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Janata Bank Limited

Auditor’s Report
And
Financial Statements
as at and for the year ended 31 December 2018

AZIZ HALIM KHAIR CHOUDHURY


CHARTERED ACCOUNTANTS
EXCLUSIVE CORRESPONDENT FIRM OF PKF INTERNATIONAL
GLOBAL EXPERTISE, LOCAL KNOWLEDGE

Phulbari House
House 25 Road 1 Sector 9
Uttara Model Town, Dhaka-1230

www.ahkcbd.com
INDEPENDENT AUDITOR’S REPORT
TO THE SHAREHOLDERS OF JANATA BANK LIMITED

Report on the Financial Statements

Opinion
We have audited the accompanying consolidated financial statements of Janata Bank
Limited and its subsidiaries (the “Group”) as well as the separate financial statements of
Janata Bank Limited (the “Bank”), which comprise the consolidated and separate balance
sheets as at 31 December 2018 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 year then ended, and notes to the
consolidated and separate financial statements, including a summary of significant
accounting policies.

In our opinion, the accompanying consolidated financial statements of the Group and
separate financial statements of the Bank give a true and fair view of the consolidated
balance sheet of the Group and the separate balance sheet of the Bank as at 31
December 2018, and of its consolidated and separate profit and loss accounts and its
consolidated and separate cash flows for the year then ended in accordance with
International Financial Reporting Standards (IFRSs) as explained in note 2.00

Basis for Opinion


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

Key Audit Matters


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

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

Our opinion on the consolidated and separate financial statements does not cover the
other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the
other information identified above when it becomes available and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated.

Responsibilities of Management and Those Charged with Governance for the


Consolidated and Separate Financial Statements and Internal Controls
Management is responsible for the preparation and fair presentation of the consolidated
financial statements of the Group and also separate financial statements of the Bank in
accordance with IFRSs as explained in note 2.00, and for such internal control as
management determines is necessary to enable the preparation of consolidated and
separate financial statements that are free from material misstatement, whether due to
fraud or error. The Bank Company Act, 1991 and the Bangladesh Bank Regulations
require the Management to ensure effective internal audit, internal control and risk
management functions of the Bank. The Management is also required to make a self-
assessment on the effectiveness of anti-fraud internal controls and report to Bangladesh
Bank on instances of fraud and forgeries.

In preparing the consolidated and separate financial statements, management is


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

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

Auditor’s Responsibilities for the Audit of the Consolidated and Separate


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

As part of an audit in accordance with ISAs, we exercise professional judgment and


maintain professional skepticism throughout the audit. We also:

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

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

 Evaluate the appropriateness of accounting policies used and the reasonableness


of accounting estimates and related disclosures made by management.

 Conclude on the appropriateness of management’s use of the going concern basis


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

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

 Obtain sufficient appropriate audit evidence regarding the financial information of


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

 We communicate with those charged with governance regarding, among other


matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our
audit.

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

 From the matters communicated with those charged with governance, we


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

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

(i) we have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit and made due
verification thereof;

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

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

(b) nothing has come to our attention regarding material instances of forgery or
irregularity or administrative error and exception or anything detrimental committed by
employees of the Group and its related entities other than matters disclosed in these
financial statements;

(iii) financial statements of 3 (three) subsidiaries namely, Janata Exchange Company Srl
Italy, Janata Exchange Co. Inc. USA and Janata Capital and Investment Limited Dhaka
have been audited by Dott. Marco Bernabei, Rome; United Financial CPA P.C, New York
and Malek Siddiqui Wali, Chartered Accountants respectively on 31st December 2018.
These accounts have been properly reflected in the consolidated financial statements;

(iv) in our opinion, proper books of accounts as required by law have been kept by the
Group and the Bank so far as it appeared from our examination of those books and
proper returns adequate for the purpose of our audit have been received from the
branches not visited by us;

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

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

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

(viii) the consolidated financial statements of the Group and the separate financial
statements of the Bank have been drawn up in conformity with prevailing rules,
regulations and accounting standards as well as related guidance, circulars issued by
Bangladesh Bank and Bangladesh Bank letter ref: BRPD(P-1)/661/13/2019-3266 dated 25
April 2019;

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(ix) Provisions as explained in the note 7.14 and 13.06.02 have been made for loans and
advances which are, in our opinion, doubtful of recovery as per terms mentioned in the
Bangladesh Bank letter ref: BRPD(P-1)/661/13/2019-3266 dated 25 April 2019;

(x) the information and explanations required by us, as it appeared from our examination
on a test basis, have been received and reported accordingly;

(xi) Capital to Risk-weighted Asset Ratio (CRAR) as required by Bangladesh Bank has
been maintained as per terms mentioned in the Bangladesh Bank letter
ref: BRPD(P-1)/661/13/2019-3266 dated 25 April 2019; and

(xii) we have reviewed over 80% of the risk weighted assets of the Bank covering 60
branches as well as head office and spent over 17,155 person-hours for the audit of the
books and accounts of the bank.

____________________________
Dhaka, 29 April 2019 Dr. Jamshed S A Choudhury FCA
Senior Partner & International Liaison Partner

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Janata Bank Limited
Notes to the consolidated and separate financial statements
as at and for the year ended 31 December 2018
1.00 Corporate Information
1.01 Reporting Entity

Janata Bank Limited is a state owned commercial bank incorporated on 21 May 2007 under the Company
Act 1994 as a public limited company and governed by the Bank Company Act 1991(As amended in
2013). Janata Bank Limited took over the businesses, assets, liabilities, right, power, privilege and
obligation of erstwhile Janata Bank (emerged as a Nationalized Commercial Bank in 1972), pursuant to
Bangladesh Bank Nationalization order 1972 (P.O. No. 26 of 1972) on a going concern basis through a
vendor agreement signed between the Ministry of Finance, People's Republic of Bangladesh on behalf
of Janata Bank and the Board of Directors on behalf of Janata Bank Limited on 15 November 2007 with
a retrospective effect from 1 July 2007. The bank has 913 branches including four overseas branches and
3(three) 100% owned subsidiaries named as Janata Exchange Company Srl. Italy, Janata Exchange Co,
Inc. USA and Janata Capital and Investment Limited, Dhaka.

Bangladesh Bank issued license on 31 May 2007 in the name of Janata Bank Limited to conduct the
banking business. The registered office of the company is located at 110 Motijheel C/A, Dhaka-1000 and
the website addresses are www.janatabank-bd.com and jb.com.bd.
1.02 Nature of Business
The bank provides all kinds of commercial banking services to its customers including accepting
deposits, providing loans & advances, discounting & purchasing bills, remittance, money transfer,
foreign exchange transaction, guarantee, commitments etc. The principal activities of its subsidiaries
Janata Exchange Company Srl. Italy (JEC) and Janata Exchange Co, Inc. USA is to carry on the
remittance of hard-earned foreign currency to Bangladesh and that of another subsidiary company Janata
Capital and Investment Limited, Dhaka is to act as issue manager, share underwriter and portfolio
manager. The bank has opened an NRB branch at Motijheel, Dhaka to render exclusive service to non-
resident Bangladeshis.
1.03 Subsidiaries of the Bank
Janata Bank Limited has 3(three) 100% owned subsidiaries named Janata Exchange Company Srl. Italy,
Janata Exchange Co, Inc. USA and Janata Capital and Investment Limited, Dhaka, Bangladesh.

1.03.01 Janata Exchange Company Srl, Italy


Janata Exchange Company Srl. Italy was incorporated on 18 January 2002 vide Ministry of Finance letter
# Ag/Awe/e¨vswKs/kv-7/wewea-12(2) 2000 dated 3 January 2001 and letter # Ag/Awe/e¨vswKs/kv-7/12(2)2000/164
dated 27 June 2001 with 100% ownership of Janata Bank Limited having authorised capital of ITL 1.00
Billion and its paid-up capital is 600,000 EURO.
Apart from Rome branch, JEC, Italy has another branch in Milan, Italy, which was established, vide
MOF’s approval Letter # Ag/Awe/e¨vswKsbxt/kv-1 /12/ (2)/200/ 3/352 dated 24 November 2002.

1.03.02 Janata Exchange Co, Inc. USA


Janata Exchange Co., Inc. USA was incorporated on 10 April 2012 vide Bangladesh Bank Letter No.
BRPD(M)204/7/2011-342 dated 28 December 2011 with 100% ownership of Janata Bank Limited
having capital of US$ 1.00 million.

1.03.03 Janata Capital and Investment Limited, Dhaka


Janata Capital and Investment Limited Dhaka was incorporated on 13 April 2010 vide incorporation
certificate no. C-83898/10 issued by the Registrar of Joint Stock Companies and Firms (RJSC) with
100% ownership of Janata Bank Limited having BDT 5,000 million authorised capital and its paid-up
capital is BDT 4,274 million. The company starts its operations from 26 September 2010 and its main
functions are issue management, underwriting and portfolio management.

1.03.04 Accounting Policies of Subsidiaries


The Financial Statements of three subsidiaries have been prepared and all assets, liabilities, income and
expenses are measured and regularised under Group accounting policies as Parent Company follows.

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2.00 Basis of Preparation and Significant Accounting Policies

2.01 Statement of Compliance


The consolidated financial statements of the group and the solo financial statements of Janata Bank
Limited (JBL) have been prepared as per as possible in accordance with International Financial Reporting
Standards ('IFRS')) adopted by the Institute of Chartered Accountants of Bangladesh ('ICAB') (Details
in note no. 2.20) and the First Schedule (Section-38) of the Bank Companies Act-1991 (amended in
2013) and Banking Regulation and Policy Department (BRPD) circular no-14, dated 25 June 2003 of
Bangladesh Bank & other relevant circulars of Bangladesh Bank. In case, the requirement of Bangladesh
Bank differs with those of BFRS, the requirement of Bangladesh Bank have been complied. JBL also
complied with the requirement of following laws & regulations.

(a) The Bank Companies Act, 1991 (as amended in 2013)


(b) The Companies Act, 1994
(c) Rules & Regulations issued by Bangladesh Bank
(d) Securities & Exchange Rules, 1987
(e) Securities & Exchange Ordinance, 1969
(f) Securities & Exchange Act, 1993
(g) The Income-tax Ordinance, 1984
(h) VAT Act, 1991.

The group and the bank have chosen to comply with the rules & regulations of Bangladesh Bank (Central
Bank of Bangladesh) over the requirements of BFRS which are disclosed below:

2.01.01 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 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 and Bangladesh Bank Letter No.
DOS(SR)1153/161/2013-140 dated 09 April 2013 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.
2.01.02 Revaluation gains/losses on Government securities
BFRS: As per requirement of BAS 39 where securities will fall under the category of Held for Trading
(HFT), any changes in the fair value of held for trading assets is recognised through profit and loss
account. Securities designated as Held to Maturity (HTM) are measured at amortised cost method and
interest income is recognised through the profit and loss account using an effective interest rate.

Bangladesh Bank: HFT securities are revalued on the basis of mark to market on weekly basis and any
gains on revaluation of securities which have not matured as at the balance sheet date are recognised in
other reserves as a part of equity and any losses on revaluation of securities which have not matured as
at the balance sheet date are charged in the Profit and Loss Account. Interest on HFT securities including
amortization of discount are recognised in the profit and loss account. HTM securities which have not
matured as at the balance sheet date are amortised at the year end and any losses are recognized through
profit and loss account and gains on amortization are recognised in other reserve as a part of equity.
2.01.03 Financial instruments – presentation and disclosure
In several cases Bangladesh Bank guidelines categorise, recognise, measure and present financial
instruments differently from those prescribed in BAS 39. As such full disclosure and presentation
requirements of BFRS 7 and BAS 32 cannot be made in the financial statements.
2.01.04 Financial guarantees
BFRS: As per BAS 39, financial guarantees are 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 guarantee liabilities are
recognised initially at their fair value, and the initial fair value is amortised over the life of the financial
guarantee. The financial guarantee liability is subsequently carried at the higher of this amortised

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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 14, financial guarantees such as letter of credit, letter of guarantee
will be treated as off-balance sheet items. No liability is recognised for the guarantee except the cash
margin. 1% provision is maintained on such off balance sheet items as per guidelines of Bangladesh
Bank.

2.01.05 REPO transactions


BFRSs: When an entity sells a financial asset and simultaneously enters into an agreement to repurchase
the same (or a similar asset) at a fixed price on a future date (REPO or stock lending), the arrangement
is accounted for as a collateralized borrowing and the underlying asset continues to be recognized in the
entity’s financial statements. This transaction will be treated as borrowing and the difference between
selling price and repurchase price will be treated as interest expense.
Bangladesh Bank: As per BB circulars/guidelines, when a bank sells a financial asset and
simultaneously enters into an agreement to repurchase the same (or a similar asset) at a fixed price on a
future date (REPO or stock lending), the arrangement is accounted for as a normal sale transaction and
the financial assets should be derecognized in the seller’s book and recognized in the buyer’s book.

2.01.06 Loans and advances/Investments net of provision


BFRS: Loans and advances/Investments should be presented net of provision.

Bangladesh Bank: As per BRPD 14, provision on loans and advances/investments are presented
separately as liability and cannot be netted off against loans and advances.

2.01.07 Provision on loans and advances/investments


BFRS: As per BAS 39 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 (23 September 2012), BRPD circular No. 19 (27
December 2012), BRPD circular No. 05 (29 May 2013) and BRPD circular No. 16 (18 November 2014)
a general provision at 0.25% to 5% under different categories of unclassified loans (good/standard &
SMA loans) has to be maintained regardless of objective evidence of impairment. Also provision for sub-
standard loans, doubtful loans and bad/losses has to be provided at 20%, 50% and 100% (in case of
agricultural loan 5% for sub-standard loans & doubtful loans and 100% for bad/losses) respectively for
loans and advances depending on the duration of overdue. Again as per BRPD circular no. 10 dated 18
September 2007 and BRPD circular no. 14 dated 23 September 2012, a general provision at 1% is
required to be provided for all off-balance sheet exposures. Such provision policies are not specifically
in line with those prescribed by BAS 39.
2.01.08 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 using an effective interest rate method over the term of the loan.
Once a loan is impaired, interest income is recognised in Profit and Loss Accounts 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 (SS
& DF), interest on such loans are not allowed to be recognised as income, rather the corresponding
amount needs to be credited to interest suspense account, which is presented as liability in the balance
sheet.
2.01.09 Cash and cash equivalent
BFRS: Cash and cash equivalent items should be reported as cash item as per BAS 7.
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

21
at call and short notice presented on the face of the balance sheet, and treasury bills, prize bonds are
shown in investments.

2.01.10 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 14, off balance sheet items (e.g. Letter of credit, Letter of guarantee,
Bills for collection etc.) must be disclosed separately on the face of the balance sheet.

2.01.11 Non-banking asset


BFRS: No indication of Non-banking asset is found in any BFRS.

Bangladesh Bank: As per BRPD 14, there must exist a face item named Non-banking asset.

2.01.12 Other comprehensive income


BFRS: As per BAS 1, Other Comprehensive Income (OCI) is a component of financial statements or
the elements of OCI are to be included in a single Profit and Loss Account.

Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which is applicable
for all the banks operate in Bangladesh. The templates of financial statements issued by Bangladesh Bank
do not include Other Comprehensive Income nor the elements of Other Comprehensive Income allowed
to be included in a single Profit and Loss Account. As such the Bank does not prepare the other Profit
and Loss Account. However, elements of OCI, if any, are shown in the statements of changes in equity.

2.01.13 Disclosure of appropriation of profit


BFRSs: There is no requirement to show appropriation of profit in the face of Profit and Loss Account.
Bangladesh Bank: As per BRPD circular 14 dated 25 June 2003, an appropriation of profit should be
disclosed on the face of Profit and Loss Account.

2.01.14 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.

Bangladesh Bank: As per BRPD 14, cash flow statement has been guided by the Bangladesh Bank
which is the mixture of direct and indirect method.

2.01.15 Recovery of written off loans:


BFRSs: As per BAS 1, an entity shall not offset assets and liabilities or income or expenses, unless
required or permitted by a BFRS. Again recovery of written off loans should be charged to Profit and
Loss Account as per BAS 18.
Bangladesh Bank: As per BRPD circular no.14, dated 23 September 2012 recoveries of amount
previously written off should be adjusted with the specific provision for loans and advances.

2.02 Basis of Measurement


The financial statements of the bank have been prepared on the historical cost basis except for the
following material items:
a) Government Treasury Bills and Bonds designated as 'Held for Trading (HFT)' at present value
using mark to market concept with gain crediting to revaluation reserve which is shown in note
6.01.03.02
b) Government Treasury Bills and Bonds designated as 'Held to Maturity (HTM)' and re-valued
Government Treasury Bonds at present value using amortization concept as shown in note
6.01.03.01

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c) Investment in shares of listed companies are recognized at market value as per Bangladesh Bank
Letter No. DOS(SR)1153/161/2013-140 dated 09 April 2013.
d) Land and Buildings is recognised at the time of acquisition and subsequently re-valued at fair
value as per BAS 16 (Property, Plant and Equipment). Last revaluation was made in 2011.
2.03 Basis of Consolidation
The consolidated financial statements include the financial statements of Janata Bank Limited and its
three subsidiaries, made up to the end of the financial year. The consolidated financial statements have
been prepared in accordance with Bangladesh Financial Reporting Standard (BFRS)-10 'Consolidated
Financial Statements'. These consolidated financial statements are prepared to a common financial year
ended 31 December 2018.

Subsidiaries
Subsidiaries are entities 100% owned and controlled by the group. The financial statements of
subsidiaries are included in the 'Consolidated Financial Statements'.
Transactions Eliminated on Consolidation
Intra-group balances and transactions and any unrealised income and expenses arising from intra-group
transactions are eliminated in preparing the Consolidated Balance Sheet. Unrealised gains arising from
transactions with equity accounted investors are eliminated against the investment to the extent of the
group's interest in the investors. Unrealised losses are eliminated in the same way as unrealised gains,
but only to the extent there is no evidence of impairment.

2.04 Functional and Presentation Currency


These consolidated financial statements of the group and the financial statements of the bank are
presented in Taka (BDT) which is the Bank's functional currency. Except as otherwise indicated,
financial information has been rounded off to the nearest BDT.

2.05 Use of Estimates and Judgments


The preparation of the consolidated financial statements of the group and the financial statements of the
bank in conformity with Bangladesh Bank circulars and BFRSs requires management to make
judgments, estimates and assumptions that affect the application of accounting policies and the reported
amount of assets, liabilities, income and expenses. Actual result may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting
estimates are recognised in the period in which the estimate is revised and in any future period affected.
The most significant areas of estimation, uncertainty and critical judgments in applying accounting
policies that have most significant effect on the amounts recognised in the financial statements of the
group and the bank are as follows:

2.05.01 Going Concern


The Board of Directors have made an assessment of the bank’s ability to continue as a going concern
and are satisfied that it has the resources to continue in the business for the foreseeable future.
Furthermore, Board is not aware of any material uncertainties that may cast significant doubt upon the
bank’s ability to continue as a going concern and they do not intend either to liquidate or to cease
operations of the bank. Therefore, the Financial Statements continues to be prepared on going concern
basis.

2.05.02 Impairment Losses on Loans and Advances


The group and the bank review their individually significant loans and advances at each reporting date
to assess whether an impairment loss should be recorded in the Profit and Loss Account. In particular,
management’s judgment is required in the estimation of the amount and timing of future cash flows when
determining the impairment loss. These estimates are based on assumptions about a number of factors
and actual results may differ, resulting in future changes to the impairment allowance made. Loans and
advances that have been assessed individually and found to be impaired to the extent of provision made
in this year and all individually insignificant loans and advances are then assessed collectively, by
categorising them into groups of assets with similar risk characteristics, to determine whether a provision
should be made due to incurred loss events for which there is objective evidence, but the effects of which
are not yet evident. The collective assessment takes account of data from the loan portfolio (such as
levels of arrears, credit utilisation, loan-to-collateral ratios etc.) and judgement on the effect of

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concentrations of risks and economic data (including levels of unemployment, inflation, interest rates,
exchange rates, sovereign rating etc.). Calculations are shown in note no. 7.12
2.05.03 Impairment of Available for Sale Investments

The group and the bank review their debt securities classified as available for sale investments at each
reporting date to assess whether they are impaired. This requires similar judgments as applied on the
individual assessment of loans and advances. The group and the bank also record impairment charges on
available for sale equity investments when there has been a significant or prolonged decline in the fair
value below their cost.

2.05.04 Deferred Tax Assets

Deferred tax assets are recognised in respect of tax losses to the extent that it is probable that future
taxable profits will be available against which such tax losses can be utilised. Judgement is required to
determine the amount of deferred tax assets that can be recognised, based upon the likely timing and
level of future taxable profits, together with the future tax-planning strategies.

2.05.05 Fair Value of Property, Plant and Equipment


The land and buildings of the group and the bank are reflected at fair value. The group engaged
independent valuation specialist to determine fair value of land and building in the year 2011. When
current market prices of similar assets are available, such evidence is considered in estimating fair values
of these assets.

2.05.06 Useful Life-time of the Property, Plant and Equipment


The group and the bank review the residual values, useful lives and methods of depreciation of property,
plant and equipment at each reporting date. Judgment of the management is exercised in the estimation
of these values, rates, methods and hence they are subject to uncertainty.

2.05.07 Commitments and Contingencies

All discernible risks are accounted for in determining the amount of all known liabilities. Contingent
liabilities are possible obligations whose existence will be confirmed only by uncertain future events or
present obligations where the transfer of economic benefit is not probable or cannot be reliably measured.
Contingent liabilities are not recognised in the Balance Sheet but are disclosed unless they are remote.

2.06 Changes in Accounting Estimate and Errors

The effect of a change in an accounting estimate recognised prospectively by including it in profit or loss
as follows:

(a) the period of the change, if the change affects that period only; or
(b) the period of the change and future periods, if the change affects both.

To the extent that a change in an accounting estimate gives rise to changes in assets and liabilities, or
relates to an item of equity, it shall be recognised by adjusting the carrying amount of the related asset,
liability or equity item in the period of the change.

Material prior period errors shall be retrospectively corrected in the first financial statements authorised
for issue after their discovery by:

(a) restating the comparative amounts for the prior period(s) presented in which the error occurred; or
(b) if the error occurred before the earliest prior period presented, restating the opening balances of assets,
liabilities and equity for the earliest prior period presented.

The most significant effect on the amount recognized in the financial statements are described in the
notes no. 21.00

2.07 Books of Accounts


The company maintains its books of accounts for main business in electronic form through soft
automation. Further updating of the system is under process.

24
2.08 Foreign Currency
Foreign Currency Transaction
Foreign currency transactions are translated as per Bangladesh Accounting Standards BAS-21: 'The
Effects of Changes in Foreign Exchange Rates'. Transactions in foreign currencies are translated into the
respective functional currency of the operation at the spot exchange rate at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated
into the functional currency at the spot exchange rate at that date. The foreign currency gain or loss on
monetary items is the difference between amortised cost in the functional currency at the beginning of
the period, adjusted for effective interest and payments during the period, and the amortised cost in
foreign currency translated at the spot exchange rate at the end of the period. Non-monetary assets and
liabilities denominated in foreign currencies that are measured at fair value are retranslated into the
functional currency at the spot exchange rate at the date that the fair value was determined. Foreign
currency differences arising on retranslation are recognised in profit or loss. Non-monetary assets and
liabilities that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate at the date of the transaction.

Foreign Operation

The assets & liabilities of foreign operations are translated to Bangladeshi Taka at exchange rate
prevailing at the balance sheet date. The income & expenses of foreign operations are translated at
average rate of exchange for the year. Foreign currency differences are recognised and presented in the
foreign currency translation reserve in equity. When, a foreign operation is disposed of such that control,
the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit
or loss as part of the gain or loss on disposal. When the group disposes of only part of its interest in a
subsidiary that includes a foreign operation while retaining control, the relevant proportion of the
cumulative amount is reactivated to non-controlling interest.

2.09 Statement of Cash Flows


Statement of cash flows has been prepared in accordance with Bangladesh Accounting Standards BAS-
7: ' Statement of Cash Flows' and under the guideline of Bangladesh Bank BRPD circular No.14, dated
25 June 2003 issued by the Banking Regulation & Policy Department of Bangladesh Bank. The
Statement shows the structure of changes in cash and cash equivalents during the financial year.

2.10 Statement of Changes in Equity


The statement of changes in equity reflects information about increase or decrease in net assets or wealth.
Statement of changes in equity has been prepared in accordance with Bangladesh Accounting Standards
BAS-1: 'Presentation of Financial Statements' and relevant guidelines of Bangladesh Bank.

2.11 Liquidity Statement (Asset and Liability Maturity Analysis)


The liquidity statement has been prepared in accordance with remaining maturity grouping of Assets and
Liabilities as of the close of the year as per following basis; which are shown in liquidity statement.
a) Balance with other banks and financial institutions, money at call and short notice etc. on the basis of
their maturity term;
b) Investments on the basis of their residual maturity term;
c) Loans and advances on the basis of previous practice and experience;
d) Fixed assets on the basis of their useful lives;
e) Other assets on the basis of their adjustment;
f) Borrowings from other banks and financial institutions, as per their maturity/repayment term;
g) Deposits and other accounts on the basis of their maturity term and behavioural past trend;
h) Other long term liability on the basis of their maturity term;
i) Provisions and other liabilities on the basis of their settlement;

2.12 Assets and the Basis of their Valuation


The accounting policy set out below have been applied consistently to all periods presented in this
Consolidated Balance Sheet and those of the bank and have been applied consistently by the bank.

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2.12.01 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.

2.12.02 Investments

All investments are initially recognised at cost including acquisition charges associated with the
investment. Premiums are amortised and discount accredited, using the effective or historical yield
method. Accounting treatment of government treasury bills and bonds (categorised as HFT or/and
HTM) is made following DOS circular letter no. 5, dated 26 May 2008 and amended as on 28 January
2009 issued by Department of Offsite Supervision of Bangladesh Bank as shown in note no.6.01.03.

a) Held to Maturity (HTM)


Investments which are intended to be held to maturity are classified as 'Held to Maturity'. These are
measured at amortised cost at each year end by taking into account any discount or premium in
acquisition. Any increase or decrease in value of such investments is booked to equity.

b) Held for Trading (HFT)


Investment primarily held for selling or trading is classified in this category. After initial recognition,
investments are marked to market weekly.

c) REPO and Reverse REPO


Since 1 September 2010 transactions of REPO, reverse REPO are recorded based on DOS circular
No. 6, dated 15 July 2010 and amended up to DOS circular No. 3, dated 30 January 2012 issued by
Department of Offsite Supervision of Bangladesh Bank. In case of REPO of both coupon and non-
coupon bearing (Treasury bill) security, JBL adjusted the Revaluation Reserve Account for HFT
securities and stopped the weekly revaluation (if the revaluation date falls within the REPO period)
of the same security.

d) Investment in Unquoted Securities


Investment in unlisted securities is reported at cost under cost method. Adjustment is given for any
shortage of book value over cost for determining the carrying amount of investment in unlisted
securities. During this year such adjustment was not required.

e) Derivative Investments
Derivatives are financial instruments that derive their value in response to changes in interest rates,
financial instrument prices, commodity prices, foreign exchange rates, credit risk and indices.
Derivatives are categorized as trading unless they are designated as hedging instruments.

All derivatives are initially recognized and subsequently measured at fair value, with all revaluation
gains recognized in the Profit and Loss Account (except where cash flow or net investment hedging
has been achieved, in which case the effective portion of changes in fair value is recognized within
other comprehensive income).

The bank has no investments in any derivative instruments.

26
f) Value of Investment has been shown as under:

Measurement
Initial
Investment Class After Initial Recording of Changes
Recognition
Recognition
Loss to Profit and Loss Account, gain
Govt. T-
Cost Fair value to revaluation reserve is shown in note
bills/bonds(HFT)
no.6.01.03.02
Increase or decrease in value to equity
Govt. T-
Cost Amortised cost impact is shown in note no.
bills/bonds(HTM)
6.01.03.01
Increase or decrease in value to Profit
Debenture/Bond Cost Amortised cost and Loss Account impact is shown in
note. 6.02
Loss to Profit and Loss Account, gain
Investment in listed
Cost Fair value to revaluation reserve impact is shown
securities
in note no.6.02.02
Prize bond Cost Cost None

g) Investments in Subsidiary
Investment in subsidiaries is accounted for under the cost method of accounting in the bank’s financial
statements in accordance with the Bangladesh Financial Reporting Standards (BFRS)-10
consolidated and separate financial statements. Accordingly, investments in subsidiaries are stated in
the bank’s balance sheet at cost, less impairment losses if any.
h) Statutory and Non-Statutory Investment
Statutory Investments

Amount which is invested for maintaining statutory liquidity ratio according to Monetary Policy
Department (MPD) circular no. 02, dated 10 December 2013 and DOS circular no. 01, dated 19
January 2014 of Bangladesh Bank is treated as statutory investment, these includes Treasury bill,
Treasury bond, other govt. securities etc. Details of statutory investments have been given in note no.
6.01 and 6.03
Non-statutory Investments

All investment except statutory investment is treated as non-statutory investment such as debentures,
corporate bond, ordinary shares (quoted and unquoted), preference share etc. Details of non-statutory
investments have been given in note no. 6.02 and 6.03

2.12.03 Loans, Advances and Provisions


Loans and advances are stated at gross amount. General provisions on unclassified loans and Off-Balance
Sheet items, specific provisions for classified loans and interest suspense account thereon are shown
under other liabilities. Provision is made on the basis of quarter end against classified loans and advances
reviewed by the management and instruction contained in 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. 02, dated 16 January 2014, BRPD circular no. 16, dated 18 November 2014, BRPD circular
no. 08, dated 02 August 2016 and BRPD circular no. 15, dated 27 September2018.Year ending provision
status is shown in note no. 7.14 and 13.6
a) Interest on Loans and Advances

Interest is calculated on a daily product basis but charged and accounted for on accrual basis. Interest
is calculated on unclassified loans and advances and recognized as income during the year. Interest
on classified loans and advances is charged and kept in suspense account as per Bangladesh Bank
instructions and such interest is not accounted for as income until realised from borrowers. Interest is
not charged on bad and loss loans as per guidelines of Bangladesh Bank. Interest on restructured loan
(according to BRPD circular no. 04, dated 29 January 2016) and rescheduled loan is not accounted
for as income until realisation from borrower.

27
b) Provision for Loans and Advances
Provision for loans and advances are made on quarter basis as well as year-end review by management
following instructions contained in BRPD circulars issued by Bangladesh Bank. General Provision
on unclassified loans and advances and specific provision on classified loans & advances are given
below:

c) Rate of Provision:

Consumer Financing Loan


Short
Other Housi Loan to All
Term SME
Particulars Than ng for BHs/ Other
Agri. Finance
HF & Finan Profes MBs/S Credit
credit
LP ace sional Ds
Standard 1% 5% 2% 2% 0.25% 2% 1%
Unclassified
SMA 1% 5% 2% 2% 0.25% 2% 1%
SS 5% 20% 20% 20% 20% 20% 20%
Classified DF 5% 50% 50% 50% 50% 50% 50%
BL 100% 100% 100% 100% 100% 100% 100%

In addition, provision for loan and advances on United Arab Emirates (U.A.E) branches are made in
accordance with U.A.E. Central Bank rules and regulations. For restructuring loan, 1% additional
provision has been made as per circular no-04 dated 29 January 2015. Though there is no internal
policy of the bank for keeping provisions against Good Borrowers, an amount of BDT. 2.00 Crore
has been kept aside for future settlement for any claim of Good Borrowers against BRPD Circular
no-06 Dated 19 March 2015.

d) Presentation of Loans and Advances


Loans and advances are shown at gross amount as assets while interest suspense and loan loss
provision against classified advances are shown as liabilities in the Balance Sheet.

e) Write off Loans and Advances


Loans and advances/investments are written off as per guidelines of Bangladesh Bank. These written
off loan however will not undermine/affect the claim amount against the borrower. Detailed
memorandum records for all such written off accounts are meticulously maintained under BRPD
circular no. 02, dated 13 January 2003 and BRPD circular no. 13, dated 07 November 2013 and
followed up.

f) Securities Against Loan

Project loan: Land and building are taken as security in the form of mortgage and plant & machinery
are taken in the form of hypothecation.

Working capital and trading loan: Goods are taken as security in the form of pledge and also goods
are taken as security in the form of hypothecation along with land and building as mortgage (value
not less than 1.50 times covering the loan amount) in the form of collateral security.

House building loan: Land and building are taken as security in the form of mortgage.

Overdraft: FDRs are taken in lien. The balance in DPS/JBSPS/SDPS/WEDB A/C’s is taken in “lien”.

Public sector loan: In most cases Govt. Guarantee is taken and no security is taken for government
loan and crops loans in agriculture sector.

g) Counter Party credit rating of the concerned borrowers are done from time to time and 448 No’s
parties involving BDT18,486.82 crore have been rated as such during the year.

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2.12.04 Property, Plant and Equipment

A. Recognition
(a) Fixed assets are stated at cost less accumulated depreciation as per Bangladesh Accounting Standards
BAS-16:
(b) 'Property, Plant and Equipment'. Acquisition cost of an asset comprises of the purchase price and any
directly attributable cost of bringing the asset to working condition for its intended use.
(c) Land & building is recognized at cost at the time of acquisition.

I. The cost means in accordance with the specific requirements of the BFRS, the cost is the amount of
cash or cash equivalents paid of the other consideration given to acquire an asset at the time of its
acquisition or construction or, where applicable, the amount attributed to that asset initially
recognized.
11. The cost of an item of property, plant and equipment is recognized as an asset if it is probable that
future economic benefits associated with the item will flow to the entity and the cost of the item can
be measured reliably.
B. Depreciation of Fixed Assets:
Depreciation is charged at the following rates on all fixed assets on the basis of estimated useful lives
as determined by fixed asset policy of the bank.
Depreciation Policy:
i) In all cases depreciation is calculated on the straight line method. From the beginning month of the
assets acquisition, depreciation is proportionately charged at the applicable rates on purchased assets in
the first half of that month. Otherwise, depreciation will be proportionately charged from the beginning
of the following month of acquisition. While assets are sold or disposed in the first half of the month,
no depreciation will be charged for that month. But depreciation will be charged for the month when
the assets are disposed in the second half of the month.
ii) No Depreciation charged on land and land developments.
iii) Methods, Useful life and Rates of Depreciation of fixed assets including intangible assets are given
below.

Depreciation Policy
Category of fixed assets Useful Life
Method of Dep. Rate of dep.
(Yrs)
Land - - Nil
Buildings Straight Line 40 2.50%
Machineries and equipment
i) Vault & Strong Room Straight Line 20 5%
ii) Lift Straight Line 20 5%
iii) Generator Straight Line 5 20%
iv) Air cooler Straight Line 5 20%
v) Fax Machine Straight Line 5 20%
vi) Photocopy Machine Straight Line 5 20%
vii) CCTV Straight Line 5 20%
viii) Camera Straight Line 5 20%
ix) Note Counting Machine Straight Line 5 20%
x) Fire Extinguisher & Arms Straight Line 5 20%
xi) Gun, Bullet Straight Line 10 10%
xii) Electric Appliances Straight Line 5 20%
xiii) Other items relevant to Machine &
Straight Line 5 20%
Equipment
Furniture and fixtures Straight Line 10 10%

29
Motor Vehicles Straight Line 5 20%
Computers Straight Line 5 20%
(a) Hardware Straight Line 5 20%
(b) Software (Intangible Assets) Straight Line 5 20%

C. Amortization of Intangible Assets:

As per BAS-38, an intangible asset is an identifiable non-monetary asset without physical substance.
Amortization of intangible assets refers to the expensing of the cost of the intangible assets of the bank
over the total lifetime of those assets.

Bank management also follows a policy for amortization of intangible assets considering the durability
and useful lives of items. These intangible assets are booked under the head "Fixed Assets-Intangible
Assets" and amortized over their estimated useful lives by charging under the broad head "Depreciation-
Amortization of Intangible Assets". Yearly amortized amount is charged in Profit & Loss Account.
D. Recognition of Profit/Loss in case of disposal of Assets:

When the assets are sold, closed down or scrapped, the difference between the net proceeds and the net
carrying amount of the assets is recognized as a gain or loss in other operating income or loss in other
operating expenses. The cost and accumulated depreciation are eliminated when the disposal of assets
from the fixed assets schedule and gain or loss on such disposal assets is reflected in the Profit and Loss
Account.

An intangible asset should be derecognized (i.e. eliminated from the balance sheet): (i) on disposal; or
(ii) when no future economic benefits are expected from its use or disposal. Gains or losses arising are
determined as the difference between: (i) the net disposal proceeds; and (ii) the carrying amount of the
asset. Gains or losses are recognized as income or expense in the period in which the retirement or
disposal occurs.

E. Determination of Useful Life & Revaluation of Fixed Assets:

After recognition as an asset, an item of property, plant and equipment whose fair value can be measured
reliably shall be carried at a revalued amount, being its fair value at the date of the revaluation less any
subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluation shall
be made with sufficient regularity to ensure that the carrying amount does not differ materiality from that
which would be determined using fair value at the end of the reporting period as per BAS-16.

Useful lives and method of depreciation on fixed assets are reviewed periodically. If useful lives of assets
do not differ significantly as these were previously estimated, revaluation of assets does not consider. In
case of long time, Useful assets may be revalued as per Bangladesh Bank guideline BRPD-10 with the
satisfaction of the external auditor of the bank.

At the time of revaluation of assets, the revalued amount of assets has been transferred to Asset
Revaluation Reserve. The revaluation reserve included in equity in respect of an item of property, plant
and equipment would be transferred directly to retained earnings when the asset is derecognized. This
would involve transferring the whole of the reserve when the asset is retired or disposed of. However,
some of the reserve would be transferred as the asset is used by an entity. In such a case, the amount of
the reserve transferred would be the difference between depreciation based on the revalued carrying
amount of the asset and depreciation based on the asset’s original cost. Transfers from revaluation reserve
to retained earnings are not made through profit or loss as per Para 41 under BAS-16.

F. Impairment of Assets:

The policy for all assets or cash-generating units for the purpose of assessing such assets for impairment
is as follows:

The bank assesses at the end of each reporting period or more frequently if events or changes in
circumstances indicate that the carrying value of an asset may be impaired, whether there is any
indication that an asset may be impaired. If any such indication exits, or when an annual impairment
testing for an asset is required, the bank makes an estimate of the asset’s recoverable amount. When the

30
carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-
generating unit is considered as impaired and is written down to its recoverable amount by debiting to
profit & loss account according to BAS-36.

Fixed assets are reviewed for impairment whenever events or charges in circumstances indicate that the
carrying amount of an asset may be impaired.

2.12.05 Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the
arrangement at the inception date. The arrangement is assessed for whether fulfilment of the arrangement
is dependent on the use of a specific asset or the arrangement conveys a right to use the asset or assets,
even if that right is not explicitly specified in an arrangement. However, the bank has no assets in the
form of leases.

2.12.05.01 Bank as a Lessee

(a) Operating Lease

Leases in which a significant portion of the risks and rewards of ownership are retained by
another party, the leases are classified as operating leases. Payments, including pre-payments,
made under operating leases (net of any incentives received from the lessor) are charged to Profit
and Loss Account on a straight-line basis over the period of the lease.

(b) Finance Lease

Leases of assets where the group has substantially undertakes all the risks and rewards of
ownership are classified as finance leases. Finance leases are recognised at the lease’s
commencement at the lower of the fair value of the leased property and the present value of the
minimum lease payments. Each lease payment is allocated between the liability and finance
charges so as to achieve a constant rate on the finance balance outstanding. The corresponding
rental obligations, net of finance charges, are included in current and non- current borrowings.
No assets have been acquired by the bank as a finance lease.
2.12.05.02 Bank as a Lessor

Leases where the bank does not transfer substantially all of the risk and benefits of ownership of the
asset are classified as operating leases. Initial direct costs incurred in negotiating operating leases are
added to the carrying amount of the leased asset and recognised over the lease term on
the same basis as rental income. Contingent rents are recognised as revenue in the period in which
they are earned. No assets have been given by the bank as a lease.

2.12.06 Intangibles Assets

The bank’s intangible assets include the value of computer software.

An intangible asset is recognised only when its cost can be measured reliably and it is probable that the
expected future economic benefits that are attributable to it will flow to the bank.
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible
assets acquired in a business combination is their fair value as at the date of acquisition. Following initial
recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated
impairment losses.

The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with
finite lives are amortised over the useful economic life. The amortization period and the amortization
method for an intangible asset with a finite useful life are reviewed at least at each financial year end.
Changes in the expected useful life or the expected pattern of consumption of future economic benefits
embodied in the asset are accounted for by changing the amortization period or method, as appropriate,
and they are treated as changes in accounting estimates. The amortized expenses on intangible assets
with finite lives are presented as a separate line item in the Profit and Loss Account.

Amortization is calculated using the straight–line method to write down the cost of intangible assets to
their residual values over their estimated useful lives as follows:

31
Category of intangible assets Useful life
Computer software 5 years

2.12.07 Non-current Assets Held for Sale and Disposal Groups

Non-current assets and disposal groups classified as held for sale are measured at the lower of their
carrying amount and fair value less costs to sell. Non-current assets and disposal groups are classified as
held for sale if their carrying amounts will be recovered principally through a sale transaction rather than
through continuing use. This condition is regarded as met only when the sale is highly probable and the
asset or disposal group is available for immediate sale in its present condition, management has
committed to the sale, and the sale is expected to have been completed within one year from the date of
classification. In the consolidated Profit and Loss Account of the reporting period, and of the comparable
period of the previous year, income and expenses from discontinued operations are reported separately
from income and expenses from continuing operations, down to the level of profit after taxes, even when
the bank retains a non-controlling interest in the subsidiary after the sale. The resulting profit or loss
(after taxes) is reported separately in the Profit and Loss Account. Property, plant and equipment and
intangible assets once classified as held for sale are not depreciated or amortised. The group has no such
asset which are held for sale and management have not decided to discontinue any operation.

2.12.08 Other Assets

Other assets include all other financial assets, fees, unrealised income receivable, advance for
expenditure, stocks of stationery and stamp. Details are shown in note no. 9. Receivables are recognised
when there is a contractual right to receive cash or another financial asset from another entity.

2.12.09 Non-banking Assets

Non-banking assets are acquired on account of the failure of a borrower to repay the loan in time after
receiving the decree from the court regarding the right and title of the mortgage property. There are no
assets acquired in exchange for loan during the period of financial statements.

2.12.10 Impairment of Assets

The carrying amount of assets is reviewed at as and when consider necessary to determine whether there
is any indication of impairment of any asset or group of assets. If any such indication exists, the
recoverable amount of such assets is estimated and impairment losses are recognised immediately in the
financial statements. The resulting impairment loss is taken to the Profit and Loss Account except for
impairment loss on revalued assets, which is adjusted against related revaluation surplus to the extent
that the impairment loss does not exceed the surplus on revaluation of that asset.

2.13 Liabilities and Provision

2.13.01 Borrowings from Other Banks, Financial Institutions and Agents

Borrowings from other banks, financial institutions and agents include borrowing from Bangladesh Bank
and International Development Association (IDA) credit for 'Enterprise Growth and Bank Modernisation
Project (EGBMP)'. These items are brought to financial statements at the gross value of the outstanding
balance. Details are shown in note no. 11.

2.13.02 Deposits and Other Accounts

Deposits and other accounts include non-interest-bearing current deposit, interest bearing on demand and
short-term deposits, savings deposits, fixed deposits and various scheme deposits. These items are
brought to account at the gross value of the outstanding balances as shown in note no. 12.00.

2.13.03 Other Liabilities

Other liabilities comprise items such as provision for loans and advances/investments/other assets,
taxation, superannuation fund, gratuity fund and off balance sheet exposure and also includes interest
payable, interest suspense, accrued expenses etc. Other liabilities are recognised in the balance sheet
according to BAS-37, provision, contingent liabilities and contingent assets, guidelines of Bangladesh
Bank, Income Tax Ordinance, 1984; and internal policy of the bank. Provision and accrued expenses are
recognized in the financial statements when the bank has a legal or constructive obligation as a result of

32
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 on the amount of the obligation. Details are shown in note no. 13

2.13.04 Provision for Taxation

a) Current Tax
Provision for current income tax has been made as per prescribed rate in the Finance Act, 2017 on
the taxable profit as per income tax ordinance 1984, it also complies with BAS-12: 'Income Taxes'.
Taxable profit may differ from profit as reported in the Profit and Loss Account as some income or
expenses that are taxable or deductible in other year or are never taxable or deductible.

Income tax assessed up to 2002 has been paid and final assessment for 2003-2018 is pending in
different stages break up of which is shown in note no. 13.04.01

b) Deferred Tax
Deferred tax is calculated on the taxable/deductible temporary differences between tax base and
carrying value of assets and liabilities as required by Bangladesh Accounting Standards BAS-12:
'Income Taxes'. Deferred tax is not recognised for the following temporary differences:
 on the initial recognition of assets or liabilities in a transaction that is not a business combination
and that affects neither accounting nor taxable profit or loss;
 related to investments in subsidiaries to the extent that it is probable and will not reverse in the
foreseeable future; and
 arising on the initial recognition of goodwill.
Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences
when they reverse, based on the laws that have been enacted or substantively enacted by the reporting
date.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax
liabilities against current tax assets, and they relate to income taxes levied by the same tax authority on
the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and
assets on a net basis or their tax assets and liabilities will be realised simultaneously.

A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences
to the extent that it is probable that future taxable profits will be available against which they can be
utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no
longer probable that the related tax benefit will be realised.

Deferred tax relating to unrealised surplus on revaluation of held to maturity (HTM) securities and land
and buildings are recognised directly in revaluation reserve as a part of equity and is subsequently
recognised in Profit and Loss Account on maturity of the security and disposal of land and buildings.
Details of deferred tax calculations for the year are shown in note no. 45.02

2.13.05 Provision for Employee Benefits

The retirement benefits and other employee benefits accrued for the employees of the bank as on
reporting date have been accounted for in accordance with the provisions of Bangladesh Accounting
Standards-19-"Employee Benefit".
a) Retirement Benefits
The bank operates two alternative retirement benefit schemes for its permanent employees, elements
of which are as follows:
1) Contributory Provident Fund (CPF) Scheme
i. Employees’ contribution 10%
ii. Bank’s contribution 10%
iii. This fund is operated by a Trustee Board comprising eleven (11) trustees.
iv. The CPF holders enjoy 13% rate of interest on the deposit of own & bank contribution in
CPF account.

33
v. Gratuity: Employees bearing contributory provident fund facilities are entitled gratuity for
2 months last basic pay drawn for each completed year of service subject to completion of
minimum 5 years of service.

2) General Pension Fund Scheme


i. Superannuation Fund
The bank operates Pension Scheme. The bank is paying 40% of basic salary of each
employee in each month w.e.f. 2004 to 30 June 2009 to the Superannuation Fund for
payment of pension to the retiring employees. The paying rate has been reduced to 25% of
basic salary of each employee in each month from 1 July 2009. Again the rate of
contribution to Superannuation Fund has been increased to 40% with effect from 1 October
2012 as per our bank Instruction Circular No.402/12, dated 20 September 2016.

ii. General Provident Fund (GPF)


Employees opted for pension is also contributing 5%-25% as per their desire to GPF which
is also operated by the same Trustee Board as CPF. The bank does not contribute
any amount against the employees to GPF. The employees also enjoy 13% rate of interest
on the deposit of GPF amount, as per our bank Instruction Circular No.452/13, dated 28
April 2013.

iii. Pension and Gratuity Benefit


Pension and Gratuity benefit payable as at 31 December 2018 has been provided in the
books of accounts and presented under other liabilities.

b) Other Employee Benefits

1) Leave Encashment
The Officer/Staff who has opted for Pension and General Provident Fund, will be entitled to
leave encashment facilities up to18 (eighteen) months at the time of retirement as per letter No.
07.00.0000.171.13.006.15-81 dated 14 October2016 of Finance Division, Ministry of Finance,
and Government of Bangladesh. But if anybody has enjoyed leave encashment facilities before
retirement, he will be provided with the rest amount after deduction of the amount enjoyed
earlier, as per letter No. MF/B & 1/Banking/2/1/80/101 dated 31 May 1980 of previous Banking
& Investment Division, Ministry of Finance, and Government of Bangladesh. The leave
encashment benefit is paid to the incumbent debiting 'Expenditure A/C Leave Encashment Code
No.-1217'.

2) Death Relief Grant Scheme


The bank operates a death relief scheme since 1 January 1991, which replaced the previous
group insurance scheme. The scheme is applicable to all employees of the bank and payments
out of this fund are made to the successors of the employees on their death as per our bank
Instruction Circular No.669/16, dated 20 March 2016.

3) Benevolent Fund
Benevolent fund was initiated in 1986 and is funded by the monthly subscription of
executives/officer/staff, sale proceeds of old newspapers, income from investment and grant
from bank’s operating profit. Expenditures from these funds are scholarship, awards to the
children of employees for securing good result in the public examination and university levels,
marriage assistance, retirement benefit and death benefit paid to family members when any
employee expires.

2.13.06 Provision for Other Assets

As per Bangladesh Bank, BRPD circular no.14, dated 25 June 2001, the classification and provisioning
on other assets have been made and required provisions have been kept considering their recoverability
which is shown in note no. 9.07 & 13.10

34
2.13.07 Provision for Nostro Accounts
According to the guideline of Foreign Exchange Policy Department of Bangladesh Bank, Circular No.
FEOD (FEMO)/01/2005-677, dated 13 September 2005, bank has made adequate provision in this year
regarding the un-reconciled debit balance in Nostro Account as on the date of Balance Sheet which is
shown in note no. 13.12.01

2.13.08 Provision for Off-Balance Sheet Exposures

In compliance with Bangladesh Bank guidelines, Off-Balance Sheet items have been disclosed under
contingent liabilities. As per BRPD Circular No.14, dated23 September 2012, the bank is required to
maintain provision @ 1% against Off-Balance Sheet items which is shown in note no. 13.07

2.14 Capital and Shareholders’ Equity

2.14.01 Capital Management

The bank has a capital management process for measuring, deploying and monitoring its available capital
and assessing its adequacy. This capital management process aims to achieve major objectives, i,e,
exceed regulatory thresholds and meet long-term internal capital targets, maintain strong credit rating,
manage capital levels commensurate with the risk profile of the bank and provide the banks shareholder
with acceptable returns.

Capital is managed in accordance with the board approved capital management planning from time to
time. Senior management develops the capital strategy and overseas the capital management planning of
the bank. The bank's department of Accounts and Risk Management Department are playing key role to
implement the bank's capital strategy, capital is managed using both regulatory control measure and
internal matrix. Banks capital management status of the year ending date is shown at note no. 14.00

2.14.02 Paid up Capital

Paid up capital represents total amount of shareholder capital that has been paid in full by the Government
of Bangladesh i.e. ordinary shareholder. In the event of winding-up of the company, Ordinary
shareholder(s) rank after all other shareholders and creditors; and entitled to any residual proceeds of
liquidation.

2.14.03 Statutory Reserve

As per the Banking Companies Act, 1991 (amendment up to2013) under section-24, it is required for the
bank to transfer 20% of its current year's profit before tax to statutory reserve until such reserve along
with share premium balance equals to its paid up capital which has been compiled by the bank.

2.14.04 Dividends on Ordinary Shares

Dividends on ordinary shares are recognised as a liability and deducted from equity when it is approved
by the bank’s shareholders meeting. Dividends for the year that are approved after the reporting date are
disclosed as an event after the reporting date.

2.14.05 Revaluation Reserve

a) Assets Revaluation Reserve


When an asset's carrying amount is increased as a result of a revaluation, the increased amount
should be credited directly to equity under the heading of revaluation surplus/ reserve as per
Bangladesh Accounting Standards BAS-16: 'Property, Plant and Equipment'. The tax effects on
revaluation gain are measured and recognised in the financial statements as per Bangladesh
Accounting Standards BAS-12: 'Income Taxes'. The flow of Assets Revaluation Reserve is shown
in note no-17.00

b) Revaluation Reserve for HTM & HFT


All HTM securities are amortised at the year end and any increase or decrease of such investment is
booked to equity. In case of HFT revaluation, decrease in the present value is recognised in the profit
and loss account and any increase is booked to revaluation reserve account as per Bangladesh Bank

35
DOS circular no. 5, dated 28 January 2009.The flow of Revaluation Reserve for HTM & HFT are
shown in note no-19.00 and 20.00

2.15 Contingent Liabilities and Contingent Assets

A contingent liability is –
Any possible obligation that arises from the past events and the existence of which will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the bank; or any present obligation that arises from past events but is not recognised because:

 it is not probable that an outflow of resources embodying economic benefits will be required to settle
the obligation; or
 the amount of the obligation cannot be measured with sufficient reliability.

Contingent liabilities are not recognised but disclosed in the financial statements unless the possibility
of an outflow of resources embodying economic benefits is reliably estimated.

Contingent assets are not recognised in the financial statements as this may results in the recognition of
income which may never be realised.

2.16 Materiality, Aggregation and Off Setting

Each material item as considered by management significant has been displayed separately in the
financial statements. No amount has been set off unless the bank has legal right to set off the amounts
and intends to settle on net basis. Income and expenses are presented on a net basis only when permitted
by the relevant accounting standards.

The values of any asset or liability as shown in the Balance Sheet are not off-set by way of deduction
from another liability or asset unless there exist a legal right therefore. No such incident existed during
the year.

2.17 Revenue Recognition

The revenue during the year has been recognised following all conditions of revenue recognitions as
prescribed by Bangladesh Bank guideline and Bangladesh Accounting Standards BAS-18: 'Revenue'.

2.17.01 Interest Income

Interest on loans and advances is calculated on daily product basis and accrued at the end of each month,
but charged to customers' accounts on quarterly basis. In terms of the provisions of the Bangladesh
Accounting Standards BAS-18: 'Revenue', the interest income is recognised on accrual basis. Interest on
classified loans and advances including restructured loan (as per BRPD circular no. 04, dated 29 January
2015) and rescheduled have been credited to interest suspense account with actual receipt of interest
there from having credited to income as and when received as per instruction of Bangladesh Bank.

2.17.02 Interest Income from Investments

Income on investments is recognised on accrual basis. Investment income includes discount on treasury
bills, interest on treasury bonds and fixed deposits with other banks. Gain on investments in shares is
also included in investment income. Gain is recognised when it is realised.

2.17.03 Fees and Commission Income

Fees and commission income arises on services provided by the bank and recognised on accrual basis.
Commission charged to customers on letters of credit and letters of guarantee are credited to income at
the time of effecting the transactions.

2.17.04 Dividend Income

Dividend income is recognised when the right to receive income is established. Usually this is the ex-
dividend date for equity securities. Dividends are presented in investment income.

36
2.17.05 Other Operating Income

Other operating income is recognized at the time when it is realized.

2.17.06 Interest Paid on Deposits and Borrowings

Interest paid on borrowings and deposits are calculated on 360 days in a year and recognised on accrual
basis.

2.17.07 Other Operating Expenses

Other operating expenses incurred by the bank are recognised on actual and accrual basis.

2.18 Directors' Responsibility on Financial Statements

The board of directors' takes the responsibility for the preparation and presentation of these financial
statements vide 569th Board Meeting dated 29 April 2019 of the bank.

2.19 Operating Segments

The bank has six reportable segments, as described below, which are the bank's strategic business units.
The strategic business units offer different products and services, and are managed separately based on
the bank's management and internal reporting structure. For each of the strategic business units, the bank
management committee reviews internal management reports on at least a quarterly basis. The following
summary describes the operations in each of the bank's reportable segments. Details have been shown in
note no. 54.

Segment Operation

i. Loans & Advances Includes loans & Advances, other transactions and balances with
corporate customers & retail customers.
ii. Treasury Undertakes the bank's funding and maintenance of SLR, Asset-
liability management through borrowings and placement, currency
swap and investing in liquid assets such as short-term placements
and corporate and government debt securities.
iii. Overseas Branches (UAE) Four (4) overseas branches of Janata Bank Limited are situated in
UAE & operating banking business &money remittance etc. as per
head office instructions and other activities as permitted under the
banking law of UAE.
iv. Janata Exchange Company Janata Exchange Company Srl., Italy, subsidiary company of Janata
Srl, Italy Bank Limited operates its business in Italy. It performs the activities
of money remittance, issue cheques, payment instruments and
traveller's cheque and other activities as permitted under the banking
law of Italy.
v. Janata Exchange Janata Exchange Co, Inc. USA subsidiary company of Janata Bank
Co,Inc.USA Limited operates its business in USA. It performs the activities of
money remittance, issue cheques, payment instruments and
traveller's cheque and other activities as permitted under the banking
law of USA.
vi. Janata Capital and Established to do all kinds of merchant banking activities including
Investments Limited issue management, underwriting, portfolio management and other
transactions.

2.20 Compliance of Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting
Standards (BFRS)

The Institute of Chartered Accountants of Bangladesh (ICAB) is the sole authority for adoption of
Bangladesh Accounting Standards (BASs) and Bangladesh Financial Reporting Standards (BFRSs).
While preparing the financial statements, Janata Bank Limited applied all applicable BAS and BFRS as
adopted by ICAB with some exceptions. Details are given below:

37
Name of the BAS / BFRS BAS/BFRS Status of compliance

Presentation of Financial Statements BAS-1 Applied

Inventories BAS-2 Not Applicable

Statement of Cash Flow BAS-7 Applied

Accounting Policies, Changes in


BAS-8 Applied
Accounting Estimates and Errors

Events after the Reporting Period BAS-10 Applied

Construction Contracts BAS-11 Not Applicable

Income Taxes BAS-12 Applied

Property, Plant and Equipment BAS-16 Applied

Leases BAS-17 Applied

Revenue BAS-18 Applied

Employee Benefits BAS-19 Applied

Accounting for Government Grants and


BAS-20 Not Applicable
Disclosure of Government Assistance
The Effects of Changes in Foreign
BAS-21 Applied
Exchange Rates
Borrowing Costs BAS-23 Applied

Related Party Disclosures BAS-24 Applied

Accounting and Reporting by Retirement


BAS-26 Not Applicable
Benefit Plans

Separate Financial Statements BAS-27 Applied

Investments in Associates & Joint Not Applicable, JBL does not


BAS-28
Ventures have any such relationship

Interests in Joint Ventures BAS-31 Not Applicable


Financial Instruments: Presentation BAS-32 Applied. See note no. 2.01
Earnings Per Share BAS-33 Applied

Interim Financial Reporting BAS-34 Applied

Impairment of Assets BAS-36 Applied

Provisions, Contingent Liabilities and


BAS-37 Applied. See note no. 2.01
Contingent Assets

Intangible Assets BAS-38 Applied

Financial Instruments: Recognition and


BAS-39 Applied. See note no. 2.01
Measurement

Investment Property BAS-40 Not Applicable

Agriculture BAS-41 Not Applicable

First-time Adoption of Bangladesh


BFRS-1 Not Applicable
Financial Reporting Standards

38
Name of the BAS / BFRS BAS/BFRS Status of compliance
Share Based Payment BFRS-2 Not Applicable

Business Combinations BFRS-3 Not Applicable

Insurance Contracts BFRS-4 Not Applicable

Non-current Assets Held for Sale and


BFRS-5 Not Applicable
Discontinued Operations
Exploration for and Evaluation of Mineral
BFRS-6 Not Applicable
Resources
Financial Instruments: Disclosures BFRS-7 Applied. See note no. 2.01

Operating Segments BFRS-8 Applied

Financial Instruments BFRS-9 Applied. See note no. 2.01

Consolidated Financial Statements BFRS-10 Applied

Joint arrangements BFRS- 11 Not Applicable

Disclosure of interest in other entities BFRS- 12 Not Applicable

Fair value measurement BFRS- 13 Applied

Regulatory Deferral Accounts BFRS-14 Not Applicable

2.21 Risk Management


The possibility of losses, financial or otherwise is defined as risk. The risks are inherent in banking
business in the context of recovery of credit, maintaining liquidity market and operational effect. It is the
responsibility of the management to identify, measure and mitigate the risks. The risk management of
the bank covers 6 (six) core risk areas in the banking business and issued necessary guidelines as under
to control and minimise loss: -

(i) Credit risk management


(ii) Foreign exchange risk management
(iii) Assets- Liability risk management
(iv) Money laundering prevention risk management
(v) Internal control and compliance risk management
(vi) Information and communication technology risk management.

Janata Bank Limited has developed separate guidelines for each of above risk oriented areas to manage
its own core risks. Details have been shown in separate report manual report on core risk management in
JBL.

a) Credit Risk Management:

Credit risk is managed through a framework that sets out policies and procedures covering the
measurement and management of credit risk in JBL. All credit exposure limits are approved within a
defined credit approval authority framework. Loans are the largest and most obvious source of credit
risk. Credit risk cannot be fully eliminated; it can be minimized by taking proper management. We have
implemented credit risk management policy to mitigate credit risk for maximizing interest income and
achieving profit target as well. A high powered committee is in place for monthly review, monitoring
and supervision of risks associated with credit activities.

b) Foreign Exchange Risk Management:

Foreign exchange risk is the risk that a mismatch between the composition of asset and liabilities (in a
particular foreign currency) may have an adverse effect on net cash flow and the value of the banks net
equity due to movements in exchange rate. Foreign exchange risk is measured and monitored by the
Treasury Department. A sound and clear policy for dealing room is stated in the Foreign Exchange Risk

39
Management Guidelines of our bank. Front office, mid office and back office operations, dealing room
limits, dealer’s individual limit are maintained as per the guidelines to minimize the inherent risk in
foreign exchange transactions.

c) Asset-Liability Risk Management:

ALM is a process to manage the composition and pricing of the assets, liabilities and off balance sheet
items and aims to control bank’s exposure to market risks, with the objective of optimizing net income
and net equity value within the overall risk preferences of the bank. It has evolved in response to the
problems of banks dealing in a wide range of diversified assets, liabilities and contingent liabilities in
times of volatile interest rates and more generally a continuously changing economic environment. The
main focus of asset-liability management is to matching of the liabilities and assets in terms of maturity,
cost and yield rates. The maturity mismatches and disproportionate changes in the levels of assets and
liabilities cause the risks. ALCO of our bank are in force to mitigate these types of risks.

d) Money Laundering Risk Management:

JBL treats the money laundering and terror financing issues as a vital part of its core risk management
activities. Bank has formulated its own guidelines for prevention of money laundering approved by the
Board of Directors in line with Anti Money Laundering Law and Bangladesh Bank guidelines. Money
laundering risk is a national issue. KYC and transaction profile as well CTR & STR reporting is being
followed in our bank to minimize money laundering risks.

e) Internal Control and Compliance Risk Management:

It is a process for assuring the achievement of an organization's objectives with operational effectiveness
and efficiency, reliable financial reporting, compliance with laws, regulations and policies. Bank has a
separate ICC Division headed by DMD to formulate and implementation of ICC policy to minimize
internal control risk. The internal control team also reports to the audit committee/the board of directors
at a regular internal.

f) Information and Communication Technology Risk Management:


The rapid development of information and communication technologies (ICTs) has effectively facilitated
reorganizing a bank’s business processes and streamlining the provision of its products and services in
today’s dynamic business environment. ICT provides competitive advantage often brings organizations
numerous benefits including fast business transactions, increasing automation of business processes,
improved customer service and provision of effective decision support in a timely manner. Janata Bank
has adopted sufficient measures to minimize ICT risk. ICT policy guidelines include software security
policy, physical security policy, password policy, anti-virus policy, server security policy, IT assets
administration and management policy, disaster management policy and system audit policy. Effective
implementation of this policy will protect the safety and security of information technology system
including assets and software used in the bank.

2.22 Related Party Disclosures

As per Bangladesh Accounting Standards BAS-24: 'Related Party Disclosures', parties are considered to
be related if one of the parties has the ability to control the other party or exercise significant influence
over the other party in making financial and operating decisions. The company carried out transactions
in the ordinary course of business on an arm’s length basis at commercial rates with its related parties.
Related party disclosures have been given in note no. 57.

2.23 Litigation

The bank is not a party to any lawsuits except those arising in the normal course of business, which were
filed against the default clients for non-performance in loans repayment and against various level of tax
authority regarding some disputed tax issues. The bank, however, provides adequate provisions as per
guidelines of BAS 37 and Bangladesh Bank circulars have been given in note no. 39 to 45.

40
2.24 Written Off

Write off describes a reduction in recognized value. It refers to recognition of the reduced or zero value
of an asset. Generally, it refers to loan for which a return on the loan is now impossible or unlikely. The
item's potential return is thus cancelled and removed from ("Written off") the bank's Balance Sheet.
Recovery against debts written off is credited to provision or revenue considering the previous position
of the loans.

Other assets having no realistic prospect of recovery have been written off against full provision without
reducing the claimed amount of the bank. Notional balances against other assets written off have been
kept to maintain the detailed memorandum records for such accounts/assets.

2.25 Memorandum Items

The bank has maintained separate register to have control over memorandum items such as bills for
collection, stock of travellers’ cheques, savings certificates, wage earners bonds, written off loans and
advances etc. for such transactions where the bank has only a business responsibility and no legal
commitment. However, Bills for Collection is shown under contingent liabilities as per Bangladesh
Bank’s format of reporting.

2.26 Audit Committee Disclosures

As per policy directives as well as in compliance with the BRPD Circular No. 11, dated 27October2013
of Bangladesh Bank, an audit committee of the board of Janata Bank Limited was constituted by the
Board of Directors in its 773rd meeting held on 30 December 2002 and thereafter lastly reconstituted in
the 455th board meeting of Janata Bank Limited held on 28 December 2016. The audit committee
comprises of four members including chairman who are competent and professionally skilled and also
the director of the board. The company secretary acts as a secretary of the audit committee.

During the year 2018, the audit committee of the board conducted 23 (Twenty-Three) meetings in which
the following important issues were reviewed and discussed along with others:

 Reviewed Annual Audit Plan 2018 and Approved Annual Audit Plan for the year 2019 by the Internal
Audit Division.
 Reviewed compliance status of the commercial audit report, comprehensive inspection report conducted
by Bangladesh Bank and statutory audit report and advised the management to ensure full compliance
on quarterly rest.
 Reviewed the recovery status of classified loans as well as write off loan and providing necessary
guidelines to the management to reduce the NPLs;
 Reviewed the reconciliation performance of inter branch transaction accounts on quarterly basis and
advised the management to keep it regular;
 Discussed the internal audit report on different branches and instructed management to take necessary
disciplinary action against fraud forgery committed employees;
 Discussed and reviewed the compliance report of internal audit conducted on difference branches on
quarterly basis;
 Reviewed the annual financial statements and examined whether these are complete and consistent with
applicable accounting and reporting standards (IASs & IFRSs) set by respective governing bodies and
regulatory authorities;
 Reviewed the report submitted by the Department of Bank Inspection-2, Bangladesh Bank on Internal
Control and Compliance policy (ICC Policy);
 Reviewed the special audit and inspection report on irregularities taken place in Janata Exchange
Company Srl. Italy and recommended for board approval for taking necessary disciplinary action against
responsible persons;
 Checked whether the annual financial statements reflect the complete and concrete information and
determine 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;

41
 Reviewed External Auditor appointment criteria and process and made recommendation to the board for
appointment of Grant Thornton Audit and Accounting Limited as statutory auditors of JBL four branches
in UAE for the year 2018;
 Reviewed External Auditor appointment criteria and process and made recommendation to the board for
appointment of Aziz Halim Khair Choudhury Chartered Accountants firms as statutory auditors of the
bank for the year 2018.

2.27 Risk Management Committee Disclosure

A Risk Management Committee, comprising Directors of the Board has been formed in consistence with
Bank Company's Act (Amendment), 2013 and directives of BRPD Circular No.11, dated 27 October 2013
of Bangladesh Bank. Our risk management approach includes minimizing undue concentrations of
exposure, limiting potential losses from stress events and ensuring the continued adequacy of all our
financial resources. The committee is playing a vital role in risk management of the bank. It has a long
term plan to develop risk management culture in the bank.

The risk management committee comprises of 5(five) members including chairman who are competent
and professionally skilled and also the director of the board.

The committee conducted 12 (Twelve) meetings in the year 2018 where the following issues were
attended:
 Stress Testing Reports June 2018 to assess the shock absorbing capacity of the bank;
 Recovery status of Restructured Loan up to September, 2018;
 Up to date information regarding creditable loan accounts;
 Action Plan of the Divisional suits file of the disciplinary department;
 Collateral status against more than 25 crore but less than 50 crore loan;
 Proposed capital plan for 5 years from 2018 to 2022;
 Approval to change the power of 8th Edition of the Delegation of Business Power in the part of
foreign exports and section 9,10,11, & 12 regarding to Foreign Local Documentary Bills Purchase;
 To lessen risk weighted assets through increasing Credit Rating of the customer with a view to
compensate for Capital Shortfall;
2.28 Comparative Information

The accounting policies have been consistently applied by the bank and are consistent with those used in
the previous year. Comparative information is reclassified and rearranged wherever necessary to conform
to the current presentation.

2.29 Reporting Period

These financial statements of the bank and its subsidiaries cover one calendar year from 01 January 2018
to 31 December 2018.

2.30 Approval of Financial Statement

The financial statements are approved by the board of directors on 29 April 2019.

2.31 Earnings per Share

2.31.01 Basic Earnings per Share

Basic earnings per share (EPS) has been computed by dividing the profit after tax by the weighted
average number of ordinary shares outstanding as at 31 December 2018 as per Bangladesh Accounting
Standards (BAS)-33: 'Earnings per Share'.

2.31.02 Diluted Earnings per Share

No diluted earnings per share are required to be calculated for the year as there was no scope for dilution
during the year under review.

2.32 Events after Reporting Period


Events after the reporting period that provide additional information about the company's position at the
Balance Sheet date are reflected in the financial statements in note no. 50 as per Bangladesh Accounting
Standards BAS-10: 'Events after the Reporting Period'.

42
Janata Bank Limited and its Subsidiaries
Consolidated Balance Sheet
as at 31 December 2018

2018 2017
Note
Taka Taka
PROPERTY AND ASSETS
Cash 3.00 44,480,330,961 48,532,967,105
Cash in Hand (including foreign currencies) 4,872,852,083 4,313,115,422
Balance with Bangladesh Bank and its Agent Bank(s)
(including foreign currencies) 39,607,478,878 44,219,851,683

Balance with Other Banks and Financial Institutions 4.00 46,397,318,601 34,719,005,259

In Bangladesh 30,640,687,789 20,174,581,909


Outside Bangladesh 15,756,630,812 14,544,423,350

Money at Call and Short Notice 5.00 3,509,655,555 14,622,355,555


Investments 6.00 169,335,954,997 179,722,383,694
Government 120,195,131,501 146,987,729,573
Others 49,140,823,496 32,734,654,121

Loans and Advances 7.00 536,159,535,768 462,124,880,413


Loans, Cash Credits, Overdrafts etc. 519,483,101,537 444,050,993,501
Bills Purchased and Discounted 16,676,434,231 18,073,886,912

Fixed Assets including Land, Building,


Furniture and Fixtures 8.00 10,330,016,194 10,365,690,341
Other Assets 9.00 57,182,245,413 57,058,689,938
Non-Banking Assets 10.00 - -
TOTAL PROPERTY AND ASSETS 867,395,057,489 807,145,972,305

LIABILITIES AND SHAREHOLDERS' EQUITY


Liabilities
Borrowings from Other Banks, Financial
Institutions and Agents 11.00 17,383,484,357 5,599,023,875
Deposits and Other Accounts 12.00 675,793,526,508 649,527,452,112
Current Accounts and Other Accounts etc. 75,606,369,265 74,071,839,820
Bills Payable 4,295,257,648 4,313,683,986
Savings Bank Deposits 163,436,009,642 151,599,127,081
Fixed Deposits 432,455,889,953 419,542,801,225
Other Liabilities 13.00 119,691,087,745 100,660,005,169
Total Liabilities 812,868,098,610 755,786,481,156
Shareholders' Equity 54,526,958,879 51,359,491,149
Share Capital-Paid-up 14.00 23,140,000,000 19,140,000,000
Statutory Reserve 15.00 11,501,974,363 11,317,079,307
Legal Reserve 16.00 208,352,419 198,613,980
Assets Revaluation Reserve 17.00 6,047,892,354 6,066,181,584
Foreign Currency Translation Reserve 18.00 233,482,825 233,482,825
Revaluation Reserve for HTM 19.00 113,327,801 104,627,214
Revaluation Reserve for HFT 20.00 2,249,156,713 1,383,657,394
Revaluation Reserve for Shares 21.00 3,247,342,938 3,755,911,382
Retained Earnings 22.00 7,785,429,466 9,159,937,463

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 867,395,057,489 807,145,972,305

6
Janata Bank Limited and its Subsidiaries
Consolidated Balance Sheet
as at 31 December 2018

2018 2017
Note
Taka Taka
OFF-BALANCE SHEET EXPOSURES

Contingent Liabilities : 23.00 94,744,224,048 120,881,917,205


Acceptances and Endorsements - -
Letters of Guarantee 15,191,653,036 14,539,249,362
Irrevocable Letters of Credit 73,143,403,479 99,970,797,789
Bills for Collection 6,409,167,533 6,371,870,054
Other Contingent Liabilities - -

Other Commitments :
Documentary Credits and Short Term Trade-Related Transactions - -
Forward Assets Purchased and Forward Deposits 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 94,744,224,048 120,881,917,205

Net Asset Value Per Share (NAVPS) 235.64 268.34

The annexed notes 01 to 59 form an integral part of these financial statements.

__________________________ ____________________
A K M Shariat Ullah FCA ACCA Md. Abdus Salam Azad
Chief Financial Officer CEO & Managing Director

_______________________________ ______________________ ______________________


Masih Malik Chowdhury, FCS FCA Khondker Sabera Islam Luna Shamsuddoha
Director Director Chairman

Signed in terms of our separate report of even date annexed.

Dated: Dhaka Aziz Halim Khair Choudhury


29 April 2019 Chartered Accountants

7
Janata Bank Limited and its Subsidiaries
Consolidated Profit and Loss Account
for the year ended 31 December 2018

2018 2017
Note
Taka Taka
Operating Income
Interest Income 25.00 34,538,912,097 31,200,967,816
Interest Paid on Deposits and Borrowings etc. 26.00 26,973,734,985 27,095,656,917
Net Interest Income 7,565,177,112 4,105,310,899
Investment Income 27.00 11,423,070,992 14,604,611,802
Commission, Exchange and Brokerage 28.00 2,899,859,616 4,953,019,059
Other Operating Income 29.00 2,001,850,573 1,998,974,808
Total Operating Income (A) 23,889,958,293 25,661,916,568

Operating Expenses
Salary and Allowances 30.00 9,740,323,322 10,073,213,888
Rent, Taxes, Insurance, Electricity etc. 31.00 1,161,345,752 1,191,495,610
Legal Expenses 32.00 34,737,077 27,854,976
Postage, Stamp, Telecommunication etc. 33.00 258,687,057 256,995,434
Stationery, Printings, Advertisements etc. 34.00 258,639,456 238,565,313
Chief Executive's Salary and Fees 35.00 18,099,172 16,467,839
Directors' Fees 36.00 5,422,737 5,602,944
Auditors' Fees 37.00 9,260,936 8,773,652
Depreciation, Repair and Maintenance 38.00 992,080,749 849,219,582
Other Operating Expenses 39.00 1,595,549,900 1,465,132,080
Total Operating Expenses (B) 14,074,146,158 14,133,321,318

Profit/(Loss) before Provision & Tax (C) = (A-B) 9,815,812,135 11,528,595,250

Provision for Loans and Advances 40.00 4,543,972,033 4,119,525,949


Provision for Off-balance Sheet Exposures 41.00 (200,000,000) 293,600,000
Provision for Other Assets 42.00 310,000,000 850,000,000
Provision for Employees Benefit 43.00 3,920,000,000 2,081,618,836
Provision for Diminution in Value of Investments 44.00 26,000,000 (240,000,000)
Other Provisions 45.00 332,176,609 124,680,316
Total Provision (D) 8,932,148,642 7,229,425,101
Total Profit/(Loss) before Taxes (E) = (C-D) 883,663,493 4,299,170,149

Provision for Taxation (F) 46.00 702,916,711 1,567,444,284

Current tax 1,055,112,301 1,720,561,952


Deferred tax (352,195,590) (153,117,668)

Net Profit/(Loss) after Taxation (G) = (E-F) 180,746,782 2,731,725,865

Net Profit Attributable To:


Equity Holders of the Bank 180,746,782 2,731,725,865
Non-Controlling Interest - -
180,746,782 2,731,725,865
Net Profit for the Year 180,746,782 2,731,725,865

8
Janata Bank Limited and its Subsidiaries
Consolidated Profit and Loss Account
for the year ended 31 December 2018

2018 2017
Note
Taka Taka
Appropriations

Statutory Reserve 15.00 184,562,560 779,178,611


General Reserve - -
Legal Reserve 16.00 8,919,308 28,690,357
193,481,868 807,868,968

Retained Surplus (12,735,086) 1,923,856,897

Earnings Per Share (EPS) 48.00 0.85 14.27

The annexed notes 01 to 59 form an integral part of these financial statements.

__________________________ ____________________
A K M Shariat Ullah FCA ACCA Md. Abdus Salam Azad
Chief Financial Officer CEO & Managing Director

_______________________________ ______________________ ______________________


Masih Malik Chowdhury, FCS FCA Khondker Sabera Islam Luna Shamsuddoha
Director Director Chairman

Signed in terms of our separate report of even date annexed.

Dated: Dhaka Aziz Halim Khair Choudhury


29 April 2019 Chartered Accountants

9
Janata Bank Limited and its Subsidiaries
Consolidated Statement of Cash Flows
for the year ended 31 December 2018

2018 2017
Note
Taka Taka
A. Cash Flows from Operating Activities
Interest Receipt in Cash 34,464,130,511 32,247,219,058
Interest Payments (25,589,077,076) (28,282,915,155)
Dividend Receipts 515,517,056 622,306,808
Fees and Commission Receipt in Cash 862,595,603 961,758,231
Recoveries of Loans Previously Written off 343,900,000 1,104,400,000
Cash Payments to Employees (9,758,422,494) (10,089,681,727)
Cash Payments to Suppliers (258,639,456) (238,565,313)
Income Tax Paid (1,489,767,891) (1,995,638,228)
Income from Investment 10,568,199,968 14,035,152,201
Receipts from Other Operating Activities 1,985,850,369 1,791,339,986
Payments for Other Operating Activities (3,329,562,228) (3,409,576,535)
Cash Generated from Operating Activities 8,314,724,362 6,745,799,326

Increase/(Decrease) in Operating Assets and Liabilities


(Purchase)/sale of trading securities (2,120,180,827) 517,341,683
Loans and Advances to Customers (74,034,655,355) (56,218,566,428)
Other Assets 1,113,726,223 (2,600,092,854)
Other Liabilities 8,062,983,119 12,042,425,644
Deposits from Other Banks (9,253,597) (93,125,614)
Deposits from Customers 26,271,785,046 7,753,614,963
(40,715,595,391) (38,598,402,606)
Net Cash Flow from Operating Activities (A) (32,400,871,029) (31,852,603,280)
B. Cash Flows from Investing Activities
Proceeds from sale of securities 527,933,710,420 1,948,598,208,121
Payments for purchase of securities (501,041,241,304) (1,885,208,112,290)
(Purchase)/Sales of Bond (Others) (15,118,913,841) (8,490,212,093)
(Purchase)/Sale of Property, Plant and Equipment (671,431,543) (372,340,351)
Net Cash Flow from Investing Activities (B) 11,102,123,732 54,527,543,387

C. Cash Flows From Financing Activities


Received from Issue of Ordinary Shares (Rights Issue) 4,000,000,000 -
Dividends Paid (10,000,000) (10,000,000)
(Paid)/Received from Borrowings 11,784,460,482 (1,833,026,401)
Net Cash Flow from Financing Activities (C) 15,774,460,482 (1,843,026,401)

D. Net Increase/(Decrease) in Cash (A+B+C) (5,524,286,815) 20,831,913,706


E. Net Foreign Exchange Difference 2,037,264,013 3,991,260,828
F. Cash and Cash Equivalents at the Beginning of the Year 97,874,327,919 73,051,153,385
G. Cash and Cash Equivalents at the End of the Year 94,387,305,117 97,874,327,919

Cash and Cash Equivalents at the End of the Year Represents


Cash in Hand (including foreign currencies) 4,872,852,083 4,313,115,422
Balance with Bangladesh Bank and its Agent Bank (including
foreign currencies) 39,607,478,878 44,219,851,683
Balance with Other Banks and Financial Institutions 46,397,318,601 34,719,005,259
Money at Call and Short Notice 3,509,655,555 14,622,355,555
94,387,305,117 97,874,327,919
Net Operating Cash Flow Per Share (NOCFPS) (152.91) (166.42)

The annexed notes 01 to 59 form an integral part of these financial statements.

__________________________ ____________________
A K M Shariat Ullah FCA ACCA Md. Abdus Salam Azad
Chief Financial Officer CEO & Managing Director

_______________________________ ______________________ ______________________


Masih Malik Chowdhury, FCS FCA Khondker Sabera Islam Luna Shamsuddoha
Director Director Chairman

10
Janata Bank Limited and its Subsidiaries
Consolidated Statement of Changes in Equity
for the year ended 31 December 2018

Legal Foreign Surplus/


Assets Revaluation Revaluation Revaluation
Share capital Statutory reserve currency (deficit) in
Particulars revaluation reserve for reserve for reserve on Total
paid-up reserve (UAE translation profit and loss
reserve HTM HFT shares
branches) reserve account
Balance as at 01 January 2018 19,140,000,000 11,317,079,307 198,613,980 6,066,181,584 233,482,825 104,627,214 1,383,657,394 3,755,911,382 9,159,937,463 51,359,491,149
Previous year adjustment - - - - - - - - 43,143,168 43,143,168
Opening balance (Restated) 19,140,000,000 11,317,079,307 198,613,980 6,066,181,584 233,482,825 104,627,214 1,383,657,394 3,755,911,382 9,203,080,631 51,402,634,317
New capital injected by the Government 4,000,000,000 - - - - - - - - 4,000,000,000
Change in rate fluctuation of overseas branches - 332,496 819,131 - - - - - (3,175,566) (2,023,939)
Net profit during the period - - - - - - - - 180,746,782 180,746,782
Transferred from revaluation of investment - - - - - 6,919,297 1,342,233,836 - (1,422,222,563) (73,069,430)
Dividend paid - - - - - - - - (10,000,000) (10,000,000)
Valuation adjustment - - - - - - - - - -
Transferred to statutory reserve during the year - 184,562,560 - - - - - - (184,562,560) -
Transferred to legal reserve during the year - - 8,919,308 - - - - - (8,919,308) -
Transferred from asset revaluation reserve - - - (18,289,230) - - - - 18,289,230 -
Transferred from/(to) deferred tax liability - - - - - 1,781,290 (476,734,517) 56,507,605.00 12,192,820 (406,252,802)
Revaluation gain/(loss) on shares - - - - - - - (565,076,049) - (565,076,049)
Balance as at 31 December 2018 23,140,000,000 11,501,974,363 208,352,419 6,047,892,354 233,482,825 113,327,801 2,249,156,713 3,247,342,938 7,785,429,466 54,526,958,879

Balance as at 31 December 2017 19,140,000,000 11,317,079,307 198,613,980 6,066,181,584 233,482,825 104,627,214 1,383,657,394 3,755,911,382 9,159,937,463 51,359,491,149

The annexed notes 01 to 59 form an integral part of these financial statements.

__________________________ ____________________
A K M Shariat Ullah FCA ACCA Md. Abdus Salam Azad
Chief Financial Officer CEO & Managing Director

_______________________________ ______________________ ______________________


Masih Malik Chowdhury, FCS FCA Khondker Sabera Islam Luna Shamsuddoha
Director Director Chairman

11
Janata Bank Limited
Balance Sheet
as at 31 December 2018

2018 2017
Note
Taka Taka
PROPERTY AND ASSETS
Cash 3.00 44,416,647,445 48,518,470,774
Cash in Hand (including foreign currencies) 4,809,168,567 4,298,619,091
Balance with Bangladesh Bank and its Agent Bank(s)
(including foreign currencies) 39,607,478,878 44,219,851,683

Balance with Other Banks and Financial Institutions 4.00 46,066,295,782 34,441,960,214
In Bangladesh 30,435,687,789 19,919,581,909
Outside Bangladesh 15,630,607,993 14,522,378,305

Money at Call and Short Notice 5.00 3,509,655,555 14,622,355,555


Investments 6.00 166,783,793,160 177,342,150,841
Government 120,195,131,501 146,987,729,573
Others 46,588,661,659 30,354,421,268

Loans and Advances 7.00 533,707,160,206 459,580,051,884


Loans, Cash Credits, Overdrafts etc. 517,030,725,975 441,506,164,972
Bills Purchased and Discounted 16,676,434,231 18,073,886,912
Fixed Assets including Land, Building,
Furniture and Fixtures 8.00 10,277,044,324 10,308,624,745
Other Assets 9.00 61,285,879,507 61,174,793,544
Non-Banking Assets 10.00 - -
TOTAL PROPERTY AND ASSETS 866,046,475,979 805,988,407,557

LIABILITIES AND SHAREHOLDERS' EQUITY


Liabilities
Borrowings from Other Banks, Financial
Institutions and Agents 11.00 17,383,484,357 5,599,023,875

Deposits and Other Accounts 12.00 675,548,450,902 649,440,778,742


Current Accounts and Other Accounts etc. 75,547,526,438 74,079,581,511
Bills Payable 4,295,257,648 4,313,683,986
Savings Bank Deposits 163,436,009,642 151,599,127,081
Fixed Deposits 432,269,657,174 419,448,386,164
Other Liabilities 13.00 118,558,171,849 99,585,270,909
Total Liabilities 811,490,107,108 754,625,073,526
Shareholders' Equity 54,556,368,871 51,363,334,031
Share Capital-Paid-up 14.00 23,140,000,000 19,140,000,000
Statutory Reserve 15.00 11,501,974,363 11,317,079,307
Legal Reserve 16.00 208,352,419 198,613,980
Assets Revaluation Reserve 17.00 6,047,892,354 6,066,181,584
Foreign Currency Translation Reserve 18.00 233,482,825 233,482,825
Revaluation Reserve for HTM 19.00 113,327,801 104,627,214
Revaluation Reserve for HFT 20.00 2,249,156,713 1,383,657,394
Revaluation Reserve for Shares 21.00 3,247,342,938 3,755,911,382
Retained Earnings 22.00 7,814,839,458 9,163,780,345
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 866,046,475,979 805,988,407,557

12
Janata Bank Limited
Balance Sheet
as at 31 December 2018

2018 2017
Note
Taka Taka
OFF-BALANCE SHEET EXPOSURES

Contingent Liabilities 23.00 94,744,224,048 120,881,917,205


Acceptances and Endorsements - -
Letters of Guarantee 15,191,653,036 14,539,249,362
Irrevocable Letters of Credit 73,143,403,479 99,970,797,789
Bills for Collection 6,409,167,533 6,371,870,054
Other Contingent Liabilities - -

Other Commitments
Documentary Credits and Short Term Trade-Related Transactions - -
Forward Assets Purchased and Forward Deposits 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 94,744,224,048 120,881,917,205

Net Asset Value Per Share (NAVPS) 235.77 268.36

The annexed notes 01 to 59 form an integral part of these financial statements.

__________________________ ____________________
A K M Shariat Ullah FCA ACCA Md. Abdus Salam Azad
Chief Financial Officer CEO & Managing Director

_______________________________ ______________________ ______________________


Masih Malik Chowdhury, FCS FCA Khondker Sabera Islam Luna Shamsuddoha
Director Director Chairman

Signed in terms of our separate report of even date annexed.

Dated: Dhaka Aziz Halim Khair Choudhury


29 April 2019 Chartered Accountants

13
Janata Bank Limited
Profit and Loss Account
for the year ended 31 December 2018

2018 2017
Note
Taka Taka
Operating Income
Interest Income 25.00 34,488,658,414 31,145,611,896
Interest Paid on Deposits and Borrowings etc. 26.00 26,972,085,716 27,093,672,662
Net Interest Income 7,516,572,698 4,051,939,234
Investment Income 27.00 11,350,631,814 14,414,821,862
Commission, Exchange and Brokerage 28.00 2,863,390,252 4,910,829,124
Other Operating Income 29.00 2,002,163,919 2,000,706,200
Total Operating Income (A) 23,732,758,683 25,378,296,420

Operating Expenses

Salary and Allowances 30.00 9,662,071,685 10,003,832,785


Rent, Taxes, Insurance, Electricity etc. 31.00 1,156,692,639 1,186,583,912
Legal Expenses 32.00 34,025,231 27,346,213
Postage, Stamp, Telecommunication etc. 33.00 258,353,654 256,649,643
Stationery, Printings, Advertisements etc. 34.00 257,781,858 237,765,433
Chief Executive's Salary and Fees 35.00 4,800,000 4,296,774
Directors' Fees 36.00 4,725,071 4,704,000
Auditors' Fees 37.00 9,145,936 8,673,652
Depreciation, Repair and Maintenance 38.00 986,194,184 843,255,279
Other Operating Expenses 39.00 1,570,006,982 1,435,710,814
Total Operating Expenses (B) 13,943,797,240 14,008,818,505

Profit/(Loss) before Provision & Tax (C) = (A-B) 9,788,961,443 11,369,477,915

Provision for Loans and Advances 40.00 4,493,972,033 4,059,525,949


Provision for Off-balance Sheet Exposures 41.00 (200,000,000) 293,600,000
Provision for Other Assets 42.00 310,000,000 850,000,000
Provision for Employee Benefits 43.00 3,920,000,000 2,081,618,836
Provision for Diminution in Value of Investments 44.00 10,000,000 (250,000,000)
Other Provisions 45.00 332,176,609 124,680,316
Total Provisions (D) 8,866,148,642 7,159,425,101
Net Profit/(Loss) before Taxes (E) = (C-D) 922,812,801 4,210,052,814

Provision For Taxation (including Ruler Tax) (F) 46.00 673,841,625 1,523,553,732

Current Tax 1,025,527,957 1,676,093,445


Deferred Tax (351,686,332) (152,539,713)

Net Profit/(Loss) after Taxation (G) = (E-F) 248,971,176 2,686,499,082

14
Janata Bank Limited
Profit and Loss Account
for the year ended 31 December 2018

2018 2017
Note
Taka Taka
Appropriations

Statutory Reserve 15.00 184,562,560 779,178,611


General Reserve - -
Legal Reserve 16.00 8,919,308 28,690,357
193,481,868 807,868,968

Retained Surplus 55,489,308 1,878,630,114

Earnings Per Share (EPS) 48.00 1.17 14.04

The annexed notes 01 to 59 form an integral part of these financial statements.

__________________________ ____________________
A K M Shariat Ullah FCA ACCA Md. Abdus Salam Azad
Chief Financial Officer CEO & Managing Director

_______________________________ ______________________ ______________________


Masih Malik Chowdhury, FCS FCA Khondker Sabera Islam Luna Shamsuddoha
Director Director Chairman

Signed in terms of our separate report of even date annexed.

Dated: Dhaka Aziz Halim Khair Choudhury


29 April 2019 Chartered Accountants

15
Janata Bank Limited
Statement of Cash Flows
for the year ended 31 December 2018
2018 2017
Note
Taka Taka
A. Cash flows from operating activities
Interest Receipt in Cash 34,413,876,828 32,119,331,480
Interest Payments (25,587,427,807) (28,280,930,900)
Dividend Receipts 522,599,243 563,096,000
Fees and Commission Receipt in Cash 827,065,410 920,124,101
Recoveries of Loans Previously Written off 343,900,000 1,104,400,000
Cash Payments to Employees (9,666,871,685) (10,008,129,559)
Cash Payments to Suppliers (257,781,858) (237,765,433)
Income Tax Paid (1,488,379,876) (1,987,625,678)
Income from Investment 10,488,678,603 13,904,573,069
Receipts from Other Operating Activities 1,986,163,715 1,793,071,378
Payments for Other Operating Activities (3,330,050,803) (3,419,017,617)
Operating profit before changes in operating assets and liabilities 8,251,771,770 6,471,126,841

Increase/(Decrease) in Operating Assets and Liabilities


(Purchase)/sale of trading securities (1,622,808,835) 687,933,326
Loans and Advances to Customers (74,127,108,322) (56,542,639,487)
Other Assets 1,124,807,720 (2,518,140,818)
Other Liabilities 8,241,861,327 12,175,078,379
Deposits from Other Banks (9,253,597) (93,125,614)
Deposits from Customers 26,113,382,810 7,667,045,058
(40,279,118,897) (38,623,849,156)
Net cash flow from operating activities (A) (32,027,347,127) (32,152,722,315)
B. Cash flows from investing activities
Proceeds from sale of securities 527,933,710,420 1,948,598,208,121
Payments for purchase of securities (501,516,194,531) (1,885,208,112,290)
(Purchase)/Sales of Bond (Others) (15,120,000,000) (8,488,007,000)
(Purchase)/Sale of Property, Plant and Equipment (671,141,847) (347,032,498)
Net Cash Flow from Investing Activities (B) 10,626,374,042 54,555,056,333
C. Cash Flows From Financing Activities
Received from Issue of Ordinary Shares (Rights Issue) 4,000,000,000 -
Dividends Paid (10,000,000) (10,000,000)
(Paid)/Received from Borrowings 11,784,460,482 (1,833,026,401)
Net Cash Flow from Financing Activities (C) 15,774,460,482 (1,843,026,401)

D. Net Increase/(Decrease) in Cash (A+B+C) (5,626,512,603) 20,559,307,617


E. Effects of Exchange Rate Changes on Cash and Cash-equivalent 2,036,324,842 3,990,705,023
F. Cash and Cash Equivalents at the Beginning of the Year 97,582,786,543 73,032,773,903
G. Cash and Cash Equivalents at the End of the Year 93,992,598,782 97,582,786,543

Cash and Cash Equivalents at the End of the Year Represents


Cash in Hand (including foreign currencies) 4,809,168,567 4,298,619,091
Balance with Bangladesh Bank and its Agent bank
(including foreign currencies) 39,607,478,878 44,219,851,683
Balance with Other Banks and Financial Institutions 46,066,295,782 34,441,960,214
Money at Call and Short Notice 3,509,655,555 14,622,355,555
93,992,598,782 97,582,786,543
Net Operating Cash Flow Per Share (NOCFPS) (151.15) (167.99)

The annexed notes 01 to 59 form an integral part of these financial statements.

__________________________ ____________________
A K M Shariat Ullah FCA ACCA Md. Abdus Salam Azad
Chief Financial Officer CEO & Managing Director

_______________________________ ______________________ ______________________


Masih Malik Chowdhury, FCS FCA Khondker Sabera Islam Luna Shamsuddoha
Director Director Chairman
16
Janata Bank Limited
Statement of Changes in Equity
for the year ended 31 December 2018
Legal Foreign
Assets Revaluation Revaluation Revaluation Surplus/
Share Capital Statutory reserve currency
Particulars revaluation reserve for reserve for reserve on (deficit) in profit Total
paid-up reserve (UAE translation
reserve HTM HFT shares and loss account
branches) reserve
Balance as at 01 January 2018 19,140,000,000 11,317,079,307 198,613,980 6,066,181,584 233,482,825 104,627,214 1,383,657,394 3,755,911,382 9,163,780,345 51,363,334,031
New capital injected by the Government 4,000,000,000 - - - - - - - - 4,000,000,000
Change in rate fluctuation of overseas branches - 332,496 819,131 - - - - - (2,689,682) (1,538,055)
Net profit during the year - - - - - - - - 248,971,176 248,971,176
Transferred from revaluation of investment - - - - - 6,919,297 1,342,233,836 - (1,422,222,563) (73,069,430)
Dividend paid - - - - - - - - (10,000,000) (10,000,000)
Valuation adjustment - - - - - - - - - -
Transferred to statutory reserve during the year - 184,562,560 - - - - - - (184,562,560) -
Transferred to legal reserve during the year - - 8,919,308 - - - - - (8,919,308) -
Transferred from asset revaluation reserve - - - (18,289,230) - - - - 18,289,230 -
Transferred from/(to) deferred tax liability - - - - - 1,781,290 (476,734,517) - 12,192,820 (462,760,407)
Revaluation gain/(loss) on shares - - - - - - (508,568,444) - (508,568,444)
Balance as at 31 December 2018 23,140,000,000 11,501,974,363 208,352,419 6,047,892,354 233,482,825 113,327,801 2,249,156,713 3,247,342,938 7,814,839,458 54,556,368,871

Balance as at 31 December 2017 19,140,000,000 11,317,079,307 198,613,980 6,066,181,584 233,482,825 104,627,214 1,383,657,394 3,755,911,382 9,163,780,345 51,363,334,031

The annexed notes 01 to 59 form an integral part of these financial statements.

____________________
__________________________ Md. Abdus Salam Azad
A K M Shariat Ullah FCA ACCA CEO & Managing Director
Chief Financial Officer

_______________________________ ______________________ ______________________


Masih Malik Chowdhury, FCS FCA Khondker Sabera Islam Luna Shamsuddoha
Director Director Chairman

17
Janata Bank Limited
Liquidity Statement
Asset and Liability Maturity Analysis
as at 31 December 2018

Not more than 1


Particulars 1 to 3 months 3 to 12 months 1 to 5 years More than 5 years Total
month
Assets

Cash in Hand (including balance with Bangladesh Bank and its Agent Banks) 8,915,947,445 - - - 35,500,700,000 44,416,647,445
Balance with Other Banks and Financial Institutions 15,630,607,993 18,512,687,789 11,923,000,000 - - 46,066,295,782
Money at Call and Short Notice 3,417,300,000 - - - 92,355,555 3,509,655,555
Investments 7,425,865,188 2,498,738,200 25,953,110,111 102,067,384,860 28,838,694,801 166,783,793,160
Loans and Advances 47,112,500,000 7,510,000,000 198,416,900,000 220,389,200,000 60,278,560,206 533,707,160,206
Fixed assets including Land, Buildings, Furniture and Fixtures - - - - 10,277,044,324 10,277,044,324
Other Assets - - - - 61,285,879,507 61,285,879,507
Non-Banking Assets - - - - - -
Total assets 82,502,220,626 28,521,425,989 236,293,010,111 322,456,584,860 196,273,234,393 866,046,475,979

Liabilities
Borrowing from Bangladesh Bank, Other Banks, Financial Institutions and Agents - - 2,383,484,357 - 15,000,000,000 17,383,484,357
Deposits 114,922,026,541 146,199,815,455 179,762,475,117 187,141,910,423 43,226,965,718 671,253,193,254
Other Accounts - - 4,295,257,648 - - 4,295,257,648
Provision and Other Liabilities - - - - 118,558,171,849 118,558,171,849
Total liabilities 114,922,026,541 146,199,815,455 186,441,217,122 187,141,910,423 176,785,137,567 811,490,107,108
Net liquidity gap (32,419,805,915) (117,678,389,466) 49,851,792,989 135,314,674,437 19,488,096,826 54,556,368,871

The annexed notes 01 to 59 form an integral part of these financial statements.

__________________________ __________________________
A K M Shariat Ullah FCA ACCA Md. Abdus Salam Azad
Chief Financial Officer CEO & Managing Director

_______________________________ __________________________ __________________________


Masih Malik Chowdhury, FCS FCA Khondker Sabera Islam Luna Shamsuddoha
Director Director Chairman

18
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
3.00 Cash
Cash In Hand (including foreign currencies) 3.01 4,872,852,083 4,313,115,422 4,809,168,567 4,298,619,091
Balance with Bangladesh Bank and its Agent
3.02
Bank(s) (including foreign currencies) 39,607,478,878 44,219,851,683 39,607,478,878 44,219,851,683
44,480,330,961 48,532,967,105 44,416,647,445 48,518,470,774

3.01 Cash in Hand (including foreign currencies)


Local currency 4,637,233,287 4,212,084,906 4,584,505,735 4,212,084,906
Foreign currencies 235,618,796 101,030,516 224,662,832 86,534,185
4,872,852,083 4,313,115,422 4,809,168,567 4,298,619,091

3.02 Balance with Bangladesh Bank and its Agent Bank(s)


(including foreign currencies)
Bangladesh Bank
In local currency 37,692,813,217 42,299,273,138 37,692,813,217 42,299,273,138
In foreign currencies (clearing account) 3.02.01 851,251,411 766,941,211 851,251,411 766,941,211
38,544,064,628 43,066,214,349 38,544,064,628 43,066,214,349
Sonali Bank Limited (as an agent of
1,063,414,250
Bangladesh Bank)-in local currency 1,153,637,334 1,063,414,250 1,153,637,334
39,607,478,878 44,219,851,683 39,607,478,878 44,219,851,683

3.02.01 Balance with Bangladesh Bank in Foreign Currencies (Clearing Accounts)


Exchange Rate
Currencies Amount in 2018
(Average at BDT)

USD 10,008,258 83.55 836,189,992 666,675,377 836,189,992 666,675,377


GBP 182,288 105.98 19,318,889 23,024,830 19,318,889 23,024,830
EURO (44,363) 95.97 (4,257,470) 77,241,004 (4,257,470) 77,241,004
851,251,411 766,941,211 851,251,411 766,941,211

3.03 Disclosures Regarding Maintenance of CRR & SLR


3.03.01 Cash Reserve Requirement (CRR)

As per Monetary Policy Department (MPD) circular No. 01 dated 03 April 2018 of Bangladesh Bank, all scheduled Banks are required to maintain a CRR
minimum 5.5% on bi-weekly average basis of the average total demand and time liabilities of two months prior to current month (i.e. CRR of December
2018 will be based on weekly average balance of October 2018 as per Banking Regulation and Policy Department (BRPD) circular no. 12 dated 06
September 1998) and minimum 5% on daily basis. However, JBL has been maintaining its CRR according to policy.
Average demand and time liabilities 644,800,073,000 642,561,183,000
644,800,073,000 642,561,183,000
Required reserve (5.5% of average demand and time liabilities on bi-weekly basis) 35,464,004,015 41,766,476,895
Actual reserve held with Bangladesh Bank* 38,059,333,824 42,872,179,300
Surplus/(shortfall) 2,595,329,809 1,105,702,405

* As per statements of Bangladesh Bank


* TK. 3,67,20,000.00 kept lien against Bangladesh Bank TT discounting facilities.

3.03.02 Statutory Liquidity Ratio (SLR)


As per MPD circular No. 02 dated 10 December 2013 and Department of Off-Site Supervision (DOS) circular No. 01 dated 19 January 2014 of Bangladesh
Bank, all scheduled Banks are required to maintain a SLR minimum 13% on daily basis based on weekly average demand and time liabilities of two
months prior to current month (i.e. SLR of December 2018 will be based on weekly average balance of October 2018) against which, JBL has maintained
the SLR more than 13% as shown in the Balance Sheet in the following:
Average demand and time liabilities 644,800,073,000 642,561,183,000
644,800,073,000 642,561,183,000
Required reserve (13% of average demand and time liabilities) 83,824,009,490 83,532,953,790
Actual reserve held with Bangladesh Bank 3.03.02.01 128,072,743,539 152,877,749,384
Surplus 44,248,734,049 69,344,795,594

3.03.02.01 Actual Reserve Held as SLR


Cash in hand 4,238,735,479 3,644,002,672
Excess of CRR 2,595,329,809 1,105,702,405
Balance with agent of Bangladesh Bank (Sonali Bank Limited) as per statement 1,063,414,250 1,153,637,334
Unencumbered approved securities (HTM) 6.01.03.01 94,284,340,548 98,083,696,517
Unencumbered approved securities (HFT) 6.01.03.02 22,740,341,353 36,960,342,326
Reverse-repo 6.06 3,150,582,100 11,930,368,130
128,072,743,539 152,877,749,384

43
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
4.00 Balance with Other Banks and Financial Institutions
In Bangladesh 4.01 30,640,687,789 20,174,581,909 30,435,687,789 19,919,581,909
Outside Bangladesh 4.02 15,756,630,812 14,544,423,350 15,630,607,993 14,522,378,305
46,397,318,601 34,719,005,259 46,066,295,782 34,441,960,214
4.01 Balance in Bangladesh
Current deposits 4.01.01 12,359,090 46,253,210 12,359,090 46,253,210
Short term deposits 4.01.02 392,944 392,944 392,944 392,944
Fixed deposits 4.01.03 30,627,935,755 20,127,935,755 30,422,935,755 19,872,935,755
30,640,687,789 20,174,581,909 30,435,687,789 19,919,581,909
4.01.01 Current Deposits
Banks
Q-cash settlement account 7,727,541 46,253,210 7,727,541 46,253,210
NPSB settlement account 4,631,549 - 4,631,549 -
12,359,090 46,253,210 12,359,090 46,253,210
Non-bank Financial Institutions - - - -
12,359,090 46,253,210 12,359,090 46,253,210
4.01.02 Short Term Deposits
Banks
Eastern Bank Limited 42,843 42,843 42,843 42,843
Dhaka Bank Limited 98,087 98,087 98,087 98,087
National Bank Limited 32,742 32,742 32,742 32,742
Dutch Bangla Bank Limited 56,101 56,101 56,101 56,101
Uttara Bank Limited 73,321 73,321 73,321 73,321
Social Islami Bank Limited 60,658 60,658 60,658 60,658
ICB Islamic Bank Limited 29,192 29,192 29,192 29,192
392,944 392,944 392,944 392,944
Non-bank Financial Institutions - - - -
392,944 392,944 392,944 392,944
4.01.03 Fixed Deposits
Banks
Ansar VDP Unnayan Bank 300,000,000 300,000,000 300,000,000 300,000,000
Investment Corporation of Bangladesh 5,005,000,000 2,155,000,000 4,800,000,000 1,900,000,000
Bangladesh Commerce Bank Limited 300,000,000 300,000,000 300,000,000 300,000,000
AB Bank Limited 1,000,000,000 - 1,000,000,000 -
Premier Bank Limited 1,400,000,000 500,000,000 1,400,000,000 500,000,000
Midland Bank Limited 500,000,000 250,000,000 500,000,000 250,000,000
Bangladesh Development Bank Limited 500,000,000 - 500,000,000 -
Farmers Bank Limited 900,000,000 900,000,000 900,000,000 900,000,000
NRB Commercial Bank Limited 800,000,000 300,000,000 800,000,000 300,000,000
Union Bank Limited 1,800,000,000 1,300,000,000 1,800,000,000 1,300,000,000
Soutth Bangla Agriculture & Commerce Bank Limited 500,000,000 500,000,000 500,000,000 500,000,000
IFIC Bank Limited - 500,000,000 - 500,000,000
EXIM Bank Limited 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
Jamuna Bank Limited - 500,000,000 - 500,000,000
Meghna Bank Limited 500,000,000 200,000,000 500,000,000 200,000,000
National Bank Limited 1,500,000,000 500,000,000 1,500,000,000 500,000,000
One Bank Limited 1,000,000,000 500,000,000 1,000,000,000 500,000,000
NRB Global Bank Limited 1,000,000,000 500,000,000 1,000,000,000 500,000,000
Shahjalal Islami Bank Limited - 1,000,000,000 - 1,000,000,000
Social Islami Bank Limited 900,000,000 1,500,000,000 900,000,000 1,500,000,000
Mercantile Bank Limited 500,000,000 - 500,000,000 -
First Security Islami Bank Limited 500,000,000 - 500,000,000 -
Standard Bank Limited 1,000,000,000 - 1,000,000,000 -
Dhaka Bank Limited 1,000,000,000 - 1,000,000,000 -
ICB Islamic Bank Limited 142,935,755 142,935,755 142,935,755 142,935,755
22,047,935,755 12,847,935,755 21,842,935,755 12,592,935,755
Non-bank Financial Institutions
People's Leasing & Financial Services Limited 380,000,000 380,000,000 380,000,000 380,000,000
Industrial & Infrastructure Development Finance Company Limited 200,000,000 200,000,000 200,000,000 200,000,000
BD Finance Limited 550,000,000 400,000,000 550,000,000 400,000,000
Bay Leasing & Investment Limited 100,000,000 - 100,000,000 -
Delta Brac Housing Limited 2,300,000,000 2,500,000,000 2,300,000,000 2,500,000,000
Fareast Finance & Investment Limited 400,000,000 400,000,000 400,000,000 400,000,000
International Leasing and Finance Limited 300,000,000 300,000,000 300,000,000 300,000,000
Industrial Development Leasing Company 500,000,000 - 500,000,000 -
IPDC Finance Limited 200,000,000 200,000,000 200,000,000 200,000,000
LankaBangla Finance Limited 600,000,000 400,000,000 600,000,000 400,000,000
Premier Leasing & Finance Limited 500,000,000 400,000,000 500,000,000 400,000,000
Union Capital Limited 200,000,000 200,000,000 200,000,000 200,000,000
Reliance Finance Limited 650,000,000 500,000,000 650,000,000 500,000,000
Phoenix Finance Limited 500,000,000 200,000,000 500,000,000 200,000,000
National Finance Limited 100,000,000 100,000,000 100,000,000 100,000,000
FAS Finance & Investment Limited 300,000,000 300,000,000 300,000,000 300,000,000
GSP Finance Limited 200,000,000 200,000,000 200,000,000 200,000,000
Meridian Finance Limited 200,000,000 200,000,000 200,000,000 200,000,000
National Housing Limited 200,000,000 200,000,000 200,000,000 200,000,000
First Finance Limited 200,000,000 200,000,000 200,000,000 200,000,000
8,580,000,000 7,280,000,000 8,580,000,000 7,280,000,000
30,627,935,755 20,127,935,755 30,422,935,755 19,872,935,755

44
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
4.02 Balance outside Bangladesh
Debit balance with NOSTRO Accounts
1 WELLS Fargo Bank N. A. 197,689,913 1,770,759,783 197,689,913 1,770,759,783
2 Standard Chartered Bank, Kolkata 147,061,024 557,564,616 147,061,024 557,564,616
3 A.B. Bank Limited, Mumbai 287,119,512 220,695,939 287,119,512 220,695,939
4 Bhutan National Bank 2,381,615 9,441,839 2,381,615 9,441,839
5 Rastrya Banijja Bank, Kathmandu 7,401,539 392,186 7,401,539 392,186
6 Sonali Bank Limited, Kolkata 65,211,281 54,306,946 65,211,281 54,306,946
7 Peoples Bank, Colombo 8,334,088 8,248,043 8,334,088 8,248,043
8 ICICI Bank Limited, Mumbai 78,020,036 1,138,345,831 78,020,036 1,138,345,831
9 AMEX Bank Limited, Kolkata 102,210,672 101,201,410 102,210,672 101,201,410
10 Citi Bank, NY 77,833,911 - 77,833,911 -
11 Bank of Montreal, Canada 1,174,740 - 1,174,740 -
12 Union Bank of Switzerland - 57,056,753 - 57,056,753
13 Banka-Intesa SPA, Italy 27,117,362 - 27,117,362 -
14 Society General Paris - 7,132,609 - 7,132,609
15 Standard Chartered GMBH F.F. 1,251,000,399 - 1,251,000,399 -
16 Standard Chartered Bank, NY 329,574,622 - 329,574,622 -
17 Commerz Bank F. FURT 171,756,268 6,270,341 171,756,268 6,270,341
18 Standard Chartered Bank, London 131,290,787 17,818,659 131,290,787 17,818,659
19 Janata Bank Limited, Abu Dhabi (A/C-1) 3,584 3,760 3,584 3,760
20 Habib American Bank N.Y. 231,806,444 176,719,422 231,806,444 176,719,422
21 Janata Bank Limited, Abu Dhabi (A/C-2) 198,182,738 - 198,182,738 -
22 Habib Metropolitan Bank, Pakistan 612,044 15,913,874 612,044 15,913,874
23 Standard Chartered Bank, Tokyo - 83,527,841 - 83,527,841
24 ICICI Bank Limited (USD), Hong Kong 16,692,394 4,667,853 16,692,394 4,667,853
25 Wachovia Bank, EURO 6,313,200 8,988,783 6,313,200 8,988,783
26 Bank of Tokyo-Mitsubishi Ltd., Japan 1,326,796 11,044,960 1,326,796 11,044,960
27 ALPHA Bank A.E. Athens, Greece 23,508,589 24,376,425 23,508,589 24,376,425
28 Mashreq Bank, New York 38,320,081 297,844,724 38,320,081 297,844,724
29 Sonali Bank Limited, London UK (GBP) 27 27 27 27
30 United Bank of India 14,251,130 144,051,662 14,251,130 144,051,662
3,416,194,796 4,716,374,286 3,416,194,796 4,716,374,286
(i) UAE central bank 3,984,191,410 2,545,439,871 3,984,191,410 2,545,439,871
(ii) UAE other banks 7,781,875,400 7,187,827,500 7,781,875,400 7,187,827,500
(iii) UAE foreign banks 448,346,387 72,736,648 448,346,387 72,736,648
(iv) Italy other banks 126,022,819 22,045,045 - -
12,340,436,016 9,828,049,064 12,214,413,197 9,806,004,019

15,756,630,812 14,544,423,350 15,630,607,993 14,522,378,305


4.02.01 Balance outside Bangladesh in Foreign Currencies (currency wise)

Amount in
Exchange Rate
Currencies Foreign
(Average at BDT)
Currencies (2018)

ACU Dollar 8,529,069 83.55 712,602,941 2,250,162,346 712,602,941 2,250,162,346


Canadian Dollar 18,966 61.94 1,174,739 - 1,174,739 -
Swiss Frank (CHF) - - - 57,056,753 - 57,056,753
EURO 15,418,903 95.97 1,479,695,819 46,768,158 1,479,695,819 46,768,158
Great Britain Pound (GBP) 1,238,911 105.98 131,294,397 17,822,446 131,294,397 17,822,446
Japanese Yen 1,735,054 0.76 1,326,796 94,572,801 1,326,796 94,572,801
US Dollar 13,047,278 83.55 1,090,100,104 2,249,991,782 1,090,100,104 2,249,991,782
3,542,217,615 4,716,374,286 3,416,194,796 4,716,374,286

Dirham (UAE Central Bank) 173,050,406 23.02 3,984,191,410 2,545,439,871 3,984,191,410 2,545,439,871
Dirham (UAE Other Banks) 338,000,000 23.02 7,781,875,400 7,187,827,500 7,781,875,400 7,187,827,500
Dirham (UAE Foreign Banks) 19,473,594 23.02 448,346,387 72,736,648 448,346,387 72,736,648
EURO (for Janata Exchange Co. Srl, Italy) 1,313,198 95.97 126,022,819 22,045,045 -
12,340,436,016 9,828,049,064 12,214,413,197 9,806,004,019

15,756,630,812 14,544,423,350 15,630,607,993 14,522,378,305

4.03 Maturity Grouping of Balance with Other Banks and Financial Institutions
On demand - - -
Not more than one month 15,630,607,993 3,681,010,879 15,630,607,993 3,681,010,879
More than 1 months but less than 3 months 18,512,687,789 4,562,963,638 18,512,687,789 4,562,963,638
More than 3 months but less than 1 year 12,254,022,819 11,906,070,528 11,923,000,000 11,629,025,483
More than 1 year but less than 5 years - 14,568,960,214 - 14,568,960,214
More than 5 years - - - -
46,397,318,601 34,719,005,259 46,066,295,782 34,441,960,214

5.00 Money at Call and Short Notice


In Bangladesh 5.01 3,509,655,555 14,622,355,555 3,509,655,555 14,622,355,555
Outside Bangladesh 5.02 - - - -
3,509,655,555 14,622,355,555 3,509,655,555 14,622,355,555

45
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017

5.01 In Bangladesh
Banks
ICB Islamic Bank Limited 92,355,555 92,355,555 92,355,555 92,355,555
NRB Global Bank Limited - 750,000,000 - 750,000,000
Farmers Bank Limited - 90,000,000 - 90,000,000
Midland Bank Limited 120,000,000 100,000,000 120,000,000 100,000,000
Modhumoti Bank Limited 100,000,000 550,000,000 100,000,000 550,000,000
Meghna Bank Limited - 450,000,000 - 450,000,000
Pubali Bank Limited - 1,800,000,000 - 1,800,000,000
Standard Bank Limited 250,000,000 1,400,000,000 250,000,000 1,400,000,000
The City Bank Limited 500,000,000 1,900,000,000 500,000,000 1,900,000,000
AB Bank Limited - 700,000,000 - 700,000,000
NRB Commercial Bank Limited - 300,000,000 - 300,000,000
Premier Bank Limited - 1,650,000,000 - 1,650,000,000
National Bank Limited 400,000,000 700,000,000 400,000,000 700,000,000
Bank Asia Bank Limited - 1,000,000,000 - 1,000,000,000
NRB Bank Limited 190,000,000 450,000,000 190,000,000 450,000,000
The Farmers Bank Limited 80,000,000 - 80,000,000 -
Citi Bank NA 200,000,000 - 200,000,000 -
Uttara Bank Limited 500,000,000 - 500,000,000 -
Rupali Bank Limited - 500,000,000 - 500,000,000
2,432,355,555 12,432,355,555 2,432,355,555 12,432,355,555

Non-bank Financial Institutions


Peoples Leasing & Financial Service Limited 162,900,000 190,000,000 162,900,000 190,000,000
LankaBangla Finance Limited 170,000,000 200,000,000 170,000,000 200,000,000
Phoenix Finance and Investments Limited - 200,000,000 - 200,000,000
International Leasing and Financial Services Limited 169,400,000 190,000,000 169,400,000 190,000,000
Industrial & Infrastructure Development Finance Company Limited 30,000,000 140,000,000 30,000,000 140,000,000
Bangladesh Finance and Investment Company Limited (BD Finance) - 100,000,000 - 100,000,000
Premier Leasing & Finance Limited - 200,000,000 - 200,000,000
First Leasing and Finance Limited 79,000,000 180,000,000 79,000,000 180,000,000
Far East Finance Limited 16,000,000 180,000,000 16,000,000 180,000,000
Oman BD - 130,000,000 - 130,000,000
IPDC 110,000,000 180,000,000 110,000,000 180,000,000
National Housing Limited 110,000,000 150,000,000 110,000,000 150,000,000
IDLC BD Limited 160,000,000 - 160,000,000 -
Meridian Finance and Investment Limited 30,000,000 - 30,000,000 -
National Finance Limited - 60,000,000 - 60,000,000
GSP Finance 40,000,000 90,000,000 40,000,000 90,000,000
1,077,300,000 2,190,000,000 1,077,300,000 2,190,000,000
3,509,655,555 14,622,355,555 3,509,655,555 14,622,355,555

5.02 Outside Bangladesh - - - -

6.00 Investments
Government securities 6.01 120,195,131,501 146,987,729,573 120,195,131,501 146,987,729,573
Other investments 6.02 49,140,823,496 32,734,654,121 46,588,661,659 30,354,421,268
169,335,954,997 179,722,383,694 166,783,793,160 177,342,150,841

6.01 Government Securities


Treasury bills - primary 6.01.01 - 19,808,076,205 - 19,808,076,205
Government notes/bonds/other securities 6.01.02 117,024,681,901 115,235,962,638 117,024,681,901 115,235,962,638
Prize bond 19,867,500 13,322,600 19,867,500 13,322,600
Reverse -repo 6.06 3,150,582,100 11,930,368,130 3,150,582,100 11,930,368,130
120,195,131,501 146,987,729,573 120,195,131,501 146,987,729,573
6.01.01 Treasury Bills- Primary
91 days Treasury bills - 1,462,396,840 - 1,462,396,840
182 days Treasury bills - 2,995,948,108 - 2,995,948,108
364 days Treasury bills - 6,605,469,917 - 6,605,469,917
07 days Bangladesh Bank Bill - 1,999,677,090 - 1,999,677,090
30 days Bangladesh Bank Bill - 6,744,584,250 - 6,744,584,250
- 19,808,076,205 - 19,808,076,205

46
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
6.01.02 Government Notes/ Bonds/ Other Securities
2-15 years Special Treasury Bond 23,085,100,000 23,085,100,000 23,085,100,000 23,085,100,000
2 years Bangladesh Govt. Treasury Bond 8,758,513,232 6,058,589,602 8,758,513,232 6,058,589,602
5 years Bangladesh Govt. Treasury Bond 17,206,335,609 18,932,530,707 17,206,335,609 18,932,530,707
10 years Bangladesh Govt. Treasury Bond 32,158,967,361 30,994,142,603 32,158,967,361 30,994,142,603
15 years Bangladesh Govt. Treasury Bond 13,263,394,106 13,790,767,661 13,263,394,106 13,790,767,661
20 years Bangladesh Govt. Treasury Bond 6,123,558,245 5,816,854,454 6,123,558,245 5,816,854,454
25 years Treasury Bond (JSAP) 33,497,500 109,205,000 33,497,500 109,205,000
1-13 years Special Treasury Bond (BJMC) 7,467,100,000 7,467,100,000 7,467,100,000 7,467,100,000
ICB 986,652,700 986,652,700 986,652,700 986,652,700
Karmasangthan Bank 160,000,000 160,000,000 160,000,000 160,000,000
Remeasured 7,781,563,148 7,835,019,911 7,781,563,148 7,835,019,911
117,024,681,901 115,235,962,638 117,024,681,901 115,235,962,638

117,024,681,901 135,044,038,843 117,024,681,901 135,044,038,843

6.01.03 Investment in Government securities categorised as per Bangladesh Bank's DOS circular No. 05 date 26 May 2008 and DOS circular No. 05 date
28 January 2009
6.01.03.01 Held to Maturity (HTM)
Treasury Bill
182 days Treasury Bill - 496,155,608 - 496,155,608
364 days Treasury Bill - 437,832,117 - 437,832,117
07 days Bangladesh Bank Bill - 1,999,677,090 - 1,999,677,090
- 2,933,664,815 - 2,933,664,815

Bonds/ Other Securities


2-15 years Special Treasury Bond 23,085,100,000 23,085,100,000 23,085,100,000 23,085,100,000
2 years Bangladesh Govt. Treasury Bond 3,049,597,787 5,358,384,502 3,049,597,787 5,358,384,502
5 years Bangladesh Govt. Treasury Bond 6,718,183,686 6,813,974,517 6,718,183,686 6,813,974,517
10 years Bangladesh Govt. Treasury Bond 29,174,732,842 27,789,979,489 29,174,732,842 27,789,979,489
15 years Bangladesh Govt. Treasury Bond 9,704,489,030 9,727,761,130 9,704,489,030 9,727,761,130
20 years Bangladesh Govt. Treasury Bond 6,123,423,855 5,816,854,453 6,123,423,855 5,816,854,453
25 years Treasury Bond (JSAP) 33,497,500 109,205,000 33,497,500 109,205,000
1-13 years Special Treasury Bond (BJMC) 7,467,100,000 7,467,100,000 7,467,100,000 7,467,100,000
Karmasangthan Bank 160,000,000 160,000,000 160,000,000 160,000,000
ICB 986,652,700 986,652,700 986,652,700 986,652,700
Remeasured 7,781,563,148 7,835,019,911 7,781,563,148 7,835,019,911
94,284,340,548 95,150,031,702 94,284,340,548 95,150,031,702
Total HTM 94,284,340,548 98,083,696,517 94,284,340,548 98,083,696,517
6.01.03.02 Held for Trading (HFT)
Treasury Bill
91 days Treasury Bill - 1,462,396,840 - 1,462,396,840
182 days Treasury Bill - 2,499,792,500 - 2,499,792,500
364 days Treasury Bill - 6,167,637,800 - 6,167,637,800
30 days Bangladesh Bank Bill - 6,744,584,250 - 6,744,584,250
- 16,874,411,390 - 16,874,411,390

Bonds
2 years Bangladesh Govt. Treasury Bond 5,708,915,445 700,205,100 5,708,915,445 700,205,100
5 years Bangladesh Govt. Treasury Bond 10,488,151,923 12,118,556,190 10,488,151,923 12,118,556,190
10 years Bangladesh Govt. Treasury Bond 2,984,234,519 3,204,163,115 2,984,234,519 3,204,163,115
15 years Bangladesh Govt. Treasury Bond 3,558,905,076 4,063,006,531 3,558,905,076 4,063,006,531
20 years Bangladesh Govt. Treasury Bond 134,391 - 134,391 -
22,740,341,353 20,085,930,936 22,740,341,353 20,085,930,936
Total HFT 22,740,341,353 36,960,342,326 22,740,341,353 36,960,342,326
Grand Total (HTM & HFT) 117,024,681,901 135,044,038,843 117,024,681,901 135,044,038,843

6.02 Other Investments


Debentures 51.00 138,526,296 138,526,296 138,526,296 138,526,296
Corporate bond 6.02.01 30,070,000,000 14,950,000,000 30,070,000,000 14,950,000,000
Ordinary shares (quoted and unquoted) 6.02.02 14,903,654,508 13,615,095,350 12,380,135,363 11,265,894,972
Preference share 6.02.03 4,000,000,000 4,000,000,000 4,000,000,000 4,000,000,000
Financial assets available for sale 19,334,916 20,638,540 - -
Financial assets held to maturity 9,307,776 10,393,935 - -
49,140,823,496 32,734,654,121 46,588,661,659 30,354,421,268

47
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
6.02.01 Corporate Bond
PBL Subordinated Bond 1,700,000,000 250,000,000 1,700,000,000 250,000,000
MTBL Subordinated Bond 500,000,000 500,000,000 500,000,000 500,000,000
DBL Subordinated Bond 1,500,000,000 500,000,000 1,500,000,000 500,000,000
TBL Subordinated Bond 2,090,000,000 660,000,000 2,090,000,000 660,000,000
UCBL Subordinate Bond 1,250,000,000 1,500,000,000 1,250,000,000 1,500,000,000
SBL Subordinate Bond 680,000,000 740,000,000 680,000,000 740,000,000
Bank Asia Subordinate Bond 450,000,000 500,000,000 450,000,000 500,000,000
EBL Subordinate Bond 200,000,000 250,000,000 200,000,000 250,000,000
AB Bank Subordinate Bond 400,000,000 500,000,000 400,000,000 500,000,000
One Bank Subordinate Bond 700,000,000 800,000,000 700,000,000 800,000,000
IFIC Bank Subordinate Bond 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
SEB Bank Subordinate Bond 1,500,000,000 500,000,000 1,500,000,000 500,000,000
Exim Bank Subordinate Bond 500,000,000 500,000,000 500,000,000 500,000,000
The City Bank Subordinate Bond 750,000,000 750,000,000 750,000,000 750,000,000
Pubali Bank Subordinate Bond 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
Agrani Bank Subordinate Bond 4,000,000,000 4,000,000,000 4,000,000,000 4,000,000,000
First Security Islami Bank Subordinate Bond 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
Rupali Bank Ltd. 2,000,000,000 - 2,000,000,000 -
Premier Bank 1,000,000,000 - 1,000,000,000 -
Mercantile Bank 1,000,000,000 - 1,000,000,000 -
Jamuna Bank 400,000,000 - 400,000,000 -
Farmers Bank Ltd 450,000,000 - 450,000,000 -
Dutch Bangla Bank Ltd. 1,000,000,000 - 1,000,000,000 -
Investment Corporation of Bangladesh (ICB) 5,000,000,000 - 5,000,000,000 -
30,070,000,000 14,950,000,000 30,070,000,000 14,950,000,000

6.02.01.01 Credit Rating Status of Bond Issuer 2018


Long Term Short Term
PBL Subordinated Bond AA ST-2
MTBL Subordinated Bond AA ST-2
DBL Subordinated Bond A1 ST-2
TBL Subordinated Bond AA2 ST-2
UCBL Subordinate Bond AA ST-2
SBL Subordinate Bond AA ST-2
Bank Asia Subordinate Bond AA2 ST-2
EBL Subordinate Bond AA+ ST-2
AB Bank Subordinate Bond A1 ST-2
One Bank Subordinate Bond AA ST-2
IFIC Bank Subordinate Bond AA2 ST-2
SEB Bank Subordinate Bond AA ST-2
Exim Bank Subordinate Bond AA- ST-2
The City Bank Subordinate Bond AA2 ST-2
Pubali Bank Subordinate Bond AA ST-2
Agrani Bank Subordinate Bond A- ST-3
First Security Islami Bank Subordinate Bond A+ ST-2
Rupali Bank Ltd. A- ST-2
Premier Bank AA ST-1
Mercantile Bank AA ST-2
Jamuna Bank AA2 ST-2
Farmers Bank Ltd A- ST-3
Dutch Bangla Bank Ltd. AA+ ST-1
Investment Corporation of Bangladesh (ICB) AAA ST-1

6.02.02 Ordinary Shares


Quoted- fully paid-up ordinary shares 52(a) 12,979,450,413 13,370,207,696 10,455,931,268 11,021,007,318
Unquoted- fully paid-up ordinary shares 52(b) 1,924,204,095 244,887,654 1,924,204,095 244,887,654
14,903,654,508 13,615,095,350 12,380,135,363 11,265,894,972

6.02.03 Preference Shares

Redeemable preference share 6.02.03.01 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000


Convertible preference share 6.02.03.02 3,000,000,000 3,000,000,000 3,000,000,000 3,000,000,000
4,000,000,000 4,000,000,000 4,000,000,000 4,000,000,000

6.02.03.01 Redeemable Preference Share 52(c)


Orion Infrastructure Ltd. 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000

6.02.03.02 Convertible Preference Share 52(d)


Orion Infrastructure Ltd. 3,000,000,000 3,000,000,000 3,000,000,000 3,000,000,000
3,000,000,000 3,000,000,000 3,000,000,000 3,000,000,000

48
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
6.03 Categorised as Statutory and Non-statutory Investment
Statutory investment portfolio 6.03.01 120,175,264,001 146,974,406,973 120,175,264,001 146,974,406,973
Non-statutory investment portfolio 6.03.02 49,160,690,996 32,747,976,721 46,608,529,159 30,367,743,868
169,335,954,997 179,722,383,694 166,783,793,160 177,342,150,841

6.03.01 Statutory Investment Portfolio


Held to Maturity (HTM) 6.01.03.01 94,284,340,548 98,083,696,517 94,284,340,548 98,083,696,517
Held for Trading (HFT) 6.01.03.02 22,740,341,353 36,960,342,326 22,740,341,353 36,960,342,326
Reverse -Repo 6.06 3,150,582,100 11,930,368,130 3,150,582,100 11,930,368,130
120,175,264,001 146,974,406,973 120,175,264,001 146,974,406,973

6.03.02 Non-statutory Investment Portfolio


Debentures 50.00 138,526,296 138,526,296 138,526,296 138,526,296
Corporate Bond 6.02.01 30,070,000,000 14,950,000,000 30,070,000,000 14,950,000,000
Ordinary shares (Quoted and unquoted) 6.02.02 14,903,654,508 13,615,095,350 12,380,135,363 11,265,894,972
Preference share 6.02.03 4,000,000,000 4,000,000,000 4,000,000,000 4,000,000,000
Financial assets available for sale 19,334,916 20,638,540 - -
Financial assets held to maturity 9,307,776 10,393,935 - -
Prize bond 19,867,500 13,322,600 19,867,500 13,322,600
49,160,690,996 32,747,976,721 46,608,529,159 30,367,743,868

6.04 Classified Investments


Debentures 138,526,296 138,526,296 138,526,296 138,526,296
Un-quoted shares 48,497,157 48,497,157 48,497,157 48,497,157
187,023,453 187,023,453 187,023,453 187,023,453

6.05 Required Provision for Investment


For classified investment 187,023,453 187,023,453 187,023,453 187,023,453
For difference between market price & cost price of shares* 8,462,078 - 8,462,078 -
Total required provision for classified investment 195,485,531 187,023,453 195,485,531 187,023,453
Provision maintained 13.09 599,524,438 573,524,438 199,225,452 189,225,452
Provision excess/(shortfall) 404,038,907 386,500,985 3,739,921 2,201,999

* Investment in quoted shares has been valued at the fair value as on the reporting date. As per Bangladesh Bank's DOS circular No. 04 dated 24 November
2011, provisions for diminution value of shares will be made on the difference of average cost and market price. Details given in Note No.-51.

6.06 Disclosure Regarding outstanding Reverse Repo


Amount as on Amount as on
Agreement Date Reversal Date
31 December 2018 31 December 2017
AB Bank Limited 26 December 2018 02 January 2019 718,223,455 2,472,743,793
National Bank Limited 27 December 2018 03 January 2019 589,558,515 499,194,450
Brac Bank Limited - 1,398,516,000
International Leasing 23 December 2018 01 January 2019 165,657,147 267,653,730
International Leasing 26 December 2018 02 January 2019 156,877,752 270,727,725
International Leasing 27 December 2018 03 January 2019 218,437,931 -
Pubali Bank Limited 27 December 2018 03 January 2019 529,642,250 -
NRB Commercial Bank Limited - 780,907,450
NRB Commercial Bank Limited - 108,883,500
NRB Bank Limited - 451,436,487
Dhaka Bank Limited - 3,824,615,553
Premier Bank Limited - 767,162,182
Jamuna Bank Limited 24 December 2018 01 January 2019 487,070,570 1,088,527,260
Jamuna Bank Limited 27 December 2018 03 January 2019 285,114,480 -
3,150,582,100 11,930,368,130
6.07 Disclosure Regarding Overall Transaction of Securities Purchased under Reverse Repo
2018 2017
with Bangladesh with other Banks with Bangladesh with other Banks
Bank and FI's Bank and FI's
Minimum outstanding during the year - 13,053,406,628 - 1,021,252,763
Maximum outstanding during the year - 492,231,071 - 15,753,073,414
Daily average outstanding during the year - 3,156,915,890 - 4,561,269,697

6.08 Maturity Grouping of Investment


Receivable
Not more than one month 7,425,865,188 34,389,500,000 7,425,865,188 34,389,500,000
More than 1 months but less than 3 months 2,498,738,200 18,618,951,463 2,498,738,200 18,618,951,463
More than 3 months but less than 1 year 28,505,271,948 28,691,758,321 25,953,110,111 26,311,525,468
More than 1 year but less than 5 years 102,067,384,860 40,326,668,459 102,067,384,860 40,326,668,459
Above 5 years 28,838,694,801 57,695,505,451 28,838,694,801 57,695,505,451
169,335,954,997 179,722,383,694 166,783,793,160 177,342,150,841

49
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017

7.00 Loans and Advances


Loans, cash credits, overdrafts etc. 7.01 519,483,101,537 444,050,993,501 517,030,725,975 441,506,164,972
Bills purchased and discounted 7.02 16,676,434,231 18,073,886,912 16,676,434,231 18,073,886,912
536,159,535,768 462,124,880,413 533,707,160,206 459,580,051,884

7.01 Loans, Cash Credits and Overdrafts


Loans 7.01.01 381,982,510,498 337,625,381,019 379,530,134,936 335,080,552,490
Cash credits 7.01.02 115,815,371,096 98,144,315,729 115,815,371,096 98,144,315,729
Overdrafts 7.01.03 21,685,219,943 8,281,296,753 21,685,219,943 8,281,296,753
519,483,101,537 444,050,993,501 517,030,725,975 441,506,164,972
7.01.01 Loans
Rural credit 29,750,722,839 27,154,972,530 29,750,722,839 27,154,972,530
Loan small scale industries 139,670,682,488 125,857,581,291 139,670,682,488 125,857,581,291
Transport loans 431,813,609 448,787,820 431,813,609 448,787,820
General house building loan 1,203,141,128 1,211,190,235 1,203,141,128 1,211,190,235
Loan-general 12,063,372,386 8,043,392,641 12,063,372,386 8,043,392,641
Loan against import merchandise 262,363,402 229,601,692 262,363,402 229,601,692
Loan against trust receipts 31,215,853,445 25,143,563,388 31,215,853,445 25,143,563,388
Packing credit 14,040,838,438 14,761,726,807 14,040,838,438 14,761,726,807
Term loan-packing credit (rescheduled) 3,513,888,003 3,513,888,003
Staff loan 7.01.01.01 47,236,505,251 42,509,298,058 47,236,505,251 42,509,298,058
Loan against DPS/SPS 69,777,407 112,449,487 69,777,407 112,449,487
Rural housing 43,010 370,403 43,010 370,403
Bridge finance 3,244,762,891 3,027,357,639 3,244,762,891 3,027,357,639
Credit card 32,436,023 28,208,292 32,436,023 28,208,292
Payment against document (PAD) 7.01.01.02 62,809,606,963 55,304,175,887 62,809,606,963 55,304,175,887
Loan against cash subsidy/cash assistance 874,288,455 1,824,553,605 874,288,455 1,824,553,605
Demand loan (Cash) 21,099,115,402 28,689,838,494 21,099,115,402 28,689,838,494
Term loan-deferred LC (rescheduled) 11,554,254,004 11,554,254,004
Special loan for service holders 456,658,585 728,362,652 456,658,585 728,362,652
B.M.R.E. Loan - 774,747 - 774,747
Bi-cycle Loan 11,207 33,223 11,207 33,223
Freedom fighters loan - 4,313,599 - 4,313,599
Margin loan 2,452,375,562 2,544,828,529 - -
381,982,510,498 337,625,381,019 379,530,134,936 335,080,552,490

7.01.01.01 Staff Loan


Staff house building loan 44,813,923,420 40,209,645,308 44,813,923,420 40,209,645,308
Loans against provident fund 1,713,405 1,713,402 1,713,405 1,713,402
Staff computer loan 255,419,462 270,378,544 255,419,462 270,378,544
Staff motorcycle loan 1,538,510,090 1,412,904,942 1,538,510,090 1,412,904,942
Executive car loan 626,938,874 614,655,862 626,938,874 614,655,862
47,236,505,251 42,509,298,058 47,236,505,251 42,509,298,058

7.01.01.02 Payment against Document (PAD)


Payment against document (PAD)-Cash 2,329,937,957 4,328,484,291 2,329,937,957 4,328,484,291
Payment against document (PAD)-AID/ Grant etc. 836,207 836,207 836,207 836,207
Payment against document (PAD)-WES 7,189,872 7,189,872 7,189,872 7,189,872
Payment against document (PAD)-Inland 16,680,008,000 14,068,371,750 16,680,008,000 14,068,371,750
PAD/Demand loan-Back to Back 31,034,273,427 30,822,713,752 31,034,273,427 30,822,713,752
Term Loan-BBLC (recheduled) 2,217,108,445 - 2,217,108,445 -
Payment against document (PAD)-Garments 241,248,566 250,162,999 241,248,566 250,162,999
Payment against document (PAD)-F.C cash 108,577,188 83,076,192 108,577,188 83,076,192
Payment against document (PAD) -EDF 10,190,427,301 5,743,340,824 10,190,427,301 5,743,340,824
62,809,606,963 55,304,175,887 62,809,606,963 55,304,175,887
7.01.02 Cash Credits
Cash credit 108,238,682,491 91,186,037,960 108,238,682,491 91,186,037,960
Export cash credit 7,575,143,031 6,956,573,631 7,575,143,031 6,956,573,631
Weavers cash credit 1,545,574 1,704,138 1,545,574 1,704,138
115,815,371,096 98,144,315,729 115,815,371,096 98,144,315,729
7.01.03 Overdrafts
Clean overdraft 48,156,783 47,736,746 48,156,783 47,736,746
Temporary overdraft 565,558,720 559,215,479 565,558,720 559,215,479
Secured overdraft 21,071,504,440 7,674,344,528 21,071,504,440 7,674,344,528
21,685,219,943 8,281,296,753 21,685,219,943 8,281,296,753

7.02 Bills Purchased and Discounted


Receivables in Bangladesh 7.02.01 898,022,478 1,167,451,945 898,022,478 1,167,451,945
Receivables outside Bangladesh 7.02.02 15,778,411,753 16,906,434,967 15,778,411,753 16,906,434,967
16,676,434,231 18,073,886,912 16,676,434,231 18,073,886,912

50
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
7.02.01 Receivables in Bangladesh
Inland bills purchased (IBP) 346,686,794 376,136,258 346,686,794 376,136,258
T.T. purchased 50,000 50,000 50,000 50,000
Local documentary bill purchased (LDBP) 551,285,684 791,265,687 551,285,684 791,265,687
898,022,478 1,167,451,945 898,022,478 1,167,451,945
7.02.02 Receivables outside Bangladesh
Foreign Documentary Bills Purchased (FDBP) 15,778,411,753 16,906,434,967 15,778,411,753 16,906,434,967
15,778,411,753 16,906,434,967 15,778,411,753 16,906,434,967

7.03 Loans and Advances (in and outside Bangladesh) including Bills Purchased and Discounted

In Bangladesh 7.03.01 531,903,388,109 457,698,159,541 529,451,012,547 455,153,331,012


Outside Bangladesh 7.03.02 4,256,147,659 4,426,720,872 4,256,147,659 4,426,720,872
536,159,535,768 462,124,880,413 533,707,160,206 459,580,051,884

7.03.01 In Bangladesh
Loans 380,807,299,849 336,385,275,122 378,354,924,287 333,840,446,593
Cash credits 115,437,181,005 97,788,551,204 115,437,181,005 97,788,551,204
Overdrafts 19,372,802,142 5,869,831,356 19,372,802,142 5,869,831,356
Bills purchased and discounted 16,286,105,113 17,654,501,859 16,286,105,113 17,654,501,859
531,903,388,109 457,698,159,541 529,451,012,547 455,153,331,012

7.03.02 Outside Bangladesh


Loans 1,175,210,649 1,240,105,897 1,175,210,649 1,240,105,897
Cash credits 378,190,091 355,764,525 378,190,091 355,764,525
Overdrafts 2,312,417,801 2,411,465,397 2,312,417,801 2,411,465,397
Bills purchased and discounted 390,329,118 419,385,053 390,329,118 419,385,053
4,256,147,659 4,426,720,872 4,256,147,659 4,426,720,872

7.04 Maturity Grouping of Loans and Advances


Loans and advances are repayable:
Not more than one month 47,112,500,000 36,291,238,930 47,112,500,000 36,291,238,930
More than 1 months but less than 3 months 7,510,000,000 112,617,158,975 7,510,000,000 112,617,158,975
More than 3 months but not more than 1 year 220,389,200,000 137,684,637,344 220,389,200,000 135,139,808,815
More than 1 year but not more than 5 years 220,389,200,000 89,471,650,618 220,389,200,000 89,471,650,618
More than 5 years 40,758,635,768 86,060,194,546 38,306,260,206 86,060,194,546
536,159,535,768 462,124,880,413 533,707,160,206 459,580,051,884

7.05 Maturity Grouping of Bills Purchased and Discounted

Payable within 1 month 5,769,800,000 7,299,301,895 5,769,800,000 7,299,301,895


Over 1 month but less than 3 months 6,044,000,000 8,275,929,286 6,044,000,000 8,275,929,286
Over 3 months but less than 6 months 1,681,600,000 2,498,655,731 1,681,600,000 2,498,655,731
More than 6 months 3,181,034,231 - 3,181,034,231 -
16,676,434,231 18,073,886,912 16,676,434,231 18,073,886,912
7.06 Loans and Advances on the Basis of Significant Concentration including Bills Purchased and Discounted

Advances to allied concerns of Directors - -


Advances to Managing Director and other Senior Executives 325,741,899 374,465,145
Advances to customer group (amounting more than
10% of bank's total capital): 7.06.01 246,750,900,000 104,542,900,000
Other customers 239,719,754,955 312,527,853,826
Advance to staff 46,910,763,352 42,134,832,913
533,707,160,206 459,580,051,884

7.06.01 Details of Large Loan (loans and advances allowed to each customer exceed 10% or more of Bank's capital)
Large Loans Details (loan amount more than 10% of Bank's total capital)
As on 31 December 2018 bank total capital is Tk. 54,322,801,423 and 10% of this amount is Tk. 5,432,280,142.

Name of the group Funded Loan Non-funded Loan Total


1) Annontex Group 54,484,600,000 3,383,500,000 57,868,100,000
2) Beximco Group 35,447,700,000 12,872,200,000 48,319,900,000
3) Crescent Group 32,126,800,000 1,224,500,000 33,351,300,000
4) S Alam Vergetable Oil Ltd. & Others 32,209,200,000 255,800,000 32,465,000,000
5) Bangladesh Petrolium Corporation (BPC) - 21,560,000,000 21,560,000,000
6) S Alam Refined Sugar & Others 13,929,600,000 - 13,929,600,000
7) Thermex Group 10,559,900,000 1,862,600,000 12,422,500,000
8) Ratanpur Group 12,327,900,000 - 12,327,900,000
9) Bangladesh Chemical Industries Corporation (BCIC) 4,753,500,000 6,306,900,000 11,060,400,000
10)Ranka Group 10,343,300,000 215,300,000 10,558,600,000
11)Bangladesh Agricultural Development Corporation (BADC) 10,233,400,000 - 10,233,400,000
12) Sikder Group 8,694,000,000 - 8,694,000,000
13)Chowdhury Knitwear Ltd. 6,255,700,000 327,500,000 6,583,200,000

51
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
Name of the group Funded Loan Non-funded Loan Total
14)Jamuna Group 4,878,600,000 1,615,200,000 6,493,800,000
15)Beximco Pharmaceuticals Ltd. 4,651,200,000 1,687,900,000 6,339,100,000
16)B.R Spinning Ltd. 5,855,500,000 - 5,855,500,000
246,750,900,000 51,311,400,000 298,062,300,000

No. of client 16 11
Total Funded and Non-funded liabilities 298,062,300,000 134,786,000,000
Total Classified loan therein:
Sub Standard (SS) 28,000,600,000 2,085,700,000
Doubtful (DF) 6,432,600,000 2,213,500,000
Bad/Loss (BL) 81,668,600,000 1,718,800,000
116,101,800,000 6,018,000,000
Measures taken for recovery of classified loan
Bank as a whole takes following steps to recover its classified loans and advances
i) Sending letters and reminder to customer.
ii) Recovery cell including top management level holds discussion with the clients to recover the loans.
iii) Maintaining special recovery arrangement through loan fair, client gathering, recovery campaign, etc.
iv) Legal proceedings and quick settlement.
v) Providing incentives to employees for cash recovery from classified and written-off loans.

7.07 Geographical Area-wise Loans and Advances

In Bangladesh No. of Branches


Urban 418 496,377,294,246 424,940,546,290 493,924,918,684 422,395,717,761
Rural 491 35,526,093,863 32,757,613,251 35,526,093,863 32,757,613,251
Sub total 909 531,903,388,109 457,698,159,541 529,451,012,547 455,153,331,012

Outside Bangladesh
Overseas 4 4,256,147,659 4,426,720,872 4,256,147,659 4,426,720,872
Sub total 4 4,256,147,659 4,426,720,872 4,256,147,659 4,426,720,872

Total 913 536,159,535,768 462,124,880,413 533,707,160,206 459,580,051,884

7.07.01 Loans and Advances (Division wise)


In Bangladesh
No. of Branches
Dhaka 227 371,096,757,493 324,533,839,539 368,644,381,931 321,989,011,010
Chattogram 205 92,002,400,208 69,365,290,412 92,002,400,208 69,365,290,412
Sylhet 59 3,312,281,255 2,974,708,409 3,312,281,255 2,974,708,409
Khulna 114 26,040,942,705 23,812,418,576 26,040,942,705 23,812,418,576
Barishal 42 6,940,458,635 6,324,838,651 6,940,458,635 6,324,838,651
Rajshahi 147 17,302,586,051 16,455,789,326 17,302,586,051 16,455,789,326
Rangpur 73 9,782,158,721 9,117,895,675 9,782,158,721 9,117,895,675
Mymensingh 42 5,425,803,041 5,113,378,953 5,425,803,041 5,113,378,953
Sub total 909 531,903,388,109 457,698,159,541 529,451,012,547 455,153,331,012

Outside Bangladesh
Overseas units 4 4,256,147,659 4,426,720,872 4,256,147,659 4,426,720,872
Sub total 4 4,256,147,659 4,426,720,872 4,256,147,659 4,426,720,872

Grand Total 913 536,159,535,768 462,124,880,413 533,707,160,206 459,580,051,884

7.08 Details of Security/ Collateral with the Bank


Movable/immovable assets 318,970,124,292 276,873,928,689 318,970,124,292 276,873,928,689
Government guarantee 29,530,700,000 21,497,400,000 29,530,700,000 21,497,400,000
Financial securities 21,071,504,440 8,281,296,752 21,071,504,440 8,281,296,752
Pledged and other goods 39,582,489,249 53,259,563,829 39,582,489,249 53,259,563,829
Personal guarantee 62,688,983,122 41,993,363,320 62,688,983,122 41,993,363,320
Other securities 64,315,734,665 60,219,327,823 61,863,359,103 57,674,499,294
536,159,535,768 462,124,880,413 533,707,160,206 459,580,051,884

7.09 Classification Status of Loans and Advances (As a Whole/ Combined)


Unclassified
Standard 296,081,314,197 304,688,880,413 293,628,938,635 302,144,051,884
296,081,314,197 304,688,880,413 293,628,938,635 302,144,051,884
Special Mention Account (SMA) 2,997,832,723 24,775,800,000 2,997,832,723 24,775,800,000
Special Mention Account for Restructure (SMA-RST) 57,095,925,000 56,664,700,000 57,095,925,000 56,664,700,000
60,093,757,723 81,440,500,000 60,093,757,723 81,440,500,000
Sub total 356,175,071,920 386,129,380,413 353,722,696,358 383,584,551,884

52
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017

Classified
Sub-standard 33,860,381,734 6,422,400,000 33,860,381,734 6,422,400,000
Doubtful 5,028,008,384 6,262,300,000 5,028,008,384 6,262,300,000
Bad/loss 141,096,073,730 63,310,800,000 141,096,073,730 63,310,800,000
Sub total 179,984,463,848 75,995,500,000 179,984,463,848 75,995,500,000
Grand Total 536,159,535,768 462,124,880,413 533,707,160,206 459,580,051,884
7.09.01 Classification Status of Loans and Advances (In Bangladesh)
Unclassified
Standard 292,623,889,882 300,607,552,193 290,171,514,320 298,062,723,664
292,623,889,882 300,607,552,193 290,171,514,320 298,062,723,664
SMA 2,997,832,723 24,775,800,000 2,997,832,723 24,775,800,000
SMA-RST 57,095,925,000 56,664,700,000 57,095,925,000 56,664,700,000
60,093,757,723 81,440,500,000 60,093,757,723 81,440,500,000
Sub total 352,717,647,605 382,048,052,193 350,265,272,043 379,503,223,664
Classified
Sub-standard 33,782,677,924 6,403,807,957 33,782,677,924 6,403,807,957
Doubtful 4,978,875,545 6,230,551,956 4,978,875,545 6,230,551,956
Bad/loss 140,424,187,035 63,015,747,435 140,424,187,035 63,015,747,435
Sub total 179,185,740,504 75,650,107,348 179,185,740,504 75,650,107,348
Total 531,903,388,109 457,698,159,541 529,451,012,547 455,153,331,012
7.09.02 Classification Status of Loans and Advances (Outside Bangladesh)
Unclassified
Standard 3,457,424,315 4,081,328,220 3,457,424,315 4,081,328,220
SMA - - - -
Sub total 3,457,424,315 4,081,328,220 3,457,424,315 4,081,328,220
Classified
Sub-standard 77,703,810 18,592,043 77,703,810 18,592,043
Doubtful 49,132,839 31,748,044 49,132,839 31,748,044
Bad/loss 671,886,695 295,052,565 671,886,695 295,052,565
Sub total 798,723,344 345,392,652 798,723,344 345,392,652
Total 4,256,147,659 4,426,720,872 4,256,147,659 4,426,720,872
Grand total 536,159,535,768 462,124,880,413 533,707,160,206 459,580,051,884
7.10 Industry-wise Segregation of Loans and Advances
Agriculture 20,912,900,000 16,472,070,000 20,912,900,000 16,472,070,000
Industrial (Manufacturing)
RMG 95,054,500,000 99,344,269,000 95,054,500,000 99,344,269,000
Textile 68,615,400,000 67,210,137,000 68,615,400,000 67,210,137,000
Ship building & ship breaking 4,971,100,000 5,504,400,000 4,971,100,000 5,504,400,000
Agro-based industry 23,394,300,000 15,341,865,000 23,394,300,000 15,341,865,000
Other industrial (large scale) 65,361,300,000 64,539,617,000 65,361,300,000 64,539,617,000
Other industrial (small, medium & cottage) 9,804,600,000 10,834,225,000 9,804,600,000 10,834,225,000
267,201,200,000 262,774,513,000 267,201,200,000 262,774,513,000
Industrial (service)
Construction loans 30,093,400,000 30,143,392,000 30,093,400,000 30,143,392,000
Transport & communication 3,400,600,000 3,764,944,000 3,400,600,000 3,764,944,000
Other service industries 21,574,500,000 16,140,877,000 21,574,500,000 16,140,877,000
55,068,500,000 50,049,213,000 55,068,500,000 50,049,213,000
Consumer credit 1,412,400,000 1,570,350,000 1,412,400,000 1,570,350,000
Trade & commerce 84,607,000,000 84,842,278,000 84,607,000,000 84,842,278,000
Credit to NBFI - - - -
Loans to capital market
Merchant banks - - - -
Other than merchant banks - - - -
Margin loan 2,452,375,562 2,544,828,529 - -
2,452,375,562 2,544,828,529 - -
Staff Loan 47,236,505,251 42,509,298,058 47,236,505,251 42,509,298,058
Other loans 57,268,654,955 1,362,329,826 57,268,654,955 1,362,329,826
536,159,535,768 462,124,880,413 533,707,160,206 459,580,051,884
7.11 Sector-wise Loans and Advances
Government 7.11.01 10,361,430,000 866,768,000 10,361,430,000 866,768,000
Other public 7.11.02 18,854,870,000 17,414,836,000 18,854,870,000 17,414,836,000
Private 7.11.03 506,943,235,768 443,843,276,413 504,490,860,206 441,298,447,884
536,159,535,768 462,124,880,413 533,707,160,206 459,580,051,884

7.11.01 Government
Unclassified
Standard 10,239,232,000 738,373,000 10,239,232,000 738,373,000
SMA - - - -
Sub total 10,239,232,000 738,373,000 10,239,232,000 738,373,000

Classified
Sub-standard - - - -
Bad/loss 122,198,000 128,395,000 122,198,000 128,395,000
Sub total 122,198,000 128,395,000 122,198,000 128,395,000
Total 10,361,430,000 866,768,000 10,361,430,000 866,768,000

53
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
7.11.02 Other Public
Unclassified
Standard 17,899,576,000 16,063,090,000 17,899,576,000 16,063,090,000
SMA - 1,259,042,000 - 1,259,042,000
Sub total 17,899,576,000 17,322,132,000 17,899,576,000 17,322,132,000

Classified
Sub-standard 188,751,000 - 188,751,000 -
Doubtful - - - -
Bad/loss 766,543,000 92,704,000 766,543,000 92,704,000
Sub total 955,294,000 92,704,000 955,294,000 92,704,000
Total 18,854,870,000 17,414,836,000 18,854,870,000 17,414,836,000

7.11.03 Private
Unclassified
Standard 267,942,506,197 287,887,417,413 265,490,130,635 285,342,588,884
267,942,506,197 287,887,417,413 265,490,130,635 285,342,588,884
SMA 2,997,832,723 23,516,758,000 2,997,832,723 23,516,758,000
SMA-RST 57,095,925,000 56,664,700,000 57,095,925,000 56,664,700,000
60,093,757,723 80,181,458,000 60,093,757,723 80,181,458,000
Sub total 328,036,263,920 368,068,875,413 325,583,888,358 365,524,046,884
Classified
Sub-standard 33,671,630,734 6,422,400,000 33,671,630,734 6,422,400,000
Doubtful 5,028,008,384 6,262,300,000 5,028,008,384 6,262,300,000
Bad/loss 140,207,332,730 63,089,701,000 140,207,332,730 63,089,701,000
Sub total 178,906,971,848 75,774,401,000 178,906,971,848 75,774,401,000
Total 506,943,235,768 443,843,276,413 504,490,860,206 441,298,447,884

Grand total 536,159,535,768 462,124,880,413 533,707,160,206 459,580,051,884

7.12 Movement of Classified Loans & Advances as a Whole


Opening classified loans & advances 75,995,500,000 59,359,800,000
Less:
Cash recovery 4,843,600,000 4,915,700,000
Written-off 236,400,000 123,700,000
Interest waiver 186,100,000 177,800,000
Re-scheduling, re-structuring and partial recovery 14,520,100,000 14,333,000,000
(considering classified loan as on 31-12-2017 )
19,786,200,000 19,550,200,000
56,209,300,000 39,809,600,000
Add: Newly classified loans & advances 123,775,163,848 36,185,900,000
Balance of classified loans & advances 179,984,463,848 75,995,500,000

7.13 Loans and Advances Categorized on the Basis of Following Particulars:


i) Loans considered good in respect of which 'the bank is fully secured'; 379,624,117,982 359,912,189,270
ii) Loans considered good against which the bank holds no other security than the debtor's personal guarantee;
62,688,983,122 41,993,363,320

iii) Loans considered good secured by the personal undertakings of one or more parties in addition to the
91,394,059,102 57,674,499,294
personal guarantee of the debtors;
iv) Loans adversely classified; provision not maintained there against; - -
533,707,160,206 459,580,051,884
v) Loans due by directors or officers of the bank or any of these either separately or jointly with any other
persons; 47,236,505,251 42,509,298,058
vi) Loans due from companies or firms in which the directors of the bank have interest as directors, partners or
- -
managing agents or in case of private companies as members;
vii) Maximum total amount of advances, including temporary advances made at any time during the year to
directors or managers or officers of the bank or any of them either separately or jointly with any other 47,236,505,251 42,509,298,058
persons;
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, managing agents or in the - -
case of private companies as members;

ix) Due from banking companies; - -

x) Information in respect of classified loans and advances

a) Amount of classified loans on which interest has not been charged: 141,096,073,730 63,310,800,000
i) (Decrease)/Increase in provision 7,181,600,000 4,316,200,000
ii) Amount of written off loan during the year 236,400,000 123,700,000
iii) Amount realized (including adj.) during the year against loan previously written-off: 437,200,000 1,201,100,000
Cash recovery 343,900,000 1,104,400,000
Adjustment 93,300,000 96,700,000

54
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
b) Amount of provision kept against loans classified as bad/loss as at the reporting date 28,329,500,000 21,147,900,000
c) Interest credited to the Interest Suspense Account 45,106,440,383 34,951,937,015

xi) Details of loans written off


a) Cumulative amount of written-off loans at the end of the year (b+c) 45,326,201,000 45,089,801,000
b) Cumulative amount of written-off loans (opening) 45,089,801,000 44,966,101,000
c) Amount of written-off loans during the year 236,400,000 123,700,000
d) Amount realized (including adjustment) against loan previously written-off: 13,769,300,000 13,332,100,000
Previous years 13,332,100,000 12,131,000,000
Current year 437,200,000 1,201,100,000

e) Net (outstanding) amount of written-off loan at the end of the year (a-d) 31,556,901,000 31,757,701,000
f) Amount of written-off loan for which law suit has been filled 37,579,700,000 32,658,000,000

7.14 Details of Provision for Loans and Advances


Provisions to be Maintained as per Bangladesh Bank instructions
For unclassified loan
Standard 1,802,200,000 3,276,600,000
SMA 304,300,000 1,157,400,000
2,106,500,000 4,434,000,000
For classified loan
Substandard 1,453,000,000 801,000,000
Doubtful 1,020,700,000 1,961,700,000
Bad/loss 28,329,500,000 21,147,900,000
30,803,200,000 23,910,600,000
32,909,700,000 28,344,600,000

Provision maintained
For unclassified loan 13.06.01 2,106,586,803 4,493,481,993
For classified loan 13.06.02 30,804,017,101 23,910,512,280
32,910,603,904 28,403,994,273
Provision excess/(shortfall) 903,904 59,394,273
Janata Bank maintained provision amounting to Taka 32,910 million i.e. 28.50% of required provision and deferred the remaining amount of required
provision as per terms mentioned in Bangladesh Bank letter ref: BRPD(P-1)/661/13/2019-3266 dated 25 April 2019 and considering the quick summary
report of Bangladesh Bank vide letter ref: DBI-2(UB-2)/2230/2019-810 dated 21 April 2019. Subsequently, Janata Bank received a letter from Bangladesh
Bank vide letter ref: DBI-2(UB-2)/2230/2019-858 dated 29 April 2019 to make addittional provision Taka 1,664.30 million which was classified by March
2019.

7.15 Net Loans and Advances


Gross Loans 533,707,160,206 459,580,051,884
Less: Interest Suspense 13.01 (45,106,440,383) (34,951,937,015)
Less: Provision for Loans and Advances 13.06 (32,910,603,904) (28,403,994,273)
455,690,115,919 396,224,120,596
7.16 Suits Filed by the Bank
No. of suit filed Amount
Types of suit 2018 2017 2018 2017
Artharin 3,240 3,059 89,018,100,000 61,826,000,000
Writ petition 207 253 54,315,100,000 72,267,900,000
Appeal & revision 270 246 28,899,200,000 23,873,600,000
3,717 3,558 172,232,400,000 157,967,500,000

7.17 Restructured loan as per BRPD Circular No.- 04 dated 29 January 2015
Outstanding
Status after
SL Name of Borrower Amount as on Status before Restructure
31 December 2018
Restructure

1. Thermex Group 5,378,200,000 TK 329.31 Crore Standard & TK 313.34 Crore SMA SMA
2. Jamuna Group 4,318,025,000 UC SMA
3. Annontex Group 12,158,600,000 TK 548.57 Crore Standard & TK 576.98 Crore SMA SMA
4. Beximco Group 23,806,400,000 Standard SMA
5. Ratanpur Group 6,083,600,000 Standard SMA under Writ
6. S A Group 1,182,300,000 BL SMA under Writ
7. M R Group 4,168,800,000 Standard SMA under Writ
57,095,925,000

55
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
8.00 Fixed Assets including Land, Building, Furniture & Fixtures
Cost Less Accumulated Depreciation
Property, plant, equipment
Land 6,576,184,290 6,566,184,290 6,576,184,290 6,566,184,290
Building 1,661,067,857 1,572,471,131 1,639,593,177 1,543,660,217
Furniture and fixture 713,683,779 693,927,148 704,661,957 689,106,830
Machinery & equipment 200,170,884 96,414,413 199,105,627 95,220,466
Vehicle 107,793,531 158,601,997 105,409,545 155,622,015
Computer hardware 875,665,960 961,813,328 874,079,985 960,133,390
10,134,566,301 10,049,412,307 10,099,034,581 10,009,927,208
Intangible asset
Computer software 178,696,592 299,460,703 178,009,743 298,697,537
Organizational Cost, JEC, USA 16,753,301 16,817,331 - -
195,449,893 316,278,034 178,009,743 298,697,537
10,330,016,194 10,365,690,341 10,277,044,324 10,308,624,745
Details in note - 53

9.00 Other Assets


Income generating
Investment in share of subsidiary companies 9.01 - - 4,414,207,803 4,414,207,803
- - 4,414,207,803 4,414,207,803
Non income generating
Stationery, stamps and material in stock 9.02 120,040,273 142,200,776 120,040,273 142,200,776
Interest accrued on investment 7,114,157,263 6,947,743,769 7,114,157,263 6,947,743,769
Advance deposit 71,786,775 71,490,035 30,011,775 30,127,535
Suspense account 9.03 4,596,543,993 3,800,392,558 4,567,489,692 3,771,839,228
Others 9.04 45,279,717,109 46,096,862,800 45,039,972,701 45,868,674,433
57,182,245,413 57,058,689,938 56,871,671,704 56,760,585,741
57,182,245,413 57,058,689,938 61,285,879,507 61,174,793,544

9.01 Investment in Share of Subsidiary Companies

In Bangladesh
Investment to JCIL, Dhaka (subsidiary company) 9.01.01 - - 4,274,000,000 4,274,000,000
- - 4,274,000,000 4,274,000,000
Outside Bangladesh
Investment in JEC, Italy (subsidiary company) 9.01.02 - - 58,617,803 58,617,803
Investment in JEC, USA (subsidiary company) 9.01.03 - - 81,590,000 81,590,000
- - 140,207,803 140,207,803

- - 4,414,207,803 4,414,207,803

9.01.01 Investment in Janata Capital and Investment Limited, Dhaka (subsidiary company)
Janata Capital and Investment Limited, Dhaka incorporated on 13 April 2010 vide incorporation certificate no.C-83898/10 issued by the Registrar of Joint
Stock Companies and Firms (RJSC) with 100% ownership of Janata Bank Limited having Tk. 5,000 million authorized capital and its paid-up capital is Tk.
4,274.00 million. The company starts its operations from 26 September 2010 and its main functions are issue manager, underwriting and portfolio
management.

9.01.02 Investment in Janata Exchange Company Srl, Italy (subsidiary company)


Janata Exchange Company Srl, Italy was incorporated on 18 January 2002 vide Ministry of Finance letter # Ag/Awe/e¨vswKs/kv-7/wewea-12(2) 2000 dated 3
January 2001 and letter # Ag/Awe/e¨vswKs/kv-7/12(2)2000/164 dated 27 June 2001 with 100% ownership of Janata Bank Limited having authorized capital of
ITL 1.00 Billion and its paid-up capital is Euro 600,000.

Apart from Rome Branch, JEC, Italy has another Branch in Milan, Italy, which was established vide MOF’s approval Letter # Ag/Awe/e¨vswKs bxt/kv-1 /12
/(2)/200/ 3/352 dated 24 November 2002.

9.01.03 Investment in Janata Exchange Co. Inc., New York, USA (subsidiary company)
Janata Exchange Company, USA was incorporated on 10 April 2012 vide Bangladesh Bank letter # BRPD(M)204/7/2011-342 dated 28 December 2011 and
New York State Department of Financial Services Certification no. MT 103045 with 100% ownership of Janata Bank Limited having paid-up capital is USD
1,000,000.

9.02 Stationery, Stamps and Material in Stock

Stamps 14,899,312 13,274,147 14,899,312 13,274,147


Stationery 103,938,670 127,724,338 103,938,670 127,724,338
Stock of spare parts and electrical goods 1,202,291 1,202,291 1,202,291 1,202,291
120,040,273 142,200,776 120,040,273 142,200,776

56
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
9.03 Suspense Account
Sundry debtors 479,448,505 722,065,325 450,394,204 693,511,995
Advance against TA/DA 7,229,704 5,566,116 7,229,704 5,566,116
Advance against postage 92,381 78,516 92,381 78,516
Advance for expense for new branch 787,900 1,547,910 787,900 1,547,910
Gift cheque 141,110 132,710 141,110 132,710
Legal charge 3,467,151 2,332,045 3,467,151 2,332,045
Revenue stamp 267,679 149,943 267,679 149,943
Prize bond/D.S.C/B.S.P etc. 3,073,146,541 2,302,099,603 3,073,146,541 2,302,099,603
Incentive bonus 54,304,604 60,512,297 54,304,604 60,512,297
Pension bill 250,305 12,794,800 250,305 12,794,800
Airport booth 14,188,514 9,901,372 14,188,514 9,901,372
Petty cash 143,041 7,515 143,041 7,515
Foreign Remittance 963,076,558 683,204,406 963,076,558 683,204,406
4,596,543,993 3,800,392,558 4,567,489,692 3,771,839,228

9.04 Others
Sundry assets 9.04.01 9,492,180,025 7,594,167,998 9,383,994,989 7,496,150,988
Tripura Modern Bank 29,463 29,463 29,463 29,463
General blocked account 10,441,963 10,441,963 10,441,963 10,441,963
Cash remittance 519,933,000 432,405,480 519,933,000 432,405,480
Deferred tax assets 9.04.02 8,092,935,234 8,586,616,507 8,092,935,234 8,586,616,507
Advance income tax 9.04.03 26,746,910,458 25,257,142,567 26,615,351,086 25,126,971,210
Inter branch adjustment 9.04.04 417,286,966 4,216,058,822 417,286,966 4,216,058,822
45,279,717,109 46,096,862,800 45,039,972,701 45,868,674,433

9.04.01 Sundry Assets


Advance rent paid 175,639,818 209,357,340 174,009,628 207,739,855
Adjusting account debit 4,189,159 2,526,507 4,189,159 2,526,507
DD paid without advice (Local ) 24,246,447 23,158,464 24,246,447 23,158,464
DD paid without advice (Foreign ) 294,406,563 432,640,620 294,406,563 432,640,620
DD cancelled 19,240 231,298 19,240 231,298
Transfer delivery 72,130 72,130 72,130 72,130
Excise duty 14,550 13,975 14,550 13,975
Gift cheque 7,027 12,752 7,027 12,752
Protested bill 268,087,869 263,556,228 268,087,869 263,556,228
Defective notes 23,749,565 36,420,615 23,749,565 36,420,615
Food procurement bill 896,389,333 313,693,234 896,389,333 313,693,234
Revenue stamp 1,175,144 2,435,977 1,175,144 2,435,977
Exempted interest on agri-loan 7,635,530 7,693,511 7,635,530 7,693,511
Exempted interest on waiver credit 1,413,415 1,373,668 1,413,415 1,373,668
X.P.B. /Duty draw back 17,350,885 17,350,885 17,350,885 17,350,885
Army pension (Defense) 2,807,138,727 2,385,244,352 2,807,138,727 2,385,244,352
Civil pension 82,710,800 117,059,614 82,710,800 117,059,614
Bank pension 804,129,562 506,583,247 804,129,562 506,583,247
Clearing house 72,125,174 35,579,329 72,125,174 35,579,329
Defense certificate/ Prize bond 368,972,302 278,710,505 368,972,302 278,710,505
Till money 128,500 128,500 128,500 128,500
Interest subsidy 675,661 730,701 675,661 730,701
Legal charges 907,236 890,010 907,236 890,010
Cash subsidy 1,623,808 22,455,658 1,623,808 22,455,658
Special exchange 300,327,753 144,457,033 300,327,753 144,457,033
Cash shortage 16,046 16,046 16,046 16,046
Interest free block account 56,498 56,498 56,498 56,498
Interest on loans & commission receivables 1,185,628,339 1,112,509,405 1,185,628,339 1,112,509,405
Special exchange adjusting a/c 19,115,524 19,115,525 19,115,524 19,115,525
Construction of building 36,413 435,149 36,413 435,149
Sales and purchase of WES Fund 25,245 - 25,245 -
Acrrued interest adjustment a/c 59,319,241 226,367,092 59,319,241 226,367,092
Q-Cash 1,000,000 - 1,000,000 -
Sundry 2,073,846,521 1,433,292,130 1,967,291,675 1,336,892,605
9,492,180,025 7,594,167,998 9,383,994,989 7,496,150,988

9.04.02 Deferred Tax Assets


Opening balance 01 January 8,586,616,507 8,463,552,814 8,586,616,507 8,463,552,814
Addition/(released) during the year 45.02.01 (F) (493,681,273) 123,063,693 (493,681,273) 123,063,693
Balance as at 31 December 8,092,935,234 8,586,616,507 8,092,935,234 8,586,616,507

9.04.03 Advance Income Tax


Advance Income Tax Deducted at Source 9,557,758,687 8,760,096,896 9,511,143,913 8,722,764,037
Income Tax paid in Advance 9.04.03.01 13,957,739,995 13,265,633,895 13,872,795,397 13,172,795,397
Income Tax Refundable 9.04.03.02 3,231,411,776 3,231,411,776 3,231,411,776 3,231,411,776
26,746,910,458 25,257,142,567 26,615,351,086 25,126,971,210

57
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
9.04.03.01 Income Tax Paid in Advance
Year
2010 378,782,750 378,782,750 378,782,750 378,782,750
2011 341,550,863 341,550,863 331,550,863 331,550,863
2012 3,290,000,000 3,306,414,117 3,290,000,000 3,290,000,000
2013 2,907,977,539 2,907,977,539 2,887,977,539 2,887,977,539
2014 1,820,583,839 1,820,583,839 1,793,084,853 1,793,084,853
2015 1,773,331,392 1,782,744,176 1,771,399,392 1,771,399,392
2016 2,027,580,611 2,027,580,611 2,020,000,000 2,020,000,000
2017 700,000,000 700,000,000 700,000,000 700,000,000
2018 717,933,001 - 700,000,000 -
13,957,739,995 13,265,633,895 13,872,795,397 13,172,795,397
9.04.03.02 Income Tax Refundable
Year wise break up of refundable tax:
Year Assessment year
1986 1987-88 8,920,000 8,920,000 8,920,000 8,920,000
1987 1988-89 45,483,231 45,483,231 45,483,231 45,483,231
1988 1989-90 (13,541,574) (13,541,574) (13,541,574) (13,541,574)
1989 1990-91 42,105,695 42,105,695 42,105,695 42,105,695
1990 1991-92 39,903,811 39,903,811 39,903,811 39,903,811
1991 1992-93 50,174,921 50,174,921 50,174,921 50,174,921
1992 1993-94 126,325,623 126,325,623 126,325,623 126,325,623
1993 1994-95 77,281,402 77,281,402 77,281,402 77,281,402
1994 1995-96 104,426,625 104,426,625 104,426,625 104,426,625
1995 1996-97 204,925,123 204,925,123 204,925,123 204,925,123
1996 1997-98 240,322,756 240,322,756 240,322,756 240,322,756
1997 1998-99 225,181,325 225,181,325 225,181,325 225,181,325
1998 1999-2000 278,055,805 278,055,805 278,055,805 278,055,805
1999 2000-2001 380,886,212 380,886,212 380,886,212 380,886,212
2000 2001-2002 413,111,301 413,111,301 413,111,301 413,111,301
2001 2002-2003 556,745,027 556,745,027 556,745,027 556,745,027
2002 2003-2004 284,250,246 284,250,246 284,250,246 284,250,246
2003 2004-2005 166,854,247 166,854,247 166,854,247 166,854,247
3,231,411,776 3,231,411,776 3,231,411,776 3,231,411,776
9.04.04 Inter Branch Adjustment Account
Particulars Debit Credit Net
Taka Taka Balance
In 2018
CIBTA (Bangladesh) 2,208,923,935,535 2,186,395,610,080 22,528,325,455
IBFTA (Bangladesh) 1,137,819,387,484 1,192,012,184,593 (54,192,797,109)
Online inter branch transaction (OIBT) 1,197,387,616,825 1,164,985,526,878 32,402,089,947
Overseas branches 66,945,371,100 67,265,702,427 (320,331,327)
Total 4,611,076,310,944 4,610,659,023,978 417,286,966

Subsequent position of the inter branch adjustment account are summarized below:
Debit Credit
Particulars No. of unreconciled No. of unreconciled Net Balance
entries
Taka entries
Taka

In 2018
1 to 6 months 2,136 2,340,406,484 20,340 8,165,967,919 (5,825,561,435)
6 to 12 months 628 326,883,642 8,283 3,357,679,282 (3,030,795,640)
More than 12 months 1,460 193,105,934 56,101 9,101,040,696 (8,907,934,762)
Total 4,224 2,860,396,060 84,724 20,624,687,897 (17,764,291,837)
Subsequent position of the Nostro Accounts as on 31 December 2018 are as follows:
Particulars As per our book (GL) As per their book (Statement)
Debit (USD) Credit (USD) Debit (USD) Credit (USD)
Up to 3 months - - 10,735,073 2,711,828
More than 3 months but less than 6 months - - 5,007,556 716,276
More than 6 months but less than 9 months - - 2,574,187 504,628
More than 9 months but less than 12 months - - 507,640 42,599
More than 12 months - - 1,223,347 -
Total - - 20,047,803 3,975,331

9.05 Classification of Other Assets


Unclassified 53,914,362,413 54,507,198,938 58,017,996,507 58,623,302,544
53,914,362,413 54,507,198,938 58,017,996,507 58,623,302,544
Classified
Doubtful 402,243,000 509,099,000 402,243,000 509,099,000
Bad/loss 2,865,640,000 2,042,392,000 2,865,640,000 2,042,392,000
3,267,883,000 2,551,491,000 3,267,883,000 2,551,491,000
57,182,245,413 57,058,689,938 61,285,879,507 61,174,793,544

58
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
9.06 Classification of Inter Branch Transactions
Unclassified 10,328,681,415 13,897,070,242 10,328,681,415 13,897,070,242
10,328,681,415 13,897,070,242 10,328,681,415 13,897,070,242
Classified
Doubtful 64,178,968 71,724,046 64,178,968 71,724,046
Bad/loss 127,425,504 110,911,001 127,425,504 110,911,001
191,604,472 182,635,047 191,604,472 182,635,047
10,520,285,887 14,079,705,289 10,520,285,887 14,079,705,289
Details of classified other assets shown in schedule (notes-53.00)
9.07 Provision Required for Other Assets and Inter Branch Transactions
For classified other assets:
Doubtful 201,121,500 245,643,000 201,121,500 235,069,966
Bad/Loss 2,865,640,000 2,468,456,000 2,865,640,000 2,346,296,534
Required Provision 3,066,761,500 2,714,099,000 3,066,761,500 2,581,366,500

For classified Inter branch transactions


Doubtful 32,089,484 35,862,023 32,089,484 35,862,023
Bad/Loss 127,425,504 110,911,001 127,425,504 110,911,001
Required Provision 159,514,988 146,773,024 159,514,988 146,773,024

Total required provision 3,226,276,488 2,860,872,024 3,226,276,488 2,728,139,524


Total provision maintained 3,229,035,108 2,919,035,108 3,229,035,108 2,919,035,108
Provision excess/(shortfall) 2,758,620 58,163,084 2,758,620 190,895,584

9.08 Total Classified Assets


Classified Loans and Advances 7.09 179,984,463,848 75,995,500,000 179,984,463,848 75,995,500,000
Classified Investment 6.04 187,023,453 187,023,453 187,023,453 187,023,453
Classified Other Assets 9.05 3,267,883,000 2,551,491,000 3,267,883,000 2,551,491,000
Classified Inter Branch Transactions 9.06 191,604,472 182,635,047 191,604,472 182,635,047
183,630,974,773 78,916,649,500 183,630,974,773 78,916,649,500

9.09 Total Classified Assets and Provision Maintained


Provision Excess/
Classified Amount Required amount of Provision Maintained
(Shortfall)
as on provision as on as on
as on
31 December 2018 31 December 2018 31 December 2018
31 December 2018
Classified Loans and Advances 179,984,463,848 32,909,700,000 32,910,603,904 903,904
Classified Investment 195,485,531 195,485,531 199,225,452 3,739,921
Classified Other Assets 3,267,883,000 3,066,761,500 3,069,520,120 2,758,620
Classified Inter Branch Transactions 191,604,472 159,514,988 159,514,988 -
183,639,436,851 36,331,462,019 36,338,864,464 7,402,445

10.00 Non-Banking Assets - - - -


- - - -

11.00 Borrowings from Other Banks, Financial Institutions and Agents


In Bangladesh 11.01 17,262,887,262 2,432,731,712 17,262,887,262 2,432,731,712
Outside Bangladesh 11.02 120,597,095 3,166,292,163 120,597,095 3,166,292,163
17,383,484,357 5,599,023,875 17,383,484,357 5,599,023,875

11.01 Borrowing in Bangladesh


From Bangladesh Bank 11.01.01 2,199,976,750 2,369,821,200 2,199,976,750 2,369,821,200
JBL Subordinated Bond 15,000,000,000 - 15,000,000,000 -
IDA Credit for EGBMP 62,910,512 62,910,512 62,910,512 62,910,512
17,262,887,262 2,432,731,712 17,262,887,262 2,432,731,712

11.01.01 From Bangladesh Bank


Re-finance for Loan to Unemployed Doctors 1,600,000 1,600,000 1,600,000 1,600,000
Refinance Fund from B.B. against Loans to Public Sector Jute Mills 1,650,625,000 1,782,675,000 1,650,625,000 1,782,675,000
Refinance Fund from B.B. against Jute Loans 334,100,000 375,003,000 334,100,000 375,003,000
B.B. 10 Taka Puno Orthayon Scheme 14,051,750 17,206,200 14,051,750 17,206,200
B.B. loan for Milk Production 199,600,000 193,337,000 199,600,000 193,337,000
2,199,976,750 2,369,821,200 2,199,976,750 2,369,821,200

59
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
11.02 Borrowing outside Bangladesh
(i) Credit Balances with NOSTRO Accounts
1 Standard Chartered Bank, Tokyo 76,255,822 - 76,255,822 -
2 Standard Chartered Bank, London - 24,349,971 - 24,349,971
3 Bank of Montreel, Canada - 1,945,128 - 1,945,128
4 Bank Intesa, SPA, Italy - 13,870,947 - 13,870,947
5 Janata Bank, Abudhabi - 76,081,468 - 76,081,468
6 Citi Bank, N.A., New York - 1,577,622,454 - 1,577,622,454
7 Standard Chartered Bank N.Y. - 1,466,111,849 - 1,466,111,849
8 Union Bank of Switzerland 37,967,994 - 37,967,994 -
114,223,816 3,159,981,817 114,223,816 3,159,981,817
(ii) Credit Balances with VOSTRO Accounts
1 Union Bank of India (Mumbai) 4,988,876 4,939,614 4,988,876 4,939,614
2 Rastriya Banijja Bank, Kathmandu (Nepal) 1,384,403 1,370,732 1,384,403 1,370,732
6,373,279 6,310,346 6,373,279 6,310,346
120,597,095 3,166,292,163 120,597,095 3,166,292,163

11.03 Currency-wise Grouping


Amount in foreign Exchange Rate
Currencies
currencies (2018) (Average at BDT)

ACUD 76,281 83.55 6,373,279 8,255,474 6,373,279 8,255,474


CAD - - 1,945,128 - 1,945,128
USD - - 3,119,815,771 - 3,119,815,771
YEN 99,719,903 0.76 76,255,822 - 76,255,822 -
CHF 450,632 83.55 37,967,994 - 37,967,994 -
EURO - - - 38,220,918 - 38,220,918
120,597,095 3,166,292,163 120,597,095 3,166,292,163

11.04 Security-wise Grouping


Secured (by Bangladesh Bank deposits) 2,199,976,750 2,369,821,200 2,199,976,750 2,369,821,200
Unsecured 183,507,607 3,229,202,675 183,507,607 3,229,202,675
17,383,484,357 5,599,023,875 17,383,484,357 5,599,023,875

11.05 Maturity-wise Grouping


Repayable on demand - - - -
Others (based on agreed maturity dates and periods of notice)
17,383,484,357 5,599,023,875 17,383,484,357 5,599,023,875
17,383,484,357 5,599,023,875 17,383,484,357 5,599,023,875

12.00 Deposits and Other Accounts


Current accounts and other accounts 12.01 75,606,369,265 74,071,839,820 75,547,526,438 74,079,581,511
Bills payable 12.02 4,295,257,648 4,313,683,986 4,295,257,648 4,313,683,986
Savings bank deposits 12.03 163,436,009,642 151,599,127,081 163,436,009,642 151,599,127,081
Fixed deposits 12.04 432,455,889,953 419,542,801,225 432,269,657,174 419,448,386,164
675,793,526,508 649,527,452,112 675,548,450,902 649,440,778,742

12.01 Current Accounts and Other Accounts


Current account 48,009,377,823 45,743,613,790 47,950,534,996 45,751,355,481
Overdue fixed deposits 10,066,870 13,306,727 10,066,870 13,306,727
Deposit from bank 1,198,588 10,434,602 1,198,588 10,434,602
Call deposit 8,951 1,256 8,951 1,256
Q-Cash deposit 74,302,828 81,986,025 74,302,828 81,986,025
Other account 12.01.01 27,511,414,205 28,222,497,420 27,511,414,205 28,222,497,420
75,606,369,265 74,071,839,820 75,547,526,438 74,079,581,511

12.01.01 Other Account


Sundry deposits* 23,916,754,482 22,548,021,910 23,916,754,482 22,548,021,910
Foreign currency deposits-WES 257,374,198 427,308,388 257,374,198 427,308,388
Foreign currency deposits-FCD 3,226,918,219 5,246,437,510 3,226,918,219 5,246,437,510
Convertible taka account 110,367,306 729,612 110,367,306 729,612
27,511,414,205 28,222,497,420 27,511,414,205 28,222,497,420
*Recovery of written-off loan amounting Tk. 3,499,796 has been included in sundry deposit

60
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
12.02 Bills Payable
Pay order issued 3,270,067,414 3,306,684,025 3,270,067,414 3,306,684,025
Pay slip issued 30,135,785 25,485,523 30,135,785 25,485,523
Demand draft payable 837,406,758 825,778,615 837,406,758 825,778,615
Telephonic transfer payable 2,392,470 10,871,501 2,392,470 10,871,501
Mobile transfer payable 466,690 5,038,105 466,690 5,038,105
Foreign money transfer 64,057 77,057 64,057 77,057
Home remittance scheme 21,200 28,475 21,200 28,475
Foreign remittance payable 153,962,872 139,262,785 153,962,872 139,262,785
FDD payable 740,402 457,900 740,402 457,900
4,295,257,648 4,313,683,986 4,295,257,648 4,313,683,986

12.03 Savings Bank Deposits


Savings deposit 162,885,311,649 151,127,101,279 162,885,311,649 151,127,101,279
SB-general 19,206,703 64,287,238 19,206,703 64,287,238
Gift cheque 2,766,842 2,796,661 2,766,842 2,796,661
Other deposit 12.03.01 528,724,448 404,941,903 528,724,448 404,941,903
163,436,009,642 151,599,127,081 163,436,009,642 151,599,127,081

12.03.01 Other Deposit


Resident foreign currency deposits 1,106,805 701,227 1,106,805 701,227
Micro savings deposits 714,811 714,811 714,811 714,811
JB school banking 526,902,832 403,525,865 526,902,832 403,525,865
528,724,448 404,941,903 528,724,448 404,941,903

12.04 Fixed Deposits


Fixed deposits 255,771,324,100 256,242,808,944 255,585,091,321 256,148,393,883
Special notice deposits (SND) 132,963,100,376 103,020,865,695 132,963,100,376 103,020,865,695
Deposit from banks 190,820,082 190,837,665 190,820,082 190,837,665
Convertible Taka account-STD 730,295,442 569,185,867 730,295,442 569,185,867
Non resident foreign currency deposit (NRFCD) 2,709,619,261 116,881,999 2,709,619,261 116,881,999
Various deposit scheme 12.04.01 40,090,730,692 59,402,221,055 40,090,730,692 59,402,221,055
432,455,889,953 419,542,801,225 432,269,657,174 419,448,386,164

12.04.01 Various Deposit Scheme


Deposit pension scheme (DPS) 8,498,362 10,838,897 8,498,362 10,838,897
Janata bank savings pension scheme (JBSPS) 27,804,720 40,041,152 27,804,720 40,041,152
Janata bank deposit scheme (JBDS) 12,672,170,818 12,158,239,587 12,672,170,818 12,158,239,587
Medical deposit scheme (MDS) 735,911,917 614,331,908 735,911,917 614,331,908
Education deposit scheme (EDS) 527,653,171 478,547,124 527,653,171 478,547,124
Janata bank monthly savings scheme (JBMSS) 2,174,640,393 1,717,664,707 2,174,640,393 1,717,664,707
Janata bank special deposit scheme (JBSDS) 4,253,958,111 3,679,150,228 4,253,958,111 3,679,150,228
Retirement savings scheme (RSS) 30,554,670 66,084,675 30,554,670 66,084,675
Janata Bank Limited retirement savings scheme (JBLRSS) 446,297,144 581,757,368 446,297,144 581,757,368
Janata Bank Masik Amanat Prokalpa (JBMAPro) 4,872,469,093 9,783,512,382 4,872,469,093 9,783,512,382
Janata bank double benefit scheme (JBDBS) 13,308,535,232 29,240,383,140 13,308,535,232 29,240,383,140
Janata bank monthly benefit scheme (JBMBS) 469,479,806 1,001,159,081 469,479,806 1,001,159,081
Non-resident pension scheme (NRPS) 9,204,547 3,185,374 9,204,547 3,185,374
Janata deposit scheme (JDS) 547,844,308 26,539,657 547,844,308 26,539,657
Janata hajj deposit scheme (JHDS) 5,708,400 785,775 5,708,400 785,775
40,090,730,692 59,402,221,055 40,090,730,692 59,402,221,055

12.05 Deposits and Other Accounts (Category wise)

Inter-bank deposits 192,018,670 201,272,267 192,018,670 201,272,267


Other deposits 675,601,507,838 649,326,179,845 675,356,432,232 649,239,506,475
675,793,526,508 649,527,452,112 675,548,450,902 649,440,778,742

12.06 Deposits & Other Accounts (Geographical Location wise)


In Bangladesh No. of Branches
Urban 418 531,555,208,646 508,616,689,738 531,310,133,040 508,664,275,098
Rural 491 131,067,751,873 129,642,598,127 131,067,751,873 129,642,598,127
Sub total 909 662,622,960,519 638,259,287,865 662,377,884,913 638,306,873,225

Outside Bangladesh
Overseas 4 13,170,565,989 11,268,164,247 13,170,565,989 11,133,905,517
Sub total 4 13,170,565,989 11,268,164,247 13,170,565,989 11,133,905,517

Total 913 675,793,526,508 649,527,452,112 675,548,450,902 649,440,778,742

61
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
12.06.01 Deposits and other accounts (division wise)
In Bangladesh
No. of Branches
Dhaka 226 319,643,664,774 364,472,703,025 319,398,589,168 320,030,359,849
Chattogram 205 211,245,954,475 137,081,243,250 211,245,954,475 186,636,293,903
Sylhet 59 16,933,015,980 16,741,754,652 16,933,015,980 16,741,754,652
Khulna 114 35,275,761,056 29,852,318,244 35,275,761,056 35,565,930,591
Barishal 42 12,711,118,227 12,881,149,833 12,711,118,227 12,881,149,833
Rajshahi 148 34,039,176,918 33,424,211,641 34,039,176,918 33,424,211,641
Rangpur 73 21,333,683,393 21,589,572,850 21,333,683,393 21,589,572,850
Mymensigh 42 11,440,585,696 22,216,334,370 11,440,585,696 11,437,599,906
Sub total 909 662,622,960,519 638,259,287,865 662,377,884,913 638,306,873,225
Outside Bangladesh
Overseas units 4 13,170,565,989 11,268,164,247 13,170,565,989 11,133,905,517
Sub total 4 13,170,565,989 11,268,164,247 13,170,565,989 11,133,905,517
Grand Total 913 675,793,526,508 649,527,452,112 675,548,450,902 649,440,778,742

12.07 Sector wise Deposit including Bills Payable


Presidency, prime minister office and judiciary 22,945,566,000 24,548,325,000 22,945,566,000 24,548,325,000
Autonomous and semi-autonomous bodies 52,786,023,000 45,263,656,000 52,786,023,000 45,263,656,000
Other public sector 259,585,385,000 235,554,676,000 259,585,385,000 235,554,676,000
Bank and financial institutions(public) 2,301,217,000 1,950,888,000 2,301,217,000 1,950,888,000
Private sector 338,175,335,508 342,209,907,112 337,930,259,902 342,123,233,742
675,793,526,508 649,527,452,112 675,548,450,902 649,440,778,742
12.08 Maturity-wise Grouping of Deposit
Repayable
On demand 59,496,971,206 56,288,930,061 59,444,012,661 56,288,930,061
Within one month 55,478,013,880 47,206,928,570 55,478,013,880 47,206,928,570
More than 1 month but less than 6 months 206,938,867,267 159,549,672,056 206,938,867,267 159,549,672,056
More than 6 month but less than 1 year 123,318,680,953 101,398,473,818 123,318,680,953 101,398,473,818
More than 1 year and less than 5 years 187,141,910,423 109,870,005,962 187,141,910,423 109,870,005,962
More than 5 years but less than 10 years 43,410,455,146 175,206,328,950 43,218,338,085 175,119,655,580
Over 10 years 8,627,633 7,112,695 8,627,633 7,112,695
675,793,526,508 649,527,452,112 675,548,450,902 649,440,778,742
13.00 Other Liabilities
Adjusting account credit 541,886,088 1,017,182,828 541,886,088 1,017,182,828
Death relief grant scheme 6,309,220 2,513,340 6,309,220 2,513,340
Interest suspense 13.01 45,109,025,352 34,954,521,984 45,106,440,383 34,951,937,015
Insurance fund 13.02 125,440,000 120,408,350 125,440,000 120,408,350
Provision for employee benefits 13.03 5,193,486,666 3,256,745,257 5,187,405,765 3,252,181,070
Provision for income tax 13.04 22,218,792,262 21,275,334,705 22,022,761,379 21,075,644,796
Deferred tax liability 13.05 359,336,862 798,960,923 359,834,837 798,949,640
Provision for loans and advances 13.06 33,369,859,084 28,835,492,380 32,910,603,904 28,403,994,273
Provision for off balance sheet exposures 13.07 1,010,043,137 1,210,043,137 1,010,043,137 1,210,043,137
Provision for Corporate Social Responsibility (CSR) 13.08 100,000,000 100,000,000 100,000,000 100,000,000
Provision for diminution in value of investments 13.09 599,524,438 573,524,438 199,225,452 189,225,452
Provision for other assets 13.10 3,229,035,108 2,919,035,108 3,229,035,108 2,919,035,108
Sundry payables' 13.11 7,227,884,582 5,324,459,494 7,167,123,655 5,275,853,751
Provision for others 13.12 600,464,946 271,783,225 592,062,921 268,302,149
119,691,087,745 100,660,005,169 118,558,171,849 99,585,270,909

13.01 Interest Suspense Account


Balance as at 1 January 34,954,521,984 20,634,810,025 34,951,937,015 20,444,965,411
Add/(less): Exchange fluctuation 270,056 1,016,365 270,056 1,016,365
Add: Transferred during the year 19,962,972,584 20,150,542,014 19,962,972,584 20,150,542,014
Transfer (to)/from 13.06.01 - (187,259,645) - -
54,917,764,624 40,599,108,759 54,915,179,655 40,596,523,790
Less: Recovered/Transferred to income account (9,421,093,008) (5,632,887,655) (9,421,093,008) (5,632,887,655)
Written off during the year (387,646,264) (11,699,120) (387,646,264) (11,699,120)
(9,808,739,272) (5,644,586,775) (9,808,739,272) (5,644,586,775)
Balance on 31 December 45,109,025,352 34,954,521,984 45,106,440,383 34,951,937,015

i) In Bangladesh
Balance as at 1 January 34,928,756,462 20,612,804,816 34,926,171,493 20,422,960,202
Add: Transferred during the year 19,949,930,334 20,147,510,941 19,949,930,334 20,147,510,941
Transfer (to)/from 13.06.01 - (187,259,645) - -
54,878,686,796 40,573,056,112 54,876,101,827 40,570,471,143
Less: Recovered/Transferred to income account (9,421,093,008) (5,632,887,655) (9,421,093,008) (5,632,887,655)
Written off during the year (385,036,688) (11,411,995) (385,036,688) (11,411,995)
(9,806,129,696) (5,644,299,650) (9,806,129,696) (5,644,299,650)
Balance on 31 December 45,072,557,100 34,928,756,462 45,069,972,131 34,926,171,493

62
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
ii) Outside Bangladesh
Balance as at 1 January 25,765,522 22,005,209 25,765,522 22,005,209
Add/(less): Exchange fluctuation 270,056 1,016,365 270,056 1,016,365
26,035,578 23,021,574 26,035,578 23,021,574
Add: Transferred during the year 13,042,250 3,031,073 13,042,250 3,031,073
Less: Recovered/ Transferred to income account - - - -
Written off during the year (2,609,576) (287,125) (2,609,576) (287,125)
10,432,674 2,743,948 10,432,674 2,743,948
Balance on 31 December 36,468,252 25,765,522 36,468,252 25,765,522

Total Interest Suspense Account (i+ ii) 45,109,025,352 34,954,521,984 45,106,440,383 34,951,937,015

13.02 Insurance Fund


Insurance fund for building 13.02.01 5,440,000 5,408,350 5,440,000 5,408,350
Insurance fund for cash in volt and in-transit 13.02.02 120,000,000 115,000,000 120,000,000 115,000,000
125,440,000 120,408,350 125,440,000 120,408,350
13.02.01 Insurance Fund for Building
Balance at the beginning of the year 5,408,350 5,368,788 5,408,350 5,368,788
Addition during this year 31,650 39,562 31,650 39,562
Insurance fund for building at the end of the year 5,440,000 5,408,350 5,440,000 5,408,350

13.02.02 Insurance Fund for Cash in Volt and in Transit


Balance at the beginning of the year 115,000,000 110,000,000 115,000,000 110,000,000
Addition during this year 45.00 5,000,000 5,000,000 5,000,000 5,000,000
Insurance fund for cash in volt and
120,000,000 115,000,000 120,000,000 115,000,000
in-transit at the end of the year

13.03 Provisions for Employee Benefit


Leave encashment 13.03.01 700,019,573 438,166,095 700,019,573 438,166,095
Benevolent fund 13.03.02 100,000,000 100,000,000 100,000,000 100,000,000
General provident fund (GPF) 13.03.03 324,009,442 553,224,577 324,009,442 553,224,577
Contributory provident fund (CPF) 13.03.04 22,911,249 40,391,974 19,523,391 37,851,730
Provision for superannuation fund (SF) 13.03.05 1,879,428,411 191,428,411 1,879,428,411 191,428,411
Provision for gratuity 13.03.06 765,660,955 243,516,709 762,967,912 241,492,766
Provision for incentive bonus 13.03.07 1,401,457,036 1,690,017,491 1,401,457,036 1,690,017,491
5,193,486,666 3,256,745,257 5,187,405,765 3,252,181,070
13.03.01 Movement in Leave Encashment
Balance at the beginning of the year 438,166,095 409,810,503 438,166,095 409,810,503
Addition during this year 43.00 614,000,000 481,618,836 614,000,000 481,618,836
Less: Paid during this year (352,146,522) (453,263,244) (352,146,522) (453,263,244)
Provision at the end of the year 700,019,573 438,166,095 700,019,573 438,166,095
Required provision for leave encashment 699,130,661 430,417,555 699,130,661 430,417,555
Provision excess/(shortfall) 888,912 7,748,540 888,912 7,748,540

13.03.02 Movement in Benevolent Fund


Balance at the beginning of the year 100,000,000 100,000,000 100,000,000 100,000,000
Addition during this year 43.00 100,000,000 100,000,000 100,000,000 100,000,000
Less: Transfer during this year (100,000,000) (100,000,000) (100,000,000) (100,000,000)
Provision at the end of the year 100,000,000 100,000,000 100,000,000 100,000,000
13.03.03 Movement in General Provident Fund (GPF)
Balance at the beginning of the year 553,224,577 168,406,581 553,224,577 168,406,581
Addition during this year 820,138,424 771,678,648 820,138,424 771,678,648
Less: Transfer during this year (1,049,353,559) (386,860,652) (1,049,353,559) (386,860,652)
Provision at the end of the year 324,009,442 553,224,577 324,009,442 553,224,577
13.03.04 Movement in Contributory Provident Fund (CPF)
Balance at the beginning of the year 40,391,974 10,618,275 37,851,730 8,838,398
Addition during this year 124,576,609 84,138,006 123,728,995 83,377,639
Less: Transfer during this year (142,057,334) (54,364,307) (142,057,334) (54,364,307)
Provision at the end of the year 22,911,249 40,391,974 19,523,391 37,851,730

13.03.05 Provision for superannuation fund (SF)


Balance at the beginning of the year 191,428,411 191,428,411 191,428,411 191,428,411
Less: Transfer to trustee fund - - - -
Provision made during the year 43.00 1,688,000,000 - 1,688,000,000 -
Provision at the end of the year 1,879,428,411 191,428,411 1,879,428,411 191,428,411

63
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
13.03.06 Provision for gratuity
In Bangladesh 122,145,395 20,899,955 119,452,352 18,876,012
Provision made during the year 43.00 618,000,000 200,000,000 618,000,000 200,000,000
Outside Bangladesh (overseas branches) 25,515,560 22,616,754 25,515,560 22,616,754
Provision at the end of the year 765,660,955 243,516,709 762,967,912 241,492,766

13.03.06.01 Provision Maintained & Required for Superannuation Fund and Gratuity

Provision maintained
Balance with trustee fund 13,469,190,209 14,280,002,169 13,469,190,209 14,280,002,169
SF Balance with JBL 13.03.05 1,879,428,411 191,428,411 1,879,428,411 191,428,411
Gratuity balance with JBL 13.03.06 765,660,955 243,516,709 762,967,912 241,492,766
Total fund held at the end of the year 16,114,279,575 14,714,947,289 16,111,586,532 14,712,923,346
Fund required for:
Superannuation fund (SF) in Bangladesh 16,026,552,908 13,866,047,494 16,026,552,908 13,866,047,494
Gratuity- outside Bangladesh 25,515,560 22,616,754 25,515,560 22,616,754
Total fund required for SF & Gratuity 16,052,068,468 13,888,664,248 16,052,068,468 13,888,664,248
Provision Excess/(Shortfall) 62,211,107 826,283,041 59,518,064 824,259,098

13.03.07 Provision for Incentive Bonus


Balance at the beginning of the year 1,690,017,491 1,694,187,912 1,690,017,491 1,694,187,912
Addition during this year 43.00 900,000,000 1,300,000,000 900,000,000 1,300,000,000
Less: Paid during this year (1,188,560,455) (1,304,170,421) (1,188,560,455) (1,304,170,421)
Provision at the end of the year 1,401,457,036 1,690,017,491 1,401,457,036 1,690,017,491
13.04 Provision for Tax
Provision for income tax 13.04.01 22,195,585,673 21,199,244,699 21,999,554,790 20,999,554,790
Provision for Ruler's tax (UAE) 13.04.02 23,206,589 76,090,006 23,206,589 76,090,006
22,218,792,262 21,275,334,705 22,022,761,379 21,075,644,796

13.04.01 Provision for Income Tax


Balance at the beginning of the year 21,199,244,699 19,552,276,192 20,999,554,790 19,397,054,790
Addition during this year 46.00 1,029,584,344 1,646,968,507 1,000,000,000 1,602,500,000
Adjustment during this year (33,243,370) - - -
Provision at the end of the year 22,195,585,673 21,199,244,699 21,999,554,790 20,999,554,790

Break up of provision for Income Tax (year wise)


Income year Assessment year
2003 2004-05 358,094,412 358,094,412 358,094,412 358,094,412
2004 2005-06 548,476,622 548,476,622 548,476,622 548,476,622
2006 2007-08 2,396,370,517 2,396,370,517 2,396,370,517 2,396,370,517
2007 2008-09 1,083,069,516 1,083,069,516 1,083,069,516 1,083,069,516
2008 2009-10 1,143,690,508 1,143,690,508 1,143,690,508 1,143,690,508
2009 2010-11 1,006,603,730 1,006,603,730 1,006,603,730 1,006,603,730
2010 2011-12 811,116,475 811,116,475 811,116,475 811,116,475
2011 2012-12 4,040,446,939 4,057,443,779 4,000,820,525 4,000,820,525
2012 2013-14 2,951,373,696 2,951,373,696 2,928,812,485 2,928,812,485
2013 2014-15 781,282,003 781,282,003 750,000,000 750,000,000
2014 2015-16 2,020,184,285 2,041,355,729 2,020,000,000 2,020,000,000
2015 2016-17 356,443,537 356,443,537 350,000,000 350,000,000
2016 2017-18 2,016,955,668 2,016,955,668 2,000,000,000 2,000,000,000
2017 2018-19 1,646,968,507 1,646,968,507 1,602,500,000 1,602,500,000
2018 2019-20 1,034,509,258 - 1,000,000,000 -
22,195,585,673 21,199,244,699 21,999,554,790 20,999,554,790
Income tax assessments till 2003-04 have been finalized. Assessments for the year 2005-06, 2006-07, 2007-08, 2008-09, 2009-10, 2010-11, 2011-12, 2012-
13, 2013-14, 2014-15, 2015-16, 2016-17, 2017-18 and 2019-20 are under process. Income tax provision for Tk. 1,000.00 million has been considered for
the year ended 31 December 2018 on the basis of estimated assessment made by the Tax Consultant.

13.04.02 Provision for Ruler's Tax (UAE)


Balance at the beginning of the year 76,090,006 47,635,142 76,090,006 47,635,142
Addition during this year 46.00 25,527,957 73,593,445 25,527,957 73,593,445
Add: Rate fluctuation 758,877 3,844,812 758,877 3,844,812
Add: Adjustment during the year (UAE) - 1,462,620 - 1,462,620
Adjustment during this year (79,170,251) (50,446,013) (79,170,251) (50,446,013)
Provision at the end of the year 23,206,589 76,090,006 23,206,589 76,090,006

13.05 Deferred Tax liability


Balance at the beginning of the year 798,960,923 1,306,166,223 798,949,640 1,305,576,985
Addition during the year 46.02.01 (E) (427,431,241) (493,918,249) (426,921,983) (493,340,294)
Transferred to retained earnings 22.00 (12,192,820) (13,287,051) (12,192,820) (13,287,051)
Balance at the end of the year 359,336,862 798,960,923 359,834,837 798,949,640

64
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
13.06 Provision for Loans and Advances
General provision (for unclassified) 13.06.01 2,565,841,983 4,924,980,100 2,106,586,803 4,493,481,993
Specific provision (for classified) 13.06.02 30,804,017,101 23,910,512,280 30,804,017,101 23,910,512,280
Total provision held 33,369,859,084 28,835,492,380 32,910,603,904 28,403,994,273
Required provision for loans and advances 32,909,700,000 28,344,600,000 32,909,700,000 28,344,600,000
Provision excess/(shortfall) 460,159,084 490,892,380 903,904 59,394,273

13.06.01 General Provision (for unclassified loans and advances)


In Bangladesh
Balance at the beginning of the year 4,846,339,106 4,082,958,210 4,414,840,999 3,831,740,999
Addition during the year 40.00 50,000,000 643,100,000 - 583,100,000
Interest waived and adjustment (22,242,927) (66,978,749) - -
Transfer (to)/from 13.06.02 (2,388,000,000) 187,259,645 (2,388,000,000) -
Provision at the end of the year 2,486,096,179 4,846,339,106 2,026,840,999 4,414,840,999

Outside Bangladesh
Balance at the beginning of the year 78,640,994 71,075,613 78,640,994 71,075,613
Add: Rate fluctuation 1,104,810 3,362,618 1,104,810 3,362,618
Adjustment during the year (UAE) - 631,388 - 631,388
Provision made during the year 40.00 - 3,571,375 - 3,571,375
Provision at the end of the year 79,745,804.00 78,640,994 79,745,804 78,640,994
Total provision held for unclassified loans and advances 2,565,841,983 4,924,980,100 2,106,586,803 4,493,481,993

13.06.02 Specific Provision (for classified loans and advances)


Balance at the beginning of the year 23,910,512,280 19,914,241,915 23,910,512,280 19,914,241,915
Add/(less): Exchange fluctuation 3,651,312 12,270,842 3,651,312 12,270,842
23,914,163,592 19,926,512,757 23,914,163,592 19,926,512,757
Less: Fully provided debts written off including interest waiver (316,475,373) (337,914,971) (316,475,373) (337,914,971)
23,597,688,219 19,588,597,786 23,597,688,219 19,588,597,786

Add: i. Recoveries of amounts previously written off 324,356,849 849,059,920 324,356,849 849,059,920
ii. Specific provision made during the year 40.00 4,493,972,033 3,472,854,574 4,493,972,033 3,472,854,574
iii. Transfer (to)/from 13.06.01 2,388,000,000 - 2,388,000,000 -
iv. Net charge to profit & loss account during the year - - - -
7,206,328,882 4,321,914,494 7,206,328,882 4,321,914,494
Provision at the end of the year 30,804,017,101 23,910,512,280 30,804,017,101 23,910,512,280
i) In Bangladesh
Balance at the beginning of the year 23,620,703,546 19,675,641,149 23,620,703,546 19,675,641,149
Less: i. Fully provided debts written off including interest waiver (295,822,309) (320,897,523) (295,822,309) (320,897,523)
23,324,881,237 19,354,743,626 23,324,881,237 19,354,743,626

Add: i. Recoveries of amounts previously written off 324,356,849 849,059,920 324,356,849 849,059,920
ii. Specific provision for the year : 4,141,000,000 3,416,900,000 4,141,000,000 3,416,900,000
iii. Transfer (to)/from 13.06.01 2,388,000,000 - 2,388,000,000 -
6,853,356,849 4,265,959,920 6,853,356,849 4,265,959,920
Provision held in Bangladesh at the end of the year 30,178,238,086 23,620,703,546 30,178,238,086 23,620,703,546
ii) Outside Bangladesh
Balance at the beginning of the year 289,808,734 238,600,766 289,808,734 238,600,766
Add: Exchange fluctuation 3,651,312 12,270,842 3,651,312 12,270,842
293,460,046 250,871,608 293,460,046 250,871,608
Less: Fully provided debts written off (20,653,064) (17,017,448) (20,653,064) (17,017,448)
272,806,982 233,854,160 272,806,982 233,854,160
Add: Recoveries of amounts previously written off - - - -
Specific provision for the year for Bad/Loss 352,972,033 55,954,574 352,972,033 55,954,574
352,972,033 55,954,574 352,972,033 55,954,574
Provision held outside Bangladesh at the end of the year 625,779,015 289,808,734 625,779,015 289,808,734
Total provision maintained for classified loans and advances (i+ii) 30,804,017,101 23,910,512,280 30,804,017,101 23,910,512,280

13.07 Provision for Off-balance Sheet Exposures


Balance at the beginning of the year 1,210,043,137 1,052,842,154 1,210,043,137 1,052,842,154
Add: provision made during the year 41.00 (200,000,000) 293,600,000 (200,000,000) 293,600,000
Less: provision released during the year - (136,399,017) - (136,399,017)
Provision at the end of the year 1,010,043,137 1,210,043,137 1,010,043,137 1,210,043,137
Required provision 883,350,565 1,208,819,172 883,350,565 1,208,819,172
Provision excess/(shortfall) 126,692,572 1,223,965 126,692,572 1,223,965

65
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
13.08 Provision for Corporate Social Responsibility (CSR)
Balance at the beginning of the year 100,000,000 100,000,000 100,000,000 100,000,000
Provision made during the year 45.00 9,388,640 7,956,546 9,388,640 7,956,546
Less: Paid during this year (9,388,640) (7,956,546) (9,388,640) (7,956,546)
Provision at the end of the year 100,000,000 100,000,000 100,000,000 100,000,000

13.09 Provision for Diminution in Value of Investments


Balance at the beginning of the year 573,524,438 813,524,438 189,225,452 439,225,452
Provision made during the year 44.00 26,000,000 (240,000,000) 10,000,000 (250,000,000)
Provision at the end of the year 599,524,438 573,524,438 199,225,452 189,225,452
Less: Required provision for investment 6.05 (195,485,531) (187,023,453) (195,485,531) (187,023,453)
Provision excess/(shortfall) 404,038,907 386,500,985 3,739,921 2,201,999

13.10 Provision Maintained for Other Assets


Balance at the beginning of the year 2,919,035,108 2,069,035,108 2,919,035,108 2,069,035,108
Add: Provision for classified other assets during the year 42.00 310,000,000 850,000,000 310,000,000 850,000,000
Provision at the end of the year 3,229,035,108 2,919,035,108 3,229,035,108 2,919,035,108
Less: Required provision for other assets 9.07 (3,226,276,488) (2,860,872,024) (3,226,276,488) (2,728,139,524)
Provision Excess/(Shortfall) 2,758,620 58,163,084 2,758,620 190,895,584

13.11 Sundry Payables'


Sundry creditor 113,714,967 89,258,651 102,158,388 83,335,308
Interest payable for interest bearing liabilities 6,100,074,933 4,243,894,915 6,100,074,933 4,243,894,915
Bills payable for accrued expenses 934,459,909 957,186,787 904,093,449 917,722,823
Interest accrued on JBL Subordinated bond 26,301,369 - 26,301,369 -
Agrani Bank Payable 302,693 302,693 302,693 302,693
Payable to investors 231,015 38,537 - -
Dividend payable 288,646 1,519,167 - -
Others 18,108,502 1,468,736 - -
VAT payable (JCIL) 119,472 116,143 - -
Tax payable 82,875 68,475 -
Rural housing credit programme 75,240 255,060 75,240 255,060
Bulgarian foreign trade Bank 1,340,171 1,340,171 1,340,171 1,340,171
Loan from ICB - - - -
Security deposit 7,378 7,378 - -
Interest payable to IDA credit 32,777,412 29,002,781 32,777,412 29,002,781
7,227,884,582 5,324,459,494 7,167,123,655 5,275,853,751

13.12 Provision for Others


Provision for Nostro Account 13.12.01 377,808,114 107,808,114 377,808,114 107,808,114
Provision for call loan, & misappropriations 3,557,100 3,525,458 3,557,100 3,525,458
Provision for credit card risk coverage 1,585,448 1,322,587 1,585,448 1,322,587
Provision for interest rebate to Good Borrower* 20,000,000 20,000,000 20,000,000 20,000,000
Risk coverage fund (Computer) 13.12.02 18,624,257 17,352,275 18,624,257 17,352,275
Provision for loss coverage, JEC, Italy 13.12.03 157,025,437 110,509,450 157,025,437 110,509,450
Others 21,864,590 11,265,341 13,462,565 7,784,265
600,464,946 271,783,225 592,062,921 268,302,149
* No provision has been required for rebate on interest to good borrower based on our review as per BRPD Cirular Letter No.-03 dated 16 February 2016,
BRPD circular letter No.-16 dated 30 December 2015 and BRPD circular No.-06 dated 19 March 2015. However, we are maintaining 20.00 million as
provision for interest rebate to good borrower to settle any further issue in this regard.

13.12.01 Provision for Nostro Account


Balance at the beginning of the year 107,808,114 107,808,114 107,808,114 107,808,114
Add: Provision during the year 45.00 270,000,000 - 270,000,000 -
Provision at the end of the year 377,808,114 107,808,114 377,808,114 107,808,114
Less: Required provision 101,201,410 101,201,410 375,360,818 101,201,410
Provision Excess/(Shortfall) 276,606,704 6,606,704 2,447,296 6,606,704

Summarized statement of unreconciled entries of Nostro Accounts as at 31 December 2018 are given below:
As per our book (GL) As per their book (Statement)
Particulars
Debit (USD) Credit (USD) Debit (USD) Credit (USD)
Up to 3 months - 50,516 97,136,079 99,323,271
More than 3 months but less than 6 months - 131 5,243,386 1,592,134
More than 6 months but less than 9 months - - 12,454,371 2,343,989
More than 9 months but less than 12 months - - 507,640 49,264
More than 12 months - - 1,223,347 -
Total - 50,647 116,564,823 103,308,658

66
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
13.12.02 Provision for Risk Coverage Fund (computer)

Balance at the beginning of the year 17,352,275 16,137,955 17,352,275 16,137,955


Add: Provision during the year 45.00 1,271,982 1,214,320 1,271,982 1,214,320
Provision at the end of the year 18,624,257 17,352,275 18,624,257 17,352,275

13.12.03 Provision for loss coverage, JEC, Italy

Balance at the beginning of the year 110,509,450 - 110,509,450 -


Add: Provision during the year 45.00 46,515,987 110,509,450 46,515,987 110,509,450
Provision at the end of the year 157,025,437 110,509,450 157,025,437 110,509,450

14.00 Share Capital


14.01 Authorized Capital
The authorized share capital of the Bank is Tk. 30,000,000,000 divided into 300,000,000 ordinary shares @ Tk. 100/- each.

14.02 Issued Subscribed and Fully Paid-up Capital


Opening balance 19,140,000,000 19,140,000,000
New capital injected by the Government 4,000,000,000 -
23,140,000,000 19,140,000,000

The paid-up capital of the Bank is Tk. 23,140,000,000 divided into 231,400,000 ordinary shares of Tk. 100/- each. 191,400,000 share certificates have
been issued in the name of the Government including Chairman and 12 Directors (3 Ex-Directors) of the Bank. Details of share capital are as under:
14.03 Name of Shareholders
As at 31 December 2018
Name of shareholders
No. of Shares Taka
1. Government of the People's Republic of Bangladesh
represented by Finance Secretary, Ministry of Finance 231,399,988 23,139,998,800

2. Mrs. Luna Shamsuddoha 1 100


3. Khondker Sabera Islam 1 100
4. Mr. Md. Mofazzal Husain 1 100
5. Mr. Masih Malik Chowdhury, FCS FCA 1 100
6. Mr. A. K. Fazlul Ahad 1 100
7. Mrs. Selima Ahmad 1 100
8. Mr. Mohammad Abul Kashem 1 100
9. Dr. Md. Jafar Uddin 1 100
10. Mr. Ajit Kumar Paul, FCA 1 100
11. Shaikh Md. Wahid-uz-Zaman (Ex-Director) 1 100
12. Mr. Manik Chandra Dey (Ex-Director) 1 100
13. Mr. Md. Abdul Haque (Ex- Director) 1 100
231,400,000 23,140,000,000
14.04 Break-up of Shares of Paid-up Capital
As at 31 December 2018
Particulars
No. of Shares Taka
i. Paid up capital at the time of incorporation on 2007 25,939,000 2,593,900,000
ii. Stock Dividend issued favoring Govt. as on 29.09.2009 11,561,000 1,156,100,000
iii. Right share issued favoring Govt. as on 11.12.2009 12,500,000 1,250,000,000
iv. Right share issued favoring Govt. as on 19.09.2011 31,250,000 3,125,000,000
v. Stock Dividend issued favoring Govt. as on 19.09.2011
(Permission from SEC on 02.01.2012) 28,750,000 2,875,000,000
vi. Right share issued favoring Govt. as on 29.12.2013 81,400,000 8,140,000,000
vii. Right share issued favoring Govt. as on 28.06.2018 40,000,000 4,000,000,000
231,400,000 23,140,000,000
14.05 Classification of Share Holdings
100% share owned by the Government.

14.06 Capital Adequacy


Details of the capital requirement & capital surplus/(shortfall) of the Bank as per requirement of Section 13(2) of the Bank Company Act 1991 (amended in
2013) and BRPD circular No. 35 dated 29 December 2010 and BRPD circular No. 18 dated 21 December 2014.

Tier-1 capital 14.06.01 35,352,114,537 37,239,645,798 35,381,524,529 37,243,488,680


Tier-2 capital 14.06.02 19,400,532,074 7,784,625,250 18,941,276,894 7,352,819,037
Regulatory capital 54,752,646,611 45,024,271,048 54,322,801,423 44,596,307,717
Required capital (10% of total risk weighted asset) 14.06.03 54,234,434,750 44,732,167,500 53,823,053,750 44,341,902,500
Capital surplus/(shortfall) 518,211,861 292,103,548 499,747,673 254,405,217

Capital to Risk Weighted Asset Ratio (CRAR)


CET-1 to RWA 6.52% 8.33% 6.57% 8.40%
AT-1 to RWA - - - -
Tier-I capital to RWA 6.52% 8.33% 6.57% 8.40%
Tier-II capital to RWA 3.58% 1.74% 3.52% 1.66%
10.10% 10.07% 10.09% 10.06%

67
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
14.06.01 Tier-1 Capital
Common Equity Tier-1 (CET-1) 14.06.01.01 35,352,114,537 37,239,645,798 35,381,524,529 37,243,488,680
Additional Tier-1 (AT-1) 14.06.01.02 - - - -
35,352,114,537 37,239,645,798 35,381,524,529 37,243,488,680

14.06.01.01 Common Equity Tier-1 (CET-1)


Paid-up capital 23,140,000,000 19,140,000,000 23,140,000,000 19,140,000,000
Statutory reserve 11,501,974,363 11,317,079,307 11,501,974,363 11,317,079,307
Legal reserve 208,352,419 198,613,980 208,352,419 198,613,980
Retained surplus 7,785,429,466 9,159,937,463 7,814,839,458 9,163,780,345
42,635,756,248 39,815,630,750 42,665,166,240 39,819,473,632
Less: 90% of Deferred tax asset 9.04.02 (7,283,641,711) (2,575,984,952) (7,283,641,711) (2,575,984,952)
35,352,114,537 37,239,645,798 35,381,524,529 37,243,488,680

14.06.01.02 Additional Tier-1 (AT-1) - - - -

14.06.02 Tier-2 capital


General provision on unclassified loans including OBS 3,575,885,120 6,135,023,237 3,116,629,940 5,703,525,130
Subordinated debt 15,000,000,000 - 15,000,000,000 -
Asset revaluation reserve 637,548,694 1,275,405,494 637,548,694 1,275,097,388
Revaluation reserve for securities (HFT & HTM) 121,210,370 242,420,739 121,210,370 242,420,739
Revaluation reserve for equity instrument 65,887,890 131,775,780 65,887,890 131,775,780
Others (if any item approved by Bangladesh Bank) - - - -
19,400,532,074 7,784,625,250 18,941,276,894 7,352,819,037
Total admissible Tier-2 Capital* 19,400,532,074 7,784,625,250 18,941,276,894 7,352,819,037

* Tier-2 capital can be maximum up to 4% of the total RWA or 88.89% of CET-1, whichever is higher.

14.06.03 Required Capital

Total assets (including Off-balance sheet amount) 962,139,281,537 928,027,889,510 960,790,700,027 926,870,324,762
Risk weighted assets 14.06.03.01 542,344,347,500 447,321,675,000 538,230,537,500 443,419,025,000
Required capital (10% of risk weighted assets) 54,234,434,750 44,732,167,500 53,823,053,750 44,341,902,500

14.06.03.01 Break up of Risk Weighted Assets


Credit risk:
On-balance sheet 453,197,320,000 362,072,390,000 454,282,110,000 363,068,290,000
Off-balance sheet 15,188,677,500 18,101,535,000 15,188,677,500 18,101,535,000
468,385,997,500 380,173,925,000 469,470,787,500 381,169,825,000
Market risk 25,012,700,000 26,317,500,000 19,908,500,000 21,557,100,000
Operational risk 48,945,650,000 40,830,250,000 48,851,250,000 40,692,100,000
542,344,347,500 447,321,675,000 538,230,537,500 443,419,025,000

15.00 Statutory Reserve


Opening balance 11,317,079,307 10,536,265,164 11,317,079,307 10,536,265,164
Adjustment for exchange fluctuation held in UAE branches 332,496 1,635,532 332,496 1,635,532
Add: Transferred from current year profit 22.00 184,562,560 779,178,611 184,562,560 779,178,611
Closing balance 11,501,974,363 11,317,079,307 11,501,974,363 11,317,079,307
16.00 Legal Reserve (Overseas)
Opening balance 198,613,980 162,185,364 198,613,980 162,185,364
Adjustment for exchange fluctuation 1,809,133 8,123,497 1,809,133 8,123,497
Less: Adjustment during the year (UAE) (990,002) (385,238) (990,002) (385,238)
Add: Transferred during the year 22.00 8,919,308 28,690,357 8,919,308 28,690,357
Closing balance 208,352,419 198,613,980 208,352,419 198,613,980
17.00 Assets Revaluation Reserve
Opening revaluation gain 6,066,181,584 6,084,158,183 6,066,181,584 6,084,158,183
Less: Transferred to retained earnings 22.00 (18,289,230) (17,976,599) (18,289,230) (17,976,599)
Closing balance 6,047,892,354 6,066,181,584 6,047,892,354 6,066,181,584
18.00 Foreign Currency Translation Reserve
Opening balance 233,482,825 233,482,825 233,482,825 233,482,825
Add/(less): Addition during the year - - - -
Closing balance 233,482,825 233,482,825 233,482,825 233,482,825

19.00 Revaluation Reserve for Held to Maturity (HTM)


Opening balance 104,627,214 218,399,437 104,627,214 218,399,437
Revaluation gain/(loss) 6,919,297 (197,864,736) 6,919,297 (197,864,736)
Add/(less): adjustment to deferred tax liability 1,781,290 84,092,513 1,781,290 84,092,513
Closing balance 113,327,801 104,627,214 113,327,801 104,627,214

68
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017
20.00 Revaluation Reserve for Held for Trading (HFT)
Opening balance 1,383,657,394 2,003,451,051 1,383,657,394 2,003,451,051
Revaluation gain/(loss) (79,988,727) (1,392,061,773) (79,988,727) (1,392,061,773)
Unrealized during the year 1,422,222,563 314,159,761 1,422,222,563 314,159,761
Add/(less): Adjustment to deferred tax liability (476,734,517) 458,108,355 (476,734,517) 458,108,355
Closing balance 2,249,156,713 1,383,657,394 2,249,156,713 1,383,657,394

21.00 Revaluation Reserve for Shares


Opening balance 3,755,911,382 3,050,882,039 3,755,911,382 3,050,882,039
Add/(Release during the year) (565,076,049) 783,365,937 (565,076,049) 783,365,937
Add/(less): Adjustment to deferred tax liability 56,507,605 (78,336,594) 56,507,605 (78,336,594)
Closing Balance 3,247,342,938 3,755,911,382 3,247,342,938 3,755,911,382

22.00 Retained Earnings


Opening balance 9,159,937,463 8,401,408,205 9,163,780,345 8,460,836,200
Add: Previous year adjustment 43,143,168 10,892,176 - -
Opening balance (Restated) 9,203,080,631 8,412,300,381 9,163,780,345 8,460,836,200
Add: Increase of overseas retained surplus for rate fluctuation 5,772,946 110,147,027 6,258,830 110,680,873
Less: Adjustment during the year (UAE) (8,948,512) (3,467,101) (8,948,512) (3,467,101)
Profit after tax during the year 180,746,782 2,731,725,865 248,971,176 2,686,499,082
9,380,651,847 11,250,706,172 9,410,061,839 11,254,549,054
Unrealized gain for HFT (gain for Revaluation reserve) (1,422,222,563) (314,159,761) (1,422,222,563) (314,159,761)
Dividend paid (10,000,000) (10,000,000) (10,000,000) (10,000,000)
Valuation adjustment - (990,003,630) - (990,003,630)
Transfer to statutory reserve 15.00 (184,562,560) (779,178,611) (184,562,560) (779,178,611)
Transfer to legal reserve 16.00 (8,919,308) (28,690,357) (8,919,308) (28,690,357)
Transferred from asset revaluation reserve 17.00 18,289,230 17,976,599 18,289,230 17,976,599
Transferred from deferred tax 13.05 12,192,820 13,287,051 12,192,820 13,287,051
Closing balance 7,785,429,466 9,159,937,463 7,814,839,458 9,163,780,345

23.00 Contingent Liabilities


Letter of guarantee 23.01 15,191,653,036 14,539,249,362 15,191,653,036 14,539,249,362
Irrevocable letter of credit 23.02 73,143,403,479 99,970,797,789 73,143,403,479 99,970,797,789
Bills for collection 23.03 6,409,167,533 6,371,870,054 6,409,167,533 6,371,870,054
94,744,224,048 120,881,917,205 94,744,224,048 120,881,917,205

* Party wise off balance sheet exposure (non funded loan concentration) is given in note no. 7.06.01

23.01 Letter of Guarantee


Claims lodged with the bank company, which is
not recognized as loan - - - -
Money for which the bank is contingently liable in
respect of guarantee issued favoring:
Director - - - -
Government 707,876,236 682,370,578 707,876,236 682,370,578
Bank & other financial institutions 4,254,849,722 3,211,805,200 4,254,849,722 3,211,805,200
Others 10,228,927,078 10,645,073,584 10,228,927,078 10,645,073,584
15,191,653,036 14,539,249,362 15,191,653,036 14,539,249,362

23.02 Irrevocable letter of credit


(i) Government
Domestic - - - -
Overseas 1,235,740,000 1,304,450,000 1,235,740,000 1,304,450,000
1,235,740,000 1,304,450,000 1,235,740,000 1,304,450,000
Less: Margin - - - -
Sub-total 1,235,740,000 1,304,450,000 1,235,740,000 1,304,450,000
(ii) Bank and Other Financial Institutions
Domestic - - - -
Overseas - - - -
- - - -
Less: Margin - - - -
Sub-total - - - -
(iii)Others
Domestic 6,244,555,003 8,389,530,645 6,244,555,003 8,389,530,645
Overseas 65,663,108,476 90,276,817,144 65,663,108,476 90,276,817,144
71,907,663,479 98,666,347,789 71,907,663,479 98,666,347,789
Less: Margin - - - -
Sub-total 71,907,663,479 98,666,347,789 71,907,663,479 98,666,347,789
Total (i+ii+iii) 73,143,403,479 99,970,797,789 73,143,403,479 99,970,797,789

23.03 Bills for Collection


Payable in Bangladesh 23.03.01 447,718,908 601,764,780 447,718,908 601,764,780
Payable outside Bangladesh 23.03.02 5,961,448,625 5,770,105,274 5,961,448,625 5,770,105,274
6,409,167,533 6,371,870,054 6,409,167,533 6,371,870,054

69
Amount in Taka
Ref. Consolidated Bank
Note
2018 2017 2018 2017

23.03.01 Payable in Bangladesh (divisional office-wise)


Dhaka south 327,386,089 188,598,195 327,386,089 188,598,195
Dhaka north 49,508,788 254,361,262 49,508,788 254,361,262
Chattogram 9,985,651 7,445,982 9,985,651 7,445,982
Sylhet - 57,017 - 57,017
Khulna 2,156,336 33,500,497 2,156,336 33,500,497
Barishal 1,404,210 4,403,202 1,404,210 4,403,202
Rajshahi 28,111,604 62,367,999 28,111,604 62,367,999
Rangpur 12,002,709 15,881,343 12,002,709 15,881,343
Cumilla 2,224,029 11,597,171 2,224,029 11,597,171
Mymensingh 1,133,663 1,356,238 1,133,663 1,356,238
Faridpur 2,825,799 3,211,210 2,825,799 3,211,210
Noakhali 10,980,030 18,984,664 10,980,030 18,984,664
447,718,908 601,764,780 447,718,908 601,764,780

23.03.02 Payable outside Bangladesh (divisional office-wise)


Dhaka south 4,708,317,324 4,058,244,446 4,708,317,324 4,058,244,446
Dhaka north 719,563,219 635,900,327 719,563,219 635,900,327
Chattogram 251,470,801 485,828,401 251,470,801 485,828,401
Sylhet 836,487 836,487 836,487 836,487
Cumilla - - - -
Khulna 168,120,400 383,759,400 168,120,400 383,759,400
Barishal 5,515,100 8,726,000 5,515,100 8,726,000
Rajshahi 65,787,341 64,681,613 65,787,341 64,681,613
Rangpur - 1,189,000 - 1,189,000
Mymensingh - - - -
Faridpur - 6,216,000 - 6,216,000
Noakhali - - - -
5,919,610,672 5,645,381,674 5,919,610,672 5,645,381,674

Overseas branches 41,837,953 124,723,600 41,837,953 124,723,600


5,961,448,625 5,770,105,274 5,961,448,625 5,770,105,274

70
Amount in Taka
Ref.
Consolidated Bank
Note
2018 2017 2018 2017

24.00 Income Statement

A. Income:
Interest, discount and similar income 43,690,241,460 42,603,277,281 43,639,987,777 42,547,921,361
Dividend income ordinary shares 515,517,056 598,646,318 522,599,243 539,435,510
Dividend income preference share - 23,660,490 - 23,660,490
Fees, commission and brokerage 862,595,603 961,758,231 827,065,410 920,124,101
Gain less losses arirising from dealing securities 2,037,264,013 3,991,260,828 2,036,324,842 3,990,705,023
Gain less losses arising from investment securities 1,756,224,573 2,579,995,529 1,676,703,208 2,449,416,397
Income from non-banking assets - - - -
Other operating income 2,001,850,573 1,998,974,808 2,002,163,919 2,000,706,200
Profit less losses on interest rate changes - - - -
50,863,693,278 52,757,573,485 50,704,844,399 52,471,969,082

B. Expenses
Interest, fees and commission 26,973,734,985 27,095,656,917 26,972,085,716 27,093,672,662
Administrative expenses 11,486,515,509 11,818,969,656 11,387,596,074 11,729,852,412
Other operating expenses 1,595,549,900 1,465,132,080 1,570,006,982 1,435,710,814
Depreciation on banking assets including amortization 992,080,749 849,219,582 986,194,184 843,255,279
41,047,881,143 41,228,978,235 40,915,882,956 41,102,491,167

25.00 Interest Income

Interest on loans and advances 25.01 32,242,487,515 30,016,137,996 32,192,233,832 29,960,782,076


Interest on call loans and balance with banks 2,296,424,582 1,184,829,820 2,296,424,582 1,184,829,820
34,538,912,097 31,200,967,816 34,488,658,414 31,145,611,896

25.01 Interest on Loans and Advances

Loan including small loans 10,988,735,752 11,286,268,880 10,938,482,069 11,230,912,960


Loan against import merchandise 14,566,158 24,541,863 14,566,158 24,541,863
Loan against trust receipts 2,097,366,155 2,050,747,621 2,097,366,155 2,050,747,621
Packing credit 1,173,350,856 803,044,380 1,173,350,856 803,044,380
Overdrafts 1,140,940,333 781,133,432 1,140,940,333 781,133,432
Cash credits 7,328,632,361 7,926,582,028 7,328,632,361 7,926,582,028
Penal interest on loans & advances 419,541,557 262,444,954 419,541,557 262,444,954
Payment against document (PAD) 7,068,426,937 3,677,182,463 7,068,426,937 3,677,182,463
Interest miscellaneous 1,415,415,549 1,162,760,120 1,415,415,549 1,162,760,120
Interest on foreign currency 121,862,030 904,714 121,862,030 904,714
Interest on credit card 5,083,273 5,141,945 5,083,273 5,141,945
Special notice 1,978,286 284,980,436 1,978,286 284,980,436
Inland Bills Purchased (IBP) 27,377,689 111,807,994 27,377,689 111,807,994
Foreign Bills Purchased (FBP) 306,473,707 1,118,479,744 306,473,707 1,118,479,744
Penal Interest on Loan against DPS/SPS 104,712,806 340,051,611 104,712,806 340,051,611
Penal Interest Loan against on FDR 20,040,908 163,340,660 20,040,908 163,340,660
Penal interest on Loan against JBMSS 7,968,958 3,427,254 7,968,958 3,427,254
Interest on Q-Cash overdraft 14,200 13,297,897 14,200 13,297,897
32,242,487,515 30,016,137,996 32,192,233,832 29,960,782,076

26.00 Interest Paid on Deposits and Borrowings etc.

Interest paid on deposits 26.01 26,759,173,848 26,972,095,488 26,757,524,579 26,970,488,078


Interest paid on borrowings 26.02 209,245,638 118,307,142 209,245,638 117,930,297
Discount paid 1,540,868 1,479,656 1,540,868 1,479,656
Interest on IDA credit 3,774,631 3,774,631 3,774,631 3,774,631
26,973,734,985 27,095,656,917 26,972,085,716 27,093,672,662

26.01 Interest Paid on Deposits

Interest paid on savings bank deposits 3,711,586,392 3,415,303,916 3,711,586,392 3,415,303,916


Interest paid on fixed deposits 13,656,106,722 13,431,068,883 13,654,457,453 13,429,461,473
Interest paid on Short Notice Deposit (SND) 2,904,660,660 2,593,936,474 2,904,660,660 2,593,936,474
Interest paid on G.P.F/C.P.F 1,054,968,063 960,886,589 1,054,968,063 960,886,589
Interest paid to various deposit scheme 26.01.01 5,386,519,944 6,483,537,099 5,386,519,944 6,483,537,099
Interest paid on other deposits 26.01.02 45,332,067 87,362,527 45,332,067 87,362,527
26,759,173,848 26,972,095,488 26,757,524,579 26,970,488,078

71
Amount in Taka
Ref.
Consolidated Bank
Note
2018 2017 2018 2017
26.01.01 Interest Paid to Various Deposit Scheme
Interest paid on DPS 12,605,635 22,573,580 12,605,635 22,573,580
Interest paid on JBSPS 2,482,304 3,146,542 2,482,304 3,146,542
Interest paid on JBDS 1,039,602,410 878,773,213 1,039,602,410 878,773,213
Interest paid on MDS 54,257,633 40,406,686 54,257,633 40,406,686
Interest paid on EDS 40,155,576 35,491,013 40,155,576 35,491,013
Interest paid on JBMSS 156,513,893 123,392,155 156,513,893 123,392,155
Interest paid on JBSDS 355,977,044 295,937,721 355,977,044 295,937,721
Interest paid on RSS 13,027,954 18,391,483 13,027,954 18,391,483
Interest paid on JBLRSS 59,861,412 65,751,585 59,861,412 65,751,585
Interest paid on JBMAPro. 754,838,831 1,303,925,949 754,838,831 1,303,925,949
Interest paid on JBDBS 2,824,891,898 3,535,739,987 2,824,891,898 3,535,739,987
Interest paid on JBMBS 57,752,882 158,188,682 57,752,882 158,188,682
Interest paid on NRPS 932,240 117,777 932,240 117,777
Interest paid on JDS 13,620,232 1,700,726 13,620,232 1,700,726
5,386,519,944 6,483,537,099 5,386,519,944 6,483,537,099

26.01.02 Interest Paid to Other Deposits


Interest paid on cash security 352,972 4,560,089 352,972 4,560,089
Interest paid on N.R.F.C.D. 33,927,539 35,098,836 33,927,539 35,098,836
Interest paid on gift cheque 10,741 8,919 10,741 8,919
Interest paid on Q-cash 3,132,391 815,258 3,132,391 815,258
Interest paid on L/C and L/G margin 920,514 12,300 920,514 12,300
Interest paid on call deposit - 3,995 - 3,995
Cost of micro savings deposits - 1,567,396 - 1,567,396
Cost of collectors cash security - 4,886,109 - 4,886,109
Interest paid on school banking 3,074,900 4,970,420 3,074,900 4,970,420
Interest paid on others 3,913,010 35,439,205 3,913,010 35,439,205
45,332,067 87,362,527 45,332,067 87,362,527
26.02 Interest Paid on Borrowings
Bangladesh bank borrowings 123,971,511 116,572,249 123,971,511 116,572,249
Other banks borrowings 45,674,653 1,576,845 45,674,653 1,200,000
Interest paid on JBL Subordinate Bond 26,301,369 - 26,301,369 -
Interest on REPO 13,298,105 158,048 13,298,105 158,048
209,245,638 118,307,142 209,245,638 117,930,297

27.00 Investment Income


Interest on government securities 7,420,426,234 10,542,743,874 7,420,426,234 10,542,743,874
Dividend on shares 515,517,056 622,306,808 522,599,243 563,096,000
Other investment income 1,756,224,573 2,579,995,529 1,676,703,208 2,449,416,397
Interest on bonds 1,571,656,485 617,616,252 1,571,656,485 617,616,252
Interest on reverse REPO 159,246,644 241,949,339 159,246,644 241,949,339
11,423,070,992 14,604,611,802 11,350,631,814 14,414,821,862

28.00 Commission, Exchange and Brokerage


Commission 851,587,963 947,561,933 816,057,770 905,927,803
Net Exchange gain 28.01 2,037,264,013 3,991,260,828 2,036,324,842 3,990,705,023
Brokerage 11,007,640 14,196,298 11,007,640 14,196,298
2,899,859,616 4,953,019,059 2,863,390,252 4,910,829,124

28.01 Net Exchange Gain

Exchange Gain
Commmission LC -Foreign 793,890,426 963,163,830 793,890,426 963,163,830
Commmission LG -Foreign 10,663,145 38,205,450 10,663,145 38,205,450
Exchange-Pound 59,856,635 27,656,963 59,856,635 27,656,963
Exchange-Dollar 249,588,114 796,445,306 248,648,943 795,889,501
Exchange-Other Currencies 428,125,696 2,083,365,772 428,125,696 2,083,365,772
Commission Miscellaneous 96,071,235 100,192,485 96,071,235 100,192,485
Commission I.C.A LCs 19,979,617 25,049,270 19,979,617 25,049,270
Exchange Income (WES) 11,963,664 4,651,799 11,963,664 4,651,799
Exchange Earning (General) 505,965,553 - 505,965,553 -
2,176,104,085 4,038,730,875 2,175,164,914 4,038,175,070
Exchange Loss (138,840,072) (47,470,047) (138,840,072) (47,470,047)
2,037,264,013 3,991,260,828 2,036,324,842 3,990,705,023

72
Amount in Taka
Ref.
Consolidated Bank
Note
2018 2017 2018 2017
29.00 Other Operating Income
Rent 24,955,657 10,260,846 24,955,657 10,260,846
Computer - 976 - 976
Incidental charge recoveries 4,384,842 11,461,003 4,384,842 11,461,003
Miscellaneous earnings 745,848,691 771,849,933 746,162,037 773,581,325
Postage recoveries 15,512,555 8,037,749 15,512,555 8,037,749
BACH charge 1,806,509 1,219,914 1,806,509 1,219,914
Trunk call & SWIFT charges 10,125,592 17,265,560 10,125,592 17,265,560
Write off loan recovery 16,000,204 207,634,822 16,000,204 207,634,822
Service charge on rural credit 9,934,373 4,166,129 9,934,373 4,166,129
Account maintenance fee 964,767,010 921,586,164 964,767,010 921,586,164
Rebate 15,404,434 19,820,033 15,404,434 19,820,033
NID verification charge 5,508,224 718,925 5,508,224 718,925
Card closing fee 2,000 250 2,000 250
Pin reissue fee 1,041,627 1,253,996 1,041,627 1,253,996
SMS notification charge 185,431,973 22,408,278 185,431,973 22,408,278
Card maintenance fee 1,126,882 1,256,773 1,126,882 1,256,773
Revaluation of investment, gold, silver etc. - 33,457 - 33,457
2,001,850,573 1,998,974,808 2,002,163,919 2,000,706,200

30.00 Salary & Allowances


Basic salary 4,627,523,689 4,745,192,721 4,542,601,811 4,680,109,585
Allowances 2,383,601,065 2,447,262,027 2,393,787,986 2,447,262,027
Festival bonus 762,461,505 769,975,265 758,944,825 765,720,313
Leave salary encashment 7,931,160 9,848,835 7,931,160 9,848,835
Pension & gratuity 549,666,485 692,933,544 549,666,485 692,933,544
Lunch subsidy 558,957,071 609,868,641 558,957,071 609,868,641
Provident fund 629,430,206 594,463,976 629,430,206 594,463,976
Welfare & recreation 220,334,217 203,227,724 220,334,217 203,184,709
Medical expenses 417,924 441,155 417,924 441,155
9,740,323,322 10,073,213,888 9,662,071,685 10,003,832,785

31.00 Rent, Taxes, Insurance and Electricity etc.

Rent, rates & taxes 739,019,508 702,665,478 734,419,267 698,157,338


Insurance 234,489,608 319,116,283 234,436,736 319,052,165
Lighting 187,836,636 169,713,849 187,836,636 169,374,409
1,161,345,752 1,191,495,610 1,156,692,639 1,186,583,912
32.00 Legal Expenses

Legal charges 30,120,503 21,632,577 29,408,657 21,123,814


Stamps, power of attorney & notary public expenses 4,616,574 6,222,399 4,616,574 6,222,399
34,737,077 27,854,976 34,025,231 27,346,213

33.00 Postage, Stamp, Telecommunication etc.

Postage 6,404,444 1,859,209 6,388,455 1,848,615


Telegram/Telex/TP 627,580 2,901 627,580 2,901
Telephone/Trunk Call (Office) 12,997,249 12,502,625 12,938,735 12,449,328
Telephone/Trunk Call (Residence) 2,703,597 2,855,380 2,703,597 2,855,380
Internet/E-mail/Internet Fax/SWIFT 235,286,253 239,407,626 235,027,353 239,140,126
Others 667,934 367,693 667,934 353,293
258,687,057 256,995,434 258,353,654 256,649,643

34.00 Stationery, Printings and Advertisements etc.

Office stationery 29,254,551 32,697,180 29,179,394 32,639,345


Security stationery 36,783,892 32,289,871 36,783,892 32,289,871
Computer stationery 85,040,165 83,371,736 84,969,799 83,284,371
Petty stationery 32,032,446 30,840,114 31,857,871 30,531,434
Advertisement 75,528,402 59,366,412 74,990,902 59,020,412
258,639,456 238,565,313 257,781,858 237,765,433

35.00 Chief Executives Salary and Fees

Basic salary 6,412,251 4,413,527 3,300,000 2,954,032


Allowances 11,686,921 12,054,312 1,500,000 1,342,742
18,099,172 16,467,839 4,800,000 4,296,774

73
Amount in Taka
Ref.
Consolidated Bank
Note
2018 2017 2018 2017
36.00 Directors' Fees
Total fees paid for attending board meeting 3,737,666 4,090,944 3,040,000 3,192,000
Total fees paid for executive committee meeting 280,000 280,000 280,000 280,000
Total fees for attending audit committee meeting 712,000 608,000 712,000 608,000
Total fees paid for attending risk management committee meeting 392,000 264,000 392,000 264,000
Honorarium for Chairman 301,071 360,000 301,071 360,000
5,422,737 5,602,944 4,725,071 4,704,000

Note: Fee of the Chairman & Directors is Taka 8,000 per meeting as per BRPD Circular Letter No. 11 Dated 04 October 2015.
Monthly honorarium for chairman is maximum 30,000 Taka as per MoF letter no. 53.00.0000.321.45.002.15-221 Dated 22 September 2016.
No other financial benefits are extended to Board of Directors [as per section 18(1) of the Banking Companies Act (Amendment) 2013] excluding above fees.

37.00 Auditors' Fees

Statutory audit (Bangladesh) 5,020,000 5,202,500 4,905,000 5,102,500


Statutory audit (UAE ) 4,240,936 3,571,152 4,240,936 3,571,152
9,260,936 8,773,652 9,145,936 8,673,652

38.00 Depreciation, Repair and Maintenance

i) Depreciation:
Furniture & fixtures 101,978,954 84,381,352 100,141,942 81,596,471
Vehicles 50,808,690 29,924,907 50,212,694 29,179,911
Machinery & equipment's 47,554,179 41,814,079 47,315,390 41,567,934
Computer hardware 335,995,372 297,430,324 335,659,384 297,073,868
Property 45,938,496 39,654,638 45,009,000 39,484,555
582,275,691 493,205,300 578,338,410 488,902,739

ii) Amortization
Computer software 124,460,175 122,845,975 124,383,858 122,761,179
Organizational Cost, JEC, USA 369,824 301,615 - -
124,829,999 123,147,590 124,383,858 122,761,179

iii) Repair and Maintenance

Furniture & fixtures 9,124,007 8,727,011 8,981,355 8,625,682


Vehicles 14,984,081 13,398,422 14,820,158 13,184,025
Machinery & equipment's 53,244,216 20,806,613 53,077,898 20,725,533
Premises 34,252,825 31,860,827 34,252,825 31,860,827
Buildings 418,494 - 418,494 -
Computers 168,904,460 154,164,874 168,885,210 154,164,874
ATM maintenance & software support 4,046,976 3,908,945 3,035,976 3,030,420
284,975,059 232,866,692 283,471,916 231,591,361

Total depreciation, amortization, repairs &


maintenance (i+ii+iii) 992,080,749 849,219,582 986,194,184 843,255,279

39.00 Other Operating Expenses


Entertainment 111,054,745 103,420,677 110,189,431 102,504,314
Car expenses 321,739,297 323,226,963 321,368,492 323,226,963
Subscription 31,732,106 29,507,927 31,534,106 28,596,652
Donation 14,145,401 16,684,937 14,145,401 16,684,937
Travelling 104,810,989 97,183,945 104,810,989 97,084,883
Cartage & freight 96,907,755 90,641,850 96,907,755 90,641,850
Miscellaneous 178,533,994 117,761,046 155,685,302 98,329,978
Business development 81,841,151 77,941,238 81,489,347 77,329,767
Cash carrying charges 21,175,241 21,017,727 21,175,241 21,017,727
Outsourcing security expenses 502,672,201 467,337,105 502,672,201 467,337,105
Training expenses 96,306,107 79,240,123 96,268,107 79,211,123
Head office expenses (UAE branches) 32,361,812 32,250,397 32,361,812 32,250,397
Computer 1,348,701 1,495,118 1,348,701 1,495,118
Loss on sale of asset 50,097 5,504,972 50,097 -
CDBL charges 870,303 1,918,055 - -
1,595,549,900 1,465,132,080 1,570,006,982 1,435,710,814

40.00 Provision for Loans and Advances

For unclassified loans 13.06.01 50,000,000 646,671,375 - 586,671,375


For classified loans and advances 13.06.02 4,493,972,033 3,472,854,574 4,493,972,033 3,472,854,574
4,543,972,033 4,119,525,949 4,493,972,033 4,059,525,949

74
Amount in Taka
Ref.
Consolidated Bank
Note
2018 2017 2018 2017
41.00 Provision for Off-balance Sheet Exposures 13.07

Provision made /(released) during the year (UAE) - - - -


Provision made /(released) during the year (Bangladesh) (200,000,000) 293,600,000 (200,000,000) 293,600,000
(200,000,000) 293,600,000 (200,000,000) 293,600,000

42.00 Provision for Other Assets


Provision for other assets 13.10 310,000,000 850,000,000 310,000,000 850,000,000
310,000,000 850,000,000 310,000,000 850,000,000

43.00 Provision for Employee Benefits


Provision for leave encashment 13.03.01 614,000,000 481,618,836 614,000,000 481,618,836
Provision for benevolent fund 13.03.02 100,000,000 100,000,000 100,000,000 100,000,000
Provision for superannuation fund 13.03.05 1,688,000,000 - 1,688,000,000 -
Provision for gratuity 13.03.06 618,000,000 200,000,000 618,000,000 200,000,000
Provision for incentive bonus 13.03.07 900,000,000 1,300,000,000 900,000,000 1,300,000,000
3,920,000,000 2,081,618,836 3,920,000,000 2,081,618,836

44.00 Provision for Diminution in Value of Investments


Provision for diminution in value of investments 13.09 26,000,000 (240,000,000) 10,000,000 (250,000,000)
26,000,000 (240,000,000) 10,000,000 (250,000,000)
45.00 Other Provisions
Provision for insurance fund 13.02.02 5,000,000 5,000,000 5,000,000 5,000,000
Provision for CSR 13.08 9,388,640 7,956,546 9,388,640 7,956,546
Provision for Nostro account 13.12.01 270,000,000 - 270,000,000 -
Provision for risk coverage fund for Computer 13.12.02 1,271,982 1,214,320 1,271,982 1,214,320
Provision for Loss Coverage, JEC, Italy 13.12.03 46,515,987 110,509,450 46,515,987 110,509,450
332,176,609 124,680,316 332,176,609 124,680,316

46.00 Provision for Taxation


Provision for current tax
In Bangladesh 13.04.01 1,029,584,344 1,646,968,507 1,000,000,000 1,602,500,000
Outside Bangladesh 13.04.02 25,527,957 73,593,445 25,527,957 73,593,445
1,055,112,301 1,720,561,952 1,025,527,957 1,676,093,445
Deferred tax liabilities/(assets) 46.01 (352,195,590) (153,117,668) (351,686,332) (152,539,713)
702,916,711 1,567,444,284 673,841,625 1,523,553,732

46.01 Provision for Current Tax in Bangladesh


Required provision for current tax 13.04.01 1,029,584,344 1,646,968,507 1,000,000,000 1,602,500,000
1,029,584,344 1,646,968,507 1,000,000,000 1,602,500,000

46.02 Deferred Tax Liabilities/(Assets)


Deferred tax assets have been recognized and measured as per BAS-12: Income Taxes .
Deferred tax liabilities recognized during the period -
45.02.01
Deferred tax assets recognized during the period
(A+F) (351,686,332) (152,539,713)
(351,686,332) (152,539,713)

46.02.01 Deferred Tax Presentation in the Statement of Financial Position (Balance Sheet)
Recognition/ Recognition/
realization in current realization in last
year year
A. Taxable/(Deductible) temporary differences
Property and equipment (36,287,956) (4,768,629) (272,159,272) (170,766,478)
Provision for superannuation fund (670,414,290) - (1,879,428,411) (191,428,411)
Provision for gratuity fund (202,552,739) (14,428,693) (762,967,912) (241,492,766)
Provision for leave encashment (93,787,239) (12,051,127) (700,019,573) (438,166,095)
Provision for incentive bonus 157,674,619 1,772,429 (1,401,457,036) (1,690,017,491)
(5,016,032,204) (2,731,871,241)
40.00% 42.50%
Deferred tax (assets)/liabilities at the end of the period (845,367,605) (29,476,020) (2,006,412,882) (1,161,045,277)

B. Taxable/(Deductible) temporary differences


Revaluation Reserve for Buildings (27,797,402) (13,287,051) 593,701,225 624,183,275
Revaluation Reserve for HTM (1,781,290) (84,092,513) 188,879,667 181,960,370
Revaluation Reserve for HFT 476,734,517 (458,108,355) 3,748,594,522 2,406,360,686
4,531,175,414 3,212,504,331
40.00% 42.50%
Deferred tax (assets)/liabilities at the end of the period 447,155,825 (555,487,919) 1,812,470,166 1,365,314,341

75
Amount in Taka
Ref.
Consolidated Bank
Note
2018 2017 2018 2017

C. Taxable temporary differences


Revaluation Reserve for land - - 5,911,903,000 5,911,903,000
Revaluation Reserve for shares (56,507,605) 78,336,594 3,608,158,818 4,173,234,869
9,520,061,818 10,085,137,869
Applicable rate applied
Deferred tax liabilities at the end of the period (56,507,605) 78,336,594 538,172,972 594,680,577

D. Deferred tax (assets)/liabilities at the end of the period (A+B+C) (454,719,385) (506,627,345) 344,230,256 798,949,640

E. Deferred tax (assets)/liabilities at the end of the period except deductible temporay difference on Revaluaation Reserve for Buildings
(426,921,983) (493,340,294) 372,027,658 812,236,691
* According to para 74(b) of IAS-12 and BRPD Circular No.-11 dated 12 December 2011, deferred tax assets and deferred tax liabilities has been rearranged.

F. (Deductible) temporary differences from Specific Provision

Provision for classified loans and advances 493,681,273 (123,063,693) (20,232,338,086) (20,203,803,546)
40.00% 42.50%
Deferred tax (assets)/liabilities at the end of the period 493,681,273 (123,063,693) (8,598,743,687) (8,586,616,507)

47.00 Assets Pledged as Security for Liability of the Bank


Treasury bills and bond to Bangladesh bank for Repo - - - -
- - - -
No assets in pledged as security for liability of the bank

48.00 Earnings Per Share

Net profit after tax 180,746,782 2,731,725,865 248,971,176 2,686,499,082


Weighted average number of ordinary shares
48.01
outstanding 211,893,151 191,400,000 211,893,151 191,400,000
Earnings per share 0.85 14.27 1.17 14.04

48.01 Weighted Average Number of Ordinary Shares Outstanding

191,400,000 Ordinary Shares outstanding for 365 days 191,400,000 191,400,000 191,400,000 191,400,000
40,000,000 Ordinary Shares outstanding for 187 days 20,493,151 - 20,493,151 -
211,893,151 191,400,000 211,893,151 191,400,000

Janata Bank Limited issued 40,000,000 as right share in favor of Government against receiving Taka 4,000,000,000 from Government on 30 June 2018.

49.00 Closing Cash and Cash Equivalents


Cash in hand 4,872,852,083 4,313,115,422 4,809,168,567 4,298,619,091
Balance with Bangladesh Bank and Sonali Bank 39,607,478,878 44,219,851,683 39,607,478,878 44,219,851,683
Balance with other bank and financial institutions 46,397,318,601 34,441,960,214 46,066,295,782 34,441,960,214
Money at call and short notice 3,509,655,555 14,622,355,555 3,509,655,555 14,622,355,555
Closing cash and cash equivalents 94,387,305,117 97,597,282,874 93,992,598,782 97,582,786,543

50.00 Events after Reporting Period

The Board of Directors in its 569th meeting dated 29 April 2019 decided to recommend a payment of Taka 10,000,000 as cash dividend for the year 2018.

Except the fact stated above, there is no material event after the reporting date that are not adjusting events came to management attention which may be
needful for the stakeholders.

51.00 Schedule of debenture as at 31 December 2018

SL Name of the institution/Company Amount in BDT

1 Rupon Oil & Feeds Limited 50,000


2 Monir Chemicals Company Limited 145,000
3 BJMC Unit 4,565,186
4 Mirzabo Steel Limited 150,000
5 Beximco Synthetics Limited 7,645,720
6 Beximco Texlites Limited 77,520,240
7 Beximco Denims Limited 48,450,150
Total 138,526,296

76
52.00 Schedule of shares purchased from primary and secondary market as at 31 December 2018

52(a) Quoted shares - Janata Bank Limited

Market Price
Cost per
SL Name of Company/ Institution No. of share Total Cost Price (per share) as on Total Market Price
unit
31 Dec 2018
Bank
1 AB Bank 1,277,913 51.16 65,377,832 12.00 15,334,956
2 Bank Asia 3,118,424 19.28 60,131,452 17.70 55,196,105
3 BRAC Bank 4,779,712 20.02 95,709,700 72.70 347,485,062
4 Dhaka Bank Ltd 539,469 16.91 9,122,389 14.20 7,660,460
5 Dutch Bangla Bank 77,500 99.14 7,683,085 144.40 11,191,000
6 Eastern Bank Ltd 4,076,799 2.99 12,190,855 36.00 146,764,764
7 Exim Bank Ltd 80,448 6.77 545,025 11.80 949,286
8 ICB Islamic Bank 5,541,800 10.05 55,689,671 4.80 26,600,640
9 IFIC 804,527 20.19 16,239,608 10.90 8,769,344
10 Islamic Bank 304,053 30.32 9,219,529 24.20 7,358,083
11 Jamuna Bank 691,748 11.09 7,674,244 17.60 12,174,764
12 Mercantile Bank 430,500 15.00 6,456,916 18.00 7,749,000
13 MTB 925,447 15.56 14,395,525 35.10 32,483,190
14 NBL 686,907 10.65 7,314,800 9.30 6,388,235
15 NCC 999,955 15.45 15,452,521 15.90 15,899,285
16 One Bank Ltd 194,906 8.97 1,748,691 15.00 2,923,590
17 Prime Bank 451,441 34.73 15,676,954 18.10 8,171,082
18 Pubali Bank 404,688 31.72 12,838,326 26.00 10,521,888
19 Shajalal Islami Bank Ltd. 566,771 15.93 9,031,073 27.60 15,642,880
20 Social Islamic Bank 80,850 22.49 1,818,570 15.40 1,245,090
21 South East Bank 2,685,353 30.51 81,918,880 15.60 41,891,507
22 Standard Bank 805,677 19.77 15,928,698 10.90 8,781,879
23 The City Bank 1,160,363 29.17 33,847,799 30.20 35,042,963
24 Trust Bank 1,692,865 25.16 42,600,355 32.50 55,018,113
25 UCBL 701,930 35.86 25,174,480 17.60 12,353,967
26 Uttara Bank Ltd 754,900 34.39 25,958,008 28.50 21,514,650
27 IBBL Bond 116,010 954.55 110,737,578 942.00 109,281,420
Total 760,482,564 1,024,393,203

NBFI
1 DBH 668,247 81.24 54,288,404 129.40 86,471,162
2 IDLC 103,950 37.30 3,877,697 69.70 7,245,315
3 ICB 46,619,333 21.16 986,652,700 104.50 3,885,067,599
4 ILFSL 283,904 51.31 14,568,334 13.70 3,889,485
5 Peoples Leasing 345,368 107.01 36,957,162 5.60 1,934,061
6 Phonix Finance 147,027 68.38 10,053,380 32.60 4,793,080
7 Premier Leasing 409,405 27.18 11,126,182 8.90 3,643,705
8 Prime Finance 364,214 118.15 43,032,443 9.50 3,460,033
Total 1,160,556,302 3,996,504,440
* Cost price of ICB share is deducted from actual market price.
* For the purpose of calculating provision for investment the price of ICB has not considered.
Mutual Funds
1 1st Janata Bank M.F 72,480,836 6.90 500,000,000 4.40 318,915,678
2 1st Bangladesh Fixed Income Fund 194,036,753 7.22 1,400,000,000 4.30 834,358,037
3 EBL 1st MF 75,993 13.16 1,000,123 7.60 577,547
4 Eastern Bank Ltd NRB M F 14,925,335 6.69 99,830,000 4.60 68,656,541
5 ICB 2nd NRB 1,067,500 12.78 13,640,617 9.90 10,568,250
6 ICB Sonali Mf 350,000 6.37 2,228,708 7.00 2,450,000
7 IFIC 1st MF 227,707 6.59 1,500,000 4.20 956,369
8 L R Global M F 5,184,672 9.64 50,000,000 6.90 35,774,237
9 PHP 1st MF 704,730 7.09 4,994,915 4.40 3,100,812
10 Popular Life 1st M.F 747,719 6.69 5,000,000 4.20 3,140,420
11 CAPM BDBL MF 01 3,000,000 10.00 30,000,000 6.70 20,100,000
12 Trust Bank 1st MF 758,963 6.59 5,000,000 4.40 3,339,437
13 Vanguard AML RB MF 25,000,000 10.00 250,000,000 8.90 222,500,000
14 Vanguard BD Finance MF 25,000,000 10.00 250,000,000 6.90 172,500,000
15 Bangladesh Fund 21,300,000 100.00 2,130,000,000 95.00 2,023,500,000
Total 4,743,194,363 3,720,437,328
77
Market Price
Cost per
SL Name of Company/ Institution No. of share Total Cost Price (per share) as on Total Market Price
unit
31 Dec 2018

Pharmaceuticals
1 Active Fine Chemical Ltd 211,028 7.12 1,501,957 28.20 5,950,990
2 Beximco Pharmaceuticals Ltd 2,801,935 58.23 163,154,114 79.10 221,633,058
3 Renata 72,755 231.17 16,818,625 1,141.60 83,057,108
4 Square Pharma 554,000 63.31 35,073,740 254.20 140,826,800
Total 216,548,436 451,467,956

Engineering
1 Aftab automobiles Ltd 987,789 72.75 71,866,444 45.90 45,339,515
2 BD Lamps 82,385 194.58 16,030,877 197.00 16,229,845
3 BSRM Steel 204,338 84.87 17,341,480 59.90 12,239,845
4 S Alam Cr Steels 253,633 49.92 12,660,296 28.20 7,152,451
Total 117,899,097 80,961,656

Cement
1 lafargeHolcim BD Ltd 500,500 33.80 16,918,430 43.50 21,771,750
Total 16,918,430 21,771,750

Fuel & Power


1 DESCO 1,014,616 51.16 51,908,951 40.40 40,990,486
2 Baraka Power Limited 440,122 18.88 8,309,503 28.00 12,323,416
3 Jamuna Oil 186,769 138.20 25,810,876 190.50 35,579,494
4 Meghna Petroleum 288,296 82.08 23,664,737 188.60 54,372,626
5 Padma Oil Co Ltd 1,777,056 0.76 1,344,148 225.20 400,193,011
6 Powergrid 993,557 62.49 62,087,377 48.00 47,690,736
7 Summit Power 4,247,859 49.28 209,325,199 39.40 167,365,645
8 Titas Gas 1,248,425 83.27 103,959,461 36.40 45,442,670
Total 486,410,252 803,958,084

Textiles
1 Anlima yarn 232,727 17.39 4,046,301 39.80 9,262,535
2 Apex Weaving and Finishing Mil 44,890 8.91 400,000 5.00 224,450
3 Al Haj Textile 160,464 43.91 7,046,590 87.90 14,104,785
4 Envoy Textile 511,919 40.51 20,739,484 36.30 18,582,660
5 Malek Spinnng Mills 512,480 20.43 10,468,087 17.20 8,814,656
6 Square Textile 29 - - 47.10 1,366
Total 42,700,462 50,990,452

Tannery
1 Apex Footwear Ltd 65,700 348.32 22,884,725 295.50 19,414,350
Total 22,884,725 19,414,350

Insurance
1 Delta Life 36,000 33.22 1,195,873 109.80 3,952,800
2 Fareast life 184,713 103.82 19,177,479 63.20 11,673,862
3 Green Delta life 298,556 101.20 30,212,714 65.00 19,406,140
4 National Life Insurance 370,849 47.82 17,734,143 216.20 80,177,553
5 Nitol Ins 146,932 38.38 5,639,968 28.00 4,114,096
6 Pragati Life Ins. 27,929 117.11 3,270,805 114.70 3,203,456
7 Progressive Life 87,974 152.58 13,422,808 65.20 5,735,905
8 Standard Insurance 47,313 22.56 1,067,412 37.20 1,760,044
Total 91,721,202 130,023,856

Tele communication
1 GP 200,000 233.16 46,632,625 367.30 73,460,000
2 BSCCL 131,885 147.96 19,513,169 93.50 12,331,248
Total 66,145,794 85,791,248

78
Market Price
Cost per
SL Name of Company/ Institution No. of share Total Cost Price (per share) as on Total Market Price
unit
31 Dec 2018
Others
1 Beximco 317,565 71.67 22,759,714 23.50 7,462,778
2 National Tea Co Ltd 44,220 562.89 24,890,806 775.40 34,288,188
3 Summit Alliance Port Ltd 561,987 107.53 60,433,269 25.30 14,218,271
Total 108,083,789 55,969,237

Paper Share
3 BATBC 2,500 84.20 210,491 3,541.70 8,854,250
4 Bata Shoes 200 109.41 21,882 1,116.40 223,280
5 Monno Ceramic Industries Ltd 15,015 39.23 589,041 245.60 3,687,684
6 Square Pharmaceuticals Ltd 5,832 10.00 58,320 254.20 1,482,494
Total 879,734 14,247,708
Grand Total (Quoted Share) 7,834,425,150 10,455,931,268

52(b) Un Quoted Share - Janata Bank Limited

Market Price
Cost per
SL Name of Company/ Institute No. of share Total Cost Price (per share) as on Total Market Price
unit
31 Dec 2018
1 Commerce Bank Ltd 1,349,964 100.00 134,996,400 100.00 134,996,400
2 IIDFC 11,726,576 5.73 67,168,898 51.65 67,168,898
Specialised Jute yarn and towain Co
3 33,790 9.75 329,453 9.75 329,453
Ltd
4 Paper Converting and Packeging Ltd 2,956 98.75 291,905 98.75 291,905
5 IFIC 73,500 106.19 7,804,699 106.19 7,804,699
6 Central Depository Bangladesh Ltd 8,567,705 2.75 23,541,640 6.11 23,541,640
7 Swan Textile Mills Ltd 1,000 97.50 97,500 97.50 97,500
8 Fiber shine 1,990,000 10.00 19,900,000 10.00 19,900,000
9 Rupsa fish & allied company ltd 1,111,000 18.00 19,998,000 18.00 19,998,000
10 Farmer's Bank Ltd 165,000,000 10.00 1,650,000,000 10.00 1,650,000,000
11 Azadi Printers Ltd 756 100.00 75,600 100.00 75,600
Total 1,924,204,095 1,924,204,095

52(c) Preference Share (Redeemable) - Janata Bank Limited

Market Price
Cost per
SL Name of Company/ Institute No of share Total Cost Price (per share) as on Total Market Price
unit
31 Dec 2018
1 Orion Infrastructure Limited 100,000,000 10.00 1,000,000,000 10.00 1,000,000,000
Total 1,000,000,000 1,000,000,000

52(d) Preference Share (Convertible) - Janata Bank Limited

Market Price
Cost per
SL Name of Company/ Institute No of share Total Cost Price (per share) as on Total Market Price
unit
31 Dec 2018
1 Orion Infrastructure Limited 300,000,000 10.00 3,000,000,000 10.00 3,000,000,000
Total 3,000,000,000 3,000,000,000

Total Share price [52(a)+52(b)+52(c)+52(d)] 13,758,629,245 16,380,135,363

79
53(i) Consolidated Schedule of fixed assets of Janata Bank Limited as at 31 December 2017

A. Cost
(Figure in Thousand unless stated otherwise)
COST DEPRECIATION
Written down Written down
Exchange Opening Balance Addition during Exchange Opening Balance Adjustment
Name of Assets Opening Balance as Sales/ Transfer/ Balance as on Opening Balance Charged during Balance as on Value as on Value as on
Sl. No. Fluctuatio as on 01.01.18 the year Rate (%) Fluctuatio as on 01.01.18 during the
on 01.01.18 Adjustment 31.12.18 as on 01.01.18 the year 31.12.18 31.12.18 31.12.17
n (Restated) n (Restated) year

1 2 3 4 5=(2+3-4) 6 7 8 9 10=(7+8-9) 11 12

1 Land 119,380 119,380 10,000 - 129,380 - - - - - 129,380 119,380


2 Building 456,648 (589) 456,059 141,096 5,993 591,162 2.5% 103,459 1 103,460 15,456 22 118,894 472,268 353,189
Sub-total 576,028 (589) 575,439 151,096 5,993 720,542 103,459 1 103,460 15,456 22 118,894 601,648 472,569
3 Machinery and Equipment: 307,493 307,493 195,562 51,310 451,745 20% 211,078 211,078 47,554 7,058 251,574 200,171 96,415
4 Furniture and Fixture:
a) Office Equipment 365,560 (158) 365,402 49,077 711 413,768 20% 252,012 252,012 38,779 5,474 285,317 128,451 113,548
b) Fire Extinguisher & Arms 14,329 14,329 949 22 15,256 20% 10,877 10,877 703 30 11,550 3,706 3,452
c) Weighing Machine 1,423 1,423 5 - 1,428 20% 790 790 135 - 925 503 633
d) Other furniture 1,059,301 1,059,301 68,383 12,586 1,115,098 10% 483,006 483,006 62,362 11,294 534,074 581,024 576,295
Sub-total 1,440,613 (158) 1,440,455 118,414 13,319 1,545,550 746,685 - 746,685 101,979 16,798 831,866 713,684 693,928
5 Vehicle
a) Car 519,573 519,573 - - 519,573 20% 362,125 362,125 50,710 1 412,834 106,739 157,448
b) Cycle and Scooter 9,503 9,503 - - 9,503 20% 8,350 8,350 98 - 8,448 1,055 1,153
Sub-total 529,076 - 529,076 - - 529,076 370,475 - 370,475 50,808 1 421,282 107,794 158,601
6 Computer
a) Computer Hardware 2,949,022 2,949,022 240,821 41,727 3,148,116 20% 1,987,209 1,987,209 335,995 50,754 2,272,450 875,666 961,813
b) Computer Software 608,169 608,169 3,696 28,085 583,780 20% 280,623 280,623 124,460 - 405,083 178,697 327,546
Sub total 3,557,191 - 3,557,191 244,517 69,812 3,731,896 2,267,832 - 2,267,832 460,455 50,754 2,677,533 1,054,363 1,289,359
7 Company Organizational Cost 17,855 178 18,033 139 3 18,169 1,037 10 1,047 370 1 1,416 16,753 16,818
A. Grand total (1+2+3+4+5+6+7) 6,428,256 (569) 6,427,687 709,728 140,437 6,996,978 3,700,566 11 3,700,577 676,622 74,634 4,302,565 2,694,413 2,727,690

80
B. Revaluation
(Amount in Taka '000 )
VALUATION DEPRECIATION
Written down Written down
Exchange Opening Balance Exchange Opening Balance Adjustment
Name of Assets Opening Balance as Revaluation Sales/ Transfer/ Balance as on Opening Balance Charged during Balance as on Value as on Value as on
Sl. No. Fluctuatio as on 01.01.18 Rate (%) Fluctuatio as on 01.01.18 during the
on 01.01.18 during the year Adjustment 31.12.18 as on 01.01.18 the year 31.12.18 31.12.18 31.12.17
n (Restated) n (Restated) year

1 2 3 4 5=(2+3-4) 6 7 8 9 10=(7+8-9) 11 12

1 Land 6,446,804 6,446,804 - - 6,446,804 - - - - - - - 6,446,804 6,446,804


2 Building 1,584,731 1,584,731 - - 1,584,731 2.5% 365,449 - 365,449 30,482 395,931 1,188,800 1,219,282
Sub-total 8,031,535 - 8,031,535 - - 8,031,535 365,449 - 365,449 30,482 - 395,931 7,635,604 7,666,086
3 Machinery and Equipment 127,351 127,351 - - 127,351 20% 127,351 - 127,351 - - 127,351 - -
4 Furniture and Fixture: -
a) Office Equipment - - - - - 20% - - - - - - - -
b) Fire Extinguisher & Arms - - - - - 20% - - - - - - - -
c) Weighing Machine - - - - - 20% - - - - - - - -
d) Other furniture 5,548 5,548 - - 5,548 10% 5,548 - 5,548 - - 5,548 - -
Sub-total 5,548 - 5,548 - - 5,548 5,548 - 5,548 - - 5,548 - -
5 Vehicle -
a) Car 41,204 41,204 - - 41,204 20% 41,204 - 41,204 - - 41,204 - -
b) Cycle and Scooter - - - - - 20% - - - - - - - -
Sub-total 41,204 - 41,204 - - 41,204 41,204 - 41,204 - - 41,204 - -
6 Computer -
a) Computer Hardware 2,104 2,104 - - 2,104 20% 2,104 - 2,104 - - 2,104 - -
b) Computer Software - - - - - 20% - - - - - - - -
Sub- total 2,104 - 2,104 - - 2,104 2,104 - 2,104 - - 2,104 - -
7 Company Organizational Cost - - - - - - - - - -
B. Grand total (1+2+3+4+5+6+7) 8,207,742 - 8,207,742 - - 8,207,742 541,656 - 541,656 30,482 - 572,138 7,635,604 7,666,086

Total (A+B) 14,635,998 (569) 14,635,429 709,728 140,437 15,204,720 4,242,222 - 4,242,233 707,104 74,634 4,874,703 10,330,017 10,393,776

81
53(ii) Schedule of fixed assets of Janata Bank Limited as at 31 December 2018

A. Cost
(Figure in Thousand unless stated otherwise)
COST DEPRECIATION
Written down Written down
Opening Addition Sales/ Opening Charged Adjustment
Sl. Name of Assets Balance as on Balance as Value as on Value as on
Balance as on during the Transfer/ Rate (%) Balance as on during the during the
No. 31.12.18 on 31.12.18 31.12.18 31.12.17
01.01.18 year Adjustment 01.01.18 year year
1 2 3 4 5=(2+3-4) 6 7 8 9 10=(7+8-9) 11 12

1 Land 119,380 10,000 - 129,380 - - - - - 129,380 119,380


2 Building 421,730 140,942 - 562,672 2.5% 97,352 14,527 - 111,879 450,793 324,378
Sub-total 541,110 150,942 - 692,052 97,352 14,527 - 111,879 580,173 443,758
3 Machinery and Equipment: 304,222 195,452 51,310 448,364 20% 209,001 47,315 7,058 249,258 199,106 95,221
4 Furniture and Fixture:
a) Office Equipment 361,863 48,900 6,702 404,061 20% 248,053 36,942 5,445 279,550 124,511 113,810
b) Fire Extinguisher & Arms 14,329 949 22 15,256 20% 10,877 703 30 11,550 3,706 3,452
c) Weighing Machine 1,423 5 - 1,428 20% 790 135 - 925 503 633
d) Other furniture 1,040,115 68,383 12,586 1,095,912 10% 468,902 62,362 11,294 519,970 575,942 571,213
Sub-total 1,417,730 118,237 19,310 1,516,657 728,622 100,142 16,769 811,995 704,662 689,108
5 Vehicle
a) Car 508,232 - - 508,232 20% 353,764 50,114 - 403,878 104,354 154,468
b) Cycle and Scooter 9,503 - - 9,503 20% 8,350 98 - 8,448 1,055 1,153
Sub-total 517,735 - - 517,735 362,114 50,212 - 412,326 105,409 155,621
6 Computer
a) Computer Hardware 2,945,472 240,579 41,727 3,144,324 20% 1,985,339 335,659 50,754 2,270,244 874,080 960,133
b) Computer Software 591,336 3,696 - 595,032 20% 292,638 124,384 - 417,022 178,010 298,698
Sub total 3,536,808 244,275 41,727 3,739,356 2,277,977 460,043 50,754 2,687,266 1,052,090 1,258,831
A. Grand total (1+2+3+4+5+6) 6,317,605 708,906 112,347 6,914,164 3,675,066 672,239 74,581 4,272,724 2,641,440 2,642,539

82
B. Revaluation
(Amount in Taka '000 )
VALUATION DEPRECIATION
Written down Written down
Opening Revaluation Sales/ Opening Charged Adjustment
Sl. Name of Assets Balance as on Balance as Value as on Value as on
Balance as on during the Transfer/ Rate (%) Balance as on during the during the
No. 31.12.18 on 31.12.18 31.12.18 31.12.17
01.01.18 year Adjustment 01.01.18 year year

1 2 3 4 5=(2+3-4) 6 7 8 9 10=(7+8-9) 11 12

1 Land 6,446,804 - - 6,446,804 - - - - 6,446,804 6,446,804


2 Building 1,584,731 - - 1,584,731 2.5% 365,449 30,482 - 395,931 1,188,800 1,219,282
Sub-total 8,031,535 - - 8,031,535 365,449 30,482 - 395,931 7,635,604 7,666,086
3 Machinery and Equipment 127,351 - - 127,351 127,351 - - 127,351 - -
4 Furniture and Fixture:
a) Office Equipment - - - - 20% - - - - - -
b) Fire Extinguisher & Arms - - - - 20% - - - - - -
c) Weighing Machine - - - - 20% - - - - - -
d) Other furniture 5,548 - - 5,548 10% 5,548 - - 5,548 - -
Sub-total 5,548 - - 5,548 5,548 - - 5,548 - -
5 Vehicle
a) Car 41,204 - - 41,204 20% 41,204 - - 41,204 - -
b) Cycle and Scooter - - - - 20% - - - - - -
Sub-total 41,204 - - 41,204 41,204 - - 41,204 - -
6 Computer
a) Computer Hardware 2,104 - - 2,104 20% 2,104 - - 2,104 - -
b) Computer Software - - - - 20% - - - - - -
Sub- total 2,104 - - 2,104 2,104 - - 2,104 - -
B. Grand total (1+2+3+4+5+6) 8,207,742 - - 8,207,742 541,656 30,482 - 572,138 7,635,604 7,666,086

Total (A+B) 14,525,347 708,906 112,347 15,121,906 4,216,722 702,721 74,581 4,844,862 10,277,044 10,308,625

83
54.00 Schedule of classified other assets of Janata Bank Limited as at 31 December 2018

(Figure in Thousand unless stated otherwise)


Outstanding Amount of
Serial Particulars Classification Status
Balance Provision
Unclassified Doubtful Bad/Loss
1 Suspense
Head Office 16,747 3,650 2,405 10,692 11,895
Branches (In Bangladesh) 4,499,199 4,063,278 47,582 388,339 412,130
Branches (Overseas) 51,544 30,298 2,377 18,869 20,058
Sub-total 4,567,490 4,097,226 52,364 417,900 444,083

2 Sundry Assets
Head office 28,327,120 28,264,974 - 62,146 62,146
Branches (In Bangladesh) 7,485,394 5,810,010 347,221 1,328,163 1,501,774
Branches (Overseas) 108,521 102,306 2,658 3,557 4,886
Sub-total 35,921,035 34,177,290 349,879 1,393,866 1,568,806

3 Others
Head Office 20,166,018 19,116,111 - 1,049,907 1,049,907
Branches (In Bangladesh) 627,264 623,297 - 3,967 3,967
Overseas Branches (UAE) 4,073 4,073 - - -
Sub-total 20,797,355 19,743,481 - 1,053,874 1,053,873
Total 61,285,880 58,017,997 402,243 2,865,640 3,066,762

Inter branch transaction 10,520,286 10,328,681 64,179 127,426 159,515

84
55.00 Segment reporting
For the purpose of segment reporting as per Bangladesh Financial Reporting Standards (BFRS) 8 'Operating Segments', the following segment relating to revenue,
expenses, assets and liabilities have been identified and shown as follows:
* Loans & Advances
* Treasury
* Overseas Branches (UAE)
* JCIL, Dhaka
* JEC, Italy
* JEC, USA
Operating segments
Amount in million taka
Janata Bank Limited Subsidiaries of JBL
Overseas
Particulars Loans & JCIL, JEC, JEC, Total
Treasury Branches, Other Total
advances Dhaka Italy USA
UAE
Interest income 33,920.01 - 568.65 - 34,488.66 49.88 0.37 - 34,538.91
Interest expenses (26,748.07) (209.25) (14.77) - (26,972.09) 0.01 (1.65) - (26,973.73)
Net interest income 7,171.94 (209.25) 553.88 - 7,516.57 49.89 (1.28) - 7,565.18
Investment income - 11,350.63 - - 11,350.63 72.44 - - 11,423.07
Commission & brokerage - 811.83 15.24 - 827.07 16.42 17.95 1.16 862.60
Foreign exchange income - 2,012.49 23.83 - 2,036.32 - - 0.94 2,037.26
Other operating income - - 199.37 1,802.79 2,002.16 0.03 (0.34) - 2,001.85
Total operating income 7,171.94 13,965.70 792.32 1,802.79 23,732.75 138.78 16.33 2.10 23,889.96
Total operating expenses - - (324.63) (13,619.17) (13,943.80) (92.34) (63.09) (24.97) (14,074.15)
Profit before provision 7,171.94 13,965.70 467.69 (11,816.38) 9,788.95 46.44 (46.76) (22.87) 9,815.81
Rate of operating income 73.27% 142.67% 4.78% (120.71%) 99.73% 0.47% (0.48%) (0.23%) 100.00%
Loans & advances 529,451.01 - 4,256.15 - 533,707.16 2,452 - - 536,159.54
Investment - 166,783.79 - - 166,783.79 2,524 28.65 - 169,335.95

56.00 Employees of Janata Bank Limited

Number of employees and remuneration thereof as per the schedule XI of the Companies Act 1994 the number of employees (including contractual employees)
engaged for the whole year or part thereof who received a total remuneration of Taka 36,000 per annum or Taka 3,000 per month were 11,849 at the end of 2018 as
against 12,391 in 2017.

85
57.00 Business Unit-wise Performance as on 31 December 2018

(Amount in million taka)


Cash
Cash
Name of Loans & Operating Classified Foreign Recovery
SL Deposit Import Export Recovery
Branch/Division Advances Profit Loan (CL) Remittance from Write
from CL
off Loans
1 Local office 40,535.60 136,761.48 3,627.00 52,458.50 149,331.90 60,243.40 6,640.50 1,364.20 15.80

2 Janata Bhaban Corporate 20,145.10 129,263.84 978.06 74,918.72 5,631.40 12,191.40 150.50 1,890.80 0.50

3 Dhaka north 131,205.60 37,953.39 2,021.19 19,193.22 2,694.60 11,374.10 3,590.10 353.20 40.90

4 Dhaka south 106,353.90 54,010.44 744.30 15,567.98 10,877.20 14,335.50 12,380.00 302.70 50.20

5 Chattogram 160,872.20 81,884.43 4,152.70 4,819.61 47,252.70 4,652.40 3,717.20 43.40 7.10

6 Sylhet 16,933.00 3,312.28 218.60 114.07 309.20 24.10 5,075.40 17.00 4.30

7 Khulna 29,618.40 23,135.80 341.10 5,768.20 3,875.60 11,214.60 4,176.30 252.10 57.10

8 Barishal 12,711.10 6,940.46 46.50 2,206.26 - 29.20 2,123.00 75.60 16.40

9 Rajshahi 34,039.20 17,302.59 639.90 1,548.61 145.70 - 5,537.30 292.00 49.10

10 Rangpur 21,333.70 9,782.16 217.80 908.64 117.10 35.50 1,530.30 271.10 51.30

11 Cumilla 30,477.20 4,698.13 455.40 157.44 3.70 525.40 11,047.80 20.60 0.70

12 Mymensingh 22,229.20 8,593.63 227.20 458.77 174.60 - 7,185.80 90.80 14.20

13 Faridpur 15,302.80 7,147.78 109.30 752.49 - 55.40 5,673.20 122.20 35.50

14 Noakhali 19,896.60 5,419.84 182.90 313.23 - - 7,250.70 35.40 0.80

15 Overseas 13,170.60 4,256.15 467.70 798.72 - - - 10.90 -

16 Head Office 724.25 3,244.76 (4,640.69) - - - - 45.50 -


Total 675,548.45 533,707.16 9,788.96 179,984.46 220,413.70 114,681.00 76,078.10 5,187.50 343.90

86
59.00 Highlights on the Overall Activities of the Bank
Figure in BDT
(unless stated otherwise)
SL. Particular 2018 2017

1 Authorized capital 30,000,000,000 30,000,000,000


2 Paid up capital 23,140,000,000 19,140,000,000
3 Total capital (Tier-I+Tier-II) 54,322,801,423 44,596,307,717
4 Required capital (Under BASEL-III) 53,823,053,750 44,341,902,500
5 Surplus/(shortage) of capital 499,747,673 254,405,217.00
6 Capital to Risk Weighted Asset Ratio (CRAR) 10.09% 10.06%
7 Total assets 866,046,475,979 805,988,407,557
8 Total deposits 675,548,450,902 649,440,778,742
9 Total loans and advances 533,707,160,206 459,580,051,884
10 Total contingent liabilities and commitments 94,744,224,048 120,881,917,205
11 Credit deposit ratio 79.00% 70.77%
12 Total classified loans 179,984,463,848 75,995,500,000
13 Percentage of classified loans against total loans and advances 33.72% 16.54%
14 Import 220,413,700,000 143,582,200,000
15 Export 114,681,000,000 139,920,900,000
16 Foreign remittance 76,078,100,000 72,022,000,000
17 Income from investment 11,350,631,814 14,414,821,862
18 Operating profit 9,788,961,443 11,369,477,915
19 Profit after tax and provision 248,971,176 2,686,499,082
20 Provision kept against loans and advances (G+S) including OBS 33,920,647,041 29,614,037,410
21 exposures
Provision kept against classified loans and advances 30,804,017,101 23,910,512,280
22 Provision surplus/(deficit) against loans and advances 903,904.00 59,394,273.00
23 Cost of fund 7.10% 7.28%
24 Cost of deposit (%) 4.34% 4.47%
25 Average return on loans and advances 7.15% 8.04%
26 Interest spread 2.81% 3.58%
27 Earning assets 568,956,061,536 610,004,449,284
28 Non earning assets 297,090,414,443 195,983,958,273
29 Return on investment (ROI) 8.37% 6.90%
30 Return on assets (ROA) after tax 0.03% 0.33%
31 Return on equity (ROE) 0.46% 5.23%
32 Earning per share (EPS) 1.17 14.04
33 Net operating income per share 46.20 59.40
34 Net assets value per share (NAVPS) 235.77 268.36
35 Net operating cash flow per share (NOCFPS) (151.15) (167.99)

92
58.00 Related parties

The bank provides banking service to the different ministries and corporation in the form of advances, letter
of credit, bank guarantee etc. but the bank had no transactions with the directors of the Bank as a related
party.

(i) Directors of Janata Bank Limited and interest in the bank (as at 31 December 2018)

Date of
Sl. Number of
Name Present Address Appointment/
No. shares
Reappointment

House # 22, Road # 2,


01. Luna Shamsuddoha 23/06/2016 01
Gulshan, Dhaka-1212

Anushua
Apartment # N-5, House # 59,
02. Khondker Sabera Islam 21/01/2016 01
Road # 25, Block # A,
Banani, Dhaka-1213
House # 12, Road # 13
03. Mr. Md. Mofazzal Husain Sector # 14 21/01/2016 01
Uttara, Dhaka-1230

Apartment # 3B,
Mr. Masih Malik Chowdhury,
04. House # 32, Road # 9-A, 11/05/2016 01
FCS FCA
Dhanmondi, Dhaka-1209

Flat # G-1,
05. Mr. A. K. Fazlul Ahad Nagar Shanti Nibash, 11/05/2016 01
153/6 Shantinagar, Dhaka-1217

House # 14, Road # 99,


06. Mrs. Selima Ahmad 09/11/2016 01
Gulshan-2, Dhaka-1212

Flat # A-3, Fortuna Apartment


07. Mr. Mohammad Abul Kashem House 42/E-1, Indira Road 04/01/2017 01
Tejgaon, Dhaka

Flat # A3, Fortuna Apartment


08. Dr. Md. Jafar Uddin 6/1, Siddeswari Lane 17/10/2018 01
Shantinagar, Dhaka-1217

Apt # BTI Jubilition (C-6, T-3)


09. Mr. Ajit Kumar Paul, FCA 23, West Nakhal Para 18/12/2018 01
Tejgaon, Dhaka

Flat # A-4 08/12/2014


Shaikh Md. Wahid-uz-Zaman
10. 107 Masjid Road to 01
(Ex-Director)
Banani DOHS, Dhaka-1213 07/12/2017

30/12/2015
Mr. Manik Chandra Dey House # 56, Satish Sarker Road,
11. to 01
(Ex-Director) Gandaria, Dhaka-1204
03/10/2018

Arunodoy 11/07/2017
Mr. Md. Abdul Haque
12. House # Uma-06, Block # B to 01
(Ex-Director)
Khilgaon, Dhaka 1219 03/10/2018

Flat # 501, House # 48


Mr. Md. Abdus Salam Azad
13. Road # 15-A New (26 Old) 05/12/2017 -
(CEO & Managing Director)
Dhanmondi, Dhaka

87
(ii) Particulars of Directors and their interest in other entities (as at 31 December 2018)

Name of the firms/companies in which


SL Status with
Name interested as proprietor, partner, director, Status
No JBL
managing agent, guarantor, employee etc.
Dohatec New Media, a CMMI Level 3
1 Chairman
Company
Managing
2 Global Voice Telecom Limited
Director
01. Luna Shamsuddoha Chairman
Bangladesh Women in Technology Founder
3
(BWIT) President

4 Janata Capital and Investment Limited Chairman

1 Janata Capital and Investment Limited Ex-Director


02. Khondker Sabera Islam Director
Agrani SME Financing Company
2 Ex-Director
Limited
Ex-
03. Md. Mofazzal Husain Director 1 Rajshahi Krishi Unnayan Bank Managing
Director
Masih Muhith Haque & Co. Founder
1
Mr. Masih Malik Chowdhury, Chartered Accountants Partner
04. Director
FCS FCA RSM International Network in
2 Partner
Bangladesh
Ex-
The Government of the People’s
1 Additional
Republic of Bangladesh
05. Mr. A. K. Fazlul Ahad Director Secretary
Bangladesh Standards and Testing Ex-Director
2
Institution (BSTI) General

Bangladesh Women Chamber of Founder


1
Commerce and Industry President

Vice
06. Mrs. Selima Ahmed Director 2 Nitol-Niloy Group
Chairperson
Governing
3 BEZA and BIDA Body
Member
Ex-
The Government of the People’s
07. Mr. Mohammad Abul Kashem Director 1 Additional
Republic of Bangladesh
Secretary
Additional
1 Finance Division, Ministry of Finance
Secretary

08. Dr. Md. Jafar Uddin Director 2 Bangladesh Commerce Bank Ltd. Director

Bangladesh Institute of Management and


3 Director
Petrobangla
Financial Institutions Division, Ministry Additional
09. Mr. Ajit Kumar Paul, FCA Director 1
of Finance Secretary

10 Mr. Md. Abdus Salam Azad Director 1 Janata Capital and Investment Limited Director

88
(iii) Particular of Directors in the Audit Committee (as at 31 December 2018)

SL Name Position Educational Qualification


Fellow Chartered Accountants
Mr. Masih Malik Chowdhury, FCS
01. Chairman Fellow Chartered Secretaries, LLB
FCA
BA (Hons) & MA (Economics)

02. Khondker Sabera Islam Member BA (Hons) & MA (Political Science)

BA (Hons) & MA (Bengali Language


03. Mr. Mohammad Abul Kashem Member
and Literature)

Fellow Chartered Accountants


04. Mr. Ajit Kumar Paul, FCA Member B. Com (Hons) in Management
M.Com in Marketing, LLB (Hons)

(iv) Formulation of effective audit action plan for strengthening bank’s internal control and its
implementation process is mentioned below:
SL Particulars Comments
A) Activities Related to Internal Control
Reviewed Audit Plan 2018 and recommended it before the Board of Directors for
01.
final approval
Reviewed inter control and compliance system clause of Memorandum of
02.
Understanding(MOU)
03. Reviewed minutes of recovery meetings held in larger branches in Dhaka
04. Reviewed inter branch reconciliation report of Janata Bank Limited regularly
Reviewed and directed Cash Transaction Report(CTR) related clause in
05.
Memorandum of Understanding
Approved Self-Assessment of Anti-Fraud & Internal Controls related time bound
06.
action plan
07. Reviewed report on Self-Assessment of Anti-Fraud & Internal Controls
08. Reviewed action plan related to computerization status of JBL branches
Reviewed compliance status of the commercial audit report, comprehensive
09. inspection report conducted by Bangladesh Bank and statutory audit report and
advised the management to ensure full compliance on quarterly rest
Reviewed the report submitted by the Department of Bank Inspection-2, Bangladesh
10.
Bank on Internal Control and Compliance Policy (ICC Policy)
Discussed and reviewed the compliance report of internal audit conducted on
11.
difference branches on quarterly basis
12. Reviewed the decisions taken by the MANCOM
13. Discussed and reviewed External Credit Assessment Institution(ECAI) Nomination
Reviewed the recovery status of classified loans as well as write off loans and
14.
providing necessary guidelines to the management to reduce the NPLs
Reviewed the reconciliation performance of inter branch transaction accounts on
15.
quarterly basis and advised the management to keep it regular
B) Activities Related to Financial Reporting
01. Reviewed and recommended the Half Yearly unaudited financial statements of JBL
02. Reviewed the report on coverage of operating loss incurred by JEC Italy
Reviewed the annual financial statements and examined whether these are complete
03. and consistent with applicable accounting and reporting standards (IASs &IFRSs) set
by respective governing bodies and regulatory authorities
Held meetings with the management and statutory auditors to review annual financial
04.
statements before finalization
Checked whether the financial statements reflect the complete and concrete
information and determine whether the statements are prepared according to existing
05.
rules & regulations and standards enforced in the country and as per relevant
prescribed accounting standards set by Bangladesh Bank

89
SL Particulars Comments
06. Reviewed and made recommendation on the Depreciation Policy of Fixed Assets
C) Activities Related to Internal Audit
01. Reviewed suit case filed by JBL and writ petition against JBL
02. Reviewed report on mortgage property and auction sale for adjustment of loan
Reviewed Annual Audit Plan 2018 and Approved Annual Audit Plan for the year
03.
2019 by the Internal Audit Division
04. Reviewed and amended action plan related to Concurrent Audit Monitoring Cell
Discussed the internal audit report on different branches and instructed management
05.
to take necessary disciplinary action against fraud forgery committed employees
Reviewed responsibility fixation report of internal audit for irregularities in routine
06. works in different branches and recommended for taking necessary disciplinary
action against responsible persons
Reviewed the special audit reports on most important branches and recommended for
07.
taking necessary disciplinary action against responsible persons
Reviewed the special audit and inspection report on irregularities taken place in
08. Janata Exchange Company Srl. Italy and recommended for board approval for taking
necessary disciplinary action against responsible persons
Audit Committee monitored whether Internal Audit is working independent of the
09.
management
Reviewed the activities of the Internal Audit and the organizational structure to
10.
ensure that no unjustified restriction or limitation hinders the Internal Audit Process
11. Examined the efficiency and effectiveness of Internal Audit function
Examined whether the findings and recommendations made by the internal auditors
12.
are duly considered by the management
D) Activities Related to External Audit
The Committee reviewed selection of 60 branches by external auditor for the year
01.
ended 2018
02. Reviewed compliance status on Management Letter submitted by External Auditors
Reviewed and recommended on the appointment of external auditor for JBL UAE
03.
branches
The Committee met with the Statutory Auditors before finalization of financial
04.
statements for the year 2018
It properly addressed the issues mentioned in the Management Letter for taking
05.
appropriate action by the Management
Reviewed External Auditor appointment criteria and process and made
06. recommendation to the board for appointment of M/S Aziz Halim Khair Chowdhury
Chartered Accountants firms as statutory auditors of the Bank for the year 2018
Reviewed External Auditor appointment criteria and process and made
recommendation to the board for appointment of Grant Thornton Audit and
07.
Accounting Limited as statutory auditors of JBL four branches in UAE for the year
2018
Examined whether the findings and recommendations made by the external auditors
08.
are duly considered by the management or not on quarterly rest
09. Review the performance of the external auditors and their audit reports
E) Activities Related to Compliance with Existing Laws and Regulations
JBL Audit Committee reviewed whether the laws and regulations introduced by the
regulatory authorities (Central Bank and other bodies) and internal
circulars/instructions/policies regulations are approved by the board and management
01. being complied with or not. It reviewed Green Banking activities of Janata Bank
Limited. It submitted compliance report to the Board on quarterly basis on
regularization of the omission, fraud and forgeries and other irregularities detected
by the internal and external auditors and inspectors of regulatory authorities
F) Policy and Procedure Review of Related Activities
Reviewed Asset Liability Manual, Anti Money Laundering Policy for UAE
Branches, Annual Audit Plan 2018 for Audit and Inspection Division, IT Audit of
01. T24 User Management System, System Audit on IT System and Data Center, Internal
Control and Compliance Health Report 2017, Prize policy on cash recovery from
NPL and made recommendation to board for final approval

90
SL Particulars Comments
G) Other Activities
Reviewed and recommended on the coverage of operating losses incurred by JEC
01.
Italy
The committee emphasized on loan recovery and reviewed meeting minutes of
02.
different units of the bank on a regular basis
Reviewed Head Office Interest account and recommended guidelines for better
03.
operational efficiency
Reviewed accounting policies related to maintenance of provision on loan and
04.
advances
05. Recommended issues related to FDBP transactions in AD branches of JBL
06. Reviewed and recommended on the appointment of income tax advisor for JBL
Reviewed implementation report on observation, recommendations and decisions of
07.
the Audit Committee meetings from time to time for self-assessment purpose
Reviewed and recommended on the Directors’ Report to Shareholders for the year
08.
2018

(v) Related party relationship disclosure during the year 2018 (in compliance of BAS-24)

Balance as at Transaction Balance as at


Name of Related Nature of
Relationship 01 January During the 31 December
Party Transaction
2018 year 2018
Janata Capital and Investment in
Subsidiary
Investment Subsidiary 4,274,000,000 - 4,274,000,000
Company
Limited, Dhaka. Company
Janata Exchange Investment in
Subsidiary
Company Srl, Subsidiary 58,617,803 - 58,617,803
Company
Italy Company
Investment in
Janata Exchange Subsidiary
Subsidiary 81,590,000 - 81,590,000
Co. Inc. USA Company
Company

(iv) Significant contracts where Bank is a party & wherein Directors have interest
Nil
(v) Lending Policies to Related Parties
Related parties are allowed Loans and Advances as per General Loan Policy of the Bank & as per
requirements of Section 27(1) of the Bank Companies Act (Amendment) 2013.
(vi) Business other than Banking business with any related concern of the Directors as per
Section-18(2) of the Bank Companies Act (Amendment) 2013.
Nil
(vi) Investments in the Securities of Directors and their related concern
Nil

91

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