The Dhaka Mercantile Co-operative Bank Limited (DMCB) has already emerged as a first growing and successful co-operative bank in Bangladesh with maintaining an upward trend of all operational activities including deposit mobilisation, investment, earnings and profitability.
The DMCB is now working to improve the socio-economic condition of its members through collateral free investment facilities on easy condition by using co-operative system for creating employment opportunities as well as poverty alleviation.
The DMCB has also able to keep higher trajectory growth path retaining its lead position on the co-operative sector of Bangladesh. In the fiscal year (FY) 2017-18 recorded phenomenal growth in key parameters that measure the performance of a co-operative entity.
The total asset of the DMCB in the FY 2017-18 reached at BDT 19.22 billion; deposit BDT 17.70 billion and investment BDT 15.65 billion of which micro investment was worth BDT 11.89 billion; profit before provision and tax BDT 168.5 million and net profit for the FY BDT 101.9 million with earning per share BDT 387.00.
In the FY 2017-18, the total deposit jumped by BDT 3.93 billion to BDT BDT 17.70 billion. It was 28.50 percent growth over the FY 2016-17.
The DMCB has a range of products for deposit mobilisation which includes term deposit schemes with different maturity options; monthly/quarterly/half-yearly/yearly; double money options; daily, weekly and monthly shanchay schemes.
The DMCB is containing to grow and rationally diversify its investment portfolios across the sector, and geographical location to achieve its ultimate objectives through minimising risk.
On the other hand, the DMCB is extending its investment facilities in all sectors covering commercial investment requirements to the businessmen members.
Besides, other facilities like marriage, education, seasonal, supervisory investment to the shopkeeper, rickshaw puller, farmers, weavers' in the agricultural sector etc. to be extended for development of the country.
Success of any financial institution depends on the proper use of fund that it receives and disburses. Taking this principle as the guiding philosophy, the DMCB extends small investments to help developing entrepreneurship across the country.
2As these investments are provided without securities it appraises any investment proposal very cautiously taking the member into consideration. The DMCB recovers investment in a number of instalments with profit generally within twelve months.
Many skilled workers and small traders are not able to procure investments from the country's scheduled banks for paucity of securities, generally known as collaterals. Considering the necessity of investment, the DMCB is extending investments to the marginal people by including them as members without taking securities to help them to be self sufficient.
Members of the DMCB are not required to waste extra time for having investments. They are also not required to come to office to repay their investments. Rather the employees of the DMCB collect instalments from their door step on daily, weekly and monthly basis.
Besides, the DMCB has already able to attract retail shopkeeper members with offering some new products like Mudaraba Special Monthly Scheme and Senior Monthly Scheme with special return on such deposit products.
Since inception, the DMCB maintained its strong position in all co-operative parameters through compliance of the existing Co-operative Societies Rules, Acts and directives, given by the concerned regulatory authorities, and standard corporate governance practices.
The DMCB started its journey after the Liberation War in 1973 aiming to improve the socio-economic condition of the members of the society through the extension of security-free investments for their small and medium entrepreneur members.
The DMCB is a co-operative society registered with the Registrar of Co-operative Societies under Bengal Co-operative Society Act XXI of 1940 bearing registration No. 44 of 1973.
The DMCB is designed to work for its members who are the owners of it and who are the beneficiaries of its grand success. It is audited annually by a high powered audit team formed by the Co-operative Department of the Government of Bangladesh. The audit team conducted audits all branches and submitted report to the Department.
The DMCB is the largest co-operative bank in the co-operative Sector in Bangladesh under the direct supervision of the Co-operative Department, Government of the People's Republic of Bangladesh.
Now the DMCB has been able to expand network across the country with enhancing its branches and sub-branches.
Around 3,000 people have already been employed in the DMCB to offer innovative products in line with its member's requirements. For that reasons, the DMCB has emerged as a renowned organisation in the field of co-operative societies.
The DMCB is working to provide better services to the lower income group for ensuring access to formal financial system along with on-time availability of their inward remittance at their doorstep through expansion of its branch network at rural areas of Bangladesh.
The DMCB continues to make its working environment to be supportive, team-based and healthy, thus enabling the employees to perform at their highest levels.
Besides, the DMCB continued to pursue and support for up-gradation of the existing branches using latest technologies for ensuring excellent working atmosphere and comfortable business places for both the field level work force and the valued members.
Information and Communications Technology (ICT) have already emerged as an essential department for any financial institutions aiming to provide better services efficiently.
The DMCB has already adopted a comprehensive ICT Policy to provide products and services to its valued members with easier and cost-effective approach.
The ICT division of DMCB has already taken an exhaustive basic and intermediate level of training to improve its employees' IT knowledge and efficiencies.
The DMCB is working to help building a poverty-free Bangladesh, which reflects the national dream, is on course for the next generation in the new Millennium, and by being pro-active in fulfilling social responsibilities.
The DMCB is going to introduce various new investment schemes like education, marriage, home, agriculture and women entrepreneurs aiming to being more unbanked people into the formal financial network.
The DMCB is also committed to ensure welfare for its members, employees and communities through focusing corporate social responsibility (CSR) approach.
The DMCB is providing supports a number of charities in the community where the employees, stakeholders and members live and works. It is also increasing depth and diversity of CSR activities each year aiming to help more people across the country.
On the other hand, the Board of Directors consider that in preparing the financial statements, the DMCB has used appropriate accounting policies, consistently applied and supported by reasonable and prudent judgments and estimates and all international accounting standards as adopted by the Institute of Chartered Accountants of Bangladesh (ICAB).
A sound internal control system has always been one of the most important matters for any organisation. The better internal control system helps the organisation to perform efficiently.
The management of DMCB recognises the importance of a sound internal control system with a view to ensuring good corporate governance practice thereby safeguard the shareholders' investments and the DMCB's assets.
The system of internal control that we have in place enables us to drive our business operations in a more efficient and effective manner with ensuring sound financial reporting and control procedures, as well as compliance with the relevant co-operative laws and regulations.
The highest policy making body acknowledges its responsibilities for the DMCB's system of internal control and for reviewing its adequacy and effectiveness.
The system of internal control covers different issues include inter alia, financial, operational, management information systems, organisational and compliance controls. All internal control systems, no matter how well designed, have inherent limitations, including the possibility of human error and the circumvention or overriding of controls.
Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to the reliability of financial reporting and financial statement preparation and presentation.
As part of business philosophy, the DMCB is to keep moving and developing with the changing era. What sets the DMCB apart from other co-operative banks/societies is its operational accuracy which it has mastered gradually over the years.
Through the development of key human resources, product diversification and excellent service to its members, the DMCB is working to sustain its leadership in the co-operative sector of Bangladesh.
The DMCB is also continuing its holistic efforts in accelerating its contribution towards improvement the socio-economic condition of the members of the organisation and economic development of Bangladesh.
The DMCB will able to take its performances at a new height in the coming years with its honesty, sincerity and efficiency.
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The author is a retired Group Captain of Bangladesh Air Force and Chairman of DMCB.
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