City Bank strives to innovate new products
Sunday, 5 October 2008
FE Report
The City Bank Ltd, country's one of the leading first generation private commercial banks is now well positioned to meet the challenges in the coming years and will continue to strive to innovate new products for the clients.
"We will continue to strive to innovate and capture opportunity for satisfactory growth, improvement of asset quality, customer services and value creation," chairman of City Bank Ltd, Aziz Al Kaiser said in the bank's latest annual report.
The bank held the last annual general meeting September 25 and approved 15 per cent stock dividend for the shareholders for the year ended December 31,2007.
The chairman of the bank further said that the bank will continue to harness the potential of retail operations, SME financing, on-line banking channels throughout all the branches, internet banking, phone banking and NRB remittance market.
"However, there is continued pressure on interest margins, commission and fee earnings, exchange income and increased provision requirement and compliance issues and in its pursuit for growth, the bank will always adhere to good corporate governance and best practices with sound risk management policies and strict credit evaluation procedure," the bank chairman said.
According to the annual report, the year 2007 witnessed major initiatives in re-launching SME banking.
The Bank's SME asset size in 2007 surged to Tk 4.93 billion with 2,825 borrowers.
City Bank launched a trio of SME loan products July 17 last under the umbrella of its latest product in the line of financing scheme 'CityBizness'.
The three new cluster-loan products; namely City Shulov, City Muldhan and City Sheba are specifically designed to serve the financing needs of three different types of small and medium enterprises.
City Shulobv' is targeted towards small and medium scale manufacturers and 'City Muldhan' is designed keeping in mind the needs of traders while 'City Sheba' is exclusive for those willing pursue business in the service sector.
By the end of this year (2008), the bank hopes to set up 13 such SME centers which will take the total number to 15.
"CityBizness with its innovative and appropriate services and deposit cum loan products will help flourish the SMEs of the country, a City Bank official said.
The annual report mentioned the Bank has also taken measures to provide complete banking solution to SMEs by devising both cash and non-cash based products appropriate and fit to support the requirements of the concerned businesses.
As per the loan portfolio allocation of the bank in 2007, commerce and trade accounted for 41.06 per cent (Tk 10.99 billion) of the total portfolio, large and medium scale industries 20.69 per cent (Tk 5.54 billion) and insurance, real estate and service 8.06 per cent (Tk 2.15 billion).
The bank's profit after tax (PAT) and provision rose to Tk 343.46 million in 2007 against Tk 240.02 million in 2006.
The bank's PAT was only Tk 13.46 million in 2003, Tk 380.26 million in 2004 and Tk 540 million in 2005.
The bank's authorized capital remained unchanged at Tk 1.75 billion while the paid-up capital increased to Tk 1.18 billion in 2007 from Tk 1.08 billion of 2006 due to issuance of 10 per cent bonus share.
According to the shareholding structure, 86.24 per cent shares of the bank, a listed company on the stock exchanges are owned by the sponsors and general public while the rest 13.76 per cent are financial institutions.
The Bank started commercial operation on March 14,1983.
The City Bank Ltd, country's one of the leading first generation private commercial banks is now well positioned to meet the challenges in the coming years and will continue to strive to innovate new products for the clients.
"We will continue to strive to innovate and capture opportunity for satisfactory growth, improvement of asset quality, customer services and value creation," chairman of City Bank Ltd, Aziz Al Kaiser said in the bank's latest annual report.
The bank held the last annual general meeting September 25 and approved 15 per cent stock dividend for the shareholders for the year ended December 31,2007.
The chairman of the bank further said that the bank will continue to harness the potential of retail operations, SME financing, on-line banking channels throughout all the branches, internet banking, phone banking and NRB remittance market.
"However, there is continued pressure on interest margins, commission and fee earnings, exchange income and increased provision requirement and compliance issues and in its pursuit for growth, the bank will always adhere to good corporate governance and best practices with sound risk management policies and strict credit evaluation procedure," the bank chairman said.
According to the annual report, the year 2007 witnessed major initiatives in re-launching SME banking.
The Bank's SME asset size in 2007 surged to Tk 4.93 billion with 2,825 borrowers.
City Bank launched a trio of SME loan products July 17 last under the umbrella of its latest product in the line of financing scheme 'CityBizness'.
The three new cluster-loan products; namely City Shulov, City Muldhan and City Sheba are specifically designed to serve the financing needs of three different types of small and medium enterprises.
City Shulobv' is targeted towards small and medium scale manufacturers and 'City Muldhan' is designed keeping in mind the needs of traders while 'City Sheba' is exclusive for those willing pursue business in the service sector.
By the end of this year (2008), the bank hopes to set up 13 such SME centers which will take the total number to 15.
"CityBizness with its innovative and appropriate services and deposit cum loan products will help flourish the SMEs of the country, a City Bank official said.
The annual report mentioned the Bank has also taken measures to provide complete banking solution to SMEs by devising both cash and non-cash based products appropriate and fit to support the requirements of the concerned businesses.
As per the loan portfolio allocation of the bank in 2007, commerce and trade accounted for 41.06 per cent (Tk 10.99 billion) of the total portfolio, large and medium scale industries 20.69 per cent (Tk 5.54 billion) and insurance, real estate and service 8.06 per cent (Tk 2.15 billion).
The bank's profit after tax (PAT) and provision rose to Tk 343.46 million in 2007 against Tk 240.02 million in 2006.
The bank's PAT was only Tk 13.46 million in 2003, Tk 380.26 million in 2004 and Tk 540 million in 2005.
The bank's authorized capital remained unchanged at Tk 1.75 billion while the paid-up capital increased to Tk 1.18 billion in 2007 from Tk 1.08 billion of 2006 due to issuance of 10 per cent bonus share.
According to the shareholding structure, 86.24 per cent shares of the bank, a listed company on the stock exchanges are owned by the sponsors and general public while the rest 13.76 per cent are financial institutions.
The Bank started commercial operation on March 14,1983.