 20.10 17,994,687 223,845,052
October’17 21.30 17.50 17.90 118,730,637 21.40 17.20 17.90 12,974,671 131,705,308
November’17 20.20 17.90 18.60 74,528,726 20.20 18.00 18.60 8,417,149 82,945,875
December’17 18.80 17.60 18.00 22,350,224 18.80 17.70 18.00 1,888,286 24,238,510
35.00 35.00
30.00 30.00
25.00 25.00
20.00 20.00
15.00 15.00
10.00 10.00
5.00 5.00
0.00 0.00
Jun’17
Feb’17
Sep’17
May’17
Oct’17
Dec’17
Jan’17
Mar’17
Nov’17
Apr’17
Aug’17
Jul’17
Jun’17
Feb’17
Sep’17
May’17
Oct’17
Dec’17
Jan’17
Mar’17
Nov’17
Apr’17
Aug’17
Jul’17
DSE High DSE Low DSE Closing Price CSE High CSE Low CSE Closing Price
DSE Volume CSE Volume

Jan’17 Jan’17
22 m 85 m Feb’17 Feb’17
74 m 2 m 5 m1 m
25 m Mar’17 8m Mar’17
9m
118 m Apr’17 Apr’17
113 m
May’17 4m May’17
13 m
66 m Jun’17 3m Jun’17
Jul’17 1m Jul’17
23 m
Aug’17 6m Aug’17
206 m 30 m
Sep’17 Sep’17
99 m Oct’17 Oct’17
Nov’17 18 m 17 m Nov’17
243 m Dec’17 Dec’17
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93
PRICE INFORMATION Annual Report 2017
Financial Calendar
Although Bank makes all-out effort to observe the below mentioned dates, all the future dates are provisional
and subject to change.
01 April 2018 Compliance under Listing Regulation 19(1)

10 April 2018 Approval of audited Financial Statements for the year ended
31 December 2017
10 April 2018 Disclosure on Price Sensitive Information
10 May 2018 Record Date for 41st Annual General Meeting
03 June 2018 Notice for 41st Annual General Meeting
24 June 2018 41st Annual General Meeting
3rd week of July 2018 12% Stock Dividend distribution for the year 2017
14 May 2018 Announcement of first quarter (Q1) financial results
Last week of July 2018 Announcement of second quarter (Q2) financial results
Last week of October 2018 Announcement of third quarter (Q3) financial results
Other Information
Stock Details
Particulars DSE CSE

Stock Symbol IFIC IFIC
Company Code 11103 22010
Listing Year 1986 1997
Market Category A A
Electronic Share Yes Yes
Face Value (BDT) 10.00 10.00
Market Lot (number) 1 1
Total Number of Securities 1,195,302,442 1,195,302,442
Redressal of Investors’ Complaints

Investors are warmly treated at IFIC. Complaints received from the investors are handled promptly with
utmost care to mitigate/resolve the issues at the earliest.
Availability of Annual Report 2017 and Information about IFIC

Annual Report 2017 and other information about IFIC Bank may be viewed on Bank’s website at www.
ificbank.com.bd. Copies of Annual Report 2017 also submitted to the Bangladesh Securities and Exchange
Commission, Bangladesh Bank, Dhaka Stock Exchange Ltd., Chittagong Stock Exchange Ltd. and the
Registrar of Joint Stock Companies & Firms.
Investors’ Inquiries
All correspondences with regard to share matters and other related issues to be made to the following
address:
The Company Secretary

IFIC Bank Limited
Head Office, ‘IFIC Tower’
61, Purana Paltan, Dhaka-1000
IP Phone No. 09666716250, Ext. 122, Fax No. 02-9554102
FINANCIAL
94 Annual Report 2017 CALENDAR
GLIMPSES OF THE 40TH AGM
DIRECTORS’
95
DIRECTORS’
Market Discipline – Disclosures on Risk Based Capital
(Under Pillar-III of Basel-III Framework)
For the year ended 31 December 2017
Consolidated basis
Background securities dealings and other services as mentioned

in the Memorandum and Articles of Association of
In order to make the Bank’s capital adequacy the company. The operation of the company started
assessment more risk sensitive and to abide by the on 10 March 2011.
international norms and practices, Bangladesh Bank
took the initiative to implement Basel–III framework. IFIC Money Transfer (UK) Limited
Banks in Bangladesh went live under Basel–III since IFIC Money Transfer (UK) Limited was incorporated
01 January 2015. These disclosures under Pillar-III as a private limited company with Companies
of Basel-III are made following ‘Guidelines on Risk House in England and Wales under registration no.
Based Capital Adequacy (RBCA) - Revised Regulatory 07379137 on 16 September 2010. The company
Capital Framework for banks in line with Basel-III’ for is a wholly owned subsidiary of IFIC Bank Limited.
banks. These quantitative and qualitative disclosures IFIC Bank Limited got permission from Bangladesh
are intended to complement the Minimum Capital Bank for opening a fully owned subsidiary in UK.
Requirement (MCR) under Pillar-I and Supervisory IFIC Money Transfer (UK) Limited obtained Money
Review Process (SRP) under Pillar-II of Basel-III. The Laundering registration on 17 January 2011 issued
purpose of these disclosures is to present relevant by HM Customs and Excise. The company got
information on the adequacy of capital in relation to registration from Financial Services Authority (FSA)
overall risk exposures of the Bank so that the market on 16 June 2011 under Payment Services Regulations
participants can assess the position and direction of 2009. The company commenced its operation on
the Bank in making economic decisions. 31 August 2011. The registered office is located at
Ferrari House, 2nd Floor, 102 College Road, Harrow,
A) Scope of Application Middlesex, United Kingdom HAI IES, London, UK.
Qualitative Disclosures Brief Description of the Joint Ventures/ Associates
i. The name of the top corporate entity in the group of the Bank
to which this guidelines applies – Nepal Bangladesh Bank Limited
The Risk Based Capital Adequacy and related Nepal Bangladesh Bank Limited (NBBL) was
disclosures are applicable for “International Finance incorporated in Nepal and registered with Office of
Investment & Commerce Bank Limited” (IFIC Bank Company Registrar (50-050/051, Dated January 14,
Limited) which is the top corporate entity of the 1994) as a public company limited by shares. NBBL
group. was established as a joint venture bank with IFIC
Bank Ltd., Bangladesh. The Bank started its banking
ii. An outline of differences in the basis of
business form 6th June 1994. IFIC’s investment in the
consolidation for accounting and regulatory
share capital of NBBL is 40.91%.
purposes, with a brief description of the entities
within the group a) that are fully consolidated; Oman Exchange LLC
b) that are given a deduction treatment; and c) Oman Exchange LLC (OE), an exchange company
that are neither consolidated nor deducted (e.g. incorporated under the laws of the Sultanate of
where the investment is risk-weighted) – Oman having its registered office is Building no.
4699, Way no. 4567, Hamriya, PO Box 114, Post
Brief Description of the Subsidiaries
code 994, Hey Al Mina, Hamriya, Muscat, Sultanate
IFIC Securities Limited of Oman. It was established in 1985 as a joint venture
IFIC Securities Limited, a fully owned subsidiary between IFIC Bank Limited and Oman Nationals, to
company of IFIC Bank Limited was incorporated facilitate remittance by Bangladeshi wage earners
as a Public limited company in Bangladesh on 2 in Oman. The affairs and business of the company is
November 2010 vide certificate of incorporation run and managed by the Bank under a Management
no. C-87904/10 having registered office at IFIC Contract. IFIC Bank holds 25% shares and the
Tower, 61 Purana Paltan, Dhaka-1000, Bangladesh. balance 75% is held by the Omani sponsors.
It acquired membership of Dhaka Stock Exchange
Limited for brokerage transaction vide Security Brief Description of Off-shore Banking Unit
Exchange Commission certificate no. 3.1/DSE- Off-shore Banking Unit (OBU) is a separate business
192/2009/316 dated 1 January 2009. The main unit of IFIC Bank Limited. Bank obtained permission
objective of the company is to carry on the business for OBU operations from Bangladesh Bank vide
of stock brokers/ dealers in relation to shares and its letter no. BRPD (P-3) 744 (104)/2009-4233
dated 17 November 2009. The unit commenced its
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97
DISCIPLINE Annual Report 2017
operation from 19 May 2010. Presently the Bank has Capital. The CET1 Capital of the bank comprises
01 (one) Off-shore Banking Unit in Bangladesh. The Paid-up Capital, Statutory Reserve, General Reserve
OBU is governed under the rules and regulations of and Retained Earnings. Paid-up Capital of the Bank
Bangladesh Bank. is already above the minimum requirement of BDT
4,000 million as per the directives of Bangladesh
Basis for Consolidation
Bank. In addition, Tier-2 Capital includes General
The quantitative disclosures are made on the basis
Provision, and Revaluation Reserve of Fixed Assets
of consolidated audited financial statements of the
and Securities (up to 50 percent). The Bank issued
bank and its subsidiaries as at and for the year ended
Rights Share totaling BDT 5,638 Million at a ratio of
31 December 2017. The consolidated financial
1R:1 i.e. one right share against one existing share on
statements have been prepared in accordance with
19 July 2017.
Bangladesh Accounting Standards 27: Separate
Financial Statements and Bangladesh Financial Banks are required to maintain a capital conservation
Reporting Standards 10: Consolidated Financial buffer of 1.25% during the year 2017, above the
Statements. The consolidated financial statements regulatory minimum capital requirement of 10%. No
are prepared to a common financial year ended distribution of capital (i.e. paying dividends or bonuses
31 December 2017. All intra-group transactions, in any form) is allowed in case capital level falls within
balances and any unrealized income and expenses the range between 10% to 11.25%. However, the
arising from intra-group transactions are eliminated Bank will be able to conduct business as normal.
in preparing consolidated financial statements. Capital conservation buffer is applicable both at the
Unrealized losses are eliminated in the same way as solo level as well as at the consolidated level. As per
unrealized gain, but only to the extent that there are the Bangladesh Bank instructions contained in BRPD
no evidence of impairment. letter No: BRPD(BFIS)661/14B(P)/2015-18014 dated
24 December 2015, Deferred Tax Assets arising out
iii. Any restrictions, or other major impediments, on
of Specific Provision on Classified Loans is allowable
transfer of funds or regulatory capital within the
to a maximum of 5% as Common Equity Tier-1 Capital
group –
(CET-1) while calculating CET-1 as per Basel III.
During the year one of the associate/joint venture
Non-convertible Subordinated Bond
namely NBBL increased its paid-up capital through
In the year 2016, the Bank issued 07 (seven)
issuance of Rights Share to comply with minimum
years Tier-2 Non-Convertible Coupon Bearing
capital requirement of their Central Bank. IFIC Bank
Subordinated Bonds to several banks. The issued
Limited being one of the sponsor shareholder has
instrument is un-secured, non-convertible in nature
obtained permission to subscribe in the said Rights
and will be redeemed at the end of 3rd, 4th, 5th, 6th and
Issue and necessary remittance has been done as
7th year of maturity at 20% of bond value respectively.
per approval of Bangladesh Bank.
Quantitative Disclosures This subordinated bond has been rated by CRAB as
AA3 (Hyb) in Long Term category with ‘Stable’ outlook
iv. The aggregate amount of surplus capital of valid up to 28 June 2018 which is judged to be of very
issuance subsidiaries (whether deducted or high quality, subject to very low credit risk. A total
subjected to an alternative method) included in interest of BDT 293 Million was paid on 29 May 2017
the capital of the consolidated group – ‘Nil’ in this and 29 November 2017 as second and third semi-
year. annual coupon payment at the rate of 7.94% and
8.82% p.a. respectively.
Quantitative Disclosures
B) Capital structure
ii. The amount of Regulatory capital, with separate
Qualitative Disclosures
disclosure of –
i. Summary information on the terms and conditions
CET1 Capital
of the main features of all capital instruments,
especially in the case of capital instruments BDT in million
eligible for inclusion in CET1, Additional Tier-1 or Particulars Y2017
Tier-2 –
Fully Paid-up Capital 11,953
Under Basel-III capital adequacy framework, total Statutory Reserve 5,125
regulatory capital of a Bank are categorized into
two tiers: (1) Tier-1 Capital (going-concern capital), General Reserve 155
and (2) Tier-2 Capital (gone-concern capital). The Retained Earnings 4,624
Tier-1 Capital is further subdivided into (a) Common Total CET1 Capital [A] 21,856
Equity Tier-1 (CET1) and (b) Additional Tier-1. Total
eligible regulatory capital of IFIC Bank Limited
Additional Tier-1 Capital [B] Nil
consists of partly CET1 Capital and partly Tier-2 Total Tier-1 Capital [C]=A+B 21,856
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98 Annual Report 2017 DISCIPLINE
General Provision 1,716 in comparison to its risk weighted asset’s position
and exploring ways and means to raise capital both
Subordinated Debt 3,500 internally and externally.
Revaluation Reserves as on 31 Dec 2014
(50% of Fixed Assets and Securities) 58 BDT in million
Total Tier-2 Capital [D] 5,274
Particulars Y2017
iii. Regulatory Adjustments/Deductions from ii. Capital requirement for Credit Risk
capital
On-Balance Sheet 17,676
BDT in million
Off-Balance Sheet 2,356
Particulars Y2017
Total 20,032
Goodwill & all other Intangible Assets 275
Deferred tax assets (DTA) 1,268 iii. Capital requirement for Market Risk
Revaluation Reserves for Fixed Interest Rate Related Instruments 21

Assets, Securities & Equity Securities 35 Equities 213
(Phase-in deductions)
Foreign Exchange Position 181
Regulatory Adjustments/Deductions
1,578
from capital [E] Commodities Nil
iv. Total eligible capital [F]=[C]+[D]-[E] 25,553 Total 415
iv. Capital requirement for Operational 1,556
C) Capital Adequacy Risk
i. A summary discussion of the bank’s approach to v. Total capital, CET1 capital, Total Tier-1 capital and
assessing the adequacy of its capital to support Tier-2 capital ratio:
current and future activities –
• For the consolidated group Ratios
According to BB Guidelines, IFIC Bank is assessing
Risk Based Capital Adequacy under Basel-III from Total Capital 13.06%
01 January 2015. Under Basel-III framework the
capital requirement is determined for Credit Risk CET1 Capital 10.39%
and Market Risk under Standardized Approach Total Tier-1 Capital 10.39%
and Operational Risk under Basic Indicator
Approach and summed-up to determine total Risk Total Tier-2 Capital 2.68%
Weighted Assets and thereafter the Minimum • For stand alone Ratios
Capital Requirement (MCR). The Bank assesses the
capital requirement considering the existing size Total Capital 12.57%
of portfolio, concentration of portfolio to different CET1 Capital 9.84%
risk weight groups, asset quality, profit trend etc. on
quarterly rest. The Bank also forecasts the adequacy Total Tier-1 Capital 9.84%
of capital in terms of its capacity of internal capital Total Tier-2 Capital 2.73%
generation, maintaining the size of the portfolio,
asset quality, conducting credit rating of the
vi. Capital Conservation Buffer –
borrowers, segregation of portfolio to different risk
weight groups etc. As per Bangladesh Bank Transitional Arrangements
for implementation of Basel-III, creation of Capital
IFIC Bank has maintained Capital to Risk-weighted
Conservation Buffer (CCB) has been made effective
Asset Ratio (CRAR) of 13.06% as on 31 December
from 1 January 2016, 2017, 2018 and 2019 at 0.625%,
2017, whereas Minimum Capital Requirement
1.25%, 1.875% and 2.50% respectively above the
(MCR) is 11.25% from 01 January 2017 as per BRPD
regulatory minimum capital requirement of 10%. The
circular No.18 dated 21 December 2014. The Bank
minimum total capital plus CCB for the year 2017 is
has thus maintained excess capital of 1.81% above
11.25%.
the minimum requirement of 11.25%. However, the
Bank is continuously evaluating its capital position
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99
vii. Available Capital under Pillar-II Requirement – Mention Account (SMA)”, the prior status of becoming
the loan into impaired/classified/ nonperforming.
BDT in million
Definition of impaired / classified /non-performing
Particulars Y2017 loans and advances are as follows:
Total Eligible Regulatory Capital [A] 25,553 Continuous loan
Minimum Capital Requirement under 19,559 Substandard - If it is past due /overdue for 3 (three)
Pillar 1 [B] months or beyond but less than 6 (six) months;
Capital Conservation Buffer [C] 2,445 Doubtful - If it is past due / overdue for 6 (six) months
or beyond but less than 9 (nine) months;
Minimum Capital Requirement Bad/Loss - If is past due / overdue for 9 (nine) months
including CCB [D=B+C] 22,003 or beyond.
Available Capital for Pillar 2 [E=A - D] 3,549 Demand loan

Substandard - If it remains past due / overdue for 3
(three) months or beyond but not over 6 (six) months
D) Credit Risk from the date of expiry or claim by the Bank or from
the date of creation of forced loan;
Doubtful - If it remains past due / overdue for 6 (six)
i. The general qualitative disclosure requirement months or beyond but not over 9 (nine) months from
with respect to credit risk, including – the date of expiry or claim by the Bank or from the
Definitions of past due and impaired (for accounting date of creation of forced loan;
purposes) Bad/Loss - If it remains past due / overdue for 9 (nine)
As per relevant Bangladesh Bank guidelines, the months or beyond from the date of expiry or claim by
Bank defines the past due and impaired loans and the Bank or from the date of creation of forced loan.
advances for strengthening the credit discipline and
mitigating the credit risk of the Bank. The impaired Fixed Term Loans
loans and advances are defined on the basis of (i) In case of any installment(s) or part of installment(s)
Objective/ Quantitative Criteria and (ii) Qualitative of a Fixed Term Loan is not repaid within the due
judgment. For this purpose, all loans and advances date, the amount of unpaid installment(s) will be
are grouped into 4 (four) categories, namely - (a) termed as ‘past due or overdue installment’. In case
Continuous Loan (b) Demand Loan (c) Fixed Term of Fixed Term Loans: -
Loan and (d) Short-term Agricultural & Micro Credit. Substandard - If the amount of past due installment
Definition of past due/overdue: is equal to or more than the amount of installment(s)
due within 03 (three) months, the entire loan will be
Continuous Loan classified as ‘’Sub-standard’’.
Any Continuous Loan if not repaid/renewed within
the fixed expiry date for repayment or after the Doubtful - If the amount of past due installment is
demand by the bank will be treated as past due/ equal to or more than the amount of installment(s)
overdue from the following day of the expiry date; due within 06 (six) months, the entire loan will be
classified as ‘’Doubtful”.
Demand Loan
Any Demand Loan if not repaid within the fixed Bad/Loss - If the amount of ‘past due installment is
expiry date for repayment or after the demand by equal to or more than the amount of installment(s)
the bank will be treated as past due/overdue from due within 09 (nine) months, the entire loan will be
the following day of the expiry date; classified as ‘’Bad/Loss’’.
Fixed Term Loan In case of any installment (s) or part of installment (s)
In case of any installment(s) or part of installment(s) of a Fixed Term Loan amounting up-to Taka 10 lacs
of a Fixed Term Loan is not repaid within the fixed is not repaid within the due date, the classification is
expiry date, the amount of unpaid installment(s) will as under:
be treated as past due/overdue from the following Substandard - If the amount of past due installment
day of the expiry date. is equal to or more than the amount of installment
Short-term Agricultural and Micro-Credit (s) due within 6 (six) months, the entire loan will be
The Short-term Agricultural and Micro-Credit if not classified as ‘Sub- standard’;
repaid within the fixed expiry date for repayment will be Doubtful - If the amount of past due installment is
considered past due/overdue after six months of the equal to or more than the amount of installment (s)
expiry date. However, a continuous loan, demand loan due within 9 (nine) months, the entire loan will be
or a term loan which will remain overdue for a period of classified as ‘Doubtful’;
02 (two) months or more, will be put into the “Special
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Bad/Loss -If the amount of past due installment is BDT in million
equal to or more than the amount of installment (s)
Particulars Y2017
due within 12 (twelve) months, the entire loan will be
classified as ‘Bad/Loss’. Specific and general provisions
Short-term Agricultural and Micro-Credit Specific provision 3,594
The Short-term Agricultural and Micro-Credit will
be considered irregular if not repaid within the due General provision 1,716
date as stipulated in the loan agreement. If the said Charges for specific allowances and
irregular status continues, the credit will be classified charge-offs during the period
as ‘Substandard ‘ after a period of 12 months, as
‘Doubtful’ after a period of 36 months and as ‘Bad/ Specific provision 2,132
Loss’ after a period of 60 months from the stipulated
General provision (80)
due date as per the loan agreement.
Description of approaches followed for specific
BDT in million
and general allowances and statistical methods
The Bank is following the general and specific Non-Performing Assets ( NPAs) Y2017
provision for loans and advances/investments on Gross non-performing assets (NPAs) 11,478
the basis of Bangladesh Bank guidelines issued from
time to time (please refer to Annexure - I). Non-Performing Assets (NPAs) to 6.40%
Outstanding Loans & advances
Discussion of the bank’s credit risk management
policy Movement of Non-Performing Assets (NPAs)
The Board approves the credit policy, credit exposure
Opening balance 7,251
limits and credit risk management policy keeping
in view relevant Bangladesh Bank guidelines to Additions 9,293
ensure best practice in credit risk management and Reductions (5,066)
maintain quality of assets. Authorities are properly
delegated ensuring checks and balance in credit Closing balance 11,478
operation at every stage, i.e. screening, assessing Movement of specific provisions for NPAs
risk, identification, management and mitigation of
credit risk as well as monitoring, supervision and Opening balance 2,355
recovery of loans with provision of early warning Provisions made during the period 2,238
system. There is a separate credit risk management
Write-off (999)
division for dedicated credit risk management,
separate credit administration division for ensuring Write-back of excess provisions -
perfection of securities and credit monitoring Provision transferred to general reserve Nil
and recovery division for monitoring and recovery
of irregular loans. Internal control & compliance Closing balance 3,594
division independently assess the quality of loans
and compliance status of loans at least once in a year.
E) Equities: Disclosures for Banking Book
Quantitative Disclosures Positions
ii. Total gross credit risk exposures Annexure – II. Qualitative Disclosures
broken down by major types of credit
i. The general qualitative disclosure requirement
exposure.
with respect to equity risk, including:
iii. Geographical distribution of Annexure – III
exposures, broken down in significant Differentiation between holdings on which capital
areas by major types of credit exposure. gains are expected and those taken under other
objectives including for relationship and strategic
iv. Industry or counterparty type Annexure – IV
reasons; and
distribution of exposures, broken down
by major types of credit exposure. Differentiation between holdings of equities for
v. Residual contractual maturity Annexure – V capital gain and those taken under other objectives
breakdown of the whole portfolio, broken is being clearly identified. Investment in equity
down by major types of credit exposure. securities is broadly categorized into two parts:
vi. By major industry or counterparty type: Annexure – VI Quoted Securities (Common or Preference Shares
Amount of impaired loans and if available, & Mutual Fund) that are traded in the secondary
past due loans, provided separately market (Trading Book Assets).
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101
Unquoted securities are categorized as banking iii. The cumulative realized gains (losses)
book equity exposures which are further sub- arising from sales and liquidations in 1
divided into two groups: unquoted securities which the reporting period
are invested without any expectation that these
will be quoted in near future, i.e. held to maturity iv.
(HTM), and securities those are acquired under Total unrealized gains (losses) (137)
private placement or IPO and are going to be traded
in the secondary market after completing required Total latent revaluation gains (losses) Nil
formalities. Unquoted securities are valued at cost. Any amounts of the above included in
Nil
The equity positions are reviewed periodically by the Tier-2 capital
senior management.
v. Capital requirements broken down by appropriate
Discussion of important policies covering the
equity groupings, consistent with the bank’s
valuation and accounting of equity holdings in
methodology, as well as the aggregate amounts
the banking book. This includes the accounting
and the type of equity investments subject to
techniques and valuation methodologies used,
any supervisory provisions regarding regulatory
including key assumptions and practices affecting
capital requirements.
valuation as well as significant changes in these
practices. BDT in million
Important policies covering equities valuation and
accounting of equity holdings in the Banking Book Capital Charge on Equities Y2017
are based on the use of the cost price method for Specific Risk 94.6
valuation of equities. The primary aim is to invest
in these equity securities for the purpose of capital General Market Risk 94.6
gain by selling them in the future or held for dividend Total 189.3
income. Dividends received from these equity
securities are accounted for as and when received.
Both Quoted and Un-Quoted equity securities F. Interest rate risk in the banking book
are initially recognized at cost and necessary (IRRBB)
provisions are maintained if the prices fall below
the cost price after comparing with their fair value. Qualitative Disclosures
As per to Bangladesh Bank guidelines, the HFT
i. The general qualitative disclosure requirement
equity securities are revalued once in each week
including the nature of IRRBB and key
using marking to market concept. However equity
assumptions, including assumptions regarding
investment in associates/joint ventures are initially
loan prepayments and behavior of non-maturity
recognized at cost and provision is maintained if
deposits, and frequency of IRRBB measurement.
cost is higher than lower of market value and net
assets value of that investee as per instruction of Interest Rate Risk is managed through the use of
Bangladesh Bank. Preference is given to purchase Gap analysis of rate sensitive assets and liabilities
of shares of strong companies at face value through and monitored through prudential limits and stress
placement/ IPO. testing. The IRRBB is monitored in movements/
changes on a monthly basis and the impact on Net
Quantitative Disclosures Interest Income is assessed. Interest rate risk is
ii. Value disclosed in the balance sheet of the risk where changes in market interest rates
investments, as well as the fair value of those might adversely affect a bank’s financial condition.
investments; for quoted securities, a comparison Changes in interest rates affect both the current
to publicly quoted share values where the share earnings (earnings perspective) as well as the net
price is materially different from fair value. worth of the bank (economic value perspective).
Re-pricing risk is often the most apparent source
BDT in million of interest rate risk for a bank and is often gauged
Particulars Y2017 by comparing the volume of a bank’s asset that
mature or re-price within a given time period with
Cost price of quoted shares 824 the volume of liabilities that do so. The short term
Fair value of quoted shares 716 impact of changes in interest rates is on the bank’s
Net Interest Income (NII). In a longer term, changes
Decrease in value 109 in interest rates impact the cash flows of the assets,
liabilities and off-balance sheet items, giving rise
to a risk to the net worth of the bank arising out of
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all re-pricing mismatches and other interest rate bands (or 15 times-bands in the case of low coupon
sensitive position. The ALCO formulates the policy instruments). Fixed-rate instruments are allocated
and strategy depending on the market conditions to according to the residual term to maturity and
maximize Net Interest Income. floating-rate instruments according to the residual
term to the next re-pricing date.
In Standardized (rule based) Approach the capital

ii. The increase (decline) in earnings or
requirement for various market risks (interest rate
economic value (or relevant measure used by
risk, price, and foreign exchange risk) are determined
management) for upward and downward rate
separately.
shocks according to management’s method for
measuring IRRBB, broken down by currency (as The total capital requirement in respect of market
relevant). risk is the sum of capital requirement calculated for
each of these market risk sub-categories. e.g.:
Please refer to Annexure – VII.
a. Capital Charge for Interest Rate Risk = Capital
Charge for Specific Risk + Capital Charge for
G) Market Risk General Market Risk;
Qualitative Disclosures b. Capital Charge for Equity Position Risk = Capital
i. Views of BOD on trading/investment activities Charge for Specific Risk + Capital Charge for
General Market Risk;
The trading/investment activities in the IFIC Bank
Limited are managed cautiously so that maximum c. Capital Charge for Foreign Exchange Risk =
returns are obtained without taking undue risks. Capital Charge for General Market Risk;
The Board approves all policies related to market d. Capital Charge for Commodity Position Risk =
risk, set limits and review compliance on a regular Capital charge for General Market Risk.
basis. The objective is to provide cost effective
Market Risk Management system
funding to finance asset growth and trade related
The Asset Liability Management Policy of the
transactions. Market risk is the possibility of losses
Bank as approved by the Board ensures effective
of assets in the balance sheet and off-balance sheet
management of the Market Risk through a well-
positions arising out of volatility in market variables
structured Treasury function which includes a Front
i.e., interest rate, exchange rate and price. Allocation
Office, Mid Office and Back Office and an ALCO body.
of capital is required in respect of the exposure to
The aim of the Market Risk Management System is
risks deriving from changes in interest rates and
to minimize the impact of losses on earnings due to
equity prices in the bank’s trading book, in respect
market fluctuations.
of exposure to risks deriving from changes in foreign
exchange rates and commodity price in the overall Policies and processes for mitigating market risk
banking activity. The policy contains sound Portfolio management
procedures and best practices such as minimizing
The market risk covers the followings risks of the
risks through diversification of portfolio. Policy
Bank’s balance sheet:
for managing Market Risk has been set out by
Interest rate risk
the Board of Directors of the Bank where clear
Equity price risk
instructions have been given to Loan Deposit Ratio,
Foreign exchange risk; and
Whole Sale Borrowing Guidelines, Medium Term
Commodity price risk
Funding, Maximum Cumulative Outflow, Liquidity
Methods used to measure Market risk Contingency Plan, Local Regulatory Compliance,
The Bank uses the Standardized (rule based) Recommendation/ Action Plan etc. Furthermore,
Approach to calculate the Market Risk for Trading special emphasis has been put on the following
Book Exposures. The total capital requirement issues for mitigating market risk:
in respect of market risk is the aggregate capital
Interest Rate Risk Management - Treasury Division
requirement calculated for each of the risky sub-
reviews the risks of changes in income of the Bank as
categories. For each risk category minimum capital
a result of movements in market interest rates. In the
requirement is measured in terms of two separately
normal course of business, the Bank tries to minimize
calculated capital charges for ‘specific risk’ and
the mismatches between the duration of interest
‘general market risk’.
rate sensitive assets and liabilities. Effective Interest
Maturity Method has been prescribed by Bangladesh Rate Risk Management is done as under: been put on
Bank in determining capital against market risk. the following issues for mitigating market risk:
In the maturity method, long or short positions in
Market Analysis - Market analysis over interest
debt securities and other sources of interest rate
rate movements are reviewed by the Treasury
exposures, including derivative instruments, are
Division of the Bank. The type and level of
slotted into a maturity ladder comprising 13 times-
mismatch interest rate risk of the Bank are
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managed and monitored from two perspectives, equities held by the Bank. Equity Risk is managed by
being an economic value perspective and an the following fashion:
earnings perspective.
Investment Portfolio Valuation - Mark-to-Market
Gap Analysis - ALCO has established guidelines valuations of the share investment portfolio
in line with the central Bank’s policy for the are followed in measuring and identifying risk.
management of assets and liabilities, monitoring Mark-to-Market valuation is done against a
and minimizing interest rate risks at an predetermined cut loss limit.
acceptable level. ALCO in its regular monthly
Diversified Investment to minimize Equity Risk
meeting analyzes Interest Rate Sensitivity by
- IFIC minimizes the Equity Risks by Portfolio
computing GAP i.e. the difference between Rate
diversification as per investment policy of the
Sensitive Assets and Rate Sensitive Liability and
Bank.
take the decision of enhancing or reducing the
GAP according to the prevailing market situation Margin Accounts are monitored very closely: Where
aiming to mitigate interest rate risk. Margin loan is allowed, security of investment,
liquidity of securities, reliability of earnings and risk
Foreign Exchange Risk Management - Risk arising
factors are considered and handled professionally.
from potential change in earnings resulted from
exchange rate fluctuations, adverse exchange Quantitative Disclosures
positioning or change in the market prices are BDT in million
considered as Foreign Exchange Risk. Treasury
and International Division manage this risk in the
ii. The capital requirements for Y2017
following fashion: Interest rate risk 21
Continuous Supervision - The Bank’s Treasury Equity position risk 213
Division manages and controls day-to-day
Foreign exchange risk 181
trading activities under the supervision of ALCO
that ensures continuous monitoring of the level Commodity risk Nil
of assumed risks. Treasury Division monitors the
foreign exchange price changes and Back Office
of the Treasury Division verifies the deals and
H) Operational risk
passes the entries in the books of account. Qualitative Disclosures
Treasury Back Office separated from the i. Views of BOD on system to reduce Operational
Treasury Front Office - Treasury Back Office is Risk
conducting its operation in separate locations IFIC Bank manages its operational risk by
apart from the Treasury Front Office. Treasury identifying, assessing, monitoring, controlling
Back Office is responsible for currency and mitigating the risk, rectifying operational
transactions, deal verification, limit monitoring risk events and implementing any additional
and settlement of transactions independently. procedures required for compliance with regulatory
Treasury Back Office gathers the market rates requirements. Operational risk management
from an independent source other than dealers responsibilities are assigned to the senior
of the same organization, which helps to avoid management. Internal auditors are assigned
any conflict of interest. for recording, identification and assessment of
Mark-to-Market Method for Approved Securities operational risks and to prepare reports for the Audit
and Foreign Exchange Revaluation - All foreign Committee.
exchange reserves and balances along with Operational risk is defined as the risk of loss resulting
approved securities are revalued at Mark- from inadequate or failed internal processes,
to-Market method according to Bangladesh people and systems or from external events. This
Bank’s guidelines. Such valuations are made definition includes legal risk, but excludes strategic
after a specific time interval as prescribed by and reputation risk. It is inherent in every business
Bangladesh bank. organization and covers a wide spectrum of issues.
Nostro Accounts - Nostro accounts are The Board of Director (BOD) of the Bank and its
maintained by the Bank with various currencies Management firmly believe that this risk through
and countries. These Accounts are operated by a control based environment in which processes
the International Division of the Bank. All Nostro see documented, authorization as independent
accounts are reconciled on a monthly basis. The and transactions are reconciled and monitored.
management reviews outstanding entry beyond This is supported by an independent program of
30 days for settlement purpose. periodic reviews undertaken by internal audit, and by
monitoring external operational risk events, which
Equity Risk Management - Equity Risk is the risk of
ensure that the group stays in line which industry
loss due to adverse changes in the market price of
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best practice and takes account or lessons learned Bank Management. The Academy also re-designs
from publicized operational failures within the its courses, programs, etc., regularly to meet the
financial services industry. requirement of new skills arising out of various
The BOD has also modified its operational risk directives, guidelines of the Central Bank and
management process by issuing high level standards, significant changes in the banking sector from time
supplemented by more detailed formal guidance. to time.
This explains how the bank manages operational risk Performance goals are most often attained by
by identifying, assessing, monitoring, controlling and executives and staffs with a few exceptions. Every
mitigating the risk, rectifying operational risk events, organization needs to effectively manage its human
and implementing any additional procedures required resources to get the maximum contribution from its
for compliance with local regulatory requirements. employees.
The Bank maintains and tests contingency facilities
Potential external events
to support operations in the event of disasters.
Losses from external events, such as a natural
Additional reviews and tests are conducted in the
disaster that damages a firm’s physical asset or
event that any branch of the bank is affected by a
electrical or telecommunications failures that
business disruption event, to incorporate lessons
disrupt business, are relatively easier to define than
learned in the operational recovery from those
losses from internal problems, such as employee
circumstances. Plans have been prepared for the
fraud and product flaws. It is needless to say that
continued operation of the bank’s business, with
there are certain risk factors which are external in
reduced staffing levels.
nature and can affect the business of the Bank. The
Operational risk loss data are collected and reported factors discussed below can significantly affect the
to the senior management. Identifying, monitoring business:
and recording of fraud, irregularities, unauthorized
External rules and regulations: Potential for actual
works, system breakdown, etc. are done by the
or opportunity loss due to failure to comply with laws
Management and details of the untoward incidents
or regulations, or as a result of changes in laws or
are reported to the Bank’s Audit Committee.
regulations or in their interpretation or application.
Performance gap of executives and staffs
Damage to assets: Potential for loss or damage to
Human Resources Development is focused on
physical assets and other property from natural
recruitment and in-house training for both on the
disaster and other events.
job and off the job. IFIC Bank Training Academy,
the oldest institution in the private sector, was Safety and security: Potential for loss or damage to
conceived of as an in-house training center to take health or safety of staff, customers or third parties
care of the training needs of the Bank internally. arising from the effects of external events.
The academy is fully equipped with a professional External financial crime: Potential for loss due to
library, modern training aids and professional faculty. criminal acts by external parties such as fraud, theft
The library has a huge number of books on banking, and other criminal activity.
economics, accounting, management, marketing
and other related subjects. Main training activities Political condition and general business: IFIC’s
consist of in-depth foundation programs for entry performance greatly depends on the general
level Management Trainees. Specialized training economic conditions of the country. The effect of
programs in the areas like general banking, advance, recession is still unfolding which may result to slow
foreign exchange, marketing and accounts etc. are down in business environment. Political stability is
also organized by the Academy depending on need. must for growth in business activities.
Frequently outreach programs are organized to Credit quality of borrowers: Risk of deterioration
meet demand for new and specialized skills. of credit quality of borrowers is inherent in banking
During its many years of existence, the Academy not business. This could result due to the global economic
only conducted courses, workshops and seminars as crisis and supply side distortion. The changes in
required by the Bank, but it also organized training the import prices affected the commodity sectors
programs for the Bank of Maldives, Nepal Bangladesh and ship breaking industry. A deterioration in credit
Bank Limited (NBBL) and Oman International quality requires provisioning.
Exchange LLC. In addition, the Academy has also Basel-III implementation: Basel-III is fully effective
the credit of organizing system of Bank of Maldives. from 2015 and IFIC needs to be complied with
In addition to conducting courses internally, The respect to credit risk management, its supervision
Academy also selects candidates for nomination to and establishment of effective internal control. The
various courses conducted by distinguished training grading of the borrowers and its link with the capital
organizations in the country, including Bangladesh required may slow down the credit expansion. The
Bank Training Academy and Bangladesh Institute of establishment of effective control requires more
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investment in technology and operating expenses n = number of the previous three years for which
are likely to increase. gross income is positive.
Equity markets Volatility: The Bangladesh Besides, Gross Income (GI) is calculated as “Net
Securities and Exchange Commission and the stock Interest Income” plus “Net non-Interest Income”.
exchanges improved their supervisory role, but the The GI is also the net result of:
equity market is still volatile. If volatility continues it
Gross of any provisions;
is likely to affect the performance of the bank.
Gross of operating expenses, including fees paid to
Changes in market conditions: Changes in market
outsourcing service providers;
conditions, particularly interest rates on deposits and
volatility in the foreign exchange market are likely Excluding realized profits/losses from the sale of
to affect the performance of the bank. Depositors securities held to maturity in the banking book;
are becoming increasingly price sensitive and any Excluding extraordinary or irregular items;
unilateral upward change by a bank will exert pressure
on the interest rate structure of the banking sector. It Excluding the income derived from insurance.
is feared that wage earners remittances may decline Quantitative Disclosures
due to fall in job opportunity in international market.
ii. The capital requirements for operational risk:
Unless offset by export performances, there may be
BDT 1,556 Million
pressure in the foreign exchange market.
The litigation risk: In the ordinary course of business, I) Liquidity Ratio
legal actions, claims by and against the bank may
arise. The outcome of such litigation may affect the Qualitative Disclosures
financial performance of the bank.
i. Views of BOD on system to reduce liquidity Risk
Policies and processes for mitigating operational
In line with the provisions of liquidity risk management
risk
under Basel III, Bangladesh Bank has identified the (i)
The Operational Risk Management Policy adopted
Liquidity Coverage Ratio (LCR); (ii) Net Stable Funding
by the Bank outlines organizational structure and
Ratio (NSFR); and (iii) Leverage under the purview
detailed processes for management of operational
of ‘Liquidity’ ratio vide BRPD Circular No. 18 dated
risk. The basic objective of the policy is to closely
21 December 2014 and DOS Circular No. 1 dated 1
integrate operational risk management system into
January 2015. The Board of Directors (BOD) reviews
day-to-day risk management process of the bank
the liquidity risk of the Bank on quarterly rest while
by clearly assigning roles in effectively identifying,
reviewing the Quarterly Financial Statements, Stress
assessing, monitoring and controlling and mitigating
Testing Report etc. ALM Policy Guideline approved
operational risk. Operational risks in the Bank
and revised time to time by the Board of Directors.
are managed through a comprehensive and well-
articulated internal control frameworks. An overview on liquidity position and liquidity ratios
are submitted annually to the BOD and the BOD
Approach for calculating capital charge for
approve the strategic plan for managing optimum
operational risk
liquidity. The Board always strives to maintain
The Bank follows the Basic Indicator Approach (BIA).
adequate liquidity to meet up Bank’s overall funding
The BIA stipulates the capital charge for operational
need for the depositors, borrowers’ requirements
risk is a fixed percentage, denoted by α (alpha) of
as well as maintain regulatory requirements
average positive annual gross income of the Bank
comfortably.
over the past three years. It also states that if the
annual gross income for any year is negative or zero, Methods used to measure Liquidity risk
that should be excluded from both the numerator The maintenance of Cash Reserve Requirement
and denominator when calculating the average (CRR) and Statutory Liquidity Ratio (SLR) are
gross income. The capital charge for operational risk considered as the fundamental methods/tools to
is enumerated by applying the following formula: measure the liquidity position/risk of IFIC Bank.
However, under Basel III, the following methods and
K = [(GI1 + GI2 + GI3) × α ] / n
tools are mandated for measuring the liquidity risk.
Where:
Liquidity Coverage Ratio (LCR): Liquidity Coverage
K = the capital charge under the Basic Indicator Ratio ensures to maintain an adequate level of stock
Approach of high quality liquid assets that can be converted
GI = only positive annual gross income over the into cash to meet its liquidity needs (i.e. total net cash
previous three years (i.e., negative or zero gross outflows) over the next 30 calendar days.
income if any shall be excluded) Net Stable Funding Ratio (NSFR): Net Stable
α = 15 percent Funding Ratio aims to limit over-reliance on short-
term wholesale funding during times of abundant
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market liquidity and encourage better assessment The treasury will handle the liquidity shortfall if
of liquidity risk across all on- and off-balance sheet happened with increasing the core deposit of the
items. The minimum acceptable value of this ratio Bank from the depositors for supporting the loans and
is 100 percent, indicating that, available stable advances portfolio of the Bank, and borrowing from
funding (ASF) should be at least equal to required other Banks, Financial Institutions and Central Bank.
stable funding (RSF). ASF consists of various kinds The treasury will assess the level of interbank
of liabilities and capital with percentage weights borrowing capacity and raise funds to meet liquidity
attached given their perceived stability. RSF consists from the most reliable sources.
of assets and off-balance sheet items, also with
percentage weights attached given the degree to To maintain SLR
which they are illiquid or “long-term” and therefore Statutory Liquidity Requirement (SLR) is maintained
requires stable funding. as per directives of Bangladesh Bank from time to
time by way of investment in approved securities.
In addition to the above, following measures have been
put in place to monitor the liquidity risk management To maintain NOP
position of the Bank on a continued manner: i) Asset- The treasury manages the necessary foreign
Liability Maturity Analysis (Liquidity profile); ii) Whole currency required by the Bank by using its own
sale borrowing capacity; and iii) Maximum Cumulative intelligence and skill and they do the following trade-
Outflow (MCO). Besides, following tools are also used Spot, Forward, Swap, Other Foreign Exchange Deals
for measuring liquidity risk: i) Stress Testing (Liquidity by using different hedging techniques.
Stress); and ii) Net open position (NOP) limit - to To maintain Advance-to-Deposit Ratio (ADR)
monitor the FX funding liquidity risk. The business of the Bank is forecasted based on the
Liquidity risk management system current loan, investment and funding strategies, and
At the management level of IFIC Bank Limited, the anticipated funding need.
liquidity risk is primarily managed by the Treasury To maintain LCR
Division (Front Office) under oversight of Asset
Liability Committee (ALCO) which is headed by Liquidity coverage is maintained by-
the Managing Director along with other senior a. Increasing investment in T-bills, BGTB, BB Bill,
management. Treasury Division (Front Office) upon Reverse Repo
reviewing the overall funding requirements on daily b. Additional investment in Govt. Security shall be
basis sets their strategy to maintain a comfortable/ made in short/mid/long combination to meet
adequate liquidity position taking into consideration liquidity as well as optimize the return
of Bank’s approved credit deposit ratio, liquid assets to
c. Balance in FC Accounts with BB to be increased
total assets ratio, asset-liability maturity profile, Bank’s
earning/profitability as well as overall market behavior d. Deposit from FIs and Borrowing are to be reduced
and sentiment etc. Apart from the above, Basel Unit and replaced by increasing Customer Deposit,
also monitors & measures the liquidity risk in line with and
the Basel III liquidity measurement tools, namely, LCR, e. Lending/Placement with FI should be more
NSFR, Leverage Ratio. The unit addresses the key preferable than lending to others.
issues and strategies to maintain the Basel III liquidity To maintain NSFR
ratios to the respective division(s) on regular interval. Stable Funding is maintained by increasing Capital,
Policies and processes for mitigating liquidity risk increasing stable customer Deposits, increasing
The Asset-Liability (ALCO) policy leads the process & Mortgage Loan and Lending having 50% risk weight,
procedures for mitigation of liquidity risk of IFIC Bank. decreasing Investment in Capital Market, and
ALCO works under specific Terms of References controlling growth of Fixed Assets.
approved by the Board. Treasury Division (Front
Office) and ALM desk under regular supervision
BDT in million
of Top Management reviews the overall liquidity
position of IFIC Bank and takes appropriate strategy, ii. Liquidity Ratio 2017
process in line with the industry position for managing Liquidity Coverage Ratio 102.9%
liquidity risk of the Bank. The general liquidity risk
management policies of the bank are as follows: Net Stable Funding Ratio (NSFR) 100.2%
To maintain CRR Stock of High quality liquid assets 39,012
Under the surplus liquidity condition, Treasury will Total net cash outflows over the next
handle the excess liquidity by providing more loans, 37,895
30 calendar days
investing the excess liquid fund in highly marketable
fixed income securities, and lending to other Banks, Available amount of stable funding 182,543
Financial Institutions and Reverse Repo to Central Required amount of stable funding 182,130
Bank.
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J) Leverage Ratio Approach for calculating exposure
The Bank follows the accounting measure of
Qualitative Disclosures exposure for the leverage ratio. In order to measure
i. Views of BOD on system to reduce excessive the exposure consistent with financial accounts, the
leverage Bank applies following:
An underlying cause of the global financial crisis a. On balance sheet, non-derivative exposures
was the build-up of excessive on- and off-balance will be net of specific provisions and valuation
sheet leverage in the banking system. In many cases, adjustments.
banks built up excessive leverage while apparently
maintaining strong risk-based capital ratios. The b. Physical or financial collateral, guarantee or
BOD of IFIC Bank manages leverage risk and are credit risk mitigation purchased is not allowed to
conscious to address the risk of excessive leverage reduce on-balance sheet exposure.
in a precautionary manner by taking due account of c. Netting of loans and deposits is not allowed.
potential increases in the risk of excessive leverage
The formula for Leverage Ratio is as follows:
caused by reductions of the bank’s own funds
through expected or realized losses, depending on Leverage Ration =
the applicable accounting rules. The BOD primarily
views on the growth of On and Off balance sheet Tier-1 Capital (considering all regulatory adjustments
exposures commensurate with its expected capital Total Exposure
growth so that the excessive leverage is reduced.
Where, Total Exposure = On-Balance Sheet Exposure
Within the On-balance components, again, the Board
+ Off-Balance Sheet Exposure - Total Deduction from
emphasizes on the growth of the prime component
On and Off-Balance Sheet Exposure/Regulatory
i.e. the loans and advances and maintaining good
adjustments made to Tier-1 capital.
asset quality so as to maximize the revenue as well
as the capacity to generate capital internally (in the On-Balance Sheet Items: The Bank includes items
form of retained earnings) to trade-off the excessive using its accounting balance sheet for the purposes
leverage supposed to be caused by asset growth. of the leverage ratio. Total On balance sheet
exposure can be derived by deducting ‘Total Specific
Policies and processes for managing excessive on
Provision’ from ‘Total On-Balance Sheet Assets’.
and off-balance sheet leverage
In order to avoid building-up excessive on- and off- Off-Balance Sheet Items: The Bank calculates the
balance sheet leverage in the banking system, a off-balance sheet (OBS) items specified in Credit
simple, transparent, non-risk based leverage ratio has Risk chapter (Table 12) of ‘Guidelines on Risk Based
been introduced by the Basel Committee. A minimum Capital Adequacy (RBCA) - Revised Regulatory
Tier 1 leverage ratio of 3% is being prescribed both Capital Framework for banks in line with Basel-III’
at solo and consolidated level. The leverage ratio is under the section of “Risk Weights Off-Balance
calibrated to act as a credible supplementary measure Sheet Exposure” by applying a uniform 100% credit
to the risk based capital requirements. The leverage conversion factor (CCF). For any commitments that
ratio is intended to achieve the following objectives- are unconditionally cancellable at any time by the
(a) constrain the build-up of leverage in the banking bank without prior notice, a CCF of 10% is being
sector which can damage the broader financial applied.
system and the economy, and (b) reinforce the risk
based requirements with an easy to understand and
BDT in million
a non-risk based measure. Predominantly, Bank’s
policy is to maintain the Leverage Ratio well above ii. Leverage Ratio Y2017
the regulatory requirement. To this end, the striking
Leverage Ratio 7.3%
components of balance sheet, namely, the deposits
& borrowing, loans & advances, other liquid assets On balance sheet exposure 253,124
(treasury bills, bonds, fund placements) are analyzed.
Off B/S exposure 25,477
Measures are taken to contain the growth of overall
size of balance sheet considering short term outlook Total exposure 278,601
of the industry indicators as well as possible growth
of equity (Tier 1 capital) of the Bank on quarterly rest.
With regard to managing the excessive leverage, K) Remuneration
the regulatory stance through the monetary policy
initiatives i.e. the scope of expected business potential
(growth), estimated money supply, inflation, resulting i. Information relating to the bodies that oversee
the estimated overall liquidity of the industry as well remuneration-
as the Bank in particular is also considered.
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Name, composition and mandate of the main body independently of the businesses they oversee
overseeing remuneration Employees’ remuneration is fully co-related with
The Board of Directors sets the remuneration individual performance. At the beginning of the
structure. Based on approval of pay package from year, mutually agreed business targets/objectives
the Board, Human Resource Management Division are set for each employee irrespective of place
disburses remuneration centrally which is supervised of posting or cost center and end of the year
by the Management. employee performance is evaluated by immediate
External consultants whose advice has been supervisor. The evaluation process is overviewed
sought, the body by which they were commissioned, by “Performance Evaluation Review Committee”.
and in what areas of the remuneration process Hence, a fair performance evaluation is ensured that
No external body/consultants are involved to seek risk and compliance employees are remunerated
advice. For market research, external data are independently of the businesses they oversee.
collected informally while setting remuneration iii. Description of the ways in which current and
structure. future risks are taken into account in the
A description of the scope of the bank’s remuneration processes.
remuneration policy (eg by regions, business lines), An overview of the key risks that the bank takes
including the extent to which it is applicable to into account when implementing remuneration
foreign subsidiaries and branches measures
Bank’s remuneration policy governs the IFIC Bank The business risk including credit/default risk,
Ltd, IFIC Securities Ltd. for employees regardless of compliance & reputational risk are mostly considered
cost centers/business lines. Separate remuneration when implementing the remuneration measures for
package is practiced in case of foreign subsidiaries. each employee/group of employee. Financial and
A description of the types of employees considered liquidity risks are also considered.
as material risk takers and as senior managers, An overview of the nature and type of the key
including the number of employees in each group measures used to take account of these risks,
Generally MANCOM members or Strategic including risks difficult to measure (values need
Management Team (SMT) members are considered not be disclosed)
as material risk takers and the grade of Senior Vice Performance based remuneration is a justified way
President (SVP) and above are considered as senior to ensure equity in remuneration. The motto of
managers. “Performance Based Remuneration” is to attract
ii. Information relating to the design and structure talented & skilled workforce, increase employee
of remuneration processes motivation, productivity and reduce employee
turnover.
An overview of the key features and objectives of
remuneration policy A discussion of the ways in which these measures
The remuneration structure of the Bank is primarily affect remuneration
designation wise range based which is designed to While evaluating the performance of each employee
be market competitive to attract and retain talents. annually, all the financial and non-financial indicators
It is directly linked to the annual performance of as per pre-determined set criteria are considered;
an employee. Based on annual performance rating and accordingly the result of the performance varies
of the employees, yearly increment (Inflationary from one to another and thus affect the remuneration
adjustment & Performance Pay) is given to the as well.
employee from the range of 5 percent to 14 percent A discussion of how the nature and type of these
which is calculated on initial basic salary of each job measures has changed over the past year and
grade. reasons for the change, as well as the impact of
Whether the remuneration committee reviewed changes on remuneration
the firm’s remuneration policy during the past year, The performance based pay package is offered
and if so, an overview of any changes that were to the suitable employees based on individual
made performance. This system has been introduced
There is no specific remuneration committee to to motivate the talented staff and to attract the
review the policy. Since the remuneration structure suitable resources.
is linked to performance, Management of the Bank iv. Description of the ways in which the bank seeks
decides every year to adjust the pay structure with to link performance during a performance
national inflation and individual performance to measurement period with levels of remuneration.
make it more market competitive with the approval
An overview of main performance metrics for bank,
of the Board of Directors.
top-level business lines and individuals
A discussion of how the bank ensures that risk Based on Key Performance Indicators (KPI) for the
and compliance employees are remunerated Bank, Management segregates the target to the
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109
individual branches and division which ultimately the factors that determine the mix and their
helps in setting individual KPI at branch and head relative importance
office level. The most common KPIs are the No other variable remuneration except yearly
achievement of loan, deposit and profit target with increment which is done based on performance.
the threshold of NPL ratio, cost-income ratio, cost of
fund, yield on loans, provision coverage ratio, capital
to risk weighted asset ratio (CRAR), ROE, ROA, The quantitative disclosures detailed below covers
liquidity position (maintenance of CRR and SLR) etc. only senior management and other material risk
takers.
A discussion of how amounts of individual
remuneration are linked to bank-wide and individual vii.
Number of meetings
performance held by the main body
As part of yearly increment, performance pay overseeing remuneration
(Individual performance & bank’s performance) is N/A*
during the financial year
adjusted through giving certain percentage load on and remuneration paid to
basic salary to the eligible employees in addition to its member.
inflationary adjustment.
viii.
Number of employees
A discussion of the measures the bank will in having received a variable
29
general implement to adjust remuneration in the remuneration award during
event that performance metrics are weak the financial year.
In case of weak performance, the amount of yearly Number and total amount of
increment will not insignificant. For instance, 2 Festival & Pohela
guaranteed bonuses awarded
inflationary adjustment is given for ‘average’ and Boisakh Bonus
during the financial year.
‘above average’ rating but nothing is adjusted for (In Y2017: BDT 15
‘below average’ rating. million)
v. Description of the ways in which the bank seek
Number and total amount of
to adjust remuneration to take account of longer- sign-on awards made during Nil
term performance the financial year.
A discussion of the bank’s policy on deferral Number and total amount of
and vesting of variable remuneration and, if the severance payments made Nil
fraction of variable remuneration that is deferred during the financial year.
differs across employees or groups of employees,
a description of the factors that determine the
fraction and their relative importance
In case of deferred benefits, gratuity amount is BDT in million
relatively increased with longer period based on
service tenure. Additionally, provident fund amount
ix.
Total amount of outstanding deferred
is also affected positively with the cumulative remuneration, split into cash, shares and share-
interest applied on the fund balance. linked instruments and other forms.
A discussion of the bank’s policy and criteria for Cash Nil

adjusting deferred remuneration before vesting Shares Nil
and (if permitted by national law) after vesting
through claw back arrangements Share-linked instruments Nil
Not applicable Other forms Nil
vi. Description of the different forms of variable Total amount of deferred

remuneration that the bank utilizes and the remuneration paid out in the Nil
rationale for using these different forms. financial year.
An overview of the forms of variable remuneration x. Breakdown of amount of remuneration awards
offered (i.e. cash, shares and share-linked for the financial year to show:
instruments and other forms
Variable remuneration is offered in case of yearly Fixed and variable. 131
increment application. Moreover, bonus may be Deferred and non-deferred. Nil
variable based on approval from the Board.
Different forms used (cash, shares
A discussion of the use of the different forms of and share linked instruments, Nil
variable remuneration and, if the mix of different other forms).
forms of variable remuneration differs across
xi. Quantitative information about employees’
employees or groups of employees), a description
MARKET
exposure to implicit (e.g. fluctuations in the value Doubtful- Short term Agri. Credit 5.00%
of shares or performance units) and explicit
adjustments (e.g. claw backs or similar reversals Bad/loss 100.00%
or downward revaluations of awards) of deferred
remuneration and retained remuneration: Particulars of required provision on Off-balance
Sheet Exposure
Total amount of outstanding Not applicable
deferred remuneration and Acceptances and endorsements 1.00%
retained remuneration exposed Letters of guarantee 1.00%
to ex post explicit and/or implicit
adjustments. Irrevocable letters of credit 1.00%
Total amount of reductions during Not applicable Bills for collection 1.00%
the financial year due to ex post
explicit adjustments. Annexure – II: Total gross credit risk exposures
broken down by major types of credit exposure
Total amount of reductions during Not applicable
BDT in million
the financial year due to ex post
implicit adjustments. Particulars Y2017
* Management generally oversees remuneration on Term loan industrial 17,064

monthly basis. Term loan consumer finance 558
Annexure – I: Rate of general and specific provision Agricultural loan 3,371
for loans and advances as per Bangladesh Bank
Term loan women entrepreneur 11
Guideline
Term loan-others 41,166
Rate (%) of House building loans 28,602
Category of Loans & Advances
provision
Staff loan 1,757
General Provision-for Unclassified
Transport loan 284
Loans and advances (excluding SMA)
Loan general 2,907
Small and medium enterprise 0.25%
Demand loan 4,801
Consumer finance (house building) 1.00%
Overdrafts 33,845
Loans to LP/BHs/MBs/SDs share etc. 2.00%
Cash credit 25,764
Consumer finance 5.00%
Credit card finance 221
Consumer finance (card) 2.00%
Loan against trust receipt (LTR) 6,046
Short term agri. and micro-credit 1.00%
Lease Finance 604
All other unclassified loans 1.00%
Margin Loan 4,032
Special Mention Account (SMA) Bills purchased and discounted 11,703

Off-shore banking unit 559
Small and medium enterprise 0.25%
Total 183,296
Consumer finance (house building) 1.00%
Loans to LP/BHs/MBs/SDs share etc. 2.00% Annexure-III: Geographical distribution of
exposures, broken down into significant areas by
Consumer finance 5.00% major types of credit exposure
Consumer finance (card) 2.00% BDT in million
All other unclassified loans 1.00%
Division Y2017
Off-shore banking unit
Dhaka 148,063
Unclassified loans 1.00%
Chittagong 17,381
Specific provision-for Classified
Sylhet 1,471
Sub-standard 20.00%
Rajshahi 7,042
Sub-standard- Short term Agri. Credit 5.00%
Khulna 4,152
Doubtful 50.00%
MARKET
111
Barisal 995 Over 1 month but not more than 3
months 16,826
Rangpur 3,029
Over 3 months but not more than 1
Mymensingh 1,164
years 50,771
Total 183,296
Over 1 year but not more than 5 years 13,746
Annexure-IV: Industry or counterparty type Over 5 years 56,961
distribution of exposures, broken down by major
types of credit exposure 171,593
BDT in million Bill purchased and discounted 11,703
Particulars Y2017 Total 183,296

Agriculture Industries 4,153 Annexure-VI: Impaired and Past Due Loans
Jute Industries 2,332 BDT in million
Textile Industries 8,106
Major Status-wise amount of
Garments Industries 22,846 Counterparty impaired/ classified loans Total
Chemical and Chemical Products 83 Type
SMA SS DF BL
Cement Industries 479 Continuous Loan 308 193 298 3,847 4,646
Bricks & Ceramic 1,163 Demand Loan 643 1,246 86 501 2,477
Food Products & Processing 7,010 Term Loan 6,938 1,367 130 3,766 12,201
Engineering & Metal 4,572 Other Loan - 35 6 2 43
Drugs & Pharmaceuticals 794 Total 7,889 2,841 521 8,116 19,367
Hospital & Clinics 119
Annexure-VII: Interest Rate Risk in the Banking
Paper & Paper Products Industries 730 Book
Other Small Industries 5,574 CRAR before-shock (%) 12.57
IT Sector 3,889
Interest rate stress Minor Moderate Major
Other Service Industries 18,887
Assumed change in
Trade & Commerce 25,189 1.0% 2.0% 3.0%
interest rate
IFIC Securities Ltd. 4,032 Net interest income impact
Transport 412 <12 months 8.43 16.86 25.28
Construction Firms/Companies 4,384 Capital after-shock 2,419.81 2,428.24 2,436.66
Housing Societies/Companies 18,618 CRAR after-shock (%) 12.62 12.66 12.71
Cold Storage 166 Change in CRAR
0.04 0.09 0.13
after-shock (%)
Consumer Finance 32,636
Repricing impact
Energy 7,228
Change in the value
Telecommunication 6,481 -51.99 -103.98 -155.97
of the bond portfolio
Others 3,413
Capital after-shock 2,367.82 2,324.25 2,280.69
Total 183,296
CRAR after-shock
12.35 12.12 11.89
(percent)
Annexure-V: Residual contractual maturity
breakdown of the whole portfolio, broken down by Change in CRAR
-0.27 -0.54 -0.81
major types of credit exposure after-shock (%)
BDT in million Overall change

in CRAR (NII and -0.23 -0.45 -0.68
Particulars Y2017 repricing impact, %)
On demand 27,839
Up to 1 month 5,450
MARKET
REPORT ON
SUSTAINABLE FINANCE
(GREEN BANKING)
DIRECTORS’
113
Report on Sustainable Finance
Green Products Awareness Activities
To promote sustainable growth in economy, we provide IFIC Bank has organized 5 training/ workshops on
several financial supports under Product Program “Green Banking Practices of Commercial Banks” for
Guideline named “IFIC – Green Earth” as follows: employees in Chittagong, Khulna and Bogra in 2017.
SME Events-2017
Product Purpose
For integrated cow raring &
Domestic setting up of bio-gas plant.
Bio-gas plant For setting up bio-gas plant in
existing cattle/poultry farm.
For setting up of bio-gas plant
Commercial in existing cattle/poultry farm
Bio-gas plant & produce electricity through
gas generator.
To meet the financial need
for purchasing of 2 cows,
construction of shade and for
Vermin compost
other expenses to produce
vermin compost fertilizer for Honourable State Minister for Ministry of Women and Children Affairs,
Honourable Governor of Bangladesh Bank along with Deputy Managing
own use/business purpose. Director, Head of SME of IFIC Bank Ltd visiting the stall at “Women
Entrepreneur Product Display Fair-2017”
To set-up HHK or equivalent
Finance for Brick technology plant.
Kiln Efficiency
Improvement Conversion of traditional FCK
Projects into Improved Zig Zag Brick
Kiln
IFIC Bank also finances in “Fire Fighting & Safety

Equipment” “Green Industry” “Renewable Energy”
sector as environment friendly investment.
An amount of BDT 8,023.99 million was disbursed
as Green Finance in 2017. The Bank participated in
different Green events to showcase the green products.
Product wise disbursement of Green Finance

BDT in million Loan Disbursement Program for “Milk Production & Artificial
Insemination” and other Agricultural products at Chandina, Comilla.
20.58
1,570.93
1.6
21.34
2.51
6,407.04
Green Industry
Fire Fighting & Safety Equipment Loan
Projects financed having ETP
Bio-Gas Plant Financial Literacy and School Banking Conference at Bhola
Brick Kiln Efficiency Improvement Project
Others
REPORT ON
114 Annual Report 2017 SUSTAINABLE FINANCE
REPORT ON
RISK MANAGEMENT
DIRECTORS’
115
Annual Report 2017
Report on Risk Management
Risk is defined as the unexpected variability of Risk Management Process
assets and/or earnings. There are two major sources Risks Management Process helps management
of risk: financial and business. Financial risks are to arrive at desired indicators of profitability and
the result of bank’s financial market activities while to avert illogical resource deployment. IFIC Bank’s
business risk is the risk that is generated during risk management process is based on a clear
daily operations and includes those risks that understanding of various risks, disciplined risk
result from business decision environment. There assessment and measurement procedures and
are two types of risks i) Systematic Risk that can continuous monitoring. The policies and procedures
not be minimized/eliminated by diversification of for risk management are approved by Board of
portfolio exposure & ii) Un-systematic Risk is that Directors and the Board of Directors has oversight
can be minimized/eliminated by diversification of on all the risks assumed by the bank.
portfolio exposure. Risks are sometimes generated
Risk Management Division identifiy and quantify the
from macroeconomic environment which is not
overall risk inherent with the banking business. After
controllable for a particular bank but it can foresee
are identified and measured risks we take initiative
the risk earlier to effectively manage it as a core
to minimize the risks and keep it within the risk
competency. IFIC Bank has a comprehensive
appetite. IFIC Bank always monitor and control the
risk management processes (including Board and
risks.
senior management oversight) to identify, evaluate,
monitor, control and mitigate risks and assess the IFIC Bank is tailoring its Risk Management Program
overall capital adequacy in relation to its risk profile. to its need and circumstances. Hence, managing of
risks consists of the following five processes:
The objective of the Bank is to maximize
shareholders wealth by increasing our business Risk
activities within our board determined risk appetite, Identification
we are careful of achieving this objective in line with
the interests of all stakeholders. The prime objective
of risk management is trade-off between risk and Controlling Risk
&
reward in our business portfolio. The purpose of Monitoring Measurement
risk management is to identify potential problematic
areas before they occur so that risk handling
strategies may be planned and invoked in advance
across the life of the product or project to mitigate
adverse impacts on achieving objectives. Risk
Planning
IFIC Bank handles core risks and other material risks Agreegation
of its day to day business operation and it also handles
risk judiciously to ensure optimum return on asset Fig: Risk Management Process
and equity, profitability, capital adequacy and liquidity Risk Identification
crisis in a reasonable way. Managing risks prudently The process of managing risk of the bank starts
and efficiently to ensure Risk management strategy with the identification of potential risks. Hence,
proactively identifies, measures, mitigates, monitors risk identification can start with the source of our
and control risks. Functionally the risk management problems. Risk sources may be internal or external
process is accomplished at the strategic level, the to the system that is the target of risk management.
managerial level and operational level. Typically, IFIC distinguishes the following risk
At the decision level, the RMC of Board approved the categories:
assessment of core risk management, status of core zz Credit Risk;
risk rating developed by Risk Management Division, zz Foreign Exchange Risk;
risk governance & risk culture, reviews and risk
zz Anti Money Laundering Risk;
policies as well as the threshold limits of risks to be
taken in line with the bank’s risk appetite. These limits zz Asset – Liability Management Risk;
are continuously monitored by an experienced risk zz Internal Control & Compliance Risk;
management team. At the Board level, policies and zz Information & Communication Technology Risk;
strategies formulated by the BOD are implemented zz Other risks.
by top and middle management devoted to risk
reviews. The operational level encompasses in the Risk Measurement
line of risk management where risks are actually Once risks have been identified, they are measured
arises. in order to determine their impact on the bank’s
REPORT ON
116 Annual Report 2017 RISK MANAGEMENT
profitability and capital. The above-mentioned requirement will be 12.50% from January 01, 2019. To
types of risks are to be consistently assessed and increase the quality and quantity of the capital base
that is an essential prerequisite for successful of the Bank, Basel III has introduced the following
risk management. Credit risk assessment and measures: 1. Tier 1 capital has been divided into two
measurement in IFIC is calculated on the basis of parts: Common Equity Tier 1 (CET1) and Additional
possible losses from the credit portfolio. Potential Tier 1 (AT1). 2. The definition of capital has been
losses in the credit business can be divided into made stringent. Tier 3 capital has been eliminated.
expected losses and unexpected losses. Expected 3. The Bank has to maintain 3% leverage ratio along
losses are derived from the borrower’s expected with Liquidity Coverage Ratio (LCR) of 100% or more
probability of default. Unexpected losses result from and Net Stable Funding Ratio (NSFR) of more than
deviations in losses from the expected loss. 100%.
Risk Aggregation IFIC Bank is complying fully with Basel III standards
When aggregating risks, it is important to take into as per approaches chosen by the Central Bank for
account correlation effects which cause a bank’s implementation of Basel III accord in Bangladesh.
overall risk differing from the sum of the individual
risks. This applies to risks both within a risk category Risk Management Division (RMD)
as well as across different risk categories. Risk Management Division review and monitor the
risks continuously of the Banks’ Risk Management
Further, approach to manage risks at transaction level
policies, methodologies, guidelines and
– i.e. at branch level where business transactions are
procedures for risk identification, measurement
undertaken – and at aggregate level – i.e. sum total of
and acceptance level of risk. Various analysis
all transactions undertaken at all branches – differs.
including Value at Risk (VaR) analysis are done.
Planning Stress testing is being conducted on a regular basis.
Overall risk exposure of IFIC Bank is planned in a well
Risk management refers to the practice of identifying
organized manner. Risks are actively managed and
potential risks in advance, analyzing them and taking
controlled according to plan.
precautionary steps to reduce/curb the risk. Risk
Controlling & Monitoring is an integral part of the Banking business and IFIC
The risks involved in the banking business are Bank’s aim is to deliver and maximize shareholders’
properly controlled and monitored to make sure value by achieving an appropriate trade- off between
whether the risks actually incurred lie within the risk and returns.
stipulated limits, thus ensuring the capacity of bank
The Risk Management Division is responsible to
to bear those risks.
ensure the following:
Committees for Risk Management of the Bank zz Serving as secretariat of Risk Management
Committee of the Management
The Bank has specific committees for risk
zz Development/review of risk management
management such as:
policies, methodologies, guidelines, and
zz Senior Management Team (SMT) procedures for risk Identification, risk
zz Credit Committee measurement, risk monitoring, determining
zz Asset Liability Committee (ALCO), acceptance level of risk, risk controlling in line
zz Risk Management Committee at Management with the guidelines provided by Bangladesh Bank.
Level zz Review and update of all risks in a systematic
zz Risk Management Committee at Board Level basis as necessary at least annually, preferably
twice a year, ensuring that adequate control
The above Committees hold meeting on a exists and that the related returns reflect these
predetermine interval to appraise the credit, market, risks and the capital allocated to support them.
liquidity, interest rate, equity price and different risks
zz Setting of portfolio objectives and tolerance
related factors and recommend vis-a-vis implement
limits/parameters for each of the risks.
appropriate measures to counter associated risks.
Appropriate internal control measures are also in zz Establishment of strategies and different models
place to minimize the operational risks. consistent with risk management policy based
on IT policy and in house IT support which can
Banking Industry has entered into the Basel-III measure, monitor and maintain acceptable risk
regime from January 01, 2015. Bangladesh Bank level of the Bank.
revised the capital standard based on Basel-III and
zz Development of Management Information
planned to implement it gradually from 2015 to 2019.
System (MIS) inflow process and data
A Capital Conservation Buffer (CCB) of 2.5% is to be
management capabilities to support the Risk
built-up @ 0.625% each year from the beginning of
Management functions of the Bank.
2016 to 2019. This is in addition to existing Minimum
Capital Requirement (MCR) of 10%. It means CRAR zz Highlighting of risky portfolios and deficiencies of
REPORT ON
117
RISK MANAGEMENT Annual Report 2017
the Bank in timely manner with recommendations level risk management committee with the CRO
and suggestions. as the head.
zz Analyzing data/information through preparation zz Bank shall appoint at least an EVP/SVP/VP as
of Risk Management Paper and place before the the head of the RMD who is experienced in risk
Risk Management Committee for submission to management and who will be a member of all
Bangladesh Bank on a regular basis. important committees related to risks.
zz Identifying, evaluating/measuring, controlling zz The RMD shall report high-risk related
& monitoring of major risks in line with Risk matters, identified by the management-level
Management guidelines provided by Bangladesh risk committee, directly to the Board risk
Bank. management committee, and shall provide
zz Reviewing of the assessment of Risk Based a copy to the Managing Director & CEO for
Capital Adequacy and oversee the capital acknowledgement.
management functions of the Bank as per Basel zz Bank shall entrust in the RMD the responsibility
III Accord. of monitoring implementation of required
zz Identifying, assessing and quantifying of key corrective action, related to objections revealed
transaction risks inherent in a given transaction in the inspections conducted on the basis of the
to ensure that the quality of the assumptions core risk management guidelines.
are tested against due diligence carried out by zz The RMD shall determine the risk appetites
different operational business units. on yearly basis for all possible measurable risk
zz Reviewing of market conditions and areas. These areas include, but are not limited
recommending taking precautionary measures to, sector, industry and area- wise loan targets,
towards facing abnormal market situation & credit concentration among top-20 borrowers,
vulnerability of investments of the Bank. off-balance sheet exposure as a percentage of
zz Analyzing of the bank’s own resilience capacity total assets, the annual growth rate for loans
towards facing financial difficulties of the Bank. and advances, limitations on the percentage
of financial liabilities sourced from the top-10
zz Undertaking/reviewing of periodic Stress Testing suppliers, the gaps between total assets and
as per Bangladesh Bank Guidelines. liabilities in different time buckets of the liquidity
zz Reviewing of the Bank’s risk rating systems profile, the gap between rate-sensitive assets
to ensure that they are fit for the purpose and and rate-sensitive liabilities in different time
adequately utilized to control risk in the Bank. buckets, various ratios regarding liquid assets,
zz Recommending appropriate action to mitigate expected loss from operational risk, and the
any other risk through the Risk Management Capital to Risk-weighted Asset Ratio (CRAR) after
Committee or to the top management of the applying stress test. These risk appetites must be
bank. approved by the Board and sent to Department
of Off-Site Supervision (DOS), Bangladesh Bank
Bangladesh Bank Requirement by the end of first quarter of every year.
Sound risk management is crucial for Banks. zz Bank shall submit the soft copy of their stress
Necessary instructions have been issued from time test results to DOS along with the CRMRs in
to time through circulars, guidelines and letters order to facilitate BB’s determination of the
with a view to ensuring proper application of sound Comprehensive Risk Management Rating and
risk management in Banks; i.e., for building the understanding of the shock resilience capacity of
necessary infrastructure and taking various steps for the individual bank.
identification, measurement, monitoring, and control
or mitigation of various existing and potential risks; Objectives of Risk Management
and maintaining adequate capital and provision to The objective of risk management is to identify
support risk-taking. For stronger and timely/updated and analyze risks and manage their consequences.
risk management activities, bank has to follow as The banking sector has perhaps the most specific
appended below: focus on the management of financial risks. The
guiding standard that is a key influence on Central
zz Bank shall prepare a Board-approved Banks and banking regulations comes from the
organogram of the risk management division, Swiss based Bank for International Settlements
ensuring the use of information technology (BIS) and particularly it’s BCBS. The update of the
along with the appointment of adequate and standards, known as Basel III, has been or is in the
skilled manpower. process of being, applied by bank regulators across
zz Bank shall appoint a Chief Risk Officer (CRO) the world. While Basel III introduces a new and
from at least the AMD/DMD level who is not in- more complex method of calculating regulatory
charge of the Internal Control and Compliance capital requirements, its implementation requires
department, and shall also form a management- that the bank adopt policies and procedures of risk
REPORT ON
management for generate necessary data for sound Risk Management Committee of the Board
decision making. Risk management is a discipline The RMC of Board has been formed to minimize
at the core of every financial institution and probable risks arisen during implementation of
encompasses all activities that affect its risk profile. Board approved policies, procedures, Risk appetite,
It involves identification, measurement, monitoring Risk tolerance, risk limit in line with Strategic
and controlling risks to ensure that : planning/ Long-term Business Planning. The
RMC of Board is entrusted to examine and review
zz The individuals who take or manage risks clearly whether management is properly working on
understand it; identification, management and mitigation of credit
zz The organization’s risk exposure is within the risk, foreign exchange risk, internal control and
limits established by the highest authority of the compliance risk, money laundering risk, information
institution; and communication technology risk, operation
zz Risk taking decisions are explicit and clear; risk, interest rate risk and liquidity risk and keeping
zz Risk taking decisions are in line with the business adequate provision and capital against the said risks.
strategy and objectives set by the highest
Role and Responsibilities of the Committee
authority of the institution;
zz The expected payoffs compensate for the risks Risk Identification and Control
taken; and zz To formulate and implement strategies/policies/
zz Sufficient capital is available as a buffer to take processes/procedures for assessment and control.
zz To review existing strategies/policies/processes/
risks.
procedures as well as different internal limits and
Strategic Priorities for Prudent Risk Management suggest/ make necessary amendments.
IFIC Bank try to identify and analyze the potential zz Formulation and implementation of appropriate
risks inherent with the banking business for our for assessment and control.
risk management culture, characterized by a zz Monitoring ongoing potential risk of the bank
conservative approach and rigorous processes. identified by RMD and take necessary steps to
Always we give priorities to manage the potential mitigate those risks.
risks prudently and the possibilities of risk which zz Constructing independent committee at
may occur in near future. management level for compliance of instructions
zz For Credit Risk, our focus is developing a under risk related guidelines and supervising
strategic business plan for appetite management their activities.
and structured policy guideline and framework in
Review of Risk Management Policy
order to manage default risk.
zz Ensure to review the risk management policies
zz Ensuring effective risk management system
annually.
especially prudent management of Asset Liability
risk, Foreign Exchange risk and Operational risk. zz Propose amendments as necessary and send it
for BOD approval.
zz Ensuring meticulous compliance of disbursement
procedures and monitoring and follow-up of each Monitoring the Implementation Status of Overall Risk
loan by the Branch manager to ensure in time zz Monitor implementation of overall risk
recovery. management policies and also monitor whether
zz Strengthening recovery drive to bring down NPL proper steps taken to mitigate all risks.
at a minimum level. zz Review limit of loan approval and ALM and Forex
zz Ensuring efficient internal control and regulatory limit at least once in a year.
compliance in all levels of banking operations.
Minutes of the RMC to Bangladesh Bank
Risk Management Committee of the Management The minutes of meetings of the Risk Management
IFIC Bank has a Risk Management Committee at Committee is to be submitted to Bangladesh Bank
Management Level to concentrate on the overall within 7 days after the meeting for their information.
risk inborn of the banking business as per directive
of Bangladesh Bank. After identifying, assessing Elements of a sound risk management system
and measuring various risks of the bank and also Sound risk management is a vital to maintain for any
highlighting the risky areas of the bank, RMD financial institution. Some important elements of a
presents before the RMC of Management with proper sound risk management system should encompass
recommendations & suggestions to take corrective the following:
actions. Basically, RMC of the Management monitors zz Risk management structure with board and
the activities of RMD and also gives direction to the senior management;
concerned divisions/departments to minimize the zz Bank policies, procedures and limits that have
risks. been developed and implemented to manage
REPORT ON
119
business operations effectively; corporate governance principles and carries with it
zz Risk identification, measurement, monitoring, best practices within the banking profession. Credit
control and management information systems Risk Management process of the bank is articulated
that are in place to support all business through various Board approved policies viz. Credit
operations; and Risk Management Policy, Delegation of Business
zz Bank established internal controls and the
Powers to Individual Executives/Officers for loans
Performance of comprehensive audits to and advances, Valuation Methodology, Standardized
detect any deficiencies in the internal control Recovery/Collection Procedure etc.
environment in a timely manner. Objectives of Credit Risk Management
Risk management is not only limited to the zz Identifying, monitoring and controlling credit
individual(s), who are responsible for overall risk risks in order to maintain a manageable and
management function. Business activities are quality loan portfolio.
equally responsible for the risks that they are zz Ensuring that expected returns compensate for
taking the exposures. Because the personnel can the risks taken.
understand the risks of their activities, any lack of zz Ensuring credit risk decisions are explicit, clear
accountability on their part may hinder sound and and well calculated.
effective risk management. zz Maintaining the overall credit exposure of the
bank at prudent levels consistent with the
Characteristics of Risk Appetite
available capital.
zz Business strategy, including banks objectives,
zz Ensuring top management as well as individual
business plans and stakeholders expectations.
responsible for credit risk management has
zz Insightful of all key aspects of the business. sound expertise and knowledge to take credit
zz Risk appetite, Risk tolerance and Risk limit risk and accomplish risk management functions.
zz Considers the skills, resources and technology The lending guideline covers the following:
required to manage and monitor risk exposures
zz Industry and business segment focus including
in the context of risk appetite.
lending caps
zz Inclusive of a tolerance for loss or negative
zz Types of credit facilities
events that can be reasonably quantified.
zz Industry and Business segment focus- grow,
zz May be periodically reviewed and reconsidered
maintain & shrink.
with reference to evolving industries and market
conditions. zz Single borrower exposure limit including
syndication loans
zz Must be approved by the Board.
zz Discouraged business types
Core Risk Management in the Bank zz Large loan -10% or more of Bank’s total capital is
IFIC Bank, developed a Risk Management Policies considered and the maximum limit set according
according to Bangladesh Bank guidelines to take to net classified loans of the bank.
care of the following core risks: zz Loan facility parameters (Loan size, tenor, margin
1. Credit Risk Management & security etc.)
2. Asset Liability Risk Management zz Acceptable securities with quality and value
3. Foreign Exchange Risk Management zz Credit Risk Grading process is followed
4. Internal Control and Compliance Risk zz Insurance coverage (on goods/machineries etc
Management financed by the bank) policy
5. Money Laundering Risk Management and zz Loan pricing strategy
6. Information & Communication Technology Risk zz Loan Approval process is clearly defined
Management. zz The Early Alert Reporting system is in place
1. Credit Risk Management (CRM) zz Cross border risk

Credit risk entails the risk of loss that may occur from zz Credit assessment and credit risk grading
the nonpayment of any borrower in accordance with zz Environmental Risk Rating
agreed terms and conditions Credit risk may arise zz NPL Account Management and Credit Recovery
from the banking book, trading book even from non policy is in place.
funded exposures.
zz Audit & Inspection is done on CRM annually.
Credit Risk Management Policy of the bank is
sound and prudent bank management culture and Credit Approval Process
complies largely with industry standard, interest The Credit Officer at Branch level acts as marketing
rate and liquidity management requirements, and sales officer and is held responsible to ensure
REPORT ON
the accuracy of the entire credit application/ to the risk mitigation. In order to mitigate risks, the
proposal submitted for approval. A thorough credit Bank takes necessary guarantees and documents
and risk assessment is conducted prior to granting including charge documents.
any loan. The CRM Division are actively involved in
scrutinizing, analyzing, assessing and processing 2. Asset Liability Risk Management
the credit proposal. The Credit Risk Management The Assets and Liabilities Management are managed
Division is involved in order to balance sheet risks management, ensure
adequate liquidity, maximize stake holder’s value
in evaluation and in-depth analysis of risks associated
to enhance profitability and increase capital and
with the individual borrower and in finding out the
overall maintaining sustainable profitability of the
mitigating factors to minimize those risks. Then the
bank and to protect the bank from any disastrous
respective credit officers of Head Office place Credit
financial consequences. The Board of Directors
Committee for decision. Upon recommendation
believes that accepting some level of interest rate
of Head Office Credit Review Committee, the
risk is necessary in order to achieve realistic profit
competent authority may approve or decline the
goals. The responsibility of managing the asset/
proposal. Managing Director may recommend the
liability management procedures are monitored by
proposals which are beyond the Managing Director’s
the Asset/Liability Management Committee (ALCO).
delegated authority to the BoD as per delegation for
approval/ decision.
Credit Administration Interest

Rates
Credit Administration Division is an essential part
of the credit risk management. This is a continuous
process that support and control extension and
maintenance of credit. Major functions of credit
administration are:
zz Ensuring the all documentation complies with
Maturities Valu/Income Pricing
the terms of sanction.
zz Obtaining appropriate insurance coverage to
protect the interest of the bank as well as the
borrowers.
zz Monitoring loan disbursements to ensure that
all the terms and conditions have been complied
and all the documentation formalities have been Funding
completed before disbursement.
zz Continuous monitoring of borrower’s compliance
with terms and conditions of the sanction as well Fig: ALM at a glance
as performance in the accounts.
Asset Liability Risk Management is an essential part
In the process of evaluation and adaptation of its of risk management in a bank. There is a structured
risk management strategy, IFIC Bank has been and organized process to manage the asset liability
reviewing its CRM Policy Guideline, Lending cap, risk as well as the Balance Sheet risks. Asset Liability
Delegation of Authority and restructured the Management (ALM) Desk is an independent unit
Organogram. As per Bangladesh Bank guideline, within the Treasury Division. The desk meticulously
Environmental Risk Rating is adopted in the approval monitors and analyzes balance sheet, cash flows ,
process for our commitment to sustainable finance. balance sheet gaps, daily profit and loss, economic
Creating awareness among the corporate houses trends, investment options, arbitrage opportunities,
dealing with our bank regarding relevance of Credit business growth, liquidity and places the facts and
Rating for ultimate introduction of risk based pricing findings before the ALCO with its recommendations
vis-à-vis minimizing capital requirement of the bank. on a regular basis.
Credit Risk Mitigation process Asset Liability Committee (ALCO) comprising senior
The bank makes all possible efforts to mitigate risks management of the bank has been established
associated with credit accounts through suitable to make important decisions relating to liquidity,
collaterals, guarantors, insurance coverage etc. interest rate and balance sheet management of the
wherever it is considered feasible and desirable. In bank. The ALCO is headed by the Managing Director.
addition to that, terms and conditions under which
ALCO meeting is held once or more in every month to
credit is sanctioned also go a long way to mitigate
analyze, review and formulate strategies in order to
risks associated with credit.
manage the same. However, the main responsibility
Regular monitoring and control of accounts also add of the ALCO are:
REPORT ON
121
zz Ensure bank’s measurement and reporting mismatched re-pricing dates. The amount at risk is a
systems accurately convey the degrees of function of the magnitude and direction of interest
liquidity and market risk. rate changes and the size and maturity structure of
zz Monitor the structure and composition of the mismatch position. Bank’s lending, funding and
bank’s asset and liabilities and identify balance investment activities give rise to interest rate risk.
sheet management issues that are leading to Interest rate risk management must be conducted
underperformance. within the context of a comprehensive business plan.
zz Decide on the major aspects of balance sheet
Interest Rate Risk is the current or potential risk to
structure, such as maturity and currency mix of
the interest rate sensitive assets and liabilities of a
assets and liabilities, mix of wholesale versus
bank’s balance sheet as well as the off-balance sheet
retail funding, deposit mix etc
items arising out of adverse or volatile movements
zz Decide on how to respond to significant, actual in market interest rate. Volatile movements of
and expected increases and decreases in market interest rate adversely affect the value of
required funding interest rate sensitive assets and liabilities that
zz Review maturity profile and mix of assets and consequentially results in the loss of equity value
liabilities also affects the earnings of the bank. An effective
zz Articulate interest rate view of the bank and risk management process that maintains interest
decide on balance sheet strategy rate risk within prudent levels is essential to the
zz Approve and periodically review the transfer safety and soundness of the bank. The ALCO has
pricing policy of the bank been monitoring continuously about the market
condition as well as the bank’s interest rate on both
zz Evaluate market risk involved in launching of new
deposits & lending.
products
zz Review deposit-pricing strategy, and However, Bank has been segregated both the interest
rate sensitive assets and liabilities into different time
zz Review contingency funding plan for the bank
buckets to find the asset/liability mismatch. The
Liquidity Risk Management duration gap analysis is also being done on quarterly
Liquidity Risk is the potential for loss to a bank basis. DGAP is found positive for all the quarters of
arising from either its inability to meet its obligations 2016 which indicates that assets are more price
as they fall due or to fund increases in assets without sensitive than liabilities, on average. Thus, when
incurring unacceptable cost or losses. Liquidity risk interest rates shifted downward by 1%, assets will fall
is often triggered by the consequences of other proportionately less in value than liabilities and the
financial risks such as credit risk, interest rate risk, market value of equity will rise accordingly.
foreign exchange risk, etc. Existing Interest Rate Risk assessment structure
The intensity and sophistication of liquidity risk and control system of the Bank are as follows:
management processes depend on the nature, size zz Duration Gap Analysis: Calculate net GAP per
and complexity of a bank’s activities. Sound liquidity time period and the cumulative GAP. Determine
risk management employed in measuring, monitoring maximum tolerated GAP as determined by the
and controlling liquidity risk is critical to the viability of ALCO policy.
the bank. Our liquidity risk management procedures zz Market Value Analysis
are comprehensive and holistic. Responsibility of
The following ratios are good indicators of Interest
managing and controlling liquidity of the bank lies with
Rate Risk analysis & these are calculated on regular
Asset Liability Committee (ALCO) and the committee
basis :
meets at least once in every month. Asset Liability
zz Net Interest Income
Management (ALM) desk of the treasury function
zz Net Interest Margin
closely monitors and controls liquidity requirements
zz Interest Earning Asset to Total Assets
on a daily basis by appropriate coordination of
funding activities and they are primarily responsible zz Average Interest Rates of Loan
for management of liquidity in the bank. A monthly zz Average Interest Rates of Deposit etc.
projection of fund flows is received in ALCO meeting zz Value at Risk (VaR) is calculated
regularly.
zz Sensitivity Analysis
Interest Rate Risk Management zz Maturity profile Analysis
Interest rate risk is the potential impact on a bank’s zz Stress Testing is conducted
earnings and net asset values due to changes in
market interest rates. Interest rate risk arises when 3. Foreign Exchange Risk Management
a bank’s principal and interest cash flows (including Foreign Exchange risk arises from adverse movements
final maturities), both on- and off-balance sheet, have in exchange rates in the market.
REPORT ON
Market Risk arises when potential effect on market market positions and check for differences with
component such as interest rates, foreign exchange system generated/back-office reports
rates, equity prices and commodity prices. zz Sending dealing information to Back Office
It is a part of the market risk management activity to through deal slip (if the deal is not done throuh
identify and specify all relevant market factors for automated system)
each risk-taking unit and to take them into zz Performing money market activities
consideration in the establishment of the independent zz Security/fixed income trading (if it is a PD)
market risk limit frameworks. zz Estimate daily P&L and work with reporting unit
Treasury Division of the bank measured and monitored in resolving any difference
the Foreign exchange risks. The bank has formulated
a treasury manual which has been implemented for Value at Risk (VaR) Analysis
managing foreign exchange risks as per directives Value at Risk (VaR) is a statistical estimate of an upper
of Bangladesh Bank,. The functions of treasury boundary, within a specified confidence level, of the
front office, mid office and back office have been potential amount a trading position or portfolio could
segregated. The operational guidelines have also been decrease in value during the time needed to close
formulated specifying the roles and responsibilities out a position. Specifically, it is a measure of potential
of front, mid and back office so that various foreign loss from an event in a normal, everyday market
exchange transactions can be conducted according environment.
to the policy guidelines of the Bangladesh Bank and Risk related to the uncertainty of an Financial
the risks can be measured, monitored and mitigated. Institution’s earnings on its trading portfolio. Risk
Value-at-Risk (VAR): VAR is intended to estimate related to the uncertainty of an Financial Institution’s
the potential decline in the value of a position or a earnings on its trading portfolio caused by change in
portfolio, under normal market conditions, within market conditions.
a defined confidence level, and over a specific time Methods of Calculating VaR
period.
The methods of calculating VaR are as follows:
Front Office: The front office or the dealing room acts zz The Variance – Covariance Method
as the bank’s interface to international and domestic
zz Historical Method
financial market. The front office is the center for
market risk management activities in the bank. The zz Monte Carlo Simulation
front office is the unit that interacts with the market Among the three method the Variance - Covariance
within the generally approved framework and the method is simple to apply and fairly straight forward
authority given to dealers by the Board of Directors of to explain. Also data sets for its use are immediately
the bank. available. That’s why the bank is advised to follow
Variance – Covariance Method for measuring VaR.
Functions of Treasury Front Office
Back Office: The market risk exposure and particularly
zz Statutory management
front office activities are monitored by the back
zz Optimization of risk return through specialization office. The back office is responsible for monitoring
and management of deal confirmation, deal settlement, funding to
zz Funding of the Balance Sheet at optimum prices nostro account, maintenance and reconciliation
zz Proposing interest rate matrix to the ALCO of nostro account etc. Monitoring and reporting
of all limits including open positions, counterparty
zz Proposing various investment options to the
settlement, overall limits and portfolio limits are also
ALCO
the responsibility of the back office.
zz Analyze various economic trends and propose
zz Balance Sheet Strategy to the ALCO Functions of Treasury Back Office
zz Quotation of various foreign exchange and zz Input, verification and settlement of deals
interest rates to customers zz Receiving and sending of deal confirmation
zz Dealing in foreign exchange for position covering Certificates
as well as for own account trading zz Preparation of currency positions (of previous day-
zz Various funding activities through various end) and report to traders prior to commencement
Derivatives of day’s dealings
zz Provide structured treasury solutions to zz Reconciliation of currency positions
customer zz Rate appropriateness function for all deals done
zz Remain vigilant for any arbitrage opportunities zz Revaluation of all foreign exchange positions at a
zz Marketing activities for future business growth pre-determined frequency
zz Record/maintain all foreign exchange and money zz Managing discrepancies and disputes
REPORT ON
123
zz Daily calculation for adherence to statutory reviews the policies & procedures as well as the
maintenance structure assigning clear responsibility, authority and
zz Reconciliation of nostro accounts reporting relationship.
zz Reconciliation of vostro accounts
Objective of Internal Control
zz Claim/pay good value date effect of late The primary objective of internal control system is
settlements to help the bank perform in a sound and prudent
Mid Office: The mid office is responsible to manner with minimal resources. Through an effective
independently monitor measure and analyze risks internal control system the bank shall identity its
inherent in treasury operations of the bank. The mid operational weakness and take appropriate measures
office performs risk review function of day-to-day to overcome the same. The main objectives of the
activities and prepare various risk reports to check internal controls are categorized as follows:
whether there is any violation or not and submit the zz Operations Objectives: It relates to the
risk reports to the top management. If there is any effectiveness and efficiency of the Bank by using
violation of activities of TFO & TBO the mid office its assets and others resources for achievement
informs the concerned department to take necessary of the bank’s basic mission and vision.
measures. zz Reporting Objectives: It addresses
Responsibilities of Treasury Mid Office : the preparation of timely, accurate and
zz Limits monitoring and managing limit comprehensive reporting, financial and non-
financial, internal and external.
zz Adherence to various internal as well as regulatory
policies zz Compliance Objective: It demonstrates that all
zz Minimization of all risks
banking activities are performed in compliance
with applicable rules and regulations of regulatory
zz Monitoring & management of various foreign
bodies, own policy, plan and procedures.
exchange and money market positions
zz Monitoring & management of various cash flows The Internal Control & Compliance (ICC) Division is
and cash positions working independently to evaluate the Internal Control
System of the Bank so as to ensure good governance,
zz Proposals/renewals for various internal limits
transparency & accountability. The ICC Division is
zz Monitor for trader’s adherence to various internal conducting comprehensive internal audit of the
and regulatory limits branches as well as different divisions/departments
zz Monitor for trader’s adherence to various of Head Office ongoing basis. The Division reviews
counterparty limits the activities of branch’s Internal Control Unit (ICU)
zz Prepare, monitor and manage all balance sheet continuously through different control processes
gaps to minimize irregularities/ lapses, to prevent fraud/
zz Report any occurrence of crossing limit forgery and to control existing/emerging risks. The
significant deficiencies identified by the audit team
zz Various internal and regulatory reporting
are placed before the senior management as well as
the Audit Committee of the Board. Audit Committee
4. Internal Control and Compliance Risk Management
of the Board regularly monitors the functions of
Internal Control is the process affected by Board
Internal Control & Compliance Division with their
of Directors, Senior Management and all levels
necessary suggestions/recommendations and also
of personal designed to provide reasonable
reports to the Board of Directors from time to time.
assurance regarding the achievement of objective
in the effectiveness and efficiency of operation, the Risk Based Internal Audit (RBIA) is being carried
reliability of financial reporting and Compliance with out annually for risk profiling/categorization of the
applicable laws, regulations and internal policies. branches based on the level of its various risks. Up-
gradation of existing RBIA format is under process
For safeguarding the organization’s assets, internal
which will be finalized soon. Strong monitoring &
control primarily aim to support the management
close supervision ensure functional efficiency of
in the identification and mitigation of those risks
the branches & different divisions/departments of
which the Bank may encounter in the fulfillment of its
Head Office by maintaining control environment at
business objectives.
operational level. Compliance culture is developed
The internal control system of the bank ensures that by strict adherence to statutory & regulatory
all the necessary policies, guidelines and manuals requirement and also bank’s own policy & procedures.
are in place and all concerns are following the same
By enforcing effective & sound Internal Control
strictly and meticulously including Departmental
System, ICC is performing its activities for further
Control Function Check List (DCFCL). To monitor the
improving overall work performance of the bank
overall effectiveness of the internal control system
towards achieving its ultimate objectives.
the Management Committee (MANCOM) regularly
REPORT ON
5. Money Laundering Risk Management g) The compliance system and controls quickly adapt
Money Laundering (ML) and Terrorist Financing (TF) to changes in international lists;
are major threats to the world’s Financial Service
h) The compliance system and controls effectively
Industry. IFIC Bank is pledge-bound not to allow its
identify and appropriately report suspicious
banking channel to be used by any criminal, terrorist
activity.
or network of terrorists to carry out subversive
activities or militancy in the country and elsewhere. In addition, the management of money laundering risk
The Bank is committed to ensuring the best corporate has been extensively described in the “Managing Core
governance practices and aims at protecting the Bank Risks in Banking: Guidance Notes on Prevention of
and its employees, shareholders, management and Money Laundering” issued by Bangladesh Bank.
customers from the adverse effect of ML and TF IFIC Bank Limited is regularly arranging Training
“Guidelines on Prevention of Money Laundering” Programs on Prevention of Money Laundering &
and “Policy for Combating Financing of Terrorism” Combating Financing of Terrorism for all categories
has been formulated for strict compliance as per of Executives/Officers of the Bank. During the year
directives of Bangladesh Bank 2017, the Bank arranged several training courses
on Prevention of Money Laundering & Combating
The Chief Anti-Money Laundering Compliance Officer
Financing of Terrorism where Executives/ Officers of
(CAMLCO) regularly submits status report to the
the Bank attended.
competent authorities as per regulatory requirement
in respect of hundi activities, abnormal transactions, 6. Information & Communication Technology Risk
Suspicious Transaction Report (STR), Cash Transaction Management
Report (CTR), Know Your Customer (KYC) Procedure, Information Technology in Banks has greatly
Transaction Monitoring Report, Structuring Monitoring contributed to improve operational efficiency,
Report, Half Yearly Report on Self Assessment transparency, speed and accuracy in banking
Reports of branches & independent testing procedure transactions. The customers are benefited by getting
conducted by ICC Division and similar other areas. The a number of options for doing banking through a
bank has been complying all the rules and regulations different delivery channels according
on Anti-Money Laundering (AML) and Combating
Financing of Terrorism (CFT) issues. to their convenience. The business people are also
getting benefit of faster realization of receivables
Characteristics of effective AML risk management from their clients and making payments to their
The characteristics of effective AML risk management suppliers instantly and securely through various
include the following: established payment channels.
a) Management fully understands the aspects of This year, the Bank has scaled its technology
AML risk and exhibits strong commitment to infrastructure to create a contemporary, secure and
compliance; robust infrastructure and taken several initiatives
to protect its information assets from cyber threats.
b) When deficiencies are identified, management
IFIC has established its Data Center (DC) and
promptly implements meaningful corrective
Disaster Recovery Site (DRS) keeping in mind future
action
expandability to meet emerging needs
c) Authority and accountability for compliance are
and for high availability. During setup of Data Center,
clearly defined and enforced, including designation
environmental security has been provided highest
of a qualified AML compliance officer;
priority. This year more manpower (experienced and
c) The Board has approved an AML compliance fresh) has been recruited for capacity expansion of IT.
program that includes adequate policies, The Core Banking Software (CBS) has been upgraded
procedures, controls, and information systems to its latest release to enhance existing features and
functionalities and ensure transaction security.
d) Training is appropriate, effective, covers applicable
personnel, and necessary resources have been The Bank has reviewed its ICT infrastructure and
provided to ensure compliance; taken pragmatic steps to procure state of the art
IT Security solutions (Hardware and Software) for
e) Effective customer identification processes and
implementation of multi-layer security with multiple
account opening procedures are in place;
security solutions for Network, Mailing System, Web/
f) Management has identified and developed Internet and the end users devices. Various policies
controls that are applied appropriately to high and procedures including ICT Security Policy have
risk areas, products, services, and customers of been revised to minimize
the bank, and there are few or no instances of
technological and operational risks and comply with
unreported suspicious activity, unreported large
ICT Security Guideline-2015 of Bangladesh Bank. The
currency transactions, structured transactions, or
Business Continuity Plan (BCP) and Disaster Recovery
substantive violations of law;
Plan have also been revised. The SWIFT payment
REPORT ON
125
channel has been reviewed and restructured through and off- balance sheet positions of the bank
separating its network connectivity from Office LAN would be negatively affected with the change in
and internet access of SWIFT user PCs and file sharing the interest rates.
with other PCs have also been blocked. Several training zz Exchange Rate Risk: The stress test for exchange
on ICT Security and Risk Management has been rate assesses the impact of change in exchange
arranged throughout the year at the Training Institute rate on the value of equity. To assess foreign
of the Bank as part of awareness buildup among the exchange risk the overall net exchange position
employees of the Bank. As the business processes of the bank including the on-balance sheet and
and initiatives are now driven by IT, therefore, the off-balance sheet exposures are charged by
Bank will continue investing in IT to ensure sound and
the weightage of 5%, 10% and 15% for minor,
secure IT operation.
moderate, and major levels respectively.
Stress Testing zz Equity Price Risk: The stress test for equity price
Stress Testing is one of the effective and popular ways risk assesses the impact of the fall in the stock
to alert bank management with regard to adverse market index.
unexpected outcomes related to variety of risks and zz Liquidity Risk: The liquidity test shows how many
provides an indication how much capital adequacy days a bank would be able to survive a liquidity
ratio (CAR) might be needed to absorb losses, if any drain without resorting to liquidity from outside.
shocks occur. zz Combined Shock: IFIC bank assesses combined
Stress Testing is a risk management technique used shock by aggregating the results of credit shock,
to evaluate the potential effects on an institution’s exchange rate shock, equity shock and interest
financial condition of a specific event and/ or rate shock.
movement in a set of financial variables. It refers to
IFIC Bank prepares Stress Testing Report based
the process to cover multiple risk measures across
on the financials of the bank on quarterly basis and
categories and complements traditional risk models.
submit the report to Bangladesh Bank as well Board
The traditional focus of stress testing relates to
of Directors. The result sheet of stress testing reflects
exceptional but plausible events.
the strength of the bank to absorb the shocks with
Stress Testing Process the capital of different risk profiles of the bank.
Stress testing process includes

zz Identification of specific vulnerabilities or areas
of concern;
zz Construction of a scenario;
zz Performing the numerical analysis;
zz Considering the numerical analysis; and
zz Summarizing and interpreting the results.
Stress Testing is a risk management tool that helps
in assessment of the risks quantifies the resilience
towards shock events and helps to manage the shock
results. Stress Testing are generally of two categories
and concepts i.e. – Simple Sensitivity Analysis and
Scenario Tests. Now, we follow the Simple Sensitivity
Analysis concept as per Bangladesh Bank Guidelines.
Stress Testing is carried out at three different shock

levels
zz Minor Level Shocks
zz Moderate Level Shock; and
zz Major Level Shocks
The following risk factors are measured while

conducting Stress Testing
zz Credit Risk: Stress test for credit risk assesses the
impact of increase in the level of non-performing
loans of the bank.
zz Interest Rate Risk: Interest rate risk is the
potential that the value of the on-balance sheet
REPORT ON
CORPORATE
SOCIAL
RESPONSIBILITY
DIRECTORS’
127
Corporate Social Responsibility
Our Bank undertook following activities in the field of CSR in 2017
IFIC Bank provided blankets for of

the The Bank rewarded two winners
cold-hit people to Prime Minister
’s IFIC Bank Shahittyo Purosker.
Relief Fund
The Bank
Shuchona provided
Foundatio money to
n fo
autistic ch r the welfare of
ildren.
The Bank handed over a donation to

Prime Minister’s Education Support Trust
).
(Prodhanmontrir Shikhkha Shohayota Trust
Madhyamik Bidyaloy
Dhamura Bohumukhi
for providing stipends to
received donations d.
ent of their playgroun
students and developm
The Bank do
Bangaband nated money
hu Sheikh M to
ujibur Rahm
Memorial Tr an
ust.
Biswashahitya Kendra received

a
donation to support their
educational activities.
The Bank donated money to a day edia projecto

rs to
care centre for the children of e B an k do nated multim & C ollege .
Banks’ employees.
Th
ba gh Po lice Line School
Rajar
CORPORATE
128 Annual Report 2017 SOCIAL RESPONSIBILITY
PRODUCTS AND
SERVICES
Deposit Products
Current Account Millionaire Dream Plan Monthly Income Scheme

Savings Account (MDP) Double Return Deposit
Smart Savings Plan Special Notice Scheme
Deposit-SND Freedom Flexi DPS
IFIC Amar Account
Fixed Deposit IFIC Aagami
School Savings Plan
Receipts-(FDR)
Sanchita-Female IFIC Corporate plus
Pension Savings
Payroll Savings Scheme-PSS
Loan Products
Term Loan (Industrial) Home Renovation/ Interior Commercial House

Term Loan (Others) Decoration Loan Building Loan
Loan General Medical Loan Bidders Loan
OD-Working Capital Loan Holiday Loan Contractors Loan
Amar Account OD Premium Overdraft Easy Commercial Loan
Easy Loan Salary Loan Lease Finance
Consumer Durable Loan Credit Card IFIC -Subornogram
Parua (Educational Loan) IFIC Krishi Shilpo Krishi Soronjam Rin
IFIC Home Loan IFIC Shilpo Sohay Sech Soronjam Rin
IFIC Peshajeebi Loan IFIC Shilpo Shongjog IFIC-Green Earth
Auto Loan IFIC-Prantonari IFIC-Joibo Shakti
Any Purpose Loan WEC Loan Protyasha Fire Fighting & Safety
Equipment
Marriage Loan WEC Loan Joyeeta
CNG Conversion Loan Transport Loan
DIRECTORS’
129
FINANCIAL
STATEMENTS
DIRECTORS’
Gg, †R, Av‡e`xb GÛ †Kvs
PvU©vW© GKvD‡›U›Um&
M. J. ABEDIN & CO
CHARTERED ACCOUNTANTS
Telephone Off : +880-2-9675340, 9666508 National Plaza (3rd Floor)

Fax : +880-2-58616524 109, Bir Uttam C.R. Datta Road,
E-mail : [email protected] Dhaka-1205, Bangladesh
Web Site : www.mjabedin.com
Auditors’ Report
To the Shareholders of IFIC Bank Limited
Report on the Financial Statements
We have audited the accompanying consolidated financial statements of IFIC Bank Limited and its
subsidiaries (the “Group”)as well as the separate financial statements of IFIC Bank Limited(the “Bank”), which
comprise the consolidated balance sheet and the separate balance sheet as at 31 December 2017 and the
consolidated and separate profit and loss accounts, consolidated and separate statements of changes in
equity and consolidated and separate cash flow statements for the period then ended and a summary of
significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements and Internal Controls

Management is responsible for the preparation of consolidated financial statements of the Group and also
separate financial statements of the Bank that give a true and fair view in accordance with Bangladesh
Financial Reporting Standards as explained in note 2.1 and for such internal control as management determines
necessary to enable the preparation of consolidated financial statements of the Group and also separate
financial statements of the Bank that are free from material misstatement, whether due to fraud or error.
The Bank Company Act, 1991 as amended 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.
Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated financial statements of the Group and
the separate financial statements of the Bank based on our audit. We conducted our audit in accordance
with Bangladesh Standards on Auditing. Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial
statements of the Group and separate financial statements of the Bank are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the consolidated financial statements of the Group and separate financial statements of the Bank. The
procedures selected depend on the auditors’ judgment, including the assessment of the risks of material
misstatement of the consolidated financial statements of the Group and separate financial statements of the
Bank, whether due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity’s preparation of consolidated financial statements of the Group and separate financial
statements of the Bank that give a true and fair view 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 entity’s
internal control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall presentation
of the consolidated financial statements of the Group and also separate financial statements of the Bank.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the consolidated financial statements of the Group and also 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 2017, and of its consolidated and separate financial performance and
its consolidated and separate cash flows for the period then ended in accordance with Bangladesh Financial
Reporting Standards as explained in note 2.1.
An independent member firm of
MOORE STEPHENS
DIRECTORS’
131
INTERNATIONAL LIMITED REPORT Annual Report 2017
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 the following:
(a) we have obtained all the information and explanation which to the best of our knowledge and belief were
necessary for the purposes of our audit and made due verification thereof.
(b) 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:
i) internal audit, internal control and risk management arrangements of the Group and the Bank as
disclosed in note 2.2.6.10 of the financial statements appeared to be materially adequate;
ii) 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 Bank
and its related entities during the year ended 31 December 2017.
(c) financial statements of subsidiary companies of the Bank namely IFIC Securities Limited and IFIC Money
Transfer (UK) Limited have been audited and properly reflected in the consolidated financial statements;
(d) in our opinion, proper books of account as required by law have been kept by the Group and the Bank so
far as it appeared from our examination of those books;
(e) the consolidated balance sheet and consolidated profit and loss account of the Group and the separate
balance sheet and separate profit and loss account of the Bank dealt with by the report are in agreement
with the books of account;
(f) the expenditure incurred was for the purposes of the Bank’s business;
(g) 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
with related guidance issued by Bangladesh Bank;
(h) adequate provisions have been made for advances which are, in our opinion, doubtful of recovery;
(i) the records and statements submitted by the branches have been properly maintained and consolidated
in the financial statements;
(j) the information and explanation required by us have been received and found satisfactory;
(k) Capital to Risk-weighted Asset Ratio (CRAR) as required by the Bangladesh Bank has been maintained
adequately during the year and
(l) we have reviewed over 80% of the risk weighted assets of the bank and we have spent around 4,225
person hours for the audit of the books and accounts of the bank.

Dated: 10 April 2018 M. J. ABEDIN & CO

Dhaka Chartered Accountants
DIRECTORS’
INTERNATIONAL FINANCE INVESTMENT AND COMMERCE BANK LIMITED
Consolidated Balance Sheet
as at 31 December 2017
Amount in BDT
Particulars Note 31 December 2017 31 December 2016
PROPERTY AND ASSETS

Cash 15,487,553,511 14,079,419,866
Cash in hand (including foreign currency) 3.a 2,251,768,572 2,018,405,559
Balance with Bangladesh Bank and its agent bank(s) (including 3.b 13,235,784,939 12,061,014,307
foreign currency)
Balance with other banks and financial institutions 4.a 10,623,519,846 9,008,977,771
In Bangladesh 4.a(i) 8,068,534,922 7,592,399,021
Outside Bangladesh 4.a(ii) 2,554,984,924 1,416,578,750
Money at call and on short notice 5 3,830,000,000 -
Investments 29,290,877,363 26,279,460,893

Government securities 6.a 23,943,582,942 20,754,752,878
Other investments 6.b 5,347,294,421 5,524,708,015
Loans and advances 183,296,111,106 141,258,758,320

Loans, cash credit, overdrafts etc. 7.a 171,593,194,706 132,138,872,955
Bills purchased and discounted 8.a 11,702,916,400 9,119,885,365
Fixed assets including premises, furniture and fixtures 9.a 3,539,338,093 3,498,780,629
Other assets 10.a 10,277,591,453 5,752,191,395
Non-banking assets 11 373,474,800 373,474,800
Total assets 256,718,466,172 200,251,063,674
LIABILITIES AND CAPITAL

Liabilities
Borrowing from other banks, financial institutions and agents 12.a 8,473,580,748 6,161,734,496
Subordinated debt 13 3,500,000,000 3,500,000,000
Deposits and other accounts 14.a 200,148,679,835 160,132,621,436

Current deposit and other accounts 30,611,131,194 20,040,265,832
Bills payable 2,238,152,090 2,075,645,107
Savings bank deposits 27,058,321,723 27,886,177,596
Fixed deposits 140,241,074,828 110,130,532,901
Other liabilities 15.a 22,492,022,640 16,534,308,924

Total liabilities 234,614,283,223 186,328,664,856
Capital/Shareholders’ equity
Paid up capital 16.2 11,953,024,420 5,638,219,070
Statutory reserve 17 5,124,540,729 4,649,226,843
General reserve 18 155,071,397 155,071,397
Revaluation reserve against securities 19.a 6,229,549 13,387,424
Revaluation reserve against fixed assets 20 115,314,704 115,314,704
Foreign currency translation reserve 20.a 126,200,022 (27,858,562)
Surplus in profit and loss account 22 4,623,795,459 3,379,031,381
Attributable to equity holders 22,104,176,280 13,922,392,257
Non-controlling interest 23 6,669 6,561
Total shareholders’ equity 22,104,182,949 13,922,398,818
Total liabilities and shareholders’ equity 256,718,466,172 200,251,063,674
FINANCIAL
133
STATEMENTS Annual Report 2017
OFF-BALANCE SHEET ITEMS

Contingent liabilities 24 58,620,180,261 52,602,485,841
Acceptances and endorsements 24.1 19,010,992,711 15,524,365,117
Letters of guarantee 24.2 10,475,384,676 9,742,638,146
Irrevocable letters of credit 24.3 19,364,242,284 17,535,059,809
Bills for collection 24.4 9,769,560,590 9,800,422,769
Other contingent liabilities - -
Other commitments - -
Documentary credit and short term trade -related transactions - -
Forward assets purchased and forward deposit placed - -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other - -
commitments
Total off-balance sheet exposures including contingent liabilities 58,620,180,261 52,602,485,841
These financial reports should be read in conjunction with the annexed notes.
Managing Director & CEO Director Director Director
Signed as per our annexed report of same date
10 April 2018 M. J. Abedin & Co.

FINANCIAL
134 Annual Report 2017 STATEMENTS
Consolidated Profit and Loss Account
for the year ended 31 December 2017
Amount in BDT
Particulars Note 2017 2016
Interest income 26.a 15,039,273,910 12,626,234,009
Interest paid on deposits, borrowings etc. 27.a 9,439,023,057 8,221,339,559
Net interest income 5,600,250,853 4,404,894,450
Investment income 28.a 2,105,410,059 2,081,237,711
Commission, exchange and brokerage 29.a 1,717,435,369 1,552,391,886
Other operating income 30.a 535,737,818 557,424,783
4,358,583,246 4,191,054,380
Total operating income 9,958,834,099 8,595,948,830
Salary and allowances 31.a 2,600,408,127 2,536,189,910
Rent, taxes, insurance, electricity etc. 32.a 702,972,532 706,221,522
Legal expenses 33.a 11,625,374 11,200,649
Postage, stamp, telecommunication etc. 34.a 76,477,658 92,005,382
Stationery, printing, advertisement etc. 35.a 433,195,870 265,945,744
Managing Director’s salary 36 15,120,000 15,120,000
Directors’ fees 37.a 1,621,500 1,495,750
Auditors’ fees 38.a 1,866,696 2,251,927
Charges on loan losses 244,828,037 281,172,341
Depreciation and repair of bank’s assets 39.a 495,842,413 557,399,835
Other expenses 40.a 829,823,238 667,929,672
Total operating expenses 5,413,781,445 5,136,932,732
Operating profit 4,545,052,654 3,459,016,098
Share of profit of joint ventures/associates 40.b. (iii) 355,283,995 382,821,516
Profit before provision 4,900,336,649 3,841,837,614
Provision for loans, investments & other assets 41.a
Specific provision 2,231,656,980 735,235,892
General provision (80,431,752) 505,554,055
Provision for off-shore banking unit 13,148,354 (4,712,963)
Provision for off-balance sheet exposures 60,176,944 59,810,890
Provision for diminution in value of investments (106,366,393) 51,923,927
Provision for other assets 19,525,474 24,120,508
Total provision 2,137,709,607 1,371,932,309
Profit/(Loss) before taxes 2,762,627,042 2,469,905,305
Provision for taxation
Current tax 42.a 807,210,974 717,569,284
Deferred tax expense/(income) 42.b (441,248,283) 169,805,699
365,962,691 887,374,983
Net profit after taxation 2,396,664,352 1,582,530,322
Net profit after tax attributable to:
Equity holders of the Bank 2,396,664,244 1,582,530,314
Non-controlling interest 108 8
Retained earnings brought forward from previous year 3,379,031,381 2,817,321,961
Add/(less): Adjustment due to issuance of shares of subsidiaries 23.1 - 968
Add: Net profit after tax (attributable to equity holders of the Bank) 2,396,664,244 1,582,530,314
Profit available for appropriation 5,775,695,625 4,399,853,243
Appropriations:
Statutory reserve 475,313,886 416,726,963
General reserve - -
Dividend 676,586,280 604,094,900
1,151,900,166 1,020,821,863
Retained surplus 4,623,795,459 3,379,031,381
Earnings Per Share (EPS) 48.a 2.34 1.79


FINANCIAL
135
Consolidated Cash Flow Statement
Amount in BDT
A. Cash flows from operating activities

Interest received 16,998,394,318 14,545,532,739
Interest payments (8,984,625,603) (8,307,226,698)
Dividend received 65,028,135 75,411,582
Fees and commission received 1,761,868,025 1,581,266,572
Recoveries of loans and advances previously written-off 106,277,295 433,046,280
Cash payments to employees (2,565,528,127) (2,480,309,910)
Cash payments to suppliers (482,189,662) (341,150,987)
Income taxes paid (840,794,890) (1,054,531,613)
Receipts from other operating activities 43.a 580,115,746 573,850,649
Payments for other operating activities 44.a (1,763,578,270) (1,613,974,673)
Operating cash flows before changing in operating assets and liabilities 4,874,966,967 3,411,913,941
Increase/(decrease) in operating assets and liabilities
Statutory deposits - -
Loans and advances to other banks - -
Loans and advances to customers (42,754,900,754) (15,040,588,693)
Other assets 46.a (371,172,827) (1,518,288,761)
Deposits from other banks 20,224,643,000 (783,680,000)
Deposits from customers 19,345,508,796 14,274,274,321
Other liabilities 47.a 242,678,067 351,055,163
(3,313,243,718) (2,717,227,970)
Net cash flows from/(used in) operating activities 1,561,723,249 694,685,971
B. Cash flows from investing activities

Net proceeds/(payments) from sale/(purchase) of Government securities (3,195,532,139) 2,809,897,359
Net proceeds/(payments) from sale/(purchase) of securities 629,772,038 451,192,822
Purchase of property, plant & equipment (337,425,131) (622,660,050)
Proceeds from sale of property, plant & equipment 5,301,340 6,287,392
Net cash flows from/(used in) investing activities (2,897,883,892) 2,644,717,523
C. Cash flows from financing activities

Borrowing from other banks, financial institutions and agents 2,311,846,252 (1,331,720,180)
Receipts from issue of sub-ordinated bond - 3,500,000,000
Payment against lease obligation (3,620,804) (5,394,235)
Receipts from issuance of rights share 5,638,219,070 -
Net cash flows from/(used in) financing activities 7,946,444,518 2,162,885,585
D. Net increase/(decrease) in cash (A+B+C) 6,610,283,876 5,502,289,079
E. Effects of exchange rate changes on cash and cash equivalents 242,847,644 (19,118,617)
F. Opening balance of cash and cash equivalents 23,091,914,737 17,608,744,275
G. Closing balance of cash and cash equivalents (D+E+F) 29,945,046,257 23,091,914,737
Closing cash and cash equivalents 45.a
Cash in hand 2,251,768,572 2,018,405,559
Balance with Bangladesh Bank and its agents bank 13,235,784,939 12,061,014,307
Balance with other banks and financial institutions 10,623,519,846 9,008,977,771
Money at call and on short notice 3,830,000,000 -
Prize bonds 3,972,900 3,517,100
29,945,046,257 23,091,914,737
FINANCIAL
Consolidated Statement of Changes in Equity
Amount in BDT
Revaluation Revaluation Foreign

Surplus in Non-
Statutory General reserve reserve currency
Particulars Paid up capital profit and loss controlling Total
reserve reserve against against fixed translation
account interest
securities assets reserve
Balance as at 1 January 2017 5,638,219,070 4,649,226,843 155,071,397 13,387,424 115,314,704 (27,858,562) 3,379,031,381 6,561 13,922,398,818
Impact of changes in accounting policy - - - - - - - - -
Restated balance as at 1 January 2017 5,638,219,070 4,649,226,843 155,071,397 13,387,424 115,314,704 (27,858,562) 3,379,031,381 6,561 13,922,398,818
Surplus/(deficit) on account of revaluation of investments - - - (7,157,875) - - - - (7,157,875)
Effect of foreign currency translation - - - - - 154,058,584 - - 154,058,584
Net gain and losses not recognized in the profit and loss 5,638,219,070 4,649,226,843 155,071,397 6,229,549 115,314,704 126,200,022 3,379,031,381 6,561 14,069,299,527
account
Net profit for the year - - - - - - 2,396,664,244 108 2,396,664,352
Bonus share issued for the year 2016 676,586,280 - - - - - (676,586,280) - -
Issuance of rights share (1R:1) 5,638,219,070 - - - - - - - 5,638,219,070
Transfer to statutory reserve - 475,313,886 - - - - (475,313,886) - -
Balance as at 31 December 2017 11,953,024,420 5,124,540,729 155,071,397 6,229,549 115,314,704 126,200,022 4,623,795,459 6,669 22,104,182,949
Balance as at 1 January 2016 5,034,124,170 4,232,499,880 155,071,397 41,391,939 115,314,704 (25,350,388) 2,817,321,961 7,521 12,370,381,184
Impact of changes in accounting policy - - - - - - - - -
Restated balance as at 1 January 2016 5,034,124,170 4,232,499,880 155,071,397 41,391,939 115,314,704 (25,350,388) 2,817,321,961 7,521 12,370,381,184
Surplus/(deficit) on account of revaluation of investments - - - (28,004,515) - - - - (28,004,515)
FINANCIAL
Effect of foreign currency translation - - - - - (2,508,174) - - (2,508,174)
Adjustment due to issuance of shares of subsidiaries 968 (968) -
Net gain and losses not recognized in the profit and loss 5,034,124,170 4,232,499,880 155,071,397 13,387,424 115,314,704 (27,858,562) 2,817,322,929 6,553 12,339,868,495
account
Net profit for the year - - - - - - 1,582,530,314 8 1,582,530,322
Bonus share issued for the year 2015 604,094,900 - - - - - (604,094,900) - -

Transfer to statutory reserve - 416,726,963 - - - - (416,726,963) - -
Balance as at 31 December 2016 5,638,219,070 4,649,226,843 155,071,397 13,387,424 115,314,704 (27,858,562) 3,379,031,381 6,561 13,922,398,818
137
Balance Sheet
Amount in BDT
PROPERTY AND ASSETS

Cash 3 15,478,772,582 14,067,154,663
Cash in hand (including foreign currency) 3.1 2,242,987,643 2,006,140,356
Balance with Bangladesh Bank and its agent bank(s) (including 3.2 13,235,784,939 12,061,014,307
foreign currency)
Balance with other banks and financial institutions 4 10,623,519,845 9,008,977,771

In Bangladesh 4.1 8,068,534,921 7,592,399,021
Outside Bangladesh 4 2,554,984,924 1,416,578,750
Money at call and on short notice 5 3,830,000,000 -
Investments 6 27,858,142,242 25,204,524,182

Government securities 6.1 23,943,582,942 20,754,752,878
Other investments 6.2 3,914,559,300 4,449,771,304
Loans and advances 7 179,264,206,747 137,118,111,549

Loans, cash credit, overdrafts etc. 7.1 167,561,290,347 127,998,226,184
Bills purchased and discounted 8 11,702,916,400 9,119,885,365
Fixed assets including premises, furniture and fixtures 9 3,528,384,037 3,487,927,670

Other assets 10 12,292,441,552 7,790,544,123
Non-banking assets 11 373,474,800 373,474,800
Total assets 253,248,941,805 197,050,714,758

Liabilities
Borrowing from other banks, financial Institutions and agents 12 8,473,580,748 5,827,168,923
Subordinated debt 13 3,500,000,000 3,500,000,000
Deposits and other accounts 14 200,205,665,479 160,155,006,094

Current deposit and other accounts 14.1 30,668,116,838 20,062,650,490
Bills payable 14.2 2,238,152,090 2,075,645,107
Savings bank deposits 14.3 27,058,321,723 27,886,177,596
Fixed deposits 14.4 140,241,074,828 110,130,532,901
Other liabilities 15 20,530,574,923 14,728,215,189

Total liabilities 232,709,821,150 184,210,390,206
Capital/Shareholders’ equity
Paid up capital 16.2 11,953,024,420 5,638,219,070
General reserve 18 155,071,397 155,071,397
Revaluation reserve against securities 19 6,229,549 13,387,424
Revaluation reserve against fixed assets 20 115,314,704 115,314,704
Surplus in profit and loss account 21 3,184,939,855 2,269,105,114
Total shareholders’ equity 20,539,120,655 12,840,324,552
FINANCIAL
OFF-BALANCE SHEET ITEMS

Contingent liabilities 24 58,620,180,261 52,602,485,841
Irrevocable letters of credit 24.3 19,364,242,284 17,535,059,809
Other contingent liabilities - -
Other commitments - -
Documentary credit and short term trade -related transactions - -
Forward assets purchased and forward deposit placed - -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -
-
Total off-balance sheet exposures including contingent liabilities 58,620,180,261 52,602,485,841

FINANCIAL
139
Profit and Loss Account
Amount in BDT
Interest income 26 14,924,359,151 12,557,119,949
Interest paid on deposits, borrowings, etc. 27 9,434,132,813 8,182,432,849
Net interest income 5,490,226,338 4,374,687,100
Investment income 28 2,071,096,827 2,077,195,970
Commission, exchange and brokerage 29 1,667,194,163 1,477,982,991
Other operating income 30 534,037,827 555,812,934
4,272,328,817 4,110,991,895
Total operating income 9,762,555,155 8,485,678,995
Salary and allowances 31 2,577,447,176 2,513,087,117
Rent, taxes, insurance, electricity, etc. 32 687,650,692 690,620,503
Legal expenses 33 9,121,163 7,330,881
Postage, stamp, telecommunication, etc. 34 76,244,922 91,830,999
Stationery, printing, advertisement, etc. 35 432,887,521 265,582,034
Managing Director’s salary 36 15,120,000 15,120,000
Directors’ fees 37 1,472,000 1,352,000
Auditors’ fees 38 1,277,778 1,597,222
Charges on loan losses 244,828,037 281,172,341
Depreciation and repair of bank’s assets 39 492,434,975 554,114,506
Other expenses 40 809,791,856 643,854,488
Total operating expenses 5,348,276,120 5,065,662,091
Profit/(Loss) before provision 4,414,279,035 3,420,016,904
Provision for loans, investments and other assets 41
Specific provision 2,131,656,980 699,685,673
General provision (80,431,752) 505,554,055
Provision for off-shore banking unit 13,148,354 (4,712,963)
Provision for off-balance sheet exposure 60,176,944 59,810,890
Provision for diminution in value of investments (106,366,394) 51,923,927
Other provisions 19,525,474 24,120,508
Total Provision 2,037,709,606 1,336,382,090
Profit/(Loss) before taxes 2,376,569,429 2,083,634,814
Provision for taxation 42
Current tax 750,000,000 700,000,000
Deferred tax expense/(income) (441,165,478) 169,519,042
308,834,522 869,519,042
Net profit after taxation 2,067,734,907 1,214,115,772
Retained earnings brought forward from previous year 2,269,105,114 2,075,811,205
4,336,840,021 3,289,926,977
Appropriations
Statutory reserve 475,313,886 416,726,963
General reserve - -
Dividend 676,586,280 604,094,900
1,151,900,166 1,020,821,863
Retained surplus 3,184,939,855 2,269,105,114
Earnings Per Share (EPS) 48 2.02 1.38


FINANCIAL
Cash Flow Statement
Amount in BDT
A. Cash flows from operating activities

Interest received 16,883,479,561 14,476,418,679
Interest payments (8,979,735,359) (8,268,319,988)
Dividend received 57,296,849 67,961,786
Fees and commission received 1,667,194,163 1,501,859,330
Recoveries of loans and advances previously written-off 106,277,295 433,046,280
Cash payments to employees (2,542,567,176) (2,457,207,117)
Cash payments to suppliers (482,189,662) (341,150,987)
Income taxes paid (796,454,642) (1,026,016,855)
Receipts from other operating activities 43 536,217,165 570,556,210
Payments for other operating activities 44 (1,724,441,334) (1,569,092,154)
Operating cash flows before changing in operating assets and liabilities 4,725,076,860 3,388,055,184
Increase/(decrease) in operating assets and liabilities
Statutory deposits - -
Loans and advances to other banks - -
Loans and advances to customers (42,859,794,573) (14,594,692,885)
Other assets 46 (387,638,876) (1,541,682,833)
Deposits from other banks 20,224,643,000 (783,680,000)
Deposits from customers 19,380,109,782 14,325,164,751
Other liabilities 47 244,452,255 (35,588,429)
(3,398,228,411) (2,630,479,397)
Net cash flows from/(used in) operating activities 1,326,848,448 757,575,787
B. Cash flows from investing activities
Net proceeds/(payments) from sale/(purchase) of Government securities (3,195,532,139) 2,809,897,359
Net proceeds/(payments) from sale/(purchase) of securities 535,212,004 451,192,822
Purchase of property, plant & equipment (337,324,034) (622,044,414)
Proceeds from sale of property, plant & equipment 5,301,340 6,287,392
Net cash flows from/(used in) investing activities (2,992,342,829) 2,645,333,159
C. Cash flows from financing activities

Borrowing from other banks, financial institution and agents 2,646,411,825 (1,373,644,791)
Receipts from issue of sub-ordinated bond - 3,500,000,000
Payment against lease obligation (3,620,804) (5,394,235)
Receipts from issuance of rights share 5,638,219,070 -
Net cash flows from/(used in) financing activities 8,281,010,091 2,120,960,974
D. Net increase/(decrease) in cash (A+B+C) 6,615,515,711 5,523,869,920
E. Effects of exchange rate changes on cash and cash equivalents 241,100,083 (23,876,339)
F. Opening balance of cash and cash equivalents 23,079,649,534 17,579,655,952
G. Closing balance of cash and cash equivalents (D+E+F) 29,936,265,327 23,079,649,534
Closing cash and cash equivalents 45

Cash in hand 2,242,987,643 2,006,140,356
Balance with Bangladesh Bank and its agents bank 13,235,784,939 12,061,014,307
Balance with other banks and financial institutions 10,623,519,845 9,008,977,771
Prize bonds 3,972,900 3,517,100
29,936,265,327 23,079,649,534
FINANCIAL
141
142
Statement of Changes in Equity
Amount in BDT
Revaluation
Revaluation Surplus in
General reserve
Particulars Paid up capital Statutory reserve reserve against profit and loss Total
reserve against fixed
securities account
assets
Balance as at 1 January 2017 5,638,219,070 4,649,226,843 155,071,397 13,387,424 115,314,704 2,269,105,114 12,840,324,552
Impact of changes in accounting policy - - - - - - -
Restated balance as at 1 January 2017 5,638,219,070 4,649,226,843 155,071,397 13,387,424 115,314,704 2,269,105,114 12,840,324,552
FINANCIAL
Surplus/deficit on account of revaluation of investments - - - (7,157,875) - - (7,157,875)
Annual Report 2017 STATEMENTS

Effect of foreign currency translation - - - - - - -
Net gain and losses not recognized in the income statement 5,638,219,070 4,649,226,843 155,071,397 6,229,549 115,314,704 2,269,105,114 12,833,166,677
Net profit for the year - - - - - 2,067,734,907 2,067,734,907
Bonus share issued for the year 2016 676,586,280 - - - - (676,586,280) -
Issuance of rights share (1R:1) 5,638,219,070 - - - - - 5,638,219,070
Transfer to statutory reserve - 475,313,886 - - - (475,313,886) -
Balance as at 31 December 2017 11,953,024,420 5,124,540,729 155,071,397 6,229,549 115,314,704 3,184,939,855 20,539,120,655
Balance as at 1 January 2016 5,034,124,170 4,232,499,880 155,071,397 41,391,939 115,314,704 2,075,811,205 11,654,213,295
Impact of changes in accounting policy - - - - - -
Restated balance as at 1 January 2016 5,034,124,170 4,232,499,880 155,071,397 41,391,939 115,314,704 2,075,811,205 11,654,213,295
Surplus/deficit on account of revaluation of investments - - - (28,004,515) - - (28,004,515)
Net gain and losses not recognized in the income statement 5,034,124,170 4,232,499,880 155,071,397 13,387,424 115,314,704 2,075,811,205 11,626,208,780
Net profit for the year - - - - - 1,214,115,772 1,214,115,772
Bonus share issued for the year 2015 604,094,900 - - - - (604,094,900) -
Transfer to statutory reserve - 416,726,963 - - - (416,726,963) -
Balance as at 31 December 2016 5,638,219,070 4,649,226,843 155,071,397 13,387,424 115,314,704 2,269,105,114 12,840,324,552
Liquidity Statement
Maturity Analysis of Assets and Liabilities
Amount in BDT
Maturity Period
Particulars Total
Up to 1 month 1 to 3 months 3 to 12 months 1 to 5 years Above 5 years
Assets
Cash in hand (including Bangladesh Bank) 3,577,397,000 121,388,815 121,388,814 - 11,658,597,953 15,478,772,582
Balance with other banks and financial institutions 6,173,519,845 4,450,000,000 - - - 10,623,519,845
Money at call and on short notice 3,830,000,000 - - - - 3,830,000,000
Investment 6,148,867,885 4,909,031,451 3,873,922,325 5,268,550,365 7,657,770,217 27,858,142,242
Loans and advances 36,614,728,008 19,665,736,948 52,276,860,247 13,745,948,626 56,960,932,917 179,264,206,747
Fixed assets including premises, furniture and

352,838,404 529,257,606 1,411,353,615 1,234,934,413 3,528,384,037
fixture
Other assets 2,352,804,246 3,807,983,870 2,352,804,246 1,545,617,230 2,233,231,960 12,292,441,552
Non-banking assets - - - 373,474,800 - 373,474,800
Total assets 58,697,316,984 33,306,979,488 59,154,233,238 22,344,944,636 79,745,467,460 253,248,941,805
Liabilities
FINANCIAL
Subordinated debt - - - 1,400,000,000 2,100,000,000 3,500,000,000
Borrowing from other banks, financial institutions

950,928,192 3,069,002,175 4,014,232,069 439,418,312 - 8,473,580,748
and agents
Deposits and other accounts 34,614,075,808 52,365,945,228 41,861,661,553 68,957,623,692 2,406,359,199 200,205,665,479
Other liabilities 1,636,734,755 204,562,382 3,070,003,708 1,952,409,260 13,666,864,819 20,530,574,923

Total liabilities 37,201,738,755 55,639,509,785 48,945,897,330 72,749,451,263 18,173,224,018 232,709,821,150
143
Net liquidity 21,495,578,228 (22,332,530,297) 10,208,335,908 (50,404,506,628) 61,572,243,442 20,539,120,655
Notes to the Financial Statements
as at and for the year ended 31 December 2017
1 Legal Status and Nature of the Bank

1.1 IFIC Bank Limited
IFIC Bank Limited denoted as International Finance Investment and Commerce Bank Limited
(hereinafter referred to as “the Bank” / “IFIC”), started its journey in 1976 at the instance of the
Government as a joint venture between the Government of Bangladesh and sponsors in the private
sector with the objective of working as a finance company. In 1983 when the Government allowed
to open up banking in the private sector, the finance company was converted into a full fledge
commercial bank and incorporated as a public limited company in Bangladesh under the Companies
Act 1913, currently governed under the Banking Companies Act 1991 as amended and rules and
regulations issued by Bangladesh Bank. The registered office and principal place of business of the
Bank is situated at IFIC Tower, 61, Purana Paltan, Dhaka -1000. Its shares are listed with Dhaka Stock
Exchange Limited and Chittagong Stock Exchange Limited. Directors and Sponsors hold 38.67%
share including 32.75% of the Government of the People’s Republic of Bangladesh and the remaining
61.33% share held by the institutions, foreign and general investors.
The Bank has 141 branches and 71 own ATM booths with 88 ATMs as on 31 December 2017. The Bank
has an Off-shore Banking Unit (OBU) located at Dhaka and also two subsidiary companies (note-1.4)
namely IFIC Securities Limited and IFIC Money Transfer (UK) Limited (hereinafter together referred
to as “the Group”). Moreover, the Bank has investment in two joint venture/associate companies
(note-1.5) in abroad namely Nepal Bangladesh Bank Limited, Nepal and Oman Exchange LLC, Oman.
The Bank has also investment in another company in abroad namely MCB Bank Limited, Pakistan
(note-1.6).
1.2 Principal activities and nature of operation
The principal activities of the Bank are to provide all types of commercial banking services, within the
stipulations laid down by the Banking Companies Act 1991 as amended and directives as received
from Bangladesh Bank and other regulatory authorities time to time, through its branches and
alternative delivery channels like ATM Booths and Internet Banking etc. During the financial year
under review, no significant changes in the nature of the principal activities of the Bank to address.
1.3 Off-shore Banking Unit (OBU)
Off-shore Banking Unit (OBU) is a separate business unit of IFIC Bank Limited. Bank obtained
permission for OBU operations from Bangladesh Bank vide its letter no. BRPD (P-3) 744 (104)/2009-
4233 dated 17 November 2009. The unit commenced its operation from 10 May 2010. Presently
the Bank has one Off-shore Banking Unit in Bangladesh. The OBU is governed under the rules and
regulations of Bangladesh Bank. Separate Financial Statements of the Bank have been prepared
including the affairs of OBU. Separate Financial Statements of Off –shore Banking Unit are shown in
Annexure-K.
1.4 Subsidiaries of the Bank
1.4.1 IFIC Securities Limited
IFIC Securities Limited, a fully owned subsidiary company of IFIC Bank Limited was incorporated
as a public limited company in Bangladesh on 2 November 2010 vide certificate of incorporation
no. C-87904/10 having registered office at IFIC Tower, 61, Purana Paltan, Dhaka -1000. The total
paid up capital of IFIC Securities Limited is Tk. 2,200 million divided into 220 million shares of Tk. 10
each; out of which IFIC Bank Limited holds 219,999,400 shares (99.99%). It acquired membership
of Dhaka Stock Exchange Limited for brokerage transaction vide Bangladesh Securities Exchange
Commission (BSEC) certificate no. 3.1/DSE-192/2009/316 dated 1 January 2009. The main objectives
of the company is to carry out the business of stock brokers/ dealers relating to dealing of shares and
securities as well as other services as mentioned in the Memorandum and Articles of Association of
the company. The operation of the company starts on 10 March 2011. Separate Financial Statements
of IFIC Securities Limited are shown in Annexure-L.
1.4.2 IFIC Money Transfer (UK) Limited
IFIC Money Transfer (UK) Limited was incorporated as a private limited company with Companies
House of England and Wales under registration no. 07379137 on 16 September 2010. The total paid
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up capital of IFIC Money Transfer (UK) Limited is GBP 300,000. The company is a wholly owned
subsidiary of IFIC Bank Limited. IFIC Money Transfer (UK) Limited obtained Money Laundering
registration on 17 January 2011 issued by HM Customs and Excise. The company got registration
from Financial Services Authority (FSA) on 16 June 2011 under Payment Services Regulations 2009.
The company commenced its operation on 31 August 2011. The registered office of the company is
located at Ferrari House, 2nd Floor, 102 College Road, Harrow, Middlesex, United Kingdom HAI IES,
London, UK. The Bank has obtained necessary permission from Bangladesh Bank to open the fully
owned subsidiary in UK. Financial Statements of the company are shown in Annexure-M.
1.5 Joint Ventures/Associates of the Bank
1.5.1 Nepal Bangladesh Bank Limited
Nepal Bangladesh Bank Limited (NBBL) was incorporated in Nepal and registered with Office of
Company Registrar (50-050/051, dated 14 January 1994) as a public company limited by shares.
NBBL was established as a joint venture bank with IFIC Bank Limited, Bangladesh. The Bank started
its banking business from 06 June 1994. IFIC has Management & Technical Service Agreement to
provide technical know-how and professional knowledge to strengthen the smooth function of NBBL.
IFIC holds 40.91% shares capital of NBBL of Nepal. The Bank’s total holding is 29,543,243 number of
shares out of 72,190,590 number of shares of the Bank. The face value of the share is NRS 100 each.
Nepal Bangladesh Bank Limited is listed with Nepal Stock Exchange Limited.
1.5.2 Oman Exchange LLC
Oman Exchange LLC, an exchange company incorporated under the laws of the Sultanate of Oman.
Its registered office is Building no. 4699, Way no. 4567, Hamriya, PO Box 114, Post code 994, Hey Al
Mina, Hamriya, Muscat, Sultanate of Oman. It was established in 1985 as a joint venture between IFIC
Bank Limited and Oman Nationals, to facilitate remittance by Bangladeshi wage earners in Oman.
IFIC Bank holds 25% shares and the balance 75% is held by the Omani sponsors. Out of total 11,793
shares of the company, IFIC Bank owns 2,948 shares of which face value is RO 100 per share.
1.6 Investment in MCB Bank Ltd., Pakistan
IFIC Bank had two branches in Pakistan, one at Karachi and the other at Lahore. Karachi Branch was
opened on 26 April 1987, while the Lahore Branch was opened on 23 December 1993.
To meet the Minimum Capital Requirement of the State Bank of Pakistan, Pakistan branches of IFIC
merged with a reputed leasing company named NDLC and renamed the same as NDLC-IFIC Bank
Limited with effect from 02 October 2003 and it was subsequently renamed as NIB Bank Limited
with effect from 28 November 2005. IFIC Bank owned 24,578,800 shares out of total number of
10,302,851,164 shares of NIB Bank Limited. In 13 June 2017, the State Bank of Pakistan has passed
an order to merge of NIB Bank Limited with MCB Bank Limited. Consequently IFIC Bank Limited
entitled 175,508 nos. of shares of MCB Bank Limited against 24,578,800 nos. of shares in NIB Bank
Limited at the swap ratio of 1:140.043 and subsequently regarding this swap, IFIC Bank has taken
necessary approval from Bangladesh Bank.
2 Basis of Preparation and Significant Accounting Policies

2.1 Basis of preparation
2.1.1 Statement of compliance
The separate financial statements of the Bank and the consolidated financial statements of the
Group comprising the Bank, its subsidiaries and its associates, (except for Nepal Bangladesh Bank
Limited, associate of IFIC, its financial statements are prepared in accordance with the regulatory
requirement of Nepal Rashtra Bank), as at and for the year ended 31 December 2017 have been
prepared on a going concern basis in accordance with the “First Schedule” (section 38) of the Banking
Companies Act 1991 as amended, BRPD Circular # 14 dated 25 June, 2003, other Bangladesh Bank
Circulars, International Accounting Standards (IAS) and International Financial Reporting Standards
(IFRS) adopted by the Institute of Chartered Accountants of Bangladesh (ICAB), etc.
The Bank complied with the requirements of following regulatory and legal authorities:
i) The Banking Companies Act, 1991;
ii) The Companies Act, 1994;
iii) Rules and Regulations Issued by Bangladesh Bank;
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iv) Financial Reporting Act 2015;
v) Bangladesh Securities and Exchange Rules 1987, Bangladesh Securities and Exchange
ordinance 1969, Bangladesh Securities and Exchange Act 1993, Bangladesh Securities and
Exchange Commission IPO Rules 2006;
vi) The Income Tax ordinance, 1984;
vii) The Value Added Tax Act, 1991;
viii) Dhaka Stock Exchange Limited (DSE), Chittagong Stock Exchange Limited (CSE) and Central
Depository Bangladesh Limited (CDBL) rules and regulations;
As such the Group and the Bank has departed from those contradictory requirements of IFRSs in
order to comply with the rules and regulations of Bangladesh Bank which are disclosed below:
i) Investment in shares and securities
BFRS: As per requirements of BAS 39: Financial Instruments: Recognition and Measurement,
investment in shares and securities generally falls either under “at fair value through profit and
loss account” or under “available for sale” where any change in the fair value (as measured in
accordance with BFRS 13) at the year-end is taken to profit and loss account or revaluation
reserve respectively.
Bangladesh Bank: As per 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 (portfolio basis); otherwise investments are recognized at
cost.
ii) Revaluation gains/losses on Government securities
BFRS: As per requirement of BAS 39: Financial Instruments: Recognition and Measurement,
where securities will fall under the category of Held for Trading (HFT), any change in the fair value
of those assets are recognized through profit and loss account. Securities designated as Held to
Maturity (HTM) are measured at amortized cost method using effective interest rate.
Bangladesh Bank: According to DOS Circular no. 05 dated 26 May 2008 and subsequent
clarification in DOS Circular 05 dated 28 January 2009, loss on revaluation of Government
securities (T-bills/corded under RT-bonds) which are categorized as held for trading should be
charged through profit or loss account, but any gain on such revaluation should be recorded
under Revaluation Reserve Account. However, at the revaluation loss for that particular held for
trading T-bills/T-bonds. T-bills designated as held to maturity are measured at amortized cost
method but interest income/gain should be recognized through other reserve as a part of equity.
iii) Provision on loans and advances/investments
BFRS: As per BAS 39: Financial Instruments: Recognition and Measurement, an entity should
start the impairment assessment by considering whether objective evidence of impairment
exists for financial assets that are individually significant. For financial assets that are not
individually significant, the assessment can be performed on an individual or collective (portfolio)
basis.
Bangladesh Bank: As per BRPD Circular no. 14 dated 23 September 2012, BRPD circular no.
19 dated 27 December 2012, BRPD circular no. 05 dated 29 May 2013, BRPD circular no. 16
dated 18 November 2014, BRPD circular no. 15 dated 27 September 2017 and BRPD circular
No. 1 dated 20 February 2018 a general provision at 0.25% to 5% under different categories of
unclassified/standard loans has to be maintained regardless of objective evidence of impairment.
Also provision for sub-standard loans, doubtful loans and bad & loss loans has to be provided at
20%, 50% and 100% respectively depending on the duration of past due of loans and advances.
Again general provision at 1% is required to be provided for all off-balance sheet exposures.
Moreover, a provision for Short-Term Agricultural and Micro-Credits has to be provided at the
rate of 5% for ‘sub-standard’ and ‘doubtful’ loans and at the rate of 100% provision for the ‘bad/
Loss’ loans. As per BRPD Circular no.-04 dated 29 January 2015, 1% additional provision have to
be maintained for large restructured loan. Such provision policies are not specifically in line with
those prescribed by BAS 39.
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iv) Recognition of interest in suspense
BFRS: Loans and advances to customers are generally classified as ‘loans and receivables’ as
per BAS 39 and interest income is recognized through effective interest rate method over the
term of the loan. Once a loan is impaired, interest income is recognized in profit and loss account
on the same basis based on revised carrying amount.
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 recognized as income, rather the corresponding
amount transferred/credited to an interest in suspense account and shown as liability in the
balance sheet.
v) Other comprehensive income
BFRS: As per BAS 1: Presentation of Financial Statements, 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 statement.
Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which will
strictly be followed by all banks. The template of financial statements issued by Bangladesh
Bank neither include OCI nor the elements of OCI are allowed to be included in a single OCI
Statement. As such the Bank does not prepare the OCI statement. However, elements of OCI, if
any, are shown in the statements of changes in equity. Furthermore, the above templates require
disclosure of appropriation of profit on the face of profit and loss account.
vi) Financial instruments – presentation and disclosure
In several cases Bangladesh Bank guidelines categories, recognize, measure and present
financial instruments differently from those prescribed in BAS 39. As such full disclosure and
presentation requirements cannot be made in the financial statements as per BFRS 7: Financial
Instruments: Disclosures and BAS 32: Financial Instruments: Presentation.
vii) Financial guarantees
BFRS: As per BAS 39, financial guarantee is a contracts that require an entity to make specified
payments to reimburse the holder for a loss it incurs because a specified debtor fails to make
payment when due in accordance with the terms of a debt instrument. Financial guarantees are
recognized as liability initially and recorded at fair value and the initial fair value is amortized over
the life of the financial guarantee. The liability of financial guarantee is subsequently carried at
the higher of this amortized amount and the present value of any expected payment when a
payment under the guarantee has become probable. Financial guarantees are included within
other liabilities.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, financial guarantees such
as letter of credit, letter of guarantee will be treated as off-balance sheet items. No liability is
recognized for the guarantee except the cash margin.
viii) Cash and cash equivalent
BFRS: As per BAS 7: Statements of Cash Flows, cash and cash equivalents are short-term, highly
liquid investments that are readily convertible to known amounts of cash and which are subject
to insignificant risk of changes in value. Therefore, some items like Balance with Bangladesh
Bank on account of CRR/SLR are not part of cash and cash equivalent as those are not readily
available.
Bangladesh Bank: Some cash and cash equivalent items such as ‘money at call and on short
notice’, treasury bills, Bangladesh Bank bills and prize bond are not shown as cash and cash
equivalents. Money at call and on short notice presented on the face of the balance sheet, and
treasury bills, prize bonds are shown in investments.
ix) Non-banking asset
BFRS: No indication of Non-banking asset is found in any BFRS.
Bangladesh Bank: As per BRPD circular no. 14, there must exist a face item named Non-banking
asset.
x) Cash flow statement
BFRS: The Cash flow statement can be prepared using either the direct method or the 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.
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Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, cash flow is the mixture of
direct and indirect methods.
xi) Balance with Bangladesh Bank: (Cash Reserve Requirement)
BFRS: As per BAS 7, Balance with Bangladesh Bank should be treated as other asset as it is not
available for use in day to day operations.
Bangladesh Bank: Balance with Bangladesh Bank is treated as cash and cash equivalents.
xii) Presentation of intangible asset
BFRS: Intangible asset must be identified, recognized and disclose in the financial statements
as per BAS 38.
Bangladesh Bank: There is no regulation for intangible assets in BRPD circular no. 14 dated 25
June 2003.
xiii) Off-balance sheet items
BFRS: There is no concept of off-balance sheet items in any BFRS; hence there is no requirement
for disclosure of off-balance sheet items on the face of the balance sheet.
Bangladesh Bank: As per BRPD circular no. 14, off balance sheet items (e.g. Letter of credit,
Letter of guarantee etc.) must be disclosed separately on the face of the balance sheet.
xiv) Loans and advances/Investments net off provision
BFRS: Loans and advances/Investments should be presented in the financial statements after
net off provision.
Bangladesh Bank: As per BRPD circular no. 14, provision for loans, advances and investments
are presented separately as liability and can not be netted off against the outstanding balance
of loans, advances and investment.
2.1.2 Basis of measurement
The financial statements of the Group and the Bank have been prepared on historical cost basis
except the following:
- Government Treasury Bills and Bonds considered as ‘Held for Trading (HFT)’ are measured at
present value using mark to market with gains credited directly to revaluation reserve but loss
charged to Profit and Loss Account.
- Government Treasury Bills and Bonds considered as ‘Held to Maturity (HTM)’ at present value
using amortization concept.
- Zero Coupon Bond at present value using amortization concept.
- Land is recognized at cost at the time of acquisition and subsequently measured at fair value
following revaluation model as per BAS 16: Property Plant and Equipment.
2.1.3 Reporting period
These consolidated and separate financial statements cover 1 year from 1 January to 31 December
which has been followed consistently over the period. The reporting period of the subsidiaries
namely IFIC Securities Limited and IFIC Money Transfer (UK) Limited and one of the joint ventures/
associates Oman Exchange LLC is in line with that of the parent i.e. IFIC Bank Limited. The reporting
period of Nepal Bangladesh Bank Limited is as per Nepalese Calendar Year which generally ends
around 15/16 July of each year. Due to that reason the operating results of Nepal Bangladesh Bank
Ltd have been adjusted proportionately in line with the reporting period of its parent i.e. IFIC Bank
Limited during calculation of share of post-acquisition profit from associates/joint ventures in its
consolidated financial statement.
2.1.4 Directors’ responsibility statement
The Board of Directors is responsible for the preparation and presentation of the financial statements
under section 183 of the Companies Act, 1994.
2.1.5 Date of authorization
The Board of Directors has authorized these financial statements for public issue on 10 April 2018.
2.1.6 Functional and presentation currency
The consolidated financial statements of the Group and the separate financial statements of the
Bank are presented in Bangladeshi Taka (BDT/Tk.) which is the Group’s and the Bank’s functional
currency. Functional currency of Off-shore Banking Unit and IFIC Money Transfer (UK) Limited is US
Dollar (USD) and Great Britain Pound (GBP) respectively. Functional currency for two joint ventures/
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associates - Oman Exchange LLC and NBBL is Omani Rial and Nepalese Rupee respectively. Financial
information presented in BDT has been rounded off to nearest integer, except otherwise indicated.
The financial statement and information of the subsidiaries and joint venture/associates whose
functional currency is different than that of IFIC Bank Limited has been translated in the presentation
currency i.e. BDT as per BAS 21: The Effects of Changes in Foreign Exchange Rates, where applicable.
2.1.7 Use of estimates and judgments
In the preparation of the consolidated financial statements of the group and the separate financial
statements of the Bank in conformity with BFRSs requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the measurement of
assets, liabilities, income and expenses. Accordingly, actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimate is revised and in any future periods
affected.
The key estimates, judgments and assumptions are applied to measure the following:
a) Provision for loans, advances and investments
b) Revaluation of land & buildings
c) Deferred tax assets/liabilities
d) Measurement of defined benefit obligation (Provision for gratuity)
e) Provision for expenses
f) Provision for current taxation
g) Contingent Liability (Letter of Guarantee)
2.1.8 Going concern
The Bank has no such reason to assume that it will not be able to continue its operation for
foreseeable future because it has adequate resources in all respects, promising profitability, and
forward looking strategy. For this reason, the directors continue to adopt going concern basis in
preparing the financial statements. The current operations of the Bank provide sufficient funds to
meet the present requirements of its existing businesses and operations.
2.1.9 Basis of consolidated and separate financial statements
The financial statements of the Bank include the Consolidated Financial Statements of the Bank
as a Group of Bank and its subsidiaries and the Separate Financial Statements of the Bank as the
stand-alone entity. The consolidated financial statements include the financial statements of the
Bank and its two subsidiary companies namely, IFIC Securities Limited operating in Bangladesh and
IFIC Money Transfer (UK) Limited operating in United Kingdom made up to the end of the year. The
separate financial statements are derived by combining the financial statements of main operation
of IFIC Bank Limited and the financial statements of Off-shore Banking Unit operating in Bangladesh.
The consolidated and separate financial statements have been prepared in accordance with BAS 27:
Separate Financial Statements and BFRS 10: Consolidated Financial Statements. The consolidated
financial statements are prepared to a common year ended 31 December 2017. Since the reporting
period of one of the joint ventures/associates Nepal Bangladesh Bank Limited is different from that
of the parent so necessary adjustments have been made to the financial results of Nepal Bangladesh
Bank Limited for consolidation. Both consolidated financial statements and separate financial
statements of the Bank comprises Balance Sheet, Profit & Loss Statement, Cash Flow Statement,
Statement of Changes in Equity and relevant notes and disclosures.
2.1.9.1 Subsidiary
Subsidiary is the entity 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 entity, so as to obtain
economic benefits from its activities.
The consolidated financial statements incorporate the financial statements of IFIC Bank Limited
and financial statements of subsidiary companies from the date that control commences until the
date that control ceases. The financial statements of such subsidiary companies are incorporated
on a line by line basis and investment held by the bank is eliminated against the corresponding share
capital of subsidiaries in the consolidated financial statements.
2.1.9.2 Transactions eliminated on consolidation
All intra-group transactions, balances and any unrealized income and expenses arising from intra-
group transactions are eliminated in preparing consolidated financial statements. Unrealized losses
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are eliminated in the same way as unrealized gain, but only to the extent that there are no evidence
of impairment.
2.1.10 Cash flow statement
Cash flow statement has been prepared in accordance with BAS 7: Cash Flow Statement, and under
the guideline of Bangladesh Bank BRPD Circular no. 14 dated 25 June 2003.
2.1.11 Statement of changes in equity
Statement of changes in equity has been prepared in accordance with BAS 1: Presentation of
Financial Statements, and following the guidelines of Bangladesh Bank BRPD Circular no. 14 dated
25 June 2003.
2.1.12 Liquidity statement
The liquidity statement has been prepared in accordance with the remaining maturity grouping of
the value of the assets and liabilities as on the reporting date under the guidelines of Bangladesh
Bank BRPD Circular No. 14 dated 25 June 2003. Following bases are used for preparation of the
statement:
Particulars Basis
Balance with other Banks and financial institutions Maturity term
Money at call and on short notice Maturity term
Investments Respective residual maturity
Loans and advances Repayment schedule
Fixed assets Useful lives
Other assets Realization / amortization
Sub-ordinated debt Maturity / repayment terms
Borrowing from other Banks, financial institutions Maturity / repayment terms
Deposits and other accounts Maturity term and past trend of withdrawal
Provisions and other liabilities Settlement / Payment / adjustments schedule
2.2 Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in
these financial statements, and have been applied consistently by group entities except otherwise
instructed by the Central Bank as prime regulator. Certain comparative amounts in the financial
statements have been reclassified and rearranged to conform to the current period’s presentation.
2.2.1 Materiality and aggregation
Each material item considered by management as significant has been presented separately in the
financial statements. No amount has been set off unless the Bank has a legal right to set off such
amount and intends to settle on net basis. Income and expenses are presented on a net basis only
when permitted by the relevant financial reporting standards.
2.2.2 Foreign currency
2.2.2.1 Foreign currency transactions
Foreign currency transactions are translated into the Bank’s functional currency at the exchange
rates prevailing on the respective date of such transactions as per BAS 21: The Effect of Changes in
Foreign Exchange Rates. Monetary assets and liabilities in foreign currencies at the reporting date
are converted into Taka at weighted average rate of inter-bank market as determined by Bangladesh
Bank. Foreign exchange differences are generally recognized in the profit and loss account.
2.2.2.2 Foreign operations
The results of financial statements of the Bank whose functional currency is not Bangladesh Taka
are translated into Bangladesh taka as follows:
A. assets and liabilities for each statement of balance sheet have been translated at the closing
rate on the date of balance sheet.
B. income and expenses for the profit and Loss account have been translated at monthly average
rate.
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2.2.3 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 recognized amounts and there is an intention
to settle on a net basis, or realize the asset and settle the liability simultaneously.
2.2.4 Assets and basis of their measurement
2.2.4.1 Cash and cash equivalents
Cash and cash equivalents include notes and coins on hand, unrestricted balances held with
Bangladesh Bank and its agent bank, balance with other banks and financial institutions, money at
call and on short notice and such other highly liquid financial assets which are subject to insignificant
risk of changes in their value and are used by the Bank management for its short term commitments.
2.2.4.2 Investment
Investments (except government treasury bill and bond) have been initially recognized at cost,
including acquisition charges associated with the investment. Premiums have been amortized and
discount accredited by using the effective or historical yield method. Government Treasury Bills and
Bonds (categorized as HFT and/or HTM) are accounted for as per Bangladesh Bank DOS circular
letter no. 05 dated 26 May 2008 and DOS circular no. 05 dated 28 January 2009. The valuation
methods of investment used are :
i) Govt. securities - Held to Maturity (HTM)
Investments which are intended to be held to maturity are classified as “Held to Maturity”.
These are measured at amortized cost at each period end by taking into account any discount
or premium in acquisition. Amortized amount of such premium are booked into Profit and Loss
Statement or discount is booked to reserve until maturity/disposal.
ii) Govt. securities - Held for Trading (HFT)
Investment primarily held for selling/trading is classified in this category. After initial recognition,
investments are revalued weekly basis on mark to market policy. Decrease in the book value is
recognized in the profit and loss statement and any increase is transferred to revaluation reserve
account.
Value of investments has been enumerated as follows :
Initial Measurement after

Investment class Recording of changes
recognition initial recognition
Govt. securities - HFT Cost Market value Loss to profit and loss account
and gain to revaluation reserve.
Govt. securities - HTM Cost Amortized value Increase in value to equity and
decrease to equity as long as there
are balances available otherwise
to profit & loss account.
Debenture Face value Face value None
Prize bond Cost Cost None
iii) Investment in quoted shares/securities

These shares/securities are bought and held primarily for the purpose of selling in future or for
dividend income. Investment in quoted shares/securities are revalued at the end of the reporting
period and necessary provisions are maintained for diminution in value of investments in quoted
shares/securities. Realized gain or losses are recognized in the profit and loss account.
iv) Investment in unquoted shares/securities
Investment in unquoted shares/securities are initially recognized at cost and revalued based on
book value of last audited balance sheet.
v) Investment in subsidiary
Investment in subsidiary is accounted for under the cost method of accounting in the Bank’s
separate financial statements in accordance with the BAS 27: Separate Financial Statements
and BFRS 3: Business Combination.
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vi) Investment in associates and joint ventures
Associates are those entities in which the Bank has significant influence, but not control, over
the financial and operating policies. Joint ventures are those entities over whose activities the
Bank has joint control, established by contractual agreement and requiring unanimous consent
for strategic, financial and operating decisions. Associates and joint ventures are accounted for
using the equity method (equity accounted investees) in the consolidated financial statements as
per BAS 28: Investment in Associates and Joint Venture. The consolidated financial statements
include the IFIC’s share of the profit and loss of equity accounted investees, after adjustments to
align the accounting policies with those of the IFIC Bank Limited, from the date that significant
influence or joint control commences until the date that significant influence or joint control
ceases. This is consistent with BFRS 11: Joint Arrangements and BFRS 12: Disclosure of Interests
in Other Entities. However investment in associates and joint ventures are recognized at cost in
the separate financial statements as per BAS 27: Separate Financial Statements.
vii) Repo and reverse repo
The Bank recorded the repo and reverse repo transactions in compliance with the DOS Circular
No. 06, dated 15 July 2010 of Bangladesh Bank. In case of repo for both coupon and non-coupon
bearing securities, the Bank adjust the revaluation reserve account for HFT securities and cease
the weekly revaluation of such securities if the revaluation date falls within the repo period. For
interest bearing securities, the Bank does not accrue interest during the repo period.
2.2.4.3 Loans and advances
i) Loans and advances have been stated at gross value as pre requirements of the Banking Companies
Act, 1991 as amended. General provisions on unclassified loans and contingent assets, specific
provisions for classified loans and interest suspense thereon are shown under other liabilities.
ii) Provision for loans and advances are made on the basis of instructions contained in Bangladesh
Bank BRPD circular No. 14 dated 23 September 2012, BRPD circular No. 19 dated 27 December
2012, BRPD circular no. 05 dated 29 May 2013, BRPD circular No. 16 dated 18 November 2014,
BRPD circular No. 15 dated 27 September 2017 and BRPD circular no 1 dated 20 February 2018.
As per BRPD circular no. 4 dated 29 January 2015, 1% additional provision has to be maintained
for restructured large loan.
iii) Interest is calculated on classified loans and advances as per BRPD circular no. 14 dated 23
September 2012 and recognized as income on realization.
The classification rates are given below:
Provision
Types of loan and advances
STD SMA SS DF BL
Housing finance 1% 1% 20% 50% 100%
Professionals 2% 2% 20% 50% 100%
Consumer
Other than housing finance &
5% 5% 20% 50% 100%
professionals to set up business
Provision for loan to broker house, merchant banks,
2% 2% 20% 50% 100%
stock dealers etc.
Short-term agri-credit and micro credit 1% 1% 5% 5% 100%
Small and medium enterprise finance 0.25% 0.25% 20% 50% 100%
Others 1% 1% 20% 50% 100%
Off-balance sheet 1%
iv) 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 filed and classified as bad/loss for more than five years as
per guidelines of Bangladesh Bank. These write off however, will not undermine/affect the claim
amount against the borrower.
To close monitor the written off loan , a separate Remedial Asset Management (RAM) has been
formed and legal action taken through the money loan court by the in-house law division. The RAM
maintains a separate record for all individual cases written off by each branch. The RAM follow-up
on the recovery efforts of these written off loans and reports to management on a periodic basis.
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2.2.4.4 Stock of stationery
Stock of stationery e.g. security stationery, printing stationery etc. has been shown under other
assets and is valued at cost.
2.2.4.5 Fixed assets and depreciation
A. Acquisition through outright purchase
i) Fixed assets are stated at cost/revalued amount less accumulated depreciation for those
acquired through outright purchase except Land. The bank has changed the depreciation
calculation method from reducing balance to straight line method in 2016 and reviewed and
fixed the useful of the fixed assets under different categories as follows:
Particulars Useful Life (Years)

Building 40
Wooden Furniture 10
Steel Furniture 15
Office Equipment 5
Computer 5
Electrical & Gas Equipment 8
Leasehold improvement 10
Vehicles 5
Soft furnishing 3
ii) Land is initially recognized at cost and subsequently carried at revalued amount following
revaluation model as per BAS 16: Property, plant and equipment. The Bank regularly reviews
if the fair value of Land is materially different from its carrying amount or book value and if it
is observed that there is material differences between carrying amount and fair value then
complete revaluation by professional valuer is carried out and any changes in fair value over cost
is adjusted in revaluation reserve account in equity.
iii) Depreciation on fixed assets except Land is charged from when the assets become ready to be
used and no depreciation is charged when the asset is disposed. Land and building are revalued
in sufficient regularity and gain/(loss) on revaluation recognized in equity under the head
‘Revaluation reserve against fixed assets’ in the financial statements.
iv) Assets that take some time to get it ready for use such as construction of building or
implementation of new system etc. are initially kept as capital work in progress and once ready/
available for use then it is transferred to concerned category of fixed assets and calculation of
depreciation starts accordingly.
B. Acquisition under finance lease
Assets acquired under finance lease are stated at cost less accumulated depreciation. Leased
assets are depreciated in a consistent and systematic basis among the useful life. The useful life
of leased assets are determined considering its economic life and lease term, whichever is lower.
2.2.4.6 Intangible assets
Intangible assets are identifiable non-monetary assets without physical substance. It comprises
the value of computer application software licensed for the Bank, other than software applied to
the operating systems of computers. An intangible asset is recognized if it is probable that future
economic benefits that are attributable to the asset will flow to the Bank over a period of time
and the cost of the asset can be measured reliably as per BAS 38: Intangible Assets. Intangible
assets acquired separately are recorded on initial recognition at costs and are carried at cost less
accumulated amortization and accumulated impairment losses, if any.
Subsequent expenditure on intangible asset
Subsequent expenditure on intangible asset is capitalized only when it increases the future economic
benefits embodied in the specific assets to which it relates. All other expenditures are charged as
expense to the profit and loss account as and when they are incurred.
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Amortization of intangible asset
Intangible assets are amortized on straight line method to the profit and loss account from the year
when the asset is available for use. Intangible asset i.e. acquisition cost of the computer application
software is amortized over its useful life which is usually 10 years or among the period of license of
the concerned software.
2.2.4.7 Impairment of assets
An asset is impaired when its carrying amount exceeds its recoverable amount as per BAS 36:
Impairment of Assets. The Bank assesses at the end of each reporting period whether there is any
indication that an asset may be impaired. The impairment test is also made whenever events or
changes in circumstances indicate that the carrying value of the asset may not be recovered. If any
such indication exists, the Bank makes an estimate of the recoverable amount of such assets. Upon
estimation, if the recoverable amount is less than its carrying amount, the carrying amount of the
asset is reduced to its recoverable amount and resultant impairment losses are recognized in the
profit and loss account.
However, the Bank has no such condition which makes any indication that might be suggestive for a
heightened risk of existence of impairment at the reporting date.
2.2.4.8 Leasing
Leases are classified as finance leases when risk and rewards substantially transferred to the lessee
whether title of lease assets eventually transfer or not as per BAS 17: Leases.
i) The Bank as lessor
The Bank has finance lease under its credit portfolio. Amount disbursed to lessees under finance
lease is recorded as lease at constant periodic rate of return on the Bank’s net investment
outstanding in respect of the leases as per BAS 17: Leases.
ii) The Bank as lessee
Assets acquired under lease arrangement where substantially all the risks and rewards incidental
to ownership are transferred to the lessees i.e. IFIC Bank Limited, are treated as finance lease
and recognized as leased assets of the Bank as per BAS 17: Leases. Leased assets are stated at
their fair value at the date of acquisition or, if lower, at the present value of the minimum lease
payments. The corresponding liability to the lessor is included in the Balance Sheet as a finance
lease obligation. Lease payments are apportioned between finance charges and reduction of
the lease obligation so as to achieve a constant rate of interest on the remaining balance of the
liability. Finance charges are charged directly in profit & loss.
2.2.5 Liabilities, provisions and basis of their measurement
2.2.5.1 Borrowings from other banks, financial institutions and agents
Borrowing funds include call money deposits, borrowings under re-finance scheme and other short
term and long term borrowings from banks and financial institutions. Interest paid/payable on these
borrowings is charged to the profit and loss accounts.
2.2.5.2 Deposits and other accounts
Deposits and other accounts include interest and non-interest bearing demand and time deposits
received from the customers/depositors in the form of current, savings and term deposits etc.
Interest paid/payable is charged to the profit and loss account.
2.2.5.3 Provision for taxation
i) Current tax
Provision for taxation has been made as per Income Tax Ordinance, 1984 on the profit made by
the bank after considering taxable add backs of income and disallowances of expenditure as per
tax laws as well as excess or deficit in provision made in previous years.
ii) Deferred tax
Deferred tax is calculated as per BAS 12: Income Taxes on taxable/deductible temporary
differences arising from differences between the carrying amount of assets and liabilities in
the financial statements and the corresponding tax base used in the computation of taxable
profit. Deferred tax liabilities are generally recognized for all taxable temporary differences and
deferred tax assets are recognized, including specific provision (only doubtful and bad / loss)
against the classified loan and advance, to the extent that it is probable that the taxable profits
will be available against which the deductible temporary differences, unused tax losses and tax
credits can be utilized.
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2.2.5.4 Provision for liabilities
Other liabilities comprise items such as provision for loans and advances, provision for taxes, interest
payable, interest suspense and accrued expenses. Other liability is recognized in the balance sheet
according to the guideline of Bangladesh Bank, BAS and BFRS, Income Tax Ordinance 1984 and
internal policies of the bank. Provisions and accrued expenses are recognized in the financial
statement when the bank has a legal or constructive obligation as a result of past event, it is probable
that an outflow of economic benefit will be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation.
2.2.5.5 Provision for Nostro Account
Provision for Nostro accounts is maintained as per Circular Letter No. FEPD(FEMO)/01/2005-677
dated 13 September 2005 issued by Foreign Exchange Policy Department of Bangladesh Bank.
2.2.5.6 Employee benefits
Accounting recognition and measurement, as well as the disclosures requirements for different
benefit schemes for employees are the followings:
i) Provident fund (Defined Contributory Plan)
“Defined Contribution Plan” is a post employment benefit plan under which an entity pays
fixed contribution into a separate entity and will have no legal constructive obligation to pay
further amounts. Provident fund benefits are given to the staff of the bank in accordance with
the registered Provident fund rules. The commissioner of Income Tax, Dhaka has approved the
Provident Fund as a recognized fund within the meaning of section 2(52) read with the provisions
of part - B of the First Schedule of Income Tax ordinance 1984. The recognition took effect from
20 May 1987. The fund is operated by a Board of Trustees consisting of 05 (five) members of
the bank. All confirmed employees of the bank are contributing 10% of their basic salary as
subscription of the fund. The bank also contributes equal amount of the employees’ contribution
to the fund. Upon completion of 5 years of service length after confirmation employees are
entitled to 100% of employer’s contribution along with his/her own contribution. Interest earned
from the investments is credited to the members’ account on half yearly basis.
ii) Gratuity Fund (Defined Benefit Plan)
Gratuity fund benefits are given to the staff of the bank in accordance with the approved
Gratuity fund rules. National Board of Revenue has approved the Gratuity fund as a recognized
Gratuity fund on 8 October 2007. The fund is operated by a Board of Trustees consisting of
6 (six) members of the bank. Employees are entitled to Gratuity benefit after completion of
minimum 10 (ten) years of service in the Company. The Gratuity is calculated on the basis of
average basic pay of last one year and is payable at the different applicable rate on the year of
service as defined in the “IFIC Bank Employees’ Gratuity Fund” which is a funded Gratuity Fund.
iii) Worker’s Profit Participation Fund (WPPF)
Consistent with the industry practice and in accordance with the Banking Companies Act, 1991,
no provision has been made for WPPF.
iv) Other Employee Benefits
Life Insurance
The objective of the scheme is to provide death or permanent disability benefits to its confirmed
employees and their families based on the designation as defined in Insurance Coverage Scheme
of the Bank.
Hospitalization Insurance
The Bank has introduced a health insurance scheme to its confirmed employees and their
respective dependents at rates provided in the Insurance Coverage Scheme of the Bank.
Performance bonus
Bank provides performance bonus to the eligible employees in every year. This bonus amount is
being distributed among the employees based on their performance and management decision.
The bonus amount is paid annually, normally by the half of the every following year and the costs
are accounted for in the period to which it relates.
Annual leave
The provision for leave fare represents the current outstanding liability to employees at
the balance sheet date. Leave Fare Assistance is a non-recurring benefit for all permanent
employees of the Bank who are entitled to annual leave. According to Bangladesh Bank policy
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all permanent employees have to avail 15 consecutive days of mandatory leave and LFA will be
given in this leave period.
Subsidized loan scheme
IFIC has scheme to provide Salary Over Draft and Staff House Building Loan to its eligible staff
as per policy of the Bank.
2.2.5.7 Off-balance sheet items
Under general banking transactions liabilities against acceptance, endorsement and other
obligations and bills against which acceptance has been given and claim exists there against have
been shown as off balance sheet items. General provision at the rate 1% has been made for the off
balance sheet exposures as per instruction contained in Bangladesh Bank BRPD circular No. 14
dated 23 September 2012.
2.2.5.8 Revenue recognition
As per Bangladesh Accounting Standard (BAS) 18: Revenue, revenue is recognized when it is probable
that the economic benefits associated with the transaction will flow to the Bank and the amount of
revenue and the cost incurred or to be incurred in respect of the transaction can be measured reliably.
The revenue during the period is recognized following BAS 18: Revenue as detailed below:
i) Interest income
In terms of BAS 18: Revenue the interest income is recognized on accrual basis. Interest on loans
and advances ceases to be taken into income when such advances are classified. Interest on
classified loans and advances is kept into interest suspense account. Loan and advances are
classified as bad, interest ceases to apply and recorded in a memorandum account. However,
interest on classified loans and advances is accounted for on realization basis as per Bangladesh
Bank circulars.
ii) Fees and commission income
Fees and commission income arising on services provided by the Bank are recognized at the time
of realization. Commission charged to customers on letters of credit and letters of guarantee are
credited to income at the time of effecting the transactions.
iii) Investment income
Income on investments is recognized on accrual basis. Capital gain/loss is recognized at the time
of realization.
iv) Dividend income on shares
Dividend income on shares is recognized when dividend is declared, ascertained and right to
receive the payment is established.
2.2.5.9 Interest paid on deposits and borrowings
In terms of the provisions of the BAS 1: Presentation of the Financial Statements interest expenses
are recognized on accrual basis.
2.2.5.10 Interest on subordinated debt
Interest on subordinated debt is recognized on accrual basis and paid as per the respective terms of
interest payment.
2.2.5.11 Management and other expenses
General and administrative expenses of the Bank are recognized on accrual basis.
2.2.6 General
2.2.6.1 Share capital
Ordinary shares are classified as equity when there is no contractual obligation to transfer cash or
other financial assets.
2.2.6.2 Statutory reserve
As per the Banking Companies Act, 1991 as amended, the Bank is required to transfer at least 20% of
its current year profit before tax to the statutory reserve until such reserve equals to Paid up capital.
2.2.6.3 Fixed assets revaluation reserve
When an asset’s carrying amount is increased as a result of a revaluation the increase amount
should be credited directly to equity under the heading of revaluation surplus/reserve as per BAS 16:
Property, Plant and Equipment. The Bank revalued the land which is absolutely owned by the Bank
and the increased amount was transferred to revaluation reserve.
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2.2.6.4 Non controlling interest
Non controlling interest is that portion of the profit or loss and net assets of the subsidiaries
attributable to equity interests that are not owned, directly or indirectly by the Parent i.e. IFIC Bank
Limited.
2.2.6.5 Reconciliation of books of account
Books of account with regard to inter bank (in Bangladesh and outside Bangladesh) and inter
branch transactions are reconciled and no material differences exist which may affect the financial
statements significantly.
2.2.6.6 Earnings per share (EPS)
Earning per share (EPS) has been computed as per BAS 33: Earnings Per Share by dividing the basic
earning by the weighted average number of ordinary Shares outstanding as at 31 December 2017
which has been shown on the face of the profit and loss account.
i) Basic earnings per share
This represents earnings for the period attributable to ordinary shareholders. As there was no
preference share, the net profit after tax for the period has been considered as fully attributable
to the ordinary shareholders. This has been calculated by dividing the net profit after tax
attributable to the ordinary shareholders by the weighted average number of ordinary shares
outstanding during the period.
ii) Weighted average number of ordinary shares outstanding
This represents the number of ordinary shares outstanding at the beginning of the year plus the
number of ordinary share issued during the period multiplied by a time weighted factor. The time-
waiting factor is the numbers of days the specific shares were outstanding as a proportion of the
total number of days in the year. The basis of computation of number of shares is in line with the
provisions of BAS 33: Earnings per share. The logic behind this basis is, that the bonus shares
are issued to the existing shareholders without any consideration, and therefore, the number
of shares outstanding is increased without an increase in resources generating new earnings.
In contrast, other shares were issued against consideration in cash or in kind, and accordingly
there is an increase in recourses generating new earnings. Therefore, the total number of shares
issued in 2017 has been multiplied by a time weighting factor which is the number of days the
specific shares were outstanding as a proportion of total number of days in the period.
iii) Diluted earnings per share
No diluted earnings per share is required to be calculated for the period as there was no dilutive
potential ordinary share during the period.
2.2.6.7 Related party transactions
As per BAS 24: Related Party Disclosures, parities 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. Parties are also considered to be related if they are subject
to common control or common significant influence. The Bank carried out transactions in the
ordinary course of business on an arm’s length basis at commercial rates with related parties.
Related party transaction is a transfer of resources, services, or obligations between related parties,
regardless of whether a price is charged as per BAS 24: Related Party Disclosures, Bangladesh Bank
and BSEC guidelines. Details of the related party transactions have been disclosed in Annexure F.
2.2.6.8 Events after the reporting period
All material event occurring after the reporting period has been considered and where necessary,
adjusted for or adequately disclosed in the financial statements as per BAS 10: Events after the
Reporting Period.
2.2.6.9 Subordinated debt
In 2016, the Bank with prior consent of Bangladesh Securities and Exchange Commission (vide
letter no. BSEC/CI/DS-32/2015/644 dated 28 December 2015) and Bangladesh Bank (vide letter no.
BRPD(BFIS)661/18B(P)/2016-938 dated 08 February 2016 and BRPD(BFIS)661/18B(P)/2016-2475
dated 17 April 2016) issued 07 (seven) years Non-Convertible Coupon Bearing Subordinated Bonds as a
part of eligible capital under Tier-II as per Basel-III. The issued instrument is un-secured, non-convertible
in nature and will be redeemed at 20% of its face value each year which will start at the end of 3rd year.
The rate of interest of the Bond is Reference Rate + 4.8% Margin, where Reference Rate is the latest
182 days Bangladesh Govt. T-Bill rate. Coupon floor rate is 7.0% and coupon ceiling rate is 11.0%.
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Coupon to be paid semi-annually. This subordinated bond has been rated by CRAB as AA3 (Hyb) in
Long Term category with ‘Stable’ outlook valid up to 28 June 2018 which is judged to be of very high
quality, subject to very low credit risk.
2.2.6.10 Risk management
Risk is an inherent part of the business activities and risk management is pivotal for the sustainability
of business. The Risk of the Bank is defined as the probability of losses, financial or otherwise. The
standards of Risk Management as guided by the Bank for International Settlements (BIS) and
particularly Basel Committee on Banking Supervision (BCBS), has been applied by bank regulators
across the world. Bangladesh Bank also issued guidelines which forms the basis of risk management
of all scheduled banks in Bangladesh. The guidelines require that the banks adopt enhanced policies
and procedures of risk management.
IFIC has an approved ‘Risk Management Policy’ for managing Core risks and other material risks
inherent with the banking business i.e. Credit Risk Management, Foreign Exchange Risk Management,
Asset liability Management, Prevention of Money Laundering, Internal Control and Compliance and
Information & Communication Technology. Other risks like operational risk, liquidity risk, interest
rate risk, equity price risk, market risk are also managed on a regular basis.
IFIC Bank manages risk in Strategic layer, Managerial layer and Operational layer as a part of sound
risk management. The Bank has a Risk Management Committee on behalf of the Board of Directors
as Strategic Layer to oversee the overall risk of the Bank. The Bank has a Managerial layer headed
by Deputy Managing Director & Chief Risk Officer (CRO) and an Operational layer represented
by Risk Management Division (RMD). RMD is the organizational arm performing the functions of
identifying, measuring, analyzing, monitoring and controlling the various risks and assists the Apex
level committee i.e. Strategic layer and Managerial layer in conversion of policies into action. RMD
as Operational layer analyze risk appetite / tolerance / limit of all related divisions of the Bank and
conducts internal rating of core risks, stress test in order to gauge shock absorbing capacity of the
Bank. Shocks are applied at minor, moderate and major levels as to ascertain that whether bank
could sustain under the stress situations or not. The prime objective of the risk management is to
identify and analyze the risks and manage their consequences. Bank may take the risks according to
risk appetite approved by the Board of Directors subject to it’s capital base. Bank should always keep
the cushion of capital to face loss when arises any specific event or systematic risk.
i) Credit risk
Credit risk is most simply defined as the probability that a bank borrower or counterparty will
fail to meet its obligations in accordance with agreed terms. The goal of the Bank Credit Risk
Management is to maximize the bank’s risk-adjusted rate of return by maintaining credit risk
exposure within the acceptable parameters.
The Credit Risk Management works within the scope defined regulations and is in charge of
specifying and implementing the policies towards the effective functioning of the Bank’s
lending process and to develop the strategies for appropriate management, measurement and
monitoring its lending portfolio. Regular monitoring of the ability of borrowers to meet their
principal and interest repayment obligations is conducted. Credit risk is monitored by reference
to risk grading and managed by limiting the aggregate exposure to any individual counter party,
group of companies or industry as per lending cap of the bank and single borrower exposure
limit defined by Bangladesh Bank.
ii) Asset liability management risk
Asset Liability Management (ALM) is the most important aspect for the Bank to manage Balance
Sheet Risk, especially for managing of liquidity risk and interest rate risk. Changes in market
liquidity and interest rate expose Bank business to the risk of loss. Failure to identify the risks
associated with business and to take timely measures against those risks may threaten the
survival of institution. As such, it is important that the senior management as well as the Board
of Directors to understand the existence of such risk on the Balance Sheet and ensure that the
structure of the Bank business and the level of Balance Sheet risks are effectively managed
by adopting the appropriate policies, procedures to control these risks as well as resources
available for evaluating and controlling such risk. To address all the risk elements of the Balance
Sheet, ALCO Meetings are conducted at least on a monthly basis. ALM desk of the Bank
analyses the Balance Sheet Risk and prepares the monthly ALCO Papers as per the guidelines
of Bangladesh Bank. The maturity gap of the assets-liabilities and interest rate movement are
strongly monitored by the ALCO. Moreover, ALCO of the Bank also monitor the optimum liquidity
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position of the Bank in line with regulatory requirement. The policy guidelines on asset liability
management which are approved by the Board of Directors have been reviewed time to time.
iii) Money laundering risk
Money laundering risk is defined as the loss of reputation and expenses incurred as penalty for
being negligent in prevention of money laundering. To mitigate this risk, since 2002 Bank has
been complying with all the rules and regulations on AML/CFT issues. As directed by the BFIU
of Bangladesh Bank, the Bank has formulated “Money Laundering & Terrorist Financing Risk
Management Guidelines 2016 (amendment)” which is strictly followed by the branches and
officers of the Bank.
In line with the noted policy and regulatory requirement, the Chief Anti-Money Laundering
Compliance Officer (CAMLCO) regularly submits status report to the competent authorities in
respect of the Suspicious Transaction Report (STR), Cash Transaction Report (CTR), Know Your
Customer (KYC) Procedure, Transaction Monitoring Report, Structured Monitoring Report as
well as submits the half yearly Self Assessment Report of branches and independent testing
procedures conducted by Internal Control & Compliance Division and similar other areas. The
Bank is consistently maintaining very good rating on AML/CFT issues.
Bank is regularly arranging training programs on prevention of money laundering & combating
financing of terrorism with the particular focus on Trade Based Money Laundering for its
all executives & officers. During the period, the Bank arranged several training programs
on prevention of money laundering & combating financing of terrorism where a number of
executives & officers were participated.
iv) Internal control and compliance risk
The operational performance of the Bank is depended on efficient and sound internal control
system for establishing corporate governance, transparency and accountability. In line with the
Bangladesh Bank guidelines the Bank has successfully implemented the effective internal control
system guidelines, formulation of policy guideline, set up of separate organizational structure,
segregation of duties and introduction of internal control process, such as Departmental Control
Function Checklist (DECFL), Quarterly Operation Report (QOR) etc.
Being an integral part of daily activities of the Bank, Internal Control & Compliance Division
consist three units namely; Compliance, Monitoring and Audit & Inspection. These units are
look after internal control, operational process very minutely to ensure the smooth operation
of the Bank. Compliance section is functioning to ensure compliance with statutory/regulatory
requirements and also Bank’s internal policies & procedures for developing compliance culture
within the Bank. Monitoring unit is responsible for operational performance of branches and
head office to minimize and mitigate the risk factors associated with the banking business. As a
internal watchdog, the Audit and Inspection unit is conducting Risk Based Audit & Inspection to
identify, measure, control and mitigate risk factors at the branches and division of the Bank.
Internal Control Unit (ICU) has also been set-up at the branches with the existing manpower to
minimize irregularities and lapses to prevent fraud, forgeries and to avoid operational risks of the
Bank. In 2016 the Bank has introduced ‘Risk based Internal Audit Policy’, Branch Audit Rating
System in order to up grade the operational efficiency of the branches.
v) Fraud risk
Fraud is a concept that is generally understood but whose characteristics are often not
recognized in due course. The incidence of fraud may occur due to rapid changes in technological
environment in the banking sector or intentional behavioral aspect of the human being. Human
fraudulent acts may be committed by outsiders or insiders such as employees who are aware
of the internal operational process of the Bank. To take the advantage of the operational
process and weakness of the internal control system of the work place, employees may commit
fraudulent activities within the Bank. To prevent the fraud and forgeries, the Bank has adopted
broad range of measures to monitor and mitigate the fraud risk which involves three steps, fraud
prevention, fraud detection and fraud investigation. Bank considers the best practice to prevent
frauds and forgeries rather than to detect or investigate. To prevent the external fraud, Bank
regularly arrange training program for its executives and staffs working at branch and head
office level. Internal Control and Compliance unit of the Bank also works very extensively to
ensure the effectiveness of the internal control system throughout the Bank. Internal Control
Unit (ICU) of each branch and division monitors the transactions process to prevent and detect
both internal and external frauds.
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vi) Foreign exchange risk
Foreign Exchange Risk arises from adverse movement in currency exchange rates. As per
directives of Bangladesh Bank, the Bank has formulated and adopted the treasury policy for
managing the foreign exchange risks. Functions of the treasury front, mid and back office
have been designated and properly segregated. In addition to the policy guidelines treasury
operational guidelines have also been formulated for defining the roles and responsibilities of
front, back and mid office so that various foreign exchange transactions can be performed in line
with the Bangladesh Bank regulations and Bank’s internal policies and procedures to measure,
monitor and mitigate the foreign exchange risks.
vii) Information and communication technology (ICT) risk
The Bank underlined concentration on creating a technology backbone that enabled IFIC
to realize its mission to become the preferred financial service provider through innovative,
sustainable and inclusive growth and deliver the best in class value to all stakeholders.
Accordingly, the Bank has formulated policies and procedures for ICT Security and has taken
steps to protect the information and related assets from unauthorized access, modification and
destruction for the sake of the interest of its customers. To mitigate risks in ICT operations, the
Bank is continuously conducting training sessions on sensitive IT tasks (i.e. operational procedures,
security procedures etc.) and creating Cyber Security Awareness for relevant employees.
The Bank is taking Data Backup on daily basis; one copy is being stored in fire-proof Vault and
another copy is being kept at remote site to face any disaster in Data Centre. Disaster Recovery
(DR) Site has been established at Uttara, Dhaka to replicate data of Data Centre and failover
business operations in case of any emergency or any disaster at Data Centre. Business continuity
Plan has also been developed.
The Bank Management has been putting conscious efforts to improve problem Management, ICT
Operation Management, Change Management, Asset Management and Request Management
to maintain maximum uptime of automated online banking business.
Bank’s ICT –Security Guideline is made as per the guideline of Bangladesh Bank. Physical security
is being maintained for its workplace to properly protect ICT resources as per the guideline
of Bangladesh Bank. The Bank also strictly follow the Information Security Guidelines of
Bangladesh Bank which covers Password Control, User ID Maintenance, Input Control, Network
Security, Data Encryption, Virus Protection and Access Control to Internet and Emailing.
The Bank is maintaining Service Level Agreement (SLA) with the vendors who are directly
involved for providing critical services on behalf of the Bank. The Bank is also maintaining
Insurance Coverage of critical IT Assets and maintaining IT Assets Inventory.
The Bank has developed Fall Back Plan of IT Human Resources with detailed job descriptions and
segregation of duties for IT tasks. The Bank has also completed all ICT Security documentation
to ensure security of ICT Systems and is continuously updating them to strengthen security of
the systems.
viii) Other relevant risks
a) Operational risk
Operational risk addresses the risk associated with fraud, forgery, unauthorized activities, error,
omission, system failure and other external events. These occur mainly due to inadequate or
failed internal processes, people and systems, or from external events (including legal risk). The
Bank is managing these risks through written procedures, regular training, awareness programs
and monitoring of the implementation of these procedures. Internal Control and Compliance
Division of the Bank monitors operational procedure of the Bank. It 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.
b) Liquidity risk
Liquidity risk is the potential for loss to a bank arising from either its inability to meet its obligations
as they fall due or to fund increases in assets as they required without incurring unacceptable
cost or losses.
Liquidity risk arises when the cushion provided by the liquid assets are not sufficient enough to
meet maturing obligations.
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The objective of liquidity risk management is to ensure that all foreseeable funding and
payments commitments and deposit withdrawals can be met when due. To this end, the Bank
is maintaining a diversified and stable funding base comprising of retail and corporate deposits
maintain balanced tenor and institutional balance. The liquidity management is monitored by
Asset Liability Committee (ALCO) on a regular basis.
c) Market risk
It is the risk of potential losses in the on-balance sheet and off-balance sheet positions of a
bank, steams from adverse movements in market rates or prices such as interest rates, foreign
exchange rates, equity prices, credit spreads and/or commodity prices.
Banks may be exposed to market risk in variety of ways. Market risk exposure-
a) may be explicit in portfolios of securities/equities and instruments that are actively traded;
b) may be implicit such as interest rate risk due to mismatch of assets and liabilities; and
c) may arise from activities categorized as off-balance sheet items.
d) Interest rate risk
Interest rate risk may arise from trading portfolio and non-trading portfolio. The trading portfolio
of the Bank consists of government treasury bills, bond, etc. 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) of the Bank monitors the interest rate movement on a regular basis.
Interest rate risk is the potential impact on a bank’s earnings and net asset values due to changes
in market interest rates. Interest rate risk arises when a bank’s principal and interest cash flows
(including final maturities), both on-and off-balance sheet, have mismatched reprising dates.
The amount at risk is a function of the magnitude and direction of interest rate changes and the
size and maturity structure of the mismatch position. Bank’s lending, funding and investment
activities give rise to interest rate risk. Interest rate risk management is conducted within the
context of a comprehensive business plan.
e) Equity price risk
Equity price risk is the risk of losses caused by changes in equity prices. These losses could arise
because of changes in the value of listed shares held directly by the bank; changes in the value
of listed shares held by a bank subsidiary; changes in the value of listed shares used as collateral
for loans from a bank or a bank subsidiary, whether or not the loan was made for the purpose of
buying the shares; and changes in the value of unlisted shares. Bank presses vital importance to
measure, monitor, and control their equity market risk.
f) Reputation risk
Reputation risk may arise from the possibility that negative publicity regarding the bank and its
business practices, in the territory or elsewhere through related entities, and whether accurate
or not, will adversely impact the operations and position of the bank. Reputation risk may also
arise from an institution, or an affiliate, being domiciled in a jurisdiction where the legal and
organizational framework for the regulation and supervision of financial institutions is generally
viewed as failing to meet international standards for the protection of consumers of financial
services and for the prevention of sheltering the proceeds of organized crime.
The Bank manages the reputation risk ensuring the followings:
a) Management anticipates and responds to changes of a market or regulatory nature that affect
its reputation in the market place;
b) The Bank effectively develops its polices for risk management to refrain from committing
violations of laws, regulations, best banking practices, and consumer rights that could affect its
reputation;
c) The Bank has continuous awareness that it is not subject to significant litigation, large monetary
losses, or a high volume of customer complaints;
d) The bank is routinely seen in a leadership role in community development and corporate social
responsibility; and
e) Management has a clear awareness of privacy issues and uses customer information responsibly.
FINANCIAL
161
2.2.6.11 Management Committee (MANCOM)
The Management Committee (MANCOM) is functioning as a structured unit to take important
management decisions. Presently, it comprises of members holding key positions in the Management
of the Bank. The Committee is headed by the Managing Director & CEO who is assisted by Deputy
Managing Directors, Heads of Divisions of strategically important divisions along with Branch
Managers of large and important Branches. The Managing Director’s Secretariat provides secretarial
services to the Committee. The members of the Committee, having long experience in commercial
banking actives, are concerned with management of respective Divisions as well as monitoring day
to day activities taking place in different areas of the Bank.
Generally the Committee sits at least once in every month to review and evaluate strategic operational
issues of the bank, identify specific problems which need to be immediately attended, identify
weakness (if any) of the Bank and take remedial measures or any other measures for enhancing the
reputation of the Bank. Generally, the MANCOM is concerned with major decision making, planning
and framing of policy guidelines of the Bank.
2.2.6.12 Credit rating of the bank
The Bank has been awarded its credit rating done by Credit Rating Agency of Bangladesh Limited
(CRAB) based on the financial statements and other relevant information as at and for the year ended
31 December 2016 as per BRPD Circular no. 6 dated 5 July 2006. The following ratings for different
year have been awarded:
Rating Status
Type of Period of Financial statements
Long Short Validity
Rating used as basis Outlook
term term
Entity January to December 2016 AA2 ST-2 Stable 30-Jun-18
Entity January to December 2015 AA2 ST-2 Stable 30-Jun-17
Entity January to December 2014 AA2 ST-2 Positive 30-Jun-16
2.2.6.13 Compliance report on Bangladesh Financial Reporting Standards (BFRSs):

The Institute of Chartered Accountants of Bangladesh (ICAB) is the sole authority for adoption of
Bangladesh Financial Reporting Standards (BFRSs) including Bangladesh Accounting Standards (BASs)
as of 31 December 2017. While preparing the financial statements, Bank complied all the applicable
BASs and BFRSs as adopted by ICAB except those described in note 2.1.1. Details are given below:
Name of the BFRS BFRS No. Status

First-time Adoption International Financial Reporting Standards 1 N/A
Share Based Payment 2 N/A
Business Combinations 3 Complied
Insurance Contracts 4 N/A
Non-current Assets Held for Sale and Discontinued Operations 5 N/A
Exploration for and Evaluation of Mineral Resource 6 N/A
Financial Instruments: Disclosures 7 Complied*
Operating Segments 8 Complied
Consolidated Financial Statements 10 Complied
Joint Arrangements 11 Complied
Disclosure of Interests in Other Entities 12 Complied
Fair Value Measurement 13 Complied
Regulatory Deferral Accounts 14 N/A
Name of the BAS BAS No. Status

Presentation of Financial Statements 1 Complied
Inventories 2 Complied
Statement of Cash Flows 7 Complied
FINANCIAL
Accounting Policies, Changes in Accounting estimates & Errors 8 Complied
Events After the Reporting Period 10 Complied
Construction Contracts 11 N/A
Income Taxes 12 Complied
Property, Plant and Equipment 16 Complied
Leases 17 Complied
Revenue 18 Complied
Employee Benefits 19 Complied
Accounting for Government Grants and Disclosure of Government Assistance 20 N/A
The Effects of Changes in Foreign Exchange Rates 21 Complied
Borrowing Costs 23 Complied
Related Party Disclosure 24 Complied
Accounting and Reporting by Retirement Benefits Plans 26 N/A
Separate Financial Statements 27 Complied
Investment in Associates and Joint Ventures 28 Complied
Financial Reporting in Hyperinflationary Economies 29 N/A
Interest in Joint Ventures 31 N/A
Financial Instruments: Presentation 32 Complied*
Earnings Per Share 33 Complied
Interim Financial Reporting 34 Complied
Impairment of Assets 36 Complied
Provisions, Contingent Liabilities and Contingent Assets 37 Complied
Intangible Assets 38 Complied
Financial Instruments: Recognition and Measurement 39 Complied*
Investment Property 40 N/A
Agriculture 41 N/A
Note: N/A - Not Applicable
* In order to comply with certain specific rules and regulations of the local Central Bank (Bangladesh Bank) which are different to
BAS/BFRS, some of the requirements specified in these BAS/BFRSs are not applied.
New accounting standards not yet adopted

In December 2017, ICAB has decided to adopted IFRS replacing BFRS effective for annual periods
beginning on or after 1 January 2018. However, since currently issued BFRS have been adopted from
IFRS without any major modification, such changes would not have any material impact on financial
statements.
The following BFRSs were issued but not effective as at 31 December 2017:
Name of the BFRS BFRS No. Effective From

Financial Instruments BFRS 9 On or after 01.01.2018
Revenue form Contracts with Customers BFRS 15 On or after 01.01.2018
In addition to this a new standard as “IFRS 16 Leases” have been published by IASB but the same is
yet to be adopted in Bangladesh as BFRS by ICAB. Hence old accounting standard in this respect has
been followed in the preparation of these financial statements.
FINANCIAL
163
Amount in BDT
Note 31 December 2017 31 December 2016
3 Cash
Cash in hand (including foreign currency) 3.1 2,242,987,643 2,006,140,356
Balance with Bangladesh Bank and its agent bank(s) 3.2 13,235,784,939 12,061,014,307
(including foreign currency)
15,478,772,582 14,067,154,663
3.1 Cash in hand (including foreign currency)

Local currency in hand 2,007,898,180 1,852,141,398
Foreign currencies in hand 31,065,052 22,916,697
Cash with ATM 204,024,411 131,082,261
2,242,987,643 2,006,140,356
3.2 Balance with Bangladesh Bank and its agents bank

Bangladesh Bank
Local currency 11,658,597,953 10,132,261,714
Foreign currency 1,213,888,149 1,480,549,588
12,872,486,102 11,612,811,302
Sonali Bank as agent of Bangladesh Bank 363,298,837 448,203,005
13,235,784,939 12,061,014,307
3.3 Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR)
Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in
accordance with section 33 of the Banking Companies Act 1991 as amended and MPD circular no. 1, dated 23
September 2014 and MPD circular no. 2, dated 10 December 2013.
3.3.1 Cash Reserve Requirement (CRR)

As per Bangladesh Bank MPD Circular no. 1 dated 23 June 2014 [effective from 24 June 2014], all scheduled
banks have to maintain CRR of minimum 6.0% on daily basis and 6.5% on bi-weekly basis based on weekly
average demand and time liabilities excluding inter-bank deposits of immediate preceding two months [i.e. CRR
of December 2017 was based on weekly average balance of October 2017]. CRR maintained by the Bank as per
statutory requirement is shown below:
Average time and demand liabilities 172,336,019,750 155,514,904,000

Required reserve 11,201,841,284 10,108,468,760
Actual reserve maintained* 11,615,875,000 10,206,217,000
Surplus 414,033,716 97,748,240
* As per Bangladesh Bank current account statement.
3.3.2 Statutory Liquidity Ratio (SLR)

As per Bangladesh Bank MPD Circular no. 2 dated 10 December 2013 [effective from 1 February 2014], all
scheduled banks have to maintain SLR of minimum 13.0% of weekly average demand and time liabilities
excluding inter-bank deposits of immediate preceding two months [i.e. SLR of December 2017 was based on
weekly average balance of October 2017]. SLR maintained by the Bank as per statutory requirement is shown
below:
Average time and demand liabilities 172,336,019,750 155,514,904,000

Required reserve 22,403,682,568 20,216,937,520
Actual reserve maintained 26,959,930,238 23,303,327,379
Surplus 4,556,247,671 3,086,389,859
FINANCIAL
Actual reserve maintained for SLR

Cash in hand 3.1 2,242,987,643 2,006,140,356
Balance with Bangladesh Bank in excess of CRR 414,033,716 97,748,240
Balance with Sonali Bank as agent 3.2 363,298,837 448,203,005
Government securities (HFT) 6.3 11,070,665,980 7,456,069,889
Government securities (HTM) 6.3 12,868,944,062 13,295,165,889
26,959,930,238 23,303,327,379
3.a Consolidated cash in hand

IFIC Bank Limited 3.1 2,242,987,643 2,006,140,356
IFIC Securities Limited 7,105 238,310
IFIC Money Transfer (UK) Limited 8,773,824 12,026,893
2,251,768,572 2,018,405,559
3.b Balance with Bangladesh Bank and its agents bank

IFIC Securities Limited - -
IFIC Money Transfer (UK) Limited - -
13,235,784,939 12,061,014,307
15,487,553,511 14,079,419,866
4 Balance with other banks and financial institutions

In Bangladesh 4.1 8,068,534,921 7,592,399,021
Outside Bangladesh * 2,554,984,924 1,416,578,750
10,623,519,845 9,008,977,771
* Details of Balance with outside Bangladesh are shown in “Annexure-A”.
4.1 In Bangladesh
In current deposit account with
Agrani Bank Limited 32,525,278 39,028,153
Sonali Bank Limited 44,109,821 36,599,776
Islami Bank Bangladesh Limited 99,150 100,000
76,734,249 75,727,929
In Special Notice Deposit account with

Trust Bank Limited 33,078,349 45,507,166
Standard Chartered Bank 8,692,380 14,864,880
41,770,729 60,372,046
In Beneficiary Owner (BO) account with

IFIC Securities Limited 659 6,269,312
Latif Securities Limited 29,284 29,734
29,943 6,299,046
FINANCIAL
165
In Fixed Deposit account with banks and NBFIs

Peoples Leasing & Financial Services Limited 150,000,000 150,000,000
Investment Corporation of Bangladesh (ICB) 7,800,000,000 5,000,000,000
Mercantile Bank Limited - 700,000,000
Industrial and Infrastructure Development Finance - 100,000,000
Company Limited
BRAC Bank Limited - 1,000,000,000
National Bank Limited - 500,000,000
7,950,000,000 7,450,000,000
8,068,534,921 7,592,399,021
4.2 Maturity grouping of balance with other banks and FIs

Receivable on demand 2,673,489,902 1,552,678,725
Upto 1 month 3,500,029,943 4,706,299,046
More than 1 month but not more than 3 months 4,450,000,000 2,750,000,000
More than 3 months but not more than 6 months - -
More than 6 months but not more than 1 year - -
More than 1 year but not more than 5 years - -
More than 5 years - -
10,623,519,845 9,008,977,771
4.a Consolidated balance with other banks and financial institutions

4.a (i) In Bangladesh
IFIC Securities Limited 95,242,495 86,488,370
8,163,777,416 7,678,887,391
Less: Inter -company transaction 95,242,494 86,488,370
8,068,534,922 7,592,399,021
4.a (ii) Outside Bangladesh

IFIC Bank Limited 4 2,554,984,924 1,416,578,750
IFIC Money Transfer (UK) Limited -
2,554,984,924 1,416,578,750
10,623,519,846 9,008,977,771
5 Money at call and on short notice

AB Bank Limited 500,000,000 -
Basic Bank Limited 650,000,000 -
BRAC Bank Limited 100,000,000 -
Habib Bank Limited 330,000,000 -
NCC Bank Limited 500,000,000 -
Pubali Bank Limited 1,400,000,000 -
The City Bank Limited 150,000,000 -
Bank Alfalah Limited 200,000,000 -
3,830,000,000 -
FINANCIAL
6 Investments
Government Securities 6.1 23,943,582,942 20,754,752,878
Other Investments 6.2 3,914,559,300 4,449,771,304
27,858,142,242 25,204,524,182
6.1 Government securities

Treasury bills 6.1.1 8,371,890,078 7,456,069,889
Treasury bonds 6.1.2 12,868,944,062 13,295,165,889
Bangladesh Bank bills 2,698,775,902 -
Prize bond 3,972,900 3,517,100
23,943,582,942 20,754,752,878
6.1.1 Treasury bills

91 days treasury bills 5,062,153,880 4,672,588,368
182 days treasury bills 2,055,468,793 1,798,183,630
364 days treasury bills 1,254,267,405 985,297,891
8,371,890,078 7,456,069,889
6.1.2 Treasury bonds

2 years Treasury bond 1,551,864,375 1,167,069,006
12,868,944,062 13,295,165,889
6.2 Other investments

Unquoted shares
Karma Sangsthan Bank 20,000,000 20,000,000
Central Depository Bangladesh Limited 22,847,220 22,847,220
Energy Pack Power Company Limited 25,960,000 25,960,000
68,807,220 68,807,220
Quoted shares
National Housing Finance & Investment Limited 39,010,000 39,010,000
Power Grid Company Limited 215,882,261 275,412,488
Summit Alliance Port Limited 5,692,616 28,198,825
Eastland Insurance Company Limited 7,958,672 8,941,428
TITAS Gas Transmission and Distribution Limited 412,348,120 465,701,734
Unique Hotel and Resorts Limited 21,029,385 21,029,385
Fareast Life Insurance Limited 122,511,641 136,631,812
Delta Life Insurance Company Limited - 56,270,614
Summit Power Limited - 108,786,696
British American Tobacco Bangladesh Limited - 80,528,642
Beximco Limited - 1,032,063,098
Malek Spinning Mills Company Limited - 7,681
The City Bank Limited - 194,197,477
Northern General Insurance Company Limited - 10,951,563
Reliance Insurance Limited - 11,674,463
824,432,695 2,469,405,906
FINANCIAL
167
Mutual funds
IFIC Bank 1st Mutual Fund 250,000,000 250,000,000
ICB Employee 1st Mutual Fund 17,986,473 17,986,473
267,986,473 267,986,473
Foreign Investment
Investment in associates:
Nepal Bangladesh Bank Limited 2,383,257,623 1,291,386,223
Oman Exchange LLC 18,797,875 17,889,167
2,402,055,498 1,309,275,390
Other foreign investment
MCB Bank Limited, Pakistan * 351,277,414 334,296,315
2,753,332,912 1,643,571,705
3,914,559,300 4,449,771,304
Details of investment in shares are shown in “Annexure-B”.
* In 13 June 2017, NIB Bank Limited merged with MCB Bank Limited which is described in note: 1.6.
6.3 Government securities classified according to Bangladesh Bank Circular

Held for trading (HFT) 6.1 11,070,665,980 7,456,069,889
Held to maturity (HTM) 6.1.2 12,868,944,062 13,295,165,889
Other securities 6.1 3,972,900 3,517,100
23,943,582,942 20,754,752,878
6.4 Maturity grouping of investments

On demand 3,972,900 3,517,100
Up to 1 month 6,144,894,985 6,521,506,276
Over 1 month but not more than 3 months 4,909,031,451 208,208,137
Over 3 months but not more than 6 months 1,142,973,870 1,698,409,762
Over 6 months but not more than 1 years 2,730,948,455 2,170,200,316
Over 1 year but not more than 5 years 5,268,550,365 6,790,108,908
Over 5 years 7,657,770,217 7,812,573,683
27,858,142,242 25,204,524,182
6.5 Disclosure regarding outstanding Repo and Reverse Repo

Sl. Counterparty name Agreement date Reversal date Amount
- - - - -
Total
Disclosure regarding outstanding Reverse Repo
Sl. Counterparty name Agreement date Reversal date Amount
- - - - -
Total -
Disclosure regarding overall transaction of Repo and Reverse Repo
Minimum Maximum Daily average
Counterparty name outstanding in outstanding in outstanding in
Y2017 Y2017 Y2017
Securities sold under Repo
With Bangladesh Bank - - -
With other Banks and FIs 198,369,400 499,329,500 25,901,956
Securities purchased under Reverse Repo

From Bangladesh Bank - - -
From other Banks and FIs 131,408,923 999,596,757 54,877,702
FINANCIAL
6.a Consolidated investments

Government Securities
23,943,582,942 20,754,752,878
6.b Consolidated other investments

Less: Book value of investment in joint venture/associate-NBBL (2,383,257,623) (1,291,386,223)
Less: Book value of investment in joint venture/associate -OE LLC (18,797,875) (17,889,167)
Add: Investment in NBBL under equity method 40.b(i) 3,696,288,544 2,147,122,580
Add: Investment in OE LLC under equity method 40.b(ii) 52,019,550 56,046,962
5,347,294,421 5,524,708,015
29,290,877,363 26,279,460,893
7 Loans and advances

Loans, cash credit, overdraft etc. 7.1 167,561,290,347 127,998,226,184
Bill purchased and discounted 8 11,702,916,400 9,119,885,365
179,264,206,747 137,118,111,549
7.1 Loans, cash credit, overdraft etc.

Term loan industrial 17,063,561,459 12,333,703,299
Term loan consumer finance 558,364,756 636,390,971
Agricultural loan 3,371,120,066 3,006,803,426
Term loan women entrepreneur 11,013,182 11,309,924
Term loan-others 41,166,349,180 27,807,286,029
House building loans 28,602,090,173 14,951,644,865
Staff loan 1,757,091,256 1,858,818,100
Transport loan 283,941,559 402,695,352
Loan general 2,907,043,082 2,401,964,880
Demand loan 4,801,451,088 3,877,619,292
Overdrafts 33,845,375,485 26,839,671,440
Cash credit 25,763,648,192 27,235,145,835
Credit card finance 221,172,914 248,056,244
Loan against trust receipt (LTR) 6,045,961,917 4,753,716,891
Lease finance 7.16 603,861,134 661,639,981
Loan against imported merchandise(LIM) - 70,710,364
167,002,045,443 127,097,176,893
Off-shore banking unit 559,244,904 901,049,291
167,561,290,347 127,998,226,184
FINANCIAL
169
7.2 Residual maturity grouping of Loans, cash credit, overdraft etc.

On demand 27,838,862,770 17,200,313,375
Up to 1 month 5,450,193,405 6,711,824,959
Over 1 month but not more than 3 months 16,826,336,698 19,167,679,490
Over 3 months but not more than 1 years 46,739,015,931 40,182,681,587
Over 5 years 56,960,932,917 15,486,834,516
167,561,290,347 127,998,226,184
7.3 Loans and advances under broad categories

Loans 107,952,266,670 73,923,408,909
Cash credit 25,763,648,192 27,235,145,835
Overdrafts 33,845,375,485 26,839,671,440
167,561,290,347 127,998,226,184
Bill purchased and discounted 8 11,702,916,400 9,119,885,365
179,264,206,747 137,118,111,549
7.4 Loans and advances on the basis of significant concentration

Loans and advances to Directors, Executives and Others
Loans and advances to directors and their allied concerns - -
Loans and advances to Managing Director, Senior 1,757,091,256 1,858,818,100
Executives and Staffs
Advances to customers’ groups 177,507,115,491 135,259,293,449
179,264,206,747 137,118,111,549
7.5 Loans and advances allowed to each customer exceeding 10% of Bank’s total capital
Number of customers 18 26
Outstanding - Funded 42,831,500,000 47,180,600,000
Outstanding - Non-funded 16,705,600,000 17,257,200,000
Amount classified 28,560,000 -
Amount of loans and advances (comprising funded and non funded facilities) to each customer exceeding BDT
2,411.38 million which is computed as 10% of the Bank’s capital (as defined under the Banking Companies Act
1991 as amended) of BDT 24,113.77 million as at 31 December 2017. As at 31 December 2016, 10% of Bank’s
total capital was BDT 1,692.77 million.
Details of loans and advances to each customer exceeding 10% Banks capital are shown in “Annexure-C”.
7.6 Industry wise position of loans and advances including bills purchased and discounted
Agriculture 4,152,871,153 3,006,803,426
Jute 2,332,158,477 2,177,571,726
Textile 8,106,041,668 5,852,215,119
Garments 22,846,097,610 19,811,098,814
Chemical and chemical products 82,717,360 222,144,269
Cement 478,685,019 153,876,760
Bricks & ceramic 1,162,799,867 988,423,251
Food products & processing 7,009,933,259 4,995,132,406
Engineering & metal 4,572,114,176 3,470,605,332
FINANCIAL
Drugs & pharmaceuticals 793,677,153 731,973,543

Hospital & clinics 118,930,607 139,144,277
Paper & paper products 729,630,865 518,183,348
Other small industries 5,573,560,408 5,093,500,000
IT sector 3,888,500,063 2,846,175,215
Other service industries 18,887,301,387 13,440,500,000
Trade & commerce 25,189,491,153 24,579,900,000
Transport 412,158,286 471,725,998
Construction firms/companies 4,383,749,184 4,527,265,356
Housing societies/companies 18,618,329,957 9,218,362,247
Cold storage 166,427,636 75,695,741
Consumer finance 32,636,155,787 18,732,800,000
Energy 7,228,342,800 6,861,220,917
Telecommunication 6,481,185,089 6,509,698,926
Others 3,413,347,782 2,694,094,878
179,264,206,747 137,118,111,549
7.7 Sector wise position of loans and advances including bills

purchased and discounted
Government sector - -
Other public sector - -
Private sector 179,237,084,214 137,118,111,549
Co-operative sector 27,122,534 -
179,264,206,747 137,118,111,549
7.8 Geographical location-wise loans and advances including bills

purchased and discounted
Dhaka division 144,030,740,953 106,867,444,901
Chittagong division 17,381,011,763 14,489,000,151
Sylhet division 1,470,580,894 1,189,600,750
Rajshahi division 7,042,320,828 6,495,230,894
Khulna division 4,151,988,855 3,597,882,692
Barisal division 994,648,565 772,909,575
Rangpur division 3,028,618,733 2,806,230,392
Mymensingh division 1,164,296,156 899,812,194
179,264,206,747 137,118,111,549
7.9 Business segment-wise concentration of loans and advances as

per CL
Corporate 114,268,773,216 86,839,155,707
SME 28,689,558,321 28,067,807,778
Short term agri credit 3,761,090,000 3,455,899,073
Consumer (including staff) 6,598,267,850 5,920,416,396
Others 25,946,517,361 12,834,832,595
179,264,206,747 137,118,111,549
FINANCIAL
171
7.10 Loans and advances including bills purchased and

discounted as per CL
Continuous loan
Consumer finance 3,476,707,674 2,738,419,963
Small and medium enterprise 22,256,621,260 21,892,111,930
Loans to BHs/MBs/SDs 398,612,145 276,174,603
Other continuous loans 31,991,528,702 27,775,315,651
58,123,469,781 52,682,022,147
Demand loans
Consumer finance 645,345,795 541,756,803
Loans to BHs/MBs/SDs 20,039,788 -
Other demand loans 23,934,076,194 20,076,574,116
27,277,046,114 23,151,724,529
Term loan
Consumer finance (including staff, other than HF) 2,476,214,381 2,640,239,630
Housing finance (HF) 25,519,413,170 12,550,047,581
Loans for professionals 880,603 1,948,736
Loans to BHs/MBs/SDs 7,571,655 6,661,675
Other fixed term loan 58,343,168,319 38,987,265,940
90,102,600,852 57,828,465,800
Short term loan
Short term agri credit 3,761,090,000 3,455,899,073
179,264,206,747 137,118,111,549
7.11 Security/collateral-wise concentration of loans and

advances including bills purchased and discounted
Collateral of movable/immovable assets 149,412,525,582 86,057,158,678
Local banks and financial institutions’ guarantee 4,399,751,912 3,980,742,065
Export documents 2,235,024,178 2,388,335,564
Fixed deposit receipts 6,900,692,558 8,331,397,013
Personal guarantee 6,453,205,313 6,664,571,443
Other securities 9,863,007,205 29,695,906,786
179,264,206,747 137,118,111,549
7.12 Particulars of loans and advances

i) Loans considered good in respect of which the Bank is fully secured 168,190,076,609 126,224,755,305
ii) Loans considered good for which the Bank holds no other 221,172,914 248,056,244
security than the debtors’ personal guarantee
iii) Loans considered good being secured by personal security of one 10,852,957,224 10,645,300,000
or more persons in addition to the personal security of the debtors
iv) Loans adversely classified; provision not maintained there against - -

179,264,206,747 137,118,111,549
FINANCIAL
v) Loans due by directors or officers of the banking company or any 1,757,091,256 1,858,818,100
of these either separately or jointly with any other persons.
vi) Loans due from companies or firms in which the directors of the - -
banking company have interests as directors, partners or managing
agents or in case of private companies as members;
vii) Maximum total amount of advances, including temporary advances 1,847,022,714 1,996,593,922
made at any time during the year to directors or employees of the
Bank or any of them either separately or jointly with any other person
viii) Maximum total amount of advances, including temporary advances - -
granted during the year to the companies or firms in which the
directors of the Bank are interested as directors, partners or
managing agents or in the case of private companies as members
ix) Due from banking companies - -
x) a) Amount of classified loan on which interest has not been charged
should be mentioned as follows:
Increase/(decrease) in specific provision 1,144,330,431 (196,204,799)
Amount of loan written off 1,516,812,121 2,108,806,541
Amount recovered against the loans previously written off 107,849,295 444,881,280
b) Amount of provision kept against loans classified as bad/loss as 3,224,075,507 2,079,745,076
at the Balance Sheet date
c) Amount of interest creditable to the interest suspense account 2,302,722,641 2,591,920,936
xi) Cumulative amount of written off loan:

Opening balance 10,470,681,046 8,805,293,785
Amount written off during the year 1,516,812,121 2,108,806,541
Interest charged 3,560,000 1,462,000
Recovery from written-off during the year* (107,849,295) (444,881,280)
11,883,203,872 10,470,681,046
* Recovery from written-off loans during the year include interest waiver of
Tk. 1,572,000 [Y2016: Tk. 11,835,000]
7.13 Cumulative amount of written off loans for which law suits have
been filed
Opening balance 15,737,399,687 13,628,593,146
During the year 1,516,812,121 2,108,806,541
17,254,211,808 15,737,399,687
Out of this cumulative amount of written-off loans, no suit could
be filed for recovery of Tk. 43.8 million for becoming time barred.
7.14 Classification of loans and advances

Unclassified
Standard 159,896,974,048 120,511,796,179
Special mention account 7,889,353,032 9,355,372,486
167,786,327,080 129,867,168,665
Classified
Substandard 2,840,907,426 1,750,246,665
Doubtful 521,370,466 466,870,669
Bad/Loss 8,115,601,775 5,033,825,550
11,477,879,667 7,250,942,884
179,264,206,747 137,118,111,549
FINANCIAL
173
7.15 Movements of classified loans and advances

Opening balance 7,250,942,884 7,962,051,830
Additions during the year 9,293,289,090 5,443,874,000
Reduction during the year (5,066,352,307) (6,154,982,945)
11,477,879,667 7,250,942,884
Loans and advances has been classified as per Bangladesh Bank letter reference no: DBI-1/32/2018-1082
dated 22 March 2018.
7.16 Net lease receivable

Gross lease receivable within 1 year 115,910,449 125,504,543
Gross lease receivable 1 - 5 years 638,830,811 710,157,776
Total lease rental receivable 754,741,261 835,662,319
Less: Unearned income 150,880,127 174,022,338
Net lease receivable 603,861,134 661,639,981
7.a Consolidated loans and advance

Loans, cash credits, overdrafts etc.
IFIC Securities Limited 4,031,904,359 4,140,646,771
171,593,194,706 132,138,872,955
Less: Inter-company transactions - -
171,593,194,706 132,138,872,955
8 Bills Purchased and Discounted

Payable in Bangladesh 8.1 11,029,263,524 8,481,801,746
Payable outside Bangladesh 8.1 673,652,876 638,083,619
11,702,916,400 9,119,885,365
8.1 Bill purchased and discounted

Payable in Bangladesh
Local bills/documents
Inland documentary bill purchase (IDBP) 1,315,396,432 1,507,874,841
Payment against documents-cash 127,852,644 355,707,464
Payment against documents-EDF 5,724,232,382 4,861,696,637
Payment against documents-forced (Inland) 843,396,126 507,654,967
Payment against documents-forced (Foreign) 673,091,858 513,142,225
Payment against documents-Others 150,999,876 198,071,221
8,834,969,317 7,944,147,355
Off-shore banking unit 2,194,294,207 537,654,391
11,029,263,524 8,481,801,746
Payable outside Bangladesh
Foreign documentary bill purchase (FDBP) 673,652,876 638,083,619
11,702,916,400 9,119,885,365
FINANCIAL
8.2 Residual maturity grouping of bill purchased and discounted

On demand 1,765,458,061 1,959,941,110
Up to 1 month 1,560,213,773 1,631,128,725
Over 3 moths but not more than 6 months 3,337,347,403 3,259,115,458
Over 6 months 2,200,496,913 -
11,702,916,400 9,119,885,365
8.a Consolidated bills purchased and discounted

11,702,916,400 9,119,885,365
9 Fixed Assets Including Premises, Furniture and Fixtures

Cost/revalued:
Land 475,118,759 475,118,759
Buildings and premises 1,902,617,204 1,891,680,528
Wooden furniture 249,945,814 248,371,766
Steel furniture 65,205,635 62,300,831
Computer equipment 737,808,649 715,903,279
Office equipment 219,597,186 204,176,631
Electrical & gas equipment 796,346,586 703,698,482
Leasehold improvement 261,520,676 254,466,084
Vehicles 119,768,760 111,849,395
Leased vehicles 47,600,000 47,600,000
Soft furnishing 11,468,191 11,369,205
Software 542,871,430 513,048,657
5,429,868,890 5,239,583,617
Capital work in progress * 232,657,045 130,257,471
5,662,525,935 5,369,841,088
Less: Accumulated depreciation 2,134,141,897 1,881,913,418
Written down value 3,528,384,037 3,487,927,670
Details of fixed assets are shown in “Annexure-D”

* Capital work in progress represents the amount paid for fire protection system, Data center, Data Management
System and Fusion Banking Essence.
9.a Consolidated fixed assets including premises, furniture and fixtures

3,539,338,093 3,498,780,629
FINANCIAL
175
10 Other Assets
Stationery and stamps 35,525,576 23,519,852
Suspense account 10.1 1,002,872,721 676,537,516
Advance, deposit and prepayments 10.2 6,804,282,523 3,209,033,338
Accrued interest & other income receivable 10.3 901,974,973 849,474,743
Investment in subsidiaries 10.4 2,233,231,960 2,228,860,390
Deferred tax assets 10.5 1,112,948,910 671,783,431
Revaluation account FDBP 1,791,292 1,791,292
Receivable others 38,742,987 38,000,578
12,131,370,942 7,699,001,140
12,292,441,552 7,790,544,123
10.1 Suspense account

Advance against bills, new branches 16,863,890 15,970,230
Advance against TA / DA 2,276,340 932,640
Law charges 184,012,612 157,187,734
Sanchayapatra paid 606,941,080 366,370,584
Wage earners development bond paid 44,468,281 13,180,454
Investment bond paid 22,305,287 914,721
Sundry debtors 123,930,599 120,221,016
CIB charge recovery 401,744 254,154
Cash incentive audit fees 110,400 110,400
EFTN receivable 959,133 531,429
VISA card 603,355 864,155
1,002,872,721 676,537,516
10.2 Advance, deposit and prepayments

Rent 289,314,164 270,305,144
Income tax 10.2.1 6,225,321,335 2,604,728,491
Security deposit including demand note 12,966,474 13,230,006
Car purchase 133,852,149 192,224,594
Insurance premium 9,975,024 385,310
Protested bills 23,740,892 22,478,394
Cash remittance 98,761,562 86,280,028
Supplier 9,214,902 18,045,350
Fixed assets 240,000 460,000
Lease vehicle 896,021 896,021
6,804,282,523 3,209,033,338
10.2.1 Advance income tax

Opening balance on 1 January 2,604,728,491 1,578,711,636
Add: Payment made during the year 796,454,642 1,026,016,855
Add: Prior years adjustment made during the year * 2,824,138,202 -
Closing balance 6,225,321,335 2,604,728,491
FINANCIAL
Year wise break up of Advance income tax:

Previous years (2003 to 2009) - 427,452,521
Year 2010 1,385,538,554 1,385,538,554
Year 2013 1,119,224,008 1,011,147,127
Year 2014 1,215,276,325 1,215,276,325
Year 2015 951,376,970 951,376,970
Year 2016 912,690,222 438,075,196
Year 2017 641,215,256 -
Set off with provision - earlier years * - (2,824,138,202)
6,225,321,335 2,604,728,491
* In earlier years, advance income tax was presented on net-basis which is shown in gross basis in 2017. As
such necessary adjustments of Tk. 2,824,138,202 has been made under the head of Advance income tax in
the year 2017.
10.3 Accrued interest & other income receivable

Treasury bonds and bills 410,601,747 440,909,952
Receivables from Government 41,272,375 41,272,375
Interest accrued on loans and advances 349,168,073 324,134,083
Investment on term and call 100,932,778 43,158,333
901,974,973 849,474,743
10.4 Investment in subsidiaries

2,233,231,960 2,228,860,390
10.5 Deferred tax assets

Deferred tax assets have been recognized and measured as per Bangladesh Accounting Standards 12: Income
Taxes and BRPD Circular no. 11 dated 12 December 2011 based on temporary difference in the carrying amount
of the assets and liabilities in the financial statements and its tax base. Calculation of deferred tax assets is as
follows:
Deferred tax assets 1,334,667,576 862,970,743

Deferred tax liabilities (221,718,666) (191,187,312)
Deferred tax assets/(liabilities) 1,112,948,910 671,783,431
i) Deferred tax on provision for loans and advances classified as

doubtful and bad & loss
Carrying amount 3,336,668,941 2,157,426,858
Tax base - -
Deductible/(taxable) temporary difference 3,336,668,941 2,157,426,858
Tax rate 40.00% 40.00%
Closing deferred tax assets/(liabilities) 1,334,667,576 862,970,743
Opening deferred tax assets/(liabilities) 862,970,743 1,041,964,428
Deferred tax (expense)/income (A) 471,696,833 (178,993,685)
FINANCIAL
177
ii) Deferred tax on fixed assets

Carrying amount 2,792,370,798 2,846,285,277
Tax base 2,238,074,133 2,368,316,998
Deductible/(Taxable) temporary difference 554,296,665 477,968,279
Tax rate 40.00% 40.00%
Closing deferred tax assets/(liabilities) (221,718,666) (191,187,312)
Opening deferred tax assets/(liabilities) (191,187,312) (200,661,955)
Deferred tax (expense)/income (B) (30,531,355) 9,474,643
Deferred tax (expense)/income (A+B) 441,165,478 (169,519,042)
10.6 Income generating other assets

Investment in subsidiary-IFIC Securities Limited 10.4 2,199,994,000 2,199,994,000
Investment in subsidiary-IFIC Money Transfer (UK) Limited 10.4 33,237,960 28,866,390
2,233,231,960 2,228,860,390
10.7 Non-Income generating other assets

Advance against bills, new branches 16,863,890 15,970,230
Advance against TA / DA 2,276,340 932,640
Law charges 184,012,612 157,187,734
Advance against insurance premium 9,975,024 385,310
Investment bond 22,305,287 914,721
Advance against rent 289,314,164 270,305,144
Advance income tax 6,225,321,335 2,604,728,491
Sundry debtors 123,930,599 120,221,016
Sanchaya patra paid 606,941,080 366,370,584
Wage earners development bond paid 44,468,281 13,180,454
Security deposit including demand note 12,966,474 13,230,006
Advance against car purchase 133,852,149 192,224,594
Protested bills 23,740,892 22,478,394
Accrued interest & other income receivable 10.3 901,974,973 849,474,743
CIB charge recovery 401,744 254,154
Deferred tax assets 10.5 1,112,948,910 671,783,431
Cash remittance 98,761,562 86,280,028
Accounts receivable others 38,742,987 38,000,578
9,886,115,171 5,449,233,396
10,047,185,781 5,540,776,379
10.a Consolidated other assets

Less: Investment in IFIC Securities Limited 10.4 2,199,994,000 2,199,994,000
Less: Investment in IFIC Money Transfer (UK) Limited 10.4 33,237,960 28,866,390
10,059,209,592 5,561,683,733
IFIC Money Transfer (UK) Limited 637,061 553,272
10,277,591,453 5,752,191,395
FINANCIAL
11 Non-banking assets
Through the verdict of honorable court under section 33(7) of the Artharin Adalat Act 2003, the Bank has got
an absolute ownership on few mortgaged properties. These properties were recorded at Tk. 373,474,800 as
non-banking assets in the year 2013.
12 Borrowing from other banks, financial institutions and agents

In Bangladesh 12.1 6,404,087,443 5,276,253,523
Outside Bangladesh 12.2 2,069,493,305 550,915,400
8,473,580,748 5,827,168,923
12.1 In Bangladesh
Obligation under lease finance 26,773,597 32,937,677
26,773,597 32,937,677
Refinance from Bangladesh Bank

Export Development Fund (EDF) 5,467,225,444 4,494,212,546
Small and Medium Enterprise (SME) 832,119,174 749,103,300
Long Term Financing Facility (LTFF) 77,969,228 -
6,377,313,846 5,243,315,846
6,404,087,443 5,276,253,523
12.2 Outside Bangladesh

Nepal Bangladesh Bank Limited 1,984,800,000 550,915,400
Standard Chartered Bank (Singapore) 84,693,305 -
2,069,493,305 550,915,400
Borrowing from outside Bangladesh is used for Off-shore Banking unit.
12.3 Secured and unsecured borrowing from other banks,

financial institutions and agents
Secured borrowing - -
Unsecured borrowing 8,473,580,748 5,827,168,923
8,473,580,748 5,827,168,923
12.4 Maturity grouping of borrowing from other banks, financial

institutions and agents
Payable
On demand 38,666,411 22,395,111
Up to 1 month 912,261,781 805,217,782
Over 3 months but not more than 1 year 4,014,232,069 2,054,666,454
Over 1 year but not more than 5 years 439,418,312 368,339,047
Over 5 years - -
8,473,580,748 5,827,168,923
FINANCIAL
179
12.a Consolidated borrowing from other banks, financial institutions and agents
In Bangladesh
IFIC Securities Limited - 334,565,573
6,404,087,443 5,610,819,096
Less: Inter -company transactions - -
6,404,087,443 5,610,819,096
Outside Bangladesh
IFIC Bank Limited 12.2 2,069,493,305 550,915,400
2,069,493,305 550,915,400
8,473,580,748 6,161,734,496
13 Subordinated debt
Institution wise subscription, redemption and outstanding amount of the Principal of the Bond are as follows:
Subscribers Subscribed Redemption of Outstanding Outstanding
Amount Principal 31 December 2017 31 December 2016
Sonali Bank Limited 1,000,000,000 - 1,000,000,000 1,000,000,000
Janata Bank Limited 1,000,000,000 - 1,000,000,000 1,000,000,000
Rupali Bank Limited 1,000,000,000 - 1,000,000,000 1,000,000,000
Agrani Bank Limited 500,000,000 - 500,000,000 500,000,000
3,500,000,000 - 3,500,000,000 3,500,000,000
* Details of Subordinated debt are explained in note: 2.2.6.9.
14 Deposits and other accounts

Current deposit and other accounts 14.1 30,668,116,838 20,062,650,490
Bills payable 14.2 2,238,152,090 2,075,645,107
Savings bank deposits 14.3 27,058,321,723 27,886,177,596
Fixed deposits 14.4 140,241,074,828 110,130,532,901
200,205,665,479 160,155,006,094
14.1 Current deposit and other accounts

Current accounts 16,097,196,971 10,159,614,547
IFIC AAMAR account 5,838,655,265 1,816,117,096
Foreign currency deposit 972,467,714 697,452,479
Resident foreign currency deposit 45,830,669 41,585,730
Exporters foreign currency account 5,410,636,302 5,154,508,496
Margin on letters of credit 1,611,822,555 1,460,771,373
Margin on letters of guarantee 332,769,212 338,047,232
Investors’ account credit balance 549,350 549,350
Q-cash, prepaid, cheque card 1,093,075 2,975,276
Sundry deposit 14.1.1 357,095,725 391,028,911
30,668,116,838 20,062,650,490
FINANCIAL
14.1.1 Sundry deposit

Sundry creditor 135,646,439 139,645,741
Lease deposit 25,383,032 26,023,913
Risk fund-lease, CCS & others 510,971 582,172
Clearing collection 40,287,044 49,022,752
Visa credit card 65,863,557 44,505,663
Sundry deposit BFF 25,912,400 25,912,400
FDD issued but not presented 13,001,395 12,739,055
IBC lodgment 62,595 62,595
Key deposit 5,664,500 4,712,500
CIB Charges 2,768,941 2,007,885
Credit report charge 1,847,368 -
Other sundry deposits 40,147,483 85,814,235
357,095,725 391,028,911
14.2 Bills payable

Payment order 2,230,597,345 2,067,975,012
Demand draft 5,737,767 5,745,117
Security deposit receipt 1,816,978 1,924,978
2,238,152,090 2,075,645,107
14.3 Savings bank deposit

Savings account 18,222,098,068 18,017,628,404
Super savings plus 7,270,200,846 8,340,057,011
Payroll savings 325,373,793 317,333,284
Sanchita-female savings 1,082,972,982 1,083,828,762
Student savings - duronto 157,445,075 127,081,696
Interest payable on savings deposit 230,959 248,439
27,058,321,723 27,886,177,596
14.4 Fixed deposit

Special notice deposit (SND) 19,779,157,220 22,878,541,220
Term deposit 14.4.1 112,267,520,646 80,325,286,909
Recurring deposit 14.4.2 8,154,214,626 6,884,738,242
Non resident foreign currency deposit (NFCD) 8,928,117 8,455,327
Export retention quota (ERQ) 31,254,219 33,511,203
140,241,074,828 110,130,532,901
14.4.1 Term deposit

Fixed deposits 95,864,403,286 62,879,550,900
Double return deposit scheme 9,183,547,333 9,943,130,477
Three years deposit plus 5,323,766 4,200,000
Monthly income scheme 5,415,049,683 6,113,136,155
Monthly income scheme - Arjon 122,372,295 144,822,295
Interest payable on term deposit 1,676,824,283 1,240,447,082
112,267,520,646 80,325,286,909
FINANCIAL
181
14.4.2 Recurring deposit

Pension savings scheme (PSS) 6,614,966,251 5,668,282,309
Pension savings scheme - Joma 17,760,200 12,103,335
Flexi DPS - Freedom 755,196,423 471,326,321
Millionaire dream plan 455,980,489 457,540,080
School savings plan 43,205,010 41,097,344
IFIC AGAMI 23,170,518 -
Interest payable on recurring deposit 243,935,735 234,388,853
8,154,214,626 6,884,738,242
14.5 Deposit and other accounts of the banks

Deposit form banks 14.9 20,607,563,000 382,920,000
Deposit from customers 179,598,102,479 159,772,086,094
200,205,665,479 160,155,006,094
14.6 Payable on demand and time deposit

Demand deposits
Current deposits 21,960,064,868 11,979,256,269
Savings deposits 2,435,228,168 2,509,733,624
Security deposits 1,816,978 1,924,978
Sundry deposit 5,227,334,761 4,412,425,427
Bills payable 2,236,335,112 2,073,720,129
31,860,779,887 20,977,060,427
Time deposits
Savings deposits 30,033,498,898 30,530,704,027
Fixed deposits 105,047,950,619 72,822,681,377
Special notice deposits 19,810,411,439 22,912,052,423
Deposits under schemes 13,453,024,636 12,912,507,840
168,344,885,592 139,177,945,667
200,205,665,479 160,155,006,094
14.7 Sector-wise concentration of deposits and other accounts

Government deposits 3,714,695,000 4,370,619,000
Other public sector 24,735,873,000 23,972,431,000
Deposit for banks 20,607,563,000 382,920,000
Foreign currency deposits 6,437,862,802 697,452,479
Private sectors 144,709,671,677 130,731,583,615
200,205,665,479 160,155,006,094
14.8 Unclaimed deposits

Current deposits 8,876,209 559,386
Savings deposits 26,276,492 9,884,707
Special notice deposits 11,021,134 791,814
Pay order 4,813,581 4,511,142
Demand Draft 583,710 477,421
Security deposit receipt 235,163 220,763
51,806,289 16,445,233
FINANCIAL
14.9 Residual maturity grouping of deposits and other accounts

Maturity grouping of deposit from banks
On demand 162,729,000 382,920,000
Up to 1 month 11,250,000,000 -
Over 1 month but not more than 3 months 9,194,834,000 -
Over 3 months but not more than 1 year - -
Over 1 year but not more than 5 years - -
Over 5 years - -
20,607,563,000 382,920,000
Maturity grouping of deposit from customers excluding
bills payable
On demand 1,215,437,463 2,071,698,108
Up to 1 month 21,314,463,719 22,937,667,765
Over 3 months but not more than 1 year 41,637,846,343 28,807,877,436
Over 5 years 1,958,728,781 12,071,698,108
177,359,950,389 157,696,440,987
Maturity grouping of bills payable
On demand 223,815,208 103,802,255
Up to 1 month 447,630,418 518,911,277
Over 1 month but not more than 3 months 447,630,418 415,109,021
Over 3 months but not more than 1 year 223,815,210 207,604,512
Over 1 year but not more than 5 years 447,630,418 415,109,021
Over 5 years 447,630,418 415,109,021
2,238,152,090 2,075,645,107
200,205,665,479 160,155,006,094
14.a Consolidated deposits and other accounts

Current deposits and other accounts
30,706,373,688 20,126,754,202
Less: Inter -company transactions 95,242,494 86,488,370
30,611,131,194 20,040,265,832
Bills payable
2,238,152,090 2,075,645,107
Savings bank deposit
27,058,321,723 27,886,177,596
FINANCIAL
183
Fixed deposits
140,241,074,828 110,130,532,901
200,148,679,835 160,132,621,436
15 Other liabilities
Specific provision for classified loans and advance 15.1 3,594,107,146 2,354,935,029
General provision for unclassified loans and advances 15.2 1,715,857,694 1,783,141,092
Provision for off balance sheet items 15.3 598,707,834 538,530,890
Provision for diminution in value of investments 15.4 339,557,533 445,923,927
Provision for nostro account 15.5 10,382,985 9,881,061
Provision for other assets 15.6 339,541,220 320,517,670
Provision for taxation 15.7 7,972,933,786 4,398,795,584
Interest suspense accounts 15.8 4,953,004,400 4,195,820,550
Incentive bonus 15.9 251,000,000 201,000,000
Rebate to good borrowers 15.10 51,870,000 41,870,000
Interest payable on borrowing and bond 53,840,584 48,970,537
Accrued expenses 37,845,053 21,673,765
Withholding Tax payable to government * 244,417,451 104,629,547
Withholding VAT payable to government * 56,486,370 34,127,139
Excise duty payable to government * 164,385,378 121,419,858
Dividend 2,814,447 2,814,447
Revaluation of investment abroad 30,946,297 30,946,297
Oman Exchange LLC 1,656,242 676,659
Sale proceeds of PSP & TC 1,527,464 515,971
Buying house commission 20,535,151 14,047,766
Recovery on court cases 7,170,350 4,346,521
Matured deposits 32,564,985 80,981
Govt. RMG fund * 1,123,970 1,897,019
Others 47,979,234 51,652,879
20,530,255,574 14,728,215,189
Interest payable to SCB for OBU 319,349 -
20,530,574,923 14,728,215,189
* Subsequently deposited to government exchequer.
15.1 Specific provision for classified loans and advances

Provision held at the beginning of the year 2,354,935,029 2,699,917,003
Less: Fully provided debts written off (998,762,158) (1,477,713,927)
Add: Recoveries of amounts previously written off 106,277,295 433,046,280
Add: Specific provision for the year 41 2,131,656,980 699,685,673
3,594,107,146 2,354,935,029
FINANCIAL
15.1.1 Specific provision required for classified loans and advances

Base for Required provision
Status of loans and advances Rate(%)
provision 31 December 2017 31 December 2016
Sub-standard 1,282,626,452 20.00% 256,525,291 196,324,818
Sub-standard- Short term agri. credit 18,258,280 5.00% 912,914 1,183,353
Doubtful 224,733,940 50.00% 112,366,970 77,597,868
Doubtful- Short term agri. credit 4,529,276 5.00% 226,464 83,914
Bad/loss 3,224,075,507 100.00% 3,224,075,507 2,079,745,076
4,754,223,455 3,594,107,146 2,354,935,029
Specific provision maintained (note-15.1) 3,594,107,146 2,354,935,029
Excess/(short) - -
Provision for loans and advances has been kept as per Bangladesh Bank letter reference no: DBI-1/32/2018-
1082 dated 22 March 2018.
15.2 General provision for un-classified loans & advances

Provision made/(release) during the year 41 (80,431,752) 505,554,055
1,688,322,303 1,768,754,055
Off-shore Banking Unit (OBU)
Provision held at the beginning of the year 14,387,037 19,100,000
Provision made/(release) during the year 41 13,148,354 (4,712,963)
27,535,391 14,387,037
1,715,857,694 1,783,141,092
15.2.1 General provision required for un-classified loans and advances

Required provision
Status of loans and advances Base for provision Rate(%)
Standard
Small and medium enterprise 23,386,622,101 0.25% 58,466,555 59,690,478
Consumer finance (house building) 24,274,674,360 1.00% 242,746,744 244,039,572
Loans to LP/BHs/MBs/SDs share etc. 426,451,203 2.00% 8,529,024 5,656,726
Consumer finance 4,546,545,842 5.00% 227,327,292 195,626,773
Consumer finance (card) 137,898,297 2.00% 2,757,966 -
Short term agri. and micro-credit 3,718,186,161 1.00% 37,181,862 85,468,352
Staff loan 1,757,091,255 0.00% - -
Other unclassified loan 98,895,965,711 1.00% 988,959,657 735,219,992
157,143,434,930 1,565,969,100 1,325,701,893
Special Mention Account (SMA)
Small and medium enterprise 490,543,232 0.25% 1,226,358 807,597
Consumer finance (house building) 755,607,363 1.00% 7,556,074 4,296,940
Loans to LP/BHs/MBs/SDs share etc. 415,432 2.00% 8,309 -
Consumer finance 56,275,912 5.00% 2,813,796 1,765,300
Consumer finance (card) 4,042,622 2.00% 80,852 -
Other unclassified loan * 6,582,468,470 1.00% 100,667,815 132,917,451
7,889,353,031 112,353,204 139,787,288
FINANCIAL
185
Off-shore banking unit

Un-classified loans 2,753,539,110 1.00% 27,535,391 14,387,037
2,753,539,110 27,535,391 14,387,037
1,705,857,695 1,479,876,218
General provision maintained (note-15.2) 1,715,857,694 1,783,141,092
Excess/(short) 10,000,000 303,264,874
* 1% additional provision has been maintained against restructured loan in line with the BRPD Circular No. 04 dated
29 January 2015. Details Restructured Loan are shown in Annexure-I.
15.3 Provision for off-balance sheet

Provision made/(release) during the year 41 60,176,944 59,810,890
598,707,834 538,530,890
15.3.1 Provision required for off-balance sheet exposure

Status Rate(%)
Acceptances and endorsements 19,010,992,711 1.00% 190,109,927 155,243,651
Letters of guarantee * 10,475,384,676 1.00% 117,259,878 109,932,413
Irrevocable letters of credit 19,364,242,284 1.00% 193,642,423 175,350,598
Bills for collection 9,769,560,590 1.00% 97,695,606 98,004,228
Required provision 58,620,180,261 598,707,834 538,530,890
Provision maintained (note-15.3) 598,707,834 538,530,890
Excess/(short) - -
* Additional provision of BDT 12,506,032 maintained for letter of guarantee as per Bangladesh Bank instruction.
15.4 Provision for diminution in value of investments

Provision made/(release) during the year 41 (106,366,394) 51,923,927
339,557,533 445,923,927
15.5 Provision for nostro account

Provision made/(release) during the year 41.1 501,924 19,061
10,382,985 9,881,061
15.6 Provision for other assets

Provision made/(release) during the year 41.1 19,023,550 24,101,447
339,541,220 320,517,670
15.6.1 Particulars of required provision for other assets

Status Rate(%)
Other assets for 6-12 months 20,614,865 50% 10,307,433 13,266,802
Other assets for more than 12 months 303,992,895 100% 303,992,895 276,480,940
Protested bills 23,740,892 100% 23,740,892 22,478,394
Required provision 338,041,220 312,226,136
Provision maintained (note-15.6) 339,541,220 320,517,670
Excess/(Short) 1,500,000 8,291,534
FINANCIAL
15.7 Provision for taxation

Provision made during the year 750,000,000 700,000,000
5,148,795,584 4,398,795,584
Adjustment made during the year 2,824,138,202 -
7,972,933,786 4,398,795,584
The provision for corporate tax has been made as per Income Tax Ordinance 1984 and the Bank has made
current tax provision in the books of accounts of 2017 after considering the prior years’ excess tax provisions.
Assessments up to year 2012 (other than 2005 and 2010) have been completed by the tax authority and there
is no tax liability remained outstanding up to year 2012. Overall tax position/status of the Bank are shown in
Annexure - “J”.
Year wise break up of Provision for taxation:
Previous years (up to Y2012 except Y2005 and Y2010) 1,597,680,869 1,597,680,869
Year 2005 140,397,922 140,397,922
Year 2010 1,454,854,995 1,454,854,995
Year 2013 1,090,000,000 1,090,000,000
Year 2014 1,290,000,000 1,290,000,000
Year 2015 950,000,000 950,000,000
Year 2016 700,000,000 700,000,000
Year 2017 750,000,000 -
Set of with “advance tax - earlier years * - (2,824,138,202)
Total 7,972,933,786 4,398,795,584
* In earlier years, advance income tax was presented on net-basis which is shown in gross basis in 2017. As
such necessary adjustments of Tk. 2,824,138,202 has been made under the head of Provision for tax in the
year 2017.
15.8 Interest suspense account

Balance at the beginning of the year 4,195,820,550 3,217,989,895
Add: Amount transferred to interest suspense account during the year 2,302,722,641 2,591,920,936
Less: Amount transferred to interest income account during the year (1,272,316,865) (1,264,170,008)
Less: Amount written-off during the year (273,221,927) (349,920,273)
4,953,004,400 4,195,820,550
15.9 Incentive bonus

Balance at the beginning of the year 201,000,000 130,000,000
Add: Provision made during the year 250,000,000 200,000,000
Less: Paid during the year (176,718,154) (104,284,362)
Less: Transfer to income during the year (23,281,846) (24,715,638)
251,000,000 201,000,000
15.10 Rebate to good borrowers

Balance at the beginning of the year 41,870,000 10,000,000
51,870,000 41,870,000
As per BRPD Circular No.-06 dated 19 March 2015, Circular No.-03 dated 16 February 2016 and Letter no.-
BRPD(P-1)/661/13/2016-6567 dated 08 October 2017, required provision regarding rebate to good borrower
has been maintained.
FINANCIAL
187
15.a Consolidated other liabilities

22,492,022,640 16,534,308,924
16 Share Capital
16.1 Authorized Capital
2,000,000,000 ordinary shares of Taka 10 each 20,000,000,000 20,000,000,000
16.2 Issued, subscribed and fully paid up capital
8,000,000 ordinary shares of Taka 10 each issued for cash 80,000,000 80,000,000
4,400,000 ordinary shares of Taka 10 each issued as rights share 16.2.1 44,000,000 44,000,000
563,821,907 ordinary shares of Taka 10 each issued as rights share 16.2.2 5,638,219,070 -
619,080,535 [Up to year 2016: 551,421,907] ordinary 6,190,805,350 5,514,219,070
shares of Taka 10 each issued for bonus share
11,953,024,420 5,638,219,070
16.2.1 The Bank raised paid-up capital of Tk. 44,000,000 through Rights Issue of 440,000 no. of ordinary shares at
a ratio of 1R:2 i.e. one rights share for two existing share at par in the year 1989 which was completed in the
month of January 1990, before change of denomination from Tk. 100 to Tk. 10 which was effected from 4
December 2011.
16.2.2 The Bank raised paid-up capital of Tk. 5,638,219,070 through Rights Issue of 563,821,907 no. of ordinary
shares at a ratio of 1R:1 i.e. one rights share for one existing share at par in the year 2017.
16.3 Issued, subscribed and fully paid up capital
Balance at the beginning of the year 5,638,219,070 5,034,124,170
Add: Bonus share issued 676,586,280 604,094,900
Add: Rights share issued 1R:1 5,638,219,070 -
Closing at the end of the year 11,953,024,420 5,638,219,070
16.4 Right share issue

IFIC Bank declared record date on 17 April 2017 and the subscriptions period from 31 May 2017 to 29 June
2017. Accordingly, the Bank has credited the Rights share to the Shareholders’ BO Accounts through CDBL and
transferred of Tk. 5,638,219,070 to Paid up capital on 19 July 2017, as such, number of Ordinary Shares of the
Bank stands at 1,195,302,442 and the paid-up capital stands at Tk. 11,953,024,420.
As per approval of BSEC and implementation schedule contained in the approved Rights Share Offer Document
(ROD), the Bank utilized full amount of Rights Share proceeds as per following manner:
Particulars of Capital Utilization Amount

Term Loan 4,000,000,000
Continuous Loan 1,000,000,000
Demand Loan 638,219,070
Total 5,638,219,070
As per condition of the approval letter of BSEC, the Rights Issue Proceeds utilization report has been audited by
foreign affiliated auditors i.e. M. J. Abedin & Co., Chartered Accountants (independent member firm of ‘Moore
Stephens International Limited’).
FINANCIAL
16.5 Issued, subscribed and fully paid up Capital-Shareholders’ Category

803,858,133 [Year 2016: 379,178,365] ordinary shares of Taka 10 8,038,581,330 3,791,783,650
each fully paid held by the Sponsors, Directors, Institutions, Foreign
investors & General Public.
391,444,309 [Year 2016: 184,643,542] ordinary shares of Taka 10 each 3,914,443,090 1,846,435,420
fully paid held by the Government of the People’s Republic of Bangladesh.
11,953,024,420 5,638,219,070
16.6 Shareholding by category
Mr. Salman F Rahman is a Sponsor as well as a Director of the Bank. However his shares are shown against
Directors’ Category.
The Government is representing in the Board of the Bank by nominating 03 (three) Directors and as such,
Sponsors & Directors are at present holding 38.67% shares of the Bank.
16.7 Distribution of paid up capital
FINANCIAL
189
16.8 Shareholding of Directors as at 31 December 2017

Sl. Name of the Directors Status Holding % Closing Position Opening Position
1 Mr. Salman F Rahman Chairman 2.00 23,912,781 11,279,614
2 Mr. Anwaruzzaman Chowdhury Independent Director Nil Nil Nil
3 Ms. Rabeya Jamali Independent Director Nil Nil Nil
4 Mr. Jalal Ahmed * Govt. nominated Director
5 Mr. A. R. M. Nazmus Sakib * Govt. nominated Director 32.75 391,444,309 184,643,542
6 Ms. Quamrun Naher Ahmed* Govt. nominated Director
7 Mr. M. Shah Alam Sarwar Managing Director Nil Nil Nil
* Directors nominated by the Ministry of Finance, Govt. of the People’s Republic of Bangladesh against its holding of 32.75%
shares in the Bank.
16.9 Solo Capital Adequacy Ratio (BASEL III)

As per section 13(2) of the Banking Companies Act, 1991 as amended 2013, BRPD circular no. 18 dated 21
December 2014, Guidelines on Risk Based Capital Adequacy (Revised Regulatory Capital Framework for banks
in line with Basel III) was issued and effective from 1 January 2015. Capital to Risk-weighted Asset Ratio (CRAR)
is calculated as follows:
Common Equity Tier 1 (going-concern capital)
Paid-up capital 16.2 11,953,024,420 5,638,219,070
General reserve 18 155,071,397 155,071,397
Retained earnings 21 3,184,939,855 2,269,105,114
20,417,576,401 12,711,622,424
Regulatory Adjustments
Goodwill and all other Intangible Assets 275,108,319 282,349,995
Deduction from Tier-1 Capital (95% of deferred tax assets) 1,267,934,198 819,822,206
Total Common Equity Tier 1 Capital 18,874,533,885 11,609,450,223
Tier-2 (Gone-Concern Capital)

General provision 1,715,857,694 1,783,141,092
Subordinated debt that meet the qualifying criterial for Tier 2 3,500,000,000 3,500,000,000
Revaluation Reserves as on 31 December 2014 (50% of Fixed 58,445,121 58,445,121
Assets and 10% of Equity Securities)
Revaluation reserve (60% for 2017 and 40% for 2016 of Tk. 58,445,121) 35,067,073 23,378,049
Total Tier-2 Capital 5,239,235,743 5,318,208,165
Total Regulatory Capital (A) 24,113,769,628 16,927,658,388
Total assets including off-balance sheet items 311,869,122,066 249,653,200,599

Total risk-weighted Assets 191,772,831,281 150,522,746,675
Required capital @11.25% [Y2016: 10.625%] (B) 21,574,443,519 15,993,041,834
Total capital surplus C=(A-B) 2,539,326,108 934,616,554
Capital to Risk-weighted Asset Ratio (CRAR)

Common Equity Tier 1 to RWA 9.84% 7.71%
Tier - 2 Capital to RWA 2.73% 3.53%
Capital to Risk-weighted Asset Ratio (CRAR) 12.57% 11.25%
Details computation of risk-weighted assets are shown in “Annexure - E”
FINANCIAL
16.9.a Consolidated Capital Adequacy Ratio (BASEL III)

As per section 13(2) of the Banking Companies Act, 1991 as amended 2013, BRPD circular no. 18 dated 21
December 2014, Guidelines on Risk Based Capital Adequacy (Revised Regulatory Capital Framework for banks
in line with Basel III) was issued and effective from 1 January 2015. The Capital to Risk-weighted Asset Ratio
(CRAR) is calculated as follows:
Common Equity Tier 1 (going-concern capital)
Paid-up capital 16.2 11,953,024,420 5,638,219,070
General reserve 18 155,071,397 155,071,397
Retained earnings 22 4,623,795,459 3,379,031,381
21,856,432,005 13,821,548,691
Goodwill and all other Intangible Assets 275,108,319 282,349,995
Deduction from Tier-1 Capital (95% of deferred tax assets) 1,267,934,198 819,822,206
Total Common Equity Tier 1 Capital 20,313,389,488 12,719,376,490
Tier-2 (Gone-Concern Capital)
General provision 1,715,857,694 1,783,141,092
Subordinated debt that meet the qualifying criterial for Tier 2 3,500,000,000 3,500,000,000
Revaluation Reserves as on 31 December 2014 (50% of Fixed 58,445,121 58,445,121
Assets and 10% of Equity Securities)
Revaluation reserve (60% for 2017 and 40% for 2016 of Tk. 58,445,121) 35,067,073 23,378,049
Total Tier-2 Capital 5,239,235,743 5,318,208,165
Total Regulatory Capital (A) 25,552,625,232 18,037,584,655
Total assets including off-balance sheet items 315,338,646,433 252,853,549,515

Total risk-weighted Assets 195,585,470,071 153,749,512,093
Required capital @11.25% [Y2016: 10.625%] (B) 22,003,365,383 16,335,885,660
Total capital surplus C=(A-B) 3,549,259,849 1,701,698,995
Capital to Risk-weighted Asset Ratio (CRAR)

Common Equity Tier 1 to RWA 10.39% 8.27%
Tier – 2 Capital to RWA 2.68% 3.46%
Capital to Risk-weighted Asset Ratio (CRAR) 13.06% 11.73%
17 Statutory reserve
Transferred from profit during the year 475,313,886 416,726,963
5,124,540,729 4,649,226,843
18 General reserve 155,071,397 155,071,397
General reserve also includes surplus provision of Tk. 99,300,000 against the restructured large loan of RR
Holdings which was transferred from specific provision in the year 2015 as per BRPD Circular No. 04 dated 29
January 2015 and extra ordinary foreign exchange gain of Tk. 28,559,248 transferred from profit in the year
2010.
FINANCIAL
191
19 Revaluation reserve against securities

HTM securities 19.1 3,857,293 3,500,060
HFT securities 19.2 2,372,256 9,887,364
6,229,549 13,387,424
19.1 Revaluation reserve HTM securities

Opening balance on 1 January 3,500,060 2,074,232
Gain/(loss) from revaluation on investments 357,233 1,425,828
3,857,293 3,500,060
19.2 Revaluation reserve HFT securities

Opening balance on 1 January 9,887,364 39,317,708
Gain/(loss) from revaluation on investments (7,515,108) (29,430,344)
2,372,256 9,887,364
19.a Consolidated revaluation reserve against securities

IFIC Bank Limited 19 6,229,549 13,387,424
6,229,549 13,387,424
20 Revaluation reserve against fixed assets 115,314,704 115,314,704
In terms of Bangladesh Accounting Standard (BAS)-16, “Property, Plant & Equipment” and instruction
contained in BRPD Circular No. 10 dated 25 November 2002 issued by Bangladesh Bank, gain on revaluation of
Tk. 115,314,704 has been credited to revaluation reserve account.
20.a Consolidated foreign currency translation reserve

Investment in joint venture/associate (NBBL) 123,372,642 (32,787,395)
Investment in joint venture/associate (OE LLC) 1,079,820 171,112
126,200,022 (27,858,562)
21 Surplus in profit and loss account

Net profit after tax for the year 2,067,734,907 1,214,115,772
Transfer to statutory reserve during the year (475,313,886) (416,726,963)
Issue of bonus shares (676,586,280) (604,094,900)
3,184,939,855 2,269,105,114
22 Consolidated surplus in profit and loss account

IFIC Money Transfer (UK) Limited (28,333,718) (22,225,736)
Share of profit of investment in joint venture/associate (NBBL) 1,230,548,875 885,890,399
Share of profit of investment in joint venture/associate (OE LLC) 33,221,675 38,157,796
Exchange (gain)/loss on investment in joint venture/associate (NBBL) (40,890,596) 2,633,352
Exchange (gain)/loss on investment in joint venture/associate (OE LLC) (1,079,820) (171,112)
4,623,795,459 3,379,031,381
FINANCIAL
23 Non-controlling interest (NCI)

IFIC Securities Limited 23.1 6,669 6,561
6,669 6,561
23.1 NCI of IFIC Securities Limited

Opening balance on 1 January 6,561 7,521
Add: Share of profit during the year 108 8
Add/(Less): Adjustment due to issuance of share during - (968)
the year to parent
6,669 6,561
24 Contingent liabilities
Irrevocable Letters of credit 24.3 19,364,242,284 17,535,059,809
58,620,180,261 52,602,485,841
24.1 Acceptances and endorsements

Back to back bills (local currency) 256,932,769 223,028,630
Back to back bills (foreign currency) 18,754,059,942 15,301,336,487
19,010,992,711 15,524,365,117
24.2 Letters of guarantee

Letters of guarantee (local currency) 10,395,552,720 9,525,648,442
Letters of guarantee (foreign currency) 79,831,956 216,989,704
10,475,384,676 9,742,638,146
Money for which the bank is contingently liable in respect of guarantee issued favoring:
Directors - -
Government 3,630,418,938 3,982,736,975
Banks and other financial institutions 2,064,335,316 2,221,858,468
Others 4,780,630,422 3,538,042,703
10,475,384,676 9,742,638,146
24.3 Irrevocable letters of credit

Letter of credit (LC) - cash sight 11,515,215,323 9,692,176,389
Letter of credit (LC) - back to back 7,432,527,629 7,275,304,861
Letter of credit (LC) - cash usance 416,499,332 567,578,559
19,364,242,284 17,535,059,809
24.4 Bills for collection

Inland bills collection 40,587,299 96,849,084
Foreign bills collection - 2,396,826
Inland documentary bills for collection 3,848,706,621 4,195,862,382
Foreign documentary bills for collection 5,880,266,670 5,505,314,477
9,769,560,590 9,800,422,769
FINANCIAL
193
Amoun t in BDT
Note 2017 2016
25 Income statement
Income
Interest, discount and similar income 26, 28 16,933,246,438 14,545,525,089
Dividend income 28 57,296,849 67,961,786
Fees, commission and brokerage 29.1 810,348,620 745,264,554
Gains less losses arising from dealing in securities 28 2,733,354 6,085,768
Gains less losses arising from investment securities 28.1 2,161,138 14,731,276
Gain less losses arising from dealing in foreign currencies 29.2 856,845,543 732,718,437
Income from non-banking assets - -
Other operating income 30 534,056,027 555,824,934
19,196,687,969 16,668,111,844
Expenses
Interest, fee and commission 27 9,434,132,813 8,182,432,849
Losses on loan and advances 244,828,037 281,172,341
Administrative expenses 31-34, 36-38 3,801,221,252 3,586,520,756
Other operating expenses 39, 40 1,014,148,208 843,709,120
Depreciation on banking assets 288,078,623 354,259,874
14,782,408,934 13,248,094,940
4,414,279,035 3,420,016,904
26 Interest income
Term loan-industrial 1,398,355,771 1,287,132,422
Term loan-consumer finance 3,827,663 6,883,959
Term loan-others 3,230,479,387 2,378,163,278
House building loan 2,216,642,276 1,047,956,899
Staff house building loan 71,972,406 79,738,990
Staff loan against PF 6,414 824,136
Transport loan 49,504,459 98,362,288
Agricultural Loan 190,201,410 151,602,933
Loan general 116,452,632 144,188,233
Secured overdraft 3,020,209,028 2,509,724,089
Over draft-staff salary 9,726,475 9,525,646
Over draft-garments 85,438,133 84,651,311
Cash credit 2,531,324,634 2,999,461,832
Lease finance 68,409,627 78,014,065
Inland documentary bill purchased (IDBP) 142,221,082 162,570,946
Foreign documentary bill purchased (FDBP) 19,036,847 7,439,247
Payment against document (cash) 26,494,941 37,876,462
Payment against document (forced) 71,753,043 51,039,407
Payment against document (EDF) 222,973,868 158,850,726
Payment against document (inland) 63,940,423 30,176,728
Payment against document (others) 65,189,430 70,254,879
Loan against imported merchandise 7,858,294 9,608,460
Loan against trust receipt (LTR) 628,350,250 659,066,537
FINANCIAL
Note 2017 2016
Export cash credit 8,496,146 9,535,916

Credit card 30,057,319 35,186,492
Money at call on short notice 19,832,917 18,441,111
Balance held outside Bangladesh 100,013,974 80,517,912
Balance held inside Bangladesh 9,036,718 4,809,893
Demand loan 420,882,182 305,043,924
Overdue interest 40,773,065 27,520,887
14,869,460,814 12,544,169,608
14,924,359,151 12,557,119,949
26.a Consolidated interest income

15,044,705,987 12,742,056,326
Less: Inter -company interest income (5,432,077) (115,822,317)
15,039,273,910 12,626,234,009
27 Interest paid on deposits, borrowings etc.

Interest paid on deposits
Current deposit 321,776,647 14,735,365
Saving bank deposit 955,873,590 961,011,355
Special notice deposit 764,924,134 638,028,039
Fixed deposit 4,672,235,335 4,120,199,597
Non resident FC deposit 221,260 212,898
Resident FC deposit 40,776 41,862
Pension savings scheme 605,604,171 513,629,504
Monthly income scheme 1,587,658,558 1,605,794,183
Foreign currency deposit 305,349 301,095
8,908,639,820 7,853,953,898
Interest paid on borrowings

Call deposit 60,650,439 13,127,194
Local banks accounts 420,556 22,263,889
Foreign banks accounts 18,436,308 11,164,038
Repurchase agreement (repo) 1,216,599 2,507,516
Bangladesh Bank- SME refinance 36,277,676 28,621,261
Payment against lease obligation 3,620,804 5,394,235
Interest on subordinated bond 295,989,726 167,940,068
Discount paid 1,833,440 2,947,988
Bangladesh bank- EDF 105,890,052 74,512,762
Bangladesh Bank- LTFF Refinance 1,157,394 -
525,492,994 328,478,951
9,434,132,813 8,182,432,849
FINANCIAL
195
Note 2017 2016
27.a Consolidated interest paid on deposits, borrowings etc.

9,444,510,137 8,337,161,876
Less: Inter -company interest paid (5,487,080) (115,822,317)
9,439,023,057 8,221,339,559
28 Investment income
Interest income
Treasury bills and bonds 1,503,843,819 1,584,345,558
Term placement 505,043,467 403,857,644
Reverse repo 2,733,354 6,085,768
Debentures - 201,938
2,011,620,640 1,994,490,908
Non interest income

Gain from sale of shares of listed companies 28.1 2,161,138 14,731,276
Dividend income - local 41,735,208 62,871,141
Dividend income - Foreign 15,561,641 5,090,645
Prize bond 18,200 12,000
59,476,187 82,705,062
2,071,096,827 2,077,195,970
28.1 Gain from sale of shares of listed companies

Gain on share sale 372,957,331 147,097,277
Less: Loss on sale of share (370,796,193) (132,366,001)
2,161,138 14,731,276
28.a Consolidated investment income

Less: Adjustments for investment in joint venture/associate (NBBL) (15,561,641) -
Less: Adjustments for investment in joint venture/associate (OE LLC) - (5,090,645)
2,105,410,059 2,081,237,711
29 Commission, exchange and brokerage

Commission 29.1 810,348,620 745,264,554
Exchange gain/(loss) 29.2 856,845,543 732,718,437
1,667,194,163 1,477,982,991
29.1 Commission
Bills purchased (Inland) 625,450 630,740
Bills purchased (Foreign) 3,948,515 3,784,139
Remittances (inland) 15,983,835 17,733,334
Remittances (foreign) 5,241,713 6,473,191
Letter of guarantee (LG)-local 86,085,991 109,119,227
FINANCIAL
Note 2017 2016
Letter of guarantee (LG)-foreign 973,322 767,932

Letter of credit (back to back) 103,257,506 115,693,127
Letter of credit (cash) 152,677,334 148,810,388
Letter of credit (others) 8,095,098 7,196,725
Wage earners development bond - 1,636,250
Local documentary bills collection (LDBC) 13,385,435 14,162,968
Inward foreign documentary bills collection (IFDBC) 192,834,093 187,718,499
Foreign documentary bills collection (FDBC) 7,536,363 7,097,869
Foreign bills collection (FBC) 502,500 127,300
Online charge 28,375,728 30,516,986
Add confirmation 12,855,332 13,193,748
Sanchaypatra 12,017,577 3,066,126
Foreign correspondent charges 146,426,967 52,989,857
Commission others 19,525,861 24,546,148
810,348,620 745,264,554
29.2 Exchange gain/(loss)

Rebate from foreign correspondent 65,162,291 70,816,158
Exchange gain from revaluation of FC 791,683,252 661,902,279
856,845,543 732,718,437
29.a Consolidated commission, exchange and brokerage

Exchange (gain)/loss for investment in joint venture/associate (NBBL) (43,523,948) (4,952,455)
Exchange (gain)/loss for investment in joint venture/associate (OE LLC) (908,708) (45,892)
1,717,435,369 1,552,391,886
30 Other operating income

Locker rent 11,501,952 10,887,897
Godown rent 2,228,720 1,849,050
Other rents 7,287,330 8,383,920
Cheque issuance fee 19,311,525 20,831,418
SWIFT charges recovery 32,697,244 54,376,909
Godown insurance recovery 620,450 564,000
Miscellaneous earning 100,144,497 165,976,383
Loan processing fees 170,340,106 143,545,451
Visa card fees and commission 37,362,147 31,921,125
Service charge on accounts 100,082,731 84,772,419
Other fees, commission & charges 29,963,248 31,815,687
Gain on sale of fixed assets 40.5 481,972 -
Management fee - Foreign* 21,682,211 506,576
533,704,133 555,430,835
Off-shore banking unit 333,694 382,099
534,037,827 555,812,934
* The Bank has received Management fee from NBBL under Management service/Technical Know-how fee agreement which
has credited Bank’s Nostro Account in 2017.
FINANCIAL
197
Note 2017 2016
30.a Consolidated other operating income

535,792,821 557,424,783
Less: Inter -company interest paid 55,003 -
535,737,818 557,424,783
31 Salary and allowances

Basic salary 1,035,935,571 1,035,434,344
House rent allowance 459,259,990 441,731,552
Conveyance allowance 43,488,563 32,105,831
Medical allowances 100,870,394 88,622,770
Entertainment allowance 63,328,289 66,677,941
Other allowances 90,944,067 75,386,101
Incentive bonus 250,000,000 200,000,000
Leave encashment 6,783,040 5,928,995
Festival bonus 190,502,501 180,746,207
Leave fare assistant 109,890,981 112,583,654
Provident fund- Bank’s contribution 98,943,780 101,369,722
Contribution to gratuity fund 127,500,000 172,500,000
2,577,447,176 2,513,087,117
Number of employees for the year 2017 who were paid remuneration less than Tk. 36,000 was nil ( year 2016:
nil). Total number of employees employed in the Bank at the end of the year 2017 were 2,512 (year 2016: 2,536).
31.a Consolidated salary and allowances

2,600,408,127 2,536,189,910
32 Rent, taxes, insurance, electricity etc.

Rent paid 436,434,866 471,962,811
Rates & taxes 10,919,799 11,848,785
Insurance premium 153,300,228 128,739,380
Electricity & water 86,995,799 78,069,527
687,650,692 690,620,503
32.a Consolidated rent, taxes, insurance, electricity etc.

702,972,532 706,221,522
FINANCIAL
Note 2017 2016
33 Legal expenses
Legal expenses 2,348,698 3,001,491
Professional fees 6,772,465 4,329,390
9,121,163 7,330,881
33.a Consolidated legal expenses

11,625,374 11,200,649
34 Postage, stamp, telecommunication etc.

Postage expenses 4,947,593 1,002,550
Telephone 21,770,071 35,149,945
Communication facilities 49,527,258 55,678,504
76,244,922 91,830,999
34.a Consolidated postage, stamp, telecommunication etc.

76,477,658 92,005,382
35 Stationery, printing, advertisement etc.

Printing stationery 14,195,425 12,120,476
Security stationery 16,258,486 12,879,654
Petty stationery 19,346,545 19,149,525
Computer stationery 11,892,668 11,587,234
Advertisement and publicity 371,194,397 209,845,145
432,887,521 265,582,034
35.a Consolidated stationery, printing, advertisement etc.

433,195,870 265,945,744
36 Managing Director’s salary

Basic salary 11,700,000 11,700,000
House rent allowance 300,000 300,000
Provident fund- Bank’s contribution 1,170,000 1,170,000
Festival bonus 1,950,000 1,950,000
15,120,000 15,120,000
In addition to the above Managing Director was paid incentive bonus of Tk. 1 million in both years.
FINANCIAL
199
Note 2017 2016
37 Directors’ fees
Meeting attendance fees 1,472,000 1,352,000
1,472,000 1,352,000
Each Director is paid Tk. 8,000 for attending each meeting as per latest BRPD letter no. 11 dated 4 October 2015.
37.a Consolidated Directors’ fees

1,621,500 1,495,750
38 Auditors’ fees
Statutory annual audit fees * 1,277,778 1,022,222
Interim audit fees - 575,000
1,277,778 1,597,222
* Audit fee is inclusive of tax and VAT.
38.a Consolidated Auditors’ fees

1,866,696 2,251,927
39 Depreciation and repair of bank’s assets

Depreciation
Buildings and premises 46,780,427 41,135,455
Steel furniture 3,097,343 4,497,813
Vehicles 11,620,201 18,757,045
Leased vehicles 6,164,080 5,035,562
Soft furnishing 643,907 1,111,382
Software 37,064,448 28,002,223
288,078,623 354,259,874
Repairs and maintenance
Property maintenance and repairs 133,381,449 130,305,584
Vehicles maintenance and repairs 70,974,903 69,549,048
204,356,352 199,854,632
492,434,975 554,114,506
FINANCIAL
Note 2017 2016
39.a Consolidated depreciation and repair of bank’s assets

495,842,413 557,399,835
40 Other expenses
Entertainment 34,028,212 30,250,108
Petrol, oil and lubricants 40.1 79,253,042 99,610,607
Training and internship 40.2 25,194,463 25,796,531
Traveling expenses 40.3 58,882,991 50,481,092
Casual and contractual service 40.4 168,502,857 141,411,373
Loss on sales of fixed assets 40.5 - 3,936,407
Subscription and donation 124,372,975 10,725,086
Corporate Social Responsibility (CSR) 80,838,564 62,432,520
Books, newspapers and magazines, etc. 1,309,401 1,568,167
NID verification charge 1,847,000 161,550
Reward and recognition 3,482,625 1,051,554
Uniforms and liveries 2,932,943 1,822,500
Annual General Meeting 9,713,453 9,694,905
Business development 16,234,107 22,916,496
Crockeries 1,255,313 1,096,395
Brokerage 2,591,116 107,950
Security services 81,822,408 73,562,098
Bank charges and commission 11,588,344 10,942,219
Recovery and sales agent 5,105,152 8,540,450
Rebate to good borrowers 10,000,000 31,870,000
Visa card expense 7,361,235 6,182,180
Risk charges 16,168,368 13,434,469
Bond & Rights Share issue 42,795,579 22,068,322
Miscellaneous 24,511,709 14,191,509
809,791,856 643,854,488
** Expenses incurred by the Bank shown in these Financial Statements are inclusive of VAT where applicable
as per VAT Act 1991.
40.1 Petrol, oil and lubricants

Petrol, oil and lubricants - pool car 19,961,157 35,894,926
Petrol, oil and lubricants - car purchase scheme 59,291,885 63,715,681
79,253,042 99,610,607
40.2 Training and internship expense includes daily allowance and traveling allowances.
40.3 Traveling expense represents foreign and local travel which include daily allowances and traveling allowance.
FINANCIAL
201
Note 2017 2016
40.4 Casual and contractual service

Driver salary - car purchase scheme 38,977,785 38,868,873
DSA salary and incentive 67,082,361 53,753,496
Casual and contractual - staff 62,442,711 48,789,004
168,502,857 141,411,373
40.5 Gain/ (loss) on sales of fixed assets

Cost of fixed assets sold
Steel furniture 452,828 787,091
Vehicles 5,936,750 3,823,750
40,422,279 57,708,028
Less : Accumulated depreciation
Steel furniture 272,724 610,600
Vehicles 5,936,743 3,757,443
35,602,911 47,484,230
Written down value 4,819,368 10,223,798
Sale proceeds of above fixed assets 5,301,340 6,287,392
Gain / (loss) on sales of fixed assets 481,972 (3,936,407)
40.a Consolidated other expenses

829,823,238 667,929,672
40.b Details of investment in joint ventures/associates - under equity method

i) Nepal Bangladesh Bank Limited
Opening balance 2,147,122,580 1,744,628,768
Add/ (less): New investment made during the year 1,048,347,452 -
Add/ (less): Share of post acquisition profit during the year 360,220,116 407,953,718
Add/ (less): Cash dividend received (15,561,641) -
Add/ (less): Effect of changes in foreign currency exchange rate 156,160,037 (5,459,906)
Closing balance 3,696,288,544 2,147,122,580
FINANCIAL
Note 2017 2016
ii) Oman Exchange LLC

Opening balance 56,046,963 86,223,917
Add/ (less): Share of post acquisition profit/(loss) during the year (4,936,121) (25,132,202)
Add/ (less): Effect of changes in foreign currency exchange rate 908,708 45,892
Add/ (less): Cash dividend received - (5,090,645)
Closing balance 52,019,550 56,046,963
iii) Share of post acquisition profit during the year

Nepal Bangladesh Bank Limited 360,220,116 407,953,718
Oman Exchange LLC (4,936,121) (25,132,202)
355,283,995 382,821,516
iv) Investment in joint ventures/associates-under equity method

A. Book value of investment
Nepal Bangladesh Bank Limited 2,383,257,623 1,291,386,223
2,402,055,498 1,309,275,390
B. Cumulative share of post acquisition profit

Nepal Bangladesh Bank Limited 1,313,030,921 855,736,357
1,346,252,596 893,894,152
Total (A+B) 3,748,308,094 2,203,169,542
41 Provision for loans, investments and other assets

Specific provision 15.1 2,131,656,980 699,685,673
General provision 15.2 (80,431,752) 505,554,055
Provision for off-shore banking unit 15.2 13,148,354 (4,712,963)
Provision for off-balance sheet exposure 15.3 60,176,944 59,810,890
Provision for diminution in value of investments 15.4 (106,366,394) 51,923,927
Other provisions 41.1 19,525,474 24,120,508
2,037,709,606 1,336,382,090
41.1 Other provisions

Provision for other assets 15.5 19,023,550 24,101,447
Provision for nostro account 15.6 501,924 19,061
19,525,474 24,120,508
41.a Consolidated provision for loans, investments and other assets

2,137,709,606 1,371,932,309
42 Provision for taxation

Current tax 750,000,000 700,000,000
Deferred tax expense/(income) 42.1 (441,165,478) 169,519,042
308,834,522 869,519,042
FINANCIAL
203
Note 2017 2016
42.1 Deferred tax expense/(income)

Deferred tax on provision for loans and advances (DF & BL) 10.5 (471,696,833) 178,993,685
Deferred tax on fixed assets 10.5 30,531,355 (9,474,643)
(441,165,478) 169,519,042
42.a Consolidated provision for current tax

807,210,974 717,569,284
42.b Consolidated deferred tax

IFIC Bank Limited 42.1 (441,165,478) 169,519,042
IFIC Securities Limited (82,805) 286,657
(441,248,283) 169,805,699
43 Receipts from other operating activities

Rent received 21,018,002 21,120,867
Other receipts 513,038,025 534,704,067
Capital gain 28.1 2,161,138 14,731,276
536,217,165 570,556,210
43.a Consolidated cash received from other operating activities

580,115,746 573,850,649
44 Cash paid for other operating activities

Postage, stamp, telecommunication etc. 76,244,922 91,830,999
Rent paid 436,434,866 471,962,811
Rates, taxes & utilities 10,919,799 11,848,785
Insurance premium 153,300,228 128,739,380
Electricity & water 86,995,799 78,069,527
Traveling expenses 58,882,991 50,481,092
Auditors’ fees 1,277,778 1,597,222
Directors’ fees 1,472,000 1,352,000
Legal expenses 9,121,163 7,330,881
Repairs and maintenance 204,356,352 199,854,632
Other expenses 685,435,436 526,024,825
1,724,441,334 1,569,092,154
44.a Consolidated cash paid for other operating activities

1,763,578,270 1,613,974,673
FINANCIAL
Note 2017 2016
45 Cash and cash equivalents

Cash in hand 2,242,987,643 2,006,140,356
Balance with Bangladesh Bank and its agent Bank (s) 13,235,784,939 12,061,014,307
Balance with other banks and financial Institutions 10,623,519,845 9,008,977,771
Prize Bonds 3,972,900 3,517,100
29,936,265,327 23,079,649,534
45.a Consolidated cash and cash equivalents

29,945,046,257 23,091,914,737
46 (Increase)/decrease of other assets

Suspense account 1,002,872,721 676,537,516
Advance, deposit and prepayments 578,961,188 604,304,847
Investment in subsidiaries 2,233,231,960 2,228,860,390
Receivable others 38,742,987 38,000,578
Closing other assets 4,052,196,334 3,664,557,458
Opening other assets 3,664,557,458 2,122,874,625
(387,638,876) (1,541,682,833)
46.a (Increase)/decrease of consolidated other assets

IFIC Bank Limited 46 (387,638,876) (1,541,682,833)
IFIC Money Transfer (UK) Limited (83,789) 6,134,905
(371,172,827) (1,518,288,761)
47 Increase/(decrease) of other liabilities

Withholding Tax payable to government 244,417,451 104,629,547
Withholding VAT payable to government 56,486,370 34,127,139
Excise duty payable to government 164,385,378 121,419,858
Dividend payable 2,814,447 2,814,447
Revaluation of investment abroad 30,946,297 30,946,297
Oman Exchange LLC 1,656,242 676,659
Sale proceeds of PSP & TC 1,527,464 515,971
Buying house commission 20,535,151 14,047,766
Recovery on court cases 7,170,350 4,346,521
Matured deposits 32,564,985 80,981
Govt. RMG fund 1,123,970 1,897,019
Others 47,979,234 51,652,879
Closing other liabilities 611,607,339 367,155,084
Opening other liabilities 367,155,084 402,743,513
244,452,255 (35,588,429)
FINANCIAL
205
Note 2017 2016
47.a Consolidated increase/(decrease) of other liabilities

IFIC Bank Limited 47 244,452,255 (35,588,429)
IFIC Securities Limited (3,835,035) 396,517,754
IFIC Money Transfer (UK) Limited 2,060,846 (9,874,162)
242,678,067 351,055,163
48 Earnings Per Share (EPS)*

Net profit after tax 2,067,734,907 1,214,115,772
Weighted average number of ordinary shares outstanding 1,024,525,336 882,068,050
Earning Per Share (EPS) 2.02 1.38
48.a Consolidated Earnings Per Share (EPS)*

Net profit after tax attributable to equity holders of the Bank 2,396,664,244 1,582,530,314
Weighted average number of ordinary shares outstanding 1,024,525,336 882,068,050
Consolidated Earning Per Share (EPS) 2.34 1.79
* Previous year’s figure has been restated.
Earnings Per Share (EPS) as shown in the face of the Profit and Loss Account is calculated in accordance with
Bangladesh Accounting Standards (BAS) 33: Earnings Per Share.
As the Bank issued Rights Share in July 2017, to calculate EPS, necessary adjustments have been made to the
weighted average number of shares to reflect Theoretical Ex Rights Share Price (TERP) for both years 2017
and 2016.
49 Net Operating Cash Flow per Share

Net cash flows from operating activities 1,326,848,448 757,575,787
Number of ordinary shares outstanding in respective years 1,195,302,442 563,821,907
Net Operating Cash Flow per Share 1.11 1.34
49.a Consolidated Net Operating Cash Flow per Share

Consolidated net cash flows from operating activities 1,561,723,249 694,685,971
Consolidated Net Operating Cash Flow per Share 1.31 1.23
50 Net Asset Value (NAV) per Share

Net assets value at the end of the year 20,539,120,655 12,840,324,552
Net Asset Value (NAV) per Share 17.18 22.77
50.a Consolidated Net Asset Value (NAV) per Share

Net assets value at the end of the year attributable to 22,104,176,280 13,922,392,257
equity holders of the Bank
Consolidated Net Asset Value (NAV) per Share 18.49 24.69
51 Events after the reporting period

Subsequent to the balance sheet date, the Board of Directors in its 724th Meeting held on 10 April 2018
recommended 12% stock dividend for the year ended 31 December 2017 which will be placed for approval of
the shareholders in the forthcoming 41st Annual General Meeting of the Bank.
FINANCIAL
Annexure-A
BALANCE WITH OTHER BANKS AND FINANCIAL INSTITUTIONS-OUTSIDE BANGLADESH

Name of the Bank and Financial Account Currency 31 December 2017 31 December 2016
Institutions type type FC amount Conversion rate Equivalent BDT FC amount Conversion rate Equivalent BDT
AB Bank Ltd., Mumbai CD USD 877,860 82.7000 72,598,995 615,509 78.7022 48,441,886
AB Bank Ltd., Mumbai CD EUR - - - 10,111 81.9408 828,479
Bank of Bhutan, Phuentosoling CD USD 28,513 82.700 0 2,357,996 4,076 78.7022 320,763
Bank of Tokyo- Mitsubishi,Tokyo CD JPY 202,582 0.7296 147,804 2,752,032 0.6712 1,847,164
Citi Bank N.A. New York CD USD 3,591,194 82.7000 296,991,757 1,197,839 78.7022 94,272,584
Commerz Bank AG, Frankfurt CD USD 3,327,810 82.7000 275,209,900 2,142,902 78.7022 168,651,125
Commerz Bank AG, Frankfurt CD EUR 267,388 98.3138 26,287,960 983,403 81.9408 80,580,806
Habib Bank, New York CD USD 1,378,878 82.7000 114,033,197 871,311 78.7022 68,574,097
Habib Bank AG, Zurich CD CHF 773 83.8487 64,807 3,677 76.5288 281,393
Habib Bank UK, London CD GBP - - - 21,621 96.2213 2,080,354
ICIC Bank Ltd., India CD USD 1,144,233 82.7000 94,628,081 456,227 78.7022 35,906,064
J.P. Morgan Chase Bank AG, Frankfurt CD EUR 78,118 98.3138 7,680,045 26,622 81.9408 2,181,444
J.P. Morgan Chase Bank, New York CD USD 8,969,473 82.7000 741,775,380 3,224,083 78.7022 253,742,400
J.P. Morgan Chase Bank, Sydney CD AUD 56,485 64.2414 3,628,695 64,610 56.4846 3,649,464
Mashreq Bank, PSC, India CD USD 319,387 82.7000 26,413,332 361,565 78.7022 28,456,000
Masreq Bank PSC, New York CD USD 1,733,307 82.7000 143,344,466 1,558,175 78.7022 122,631,818
MCB Bank Ltd, Pakistan CD USD (7,890) 82.7000 (652,534) 280,523 78.7022 22,077,783
Nations Trust Bank Ltd., Colombo CD USD 23,285 82.7000 1,925,674 24,780 78.7022 1,950,261
Nepal Bangladesh Bank Ltd., Nepal CD USD 370,135 82.7000 30,610,125 163,004 78.7022 12,828,810
Sonali Bank Limited, Kolkata CD USD 199,118 82.7000 16,467,052 170,545 78.7022 13,422,260
FINANCIAL
Sonali Bank (UK) Limited London CD GBP 18,618 110.7932 2,062,736 1,792 96.2213 172,461
Sonali Bank (UK)Limited London CD EUR - - - 119 81.9408 9,765
Sonali Bank, (UK) Limited London CD USD - - - 1,646 78.7022 129,527
Standard Chartered Bank, New York CD USD 5,789,702 82.7000 478,808,327 3,236,552 78.7022 254,723,738
Standard Chartered Bank, Kolkata CD USD 285,189 82.7000 23,585,130 435,559 78.7022 34,279,470
Standard Chartered Bank, London CD GBP 350,213 110.7932 38,801,251 645,532 96.2213 62,113,969

Standard Chartered Bank, London CD USD 19,152 82.7000 1,583,859 211,872 78.7022 16,674,782
Wells Fargo Bank, New York CD USD 1,893,965 82.7000 156,630,890 1,089,551 78.7022 85,750,083
Total 21,242,488 2,554,984,924 20,555,239 1,416,578,750
207
Annexure-B
208
DETAILS OF INVESTMENT IN SHARES
Amount in BDT
NAV or Mkt
Name of the Company Face value No. of share Cost/share Cost price Total value Gain/(loss)
price/share
Unquoted shares
Karma Sangsthan Bank 100 200,000 100.00 20,000,000 114.25 22,849,468 2,849,468
Central Depository Bangladesh Ltd. 10 2,284,722 10.00 22,847,220 33.01 75,422,456 52,575,236
Energypack Power Co. Ltd. 10 619,500 41.90 25,960,000 24.16 14,965,381 (10,994,619)
3,104,222 68,807,220 113,237,305 44,430,085
FINANCIAL
Quoted shares

National Housing Finance & Investment Ltd. 10 4,808,100 8.11 39,010,000 47.20 226,942,320 187,932,320
Power Grid Company Ltd. 10 3,123,057 69.13 215,882,261 52.20 163,023,575 (52,858,686)
Summit Alliance Port Ltd. 10 57,044 99.79 5,692,616 34.30 1,956,609 (3,736,007)
Eastland Insurance Company Ltd. 10 182,734 43.55 7,958,672 23.80 4,349,069 (3,609,603)
TITAS Gas Transmission and Distribution Ltd. 10 5,383,325 76.60 412,348,120 44.20 237,942,965 (174,405,155)
Unique Hotel and Resorts Ltd. 10 200,000 105.15 21,029,385 56.80 11,360,000 (9,669,385)
Fareast Life Insurance Ltd. 10 979,224 125.11 122,511,641 71.50 70,014,516 (52,497,125)
14,733,484 824,432,695 715,589,055 (108,843,640)
Mutual funds
IFIC Bank 1st Mutual Fund 10 36,347,613 6.88 250,000,000 10.22 371,363,562 121,363,562
ICB Employee 1st Mutual Fund 10 1,339,500 13.43 17,986,473 7.51 10,053,617 (7,932,856)
37,687,113 267,986,473 381,417,179 113,430,706
Foreign Investment
Investment in associate/joint venture
Nepal Bangladesh Bank Ltd. 29,543,243 80.67 2,383,257,623 215.54 6,367,744,688 3,984,487,065
Oman Exchange LLC 2,948 6,376.48 18,797,875 20,226.29 59,627,096 40,829,221
29,546,191 2,402,055,498 6,427,371,784 4,025,316,286
Other foreign investment
MCB Bank Ltd, Pakistan 175,508 2,001.49 351,277,414 159.00 27,906,523 (323,370,891)
29,721,699 2,753,332,912 6,455,278,306 3,701,945,394
Total 3,914,559,300 7,665,521,845 3,750,962,545
Required provision for investment in shares Amount in BDT
Particulars Cost price Total value Req. Provision
Unquoted shares 1 68,807,220 113,237,305 (10,994,619)
Quoted 824,432,695 715,589,055 (108,843,640)
Mutual funds 2 267,986,473 381,417,179 (7,932,856)
Sub-total 1,161,226,388 1,210,243,539 (127,771,115)
Investment in associate/joint venture3 2,402,055,498 6,427,371,784 -
4
Other foreign investment-MCB Bank Ltd. 351,277,414 27,906,523 (211,786,418)
Grand Total 3,914,559,300 7,665,521,845 (339,557,533)
1
Provision is kept against any unrealized loss for investment in unquoted shares and no unrealized gain is used to net off against the such unrealized loss.
2
Provision calculation for Investment in Mutual Funds
Higher of C (NAVx85%) Required
Name of the Company No. of share Cost/Share NAV/share NAV x 85% MV/share
&D - CP Provision
A B C D E F=(E-B) G=(A x F)
IFIC Bank 1st MF 36,347,613 6.88 12.02 10.22 6.10 10.22 - -
st
ICB EP 1 MF 1,339,500 13.43 8.83 7.51 7.10 7.51 (5.92) (7,932,856)
Total provision required (7,932,856)
Note: Provision is required if cost price is higher than 85% of NAV or MV.
BB Circular Reference: DOS Circular-3 Dated: 12 Mar 2015 and Circular-10 Dated: 28 June 2015.
3
Provision calculation for investment in associate/joint venture
Market
Lower of NAV Required
Name of the Company No. of share Cost/Share NAV/share Value (MV)/
& MV Provision
share
Nepal Bangladesh Bank Ltd. (Quoted) 29,543,243 80.67 104.61 215.54 104.61 -
Oman Exchange LLC (Unquoted) 2,948 6,376.48 20,226.29 N/A 20,226.29 -
FINANCIAL
Total provision required -
Provision against investment in associate/joint venture have been calculated as per instructions of Bangladesh Bank vide letter no DOS(SR)/1153/161/11/2017-1348 dated 23
March 2017. As per Bangladesh Bank instruction provision is to be maintained if cost is higher than lower of NAV and market value (if applicable).
4
As per Bangladesh Bank letter no-DOS(ASR)1153/161/11/2016-4995 dated 13 November 2016 two thirds provision has been maintained upto year 2017 and remaining
provision will be maintained in the year 2018.

209
Annexure-C
LOANS AND ADVANCES ALLOWED TO EACH CUSTOMER EXCEEDING

10% OF BANK’S TOTAL CAPITAL
BDT in million
Name of the Outstanding as on 31 December 2017 Amount

Sl. Name of clients
group Funded Non-funded Total classified
1 Banglalion Banglalion Communication Ltd. 2,416 - 2,416 -

Sub Total: 2,416 - 2,416 -
2 Bengal Bengal Communications Ltd. 2,749 - 2,749 -
Sub Total: 2,749 - 2,749 -
3 Bangladesh Rural Advance Committee 2,554 1,055 3,608 -
Sub Total: 2,554 1,055 3,608 -
Cassiopea Apparels Ltd. 980 1,372 2,351 -
Cassiopea Fashion Ltd. 17 30 47 -
4 Cassiopea Cassiopea Sweater Ltd. - 116 116 -
Elegant Accessories Ltd. 39 35 73 -
Elegant Washing Plant Ltd. - 131 131 -
Sub Total: 1,035 1,684 2,719 -
Dohatec Newmedia 1,374 9 1,383 -
5 Doha-Global
Global Voice Telecom Limited 1,122 2,344 3,467 -
Sub Total: 2,496 2,353 4,849 -
Ena Building Products Ltd. 210 - 210 -
Ena Ddj Construction Firm Ltd. - 545 545 -
6 ENA
Ena Properties Ltd. 1,409 70 1,479 -
Northern Power Solutions Limited 1,543 418 1,961 -
Sub Total: 3,163 1,032 4,195 -
7 Global LPG Ltd. 3,429 511 3,940 -
Sub Total: 3,429 511 3,940 -
8 Habib Hotel International Ltd. 2,299 333 2,632 -
Sub Total: 2,299 333 2,632 -
Armor Bangladesh Ltd 32 - 32 -
9 Islam Islam Garments Ltd. 1,057 2,260 3,317 -
Islam Knit Designs Ltd. 151 788 939 -
Sub Total: 1,240 3,048 4,288 -
Jmj Mollah Cold Storage Ltd 104 - 104 -
Kc Apparels Ltd 145 497 642 -
Kc Lingerie Ltd 15 84 99 -
10 Knit Concern
Knit Concern Ltd. 468 1,300 1,767 -
Pack Concern Ltd. 38 24 62 -
Zas Concern Ltd 7 3 10 -
Sub Total: 776 1,907 2,684 -
FINANCIAL
Name of the Outstanding as on 31 December 2017 Amount
Sl. Name of clients
group Funded Non-funded Total classified
11 Phonix Appollo Ispat Complex Limited 1,809 1,114 2,923 29

Sub Total: 1,809 1,114 2,923 29
12 Quick Real Estate Ltd. 3,405 - 3,405 -
Sub Total: 3,405 - 3,405 -
Powerpac Mutiara Keraniganj (Pvt) Ltd. 1,886 - 1,886 -
13 Sikder
R & R Holdings 1,697 - 1,697 -
Sub Total: 3,582 - 3,582 -
Silver Composite Textile Mills Ltd. 1,798 43 1,842 -
14 Silver Line
Silver Line Compusit Textile Mill Ltd. 491 952 1,443 -
Sub Total: 2,289 996 3,285 -
15 SQ Celsius Ltd. 1,819 870 2,689 -
Sub Total: 1,819 870 2,689 -
16 Uttara Traders (Pvt.) Ltd. 1,795 1,461 3,257 -
Sub Total: 1,795 1,461 3,257 -
17 Wisdom Attires Ltd. 2,449 343 2,792 -
Sub Total: 2,449 343 2,792 -
18 Raj Housing Ltd 3,526 - 3,526 -
Sub Total: 3,526 - 3,526 -
Grand Total: 42,832 16,706 59,537 29
FINANCIAL
211
Annexure - D
212
SCHEDULE OF FIXED ASSETS INCLUDING PREMISES, FURNITURE AND FIXTURE
Cost Depreciation/Amortization Written down
Particulars Balance as at Addition during Transfer from Adjustment Disposal during Balance as at Balance as at 1 Charged during Adjustment Disposal during Balance as at 31 value as at 31
1 January 2017 the year CWIP during the year the year 31 December 2017 January 2017 the year during the year the year December 2017 December 2017
Land 475,118,759 - - - - 475,118,759 - - - - - 475,118,759

Buildings and premises 1,891,680,528 187,369 10,749,307 - - 1,902,617,204 233,962,477 46,780,427 - - 280,742,904 1,621,874,300
Wooden furniture 248,371,766 5,328,489 4,853,556 4,216,908 4,391,089 249,945,814 86,660,635 19,976,448 247,232 3,199,040 103,190,810 146,755,004
Steel furniture 62,300,831 3,357,632 - - 452,828 65,205,635 37,607,891 3,097,343 - 272,724 40,432,510 24,773,124
Computer equipment 715,903,279 26,350,285 - 4,444,915 737,808,649 562,370,246 55,337,904 - 4,439,150 613,268,999 124,539,650
Office equipment 204,176,631 18,196,355 - - 2,775,800 219,597,186 167,878,867 18,761,600 - 2,775,780 183,864,687 35,732,499
Electrical & gas equipment 703,698,482 60,106,401 47,718,485 - 15,176,782 796,346,586 293,728,761 70,799,705 - 13,205,372 351,323,094 445,023,492
FINANCIAL
Leasehold improvement 254,466,084 14,021,059 - - 6,966,467 261,520,676 156,372,806 17,832,559 - 5,496,589 168,708,776 92,811,900

Vehicles 111,849,395 13,856,115 - - 5,936,750 119,768,760 87,471,247 11,620,201 - 5,936,743 93,154,705 26,614,055
Leased vehicles 47,600,000 - - - - 47,600,000 14,662,323 6,164,080 - - 20,826,403 26,773,597
Soft furnishing 11,369,205 376,635 - - 277,649 11,468,191 10,499,503 643,907 - 277,513 10,865,897 602,295
Software 513,048,657 4,023,954 25,798,819 - - 542,871,430 230,698,662 37,064,448 - - 267,763,110 275,108,319
5,239,583,617 145,804,293 89,120,167 4,216,908 40,422,279 5,429,868,890 1,881,913,418 288,078,623 247,232 35,602,911 2,134,141,897 3,295,726,994
Capital work in progress * 130,257,471 191,519,741 (89,120,167) - - 232,657,045 - - - - 232,657,045
Total 5,369,841,088 337,324,034 - 4,216,908 40,422,279 5,662,525,935 1,881,913,418 288,078,623 247,232 35,602,911 2,134,141,897 3,528,384,037
* Capital work in progress represents the amount paid for fire protection system, Data centre, Data Management System and Fusion Banking Essence.
Cost Depreciation/Amortization Written down
Particulars Balance as at Addition during Transfer from Adjustment Disposal Balance as at Balance as at Charged during Adjustment Disposal during Balance as at 31 value as at 31
1 January 2016 the year CWIP during the year during the year 31 December 2016 1 January 2016 the year during the year the year December 2016 December 2016
Land 475,118,759 - - - - 475,118,759 - - - - - 475,118,759

Buildings and premises 1,337,951,477 - 553,729,051 - - 1,891,680,528 192,827,022 41,135,455 - - 233,962,477 1,657,718,051
Wooden furniture 118,694,149 5,096,569 135,161,271 - 10,580,223 248,371,766 73,133,162 21,798,384 - 8,270,911 86,660,635 161,711,131
Steel furniture 59,242,462 3,785,765 59,695 - 787,091 62,300,831 33,720,678 4,497,813 - 610,600 37,607,891 24,692,940
Computer equipment 668,481,187 53,640,165 - - 6,218,073 715,903,279 458,926,481 109,151,004 - 5,707,239 562,370,246 153,533,033
Office equipment 196,964,697 10,604,860 - - 3,392,926 204,176,631 136,914,295 34,182,638 - 3,218,066 167,878,867 36,297,764
Electrical & gas equipment 394,944,685 36,138,704 293,363,368 - 20,748,275 703,698,482 248,261,436 62,213,139 - 16,745,814 293,728,761 409,969,721
Leasehold improvement 237,653,740 27,138,059 - - 10,325,715 254,466,084 135,509,829 28,375,229 - 7,512,252 156,372,806 98,093,278
Vehicles 115,673,145 - - - 3,823,750 111,849,395 72,471,645 18,757,045 - 3,757,443 87,471,247 24,378,148
Leased vehicles 47,600,000 - - - - 47,600,000 9,626,761 5,035,562 - - 14,662,323 32,937,677
Soft furnishing 12,653,637 547,543 - - 1,831,975 11,369,205 11,050,029 1,111,382 - 1,661,908 10,499,503 869,702
Software 293,931,990 35,451,020 183,665,647 - - 513,048,657 202,696,439 28,002,223 - 230,698,662 282,349,995
3,958,909,928 172,402,685 1,165,979,032 - 57,708,028 5,239,583,617 1,575,137,777 354,259,874 - 47,484,233 1,881,913,418 3,357,670,199
Capital work in progress * 846,594,774 449,641,729 (1,165,979,032) - 130,257,471 - - - - - 130,257,471
Total 4,805,504,702 622,044,414 - - 57,708,028 5,369,841,088 1,575,137,777 354,259,874 - 47,484,233 1,881,913,418 3,487,927,670
* Capital work in progress represents the amount paid for data warehouse.
Annexure -E
COMPUTATION OF RISK WEIGHTED ASSETS
Solo Basis
1.0 Risk Weighted Assets for Credit Risk Balance Sheet Exposures BDT in Million
Sl. Exposure Type Rating Risk Weight Exposure RWA

1 2 3 4 5 6 = (4x5)
a. Cash 0 2,242.99 -
b. Claims on Bangladesh Government (other 0 26,108.70 -
than PSEs) and Bangladesh Bank
c. Claims on other Sovereigns & Central Banks 0.5 - -
d. Claims on Bank for International Settlements, 0 - -
International Monetary Fund and European
Central Bank
e. Claims on Multilateral Development Banks -
(MDBs):
i) IBRD, IFC, ADB, EBRD, IADB, EIB, EIF, NIB, 0 - -
CDB, IDB, CEDB
ii) Others MDBs 1 0.20 - -
2,3 0.50 - -
4,5 1.00 - -
6 1.50 - -
Unrated 0.50 - -
f. Claims on Public Sector Entities (other than 1 0.20 - -
Government) in Bangladesh 2,3 0.50 - -
4,5 1.00 - -
6 1.50 - -
Unrated 0.50 20.00 10.00
g. Claims on Banks and NBFIs -
i) Maturity over 3 months 1 0.20 303.91 60.78
2,3 0.50 119.07 59.54
4,5 1.00 - -
6 1.50 - -
Unrated 1.00 77.69 77.69
ii) Maturity less than 3 months 0.20 15,783.06 3,156.61
h. Claims on Corporate (excluding equity 1 0.20 3,475.14 695.03
exposure) 2 0.50 15,818.00 7,909.00
3,4 1.00 23,454.64 23,454.64
5,6 1.50 - -
Unrated 1.25 23,022.76 28,778.44
h(1) Claims on SME SME 1 0.20 - -
SME 2 0.40 95.87 38.35
SME 3 0.60 644.24 386.54
SME 4 0.80 76.31 61.05
SME 5 1.20 - -
SME 6 1.50 - -
Unrated (small enterprise & 0.75 2,694.01 2,020.51
<BDT 3m)
Unrated (small enterprise 1.00 15,421.12 15,421.12
having ≥ BDT 3m & Medium
enterprise)
FINANCIAL
213
Sl. Exposure Type Rating Risk Weight Exposure RWA
1 2 3 4 5 6 = (4x5)
i. Claims under Credit Risk Mitigation PSE - -
Banks & NBFIs - -
Corporate 4,414.72 2,916.46
Retail 414.10 4.94
SME 587.16 157.94
Consumer finance 2,497.94 59.62
Residential property - -
Commercial real estate - -
j. Claims categorized as retail portfolio (excluding SME, Consumer Finance 0.75 419.98 314.98
and Staff loan) upto 1 crore
k. Consumer finance 1.00 1,781.62 1,781.62
l. Claims fully secured by residential property 0.50 40,144.41 20,072.20
m. Claims fully secured by Commercial real estate 1.00 21,390.39 21,390.39
n. 1. Past Due Claims that is past due for 60 days or more (Risk weights are -
to be assigned net of specific provision):
i) Where specific provisions are less than 20 percent of the outstanding 1.50 3,860.50 5,790.75
amount of the past due claim
ii) Where specific provisions are no less than 20 percent of the 1.00 4,304.90 4,304.90
outstanding amount of the past due claim
iii) Where specific provisions are more than 50 percent of the outstanding 0.50 920.40 460.20
amount of the past due claim
2. Claims fully secured against residential property that are past due for 1.00 1,073.90 1,073.90
more than 60 days and/or impaired and specific provision held there-
against is less than 20% of outstanding amount
3. Loans and claims fully secured against residential property that are 0.75 94.30 70.73
past due for more than 60 days and/or impaired and specific provision
held there-against is no less than 20% of outstanding amount
o. Capital Market Exposure 1.25 - -
p. Investment in equity and other regulatory capital instruments issued by 1.25 67.61 84.51
other banks and merchant Banks/Brokerage Houses/Exchange Houses
which are not listed in the Stock Exchanges (other than those deducted
from capital) held in banking book
q. Investments in venture capital 1.50 - -
r. Investments in premises, plant and equipment and all other fixed assets 1.00 3,253.28 3,253.28
s. Claims on all fixed assets under operating lease 1.00 538.84 538.84
t. All other assets - -
i) Claims on GoB & BB 0.00 7,328.60 -
ii) Staff loan/Investment 0.20 1,757.09 351.42
iii) Cash items in Process of Collection 0.20 - -
iv) Claims on Off-shore Banking Units (OBU) 1.00 2,914.61 2,914.61
v) Other assets (net off specific provision, if any) 1.00 6,303.30 6,303.30
Sub-Total 233,425.16 153,973.89
FINANCIAL
2.0 Risk Weighted Amount for Credit Risk Off-Balance Sheet Exposures BDT in million
Sl.
Exposure Type BB’s Rating Grade* Risk Weight Exposure RWA
No.
1 2 3 4 5 6 = (4x5)
a) Claims on Bangladesh Government and 0
Bangladesh Bank
b) Claims on other Sovereigns & Central Banks*
c) Claims on Bank for International Settlements, 0
International Monetary Fund and European
Central Bank
d) Claims on Multilateral Development Banks
(MDBs):
i) IBRD, IFC, ADB, AFDB, EBRD, IADB, EIB, EIF, 0
NIB, CDB, IDB, CEDB
ii) Others MDBs 1 0.20
2,3 0.50
4,5 1.00
6 1.50
Unrated 0.50
e) Claims on Public Sector Entities (other than 1 0.20
Government) in Bangladesh 2,3 0.50
4,5 1.00
6 1.50
Unrated 0.50
f) Claims on Banks & NBFIs
i) Maturity over 3 months 1 0.20
2,3 0.50
4,5 1.00
6 1.50
Unrated 0.50
ii) Maturity less than 3 months 0.20
g) Claims on Corporate (excluding equity 1 0.20 3,269.78 653.96
exposure) 2 0.50 6,137.74 3,068.87
3,4 1.00 1,742.08 1,742.08
5,6 1.50 - -
Unrated 1.25 10,405.87 13,007.34
h) Claims under retail exposure 0.75 10.31 7.73
h(1) Claims under SME Credit Rating-wise 1 0.20 - -
exposure 2 0.40 5.80 2.32
3 0.60 56.25 33.75
4 0.80 9.01 7.21
5 1.20 - -
6 1.50 - -
Unrated (small 0.75 61.68 46.26
enterprise & <BDT
3.00m)
Unrated (small 1.00 2,373.03 2,373.03
enterprise having ≥
BDT 3.00m & Medium
enterprise)
FINANCIAL
215
Sl.
Exposure Type BB’s Rating Grade* Risk Weight Exposure RWA
No.
1 2 3 4 5 6 = (4x5)
i) Consumer Loan 1.00
j) Claims fully secured by residential property 0.50
k.) Claims fully secured by commercial real estate 1.00
l) Investments in venture capital 1.50
m) All other assets 1.00
Sub-Total 24,071.56 20,942.55
3.0 Capital Charge for Market Risk (Balance Sheet Exposures)

Risk
Sl. Capital
Market Risk Risk Weight Weighted
No. Charge
Asset
a Interest Rate Related Instruments 18.61 10.00 186.06
b Equities 189.36 10.00 1,893.64
c Foreign Exchange Position 160.56 10.00 1,605.60
d Commodities - - -
Sub-Total 368.53 3,685.30
4.0 Capital Charge for Operational Risk (Basic Indicator Approach)
Risk
Sl. Capital
Operational Risk Risk Weight Weighted
No. Charge
Asset
a Gross Income 1,317.11 10.00 13,171.07
Sub-Total 1,317.11 10.00 13,171.07
Grand Total Risk Weighted Assets 191,772.82
FINANCIAL
Annexure -F
RELATED PARTY DISCLOSURES
Name of Directors and their interest in different entities
Sl Name Status with the Status with interested Name of the firms/companies in which they
No. Bank entities have interest
1 Mr. Salman F Rahman Chairman Chairman GMG Airlines Limited
Chairman Abahani Limited
Vice Chairman Bangladesh Export Import Co. Ltd.
Vice Chairman Beximco Pharmaceuticals Ltd.
Vice Chairman Beximco Synthetics Ltd.
Vice Chairman Shinepukur Ceramics Ltd.
Vice Chairman Independent Television Ltd.
Vice Chairman Beximco Holdings Ltd.
Vice Chairman Beximco Computers Ltd.
Vice Chairman Beximco Engineering Ltd.
Vice Chairman Beximco Pharma Center for Bio & Industrial
Research Ltd.
Vice Chairman Beximco Fashions Ltd.
Vice Chairman Beximco Property Development and
Management Ltd.
Vice Chairman RR Washing Ltd.
Vice Chairman International Knitwear and Apparels Ltd.
Vice Chairman Sonali Ansh Limited
Vice Chairman Esses Exporters Ltd.
Shareholder Beximco Power Company Ltd.
Shareholder Beximco Petroleum Ltd.
Shareholder I & I Services Ltd.
2 Mr. Monirul Islam Independent Chairman IFIC Securities Ltd.
Director (Nominated by IFIC Bank Ltd.)
(Up to 20/12/2017)
Director IFIC Money Transfer (UK) Ltd.

(Nominated by IFIC Bank Ltd.)
Director Nepal Bangladesh Bank Ltd., Nepal

Chairman Monir Associates Ltd.

Managing Director Cosmo Sizing & Weaving Mills Ltd.
Proprietor Pano Sourcing
3 Ms. Rabeya Jamali Independent Director IFIC Securities Ltd.
(Since 21/12/2017)

Alternate Director Nepal Bangladesh Bank Ltd., Nepal

Partner Jamali & Morshed
FINANCIAL
217
Sl Name Status with the Status with interested Name of the firms/companies in which they
No. Bank entities have interest
4 Mr. Anwaruzzaman Independent Director IFIC Money Transfer (UK) Ltd.
Chowdhury Director (Nominated by IFIC Bank Ltd.)
Director IFIC Securities Ltd.

Alternate Director Oman Exchange LLC

Chairman Kipling
5 Mr. Jalal Ahmed Govt. nominated Chairman Nepal Bangladesh Bank Ltd., Nepal
Chairman IFIC Money Transfer (UK) Ltd.


Alternate Director Oman Exchange LLC

Additional Secretary (UN) Economic Relations Division, Ministry of

Finance, Bangladesh Secretariat, Dhaka.
Director Bangladesh Submarine Cable Co. Ltd.
Director British American Tobacco Bangladesh Co.
Ltd.
Director Bangladesh Services Ltd.
6 Mr. A. R. M. Nazmus Govt. Director Oman Exchange LLC
Sakib nominated (Nominated by IFIC Bank Ltd.)
Director
Additional Secretary Finance Division, Ministry of Finance,

Bangladesh Secretariat, Dhaka.
7 Ms. Quamrun Naher Govt. Director IFIC Money Transfer (UK) Ltd.
Ahmed nominated (Nominated by IFIC Bank Ltd.)
Director
Additional Secretary Financial Institutions Division, Ministry of
Finance, Bangladesh Secretariat, Dhaka.
8 Mr. M Shah Alam Managing Director Grameen Bank
Sarwar Director (Nominated by Govt. of Bangladesh)
Director Nepal Bangladesh Bank Ltd., Nepal

Director Oman Exchange LLC



FINANCIAL
Related party transactions
i) Significant contracts with the Bank wherein Directors have interest during the year is nil.
ii) Share issued to Directors and Executive without consideration or exercisable at a discount is nil.
iii) The details of the related party transactions are as follows:
Amount in BDT
As at and for the year ended
Nature of Transaction
1) Name of the Party : IFIC Securities Ltd.
Relationship with the company : Subsidiary
A. Capital investment 2,199,994,000 2,199,994,000
B. Current & SND Account 95,498,391 87,029,931
C. BO account balance 659 6,269,312
2) Name of the Party : IFIC Money Transfer (UK) Limited

Relationship with the company : Subsidiary
A. Capital investment 33,237,960 28,866,390
3) Name of the Party : Oman Exchange LLC

Relationship with the company : Associate
A. Capital investment 18,797,875.00 17,889,167.00
B. Cash Dividend received - 5,090,645
4) Name of the Party : Nepal Bangladesh Bank Ltd.

Relationship with the company : Associate
A. Capital investment 2,383,257,623 1,291,386,223
B. Borrowing 1,984,800,000 550,915,400
C. Cash Dividend received 15,561,641 -
D. Management fee received 21,682,211 -
iv) Lending policies in respect of related party:

In case of approval of Loan to related parties, the Bank follows the BRPD circular no. 04 dated 23 February 2014
and requirement of section 27(1) of the Banking Companies Act 1991 as amended.
v) Business other than banking business with any related concern of the Directors as per section 18(2) of Bank
Companies Act 1991:
Bank has executed maintenance agreement with Beximco Computers Limited for maintenance of Nostro
Reconciliation Software with a fees of BDT 50,000 per year. Bank has also a service agreement with Bangladesh
Export Import Co. Limited for Broadband Internet Service with a fees of BDT 60,000 per month. Bank also paid
BDT 3,707,888 and BDT 1,701,780 to Independent Television Ltd. and Independent Publications Ltd. respectively
in the year 2017.
vi) Investment in the securities of Director and their related concern:
Relation with the Relation with Investee

Investee Entity Related Director Investment at Cost
Bank Entity
NIL
FINANCIAL
219
Annexure -G
DISCLOSURE ON AUDIT COMMITTEE OF THE BANK

a) Particulars of members of the Audit Committee
Sl. Name Status with the Bank Status Educational Qualification
Mr. Monirul Islam

1 Independent Director B. A. (Hons), M. A.
Chairman
Ms. Rabeya Jamali LL.B. (Hons), LL.M. in Banking and
2 Independent Director
(Since 21 December 2017) Financial Law
3 Mr. Anwaruzzaman Chowdhury Independent Director Member MBA
B.S.S. (Hons), M. S. S. in Public

4 Mr. Jalal Ahmed Director Member
Administration
* The Audit Committee of the Board has been reconstituted by the Board of Directors of the Bank in its 720th Meeting held on 28 January
2018. Mr. Monirul Islam was the Chairman upto 20 December 2017. Ms. Rabeya Jamali has been selected as Chairman on 28 January 2018.
b) Particulars of meetings held by the Audit Committee during the period from 01 January to 31 December 2017
Sl. Meeting No Meeting held on
1 107 Audit Committee Meeting

th
16 January 2017

th
27 February 2017
3 108 (Adjourned) Audit Committee Meeting

th
20 March 2017

th
05 April 2017

th
09 May 2017

th
04 June 2017
7 112th Audit Committee Meeting 19 June 2017
8 113th Audit Committee Meeting 26 July 2017
9 114th Audit Committee Meeting 27 September 2017
10 115th Audit Committee Meeting 30 October 2017
11 116th Audit Committee Meeting 13 November 2017

th
17 December 2017
Evaluation of the Audit Committee regarding strengthening of Internal Control System

The Internal Control & Compliance Division (ICCD) of the Bank reviews the Internal Control System of the Bank and ensures
that internal controls are considered properly managed and supervised throughout all Divisions and Branches of the Bank.
As per guideline of Bangladesh Bank, the Audit committee, in the meetings held during 2017, with various issues/reports/
findings on financial reporting process, the system of internal control, the audit process, and the process for monitoring
compliance with laws and regulations and its own code of business conduct – submitted by ICCD, have reviewed and
evaluated.
During discussion on some memo(s) and Compliance Report, the Committee has advised Management to devise a system
for arresting occurrence of the irregularities on recurring basis and ICCD of the Bank has also been advised to take
necessary steps for rectification of all irregularities as mentioned in the memo(s)/reports at the earliest. The Committee
has also advised the Head of ICC to formulate matrix/format to monitor status of compliance on regular basis and devise
some innovative tools/system for reducing number of irregularities in the Branches as well as enabling them to monitor
up-to-date status of compliance.
All Audited/Un-audited yearly/quarterly Financial Statements submitted during 2017 have been explained and endorsed to
the Audit Committee whether the statements reflect the complete and concrete information and whether the statements
are prepared according to existing rules & regulations and standards enforced in the country and as per relevant prescribed
accounting standards set by Bangladesh Bank.
The Committee has submitted compliance report to the Board on quarterly basis during 2017 regarding compliance of
recommendations made in internal and external audit reports and the Bangladesh Bank inspection reports.
FINANCIAL
Annexure -H
FINANCIAL HIGHLIGHTS OF THE BANK
Currency/
Sl. Particulars 31 December 2017 31 December 2016
percentage
1 Paid up capital BDT 11,953,024,420 5,638,219,070
2 Total capital BDT 24,113,769,628 16,927,658,388
3 Capital surplus BDT 2,539,326,108 934,616,554
4 Total assets BDT 253,248,941,805 197,050,714,758
5 Total deposits BDT 200,205,665,479 160,155,006,094
6 Total loan & advances BDT 179,264,206,747 137,118,111,549
7 Total contingent liabilities & commitments BDT 58,620,180,261 52,602,485,841
8 Credit deposit ratio % 85.04 81.64
9 Percentage of classified loan against total loans & % 6.40 5.29

advances
10 Profit after tax & provision BDT 2,067,734,907 1,214,115,772
11 Amount of classified loans BDT 11,477,879,667 7,250,942,884
12 Provision kept against classified loans BDT 3,594,107,146 2,354,935,029
13 Provision surplus/deficit BDT 11,500,000 311,556,408
14 Cost of fund % 4.22 4.21
15 Interest earning assets BDT 216,239,475,667 166,860,268,961
16 Non-interest earning assets BDT 37,009,466,138 30,190,445,797
17 Return on Investment (ROI) % 7.81 6.73
18 Return on Assets (ROA) % 0.92 0.65
19 Income from investment BDT 2,071,096,827 2,077,195,970
20 Earnings per share BDT 2.02 1.38
21 Net income per share BDT 2.02 1.38
22 Net Asset Value (NAV) BDT 20,539,120,655 12,840,324,552
23 Net Asset Value (NAV) per share BDT 17.18 22.77
24 Net Operating Cash Flow Per Share (NOCFPS) BDT 1.11 1.34
25 Price earning ratio Times 8.92 15.18
FINANCIAL
221
Annexure - I
222
DISCLOSURE OF RESTRUCTURED LOAN
BDT in million
Down Payment Outstanding Amount Total provision as at 31

December 2017 Outstanding
Due date At the time New/fresh Outstanding
Sl. Type of Date of Present as at 31
Name of the borrower of 1st of taking disbursement as at 31
No. loan restructure Required Realized status December
Installment NOC from amount after December Required Maintained 2016
BB NOC 2017
1 Power Pac - Mutiara KPP TL (O) 07.12.2015 16.90 16.90 07.03.2017 1,546.10 Nil 1,787.51 35.75 35.75 SMA(RST) 1,905.62
Plant Ltd.
2 M/s R&R Holdings TL (O)-1 07.12.2015 8.20 8.20 07.03.2017 746.00 Nil 913.13 18.26 18.26 SMA(RST) 925.73
FINANCIAL
3 M/s R&R Holdings TL (O)-2 07.12.2015 7.70 7.70 07.03.2017 702.00 Nil 783.67 15.67 15.67 SMA(RST) 867.06
Total 32.80 32.80 2,994.10 3,484.31 69.69 69.69 3,698.41
Annexure- J
STATEMENT OF TAX POSITION
As at 31 December 2017
Tax provision Excess/ Advance

Accounting Assessment Tax as per
in Financial (shortage) income tax Remarks
year year assessment
Statements provision paid
Assessments up to Y2012 (except Y2005 & Y2010) have been completed by
Balance of provision for up to Y2012
1,597,680,869 - 1,597,680,869 - the Tax Authority and there is no tax liability remained outstanding against
(except Y2005 & Y2010)
related years
Honorable High Court Division of Supreme Court
2005 2006-2007 140,397,922 - 140,397,922 - Assessment was completed with loss, however, advance tax paid for 2005
amounting to Tk. 90.27 mln was adjusted in subsequent years.
2010 2011-2012 1,454,854,995 1,508,170,344 (53,315,349) 1,385,538,554 Honorable High Court Division of Supreme Court
Bank received the order from Taxes Appellate Tribunal which are under
2013 2014-2015 1,090,000,000 1,122,148,439 (32,148,439) 1,119,224,008
review of the Management for next course of action.
Bank received the order from Taxes Appellate Tribunal which are under
2014 2015-2016 1,290,000,000 1,339,332,883 (49,332,883) 1,215,276,325
review of the Management for next course of action.
2015 2016-2017 950,000,000 1,029,797,191 (79,797,191) 951,376,970 The Commissioner of Taxes (Appeals)
2016 2017-2018 700,000,000 - - 912,690,222 Assessment yet to be completed by the Tax authority
2017 2018-2019 750,000,000 - - 641,215,256 Not yet due
Annexure-K

Off-shore Banking Unit
Balance Sheet

Particulars
USD Taka USD Taka
PROPERTY AND ASSETS

Cash - - - -
Cash in hand (including foreign currency) - - - -
Balance with Bangladesh Bank and its agent - - - -
Bank(s) (including foreign currency)
Balance with other banks and financial - - - -
institutions
In Bangladesh - - - -
Outside Bangladesh - - - -
Money at call and on short notice - - - -
Investments - - - -
Government securities - - - -
Other investments - - - -
Loans and advances 3 33,295,515 2,753,539,110 18,280,349 1,438,703,682
Loans, cash credits, overdrafts etc. 3.1 6,762,333 559,244,903 11,448,845 901,049,291
Bills purchased and discounted 3.2 26,533,182 2,194,294,207 6,831,504 537,654,391
Fixed assets including premises, furniture and fixtures - - - -
Other assets 4 1,947,650 161,070,610 1,163,157 91,542,983
Non banking assets - - - -
Total assets 35,243,165 2,914,609,720 19,443,506 1,530,246,665

Liabilities
Borrowing from other banks, financial 5 34,028,915 2,814,191,232 18,984,396 1,494,113,753
Institutions and agents
Deposit and other accounts - - - -
Current deposits and other accounts - - - -
Bills payable - - - -
Savings bank deposits - - - -
Fixed Deposits - - - -
Other liabilities 6 558,920 46,222,673 301,525 23,730,656
Total liabilities 34,587,834 2,860,413,905 19,285,921 1,517,844,409
FINANCIAL
223
Particulars
USD Taka USD Taka
Capital / Shareholders’ equity

Paid up capital - - - -
Statutory reserve - - - -
General Reserve - - - -
Revaluation reserve against securities - - - -
Revaluation reserve against fixed assets - - - -
Surplus in profit and loss account 7 655,330 54,195,815 157,585 12,402,256
Total shareholders’ equity 655,330 54,195,815 157,585 12,402,256
Total liabilities and shareholders’ equity 35,243,165 2,914,609,720 19,443,506 1,530,246,665
OFF BALANCE SHEET ITEMS

Contingent liabilities - - - -
Acceptances and endorsements - - - -
Letters of guarantee - - - -
Irrevocable letters of credit
Bills for collection - - - -
Other contingent liabilities - - - -
Other Commitments
Documents credit and short term trade - - - -
-related transactions
Forward assets purchased and forward deposit placed - - - -
Undrawn note issuance and revolving - - - -
underwriting facilities
Undrawn formal standby facilities, credit lines - - - -
and other commitments
Total off-Balance Sheet exposures including - - - -
contingent liabilities
These financial statements should be read in conjunction with the annexed notes.
FINANCIAL
Off-shore Banking Unit

Particulars Note
USD Taka USD Taka
Interest income 8 1,801,879 149,015,399 1,169,367 92,031,779

Interest paid on deposits, borrowings etc. 9 1,138,054 94,117,062 1,004,819 79,081,438
Net interest income 663,825 54,898,337 164,549 12,950,341
Investment Income - - - -
Commission, exchange and brokerage - - - -
Other operating income 4,035 333,694 4,855 382,099
Total operating income 667,860 55,232,031 169,404 13,332,440
Salaries and allowances 12,530 1,036,216 11,819 930,184

Rent, taxes, insurance, electricity etc. - - - -
Legal expenses - - - -
Postage, stamp, telecommunication etc. - - - -
Stationery, printing, advertisement etc. - - - -
Managing Director’s salary - - - -
Directors’ fees - - - -
Auditors’ fees - - - -
Charges on loan loss - - - -
Depreciation and repair of bank’s assets - - - -
Other expenses - - - -
Total operating expenses 12,530 1,036,216 11,819 930,184
Profit/(Loss) before provision 655,330 54,195,815 157,585 12,402,256
Provision for loans, investments and other assets

Specific Provision - - - -
General Provision - - - -
Provision for off-balance sheet exposures - - - -
Provision for diminution in value of investments - - - -
Provision for other assets - - - -
Total provision - - - -
Profit/(Loss) before taxes 655,330 54,195,815 157,585 12,402,256
These financial statements should be read in conjunction with the annexed notes.
FINANCIAL
225
OFF-SHORE BANKING UNIT
1 Status of the unit

Off-shore Banking Units of IFIC Bank Limited, governed under the rules and guidelines of Bangladesh Bank.
The Bank obtained the Off-shore Banking Unit permission from Bangladesh Bank vide letter no. BRPD (P-
3) 744 (104)/2009-4233 dated 17 November 2009. The Bank commenced the operation of its Off-shore
Banking Unit from 10 May 2010. Presently the Bank has 1 (one) unit in Dhaka. The principal activities of the
unit is to provide all kinds of commercial banking services to its customers through its off-shore Banking
Unit in Bangladesh.
2 Significant accounting policies and basis of preparation of financial statements

2.1 Basis of accounting
The Off-shore Banking Unit maintains its accounting records in USD from which accounts are prepared
according to the Banking Companies Act 1991, Bangladesh Accounting Standards and other applicable
directives issued by Bangladesh Bank.
2.2 Foreign currencies transaction and translation to presentation currency
Foreign currency transactions are converted into equivalent USD using the ruling exchange rates on the
dates of respective transactions as per BAS 21: The Effects of Changes in Foreign Exchange Rates.

Particulars Note
USD Taka USD Taka
3 Loans and advances

3.1 Loans, cash credits, overdrafts etc.
Term loan 6,762,333 559,244,903 11,448,845 901,049,291
6,762,333 559,244,903 11,448,845 901,049,291
3.2 Bills purchased and discounted
Inside Bangladesh 26,533,182 2,194,294,207 6,831,504 537,654,391
26,533,182 2,194,294,207 6,831,504 537,654,391
33,295,515 2,753,539,110 18,280,349 1,438,703,682
4 Other assets
Interest receivable on term loan 1,533,898 126,853,397 1,100,563 86,616,736
Interest receivable on bills discount 413,752 34,217,213 62,594 4,926,247
1,947,650 161,070,610 1,163,157 91,542,983
5 Borrowing from other banks, financial

Institutions and its agents
In Bangladesh:
IFIC Bank Limited 33,004,812 2,729,497,927 18,984,396 1,494,113,753
33,004,812 2,729,497,927 18,984,396 1,494,113,753
Outside Bangladesh 1,024,103 84,693,305 - -
34,028,915 2,814,191,232 18,984,396 1,494,113,753
FINANCIAL
Particulars Note
USD Taka USD Taka
6 Other liabilities
Interest on borrowing from abroad 3,862 319,349 - -
Due to Head Office 555,058 45,903,324 301,525 23,730,656
558,920 46,222,673 301,525 23,730,656
7 Surplus in profit and loss account

Opening balance 157,585 12,402,256 106,687 8,374,971
Less: Adjustment/ payment for the year (157,585) (12,402,256) (106,687) (8,374,971)
Add: Addition during the year 655,330 54,195,815 157,585 12,402,256
655,330 54,195,815 157,585 12,402,256
2017 2016
Particulars Note
USD Taka USD Taka
8 Interest income
Term Loan 1,011,120 83,619,631 516,884 40,679,911
Bills discount 790,759 65,395,768 652,483 51,351,868
Interest on loans and advances 1,801,879 149,015,399 1,169,367 92,031,779
9 Interest paid on deposits, borrowings etc.

Interest paid on IFIC Bank Limited 1,138,054 94,117,062 1,004,819 79,081,438
1,138,054 94,117,062 1,004,819 79,081,438
FINANCIAL
227
FINANCIAL
STATEMENTS OF THE
SUBSIDIARIES
DIRECTORS’
IFIC SECURITIES LIMITED
Directors’ Report
Respected Shareholders,
The Board of Directors is pleased to present the 7th Annual Report of IFIC Securities Ltd. (IFICSL) for the year
ended on 31 December 2017. In the report, IFICSL’s operational performance of the year 2017 as compared to
2016 has been evaluated and analyzed within prevailing business environment. The information and analysis
may be read in conjunction with the audited financial statements presented herewith.
Bangladesh Capital Market in 2017

The Capital Market of the country passed a challenging year in 2017. The market has recovered substantially
compared to 2016. The average daily trade volume of Dhaka Stock Exchange Limited has increased by
87.50% compared to 2016. The market participation by the stakeholders has also increased significantly. In
2017, the trade volume of IFICSL has increased by 44.72% compared to 2016.
Our business
IFICSL has been established with the objectives of rendering efficient and innovative brokerage services to
the prospective investors of the country, as well as to ensure adequate return on equity to the shareholders.
IFIC Securities Limited is a fully owned subsidiary of International Finance Investment and Commerce
Bank Limited (IFIC Bank Ltd) and was incorporated with the Registrar of Joint Stock Companies and Firms,
Bangladesh as a public limited company on 02 November 2010 under Companies Act, 1994. IFICSL bought
the brokerage license from IFIC Bank in 2010 and is authorized to undertake the following activities:
zz Opening of Beneficiary owners (BO) account;
zz Buy and Sell of Securities in Dhaka Stock Exchange Ltd;
zz Margin Loan facilities to its clients;
zz Settlement of buying and selling of Securities in Dhaka Stock Exchange through CDBL;
zz Process IPO applications on behalf of clients;
IFICSL started its operation on 10 March 2011 by taking over all the Asset & Liabilities of the Capital Market
Division of its parent company IFIC Bank Ltd except the Own Investment Portfolio of IFIC Bank Ltd to comply
with the instructions of Bangladesh Bank.
Capital
The authorized capital of IFICSL is BDT 3,000 million of which BDT 2,200 million has been paid up. Total
shareholders’ equity at the end of December 2017 stood at BDT 2,445.39 million including retained earnings
of BDT 245.39 million. The Paid-up capital represents the face value of 220,000,000 shares of BDT 10 each
fully subscribed by the shareholders.
Profit & Operating Results

Total operating income of IFICSL for the year 2017 was BDT 244.31 million against a total expenses of BDT
47.44 million. Total profit before provision stood at BDT 196.87 million during 2017. For the year 2017, the net
profit was BDT 39.75 million, after keeping BDT 100.00 million and BDT 57.21 million as provision for margin
loan to clients and income tax respectively.
Loans & Advances

Total margin loan facilities provided to the investors by IFICSL was BDT 4,031.90 million as on 31 December
2017. At the end of 2016 the borrowing of IFICSL was BDT 334.57 million of which BDT 147.69 million was
borrowed from Dhaka Bank Ltd, Foreign Exchange Branch, and BDT 186.88 million was borrowed from Prime
Bank Ltd, SBC Tower Branch. During 2017 the management of IFICSL has settled all loans outstanding with
Prime Bank Ltd and Dhaka Bank Ltd.
Own Portfolio
Managing own investment portfolio is a regulatory requirement and also a core business objective of IFICSL
to ensure higher return on equity. IFICSL has established an investment process and has been maintaining
its own portfolio following this process in compliance with the Investment Policy of IFICS. During 2017 IFIC
Securities Ltd has participated in a number of IPO and bidding under book building method. The active
FINANCIAL STATEMENTS OF
229
THE SUBSIDIARIES Annual Report 2017
participation of IFICSL in the capital market has enabled the management to earn a capital gain of BDT 42.14
million during 2017. During 2016 IFICSL earned BDT 1.68 million as capital gain from investment in own
portfolio.
Support Services from IFIC Bank Ltd

IFIC Bank Ltd is providing professional support services to the IFICSL in the field of HRM, Support Services
and IT. As such entire functions of these fields are being managed from the respective IFIC Bank Limited
divisions minimizing overall cost of operations.
Rotation/Re-election of Directors
According to clause 52 of the Articles of Association of the Company, the Directors shall retire by rotation at
the 6th Annual General Meeting. However, as per clause 53 they are eligible for re-election.
Appointment of Auditors and fix-up their remuneration

In the 6th Annual General Meeting of the company MJ ABEDIN & Co. Chartered Accountants were reappointed
as the statutory auditors of the company up to the conclusion of the 7th Annual General Meeting.
Dividend
In order to strengthen the capital base of the Company and also to ensure sufficient liquidity for smooth
operations, the Board of Directors of the company did not recommend any dividend for the year 2017.
Acknowledgement
The Board of Directors would like to express its gratitude and thanks to our valued shareholders, customers,
bankers, regulators, DSE, CDBL, BSEC and other stakeholders for their continuous support and assistance.
The Board has special thanks for the management and employees for their commitments and hard work
about the company.
For and on behalf of the Board of Directors.
Chairman
230 Annual Report 2017 THE SUBSIDIARIES
Gg, †R, Av‡e`xb GÛ †Kvs
PvU©vW© GKvD‡›U›Um&
M. J. ABEDIN & CO
CHARTERED ACCOUNTANTS
Telephone Off : +880-2-9675340, 9666508 National Plaza (3rd Floor)
Fax : +880-2-58616524 109, Bir Uttam C.R. Datta Road,
E-mail : [email protected] Dhaka-1205, Bangladesh
Web Site : www.mjabedin.com
INDEPENDENT AUDITORS’ REPORT

To the Shareholders of IFIC Securities Limited
We have audited the accompanying financial statements of IFIC Securities Limited which comprises
the statement of financial position as at 31 December 2017 and statement of Profit or Loss and Other
comprehensive income, statement of changes in equity and statement of cash flows for the year then ended
and a summary of significant accounting policies and other explanatory information.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with Bangladesh Financial Reporting Standards (BFRSs), 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 these financial statements that are free from material misstatements, whether due
to fraud and error.
Auditors’ responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with Bangladesh Standards on Auditing (BSAs). Those standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors’ judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair
presentation of the financial statements 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 appropriateness
of accounting policies used and the reasonableness of accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion the financial statements present fairly, in all material respects, the financial position of IFIC
Bank Securities Limited as at 31 December 2017, and its profit or loss and other comprehensive income and
its cash flows for the period in accordance with Bangladesh Financial Reporting Standards (BFRSs)
We also report that:
(a) We have obtained all the information and explanations which, to the best of our knowledge and belief,
were necessary for the purpose our audit and made due verification thereof;
(b) In our opinion, proper books of accounts as required by law have been kept by the company so far as it
appeared from our examination of those books;
(c) The company’s statement of financial position and statement of comprehensive income dealt with by the
report are in agreement with the books of account;
(d) The expenditure was incurred for the purpose of the company’s business.

Dated: 10 April 2018 M J Abedin & Co.
Place, Dhaka Chartered Accountants
An independent member firm of
MOORE STEPHENSDIRECTORS’
231
INTERNATIONAL LIMITED REPORT Annual Report 2017
Annexure-L
Statement of Financial Position
Amount in BDT
ASSETS
Non-current assets
Property, plant and equipments 4 4,856,741 5,153,949
Intangible assets 5 198,907 284,155
Investments membership value 6 74,989,000 74,989,000
80,044,648 80,427,104
Current assets
Margin loan to clients 7 4,031,904,359 4,140,646,772
Accounts receivable (DSE) 9,627,607 24,566,193
Dividend receivable 371,412 187,500
Advance, deposits and prepayments 8 207,745,781 165,200,697
Investment 9 11,493,525 106,053,559
Cash & cash equivalents 10 95,249,600 86,726,681
4,356,392,284 4,523,381,402
Total assets 4,436,436,932 4,603,808,506
EQUITY AND LIABILITIES:

Shareholder’s equity
Share capital 11.1 2,200,000,000 2,200,000,000
Retained earnings 12 245,389,855 205,642,127
2,445,389,855 2,405,642,127
Non-current liabilities
Deferred tax liabilities 13 120,768 203,573
120,768 203,573
Current liabilities
Provision for income tax 14 209,963,516 152,752,542
Clients payable 15 38,256,850 64,103,713
DSE payable 21,669 1,160,244
General provision 16 231,181,189 131,181,189
Bank loan 17 - 334,565,573
Other liabilities 18 1,511,503,085 1,514,199,544
1,990,926,309 2,197,962,806
The annexed notes from an integral part of these financial statements.
Chief Executive Officer Director Director

(Current Charge)
Dated: Dhaka M. J. Abedin & Co.

10 April 2018 Chartered Accountants
Statement of Profit or Loss and Other Comprehensive Income
Amount in BDT
Income:
Operating income 19 192,681,849 237,156,929
Non-operating income 20 51,629,867 10,744,235
244,311,716 247,901,164
Expenses:
Operating expenses 21 8,978,514 6,503,575
Office & administrative expenses 22 25,385,311 27,700,911
Financial expenses 23 13,071,995 157,421,514
47,435,820 191,626,000
Profit/(loss) before provisions and tax 196,875,896 56,275,164
Less: Provision 24 100,000,000 35,550,220
Profit after provision 96,875,896 20,724,944

Less: Tax
Deferred tax 13 (82,805) 286,657
Current tax 14 57,210,974 17,569,284
57,128,169 17,855,941
Net profit after tax 39,747,728 2,869,003

(Current Charge)

233
Statement of Cash Flows
Amount in BDT
Particulars 2017 2016
A) Cash flows from operating activities

Brokerage commission receipts 72,335,013 52,220,552
Interest on margin loan receipts 120,346,836 184,936,377
Interest payments (13,071,995) (157,421,514)
Dividend receipts 7,539,359 7,426,020
Payments to employees (14,598,942) (14,922,613)
Payments to suppliers (9,033,077) (13,694,846)
Income taxes paid (44,340,201) (28,514,758)
Receipts from other operating activities 43,906,595 3,294,439
Payments for other operating activities (8,978,514) (6,727,071)
Cash generated from operating activities before changes
in operating assets and liabilities 154,105,074 26,596,586
Increase / (decrease) in operating assets and liabilities
Margin loan to clients 108,742,371 (445,892,333)
Other assets 16,733,750 17,282,942
Other liabilities (30,295,125) 428,069,680
95,180,996 (539,711)
Net cash flows/ (used in) from operating activities 249,286,070 26,056,875
B) Cash flows from investing activities

Investment in shares 94,560,034 (91,720,809)
Purchase of fixed assets (757,612) (615,636)
Purchase of Intangible assets - -
Net cash flows/ (used in) from investing activities 93,802,422 (92,336,445)
C) Cash flows from financing activities

Net draw down/(payment) of short term loan (334,565,573) (1,253,458,562)
Issue of Share - 1,400,000,000
Net Cash flows/ (used in) from financing activities (334,565,573) 146,541,438
D) Net increase in cash and cash equivalents (A+B+C) 8,522,919 80,261,868
E) Effects of exchange rate changes on cash and cash equivalents - -
F) Cash and cash equivalents at beginning of the year 86,726,681 6,464,813
G) Cash and cash equivalents at end of the year (D+E+F) 95,249,600 86,726,681
Cash and cash equivalents
Cash in hand 7,105 238,310
Cash at bank 95,242,495 86,488,371
95,249,600 86,726,681
Net operating cash flow per share 1.13 0.12

(Current Charge)

Statement of Change in Equity
Amount in BDT
Particulars Share Capital Retained Earnings Total
Opening Balance as on 01.01.2017 2,200,000,000 205,642,127 2,405,642,127
Profit/(Loss) during the year - 39,747,728 39,747,728
Balance as on December 31, 2017 2,200,000,000 245,389,855 2,445,389,855
Statement of Change in Equity

Amount in BDT
Particulars Share Capital Retained Earnings Total
Opening Balance as on 01.01.2016 800,000,000 202,773,124 1,002,773,124

Issued 140,000,000 shares of Tk. 10 each 1,400,000,000 - 1,400,000,000
Profit/(Loss) during the year - 2,869,003 2,869,003
Balance as on December 31, 2016 2,200,000,000 205,642,127 2,405,642,127

(Current Charge)

235
As at and for the year ended 31 December 2017
Significant Accounting Policies and other Material Information
1. Status of the reporting entity

1.1 Corporate history
IFIC Securities Limited was incorporated in Bangladesh and registered with Joint Stock Companies
and Firms vide its registration number C-87904/10 on November 02, 2010 as a public limited company
with an Authorized Capital of Tk. 3,000,000,000 divided into 300,000,000 ordinary shares of Tk.10
each. The registered office of the company is located at IFIC Tower, 61 Purana Paltan C/A, Dhaka.
1.2 Nature of business
The principal objectives of the company for which it was established are to carry on the business of
stock brokers, dealers in relation to shares and securities dealing and other services as mentioned in
the Memorandum and Articles of Association of the Company.
2 Basis of preparation
2.1 Statement of compliance
The financial statements of IFIC Securities Limited have been prepared in accordance with the
Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS),
Companies Act 1994 and other applicable laws in Bangladesh.
2.2 Measurement bases used in preparing the financial statements
The elements of financial statements have been mostly measured on “Historical Cost” basis except
the followings:
(i) Margin Loan to Client Amortized Cost

(ii) Investment in Secondary Market Lower of cost and fair value
2.3 Use of estimates and judgments

The preparation of financial statements requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from estimates.
2.4 Accounting convention and basis
These Financial Statements have been prepared under the Historical Cost Convention and Going
Concern basis in accordance with applicable International Accounting Standards in Bangladesh
which does not vary from the requirements of the Companies Act 1994, and other laws and rules
applicable in Bangladesh.
2.5 Functional and presentational currency and level of precision
The financial statements are prepared and presented in Bangladesh Currency (Taka), which is the
company’s functional currency. All financial information presented has been rounded off to the
nearest Taka except where indicated otherwise.
2.6 Reporting period
The financial period of the company covers from 1 January 2017 to 31 December 2017.
2.7 Components of the financial statements
According to the International Accounting Standard (IAS) 1 as adopted by ICAB as BAS 1: Presentation
of Financial Statements, the complete set of financial statements includes the following components:
i) Statement of Financial Position
ii) Statement of Profit or Loss and Other Comprehensive Income
iii) Statement of Changes in Equity
iv) Statement of Cash Flows
v) Notes to the Financial Statements
3 Principal accounting policies
The accounting policies set out below have been applied in preparations of these financial statements
3.1 Property, plant and equipment
3.1.1 Recognition and measurement
Items of Property, Plant and Equipment (PPE) are initially measured at cost. After initial recognition,
an item of PPE is carried at cost less accumulated depreciation and impairment losses in compliance
with the requirements of BAS-16: Property, Plant and Equipment.
3.1.2 Disposal of fixed assets
On disposal of fixed assets, the cost and accumulated depreciation are eliminated and gain or loss
on such disposal is reflected in the Statement of Comprehensive Income, which is determined with
reference to the net book value of the assets and net sales proceeds.
3.1.3 Depreciation on fixed assets
Depreciation is recognized in the Comprehensive Income on a written down value basis over the
estimated useful life of each property, plant and equipment in accordance with the provisions of BAS
16: Property, Plant and Equipment.
Rate of depreciation on Property, Plant and Equipment considering the useful life of assets are as
follows:
Sl no Particulars of assets Rate

1 Furniture & Fixture 10.00%
2 Electric Goods 20.00%
3 Computer & Equipments 30.00%
4 Office Renovation 20.00%
5 Other Assets 40.00%
3.2 Accounts receivables

Accounts Receivables are consider good and realizable. No provision or allowance to be made during
the year.
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 PPE or inventory etc. Deposits
are measured at payment value. Prepayments are initially measured at cost. After initial recognition
prepayments are carried at cost less charges to profit and loss account.
3.4 Cash and cash equivalents
Cash and Cash equivalents include cash in hand and with banks on current and deposit accounts
which are held and available for use by the company without any restriction. There is insignificant risk
of change in value of the same.
3.5 Other current assets
Other current assets have a value on realization in the ordinary course of the company’s business
which is at least equal to the amount at which they are stated in the balance sheet.
3.6 Other corporate debt, accounts payable, trade and other liabilities
Liabilities are carried at the anticipated settlement amount in respect of goods and services received,
whether or not billed by the supplier.
3.7 Income tax
The company has to pay income tax on its total turnover as tax deducted at source and provision has
been made accordingly as per Income Tax Ordinance 1984 under section 53BBB.
3.8 Provisions
Provision is recognized on the balance sheet date if, as a result of past events, the company has a
presents legal or constructive obligation that can be estimated reliably and it is probable that an
outflow of economic benefits will be required to settle the obligation.
3.9 Revenue recognition
Commission, interest, dividend etc. have been recognised as per BAS 18: Revenue.
3.10 Cash flow statement
Cash Flow Statement is prepared in accordance with BAS 7: Statement of Cash Flows.
237
3.11 Risk and uncertainties for the use of estimates in preparing financial statements
Preparation of Financial Statements in conformity with the Bangladesh Accounting Standards
requires management to make estimates and assumption that affect the reported amounts of
assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial
statement and revenues and expenses during the period reported. Actual result could differ from
those estimates. Estimates are used for accounting of certain items such as depreciation and
amortization, taxes, reserves and contingencies.
3.12 Comparative amounts
Certain comparative amounts have been re-classified & rearranged to confirm with the current
year’s presentation.
Amount in BDT
4 Property, plant & equipment

Furniture and fixture 2,071,005 2,260,606
Electric goods 965,975 886,956
Computer and equipments 682,459 793,468
Office renovation 1,121,938 1,187,308
Other assets 15,365 25,611
4,856,741 5,153,949
For details of fixed assets are shown in “Annexure-A-1”.
5 Intangible asset 198,907 284,155
For details of fixed assets are shown in “Annexure-A-2”.
6 Investments membership value

Membership with DSE * 74,989,000 74,989,000
74,989,000 74,989,000
* This represents our original Investment cost for DSE membership in exchange of which shares at a face value
of Tk. 10 each have been allotted in favour of the Company in October 2013 for DSE. As per the provision of
the Exchange Demutualization Act-2013 and in accordance with the Bangladesh Securities and Exchange
Commission (BSEC) approved Demutualization Scheme, Dhaka Stock Exchange Ltd. (DSE) allotted total 72,15,106
ordinary Shares at face value of Tk. 10 each against the membership of DSE. Out of the above DSE transferred
2,886,042 shares directly to the credit of the Beneficiary Owner’s account of the Company. The rest shares were
credited to blocked accounts as per provisions of the Exchange Demutualization Act. 2013. As there is no active
market for shares DSE, we have shown the value at original cost of our Investment.
7 Margin loan to clients

Opening Balance 4,140,646,772 3,694,754,939
Add: Interest charge during the year 120,346,835 579,461,053
Add: Margin loan provided during the year 364,075,172 408,496,272
Less: Margin loan adjusted during the year (593,164,420) (542,065,492)
4,031,904,359 4,140,646,772
8 Advance deposit and prepayments

Advance income tax 206,833,962 162,493,714
Advance for nikunjo 850,000 850,000
Advance bank guarantee commission 58,369 1,856,983
Advance for land phone 3,450 -
207,745,781 165,200,697
9 Investment
Nahee Aluminum Composite Panel Ltd. 57,060 -
Bashundhara Paper Mills Ltd. 691,680 -
Bangladesh Export Import Co. Ltd. 10,744,785 92,628,949
Titas Gas Transmission & Dist. Co. Ltd - 7,410,660
Northern General Insurance Company Ltd. - 3,706,950
Eastland Insurance Co. Ltd. - 2,307,000
11,493,525 106,053,559
Details of investment in shares are shown in “Annexure-B-1”.
10 Cash and cash equivalents

Cash in hand 7,105 238,310
Cash at bank
IFIC Bank Limited Motijheel Br. A/C-365185-001 92,784,545 69,117,860
IFIC Bank Limited Motijheel Br. A/C-354511-001 2,351,914 13,996,478
IFIC Bank Limited Motijheel Br. SND 106,035 3,374,032
Dhaka Bank Limited Foreign Ex. Br. A/C-2031.10.11050 1 1
95,242,495 86,488,371
95,249,600 86,726,681
11 Share capital
Authorized capital
30,00,00,000 ordinary shares of Tk 10 each 3,000,000,000 3,000,000,000
11.1 Issued, subscribed & paid-up capital

220,000,000 ordinary share of Tk 10 each 2,200,000,000 2,200,000,000
11.2 Shareholding position

Face
No. of shares Amount in BDT
Shareholder value
Y 2017 Y 2016 Y 2017 Y 2016
IFIC Bank Limited 219,999,400 219,999,400 10 2,199,994,000 2,199,994,000
Mr. M Shah Alam Sarwar 100 100 10 1,000 1,000
Mr. S. M. Abdul Hamid - 100 10 - 1,000
Mr. Md. Nurul Hasnat 100 - 10 1,000 -
Mr. M. M. Haikal Hashmi 100 100 10 1,000 1,000
Mr. Shah Md. Moinuddin 100 100 10 1,000 1,000
Mr. Fariduddin Al Mahmud - 100 10 - 1,000
Mr. Syed Mansur Mustafa 100 - 10 1,000 -
Mr. Ashim Chowdhury 100 100 10 1,000 1,000
220,000,000 220,000,000 2,200,000,000 2,200,000,000
12 Retained earnings
Opening balance 205,642,127 202,773,124
Add: Profit during the year 39,747,728 2,869,003
245,389,855 205,642,127
239
13 Deferred tax
Deferred tax on tangible assets
Tax written down value 4,710,602 4,856,467
Accounting written down value 5,055,652 5,438,104
Temporary difference on written down value 345,050 581,637
Closing deferred tax (assets)/liabilities 120,768 203,573

Opening deferred tax (assets)/liabilities 203,573 (83,084)
Deferred tax (income)/expenses (82,805) 286,657
14 Provision for income tax

Opening balance 152,752,542 135,183,258
Add: Provision for the year 57,210,974 17,569,284
209,963,516 152,752,542
15 Clients payable
IFIC Bank Limited 660 6,269,312
Others client 38,256,190 57,834,401
38,256,850 64,103,713
16 General provision
Investment 6,884,350 6,884,350
Margin 16.1 224,296,839 124,296,839
231,181,189 131,181,189
16.1 Margin loan

Opening balance 124,296,839 88,746,619
224,296,839 124,296,839
17 Bank loan
Dhaka Bank Limited, foreign ex. branch - 147,688,406
Prime Bank Limited, SBC tower branch - 186,877,167
- 334,565,573
18 Other liabilities
Sundry payable 18.1 106,182 179,604
Liabilities for expenses 18.2 1,883,689 1,270,461
Unrealized interest income 18.3 1,509,512,218 1,509,512,218
IPO application - 815,000
Client dividend 996 2,422,261
1,511,503,085 1,514,199,544
18.1 Sundry payable

VAT payables 58,672 87,773
Tax payable 47,510 91,831
106,182 179,604
18.2 Liabilities for expenses

Mobile/ telephone allowance 2,874 2,875
Electricity 44,318 95,850
CDBL 303,957 268,074
Audit & professional fees 225,000 215,000
Printing & stationery 19,500 19,500
Insurance 8,846 8,846
Incentive bonus 1,279,194 660,316
1,883,689 1,270,461
18.3 Unrealized interest income

Opening balance 1,509,512,218 1,114,987,042
Add: During the year - 394,525,176
1,509,512,218 1,509,512,218
Amount in BDT
Note 2017 2016
19 Operating income
Brokerage commission 72,335,013 52,220,552
Interest on margin loan 120,346,836 184,936,377
192,681,849 237,156,929
20 Non-operating income:
Documentation charge 9,000 -
Account opening fee 34,000 32,500
Miscellaneous 19.01 1,646,661 1,536,449
IPO income 10,330 14,530
Interest on bank deposit 55,003 28,370
Dividend income 7,731,286 7,449,796
Capital gain (realized) 42,143,587 1,682,590
51,629,867 10,744,235
21 Operating expenses
Laga 5,028,514 3,453,575
CDBL 3,950,000 3,050,000
8,978,514 6,503,575
22 Office & administrative expenses

Salary and allowances 22.1 14,598,941 14,922,613
Director’s remuneration 149,500 143,750
Entertainment 403,299 293,908
Conveyance 96,862 43,939
Printing stationery 223,037 177,338
DSE subscription 39,505 41,177
Office rent 5,590,920 8,156,030
Electricity 648,552 198,440
Regulatory 177,228 553,229
Repair and maintenance 251,807 102,771
Audit fee 338,000 275,000
Legal and professional fee 615,004 465,393
241
Note 2017 2016
IPO bidding 13,000 -

WASA 52,000 33,000
Newspaper 10,672 12,890
Cleaner’s bill 47,825 26,800
Water - 44,395
Software maintenance 225,525 219,450
Connectivity 444,820 509,650
Depreciation 1,054,817 1,126,876
Amortization 85,247 121,781
Telephone bill 51,195 -
Cookeries 11,710 3,360
Security guard 202,860 202,860
Gas & fuel 3,600 2,000
Water bill 28,080 -
Postage & courier 7,885 2,566
Beautification exp. - 13,500
Washing expenses 13,420 8,195
25,385,311 27,700,911
22.1 Salary and allowances

Salary & benefit 10,280,476 11,542,044
Car maintenance 250,008 294,452
Fuel allowance 279,834 421,040
Utility 121,500 294,000
Office attendant allowance 7,008 9,670
Car insurance 16,402 16,389
Bonus 1,204,940 1,172,018
Leave fare assistance 789,929 886,800
Incentive bonus 1,279,194 -
Other salary benefit 168,000
Casual worker wages 110,850 109,800
Telephone and mobile bill 90,800 176,400
14,598,941 14,922,613
23 Financial expenses
Bank charges 196,057 104,087
Bank guarantee charge 2,498,614 2,588,400
Interest on bank loan 10,377,324 154,729,027
13,071,995 157,421,514
24 Provisions
Provision for investment - -
Provision for margin loan to clients 100,000,000 35,550,220
100,000,000 35,550,220
25 Contingent liabilities
Bank guarantee for DSE member margin 100,000,000 100,000,000
100,000,000 100,000,000
Annexure-A -1
Schedule of Fixed Assets
Amount in BDT
Cost Depreciation
Addition Written Down

Particulars Opening Closing Rates Opening Charged during Closing
during the Value
balance Balances Balance the year Balance
year
Furniture and fixture 4,245,462 40,511 4,285,973 10% 1,984,856 230,112 2,214,968 2,071,005
Electric equipment 3,142,031 320,513 3,462,544 20% 2,255,075 241,494 2,496,569 965,975
Computer and equipments 4,202,386 181,474 4,383,860 30% 3,408,919 292,482 3,701,401 682,459
Office renovation 2,608,695 215,114 2,823,809 20% 1,421,387 280,484 1,701,871 1,121,938
Other assets 336,183 - 336,183 40% 310,572 10,246 320,818 15,365
Total 14,534,757 757,612 15,292,369 9,380,809 1,054,819 10,435,628 4,856,741
Annexure-A -2
Schedule of Intangible Assets
Amount in BDT
Cost Amortization
Addition Written Down

Particulars Opening Closing Rates Opening Charged during Closing
during the Value
balance Balances Balance the year Balance
year
Windows license 108,090 - 108,090 30% 80,969 8,136 89,105 18,985
Sign up DSE 87,000 - 87,000 30% 71,721 4,584 76,305 10,695
Software development 698,600 - 698,600 30% 464,748 70,156 534,904 163,696
Escan entry virus 45,000 - 45,000 30% 37,097 2,373 39,470 5,531
Total 938,690 - 938,690 654,535 85,249 739,783 198,907

243
Annexure: B-1
244
Statement of Investment in Shares
Amount in BDT
Opening Balance Buy during the year Sale during the year Closing Balance Market
SL. units Market
Name of the company Bonus Provision
No. No. of Unit No. of Unit No. of Unit No. of Unit cost on value
Total cost Total cost Total cost Total cost
shares cost shares cost shares cost shares cost 28.12.2017
1 Titas Gas Transmission & Dist. Co. Ltd 93,750 79.05 7,410,660 - - - - 93,750 79.05 7,410,660 - - - - - -
2 Northern General Insurance Co. Ltd. 91,069 40.70 3,706,950 9,106 - - - 100,175 37.00 3,706,950 - - - - - -
3 Bangladesh Export Import Co. Ltd. 4,310,338 21.49 92,628,949 25,000 - - - 3,810,338 21.49 81,884,163 525,000 20.47 10,744,785 27.00 14,175,000 3,430,215
4 Eastland Insurance Co. Ltd. 51,909 44.44 2,307,000 2,595 54,504 42.33 2,307,000 - - - - - -
5 Pacific Denims Ltd. - - - - 10,243 10.00 102,430 10,243 10.00 102,430 - - - - -
Annual Report 2017 THE SUBSIDIARIES

6 Shepherd Industries Ltd. - - - 14,136 10.00 141,360 14,136 10.00 141,360 - - - - -
7 The ACME Laboratories Ltd. - - - 5,000 114.00 570,000 5,000 114.00 570,000 - - - -
8 Nahee Aluminum Composite Panel Ltd. - - - 1,141 11,412 10.00 114,120 5,706 10.00 57,060 6,847 8.33 57,060 73.40 502,570 445,510
9 Bashundhara Paper Mills Ltd. - - - - 8,646 80.00 691,680 - - 8,646 80.00 691,680 80.00 691,680 -
10 BBS Cables Limited - - - 692 18,470 10.00 184,700 19,162 9.64 184,700 - - - - - -
Total 4,547,066 106,053,559 38,534 67,907 1,804,290 4,113,014 96,364,323 540,493 11,493,525 15,369,250 3,875,725
Annexure: C-1
Required provision for Margin Loan to Client
Amount in BDT
Asset Value Margin Loan Negative Equity Suspense amount Base for provision Required provision Opening Balance Provision Made
1,414,704,692 3,172,130,557 1,757,425,865 1,509,512,218 247,913,648 123,616,809 124,296,839 100,000,000

Annexure: D-1
Statement on Related Party Disclosure
Amount in BDT
Particulars 31 December 2017 31 December 2016
A. Loan from IFIC Bank
Opening balance - 1,295,383,172
Debit:
Loan repayment - 1,401,641,898
Credit:
New loan during the year - 69,500,000
Interest charge during the year - 36,758,665
Other charges & duties - 60
Closing balance - -
B. Capital investment from IFIC Bank

Opening balance 2,199,994,000 799,994,000
Credit:
New share issue made during the year - 1,400,000,000
Closing balance 2,199,994,000 2,199,994,000
C. Current & SND Account

Opening balance 86,488,370 6,434,716
Debit:
Deposit made during the year 3,964,464,542 3,266,366,212
Interest received 55,003 28,370
Credit:
Deposit withdrawn during the period 3,954,911,733 3,186,202,162
Charges & duty deducted 853,688 138,766
Closing balance 95,242,494 86,488,370
D. BO Account Balance of IFIC Bank

Opening balance 6,269,312 1,438,193
Debit:
Paid to IFIC Bank 1,653,403,000 467,600,000
Credit:
Share sale proceed 1,647,134,348 472,431,119
Closing balance 660 6,269,312
245
IFIC MONEY TRANSFER (UK) LIMITED
Report of the Directors
for the Year Ended 31 December 2017
The directors present their report with the financial statements of the company for the year ended 31
December 2017.
PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of money service business including
international money transfers.
DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2017 to the date
of this report.
Jalal Ahmed
Mohammad Shah Alam Sarwar
Anwaruzzaman Chowdhury
Monirul Islam
AKM Nazmus Sakib
Ms Quamrun Naher Ahmed
STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in
accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law
the directors have elected to prepare the financial statements in accordance with United Kingdom Generally
Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company
law the directors must not approve the financial statements unless they are satisfied that they give a true
and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In
preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain
the company’s transactions and disclose with reasonable accuracy at any time the financial position of the
company and enable them to ensure that the financial statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps
for the prevention and detection of fraud and other irregularities.
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the
Companies Act 2006) of which the company’s auditors are unaware, and each director has taken all the steps
that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit
information and to establish that the company’s auditors are aware of that information.
AUDITORS
The auditors, Ahmed & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006
relating to small companies.
ON BEHALF OF THE BOARD:
Jalal Ahmed - Chairman

10 May 2018
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
Opinion
We have audited the financial statements of IFIC MONEY TRANSFER (UK) LIMITED (the ‘company’) for the year
ended 31 December 2017 on pages five to nine. The financial reporting framework that has been applied in
their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting
Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom
Generally Accepted Accounting Practice).
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members
those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company
and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
In our opinion the financial statements:
- give a true and fair view of the state of the company’s affairs as at 31 December 2017 and of its loss for the
year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
and
- have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable
law. 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 ethical requirements that are relevant to our audit of the financial statements in the UK, including the
FRC’s Ethical Standard, and the provisions available for small entities , in the circumstances set out in note nine
to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to
report to you where:
- the directors’ use of the going concern basis of accounting in the preparation of the financial statements is
not appropriate; or
- the directors have not disclosed in the financial statements any identified material uncertainties that may
cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting
for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information
The directors are responsible for the other information. The other information comprises the information in the
Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.
Our opinion on the 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 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. If, based on the work we
have performed, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Report of the Directors for the financial year for which the financial statements
are prepared is consistent with the financial statements; and
- the Report of the Directors has been prepared in accordance with applicable legal requirements.
247
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course
of the audit, we have not identified material misstatements in the Report of the Directors.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to
report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received
from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the directors were not entitled to prepare the financial statements in accordance with the small companies
regime and take advantage of the small companies’ exemption from the requirement to prepare a Strategic
Report or in preparing the Report of the Directors.
Responsibilities of directors
As explained more fully in the Statement of Directors’ Responsibilities set out on page two, the directors are
responsible for the preparation of the financial statements and for being satisfied that they give a true and fair
view, and for such internal control as the directors determine 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, the directors are 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 the directors either intend to liquidate the company or to cease operations,
or have no realistic alternative but to do so.
Our 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 a Report of the Auditors 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 (UK) 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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial
Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our
Report of the Auditors.
Tofail Ahmed (Senior Statutory Auditor)

for and on behalf of Ahmed & Co
Ferrari House (2nd Floor)
102 College Road
Harrow
Middlesex
HA1 1ES
10 May 2018
Annexure-M
Income Statement

Particulars Note
GBP BDT GBP BDT
Turnover 213,668 22,338,849 257,758 27,186,690
Administrative expenses 272,090 28,446,830 325,898 34,373,668

Operating Loss and Loss Before Taxation 4 (58,422) (6,107,982) (68,140) (7,186,978)
Tax on (loss)/profit - - - -
Loss for the financial year (58,422) (6,107,982) (68,140) (7,186,978)

Balance Sheet
31 December 2017

Particulars Note
GBP BDT GBP BDT
Fixed Assets
Intangible assets 5 13,500 1,495,708 - -
Tangible assets 6 39,738 4,402,700 56,275 5,414,854
53,238 5,898,408 56,275 5,414,854
Current Assets
Debtors 7 5,750 637,061 5,750 553,272
Cash in hand 79,191 8,773,824 124,992 12,026,893
84,941 9,410,885 130,742 12,580,165
Creditors
Amounts falling due within one year 8 78,141 8,657,491 68,557 6,596,644
Net Current Assets 6,800 753,394 62,185 5,983,522
Total Assets Less Current Liabilities 60,038 6,651,802 118,460 11,398,375
Capital And Reserves

Called up share capital 300,000 33,237,960 300,000 28,866,390
Translation reserve 1,747,560 4,757,721
Retained earnings (239,962) (28,333,718) (181,540) (22,225,736)
Shareholders’ Funds 60,038 6,651,802 118,460 11,398,375
The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006
relating to small companies.
The financial statements were approved by the Board of Directors on 10 May 2018 and were signed on its behalf by:
Jalal Ahmed
Chairman
249
1 Statutory Information
FIC MONEY TRANSFER (UK) LIMITED is a private company, limited by shares, registered in England and Wales.
The company’s registered number and registered office address can be found on the Company Information page.
2 Accounting Policies
Basis of preparing the financial statements
These financial statements have been prepared in accordance with the provisions of Section 1A “Small Entities”
of Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of
Ireland” and the Companies Act 2006. The financial statements have been prepared under the historical cost
convention.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,
value added tax and other sales taxes.
Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost
less any accumulated amortisation and any accumulated impairment losses.
Computer software is being amortised evenly over its estimated useful life of five years.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - 10% on cost
Plant and machinery - 15% on cost
Computer equipment - 33% on cost
3 Employees And Directors

The average monthly number of employees during the year was 4 (2016 - 6).
4 Operating Loss
The operating loss is stated after charging:
2017 2016
Particulars
GBP BDT GBP BDT
Depreciation - owned assets 16,537 1,728,932 17,040 1,797,272
Computer software amortisation 1,500 156,824 - -
5 Intangible Fixed Assets

Computer software
Particulars
GBP BDT
Cost
At 1 January 2017 - -
Additions 15,000 1,661,898
At 31 December 2017 15,000 1,661,898
Depreciation
At 1 January 2017 - -
Charge for year 1,500 166,190
At 31 December 2017 1,500 166,190
Net Book Value

At 31 December 2017 13,500 1,495,708
6 Tangible Fixed Assets
Short leasehold Plant and machinery Computer equipment Total
GBP BDT GBP BDT GBP BDT GBP BDT
Cost
At 1 January 2017 75,006 7,217,175 60,228 5,795,216 4,051 389,792 139,285 13,402,184
Additions - - - - - -
At 31 December 2017 75,006 7,217,175 60,228 5,795,216 4,051 389,792 139,285 13,402,184
Depreciation
At 1 January 2017 36,250 3,488,022 42,709 4,109,516 4,051 389,792 83,010 7,987,330
Charge for year 7,501 831,060 9,036 1,001,127 - - 16,537 1,832,187
At 31 December 2017 43,751 4,319,082 51,745 5,110,643 4,051 389,792 99,547 9,819,517
Net Book Value

At 31 December 2017 31,255 2,898,093 8,483 684,574 - - 39,738 3,582,667
At 31 December 2016 38,756 3,729,153 17,519 1,685,701 - - 56,275 5,414,854
2017 2016
Particulars
GBP BDT GBP BDT
7 Debtors: Amounts Falling Due Within One Year

Other debtors 5,750 637,061 5,750 553,272
8 Creditors: Amounts Falling Due Within One Year

Trade creditors 66,286 7,344,038 61,335 5,901,733
Taxation and social security 3,785 419,352 1,822 175,315
Other creditors 8,070 894,101 5,400 519,595
78,141 8,657,491 68,557 6,596,644
9 APB Ethical Standard - Provisions Available for Small Entities

In common with many other businesses of our size and nature we use our auditors to prepare and submit
returns to the tax authorities and assist with the preparation of the financial statements.
10 Ultimate Controlling Party

The company is fully owned and controlled by IFIC Bank Limited, a company incorporated in Bangladesh.
251
2017 2016
Particulars
GBP BDT GBP BDT
Commission receivable 213,668 22,338,849 257,758 27,186,690
Establishment costs
Rent 58,675 6,134,433 42,000 4,429,895
Rates and water 19,979 2,088,791 18,805 1,983,433
Insurance 1,440 150,551 771 81,320
Light and heat 1,757 183,693 1,563 164,855
81,851 8,557,468 63,139 6,659,504
131,817 13,781,381 194,619 20,527,186
Administrative expenses
Wages 79,055 8,265,148 77,140 8,136,241
Social security 6,331 661,902 3,639 383,819
Telephone 1,661 173,656 1,629 171,817
Printing, postage & stationery 817 85,417 1,767 186,372
Motor and travelling 1,853 193,730 826 87,121
Subscription 35 3,659 - -
IT costs 4,805 502,360 8,994 948,630
Repairs and renewals 2,057 215,058 2,450 258,411
Cleaning 816 85,312 517 54,530
Sundry expenses 1,831 191,430 1,369 144,393
Legal fees 4,250 444,335 190 20,040
Compliance costs 9,020 943,035 18,487 1,949,892
Other professional fees - - 8,800 928,169
Auditors’ remuneration 2,400 250,918 3,600 379,705
Auditors’ remuneration for non audit work 4,800 501,837 4,800 506,274
119,731 12,517,797 134,208 14,155,414
12,086 1,263,583 60,411 6,371,772
Selling and marketing costs
Advertising 110 11,500 9,734 1,026,681
Promotions and exhibitions 510 53,320 2,611 275,392
620 64,821 12,345 1,302,073
11,466 1,198,763 48,066 5,069,699
Finance costs
Bank charges 50,575 5,287,583 96,655 10,194,560
Credit card 1,276 133,405 2,511 264,844
51,851 5,420,988 99,166 10,459,405
(40,385) (4,222,225) (51,100) (5,389,706)
Depreciation
Computer software 1,500 156,824 - -
Short leasehold 7,501 784,225 7,500 791,053
Plant and machinery 9,036 944,708 8,998 949,052
Computer equipment - - 542 57,167
18,037 1,885,756 17,040 1,797,272
Net (Loss)/Profit (58,422) (6,107,982) (68,140) (7,186,978)
This page does not form part of the statutory financial statements
IMPORTANT
EVENTS
IFIC Bank celebrated its 41st anniversary on 08 October 2017.
IFIC Bank organized an Art

Festival for the Children of
its employees.
DIRECTORS’
253
IFIC Bank organized a
condolence meeting
for the sad demise of
Mr. A.K.M. Mozharul
Haque, former
Company Secretary of
the bank.
IFIC Bank organized

the branch managers’
conference titled
“Leaders Meeting
2017” at IFIC Tower on
01 August 2017.
IFIC Bank organized a

programme at IFIC
Tower to celebrate the
International Women’s
Day.
IFIC Bank organized

the Hemanta Sandhya
for its officials at IFIC
Tower.
DIRECTORS’
IFIC Bank organized a Pitha Utsab for its corporate clients and well-wishers at Gulshan Branch premises.
Among others, Late Mayor of Dhaka North City Corporation Mr. Annisul Haque attended the programme.
IFIC Bank organized a programme for welcoming the parents of newly-born children.
DIRECTORS’
255
IFIC Bank relocated its
Malibagh Branch at 1,
Malibagh Chowdhury
Para, D.I.T. Road, Ward
No. 23, Dhaka on
05 November 2017.

Basundhara Branch at
House- 160, Road - 08,
Block - F, Bashundhara
Residential Area,
Dhaka on
10 December 2017.

Gulshan-Tejgaon Link
Road Branch at
"Impetus Center",
Plot No. 242/B Gulshan
Tejgaon Link Road
Tejgaon, Dhaka on 14
December 2017.
IFIC Bank Limited rewarded the children of its officials for their outstanding achievements in S.S.C. or ‘O’
Level and H.S.C. or ‘A’ Level examinations. Managing Director & CEO of IFIC Bank Mr. Shah Alam Sarwar
handed over cash rewards and certificates to them.
DIRECTORS’
BRANCH
NETWORK
DIRECTORS’
257
Branch Network of IFIC Bank Limited
Sl.
Name of Branch Address Telephone Number
No.
DHAKA DIVISION
1 Principal Branch IFIC TOWER, Level-2 Tel: 9557037
61, Purana Paltan, Dhaka Mobile: 01787668283, 01678010050
2 Federation Branch FBCCI Building Tel: 9561141-3, 9552176, 9586485, 9552175,
60, Motijheel C/A. Dhaka-1000 9586484
Mobile: 01713080218, 01678010051
Fax: 880-2-9567488
3 Moulvibazar Branch 6/1, Mokim Katra Road, Tel: 7316891, 7316097,7316421
Lalbagh, Dhaka Fax: 7315934
Mobile: 01713038736, 01678010052
4 Dhanmondi Branch Royal Plaza (Ground & 1st floor), Tel: 8628381, 8628379, 9660320, 9660336
House # 8A, Road # 4, Mirpur Road, Mobile: 01713229815, 01678010053
Dhanmondi, Dhaka-1205 Fax: 880-2-9615861
5 Shantinagar Branch 24 Shantinagar Tel: 8317839, 8318728, 9356094
Chamelibag, Dhaka Mobile: 01713-229827, 01678010054
Fax: 9353759
6 Gulshan Branch Holding No.109, Gulshan Avenue, Tel: 8814912, 9884045, 8828187, 9896056
Ward No.19 Mobile: 01713-041420, 01678010056
P.S.-Gulshan Dhaka-1212 Fax: 880-2-8826682
7 Islampur Branch Paradise Complex, 104 Tel: 57391607, 57391369
Islampur Road, Dhaka Fax: 57391240
Mobile: 01713-229829, 01678010057
8 Bangshal Branch 29/1, Nazira Bazar Lane Tel: 9563679, 9566407, 7118521
North South Road, Dhaka Mobile: 01713229830, 01678010058
Fax: 9580438
9 Elephant Road Branch 73/1, Elephant Road PABX: 9676151-2, 9672119
(1st & 2nd Floor), Dhaka Mobile: 01711-431981, 01678010059
Fax: 8613361
10 Naya Paltan Branch Orchard Faruque Tower Tel: 58312762, 58313716, 9348603
72, Naya Paltan (2nd Floor), Dhaka 9334684, 9334669
Mobile: 01713229831, 01678010060
Fax: 8317263
11 Kawran Bazar Branch 3, Kawran Bazar Tel: 8189991, 8189992, 8189745
Petro Centre Building, Dhaka Mobile: 01713229832, 01678010061
Fax: 8189990
12 Malibagh Branch 1, Malibagh Chowdhurypara, DIT Tel: 9343796, 9356431
Road, Dhaka-1219 Mobile: 01713011054, 01678010062
Fax: 9362737
13 Uttara Branch ABC Heritage (1st floor) Tel: 58957883, 58956266
02 & 04, Jasimuddin Avenue Mobile: 01755620824, 01678010063
Sector – 03, Urrata, Dhaka-1230 Fax: 8950224
14 Lalmatia Branch House # 405E, Road No.16(New), Tel: 9103830, 9128746,
27(Old), Dhanmondi R/A, Dhaka. Mobile: 01720034790, 01678010064
Fax: 8150801
15 Pallabi Branch Kashem Chamber Tel: 9016441, 8061258
(1st & 2nd floor), Plot # 11 Mobile: 01713035111, 01678010065
Main Road # 3, Section # 7 Fax: 9001276
Pallabi, Mirpur, Dhaka
16 North Brook Hall Rd. 58-60, North Brook Hall Road, Tel: 958113, 9580749
Branch Sutrapur, (1st floor) Mobile: 01713011719, 01678010067
Dhaka-1100 Fax: 9580748
17 Nawabpur Road Branch Barek Plaza Tel: 9561036, 9561094
63, Nawabpur Road Mobile: 01713064289, 01713229826,
P.S. Sutrapur, Dhaka 01678010068
Fax: 7125268
BRANCH
258 Annual Report 2017 NETWORK
Sl.
No.
18 Narayanganj Branch 66/1, Bangabandhu Road, Tel: 7645000-3, 7633206
Narayanganj Mobile: 0173229808, 01678010071
Fax: 7633485
19 Netaiganj Branch 28, R.K. Das Road Tel: 7632464, 7632943
Netaigonj, Narayanganj Fax: 7632943
Mob: 01713229834, 01678010072
20 Konabari Branch Konabari Plaza Tel: 9297133
Konabari Neelnagar Mobile: 01711-436078, 01678010074
Gazipur Sadar, Gazipur Fax: 9298727
21 Muktarpur Branch Muktarpur Tel: 7611390
P. O. Panchasar Fax: 0691-62390
Dist. Munsiganj Mobile: 01713229835, 01678010075
22 Narsingdi Branch Nayan Tara Plaza (1st floor) Tel: 9462617, 9462761
137/1, C & B Road, Mobile: 01713229836, 01678010076
Narsingdi. Sadar, Narsingdi Fax: 9462985
23 Ghorasal Branch Ghorasal Bazar, Tel : 9466301, 9466330®
P.O. Ghorasal, P.S. + Upazila. Palash Mobile: 01713229837, 01678010078
Dist. Narsingdi Fax: 9466301
24 Madhabdi Branch Mitali Building (1st Floor) Tel : 029446498,
35, Madhabdi Bazar, Mob: 01711436624, 01678010079
Dist. Narsingdi Fax: 029446498
25 Bajitpur Branch 215, Bajitpur Bazar Tel : 09423-64014
P.O. Bajitpur Mobile: 01713229839, 01678010080
Dist. Kishoreganj Fax: 09423-64329
26 Faridpur Branch Oriental Property Tel : (0631) 62101, 64051
(1st Floor) Fax: 063164051
118, Thana Road, Faridpur Mobile: 01711434947, 01678010082
27 Takerhat Branch Sufi Janab Ali Road (Lasker Market) Tel: 06623-56248
P.O. Khalia, P.S. Rajoir, Mobile: 01713-010614, 01678010083
Dist. Madaripur Fax:
28 Ashulia Branch “Rifat Square Plaza” Tel: 7788411
Jamgora, Ashulia, Dhaka Mobile: 01713423767, 01678010069
Fax: 7788412
29 Rupganj Branch “Manik Villa” Mobile: 01714166955, 01678010073
Tarabo Bazar, Rupganj, Narayanganj
30 Banani Branch “Glowing Stone” Tel: 9821757, 8836486, 8836091
House No. 54, Road No. 11 Mobile: 01730019781, 01678010070, Fax:
Block-C, Banani, Dhaka 9821756
31 Keranigonj Branch “Bikrampur Plaza” (1st floor), Shahid Tel: 7762738, 7762737
Delwar Hossain Road, East Aganagar, Mobile: 01730019788, 01678018354
Keranigonj, Dhaka Fax: 7762736
32 Shariatpur Branch 469, Tulasar Sadar Road, Shariatpur Tel: 0601-61496
Sadar, Shariatpur Mobile: 01730332032, 01678018357
Fax: 0601-61497
33 Mohakhali Branch “Siddique Tower” Tel: 9899503, 9899507,
Holding No.49, A.K. Khandaker Sarak, Mobile: 01730332033, 01678018356
Ward No.20, P.S.-Gulshan, Dhaka Fax: 9899503
34 Dania Branch “Al-Madina Shopping Complex” Tel: 7546218, 7546268
(1st floor), Gobindapur Bazar, Dania, Mobile: 01730332034, 01678018352
Jatrabari, Dhaka Fax: 7546218
35 Chandra SME/Krishi “Subarna Ibrahim General Hospital” Tel: 06822-52058, 06822-52059
Branch (Ground floor), Nayarhat Chandra Mobile: 01755620822.
Sarak, Village – Bhataria (Chandra) Fax: 06822-52058
P.S. Kaliakoir, P.O. – Boroipara,
Ward No.8, Union Parisad – Atabahar,
Dist. – Gazipur
BRANCH
259
NETWORK Annual Report 2017
Sl.
No.
36 Tongi SME/Krishi 29, Tongi Bazar Road, Tongi Tel: 9816354
Branch Gazipur Mobile: 01730332035
37 Tanbazar Branch “Amin Market” (1st floor) Tel: 7630891, 7630892
7, S.M. Maleh Road, Narayangonj Fax: 7630892
Mob: 01730003591, 01678018360
38 Stock Exchange 16, Motijheel C/A, Dhaka. Tel: 9515791-3
Branch Fax: 9515794
Mobile: 01787668294, 01678018361
39 Savar Bazar Branch Savar Bazar, Savar, Dhaka Tel: 7744809
Fax: 7744808
Mobile: 01730003599, 01678018363
40 Panchaboti Branch “Gafur Super Complex” Tel: 7670032, 7670033
Panchaboti, Hariharpara, Fax: 7670032
Enayetnagar, Fatullah, Narayangonj. Mobile: 01730330896, 01678018362
41 Progoti Sarani Branch 2nd Level of AJ Height’s Building, Cha- Tel: 8835408, 8822742
72/1/D, Progoti Sarani, Uttar Badda, Fax: 8822743
Dhaka-1212. Mobile: 01755629823, 01678018364
42 Nawabgonj SME/Krishi Nawabgonj Adhunik Banijjik Biponi Tel: 7765230
Branch (1st floor) Fax: 7765229
Union Parisad – Kolakopa, P.S./Upa- Mobile: 01730338570
zilla – Nawabgonj, Dist.- Dhaka
43 Dholaikhal Branch Al-Noor Steel Market, 25, Goalghat Tel: 9556004, 9515043
Lane, Dholaikhal New Road, Dhaka Mob: 01730318278
44 Board Bazar Branch (1st floor), Kalmeshwar, Tel: 9293274, Fax: 9293276,
Ward No.35. Upazilla – Gazipur Sadar, Mob: 01730709793,
P.S. Gazipur Sadar, Dist. – Gazipur.
45 Tangail Branch “Laso Plaza” (1st floor) Tel: 0921-51435
Khalpar Road, Tangail, P.S.- Tangail Fax: 0921-51434
Sadar, Pouroshova – Tangail, Mob: 01730709792
Municipal Holding No.59, Ward
No.13, Dist. – Tangail
46 Dhamrai SME/Krishi “Haji Monir Plaza” (1st floor) Tel: 7730935, 7730936
Branch Dhamrai Bazar, Dhamrai, P.S. & Fax: 7730935
Pouroshova – Dhamrai, Ward No. 3, Mob: 01730709797, 01678018369
Holding No.24, Dist. – Dhaka
47 Mirpur Branch “Azaz Tower” Holding No.145, Begum Tel: 8031790
Rokeya Sarani, Ward No.14, Mob: 01713109105
P.S. – Mirpur, Dist. – Dhaka 01678018355
48 Bashundhara Branch Plot No.160, Block-F, Road No.8, Tel: 8417767
Bashundhara R/A, Bhatara, Dhaka Fax : 8417766
Mob: 01755543548, 01678010046
49 Mohammadpur Branch “Ring Tower” (1st floor) (Flat Type TeL: 9104472, 9104473
B-1 North side & A-1 South side), Fax: 9104473
Mohammadpur Housing Estate, Mob: 01755543540
Block-F, Plot No.16/B, Probal
Housing, Ward No.43, Ring Road,
Dhaka-1207
50 Gulshan-Tejgaon Link “Impetus Center” 242/B, Gulshan- Tel: 9853290, 9853291, 9854464
Road Branch Tejgaon Link Road, Tejgaon, Dhaka. Fax: 9854465
Mob: 01755620821
51 Manikgonj Branch “Rudronil Plaza”, 134, Shahid Rafique Tel: 7720042
Sarak, Manikgonj. Fax: 7720032
Mob: 01755620828
52 Gabtoli Bagbari Branch 259, Bagbari, Mirpur (Gabtoli), P.O. TeL: 902736
Mirpur, Ward No.9, P.S. – Darus Fax: 902737
Salam, Dhaka Mob: 01755620829, 01730305993
BRANCH
Sl.
No.
53 Konapara Branch “F.R. Tower”, (1st floor) Konapara, Tel: 7550481, 7549737
Matuail, Demra, Dhaka, Union Mob: 01755658701
Parishad – Matuail, Ward No.6,
P.S. – Demra, Dist. – Dhaka
54 Meghola Bazar Branch “Afsar Plaza” Meghola Bazar, Union – Mob: 01766667604
Narisa, P.S.- Dohar, Dhaka.
55 Garibe Newaz Avenue Plot No.10, Garibe Newaz Avenue, 8991306,
Branch Sector No.11, Uttara, Dhaka. Mobile. 01766667609
56 Aganagar Branch “Babul Tower”, Aganagar, Tel: 7761580
South Keraniganj, Dhaka. Mobile. 01787668285, 01787668291
57 Hasnabad Branch Hasnabad Bazar, Raipura, Tel: 9444026, 9444041
Narsingdi. Mobile: 01787668281
58 Shibu Market Branch ‘Hazi Nurun Nesa Plaza’ Shibu Tel: 7647624, 7647625
Market, at Katherpul Chowrasta, Vill Mobile: 01770792013
– Kutubail, P.O. – Fatulla, P.S. – Fatulla,
Dist. – Narayanganj
59 Gazipur Chowrasta “Bagdad Tanzia Tower” Holding Tel: 9261833, 9261832
Branch No.01/1, Block-B, Ward No.16, Mob: 01770792014
Outpara, Gazipur Chowrasta, Gazipur
Sadar, Gazipur
60 Mawna Branch “Kitab Ali Plaza”, Mawna Tel: 06825-51237, 06825-51238
Chowrasta, 4 No. Telihati Union Mobile: 01770792015
Parishad, Village – Mulaid, P.O.
– Tengra, Upazila – Sreepur,
Dist. – Gazipur
61 Bandar Branch “Haji Motaleb Plaza” Holding No. 3, Mobile: 01770792017
S.S. Shah Road, Ward No. 22, P.S. –
Bandar, Dist. – Narayanganj
62 Isapura Bazar Branch Village – Yousufganj, 1 No. Mobile: 01709646951
Rupganj Union, P.O. : Pashi Bazar
P.S. : Rupganj, Dist : Narayanganj.
63 Darus Salam Road 17, Darus Salam Road, Ward No.12 Mobile: 01770792019
Branch Mirpur-1, Dhaka-1216
64 Karatia Branch 586, Karatia Bazar, 4 No. Mobile: 01709646952
Karatia Union, Ward No.1, P.O. :
Karatia, P.S & Upazila: Tangail Sadar,
Dist : Tangail
65 Panchdona Branch Panchdona Branch (Rural) Mobile: 01709646953
“Mozammel Haque Super Market”(1st
floor), Panchdona Bazar, Union –
Meherpara Union Parishad, Ward
No.9, Mouza – Burairhat, P.S. –
Narsingdi Sadar, Dist. – Narsingdi
66 Arshinagar Branch Arshinagar Branch (Rural) (1st floor) Mob: 01979022033, 01708466483
Arshinagar, Village – Modher Char,
Union – Shakta Union Parishad,
P.O. – Shamla, P.S. – Keraniganj,
Dist. – Dhaka
67 Bhuigar Branch Bhuigar Branch (Rural) Mob: 01708466484
“Maa Fatema Tower” (1st floor)
Village: Bhuigar, Union: Kutubpur,
P.O.- Bhuigar Bazar, P.S. – Fatullah,
Dist. – Narayanganj
68 Cherag Ali Branch Cherag Ali Branch (Urban) Mob: 01755590590
“Boksh Tower”, 1st & 2nd floor,
16, Cherag Ali, Nishat Nagar, Tongi,
Gazipur
BRANCH
261
Sl.
No.
69 Local Office Islam Chamber Mob: 01708123362, 01714102345
125/A, Motijheel C/A, Dhaka-1000 Tel: 9565215-8
70 Bhawal Mirzapur Bhawal Mirzapur Branch Mob: 01917454913
Branch “Mannan Plaza”, 1st floor,
Bhawal Mirzapur, Union : Mirzapur,
P.O. : Mirzapur Bazar, Upazila : Gazipur
Sadar, District : Gazipur
71 Kapasia Branch Kapasia Branch Mob: 01913458233
“Sarkar Plaza”, (1st floor),
Union : Kapasia, P.O. : Kapasia,
Upazila & P.S. : Kapasia
District : Gazipur.
72 Shafipur Branch “Jahanara Aziz Tower”, Mob: 01730710383
Vill : Shafipur, 4 No. Mouchak
Union, P.O. Shafipur, Thana-Kaliakoir,
Dist- Gazipur
MYMENSINGH DIVISION
73 Mymensingh Branch 52, Choto Bazar (1st Floor), Tel : (091) 66883, (091) 66873, Fax: 09166883
Mymensingh. Mobile No.01713019545, 01678010081
74 Seed Store Bazar ‘Mahesa Plaza’ Seed Store Bazar, Mobile: 01787668287
Branch P.O: Habirbari, P.S: Bhaluka, Dist :
Mymensing
75 Sherpur Branch “Ameen Plaza” at Holding # 18, Mobile: 01770792016
Kharampur Road, Sherpur District
Town.
76 Jamalpur Branch “Nahar Gold Plaza” Holding Mobile: 01770792018
No.1024, Medical Road, Ward No. 5,
Pourashava & P.S.- Jamalpur
Dist.- Jamalpur
CHITTAGONG DIVISION
77 Agrabad Branch 30, Agrabad C/A Tel : 031-710531, 712347, 712348, 717937
Chittagong Mob: 01713229814, 01678010085
Fax : 880-31-710078
78 Khatunganj Branch 249/250, Khatunganj Road Tel : 031-612904, 619809, 613056,632288
Chittagong. Mob: 01713229841, 01678010086
Fax : 880-31-610290
79 Laldighi Branch “Jamal Complex” (1st floor) Tel : 031-620931, 638307, 636498, Mob:
8, Laldighirpar, (East) 01713229842, 01678010087
Ward No.32 Andorkilla ward, Fax : 880-31-610078
Chittagong City Corporation,
P.S. Kotwali, Chittagong
80 Noju Miah Hat Branch “Sheikh Market”, ground floor, 5/1, Tel : 031- 670908
Burischar, Nur Ali Bari, Hathazari, Mob: 01713101231, 01678010089
Chittagong. Fax: 031-2570611
81 Hathazari Branch “Siddique Market” (1st floor) Tel : 031-2601430
Bus stand, Hathazari, Chittagong. Mobile: 01713229843, 01678010090
Fax: 031-2601193
82 Chawk Bazar Branch Shahzada Market Tel : 031-621160, 616539
68, College road Mobile: 01713229844, 01678010091
Chawk Bazar, Chittagong Fax: 031-611177
83 Shah Amanat Market 624/A, Shah Amanat Municipal Tel : 031-614244, 619516
Branch Super Market (Ground Floor), Jubilee Fax: 031-614244
Road, Reazuddin Bazar, Chittagong Mobile # 01713229845, 01678010092
84 Sheikh Mujib Road Azmal Arcade (1st floor) Tel : (031) 713981, 721972, 2510455
Branch 1806, Sk. Mujib Road Mobile: 01714031228, 01678010093
Pathantuli, Chittagong. Fax: 031-713981
BRANCH
Sl.
No.
85 Cox’s Bazar Branch 158, Main Road (1st Floor) Tel : 0341-64573, 63856
Ali Arcade, Cox’s Bazar. Mobile: 01713229846, 01678010095
Fax: 0341-64573
86 Brahmanbaria Branch Ground floor, 4. Court Road Tel : (0851) 58655, 59738
P.O. Box No. 09, Brahmanbaria Mobile: 01711439720, 01678010096
Fax: 0851-58552
87 Comilla Branch 190/193 Rajgonj, Crossing. Tel : (081) 68662, 77044
Chatipatty, Comilla Mobile: 01713229812, 01678010097
Fax: 081-71402
88 Companiganj Branch “Brothers Plaza” 15, West Nabipur Tel: 0802-659123
P.O. Companiganj, P.S. Muradnagar Mobile # 01714080176, 01678010098
Dist. Comilla. Fax: 080-2659037
89 Feni Branch 99, Islampur Road (1st Floor) Tel : (0331) 73179, 61764
Feni Mobile: 01713229847, 01678010201
Fax: 0331-73150
90 Choumuhani Branch 667/785, South Bazar, Tel : (0321) 52778, 52779
Choumuhani, Begumgonj, Noakhali Mobile: 01713107230, 01678010205
Fax: 0321-52778
91 Fatikchari Branch “T. K. Market” Bibirhat, Dhurung, Tel: 03022-56202
Fatikchari, Chittagong. Mobile No. 01713423765, 01678010094
Fax: 03022-56203
92 CDA Avenue Branch 1005/2/1872, CDA Avenue Tel: 031-2555919, 2555920
East Nasirabad, Panchlaish, FAX: 031-2555918
Chittagong Mob: 01730329087, 01678018365
93 Madam Bibir Hat Madam Bibir Hat, Bhatiary, Tel: 031-2780919, 2780920
Branch Sitakundu, Chittagong FAX: 031-2780921
Mob: 01730317373, 01678018366
94 Aulankar More Branch (1st floor) Aulankar More, Chittagong Tel: 031-2773116, ,2773115,
P.S. Pahartoli, Chittagong City Fax: 031-2773117
Corporation, Ward No.10, Chittagong. Mob: 01730709795
01755520715
95 Ashugonj Branch (1st floor), “Sheria Sayed Tower”, Vill Tel: 08528-74621
– Ashugonj Bazar, Union – Ashugonj Fax: 08528-74623
Sadar Union, Ward No. 1, Upazilla – Mob: 01730709794, 01755520716
Ashugonj, P.O. Ashugonj
P.S. Ashugonj, Dist.B.Baria
96 Chandina Branch “Aziz Plaza” (1st floor), Chandina TeL: 08022-56440,
Bazar, Village - Nabiabad, Ward No. Fax: 08022-56441
5, Pouroshava – Chandina Mob: 01755543504
P.O. – Chandina, P.S.- Chandina
Dist. – Comilla,
97 Rangamati Branch (1st & 2nd floor) Tel: 0351-63597
22/2, Bazar Fund Road, Kathaltoli, Mob: 01755630823
Rangamati. Fax: 0351-63598
98 Gouripur Bazar Branch (1st & 2nd floor) “Suruzzaman Tower” Mob: 01755658705
Gouripur Bazar, Comilla.
99 Miah Bazar Branch “Wahab Market”, 1st floor, Vill – Mob: 01766667605, 01766667596
Jogomohonpur, Union – Ujirpur,
P.O.- Miah Bazar, P.S.- Chowddagram,
Comilla.
100 Bandartila Branch “Noor Shopping Complex” Tel: 031-800024, 800025, 800026.
Holding No.564/802, Mobile:01787668286
M.A. Aziz Road, South Halishahar,
Ward No.39, P.S. CEPZ,
Dist. – Chittagong.
101 Chandraganj Branch Noor Shopping Complex,
Chandraganj, Laxmipur Sadar, Mobile: 01787668288
Laxmipur.
BRANCH
263
Sl.
No.
102 Anwara Branch Anwara Branch (Rural) Mob: 01708466482, 01966670024
“Amin Complex” (1st floor)
Village – Chatari Choumuhani Bazar,
Union – 8 No. Chatari Union Parishad,
P.O. – Bairag, P.S. – Anwara,
Dist. – Chittagong.
103 Panchlaish Branch Panchlaish Branch Mob: 01819391581
“Hill Crest” 1st Floor,
24/35, Katalgonj, Hathazari Road,
Panchlaish, Chittagong.
RAJSHAHI DIVISION
104 Rajshahi Branch 3, Shaheb Bazar, Tel : (0721) 774586, 774856, 774396,
Ghoramara, Rajshahi. Mob: 01711405660, 01678010206,
01714029471
Fax: 0721-774566
105 Naogaon Branch 263, Main Road Tel : (0741) 62769,
Thakur Mansion (1st floor) Mobile: 01713229848, 01678010208
Naogaon. Fax: 074162867
106 Pabna Branch Chamber Building Tel : (0731) 63436, 66053
Benai Patty, (Sona Patty), Pabna. Mobile: 01713200818, 01678010219
Fax: 0731-64122
107 Bogra Branch 56/64, Madhu Metro Tower, Tel : (051) 66080, 65324
Satmatha, Kazi Nazrul Islam Sarak, Mobile No.01713229850, 01678010213
Bogra. Fax: 051-66080
108 Chapai Nawabganj 21, Daudpur Madrasha Tel : (0781) 52081
Branch Road(1st Floor), Puratan Bazar, Mobile: 01713202488, 01678010214
Chapainawabganj Fax: 0781-52081
109 Baneshwar Branch Baneshwar Islamia High School Mobile: 0171-3201692, 01678010215,
Market, Baneshwar
P.S. Puthia, Dist. Rajshahi.
110 Belkuchi Branch “Bhuiyan Plaza” (1st floor) Tel: 07522-56446,
P.O. Shernagar FAX: 07522-56437
P.S. Belkuch, Sirajgonj Mob: 01730019787, 01678018359
111 Kashinathpur SME/ (1st floor), Village - Haridebpur, Tel: 07332-54411, 54422
Krishi Branch Union – Jeetshakini, Ward No. 5, Mob: 01730705100.
Upazilla – Bera, P.O. Kashinathpur, 01755520719
P.S.- Bera, Dist. – Pabna,
112 Joypurhat Branch (1st floor) Tel: 0571-51163, 51164
Joypurhat Sadar Road, Joypurhat, Fax No. 0571-51165
P.S.- Joypurhat, Pouroshova – Mob: 01730709796, 01755520714
Joypurhat, Municipal Holding
No.138/0, 138/1 & 138/2, Ward
No.08, Dist. – Joypurhat,
113 Taherpur Branch “Mridha Plaza” (1st floor) Tel: 07236-53331
Main Road, Ward No.3, Taherpur, Mob: 01766667607
Rajshahi.
RANGPUR DIVISION
114 Rangpur Branch Sarker Super Market (1st Floor) Tel : (0521) 63453, 62607
41/42, Dewan Bari Road Mobile: 01713229811, 01678010211
Betpatty, Rangpur Fax: 0521-62607
115 Dinajpur Branch 534/506, Maldahpatty, Tel : (0531) 65680, 63414
Dinajpur. Fax: 0531-51632
Mobile # 01713229849, 01678010212
116 Shetabgonj SME/Krishi (1st floor), School Road, Murshidhat, Tel: 05325-73202
Branch Shetabgonj, P.S. – Bochagonj, Fax: 05325-73203
Pouroshova – Shetabgonj, Ward Mob: 01730729872
No.3, Holding No.521, Dist. Dinajpur
BRANCH
Sl.
No.
117 Birol Bazar Branch (1st floor), Birol Bazar, Dinajpur, Tel: 05324-56212
Upazilla – Birol, Union Parishad – Fax: 05324-56213
Birol, P.O. – Birol, P.S. – Birol, Ward Mob: 01755658703
No.7, Dinajpur
KHULNA DIVISION
118 Khulna Branch Fatema Building Tel : (041) 720396-7, 812199, 732600, 732601,
81, Lower Jessore Road Fax: 720399
Khulna Mobile: 0171-3229851, 01678010216
119 Boro Bazar Branch 1, Sir Iqbal Road Tel: (041) 812099, 812100
Kalibari, Khulna. Mobile: 01713229852 01678010217
Fax: 041-812099
120 Jessore Branch 59, N.S.C. Road Tel : (0421) 68762, 68764, 68765
(Garikhana Road), Jessore Fax: 0421-68763
Mobile: 01713403300, 01678010218
121 Benapole Branch Bandar Complex, Benapole, Jessore Tel : (04228) 75001-2
Mobile: 0171-3229810, 01678010219
Fax: 04228-75002
122 Satkhira Branch Mojahar Ali Complex, Tel : (0471) 62602, 65429
Shaheed Kazal Sarani, Mobile: 01713400254, 01678010220
Kaligonj Sarak, Palashpole, Satkhira. Fax: 0471-63319
123 Noapara Branch Dhaka – Khulna Highway, 97 Noapara Tel : (04222) 71397
Bazar, Jessore. Mobile: 0171-3400537, 01678010221
124 Kushita Branch 2, Siraj-Ud-Dowla Road Tel : (071) 62550, 61895,
Abdul Hamid Market Fax: 071-61895,
N.S. Road, Kushtia. Mob: 01713400380, 01678010223
125 Kaligonj SME/Krishi Holding No.49-01, “Shahjahan Plaza” Tel: 04523-56697
Branch Madhugonj Bazar Road, Kaligonj, Fax: 04523-56698
Zhenaidah. Mob: 01730318277
126 Poradah Branch “Khan Super Market” (1st floor),
Vill – Katadah, Union – Poradah, Ward Mob: 01730709791, 01755520712
No.4, Upazilla – Mirpur, P.O. Poradah,
P.S. – Mirpur, Dist. Kushtia,
127 Bagerhat Branch Sadonar More, 56, Kazi Nazrul Islam Tel: 0468-64539, 64538
Road, Bagerhat. Mob: 01755642273
128 Sonadanga Branch “Kohinoor Tower”, A-12, KDA Mazid Tel: 041-731327,723181
Sarani, Sonadanga, Khulna. Mobile: 01787668289
BARISAL DIVISION
129 Barisal Branch 95, Sadar Road Tel : (0431) 64013, 64305
Barisal Fax: 0431-64305
Mob: 01713400251, 01678010224
130 Bhola Branch (1st floor) “M.R.Plaza”, Holding Tel: 0491-61399
No.0386-02, 0400-08, Sadar Road, Mob: 01755543505
Bhola, P.S.- Bhola Sadar, Pouroshova
– Bhola, Ward No.6, Dist. – Bhola,
131 Jhalakathi Branch Jhalakathi Branch (Urban) Mob: 01920145665
“Sayed Tower” (1st floor
Holding No. 57, Doctor Pattri Road,
Ward No.4, Jhalakathi Pourashava,
P.S.- Jhalakathi Sadar
Dist.- Jhalakathi.
SYLHET DIVISION
132 Sylhet Branch 963, Laldighirpar, Sylhet. Tel : (0821) 715489, 715490
Fax : 880-821-722022
Mobile # 01711-438372, 01678010225
133 Beani Bazar Branch Zaman Square (1st & 2nd Floor), Main Tel: 08223-56179
Road, Beani Bazar, Sylhet Mob: 01711922493, 01678010226
BRANCH
265
Sl.
No.
134 Ambarkhana Branch Point View Shopping Center Tel : (0821) 714357,
(1st floor), Holding No.0841-00, Fax: 0821-721729
Sunamgonj Road, Mob: 01713301067, 01678010227
Amberkhana, Sylhet.
135 Subid Bazar Branch Hannan Shopping Centre Tel : (0821) 712898, 712832
(1st Floor), Subid Bazar, Sylhet. Mobile: 01713229838, 01678010228
Fax: 0821-712898
136 Upashahar Branch Nosir Mansion (1st floor) Tel: (0821) 727224
Mendibagh C/A Mobile: 0171-3300202, 01678010229
Bishwa Road, Dist. Sylhet. Fax: 0821-727109
137 Moulvi Bazar (Dist.) 69/1, Central Road, Tel : (0861) 52392,
Branch Paschim Bazar, Fax: 0861-52363
P.O. & Dist. Moulvi Bazar Mobile # 01711435687, 01678010230
138 Sreemongal Branch Holding No.0177, “Arif Plaza” Moulvi Tel : (08626) 71924
Bazar Road, Sreemongal, Moulvi Mobile: 01711401728,
Bazar. Fax: 08626-71924
139 Goala Bazar Branch “Haji Nasibullah Market” Tel : 08242-56404.
Goalabazar, Osmaninagar Mobile No. 01713257277, 01678010233
Dist. – Sylhet Fax: 08242-56044
140 Habiganj Branch “Sankar City”, Holding No.3430, Tel- 0831-54052, 0831-54053,
R.K. Mission Road, Habiganj Sadar, Mobile: 01787668280,
Habiganj
141 Madhabpur Branch Madhabpur Branch Mob: 01708454997
“City Center” 1st Floor,
Holding No.113, Madhabpur Bazar,
Madhabpur, Habiganj
Collection Booth
Sl.
Name of Booth Address
No.
1 Medical College for Plot No.4, Road No.8-9, Sector-1, Uttara, Dhaka.
Women & Hospiral.
2 Lalmatia Mohila College. 118/2, Block-B, Ward # 32, Lalmatia, Dhaka
Division & City wise Branch List
Division 2017 City 2017

Dhaka 72 Dhaka 29
Chittagong 27 Chittagong 10
Khulna 11 Khulna 03
Rajshahi 10 Rajshahi 01
Barisal 03 Barisal 01
Sylhet 10 Sylhet 04
Rangpur 04 Rangpur 01
Mymensing 04 Mymensing 01
Total 141 Total 50
Urban & Rural List
URBAN RURAL TOTAL

99 42 141
BRANCH
Branch and Booth of IFIC Money Transfer (UK) Limited, UK
HEAD Office : 18 Brick Lane, London E1 6RF, UK
Phone: 00447951786188, 0042070609142
Fax: 00442072479670, Email: [email protected]
Sl. Name of Branch &

Address Telephone Number
No. Booth
1 IFIC Money Transfer 18 Brick Lane, London E1 6RF, UK Phone: 00447951786188 (Cell),
(UK) Limited 00442070609142 (Land Line)
Fax: 00442072479670
Email: [email protected]
2 IFIC Money Transfer 97 Turnpike Lane, London N8 ODY, UK Phone : 00442083411644
(UK) Limited
Turnpike Lane Booth
Branch Network of Oman Exchange LLC, Oman

HEAD Office : Post Box No. 994 Hay Al Mina
Postal Code No.114, Muscat (opposite to Muscat Pharmacy) Sultanate of Oman
Phone: (968) 24832197, 24830893, Fax: (968) 24835036, 24835141, E-mail: [email protected]
Sl.
No.
1 Hamriya Main Branch Post Box No.994, Hay Al Mina Phone: (968) 24833591
Postal Code No.114 Fax: (968) 24833593
Ruwi Souk Street
Hamriya, ( beside Muscat Pharmacy )
Muscat, Sultanate of Oman
2 Salalah Branch Post Box No.2039, Postal Code No. 211 Phone: (968) 23290282
Al Nadha Street Fax: (968) 23293185
Salalah, Sultanate of Oman
3 Sur Branch Post Box No.276, Postal Code No.411 Phone: (968) 25541467
Sur Souk, Sur Fax: (968) 25544035
Sultanate of Oman
4 Sohar Branch Post Box No.862, Postal Code No.311 Phone # (968) 26846339
Sohar Hospital Road Fax # (968) 26841519
Sohar, Sultanate of Oman
5 Nizwa Branch Post Box No.718, Postal Code No. 611 Phone # (968) 25413084
Nizwa Souk, Nizwa Fax # (968) 25411741
Sultanate of Oman
6 Suwaiq Branch Post Box No.497, Postal Code No.315 Phone # (968) 26861893
Suwaiq Roundabout, Next to Bank Muscat Fax # (968) 26860793
Muscat - Sohar Highway
Suwaiq, Sultanate of Oman
7 Ghubra Branch Post Box No.897, Postal Code No.133 Phone # (968) 24490360
Ghubra Roundabout (inside) Fax # (968) 24492273
First Traffic Signal Right
Ghubra, Sultanate of Oman
8 Mabelah Branch Post Box No.994, Postal Code No.114 Phone # (968) 24450613
Near Oman Oil Petrol Station Fax # (968) 24450612
Muscat – Sohar Highway
Mabelah, Sultanate of Oman
9 Barka Branch Post Box No.696, Postal Code No.320 Phone # (968) 2688 5142
Adjacent to Oman Oil Petrol Station Fax No-(968) 2688 5143
Barka – Muscat Highway
Barka, Sultanate of Oman
10 Falaj Branch Post Box No.70, Postal Code No.327 Phone: (968) 2675 3036
Sohar Industrial Estate Fax: (968) 2675 1420
Next to Doha Shopping Centre ( Before Sohar
Port)
Sohar - Muscat Highway, Sultanate of Oman
BRANCH
267
Sl.
No.
11 Saham Branch Post Box No.878 , Postal Code No.319 Phone: (968) 268 55442
Saham Fax: (968) 268 55446
Beside Omantel Office, Sultanate of Oman
12 Ruwi Branch Ruwi High Street -Centre Phone # (968) 24794792
Post Box No. 1585 Fax # (968) 24796792
Postal Code No.114, Hay Al Mina
Sultanate of Oman
13 Shinas Branch Post Box No.402, Postal Code No.324 Phone # (968) 26748315
Shinas roundabout Fax # (968) 26748316
Sultanate of Oman
14 Rustaq Branch Post Box No: 167, Postal Code No.: 329 Phone # (968) 26 87 79 12
Burj Al Radda, Ramez International (Hyper Fax : (968) 26 87 79 13
Market) Rustaq
South Batinah Governorate, Sultanate of Oman
Branch Network of Nepal Bangladesh Bank Limited, Nepal

Head Office : Kamaldi, Khathmandu
SWIFT: NPBBNPKA
Sl.
No.
1 Corporate Branch District: Kathmandu, Municipality: Kathmandu Phone: 01-4233780/81/82/83/84/85
2 Newroad Branch District: Kathmandu, Municipality: Kathmandu Phone # 01-4241368/4224477
3 Battar Branch District: Nuwakot, Municipality: Bidur Phone # 010-560256
4 Bhaisepati Branch District: Lalitpur, Municipality: Lalitpur Phone # 01-5590028
5 Main Branch District: Kathmandu, Municipality: Kathmandu Phone # 01-4780770/4781195
6 Janakpur Branch District: Dhanusha, Municipality: JANAKPUR Phone # 041-521548
7 Kalimati Branch District: Kathmandu, Municipality: Kathmandu Phone # 01-4277298
8 Butwal Branch District: Rupamdehi, Municipality: Butwal Phone # 071-544845
9 Hetauda Branch District: Makwanpur, Municipality: Hetauda Phone # 057-525282
10 Birgunj Branch District: Parsa, Municipality: Birgunj Phone # 051-523689
11 Nepalgunj Branch District: Banke, Municipality: Nepalgunj Phone # 081-415021
12 Biratnagar Branch District: Morang, Municipality: Biratnagar Phone # 021-530523
13 Tatopani (Barhabise) District: Sindhupalchwok Phone# 011489022

Branch
14 Dhangadhi Branch District: Kailali Branch, Municipality: Dhangadhi Phone # 091-521785
15 Pokhara Branch District: Kaski, Municipality: Pokhara Phone # 061-533134
16 Kapon Branch District: Kathmandu, Municipality: Budanilkantha Phone # 01-4823335
17 Baglung Branch District: Baglung, Municipality: baglung Phone # 068-522872
18 Daldale Branch District: Nawaiparasi, Municipality: Dhangadhi Phone # 091-521785
19 Chhathae Branch District: Terhathum, Municipality: Chhather Rural Phone # 9851142173
20 Lalitpur Branch District: Lalitpur, Municipality: Lalitpur Phone # 01-5008721/5554011
21 Dharan Branch District: Sunsari, Municipality: Dharan Phone # 025-530166
BRANCH
Sl.
No.
22 Bhaktapur Branch District: Bhaktapur, Municipality: Suryabinayak Phone # 01-6613170
23 Dhunche Branch District: Rashuwa, Municipality: Dhunche Phone # 010-540014
24 Narayanghat Branch District: Chitwan, Municipality: Bharatpur Phone # 056-570962
25 Bhojpur Branch District: Bhojpur, Municipality: Bhojpur Phone # 029-420713
26 Birtamod Branch District: Jhapa, Municipality: Birtamod Phone # 023-545724
27 Balaju Branch District: Kathmandu, Municipality: Kathmandu Phone # 01-4383768/4384170
28 Jorpati Branch District: Kathmandu, Municipality: Gokarneshwor Phone # 01-4910997/4910828
29 Bhairahawa Branch District: Rupandehi, Municipality: Siddharthnagar Phone # 071-521659
30 Salayan Branch District: Salyan, Municipality: Sarada Phone # 088-400182
31 Surkhet Branch District: Surkhet, Municipality: Birendranagar Phone # 083-520220
32 Kirtipur Branch District: Kathmandu, Municipality: Kirtipur Phone # 01-4670633/4671123
33 Darchula Branch District: Darchula, Municipality: Api Phone # 093-420242
34 Imadole Branch Distict: Lalitpur, Municipality: Lalitpur Phone # 01-5204202
35 Itahari Branch District: Sunsari, Municipality: itahari Sub Metro Phone #025-582411
36 Sinja Branch District: Jumla, Municipality: sinja Rural Phone # 9758004548
37 Panchkhapan Branch District: Sankhuwashava Phone #029-411084

Municipality: Panchakhapan
38 Sankranti Branch District: Terahathum, Municipality: Iwa Phone # 026-680052
39 Dang Branch District: Dang, Municipality: Ghorahi Phone # 082-563796
40 Biratchowk Branch District: Morang, Municipality: Koshi Haraicha Phone # 021-545789
41 Karsia Branch District: Morang, Municipality: Sorabhag Phone # 021-565038
42 Galchhi Branch District: Dhading, Municipality: Baireni Phone # 010-403127
43 Jhalari Branch District: Kanchanpur, Municipality: Jhalari Pipaladi Phone # 099-540185
44 Musikot Branch District: Rukum, Municipality: Musikot Phone # 088-530364
45 Phidim Branch District: Panchthar, Municipality: Phidim Ph # 024-521081
46 Khairehani Branch District: Chitwan, Municipality: Khairehani Ph # 056-583097/583367
47 Chainpur Branch District: Bajhang, Municipality: Jaya Prithvi Phone # 9841364770
48 Kushma Branch District: Parbat, Municipality: Kushma Phone # 067-421327
49 Khajura Branch District: Banke, Municipality: Bageswori Phone # 9845030487
50 Maharajgunj Branch District: Kathmandu Phone # 01-4376565

Municipality: Kathmandu Metro
51 Chabahil Branch District: Kathmandu Phone # 01-4482692

Municipality: Kathmandu Metro
52 Lekhnath Branch District: Kaski, Municipality: Pokhara lekhnath Phone # 061-411445
53 Sindhuwa Branch District: Dhankuta Phone # 026-404169

Municipality: Chhathar Jorpati Rural
54 Sangurigadi Branch District: Dhankuta Phone # 026-400078

Municipality: Sangurigadhi Rural
BRANCH
269
GLOBAL
NETWORK OF
CORRESPONDENT
BANKS
DIRECTORS’
AFGHANISTAN Yinzhou Bank Mizuho Bank Ltd. SpA
Bank Alfalah Limited Zhejiang Tailong Commercial National Bank of Pakistan Cassa di Risparmio di Venezia
Bank Co. Ltd. PBL Finance (Hong Kong) SPA
AUSTRALIA Zhejiang Zhuji Rural Commercial Limited Commerzbank AG
Citigroup PTY Limited Bank Co. Ltd. Skandinaviska Enskilda Banken Credito Bergamasco SPA
Citibank NA Zhejiang Hecheng Rural AB (Publ) Credito Valtellinese Soc Coop
Commonwealth Bank of Commercial Bank Co. Ltd. Societe Generale ICCREA Banca-Istitu Centrale
Australia Sydney Standard Chartered Bank del Credito
JPMorgan Chase Bank NA CZECH REPUBLIC Sumitomo Mitsui Banking Intesa Sanpaolo SPA
KEB Hana Bank Ceska Sporitelna A.S. Corporation JPMorgan Chase Bank NA
Mizuho Bank Limited Commerzbank AG Svenska Handelsbanken AB Mizuho Bank Ltd.
Unicredit Bank AG UBI Banca (Unione di Banche
AUSTRIA DENMARK (Hypobayerische) Italiane) SCP
Erste Bank Der Danske Bank A/S Wells Fargo Bank N.A. Unicredit SPA
Oesterreichischen Sparkas Nordea Bank Denkmark A/S Wing Hang Bank Ltd. Unipol Banca SPA
Erste Group Bank AG Spar Nord Bank DBS Bank Hong Kong
Raiffeisen Zentral Bank Syd Bank A/S Habib Finance International JAPAN
Oesterreich AG Limited Bank of Tokyo-Mitsubishi UFJ
EGYPT Ltd.,
BAHRAIN Bank Audi SAE HUNGARY The Bank of New York Mellon
Bank Alfalah Limited Masreqbank Budapest Bank RT The Citibank Japan Limited
Bank Al Habib Limited CIB Bank Limited Commerzbank AG
ICICI bank Limited ESTONIA Commerzbank (Budapest) RT Gifu Shinkin Bank
KEB Hana Bank Nordea Bank AB Raiffeisen Bank ZRT The Hongkong and Shanghai
Banking Corp. Ltd.
BELGIUM FINLAND INDIA JPMorgan Chase Bank NA
Bank J. Van Breda and Co. NV Danske Bank AB Bank Limited KEB Hana Bank
Belfius Bank SA/NV Danske Bank PLC Axis Bank Limited Mizuho Bank Ltd.
BNP Paribas Fortis Nordea Bank Finland PLC Bank of Tokyo-Mitsubishi UFJ, Ltd. National Bank of Pakistan
Commerzbank AG, The The Citibank N.A. Okazaki Shinkin Bank
Deutsche Bank AG FRANCE Hongkong & Shanghai Banking The Standard Chartered Bank
KBC Bank NV Banque Revillon Corp. Ltd State Bank of India
BNP Paribas SA ICICI Bank Limited Sumitomo Mitsui Banking
BHUTAN Commerzbank AG IndusInd Bank Limited Corporation
Bank of Bhutan HSBC France JPMorgan Chase Bank, N.A. Unicredit Bank AG
Druk PNB Bank Limited JPMorgan Chase Bank NA Masreqbank (Hypobayerische)
KEB Hana Bank Shamrao Vithal Co-operative Wells Fargo Bank N.A.
BRAZIL Monte Paschi Banque SA Bank Limited, The
Banco De Tokyo-Mitbushi UFJ Sonali Bank Ltd. KOREA, REPUBLIC
Brasil S/A GERMANY Standard Chartered Bank Daegu Bank Ltd., The
Banco Keb Hana Do Brasil S.A. Bankhaus Carl F. Plump & Co. State Bank of India Hongkong & Shanghai Banking
HSBC Bank Brasil-Banco Commerzbank AG Syndicate Bank Corp. Ltd.
Multiplo Danske Bank A/S Tamilnad Mercantile Bank Industrial Bank of Korea
Deutsche Bank Private-Und Limited JPMorgan Chase Bank NA
Bulgaria Geschaeltskunden AG Union Bank of India Kookmin Bank
Citibank Europe Plc, Bulgaria Deutsche Bank AG United Bank of India KEB Hana Bank
Branch Deutsche Bank Trust AG Kwangju Bank Limited, The
HSH Nord Bank AG INDONESIA National Bank of Pakistan
CANADA JPMorgan AG Bank of Tokyo-Mitsubishi UFJ Pusan Bank
BNP Paribas Canada Joh. Berenberg, Gossler Und. Co. Ltd. Shinhan Bank
Habib Canadian Bank KG The Bank Mandiri (Persero) PT Standard Chartered Bank
HSBC Bank Canada KEB Hana Bank Deutschland AS Citibank NA Wells Fargo Bank N.A.
KEB Hana Bank Canada Landesbank Hongkong and Shanghai banking Woori Bank
Royal Bank of Canada Baden-Wuerttemberg Corp. Ltd.
Sparkasse Hannover JPMorgan Chase Bank, N.A. KSA
CHINA, PEOPLE'S REPUBLIC Sparkasse Krefeld PT Bank Pembangunan Daerah Bank Muscat SAOG
Bank of Guiyang Sparkasse Nuernberg Jawa Timur Tbk Islamic Development Bank
Bank of Hebei SEB AG PT Bank Syariah Mandiri JPMorgan Chase Bank, N.A.
Bank of Huzhou Co. Ltd. Unicredit Bank AG Standard Chartered Bank Saudi British Bank, The
Bank of New York Mellon, The (Hypobayerische)
Bank of Ruifeng Volksbank Remscheid-Soligen IRELAND KUWAIT
Bank of Taizhou Co. Ltd. Eg Citibank Europe PLC BankMuscat SAOG
BNP Paribas (China) Ltd. Volksbank Reutlingen EG Danske Bank A/S Citibank N.A.
China Everbright Bank Wells Fargo Bank International National Bank of Kuwait
Citibank (China) Co. Ltd. HONG KONG
Commerzbank AG AB International Finance Limited ITALY LUXEMBOURG
Foshan Rural Commercial Bank Axis Bank Limited Banca Carim-Cassa Di Risparmio Danske Bank International A/S
Co. Ltd. Banca Monte Dei Paschi Di Siena Di Rimini
HSBC Bank (China) Co. Ltd. SpA Banca Delle Marche SPA MALAYSIA
Jiangsu Jiangnan Rural Bank of America, N.A. Banca di Credito Cooperative di Citibank Berhad
Commercial Bank Co. Ltd. Bank of New York Mellon, The Cambiano HSBC Bank Malaysia Berhad
JPMorgan Chase Bank (China) Bank of Tokyo-Mitsubishi UFJ Banca Monte Dei Paschi Di Siena JPMorgan Chase Bank Berhad
Company Ltd. Ltd., The SpA Malayan Banking Berhad
Jiangsu Jiangyin Rural BNP Paribas Banca Popolare Dellemilia (Maybank)
Commercial Bank Citibank N.A. Romagna Standard Chartered Bank
Laishang Bank Co. Ltd. Commerzbank AG Banca Popolare Di Marostica
Ningbo Yuyao Rural Commercial EBL Finance (HK) Limited Banca Popolare Di Sondrio MALDIVES
Bank Co. Ltd. E.SUN Commercial Bank Limited Banca Popolare Valconca Bank of the Maldives PLC
Ping an Bank Co. Ltd. Habib Bank Zurich (Hong Kong) Banca Populare Dell Etruria E
Skandinaviska Enskilda Banken Ltd. Dell Lazio MALTA
AB (publ) Hongkong and Shanghai Banking Banca UBAE SPA AKbank T.A.S.
Standard Chartered Bank (China) Corp. Banco Di Napoli SPA
Limited ICICI Bank Limited Bank of Tokyo-Mitsubishi UFJ
Weifang Rural Commercial Bank Intesa Sanpaolo SPA Ltd.,
Co. Ltd. JPMorgan Chase Bank NA The Cassa Di Risparmio Del
Wells Fargo Bank N.A. KEB Hana Bank Veneto SPA
Woori Bank (China) Limited Mashreqbank PSC Cassa di Risparmio di Cesena
GLOBAL NETWORK OF
271
CORRESPONDENT BANKS Annual Report 2017
NEPAL AB (Publ) JPMorgan Chase Bank, N.A. Sonali Bank (UK) Ltd.
Himalayan Bank Limited Standard Chartered Bank Krung Thai Bank Public Company Standard Chartered Bank
Nepal Bangladesh Bank Ltd. Sumitomo Mitsui Banking Ltd. United National Bank Ltd.
Corporation Mizuho Bank Ltd. Wells Fargo Bank N.A.
NETHERLANDS Unicredit Bank AG Standard Chartered Bank Wells Fargo Securities Int’l Ltd.
ABN Amro Bank N.V. (Hypobayerische) Sumitomo Mitsui Banking
Bank of America N.A. United Overseas Bank Ltd. Corporation UZBEKISTAN
Commerzbank AG Wells Fargo Bank, NA, Singapore Central Bank of the Republic
Deutsche Bank AG Branch TURKEY Uzbeki
Deutsche Bank Nederland N.V. AK Bank T.A.S. National Bank for Foreign
KEB Hana Bank SLOVENIA Albaraka Turk Katilim Bankasi AS Economic
Dezelna Banka Slovenije D.D. Alternatifbank AS
NEW ZEALAND Nova Kreditna Banka Maribor Asya Katilin Bankasi AS VIETNAM
Bank of New Zealand D.D. Fibabanka AS Asia Commercial Joint Stock
General Equity Building Society Unicredit Banka Slovenija D.D. FinansBank A.S. Bank
HSBC Bank A.S. HSBC Bank (Vietnam) Limited
NIGERIA SOUTH AFRICA Tekstil Bankasi AS Joint Stock Commercial Bank for
Guaranty Trust Bank Plc Citibank South Africa Turk Ekononi Bankasi A.S. Inv. & Development
NED Bank Limited Turkiye Garanti Bankasi AS JPMorgan Chase Bank, N.A.
NORWAY KEB Hana Bank
Danske Bank A/S SPAIN U.A.E. Woori Bank
DNB Bank ASA Banco De Sabadell S.A. Abu Dhabi Commercial Bank
Nordea Bank Norge ASA Bank of Tokyo-Mitsubishi UFJ PJSC BANGLADESH
Sparebank 1 SR-Bank ASA Ltd., Axis Bank Limited AB Bank Limited
The Bankia S.A. Citibank N.A. Agrani Bank Limited
OMAN CAIXABANK S.A. Emirates NBD Bank PJSC Al-Arafah Islami Bank Limited
Bank Dhofar (S.A.O.G) Caja Espana De Inversones First Gulf Bank PJSC Bank Asia Limited
Bank Muscat SAOG Commerzbank AG Habib Bank AG Zurich BRAC Bank Limited
Laboral Kutxa Habib Bank Limited Bangladesh Commerce Bank
PAKISTAN Abanca Corporacion Bancaria, Mashreqbank PSC Limited
Bank Al Habib Limited A.S. Noor Islamic Bank PJSC Bangladesh Krishi Bank
Habib Bank Limited Standard Chartered Bank Bangladesh Development Bank
Habib Metropolitan Bank Limited SRI LANKA United Bank Limited Limited
Meezan Bank Limited ICICI Bank Limited The National Bank RAS AL Bank Alfalah Limited
National Bank of Pakistan Nations Trust Bank Ltd. Khaimah Basic Bank Limited
NIB Bank Limited Seylan Bank PLC Citibank N.A.
Summit Bank Limited Standard Chartered Bank U.S.A City Bank Limited
Bank of America, N.A. Commercial Bank of Ceylon Plc
PANAMA SWEDEN Bank of New York Mellon Dhaka Bank Limited
KEB Hana Bank Danske Bank The Bank of Tokyo-Mitsubishi Dutch-Bangla Bank Limited
DNB Bank ASA UFJ Ltd., Eastern Bank Limited
PHILIPPINES Nordea Bank AB (PUBL) The BNP Paribas USA Export Import Bank Limited
Asian Development Bank (Stockholm) Cathay Bank Farmers Bank Limited
Hongkong and Shanghai Banking Skandinaviska Enskilda Banken Citibank NA The First Security Islami Bank
Corp. Ltd. AB City National Bank Limited
JPMorgan Chase Bank, N.A. Svenska Handelsbanken Deutsche Bank Trust Company Habib Bank Limited
KEB Hana Bank SWED Bank Americas Hong Kong and Shanghai
First Citizens Bank Banking Corp. Ltd.
POLAND SWITZERLAND Habib American Bank ICB Islamic Bank Limited
Bank Handlowy W Warszawie SA Banque Cantonale De Geneve Habib Bank Limited Islami Bank Bangladesh Limited
Bank Polska Kasa Opieki SA BNP Paribas (Suisse) SA HSBC Bank USA Jamuna Bank Limited
Danske Bank A/S Habib Bank AG Zurich ICICI Bank Limited Janata Bank Limited
Deutsche Bank Polska SA UBL (Switzerland) AG JPMorgan Chase Bank NA Meghna Bank Limited
MBANK S.A. (Formerly BRE Valiant Bank Masreqbank PSC Mercantile Bank Limited
Bank) Zurcher Kantonal Bank Mizuho Bank Ltd. Midland Bank Limited
Regions Bank Modhumoti Bank Limited
QATAR TAIWAN RBS Citizens NA Mutual Trust Bank Limited
Doha Bank Bank of New York Mellon Standard Chartered Bank National Bank Limited
Masreqbank The Chang Hwa Commercial Sterling National Bank National Bank of Pakistan
Bank Ltd. Sumitomo Mitsui Banking National Credit and Commerce
RUSSIAN FEDERATION Citibank Taiwan Limited Corporation Bank Limited
Necklace Bank Limited Deutsche Bank AG UMB Bank N.A. NRB Bank Limited
E.SUN Commercial Bank Limited Union Bank NA NRB Commercial Bank Limited
SINGAPORE HSBC Bank (Taiwan) Limited United Bank Limited NRB Global Bank Limited
Axis Bank Limited JPMorgan Chase Bank NA US Bank One Bank Limited
Bank of America, N.A. MEGA International Commercial Wells Fargo Bank N.A. Premier Bank Limited
Bank of Tokyo-Mitsubishi UFJ Bank Co. Ltd. Woori Bank Prime Bank Limited
Ltd., Standard Chartered Bank Woori America Bank Pubali Bank Limited
The BNP Paribas Standard Chartered Bank Rupali Bank Limited
BNP Paribas Wealth (Taiwan) Ltd. UKRAINE Shahjalal Islami Bank Limited
Management Sumitomo Mitsui Banking PJSC Bank Credit Dnepr Social Islami Bank Limited
Citibank N.A. Corporation Sonali Bank Limited
Commerzbank AG Wells Fargo Bank N.A. UNITED KINGDOM Southeast Bank Limited
Deutsche Bank AG Bank of America N.A. South Bangla Agriculture &
DBS Bank Limited THAILAND Citibank NA Commerce Bank Ltd.
Emirates NBD Bank PJSC Bangkok Bank Public Company Commerzbank AG Standard Bank Limited
Habib Bank Limited Ltd. Danske Bank A/S Standard Chartered Bank
Hongkong and Shanghai Banking Bank for Agriculture and Emirates NBD Bank PJSC State Bank of India
Corp. Agricultural Cooperatives Habib Bank AG Zurich Trust Bank Limited
ICICI bank Limited Bank of Ayudhya Public Habib-UK Plc Union Bank Limited
Indian Bank Company Limited HSBC Bank Plc United Commercial Bank Limited
JPMorgan Chase Bank NA Bank of Tokyo-Mitsubishi UFJ Intesa Sanpaolo SPA Uttara Bank Limited
KEB Hana Bank Ltd. JPMorgan Chase Bank NA Woori Bank
Mizuho Bank Ltd. The Citibank N.A. KEB Hana Bank Shimantoo Bank Limited
National Bank of Kuwait S.A.K., Export-Import Bank of Thailand Masreqbank PSC
The Nordea Bank Finland PLC Hongkong & Shanghai Banking Mizuho Bank Ltd.
Skandinaviska Enskilda Banken Corp. Ltd. Northern Bank
GLOBAL NETWORK OF
272 Annual Report 2017 CORRESPONDENT BANKS
NOTICE OF
THE 41ST AGM
DIRECTORS’
273
Head Office : IFIC Tower, 61, Purana Paltan, G.P.O. Box: 2229, Dhaka-1000
Notice of the 41st Annual General Meeting

Notice is hereby given to the Members of International Finance Investment and Commerce Bank Limited
(IFIC Bank Limited) that the 41st Annual General Meeting of the Company will be held on Sunday, 24 June
2018 at 11.00 a.m. at Officers’ Club, 26, Bailey Road, Ramna, Dhaka-1000 to transact the following agenda:
AGENDA
1) To receive, consider and adopt the Audited Financial Statements of the Bank for the year ended on
31 December 2017 together with the Reports of the Auditors and Directors thereon.
2) To declare dividend for the year ended on 31 December 2017 as recommended by the Board of Directors.
3) To elect/re-elect Director(s) of the Bank.
4) To appoint the External Auditors of the Bank for the term until the next Annual General Meeting and to fix
their remuneration.
5) To confirm the appointment of Independent Director.
6) To transact any other business/issue with the permission of the Chair.

By order of the Board of Directors
Dated: Dhaka (Md. Mokammel Hoque)

03 June 2018 Company Secretary
Notes :
1) The ‘Record Date’ was fixed on 10 May 2018 (Thursday).
2) The Shareholders whose names appeared in the Share Register of the Bank and/or in the Depository
(CDBL) Register on the ‘Record Date’ i.e. 10 May 2018 shall be eligible to attend the AGM and will be
entitled to the Dividend.
3) The Board of Directors has recommended Stock Dividend @ 12% for the year ended on 31 December 2017
for approval of the Shareholders in the 41st Annual General Meeting of the Bank.
4) A Shareholder eligible to attend and vote at the AGM may appoint a Proxy to attend and vote on his/her
behalf. Proxy Form duly completed by the Shareholder and Power of Attorney/Letter of Authorization
from a Company/Corporation must be submitted to the Registered Office of the Company at least 72
(seventy two) hours before the time fixed for holding of the Meeting.
5) In case of non-receipt of Annual Report 2017 sent through Courier Services, Members may collect the
same from the Share Department of the Company located at BDBL Bhaban (10th Floor), 8, Rajuk Avenue,
Dhaka-1000 within 20 June 2018. The Annual Report 2017 is also available at the Investors’ Relation
page of Bank’s website: www.ificbank.com.bd
6) The retiring Directors shall be eligible for election/re-election as per provision laid down in the Articles of
Association of the Bank.
7) For convenience of the Honourable Shareholders and Proxy-holders, the ‘Registration Counters’ of the
Annual General Meeting shall be opened at 9.00 a.m. on the date fixed for the Meeting.
8) No Gift/Gift Coupon/Food Box etc. or benefit in cash or kind shall be provided to the Shareholders in
the 41st AGM, in compliance with Regulation 24(2) of the Listing Regulations, 2015 of both the Stock
Exchanges (DSE & CSE).
DIRECTORS’
ATTENDANCE
SLIP
DIRECTORS’
275
Attendance Slip
I hereby record my attendance at the 41st Annual General Meeting of International Finance Investment and
Commerce Bank Limited (IFIC Bank Limited) being held on Sunday, 24 June 2018 at 11.00 a.m. at Officers’
Club, 26, Bailey Road, Ramna, Dhaka-1000.
Name of the Shareholder(s) : …..………………................................................................................………………………………………………..
Folio/BO ID No.

Signature of the Shareholder
Note: Honourable Shareholders attending the Meeting in person is requested to complete the Attendance Slip and deposit
the same to the ‘Registration Counter’ at the AGM venue. Signature in the Attendance Slip must tally with the signature
recorded with the Company (In case of folio, signature recorded with the Share Department and for BO holders,
signature received from the CDBL).
DIRECTORS’
PROXY FORM
DIRECTORS’
277
Affix
Revenue
Stamp of
BDT 20.00
Proxy Form
I/We ...................................................................................................................................................................................................................................
Folio/BO ID No.
Address : ...................................................................................................................................................................................................................,
being a Shareholder of International Finance Investment and Commerce Bank Limited, do hereby appoint
Mr./Ms ...............................................................................................................................................................................................................................
of .........................................................................................................................................................................................................................................
Cell/Land Phone # ......................................................................................................................................................................................................

as my/our Proxy in my/our absence to attend and vote for me/us on my/our behalf at the 41st Annual General
Meeting of the Company scheduled to be held on Sunday, 24 June 2018 at 11.00 a.m. at Officers’ Club, 26,
Bailey Road, Ramna, Dhaka-1000 and at any adjournment thereof.
In witness whereof I/We set my/our hand(s) on this the ............................................... day of .............................................2018.
Signature of the Proxy .............................................................................................................................................................................................
Signature of the Shareholder(s) ...........................................................................................................................................................................
No. of shares held ................................................................................ Cell/Land Phone # ............................................................................
Note : The Proxy Form duly stamped and completed in all respect must be deposited to the Share Department of the
Company at least 72 (seventy two) hours before the schedule time of the Meeting for attestation. Signature of the
Shareholder(s) must tally with the signature recorded with the Company (In case of folio, signature recorded with
the Share Department and for BO holders, signature received from the CDBL).

Attendance Slip for Proxy-Holder

I hereby record my attendance at the 41st Annual General Meeting of International Finance Investment and
Commerce Bank Limited being held on Sunday, 24 June 2018 at 11.00 a.m. at Officers’ Club, 26, Bailey
Road, Ramna, Dhaka-1000.
Name of the Shareholder (s) : ...............................................................................................................................................................................
Folio/BO ID No.
No. of Shares held .........................................................................................................................................
Name of the Proxy-holder.........................................................................................................................
Signature of the Proxy-holder ................................................................................................................. Signature of the approving

Official of IFIC Bank Limited
Signature of the Shareholder(s) .........................................................................................................................................................................

Note : The Proxy-holder attending the Meeting is requested to deposit the Attendance Slip to the ‘Registration
Counter’ at the AGM venue.
DIRECTORS’
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DIRECTORS’
279
Note
DIRECTORS’
Head Office : IFIC Tower, 61 Purana Paltan, GPO. Box: 2229, Dhaka-1000, Bangladesh
Tel: 9563020, IP Phone No. : 09666716250 (Hunting), Fax: 880-2- 9554102, Swift: IFIC BD DH
E-mail: info@ificbankbd.com Website: www.ificbank.com.bd

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Fo c u s i n g o n Yo u r I n t e r e s t s

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Highlights of Year 2017 1

Letter of Transmittal 6-7

Ethical Principles 10-12

Cautionary Statement Regarding Forward Looking Approach 14

Global Corporate Structure 16

Milestones in the Development 17

Information on Corporate Governance 18-71

Composition of Board and its Committees 19

Photograph of Board of Directors 20-21

Directors’ Profile 22-23

Chairman’s Message 25-27

Managing Director & CEO’s Review 28-30

Directors’ Report 31-51

Report of the Executive Committee 52-53

Report on the Activities of the Audit Committee 54-56

Report of the Risk Management Committee 57-58

Corporate Governance Practices 59-71

Compliance Report on BSEC’s Notification 62-69

CEO and CFO’s Declaration to the Board 70

Management Discussion & Analysis 72-81

Market Value Added Statement 80

Economic Value Added Statement 81

Human Capital 81-83

Branding and Promotional Activities 83

Media Highlights 2017 84-86

Shareholders’ Information 87-94

Directors’ Shareholding Status 88

Five Years Performance of the Bank 89-90

Five Years Graphical Presentation 91-92

Market Price Information 93

Redressal of Investors’ Complaints 94

Glimpses of the 40 AGM

Market Discipline - Disclosures on Risk Based Capital Under Basel-III 97-112

Report on Sustainable Finance (Green Banking) 113-114

Report on Risk Management 115-126

Corporate Social Responsibility 127-128

Products and Services 129

Financial Statements 130-227

Independent Auditors’ Report to the Shareholders 131-132

Consolidated and Separate Financial Statements 133-222

Financial Highlights on the Overall Activities 221

Financial Statements of Off-shore Banking 223-227

Financial Statements of the Subsidiaries 228-252

IFIC Securities Limited (including Directors’ and Auditors’ Report) 229-245

Important Events 2017 253-256

Branch Network 257-269

Global Network based on Portfolio 267-269

Global Network of Correspondent Banks 270-272

Notice of the 41st Annual General Meeting 273-274

Attendance Slip 275-276

Proxy Form 277-278

Annual Report for the year ended 31 December 2017

Md. Mokammel Hoque

We are committed to the welfare and

In an intensely competitive and complex

Market Category Chief Financial Officer

Tax Payer Identification Number (TIN) Company Secretary