Director's report - Dutch-Bangla Bank Limited

directors'
report

directors' report
Bismillahir Rahmanir Rahim
Dear Fellow Shareholders
The Board of Directors is pleased to welcome the
honorable shareholders in the 14th Annual General
Meeting of the Bank. The Directors' Report along
with audited financial statements and auditors' report
thereon for the year ended December 31, 2009 are
presented before your kind self.
In the report, DBBL's operational performance of
2009 as compared to 2008 has been evaluated and
analyzed within the prevailing business environment.
The information and analysis may be read in
conjunction with the DBBL's audited financial
statements which have been prepared in accordance
with Bangladesh Accounting Standards, Bangladesh
Financial Reporting Standards and applicable legal
and regulatory requirements.
REVIEW OF BUSINESS OPERATIONS AND
STRATEGY
Principal activities
The principal activities of DBBL are to provide all
kinds of commercial banking products and services to
the customers including project finance, working
capital finance and trade finance for corporate
customers, SME loans to small traders & businesses;
and house building loan, car loan and wide range of
life style and need based loans for retail customers.
There are various deposit products particularly
suitable for retail and institutional customers. DBBL's
state-of-the-art IT platform and online banking
system provide the largest ATM network and POS
services of the country through which customers are
getting any-branch and anytime banking for 24 hours
a day and 365 days a year. IT network also provides
SMS banking, alert banking and internet banking
services. Debit cards of MasterCard World wide debit
and credit cards of VISA International and DBBL's
proprietary cards are in operation. In addition,
international cards (VISA & MasterCard) of different
local & international banks are accepted at DBBL's
ATMs for withdrawal of money and at POS terminals
for payments of shopping, hotel and dining bills etc.
DBBL introduced EMV based computer Chip Cards for
the first time in Bangladesh in 2009. The EMV feature
shields DBBL customers from any kind of frauds as
per the guidelines provided by MasterCard & VISA.
Strategic plan for positioning the company
for future growth through capacity building
As part of its strategic plan, DBBL continued to invest
heavily to improve and expand IT network, ATM
services and card services along with branch
network, business promotion and CSR activities.
Though expenses on such investments in 2009
apparently reduced expected profit growth, however,
these will substantially improve our capacity to
deliver customer services with a wide range of
products and services that can be matched with the
best in the industry by strengthening IT platform,
expanding distribution channels and communication
networks and improving productivity. DBBL's
strategic objective is to have a clear competitive
advantage over its competitors to provide the full
range of banking services via multiple delivery
channels through state-of-the-art-technology at the
lowest cost.
Brand positioning
Throughout its operation for last 14 years, DBBL has
established itself as a different bank from others. It
has differentiated itself as a leader in technology by
reaching the latest banking services to its customers
through largest ATM network in the country at free or
affordable cost. DBBL has created an unprecedented
example by providing this unique service at
subsidized cost not only to its own customers but also
to customers of many other banks. It has also
established itself as a bank that cares for the society.
All the business activities of DBBL are done in full
conformity with social, ethical and environmental
standards. DBBL is the pioneer in CSR programs in
the country. It has been intensifying its resources and
efforts on a continuous basis to reach the distressed
& needy people of the society to bring smile on their
face and to improve their quality of life.
Customer focus and customers' right
DBBL's performance can not be judged by just
looking at profit figures. DBBL considers that it is the
customers' right to get modern, online and full ranges
of banking services at an affordable price at anytime
and anywhere. DBBL's service cost is the lowest in
the industry and in many cases services provided
through ATM are free. DBBL is committed to put the
customers’ interest first. In line with its central vision,
DBBL is promise-bound to extend personalized
services to the full satisfaction of the customers that

should be the best in the industry.
Capital management plan and capital
adequacy ratio
During 2009, Shareholders' equity (Tier-1 capital)
increased to Taka 4,048.9 million being 7.95% of risk
weighted assets (RWA) and supplementary capital
(Tier 2 capital) increased to Taka 1,850.9 million
being 3.64% of RWA. Tier-2 capital was also
strengthened by revaluation of held to maturity
securities and held for trading securities as of
December 31, 2009. It will strengthen the capital
base of the company and provide long-term growth
and stability to the Bank. It may be noted that as per
Bangladesh Bank regulation, subordinated loan is
eligible as Tier-2 capital up to 30% of Tier-1 capital
and 50% of assets revaluation reserve and 50% of
revaluation reserve on held for trading and held to
maturity securities are eligible as Tier-2 capital. In
line with long-term capital management plan of the
Bank and keeping in view the implementation of
Basel II requirement, strong capital adequacy ratio
was maintained in 2009 which reached 11.59% under
Basel I at the end of the year that was well above
statutory requirement of 10.00%.
Expansion of branches
The Bank opened 15 new branches in 2009 to reach
79 branches at the end of the year spreading the
branch network throughout the country. Five new
SME Service Centres were opened in 2009 to reach
10 SME Service Centres at the end of 2009. More
branches will be opened in 2010 to expand the
branch and distribution network. These will bring upto-date
banking services to our existing and potential
customers. At the same time it will optimize utilization
of our strong delivery channels, increase our resource
position and business potentials that will maximize
profitability and shareholders' value. DBBL's strategy
is to reach the doorsteps of customers to provide full
range of banking services based on state- of -the-
art- technology and IT platform at free or affordable
cost.
IT infrastructure
Dutch-Bangla Bank is the first and only bank in
Bangladesh which invested more than Taka 2.0 billion
in developing the largest ICT infrastructure in the
banking sector of the country. Since its inception, the
Bank has been continuously striving towards bringing
world-class technology driven banking services,
conveniences and satisfaction to its customers setting
a milestone in the banking sector of the country.
As a technology driven Bank, we have implemented
world reputed online banking software-Flexcube at all
its 79 branches and 10 SME service centers with
following delivery channels:
● Any Branch Banking
● Online ATM/POS service
● Internet Banking service
● Mobile Banking service
● SMS and Alert banking service
The Bank has also implemented Online Synchronous
Disaster Recovery Site (DRS) to provide
uninterrupted and reliable banking convenience to

the customers. DBBL’s Synchronous DRS is the first
of its kind in Bangladesh.
Dutch-Bangla Bank’s ATM is the largest ATM network
in the country comprising of 700 units of ATMs at the
end of 2009. DBBL has 1100 units of POS terminals
at various merchant outlets. All the ATMs and POS
terminals are made EMV (Europay, MasterCard and
VISA) compliant which is again the first time in
Bangladesh to ensure the security of our valued
customers. The ATM / POS network of the DBBL
accepts the following cards:
● EMV compliant chip cards of all the banks in
the world;
● Non-EMV Visa & MasterCard cards of all the
banks in the world;
● Proprietary cards for all the partner Banks in
Bangladesh.
DBBL has opted other banks to joining and enjoying
its ATM/POS network. Customers of 18 (eighteen)
partner banks in Bangladesh are enjoying the DBBL
ATM/POS network.
DBBL pioneered EMV supported Chip Visa credit cards
in Bangladesh. This highly secured credit card
protects the cardholder from any type of fraud at
home and abroad.
A card with magnetic strip can easily be skimmed by
the fraudsters. But DBBL Chip cards feature built-in
encryption algorithms mandated by Visa and
MasterCard Int’l which are impossible to duplicate or
modify.
At present, DBBL is issuing Classic and Gold Visa EMV
credit cards for local and international usages. We
have multicurrency card supporting both USD and
BDT. Besides EMV, the main features of our credit
cards are competitive Interest Rate, 100% Cash
Withdrawal facility from ATM booths, nil Cash
Advance Fee in case of withdrawing cash from DBBL
ATMs, maximum 50 days’ interest free period in case
of purchase, etc.
We have also achieved the milestone of issuing Debit
Cards in Bangladesh. Up to December 2009, we
issued over 755,000 DBBL debit cards to our
customers.
To provide baking services to the remote customers
of the country, DBBL has planned to use the
country’s Mobile network. With the help of the mobile
network, all unbanked customers having cell numbers
will be able to get some basic banking services like
cash withdrawal, cash deposit, bill payment, local
remittance etc. from all over the counrty. The
customers will also get foreign remittance from all
over the world. Even all Government payments,
corporate salary payment can be disbursed through
this service. DBBL is in the process of obtaining
necessary permissions from regulatory bodies.
The Bank has undertaken a massive plan to relocate
its present Data Center (occupying all kinds of IT
infrastructure), from where all kinds of Bank’s IT
related services , facilities are being controlled and
monitored, to a new destination of the Bank’s own
premises from the present rented building. This
initiative will help the Bank to provide the customer
services in a better and effective way as well as to
enhance the safety & security of the Bank’s everincreasing
IT infrastructure.

Retail Banking and lending under SME
Scheme
In order to achieve further growth and to serve the
clients better, DBBL is emphasizing on the importance
of identifying clients’ needs, better & smooth service
delivery process, customized banking services and
operation in accordance to the clients’ need.
In view of the potentials, DBBL launched Retail
Loan/Consumer Loan in 2007. DBBL is now trying to
focus on expansion of Retail Loans/Consumer Credit
besides Corporate Credit. The management of the
Bank is giving utmost emphasis to expand Retail
Banking portfolio.
DBBL Life line loans under retail scheme covers the
following:
● lHealth Line
● Education Line
● Professionals Line
● lMarriage Line
● Travel Line
● Festival Line
● Dreams Come True Line
● Care Line
● General Line
● Auto Line
● Home Line
● Fully Secured Lines
As of 31 December, 2009 DBBL’s number of Retail
Loan customers stood at 5,032 and aggregate
disbursement stood at Taka 1,618.2 million against
which outstanding balance stood at Taka 1,402.2
million with a growth of 125.2% over 2008.
To achieve long-term sustainable growth following
are the strategies of DBBL in Retail Banking arena:
● Providing better service through
expansionary distribution channels
● Meticulous customer segmentation
● Customer-centric product and service
innovation
● High impact staff-customer engagement and
total customer relationship management
● Proactive risk management
● Competitive pricing
● To focus on salaried person to minimize the
risk
SME lending scheme was launched in 2008 as a
priority sector with a separate division. It was further
strengthened in 2009.Expansion of retail banking
operation and SME lending will be strongly supported
by adequate manpower, robust IT and ATM network,
various promotional activities as well as faster and
better customer services.
Human resources development
A competent, committed and fully motivated team of
human resources is the main driving force for
performing at the highest level in a fiercely
competitive financial market like Bangladesh.
Accordingly, the Bank's strategy is to attract, retain
and motivate the most talented people. The Bank's
HR policies are based on trust and relationship. The
Bank's policy is to look after people who want to
make a long-term career with the Bank because trust
and relationship are built over time. Remuneration
package may be an important factor to motivate for
joining a company, but it is not the only one. In case
of DBBL, it is excellence of DBBL with good values,
fairness, potential for success, scope to develop a
broad interesting career etc. which attract people to
join and work with DBBL.
DBBL always encourages excellence in performance
by rewards and recognition. In addition, a number of
well thought out policies are in place for welfare of
employees in the form of DBBL Superannuation Fund,
DBBL Gratuity Fund, House Building Loan Scheme
and Car Loan Scheme etc. In order to ensure better
healthcare of employees there is a medical
consultant at Head Office. In addition, a thorough
medical check up facility is provided to each
employee on a yearly basis. On the other hand, DBBL
attaches utmost importance to the development of its
employees through continuous training. We imparted
training to 528 officers in 68 different courses during
2009. The training programs were organized by our
own training institute. We also nominated 71 officers
to undergo different training programs/courses
organized by different organizations like Bangladesh
Institute of Bank Management BIBM), Bangladesh
Bank Training Academy (BBTA) and other similar
organizations. In addition, eight executives were sent
abroad for attending overseas training and workshop.

The number of DBBL staff increased by 556 in 2009.
At the end of 2009, number of staff stood at 1,785
compared to 1,229 at the end of 2008. The corporate
culture at DBBL as grew over last 14 years is such
that the members of the staff have ample
opportunities to take initiative and responsibilities.
The challenge is to maintain a business like,
committed corporate culture that matches DBBL's
mission. Achieving results and taking responsibility
are important components of the culture we pursue,
one in which management and staff work together
and are mutually accountable.
In addition, to strive hard for winning the challenges
in a fiercely competitive market, the management has
been constantly pursuing the following areas:
● To attract and retain best professionals in the
industry.
● Job evaluation, job enrichment, performance
target, performance evaluation, and
performance based compensation and
incentives.
● Evaluating the training need of individual
employees including training need for
introducing new products, services and
technology.
● Arranging high quality training at home and
abroad so that DBBL executives can have
competitive advantage in the market.
● Encouraging its employees to develop and
broaden existing knowledge and skills and to
acquire new skills and expertise.
● Reviewing and updating organizational
structure on a regular basis to have a
structure which can give strong support to
the strategic objectives of the Bank.
Correspondent banking relationship
At present, DBBL has 442 correspondent banking
relationships covering 92 countries. As a result, we
can route Letters of Credit (L/C) to all important
business centers of the world. We are maintaining
adequate number of nostro accounts in major
currencies with the key players in the world market to
facilitate export and import transaction needs of our
valued clients. DBBL's excellent service with
competitive charges provides a good correspondent
banking solution for the valued clients of DBBL.
DBBL has established Taka Drawing Arrangements
with various exchange houses located in USA, UAE,
Kuwait, Canada etc. Moreover, arrangements of DBBL
with Western Union, USA and Xpress Money of UAE
Exchange Center, UAE enable people to get direct
inward remittances from every corners of the globe.
Remittance inflow of DBBL rose significantly by 29.3
per cent from US $ 75.7 million in 2008 to US $ 97.9
million in 2009.

REVIEW OF FINANCIAL POSITION AND
RESULTS
Summary
Healthy Business and profit growth despite
global financial crises and slower business
activities
Despite global economic crises and slower business
activities in the country, DBBL registered healthy
business and profit growth in 2009 while being
cautious to protect against any risk that may be
arising from the economic crises. The deposit of the
Bank increased by 31.4% from Taka 51,575.7 million
in 2008 to Taka 67,788.5 million in 2009, loans &
advances increased by 16.1% from Taka 41,698.3
million in 2008 to Taka 48,410.9 million in 2009,
while import business increased by 20.7% and export
business increased by 2.7%. Operating profit grew by
39.3% from Taka 1,935.9 million to Taka 2,695.7
million and net profit after tax increased from Taka
821.7 million to Taka 1,137.7 million showing a
growth of 38.5%. Lower cost of fund resulting from
improved deposit mix, higher net interest income,
higher non-interest income mainly from gain on sale
of HFT securities, capital gain from listed shares and
service charges on deposits accounts contributed to
notable growth in operating profit.Net profit after tax
grew at a faster rate than operating profit for lower
effective tax rate in 2009. Return on equity was
30.3% in 2009 compared to 29.9% in 2008.
Higher investments in branch expansion, IT platform,
ATM network, card services and human resources
though contained profit growth in 2009, however,
these will increase resource capacity, increase
distribution network, improve efficiency in operations,
augment resource flow to expand customer base and
to provide much better and faster customer services.
As a result, in the long term it will bring substantial
and sustainable benefits for the Bank.
Net interest income
During the year 2009, the net interest income of the
Bank rose by Taka 249.2 million or 13.7% to Taka
2,066.8 million from Taka 1,817.7 million of the
previous year. Net interest income increased mainly
due to higher average loan portfolio and lower cost of
fund resulting from improved depoist mix. Cost of
fund declined from 7.66% of 2008 to 6.53% in 009
while yield on loans and advances declined from
13.62% in 2008 to 12.96% in 2009 mainly due to
reduction in interst rate for regulatory compliance.
However, the share of net interest income to the total
income of the Bank decreased to 42.9% in 2009
compared to 49.9% of the previous year.
Investment Income
During the year 2009 the investment income of the
Bank rose by Taka 712.4 million or 114.6% to Taka
1,334.2 million from Taka 621.7 million of the
previous year. Investment income increased mainly
due to Taka 347.5 million earned from gain on sale of
HFT securities and Taka 112.6 million earned from
capital gain on sale of listed shares.
Non- interest income
The non-interest income consists of the commission,

exchange and other operating income of the Bank.
Total non- interest income of DBBL increased by Taka
217.4 million or 18.1% in 2009 over the previous
year. Commission and exchange income increased by
Taka 8.4 million or 1.0% during the year 2009.
Notable growth was achieved in other operating
income which grew by Taka 209.1 million to Taka
557.1 million in 2009 from Taka 348.0 million in
2008 marking a rise by 60.1%. Other operating
income increased due to growing services provided
by online banking network of the Bank.
Total operating expenses
Total operating expenses of the Bank during the year
grew by Taka 610.5 million or 40.4%. Higher
operating espenses were necesary to support the
overall business and profit growth of the Bank during
the year 2009. Higher expenses were required to
support capacity building and expansion of
Provision for taxation
distribituion network and delevery channels. 15 new
branches and 5 SME service centers were opened in
2009. 350 ATM units were installed in 2009.
Recruitment of new personnel, maintenance and
upgradation of IT network, Introduction of new retail
products, increasing CSR activities are attributable to
higher opearting expenses.
The Bank's cost (excluding the charges for loan
losses) to income ratio increased to 44.1% in 2009
from 41.6% of the previous year.
Provision for loans and off-balance sheet
exposures
Total provision for loans and off-balance sheet
exposures increased by Taka 362.0 million or 557.7%
during the year 2009. The specific provisions against
loans substantailly increased by Taka 327.9 million
during the year. However, close monitoring and
supervision of the good and particularly nonperforming
loans continued to maintain overall quality
of loan portfolio. The general provisions for
unclassified loans and off-balance sheet exposures
increased by Taka 34.2 million to Taka 150.2
million from Taka 116.1 million of the preceding year
due to higher out standing balance of loans and offbalance
sheet exposures.
Contribution to Dutch-Bangla Bank
Foundation
DBBL established the Dutch-Bangla Bank Foundation
in 2001 for carrying out CSR programs aimed at
social causes and distressed people in the society.It is
the Bank's policy to contributre 5% of its pre-tax
profit to Dutch-Bangla Bank Foundation which
increased to Taka 113.4 million in 2009 compared to
Taka 93.5 million in the previous year.
Profit before taxes
During the year 2009, profit before taxes of the Bank
increased by Taka 378.3 million or 21.3% to Taka
2,154.4 million from the previous year's amount of
Taka 1,776.1 million. This increase was mainly
attributed to higher opearting profit comprising both
net-interest income and non-interest income.
As per Income Tax Ordinance, 1984, an amount of Taka 1,141.7 million has been charged as provision for

current tax commensurate with the Bank's profit compared to Taka 913.7 million of 2008. However, Taka 125.0
million has been credited as deferred tax income as compared to Taka 40.7 million as deferred tax expense for
the year 2008. The effective tax rate decreased to 47.2 % from 53.7% in 2008 against nominal rate of 42.5%.
Effective tax rate decreased mainly because of lower tax rate and tax free capital gain income from sale of listed
shares.
Net profit after taxation
Net profit after taxation grew by Taka 316.0 million to Taka 1,137.7 million from Taka 821.7 million of the
preceding year marking a growth of 38.5%. The growth in after tax profit contributed to higher Tier-1 capital
and total capital adequacy ratio.
REVIEW OF BALANCE SHEET
Total Liabilities
The Bank's liabilities (except shareholders'equity) as at 31 December 2009 increased to Taka 77,128.7 million
compared to Taka 57,455.4 million at the end of 2008 showing a growth of 34.2%.
The liability mainly included deposits which decreased to 87.9.% of the total liabilities from 89.8% in 2008.
Deposits
The deposit grew by Taka 16,212.9 million (31.4%) in 2009 from Taka 51,575.7 million to Taka 67,788.6
million. The growth was supported by expansion of branch network, opening of new ATM units & SME service
centers at different business hubs of the country. Deposit mix improved substantially. Online banking with
expanded ATM network and tailor made customer services helped increase confidence of customers in DBBL. As
a result, number of savings and current accounts as well as amount of deposits increased substantially. Share of
cost free or low cost deposits increased to 63.6% of total deposits in 2009 (50.7% in 2008). Because of
improved deposit mix, weighted average cost of fund declined to 6.53% in 2009 from 7.66 % in 2008.
The savings deposits of the Bank increased by Taka 10,132.4 million to Taka 22,344.4 million from Taka
12,212.0 million of the preceding year showing a significant growth of 83.0%. The share of high cost fixed
depoists came down to 36.4% of total deposits in 2009 from 49.3% though absolute amount of fixed deposit
decreased by Taka 739.2 million (-2.9%).

Borrowing from other banks, financial
institutions and agents
Borrowing from other banks, financial institutions and
agents including overnight borrowing stood at Taka
2,511.5 million at the end of 2009 compared to Taka
593.6 million at the end of 2008.
The Bank's borrowing includes borrowing against
refinance from Bangladesh Bank for financing under
SME scheme and financing under housing scheme.
Besides, the Bank has been availing credit line
facilities from the Rupantarita Prakritik Gas Company
Limited (RPGCL) for financing CNG buses / chassis
under Dhaka Clean Fuel project and credit lines form
FMO, The Netherlands.

In order to support some of the preferred sectors of the economy, DBBL has extended soft term credit facilities
financed by some International Financial Institutions as follows:
Under a foreign currency loan for US$ 8.75 million from Netherlands Development Finance Company (FMO)
DBBL is providing credit lines to export oriented RMG units at an interest of 11.85 percent p.a. for procurement
of capital machinery.
To develop small-scale entrepreneur, a long-term local currency loan equivalent to EURO 5.0 million was also
arranged from Netherlands Development Finance Company (FMO) to finance small-scale enterprises engaged in
manufacturing, agriculture, transport, tourism and productive trade & commerce and service industries. The
loan amount was increased to EURO 7.5 million to include residential housing finance only for fixed income
group.
Subordinated debt
With 2nd & final tranch of Subordinated loan-3 for Taka 155.0 million obtained in 2009, total amount of
subordinated loan increased to Taka 1,514.7 million at the end of 2009. Subordinated loans have been arranged

from FMO for financing housing sector of the country and to strengthen Tier-2 capital of the Bank. Subordinated
loan is eligible as Tier -2 capital of the Bank subject to regulatory limit.
Shareholders' equity
As at 31 December 2009, DBBL's shareholders' equity increased to Taka 4,351.8 million from Taka 3,163.5
million of 2008 registering an increase by Taka 1,188.2 million (37.6%). The increase resulted from Taka
1,137.7 million after tax profit and Taka 50.6 million reserve against HTM securities. After issuing bonus shares
@ 1:0.5, Paid up share capital of the Bank increased by Taka 500.0 million and stood at Taka 1,500.0 million at
the end of 2009. The statutory reserve increased to Taka 2,000.0 million at the end of 2009 from Taka 1,197.5
million of 2008. The paid-up share capital and statutory reserve together stood at Taka 3,500.0 million as at
December 31, 2009. As per Bangladesh Bank regulation, Paid up share capital and statutory reserve should be
increased to at least Taka 4,000.0 million latest by August 11, 2011 of which paid up share capital should be
minimum Taka 2,000.0 million. DBBL is well positioned to meet the requirment much earlier before the
deadline.
Capital management plan and capital adequacy ratio
Strong Capital Adequacy ratio was maintained in 2009 which reached 11.59% under Basel-I at the end of the
year that was well above statutory requirement of 10.00%. Tier-1 capital increased to Taka 4,048.9 million
being 7.95% of risk-weighted assets (RWA) and supplementary capital (Tier 2 capital) increased to Taka 1,850.9
million being 3.64% of RWA.
The details of risk-weighted assets, requirement of capital, actual capital and capital adequacy
ratio are given below:
Risk Weighted Assets
Total assets
Total assets of DBBL as at 31 December 2009 stood at Taka 81,480.5 million compared to Taka 60,618.9 million
of 2008 depicting a growth by Taka 20,861.6 million or 34.4%. Loans and advances is the largest component of
assets followed by investments.

Cash in hand and balances with Bangladesh Bank and its agent bank (s) (including foreign
currencies)
As at 31 December 2009, cash in hand and balances with Bangladesh Bank and its agent banks (including
foreign currencies) stood at Taka 6,653.9 million as against Taka 5,126.7 million of 2008 registering a growth by
Taka 1,527.2 million or 29.8%. The increased cash was required to provide uninterrupted cash services to our
growing customers. Online transaction facilities with 79 branches, 600 units of ATM and growing number of
accounts substantially increased cash requirement in branches and ATMs. Growth in deposits, increased
balance with Bangladesh Bank to maintain CRR Ratio.
Balance with other banks and financial institutions
The Treasury Division of the Bank has to maintain some short term deposit (STD) accounts and current deposit
(CD) accounts with other banks in and outside the country for the 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 Bank. As at 31 December 2009, balance outstanding with other banks and financial
institutions substantially increased to Taka 10,213.8 million from Taka 1,901.5 million at the end of 2008 for
lower utilisation of funds in loan portfolio.
Money at call & short notice
Money at call and short notice stood at Taka 820.0 million at the end of 2009 compared to Taka 2,500.0 million
at the end of 2008. The average yield on fund placement at call & short notice of the Bank was 8.06% for 2009
as aganist 8.45% of 2008. Short term excess fund is placed in money market to augment return on fund.
Investments
The Bank's investment stood at Taka 9,685.9 million at the end of 2009 that was higher by 82.0% from Taka
5,322.3 million in 2008. The investments mainly included Government securities for Taka 9,669.9 million (99.8%
of total investment) maintained mainly to cover SLR requirement. In addition, investments were planned in a
way to provide sufficient iquidity and flexibility in treasury operations and to boost aggregate yield which
increased from 9.7% in 2008 to 14.6% in 2009.
Treasury team of the Bank was very much watchful to manage market risk & uncertainty and ensure maximum
return from investments in security, term deposits and call money market though there was higher level slower
business activities. During the year under review, the Bank was able to maintain cash reserve requirements
(CRR) and statutory liquidity requirements (SLR) successfully.
Loans and Advances
Loans and advances stood at Taka 48,410.9 million at the end of 2009, a growth of 16.1% over Taka 41,698.3
million in 2008. The Bank continued to consolidate and diversify its portfolio in 2009 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 group were
launched in 2009 to augment fee income and improve yield and spread on total loan portfolio. At the end of
2009, DBBL's total outstanding retail portfolio stood at Taka 1,402.2 million compared to Taka 622.5 million of
2008.
Weighted average rate of return on total loans & advances decreased to 12.96% in 2009 from 13.62% in
2008.
Classified loan as a percentage of portfolio significantly decreased to 2.46% in 2009 from 3.27 % in 2008.

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 merit of the cases.
REVIEW OF OFF-BALANCE SHEET ITEMS AS AT 31 DECEMBER 2009
Total outstanding amount of off-balance sheet exposures of the Bank stood at Taka 26,262.8 million at the end
of 2009 from Taka 23,253.6 million of 2008 registering a growth of 12.9%.
The letters of credit stood at Taka 15,816.4 million at the end of 2009 from Taka 7,171.0 million of 2008
registering a growth of 120.6%.
The letters of guarantee increased to Taka 3,025.1 million from Taka 2,386.5 million of 2008 showing a growth
of 26.8%.
Import - Export business and remittance
During the year under review, import business of DBBL recorded growth of 20.7% (23.4% in 2008) while export
trade grew by 2.7% (6.5% in 2008).
Outlook for 2010
In the business plan and budget for 2010, deposits are projected to grow by 44.9% to Taka 100,000.0 million
and loans are projected to increase by 38.3% to Taka 65,000.0 million. Import and export businesses are
expected to rise by 70.0% to Taka 86,700.0 million and 70.0% to Taka 69,700.0 million respectively. With

higher interest margin resulting from substantially improved deposit mix, lower cost of fund and better quality of
assets as well as growing non-funded business, healthy growth in operating profit and after tax profit is
expected in 2010.
The above growth will be supported by introduction of merchant banking and offshore banking activities,
expansion of branches & ATM network and up gradation of IT and online banking system to provide better and
faster customer services. Human resources will be strengthened to improve operational efficiency and
productivity. A number of new products and services particularly in SME and retail segments will be introduced
to provide wider choice to the customers.
Dividend policy and utilization of retained profit
The Bank has been pursuing a dividend policy that must ensure satisfactory return for shareholders as well as
sustainable growth of the Bank with strong capital adequacy ratio to protect greater interest of depositors and
shareholders.
Election of the Directors
In terms of Article 113 of the Articles of Association of the Company, at every Ordinary General Meeting, onethird
of the Directors for the time being or if their number is not three or multiple of three, then the number
nearest to one-third shall retire from the office. Accordingly, as per Article 114, Mr. Abedur Rashid Khan, Mr.
Zaheed Hossain Khan and Mr. Bernhard Frey will retire from the Sponsoring Shareholders' Group. Mr. Abedur
Rashid Khan and Mr. Zaheed Hossain Khan are eligible for re-election. However, as per Bangladesh Bank
regulation, Mr. Bernhard Frey is not eligible for re-election, as he has completed consecutive six years as
director of the Bank.

Meetings of the Directors
Eleven (11) meetings of the Board of Directors and
fifty one (51) meetings of the Executive Committee of
the Board were held during the year under review.
The Audit Committee of the Board also held seven
(07) meetings during the year under review.
Appointment of Auditors
Our existing Auditors, M/s. Hoda Vasi Chowdhury &
Co., Chartered Accountants (Independent
Correspondent Firm to Deloitte Touche Tohmatsu) has
completed audit of 2009 as third year of their audit
and as per Bangladesh Bank's BRPD Circular Letter
No.12 dated July 11, 2001, they are not eligible for re-
appointment. Therefore, another auditor will be
appointed and their remuneration will be fixed for the
year 2010 by the honorable shareholders in the 14th
annual general meeting.
Gratitude
The members of the Board of Directors of DBBL would
like to express their gratitude to all shareholders,
valued clients, patrons, all employees and well-wishers
for their continued support and cooperation, without
which the Bank would not be able to achieve its
present amazing position. We are also indebted to the
Government of Bangladesh, Bangladesh Bank,
Securities and Exchange Commission, Office of the
Registrar of Joint Stock Companies and Firms, the
Stock Exchanges for their continued support and cooperation.
We look forward for your continuous support and best
wishes for meeting the challenges that await us in
days to come.
With best regards
On behalf of the Board of the Directors
Abedur rashid Khan
Chairman