Bank Asia SustainabilityReport 20121
u n l o c k i n g
h u m a n
d i m e n s i o n s
sustainability report 2012
Bank Asia strives to spread the wave of sustainability for its
stakeholders creating ripple efects by its responsible business
planning through its dynamic network nodes and beyond
For A Better Tomorrow
BANK ASIA
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sustainability report 2012
Message
from the
Governor of
Bangladesh
Bank
BANK ASIA
sustainability report 2012
contents
4
vision | mission
5
core values | code of conduct
6
report parameter
7
strategic focus for sustainability
10
chairman’s statement
12
president and managing director’s review
14
awards and recognition
16
corporate proile
18
stakeholders engagement
21
materiality mapping
22
governance, commitment and stakeholders
24
directors’ proile
30
inancial performance
32
primary brands | products and services
42
environmental performance
48
economic performance
54
sustainable HR development
63
capital management
64
building the community
70
GRI G3.1 content index
BANK ASIA
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sustainability report 2012
vision
Bank Asia’s vision is to have a poverty free Bangladesh
in course of a generation in the new millennium,
relecting the national dream. Our vision is to
build a society where human dignity and human
rights receive the highest consideration along with
reduction of poverty.
mission
p To assist in bringing high quality service to our
customers and to participate in the growth and
expansion of our national economy.
p To set high standards of integrity and bring total
satisfaction to our clients, shareholders and
employees.
p To become the most sought after bank in the country,
rendering technology driven innovative services by
our dedicated team of professionals.
BANK ASIA
sustainability report 2012
Provide
customized
banking products
and services
code of
conduct
p
Employees must be open and loyal to the bank and bank’s interest.
p
Employees must keep conidential all bank and other matters that could provide
other third parties unauthorized access to conidential information.
p
Employees must observe the bank’s security requirements concerning access to
electronic resources and documents.
p
All information and communication with the media, the public and inancial markets
shall be reliable and correct, maintain high professional and ethical standards and in
accordance with established guidelines and regulations.
p
Customers shall be met with insight, respect, and understanding. Employees must
always try to fulill the needs of the customer in the best possible manner, within the
guidelines for corporate ethics that apply to business.
p
Under no circumstances, employees shall or be a part of any activity that prohibits
open and fair competition of Bank Asia in breach of relevant business laws.
p
Employees shall never ofer or accept illegal or inappropriate gifts or other
remuneration in order to achieve business or personal advantages.
p
Employee’s engagement in external duties must not afect his/her working
relationship with Bank Asia or come into conlict with Bank Asia’s business interest.
p
Should an employee become aware of an infringement of Bank Asia’s rules and
guidelines, he/she should blow whistle raising the issue to the line management or to
human resource department.
BANK ASIA
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sustainability report 2012
report parameter
The year 2012 reporting is our irst
sustainability report based on GRI reporting
framework G3/ G3.1 guidelines with an efort
to measure, disclose and be accountable to
internal and external stakeholders in terms of
governance, economic, environmental and
social aspects including both positive and
negative contribution.
Reporting scope
This report intends to touch upon all
signiicant environmental, economic and
social impacts resulting from Bank Asia’s
activities in the inancial year 2012. As this
is our irst sustainability report, signiicant
changes regarding scope, boundary, or
measurement methods and explanation of
the efect of any restatement of information
comparing to the previous report is not
applicable for this year.
The sustainability report will be prepared
once in a year describing activities and
achievements through-out the year.
Boundary of the report
The report boundary of the year 2012 covers
only banking operation run by corporate
oice, its branches, SME service centers and
other direct networks in Bangladesh. Impacts
of the activities of our subsidiaries, NGO
networks or our suppliers in other countries
are not within the scope of this report.
Bank Asia has two subsidiary companies,
one in Bangladesh and another in UK, but
no joint venture. As owner the Bank controls
the activities of its subsidiaries. Bank Asia
Securities Limited (BASL), a majority owned
subsidiary is incorporated in Bangladesh
and acts as a stock broker and stock dealer
in capital market. The inancial statements of
the BASL are prepared on a going concern
basis under historical cost convention in
accordance with Bangladesh Financial
Reporting Standards (BFRS).
BA Exchange Company (UK) Ltd. a wholly
owned subsidiary is incorporated in UK
and primary responsibility is remittance
channeling to Bangladesh from UK market.
Financial statements of BA Exchange UK are
prepared on a going concern basis under the
historical cost convention and in accordance
with the Financial Reporting Standards for
Smaller Entities.
Feedback
We welcome any feedback on our
sustainability reporting. For further
information and comments, please contact
Sustainability Reporting Team of the Bank
led by Mr. Imran Ahmed, FCA, CISA, CSRS,
Chief Financial Oicer, Mr. Md. Bashir Uddin
Ahmed, CSRS, First Assistant Vice President,
Finance & Accounts Division, Mr. Md. Shamim
Hasnat, Executive Oicer, Finance & Accounts
Division. They may be reached through
e-mail: sustainability@bankasia.com.bd.
Bank Asia Limited
Corporate Oice, Rangs Tower (2nd to 6th Floor)
68, Purana Paltan, Dhaka-1000, Bangladesh
Tel: +88 - 02- 7110042, +88 - 02- 7110062
E-mail: bankasia@bankasia.com.bd
Web: www.bankasia-bd.com
BANK ASIA
sustainability report 2012
strategic focus
for sustainability
Promoting
inancial inclusion
One of the strategic priorities
of Bank Asia is to promote inancial
inclusion for combating poverty which
the Bank irmly believes to achieve by its
deposit services, agricultural credit program,
small enterprise inancing for productive new
of farm employment of ‘missing middle’, Solar
home system projects with NGO-MFI partners,
foreign remittance of poor migrant workers
channeling through partner MFIs, domestic
remittance distribution through bank
led as well as mobile operation
led mobile banking
Going
green in the future
of banking
Customer
satisfaction
Bank Asia is sincere to create
higher customer satisfaction and
loyalty by its brand enhancement
programs & creating brand
ambassadors, personalized banking,
Online product innovation,
measure and reduce customer
eforts for greater value
proposition
Bank Asia irmly promotes green
banking to reach its long term strategic
objective to be a green, triple bottom line
bank where every decision will be taken with
both inancial and environmental considerations
in mind. The bank’s green banking initiatives
includes Online & paperless banking, reduction
of green house gas emission, mapping
bank’s carbon foot print, eicient energy
use, environment friendly projects,
plants nursery and horticulture
projects etc
Giving back
Bank Asia believes in giving
back to the community and
it will continue to promote
education, fulill its commitment
to community health, disaster
management, clean
environment, sports, art
and culture
BANK ASIA
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sustainability report 2012
triple
bottom line
As a player in the banking sector, Bank Asia has also incorporated three
dimensions of performance in terms of social, environmental and inancial
parameters exhibited through people, planet and proit as per global reporting
initiatives (GRI).
People
Bank Asia always plays a very active role in contributing to the society through
its CSR program, which are thoroughly illustrated in CSR section. In the context
of value creation model for its employees, the bank has made footprints by
achieving:
p Economic value added per employee is Tk. 350,061.
p 29,064 man-hours training have been provided to our employees in 2012.
Planet
As one of the strategic focuses of Bank Asia, ‘going green’ movement includes
eicient energy consumption, paperless oice, inancing renewable energy etc.
Bank Asia’s achievements in green initiatives are detailed out in green banking
section. Human resources division and training department of Bank Asia Ltd.
jointly organized two training programs on green banking in Dhaka zone. Total
number of participants were 60. HRD entered into a business partnership with our
green banking unit for the last quarter of 2012.
Proit
Economic proit of Bank Asia was Tk. 519.84 million for the year 2012.
BANK ASIA
sustainability report 2012
sustainable banking
operations: key
highlights
10,459
Children got eye sights
support through our
inancial assistance for vision
screening & ophthalmological
operations
29,064
177,604
Man hours of training
for development of our
human capital
Farmers and rural people
beneitted inancially through
our agricultural/rural credit
453
5,000
126,046
Households of rural and
semi-urban areas received
remittance of
Tk. 3,283.07 million through
our MFIs network
Households brought
under home solar system
and disbursed Tk. 171
million for this purpose
Students received support
for education under
Bank Asia’s higher studies
scholarship amounting to
Tk. 16.91 million
4,000
130,327
E-statements delivered
to customer
Rural students imparted
in ICT training from
computer learning
centers
57%
Cash transactions done
through ATM
BANK ASIA
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sustainability report 2012
chairman’s
statement
A Rouf Chowdhury
Chairman
BANK ASIA
The birth of Bank Asia
as a inancial institution
was to excel in the
economic sphere, which
impacts positively
the surroundings in a
more livable dimension
provided we are not only
individually conscious but
also collectively take our
partners along with us for
the future generation’s
survival.
sustainability report 2012
Proit is an important element, which
encourages further expansion of business but
I personally never believed proit generation
at the expense of incurring loss of the planet.
Our resources are scarce and best utilization
of these resources is to ensure maximum
value addition. We always prefer win-win
situations in every aspect of minimizing
wastage.
The bank has been maintaining supply chain
management very eiciently and ethically.
Suppliers are selected openly through
competing with peers after ensuring best
possible price and quality, which upholds the
ideology of “fair price fair trading”.
As a main function of inancial intermediation,
we deal with mobilization of fund from
surplus sector to deicit sector through
ofering best-suited and designed products
and services embracing for fulillment
of clients’ requirement. This complex
function under the purview of risk and
return can not be executed without the
existence of skilled and knowledgeable
employees. Since inception, Bank Asia
puts maximum importance on continuous
talent management, diversity & inclusion,
decent work-life balance and congenial
working environment to ensure higher
degree of motivation and digniied working
environment, which is relected in our human
capital balance sheet.
Our management of Bank Asia has
taken initiative to prepare a report on its
sustainability measures from the perspective
of economic, environment, social and
governance impacts, risks and opportunities
under strict compliance of applicable
guidelines promulgated by Global Reporting
Initiative (GRI).
I understand this initiative being for the
irst time will put our wish list and long
term aspiration of sustainability in a written
document, which is certainly not limited
looking ahead. The Board of Directors fully
appreciate and support these initiatives led
by Mr. Md. Mehmood Husain, President and
Managing Director of the Bank.
As a seal of endorsement, the board has
already approved a number of policies that
supports sustainability as well as green
banking. The followings are mention worthy:
p
Environmental and climate change
Risk as part of the existing credit risk
methodology prescribed to assess a
prospective borrower.
p
Green oice guide’ has been circulated
to all the employees that consists of
general instructions regarding eicient
use of electricity, oice supplies, proper
maintenance of wastes, recycling of
papers etc.
p
Preferences are given to inancing ecofriendly business activities and energy
eicient industries.
p
Preferences are given to inancing the
economic activities of the lood, cyclone
and drought prone areas at a reduced
interest rate without charging additional
risk premium.
p
Climate risk fund will be formed, which
will be used in case of emergency and
could be created as part of banks’ CSR
expenses.
In the end, I appreciate sustainability
reporting team for the necessary drive and
commitment to produce the report through
which our valued stakeholders will be able to
know Bank Asia’s thinking, current initiatives
and future planning about sustainability from
economic and environmental perspective.
BANK ASIA
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sustainability report 2012
president and
managing director’s
review
Bank Asia started its journey 13 years ago
with a vision of a poverty free Bangladesh
by placing highest consideration to human
rights and dignity. One of its mission
statements focuses on technology driven
services to attain ultimate excellence.
With these your bank embedded
sustainability at the core of its heart since
inception. Preparing and publishing the 1st
sustainability report as such is just another
oicial milestone.
Since incorporation in 1999, Bank Asia
embraced sustainability in its corporate
culture and consistently proved its pledge to
support communities and the environment
by taking on various social project and
inancing activities. Your bank has designed
and implemented its Online branch network
by home facilitated and customized
information communication technology
to provide safe, secure and stable banking
services.
We strive to make Bank Asia a great place
to work by creating a performance driven
culture that rewards success and encourage
employees to take control of their personal
developments. Through the process of
learning & rewarding we intend to enable
individuals to think, behave, take actions and
make decisions independently. Bank Asia
has an enabling environment and culture
where equal employment opportunity exists
evidenced by a good 28% inclusion from the
female work force, which is also growing.
Bank Asia irmly promotes green banking to
reach its long term strategic objective to be
a green, triple bottom line bank where every
decision will be taken with both inancial
and environmental considerations in mind.
The bank’s green banking initiatives include
Online & paperless banking, reduction of
BANK ASIA
sustainability report 2012
greenhouse gas emission, mapping bank’s
carbon footprint, eicient energy use,
environment friendly projects, plant nursery
and horticulture projects etc.
The bank continues its eforts to look
beyond short-term quantitative gains,
and concentrate on issues that make the
institution socially responsible, thus our allout eforts towards sustainable and balanced
growth. The bank contributed almost 3 times
in the year 2012 in comparison to previous
year. Total expenses in social projects was
Tk. 69.45 million in 2012 against Tk. 26.10
million in 2011.
towards Bank Asia’s dream for a poverty free
Bangladesh that is sustainable in economic,
social and environmental aspect.
Md. Mehmood Husain
President and Managing Director
In the end I express my sincere thanks and
gratitude to all stakeholders and sincerely
acknowledge their active engagement
BANK ASIA
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sustainability report 2012
awards and recognition
2012
BANK ASIA
p
Recognized by Bangladesh Bank as one of the top 10 commercial banks for
signiicant contribution to green banking in Bangladesh.
p
Certiicate of Merit from the Institute of Cost and Management Accountants
of Bangladesh (ICMAB) for Best Corporate Award 2012.
p
Certiicate of Merit from the Institute of Chartered Accountants of
Bangladesh (ICAB) for Best Published Accounts and Reports 2011.
sustainability report 2012
2011
p
2nd position for Best Published Accounts and Reports 2010 by ICAB
p
Certiicate of Merit award by SAFA for Best Presented Accounts and
Corporate Governance 2010.
BANK ASIA
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sustainability report 2012
corporate proile
Bank Asia Limited was incorporated on
September 28, 1999 as a private commercial
bank with the aim of contributing for the
development of the economy by bringing
superior quality technology driven banking
products and services.
In 2001 Bank Asia set a milestone by acquiring
the Bangladesh operations of the Bank of
Nova Scotia of Canada, irst in the banking
history of Bangladesh. At the beginning of
the year 2002, the bank again acquired the
Bangladesh operations of Muslim Commercial
Bank Limited of Pakistan.
Bank Asia has associated Islamic banking,
Of-shore banking, SME inancing & many
more specialized services with its core
banking activities. To excel in this new era
of technological triumph, Bank Asia has
successfully introduced mobile banking,
cutting edge ICT, state of the art network
solution, 24/7 ATM service & many other
e-products.
Bank Asia maintains an environment of
strong corporate governance that helps to
maintain its excellent brand image; relected
by consistent inancial performance for its
stakeholders. To attain sustainability we focus
more on strategic priorities measured by
quantitative and qualitative determinants.
Besides maintaining a steady growth Bank
Asia always prioritized in the structural and
moral development of the society. From
the very beginning it started its corporate
social responsibility (CSR) activities for the
development of our country’s unprivileged
segments in the areas of education, health,
environment, sports, arts & cultures and the
likes.
BANK ASIA
Nature of ownership and legal form
Bank Asia Limited was formed as a public
limited company under the Companies
Act 1994, and governed by the Banking
Companies Act 1991. The bank obtained
certiicate of incorporation on September
28, 1999 and banking license on October
06, 1999. It went for public ofering on
September 23, 2003 when its shares were
listed with Dhaka Stock Exchange (DSE) and
Chittagong Stock Exchange (CSE).
No signiicant changes have been taken place
during the reporting period regarding size,
structure, ownership of Bank Asia.
Number of countries where the
organization operates
Bank Asia runs its operation only in
Bangladesh. However, the bank has a fully
owned subsidiary named ‘BA Exchange
Co. (UK) Limited’ to facilitate as speedy and
dependable medium for remitting the hardearned money of expatriates back home. Its
started its operation in London on May 16,
2011.
Scale of the reporting organization
As of the end of 2012, our Bank’s operating
proit is Tk. 5,051.81 million and total assets
are Tk. 140,361.37 million. The Bank’s capital
adequacy ratio is 13.05%
Number of employees
Number of branches
Total operating
income
Total debt & equity
Number of ATMs
Number of credit
cards
SME centre
Number of debit cards
1,523 (1,485 of Bank &
38 of Subsidiaries)
73
7,821million
127,316.20 & 13,045.17
million
70 own & 2950 shared
26,576
6
150,708
sustainability report 2012
Branch network
Currently we have 79 branches and SME
service centers across the country spread over
diferent zones that includes 69 branches, 4
SME agricultural branch and 6 SME service
centers. Geographically 44 are placed in
capital Dhaka, 21 in Chittagong the 2nd largest
commercial hub after Dhaka, 6 in Sylhet zone
one of the leading remittance low area, 3 in
Khulna zone the 2nd international port city and
adjacent to worlds largest mangrove forest,
4 in Rajshahi the silk city and world’s inest
mango production area and 1 in Barisal the
main rice producing center of Bangladesh.
All these branches and SME centers are
eiciently supervised and monitored by 5
cluster mentors who take care of their overall
performance indicators on a regular basis.
Every year on an average 10 new branches
are added to our branch network.
World’s largest
Mangrove forest
‘Sundarban’
Cox’s Bazar
2nd largest
commercial
hub
World’s
longest
Sea beach
Branches Network
Membership with associations
p
p
p
p
Bangladesh Institute of Bank Management
(BIBM)
Bangladesh Association of Banks (BAB)
Association of Bankers Bangladesh (ABB)
The Institute of Bankers Bangladesh (IBA)
p
p
p
The American Chamber of Commerce in
Bangladesh (AmCham)
Bangladesh Foreign Exchange Dealers’
Association (BAFEDA)
Bangladesh Association of Publicly Listed
Companies (BAPLC).
Organizational structure
BANK ASIA
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sustainability report 2012
stakeholders
engagement
Bank Asia believes in the proper stakeholders
engagement in every aspects of its banking
activities. We identify our stakeholders
conducting thorough impact analyses in
respect of
p
Responsibility; Bank Asia has direct legal
responsibility to regulators, tax authority
etc.
p
Inluence; decision making of the bank is
inluenced to reach its intended goals by
shareholders and employees etc.
p
Proximity; the local community that
inluence heavily our daily operation
p
Dependency; those who are dependent
on our operational performance, e.g
business partners, and those whom we are
dependent, e.g customers
p
Representation; those who represent Bank
Asia to the outside world, e.g employees,
board and those whom we face for various
decision making purposes. e.g business
association leaders, local community
leaders
Impact analyses from the aspects of
governance, economic, environment and
social inluences help us recognize and
respond to emerging risks and opportunities
and meet the expectations of those
who shape our operating environment.
Continuous engagement with stakeholders is
integral to the success of our business.
We prioritize stakeholders’ issues based on
materiality mapping determining the level
of relevance and signiicance on economic,
environmental, social and inancial impacts.
The following table discusses on various
aspects of stakeholders, their engagement
process and our response:
Business
Partners
Subsidiaries
Our stakeholders
BANK ASIA
sustainability report 2012
Our
stakeholders
Customers
Local
communities
Shareholders/
investors
Board &
management
Ways of inclusion
• Customer
feedback
management
• Ongoing
market research
and product
innovation
Their priorities
Our response
• Good return from
deposits
• Fast services delivery
with excellence
• Preferential pricing,
charges and
commission
• Strict Shariah
compliance in Islamic
products and services
• Product varieties
catering market
demand
• Online banking
solutions with secured
transactions, privacy
and conidentiality
• ALCO sits every month to
decide pricing and rates
based on market analyses
• All network nodes are run by
online core banking system
(CBS)
• E products like mobile
banking, internet banking,
tele banking, electronic fund
transfer, etc. ensures hi-tech
banking needs
• Separate online CBS for
Islamic products
• Front desks and relationship
managers ensures fast and
high quality service delivery
following one to one
relationship.
• CSR activities
• Compensation for
• Strongly consider
• Scholarship
adverse direct or
environmental and social
indirect impact for
impact and restrain from
bank’s activities
adverse impact upon society
• Support to under
• Target segment is
privileged people
underdeveloped and under
• Support to basic need privileged people
for living
• Signiicant contribution
to education, health,
disaster management and
environmental sector
Annual general
• Healthy return on
• Maintained attractive
meeting (AGM),
investments and
plough back ratio
extraordinary
stable dividend policy • Timely repayment of debt
general meeting
• Growing earnings
with stated return
(EGM), annual
• Sound governance
• Established superior risk
& semi annual
and risk management management culture
report, publishing
• Transparency and integrity in
quarterly inancials
inancial reporting
and price sensitive
information (PSI) in
newspapers
Decisions are taken • Governance principles, At least one board meeting
based on inancial
policies & procedures in every month, executive
and business
formulation
committee meeting, audit
delegation of
• Strategic focus &
committee meeting,
diferent levels
value creation
Board members meet
management on various
Any major
occasions like annual & semi
decisions must be
annual business conferences,
placed to board for
bank’s anniversary celebration
approval
BANK ASIA
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sustainability report 2012
Our
stakeholders
Employees
Ways of inclusion
Business
• Inlation adjustment in
conferences, tele
pay package planning
conferences, video • Periodical salary
conference etc.
review to adjust with
cost of living index
Training,
• Proper job description
workshops and
as per individual skill
orientation
set
program
• Regular training
• Healthy working
Group emails,
environment and
intranet circulation workplace safety
• Performance driven
career progression
Government & Strict compliance
regulatory
with applicable
authorities
laws, rules and
regulations
BANK ASIA
Their priorities
Subsidiaries
• Policies
formulation
• Agreed upon
strategic goals
Business
partners
Procurement
management,
training and
communication
• Proper compliance
with laws &
regulations
• Timely reporting as
per requirement
• Timely payment of
right amount income
tax and VAT
Goals & Strategic
focuses are based on
local environment
analyses & regulatory
purview
• Fair trade, fair
enlistment,
• Sustainable and stable
growth of the bank
Our response
• Salary package adjusted
in line with market
competitiveness and
inlation
• 29,064 man hours training
for human capital in 2012.
• Well set KPIs for performance
and inherent quality analysis
• All sorts of safety measures
such as ire extinguishers,
separate stairs are available
and smoke free premise
• Ensure continuous learning
and application ground for
career build-up
We ensure proper compliance
and timely reporting to
government bodies and
regulators
We review local market and
environment before setting
its strategic priorities ensuring
proper representation from
subsidiaries
• Free from any bias or
coercion from inluencing
quarters
• Ensure fair play and
competition to award work
order
• Timely payment to vendors
sustainability report 2012
materiality mapping
Sl
Major Topics/
Indicators
Priorities
M
2 3 4
L
1
01
Financial inclusion
02
Energy consumption
03
Human capital and
talent management
04
Climate refugee
=
05
Solar energy as
renewable energy
=
06
07
=
Capital adequacy
under Basel-II Capital
accord
Bulding the
community through
education and health
support
Inluence on Stakeholder Assessments and Decisions
Bank Asia Response
80,000 beneficiaries included in banking
network under Bank Asia’s EBEK ( one
=
house one farm) program-a government
project
We are saving around 40% electricity (used
for lighting purpose) by using the day light
in our corporate office and a number of
major branches
88% of staff members are aged below 40
= years which signifies that Bank Asia is in
young, dynamic and capable hands.
we have allocated Tk. 3.00 million as our
Climate Risk Fund. In the last quarter of
2012, we have provided Tk. 0.22 million for
setting up 02 (two) deep tubewells at “Sidr”
hit area, Barguna, Barisal under “climate risk
fund” of Bank Asia
During the year 2012 we have provided
Tk. 10 million loan for setting up of solar
home systems in different rural off grid
areas in association with one of the NGOMFI partner. This electrification program
has benefitted around 650 households. The
solar panels were set up with the help of
Jagarani Chakra Foundation (JCF)
13.05% capital of risk weighted assets
= maintained against minimum capital
requirement of 10%
During the year, Bank Asia
= spent an amount of Tk. 69.45 million for the
overall betterment of the nation
01
06
02
H
5
03
07
04
05
Signiicance of Economic, Environmental and Social Impacts
BANK ASIA
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sustainability report 2012
governance,
commitment
and stakeholders
Corporate governance
Bank Asia views corporate governance issue
very seriously in every aspect of operation.
Accordingly the bank has set its policies,
procedures and processes establishing
culture of accountability and transparency
in dealing with responsibility and drive the
bank to the right direction. In Bank Asia,
corporate governance means increasing
the stakeholders’ value by being eicient &
professional to the organization, transparent
and accountable to the shareholders
and responsible to the society and the
environment. The board of directors plays a
key role in corporate governance. It is their
responsibility to endorse the organization’s
strategy, develop directional policy, appoint
and supervise senior executives and to
ensure accountability of the organization to
its owners and regulatory authorities.
Bank Asia Limited, as a publicly listed
company, is a highly regulated company
where Bangladesh Bank the central bank,
Bangladesh Securities and Exchange
Commission (BSEC) play a very signiicant
role in establishment and adherence
to norms and regulations. In this
regard Bangladesh Bank has
given guidelines for corporate
governance BRPD circular no.
06, dated February 04, 2010
emphasizing on responsibilities
and authorities of board of
directors, responsibility of the
chairman of the board etc.
and BSEC’s notiication
SEC/CMRRCD/2006158/134/Admin/44 dated
August 07, 2012 inserted
many important issues
like inclusion of independent
directors in the board of
directors and audit committee
etc., which the bank has been
complying meticulously.
Board of directors
mechanism and
independence
Bank Asia complied with
relevant guidelines of Bangladesh Bank as
well as Bangladesh Securities and Exchange
Commission while forming its board of
directors. The number of members in
the board of Bank Asia is 13 including 3
BANK ASIA
sustainability report 2012
independent directors; all of them are highly
educated, esteemed professional and/or
successful businessman with long experience
in banking industry. The Board approves
the bank’s budget and business plan and
reviews those on quarterly basis so as to give
directions as per changing economic and
market environment. The board reviews the
policies and manuals of the various segments
of businesses in order to establish efective
risk management in credit and other key
areas of operations.
Executive committee
The executive committee (EC) of the board
of Bank Asia was irst constituted in January
2010 to ensure eicient, competent,
compliant and secured structure for approval
of credit proposals and business decisions.
The number of members in executive
committee is 5 nominated by the chairman
from the directors. The EC time to time
reviews policies and guidelines issued by
Bangladesh Bank regarding credit and
other operations that are customized and
adopted by the management after approval
of the board of directors. EC approves credit
proposals as per approved policy of the
board.
Audit committee
The audit committee of the board of
Bank Asia was irst constituted in January
2003 with the objectives of generating
a platform for a compliant and secured
banking structure. Audit committee takes
up responsibilities to manage and control
various risk factors coming up from banking
operation, to strengthen the internal control
system and to act as a connecting force
between internal and external auditors
in order to bring a disciplined banking
operation. Audit committee reviews the
inancial reporting process, the system
of internal control and management, the
audit process, compliance with laws and
regulations, and its own code of business
conduct.
The audit committee also examines the
status of implementation of Bangladesh
Bank guidelines and bank’s own policies and
manuals. The audit cell of the board and the
internal audit team of the bank undertake
various special audits as per advice of the
audit committee. They also meet with the
external auditors to exchange views about
audit observations regarding internal control
over inancial reporting, tax & VAT compliance
and governance issues.
Independent director
As part of good governance in the Bank
appointment of independent director is
considered as an important instrument.
Independent directors in the board exert
an independent view on the policies and
decisions of the board and ensure that the
policies and decisions are for the best interest
of the whole bank. Bank Asia has appointed
three independent directors in the board.
They are Mr. Mohammed Lakiotullah, Mr.
A M Nurul Islam and Mr. Shah Md. Nurul
Alam. All of them are the members of the
Executive Committee and Mr. Mohammed
Lakiotullah and Mr. Shah Md. Nurul Alam are
the members of the audit committee of the
board.
Compensation committee
The compensation committee has primary
responsibility for reviewing and approving
the compensation of the President and
Managing Director and other executive
and non-executive oicers; overseeing the
company’s beneit plans; and reviewing
and making recommendations to the board
of directors. As per Bangladesh Bank BRPD
circular no. 06 dated February 04, 2010 a bank
can have only executive committee and audit
committee of the board; no other committee
can be formed, thus Bank Asia‘s board form a
separate interim committee as compensation
committee at the time of service rule
amendment, pay package review etc.
BANK ASIA
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sustainability report 2012
directors’ proile
Mr. A Rouf Chowdhury Mr. Abdur Rouf Chowdhury is a graduate in Business management from the Massachusetts
Chairman Institute of Technology, USA. He has a wide range of experience in several industries including
Automobile, Telecom, Pharmaceuticals and Petroleum. He was the Resident Manager of
two American Pharmaceutical companies in Bangladesh. Being in the senior management
position in Jamuna Oil Company he contributed for 15 years in the market development of
Petroleum products in Bangladesh. Both Rangs and Sea Resources Groups comprised of 35
companies were formed under his dynamic leadership. The huge success of 35 companies
of the two groups during a short span of time is an ample proof of his dynamic leadership
and progressive mind. Currently he is the Chairman of Bank Asia Ltd. He also has his dynamic
foothold in the print media; he is the Director of renowned English daily ‘The Daily Star’ and
Bengali daily ‘The Shokaler Khabar’.
Mr. Mohd. Safwan Mr. Mohd. Safwan Choudhury has done his Masters from the University of Dhaka. He has an
Choudhury impressive professional experience and has business interest in tea manufacturing, textile and
Vice Chairman cold storage. His lagship company M/s M. Ahmed Tea & Lands Co. Ltd. is a 4th generation
tea producing company doing business since the British India. Currently he is the Chairman
of Bangladesh Tea Association which represents 126 tea plantations belonging to both
Bangladeshi and foreign companies. Mr. Choudhury is also involved in social development.
He is the President of FIVDB, an NGO providing primary education to the underprivileged
children. He is also the past President of Sylhet Chamber of Commerce & Industry.
Mr. Mohammed Mr. Mohammed Lakiotullah is a post graduate from Dhaka University. He has almost 42 years
Lakiotullah of working experience in banking industry at diferent ranks including Managing Director of
Vice Chairman EXIM Bank and Jamuna Bank.
Ms. Hosneara Sinha Ms. Hosneara Sinha is one of the sponsor shareholders of Bank Asia. She is involved with
Director diferent business houses and organizations under Sinha group. She is the Director of Sinha
Apparels Ltd.
Mr. A M Nurul Islam Mr. A M Nurul Islam started his career as a lecturer of the University of Dhaka in 1961. Then he
Director joined Civil Services of Pakistan (CSP). He worked at diferent capacity with the then Pakistan
Government and after liberation with Bangladesh Government, he acted as Private Secretary
of the Prime Minister Bangabandhu Sheikh Mujibur Rahman. He worked as a Diplomat
of Bangladesh Embassy in Washington DC and worked in mobilization of development
inancials from the World Bank, International Monetary Fund, USAID managing the projects
worth hundreds of millions of dollars. In the more recent years, he acted as President and
CEO of Transcontinental Imex Inc. an international trading & consulting organization and as
Director and Chairman of Audit Committee in National Bank Limited.
Mr. Rumee A Hossain Mr. Rumee A Hossain is a graduate in Mechanical Engineering and an MBA in International
Director Business Management. He has more than 22 years of business experience in several industries
such as Telecom, Pharmaceuticals, IT and Publishing industry. He is the Managing Director of
Rangs Industries Ltd. (Distributor of Toshiba) and Ranks Petroleum Ltd. (Distributor of Shell
Lubricants).
BANK ASIA
sustainability report 2012
Mr. Nafees Khundker Mr. Nafees Khundker completed his MBA from the Institute of Business Administration (IBA),
Director Dhaka University. He has 18 years of banking experience mostly in the area of corporate and
institutional banking. He worked for Standard Chartered Bank and Deutsche Bank in diferent
countries including Singapore, United Arab Emirates (UAE) and Bangladesh. Recently he has
established his own business institution, SASH Ltd., which deals with jewelry, commodities,
structured trade and other inancial products. Mr. Nafees Khundker has keen interest in sports,
particularly in Tennis, Cricket and Golf.
Mr. M Irfan Syed Mr. M Irfan Syed received his Bachelor’s in Commerce from Dhaka University and his Master’s
Director in Business Administration from California University in USA. He also earned a Diploma in
Advanced Accounting from the University of Maryland, USA. Mr. Syed started his career
with Banque Indosuez, Dhaka in 1986 and then moved to Hong Kong in 1988 to take
up a position in international trade inance with the Bank of Credit and Commerce HK
Limited. After 5 years he returned to Banque Indosuez to join their trade inance team in
Dhaka. He left international banking to start his own textile trading company in 1993 and
subsequently joined Beximco Textiles Divison (BTD) in 1995 to help organize their marketing
and commercial departments. He was instrumental in the implementation and integration
of BTD’s ERP system and was appointed as the Head of their Garments Division. Then he
moved to USA in 2000. After spending almost a decade as an accountant and business head
for several non- proit organizations in the USA, Mr. Syed returned to Dhaka in August 2010 to
look after his own business.
Ms. Farhana Haq Ms. Farhana Haq Chowdhury is one of the Directors of Bank Asia Ltd. She obtained her
Chowdhury Masters in International Relations from the University of Dhaka. She holds directorship of
Director various sister concerns of Rangs Group such as Ranks Telecom Limited, Rangs Pharmaceuticals
Limited, Rancon Engineering Limited, Rancon Power & Renewable Energy Limited etc.
Ms. Naheed Akhter Ms. Naheed Akhter Sinha obtained MBA in Finance from North South University. She has been
Sinha involved with diferent business houses and organizations from her early career. She is one of
Director the sponsor shareholders of Bank Asia. She is one of the promoter and shareholder directors
of Enterprise Cluster Pte. Ltd., a Singapore-based company. She is the Chairman of SkyTel
Communications Ltd, and Director of Sinha Apparels Ltd.
Ms. Sohana Rouf Ms. Sohana Rouf Chowdhury is a Business Graduate major in Economics from New York
Chowdhury University, USA. She is one of the successful young entrepreneurs of the country. She holds
Director directorship of various sister concerns of Rangs Group such as Rangs Motors Ltd., Rangs Ltd,
etc.
Mr. Faisal Samad Mr. Faisal Samad is a business graduate of State University of New York, USA. He is a successful
Director entrepreneur who has 15 years of experience as an industrialist. He is involved with several
business organizations such as Savar Textiles Ltd., Supasox Ltd., Surma Garments Ltd., Surma
Dyeing Ltd., Multi Source and Smart Sox Ltd.
Mr. Shah Md. Nurul Mr. Shah Md. Nurul Alam obtained his MBA from the Institute of Business Administration,
Alam Dhaka University. He has a wide range of experience in the banking industry. In almost 38
Director years starting from 1972, he has worked for ive renowned banks in Bangladesh. He held the
CEO position for Southeast Bank Ltd., Prime Bank Ltd., Mercantile Bank Ltd.
Mr. Md. Mehmood Mr. Md. Mehmood Husain is the President and Managing Director of Bank Asia. Prior to this,
Husain he was the Additional Managing Director of Prime Bank Ltd. Mr. Mehmood, an ex-cadet and a
President and Managing post graduate in Economics from the University of Dhaka, started his banking career in 1984
Director with National Bank as Probationary Oicer. He has 29 years of long and diversiied banking
experience. Mr. Mehmood attended a number of professional workshops and seminars
at home and abroad. He is the member, board of Governance of Association of Bankers
Bangladesh and life member of Bangladesh Economic Association. He is associated with
various social organizations.
BANK ASIA
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sustainability report 2012
Capital structure
December 31, 2012
igure in million
Particulars
BDT
USD
Paid-up capital
6,305.75
78.82
Statutory reserve
3,503.96
43.80
Revaluation reserve
2,592.68
32.41
8.17
0.10
Retained earnings
634.62
7.93
Total shareholders'
equity
13,045.17
163.06
General reserves
Conversion rate used 1 USD equivalent to BDT 80
Position of the chairman of the board
of directors and the President and
Managing Director
The functional responsibilities of the
Chairman of the board and of the President
and Managing Director are kept separate and
independent of each other. The Chairman
is responsible for leading the board and
overseeing the entire functioning of the bank
is as per corporate governance framework.
Mr. A Rouf Chowdhury is the Chairman of the
Board. The Managing Director leads the bank
by developing, designing and implementing
the strategic plan in the most time eicient
and cost efective manner. The Managing
director is also responsible for developing
long term business plans and the day-today operation. He is accountable to the
shareholders and the board of the bank. Mr.
Md. Mehmood Husain is the President and
Managing Director.
Board remuneration and performance
evaluation
BANK ASIA
For attending the Board Meeting, Audit
Committee Meeting and Executive
Committee the Directors receive an
honorarium of Tk.5,000 each. During 2012,
the expenditures incurred related to directors
were Tk. 2,003,240 for Directors’ honorarium
and Tk.156,560 for Directors’ Traveling
purpose.
Management committee
The management committee (mancom)
is responsible for recommending strategy
and monitoring business performance of
the bank and its subsidiaries. The mancom
operates under delegated authority from the
board and membership of the management
committee consist of the president and
managing director, deputy managing
directors, c-level executives and the heads of
major operational departments.
The current number of mancom members
is 14: Mr. Md. Mehmood Husain-President
& Managing Director, Mr. Aminul IslamDeputy Managing Director, Ms. Humaira
Azam- Deputy Managing Director, Mr. Syed
Nazimuddin-Senior Executive Vice President,
Mr. Ashfaque Hasan Jamilur Rahman-Senior
Executive Vice President, Mr. Nasirul HossainSenior Executive Vice President, Mr. Md. Arfan
Ali- Senior Executive Vice President, Mr. Md.
Touhidul Alam Khan- Senior Executive Vice
President, Mr. Md. Abu Bakar Laskar- Senior
Vice President, Mr. Imran Ahmed, FCA, CISASenior Vice President, Mr. Mohammad Abdul
Qaium Khan-Senior Vice President, Mr. Md.
Zia Arin-Senior Vice President, Mr. Arequl
Arefeen-Vice President, Mr. Faisal Ahmed-First
Vice President
sustainability report 2012
ALCO
The asset liability committee –Alco,
comprising the senior management to take
strategic decisions on ixation of asset liability
pricing, responding to market scenarios.
In monthly Alco meetings, relevant issues
like economic forecast, market status, peer
group analysis, projections on interest rate
and exchange rate and spreads; balance
sheet gap in liquidity structure & interest
rate sensitivity of gap, pertinent ratio
analysis, internal transfer pricing, regulatory
& other audit compliance are discussed on
continuous basis. When needed special Alco
meetings are held to respond to the unusual
or seasonal market behavior or other volatile
market scenarios. In the year 2012, Alco sit for
total fourteen times with regular and special
agenda for balance sheet management.
Proactive measures of Alco kept the credit
deposit ratio within a comfortable range that
helped the bank to earn through foreign
exchange and money market products of
treasury line.
Credit committee
to repay debt of prospective borrowers.
As per complete and critical assessment,
the committee recommends for approval
or decline of the credit proposal and put
observations where necessary. Based on
the recommendations, credit proposals
are approved or declined by the managing
director or executive committee of the board
or the board as per delegation of authority.
SRP committee
The supervisory review process (SRP)
committee is formed under the second
pillar of Basel II capital accord. Bank Asia has
developed internal methodology to assess
requirement of additional capital to address
risks that have not been considered under
minimum capital requirement (MCR), i.e.
credit risk, operational risk and market risk.
The SRP committee is a representation of
senior management working under board.
The committee consists of nine members:
president and managing director (chairman
of the committee), chief risk oicer, chief
business oicer, chief operating oicer, chief
Bank Asia’s credit committee is formed with
a group of highly knowledgeable senior
management who are responsible for
assessing the credit worthiness and ability
Shareholding structure
December 31, 2012
Description
Sponsors & Directors
General Public
Foreign Investors
Institutions
Non Resident
Bangladeshi
Total
Nos. of
Shareholders
27
16,500
4
477
153
17,161
0.43%
21.78%
51.35%
1.44%
25%
BANK ASIA
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sustainability report 2012
business oicer -SMR, chief inancial oicer,
head of internal control and compliance,
head of treasury operations and head of
risk management. Core responsibilities of
the committee is to ensure that bank has
comprehensive internal capital adequacy
assessment process (ICAAP) and adequate
level of capital is maintained and reported
considering appropriately the level of
residual risk, concentration risk, liquidity risk,
reputational risk, strategic risk, settlement risk,
core risk guidelines risk, environmental and
climate change risk.
A separate risk management committee
(RMC) supervises day-to-day risk
identiication, mapping and mitigation.
Mechanism to provide advice to the
Board
Bank Asia maintains transparent and close
communication with its shareholders. With
this view we publish annual & semi annual
Organogram
BANK ASIA
report, publishing quarterly inancials
and price sensitive information (PSI) in
newspapers for shareholders, investors,
capital market experts, and other equity
participants in a complete, fair, accurate,
timely and understandable manner within the
framework of generally accepted accounting
principles and legislation provisions.
Our bank’s shareholders can also use
their query rights or can provide any
recommendations or direction to the board
of directors at the annual general meeting
and the board answers all questions of
shareholders. Prior to AGM, the meeting
date, venue and agenda are announced and
also the annual report is submitted to the
shareholders through our bank’s website
or through diferent channels. After getting
feedback from shareholders at AGM, the
board then directs the management to
sustainability report 2012
implement the recommendations of the
shareholders. If the Management requires
making any change in policy or practice, the
board approve those changes; otherwise
if this authority of approval is beyond the
power of the board, this can be approved
by the shareholders of Bank Asia Ltd at AGM
through voting. In applicable cases extra
ordinary general meeting (EGM) of general
shareholders may be called. So far 14 AGMs
and 8 EGMs have been successfully arranged.
p
If there is any related party transaction,
the management discloses the matter in
the Annual Report and it is also informed
to the general shareholders in AGM.
p
Executive committee of the board can
approve loan to anyone up to a limited
portion.
p
Audit committee regularly reviews the
inancial and other related statements
and gives recommendation to the
management regarding any changes in
policy and also presents to the board for
further evaluation.
p
Any disposal of assets is approved by the
board.
p
Board of directors approval is needed for
loan re-scheduling.
Avoiding conlict of interest
In inancial intuitions there exists high
possibility of arising conlicts of interest
betw
h u m a n
d i m e n s i o n s
sustainability report 2012
Bank Asia strives to spread the wave of sustainability for its
stakeholders creating ripple efects by its responsible business
planning through its dynamic network nodes and beyond
For A Better Tomorrow
BANK ASIA
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sustainability report 2012
Message
from the
Governor of
Bangladesh
Bank
BANK ASIA
sustainability report 2012
contents
4
vision | mission
5
core values | code of conduct
6
report parameter
7
strategic focus for sustainability
10
chairman’s statement
12
president and managing director’s review
14
awards and recognition
16
corporate proile
18
stakeholders engagement
21
materiality mapping
22
governance, commitment and stakeholders
24
directors’ proile
30
inancial performance
32
primary brands | products and services
42
environmental performance
48
economic performance
54
sustainable HR development
63
capital management
64
building the community
70
GRI G3.1 content index
BANK ASIA
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sustainability report 2012
vision
Bank Asia’s vision is to have a poverty free Bangladesh
in course of a generation in the new millennium,
relecting the national dream. Our vision is to
build a society where human dignity and human
rights receive the highest consideration along with
reduction of poverty.
mission
p To assist in bringing high quality service to our
customers and to participate in the growth and
expansion of our national economy.
p To set high standards of integrity and bring total
satisfaction to our clients, shareholders and
employees.
p To become the most sought after bank in the country,
rendering technology driven innovative services by
our dedicated team of professionals.
BANK ASIA
sustainability report 2012
Provide
customized
banking products
and services
code of
conduct
p
Employees must be open and loyal to the bank and bank’s interest.
p
Employees must keep conidential all bank and other matters that could provide
other third parties unauthorized access to conidential information.
p
Employees must observe the bank’s security requirements concerning access to
electronic resources and documents.
p
All information and communication with the media, the public and inancial markets
shall be reliable and correct, maintain high professional and ethical standards and in
accordance with established guidelines and regulations.
p
Customers shall be met with insight, respect, and understanding. Employees must
always try to fulill the needs of the customer in the best possible manner, within the
guidelines for corporate ethics that apply to business.
p
Under no circumstances, employees shall or be a part of any activity that prohibits
open and fair competition of Bank Asia in breach of relevant business laws.
p
Employees shall never ofer or accept illegal or inappropriate gifts or other
remuneration in order to achieve business or personal advantages.
p
Employee’s engagement in external duties must not afect his/her working
relationship with Bank Asia or come into conlict with Bank Asia’s business interest.
p
Should an employee become aware of an infringement of Bank Asia’s rules and
guidelines, he/she should blow whistle raising the issue to the line management or to
human resource department.
BANK ASIA
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sustainability report 2012
report parameter
The year 2012 reporting is our irst
sustainability report based on GRI reporting
framework G3/ G3.1 guidelines with an efort
to measure, disclose and be accountable to
internal and external stakeholders in terms of
governance, economic, environmental and
social aspects including both positive and
negative contribution.
Reporting scope
This report intends to touch upon all
signiicant environmental, economic and
social impacts resulting from Bank Asia’s
activities in the inancial year 2012. As this
is our irst sustainability report, signiicant
changes regarding scope, boundary, or
measurement methods and explanation of
the efect of any restatement of information
comparing to the previous report is not
applicable for this year.
The sustainability report will be prepared
once in a year describing activities and
achievements through-out the year.
Boundary of the report
The report boundary of the year 2012 covers
only banking operation run by corporate
oice, its branches, SME service centers and
other direct networks in Bangladesh. Impacts
of the activities of our subsidiaries, NGO
networks or our suppliers in other countries
are not within the scope of this report.
Bank Asia has two subsidiary companies,
one in Bangladesh and another in UK, but
no joint venture. As owner the Bank controls
the activities of its subsidiaries. Bank Asia
Securities Limited (BASL), a majority owned
subsidiary is incorporated in Bangladesh
and acts as a stock broker and stock dealer
in capital market. The inancial statements of
the BASL are prepared on a going concern
basis under historical cost convention in
accordance with Bangladesh Financial
Reporting Standards (BFRS).
BA Exchange Company (UK) Ltd. a wholly
owned subsidiary is incorporated in UK
and primary responsibility is remittance
channeling to Bangladesh from UK market.
Financial statements of BA Exchange UK are
prepared on a going concern basis under the
historical cost convention and in accordance
with the Financial Reporting Standards for
Smaller Entities.
Feedback
We welcome any feedback on our
sustainability reporting. For further
information and comments, please contact
Sustainability Reporting Team of the Bank
led by Mr. Imran Ahmed, FCA, CISA, CSRS,
Chief Financial Oicer, Mr. Md. Bashir Uddin
Ahmed, CSRS, First Assistant Vice President,
Finance & Accounts Division, Mr. Md. Shamim
Hasnat, Executive Oicer, Finance & Accounts
Division. They may be reached through
e-mail: sustainability@bankasia.com.bd.
Bank Asia Limited
Corporate Oice, Rangs Tower (2nd to 6th Floor)
68, Purana Paltan, Dhaka-1000, Bangladesh
Tel: +88 - 02- 7110042, +88 - 02- 7110062
E-mail: bankasia@bankasia.com.bd
Web: www.bankasia-bd.com
BANK ASIA
sustainability report 2012
strategic focus
for sustainability
Promoting
inancial inclusion
One of the strategic priorities
of Bank Asia is to promote inancial
inclusion for combating poverty which
the Bank irmly believes to achieve by its
deposit services, agricultural credit program,
small enterprise inancing for productive new
of farm employment of ‘missing middle’, Solar
home system projects with NGO-MFI partners,
foreign remittance of poor migrant workers
channeling through partner MFIs, domestic
remittance distribution through bank
led as well as mobile operation
led mobile banking
Going
green in the future
of banking
Customer
satisfaction
Bank Asia is sincere to create
higher customer satisfaction and
loyalty by its brand enhancement
programs & creating brand
ambassadors, personalized banking,
Online product innovation,
measure and reduce customer
eforts for greater value
proposition
Bank Asia irmly promotes green
banking to reach its long term strategic
objective to be a green, triple bottom line
bank where every decision will be taken with
both inancial and environmental considerations
in mind. The bank’s green banking initiatives
includes Online & paperless banking, reduction
of green house gas emission, mapping
bank’s carbon foot print, eicient energy
use, environment friendly projects,
plants nursery and horticulture
projects etc
Giving back
Bank Asia believes in giving
back to the community and
it will continue to promote
education, fulill its commitment
to community health, disaster
management, clean
environment, sports, art
and culture
BANK ASIA
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sustainability report 2012
triple
bottom line
As a player in the banking sector, Bank Asia has also incorporated three
dimensions of performance in terms of social, environmental and inancial
parameters exhibited through people, planet and proit as per global reporting
initiatives (GRI).
People
Bank Asia always plays a very active role in contributing to the society through
its CSR program, which are thoroughly illustrated in CSR section. In the context
of value creation model for its employees, the bank has made footprints by
achieving:
p Economic value added per employee is Tk. 350,061.
p 29,064 man-hours training have been provided to our employees in 2012.
Planet
As one of the strategic focuses of Bank Asia, ‘going green’ movement includes
eicient energy consumption, paperless oice, inancing renewable energy etc.
Bank Asia’s achievements in green initiatives are detailed out in green banking
section. Human resources division and training department of Bank Asia Ltd.
jointly organized two training programs on green banking in Dhaka zone. Total
number of participants were 60. HRD entered into a business partnership with our
green banking unit for the last quarter of 2012.
Proit
Economic proit of Bank Asia was Tk. 519.84 million for the year 2012.
BANK ASIA
sustainability report 2012
sustainable banking
operations: key
highlights
10,459
Children got eye sights
support through our
inancial assistance for vision
screening & ophthalmological
operations
29,064
177,604
Man hours of training
for development of our
human capital
Farmers and rural people
beneitted inancially through
our agricultural/rural credit
453
5,000
126,046
Households of rural and
semi-urban areas received
remittance of
Tk. 3,283.07 million through
our MFIs network
Households brought
under home solar system
and disbursed Tk. 171
million for this purpose
Students received support
for education under
Bank Asia’s higher studies
scholarship amounting to
Tk. 16.91 million
4,000
130,327
E-statements delivered
to customer
Rural students imparted
in ICT training from
computer learning
centers
57%
Cash transactions done
through ATM
BANK ASIA
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sustainability report 2012
chairman’s
statement
A Rouf Chowdhury
Chairman
BANK ASIA
The birth of Bank Asia
as a inancial institution
was to excel in the
economic sphere, which
impacts positively
the surroundings in a
more livable dimension
provided we are not only
individually conscious but
also collectively take our
partners along with us for
the future generation’s
survival.
sustainability report 2012
Proit is an important element, which
encourages further expansion of business but
I personally never believed proit generation
at the expense of incurring loss of the planet.
Our resources are scarce and best utilization
of these resources is to ensure maximum
value addition. We always prefer win-win
situations in every aspect of minimizing
wastage.
The bank has been maintaining supply chain
management very eiciently and ethically.
Suppliers are selected openly through
competing with peers after ensuring best
possible price and quality, which upholds the
ideology of “fair price fair trading”.
As a main function of inancial intermediation,
we deal with mobilization of fund from
surplus sector to deicit sector through
ofering best-suited and designed products
and services embracing for fulillment
of clients’ requirement. This complex
function under the purview of risk and
return can not be executed without the
existence of skilled and knowledgeable
employees. Since inception, Bank Asia
puts maximum importance on continuous
talent management, diversity & inclusion,
decent work-life balance and congenial
working environment to ensure higher
degree of motivation and digniied working
environment, which is relected in our human
capital balance sheet.
Our management of Bank Asia has
taken initiative to prepare a report on its
sustainability measures from the perspective
of economic, environment, social and
governance impacts, risks and opportunities
under strict compliance of applicable
guidelines promulgated by Global Reporting
Initiative (GRI).
I understand this initiative being for the
irst time will put our wish list and long
term aspiration of sustainability in a written
document, which is certainly not limited
looking ahead. The Board of Directors fully
appreciate and support these initiatives led
by Mr. Md. Mehmood Husain, President and
Managing Director of the Bank.
As a seal of endorsement, the board has
already approved a number of policies that
supports sustainability as well as green
banking. The followings are mention worthy:
p
Environmental and climate change
Risk as part of the existing credit risk
methodology prescribed to assess a
prospective borrower.
p
Green oice guide’ has been circulated
to all the employees that consists of
general instructions regarding eicient
use of electricity, oice supplies, proper
maintenance of wastes, recycling of
papers etc.
p
Preferences are given to inancing ecofriendly business activities and energy
eicient industries.
p
Preferences are given to inancing the
economic activities of the lood, cyclone
and drought prone areas at a reduced
interest rate without charging additional
risk premium.
p
Climate risk fund will be formed, which
will be used in case of emergency and
could be created as part of banks’ CSR
expenses.
In the end, I appreciate sustainability
reporting team for the necessary drive and
commitment to produce the report through
which our valued stakeholders will be able to
know Bank Asia’s thinking, current initiatives
and future planning about sustainability from
economic and environmental perspective.
BANK ASIA
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sustainability report 2012
president and
managing director’s
review
Bank Asia started its journey 13 years ago
with a vision of a poverty free Bangladesh
by placing highest consideration to human
rights and dignity. One of its mission
statements focuses on technology driven
services to attain ultimate excellence.
With these your bank embedded
sustainability at the core of its heart since
inception. Preparing and publishing the 1st
sustainability report as such is just another
oicial milestone.
Since incorporation in 1999, Bank Asia
embraced sustainability in its corporate
culture and consistently proved its pledge to
support communities and the environment
by taking on various social project and
inancing activities. Your bank has designed
and implemented its Online branch network
by home facilitated and customized
information communication technology
to provide safe, secure and stable banking
services.
We strive to make Bank Asia a great place
to work by creating a performance driven
culture that rewards success and encourage
employees to take control of their personal
developments. Through the process of
learning & rewarding we intend to enable
individuals to think, behave, take actions and
make decisions independently. Bank Asia
has an enabling environment and culture
where equal employment opportunity exists
evidenced by a good 28% inclusion from the
female work force, which is also growing.
Bank Asia irmly promotes green banking to
reach its long term strategic objective to be
a green, triple bottom line bank where every
decision will be taken with both inancial
and environmental considerations in mind.
The bank’s green banking initiatives include
Online & paperless banking, reduction of
BANK ASIA
sustainability report 2012
greenhouse gas emission, mapping bank’s
carbon footprint, eicient energy use,
environment friendly projects, plant nursery
and horticulture projects etc.
The bank continues its eforts to look
beyond short-term quantitative gains,
and concentrate on issues that make the
institution socially responsible, thus our allout eforts towards sustainable and balanced
growth. The bank contributed almost 3 times
in the year 2012 in comparison to previous
year. Total expenses in social projects was
Tk. 69.45 million in 2012 against Tk. 26.10
million in 2011.
towards Bank Asia’s dream for a poverty free
Bangladesh that is sustainable in economic,
social and environmental aspect.
Md. Mehmood Husain
President and Managing Director
In the end I express my sincere thanks and
gratitude to all stakeholders and sincerely
acknowledge their active engagement
BANK ASIA
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sustainability report 2012
awards and recognition
2012
BANK ASIA
p
Recognized by Bangladesh Bank as one of the top 10 commercial banks for
signiicant contribution to green banking in Bangladesh.
p
Certiicate of Merit from the Institute of Cost and Management Accountants
of Bangladesh (ICMAB) for Best Corporate Award 2012.
p
Certiicate of Merit from the Institute of Chartered Accountants of
Bangladesh (ICAB) for Best Published Accounts and Reports 2011.
sustainability report 2012
2011
p
2nd position for Best Published Accounts and Reports 2010 by ICAB
p
Certiicate of Merit award by SAFA for Best Presented Accounts and
Corporate Governance 2010.
BANK ASIA
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sustainability report 2012
corporate proile
Bank Asia Limited was incorporated on
September 28, 1999 as a private commercial
bank with the aim of contributing for the
development of the economy by bringing
superior quality technology driven banking
products and services.
In 2001 Bank Asia set a milestone by acquiring
the Bangladesh operations of the Bank of
Nova Scotia of Canada, irst in the banking
history of Bangladesh. At the beginning of
the year 2002, the bank again acquired the
Bangladesh operations of Muslim Commercial
Bank Limited of Pakistan.
Bank Asia has associated Islamic banking,
Of-shore banking, SME inancing & many
more specialized services with its core
banking activities. To excel in this new era
of technological triumph, Bank Asia has
successfully introduced mobile banking,
cutting edge ICT, state of the art network
solution, 24/7 ATM service & many other
e-products.
Bank Asia maintains an environment of
strong corporate governance that helps to
maintain its excellent brand image; relected
by consistent inancial performance for its
stakeholders. To attain sustainability we focus
more on strategic priorities measured by
quantitative and qualitative determinants.
Besides maintaining a steady growth Bank
Asia always prioritized in the structural and
moral development of the society. From
the very beginning it started its corporate
social responsibility (CSR) activities for the
development of our country’s unprivileged
segments in the areas of education, health,
environment, sports, arts & cultures and the
likes.
BANK ASIA
Nature of ownership and legal form
Bank Asia Limited was formed as a public
limited company under the Companies
Act 1994, and governed by the Banking
Companies Act 1991. The bank obtained
certiicate of incorporation on September
28, 1999 and banking license on October
06, 1999. It went for public ofering on
September 23, 2003 when its shares were
listed with Dhaka Stock Exchange (DSE) and
Chittagong Stock Exchange (CSE).
No signiicant changes have been taken place
during the reporting period regarding size,
structure, ownership of Bank Asia.
Number of countries where the
organization operates
Bank Asia runs its operation only in
Bangladesh. However, the bank has a fully
owned subsidiary named ‘BA Exchange
Co. (UK) Limited’ to facilitate as speedy and
dependable medium for remitting the hardearned money of expatriates back home. Its
started its operation in London on May 16,
2011.
Scale of the reporting organization
As of the end of 2012, our Bank’s operating
proit is Tk. 5,051.81 million and total assets
are Tk. 140,361.37 million. The Bank’s capital
adequacy ratio is 13.05%
Number of employees
Number of branches
Total operating
income
Total debt & equity
Number of ATMs
Number of credit
cards
SME centre
Number of debit cards
1,523 (1,485 of Bank &
38 of Subsidiaries)
73
7,821million
127,316.20 & 13,045.17
million
70 own & 2950 shared
26,576
6
150,708
sustainability report 2012
Branch network
Currently we have 79 branches and SME
service centers across the country spread over
diferent zones that includes 69 branches, 4
SME agricultural branch and 6 SME service
centers. Geographically 44 are placed in
capital Dhaka, 21 in Chittagong the 2nd largest
commercial hub after Dhaka, 6 in Sylhet zone
one of the leading remittance low area, 3 in
Khulna zone the 2nd international port city and
adjacent to worlds largest mangrove forest,
4 in Rajshahi the silk city and world’s inest
mango production area and 1 in Barisal the
main rice producing center of Bangladesh.
All these branches and SME centers are
eiciently supervised and monitored by 5
cluster mentors who take care of their overall
performance indicators on a regular basis.
Every year on an average 10 new branches
are added to our branch network.
World’s largest
Mangrove forest
‘Sundarban’
Cox’s Bazar
2nd largest
commercial
hub
World’s
longest
Sea beach
Branches Network
Membership with associations
p
p
p
p
Bangladesh Institute of Bank Management
(BIBM)
Bangladesh Association of Banks (BAB)
Association of Bankers Bangladesh (ABB)
The Institute of Bankers Bangladesh (IBA)
p
p
p
The American Chamber of Commerce in
Bangladesh (AmCham)
Bangladesh Foreign Exchange Dealers’
Association (BAFEDA)
Bangladesh Association of Publicly Listed
Companies (BAPLC).
Organizational structure
BANK ASIA
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sustainability report 2012
stakeholders
engagement
Bank Asia believes in the proper stakeholders
engagement in every aspects of its banking
activities. We identify our stakeholders
conducting thorough impact analyses in
respect of
p
Responsibility; Bank Asia has direct legal
responsibility to regulators, tax authority
etc.
p
Inluence; decision making of the bank is
inluenced to reach its intended goals by
shareholders and employees etc.
p
Proximity; the local community that
inluence heavily our daily operation
p
Dependency; those who are dependent
on our operational performance, e.g
business partners, and those whom we are
dependent, e.g customers
p
Representation; those who represent Bank
Asia to the outside world, e.g employees,
board and those whom we face for various
decision making purposes. e.g business
association leaders, local community
leaders
Impact analyses from the aspects of
governance, economic, environment and
social inluences help us recognize and
respond to emerging risks and opportunities
and meet the expectations of those
who shape our operating environment.
Continuous engagement with stakeholders is
integral to the success of our business.
We prioritize stakeholders’ issues based on
materiality mapping determining the level
of relevance and signiicance on economic,
environmental, social and inancial impacts.
The following table discusses on various
aspects of stakeholders, their engagement
process and our response:
Business
Partners
Subsidiaries
Our stakeholders
BANK ASIA
sustainability report 2012
Our
stakeholders
Customers
Local
communities
Shareholders/
investors
Board &
management
Ways of inclusion
• Customer
feedback
management
• Ongoing
market research
and product
innovation
Their priorities
Our response
• Good return from
deposits
• Fast services delivery
with excellence
• Preferential pricing,
charges and
commission
• Strict Shariah
compliance in Islamic
products and services
• Product varieties
catering market
demand
• Online banking
solutions with secured
transactions, privacy
and conidentiality
• ALCO sits every month to
decide pricing and rates
based on market analyses
• All network nodes are run by
online core banking system
(CBS)
• E products like mobile
banking, internet banking,
tele banking, electronic fund
transfer, etc. ensures hi-tech
banking needs
• Separate online CBS for
Islamic products
• Front desks and relationship
managers ensures fast and
high quality service delivery
following one to one
relationship.
• CSR activities
• Compensation for
• Strongly consider
• Scholarship
adverse direct or
environmental and social
indirect impact for
impact and restrain from
bank’s activities
adverse impact upon society
• Support to under
• Target segment is
privileged people
underdeveloped and under
• Support to basic need privileged people
for living
• Signiicant contribution
to education, health,
disaster management and
environmental sector
Annual general
• Healthy return on
• Maintained attractive
meeting (AGM),
investments and
plough back ratio
extraordinary
stable dividend policy • Timely repayment of debt
general meeting
• Growing earnings
with stated return
(EGM), annual
• Sound governance
• Established superior risk
& semi annual
and risk management management culture
report, publishing
• Transparency and integrity in
quarterly inancials
inancial reporting
and price sensitive
information (PSI) in
newspapers
Decisions are taken • Governance principles, At least one board meeting
based on inancial
policies & procedures in every month, executive
and business
formulation
committee meeting, audit
delegation of
• Strategic focus &
committee meeting,
diferent levels
value creation
Board members meet
management on various
Any major
occasions like annual & semi
decisions must be
annual business conferences,
placed to board for
bank’s anniversary celebration
approval
BANK ASIA
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sustainability report 2012
Our
stakeholders
Employees
Ways of inclusion
Business
• Inlation adjustment in
conferences, tele
pay package planning
conferences, video • Periodical salary
conference etc.
review to adjust with
cost of living index
Training,
• Proper job description
workshops and
as per individual skill
orientation
set
program
• Regular training
• Healthy working
Group emails,
environment and
intranet circulation workplace safety
• Performance driven
career progression
Government & Strict compliance
regulatory
with applicable
authorities
laws, rules and
regulations
BANK ASIA
Their priorities
Subsidiaries
• Policies
formulation
• Agreed upon
strategic goals
Business
partners
Procurement
management,
training and
communication
• Proper compliance
with laws &
regulations
• Timely reporting as
per requirement
• Timely payment of
right amount income
tax and VAT
Goals & Strategic
focuses are based on
local environment
analyses & regulatory
purview
• Fair trade, fair
enlistment,
• Sustainable and stable
growth of the bank
Our response
• Salary package adjusted
in line with market
competitiveness and
inlation
• 29,064 man hours training
for human capital in 2012.
• Well set KPIs for performance
and inherent quality analysis
• All sorts of safety measures
such as ire extinguishers,
separate stairs are available
and smoke free premise
• Ensure continuous learning
and application ground for
career build-up
We ensure proper compliance
and timely reporting to
government bodies and
regulators
We review local market and
environment before setting
its strategic priorities ensuring
proper representation from
subsidiaries
• Free from any bias or
coercion from inluencing
quarters
• Ensure fair play and
competition to award work
order
• Timely payment to vendors
sustainability report 2012
materiality mapping
Sl
Major Topics/
Indicators
Priorities
M
2 3 4
L
1
01
Financial inclusion
02
Energy consumption
03
Human capital and
talent management
04
Climate refugee
=
05
Solar energy as
renewable energy
=
06
07
=
Capital adequacy
under Basel-II Capital
accord
Bulding the
community through
education and health
support
Inluence on Stakeholder Assessments and Decisions
Bank Asia Response
80,000 beneficiaries included in banking
network under Bank Asia’s EBEK ( one
=
house one farm) program-a government
project
We are saving around 40% electricity (used
for lighting purpose) by using the day light
in our corporate office and a number of
major branches
88% of staff members are aged below 40
= years which signifies that Bank Asia is in
young, dynamic and capable hands.
we have allocated Tk. 3.00 million as our
Climate Risk Fund. In the last quarter of
2012, we have provided Tk. 0.22 million for
setting up 02 (two) deep tubewells at “Sidr”
hit area, Barguna, Barisal under “climate risk
fund” of Bank Asia
During the year 2012 we have provided
Tk. 10 million loan for setting up of solar
home systems in different rural off grid
areas in association with one of the NGOMFI partner. This electrification program
has benefitted around 650 households. The
solar panels were set up with the help of
Jagarani Chakra Foundation (JCF)
13.05% capital of risk weighted assets
= maintained against minimum capital
requirement of 10%
During the year, Bank Asia
= spent an amount of Tk. 69.45 million for the
overall betterment of the nation
01
06
02
H
5
03
07
04
05
Signiicance of Economic, Environmental and Social Impacts
BANK ASIA
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sustainability report 2012
governance,
commitment
and stakeholders
Corporate governance
Bank Asia views corporate governance issue
very seriously in every aspect of operation.
Accordingly the bank has set its policies,
procedures and processes establishing
culture of accountability and transparency
in dealing with responsibility and drive the
bank to the right direction. In Bank Asia,
corporate governance means increasing
the stakeholders’ value by being eicient &
professional to the organization, transparent
and accountable to the shareholders
and responsible to the society and the
environment. The board of directors plays a
key role in corporate governance. It is their
responsibility to endorse the organization’s
strategy, develop directional policy, appoint
and supervise senior executives and to
ensure accountability of the organization to
its owners and regulatory authorities.
Bank Asia Limited, as a publicly listed
company, is a highly regulated company
where Bangladesh Bank the central bank,
Bangladesh Securities and Exchange
Commission (BSEC) play a very signiicant
role in establishment and adherence
to norms and regulations. In this
regard Bangladesh Bank has
given guidelines for corporate
governance BRPD circular no.
06, dated February 04, 2010
emphasizing on responsibilities
and authorities of board of
directors, responsibility of the
chairman of the board etc.
and BSEC’s notiication
SEC/CMRRCD/2006158/134/Admin/44 dated
August 07, 2012 inserted
many important issues
like inclusion of independent
directors in the board of
directors and audit committee
etc., which the bank has been
complying meticulously.
Board of directors
mechanism and
independence
Bank Asia complied with
relevant guidelines of Bangladesh Bank as
well as Bangladesh Securities and Exchange
Commission while forming its board of
directors. The number of members in
the board of Bank Asia is 13 including 3
BANK ASIA
sustainability report 2012
independent directors; all of them are highly
educated, esteemed professional and/or
successful businessman with long experience
in banking industry. The Board approves
the bank’s budget and business plan and
reviews those on quarterly basis so as to give
directions as per changing economic and
market environment. The board reviews the
policies and manuals of the various segments
of businesses in order to establish efective
risk management in credit and other key
areas of operations.
Executive committee
The executive committee (EC) of the board
of Bank Asia was irst constituted in January
2010 to ensure eicient, competent,
compliant and secured structure for approval
of credit proposals and business decisions.
The number of members in executive
committee is 5 nominated by the chairman
from the directors. The EC time to time
reviews policies and guidelines issued by
Bangladesh Bank regarding credit and
other operations that are customized and
adopted by the management after approval
of the board of directors. EC approves credit
proposals as per approved policy of the
board.
Audit committee
The audit committee of the board of
Bank Asia was irst constituted in January
2003 with the objectives of generating
a platform for a compliant and secured
banking structure. Audit committee takes
up responsibilities to manage and control
various risk factors coming up from banking
operation, to strengthen the internal control
system and to act as a connecting force
between internal and external auditors
in order to bring a disciplined banking
operation. Audit committee reviews the
inancial reporting process, the system
of internal control and management, the
audit process, compliance with laws and
regulations, and its own code of business
conduct.
The audit committee also examines the
status of implementation of Bangladesh
Bank guidelines and bank’s own policies and
manuals. The audit cell of the board and the
internal audit team of the bank undertake
various special audits as per advice of the
audit committee. They also meet with the
external auditors to exchange views about
audit observations regarding internal control
over inancial reporting, tax & VAT compliance
and governance issues.
Independent director
As part of good governance in the Bank
appointment of independent director is
considered as an important instrument.
Independent directors in the board exert
an independent view on the policies and
decisions of the board and ensure that the
policies and decisions are for the best interest
of the whole bank. Bank Asia has appointed
three independent directors in the board.
They are Mr. Mohammed Lakiotullah, Mr.
A M Nurul Islam and Mr. Shah Md. Nurul
Alam. All of them are the members of the
Executive Committee and Mr. Mohammed
Lakiotullah and Mr. Shah Md. Nurul Alam are
the members of the audit committee of the
board.
Compensation committee
The compensation committee has primary
responsibility for reviewing and approving
the compensation of the President and
Managing Director and other executive
and non-executive oicers; overseeing the
company’s beneit plans; and reviewing
and making recommendations to the board
of directors. As per Bangladesh Bank BRPD
circular no. 06 dated February 04, 2010 a bank
can have only executive committee and audit
committee of the board; no other committee
can be formed, thus Bank Asia‘s board form a
separate interim committee as compensation
committee at the time of service rule
amendment, pay package review etc.
BANK ASIA
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sustainability report 2012
directors’ proile
Mr. A Rouf Chowdhury Mr. Abdur Rouf Chowdhury is a graduate in Business management from the Massachusetts
Chairman Institute of Technology, USA. He has a wide range of experience in several industries including
Automobile, Telecom, Pharmaceuticals and Petroleum. He was the Resident Manager of
two American Pharmaceutical companies in Bangladesh. Being in the senior management
position in Jamuna Oil Company he contributed for 15 years in the market development of
Petroleum products in Bangladesh. Both Rangs and Sea Resources Groups comprised of 35
companies were formed under his dynamic leadership. The huge success of 35 companies
of the two groups during a short span of time is an ample proof of his dynamic leadership
and progressive mind. Currently he is the Chairman of Bank Asia Ltd. He also has his dynamic
foothold in the print media; he is the Director of renowned English daily ‘The Daily Star’ and
Bengali daily ‘The Shokaler Khabar’.
Mr. Mohd. Safwan Mr. Mohd. Safwan Choudhury has done his Masters from the University of Dhaka. He has an
Choudhury impressive professional experience and has business interest in tea manufacturing, textile and
Vice Chairman cold storage. His lagship company M/s M. Ahmed Tea & Lands Co. Ltd. is a 4th generation
tea producing company doing business since the British India. Currently he is the Chairman
of Bangladesh Tea Association which represents 126 tea plantations belonging to both
Bangladeshi and foreign companies. Mr. Choudhury is also involved in social development.
He is the President of FIVDB, an NGO providing primary education to the underprivileged
children. He is also the past President of Sylhet Chamber of Commerce & Industry.
Mr. Mohammed Mr. Mohammed Lakiotullah is a post graduate from Dhaka University. He has almost 42 years
Lakiotullah of working experience in banking industry at diferent ranks including Managing Director of
Vice Chairman EXIM Bank and Jamuna Bank.
Ms. Hosneara Sinha Ms. Hosneara Sinha is one of the sponsor shareholders of Bank Asia. She is involved with
Director diferent business houses and organizations under Sinha group. She is the Director of Sinha
Apparels Ltd.
Mr. A M Nurul Islam Mr. A M Nurul Islam started his career as a lecturer of the University of Dhaka in 1961. Then he
Director joined Civil Services of Pakistan (CSP). He worked at diferent capacity with the then Pakistan
Government and after liberation with Bangladesh Government, he acted as Private Secretary
of the Prime Minister Bangabandhu Sheikh Mujibur Rahman. He worked as a Diplomat
of Bangladesh Embassy in Washington DC and worked in mobilization of development
inancials from the World Bank, International Monetary Fund, USAID managing the projects
worth hundreds of millions of dollars. In the more recent years, he acted as President and
CEO of Transcontinental Imex Inc. an international trading & consulting organization and as
Director and Chairman of Audit Committee in National Bank Limited.
Mr. Rumee A Hossain Mr. Rumee A Hossain is a graduate in Mechanical Engineering and an MBA in International
Director Business Management. He has more than 22 years of business experience in several industries
such as Telecom, Pharmaceuticals, IT and Publishing industry. He is the Managing Director of
Rangs Industries Ltd. (Distributor of Toshiba) and Ranks Petroleum Ltd. (Distributor of Shell
Lubricants).
BANK ASIA
sustainability report 2012
Mr. Nafees Khundker Mr. Nafees Khundker completed his MBA from the Institute of Business Administration (IBA),
Director Dhaka University. He has 18 years of banking experience mostly in the area of corporate and
institutional banking. He worked for Standard Chartered Bank and Deutsche Bank in diferent
countries including Singapore, United Arab Emirates (UAE) and Bangladesh. Recently he has
established his own business institution, SASH Ltd., which deals with jewelry, commodities,
structured trade and other inancial products. Mr. Nafees Khundker has keen interest in sports,
particularly in Tennis, Cricket and Golf.
Mr. M Irfan Syed Mr. M Irfan Syed received his Bachelor’s in Commerce from Dhaka University and his Master’s
Director in Business Administration from California University in USA. He also earned a Diploma in
Advanced Accounting from the University of Maryland, USA. Mr. Syed started his career
with Banque Indosuez, Dhaka in 1986 and then moved to Hong Kong in 1988 to take
up a position in international trade inance with the Bank of Credit and Commerce HK
Limited. After 5 years he returned to Banque Indosuez to join their trade inance team in
Dhaka. He left international banking to start his own textile trading company in 1993 and
subsequently joined Beximco Textiles Divison (BTD) in 1995 to help organize their marketing
and commercial departments. He was instrumental in the implementation and integration
of BTD’s ERP system and was appointed as the Head of their Garments Division. Then he
moved to USA in 2000. After spending almost a decade as an accountant and business head
for several non- proit organizations in the USA, Mr. Syed returned to Dhaka in August 2010 to
look after his own business.
Ms. Farhana Haq Ms. Farhana Haq Chowdhury is one of the Directors of Bank Asia Ltd. She obtained her
Chowdhury Masters in International Relations from the University of Dhaka. She holds directorship of
Director various sister concerns of Rangs Group such as Ranks Telecom Limited, Rangs Pharmaceuticals
Limited, Rancon Engineering Limited, Rancon Power & Renewable Energy Limited etc.
Ms. Naheed Akhter Ms. Naheed Akhter Sinha obtained MBA in Finance from North South University. She has been
Sinha involved with diferent business houses and organizations from her early career. She is one of
Director the sponsor shareholders of Bank Asia. She is one of the promoter and shareholder directors
of Enterprise Cluster Pte. Ltd., a Singapore-based company. She is the Chairman of SkyTel
Communications Ltd, and Director of Sinha Apparels Ltd.
Ms. Sohana Rouf Ms. Sohana Rouf Chowdhury is a Business Graduate major in Economics from New York
Chowdhury University, USA. She is one of the successful young entrepreneurs of the country. She holds
Director directorship of various sister concerns of Rangs Group such as Rangs Motors Ltd., Rangs Ltd,
etc.
Mr. Faisal Samad Mr. Faisal Samad is a business graduate of State University of New York, USA. He is a successful
Director entrepreneur who has 15 years of experience as an industrialist. He is involved with several
business organizations such as Savar Textiles Ltd., Supasox Ltd., Surma Garments Ltd., Surma
Dyeing Ltd., Multi Source and Smart Sox Ltd.
Mr. Shah Md. Nurul Mr. Shah Md. Nurul Alam obtained his MBA from the Institute of Business Administration,
Alam Dhaka University. He has a wide range of experience in the banking industry. In almost 38
Director years starting from 1972, he has worked for ive renowned banks in Bangladesh. He held the
CEO position for Southeast Bank Ltd., Prime Bank Ltd., Mercantile Bank Ltd.
Mr. Md. Mehmood Mr. Md. Mehmood Husain is the President and Managing Director of Bank Asia. Prior to this,
Husain he was the Additional Managing Director of Prime Bank Ltd. Mr. Mehmood, an ex-cadet and a
President and Managing post graduate in Economics from the University of Dhaka, started his banking career in 1984
Director with National Bank as Probationary Oicer. He has 29 years of long and diversiied banking
experience. Mr. Mehmood attended a number of professional workshops and seminars
at home and abroad. He is the member, board of Governance of Association of Bankers
Bangladesh and life member of Bangladesh Economic Association. He is associated with
various social organizations.
BANK ASIA
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sustainability report 2012
Capital structure
December 31, 2012
igure in million
Particulars
BDT
USD
Paid-up capital
6,305.75
78.82
Statutory reserve
3,503.96
43.80
Revaluation reserve
2,592.68
32.41
8.17
0.10
Retained earnings
634.62
7.93
Total shareholders'
equity
13,045.17
163.06
General reserves
Conversion rate used 1 USD equivalent to BDT 80
Position of the chairman of the board
of directors and the President and
Managing Director
The functional responsibilities of the
Chairman of the board and of the President
and Managing Director are kept separate and
independent of each other. The Chairman
is responsible for leading the board and
overseeing the entire functioning of the bank
is as per corporate governance framework.
Mr. A Rouf Chowdhury is the Chairman of the
Board. The Managing Director leads the bank
by developing, designing and implementing
the strategic plan in the most time eicient
and cost efective manner. The Managing
director is also responsible for developing
long term business plans and the day-today operation. He is accountable to the
shareholders and the board of the bank. Mr.
Md. Mehmood Husain is the President and
Managing Director.
Board remuneration and performance
evaluation
BANK ASIA
For attending the Board Meeting, Audit
Committee Meeting and Executive
Committee the Directors receive an
honorarium of Tk.5,000 each. During 2012,
the expenditures incurred related to directors
were Tk. 2,003,240 for Directors’ honorarium
and Tk.156,560 for Directors’ Traveling
purpose.
Management committee
The management committee (mancom)
is responsible for recommending strategy
and monitoring business performance of
the bank and its subsidiaries. The mancom
operates under delegated authority from the
board and membership of the management
committee consist of the president and
managing director, deputy managing
directors, c-level executives and the heads of
major operational departments.
The current number of mancom members
is 14: Mr. Md. Mehmood Husain-President
& Managing Director, Mr. Aminul IslamDeputy Managing Director, Ms. Humaira
Azam- Deputy Managing Director, Mr. Syed
Nazimuddin-Senior Executive Vice President,
Mr. Ashfaque Hasan Jamilur Rahman-Senior
Executive Vice President, Mr. Nasirul HossainSenior Executive Vice President, Mr. Md. Arfan
Ali- Senior Executive Vice President, Mr. Md.
Touhidul Alam Khan- Senior Executive Vice
President, Mr. Md. Abu Bakar Laskar- Senior
Vice President, Mr. Imran Ahmed, FCA, CISASenior Vice President, Mr. Mohammad Abdul
Qaium Khan-Senior Vice President, Mr. Md.
Zia Arin-Senior Vice President, Mr. Arequl
Arefeen-Vice President, Mr. Faisal Ahmed-First
Vice President
sustainability report 2012
ALCO
The asset liability committee –Alco,
comprising the senior management to take
strategic decisions on ixation of asset liability
pricing, responding to market scenarios.
In monthly Alco meetings, relevant issues
like economic forecast, market status, peer
group analysis, projections on interest rate
and exchange rate and spreads; balance
sheet gap in liquidity structure & interest
rate sensitivity of gap, pertinent ratio
analysis, internal transfer pricing, regulatory
& other audit compliance are discussed on
continuous basis. When needed special Alco
meetings are held to respond to the unusual
or seasonal market behavior or other volatile
market scenarios. In the year 2012, Alco sit for
total fourteen times with regular and special
agenda for balance sheet management.
Proactive measures of Alco kept the credit
deposit ratio within a comfortable range that
helped the bank to earn through foreign
exchange and money market products of
treasury line.
Credit committee
to repay debt of prospective borrowers.
As per complete and critical assessment,
the committee recommends for approval
or decline of the credit proposal and put
observations where necessary. Based on
the recommendations, credit proposals
are approved or declined by the managing
director or executive committee of the board
or the board as per delegation of authority.
SRP committee
The supervisory review process (SRP)
committee is formed under the second
pillar of Basel II capital accord. Bank Asia has
developed internal methodology to assess
requirement of additional capital to address
risks that have not been considered under
minimum capital requirement (MCR), i.e.
credit risk, operational risk and market risk.
The SRP committee is a representation of
senior management working under board.
The committee consists of nine members:
president and managing director (chairman
of the committee), chief risk oicer, chief
business oicer, chief operating oicer, chief
Bank Asia’s credit committee is formed with
a group of highly knowledgeable senior
management who are responsible for
assessing the credit worthiness and ability
Shareholding structure
December 31, 2012
Description
Sponsors & Directors
General Public
Foreign Investors
Institutions
Non Resident
Bangladeshi
Total
Nos. of
Shareholders
27
16,500
4
477
153
17,161
0.43%
21.78%
51.35%
1.44%
25%
BANK ASIA
27
28
sustainability report 2012
business oicer -SMR, chief inancial oicer,
head of internal control and compliance,
head of treasury operations and head of
risk management. Core responsibilities of
the committee is to ensure that bank has
comprehensive internal capital adequacy
assessment process (ICAAP) and adequate
level of capital is maintained and reported
considering appropriately the level of
residual risk, concentration risk, liquidity risk,
reputational risk, strategic risk, settlement risk,
core risk guidelines risk, environmental and
climate change risk.
A separate risk management committee
(RMC) supervises day-to-day risk
identiication, mapping and mitigation.
Mechanism to provide advice to the
Board
Bank Asia maintains transparent and close
communication with its shareholders. With
this view we publish annual & semi annual
Organogram
BANK ASIA
report, publishing quarterly inancials
and price sensitive information (PSI) in
newspapers for shareholders, investors,
capital market experts, and other equity
participants in a complete, fair, accurate,
timely and understandable manner within the
framework of generally accepted accounting
principles and legislation provisions.
Our bank’s shareholders can also use
their query rights or can provide any
recommendations or direction to the board
of directors at the annual general meeting
and the board answers all questions of
shareholders. Prior to AGM, the meeting
date, venue and agenda are announced and
also the annual report is submitted to the
shareholders through our bank’s website
or through diferent channels. After getting
feedback from shareholders at AGM, the
board then directs the management to
sustainability report 2012
implement the recommendations of the
shareholders. If the Management requires
making any change in policy or practice, the
board approve those changes; otherwise
if this authority of approval is beyond the
power of the board, this can be approved
by the shareholders of Bank Asia Ltd at AGM
through voting. In applicable cases extra
ordinary general meeting (EGM) of general
shareholders may be called. So far 14 AGMs
and 8 EGMs have been successfully arranged.
p
If there is any related party transaction,
the management discloses the matter in
the Annual Report and it is also informed
to the general shareholders in AGM.
p
Executive committee of the board can
approve loan to anyone up to a limited
portion.
p
Audit committee regularly reviews the
inancial and other related statements
and gives recommendation to the
management regarding any changes in
policy and also presents to the board for
further evaluation.
p
Any disposal of assets is approved by the
board.
p
Board of directors approval is needed for
loan re-scheduling.
Avoiding conlict of interest
In inancial intuitions there exists high
possibility of arising conlicts of interest
betw