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Vanik Bangladesh Limited a Bangladesh-Sri Lanka joint venture leasing and investment banking company, incorporated at Dhaka as a non-bank financial
institutions under the companies act 1994. It started functioning on 5 November 1996 with an authorised and a paid up capital of Tk 1,000 million and Tk 50 million respectively. Vanik Incorporation Limited, a Sri-Lanka based investment company holds 40% share capital of the Vanik Bangladesh Limited and the remaining part is held by Bangladeshi promoters namely, Shantana Apparel Limited (10%) and other shareholders (50%). The paid up capital of the company was enhanced to Tk 100 million in 1998. The company obtained license from the bangladesh bank to operate as a non-bank financial institution under the Financial Institutions Act 1993 on 10 October 1997 and from the securities and exchange commission to operate as a merchant banker on 22 January 1998. The company provides lease, corporate and other types of financing facilities to individuals, traders and industrial units and also conducts all sorts of capital market activities in Bangladesh. It conducts the stock market activities through its subsidiary company named Vanik Bangladesh Securities Limited (VBSL). The company finances institutional infrastructure projects, such as educational institutions, hospitals, supermarkets and other trade and commercial
centres in different cities and towns of Bangladesh. It introduced internal credit cards and at the end of 2000, the number of holders of such cards was 6,500 while the service of these cards was available at about 1,250 shopping facilities. Up to 31 December 2000, the company financed a total of Tk 452 million to 150 projects. All these projects were of large and medium scale industries. Net leasing assets of the company on that date were valued at Tk 323 million. Its investments in housing sector amounted to Tk 14.20 million, transport sector Tk 11 million, and shares and debentures of its own subsidiary company Tk 24.99 million. In 2000, the total shareholders equity and liabilities of the company was Tk 457.62 million which comprised share capital Tk 100 million, share money deposits Tk 21.05 million, long term debts from banks Tk 318.70 million, lease rental deposits Tk 19.11 million, term deposits from customers Tk 16.16 million, and reserve for credit cards Tk 13,005 million. During the initial two years of its operation, the company suffered huge operating losses due to preliminary and pre-operating expenses. It started to earn net profits since 1999 and in 2000, the amount of profits before taxation stood at Tk 0.94 million.
The management of the company is vested in a board of
directors. The company has 71 employees and they work under the supervision
of a chief executive officer.
[S M Mahfuzur Rahman] |
