State Bank of India the only branch of the bank operating in Bangladesh since 5 May 1975. State Bank of India was incorporated in India under State Bank of India Act 1955. As on 31 December 2000, paid up/statutory capital of the bank's Dhaka unit (hereinafter referred to as the bank) was Tk 550.7 million. The bank provides all kinds of commercial banking services.
Total deposits accumulated at the bank amounted to Tk 1,067.3 million in December 2000 and the deposit-mix included term deposits, savings deposits, bearer certificate of deposits, bills payable, current deposits and other contingency accounts. The rates of interest offered by the bank on its different types of deposits varied between 5.5% and 9.25%. During 2000, it borrowed Tk 59.28 million from other banks and financial institutions in Bangladesh. Total loans and advances made by the bank that year were Tk 712.9 million. The bank offers loans and advances mainly to large, medium and small-scale industrial units, trade and commerce, and transport and in the form of financing imports, exports and working capital, cash credit, and overdrafts. Interest rates charged by the bank on its lending varied between 10% and 16.5%. In 2000, the bank had a classified loan of Tk 24 million (3,37% of total loans). The classified loans required the bank to keep 100% provision from its profit, which degraded the quality of its lending assets as well as the level of profitability.
The investments of the bank other than loans and advances stood at Tk 189.78 million at the end of December 2000. The investments were in government treasury bills of various maturity Tk 139.51 million, T&T treasury bonds Tk 50 million, and prize bonds Tk 2.70 million. The bank earned investment incomes of Tk 13.39 million from these assets in 2000. That year the foreign exchange business handled by the bank amounted to Tk 5,197, which comprised export servicing Tk 2,021 million, import financing Tk 2,312 million, and remittance facilities Tk 864 million. It has correspondent relationships with 85 foreign banks/exchange houses and other financial institutions in different countries. In December 2000, the value of the assets of the bank excluding off-balance-sheet items stood at Tk 1,829.6 million and the off-balance-sheet items accounted for Tk 4,740.6 million. Net profits of the bank after adjustment of all provision at the end of the business year 2000 stood at Tk 120.7 million.
In 2001, the bank had 41 employees and its management
is headed by a chief executive officer appointed by its parent office.
[S M Mahfuzur Rahman]