Trust Bank Limited a domestic private sector commercial bank in Bangladesh, incorporated in June 1999 as a public limited company under the companies act 1994. It started business operations in July 1999 with an authorised capital of Tk 1,000 million divided into 1 million ordinary shares of Tk 1,000 each. The bank's initial paid up capital was Tk 200 million, 50% of which are held by Army Welfare Trust designated as group-A shareholder. The remaining 50% are held by the public designated as group-B shareholders.
The bank conducts all types of commercial banking activity. On 31 December 2000, total deposits of the bank amounted to Tk 1,111.2 million and the deposit-mix comprised savings deposit, current deposit and other accounts and fixed deposit. The bank introduced 3 deposit schemes namely Trust Target, Trust Double Deposit Scheme, and Trust Deposit Insurance Scheme. Total loans and advances of the bank stood at Tk 525.7 million in 2000. Trade finance was the main focus of lending. It had no classified loan up to the end of 2000. The foreign exchange business of the bank during the two years of its operations remained small and the estimated volume in 2000 was represented by imports financing Tk 150 million and foreign remittance Tk 150 million. The bank established correspondent relationships with 10 foreign banks.
In 2000, the value of all assets of the bank stood at Tk 1,949.3 million and the asset-mix included cash in hand, balance with other banks and financial institutions, money at call and short notice, investment in government treasury bills, loans and advances, premises and fixed assets and other assets. Assets sprung from off-balance-sheet items were valued at Tk 254.3 million. The total operating income of the bank in 2000 was Tk 107.7 million against a total operating expenditure of Tk 57 million resulting in a net profit of Tk 0.1 million.
The managing director is the chief executive of the bank.
Although the bank was established under the sponsorship/auspices of the
Army Welfare Trust and the members of the board of directors are from
army, the bank is autonomous and it operates like other commercial banks
working in Bangladesh. In 2000, it had 5 branches and a total of 44 regular
employees including the executive officers. The head office of the bank
is at Dhaka. [S M Mahfuzur Rahman]