Presence in SME sector to be strengthened

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FE Report
Mercantile Bank Ltd says it will strengthen its presence in the area of small and medium enterprises (SMEs) and help alleviate poverty.
"Our presence in the SMEs began in June, 2006 and we will strengthen our financing in the area as part of our diversification in the banking business," AKM Shahidul Haque, additional managing director of the leading private commercial bank (PCB), told the FE Sunday.
He said the Mercantile Bank wants to give more focus on the SMEs considering its importance to the growth of the economy.
"With an efficient treasury management, the bank has excelled in boosting the flow of remittance and other banking businesses," the Haque said.
The third generation PCB, which began its operation on June 2,1999, has 35 branches, including seven in rural areas.
"By the end of this year (2007), we will open six more branches," Haque said.
The bank continued to achieve a substantial growth in the areas of business and revenue generation in the first half ended June 30,2007.
The operating profit of the bank rose to Tk 738.34 million on June 30,2007 against Tk 691.38 million of the corresponding period of the previous year.
The bank mobilised Tk 34.62 billion as deposit as of June 30,2007 against Tk 30.08 billion on June 30,2006.
The total loans and advances stood at Tk 27.12 billion during the period as against Tk 26.22 billion on June 30,2006.
The remittance earned through the bank stood at Tk 1.16 billion till the end of June this year against Tk 1.28 billion of June 30,2006.
The capital adequacy ratio of the bank stood at 11.25 per cent against 10.04 per cent on June 30, 2006.
In calendar 2006, the bank earned Tk 494.22 million as net profit against Tk 386.83 million in 2005.
The bank's paid-up capital rose to Tk 1.19 billion in 2006 against Tk 999.27 million in 2005. The paid-up capital was Tk only 245 million in 2000.
The bank's investment whopped to Tk 5.40 billion against Tk 3.51 billion in 2005.
In response to the growing need for corporate social responsibility (CSR) in the country, the bank has been recognising the contributions of talented persons in different areas, including economic research, since 2002.
'The Mercantile Bank Award' is given in the areas of research on economic issues, trade and commerce, science and healthcare, journalism, sports, education and culture, liberation war and Bengali literature.
The bank has launched a number of financial products and services.
Among them, monthly savings scheme, family maintenance deposit, double benefit deposit scheme, special saving scheme, pension and family support deposit, consumer credit scheme, small loan scheme and lease finance scheme have already attained wide acceptance among the general people.
"In its pursuit of business growth, the bank will invariably adhere to good corporate governance practices, sound risk management policies, prudent credit policies and practices in order to support profitability of the bank," the Mercantile Bank top executive said.
He said on the back of a strong performance in 2006, the bank confidently looks forward to continue sharing its success in delivering the shareholders' value.
The share of the bank closed at Tk 364.75 on Dhaka Stock Exchange Monday against the face value of Tk 100.