Cash in hand and balances with <strong>Bangla</strong>desh <strong>Bank</strong> and its agent bank(s) (including foreign currencies) As at 31 December 2010, cash in hand and balances with <strong>Bangla</strong>desh <strong>Bank</strong> and its agent banks (including foreign currencies) stood at Taka 10,019.7 million as against Taka 6,653.9 million of 2009 registering a growth by Taka 3,365.8 million or 50.6%. The increased cash was required to provide uninterrupted cash services to our growing customers through multiple delivery channels. Online transaction facilities with 96 branches, 1,100 units of ATMs, 50 Fast Tracks and growing number of account holders substantially increased cash requirement in branches and ATMs. Substantial growth in deposits and the increase of CRR by 0.50% at the end of 2010 by <strong>Bangla</strong>desh <strong>Bank</strong> required higher balance with <strong>Bangla</strong>desh <strong>Bank</strong> to maintain the increased CRR. Balance with other banks and financial institutions The Treasury Division of the <strong>Bank</strong> has to maintain some special notice deposits (SND) accounts and current deposits (CD) accounts with other banks and financial institutions in and outside the country for smooth functioning of treasury operations and trade finance. A portion of the excess fund, if any, after meeting the requirement to finance loan portfolio and investments including SLR is placed with other banks and financial institutions as term deposits for optimizing the profit of the <strong>Bank</strong>. As at 31 December 2010, balance outstanding with other banks and financial institutions substantially decreased to Taka 2,695.8 million from Taka 10,213.8 million at the end of 2009 for higher utilization of funds in loan portfolio. Money at call and short notice Money at call and short notice stood at Taka 1,400.0 million at the end of 2010 compared to Taka 820.0 million at the end of 2009. The average yield on fund placement at call and short notice of the <strong>Bank</strong> was 6.61% for 2010 as against 8.06% for 2009. Short term excess fund is placed in money market to augment the return on fund. Investments The <strong>Bank</strong>'s investments stood at Taka 11,001.6 million at the end of 2010 that was higher by 13.6% from Taka 9,685.9 million of 2009. The investments mainly included Government securities for Taka 9,738.6 million (88.5% of total investments) maintained mainly to cover SLR requirement. In addition, investments were planned in a way to provide sufficient liquidity and flexibility in treasury operations and to boost the income from investments as well as the total profitability of the <strong>Bank</strong>. Treasury team of the <strong>Bank</strong> was very much watchful to manage market risk & uncertainty and ensure maximum return from investments in security, bonds, term deposits and call money market though there was higher level of liquidity prevailing in the market until before last quarter of 2010. The <strong>Bank</strong> was able to maintain cash reserve requirement (CRR) and statutory liquidity ratio (SLR) successfully throughout the year though the money market witnessed acute liquidity crisis in December 2010 to meet the increased CRR by 0.50% required by <strong>Bangla</strong>desh <strong>Bank</strong> with effect from 15 December 2010. Loans and advances Loans and advances of the <strong>Bank</strong> stood at Taka 67,657.7 million at the end of 2010, a growth of 39.8% over Taka 48,411.0 million in 2009. The <strong>Bank</strong> continued to diversify its portfolio in 2010 to have a diversified client base and portfolio distributed across the sectors to reduce client specific and industry specific concentration and to reduce overall portfolio risk. Considering future market direction and to capitalize on our robust IT platform and the strongest ATM network, a number of retail and SME loan products aimed at specific target groups were launched in 2010 to augment fee income and improve yield and spread on total loan portfolio. At the end of 2010, DBBL's total outstanding loans to SME stood at Taka 18,879.6 million compared to Taka 9,694.8 million of 2009. At the end of 2010, DBBL's total outstanding retail portfolio stood at Taka 1,535.0 million compared to Taka 1,229.3 million of 2009. Weighted average rate of return on total loans and advances decreased to 11.55% in 2010 from 12.96% in 2009.Classified loans as a percentage of total loan portfolio remained unchanged at 2.46% at the end of 2010. However, full provision was made against classified loans. Serious efforts are being continued to bring down the amount and percentage of classified loan further by exploring all options including legal actions and out of court settlements depending on the merit of the cases.
Total liabilities The <strong>Bank</strong>'s liabilities (except shareholders' equity) as at 31 December 2010 increased to Taka 94,180.6 million compared to Taka 77,436.6 million at the end of 2009 showing a growth of 21.6% Deposit is the biggest component of liabilities which increased to 88.4% of the total liabilities from 87.5% in 2009.