Letter of Transmittal

May 25, 2021

All Shareholders of AB Bank Limited

Bangladesh Bank
Bangladesh Securities and Exchange Commission
Registrar of Joint Stock Companies & Firms
Dhaka Stock Exchange Limited
Chittagong Stock Exchange Limited

Dear Sir,

Annual Report 2020

We are pleased to enclose the Annual Report 2020 along with the Audited Financial Statements including
consolidated and separate Balance Sheet as on December 31, 2020, Profit and Loss Account, Cash
Flow Statement, Statement of Changes in Equity for the year then ended, Liquidity Statement and a
summary of significant Accounting Policies and other explanatory notes thereto of AB Bank Limited and
its subsidiaries for your kind information and record.

Financial Statements of ‘the Bank’ comprise those of Conventional Branches, Islami Banking Branch, one
overseas Branch at Mumbai, India, and Offshore Banking Unit. While consolidated Financial Statements
comprise Financial Statements of the Bank and its four subsidiaries namely - AB Investment Limited
(ABIL), AB Securities Limited (ABSL), Cashlink Bangladesh Limited (CBL) and AB International Finance
Limited (ABIFL), Hong Kong.

Thank you.

Yours Sincerely,

Md. Jasim Uddin, ACS

Company Secretary (In-charge)

AB Bank | Annual Report 2020 | 1

 THRIVING BEYOND BORDERS
AB Bank encountered enormous challenges
due to increase in NPL which is prevalent in the
overall Banking industry. The challenges became
more acute with the progress of COVID-19
pandemic. Amid all these with a revamped Board
and Management, once again the Bank was able
to bounce back in the direction of regaining its
past glory.

We have focused on building an even

stronger partnership with our loyal customers,
shareholders and employees. Our aim was to
redefine strategies and revamping business
structures to provide banking services beyond
traditional borders. Under the new leadership AB
with its dedicated work force, is committed to
excel in all spheres of banking e.g. Corporate,
SME and Retail and march towards achieving
our goals with a vision for future sustainability
and the economic and overall development of
the country.

2| AB Bank | Annual Report 2020

AB BANK LIMITED

Introducing Bangladesh to its very first private sector bank; AB Bank Limited incorporated on December 31, 1981. Arab
Bangladesh Bank as formerly known started its effective operation from April 12, 1982 with the mission to be the best
performing bank of the country.
With an ambition to secure its place as the leading service provider, creating lasting value for its clientele, shareholders,
and employees and particularly for the community it operates in, AB Bank has formulated a golden heritage and an envious
legacy that may not be imitated by many. Achieving plenty of milestones and incorporating numerous changes over the
last 39 years, AB has always been authentic to its desire of being the technology driven innovative bank of Bangladesh. To
excel this new era of technological triumph, AB has successfully introduced internet banking, SMS banking, cutting edge
ICT, state-of-art network solution, 24/7 ATM service and many other e-products.
AB has extensively widened its services over the last 39 years in both home and abroad. The bank opened its very first
branch at Karwan Bazar on 12th April 1982 and now has a successful footprint of 105 branches including one overseas
branch in Mumbai, India. The Bank has one Off-shore Banking Unit, Custodial Wing and 254 ATMs spread across the
country. It has also extended its services through 5 subsidiary companies and a representative office at Yangon, Myanmar.

HIGHLIGHTS 2020

Deposits Loans & Advances Total Assets

2020 BDT 290,719 Million 2020 BDT 274,830 Million 2020 BDT 385,762 Million
2019 BDT 279,458 Million 2019 BDT 256,512 Million 2019 BDT 365,569 Million

CRAR AD Ratio CL Ratio EPS

2020 10.84% 2020 85.26% 2020 16.79% 2020 BDT 0.49
2019 10.12% 2019 84.28% 2019 18.28% 2019 BDT 0.21

Local Presence Manpower International Presence

103 Conventional Branch 565 Female 01 Overseas Branch, Mumbai (India)
01 Islami Banking Branch 1,637 Male 01 Foreign Subsidiary, ABIFL (Hong Kong)
52 Islami Banking Window 2,202 Total
01 Off-shore Banking Unit
04 Subsidiaries

Alternative Delivery Channel

11 SME Centre
101 Agent Banking Outlet
254 ATMs

AB Bank | Annual Report 2020 | 3

 CONTENTS

Brief about the Bank Economic Impact Report 67

Vision, Mission & Core Values 05
Strategic Priorities 06 Risk Management Report 73
Chronicles 07
Products & Services 08 Directors’ Report 78
Message from the Chairman 09
Message from the Desk of Management Discussion & Analysis 102
President & Managing Director 12
Board of Directors 14 Statement from President & Managing
Composition of the Board and Committees 15 Director and Chief Financial Officer 106
Senior Management Team 24
Financial/Business Reports
Investor Relations 108
Independent Auditors’ Report to the
Forward Looking Statement 26 Shareholders
Shareholders’ Information 27 Financial Statements 112
Shareholders’ Pattern 28
Graphical Presentation 29 Citizen Charter
Last 10 years’ performance 32 Corporate Social Responsibility 234
Financial Calendar 34 Green Banking 237
Price Trend of AB Bank Share 35
Notice 36 AB Network
37 Branch Location 239
Glimpses of 38th AGM
ATM Booth 242
Events 38 Agent Banking Outlet 248

Proxy Form 251

Corporate Governance
AB Structure 46
Governance 47
Certification on Compliance of
Corporate Governance Code 49
Dividend Distribution Policy 60
Directors’ Statement of Responsibilities 61
Report of the Audit Committee 65
Report of AB Bank Shahriah Supervisory
Committee 66

4| AB Bank | Annual Report 2020

VISION, MISSION & CORE VALUES

VISION STATEMENT
To be the trendsetter for innovative banking with excellence and perfection

MISSION STATEMENT
To be the best performing bank in the country

CORE VALUES
Our Compliance
We consider adherence to national policies and objectives a priority for giving our customers the best financial support
with corporate integrity, meaning a fully compliant bank along with involvement in social development.

Our Customers
We give the best priority on our customer demand and through our endless effort we assure the best satisfaction to
our customers.

Our Shareholders
We assure the best return to our shareholders by commenced prudent performance.

Our Team Members

We provide secure, satisfying employment, ensuring the contribution of each individual to the success of ABBL.

AB Bank | Annual Report 2020 | 5

 STRATEGIC PRIORITIES

Maximizing the Capital Base

Enhanced Focus on Retail and SME Business

Boosting Non-Funded Business

Expanding Network via Agent Banking

Renewed focus on Asset Quality

Complete transformation to Digital Platform

Attaining further Cost Efficiency

6| AB Bank | Annual Report 2020

CHRONICLES

Certificate of Incorporation December 31, 1981 Business Automation

First meeting of the Board of Directors February 05, 1982 Full Automation of Core Banking Solutions (CBS) March, 2007
Commencement of Business February 27, 1982 Islamic Banking Software ‘Ababil’ Launched July 13, 2008
Opening of the First Branch Mumbai Branch connected with Central Network April 20, 2009
(Karwan Bazar Branch) April 12, 1982 Trade Innovation (TI) Module Roll Out (completed) April 27, 2009
Opening of AB International Finance Limited (ABIFL) Disaster Recovery Site (DR Site) starts operation April 28, 2009
-Subsidiary at Hong Kong November, 1995 Automated Cheque Requisition System May 04, 2009
First Foreign Branch at Mumbai, India April 06, 1996 Digitization of Authorized Signatories October 17, 2009
Opening of the Islamic Banking Branch December 23, 2004 Centralized Fixed Asset Registration December 14, 2009
SMS Banking Services August 10, 2010
Listing with Dhaka Stock Exchange (DSE) December 28, 1983 Cheque truncation & automated clearing process October 07, 2010
Publication of Prospectus for IPO May 05, 1984 Internet Banking Services November 25, 2010
Subscription for Share starts June 25, 1984 Electronic Fund Transfer (EFT) February, 2011
Listing with Chittagong Stock Exchange (CSE) October 21, 1995 Automation of Credit Information Bureau (CIB) August 25, 2011
Online share transaction in CDS May 07, 2006 Automation for Off-shore Banking December 06, 2012
Anti-Money Laundering Solution January 01, 2013
Opening of Merchant Banking Wing (MBW) November 02, 2002 Commencement of Real Time
Incorporation of Arab Bangladesh Bank Foundation November 03, 2003 Gross Settlement System October 29, 2015
Security Custodial Service License January 22, 2007 Customers’ NID Verification Agreement with
Incorporation of AB Investment Limited (ABIL) December 24, 2009 Election Commission November 24, 2015
CBS Upgradation August 06, 2019
Launching of ATM April 12, 2002
Launching of Visa Card December 23, 2004
First ATM Booth launched at Board Bazar Branching-out
(under CBL Network) October 19, 2009 Opening of Principal Branch January 16, 1986
First Branch in Dhaka Division
New Logo Launch January 01, 2008 (Karwan Bazar Branch) April 12, 1982
Opening of AB Bank Training Academy October 07, 2008 First Branch in Chattogram Division
Customer Service Desk placed at Branches November, 2008 (Agrabad Branch) September 19, 1982
First Branch in Sylhet Division
Primary Dealership License December 08, 2009 (Dargah Gate Branch) May 27, 1983
Off-shore Banking Unit December 06, 2009 First Branch in Khulna Division
(Khulna Branch) March 15, 1984
Incorporation of Myanmar Rep. Office December 10, 2010 First Branch in Rajshahi Division
Launching of Internet Banking October 24, 2011 (Bogura Branch) July 25, 1984
Launching of Mobile Apps “AB Direct” August 31, 2017 First Branch in Barisal Division
Lunching of Agent Banking December 24, 2017 (Barisal Branch) October 07, 1986
Registered Office Shifted to Gulshan November 15, 2020 First Branch in Rangpur Division
(Saidpur Branch) July 19, 1986
First Branch in Mymensingh Division
(Mymensingh) May 20, 1999
First SME Center opened
(at Principal Branch) March 29, 2009
First Cash Deposit Machine Service
at Baridhara DOHS October 15, 2017
First Agent Banking Outlet
(Dohar, Joypara, Dhaka) December 24, 2017

AB Bank | Annual Report 2020 | 7

 PRODUCTS & SERVICES

CORPORATE & STRUCTURED FINANCE DEPOSIT ACCOUNTS

 Term Loan  AB Nishchinto
 Time Loan  AB Rb¥f~wg
 Trade Finance  AB Height
 Trust Receipt  Profit First
 Working Capital  Savings Account
 Bill Discounting  MaxSaver
 Letter of Guarantee  SmartSaver
 Syndication Arrangement  Student Account
 Agency Function
 Shampurna
 Syndication Participation
 Payroll Management
 Equity Financing & Arrangement
 Current Account
 Corporate Advisory Service
 Progati
SMALL & MEDIUM ENTERPRISE (SME)  Special Notice Deposit (SND)
 Gati  Chhotopuji  Fixed Term Deposit
 Proshar  Awparajita  Foreign Currency Account
 Digun  Uddog  NFCD
 Sathi  RFCD
 Uttaran
 Progati  Family Savings Plan (FSP)
 Double Deposit Scheme (DDS)
TREASURY AND FOREIGN EXCHANGE PRODUCTS
 Monthly Savings Deposit Scheme (MSDS)
Money Market  Monthly Income Deposit Scheme (MIDS)
 Overnight (call)  Reverse Repo  Millionaire Savings Account (MSA)
 Short Notice Deposit  SWAP  Deposit Double Installment Scheme (DDIS)
 Term Deposit  Foreign Currency Lending
 Repo & Borrowing ISLAMI BANKING
Fixed Income Market Money Market
 Treasury Bill  Treasury Bond  Profit First-Mudaraba Term Deposit
FX Market  Al-Wadiah Current Deposit
 Spot  Corporate  Mudaraba Savings Deposit
 Forward  Mudaraba Special Notice Deposit
 Mudaraba Term Deposit
RETAIL LOAN PRODUCTS
 Mudaraba Pension Deposit Scheme
 Personal Loan (Unsecured)
 Personal Loan (Secured)  Mudaraba Quarterly Profit Paying Deposit Scheme

 Home Loan  Mudaraba Hajj Deposit Scheme

 Auto Loan  Mudaraba Monthly Profit Paying Deposit Scheme
 Credit Card  Mudaraba Cash Waqf Deposit
 Mudaraba Marriage Savings Deposit Scheme
SERVICE PRODUCTS
 24 hour ATM access Investment Products

 Online Banking  Bai-Murabaha

 SMS Banking  Bai-Muajjal
 Internet Banking  Bai-Muajjal (TR)
 SWIFT  Hire-Purchase under Shirkatul Melk (HPSM)
 Locker Service  Murabaha Post-Import (MPI)
 Custodian Service  Quard against MTDR

8| AB Bank | Annual Report 2020

MESSAGE FROM THE CHAIRMAN

As-salamu alaikum,
Honourable Shareholders,
I am presenting this Annual Report to you for the year other medical facilities open to provide services those
2020 in the midst of a global pandemic which has who were suffering.
created havoc in every aspect of our lives. It has affected
the nations across the globe socially through prolonged While we fight the pandemic with the rest of the world
isolation of enforced lockdowns and economically by but for us Bangladeshis this is also a year of great
taking away livelihoods, reducing incomes drastically consequence. We celebrate the birth centenary of our
and in countries like ours, pushing people below the Father of the nation Bongobondhu Sk. Mujibur Rahman,
poverty-line. In fact, global poverty has increased as an whose dream of a separate homeland for us resulted
unwanted impact of the pandemic. There were tragic in Bangladesh and as a historic coincidence we also
personal and family consequences for millions around celebrate the 50th year of our independence and our
the world. Today, as I speak, my thoughts go out to glorious war of liberation. The third and significant
some of our colleagues in the Bank who succumbed event that has made every Bangladeshi around the
to Covid 19 and some of our colleagues lost their dear world proud is our country moving from the lowest
and near ones. We honor their memory and deeply economic category of “Least Developed Country” to
grieve their passing along with their families. We must “Developing Country”. It’s a vindication of our statehood
not forget to condole the death of all our fellow bank which went through the trauma of complete destruction
employees in all the banks in the country for their of its economic infrastructure by the enemy and given
contribution as front line workers in ensuring banking the derogatory epithet of ‘a basket case’.
services. Our deep sadness for the demise of the front-
Dear Shareholders,
line medical workers and doctors at hospitals and
medical facilities all over the country. We also express As a committed corporate citizen, since beginning of
our gratitude to those who kept their emergency and the pandemic, we have strictly enforced all Bangladesh

AB Bank | Annual Report 2020 | 9

 Government and WHO recommended health safety adjustment capacity of the economy. The impact of
measures e.g. mandatory mask requirements, the pandemic on our own economy needs to be also
workplace sanitization on a daily basis, temperature appreciated.
check, hand sanitizers at all premises, social distancing
requirements and have installed sanitizing tunnels at Bangladesh Economy:
major branch and office locations. During the lockdown In Bangladesh, the second part of 2020 showed positive
period, we have ensured flawless services to the recovery from the devastating COVID-19 effect. But that
customers and the clients. Management of the Bank momentum was dampened due to more devastating
ensured rostering and ‘work from home’ for employees second wave of the pandemic. For breaking the virus
without hampering any banking services. This also chain, 66 days’ lockdown was undertaken in 2020. The
motivated our customers to explore, discover and use Government responded to the situation with a number
alternative delivery channels for services rather than of policy changes. Bangladesh bank issued number of
standing in the banking que. I take this opportunity to circulars. To manage the liquidity in the market and for
thank those who continued their work in branches, call reviving the economy from Covid-19 turmoil, in addition
centers and back office in extending services and also to government stimulus packages and other initiatives,
our clients for their patience and understanding. Bangladesh Bank had cut its CRR by 150 basis points
I, on behalf of all of us at AB Bank Limited, would like and also reduced the bank and repo rate. From 2016
to humbly appeal to you to follow all recommended to 2019 Bangladesh was able to maintain 7 percent
and mandatory safety measures. Your cooperation is GDP growth rate, but in 2020 the country managed to
the only way we can confront the pandemic and ensure register 5.24 percent real GDP growth which was the
the safety of all for the future. best performance among the South Asian economies.
In December 2020, inflation rate was 5.29 percent i.e.
Dear Shareholders, within tolerable limit. Bangladesh Bank fixed lending
On behalf of the Board, it is an honor and a privilege rate caps at single digit which impacted interest
for me to present the Annual Report. As you are aware, earning capacities of all the banks. We observed
2020, was a very challenging year in socio-economic surplus in current account balance and to improve the
perspective. As I stated earlier the sustained impact of liquidity condition in the capital market, BB and related
Covid 19 and the inevitable drastic decrease in economic regulatory bodies took several initiatives such as to
activity unleashed forces that shrink an economy. Let create special investment fund of BDT 2 billion, BSEC
us look at what happened globally. approved Investment Corporation of Bangladesh’s (ICB)
BDT 20.0 billion funds for capital market investment
Global economy: and budget for FY21 announced that the Government
Global economy experienced considerable downturn in allowed the investment of undisclosed money into the
2020. Slowdown in economic growth in the advanced capital market without any question from any agencies
as well as emerging market economies contributed after paying 10 percent tax. ADB projected GDP growth
adversely towards the global economy. Covid-19 rate of 6.8 percent for 2021. Overall the monetary policy
shocks were caused simultaneous disruptions to both can be considered an expansionary one, as is the need
supply and demand side of the global economy. On the of the hour.
supply side, we observed infections reduce labor supply
and productivity, while lockdowns, business closures, Financial Performance of the Bank:
and social distancing also cause supply disruptions. It was a very challenging task for the management to
On the demand side, layoffs and the loss of income sustain the turn-around from that started two years back
worsened economic prospects and reduced household in the backdrop of the need for realigning the Bank’s
consumption and investment level. According to IMF fundamental risk management processes, governance
estimates, global economy contracted by 3.3 percent and its other weaknesses. I am encouraged to see the
in 2020 and is projected to grow at 6 percent in 2021, progress in this work done by the management team
moderating to 4.4 percent in 2022. Larger economy under Board’s supervision.
is expected to grow faster by vaccine powered
recovery, where emerging markets and lower income Two years back we, the AB Team, started our task of
developing countries are expected to suffer in medium some urgent reforms in the Bank.
terms. High uncertainty surrounds the global outlook. The areas which reforms were aimed at were:
Future developments will depend on the path of the
1. Restructure and Introduction/Strengthening of
health crisis, including whether the new COVID-19
Retail Banking in the Business Model
strains prove susceptible to vaccines or they prolong
the pandemic; the effectiveness of policy actions to 2. Strengthening and reconstruction of Risk
limit economic damage; commodity prices and the Management

10 | AB Bank | Annual Report 2020

 i. Credit Assessment/Disbursement/Monitoring by BDT 1,832 crore and stood at BDT 27,483 crore.
ii. Recovery of Bad Debt Non-performing loans were reduced by 1.49 percent
compared to the prior year. Consolidated Capital to Risk
iii. Asset Liability and Liquidity Management
Weighted Assets Ratio (CRAR) position increased to
3. Capital Efficiency 11.33 percent compared to the earlier 10.59 percent.
4. Improve Cost Efficiency Bank issued BDT 325 crore subordinated bonds in
5. Enhance Human Capital 2020 and taken several steps to increase the capital
level of the Bank through issuance of Rights Shares and
Strong steps towards reduction of NPL is continuing, bank Perpetual Bonds (subject to shareholders and related
is trying to revamp its business model. While increasing regulatory approvals) in the current year. Based on
the capital base, increasing the business propositions, performance of the Bank, we recommended 5% stock
we are simultaneously working to strengthen the dividend for the year 2020. The Bank successfully
corporate Governance structure. With a financially maintained Advance Deposit Ratio (ADR) and all other
healthy balance sheet, strong corporate governance liquidity parameters prudently in line with regulatory
and robust risk management frameworks and a highly guidelines. We are hopeful that we will continue to
revamped and dedicated management team, we are strive to achieve even better results in 2021 despite the
on the path towards sustained long term profitability challenges of COVID-19 pandemic.
and growth. Apart from doing business, we are always
staying beside the community by addressing the basic Dear Shareholders,
social needs, promoting arts, culture and sports; we also Honorable Shareholders, at the end, I would like to
believe that CSR can be a genuine platform to address express my gratitude for your support and trust, which
growing environmental concerns also. are the key driving forces behind all of our initiatives.
Our very special thanks to all our customers. They
It is gratifying to see that we achieved a great measure have been a source of inspiration for us. On behalf
of success in all these longer term issues but it was of the Board of AB Bank Limited I would like to take
not the cost of taking our eyes away from the need to this opportunity to express our sincere appreciation to
present a sustainable and profitable 2020. I am happy all our regulators and the media for the cooperation.
to say we achieved that too in all business parameters Finally, I would like to thank all our employees past
in 2020. Although the non-performing loan position is and present and our stakeholders for their continued
showing a decreasing trend, still this is a major concern support and trust.
of the Bank.
Let us all pray for a Covid free and prosperous future
I believe we will overcome these challenges, create new for us all.
avenues of business and improve the performance as
well as to restore the image of this great institution. I Thank you all.
believe the AB Team will continue to strive to place the
Bank once again as a market leader. In this backdrop, I As-salamu alaikum
would like to take you through a short synopsis of the
financial performance of the Bank for 2020.

AB was able to maintain operating profit of BDT 647

crore during this pandemic. Deposit was increased
by BDT 1,126 crore and stood at BDT 29,072 crore. Muhammad A. (Rumee) Ali
Loan and advances position of the Bank also increased Chairman

AB Bank | Annual Report 2020 | 11

 MESSAGE FROM THE DESK OF PRESIDENT &
MANAGING DIRECTOR

Dear Shareholders,
As-salamu alaikum,
All over the world, year 2020 will be remembered in Honorable shareholders,
generations due to devastating effect of COVID- 19. I take this opportunity to thank you for your continuous
During the year, we experienced the worst health, social support, inspiration and strength in this hard time. Since
and economic crisis of our lifetime. The pandemic has 2020 our focus has been on life, livelihood, and safety
taken its toll over life and business. It has bound people as well as business in a very changed scenario. We have
to cope with the new normal to adjust and adopt. Like experienced frequent policy changes from the Government,
all other parts of the world, in Bangladesh, ongoing Bangladesh Bank and Securities and Exchange Commission
COVID-19 pandemic is impacting significantly on various which required us to redefine our business model.
aspects of the economy. According to the World Bank, Simultaneously, we prioritized workplace safety protocols
Bangladesh economy is steadily recovering after being as well as ensuring service safety to the customers,
heavily impacted by the COVID-19 pandemic. However, we facilitating employees to work from home and providing
are facing tremendous challenges to sustain this recovery flawless services to the customers. We communicated with
process due to the devastating COVID-19 second wave. our customers on a regular basis to use alternative delivery
Before presenting the business position 2020, we want to channels for banking services from home to which was well
remember and extend our deepest condolences to all of received by the customers. ABBL is one of the first movers
our colleagues, family members, customers, shareholders to channeling Government stimulus packages towards
and everyone who has suffered during the pandemic. recovering the economy as a whole.

12 | AB Bank | Annual Report 2020

Economic Backdrop and what will be its consequences on business. I want to
In 2020 Bangladesh managed to register 5.24 percent assure you that my Team is ready to persevere through the
real GDP growth which was obviously much lower than business changes and succeed in trying times. Moreover, I
the growth rate of 8.15% during 2019. According to believe there are opportunities for us to grow and enhance
recent ADB forecast, GDP will grow by 6.8% in 2021. On our market share. Bank’s Core Banking Solutions have
COVID-19 perspective, the private sector credit growth was been upgraded, different technological platform reformed
8.37% against a target of 11.50% in 2020. In November to easing services with enhanced security. Our main focus
2019 inflation rate crossed 6.0 percent which gradually was to ensure sustainable business growth and profitability.
increased to 6.44 percent in October 2020 and by the We reformed senior management team for effective and
prudent supply-side management of the Government the efficient strategy building and execution. Furthermore, we
inflation rate came down to 5.29% in December 2020. have reoriented the organizational structure entirely, that
would enable us to streamline and simplify our functioning
For managing liquidity in the market and for reviving the to ensure greater efficiency, accountability and productivity.
economy, Bangladesh Bank has cut its Cash Reserve Ratio Cost consciousness was another thing that we completed
(CRR) by 150 basis points (from 5.50 to 4.00 percent). across the board and as a result operating cost has been
Moreover, BB reduced the bank rate from 5.00 to 4.00 reduced by BDT 76 crore in 2020.
percent in July 2020 and also reduced its repo rate from
6.00 to 4.75 percent, aimed to ease ability of the banks to Bank is committed to its vision and determined to create
lend more credit to priority sectors during the pandemic shareholders value. Based on the financials of 2020,
period. The country’s foreign exchange reserves hit a new the Board of Directors of the Bank, declared 5% stock
record of $43.17 billion at the end of 2020. At the end of dividend. For enhancing the capital base, we are going to
December last year, excess liquidity in the banking sector issue Rights shares of BDT 139 crore and Perpetual Bond of
stood at USD 24 billion, which is the highest in recent BDT 500 crore which is subject to regulatory approval. We
times. AD ratio was increased to 87% from 85%. From feel that as we grow, our responsibility towards the society
April 2020, a cap on the lending rate has been set by grows too. Our commitment is to contribute to the society
Bangladesh Bank at 9%. As an effect of this, both lending for improving the lives of people, particularly the segment
and deposit rates witnessed a significant decline. who are underprivileged and less fortunate in terms of
basic needs and remain alongside as sincere benefactor of
Business Performance the country’s rich heritage of arts, culture and sports.

We redefined our business model in 2019 and that has Human resources continue to be the most important asset
continued in 2020. We have prioritized our businesses and of AB. The quality of their output forms the basis of the
trying to achieve sustainable development. In this very institution’s overall performance resulting in its goodwill.
challenging business scenario of 2020 and frequent policy This year, we have conducted several capacity building and
movement, our Bank is able to maintain its operating skill development programs of our employees. We believe
profit of BDT 647 crore. In 2020 Profit after Tax stood at in diversity and therefore, we consciously employ talented,
BDT 39.14 crore compared with BDT 16.77 crore in last self-motivated and pro-active candidates from diverse
year. We are proud to say that Depositors did not lose backgrounds for ensuring creativity, innovation and value-
their confidence in this pandemic and as a testimony to addition in the banking industry.
that, Deposit stood at BDT 29,072 crore in December
2020, which is BDT 1,126 crore higher than the last year. My sincerest gratitude to our valued customers, shareholders
Classified loans were reduced to 16.79% from 18.28% of and stakeholders for their continued support and trust in us,
the last year. We are very determined and taking harder the regulators for their guidance and our Board of Directors
steps towards recovery of these classified loans. Apart from for their pragmatic vision, valuable advice and leadership.
these, Capital to Risk Weighted Assets Ratio increased to Finally, I want to thank all my colleagues who are working
11.33% from 10.59% of the last year. AB was able to hard for mitigating the needs of our customers, increasing
maintain Loan Deposit (LD) ratio within prescribed limit of business value propositions and the community as a whole.
Bangladesh Bank guidelines (below 87%). Other liquidity We are looking forward for a better tomorrow.
parameters like Liquidity Coverage Ratio (LCR) and Net
Stable Funding Ratio (NSFR) of the Bank were well ahead Thank you.
of regulatory requirements.

Dear Shareholders,
It is unknown to the world how this ever-shifting virus Tarique Afzal
can affect us; how severe a COVID-19 third wave may be, President & Managing Director

AB Bank | Annual Report 2020 | 13

14 |
AB Bank | Annual Report 2020
BOARD OF DIRECTORS
From left: Shajir Ahmed, Feroz Ahmed, Tarique Afzal, Muhammad A. (Rumee) Ali, Khairul Alam Choudhury, Shafiqul Alam and Md.Maqsudul Huq Khan
COMPOSITION OF THE BOARD AND COMMITTEES

BOARD OF DIRECTORS EXECUTIVE COMMITTEE

Chairman Chairman
Muhammad A. (Rumee) Ali Feroz Ahmed

Directors Member
Feroz Ahmed Khairul Alam Choudhury
Shajir Ahmed
Khairul Alam Choudhury
Md. Maqsudul Huq Khan

Independent Director SHAHRIAH SUPERVISORY COMMITTEE

Shafiqul Alam
Chairman
President and Managing Director Justice Siddiqur Rahman Miah
Tarique Afzal
Members
Tarique Afzal
Feroz Ahmed
Kaiser A. Chowdhury
AUDIT COMMITTEE Najmul Ehsan
Iftekhar Enam Awal
Chairman Muhammad Musa
Shafiqul Alam

Members
Shajir Ahmed
Md. Maqsudul Huq Khan COMPANY SECRETARY (IN-CHARGE)

Md. Jasim Uddin, ACS

RISK MANAGEMENT COMMITTEE

Chairman
Shafiqul Alam

Members
Feroz Ahmed
Md. Maqsudul Huq Khan

AB Bank | Annual Report 2020 | 15

 AUDIT COMMITTEE
From left: Md.Maqsudul Huq Khan, Shajir Ahmed and Shafiqul Alam
16 | AB Bank | Annual Report 2020
RISK MANAGEMENT COMMITTEE
From left: Feroz Ahmed, Shafiqul Alam and Md.Maqsudul Huq Khan
AB Bank | Annual Report 2020 | 17
 EXECUTIVE COMMITTEE
From left: Feroz Ahmed and Khairul Alam Choudhury
18 | AB Bank | Annual Report 2020
DIRECTORS’ PROFILE

Muhammad A. (Rumee) Ali

Chairman

Mr. Muhammad A. (Rumee) Ali is an iconic banker Mr. Rumee Ali served as Managing Director, Enterprises
with extensive and wide-ranging experience as & Investments at BRAC. During this period he was
CEO, Board Member, and Chairman of several Chairman of BRAC Bank Ltd. and founder Chairman
institutions. of bKash Limited the first mobile financial system in
Bangladesh. He has also served as a member of the
He started his career with ANZ Grindlays Bank Board of BRAC and BRAC International.
(Bangladesh) in 1975 after completing his Masters
in Economics from Dhaka University. In 1997, he In the past he served on the boards of Alliance for
was the first Bangladeshi to be appointed as the Bangladesh workers Safety (USA), Global Alliance
CEO of the Bank’s Bangladesh operations. After for Banking on Values and Performance Based Funds
acquisition of this bank by Standard Chartered Initiative of IFC/World Bank Washington, PKSF
Group in 2000, he was selected to be the first CEO Bangladesh. He was made a Fellow of the Institute
of the combined operations of these two banks as of Bankers, Bangladesh in 2001. In addition, he has
Standard Chartered Bank. participated in many international forums as key-note
speaker and panelist.
In November, 2002 he joined Bangladesh Bank as
Deputy Governor and was responsible for driving Mr. Rumee Ali, is also currently the CEO of Bangladesh
the regulatory reforms in the country’s banking International Arbitration Centre.
sector, especially in the Risk Management and
Corporate Governance areas. He, very successfully,
worked as a central banker for four years.

He has repeatedly proven himself to be an

eminently capable leader in a number of high
profile executive appointments.

AB Bank | Annual Report 2020 | 19

 Feroz Ahmed Shajir Ahmed
Director Director

Mr. Ahmed is the Chairman of Elite Paint & Chemical Mr. Shajir Ahmed completed his Bilingual Diploma
Industries Ltd., Hexagon Chemical Complex Ltd. degree on International Baccalaureate (IB) from
and Managing Director of Elite International Ltd., United World College of South East Asia, Singapore.
Ahmed Securities Services Ltd. and FDN Energy Ltd. Following which, he graduated in Business
among others. Apart from business activities, Mr. Management from Kings College London under
Feroz is also involved with various Socio-Cultural, University of London in 2008. In 2009, he started his
Philanthropic and Sports organizations. He was first job as a Central Accounts Officer in Habib Bank
associated with the Bangladesh Cricket Board (BCB) AG Zurich, Dubai.
as its AD-HOC Executive Committee Member. He
Upon Mr. Ahmed’s return to Bangladesh in 2010,
is also a Member, Board of Trustees, Chittagong
he joined his family business as the Director
Independent University, life member of Chittagong
of Elite Paint & Chemical Industries Limited, a
Zila Krira Sangstha and member of the Chattogram
pioneer manufacturer of different graded paints in
Mohanagari Krira Sangstha. He is a life member of
Bangladesh. At present, Mr. Ahmed is the Managing
Red Crescent Society, Chattogram, Maa O Shishu
Director of Super Silica Bangladesh Limited and the
Haspatal, Chattogram.
Director of Super Tel Limited, Super Sea Fish (Pvt.)
Limited, Elite Super Plastic Ind. (Pvt.) Limited, Super
Shares & Securities Limited., Elite Food Industries
Limited, Broast Foods Ind. (Pvt.) Limited and Aurora
Decor Limited.

Mr. Ahmed also holds the position of Deputy

Managing Director of Super Refinery (Pvt.) Limited,
the first Natural Gas Condensate Refinery in the
private sector since June 01, 2006 till date.

20 | AB Bank | Annual Report 2020

Khairul Alam Choudhury Md. Maqsudul Huq Khan
Director Director

Mr. Khairul Alam Choudhury, Barrister-at-Law Maqsudul H. Khan is a Supply Chain and Compliance
is a Director of AB Bank Limited. He graduated professional. Currently he is working as General
from University of Wolver Hampton, UK in 2001. Manager, Supply Chain & Commercial Division of
Thereafter, Mr. Choudhury obtained his post- Millennium Automotive Group. Prior to holding this
position he had served Bureau Veritas, a renowned
graduation from the City University, UK in 2002
French multinational conglomerate for about a
and was also called to the Bar from Lincoln’s Inn,
decade. He has a successful professional career in
London in 2002. Mr. Choudhury is a practicing Operations, Compliance and Legal Affairs. He also
lawyer of the Supreme Court of Bangladesh. worked as the Head of International Trade Division
(ITD) of a multinational organization (BVQI) which
is the global leader in Quality Assurance, Health,
Safety and Environmental Solutions.

Maqsudul holds an International Diploma in Supply

Chain Management from ITC-UNCTAD/WTO,
Geneva. Prior to obtaining Bachelor of Laws (LLB)
and Masters in Business Administration (MBA), he
completed the Certified Supply Chain Professional
(CSCP) course from American Production and
Inventory Control Society (APICS).

AB Bank | Annual Report 2020 | 21

 Shafiqul Alam Tarique Afzal
Independent Director President & Managing Director

Mr. Shafiqul Alam joined AB Bank as an Independent Mr. Tarique Afzal joined AB Bank in 2018 as Deputy
Director with effect from September 7, 2020. Managing Director - Head of Corporate, Legal
Mr. Alam, a seasoned banker having 40 years of & Regulatory Affairs. Subsequently he has been
banking experience, served in different Senior appointed as the President & Managing Director
Management positions in local and multinational
with effect from July 08, 2019.
banks. He obtained his M.Sc degree from the
University of Dhaka. Mr. Alam started his career
Prior to joining AB Bank he was the Chief Executive
with ANZ Grindlays Bank (Bangladesh) in 1980,
Officer of Sonali Polaris Financial Technology
in which institution he continued until 2001. He
Limited a joint venture of Sonali Bank and Polaris,
served Prime Bank Limited, First Security Islami
Bank Limited and United Commercial Bank Limited India.
holding senior positions and during 2013-2019
he served Jamuna Bank Limited as its Managing Mr. Tarique Afzal, to his credit, has impressive
Director & CEO. overseas work experiences and worked in London
during the late 1980s and in Credit Union in Canada,
later served in ANZ Grindlays Bank and Standard
Chartered Bank in Bangladesh.

He also worked in Bank Alfalah, BRAC Bank and

served as the CEO for Dun & Bradstreet Rating
Agency in Bangladesh.

His core competencies are creating new business

streams, operational efficiency, performance
improvements and regulatory relationships.

22 | AB Bank | Annual Report 2020

 7
5 9
3

2 6

4 8 10

CORE SENIOR MANAGEMENT TEAM

From left: 1) Abdur Rahman, 2) Mahmudul Alam, 3) Shabbir Huda, 4) Syed Mizanur Rahman, 5) Iftekhar Enam Awal, 6) K. M. Mohiuddin Ahmed
7) M. N. Azim, 8) Tarique Afzal, 9) Md. Aminur Rahman and 10) Sajjad Hussain

AB Bank | Annual Report 2020 | 23

 SENIOR MANAGEMENT TEAM
Tarique Afzal
Chairman
President & Managing Director
Sajjad Hussain, Additional Managing Director
Member Secretary
Head of Operations, CAMLCO & CRO
Abdur Rahman, DMD
Member
Head of Retail Banking
Mahmudul Alam, DMD
Member
Head of Credit
Syed Mizanur Rahman, SEVP
Member
Head of Relationship & Agent Banking
Md. Aminur Rahman, SEVP
Member
Head of General Banking Operations & Service Excellence
Iftekhar Enam Awal, SEVP
Member
Head of Business - Corporate & SME
K. M. Mohiuddin Ahmed, EVP
Member
Chief Financial Officer
M. N. Azim, EVP
Member
Head of Financial Institutions and Treasury
Shabbir Huda, EVP
Member
Head of HRMD (Acting)
Najmul Ehsan
Member
Chief of Credit Review and Process Management
Golam Mahmud Rizvi, SEVP
Member
Head of General Services, Security & Procurement
Z. M. Babar Khan, SEVP
Member
Head of Credit Risk Management
Mahadev Sarker Sumon, SEVP
Member
Head of Special Asset Management
Md. Jahangir Alam, SEVP
Member
Deputy Chief Risk Officer
Sheikh Md. Reajul Islam, EVP
Member
Head of Treasury Back Office
Munir Ahmed, SVP
Member
Head of DICC (In-Charge)
Md. Shahidul Haque, SVP
Member
Head of CAM (Acting)
Khandaker Anwar, SVP
Member
Head of IT (Acting)
Farid Ahammad Fakir, VP
Member
Head of Kakrail Islami Banking Branch

24 | AB Bank | Annual Report 2020

INVESTOR RELATIONS

AB Bank | Annual Report 2020 | 25

 FORWARD LOOKING STATEMENT

Annual Report for the year 2020 contains actual facts

& where applicable statements based on assumptions,
estimates, beliefs and future expectations. Such
forward looking statements may include but not
limited to future plan, performance, growth of
business, profitability and cash flow of the Bank which
are subject to known and unknown risks. Actual
performance or results may materially differ from
original plan, assumptions, estimates or expectations
expressed or implied in forward looking statements.
Therefore, undue reliance should not be placed on such
statements for making any decisions, transactions or
investments with the Bank. Bank does not guarantee
in anyway that the expressions made or implied in
forward looking statements would be materialized.

Bank does not also take any responsibility to update,

modify or revise any forward looking statements
contained in this Annual Report irrespective of whether
those are changed by any new events, information or
future development or by any other factors.

26 | AB Bank | Annual Report 2020

SHAREHOLDERS’ INFORMATION

In Crore Taka
AB Bank Limited Consolidated
Particulars
2020 2019 % Growth 2020 2019 % Growth
At the end year
Equity 2,449 2,284 7% 2,568 2,403 7%
Total Deposits 29,072 27,946 4% 29,055 27,939 4%
Loans & advances 27,483 25,651 7% 28,290 26,439 7%
Investments 6,344 6,158 3% 6,409 6,242 3%
Fixed assets 449 487 -8% 503 543 -7.3%
Total assets 38,576 36,557 5.5% 38,857 36,808 5.57%
Performance during the year
Interest Income 2,429 2,672 -9% 2,443 2,695 -9%
Operating Profit 647 645 0% 665 647 3%
Provision for loans and others 514 514 0% 532 511 4%
Profit before tax 132 131 1% 133 136 -2%
Provision for tax 93 114 -18% 94 124 -24%
Profit after tax 39 17 133% 39 12 220%
Statutory Ratios
Liquid Assets 25.58% 26.84% 25.58% 26.84%
Capital adequacy ratio 10.84% 10.12% 11.33% 10.59%
Share information
Earnings per share (Taka) 0.49 0.21 133% 0.50 0.15 223%
Stock Dividend (Proposed) 5% 5% - -
Net Asset Value per share (Taka) 30.76 30.13 2% 32.26 31.69 2%
Ratios
Classified Loan 16.79% 18.28% 16.31% 17.74%
Return on Assets (ROA) 0.10% 0.05% 0.10% 0.04%
Return on Equity (ROE) 1.65% 0.74% 1.59% 0.51%

AB Bank | Annual Report 2020 | 27

 SHAREHOLDERS PATTERN

Number of Shares % of Shares

Particulars
2020 2019 2020 2019
Sponsors & Directors 235,827,577 221,739,099 29.63% 29.25%
Local Institutions 255,957,105 258,280,728 32.15% 34.07%
Govt. of Bangladesh 4,562,961 4,345,678 0.57% 0.57%
Foreign Institutions 7,205,885 7,838,226 0.91% 1.03%
Non-residential Bangladeshi 1,674,427 1,447,475 0.21% 0.19%
General Public 290,808,875 264,479,109 36.53% 34.89%
Total 796,036,830 758,130,315 100% 100%

Note: Sponsors’ & Directors Shareholding as of January 20, 2021 was 31.67% and April 30, 2021 was 31.67%

No. of Shareholding including

nominating institution/indi-
Name of Director Status vidual
31.12.2020 31.12.2019
Mr. Muhammad A. (Rumee) Ali
Chairman 79,480,564 75,696,901
Nominated by Pacific Traders Limited
Mr. Feroz Ahmed Director 16,516,704 15,730,196
Mr. Shajir Ahmed
Nominated Director 21,804,184 20,765,890
Nominated by Hexagon Chemical Complex Ltd.
Mr. Khairul Alam Choudhury
Nominated Director 77,865,692 74,157,802
Nominated by Pacific Industries Limited
Mr. Kaiser A. Chowdhury Ex-Independent Director - -
Mr. Shafiqul Alam Independent Director - -
President & Managing
Mr. Tarique Afzal - -
Director
• Mr. Kaiser A. Chowdhury resigned in the Bank’s 702nd Board Meeting held on January 18, 2021.

28 | AB Bank | Annual Report 2020

GRAPHICAL PRESENTATION

AB Bank | Annual Report 2020 | 29

30 | AB Bank | Annual Report 2020
AB Bank | Annual Report 2020 | 31
 LAST 10 YEARS’ PERFORMANCE

In Million Taka

Particulars 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011

Balance Sheet

Cash & bank balances 25,294 25,121 19,611 21,768 24,265 21,744 20,436 17,338 18,499 17,524

Investments 63,437 61,579 43,594 45,749 48,187 32,559 30,779 28,676 26,115 21,556

Money at call and short notice 2,500 4,776 1,429 1,170 6,806 5,284 3,863 2,251 3,672 666

Loans & advances 274,830 256,512 241,070 229,647 218,769 209,725 177,571 140,121 106,066 94,638

Fixed assets 4,489 4,871 3,543 4,113 4,080 4,201 4,405 4,173 4,230 3,854

Other assets 14,877 12,366 12,936 12,117 12,728 11,496 9,277 15,446 15,261 14,725

Non-banking assets 334 343 343 - - - - - - -

Total assets 385,762 365,569 322,526 314,565 314,836 285,010 246,331 208,006 173,842 152,963

Borrowings 19,108 14,820 18,272 21,871 15,454 23,693 10,977 9,987 3,649 10,248

Subordinated Bond 9,350 7,400 8,700 6,000 6,500 6,500 2,500 - - -

Deposits 290,719 279,458 235,445 235,954 245,641 213,819 198,189 161,846 140,026 116,152

Other liabilities 42,098 41,050 37,458 27,968 24,126 18,206 15,351 19,232 14,133 11,710

Equity 24,487 22,840 22,650 22,771 23,114 22,792 19,314 16,940 16,034 14,853

Total Liability & Shareholders’ Equity 385,762 365,569 322,526 314,565 314,836 285,010 246,331 208,006 173,842 152,963

Total contingent liabilities 59,191 47,836 57,209 65,451 73,479 68,649 77,069 83,217 59,590 52,595

Loan Deposit Ratio* 85.26% 84.28% 91.09% 86.24% 83.67% 96.80% 89.60% 86.58% 75.75% 81.48%

Interest earning assets 303,276 284,417 214,825 270,093 272,625 249,985 215,691 175,978 144,167 125,049
Non-Interest earning assets 82,486 81,151 107,701 44,472 42,211 35,026 30,640 32,028 29,676 27,914

Profitability

Net interest margin 4,157 7,869 1,910 2,670 2,837 4,279 6,079 3,780 3,123 2,394

Operating income 12,146 12,884 8,648 10,347 11,018 10,582 12,155 9,755 8,435 7,743

Operating expenses 5,679 6,434 5,573 5,871 5,999 5,628 5,230 4,465 4,072 3,431

Operating profit 6,467 6,450 3,075 4,476 5,019 4,954 6,925 5,290 4,363 4,312

Provision for loans and others 5,145 5,141 2,519 4,634 3,017 2,195 2,946 2,305 1,173 1,355

Profit before tax 1,322 1,309 556 (158) 2,002 2,759 3,979 2,985 3,190 2,957

Provision for tax 931 1,141 538 (188) 697 1,489 2,719 1,974 1,752 1,629

Profit after tax 391 168 18 30 1,305 1,270 1,260 1,011 1,439 1,328

Cost income ratio 46.76% 41.35% 64.44% 56.74% 54.44% 52.86% 43.03% 45.78% 48.27% 44.31%

Return on investment (ROI) 10.34% 6.07% 9.58% 10.18% 13.50% 10.49% 9.68% 10.37% 11.39% 14.62%

Return on assets (ROA) 0.10% 0.05% 0.01% 0.01% 0.44% 0.48% 0.54% 0.53% 0.88% 0.93%

Return on equity (ROE) 1.65% 0.74% 0.08% 0.13% 5.68% 6.03% 6.95% 6.13% 9.31% 9.25%

Assets Utilization Ratio 78.62% 77.80% 66.61% 85.86% 86.59% 87.71% 87.56% 84.60% 82.93% 81.75%

Cost of fund 8.35% 8.71% 8.64% 7.52% 8.06% 9.75% 10.63% 11.82% 12.07% 11.19%

Earnings Per Share 0.49 0.21 0.02 0.04 1.64 1.60 1.58 1.27 1.81 1.67

Net income per share 0.49 0.21 0.02 0.04 1.64 1.60 1.58 1.27 1.81 1.67

32 | AB Bank | Annual Report 2020

 In Million Taka

Particulars 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011

Other business
Import 32,650 47,370 89,630 104,916 115,794 111,245 112,220 125,383 100,373 79,463
Export 46,800 55,110 73,450 75,109 76,052 72,982 77,252 72,571 65,782 57,592
Remittance (Million USD) 210 265 330 300 254 280 299 237 217 250
Equity measures
Authorized capital 15,000 15,000 15,000 15,000 15,000 6,000 6,000 6,000 6,000 6,000
Paid-up capital 7,960 7,581 7,581 7,581 6,739 5,990 5,325 4,976 4,423 3,686
Capital - Tier 1 19,570 18,712 19,194 19,731 18,703 18,339 16,561 15,570 14,630 13,410
Capital - Tier 2 17,396 14,836 13,852 11,556 11,938 9,994 6,238 3,203 2,552 2,534
Total capital 36,966 33,547 33,046 31,286 30,640 28,333 22,799 18,772 17,181 15,943
Capital surplus/ (deficit)** (5,666) (7,875) (6,092) (1,310) 462 2,780 712 1,385 2,532 1,920
Statutory reserve 7,144 6,872 6,623 6,549 6,496 6,111 5,582 5,565 5,005 4,390
Retained earnings 5,687 5,817 5,905 6,012 6,810 6,831 6,768 4,986 5,159 5,291
Capital to Risk Weighted Assets Ratio 10.84% 10.12% 10.03% 10.80% 10.79% 11.09% 10.32% 10.80% 11.73% 11.37%
Asset quality
Total loans & advances 274,830 256,512 241,070 229,647 218,769 209,725 177,571 140,121 106,066 94,638
Classified loans (CL) 46,155 46,890 79,728 16,409 11,365 6,619 6,856 4,720 3,522 2,672
CL ratio 16.79% 18.28% 33.07% 7.15% 5.19% 3.16% 3.86% 3.37% 3.32% 2.82%
Provision for unclassified loan 11,267 8,286 5,561 4,871 4,099 2,119 1,930 1,707 1,270 1,317
Provision for classified loan 8,958 6,994 5,079 3,862 2,506 2,596 2,924 2,273 1,049 1,031
Share information
Market Price per share (DSE) 12.10 7.90 12.00 22.10 22.30 20.90 29.90 26.20 33.70 68.30
Dividend - % 5.0 *** 5.0 - - 12.5 12.5 12.5 12.0 12.5 25.0
Bonus - % 5.0 5.0 - - 12.5 12.5 12.5 7.0 12.5 20.0
Cash - % - - - - - - - 5 - 5

Price earning ratio (times) 24.61 35.71 521.32 594.32 13.61 13.10 18.89 28.50 18.65 40.94
Net Asset Value per share (Taka) 30.76 30.13 29.88 30.04 34.30 38.05 36.27 34.04 36.25 40.29
Distribution network
Number of branches 105 105 105 105 104 101 93 89 87 86
Number of SME service center 11 11 11 11 11 11 11 11 11 11
Employee number 2,202 2,210 2,310 2,354 2,423 2,276 2,220 2,179 2,070 2,096
Number of Agent Banking Unit 101 64 34 5 - - - - - -
* Loan-deposit ratio calculation has been done as per Bangladesh Bank guidelines.
** Considering capital conservation buffer @2.5%
*** Recommended by the board

AB Bank | Annual Report 2020 | 33

 FINANCIAL CALENDAR

QUARTERLY RESULTS OF 2020 ANNOUNCEMENT

Unaudited results for the 1st Quarter ended 31st March 2020 June 29, 2020

Unaudited result for the 2nd quarter and half-year ended 30th June 2020 July 16, 2020

Unaudited results for the 3rd Quarter ended 30th September 2020 October 29, 2020

Audited consolidated results for the year ended 31st December 2020 April 27, 2021

38th AGM INFORMATION

Price Sensitive Information June 29, 2020
Record Date August 10, 2020
Date of AGM- at 4:00 p.m. through Digital Platform September 2, 2020
Publication of 38th AGM Notice August 10, 2020
Annual Report-2019 Dispatch August 12, 2020
Stock Dividend Credited September 7, 2020
Cash Dividend Distribution N/A

39th AGM
Publication of Price Sensitive Information April 27, 2021
Record Date May 19, 2021
Publication of notice of the 39th AGM May 19, 2021
Date of 39th AGM – at 04:00 p.m. through Digital Platform June 10, 2021

STOCK DETAILS
Particulars DSE CSE
Stock symbol ABBANK ABBNK
Listing Year 28th December, 1983 21st October, 1995
Market category B B
Electronic share YES YES
Face Value (Taka) 10 10
Paid-up Capital 7,960,368,300 7,960,368,300
Market lot 1 1
Total Number of Securities 796,036,830 796,036,830

Availability of Information about Annual Report

Annual Report 2020 and other information is available at http://abbl.com/investor-relations/

34 | AB Bank | Annual Report 2020

PRICE TREND OF AB BANK SHARE

Period January to December 2020

Year End closing Tk. 12.10
Year High Tk. 13.00
Year Low Tk. 6.40
Average Trade Volume (Per Day) 1,179,196 shares
Total Trade Volume 244,093,545 shares

AB Bank | Annual Report 2020 | 35

36 | AB Bank | Annual Report 2020
THE 38TH AGM

38th AGM of the Bank held on digital platform

AB Bank | Annual Report 2020 | 37

 EVENTS

Agreement signing ceremony between AB Bank and Pan Pacific Sonargaon, Dhaka extending banking services

Business Meeting

38 | AB Bank | Annual Report 2020

EVENTS

AB Women’s Social - an event organized for the women employees

Agreement signing ceremony with BURO Bangladesh

AB Bank | Annual Report 2020 | 39

 EVENTS

The 700th Board of Directors’ meeting of the Bank was held at bank’s Head Office

Inaugurated of Sub-Branch at The Skymark, 18 Gulshan Avenue, Dhaka

40 | AB Bank | Annual Report 2020

EVENTS

Agreement signing ceremony with Green Delta Insurance Company Limited regarding Bankers Blanket Bond (BBB) &
Electronic Computer Crime (ECC) insurance policy

AB Bank signed an agreement with Shaheda Higher Education Consultancy

AB Bank | Annual Report 2020 | 41

 EVENTS

AB Bank organized a training program of Financial Statement Analysis

Banking Foundation Course for the Front Desk Officers organized by AB Traning Academy

42 | AB Bank | Annual Report 2020

NEW PRODUCT LAUNCHING

AB Bank launched new banking service titled “AB 360° Banking Services (One-Stop Service)” and Rebranding AB Agent
banking logo

AB Jonmobhumi - a new product launched for encouraging remittance

AB Bank | Annual Report 2020 | 43

 NEW PRODUCT LAUNCHING

The Bank launched AB Nishchinto - a new product providing insurance coverage for the fixed deposit customers

Inaugurating an ATM Booth at Pan Pacific Sonargaon, Dhaka

44 | AB Bank | Annual Report 2020

CORPORATE GOVERNANCE

AB Bank | Annual Report 2020 | 45

 AB STRUCTURE

AB Structure

Local Foreign

Conventional Branches Local Mumbai Branch, India

Full Fledged Branch

Islamic Banking Branch Representative Office

(Yangon, Myanmar)

Off-Shore Banking Unit (OBU) Subsidiaries and its shareholding

Agent Banking AB International Finance Ltd.

100%
(ABIFL)

Custodial Service

Subsidiaries and its shareholding

AB Investment Ltd. (ABIL) 99.99%

AB Securities Ltd. (ABSL) 99.91%

CashLink Bangladesh Ltd. (CBL) 90%

Arab Bangladesh Bank Foundation

99.60%
(Philanthropic Organ)

46 | AB Bank | Annual Report 2020

CORPORATE GOVERNANCE

Corporate Governance policies and practices of the Bank of Quarterly, Half-yearly and Yearly Financial Statements
are focused on ensuring fairness, transparency and and other statutory reports. Any significant development
accountability in the organization as a whole. Bank is in the business is forth-with disclosed through the
structured and systems and processes are organized adherence of proper rules/guidelines/directives in the
aligned with accepted Corporate Governance practices form of Price Sensitive Declarations.
and also in line with guidelines of Bangladesh Bank and
the Bangladesh Securities and Exchange Commission Bank also ensures submission of returns to Regulatory
(BSEC) in this regard. While pursuing the goal of Bodies in full-compliance of the requirements and
Shareholders value addition, Bank attached utmost appropriate disclosures ensuring transparency and
importance to setting up of well-defined compliance accountability.
oriented organization and business structure.
Board of Directors ensures adequate disclosures for the
Board of Directors of AB Bank Limited comprises of Shareholders and other stakeholders through the Annual
7 (seven) Members including President & Managing Report or other specific disclosures if required.
Director. Board of Directors of AB Bank is a professionally
run forum having Members from various backgrounds Delegation of Power
and professions. Management empowered with appropriate finance and
business decision making authorities as per the guidelines
Board is the apex body for strategy and policy
of Bangladesh Bank.
formulations and for taking decisions on business,
operational and financial matters besides ensuring Credit Committee delegated with the authority for credit
compliance and risk management of the Bank. This is approval up to a given limit. Board has approved a
run professionally following the guidelines of Bangladesh Procurement Manual to cover the purchase of goods and
Bank and within the authorities of the Memorandum and services and other procurements of the Bank. Limited
Articles of Associations of the Bank. Management of the formal delegation in this respect has also been given to
Bank operates within the policies, guidance and limits the Management.
approved by the Board.
Besides, various manuals, policies and guidelines were
During 2020, Board Meeting held at least once in a month. approved by the Board from time to time with levels of
authority and process delegation varied across the Bank.
Audit Committee comprises of 3 (three) Members.
Chairman of the Audit Committee is the Independent Bank also has well empowered ALCO to deal with funding
Director of the Board. Company Secretary acts as the and treasury matters.
Secretary of the Committee while other Members of the
Management attend the Committee Meeting on invitation President & Managing Director is the Executive Head of
only. Audit Committee works within scope of Bangladesh the Bank. Bank has approved Organizational Structure
Bank guidelines and Corporate Governance Codes. (Organogram) up to the Unit Level with clear functional
segregation and segregation of processing functioning
Risk Management Committee (RMC) of the Bank has (Front and Back office) authorities. This ensures Core
been formed in compliance of Bank Company Act, 1991 Risk Management compliance across the Bank. Bank’s
as amended up to 2018, under section 15 Kha, and functions and plans also consider various regulatory
subsequent BRPD Circular # 11 Dated October 27, 2013. limits and restrictions to be risk compliant, as well.
At present, RMC comprises of 3 (three) Board Members
and the Chairman of the Audit Committee is also the Risk Management Division (RMD) formed in compliance
Chairman of the RMC. Function of the RMC is to minimize with the relevant guidelines of Bangladesh Bank. Bank
risk regarding Strategic planning & implementation and also has a strong Supervisory Review Process (SRP)
to accomplish Board functions accurately related to risk. Team in place.
Shariah Supervisory Committee of the Bank has 7 (seven) In the overall, Bank is governed by the rules, regulations,
Members for overseeing and strategic guidance of the codes, directions, and policies as applicable for the
Islamic Banking business. The Committee comprises Banking business and operation. Different control
of scholarly persons and operates as per the assigned aspects based on need are in place, which includes
responsibilities. capital adequacy, risk management, market, liquidity,
anti-money laundering compliance, prudential guidelines,
Regulatory Compliance Disclosure reporting standards among others.
Bank has been following related guidelines on submission

AB Bank | Annual Report 2020 | 47

 Other operations of AB Bank like AB International Finance Auditors submitted a Management Report with a
Limited (ABIFL) at Hong Kong, and the Branch in Mumbai, Special Section on the “Internal Control & Compliance”
India, governed by the rules and regulations of the and “Money Laundering Prevention Risk Management”
respective countries. While the three local subsidiaries - of the Bank. The Report was discussed in the Audit
AB Investment Limited (ABIL) and AB Securities Limited Committee.
(ABSL), Cashlink Bangladesh Limited (CBL) governed by
rules and regulations of the Bangladesh Securities and Department of Internal Control and Compliance (DICC)
Exchange Commission (BSEC) mostly. Arab Bangladesh
Bank has a separate Department for Internal Control &
Bank Foundation, philanthropic entity of the Bank is
Compliance. This Department operates independently
being conducted under the Society Registration Act.
in line with the Bangladesh Bank guidelines. Head of
Audit is accountable to the Audit Committee of the
Business Plan vs Achievements in 2020
Board.
Business Plan of the Bank provides for the Working
Platform embodying the growth aspect, profitability, Credit Rating
risk appetite, capital management etc. It also AB Bank was rated by ARGUS Credit Rating Services
embodies accountability in terms of set KPI’s and acts Limited (ACRSL) based on the financials of the Bank
as a roadmap for Shareholders value addition. up to December 31, 2019 (audited) as well as for the
period ended September 30, 2020 (unaudited) and other
Overall performance of the Bank in 2020 with respect relevant quantitative and qualitative information up to
to Business Plan Target are given below: the date of rating declaration i.e. December 09, 2020.
Amount in Crore Tk.
The summary of their ratings are given below:
Variance
BGT ACT
Performance 2020 2020 CREDIT RATING CURRENT PREVIOUS
Amount %

Operating Profit 972 647 (325) (33) Long-Term* AA- A+

Provisions for loans 617 514 (103) (17)

Short-Term ST-2 ST-2
and others
Date of Rating December 09, 2020
Profit before Tax 355 132 (222) (63)
Date of Validity December 08, 2021
Provision for Tax 206 93 (113) (55)
*AA-: equivalent Bangladesh Bank Rating Grade 1
Net Profit After Tax 149 39 (110) (74)
A+: equivalent Bangladesh Bank Rating Grade 2
Loans and Advances 27,651 27,483 (133) (0)
Rating Description
Import 10,000 3,265 (6,735) (67)

Export 8,272 4,680 (3,592) (43) Investment grade. Very high credit quality
Guarantee 2,000 818 (1,182) (59)
and minimal expectation of credit risk.
When assigned this rating indicates the
Inward Remittance AA-
100 21 (79) (79) obligor has very strong capacity to meet its
(USD)
financial obligations and is unlikely to be
impacted adversely by foreseeable events.
Inspection by Bangladesh Bank
High certainty of timely payment. Liquidity
Bangladesh Bank conducted comprehensive inspection
factors are strong and sup-ported by
for the year ended December 31, 2020. Tripartite ST-2
good fundamental protection factors. Risk
meeting among Bangladesh Bank, External Auditors factors are very small.
and Management of AB held for finalization of Annual
Financial Statements. Compliance
Bangladesh Securities and Exchange Commission
External Audit (BSEC) issued Corporate Governance Code-2018
External Auditors covered 11 (eleven) Branches and (Notification dated June 3, 2018) for the companies
Head Office as part of the Annual Audit Program. listed with the Stock Exchanges. Certification on
Auditors covered 82% of the risk assets. Compliance status is enclosed herewith.

48 | AB Bank | Annual Report 2020

S. F. Ahmed & Co. Phone: (880-2) 989-4258, 987-1018, 987-0619
House 51 (3rd Floor) 987-0561, 881-6467 & 881-5101
Road 9, Block F, Banani Cell: (880) 1911-341-139
Dhaka 1213, Bangladesh Fax : (880-2) 882-5135
E-mails: (i)[email protected]
(ii)[email protected]
Website: www.sfahmedco.org

[Certificate issued as per condition #1(5)(xxvii) of Corporate Governance Code of

BSEC vide notification no. BSEC/CMRRCD/2006-158/207/Admin/80 dated 03 June 2018]

We have examined the compliance status with the Corporate Governance Code by AB Bank Limited (“The Company”)
for the year ended 31 December 2020. This code relates to the notification no. BSEC/CMRRCD/2006-158/207/Admin/80
dated 03 June 2018 of Bangladesh Securities and Exchange Commission.

Such compliance with Corporate Governance Code is the responsibility of the Company. Our examination was limited to
the procedures and implementation thereof as adopted by the management in ensuring compliance with the conditions
of the Corporate Governance Code.

This is a scrutiny and verification and an independent audit on compliance with the conditions of the Corporate
Governance Code as well as the provisions of relevant Bangladesh Secretarial Standards (BSS) as adopted by the
Institute of Chartered Secretaries of Bangladesh (ICSB) in so far as those standards are not inconsistent with any
condition of this Corporate Governance Code.

We state that we have obtained all the information and explanations, which we have required, and after due scrutiny
and verification thereof, we report that, in our opinion:

(a) The Company has complied with the conditions of Corporate Governance Code as stipulated in above mentioned
Corporate Governance Code issued by the Commission; except condition no.1(7), 4(ii) and 6 due to regulations of
Bangladesh Bank as stated in Annexure-A;

(b) The Company has complied with the provisions of relevant Bangladesh Secretarial Standards (BSS) as adopted by
the Institute of Chartered Secretaries of Bangladesh (ICSB) as required by this Code;

(c) Proper books and records have been kept by the Company as required under the Companies Act, 1994, the
securities laws and other relevant laws; and

(d) The governance of the Company is satisfactory.

Dhaka, Bangladesh S. F. Ahmed & Co.

Dated, 11 May 2021 Chartered Accountants
Md. Moktar Hossain, FCA
Senior Partner

AB Bank | Annual Report 2020 | 49

 Annexure: A
Status of Compliance with the conditions imposed by the Bangladesh Securities and Exchange Commission’s Notification
No( SEC/CMRRCD/2006-158/207/Admin/80 dated 03 June 2018 issued under section 2CC of the Securities and Exchange
Ordinance, 1969 is presented below:
Compliance Status (“√” has been
Condition put in the appropriate column) Remarks
Title
No (if any)
Complied Not Complied
1 Board of Directors (BoD)
Board size (number of Board members - minimum 5 and
1(1) √
Maximum 20)
1(2) Independent Directors
At least one fifth (l/5) of the total number of Directors shall
1(2)(a) √
be Independent Directors
1(2)(b) Independent Director means a Director
who either does not hold any share in the company or
1(2)(b)(i) holds less than one percent (1%) shares of the total paid- √
up Capital of the company

who is not a sponsor of the company or is not

connected with the company’s any sponsor or
director or nominated director or shareholder of the
company or any of its associates, sister concerns,
1(2)(b)(ii) subsidiaries and parents or holding entities who holds one √
percent (1%) or more shares of the total paid-up shares
of the company on the basis of family relationship
and his or her family members also shall not hold above
mentioned shares in the company
who has not been an executive of the company in
1(2)(b)(iii) √
immediately preceding 2 (two) financial years
who does not have any other relationship, whether
1(2)(b)(iv) pecuniary or otherwise, with the company or its subsidiary/ √
associated companies
who is not a member or TREC holder, director or officer of
1(2)(b)(v) √
any stock exchange

who is not a shareholder, director or officer of any member

1(2)(b)(vi) √
of stock exchange or an intermediary of the capital market

who is not a partner or executive or was not a partner

or an executive during the preceding 3 (three) years of
1(2)(b)(vii) the company’s statutory audit firm or audit firm engaged √
in internal audit services or audit firm conducting special
audit or professional certifying compliance of this code.
who shall not be an independent director in more than 5
1(2)(b)(viii) √
(five) listed companies
who has not been convicted by a court of competent
1(2)(b)(ix) jurisdiction as a defaulter in payment of any loan to a bank √
or a Non-Bank Financial Institution (NBFI)
who has not been convicted for a criminal offence involving
1(2)(b)(x) √
moral turpitude
Independent Director(s) shall be appointed by BoD
1(2)(c) approved by the shareholders in the Annual General √
Meeting (AGM)
The post of independent director(s) cannot remain vacant
1(2)(d) √
for more than 90 (ninety) days
The tenure of office of an independent director shall be for
1(2)(e) a period of 3 (three) years, which may be extended for 1 √
(one) term only.
1(3) Qualification of Independent Director
Independent director shall be a knowledgeable individual
with integrity who is able to ensure compliance with
1(3)(a) √
financial, regulatory and corporate laws and can make
meaningful contribution to business

50 | AB Bank | Annual Report 2020

 Annexure: A
Compliance Status (“√” has been
Condition put in the appropriate column) Remarks
Title
No (if any)
Complied Not Complied
Independent Director should be a Business Leader
who is or was a promoter or director of an unlisted
company having minimum paid-up capital of Tk 100.00
1(3)(b)(i) Not Applicable
million or any listed company or a member of any national
or international chamber of commerce or business
association; or
Independent Director should be a Corporate Leader
who is or was a top level executive not lower than Chief
Executive Officer or Managing Director or Deputy
Managing Director or Chief Financial Officer or Head of
1(3)(b)(ii) Finance or Accounts or Company Secretary or Head of √
Internal Audit and Compliance or Head of Legal Service
or a candidate with equivalent position of an unlisted
company having minimum paid-up capital of Tk. 100.00
million or of a listed company; or
Independent Director should be a Former official
of government or statutory or autonomous or regulatory
body in the position not below 5th Grade of the national
1(3)(b)(iii) Not Applicable
pay scale, who has at least educational background of
bachelor degree in economics or commerce or business
or Law; or
Independent Director should be a University Teacher who
1(3)(b)(iv) has educational background in Economics or Commerce Not Applicable
or Business Studies or Law
Independent Director should be a Professional who
is or was an advocate practicing at least in the High Court
Division of Bangladesh Supreme Court or a Chartered
Accountant or Cost and Management Accountant or
1(3)(b)(v) Not Applicable
Chartered Financial Analyst or Chartered Certified
Accountant or Certified Public Accountant or Chartered
Management Accountant or Chartered Secretary or
equivalent qualification
The independent director shall have at least 10 (ten)
1(3)(c) √
years of experiences in any field mentioned in clause (b)
In special cases the above qualifications may be relaxed
1(3)(d) Not Applicable
subject to prior approval of Commission
1(4) Duality of Chairperson of the Board of Directors and Managing Director or Chief Executive Officer
The positions of the Chairperson of the Board and the
Managing Director (MD) and/or Chief Executive Officer
1(4)(a) √
(CEO) of the company shall be filled by different
individuals
The Managing Director (MD) and/or Chief Executive
1(4)(b) Officer (CEO) of a listed company shall not hold the same √
position in another listed company
The Chairperson of the Board shall be elected from among
1(4)(c) √
the non-executive directors of the company
The Board shall clearly define respective roles
1(4)(d) and responsibilities of the Chairperson and the √
Managing Director and/or Chief Executive Officer
In the absence of the Chairperson of the Board,
the remaining members may elect one of themselves from
1(4)(e) non- executive directors as Chairperson for that √
particular Board’s meeting; the reason of absence of the
regular Chairperson shall be duly recorded in the minutes
1(5) The Directors’ Report to Shareholders
Industry outlook and possible future developments in the
1(5)(i) √
industry
1(5)(ii) Segment-wise or product-wise performance √
Risks and concerns including internal and external risk
1(5)(iii) factors, threat to sustainability and negative impact on √
environment, if any
Discussion on interest
A discussion on Cost of Goods sold, Gross Profit Margin
1(5)(iv) √ income, expense and
and Net Profit Margin
net profit provided.

AB Bank | Annual Report 2020 | 51

 Annexure: A
Compliance Status (“√” has been
Condition put in the appropriate column) Remarks
Title
No (if any)
Complied Not Complied
1(5)(v) Discussion on continuity of any Extra-Ordinary gain or loss Not Applicable
A detailed discussion on related party transactions along with
a statement showing amount, nature of related party, nature
1(5)(vi) √
of transactions and basis of transactions of all related party
transactions
Utilization of proceeds from public issues, rights issues and/or
1(5)(vii) Not Applicable
through any other instrument
An explanation if the financial results deteriorate after the
1(5)(viii) company goes for Initial Public Offering (IPO), Repeat Public Not Applicable
Offering (RPO)( Rights Share Offer, Direct Listing, etc
If significant variance occurs between Quarterly Financial
1(5)(ix) performance and Annual Financial Statements, the √
management shall explain about the variance
1(5)(x) Remuneration to directors including independent directors √
The financial statements present fairly its state of affairs, the
1(5)(xi) √
result of its operations, cash flows and changes in equity
1(5)(xii) Proper books of account have been maintained √
A statement that appropriate accounting policies have been
consistently applied in preparation of the financial statements
1(5)(xiii) √
and that the accounting estimates are based on reasonable
and prudent judgment
A statement that International Accounting Standards (IAS)/
International Financial Reporting Standard (IFRS), as
1(5)(xiv) applicable in Bangladesh, have been followed in preparation √
of the financial statements and any departure there-from has
been adequately disclosed
The system of Internal control is sound in design and has
1(5)(xv) √
been effectively implemented and monitored
Minority shareholders have been protected from abusive
actions by, or in the interest of, controlling shareholders
1(5)(xvi) √
acting either directly or indirectly and have effective means
of redress
1(5)(xvii) Going Concern (ability to continue as going concern) √
Highlight and explain significant deviations from the last year’s
1(5)(xviii) √
operating results
Key operating and financial data of at least preceding 5(five)
1(5)(xix) √
years shall be summarized
1(5)(xx) Reason for non-declaration of Dividend Not Applicable
Board’s statement to the effect that no bonus share or stock
1(5)(xxi) Not Applicable
dividend has been or shall be declared as interim dividend
The total number of Board meetings held during the year and
1(5)(xxii) √
attendance by each director
A report on the pattern of shareholding disclosing the aggregate number of shares (along with name-wise
1(5)(xxiii)
details where stated below) held by
Parent or Subsidiary or Associated Companies and other
1(5)(xxiii)(a) √
related parties
Directors, Chief Executive Officer, Company Secretary,
1(5)(xxiii)(b) Chief Financial Officer, Head of Internal Audit and Compliance √
and their spouses and minor children
Executives Explanation: For the purpose of this clause, the
expression “Executive” means top 5 (five) salaried employees
1(5)(xxiii)(c) of the company, other than the Directors, Chief Executive √
Officer, Company Secretary, Chief Financial Officer and Head
of Internal Audit & Compliance.
Shareholders holding ten percent (10%) or more voting
1(5)(xxiii)(d) √ Nil
interest in the company (name wise details);
1(5) (xxiv) The appointment or reappointment of a director, a disclosure on the following information to the shareholders
1(5)(xxiv)(a) A brief resume of the director √
1(5) (xxiv)(b) Nature of his or her expertise in specific functional areas √

52 | AB Bank | Annual Report 2020

 Annexure: A
Compliance Status (“√” has been Remarks
Condition put in the appropriate column)
Title
No
Complied Not Complied (if any)

Names of companies in which the person also holds the

1(5)(xxiv)(c) directorship and the membership of committees of the √
Board
A Management’s Discussion and Analysis signed by CEO or MD presenting detailed analysis of the
1(5) (xxv) company’s position and operations along with a brief discussion of changes in the financial statements,
among others, focusing on
Accounting policies and estimation for preparation of
1(5) (xxv)(a) √
financial statements
Changes in accounting policies and estimation, if any,
clearly describing the effect on financial performance
1(5) (xxv)(b) √
or results and financial position as well as cash flows in
absolute figure for such changes
Comparative analysis (including effects of inflation)
of financial performance or results and financial position
1(5) (xxv)(c) √
as well as cash flows for current financial year with
immediate preceding five years explaining reasons thereof
Compare such financial performance or results and
1(5 )(xxv)(d) financial position as well as cash flows with the peer √
industry scenario

Briefly explain the financial and economic scenario of

1(5) (xxv)(e) √
the country and the globe

Risks and concerns issues related to the financial

1(5) (xxv)(f) statements, explaining such risk and concerns mitigation √
plan of the company
Future plan or projection or forecast for company’s
operation, performance and financial position, with
1(5) (xxv)(g) √
justification thereof, i.e., actual position shall be explained
to the shareholders in the next AGM
Declaration or certification by the CEO and the CFO to
1(5) (xxvi) the Board as required under condition No. 3(3) disclosed √
as per Annexure-A
The report as well as certificate regarding compliance
1(5 )(xxvii) of conditions of this Code as required under condition √
No.9 disclosed as per Annexure-B and Annexure-C
The company conducted its Board meetings and record
the minutes of the meetings as well as keep required books
and records in line with the provisions of the relevant
1(6) Bangladesh Secretarial Standards (BSS) as adopted by the √
Institute of Chartered Secretaries of Bangladesh (ICSB) in
so far as those standards are not inconsistent with any
condition of this Code
1(7) Code of Conduct for the Chairperson, other Board members and Chief Executive Officer
The Board laid down a code of conduct, based on the Clause#5 of BRPD
recommendation of the Nomination and Remuneration Circular no. 11 dated
1(7)(a) Committee (NRC) at condition No( 6, for the Chairperson - October 27, 2013
of the Board, other board members and Chief Executive issued by Bangladesh
Officer of the company Bank does not
permit any Bank in
Bangladesh to form
The code of conduct as determined by the NRC posted any other Committee
on the website of the company including, among except three
others, prudent conduct and behavior, confidentiality, committees namely,
1(7)(b) conflict of interest, compliance with laws, rules and - Executive Committee,
regulations, prohibition of insider trading, relationship Audit Committee and
with environment, employees, customers and suppliers Risk Management
and independency C o m m i t t e e .
Accordingly, the Bank
has not formed NRC.
2 Governance of Board of Directors of Subsidiary Company

AB Bank | Annual Report 2020 | 53

 Annexure: A
Compliance Status (“√” has been
Condition put in the appropriate column) Remarks
Title
No (if any)
Complied Not Complied
Provisions relating to the composition of the Board of
2(a) the holding company made applicable to the composition √
of the Board of the subsidiary company

At least 1 (one) independent director on the Board of

2(b) the holding company shall be a director on the Board √
of the subsidiary company

The minutes of the Board meeting of the subsidiary

2(c) company placed for review at the following Board meeting √
of the holding company

The minutes of the respective Board meeting of the holding

2(d) company stated that they have reviewed the affairs of the √
subsidiary company also

The Audit Committee of the holding company also

2(e) reviewed the financial statements, in particular the √
investments made by the subsidiary company
Managing Director (MD) or Chief Executive Officer (CEO), Chief Financial Officer (CFO), Head of Internal
3
Audit and Compliance (HIAC) and Company Secretary (CS)
3(1) Appointment
The Board appointed a Managing Director (MD) or
Chief Executive Officer (CEO), a Company Secretary (CS),
3(1)(a) √
a Chief Financial Officer (CFO) and a Head of Internal
Audit and Compliance (HIAC)
The positions of the Managing Director (MD)
or Chief Executive Officer (CEO), Company Secretary
3(1)(b) (CS), Chief Financial Officer (CFO) and Head of √
Internal Audit and Compliance (HIAC) filled by different
individuals
The MD or CEO, CS, CFO and HIAC of a listed
3(1)(c) company shall not hold any executive position in any other √
company at the same time
The Board clearly defined respective roles, responsibilities
3(1) (d) √
and duties of the CFO, the HIAC and the CS
The MD or CEO, CS, CFO and HIAC not removed
from their position without approval of the Board as
3(1)(e) √
well as immediate dissemination to the Commission
and stock exchange(s)
The MD or CEO, CS, CFO and HIAC of the company
3(2) √
attended the meetings of the Board
3(3) Duties of Managing Director (MD) or Chief Executive Officer (CEO) and Chief Financial Officer (CFO)
The MD or CEO and CFO certified to the Board that they
have reviewed financial statements for the year and that to
the best of their knowledge and belief these statements
3(3)(a)(i) √
do not contain any materially untrue statement or
omit any material fact or contain statements that might
be misleading
These statements together presented a true and fair view
3(3) (a)(ii) of the company’s affairs and are in compliance with √
existing accounting standards and applicable laws
The MD or CEO and CFO also certified that there are, to
the best of knowledge and belief, no transactions entered
3(3)(b) into by the company during the year which are fraudulent, √
illegal or in violation of the code of conduct for the
company’s Board or its members
The certification of the MD or CEO and CFO disclosed in
3(3) (c) √
the Annual Report

54 | AB Bank | Annual Report 2020

 Annexure: A
Compliance Status (“√” has been
Condition put in the appropriate column) Remarks
Title
No (if any)
Complied Not Complied
4 Board of Directors Committee
4(i) Audit Committee √
Clause#5 of BRPD
Circular no. 11 dated
October 27, 2013 issued
by Bangladesh Bank
does not permit any
Bank in Bangladesh
to form any other
4(ii) Nomination and Remuneration Committee - Committee except three
committees namely,
Executive Committee,
Audit Committee and
Risk Management
Committee. Accordingly,
the Bank has not formed
NRC.
5 Audit Committee
5(1) Responsibility to the Board of Directors
5(1)(a) The Audit Committee is the sub-committee of the BoD √
The Audit Committee assisted the BoD in ensuring that
the financial statements reflected true and fair view of the
5(1)(b) √
state of affairs of the company and in ensuring a good
monitoring system within the business
The Audit Committee is responsible to the BoD; The duties
5(1)(c) √
of the Audit Committee is clearly set forth in writing
5(2) Constitution of the Audit Committee
5(2)(a) The Audit Committee is composed of at least 3 members √
The BoD appointed members of the Audit Committee who
5(2)(b) is the directors of the company and included at least 1 √
(one) Independent Director
All members of the audit committee is “financially literate”
5(2)(c) and at least 1 (one) member has accounting or related √
financial management experience
When the term of service of the Committee members
expires or there is any circumstance causing any
Committee member to be unable to hold office before
expiration of the term of service, thus making the number
of the Committee members to be lower than the prescribed
5(2)(d) √
number of 3 (three) persons, the Board shall appoint the
new Committee member to fill up the vacancy immediately
or not later than 1 (one) month from the date of vacancy
in the Committee to ensure continuity of the performance
of work of the Audit Committee
The Company Secretary acted as the secretary of the Audit
5(2)(e) √
Committee
The quorum of the Audit Committee meeting is not
5(2)(f) √
constituted without at least 1(one) independent director
5(3) Chairman of the Audit Committee
The BoD selected the Chairman of the Audit Committee,
5(3)(a) √
who is an Independent Director
In the absence of the Chairperson of the Audit
Committee, the remaining members may elect one of
themselves as Chairperson for that particular meeting,
5(3)(b) in that case there shall be no problem of constituting a √
quorum as required under condition No. 5(4)(b) and the
reason of absence of the regular Chairperson shall be duly
recorded in the minutes

AB Bank | Annual Report 2020 | 55

 Annexure: A
Compliance Status (“√” has been
Condition put in the appropriate column) Remarks
Title
No (if any)
Complied Not Complied
Chairman of the audit committee remained present in the
5(3)(c) √
AGM
5(4) Meeting of the Audit Committee
The Audit Committee conducted at least its four meetings
5(4)(a) √
in a financial year
The quorum of the meeting of the Audit Committee is
constituted in presence of either two members or two-third
5(4)(b) of the members of the Audit Committee, whichever √
is higher, where presence of an independent director is
a must
5(5) Role of Audit Committee
5(5)(a) Oversee the financial reporting process √
5(5)(b) Monitor choice of accounting policies and principles √
5(5)(c) Monitor Internal Control Risk Management process √
5(5)(d) Oversee hiring and performance of external auditors √
5(5)(e) Hold meeting with the external or statutory auditors √
Review the annual financial statements before submission
5(5)(f) √
to the board for approval
Review the quarterly and half yearly financial statements
5(5)(g) √
before submission to the board for approval
5(5(h) Review the adequacy of internal audit function √
Review the Management’s Discussion and Analysis
5(5(i)) √
before disclosing in the Annual Report
Review statement of significant related party transactions
5(5)(j) √
submitted by the management
Review Management Letters/Letter of Internal Control
5(5)(k) √
weakness issued by statutory auditors
Oversee the determination of audit fees based on scope
and magnitude, level of expertise deployed and time
5(5)(l) √
required for effective audit and evaluate the performance
of external auditors
Disclosure to the Audit Committee about the uses/
applications of IPO funds by major category (capital
expenditure, sales and marketing expenses, working
5(5)(m) capital, etc), on a quarterly basis, as a part of their Not Applicable
quarterly declaration of financial results( Further, on an
annual basis, shall prepare a statement of funds utilized
for the purposes other than those stated in the prospectus
5(6) Reporting of the Audit Committee
5(6)(a) Reporting to the Board of Directors
5(6(a)(i) Reporting to BoD on the activities of the Audit Committee √
No such incidence
5(6)(a)(ii)(a) Reporting to BoD on conflicts of interests
arose
Reporting to BoD on any fraud or irregularity or material No such incidence
5(6)(a)(ii)(b)
defect in the internal control system arose
No such incidence
5(6)(a)(ii)(c) Reporting to BoD on suspected infringement of laws
arose
No such incidence
5(6)(a)(ii)(d) Reporting to BoD on any other matter
arose
Reporting to BSEC (if any material impact on the financial
No such incidence
5(6)(b) condition & results of operation, unreasonably ignored by
arose
the management)
Reporting to the Shareholders of Audit Committee
5(7) activities, which shall be signed by the Chairman and √
disclosed in the Annual Report
6 Nomination and Remuneration Committee (NRC)

56 | AB Bank | Annual Report 2020

 Annexure: A
Compliance Status (“√” has been
Condition put in the appropriate column) Remarks
Title
No (if any)
Complied Not Complied
6(1) Responsibility to the Board of Directors
The company has a Nomination and Remuneration Clause#5 of BRPD
6(1)(a) - Circular no. 11 dated
Committee (NRC) as a sub-committee of the Board
October 27, 2013
The NRC assisted the Board in formulation of the nomination issued by Bangladesh
criteria or policy for determining qualifications, Bank does not
positive attributes, experiences and independence of permit any Bank in
6(1)(b) -
directors and top level executive as well as a policy for Bangladesh to form
formal process of considering remuneration of directors, any other Committee
top level executive except three
committees namely,
Executive Committee,
The Terms of Reference (ToR) of the NRC is clearly set Audit Committee and
6(1)(c) forth in writing covering the areas stated at the - Risk Management
condition No( 6(5(b) C o m m i t t e e .
Accordingly, the Bank
has not formed NRC.
6(2) Constitution of the NRC
The Committee is comprised of at least three members
6(2)(a) -
including an independent director
All members of the Committee is non-executive
6(2(b) -
directors
Members of the Committee is nominated and appointed
6(2)(c) -
by the Board
The Board has authority to remove and appoint any Clause#5 of BRPD
6(2)(d) -
member of the Committee Circular no. 11 dated
In case of death, resignation, disqualification, or October 27, 2013
removal of any member of the Committee or in any issued by Bangladesh
6(2)(e) other cases of vacancies, the board has filled the - Bank does not
vacancy within 180 (one hundred eighty) days of permit any Bank in
occurring such vacancy in the Committee Bangladesh to form
any other Committee
The Chairperson of the Committee may appoint or co- except three
opt any external expert and/or member(s) of staff to the committees namely,
Committee as advisor who shall be non-voting member, Executive Committee,
6(2)(f) -
if the Chairperson feels that advice or suggestion from Audit Committee and
such external expert and/or member(s) of staff shall be Risk Management
required or valuable for the Committee C o m m i t t e e .
The company secretary acted as the secretary of Accordingly, the Bank
6(2)(g) - has not formed NRC.
the Committee
The quorum of the NRC meeting is not constituted without
6(2)(h) -
attendance of at least an independent director
No member of the NRC has received, either directly
or indirectly, any remuneration for any advisory or
6(2)(i) -
consultancy role or otherwise, other than Director’s
fees or honorarium from the company
6(3) Chairperson of the NRC
The Board has selected 1 (one) member of the Clause#5 of BRPD
6(3(a) NRC to be Chairperson of the Committee, who is an - Circular no. 11 dated
independent director October 27, 2013
issued by Bangladesh
In the absence of the Chairperson of the NRC, the remaining Bank does not
members elected one of themselves as Chairperson for permit any Bank in
6(3)(b) - Bangladesh to form
that particular meeting, the reason of absence of the
regular Chairperson is duly recorded in the minutes any other Committee
except three
committees namely,
Executive Committee,
Audit Committee and
The Chairperson of the NRC attended the annual general
6(3)(c) - Risk Management
meeting (AGM) to answer the queries of the shareholders
C o m m i t t e e .
Accordingly, the Bank
has not formed NRC.

AB Bank | Annual Report 2020 | 57

 Annexure: A
Compliance Status (“√” has been
Condition put in the appropriate column) Remarks
Title
No (if any)
Complied Not Complied
6(4) Meeting of the NRC
The NRC has conducted at least one meeting in a Clause#5 of BRPD
6(4)(a) - Circular no. 11 dated
financial year
October 27, 2013
The Chairperson of the NRC may convene any issued by Bangladesh
6(4)(b) emergency meeting upon request by any member of the - Bank does not
NRC; permit any Bank in
Bangladesh to form
The quorum of the meeting of the NRC is constituted in any other Committee
presence of either two members or two third of except three
6(4)(c) the members of the Committee, whichever is higher, - committees namely,
where presence of an independent director is must as Executive Committee,
required under condition No( 6(2)(h) Audit Committee and
Risk Management
The proceedings of each meeting of the NRC is duly
C o m m i t t e e .
6(4)(d) recorded in the minutes and such minutes is confirmed in - Accordingly, the Bank
the next meeting of the NRC has not formed NRC.
6(5) Role of the NRC
Clause#5 of BRPD
Circular no. 11 dated
October 27, 2013
issued by Bangladesh
Bank does not
permit any Bank in
Bangladesh to form
NRC is independent and responsible or accountable to the any other Committee
6(5)(a) -
Board and to the shareholders except three
committees namely,
Executive Committee,
Audit Committee and
Risk Management
C o m m i t t e e .
Accordingly, the Bank
has not formed NRC.
6(5)(b) NRC oversees, among others, the following matters and make report with recommendation to the Board
Formulating the criteria for determining qualifications,
positive attributes and independence of a director and
6(5)(b)(i) recommend a policy to the Board, relating to the -
remuneration of the directors, top level executive,
considering the following:
The level and composition of remuneration is reasonable
6(5)(b)(i) (a) and sufficient to attract, retain and motivate suitable - Clause#5 of BRPD
directors to run the company successfully Circular no. 11 dated
The relationship of remuneration to performance is clear October 27, 2013
6(5)(b)(i) (b) - issued by Bangladesh
and meets appropriate performance benchmarks
Bank does not
Remuneration to directors, top level executive involves permit any Bank in
a balance between fixed and incentive pay reflecting Bangladesh to form
6(5)(b)(i) (c) -
short and long-term performance objectives appropriate any other Committee
to the working of the company and its goals except three
Devising a policy on Board’s diversity taking into committees namely,
6(5)(b)(ii) consideration age, gender, experience, ethnicity, - Executive Committee,
educational background and nationality Audit Committee and
Identifying persons who are qualified to become Risk Management
directors and who may be appointed in top level C o m m i t t e e .
6(5(b)(iii) executive position in accordance with the criteria laid - Accordingly, the Bank
down, and recommend their appointment and removal to has not formed NRC.
the Board
Formulating the criteria for evaluation of performance
6(5)(b)(iv) -
of independent directors and the Board
Identifying the company’s needs for employees at
6(5)(b)(v) different levels and determine their selection, transfer -
or replacement and promotion criteria

58 | AB Bank | Annual Report 2020

 Annexure: A
Compliance Status (“√” has been
Condition put in the appropriate column) Remarks
Title
No (if any)
Complied Not Complied
Developing, recommending and reviewing annually the
6(5)(b)(vi) -
company’s human resources and training policies
The company has disclosed the nomination and
6(5(c) remuneration policy and the evaluation criteria and activities -
of NRC during the year at a glance in its annual report
7 External / Statutory Auditors
Non-engagement in appraisal or valuation services or
7(1)(i) √
fairness opinions
Non-engagement in designing and implementation of
7(1(ii) √
Financial Information System
Non-engagement in Book Keeping or other services related
7(1(iii) √
to the accounting records or financial statements
7(1)(iv) Non-engagement in Broker-dealer services √
7(1)(v) Non-engagement in actuarial services √
7(1)(vi) Non-engagement in internal audit services √
Non-engagement in any other services that the Audit
7(1)(vii) √
Committee determines
Non-engagement in audit or certification services on
7(1)(viii) compliance of corporate governance as required under √
condition No. 9(1); and
Non-engagement in any other service that creates conflict of
7(1)(ix) √
interest
No partner or employees of the external audit firms possesses
7(2) any share of the company during the tenure of their √
assignment

Representative of external or statutory auditors remained

present in the Shareholders’ Meeting (Annual General Meeting
7(3) √
or Extraordinary General Meeting) to answer the queries of
the shareholders
8 Maintaining a website by the Company
The company has an official website linked with the
8(1) √
website of the stock exchange
The company kept the website functional from the date of
8(2) √
listing
The company made available the detailed disclosures on
8(3) its website as required under the listing regulations of the √
concerned stock exchange(s)
9 Reporting and Compliance of Corporate Governance
Obtaining certificate from a practicing Professional Accountant/
Secretary regarding compliance of conditions of Corporate
9(1) √
Governance Guidelines of the BSEC and include in the Annual
Report

The professional will provide the certificate on compliance

9(2) of this Corporate Governance Code shall be appointed by √
the shareholders in the annual general meeting

Directors statement in the directors’ report whether the

9(3) √
company has complied with these conditions

AB Bank | Annual Report 2020 | 59

 DIVIDEND DISTRIBUTION POLICY

Preface meeting specially called for consideration/adoption of

its quarterly financial statements and for declaration of
This Dividend Distribution Policy of AB Bank Ltd. is any entitlement (interim dividend) for the shareholders
framed and approved by Board of Directors of the Bank before 3 (three) working days of holding such meeting:
in compliance with Bangladesh Securities and Exchange
Commission’s Directive No. BSEC/CMRRCD/2021-386/3- Provided that no stock/bonus entitlement shall be
dated, 14 January 2021. declared as interim dividend and Provided that the
decision about recommending dividend and entitlement
The Policy is aimed to set out the criteria and parameters, for such dividend cannot be changed.
which the board of directors of the Bank shall take
into consideration at the time of recommendation for
dividend. Annual Dividend/ Final Dividend
The Bank shall notify the Exchange and the Commission
The Board of Directors may declare interim dividend and in advance the date and time of its board of directors’
recommend final dividend complying the Companies Act, meeting specially called for consideration/adoption of its
1994; the Bank Company Act, 1991 and provisions of all annual audited financial statements and for declaration
Rules, Regulations, Notifications, Orders, Guidelines, etc. of any entitlement for the shareholders before 7 (seven)
in force or to be enforced and issued or to be issued from days of holding such meeting.
time to time by Regulatory Authorities.
Effective Date The Board of Directors while considering/adopting annual
audited financial statements shall, in the same Board of
This Dividend Distribution Policy is applicable with effect Directors’ meeting also fix the date of the relevant annual
from 27th May 2021. general meeting and take specific decisions with regard to
(a) recommending or not recommending dividend for the
Parameters to be considered for declaration shareholders on the basis of said financial statements;
of dividend: and (b) the shareholders who shall be entitled to such
dividend, if recommended:
The Board of Directors of the Bank will consider
the following internal or external parameters while Provided that the decision about recommending or
recommending dividend: not recommending dividend and entitlement for such
1. Financial performance and growth opportunities of dividend, if recommended, cannot be changed prior to
the Bank. holding of the annual general meeting and no dividend
2. Positive impacts on capital market shall be paid other than out of profits of the year or any
other undistributed profits.
3. Dividend payout trend of the Bank
4. Capital to Risk Weighted Assets Ratio (CRAR) Dividend is required to approve by the shareholders
position of the Bank at an Annual General Meeting (AGM) on the basis of
5. Tax implication recommendation of the Board. All requisite approvals and
clearances, where necessary as applicable, are obtained
6. Economic factors before recommendation and approval of dividend.
7. Any other Regulatory requirements
For fixing the dividend payout ratio, the Board needs Entitlement to Dividend
to consider the operating results of the Bank and the Only the shareholders of the Bank whose names appear
Shareholders return as well. Dividend should be paid out in the depository register maintained with Central
of Divisible profit of the Bank. If the eligibility criteria for Depository Bangladesh Ltd and or members register of
recommendation of dividend has not been met by the the Bank. on the record date fixed by the Bank shall be
Bank or any threshold has been fixed by the Regulators entitled to receive the dividend.
or any restriction has been imposed by the Regulatory
Authorities; the Board of Directors of the Bank may Payment of Dividend
recommend dividend within the threshold or may not
recommend any dividend according to restrictions. The Bank should maintain detailed information of
Beneficiary Owners (BO) account, bank account, mobile
phone number, email and address of the shareholder
Procedure of declaration/recommendation
as maintained with the Depository Participants (DP) by
of dividend itself or by appointing an agent for the purpose of proper
Interim Dividend distribution of dividend. These information shall be kept
confidential.
The Bank shall notify the Exchange and the Commission
in advance the date and time of its board of directors’
60 | AB Bank | Annual Report 2020
Annual Dividend shall be paid off within 30 days from (v) The Bank shall pay off cash dividend to non-resident
the date of its declaration in the Annual General Meeting sponsor, director, shareholder, unit holder or foreign
or General Meeting of the Bank, as the case may be; portfolio investor (FPI) through the security custodian
and Interim Dividend shall be paid off within 30 days of in compliance with the rules or regulations in this
record date. Provided, however, that the period of 30 regard;
days shall not apply in case where- (i) there is a dispute
regarding to right to receipt the payment; or (ii) the (vi) The bank, immediately after disbursement of cash
dividend has been fully adjusted by the company against dividend subject to deduction of Advance Income
any sum due to it from the shareholders; or (iii) there is Tax or other tax, if applicable, and also after
any restraint order by any court of law. issuance of a certificate of tax deducted at source, if
applicable, shall intimate to the shareholder or unit
a) Cash dividend holder through a short message service (SMS) to the
Cash dividend shall be distributed in the following mobile number or email address as provided in the
manner and procedures, namely:- BO account or as provided by the shareholder or unit
holder;
(i) Within 10 (ten) days of declaration of cash dividend
by the board of director of the Bank an amount (vii)
The Bank shall maintain detailed information of
equivalent to the declared cash dividend payable for unpaid or unclaimed dividend and rationale thereof,
the concerned year shall be kept in a separate bank as per BO account number-wise or mane-wise or
account of the Bank dedicated for this purpose; folio number-wise of the shareholder or unit holder;
and shall also disclose the summary of aforesaid
(ii) The Bank shall pay off cash dividend directly to the
information in the manner report and shall also report
bank account of the entitled shareholder or unit
in the statements of financial position (Quarterly/
holder as available in the BO Account maintained
with the depository participant (DP), or the bank annually) as a separate line item ‘Unclaimed Dividend
account as provided by the shareholder or unit Account’:
holder in paper form, through Bangladesh Electronic Provided that the Bank shall publish the year-wise
Funds Transfer Network (BEFTN): summary of its unpaid or unclaimed dividend in the
Provided that the Bank may pay off such cash website:
dividend through bank transfer or any electronic Provided further that any unpaid or unclaimed cash
payment system as recognized by the Bangladesh dividend including accrued interest (after adjustment
Bank, if not possible to pay off through BEFTN; of bank charge, if any) thereon, if remains, shall be
(iii) The bank, upon receiving the claim on cash dividend transferred to a separate bank account of the Bank
from a stock broker or a merchant banker or a as maintained for this purpose within 1 (one) year
portfolio manager for the margin client or customer from the date of declaration or record date, as the
who has debit balance or margin loan, or as per case may be.
intention of the client of stock broker or merchant
banker or portfolio manager, shall pay off such b) Stock dividend or bonus shares
cash dividend to the Consolidated Customers’
The Bank shall credit stock dividend or bonus shares
Bank Account (CCBA) of the stock broker or to the
directly to the BO Account or issue the bonus share
separate bank account of the merchant banker or
portfolio manager through BEFTN: certificate of the entitled shareholder, as applicable,
within 30 (thirty) days of declaration in Annual General
Provided that if the stock broker or merchant banker or Meeting/General Meeting or record date, as the case
portfolio manager fails to provide detailed information may be, subject to clearance of the exchange(s) and the
(e.g., BO account number, bank account number, Central Depository Bangladesh Limited (CDBL).
intention, etc. of the client or customer including CCBA to
the Bank for such claim, then the Bank shall immediately Compliance of law
inform Bangladesh Securities & Exchange Commission. The Bank shall comply with all laws, rules, regulations
and other legal requirements having force of law for
(iv) The bank, in case of non-availability of bank account
information or not possible to distribute cash dividend recommending dividend, be it cash dividend or stock
through BEFTN or any electronic payment system, dividend, including compliance of Regulation 46 of
shall issue cash dividend warrant and shall end it by wWcwRUwi (e¨envwiK) cÖweavbgvjv, 2003 for issuance of stock
registered post to the shareholder or unit holder; dividend or bonus shares.

AB Bank | Annual Report 2020 | 61

 The procedures to follow for ascertaining (three) years from the date of declaration or record
rightful ownership of dividend date, as the case may be, shall be transferred by the
Bank to the Fund as directed or prescribed by the
The Bank shall follow the following procedures for Commission under the law of the country:
ensuring the rightful ownership:
Provided that the Bank shall provide detailed
(i) The Bank shall send at least 3 (three) reminders to information to the manager of the Fund during
the entitled shareholders; transfer of cash dividend as directed or prescribed
by the Commission under the law of the country:
(ii) The Bank shall maintain detail information of unpaid
or unclaimed dividend and rationale thereof. Unpaid Provided further that if any shareholder or unit
or unclaimed cash dividend including accrued holder claims his cash dividend after transfer of
interest (after adjustment of bank charge, if any) such dividend to the Fund, within 15 (fifteen) days
thereon, if remain, shall be transferred to a separate of receiving such claim, the Bank shall, after proper
bank account named ‘Unclaimed Dividend Account’ verification of the claim, recommend to the manager
within one year from the date of approval. of the Fund to pay off such dividend from the Fund
(iii) In case of stock dividend or bonus shares, the and the manager of the Fund shall pay off such cash
Bank shall maintain a Suspense BO Account for dividend to the claimant in accordance with the
undistributed or unclaimed stock divided or bonus provisions and procedures as directed or prescribed
shares. The said suspense BO Account shall be by the Commission under the law of the country.
held under Block Module and such undistributed
Provided however that the claim becomes barred by
or unclaimed stock dividend or bonus shares shall
the law of land in force, the Bank shall claim back
not be transferred in any manner except for the
the said cash dividend from the fund upon forfeiture
purpose of allotting the bonus shares as and when
the allottee approaches to the bank: of the same.
(iii) If any stock dividend or bonus shares remains
Provided that any corporate benefit in terms of unclaimed or unsettled including corporate benefit
shares accrued on such undistributed or unclaimed in terms of bonus shares thereon for a period of 3
stock dividend or bonus shares shall be credited to (three) years from the date of declaration or record
the said Suspense BO Account. date, as the case may be, shall be transferred in
(iv) The Bank shall, upon receiving application from the dematerialized form to the BO Account of the Fund
allottee and/or after proper verification of identity as mentioned in the preceding clause.
and his entitlement, credit the cash dividend/bonus
shares lying with the said Unclaimed Dividend Provided that the Bank shall provide detailed
Account in favour of the shareholder or the said information to the manager of the Fund during
Suspense BO Account to the BO Account of the transfer of stock dividend or bonus shares as directed
allottee, as the case may be, or issue bonus shares or prescribed by the Commission under the law of
to the allottee, as applicable, within 15 (fifteen) days the country:
of receiving application with an intimation to the
Provided further that if any shareholder claims his
Commission and the exchange(s);
stock dividend or bonus shares after transfer of such
(v) Any voting rights on such undistributed or unclaimed dividend or bonus shares to the BO Account of the
stock dividend or bonus shares shall remain Fund, within 15 (fifteen) days of receiving such claim,
suspended till the rightful ownership claim of the the Bank shall, after proper verification of the claim,
shareholder is established with finality. recommend to the manager of the Fund to pay off
or transfer such stock dividend or bonus shares from
the BO Account of the Fund and the manager of the
Unpaid/Unclaimed dividend Fund shall pay off or transfer such stock dividend
(i) The Bank must not forfeit any unclaimed cash or or bonus shares to the claimant’s BO Account in
stock dividend till the claim becomes barred by the accordance with the provisions and procedures as
law of land in force. Unclaimed dividend is paid off as directed or prescribed by the Commission under the
per procedure set by the Bangladesh Securities and law of the country.
Exchange Commission and the Stock Exchanges.
Provided however that after the claim becomes
(ii) If any cash dividend remains unpaid or unclaimed or barred by the law of land in force, the Bank shall
unsettled including accrued interest (after adjustment claim back the said stock dividend or bonus shares
of bank charge, if any) thereon for a period of 3 from the fund upon forfeiture of the same.

62 | AB Bank | Annual Report 2020

Maintenance of record.
The Bank, by itself or by appointing an agent, shall regarding the part of this Policy adopted as per direction
maintain detailed information of BO Account, bank of Bangladesh Securities & Exchange Commission under
account, mobile phone number, email and address of Directive No. BSEC/CMRRCD/2021-386/3- dated, 14
the shareholder or unit holder for the purpose of proper January 2021; and the decision of Bangladesh Securities
distribution of cash dividend or stock dividend: & Exchange Commission shall be final and binding on the
Bank.
Provided that the Bank and its agent shall keep
confidentiality of information. Any officer of the Bank Compliance Report
shall personally be liable to indemnify the Bank for any
loss or damage the Bank sustains due to breach of The Bank shall submit a compliance report to Bangladesh
confidentiality of information of the shareholder or unit Securities & Exchange Commission as well as Stock
holder in this regard. Exchanges in the specified format prescribed under
Directive No. BSEC/CMRRCD/2021-386/3- dated, 14
January 2021.
Updating Record
The Bank shall update its record upon receiving any Amendment
information regarding the BO Account, bank account,
mobile phone number, email and address of the The board of directors shall review an update, if needed,
shareholder or unit holder from CDBL (Central Depository once in a year before each Annual General Meeting.
Bangladesh Ltd.) or its DP (Depository Participants) for
the purpose of proper distribution cash dividend or stock Disclosure
dividend and other compliances: The policy will be available on the Bank’s website and will
also be disclosed in the Bank’s Annual Report.
Provided that in case of holding of paper share, the
issuer shall update the information as above.

Clarification
The Bank shall seek clarification from Bangladesh
Securities & Exchange Commission in the event of any
confusion or difference of opinion on any matter whatsoever

AB Bank | Annual Report 2020 | 63

 DIRECTORS’ STATEMENT OF RESPONSIBILITIES

Bismillahir Rahmanir Rahim

Dear Fellow Shareholders,
The Directors are required to present the Annual reliability, timeliness, completeness and compliance
Report together with Directors’ Report and the with applicable laws and regulations.
Financial Statements in accordance with the
Companies Act, 1994, Rules and Regulations of the Board of Directors of AB Bank Limited meets
Institute of Chartered Accountants of Bangladesh regularly to consider Bank’s policies, procedures,
(ICAB), Rules and Regulations of Bangladesh risk management and business plan among others.
Bank (BB), Bangladesh Securities and Exchange During the year 2020, seventeen (17) meetings of
Commission (BSEC) Rules, 1987, the Dhaka Stock the Board of Directors took place. This report should
Exchange (Listing) Regulations, 2015, Chittagong be read in conjunction with Auditors’ Report to the
Stock Exchange (Listing) Regulations, 2015 and Shareholders of AB Bank Limited. Compliances of
BSEC’s notification on Financial Reporting and BSEC Corporate Governance Code-2018 are given
Disclosure dated June 20, 2018. separately.

The Financial Statements are required by law and Some of the information in this Annual Report
International Accounting Standards (IAS) and may contain projections or other forward-looking
International Financial Reporting Standards (IFRS) statements regarding the Bank. These statements
as adopted by ICAB to present fairly the financial are based on our expectations and assumptions.
position of the Company and the performance for Statements of such nature are not be construed as
the period. Proper accounting records should be kept guarantee of future performance. Therefore, future
that disclose with reasonable accuracy at any time results and trends may differ materially from what is
the financial position of the Company and enable in our forward-looking statements.
them to ensure that its Financial Statements comply
with the Companies Act, 1994 and Bank Company On behalf of the Board,
Act, 1991 (as amendment up to 2018).

The Directors’ report of AB Bank Limited confirm

that Directors’ Report together with the Financial
Statements in the Annual Report for the year 2020
have been prepared in compliance with laws, rules Muhammad A. (Rumee) Ali
and regulatory guidelines as per the Companies Act, Chairman
1994; The Bank Company Act, 1991 (as amendment
up to 2018), guidelines issued by Bangladesh Bank
and BSEC Corporate Governance Code No. BSEC/
CMRRCD/2006-158/207/Admin/80 dated 03 June
2018.

Board through its Audit Committee established

appropriate and adequate Internal Control System
in the Bank to attain business objectives in short-
term and sustainability in long-term. Board
acknowledges its responsibility for establishing
Internal Control Systems’ efficiency, effectiveness,

64 | AB Bank | Annual Report 2020

REPORT OF THE AUDIT COMMITTEE

Audit Committee works according to the codes • Reviewed the Management Letter issued by
issued by Bangladesh Securities and Exchange the External Auditor, Management responses
Commission and guidelines of Bangladesh Bank. The thereto and corrective measures taken by
Board set out the overall Business Plan & formulates the Bank to avoid recurrence of the lapses
Policies that the Management is responsible for mentioned therein.
implementation. The Audit Committee, on behalf • Recommended to the Board for appointment of
of the Board ensures effective implementation of Statutory Auditor of the Bank. - Reviewed the
the process and procedures set out in the Business Financial Statements of Subsidiary Companies.
Plans and Policies. The Audit Committee also reviews
• Reviewed Quarterly and Half Yearly Financial
the Internal Control administration and compliance
Statements and recommended to the Board for
status of the Bank as a whole.
adoption.
• Reviewed half yearly Self-Assessment of
Functions of the Audit Committee
AntiFraud Internal Controls (SAAFIC) Reports
The key function of the Audit Committee is to facilitate
and recommended its submission to Bangladesh
the Board to execute its oversight responsibilities.
Bank.
The main responsibilities of the Audit Committee,
• Reviewed annual ‘Health Report’ of the Bank
among others, are as below: - Review adequacy of
and recommended its submission to Bangladesh
Internal Control System. - Review Financial Reporting
Bank.
Process & Financial Statements. - Review Internal
Audit Report & External Audit Report (Management • Reviewed Comprehensive Inspection Report of
Report). - Monitor Accounting Polices & Principles, Bangladesh Bank including status of compliance
Internal Control Risk Management Process. - thereof.
Monitor Compliance Culture. - Recommendation for • Reviewed Branch Inspection Reports and Head
appointment of external auditor, - Compliance of Office functions conducted by the Department
rules and regulations, etc. of Internal Control & Compliance (DICC).

Composition of the Audit Committee Recommendation of Financial Statements

1. Shafiqul Alam - Chairman Audit Committee reviewed and examined the Annual
2. Shajir Ahmed - Member Financial Statements for the year 2020 prepared by
3. Md. Maqsudul Huq Khan - Member the Management and audited by the External Auditor
ACNABIN, Chartered Accountants, and recommended
Company Secretary acts as the Secretary of the
the same to the Board for consideration.
Audit Committee. Senior Officials of the Bank attend
the Meetings on invitation.
Acknowledgement
Meetings of the Audit Committee Audit Committee expresses its sincere thanks to the
Members of the Board and the Management of AB for
Audit Committee held 09 (nine) Meetings during the
their excellent support in carrying out the duties and
year 2020.
responsibilities of the committee during the period
During the year under review, the Audit Committee, under review.
inter alia, focused on the following activities (not an
exhaustive list):
• Reviewed the Internal Audit Plan for the year 2020.
• Reviewed the Draft Financial Statements
and following discussions with the External
Shafiqul Alam
Auditor recommended it to the Board for their
Chairman, Audit Committee
consideration.

AB Bank | Annual Report 2020 | 65

 REPORT OF THE SHARIAH SUPERVISORY COMMITTEE
FOR THE YEAR 2020
In the name of Allah, the Beneficent, the Merciful The Supervisory Committee after reviewing the
The city of the Shariah Supervisory Committee is Shariah Inspection Reports, Balance Sheet and Profit
to give independent opinion and nary guidelines & Loss Account Statement (as on the 31” December,
by observing and reviewing the activities of Islamic 2019) of Islamic banking operation of the Bank for
Banking Operation of the Bank and to make the the year 2019 gave the following opinion:
clients aware of Shariah Principles. On the other 1. In Bai Murabaha /Muajjal mode, buying and
hand, the responsibility of the Bank Management is selling are being done by ensuring physical/
to ensure that the Bank services it’s business under constructive possession of the goods.
Islamic Banking Operation in accordance with the 2. The agreements for investment and transactions
rules and principles of Islamic Shariah. entered into by Islami Banking Branch during
the period concerned have been made in
During the Pandemic Year 2020, AB Bank Shariah accordance with the Principles of Islamic
Supervisory Committee met physically and reviewed Shariah.
different operational issues including those referred
to it by the Management of the Bank and gave 3. Profit distributed to Mudaraba Depositors has
opinion and decisions related to Islamic Shariah. been made following the weightage system.
(PSR).
The important issues attended by the AB Bank 4. The officials of Islami Banking Branch are
Shariah Supervisory Committee as follows: committed to comply with the Shariah directives.
1. Reviewing the yearly Shariah Audit Report 2019 5. In 2020, Compensation Realized Fund being
of Islami Banking Branch. used for educational purpose and towards
2. Approving the Final Accounts, 2019 of Islami upholding the necessities of human mankind.
Banking Branch. To the best of our knowledge no gross violation
and lapses in the Islamic banking operations
3. Approving the Report of Shariah Supervisory of the Branch have been detected. May Allah
Committee for the year 2019 on Islamic (SWT) grant success to our sincere efforts and
Banking. bless us with His Rahmah and Barakah and
4. Reviewing the half-yearly Shariah Audit Report guide us all to His right path.
(July-December, 2019) of Islami Banking
Branch.
5. Gave opinion on ‘Islamic Banking Guideline’
provided by Bangladesh Bank.
6. Approving of Mourning news of Late M. Azizul Justice Siddiqur Rahman Miah
Huq, former Chairman of AB Bank Shariah Chairman, AB Bank Shariah Supervisory Committee
Supervisory Committee.
7. Reconstitute of Shariah Supervisory Committee.
8. Commencement of litigation process against
the Bad & Loss (BL) client resulting which
Honorable High Court passed a verdict in favor
of the Bank.
9.
Bangladesh Securities and Exchange
Commission expressed its willingness to
participate the suit as a party in favor of AB
Bank.

66 | AB Bank | Annual Report 2020

ECONOMIC IMPACT REPORT

AB Bank | Annual Report 2020 | 67

 ECONOMIC IMPACT REPORT

AB being a responsible corporate citizen and a Amount in crore Taka

dynamic financial institution has created value Source of Income 2020 % 2019 %

in line with its mission “To be the best performing Interest income 2,429 75% 2,672 84%
bank in the country”. Toward this value creation AB Investment income 646 20% 319 10%
has put in place an organizational and operational Commission, exchange and brokerage 126 4% 175 6%
framework which is based on transparent and ethical Other operating income 27 1% 7 0.2%
conduct of business. Bank has systems, processes, Total 3,228 100% 3,173 100%
and procedures to create value with appropriate risk
management (validation) system in order to ensure Distribution of Income 2020 % 2019 %

sustainable value addition to stakeholders. It has Interest paid on deposits and borrowing etc. 2,013 62% 1,885 59%

not been a case of bottom line enhancement alone Salaries and allowances 274 8% 274 9%
but creation of value conducive to socio- economic To Suppliers for providing goods and services 243 8% 208 7%
development. Charges on loan losses - 0% 111 3%

Depreciation set aside 51 2% 51 2%

Savings, Investment, production, distribution, Provision for Loan & Advances, and Others 514 16% 514 16%
consumption of goods and service, and employment
To Government as Income Tax 93 3% 114 4%
generation are essential parts of an Economic System.
To Statutory Reserve 28 1% 25 1%
As a financial intermediary Bank plays an important
To Retained Earnings 11 0.34% -8 0.25%
catalytical role in the mobilization of resources
Total 3,228 100% 3,173 100%
like saving and allocation thereof in productive
investments, consumptions and development of
trading activities locally and internationally.

Economic impact related to a bank as an institution

and ordained activities of a bank extends beyond the
boundaries of any single organization and is linked
to both environmental and social development. By
analyzing economic impact we seek to understand
how a company adds value to society. Bank’s direct
contributions to the economy would comprise of
creation of employment opportunities, collection of
taxes on behalf of the government etc. including
harnessing the savings habits among the members of
the community and improvement of socio- economic
and environmental performance in client organizations
through banking services could be considered as
indirect contributions.

Bank as an institution is woven in to the socio-

economic fabric involving numerous sector of the
society which together are identified as stakeholders
of a bank. Shareholders provide much needed capital
depositors and investors invest money, borrowers
AB has taken following measures to create, sustain
obtain credit facility, employees put their effort for the
and deliver value which are as follows:
bank to serve customers and government provides
financial infrastructure by way of regulatory, systems, A. Maintaining adequate capital
supervisions etc. Financial services thus provided lead
Capital adequacy is the measure of the financial
to creation of wealth which is bound to be distributed
strength and sustainability of a bank. Capital to Risk
among stakeholders in different forms of distribution
Weighted Assets Ratio (CRAR) determines the capacity
like Dividend, Interest, Tax, Salaries etc.
of the Bank in terms of meeting the time liabilities

68 | AB Bank | Annual Report 2020

and other risks such as credit risks, market risks, operations and transactions of AB. Risk management
operational risks, etc. It is the policy of AB to maintain system has been designed and implemented to
adequate capital as a cushion for potential losses to ensure quality and value of assets and smooth
absorb unforeseen eventualities/ shocks, to ensure banking operations and services in a sustainable way
long term sustainability and growth of the Bank to to protect interest of shareholders, depositors and
endure and enhance shareholders value. all the stakeholders. Risk management systems also
comply with Bangladesh Bank’s core risk management
At the end of 2020, Bank’s total capital reached at guidelines.
BDT 3,697 Crore as against BDT 3,355 Crore on 31
December 2019. C. Dividend policy
Summary of total capital and capital adequacy ratio of AB’s dividend policy aims at ensuring long term
the Bank under Basel III is as follows: sustainable growth maintaining capital adequacy
Taka in Crore requirements which ultimately leads to shareholders
value creation.
2020 2019
Common Equity Tier-I Capital 1,957 1,871 AB Bank declared 5% Stock Dividend for the year
Tier-2 Capital 1,740 1,484 2020 according to Bangladesh Bank Bangladesh Bank
Total Capital 3,697 3,355 letter no. DBI-1/101/2021-1026 dated 20 April 2021.
Risk weighted assets 34,106 33,138
D. Maintenance of Liquidity
CRAR against
Common Equity Tier-I Capital 5.74% 5.65% Bank maintains liquid assets to carry out the day-to-
Tier-2 Capital 5.10% 4.48% day operations and fulfill the statutory requirements in
Total Capital 10.84% 10.12% relation to business as imposed by the regulator from
time to time. Asset & Liabilities Committee (ALCO) of
the Bank monitors the evolving business situation and
provides direction to maintain an optimum trade- off
between liquidity and profitability.

AB maintains positive mismatch in interest earning

assets and interest bearing liabilities. Bank has
detailed laid down plan for business inflow- outflow to
manage liquidity profile and also ensure generation of
profitability.

E. Utilization of resources
Bank follows a well defined strategy and plan to
mobilize resources such as deposits and borrowings
besides the capital, cost effective market responsive
measures of fund mobilization are adopted for the
purpose with due consideration for of profitable
investments for bottom line growth.

Resource allocation at competitive rate follows

the productive sectors including export oriented
sectors ship-breaking etc. Sectors like SME, Women
Entrepreneur and Agriculture are also in the resource
mobilization scheme.

Bank maintained Credit- Deposit ratio to ensure

resource utilization in proper. This has contributed
towards improvement of assets quality and generation
B. Risk Management of income in the overall. Further, the cost- income
Risk management covering credit risks, market risks ratio of the Bank signifies the optimum utilization of
and operational risks is at the heart of all business resources.

AB Bank | Annual Report 2020 | 69

 F. Contribution to the National Exchequer
AB Bank contributed Taka 528 crore into the national
exchequer in the form of VAT, Income Tax and Excise
Duty.

G. Value Added Statement

Value Added Statement (VAS) for the year ended 31 December 2020
The Value Added Statement for the Bank shows how the value is created and distributed among different
stakeholders of the Bank.
In Crore BDT
2020 2019

Income from Banking Services/Total Income 3,228.10 3,173.08

Less: Cost of services & supplies :
Interest paid on deposits and borrowings, etc 2,013.46 1,884.68
Total operating expenses excluding salary and allowances, loan loss charges
242.53 207.84
and depreciation & amortization
2,256.00 2,092.52
Less: Provision for loans & advances and others 514.49 624.77
Total value added 457.61 455.79
Distribution of added value
To Government 93.07 20% 114.14 25%
To employees 274.08 60% 273.85 60%
To statutory reserve 28.18 6% 25.11 6%
To expansion and Growth 62.29 14% 42.69 9%
Retained earning 10.97 -8.33
Depreciation & amortization 51.32 51.02

457.61 455.79

70 | AB Bank | Annual Report 2020

H. Economic Value Added Statement
EVA Statement for the year ended 31 December 2020
Economic Value Added (EVA) is a key performance indicator to measure profitability of a Bank as compared to cost
of equity capital. It indicates how much additional value has been created by the Bank for its shareholders after
deducting the minimum rate of return required by the shareholders i.e. cost of equity.
In Crore BDT
2020 2019 2018

Shareholder's equity 2,449 2,284 2,265

Add: Cumulative provisions 2,253 1,854 1,366
Total Invested fund by shareholders 4,702 4,138 3,631
Average Shareholder’s equity [A] 4,420 3,884 3,524
Earnings for the year
Profit after taxation 39 17 2
Add: Total provisions excluding taxation 514 514 252
Earnings for the year [B] 554 531 254
Average Cost of Equity (based on highest rate of Shanchay Patra issued by the
Government of Bangladesh) plus 2% risk premium [C] 13.76% 13.76% 13.76%

Cost of average equity [D=A X C] 608 534 485

Economic Value Added [B-D] -54.5 -3.6 -231.2
Growth over last year -1,397% 98% 2,802%

AB Bank | Annual Report 2020 | 71

 H. Market Value Added (MVA)
EVA Statement for the year ended 31 December 2020
Market Value Added (MVA) is the difference between the current market value (based on the quoted price in
the main bourse) of a company and the capital contributed by investors. A high MVA indicates the company has
created substantial wealth for the shareholders.

The share market value of AB stood at Taka 963 crore whereas the book value of the Shareholder’s Equity stood
at Taka 2,449 crore, resulting in a negative Market Value of Taka 1,485 crore as on 31 December 2020. The
calculation of Market Value is given below:

In Crore BDT
2020 2019

Total market value of the equity 963 599

Less: Total book value of the equity 2,449 2,284
Market Value Added -1,485 -1,685

72 | AB Bank | Annual Report 2020

RISK MANAGEMENT REPORT

AB Bank | Annual Report 2020 | 73

 RISK MANAGEMENT REPORT

Introduction Management Strategies of the Bank

Risk Management refers to the practice of identifying AB Bank has always taken cognizance of the risks
potential risks in advance, analyzing them and taking associated at various steps in its operational activities.
necessary precautionary measures to reduce the The Bank is consciously ensuring Risk Return
risk. Efficient tradeoff between risk and reward are optimization based on its approved Risk Appetite,
compulsory for any financial institution to maximize coupled with the necessary checks and control systems
risk-adjusted returns within stipulated boundaries. AB to continuously detect, assess and mitigate risks as
Bank Limited is thus running a dedicated functional well as following transparent policies and procedures
unit in the bank to take care of the bank’s Risk to follow up on breaches and deviations.
Management. The Bank has established a strong,
disciplined and inclusive risk management culture, Risk Appetite Framework
where risk management is a responsibility shared AB Bank has its yearly ‘Risk Appetite Statement’
by all the employees of the Bank and involving all statement, which is duly approved by the Board of
functions. Directors and also submitted to Bangladesh Bank
on a regular basis. Risk Appetite framework plays a
Risks Areas in Banking core instrumental role for better alignment of overall
corporate strategy, risk mitigation and capital allocation.
Risks in Banking Sector It also plays an important role in cascading the Risk
Strategy down through the institution. Therefore,
Core Risk Areas Other Material risk
Business Strategy, Risk Appetite and Management
1. Credit risk 1. Business risk Action Trigger are interlinked with each other.
2. Market risk 2. Reputational risk
3. Operational risk 3. Residual risk In terms of Bangladesh Bank instructions vide DOS
4. Liquidity risk 4. Settlement risk Circular Letter No. 13 dated September 09, 2015,
5. Money laundering 5. Strategic risk DOS letter No. DOS (RMMS) 1154/1/2018-847 dated
risk 6. Human Resources February 28, 2018 and subsequent DOS Circular
No. 04 dated October 08, 2018, the Bank has Board
6. ICT risk Turnover Risk
approved Risk Appetite statement for the year-2020.
7. Environmental and
climate change risk Policies & Guidelines
AB Bank Limited has duly approved policies, guidelines
Risk Culture in AB Bank
and manuals covering all functional area to cover up
A sound and consistent risk culture throughout all possible risk triggering areas of business operations
the Bank, is one of the key elements of effective and possible precautions therefrom. The Bank ensures
risk management. To gain competitive advantages regular review of all policies, guidelines and manuals
in the industry, a robust risk culture is one of the taking into consideration of all central bank guidelines
crucial elements. Building and maintaining a robust as well as addressing the macro economical changes,
risk culture is critical to ensure the success of risk technological advancement and other operating issues
functions. Thus the Board of Directors and the Bank as befitted.
Management promotes a culture of accountability to
adhere to Risk Management issues. The responsibility Assigning Responsibilities
for risk management in the Bank is vested upon the
Responsibility for risk management resides at all levels
Board of Directors, which is cascaded down to Senior
Management and then further down the line. Risk within the Bank including each business managers and
culture and its impact on effective risk management is risk analysts. The Bank allocates the responsibilities
a major concern for the Board and Senior Management accordingly so that risk/return decisions are taken at
of AB Bank Limited. The Bank has relevant policies, the most appropriate level.
guidelines and manuals for different functional areas
of its business operations in line with central bank’s The Risk Management procedures are approved,
guidelines and regulations. monitored and mitigated at different stages within the

74 | AB Bank | Annual Report 2020

Bank both at Board level as well as the management Operational Risk Management
level. The Bank has its approved directives through The Bank is always cautious about the Operational
the decisions from the meetings of the Board of risk, as this is the risk that comes from the within.
Directors, Board Risk Management Committee To avoid direct or indirect operational losses, Bank
(BRMC), Executive Committee and Audit Committee. applies adequate internal controls and employee
accountability. The Bank is committed to alleviate this
The Management team of the bank follows the type of risk through duly approved thorough operational
decisions and guidance from the Board level guidelines, strong dedicated team to implement
committees and implement the directives through policies at all levels through meticulous check and
various management level committees like Supervisory balance, frequent audits as well as adequate trainings,
Review Process (SRP) Team, Senior Management meetings for increased awareness at all levels.
Team (SMT), Executive Risk Management Committee
(ERMC), Assets Liability Committees (ALCO), Credit Liquidity Risk Management
Risk Management Committee (CRMC), etc. The This is a risk that Bank is unable to stay resilient. Banks
Internal Control & Compliance Division (ICCD) and face this risk, when the cushion provided by the liquid
Risk Management Department (RMD) also plays vital assets of the bank are not sufficient to meet maturing
roles in the risk management monitoring process of obligations. AB Bank has dedicated Asset Liability
the Bank. Committee (ALCO) for taking necessary precautions to
restrain the risks that can arouse from liquidity issue:
Risk Management • Bank is always highly cautious about maintaining
Credit Risk Management: the parameters that are set by central bank
Credit risk is, perhaps, the most obvious of the risks that • To counter maturity gaps, a balanced mix of short
can arise from the Banking business. AB Bank Limited and long terms deposits are ensured
therefore always do the best to ensure the likelihood • Business growth in assets viz-a-viz liabilities are
that customers will pay back the Bank’s due in a timely formulated well ahead in the annual budget
manner. Bank has dedicated credit team at branches, maintaining a proper balance
business division and Head Office for proper analysis
• The Bank has attractive deposit based products to
of prospective borrower’s financial health, business
capture depositors from various segments
status, cashflow trends as well as market reputation,
experience in the relevant business line, etc. Other risk Combating Money Laundering & Financing of
mitigating tools of the Bank include – Credit Rating Terrorism
of the customers, centralized credit limit activation, AB Bank Limited always emphasizes on Combating
software based credit monitoring system, etc. Money Laundering & Financing of Terrorism through
robustness in awareness programs and trainings
Market Risk Management
among all officials round the year. To avoid all sorts
Managing market risk is essential for all the banks of risks that are directly associated with ‘money’ & to
due to the volatile nature of the current markets. AB safeguard the bank from all possible threats, AB Bank
Bank limited has the dedicated ALCO (Asset Liability Limited has taken the following steps:
Committee) comprising Treasury and other Senior
• Dedicated Unit naming ‘Central Compliance
Management to decide upon the mitigation of the risk
Department (CCD)’ is in process round the year
that emanates from adverse movement of interest
under supervision of Bank’s Chief Anti Money
rate, foreign exchange rates, equity prices, commodity
Laundering Compliance Officer (CAMLCO)
prices, etc. the ALCO takes into consideration the
present and anticipated future market trend and • AB Bank guidelines on Anti Money Laundering
takes appropriate decisions on interest rates and (AML) and Combating the Financing of Terrorism
investments. The Bank has segregated Front Office, (CFT) have been formulated and disseminated to
Mid Office and Back Office to ensure ‘check and all employees of the bank
balance’ between Treasury functions.

AB Bank | Annual Report 2020 | 75

 • Software based monitoring has been implemented Latest Stress Testing Report based on December 31,
for monitoring account activities and for Auto 2020 has been approved by the Board of the Bank and
reporting of Cash Transaction Reports (CTR) submitted to Bangladesh Bank accordingly.
• Internal audit team regularly reviewing AML &
CFT compliance status of branches Supervisory Review Process (SRP) -
Supervisory Review Evaluation Process
Capital Plan and Management (SREP) on Internal Capital Adequacy
The Bank is keen on maintaining strong capital base Assessment Process (ICAAP)
to support its business growth as well as to comply Supervisory Review Process (SRP) gives emphasis
with all regulatory requirements and obtained good to the value that Banks have a process for assessing
Credit Rating and CAMELS rating. To have a cushion overall capital adequacy in relation to risk profile and
to absorb any unforeseen shock, the capital adequacy strategy for maintaining their capital at a satisfactory
position and assessment is reported to the Board of level. The process involves constitution of two teams
Directors and to the Risk Committee periodically. viz SRP Team at the Bank level and SREP Team at
Bangladesh Bank. Accordingly, AB Bank Limited has
Capital Maintenance formed its SRP team duly approved by the Board.
Following important issues are considered for capital
maintenance: Supervisory Review Evaluation Team (SREP) of
central bank reviews and evaluates the Bank’s ICAAP
• Increased capital requirement for sustainable
and strategies, as well as its ability to monitor and
business growth
ensure compliance with economic Capital Adequacy
• Keeping sufficient cushion to absorb unforeseen Ratio (CAR). Under this process, Bank has to maintain
shock or stress ‘Adequate Capital’ in addition to Minimum Capital
• Cost effective options for raising Tier 1 and Tier 2 Requirement (MCR) under Section 13 of Bank Company
capital as per Basel-III accord (Amendment up to 2018) Act, 1991.
• Improving credit rating and CAMELS rating of the
Bank The document for ICAAP-2019 is under process. After
its completion, necessary approval from the Board will
• Meeting regulatory requirements
be obtained and be submitted to central bank for their
• Meeting covenants of lenders further review and for holding the SRP-SREP dialogue
thereon.
The Bank is always cautious about ensuring satisfactory
return to shareholders as well as sustainable growth
Risk Management Division
of the Bank along with strong capital adequacy ratio
(CAR) to protect greater interest of the depositors and The Bank has an established Risk Management
shareholders. Department (RMD) in accordance with Bangladesh
Bank guidelines. The department follows Bangladesh
Bank’s risk related directives and works closely with
Stress Testing
core risks dealing divisions to address and mitigate
AB Bank conducts stress testing exercise and prepares the risks properly. RMD has a continuous focus on
Stress Testing Report on Quarterly basis in accordance the core risk areas. The department plays a key role
with Bangladesh Bank Guidelines considering the in providing suggestions where mitigating factors
following risk factors: require some added expertise and need to undertake
a) Credit Risk required initiatives. Mentionable that, the Board’s
b) Interest Rate Risk Risk Management Committee has authorized the
c) Exchange Rate Risk Management to implement all the directives of the
central bank timely and properly. RMD is working in
d) Equity Price Risk
line with the directives.
e) Liquidity Risk

76 | AB Bank | Annual Report 2020

 Conclusion
This is an era of change, thus era of Risk Management.
With the constant change of macro factors in the
economics, along with the change of technology and
trends in international business, risks in Banking area
are ever changing all the time. Thus to stay safe and
to succeed in Banking operation, Risk Management
has to ensure through revised operating model,
process management, IT/ Data infrastructure as well
as efficient talent pool inside the organization in a
continuous manner. To uphold the reputation that AB
Bank is holding in the Banking industry of the country
for long 39 years, AB Bank Limited is considering
Risk Management as core part of Bank’s strategic
planning. Along with the business growth and profit
maximization, the Bank will continue to grow at an
optimum level through customer satisfaction as well
as effective risk management.

Sajjad Hussain
AMD & Chief Risk Officer

77 | AB Bank | Annual Report 2020 AB Bank | Annual Report 2020 | 77

 DIRECTORS’ REPORT

78 | AB Bank | Annual Report 2020

DIRECTORS’ REPORT

Bismillahir Rahmanir Rahim major portion of the stimulus packages in Bangladesh is

in the form of liquidity support through the commercial
Honorable Shareholders
banks.
As-salamu alaikum,
Bangladesh Bank has taken special measures to ensure
Banks play a pivotal role in the economy and the social adequate liquidity in the financial market. In April 2020,
uplift of a country. Initiatives taken by Banks and its overnight REPO rates were lowered from 6 percent to
partnership with entrepreneurs contribute positively 5.25 percent and the daily Cash Reserve Ratio (CRR) was
towards the economy, business environment, creation of lowered to 4.5 percent.
job opportunities, technological innovations and thereby the
society as a whole. Excess liquidity in the banking sector has nearly doubled
from BDT 103 thousand crore in January 2020 to BDT
The Board of Directors of AB Bank Limited, the first Private 205 thousand crore in December 2020. The excess
Sector Bank of the country, welcomes you all to the 39th liquidity is likely to stimulate investment on the one hand
Annual General Meeting (AGM) of the Bank and presents and result in lower yield on savings on the other, both on
before you the Annual Report and the Audited Financial account of lowering of interest rates. In addition, banks
Statements for the year 2020. may attempt to manage the excess liquidity through
aggressive lending in risk-prone areas leading to higher
Dear Shareholders,
volume of NPLs, creation of asset bubbles and higher
The Board of Directors of AB Bank Limited is pleased to inflation.
present before you the Directors’ Report for the year ended
December 31, 2020. Inflation
This Report summarizes the global and local macroeconomic The beginning of FY 2020-21 witnessed an inflation rate
trends, projections, outlook, and presents AB Bank’s of 5.64 per cent which later peaked at 5.77 per cent in
business highlights, retail product lines and key financial October 2020. It returned to the initial level of 5.64 percent
indicators of the year ended 2020. by January 2021. This is consistent with Asian Development
Bank’s forecast of 5.8 percent inflation rate for the FY 2020-
Global Economy 21. Although food inflation has been on the rise recently,
During the first part of 2020, the global economy was hard- non-food inflation is on the decrease with the exception of
hit by the first wave of the COVID-19 pandemic. Just when medical care and health expenses, which rose from 7.47
the global economy was showing signs of recovery in the percent in July 2020 to 8.72 percent in January 2021.
latter part of 2020, the second wave, propelled by new Export and Import
variants of the virus, swept across many parts of the world
Even though the economic growth of Bangladesh has
partially offsetting the positive effects of vaccine optimism.
been exceptional of late, it has lagged behind economies
According to IMF estimates, the global economy contracted like Cambodia and Vietnam mainly because of the
by 3.3 percent in 2020. However, the global output is country’s excessive reliance on Ready-made Garments
expected to recover with projected growth rates of 6 percent (RMG) sector to stimulate export growth; evidence of
and 4.4 percent in 2021 and 2022 respectively. this argument is found in the recent stagnation and
subsequent slump in export growth. During the July-
Bangladesh Economy January period of FY 2020-21, total export earnings
Although the economy of Bangladesh has shown exceptional decreased by 1.1 percent. In this regard, although
resilience during the pandemic, it has not been entirely export of knitwear posted a positive growth of 3.8
immune to the adverse effects of the global contraction. percent, performance of woven-wear and that of leather
In the face of the second wave, ADB recently revised down /leather goods declined by 10.9 percent and 10.6 percent
their original forecast of 6.8 percent growth rate of real GDP respectively.
for the fiscal year (FY) 2020-21 to 5.6 percent. The growth Imports payments during the first six months of FY 2021
of exports has dipped recently in November 2020 after a fell by 6.8 percent faster than that of the export earnings
promising rise between the immediate past April and June. causing the trade deficit to narrow. In particular, import
The adverse effect of the second wave on the business of intermediate goods declined by 8.8 percent, import
sector of Bangladesh is evident in the 16.7 percent decline of capital goods declined by 16.7 percent and import of
in the import of capital goods and 29.2 percent decline in the capital machinery declined by 29.2 percent. However,
import of capital machinery. Net FDI inflow also registered import payments against food grain imports rose by 50.4
a negative growth of 22 percent during the July-December percent against a back-drop of plunging food stocks.
period of FY 2020-21.
Remittance
Banking Sector Saudi Arabia, USA and UAE were the top three sources of
The banking sector of Bangladesh will undoubtedly play remittance inflow during July-December 2020. Compared
a key role in the recovery process, especially since a to July-December 2019, the workers remittance inflow
AB Bank | Annual Report 2020 | 79
 increased by 37.6 percent during July-December 2020. Business Highlight in 2020
Due to the exceptional remittance inflow, Current Exposure in the Corporate Banking Segment accounted
Account balance was at a surplus of USD 4.3 billion as of for BDT 23,712 Crore or 86.28% of the Banks total loan
December 2020. The robust remittance inflow has also portfolio as at December 31, 2020. Exposure is largely
led to an increase in the net foreign assets of commercial concentrated in the following 03 (three) Sectors: a) Textile
banks and overall rise of foreign exchange reserves. and RMG-18%, b) Steel Manufacturing Industry-12%, c)
Bangladesh’s growth of remittance inflow has been Medical Education and Health Service-5%. This amply
significantly greater than India, Philippines, Sri Lanka demonstrates the Bank’s involvement in such sectors
and marginally greater than that of Pakistan. which are key to our economy. The Bank continues to
have long standing relationships with Country’s prime
names in the Corporate Sector.
BUSINESS OVERVIEW 2020
Corporate Banking Retail Banking
Traditionally, it is the Corporate Clientele that still AB Retail Banking Department completely reinvented
constitute the main-frame of AB Bank’s Loan Portfolio. itself in the year 2020. With launch of market leading
The Bank, since its inception, has been providing a products along with intense focus on performance of
broad spectrum of products and services and offering all sales channels, AB Retail has rewritten every sales
Corporate Banking Solutions to the Country’s ever- record of AB in 2020. Maintaining the pace off continuous
growing Corporate Sector. campaigns and innovations in products, AB Retail is
moving steadfastly to establish itself as one of the
With expertise, innovation and customization, the Bank
top retail focused banks of Bangladesh. Even during a
simplifies the complexities of the financial world for the global pandemic, AB Retail has launched new products
clients and helps them attain their desired objectives. to specifically suit the customer needs, implemented a
The prime focus is on building and maintaining long- state of the art Contact Center to allow customers to
term mutually beneficial relationship with the clients, and connect with the bank without leaving home and took the
become a proud partner in the respective Business areas products to the customers’ door step through a dedicated
of their journey towards development and growth. The sales team which resulted in overall positive growth.
Corporate Products and Services of AB Bank Limited are With endeavors in new business areas like “Acquiring”,
extended to the Corporate Clients of its various Branches AB Retail is committed to progress at rapid pace through
through Head Office Corporate Finance Division. AB’s speed, innovation and diversification.
innovative and insightful support has transformed a good
number of Corporate Customers who, with the passage Products Launched in 2020:
of time, have developed into market leaders. AB Bank ‘AB wbwðšÍ‘: AB Nishchinto is a unique product in the banking
Limited has a proven track record as a book runner, industry under which the customers enjoys life insurance
mandated lead arranger and underwriter of Syndicated coverage up to BDT 80 lac from MetLife without paying
loans. Due to the long experience and flexible handling, any premium. The Bank bears the premium cost on behalf
the Bank can offer clients tailored loans and facilities of customers. AB Nishchinto customers receive insurance
as well as a complete service package for complex coverage from MetLife.
transactions through Syndication. As an unwavering
‘AB Rb¥f‚wg’: A Cash Incentive of 1% is offered by AB Bank to
financial partner with substantial underwriting capacity,
ensure an additional income for Non-resident Bangladeshis
the Bank offers clients the necessary services to raise
(NRBs) in addition to Government provided 2% Cash
capital and debt from the market.
Incentive on inward remittances (2% Bangladesh Govt.
2020 has been a very challenging year for the country +1% AB Bank = Total 3% Cash Incentive). NRBs receive
on account of the pandemic – COVID 19. As with all this additional income by remitting their hard earned money
other business segments, Corporate Customers were from any part of the world directly to his/her own or his/her
also subjected to promote and hardships of the Bank. Nominees Account with AB Bank.
However, it was the timely steps by Government and
The following Accounts have been particularly developed for
Bangladesh Bank manifested incentive package that
expatriate Bangladeshis to suit their convenience:
helped the customers and our continuing to help the
Customers the difficult time in the form of sanction • AB Jonmobhumi Savings Account
of various stimulus and other incentive taken by the
• AB Jonmobhumi MSDS Account (Monthly Savings
Government and Bangladesh Bank that helped customers Deposit Scheme)
to sustain the difficulties of the pandemic.
• AB Jonmobhumi FD Account (Fixed Deposit Account)

80 | AB Bank | Annual Report 2020

“AB HEIGHT”: It is a transactional deposit account with method to provide banking services is increasingly
associated credit card facility and further attractive becoming an important distribution channel to reach
features aligning with the needs of middle and upper the unbanked population of the society in addition
middle class population segment. Minimum amount to the existing customer base. Over the years, Agent
required to open an Account is BDT 100,000 which Banking has gained popularity and proved to be very
can only be withdrawn at the time of Account closure. effective for developing countries.

AB stands for AB Bank Limited

H stands for Honor
E stands for Education
I stands for Insurance
G stands for Goods
Our Beginning
H stands for Health
AB Agent Banking started its operation from 17th
T stands for Travel & Trust January 2018. Since its inception, the goal has been
to bring the unbanked population within the fold
Retail Deposit Portfolio of the Bank as of 31st December of financial inclusion and create opportunities for
2020 (excluding Islamic Banking): entrepreneurship. The customers of Agent Banking
Outlets are able to avail all basic banking services at
SL Product / Portfolio BDT in Crore all the Agent Outlets as well as at all the AB Bank
1. Total Retail FD + Scheme 10,922.00 Branches across the country. AB Bank is committed to
promote Agent Banking so that the true spirit of Digital
2. Total Savings Deposits 3,478.02 Bangladesh can be well supported by bringing the
unbanked population of the nation under this unique
Savings 2,650.64
banking platform.
AB Height 254.89
Our Journey
MaxSaver 309.70

Shampurna 262.79

3. Other Retail Current Account 131.20

Retail Deposit source by Agent
4. 83.65
Banking
Total Retail Deposits 14,614.87

On the Assets side, exposure in Retail Banking was

BDT 525.12 crore at year ending 2020, which was
1.91% of total Loan Portfolios.

AB Agent Banking
Background
Agent Banking is defined as the banking services
provided (outside of regular bank branches) by
engaging Agents under a valid agreement between
the Bank and the selected Agent. The Agent is the
owner of an outlet who conducts banking transactions
on behalf of a Bank. It was introduced by Bangladesh
Bank (BB) in 2013. The aim is to provide financial
services to the vastly unbanked segment of the
population, especially those from the geographically
dispersed locations. This concept of alternative

AB Bank | Annual Report 2020 | 81

 Current Services

A/C Opening Cash Deposit Cash Withdrawal Mini Bank Statement Fund Transfer IFR Disbursement

Debit Card & Cheque Internet Banking Payroll Management RTGS Loan Utility Bill

Transformation
Year 2021 has been declared as the year of
transformation for AB Agent Banking. After successful
completion of 3 years, AB Agent Banking is now set
to expand its operation across all the Districts of
the country in full swing. Total Agent Outlets have
already increased to 110 which is a 48% growth in 4
months ending April 30, 2021; Total Deposit crossed
BDT 100 crore for the first time and reached BDT 142
crore which is 60% increase during the same period.
Current demography of the Agent Outlets covers 55%
of the Districts across the country with a vision to
cover more than 90% of the Districts by end 2021.

Current Business

Components Mar, 20 Jun, 20 Sep, 20 Dec, 20 Mar, 21

Number of
18,241 18,964 21,091 23,749 26,131
Accounts

Deposit Value
60.49 66.29 80.60 87.95 142.71
(In Crore)

82 | AB Bank | Annual Report 2020

SME Banking
SME’s played a vital role in helping our country graduates
from being among the Least Developed Countries into
being bracketed as a Developing Country. SME financing
uplifts our economy in a sustainable form through
diversified portfolio, financial inclusion and employment
generation. AB has strengthened its SME Banking operation
to effectively accommodate the financial needs of clientele
in this thrust sector.
ABBL, SME Division performs the pivotal role for all SME
related issues, programs, projects and is also responsible
for providing best financial solutions to SME Customers
of the Bank. AB is very much committed to SME Banking
complying with the appropriate policy guidelines and
offering customized products to its Customers thereby
contributing to the growth of SME Business in the country.
Since its inception, AB Bank has been encouraging Small
endeavors through providing necessary financial support.
AB set examples in the field of entrepreneur creation.
AB can feel rightly proud with the fact that a number of
entrepreneurs who started its journey with AB’s support in
a small way have, over the years of nourishment, flourished
into reputed large business entities.

As at year end 2020, the Banks exposure in SME Banking

stand at BDT 2,916.44 crore, which was 10.61% of the
Bank’s total Loan Portfolios, Signifying the importance that
Bank attach to this business segment.

SME Products and Facilities

SME Portfolio Mix

AB Bank | Annual Report 2020 | 83

 Agricultural & Rural Credit International Debit Cards-First-time in Bangladesh
AB places strong emphasis on financing of the Agricultural AB Bank takes pride in introducing International Debit
Sector, particularly in the area of Crop Cultivation, Cards (under the VISA network) - a first of its kind in
through its own countrywide branch network as well Bangladesh. Such cardholders are facilitated to tag their
as through renowned NGO/MFI linkages having strong Savings Account balance for meeting expenses abroad
network at grassroot levels. (endorsement rules apply). This brings into convenience
Advances Agricultural & Rural Credit as at end 2020, of using one’s own Account Balance during foreign travel
amounted to BDT 329.41 crore, which was 1.20% of the without resorting to applying for separate Credit Cards.
Banks total Loan Portfolio. The product has since become immensely popular, and
few other banks of Bangladesh have followed suit.

Debit Cards
A Debit Card which can be used at all AB Bank ATMs
without any fee. However, subject to a nominal fee, Debit
Card is also accepted at all ATMs under National Payment
Switch of Bangladesh (NPSB) network across the country.
AB Bank Debit Cardholders can also use their Cards at
all Visa labeled POS terminals around the country for
purchasing goods and services. Moreover, the Customers
can also use this card to withdraw up to BDT 300,000
from Branches using Branch POS terminals.

Automated Teller Machines (ATMs)

AB Bank has the fourth largest ATM network with 254
AB Bank Alternate Delivery Channel ATMs placed across the country. Usage of AB Bank ATMs
AB Bank Limited is a strong brand in the banking are seen to be on the rise for availing cash withdrawal
arena with a country wide network of ATMs located in and other banking services. Notably, the Bank’s ATM
urban and rural areas. At present, the Bank’s Electronic Booths are largely frequented to avail such facilities as
Business (eBiz) Division is enriched with Visa Debit Collection of DESCO Bills, Online and Mobile Top-up( AB
Cards, MasterCard Credit Cards, ATMs, SMS Banking, Bank Visa Debit Cards are used for the purpose).
Branch POS and Internet Banking Mobile App with a 24-
hour Call Center.

84 | AB Bank | Annual Report 2020

Services available at the ATM Booths are: • Mobile Top-Up
• Cash Withdrawal • Bill Payment
• Balance Inquiry
• PIN Change Internet Banking & Mobile App
• Mini Statement To facilitate modern banking services, AB Bank revamped
• NPSB Fund Transfer its Internet Banking offers and introduced Mobile App
under the umbrella of AB Direct. Internet Banking is
AB Bank has also joined the National Payment Switch browser and device independent and the Mobile App is
of Bangladesh (NPSB) which is operated by Bangladesh available for Android and Apple iOS.
Bank. Through this arrangement, any Member Banks’
“Banking everywhere, never at a bank” – believing in this
Cardholder can withdraw cash from AB Bank’s ATMs
mantra, AB Bank brings its new Internet Banking with the
similarly, AB Bank’s Cardholders can also withdraw cash
following benefits:
from other NPSB Member Banks’ ATMs. Nearly 3.87
million transactions were made through AB Bank ATMs • Instant access to Account information and
in 2020. Interestingly, other Banks’ Cardholders use Account balance
AB Bank’s ATMs more due to maximum availability and
• Print or electronically save transaction history
consistent uptime.
• Transfer funds to any Bank account within
AB Bank is also ready with MFS integration via NPSB and Bangladesh through EFT & Instant Transfer
will be able to serve its Customers as soon as this facility
is launched by the Bangladesh Bank. • Pay utility bills (e.g. Dhaka WASA, DESCO, DPDC,
and others)
Credit Cards
AB Bank, in partnership with MasterCard, launched the
World MasterCard Line of Credit Cards in 2014. The World
MasterCard is in the highest tier of the MasterCard’s
portfolio and comes with an array of exclusive benefits
specifically focused on premium travelers. In addition to
the World MasterCard, AB Bank also launched MasterCard
Titanium and MasterCard Gold Credit Cards.

Discount and EMI Programs

Corporate Internet Banking
AB Bank, in partnership with leading merchants
and Service Providers, have introduced discount & In execution of the 2nd phase of AB Direct initiative,
0%-interest EMI programs in the fields of Health Care, AB Bank introduced Internet Banking services for its
Hotels & Resorts, Airlines & Tourism, Electronics, Life Corporate Customers as well. Company and business
Style, Dining etc. The discount programs are available customers can use a highly specialized version of the
in both Visa Debit and MasterCard Credit Cards whereas Internet Banking solution for real time access to their
EMI programs are available via Credit Cards. accounts for balance information and making payments
using various channels i.e. BEFTN, RTGS, Payment, Utility
SMS Banking Bills etc.
AB Bank SMS Banking facilitates Banking on the Mobile This version has a strong multi-layer authentication
24 hours a day. All that SMS Banking Customer needs workflow for payments along with payment delegation
to do is to send a Text message to AB Bank Short Code hierarchy. This version also supports bulk payment
(16207) to avail their desired service. processing for salary disbursements, etc. Customers can
also view transaction histories and download them in
The AB Bank SMS service comes with the following Excel format for further automated consumption at their
facilities: end.
• Balance Inquiry
Branch POS (Chequeless Transaction)
• Mini Statement
AB Bank introduced Branch POS (Point of Sale) Services to
• PIN Change
consolidate its position in the market in terms of offering
• Fund Transfer technology-based Retail Banking products. This service

AB Bank | Annual Report 2020 | 85

 was introduced primarily to facilitate AB Bank Visa Debit Information Technology (IT)
Cardholders enabling higher cash withdrawals through AB Bank IT Division is relentlessly working to expand
POS terminals in any AB Bank Branch. the horizon of AB through rolling out initiatives, up-
gradations, system consolidations among others and
Utility Payments providing a platform for facilitating best possible customer
AB Bank is also managed to collect Utility bills of service along with enablement for execution of strategic
the undernoted customers via its Branches and SMS business needs. All the ADC-related services, entire AB
Banking and Internet Banking Channel: network infrastructure, cyber-security, core and ancillary
systems are powered by IT.
• Dhaka Water Supply and Sewerage Authority
(DHAKA WASA) The rapidly evolving banking needs have also led AB
• Dhaka Electric Supply Company Limited (DESCO) Bank to give increased focus on information technology
dependent products and solutions by adapting to state
• Dhaka Power Distribution Company Limited of the art technology platform. This is ever so important
(DPDC) with the COVID-19 backdrop where physical movement
• Bangladesh Telecommunications Company and interactions are greatly reduced and customers
Limited (BTCL) appreciate services that can be provided at the comfort
of their safety zone.
• Titas Gas Transmission and Distribution Company
Limited (TITAS GAS) Major IT activities in 2020 were:
• Chattogram Water Supply and Sewerage Authority • Continuation of core banking transformation
(CTG WASA) project
AB Bank customers are also able to pay these Utility Bills • Rollout of FB Teller solution gradually replacing
through Internet Banking and SMS Banking avenues. the outdated teller software EBA
• Complete customization in FB Teller for better
Call Center branch operations
The Call Center, accessed through the short code • Support Mumbai CBS upgradation project
16207, was set up by IT & eBiz Division and is currently
• Develop a dispute management and tracking
serving a significant number of ABBL customers by way system to improve eBiz customer service
of responding to all electronic banking related queries.
• Implement two levels of Next Generation Firewalls
(from two different top-tier OEMs) to ensure
increased security
• Set up network infrastructure of new HO at
SkyMark, Gulshan
• Implementation of SIEM (Security Information
and Event Management)
• Complete development of AB Trade Portal (planned
to go live in 2021)
• Successful launching of RemitBook – facilitating
faster inward foreign remittance and integration
with Exchange Houses as well as Buro Bangladesh
Social Media Presence
Investment Banking Department (IBD)
AB Bank has a Facebook Page to promote its Investment Banking Department (IBD) was established
products and services. It is also used to respond to in 2006 to manage the Bank’s Investments in the Capital
various customer enquiries on different types of AB Market. There is also a Custodian Unit which operates
Bank products and services e.g. Internet Banking, under IBD providing one-stop services to NRB’s and
ATM Locations, Branch locations etc. Any customer Foreign Investors interested to invest in Capital Market in
or a potential customer can access AB Bank’s social Bangladesh. IBD also plays a monitoring and supervisory
media site using the URLhttps://www.facebook.com/ role to oversee the performance of AB Investment Limited
abbanklimited/ and AB Securities Limited. AB’s last five years portfolio
investments (Quoted shares) are shown below:

86 | AB Bank | Annual Report 2020

 economic activity, increasing imports and exports,
increasing remittances from Non-resident Bangladeshis
(NRB) working abroad, etc. make it a prime target for
criminals to commit ML & TF related crimes. Therefore,
we need to be vigilant to encounter the efforts of these
criminals.

AB understands that the fight against money laundering

and terrorist financing is an individual as well as a
collective task. AML & CFT knowledge is essential for
every officer of the Bank for maintenance of safety and
ethical standards.
Keeping in pace with AB’s vision of innovative banking,
IBD focuses on diversifying service horizons from that On June 16, 2020; BFIU issued Circular No. 26 which
of conventional Merchant Banking services. IBD also brings clarity and clear guidance to implement AML/CFT
extends services for the Portfolio Management needs of Program in the most effective way to strengthen a Bank’s
Non Resident Bangladeshi (NRBs) and Foreign Investors capacity to mitigate money laundering and terrorist
and also facilitates remittance in the local capital market financing risks.
through NRB-IDA, FC and NITA account. As a value- AB Bank has in place the following documented Manuals
added option IBD also has a Custodian Wing under a and Systems/procedures to combat money laundering
separate license. and terrorist financing:
1st Mutual Fund • Anti money Laundering (AML) & Combating
At the end of 2020, the “AB Bank 1st Mutual Fund” has Financing of Terrorism (CFT) Policies
reported Net Asset Value (NAV) of BDT 10.96 per unit • Guidelines for Prevention of Trade Based Money
on the basis of current market price and BDT11.76 per
Laundering (TBML)
unit on the basis of cost price against face value of BDT
10.00. The total Net Assets of the Fund stood at BDT • Well defined Internal Control System
2,621 million on the basis of market price and BDT 2,812
million on the basis of cost price after considering all
• Functional Central Compliance (CC) Committee
assets and liabilities of the Fund. • Staff Screening at the time of recruiting
AML & CFT Compliance Division (ACCD) • Arrangement of Trainings Programs for all
One of the most important area requiring constant Employees
surveillance of financial institutions today is the area • Customer Acceptance Policy (CAP)
concerning Anti-Money Laundering and Combating
Financing of Terrorism. The importance of combating • Risk Management Guidelines (RMG)
Money Laundering and Terrorism Finance is increasing • Embargo Program & Screening Mechanism
day by day. The regulators worldwide are also taking
new initiatives and implementing new laws, regulations, • Prohibition of Business Relationship with Shell
guidelines, etc. to counter and prevent Money Banks/ Companies
Laundering and terrorism financing crimes. Financial
• Combating Terrorist Financing (TF) & Proliferation
institutions across the world are being used as conduits
for channeling these criminal activities and therefore, of Financing Weapons of Mass Destruction (WMD)
governments, regulators and law enforcement agencies • Annual Review of Correspondent Relationship
depend on financial institutions like ours to identify and
prevent these from occurring. • Appropriate supervision on Agent Banking
activities
In recent times, Bangladesh has been experiencing crimes
related to drug smuggling, human trafficking, organized • Filing of Suspicious Transactions Report/Suspicious
crime and domestic terrorism. Criminals associated with Activity Report
these crimes are employing new and advanced methods • Anti-corruption & Bribery (ABC) policy
to avoid detection.
• Well defined responsibilities of Employees
Money Laundering and Terrorism has far reaching
consequences for any country. Bangladesh’s growing

AB Bank | Annual Report 2020 | 87

 Off-shore Banking Unit (OBU) for submission to the Board Audit Committee. It also
AB Bank introduced OBU operation located in EPZ summarizes the decisions of Board Audit Committee
Branch, CEPZ, Chattogram. Since inception OBU (BAC) Meetings quarterly and submits the same to the
extended Banking facilities to a substantial number of Board of Directors along with the status of compliance.
foreign owned companies as well as Corporate resident Monitoring Division also conducts surprise visits of
Customers with due permission from the regulatory Branches as and when required.
body. On May 31, 2016 OBU was declared as a separate In the year 2020, DICC conducted the following audit and
branch. Subsequently, an Offshore Banking Division
inspections activities:
was created for the purpose of supervising Off-shore
Banking Operations of the Bank. A dedicated Branch Risk-Based Audit of Branches: 96 Branches
Anti Money Laundering Compliance Officer (BAMCLO) Annual Comprehensive Audit of Branches: 96 Branches
has been assigned to OBU to comply with Anti Money Annual Comprehensive Audit of Div./Dept.: 14 Div./Dept
Laundering Policies and relevant regulations. Enhanced
Special Inspection of AML & CFT activities: 06 Branches
screening mechanism has been established for screening
& 05 Agents of ABBL
customers and transactions of OBU in compliance with
OFAC, UN, EU and UK provided Sanctions Lists. Total Special Investigation: 09 Numbers
Deposits and Advances of OBU as of 31 December 2020 Special Audit: 01 Division
was USD 156,386 and USD 72,041,892 respectively. Surprise Visit: 15 Branches
Department of Internal Control & Compliance (DICC) Operations Department
The Department of Internal Control & Compliance (DICC)
General Banking Operations
is comprised of the following Divisions:
General Banking Operations (GBO) is responsible to set
• Audit & Inspection Division certain standards in delivery of products and services
• Compliance Division and within a regulated framework. It continuously monitors
Branch activities to mitigate risks and ensures regulatory
• Monitoring Division compliance and also provides necessary support all
Branches as and when required.
Audit & Inspection Division conducts Risk-Based Audit
and Annual Comprehensive Audit of the Branches and In 2020, the Department undertook quite a few initiatives
Departments/Divisions/Units of Head Office including to ensure a) superior service standards, b) effective
Concurrent Audit on FIT Division. Special Audit of some operational controls, c) improved process flows besides
specific issues (e.g. year-end Branches’ Cash Position, taking steps for combating COVID-19 related health
Security Stock Verification etc.), Audit of Card Division hazards. Some of the key initiatives are listed below:
and AML & CFT issues are also conducted by the Division. • To improve the service quality GBO implemented
It also carries out investigative functions as and when
the AB 360° Customer Service Program (one stop
warranted. The Division also summarizes the major audit
service) through which customers are designed to
findings of the Internal Audit & Inspection Teams during
receive all General Banking services from a ‘single
the course of audit and inspection and presents these
desk’. The novel initiative has been introduced at
before the Board Audit Committee periodically for their
perusal. It also prepares the Annual Integrated Health 11 Branches and will be gradually rolled out at all
Report of the Bank and submits the same to Bangladesh large and mid-size Branches of the Bank by 2021.
Bank after taking the approval from the Board of • Arranged trainings sessions on major operational
Directors. processes e.g. Account Opening & Customer
Compliance Division ensures compliance of Internal, Service Excellence, Effective Cash Management
External and Bangladesh Bank (BB) Inspection Reports etc; training programs were also designed for the
on Head Office, Branches and Core Risks Areas. newly formed Customer Sales & Service Officers
It arranges special Board Meetings for review and (CSSO) and Service Settlement Officers (SSO).
discussion of the BB Comprehensive Inspection Report • Preventive measures have been ensured at all
and maintains constant liaison with the Central Bank on branches as precaution against risks of fraud
compliance issues.
related to banking operations.
Monitoring Division screens operational activities of the • Awareness build up activities continued during the
Branches through Internal Control tools e.g. DCFCL, year as an on-going exercise to prevent occurrence
LDCL and QOR and summarizes the findings and reports
of any operational lapses.

88 | AB Bank | Annual Report 2020

Covid-19 pandemic initiatives: • Implement HR Systems and Practices.
• A Central Rapid Response Team was formed at • Create awareness of our competitive advantage,
Head Office and also at each Region to respond working with teams from different backgrounds as
to any emergency health related issue of any an integrated AB Family.
employee.
• Increase performance along with training and
• Commenced delivering limited banking services development.
from March 29, 2020. In line with Bangladesh
• Employee Motivation through Reward and
Bank regulations, a limited number of branches
Recognition (Promotion, Increment, Incentives,
were kept open and a list of such branches was
etc.) on the basis of Performance, Employee
circulated and updated on daily basis on ABBL
Engagement Events, skill and competency
website and Facebook page for Customers’
development.
convenience. SMS Notifications in this regard
were sent to Customers. SMS were also sent to • Develop a work environment in which employees
Customers advising them to make use of ATMs, will choose to be motivated / contributing,
Cards and Internet Banking as alternative channels • Manpower planning through right-sizing and
to avail banking services during lockdown period. Assessment Strategy aligned with mission, goals,
• Arranged Cash Pick up service from our Customers’ and organizational objectives and strategic plans
residence/office within Dhaka City. and budgets.

Department of Human Resource Management & • Identifying high-value talent as well as succession
planning as a key element of business continuity
Development
strategy.
AB HR ensures that the Bank’s employees are equipped
with the necessary competencies and commitment
to serve our Customers and that, to its support, the Financial Institutions & Treasury
appropriate culture and climate are in place. HR The strategic function of any Treasury Division is effective
formulates strategies to develop core competencies of management of such risks as Liquidity Risk, Interest Rate
our employees, valuing their perceptions and enabling Risk and Foreign Exchange Risk. Being an integrated
them to engage and contribute positively to our Bank’s Treasury unit, AB Bank Treasury is engaged in managing
success. these risks within the laid down different internal policies
and guidelines of Bangladesh Bank. Functions of Treasury
AB Bank has created a diverse workforce which provides Division are divided among ALM desk, Fixed Income
a secure and equal opportunity work environment for all desk, Money Market desk, Foreign Exchange desk and
its employees. Primary Dealership (PD) desk. Core responsibility of
Treasury operations is the maintenance of statutory
requirements i.e. CRR, SLR and Liquidity Ratios. In the
process of liquidity risk management, Treasury arranges
fund both in Local Currency and Foreign Currency.
As an interest rate risk manager, Treasury focuses on
maturity management of both Loans and Deposits in line
with Bank’s risk appetite. As a Primary Dealer, AB Bank
performs its responsibility as an underwriter to Govt.
securities. AB Bank Treasury is capable of providing all
possible treasury solutions through an array of treasury
products at better prices and superior services with a
dynamic and innovative work force. Treasury has been
performing consistently well over the last couple of years
with respect to contribution to Bank’s bottom line.
Human Resources Strategies
Highlights of 2020
• Foster High Performance Work culture by
effective Performance Management System & Job • Interest Income on Money Market Products stood
allocation delegation, constant focus on serving at BDT 279.80 million in 2020 compared to BDT
Customers in each and every horizon. 457.20 million in 2019.

AB Bank | Annual Report 2020 | 89

 • Investment Income increased to BDT 5,969.50 relationship with various exchange houses. AB is
million in 2020 from BDT 2,484.80 million in 2019. maintaining its focus on preserving its high standard of
customer service through the existing Branch network
• Income from Foreign Exchange decreased to BDT and agents. A dedicated “Remittance Hub” backed
270.00 million in 2020 compared to BDT 415.60 by advanced technology platform helps expanding
million in 2019. the Bank’s service to the doorstep of the customers.
Corporate clients of AB Bank continues to remain as a
Financial Institutions major source of its foreign currency. Bank is also trying to
AB Bank’s Financial Institutions (FI) Division is mainly broaden its base through solicitation of indigenous export
engaged in expanding and maintaining correspondent clients. Total remittance at the end of the year 2020 was
banking relationships with Local and Foreign Banks, USD 215 million compared to USD 270 million in 2019.
Financial Institutions and Exchange Houses. AB’s
Overseas Operations
Foreign Correspondent relationship centres around 334
Correspondents which covers most of the important Mumbai Branch
Banks and Financial Institutions in the world. This strong
Since its inception AB Bank Mumbai Branch, has remained
platform helps expand the Bank’s international trade
engaged in handling of Letters of Credit and documents
business and provide better customer service to its
of export from India to Bangladesh in addition to Retail
Customers.
Banking activities. The Branch also provides Advising,
Confirmation, Negotiation and Bill Discounting facilities
International Trade
to its Customers.
During 2020, Import and Export business of AB Bank has
experienced negative growth compared to previous year At present, our Mumbai Branch is maintaining VOSTRO
mainly due to COVID-19 related disruptions. accounts of 44 Bangladeshi Banks. Mumbai Branch’s
Operating Profit for the year-end of 2020 was INR 21.33
Import Business has decreased by 31.07% to BDT 3,265 Million.
crore in 2020 from BDT 4,737 crore in 2019. Items of
Highlights of Mumbai Branch Business
Import were mainly industrial raw materials, food items,
INR in Million
chemicals, medicines, textiles, capital machinery etc.
Particulars 2020 2019 2018
Export Business has also experienced a negative growth Total Assets 2,914.70 2,576.59 2,548.48
15.08% in the year 2020 compared to the previous year.
Total Loans and Advances 468.00 566.93 750.24
Total Export was BDT 4,680 crore in 2020 as against
BDT 5,511 crore in 2019. Items of Export were mainly Total Deposits 1,827.52 1,451.26 1,437.48
frozen fish, readymade garments, knitwear and other CRAR – Overall 36.65% 36.51% 33.05%
indigenous products. CRAR – Tier 1 36.25% 36.30% 32.76%
CRAR – Tier 2 0.40% 0.21% 0.28%
FI Marketing
Fee based income to
FI Marketing Team facilitates trade business activities 82.24% 82.73% 82.99%
Total income
originating with different Banks in Bangladesh. FI Return on Total Assets 1.50% 3.60% 3.86%
Marketing Team procures foreign trade related business
i.e. Reimbursement Authorities/Payment Instructions,
Operating results of Mumbai Branch
Advising of Documentary Credits and Adding INR in Million
Confirmation to L/Cs of different Banks in Bangladesh
Particulars 2020 2019 2018
on behalf of ABIFL, Hong Kong and AB Mumbai Branch.
During the year 2020, our FI Marketing Team collected Operating Profit 21.33 159.28 178.3
a good number of Reimbursement Authorities/Payment Profit after Tax (PAT) 41.14* 92.15 87.65
Instructions and provided support towards to our
Mumbai Branch, India and ABIFL, Hongkong enable them Return on Assets (%) 1.50 3.60 3.86
to Advise a significant number of L/Cs from different Return on Equity (%) 4.15 9.59 9.30
Commercial Banks in Bangladesh.
*Reversal of excess tax provision of INR 19.41 million.
Remittance Initiatives
AB has introduced a state-of-the-art API enabled
remittance software to Augment the Bank’s remittance
operation. AB has strengthened its existing remittance

90 | AB Bank | Annual Report 2020

Credit Risk Management (CRM) support for effective risk management. In addition, the
CRM Division manages the credit risks of the Bank as per Department also provides relevant MIS to Management
the CRM Policy formulated in accordance with guidelines, and the Board for facilitating strategic decisions.
manuals and other related circulars issued by Bangladesh
Corporate Social Responsibility (CSR)
Bank from time to time. The Division implements
specific risk mitigating tools that include understanding AB believes that Corporate Social Responsibility (CSR) is
customers [KYC], their past track record, financial the first and foremost means to contribute to the society
soundness, management ability, outlook of business and for improving the quality of lives of people, particularly
industry, collateral arrangement etc. AB has diversified for that who are underprivileged and less fortunate in
its credit portfolio into Corporate, SME and Retail. There terms of basic needs such as food, health, education etc.
are separate policies for each such segment with clearly Besides addressing the basic social needs of the under
defined tools for risk management in line with exposure, privileged people of the country, AB believes that CSR can
purpose, type, industry etc. A uniform Credit processing be a genuine platform to address growing environmental
matrix is in place which has been disseminated to the concerns also. CSR is a self-regulating business model
Branch level. Clear segregation of Credit Relationship and that helps a company be socially accountable - to itself,
Credit Administration streams across the Bank has been its stakeholders, and the public. AB Bank feels obligated
established to ensure effective credit risk management. towards the community in which it operates. It has long
This setup has also ensured sound practices in overall been active in a wide range socially responsible initiatives.
credit management viz. credit processing/appraisal,
The Bank promotes the country’s rich heritage of arts,
approval, documentation, disbursement, monitoring
culture and sports. The Bank always responded to the
and control. The Division regularly reviews and updates
crying needs of the society and to stood beside the affected
Credit Risk Management Policy and Lending Guidelines in
ones in times of national crisis.
line with the regulatory guidelines.
In 2020, the Bank contributed BDT 17.01 crore as a part
Credit Administration Management (CAM) of its Corporate Social Responsibility.
Credit Administration Management safeguards the total
asset book of the Bank. This department is focused Risk Management Division (RMD)
in complying with all post-approval credit processes Risk Management acts as one of the main operational
relating to Corporate SME and Retail loans which includes activities in every sphere of operations for any bank. It
documentation, monitoring transactions and reporting. is the fundamental to any bank that it should ensure its
In carrying out its responsibilities it keeps continuous profitability and soundness. It also serves as an essential
liaison with Business, Risk Management and senior Branch auxiliary tool to board strategic plans towards achieving
Managers and of course with the Senior Management and bank’s overall objectives. AB Bank recognizes the need
the Board. for risk management to facilitate strategic and operational
planning. In accordance with the spirit of Bangladesh Bank
The Division helps the bank to manage the level of credit
guidelines, Risk Management Division (RMD) is equipped
risk exposure by segregating its functions under three
with adequate resources and infrastructure. The principal
broad heads - Credit Administration, Monitoring and
objective of this Department is to protect the organization
handling of classified loans. The Core activities of the
from unexpected losses caused by unfavorable downgrade
Division are to supervise new Loan disbursement, overview
in financial areas and reputational issues through early flag
the loan documentation, monitoring and controlling of
raising, and there-by to ensure sustainability in growth.
loan delinquency and reporting the status to the Board
The RMD is constantly considering and applying efforts to
of Directors, Senior Management, Business Divisions and
develop organization wide Risk Management Structure and
Branches to take remedial steps and initiate appropriate
processes to rip out its outcomes in all areas of the Bank in
actions to control the delinquency. compliance with Bangladesh Bank’s risk related directives
Department of Accounts & Finance (A&F) and procedures.

Department of Accounts & Finance works towards RMD has been performing an effective role in leading the
achieving high standards befitting the institution. It also Supervisory Review Process and holding SRP-SREP dialogue
ensures operations of the Bank within the compliance on ICAAP. RMD also provides the Bank’s Risk Appetite
framework. Framework in the light of Bank’s strategic plan comprising
of Key Risk Indicators (KRIs) from different segments of the
The Department primarily focuses on developing and Bank. It also provides training to AB Bank officials on Risk
maintaining a service-oriented culture. It performs the key Management issues focusing on Management Action Triger
roles of controllership, budgeting, forecasting, financial
(MAT), Comprehensive Risk Rating (CRR) with a view to
analysis, business performance monitoring, decision
enhancing the level of understanding on risk management,
support, procurement (Payment Cell) and provides
its importance and its application.

AB Bank | Annual Report 2020 | 91

 AB Subsidiaries Performance of ABIL
AB International Finance Limited (ABIFL), Hong Particulars 2020 2019 2018
Kong, a wholly owned subsidiary of AB Bank Limited
Number of Clients
started its operation in 1995. ABIFL is primarily engaged 2,326 2,349 2,388
(in number)
in Advising, Adding Confirmation to Documentary Credits, Margin Loan provided to
6,957 6,752 6,781
Negotiating and Discounting of Bills under Letters of Clients (BDT in million)
Credit etc. ABIFL’s performance in 2020 is presented Operating Income
175 57 308
below: (BDT in million)
Operating Profit
Particulars 2020 2019 2018 100 9 264
(BDT in million)
Profit after Tax (PAT)-HKD
6.84 10.18 9.57 Net Profit (BDT in million) (4) (58) 17
Million
Return on Assets (%) 6.38 9.82 10.22 Earnings Per Share (BDT) (0.006) (0.089) 0.027

Return on Equity (%) 38.81 53.56 53.72

*Restated EPS

Earnings per Share-HKD 68.45 101.76 95.69 AB Securities Limited (ABSL)

AB Securities Limited (ABSL), a wholly owned subsidiary
AB Investment Limited company of AB Bank Limited, was incorporated on 24th
AB Investment Limited (ABIL), a wholly owned subsidiary December 2009 and started its operation on 2nd August,
company of AB Bank Limited, was incorporated on 24th 2010. ABSL is a corporate TREC Holder of both Dhaka
Stock Exchange Limited (DSE) and Chittagong Stock
December 2009 and it started its operation on 10th
Exchange Limited (CSE).
March, 2010. ABIL provides the following services:
The number of clients of ABSL is 3,117 and it comprises
of Local Individual & Institutional clients along with NRBs
and Foreign Individuals. ABSL also acts as Agent Broker
of AB Investment Limited.

Currently, ABSL is operating from its Head Office in Dhaka

and two branch offices in Chittagong & Sylhet. In the year
2020, total turnover of ABSL was approximately BDT 46.29
billion.

For Foreign Nationals and Non-Resident Bangladeshis,

ABSL provides one stop stock broking services including
assistance in opening Foreign Currency (FC) Account
& Non-Resident Investor’s Taka Account (NITA), BO
Account opening and trading at DSE and CSE.

Performance of ABSL

Particulars 2020 2019 2018

Number of Clients 3,117 2,942 3,385
Margin Loan provided to Clients
919 931 882
(BDT in mn)
The number of clients of AB Investment Limited is 2,326
Operating Income (BDT in mn) 130 28 125
and it comprises of Local Individual & Institutional
clients along with NRBs and Foreign Individuals. ABIL Operating Profit (BDT in mn) 70 (20) 80
has 7(seven) panel brokers to conduct trading on behalf Earnings Per Share-EPS (BDT) 0.16 0.01 0.15
its clients and also to manage its own portfolio. Total
portfolio of ABIL was more than Tk. 6.35 billion in 2020 Total Turnover-Trade (BDT in bn) 46 18 20
which is 0.14% of total market capitalization. Currently,
ABIL operates from its Head Office in Dhaka and two
branch offices in Chittagong & Sylhet.

92 | AB Bank | Annual Report 2020

Cashlink Bangladesh Limited (CBL) Performance of Cashlink
BDT in lac
CBL is a subsidiary of AB Bank Limited. CBL was
incorporated on 24th September 2008 with the following Particulars 2020 2019 2018
objectives: Total Operating Income 40.31 135.55 36.89
• To carry on the business of providing integrated Total Operating Expense 4.19 4.53 5.08
electronic financial payment to AB and other Profit After Tax 24.38 127.37 31.82
member Banks; Total Shareholder’s Equity 769.04 744.66 617.29
• To do Transaction Processing solutions in Total Asset 856.41 823.94 791.88
Bangladesh, including coordination and
deployment of independent branded automated Arab Bangladesh Bank Foundation (ABBF)
teller machines (ATM); Arab Bangladesh Bank Foundation (ABBF) is a platform
• To facilitate Electronic Fund Transfer through for philanthropic activities of the Bank.
Points of Sale (EFT POS) and provide pre-paid
Card;
• Debit Card, Credit Card processing services, etc;
• To facilitate E-commerce facility to clients.

Financial Performance Highlights:

As one of the most highly regulated industries in the world, investors have some level of assurance in the soundness of the
banking system. As a result, investors can focus most of their efforts on how a bank will perform in different economic envi-
ronments. In 2020, as with other sectors, The Banking Sector as a whole experienced adverse effect of COVID 19 pandemic.
Within these challenging economic and business environment, the Bank registered following financials:
BDT in crore

Consolidated Change Solo Change

Particulars
2020 2019 % 2020 2019 %
Interest Income/Profit on Investments 2,442.69 2,695.42 -9% 2,429.15 2,671.55 -9%
Interest Paid/Profit on Deposits and Borrowings, etc. 2,017.16 1,886.85 7% 2,013.46 1,884.68 7%
Net Interest Income 425.53 808.57 -47% 415.68 786.87 -47%
Other Income 825.90 496.84 66% 798.95 501.53 59%
Operating Expenses 586.21 658.29 -11% 567.93 643.43 -12%
Operating Profit 665.22 647.11 3% 646.70 644.97 0.27%
Provisions for Loans & Others 531.99 510.85 4% 514.49 514.05 0.09%
Profit before Taxation 133.23 136.26 -2% 132.21 130.92 1%
Provisions for Tax 93.80 123.93 -24% 93.07 114.14 -18%
Profit after Tax 39.43 12.33 220% 39.14 16.77 133%
Earnings Per Share (BDT) 0.50 0.15 0.34 0.49 0.21 0.28

From April 2020, Loan Interest Rate caps were fixed by Bangladesh Bank. As a result, the Bank registered a negative growth in
Net Interest Income. However, the Bank was able to increase Investment Income by more than 102% than the previous year,
which has contributed to the Other Income segment. Operating Expenses of the Bank also decreased appreciably by 12% in
the same period. These resulted in the Bank posting in 2020, a profit after Tax of BDT 39.43 crore and BDT 39.14 crore on Con-
solidated & Solo basis respectively. The three-fold increase in the Consolidated figure is commendable against the background
of the pandemic.

AB Bank | Annual Report 2020 | 93

 Asset Quality:
BDT in crore
Consolidated Change Solo Change
Particulars
2020 2019 % 2020 2019 %

Total Loans and Advances 28,290.09 26,438.50 7.00% 27,482.99 25,651.25 7.14%

Unclassified 23,674.63 21,749.45 8.85% 22,867.53 20,962.20 9.09%

Standard 22,010.99 20,185.80 9.04% 21,203.89 19,398.55 9.31%

Special Mention Account 1,663.64 1,563.65 6.39% 1,663.64 1,563.65 6.39%

Classified 4,615.46 4,689.05 -1.57% 4,615.46 4,689.05 -1.57%

Sub-standard 234.57 221.97 5.67% 234.57 221.97 5.67%

Doubtful 309.68 325.47 -4.85% 309.68 325.47 -4.85%

Bad Loss 4,071.21 4,141.61 -1.70% 4,071.21 4,141.61 -1.70%

Though classified loans have been reduced by 1.49% in 2020, the main challenge of the Bank remains the same -
maintaining the quality of its assets. At the end of 2020, classified loan position of the Bank was 16.79%, which affects
the profitability of the Bank adversely. Prime focus set by the Board to improve the asset quality, recover classified and
written off loans and restructure the loan portfolio in order to improve the profitability.

Capital Position:
BDT in crore
Consolidated Change Solo Change
Particulars
2020 2019 % 2020 2019 %

Risk Weighted Assets 34,461.71 33,421.14 3.11% 34,105.67 33,137.52 2.92%

Credit Risk 31,751.21 30,292.97 4.81% 31,556.50 30,131.81 4.73%

Market Risk 835.96 806.09 3.71% 726.80 692.12 5.01%

Operational Risk 1,874.54 2,322.09 -19.27% 1,822.36 2,313.59 -21.23%

Regulatory Requirement 12.50% 12.50% 12.50% 12.50%

Capital Requirement 4,307.71 4,177.64 4,263.21 4,142.19

Capital Maintained 3,905.10 3,539.83 10.32% 3,696.60 3,354.71 10.19%

Tier-1 2,067.39 1,981.36 4.34% 1,957.01 1,871.16 4.59%

Tier-2 1,837.70 1,558.48 17.92% 1,739.59 1,483.55 17.26%

Capital deficit (402.62) (637.81) (566.61) (787.48)

Capital to Risk Weighted Asset Ratio
11.33% 10.59% 10.84% 10.12%
(CRAR)
Tier-1 6.00% 5.93% 5.74% 5.65%
Tier-2 5.33% 4.66% 5.10% 4.48%

At the end of 2020, the Bank was able to maintain CRAR at 11.33% and 10.84% on Consolidated and Solo basis
respectively against the Regulatory requirement of 12.50% (10% minimum and 2.50% Capital Conservation Buffer).
Risk Weighted Assets of the Bank increased by 3.11%, whereas Capital increased approximately by 10.32%. The Bank is
aiming to strengthen its capital base by issuing Tier-I Capital through Rights Issue and Perpetual Bond. Simultaneously,
the Bank is also moving towards reducing the Risk Weighted Assets level.

94 | AB Bank | Annual Report 2020

Cash Flow Position
BDT in crore
Consolidated Change Solo Change
Particulars
2020 2019 % 2020 2019 %
Net cash flow from/(used in) operating activities (367.19) 2,864.75 -112.82% (382.93) 2,870.27 -113.34%
Net cash flow from/(used in) investing activities (178.80) (1,855.22) 90.39% (194.24) (1,846.35) 89.48%
Net cash flow from/(used in) financing activities 366.02 (139.92) 361.59% 366.02 (139.92) 361.59%
Net decrease in cash (179.97) 869.60 -120.63% (211.15) 884.00 -123.89%
Net Operating Cash Flow Per Share
(4.61) 35.99 -40.60 (4.81) 36.06 (40.87)
(NOCFPS) (BDT)

Major component of Net Cash Flow from Operating Activities was Operating Profit after elimination of the effect of
Depreciation and Provision and Non-cash items in Profit and Loss Account. Changes in Operating Assets and Liabilities i.e.
changes in Loans, Deposits and Short Term Borrowing mainly affected the Cash Flow from Operating Activities.

Key Ratio

Particulars 2020 2019

Capital to Risk Weighted Assets Ratio 10.84% 10.12%
Loan Deposit Ratio 85.26% 84.28%
Cost Income Ratio 46.76% 41.35%
CL Ratio 16.79% 18.28%
Return on Investment (ROI) 10.34% 6.07%
Return on Assets (ROA) 0.10% 0.05%
Return on Equity (ROE) 1.65% 0.74%
Assets Utilization Ratio 78.62% 77.80%
Operating Profit Per Employee (Lac/Taka) 29.37 29.18

Shareholding Pattern

Shareholding pattern of the Bank is disclosed as below following the requirements of Section 1.5 (xxiii) of BSEC
Corporate Governance Code No. BSEC/CMRRCD/2006-158/207/Admin/80, dated 03 June 2018:

a) Parent / Subsidiary / Associated Companies and other related parties: Not Applicable
b) Shares held by Directors including nominating Individual and Institutions, Chief Executive Officer, Company
Secretary, Chief Financial Officer and Head of Internal Audit and their Spouses and Minor Children are as follows:
Status as of December 31, 2020;

Name of the Directors, CEO, CS, No. of Name of the No. of

Status % %
CFO and HIAC Shares Spouses Shares
Mr. Muhammad A. (Rumee) Ali
Chairman 79,480,564 9.9845% Ms. Tamara R. Ali - -
Nominated by Pacific Traders Ltd.
Mr. Feroz Ahmed Director 15,730,196 2.0749% Ms. Salvana Ahmed 325,960 0.0409%
Mr. Shajir Ahmed
Nominated by Hexagon Chemical Director 21,804,184 2.7391% Ms. Fahmida Islam - -
Complex Ltd
Mr. Khairul Alam Choudhury Ms. Mariya Rakhi
Director 77,865,692 9.7817% - -
Nominated by Pacific Industries Ltd Chowdhury
Mr. Shafiqul Alam Independent Director - - Ms. Najma Shafiq - -

AB Bank | Annual Report 2020 | 95

 Name of the Directors, CEO, CS, No. of Name of the No. of
Status % %
CFO and HIAC Shares Spouses Shares
Ms. Nadira
Mr. Kaiser A. Chowdhury Ex-Independent Director - - - -
Chowdhury
President & Managing
Mr. Tarique Afzal - - Ms. Ornita Afzal - -
Director
Mr. K.M. Mohiuddin Ahmed Chief Financial Officer - - Dr. Khairun Nessa - -

Head of Internal Control and

Mr. Munir Ahmed - - Ms. Tahmina Begum - -
Compliance (In-charge)

Company Secretary (In-

Mr. Md. Jasim Uddin, ACS - - Ms. Jannatul Bakia - -
charge)

• Bangladesh Bank on January 20, 2021 approved the reappointment of Mr. Md. Maqsudul Huq Khan, Director, nominated
by Emkay Holdings Limited.
• Mr. Kaiser A. Chowdhury resigned in the Bank’s 702nd Board Meeting held on January 18, 2021.
• As on January 20, 2021 Sponsor & Directors total shareholding - 31.67% of the total shares of the Bank.
c) Shares held by top five salaried employees other than the Directors, Chief Executive Officer, Company Secretary,
Chief Financial Officer, and Head of Internal Audit.

Sl. No Employee Name Designation No. of Shares

1 Mr. Sajjad Hussain Additional Managing Director -
2 Mr. Reazul Islam Deputy Managing Director -
3 Mr. Mahmudul Alam Deputy Managing Director -
4 Mr. Abdur Rahman Deputy Managing Director -
5 Mr. Syed Mizanur Rahman Sr. Executive Vice President -

d) Shareholders holding ten percent or more voting interest in the company: Nil

Dividend
The Board in its 708th Meeting held on April 27, 2021, recommended 5.00% Stock Dividend to all the Shareholders which
is subject to Shareholders approval in the 39th Annual General Meeting scheduled to be held on Thursday, June 10,
2021 through Digital Platform. The Record date has been set at May 19, 2021 (Wednesday)

Board has recommended a Stock Dividend in order to strengthen the Capital base of the Bank which would go towards
supporting the Bank’s business growth and further comply with the dictates of Bangladesh Bank DOS Circular No: 01
dated February 07, 2021 on Dividend Policy for Banks for the year 2020.

In compliance with Code no:1.5 (XXI) of the Corporate Governance Code -2018 issued by Bangladesh Securities and
Exchange Commission, the Board confirms that no bonus share or stock dividend has been declared as interim dividend.

In Compliance with BSEC Directives dated January 14, 2021, year wise break-up of Unpaid Dividend as on December
31, 2020 are provided below:

Sl.No. Year Amount in Taka

1 2014 144,402.76
2 2015 97,290.09
3 2016 114,373.84
4 2019 97,619.53
Total 453,686.22

96 | AB Bank | Annual Report 2020

Board of Directors
At present, AB Bank’s Board comprise of 7 (seven) members including the President and Managing Director. The
Board also has three Committees in operation viz. Executive Committee, Audit Committee and Risk Management
Committee in compliance with Bangladesh Bank BRPD Circular No: 11 dated October 27, 2013 on “Formation &
Responsibilities of Board of Directors of a Bank Company”. The Committees operate on the basis of respective
TOR’s set by the Board or Bangladesh Bank as the case may be.

Present composition of the Board as on May 25, 2021 is as below:

1. Mr. Muhammad A. (Rumee) Ali, Chairman, nominated by Pacific Traders Limited
2. Mr. Feroz Ahmed, Director
3. Mr. Shajir Ahmed, Director, nominated by Hexagon Chemical Complex Limited
4. Mr. Khairul Alam Choudhury, Director, nominated by Pacific Industries Limited
5. Mr. Shafiqul Alam, Independent Director*
6. Mr. Md. Maqsudul Huq Khan, Director, nominated by Emkay Holdings Limited**
7. Mr. Tarique Afzal, President and Managing Director

*Bangladesh Bank, in terms of Letter No: BRPD(R-2)651/9(1) DL/2020-7137 dated September 07, 2020, approved
the appointment of Mr. Shafiqul Alam as an Independent Director and his brief Resume is as under:

Mr. Shafiqul Alam joined AB Bank as an Independent Director with effect from September 7, 2020. Mr. Alam, a
seasoned banker having 40 years of banking experience, served in different Senior Management positions in local
and multinational banks. He obtained his M.Sc degree from the University of Dhaka. Mr. Alam started his career
with ANZ Grindlays Bank (Bangladesh) in 1980, in which institution he continued until 2001. He served Prime
Bank Limited, First Security Islami Bank Limited and United Commercial Bank Limited holding senior positions and
during 2013-2019 he served Jamuna Bank Limited as its Managing Director & CEO.

**Bangladesh Bank, in terms of Letter No: BRPD(R-2)651/9(1) DL/2021-752 dated January 20, 2021, approved
the appointment of Mr. Md. Maqsudul Huq Khan as Director and his brief resume is as under:

Mr. Maqsudul H. Khan is a Supply Chain and Compliance professional. Currently he is working as General Manager,
Supply Chain & Commercial Division of Millennium Automotive Group. Prior to holding this position he had
served Bureau Veritas, a renowned French multinational conglomerate for about a decade. He has a successful
professional career in Operations, Compliance and Legal Affairs. He also worked as the Head of International
Trade Division (ITD) of a multinational organization (BVQI) which is the global leader in Quality Assurance, Health,
Safety and Environmental Solutions.
Maqsudul holds an International Diploma in Supply Chain Management from ITC-UNCTAD/WTO, Geneva. Prior
to obtaining Bachelor of Laws (LLB) and Masters in Business Administration (MBA), he completed the Certified
Supply Chain Professional (CSCP) course from American Production and Inventory Control Society (APICS).

Mr. Md. Maqsudul Huq Khan is also the Member of the Audit Committee and the Risk Management Committee of
the Bank. He does not hold Directorship in any other Company.

Subsequently to the 38th Annual General Meeting, Mr. Kaiser A. Chowdhury, Independent Director, resigned from
the Board in cognizance of Bangladesh Bank Letter regarding the appointment of Independent Directors and
Board approved the same on January 18, 2021.

AB Bank | Annual Report 2020 | 97

 Board Meeting/Committees Meeting and Attendance
Board Meeting
17 (seventeen) Board Meetings were held during the year 2020. Below is the Table showing details of attendance of
Directors in the Meetings during their respective tenure:

Number of Meeting
Name of Directors Designation
Held Attended
Mr. Muhammad A. (Rumee) Ali Chairman 17 17
Mr. Feroz Ahmed Director 17 15
Mr. Shajir Ahmed Director 16 15
Mr. Khairul Alam Choudhury Director 17 17
Mr. Kaiser A. Chowdhury* Ex-Independent Director 17 17
Independent
Mr. Shafiqul Alam** 08 08
Director
Mr. Md. Maqsudul Huq Khan*** Director 03 03
Mr. Khairul Alam Choudhury Director 17 17
President and Managing
Mr. Tarique Afzal 17 17
Director
Total number of Board Meetings held = 17 (seventeen)

*Mr. Kaiser A. Chowdhury, Independent Director resigned in the 702nd Board Meeting held on January 18, 2021.

** Mr. Shafiqul Alam was appointed as an Independent Director on September 07, 2020.

*** Mr. Md. Maqsudul Huq Khan was appointed as a Director on June 28, 2020 and resigned in the 38th AGM held on
September 02, 2020 and was re-appointed as Director in the 702nd Board Meeting held on January 18, 2021.

Audit Committee Meeting

09 (Nine) Meeting of the Audit Committee were held during the year 2020. Below is the Table showing details of
attendance of Directors in the Meetings during their respective tenure:

Number of Meeting
Name of Directors Status
Held Attended
Mr. Kaiser A. Chowdhury*
Ex-Chairman 09 09
(Up to 18.01.2021)
Mr. Shajir Ahmed Member 09 09
Mr. Shafiqul Alam **
Member 04 04
(From 13.10.2020)
Mr. Khairul Alam Choudhury
Member 05 05
(Up to 18.08.2020)
Total number of Audit Committee Meetings held = 09 (Nine)

* Mr. Kaiser A. Chowdhury, Independent Director resigned in the 702nd Board Meeting held on January 18, 2021.

** Mr. Shafiqul Alam was elected as Member of the Committee in the 695th Board Meeting held on October 13, 2020.
He was also elected as Chairman of the Committee in the 703rd Board Meeting held on January 28, 2021.

98 | AB Bank | Annual Report 2020

Risk Management Committee Meeting
04 (Four) Meetings of the Risk Management Committee were held during the year 2020. Below is the Table showing
details of attendance of Directors in the Meetings during their respective tenure:

Number of Meeting
Name of Directors Status
Held Attended
Mr. Shafiqul Alam*
Chairman 02 02
(From 13.10.2020)
Mr. Kaiser A. Chowdhury** Ex-Chairman 04 04
Mr. Feroz Ahmed
Member 02 02
(From 10.10.2020)
Mr. Shajir Ahmed
Member 02 02
(Up to 02.09.2020)
Total number of Risk Management Committee Meetings held = 4 (four)
* Mr. Shafiqul Alam was appointed as Independent Director on September 07, 2020 and elected as the Chairman of the
Committee in the 695th Board Meeting held on October 13, 2020.
** Mr. Kaiser A. Chowdhury, Independent Director resigned in the 702nd Board Meeting held on January 18, 2021

Remuneration paid to Directors

During the year 2020, total remuneration paid to the Directors including Independent Director was Tk.866, 800.00
(Taka eight lakh sixty-six thousand eight hundred only). In 2019, it was Tk.12,73,200.00 (Taka twelve lakh seventy three
thousand two hundred only).

Election of Directors
Bangladesh Bank on January 20, 2021 approved the appointment of Mr. Md. Maqsudul Huq Khan, Director nominated
by Emkay Holdings Limited who will retire in the ensuing 39th Annual General Meeting in compliance with regulation 86 of
Schedule-I of the Company Act 1994. Mr. Khan is also eligible for reappointment if nominated by Emkay Holdings Limited.

According to the Articles of Association of the Bank and Regulation 79 of Schedule-I of the Companies Act 1994, at each
Annual General Meeting, at least one third of the Directors other than the President & Managing Director shall retire. Mr.
Feroz Ahmed, Director and Mr. Khairul Alam Choudhury nominated by Pacific Industries Limited will retire in the ensuing
39th Annual General Meeting and eligible for reappointment. Mr. Feroz Ahmed submitted his intention for re-appointment
and Pacific Industries Limited has nominated Mr. Khairul Alam Choudhury as their representative to be re-appointed as
Director in the 39th Annual General Meeting of the Bank.

Mr. Shafiqul Alam, Independent Director, appointed by the Board and subsequently Bangladesh Securities and Exchange
Commission and Bangladesh Bank has accorded their consent on August 26, 2020 and September 07, 2020 respectively.
His appointment will be placed to the shareholders of ensuing 39th AGM of the Bank for approval in compliance with
Corporate Governance Code of BSEC.

Resignation of Director
In cognizance of Bangladesh Bank Letter regarding appointment of Independent Directors Mr. Kaiser A. Chowdhury
resigned from the Board on January 18, 2021.

Protection to Minority Shareholders

AB Bank operates in accordance with the Articles of Association of the Bank and all applicable laws and regulations
of the land, to ensure the best interest of all Shareholders including Minority Shareholders. The Bank committed to
ensure sound governance practices based on integrity, openness, fairness, professionalism and accountability in building
confidence among stakeholders. The Bank strongly believes in equitable treatment of every Shareholder. Any complaint
received at the AGM or through the year from any Shareholder is resolved on a priority basis, even as we are committed
to address grievances/queries within a timeframe.

AB Bank | Annual Report 2020 | 99

 Related Party Transaction Disclosure
A party is related to the company if
• directly or indirectly through one or more intermediaries, the Party controls, or is controlled by, or is under common
control with, the Company; has an interest in the Company that gives it significant influence over the Company; or
has joint control over the Company;
• the Party is an Associate;
• the Party is a Joint Venture;
• the Party is a member of the key management personnel of the Company or its Parent;
• the Party is a close member of the family of any individual referred to in (i) or (iv);
• the Party is an entity that is controlled, jointly controlled or significantly influenced by or for which significant voting
power in such entity resides with, directly or indirectly, any individual referred to in (iv) or (v); or
• the Party is a post-employment benefit plan for the benefit of employees of the Company, or of any entity that is a
related party of the Company.
a) Significant contracts where the Bank is a Party and wherein Directors have interest:

Name of contract Name of the party Name of Director and related by Relationship
Lease agreement with Mohakhali Pacific Industries Ltd Mr. Khairul Alam Choudhury Nominated Director of Pacific
and Savar Branch of AB Bank Industries Ltd in the Board of AB
Limited Bank
Lease agreement with ABBL Elite International Ltd Mr. Feroz Ahmed Common Director

Related party transactions:

Name of related party Relationship Nature of transaction Amount in BDT

Pacific Industries Ltd Nominated Director of Office Rent 15,270,390
Pacific Industries Ltd in
the Board of AB Bank
Elite International Ltd. Common Director Office Rent 2,484,000

Loans/placement given to subsidiary of the Bank:

Sl. Name of the party Connection with party Nature of transaction Amount in BDT
01 AB Investment Limited 99.99% owned Subsidiary Loans and Advances 755,898,828
02 AB Securities Limited 99.91% owned Subsidiary Loans and Advances 167,548,156
03 AB International Finance Limited Fully owned (100%) Subsidiary Placement through OBU 964,604,550
Total loans/placement to subsidiary 1,888,051,534

Credit Rating
AB Bank was rated by ARGUS Credit Rating Services Limited (ACRSL) based on the financials of the Bank up to December
31, 2019 (audited) as well as for the period ended September 30, 2020 (unaudited) and other relevant quantitative and
qualitative information up to the date of rating declaration i.e. December 09, 2020.

The summary of their ratings are given below:

Credit Rating Current Previous

Long-Term * AA- A+
Short-Term ST-2 ST-2
Date of Rating December 09, 2020
Date of Validity December 08, 2021

* AA-: equivalent Bangladesh Bank Rating Grade 1

A+: equivalent Bangladesh Bank Rating Grade 2

100 | AB Bank | Annual Report 2020

Rating Description: Government of Bangladesh forecasts that the country’s
economy would grow by 7.40 percent in the current
AA- Investment grade. Very high credit quality fiscal year (FY21). World Bank predicts the growth will
and minimal expectation of credit risk. When be supported by a recovery in manufacturing, a rebound
assigned this rating indicates the obligor has in construction sector by accelerating public investment,
very strong capacity to meet its financial and robust service sector growth. Nonetheless, inclusive
obligations and is unlikely to be impacted growth is going to be a major challenge as benefits of the
adversely by foreseeable events. stimulus packages are likelier to be concentrated mostly
among large corporations rather than the small-medium
ST-2 High certainty of timely payment. Liquidity
enterprises, blue-collar workers and the middle class.
factors are strong and supported by good
fundamental protection factors. Risk factors
are very small. Gratitude
It is the privilege of the Members of the Board of Directors,
39th Annual General Meeting to express its appreciation and gratitude to all the valued
Sponsors and General Shareholders, Clients, Patrons
Shareholders whose names appeared in the Register and well-wishers for their unwavering support and co-
of Members of the Bank or the Depository System on operation extended to the Bank over the years. The
the Record Date i.e. May 19, 2021, Wednesday, shall be Board is also indebted to the Government of Bangladesh,
eligible to attend the Annual General Meeting (AGM) and Bangladesh Bank, BSEC, DSE, CSE, Registrar of Joint
also shall be entitled to receive the Dividend. Stock Companies and Firms and other related entities for
The 39th Annual General Meeting is scheduled to be held their continued guidance and support. The Board also
on June 10, 2021 (Thursday) through Digital Platform at takes this opportunity to recognize and appreciate the
04:00 p.m. effort and dedication of the frontliners including bankers
who are risking their lives for a greater cause during this
A Member entitled to attend and vote at the Annual pandemic.
General Meeting, can appoint a Proxy to attend and,
in the event of a poll, vote on its/his/her behalf. Proxy
Form duly stamped must be deposited at the Bank’s AB will remain committed to its declared Vision & Mission
Registered Office or through email at [email protected] at Statement and also towards creation of Shareholders’
least forty-eight hours before the time fixed for the Value. The Bank will also continue its endeavors to
meeting otherwise Proxy Form will not be treated as improve the lot of the teeming millions and accelerate its
valid. efforts to make positive contributions towards economic
and social development of the country.
Country Outlook
Despite the onslaught of the second wave of the ensuing
pandemic, the Bangladesh economy is showing some
positive signs. Remittance inflow increased by 33.5 per
cent between July 2020 and February 2021. Foreign
exchange reserves have also grown to a record US$44
billion by the end of February 2021. The Current Account Muhammad A. (Rumee) Ali
balance posted a healthy positive balance of US$4.3 Chairman
billion as on 2020.

AB Bank | Annual Report 2020 | 101

 MANAGEMENT DISCUSSION & ANALYSIS

Economic perspective
Global economic activity in 2020 was defined entirely amid COVID-19 pandemic and the decisions taken by nations to
respond to the crisis. Therefore, the global economy which appeared to be gradually strengthening at the start of 2020
after years of slow growth, found itself completely derailed as most countries began announcing stringent lockdown
measures and social distancing protocols at the very onset of the pandemic.

The year 2020 began with a cloud of uncertainty hanging over the horizon. The novel coronavirus was spreading in
Europe, the destination of over 60 percent exports from Bangladesh, after wreaking havoc in China, its largest trading
partner. Bangladesh felt the heat of a looming global crisis though the virus had not yet made its way into the country.
The recent fallout in global output growth due to coronavirus pandemic is being recognized as the worst and
unprecedented since the Great Depression of the 1930s. Like everywhere else, the Bangladesh economy too has had
to bear a substantial economic losses resulting insignificantly lower real GDP growth for FY20 of 5.24% that the targets
well as actual growth (8.15 percent) recorded in FY19. Annual average CPI-based general inflation stood at 5.65 percent
in FY 20, slightly up from the target (5.50 percent) ceiling as well as actual inflation of 5.47 percent in FY19. The annual
average non-food inflation, particularly concerning to medical care and health expenses, and disruption of supply chains
due to coronavirus pandemic were largely responsible for this higher inflation.

Performance of the Bank - Comparative analysis

Business Position
BDT in crore

Particulars 2020 2019 2018 2017 2016

Loans & Advances 27,483 25,651 24,107 22,965 21,877
Deposits 29,072 27,946 23,544 23,595 24,564
Export 4,680 5,511 7,345 7,511 7,605
Import 3,265 4,737 8,963 10,492 11,579
Remittance (USD) 21 27 33 30 25

Financial and operational performance

BDT in crore

Particulars 2020 2019 2018 2017 2016

Interest Income/profit on investment 2,429.15 2,671.55 1,946.75 1,756.70 1,891.40
Interest paid/profit on deposit & 2,013.46 1,884.68 1,755.74 1,489.69 1,607.70
borrowings etc
Net interest income 415.68 786.87 191.01 267.01 283.70
Other income 798.95 501.53 673.77 767.69 818.10
Operating expenses 567.93 643.43 557.27 587.09 599.86
Operating profit 646.70 644.97 307.51 447.61 501.94
Provisions for loans & others 514.49 514.05 251.91 463.41 301.73
Profit before Taxation 132.21 130.92 55.60 (15.80) 200.21
Provision for Tax 93.07 114.14 53.77 (18.76) 69.75
Profit after Tax 39.14 16.77 1.83 2.96 130.46
Earnings per share (Tk.) 0.49 0.21 0.02 0.04 1.64

102 | AB Bank | Annual Report 2020

Equity Position
BDT in crore
Particulars 2020 2019 2018 2017 2016
Paid-up Capital 796.04 758.13 758.13 758.13 673.90
Retained Earnings 568.66 581.72 590.52 601.19 680.96
Statutory Reserve 714.42 687.21 662.34 654.92 649.60
Other Reserves 369.57 257.00 254.07 262.87 307.02
Total 2,448.69 2,284.05 2,265.06 2,277.11 2,311.48

Cash Flow Movement

BDT in crore
Particulars 2020 2019 2018 2017 2016
Net cash flow from operating activities (382.93) 2,870.27 (681.27) (918.36) 2,045.86
Net cash flow from investing activities (194.24) (1,846.35) 226.47 166.69 (1,511.23)
Net cash flow from financing activities 366.02 (139.92) 264.90 (61.61) 21.68
Net operating cash flow peer share
(4.81) 36.06 (8.58) (11.54) 25.70
(NOCFPS)

Key Ratios
BDT in crore
Particulars 2020 2019 2018 2017 2016
Capital to Risk Weighted Assets Ratio 10.84% 10.12% 10.03% 10.80% 10.79%
Loan Deposit Ratio 85.26% 84.28% 91.09% 86.24% 83.67%
Cost Income Ratio 46.76% 41.35% 64.44% 56.74% 54.44%
Return on Investment (ROI) 10.34% 6.07% 9.58% 10.18% 13.50%
Return on Asset (ROA) 0.10% 0.05% 0.01% 0.01% 0.44%
Return on Equity (ROE) 1.65% 0.74% 0.08% 0.13% 5.68%
Assets Utilization Ratio 78.62% 77.80% 66.61% 85.86% 86.59%

a) Accounting policies and estimation for preparation of financial statements

The consolidated and separate financial statements of the Bank have been prepared for the year ended December
31, 2020 in accordance with the measurement and recognition requirements of International Accounting Standards
(IAS) and International Financial Reporting Standards (IFRS) which have replaced Bangladesh Accounting Standards
(BAS) and Bangladesh Financial Reporting Standards (BFRS) vide circular no. 1/1/ICAB-2017 of the Institute of
Chartered Accountants of Bangladesh, the accounting standard setting body for Bangladesh, dated 14 December
2017 for due period begins on or after 1 January 2018.

The financial statements cover a full set of financial statements which comprise of consolidated and separate
Balance Sheets, Profit or Loss Accounts, cash flow statements, statements of changes in equity, liability statements
and relevant notes and disclosures.

The financial statements have been prepared under historical cost convention, except investments categorized
under treasury securities in accordance with Bank Company Act,1991 (amendment up to 2018); BRPD circular no.
14 dated 25 June 2003, the Companies Act, 1994; the Securities and Exchange Ordinance 1969, Securities and
Exchange Rules 1987 and other laws and rules applicable for the Bank.

AB Bank | Annual Report 2020 | 103

 b) Changes in Accounting policies and Estimation:
There is no change in accounting policies and estimates during the year.

c) Issues related to the financial statements

In compliance with Bangladesh Securities and Exchange Commission (BSEC) notification BSEC/CMRRCD/2006-158/207/
Admin/80 dated June 03, 2018; Chief Financial Officer and the President & Managing Director of the Bank has given
their declaration to the Board regarding the authenticity of the Financial Statements.

In 182nd meeting of the Board Audit Committee, financial statements have been analyzed. After reviewing the
financials, Board Audit Committee recommended the Board for their approval. Accordingly, Financials Statements has
been approved by the Board of Director in its 708th meeting.

d) KEY RISKS IMPACTING THE BANK’S BUSINESS

The Covid-19 pandemic has impacted several countries including Bangladesh since the beginning of 2020. Different
countries announcing lockdowns and quarantine measures that sharply stalled economic activity. The Bangladesh
Government declared a nation-wide lockdown in different phases. Several countries took unprecedented fiscal and
monetary actions to help alleviate the impact of the crisis. The Bangladesh Bank (BB) has announced several measures
to ease stress in the financial system, including enhancing system liquidity, moratorium on loan repayments for
borrowers, asset classification standstill benefit to overdue accounts where a moratorium has been granted and
relaxation in liquidity coverage requirement, among others. The banking system is expected to be impacted by lower
lending opportunities and revenues in the short to medium term and an increase in credit costs. The impact of the
Covid-19 pandemic on Bank’s results remains uncertain and dependent on the spread of Covid-19, further steps taken
by the government and the central bank to mitigate the economic impact, steps taken by the Bank and the time it takes
for economic activities to resume at normal levels.

Certain risks and uncertainties that are common in the Banking industry and may affect future performance of the
Bank. The risks described below are not exhaustive. We operate in a very competitive and ever-changing environment.
New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor
can we assess the impact of all such risk factors on our business

Risk Mitigations
Credit Risk
The Bank’s core business is lending which exposes it to The credit portfolio of the Bank has been operating by the
various types of credit risks, especially failure in repayments Bangladesh Bank guidelines and board approved policy.
and increase in non-performing loans. The Bank measures, monitors and manages credit risks at
an individual borrower level and at the portfolio level. Bank
has maintained required provision in its books. Bank has also
taken various steps to minimize the NPL at a reasonable level.
Capital Risk
According to BASEL-III requirement, Banks have to In addition to internal capital generation, Bank has taken
maintain its capital adequacy @ 12.50% including capital an initiative to issue Rights Shares (6:1R) and BDT 500
conservation buffer. In this respect, Bank maintained CRAR crore Perpetual Bond which already approved by its Board
@ 10.84% and 11.33% on solo and consolidated basis of Directors. In 2020, Bank has issued BDT 325 crore sub-
respectively. ordinated Bonds to strengthen Tier-2 capital Base.
Interest Rate Risk
Interest rate risk in the banking book (IRRBB) refers to From April 2020, Bangladesh Bank fixed the lending caps
the current or prospective risk to the bank’s capital and for all the banks at single digit which ultimately adversely
earnings arising from adverse movements in interest rates impacted Net Interest Income of the Bank. For mitigating
that affect the bank’s banking book positions. When interest this interest rate risk, bank is trying to reprice its deposit and
rates change, the present value and timing of future cash borrowing books.
flows change. This in turn changes the underlying value of
a bank’s assets, liabilities and off-balance sheet items and
hence its economic value. Changes in interest rates also
affect a bank’s earnings by altering interest rate-sensitive
income and expenses, affecting its net interest income (NII).

104 | AB Bank | Annual Report 2020

e) Financial performance and financial position as well as cash flows with the peer industry scenario:
Bank regularly analyzed its performance with peer bank and the major indicators of the performance with peer bank
is given below:

Financial Position
BDT in Crore
Particulars AB (Conso) Peer Bank (AVG)*
Total Loans and Advances 28,290.09 24,866.78
Total Assets 38,856.99 37,046.52
Total Deposits 29,054.72 27,065.98
Total Equity 2,568.91 2,676.15
Total Off-Balance Sheet Items 5,919.14 10,106.95

Financial Performance
BDT in Crore
Particulars AB (Conso) Peer Bank (AVG)
Net Interest Income 425.53 579.63
Total Operating Income 1,251.44 1,408.76
Operating Expenses 586.21 811.92
Profit before Provision 665.22 607.29
Net Profit after Tax 39.43 287.10

Note: Covered some of the peer banks data

In 2020 Bank’s net cash used in operating activities and investing activities was BDT 367.19 crore and BDT 178.80
crore and net cash flow from financing activities was BDT 366.02 crore. Considering all factors, Bank used net cash
in 2020 was BDT 179.97 crore. In 2020, Peer banks’ net cash used in position was BDT 106.05 crore.

Tarique Afzal
President and Managing Director

AB Bank | Annual Report 2020 | 105

 STATEMENT FROM
PRESIDENT & MANAGING DIRECTOR AND
CHIEF FINANCIAL OFFICER
April 25, 2021
The Board of Directors
AB Bank Limited

SUB: CEO AND CFO’s DECLERATION ON FINANCIAL STATEMENTS TO THE BOARD OF DIRECTORS OF THE BANK
Pursuant to the condition No. 1(5)(xxvi) imposed vide the Commission’s Notification No. BSEC/CMRRCD/2006-158/207/
Admin/80 dated 03 June 2018 under section 2CC of the Securities and Exchange Ordinance, 1969, we do hereby declare
that:

1. The Financial Statements of AB Bank Limited for the year ended on December 31, 2020 have been prepared in
compliance with International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS),
as applicable in the Bangladesh and any departure there from has been adequately disclosed;
2. The estimates and judgments related to the financial statements were made on a prudent and reasonable basis, in
order for the financial statements to reveal a true and fair view;
3. The form and substance of transactions and the Bank’s state of affairs have been reasonably and fairly presented
in its financial statements;
4. To ensure above, the Bank has taken proper and adequate care in installing a system of internal control and
maintenance of accounting records;
5. Our internal auditors have conducted periodic audits to provide reasonable assurance that the established policies
and procedures of the Bank were consistently followed; and
6. The management’s use of the going concern basis of accounting in preparing the financial statements is appropriate
and there exists no material uncertainty related to events or conditions that may cast significant doubt on the Bank’s
ability to continue as a going concern

In this regard, we also certify that:

I. We have reviewed the financial statements for the year ended on December 31, 2020 and that to the best of our
knowledge and belief:
a) these statements do not contain any materially untrue statement or omit any material fact or contain statements
that might be misleading;
b) these statements collectively present true and fair view of the Bank’s affairs and are in compliance with existing
accounting standards and applicable laws.
II. There are, to the best of knowledge and belief, no transactions entered into by the Bank during the year which are
fraudulent, illegal or in violation of the code of conduct for the Bank’s Board of Directors or its members.

K.M. Mohiuddin Ahmed Tarique Afzal

Chief Financial Officer President & Managing Director

106 | AB Bank | Annual Report 2020

AUDITOR’S REPORT AND AUDITED CONSOLIDATED & SEPARATE
FINANCIAL STATEMENTS

AB Bank | Annual Report 2020 | 107

108 | AB Bank | Annual Report 2020
AB Bank | Annual Report 2020 | 109
110 | AB Bank | Annual Report 2020
 Signed for & on behalf of
Dhaka, ACNABIN
27 April 2021 Chartered Accountants

Md Moniruzzaman FCA
Partner
Enrollment No.# 787
DVC: 2104280787AS135719

AB Bank | Annual Report 2020 | 111

 AB Bank Limited & Its Subsidiaries
Consolidated Balance Sheet
As at 31 December 2020

31.12.2020 31.12.2019
Notes
PROPERTY AND ASSETS Taka Taka

Cash 3(a) 20,930,795,104 19,872,575,058

In hand (including foreign currencies) 3.1(a) 1,010,038,871 1,136,228,324
Balance with Bangladesh Bank and its agent bank(s) 3.2(a) 19,920,756,233 18,736,346,733
(including foreign currencies)

Balance with other banks and financial institutions 4(a) 4,857,240,927 5,314,835,916
In Bangladesh 4.1(a) 1,690,034,988 1,022,559,568
Outside Bangladesh 4.2(a) 3,167,205,939 4,292,276,348

Money at call and on short notice 5(a) 1,535,077,827 3,927,493,241

Investments 6(a) 64,092,712,647 62,416,398,807

Government 6.1(a) 53,824,738,002 51,271,643,217
Others 6.2(a) 10,267,974,644 11,144,755,589

Loans, advances and lease/investments 282,900,906,689 264,385,001,408

Loans, cash credits, overdrafts, etc./Investments 7(a) 281,211,180,652 262,549,979,066

Bills purchased and discounted 8(a) 1,689,726,038 1,835,022,342

Fixed assets including premises, furniture and fixtures 9(a) 5,032,485,136 5,426,768,812

Other assets 10(a) 8,886,511,119 6,389,899,899

Non-banking assets 11 334,171,836 342,984,836

Total Assets 388,569,901,291 368,075,957,980

LIABILITIES AND CAPITAL

Liabilities

Borrowings from other banks, financial institutions and agents 12(a) 19,107,866,247 14,820,181,442
AB Bank subordinated bond 13 9,350,000,000 7,400,000,000

Deposits and other accounts 14(a) 290,547,160,441 279,394,742,017

Current account and other accounts 28,628,792,668 24,205,281,483
Bills payable 6,423,928,975 4,568,375,122
Savings bank deposits 35,246,391,164 29,888,590,539
Fixed deposits 121,516,359,127 122,907,395,174
Other deposits 98,731,688,508 97,825,099,698

Other liabilities 15(a) 43,875,728,453 42,420,983,644

Total liabilities 362,880,755,141 344,035,907,103

Capital/Shareholders’ equity
Equity attributable to equity holders of the parent company 25,677,210,495 24,028,362,861

Paid-up capital 16 7,960,368,300 7,581,303,150

Statutory reserve 17 7,144,204,404 6,872,052,329
Other reserve 18(a) 3,866,859,865 2,740,036,949
Retained earnings 19(a) 6,705,777,925 6,834,970,432

Non- controlling interest 19(b) 11,935,655 11,688,017

Total equity 25,689,146,150 24,040,050,878
Total Liabilities and Shareholders’ Equity 388,569,901,291 368,075,957,980

112 | AB Bank | Annual Report 2020

AB Bank Limited & Its Subsidiaries
Consolidated Balance Sheet
As at 31 December 2020

31.12.2020 31.12.2019
Notes
Taka Taka

Off-Balance Sheet Items

Contingent liabilities 20 59,191,446,731 47,836,302,228

Acceptances and endorsements 8,043,330,855 9,765,796,881

Letters of guarantee 20.1 12,837,291,873 14,058,371,146
Irrevocable letters of credit 6,094,462,753 6,195,569,825
Bills for collection 32,213,798,567 17,605,068,585
Other contingent liabilities 2,562,682 211,495,791

Other commitments - -

Documentary credits and short term trade-related transactions - -

Forward assets purchased and forward deposits placed - -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -

Total off-balance sheet items 59,191,446,731 47,836,302,228

The annexed notes from 1 to 49 form an integral part of these consolidated financial statements.

Tarique Afzal Khairul Alam Choudhury Shafiqul Alam Muhammad A. (Rumee) Ali

President & Managing Director Director Independent Director Chairman

This is the Consolidated Balance Sheet referred to in our separate report of even date.

Dhaka, Signed for & on behalf of

27 April 2021 ACNABIN
Chartered Accountants

Md Moniruzzaman FCA
Partner

ICAB Enrollment No. 787

DVC: 2104280787AS135719

AB Bank | Annual Report 2020 | 113

 AB Bank Limited & Its Subsidiaries
Consolidated Profit and Loss Account
For the year ended 31 December 2020
2020 2019
Notes
Taka Taka
OPERATING INCOME
Interest income/profit on investments 22(a) 24,426,913,281 26,954,154,381
Interest/profit paid on deposits and borrowings, etc. 23(a) (20,171,603,415) (18,868,484,499)
Net interest income 4,255,309,865 8,085,669,883
Investment income 24(a) 6,491,860,999 2,922,021,590
Commission, exchange and brokerage 25(a) 1,440,094,270 1,897,836,728
Other operating income 26(a) 327,089,387 148,494,928
8,259,044,657 4,968,353,246
Total operating income (a) 12,514,354,523 13,054,023,129
OPERATING EXPENSES
Salary and allowances 27(a) 2,807,245,751 2,805,079,169
Rent, taxes, insurance, electricity, etc. 28(a) 607,753,336 580,714,352
Legal expenses 29(a) 13,884,020 12,497,065
Postage, stamps, telecommunication, etc. 30(a) 98,178,164 107,333,496
Stationery, printing, advertisement, etc. 31(a) 95,661,222 135,924,466
Chief executive’s salary and fees 27.1 12,890,968 5,885,484
Directors’ fees 32(a) 1,999,238 2,605,473
Auditors’ fees 33(a) 3,256,296 7,606,315
Charges on loan losses - 1,107,189,105
Depreciation and repairs of Bank’s assets 34(a) 729,314,539 701,322,318
Other expenses 35(a) 1,491,959,291 1,116,768,196
Total operating ex s (b) 5,862,142,825 6,582,925,440
Profit before provision (c = (a-b)) 6,652,211,697 6,471,097,689
Provision against loans and advances 36(a) 5,100,057,853 4,747,311,840
Provision for investments 37(a) 140,000,000 342,996,243
Other provisions 38(a) 79,842,723 18,227,696
Total provision (d) 5,319,900,576 5,108,535,778
Profit before tax (c-d) 1,332,311,121 1,362,561,911
Provision for taxation 937,982,865 1,239,311,637
Current tax 1,700,309,391 2,077,004,469
Deferred tax (762,326,526) (837,692,832)
Net profit after tax 394,328,256 123,250,274
Appropriations
Statutory reserve 281,750,388 251,073,528
General reserve - -
Dividends, etc. - -
281,750,388 251,073,528
Retained surplus 112,577,868 (127,823,254)
Non- controlling interest 247,638 1,273,877
Net Profit/(Loss) attributable to the shareholders of parent company 112,330,230 (129,097,131)

Consolidated Earnings Per Share (EPS) 40(a) 0.50 0.15

The annexed notes from 1 to 49 form an integral part of these consolidated financial statements.

Tarique Afzal Khairul Alam Choudhury Shafiqul Alam Muhammad A. (Rumee) Ali
President & Managing Director Director Independent Director Chairman

This is the Consolidated Profit and Loss Account referred to in our separate report of even date.

Dhaka, Signed for & on behalf of

27 April 2021 ACNABIN
Chartered Accountants

Md Moniruzzaman FCA
Partner
ICAB Enrollment No. 787
DVC: 2104280787AS135719

114 | AB Bank | Annual Report 2020

AB Bank Limited & Its Subsidiaries
Consolidated Cash Flow Statement
For the year ended 31 December 2020
2020 2019
Taka Taka
Cash Flows from Operating Activities
Interest receipts 13,885,091,531 23,170,672,611
Interest payments (21,692,853,673) (18,655,223,342)
Dividend receipts 82,108,288 174,026,446
Fee and commission receipts 1,111,430,603 1,347,903,819
Recoveries on loans previously written off 172,931,675 109,176,042
Payments to employees (2,820,136,719) (2,810,964,653)
Payments to suppliers (95,661,222) (135,924,466)
Income taxes paid (2,402,738,880) (1,058,411,978)
Receipts from other operating activities 7,065,505,766 3,446,422,981
Payments for other operating activities (2,732,083,753) (2,204,966,439)
Operating profit before changes in operating assets & liabilities (7,426,406,384) 3,382,711,021
Increase/decrease in operating assets and liabilities
Loans and advances to customers (7,974,083,532) (12,891,180,222)
Other assets (1,681,357,381) 759,324,475
Deposits from other banks 2,828,027,511 362,544,953
Deposits from customers 9,845,641,171 43,435,645,062
Trading liabilities (short-term borrowings) 2,577,354,858 (3,353,112,220)
Other liabilities (1,841,075,812) (3,048,482,415)
3,754,506,815 25,264,739,633
Net cash (used in)/ flow from operating activities (a) (3,671,899,568) 28,647,450,655
Cash Flows from Investing Activities
Purchase of government securities (2,505,380,069) (17,718,213,702)
Sale/ (Purchase) of trading securities, shares, bonds, etc. 876,780,945 (316,329,093)
Purchase of property, plant and equipment (159,374,075) (517,699,399)
Net cash used in investing activities (b) (1,787,973,199) (18,552,242,194)
Cash Flows from Financing Activities
Increase/(decrease) of long-term borrowings 3,660,329,947 (1,399,156,097)
Dividend paid (159,676) (62,226)
Net cash flow from/ (used in) Financing activities (c) 3,660,170,271 (1,399,218,323)
Net (decrease)/ increase in cash (a+b+c) (1,799,702,496) 8,695,990,137
Effects of exchange rate changes on cash and cash equivalents 7,693,939 16,803,746
Cash and cash equivalents at beginning of the year 29,116,507,715 20,403,713,833
Cash and cash equivalents at end of the year (*) 27,324,499,158 29,116,507,715

(*) Cash and cash equivalents:

Cash 1,010,038,871 1,136,228,324
Prize bonds 1,385,300 1,603,500
Money at call and on short notice 1,535,077,827 3,927,493,241
Balance with Bangladesh Bank and its agent bank(s) 19,920,756,233 18,736,346,733
Balance with other banks and financial institutions 4,857,240,927 5,314,835,916
27,324,499,158 29,116,507,715
Net Operating Cash Flow Per Share (NOCFPS) (4.61) 35.99
The annexed notes from 1 to 49 form an integral part of these consolidated financial statements.

Tarique Afzal Khairul Alam Choudhury Shafiqul Alam Muhammad A. (Rumee) Ali
President & Managing Director Director Independent Director Chairman

Dhaka,
27 April 2021

AB Bank | Annual Report 2020 | 115

116 |
AB Bank Limited & Its Subsidiaries
Consolidated Statement of Changes in Equity
For the year ended 31 December 2020
(Amount in Taka)
Foreign
exchange
Assets revaluation Investment Non
Paid-up Statutory General Retained
Particulars revaluation reserve on revaluation controlling Total Equity
capital reserve reserve earnings
reserve investment reserve interest
in foreign
operation
Balance at 01 January 2020 7,581,303,150 6,872,052,329 1,304,649,867 1,296,690,729 1,710,590 136,985,764 11,688,017 6,834,970,432 24,040,050,878

AB Bank | Annual Report 2020

Adjustment:
Bonus for 2019:
5% Stock Dividend 379,065,150 - - - - - - (379,065,150) -
Restated balance at 01 January 2020 7,960,368,300 6,872,052,329 1,304,649,867 1,296,690,729 1,710,590 136,985,764 11,688,017 6,455,905,282 24,040,050,878
Net profit after taxation for the year - - - - - - 247,638 394,080,618 394,328,256
Addition/(Adjustment) made during the year - 281,750,388 1,080,000,000 (2,158,304) - 47,932,916 - (131,882,192) 1,275,642,808
Foreign exchange rate fluctuation - (9,598,312) 228,187 - 820,116 - - (12,325,784) (20,875,793)
Balance at 31 December 2020 7,960,368,300 7,144,204,404 2,384,878,054 1,294,532,425 2,530,706 184,918,680 11,935,655 6,705,777,925 25,689,146,150

Balance at 31 December 2019 7,581,303,150 6,872,052,329 1,304,649,867 1,296,690,729 1,710,590 136,985,764 11,688,017 6,834,970,432 24,040,050,878

The annexed notes from 1 to 49 form an integral part of these consolidated financial statements.

Tarique Afzal Khairul Alam Choudhury Shafiqul Alam Muhammad A. (Rumee) Ali
President & Managing Director Director Independent Director Chairman

Dhaka,
27 April 2021
AB Bank Limited
Balance Sheet
As at 31 December 2020

31.12.2020 31.12.2019
Notes
Taka Taka

PROPERTY AND ASSETS

Cash 3 20,930,650,119 19,872,447,371

In hand (including foreign currencies) 3.1 1,009,893,886 1,136,100,637
Balance with Bangladesh Bank and its agent bank(s) 3.2 19,920,756,233 18,736,346,733
(including foreign currencies)

Balance with other banks and financial institutions 4 4,363,793,449 5,248,790,344

In Bangladesh 1,212,295,681 960,214,284
Outside Bangladesh 3,151,497,768 4,288,576,060

Money at call and on short notice 5 2,499,682,377 4,776,493,241

Investments 6 63,437,394,797 61,578,564,387

Government 6.1 53,824,738,002 51,271,643,217
Others 6.2 9,612,656,795 10,306,921,170

Loans, advances and lease/investments 7 274,829,861,346 256,512,476,640

Loans, cash credits, overdrafts, etc./Investments 274,258,221,380 255,778,280,956
Bills purchased and discounted 8 571,639,966 734,195,684

Fixed assets including premises, furniture and fixtures 9 4,488,991,390 4,871,210,242

Other assets 10 14,877,104,936 12,365,703,251
Non-banking assets 11 334,171,836 342,984,836
Total Assets 385,761,650,252 365,568,670,314

LIABILITIES AND CAPITAL

Liabilities
Borrowings from other banks, financial institutions and agents 12 19,107,865,842 14,820,039,741

AB Bank subordinated bond 13 9,350,000,000 7,400,000,000

Deposits and other accounts 14 290,719,342,438 279,457,593,298

Current accounts and other accounts 28,639,222,340 24,205,740,688

Bills payable 6,423,928,975 4,568,375,122
Savings bank deposits 35,246,391,164 29,888,590,539
Fixed deposits 121,537,588,967 122,908,353,612
Other deposits 98,872,210,992 97,886,533,336

Other liabilities 15 42,097,503,740 41,050,555,751

Total liabilities 361,274,712,019 342,728,188,791

Capital/Shareholders’ equity
Shareholders’ equity 24,486,938,234 22,840,481,523

Paid-up capital 16 7,960,368,300 7,581,303,150

Statutory reserve 17 7,144,204,404 6,872,052,329
Other reserve 18 3,695,739,782 2,569,965,170
Retained earnings 19 5,686,625,747 5,817,160,874
Total Liabilities and Shareholders’ Equity 385,761,650,252 365,568,670,314

AB Bank | Annual Report 2020 | 117

 AB Bank Limited
Balance Sheet
As at 31 December 2020
31.12.2020 31.12.2019
Notes
Taka Taka
Off-Balance Sheet Items

Contingent liabilities 20 59,191,446,731 47,836,302,228

Acceptances and endorsements 8,043,330,855 9,765,796,881

Letters of guarantee 20.1 12,837,291,873 14,058,371,146
Irrevocable letters of credit 6,094,462,753 6,195,569,825
Bills for collection 32,213,798,567 17,605,068,585
Other contingent liabilities 2,562,682 211,495,791

Other commitments - -

Documentary credits and short term trade-related transactions - -

Forward assets purchased and forward deposits placed - -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -

Total off-balance sheet items 59,191,446,731 47,836,302,228

The annexed notes from 1 to 49 form an integral part of these financial statements.

Tarique Afzal Khairul Alam Choudhury Shafiqul Alam Muhammad A. (Rumee) Ali

President & Managing Director Director Independent Director Chairman

This is the Balance Sheet referred to in our separate report of even date.

Dhaka, Signed for & on behalf of

27 April 2021 ACNABIN
Chartered Accountants

Md Moniruzzaman FCA
Partner

ICAB Enrollment No. 787

DVC: 2104280787AS135719

118 | AB Bank | Annual Report 2020

AB Bank Limited
Profit and Loss Account
For the year ended 31 December 2020

2020 2019
Notes
Taka Taka
OPERATING INCOME
Interest income/profit on investments 22 24,291,453,339 26,715,497,527
Interest paid/profit on deposits and borrowings, etc. 23 (20,134,646,639) (18,846,782,511)
Net interest income 4,156,806,700 7,868,715,017

Investment income 24 6,464,470,219 3,193,192,033

Commission, exchange and brokerage 25 1,259,012,038 1,752,591,584
Other operating income 26 266,019,048 69,510,357
7,989,501,305 5,015,293,974
Total operating income (a) 12,146,308,005 12,884,008,991

OPERATING EXPENSES
Salary and allowances 27 2,727,898,981 2,732,602,396
Rent, taxes, insurance, electricity, etc. 28 603,021,052 565,877,510
Legal expenses 29 13,232,598 11,038,914
Postage, stamps, telecommunication, etc. 30 87,203,322 92,753,460
Stationery, printing, advertisement, etc. 31 94,329,907 134,693,521
Chief executive’s salary and fees 27.1 12,890,968 5,885,484
Directors’ fees 32 1,109,890 2,076,187
Auditors’ fees 33 2,338,550 6,956,164
Charges on loan losses - 1,107,189,105
Depreciation and repairs of Bank’s assets 34 702,031,345 679,740,496
Other expenses 35 1,435,273,997 1,095,487,977
Total operating expenses (b) 5,679,330,610 6,434,301,214
Profit before provision (c = (a-b)) 6,466,977,395 6,449,707,777

Provision against loans and advances 36 4,925,057,853 4,747,311,840

Provision for investments 37 140,000,000 374,987,754
Other provisions 38 79,842,723 18,227,696
Total provision (d) 5,144,900,576 5,140,527,289
Profit before taxation (c-d) 1,322,076,819 1,309,180,488
Provision for taxation 930,660,427 1,141,439,224
Current tax 1,642,402,204 1,977,784,220
Deferred tax (711,741,777) (836,344,996)
Net profit after taxation 391,416,392 167,741,264
Appropriations
Statutory reserve 281,750,388 251,073,528
General reserve - -
Dividends, etc. - -
281,750,388 251,073,528
Retained surplus 109,666,004 (83,332,264)

Earnings Per Share (EPS) 40 0.49 0.21

The annexed notes from 1 to 49 form an integral part of these financial statements.

Tarique Afzal Khairul Alam Choudhury Shafiqul Alam Muhammad A. (Rumee) Ali
President & Managing Director Director Independent Director Chairman

This is the Profit and Loss Account referred to in our separate report of even date.

Dhaka, Signed for & on behalf of

27 April 2021 ACNABIN
Chartered Accountants

Md Moniruzzaman FCA
Partner
ICAB Enrollment No. 787
DVC: 2104280787AS135719

AB Bank | Annual Report 2020 | 119

 AB Bank Limited
Cash Flow Statement
For the year ended 31 December 2020

2020 2019
Notes
Taka Taka
Cash flows from Operating Activities
Interest receipts 13,749,631,590 22,932,015,757
Interest payments (21,655,896,896) (18,633,521,354)
Dividend receipts 137,581,947 235,761,409
Fees and commission receipts 929,742,512 1,209,120,076
Recoveries on loans previously written off 172,931,675 109,176,042
Payments to employees (2,740,789,949) (2,738,487,880)
Payments to suppliers (94,329,907) (134,693,521)
Income taxes paid (2,329,156,442) (984,829,539)
Receipts from other operating activities 41 6,741,551,232 3,553,608,744
Payments for other operating activities 42 (2,550,630,827) (2,150,212,354)
Operating profit before changes in operating assets & liabilities (7,639,365,065) 3,397,937,379
Increase/decrease in operating assets and liabilities
Loans and advances to customers (7,775,562,957) (13,133,819,317)
Other assets 43 (1,695,382,143) 957,175,755
Deposits from other banks 2,828,027,511 362,544,953
Deposits from customers 9,954,971,886 43,436,937,697
Trading liabilities (short-term borrowings) 2,577,496,154 (3,353,253,921)
Other liabilities 44 (2,079,503,473) (2,964,856,134)
3,810,046,978 25,304,729,034
Net cash (used in)/ flow from operating activities (a) (3,829,318,087) 28,702,666,413
Cash Flows from Investing Activities
Purchase of government securities (2,505,380,069) (17,718,213,702)
Sale/ (Purchase) of trading securities, shares, bonds, etc. 694,264,375 (236,459,523)
Purchase of property, plant and equipment (131,253,641) (508,813,368)
Net cash used in investing activities (b) (1,942,369,335) (18,463,486,593)

Cash Flows from Financing Activities

Increase/(decrease) of long-term borrowings 3,660,329,947 (1,399,156,097)
Dividend paid (159,676) (62,226)
Net cash flow from/ (used in) Financing activities (c) 3,660,170,271 (1,399,218,323)
Net (decrease)/ Increase in cash (a+b+c) (2,111,517,151) 8,839,961,497
Effects of exchange rate changes on cash and cash equivalents 7,693,939 16,803,746
Cash and cash equivalents at beginning of the year 29,899,334,457 21,042,569,215
Cash and cash equivalents at end of the year (*) 27,795,511,245 29,899,334,456

(*) Cash and cash equivalents:

Cash 1,009,893,886 1,136,100,637
Prize bonds 1,385,300 1,603,500
Money at call and on short notice 2,499,682,377 4,776,493,241
Balance with Bangladesh Bank and its agent bank(s) 19,920,756,233 18,736,346,733
Balance with other banks and financial institutions 4,363,793,449 5,248,790,344
27,795,511,245 29,899,334,456

Net Operating Cash Flow Per Share (NOCFPS) 45 (4.81) 36.06

The annexed notes from 1 to 49 form an integral part of these financial statements.

Tarique Afzal Khairul Alam Choudhury Shafiqul Alam Muhammad A. (Rumee) Ali
President & Managing Director Director Independent Director Chairman

Dhaka,
27 April 2021

120 | AB Bank | Annual Report 2020

 AB Bank Limited
Statement of Changes in Equity
For the year ended 31 December 2020
(Amount in Taka)
Investment
Paid-up Statutory General Assets revalu- Retained
Particulars revaluation Total Equity
capital reserve reserve ation reserve earnings
reserve

Balance at 01 January 2020 7,581,303,150 6,872,052,329 1,222,199,200 1,296,690,729 51,075,241 5,817,160,874 22,840,481,523
Adjustment:
Bonus for 2019:
5% Stock Dividend 379,065,150 - - - - (379,065,150) -
Restated Balance at 01 January 2020 7,960,368,300 6,872,052,329 1,222,199,200 1,296,690,729 51,075,241 5,438,095,724 22,840,481,523
Net profit after taxation for the year - - - - - 391,416,392 391,416,392
Addition/(Adjustment) made during the year - 281,750,388 1,080,000,000 (2,158,304) 47,932,916 (131,882,192) 1,275,642,808
Foreign exchange rate fluctuation - (9,598,312) - - - (11,004,177) (20,602,490)
Balance at 31 December 2020 7,960,368,300 7,144,204,404 2,302,199,200 1,294,532,425 99,008,157 5,686,625,747 24,486,938,234

Balance at 31 December 2019 7,581,303,150 6,872,052,329 1,222,199,200 1,296,690,729 51,075,241 5,817,160,874 22,840,481,523

The annexed notes from 1 to 49 form an integral part of these financial statements.

Tarique Afzal Khairul Alam Choudhury Shafiqul Alam Muhammad A. (Rumee) Ali
President & Managing Director Director Independent Director Chairman

Dhaka,

27 April 2021

AB Bank | Annual Report 2020 | 121

122 |
AB Bank Limited
Liquidity Statement
Analysis of Maturity of Assets and Liabilities
As at 31 December 2020

Amount in taka
Up to 1 More than 5
1-3 months’ 3-12 months’ 1-5 years’
Particulars month’s years’ Total
maturity maturity maturity
maturity maturity
Assets
Cash in hand and with banks 9,940,201,683 - - - 10,990,448,436 20,930,650,119

AB Bank | Annual Report 2020

Balance with other banks and financial institutions 3,633,793,449 730,000,000 - - - 4,363,793,449
Money at call and on short notice 1,714,801,937 761,820,561 23,059,879 - - 2,499,682,377
Investments 943,270,250 7,438,514,139 9,264,322,735 25,607,579,032 20,183,708,641 63,437,394,797
Loans, advances and lease/investments 33,910,761,022 68,084,379,741 125,115,097,684 31,719,521,979 16,000,100,920 274,829,861,346
Fixed assets including premises, furniture and fixtures - - - - 4,488,991,390 4,488,991,390
Other assets 429,745,746 3,274,541,530 3,490,927,592 1,647,863,090 6,034,026,978 14,877,104,936
Non-banking assets - - - 334,171,836 - 334,171,836
Total Assets 50,572,574,087 80,289,255,971 137,893,407,891 59,309,135,936 57,697,276,365 385,761,650,252

Liabilities
Borrowing from Bangladesh Bank, other banks, financial 13,215,147,886 3,045,897,657 3,101,133,612 5,512,271,648 3,583,415,039 28,457,865,842
institutions and agents
Deposit and other accounts 35,923,836,731 72,722,536,630 129,178,831,637 46,613,421,773 6,280,715,668 290,719,342,438
Provision and other liabilities 867,949,294 1,324,764,711 9,049,098,137 30,365,653,241 490,038,357 42,097,503,740
Total Liabilities 50,006,933,911 77,093,198,998 141,329,063,386 82,491,346,662 10,354,169,064 361,274,712,019
Net liquidity excess/(shortage) 565,640,176 3,196,056,972 (3,435,655,495) (23,182,210,725) 47,343,107,301 24,486,938,234

Tarique Afzal Khairul Alam Choudhury Shafiqul Alam Muhammad A. (Rumee) Ali
President & Managing Director Director Independent Director Chairman

Dhaka,

27 April 2021
AB Bank Limited and Its Subsidiaries
Notes to the Consolidated and Separate Financial Statements
As at and for the year ended 31 December 2020

1.1 The Bank and its activities

AB Bank Limited (the Bank) is one of the first generation Private Commercial Banks (PCBs) incorporated in Bangladesh on 31
December 1981 as a public limited company under the Companies Act 1913, subsequently replaced by the Companies Act 1994, and
is governed by the Bank Company Act, 1991 (amendment up to 2018). The Bank went for public issue of its shares on 28 December
1983 and its shares are listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited. AB Bank Limited has
105 Branches including one (1) Islami Banking Branch and one (1) Overseas Branch in Mumbai, India. The Bank has five subsidiary
companies namely AB Investment Limited, AB Securities Limited, Cashlink Bangladesh Limited, Arab Bangladesh Bank Foundation
all incorporated in Bangladesh and AB International Finance Limited, incorporated in Hong Kong.

AB Investment Limited (ABIL) and AB Securities Limited (ABSL) were incorporated as subsidiary companies after obtaining the
approvals from Bangladesh Bank following guidelines of the Bangladesh Securities and Exchange Commission (BSEC). These two
subsidiaries are being put into operations to cater the merchant banking and brokerage business which were previously carried out
by the Bank itself.

The Bank through its Branches and non-banking subsidiaries provides a diverse range of financial services and products in
Bangladesh and in certain international markets. The Bank has expanded its capital market oriented service horizon to its customers
through AB Investment Limited. The Bank obtained permission from BSEC to embark upon merchant banking vide its certificate
no. MB-1.02/2001-30 dated 15 May 2001 under the Securities and Exchange Commission Act 1993. Subsequently, the Bank has
formed a subsidiary company named AB Investment Limited in accordance with the approval of Bangladesh Bank vide letter no.
BRPD(R-1)717/2009-538 dated 09 December 2009 and the Bangladesh Securities and Exchange Commission vide letter no. Sec/
Reg/MB-79/2010/73 dated 10 March 2010 for dealing the Merchant Banking business.

AB Bank Limited started its Islami Banking operation through its Dilkusha Islami Banking Branch, Dhaka on 23 December 2004
following the permission of Bangladesh Bank vide letter no. BRPD (P) 745 (12)/2004-2702 dated 08 July 2004. Subsequently, the
Branch was shifted to Kakrail, Dhaka on 18 October 2006.

The Bank obtained permission to work as a security custodian from the Bangladesh Securities and Exchange Commission vide its
certificate no. SC-05/2007 dated 22 January 2007 under the Securities and Exchange Commission (Securities Custodian Service)
Rules 2003.

In the year 2009, the Bank obtained permission to operate Off Shore Banking Unit (OBU) vide letter # BRPD (P-3)744/(106)/2009-
4486 dated 06 December 2009 of Bangladesh Bank. OBU operation has been carried out from 28 April 2010 through the Bank’s EPZ
Branch, Chittagong.

1.2 Significant accounting policies and basis of preparation of the financial statements
Presentation of the financial statements
The consolidated and separate financial statements of the Bank have been prepared for the year ended December 31, 2020 in
accordance with the measurement and recognition requirements of International Accounting Standards (IASs) and International
Financial Reporting Standards (IFRSs) which have replaced Bangladesh Accounting Standards (BASs) and Bangladesh Financial
Reporting Standards (BFRSs) vide circular no. 1/1/ICAB-2017 of the Institute of Chartered Accountants of Bangladesh, the
accounting standard setting body for Bangladesh, dated 14 December 2017 for due period begins on or after 1 January 2018.

The financial statements cover a full set of financial statements which comprise of consolidated and separate Balance Sheets, Profit
or Loss Accounts, Cash Flow Statements, Statements of Changes in Equity, Liquidity Statement and relevant notes and disclosures.

The financial statements have been prepared under historical cost convention, except investments categorised under treasury
securities in accordance with Bank Company Act,1991 (amendment up to 2018); BRPD circular no. 14 dated 25 June 2003, the
Companies Act, 1994; the Securities and Exchange Ordinance 1969, Securities and Exchange Rules 1987 and other laws and rules
applicable for the Bank.
Basis of consolidation
Separate set of records for consolidating the financial statements of the Branches including Mumbai Branch, India, AB Investment
Limited, AB Securities Limited, Cashlink Bangladesh Limited and AB International Finance Limited, Hong Kong are maintained at the
Head Office of the Bank, based on which these financial statements have been prepared. The consolidated financial statements have
been prepared in accordance with the IFRS 10 “Consolidated Financial Statements”. The Consolidated Financial Statements have
been prepared to a common reporting period ending on 31 December 2020.
Mumbai branch, India
The assets and liabilities of Mumbai Branch, India have been incorporated in the accounts at year end exchange rate. Income and
expenditures have been incorporated in the accounts by each line item. The Balance Sheet and Profit and Loss Account of the
Mumbai Branch have been shown separately in Annexure-E.

AB Bank | Annual Report 2020 | 123

 Islami Banking Branch
Islami Banking Branch has been maintaining separate set of books and records for its operations following Bangladesh Bank
guidelines. All assets-liabilities and income-expenses of this Branch have been incorporated in similar heads of account of the Bank’s
financial statements. Balance Sheet and Profit and Loss Account of Islami Banking Branch is shown separately in Annexure-F as per
Bangladesh Bank BRPD Circular No. 15 dated 09 November 2009. Distribution of profit under Islamic Banking Operation and fixation
of final rate for the year 2020 has also been disclosed separately in Annexure-G.
Custodian Wing
Financial statements of Custodian Wing have been separately audited by the auditor of the Bank. Income-expenditures of Custodian
Wing have been incorporated in similar heads of account of the Bank’s Profit and Loss Account. Profit and Loss Account of Custodian
Wing has been shown separately in Annexure-H.
Off-Shore Banking Unit (OBU)
This particular unit of the Bank started its operation in the year 2010. Assets-liabilities and income-expenditures of Off- Shore
Banking Unit are incorporated in similar heads of account of the Bank’s Balance Sheet and Profit and Loss Account. The Balance
Sheet and Profit and Loss Account of the Off-Shore Banking Unit (OBU) have been shown separately in Annexure-I.
Yangon Representative Office, Myanmar
AB Bank Limited, Yangon Representative Office (YRO), Myanmar, has been established primarily for encouraging and procuring
Business under Border Trade Agreement between the Government of the Peoples’ Republic of Bangladesh and the Republic of Union
of Myanmar. YRO is also maintaining liaison with the Regulatory Bodies and Business Agencies of Myanmar. Statement of Receipts
and Payments of the representative office has been shown separately in Annexure-J.
Investment in Amana Bank Limited
The Bank invested in Amana Bank Limited, Srilanka which is a licensed commercial bank and established under the Banking Act No.
30 of 1988 (Srilankan Banking Act) and amendments thereto. Amana Bank is a public limited liability company incorporated on 05
February 2009 and the registered office of the Bank is located at No. 480, Galle Road, Colombo 3. The Bank commenced commercial
banking operations on 01 August 2011. Amana Bank is also a listed company under the Colombo Stock Exchange. AB has invested
7.22% in the shares of Amana Bank Limited.
Subsidiaries operation
The financial statements of subsidiaries (except Arab Bangladesh Bank Foundation-ABBF) have been consolidated following IFRS
10 “Consolidated Financial Statements”. ABBF operated only for philanthropic purpose and its profit is not distributable to the
shareholders. Thus, for ensuring the fair presentation of the Financial Statements of the Parent Company (the Bank), the Financial
Statements of ABBF has not been consolidated.
AB Investment Limited (ABIL)
AB Investment Limited (ABIL) started its operation from 10 March 2010 for Merchant Banking Operation. AB Bank Limited holds
99.99% shares in ABIL. The Statement of Financial Position and Statement of Profit or Loss and Other Comprehensive Income of
ABIL have been shown separately in Annexure-K.
AB Securities Limited (ABSL)
Brokerage business of Arab Bangladesh Bank Foundation has been transferred to AB Securities Limited (ABSL) vide Bangladesh
Bank approval letter BRPD(R-1)717/2009-493 dated 08 November 2009. AB Bank Limited at present holds 99.91% shares in ABSL.
The Statement of Financial Position and Statement of Profit or Loss and Other Comprehensive Income of ABSL have been shown
separately in Annexure-L.
Cashlink Bangladesh Limited (CBL)
Cashlink Bangladesh Limited (CBL) was incorporated on 24 September 2008 with an authorised capital of Taka 1,000,000,000
divided into 100,000,000 ordinary shares of Taka 10 each. The Bank at present holds 90% shares in CBL.
The Statement of Financial Position and Statement of Profit or Loss and Other Comprehensive Income of the CBL have been shown
separately in Annexure-M.
AB International Finance Limited (ABIFL)
AB International Finance Limited (ABIFL) is a company incorporated in Hong Kong. Its registered office and principal place of
business is situated at Room 1608, 16th Floor, Tower 1, Silvercord, 30 Canton Road, Tsim Sha Tsui, Hong Kong. It is a fully owned
(100%) Subsidiary of AB Bank Limited. Statement of Financial Position and Statement of Income and Retained Earnings of ABIFL
have been shown separately in Annexure-N.

Arab Bangladesh Bank Foundation (ABBF)

Arab Bangladesh Bank Foundation (ABBF) has maintained separate set of books and records for its operation. The Statement
of Financial Position and Statement of Profit or Loss and Other Comprehensive Income of ABBF have been shown separately in
Annexure -O.
Use of estimates and judgments

The preparation of consolidated financial statements and financial statements of the Bank required management to make judgments,
estimates and assumptions that affected the application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates.

124 | AB Bank | Annual Report 2020

Estimates and underlying assumptions have been reviewed considering business realities. Revisions of accounting estimates have
been recognised in the period in which the estimates have been revised and in the future periods affected, if applicable.
All intergroup balances, transactions, income and expenses are fully eliminated while preparing the consolidated financial statements.
Materiality, aggregation and offsetting
The Bank aggregates each material class of similar items and separately which are dissimilar in nature or function unless those
are immaterial. The Bank did not offset assets and liabilities or income and expense, unless required or permitted by IAS/ IFRS.
Foreign currency transactions
Functional and presentational currency
Financial statements of the Bank have been presented in Taka, which is the Bank’s functional and presentational currency.
Foreign currency translation
Foreign currency transactions have been converted into equivalent Taka currency at the ruling exchange rates on the respective
date of such transactions as per IAS 21 “The Effects of Changes in Foreign Exchange Rates”.
Assets and liabilities in foreign currencies as at 31 December 2020 have been converted into Taka currency at the average of the
prevailing buying and selling rates of the relevant foreign currencies at that date except “balances with other banks and financial
institutions” which have been converted as per directives of Bangladesh Bank vide its circular no. BRPD (R) 717/2004-959 dated
21 November 2004.
Differences arising through buying and selling transactions of foreign currencies on different dates of the year have been adjusted
by debiting /crediting exchange gain or loss account.

Commitment
Commitments for outstanding forward foreign exchange contracts disclosed in the consolidated financial statements and financial
statements of the Bank have been translated at contracted rates. Contingent liabilities/commitments for letter of credit, letter of
guarantee and acceptance denominated in foreign currencies have been expressed in Taka terms at the rates of exchange ruling
on the balance sheet date.

Translation gain and losses

Gains or losses arising out of translation of foreign exchange have been included in the Profit and Loss Account, except those arising
on the translation of net investment in foreign branch and subsidiaries.
Foreign operations
The results of financial statements of the Bank whose functional currency is not Bangladesh Taka are translated into Bangladesh
Taka as follows:
a. assets and liabilities for each items of Balance Sheet have been translated at the closing rate on the date of Balance sheet.
b. income and expenses for Profit and Loss (P & L) Account have been translated at an monthly average rate of the year; and
c. all resulting exchange differences have been recognized in the P&L or as a separate components of equity, where appropriate.

Cash flow statement

Cash Flow Statement is prepared principally in accordance with IAS 7 “Statement of Cash Flows” under direct method as per the
guidelines of BRPD circular no. 14 dated 25 June 2003. The Statement of Cash Flows show the structure of and changes in cash
and cash equivalents during the period. Cash Flows during the year have been classified as operating activities, investing activities
and financing activities.

Statement of changes in equity

Statement of Changes in Equity has been prepared in accordance with IAS 1 “Presentation of Financial Statements” and following
the guidelines of Bangladesh Bank BRPD circular no. 14 dated 25 June 2003.

Liquidity statement

The basis of the liquidity statement of assets and liabilities as on the reporting date is given below:

Particulars Basis used

Balance with other banks and financial institutions Maturity term
Investments Respective maturity terms
Loans and advances Repayment schedule basis
Fixed assets Useful life
Other assets Realization/ amortization basis
Borrowing from other banks, financial institutions and agents Maturity/ repayments terms
Deposits and others accounts Maturity term/ Previous trend
Other liabilities Payments/ adjustments schedule basis

AB Bank | Annual Report 2020 | 125

 1.3 Assets and basis of their valuation
Cash and cash equivalents
Cash comprises cash in hand and demand deposits in the banks.
Cash equivalents are short term, highly liquid investments that are readily convertible into known amounts of cash and which are
subject to an insignificant risk of changes in value.
Loans and advances
i. Loans and advances/investments in Islamic Banking Branch are stated at gross amounts at 31 December 2020.
ii. Interest/profit is calculated on a daily basis but charged and accounted on accrual basis. Interest/profit on classified loans
and advances/ investment is kept in suspense account as per Bangladesh Bank instructions and such interest/ profit is not
accounted for income until realized from borrowers. Interest/profit is not charged on bad and loss loans/ investments as per
guideline of Bangladesh Bank.
iii. Commission on bills purchased and discounting are recognised at the time of realisation.
iv. Provision for loans and advances is made on the basis of quarter-end review by the management and as per instructions
contained in BRPD circular no. 14 dated 23 September 2012, BRPD circular no. 05 dated 29 May 2013, BRPD Circular No. 16
dated 18 November 2014, BRPD Circular No. 04 dated 29 January 2015, BRPD Circular No. 08 dated 02 August 2015, BRPD
Circular No. 12 dated 20 August 2017, BRPD Circular No. 15 dated 27 September 2017, BRPD Circular No. 01/2018 dated 20
February 2018, BRPD Circular No. 07 dated 21 June 2018, BRPD Circular No. 03 dated 21 April 2019 and BRPD Circular No.
56 dated 10 December 2020. The rates for provisions are stated below:

Consumer Financing Off

Loans All
Short Term Other Balance
Particulars Credit SMEF to BHs/ Other
Agri Credit than HF LP Sheet
Card MBs/SDs Credit
HF, LP Exposures

Standard 1% 5% 1% 2% 2% 0.25% 2% 1%
UC
SMA - 5% 1% 2% 2% 0.25% 2% 1%
SS 5% 20% 20% 20% 20% 20% 20% 20% 1%
Classified DF 5% 50% 50% 50% 50% 50% 50% 50%
BL 100% 100% 100% 100% 100% 100% 100% 100%

1% Special General Provision for COVID-19 has been kept as per BRPD circular letter no. 56 dated 10 December 2020.
Investment
Investments have been initially recognised at cost, including acquisition charges associated with the investment. Premium has been
amortised and discount accredited, using the effective or historical yield method. Government Treasury Bills and Bonds (categorized
as HFT or/and HTM) are accounted for as per Bangladesh Bank DOS circular letter no. 05 dated 26 May 2008 and DOS circular no.
05 dated 28 January 2009.
The valuation methods of investment used are:
Government securities
Held to Maturity (HTM)
Investments which are intended to be held to maturity are classified as “Held to Maturity”. These are measured at amortised cost at
each year end by taking into account any discount or premium in acquisition. Amortised amount of such premium are booked into
Profit and Loss Account or discount is booked to reserve until maturity/disposal.

Held for Trading (HFT)

Investment primarily held for selling or trading is classified in this category. After initial recognition, investments are valued on the
basis of marked to market on weekly basis. Decrease in the book value is recognised in the Profit and Loss Account and any increase
is transferred to revaluation reserve account.

Value of investments has been enumerated as follows:

Measurement after
Investment class Initial recognition Recording of changes
initial recognition
Loss to Profit and Loss Account (P&L), gain to
Treasury Bill / Bond (HFT) Cost Market value
revaluation reserve
Treasury Bill / Bond (HTM) Cost Amortised value Increase in value to equity and decrease in value to P&L
Debenture Face value None None
Prize bond Cost None None
Realised gain or loss, recognised in P&L
Lower of cost and market
Shares Cost Unrealized gain is not recognized in accounts. Provision
value
is maintained for unrealized loss, if any

126 | AB Bank | Annual Report 2020

Investment in listed securities
These securities are brought and held primarily for the purpose of selling them in future or held for dividend income. These are
reported at cost. Unrealised gains are not recognised in the Profit and Loss Account.
In Accordance with BRPD Circular no. 14 dated 25 June 2003, provisions should be made for any loss arising from the diminution
in value of investments. Subsequently, as per DOS Circular No.04 dated 24 November 2011, provisions may be made for any loss
arising from the diminution in value of investments after netting of gain. Provision against Mutual Fund should be maintained in
accordance with DOS circular letter no. 10 dated June 28, 2015.
Investment in unlisted securities
Investment in unlisted securities is reported at cost under cost method.
Investment in subsidiaries
Investment in subsidiaries is accounted for under the cost method of accounting in the Bank’s financial statements in accordance
with the IAS 27 “Separate Financial Statements”.
Fixed assets
i) All fixed assets are stated at cost less accumulated depreciation as per IAS 16 “Property, Plant and Equipment”. The cost
is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire an asset at the
time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in
accordance with the specific requirements of the IFRS.
ii) The cost of an item of property, plant and equipment is recognised as an asset if-
iii) Depreciation on fixed assets is charged over the estimated useful life of the assets using reducing balance method except
motor vehicles, computers & computer equipments, core banking hardware and photocopiers for which straight-line method
is used. The rates of depreciation are as follows:
Category of asset Rate of depreciation
Land Nil
Building 2.50%
Furniture and fixtures 10%
Electrical appliances 20%
Motor vehicles 20%
Core banking hardware 12.50%

iv) Depreciation on fixed assets is charged when the respective asset is ready to use.
v) The cost and accumulated depreciation of disposed assets are eliminated from the fixed assets schedule and gain or loss on
such disposal is reflected in the Profit and Loss Account.
vi) Useful lives and method of depreciation of fixed assets are reviewed periodically. If useful lives of assets do not differ
significantly as these were previously estimated, revaluation of assets does not consider to be done.
vii) Bank capitalised items value of which is over Taka 50,000 and the items below Taka 50,000 were booked as non-capitalised
items under the broader head of other expenses with effect from 01 March 2009 in accordance with the relevant policy of
the Bank.
viii) Bank also follows a policy for amortisation of expenditure considering the durability and useful lives of items. These are
treated as intangible assets and are booked under the head “Fixed Assets” and amortised over their estimated useful lives
by charging under the broad head “Depreciation”.

AB Bank | Annual Report 2020 | 127

 Intangible assets
An intangible asset is recognised if-
a. It is probable that the expected future economic benefits that are attributable to the assets will flow to the entity; and
b. The cost of the assets can be measured reliably.

Other assets

Other assets include all balance sheet items not covered specifically in other areas.
Lease
Bank recognised a contract as (or contains) a lease if the contract conveys the right to control the use of an identified asset for
a period of time in exchange for consideration. The Bank applied IFRS 16 Lease since 2019.

i) Right-of-use assets
The Bank recognises right-of-use assets at the date of initial application of IFRS 16. The cost of the right of use assets
comprises present value of lease payments less incentive plus initial direct payment and dismantling cost etc.
ii) Lease liabilities
At the commencement date of the lease, the Bank recognises lease liabilities measured at the present value of lease
payments to be made over the lease term using incremental borrowing rate at the date of initial application. Lease liability
is measured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to
reflect the lease payments, and re-measuring the carrying amount to reflect any reassessment or lease modifications.
Interest on the lease liability in each period during the lease term shall be the amount that produces a constant periodic
rate of interest on the remaining balance of the lease liability. The Bank recognised lease liabilities which are present
value of lease payments to be made over the lease term from the date of commencement or 01 January 2019. The lease
payment has been discounted using Treasury bill/bond rate supporting lease tenor 1-10 years as implicit borrowing rate.

iii) Short-term leases and leases of low value assets

The Bank has elected not to recognise right-of-use assets and lease liabilities for leases of low value assets and short term
leases, i.e. for which the lease term ends within 12 months of the date of initial application. The Bank recognises lease
payments associated with these leases as an expense. The contracts for premises with all branches, head office, regional
offices, data centres and disaster recovery centres are considered for lease calculation.
The Bank as lessee on lease-by-lease basis, elected a single threshold less than BDT 1 crore to consider low value asset
on the basis of materiality (less than 1%) of Bank’s Total capital BDT 3,694 crore. Hence, any payment made by the Bank
under contract for use of any rental premises or assets for a period not exceeding twelve months, and or, falls as low value
asset and substantially risks and benefits of ownership of those rental premises/assets do not transfer to the Bank, are
recognised as expense.
iv) Depreciation of Right-of-Use Assets
The right of use assets are depreciated using a straight line method from the lease recognition date to the end of the lease term.

Stock of stationery
Stock of stationery has been shown under other assets and is valued at cost.

1.4 Capital, reserve, liabilities and provision and basis of their valuation
Share capital
Ordinary shares are classified as equity when there is no contractual obligation to transfer cash or other financial assets.

Statutory reserve
As per Section 24 of the Bank Company Act, 1991 (amendment up to 2018), 20% of current year’s profit of the Bank is required
to be transferred to Statutory Reserve until such reserve together with share premium account equals to its paid up capital.

Revaluation reserve
When an asset’s carrying amount is increased as a result of revaluation, the increased amount should be credited directly to
equity under the head revaluation surplus/ reserve as per IAS 16 “Property, Plant and Equipment”. There is no significant change
in market value of revalued assets, hence the assets were not further revalued. Management will continuously assess the fair
market value.

Deposits and other accounts

Deposits are recognised when the Bank enters into contractual arrangements with the counterparties, which are generally on
trade date and initially measured at the amount of consideration received.

Borrowing
Borrowed funds include call money, term borrowings and re-finance from different commercial banks, non-banking financial
institutions and central bank.

128 | AB Bank | Annual Report 2020

Provision for taxation
Income tax represents the sum of the current tax and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income
statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes
items that are never taxable or deductible. The Bank’s liability for current tax is calculated using tax rates that have been enacted
or substantively enacted by the balance sheet date.
Provision for current income tax has been made @ 37.50% on the accounting profit made by the Bank after considering taxable
allowances and disallowances as per income tax laws applicable for the Bank.
Deferred tax
Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements
and the corresponding tax bases used in the computation of taxable profit and are accounted for using the balance sheet
liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are
recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences,
unused tax losses or unused tax credits can be utilised. Such assets and liabilities are not recognised if the temporary difference
arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a
transaction that affects neither the taxable profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and
interests in joint ventures, except where the Bank is able to control the reversal of the temporary difference and it is probable
that the temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is
realised, based on tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is charged
or credited to the income statement, except when it relates to items charged or credited directly to equity, in which case the
deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current
tax liabilities and when they relate to income taxes levied by the same taxation authority and the company intends to settle its
current tax assets and liabilities on a net basis.
The impact on the account of changes in the deferred tax assets and liabilities has also been recognized in the Profit and Loss
Account as per IAS-12 “Income Taxes” (note 11.1).
Retirement benefits to the employees
The retirement benefits accrued for the employees of the Bank as on the reporting date have been accounted for in accordance
with the provision of IAS 19 “Employee Benefits”. Bases of enumerating the retirement benefits schemes operated by the Bank
are outlined below:
Provident fund
There is a provident fund scheme under the defined contribution plan. The fund is operated by a separate board of trustees
approved by the National Board of Revenue as per Income Tax Ordinance, 1984. All eligible employees contribute 10% of their
basic pay to the fund. The Bank also contributes equal of employee’s contribution to the fund. These contributions are invested
separately. Benefits from the fund are given to eligible employees at the time of retirement/resignation as per approved rules of
the fund.
Staff gratuity
The Bank has a separate Board of Trustees for operating the staff gratuity fund approved by the National Board of Revenue.
Employees of the Bank, who served the Bank for ten years or above are entitled to get gratuity benefit at rates determined by
the Service Rules of the Bank.
Superannuation fund
The Bank operates a Superannuation Fund as death-cum-retirement benefit for its employees. The fund is operated by a separate
Board of Trustees.
Provision for liabilities
A provision is recognised in the balance sheet when the Bank has a legal or constructive obligation as a result of past event and
it is probable that an outflow of economic benefit will be required to settle the obligations, in accordance with IAS 37 “Provisions,
Contingent Liabilities and Contingent Assets”.
No provision is recognised for any possible obligation that arises from past events and the existence of which will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Bank, or any
present obligation that arises from past events and it is not probable that an outflow of resources embodying economic benefits
will be required to settle the obligation, or a reliable estimates of the amount of obligation cannot be made.
However, certain provisions on assets and liabilities are maintained in accordance with relevant Bangladesh Bank Circulars issued
from time to time.

AB Bank | Annual Report 2020 | 129

 Provision for nostro accounts
Provision for nostro accounts is required to be maintained as per circular letter no. FEPD(FEMO)/01/2005-677 dated 13 September
2005 issued by Foreign Exchange Policy Department of Bangladesh Bank.
Non- controlling Interest
Non- Controlling Interest is the equity in a subsidiary not attributable, directly or indirectly, to the parent.
As per IFRS 10 ‘Consolidated Financial Statements’ Bank presents non- controlling interest separately in financial statements.
Profit or loss and each component of other shareholders equity are attributed to the owners of the parent and to the non-
controlling interest. Total shareholders equity is attributed to the owners of the parent and to the non- controlling interest even
if this result in the non- controlling interest having a deficit balance.
1.5 Revenue recognition
Interest income
The interest income is recognised on accrual basis. Interest on loans and advances ceases to be taken into income when such
advances are classified or treated as Sub Standard (SS) as per BRPD circular no. 14 dated 23 September 2012 and is kept in
interest suspense account. Interest on classified advances is accounted for as income when realised.
Profit on investment (Islami Banking branch)
Profit on investment is taken into income account from profit receivable account. Overdue charges/ compensation on classified
investment is transferred to profit suspense/ compensation receivable account instead of income account.
Investment income
Interest income on investments is recognised on accrual basis except treasury bills. Capital gains on investments in shares are
also included in investment income. Capital gains are recognized when these are realised.
Fees and commission income
Fees and commission income on services provided by the Bank are recognised as and when the services are rendered. Commission
charged to customers on letters of credit and letters of guarantee are credited to income at the time of affecting the transactions.
Dividend income on shares
Dividend income from investment in shares is recognised when the Bank’s right to receive dividend is established. It recognised when:
a. It is probable that the economic benefits associated with the transaction will flow to the entity; and
b. the amount of the revenue can be measured reliably.
Interest paid on deposits and borrowings
Interest paid on deposits, borrowings, etc. is accounted for on accrual basis according to the IAS 1 “Presentation of Financial
Statements”.
Other operating expenses
All other operating expenses are provided for in the books of the account on accrual basis according to the IAS 1 “Presentation
of Financial Statements”.
1.6 Reconciliation of books of account
Books of account with regard to inter-bank (in Bangladesh and outside Bangladesh) and inter-branch transactions are reconciled.
1.7 Earnings Per Share (EPS)
Basic earnings per share
Basic earnings per share have been calculated in accordance with IAS 33 “Earnings per Share” which has been shown in the face
of the Profit and Loss Account. This has been calculated by dividing the profit attributable to the ordinary shareholders by the
numbers of ordinary shares.
Diluted earnings per share
Diluted earnings per share is to be calculated by adjusting profit or loss attributable to ordinary equity holders of the parent entity,
and weighted average number of shares outstanding, for the effects of all dilutive potential ordinary shares.
Potential ordinary shares shall be treated as dilutive when, and only when, their conversion to ordinary shares would decrease
earnings per share or increase loss per share from continuing operations.
1.8 Off-balance sheet items
Off-Balance Sheet items have been disclosed under contingent liabilities and other commitments as per Bangladesh Bank’s guidelines.
In accordance with BRPD circular no.14 dated 23 September 2012 and BRPD circular no. 07 dated 21 June 2018, general
provision for Off-Balance Sheet exposure of the Bank as at 31 December 2019 has been considered. Provision is made on the total
exposure and amount of cash margin or value of eligible collateral is not deducted while computing Off-Balance sheet exposure.
1.9 Memorandum items
Memorandum items are maintained for those items for which the Bank has only a business responsibility and no legal commitment.

130 | AB Bank | Annual Report 2020

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
1.10 Segment Reporting

The Bank reports its operations under the following two business segments as per International Financial Reporting Standards (IFRS)-8 “Operating Segment”.

By geographical location and segment business

BDT in Crore
AB Bank Limited Subsidiaries
Inside Bangladesh Inside Bangladesh
AB Int. AB Bank
Particulars Mumbai and it’s
AB AB Cash Link Finance Adjustment
Conventional Islamic Investment Off- Shore Branch, Adjustment Total subsidiaries
Investment Securities Bangladesh Ltd. (Hong
Banking Banking Banking Banking Unit India Kong)
Limited Limited Ltd. (CBL)

Profit and loss account

Interest income 2,404.32 63.21 - 15.80 3.89 (58.08) 2,429.15 6.00 3.57 0.40 4.44 (0.87) 2,442.69
Int. paid on deposits & borrowings, etc. 1,954.88 61.03 29.12 25.33 1.18 (58.08) 2,013.46 - 3.93 - 0.63 (0.87) 2,017.16
Net interest income 449.44 2.18 (29.12) (9.53) 2.72 - 415.68 6.00 (0.36) 0.40 3.81 - 425.53
Investment income 641.76 1.24 0.75 - 2.70 - 646.45 6.37 3.86 - - (7.49) 649.19
Commission, exchange and brokerage 100.46 0.24 - 0.01 25.19 - 125.90 4.14 9.96 - 4.21 (0.21) 144.01
Other operating income 26.46 0.02 - - 0.12 - 26.60 1.01 0.29 - 5.72 (0.91) 32.71
Total operating income 1,218.12 3.68 (28.38) (9.52) 30.73 - 1,214.63 17.52 13.75 0.40 13.74 (8.61) 1,251.44

Operating Expenses
Salary and allowances 269.91 2.08 - 0.28 1.81 - 274.08 1.72 3.12 0.03 3.07 - 282.01
Rent, taxes, insurance, electricity, etc. 57.73 0.14 - - 2.42 - 60.30 0.22 0.22 - 0.94 (0.91) 60.78
Legal expenses 1.32 - - - - - 1.32 0.01 - - 0.05 - 1.39
Postage, stamps, telecom., etc. 8.23 0.02 - - 0.46 - 8.72 0.09 0.16 - 0.85 - 9.82
Stationery, printing, advertisement, etc. 9.25 0.04 - - 0.13 - 9.43 0.02 0.08 - 0.03 - 9.57
Directors’ fees 0.10 0.01 - - - - 0.11 0.04 0.05 0.00 - - 0.20
Auditors’ fees 0.16 - - - 0.07 - 0.23 0.02 0.02 0.00 0.05 - 0.33
Charges on loan losses - - - - - - - - - - - - -
Depreciation & repairs of Bank’s assets 69.76 0.11 - 0.03 0.30 - 70.20 1.89 0.78 - 0.05 - 72.93
Other expenses 119.21 0.65 0.56 0.03 23.07 - 143.53 3.54 2.29 0.01 0.04 (0.21) 149.20
Total operating expenses 535.68 3.06 0.56 0.35 28.28 - 567.93 7.54 6.73 0.04 5.10 (1.13) 586.21
Profit before provision 682.44 0.62 (28.94) (9.86) 2.45 - 646.70 9.98 7.03 0.36 8.64 (7.49) 665.22

Provision against loans and advances 492.51 510.01

Provision for investments 14.00 14.00
Other provisions 7.98 7.98
Total provision 514.49 531.99
Profit before taxation 132.21 133.23
Provision for taxation 93.07 93.80
Net profit after taxation 39.14 39.43

AB Bank | Annual Report 2020 | 131

132 |
AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
By geographical location and segment business (cont.)

Balance Sheet
BDT in Crore
AB Bank Limited Subsidiaries
Inside Bangladesh Inside Bangladesh AB Bank
Particulars Mumbai AB Int. Adjustment and it’s
Branch, Adjustment Total AB AB Cash Link Finance Ltd. subsidiaries
Conventional Islamic Investment
OBU India Investment Securities Bangladesh (Hong Kong)
Banking Banking Banking
Limited Ltd. Ltd. (CBL)

AB Bank | Annual Report 2020

PROPERTY AND ASSETS
Cash 2,065.90 26.83 - - 0.34 - 2,093.07 - - 0.01 - - 2,093.08
Balance with other banks & fin.institution 165.63 134.82 - 0.66 174.46 (39.21) 436.38 13.60 45.67 4.53 2.60 (17.06) 485.72

Money at call and on short notice 1,003.04 - - 96.46 41.51 (891.04) 249.97 - - - - (96.46) 153.51
Investments 5,804.37 39.78 321.61 163.79 46.60 (32.41) 6,343.74 55.17 10.36 - - - 6,409.27
Loans and advances 26,167.60 651.03 - 610.92 53.96 (0.52) 27,482.99 695.74 91.90 - 111.81 (92.34) 28,290.09
Fixed assets 448.54 0.67 - - 0.57 (0.88) 448.90 52.89 1.44 - 0.01 - 503.25
Other assets 2,021.69 9.92 28.91 0.08 18.62 (591.51) 1,487.71 23.71 9.82 3.16 4.77 (640.51) 888.65
Non-banking assets 33.42 - - - - - 33.42 - - - - - 33.42
Total Assets 37,710.19 863.05 350.51 871.92 336.06 (1,555.57) 38,576.17 841.12 159.19 7.69 119.20 (846.38) 38,856.99
LIABILITIES AND CAPITAL
Liabilities
Borrowings from other banks,
financial institutions and agents 2,918.50 81.65 - 896.65 - (1,051) 2,845.79 75.59 16.75 - 96.27 (188.62) 2,845.79
Deposits and other accounts 2,8157.10 743.61 - 1.33 210.71 (40.81) 29,071.93 - - - - (17.22) 29,054.72
Other liabilities 3,896.67 37.80 359.22 19.07 8.70 (111.69) 4,209.75 91.18 91.00 - 5.46 (9.82) 4387.57
Total Liabilities 34,972.26 863.05 359.22 917.04 219.41 (1,203.51) 36,127.47 166.77 107.76 - 101.74 (215.66) 36,288.08
Total Shareholders’ Equity 2,737.93 - (8.70) (45.13) 116.65 (352.06) 2,448.69 674.35 51.43 7.69 17.46 (631.91) 2,567.72
Non-controlling interest - - - - - - - - - - - 1.19 1.19
Total Liabilities & Shareholders’ Equity 37,710.19 863.05 350.51 871.92 336.06 (1,555.57) 38,576.17 841.12 159.19 7.69 119.20 (846.38) 38,856.99
1.11 Compliance of International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs)
While preparing the financial statements, Bank applied most of the International Accounting Standards (IASs) and International Financial
Reporting Standards (IFRSs) as adopted by the Institute of Chartered Accountants of Bangladesh as applicable to the Bank:

Sl no. Name of IAS No. of IAS Status

1 Presentation of Financial Statements 1 Complied
2 Inventories 2 Complied
3 Statement of Cash Flows 7 *
4 Accounting Policies, Changes in Accounting Estimates and Errors 8 Complied
5 Events after the Reporting Period 10 Complied
6 Income Taxes 12 Complied
7 Property, Plant and Equipment 16 Complied
8 Employee Benefits 19 Complied
9 Accounting for Govt. Grants and Disclosure of Govt. Assistance 20 N/A
10 The Effects of Changes in Foreign Exchanges Rates 21 Complied
11 Borrowing Costs 23 Complied
12 Related Party Disclosures 24 Complied
13 Accounting and Reporting by Retirement Benefit Plans 26 Complied
14 Separate Financial Statements 27 Complied
15 Investments in Associates and Joint Ventures 28 Complied
16 Financial Reporting in Hyperinflationary Economics 29 N/A
17 Interests in Joint Ventures 31 N/A
18 Financial Instruments: Presentation 32 *
19 Earnings Per Share 33 Complied
20 Interim Financial Reporting 34 Complied
21 Impairment of Assets 36 Complied
22 Provisions, Contingent Liabilities and Contingent Assets 37 Complied
23 Intangible Assets 38 Complied
24 Investment Property 40 Complied
25 Agriculture 41 N/A

Sl no. Name of IFRS No. of IFRS Status

1 First-time Adoption of International Financial Reporting Standards 1 N/A
2 Share-Based Payment 2 N/A
3 Business Combinations 3 N/A
4 Insurance Contracts 4 N/A
5 Non-Current Assets Held for Sale and Discontinued Operations 5 Complied
6 Exploration for and Evaluation of Mineral Resources 6 N/A
7 Financial Instruments: Disclosures 7 *
8 Operating Segments 8 Complied
9 Financial Instruments 9 *
10 Consolidated Financial statements 10 Complied
11 Joint Arrangements 11 N/A
12 Disclosure of interests in other Entities 12 Complied
13 Fair Value Measurement 13 Complied
14 Regulatory Deferral Accounts 14 N/A
15 Revenue from Contracts with Customers 15 Complied
16 Leases 16 Complied
* Relevant disclosures are made according to the requirement of Bangladesh Bank.

AB Bank | Annual Report 2020 | 133

 1.12 Compliance of Bangladesh Bank regulations over IAS/IFRS
In the following cases Bank followed Bangladesh Bank regulations over IFRS/IAS:
Sl Issues IAS/IFRS Bangladesh Bank
no.
1 Presentation As per IAS 1 Other Comprehensive Income is a In accordance with BRPD Circular no. 14 dated 25 June
component of financial statements or the elements of 2003 financial statements do not require to include
Other Comprehensive Income are to be included in a the statement of Other Comprehensive Income and
single Comprehensive income statement and there is no appropriation of profit is provided in the face of Profit
requirement to show appropriation of profit in the face of and Loss Account. Intangible assets are provided
statement of comprehensive income. Again, Intangible under the head Fixed Assets.
assets must be identified, recognised, presented in the
face of the balance sheet and the disclosures to be given
as per IAS 38.
2 Cash and cash As per IAS 7 cash comprises cash in hand & demand Balance with Bangladesh Bank is treated as cash and
equivalents deposits and Cash equivalents recognises the short-term, cash equivalents as per BRPD Circular no. 14 dated 25
highly liquid investments that are readily convertible to June 2003.
known amounts of cash and which are subject to an
insignificant risk of changes in value. Therefore, some
items like- Balance with Bangladesh Bank on account of
CRR/ SLR are not part of cash and cash equivalents as
those are not readily available.
3 Investment As per requirements of IFRS 9, classification and As per BRPD Circular no. 14 dated 25 June 2003,
in shares and measurement of investment in shares and securities provisions should be made for any loss arising from the
securities will depend on how these are managed (the entity’s diminution in value of investments. But, as per DOS
business model) and their contractual cash flow Circular No.04 dated 24 November 2011, provisions
characteristics. Based on these factors the investment can be made for any loss arising from the diminution
in shares and securities generally falls either under at in value of investments after netting of gain.
“fair value through profit and loss account (FVTPL)”
or at “fair value through other comprehensive income
(FVOCI)” where any change in the fair value of securities
measured under FVTPL is taken to the profit and loss
account and any changes in the fair value of securities
measured under FVOCI is transferred to equity through
other comprehensive income.
4 Revaluation As per requirement of IFRS 9, an entity shall classify As per Bangladesh Bank DOS circular letter no. 05
gains/ financial assets as subsequently measured at amortised dated 26 May 2008 and DOS circular no. 05 dated
losses on cost, fair value through other comprehensive income 28 January 2009. HTM measured at amortised cost
Government or fair value through profit or loss. For securities like at each year end by taking into account any discount
securities treasury bills and treasury bonds designated as “held or premium in acquisition. Amortised amount of such
for trading” measured at fair value, gains and losses are premium are booked into Profit and Loss Account or
recognised entirely in profit or loss (fair value through discount is booked to reserve until maturity/disposal.
profit or loss, FVTPL). T-bills and T-Bonds designated In case of HFT after initial recognition, investments are
as “held to maturity” are measured at amortized cost revalued at mark to market on weekly basis. Decrease
method and interest income is recognized through the in the book value is recognised in the Profit and Loss
profit and loss account. Account and any increase is transferred to revaluation
reserve account.
5 Non-banking No indication of Non-banking asset is found in any IFRS. As per BRPD circular No. 14, dated 25 June 2003 there
asset must exist a face item named Non-banking asset.
6 Repo and As per IFRS 9 when an entity sells a financial asset and As per Bangladesh bank Circulars / guidelines, when
reverse repo simultaneously enters into an agreement to repurchase a Bank sells a financial asset and simultaneously
transactions the asset (or a similar asset) at a fixed price on a future enters into an agreement to repurchase the asset
date (repo), the arrangement is treated as a loan and (or a similar asset) at a fixed price on future date
the underlying asset continues to be recognized at (REPO), the arrangement is accounted for as a normal
amortised cost in the entity’s financial statements. The sales transactions and the financial assets should be
difference between selling price and repurchase price will derecognized in the seller’s book and recognized in the
be treated as interest expense. The same rule applies to buyer’s book.
the opposite side of the transaction (reverse repo).
7 Provision on As per IFRS 9, an entity shall recognise an impairment As per BRPD circular No.14 (23 September 2012),
loans and allowance on loans and advances based on expected BRPD circular No. 19 (27 December 2012), BRPD
advances/ credit losses. Expected credit losses are required to be circular No. 05 (29 May 2013), BRPD Circular No.
investments measured through a loss allowance at an amount equal 12 (20 August 2017) and BRPD Circular No. 15 (27
to: (i) the 12-month expected credit losses (expected September 2017), a general provision at 0.25% to 5%
credit losses that result from those default events on the under different categories of unclassified loans (good/
financial instrument that are possible within 12 months standard loans) has to be maintained regardless of
after the reporting date); or (ii) full lifetime expected objective evidence of impairment. Also provision for
credit losses (expected credit losses that result from sub-standard loans, doubtful loans and bad losses has
all possible default events over the life of the financial to be provided at 20%, 50% and 100% respectively
instrument). For loans & Advances whose credit risk for loans and advances depending on the duration of
increased significantly since initial recognition, a loss overdue. Again as per BRPD circular no. 10 dated 18
allowance for full lifetime expected credit losses is September 2007 and BRPD circular no. 14 dated 23
required. For loans & advances whose credit risk didn’t September 2012, a general provision at 1% is required
increased significantly, a loss allowance equal to the to be provided for all off-balance sheet exposures.
12-month expected credit losses is required. Such provision policies are not specifically in line with
those prescribed by IFRS 9. Also for disclosure such
provision shall be shown as liability as opposed to
netting of against loans and advances.

134 | AB Bank | Annual Report 2020

 8 Recognition Loans and advances to customers are generally classified As per BRPD circular no. 14 dated 23 September 2012,
of interest in at amortised cost as per IFRS 9 and interest income is once a loan is classified; interest on such loans are
suspense recognised by using the effective interest rate method not allowed to be recognised as income, rather the
to the gross carrying amount over the term of the loan. corresponding amount needs to be credited to interest
Once a loan subsequently become credit- impaired, suspense account, which is presented as liability in the
interest income is recognized in profit and loss account balance sheet.
on the same basis based on revised carrying amount.
9 Cash flow The cash flow statement can be prepared using either As per BRPD circular No. 14, dated 25 June 2003 cash
statement the direct method or the indirect method as per IAS 7. flow is the mixture of direct and indirect methods.
The presentation is selected to present these cash flows
in a manner that is most appropriate for the business
or industry. The method selected is applied consistently.
10 Financial As per IFRS 9, financial guarantees are contracts As per BRPD Circular no. 14 dated 25 June 2003,
guarantee that require the issuer to make specified payments to financial guarantees such as Letter of Credit, Letter of
reimburse the holder for a loss it incurs because a specified Guarantee, Acceptance and Endorsement, etc. will be
debtors fails to make payment when due in accordance treated as off balance sheet items.
with the original or modified terms of a debt instrument.
Financial guarantee liabilities are recognised initially at
their fair value plus transaction costs that are directly
attributable to the issue of the financial liabilities. The
financial guarantee liability is subsequently measured at
the higher of the amount of loss allowance for expected
credit losses as per impairment requirement and the
amount initially recognised less, income recognised in
accordance with the principles of IFRS 15. Financial
guarantees are included within other liabilities.
1.13 Regulatory and legal compliance
The Bank complied with the requirements of the following Act, regulations and guidelines:
i. The Bank Company Act, 1991 (amendment up to 2018)
ii. The Companies Act, 1994
iii. Rules, regulations and circulars issued by the Bangladesh Bank from time to time
iv. The Securities and Exchange Rules, 1987
v. The Securities and Exchange Ordinance, 1969
vi. The Securities and Exchange Commission Act, 1993
vii. The Securities and Exchange Commission (Public Issues) Rules, 2015
viii. The Income Tax Ordinance and Rules, 1984
ix. The Value Added Tax and Supplementary Duty Act, 2012
x. The Value Added Tax and Supplementary Duty Rules, 2016
xi. The Financial Reporting Act 2015 and other regulations of Financial Reporting Council, Bangladesh
xii. Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) Listing Regulations, 2015
xiii. Central Depository Bangladesh Limited (CDBL) rules and regulations
xiv. Financial Reporting Disclosure (as per BSEC Notification No. BSEC/CMRRCD/2006-158/208/Admin/81 dated, 20 June 2018)
xv. Other applicable laws and regulations

1.14 Reporting period

Sl no. Name of the entity/segment Reporting period
1 AB Bank Limited 01 January 2020 to 31 December 2020
2 Off Shore Banking Unit 01 January 2020 to 31 December 2020
3 Mumbai Branch, India 01 January 2020 to 31 December 2020
4 AB Investment Limited 01 January 2020 to 31 December 2020
5 AB Securities Limited 01 January 2020 to 31 December 2020
6 Cashlink Bangladesh Limited 01 January 2020 to 31 December 2020
7 AB International Finance Limited 01 January 2020 to 31 December 2020
8 Arab Bangladesh Bank Foundation 01 January 2020 to 31 December 2020

AB Bank | Annual Report 2020 | 135

 1.15 Risk management
As a financial intermediary, the Bank is exposed to various types of risks. Risk is defined as uncertainties resulting in adverse
variation of profitability or in losses, financial or otherwise. The risk management of the Bank covers core risk areas of banking
as defined by Bangladesh Bank and Pillar-2 risk as well. The core risks are credit risk, asset liability risks, money laundering risks,
internal control and compliance risks, information technology risks and foreign exchange risks. Some other risks those also affect
banking business are liquidity risk, market risk interest rate risk, equity risk, operational risk, reputation risk, strategic risks, credit
concentration risks, environmental and climate change risks, etc.
The objective of the risk management framework at the bank is that the Bank understands, evaluates and takes well calculative
risks and thereby safeguarding the Bank’s capital, its financial resources and profitability from various business risks through its
own measures, policies and procedures established to address these risks and also implementing Bangladesh Bank’s guidelines
and following some of the best practices as under:
Credit risk
It arises mainly from lending, trade finance and treasury businesses. This can be described as potential loss arising from the
failure of a counter party to perform as per contractual agreement with the Bank. The failure may result from unwillingness of the
counter party or decline in his/ her financial condition. Therefore, the Bank’s credit risk management activities have been designed
to address all these issues.
The Bank has segregated duties of the officers / executives involved in credit related activities. A separate Department at Head Office
is entrusted with the duties of maintaining effective relationship with the customers, marketing of credit products, exploring new
business opportunities, etc. Moreover, credit approval, administration, monitoring and recovery functions have been segregated.
Credit Risk Management Division is entrusted with the duties of maintaining asset quality, assessing risk in lending to a particular
customer, sanctioning credit, formulating policy / strategy for lending operation, etc. Adequate provision has been made on
classified loans / investments. A thorough assessment is done before sanction of any credit facility at Credit Risk Management
Division. The risk assessment includes borrower risk analysis, financial analysis, industry analysis, historical performance of the
customer, security of the proposed credit facility, etc. The assessment process starts at respective business wing by the relationship
manager /officer and ends at Credit Risk Management Division when it is approved / declined by the competent authority. In
determining single borrower / large loan limit, the instructions of Bangladesh Bank are strictly followed. Internal audit is conducted
at periodical intervals to ensure compliance of Bank’s and Regulatory polices. Loans are classified as per Bangladesh Bank’s
guidelines.
Market risk
Market risk arises from potential losses of the exposures of a bank from on-balance sheet and off-balance sheet items, i.e adverse
movements in market rates/interest rates, foreign exchange rates, equity prices, credit spreads and/or commodity prices.
Operational risk
Operational risk address the risk associated with fraud, forgery, unauthorized activities, error, omission, system failure and external
events among others. Bank is managing these risks through written procedures, regular training and awareness programs.
Departmental Control Function Checklist (DCFCL), Quarterly Operations Report, Loan Documentation Checklist etc. are in place
covering all probable risks associated with bank’s business and operations. Surprise inspections are also made on a regular basis
to make sure that all control tools are functioning properly.
Foreign exchange risk
Foreign exchange risk is defined as the potential change in earnings due to change in market prices. The foreign exchange risk
of the Bank is minimal as all the transactions are carried out on behalf of the customers against underlying L/C commitments and
other remittance requirements. Financial Institution and Treasury (FIT) Division independently conducted the foreign exchange
transactions and the Mid office and the Back office of Treasury is responsible for verification of the deals and passing of their entries in
the books of account. All foreign exchange transactions are revalued at Market rate as determined by Bangladesh Bank at the month
end. All nostro accounts are reconciled on a monthly basis and outstanding entry is reviewed by the management for its settlement.
The position maintained by the Bank at the end of day was within the stipulated limit prescribed by the Bangladesh Bank.
Interest rate risk
Interest rate risk may arise from trading portfolio and non- trading portfolio. The trading portfolio of the bank consists of government
treasury bills, bond, etc. The short term movement in interest rate is negligible or nil. Interest rate risk of non-trading business
arises from mismatches between the future yield of an asset and its funding cost. Asset Liability Committee (ALCO) monitors the
interest rate movement on a regular basis.
Equity risk
Equity risk arises from movement in market value of equities held. The risks are monitored by the Investment Banking Division under
a well-designed policy framework. Adequate provision was maintained by the Bank for diminution of market value of Investments.

Liquidity risk
The objective of liquidity risk management is to ensure that all foreseeable funding commitments and deposit withdrawals can be
met when due. To this end, the Bank is maintaining a diversified and stable funding base comprising of core retail and corporate
deposits and institutional balance. Management of liquidity and funding is carried out by Financial Institution and Treasury (FIT)
Division under approved guidelines. FIT front office is supported by a very structured Mid Office and Back Office. The liquidity
management is monitored by Asset Liability Committee (ALCO) on a regular basis. A written contingency plan is in place to manage
extreme situation.

136 | AB Bank | Annual Report 2020

 Risk arising from money laundering
AB Bank Limited considers prevention of money laundering risk not only as a compliance requirement imposed by the law of the
country but also as one of its core business values. The board of directors and senior management are firmly committed to combat
money laundering. Every year, a message from the President and Managing Director’s office goes to all employees’ of the Bank
reiterating the importance of the issue. There is a high profile Central Compliance Unit (CCU) in place to oversee the anti-money
laundering activities. The president and managing director himself supervise the function of CCU’s. Operation has separated and
dedicated headcount for surveillance of the anti-money laundering functions across the bank. Training and awareness programs
are regularly held to make all employees’ aware of the issue. Bank has also undertaken campaign against money laundering in
electronic media.
Internal control and compliance risk
Internal Control and Compliance Division (ICCD) of the bank performs three core functions - Internal Audit, Monitoring and
Compliance in order to mitigate the internal control and compliance risk. ICCD conducts Risk Based Audit and Annual Audit of the
Branches. Audit of Head Office Divisions also come under ICCD. ICCD monitors compliance of Internal as well as Bangladesh Bank
Audit Reports including Bangladesh Bank Special Audit Reports on Core Risks. Besides, Special Audit on some specific issues like
year-end Cash Position, Security Stock verification etc. are also done by ICCD.
Information and communication technology (ICT) security risk
The Bank follows the Bangladesh Bank ICT Policies along with other leading industry compliances such as PCI DSS. AB Bank IT
Infrastructure has built on Microsoft Active Directory along with Microsoft Exchange Email System with enhanced cloud security.
Bank has Next Generation Firewall (NGF) in our core and perimeter zone to protect the organization from external threats. NGF
runs only a few services on board and reserves the majority of resources for ingress-egress traffic. For endpoint security Bank has
advanced persistent threat (APT) malware protection and Anti Bot protection which are components of Next Generation Firewall.
Bank has introduced Multi-Factor Authentication (MFA), Mobile Protection, Remote Access, and Virtual Private Networks (VPN).
AB Core Infrastructure have High Availability and Disaster Recovery Site (DRS) with near real time synchronization which ensure
the highest level of uptime round the year. End User Security Awareness Training is one of focus area to ensure the total security
of the bank. Bank regularly arrange Security Awareness training for the employees as per the regulations of Bangladesh Bank.
1.16 Environment Risk Management (ERM)
Bangladesh Bank issued Guidelines on Environment Risk Management (ERM) to streamline solutions for managing the environmental
risks in the financial sector – Ref: BRPD Circular No.01/2011 dated 30 January 2011 and BRPD Circular no.02 dated 27 February
2011 respectively. Bank accordingly introduced the Guideline on Environment Risk Management on 15 June 2011. These ERM
guidelines are an attempt to incorporate the environmental impact of a business into the lending process, so that the environment
gets due consideration in the appraisal process.
Environmental risk is a facilitating element of credit risk arising from such environmental issues. These can be due to environmental
impacts caused by and / or due to the prevailing environmental conditions. These increase risks as they bring an element of
uncertainty or possibility of loss in the context of a financing transaction.
The Bank is complying with Bangladesh Bank Guidelines to the above effect from time to time and reporting activities on ERM and
Green Banking every quarter.
1.17 Credit rating of the Bank
Year Date of Rating Long term Short term
Year 2019 & Jan-Sep 2020 December 09, 2020 AA- ST-2
Year 2018 & Jan-Sep 2019 December 19, 2019 A+ ST-2
Jan to Sept 2018 January 10, 2019 A2 ST-2
Jan to Dec 2017 June 04, 2018 A1 ST-2
Jan to Dec 2016 May 28, 2017 A1 ST-2
Jan to Dec 2015 May 19, 2016 AA3 ST-2
Jan to Dec 2014 April 30, 2015 AA3 ST-2

1.18 Events after the reporting period

As per IAS -10 “Events after the Reporting Period” events after the reporting period are those events, favorable and unfavorable,
that occur between the end of the reporting period and the date when the financial statements are authorised for issue. Two types
of events can be identified:
a) those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after the reporting period); and
b) those that are indicative of conditions that arose after the reporting period (non-adjusting events after the reporting period).
Except the pandemic issue, there was no material event occurred after the reporting period which could affect the values stated
in the financial statements.

AB Bank | Annual Report 2020 | 137

 1.19 Related party disclosures
A party is related to the company if:
(i) directly or indirectly through one or more intermediaries, the party controls, is controlled by, or is under common control
with, the company; has an interest in the company that gives it significant influence over the company; or has joint control
over the company;
(ii) the party is an associate;
(iii) the party is a joint venture;
(iv) the party is a member of the key management personnel of the Company or its parent;
(v) the party is a close member of the family of any individual referred to in (i) or (iv);
(vi) the party is an entity that is controlled, jointly controlled or significantly influenced by or for which significant voting power
in such entity resides with, directly or indirectly, any individual referred to in (iv) or (v); or
(vii) the party is a post-employment benefit plan for the benefit of employees of the company, or of any entity that is a related
party of the company.
a) Significant contracts where the Bank is a party and wherein Directors have interest:
Name of Director and
Name of contract Name of the party Relationship
related by
Lease agreement with Mohakhali and Pacific Industries Ltd. Mr. Khairul Alam Nominated Director of
Savar Branch of ABBL Choudhury Pacific Industries Ltd. In
ABBL Board
Lease agreement with ABBL Elite International Ltd. Feroz Ahmed Common Director

b) Related party transactions:

Name of related party Relationship Nature of transaction Amount in BDT
Pacific Industries Ltd. Common Director Office Rent 15,270,390
Elite International Ltd. Common Director Office Rent 2,484,000

c) Loans/placement given to subsidiary of the Bank

Sl.
Name of Party Connection with party Nature of transaction Amount in BDT
no.
01 AB Investment Limited 99.99% owned Subsidiary Loans and advances 755,898,828
02 AB Securities Limited 99.91% owned Subsidiary Loans and advances 167,548,156
03 AB International Finance Limited Fully owned (100%) Subsidiary Placement through OBU 964,604,550
Total loans/placement to subsidiary 1,888,051,534

d) Key Management personnel compensation

Transactions with Key Management personnel of the Bank for the period January – December 2020 is given below:

Particulars Amount in BDT

Short-term employee benefit 151,391,398

Post-employment benefits -
Other long-term employee benefits -
Termination benefits -

Key Management personnel includes President and Managing Director, Additional Managing Director, 04 nos. Deputy Managing
Director, 11 nos Senior Executive Vice President, Company Secretary, Head of Internal Control & Compliance Division and Chief
Financial Officer.
Key management personnel get gratuity and superannuation fund benefits are provided as per service rule if eligible.

138 | AB Bank | Annual Report 2020

1.20 Audit Committee of the Board of Directors
i) Particulars of Audit Committee
The Audit Committee of the Board was constituted by the Board of Directors of the Bank in accordance with the BRPD Circular No.
11 dated 27 October 2013 issued by Bangladesh Bank. Composition of the Audit Committee (2020) is as below:

Status Educational/
Sl. Status with
Name with Duration professional
no. Bank Committee qualification
1 Mr. Kaiser A. Chowdhury* Independent Chairman With effect from 20 Masters of Arts
Director April 2019 (Economics)
2 Mr. Shafiqul Alam Independent Member With effect from 13 MSC from Dhaka
Director October, 2020 University
3 Mr. Shajir Ahmed Director Member With effect from 15 B.SC from University of
September 2019 London
* Mr. Kaiser A. Chowdhury has resigned from Board of Directors of the Bank on its 702nd Board Meeting held on 18 January 2021.
The Company Secretary acts as the Secretary of the Audit Committee of the Board.
ii) Meeting held with Audit Committee
During the year 2020, the Audit Committee conducted 09 (nine ) meeting in which, among others, focused on the following
activities (not an exhaustive test):

- Reviewed Internal Audit Plan for the year 2020

- Reviewed Draft Financial Statements and after discussing with the External Auditors recommended it to the Board for their
considerations.
- Reviewed the Management Letter issued by the External Auditors, Management responses, thereto and corrective measures
taken by the Bank to avoid recurrence of the lapses mentioned therein.
- Reviews quarterly and half-yearly Financial Statements 2020 of the Bank.
- Reviewed significant internal Audit findings and advised corrective actions.
- Reviewed Comprehensive Inspection Report of Bangladesh Bank including status of compliance thereof.
- Reviewed branch inspection reports and Head Office functions conducted by the Department of Internal Control & Compliance
(DICC)
iii) Steps taken for implementation on effective internal control procedure of the Bank
The Committee placed its report regularly to the Board of Directors of the Bank mentioning its review results and recommendations
on internal control system compliance of rule and regulations and establishment of good governance within the organization.
1.21 Shariah Council
Members of AB Bank Shariah Supervisory Committee are as under:
Sl
Name Status with the Committee Educational/ Professional Qualification
no.
L.L.B, Dhaka University. President of Governing
1 Jb. Justice Siddiqur Rahman Miah Chairman body, Islamic Foundation Bangladesh fomer Justice
Bangladesh Suprime Court. Bangladesh
Jb. Tarique Afzal, President & Masters of Business Administration - MBA (Major:
2 Managing Director , ABBL Vice-Chairman Finance & Marketing), Victoria University, Melbourne,
Australia
Jb.Kaiser A. Chowdhury, Director,
3 Member Masters of Arts (Economics), Dhaka University
AB Bank Ltd.*
Jb.Firoz Ahmed, Director, AB Bank
4 Member B.Com (Hons.) Accounting, Chittagoang University
Ltd.
Jb. Najmul Ehsan,Chief of Credit
MBA, Institute of Business Administration, Dhaka
5 Review and Process Management, Member
University
AB Bank Ltd.
6 Jb. Iftekhar Enam Awal, Head of SME Member M. Com.(Finance), Dhaka University
Prominent author and rechearch Scholar of Quran
7 Jb. Moulana Muhammad Musa Member-Secretary & Hadith. Kamil, Madrasah Edu. Board, B.Com
(Hons) M.Com, Dhaka University,
* Mr. Kaiser A. Chowdhury has resigned from Board of Directors of the Bank on its 702nd Board Meeting held on 18 January 2021.

AB Bank | Annual Report 2020 | 139

 During the year 2020, AB Bank Shariah Supervisory Committee met Tow times and reviewed different operational issues, including
those referred to it by the Management of the Bank and gave opinion & decisions related to Islamic Shariah.
The important issues attended by the Shariah Supervisory Committee during the year 2020, are:
- Reviewing the Half-Yearly Shariah Audit Report (January-June, 2019) of Islami Banking Branch and its observations.
- Approving the Final Accounts, 2019 of Islami Banking Branch.
- Approving the Annual Report of Shariah Supervisory Committee for the year 2019 on Islamic banking operation of the Bank.
- Reviewing the Half-Yearly Shariah Audit Report (July-December,2019) of Islami Banking Branch and its observations.
- Gave opinion on ‘Islamic Banking Guideline’ Provide by Bangladesh Bank.
- Approving of Mourning news of Late M.Azizul Huq, Former Chairman of AB Bank Shariah Supervisory Committee

1.22 Auditors of Subsidiaries

Name of the Company Relationship Name of the Auditors
ACNABIN
AB Investment Limited (ABIL) Subsidiary
Chartered Accountants
AHMED KHAN & CO.
AB Securities Limited (ABSL) Subsidiary
Chartered Accountants
SHAHA & CO.
Cashlink Bangladesh Limited (CBL) Subsidiary
Chartered Accountants
T.O. YIP & CO. LTD.
AB International Finance Limited (ABIFL) Subsidiary
Certified Public Accountants
S.R. Bose & Co.
Arab Bangladesh Bank Foundation (ABBF) Subsidiary
Chartered Accountants

1.23 Impact of COVID-19

On 11 March 2020, the World Health Organization (WHO) declared a global pandemic due to Corona Virus related respiratory
disease, commonly known as COVID-19. To contain the spread of this disease along with many other countries of the world,
the Government of Bangladesh has also taken a number of measures such as declaration of general holiday, enforcement of
lock down, social distancing, etc. As a result of these measures, all businesses and economic activities in the country have been
adversely affected and this has also affected the Bank. Although the business operation and profitability of the Bank have been
impacted by COVID-19, but due to the constantly changing nature of the situation and lack of certainty at present regarding how
long this situation will prevail, the potential impact of COVID-19 related matters on the Bank’s operation and financial results
cannot be reasonably assessed. The management of the Bank assessed the going concern and found no uncertainty regarding
this for the upcoming 12 (twelve) months due to COVID-19. The global economy including Bangladesh has been seriously affected
since March 2020 due to the outbreak of COVID-19 that has caused serious disruption in Export and Import business, especially in
the month of April and May 2020. As a result, commission income has been reduced significantly during the period.

1.24 Going Concern

The Financial Statements have been prepared on a going concern principle which is the assumption that an entity will remain in
business for the foreseeable future. Conversely, the Bank has neither any intention nor any legal or regulatory compulsion to halt
operations and liquidate its assets in the near term at what may be very low fire-sale prices. Key financial parameters (including
liquidity, profitability, asset quality and credit rating) of the Bank continued to demonstrate a healthy trend for a couple of years.
The management is not aware of any material uncertainties that may cause to believe that significant doubt upon the Bank’s ability
to continue as a going concern.

1.25 Worker’s Profit Participation Fund (WPPF)

In consistent with widely accepted industry practice and in line section 11(1) of the Banking Companies Act, 1991 (As amended
up to date) and subsequent clarification given by Bank & Financial Industries Division (BFID), Ministry of Finance, no provision has
been made by the Bank in the reporting period against Workers’ Profit Participation Fund (WPPF).”

2. General
i. Figures relating to the previous year included in this report have been rearranged, wherever considered necessary, to make
them comparable with those of the current year.
ii. Figures in these notes and in the annexed financial statements have been rounded off to the nearest Taka.
iii. These notes form an integral part of the annexed financial statements and accordingly are to be read in conjunction therewith.

140 | AB Bank | Annual Report 2020

AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020

31.12.2020 31.12.2019
Taka Taka
3. Cash

Cash in hand (Note 3.1) 1,009,893,886 1,136,100,637

Balance with Bangladesh Bank and its agent bank(s) (Note 3.2) 19,920,756,233 18,736,346,733
20,930,650,119 19,872,447,371

3 (a) Consolidated Cash

AB Bank Limited 20,930,650,119 19,872,447,371

AB Investments Limited 25,000 25,000
AB International Finance Limited 28,096 62,958
AB Securities Limited 35,000 35,000
Cashlink Bangladesh Limited (CBL) 56,889 4,729
20,930,795,104 19,872,575,058

3.1 Cash in hand

In local currency 967,306,177 1,112,273,983

In foreign currency 42,587,709 23,826,654
1,009,893,886 1,136,100,637

3.1(a) Consolidated Cash in hand

AB Bank Limited 1,009,893,886 1,136,100,637

AB Investments Limited 25,000 25,000
AB International Finance Limited 28,096 62,958
AB Securities Limited 35,000 35,000
Cashlink Bangladesh Limited (CBL) 56,889 4,729
1,010,038,871 1,136,228,324

3.2 Balance with Bangladesh Bank and its agent bank(s)

Balance with Bangladesh Bank

In local currency (Note: 3.2.1) 12,333,756,678 16,933,745,693

In foreign currency (Note: 3.2.2) 7,185,461,249 1,325,358,012
19,519,217,927 18,259,103,705
Sonali Bank Limited 401,538,306 477,243,028
(as an agent bank of Bangladesh Bank) - local currency 19,920,756,233 18,736,346,733

3.2.1 Balance with Bangladesh Bank- local currency

Balance as per Bank Ledger 12,333,756,678 16,933,745,693

Unresponded debit entries 3,962,064 27,432,347

Bangladesh Bank statement 3,503,071 27,050,707
AB Bank’s ledger 458,993 381,640

Unresponded credit entries 215,464,260 71,797,332

Bangladesh Bank statement 206,630,001 70,971,774
AB Bank’s ledger 8,834,259 825,557
12,545,258,875 16,978,110,678

AB Bank | Annual Report 2020 | 141

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020

Bangladesh Bank Account represents outstanding transactions (net) originated but yet to be responded at the Balance Sheet date.
However, the status of unresponded entries as of 31 December 2020 is given below:

Number of Unresponded
Unresponded amount in BDT
Year of Unreconciliation Entries
Debit Credit Debit Credit
Less than 3 months 6 10 3,962,064 215,464,260
3 months to less than 6 months - - - -
6 months to less than 12 months - - - -
12 months and more - - - -
Total 6 10 3,962,064 215,464,260

31.12.2020 31.12.2019
Taka Taka
3.2.2 Balance with Bangladesh Bank-foreign currency

Balance as per Bank Ledger 7,185,461,249 1,325,358,012

Unresponded debit entries 5,340,200 -

Bangladesh Bank statement - -
AB Bank’s ledger 5,340,200 -

Unresponded credit entries 37,565,433 230,889,365

Bangladesh Bank statement 21,210,223 147,117,201
AB Bank’s ledger 16,355,210 83,772,165
Balance as per Bangladesh Bank Statement 7,217,686,482 1,556,247,378

Bangladesh Bank Account represents outstanding transactions (net) originated but yet to be responded at the Balance sheet date.
However the status of unresponded entries as of 31 December 2020 is given below:

Number of Unresponded
Unresponded amount in BDT
Entries
Year of Unreconciliation
Debit Credit Debit Credit

Less than 3 months 1 59 5,340,200 33,299,045

3 months to less than 6 months - 3 - 4,266,388
6 months to less than 12 months - - - -
12 months and more - - - -
Total 1 62 5,340,200 37,565,433

3.2 (a) Consolidated Balance with Bangladesh Bank and its agent bank (s)

AB Bank Limited 19,920,756,233 18,736,346,733

AB Investments Limited - -
AB International Finance Limited - -
AB Securities Limited - -
Cashlink Bangladesh Limited (CBL) - -
19,920,756,233 18,736,346,733

3.3 Statutory deposits

Conventional Banking (inside Bangladesh)

Cash Reserve Requirement and Statutory Liquidity Ratio

Cash reserve requirement and statutory liquidity ratio have been calculated and maintained in accordance with section 33 of
the Bank Company Act 1991 (amendment up to 2018), Bangladesh Bank’s DOS circular no. 01 dated 19 January 2014 and MPD
Circular No. 03 dated 09 April 2020.

142 | AB Bank | Annual Report 2020

AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka

The statutory cash reserve requirement is on the Bank’s time and demand liabilities at the rate 4.00% and has been calculated and
maintained with Bangladesh Bank in current account while statutory liquidity ratio of 13.00% is required, on the same liabilities is
also maintained in the form of Government Securities and other regulatory components which supported to SLR. Both the reserves
are maintained by the Bank in excess of the statutory requirements, as shown below:

(a) Cash Reserve Requirement (CRR)

As per Bangladesh Bank MPD Circular No.-03 dated 09 April 2020, Bank has to maintain CRR @ 4.00% on fortnightly cumulative
average basis and minimum CRR @ 3.50% on daily basis.
i) Daily position as on the reporting date
Required reserve 10,729,742,384 14,624,226,903
Actual reserve maintained 12,270,941,451 16,685,285,892
Surplus 1,541,199,067 2,061,058,989

As per Bank ledger, balance with Bangladesh Bank (local currency) is BDT 12,073,050,626 while as per Bangladesh Bank Statements
balance is BDT 12,281,941,451. Difference between the balance as per Bank Ledger and as per the Bangladesh Bank Statement
is properly reconciled and adjusted accordingly.

ii. Fortnightly cumulative position

As per Bangladesh Bank MPD Circular No. 03 dated 09 April 2020 , Bank has to maintain CRR @ 4.00% on fortnightly cumulative
average basis.

Required reserve (4.00% of total time & demand liabilities) 182,405,620,528 248,611,857,351
Actual reserve maintained 186,988,926,189 254,990,473,770
Surplus 4,583,305,661 6,378,616,419

(b) Statutory Liquidity Ratio (SLR)

Required reserve (13% of total time & demand liabilities) 34,874,383,466 34,566,354,498
Actual reserve maintained 56,369,820,548 54,656,019,144
Total surplus 21,495,437,082 20,089,664,646

As per Bangladesh Bank MPD Circular No. 03 dated 09 April 2020, all scheduled Banks have to maintain CRR and SLR @ 4.00%
and @ 13.00% respectively of their total time and demand liabilities on bi-weekly average basis, where the Bank maintained @
4.57% and @ 21.01% respectively at the year end.

(c) Components of Statutory Liquidity Ratio (SLR)

Cash in hand 1,001,530,477 1,127,677,409

Balance with Sonali Bank 401,538,306 477,243,028
HTM Securities 36,434,249,577 32,553,153,570
HFT Securities 16,991,303,121 18,436,886,147
Excess Reserve of CRR 1,541,199,067 2,061,058,989
56,369,820,548 54,656,019,144

Islamic Banking
Cash Reserve Requirement and Statutory Liquidity Ratio

Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in accordance with
section 33 of the Banking Companies Act, 1991 (amendment up to 2018) and subsequent Bangladesh Bank’s DOS circular no. 01
dated 19 January 2020 and MPD Circular No. 03 dated 09 April 2020.

The Statutory Cash Reserve is required on the Bank’s Time and Demand Liabilities at the rate of 4.00 % which has been calculated
and maintained with Bangladesh Bank in Al-Wadeeah Current Account while Statutory Liquidity Ratio of 5.50% is required including
excess amount of CRR on the same liabilities. The required amount maintained in the form of Bangladesh Government Islami
Investment Bond (BGIIB), Bangladesh Government Investment Sukuk (BGIS) Cash Balance in the Vault and Foreign Currency (FC)
Balance with Bangladesh Bank. Both the reserves (CRR & SLR) are maintained in excess, as shown below:

AB Bank | Annual Report 2020 | 143

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka

(a) Cash Reserve Requirement (CRR)

Required reserve 251,615,000 280,362,170

Actual reserve maintained 263,317,424 281,824,758
Surplus 11,702,424 1,462,588

(b) Statutory Liquidity Ratio (SLR)

Total required reserve 345,970,000 280,362,170

Total actual reserve held 414,435,550 285,952,050
Total surplus 68,465,550 5,589,880

Mumbai branch

Cash reserve ratio and statutory liquidity ratio

Cash reserve ratio and statutory liquidity ratio have been calculated and maintained in accordance with Section 24 of the Banking
Companies Act 1949, Section 42 (2) of the RBI Act 1934 and RBI circular nos. DBOD. No.Ret. BC.24/12.01.001/2015-16.

The statutory cash reserve ratio is required on the Bank’s time and demand liabilities at the rate of 4.00 % for 31.12.2018 &
for 31.12.2019 and has been calculated and maintained with RBI in current account while statutory liquidity ratio of 18.50% for
31.12.2019 & 18.00% for 31.12.2020 is required, on the same liabilities is also maintained in the form of treasury bills, and bonds
including foreign currency balance with RBI. Both the reserves are maintained by the Bank in excess of the statutory requirements,
as shown below:

(a) Cash Reserve Ratio (CRR)

Required reserve 7,627,095 9,278,344

Actual reserve maintained 53,180,972 28,774,868
Surplus 45,553,877 19,496,524

(b) Statutory Liquidity Ratio (SLR)

Required reserve 307,637,695 325,891,006

Actual reserve maintained 757,522,153 609,263,692
Surplus 449,884,458 283,372,686

Total required reserve 315,264,790 335,169,350

Total actual reserve held 810,703,125 638,038,560
Surplus 495,438,335 302,869,210

4. Balance with other banks and financial institutions

In Bangladesh (Note: 4.1) 1,212,295,681 960,214,284

Outside Bangladesh (Note: 4.2) 3,151,497,768 4,288,576,060
4,363,793,449 5,248,790,344

4 (a) Consolidated balance with other banks and financial institutions

In Bangladesh (Note: 4.1.a) 1,690,034,988 1,022,559,568

Outside Bangladesh (Nostro Accounts) (Note: 4.2.a) 3,167,205,939 4,292,276,348
4,857,240,927 5,314,835,916

144 | AB Bank | Annual Report 2020

AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka
4.1 In Bangladesh

Current Deposits

Standard Chartered Bank, Dhaka City Centre Branch 26,675,395 2,582,845

Agrani Bank Ltd., Local Office, Dhaka 24,885 24,885
Islami Bank Bangladesh Ltd., Local Office 17,277 17,277
Agrani Bank Ltd., Bhairab Bazar Branch 534 534
Janata Bank Ltd., Jessore Branch 43,225 34,284
Agrani Bank Ltd., Mymensingh Branch 10,000 475
Trust Bank Ltd., Mymensingh Branch 5,046,476 59,166
Janata Bank Ltd., Corporate Branch, Bogura 4,891 4,005,581
Rupali Bank Ltd., Bogura Branch 5,605 5,950
Agrani Bank Ltd., Thana Road Branch, Bogura 6,058,242 7,508,242
RAKUB, Bogura Branch 6,834 7,581
Agrani Bank Ltd., Shaheb Bazar Branch, Rajshahi 5,000 5,000
Janata Bank Ltd., Rajshahi Branch 5,575 5,575
Rupali Bank Ltd., Rajshahi Branch 9,425 9,425
Janata Bank Ltd., Rangpur Branch 6,848,369 647,737
RAKUB, Rangpur Branch - 343
Rupali Bank Ltd., Rangpur Branch 400,395 10,308
Janata Bank Ltd., Chapai Nawabganj Branch 21,251 16,024
Janata Bank Ltd., Sirajgonj Branch 1,177 1,867
45,184,553 14,943,097

Special Notice Deposits

Agrani Bank Ltd., Rangpur Branch 270,016 3,549,371

Agrani Bank Ltd., Saidpur Branch 20,003,505 442
Agrani Bank Ltd., VIP Road Branch, Sylhet 4,734 4,586
Agrani Bank Ltd., Bogura Branch 7,530 7,530
Agrani Bank Ltd., Pabna Branch 1,000 1,000
Janata Bank Ltd., Pabna Branch 1,000 1,000
Agrani Bank Ltd., Jhikargachha Branch 36,686,585 34,794,735
Agrani Bank Ltd., Sirajgonj Branch 492,936 15,514,224
RAKUB, Sirajgonj Branch 770 770
Agrani Bank Ltd., Sir Iqbal Road Branch, Khulna Br. 37,794 32,117
Agrani Bank Ltd., Naogaon Branch 2,024,612 2,564,634
Agrani Bank Ltd., Jashore Branch 3,106 33,106
Agrani Bank Ltd., Moulvi Bazar Branch 965,268 1,468,968
Agrani Bank Ltd., Satkhira Branch 6,568 6,568
Agrani Bank Ltd., Principal Branch, Dhaka 1,510,098 3,204,524
Agrani Bank Ltd., Barisal Branch 82,046 86,253
Bangladesh Krishi Bank, Barisal Branch 5,623 54,157
Janata Bank Ltd., Barisal Branch 76,323 74,532
Standard Chartered Bank, Dhaka City Centre Branch 1,038,033 1,038,033
Islami Bank Bangladesh Ltd., HO Complex Corp Br. 580,873 567,670
Bank Asia Ltd., Islami Banking Window, Shantinagar Br. 40,030 40,083
First Security Islami Bank Ltd, Dilkusha Br. 446,244 555
Al-Arafah Islami Bank Ltd, Dilkusha Branch 2,503,216 1,553,826
Shahjalal Islami Bank Ltd, Dhaka Main Branch 12,309 9,030
The City Bank Ltd, Islamic Banking Br, Paltan, Dhaka 350,446 345,378
Bank Alfalah Ltd, Main Branch, Dhaka 17,031 17,418
Southeast Bank Ltd., Islami Banking Br, Motijheel 54,184 54,096
EXIM Bank Ltd, Motijheel Branch 251,328 50,064

AB Bank | Annual Report 2020 | 145

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka
Special Notice Deposits (cont.)

Agrani Bank Ltd., Islami Bank Window, Amin Court Corp. Br. 5,087 3,317
Jamuna Bank Ltd., Islami Banking Br, Nayabazar 7,957 6,193
Union Bank Ltd., Dilkusha Branch 6,437,941 67,428
Premier Bank Ltd., Islami Banking Br, Mohakhali 696,705 41,485
Pubali Bank Ltd., Islamic Branch, 26 Dilkusha, Dhaka 33,486 36,073
74,654,385 65,229,167

Savings Deposits

Social Islamic Bank Ltd. Principal Branch 12,452,188 37,634

ICB Islamic Bank Ltd., Principal Br, Motijheel 4,556 4,386
12,456,744 42,020

Fixed Deposits

Hajj Finance Company Ltd. 50,000,000 100,000,000

Phoenix Finance and Investment Ltd. 230,000,000 230,000,000
Exim Bank Ltd. 250,000,000 -
Union Capital Ltd. 150,000,000 150,000,000
IIDFC 100,000,000 200,000,000
IPDC Finance Ltd. 150,000,000 150,000,000
Islami Finance Ltd. 150,000,000 -
BD Finance Ltd. - 50,000,000
1,080,000,000 880,000,000
1,212,295,681 960,214,284

4.1.a Consolidated In Bangladesh

AB Bank Limited 1,212,295,681 960,214,284
AB Investment Limited 136,001,739 207,700
AB International Finance Limited - -
AB Securities Limited 456,707,020 81,563,768
Cashlink Bangladesh Limited (CBL) 45,305,051 41,974,568
1,850,309,491 1,083,960,320
Less: Inter company transaction 160,274,503 61,400,752
1,690,034,988 1,022,559,568

4.2 Outside Bangladesh

Current Deposits
The Bank of Tokyo Mitsubishi Limited 445,548 1,197,949
MFT,Yangon 84,800 84,900
JP Morgan Chase Bank 823,199,273 1,124,349,954
Sonali Bank (Kolkata) 6,030,102 1,587,576
Myanmar Economic Bank 34,768 34,809
Citibank NA 136,782,639 355,350,812
Hatton National Bank Limited 57,711,947 1,710,155
Commerz Bank AG 28,800,706 48,782,002
MCB Bank Ltd 3,860,685 4,234,667
Mashreq Bank Psc 128,271,243 1,121,283,017
Nepal Bangladesh Bank Limited 4,099,951 4,219,212
Bank of Bhutan 623,285 1,031,675

146 | AB Bank | Annual Report 2020

AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka
Current Deposits (cont.)
Habib America Bank 97,311,321 229,731,363
Commerz Bank AG 82,490,389 54,526,958
Habib Metro Bank 5,325,350 15,691,603
Commerz BK CAD 965,642 4,251,086
Commerz BK CHF 4,120,869 1,584,200
JPMC NY 91,182,868 97,305,715
Commerz Bank 1,478,988 1,366,527
Reserve Bank of India 53,180,886 28,775,184
HDFC Bank CSGL 5,297,196 787,977
HDFC Bank Limited 223,688,896 50,974,451
Kotak Mahindra Bank 13,542,368 11,752,640
Habib American Bank Limited 890,080 1,640,659
JP CHASE ACU 1,371,313,144 1,045,603,523
Standard Chartered Bank, NY, USA 7,956,182 68,940,720
Standard Chartered Bank, Singapore 140,773 7,344,621
Standard Chartered Bank, UK, GBP 2,667,866 4,432,107
3,151,497,768 4,288,576,060
(Details are given in Annexure - A)

4.2.a Consolidated Outside Bangladesh (Nostro Accounts)

AB Bank Limited 3,151,497,768 4,288,576,060
AB Investment Limited - -
AB International Finance Limited 26,029,982 4,084,192
AB Securities Limited - -
Cashlink Bangladesh Limited (CBL) - -
3,177,527,750 4,292,660,252
Less: Inter company transactions 10,321,811 383,904
3,167,205,939 4,292,276,348

4.3 Account-wise/grouping of balance with other banks and financial institutions

Current deposits 3,196,682,320 4,303,519,157

Savings deposits 12,456,744 87,698
Short-Notice Deposits 74,654,385 65,183,489
Fixed deposits 1,080,000,000 880,000,000
4,363,793,449 5,248,790,344

4.4 Maturity grouping of balance with other banks

Repayable – on demand 3,274,315,029 4,303,519,157

– up to 3 months 1,089,478,421 945,271,187
– over 3 months but below 1 year - -
– over 1 year but below 5 years - -
– over 5 years - -
4,363,793,449 5,248,790,344

AB Bank | Annual Report 2020 | 147

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka
5. Money at call and on short notice

In Bangladesh (Note 5.1) 1,120,000,000 3,640,000,000

Outside Bangladesh (Note 5.2) 1,379,682,377 1,136,493,241
2,499,682,377 4,776,493,241

5.1 In Bangladesh

With banking companies

Local Currency:

Bank Asia Limited - 1,500,000,000

Midland Bank Limited - 290,000,000
Modhumoti Bank Limited 250,000,000 550,000,000
Rupali Bank Limited - 100,000,000
National Bank Limited 300,000,000 700,000,000
The City Bank Limited - 500,000,000
Jamuna Bank Limited 570,000,000 -
1,120,000,000 3,640,000,000

Foreign Currency: - -

With non-banking financial institutions - -

1,120,000,000 3,640,000,000

At short notice - -

On calls and placements

Bank Asia Limited - 1,500,000,000

Midland Bank Limited - 290,000,000
Modhumoti Bank Limited 250,000,000 550,000,000
Rupali Bank Limited - 100,000,000
National Bank Limited 300,000,000 700,000,000
The City Bank Limited - 500,000,000
Jamuna Bank Limited 570,000,000 -
1,120,000,000 3,640,000,000

5.2 Outside Bangladesh

AB International Finance Limited 964,604,550 849,000,000

Commerz Bank,AG - 2,334,750
Kotak Mahindra Bank - -
HDFC Bank Limited 415,077,827 285,158,491
1,379,682,377 1,136,493,241

5(a) Consolidated money at call and on short notice

AB Bank Limited 2,499,682,377 4,776,493,241

AB Investment Limited - -
AB International Finance Limited - -
AB Securities Limited - -
Cashlink Bangladesh Limited (CBL) - -
2,499,682,377 4,776,493,241
Less: Inter-group transaction (964,604,550) (849,000,000)
1,535,077,827 3,927,493,241

148 | AB Bank | Annual Report 2020

AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka
6. Investments 63,437,394,797 61,578,564,387

Nature wise (Bangladesh operation)

Held for Trading 16,991,303,125 18,436,886,147

Held to Maturity 36,434,249,577 32,553,153,570
Others 9,545,830,795 10,066,205,208
62,971,383,497 61,056,244,925

Nature wise (Mumbai branch)

Held for Trading/Available for Sale 175,650,675 284,497,280

Held to Maturity 290,360,625 237,822,182
Others - -
466,011,300 522,319,462
Claim wise

Government securities (Note 6.1) 53,824,738,002 51,271,643,217

Other investments (Note 6.2) 9,612,656,795 10,306,921,170
63,437,394,797 61,578,564,387
6 (a) Consolidated investments

AB Bank Limited 63,437,394,797 61,578,564,387

AB International Finance Limited - -
AB Investment Limited 551,741,963 736,423,365
AB Securities Limited 103,575,886 101,411,055
Cashlink Bangladesh Limited (CBL) - -
64,092,712,647 62,416,398,807

6.1 Government securities

T.Bill-Local-RE.REPO 2,773,230,075 4,594,340,150

T.Bill 3,832,710,742 7,805,539,669
Treasury bonds 46,819,611,886 38,590,159,898
Bangladesh Bank Islami Investment bonds 397,800,000 280,000,000
Prize bonds 1,385,300 1,603,500
53,824,738,002 51,271,643,217

6.1.1 Maturity wise Treasury Bonds

(a) 30 Days Bangladesh Bank Bill - -

(b) Treasury Bill

(i) 91 Days Treasury Bill 1,249,621,250 3,953,566,779
(ii) 182 Days Treasury Bill 749,876,250 2,005,595,561
(iii) 364 Days Treasury Bill 1,833,213,240 1,846,377,329
Total Treasury Bill 3,832,710,740 7,805,539,669

Treasury Bond
(i) 02 Years Treasury Bond 4,040,822,394 301,639,593
(ii) 05 Years Treasury Bond 10,012,437,402 9,156,974,865
(iii) 10 Years Treasury Bond 18,808,231,975 17,177,320,369
(iv) 15 Years Treasury Bond 7,478,868,393 6,463,769,873
(v) 20 Years Treasury Bond 6,479,251,719 5,490,455,198
Total Treasury Bond 46,819,611,886 38,590,159,898

AB Bank | Annual Report 2020 | 149

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka
6.1(a) Consolidated Government securities

AB Bank Limited 53,824,738,002 51,271,643,217

AB Investment Limited - -
AB International Finance Limited - -
AB Securities Limited - -
Cashlink Bangladesh Limited (CBL) - -
53,824,738,002 51,271,643,217

6.2 Other investments

Shares (Note 6.2.1) 3,508,722,377 4,144,754,812

Bond (Note 6.2.2) 4,000,000,000 4,000,000,000
Pinnacle Global Fund Pte Limited (Note 6.2.3) 1,637,923,118 1,639,846,896
9,146,645,495 9,784,601,708

Investments -ABBL, Mumbai branch

Treasury bills 466,011,300 522,319,462

466,011,300 522,319,462
Total other investments 9,612,656,795 10,306,921,170

6.2 (a) Consolidated other investments

AB Bank Limited 9,612,656,795 10,306,921,170

AB Investment Limited 551,741,963 736,423,365
AB International Finance Limited - -
AB Securities Limited 103,575,886 101,411,055
Cashlink Bangladesh Limited (CBL) - -
10,267,974,644 11,144,755,589

6.2.1 Investments in shares

Quoted (Publicly traded) 2,978,945,276 3,705,139,231

Unquoted 529,777,101 439,615,580
3,508,722,377 4,144,754,812
Details are given in Annexure-B

6.2.2 Investment in subordinated bonds

United Commercial Bank Ltd. 2,750,000,000 2,750,000,000

National Bank Ltd. 1,250,000,000 1,250,000,000
4,000,000,000 4,000,000,000

6.2.3 Pinnacle Global Fund Pte Limited 1,637,923,118 1,639,846,896

Investment in Pinnacle Global Fund Pte Limited has been reduced due to Foreign Currency Rate fluctuation.

6.3 Maturity grouping of Investment

Repayable – on demand - -
– upto 3 months 8,381,784,389 11,743,358,670
– over 3 months but below 1 year 9,264,322,735 6,523,081,683
– over 1 year but below 5 years 25,607,579,032 22,516,592,280
– over 5 years 20,183,708,641 20,795,531,753
63,437,394,797 61,578,564,387

150 | AB Bank | Annual Report 2020

AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020

6.4 Disclosure of uniform accounting procedures for REPO transactions under DOS circular no 06 dated July 15, 2010 is given below:

a. (i) Disclosure regarding outstanding Repo as on 31 December 2020:

Agreement 1st leg cash

Counter party name Reversal date
date consideration
NIL

(ii) Disclosure regarding outstanding Reverse Repo as on 31 December 2020:

Amount
Agreement
Counter party name Reversal date (1st leg cash
date
consideration)
SBAC Bank Ltd. 30-Dec-20 06-Jan-21 309,498,470
SBAC Bank Ltd. 30-Dec-20 06-Jan-21 382,059,732
Pubali Bank Ltd. 30-Dec-20 04-Jan-21 985,185,000
Pubali Bank Ltd. 30-Dec-20 04-Jan-21 504,872,235
Pubali Bank Ltd. 30-Dec-20 04-Jan-21 592,338,600

b. Disclosure regarding overall transaction of Repo and Reverse repo:

Minimum Maximum Daily average

outstanding outstanding outstanding
Particulars
during the during the year/ during the
year/period period year/period
Securities sold under repo:
i) with Bangladesh Bank - 22,847,423,000 7,266,943,560
ii) with other banks & FIS - 22,780,512,000 4,907,247,352
Securities purchased under reverse repo:
i) from Bangladesh Bank - - -
ii) from other banks & FIS - 4,380,368,504 345,901,234

31.12.2020 31.12.2019
Taka Taka

7. Loans, advances and lease/investments 274,829,861,346 256,512,476,640

7.1 Maturity grouping

Repayable – on demand 4,744,672,744 3,759,884,860
– upto 3 months 94,150,468,018 80,155,045,832
– over 3 months but below 1 year 128,215,097,684 129,654,604,804
– over 1 year but below 5 years 31,719,521,979 31,986,069,463
– over 5 years 16,000,100,920 10,956,871,681
274,829,861,346 256,512,476,640
7.2 Broad category-wise breakup excluding bills purchased and discounted

In Bangladesh
Loans 255,617,832,404 235,031,177,819
Overdrafts 18,606,517,253 20,715,446,412
Cash credits - -
274,224,349,658 255,746,624,231

Outside Bangladesh: ABBL, Mumbai branch

Loans 705,896 660,680

Overdrafts - -
Cash credits 33,165,826 30,996,046
33,871,722 31,656,725
274,258,221,380 255,778,280,956

AB Bank | Annual Report 2020 | 151

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka

7.3 Product wise loans and advances

Overdraft 18,600,377,953 20,715,446,412

Cash Credit 33,165,826 30,996,046
Time loan 45,728,905,658 40,434,384,083
Term loan 186,322,303,029 172,292,406,439
Forced loan 12,956,187,214 11,003,893,368
Bills under LC 36,160,169 48,935,376
Trust Receipt 6,222,152,680 6,755,526,597
Packing credit 95,704,310 183,774,936
Loan against accepted bills 46,492,698 215,471,226
Loan-EDF 1,548,410,272 1,410,264,178
Consumer Loan 1,361,563,536 1,286,598,412
Staff loan 1,306,798,037 1,400,583,882
Bills purchased & discounted 571,639,966 734,195,684
274,829,861,346 256,512,476,640

7.4 Net loans, advances and lease/investments

Gross loans and advances 274,829,861,346 256,512,476,640

Less:
Interest suspense 16,114,355,797 18,134,825,637
Provision for loans and advances 20,224,381,003 15,279,405,791
36,338,736,801 33,414,231,427
238,491,124,546 223,098,245,212

7.5 Significant concentration

Advances to industries 162,625,517,198 152,298,688,498

Advances to customer groups 102,971,788,159 95,158,135,431
Advances to allied concerns of Directors 9,231,828,714 9,054,439,814
Advances to Chief Executive 727,276 1,212,896
274,829,861,346 256,512,476,640

7.6 Advances to customers for more than 10% of Bank’s total capital

Total capital of the Bank 36,965,972,064 33,547,104,748

Number of clients 25 28
Amount of outstanding advances 132,359,600,000 121,991,900,000
Amount of classified advances 13,431,139,259 13,000,288,414
Measures taken for recovery*

*Rescheduling/amicable settlement/legal action is under process for recovery/reduction of classified loans.

7.7 Industry-wise loans, advances and lease/investments

Agriculture 4,861,801,894 3,819,666,523

Large and medium scale industry 84,212,134,265 70,152,695,242
Working capital 57,010,075,866 54,853,641,156
Export 1,540,950,961 3,756,901,699
Commercial lending 51,867,690,218 52,742,624,554
Small and cottage industry 4,492,946,279 2,967,096,717
Others 70,844,261,863 68,219,850,750
274,829,861,346 256,512,476,640

152 | AB Bank | Annual Report 2020

AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka
7.8 Geographical location-wise (division) distribution

In Bangladesh

Urban branches

Dhaka 180,226,670,090 168,071,608,239

Chattagram 54,086,938,844 50,440,051,697
Khulna 13,687,644,566 12,764,736,077
Sylhet 2,176,330,866 2,029,588,728
Barishal 412,351,525 384,548,150
Rajshahi 8,789,106,635 8,196,488,885
Rangpur 8,146,725,396 7,597,421,095
Mymensingh 4,902,308,681 4,571,763,694
272,428,076,604 254,056,206,564

Rural branches

Dhaka 1,053,670,312 1,008,673,360

Chattagram 650,319,802 622,547,919
Khulna - -
Sylhet 109,735,922 105,049,653
Barishal - -
Rajshahi 19,942 19,091
Rangpur 591,198 565,951
Mymensingh 47,852,010 45,808,492
1,862,189,187 1,782,664,465
Outside Bangladesh

ABBL, Mumbai branch 539,595,555 673,605,611

274,829,861,346 256,512,476,640

7.9 Classification of loans, advances and lease/investments

In Bangladesh
Unclassified
Standard 211,499,306,154 193,311,858,904
Special Mention Account 16,636,366,950 15,636,520,911
228,135,673,104 208,948,379,815

Classified
Sub-Standard 2,345,665,401 2,219,729,829
Doubtful 3,096,787,235 3,254,684,217
Bad/Loss 40,712,140,051 41,416,077,168
46,154,592,688 46,890,491,214
274,290,265,791 255,838,871,028
Outside Bangladesh-Mumbai Branch
Unclassified Loan 539,595,555 673,605,611
Classified Loan - -
539,595,555 673,605,611
274,829,861,346 256,512,476,640

Classification of Loans and advances have been made as per Bangladesh Bank Letter no. DBI-1/101/2021-1026 dated April 20, 2021.

AB Bank | Annual Report 2020 | 153

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka
7.10 Particulars of loans, advances and lease/investments

(i) Loans considered good in respect of which the Bank is fully secured 237,668,028,697 221,827,066,935
(ii) Loans considered good against which the Bank holds no security other than the - -
debtors’ personal guarantee
(iii) Loans considered good and secured by the personal undertaking of one or 37,161,832,649 34,685,409,705
more parties in addition to the personal guarantee of the debtors
(iv) Loans adversely classified but provision not maintained there against - -
274,829,861,346 256,512,476,640

(v) Loans due by directors or officers of the Bank or any of them either separately 1,306,798,037 1,400,583,882
or jointly with any other persons

(vi) Loans due from companies or firms in which the directors of the Bank are - -
interested as directors, partners or managing agents or, in case of private
companies, as members

(vii) Maximum total amount of advances, including temporary advances made at any 1,408,719,698 1,595,718,150
time during the year to directors or managers or officers of the Bank or any of
them either separately or jointly with any other persons [note 7.10 (a)]
(viii) Maximum total amount of advances, including temporary advances granted - -
during the year to the companies or firms in which the directors of the Bank are
interested as directors, partners or managing agents or, in the case of private
companies, as members

(ix) Due from other banking companies - -

(x) Amount of classified loans on which interest has not been charged: - -

(a) Increase/(decrease) of provision (specific) 1,984,888,448 1,146,653,215

(b) Amount of loan written off - 1,474,965,854
(c) Amount realised against loan 172,931,675 109,176,042
previously written off
(d) Provision kept against loans classified as bad /loss on the date of preparing 7,440,688,448 5,455,756,706
the balance sheet
(e) Interest creditable to interest suspense account 103,308,393 1,250,180,046

(xi) Written off loan:

Opening written off loan 16,960,853,604 15,485,887,750

Add: Written off during the year - 1,474,965,854
Cumulative Written off loans 16,960,853,604 16,960,853,604
Less: Adjustments/ recoveries/ Settlement up to the year 3,698,852,518 3,209,310,777
Closing Balance of Written off loan 13,262,001,086 13,751,542,827
The amount of written off loans for which lawsuits have been filed for its recovery 13,262,551,152 13,663,089,179

7.10 (a) The amount represents loans Tk.1,408,719,698 due by the employees of the Bank.

7.11 Securities wise loans, advances and lease/investments

Nature of security

Collateral of movable/immovable assets 233,413,751,391 215,739,231,713

Cash collateral 12,584,902,761 9,704,567,415
Banks and financial institutions guarantee - -
Personal guarantee 12,665,038,466 11,065,552,891
Corporate guarantee 6,847,773,600 6,909,180,542
Other securities 9,318,395,128 13,093,944,081
274,829,861,346 256,512,476,640

154 | AB Bank | Annual Report 2020

AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020

7.12 Large Loan Restructuring

Bank has restructured some loans and advances by complying with the Bangladesh Bank, BRPD Circular No. 04, dated January 29,
2015. Restructured loan details of the Bank has given below:

Name of the Client Loan Type Expiry Date Amount in BDT

Abdul Monem Sugar Term Loan 22 Dec 2021 376,096,028
Beximco Ltd. Term Loan 29 Mar 2028 1,144,333,442
Beximco Ltd. Term Loan 29 Jun 2022 144,803,757
BEL Construction SDN BHD Ltd. Term Loan 31 Dec 2027 4,562,363,112
BEL Construction SDN BHD Ltd. Term Loan 30 Dec 2021 592,597,459
R & R Aviation Limited Term Loan 23 Dec 2027 110,794,495
International Knitwear & Apparels Ltd. Term Loan 29 Jun 2028 863,115,103
Beximco Ltd. Term Loan 29 Jun 2022 645,794,716
New Dacca Industries Ltd. Term Loan 29 Jun 2022 3,275,062,087
New Dacca Industries Ltd. Term Loan 29 Jun 2028 894,652,570
R & R Holdings Term Loan 23 Dec 2027 3,301,443,852
15,911,056,620

31.12.2020 31.12.2019
Taka Taka

7(a) Consolidated loans, advances and lease/investments excl. Bills purchased

AB Bank Limited 274,258,221,380 255,778,280,956

AB Investment Limited 6,957,399,993 6,752,714,392
AB International Finance Limited - -
AB Securities Limited 919,006,263 930,528,911
Cashlink Bangladesh Limited (CBL) - -
282,134,627,636 263,461,524,259
Less: Inter company transaction 923,446,984 911,545,194
281,211,180,652 262,549,979,066

8 Bills purchased and discounted

In Bangladesh 65,916,133 92,246,798

Outside Bangladesh - ABBL, Mumbai Branch 505,723,833 641,948,886
571,639,966 734,195,684

8 (a) Consolidated Bills purchased and discounted

AB Bank Limited 571,639,966 734,195,684

AB Investment Limited - -
AB International Finance Limited 1,118,086,071 1,100,826,659
AB Securities Limited - -
Cashlink Bangladesh Limited (CBL) - -
1,689,726,038 1,835,022,342

8.1 Maturity grouping of Bills Purchased and discounted

Repayable – within 1 month 118,013,770 169,204,134

– over 1 month but within 3 months 179,342,439 234,126,640
– over 3 months but within 6 months 274,283,756 122,851,863
– over 6 months - 208,013,047
571,639,966 734,195,684

AB Bank | Annual Report 2020 | 155

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka
9. Fixed assets including premises, furniture and fixtures

Cost:

Land and Building 2,962,553,953 2,968,097,272

Furniture and fixtures 252,394,773 250,083,131
Office appliances 65,411,271 64,178,283
Electrical appliances 1,933,469,202 1,901,779,739
Motor vehicles 838,058,314 781,076,227
Intangible Assets 783,812,337 758,525,505
Right of Use Assets 1,329,421,828 1,329,421,828
8,165,121,677 8,053,161,986
Less: Accumulated depreciation and amortization 3,676,130,287 3,181,951,744
4,488,991,390 4,871,210,242
A schedule of fixed assets is given in Annexure-C

9(a) Consolidated Fixed assets including premises, furniture and fixtures

Cost:
AB Bank Limited 8,165,121,677 8,053,161,986
AB Investments Limited 688,571,092 688,571,092
AB International Finance Limited 4,731,583 4,718,520
AB Securities Limited 56,999,872 37,778,532
Cashlink Bangladesh Limited (CBL) 81,471,369 81,471,369
8,996,895,593 8,865,701,499

Accumulated depreciation:
AB Bank Limited 3,676,130,287 3,181,951,744
AB Investments Limited 159,634,894 141,044,753
AB International Finance Limited 4,601,076 4,403,501
AB Securities Limited 42,572,830 30,061,320
Cashlink Bangladesh Limited (CBL) 81,471,369 81,471,369
3,964,410,457 3,438,932,687
5,032,485,136 5,426,768,812

10. Other Assets:

Income generating-Equity Investment

In Bangladesh:

AB Investment Limited 5,811,431,750 5,811,431,750

(99.99% owned subsidiary company of ABBL)

AB Securities Limited 199,898,000 199,898,000

(99.91% owned subsidiary company of ABBL)

Cashlink Bangladesh Limited (CBL) 212,581,228 212,581,228

(90% owned subsidiary company of ABBL)
6,223,910,978 6,223,910,978

Outside Bangladesh:

AB International Finance Ltd., Hong Kong 5,203,944 5,203,944

(wholly owned subsidiary company of ABBL)
5,203,944 5,203,944
6,229,114,922 6,229,114,922

156 | AB Bank | Annual Report 2020

AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka

Non-income generating

Arab Bangladesh Bank Foundation 19,920,000 19,920,000

(99.60% owned subsidiary company of ABBL)

Deferred tax assets (Note 10.1) 3,270,784,720 2,559,125,266

Accounts receivable 1,586,836,210 1,358,719,057
Preliminary, formation, organisational, renovation,
development, prepaid expenses and others 757,841,435 699,855,925
Exchange for clearing 1,580,837,111 26,837,111
Interest accrued on investment but not collected,
commission and brokerage receivable on shares
and debentures, and other income receivables 1,221,859,948 1,250,896,297
Security deposits 73,046,316 75,798,791
Advance rent and advertisement (Note 10.2) 103,540,859 113,443,319
Stationery, stamps, printing materials, etc. 33,323,414 31,978,415
Inter-branch adjustment - 14,147

8,647,990,013 6,136,588,329
14,877,104,936 12,365,703,251

10(a) Consolidated Other assets

AB Bank Limited 14,877,104,936 12,365,703,251

AB Investment Limited 237,079,608 300,379,486
AB International Finance Limited 47,698,127 37,219,501
AB Securities Limited 98,164,731 11,989,506
Cashlink Bangladesh Limited (CBL) 31,571,199 32,515,580
15,291,618,600 12,747,807,325
Less: Inter-group transaction 6,405,107,481 6,357,907,426
8,886,511,119 6,389,899,899

10.1 Deferred tax assets

a) Deferred tax assets for specific provisions of loans and advances

Opening Deferred Tax Assets 2,622,704,984 1,995,567,400

Add: Deferred Tax Income during the year 736,387,500 796,087,500

Less: Write-Off adjustment - 118,861,316

Less. Adjustment during the year - 50,088,601
Closing deferred tax assets 3,359,092,484 2,622,704,984

b) Deferred tax liabilities against property, plant & equipment

Balance at 01 January 63,579,718 103,787,730

Add/(less): Provision made during the year 24,645,723 (40,257,496)
Add/(Less): Adjustment for Rate Fluctuation during the year 82,324 49,483
Closing deferred tax liabilities 88,307,764 63,579,718

Net Deferred Tax Assets (a-b) 3,270,784,720 2,559,125,266

Net Deferred Tax Income during the year 711,741,777 836,344,996

Deferred tax liabilities against Property, Plant & Equipment

Accounting base of Property, Plant & Equipment 3,556,621,763 3,700,011,239
Tax base of Property, Plant & Equipment 3,314,479,078 3,523,048,120
Difference 242,142,685 176,963,119

AB Bank | Annual Report 2020 | 157

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka
(Deductible)/Taxable Temporary Difference 242,142,685 176,963,119
Effective Tax Rate 37.50% 37.50%
Deferred Tax (Assets)/Liabilities 90,803,507 66,361,170
Deferred Tax (Assets)/Liabilities of Mumbai Branch (2,495,745) (2,781,455)
Closing Deferred Tax (Assets)/Liabilities 88,307,764 63,579,715

10.1.2 Consolidated deferred tax liabilities

AB Bank Limited 88,307,764 63,579,718

AB Investment Limited - 11,437,840
88,307,764 75,017,557

10.1.3 Consolidated deferred tax assets

AB Bank Limited 3,359,092,484 2,622,704,984

AB Securities Limited 1,979,667 2,265,570
AB Investment Limited 39,432,812 -
3,400,504,963 2,624,970,554
10.2 Advance rent and advertisement
Advance rent BDT 17,56,92,139.02 as on 31 December 2020 is included with Right of Use (ROU) assets as per IFRS 16 Leases.

11. Non-Banking Assets 334,171,836 342,984,836

The Bank has obtained absolute ownership of eleven mortgaged properties according to the verdict of the Honorable Court under
section 33 (7) of Artha Rin Adalat Ain, 2003. These have been recorded as non-banking assets in accordance with Bank Companies
Act, 1991 (amendment up to 2018) and BRPD circular no. 14 of 2003.
12. Borrowings from other banks, financial institutions and agents
In Bangladesh (Note 12.1) 19,107,865,842 14,820,039,741
Outside Bangladesh - -
19,107,865,842 14,820,039,741

12.1 In Bangladesh:

12.1.1 Bangladesh Bank

Export Development Fund 1,537,686,974 1,401,605,286
Islamic Investment Bond 816,485,540 1,816,519,380
Refinance against IPFF 246,135,320 284,034,590
Refinance against Women Entr., Small Enterprise, ETP, Covid 19 & Others 1,893,766,663 145,537,446
4,494,074,497 3,647,696,701

12.1.2 Call & Term Borrowing from

NCC Bank Ltd. 500,000,000 924,500,000
NRB Commercial Bank Limited - 500,000,000
Agrani Bank Limited 9,496,008,000 2,900,000,000
Sonali Bank Limited 848,004,000 3,000,000,000
Simanto Bank Limited 400,000,000 -
Uttara Bank Limited 1,924,002,000 500,000,000
Bank Asia Limited - 1,500,000,000
Midland Bank Ltd - 300,000,000
South Bangla Bank Ltd - 500,000,000
Rupali Bank Limited 924,002,000 500,000,000
National Bank Limited 296,801,400 254,700,000
South East Bank Limited 169,600,800 169,800,000
Accrued interest 55,373,145 123,343,040
14,613,791,345 11,172,343,040
Total in Bangladesh 19,107,865,842 14,820,039,741

158 | AB Bank | Annual Report 2020

AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka
12.2 Analysis by security

Secured (assets pledge as security for liabilities) - -

Unsecured 19,107,865,842 14,820,039,741
19,107,865,842 14,820,039,741

12.3 Repayment pattern

Repayable on demand - 1,000,000,000

Repayable on maturity (Note 12.3.1) 19,107,865,842 13,820,039,741
19,107,865,842 14,820,039,741

12.3.1 Repayable on maturity

Bangladesh Bank :

Export Development Fund 1,537,686,974 1,401,605,286

Islamic Investment Bond 816,485,540 1,816,519,380
Refinance against IPFF 246,135,320 284,034,590
Refinance against Women Entr., Small Ent., ETP & Others 1,893,766,663 145,537,446
4,494,074,497 3,647,696,701

Term borrowings:
Agrani Bank Limited 9,496,008,000 2,900,000,000
NCC Bank Limited 500,000,000 924,500,000
Uttara Bank Limited 1,924,002,000 500,000,000
Bank Asia Limited - 1,500,000,000
Rupali Bank Limited 924,002,000 500,000,000
Shimanto Bank Limited 400,000,000 -
Sonali Bank Limited 848,004,000 2,000,000,000
Uttara Bank Limited - -
NRB Com. Bank Limited - 500,000,000
Midland Bank Ltd - 300,000,000
South Bangla Agriculture & Com. Bank Limited - 500,000,000
National Bank Limited 296,801,400 254,700,000
Krishi Bank Limited - -
Southeast Bank Limited 169,600,800 169,800,000
Janata Bank Limited - -
Accrued interest 55,373,145 123,343,040
14,613,791,345 10,172,343,040
19,107,865,842 13,820,039,741

12(a) Consolidated Borrowings from other banks, financial institutions and agents

AB Bank Limited 19,107,865,842 14,820,039,741

AB Investment Limited 755,898,828 737,184,319
AB International Finance Limited 962,746,929 845,905,526
AB Securities Limited 167,548,561 174,502,576
Cashlink Bangladesh Limited (CBL) - -
20,994,060,160 16,577,632,162
Less: Intercompany transactions 1,886,193,913 1,757,450,720
19,107,866,247 14,820,181,442

13. AB Bank Subordinated Bond

AB Bank Subordinated Bond-I 500,000,000 1,000,000,000

AB Bank Subordinated Bond-II 1,600,000,000 2,400,000,000
AB Bank Subordinated Bond-III 4,000,000,000 4,000,000,000
AB Bank Subordinated Bond-IV 3,250,000,000 -
9,350,000,000 7,400,000,000

AB Bank | Annual Report 2020 | 159

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka
Bank has issued 7 years Sub-Ordinated bonds in four phases, namely- AB Bank Subordinated Bond-I for BDT 250 crore in August
2014, AB Bank Subordinated Bond-II for BDT 400 crore in September 2015, AB Bank Subordinated Bond-III for BDT 400 crore in
May 2018 and AB Bank Subordinated Bond-IV for BDT 325 crore in December 2020 under Private Placement of Debt Securities
Rules, 2012. These bonds are non-convertible, unsecured in nature and approved by the Central Bank for inclusion in Tier-II
capital of the Bank.

Jamuna Bank Limited 2,300,000,000 2,300,000,000

Sonali Bank Limited 2,000,000,000 800,000,000
National Credit & Commerce Bank Limited 1,700,000,000 1,700,000,000
Janata Bank Limited 1,200,000,000 300,000,000
Agrani Bank Limited 1,050,000,000 500,000,000
Rupali Bank Limited 400,000,000 600,000,000
BRAC 200,000,000 400,000,000
BRAC Bank Limited 140,000,000 220,000,000
NRB Commercial Bank Limited 140,000,000 220,000,000
Uttara Bank Limited 120,000,000 180,000,000
Midland Bank Limited 40,000,000 80,000,000
National Life Insurance Co. Limited 40,000,000 60,000,000
Mutual Trust Bank Limited 16,000,000 32,000,000
Grameen Capital Management Limited 4,000,000 8,000,000
9,350,000,000 7,400,000,000

14. Deposit and other accounts

Inter-bank deposits 5,191,520,116 2,363,492,605

Other deposits 285,527,822,321 277,094,100,693
290,719,342,438 279,457,593,298

14(a) Consolidated Deposit and other accounts

AB Bank Limited 290,719,342,438 279,457,593,298

AB Investment Limited - -
AB International Finance Limited - -
AB Securities Limited - -
Cashlink Bangladesh Limited (CBL) - -
290,719,342,438 279,457,593,298
Less: Inter-group transaction 172,181,996 62,851,282
290,547,160,441 279,394,742,017

14.1 Maturity analysis of inter-bank deposits

Repayable – on demand 1,726,356,465 1,437,087,689

– within 1 month 2,601,623,560 812,627,277
– over 1 month but within 3 months 336,309,536 82,535,972
– over 3 months but within 1 year 527,230,556 31,241,667
– over 1 period but within 5 years - -
– over 5 periods but within 10 years - -
– over 10 years - -
5,191,520,116 2,363,492,605

14.2 Maturity analysis of other deposits

Repayable – on demand 3,382,104,377 2,292,090,161

– within 1 month 28,219,742,148 27,284,686,711
– over 1 month but within 3 months 72,380,237,274 68,451,857,539
– over 3 months but within 1 year 128,651,601,082 124,699,894,407
– over 1 year but within 5 years 46,613,421,773 45,545,001,949
– over 5 years 6,280,715,668 8,820,569,927
285,527,822,321 277,094,100,692

160 | AB Bank | Annual Report 2020

AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka
14.3 Demand and time deposits

a) Demand Deposits 38,235,326,520 31,464,088,959

Current accounts and other accounts 28,639,222,340 24,205,740,688
Savings Deposits (9%) 3,172,175,205 2,689,973,149
Bills Payable 6,423,928,975 4,568,375,122

b) Time Deposits 252,484,015,917 247,993,504,339

Savings Deposits (91%) 32,074,215,959 27,198,617,391
Short Notice Deposits 47,144,703,134 50,930,113,957
Fixed Deposits 121,537,588,967 122,908,353,612
Other Deposits 51,727,507,857 46,956,419,379
Total Demand and Time Deposits 290,719,342,438 279,457,593,298

14.4 Sector-wise break up of deposits and other accounts

Government 1,890,797,992 1,931,164,623

Deposit money Banks 5,191,520,116 2,363,492,605
Autonomous & Semi-Autonomous Bodies 5,305,444,172 4,675,303,846
Public Non-Financial Organisation 64,957,043,101 69,231,731,617
Other Public 2,666,271,479 2,992,553,242
Foreign Currency 13,690,452,844 11,910,287,442
Private 197,017,812,733 186,353,059,922
290,719,342,438 279,457,593,298

15. Other liabilities

Accumulated provision against loans and advances (Note 15.1) 20,224,381,003 15,279,405,791
Inter-branch adjustment 145,930 -
Provision for current tax (net of advance tax) (Note 15.2) 1,649,440,346 2,330,977,161
Interest suspense account (Note 15.3) 16,114,355,797 18,134,825,637
Provision against other assets (Note 15.4) 348,873,106 336,573,038
Accounts payable - Bangladesh Bank 69,049,890 186,368,159
Accrued expenses 133,009,666 170,706,883
Lease Liabilities (Note 15.5) 688,375,584 842,847,290
Provision for off balance sheet items (Note 15.6) 270,000,000 710,000,000
Provision against investments (Note 15.7) 1,689,603,000 2,209,603,000
Start-up Fund * 64,669,774 -
Others ** 845,599,643 849,248,793
42,097,503,740 41,050,555,751
* Start-up Fund has been maintained as per Bangladesh Bank SMESPD Circular no. 04 dated 29 March 2021.
** Others includes provision for audit fee, excise duty, income tax and VAT deducted at source, unclaimed dividend, accounts
payable for safe keeping, earnest and security money etc.

15.1 Accumulated provision against loans and advances

The movement in specific provision for bad and doubtful debts

Balance at 01 January 6,993,879,956 5,078,767,423
Fully provided debts written off during the period (-) - (316,963,509)
Recovery of amounts previously written off (+) - 109,176,042
Specific provision made during the period (+) 1,963,700,000 2,122,900,000

1,963,700,000 1,915,112,534
Balance at 31 December 8,957,579,956 6,993,879,956
Provision made by ABBL, Mumbai Branch - -
Total provision on classified loans and advances 8,957,579,956 6,993,879,956

AB Bank | Annual Report 2020 | 161

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka
On unclassified loans

Balance at 01 January 8,282,733,658 5,557,133,658

Transferred from Investment provisions (+) 20,000,000 100,000,000
General provision made during the year (+) 2,961,992,000 2,625,600,000
2,981,992,000 2,725,600,000
Balance at 31 December 11,264,725,658 8,282,733,658
Provision made by ABBL, Mumbai Branch 2,075,389 2,792,177
Total provision on un-classified loans and advances 11,266,801,047 8,285,525,835
Total provision on loans and advances 20,224,381,003 15,279,405,790

31.12.2020
Provision for Required Maintained Excess

Un-classified loans and advances 11,257,075,389 11,266,801,047 9,725,658

Classified loans and advances 8,950,000,000 8,957,579,956 7,579,956
20,207,075,389 20,224,381,003 17,305,614

Provision against loans and advances has been maintained as per Bangladesh Bank letter no. DBI-1/101/2021-1026 dated 20
April 2021. According to letter, there is a provision shortfall of Tk. 4,946.33 crore against loans and advances which requires to
be kept in next 9 years equally from 2021-2029.

15.1.1 Special General Provision-COVID-19 206,561,420 -

Special General Provision-COVID-19 has been kept as per Bangladesh Bank, BRPD circular no. 56 dated 10 December 2020.
This amount is included with the total provision on un-classified loans and advances under note-15.1.

15.1.2 Details of provision for loans and advances 31.12.2020

Required Maintained
General Provision 11,257,075,389 11,266,801,047
Standard 10,862,299,965 10,872,025,623
Special Mention Account 394,775,424 394,775,424

Specific Provision 8,950,000,000 8,957,579,956

Substandard 272,748,255 272,748,255
Doubtful 1,244,143,254 1,244,143,254
Bad/Loss 7,433,108,491 7,440,688,448

Excess provision maintained at 31 December 2020 17,305,614

31.12.2020 31.12.2019
Taka Taka
15.2 Provision for current tax (net of advance tax)

Current Tax (note 15.2.1) 5,604,721,360 4,034,349,742

Advance Income Tax (note 15.2.2) 3,955,281,014 1,703,372,580
Provision for current tax (net of advance tax) 1,649,440,346 2,330,977,161

15.2.1 Provision for current tax

Opening Balance 3,895,988,647 14,835,831,960

Add: Provision made during the year 1,665,743,353 1,895,469,161
Less: Adjustment during the year - 12,666,362,557
Less: Deferred Tax Adjustment during the year - 50,088,601
Less: Write-off adjustment - 118,861,316
Closing Balance 5,561,731,999 3,895,988,647
Provision held by ABBL, Mumbai Branch 42,989,360 138,361,095
5,604,721,360 4,034,349,742

162 | AB Bank | Annual Report 2020

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020

Corporate income tax assessment of the Bank is completed up to the income year ended 31 December 2018 (Assessment Year
2019-20). Corporate income tax return for the year 2019 submitted under section 82BB corresponding to Assessment Years
2020-21. Tax assessments for income years 1995, 1996, 1997, 2007, 2009, 2010, 2011 and 2012 were completed but these were
referred to the Hon’ble High Court on the application made by the Bank for some disputed points.

31.12.2020 31.12.2019
Taka Taka

15.2.1a Reconciliation of Provision for Current Tax made during the year (Bangladesh Operation)
Income tax @ 37.50% on estimated taxable Business Profit 1,638,240,554 2,149,145,001
Income tax @ 20.00% on Dividend Income 27,502,800 47,152,282
Income tax @ 10% on Capital Gain on Sale of Shares - 4,788,129
Estimated Total Provision Required 1,665,743,353 2,201,085,412
Effective Tax Rate on Profit before Provision 25.84% 35.20%

15.2.2 Advance corporate income tax

In Bangladesh:

Opening Balance 1,584,282,901 13,330,000,239

Paid during the year 2,282,669,951 920,645,219
Less: Transfer/Adjustment during the year - 12,666,362,557
Closing balance (Bangladesh operations) 3,866,952,852 1,584,282,901
Advance tax of ABBL, Mumbai Branch 88,328,162 119,089,679
3,955,281,014 1,703,372,580

15.3 Interest suspense account

Balance at 01 January 18,134,825,637 19,704,000,511

Add. Transferred during the the year 103,308,393 1,250,180,046
Less: Recovery/adjustment during the year (2,004,941,382) (2,473,928,682)
Less: Waiver during the year (118,836,850) (294,613,000)
Less: Written off during the year - (50,813,239)
Balance at 31 December 16,114,355,797 18,134,825,637

15.4 Provision against other assets

Provision for
Prepaid legal expenses 136,030,000 121,030,000
Protested bills 73,355,678 76,055,610
Others 139,487,428 139,487,428
348,873,106 336,573,038

Provision against other assets was made as per BRPD Circular # 14 dated 25 June 2001 issued by Bangladesh Bank.

15.4.1 Calculation of Provision against other assets

Outstanding Provisions Provisions

Particulars Base for Provision Rate
amount Requirement Maintained
Prepaid legal expenses 135,994,832 135,994,832 50% 67,997,416 136,030,000
Protested bills 72,370,749 72,370,749 100% 72,370,749 73,355,678
Others 101,417,560 101,417,560 100% 101,417,560 139,487,428
Required provision for other assets 241,785,725 348,873,106

Total provision requirement 241,785,725

Total provision maintained 348,873,106
Excess provision maintained at 31 December 2020 107,087,380

AB Bank | Annual Report 2020 | 163

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka
15.5 Leasehold Liabilities

Opening balance of present value of lease liability 842,847,290 979,237,360

Finance Cost @ 8% 67,427,783 49,896,645
Rental payment during the year 221,899,489 186,286,715
Closing balance of lease liability 688,375,584 842,847,290

Bank recognises lease liabilities measured at the present value of lease payments to be made over the leased term using
incremental borrowing rate @ 8% at the date of initial application of “IFRS 16 Leases”. Lease liability is measured by increasing the
carrying amount to reflect interest on lease liability, reducing the carrying amount to reflect the lease payments, and remeasuring
the carrying amount to reflect any reassessment of lease modification.

15.6 Provision for off balance sheet items

Opening balance 710,000,000 810,000,000

Less: Transferred to general reserve (440,000,000) (100,000,000)
270,000,000 710,000,000

15.6.1 Particulars of required provision for Off-Balance Sheet Items

Base for Provision Rate (%) 31 Dec 2020 31 Dec 2019

Acceptances and endorsements 7,844,189,334 1% 78,441,893 97,347,035
Letters of guarantee 12,830,765,335 1% 128,307,653 140,566,747
Irrevocable letters of credit 6,094,462,753 1% 60,944,628 61,955,698
Bills for collection - 1% - -
Others 2,562,682 1% 25,627 2,114,958
Total Off Balance Sheet Items & required provision 26,771,980,105 267,719,801 301,984,438
Total provision maintained 270,000,000 710,000,000
Excess provision at 31 December 2020 2,280,199 408,015,562

Provision is not required against Off Balance Sheet items of Mumbai Branch BDT 29,902,686,092.22 as per Reserve Bank of India
(RBI) guidelines.

15.7 Provision against investments

Provision against quoted shares:

Opening balance 1,830,353,000 1,650,053,000
Add/(less): Provision transferred during the year (660,000,000) 180,300,000
1,170,353,000 1,830,353,000

Total provision maintained for Investment 1,170,353,000 1,830,353,000

Total provision requirement for Investment 1,169,528,839 1,826,516,990
Excess provision 824,161 3,836,010

Provision for Pinnacle Global Fund Pte Limited:

Opening balance 379,250,000 239,250,000
Add: Provision made during the year 140,000,000 140,000,000
519,250,000 379,250,000

Provision for Pinnacle Global Fund Pte Limited of BDT 111.86 crore has been deferred as per Bangladesh Bank letter no. DBI-
1/101/2021-1026 dated April 20, 2021 for 9 years from 2021-2029.

Total Provision maintained against investment:

Provision against quoted shares 1,170,353,000 1,830,353,000
Provision for Pinnacle Global Fund Pte Limited 519,250,000 379,250,000
1,689,603,000 2,209,603,000

164 | AB Bank | Annual Report 2020

AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka

15(a) Consolidated Other liabilities

AB Bank Limited 42,097,503,740 41,050,555,751
AB Investment Limited 911,761,681 852,726,243
AB International Finance Limited 54,610,986 86,150,229
AB Securities Limited 910,021,973 448,712,800
Cashlink Bangladesh Limited (CBL) 28,750 28,750
43,973,927,130 42,438,173,774
Less: Inter-group transaction 98,198,677 17,190,130
43,875,728,453 42,420,983,644

16. Share Capital 7,960,368,300 7,581,303,150

16.1 Authorised Capital

1,500,000,000 ordinary shares of BDT 10 each 15,000,000,000 15,000,000,000

16.2 Issued, Subscribed and Paid-up Capital

10,000,000 ordinary shares of BDT 10 each issued for cash 100,000,000 100,000,000
5,000,000 ordinary shares of BDT 10 each issued for rights 50,000,000 50,000,000
781,036,830 ordinary shares of BDT 10 each issued as bonus shares 7,810,368,300 7,431,303,150
7,960,368,300 7,581,303,150
16.3 Percentage of shareholding

As at 31 December 2020 As at 31 December 2019

No. of shares % No. of shares %

Sponsors and public 791,473,869 99.43 753,784,637 99.43

Government 4,562,961 0.57 4,345,678 0.57
796,036,830 100.00 758,130,315 100.00

16.4 Classification of shareholders by holding

No. of holders % of total holding

Holding
31.12.2020 31.12.2019 31.12.2020 31.12.2019
Upto 500 28,708 31,442 48.16 49.69
501 to 5,000 22,734 23,976 38.14 37.89
5,001 to 10,000 3,626 3,663 6.08 5.79
10,001 to 20,000 2,214 2,092 3.71 3.31
20,001 to 30,000 742 701 1.24 1.11
30,001 to 40,000 379 326 0.64 0.52
40,001 to 50,000 230 231 0.39 0.37
50,001 to 100,000 472 404 0.79 0.64
100,001 to 1,000,000 443 385 0.74 0.61
Over 1,000,000 61 56 0.10 0.09
59,609 63,276 100 100

AB Bank | Annual Report 2020 | 165

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka
16.5 Names of the Directors and their shareholding as at 31 December 2020

No. of Shareholding including

Name of the Director Status nominating institution/individual
31.12.2020 31.12.2019
Mr. Muhammad A. (Rumee) Ali
Chairman 79,480,564 75,696,901
Nominated by Pacific Traders Ltd.
Mr. Feroz Ahmed Director 16,516,704 15,730,196
Mr. Shajir Ahmed
Director 21,804,184 17,907,293
Nominated by Mr. Salim Ahmed
Mr. Khairul Alam Choudhury
Director 77,865,692 74,157,802
Nominated by Pacific Industries Limited
Mr. Kaiser A. Chowdhury* Independent Director - -
Mr. Shafiqul Alam Independent Director - -
Mr. Tarique Afzal President & Managing Director - -
* Mr. Kaiser A. Chowdhury has resigned from Board of Directors of the Bank on its 702nd Board Meeting held on 18 January 2021.

16.6 Capital to Risk Weighted Assets Ratio (CRAR) - As per BASEL III

Consolidated - Capital Adequacy Ratio

In terms of section 13(2) of the Bank Company Act, 1991 (Amendment up to 2018) and Bangladesh Bank BRPD Circular no. 18
dated 21 December 2014, required capital of the Bank on Consolidated basis at the close of business on December 31, 2020 is
Taka 43,077,137,076 as against available Total Common Equity Tier-I Capital of Taka 20,673,912,073 and Total Tier-2 Capital
available of Taka 18,377,040,442 that is, a total of Taka 39,050,952,515 thereby showing a deficit capital of Taka 4,026,184,561
at that date. Details are shown below:

Tier I Capital (Going-Concern Capital)

Common Equity Tier-I Capital

Fully Paid-up Capital/Capital Deposited with BB 7,960,368,300 7,581,303,150
Statutory Reserve 7,144,204,404 6,872,052,329
Non-repayable share premium account - -
General Reserve 2,384,878,054 1,304,649,867
Retained earnings 6,705,777,925 6,834,970,432
Minority interest in Subsidiaries 11,935,655 11,688,017
Non-Cumulative irredeemable Preference shares - -
Dividend Equalization Account - -
24,207,164,338 22,604,663,795

Regulatory adjustment:
Goodwill and all other Intangible Assets 125,974,104 138,569,481
Shortfall in provisions required against Non Performing Loans (NPLs) - -
Shortfall in provisions required against investment in shares - -
Remaining deficit on account of revaluation of investments in securities after netting - -
off from any other surplus on the securities.
Deferred Tax Assets (DTA) 3,359,092,484 2,622,704,984
Defined benefit pension fund assets - -
Gain on sale related to securitization transactions - -
Investment in own CET-1 Instruments/Shares - -
Reciprocal crossholdings in the CET-1 capital of Banking, Financial and Insurance Entities 38,225,677 19,862,175
Any investment exceeding the approved limit under section 26(2) of Bank Company Act, 1991. - -
Investments in subsidiaries which are not consolidated- 50% of Investment 9,960,000 9,960,000
Other if any - -
3,533,252,265 2,791,096,640
Total Common Equity Tier-I Capital 20,673,912,073 19,813,567,155

Additional Tier-I Capital - -

166 | AB Bank | Annual Report 2020

AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka
Tier-2 Capital (Gone concern Capital)

General Provision/General loan-loss reserve 12,623,546,062 9,754,729,283

All other preference shares - -
Subordinated debt/Instruments issued by the banks that meet the qualifying criteria 7,990,000,000 5,840,000,000
for Tier 2 capital (as per Annex 4 of Basel III Guidelines)
Minority Interest - -
HO borrowings in foreign currency received that meet the criteria of Tier 2 debt capital - -
Revaluation Reserves as on 31 December, 2014 (50% of Fixed Assets and Securities - -
& 10% of Equities)
Other (if any item approved by Bangladesh Bank) - -
Sub-Total 20,613,546,062 15,594,729,283

Regulatory Adjustments:
Revaluation Reserves for Fixed Assets, Securities & Equity Securities - -
Investment in own T-2 Instruments/Shares - -
Reciprocal crossholdings in the T-2 capital of Banking, Financial and Insurance Entities - -
Any investment exceeding the approved limit under section 26(2) of Bank Company - -
Act, 1991. (50% of Investment)
Investments in subsidiaries which are not consolidated- 50% of Investment 9,960,000 9,960,000
Other (if any ) - -
Total Tier-2 Capital Available 20,603,586,062 15,584,769,283
Maximum limit of Tier-2 Capital (Tier 2 Capital can be maximum up to 4.0% of the 18,377,040,442 17,612,279,844
total RWA or 88.89% of CET1, whichever is higher)
Excess amount over maximum limit of T 2 - -
Total admissible Tier 2 Capital 18,377,040,442 15,584,769,283

Total Eligible Capital 39,050,952,515 35,398,336,438

Total assets including off-Balance Sheet items 447,761,348,022 415,912,260,208

Total risk-weighted assets (RWA) 344,617,096,606 334,211,410,226

B. Total required capital (12.50% of Total RWA) 43,077,137,076 41,776,426,278

Capital Surplus / (Shortfall) [A-B] (4,026,184,561) (6,378,089,840)

Capital to Risk Weighted Assets Ratio (CRAR) 11.33% 10.59%

Solo - Capital to Risk Weighted Assets Ratio (CRAR)

In terms of section 13(2) of the Bank Company Act, 1991 (Amendment up to 2018) and Bangladesh Bank BRPD Circular no.
18 dated 21 December 2014, required capital of the Bank on Solo basis at the close of business on 31 December 2020 is BDT
42,632,085,911 as against available Common Equity Tier-I capital of BDT 19,570,105,386 and Total Tier-2 Capital Available capital
of BDT 17,395,866,678 that is, a total of BDT 36,965,972,064 thereby showing a defecit capital of BDT 5,666,113,847 at that
date. Details are shown below:

Tier I Capital (going-concern capital)

Common Equity Tier-I Capital

Fully Paid-up Capital/Capital Deposited with BB 7,960,368,300 7,581,303,150
Statutory Reserve 7,144,204,404 6,872,052,329
Non-repayable share premium account - -
General Reserve 2,302,199,200 1,222,199,200
Retained earnings 5,686,625,747 5,817,160,874
Minority interest in Subsidiaries - -
Non-Cumulative irredeemable Preferences shares - -
Dividend Equalization Account - -
23,093,397,651 21,492,715,553

AB Bank | Annual Report 2020 | 167

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka
Regulatory adjustment :

Goodwill and all other Intangible Assets 125,974,104 138,569,481

Shortfall in provisions required against Non Performing Loans (NPLs) - -
Shortfall in provisions required against investment in shares - -
Remaining deficit on account of revaluation of investments in securities after netting - -
off from any other surplus on the securities.
Deferred Tax Assets (DTA) 3,359,092,484 2,622,704,984
Defined benefit pension fund assets - -
Gain on sale related to securitization transactions - -
Investment in own CET-1 Instruments/Shares - -
Reciprocal crossholdings in the CET-1 capital of Banking, Financial and Insurance Entities 38,225,677 19,862,175
Any investment exceeding the approved limit under section 26(2) of Bank Company Act, 1991. - -
Investments in subsidiaries which are not consolidated- 50% of Investment - -
Other if any - -
3,523,292,265 2,781,136,640
Total Common Equity Tier-I Capital 19,570,105,386 18,711,578,914

Additional Tier-I Capital - -

Tier-2 Capital (Gone concern Capital)

General Provision/General loan-loss reserve 11,536,801,047 8,995,525,835

All other preference shares - -
Subordinated debt/Instruments issued by the banks that meet the qualifying criteria 7,990,000,000 5,840,000,000
for Tier 2 capital (as per Annex 4 of Basel III Guidelines)
Non-controlling interest - -
HO borrowings in foreign currency received that meet the criteria of Tier 2 debt capital
Revaluation Reserves as on 31 December, 2014(50% of Fixed Assets and Securities - -
& 10% of Equities)
Other (if any item approved by Bangladesh Bank)
Sub-Total 19,526,801,047 14,835,525,835

Regulatory adjustments:
Revaluation Reserves for Fixed Assets, Securities & Equity Securities - -
Investment in own T-2 Instruments/Shares - -
Reciprocal crossholdings in the T-2 capital of Banking, Financial and Insurance Entities - -
Any investment exceeding the approved limit under section 26(2) of Bank Company - -
Act, 1991. (50% of Investment)
Investments in subsidiaries which are not consolidated- 50% of Investment - -
Other (if any ) - -
Total Tier-2 Capital Available 19,526,801,047 14,835,525,835
Maximum limit of Tier-2 Capital (Tier 2 Capital can be maximum up to 4.0% of the 17,395,866,678 16,632,722,496
total RWA or 88.89% of CET1, whichever is higher)
Excess amount over maximum limit of T 2 - -
Total admissible Tier 2 Capital 17,395,866,678 14,835,525,835

Total Eligible Capital 36,965,972,064 33,547,104,748

Total assets including off-Balance Sheet items 444,953,096,983 413,404,972,542

Total risk-weighted assets (RWA) 341,056,687,284 331,375,189,363
B. Total required capital (12.50% of Total RWA) 42,632,085,911 41,421,898,670

Capital Surplus / (Shortfall) [A-B] (5,666,113,847) (7,874,793,922)

Capital to Risk Weighted Assets Ratio (CRAR) 10.84% 10.12%

168 | AB Bank | Annual Report 2020

AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka
17. Statutory reserve

In Bangladesh

Opening balance 6,547,756,164 6,324,553,560

Add: Addition during the year 272,411,703 223,202,604
6,820,167,867 6,547,756,164
Outside Bangladesh - ABBL, Mumbai Branch

Opening balance 324,296,165 298,809,180

Add: Addition during the period 9,338,685 27,870,923
Add/(Less): Adjustment for Foreign Exchange Rate Fluctuation (9,598,312) (2,383,939)
324,036,537 324,296,165
7,144,204,404 6,872,052,329

18. Other reserve

General reserve (Note 18.1) 2,302,199,200 1,222,199,200

Assets revaluation reserve (Note 18.2) 1,294,532,425 1,296,690,729
Investment revaluation reserve (Note 18.3) 99,008,157 51,075,241
3,695,739,782 2,569,965,170

18.1 General reserve 2,302,199,200 1,222,199,200

Opening balance 1,222,199,200 1,222,199,200

Addition/(adjustment) during the year 1,080,000,000 -
2,302,199,200 1,222,199,200

18.2 Assets revaluation reserve

Opening balance 1,296,690,729 1,298,209,633
Less: Transferred to retained earnings (2,158,304) (1,518,904)
1,294,532,425 1,296,690,729

18.3 Investment revaluation reserve (T.Bills & T.Bonds)

In Bangladesh
Revaluation Reserve for:

Held to Maturity (HTM) Note (18.3.1) 5,601,811 38,000,145

Held for Trading (HFT) Note (18.3.2) 88,953,608 13,075,096
94,555,419 51,075,241
Outside Bangladesh
ABBL, Mumbai Branch 4,452,738 -
99,008,157 51,075,241

18.3.1 Revaluation Reserve for Held to Maturity (HTM)

Opening balance 38,000,145 4,789,464
Add: Addition during the year 1,281,174 33,210,681
39,281,319 38,000,145
Less: Adjustment during the year 33,679,508 -
5,601,811 38,000,145

18.3.2 Revaluation Reserve for Held for Trading (HFT)

Opening balance 13,075,096 15,464,707
Add: Addition during the year 1,067,382,545 109,482,697
1,080,457,641 124,947,404
Less: Adjustment during the year 991,504,033 111,872,308
88,953,608 13,075,096

AB Bank | Annual Report 2020 | 169

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
31.12.2020 31.12.2019
Taka Taka
18(a) Consolidated Other reserve

AB Bank Limited 3,695,739,782 2,569,965,170

AB Investment Limited - -
AB International Finance Limited 85,209,560 84,161,257
AB Securities Limited 85,910,523 85,910,523
Cashlink Bangladesh Limited (CBL) - -
3,866,859,865 2,740,036,949

19. Retained earnings

Opening balance 5,817,160,874 5,905,152,980

Add: Post-tax profit for the year 391,416,392 167,741,264
Less: Transfer to statutory reserve (281,750,388) (251,073,528)
Bonus Share Issued (379,065,150) -
5,547,761,728 5,821,820,716

Add/(Less): Transferred from Assets Revaluation Reserve 2,158,304 1,518,905

Add/(Less): Adjustments during the year 147,709,892 -
Add/(Less): Foreign Exchange Translation gain/(loss) (11,004,177) (6,178,746)
5,686,625,747 5,817,160,874

19(a) Consolidated Retained earnings

AB Bank Limited 5,686,625,747 5,817,160,874

AB Investment Limited 286,624,182 290,465,910
AB International Finance Limited 81,002,494 117,098,561
AB Securities Limited 156,316,938 152,001,606
Cashlink Bangladesh Limited (CBL) (165,295,612) (167,733,872)
6,045,273,749 6,208,993,079
Add/(Less): Adjustment made during the year 644,113,334 609,338,872
Non-controlling Interest 16,390,843 16,638,480
6,705,777,925 6,834,970,432

19(b) Non-controlling interest

AB Investment Limited 10,204 10,210

AB Securities Limited 455,012 451,195
Cashlink Bangladesh Limited 11,470,439 11,226,613
11,935,655 11,688,017

20. Contingent liabilities 59,191,446,731 47,836,302,228

20.1 Letters of guarantee

Money for which the Bank is contingently liable in respect of guarantees issued favoring:

Directors - -
Government - -
Banks and other financial institutions 99,230,755 101,954,959
Others 12,738,061,119 13,956,416,188
12,837,291,873 14,058,371,146

170 | AB Bank | Annual Report 2020

AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
2020 2019
Taka Taka
21. Profit and loss account

Income:
Interest, discount and similar income 28,616,217,021 30,924,132,550
Dividend income 137,581,947 235,761,409
Fee, commission and brokerage 929,742,512 1,209,120,076
Gains less losses arising from investment securities (55,232,043) 47,881,292
Gains less losses arising from dealing in foreign currencies 329,269,526 543,471,508
Other operating income 266,019,048 69,510,357
Gains less losses arising from dealing securities 2,057,356,633 (1,299,085,690)
32,280,954,644 31,730,791,501
Expenses:
Interest, fee and commission 20,134,646,639 18,846,782,511
Administrative expenses 3,730,865,808 3,721,383,466
Other operating expenses 1,435,273,997 1,095,487,977
Depreciation and amortization on banking assets 513,190,806 510,240,666
Loss on loans and advances - 1,107,189,105
25,813,977,249 25,281,083,725
6,466,977,395 6,449,707,777
22. Interest income/profit on investments

Interest on loans and advances: 24,035,731,283 26,334,224,445

Loans and advances 45,320,107 94,133,659
Bills purchased and discounted 24,081,051,390 26,428,358,104

Interest on: 160,283,848 219,436,245

Calls and placements 6,343,029 13,629,765
Balance with foreign banks 9,547,178 36,547,386
Reverse Repo 34,227,893 17,526,027
Balance with Bangladesh Bank 210,401,949 287,139,423
24,291,453,339 26,715,497,527

22(a). Consolidated Interest income/profit on investments

AB Bank Limited 24,291,453,339 26,715,497,527

AB International Finance Limited 44,383,765 51,909,386
AB Investment Limited 59,982,280 138,400,793
AB Securities Limited 35,743,715 40,048,959
Cashlink Bangladesh Limited (CBL) 4,031,392 13,555,475
24,435,594,491 26,959,412,140
Less: Intercompany transactions 8,681,210 5,257,759
24,426,913,281 26,954,154,381

23. Interest/profit paid on deposits, borrowings, etc.

Interest on deposits:
Fixed deposits 9,186,586,325 10,314,702,844
Savings deposits 1,083,050,201 970,183,410
Special notice deposits 2,423,408,692 2,463,058,998
Other deposits 4,775,278,315 2,905,596,924
17,468,323,533 16,653,542,176
Interest on borrowings:
Local banks, financial institutions including BB 1,965,685,706 1,341,067,732
Subordinated Bond 700,637,399 852,172,602
20,134,646,639 18,846,782,511

AB Bank | Annual Report 2020 | 171

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
2020 2019
Taka Taka

23(a). Consolidated Interest/profit paid on deposits, borrowings, etc.

AB Bank Limited 20,134,646,639 18,846,782,511

AB Investment Limited - 15,609
AB International Finance Limited 6,323,019 5,737,888
AB Securities Limited 39,314,968 23,092,701
Cashlink Bangladesh Limited (CBL) - -
20,180,284,626 18,875,628,709
Less: Intercompany transactions 8,681,210 7,144,210
20,171,603,415 18,868,484,499

24. Investment income

Capital gain on sale of shares (55,232,043) 47,881,292

Interest on treasury bills 113,159,438 144,931,290
Dividend on shares 137,581,947 235,761,409
Interest on treasury bonds 3,826,008,638 3,667,650,750
Gain/(Loss) on treasury bills and treasury bonds 2,057,356,633 (1,299,085,690)
Interest on other bonds & others 385,595,606 396,052,983
6,464,470,219 3,193,192,033

24(a). Consolidated Investment income

AB Bank Limited 6,464,470,219 3,193,192,033

AB Investment Limited 63,705,087 (131,590,144)
AB International Finance Limited - -
AB Securities Limited 38,553,642 (29,937,889)
Cashlink Bangladesh Limited (CBL) - -
6,566,728,948 3,031,664,000
Less: Intercompany transactions 74,867,949 109,642,410
6,491,860,999 2,922,021,590

(*) Inter-company transactions includes dividend income from AB International Finance Limited.

25. Commission, exchange and brokerage

Other fees, commission and service charges 545,014,241 683,277,518

Commission on letters of credit 301,177,301 402,917,767
Commission on letters of guarantee 83,550,969 122,924,791
Exchange gains less losses arising from dealings in foreign currencies 329,269,526 543,471,508
1,259,012,038 1,752,591,584

25(a). Consolidated Commission, exchange and brokerage

AB Bank Limited 1,259,012,038 1,752,591,584
AB Investment Limited 41,426,241 38,422,671
AB International Finance Limited 42,142,542 68,000,562
AB Securities Limited 99,649,888 38,821,911
Cashlink Bangladesh Limited (CBL) - -
1,442,230,709 1,897,836,728
Less: Intercompany transactions (2,136,438) -
1,440,094,270 1,897,836,728

26. Other income

Locker rent, insurance claim and others 36,328,741 4,701,789
Recoveries on loans previously written off 172,931,675 -
Recoveries on telex, telephone, fax, etc. 29,673,586 40,577,496
Recoveries on courier, postage, stamp, etc. 5,566,912 12,578,455
Non-operating income (*) 21,518,134 11,652,617
266,019,048 69,510,357

(*) Non-operating income includes sale of scrap items, Employee’s Provident Fund forfeiture amount, Gain on sale of properties etc.

172 | AB Bank | Annual Report 2020

AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
2020 2019
Taka Taka

26(a). Consolidated other income

AB Bank Limited 266,019,048 69,510,357

AB Investment Limited 10,100,020 11,903,569
AB International Finance Limited 57,196,991 72,732,498
AB Securities Limited 2,889,848 1,751,475
Cashlink Bangladesh Limited (CBL) - -
336,205,907 155,897,899
Less: Inter company transactions 9,116,520 7,402,971
327,089,387 148,494,928

27. Salary and allowances

Basic salary, provident fund contribution and all other allowances 2,555,271,066 2,554,284,167
Festival and incentive bonus 172,627,915 178,318,228
2,727,898,981 2,732,602,396

27.1 Chief executive’s salary and fees 12,890,968 5,885,484

27(a). Consolidated salary and allowances

AB Bank Limited 2,727,898,981 2,732,602,396

AB Investment Limited 17,230,235 15,286,399
AB International Finance Limited 30,674,196 31,257,162
AB Securities Limited 31,165,104 25,665,708
Cashlink Bangladesh Limited (CBL) 277,234 267,504
2,807,245,751 2,805,079,169

28. Rent, taxes, insurance, electricity, etc.

Rent, rates and taxes (Note 28.1) 320,038,820 293,648,499

Electricity, gas, water, etc. 93,434,082 96,014,966
Insurance 189,548,150 176,214,045
603,021,052 565,877,510

28.1 Rent, rates and taxes

Right of Use (ROU) assets has been calculated for the year 2020 as per IFRS-16 leases considering monthly rental expenses
excluding low value assets.

28(a). Consolidated Rent, taxes, insurance, electricity, etc.

AB Bank Limited 603,021,052 565,877,510

AB Investment Limited 2,181,018 2,176,232
AB International Finance Limited 9,431,493 10,050,587
AB Securities Limited 2,236,293 8,126,543
Cashlink Bangladesh Limited (CBL) - -
616,869,856 586,230,872
Less: Inter company transactions 9,116,520 5,516,520
607,753,336 580,714,352

29. Legal expenses

Legal expenses 13,232,598 11,038,914

AB Bank | Annual Report 2020 | 173

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
2020 2019
Taka Taka
29(a). Consolidated legal expenses

AB Bank Limited 13,232,598 11,038,914

AB Investment Limited 104,550 448,450
AB International Finance Limited 546,872 1,009,701
AB Securities Limited - -
Cashlink Bangladesh Limited (CBL) - -
13,884,020 12,497,065

30. Postage, stamp, telecommunication, etc.

Telex, fax, internet, wireless link, SWIFT, etc. 69,079,154 63,825,996

Telephone 5,585,305 6,224,708
Postage, stamp and shipping 12,538,863 22,702,756
87,203,322 92,753,460

30(a). Consolidated Postage, stamp, telecommunication, etc.

AB Bank Limited 87,203,322 92,753,460

AB Investment Limited 857,518 862,866
AB International Finance Limited 8,518,855 12,229,015
AB Securities Limited 1,598,469 1,488,154
Cashlink Bangladesh Limited (CBL) - -
98,178,164 107,333,496
31. Stationery, printing, advertisements, etc.

Printing and stationery 82,429,377 125,196,656

Publicity, advertisement, etc. 11,900,530 9,496,866
94,329,907 134,693,521

31(a). Consolidated Stationery, printing, advertisements, etc.

AB Bank Limited 94,329,907 134,693,521

AB Investment Limited 186,595 242,605
AB International Finance Limited 303,087 349,802
AB Securities Limited 841,633 638,538
Cashlink Bangladesh Limited (CBL) - -
95,661,222 135,924,466

32. Directors’ fees

Directors’ fees 866,800 1,273,200

Meeting expenses 243,090 802,987
1,109,890 2,076,187

Directors’ fees includes fees for attending the meeting of the Board, Executive Committee, Audit Committee, Risk Management
Committee and Shariah Council.
32(a). Consolidated Directors’ fees

AB Bank Limited 1,109,890 2,076,187

AB Investment Limited 366,680 146,342
AB International Finance Limited - -
AB Securities Limited 476,668 279,444
Cashlink Bangladesh Limited (CBL) 46,000 103,500
1,999,238 2,605,473

174 | AB Bank | Annual Report 2020

AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
2020 2019
Taka Taka
33. Auditors’ fees

Statutory 1,394,428 1,429,700

Others 944,122 5,526,463
2,338,550 6,956,164

33(a). Consolidated Auditors’ fees

AB Bank Limited 2,338,550 6,956,164

AB Investment Limited 167,500 -
AB International Finance Limited 546,872 452,901
AB Securities Limited 174,625 168,500
Cashlink Bangladesh Limited (CBL) 28,750 28,750
3,256,296 7,606,315

34. Depreciation and repairs of Bank’s assets

Depreciation :

Electrical appliances 115,679,965 120,618,360

Furniture and fixtures 9,694,695 11,055,354
Office appliances 1,823,600 2,075,238
Building 15,615,159 16,019,742
Motor vehicles 74,689,848 70,361,966
217,503,267 220,130,661

Depreciation of ROU (Right Of Use) assets 257,599,987 207,977,884

Repairs:

Motor vehicles 25,542,124 24,804,902

Electrical appliances 58,202,864 67,465,593
Office premises and others 99,102,318 70,305,608
Furniture and fixtures 1,162,288 1,874,670
Office appliances 4,830,945 5,049,058
188,840,540 169,499,830
663,943,793 597,608,375
Amortization of Intangible Assets 38,087,552 82,132,121
702,031,345 679,740,496

34(a). Consolidated Depreciation and repairs of Bank’s assets

AB Bank Limited 702,031,345 679,740,496

AB Investment Limited 18,937,439 19,035,165
AB International Finance Limited 498,034 504,821
AB Securities Limited 7,847,721 2,041,837
Cashlink Bangladesh Limited (CBL) - -
729,314,539 701,322,318

35. Other expenses

Contractual service 491,530,952 473,242,793

Petrol, oil and lubricant 48,187,703 55,452,530
Software expenses 211,014,944 192,999,375
Entertainment 28,366,072 35,695,817
Travelling 9,601,923 14,346,126
Subscription, membership and sponsorship 40,063,417 10,234,925
Training, seminar and workshop 6,780,480 9,506,987
Local conveyance 8,337,014 9,233,680

AB Bank | Annual Report 2020 | 175

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
2020 2019
Taka Taka

Professional charges 65,423,479 37,972,254

Books, newspapers and periodicals 1,169,721 1,444,370
Finance charge under lease liability 67,427,783 49,896,645
Donation 172,734,854 37,646,544
Bank Charges 10,507,695 12,819,190
Sundry expenses (*) 274,127,959 154,996,740
1,435,273,997 1,095,487,977

(*) Sundry expenses includes business promotion, rebate to foreign correspondents and dress of support staff etc.

35(a). Consolidated other expenses

AB Bank Limited 1,435,273,997 1,095,487,977

AB Investment Limited 35,399,586 9,847,339
AB International Finance Limited 437,568 1,989,081
AB Securities Limited 22,917,406 9,390,101
Cashlink Bangladesh Limited (CBL) 67,171 53,698
1,494,095,729 1,116,768,196
Less: Inter company transactions 2,136,438 -
1,491,959,291 1,116,768,196

36. Provision against loans and advances

On un-classified loans 2,961,357,853 2,624,411,840

On classified loans 1,963,700,000 2,122,900,000
4,925,057,853 4,747,311,840

36(a). Consolidated provision against loans and advances

AB Bank Limited 4,925,057,853 4,747,311,840

AB Investment Limited 135,000,000 -
AB International Finance Limited - -
AB Securities Limited 40,000,000 -
Cashlink Bangladesh Limited (CBL) - -
5,100,057,853 4,747,311,840

37. Provisions for investments

Provision for quoted shares in Bangladesh operations - 180,300,000
Provision for Pinnacle Global Fund Pte Limited 140,000,000 140,000,000
Provision for Amana Bank Plc - 54,687,754
Total provision for investments 140,000,000 374,987,754

37(a). Consolidated provisions for diminution in value of investments

AB Bank Limited 140,000,000 374,987,754
AB Investment Limited - -
AB International Finance Limited - -
AB Securities Limited - (31,991,511)
Cashlink Bangladesh Limited (CBL) - -
140,000,000 342,996,243
38. Other provision
Provision for off balance sheet items - -
Provision for Other assets 15,172,949 18,227,696
Start-up Fund 64,669,774 -
79,842,723 18,227,696

Provision for other assets included prepaid legal expenses,protested bills and others has been made as per Bangladesh Bank
BRPD Circular # 14 dated 25 June 2001.

176 | AB Bank | Annual Report 2020

AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
2020 2019
Taka Taka

38(a). Consolidated other provisions

AB Bank Limited 79,842,723 18,227,696

AB Investment Limited - -
AB International Finance Limited - -
AB Securities Limited - -
Cashlink Bangladesh Limited (CBL) - -
79,842,723 18,227,696

39. Appropriations

Retained earnings - brought forward 5,817,160,875 5,905,152,980

Add: Post-tax profit for the year 391,416,392 167,741,264
6,208,577,266 6,072,894,244
Less: Dividend-
Bonus shares issued 379,065,150 -
5,829,512,116 6,072,894,244

Transferred to
Statutory reserve 281,750,388 251,073,528
General reserve - -
Proposed dividend - -
281,750,388 251,073,528
Retained earnings 5,547,761,728 5,821,820,716

Add:Transferred from Assets Revaluation Reserve 2,158,304 1,518,905

Less: Adjustment during the year 147,709,892 -
Add: Foreign Exchange translation gain/(Loss) (11,004,177) (6,178,746)
5,686,625,747 5,817,160,875

40. Earnings Per Share (EPS)

Profit after taxation 391,416,392 167,741,264

Number of ordinary shares outstanding 796,036,830 796,036,830
Earnings Per Share 0.49 0.21

40.(a) Consolidated Earnings Per Share

Net Profit attributable to the shareholders of parent company 394,080,618 121,976,397

Number of ordinary shares outstanding 796,036,830 796,036,830
Earnings Per Share 0.50 0.15

Earnings Per Share (EPS) has been computed in accordance with International Accounting Standard (IAS)-33 by dividing the basic
earnings by the number of ordinary shares outstanding as of December 31, 2020. There is no convertible instruments of the Bank,
thus no dilution effect has been considered.

41. Receipts from other operating activities

Interest on treasury bills, bonds, debenture and others 6,326,888,272 2,957,430,624

Exchange earnings 321,575,586 526,667,762
Recoveries on telex, telephone, fax, etc. 29,673,586 40,577,496
Recoveries on courier, postage, stamp, etc. 5,566,912 12,578,455
Non-operating income 21,518,134 11,652,617
Others 36,328,741 4,701,789
6,741,551,232 3,553,608,744

AB Bank | Annual Report 2020 | 177

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
2020 2019
Taka Taka
42. Payments for other operating activities

Rent, taxes, insurance, electricity, etc. 927,825,057 822,296,467

Postage, stamps, telecommunication, etc. 87,203,322 92,753,460
Repairs of Bank’s assets 188,840,540 169,499,830
Legal expenses 13,232,598 11,038,914
Auditor’s fees 2,338,550 6,956,164
Directors’ fees 1,109,890 2,076,187
Other Expenses 1,330,080,871 1,045,591,332
2,550,630,827 2,150,212,354

43. Increased/(Decrease) in other assets

Investment in subsidiaries 6,229,114,922 6,229,114,922

Advance rent and advertisement 279,232,998 393,495,546
Stationery, stamps, printing materials, etc. 33,323,414 31,978,415
Security deposits 73,046,316 75,798,791
Commission and brokerage receivable on shares
and debentures, and other income receivables 1,221,859,948 1,250,896,297
Accounts receivable 1,586,836,210 1,358,719,057
Preliminary, formation, organizational, renovation,
development and prepaid expenses 757,841,435 699,855,925
Exchange for clearing 1,580,837,111 26,837,111
Inter-branch adjustment - 14,147
Arab Bangladesh Bank Foundation 19,920,000 19,920,000
11,782,012,355 10,086,630,212
Net Decrease/(Increase) 1,695,382,143 (957,175,755)

44. Increase/(decrease) in other liabilities

Accumulated provision against loans and advances 20,224,381,003 15,279,405,791

Provision for current tax 1,649,440,346 2,330,977,161
Interest suspense account 16,114,355,797 18,134,825,637
Accounts payable - Bangladesh Bank 69,049,890 186,368,159
Provision against other assets 348,873,106 336,573,038
Accrued expenses 133,009,666 170,706,883
Provision against investments 1,689,603,000 2,209,603,000
Provision against off balance sheet items 270,000,000 710,000,000
Others 845,599,643 849,248,793
41,344,312,451 40,207,708,462
Less: Adjustment for provision and others 24,968,962,509 21,752,855,045
16,375,349,943 18,454,853,417
Net decrease (2,079,503,473) (2,964,856,134)

45 Net Operating Cash Flow Per Share (NOCFPS)

Net Operating Cash Flow (3,829,318,087) 28,702,666,413

Number of ordinary shares outstanding 796,036,830 796,036,830
Net Operating Cash Flow Per Share (NOCFPS) (4.81) 36.06

45(a) Consolidated Net Operating Cash Flow Per Share (NOCFPS)

Net Operating Cash Flow (3,671,899,568) 28,647,450,655

Number of ordinary shares outstanding 796,036,830 796,036,830
Net Operating Cash Flow Per Share (NOCFPS) (4.61) 35.99

178 | AB Bank | Annual Report 2020

AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020
2020 2019
Taka Taka
46 Net Asset Value Per Share (NAVPS)

Net Asset Value 24,486,938,234 22,840,481,523

Number of ordinary shares outstanding 796,036,830 758,130,315
Net Asset Value Per Share (NAVPS) 30.76 30.13

46(a) Consolidated Net Asset Value Per Share (NAVPS)

Net Asset Value 25,677,210,495 24,028,362,861

Number of ordinary shares outstanding 796,036,830 758,130,315
Net Asset Value Per Share (NAVPS) 32.26 31.69

47 Reconciliation of Net Profit after Taxation & Operating Profit before

changes in operating assets & liabilities

Cash flows from operating activities

Net Profit after Taxation 391,416,392 167,741,264
Provision for Tax 930,660,427 1,141,439,224
Provision for Loans, Invstment and others 5,144,900,576 5,140,527,289
Increase in interest receivable (10,541,821,749) (3,783,481,770)
(Decrease)/Increase interest Payable on Deposits (1,521,250,258) 213,261,156
Non cash items, Lease impact and others 293,579,928 412,894,396
Income tax paid (2,329,156,442) (984,829,539)
Charges on loan losses - 1,107,189,105
Effect of exchange rate changes on cash & cash equivalents (7,693,939) (16,803,746)
Operating Profit before changes in operating assets & liabilities (7,639,365,065) 3,397,937,379

48. Conversion Rates

Assets and liabilities as at December 31, 2020 denominated in foreign currencies have been converted to local currency Bangladesh
Taka (BDT) at the following exchange rates:
Currency Abbreviation Unit Equivalent to BDT
British Pound Sterling GBP 1.00 114.0650
European Currency EURO 1.00 103.5922
Indian Rupee INR 1.00 1.1530
US Dollar USD 1.00 84.8004

AB Bank | Annual Report 2020 | 179

 AB Bank Limited
Notes to the Financial Statements
For the year ended 31 December 2020

49. Highlights of the overall activities of the Bank

31 Dec 2020 31 Dec 2019

Sl no. Particulars
BDT BDT
1 Paid-up capital 7,960,368,300 7,581,303,150
2 Total capital 36,965,972,064 33,547,104,748
3 Capital surplus/(shortfall) (5,666,113,847) (7,874,793,922)
4 Total assets 385,761,650,252 365,568,670,314
5 Total deposits 290,719,342,438 279,457,593,298
6 Total loans and advances 274,829,861,346 256,512,476,640
7 Total contingent liabilities and commitments 59,191,446,731 47,836,302,228
8 Credit-deposit ratio* 85.26% 84.28%
9 Ratio of classified loans against total loans and advances 16.79% 18.28%
10 Profit after tax and provision 391,416,392 167,741,264
11 Loans classified during the year 678,221,000 13,254,526,917
12 Provision kept against classified loans 8,957,579,956 6,993,879,956
13 Provision surplus/ (deficit) 17,305,614 14,840,614
14 Cost of fund 8.35% 8.71%
15 Interest earning assets 303,275,615,385 284,417,267,558
16 Non-interest earning assets 82,486,034,868 81,151,402,756
17 Return on investments (ROI) 10.34% 6.07%
18 Return on assets (ROA) 0.10% 0.05%
19 Income from investments 6,464,470,219 3,193,192,033
20 Earnings per share 0.49 0.21
21 Net Income per share 0.49 0.21
22 Price-earnings ratio (Times) 24.61 35.71

* Credit-deposit ratio calculation has been done as per Bangladesh Bank guidelines.

Tarique Afzal Khairul Alam Choudhury Shafiqul Alam Muhammad A. (Rumee) Ali
President & Managing Director Director Independent Director Chairman

Dhaka,

27 April 2021

180 | AB Bank | Annual Report 2020

AB Bank Limited
Currency wise Balances
As at 31 December 2020 Annexure-A

As at December 31, 2020

Name of
Name of the bank Location Amounts in Conversion Equivalent
currency
foreign currency rate amounts in BDT
Commerzbank AG, Germany Germany CAD 14,629 66.008 965,642
Commerzbank AG, Germany Germany CHF 43,186 95.421 4,120,869
Commerzbank AG, Germany Germany EUR 796,299 103.592 82,490,389
The Bank of Tokyo-Mitsubishi Japan JPY 545,346 0.817 445,548
Standard Chartered, Singapur Singapur SGD 2,208 63.750 140,773
Standard Chartered, UK London GBP 23,389 114.065 2,667,866
JP Morgan Chase Bank, NY Newyork USD 9,707,493 84.800 823,199,273
Myanma Economic Bank Myanmer ACU 410 84.800 34,768
Citibank, NA, NY, USA Newyork USD 1,612,995 84.800 136,782,639
Hatton National Bank Ltd, Colombo Colombo ACU 680,562 84.800 57,711,947
Commerzbank AG, Germany Germany USD 339,629 84.800 28,800,706
MCB Bank Ltd, Karachi, Pakistan Karachi ACU 45,527 84.800 3,860,685
Mashreq Bank, NY, USA Newyork USD 1,512,625 84.800 128,271,243
Nepal Bangladesh Nepal ACU 48,348 84.800 4,099,951
Bank of Bhutan, Thimpu, Bhutan Bhutan ACU 7,350 84.800 623,285
Habib American Bank, NY, USA Newyork USD 1,147,534 84.800 97,311,321
Habib Metro Bank, Karachi Karachi ACU 62,799 84.800 5,325,350
MFT Bank, Yangon Yangon ACU 1,000 84.800 84,800
Standard Chartered, NY, USA Newyork USD 93,822 84.800 7,956,182
Sonali Bank, Kolkata,India Kolkata ACU 71,109 84.800 6,030,102
JP Morgan Chase Newyork USD 1,016,557 84.800 86,204,467
JP Chase ACU Newyork USD 16,171,069 84.800 1,371,313,144
Habib American Newyork USD 10,496 84.800 890,080
Reserve Bank of India India INR 46,124,167 1.153 53,180,886
HDFC Bank CSGL India INR 4,594,297 1.153 5,297,196
HDFC Bank Limited India INR 194,006,997 1.153 223,688,896
Kotak Mahindra Bank India INR 11,745,393 1.153 13,542,368
JPMC NY-OBU USA USD 58,707 84.800 4,978,401
COMMERZ BANK-OBU Germany EUR 14,277 103.592 1,478,988
Total 3,151,497,768

AB Bank | Annual Report 2020 | 181

 AB Bank Limited
Investment in Shares Annexure-B
As at 31 December 2020

Amount in Taka
Number of Market price per Total market
Particulars Cost per Share Total cost
shares share price

Dhaka Bank Limited 3,368,346 11.90 40,083,317 15.45 52,038,103

Mercantile Bank Limited 1,317,879 12.70 16,737,063 12.03 15,856,819
National Bank Limited 2,160,052 7.00 15,120,364 21.53 46,512,856
Southeast Bank Limited 1,371,411 12.50 17,142,638 13.50 18,507,570
Premier Bank Limited 2,052,962 11.00 22,582,582 10.96 22,493,551
First Janata Bank Mutual Fund 1,165,067 6.00 6,990,402 6.54 7,621,712
AB Bank 1st Mutual Fund 42,086,435 6.30 265,144,541 6.27 264,040,965
EBL NRB Mutual Fund 1,252,585 5.70 7,139,735 6.42 8,042,311
LR Global Bangladesh Mutual Fund One 10,369,343 6.60 68,437,664 9.64 100,000,001
Popular Life First Mutual Fund 748,479 5.40 4,041,787 5.12 3,829,325
Trust Bank 1st Mutual Fund 1,000,000 6.10 6,100,000 6.20 6,200,000
Crystal Insurance Company Limited 10,879 39.40 428,633 10.00 108,790
Pragati Insurance Limited 1,243,866 63.30 78,736,718 100.96 125,579,301
Dhaka Electric Supply Company Limited 7,023,760 34.80 244,426,848 87.73 616,189,388
Jamuna Oil Company Limited 26,521 165.50 4,389,226 158.72 4,209,507
Khulna Power Company Limited 345,865 45.30 15,667,685 88.49 30,606,883
Padma Oil Company Limited 347,094 205.10 71,188,979 299.66 104,010,918
Powergrid Company of Bangladesh Limited 3,366,500 41.80 140,719,700 81.61 274,723,472
Shahjibazar Power Co. Limited 229,417 73.30 16,816,266 103.04 23,639,315
Titas Gas T & D Co. Ltd. 186,883 30.80 5,755,996 35.48 6,630,913
United Power Gen. & Dis. Com. Limited 475,280 263.50 125,236,280 270.50 128,562,605
Active Fine Chemicals Limited 756,000 16.90 12,776,400 31.45 23,775,889
Beximco Pharmaceuticals Limited 250,000 190.50 47,625,000 177.83 44,458,234
Orion Pharma Limited 1,200,000 54.70 65,640,000 83.33 100,000,001
Square Pharmaceuticals Limited 79,818 219.50 17,520,051 174.48 13,926,524
Appollo Ispat Complex Limited 3,146,999 6.50 20,455,494 14.64 46,066,078
BBS Cables Limited 1,179,922 54.80 64,659,726 89.86 106,029,299
Bangladesh Building Systems Limited 116,054 17.50 2,030,945 25.08 2,910,878
BSRM Steels Limited 2,454,161 42.50 104,301,843 98.32 241,287,030
GPH Ispat Limited 2,895,781 30.60 88,610,899 34.16 98,916,561
IFAD Autos Limited 462,099 47.20 21,811,073 103.40 47,780,491
Olympic Industries Limited 138,542 191.10 26,475,376 222.14 30,776,387
Heidelberg Cement Bangladesh Limited 66,720 149.60 9,981,312 555.88 37,088,160
LafargeHolcim Bangladesh Limited 125,000 47.80 5,975,000 134.50 16,812,600
Union Capital Limited 2,440,006 8.40 20,496,050 61.08 149,037,209
Robi Axiata Limited 87,459 29.80 2,606,278 10.00 874,590
SAIF Powertec Limited. 360,612 18.00 6,491,016 23.03 8,305,002
Sea Pearl Beach Resort & Spa Limited 3,916 79.10 309,756 9.53 37,301
Argon Denims Limited 2,205,000 19.70 43,438,500 34.71 76,525,583
Ring Shine Textiles Limited 50,767 6.40 324,909 7.62 386,655
Shasha Denims Limited 1,935,378 21.60 41,804,165 38.52 74,546,499
Total quoted shares (a) 1,776,220,213 2,978,945,276

Shares/Bond (unquoted)

Number of Book Value/

Particulars Cost per Share
shares Cost
CDBL 5,000,000 2.00 10,000,000
CDBL (Placement) 711,804 8.00 5,694,430
IIDFCL 2,667,923 6.16 16,421,700
Bangladesh Fund 2,000,000 100.00 200,000,000
Stock Market Stablization Fund 500,000 10.00 5,000,000
Total un-quoted shares (b) 237,116,130

Strategic Investment:

Number of
Particulars Cost price Book Value
shares
Amana Bank PLC, Srilanka 187,784,490 616,735,915 292,660,971
Total Strategic Investment (c) 187,784,490 616,735,915 292,660,971
Total investment (a+b+c) 3,508,722,377

182 | AB Bank | Annual Report 2020

 AB Bank Limited
Schedule of Fixed Assets
As of 31 December 2020 Annexure-C

Amount in Taka
Land and Furniture and Office Electrical Intangible Right of Use
Particulars Motor Vehicles Total
Building Fixtures Appliances Appliances Assets Assets

Cost/ Revaluation
Balance at 01 January 2020 2,968,097,272 250,083,132 64,178,283 1,901,779,739 781,076,228 758,525,505 1,329,421,828 8,053,161,986
Addition during the year - 2,705,090 1,384,145 46,393,108 59,759,500 25,879,116 - 136,120,959
Less: Disposal/Adjustment during the year 5,543,319 300,000 14,004,721 2,574,000 - - 22,422,040
Adjustment for FEX. Rate Fluctuation - 93,449 151,158 698,923 203,414 592,282 - 1,739,226
At 31 December 2020 2,962,553,953 252,394,773 65,411,271 1,933,469,202 838,058,314 783,812,337 1,329,421,828 8,165,121,677

Accumulated Depreciation
Balance at 01 January 2020 158,812,694 160,111,385 55,757,837 1,385,607,361 593,728,559 619,956,024 207,977,884 3,181,951,744
Addition during the year 15,615,159 9,694,696 1,823,601 115,689,964 74,689,848 38,077,552 257,599,987 513,190,807
Less: Disposal/Adjustment during the year 880,121 278,330 - 13,822,273 2,573,998 - - 17,554,722
Adjustment for FEX. Rate Fluctuation - 80,835 141,651 901,327 138,383 195,342 - 1,457,538
At 31 December 2020 173,547,733 169,446,916 57,439,787 1,486,573,725 665,706,026 657,838,233 465,577,871 3,676,130,287

Net Book Value

At 31 December 2020 2,789,006,220 82,947,857 7,971,484 446,895,477 172,352,288 125,974,104 863,843,957 4,488,991,390

At 31 December 2019 2,809,284,577 89,971,747 8,420,446 516,172,377 187,347,668 138,569,481 1,121,443,944 4,871,210,242

AB Bank | Annual Report 2020 | 183

 AB Bank Limited
Detailed of Risk Weighted Assets under Basel III Annexure-D
As at 31 December 2020

Amount in BDT
31.12.2020 31.12.2019
Risk Weighted Assets (RWA) for Risk Weighted Risk Weighted
Exposure Exposure
Asset Asset
A. Credit Risk
On- Balance sheet (as shown below) 354,874,524,692 302,078,775,686 335,157,579,669 284,923,595,570
Off-Balance sheet (as shown below) 14,947,910,227 13,486,261,747 18,932,374,334 16,394,468,326
B. Market Risk - 7,268,033,562 - 6,921,248,850
C. Operational Risk - 18,223,616,289 - 23,135,876,616
Total RWA (A+B+C) 369,822,434,920 341,056,687,284 354,089,954,003 331,375,189,363

Credit Risk - On Balance Sheet

Amount in BDT
31.12.2020 31.12.2019
Sl. Exposure Type Risk Weighted Risk Weighted
Exposure Exposure
Asset Asset
a) Cash and Cash Equivalents 1,011,279,186 - 1,137,704,137 -
b) Claims on Bangladesh Government and 56,620,510,177 - 51,400,800,742 -
Bangladesh Bank
c) Claims on other Sovereigns & Central 466,011,300 233,005,650 522,319,462 261,159,731
Banks*
d) Claims on Bank for International - - - -
Settlements, International Monetary Fund
and European Central Bank
e) Claims on Multilateral Development Banks - - - -
(MDBs)
f) Claims on Public Sector Entities (other than - - - -
Government) in Bangladesh
g) Claims on Banks and Non-bank Financial
Institution (NBFI)
i) Original maturity over 3 months 433,183,756 116,785,116 228,194,361 87,985,668
ii) Maturity less than 3 months 7,449,963,040 1,489,992,608 11,223,999,161 2,244,799,832
h) Claims on Corporate (excluding equity 163,943,625,193 165,496,078,730 140,747,146,880 137,705,968,922
exposure)
i) Claims on SME 24,946,589,167 21,657,669,903 27,062,694,720 23,967,358,760
j) Claims under Credit Risk Mitigation 8,186,664,702 3,574,453,006 7,347,885,801 3,345,104,198

Fixed Risk Weight Groups:

k) Claims categorized as retail portfolio 706,795,517 530,096,638 421,492,695 316,119,521
(excluding consumer loan )
l) Consumer Loan 834,387,519 834,387,519 928,116,330 928,116,330
m) Claims fully secured by residential property 659,603,576 329,801,788 1,042,542,729 521,271,364
n) Claims fully secured by commercial real 6,486,980,000 6,486,980,000 6,604,519,403 6,604,519,403
estate
o) Past Due Claims (Risk weights are to be 53,778,531,689 77,093,210,863 55,539,438,169 80,709,149,655
assigned net of specific provision)
p) Claims fully secured against residential 54,847,992 54,847,992 34,894,000 34,894,000
property that are past due for more than
90 days and/or impaired specific provision
held there-against is less than 20% of
outstanding amount
q) Investments in venture capital 474,821,302 474,821,302 474,821,302 712,231,954
r) Claim on Capital Market Exposure 1,216,107,955 1,520,134,943 1,114,044,644 1,392,555,805
s) Unlisted equity investments and regulatory 10,011,329,750 12,514,162,188 10,011,329,750 12,514,162,188
capital instruments issued by other banks
(other than those deducted from capital)
held in banking book
t) Investments in premises, plant and 3,674,641,701 3,674,641,701 3,889,793,471 3,889,793,471
equipment and all other fixed assets
u) Claims on all fixed assets under operating - - - -
lease
v) All other assets 13,918,651,169 5,997,705,738 15,425,841,911 9,688,404,769
Total 354,874,524,692 302,078,775,686 335,157,579,669 284,923,595,570

184 | AB Bank | Annual Report 2020

Credit Risk - Off Balance Sheet
Amount in BDT
31.12.2020 31.12.2019
Sl. Exposure Type Risk Weighted Risk Weighted
Exposure Exposure
Asset Asset

1 2 3 4 5 6
a) Claims on Bangladesh Government and - - - -
Bangladesh Bank
b) Claims on other Sovereigns & Central Banks* - - - -
c) Claims on Bank for International Settlements, - - - -
International Monetary Fund and European
Central Bank
d) Claims on Multilateral Development Banks - - - -
(MDBs):
e) Claims on Public Sector Entities (other than - - - -
Government) in Bangladesh
f) Claims on Banks: - - - -
i) Maturity over 3 months - - - -
ii) Maturity less than 3 months 49,615,377 9,923,075 50,977,479 10,195,496
g) Claims on Corporate (excluding equity exposure) 11,679,169,693 10,788,265,650 15,967,160,028 13,890,590,309
h) Against retail portfolio (excluding consumer loan) 160,218,132 120,163,599 180,226,822 135,170,116
hi) Claims on SME 3,058,907,024 2,567,909,423 2,666,560,385 2,291,062,785
i) Consumer Loan - - 67,449,620 67,449,620
j) Claims fully secured by residential property - - - -
k) Claims fully secured by commercial real estate - - - -
l) Investments in venture capital - - - -
m) All other assets - - - -
Total 14,947,910,227 13,486,261,747 18,932,374,334 16,394,468,326

AB Bank | Annual Report 2020 | 185

 AB Bank Limited
Disclosures on Risk Based Capital (Basel III) Annexure D-1
As on 31 December 2020

These disclosures have been made in accordance with the Bangladesh Bank BRPD Circular no. 18 dated 21 December 2014 as to guidelines
on ‘Risk Based Capital Adequacy for Banks’ in line with Basel III.

1. Capital adequacy under Basel-III

To cope with the international best practices and to make the Bank’s capital more risk sensitive as well as more shock resilient,
‘Guidelines on Risk Based Capital Adequacy (RBCA) for Banks’ (revised regulatory capital framework in line with Basel III) have been
introduced from 01 January 2015. The guidelines were issued by Bangladesh Bank (BB) under section 13 and section 45 of the Bank
Company Act, 1991 (amendment up to 2018).

Basel III guidelines are structured on the following aspects:

a) Minimum capital requirements to be maintained by a Bank against credit, market, and operational risks.
b) Process for assessing the overall capital adequacy aligned with risk profile of a Bank as well as capital growth plan.
c) Framework of public disclosure on the position of a Bank’s risk profiles, capital adequacy, and risk management system.

2. Scope of application

Basel III guidelines apply to all scheduled banks on ‘Solo’ basis as well as on ‘Consolidated’ basis where-
- Solo Basis refers to all position of the Bank and its local and overseas branches/offices; and
- Consolidated basis refers to all position of the bank (including its local and overseas branches/offices) and its subsidiary
company(ies) engaged in financial (excluding insurance) activities like Merchant banks, Brokerage Firms, Discount Houses,
etc. (if any).
AB Bank followed the scope narrated above. Bank has Tier 1 capital (going concern) and Tier 2 capital (gone concern)
structure at the moment.

3. Capital base

Regulatory capital has been categorised into following way:

1) Tier 1 capital (going concern capital)

a) Common equity Tier 1
b) Additional Tier 1
2) Tier 2 capital (gone concern)

1. (a)   Common Equity Tier 1 Capital

For the local Banks, Common Equity Tier 1 (CET1) capital shall consist of sum of the following items:

a) Paid up capital
b) Non repayable share premium account
c) Statutory reserve
d) General reserve
e) Retained earnings
f) Dividend equalization reserve
g) Noncontrolling interest in subsidiaries
Less: Regulatory adjustments applicable on CET1

1. (b)   Additional Tier 1 Capital

For the local Banks, Additional Tier 1 (AT1) capital shall consist of the following items:

a) Instruments issued by the banks that meet the qualifying criteria for AT1
b) Noncontrolling Interest i.e. AT1 issued by consolidated subsidiaries to third parties (for consolidated reporting only);
Less: Regulatory adjustments applicable on AT1 Capital

2. Tier 2 Capital

Tier 2 capital, also called ‘gone-concern capital’, represents other elements which fall short of some of the characteristics of the core
capital but contribute to the overall strength of a bank. For the local banks, Tier 2 capital shall consist of the following items:
a) General provisions

186 | AB Bank | Annual Report 2020

 b) Subordinated debt / Instruments issued by the Banks that meet the qualifying criteria for Tier 2 capital;
c) Noncontrolling Interest i.e. Tier 2 capital issued by consolidated subsidiaries to third parties as specified
Less: Regulatory adjustments applicable on Tier 2 capital;

4. Limits (Minima and Maxima)

These instructions will be adopted in a phased manner starting from the January 2015, with full implementation of capital ratios from
the beginning of 2019. Banks will be required to maintain the following ratios on an ongoing basis:

a) Common equity Tier 1 of at least 4.5% of the total RWA.

b) Tier 1 capital will be at least 6.0% of the total RWA.
c)   Minimum CRAR of 10% of the total RWA.
d) Additional Tier 1 capital can be admitted maximum up to 1.5% of the total RWA or 33.33% of CET1, whichever is higher
e) Tier 2 capital can be admitted maximum up to 4.0% of the total RWA or 88.89% of CET1, whichever is higher
f) In addition to minimum CRAR, Capital Conservation Buffer (CCB) of 2.5% of the total RWA is being introduced which will be
maintained in the form of CET1.

Following is the phase-in arrangement for the implementation of minimum capital requirements
Phase-in arrangement of minimum capital requirements

Particulars 2015 2016 2017 2018 2019

Minimum Common Equity Tier-1 Capital Ratio 4.50% 4.50% 4.50% 4.50% 4.50%
Capital Conservation Buffer - 0.625% 1.25% 1.875% 2.50%
Minimum CET-1 plus Capital Conservation Buffer 4. 50% 5.13% 5.75% 6.38% 7.00%
Minimum T-1 Capital Ratio 5.50% 5.50% 6.00% 6.00% 6.00%
Minimum Total Capital Ratio 10.00% 10.00% 10.00% 10.00% 10.00%
Minimum Total Capital plus Capital Conservation Buffer 10.00% 10.625% 11.25% 11.875% 12.50%

5. Capital conservation buffer

Banks are required to maintain a capital conservation buffer of 2.5%, comprised of Common Equity Tier 1 capital, above the
regulatory minimum capital requirement of 10%. Banks should not distribute capital (i.e. pay dividends or bonuses in any form) in
case capital level falls within this range. However, they will be able to conduct business as normal when their capital levels fall into
the conservation range as they experience losses.

Therefore, the constraints imposed are related to the distributions only and are not related to the operations of banks. The distribution
constraints imposed on Banks when their capital levels fall into the range increase as the Banks’ capital levels approach the minimum
requirements. The table below shows the minimum capital conservation ratios a Bank must meet at various levels of the Common
Equity Tier 1 capital ratios.

Bank’s minimum capital conservation standards

Minimum capital conservation ratio (expressed
CET-1 ratio
as percentage of earnings)
4.5% - 5.125% 100%
> 5.125% - 5.75% 80%
> 5.75% - 6.375% 60%
> 6.375% - 7.0% 40%
> 7.0% 0%

6 Regulatory adjustments / deductions

In order to arrive at the eligible regulatory capital for the purpose of calculating CRAR, Banks are required to make the following
deductions from CET1/capital:

a) Shortfall in provisions against NPLs and investments

b) Goodwill and all other intangible assets
c) Deferred tax assets (DTA)
d) Defined benefit pension fund assets
e) Gain on sale related to securitisation transactions
f) Investment in own shares
g) Investments in the capital of Banking, Financial and Insurance entities
(Reciprocal crossholdings in the Capital of Banking, Financial and Insurance entities)

AB Bank | Annual Report 2020 | 187

 Transitional arrangements for capital deductions

Currently, 10% of revaluation reserves for equity instruments and 50% of revaluation reserves for fixed assets and securities are
eligible for Tier 2 capital. However, Bangladesh Bank, in the light of Basel III proposals, has harmonised deductions from capital which
will mostly be applied at the level of Tier 2. The regulatory capital adjustment will start in a phased manner from January 2015 in
the following manner:

Transitional Arrangements for Capital Deductions:

Phase-in of deductions from Tier 2 2015 2016 2017 2018 2019

RR for Fixed Assets 20% 40% 60% 80% 100%

RR for Securities 20% 40% 60% 80% 100%

RR for Equity Securities 20% 40% 60% 80% 100%

Bank complied with the conditions as embodied in this respect wherever applicable.

7. Leverage Ratio

A minimum Tier 1 leverage ratio of 3% is being prescribed both at solo and consolidated level

The banks will maintain leverage ratio on quarterly basis. The calculation at the end of each calendar quarter will be submitted to BB
showing the average of the month end leverage ratios based on the following definition of capital and total exposure.
Tier 1 Capital (after related deductions)
Leverage Ratio =
Total Exposure (after related deductions)

Transitional arrangements

The parallel run period for leverage ratio will commence from January, 2015 and run until December 31, 2016. During this period, the
leverage ratio and its components will be tracked to assess whether the design and calibration of the minimum Tier 1 leverage ratio
of 3% is appropriate over a credit cycle and for different types of business models, including its behavior relative to the risk based
requirements.

Bank level disclosure of the leverage ratio and its components will start from 01 January 2015. However, Banks should report their Tier
1 leverage ratio to the BB (Department of Off-Site Supervision) along with CRAR report from the quarter ending March, 2015. Based
on the results of the parallel run period, any final adjustments to the definition and calibration of the leverage ratio will be made by
BB in 2017, with a view to setting the leverage ratio requirements as a separate capital standard from 01 January 2018.

Bank complied with the conditions as embodied in this respect wherever applicable.

8. a) Credit Risk

Credit risk is the potential that a bank borrower or counterparty fails to meet its obligation in accordance with agreed term.

Bank followed the suggested methodology, process as contained in the guidelines.

b) Methodology

Bangladesh Bank adopted Standardised approach for calculating Risk Weighted Assets. The capital requirement for credit
risk is based on the risk assessment made by external credit assessment institutions (ECAIs) recognized by BB for capital
adequacy purposes. Banks are required to assign a risk weight to all their on balance sheet and off balance sheet exposures.
Risk weights are based on external credit rating (solicited) which was mapped with the BB rating grade or a fixed weight that
is specified by Bangladesh Bank.

c) Credit risk mitigation

AB Bank uses a number of techniques to reduce its credit risk to which the Bank is exposed. For example, exposures may be
collateralised by first priority claims, in whole as in part with cash or securities, a loan exposure may be guaranteed by a third
party. Additionally, Bank may agree to net loans owed to them against deposits from the same counterparty.
Bank uses comprehensive approach as adopted by the Central Bank. In this approach when taking collateral, Bank will need
to calculate adjusted exposure to a counterparty for capital adequacy purposes in order to take account of the effects of that
collateral. Using haircut, Bank is required to adjust both the amount of the exposure to the counterparty and the value of
any collateral received in support of that counterparty to take account of possible future fluctuations in the value of either,
occasioned by market movements. This will produce volatility adjusted amounts for both exposure and collateral.

188 | AB Bank | Annual Report 2020

9. a) Market Risk

Market risk is defined as the risk of losses in on and off-balance sheet positions arising from movements in market prices. The
market risk positions subject to this requirement are:

i) The risks pertaining to interest rate related instruments and equities in the trading book; and

ii) Foreign exchange risk and commodities risk throughout the Bank (both in the Banking and in the trading book).

b) Methodology

In Standardized Approach, the capital requirement for various market risks (interest rate risk, equity price risk, commodity
price risk, and foreign exchange risk) is determined separately. The total capital requirement in respect of market risk is the
sum of capital requirement calculated for each of these market risk sub-categories.

The methodology to calculate capital requirement under Standardized Approach for each of these market risk categories is
as follows:

a) Capital Charge for Interest Rate Risk = Capital Charge for Specific Risk + Capital Charge for General Market Risk.

b) Capital Charge for Equity Position Risk = Capital Charge for Specific Risk + Capital Charge for General Market Risk.

c) Capital Charge for Foreign Exchange Risk = Capital Charge for General Market Risk

d) Capital Charge for Commodity Position Risk = Capital Charge for General Market Risk

Bank followed the suggested methodology, process as contained in the Guidelines.

10. a) Operational risk

Operational risk is defined as the risk of losses resulting from inadequate or failed internal processes, people and systems or
from external events. This definition includes legal risk, but excludes strategic and reputation risk.

b) Measurement methodology

Banks operating in Bangladesh shall compute the capital requirements for operational risk under the Basic Indicator Approach
(BIA). Under BIA, the capital charge for operational risk is a fixed percentage, denoted by (alpha), of average positive annual
gross income of the bank over the past three years. Figures for any year in which annual gross income is negative or zero,
should be excluded from both the numerator and denominator when calculating the average.
Bank followed the suggested methodology, process as contained in the guidelines.
11. Disclosure under Pillar III

Disclosure given below as specified by RBCA guidelines dated 21 December 2014:

A) Scope of application

Qualitative disclosure

(a) The name of the top corporate entity in the AB Bank Limited
group to which this guidelines applies.
(b) An outline of differences in the basis of The consolidated financial statements of the Bank include the financial statements
consolidation for accounting and regulatory of (a) AB Bank Limited (b) AB Investment Limited (c) AB Securities Limited (d)
purposes, with a brief description of the Cash Link Bangladesh Limited and (e) AB International Finance Limited. A brief
entities within the group (a) that are description of these are given below:
fully consolidated; (b) that are given a
deduction treatment; and (c) that are
AB Bank Limited (ABBL)
neither consolidated nor deducted (e.g.
where the investment is risk-weighted). AB Bank Limited is one of the first generation private commercial banks (PCBs),
incorporated in Bangladesh on 31 December 1981 as a public limited company
under the Companies Act 1913, subsequently replaced by the Companies Act
1994, and governed by the Bank Company Act 1991 (amendment up to 2018). The
Bank went for public issue of its shares on 28 December 1983 and its shares are
listed with Dhaka Stock Exchange and Chittagong Stock Exchange respectively.
AB Bank Limited has 105 Branches including 1 Islami Banking Branch, 1 Overseas
Branch in Mumbai, India. The Bank has five (05) subsidiary companies, AB
Investment Limited (ABIL), AB Securities Limited (ABSL), CashLink Bangladesh
Limited (CBL), AB International Finance Limited (ABIFL), incorporated in Hong
Kong, and Arab Bangladesh Bank Foundation (ABBF).

AB Bank | Annual Report 2020 | 189

 AB Investment Limited
AB Investment Limited (ABIL), a Subsidiary of AB Bank Limited was incorporated
under the Companies Act, 1994 on 24 December 2009 with a view to run
and manage the operations of Merchant Banking Wing of AB Bank Limited
independently. AB Investment Limited started its operation on 10 March 2010. AB
Investment Limited has achieved an unparallel reputation as a leading Merchant
Banker through providing portfolio management services by maintaining a high
level of professional expertise and integrity in client relationship. ABIL’s Registered
Office is located at WW Tower (Level 7), 68 Motijheel C.A., Dhaka. ABIL has two
branch offices at Agrabad, Chittagong and Chowhatta, Sylhet.
AB Securities Limited
Brokerage business of Arab Bangladesh Bank Foundation has been transferred to
the newly formed AB Securities Limited (ABSL) vide Bangladesh Bank approval
letter BRPD(R-1)717/2009-493 dated 08 November 2009. Main objective of the
company is to act as a stock broker to buy and sell Securities, Bond, Debenture,
etc. on behalf of clients. ABSL also manages its own portfolio under Stock Dealer
License. ABSL is a member of both Dhaka Stock Exchange Ltd. and Chittagong
Stock Exchange Ltd. ABSL started it’s operation independently on 02 August
2010, before that it was operated under the ABBF License.
Cashlink Bangladesh Limited
Cashlink Bangladesh Limited (CBL) was incorporated on 24 September 2008 in
Bangladesh under the Companies Act 1994 as a private company limited. AB Bank
Limited presently holds 90% shares in CBL. The principal activity of the company
is to install and operate a switched Automated Teller Machines (ATM) and Point
of Sales (POS) network on behalf of a number of local and foreign banks enabling
these member bank customers who are active cardholders to withdraw cash,
make utility bill payments (e.g. water, gas, electricity and telephone bills) and to
purchase commodity goods from any of the ATM and POS terminals established
under the network.
AB International Finance Limited
AB International Finance Limited (ABIFL) is a company incorporated and domiciled
in Hong Kong and has its registered office and principal place of business at
Room 1608, 16th Floor, Tower 1, Silvercord, 30 Canton Road, Tsim Sha Tsui,
Hong Kong.
Arab Bangladesh Bank Foundation
Bank also has a Subsidiary (99.60% owned by AB Bank) for philanthropic/ CSR
activities known as Arab Bangladesh Bank Foundation (ABBF). This has not been
included in the consolidation as ABBF operated only for philanthropic purpose
and its profit is not distributable to the shareholders. Thus, for ensuring the fair
presentation of the financial statements of the parent company (the Bank), the
Financial Statements of ABBF has not been consolidated.
(c) Any restrictions, or other major
impediments, on transfer of funds or Not Applicable
regulatory capital within the group
(d) The aggregate amount of surplus capital of Aggregate amount of Capital: BDT. 20,000,000
insurance subsidiaries (whether deducted or Name of subsidiary:
subjected to an alternative method) included Arab Bangladesh Bank Foundation (ABBF)
in the capital of the consolidated group.

190 | AB Bank | Annual Report 2020

B) Capital structure

Qualitative disclosure

(a) Summary information on the terms and The terms and conditions of the main features of all capital instruments have
conditions of the main features of all been segregated in line with of the eligibility criteria set forth vide BRPD circular
capital instruments, especially in the case no. 18 dated 21 December 2014 and other relevant instructions given by
of capital instruments eligible for inclusion Bangladesh Bank from time to time. The main features of the capital instruments
in CET 1, Additional Tier 1 or Tier 2. are as follows:
Common Equity Tier 1 capital instruments
Paid-up share capital:
Issued, subscribed and fully paid up share capital of the Bank. It represents Paid
up Capital, Right Shares as well as Bonus Shares issued from time to time.
Statutory reserve:
As per Section 24(1) of the Bank Company Act, 1991 (amendment up to 2018),
an amount equivalent to 20% of the profit before taxes for each year of the Bank
has been transferred to the Statutory Reserve Fund.
General reserve:
General Reserve created for fulfilling any purpose of the Bank.
Retained earnings:
Amount of profit retained with the banking company after meeting up all
expenses, provisions and appropriations.
In this respect, Bank is complied.
Additional Tier 1 Capital
Bank has no any type of Additional Tier I Capital.
Tier 2 Capital
a) General provisions
b) Subordinated debt / instruments issued by the banks that meet the qualifying
criteria for Tier 2 capital
c) Noncontrolling interest i.e. Tier 2 issued by consolidated subsidiaries to third
parties as specified
Less: Regulatory adjustments applicable on Tier 2 capital

BDT in Crore
31.12.2020 31.12.2019
Solo Conso Solo Conso
(b) The amount of Regulatory > Paid up Capital 796 796 758 758
capital, with separate disclosure > Non- repayable share premium account - - - -
of: CET 1 Capital > Statutory reserve 714 714 687 687
> General reserve 230 238 122 130
> Retained earnings 569 671 582 683
> Non- Controlling Interest - 1 - 1
> Non- cumulative irredeemable preference shares - - - -
> Dividend equalization account - - - -
2,309 2,421 2,149 2,260
Additional Tier 1 Capital - - - -
Total Tier 1 Capital 2,309 2,421 2,149 2,260
Tier 2 Capital 1,740 1,838 1,484 1,558
(c) Regulatory Adjustments/Deductions from capital 352 353 278 279
(d) Total eligible capital 3,697 3,905 3,355 3,540

AB Bank | Annual Report 2020 | 191

 C) Capital adequacy

Qualitative Disclosure

(a) A summary discussion of the Capital adequacy is the cushion required to be maintained for covering the Credit Risk, Market
Bank’s approach to assessing the Risk and Operational Risk so as to protect the depositors and general creditors interest against
adequacy of its capital to support such losses. In line with BRPD circular no. 18 dated 21 December, 2014, the Bank has adopted
current and future activities. standardised approach for credit risk, standardised (rule based) Approach for Market Risk and
Basic Indicator Approach for Operational Risk for computing capital adequacy.

  BDT in Crore
31.12.2020 31.12.2019
  Solo Conso Solo Conso

(b) Capital requirement for Credit Risk: 3,155.65 3,175.12 3,013.18 3,029.30

(c) Capital requirement for Market Risk: 72.68 83.60 69.21 80.61

(d) Capital requirement for Operational Risk: 182.24 187.45 231.36 232.21

BDT in Crore
31.12.2020 31.12.2019
Solo Conso Solo Conso

(e) Total capital, CET 1 capital, Total Tier 1 capital and Tier 2 capital ratio: 

  Total minimum capital requirement @10% 3,410.57 3,446.17 3,313.75 3,342.11

  Total capital maintained 3,696.60 3,905.10 3,354.71 3,539.83

  Minimum Tier 1 capital requirement 6.00% 6.00% 6.00% 6.00%

  Minimum Tier 1 capital maintained 5.74% 6.00% 5.65% 5.93%

  Tier 2 capital ratio maintained 5.10% 5.33% 4.48% 4.66%

  Min. total capital plus capital conservation buffer requirement 12.50% 12.50% 12.50% 12.50%

  Min. total capital plus capital conservation buffer maintained 10.84% 11.33% 10.12% 10.59%

(f) Capital Conservation Buffer        

  Capital conservation buffer requirement 2.50% 2.50% 2.50% 2.50%

  Capital conservation buffer maintained 0.00% 0.00% 0.00% 0.00%

                       
(g) Available Capital under Pillar 2 requirement 286.03 458.92 40.96 197.72

Provision against loans and advances has been maintained as per Bangladesh Bank letter no. DBI-1/101/2021-1026 dated 20 April
2021. According to letter, there is a provision shortfall of Tk. 4,946.33 crore against loans and advances which requires to be kept in
next 9 years equally from 2021-2029.

192 | AB Bank | Annual Report 2020

D) Credit Risk

Qualitative disclosure

(a) The general qualitative Bank classifies loans and advances (loans and bill discount in the nature of an advance)
disclosure requirement into performing and Non Performing Loans (NPL) in accordance with the Bangladesh Bank
with respect to credit risk, guidelines in this respect,
including: Any Continuous Loan if not repaid/renewed within the fixed expiry date for repayment or
> Definitions of past due and after the demand by the bank will be treated as past due/overdue from the following day of
impaired (for accounting the expiry date. Any Demand Loan if not repaid within the fixed expiry date for repayment
purposes) or after the demand by the bank will be treated as past due/overdue from the following day
of the expiry date. Whereas, In case of any installment(s) or part of installment(s) of a Fixed
Term Loan is not repaid within the fixed expiry date, the amount of unpaid installment(s) will
be treated as past due/overdue after six months of the expiry date.
Classified loan is categorized under following 03 (three) categories:
> Sub-standard
> Doubtful
> Bad/Loss
> A Continuous Loan, Demand Loan, Fixed Term Loan or any installment(s)/part of
installment(s) of a Fixed Term Loan which will remain past due/overdue for a period of 03
(three) months or beyond but less than 09 (nine) months, the entire loan will be put into the
“Sub-standard (SS)”.
> “A Continuous Loan, Demand Loan, Fixed Term Loan or any installment(s)/part of
installment(s) of a Fixed Term Loan which will remain past due/overdue for a period of 09
(nine) months or beyond but less than 12 (twelve) months, the entire loan will be put into
the “Doubtful (DF)”.
> ‘A Continuous loan, Demand loan, Fixed Term Loan or any installment(s)/part of
installment(s) of a Fixed Term Loan which will remain past due/overdue for a period of 12
(twelve) months or beyond, the entire loan will be put into the “Bad/Loss (B/L)”.
> Description of approaches Provision for loans and advances is made on the basis of quarter-end review by the
followed for specific and management and as per instructions contained in BRPD circular no. 14 dated 23 September
general allowances and 2012, BRPD circular no. 05 dated 29 May 2013, BRPD Circular No. 16 dated 18 November
statistical methods 2014, BRPD Circular No. 04 dated 29 January 2015, BRPD Circular No. 08 dated 02 August
2015, BRPD Circular No. 12 dated 20 August 2017, BRPD Circular No. 15 dated 27 September
2017, BRPD Circular No. 01/2018 dated 20 February 2018, BRPD Circular No. 07 dated 21
June 2018, BRPD Circular No. 03 dated 21 April 2019 and BRPD Circular No. 56 dated 10
December 2020. The rates for provisions are stated below:
Consumer Financing
Short Loans Off
All
Term to BHs/ Balance
Particulars Other SMEF Other
Agri Credit MBs/ Sheet
than HF LP Credit
Credit Card SDs Exposures
HF, LP

Standard 1% 5% 1% 2% 2% 0.25% 2% 1%
UC
SMA - 5% 1% 2% 2% 0.25% 2% 1%

SS 5% 20% 20% 20% 20% 20% 20% 20% 1%

Classified DF 5% 50% 50% 50% 50% 50% 50% 50%

BL 100% 100% 100% 100% 100% 100% 100% 100%

1% Special General Provision for COVID-19 has been kept as per BRPD circular letter no. 56 dated 10 December 2020.

> Discussion of the Bank’s credit The Board approves the credit policy keeping in view relevant Bangladesh Bank guidelines
risk management policy to ensure best practice in credit risk management and maintain quality of assets. Authorities
are properly delegated in ensuring check and balance in credit operation at every stage i.e.
screening, assessing risk, identification, management and mitigation of credit risk as well
as monitoring, supervision and recovery of loans with provision for early warning system.
There is a separate Credit Risk Management Division for ensuring proper risk management
of Loans and Credit Administration Management Division for monitoring and recovery of
irregular loans. Internal control and compliance division independently assess quality of loans
and compliance status at least once in a year. Adequate provision is maintained against
classified loans as per Bangladesh Bank guidelines. Status of loans are regularly reported to
the Board/ Board Audit Committee. Besides, credit risk management process involves focus
on monitoring of top 30 loans, Sectoral exposures etc. among others limit.

AB Bank | Annual Report 2020 | 193

 31.12.2020 31.12.2019
In (%) BDT/Cr. In (%) BDT/Cr.
(b) Total gross credit risk exposures broken Overdraft 6.77% 1,860 8.08% 2,072
down by major types of credit exposure Cash credit 0.01% 3 0.01% 3
Time loan 16.64% 4,573 15.76% 4,043
Term loan 67.80% 18,632 67.17% 17,229
Forced loan 4.71% 1,296 4.29% 1,100
Bills under LC 0.01% 4 0.02% 5
Trust receipt 2.26% 622 2.63% 676
Packing credit 0.03% 10 0.07% 18
Loan against accepted bills 0.02% 5 0.08% 22
Loan-EDF 0.56% 155 0.55% 141
Consumer Loan 0.50% 136 0.50% 129
Staff loan 0.48% 131 0.55% 140
Bills purchased and discounted 0.21% 57 0.29% 73
Total 100% 27,483 100% 25,651
(c) Geographical distribution of exposures, Urban branches
broken down in significant areas by major Dhaka 66.16% 18,023 76.57% 19,453
types of credit exposure
Chittagong 19.85% 5,409 17.70% 4,498
Khulna 5.02% 1,369 1.44% 365
Sylhet 0.80% 218 0.46% 118
Barisal 0.15% 41 0.08% 21
Rajshahi 3.23% 879 1.58% 402
Rangpur 2.99% 815 1.94% 493
Mymensingh 1.80% 490 0.22% 56
100% 27,243 100% 25,406
Rural branches
Dhaka 56.58% 105 68.55% 122
Chittagong 34.92% 65 24.64% 44
Khulna 0.00% - 0.00% -
Sylhet 5.89% 11 2.54% 5
Barisal 0.00% - 0.00% -
Rajshahi 0.00% 0.002 0.00% -
Rangpur 0.03% 0.06 0.00% -
Mymensingh 2.57% 5 4.28% 8
100% 186 100% 178
Outside Bangladesh
0.20% 54 0.26% 67
ABBL, Mumbai branch
100% 27,483 100% 25,651
(d) Industry or counterparty type distribution Agriculture 1.77% 486 1.49% 382
of exposures, broken down by major Large and medium scale indus. 30.64% 8,421 27.35% 7,015
types of credit exposure. Working capital 20.74% 5,701 21.38% 5,485
Export 0.56% 154 1.46% 376
Commercial lending 18.87% 5,187 20.56% 5,274
Small and cottage industry
1.63% 449 1.16% 297
Others
25.78% 7,084 26.60% 6,822
100% 27,483 100% 25,651
(e) Residual contractual maturity breakdown Repayable – on demand 1.73% 474 1.47% 376
of the whole portfolio, broken down by – upto 3 months 34.26% 9,415 31.25% 8,016
major types of credit exposure. – over 3 months but below 1 year 46.65% 12,822 50.55% 12,965
– over 1 year but below 5 years 11.54% 3,172 12.47% 3,199
– over 5 years
5.82% 1,600 4.27% 1,096
100% 27,483 100% 25,651

194 | AB Bank | Annual Report 2020

 31.12.2020 31.12.2019
In (%) BDT/Cr. In (%) BDT/Cr.
(f) By major industry or counterparty type:
i. Amount of impaired loans and if available, past due loans, provided
16.79% 4,615 18.28% 4,689
separately
ii. Specific and general provisions - 2,022 - 1,528
iii. Charges for specific allowances and charge-offs during the period - 196 - 192

2020 2019
(g) Gross Non Performing Assets (NPAs) BDT/Cr. BDT/Cr.
(NPAs) to outstanding Loans & advances Non Performing Assets (NPAs) 4,615 4,689
NPAs to outstanding loans and advances 16.79% 18.28%
Movement of NPAs Bangladesh Operations:

Opening balance 4,689.05 7,972.78

Additions 88.63 1,325.45
Reductions 162.22 4,609.18
Closing balance 4,615.46 4,689.05
Movement of specific provision for NPAs
Opening balance 699.39 507.88
Provision made during the period 196.37 223.21
Write-off - (31.70)
Closing balance 895.76 699.39

E) Equities: Disclosures for Banking book positions

Qualitative Disclosure

(a) The general qualitative disclosure

requirement with respect to the equity
risk, including:
> differentiation between holdings on Investment in equity mainly for capital gain purpose but Bank has
which capital gains are expected and some investment for relationship and strategic reasons.
those taken under other objectives
including for relationship and strategic
reasons
> discussion of important policies Quoted shares are valued at cost. Necessary provision is maintained
covering the valuation and if market price fall below the cost price. Unquoted shares are valued
accounting of equity holdings in at cost.
the Banking book. This includes the
accounting techniques and valuation
methodologies used, including key
assumptions and practices affecting
valuation as well as significant changes
in these practices
(b) Value disclosed in the balance sheet
of investment, as well as the fair value
of those investments; for quoted
securities, a comparison to publicly Not applicable
quoted share values where the share
price is materially different from fair
value.
(c) The cumulative realized gains (losses)
BDT in Crore
arising from sales and liquidations in
(5.52)
the reporting period (2020)

AB Bank | Annual Report 2020 | 195

 E) Equities: Disclosures for Banking book positions

Qualitative Disclosure (cont.)

(d) > Total unrealized gains (losses) (120.27)

> Total latent revaluation gains

Nil
(losses)

> Any amounts of the above

Nil
included in Tier 2 capital
(e) Capital requirements broken down by Nil
appropriate equity grouping, consistent
with the bank’s methodology, as well
as the aggregate amounts and the
type of equity investments subject to
any supervisory provisions regarding
regulatory capital requirements

F) Interest Rate Risk in the Banking Book (IRRBB)

Qualitative Disclosure

(a) The general qualitative disclosure Interest rate risk is the potential that the value of the On Balance Sheet
requirement including the nature and the Off Balance Sheet position of the Bank would be negatively
of IRRBB and key assumptions, effected with the change in the interest rate. The vulnerability of an
including assumptions regarding loan institution towards the advance movement of the interest rate can be
prepayments and behavior of non- gauged by using duration GAP under Stress Testing Analysis.
maturity deposits, and frequency of
AB Bank has also been exercising the Stress Testing using the duration
IRRBB measurement.
GAP for measuring the Interest Rate Risk on its On Balance Sheet
exposure for estimating the impact of the net change in the market
value of equity on the Capital to Risk Weighted Assets Ratio (CRAR)
due to change in interest rates only on its On Balance Sheet position
(as the Bank holds no interest bearing Off Balance Sheet positions
and or Derivatives). Under the assumption of three different interest
rate changes i.e. 1%, 2% and 3%.
Quantitative Disclosure
(b) The increase (decline) in earnings or BDT in Crore
economic value (or relevant measure
31.12.20 31.12.19
used by management) for upward and
downward rate shocks according to Market value of assets 38,574 35,822
management’s method for measuring
IRRBB, broken down by currency (as Market value of liability 36,126 34,163
relevant). Weighted avg. duration GAP 0.58 0.77
CRAR after different level of Shocks:
Minor level 10.27% 9.44%
Moderate level 9.69% 8.74%
Major level 9.10% 8.03%

196 | AB Bank | Annual Report 2020

G) Market Risk
Qualitative Disclosure

(a) > Views of BOD on trading/ The Board approves all policies related to market risk, sets limits and
investment activities reviews compliance on a regular basis. The objective is to provide
cost effective funding last year to finance asset growth and trade
related transaction.
> Methods used to measure Market risk Standardised approach has been used to measure the market risk. The
total capital requirement in respect of market risk is the aggregate capital
requirement calculated for each of the risk sub-categories. For each risk
category minimum capital requirement is measured in terms of two separately
calculated capital charges for ‘specific risk’ and ‘general market risk’.
> Market risk management system The Treasury Division manage market risk covering liquidity, interest rate
and foreign exchange risks with oversight from Asset-Liability Management
Committee (ALCO) comprising senior executives of the Bank. ALCO is chaired
by the Managing Director. ALCO meets at least once in a month.
> Policies and process for mitigating There are approved limits for Market risk related instruments both on-balance
market risk
sheet and off-balance sheet items. The limits are monitored and enforced on a
regular basis to protect against market risks. The exchange rate committee of the
Bank meets on a daily basis to review the prevailing market condition, exchange
rate, forex position and transactions to mitigate foreign exchange risks.

BDT in Crore
31.12.2020 31.12.2019
(b) The capital requirements for:
Interest rate risk 30.15 23.16
Equity position risk 35.52 35.27
Foreign exchange risk 7.01 10.78
Commodity risk - -
72.68 69.21

H) Operational Risk

Qualitative Disclosure

(a) > Views of BOD on system to reduce The policy for operational risks including internal control and compliance
Operational Risk risk is approved by the board taking into account relevant guidelines of
Bangladesh Bank. Audit Committee of the Board oversees the activities
of Internal Control and Compliance Division (ICCD) to protect against
all operational risk.

> Performance gap of executives AB has a policy to provide competitive package and best working
and staffs environment to attract and retain the most talented people available
in the industry. AB’s strong brand image plays an important role in
employee motivation. As a result, there is no significant performance
gap.
> Potential external events No potential external events is expected to expose the Bank to
significant operational risk.

AB Bank | Annual Report 2020 | 197

 > Policies and processes for The policy for operational risks including internal control and
mitigating operational risk compliance risk is approved by the Board taking into account relevant
guidelines of Bangladesh Bank. Policy guidelines on Risk Based
Internal Audit system is in operation as per RBA branches are rated
according to their risk status and branches scoring more on risk
status are subjected to more frequent audit by Internal Control and
Compliance Division (ICCD). It is the policy of the bank to put all the
branches of the bank under any form of audit at least once in a year.
ICCD directly reports to Audit Committee of the Board. In addition
there is a Vigilance Cell established in 2009 to reinforce operational
risk management of the bank. Bank’s Anti-Money laundering activities
are headed by CAMELCO and their activities are devoted to protect
against all money laundering and terrorist finance related activities.
Apart from that, there is adequate check & balance at every stage of
operation, authorities are properly segregated and there is at least
dual control on every transaction to protect against operational risk.
> Approach for calculating capital Basic Indicator Approach was used for calculating capital charge for
charge for operational risk operational risk as of the reporting date.

Quantitative Disclosure BDT in Crore

31.12.20 31.12.19
(b) The capital requirements for Operational Risk 182.24 231.36

I) Liquidity Ratio

Qualitative Disclosure

(a) > Views of BOD on system to reduce Liquidity risk is the potential for loss to the bank arising from either its
liquidity Risk inability to meet its obligations of depositors as they fall due or to fund
in increased assets as per commitment.
To mitigate liquidity risk Bank asses its risk appetite and manage the
risk within a structured frame work. Professional resources are deployed
to set the limits and procedures and get them approved by the Board.
To reduce the liquidity Risk in a structured way, Bank monitors various
indicators like regulatory indicators(CRR, SLR, MTFR, MCO, ADR, LCR,
NSFR) and uses internal monitoring tools (WBG, CLP and MAT)
> Methods used to measure Liquidity risk Liquidity measurement involves forecasting the Bank’s cash inflows
against its outflows to identify the potential for any net shortfalls
going forward. For measuring Bank uses some simple techniques as
mentioned below:
> Bank prepares Structural Liquidity Profile (SLP) on monthly basis.
SLP is used to estimate the Bank’s cash inflows and outflows and
thus net deficit or surplus (GAP) over a series of specified time
periods. Bank focuses on the maturity of its assets and liabilities in
different tenors. Excessive longer tenor lending against short term
borrowing is monitored as this can put the Bank’s balance sheet in
a very critical and risky position.
> Bank has a Contingency Funding Plan (CFP) in place. Contingency
Funding Plan (CFP)is a set of policies and procedures that serves
as a blueprint for the Bank to meet its funding needs in a timely
manner and at a reasonable cost. Bank maintains sufficient high
quality liquid assets to meet the liquidity crisis period.

198 | AB Bank | Annual Report 2020

 > Bank estimates the funding requirement both is normal and stress
conditions arising from on and off balance sheet exposures. Bank
monitors its products which are interest rate sensitive. Those are
taken care of at the time of interest rate movement in the market
based on behavior of clients and other competitors.

> Bank monitors liability concentration level. Highly concentrated

deposits means bank is relying on too few providers or funding
sources. Bank has to be ready for arranging fund if concentrated
deposits are withdrawn at a time or Bank place this fund for short
term lending.
> Bank uses variety of ratios to quantify the liquidity and interpret
them taking into account the qualitative factors.

> Liquidity risk management system The Management of the Bank measures the liquidity risk and manage
them under the Board approved guidelines and policies. Bank prepares
extensive reports for monitoring the balance sheet movement on daily
basis. Bank also monitors the market information of the country and
global market. Bank has an Asset Liability Committee (ALCO).
ALCO is a senior management level committee responsible for supervision
and management of liquidity and other risks using different monitoring
tools. They monitor the limit for indicators set by Bangladesh Bank as well
as Bank’s Board.
Key elements of an effective liquidity risk management process include an
efficient MIS to measure, monitor and control existing as well as future
liquidity risks and reporting them to senior management and the Board.
Bank is therefore working for continuous improvement of MIS.
> Policies and processes for mitigating Bank has set of policies duly approved by the Board for mitigating
liquidity risk liquidity risk. These policies are supported by effective procedures to
measure, achieve and maintain liquidity. The ALCO recommends the
policies for liquidity risk which is reviewed and approved by the Board.
Operating liquidity is managed by the Bank for day to day fund
requirements. And for managing the crisis period Bank follows the
CFP approved by the Board.
For regulatory purposes the Bank maintains specific amount of assets
classed as “liquid”, based on its liabilities. In addition, the Bank has to
maintain excess liquid assets as per CFP.

(b) BDT/Cr.
31.12.2020
Liquidity Coverage Ratio 146.45%
Net Stable Funding Ratio (NSFR) 102.49%
Stock of high quality liquid assets 7,168.62
Total net cash outflows over the next 30 calendar days 4,895.09
Available amount of stable funding 30,236.65
Required amount of stable funding 29,501.47

AB Bank | Annual Report 2020 | 199

 J) Leverage Ratio

Qualitative Disclosure
(a) > Views of BOD on system to reduce For reducing the leverage up to an optimum level, the Board of
excessive leverage Directors of the Bank always keen to focus on the capital strength
and the quality of the assets. Board is always concern to maximise the
core capital portion and keep the growth of on and off balance sheet
exposures at a favourable level.
Key initiatives of the Board:
• Emphasised to keep LD ratio at the optimal level/budgeted level
• Stressed to keep the interest rate spread at the optimal level for
ensuring the profitability of the Bank
• Market competitive Cost of Fund must be maintained
• Non-funded business i.e. import, export and bank guarantee to
be expedited as per budget
• Operational expenses must be reduced at rational level
• Decentralisation of portfolio in SME and retail business
• Special Mentioned Account (SMA) and classified loans are to be
closely monitored for ensuring asset quality, and
• Recovery cell must ensure the monitoring of risk assets
frequently to maintain the asset quality.
> Policies and processes for Primary principle of the Board is to enhance the core capital of the
managing excessive on and Bank. To keep the leverage at a reduced level, Board emphasised
off-balance sheet leverage Management to build strong internal control system specifically in the
risk points by putting dual control in each phase. Apart from this, by
the instruction of the Board, Management formed different Committees
to work under specific Terms of Reference (ToR) and to report to the
Board.
All these above measures as a whole, helps the Management to keep
the exposures at sound level.
> Approach for calculating exposure The exposure calculation for the leverage ratio is generally followed the
accounting measure of exposure. In order to measure the exposure
consistently with financial accounts, the following is applied by the
bank:
i. On balance sheet and non-derivative exposures are net of specific
provisions and valuation adjustments (e.g. surplus/deficit on
Available for sale (AFS)/Held-for-trading (HFT) positions).
ii. Physical or financial collateral, guarantee or credit risk mitigation
purchased is not allowed to reduce on-balance sheet exposure.

iii. Netting of loans and deposits is not allowed.

On Balance Sheet Items
Bank included items using their accounting balance sheet for the
purposes of the leverage ratio. In addition, the exposure measure is
included the following treatments for Securities Financing Transactions
(e.g. repo, reverse repo etc.):
Repurchase agreements and securities financing:
Securities Financing Transactions (SFT) are a form of secured funding
and therefore an important source of balance sheet leverage that
included in the leverage ratio. Therefore Banks calculate SFT for the
purposes of leverage ratio by applying:
• The accounting measure of exposure; and
• Without netting various long and short positions with the same
counterparty

200 | AB Bank | Annual Report 2020

 Off Balance Sheet Items
Bank calculates the Off-Balance Sheet (OBS) items specified in Risk
based Capital Adequacy Guidelines issued by Bangladesh Bank vide
BRPD circular no. 18 dated 21 December 2014. OBS exposures
calculation is given below for considering Leverage Ratio of the Bank:
Notional Exposure
Exposures Types CCF Amount
BDT/Cr.
Direct credit substitutes 100% 710 710
Performance related contingencies 50% 949 475
Short-term self-liquidating trade letters of credit 20% 557 111
Lending of securities or posting of securities as collateral 100% - -
Other commitments with certain drawdown 100% - -
Commitments with original maturity of one year or less 20% 992 198
Commitments with original maturity of over one year 50% - -
Other commitments that can be unconditionally cancelled
by any time 0% 1,496 -

Market related Off-Balance sheet exposure 1% 0.26 0.003

Total 4,705 1,495
(b) BDT/Cr.
31.12.2020
Leverage Ratio 5.02%
On balance sheet exposure 37,680
Off balance sheet exposure 1,645
Total deduction from On and Off-Balance Shhet Exposure 352
Total exposure 38,973

K) Remuneration

Qualitative Disclosure

(a) Information relating to the bodies that oversees remuneration.

> Name of the bodies that The primary body that currently oversees remuneration practices
oversees remuneration includes: In charge of remuneration & payroll, Head of HR, and
Managing Director of the Bank.
> Name, composition and Board of Directors of the bank is the main body which approves the
mandate of the main body remuneration proposals/changes as when needed based on the
overseeing remuneration. recommendation of the primary body
> External consultants Periodically services of external consultants are sought in the
whose advice has been process of remuneration update/survey in every 2/3 years to ensure
sought, the body by which competitive effectiveness of remuneration structure. Survey focuses
they were commissioned, on gross remuneration package in each job grade i.e. minimum, mid
and in what areas of the point and maximum in the given scale. Gross salary includes different
remuneration process. elements like Basic pay and other admissible emoluments.
> A description of the scope Key objective of the remuneration policy is to offer competitive
of the bank’s remuneration remuneration package to employees in each job grade commensurate
policy (eg by regions, with job responsibilities irrespective of any location/region. It is
business lines), including done through periodical remuneration survey with local comparators
the extent to which it engaging consultant. Similarly, for foreign subsidiaries, it is done in
is applicable to foreign context of specific country remuneration market status to remain
subsidiaries and branches. competitive in the foreign market that ensures attracting and retention
of the best performers.

AB Bank | Annual Report 2020 | 201

 > A description of the types Divisional Heads, Departmental Heads, Senior Members of
of employees considered Management, Head of Branches/Business Units supported by SMT are
as material risk takers the material risk takers in business.
and as senior managers,
including the number of
employees in each group.
(b) Information relating to the design and structure of remuneration processes.
> An overview of the key features A scale of salary structure with a minimum – mid point and maximum
and objectives of remuneration package for each job grade is available The package includes: Basic
policy. pay, Housing, Medical, conveyance (when car is not allowed), Utilities,
Maintenance, Leave fare assistance, Personal pay (in appropriate
cases) etc.
Salary progression in the form of annual merit pay linked to individual
performance within the scale etc. Service benefits like Provident Fund,
Gratuity, Group term insurance, festival bonus, car facilities and related
cost as per bank’s service rules are components of total compensation.
> Whether the remuneration Objective of remuneration policy is to pay competitively within industry
committee reviewed the firm’s norms in order to attract and retain good employees
remuneration policy during
Pay for performance link to merit measured in terms of delivery of set
the past year, and if so, an
KPI annually (annual merit pay)
overview of any changes that
were made. Bank’s service rules stands as a guide besides instructions and
guidance from the Board from time to time
Remuneration structure is updated periodically usually in an interval of
2/3 years to remain competitive in the market with the approval of the
Board of Directors of the Bank. No major change made in the recent past
> A discussion of how the bank Risks and compliance employees carry out their job independently as
ensures that risk and compliance per terms of reference. In respect of remuneration, they are treated
employees are remunerated equally in line with other regular employees
independently of the businesses
they oversee.
(c) Description of the ways in which current and future risks are taken into account in the remuneration
processes.
> An overview of the key risks that The business risks including credit/default risk, compliance and
the bank takes into account when reputational risk, financial and liquidity risk are considered while
implementing remuneration implementing remuneration measures for each employee/group of
measures. employees.
> An overview of the nature and Different set of measures are in practice based on nature of business
type of the key measures used lines/segments etc. these measures are primarily focused on the
to take account of these risks, business targets/goals set for each area of operation, branch vis-à-vis
including risks difficult to measure actual results achieved as of the reporting date. The most important
tools and indicators used for measuring the risks are asset quality
(NPL ration), LD ratio, Net Interest Margin (NIM), provision coverage
ratio, cost income ratio, cost of fund, growth of net profit as well as
non-financial indicators i.e. compliance status with regulatory norms/
instructions, service delivery etc. are brought to all concerned of the
bank from time to time.
> A discussion of the ways in Individual employee’s performance standards are set in term of financial
which these measures affect and non-financial indicators (KPI) early each year which are expected
remuneration. to be delivered by them individually. Performance evaluation at the end
of year results in variation in performance outcome (KPI fully achieved,
partially achieved and not achieved) leading to variation in performance
reward (annual merit pay) thus affects in remuneration.

202 | AB Bank | Annual Report 2020

 > A discussion of how the nature Based on differentiating performance outcome employees are rewarded
and type of these measures annually. Differentiating reward i.e. good, better and best impact
has changed over the past on competitive motivation at work as usual. No material change in
year and reasons for the remuneration package.
change, as well as the impact
of changes on remuneration.
(d) Description of the ways in which the bank seeks to link performance during a performance
measurement period with levels of remuneration.
> An overview of main Performance matrix in terms of broad KPI is set by the Board for the
performance metrics for Management covering business lines/different segments of businesses
bank, top-level business lines each year. The Management in turn develops strategies and set
and individuals. performance KPI for individual employees across functions/business to
activate and achieve the set targets/KPI in delivering business results. The
most common KPIs are loan deposit ratio, cost of fund, cost income ratio,
yield on loan, quality of asset, profit target, provision coverage ration,
capital to risk weighted ratio, ROE, ROA, Liquidity position, maintenance
of CRR and SLR etc. beside non-financial KPI.
> A discussion of how amounts Annual merit pay i.e. merit increment of employees are linked to
of individual remuneration performance outcome based on individual performance criteria (KPI).
are linked to bank-wide and Merit increase is also liked to other elements of remuneration package, so
individual performance. aggregate of all employees has reasonable impact on the remuneration
package and not insignificant.
> A discussion of the measures No documented criteria as such is available to adjust remuneration of
the bank will in general employees in the event of weak business performance matrix. If profit
implement to adjust target is not met in a given year, generally annual merit increment is
remuneration in the event lower.
that performance metrics are
weak
(e) Description of the ways in which the bank seek to adjust remuneration to take account of longer-term
performance.
> A discussion of the bank’s The concept of variable remuneration or for that matter deferred payment
policy on deferral and vesting system is not in practice. A share of profit in the form of incentive bonus
of variable remuneration is allowed to employees as approved by the board when profit target is
and, if the fraction of variable favourably met.
remuneration that is deferred
differs across employees
or groups of employees, a
description of the factors that
determine the fraction and
their relative importance.
> A discussion of the
bank’s policy and criteria
for adjusting deferred
remuneration before vesting Not applicable
and (if permitted by national
law) after vesting through
clawback arrangements.

AB Bank | Annual Report 2020 | 203

 (f) Description of the different forms of variable remuneration that the bank utilises and the rationale
for using these different forms.
> An overview of the forms
of variable remuneration
offered (i.e. cash,
Not applicable
shares and share-linked
instruments and other
forms
> A discussion of the use
of the different forms of
variable remuneration
and, if the mix of
different forms of variable
remuneration differs
Not applicable
across employees or
groups of employees),
a description the factors
that determine the
mix and their relative
importance.
(g) Number of meetings The main body that oversees remunerations organizes meeting as & when
held by the main body needed to discuss issues arising in the process of administration.
overseeing remuneration
during the financial year
and remuneration paid to
its member.
> Number of employees Not applicable (Variable remuneration practice is not available)
having received a variable
remuneration award
during the financial year.
> Number and total amount Bank has disbursed 02 (two) festival bonus among the employees
of guaranteed bonuses amounting to taka 173,467,915 during the year 2020.
awarded during the
financial year.
> Number and total amount
of sign-on awards made Not applicable
during the financial year.
> Number and total amount
of severance payments
None during the financial year
made during the financial
year
> Total amount of
outstanding deferred
remuneration, split into
Not applicable
cash, shares and share-
linked instruments and
other forms.

204 | AB Bank | Annual Report 2020

k) Remuneration
> Total amount of deferred Remuneration
Not applicable
paid out in the financial year.
(h) Breakdown of amount of remuneration awards for the financial year to show:
> Fixed and variable BDT 274.08 crore (Fixed including annual merit pay)
> Deferred and non-deferred. Not applicable
> Different forms used (cash, shares and
Not applicable
share linked instruments, other forms).

Quantitative information about employees’ exposure to implicit and explicit adjustments of deferred
remuneration and retained remuneration:

i) > Total amount of outstanding

deferred remuneration and retained
Not applicable
remuneration exposed to ex post
explicit and/or implicit adjustments.
> Total amount of reductions during
the financial year due to ex post Not applicable
explicit adjustments.
> Total amount of reductions during
the financial year due to ex post Not applicable
implicit adjustments.

AB Bank | Annual Report 2020 | 205

 AB Bank Limited
Mumbai Branch
Balance Sheet Annexure E
As at 31 December 2020

31.12.2020 31.12.2019
INR INR
PROPERTY AND ASSETS
Cash 49,099,278 27,529,238
In hand (including foreign currencies) 2,975,111 3,310,972
Balance with Reserve Bank India 46,124,167 24,218,266
(including foreign currencies)

Balance with other banks and financial institutions 1,467,013,519 1,015,876,165

In India 210,346,687 53,456,646
Outside India 1,256,666,832 962,419,520

Money at call and on short notice 360,000,000 240,000,000

Investments 404,174,970 439,603,500

Government 404,174,970 439,603,500

Loans and advances 467,995,126 566,931,554

Loans, cash credits, overdrafts, etc. 29,377,189 26,643,478
Bills purchased and discounted 438,617,937 540,288,076

Fixed assets including premises, furniture and fixtures 4,932,319 7,152,271

Other assets 161,485,475 279,495,461

Total Assets 2,914,700,687 2,576,588,188

LIABILITIES AND CAPITAL

Liabilities

Deposits and other accounts 1,827,518,908 1,451,258,495

Current deposits 1,657,348,235 1,299,551,703
Demand deposits 123,609 123,613
Bills payable 110,148 456,650
Savings deposits 21,305,255 18,527,874
Fixed deposits 148,631,661 132,598,655

Other liabilities 75,436,396 154,726,939

Total Liabilities 1,902,955,303 1,605,985,435

Capital/Shareholders’ Equity

Total Shareholders’ Equity 1,011,745,384 970,602,753

Paid-up capital 369,822,602 369,822,602
Statutory reserve 281,039,231 272,939,722
Other reserve 3,861,892 -
Retained earnings 357,021,659 327,840,429

Total Liabilities and Shareholders’ Equity 2,914,700,687 2,576,588,188

Off-Balance Sheet Items

Contingent liabilities 26,096,215,667 12,569,919,604

Acceptances and endorsements 172,716,881 26,169,384

Letters of guarantee 5,660,514 1,427,800
Bills for collection 25,917,838,272 12,542,322,420

Other commitments - -

Total 26,096,215,667 12,569,919,604

206 | AB Bank | Annual Report 2020

AB Bank Limited
Mumbai Branch
Profit and Loss Account Annexure E-1
For the year ended 31 December 2020

2020 2019
INR INR
Operating Income

Interest income 33,970,764 47,045,867

Interest paid on deposits and borrowings, etc. (11,174,395) (15,830,545)
Net interest income 22,796,369 31,215,322

Investment income 23,567,619 23,880,813

Commission, exchange and brokerage 219,673,239 267,420,344
Other operating income 1,070,871 1,656,674
244,311,729 292,957,831
Total operating income (a) 267,108,098 324,173,153

Operating Expenses

Salary and allowances 15,680,733 16,492,779

Rent, taxes, insurance, electricity, etc. 21,132,480 19,920,587
Legal expenses 7,085 82,295
Postage, stamps, telecommunication, etc. 4,054,805 6,424,883
Stationery, printing, advertisement, etc. 1,173,778 1,365,588
Auditors’ fees 649,640 887,260
Depreciation and repairs of Bank’s assets 2,658,334 4,375,350
Other expenses 200,425,551 115,341,620
Total operating expenses (b) 245,782,405 164,890,361
Profit before provision (c = a-b) 21,325,693 159,282,793

Provision against loans and advances (550,000) (1,000,000)

Other provisions 150,000 (650,000)
Total provision (d) (400,000) (1,650,000)
Profit before taxation (c-d) 21,725,693 160,932,793
Provision for taxation (19,416,938) 68,785,834
Current tax (19,593,336) 69,252,841
Deferred tax 176,397 (467,007)
Net profit after taxation (PAT) 41,142,631 92,146,959

AB Bank | Annual Report 2020 | 207

 AB Bank Limited
Islami Banking Branch
Balance Sheet Annexure F
As at 31 December 2020

31.12.2020 31.12.2019
Taka Taka
PROPERTY AND ASSETS
Cash in hand 268,250,549 286,314,047
Cash in Hand (Including foreign currencies) 4,933,125 4,489,262
Balance with Bangladesh Bank and its Agent Banks (Incl. FC) 263,317,424 281,824,785

Balance with Other Banks and Financial Institutions 1,348,247,393 1,739,470,715

In Bangladesh 1,348,247,393 1,739,470,715

Investment in shares & other financial institutions 397,800,000 280,000,000

Government (BGIIB For SLR) 397,800,000 280,000,000

Investments 6,510,299,811 6,041,664,709

Fixed Assets 6,685,044 7,337,839

Other Assets 99,243,204 58,133,724

8,630,526,001 8,412,921,035

LIABILITIES AND CAPITAL

Liabilities

Placement from Banks (BGIIB) & Other Financial Institutions 816,485,540 1,816,519,380

Deposits and Other Accounts 7,436,081,443 6,276,313,435

Mudaraba Savings Deposits 137,255,111 94,959,349
Mudaraba Term Deposits 5,444,950,896 4,490,609,538
Other Mudaraba Deposits 1,804,024,982 1,639,998,318
Al-Wadeeah Current and Other Deposit Accounts 40,223,141 35,340,300
Bills Payable 9,627,313 15,405,931

Other Liabilities 377,959,018 320,088,220

Total Liabilities 8,630,526,001 8,412,921,035

Contingent Liabilities
Letter of Guarantee 19,806,054 16,806,354
Irrevocable Letters of Credit (including Back to Back Bills) 58,861,855 123,881,000
Total 78,667,909 140,687,354

Other Commitments - -
Total Off-Balance Sheet items including Contingent Liabilities 78,667,909 140,687,354

208 | AB Bank | Annual Report 2020

AB Bank Limited
Islami Banking Branch
Profit and Loss Account Annexure F-1
For the year ended 31 December 2020

2020 2019
Taka Taka

Investment Income 632,085,776 654,575,625

Profit paid on Deposits 610,282,050 580,595,526

Net Investment Income 21,803,726 73,980,099

Income from Investments in Shares/Securities 12,391,069 15,268,651

Commission, Exchange and Brokerage 2,397,793 3,115,023

Other Operating Income 223,250 149,769

Total Operating Income 36,815,838 92,513,541

Operating Expenses

Salaries and Allowances 20,787,688 27,336,509

Rent, Taxes, Insurance, Electricity etc. 1,440,142 1,510,532

Postage, Stamps, Telecommunication etc. 240,570 238,572

Stationeries, Printing and Advertisement etc. 407,504 525,228

Shariah Supervisory Committee’s Fees & Expenses 98,320 111,262

Depreciation and repair to Bank’s Assets 1,100,186 1,514,140

Other Expenses 6,547,846 6,564,644

Total Operating Expenses 30,622,256 37,800,886

Operating Profit 6,193,583 54,712,655

AB Bank | Annual Report 2020 | 209

 AB Bank Limited
Islami Banking Branch
Profit paid on deposits Annexure G
As at 31 December 2020

Profit and loss of Islami Banking Branch is calculated annually as on 31 December in every year. More than 60% of investment income is
distributed among the different types of Mudaraba depositors following the weightage system and the remaining portion is retained by the
bank to meet administrative expenses and investment loss offsetting reserve. Provisional profit rates are applied to the different types of
deposit A/Cs as decided by the Bank from time to time commensurate with weightage taking into consideration of the industry trend and that
of the rates of other Islamic banks in the Country.

In the year 2020 final profit has been paid to the depositors as per following weightage and rates:

Provisional
Types of Deposit Weightage Final Rate
Profit Rate

1. Mudaraba Savings Deposits 0.29 3.5 3.51

2. Mudaraba Savings Deposits (School Banking) 0.67 8 8.01
3. Mudaraba Special Notice Deposits
a. General 0.21-0.29 2.50-3.50 2.51-3.51
b. Inter - Bank 0.25-0.63 3.00-7.50 3.00-7.50
4.    Mudaraba Term Deposits (Core deposit)
            24 Months 0.67-0.83 8.00-10.00 8.01-10.01
            12 Months 0.52-0.96 6.25-11.50 6.26-11.51
              9 Months 0.48-0.73 5.75-8.75 5.76-8.76
              6 Months 0.50-0.92 6.00-11.00 6.01-11.01
              4 Months 0.46-0.90 5.50-10.75 5.51-10.76
              3 Months 0.46-0.96 5.50-11.50 5.51-11.51
              1 Month 0.33-0.50 4.00-6.00 4.00-6.01
5.    Mudaraba Hajj Deposit Scheme 0.75-0.96 9.00-11.50 9.01-11.51
6.    Mudaraba Pension Deposit Scheme 0.60-1.00 6.00-12.00 6.01-12.01
7.    Mudaraba Monthly Profit Payment Scheme 0.05-0.96 6.00-11.50 6.01-11.51
8.    Mudaraba Cash WAQF Deposit 0.67-0.88 8.00-10.50 8.01-10.51

A competent Shariah Supervisory Committee consisting of Islamic scholars, Ulema, Fuqaha and Islamic bankers headed by Justice
Siddiqur Rahman Miah, a prominent Islamic scholar guides the Islamic banking operations of the Kakrail Islami Banking Branch (KIBB).
During the year 2020, Shariah Supervisory Committee met physically and reviewed different operational issues. The Committee also audited
the branch operations through it’s Muraquib and reviewed the audit report in it’s regular meeting. Shariah Supervisory Committee observed
that both the officials and clients of the Branch became more cautious about the compliance of Shariah Principles.

210 | AB Bank | Annual Report 2020

Custodian Wing
Independent Auditors’ Report to the Shareholders
Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of AB Bank Limited (Custodian Wing), which comprise the statement of financial position (balance
sheet) as at 31 December 2020 and the statement of profit or loss and other comprehensive income (profit and loss account) for the year
then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the AB Bank Limited (Custodian
Wing) as at 31 December 2020, and of its financial performance for the year then ended in accordance with International Financial Reporting
Standards (IFRSs) as explained in note # 3.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those are further described
in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Bank in accordance
with the ethical requirements that are relevant to our audit of the financial statements in Bangladesh, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.

Other matter
The financial statements of the AB Bank Limited (Custodian Wing) for the year ended 31 December 2019 were audited by S.F. AHMED & CO
Chartered Accountants, who expressed an unmodified opinion on those statements on 29 June 2020.

Other Information

Management is responsible for the other information. The other information comprises all of the information included in the Annual Report
other than the financial statements and our auditor’s report thereon. The Annual Report of AB Bank Limited which includes the report of AB
Bank Limited, Custodian Wing is expected to be made available to us after the date of this auditor’s report.
Our opinion on the financial statements does not cover other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes
available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter
to those charged with governance.

Responsibilities of Management and Those Charged with Governance for the Financial Statements and Internal Controls
Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs, the Securities
and Exchange Commission (Securities Custodian Service) Rules, 2003, Depository (User) Regulations, 2003 and for such internal controls as
management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, management is responsible for assessing the AB Bank Limited (Custodian Wing)’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the AB Bank Limited (Custodian Wing) or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the AB Bank Limited (Custodian Wing)’s financial reporting process.

Auditor’s Responsibilities for the Audit of Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgments and maintain professional skepticism throughout the audit.
We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of AB Bank Limited (Custodian Wing)’s internal Control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

AB Bank | Annual Report 2020 | 211

 • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the AB Bank Limited (Custodian
Wing)’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause
the AB Bank Limited, Custodian Wing to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.

Report on Other Legal and Regulatory Requirements

We also report that:
a. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of
our audit and made due verification thereof;
b. in our opinion, proper books of account as required by law have been kept by the AB Bank Limited (Custodian Wing) so far as it appeared
from our examination of those books; and
c. the statement of financial position (balance sheet) and the statement of profit or loss and other comprehensive income (profit and loss
account) dealt with by the report are in agreement with the books of account and returns.

Dhaka, Signed for & on behalf of

27 April 2021 ACNABIN
Chartered Accountants

Md Moniruzzaman FCA
Partner
ICAB Enrolment No. # 787

212 | AB Bank | Annual Report 2020

AB Bank Limited
Custodian Wing
Balance Sheet Annexure H
As at 31 December 2020

31.12.2020 31.12.2019
Taka Taka
ASSETS
Non-Current Assets
Property, Plant and Equipment 52,528 -
Intangible Assets - -
Total Non Current Assets 52,528 -

Current Assets
Accounts Receivables 12,494,889 12,494,889
Total Current Assets 12,494,889 12,494,889
Total Assets 12,547,418 12,494,889

LIABILITIES

Non-Current Liabilities - -

Current Liabilities
Payable to AB Bank 5,405,334 5,352,806
Accounts Payable 7,092,083 7,092,083
Provision for Audit Fees 50,000 50,000
Total Current Liabilities 12,547,418 12,494,889
Total Liabilities 12,547,418 12,494,889

Profit and Loss Account Annexure H-1

For the year ended 31 December 2020
2020 2019
Taka Taka
Operating Income

Commission, exchange and brokerage 16,520 53,483

Total Operating Income 16,520 53,483

Operating Expenses

Rent, taxes and insurance 11,500 11,500

Auditor’s fees 57,500 77,500
Depreciation and repair of bank’s assets 8,471 5,275
Other expenses 182,162 138,920
Total operating expenses 259,633 233,195
Operating Profit (243,113) (179,712)

AB Bank | Annual Report 2020 | 213

 AB Bank Limited
Off-Shore Banking Unit (OBU)
Balance Sheet Annexure I
As at 31 December 2020

31.12.2020 31.12.2020 31.12.2019 31.12.2019

Taka USD Taka USD
PROPERTY AND ASSETS
Cash in hand - - - -
Balance with Other Banks and FIs’ 6,640,740 78,310 12,646,842 148,962
In Bangladesh 183,351 2,162 113,280 1,334
Outside Bangladesh 6,457,389 76,148 12,533,562 147,627

Money at call and on short notice (Placement) 964,604,550 11,375,000 849,000,000 10,000,000

Investment 1,637,923,118 19,315,041 1,639,846,896 19,315,040

Loans and Advances: 6,109,181,062 72,041,892 6,262,330,005 73,761,249

Loans & Advances - Regular 2,847,969,831 33,584,392 2,997,288,408 35,303,750
Loans & Advances - Classified 3,261,211,230 38,457,499 3,265,041,597 38,457,498

Premises and Fixed Assets (WDV) - - 556,063 6,550

Other Assets: 813,310 9,591 1,010,906 11,907

Accrued Interest 746,527 8,803 918,069 10,814
Pre-paid Advances 66,784 788 92,837 1,093

Total Assets 8,719,162,780 102,819,834 8,765,390,712 103,243,707

LIABILITIES AND CAPITAL

Liabilities

Borrowing from Bank & FIs’ 8,966,465,025 105,736,120 8,911,059,861 104,959,480

In Bangladesh 8,966,465,025 105,736,120 8,911,059,861 104,959,480
Outside Bangladesh - - - -

Deposits and Other Accounts 13,261,591 156,386 16,506,535 194,423

Demand Deposits 11,193,359 131,997 11,147,339 131,300
Demand Deposits - Others 2,068,233 24,389 5,359,196 63,124

Other Liabilities 190,709,001 2,248,916 190,932,993 2,248,916

Total Liabilities 9,170,435,617 108,141,422 9,118,499,389 107,402,820

Capital and Shareholders’ Equity

Profit/(Loss) (451,272,837) (5,321,589) (353,108,677) (4,159,113)
Total Shareholders’ Equity (451,272,837) (5,321,589) (353,108,677) (4,159,113)
Total Liabilities and Shareholders’ Equity 8,719,162,780 102,819,834 8,765,390,712 103,243,707

214 | AB Bank | Annual Report 2020

AB Bank Limited
Off-Shore Banking Unit (OBU)
Profit and Loss Account Annexure I-1
For the year ended 31 December 2020

2020 2020 2019 2019

Taka USD Taka USD

Interest income 158,003,805 1,861,820 203,880,011 2,413,269

Interest paid on deposits and borrowing etc. 253,296,559 2,984,692 348,688,583 4,127,326

Net Interest income (95,292,754) (1,122,872) (144,808,572) (1,714,057)

Commission, exchange and brokerage 125,968 1,484 (21,985) (260)

Total operating income (95,166,786) (1,121,387) (144,830,557) (1,714,317)

Salaries and allowances 2,808,354 33,092 4,970,127 58,830

Rent, taxes, insurance, electricity etc. 5,559 65 50,286 595

Postage, stamps, telecommunication etc. 41,396 488 61,760 731

Stationeries, printing, advertisement etc. 37,760 445 49,180 582

Depreciation and repair of bank’s assets 257,168 3,030 1,134,681 13,431

Other expenses 331,720 3,964 696,278 8,242

Total operating expenses 3,481,957 41,084 6,962,312 82,411

Operating Profit/(Loss) (98,648,743) (1,162,472) (151,792,869) (1,796,728)

AB Bank | Annual Report 2020 | 215

 Myanmar Representative Office
Statement of Receipts and Payments Annexure J
For the year ended 31 December 2020

Total Total
Receipts Payments
USD BDT USD BDT

Opening Balance 52,405 3,860,704 Bank Charges (Nostro & Others) 15 1,273

Received during the year 31,699 2,694,104 Miscel. Contract Service-Tea boys & Cleaners 34 2,886

Local Conveyance 67 5,686

Internet bill 216 18,328

Electricity Bill 9 764

Other Allowances-Officers 6,000 509,198

Stationery Others 43 3,650

Water and Sewerage 3 255

Other Audit fees 350 29,715

Mobile bill 11 933

Repair & Main. - Others 12 1,018

Other Fees and Taxes 338 28,665

Postage & Shipping- Domestic 2 170

Advance rent 10,500 890,402

Printing & Stationary 16 1,358

Printing- Security 3 255

Stamps Judicial non- Judicial 62 5,267

Closing Balance 66,423 5,054,986

Total 84,104 6,554,808 Closing Balance 84,104 6,554,808

216 | AB Bank | Annual Report 2020

Independent Auditor’s Report
To the Shareholders of AB Investment Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of AB Investment Limited (the “Company”), which comprise the statement of financial position as
on 31 December 2020, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of
cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other
explanatory information.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of AB Investment Limited as on
31 December 2020, and of its financial performance and its cash flows for the year then ended in accordance with International Financial
Reporting Standards (IFRSs).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company
in accordance with the ethical requirements that are relevant to our audit of the financial statements in Bangladesh, and we have fulfilled
our other ethical responsibilities in accordance with the requirements. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw attention to note # 6 of the financial statements, which describes the matter related to recognition of deferred tax assets. Our opinion
is not modified in respect of this matter.

Other Information

Management is responsible for the other information. The other information comprises all of the information included in the director’s reports,
but doesn’t include the financial statements and our auditor’s report thereon. The director’s reports are expected to be made available to us
after the date of this auditor’s report.

Our opinion on the financial statements does not cover other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes
available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated.

When we read the director’s reports, there is a material misstatement therein, we are required to communicate the matter to those charged
with governance.

Responsibilities of Management and Those Charged with Governance for the Financial Statements and Internal Controls
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with IFRSs, the Companies
Act 1994, the Securities and Exchange Rules 1987 and other applicable laws and regulations and for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate
the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by management.

AB Bank | Annual Report 2020 | 217

 • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Report on other Legal and Regulatory Requirements
We also report that the financial statements comply with the Companies Act 1994, the Securities and Exchange Rules 1987 and the other
applicable laws and regulations. We, as required by law, further report that:
a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the
purposes of our audit and made due verification thereof;
b) in our opinion, proper books of accounts as required by law have been kept by the Company so far as it appeared from our
examination of these books; and
c) the statements of financial position and statement of profit or loss and other comprehensive income dealt with by the report are in
agreement with the books of account and returns.

Dhaka,
22 March 2021 Signed for and on behalf of
ACNABIN
Chartered Accountants

Md Moniruzzaman FCA
Partner
ICAB Enrollment No. 787

218 | AB Bank | Annual Report 2020

AB Investment Limited
(A Subsidiary of AB Bank Limited)
Statement of Financial Position (Balance Sheet) Annexure K
As at 31 December 2020

31.12.2020 31.12.2019
Taka Taka
ASSETS

Non-current assets 568,369,010 547,526,339

Property, Plant and Equipment 216,694,350 547,526,339
Investment Property 312,241,848 -
Deferred Tax Assets 39,432,812 -

Current Assets 8,052,324,539 8,162,907,395

Investment in shares 551,741,963 736,423,365
Loans to clients 6,957,399,993 6,752,714,392
Advances, deposits and prepayments 556,400 656,400
Receivable from brokers & Others 236,523,208 299,723,086
Advance income tax 170,076,236 373,157,452
Cash and bank balances 136,026,739 232,700

TOTAL ASSETS 8,620,693,549 8,710,433,734

EQUITY AND LIABILITIES

Equity 6,743,523,992 6,747,365,720

Share capital 6,456,899,810 6,456,899,810
Retained earnings 286,624,182 290,465,910

Liabilities

Non-current liabilities 15,048,050 23,825,515

Provident fund, gratuity fund and recreation club fund 15,048,050 12,387,675
Deferred tax liability - 11,437,840

Current liabilities 1,862,121,507 1,939,242,499

Borrowing from banks 755,898,828 737,184,319
Liabilities for expenses 834,601 706,217
Provision for taxation 183,159,276 419,270,105
Provision for diminution value of investment 904,818,239 769,818,239
Payable to clients 17,410,563 12,180,799
Lease Liabilities - 82,820
Total liabilities 1,877,169,557 1,963,068,014

TOTAL EQUITY AND LIABILITIES 8,620,693,549 8,710,433,734

AB Bank | Annual Report 2020 | 219

 AB Investment Limited
(A Subsidiary of AB Bank Limited)
Statement of Profit or Loss and Other Comprehensive Income
(Profit and Loss Statement) Annexure K-1
For the year ended 31 December 2020

2020 2019
Taka Taka

Operating income 175,213,628 57,136,889

Interest income 59,982,280 138,400,793

Management fee 4,568,307 6,587,586

Transaction/settlement fee 36,857,934 31,835,085

Investment income 63,705,087 (131,590,144)

Other operating income 10,100,020 11,903,569

Operating expenses 75,431,121 48,061,007

Salary and allowances 17,182,331 15,286,399

Audit and consultancy fees 272,050 448,450

Administrative expenses 57,881,438 32,241,483

Financial expenses 95,302 84,675

Profit before provision and tax 99,782,507 9,075,882

Provision for diminution in value of investment 135,000,000 -

Net profit/(loss) before tax for the year (35,217,493) 9,075,882

Income tax expenses (31,375,765) 66,625,120

Current tax expenses 19,494,887 68,075,287

Deferred tax expenses (50,870,652) (1,450,167)

Net profit/(loss) after tax for the year (3,841,728) (57,549,238)

Other Comprehensive Income - -

Total Comprehensive Income (3,841,728) (57,549,238)

Earnings Per Share (EPS) (0.006) (0.089)

220 | AB Bank | Annual Report 2020

Independent Auditor’s Report
To the Shareholders of AB Securities Limited

Report on the Audit of the Financial Statements

Opinion
We have audited the financial statements of AB Securities Limited which comprise the Statement of Financial Position as at December 31,
2020 and the Statement of Profit or Loss and Other Comprehensive Income, Statement of Cash Flow and Statement of Changes in Equity for
the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company
as at December 31, 2020 and of its financial performance and its cash flows for the year then ended in accordance with
International Financial Reporting Standards (IFRSs).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further
described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the Company in accordance with the International Ethics Standards Board for Accountants Code
of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit
of the financial statements in Bangladesh, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the
current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.

Information Other than the Financial Statements and Auditor’s Report thereon
Management is responsible for the other information. The information comprises the information included in the annual report, but does not
include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether
the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to
be materially misstated. If, based on the work we have performed we conclude that there is a material misstatement of this other information;
we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with the Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs, and for such internal
control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with the governance are responsible for overseeing the company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by the management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based

AB Bank | Annual Report 2020 | 221

 on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.

Report on Other Legal and Regulatory Requirements

In accordance with the Companies Act 1994, we also report the following:
a) we have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose
of our audit and made due verification thereof;
b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appeared from our
examination of those books; and
c) the statement of financial position and statement of profit or loss and other comprehensive income dealt with by the report are in
agreement with the books of account.

Dated, Dhaka Haider Ahmed Khan FCA

March 31, 2021 Proprietor
Ahmed Khan & Co.
Chartered Accountants
Modhumita Building (1st Floor)
160 Motijheel C/A, Dhaka-1000, Bangladesh.

222 | AB Bank | Annual Report 2020

AB Securities Limited
Statement of Financial Position Annexure L
As at 31 December 2020

31.12.2020 31.12.2019
Taka Taka
I Sources of Fund
A) Shareholders’ Equity 514,345,408 510,030,076
Share Capital 272,041,880 272,041,880
Revaluation Reserve 85,986,590 85,986,590
Retained Earnings 156,316,938 152,001,606

B) Non-Current Liabilities 210,989,474 225,834,070

Liabilities for Other Finance 190,000,000 210,000,000
Provision for Gratuity 7,930,439 4,580,523
Provision for Provident Fund 11,602,235 11,253,547
Lease Liabilities 1,456,800 -

Total Source of Fund (A+B) 725,334,882 735,864,146

II Application of Fund
A) Non-Current Assets 16,406,708 9,982,783
Property, Plant & Equipment 14,427,041 7,717,212
Deferred Tax Assets 1,979,667 2,265,571

B) Investments 103,575,886 101,411,055

C) Current Assets 1,516,996,822 1,119,022,392

Cash and Cash Equivalents 456,742,020 81,598,769
Advance, Deposit & Prepayments 17,376,617 7,812,659
Advance Income Tax 43,083,808 94,941,313
Accounts Receivable 80,788,114 4,140,740
Margin Loan 919,006,263 930,528,911

D) Current Liabilities and Provisions 911,644,535 494,552,084

Accounts Payable 494,550,750 69,578,763
Bank Overdraft 167,548,561 174,502,576
Liabilities for Expense 6,548,349 902,620
Provision for Income Tax 46,292,599 98,150,033
Other Liabilities 191,418,093 151,418,093
Lease Liabilities 5,286,182 -

E) Net Current Assets (C-D) 605,352,287 624,470,308

F) Total Application of Fund (A+B+E) 725,334,882 735,864,146

AB Bank | Annual Report 2020 | 223

 AB Securities Limited
Statement of Profit or Loss and Other Comprehensive Income Annexure L-1
For the Year Ended December 31, 2020

2020 2019
Taka Taka

A) Operating Income 129,861,217 27,591,754

Brokerage Commission 91,988,986 38,821,911
Interest Income (3,571,253) 16,956,258
Investment Income 38,553,642 (29,937,890)
Other Operating Income 2,889,843 1,751,475

B) Operating & Other Expense 59,597,012 47,798,825

Operating Expenses 50,361,435 45,711,553
Other Financial Expenses 2,136,843 834,954
Depreciation on Property, Plant & Equipment 7,098,734 1,252,318

C) Profit before Provision (A-B) 70,264,205 (20,207,071)

D) Provision 40,000,000 (31,991,511)

For Diminution in Value of Investments - (31,991,511)
For Diminution in Value of Loan 40,000,000 -

E) Profit before Taxation (C-D) 30,264,205 11,784,440

F) Provision for Taxation 25,948,873 11,462,990

Current Tax 25,662,970 11,360,659
Deferred Tax 285,903 102,331

Net Profit After Taxation (E-F) 4,315,332 321,451

Earnings Per Share (EPS) 0.16 0.01

224 | AB Bank | Annual Report 2020

Independent Auditor’s Report
To the Shareholders of Cashlink Bangladesh Limited
Report on the Audit of the Financial Statements

Opinion
We have audited the Financial Statements of Cashlink Bangladesh Limited (“the Company”), which comprise the Statement of financial position as at
31 December 2020 and the Statement of Profit or Loss and Other Comprehensive Income, Statement of Changes in Equity and Statement of Cash
Flows for the year then ended and notes to the Financial Statements including a summary of significant accounting policies.
In our opinion, the accompanying Financial Statements give a true and fair view of the Financial Position of the Company as at 31 December 2020 and
of its financial performance and its Cash Flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), the
Companies Act 1994 and other applicable laws and regulations.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described
in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with
the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together with ethical requirement
that are relevant to our audit of the Financial Statements in Bangladesh, and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Financial Statements and Internal Control
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with IFRSs, the Companies Act 1994
and other applicable laws and regulations and for such internal control as management determines is necessary to enable the preparation of Financial
Statements that are free from material misstatement, whether due to fraud or error.
In preparing the Financial Statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether financial statements as a whole are free from material misstatement, whether due
to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these Financial Statements.
As part of an audit in accordance with ISAs, we have exercised professional judgment and maintained professional skepticism throughout the audit.
We also have:
- Identified and assessed the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtained audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control;
- Obtained an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control;
- Evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by
management;
- Concluded on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures
in the Financial Statements or, if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
We communicated with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identified during our audit.
Report on Other Legal and Regulatory Requirements
In accordance with the Companies Act 1994, we also report the following:
a) we have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our
audit and made due verification thereof;
b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appeared from our examination of
those books; and
c) the Statement of Financial Position and Statement of Profit or Loss and Other Comprehensive Income dealt with by the report are
in agreement with the books of account.

Dated, Dhaka SHAHA & CO.

04 April 2021 Chartered Accountants

AB Bank | Annual Report 2020 | 225

 Cashlink Bangladesh Limited
Statement of Financial Position Annexure M
As at 31 December 2020

31.12.2020 31.12.2019
Taka Taka

ASSETS
Non-Current Assets
Property, Plant and Equipment 3 3

Current Assets

Cash & Bank Balances 1,242,062 116,724

Investment in Fixed Deposits 44,118,875 41,861,572

Investment in Shares 1,000 1,000

Advance, Deposit & Prepayment 38,248,978 38,191,781

Other Receivable 2,030,210 2,223,037

85,641,125 82,394,114
Total Assets 85,641,128 82,394,117

EQUITY AND LIABILITIES

Equity

Share Capital 238,000,000 238,000,000

Share Money Deposit 4,200,000 4,200,000

Retained Earnings (165,295,612) (167,733,871)

Total Equity 76,904,388 74,466,129

Liabilities
Current Liabilities

Accrued Expenses 28,750 28,750

Provision for Taxation 8,707,990 7,899,238

Total Liabilities 8,736,740 7,927,988

Total Equity and Liabilities 85,641,128 82,394,117

Statement of Profit or Loss and Other Comprehensive Income Annexure M-1

For the year ended 31 December 2020
2020 2019
Taka Taka

Revenue - -
Less: General and Administration Expenses 419,155 453,452
Operating Profit/(Loss) (419,155) (453,452)
Add: Other Income 4,031,392 13,555,474
Profit Before Provision & Tax 3,612,237 13,102,022
Provision for taxation 1,173,977 365,225
Net Profit/(Loss) After Tax 2,438,260 12,736,797
Other Comprehensive Income - -
Total Comprehensive Income 2,438,260 12,736,797

Earnings Per Share (EPS) 0.10 0.54

226 | AB Bank | Annual Report 2020

Independent Auditor’s Report
To the Members of AB International Finance Limited
(incorporated in Hong Kong with limited liability)

Opinion
We have audited the financial statements of AB International Finance Limited (“the Company”) set out on pages 6 to 18, which comprise the
statement of financial position as at 31st December, 2020, and the statement of income and retained earnings and statement of cash flows for
the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the financial statements give a true and fair view of the financial position of the Company as at 31st December, 2020, and of
its financial performance and its cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standard for Private
Entities (“HKFRS for Private Entities”) issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”) and have been properly
prepared in compliance with the Hong Kong Companies Ordinance.

Basis for Opinion

We conducted our audit in accordance with Hong Kong Standards on Auditing (“HKSAs”) issued by the HKICPA. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We
are independent of the Company in accordance with the HKICPA’s Code of Ethics for Professional Accountants (“the Code”), and we have
fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.

Information Other than the Financial Statements and Auditor’s Report Thereon
The directors are responsible for the other information. The other information comprises the information included in the Annual Report, but
does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether
the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to
be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Directors and Those Charged with Governance for the Financial Statements
The directors are responsible for the preparation of the financial statements that give a true and fair view in accordance with HKFRS for Private
Entities issued by the HKICPA and the Hong Kong Companies Ordinance, and for such internal control as the directors determine is necessary
to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend
to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Our report is made solely to you, as a body, in
accordance with Section 405 of the Hong Kong Companies Ordinance, and for no other purpose. We do not assume responsibility towards or
accept liability to any other person for the contents of this report. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with HKSAs will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with HKSAs, we exercise professional judgment and maintain professional skepticism throughout the audit.

AB Bank | Annual Report 2020 | 227

 We also:-

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by the directors.

- Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

T. O. Yip & Co. Limited

Certified Public Accountants (Practising)
Hong Kong

Samuel Ming Sum Yip

Practising Certificate Number: P05704

228 | AB Bank | Annual Report 2020

AB International Finance Limited
Statement of Financial Position Annexure N
As at 31 December 2020

31.12.2020 31.12.2019
HK$ HK$
NON-CURRENT ASSETS
Property, plant and equipment 11,936 28,892

CURRENT ASSETS
Discounted bills receivable 102,262,201 100,962,271
Deposits, prepayments and other receivable 4,362,558 3,413,585
Tax refundable 734,081 -
Cash and bank balances 2,383,320 380,356
109,742,160 104,756,212
CURRENT LIABILITIES
Accrued liabilities and other payables 4,667,123 4,616,112
Deferred interest income 837,511 798,523
Provision for long service payments 350,117 463,002
Due to ultimate holding company 87,928,750 77,500,000
Tax payable - 2,105,818
93,783,501 85,483,455
NET CURRENT ASSETS 15,958,659 19,272,757
15,970,595 19,301,649
EQUITY
Share capital 1,000,000 1,000,000
Retained earnings 563,904 563,904
Proposed final dividend 6,844,732 10,175,786
Capital Reserve 7,561,960 7,561,960
15,970,595 19,301,649

Statement of Income and Retained Earnings Annexure N-1

For the year ended 31 December 2020
2020 2019
HK$ HK$

Interest income 3,602,766 4,566,221

Interest expenses (578,108) (532,105)
Net interest income 3,024,658 4,034,116
Other operating income 9,537,728 13,298,554
Total operating income 12,562,386 17,332,670

Staff costs (2,359,519) (2,338,431)

Depreciation (16,956) (19,370)
Reversal of/(further) provision for long service payments 112,885 (1,367)
Other operating expenses (2,395,361) (3,004,932)
Total operating expenses (4,658,951) (5,364,100)
Profit before taxation 7,903,435 11,968,570
Income tax (1,058,703) (1,792,784)
Profit for the year 6,844,732 10,175,786
Retained earnings at start of the year 563,904 563,904
Dividends (6,844,732) (10,175,786)
Retained earnings at the end of the year 563,904 563,904

AB Bank | Annual Report 2020 | 229

 Independent Auditors’ Report
To the Shareholders of Arab Bangladesh Bank Foundation

Opinion

We have audited the financial statements of Arab Bangladesh Bank Foundation which comprise The Statement of Financial Position as at
December 31, 2020, Statement of Profit or Loss and Statement of Receipts & Payments for the year then ended, and Notes to the Financial
Statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, The Statement of Financial Position of the
company as at December 31, 2020, Statement of Profit or Loss and Statement of Receipts & Payments for the year then ended in accordance
with International Financial Reporting Standards (IFRSs).

Basis for opinion

We conducted our audit in accordance with the International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditors’ responsibilities for the audit of the financial statements section of our report.
We are independent of the Fund in accordance with the ethical requirements that are relevant to our audit of the financial statements in
Bangladesh, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation of financial statements in accordance with International Financial Reporting Standards (IFRSs),
and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.

Auditors’ responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with ISA will always detect a material misstatement when it exists. Misstatement
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements.

Dhaka, Bangladesh Shishir Ranjan Bose, FCA

Dated: 19th May, 2021 Partner
S. R. BOSE & CO.
Chartered Accountants

230 | AB Bank | Annual Report 2020

Arab Bangladesh Bank Foundation (ABBF)
Statement of Financial Position Annexure O
As at 31 December 2020

31.12.2020 31.12.2019
Taka Taka
ASSETS
Non Current Assets 37,893,534 38,517,869
Property, Plant & Equipment 37,892,534 38,516,869
Investment in share 1,000 1,000

Current Assets 492,324,968 465,385,776

Loan to ABSL 190,000,000 210,000,000
Investment in FDR 105,915,271 99,807,518
Rent Receivable 75,338 37,669
Advance Tax 23,405,346 12,255,398
Cash and Cash equivalents 172,929,013 143,285,191

TOTAL ASSETS 530,218,502 503,903,645

EQUITY AND LIABILITIES

Shareholders’ Equity 499,290,836 481,360,333
Share Capital 20,000,000 20,000,000
Retained Earnings 479,290,836 461,360,333

Non-Current Liabilities
Unearned Income - 241,350
Current Liabilities 30,927,666 22,301,961
Provision for Income Tax 30,811,666 22,178,461
Provision for expenses 116,000 123,500

TOTAL EQUITY AND LIABILITIES 530,218,502 503,903,645

Statement of Profit or Loss and Other Comprehensive Income Annexure O-1

For the year ended 31 December 2020

2020 2019
Taka Taka
Income

Operating Income 29,376,192 32,592,809

Interest Income 28,472,140 31,688,757
Rental Income 904,052 904,052

Less : Operating & Other Expenses 2,812,484 1,281,338

Operating expenses 1,212,484 1,181,338
Other expenses 1,600,000 100,000

Profit before Tax 26,563,708 31,311,471

Less: Provision for Tax 8,633,205 10,959,015
Profit carried forward 17,930,503 20,352,456

AB Bank | Annual Report 2020 | 231

 Annexure P
Name of the Directors and entities in which had interest as on December 31, 2020
Sl. Name of Firms/Companies in which interested as proprietor/partner/
Name Status
No. director/managing agent/guarantor/employees etc.
1. Bangladesh International Arbitration Centre (BIAC), Chief Executive Officer
2. Finnova Technologies Limited, Chairman
3. Finaction Bangladesh Limited, Chairman
4. Cashlink Bangladesh Limited, Chairman, Nominated by AB Bank Limited
1 Mr. Muhammad A.(Rumee) Ali Chairman 5. AB International Finance Ltd, Hong Kong, Chairman, Nominated by AB Bank Limited
6. R & I Ventures Ltd., Managing Director
7. Eastland Insurance Company Limited, Independent Director
8. Finnovation Limited, Director
9. Veon Bangladesh Limited, Advisor
1. Hexagon Chemical Complex Limited, Chairman
2. Elite Paint & Chemical Ind. Limited, Chairman
3. Elite International Limited, Managing Director
4. FDN Energy Limited, Managing Director
2 Mr. Feroz Ahmed Director
5. Ahmed Securities Services Limited, Managing Director
6. Bangladesh General Insurance Company Limited, Shareholder
7. Holy Crescent Hospital, Shareholder
8. AB Bank Foundation, Chairman, Nominated by AB Bank Limited
1. AB Securities Limited, Director, Nominated by AB Bank Limited
3 Mr. Khairul Alam Choudhury Director 2. AB Investment Limited, Director, Nominated by AB Bank Limited
3. Cashlink Bangladesh Limited, Director, Nominated by AB Bank Limited
1. Elite Paint & Chemical Industries Limited, Director
2. Super Refinery (Pvt.) Limited, Director
3. Super Share & Securities Limited, Director
4. Elite Super Plastic Ind. (Pvt.) Limited, Director
5. Super Sea Fish (Pvt.) Limited, Director
4 Mr. Shajir Ahmed Director
6. Super Tel Limited, Director
7. Super Silica Bangladesh Limited, Director
8. Aurora Décor Limited, Director
9. Broast Foods Ind (Pvt) Limited, Director
10. Elite Foods Industries Limited, Director
1. AB Securities Limited, Director, Nominated by AB Bank Limited
2. AB Investment Limited, Director, Nominated by AB Bank Limited
Independent
5 Mr. Kaiser A. Chowdhury
*
3. Cashlink Bangladesh Limited, Director, Nominated by AB Bank Limited
Director
4. AB International Finance Limited, Hong Kong Independent Director, Nominated by AB Bank Limited

5. AB Bank Foundation, Member, Nominated by AB Bank Limited

Independent 1. AB Securities Limited, Director, Nominated by AB Bank Limited

6 Mr. Shafiqul Alam
Director 2. AB Investment Limited, Director, Nominated by AB Bank Limited
1. AB Investment Limited, Director, Nominated by AB Bank Limited
2. AB International Finance Limited, Hong Kong. Director, Nominated by AB Bank Limited
President &
7 Mr. Tarique Afzal Managing 3. Cashlink Bangladesh Limited, Director Nominated by AB Bank Limited
Director
4. AB Securities Limited, Director, Nominated by AB Bank Limited
5. AB Bank Foundation, Member, Nominated by AB Bank Limited
*Mr. Kaiser A. Chowdhury, Independent Director, resigned from the Board in the 702nd Board Meeting held on January 18, 2021.

232 | AB Bank | Annual Report 2020

CITIZEN CHARTER

AB Bank | Annual Report 2020 | 233

 CORPORATE SOCIAL RESPONSIBILITY

AB Bank’s CSR activities reflect the Bank’s mission, for the people of cold affected region in the country. In
vision and values. AB strongly believes that a strong order to be part of community development work, AB Bank
CSR engagement helps the organization to be socially also provided financial assistance to the urban slum and
accountable - to itself, its stakeholders, and to the public. the rural poor through BRAC during COVID-19, through
It is an essential element in fulfilling social commitment a campaign “Dakche Amar Desh”. The Bank has also
of all the business enterprises which contributes towards provided food support to poor people who have come under
the improvement of quality of the lives of people. AB major food safety related threat due to ongoing coronavirus
feels that by practicing corporate social responsibility, an situation.
organization can be conscious of the kind of impact it is
having on all aspects of society, including economic, social, Health: The Bank supported to provide medical facilities
and environmental. It is also one of the ways to contribute to the underprivileged so that they can live their lives and
to the society as a form of giving back to the community. function properly in the society. In line with that AB Bank
donated to Prime Minister’s Relief and Welfare Fund during
With the emergence of COVID-19, the importance of CSR COVID-19 pandemic. A 24 X 7 “Help –Line” was introduced
has become even more critical in helping the people and with specialist doctors for providing COVID related medical
the society at large. AB Bank stepped up and continued its emergency to the general people. The Bank also donated
focus more than ever before on CSR initiatives in the areas and aided “Fazle Rabbi Foundation & Research Center” to
of education, disaster management, health and sports. hold blood donation program where employees of the Bank
participated spontaneously. A fund was also set up for the
Education: Education is the best way to raise aspiration treatment of subordinated staffs of the Bank.
in the society and therefore, AB Bank redirected its CSR
focus more in the field by providing financial assistance to Sports Arena: AB always contributes in the development
a number of educational institutions to support the studies of sports, be it cricket, football or golf. The President Cup
of poor and meritorious students. AB Bank also provided Golf at Bhatiary, Chittagong is a trademark event sponsored
financial assistance for nursing training courses which by AB for the last 29 years. AB Bank was also involved
helped to build up the frontline health-workers during in sponsoring “Bangladesh Olympic Association” for
this COVID pandemic. The Bank also made significant Bangabandhu 9th Bangladesh Game. As a part of the Cricket
donations to the Society for the Welfare of Autistic Children frenzy nation AB has also made significant contribution in
(SWAC), an organization, directly works for specialized the development of School Cricket.
children in the field of education and training.
CSR activities of an organization have an impact on its
Disaster Management: Standing by the nation in any brand, its stakeholders, its employees and above all on its
national emergency is a call of duty and AB Bank as a customers. People loves to be associated in giving back
corporate citizen has always responded during such times. something to the society for its development and we at
This year for flood affected people AB made significant AB Bank pledge to all the people around us that we will
donations to Prime Minister’s relief fund. During the winter continue to strive to give back more to the society in the
AB distributed blankets through Prime Minister’s relief fund days to come.

Handing over blankets to the Honorable Prime Minister’s Relief & Welfare Fund as part of AB Bank’s CSR initiatives

234 | AB Bank | Annual Report 2020

CORPORATE SOCIAL RESPONSIBILITY

AB Bank organized an event with the Society for the Welfare of Autistic Children (SWAC) as part of celebration of the Birth
Centenary of the Father of the Nation Bangabandhu Sheikh Mujibur Rahman

AB Bank | Annual Report 2020 | 235

 CORPORATE SOCIAL RESPONSIBILITY

The Bank distributed food to different Orphanage during Ramadan in collaboration with Ministry of Social Welfare

236 | AB Bank | Annual Report 2020

GREEN BANKING ACTIVITIES

AB Bank has adopted comprehensive Green Banking Policy 10%, use email statements through which we save
in line with global norms and BRPD Circular no. 02 Dated an enormous quantity of paper, we call or email our
February 27, 2011 on “Policy Guidelines for Green Banking” customers for service reasons wherever possible rather
(as approved by Board of Director’s 488th Meeting held on than writing letters, low use of cheque book or paying-
19.12.2011). Subsequently, as per Bangladesh Bank SFD in book (withdrawal & payment through Card), installed
Circular No.02 dated December 01, 2016, the Bank has solar ATM’s (we already have 7 such ATMs), switch
formed the following (upon due approval from Board of off the ACs after 7 prn (or earlier specially when not
Director’s 624th meeting held on March 08, 2017): required), and maintaining the temperature of the AC
over 22° Celsius, switch off the lights of the common
• A separate Sustainable Finance Unit (SFU) having the
are after banking hour, switch off the computer/printer,
responsibility of designing, evaluating and administering
when not in use.
related Green Banking issues of the bank, comprising
with 8 (Eight) Senior and mid-level Officials from AB Green Monitor
Head Office.
To Ensure Optimum consumption of Electricity and Water,
• Sustainable Finance Committee (SFC) comprising the Head Office and all Branches of the Bank is set to control
senior Officials of the Bank. and reduce electricity consumption. To this effect,
Policy Formulation and Governance: One Officer for each ABBL Floor (at Head Office as well as
Incorporation of ESRM in CRM: at each Branch) has been nominated as ‘Green Monitor’ who
ensure that:
Eco friendly business activities and energy efficient
industries are given preference in financing by the Bank. • Air Cooler Temperature is maintained preferably at 24°
Environmental infrastructure such as wastewater treatment Celsius during office hours.
plant, bio-gas plant, bio-fertilizer plants are encouraged and • Air Coolers are put off after 7:00 p.m. and unnecessary
financed by the Bank. lights are put off when not required.
Besides, projects having such installations are encouraged. • There is no wastage of water (in kitchen, gardens, car
Bank has incorporated Environment, Social and Climate wash and rest rooms especially due to faulty tap).
Change Risk as part of the existing credit risk methodology • Switch off Air Coolers inside ATM Booths every night
and introduced ‘Environmental and Social Risk Assessment from 12:00 Midnight to 6:00 a.m.
(ESRA) - Generic Checklist’ to assess existing as well as
a prospective borrower (Credit Circular No.02/2017 on Earth Hour
November 19, 2017). Introduction of Earth Hour in every Branch and at Head Office
to save electricity and to promote the environmental cause
Before introducing ESRA, Bank have has been conducting
effectively, redundant lights and air coolers are switched off
Environmental Risk Rating (EnvRR) since July 2011.
during working hours.
In - House Environment Management: Climate Risk Fund: Bank to allocate Climate Risk Fund for
We have introduced and practicing Green Office Guide CSR activities for the people affected by climate change like
(Green Tips) to better manage In-House Environment. flood, severe winters which we have seen in last few years.
Some of the practices under Green Office Guide is as below: AB Bank has stood by the side of the people affected by the
above mentioned calamities caused due to climate change.
• Bank prepare & maintain inventory of the consumption
of water, paper, electricity , energy etc. in its offices and Green marketing: To promote Green marketing Bank is
branches in different places. arranging Training & Capacity Building among it’s employees.
• Save electricity and reduce water and paper
Online Banking :
consumption.
• Online communication is extensively used. • ABBL is a fully real-time online Bank and encourage customers
to use internet banking (AB Direct) for transactions including
• Energy efficient electronic equipment’s and energy
online bill payment, fund transfers etc.
saving LED Bulb as much as possible. Energy efficient
electronic equipment’s and energy saving LED bulb are • It gives more emphasis to make the easiest way to
being used as much as possible. We are aware that help environment by eliminating paper waste, saving
every ton of paper saves around 17 trees. Therefore gas and carbon emission, reducing printing costs and
Bank emphasize using recycled paper, print on reusable postage expenses.
sheets, print multiple pages on single sheet of paper,
double side and print on both sides, print only the
Disclosure and reporting of Green banking:
pages. that are required, increase margin width of Such disclosure has been done in our Annual Report, Bank’s
the documents, lower the default font (preferably to periodicals while our website also speaks of our Green
10 point) which would shrink the document by about Products & initiatives.

AB Bank | Annual Report 2020 | 237

 AB NETWORK

238 | AB Bank | Annual Report 2020

BRANCH LOCATION

DHAKA DIVISION
Austagram Islami Banking Branch Narayanganj
Mustari Bhaban, Jamtoli, Austagram Sadar 82, Kakrail, Ramna, Dhaka 109 B.B. Road Narayangonj
Kishoreganj

Banani Jatrabari Nawabpur Road

S. R. R Commercial Tower, House No. 50 Tony Tower 198-202, Nawabpur Road (Nawabpur Tower)
Road No. 11, Block-C, Banani, Dhaka 33 Shaheed Faruque Road Nawabpur, Dhaka 1100
Jatrabari, Dhaka

Bandura Jinjira New Elephant Road

Bandura Govt. Super Market (1st floor) Hazi Karim Market, Purba Aganagar, Gudara Novera Square
Hasnabad, Nawabgonj, Dhaka Ghat Road, Keranigonj, Dhaka House 05, Road 02
Dhanmondi, Dhaka 1205

Bashundhara Joypara North South Road

Green Coronet, Plot No. 07, Block-A Joypara, Dohar, Dhaka 9/1 North South Road (Bangshal)
Bashundhara Main Road, Dhaka 1229 Dhaka 1100

Bhairab Bazar Kakrail Pagla

248(W) Tin Potty, Bhairab Bazar, Bhairab 81, VIP Road, Dhaka 1000 Al-haj, Afsar Karim Bhaban
Kishoregonj DN Road, Pagla, Narayanganj

Bhulta Kalampur Paril

Haji Shopping Complex, Bhulta, Golakandail Kalampur, Dhamrai, Dhaka Paril Noadha, Boldhara, Singair, Manikganj
Rupgonj, Narayanganj

Board Bazar Kalatiya Principal

Ward No. 35, Gachha, Zone 02, Joydebpur Sufiya Zaman Complex, Kalatiya Bazar Road 30-31, Dilkusha C/A, Dhaka
Thana, Gazipur City Corporation, Gazipur Shamsherpur, Kalatiya, Keraniganj, Dhaka
1704
Chandra Kamrangirchar Progati Sharani
Alhaj Khabiruddin Super Market (1st floor) Al-Madina Super Market N.R. Tower, 72 Progati Sharani
Kaliakoir Bazar, 1201 West Rosulpur Block: J, Baridhara, Dhaka
Poura Shava, Kaliakair, Gazipur Kamrangirchar, Dhaka
Dhanmondi Karwan Bazar Rokeya Sharani
Plot: 45 (new) 286/B (old), Road: 16 (new) BSEC Bhaban 923, Shewrapara Rokeya Sharani
27 (old), Dhanmondi R/A, Dhaka 1209 102 Kazi Nazrul Islam Avenue, Dhaka 1215 Mirpur, Dhaka

Faridpur Madhabdi Savar

Faridpur A.R. City Center, 29 Haji Parkashipur, Madhabdi Bazar Palash Bari, Baipal, Savar, Dhaka
Shariatullah Bazar Road, Kotwali, Faridpur Narsingdi

Garib-E-Newaz Avenue Malibagh Shyamoli

House of veritas, 8 Garib-E-Newaz Avenue Advanced Melinda (Level-1), 72 Malibagh Shyamoli Square, Holding # 24/1 & 24/2
Sector -13, Uttara West, Dhaka Dhaka 1219 Khilzi Road, Ward#45, Mohammadpur
Dhaka 1207

Gulshan Mirpur Tangail

Ventura Avenue (1st & 2nd floor), Plot No. 5/A, 5/B, Darus Salam Main Road (1st floor) 702 Sabur Khan Tower, Kalibari Road
CWN(C)-8/B, Road No. 34, Gulshan Model Section 1, Mirpur, Dhaka Tangail Sadar, Tangail
Town, Dhaka 1212
Imamganj Mohakhali Tongi
40, Imamganj, Dhaka 1211 Pacific Centre (1st floor), 14 Mohakhali C/A SenaKalayan Commercial Complex
Dhaka 1212 Plot No- 9, Tongi, Gazipur
Islampur Motijheel Uttara
38-39, Islampur, Dhaka BSB Building, 08, DIT Avenue, Dhaka House 11, Road 14D, Sector 4
Uttara, Dhaka

MYMENSINGH DIVISION
Mymensingh Seed Store Bazar
52 Dr. Bipin Sen Road, Choto Bazar Al-Madina Shopping Complex, Seed Store
Kotowali, Mymensingh Bazar, Bhaluka, Mymensingh

AB Bank | Annual Report 2020 | 239

 BRANCH LOCATION

CHATTOGRAM DIVISION
Agrabad Chaturi Lohagara
BCIC Sadan Al Amin Super Market, Union: Chaturi, Police “Mostafa City”, Amirabad, Lohagara
26, Agrabad C/A, Chattogram Station: Anowara Chattogram Chattogram

Ashuganj Chakaria Momin Road

Kashem Plaza, Ashuganj Sadar M. Rahman Complex (1st Floor), Ward 4 Equity Central, 42-43, Momin Road, Jamal
Brahmanbaria Chakaria, Cox’s Bazar Khan, Chattogram

Anderkilla Cumilla Nazu Meah Hat

Universal Chamber (1st Floor) Moghultoli Super Market (1st floor) Burischar, Kaptai Road, Hathazari
7 Laldighi East, Anderkilla, Chattogram Moghultoli Road, Cumilla Chattogram 4337

Bahaddarhat Cox’s Bazar Pahartoli

4543, Bahaddarhat, Medina Hotel (1st floor) Digonta Complex (New Market), Bazar Abdur Rahim Tower (1st Floor)
Chandgaon, Chattogram Ghata, Cox’s Bazar Hold: 972/1043, D.T. Road, Ward: 098, A. K.
Khan Gate, North Pahartoli, Chattogram

Brahmanbaria Dewanhat Patherhat

1090/128, Court Road 315, Dewan Chamber, Dewanhat Khayez Shopping Center (2nd Floor)
Brahmanbaria Doublemuring, Chattogram Patherrhat, Noyapara, Chattogram

Banshkhali Export Processing Zone (EPZ) Port Connecting Road

Mohammed Meah Plaza Bay Shopping Centre, P.O. South EPZ 5, Port Connecting Road, Block G, Barapole
Ramdas Munshirhat, Kokdandi Halishahar, Chattogram 4223 Halishahar, Chattogram
Kalipur Union, Banshkhali, Chattogram
Boalkhali Feni Sandwip
TCCA Complex, Gomdandi (East), Boalkhali Haque Plaza (1st floor) Sandwip City Centre, Anam Nahar, Plot No:
Chattogram 193, SSK Road, Feni 22370 & 22371, Union: Haramiah, Sandwip
Chattogram

CDA Avenue Hathazari Sitakunda

BMA Bhaban (Ground Floor), 1367 CDA Hajee Siddique Market (1st floor), Hathazari Aziz Shopping Complex, Mohadevpur
Avenue, East Nasirabad, Chattogram Bus Stand, Hathazari, Chattogram Chattogram

Chawk Bazar Jubilee Road Station Road

Moti Tower, 67/68 College Road 175, Jubilee Road, Enayet Bazar Chattogram “Equity Anitri”, 32, H.S.S. Road, Kotwali
Chawkbazar, Chattogram Chattogram

Chandpur Khatunganj Teknaf

123/115 Kalibari Pouro New Market 395, Khatunganj, Chattogram Teknaf Main Road, Teknaf, Cox’s Bazar
Chandpur Sadar, Chandpur

Chaumuhani Khulshi
Holding # 886, Feni Road, Chaumuhani Khulshi House, Bungalow
Begumganj, Noakhali No. 2, B-2, Road No. 1, P.S.: Khulshi
Chattogram

KHULNA DIVISION
Benapole Jhikargacha Satkhira
Hotel Haque International Hanef Super Market, Holding No. 567, Word No. 884/810, Abul Kashem Road
607, Local Bus Stand, Benapole, Jashore 3, Jashore Benapole Road Satkhira
Jhikargacha Pourashava, Jashore

Jashore Khulna
Municipal Road, Kotwali, Jashore Mollick Shopping Complex Limited, 99
Jashore Road, Khulna

Jhenaidah Branch Kushtia

Pushpo prangon 12-14 Nawab Serajuddowla Road, Boro
249 Sher-E-Bangla Road Bazar, Kushtia
Jhenaidah Sadar Jhenaidah

240 | AB Bank | Annual Report 2020

BRANCH LOCATION

RAJSHAHI DIVISION
Bogura Naogaon Rajshahi
324, Kazi Nazrul Islam Sarak Mozaffer Hossain Marketing Complex, Main 102-103 Shaheb Bazar, Rajshahi
Jhawtala, Bogura Road, Naogaon
Chapai Nawabganj Pabna Sirajganj
16 Godagari Road A. R. Plaza, Abdul Hamid Road, Pabna Friends Plaza (1st Floor), S S Road, Ward 1
Chapai Nawabganj Pouroshova, Pabna Sirajganj

SYLHET DIVISION
Boroikandi Habiganj Tajpur
Rongdhonu Biponi Bitan, 1st Floor, Central Shaistanagar, Habiganj-Shaistaganj Main Haji Keramat Ali Super Market, Kadamtala
Bus Terminal Road, Verthokhola, Sylhet Road, Habiganj 3300 Tajpur, Sylhet
Chhatak Madhabpur VIP Road
Madaris Mansion, Bagbari, Chattak Munshi Tower (1st Floor), Ward 7 Surma Tower, V.I.P. Road, Taltala, P.S.
Sunamganj Madhabpur, Habiganj Kotwali, Sylhet
Dargahgate Moulvibazar
Raj Manjil, Dargahgate, Sylhet Shamsher Nagar Road, Choumuhana
Moulvibazar
Garden Tower Sreemongal
Bishwa Road, Shahjalal Uposhohor Point Aziz Super Market, Moulvibazar Road
Sylhet 3100 Sreemongal, Moulvibazar

RANGPUR DIVISION
Dinajpur Rangpur
189 Zabed Super Market 91-92, Central Road
Bahadur Bazar, Dinajpur Kotowali, Rangpur
Lalmonirhat Saidpur
5/32 S, Puran Bazar, Ward No. 05 24, Nur Plaza (1st & 2nd floor), Ward 12
Lalmonirhat Sadar, Lalmonirhat Shaheed Dr. Zikrul Haque Road, Saidpur
Nilphamari

BARISHAL DIVISION
Barishal
Monsur Mansion, 101 Sadar Road, Barishal

SUB BRANCH-DHAKA DIVISION

Gulshan Sub Branch
The Skymark (Level-2), 18 Gulshan Avenue, Gulshan 1, Dhaka

AB Bank | Annual Report 2020 | 241

 ATM BOOTH

SL ATM Locations Address Attached Branch

1 Bashundhara  Green Coronet Plot No-07, Block-A, Bashundhara Main Road Bashundhara
2 Rangpur Shop No:01 Muktijoddha Complex Bhaban, Station Road, Rangpur Rangpur
3 Kalurghat Global Shirts 49 (NP) Kalurghat Heavy Industrial Area, Chottogram Bahaddarhat
4 Mirpur-1 5-B Darus Salam Road, Section 01, Mirpur Dhaka Mirpur
5 Gulshan 155 Gulshan Avenue Road No 54 Dhaka Gulshan
6 Siddeswari Road ATM Total Camelia, 49, Siddeswari Road, Dhaka Malibag
7 New Senpara Road ATM House no- 5543, Road No-1, New Senpara Road, Grand Hotel More, Rangpur. Rangpur
8 Gulshan-1 ATM Shop No.15,50, South Gulshan, Dhaka Gulshan
9 Pran RFL ATM   Rangpur Metal Industries Ltd, Murapara, Rupgonj, Narayangonj  Madhabdi 
10 Mohakhali G-37, Wireless Gate, Dhaka Mohakhali
11 East Dargahgate 5222, East Dargahgate, Sylhet Dargahgate
12 Rayer Bazar 15, Sultangonj. Rayer Bazar, Dhaka Dhanmondi
13 Middle Badda Gha-131/1, Middle Badda, Dhaka Progoti Sharani
14 Hobigonj Branch ATM Sayestagonj Main Road Hobigonj Hobigonj
15 Banasree Main Road B/4,Block#B,Main Road,Banasree,Dhaka Malibag
16 Cox’s Bazar Digonta Complex (New Market), Bazar Ghata, Cox’s Bazar Cox’s Bazar
17 Asad Avenue Mohammadpur Housing Estate Plot No. 71/C, Block No. D, Mohammadpur, Dhaka Shyamoli
18 West Panthapath 89/2, West Panthapath, Dhaka 1215 (Beside Shomorita Hospital) Karwan Bazar
19 Satmosjid Road Block-E, Plot No. Gha/13, Mohammadpur Housing Estate, Mohammadpur, Dhaka Dhanmondi
20 Malibagh Chowdhury Para 577, Malibagh Chowdhury Para, Dhaka Malibag
719 (old) Satmasjid Road, Dhanmondi R/A, Dhaka
21 Training Academy New Elephant Road
85/A (New) M R Akhter Mukul Sarak, Dhanmondi R/A, Dhaka
22 Comilla 333, Jhawtala, Comilla Comilla
H - 23, Road - 10, Block – Kha, PC Culture Housing Society, Mohammadpur,
23 PC Culture Housing Society Shyamoli
Dhaka
24 NICVD NICVD, Sher-E-Bangla Nagar, Dhaka Shyamoli
25 Sadar Road 45, Sadar Road, Barisal Barisal
26 Doylar More Muncipal Holding No. 1952, Chawk Enayet, Naogaon  Naogaon
27 Lucas More 115 West Nakhalpara, Tejgaon, Dhaka Karwan Bazar
28 Lake Drive Road Plot No.19, Lake Drive Road, Sector -0 7 Uttara, Dhaka Gareeb-E-Newaz
29 Shahjahanpur 714/1, Uttar Shahjahanpur, Dhaka. Motijheel
30 South Basabo 445, South Bashbo, Sabujbagh, Dhaka Motijheel
31 Sony Cinema Crescent Homes, 150/1 Shah Ali bag Mirpur-1, Dhaka Mirpur
32 Tejture bazar 37 East Tejture Bazar, Farmgate, Dhaka 1215 Karwan Bazar
33 Nazim Uddin Road 1/2 Nazim Uddin Road, Dhaka Imamganj
34 Gopibagh 1/A Gopibagh, 1st Lane, Dhaka - 1203 Principal
35 Nikunja-2 Plot No.06, Road No.01, Nikunja-02, Dhaka. Progoti Sharani
36 Simanta Square Simanta Square Market Premises, Pilkhana, Dhaka. New Elephant Road
37 Banani House#50, Road#11, Block-C, Banani, Dhaka Banani
38 Adabar Bazar H-32/1/A North Adabar, Mohammadpur, Dhaka Shyamoli
39 Darus Salam Station 59/D, Darus Salam, Mirpur Road, Dhaka Shyamoli
KPBL Chayapath, House No.16/A/6, Ring Road, Near By Japan Garden City, Mo-
40 Ring Road Shyamoli
hammadpur, Dhaka
41 Gulshan Block B, H-50, Road -3 Avenue Road – 1, Niketan , Gulshan - 1 Mohakhali
42 Comilla SA Plot No. 634, Shashangacha, Badsha Miar Bazar, Kowtali, Comilla Comilla
43 Sandwip Sandwip City Centre, Haramia, Sandwip, District -  Chottogram. Sandwip

242 | AB Bank | Annual Report 2020

ATM BOOTH

SL ATM Locations Address Attached Branch

44 Jatrabari Holding No. 102/1, Sahid Faruk Road, South Jatrabari, Dhaka. Principal

45 Lalmatia House# B/20, Block- E, Zakir Hossain Road, Lalmatia, Dhaka Dhanmondi

46 Rupnagar House#57, Road#22, Rupnagar R/A, Mirpur, Dhaka Mirpur

47 Gulshan Link TA-137/1, Gulshan Link Road, Dhaka Gulshan

48 Rampura City Corporation Holding No. 1, East Rampura, Dhaka Kakrail

49 Tongi Sena Kalyan Commercial Complex, Plot No. 9/F, Tongi, Gazipur Tongi
Block-C, Plot No. 251/F, Road No. 22, at present Plot No. 60/A, Road No. 12/A,
50 Dhanmondi Takwa Masjid Dhanmondi
Dhanmondi R/A., Dhaka
51 Bandar ATM RSA Complex, South Halishahar, BS Plot No. 8098, Bandar, Chottogram C-EPZ
52 MDC Square ATM MDC Square, chawkbazar Chawk Bazar
53 Segunbagicha 42/1Kha, Segunbagicha, Ramna, Dhaka Kakrail
54 Kalachandpur Ka/12, Kalachandpur, Baridhara,  Gulshan, Dhaka Progoti Sharani
55 Amirabad Best Chowdhury Plaza, Amirabad, Lohagara, Chottogram Lohagara
56 Chaumuhani Feni Road, Chaumuhani, Noakhali Chaumuhani
57 Nawabgonj Kashimpur, Nawabganj, Bandura, (Nearer to Upazila Parisad), Dhaka Bandura
58 Notun Bazar 25, Kali Sankar Guha Road, Notun Bazar, Mymensingh Mymensingh
59 Uttara Plot No. 05, Rana Bhola Road, Sector-10,  Uttara, Dhaka Uttara
60 Brac Shoping Shop No-111, Brac Shopping Centre,  Faidabad, Azampur, Uttara, Dhaka Uttara
61 Navaron ATM Navaron Bazar, Sharsha , District - Jessore Benapole
62 Uttara#7 Plot-89, Road-28, Sector # 07, Uttara, Dhaka Uttara
Plot No. 17, Road No. 02, Block No. E, Section No. 12, Rupnagar R/A.,
63 Mirpur #12 Mirpur
Mirpur Housing Estate, Mirpur, Dhaka.
64 Jublee Road 175, Jubilee Road, Enayet Bazar, Chottogram Jublee Road
65 Mukda Para 111/C, North Mukda Para, Sabujbagh, Dhaka Malibag
66 Khilkhet Concord Lake city, Holding No. Kha-94/3, Khilkhet, Dhaka Progoti Sharani
67 Ashkuna Hazi Supper Market, Holding No. 2522, Ashkuna, Uttara, Dhaka. Uttara
68 Kochukhet 234/6, Kochukhet, Mirpur Rokeya Sharani
Shah Amanat Shopping Complex,  Plot No. 12/A,  Block-G, Road No#1, Len-2, Hali
69 PCR Road ATM PCR
Shahar Housing Estate, Holding No. 2113/A, Rampur, Chottogram
70 Polton Tower Shop No-11,Box Kalbart Road, 87 Purna Polton Road, Polton Tower, Polton, Dhaka Motijheel
71 Boro Moghbazar 625 Boro Moghbazar (Nayatola)(Opposite Red Cr. Society) Malibag
72 Kaderabad Housing Society 41/A, Kaderabad Housing Society, Katasur, Mohammadpur, Dhaka Dhanmondi
73 Lalbag 15, Lalbag Road, Lalbag Kella, Dhaka New Elephant Road
74 BRRI Krishi Gobesona Institute, 58/1 58/2 Laksmipura, Chandra , Gazipur Board Bazar
Kaliakair Super Market, Kaliakair Bazar Bus Stand, P.O:  Kaliakair Bazar
75 Kaliakair Super Market Chandra
P.S: Kaliakoir, Dist: Gazipur
Konabari Bus Stand, Gazipur, Plot No A-146 & A-147, Block Chemical, BSCIC,
76 Konabari Bus Stand Chandra
Konabari, Gazipur.
77 Al-Hasan Hotel 144, Sir Iqbal Raod, Khulna Khulna
78 United Tower 4 KDA, Khulna Khulna
79 VIP Tower VIP Tower, Kazir Dewri, Chottogram Jublee Road
80 Tajpur ATM Kazi Mansion, Dhaka-Sylhet High Way, Kadamtola, Po-Tajpur, Ps-Osmaninagar, Sylhet Tajpur
81 Grand Huq Tower 457-458, Grand Huq Tower, Mizan Road, Feni Feni
82 Nathullabad ATM Nathullabad Bus Stand, Barisal Barisal
83 Launch Ghat ATM Barishal Launch Ghat, Barisal Barisal
District Judge Court Bar Associatio (Bhaban No-1), Near Jessore Municipal Eid
84 Bar House ATM Jessore
Ghah Moidan, Mudjib Sarak, Jessore

AB Bank | Annual Report 2020 | 243

 ATM BOOTH

SL ATM Locations Address Attached Branch

85 Shib Bari ATM B7, Mojit Sharani, Shib Bari, Khulna Khulna
86 Ashuganj ATM SA Plot# 10&12, Main Road, Ashuganj City Ashuganj
87 Monipuripara ATM-2 Lion’s Shopping, Old Airport Road, Monipuripara, Dhaka Karwan Bazar
88 Gabtoli ATM 86, 1st Colony, Mazar Road, Near of Cement House. Gabtoli, Mirpur, Dhaka Shyamoli
89 Mojumdar Market ATM Mojumdar Merket, Sadar Hospital Road, Feni Feni
90 Pabna ATM AR Plaza, (Ground Floor) Abdul Hamid Road, Pabna Pabna
91 Zigatola ATM House-43/3/2, Zigatola, Dhanmondi, Dhaka New Elephant Road
92 Bokshi Bazar ATM Bokshi Bazar, City Corpration Market, Dhaka Medical College , Dhaka North South Road
93 Pilkhana ATM 57 Azimpur Pilkhana Road, Opposite Thana Education Office, Dhaka New Elephant Road
94 Subid Bazar ATM Indiana Height, Subid Bazar, Sylhet Dargahgate
95 Baridhara ATM-1 Baridhara Parishad Office, Baridhara DOHS, Road#5, Opposite to CSD, Dhaka Gulshan
96 Baridhara ATM-2 Baridhara Parishad Office, Baridhara DOHS, Road#5, Opposite to CSD Dhaka Gulshan
97 Gowsul Azam ATM Gowsul Azam Avenue, House#57, Sec#14, Uttara, Dhaka 1230 Gareeb-E-Newaz
98 Jhikargacha Branch ATM Hanif Super Market, Jhikargacha Jhikargacha
99 Foy’s Lake ATM Concord Amusement World, Foy’s Lake, Khulshi, Chottogram Khulshi
100 Lama Bazar ATM VIP Road, Lama Bazar, Sylhet VIP Road
101 Rina Monjil ATM 69, Central Jail Road, Jessore Jessore
102 Sitakunda ATM Aziz Shopping Complex, Sitakunda, Chottogram Sitakunda
103 Pagla Branch ATM DN Road Pagla, Fatullah, Narayangonj Pagla
104 Concord Arcadia ATM Dhanmondi (Concord Arcadia), Plot#122, Road#4, Dhanmondi, Dhaka. New Elephant Road
105 Khilgoan ATM 425/C, Khilgaon, Dhaka Malibag
106 Bijoy Sharoni ATM Bijoy Sharani Link Road, Tejgaon, Dhaka Karwan Bazar
107 Prince Plaza ATM 4/2, Prince Plaza, Sobhanbag, Mirpur Road, Dhaka Dhanmondi
108 Monipuripara ATM 20/1, Monipuripara (Sangshad Avenue) Dhaka Rokeya Sharani
109 Jhinaidah ATM Jhinaidah Road , M. A Razzaq Kushtia Kushtia
110 Saidabad ATM 17/A,North Saidabad Jatrabari Dhaka Principal
111 Patuatoli ATM 28, Patuatuli, Hazi Nur Mohammad Road - Old Town Dhaka Islampur
112 Zinda Bazar ATM Blue Water Shopping Complex, Zinda Bazaar, Sylhet VIP Road
113 Shi’ah Mosque ATM Shi’ah Mosque - House: 16, Road: 1, Mohammadpur, Dhaka-1207 Shyamoli
114 Shewrapara ATM 820, West Shewrapara, Rokeya Sharani Road, Dhaka Rokeya Sharani
115 Uttara-3 ATM House: 37, Road: 7, Sector: 3, Uttara, Dhaka-1230 Uttara
116 Farmgate ATM 71-75, Kazi Nazrul Islam Avenue, Farmgate, Dhaka 1215 Karwan Bazar
117 Dewanbazar ATM 82, Nawab Sirajuddowla Road, Chawkbazar, Chottogram Chawk Bazar
118 Madhabpur Branch ATM Munshi Tower (1st Floor), Ward 7, Madhabpur, Habiganj Madhabpur
119 Chapai Nawabganj ATM Chapai Nawabganj Branch Chapai Nawabganj Chapai Nawabganj
120 New Eskaton ATM 94, New Eskaton Road, Romna, Dhaka-1000 Karwan Bazar
121 Feni Branch ATM Haque Plaza(1st Floor), 193 SSK Road, Feni Feni
122 Royal More ATM Royal More, Khulna Khulna
123 Malibag Branch ATM Advanced Melinda (Level-1), 72 Malibag, Dhaka 1219 Malibag
124 Shyamoli Branch ATM Shymoli Square, 23/8 - B & C, Block: B Khilji Road, Dhaka-1207 Shyamoli
125 Naya Bazar ATM Nawab Yousuf Super Market, Naya Bazar - Old Town Dhaka Islampur
126 Chowhatta ATM Firoj Tower, Chawhatta Sylhet Dargahgate
127 Amtola ATM Amtola, Satkhira Sathkhira
128 Station Road ATM Kutum Bari, Station Road, Sreemongol Sreemongol
129 Wari ATM 216, Nawab Street, Wari Dhaka Nawabpur

244 | AB Bank | Annual Report 2020

ATM BOOTH

SL ATM Locations Address Attached Branch

130 Sabujbagh ATM 78(O),25(N),Sabujbagh, Biswa Road Dhaka Principal
131 Mirpur # 1 ATM House. 2, Road. 6, Block. F, Muktijoddah market- Mirpur, Dhaka Mirpur
132 Proshika More ATM Plot. 33, Lane. 1, Block. B, Section-6, Mirpur Dhaka Mirpur
133 Kushtia Branch ATM Serajuddowla Road , Al Amin Super Market, Kushtia Kushtia
134 Bonosree ATM House. 35, Road. 2, Block. C, Bonosree - Rampura Dhaka Progoti Sharani
135 Dinajpur Branch ATM 189 Zabed Super Market, Bahadur Bazar, Dinajpur Dinajpur
136 Mordern More ATM Modern More, Ganeshtala , Dinajpur Dinajpur
137 Arakan Road ATM 957/1553,Arakan Road, Bahadarhaat Bahaddarhat
138 Rangpur ATM 91-92, Central Road, Kotowali, Rangpur (Opposite of Rangpur Bangladesh Bank) Rangpur
139 Malibag ATM 480, D.I.T Road, Malibag Dhaka Kakrail
140 Tajmahal Rd. ATM 3/4,Block - C, Taj Mahal Road, Mohammadpur Dhaka 1207 Dhanmondi
141 Fakirapool ATM 1/A Fokirapool D.I.T Ext. Road Dhaka Motijheel
142 Shantinagar ATM Eastern Point, 8-9 Shantinagar Dhaka Kakrail
143 Boalkhali Branch ATM TCCA Complex, Gomdandi (East), Boalkhali, Chottogram 4366 Boalkhali
144 Khulshi ATM Khulshi House, Bungalow No. 2, B-2, Road 1, P.S.: Khulshi, Chottogram 4000 Khulshi
Rongdhonu Biponi Bitan, 1st Floor, Central Bus Terminal Road, Verthokhola
145 Boroikandi ATM Boroikandi
Sylhet 3100
146 Dhanmondi Branch ATM Plot: 45 (new) 286/B (old), Road: 16 (new) 27 (old) Dhanmondi R/A, Dhaka 1209 Dhanmondi
147 Imamgonj ATM 40, Imamganj, Dhaka 1211 Imamganj
148 Bandura Branch ATM Bandura Government Super Market, Nawabgonj, Dhaka Bandura
149 Teknaf Branch ATM Teknaf Main Road, Teknaf, Cox’s Bazar 4760 Teknaf
150 Sreemongol ATM Aziz Super Market , Moulvibazar Road, Sreemongol, Moulvibazar 3210 Sreemongol
151 Lohagora Branch ATM Sicho Shopping Complex, Padua, Lohagara, Chottogram 4397 Lohagara
152 Comilla ATM Mogholtooly Super Market, Mogholtooly Road, Comilla 3500 Comilla
153 Narayanganj Branch ATM 109, B.B Road Narayangonj Narayanganj
154 Mymensingh Branch ATM 52 Dr. Bipin Sen Road, Choto Bazar, Kotowali, Mymensingh 2201 Mymensingh
155 Pahartoli ATM 825, Zakir Hossain Road, Amader Bari, Chottogram Pahartoli
156 Moulovi Bazar Branch ATM Shamsher Nagar Road, Choumuhana, Moulovibazar 3200 Moulovi Bazar
157 Rajshahi Branch ATM 102-103 Shaheb Bazar, Rajshahi 6000 Rajshahi
158 Saidpur Branch ATM 24, Nur Plaza, Ward 12, Shaheed Dr. Zikrul Haque Road, Saidpur, Nilphamari 5310 Saidpur
159 Midtown Shopping Mall ATM Plot 22, Main Road 03, Section-7, Pallabi, Mirpur, Dhaka 1216 Mirpur
160 Jessore Branch ATM 38 M. K. Road, Jessore 7400 Jessore
161 Sirajganj Branch ATM Friends Plaza, S S Road, Ward 1, Sirajganj 6700 Sirajganj
162 C-EPZ Branch ATM Bay Shopping Centre, P.O: EPZ, South Halishahar P.S. Bandar, Chottogram 4100 C-EPZ
163 Chandpur ATM 123/115 Kalibari Pouro New Market, Chandpur Sadar, Chandpur 3600 Chandpur
164 Satkhira Branch ATM 884/810, Abul Kashem Road, Satkhira 7431 Sathkhira
165 Naogaon ATM Mozaffer Hossain Marketing Complex, Main Road, Naogaon 6500 Naogaon
166 Bhairab Bazar ATM 248(W) Tin Potty, Bhairab Bazar, Bhairab, Kishoregonj 2350 Bhairab Bazar
167 O.R. Nizam Road ATM 862/A, O.R. Nizam Road, Goal Pahar Circle, Chottogram 4000 CDA
168 Brahmanbaria ATM 1090/128, Court Road, Brahmanbaria 3400 Brahmanbaria
169 Benapole Branch ATM 607 Benapole, Local Bus Stand, Benapole, Jessore 7431 Benapole
170 Madhabdi Branch ATM Parkashipur, Madhabdi Bazar, Narsingdi 1604 Madhabdi
171 Nazumeah Hat Branch ATM Burischar, Kaptai Road, Hatazari, Chottogram 4330 Nazumeah Hat
172 Khulna ATM Mollick Shopping Complex Limited, 99 Khan A Sabur Road, Khulna 9100 Khulna
173 Patherhat Branch ATM Khayez Shopping Center, Patherhat, Noyapara, Chottogram Patherhat

AB Bank | Annual Report 2020 | 245

 ATM BOOTH

SL ATM Locations Address Attached Branch

174 Khatunganj ATM 395, Khatunganj, Chottogram 4000 Khatunganj
175 Agrabad Branch ATM BCIC Sadan, 26, Agrabad C/A, Chottogram 4100 Agrabad
176 Progoti Sharani Br ATM N.R. Tower, 72 Progoti Sharani, Block: J, Baridhara Dhaka Progoti Sharani
177 Bahaddarhat ATM Bismillah Complex, Arakan Road, Bahaddarhat, Chottogram 4323 Bahaddarhat
178 CDA Avenue ATM BMA Bhaban, 1367 CDA Avenue, East Nasirabad, Chottogram 4000 CDA
179 Mohakhali Branch ATM Pacific Centre, 14 Mohakhali C/A, Dhaka 1212 Mohakhali
180 Kawran Bazar ATM BSEC Bhaban, 102 Kazi Nazrul Islam Avenue, Dhaka 1215 Karwan Bazar
181 Kakrail Branch ATM 81, VIP Road, Kakrail, Dhaka -1000 Kakrail
182 Elephant Road ATM Novera Square, House 05, Road 02, Dhanmondi, Dhaka 1205 New Elephant Road
183 Uttara Branch ATM House 11, Road 14D, Sector 4, Uttara, Dhaka-1230 Uttara
184 Principal Branch ATM BCIC Bhaban,30-31, Dilkusha C/A, Dhaka 1000 Principal
185 Tangail ATM 702 Sabur Khan Tower, Kalibari Road, Tangail Sadar, Tangail 1900 Tangail
186 Chattak Branch ATM Madaris Mansion, Bagbari, Chattak, Sunamganj 08723 Chattak
187 Dargahgate ATM Raj Manjil, Dargahgate, Sylhet 3100 Dargahgate
188 Garden Tower ATM Bishwa Road, Shahjalal Uposhohor Point, Sylhet 3100 Garden Tower
Surma Tower, Plot - 6006 (old), 27640 (new), Ward 13, V.I.P. Road, Taltala
189 V.I.P Road Branch ATM VIP Road
P.S:. Kotwali, Sylhet City Corporation, Sylhet 4112
190 Kakrail (Islami Br.) ATM 82, V.I.P Road, Kakrail, Dhaka -1000 Kakrail
191 Bogra Branch ATM 324, Kazi Nazrul Islam Sarak, Jhawtala, Bogra 5800 Bogra
Ventura Avenue, Plot No. CWN(C)-8, Road No. 34
192 Gulshan Branch ATM Gulshan
Gulshan Model Town, Gulshan Dhaka
193 Joypara Branch ATM Joypara, Dohar, Dhaka-1300 Joypara
194 Board Bazar ATM Union: Gacha, PO: National University, PS: Gazipur Sadar, Gazipur-1704 Board Bazar
195 AGB Colony ATM Shop No-13, Baitul Aman Jame Mosjeed Market, AGB Colony, Dhaka Principal
196 Pirerbagh ATM 348/4, Pirerbagh, Mirpur, Dhaka Shyamoli
197 Jaleswaritola ATM Shahid Abdul Jabber Road, Jaleswaritola, Bogra. Bogra
198 Sataish Road ATM 10/11, Sataish Road, Gazipura, Gazipur. Board Bazar
199 Laila Tower ATM Laila Tower, 8, Gulshan Avenue, Dhaka Gulshan
200 Agrabad Branch ATM - 2 BCIC Sadan, 26, Agrabad C/A, Chottogram 4100 Agrabad
201 Police Plaza Concord ATM Shop No-105,  “ Police Plaza Concord”, Road No-2, Gulshan, Dhaka Gulshan
202 Gareeb-E-Newaz ATM Plot No-8, Gareeb-E-Newaz Avenue, Sector-13, Uttara, Dhaka Gareeb-E-Newaz
203 WW Tower ATM WW Tower, 68, Motijheel Commercial Area, Dhaka Principal
204 Sylhet Station Club ATM Sylhet Station Club Limited, Shahjalal Road, Sylhet VIP Road
205 Islamic University ATM Islamic University of Technology (IUT) Board Bazar, Gazipur Board Bazar
206 Kalampur ATM Kalampur Branch On-site ATM, Kalampur, Dhamrai, Dhaka Kalampur
207 Jurain ATM 302/1, Jurain, Dhaka North South Road
208 Chatterjee Lane ATM 6/3, Shashi Bhushan Chatterjee Lane, Gandaria, Dhaka Islampur
209 Banani House No-34,Road-10,Block-D Banani, Dhaka Banani
Bangladesh Eye Hospital ATM Booth at Bangladesh Eye Hospital Ltd. 78,
210 Eye Hospital ATM Dhanmondi
Sat Masjid Road Dhanmondi, Dhaka
211 Chaturi ATM Shop No-3, Alam Plaza, Chaturi, Anowara, Chottogram Chaturi
212 Paril ATM Paril Branch ATM Booth at Paril Bazar, Singair, Manikgonj Paril
Thengamara Medical
213 Thengamara Medical College (TMSS) ATM, Thengamara, Bogra Bogra
College ATM
214 Kaptai Link Road ATM Kaptai Link Road, Mohara, Chandgaon, Chottogram Nazumeah Hat
215 Lalmonirhat ATM 5/32-S, Puran Bazar, Lalmonirhat Lalmonirhat

246 | AB Bank | Annual Report 2020

ATM BOOTH

SL ATM Locations Address Attached Branch

216 Faridpur ATM Holding No-29, Faridpur AR City Center, Haji Shariatullah Bazar Road, Faridpur Faridpur
217 Raynagar ATM Raynagar, Sonapara (East Mirabazar), Sylhet Garden Tower
218 Board Bazar Branch - 2 ATM Union: Gacha, PO: National University, PS: Gazipur Sadar, Gazipur-1704 Board Bazar
219 CDA Avenue ATM - 2 BMA Bhaban, 1367 CDA Avenue, East Nasirabad, Chottogram 4000 CDA
220 C-EPZ Branch ATM -2 Bay Shopping Centre, P.O: EPZ, South Halishahar P.S. Bandar, Chottogram 4100 C-EPZ
221 Bhulta Branch ATM Haji Shopping Complex, Bhulta, Rupgonj, Narayanganj Bhulta
222 Station Road ATM Equity Anitri , 32, H.S.S Road, under AB Bank Station Road Branch, Chottogram Station Road
223 Ramna Bhaban ATM Shop No-13, Ramna Bhaban, Dhaka Motijheel
224 Mitford Road ATM Shop No-12, Red Crescent Market, 14/20, Mitford Road, Dhaka Imamganj
225 Seed Store Bazar ATM Al- Madina Shopping Complex, Seed Store Bazar, Bhaluka, Mymensing Bhaluka
226 Lalkhuti ATM House No-187, Road No-01, Lalkhuti, Rangpur Rangpur
227 Austagram Branch ATM Mustari Bhaban, Jamtoli, Austagram Sadar, Kishoreganj Austagram
228 Kaliganj ATM RFL Industrial Park, Mulagaon, Kaliganj, Gazipur. Madhabdi
229 Jhenaidah ATM Pospo Prangan, Holding No-249, Sher-e- Bangla Road, Jhenaidah. Jhenaidha
230 Pran RFL ATM - 2 Rangpur Metal Industries Ltd, Murapara, Rupgonj, Narayangonj.  Madhabdi 
231 Matikata ATM 134/3, Matikata, Dhaka Cantonment, Dhaka. Bashundhara
232 Moghbazar ATM Holding No-115, Shahid Tajuddin Ahmed Sharani, Moghbazar, Dhaka. Malibag
233 North South Road ATM 7/2, North South Road, Bangshal, Dhaka. North South Road
234 SSS Bhaban ATM Holding No-4475, SSS Bhaban, Mymensingh-Tangail Road, Tangail. Tangail
235 Kamrangir Char ATM Al-Madina Super Market, 1201 Rasulpur, Kamrangir Char, Dhaka. Kamrangir Char
236 Banshkhali ATM Mohammed Meah Plaza, Ramdas Munshir Hat,Banshkhali, Chottogram Bashkhali
237 Jinjira ATM Shop No-06, Nupur Market, Keraniganj, Jinjira, Dhaka. Jinjira
238 Signboard Bus Stand ATM 251, Signboard Bus Stand, Board Bazar, WwwwGazipur. Board Bazar
239 Nilphamari ATM Entrance of Uttara EPZ, Nilphamari, Saidpur. Saidpur
Ittadi Shopping Complex, Bandar Community Center, Mohalkhan Bazer
240 Chaturi-2 Chaturi
PO-Mohalkhan Bazer, PS-Karnafully, Chottogram
Plot No.239, Block-C, Road No.01, Koibulladam Residential  Area, World Bank
241 World Bank Biswa Colony Pahartoli
Biswa Colony, Chottogram
242 Umme Salma Tower Umme Salma Tower, Kaliakor, Gazipur Chandra
243 Central Road Baitus Sayed Super Market, 91- 92 Central Road, Rangpur. Rangpur
244 J.C Guha Road 15, J.C Guha Road, Nandankanon, Chottogram Anderkilla
245 Kalatiya Nur Pur, Chourangi Bridge, Kalatiya Bazar, Keraniganj, Dhaka Kalatiya
246 Jamal Khan Road 42, Jamal Khan Road, Chottogram Momin Road
247 Jigatola Main Road 21/3, Jigatola Main Road, Dhaka-1209 New Elephant Road
Collectorate School &
248 Sirajgonj Collectorate School & College, Sirajgonj Sirajganj
College
249 Green road 148, Green Road, Dhaka New Elephant Road
Fabian Group Corporate Office, Plot: B-18 (part), Block: A, BSCIC  Industrial Area,
250 BSCIC  Industrial Area PCR
Sagorika Road, Chattogram

Gulshan (Gulshan
251 Gulshan-Sub Branch Corporate Office, The Skymark, 18, Gulshan Avenue, Dhaka. Sub-Branch)

Gulshan (Gulshan
252 Gulshan-Sub Branch Corporate Office, The Skymark, 18, Gulshan Avenue, Dhaka. Sub-Branch)
253 Sonargoan ATM Pan Pacific Sonargaon Dhaka Hotel Lobby, ATM Karwan Bazar
Brahmanbaria Medical
254 Brahmanbaria Medical College Hospital Ltd , Ghatura, Brahmanbaria. Brahmanbaria
College Hospital

AB Bank | Annual Report 2020 | 247

 AGENT BANKING OUTLET

SL Agent Outlet Name Opening Date Address Contact No.

1 Mridha Traders March 11, 2018 Molla Market, Kartikpur Bazar, Dohar, Dhaka 01716102596

Kendriyo Jame Masjid Road, Holding no. 410,

2 H.R. Trade International March 12, 2018 01711934152
Konabari, Gazipur

3 ATM Enterprise May 15, 2018 Time Bazar, Shilkup, Banshkhali, Chittagong 01818441997
4 Bhai Bhai Traders June 4, 2018 Montola Bazar Station, Madhabpur, Habigonj 01713802341
5 M/S. Farid Iron & Steel Industries July 30, 2018 Ghoshail Bazar, Kuthuri, Nawabgonj, Dhaka. 01715004742
6 M/S. Purbachal Traders August 27, 2018 Amtoli Bazar, B. Baria 01714312871
7 M/S L R Traders August 30, 2018 Ukhyia, Cox’s Bazar 01824923268
8 Zahir Enterprise September 17, 2018 Madhabdi, Choysuti, kuliarchar, kishoregonj 01783362992
9 Labony Decorator September 24, 2018 Sadapur Bazar, Nawabgonj, Dhaka 01943998390
10 M/S Khan Construction September 27, 2018 Islampur Bazar, Bijoynagar, B.Baria 01711667863
Plot-33, lane-01, Block-B, Sec-06, Proshika Mour,
11 Parmisha Traders October 25, 2018 01675561372
Mirpur-1216
12 M/S Arafat Enterprise November 19, 2018 Gudam Quarter Road, Feni 01712035096
13 Shotorupa Enterprise December 5, 2018 Pouro Super Market, Kazipur, Sirajgonj 01716065548
14 M/S Dealoara Begum January 3, 2021 Chatihati Bazar, Kalihati, Tangail 01711316999
Oyon Thai Aluminium &
15 December 11, 2018 South Jamsha Bazar, Singair, Manikgonj 01714238493
Glass House
16 M/S. Tangail Traders December 13, 2018 Adabari Bazar, Mirzapur, Tangail 01718691538
17 Nishat Commercial Center December 20, 2018 Chakhar Bazar, Banaripara, Barisal 01721676711
18 Akota Traders December 24, 2018 Shohor Molok Road, Bolir Hat, Khaza Road, Chittagong 01754336633
19 Shahi Shipping & Trading January 30, 2019 Uttar Sonaichari, Kumira, Sitkunda, Chittagong 01811466703
20 Lalu Traders February 27, 2019 Kamalpur Bazar, Dolatpur Bazar, Kushtia 01711396275
21 Jewel Digital Studio & Telecom March 4, 2019 Shyamol Bazar, Doara Bazar, Sunamganj 01714726020
22 M/S. Alhaz Ibrahim Ali & Sons March 12, 2019 Dohalia Bazar, Doara Bazar, Sunamganj 01711382278
23 Srot Enterprise March 13, 2019 Rajnagar, College Point, Moulavibazar 01715405104
24 Friends Enterprise March 21, 2019 Shaheed Moshiur Rahman Sarak, Biman Mor, Jessore 01716698192
Bondhumahal Sarbik Gram
25 March 21, 2019 Dakuriya, Monirampur, Jessore 01740965249
Unnayan Somobay Samity Ltd.
26 Zara & Zaif Dairy Farm April 24, 2019 Paris Road Mor, Pollobi, Mirpur, Dhaka 01980237695
27 Rudra Enterprise April 25, 2019 Nandanpur, Halima Nagar 01755240500
28 Super Speed Shipping Lines April 30, 2019 Megula Bazar, Dohar, Dhaka 01919106535
29 Afia Medical House May 6, 2019 Harinarayan Bazar Hall Mor, Islamic University, Kushtia 01716513190
30 M/S. Shan-A Garangia Enterprise June 27, 2019 CNG Station, Matarbari, Moheshkhali, Cox’s Bazar 01740802699
31 Syma Enterprize January 3, 2021 Parulia, Debhata, Satkhira 01615141000
32 Prochesta Enterprise July 4, 2019 Dogachi Bazar, Pabna 01713635653
33 M/S Shankar Mistanna Vander July 8, 2019 Sreepur Bazar, Sreepur, Gazipur 01724020491
34 ICC Communication July 10, 2019 Vatoi Bazar, Shoilkupa, Jhinaidah 01974010610
35 Swapno Traders July 14, 2019 Daudpur Bazar, Daudpur, Nawabganj, Dhaka 01840000193
36 A. M Corpotion July 18, 2018 Masud Tower, Shikaripara Bazar, Nawabganj, Dhaka 01739262456
37 A.k. Enterprise July 29, 2019 Baliakandi, Rajbari 01717251969
38 Ayan Trading August 1, 2019 Bakra Bazar, Jhikargacha 01863228502
39 Erfan Pharmacy August 4, 2019 Kamalapur Bazar, Kushtia 01712141479

248 | AB Bank | Annual Report 2020

AGENT BANKING OUTLET

SL Agent Outlet Name Opening Date Address Contact No.

40 Vai Bon Garments & Bastralay August 22, 2019 Rajganj,Manirampur, Jessore 01911296514

01771836575
41 Aspirant Development Ltd. September 9, 2019 Shibganj, Chapai Nawabganj
01737226012

42 Jony Enterprise September 19, 2019 Debpara Bazar, Nabiganj, Habiganj 01715136884
43 Tamanna Enterprise September 25, 2019 Kalinagar English Mor, Chapai Nawabganj 01761584956
44 Shamlapur Ideal Academy September 29, 2019 Shymlapur, Savar, Dhaka 01819743595
45 M/S Allahar Dan Poultry October 2, 2019 Vhaluka Chandpur, Satkhira 01725457227
46 Genuine Auto November 18, 2019 Maizdi Court, Sadar, Noakhali 01714137244
47 Lopa Enterprise November 20, 2019 Zalmolia Bazar, Puthia, Rajshahi 01723390307
48 MM Enterprise November 27, 2019 Hospital Road, Bheramara, Kushtia 01612301516
49 S B S Enterprise November 27, 2019 Baliashisha, Chithalia, Mirpur, Kushtia 01765505030
50 Maisha Mahi Enterprise November 28, 2019 Hatosh Haripur, Sadar, Kushtia 01743191147
51 Araf Travels & Tours December 5, 2019 Choumuhani Bazar, Saidpur, Nilphamari 01912818949
52 Nayan Moni Enterprise December 9, 2019 Noudapara Bazar, Sadar, Rajshahi 01783555454
53 Mim Traders December 10, 2019 Alalpur Bazar, Nawabganj, Dhaka 01813562914
54 Ocean Agro December 12, 2019 Char Haziganj, Charvadrasan, Faridpur 01715259498
55 Tasmim Air International December 12, 2019 Tambulkhana, Sadar, Faridpur 01713567896
1521, S.k Saha Tower, Chouddogram Road, Bypasss,
Laksham, Cumilla
56 Shamim Trade January 8, 2020 01813727072
House-0397, Vill- Godomara, Raster Purba Pash,
P.o+P.s- Laksham
57 Euro Ashiano Restura January 20, 2020 Nawabganj Bazar, Nawabganj, Dhaka 01711567520
01818077151/
58 Abedin Electronics & Motors February 19, 2020 Ismail Center, Nhilla Bazar, Teknaf, Cox’s Bazar
01616445454
59 Mahin Enterprise February 24, 2020 Bogla Bazar, Doara Bazar, Sunamganj 01749755553
60 M/S. Tama Enterprise February 27, 2020 Field-Er-Hat, Moharajpur, Chapainawabganj 01743975975
61 M/S Rony Trading Company September 07, 2020 Ward-05, Girls School Road, Shokhipur, Sador, Tangail 01761597697
62 Purbasha Trading October 09, 2020 Boroichara, Joynagar, Ishwardi, Pabna 01711251011
63 Vai Vai Traders September 30, 2020 Gorpara Bazar, Sharsha, Jessore 01735659639
64 Babu Electronic October 08, 2020 Zajor, National University, Gazipur 01728305658
65 Talukder Enterprise October 12, 2020 Kakoirtola Bazar, Shahrasti, Chandpur 01823208391
66 Yuan Impex- Mirpur 11, Dhaka October 24, 2020 11-D, Main Road- 3, Mirpur 11, Dhaka 01622244466
67 M/S Rony Trading Company November 30, 2020 Jashihati Bazar, Fulki, Basail, Tangail 01761597697

Court Horogram Bazar, Rajpara, Rajshahi City

68 S. H Enterprise December 10, 2020 01718017767
Corporation, Rajshahi.

Khan Enterprise-Philipnagar,
69 December 14, 2020 Philipnagar Bazar, Philipnagar, Daulatpur, Kushtia 01711393387
Kushtia

70 New Bismillah Electric House December 15, 2020 Bhairabgonj Bazar, Kalapur, Sreemangal, Moulvi Bazar 01863919191

Alauddin Nagar Bazar, Nondolalpur, Kumarkhali,

71 Taslima Enterprise December 17, 2020 01716779531
Kushtia, Khulna

72 Mayer Doa Enterprise December 17, 2020 Jhaudia Bazar, Jhaudia, Kushtia Sadar, Kushtia 01741243243
73 M/S Khaleda Agro Farm December 21, 2020 2 No Word, Noyani Bazar, Sherpur Sadar, Sherpur 01732357294
74 M/S. S. Alam Traders December 21, 2020 Hazratpur Bazar, Hazratpur, Keraniganj, Dhaka. 01911105131

AB Bank | Annual Report 2020 | 249

 AGENT BANKING OUTLET

SL Agent Outlet Name Opening Date Address Contact No.

75 M/S. S R M Corporation December 23, 2020 Badhal Bazar, Kachua, Bagerhat. 01711649753
76 M/S. Bebortan Store December 23, 2020 Betua Bazar, Boheratoil, Shakhipur, Tangail 01711649753
77 M/S. S R M Corporation December 24, 2020 Indurkani Bazar, Pattashi, Indurkani, Pirojpur 01711649753
78 M/S. S R M Corporation December 27, 2020 Sreeramkathi Bazar, Nazipur, Pirojpur 01819489640
79 M/S. Bebortan Store December 28, 2020 Hoteya Bazar, Hatibandha, Shakhipur, Tangail 01819489640
80 M/S. Bebortan Store December 28, 2020 Hamidpur Bazar, Kakrajan, Shakhipur, Tangail. 01819489640

Muktihoddha Complex, Dakshin Bazar, Kulaura,

81 Amar Kulaura December 30, 2020 01712099774
Moulvi Bazar, Sylhet

82 M/S. Mahfuz Enterprise December 30, 2020 Barpa Bazar, Rupshi, Tarabo, Rupganj, Narayanganj 01735936394
83 A. H. Traders-NSTU March 22, 2021 Beside Nstu, Sadar, Noakhali 01714137244
84 Star Fabrics March 22, 2021 Al Marzan Shopping Complex, Zinda Bazar, Sylhet 01711813758
85 Sama Enterprise March 22, 2021 Kumargaon, Jalalabad, Sylhet 01760400040
86 M/S. M. G. Traders March 23, 2021 Tilokpur, Akkelpur, Joypurhat 01712887289
87 Sunam Enterprise March 23, 2021 Lamakazi, Bishwanath, Sunamganj 01716218013
88 Sunam Enterprise March 23, 2021 Jawa Bazar, Sunamganj 01716218013
89 Aklam Store March 24, 2021 Mominkhola, South Surma, Sylhet 01745402328
90 M/S Bhai Bhai Store March 24, 2021 Boroshala, Sadar, Sylhet 01711478122
91 Feroza Enterprise March 31, 2021 Kasturi Bazar, Kalihati, Tangail 01866141375
92 Shobuz Shohag Telecom March 28, 2021 Gorar Para, Kushtia 01777929299
93 New Jubel Pagri March 23, 2021 Modina Market, Sylhet 01917710888
94 M/S. Azad Electronics March 29, 2021 Bhanughat Bazar, Moulvi Bazar 01711899641
95 M/S. Adnan Traders March 31, 2021 Poolhat, Dailer Mor, Dinajpur 01761523098
96 S. H Enterprise March 31, 2021 Binodpur, Rajshahi 01718017767
97 M/S. S R M Corporation March 29, 2021 Chitolmari Bazar, Pirojpur 01711649753
98 Yuan Impex March 29, 2021 Near Girls School, Sadar, Shariatpur 01622244466
99 M/S. S R M Corporation March 29, 2021 Chowrasta Bazar, Pirojpur 01711649753

Notun Jibon Chandpur Community

100 March 31, 2021 Raldiya Bazar, Chandpur 01712099774
Society

101 M/S. Rana Enterprise March 31, 2021 Swarupkati Bazar, Nesarbad, Pirojpur 01917710888

250 | AB Bank | Annual Report 2020

 Corporate Head Office, “The Skymark”, 18 Gulshan Avenue, Gulshan – 1, Dhaka-1212.

PROXY FORM

I/We.............................................................................................. of ..................................................................................................

................................................................................................................................ being a Member of AB Bank Limited and entitled to

vote, do hereby appoint Mr./Mrs. ................................................................................................. of ....................................................

.............................................................................................................................................................................. as my/our proxy to

attend and vote on my/our behalf at the 39th Annual General Meeting of the Company to be held on 10th June, 2021 (Thursday) at. 4:00 p.m.

through Digital Platform.

Singed this ................... day of .......................... (Month) 2021.

Signature of Shareholder(s) Signature of PROXY

Affix Revenue
Stamp Tk. 20.00

Folio No. -
Or
BO ID No.

No. of Shares held on Record date (19th May, 2021)…………………………………

Note: A Member entitled to attend and vote the Annual General Meeting may appoint a proxy to attend and vote on his/her behalf. The
scanned copy of “Proxy Form”, duly signed and affixed with BDT 20 revenue stamp must be sent through email to AB Bank Company Secretary
at [email protected] no later than 72 hours before commencement of the AGM, Signature of the Shareholder/s should agree with the specimen
signature registered with the Company Register Office / Depository Participant(s).

AB Bank | Annual Report 2020 | 251