Home ›› 26 Apr 2023 ›› Stock
Community Bank Bangladesh, owned by the Bangladesh Police Welfare Trust, saw its net profit increased four times in 2022 over the previous year.
The interest income of the lender was the principal reason behind the increase in its net profit, with a 50 per cent surge in earnings from this segment.
In November 2018, Community Bank Bangladesh Limited received approval as the 59th scheduled bank in the
country.
The bank’s financial report for 2022 showed that the its profit after tax in 2022 rose to Tk 64.54 crore from Tk 11.91 crore in the previous year.
The bank logged an interest income of Tk 480.84 crore last year against Tk 319.65 crore in the previous year.
This hefty surge in its revenue from this segment basically helped the bank register a significant profit rise.
Besides, the lender’s earnings against its investment in 2022 jumped by 34 per cent to Tk 83.60 crore in 2022 than Tk 62.19 crore in 2021.
Out of investments, the bank received interest income of Tk 2.11 crore from subordinated bonds, which was Tk 1.40 crore in the previous year.
Moreover, it received an interest capital worth Tk 11.93 crore from the investment in perpetual bond, which in 2021 was Tk 5.37 crore.
As per law, the profits of the bank will go to the Police Welfare Trust.
In 2022, the bank also made a profit of Tk 2.06 crore by putting investment in sukuk bonds.
The bank’s total loan disbursement in the cash credit sector stood at Tk 5271.83 crore in 2022, which was Tk 4318.82 crore in the previous year.
Of the loans given, the bank disbursed Tk 915.72 crore to 14 clients and groups of companies, according to its financial da-ta.
Among major borrowers, ACI Advanced Chemical Industries received Tk 66.29 crore in loans from the bank, while Ananta Apparels received credit worth Tk 60.74 crore.
Besides, Energypac Engineering Limited received the highest loan of Tk 129.54 crore in the funded and non-funded sectors from the bank.
The company was given a credit of Tk 121.58 crore in 2021 by the lender.
Rang, DBL, and Kader Group are among the top borrowers of the bank.
Interestingly, the bank has no bad loans till 2021.
In 2022, the amount of bad loans stood at Tk 1.91 crore in 2022.
Till 2022, the bank’s substandard loan was only Tk 4.21 crore, while the outlay of the doubtful loan was Tk 1.59 crore.
According to the its website, Community Bank was founded on three guiding principles— trust, security, and progress.
As a modern, safe, and trusted financial institution, the bank is committed to providing community banking services among the marginalised people.
The bank prioritises disbursing low-interest loans to police officers, providing financial assistance to injured officers, and providing financial assistance for medical and educational purposes.
The Bangladesh Police in 2016 presented a proposal to Prime Minister Sheikh Hasina for the establishment of a bank.
In response, the prime minister said the government had no objections if they could collect Tk 400 crore in accordance with the central bank’s guidelines.
Later, the Police Welfare Trust Board began collecting capital from police officers in 2017, and finally it became successful to comply with the central bank’s guidelines.
