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Southeast Bank Limited a private sector scheduled bank incorporated as a public limited company on 12 March 1995 under the companies act 1994. It commenced banking operations on 25 May 1995. The bank was set up with an authorised capital of Tk 500 million divided into 5 million ordinary shares of Tk 100 each. The paid up capital was Tk 200 million, of which the sponsor directors paid Tk 100 million. The paid up capital was enhanced to Tk 300 million in 1999. The reserve funds of the bank composed of statutory and general reserves stood at Tk 140 million on 31 December 2000.
The bank provides all kinds of commercial banking services to its customers including acceptance of deposits, lending, servicing foreign trade and project financing. It has been carrying out foreign exchange business since the inception. In 1995, the volume of its import servicing by way of opening of letters of credit was Tk 256.29 million and through negotiated export documents Tk 2.20 million. The quantum of bank guarantees business handled by the bank during that year was Tk 40.55 million. Foreign exchange business handled by the bank in 2000 totaled Tk 5,142 million, which comprised export servicing Tk 487 million, import financing Tk 3,805 million, and remittance facilities Tk 850 million. In 2000, the bank had correspondent relationships with 253 banks/bank offices in 50 countries. The bank mobilised deposits to the tune of Tk 8,452 million in 2000. On 31 December 2000, the aggregate amount of loans and advances was Tk 7,061.9 million. The lending was in trade and commerce including import and export financing, term loans to medium and large-scale industries, working capital loans, and financing small and cottage industries. The amount of the bank's overdue loans classified as non-performing on the reference date reached Tk 208.6 million. The bank had to maintain a provision of Tk 193.6 million in 2000 against the classified loans. Investments of the bank (other than loans and advances) during 1999 stood at Tk 9,718 million, which included government treasury bills Tk 930 million, 5-years 5% Biman Bond Tk 30 million, prize bonds Tk 1.49 million and shares of quoted companies Tk 10.32 million. In December 2000, total assets of the bank excluding off-balance sheet items were valued at Tk 11,710.6 million and the off-balance-sheet items at Tk 4,543.9 million. In 2000, the bank borrowed Tk 1,740.9 million from the inter-bank market during 2000 and deposited Tk 7,897 million with other banks in and outside Bangladesh. That year the total operating incomes of the bank were Tk 1,259.1 million and total expenditures Tk 188.8 million. Net interest incomes were Tk 232.3 million The management of the bank is vested in a 13-member board of directors including the chairman and a vice-chairman. The managing director is the chief executive. In 2001, the bank had 12 branches (all in urban areas) and 253 employees in various grades at the head office and branch levels. [S M Mahfuzur Rahman]
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