Contents

Letter of Transmittal 04
Key Ratios 05
Core Financials 06
Awards and Recognitions 08

Stock Performance 64 Management Discussion and

Organizational Overview Sustainability Report
Market Value Added (MVA) Statement 65 Analysis
Credit Rating of EBL 65

Financial Calendar 66 Foreword 137 Comparative analysis of financial performance 156

Vision and Mission 11
Core Values 12 Glimpses from the 28th AGM 68 Sustainability: An overview 138 Business Review

Strategic Priorities 13 Sustainability governance 138 • Corporate Banking 157

Corporate Directory 14 • Retail & SME Banking 161
Key highlights of 2020 139
Organogram 18 Governance Reports
Sustainability at EBL 141 • Treasury 166
Profile of Board of Directors 20
• Economic sustainability 141 Performance Review of EBL Subsidiaries 168
Management Committees 26
Directors’ Responsibility Statement 70
Products & Services 31 • Environmental sustainability 142 HR: Treating People with Care 174
Report of the Audit Committee 72
Timeline 36 • Social sustainability 143
Report of the Risk Management Committee (RMC) of the Board 75 ICT: The Enabler of Accelerated Digital Transformation 181
Key Events in 2020 38
Report of the Asset Liability Committee 77 Our move towards SDGs 146 A Digital Journey to Service Excellence 182

Report of the Executive Risk Management Committee 79 Way forward 147 Operational Excellence 184

Stewardship Dividend Distribution Policy of EBL 80

Corporate Governance Report 82
Corporate Social
Financial Reports
Chairman’s Message 41
BSEC Code of Corporate Governance: Our Compliance Status 94
Responsibility
From the Desk of Chief Risk Officer 107
Managing Director & CEO's Review 44
Risk Management Report 108 Our responsibility to our society 149 Statement on the Integrity of Financial Statements 189
Directors' Report 2020 48
• Key initiatives in 2020 108 Corporate citizenship strategy 149 Auditor’s Report to the Shareholders 190
• Risk management framework 108 Education : Key to social and economic development 149 Consolidated & Separate Financial Statements 194
• Risk governance 109 Financial Statements of Offshore Banking Operation (OBO) 276
Promoting human welfare 150
Stakeholders' Information • Risk appetite 110 Financial Statements of the Subsidiaries 282
Disaster management 150
• Risk management tools 112
Contribution to national exchequer 151
• Risk mitigation approaches 113
Communication with Stakeholders 55 Encouraging women empowerment 151

Financial Highlights 56
• Risk reporting 118
Environment-friendly Bank 152
Supplementary Information
• Way forward 118
Financial Goals and Performance (Bank) 56 Healthcare 153
Disclosures on Risk Based Capital (BASEL-III) 119
Five-year Progression 57 Celebrating Mujib Borsho 153 Branch Network 322
Management of Non-performing Loan (NPL) 131
Horizontal & Vertical Analysis 59 Recovery of Classified and Written-off Loans 133 Launching Mujib Corner at EBL Head Office 154 Notice of the 29th AGM 326

Graphical Presentation 61 Going Concern and Viability 134 Way forward 154 Proxy Form 327
Letter of Transmittal Key Ratios

Organizational Overview
All Shareholders of Eastern Bank Limited ROA ROE EPS (BDT) P/E Ratio (times)
Bangladesh Bank
Bangladesh Securities and Exchange Commission
Registrar of Joint Stock Companies & Firms 2020 2020 2020 2020
Dhaka Stock Exchange Limited
Chittagong Stock Exchange Limited 1.22% 15.04% 5.05 7.12
Dear Sir,

Annual report of Eastern Bank Limited for the year ended 31 December 2020. 2019 2019 2019 2019

We are pleased to present before you the Bank’s (EBL) Annual Report 2020 along with the audited Financial Statements (Consolidated and
1.30% 16.52% 4.94 6.72
Separate) for the year ended 31 December 2020 and as on that date.

Financial Statements of ‘The Bank’ comprise those of EBL - Domestic Banking Operation and Offshore Banking Operation (presented
separately) whereas consolidated Financial Statements comprise Financial Statements of ‘The Bank’ and those of its subsidiaries [EBL
CRAR Leverage Ratio Cost to Income Ratio NPL Ratio
Securities Ltd., EBL Investments Ltd., EBL Finance (HK) Ltd. and EBL Asset Management Ltd.] presented separately. Analyses in this report,
unless explicitly mentioned otherwise, are based on the financials of ‘The Bank’ not the consolidated financials.
2020 2020 2020 2020

Yours Sincerely, 15.23% 5.97% 45.58% 2.72%

2019 2019 2019 2019

Md. Abdullah Al Mamun, FCS

14.74% 5.28% 43.76% 3.35%
Company Secretary

AD Ratio (Bank) LCR-DBO NSFR-DBO NPL Coverage Ratio

2020 2020 2020 2020

78.82% 210.90% 105.49% 179.51%

2019 2019 2019 2019

77.90% 338.22% 114.45% 120.42%

4 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 5

Core Financials

2020 2019 2020 2019

Total assets BDT 336,936 m BDT 335,163 m Common equity tier-1 capital BDT 23,467 m BDT 20,719 m

Total loans & advances BDT 228,944 m BDT 232,051 m Total regulatory capital BDT 33,144 m BDT 30,569 m

Total investments BDT 63,949 m BDT 39,797 m Operating income BDT 14,134 m BDT 14,597 m

Total deposits BDT 242,358 m BDT 240,164 m Profit before provisions BDT 7,692 m BDT 8,210 m

Total borrowings BDT 44,286 m BDT 50,821 m Profit before tax BDT 6,691 m BDT 6,256 m

Total shareholders’ equity BDT 28,976 m BDT 25,567 m Profit after tax BDT 4,103 m BDT 4,008 m

6 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 7

Awards and Recognitions
EBL is a trend setter in the fast growing financial sector of International Finance Award: EBL was awarded the Most
Bangladesh. Our success comes from our continuous efforts Innovative Retail Bank – Bangladesh 2019 from International
to innovate products and services, our passion to perform and Finance magazine.
commitment to offer service excellence. We believe in creating
value for our customers and in the process creating value for Asiamoney Award: EBL was awarded the Asiamoney Best
the society. Corporate and Investment Bank in Bangladesh for four consecutive
years from 2017-2020.
EBL has been known for its consistent and sustainable growth
over the years. We believe in working with the customers at a time ISO Certification: In 2020, the ISO 27001:2013 certificate has been
and place where it is most convenient to them. We work to deliver conferred to EBL by Bureau Veritas (Bangladesh) Private Limited
ICSB National Award for
performance with a purpose and in the journey of our delivery of for its compliance with Information Security Management System Bank of the Year 2020 Corporate Governance PCI DSS Certificate ISO Certificate
performance our efforts were lauded and recognized at home and (ISMS), which is an international risk management framework. Excellence
abroad. We are the most awarded financial institution in the country
and the following awards speak volumes about our dedication and Our relentless effort to upgrade and update on every account of
commitment for responsible and ethical banking. standardization is reflected in our ISO 9001: 2015 certification of
operations and human resources division of the Bank.
The Banker Award: EBL has been awarded the prestigious Bank
of the Year 2020 for Bangladesh by The Banker. The award is the PCI DSS Certificate: PCI DSS certificate was awarded to EBL in
testimony to the strong management, sound business model, 2016 and reaffirmed consecutively in 2017 & 2018 by NCC Group of
banking innovations and prudent risk approach of EBL. UK, global leader in cyber security.

Euromoney-Asiamoney Trade Finance Survey: EBL has been In 2019, EBL was assessed by Network Intelligence (I) Pvt. Ltd. and
ranked number 1 in Bangladesh both in the category of Market they have found the Bank compliant with PCI DSS on card security.
Leaders and Best services among Asian Banks. All these are a testimony to our emphasis on card security.

ADB Award: EBL has been recognized as Leading SME Trade Bank A Leader in Retail Banking: In retail banking EBL has emerged
in 2020 for its outstanding contribution in supporting small- and as an undisputed leader. Eastern Bank Limited has won the
medium-sized enterprises in Bangladesh by Asian Development prestigious Best Retail Bank in Bangladesh award by Singapore-
Bank (ADB). based The Asian Banker for six consecutive years from 2013-18.

Awards from Visa: For its performance in the product innovation The London-based International Finance magazine in 2018
and cards business, EBL won the awards in three categories - awarded EBL for the Best Credit Card Offering in Bangladesh.
Excellence in Product Innovation, Excellence in E-commerce Excellence in Product Asian Banker Best Retail
ICMAB Best Corporate Award Best Employer Brand Award
Acquiring Business and Excellence in Cross-Border Business for Euromoney Award: In 2016, the Jury of Euromoney Awards Innovation from Visa Bank in Bangladesh
the year 2019-2020 from VISA. for Excellence conferred the Best Bank in Bangladesh for its
professionalism, prudence and growth. In 2017 and 2018, EBL was
ICSB National Award for Corporate Governance Excellence: Our adjudged the Best Bank in Bangladesh making the tally to three
system of corporate governance provides the basis for responsible consecutive years.
stewardship, simplicity and efficiency of processes and compliance
with relevant regulations with a focus on sustainable value Best Transaction Bank in Bangladesh: EBL was awarded the
creation. Our continuous efforts to adopt and adapt to international prestigious Asian Banker Business Achievement Awards 2018
best practices in corporate governance has been recognized by held in Beijing. EBL is the only bank from Bangladesh to win Best
the Institute of Chartered Secretaries of Bangladesh (ICSB). Since Transaction Bank in Bangladesh Awards in two categories of Best
inception of the award in 2013, EBL is the most awarded financial Cash Management and Best Trade Finance.
institution in the general banking category.
IFC Award: In 2017 IFC of World Bank group recognized EBL as the
ICMAB Best Corporate Award: As a recognition to consistent Best Issuing Bank Partner and Best Trade Operations Issuing Bank
business and financial performance, EBL has won Silver Award in Partner in South Asia.
the ICMAB Best Corporate Award 2019 under Private Commercial
Bank Category. EBL has won this award for four consecutive years FinanceAsia Award: EBL received Best Investment Bank in
from 2016. Bangladesh award in 2019 by FinanceAsia. The FinanceAsia
magazine also awarded EBL the Best Bank in Bangladesh accolade
Best Employer Brand Award: EBL received the Bangladesh Best in 2017.
Employer Brand Award 2019 at the 14th Employer Branding
Awards ceremony. The award was given by the globally renowned Superbrands Award: EBL has been recognized as a 'Superbrand' of International Finance Award Euromoney Award Asiamoney Award Superbrands Award
Employer Branding Institute. the country for the year 2018-2020 by the Superbrands Bangladesh.

8 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 9

 ORGANIZATI

Organizational Overview
ORGANIZATIONAL
ONAL OVER
OVERVIEW
Vision
To become the most valuable brand in the financial services
in Bangladesh creating long-lasting value for our stakeholders
and above all for the community we operate in by transforming
the way we do business and by delivering sustainable growth.

VIEW Mission

We will We will ensure We will constantly We will create

deliver service to maximize challenge our an enabling
excellence to all shareholders’ systems, procedures environment
our customers, value. and training to and embrace
both internal maintain a cohesive a team based
and external. and professional culture where
team in order to people will
achieve service excel.
excellence.

10 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 11

 Organizational Overview
Core Values Strategic Priorities

Service excellence Openness Trust Ensuring health and Focusing on Renewed focus on Adopting new
safety of all our staffs digitization to better efficient asset-liability technology to enhance
• We passionately drive • We share business plan. • We care for each other.
and customers during connect and provide management to reach, improve
customer delight.
• We encourage two-way • We share knowledge. the unprecedented seamless services to improve profitability efficiencies, fight
• We use customer satisfaction communications. health crisis induced our customers. and comply with all financial crimes and
• We empower our people.
to accelerate growth. by COVID-19. the regulatory ratios. enhance service
• We recognize
• We believe in change to achievements, celebrate excellence.
bring in timely solution. results.

Focusing on reduction Upholding the culture Hiring and retaining Intensifying cost
of concentration risk, of compliance and good of quality people with rationalization in
Commitment Integrity Responsible corporate diversify revenue governance practices a focus on reducing line with the spirit of
citizen sources and improve that effectively mitigate gender disparity. efficient operations.
• We know our roadmap. • We say what we believe in.
profitability. risks and ensure
• We are tax-abiding
• We believe in continuous • We respect every sustainable banking.
citizen.
improvement. relationship.
• We promote protection
• We do our task before • We are against abuse of
of the environment for
we are told. information power.
our progeny.
• We conform to all laws,
rules, norms, sentiments
Offering innovative and useful Utilizing market intelligence Formulating an effective
and values of the land.
cash management solutions and data analytics for offering disaster management
to improve deposit mix of the unique value propositions to system to combat unforeseen
bank. cross section of customers. emergency situations.

12 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 13

Corporate Directory

Organizational Overview
Name of the company Board of Directors
Eastern Bank Limited Chairman
Legal form Md. Showkat Ali Chowdhury

A public limited company incorporated in Bangladesh on 08 August 1992 to carry out all kinds of banking businesses in and outside Directors (Other than Chairman)
Bangladesh. Having taken over the businesses, assets, liabilities and losses of erstwhile Bank of Credit & Commerce International (Overseas)
Sl. Name Position
Limited as per BCCI Reconstruction Scheme 1992 of Bangladesh Bank, the Bank commenced its operations on 16 August 1992.
1. M. Ghaziul Haque Director
Composition of the Group EBL 2. Mir Nasir Hossain Director
Eastern Bank Limited (Group) 3. Salina Ali Director
Bank Subsidiaries (fully owned) 4. Anis Ahmed Director
EBL Securities Limited 5. Mufakkharul Islam Khasru Director
Domestic Banking Operation (DBO)
(Stock dealing & brokerage)
6. Gazi Md. Shakhawat Hossain Director
EBL Investments Limited
Off-Shore Banking Operation (OBO), Bangladesh 7. K.J.S Banu Director
(Merchant banking operations)
EBL Asset Management Limited 8. Zara Namreen Director
Yangon Representative Office, Myanmar
(Asset management i.e. managing mutual funds) 9. Ashiq Imran Independent Director
EBL Finance (HK) Limited 10. Ali Reza Iftekhar Managing Director & CEO
Guangzhou Representative Office, China (First foreign subsidiary doing trade finance and off-shore banking
N.B: Dr. Toufic Ahmad Choudhury was appointed as Independent Director by the Board of Directors on 09 November 2020 subject to approval
business in Hong Kong)
of Bangladesh Bank and Shareholders in the next Annual General Meeting (AGM).
Network
Company Secretary
Branches 85 Md. Abdullah Al Mamun, FCS
ATMs 220
Agent banking outlets 29
Committees of the Board of Directors
Sub-branches 5
Executive committee
Dropbox 67
Priority centers 16 Sl. Name Status with the Bank Status with the Committee
Foreign correspondents 512 1. Mir Nasir Hossain Director Chairman
Corporate relationship units 8 in Dhaka, 2 in Chattogram
2. Salina Ali Director Member
Mobile app EBL SKYBANKING
3. Anis Ahmed Director Member
Our core business 4. Ali Reza Iftekhar Managing Director & CEO Member
Corporate Secretary: Md. Abdullah Al Mamun, FCS

A wide array of products and customized solutions is offered to corporate clients through relationship units spread out in Dhaka and Audit committee
Chattogram. Our offerings include but not limited to term lending, project financing, working capital financing, trade financing, cash
Sl. Name Status with the Bank Status with the Committee
management solutions, payroll banking, syndication, advisory services etc.
1. Ashiq Imran Independent Director Member
Retail & SME 2. Mufakkharul Islam Khasru Director Member
It offers a wide range of deposit, loan and card products to suit dynamic and lifestyle needs of customers. It simplifies daily banking needs 3. Gazi Md. Shakhawat Hossain Director Member
and satisfies lifestyle needs and aspirations of consumers by providing suitable products and services. We have also a particular focus on Secretary: Md. Abdullah Al Mamun, FCS
small businesses that aspire to grow and use our connections.
Risk management committee
Treasury
Sl. Name Status with the Bank Status with the Committee
Treasury is primarily responsible for asset-liability management and balancing and managing the daily cash flow and liquidity of the Bank.
1 Mir Nasir Hossain Director Chairman
They also deal with investments in securities, foreign exchange, derivative instruments of the Bank.
2 Mufakkharul Islam Khasru Director Member
Credit rating 3 Gazi Md. Shakhawat Hossain Director Member
Moody’s: EBL is the first company in the country rated by Moody’s, a renowned global rating agency. The Bank has been assigned B1 rating 4 Zara Namreen Director Member
in December 2020. Secretary: Md. Abdullah Al Mamun, FCS
CRISL: The Bank has been awarded ‘AA+’ in the long-term and ‘ST-1’ in the short-term by Credit Rating Information and Services Limited (CRISL).

14 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 15

Manpower

Employees 2020 2019

Permanent 1,896 1,892
Trainee 1,148 1,237
Total 3,044 3,129

Ownership composition
As on 31 December 2020, shareholding position of EBL by the directors, general public and financial institutions is presented below:

Shareholders’ group No. of shares % of Share holding

Directors 245,030,885 30.18%
General public 479,452,756 59.06%
Financial institutions 87,315,906 10.76%
Total 811,799,547 100.00%

Stock exchange listing

Ordinary share of the Bank is listed with both Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited. Shares of EBL are
categorized as ‘A’ in both the Stock Exchanges.

Listing year

Dhaka Stock Exchange Limited 20 March 1993

Chittagong Stock Exchange Limited 28 September 2004

Capital (31 December 2020)

Authorized Capital BDT 12,000,000,000 (face value per share: BDT 10)
Paid-up Capital BDT 8,117,995,470 (face value per share: BDT 10)

Accounting year Auditor Corporate governance auditor

1 January to 31 December A. Qasem & Co., Chartered Accountants K.M.Hasan & Co., Chartered Accountants
(A member firm of ECOVIS International) (An independent member firm of McMillan
Woods International)

Tax consultant Legal advisor Registered office & Head office

ACNABIN Sadat Sarwat & Associates Eastern Bank Limited
Chartered Accountants 100 Gulshan Avenue
Dhaka-1212, Bangladesh
(A network member of bakertilly)
Phone: + 88 09666777325
Swift: EBLDBDDH
e-mail: info@ebl-bd.com
Web: www.ebl.com.bd

16 Eastern Bank Limited Go to Contents

Organogram

Organizational Overview
At EBL we place employee wellbeing at the heart of everything we do. During this difficult and exasperating times of
COVID-19 pandemic, we have our utmost attention to the safety of our people, monitoring their mental health and wellbeing
on a daily basis since the outbreak of pandemic early 2020. EBL is not only a well-knit family, it is also a home of happiness.

18 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 19

Profile of Board of Directors Mir Nasir Hossain

Organizational Overview
Director

Md. Showkat Ali Chowdhury A leading entrepreneur of the country, Mir Nasir Hossain has a diverse range of business
Chairman interests including construction, real estate, telecom, ICT, ceramic tiles manufacturing,
banking and insurance. He excelled as a student and passed his post-graduation in
Accounting from the University of Dhaka with flying colors. He joined EBL Board in 1993. He
A renowned business leader and philanthropist of the country, Md. Showkat Ali is also the Chairman of EBL Finance (HK) Ltd, a fully owned Subsidiary of EBL.
Chowdhury is successfully running a business conglomerate with diverse interests in
Mir Telecom Ltd., a business concern under his dynamic leadership, won the National
ship breaking and recycling, tea plantation and production, RMG industries, real estate,
Export Gold Trophy thrice in 2012-13, 2013-14 & 2016-2017 in Service Sector. He received
agency business and engineering services, inland container depot (ICD), commercial
the export trophy from the Hon'ble Prime Minister of the People's Republic of Bangladesh.
banking, insurance and securities. For his significant contributions to industrial growth of the country, he was declared as CIP
(Commercially Important Person) by the Ministry of Industries for the years 2012, 2013,
He joined the Board of Eastern Bank Limited (EBL) in 1993.
2017 and CIP Export 2014, 2015 from the Ministry of Commerce.
He completed his graduation from the University of Chittagong and is associated with
He led the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the apex
many local and international organizations including life member of SAARC Chamber trade body of the country, as its President from 2005 to 2007, and served the organization
of Commerce & Industry (SAARC CCI), member of Bhatiary Golf & Country Club Limited, prudently with commitment and dedication. He held many important positions in various
Chittagong Press Club, Chittagong Maa O Shisu General Hospital, Chittagong Club regional business and trade bodies including Senior Vice President of SAARC Chamber
Limited, Chittagong Seniors’ Club Limited and Bangladesh Ship Breakers & Recyclers of Commerce and Industry (SCCI) and Vice President of Confederation of Asia Pacific
Association (BSBRA). He is the first vice president of Chattogram Metropolitan Chamber Chambers of Commerce and Industry (CACCI). Currently, he is the President of Faridpur
of Commerce & Industry (CMCCI). Diabetic Association and Chairman of the Governing Body of Faridpur Diabetic Association
Medical College.
He is involved in many social activities and has been widely acclaimed for his
philanthropic works. He is also the Chairman of both the Executive Committee (EC) and Risk Management
Committee (RMC) of the Board of Directors of EBL.

He is actively engaged in various social works, most notably involved with Bangladesh Red
Crescent Society as life member and supports a number of hospitals and orphanages.

M. Ghaziul Haque Salina Ali

Director Director

A respected business leader, M. Ghaziul Haque joined EBL Board in 1993 and is still A renowned business personality, Salina Ali is the Chairperson of Unique Group, a leading
serving the Board with an interval of about five years between 2006 and 2011. business conglomerate in Bangladesh having business interest in real estate, ceramic
industry, hospitality & tourism, manpower export, banking services and human resources
He graduated from Chittagong Government College under University of Dhaka in 1955
development. She is also the Chairperson of Unique Hotel and Resorts Limited and
and began his career with the reputed British company Bird & Co. Ltd. and rose to the
involved with The Westin Dhaka from the beginning of its commercial operation and also
position of the Managing Director in 1976 when the company was changed to Birds
the Director of Unique Meghnaghat Power Limited.
Bangladesh Ltd.
She is a member of the Executive Committee (EC) of the Board of Directors of Eastern
In 1980, he left the company to venture into business and partnered with Aquamarine Bank Limited.
Limited, a Chattogram based Shipping Company. Later, he formed a joint venture
company Maersk Bangladesh Limited of Maersk Lines, Copenhagen, Denmark. He She did her Honours and Masters in Sociology from the University of Dhaka.
served as the Chairman of the company until 1997 with commendable success. She is involved in many social and philanthropic works and committed to make positive
changes in the society.
Currently, Chairman of MGH Group, he has diverse experience in shipping and
forwarding, import, export, marketing, banking, international business relations,
collaborations and joint ventures.

20 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 21

 Anis Ahmed Gazi Md. Shakhawat Hossain

Organizational Overview
Director Director

Anis Ahmed, founder and Group CEO of MGH Group, a Singapore-headquartered A noted business executive, Gazi Md. Shakhawat Hossain wears multiple hats. He is
conglomerate with business interests in supply chain services for global fast fashion the Managing Director of Purnima Construction (Pvt.) Limited and a director of Unique
and automotive brands, low-cost airlines GSAs, computer reservation systems, FM Hotel & Resorts Limited, Bay Hill Hotel & Resorts Limited, General Electric Company
radio stations, ride-sharing service, online marketplace for room accommodation, (BD) Limited and Unique Meghnaghat Power Limited.
tea and rubber plantations, premium real estate developments, food & beverage and
retail & commercial banking. MGH has business operations in two continents and in He is a member of both the Audit Committee (AC) and Risk Management Committee
18 countries including China, Vietnam, Saudi Arabia, India, Pakistan, Sri Lanka, Nepal, (RMC) of the Board of Directors of EBL. He is also a Director of EBL Investments Limited,
Myanmar, Thailand, Cambodia, Hong Kong, Singapore, UAE, Qatar, Egypt, Mauritius, a fully owned Subsidiary of EBL.
Nigeria, and Bangladesh. Born in 1969 in Noakhali, he obtained his Master’s degree in Accounting from the
He is also a member of the Executive Committee (EC) of the Board of Directors of EBL. University of Dhaka. He is well known for his expertise in the areas of financial reporting
and management, insurance, and hospitality industry.
He did his Bachelor of Science (Finance) from the University of Utah and an MBA
from Arkansas State University, USA. Anis began his career with A.P. Moller Maersk
as an Intern at its Morristown, New Jersey Headquarters. He later joined his father’s
business, an A.P. Moller Maersk joint venture in Bangladesh and left after four years to
establish his own start-up, MGH, named after his father M. Ghaziul Haque, Chairman
of the MGH Group.

Anis is the Co-Founder, Co-Chair and a Trustee member of ‘Suhana & Anis Ahmed
Foundation’ and MGH Foundation, undertaking initiatives to support Bangladesh
Eye-Care Hospital’s Free Cataract OT program, School for Autistic Students, BSMMU’s
Children’s Leukemia Ward, Bidyanondo Foundation’s “Ek Takar Ahar” program and
LAUF (Legal Aid for Unfortunate). LAUF provides financial supports to Bangladeshis
stranded in various parts of the world, unable to return home due to lack of legal and
financial abilities.

Mufakkharul Islam Khasru K.J.S Banu

Director Director

Born in a respected family of Chattogram, Mufakkharul Islam Khasru did his B.Com from A renowned personality in philanthropy circles of the country, Kishwar Jahan Sayeeda
Chattogram Commerce College and MBA from Institute of Business Administration (IBA), Banu, better known as K.J.S Banu, completed her Master’s degree from the University
University of Dhaka. of Dhaka in 1966. Beyond philanthropic works, she is also involved with various social
development projects in Dhaka and Chattogram and has a keen interest in banking and
Currently, he is the Managing Director of Finlay Properties Ltd., an affiliate of JF
healthcare. She joined the Social Welfare Committee of Samorita Hospital in the year
(Bangladesh) Ltd. Before taking up the current responsibilities at Finlay Properties in
2000. Currently, she is the Chairman of the Abul Mansur Shaukat Ali Family Trust.
2010, he was the CEO of SANMAR, a leading business conglomerate with diversified
business interests in property development, custom brokerage, stevedoring, and She has been actively involved with the Inner Wheel Club of Dhaka Midtown for a
commodity trading. number of years. She has also been an active member of Gulshan Ladies Club, Uttara
Ladies Club, Dhaka Ladies Club, Baridhara Diplomatic Club and Gulshan Club.
He is a member of both the Audit Committee (AC) and Risk Management Committee (RMC)
of the Board of Directors of EBL. He is also a Director of EBL Securities Limited, a fully A connoisseur of art, she is popular among the arts circle for her patronage of talented
owned Subsidiary of EBL. and promising young artists.

He is an avid reader and has a strong impulse to travel and explore the world. A sport She is a Director of EBL Investments Limited, a fully owned Subsidiary of EBL.
enthusiast, he enjoys socializing. He is an active member of a number of clubs including Previously, she was a member of the Board of Directors of EBL for a three-year term
Chittagong Club Ltd., Bhatiary Golf & Country Club, Chittagong Boat Club, and a life from 2003 to 2006.
member of Bangladesh Diabetic Society.

22 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 23

 Zara Namreen

Organizational Overview
Ali Reza Iftekhar
Director Managing Director & CEO

Born in a respected and distinguished family of Chattogram, Zara Namreen is currently A visionary banker and a dynamic leader, Ali Reza Iftekhar is an ardent promoter
the Executive Director of JF (Bangladesh) Limited and associated with Namreen of sustainable growth. As the Managing Director & CEO of EBL, he has successfully
Enterprise Limited, Z.N. Enterprise Limited and M/s. S.N. Corporation. She is a member introduced international best practices and ethical banking and transformed the
of the Risk Management Committee (RMC) of the Board of Directors of EBL. organization into the most valuable financial brand in the country. Under his leadership,
the bank has achieved many a laurel including the Best Retail Bank in Bangladesh
She did her Bachelor of Science from University of Hull, UK and Master of Science from
awarded by The Asian Banker for six consecutive years 2013 - 2018; Euromoney
Queen Mary University of London.
Best Bank in Bangladesh for three consecutive years, Asiamoney Best Corporate and
She is a member of Chittagong Club Limited and also involved with many Investment Bank of Bangladesh for four consecutive years, FinanceAsia Best Bank of
charity activities. Bangladesh in 2017 and 2019, the IFC Global Award for the Best Partner for Working
Capital Systemic Solution; ICSB National Award for Corporate Governance Excellence;
the Best Financial Institution 2010 at the DHL-Daily Star Bangladesh Business Award,
and Bank of the Year 2020 for Bangladesh by The Banker.

He is the current Chairman of Association of Bankers, Bangladesh (ABB) for 2020-21.

ABB is a forum of managing directors of Bangladesh’s scheduled banks. This is his
second term as the chairman of ABB. He also served as the chairman of the forum for
2014-2015.

An achiever throughout his banking career spanning over three decades, he was
awarded CEO of the Year 2012 at Asian HR Leadership Award held in Dubai.

Ashiq Imran
Independent Director

A renowned architect, Ashiq Imran is the Honorary Consul of The Russian Federation
in Chattogram and a representative of Belarus Chamber of Commerce and Industry
(BelCCI). He obtained his M. Arch in 1993 from Belarus National Technical University,
Belarus, CIS under a scholarship program from former USSR government. He has
been awarded medal of recognition for his contribution to the development of bilateral
relations between Russia and Bangladesh by setting up a memorial in the Laldighi area
of Chattogram in honour of Yuri Redkin, a Soviet Naval Officer killed in a mine-clearing
operation at the port of Chattogram in 1973.

He is the elected chairman of Institute of Architects Bangladesh (IAB) for a two-year

term 2021-22. Currently, he is the CEO and principal architect of architectural consulting
firm Fialka based in Chattogram.

He is associated with numerous organizations as member/adviser including

member of Chittagong Chamber of Commerce and Industry (CCCI); Board member
of Chattogram Development Authority; Adviser of Suchinta Bangladesh, Chattogram
Division; General Secretary of Soviet Alumni Association (SAAB), Chattogram and
other prestigious organizations.

He is a member of the Audit Committee (AC) of the Board of Directors of EBL. He is also
a Director of EBL Investments Limited and EBL Securities Limited, both are fully owned
Subsidiaries of EBL.

24 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 25

Management Committees

Organizational Overview
1 2 3 4 5 11 12 13 14

6 7 8 9 10 15 16 17 18

MANCOM
1 2 3 4 5 11 12 13 14

Ali Reza Iftekhar Ahmed Shaheen Muhammad Mustafa Mahmoodun Nabi M.Khurshed Alam Iftekhar Uddin Chowdhury Masudul Hoque Sardar Zahidul Haque M Latif Hasan
Managing Director & CEO DMD & Head of Corporate Haikal Hashmi Chowdhury DMD & Head of Planning & SEVP & Head of Special SEVP & Chief Financial SEVP & Chief Technology SEVP & Head of CRM
Banking DMD & Head of ICC & CAMLCO DMD & Chief Risk Officer Strategy Asset Management Officer Officer

6 7 8 9 10 15 16 17 18

Mehdi Zaman Riad Mahmud Chowdhury Mahiuddin Ahmed M.Khorshed Anowar S.M. Akhtaruzzaman Ashraf uz Zaman Monjurul Alam Md. Maskur Reza Md. Abdullah Al Mamun
DMD & Head of Treasury, DMD & Head of Corporate DMD & Head of Operations DMD & Head of Retail & Chwodhury SEVP & Head of Corporate EVP & Head, Human SVP & Head of Business VP & Company Secretary
Offshore Banking & FI Business, Dhaka SME Banking SEVP & Head of Business, Chattogram Resources Information Systems
Governance, Risk & Control

26 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 27

MANCOM Executive Risk Management Committee (ERMC)

Organizational Overview
SL NO Name Designation Status in Committee SL NO Name Designation Status in Committee
1 Ali Reza Iftekhar Managing Director & CEO Chairman 1 Mahmoodun Nabi Chowdhury DMD & Chief Risk Officer Chairman
2 Ahmed Shaheen DMD & Head of Corporate Banking Member 2 Muhammad Mustafa Haikal Hashmi DMD & Head of ICC & CAMLCO Co-Chairman
3 Muhammad Mustafa Haikal Hashmi DMD & Head of ICC & CAMLCO Member 3 Ahmed Shaheen DMD & Head of Corporate Banking Member
4 Mahmoodun Nabi Chowdhury DMD & Chief Risk Officer Member 4 M. Khurshed Alam DMD & Head of Planning & Strategy Member
5 M.Khurshed Alam DMD & Head of Planning & Strategy Member 5 Mehdi Zaman DMD & Head of Treasury, Offshore Banking & FI Member
6 Mehdi Zaman DMD & Head of Treasury, Offshore Banking & FI Member 6 Mahiuddin Ahmed DMD & Head of Operations Member
7 Riad Mahmud Chowdhury DMD & Head of Corporate Business, Dhaka Member 7 M. Khorshed Anowar DMD & Head of Retail & SME Banking Member
8 Mahiuddin Ahmed DMD & Head of Operations Member 8 S M Akhtaruzzaman Chowdhury SEVP & Head of Governance, Risk & Control Member
9 M.Khorshed Anowar DMD & Head of Retail & SME Banking Member 9 Iftekhar Uddin Chowdhury SEVP & Head of Special Asset Management Member
10 S.M. Akhtaruzzaman Chwodhury SEVP & Head of Governance, Risk & Control Member 10 Masudul Hoque Sardar SEVP & Chief Financial Officer Member
11 Iftekhar Uddin Chowdhury SEVP & Head of Special Asset Management Member 11 Zahidul Haque SEVP & Chief Technology Officer Member
12 Masudul Hoque Sardar SEVP & Chief Financial Officer Member 12 M Latif Hasan SEVP & Head of CRM Member
13 Zahidul Haque SEVP & Chief Technology Officer Member 13 Hemanta Theotonius Gomes EVP & Head of Credit Administration Member
14 M Latif Hasan SEVP & Head of CRM Member 14 Monjurul Alam EVP & Head, Human Resources Member
15 Ashraf uz Zaman SEVP & Head of Corporate Business, Chattogram Member 15 Saiful Islam SVP & Head of RMD Member Secretary
16 Monjurul Alam EVP & Head, Human Resources Member
17 Md. Maskur Reza SVP & Head of Business Information Systems Member Purchase Committee (PC)
18 Md. Abdullah Al Mamun VP & Company Secretary Member SL NO Name Designation Status in Committee
Extended Management Team (EMT) 1 M. Khurshed Alam DMD & Head of Planning & Strategy General Secretary
SL NO Name Designation Status in Committee 2 Masudul Hoque Sardar SEVP & Chief Financial Officer Member
1 M. Khurshed Alam DMD & Head of Planning & Strategy Chairman 3 Zahidul Haque SEVP & Chief Technology Officer Member
2 Md. Abdus Salam, psc SEVP & Head of Cash Management, Corporate Banking Member 4 Kamal Mustaba Ali EVP & Head of Administration Member
3 Md. Obaidul Islam SEVP & Head of Relationship Unit, Corporate Banking Member
5 Md. Maskur Reza SVP & Head of Business Information Systems Member
4 Mahdiar Rahman SEVP and Head of Relationship Unit, Corporate Banking Member
6 Md. Abdullah Al Mamun VP & Company Secretary Member
5 Md. Mokaddas SEVP & Head of Trade Operations Member
6 Syed Zulkar Nayen SEVP & Head of Liability & Wealth Management Member
7 Ahsan Ullah Chowdhury SEVP & Head of Digital Financial Services Member Credit Risk Management Committee (CRMC)
8 Hemanta Theotonius Gomes EVP & Head of Credit Administration Member SL NO Name Designation Status in Committee
9 Ziaul Karim EVP & Head of Communications & External Affairs Member 1 Mahmoodun Nabi Chowdhury DMD & Chief Risk Officer Chairman
10 Kamal Mustaba Ali EVP & Head of Administration Member 2 Ahmed Shaheen DMD & Head of Corporate Banking Member
11 Md. Rezaul Karim EVP & Head of ICT Operations Member
3 Mehdi Zaman DMD & Head of Treasury, Offshore Banking & FI Member
12 Md. Zahid Hossain EVP & Head of Service Delivery Member
4 M. Khorshed Anowar DMD & Head of Retail & SME Banking Member
13 Rasheedul Huque EVP & Branch Area Head, Dhaka Member
14 Sajjad Kabir Md. Shariful Alam EVP & Head of Core Banking System Member 5 Iftekhar Uddin Chowdhury SEVP & Head of Special Asset Management Member
15 Mohammed Moinul Islam EVP & Head of Retail Collection Member 6 Masudul Hoque Sardar SEVP & Chief Financial Officer Member
16 Tasnim Hussain EVP & Head of Asset, Retail & SME Member 7 M Latif Hasan SEVP & Head of CRM Member Secretary
17 Md. Fazlur Rashid SVP & Head of Retail Risk Member 8 Saiful Islam SVP & Head of RMD Member
18 Md. Maskur Reza SVP & Head of Business Information Systems Member
19 Farzana Ali SVP & Head of Service & Business Quality and Attrition Management Member Sustainable Finance Committee (SFC)
20 Sarmin Atik SVP & Head of Priority and Women Banking Member
21 Bidhan Barua SVP & Senior Manager, CRM Member SL NO Name Designation Status in Committee
22 Riyadh Ferdous VP & Head of Brand Member 1 M. Khurshed Alam DMD & Head of Planning & Strategy Chairperson
23 Shah Muntasin Mujtaba VP & Head of Corporate Sales, Treasury Member 2 Ahmed Shaheen DMD & Head of Corporate Banking Member
24 Md. Shahjahan Ali VP & Head of Compliance & Deputy CAMLCO Member 3 Muhammad Mustafa Haikal Hashmi DMD & Head of ICC & CAMLCO Member
25 Md. Muyeed Hasnayen VP & Head of Cards Operations Member
4 Mehdi Zaman DMD & Head of Treasury, Offshore Banking & FI Member
26 Nahid Farzana VP & Head of Cards Business Member
27 Muhammad Shahriar Husain SAVP & Head of Digital Banking Member 5 M. Khorshed Anowar DMD & Head of Retail & SME Banking Member
28 Rajan Kumer Saha SAVP & Head, Financial Planning, Reporting & Analysis Member & Secretary General 6 Iftekhar Uddin Chowdhury SEVP & Head of Special Asset Management Member
29 M. Shahryar Faiz SAVP & Head of Research Member 7 Masudul Hoque Sardar SEVP & Chief Financial Officer Member
8 Zahidul Haque SEVP & Chief Technology Officer Member
Asset Liability Committee (ALCO)
9 M Latif Hasan SEVP & Head of CRM Member Secretary
SL NO Name Designation Status in Committee
10 Ahsan Ullah Chowdhury SEVP & Head of Digital Financial Services Member
1 Ali Reza Iftekhar Managing Director & CEO Chairman
11 Hemanta Theotonius Gomes EVP & Head of Credit Administration Member
2 Ahmed Shaheen DMD & Head of Corporate Banking Member
12 Monjurul Alam EVP & Head, Human Resources Member
3 Mehdi Zaman DMD & Head of Treasury, Offshore Banking & FI Member Secretary
4 M. Khorshed Anowar DMD & Head of Retail & SME Banking Member 13 Ziaul Karim EVP & Head of Communications & External Affairs Member
5 Masudul Hoque Sardar SEVP & Chief Financial Officer Member 14 Kamal Mustaba Ali EVP & Head of Administration Member
6 Saiful Islam SVP & Head of RMD Member 15 Saiful Islam SVP & Head of RMD Member
7 Mohammad Shahazadul Alam Khan AVP & Manager, ALM Trading, Treasury Member

28 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 29

Supervisory Review Process (SRP) Team
Products and Services

Organizational Overview
SL NO Name Designation Status in SRP Team
1 Ali Reza Iftekhar Managing Director & CEO Chairman
2 Ahmed Shaheen DMD & Head of Corporate Banking Member
3 Muhammad Mustafa Haikal Hashmi DMD & Head of ICC & CAMLCO Member
Retail & SME Banking
4 Mahmoodun Nabi Chowdhury DMD & Chief Risk Officer Member
5 Mehdi Zaman DMD & Head of Treasury, Offshore Banking & FI Member
Deposit Products
6 Mahiuddin Ahmed DMD & Head of Operations Member
7 Masudul Hoque Sardar SEVP & Chief Financial Officer Member
8 Zahidul Haque SEVP & Chief Technology Officer Member Retail Accounts EBL Current Plus EBL Earn First FD DPS Account
9 M Latif Hasan SEVP & Head of CRM Member EBL Insta Current EBL Super FD EBL Equity Builder
Savings Account
10 Saiful Islam SVP & Head of RMD Member Secretary
EBL Classic Savings DPS Account EBL Super FD Repeat
Fixed Deposit Account
BASEL Implementation Unit (BIU) EBL Power Savings EBL Confidence
Business Accounts EBL Fixed Deposit
EBL Max Saver EBL Millionaire Scheme
SL NO Name Designation Status in BIU Current Account Extra Value Fixed Deposit
EBL Premium Savings EBL Millionaire Women DPS
1 Mahmoodun Nabi Chowdhury DMD & Chief Risk Officer Chairman Current Deposits EBL Alo
EBL Platinum Plus Savings EBL Kotipoti
2 Muhammad Mustafa Haikal Hashmi DMD & Head of ICC & CAMLCO Member EBL Diamond
EBL Multiplier FCY Account
3 Mehdi Zaman DMD & Head of Treasury, Offshore Banking & FI Member EBL 50+ Savings EBL Super FD
Export Retention Quota
4 Masudul Hoque Sardar SEVP & Chief Financial Officer Member Secretary EBL Smart Women’s Savings EBL Fixed Deposit EBL Repeat
5 M Latif Hasan SEVP & Head of CRM Member EBL RFCD EBL Repeat FD SND Account
* It has a working team consisting of three members.
EBL Insta Savings EBL 50+ FD Short Notice Deposit

Cost Olympic Committee (COC) Current Account EBL Fixed Deposit EBL Shubidha
EBL Current Account Extra Value Fixed Deposit EBL Super HPA
SL NO Name Designation Status in Committee
1 Masudul Hoque Sardar SEVP & Chief Financial Officer President
2 Zahidul Haque SEVP & Chief Technology Officer Member Retail Loan Products
3 Syed Zulkar Nayen SEVP & Head of Liability & Wealth Management Member
4 Kamal Mustaba Ali EVP & Head of Administration Member
5 Monjurul Alam EVP & Head, Human Resources Member EBL Executive Loan EBL Home Loan EBL Two Wheeler Loan EBL Education Finance pack
6 Iftikhar Imam SVP & Head of Inbound Business & China Desk Member
EBL Women’s Loan EBL Home Credit EBL Fast Loan
7 Md. Maskur Reza SVP & Head of Business Information Systems Member Secretary
EBL Assure EBL Auto Loan EBL Fast Cash
8 Riyadh Ferdous VP & Head of Brand Member
9 Muyeed Hasnayen VP & Head of Cards Operations Member
SME Loan Products
Central Compliance Committee (CCC)
SL NO Name Designation Status in Committee
EBL Business Solution EBL Utkorsho EBL Udoy EBL Krishi
1 M. M. Haikal Hashmi DMD, Head of ICC & CAMLCO Chairman
EBL Cash Credit EBL Mukti EBL Utpadon EBL E-Loan/Cash
2 Mahmoodun Nabi Chowdhury DMD & Chief Risk Officer Member
3 Mahiuddin Ahmed DMD & Head of Operations Member
Stimulus Fund for CMSMEs EBL Nobodoy EBL Agrim
4 M. Khorshed Anowar DMD & Head of Retail & SME Banking Member EBL Uddipon EBL Asha EBL Projukti
5 Zahidul Haque SEVP & Chief Technology Officer Member
6 Monjurul Alam EVP & Head, Human Resources Member
7 Md. Abdul Awal SVP & Head of Monitoring Member NRB & Expat Products
8 Md. Shahjahan Ali VP & Head of Compliance, AMLD & Deputy CAMLCO Member Secretary
9 Muyeed Hasnayen VP & Head of Card Operations Member
NRB Deposit Products NRB Loan Products EBL Expat Investment
Integrity Committee EBL Global Personal Secured Loan EBL Expat is a 360 degree Wage Earners Development
EBL NFCD (Fast Loan) banking solution, that is Bond (WEDB)
SL NO Name Designation Status in Committee perfect for any Foreign US Dollar Investment Bond
EBL Shonchoy Personal Secured Credit
1 M.Khurshed Alam DMD & Head of Planning & Strategy Chairman & Focal Point National currently working in (USDIB)
EBL Paribar (Fast Cash)
2 M. Khorshed Anowar DMD & Head of Retail & SME Banking Member Bangladesh. US Dollar Premium Bond
3 Masudul Hoque Sardar SEVP & Chief Financial Officer Member Remittances EBL Expat FCY Account  (USDPB)
4 Ziaul Karim EVP & Head of Communications & External Affairs Member Remitted fund can be disbursed
EBL Expat LCY Account
5 Monjurul Alam EVP & Head, Human Resources Member & Deputy Focal Point through EBL branches, and
6 Farzana Ali SVP & Head of Service & Business Quality Member smart remit card

30 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 31

 Organizational Overview
Student Banking Products & Services Cards

EBL Junior EBL Campus Account EBL Student File Services

EBL Child Future Plan EBL Aspire EBL Credit Cards EBL Visa Signature Debit Platinum Credit EBL Mastercard Shwapno
EBL Visa Infinite Debit EBL Visa Bangladesh Navy Titanium Credit
EBL Visa Classic Credit
EBL Visa Business Debit Credit EBL Mastercard BASIS
EBL Visa Gold Credit
Priority Banking Service EBL Visa Meena Bazar Titanium Credit
EBL Visa Platinum Credit EBL Visa Global Debit
Platinum Credit EBL Mastercard Rotary
EBL Visa Women Platinum EBL Visa Payroll Debit
EBL Visa BAT Co-brand Titanium Credit
Credit EBL Visa Junior Debit
EBL Priority offers a wide range of attractive propositions and personalized services, adding value to the premium customer base of the bank. Corporate Credit EBL Mastercard JCI Titanium
EBL Visa Signature Lite Credit EBL Mastercard Titanium Debit Credit
EBL Visa Bangladesh Foreign
EBL Visa Signature Acci-Shield EBL Mastercard World Debit Service Association Signature EBL Mastercard Oil & Gas Credit
Credit Credit
EBL Mastercard Payroll Debit EBL Mastercard BASIS Prepaid
EBL INSTA Banking EBL Visa Infinite Credit
EBL Mastercard Women EBL Visa Oil & Gas Credit EBL Mastercard Robi Smart
EBL Mastercard Titanium Platinum Debit EBL Visa Flight Expert Credit Prepaid
Credit
EBL UnionPay Classic Debit EBL Visa GHC Credit EBL Mastercard Berger Prepaid
First bank to open Instant account using e-KYC from anywhere in the world. EBL Mastercard World Credit
EBL Prepaid Cards EBL Visa Wholesale Credit EBL Mastercard Novo Air
EBL Diners Club International Prepaid
EBL Visa Lifestyle Prepaid EBL Visa Marks & Spencer
Payroll Banking Services Credit
Credit EBL Mastercard Rotary Prepaid
EBL UnionPay International EBL Visa Payroll Prepaid
EBL Visa Bangladesh EBL Mastercard DHL One
Platinum Credit EBL Visa Hajj Prepaid
Communication Satellite Prepaid
Executive Account – For Salary EBL Visa Payroll Card – Smart EBL Salary Shield – Employee EBL Connect – Secured EBL Corporate Credit Card EBL Mastercard Aqua Prepaid Company Limited Credit EBL Banglalink Payroll Prepaid
Disbursement Expense Card Insurance Scheme Digital Platform for Salary Revolving loan facilities for EBL Diners Club International EBL Visa Unilever Prepaid EBL Diners Club International
disbursement corporate houses to manage Global Prepaid
EBL Visa ACCA Prepaid Vroom Credit
Company’s local and global travel EBL UnionPay Dragon Prepaid
& entertainment expenses EBL Visa Grameenphone Others
Supply Chain Finance Co-branded Cards Express Prepaid
EBL Debit Cards Facilities
EBL Visa Robi Platinum Credit EBL Visa DPS Prepaid
EBL Visa Classic Debit EBL ZIP (Zero% Installment
EBL Visa Bangladesh Army EBL Visa BATA Prepaid Plan)
Supplier Finance (Overdraft/Short Term Dealer Finance (Term loan/Overdraft/Short EBL Shomonnoy (working capital finance
EBL Visa Platinum Debit Platinum Credit
Loan) Term Loan) product for suppliers and dealers of large EBL Visa Netizen Prepaid EBL EasyCredit
corporate houses) EBL Visa Women Platinum EBL Visa Bangladesh Air Force
EBL Visa Wholesale Prepaid EBL Want2Buy
Debit

Digital Channels

Treasury
EBL DIA SKYBANKING EBL Dropbox EBL SMS Banking & SMS Alert
Payment Solution Internet Banking EBL Contact Center with Phone Service

EBL 365 Banking facility EBL Web Chat Money Market Products Fixed Investment Products Foreign Exchange Products Derivative Products
• Call money • Government Securities to • Inter-Bank spot in major • Forward contract
• Term money Inter-Bank currency pairs • Interest rate swap (IRS)
Agent Banking • Re-purchase agreement • Government securities to • Customer spot in major
• Reverse repo customers currency pairs
• Commercial paper • T-Bond to foreign • Foreign remittance
Opening of customer account Inward foreign remittance disbursement Transfer of funds
individuals, investors &
Cash deposit and cash withdrawal Payments of bills/utility bills Collection of documents in relation to accounts • Foreign exchange swap
institutions
• Foreign currency
• Sub-Ordinated Bond
placement
• EBL Fixed income

32 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 33

 Corporate Banking

Cash Management Solutions

• Nationwide Collection Services (NCS) • Cash Pick-up & Delivery Service • Commercial Payments & Solutions (CPS)
• Payment Transfer Services (PTS) • Mobile Financial Service (MFS) • Utility Bills Collection
• EBL Cheq Pro • EBL Connect • EBL SPEED

Working Capital Solutions

Funded Facilities • Foreign Documentary Bill Purchased (FDBP) Guarantee (Open ended/Close ended)
• Import Loan • EDF Loan • Performance Guarantee
• Demand Loan • Bid Bond
Non-Funded Facilities
• Manufacturers Demand Loan • Advance Payment Guarantee
Letter of Credit (Cash/Back to Back)
• Overdraft • Retention Bond
• Sight LC
• Time Loan • Security Bond
• Usance/ Deferred LC
• Packing Credit
• Structured LC
• Local Documentary Bill Purchased (LDBP)

Bridge Financing

• To finance temporary funded requirement for onward conversion to other facilities.

Long-term Financing

• Term Loan (Normal/ Amortized/ • Term Loan (IPFF) • Term Loan (LTFF)
Capitalized)

Offshore Financing

Foreign Currency Financing: • Demand Loan • Term Loan

• Import Loan • Bill Discounting/Financing • Guarantee

Structured Financing

• Local and Foreign Currency • Advisory Services • Preference Shares

Syndicated Term Financing • Trustee and Agency Services • Export Credit Agency (ECA) Backed
• Syndicated Working Capital Financing • Arranging Debt (Bonds/Commercial Paper) Financing
• Multilateral Financing

34 Eastern Bank Limited Go to Contents

 2020
Timeline

Organizational Overview
01 April 2020 15 October 2020 28 October 2020 02 December 2020
EBL was awarded the EBL was awarded for EBL was awarded EBL was awarded ‘Bank
Best Corporate and its performance in the ‘Leading SME Trade of the Year 2020’ for
Investment Bank in product innovation and Bank’ by ADB in the Bangladesh by The
Bangladesh for four cards business from year 2020 for its Banker.
consecutive years VISA in three categories outstanding contribution
2019 from 2017-2020 by - Excellence in Product in supporting small
08 September 2019 15 December 2019 16 December 2019 Asiamoney. Innovation, Excellence in and medium-sized
EBL won the Bangladesh EBL won the prestigious EBL won the ‘Most E-commerce Acquiring enterprises (SMEs) in
Best Employer Brand Award ‘ICMAB Best Corporate Innovative Retail Bank – Business and Excellence Bangladesh.
2019 at the 14th Employer Award 2018’ securing first Bangladesh 2019’ by the in Cross-Border Business
Branding Awards ceremony position in the Private International Finance for the year 2019-2020.
by the globally renowned Commercial Bank Category. Magazine. 2018
Employer Branding Institute. 22 March 2018 24 May 2018 24 June 2018 18 July 2018 10 November 2018
EBL adjudged the As a first Bangladeshi EBL moved into its EBL repeated the EBL won the gold
‘Best Retail Bank Bank, EBL won Best permanent home performance in award at the ‘ICSB
in Bangladesh’ Transaction Bank in at 100 Gulshan 2018 by winning National Award
2017 award for 2018 Bangladesh award in Avenue, Dhaka. Euromoney Best for Corporate
28 December 2017 consecutively for the two categories of ‘Best This is a state-of- Bank in Bangladesh Governance
sixth time by The Cash Management the-art intelligent award for the third Excellence 2017’
EBL launched country’s first Artificial Intelligence (AI) - based banking chatbot titled ‘EBL
Asian Banker. Bank' and 'Best Trade building and also consecutive year. by the Institute
DIA’ (EBL Digital Interactive Agent) – where anyone can interact/chat with an AI-based Chat
Finance Bank’ at the an architectural of Chartered
Robot on social media platform.
prestigious Asian landmark of the city. Secretaries of
Banker Business Bangladesh (ICSB).
Achievement Awards
2015 2018.
18 January 2015 2016
A Capacity Enhancement Center named ‘EBL Nest’ started its journey as an idea generation
21 March 2016 01 October 2016
and innovation center with a vision to ‘Imagine without Fear’.
EBL as a first Bangladeshi Bank was assigned long- EBL achieved PCI DSS certification for
term rating Ba3 with a stable outlook by Moody’s, implementing global information security standard
one of the top international rating agencies. from world’s cybersecurity leader NCC Group, UK.
2012
25 September 2012 2014
EBL CEO awarded ‘CEO of The Year’ by World HRD Congress and World Brand Congress 31 July 2014
hosted by Asian Confederation of Businesses in Dubai. EBL received ‘Global Brand Excellence Awards’ from The World Brand Congress in ‘Brand Revitalization’
category in recognition of EBL’s sustainability in innovative branding.

2010
01 March 2010 04 April 2010 2011
Acquired 60% shares of a brokerage Became first bank in Bangladesh to 09 January 2011 25 June 2011 28 November 2011
house ‘LRK Securities Limited’ (renamed implement ‘Universal Banking System Incorporated ‘EBL Asset Adjudged the Best Financial ‘EBL Finance (HK) Limited’,
as ‘EBL Securities Limited’) and the rest (UBS)’, world’s one of the renowned core Management Limited’, a fully Institution 2010 at the DHL- the fully owned first foreign
in 2012. banking solutions. owned subsidiary of the Bank Daily Star Bangladesh Business subsidiary of EBL incorporated
to do asset management Award, one the most prestigious with Hong Kong authority.
especially mutual funds. awards in Bangladesh.
2006
09 November 2006 2009
Partnered with ADB under Trade Finance Facilitation Program (TFFP) to receive 30 December 2009
guarantee and revolving credit facility. Established ‘EBL Investments Limited’, a fully owned subsidiary to do merchant banking operations
(License received in January 2013).
2003 2004
17 July 2003
19 May 2004 28 September 2004
Launched online banking services across all the branches.
Commenced Offshore Banking Operations in Listed with Chittagong Stock Exchange Ltd.
Bangladesh.
1992 1993
08 August 1992 16 August 1992 20 March 1993
Incorporated. Commenced banking operations. Listed with Dhaka Stock Exchange Ltd.

Go to Contents Go to Contents
36 Eastern Bank Limited Annual Report 2020 37
Key Events in 2020

Organizational Overview
01 January 2020 11 March 2020 15 October 2020 22 October 2020 10 November 2020 22 November 2020

New Year Celebration at Head Office EBL inaugurates Mujib Corner at EBL wins three awards for its EBL launches SKYCARE to address all EBL partners with Austrian OeEB to EBL partners with ITFC to
Head office lobby area performance in the product innovation card related customer issues support RMGs and SMEs in Bangladesh support SMEs
and cards business from VISA

12 January 2020 27 January 2020 06-09 February 2020 16 July 2020 16 July 2020 02 September 2020
Seminar on Breast and Seminar on Perspective Plan of Participated in EBL and Tradewind sign MoU EBL partners with DEG-FMO EBL launches Bangla QR
Gynaecological Health Bangladesh Development Basis Soft Expo fair 2020 for Export Factoring Solutions for Impact Financing Payment
Awareness

28-29 February 2020 15 March 2020 18 March 2020 06 September 2020 12 September 2020 21 October 2020
Retail Banking Signing with ROBI 10 Minute EBL celebrates Birth Centenary EBL launches two new EBL launches ‘EBL Ovilashi’ for EBL opens 5th sub-branch at
Conference 2020 School of Father of the Nation contactless credit cards women entrepreneurs KEPZ
Bangabandhu
Sheikh Mujibur Rahman

01 April 2020 10 May 2020 30 May 2020 28 October 2020 02 December 2020 23 December 2020
EBL wins the Asiamoney EBL signs participation EBL launches ‘EBL INSTA EBL wins Leading SME Trade EBL wins Bank of the Year- EBL becomes platinum
2020 Best Corporate And agreement with Bangladesh Account’ - first E-KYC account Bank award from ADB 2020 Bangladesh Award by sponsor of the international
Investment Bank award Bank in Bangladesh The Banker sports event ‘Bangabandhu
Sheikh Mujib Dhaka
Marathon-2021’

38 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 39

 STEWARD Chairman’s Message

STEWARDSHIP
SHIP

Md. Showkat Ali Chowdhury

Chairman of the Board of Directors

We believe in taking actions that best support long term

interests of the stakeholders. Good governance, commendable
creditworthiness, innovative products and services, digital
innovation and, above all, a pool of skilled and motivated people
helped us grow sustainably. By responding rightly to the pandemic
crisis, we have assisted our customers build financial resilience,
which in turn had strengthened our ties with them.

40 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 41

Dear shareholders, costs. The Bank has closed the year with 2.72% NPL, way below the involved in foreign trade on sales-contract terms. We have also been them to grow as skilled workforce we have been offering scholarship

Stewardship
industry average of 7.66%. Our sound financial performance has supporting country’s different infrastructure projects at different to meritorious and disadvantaged students of University of Dhaka.
On behalf of Board of Directors of EBL, I welcome you all to the 29th been reflected in the key profitability ratios including ROA and ROE phases. As a responsible corporate citizen, we have also allocated our CSR
Annual General meeting of the company and have the privilege of of 1.22% and 15.04% respectively and improved earnings per share expenditure in emergency disaster relief, upgrading facilities to
presenting before you the Annual Report and audited financial (EPS) of BDT 5.05 in 2020 compared to BDT 4.94 in 2019. We uphold compliance culture and follow good promote education and encouraging women empowerment.
statements of the Bank for the year 2020. As an institution, we had to governance practices
cope with many a crisis and difficult period over the years, but have Supporting responsible business growth Consistency in dividend payment
always managed to master the challenges and emerge from those We believe good governance promotes long-term interest of
situations with renewed strength. The year 2020 has been, unlike The board fully supports the Management Team’s drive to improve shareholders, ensures accountability of Board and management and In line with relevant BB circulars, the board has proposed 17.5% cash
anything in the past, a year of uncertainty and despair induced by resilience to external shocks, while helping to ensure excellent helps building public trust in the Bank. We uphold strong and effective dividend and 17.5% stock dividend for the year 2020. We always give
global Coronavirus pandemic. As the chair of the Board, it gives me governance and the highest ethical standards. This drive has corporate governance practices to cultivate a culture of integrity, utmost importance to maintain a fine balance between consistency of
immense pleasure to share with you that despite this unprecedented helped the Bank to be an efficient organization with higher growth transparency, sound financial management, which ultimately leads dividend payment and strengthening the capital base for sustainable
global crisis, we have accomplished a great deal, made excellent potential. As a result, despite the global and macroeconomic to overall sustainable business and financial performance. We have business growth. We make our decision to distribute dividend based
progress in many areas and achieved our objectives of delivering challenges we continued to show resilient performance. We believe proactively supported establishing simple and efficient processes on in-depth assessment of organization’s earning capacity and
well to our valued shareholders. in taking actions that best support long term interests of the focusing on compliance with relevant regulations which will help
growth prospects in compliance with various regulatory conditions.
stakeholders. Good governance, commendable creditworthiness, us in sustainable value creation and will provide the basis for
Economic outlook innovative products and services, digital innovation and, above all, responsible stewardship. Looking ahead: reaping the benefits of work done in 2020
a pool of skilled and motivated people helped us grow sustainably.
2020 was a year that saw both the life and livelihood came to a By responding rightly to the pandemic crisis, we have assisted At EBL, we have established a goal oriented culture backed by sound
I take great pride in how we have responded to COVID-19 pandemic
veritable grinding halt across the globe driven by fearful public our customers build financial resilience, which in turn had ethical and governance practices. These efforts have been recognized
and am overwhelmed the way customers and shareholders have
health concerns over the outbreak of COVID-19. Being slowed by strengthened our ties with them. by the ICMAB Best Corporate Award and the ICSB National Award for
rested faith in us. Despite facing the unforeseen shockwaves, we
3.3% in 2020 (based on IMF report), global economy has slowly Corporate Governance Excellence.
were on track to deliver a solid performance which exhibits the level
started to pick up after facing a crisis far severe than the 2008- Our resilience to external challenges has once again been reflected
of our courage, determination, passion and resilience. In 2021, we
09 global financial crisis. Despite facing the pandemic induced through the recognition from The Banker with the coveted Bank of We care for our employees
the Year 2020 for Bangladesh award. foresee the global and local economy and business conditions will
challenges in all economic sectors, food production, robust flow of
We offer a sustainable career path for our people and have over the still remain challenging. Hence, we must continue to remain alert to
remittance, suitable and timely measures taken by the government
Digitization as a new way of banking years built a brand of great value and rich in tradition. During the the situation and respond timely. The Board will continue to oversee
and Bangladesh Bank paved the way for the economic recovery of
troubled times of 2020, we increased employee engagement to keep management’s role in striking the right balance between utilizing
Bangladesh. Country’s economy managed to experience a moderate We are keenly following the evolving nature of customer expectations them assured, motivated and aligned with our goals. We also took all- growth potentials and the appropriate risk controls. I am convinced
5.24% GDP growth in FY 2020. which challenge us to think better and work smarter. As we realized out measures to keep our employees safe, ensured all the WHO and that it will further strengthen the foundation of this Bank and will
that digitization was going to change country’s entire banking govt. health guidelines to prevent COVID-19 and facilitated remote secure better risk-adjusted return.
Global economy is expected to grow by 6.0% in 2021 as economic
landscape, we adequately equipped us to emerge among the leaders working as a part of our People’s safety policy to ensure maximum
activities in advanced economies are lifting up. However, transition
in digital banking. As the pandemic forced our customers to embrace care for our employees. I would like to thank our people for their great personal dedication
of economy back to pre-pandemic level depends largely on scale and
digital banking over physical one, our expertise and available digital and passion to perform as a team and specially the Managing
efficacy of vaccination programs across the globe. As most parts
options have enabled us to broaden our digital footprint and provide We care for the community we operate in Director & CEO Ali Reza Iftekhar, who led the team to achieve our goals
of the world is facing a slow rollout of vaccines, the prospects for
seamless customer service. Digitization has helped in improving while building a strong foundation for the future. We are grateful to
recovery are diverging across countries and regions. We would like to play our part in driving economic growth towards
customer experience through better connectivity in a comprehensive regulators, especially Bangladesh Bank for their constant support
manner. social progress. We acknowledge this weighty responsibility and
EBL remains solid amid formidable challenges and prudent guidance for supporting us in delivering excellence.
regard ourselves as a good corporate citizen at heart.
The crisis has required us to re-examine our systems and processes
This global pandemic has been a litmus test of our preparedness to We actively support initiatives aimed at making positive changes and
and adapt to smarter ways of operations. Our continuous effort to stay
handle the crisis and our resilience to master the challenges. The impacting lives. We believe, our long-term success depends on the
relevant and provide useful services has always been recognized.
lesson we have learned during this pandemic is we are better off progress of the community and the people we serve. We are engaged
This year EBL has been ranked number one in Bangladesh both
if we are connected with our customers and other stakeholders. in various social activities related to education, healthcare, sports,
in the category of Market Leaders and Best services among Asian
We now have a clear understanding of what we should value most art, and culture which shows our interest in wider social issues. We
Banks by Euromoney-Asiamoney Trade Finance Survey.
vis-à-vis what we can do without. Over the past one year we have have extended our support to fight COVID-19 pandemic and to those Md. Showkat Ali Chowdhury
transitioned to a team better coordinated and coherent than before. who desperately need help. To strengthen youth confidence and help Chairman of the Board of Directors
Partnering with FIs for financing solution
Despite unprecedented disruptions caused by the pandemic, we have
managed to generate a positive impact for our clients, our people, Customers have witnessed unprecedented disruptions of the
and our investors with solid financial performance during 2020. business and financing during this pandemic. Most businesses
found themselves off-guarded and ill equipped in the face of
Despite embracing single digit lending rate and uncertainty during potential recession. We stood beside our customers with tailor-made
corona pandemic, EBL recorded a meaningful growth of 2.36% in solutions and support to help them withstand this unforeseen shock.
profit after tax (PAT) to BDT 4,103 million in 2020 riding on prudent We worked closely with our industry peers and Bangladesh Bank
asset-liability management. Ensuring health and safety of our people in shaping policy responses appropriate for the business houses as
and customers and building better connections with customers have well as the overall economy.
been the cornerstone of whatever we have done during the year. We
remained watchful in maintaining asset quality, recovering classified We have partnered with Tradewind GmbH to offer secure and
and written off loans, mobilization of deposits, and rationalizing innovative trade finance solutions to our customers who are

42 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 43

Managing Director & CEO’s Review Confronting economic and financial challenges

Stewardship
The COVID-19 pandemic has adversely affected the global economy, and providing refinancing facilities with timely intervention in the
resulting in profound impact on business and financial performance, foreign exchange market which helped to maintain normalcy in
downward credit movement and low demand for lending. One year both the Taka and USD interbank markets. The record-breaking
into the pandemic life, economic recovery suffered a severe blow foreign exchange reserve during the lean period of COVID-19 was
and millions are facing unemployment following business closures. the upshot of government initiative of 2 percent cash incentive
At home, COVID-19 has also had its share of severity impacting
against inward remittances. The government in a prudential move
heavily our customers, our investors, our shareholders and the
rolled out stimulus packages worth more than one trillion Taka
communities we serve. The proactive and timely measures taken
to mitigate the impact of coronavirus pandemic on businesses
by government to revive the economy through debt moratoriums
and concessionary loan schemes under stimulus packages for and bring the economy back on track. The banking industry has
pandemic affected individuals and businesses are laudable. The been working since the outbreak of the pandemic hand in glove
accommodative monetary policy of Bangladesh Bank was also with the government and central bank at helping businesses and
aimed at stimulating the economy-lowering Bank Rate for the first individuals through this trying times towards economic recovery
time in 17 years, reducing CRR & repo rate, relaxing various policies and future growth.

COVID-19 response

Brave, prompt and coordinated response is the key to handle any them how to use them. We are also engaged with industry peers
crisis. As a bank we are doing our best to ensure safety of our and working closely with regulators including Bangladesh Bank
employees and customers and have been following government
in policy support appropriate for this difficult times. EBL is one of
and WHO Coronavirus safety protocols since the outbreak of the
pandemic. We are regularly reaching out to our customers and the first few banks in channeling government stimulus fund to
inspiring them to switch to online banking and also educating customers to help minimize damage, restart, and bounce back.

Delivering solid performance

In 2020, under extremely challenging conditions EBL has performed customers while maintaining regulatory compliance. We continue
well in key areas of its business activities. Our balanced growth to maximize wealth for our shareholders maintaining ROA of 1.22%,
has generated positive returns for the stakeholders. However, ROE of 15.04%, improving EPS to BDT 5.05 from BDT 4.94 and
due to global pandemic and single digit lending rate cap, our net proposing dividend 35% (cash-17.5% & stock-17.5%). Our strong
Ali Reza Iftekhar interest income in 2020 decreased by 27.31%, but we have tried
focus on quality of asset has driven the Bank to achieve an enviably
Managing Director & CEO to cover it up with non-interest income supported by investment
low NPL of 2.72% at the end of 2020, which is far below from the
income growth by 83.48% from 2019 that helped our operating
industry average. During this difficult times, a host of international
income to reach BDT 14,134 million in 2020, while profit after tax
was up by 2.36 % year-on-year reaching BDT 4,103 million backed and local awards is testimony to our commitment to excellence.
by less provision charged for loans, investment and other assets. For details, please go to the section- Stakeholders’ Information,
The Board devoted its time and energy providing guidance and Management Discussion and Analysis, Risk Management Report
direction to the Management to ensure uninterrupted service to our and Notes to the Financial Statements of this Annual Report.
In 2020, under extremely challenging conditions, EBL has
performed well in key areas of its business activities. Our Taking care of our employees

balanced growth has generated positive returns for the

Capacity building and enhancing skillset of our people is one and self-certification programs during the lockdown. We want to
stakeholders. This pandemic has taught us to be resilient, of our core organizational objectives. Our leadership initiatives develop simple ways of working and equip our colleagues with
adaptive, innovative and positive in the face of adversity and are aligned with our strategy and tailored to the individual the future skills they need. Measures are also taken to ensure
development. We have tried to keep our employees engaged in the utmost safety of our employees while performing their duties
we are confident to deliver performance in the coming days. learning and development activities through webinars, e-learning during COVID-19 pandemic.

44 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 45

Instilling a cost-conscious culture keeping ourselves within regulatory framework. Accordingly, we capital market exposure (22.03 % ≤ 25%), LCR-DBO (210.90% ≥100%)

Stewardship
complied with key regulatory ratios of the Bank (year-end position & NSFR-DBO (105.49%>100%) that clearly shows our commitment
shown) namely AD ratio-Bank (78.82% ≤ 87%), CRAR (15.23% to key stakeholders.
During this pandemic increasing cost awareness level throughout of cost rationalization. We made strong inroads in reducing our ≥12.5%), leverage ratio (5.97% ≥ 3%), MCO-DBO (13.51% ≤ 16.5%),
the bank has been crucial as business opportunities were, in operating expenses as a result of a combination of our cost-saving
many areas, shrinking. A special committee named Cost Olympic
programs and lower discretionary spending, which helped us Moving ahead with caution
Committee (COC) has been entrusted with responsibility to
provide strategic direction in instilling cost awareness culture in reduce our operating expenses and get cost-to-income ratio of
the company and at the same time come up with recommendation 45.58% at the end of the year.
We are alert to the challenges of the global pandemic situation complete upgrading our core banking platform to incorporate
and the uncertainties of future market environment. We latest advances in technology. We have a plan to further expand
Our approach to sustainability will remain proactive in managing costs and investment for our network as well as reach to unbanked people through
revenue growth where necessary. We are committed to serving agent banking, sub-branches, digital channels etc. We will
our customers well, increasing efficiency of our employees be putting emphasis on adapting to new customer norms,
We believe that fight against climate change is a collective journey use through digitalization of processes, use of solar power, green and rewarding our shareholders. Strengthening our digital analyzing customer preferences and changing business
and in the transition to a low-carbon future we would like to take banking channels and so on. As a leading commercial bank, we are capabilities will be our key focus area in 2021 and we hope to models accordingly.
our customers with us. In 2020, we made significant progress committed to funding projects that are eco-friendly and aspiring
towards achieving UN Sustainable Development Goals. We
to become energy efficient. We have also integrated Environment Vote of thanks
promoted financial inclusion through our agent banking and sub-
and Social Risk Management System to analyze the environmental
branch outlets, contributed towards women and student banking
and social risks of projects and promote financing for renewable
by arranging a number of webinars on education, gender, health
energy and projects to support the fight against climate change. We I extend my sincere gratitude to the Chairman of the Board of a continuous inspiration to achieve more and deliver excellence.
and social issues and developing low cost products for women
are ready to support our clients preparing to change their business Directors for his continuous support and the entire Board for their The journey that lies ahead is arduous and challenging, but with
entrepreneurs, deployment of sustainable energy sources resulting
valuable guidance, direction and patronage. My gratitude also goes our experience, skill, and resourcefulness we are confident to
in energy savings, waste disposal systems, reduction of paper models and make that transition.
out to the Governor and officials of Bangladesh Bank, Chairman
deliver performance.
and officials of Bangladesh Securities and Exchange Commission
Bonding with our customers and other regulatory bodies for their prudent guidance. I am very
thankful to my colleagues for their commitment and dedication
towards achieving a common goal even in the difficult times and
This pandemic has taught us to be resilient, adaptive, innovative digital onboarding facilities and capitalizing the digital tools driving the Bank forward. Last but not the least, my whole-hearted
and positive in the face of adversity. We have facilitated for customer acquisition. Our commitment to our customers appreciation goes to our valued shareholders, customers, business Ali Reza Iftekhar
customer engagement and ran multiple awareness programs is to provide more personalized services, create connected partners and other stakeholders for keeping faith in us and being Managing Director & CEO
using social media platforms to establish and maintain the experiences through all channels, and deepen relationship with
banker-customer bonding. We have started offering fully them in the future.

Digitalization in banking

The world around us has changed significantly in 2020. There has generation Firewall, Network Intrusion Prevention System (NIPS),
been a rapid shift from physical to digital banking. The increasing Adaptive Security Appliance (ASA), Endpoint Security, Intrusion
demand for digital products and services during the pandemic Prevention System (IPS)/ Intrusion Detection System (IDS), etc. Our
acted as a spur to our digital transformation. Customers are PCI-DSS certification for consecutive five years is a recognition of
now accustomed to this new normal banking. Our digitalization our constant effort to minimize vulnerabilities in cardholder data
objective is to provide customer comfort and reliability, create domain, which provides our customers with a peace of mind about
good customer experiences and deliver digital services that are using our payment cards. We have also adopted Digital Strategy
faster, more agile, cost-effective, personalized, and secure. But that prioritizes redesigning conventional banking processes as
at the same time we have increased our focus on cyber security digital processes, upgrading internal systems to be prepared to
issues. We have several preventive controls in place, i.e., Next- capitalize on changes in the regulatory environment.

Good governance and compliance

Good corporate governance provides the foundation for a healthy to growth path. Our utmost priority has always been to safeguard
organization. It sets the tone as to how the organization operates the interest of our depositors and shareholders. We continue to
and behaves. Our honorable Board of Directors plays a pivotal role work closely with the regulators to ensure compliance in every
in shaping governance structure and practices to drive the Bank aspect. Our focus during 2020 was to conduct businesses prudently

46 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 47

Directors’ Report 2020 and other financial soundness indicators (governance, asset quality, • 360-day special repo facility for bank and financial institutions.

Stewardship
capital adequacy etc.). During July-December 2020 banking sector’s • Instruction on maintaining status quo of loan classification as
performance indicators showed resilience which is reflected in fall of of 31 December 2019 without downgrading or classifying the
The Board of Directors is pleased to welcome you all to the 29th Annual General Meeting (AGM) of the Bank and present before you the Annual non-performing loans (NPLs), a moderation in capital adequacy and borrowers.
Report along with the Audited Financial Statements for the year 2020. A review of business and financial performance and the underlying profitability, an improvement in liquidity condition, and betterment
• Agricultural credit facility at a concession rate.
forces affecting these have been briefly pointed out. of provision maintenance. Due to loan moratorium facility provided
by Bangladesh Bank, the overall NPL ratio stood at 7.66% (including • Instruction for waiver of late payment fee/charge/penal
Offshore Banking Operation) at the end of December 2020. The capital interest/additional revenue or any other fee/charge due to
Global economic outlook medium scale manufacturing output, industry sector growth rate
to risk-weighted assets ratio (CRAR) was marginally moderated to delayed credit card bill payment.
sharply came down to 6.48% in FY 2020. The service sector impact
11.64% as of December 2020 compared to 11.94% in September 2020. • Implementation of government’s stimulus packages worth
The COVID-19 pandemic has triggered an unprecedented global was less severe than the industry sector which grew by 5.32% in FY
In 2020, RoA and RoE of the banking sector dropped to 0.25% and more than BDT 1.21 trillion mainly for export oriented industry,
economic crisis which is far worse than the 2008-09 global 2020 against 6.78% in FY 2019 as most of the leading sub-sector
4.28% compared to those of 0.43% and 6.83% respectively in 2019. large industries and service sector.
financial meltdown. World economy is estimated to have slowed activities decreased due to lockdown measures. However, the
down by 3.3% in 2020. To protect financial system and economy, agriculture sector maintained a solid growth amid this pandemic • Refinance Facilities under Stimulus Packages provided to
Bank deposits grew by 13.1% in December 2020 compared to
policymakers across the globe have taken unprecedented measures aided by the timely availability of inputs, favorable weather banks for disbursement to target sectors.
12.4% in September 2020 amid the pandemic riding on higher
to bring it on track. Though recovery in China has been faster conditions at the time of cultivation and harvesting and partial use remittance inflows. Loan disbursement from the stimulus • Additional 1% special general provision for COVID-19 on PBD
than expected, the global economy’s rebound to pre-pandemic of harvester machine. packages helped loans and advance of the banking industry to accounts.
level of activity remains prone to setbacks. After ease of lockdown grow marginally by 9.6% in September 2020 compared to 9% in • Setting cap on distribution of cash and stock dividend.
global trade started to pick up in June where China was a major The government of Bangladesh and Bangladesh Bank took a series
June 2020. However, this growth decelerated to 8.2% in December
contributor. In the second half of 2020 financial condition started to of timely and appropriate initiatives such as stimulus packages Banking sector has already been struggling with high volume
2020. Though public sector credit grew due to large flow of foreign
ease for advanced economies and for most emerging market and worth more than BDT 1.21 trillion, policy relaxations, low of NPL, weak corporate governance, major scams and various
loans and selling of national saving certificate, private sector
developing economies. This pandemic has increased inequality cost refinance schemes to support weaker segments of the irregularities. Banks played crucial role in implementing different
credit demand was slower. Private sector credit grew slowly
globally by pushing more people below poverty line mainly those economy and to ensure sufficient liquidity in the banking system. stimulus packages announced by the government. Managing
because of banks' cautiousness towards quality lending as well
who live on daily wage and are migrant workers. These policy initiatives paved the way for the economic recovery stressed assets and expediting the recovery process will be
as investors' stickiness to survival strategies during the COVID-19
of Bangladesh remaining at the forefront among the neighboring high priority for the banking sector in the post-moratorium era.
period instead of expanding their businesses. As the bank deposits
IMF projects that the global economy will grow by 6.0% in 2021. South Asian economies. However, CMSMEs, which is the backbone Moreover, constant supervision and vigilance are required for
Additional policy support announced for 2021, mainly in USA and grew faster than bank advances, the overall ADR fell from 74% at
of the country’s economy, is yet to get the desired momentum due channeling funds of the stimulus packages to the affected large
Japan, is expected to help in lifting economic activities in advanced the end of September 2020 to 72.7% at the end of December
to slower fund disbursement from stimulus packages. Annual industries, CMSME, and the agriculture sector.
economies with favorable spillover to trading partners. However, 2020; way below the maximum regulatory ceiling which adversely
average inflation rose to 5.65% in FY 2020 compared to 5.5% in
pace of recovery is likely to vary significantly across countries, affected the profitability of the banks. Economy and business outlook 2021
FY 2019. Broad money supply increased by 12.64% at the end of
depending on access to vaccine, effectiveness of policy support, FY 2020 driven largely by public sector borrowing from banking The liquidity condition of the banking system broadly remained To recover from the ongoing economic challenges caused by
exposure to cross-country spillovers, and structure of the crisis. system. Government’s revenue collection faced a large fall due to stable and sufficiently adequate. Bangladesh Bank’s easing COVID-19 pandemic, expansionary monetary policy has been
pandemic driven economic slowdown which resulted in 55.51% monetary policy stance, higher remittance flow, and government's
GDP growth (year- on- year, in percent) formulated for FY 2021 accommodating supporting needs while
increase of costly borrowing at the last quarter of FY 2020. stimulus packages ensured excess liquidity in the banking system. staying within targeted inflation rate of 5.5% for GDP growth
Particulars 2020 2021 p 2022 p Due to implementation of lending rate ceiling of 9% from 1 April target of 6.1%. Due to devastating impacts of the second wave of
Country’s external trade faced disruption due to restrictions on
2020, weighted average interest rates witnessed a significant the coronavirus pandemic on the battered economy, government
mobility imposed to curb spread of COVID-19. Due to sharper fall
World -3.3 6.0 4.4 decline both in lending and deposit. Moreover, excess liquidity in
of exports, current account deficit significantly widened with USD has set an achievable realistic target for FY 2021. Govt.-imposed
the banking sector due to pandemic driven weak credit demand led lockdown and travel restrictions for second wave of the pandemic
Advanced Economies -4.7 5.1 3.6 2,439 million at the end of FY 2020. Yet, the overall balance of
to sharp fall in the interest rate on lending. This induced the banks have impacted economic activities which could adversely affect
payment (BOP) experienced a surplus of USD 3,310 million during
Other Advanced Economies -2.1 4.4 3.4 to lower the interest rate of deposit. Weighted average deposit and livelihood and slow down the pace of economic recovery
last quarter of FY 2020 supported by record high financial inflows.
lending rates decreased from 5.51% and 9.58% in March 2020 to
USA -3.5 6.4 3.5 The inflow of remittance in FY 2020 increased by 10.87% over the
4.54% and 7.61% in December 2020, respectively. As global economies are opening up, exports are likely to bounce
FY 2019. Strong growth of wage earner’s remittance and financial
Euro Area -6.6 4.4 3.8 back in the near term. Likewise, FDI inflows are expected to upturn
inflows in the form of assistance from multilateral institutions and The banking sector, as a whole, was able to maintain the required by resuming the different development projects including continued
Emerging Market and development partners helped to reach a record foreign exchange level of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio
-2.2 6.7 5.0 collaboration with partner countries for investing in Bangladesh's
Developing Economies reserve of USD 42.97 billion at the end of December 2020. (SLR) and other liquidity ratios i.e. Liquidity Coverage ratio (LCR), different infrastructure projects. The government's stimulus
China 2.3 8.4 5.6 Net Stable Funding Ratio (NSFR) as on 30 September 2020. packages along with the restoration of business confidence is likely
Favored by the expansionary monetary policy and capital market
policy supports from regulators, the capital market bounced back to boost up public and private investment. Foreign exchange reserve
India -8.0 12.5 6.9 Some important initiatives taken by Bangladesh Bank in 2020 are
in 2020, which is visible in rising share prices, turnover, and will continue its uptrend provided that the economy gets support
as follows:
Source: IMF World Economic Outlook Update (April 2021); p for projection. market capitalization. The food production, remittance, the stimulus from strong growth of export and inflow of remittance. Recovery
package, the reopening, and the uptick in domestic demand and • Implementation of lending rate cap on 9%. of private sector credit growth is expected to grow along with the
Bangladesh economy: An overview exports put the country on the path of recovery. • Slashing cash reserve ratio (CRR) for both domestic and growth of public sector borrowing mainly for implementing annual
offshore banking operation. development program (ADP) and supporting stimulus packages for
Despite facing COVID-19 pandemic induced challenges in all
Banking industry in 2020 the pandemic hit economy.
economic sectors, Bangladesh economy managed a 5.24% GDP • Reduction of bank rate and repo rate and increase of the
growth in FY 2020 while growth rates in neighboring countries The banking industry in Bangladesh is highly fragmented into ceiling of ADR. Although overall NPLs have declined, the bad loans are expected
like India, Pakistan, and Sri-Lanka are expected to be negative in state-owned commercial banks (SCBs) and local and foreign private • Payment by deferral (PBD) facility on loan payments for 2020 to rise when the moratorium facility will be lifted. Bad loan recovery
2020. Being suffered from substantial production loss in large and commercial banks (PCBs) with a marked difference in profitability without downgrading or classifying the borrowers. will be top priority for the banking sector in the post-moratorium era.

48 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 49

Recent successful results for vaccine development against mobilization of deposits, and rationalizing costs. A brief review of ROA and ROE have decreased in 2020 due to higher growth of equity Appropriation of profit

Stewardship
COVID-19 has raised hopes for humanity which will impact the financial performances of the Bank (solo) are as follows: compared to growth of PAT. Cost to income ratio has increased
global as well as domestic economy positively. However, renewed mainly due to decrease of operating income by 3%. The Capital to Profit after tax (PAT) of the Bank stands at BDT 4,103 million during
waves and new variants of the virus can elevate downside risk and • Net interest income (NII) which contributed 42% of total risk weighted assets ratio (CRAR) has increased to 15.23% in 2020 the year including net deferred tax income of BDT 52 million out
the economic recovery could be uneven. Weaker than expected operating income decreased by 27% in 2020 compared to last from 14.74% in 2019. Following table presents some of the key of which BDT 79 million arises on specific provision made against
growth in the export destinations mainly in USA and EU region will year (interest income decreased by 15% and interest expense financial ratios: Bad/Loss loans and cannot be distributed as dividend as per BRPD
directly affect the recovery of Bangladesh economy. According to decreased by 8%). Circular No.11dated 12 December 2011 of BB. As the paid-up capital
World Bank’s forecast Bangladesh economy is forecasted to grow • Non-interest income which contributed rest 58% increased by Bank and statutory reserve of the Bank is equal, no fund is required
by 1.6% in 2021. All sector of the country’s economy will not be able 27% mainly due to increase of income from investment by 83% Particulars to transfer to statutory reserve in 2020. Thus, cumulative profit
to recover in same pace. Stimulus packages and liquidity support Year 2020 Year 2019 available for distribution stands at BDT 6,520 million out of which
and other operating income by 39% in 2020 compared to 2019.
will help large industries and public organizations to recover at a the Board of Directors recommended 17.5% cash dividend and 17.5%
• Compared to last year, operating income decreased by 3% Return on average equity (PAT/
faster pace while the CMSME enterprises will lag behind. Hence 15.04% 16.52% stock dividend amounting to BDT 2,841 million for the year 2020.
and operating expense increased marginally by only 1%. As Average Equity)
policy support is required to absorb the need of small and micro
a consequence, operating profit of the Bank decreased by 6% Utilization of proposed stock dividend
enterprises, agriculture and young and new entrepreneurs. Return on average assets (PAT/
and reached at BDT 7,692 million in 2020. 1.22% 1.30%
Bangladesh Bank has issued SMESPD circular no. 04 dated 29 Average Assets)
Stock dividend has been recommended to strengthen the capital
March 2021 instructing commercial banks to constitute their own • Total provision decreased by 49% in 2020 compared to last
Cost to income ratio (operating base of the Bank in order to support projected business growth and
and separate “Start-up Fund” for lending to the startup companies year. General provision deceased mainly due to provision 45.58% 43.76%
expense/operating income) also to improve certain regulatory ratios.
along with government’s BDT 5 billion refinance fund. This will be relaxation on consumer finance from 5% to 2%. In addition, we
collateral free fund at a very concession rate. have maintained special general provision of BDT 602 million Capital to risk weighted assets ratio 15.23% 14.74% Capital adequacy status under Basel III
for COVID-19 to comply with regulatory requirement. Specific
Financial performance highlights of EBL provision decreased by 39% due to no new classification and NPL ratio 2.72% 3.35% Bank’s Capital to Risk Weighted Assets Ratio (CRAR) remains
Banking industry passed a challenging year in terms of governance, down gradation of loans, and other provision decreased by consistently within the comfort zone against the requirement of
114% mainly due to provision released for quoted securities EPS (BDT) 5.05 4.94
capital adequacy, profitability and soundness in 2020. Despite 12.5% (Minimum total capital ratio plus capital conservation buffer)
intensified challenges, EBL managed its portfolio efficiently closing as market price increased. Besides, BDT 77 million have been and ended at 15.23% as on 31 December 2020. For details please
Price to book value ratio 100.86% 105.41%
the year 2020 with an NPL of 2.72% (3.35% in 2019) which is lower maintained as other provision for “Start-up Fund”. see Market Discipline (Basel III) section of this annual report.
than that of industry average (7.66% as of December 2020). It is • Total tax provision increased by 15% in 2020 compared to last
to be mentioned here that, relaxation of classification criteria by year mainly due to decrease of deferred tax income as new History of raising capital
Bangladesh Bank helped in reduction of new classification and classification and down gradation of loans were halted for As on the reporting date (31-12-2020), the Bank had paid up capital of BDT 8,117,995,470 of which 84.07% was raised through stock dividend.
down-gradation of loans. 2020 as per Bangladesh Bank’s instruction. The history of raising paid up capital to BDT 8,117.99 million as of year-end 2020 is presented below:
The prime focus during the year has been upholding service excellence, • Finally Bank’s profit after tax (PAT) increased by BDT 94
Cumulative Paid up
maintaining asset quality, recovering classified and written off loans, million or 2.36% in 2020 compared to 2019. AGM Date Particulars No. of Shares* Volume in Taka
Capital in BDT

Following table summarizes comparative financial performance of EBL both as a Group and as the Bank: 9 December 1993 As per MOA & AOA 60,000,000 600,000,000 600,000,000
 BDT in million 5 August 2001 20% Bonus Share 12,000,000 120,000,000 720,000,000
Group Bank
Particulars % Change % Change 8 December 2003 15% Bonus Share 10,800,000 108,000,000 828,000,000
2020 2019 2020 2019
12 June 2007 25% Bonus Share 20,700,000 207,000,000 1,035,000,000
Net interest income (NII) 6,052 8,277 -27% 5,930 8,159 -27%
25 May 2008 34% Bonus Share 35,190,000 351,900,000 1,386,900,000
Non-interest income 8,515 6,743 26% 8,203 6,439 27%
25 May 2008 Right Share 2:1 at Par 69,345,000 693,450,000 2,080,350,000
Total operating income 14,567 15,020 -3% 14,134 14,597 -3%

Total operating expense 6,672 6,642 0% 6,441 6,387 1% 28 April 2009 20% Bonus Share 41,607,000 416,070,000 2,496,420,000

Operating profit (Profit before provision and tax) 7,895 8,378 -6% 7,692 8,210 -6% 30 March 2010 17% Bonus Share 42,439,140 424,391,400 2,920,811,400
Specific provision 928 1,255 -26% 765 1,255 -39% 30 March 2011 55% Bonus Share 160,644,627 1,606,446,270 4,527,257,670
General provision (274) 56 -585% (274) 56 -585% 29 March 2012 35% Bonus Share 158,454,018 1,584,540,180 6,111,797,850
Special general provision for COVID -19 602 - - 602 - -
19 May 2016 15% Bonus Share 91,676,967 916,769,670 7,028,567,520
Other provision [charged/(released)] (101) 723 -114% (92) 643 -114%
27April 2017 5% Bonus Share 35,142,837 351,428,370 7,379,995,890
Total provisions 1,155 2,035 -43% 1,001 1,954 -49%
23 May 2019 10% Bonus Share 73,799,958 737,999,580 8,117,995,470
Profit before tax for the year 6,740 6,343 6% 6,691 6,256 7%
*Face value per share of BDT 10 has been considered in all the cases to conform to comparability.
Tax provision for the year 2,560 2,353 9% 2,588 2,248 15%

Profit after tax (PAT) 4,180 3,990 5% 4,103 4,008 2%

Earnings per share (EPS) 5.15 4.92 5% 5.05 4.94 2%

50 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 51

Status of asset quality Financial reporting • We donated BDT 100 million to the Prime Minister's Relief and

Stewardship
Welfare Fund for flood affected regions in Bangladesh.
As on 31 December 2020, NPL ratio of the banking industry stood at 7.66% which was 9.32% (without OBO) in December 2019. The NPL ratio of • Proper books of account as required by law have been
EBL was 2.72% at the end of 2020 which was 3.35% at the end of 2019. The status of unclassified and classified loan of the Bank is as follows: maintained by EBL. • Donated 75,000 pieces (costing BDT 21.50 million) of blankets
to Prime Minister’s Relief & Welfare Fund through Bangladesh
• Appropriate accounting policies have been consistently Association of Banks (BAB) for distribution among cold-hit
BDT in million
applied in preparation of the financial statements. people. We have also donated another BDT 2.6 million for
Particulars 31-12-2020 31-12-2019 % Change • Accounting estimates and underlying assumptions are made distribution of 9000 pcs of blankets among cold-hit people.
Unclassified loans: 222,717 224,280 -0.70% on reasonable ground applying prudent judgment, and are • We have given BDT 4.5 million as scholarship to disadvantaged
reviewed on an ongoing basis. but meritorious students of University of Dhaka through Dhaka
Standard (Including staff loan) 220,984 221,568 -0.26%
• The Financial Statements (FS) of the Bank are prepared in University Alumni Association (DUAA).
Special Mention Accounts (SMA) 1,733 2,712 -36.10% accordance with applicable International Financial Reporting • We have donated BDT 50 million to Prime Minister's Relief
Classified loans: 6,226 7,771 -19.88% Standards (IFRSs) and relevant circulars/instructions issued by & Welfare Fund for providing PPE/Testing Kits/Respiratory
Bangladesh Bank (BB) and any departure from IFRS due to BB
equipment as response to pandemic through BAB.
Sub-standard (SS) 1,033 1,122 -7.98% regulation has been adequately disclosed in the notes to the FS.
• Donated BDT 3.75 million to BIBM for construction of proposed
Doubtful (DF) 287 372 -22.66% • A discussion on related party transactions has been stated
15 storied building of BIBM.
Bad/loss (BL) 4,906 6,278 -21.84% in the ‘Corporate Governance Report’ and a statement with
amount of related party transactions has been presented in Bangladesh Bank has issued BRPD Circular no. 09 dated 26 April
Total loans 228,944 232,051 -1.34% the Annexure C1 of the FS 2020. 2021 instructing commercial banks to spend 1% of the net income
of 2020 in addition to planned CSR expenditure during 2021 for the
NPL % 2.72% 3.35%   • Being responsible for preparation and fair presentation of the
people who have been severely affected by the pandemic. EBL will
FS, the management of the Bank asserts that the FS prepared
comply with the circular accordingly. However, the said additional
by the management as at and for the year ended 31 December
expenditure on CSR can be adjusted with the CSR expenditure to be
Management discussion and analysis • The Audit Committee of the Board reviews the internal 2020 present fairly, in all material respects, its state of affairs,
control findings identified by the Internal Audit of the Bank, incurred for the period from 2022 to 2024.
the results of its operations, cash flows and changes in equity.
A separate section titled ‘Management discussion and analysis’ Inspection Team of Bangladesh Bank, External Auditors and
has been presented in page no. 155-187. Under this section, a Management, and evaluates the adequacy and effectiveness of • There is no significant doubt upon the Bank’s ability to Contribution to national exchequer
comparative analysis of financial performance (2016-2020) of the the risk management and internal control systems. continue as a going concern. EBL has neither intention nor
EBL regularly pays corporate tax on time, sometime even before it
Bank has been presented with analytics. A brief highlight of EBL the need to liquidate or curtail materially the scale of its
• The Board of Directors holds meetings at suitable intervals operations. Hence, the financial statements of the Bank have falls due if demanded by the tax authority. We also deposit excise
business units namely Corporate Banking, Retail & SME Banking
with senior management, internal auditors, external auditors been prepared as per going concern basis and the Bank will duty, withheld tax and VAT to govt. exchequer on time deducted from
and Treasury has been presented along with strategic outlook. In
and the Audit Committee for evaluating the effectiveness of continue to operate for the foreseeable future. customers, employees’ salary as well as on bills from third parties
pursuance of an inorganic growth route and to open up diversified
earnings stream, EBL established or acquired four subsidiaries, all internal control system and provides necessary guidance. including vendors. During the calendar year 2020 we contributed
Compliance with corporate governance guidelines BDT 7,462.65 million to national exchequer as tax, VAT and excise
of them fully owned, till the reporting date i.e. 31 December 2020.
• The internal audit department has direct access to the Audit duty. We paid advance corporate tax of BDT 3,582.47 million while
A brief review of subsidiaries business during 2020 also has been As a responsible corporate citizen, EBL duly complied with
Committee as and when required to ensure submission of deposited withheld tax of BDT 2,928.97 million, VAT of BDT 598.80
presented under this section. the provisions of corporate governance guidelines issued by
internal audit findings to the Audit Committee without any
Bangladesh Securities and Exchange Commission (BSEC). The million and Excise Duty of BDT 352.41 million during the year 2020.
management intervention.
Internal control system compliance status of EBL on the guidelines has been presented in
On behalf of the Board of Directors
• Self-Assessment of Anti-Fraud Internal Controls is carried out the section of ‘Corporate Governance Report’. Also, K.M. HASAN &
Robust internal control system helps EBL to ensure achieving goals on half-yearly basis and is sent to Bangladesh Bank as per CO., Chartered Accountants, has certified the compliance status of
and aspirations sustainably. This control system also ensures that requirement of DOS Circular Letter No. 10 dated 09 May 2017 EBL on the BSEC’s corporate governance guidelines during 2020
the Bank complies with local laws and regulations as well as policies, issued by BB after receiving compliance confirmation from which is mentioned in page 106 of this annual report.
plans, internal and external rules, guidelines and procedures, and respective stakeholders.
subsequently decrease the risk of unexpected loss or damage to the
CSR activities
Bank. The Board has delegated the responsibility of overall supervision Risk management Md. Showkat Ali Chowdhury
of internal control system to Audit Committee of the Board. The key As a socially responsible corporate, EBL continued to be engaged in Chairman of the Board of Directors
functionalities that have been established in reviewing adequacy and The Risk Management Committee (RMC) of the Board reviews a number of CSR activities throughout the year, including a number
integrity of the system of internal control are as follows: and monitors the overall risk management system of the Bank of donations towards charitable causes. Dhaka, 28 April 2021
and updates to the Board from time to time. Risk management
• Different committees have been formed consisting of relative functions are subject to continuous scrutiny of Internal Control &
stakeholders with expertise on the subject matter to assist the Compliance Division (ICCD) and supervision of Risk Management
Board in guiding the Bank’s operation in line with corporate Division (RMD) to ensure appropriateness and integrity of the risk
mission, vision and strategies. management mechanism.

• The internal audit department of the Bank checks for The risk management system of EBL has been described in “Risk
compliance with policies and procedures and the effectiveness Management Report” section of this annual report. Also the major areas
of the internal control system on regular basis and highlights focused by RMC in 2020 have been presented in “Report of the Risk
significant findings in respect of any non-compliance. Management Committee of the Board” section of this annual report.

52 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 53

 STAKEHOL Communication with Stakeholders

Stakeholders' Information
Stakeholders Key concerns Mode of communication Frequency

Sustainable growth Company website, annual report Continuous process, annually

Financial performance Annual report, financial statements Quarterly, semi-annually, yearly

STAKEHOLDERS'
Corporate governance Annual report Annually

DERS' INF
Risk management Annual report Annually
Shareholders/
Business expansion plan Board meeting As required
Investors
Meetings, periodic visits, mails/
Relationship As required
telephonic conversation

INFORMATION
Company information Website of EBL, annual report Continuous process, annually
Awareness mail, cultural programs,
Work life balance As required
monitoring
Diversity and career progression Different engagement programs As required
Performance evaluation and
Letters, arranging programs Quarterly, semi-annually, annually
rewards
Employees
Exams, interview, training
Recruitment and retention programs, financial and non- As required

ORMATION
financial benefits
HR information HR link (Intranet) Continuous
Quality service Relationship managers Continuous
Privacy and information security Mails, SMS, newsletter As required
Dispute resolution Direct customer feedback On a regular basis
Product information Website, call center Continuous
Different channels- Branches,
Customers sub-branches, agent banking, call
Affordability and convenience Continuous
center, priority center, ATM, Internet
Banking, Skybanking and others
Mails, meet up, arranging different
Relationship with customers On a regular basis
programs for customers
Compliance with regulations Submission of returns and reports Within the prescribed deadline
Awareness and knowledge Training and workshops As required
Communication Telephonic conversations, emails, visits On a regular basis
Regulatory bodies Meeting and discussion with
and government Addressing of key issues senior management and respective As required
regulators
Meetings, telephone/mails/letters
Relationship with suppliers On a regular basis
conversation, periodic visits
Regular communication, periodic
Networking On a regular basis
visits
Business partners
Future business opportunities Meetings, on site visits As required
Interact through branches, agent
Financial inclusion banking, sub-branches, internet On a regular basis
banking, social media, mail
Ethics and code of conduct Website, annual report On a regular basis, annually
Website, social media, annual
Sustainability initiatives On a regular basis, annually
Society report
Annual report, media
Community investment Annually, on demand
advertisement

54 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 55

Financial Highlights Five-Year Progression

Stakeholders' Information
BDT in million BDT in million

Group Bank Particulars 2020 2019 2018 2017 2016

Particulars Balance sheet metrics
2020 2019 Change (%) 2020 2019 Change (%)
Cash in hand and bank 28,702 48,647 33,297 32,152 25,771
Performance during the year
Investment 63,949 39,797 27,720 24,361 21,449
Net interest income 6,052 8,277 -26.88% 5,930 8,159 -27.31%
Loans and advances 228,944 232,051 209,306 184,027 152,084
Non interest income 8,515 6,743 26.28% 8,203 6,439 27.41%
Fixed assets 7,711 7,349 6,637 5,923 5,940
Operating income 14,567 15,020 -3.02% 14,134 14,597 -3.18% Non-banking assets 106 109 134 134 154
Profit before provisions 7,895 8,378 -5.76% 7,692 8,210 -6.31% Total assets 336,936 335,163 282,451 253,068 211,185
Profit after tax 4,180 3,990 4.76% 4,103 4,008 2.36% Borrowing 44,286 50,821 46,732 50,998 39,061
Net operating cash flow 6,025 19,191 -68.60% 977 17,922 -94.55% Deposits 242,358 240,164 199,629 167,348 140,284

Net operating cash flow per share (not restated) 7.42 23.64 -68.60% 1.20 22.08 -94.55% Other liabilities 21,316 18,611 13,124 13,434 11,268
Shareholders' equity 28,976 25,567 22,966 21,586 20,572
Total Liabilities and Shareholders' Equity 336,936 335,163 282,451 253,068 211,185
Year end financial position
Statutory liquidity reserve ratio (SLR) (at close of the year) 21.84% 13.97% 13.79% 14.83% 14.81%
Loans and advances 230,545 239,095 -3.58% 228,944 232,051 -1.34%
Cash reserve ratio (CRR) (at close of the year) 4.56% 5.63% 5.69% 7.33% 6.70%
Investments 66,016 42,066 56.93% 63,949 39,797 60.69%
Liabilities to shareholders' equity (times) 10.63 12.11 11.30 10.72 9.27
Deposits 241,295 239,980 0.55% 242,358 240,164 0.91% Interest bearing assets 301,684 292,905 247,935 221,798 183,761
Shareholders' equity 29,449 25,962 13.43% 28,976 25,567 13.33% Earning assets 307,845 299,607 254,115 227,008 188,681
Total assets 339,508 338,201 0.39% 336,936 335,163 0.53% Earning assets to total assets 91.37% 89.39% 89.97% 89.70% 89.34%
Total off-balance sheet items 104,060 99,781 117,629 101,278 75,576
Information per ordinary share AD Ratio - DBO 74.13% 77.20% 83.08% 83.06% 80.45%

Earmings per share (BDT) Not restated 5.15 4.92 4.76% 5.05 4.94 2.36%
Income statement metrics
Price earning ratio (times) Not restated 6.99 6.75 3.51% 7.12 6.72 5.94%
Net interest income (excluding investment income) 5,930 8,159 7,506 5,745 5,529
Net asset value per share (BDT) Not restated 36.28 31.98 13.43% 35.69 31.49 13.33%
Income from investments 5,049 2,752 2,318 3,415 3,315
Market price per share (BDT) 36.00 33.20 8.43% 36.00 33.20 8.43%
Fees, commission, brokerage and other operating income 3,155 3,687 3,315 3,241 2,636
Operating income 14,134 14,597 13,139 12,401 11,481
Ratios (%) Operating expense 6,441 6,387 5,995 5,605 5,063
Capital to RWA ratio (CRAR) (as per Basel III) 15.03% 14.55% 7.91% 15.23% 14.74% 3.34% Profit before provisions 7,692 8,210 7,144 6,796 6,418
Non performing loans 2.92% 3.36% -13.19% 2.72% 3.35% -18.79% Provision charged for loans, investment and other assets (net off w/off recovery) 1,001 1,954 2,558 2,739 2,019
Cost to income ratio 45.80% 44.22% 3.57% 45.58% 43.76% 4.15% Profit before tax (PBT) 6,691 6,256 4,586 4,057 4,400
Profit after tax (PAT) 4,103 4,008 3,081 2,405 2,656

Financial Goals and Performance (Bank) Capital metrics

Authorised capital 12,000 12,000 12,000 12,000 12,000

Financial Goals and Performance (Bank) Goals 2021 Actual 2020 Actual 2019 Paid up capital 8,118 8,118 7,380 7,380 7,029
Total Risk weighted assets (RWA) 217,654 207,437 202,655 165,435 148,811
Capital to risk weighted assets ratio (CRAR) 15% Plus 15.23% 14.74% Tier-1 Capital 23,467 20,719 18,908 16,943 16,078
Tier-2 Capital 9,678 9,850 5,740 6,358 6,394
Return on average equity (ROE) 14% Plus 15.04% 16.52%
Minimum Capital Requirement (MCR) 21,765 20,744 20,266 16,544 14,881
Return on average assets (ROA) 1% Plus 1.22% 1.30% Total Regulatory capital (Tier 1 and Tier 2) 33,144 30,569 24,648 23,302 22,472
Capital to risk weighted assets ratio (CRAR) 15.23% 14.74% 12.16% 14.09% 15.10%
Cost to income ratio Less than 45% 45.58% 43.76%
Tier-1 Capital to RWA 10.78% 9.99% 9.33% 10.24% 10.80%
NPL (%) Less than 3.70% 2.72% 3.35% Tier-2 Capital to RWA 4.45% 4.75% 2.83% 3.84% 4.30%
Leverage Ratio 5.97% 5.28% 5.26% 5.59% 6.35%
Year-end deposits (BDT in million) 270,858 242,358 240,164
Liquidity Coverage Ratio (LCR) - DBO 210.90% 338.22% 127.67% 113.35% 103.70%
Year-end loans and advances (BDT in million) 255,697 228,944 232,051 Net Stable Funding Ratio (NSFR) - DBO 105.49% 114.45% 104.07% 102.82% 102.60%

56 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 57

 BDT in million
Horizontal Analysis

Stakeholders' Information
Particulars 2020 2019 2018 2017 2016
Asset quality metrics Balance Sheet
Non performing/classified loans (NPLs) 6,226 7,771 4,926 4,600 4,096
General provision for loans (cumulative) 3,678 3,350 3,290 2,960 2,546 2020 2019 2018 2017 2016
Specific provision for loans (cumulative) 7,499 6,009 4,118 4,379 3,475 Particulars
BDT 'M ∆% BDT 'M ∆% BDT 'M ∆% BDT 'M ∆% BDT 'M
NPL Ratio 2.72% 3.35% 2.35% 2.50% 2.69%
Property and Assets
NPL coverage ratio (Specific provision + General Provision) / Gross NPL 179.51% 120.42% 150.39% 159.52% 146.99%
Cash in hand and balances with
15,699 -20.27% 19,690 20.52% 16,338 14.08% 14,321 17.40% 12,199
Bangladesh Bank and its agent bank(s)
Trade business metrics (DBO) Balances with other banks and
13,003 -55.09% 28,957 70.75% 16,959 -4.89% 17,831 31.38% 13,572
Export 124,926 137,379 128,235 98,493 91,834 financial institutions
Import (LC) 158,110 160,011 167,218 156,994 121,421 Money at call and short notice 60 -89.90% 594 100.00% - - - -100.00% 100
Investments 63,949 60.69% 39,797 43.57% 27,720 13.79% 24,361 13.58% 21,449
Guarantee 12,601 7,572 17,664 12,609 8,508
Loans and advances 228,944 -1.34% 232,051 10.87% 209,306 13.74% 184,027 21.00% 152,084
Fixed assets 7,711 4.92% 7,349 10.73% 6,637 12.06% 5,923 -0.29% 5,940
Efficiency ratios Other assets 7,464 12.81% 6,616 23.50% 5,357 -17.21% 6,471 13.77% 5,688
Cost of fund (interest expense / simple average borrowing and deposits) 4.76% 5.58% 5.30% 4.35% 4.75% Non banking assets 106 -2.91% 109 -18.86% 134 - 134 -13.00% 154
Return on average equity (ROE) 15.04% 16.52% 13.83% 11.41% 12.94% Total Assets 336,936 0.53% 335,163 18.66% 282,451 11.61% 253,068 19.83% 211,185
Return on average assets (ROA) 1.22% 1.30% 1.15% 1.04% 1.33%
Liabilities and Equity
Weighted average interest rate of loan (year-end) (A) 8.22% 10.83% 10.44% 9.47% 9.98%
Borrowing from banks, financial
Weighted average interest rate of deposits (year-end) (B) 3.70% 6.16% 5.54% 5.06% 4.87% 44,286 -12.86% 50,821 8.75% 46,732 -8.36% 50,998 30.56% 39,061
institutions and agents
Spread (C = A - B) 4.52% 4.67% 4.90% 4.41% 5.11% Deposits and other accounts 242,358 0.91% 240,164 20.31% 199,629 19.29% 167,348 19.29% 140,284
Cost to income ratio 45.58% 43.76% 45.63% 45.20% 44.10% Other liabilities 21,316 14.53% 18,611 41.81% 13,124 -0.10% 13,137 16.58% 11,268
Total Liabilities 307,960 -0.53% 309,596 19.31% 259,485 12.10% 231,482 21.44% 190,614

Share based metrics

Shareholders' Equity
Earnings per share (EPS) in BDT (Not restated) 5.05 4.94 4.17 3.26 3.78
Paid-up capital 8,118 0.00% 8,118 10.00% 7,380 0.00% 7,380 5.00% 7,029
Operating profit per share in BDT (Not restated) 9.48 10.11 9.68 9.21 9.13 Statutory reserve 8,118 0.00% 8,118 10.00% 7,380 0.00% 7,380 5.55% 6,992
Market price per share (BDT) as on close of the year at DSE 36.00 33.20 36.00 51.10 29.00 General reserve 603 0.00% 603 0.00% 603 364.23% 130 0.00% 130
Price earning ratio (times) 7.12 6.72 8.62 15.68 7.67 Other reserve 3,552 17.21% 3,031 2.21% 2,965 -19.34% 3,676 0.18% 3,669
NAV (book value) per share in BDT (Not restated) 35.69 31.49 31.12 29.25 29.27 Surplus in profit and loss account 8,584 50.66% 5,697 22.85% 4,638 53.58% 3,020 9.73% 2,752
Total Shareholders' Equity 28,976 13.33% 25,567 11.33% 22,966 6.40% 21,586 4.93% 20,572
Market capitalization (at close of year) 29,225 26,952 26,568 37,712 20,383
Total Liabilities and
Market price to NAV per share (times) 1.01 1.05 1.16 1.75 0.99 336,936 0.53% 335,163 18.66% 282,451 11.61% 253,068 19.83% 211,185
Shareholders' Equity

Dividend payment metrics

Dividend (%) 35 15 30 20 25
-Cash (%) 17.5 15 20 20 20
-Stock (%) 17.5 - 10 - 5 Profit and Loss Account
Dividend per share (DPS) 3.50 1.50 3.00 2.00 2.50
2020 2019 2018 2017 2016
Dividend Cover (times) 1.44 3.29 1.39 1.63 1.51
Particulars
Dividend Payout ratio (DPS / EPS) (%) 69.26% 30.38% 71.86% 61.38% 66.14% BDT 'M ∆% BDT 'M ∆% BDT 'M ∆% BDT 'M ∆% BDT 'M
Dividend Yield (%) 9.72% 4.52% 8.33% 3.91% 8.62% Interest Income 19,667 -15.09% 23,164 16.86% 19,821 37.66% 14,399 6.30% 13,546
Dividend Unclaimed Amount 83.54 73.41 68.34 57.37 50.72 Interest paid on deposits and
(13,737) -8.45% (15,005) 21.84% (12,315) 42.30% (8,654) 7.96% (8,016)
borrowings
Other information (actual figure) Net Interest Income 5,930 -27.31% 8,159 8.69% 7,506 30.66% 5,745 3.89% 5,529
Number of branches 85 85 85 84 82 Non-interest Income 8,203 27.41% 6,439 14.30% 5,633 -15.37% 6,656 11.83% 5,952
Number of sub-branches 5 3 - - - Total operating income 14,134 -3.18% 14,597 11.10% 13,139 5.96% 12,401 8.01% 11,481
Number of agent banking outlet 29 26 2 - - Total operating expenses 6,441 0.85% 6,387 6.54% 5,995 6.96% 5,605 10.71% 5,063

Number of CDM 67 61 59 54 58 Profit before provisions 7,692 -6.31% 8,210 14.92% 7,144 5.13% 6,796 5.88% 6,418
Provision for loans and off-
Number of ATM 220 207 200 200 202 1,170 -10.77% 1,311 -40.06% 2,188 -21.18% 2,775 21.33% 2,288
balance sheet exposures
No. of ATM Booths 208 198 188 188 191 Other provision (169) -126.24% 643 73.43% 370 -1114.64% (37) -86.42% (269)
Number of permanent employees 1,896 1,892 1,715 1,594 1,584 Total provisions 1,001 -48.74% 1,954 -23.62% 2,558 -6.61% 2,739 35.68% 2,019
Number of deposit accounts 631,516 620,793 569,552 532,208 426,685 Profit before tax for the year 6,691 6.95% 6,256 36.42% 4,586 13.05% 4,057 -7.79% 4,400
Number of loan Accounts 163,913 163,795 180,548 222,986 305,611 Total provision for taxation 2,588 15.13% 2,248 49.36% 1,505 -8.88% 1,652 -5.23% 1,743
Number of foreign correspondents 512 489 592 522 727 Profit after tax for the year 4,103 2.36% 4,008 30.10% 3,081 28.11% 2,405 -9.47% 2,656

58 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 59

Vertical Analysis Graphical Presentation

Stakeholders' Information
Balance Sheet
Market price per share (close at year-end) (BDT) Price earning ratio (Times)
2020 2019 2018 2017 2016
Particulars
BDT 'M Mix (%) BDT 'M Mix (%) BDT 'M Mix (%) BDT 'M Mix (%) BDT 'M Mix (%) 2020 2020
Property and Assets 36.00 7.12
Cash in hand and balances
with Bangladesh Bank and its 15,699 4.66% 19,690 5.87% 16,338 5.78% 14,321 5.66% 12,199 5.78% 2019 2019
agent bank(s) 33.20 6.72
Balances with other banks
13,003 3.86% 28,957 8.64% 16,959 6.00% 17,831 7.05% 13,572 6.43%
and financial institutions 2018 2018
Money at call and short notice 60 0.02% 594 0.18% - - - - 100 0.05% 36.00 8.62
Investments 63,949 18.98% 39,797 11.87% 27,720 9.81% 24,361 9.63% 21,449 10.16%
Loans and advances 228,944 67.95% 232,051 69.24% 209,306 74.10% 184,027 72.72% 152,084 72.01% 2017 2017
Fixed assets 7,711 2.29% 7,349 2.19% 6,637 2.35% 5,923 2.34% 5,940 2.81% 51.10 15.68
Other assets 7,464 2.22% 6,616 1.97% 5,357 1.90% 6,471 2.56% 5,688 2.69%
2016 2016
Non banking assets 106 0.03% 109 0.03% 134 0.05% 134 0.05% 154 0.07%
29.00 7.67
Total Assets 336,936 100.00% 335,163 100.00% 282,451 100.00% 253,068 100.00% 211,185 100.00%

Liabilities and Equity

Borrowing from banks, financial
44,286 13.14% 50,821 15.16% 46,732 16.55% 50,998 20.15% 39,061 18.50%
institutions and agents Earnings per share (BDT) Shareholders' equity (BDT in million)
Deposits and other accounts 242,358 71.93% 240,164 71.66% 199,629 70.68% 167,348 66.13% 140,284 66.43%
2020 2020
Other liabilities 21,316 6.33% 18,611 5.55% 13,124 4.65% 13,137 5.19% 11,268 5.34%
Total Liabilities 307,960 91.40% 309,596 92.37% 259,485 91.87% 231,482 91.47% 190,614 90.26%
5.05 28,976
2019 2019
Shareholders' Equity 4.94 25,567
Paid-up capital 8,118 2.41% 8,118 2.42% 7,380 2.61% 7,380 2.92% 7,029 3.33%
Statutory reserve 8,118 2.41% 8,118 2.42% 7,380 2.61% 7,380 2.92% 6,992 3.31% 2018 2018
General reserve 603 0.18% 603 0.18% 603 0.21% 130 0.05% 130 0.06% 4.17 22,966
Other Reserve 3,552 1.05% 3,031 0.90% 2,965 1.05% 3,676 1.45% 3,669 1.74%
2017 2017
Surplus in profit and loss
8,584 2.55% 5,697 1.70% 4,638 1.64% - 1.19% 2,752 1.30% 3.26 21,586
account
Total Shareholders' Equity 28,976 8.60% 25,567 7.63% 22,966 8.13% 21,586 8.53% 20,572 9.74%
2016 2016
Total Liabilities and
336,936 100.00% 335,163 100.00% 282,451 100.00% 253,068 100.00% 211,186 100.00% 3.78 20,572
Shareholders' Equity

Profit and Loss Account

2020 2019 2018 2017 2016 Return on average equity (Percentage) Return on average assets (Percentage)
Particulars
BDT 'M Mix (%) BDT 'M Mix (%) BDT 'M Mix (%) BDT 'M Mix (%) BDT 'M Mix (%) 2020 2020
Interest Income 19,667 70.57% 23,164 78.25% 19,821 77.87% 14,399 68.39% 13,546 69.47%
15.04% 1.22%
Interest paid on deposits and
(13,737) -49.29% (15,005) -50.69% (12,315) -48.38% (8,654) -41.10% (8,016) -41.11%
borrowings 2019 2019
Net Interest Income 5,930 21.28% 8,159 27.56% 7,506 29.49% 5,745 27.28% 5,529 28.36% 16.52% 1.30%
Non-interest Income 8,203 29.43% 6,439 21.75% 5,633 22.13% 6,656 31.61% 5,952 30.53%
2018 2018
Total operating income 14,134 50.71% 14,597 49.31% 13,139 51.62% 12,401 58.90% 11,481 58.89%
Total operating expenses 6,441 23.11% 6,387 21.58% 5,995 23.55% 5,605 26.62% 5,063 25.97%
13.83% 1.15%
Profit before provisions 7,692 27.60% 8,210 27.73% 7,144 28.07% 6,796 32.28% 6,418 32.92% 2017 2017
Provision for loans and off-
1,170 4.20% 1,311 4.43% 2,188 8.59% 2,775 13.18% 2,288 11.73% 11.41% 1.04%
balance sheet exposures
Other provision (169) -0.60% 643 2.17% 370 1.46% (37) -0.17% (269) -1.38% 2016 2016
Total provisions 1,001 3.59% 1,954 6.60% 2,558 10.05% 2,739 13.01% 2,019 10.35% 12.94% 1.33%
Profit before tax for the year 6,691 24.01% 6,256 21.13% 4,586 18.02% 4,057 19.27% 4,400 22.56%
Total provision for taxation 2,588 9.29% 2,248 7.59% 1,505 5.91% 1,652 7.85% 1,743 8.94%
Profit after tax for the year 4,103 14.72% 4,008 13.54% 3,081 12.10% 2,405 11.42% 2,656 13.62%

60 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 61

Total assets Loans and advances Operating income Operating expense

Stakeholders' Information
(BDT in million) (BDT in million) (BDT in million) (BDT in million)

2020 2020 2020 2020

336,936 228,944 14,134 6,441
2019 2019 2019 2019
335,163 232,051 14,597 6,387
2018 2018 2018 2018
282,451 209,306 13,139 5,995
2017 2017 2017 2017
253,068 184,027 12,401 5,605
2016 2016 2016 2016
211,185 152,084 11,481 5,063

Non-performing loan (Amount) (BDT in million) Non-performing loan (%) (Percentage) Profit before provisions (BDT in million) Total provision charged (BDT in million)

2020 2020 2020 2020

6,226 2.72% 7,692 1,001
2019 2019 2019 2019
7,771 3.35% 8,210 1,954
2018 2018 2018 2018
4,926 2.35% 7,144 2,558
2017 2017 2017 2017
4,600 2.50% 6,796 2,739
2016 2016 2016 2016
4,096 2.69% 6,418 2,019

Deposits (BDT in million) Borrowing (BDT in million) Profit before tax (BDT in million) Profit after tax (BDT in million)

2020 2020 2020 2020

242,358 44,286 6,691 4,103
2019 2019 2019 2019
240,164 50,821 6,256 4,008
2018 2018 2018 2018
199,629 46,732 4,586 3,081
2017 2017 2017 2017
167,348 50,998 4,057 2,405
2016 2016 2016 2016
140,284 39,061 4,400 2,656

62 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 63

Stock Performance Market Value Added (MVA) Statement

Stakeholders' Information
DSE CSE Particulars 2020 2019
Total Volume on DSE
Month Face value per share (BDT) 10.00 10.00
Month High Month Low Total Volume (Number) Month High Month Low Total Volume (Number) & CSE
Market value per share (BDT) 36.00 33.20
Jan-20 35.30 30.60 4,657,187 35.00 30.00 29,252 4,686,439
Number of shares outstanding 811,799,547 811,799,547
Feb-20 36.00 30.60 1,423,857 37.70 32.00 22,112 1,445,969 Market capitalization (BDT in million) 29,225 26,952
Mar-20 35.20 28.00 1,265,377 34.00 30.00 16,974 1,282,351 Book value of paid up capital (BDT in million) 8,118 8,118
Apr-20 Market Remained Closed Market value added (BDT in million) 21,107 18,834

May-20 31.10 30.90 24,596 Market Remained Close 24,596

Jun-20

Jul-20
31.50

32.80
30.90

30.90
296,465

1,184,023
31.10

32.00
31.10

31.10
40

4,936
296,505

1,188,959
Credit Rating of EBL
Aug-20 40.30 30.90 5,149,069 39.00 31.10 67,111 5,216,180 Local (CRISL)
Sep-20 39.20 35.70 3,208,740 37.60 35.00 10,837 3,219,577
Date of Rating : June 22, 2020 Valid up to: June 21, 2021
Oct-20 37.00 32.30 1,776,842 37.40 31.50 46,548 1,823,390
Long Term Short Term
Nov-20 37.40 33.20 1,365,301 39.80 34.20 82,201 1,447,502
Surveillance Rating AA+ ST-1
Dec-20 37.00 34.00 2,322,284 36.90 33.20 33,714 2,355,998
Outlook Developing

Price-Volume Movement of EBL

Rationale
VOLUME CLOSE Price
CRISL has reaffirmed the long term rating “AA+” and the short-term rating “ST-1” to EBL. This has been done on the basis of operational
39 2000000 and financial performance along with relevant quantitative and qualitative information of the Bank and other prevailing factors through an
in-depth analysis.
1800000
37 The above rating has been assigned on the basis of its financial performance, asset quality, capital adequacy, liquidity, risk management
1600000 practice, portfolio management, good non-funded business, compliance, governance practice, robustness of IT infrastructure & IT risk
management, HR development practice, good market image, experienced top management and above all EBL’s strategy to address future
35 1400000 contingency. While assigning the rating, CRISL also factored the operational performance and fund management efficiency of the Bank
through its capital market subsidiaries.
1200000
33
Global (Moody’s)
1000000
EBL is the first company in the country rated by Moody’s, a renowned global rating agency, in March 2016. The Bank has been assigned B1
31 rating in December 2020 that reflects the Bank’s track record of relatively good asset quality, its moderate capitalization, robust earnings that
800000
is somewhat constrained by lending interest rate cap; and its modest deposit franchise.
29 600000

400000
27
200000

25 0
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20

64 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 65

Financial Calendar

Stakeholders' Information
Quarterly results Stock details

Particulars Submission Date to BSEC Particulars DSE CSE

Un-audited financial statements for the 1 quarter ended on 31 March 2020
st
14 May 2020 Stock symbol EBL EBL
Un-audited financial statements for the 2 quarter ended on 30 June 2020
nd
29 July 2020 Company code 148 22025
Un-audited financial statements for the 3rd quarter ended on 30 September 2020 19 November 2020 Listing year 1993 2004
Market category A A
Dividend Electronic share Yes Yes
Market Lot (number) 1 1
Face value (taka) 10 10
28th Annual General Meeting Notice date 28 June 2020
Total number of securities 811,799,547 811,799,547
Declared 15% Cash Dividend for the year ended 31 December 2019 Record date 03 June 2020
28th Annual General Meeting Held on 05 August 2020

Disbursement of Cash Dividend Date of disbursement

06 August 2020 & Information sensitive to share price
01 October 2020

Tax on dividend income Particulars Date of disclosure

Corporate disclosure upon approval of annual audited financial statements 2019, recommendation of
05 April 2020
dividend, record date for dividend entitlement of the 28th AGM (05.08.2020) of EBL.
Stock dividend is tax exempted for shareholders. In compliance with Section 54 and Section 56 of Income Tax Ordinance 1984, at the time of
Corporate disclosure of 1st quarter financial information (un-audited) of EBL ended on 31 March 2020. 13 May 2020
paying cash dividend to a shareholder, EBL shall deduct tax on the amount of such dividend, in the following manner:
Corporate disclosure of 2nd quarter financial information (un-audited) of EBL ended on 30 June 2020. 29 July 2020
• If the shareholder is a resident or non-resident Bangladeshi person other than a company, tax at the rate of 10 (ten) percent where the Corporate Disclosure of 3rd quarter financial information (un-audited) of EBL ended on 30 September 2020. 19 November 2020
person receiving such dividend furnishes his twelve-digit E-TIN to EBL or 15 (fifteen) percent where the person receiving such dividend
fails to furnish his twelve-digit E-TIN to EBL.
• If the shareholder is a company (resident/non-resident Bangladeshi), tax at the rate of 20%. Officials at investors’ relation department Accessibility of annual report 2020
• If the shareholder is a non-resident company, fund or trust, tax at the rate of 20%.
• If the shareholder is any other person not being a company, fund or trust (non-resident), tax at the rate of 30%.
Shareholders of EBL may contact/communicate to the Head of Share Annual Report 2020 and other information about EBL is available
Department for Share related issues. The address of the Investors’ on EBL’s website. EBL provides copies of Annual Reports to the
Tax on capital gain Relation Department is as follows: Bangladesh Securities and Exchange Commission, Bangladesh Bank,
Dhaka Stock Exchange Limited and Chittagong Stock Exchange
Md. Joynal Abedin
Limited for their reference.
Share Department
Capital gain arising from transfer or sale of government securities is tax exempted. Capital gain arising from transfer or sale of securities of
Eastern Bank Limited
public limited companies listed with stock exchanges is taxable at the rate of 10%.
Z Tower (6th Floor)
Holding No.04, Road No. 132
Charge of tax on stock dividend Gulshan-1, Dhaka-1212.
Fax: 880-2-9892353
E-mail: joynal.abedin@ebl-bd.com
As per Section 16F of Income Tax Ordinance 1984, if in an income year, the amount of stock dividend declared or distributed exceeds the Telephone: 9892260 (Direct)
amount of cash dividend declared or distributed or without declaration or distribution of any cash dividend by EBL, tax shall be payable at Mobile No. 01814-225335
the rate of 10 (ten) percent on the whole amount of stock dividend declared or distributed in that income year.

Charge of tax on retained earnings & reserves, surplus etc.

As per sec 16G of Income Tax Ordinance 1984, if in an income year, the total amount transferred to retained earnings or any fund, reserve or
surplus, called by whatever name, by EBL exceeds 70 (seventy) percent of the net income after tax, tax shall be payable at the rate of 10 (ten)
percent on the total amount so transferred in that income year.

66 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 67

Glimpses from the 28th AGM
GOVERNAN

Governance Reports
GOVERNANCE
Chairman of EBL Md. Showkat Ali Chowdhury, other Directors of the Board and
Company Secretary of EBL at the 28th AGM held on digital platform due to COVID-19
pandemic
Chairman of EBL Md. Showkat Ali Chowdhury addressing the shareholders through
zoom webinar during the 28th AGM

CE REPORTS
REPORTS
MD & CEO of EBL Ali Reza Iftekhar responding to the queries of shareholders at the A munajat was offered in memory of the deceased Director of EBL, Engr. A.M. Shaukat
28th AGM Ali and other shareholders who passed away in 2020 at the 28th AGM of EBL

Company Secretary of EBL Md. Abdullah Al Mamun giving his welcome speech at A shareholder giving his views on the performance of EBL
the 28th AGM

A shareholder presenting his analysis on the performance of the Bank A shareholder giving a review analysis on overall performance of the Bank

68 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 69

Directors’ Responsibility Statement reviewed on an ongoing basis and any revision to these are • The pattern of shareholdings: Please see Corporate

Governance Reports
recognized in the period in which the estimate is revised and Governance Report and note 14.1 of the Notes to the Financial
in any future period affected. Statements 2020.
Among other oversight responsibilities, Board of Directors (BoD) in the “Stakeholders’ Information” section will provide detailed • Following International Accounting Standards (IAS)/
• Brief resume of the directors and nature of their expertise
has to ensure that the Financial Statements of the Bank and information to support this. International Financial Reporting Standards (IFRS), as
in specific functional areas: Brief profile of directors and
its subsidiaries are prepared in accordance with applicable applicable in Bangladesh, in preparation of financial statements
• Basis for related party transactions and a statement of their representation in other companies have been presented
International Financial Reporting Standards (including and any departure there from has been adequately disclosed:
all related party transactions: The basis for related party in ‘Profile of Board of Directors’ section of this report and
International Accounting Standards), relevant provisions of the Details description including disclosure of departures has been
transactions has been stated in the “Corporate Governance
Companies Act 1994, Bank Company Act 1991, rules and regulations presented in Note 2.1 to the Financial Statements 2020. Annexure C of the Financial Statements 2020.
Report” and a statement of related party transactions has been
of Bangladesh Bank and Bangladesh Securities and Exchange
presented in the Annexure C1 of the Financial Statements 2020. • The system of internal control is sound in design and has • Management’s discussion and analysis signed by CEO/
Commission (BSEC), listing rules of relevant stock exchanges and
been effectively implemented and monitored: A brief MD: Please see ‘Managing Director & CEO’s Review’ and
other applicable laws, rules and regulations. • Utilization of proceeds from public issues, rights issues
description in this regard has been presented in the ‘Internal
and/or through any other instruments: Since taking over ‘Management Discussion and Analysis’ section of this annual
In compliance with section 184 of Companies Act 1994, the Annual control system’ paragraph under Directors’ Report 2020.
the businesses, assets, liabilities and losses of erstwhile report.
Report which is presented in the Annual General Meeting (AGM) Bank of Credit & Commerce International (Overseas) Limited, • Protection of interest of minority shareholders and effective
has a separate section as ‘Directors’ Report 2020’ that contains, EBL did not raise any capital through public issues except means of redress: The Bank is operated in accordance • Certification by the CEO and CFO: The certification of MD &
among others, a review of the following issues: a Right Issue in 2009. However, the Bank raised BDT 2,500 with the Articles of Association and all applicable laws and CEO and CFO has been presented at the beginning of Financial
million and BDT 5,000 million through issuance of 7-year non- regulations of the land to ensure the greater interest of all the Reports section of this annual report.
• State of the Bank’s affairs: A review of financial performance
convertible subordinated bonds in 2015 and 2019 respectively. shareholders of the Bank. The Bank is committed to sound
and position has been presented in the Directors’ Report 2020 • Certificate on compliance of corporate governance code: The
The proceeds were utilized to generate liquidity and provide governance practices based on integrity, openness, fairness,
and Management Discussion and Analysis (MD&A) section certificate issued by K.M. HASAN & CO., Chartered Accountants,
additional cushion in light of Capital to Risk Weighted Assets professionalism and accountability in building confidence
with relevant analytics.
Ratio of the Bank. among stakeholders. However, any complaint, received at AGM has been presented at the end of Corporate Governance Report.
• Any recommended reserve in the balance sheet: As the or throughout the year, from any shareholders, is resolved
• Deterioration of financial results after the company goes for To adhere to good corporate governance practices, the Bank has
‘Statutory Reserve’ has already equated with paid up capital lawfully in time.
IPO, RPO, Rights Offer, Direct Listing, etc.: Refer to the earlier been complying with the corporate governance code issued by
of the Bank, no amount was required to transfer to ‘Statutory
paragraph, the Bank issued Right Share in 2009 but after that • Significant doubts upon the Bank’s ability to continue as a
Reserve’ as per Section 24 of Bank Company Act 1991. BSEC (Notification No. BSEC/CMRRCD/2006-158/207/Admin/80
financial results of the Bank did not deteriorate. going concern: Nothing as yet.
dated 03 June 2018). EBL’s compliance status to the said prescribed
• Recommended dividend: The Board has recommended 17.5%
• Explanation of variances between quarterly and annual • Explanations to significant deviations from the last year’s practices is presented in Corporate Governance Report.
cash dividend and 17.5% stock dividend for the completed
financial performance: No major variances have been operating results: Significant deviations of operating results
year 2020.
occurred between quarterly and annual performance. in 2020 have been adequately discussed in the Directors’ The Directors, to the best of their knowledge and information,
• Any event after balance sheet date which may affect Report 2020 and MD&A section. hereby confirm that the Annual Report 2020 together with the
• Remuneration to directors including independent directors:
company’s financial condition: None. Directors’ Report and the Financial Statements have been prepared
Remuneration provided to directors has been presented in the • Summarization of last five year’s key operating and financial
Corporate Governance Report and Note 32 and Note 33 to the data: Please see ‘Five-Year Progression of EBL’ in the section in compliance with applicable governing acts, rules, regulations,
• Any change in Bank’s activities, subsidiaries’ activities etc.:
No major change in strategy and actions in the Bank and Financial Statements. of Stakeholders’ Information. guidelines and laws of various regulatory bodies including
Subsidiaries experienced in 2020. Bangladesh Bank and BSEC.
• The financial statements prepared by the management • Declaration of dividend or not: Declared 17.5% cash dividend
In compliance with BSEC Corporate Governance Code dated 03 present fairly its state of affairs, the result of its operations, and 17.5% stock dividend for the year 2020.
On behalf of the Board of Directors
June 2018 the Directors of the Bank hereby highlights following cash flows and changes in equity: The financial statements
• Declaration of bonus share or stock dividend as interim
issues, among others, in their report as prescribed: prepared by the management as at and for the year ended 31
dividend: No bonus share or stock dividend was declared as
December 2020 present fairly, in all material respects, its state
• Industry outlook and possible future developments in the interim dividend in 2020.
of affairs, the results of its operations, cash flows and changes
industry: A brief review in this regard has been presented in in equity. The external auditors i.e. A. Qasem & Co., Chartered • No. of Board meetings and directors’ attendance in 2020:
the Directors’ Report 2020. Accountants also provided their opinion on the same by Please see ‘Board meeting and attendance’ section under Md. Showkat Ali Chowdhury

• Segment-wise or product-wise performance: Business-wise issuing an unqualified audit report. Corporate Governance Report. Chairman of the Board of Directors
performance has been presented in the MD&A section. • Maintenance of proper books of account: Proper books of
account as required by law have been kept by EBL. The external
• Risks and concerns: A detailed discussion regarding risks
auditors i.e. A. Qasem & Co., Chartered Accountants also
and management of the same has been presented in “Risk
provided their opinion on the same in point (IV) of “Report on
Management” section of this Report.
other legal and regulatory requirements” of their audit report.
• Discussion on operating performance: A brief description has
• Consistent application of appropriate accounting policies
been presented in “Financial Performance Highlights of EBL”
and estimates in preparation of financial statements:
part of the Directors’ Report 2020.
Appropriate accounting policies have been consistently
• Discussion on continuity of any extra-ordinary gain or applied in preparation of the financial statements of the Bank
loss: In last five years, EBL has not experienced any extra- and the accounting estimates are based on reasonable and
ordinary gain or loss. EBL’s Five Year Progression presented prudent judgment. Estimates and underlying assumptions are

70 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 71

Report of the Audit Committee Financial reporting Compliance with existing laws and regulations

Governance Reports
• Review, before submission to the Board for approval, periodic Review whether the laws and regulations framed by the regulatory
Audit Committee of the Board financial statements to determine whether they are complete and authorities (Central Bank, Securities Regulators and other bodies)
consistent with applicable accounting and reporting standards and internal circular/instructions/policy/regulations approved by
The Audit Committee (AC) was formed as a subcommittee of the Board of Directors to protect the interest of stakeholders. The AC undertakes set by respective governing bodies and regulatory authorities. the Board and management have been duly complied with.
to engage in systematic and continuous review, monitoring and assessment of organizational performance against evolving regulatory
• Consult with management and external/statutory auditors
requirements. Its roles and responsibilities were defined in line with the Corporate Governance Circulars of Bangladesh Bank (BB) and the Miscellaneous
to review annual financial statements or any other ad-hoc
Notifications of Bangladesh Securities and Exchange Commission (BSEC). Main objectives of AC are:
financial reports before their finalization. • The AC submits a ‘Compliance Report’ on quarterly rest to
• To assist the Board in fulfilling its oversight responsibilities including implementation of the objectives, strategies and overall business
the Board mentioning any errors and irregularities, fraud and
plans set by the Board. Internal audit forgery and other anomalies pointed by Internal and External
• To review the financial reporting process and the system and effectiveness of internal control process. Auditor and Inspection Team from Bangladesh Bank.
• Monitor/evaluate whether internal audit functions are truly
• To assess effectiveness of overall processes and procedures in line with relevant laws and regulations and own code of business independent.
• The AC submits an evaluation report relating to internal and
conduct and to check compliance status of inspection report of Bangladesh Bank.
• Review the activities, structure and style of conduct of internal external auditor of the Bank to the Board.
Composition and qualifications audit functions to ensure that no unjustified restrictions or
• This Committee supervises other assignments delegated by
limitations are imposed.
the Board and evaluate its own performance regularly.
SL Status with Status with the Educational Meeting
Name Remarks • Review and assess the annual internal audit plan.
No. the Bank Committee Qualification Attendance
Meetings of the Audit Committee
Independent Master of Science in Joined Audit Committee on
1. Ashiq Imran Member 2/2 • Review the efficiency and effectiveness of internal audit
Director Architecture 20 October 2020 Bangladesh Bank suggested banks to hold at least 4 meetings in a
function.
year. The Audit Committee of EBL held 8 (Eight) meetings in 2020
2. Mufakkharul Islam Khasru Director Member MBA (IBA) 7/8 -
• Review and ensure that appropriate recommendations made and had detailed discussions and review sessions with the Head
3. Gazi Md. Shakhawat Hossain Director Member M.com (Accounting) 8/8 -
by internal auditors to remove irregularities, if any, are duly of Audit, Head of Internal Control & Compliance, External Auditors
acted upon by concerned personnel in running the affairs of regarding their findings and remedial suggestions on various
Expired Director and Directors resigned from office: the Bank. issues that need improvement. The AC instructed management
to follow those remedial suggestions and monitored accordingly.
1. A.M. Shaukat Ali Director Member B. Sc (Engg.), Civil 5/5 Expired on 30 July 2020 External audit Meeting dates are as follows:
2. Meah Mohammed Abdur Rahim Independent Ex-Chairman Resigned from the office of
Bachelor of Commerce/ • Make recommendations to the Board, to be put to shareholders for SL
Director Director on 20 October 2020 Meetings Date of Meeting
A.I.C.S, B.Sc. in 6/6 approval in the AGM, in relation to appointment, re-appointment No.
Economics & Finance. and removal of the Bank’s external auditors. The Committee
shall oversee the selection process of new auditors and shall 01 121 Audit Committee Meeting 27 January 2020
Independent Resigned from the office of investigate any issue that might have led auditors to resign. 02 122 Audit Committee Meeting 26 February 2020
3. Ormaan Rafay Nizam Member Commerce Graduate 6/6
Director Director on 20 October 2020
• Oversee the relationship with the external auditors including: 03 123 Audit Committee Meeting 05 April 2020
04 124 Audit Committee Meeting 13 May 2020
N.B: Dr. Toufic Ahmad Choudhury was appointed as Independent Director by the Board of Directors on 09 November 2020 subject to approval of Bangladesh Bank and Shareholders  Approval of their remuneration i.e. fees for audit or non-
in the next Annual General Meeting (AGM).
audit services. 05 125 Audit Committee Meeting 29 July 2020

The Company Secretary acts as the Secretary of the Audit Committee of the Board. 06 126 Audit Committee Meeting 26 August 2020
 Assessing annually their independence and objectivity
taking into account relevant professional and regulatory 07 127 Audit Committee Meeting 19 November 2020
Roles and responsibilities of Audit Committee • Review whether the arrangements made by management requirements. 08 128 Audit Committee Meeting 28 December 2020
for developing and maintaining a suitable Management
The roles and responsibilities of Audit Committee have been Information System (MIS) are adequate.  Satisfying itself that there are no relationships (such as Major areas dealt with by Audit Committee in 2020
defined in line with the relevant provisions of Corporate family, employment, investment, financial or business)
Governance Guidelines/Notification issued by BB and BSEC, two • Monitor whether suitable suggestions made by internal and between the auditor and the Bank (other than in the • Reviewed annual financial statements of the Bank for the year
external auditors to improve internal control practices have ordinary course of business). 31 December 2019 as certified by the External Auditors before
paramount regulators for the Bank, and other best practices
been duly implemented by the management. submission to the Board for consideration.
of governance. Some important roles and responsibilities are • Meet regularly with the external auditor, including once at the
highlighted below: • Review the existing risk management policy and procedures planning stage before the audit and once after the audit at the • Reviewed un-audited quarterly (Q1, Q2 and Q3) financial
to improve health and efficiency of loan portfolio. reporting stage. The Committee shall meet the external auditor statements of the Bank for the year 2020 before submission to
Internal control at least once in a year, without management being present, to the Board for consideration.
• Review the corrective measures taken by the management discuss their remit and any issues arising from the audit.
• Evaluate whether management is adhering to appropriate as regard to the reports relating to fraud-forgery, deficiency • Reviewed Management Report on the Bank for the year
risk management, compliance and governance practices in internal control or other similar issues detected by internal • Review the findings and recommendations made by the ended 31 December 2019 submitted by the External Auditors,
and have clear understanding of their respective roles and and external auditors and inspectors from the regulators and external auditors for removal of irregularities, if any, detected A. Qasem & Co., Chartered Accountants and its subsequent
responsibilities. inform the Board on a regular basis. are duly acted upon by the management. compliance thereof.

72 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 73

• Reviewed and approved the ‘Annual Audit Plan 2021’ and • Reviewed the report to the Shareholders of EBL on compliance
Report of the Risk Management Committee (RMC)

Governance Reports
‘Risk Based Audit Plan 2021’ and ‘Audit Plan of Subsidiary of the corporate governance code as submitted by corporate
Companies’ of EBL. governance auditor for the year ended 31 December 2019.
of the Board
• Reviewed the compliance status of EBL for the half year ended • Reviewed the directives under BRPD Circular Letter 56/2020
31 December 2019 as per DOS Circular Letter No. 10 dated 9 related to apportionment of interest income and loan loss
In compliance with BRPD Circular No. 11 dated 27 October 2013, the Board of Directors (BoD) formed the Risk Management Committee (RMC)
May 2017. provisioning of ‘special general provision - COVID -19’ against
of the Board on 07 November 2013 which was last reconstituted in Board Meeting held on 09 November 2020. The objective of the committee
the loan portfolio which was granted payment deferral under
• Reviewed the compliance status of core risks of EBL and is to ensure risk governance; overseeing, directing and setting policies and reducing probable risks arising during implementation of
the guidelines of BRPD circular 17/2020.
related risk level of branches, departments and subsidiaries of policies, procedures and strategies.
EBL. • Reviewed the Annual Health Report of EBL for the year 2019.
Composition and qualifications
• Reviewed the overdue status of all loans of current and ex- • Reviewed overall effectiveness of control system of EBL.
employees of the Bank. All members of RMC are Non-Executive Directors. The qualification of members, their status in RMC and attendance in the meetings are
The Minutes of the Audit Committee meetings containing various noted below:
• Reviewed the Inspection Report (Surprise) on EBL Branches
suggestions and recommendations to the management are duly
issued by Bangladesh Bank and subsequent compliance by Status with the Status with the Educational Meeting
placed to the Board for ratification on regular basis. SL No. Name Remarks
management thereof. Bank Committee Qualification Attendance
• Reviewed the appointment of external auditors and corporate 1 Mir Nasir Hossain Director Chairman M.Com (Accounting) 5/5 -
governance auditors for the year 2020. On behalf of the Audit Committee,
Joined RMC on
• Reviewed the revised audit plan submitted by Internal Audit 2 Mufakkharul Islam Khasru Director Member MBA (IBA) 1/2
05 August 2020
Department of EBL.
3 Gazi Md. Shakhawat Hossain Director Member M.Com (Accounting) 5/5 -
• Reviewed the prevention of Trade Based Money Laundering (TBML)
Policy, Asset Liability Management Policy, Foreign Exchange Risk Ashiq Imran Master of Science in Joined RMC on
4 Zara Namreen Director Member 1/1
Management Policy and Interest Rate Policy of EBL. Independent Director Business Finance 09 November 2020

Director retired from RMC and resigned from office:

Served the committee

1 Anis Ahmed Director Ex-Chairman B.Sc. (Finance), MBA 3/3
till 05 August 2020
Bachelor of Commerce Resigned from office
Independent
2 Meah Mohammed Abdur Rahim Member / A.I.C.S, B.Sc. in 3/4 of the Director on 20
Director
Economics & Finance October 2020

N.B: Dr. Toufic Ahmad Choudhury was appointed as Independent Director by the Board of Director on 09 November 2020 subject to approval of Bangladesh Bank and Shareholders
in the next Annual General Meeting (AGM).

The Company Secretary acts as the Secretary of RMC of the Board of Directors.

Roles and Responsibilities of RMC

The roles and responsibilities of RMC have been framed in line with • RMC has to review the risk management policy and guidelines
the provisions of BRPD Circular No. 11 dated 27 October 2013 and of the Bank at least once a year, make necessary modifications
other best practices. Some important roles and responsibilities are as per requirement and submit the same to the Board of
highlighted below: Directors for consideration. Besides, the committee reviews
the loan portfolio and takes necessary initiatives to modify the
• It is the responsibility of RMC to identify and assess risks and same as per requirement.
guide management to formulate strategies for minimizing/
controlling risks. The committee (RMC) reviews the risk • The committee monitors implementation status of risk
management policy and modifies the same as required from management policy of the Bank and examines whether
time to time. remedial measures have been taken to minimize credit risk,
market risk and operational risk.
• In order to mitigate risks, RMC ensures that a suitable risk
governance structure is in place. Separate management • The committee reviews various decisions and recommendations
committees have been formed and monitored by RMC to made by different risk committees of management for onward
ensure compliance with risk management guidelines related submission to Board of Directors.
to credit risk, operational risks, foreign exchange risk, internal
control and compliance risk, money laundering risk and • The committee complies with different directives/guidelines
information and communication technology risk. as issued by Regulators from time to time.

74 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 75

Meetings of the RMC • Reviewed Comprehensive Risk Management Ratings of EBL for
Report of the Asset-Liability Committee

Governance Reports
December 2019 and upon review endorsed the management
Bangladesh Bank advised RMC to hold at least 4 meetings in a year. strategies to mitigate the identified risks as highlighted in that
In line with the same, RMC held 5 (Five) meetings during 2020 and rating report. Banks must have Asset-liability Committee (ALCO) comprising of designated senior officials of the Bank to make important decisions
had detailed discussions and review sessions with the management regarding issues related to asset-liability management. The committee, typically known as ALCO, should meet at least once in every month to
• Reviewed risk performance against approved Risk Matrix (Key
regarding their findings, observations and recommendations on analyze, review and formulate strategy to manage the balance sheet. Details of composition of ALCO are stated in the section of ‘Management
Risk Indicators) for the year ending December 2019, half year
various issues of interest and concern. Meeting dates were as Committees’.
ending June 2020 and month ending position from January to
follows:
November 2020.
ALM (Asset-liability management) desk
• Reviewed the reports on Risk Management Policies of EBL and
SL Meetings Date of Meeting effectiveness of risk management functions in the Bank for ALM desk prepares the ALCO pack, ALCO meeting minutes, and circulate the approved minutes. Moreover, monitoring developments of local
the year 2019. and international market and updating ALCO about the changes in the market are responsibilities of ALM desk.
01. RMC Meeting 01 26 February 2020 • Reviewed and endorsed Bank’s risk appetite/internal limits for
Meetings of the ALCO
2020 on major risk areas to place towards Board of Directors
02. RMC Meeting 02 01 June 2020
for approval. ALCO meeting, generally, takes place in every month but if required, ALCO chairman may call unscheduled emergency meetings. ALCO’s
03. RMC Meeting 03 20 July 2020 • Reviewed and approved Bank’s Risk Matrix for the year 2020 responsibility is defined in the ALM policy of the Bank.
and 2021 with appropriate Management Action Triggers
04. RMC Meeting 04 24 September 2020 Roles and responsibilities of ALCO
(MAT).
05. RMC Meeting 05 21 December 2020 • Reviewed liquidity positions and provided strategic directions
Major areas Roles and responsibilities
on booking of low cost deposits with efficient liquidity
Major areas focused by RMC in 2020 management to maximize profitability amid pandemic. ALCO management & • Holding a formal meeting (usually once in a month). Informal meetings are held on requirement basis.
reporting • Monitoring and discussing the status and results of decisions taken in the previous ALCO.
• Reviewed report on customers of EBL having backward or
Major issues and areas of interest dealt with by RMC during 2020 • Reviewing the interest rate risk and liquidity risk status of the Bank and focusing on action plan to
forward linkage/dependency on China to assess impact on
are noted below: achieve goals.
the Bank due to spread of Novel Coronavirus. Upon review
RMC advised mitigation strategies to overcome this fall back • Assessing liquidity gap and interest-rate risk.
• RMC highly focused on collection and recovery from delinquent
assets and reviewed implementation status of the strategies situation. • Confirmation of last ALCO Minutes.
adopted in meetings. Throughout the year RMC regularly • Reviewed EBL’s credit portfolio in spinning sector; with a • Reporting ALCO minutes to the Board along with market commentary and latest ALM indicators.
monitored position of classified, special mention, written- focus on factories having or not having captive consumption. Balance sheet planning • Setting up annual plan and reviewing it on quarterly basis.
off and compromised settlement accounts, recovery status RMC also reviewed EBL’s credit portfolio on Microfinance
therefrom and progress in the law suits. The highest amount • Decision making on choosing ideal yield curve for fund transfer pricing.
Institutions (MFI) and NGOs and provided strategic directions
of recovery so far from written off portfolio in a single year for those sectors. • Discussing innovative ideas to boost growth at minimum risk per unit of return.
reflects on the effectiveness of this drive. • Reviewing the decisions taken by investment committee and actions of money market, fixed income
• Reviewed credit/risk evaluation process of Retail loans with
trading desk to capture the short term trading and interest rate arbitrage opportunities.
• Reviewed Top 50 credit exposure (Group) of EBL and advised a focus on credit scoring criteria i.e. profession, income
management to closely monitor the account performance and level, whether EBL’s payroll client or not etc. and evaluation Core asset-liability • Reviewing limits on structural gap in LCY & FCY on annual basis and ensuring compliance with the
to pay special attention to the vulnerable accounts. process of commercial segments which includes involvement management limits on monthly basis.
• Reviewed concerning accounts; which may have been of different teams from credit initiation to post disbursement • Developing parameters for the pricing and maturity distribution of deposits, loans and investments.
classified if payment deferral option/classification pause was follow-up, periodical review, early alert mechanism etc. and • Net interest margin on current balance sheet and forecasted balance sheet.
not allowed by Bangladesh Bank during this pandemic. Also provided strategic directions.
• Interest income projections.
advised to increase monitoring and supervision for timely • Reviewed retail loans to jobholders where there is potential • Interest rate sensitivity analysis.
collection of scheduled EMIs to prevent forward flow. risk of classification due to job cut or salary reduction
• Concentration of different asset classes based on liquidity concern in the balance sheet.
• Reviewed monthly Risk Management Reports, half yearly under pandemic situation and advised reassessment before
disbursement for the approvals given before March 2020. Liquidity risk management Liquidity management strategy
Comprehensive Risk Management Reports (CRMR) and
recommendations of ERMC (Executive Risk Management • Reviewed and approved revised Value at Risk (VaR) policy of • Setting up limits that guide liquidity management of the Banks and ensuring compliance on regular basis.
Committee) made during December 2019 to November 2020 the Bank. • Dependency on volatile liability and ensuring funding diversification.
and with certain directions endorsed the same for onward • Managing lending of funds.
The Minutes of RMC Meetings containing various suggestions and
submission to Bangladesh Bank (BB). Liquidity management under stress situation
recommendations to the management were placed to the Board of
• Reviewed Stress Test Reports from quarter ending December Directors subsequently for ratification. • Complying predesigned contingency funding plan.
2019 to quarter ending September 2020 and endorsed the • Review contingency funding plan on regular interval.
same for onward submission to BB. On behalf of RMC,
• Monitoring liquidity ratios and their skewedness towards contingency situation described in the
• Reviewed ICAAP (Internal Capital Adequacy Assessment contingency funding plan.
Process) and SRP (Supervisory Review Process) return of
EBL for the year 2019 and submitted to Board of Directors for Mir Nasir Hossain
consideration. Chairman of the Risk Management Committee (RMC)

76 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 77

 Report of the Executive Risk Management Committee

Governance Reports
Major areas Roles and responsibilities
Interest rate risk • Setting interest rate forecast on annual basis and reviewing it at least on quarterly basis. However, in
management dynamic or abnormal market condition, ALCO should review interest rate forecast on monthly basis. Eastern Bank Ltd. formed an Executive Risk Management 5. The Committee ensures submission of Risk Appetites to
• Monitoring compliance with interest rate risk limits. Committee (ERMC) comprising of senior officials of the Bank to Department of Off-site Supervision of Bangladesh Bank by end
supervise proper and timely identification, measurement and of February of every year and supervises whether the Bank’s
• Devising strategy to hedge interest rate risk and continue growth unless it falls beyond the risk appetite
mitigation of risks exposed by the Bank in a comprehensive manner risk exposures stays within acceptable level.
or regulatory framework.
and recommend necessary mechanism for proper application and
Fund transfer pricing • Formulating transfer pricing system and policy. 6. RMD presents to the Committee Stress test results along with
practice of sound risk management. ERMC meets once a month to
Comprehensive Risk Management Report (CRMR) to appraise
• Fixing the yield curve. analyze, review and formulate strategy to manage the risks across
and measure the shock resilience capacity of the Bank.
• Measuring customer wise and business segment wise profitability. the Bank.
7. The Committee oversees the timely submission of Stress test
Composition of the Committee results, CRMR and meeting minutes of ERMC to Bangladesh
Major areas focused by ALCO in 2020 Bank within the stipulated timeframe as prescribed by
The committee is functioning under the leadership of Chief Risk
• Investment in High Quality Liquid Asset (HQLA) Bangladesh Bank.
Officer (CRO). Head of Risk Management Division (RMD) acts as
• Investment in other banks Tier-II subordinate bond the Member Secretary of the committee. Other members of this 8. ERMC devises mechanism to entrust any individual/
• Balance sheet management committee are: Head of Corporate Banking, Head of ICC & CAMLCO, department to raise any material risk issues to ERMC through
Head of CRM, Head of Treasury, Chief Technology Officer, Head of Head of RMD. In this regard, periodic self-declaration from
• Taking advantage from money market Liquidity
Operations, Chief Financial Officer, Head of Retail & SME Banking, divisional heads is an option. Head of RMD is to assess the
• Prudently managing bank’s deposit rate Head of Credit Administration, Head of Special Asset Management extent of risk of those issues, investigate further (if required)
and Head of Human Resources. Details of composition of ERMC are on those and place the issue as agenda to ERMC.
stated in the section of ‘Management Committees’.
On behalf of the Asset-Liability Committee
Major areas focused by ERMC in 2020
Meetings of ERMC
• Supervised implementation of newly introduced OBO Guideline
ERMC meeting, takes place in every month but if required, of Bangladesh Bank.
chairman may call unscheduled emergency meetings. In absence
Ali Reza Iftekhar of Chairman; Head of ICC & CAMLCO presides the meeting. ERMC’s • Reviewed policies and endorsed for submission to the Audit
Managing Director & CEO responsibility is defined in its Terms of Reference approved by Committee/RMC of the Board.
Chairman of the Asset-Liability Committee Risk Management Committee (RMC) of the Board. Presence of
• Reviewed all risk related reports throughout the year and
at least two-third members in the meeting is necessary to fulfill
adopted suitable mitigating measures.
the quorum. If any member remains out of office for any pre-set
obligations, medical grounds, on leave etc., the member nominates • Analyzed impact of interest rate capping on the bank and
an alternate member as representative. Absence of any member suggested probable way forward to ALCO.
consecutively for the second time or without prior consent from the
Chair of ERMC is notified to MD & CEO. • Analyzed impact of payment pause and freezing of
classification status on Bank’s profitability.
Roles and responsibilities of the Committee
• Kept an eye on the mitigation measures taken by the Bank to
1. The Committee reports high-risk issues directly to RMC of the shield from Beagleboyz malware attack.
Board, and provides a copy to MD & CEO for acknowledgement.
• Overseeing the progress of utilizing stimulus package fund
2. The Committee submits risk reports on monthly basis to MD formed by Bangladesh Government for COVID affected
& CEO. However, any exceptional situation is immediately businesses.
reported to MD & CEO after detection of such events.
On behalf of the Executive Risk Management Committee
3. ERMC picks key risk issues from meetings and escalates those
to MANCOM for necessary resolutions if not resolved in ERMC.

4. ERMC takes resolution on the risk issues as discussed in

the meeting with specific deadline for execution. Failure to Mahmoodun Nabi Chowdhury
meet the deadline also escalated to MD & CEO for appropriate Deputy Managing Director & CRO
direction. Chairman of the ERMC

78 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 79

Dividend Distribution Policy of EBL

Governance Reports
The Dividend Distribution Policy of EBL prescribes a set of In case of declaration of stock dividend for the year, the Bank shall • EBL shall maintain detailed information of unpaid or • Any corporate benefit in terms of shares accrued on such
principles/guidelines in relation to declaration and payment of explain the reason for declaring stock dividend and utilization of unclaimed cash dividend and rationale thereof, as per BO undistributed or unclaimed stock dividend or bonus shares
dividend and matters incidental thereto or connected therewith. such retained amount as capital (stock dividend) shall be disclosed account (number-wise or name-wise or folio number-wise) shall be credited to the Suspense BO Account.
The said policy is formulated for ensuring proper distribution of in the annual report. of the shareholders, and shall also disclose the summary of
declared dividend (final/interim) to the shareholders of the Bank. aforesaid information in the annual report and shall also report • EBL shall, upon receiving application from the allottee and
Entitlement to dividend in the statements of financial position (Quarterly/annually) as after proper verification of identity and his entitlement, credit
The Audit Committee (AC) of the Board reviewed the policy in its
130 Meeting dated 14 March 2021 which was finally approved by a separate line item ‘Unclaimed Dividend Account’. EBL shall the bonus shares lying with the Suspense BO Account to the
The Shareholders whose names would appear in the Register of
the Board of Directors in its 686 Meeting held on 24 March 2021. publish the year-wise summary of its unpaid or unclaimed BO account of the allottee, or issue bonus shares to the allottee,
Members of the Bank and/or in the Depository on the ‘Record Date’
cash dividend in the website. as applicable, within 15 (fifteen) days of receiving application
would be entitled to receive the interim dividend of the Bank.
Major highlights of the Dividend Distribution Policy are as follows: with an intimation to the Bangladesh Securities and Exchange
Stock dividend
The Shareholders whose names would appear in the Register of Commission (BSEC) and Dhaka Stock Exchange Limited (DSE)
Procedure for payment of dividends
Members of the Bank and/or in the Depository on the ‘Record Date’ EBL shall credit stock dividend directly to the BO account or issue the and Chittagong Stock Exchange Limited (CSE).
Dividend would be recommended by the Board of Directors based would be eligible to join the AGM and entitled to receive the annual/ bonus share certificate of the entitled shareholders, as applicable,
final dividend of the Bank. • Any voting rights on such undistributed or unclaimed stock
on the Audited Financial Statements of the Bank. All requisite within 30 (thirty) days of declaration or approval or record date, as
dividend or bonus shares shall remain suspended till the
approvals and clearances, where necessary shall be obtained the case may be, subject to clearance of the exchange(s) and the
Payment of dividend rightful ownership claim of the shareholders is established.
before the declaration of dividend. Dividend shall be approved by Central Depository Bangladesh Limited (CDBL). EBL shall follow
the Shareholders at an Annual General Meeting (AGM) on the basis EBL shall pay off the interim dividend to the entitled shareholders, the provisions of cÖweavb 46 of the wWcwRUwi (e¨envwiK) cÖweavbgvjv, 2003 for
Payment of unclaimed or unpaid cash dividend and stock dividend
of recommendation of the Board of Directors but no dividend shall within 30 (thirty) days of record date. EBL shall pay off the final issuance of bonus shares.
exceed the amount recommended by the Directors. dividend to the entitled shareholders, within 30 (thirty) days from EBL shall not forfeit any unclaimed cash dividend or stock dividend
EBL shall maintain a Suspense BO Account for undistributed or
the date of approval by shareholders in AGM. till the claim becomes barred by the law of land in force. EBL shall
unclaimed stock dividend or bonus shares and shall also follow the
No dividend shall be paid other than out of profits of the year or follow the rules & regulations of the regulators issued from time to
Cash dividend under mentioned procedures for ensuring the rightful ownership:
any other undistributed profits of the Bank. No dividend shall time regarding payment of unclaimed or unpaid cash dividend and
be declared out of the capital reserve account or the revaluation • EBL shall send at least 3 (three) reminders to the entitled stock dividend to the entitled shareholders.
Cash dividend shall be distributed in the following manner and
reserve account or any unrealized gain or out of profit earned prior shareholders.
procedures:
to the incorporation of the company, if any, or through reducing Submission of dividend distribution compliance report
paid-up capital or through doing anything so that the post-dividend • Within 10 (ten) days of declaration of cash dividend by the • The Suspense BO Account shall be held under Block Module
retained earnings become negative or a debit balance. and such undistributed or unclaimed stock dividend or bonus EBL shall submit a dividend distribution compliance report to
Board of Directors, an amount equivalent to the declared cash
shares shall not be transferred in any manner except for the BSEC, DSE & CSE in a specified format issued by the regulator(s)
dividend payable for the concerned year shall be kept in a
Interim dividend purpose of allotting the bonus shares as and when the allottee within stipulated time of completion of dividend distribution to the
separate bank account of EBL.
approaches to the issuer. entitled shareholders.
The Board of Directors of the Bank shall take decisions with
• EBL shall pay off cash dividend directly to the bank account
regard to recommending interim dividend for the shareholders of the entitled shareholders as available in the BO account
on the basis of audited financial statements and declaring the maintained with the depository participant (DP), or the bank
shareholders who shall be entitled to such dividend. No stock or account as provided by the shareholders in paper form, through
bonus entitlement shall be declared as interim dividend. Bangladesh Electronic Funds Transfer Network (BEFTN).

The Board of Directors may from time to time pay to the • EBL may pay off such cash dividend through bank transfer
shareholders such interim dividend as appears to the Board of or any electronic payment system as recognized by the
Directors to be justified by the profits of the Bank. The decision Bangladesh Bank, if not possible to pay off through BEFTN.
about recommending interim dividend and entitlement for such
dividend cannot be changed. • Upon receiving the claim on cash dividend from a stock broker
or a merchant banker or a portfolio manager for the margin
Final dividend client or customer who has debit balance or margin loan, or as
per intention of the client of stock broker or merchant banker
The Board of Directors of the Bank shall recommend final dividend or portfolio manager, EBL shall pay off such cash dividend to
for the shareholders on the basis of annual audited financial the Consolidated Customers’ Bank Account (CCBA) of the stock
statements and declare the shareholders who shall be entitled to broker or to the separate bank account of the merchant banker
such dividend. or portfolio manager through BEFTN.

The decision about recommending or not recommending final • In case of non-availability of bank account information or if
dividend and entitlement for such dividend, if recommended, shall not possible to distribute cash dividend through BEFTN or
be taken after considering the interim dividend already distributed electronic payment system, EBL shall issue cash dividend
and cannot be changed prior to holding of the AGM. warrant and shall send it by post to the shareholders.

80 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 81

Corporate Governance Report The corporate governance philosophy of the Bank is based on the Retirement and election of Directors

Governance Reports
following principles:
According to Clauses 105 & 106 of the Articles of Association of EBL,
• Creating value for all stakeholders without compromising following Directors retired and being eligible were re-elected in the
Corporate governance Governance structure of the Bank ethical principles. 28th Annual General Meeting (AGM) held on 5 August 2020.
Good governance is a key to proper functioning and sustainable Board of Directors occupies the center stage of overall governance • Ensuring fairness and equitable treatment of all stakeholders,
including employees and shareholders. SL. Mode of
operations of the banking sector as well as overall economy of practice of EBL and is responsible for establishing an appropriate Name of Director
No. change
a country. Banks play an important role in the economy by governance structure for the Bank while the shareholders’ role is to • Compliance with all applicable laws, rules and regulations, not
intermediating funds from savers and depositors to activities appoint the suitable directors and the auditors. only in letter but also in their spirit.
Md. Showkat Ali Chowdhury
that help drive economic growth. Banks’ safety and soundness, • Ensuring transparency and accountability, and maintaining a high 1. Re-elected
The Board of Directors plays a pivotal role in shaping governance (Representing Namreen Enterprise Ltd.)
are crucial to financial stability, and the way they conduct structure and practices through their choice of strategy and degree of disclosure levels with the motto ‘when in doubt, disclose’.
their businesses, therefore, is of paramount importance. Good leadership to drive the Bank to growth path. Design and • Embracing a trusteeship model in which management is the Mir Nasir Hossain
2. Re-elected
governance ensures sustainable growth by way of maintaining implementation of governance mechanism including selection and trustee of the shareholders’ wealth and not the owner. (Representing Mir Holdings Ltd.)
an equitable balance while meeting varied expectations from appointment of members of sub-committees of Board and senior • Establishing a sound system of risk management and internal
diverse stakeholders. The primary objective of corporate management rests primarily on the Board. The onus of setting controls with adequate safeguards and early warning systems. NB: One of the retired directors (by rotation) Mr. A. M. Shaukat Ali
governance, therefore, is to safeguard stakeholders’ interest on strategic pursuits and goals of the company is also on the Board. expired on 30 July 2020 during the interim period after declaration
a sustainable basis. Good governance is manifested through Structure of the Board of Schedule for Election of Directors of EBL.
The management of EBL as an extended wing of the Board executes
adherence to ethical business norms, a firm commitment to policies and procedures set by the Board for the greater interest of According to Clauses 94 of the Articles of Association of EBL, the As per Clauses 105 & 106 of the Articles of Association of the Bank,
values and compliance with applicable laws and regulations, shareholders and other stakeholders. The risk management and Board of Directors (BoD) currently comprises 11 directors among 3 (three) Directors shall retire by rotation from the office of the BoD
while enhancing shareholders value. overall support functions of the Bank has been designed and kept whom 10 (ten) are Non-executive directors including the Chairman in the 29th AGM and all of them are eligible for re-election.
fully independent from business to guard against any unforeseen and 1 (one) is the Managing Director (Ex-Officio). The Board of
events that undermine the brand value of the Bank. Directors of the Bank appointed 2 (two) Independent Directors as Non-Executive Director
prescribed in the BSEC Corporate Governance Guidelines (No. 1.2),
All the Directors of EBL including the Chairman are Non-Executive
and Section 15 of Bank Company Act 1991.
Directors except the Managing Director & CEO.

Appoint Policy on appointment of Directors

Shareholders
Statutory/ Independent Directors
External
Directors are appointed following relevant provision/clause
Auditors EBL encourages effective representation of independent directors
of Companies Act 1994, Bank Company Act 1991, Corporate
Elect in its Board to infuse diverse knowledge and core competencies
Governance Guidelines of BSEC and Bangladesh Bank, and Articles
Executive relevant to banking business. In compliance with relevant
Committee Report of Association of the Bank.
Corporate Governance Code (CGC), the BoD has appointed 02 (two)
Audit The BoD consists of noted entrepreneurs and business professionals independent directors, which will be placed to the upcoming
Board of Appoints Committee
Appoints having experience and acumen in diverse range of businesses Annual General Meeting (AGM) for shareholders’ approval. The
Directors Chaired by an
Independent and operations. Collectively they have enriched the Board with the independent directors being conversant in the field of financial,
Director knowledge and expertise in banking and finance, IT, accounting,
Risk regulatory and corporate laws enjoy full freedom to carry out their
Management Appoints marketing, administration, and engineering. Their rich and diverse assigned responsibilities. With them they have brought in more
Committee
backgrounds have given the Board a vantage point in directing and than 10 years of corporate management/professional experiences
Management monitoring the Bank to achieve its desired objectives. to the BoD.

Board meeting and attendance

Support
Business The Board of Directors holds meetings on regular basis: usually twice in a month but emergency meetings are called as and when required.
Functions
Management provides information, references and detailed working papers for each item of agenda to all the Directors well ahead of time
fixed for the BoD meeting for consideration. In the meeting, the Chairman of the BoD allocates sufficient time for the Directors to consider
each item of the agenda and allow them to discuss, inquire, and express opinions freely on the items of interest so that they can fulfill their
duties to the best of their abilities. During the year 2020, a total 20 Board Meetings were held; the attendance records are as follows:

Guiding philosophy of governance practices SL. No. Name Position

No. of meetings
Remarks
attended
Principles of good governance are embedded in the core However, the Bank’s corporate governance philosophy encompasses 1. Md. Showkat Ali Chowdhury Chairman 19/20 -
values of EBL, a Bank that strongly believes in inclusive and not only regulatory and legal requirements but also various internal
2. M. Ghaziul Haque Director 15/20 -
sustainable growth. As a locally incorporated bank, two key rules, policies, procedures and best practices of local and global
3. Mir Nasir Hossain Director 18/20 -
regulators-Bangladesh Bank (Central Bank of Bangladesh) banks. As a responsible corporate citizen, the Bank is committed to
and Bangladesh Securities and Exchange Commission (BSEC) sound governance practices based on integrity, openness, fairness, 4. Salina Ali Director 18/20 -
played a major role in shaping governance structure and professionalism and accountability in building confidence among 5. Anis Ahmed Director 15/20 -
practices of the Bank. stakeholders.

82 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 83

 Governance Reports
No. of meetings 31-12-2020
SL. No. Name Position Remarks Sl. Name Position
attended No of Shares Held % of total shares
6. Mufakkharul Islam Khasru Director 16/20
MGH Healthcare Limited
7. Gazi Md. Shakhawat Hossain Director 18/20 5. 16,559,020 2.04%
(Represented by Anis Ahmed) Director
Appointed on 23
8. K.J.S Banu Director 06/06 ZS Holding Ltd.
September 2020 6. Director 16,240,000 2.00%
Appointed on 23 (Represented by Mufakkharul Islam Khasru)
9. Zara Namreen Director 05/06
September 2020 Purnima Construction (Pvt.) Ltd.
7. Director 36,627,403 4.51%
Appointed on 20 October (Represented by Gazi Md. Shakhawat Hossain)
10. Ashiq Imran Independent Director 02/03
2020
8. K. J. S. Banu Director 21,696,407 2.67%
11. Ali Reza Iftekhar Managing Director & CEO 19/20 -
Namreen Power Limited
Expired Director and Directors resigned from office: 9. Director 16,240,000 2.00%
(Represented by Zara Namreen)
1. A. M. Shaukat Ali Director 09/11 Expired on 30 July 2020
Resigned from office 10. Ashiq Imran Independent Director - -
2. Meah Mohammed Abdur Rahim Independent Director 12/14 of the Director on 20 Managing Director &
11. Ali Reza Iftekhar - -
October 2020 CEO
Resigned from office   Total 245,030,885 30.18%
3. Ormaan Rafay Nizam Independent Director 13/14 of the Director on 20
October 2020

N.B: Dr. Toufic Ahmad Choudhury was appointed as Independent Director by the Board of Directors on 09 November 2020 subject to approval Shareholding of CEO, CS, CFO, Head of ICC and top 5 the Bank in accordance with the prescribed policies, principles
of Bangladesh Bank and Shareholders in the next Annual General Meeting (AGM). Salaried Executives and strategies established by the Board and rules, regulations
and guidelines from the Central Bank, BSEC and other regulatory
The Directors who could not attend the meeting(s) were granted leave of absence by the Board. Please refer to Note 14.1 to the Financial Statements of 2020. authorities. Management’s primary responsibilities are to:

Attendance of CFO, Head of ICC and CS in Board Meeting Separation of Chairman and Chief Executive Officer Roles • Manage the operation of the Bank safeguarding interest of
customers and other stakeholders in compliance with the
Chief Financial Officer (CFO), Head of Internal Control & Compliance (ICC) and the Company Secretary (CS) of the Bank attend the meetings of In compliance with Bangladesh Bank BRPD Circular No. 11 and
highest standards of ethics and integrity;
the Board of Directors, provided that the CFO, Head of ICC and/or the CS do not attend such part of a meeting which involves consideration of Circular Letter No. 18 dated 27 October 2013 and Clause 1(4) of BSEC
an agenda item relating to their personal matters. Corporate Governance (CG) Code dated 03 June 2018, we report • Implement the policies and strategic direction established by
that the Chairman of the Board has been elected from among the the Board;
Ownership Composition non-executive Directors and there are clear and defined roles and
• Establish and maintain a strong system of internal controls;
responsibilities of the Chairman and the Chief Executive Officer.
As on 31 December 2020 the Directors of EBL held 30.18% of total shares whereas Financial Institutions and General Public held 10.76% and • Ensure Bank’s compliance with applicable legal and regulatory
59.06% respectively: The Chairman of the Board approves the agenda of the Board requirements.
meetings, assisted by the Managing Director and the Company
31-12-2020 31-12-2019 Secretary. Regular agenda items include approving credits beyond Roles and responsibilities of the Board of Directors
SL. No. Composition
No of Shares Held % of total shares No of Shares Held % of total shares CEO’s authority and aspects of the Bank’s corporate strategy,
The major roles and responsibilities of the Board, among others, are
1 Directors 245,030,885 30.18% 256,202,162 31.56% financial performance, core risks and credit policy, corporate
to set the vision, mission and policies of the Bank and to determine
governance, CSR and organizational structure, human resources
2 General Public 479,452,756 59.06% 467,477,192 57.59% the goals, objectives and strategies to ensure efficient utilization of
policy, customer and services strategies, procurement policy, etc.
3 Financial Institutions 87,315,906 10.76% 88,120,193 10.85% the Bank’s resources. The roles and responsibilities of the Board of
811,799,547 100.00% 811,799,547 100.00% On the other hand, CEO, being the Head of management team, is Directors are outlined below (but not limited to) in compliance with
accountable to the Board and its Committees to run and manage Bangladesh Bank BRPD Circular No. 11 dated 27 October 2013:
Directors’ shareholding status
In compliance with BSEC Notification dated 21 May 2019, all the eligible directors (other than Independent Directors) of EBL have been Major roles and responsibilities Brief Particulars
holding required percentage of shares individually (minimum 2%) as well as jointly (minimum 30%).
Work planning and strategic • Determine the objectives and goals and chalk out strategies and work plans.
Shareholding structure of directors is as follows: management
• Making strategies relating to structural change and reformation for enhancement of institutional
31-12-2020 efficiency and other relevant policy matters.
Sl. Name Position
No of Shares Held % of total shares • Analyze/ monitor the development of implementation of the work plans.
Namreen Enterprise Ltd.
1. Chairman 32,181,422 3.97% • Set the Key Performance Indicators (KPIs) for the CEO & officers immediate two tiers below the
(Represented by Md. Showkat Ali Chowdhury)
CEO, and have it evaluated from time to time.
2. M. Ghaziul Haque Director 26,067,699 3.21%
Mir Holdings Ltd.
3. Director 40,480,059 4.99%
(Represented by Mir Nasir Hossain)
Borak Real Estate Ltd.
4. Director 38,938,875 4.79%
(Represented by Salina Ali)

84 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 85

 • Ensure no participation in or interference into the • The recruitment and promotion of all staffs of the Bank except

Governance Reports
Major roles and responsibilities Brief Particulars
administrative or operational and routine affairs of the Bank. those in the two tiers below him shall rest on the CEO. He shall
Credit and risk management • Formulate policies, strategies, procedures etc. in respect of appraisal of loan proposal, sanction, act in such cases in accordance with the approved ‘EBL people
The specific responsibilities of the Chairman, among others, are to:
disbursement, recovery, reschedule and write-off under the purview of the existing laws, rules management policy’.
and regulations. • Provide overall leadership to the Board, setting vision and
• The authority relating to transfer and disciplinary measures
driving innovation, working closely with the CEO.
• Distribute the power of sanction of loan among the CEO and his subordinate executives as much against the staff, except those at two tiers below the CEO, shall
as possible. • Take a leading role in determining the composition and rest on him. Besides, under the purview of the ‘EBL people
structure of the Board which will involve regular assessment management policy’ approved by the BoD, he shall nominate
• Frame policies for risk management and monitor the compliance of the guidelines of Bangladesh
of the: officers for training and other related issues.
Bank regarding key risk management.
 size of the Board,
Internal control management • To be vigilant on the internal control system of the bank in order to attain and maintain satisfactory Appointment of CFO, Head of ICC and CS
qualitative standard of its loan portfolio.  quality of interaction, harmony and involvement of the
Directors. The Bank appointed a Chief Financial Officer, a Head of Internal
• Establish such an internal control system so that the internal audit process can be conducted Control & Compliance and a Company Secretary as per the policy of
independently from the management. • Set the Board’s Agenda and plan Board Meetings.
the Bank and other regulatory laws and regulations. They are well
• Review the reports submitted by its audit regarding compliance of recommendations made in • Chair all Board Meetings, directing debate towards consensus. conversant in the field of financial, regulatory and corporate laws to
internal and external audit reports and the Bangladesh Bank inspection reports. • Ensure that the Board receives appropriate, accurate, timely carry out their assigned responsibilities.
and clear information.
Human resources management • Framing policies relating to recruitment, promotion, transfer, disciplinary measures, human Independence of Non-Executive Directors
and development resources development etc. and service rules. • Chair the AGM and other Shareholders’ Meetings to foster
effective dialogue with shareholders. All the Non-Executive Directors enjoy full freedom to carry out their
• In no way involve themselves or interfere into or influence over any administrative affairs including coveted responsibilities. They attend Board meetings regularly
recruitment, promotion, transfer and disciplinary measures as executed under the set service rules. • Ensure that the views of shareholders are communicated to and participate in the deliberation and discussions effectively.
the Board as a whole. They get actively involved in setting strategic direction but do not
• Carrying out recruitment, promotion, transfer and punishment of the officers’ immediate two
tiers below the CEO in complying with the service rules. • Work with Chairman of Board Committees. participate in or interfere into the administrative or operational or
routine affairs of the Bank. However, they ensure confidentiality
• Attention to the development of skills of bank's staff in different fields of its business activities • Conduct (if required) on-site inspection of any branch or
of the Bank’s agenda papers, discussions at the Board/Committee
including prudent appraisal of loan proposals, and adoption of modern electronic and information financing activities under the purview of the oversight
Meetings, Notes and Minutes.
technologies and introduction of effective Management Information System (MIS). responsibilities of the Board.
• Compose Code of Ethics for every tier and promote healthy code of conducts for developing a Annual appraisal of the Board’s performance
Roles and Responsibilities of CEO, CFO, CS and Head of ICC
compliance culture.
At AGM shareholders critically appraise the performance of the
The Board of Directors of EBL clearly defines and approves the
Financial management • Finalize and approve annual budget and statutory financial statements. Board and evaluate financial position and performance of the Bank,
respective roles, responsibilities and duties of Chief Executive
its adequacy and effectiveness of internal control system and overall
• Review/monitor the positions in respect of bank's income, expenditure, liquidity, non-performing Officer (CEO), Chief Financial Officer (CFO), Company Secretary (CS)
governance mechanism. The shareholders also ask questions and
asset, capital base and adequacy, maintenance of loan loss provision and steps taken for recovery and Head of Internal Control & Compliance (ICC).
make queries to the BoD during AGM and the Chairman of BoD
of defaulted loans including legal measures.
To set out the following responsibilities of CEO, BRPD Circular gives a patient hearing and responds to all their queries.
• Frame policies and procedures for bank's purchase and procurement activities and accordingly
Letter No. 18 dated 27 October 2013 issued by Bangladesh Bank
approve the distribution of power for making such expenditures. Decision on matters relating to The performance of the Board is appraised based on certain
and Corporate Governance Code issued by BSEC on 03 June 2018
infrastructure development and purchase of land, building, vehicles etc. for the purpose of bank's parameters such as shareholder return, share price, return on capital
has been taken into consideration.
business to be adopted with the approval of the Board. employed, earnings per share etc. of the Bank. The attendance of
• In terms of financial, business and administrative authorities Directors and their active participation in the meeting on various
• Review whether an Asset-Liability Committee (ALCO) has been formed and is working as per
vested upon him by the BoD, the CEO shall discharge his own agenda is ensured in every Board meeting. The Board approves
Bangladesh Bank guidelines.
responsibilities. He shall remain accountable for achievement annual budget each year and monitors the variance quarterly to
Appointment of Chief Executive • Appoint an honest, efficient, experienced and suitable CEO or Managing Director with the approval of financial and business targets by means of business plan, ensure achievement of the target. The Board’s performance is
Officer (CEO) of Bangladesh Bank. efficient implementation thereof and prudent administrative greatly dependent on the achievement (under or over) of budgeted
and financial management. target. Besides, the performance reports of supporting committees
Formation of supporting • Form an executive committee, an audit committee and a risk management committee with
of the Board are also placed in the Board meeting through which
committees the directors. Board can’t form any other permanent, temporary or sub- committee except the • The CEO shall ensure compliance of the Bank Company Act
the performance of the Board members are regularly assessed.
mentioned three committees. 1991 and other relevant laws and regulations in discharging
routine functions of the Bank. Annual evaluation of MD & CEO by the Board
• At the time of presenting any memorandum in the Board
Responsibilities of the Chairman of the Board The overall responsibilities of the Chairman are to: The Board of Directors of EBL clearly defines and approves the roles,
Meeting or Board Committee Meeting, the CEO shall point out
responsibilities and duties of Chief Executive Officer (CEO). Based
To set out the following responsibilities, BRPD Circular No. 11 • Ensure that the Board sets and implements the Bank’s if there is any deviation from the Bank Company Act 1991 and
on these assigned responsibilities, BoD makes annual evaluation of
dated 27 October 2013 issued by Bangladesh Bank and Corporate direction and strategy effectively. other relevant laws and regulations.
MD & CEO. Furthermore, the performance evaluation of MD & CEO
Governance Code issued by BSEC on 03 June 2018 has been taken • Act as the Bank’s lead representative, explaining aims and • The CEO shall report to Bangladesh Bank of issues in violation is done by the Board through various reports featuring financial
into consideration. policies to the shareholders. of the Bank Company Act 1991 or of other laws/regulations. position and performance and:

86 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 87

• Compliance status of various assignments given by the Board To ensure proper accountability and transparency, EBL has three dated 27 October 2013, Corporate Governance Code issued the same as per requirement. Some important roles and

Governance Reports
to CEO and his team from time to time. Board committees namely Executive Committee, Audit Committee by BSEC on 03 June 2018, and other best practice corporate responsibilities of RMC have been described in “Report of the
and Risk Management Committee to oversee and direct the governance guidelines and standards. Some important roles Risk Management Committee of the Board” section of this
• Variance analysis of Budget vs. Actual result and steps taken
operations, performance and strategic direction of the Bank. The and responsibilities of AC as per ToR have been described in report.
by CEO to achieve the budgeted target.
composition of the said Board Committees is presented in the page “Report of the Audit Committee” section of this report.
• Activities of RMC: Major activities of RMC in 2020 have been
• Among the financial parameters, NPL ratio, Growth of Loan & no. 15.
• Internal Control & Compliance Division’s Access to AC: Heads described in “Report of the Risk Management Committee of
Deposit, Cost to Income Ratio, Loans write off and its recovery,
Executive Committee (EC) of Internal Control & Compliance (ICC) and Internal Audit have the Board” section of this report.
Capital to Risk Weighted Assets Ratio, Credit to Deposit Ratio
etc. are the common ones. direct access to the AC as and when required. In addition, the • Meeting of the RMC: The committee is required to conduct
• Appointment and composition: In Compliance with Section AC meets the Head of ICC and the Head of Internal Audit at at least four meetings in a year although it can be more as
Training of Directors 15 Kha (2) of Bank Company Act 1991 and BRPD Circular No. least once in a year, without management being present, to per requirement. The committee may call the CEO, Chief
11 dated 27 October 2013, the Board of Directors of EBL has discuss their remit and any issues arising from the internal
Training of Directors includes providing training and information Risk Officer (CRO) or any executive to attend the committee
re-constituted the Executive Committee (EC) of the Board in audits carried out.
on the latest update related to banking business such as relevant meeting. The RMC held 5 (five) meetings during 2020 and
2020 with four members (maximum limit is seven members).
laws, policy guidelines, circulars, rules and regulations issued • Objectives and activities of the AC: The AC regularly reviews had detailed discussions and review sessions with the CRO
None of them are the members of Audit Committee of the
by the regulatory authorities; so that they could effectively the internal control system of the Bank and the quarterly, half regarding their findings, observations and recommendations
Board. The Company Secretary acts as the secretary of the
discharge the responsibilities. Sometimes special discussion yearly and annual financial statements of the Bank before on issues of Bank affairs that need improvement. The major
committee.
sessions are arranged with the experts on highly technical submission to the Board for consideration. The objectives and areas focused by the RMC during 2020 have been presented
and complex issues. They also participate in the programs and The EC is comprised of 3 (three) Non–Executive Directors and activities of the AC have been described in “Report of the Audit in “Report of the Risk Management Committee of the Board”
seminars organized by various professional bodies at home Managing Director & CEO of the Bank. Details of EC members Committee” section of this annual report. section of this report.
and abroad on business, economic, technical, professional and are stated in page no. 15.
• Meeting of the Audit Committee: The Audit Committee of EBL Benefits provided to Directors and Managing Director
corporate governance issues. • Meeting and responsibilities of EC: The EC of a larger sized held 8 (eight) meetings in 2020 and had detailed discussions
BoD usually acts as a proxy for full BoD; attends a meeting and review sessions with the Head of ICC, Head of Internal According to the Circulars and Guidelines issued by Bangladesh
Directors’ knowledge and expertise in Finance and with short notice and takes decisions to ensure smooth flow Bank, banks in Bangladesh can only provide the following facilities
Audit, External Auditors regarding their findings, observations
Accounting of banking businesses. However, any decision taken by the to the Directors:
and suggestions with corrective measures. The AC instructed
committee has to be subsequently ratified by the full Board.
Two Directors in the Board obtained post-graduation major the management to follow those suggestions and monitored • Chairman: The Chairman of the Board of Directors may be
There were 4 (four) EC meetings held in 2020.
in Accounting from the University of Dhaka having requisite accordingly from time to time. provided an office chamber, a private secretary, an office
expertise in the field of accounting and finance. Other Directors, Audit Committee (AC) The Minutes of the Audit Committee Meetings containing assistant, a telephone in office, a full time car and a mobile
majority of whom are either successful entrepreneurs or seasoned various suggestions and recommendations to the Management phone to be used within country. The Chairman of EBL did not
professionals, are also well conversant in the field of business, The Audit Committee of the Board carries out its functions based
and the Board are placed to the Board for ratification on a accept any support staff and private secretary and any mobile
economics and administration. on the Terms of Reference (ToR) approved by the Board and is
regular basis. The major areas focused by the AC during phone from the Bank.
accountable to the Board of Directors. To make the quorum of the
the year 2020 have been presented in “Report of the Audit • Directors: Directors are entitled to fees and other benefits for
Compliance with corporate governance guidelines AC meeting at least 01 (one) Independent Director has to be present.
The Company Secretary acts as the secretary of the committee. Committee” section of this annual report. attending the Board/sub-committee (EC/AC/RMC) meetings
The status of compliance of Corporate Governance Code issued (The benefits provided to Directors of EBL have been mentioned
by BSEC have been presented in page no. 94-105. K.M. HASAN & • Appointment and composition: In compliance with Risk Management Committee (RMC)
in Note 33 to the Financial Statements).
CO. Chartered Accountants, duly certified the compliance status of Bangladesh Bank BRPD Circular No.11 dated 27 October 2013
• Appointment and composition: In Compliance with BRPD • Managing Director & CEO: Managing Director is paid salary,
corporate governance code and issued a report which is presented and BSEC’s Corporate Governance Code dated 03 June 2018,
Circular No. 11 dated 27 October 2013, the Board of Directors allowances and other facilities according to his service
in page no. 106. Audit Committee (AC) of EBL Board has been re-constituted by
of EBL has formed a three-member Risk Management contract approved by the Board and Bangladesh Bank. (The
the BoD from time to time to review and oversee company’s
Committee (RMC) of the BoD on 07 November 2013 and was benefits provided to MD & CEO of EBL have been mentioned in
Vision, Mission and Strategy of the Bank financial reporting, non-financial corporate disclosures,
last reconstituted with five members in November 2020 Note 32 to the Financial Statements).
internal control systems and compliance to governing laws,
• The vision and mission statement of the Bank approved by the (maximum limit is five members). The RMC has been formed
rules and regulations etc. independently. Details of AC EBL has fully complied with Bangladesh Bank Circulars and
Board of Directors is presented in page no. 11 of this report. to minimize probable risks arisen during implementation of
members are stated in page no. 15. Guidelines.
The said statements are also disclosed in Bank’s website and Board approved policies, procedures and strategies. The RMC
other related publications. • Chairman of the AC: Chairman of the AC is an Independent is entrusted to examine and review whether management Establishment and review of internal control system
Director who performs his duties with full freedom. is properly working on identification, management and
• Strategic priorities which are time to time directed by the
• Members are Non-Executive Directors: All members of the mitigation of credit risk, foreign exchange risk, internal control EBL has a sound system of internal control to safeguard stakeholders’
Board have been presented in page no. 13 of this annual
AC are Non-executive Directors. No Executive of the Bank is and compliance risk, money laundering risk, information and interest. The Board of Directors having ultimate responsibility of its
report.
eligible to become a member of the AC. Also, no member of EC communication technology risk, operational risk, interest rate operations has delegated to the Audit Committee for review of the
• Our sector wise business objectives, strategies, priorities and adequacy and effectiveness of the system of internal control.
is nominated as the member of the AC. risk and liquidity risk and keeping adequate provision and
future business outlooks have been elaborately described in
capital against the said risks.
“Management Discussion and Analysis” section of this report. • Qualification of members of AC: All members of the AC are A review of internal control system has been presented in
financially literate and two members have post-graduation All five members of this RMC are Non–Executive Directors; “Directors’ Report” of this annual report.
Board Committees and their Responsibilities degree in Accounting and Business Administration. Moreover, details of RMC members are stated in page no. 15.
all members of the AC have reasonable knowledge on banking Risk management
To ensure good governance in bank management, Bangladesh • Roles and responsibilities of RMC: It is the responsibility of
business, its operations, and risks involved in it.
Bank issued a circular (BRPD Circular No. 11 dated 27 October RMC to identify and assess risk and guide management to The Risk Management Division (RMD) is responsible to oversee,
2013) allowing banks to form maximum three committees or sub- • Terms of Reference (ToR) of AC: The ToR of the AC has been formulate action plans for minimizing/controlling of risk. The monitor and report all risks in line with the risk appetite set by
committees of the Board. framed in line with the provisions of BRPD Circular No. 11 committee reviews the risk management policy and modify the Risk Management Committee (RMC) of the Board. The RMC

88 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 89

of the Board reviews and monitors the overall risk management Bangladesh Bank BRPD Circular No. 14 dated 25 June 2003. As on confidentiality. All employees of EBL shall take reasonable Specialized trainings have been arranged for BAMLCOs/

Governance Reports
system of the Bank and updates to the Board from time to time. the reporting date, the Bank had funded and non-funded exposures precautions to keep their user ID(s) and password(s) secure. DAMLCOs for AML/CFT measures.
Risk management functions are subject to continuous scrutiny with its subsidiaries, non-funded exposures to some current and • Customer complaints: All employees shall give priority in resolving AMLD has on-boarded an automated sanction screening and
of the Internal Control & Compliance Division (ICCD) to ensure ex-directors and credit card limit to some of its Directors. Besides, customer complaints quickly, fairly and record them accordingly. transaction monitoring software (AML System Velocity) to
appropriateness and integrity of the risk management practices. the Bank had procured some goods and services from the entities They shall exude empathy by responding to the customers’ establish a robust monitoring system. Currently, eight sanction
of related parties during 2020. Please refer to Annexure C1 of
The risk management system of EBL has been described in feelings. Employees will solve the problem in a right way. lists; UN, OFAC SDN, OFAC non-SDN, EU, UK, Canadian, Australian
financial statements for details of related party transactions.
“Risk Management” section of this report. Also the roles and Compliance of Code of Conduct and Ethical Guidelines and a local sanction list, are incorporated in the system for
responsibilities of RMC and major areas focused by RMC in Code of Conduct and Ethical Guidelines sanction screening. Moreover, 60 transaction monitoring rules
2020 have been presented in “Report of the Risk Management The Board of Directors complies with all applicable laws and and 58 transaction monitoring reports are incorporated in
Committee of the Board” section of this report. EBL has separate Code of Conduct and Ethical Guidelines for the Board regulations of the land and with the Memorandum and Articles of transaction monitoring system to identify suspicious/unusual
and employees of the Bank. The Code of Conduct outlines the values, Association and the policies of the Bank adopted by the Board from transactions. To put it in a nutshell, AML System Velocity has
Appointment of external auditors ethical principles and expected behaviors for all EBL employees. time to time. enhanced monitoring, reporting, and escalation of suspicious
Highlights of our Code of Conduct and Ethical Guidelines are as follows:
The shareholders of EBL in the 28th AGM held on 5 August 2020 transactions.
All the employees are committed to adhere to the Code of Conduct
appointed A. Qasem & Co., Chartered Accountants, as the statutory • Prevent money laundering and transaction structuring: and are expected to demonstrate highest level of ethical standards. In compliance with BFIU Circular No. 24 dated 10 December 2019,
auditors for the year 2020. Employees shall comply with local laws and regulations on They are also expected to undertake at all times to comply with or EBL has introduced Board approved “EBL Prevention of Trade
money laundering and prevention of fraud. Any suspicious adhere to all applicable laws and regulations of the country, policies
Services not provided by external auditors Based Money Laundering Policy” (TBML Policy) to bring the trade
behavior of customers shall be reported immediately. and instructions of the Bank, wherever they operate. transactions under greater scrutiny.
In compliance with the provision 7 of BSEC Corporate Governance • Bribery: It is contrary to the code to offer, promise and
Code, we declare that A. Qasem & Co., Chartered Accountants, was authorize either directly or indirectly, to pay any other person
Effective Anti-Money Laundering and Anti-terrorism Whistleblowing and Anti-Fraud Program
not engaged in any of the following services during 2020 while any financial or other advantage in order to secure an improper Program
conducting statutory audit: Whistleblowing and Anti-fraud program is a tool for bank to fight
advantage, or direct business to any other person or entity.
EBL has set tone at the top to combat money laundering and against fraud-forgery and corruption. EBL has been promoting
• Appraisal or valuation services or fairness opinions. • Borrowings: An employee shall not borrow money from any terrorist financing. The Board has given utmost priority to Anti- whistleblowing for any suspected misdeed or offence observed
• Financial information system design and implementation. customer or employees of the Bank or from person(s) likely to Money Laundering and Anti-Terrorism Program. To build a by employees. As per Speak up Policy of EBL, employees are
have dealings with the Bank. vigorous anti-money laundering and anti-terrorism program, EBL encouraged, guided and protected for blowing whistle against any
• Book-keeping or other services related to accounting records
• Avoid conflict of interest: Employees shall not use their has ensured participation and contribution of senior management unusual activities they may encounter. Whistleblower can report
or financial statements.
position in the Bank for personal gain or to obtain benefits for in AML & CFT activities. his/her concern in person, in writing, via email or over telephone
• Broker-dealer services. and anonymity of that person are maintained.
themselves and members of their families or friends.
As per BFIU Circular No. 26 dated 16 June 2020, EBL has formed a
• Actuarial services. • Outside employment: Employees are not allowed to be Central Compliance Committee (Triple C) comprising of Chief Anti To develop an environment that assists in preventing fraud,
• Internal audit services or special audit services.  employed elsewhere while they are with the Bank as full-time Money Laundering Compliance Officer (CAMLCO), Head of Retail & including misappropriation, abuse and corruption and theft risks
employees. Employees are not allowed to join the management SME Banking, Head of Operations, Chief Risk Officer (CRO), Chief across the Bank, EBL has Fraud and Theft Risk Prevention and
• Audit/certification services on compliance of corporate
of any company in order to avoid conflict of interests. Technology Officer (CTO), Head of Human Resources, Head of Cards Management Policy. This policy has outlined the measures to
governance code issued by BSEC.
• Speculation in stocks: Employees and their dependents Operations, Deputy CAMLCO, and Head of Monitoring. Triple C prevent fraud and theft to safeguard the Bank.
• Any service that the Audit Committee determines.
shall not speculate/trade in stocks, shares, securities or is chaired by CAMLCO who is responsible for overall AML & CFT
• Any other service that creates conflict of interest. Compliance of the Bank. A dedicated department “Anti-Money Internal Control & Compliance Division (ICCD) under supervision of
commodities of any description nor be connected with the
Laundering Department (AMLD)”, headed by Deputy CAMLCO, acts Head of ICC establishes and maintains an effective internal control
No partner or employee of A. Qasem & Co., Chartered Accountants, formation or management of a joint-stock company.
as executive arm of Triple C. system throughout the Bank with respect to fraud/theft risk. In
nor any family members of them held any share of EBL during the • Participation in political activities: An employee shall not
addition, ICCD conducts surprise audit or investigations along with
tenure of their audit assignment. directly or indirectly participate in any political activities The roles of Central Compliance Committee (Triple C) are regular audit as instructed by the Board or Audit Committee of the
during employment with the Bank. defining and developing AML/CFT compliance policies,
Highlights on Central Bank inspections Bank and submits reports with observations and recommendations
• Representation to Directors: An employee shall not make strategies & programs aligned with international and national to the Audit Committee at regular interval.
The role of central bank inspection has been pivotal to ensure that any personal representation to Directors of the Bank. All standards and regulations and evaluate the same from time
banks are compliant to relevant laws and regulations. Bangladesh representations must be addressed to the Managing Director to time, supervising the effective implementation of AML/CFT Compliance with Secretarial Standards
Bank conducted a comprehensive inspection in 2020 covering Head through proper channel. annual program of AMLD jointly with CAMLCO, meeting at least
The Institute of Chartered Secretaries of Bangladesh (ICSB)
Office, some branches, core risks and departments of EBL like every • Acceptance of Gift: Money shall never be accepted as a gift. It quarterly to review policies, assessing overall compliance status
has framed and issued Secretarial standards to streamline and
year and issued 14 inspection reports during 2020. Our compliance is not allowed to accept gifts for the purpose of influencing on of the Bank and issue directives in this regard, submitting half
standardize the diverse secretarial standards. ICSB recognizing the
status was very good regarding observations of inspection reports. a decision. yearly Reports to MD & CEO on progress of implementation of
need for integration, harmonization and standardization of diverse
Response on major issues had been provided in timely manner. AML/CFT related measures with recommendations, directing
• Habitual lateness: Habitual lateness is not acceptable in EBL secretarial practices, has constituted the Secretarial Standard on
The Board instructed management to comply with Bangladesh AMLD to issue instructions for adherence by branches and
and it is considered to be an offense. If the employee continues to Board (SSB) for implementation of Secretarial Standards of Board
Bank’s recommendations meticulously. departments relating to policy and procedures on KYC/CDD/
be late at office that will warrant immediate disciplinary action. of Directors (BSS-1), Secretarial Standards on General Meeting
EDD, Transaction Monitoring/Screening, etc. and nominating
Related party transactions • Honesty and integrity: An employees must act honestly and (BSS-2), Secretarial Standard on Minutes (BSS-3) and Secretarial
Branch Anti-Money Laundering Compliance Officers
with integrity at all times. He/she must act fairly and equitably Standard on Dividend (BSS-4) with the objective of formulating
The Bank in its ordinary course of business undertook financial (BAMLCOs)/ Department Anti-Money Laundering Compliance
when dealing with the public, customer and other employees. Bangladesh Secretarial Standards.
transactions with some entities or persons that fall within the Officers (DAMLCOs) having requisite skill sets, experience and
definition of ‘Related Party’ as contained in IAS 24 (Related Party • Password sharing: Any user ID and password provided by rank. Triple C meetings have been held quarterly and decisions The Board of Directors of EBL in the Board Meeting held on
Disclosures) and relevant provisions of Bank Company Act 1991 and the Bank to any employee shall be maintained with highest taken in these meetings have been implemented timely. 27 December 2017 discussed and accorded approval to the

90 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 91

Management’s proposal for adopting the Bangladesh Secretarial sufficient time to go through the report and freely provide their Despite of tireless effort, ICCD can provide only reasonable audits are notified to the appropriate level (business/support

Governance Reports
Standards (BSS) of ICSB. valuable comments and suggestions in the AGM. assurance - not absolute assurance regarding the achievement of heads) and significant audit findings are reported to the Managing
objectives. Collective effort of the Bank can corroborate compliance Director & CEO and to the Audit Committee of the Board.
Governance of Board of Directors of Subsidiary The Glimpses of the 28th AGM have been presented in
culture, drive toward its objectives and the achievement of its
“Stakeholders Information” section of this annual report. In 2020, most of the Branches/Divisions/Departments got
Companies mission, and minimizes surprises along the way.
• Redressal of shareholders complaints: Any complaint, received satisfactory audit rating. Followings are the highlights of 2020 and
EBL has fully complied with the following provisions of BSEC Structure of ICCD: As per the ‘Guidelines on Internal Control & projection for 2021:
at AGM or throughout the year, related to transfer and transmission
Corporate Governance Code regarding governance of Board of Compliance in Banks’ issued by Bangladesh Bank vide BRPD
of shares, non-receipt of Annual Reports, and dividends timely
Directors of Subsidiary Companies: Circular No. 06 dated 04 September 2016, the Head of ICCD is No. of No. of divisions/ No. of
and other share related matters is resolved lawfully in time. Year
reporting to the Managing Director & CEO. However, the Head of Branches departments subsidiaries
• At least one Independent Director of EBL is a Director on the The Company Secretary of EBL plays the role as a Chief Audit, despite being a part of ICCD, is reporting directly to and is
Board of the subsidiary Company. 2020 (Revised Plan) 45 31 2
Compliance Officer in handling any such issue related to our responsible to the Audit Committee of the Board.
• The minutes of the Board meetings of the subsidiary shareholders, investors etc.
Depending on the size and complexity of operations of the Bank, 2020 ( Actual) 45 31 2
companies are being placed for review in the following Board
Environmental and social obligations ICCD of EBL comprises of four departments namely: Audit,
meeting of EBL. 2021 ( Planned) 85 44 4
Monitoring, Compliance, and Legal.
• The Board of Directors of EBL reviews the affairs of the We believe that every small “GREEN” step taken today would
subsidiary companies and it has been duly stated in minutes go a long way in building a greener future. As an environment Monitoring Compliance Monitoring department: The monitoring department ensures
of the respective Board meeting. responsive Bank we initiated Go Green campaign. EBL is the first overall efficacy of EBL’s internal control on a perpetual basis.
Bank to claim refinance from the Central Bank for carbon credits. A Monitoring of key risks is a part of the daily activities of the Bank
• The Audit Committee of EBL reviews the Financial Statements,
detailed description regarding environmental and social obligation ICCD as well as periodic evaluations of the business lines and support
in particular the investments made by the subsidiary
has been presented in “Sustainability Report” and “Corporate units. The frequency of monitoring diverse activities of our Bank is
companies.
Social Responsibility” sections of this Annual Report. determined by considering the associated risks and the frequency
Audit Legal
Human capital and nature of deviations occurring in the operating environment.
Internal Controls: the watchdog of transparency and
accountability Audit department: Audit Department of EBL is applying risk Monitoring consists of the following interrelated elements:
Employee first is the bracing motto of EBL. Our core brand has
based internal audit methodology for carrying out audits. Under
always been our employees, appreciated for their passion to • Establishing a better control and compliance culture;
Internal Control & Compliance Division (ICCD) of EBL is risk-based internal audit, the focus shifts from the full-scale
perform. For us employees are the best brand. Our Human
committed to consistently meeting organizational goals for transaction testing to risk identification, prioritization of audit • Risk recognition and assessment;
Resources Department is also the first in Bangladesh to achieve
operational effectiveness and efficiency, accurate reporting, and areas and allocation of audit resources in accordance with the
ISO certification for its commitment to quality HR Practice in People • Control activities and segregation of duties;
compliance with laws, regulations and policies. Internal control risk assessment. Audit department of EBL functions based on
Management. • Information and communication; and
system is comprised of all of the financial, operational and Annual Audit Plan approved by the Audit Committee of the Board to
The details discussion on the Bank’s Human Capital has been other control systems which are used across all areas within provide vital information about risks and controls and to assist the • Operational activities and correcting deficiencies.
presented in “HR: Treating People with Care’ section under the Bank. Generally, employees at the department-level are management in the following ways:
Some of the major tools and functions used by monitoring
“Management Discussion & Analysis” of this report. primarily responsible for internal control in their departments
• Identification of gap in policy and procedures with the business department are:
and hence, participation of every individual is vital. Prime
Communication with stakeholders and its operation.
responsibilities of ICCD are to ensure monitoring, follow-up, • Off-site Supervision through system generated reports and
• Identification of breach in policy and procedures against
• Communication with shareholders: The assigned desk independent evaluation and timely reporting to competent archives.
internal and regulatory policies & procedures.
under Company Secretariat plays an important role to make authority systematically in order to ensure that all the bank
• Departmental Control Function Checklists (DCFCL) for
effective communication with its shareholders and other activities are performed in accordance with applicable policies, • Assessment of qualitative and quantitative risk of the business.
department/branch.
stakeholders. Shareholders and other stakeholders of the methods, instructions and limits. • Recommending remedial course of actions, where necessary.
• Quarterly Operations Report (QOR) monitoring.
Bank may contact to this Department during office hour for The audit department of EBL is independent from the internal
ICCD monitors, examines and reviews the control activities of
any sort of information and queries. Common services include control process in order to avoid any conflict of interest and it • Prime Risk Indicator (PRI).
the various departments on an on-going basis to assess the
but not limited to allow or rejection of transfer or transmission is given appropriate standing within the Bank to carry out its • Branch/department spot check/ surprise check etc.
effectiveness of the controls and recommend corrective actions
of shares, issue of duplicate certificates, allotment of shares assignments. The management of EBL ensures that the internal
where required. Internal control facilitates effectiveness and • Counterparty limit (Banks and NBFIs) and Dealers’ Limits.
issued from time to time, opening and operation of bank audit staff performs their duties with objectivity and impartiality.
efficiency of operations, reduces the risk of asset loss, and helps to
accounts for payment of dividend, redemption of paper • Value at risk (VaR), exchange position limit, forward swap gap
ensure compliance with laws and regulations. Results and status of internal audit in 2020: In 2020, annual
shares and the listing of securities on stock exchanges limit, CRR & SLR.
etc. Furthermore, EBL provides updated information in its Preventive control measures are prioritized and are designed to audit plan was revised in consideration of pandemic and the
• Self-assessment of anti-fraud internal controls on half yearly
website from time to time for the shareholders and other audit department conducted audit of 45 branches, 31 divisions/
deter the occurrence of an undesirable event. Detective controls basis as per DOS circular letter no. 10 dated 09 May 2017 and
stakeholders of the Bank. departments and 2 subsidiaries of the Bank as per revised audit plan.
are designed to identify operational weaknesses and help effect reporting to DOS after getting compliance certification from
After finalization of audit report, audit rating is calculated based on
• Policy on ensuring participation of shareholders at AGM: To corrective actions. Control activities normally cover all key respective areas of the Bank.
audit findings as well as EBL Audit Policy & Guidelines. Those Audit
ensure effective participation of shareholders in AGM, EBL areas of the Bank and address items such as organizational
ratings are informed to the related management with audit report. All monitoring functions are adequately documented and reported
publishes notice of AGM in daily newspapers with necessary structures, committee compositions and authority levels, officer
on a timely basis to the appropriate level of management.
details within reasonable time-frame. The AGM normally takes approval levels, access controls (physical and electronic), audit Major audit findings include, but not limited to, different types of
place in a well-known place and at a convenient time. Annual programs, monitoring procedures, remedial actions, and reporting operational lapses due to human error, non-compliance of internal Compliance department: Compliance department is entrusted with
Reports are circulated as per the provision of Companies Act 1994 mechanisms. These control measures help Bank to identify policies or circulars, lack of thorough knowledge about relevant the responsibility of upholding compliance culture throughout the
and related Notification issued by BSEC, so that shareholders get potential risk issues before exposing wide open to it. laws and regulations etc. The deficiencies identified during the Bank by following certain rules, regulations, guidelines and policies

92 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 93

issued by regulators and formulated by the Bank itself. This department Finance, Law enforcing agencies and other regulators.

Governance Reports
Compliance Status
ensures compliance of obligatory laws, rules, and guidelines in every • Advice and guide departments and branches in resolving (Put √ in the appropriate
units of the Bank and provide necessary guidance. This department various compliance issues. Condition
Title column) Remarks
maintains liaison with regulators at all levels and notify the concerned No.
• Checking whether the appropriate policies include (a) top Not
units/departments regarding the regulatory changes. Complied
level review, (b) appropriate activity controls for different complied
Some major functions of this department are as follows: departments and divisions, (c) system of approval and
1(2)(b)(iii) Who has not been an executive of the Company in immediately √
authorizations, (d) appropriate segregation of duties and
• Work as contact point of Bangladesh Bank and other regulators. preceding 2 (two) financial years;
personnel are not assigned with conflicting responsibilities.
• Ensure proper implementation of all regulatory policies of 1(2)(b)(iv) Who does not have any other relationship, whether pecuniary √
Bangladesh Bank. Legal department: Legal department of ICCD safeguards the Bank or otherwise, with the Company or its Subsidiary or Associated
by ensuring legal support to all of its branches and departments. It Companies.
• Respond to queries of Bangladesh Bank and ensure meticulous
compliance of their recommendations. performs drafting, vetting and streamlining of various agreements 1(2)(b)(v) Who is not a member or TREC (Trading Right Entitlement √
and contracts for all business and support functions of the Bank. It Certificate) Holder, Director or Officer of any Stock Exchange;
• Ensure compliance of internal and external audit observations
supervises and monitors the legal issues/cases by and against the 1(2)(b)(vi) Who is not a Shareholder, Director excepting Independent Director √
and follow-up, if necessary.
Bank and ensures appropriate legal assistance on a diverse range or officer of any member or TREC Holder of Stock Exchange or an
• Ensure compliance of various queries of regulatory body’s
of substantive and procedural questions of law. Intermediary of the Capital Market;
like- Tax Authority, Anti-Corruption Commission, Ministry of
1(2)(b)(vii) Who is not a partner or an executive or was not a partner or an √
executive during the preceding 3 (three) years of the concerned
Company’s Statutory Audit firm or Audit Firm engaged in
Internal Audit Services or audit firm conducting special Audit or
BSEC Code of Corporate Governance: Our Compliance Status Professional certifying compliance of this Code.
1(2)(b)(viii) Who is not Independent Director in more than 5 (five) listed √
Status of Compliance with the conditions imposed through Bangladesh Securities and Exchange Commission’s (BSEC) Notification No.
Companies.
BSEC/CMRRCD/2006-158/ 207/Admin/80 dated 03 June 2018 issued under Section 2CC of the Securities and Exchange Ordinance, 1969 is
as follows (as per Annexure-C): 1(2)(b)(ix) Who has not been convicted by a Court of competent jurisdiction √
as a defaulter in payment of any loan or any advance to a Bank or
Report under Condition No. 9.00: a Non-Bank Financial Institution (NBFI).
1(2) (b) (x) Who has not been convicted for a Criminal Offence involving moral √
Compliance Status
turpitude.
(Put √ in the appropriate
Condition 1(2) (c) The Independent Director (s) shall be appointed by the Board and √
Title column) Remarks
No. approved by the Shareholders in the Annual General Meeting
Not
Complied (AGM);
complied
1(2) (d) The post of Independent Director (s) cannot remain vacant for √
1. Board of Directors more than 90 (ninety) days; and
1(1) Size of the Board of Directors √ 1(2)(e) The tenure of office of an Independent Director shall be for a period √
The total number of members of the Company’s Board of Directors of 3 (three) years, which may be extended for 1 (one) tenure only.
shall not be less than 5 (five) and more than 20 (twenty). 1(3) Qualification of Independent Director
1(2) Independent Directors
1(3)(a) Independent Director shall be a knowledgeable individual with √
1(2) (a) At least one-fifth (1/5) of the total number of Directors in the √
integrity who is able to ensure compliance with financial laws,
Company’s Board shall be Independent Directors.
regulatory requirements and corporate laws and can make
1(2) (b) Independent Director means a Director-
meaningful contribution to the business.
1(2)(b)(i) Who does not hold any Share in the Company or holds less than One √
1(3)(b) Independent Director shall have following qualifications:
Percent (1%) Shares of the total Paid-Up Shares of the Company;
1(2)(b)(ii) Who is not a Sponsor of the Company or is not connected with √ 1(3)(b)(i) Business Leader who is or was a Promoter or Director of an unlisted √
the Company’s any Sponsor or Director or Nominated Director Company having minimum paid-up capital of Tk.100.00 million or
or Shareholder of the Company or any of its Associates, Sister any listed Company or a member of any national or international
Concerns, Subsidiaries and Parents or holding entities who holds chamber of commerce or business association; or
one percent (1%) or more shares of the total paid-up shares of
1(3)(b)(ii) Corporate Leader who is or was a top level executive not lower than N/A
the Company on the basis of family relationship and his or her
Chief Executive Officer or Managing Director or Deputy Managing
family members also shall not hold above mentioned shares in the
Director or Chief Financial Officer or Head of Finance or Accounts
Company:
or Company Secretary or Head of Internal Audit and Compliance or
Provided that spouse, son, daughter, father, mother, brother, sister, Head of Legal Service or a candidate with equivalent position of an
son-in-law and daughter-in-law shall be considered as family unlisted Company having minimum paid up capital of Tk.100.00
members; million or of a listed Company; or

94 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 95

 Governance Reports
Compliance Status Compliance Status
(Put √ in the appropriate (Put √ in the appropriate
Condition Condition
Title column) Remarks Title column) Remarks
No. No.
Not Not
Complied Complied
complied complied
1(3)(b)(iii) Former official of the Government or Statutory or Autonomous or N/A 1(5)(vi) A detailed discussion on related party transactions along with √ Please refer to Annexure C & C1
Regulatory Body in the position not below 5th Grade of the National a statement showing amount, nature of related party, nature
Pay Scale, who has at least educational background of Bachelor of transactions and basis of transactions of all related party
Degree in economics or commerce or business or law; or transactions;
1(3)(b)(iv) University Teacher who has educational background in Economics √ 1(5)(vii) A statement of utilization of proceeds raised through public issues, N/A
or Commerce or Business Studies or Law; or rights issues and/or any other instruments;
1(3)(b)(v) Professional who is or was an advocate practicing at least in the N/A 1(5)(viii) An explanation if the financial results deteriorate after the Company N/A
High Court Division of Bangladesh Supreme Court or a Chartered goes for Initial Public Offering (IPO), Repeat Public Offering (RPO),
Accountant or Cost and Management Accountant or Chartered Rights Share Offer, Direct Listing, etc.;
Financial Analyst or Chartered Certified Accountant or Certified 1(5)(ix) An explanation on any significant variance that occurs between √
Public Accountant or Chartered Management Accountant or Quarterly Financial performances and Annual Financial
Chartered Secretary or equivalent qualification; Statements;
1(3)(c) The Independent Director shall have at least 10 (ten) years of √ 1(5)(x) A statement of remuneration paid to the Directors including √ Please refer to Note 33 of FS.
experiences in any field mentioned in clause (b); Independent Directors;
1(3)(d) In special cases, the above qualifications or experiences may be N/A 1(5)(xi) A statement that the financial statements prepared by the √
relaxed subject to prior approval of the Commission. Management of the issuer Company present fairly its state of
1(4) Duality of Chairperson of the Board of Directors and Managing Director or Chief Executive Officer affairs, the result of its operations, cash flows and changes in
1(4)(a) The positions of the Chairperson of the Board and the Managing √ equity;
Director (MD) and/or Chief Executive Officer (CEO) of the Company 1(5)(xii) A statement that proper books of account of the issuer Company √
shall be filled by different individuals; have been maintained;
1(4)(b) The Managing Director (MD) and/or Chief Executive Officer (CEO) √ 1(5)(xiii) A statement that appropriate accounting policies have been √
of a listed Company shall not hold the same position in another consistently applied in preparation of the financial statements
listed Company; and that the accounting estimates are based on reasonable and
1(4)(c) The Chairperson of the Board shall be elected from among the √ prudent judgment;
non-executive Directors of the Company; 1(5)(xiv) A statement that International Accounting Standards (IAS) or √ Departure has been adequately
1(4)(d) The Board shall clearly define respective Roles and Responsibilities √ International Financial Reporting Standards (IFRS), as applicable explained in Note 2.1 to the
of the Chairperson and the Managing Director and/or Chief in Bangladesh, have been followed in preparation of the financial Financial Statements.
Executive Officer; statements and any departure there from has been adequately
disclosed;
1(4)(e) In the absence of the Chairperson of the Board, the remaining √
Members may elect one of themselves from non-executive 1(5)(xv) A statement that the system of internal control is sound in design √
Directors as Chairperson for that particular Board’s Meeting; and has been effectively implemented and monitored;
the reason of absence of the regular Chairperson shall be duly 1(5)(xvi) A statement that minority Shareholders have been protected from √ Please refer to Directors’
recorded in the Minutes of the Board Meeting. abusive actions by, or in the interest of, controlling Shareholders Responsibility Statement
1(5) The Directors’ Report to Shareholders acting either directly or indirectly and have effective means of
redress;
1(5)(i) An industry outlook and possible future developments in the √
industry; 1(5)(xvii) A statement that there is no significant doubt upon the issuer √ No doubts upon EBL’s ability to
Company’s ability to continue as a going concern, if the issuer continue as a going concern.
1(5)(ii) The segment-wise or product-wise performance; √ Please refer to MD&A Section
Company is not considered to be a going concern, the fact along
1(5)(iii) Risks and concerns including internal and external risk factors, √ with reasons there of shall be disclosed;
threat to sustainability and negative impact on environment, if any;
1(5)(xviii) An explanation that significant deviations from the last year’s √
1(5)(iv) A discussion on Cost of Goods sold, Gross Profit Margin and Net √ Discussion on interest income, operating results of the issuer Company shall be highlighted and
Profit Margin, where applicable; expense, operating and net the reasons thereof shall be explained;
profit provided.
1(5)(xix) A statement where key operating and financial data of at least √
1(5)(v) A discussion on continuity of any extraordinary activities and their N/A preceding 5 (five) years shall be summarized;
implications (gain or loss);
1(5)(xx) An explanation on the reasons if the issuer Company has not N/A
declared dividend (cash or stock) for the year;

96 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 97

 Governance Reports
Compliance Status Compliance Status
(Put √ in the appropriate (Put √ in the appropriate
Condition Condition
Title column) Remarks Title column) Remarks
No. No.
Not Not
Complied Complied
complied complied
1(5)(xxi) Board’s statement to the effect that no bonus share or stock N/A 1(5)(xxvi) Declaration or Certification by the CEO and the CFO to the Board √
dividend has been or shall be declared as interim dividend; as required under condition No. 3(3) shall be disclosed as per
1(5)(xxii) The total number of Board meetings held during the year and √ Annexure-A;
attendance by each Director; 1(5)(xxvii) The Report as well as certificate regarding compliance of √
1(5)(xxiii) A Report on the pattern of Shareholding disclosing the aggregate conditions of this Code as required under condition No. 9 shall be
number of Shares (along with name-wise details disclosed as per Annexure-B and Annexure-C.
1(6) Meetings of the Board of Directors
where stated below) held by:
1(6) The Company shall conduct the Board Meetings and record the √
1(5)(xxiii)(a) Parent or Subsidiary or Associated Companies and other related √
Minutes of the Meetings as well as keep required Books and
parties (name-wise details);
records in line with the provisions of the relevant Bangladesh
1(5)(xxiii)(b) Directors, Chief Executive Officer, Company Secretary, Chief √ Please refer to Note 14.1 of the
Secretarial Standards (BSS) as adopted by the Institute of Chartered
Financial Officer, Head of Internal Audit and Compliance and their FS.
Secretaries of Bangladesh (ICSB) in so far as those standards are
spouses and minor children (name-wise details);
not inconsistent with any condition of this Code.
1(5)(xxiii)(c) Executives; and √ Please refer to Note 14.1 of the
1(7) Code of Conduct for the Chairperson, other Board members and Chief Executive Officer
FS.
1(7) (a) The Board shall lay down a Code of Conduct, based on the -
1(5)(xxiii)(d) Shareholders holding ten percent (10%) or more voting interest in √ Please refer to Note 14.1 of the
recommendation of the Nomination and Remuneration Committee
the Company (name-wise details); FS.
(NRC) at condition No. 6, for the Chairperson of the Board, other
1(5)(xxiv)(a) A brief Resume of the Director; √ Board Members and Chief Executive Officer of the Company; Please refer to the Condition
1(5)(xxiv)(b) Nature of his or her expertise in specific functional areas; and √ 1(7)(b) The Code of Conduct as determined by the NRC shall be posted on - No. 6
1(5)(xxiv)(c) Names of companies in which the person also holds the √ Please refer to Annexure C of the website of the Company.
Directorship and the membership of committees of the Board; the FS. 2. Governance of Board of Directors of Subsidiary Company
1(5)(xxv) A Management’s Discussion and Analysis signed by CEO or MD √ Please refer to Managing 2(a) Provisions relating to the composition of the Board of the holding √ EBL Finance (HK) Limited [Reg:
presenting detailed analysis of the Company’s position and Director & CEO’s Review in MD Company shall be made applicable to the composition of the Board Hong Kong] complied with the
operations along with a brief discussion of changes in the financial & A Section. of the subsidiary Company; same as per their respective
statements, among others, focusing on: Rules & Regulations.
2(b) At least 1 (one) Independent Director on the Board of the holding √
1(5)(xxv)(a) Accounting Policies and estimation for preparation of Financial √ Company shall be a Director on the Board of the subsidiary
Statements; Company;
1(5)(xxv)(b) Changes in accounting policies and estimation, if any, clearly √ 2(c) The Minutes of the Board meeting of the subsidiary Company shall √
describing the effect on financial performance or results and be placed for review at the following Board meeting of the Holding
financial position as well as cash flows in absolute figure for such Company;
changes;
2(d) The Minutes of the respective Board meeting of the holding √
1(5)(xxv)(c) Comparative analysis (including effects of inflation) of financial √ Company shall state that they have reviewed the affairs of the
performance or results and financial position as well as cash flows subsidiary Company;
for current financial year with immediate preceding five years
2(e) The Audit Committee of the holding Company shall also review the √
explaining reasons thereof;
Financial Statements, in particular the investments made by the
1(5)(xxv)(d) Compare such financial performance or results and financial √ subsidiary Company.
position as well as cash flows with the peer industry scenario;
3. Managing Director (MD) or Chief Executive Officer (CEO), Chief Financial Officer (CFO), Head of Internal Audit and
1(5)(xxv)(e) Briefly explain the financial and economic scenario of the country √
Compliance (HIAC) and Company Secretary (CS)
and the globe;
3(1) Appointment
1(5)(xxv)(f) Risks and concerns issues related to the financial statements, √
3(1)(a) The Board shall appoint a Managing Director (MD) or Chief √
explaining such risk and concerns mitigation plan of the Company;
Executive Officer (CEO), a Company Secretary (CS), a Chief Financial
and
Officer (CFO) and a Head of Internal Audit and Compliance (HIAC);
1(5)(xxv)(g) Future Plan or Projection or forecast for Company’s operation, √
3(1)(b) The positions of the Managing Director (MD) or Chief Executive √
performance and financial position, with justification thereof, i.e.,
Officer (CEO), Company Secretary (CS), Chief Financial Officer (CFO)
actual position shall be explained to the Shareholders in the next
and Head of Internal Audit and Compliance (HIAC) shall be filled by
AGM;
different individuals;

98 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 99

 Governance Reports
Compliance Status Compliance Status
(Put √ in the appropriate (Put √ in the appropriate
Condition Condition
Title column) Remarks Title column) Remarks
No. No.
Not Not
Complied Complied
complied complied
3(1)(c) The MD or CEO, CS, CFO and HIAC of a listed Company shall not √ 5(2)(b) The Board shall appoint members of the Audit Committee who shall √
hold any executive position in any other Company at the same be non- executive Directors of the Company excepting Chairperson
time; of the Board and shall include at least 1 (one) Independent Director;
3(1)(d) The Board shall clearly define respective Roles, Responsibilities √ 5(2)(c) All members of the Audit Committee should be ‘Financially √
and Duties of the CFO, the HIAC and the CS; Literate’ and at least 1 (one) member shall have accounting or
3(1)(e) The MD or CEO, CS, CFO and HIAC shall not be removed from √ related financial management background and 10 (ten) years of
their position without approval of the Board as well as immediate such experience;
dissemination to the Commission and Stock Exchange (s). 5(2)(d) When the term of service of any Committee member expires or √ No such instance
3(2) Requirement to attend Board of Directors’ Meetings there is any circumstance causing any Committee member to be
unable to hold office before expiration of the term of service, thus
3(2) The MD or CEO, CS, CFO and HIAC of the Company shall attend the √
making the number of the Committee members to be lower than
meetings of the Board: Provided that the CS, CFO and/or the HIAC
the prescribed number of 3 (three) persons, the Board shall appoint
shall not attend such part of a meeting of the Board which involves
the new Committee member to fill up the vacancy immediately
consideration of an agenda item relating to their personal matters.
or not later than 1 (one) month from the date of vacancy in the
3(3) Duties of Managing Director (MD) or Chief Executive Officer (CEO) and Chief Financial Officer (CFO) Committee to ensure continuity of the performance of work of the
3(3)(a) The MD or CEO and CFO shall certify to the Board that they have Audit Committee;
reviewed Financial Statements for the year and that to the best of 5(2)(e) The Company Secretary shall act as the secretary of the Committee; √
their knowledge and belief:
5(2)(f) The Quorum of the Audit Committee meeting shall not constitute √
3(3)(a)(i) Financial Statements do not contain any materially untrue √ Please refer to the Statement without at least 1 (one) Independent Director.
statement or omit any material fact or contain statements that on Integrity of FS by MD & CEO
5(3) Chairperson of the Audit Committee
might be misleading; and and CFO
5(3)(a) The Board shall select 1 (one) member of the Audit Committee to be √
3(3)(a)(ii) Financial Statements together present a true and fair view of the √
Chairperson of the Audit Committee, who shall be an Independent
Company’s affairs and are in compliance with existing accounting
Director;
standards and applicable laws;
5(3)(b) In the absence of the Chairperson of the Audit Committee, the
3(3)(b) The MD or CEO and CFO shall also certify that there are, to the √
remaining members may elect one of themselves as Chairperson
best of knowledge and belief, no transactions entered into by
for that particular meeting, in that case there shall be no problem
the Company during the year which are fraudulent, illegal or in
of constituting a quorum as required under condition No. 5(4)(b)
violation of the code of conduct for the Company’s Board or its √
and the reason of absence of the regular Chairperson shall be duly
members;
recorded in the Minutes.
3(3)(c) The certification of the MD or CEO and CFO shall be disclosed in √
5(3)(c) Chairperson of the Audit Committee shall remain present in the √
the Annual Report.
Annual General Meeting (AGM):
4. Board of Directors’ Committee
5(4) Meeting of the Audit Committee
4(i) Audit Committee; and √
5(4)(a) The Audit Committee shall conduct at least four meetings in a √
4(ii) Nomination and Remuneration Committee. - Please refer to the Condition No. 6 financial year:
5. Audit Committee 5(4)(b) The Quorum of the meeting of the Audit Committee shall be √
5(1) Responsibility to the Board of Directors constituted in presence of either two members or two third of
the members of the Audit Committee, whichever is higher, where
5(1)(a) The Company shall have an Audit Committee as a Sub-Committee √
presence of an Independent Director is a must.
of the Board;
5(5) Role of Audit Committee
5(1)(b) The Audit Committee shall assist the Board in ensuring that the
Financial Statements reflect true and fair view of the state of 5(5)(a) Oversee the financial reporting process; √
√
affairs of the Company and in ensuring a good monitoring system 5(5)(b) Monitor choice of accounting policies and principles; √
within the business;
5(5)(c) Monitor Internal Audit and Compliance process to ensure that it is √
5(1)(c) The Audit Committee shall be responsible to the Board; the duties √ adequately resourced, including approval of the Internal Audit and
of the Audit Committee shall be clearly set forth in writing. Compliance Plan and review of the Internal Audit and Compliance
5(2) Constitution of the Audit Committee Report;

5(2)(a) The Audit Committee shall be composed of at least 3 (three) √ 5(5)(d) Oversee hiring and performance of external auditors; √
members;

100 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 101
 Governance Reports
Compliance Status Compliance Status
(Put √ in the appropriate (Put √ in the appropriate
Condition Condition
Title column) Remarks Title column) Remarks
No. No.
Not Not
Complied Complied
complied complied
5(5)(e) Hold meeting with the external or statutory auditors for review of √ 5(7) Reporting to the Shareholders and General Investors √
the annual financial statements before submission to the Board for Report on activities carried out by the Audit Committee, including
approval or adoption; any report made to the Board under condition No. 5(6)(a)(ii) above
5(5)(f) Review along with the management, the annual financial √ during the year, shall be signed by the Chairperson of the Audit
statements before submission to the Board for approval; Committee and disclosed in the annual report of the issuer
Company.
5(5)(g) Review along with the management, the quarterly and half yearly √
financial statements before submission to the Board for approval; Unresolved issue (Could not comply due to Bangladesh Bank’s
6. Nomination and Remuneration Committee (NRC)
Guidelines)
5(5)(h) Review the adequacy of internal audit function; √
6(1)(a) The Company shall have a Nomination and Remuneration -
5(5)(i) Review the Management’s Discussion and Analysis before √
Committee (NRC) as a sub- committee of the Board;
disclosing in the Annual Report;
6(1)(b) The NRC shall assist the Board in formulation of the nomination -
5(5)(j) Review statement of all related party transactions submitted by √ criteria or policy for determining qualifications, positive attributes,
the management; experiences and independence of Directors and top level executive
5(5)(k) Review Management Letters or Letter of Internal Control weakness √ as well as a policy for formal process of considering remuneration
issued by statutory auditors; of Directors, top level executive;

5(5)(l) Oversee the determination of audit fees based on scope and √ 6(1)(c) The Terms of Reference (ToR) of the NRC shall be clearly set forth -
magnitude, level of expertise deployed and time required for in writing covering the areas stated at the Condition No. 6(5) (b).
effective audit and evaluate the performance of external auditors; 6(2) Constitution of the NRC
and 6(2)(a) The Committee shall comprise of at least three members including -
5(5)(m) Oversee whether the proceeds raised through Initial Public √ an independent director;
Offering (IPO) or Repeat Public Offering (RPO) or Rights Share Offer 6(2)(b) All members of the Committee shall be non-executive Directors; -
have been utilized as per the purposes stated in relevant offer
6(2)(c) Members of the Committee shall be nominated and appointed by -
document or prospectus approved by the Commission. the Board;
5(6) Reporting of the Audit Committee 6(2)(d) The Board shall have authority to remove and appoint any member -
5(6)(a) Reporting to the Board of Directors of the Committee;
5(6)(a)(i) The Audit Committee shall Report on its activities to the Board. √ 6(2)(e) In case of death, resignation, disqualification, or removal of any -
member of the Committee or in any other cases of vacancies, the
5 (6)(a) (ii) The Audit Committee shall immediately Report to the Board on the √
board shall fill the vacancy within 180 (one hundred eighty) days
following findings, if any:
of occurring such vacancy in the Committee;
5(6)(a)(ii)(a) Report on Conflicts of Interests; - No such instance
6(2)(f) The Chairperson of the Committee may appoint or co-opt any -
5(6)(a)(ii)(b) Suspected or presumed fraud or irregularity or material defect - No such instance external expert and/or member(s) of staff to the Committee as
identified in the Internal Audit and compliance process or in the advisor who shall be non-voting member, if the Chairperson
Financial Statements; feels that advice or suggestion from such external expert and/or
member(s) of staff shall be required or valuable for the Committee;
5(6)(a)(ii)(c) Suspected infringement of Laws, Regulatory compliances - No such instance
including Securities related Laws, Rules and Regulations; and 6(2)(g) The Company secretary shall act as the secretary of the Committee; -

5(6)(a)(ii)(d) Any other matter which the Audit Committee deems necessary - No such instance 6(2)(h) The quorum of the NRC meeting shall not constitute without -
shall be disclosed to the Board immediately; attendance of at least an independent director;

5(6)(b) Reporting to the Authorities - No such instance 6(2)(i) No member of the NRC shall receive, either directly or indirectly, -
any remuneration for any advisory or consultancy role or otherwise,
If the Audit Committee has reported to the Board about anything other than Director’s fees or honorarium from the Company.
which has material impact on the financial condition and results of
6(3) Chairperson of the NRC
operation and has discussed with the Board and the Management
that any rectification is necessary and if the Audit Committee 6(3)(a) The Board shall select 1 (one) member of the NRC to be Chairperson -
of the Committee, who shall be an independent director;
finds that such rectification has been unreasonably ignored, the
Audit Committee shall Report such finding to the Commission, 6(3)(b) In the absence of the Chairperson of the NRC, the remaining -
upon reporting of such matters to the Board for three times or members may elect one of themselves as Chairperson for
completion of a period of 6 (six) months from the date of first that particular meeting, the reason of absence of the regular
Chairperson shall be duly recorded in the minutes;
reporting to the Board, whichever is earlier.

102 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 103
 Governance Reports
Compliance Status Compliance Status
(Put √ in the appropriate (Put √ in the appropriate
Condition Condition
Title column) Remarks Title column) Remarks
No. No.
Not Not
Complied Complied
complied complied
6(3)(c) The Chairperson of the NRC shall attend the annual general - 6(5)(c) The Company shall disclose the nomination and remuneration -
meeting (AGM) to answer the queries of the Shareholders: policy and the evaluation criteria and activities of NRC during the
year at a glance in its annual report.
6(4) Meeting of the NRC
6(4)(a) The NRC shall conduct at least one meeting in a financial year; - 7. External or Statutory Auditors

6(4)(b) The Chairperson of the NRC may convene any emergency meeting - 7 (1) The issuer Company shall not engage its external or statutory
upon request by any member of the NRC; auditors to perform the following services of the Company, namely:

6(4)(c) The quorum of the meeting of the NRC shall be constituted in - 7(1)(i) Appraisal or valuation services or fairness opinions; √
presence of either two members or two third of the members of the 7(1)(ii) Financial Information Systems design and implementation; √
Committee, whichever is higher, where presence of an independent
7(1)(iii) Book-Keeping or other services related to the accounting records √
director is must as required under condition No. 6(2)(h);
or financial statements;
6(4)(d) The proceedings of each meeting of the NRC shall duly be recorded -
7(1)(iv) Broker-Dealer Services; √
in the minutes and such minutes shall be confirmed in the next
meeting of the NRC. 7(1)(v) Actuarial Services; √

6(5) Role of the NRC 7(1)(vi) Internal Audit services or special audit services; √

6(5)(a) NRC shall be independent and responsible or accountable to the - 7(1)(vii) Any service that the Audit Committee determines; √
Board and to the Shareholders 7(1)(viii) Audit or certification services on compliance of corporate √
6(5)(b) NRC shall oversee, among others, the following matters and make governance as required under condition No. 9(1); and
report with recommendation to the Board: 7(1)(ix) Any other service that creates conflict of interest. √
6(5)(b)(i) Formulating the criteria for determining qualifications, positive 7(2) No partner or employees of the external audit firms shall possess √
attributes and independence of a Director and recommend a policy any share of the Company they audit at least during the tenure
to the Board, relating to the remuneration of the directors, top level of their audit assignment of that Company; his or her family
executive, considering following: members also shall not hold any shares in the said Company.
6(5)(b)(i)(a) The level and composition of remuneration is reasonable and - 7(3) Representative of external or statutory auditors shall remain √
sufficient to attract, retain and motivate suitable Directors to run present in the Shareholders’ Meeting (Annual General Meeting
the Company successfully; or Extraordinary General Meeting) to answer the queries of the
6(5)(b)(i)(b) The relationship of remuneration to performance is clear and - Shareholders.
meets appropriate performance benchmarks; 8. Maintaining website by the Company
6(5)(b)(i)(c) Remuneration to Directors, top level executive involves a balance - 8(1) The Company shall have an Official Website linked with the √
between fixed and incentive pay reflecting short and long-term website of the Stock Exchanges.
performance objectives appropriate to the working of the Company
8(2) The Company shall keep the website functional from the date of √
and its goals;
listing.
6(5)(b)(ii) Devising a Policy on Board’s diversity taking into consideration -
8(3) The Company shall make available the detailed disclosures on its √
age, gender, experience, ethnicity, educational background and
website as required under the listing regulations of the concerned
nationality;
stock exchange(s).
6(5)(b)(iii) Identifying persons who are qualified to become Directors and who -
may be appointed in top level executive position in accordance 9. Reporting and Compliance of Corporate Governance
with the criteria laid down, and recommend their appointment and 9(1) The Company shall obtain a Certificate from a practicing √
removal to the Board; Professional Accountant or Secretary (Chartered Accountant or
6(5)(b)(iv) Formulating the criteria for evaluation of performance of - Cost and Management Accountant or Chartered Secretary) other
Independent Directors and the Board; than its statutory auditors or audit firm on yearly basis regarding
compliance of conditions of Corporate Governance Code of the
6(5)(b)(v) Identifying the Company’s needs for employees at different - Commission and shall such certificate shall be disclosed in the
levels and determine their selection, transfer or replacement and Annual Report.
promotion criteria;
9 (2) The Professional who will provide the certificate on compliance √
6(5)(b)(vi) Developing, recommending and reviewing annually the Company’s - of this Corporate Governance Code shall be appointed by the
human resources and training policies; Shareholders in the Annual General Meeting.
9 (3) The Directors of the Company shall state, in accordance with √
the Annexure-C attached, in the Directors’ report whether the
Company has complied with these conditions or not.

104 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 105
 From the Desk of Chief Risk Officer

Governance Reports
It is often said that profit is a reward for risk-taking in business. No businesses will be willing to undertake risks if they get only the normal
return. Therefore the reward for risk-taking must be higher than the actual value of the risk. EBL is no exception here. Minimization of risk
entails correctly identifying the risk at the onset, then finding out the causes of risks emanating from and assessing the risk impact thereof.
Certain inherent risks have to be accepted while counter measures can be put in place to address risks that can be avoided. Major risks for
EBL include credit, operational, market, reputational and liquidity risk. Since EBL is exposed to a variety of risks, we have well-constructed
risk management mechanisms, and we meticulously follow government regulations to achieve our objectives.

EBL rigorously follows a robust risk management framework. We follow the three lines of defense model. In our model, management control
is the first line of defense in risk management, the various risk control and compliance oversight functions established by management are
the second line of defense and independent assurance is the third one of defense. Each of these three “lines” plays a distinct role within the
organization’s wider governance framework. Bank’s risk management framework is applied on an enterprise-wide basis and consists of
three key elements- Risk governance, Risk appetite, and Risk management tools. All these tools are vital for our risk management framework.

Additionally, we have several committees consisting of members from our Management and honorable Board of Directors. Risk Management
Committee (RMC) of Board is there to ensure that the Bank-wide risks are managed within the risk strategy and appetite established by the
Board of Directors. Executive Risk Management Committee (ERMC) is there to monitor integrated risk management across the Bank.

EBL also follows a risk culture that emphasizes on the accountability, governance and transparency. Subsequently, Risk management tools
such as policies, guidelines, measurement, monitoring and reporting are there to mitigate the risks. We also look after the risks through
our measurement methods such as Value at Risk (VaR), Gap analysis, Duration analysis etc. We measure the risks and take necessary steps
accordingly. These tools help EBL mitigate risk and boost its profit.

As I said earlier, Risk management can help profitability in a number of calculated ways. Risk management is proactively helping EBL
identify the possible events that could impact our business. It also increases the likelihood of successfully achieving our business objectives.
So our ultimate objective is to be a successful brand with a sustainable growth while minimizing risk.

Mahmoodun Nabi Chowdhury

DMD & Chief Risk Officer

106 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 107
Risk Management Report Bank’s risk management framework is applied on an enterprise-wide basis and consists of three key elements:

Governance Reports
• Risk governance,

Risk management in banking is treated as a mechanism to identify material risks and execution of a plan to deal with potential losses. • Risk appetite, and
Here securing the bank’s asset and reputation is indispensable for ensuring financial and organizational sustainability. Hence, we practice • Risk management tools.
a robust, methodical and transparent risk management culture where all the employees of the bank share this responsibility and value it.

Key initiatives in 2020 Risk governance

• We have taken several initiatives to support our clients. Extension good. It supports business during COVID-19 pandemic and Board of Directors
of maturity of loans, extension of credit limits, extension of EBL achieved target of implementing stimulus package for the
documentation deferral, payment pause of installment are such CMSMEs allocated by the central bank. Risk Management Committee (RMC) of the Board
initiatives among others. All these steps were taken for the survival
of the clients’ business and hence it has reduced credit risk. • Initiated process of developing automated resources for
calculating different risk indicators. Managing Director & CEO
• Ensured fast tracking of approval process for CMSMEs with
consciously taken credit policy exceptions for the greater • Identifying, assessing and controlling the environmental risk.

Executive Risk Management Committee

Risk management framework:

Chief Risk Officer (CRO)

Risk Governance Head of Credit Risk Management Head of Risk Management Division

Risk Appetite
Risk Capacity Collects
Risk Appetite Statement information
from
Key Risk Appetite Measures

Risk Management Tools

Head of Monitoring (ICCD)
Policy & Limits Guidelines, Processes & Standards
Measuring,Monitoring, Reporting
Head of Compliance (ICCD)
Stress Testing

Risks
Credit, Market, Liquidity, Operational, Reputational, Environmental, Strategic Risk Management Committees

Strong Risk Culture Committees Key objectives Represented by

Risk Management Committee To ensure that the Bank wide risks are managed within Anis Ahmed, Director and Chairman of the committee
Eastern Bank has an effective risk management framework. control and compliance oversight functions established by EBL (RMC) of the Board the risk strategy and appetite established by the Board up to August, 2020 and then succeeded by Mir Nasir
This framework is designed to protect capital base, reputation, management are the second line of defense and independent of Directors. Hossain, Director.
revenue and earnings of the bank without hindering growth. assurance is the third line of defense. Each of these three “lines” Gazi Md. Shakhawat Hossain, Director, Mufakkharul
In the three lines of defense model of EBL, management plays a distinct role within Eastern Bank’s wider governance Islam Khasru, Director and Zara Namreen, Director are
control is the first line of defense in risk management, the risk framework. members of the committee.
Executive Risk Management To monitor activities of the risk management division Chaired by DMD & Chief Risk Officer.
Committee (ERMC) responsible for integrated risk management across the
Primary responsibility for managing Risk management and other control Bank. Planning & strategy, Risk Management, Treasury,
organizational risks through designing functions (2nd line of defense) Business Heads, Operations, CRM, HR, IT, Finance,
The principal function of the third line is
and implementing appropriate Internal Control & Compliance are members.
Second line monitors the implementation to provide risk assurance, independent
mitigating controls rests with operational ICT Steering Committee Provide guidance related to risks, funding or sourcing Risk Management, HR, Credit Administration, Operations,
of effective risk management practices monitoring and oversight function.
management who owns and manages to achieve ICT strategic goals, monitor and evaluate ICT IT, Finance and Internal Control & Compliance are
by management throughout the projects implementation and achievements against ICT members.
risks.
organization, assisting risk owners strategic plan.
in defining target risk exposure and Asset Liability Committee To optimize Bank’s financial goals retaining liquidity Chaired by Managing Director & CEO.
Business line(1st line of defense) providing adequate risk reporting. Internal audit (3rd line of defense)
(ALCO) risk and interest rate risk of the Bank at desired level. Deputy Managing Director, Business Heads, Risk
Management, Treasury, Finance are members.

108 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 109
 Governance Reports
Committees Key objectives Represented by EBL’s position
Risk appetite criteria Appetite
Supervisory Review Process Implementation of Pillar-II of BASEL accord as Chaired by Managing Director & CEO. 2020 2019
(SRP) Team per requirement of Bangladesh Bank. Regulatory DMD & CRO, Operations, IT, Treasury, Finance, Risk
Credit risk
requirements to be the minimum standards to establish. Management are members.
Credit Risk Management Review of Bank’s credit risk appetite, tolerance Chaired by DMD & Chief Risk Officer. Non-Performing Loans (NPL) Less than 3.75% 2.72% 3.35%
Committee and strategy considering current and prospective Business Heads, Risk Management, Finance and Credit
macroeconomic and financial environment. Risk Management are members. Aggregate on and off balance sheet exposure on customers internally rated
More than 50% 85.47% 89.31%
Sustainable Finance Formulate, review and update all policies and guidelines Chaired by Deputy Managing Director - Planning & strategy. (CRGM) between 1-5
Committee relating to sustainable finance.  Business Heads, Risk Management, Finance and Credit Exposure to obligor/s exceeding single borrower exposure limit Less than 15% 0.00% 0.00%
Risk Management are members.
Large loan concentration Less than 56% 32.10% 45.56%
Role of Board
Loan concentration on top 20 borrowers Less than 25% 25.83% 27.45%
Role of the Board of EBL is immensely significant in establishing • Implementation of effective risk governance culture.
the overall strategies and policies relating to the management • Periodic review and approval of Bank’s risk management policy. Off balance sheet exposure as percentage of total assets Less than 45% 30.90% 29.83%
of all risks associated with the organization. Risk Management • Implementation of risk management policy. Percentage of portfolio with credit rating More than 65% 78.42% 83.55%
Committee (RMC) of the Board is the ultimate policy making
• Bank’s environmental & social risk management.
platform for Bank’s risk management. Market risk
Risk Management Committee (RMC) of the Board supervises:
Impact on net interest income due to change in interest rate Less than 10% 2.77% 6.09%
• Identification and assessment of Bank’s risks and guide
management to formulate the strategies. Value at Risk (VAR) Less than Tk. 10 million 0.2 0.2

Concentration on top 10 depositors Less than 25% 7.15% 9.32%

 Risk culture of EBL
Capital Market exposure Less than 25% 22.03% 22.63%
The Bank’s risk governance structure, risk appetite, and risk management tools are influenced by risk culture of the Bank. The risk culture
is built upon: Liquidity risk

Tone from the top: Clear and consistent communication from leaders Compensation: Programs are structured to discourage behavior Advance to Deposit Ratio (AD)-Bank Less than 87% 78.82% 77.90%
on risk behavior expectations and the importance of EBL’s values. not aligned with the Bank’s values or EBL’s GAP Policy, Code of
Conduct and ensure that such behaviors will not be rewarded. Liquidity Coverage Ratio (LCR)-DBO 100% or more 210.90% 338.22%
Accountability: All EBL employees in every business function are
held accountable for risk ownership and their actions in accordance Reporting: Reputational and operational risk dashboards and other Net Stable Funding Ratio (NSFR)-DBO More than 100% 105.49% 114.45%
with the three lines of defense model. key metrics are monitored and reported. The Bank also seeks out Maximum Cumulative Outflow (MCO)-DBO Less than 16.5% 13.51% 15.27%
employee feedback through a variety of surveys.
Operational risk

Internal fraud 0.20% of last 3 years’ avg. operating profit 0.00% 1.44%

External fraud 0.80% of last 3 years’ avg. operating profit 0.00% 0.00%
Accountability Tone from the top Training Compensation Centralized Decsion- Reporting
making Employment practice and workplace safety 0.10% of last 3 years’ avg. operating profit 0.00% 0.00%

Risk culture of EBL Clients, products, and business practice 0.10% of last 3 years’ avg. operating profit 0.00% 0.00%

Damage to physical assets 0.20% of last 3 years’ avg. operating profit 0.00% 0.00%
Training: EBL continually reinforces risk culture by providing Centralized Decision-making: The membership of senior and
Business disruption and system failure 0.15% of last 3 years’ avg. operating profit 0.00% 0.00%
effective and informative mandatory and non-mandatory executive management committees responsible for the review,
training modules for all employees, as well as presentations approval and monitoring of transactions and the related risk Execution, delivery and process management 0.45% of last 3 years’ avg. operating profit 0.00% 0.00%
and other training media on a variety of risk management exposures (whether global or local) include business line heads
topics. and senior risk officers. Overall operational risk 2% of last 3 years’ avg. operating profit 0.00% 0.00%

Capital management
Risk appetite
Capital to risk weighted assets (RWA) ratio (CRAR) More than 12.50% 15.23% 14.74%
EBL’s risk appetite framework consists of a risk capacity, risk appetite Risk appetite

statement and key risk appetite measures. Application of the risk Leverage ratio More than 3% 5.97% 5.28%
appetite statement and monitoring of the key risk appetite measures
help to ensure the Bank stay within appropriate risk boundaries. Tier 1 Capital ratio (including Capital Conservation Buffer) More than 8.5% 10.78% 9.99%
Bank’s credit risk appetite further defines the Bank’s risk appetite
with respect to lending, counterparty credit risk, and other credit Risk capacity Risk appetite Key risk Stress test (Impact on capital under combined minor shock) More than 10.0% 11.88% 11.91%
statement appetite measures
risks (such as investments).

110 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 111
Risk management tools Stress testing report is prepared on quarterly basis and presented Control of foreign exchange activities (b) Procedural controls to ensure that:

Governance Reports
to the Risk Management Committee of the Board. i. Transactions are fully recorded in the records and
(a) Organizational controls to ensure that there exists
Guidelines, accounts of the Bank;
Stress Measurement, monitoring and reporting a clear and effective segregation of duties among those
processes &
testing persons who initiate foreign exchange transactions and those ii. Transactions are promptly and correctly settled; and
standards
Risk measurement
persons who are responsible for operational functions. iii. Unauthorized dealing is promptly identified and
The Bank uses models for different purposes including estimating reported to management;
the value of transactions, measuring risk exposures, determining
Measurement, Analysis of stress testing results
Policies & credit risk ratings and parameters, and calculating economic and
Risk management tools monitoring
limits regulatory capital. The use of quantitative risk methodologies
and reporting 2020 2019
and models is balanced by a strong governance framework and Particulars
Minor Moderate Major Minor Moderate Major
includes the application of sound and experienced judgment. Shock applied by the bank 1% 2% 3% 1% 2% 3%
Policies and limits
Regular monitoring Interest rate (0.65) (1.30) (1.95) (0.09) (0.17) (0.26)
Policies CRAR after interest rate shock 14.58% 13.92% 13.27% 14.65% 14.57% 14.48%
The Bank ensures that business activities are within approved Shock applied by the bank 5% 10% 15% 5% 10% 15%
Industry best practices and regulatory requirements are also limits or guidelines, and are aligned with the Bank’s strategies Currency depreciation (0.01) (0.02) (0.03) (0.01) (0.01) (0.02)
factored into the policies. Policies are guided by the Bank’s risk and risk appetite. Breaches, if any, of these limits or guidelines are CRAR after exchange rate shock 15.22% 15.21% 15.20% 14.73% 14.72% 14.72%
appetite, and set the limits and controls within which the Bank and reported to senior management, risk committees, and/or the Board Shock applied by the bank 10% 20% 40% 10% 20% 40%
its subsidiaries can operate. depending on the limit or guideline. Equity shock (0.49) (0.99) (2.01) (0.27) (0.54) (1.09)
• Key risk policies are approved by the Board of Directors. CRAR after equity shock 14.73% 14.23% 13.22% 14.47% 14.20% 13.65%
Risk reports
• Management level risk policies/ instructions manuals Risk mitigation approaches
Aggregate measures of risk across products and businesses are
associated with processes such as credit instruction manual
used in compliance with policies, limits, and guidelines. They also Principal risk types at a glance
and new products initiations are approved by senior executive
provide a clear statement of the amount, types, and sensitivity of
management and/or key risk committees.
the various risks in the Bank’s portfolio. Senior management and Risk types Governing documentation Application to risk appetite limits/ tolerances
Limits
the Board use this information to understand the Bank’s risk profile Credit risk Credit policy manual, credit instruction manual, • Exposure to a single customer or group of related parties.
Control risk-taking activities within the tolerances established by and the performance of the portfolios. risk appetite • Industry concentrations (exposure and risk adjusted
the Board and senior executive management. Limits also establish concentration limits).
accountability for key tasks in the risk-taking process and establish
Risk measurement methods
Market risk Asset liability management policy, • Various VaR limits, stress test results, equity and debt investment
the level or conditions under which transactions may be approved Value at Risk (VaR)
Foreign exchange risk management policy and exposures.
or executed.
VaR is a statistical method of measuring potential loss due to market Treasury mid-office operating guideline. • Structural interest rate and foreign exchange exposure.
Guidelines, processes and standards risk based upon a common confidence interval and time horizon. The • Duration analysis.
Bank calculates VaR daily using a 99% confidence level, and a one- Liquidity and funding Asset liability management policy, Fund transfer • Hold appropriate levels of unencumbered high quality liquid
Guidelines
day holding period for its trading portfolios. This means that once in risk pricing policy. assets that can be readily sold or pledged;
Guidelines ensure the Bank has the appropriate knowledge of every 100 days, the trading positions are expected to lose more than • Limits to control the maximum net cash outflow over specified
clients, products, and markets and that it fully understands the the VaR estimate. The Bank calculates general market risk VaR using short-term horizon; and
risks associated with the business it underwrites. Guidelines may historical simulation based on 6 months market data. • Diversification of funding by source, type of depositor, instrument,
change from time to time, due to market or other circumstances. term.
BDT in million
Risk taking outside of guidelines usually requires approval of the
Operational risk Internal control & compliance policy, fraud & theft • Systematic identification, measurement, mitigation and
Bank’s Managing Director & CEO. Particulars 2020 2019 2018 risk prevention & management policy, Information monitoring of operational risk,
Approved VaR limit 10 10 10
Processes Technology (IT) security policy, outsourcing policy, • Minimization of residual operational risk; and
Actual VaR 0.2 0.2 0.8
AML policy, People management policy • Expressed quantitatively by an aggregate loss limit.
The activities are associated with identifying, evaluating,
Foreign exchange VaR remains well within the approved VaR limit. Reputational risk Customer service & complain management policy • Low tolerance for reputational, legal, or taxation risk arising from
documenting, reporting and controlling risk.
business activities, initiatives, products, services, transactions
Standards Gap analysis
or processes, or from a lack of suitability of products for clients.
Standards are developed on an enterprise-wide basis, and Through Gap analysis, we assess the interest rate sensitivity of re-
documented in a series of policies, manuals and handbooks under pricing mismatches in the Bank’s non-trading operations. Interest
Environmental & Credit policy manual, Credit instruction manual • Ensuring that projects are developed in a socially responsible
the purview of Risk Management Division. rate sensitive assets, liabilities and off-balance sheet instruments
social risk manner
of the Bank are assigned to defined time periods based on expected
Stress testing Strategic risk Risk appetite, annual budget, strategic planning • It links the Bank’s risk appetite framework with the enterprise
re-pricing dates.
strategy, business line strategies and corporate function
Stress testing programs at enterprise level allow the Bank to
Duration analysis strategies;
estimate the potential impact on income, capital and liquidity of
significant changes in market conditions, credit environment, With that analysis, we measure the relative sensitivity of the value Credit risk
liquidity demands, or other risk factors. The development, approval of these instruments to changing interest rates (the average term to
and on-going review of the Bank’s stress testing programs are re-pricing), and it reflects how changes in interest rates will affect Credit risk arises from the Bank’s direct lending operations, and in its funding, investment and trading activities where counterparties have repayment
subject to Bangladesh Bank’s updated guidelines and instructions. the Bank’s economic value, that is, the present value of equity. or other obligations to the Bank. Credit risk includes settlement risk, suitability risk and wrong way risk.

112 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 113
 Concentration among top borrowers:

Governance Reports
Non-performing Loan (NPL)
Credit management process
Bank’s fund based exposure to top 20 customers is about 25.83 3.50%
Business unit 2020
percent of total loans and advances. Average corporate loan size 3.00%

is about BDT 32 crore (± 350 customers), while average funded 2.50% 2019
Credit application 2.00%
exposure on top 20 customers is around BDT 318 crore.
Declined 1.50%
Top 20 Customer Exposure 2020 1.00%
Credit Risk Managers 0.50%
Rest of the Customer 0.00%

Head of Credit Risk Management Gross NPL Net NPL

Funded Exposure to
74.17% Top 20 Borrower
Composition of RWA of loan portfolio:
Within lending authority? Credit
Yes
Administration (CAD) Capital to Risk Weighted Assets Ratio increased year on year by
49 basis points. This slight increase is driven by retention of profit
No 25.83%
Approved in 2020 due to BB circular regarding dividend distribution among
shareholders. 67.20 percent of the portfolio belongs to 20 percent to
Recommendation of CRO 80 percent range which was 73.98 percent a year ago.
Top 20 Customer Exposure 2019
Composition of RWA of loan portfolio
MD & CEO Rest of the Customer 150%
Special Asset Management to 125%
2020
recover classified loans Funded Exposure to 120% 2019
Board of Directors 72.55% Top 20 Borrower 100%
80%
75%
60%
50%
Credit risk management Portfolio Concentration USD in million 27.45%
40%
20%
Effective management of credit risk requires the establishment of 0.00% 10.00% 20.00% 30.00% 40.00% 50.00%
an appropriate credit risk culture. Board of Directors, either directly Agriculture, Fishing, NPL
and Forestry
or through the Risk Management Committee (of the Board), reviews Particulars 2020 2019 2018
Both gross NPL and net NPL (excluding SMA) shows a fall in 2020
and approves the Bank’s credit risk appetite annually and credit Industry Percentage of rated loans to 78.42% 83.55% 86.14%
and provide a positive picture of the loan portfolio in comparison to
policy manual triennially. total eligible loans for rating
Trade & Commerce overall industry position.
The objectives of the credit risk appetite are to ensure that: Transport
Loan portfolio under stressed scenario
Construction
– Target markets and product offerings are well defined at both
the enterprise-wide and business line levels; 2020 2019
Consumer financing Particulars
Minor Moderate Major Minor Moderate Major
– Risk parameters for new underwritings and for the portfolios Loans to financial
institutions
Shock applied by the bank 3% 9% 15% 3% 9% 15%
as a whole are clearly specified.
Miscellaneous CRAR due to Increase in NPL 13.28% 9.01% 3.78% 11.07% 7.09% 4.49%
Credit risk policy articulates the credit risk management Shock applied by the bank 10% 20% 40% 10% 20% 40%
framework, including:
CRAR due to Decrease in value of collateral taken against loans and advances 15.14% 15.05% 14.88% 14.60% 14.47% 14.21%
– Key credit risk management principles; Industry Concentration Shock applied by the bank 5% 10% 15% 5% 10% 15%
CRAR due to Negative Shifting of NPL 15.07% 13.91% 13.72% 14.53% 12.99% 12.70%
– Delegation of authority;
4,000.00
Shock applied by the bank 3% 9% 15% 3% 9% 15%
– Counterparty risk management for trading and investment
3,500.00 CRAR due to If some sectors become classified 14.63% 13.43% 12.22% 14.10% 12.80% 11.48%
activities;
3,000.00 Shock applied by the bank 3 7 10 3 7 10
– Aggregate limits, beyond which credit applications must be 2,500.00 CRAR due to If some large borrowers become classified 10.58% 6.10% 3.96% 11.07% 7.09% 4.49%
escalated to the Board for approval; and 2,000.00
Combined credit risk result (after shock)
1,500.00
– Single borrower/aggregation exposures, beyond which a CRAR after combined credit shock 13.03% 7.51% 1.92% 11.91% 9.53% (1.64%)
1,000.00
summary of exposures must be reported to the Board.
500.00
0.00
Credit risk mitigation – collateral/security
Industry and sector concentration scenario of the loan portfolio:
RMG

Textile

Food and allied

industries

Pharmaceutical
industries

Chemical,
fertilizer, etc.
Cement and
ceramic
industries
Ship building
industries
Ship breaking
industries

Power and gas

Other manufacturing or
extractive industries
Service industries
(the total here would be identical
to the total from line B3)

Others

Collateral values are accurately identified at the outset and Bank procedures require verification including certification by Bank
Industrial sector concentration is moderate and sectors remained throughout the tenure of a transaction by using standard evaluation officials during initial, annual, and periodic reviews that collateral
within the set internal limit as approved by the board of directors. methodologies. The frequency of collateral valuations is also values/ margins/etc. have been assessed and, where necessary,
increased when early warning signals of a borrower’s deteriorating steps have been taken to mitigate any decreased collateral values.
As on 31-12-18 As on 31-12-19 As on 31-12-20 financial condition are identified.

114 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 115
Liquidity risk Market risk governance equity risks. These portfolios are controlled by a Board-approved

Governance Reports
Liquidity Coverage Ratio (LCR)
policy and limits.
Liquidity risk is the potential for loss to a bank arising from either 350.00% Treasury Mid Office of RMD and the Bank’s Treasury Department
its inability to meet its obligations as they fall due or to fund growth 300.00% are responsible for risk identification, measurement, monitoring, Other risks
of assets without incurring unacceptable cost or losses. 250.00% control, and management reporting in relation to market risk.
Overall risk parameters and exposures of the Bank are monitored Operational risk
200.00%
Liquidity risk measurement by RMD and reports to Executive Risk Management Committee
150.00% Operational risk includes legal and regulatory risk, business process
(ERMC).
An important aspect of measuring liquidity is making assumptions 100.00% and change risk, fiduciary or disclosure breaches, technology
about future funding needs. One important factor to consider is the 50.00%
Treasury mid office guideline contains core principles, functions, failure, financial crime and environmental risk. Operational risks
critical role a bank’s reputation plays in its ability to access funds 0.00% and responsibilities of mid office. Mid office monitors and analyzes not only result in financial loss, but also regulatory sanctions

Jan/20

Feb/20

Mar/20

Apr/20

May/20

Jun/20

Jul/20

Aug/20

Sep/20

Oct/20

Nov/20

Dec/20
readily and at reasonable terms. treasury deals from the risk on counterpart, individual dealer’s, and damage to the Bank’s reputation. In this regard, EBL is very
dealing currency, tenor, time of execution and appropriateness successful at mitigating operational risk safeguarding client assets
We have identified several key liquidity risk indicators, which are
point of view. Findings from the analysis escalated to appropriate and preserving shareholder value.
monitored on a regular basis to ensure healthy liquidity position.
Liquidity Coverage ratio is calculated as per format provided by authority for notification and approval of exceptions (if any) on a
Risk management division introduced comprehensive risk register
Deposit Mix Bangladesh Bank. Average LCR for 2020 is 229.99 percent. daily, weekly and monthly interval.
for operational risk compiling the parameters as in regulatory
Market risk factors frameworks. Risk Management team collect the status from the
5% 7% Net Stable Funding Ratio (NSFR) source departments to compile the risk performance and escalate
5% Current Deposit
Interest rate risk
the findings as appropriate.
15% 109.00%
Interest rate risk of the Bank arises from adverse and unanticipated
Short Term Deposit 108.50%
108.00% movements in future interest rates that could impact core business Reputational risk
Savings Deposit 107.50%
activities; granting of credit facilities, accepting deposits and
107.00% Reputational risk is the risk that negative publicity regarding
Fixed Deposit 106.50% issuing debt instruments, leading to fluctuations in earnings.
22% 106.00%
organization’s conduct, business practices or associations, whether
Scheme Deposit
105.50% The techniques for measuring Bank's interest rate risk exposure true or not, will adversely affect its revenues, operations or customer
Other deposit 105.00%
begin with a maturity/re-pricing schedule that distributes interest base, or require costly litigation or other defensive measures.
104.50%
46% However, EBL takes every step to safeguard its core values/
104.00% sensitive assets, liabilities, and off-balance sheet positions into
103.50% purpose. Currently External Credit Rating of EBL, loss arising from
a certain number of predefined time bands according to their
Mar-20

Jun-20

Sep-20

Dec-20
maturity (if fixed rate) or time remaining to their next re-pricing internal and/or external frauds, non-payment or delayed payment
Although entire banking industry faced many challenges in 2020 (if floating rate). of accepted bills and quality of customer service are considered to
like decrease in deposit rate, global pandemic situation leading to quantify reputational risk of the Bank.
pay cut & job cut, EBL managed to marginally increase total deposit. Net stable funding ratio is calculated as per format provided by Exchange rate risk
Bangladesh Bank. Average NSFR for 2020 is 106.28 percent. Environmental risk
Liquid assets to short term liabilities Exchange rate risk is the current or prospective risk to earnings and
Liquidity risk management and mitigation capital arising from adverse movements in currency exchange rates. Environmental risk refers to the possibility that environmental
To calculate liquid asset to short term deposit cash in hand, balance Banks foreign exchange risk may arise from following activities: concerns might affect financial performance of the Bank. How
with Bangladesh Bank, other banks & financial institutions, money In order to develop comprehensive liquidity risk management EBL addresses this issue is more elaborately highlighted in
on call and investment (Government) are considered as liquid asset. framework, we have Contingency Funding Plan (CFP), which is a set i. Holding foreign currency position in the banking book in the sustainability report.
To calculate short term liabilities those which will be maturing of policies and procedures that serve as a blueprint for the Bank to form of loans in foreign currency.
within 3 months are considered. meet its funding needs in a timely manner and at a reasonable cost. ii. Engaging in derivative transactions that are denominated in Strategic risk
foreign currency for trading or hedging.
CFP is an extension of ongoing liquidity management that Strategic risk is the risk that the Bank’s business strategies are
Liquid assets to short term liabilities iii. Settlement risk due to default of counter parties. ineffective, being poorly executed, or insufficiently resilient to
formalizes the objectives of liquidity management by ensuring:
120.00% iv. Time-zone risk, which arises out of time lags in settlement of changes in the business environment. EBL believes that prudent
a A reasonable amount of liquid assets is maintained; one currency in one center and settlement of another currency and proactive approach in managing strategic risks would deliver
100.00%
in another center located at different time zone. results and outperform its peers in many aspects including
80.00% b Measurement and projection of funding requirements during profitability, customer loyalty and market share. Currently CAMELS
various scenarios; and Bank’s foreign exchange risk management policies and procedure include:
60.00% rating of EBL, cost to income ratio, NPL ratio, recovery from classified
i. Accounting and management information systems to measure loan in a year, written-off Loan for the year, interest waived during
40.00% c) Management of access to funding sources.
and monitor foreign exchange positions, foreign exchange risk the year and comparison of base rate against lending rate are
20.00%
Market risk and foreign exchange gains or losses; considered as measurement tool for strategic risk.
0.00% ii. Governing the management of foreign currency activities; and
Money laundering & terrorist financing risk
Jan/20

Feb/20

Mar/20

Apr/20

May/20

Jun/20

Jul/20

Aug/20

Sep/20

Oct/20

Nov/20

Dec/20

Market risk is the risk of loss from changes in market prices and iii. Independent inspections or audits.
rates (including interest rates, credit spreads, equity prices, foreign
Investment portfolio risk Financial institutions all over the world are facing blazing heat
exchange rates and commodity prices), the correlations between
of Money Laundering and Terrorist Financing. Perpetrators are
them, and their levels of volatility.
Bank holds investment portfolios to meet liquidity and statutory adopting modern techniques to use financial institutions as
reserve requirements and for investment purpose. These portfolios conduit of money laundering and terrorist financing. The intention
expose the Bank to interest rate, foreign currency, credit spread and of wrongdoers to conceal the true source of fund or purpose can

116 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 117
expose bank to great risk. Failure to safeguard our bank from • To address the risk factor and enhance the performance of
Disclosures on Risk Based Capital (Basel III)

Governance Reports
such perpetrators can result in violation of Money Laundering the Card Management System, relevant hardware has been
Prevention Act (MLPA) 2012 & Anti-Terrorism Act (ATA) 2009, and upgraded.
BFIU guidelines which can lead to financial penalties, reputational • Vulnerability Assessment and remediation have been done for Background A. Scope of application
damage as far as license cancellation. Upgraded Call Center, Skybanking web, E-KYC etc.
Basel III reforms are the response of Basel Committee on Banking Qualitative disclosures
With a view to safeguarding EBL form money laundering and • Security patches and software versions of all applications
Supervision (BCBS) to improve the banking sector’s ability to absorb
terrorist financing risk, senior management has set the tone at have been updated to mitigate the risk of vulnerabilities in OS (a)The name of the top corporate entity in the group to which this
shocks arising from financial and economic stress, whatever the
the top. AML/CFT compliance program has been laid throughout and Software level. guideline applies:
source, thus reducing the risk of spillover from the financial sector
the bank where multiple control measures has been deployed. • To prevent the risk of misuse of user access privileges in
to the real economy. Basel III mainly addresses the following areas:
Central Compliance Committee (Triple C) has been formed with business-critical applications, employee user access were The framework applies to Eastern Bank Limited (EBL) on
crucial department heads who are responsible to set and review reviewed at periodic interval. ‘Consolidated Basis’ as there were four subsidiaries of the Bank as
• raise the quality and level of capital to ensure banks are better
AML/CFT strategies and implementation. In this regard, last • Design, plan, schedule and coordinate IT Disaster Recovery on the reporting date i.e. 31 December 2020. However, ‘Solo Basis’
able to absorb losses on both a going concern and a gone
year 4 Triple C meetings were conducted. Branch Anti Money Plan (DRP) tests (primarily focused on testing the correct information has been presented beside those of ‘Consolidated
concern basis
Laundering Compliance Officer (BAMLCO) and Department Anti operation of the DR technologies) and exercise (primarily Basis’ to facilitate comparison.
Money Laundering Compliance Officer (DAMLCO) nomination and focused on training people in IT about DR-related procedures • increase the risk coverage of the capital framework
(b) An outline of differences in the basis of consolidation for accounting
responsibilities were reviewed and updated as well. To corroborate and activities), evaluating their effectiveness and promoting
• introduce leverage ratio to serve as a backstop to the risk- and regulatory purposes, with a brief description of the entities within
monitoring and compliance culture, EBL has implemented any improvement activities that are considered necessary to
based capital measure the group (i) that are fully consolidated; that are given a deduction
an automated sanction screening and transaction monitoring meet the business objectives.
treatment; and (ii) that are neither consolidated nor deducted (e.g.
software. In addition to conducting online & offline training • IT has Business Continuity Management (BCM) to support • raise the standards for the supervisory review process where the investment is risk-weighted).
programs, EBL has also introduced an e-Certification program on and handle any human-made or natural incident/disaster. (Pillar 2) and public disclosures (Pillar 3) etc.
AML/CFT to increase awareness.
Moreover, scheduled backup minimizes the risk of data loss Entities within the group: The Bank has four fully owned
based on the criticality of the system. All incidents and failure In compliance with the ‘Revised Guidelines on Risk Based Capital subsidiaries as on the reporting date. These are EBL Securities
Information and communication technology (ICT) risk
logs are investigated and brought to resolution. Adequacy (RBCA)’ issued by Bangladesh Bank in December 2014, Limited, EBL Investments Limited, EBL Finance (HK) Limited and
To manage ICT risk is to provide round-the-clock commitment • Monitor access to all systems and maintain access control in banks in Bangladesh have formally entered into Basel III regime EBL Asset Management Limited. All subsidiaries of the Bank have
for EBL’s information system security, precisely on integrity, end-user devices, network devices and servers. from 1 January 2015. The new capital and liquidity standards have been incorporated in Bangladesh except for EBL Finance (HK)
confidentiality and availability of information by making sure • Development and implementation of appropriate and effective greater business implications for banks. Limited which is incorporated in Hong Kong.
suitable security controls are in place. EBL has taken adequate controls to mitigate identified threats and risks.
information security initiatives to ensure the security of its Eastern Bank Limited (EBL) has also adopted Basel III framework EBL Securities Ltd.: EBL Securities Limited (EBLSL), a securities
• Review of system logs for the Bank’s infrastructure to identify as part of its capital management strategy in line with the revised brokerage firm acquired in two phases, is a public limited company
processed information. The Bank is committed to protecting
trends and investigate abnormalities and anomalies have having TRECs (Trading Right Entitlement Certificate) and ordinary
customer information and assets from any type of unauthorized guideline. These Market discipline disclosures under Basel III
been carried out. shares of both the bourses i.e., Dhaka Stock Exchange (DSE) Limited
use and/or fraud. Following tasks are carried out to manage ICT are made following the same guidelines in order to complement
risk of the Bank: • Vulnerability assessment, Penetration testing and IT audit the minimum capital requirements and the supervisory review and Chittagong Stock Exchange (CSE) Limited. The principal
have been carried out and findings are sufficiently addressed. process. Establishing a transparent and disciplined financial activities of this subsidiary are buying, selling and settling of
• This year EBL successfully obtained ISO 27001:2013 ISMS for securities on behalf of investors and its own portfolio. Registered
Risk Reporting market through providing accurate and timely information related
consecutive 2nd year and PCI-DSS certification for consecutive office of EBLSL is located at Jiban Bima Bhaban, 10 Dilkusha CA,
to liquidity, solvency, performance and risk profile of a bank is
5th year being the first bank ever to achieve this. These Dhaka - 1000, Bangladesh.
Risk Management Report is prepared on monthly interval to record another important objective of this disclosure.
certifications have been awarded as a token of recognition
81 risks related issues of credit, market and operational risk across
of EBL’s effort to continuously improve security measures to EBL Investments Ltd.: EBL Investments Limited (EBLIL) was
the Bank during the month and submitted towards Bangladesh Consistency and validation
protect information asset of EBL. incorporated on 30 December 2009. EBLIL obtained license
Bank for all months other than June and December within 30
• All the IT representatives have received IT Security Awareness The quantitative disclosures are made on the basis of from Bangladesh Securities & Exchange Commission (BSEC) on
days following the month end. In addition, Comprehensive Risk
Training in the year 2020 to assure employees are aware of the consolidated audited financial statements of EBL and its January 2013 and started full-fledged operations of merchant
Management Report (CRMR) is submitted to Bangladesh Bank by
latest cybersecurity risks. subsidiaries as at and for the year ended 31 December 2020. banking, portfolio management, underwriting, etc. from June 2013.
July 31 (based on June 30 data) and January 31 (based on December
Those are prepared under relevant International Accounting Registered office of EBLIL is located at Jiban Bima Bhaban, 10
• Checklist for security pre-assessment is used by IT to ensure 31 data). Executive Risk Management Committee (ERMC) reviews
project go live in with lesser cybersecurity risks. and Financial Reporting Standards and related circulars/ Dilkusha CA, Dhaka - 1000, Bangladesh.
these papers on monthly interval; recommends action plans to
• Core Banking System Upgrade Project (Project Rupantor) has the concerned department for mitigating identified risk areas and instructions issued by Bangladesh Bank from time to time. The
EBL Finance (HK) Ltd.: EBL Finance (HK) Limited, the first foreign
been kicked off which will drastically improve the risk factors follows-up the implementation of previous recommendations. 12 assets, liabilities, revenues and expenses of the subsidiaries are
subsidiary of EBL, was incorporated on 28 November 2011 with
regarding the core banking system. ERMC meetings were held during 2020. combined with those of the parent company (EBL), eliminating
Hong Kong (HK) authority. This subsidiary started its full-fledged
intercompany transactions. Assets of the subsidiaries are risk
business operations (i.e. offshore trade finance, advising, documents
weighted and equities of subsidiaries are crossed out with the
Way forward collection etc.) in Hong Kong during 2013 after obtaining all the
investment of EBL while consolidating. So, information presented
required licenses from Bangladesh and HK authority. Registered
in the ‘Quantitative Disclosures’ section can easily be verified office of EBL Finance (HK) Limited is Unit 1201, 12th Floor, Albion
• Review the performance of recovering the non-performing assets and update the status to management and RMC of the Board.
and validated with corresponding information presented in the Plaza, 2-6 Granville Road, Tsimshatsui, Hong Kong.
• Ensure monitoring of risk performance aligned with the risk appetite of the Bank and escalate the breaches to the Senior Officials
consolidated and separate audited financial statements of EBL
of the Bank.
(Group and Bank) available on the website of the Bank (www.ebl. EBL Asset Management Ltd.: EBL Asset Management Limited
• Contribute towards Bank’s profitability by providing analysis on risk adjusted results; facilitating for informed decision making.
com.bd). The report is prepared once a year and is available in (EBLAML) was incorporated on 9 January 2011 to carry out asset
• Ensure Bank’s risk management framework is going as per the goal, mission and vision of the Bank.
the website. management business, capital market operation, equity investment

118 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 119
etc. EBLAML obtained license from Bangladesh Securities & C. Capital adequacy D. Credit risk together has structured the credit risk management framework in

Governance Reports
Exchange Commission (BSEC) on 25 May 2017 to run full-fledged the bank. The Credit Policy Manual contains the core principles for
business operations. Registered office of EBLAML is located at Qualitative disclosures Qualitative disclosures identifying, measuring, approving, and managing credit risk in the
Bangladesh Shipping Corporation (BSC) Tower, 2-3 Rajuk Avenue bank and is designed to meet the organizational requirements that
(a) A summary discussion of the bank’s approach to assessing the (a) General Disclosure
(4th Floor), Motijheel C/A, Dhaka - 1000, Bangladesh. exist today as well as to provide flexibility for future. These policies
adequacy of its capital to support current and future activities. represent the minimum standards for credit extension by the bank,
Credit risk is defined as the probability of failure of counterparty
The financials are fully consolidated and all intercompany and are not a substitute of experience and good judgment.
Assessing regulatory capital in relation to overall risk exposures of to meet its obligation as per agreed terms. Banks are very
transactions and balances are eliminated.
a bank is an integrated and comprehensive process. EBL follows much prone to credit risk due to its core activities i.e. lending to
Definitions of past due and impaired credit
(c) Any restrictions, or other major impediments, on transfer of funds Corporate, Consumer, SME, another bank/FI. The main objective of
the ‘asset based’ rather than ‘capital based’ approach in assessing
or regulatory capital within the group. credit risk management is to minimize negative impact through To define past due and impairment through classification and
the adequacy of capital to support current and projected business
adopting proper mitigates and to limit credit risk exposures within provisioning, the bank follows Bangladesh Bank Circulars and
activities. The Bank focuses on strengthening risk management
The rules and regulations of BRPD of Bangladesh Bank that acceptable limit. Guidelines. Accordingly, any Continuous Loan if not repaid/
and control environment rather than increasing capital to cover
govern ‘Single Borrower Exposure Limit’ for the customers are renewed within the fixed expiry date for repayment or after the
up weak risk management and control practices. EBL has been Credit risk management has been independent of origination
equally applicable for the Bank in financing its own subsidiaries. demand by the bank will be treated as past due/overdue from the
generating most of its incremental capital from retained profit of business functions to establish better control and to reduce
Bank is following latest Bangladesh Bank circular in determining following day of the expiry date. Any Demand Loan if not repaid
(stock dividend and statutory reserve transfer etc.) and occasional conflicts of interest. The Head of Credit Risk Management (HoCRM)
maximum amount of finance to the subsidiaries of the Bank. within the fixed expiry date for repayment or after the demand by
issue of subordinated debt and right shares to support incremental has well-defined responsibility for management of credit risk. Final
the bank will be treated as past due/overdue from the following
Quantitative disclosures growth of Risk Weighted Assets (RWA). Besides meeting regulatory authority and responsibility for all activities that expose the bank
day of the expiry date. Whereas, in case of any installment (s) or
capital requirement, the Bank maintains adequate capital to to credit risk rests with the Board of Directors. The Board however
(d) The aggregate amount of surplus capital of insurance subsidiaries part of installments (s) of a Fixed Term Loan is not repaid within
absorb material risks foreseen. Therefore, the Bank’s Capital to delegated authority to the Managing Director and CEO or other
(whether deducted or subjected to an alternative method) included in the fixed expiry date, the amount of unpaid installments (s) will
Risk Weighted Assets Ratio (CRAR) remains consistently within officers of the credit risk management division.
the capital of the consolidated group. be treated as past due/overdue after six months of the expiry
regulatory limit during 2020 (14% plus). The surplus capital
The Board of Directors (BoD) sets credit policies and delegates date. The summary of objective criteria for loan classification and
Not Applicable. maintained by EBL will act as buffer to absorb all material risks
authority to the management for setting procedures, which provisioning requirement is as below:
and to support the future activities. To ensure the adequacy of
B. Capital structure capital to support the future activities, the bank assesses capital
requirements periodically considering future business growth.
Qualitative disclosures+   Loans Classification
Risk Management Division (RMD) under guidance of the SRP team/
Sub Standard Doubtful Bad & Loss
(a) Summary information on the terms and conditions of the main ERMC (Executive Risk Management Committee), is taking active Type of Facility
(Overdue Period) (Overdue Period) (Overdue Period)
features of all capital instruments, especially in case of capital measures to identify, quantify, manage and monitor all risks to
instruments eligible for inclusion in Common Equity Tier-1, Additional which the Bank is exposed to. Continuous Loan & Other than CMS *: Other than CMS: Other than CMS:
Tier 1 or Tier 2. Demand Loan 3 months or more but less than 9 9 months or more but less than 12 months or more.
Quantitative disclosures months. 12 months.
Regulatory capital base is quite different from accounting capital.  BDT in million
As per Basel III guidelines, regulatory capital consists of Tier-1 Particulars Solo (Bank) Consolidated CMS: CMS: CMS:
(Common Equity Tier 1 and Additional Tier 1) and Tier 2 capital. Capital requirement for
18,613 18,732 6 months or more but less than 18 18 months or more but less than 30 months or more.
Tier I Capital is known as going concern capital and Tier II Capital Credit Risk months. 30 months.
also known as gone concern capital. Capital requirement for
911 1,209
• Common Equity Tier-1 (CET1) capital of EBL consists of Fully Market Risk Fixed Term Loan [1] Other than CMS: Other than CMS: Other than CMS:
Paid-up Capital, Statutory Reserve, General Reserve, Retained Capital requirement for 3 months or more but less than 9 9 months or more but less than 12 months or more
2,241 2,312
Earnings and Dividend Equalization Fund. Operational Risk months. 12 months.
Minimum capital
• Tier-2 capital of EBL consists of general provision and 21,765 22,254
requirement (MCR)
subordinated debt. CMS: CMS: CMS:
Total regulatory capital 33,144 33,447
6 months or more but less than 18 18 months or more but less than 30 months or more.
• At present, EBL doesn’t hold any Additional Tier 1 (AT1) Capital. Risk weighted assets 217,654 222,540
months. 30 months.
Quantitative disclosures Capital to Risk Weighted
15.23% 15.03%
 BDT in million Assets Ratio Short Term Agricultural & 12 months or more but less than 36 36 months or more but less than 60 months or more
Common Equity Tier-1 Micro Credit months 60 months
Particulars Solo (Bank) Consolidated 10.78% 10.68%
(CET-1) Capital Ratio
Common Equity Tier-1
25,779 26,165 Tier-2 Capital Ratio 4.45% 4.35% * CMS means Cottage, Micro and Small credits defined in SMESPD Circular No. 02 dated 05 September 2019.
(CET-1) Capital
Capital Conservation Buffer
Regulatory adjustments (2,313) (2,395) 5,441 5,564
(CCB): 2.50% of RWA Specific provisions for classified loans and general provisions for unclassified loans and advances and contingent assets are measured
Total Common Equity Tier -1 Capital Conservation Buffer following BB prescribed provisioning rates as mentioned below:
23,466 23,769 4.78% 4.68%
Capital (%) maintained
Additional Tier 1 Capital - - Available Capital under Pillar
5,937 5,629
Tier-2 Capital 9,678 9,678 II requirement*
Total Regulatory Capital 33,144 33,447
*Total regulatory capital less MCR less CCB

120 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 121
Specific provisions for classified loans and general provisions for unclassified loans and advances and contingent assets are measured (d) Sector wise exposure of Total loan (31-12-20):

Governance Reports
31-12-2020
following BB prescribed provisioning rates as mentioned below: Particulars
 BDT in million Amount Mix (%)

Heads Rates of provision Particulars 31-12-2020 Mix (%) Metal & steel products 153 2.46%
Agri and micro credit through Readymade garments industry 328 5.27%
General provision on:   14,219 6.21%
NGO Ship breaking industry 1,856 29.81%
Unclassified (including SMA) small and medium enterprise 0.25% Commercial and trading 30,670 13.40%
Sugar, edible oil refinery & food
Unclassified (including SMA) Loans to BHs/MBs/SDs against shares etc. 2% Construction 8,789 3.84% 102 1.63%
processing
Unclassified (including SMA) loans for housing finance 1% Cement and ceramic industries 3,667 1.60%
Transport & e-communication 96 1.54%
Chemical and fertilizer 3,825 1.67%
Unclassified consumer financing including credit card (other than housing finance) 2% Textile mills 1 0.02%
Crops, fisheries and livestock 1,224 0.53%
Unclassified (including SMA) other loans and advances 1% Electronics and electrical goods 3,757 1.64% Others 564 9.06%
Short term agri credit and micro credit 1% Food and allied industries 10,873 4.75% Total 6,226 100.00%
Special General Provision COVID-19 (on PBD facilitated accounts) 1% Consumer finance 29,629 12.94%
(g) Gross Non-Performing Assets (classified loan)
Metal and steel products 17,487 7.64%
Off-balance sheet exposures (excluding Bills for collection) 0%-1%
   
Pharmaceutical industries 2,704 1.18% On the reporting date i.e. 31 December 2020, Gross Non-Performing
Specific provision on:   Power and fuel 8,058 3.52% Assets/classified loans stood at BDT 6,226 million.
Rubber and plastic industries 2,799 1.22%
Substandard loans other than short term agri credit, micro credit and CMSME 20%
Readymade garments industry 33,141 14.48% Non-Performing Assets (classified loans) to Outstanding Loans &
Doubtful loans other than short term agri credit, micro credit and CMSME 50% Ship building & breaking advances
6,710 2.93%
Substandard & doubtful loans short term agri credit and micro credit 5% industry
Sugar and edible oil refinery 4,873 2.13% On the reporting date i.e. 31 December 2020, Non-Performing Assets
Substandard loans CMSME 5%
Transport and (classified loans) to outstanding loans & advances was 2.72%.
Doubtful loans CMSME 20% 5,559 2.43%
e-communication
Bad/Loss loans and advances 100% Textile mills 11,713 5.12% Movement of Non-Performing Assets (classified loans)
Other manufacturing or  BDT in million
12,778 5.58%
extractive industries Particulars 2020 2019
Quantitative disclosures  BDT in million Others 16,468 7.19%
(b) Total gross credit risk exposures (by major types) of 31-12-20: Opening balance 7,771 4,926
Particulars Amount Total 228,944 100.00%
Outside Bangladesh Additions during the year 29 4,139
 BDT in million (e) Residual contractual maturity of credit exposure (31-12-20):
Loans, cash credits, overdrafts etc. 3,986 Reductions during the year (1,575) (1,294)
Particulars Amount
Total 228,944 Closing balance 6,226 7,771
 BDT in million
Inside Bangladesh
Continuous loan (CL-2) (C) Geographical distribution of exposures (31-12-20): Particulars Amount Movement of Specific Provisions for NPAs (Provisions for classified loans)
Consumer Financing (CF) 5,693  BDT in million  BDT in million
On demand 17,895
Small & Medium Enterprise (SME) 6,615 In not more than one month 8,440 Particulars 2020 2019
Division Total
Loans to BHs/MBs/SDs against Shares 1,300 In more than one month but not more Opening balance 6,009 4,118
Inside Bangladesh 30,284
Other than SMEF, CF, BHs/MBs/SDs 20,482 than three months On fully provided debt written
In more than three months but not more - -
34,090 Dhaka Division 163,883 85,402 off during the year
than one year On recovery from loans written
Demand loan (CL-3) Chattogram Division 50,343 726 636
In more than one year but not more than off earlier
Small & Medium Enterprise (SME) 7,512 70,885
Sylhet Division 1,607 five years Specific provision charged (net
765 1,255
Other than SMEF, CF, BHs/MBs/SDs 81,775 In more than five years 16,038 of recovery) for the year
Rajshahi Division 3,575
89,287 Total 228,944 Provision held at the end of
Khulna Division 3,939 7,499 6,009
Term loan (CL-4) the year
Rangpur Division 729 (f) Sector wise exposure of classified loans (31-12-20):
Consumer Financing (including staff, other than HF) 11,928
E. Equities: Disclosures for banking book positions
Housing Financing (HF) 3,680 Barishal Division 390  BDT in million
Small & Medium Enterprise 17,979 Qualitative disclosures
Mymensingh Division 492
31-12-2020
Other than SMEF, CF, BHs/MBs/SDs 65,554 Particulars Differentiation between holdings on which capital gains are expected
224,958 Amount Mix (%)
99,141 and those taken under other objectives including for relationship and
Outside Bangladesh Commercial and trading 2,683 43.09%
Short term agri credit and microcredit (CL-5) strategic reasons
Bills financed & UPAS (by EBL Finance HK Ltd) 3,986 Crops, fisheries & livestock 5 0.07%
Short term agri credit 2,440
Investment in equity securities by EBL is broadly categorized into
Total 228,944 Electronics & electrical goods 21 0.33%
2,440 two types: Quoted securities (Ordinary shares, Mutual Funds) and
Individuals 418 6.71%
Un-quoted securities (including preference share and subscription

122 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 123
for private placement). Unquoted securities are categorized as maturity) and securities that are acquired under private placement Assumptions: For Gap analysis, bank considers the following: Value of its Equity (MVE) to interest rate movements. Duration Gap

Governance Reports
banking book exposures which are further subdivided into two or IPO and are going to be traded in the secondary market after can be used to evaluate the impact on the Market Value of Equity
• For fixed-rate contract, remaining maturity is considered.
groups: unquoted securities which are invested without any completing required formalities. Usually these securities are held of the bank under different interest rate scenarios. ALCO monitors
expectation that these will be quoted in near future (i.e. held to for trading or investment for making capital gains. • For contracts with provision of re-pricing, time remaining for the Leveraged Liability Duration and duration gap of the total bank
next re-pricing is considered. balance sheet on a quarterly basis to assess the impact of parallel
• For assets and liabilities which lack definitive re-pricing shift of the assumed yield curve.
Discussion of important policies covering the valuation and accounting of equity holdings in the banking book.
interval or for which there is no stated maturity, bank
determines the core and volatile portion. For assets, volatile Particulars Dec-31, 2020 Dec-31, 2019
Measurement after initial
Investment class Initial recognition Recording of changes portion is bucketed till 3 months using historical repayment Duration of Asset 1.71 1.25
recognition
behavior and stable portion is bucketed in 6-12 months
Govt. T-bills/bonds - Held Revaluation loss to profit and loss account, but gain Duration of Liabilities 1.56 1.37
Cost Fair value bucket. For liabilities, volatile portion is bucketed till 1 year
For Trading (HFT) to revaluation reserve account.
using historical withdrawal behavior and stable portion is Duration Gap 0.30 -0.00349
Increase in value of securities is booked to equity
Govt. T-bills/T-bonds - bucketed in over 1 year segment.
Cost Amortized cost as amortization gain, but decrease to profit and loss
Held To Maturity (HTM) Changes in Market value of Equity due to an increase in
account. • Deposits that are already matured but not withdrawn yet are
interest Rates as of 31st December, 2020
At realizable value. Unrealized loss to profit and considered to be fall under overnight bucket.
Debenture/bond Cost Cost
loss account. 1% 2% 3%
Also, following assumptions are met:
Provision for revaluation loss (net off gain)
Lower of cost or market BDT 912.94 Million BDT 1,825.89 Million BDT 2,738.83 Million
Shares (quoted) * Cost is charged to profit and loss account but no • The main assumption of gap analysis is that interest rate
value (portfolio basis)
unrealized gain booking. moves on a parallel fashion. In reality however, interest rate
Lower of cost or Net Asset Provision for unrealized loss to profit and loss does not move on parallel fashion. G. Market risk
Shares (unquoted)* Cost
Value (NAV) account but no unrealized gain booking.
• Contractual repayment schedule is met. Qualitative Disclosures
Lower of cost and (higher
Provision for unrealized loss (net) to profit and loss
Mutual fund (closed-end) * Cost of market value and 85% • Re-pricing of assets and liabilities takes place in the midpoint
account but no unrealized gain booking. Market Risk: Market Risk is defined as the possibility of loss due
of NAV) of time bucket.
Prize bond Cost Cost None to changes in the market variables. It is the risk that the value
• The expectation that loan payment will occur in schedule.
of on/off-balance sheet positions will be adversely affected by
* Provision for shares against unrealized loss (gain net off) has been made as per DOS circular no. 4 dated 24 November 2011 and for • No early encash is considered in term and recurring deposit. movements in equity price, interest rate and currency exchange
mutual funds (closed-end) as per DOS circular letter no. 3 dated 12 March 2015 of Bangladesh Bank. rates. The objective of our market risk policies and processes
• Non maturity deposit withdrawal is considered based on past
withdrawal behavior. is to obtain the best balance of risk and return whilst meeting
customers’ requirements. The primary categories of market risk
• Interest paid on liabilities tend to move faster than interest for the bank are:
rates earned on assets.
Quantitative disclosures F. Interest rate risk in the banking book (IRRBB)
• Interest rate attached to bank assets and liabilities do not Interest rate risk: Arising from changes in yield curves, credit
Qualitative disclosures spreads and implied volatilities on interest rate options.
Value disclosed in the balance sheet of investments, as well as the fair move at the same speed as market interest rates.
value of those investments; for quoted securities (a) General Disclosure
• Point at which some assets and liabilities are re-priced is not Currency exchange rate risk: Arising from changes in exchange
IInterest Rate Risk is the risk which affects the Bank’s financial easy to identify. rates and implied volatilities on foreign exchange options.
 BDT in million
condition due to change of market interest rates. Changes in interest
Particulars Solo (Bank) Consolidated Quantitative disclosures: Equity price risk: Arising from changes in the prices of
rates affect both the current earnings (earnings perspective) and also
The cumulative realized gains the net worth of the Bank (economic value perspective). Bank assesses equities, equity indices, equity baskets and implied volatilities
Funding Gap Analysis: on related options.
(losses) arising from sale and the interest rate risk both in earning and economic value perspective.
liquidation in the reporting 39 77 Funding GAP Analysis attempts to determine the potential impact
period/Net gain/(loss) on sale of The process of interest rate risk management by the bank involves on net interest income (NII) due to changes in interest rate. Bank has a comprehensive Treasury Trading Policy, Asset-
quoted securities determination of the business objectives, expectation about Liability Management Policy, Investment Policy approved by the
future macro-economic variables and understanding the money Result of Funding Gap analysis as on December 31, 2020: BoD to assess, monitor and manage all the above market risks.
Total unrealized gains (losses)/
markets and debt market in which it operates. Interest rate risk Various internal limits have been set to monitor market risk and
Provision for revaluation of shares 687 843
management also includes quantifying the appetite for market risk capital requirement is assessed as per standardized approach of
(net) Particulars 3 months 6 months
to which bank is comfortable. Basel III.
Total latent revaluation gains
- - For 1% increase/decrease in BDT ± 13.00 BDT ± 43.80
(losses) The Bank uses the following approach to manage interest rate risks Methods used to measure Market Risk: Bank applies maturity
interest rate, impact on NII Million Million
inherent in the Balance sheet: method in measuring interest rate risk in respect of securities
Any amount of the above included in trading book. The capital charge for entire market risk
- - For 2% increase/decrease in BDT ± 26.00 BDT ± 87.70
in Tier 2 capital Simple Gap Analysis: Traditional Gap analysis of on-balance sheet exposure is computed under the standardized approach using the
interest rate, impact on NII Million Million
Asset Liability Management (ALM) involves careful allocation of maturity method and in accordance with the guideline issued by
Capital charge required for quoted
548 846 assets and liabilities according to re-pricing/maturity buckets. This Bangladesh Bank.
securities: Duration GAP Analysis:
approach quantifies the potential change in net interest income
Specific risk 274 423
using a specified shift in interest rates, e.g. 100 or 200 basis points, The focus of the Duration GAP Analysis is to measure the level of a Market Risk Management System: To manage the interest rate
General market risk 274 423 or a simulated future path of interest rates. bank’s exposure to interest rate risk in terms of sensitivity of Market risk, ALCO regularly monitors various ratios and parameters. Of

124 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 125
the ratios, the key ratios that ALCO regularly monitors are Liquidity To manage foreign exchange risk of the bank, the bank has adopted Fraud Risk is the risk of incurring losses as a result of an intentional arises from mismatch in the expected level of cash flows from

Governance Reports
Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR), and the limit set by central bank to monitor foreign exchange open act or omission by a third party involving dishonesty, for personal maturing assets and liabilities. The intensity and sophistication
Maximum Cumulative Outflow (MCO), Liquid asset to total assets, positions. Foreign exchange risk is computed on the sum of net and/or business gain, to avoid personal and/or business loss, or to of liquidity risk management system depends on the nature, size
Volatile liability dependency ratio, Snap liquidity ratio and Short short positions or net long positions, whichever is higher. FX VaR of conceal improper or unauthorized activity. This includes facilitation, and complexity of a bank’s activities. Sound methods in measuring,
term borrowing to Liquid assets ratio. ALCO also regularly monitors December 2020 end are as follows: misrepresentation, money laundering, terrorist financing, theft, monitoring and controlling liquidity risk is critical to sustainability
the interest rate sensitive gap and duration gap of total portfolio. forgery and cyber-crime. of the bank. Therefore, The Board of Directors of the bank sets
policy, different liquidity ratio limits, and risk appetite for liquidity
Figures in BDT Business Continuity Risk is the risk of incurring losses resulting risk management.
from the interruption of normal business activities, i.e. interruptions
Value-at-Risk (Loss in percent of present value)
to our infrastructure as well as to the infrastructure that supports Methods used to measure liquidity risk
Time horizon our businesses.
Confidence level The tools and procedures deployed by EBL to manage liquidity
1 day 2 days 3 days 4 days 5 days risk are comprehensive. The measurement tools used to assess
Information Security Risk is the risk of an event which could
90% 190,211 243,127 352,471 407,976 465,422 result in the compromise of organizational assets, including, liquidity risks are:

95% 236,455 364,589 497,677 577,713 618,186 but not limited to, unauthorized use, loss, damage, disclosure or • Statutory Liquidity Requirement (SLR)
modification of organization assets. It includes the risk of cyber • Cash Reserve Ratio (CRR)
99% 2,251,125 2,250,996 2,292,337 2,459,908 2,291,734
threats on the organization.
• Asset to Deposit Ratio (ADR)
To manage equity risk, the Investment Committee of the bank takes prudent decisions complying sectoral preferences as per investment Regulatory Compliance Risk is the risk of incurring regulatory • Structural Liquidity Profile (SLP)
policy of the bank and capital market investment limit set by BB. sanctions (including restrictions on business activities, fines or • Maximum Cumulative Outflow (MCO)
enhanced reporting requirements), financial and/or reputational • Liquidity Coverage Ratio (LCR)
damage arising from our failure to comply with applicable laws,
Quantitative disclosures: Policies and processes to mitigate operational risk: The • Net Stable Funding Ratio (NSFR)
rules and regulations.
bank captures some identified risk events associated with all • Volatile Liability Dependency Ratio
Capital charge required (Solo basis) for market risk on the reporting
functional departments of the bank through standard reporting Vendor Risk arises from adverse events and risk concentrations
date 31-12-20: • Liquid Asset to Total Deposit Ratio
format, Departmental Control Function Check List (DCFCL), due to failures in vendor selection, insufficient controls and
 BDT in million • Liquid Asset to Short Term Liabilities
Quarterly Operation Report (QOR), Key Risk Indicator (KRI), oversight over a vendor and/or services provided by a vendor and
Particulars Amount internal audit, monitoring, and system check etc. Internal Control other impacts to the vendor itself. Liquidity risk management system
and Compliance Division (ICCD) is detecting ‘High’ Risk areas
a Interest rate risk 317 and finding mitigation of those risks. ERMC also oversees the Approach for calculating capital charge for operational risk: The Responsibility of managing liquidity lies with Asset Liability
b Equities 548 operational risk issues. ERMC analyzes ‘high’ and ‘moderate’ risk bank applies ‘Basic Indicator Approach’ of Basel III as prescribed by Committee (ALCO) of the bank which meets at least once in
indicators and sets responsibility for specific people to resolve the BB in revised RBCA guidelines. Under this approach, banks have to every month. Asset and Liability Management (ALM) desk closely
c Foreign exchange risk 46 monitors and controls liquidity requirements on a daily basis by
issues. calculate average annual gross income (GI) of last three years and
d Commodity risk multiply the result by 15% to determine required capital charge. proper coordination of funding activities. A monthly projection of
Performance gap of executives and staffs: EBL is an equal fund flows is reviewed in ALCO meeting regularly.
Total 911 Gross Income is the sum of ‘Net Interest Income’ and ‘Net non-
opportunity employer. It recognizes the importance of having the
interest income’ of a year or ‘Total Operating Income’ of the bank
right people in right positions to achieve organizational goals. Our Policies and processes for mitigating liquidity risk
H. Operational risk with some adjustments as noted below. GI shall:
recruitment and selection is governed by the philosophy of fairness,
In order to develop comprehensive liquidity risk management
transparency and diversity. Understanding what is working • Be gross of any provision (e.g. for unpaid interest),
Qualitative Disclosures framework, EBL has constructed Contingency Funding Plan (CFP)
well and what requires further improvement is essential to our
• Be gross of operating expenses, including fees paid to to manage liquidity in both normal and stressed conditions. CFP
Operational Risk: Operational risk is the risk of loss arising performance management system. The performance management
outsourcing service providers, includes a set of policies and procedures that serves as a blueprint
from fraud, unauthorized activities, error, omission, inefficiency, process aims to clarify what is expected from employees as well as
• Include lost interest i.e. interest suspense on classified loans for the bank to meet its funding needs in a timely manner and
systems failure or external events. It is inherent in every business how it is to be achieved.
(SS, DF, BL). at a reasonable cost. CFP is an extension of ongoing liquidity
organization and covers a wide spectrum of issues. We seek to
Our learning and development strategy puts special focus on management while ensuring:
minimize exposure to operational risk, subject to cost benefit
continuous professional development to strengthen individuals’ Quantitative disclosures:
trade-offs. • Reasonable liquid assets are maintained;
skill set by removing weaknesses to perform the assigned job with  BDT in million
perfection. We have a wide range of internal and external training • Measurement and projection of funding requirements in
Views of Board on system to reduce Operational Risk: The policy
programs to enhance capabilities as well as minimize performance  Particulars Solo (Bank) Consolidated different scenarios; and
for measuring and managing operational risks is approved by the
Board in line with the relevant guidelines of Bangladesh Bank. gap that will contribute more to bottom line. Capital charge for operational risk 2,241 2,312 • Management of access to funding sources.
Audit Committee of the Board directly oversees the activities Maturity bucket of cash inflows and outflows is an effective tool to
Peoples’ performance is assessed on the bases of performance
of Internal Control and Compliance Division to protect against I. Liquidity ratio determine bank’s cash position; that estimates cash inflows and
objectives and key performance indicators (KPI) set at the beginning
all operational risks. As a part of continued surveillance, the outflows with net deficit or surplus (GAP) both on a day to day basis
of each year. Decisions related to rewards and recognitions for the
management committee (MANCOM), Executive Risk Management Qualitative Disclosures and over a series of specified time periods. A bucket wise (e.g. call,
employees are taken on the bases of how well the assigned KPIs
Committee (ERMC) and Risk Management Division (RMD) regularly 2-7 days, 8 days-1 month, 1-3 months, 3-12 months, 1-5 years, over
are met by the employee. Views of BoD on System to reduce liquidity risk
review different aspects of operational risks and escalate the 5 years) maturity profile of the assets and liabilities is prepared
findings to appropriate authority while internal audit suggests Potential external events: The overall environment within which Liquidity Risk is the risk of bank’s inability to repay its obligations to understand mismatch in every bucket. A structural maturity
formulating appropriate policies, tools & techniques for mitigation a bank operates creates certain externalities which could affect as they fall due or incurring excessive cost while mobilizing fund ladder or profile is prepared periodically following guidelines of the
of operational risk of the bank. business performance directly such as: due to scarcity of cash fund at a certain period of time. The risk Bangladesh Bank.

126 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 127
Quantitative disclosures: K. Remuneration for the business. This includes salary, fixed pay allowance, and and skilled employees tend to increase as disproportionate number

Governance Reports
other cash allowances. These payments are fixed and do not vary of financial institutions chase them. As a result, compensation
Liquidity Coverage Ratio and Net Stable Funding Ratio as on 31
Qualitative Disclosures with performance. package for skilled resources is relatively high and salary revision
December 2020 are given below:
takes place more frequently than other industries. Excessive
 BDT in million EBL wants to attract, retain and motivate top talents to meet
Benefits: turnover of human resources, skill shortage, inability to attract and
its sustainable growth. The bank offers a competitive pay and
Particulars Amount benefits package to create an exemplary team for this sustainable retain good people are some of the risks banks have to consider
EBL provides benefits in accordance with local market practice.
Stock of High quality liquid assets 66,510.32 growth. Our compensation and benefits strategy combines the with. However, EBL designed its remuneration package as per
This includes subsidized loans (car, house building), hospital bill
need to maintain a high performance culture along with market market driven strategy to ensure right package for the right people.
Total net cash outflows over the next 30 calendar days 31,535.92 reimbursement, TA/DA etc.
competitiveness. A bi-annual benchmarking exercise makes On top of it, in designing remuneration package, EBL ensures fair
Liquidity Coverage Ratio (%) 210.90%
sure that employees’ pay is competitive. Moving between pay Annual Incentives: treatment, internal equity and external competitiveness to retain
scales depends on the individuals' performance and we reward good resources.
Available amount of stable funding 257,567.16 EBL provides annual incentives to drive and reward performance
employees accordingly. An overview of the nature and type of the key measures used to take
Required amount of stable funding 244,162.68 based on annual financial and non-financial measures consistent
with the medium to long-term strategy, shareholder interest and account of these risks; including risks difficult to measure (values
Net Stable Funding Ratio (%) 105.49% a) Information relating to the bodies that oversee remuneration.
adherence to EBL values. need not be disclosed).
Name, composition and mandate of the main body overseeing
Regulations of Pay and Allowances Market survey is conducted periodically to compensate employees
J. Leverage ratio remuneration.
for their expertise, time, mental and social engagement with the
EBL has a Board approved People Management Policy that outlines • Salaries are confidential between the concerned employees organization.
Qualitative Disclosures
the rules relating to compensation structure and the benefits package and Human Resources Division.
Views of BoD on System to reduce excessive leverage A discussion of the ways in which these measures affect remuneration.
for its people and gives detailed procedures for exercising those. • The grade-wise scale of pay and other allowances of employees
are determined by the competent authority from time to time. These measures ensure that the remuneration process of EBL is:
Leverage ratio is the ratio of Tier 1 capital to total on and off-balance External consultants whose advice has been sought, the body
• Salary revision is decided by the Managing Director & CEO
sheet exposures. It was introduced into the Basel III framework as by which they were commissioned, and in what areas of the • Right employees are getting right package as per their
with the approval of the Board of Directors based on:
a non-risk based backstop limit, to supplement risk-based capital remuneration process. performance, quality of experience, training received and
requirements. EBL has embraced this ratio along with Basel III a. Individual Performance
special expertise.
guideline as a credible supplementary measure to risk based Presently EBL does not have any separate body or external party to b. Market movement
oversee remuneration. • Ensure internal & external equity
capital requirement and assess the ratio periodically. c. The Bank’s affordability
d. Individual’s relative position in a particular salary range A discussion of how the nature and type of these measures has
Policies and processes for managing excessive on and off- A description of the scope of the bank’s remuneration policy (e.g.
changed over the past year and reasons for the change, as well as the
balance sheet leverage by regions, business lines), including the extent to which it is e. COLA (Cost Of Living Adjustment)
impact of changes on remuneration.
applicable to foreign subsidiaries and branches.
Revised guideline of RBCA based on Basel III as provided by BRPD of Any request for information relating to salary should be directed to
No changes took place.
Bangladesh Bank is followed by EBL while managing excessive on The said policy applies to all the employees of the bank. Local and the Human Resources Division by appropriate authority.
and off-balance sheet leverage of the bank. As per RBCA guideline, foreign subsidiaries of EBL are governed by their policies. If they (d) Description of the ways in which the bank seeks to link
don’t have such policies, EBL policy will be applicable. Whether the remuneration committee reviewed the firm’s
leverage ratio indicates Tier I Capital divided by Total Exposure performance during a performance measurement period with
remuneration policy during the past year, and if so, an overview of any
after related deductions. different levels of remuneration.
A description of the types of employees considered as material changes that were made.
Approach for calculating exposure risk takers and as senior managers, including the number of An overview of main performance metrics for bank, top-level business
employees in each group. Remuneration structure of the bank is reviewed as and when
lines and individuals.
The Bank has calculated the regulatory leverage ratio as per the management deem appropriate to allow for adjustments in the cost
guideline of Basel III. The numerator, capital measure, is calculated All of the Management Committee (MANCOM) members are of living and market forces pertaining to the banking industry. HR At EBL, salary increment and promotion is purely linked with
using the new definition of Tier I capital applicable from 01 considered as material risk takers and are mostly Senior Managers. Division initiates the process, makes proposal to Board for approval. performance. As per policy, performance evaluation is done for all
January 2015. The denominator, exposure measure, is calculated MANCOM is the highest decision and policy making authority of the permanent employees. In addition to yearly review of performance,
on the basis of the Basel III leverage ratio framework as adopted by management comprising of MD & CEO and different business and A discussion of how the bank ensures that risk and compliance
a quarterly review is also carried out. Performance evaluation is
Bangladesh Bank. support unit heads. employees are remunerated independently of the businesses they
done on the below parameter:
oversee.
Quantitative Disclosure: b) Information relating to the design and structure of • Business Objectives
remuneration processes. EBL ensures that Risk and Compliance employees are remunerated
Leverage Ratio (Solo Basis) on 31 December 2020 is given below: • Personal Development Objective
independently as the remuneration package is set by the
 BDT in million An overview of the key features and objectives of remuneration policy management and applicable for all employees irrespective of • Management Objectives
profession or area. • Operational and compliance objective
Particulars Amount Remuneration policy of the bank has been framed to maintain a
• Behavioral competency
performance based reward policy which recognizes the contribution
On balance sheet exposure (A) 329,436 C) Description of the ways in which current and future risks are
of each of the employees of the bank. A discussion of how amounts of individual remuneration are linked to
taken into account in the remuneration processes.
Off balance sheet exposure (B) 65,669
bank-wide and individual performance.
EBL’s reward package consists of the following key elements:
Regulatory Adjustments (C) 2,313 An overview of the key risks that the bank takes into account when
implementing remuneration measures. Overall performance is evaluated as per above mentioned
Total exposure (A+B-C) 392,793 Fixed pay:
parameters and individuals are rated accordingly from 1 (highest)
The purpose of fixed pay is to attract and retain employees by In a highly competitive financial sector like banking, remuneration to 6 (lowest). Increment is linked with the rating employees receive
Leverage Ratio 5.97%
paying competitive pay for the role, skills and experience required system is mostly dictated by market forces. Demands for efficient during the performance evaluation process.

128 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 129
A discussion of the measures the bank will, in general, implement to Number and total amount of guaranteed bonuses awarded during the
Management of Non-performing Loan (NPL)

Governance Reports
adjust remuneration in the event that performance metrics are weak. financial year:

No adjustment took place as EBL maintains a standard performance Two basics as two festival bonuses. NPL is a typical by-product of weak underwriting and governance NPL, being a double-edged sword, erodes interest income as well
evaluation process.
practices and sometimes fueled by adverse externalities. It is as eats up profit in the form of provision. Timely and efficient
Number and total amount of sign-on awards made during the
(e) Description of the ways in which the bank seek to adjust a common phenomenon in the lending business which, if not management of NPL is crucial for the sustenance and consistence
financial year. Not applicable
remuneration to take account of longer-term performance. checked, can very well disrupt the financial system and macro- performance of a bank. Effective NPL management should lead to:
Number and total amount of severance payments made during the economic stability. Managing NPL has become one of the toughest
A discussion of the bank’s policy on deferral and vesting of variable • Avoiding probable decrease in net interest income.
financial year. Not applicable things under ongoing corona pandemic. In 2020 NPLs were mostly
remuneration and, if the fraction of variable remuneration that • Reduction in impairment costs.
shielded off by BB’s forbearance to downgrade the classification
is deferred differs across employees or groups of employees, a Total amount of outstanding deferred remuneration, split into cash, • Savings for capital requirements for high-risk weighted
status of any loan and payment pause facility. These initiatives have
description of the factors that determine the fraction and their relative shares and share-linked instruments and other forms. Not applicable assets.
given a much needed breathing space for the borrowers battered
importance. • Enhanced risk appetite for new lending.
by the unprecedented crisis and allowed the financial sectors to
Total amount of deferred remuneration paid out in the financial year.
Not applicable. absorb the shock gradually. Nonetheless some of the businesses • Higher rating and lower cost of funding increasing equity
Not applicable. valuations.
were impacted permanently and this will impact NPL management
A discussion of the bank’s policy and criteria for adjusting deferred of financial institutions, regardless of their size and prudence in • Savings of management time and servicing costs to resolve
Breakdown of amount of remuneration awards for the financial year
remuneration before vesting and (if permitted by national law) after risk management. the problem.
vesting through claw back arrangements. to show:

Not applicable. • fixed and variable.

• deferred and non-deferred. Bangladesh Bank’s initiatives to combat COVID 19 impacts
(f) Description of the different forms of variable remuneration
• different forms used (cash, shares and share linked instruments,
that the bank utilizes and the rationale for using these different
forms. other forms).

An overview of the forms of variable remuneration offered (i.e. cash, Not applicable.
shares and share-linked instruments and other forms).
Quantitative information about employees’ exposure to implicit (e.g.
EBL recognizes the effort and performance of its employees based fluctuations in the value of shares or performance units) and explicit Extension of working Payment deferral facility Restriction against Suspension to the loan Maintaining 1%
on its People Management Policy which consists of base salary adjustments (e.g. claw-backs or similar reversals or downward capital loans during for term loans during down gradation of borrowers on their loan additional provision
and different benefit packages mentioned earlier. Therefore, EBL revaluations of awards) of deferred remuneration and retained 2020. 2020. classification status of repayments during against all regular loans
does not use any form of variable remuneration in its remuneration remuneration: loans till 31 December 2020. which enjoyed payment
process. However, EBL practice sales commission based 2020. deferral facility in the
remuneration process for contractual staffs. • Total amount of outstanding deferred remuneration and retained name of "Special General
remuneration exposed to ex-post explicit and/or implicit Provision: COVID-19".
Quantitative disclosures: adjustments.
In anticipation of probable deterioration in asset quality once all these facilities will be withdrawn during 2021 and onwards, we have
Number of meetings held by the main body overseeing remuneration • Total amount of reductions during the financial year due to e post
maintained an excess amount of provision of BDT 1,768.33 million at the end of 2020.
during the financial year and remuneration paid to its member: explicit adjustments.
• Total amount of reductions during the financial year due to ex
No such meeting as there is no designated remuneration Initiatives taken in channeling government stimulus packages
committee. HR Division is assigned to initiate any change proposal post implicit adjustments.
In 2020 due to coronavirus pandemic customers experienced unprecedented challenges which hampered their business severely.
on remuneration as per the People Management Policy of the bank Not applicable. Government announced a series of timely and crucial economic policies and stimulus packages through Bangladesh Bank to mitigate the
and get necessary approval from BoD.
disastrous fallout of COVID-19. As the pandemic-induced shutdown paralyzed the economy impacting all businesses and livelihood, EBL was
Note: Till 2020, People management Policy of EBL does not one of the very first few banks in channeling government stimulus funds to customers. This stimulus fund helped our customers to get back
Number of employees having received a variable remuneration award
have provision of any kind of variable remuneration, deferred to business promptly to limit damages and stopped good loans turning into bad.
during the financial year:
remuneration, severance payment, sign-on awards or other forms
We participated in the following stimulus packages and refinance schemes:
Not applicable of remuneration as mentioned above for its permanent staff.
Stimulus Package EBL’s Contribution
Worker’s Salary Payment of Export Oriented • EBL disbursed BDT 2,706.61 million to about 53,290 workers of 35 Export Oriented
Customers Concerns.
• BB allowed total BDT 9,784.00 million for EBL Clients’ under the package.
Working Capital Loan to Corporate Borrowers
• Up to December 2020, we have disbursed BDT 8,820.39 million to 84 Customers.

• BB allowed total BDT 3,951.70 million for EBL Clients’ under the package.
Working Capital Loan to CMSME Borrowers
• Up to December 2020, we have disbursed BDT 3,062.90 million to 489 Customers.

EDF Refinance to Export Oriented Customers • Total Disbursement up to December 2020 was BDT 27,874.59 million.

130 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 131
 Recovery of Classified and Written-off Loans

Governance Reports
NPL ratio movement: EBL vs. Industry & PCBs
Our approach towards NPL management
12.00%
10.30%
9.69%
10.00%
9.32% Industry overview and status of EBL
9.23% 9.31% • Practicing good governance: To ensure that a loan does not
8.00% 8.79%
go bad and NPL does not accumulate in the first place, good
7.66%
6.00% corporate governance and careful due diligence is followed
4.98% 4.85% 4.60% 5.78%
Default loan has dogged into the country’s banking sector that Special Asset Management team of the Bank played contributory
5.54% in lending decisions.
4.87% 4.66%
4.00% deprives good borrowers to collect required funds at reasonable role to achieve that feat with their all-out effort for recovery of
4.36% 2.69% 2.50%
3.27% 3.35% 2.72% price and halts the overall economy to grow. Banks are losing out classified and written-off loans. Proper follow-up and frequent
2.00% • Robust credit culture: Our sound risk management culture
2.35% revenues and making hefty amount of provision against classified monitoring along with visits are the keys to an effective recovery
backed by prudent underwriting standards, policies and
0.00% loans. However, there was a regulatory forbearance allowed by BB system. Payment deferral facility for borrowers allowed by
2014 2015 2016 2017 2018 2019 2020 procedures helped us bring down the surge of new non-
not to downgrade classification status of any loan during 2020 due Bangladesh Bank has barred bank to collect cash from delinquent
performing loans. Policies, guidelines, strategies and procedures
Industry NPL Ratio PCB NPL Ratio EBL NPL Ratio to the apprehended severity of impact of COVID-19 pandemic on clients during 2020. Economic downturn and payment deferral
are kept updated with frequent assessment in accordance with
the economy. In a commendable continuity of maintaining one of facility due to pandemic caused slower recovery from classified
Source: Bangladesh Bank Publications actual performance and industry best practices.
the lowest NPL in the industry, EBL’s NPL ratio stood at 2.72% at the loans during 2020.
Note: For industry NPL ratio and PCB NPL ratio data prior to December 2020 contains end of 2020 compared to 3.35% in 2019.
• Constant monitoring and regular follow-up: Early risk
information without OBO.
recognition, prompt reporting and proactive risk management
of individual position in the portfolio is performed for
NPL position of EBL immediate attention and remediation. Foresighted strategic Key initiatives in 2020 Status of legal proceedings
action plans on vulnerable and concerning accounts help us
guard against conversion of performing loans into NPLs.
At EBL, we believe in “quality first, revenue will follow”. The • Successfully sold mortgaged properties amounting to BDT We are now looking after 7,624 suits/cases filed against defaulting
intense focus on quality of asset drove the Bank to achieve NPL • Strong recovery system: We give utmost importance to problem
419.87 million by publishing auction notice. borrowers involving an amount of BDT 25,624 million. 18 dedicated
ratio of 2.72% at the end of 2020; which is far below the industry loan recovery. Special Asset Management Division puts all-out
law officers are monitoring the above suit cases as plaintiffs and
average NPL of 7.66% as well as much lower than average NPL efforts to maximize recovery of the problem loans including • Disposed of 80 number of cases in favor of Bank at High
complainants on behalf of the Bank. The above mentioned suits/
of 4.66% in Private Commercial Banks (PCBs). EBL experienced written off loans. Consistent follow-up along with vigorous Court Division and Appellate Division of the Supreme Court of
monitoring through numerous client visits is crucial for our cases are filed and conducted by panel lawyers of the Bank. Legal
a decrease in NPL ratio owing to the relaxation of NPL policy Bangladesh.
during 2020.This demonstrates the excellent stewardship in risk efficient and effective recovery system. Where appropriate unit obtained 415 number of judgments in Artha Rin Suit & Case
management of the Bank. we reschedule classified accounts maintaining regulatory • Obtained 415 number of judgment in favor of the Bank in filed under Negotiable Instruments Act. 371 number of Cases have
guidelines. We frequently communicate with customers who Judge Court against the defaulter borrower of the Bank. been withdrawn after settlement of the account. Moreover, 259 writ
EBL has been on an improvement track since 2014 in terms of are experiencing financial distress. Further, financial and petitions/criminal misc. cases/appeals are pending before the
NPL ratio. A concerted effort of the Business units, Credit Risk advisory assistance is provided as per requirement. • Issued 721 warrant of arrest against defaulting borrowers out
Supreme Court of Bangladesh whereas 80 cases were disposed in
Management, Special Asset Management and Senior Management of which we have executed 199 convictional warrant of arrest
favor of the Bank during 2020.
to keep the loan portfolio healthy and with the effective oversight and recovered BDT 31.6 million.
Way forward
of the Honorable Board of Directors towards sustainable growth
helped EBL to accomplish such a feat. Moody’s, in their recent • We have obtained Certificate under section 33(5) of ARA
against 04 (four) Corporate and 1(one) BCCI accounts. Way forward
review report of EBL has also acknowledged EBL’s track record of • “No compromise on quality” has been and will
good asset quality, superior underwriting process with a focus on continue to be the guiding principle for management
of credit portfolio of the Bank in 2021. • We have obtained certificate under section 33(7) of ARA
high-quality corporates.
against 03 (three) Corporate accounts. • Continuing regular portfolio analysis meeting with
• Management is committed to excel in NPL Business and CRM on monthly basis for improving
management by way of – • Regular meetings with the Bank’s enlisted panel lawyers/ quality of asset portfolio.
Economic Sector wise NPL
• Arresting new NPL flow retainer to know the progress of cases for its speedy disposal.
• Maintain strong liaison/relation with court officials for
12.00% • Reducing NPL to acceptable level speedy disposal of suits/cases filed against defaulting
10.07%
10.00% Recovery status at a glance BDT in million borrowers.
8.35% • Aligning underwriting criteria with the economy and
8.00%
industry position, enhancing credit principles and • Speedy action for vacating stay order from higher
6.00% bringing in innovation in recovery shall be the key 726 court for large accounts.
4.14% Recovery From
4.00% 3.64% priorities for NPL management.
2.45% 2.59% 2.94% Written-off loans 636
1.99% 1.94%
1.41% • Arranging legal workshop for knowledge sharing.
2.00% • Combating NPL is a continuous process and there 423
0.10% 0.13%
0.00% is no room for complacence in improving portfolio
• Prompt settlement of large accounts by setting
Trade & Construction Transport Industry Consumer Agriculture, health. It is the Bank’s strategic intent to uphold its
Commerce financing Fishing
369
priority.
& Forestry downward trend of NPL ratio in the coming years.
Recovery From
2020 2019 Classified loans 947 • Special follow up of accounts having good
700
collaterals for faster decree from court in favor of
Bank towards faster recovery.
0 200 400 600 800 1000
2020 2019 2018

132 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 133
Going Concern and Viability Capital management

Governance Reports
BDT in million

Particulars 2020 2019

Key financial indicators Minimum capital requirement 21,765 20,744
Maintenance of capital 33,144 30,569
Particulars 2020 2019 2018 2017 2016
Surplus 11,379 9,825
Return on average assets 1.22% 1.30% 1.15% 1.04% 1.33%
CRAR 15.23% 14.74%
Return on average equity 15.04% 16.52% 13.83% 11.41% 12.94%
Cost to income ratio 45.58% 43.76% 45.63% 45.20% 44.10% The Bank has been maintaining adequate capital above its regulatory requirement. Minimum capital requirement of the Bank as of 31
Capital to risk weighted assets ratio 15.23% 14.74% 12.16% 14.09% 15.10% December 2020 is BDT 21,765 million whereas EBL maintained BDT 33,144 million that led to CRAR 15.23% of which core capital to RWA is
NPL ratio 2.72% 3.35% 2.35% 2.50% 2.69% 10.78% and supplementary capital to RWA is 4.45% that indicates how efficiently EBL manages its capital and constantly works on it to create
strong capital base and meet up regulatory requirements.
EPS (BDT) 5.05 4.94 4.17 3.26 3.78

Consistency in higher dividend payment

Strong brand image health and safety for its employees which in return increases
Particulars 2020 2019 2018 2017 2016 Bank’s productivity and reduces conflict between employees and
Banking business purely depends on trust. People have entrusted management. Our people truly hold the flagship of the Bank and
Dividends:
us with so many responsibilities. In reciprocity, we have always put they try to provide finest service to our customers that has created
Cash dividend (%) 17.5 15 20 20 20
our best efforts to meet diverse stakeholders’ expectations that’s long lasting bondage. As a part of recognition, EBL has received
Stock dividend (%) 17.5 - 10 - 5 what made us a strong financial service brand in the market. Bangladesh Best Employer Brand Award by the globally renowned
Total (%) 35 15 30 20 25 Our long list of awards and recognitions is a testimony of our Employer Branding Institute.
performance and we have received so many awards and accolades
Protecting interest of the shareholders is the topmost priority of EBL. Therefore, EBL has been quite consistent in terms of paying dividends both from local and international bodies. To name a few, Bank of Credit rating
complying necessary rules and regulations that shows EBL’s long-term vision and firm commitment to its shareholders. the Year 2020 for Bangladesh by The Banker, Leading SME Trade
CRISL has reaffirmed long term rating “AA+” and short-term rating
Bank by ADB, Excellence in Product Innovation, Excellence in
Regulatory compliance to “ST-1” to EBL which is valid up to June 21, 2021. The rating
E-commerce Acquiring Business and Excellence in Cross-Border
indicates fundamentals of the Bank such as good profitability, good
EBL is one of the most compliant banks in the industry. We do business complying applicable laws, rules and regulations. Following key Business from VISA, Best Corporate Award from ICMAB, the most
liquidity, Basel-III compliant capital adequacy (with strong core
ratios set by Bangladesh Bank are properly complied with. Innovative Retail Bank in Bangladesh by International Finance
capital), diversified business portfolio, good non-funded business,
magazine etc. Besides, EBL has been awarded as a 'Superbrand' of
good market image, sound IT infrastructure, experienced top
Ratios Regulatory limit 2020 Status the country for the year 2018-2020 by the Superbrands Bangladesh management etc. Even during the pandemic, the Bank showed its
AD ratio-Bank ≤87% 78.82 % Complied for its outstanding contribution in the banking sector. And, EBL is resilient performance.
also well-accepted by the multi-lateral Institutions such as- DEG,
MCO-DBO ≤16.5% 13.51% Complied
FMO, ADB, IFC, PROPERCO etc. for its proven track record. Excellence in customer service
LCR-DBO ≥100% 210.90% Complied
NSFR-DBO >100% 105.49% Complied We care for our people EBL always thrives for easy going strategies that enable the Bank
Capital market exposure (Solo) ≤25% 22.03% Complied to unlock the best ideas. Our priority is to bring digital perspective
Employees who are satisfied at work come up with higher at process level so that customers can feel more comfortable when
CRAR (Solo) ≥12.5% 15.23% Complied
productivity and provide better customer service. EBL always dealing with the Bank. We take feedback from our customers
Leverage ratio (Solo) ≥3% 5.97% Complied
cares for its employees and creates good work environment so positively with high importance and start working on them so that
that they remain highly satisfied. EBL ensures equal opportunity, customers experience better service. This always helps us create
Good governance structure, governance practices, reporting and compliance of
work life balance, employee engagement, personal development, and maintain strong bonding with our customers.
corporate governance, communication with stakeholders. Since
Board of Directors remain at the heart of the governance structure inception of the award in 2013, EBL is one of the most awarded
of the company which is the key to sustainable growth. Hence, financial institutions in the category.
Board of Directors of EBL plays a pivotal role in shaping governance To sum up, there is no significant doubt upon the Bank’s ability to continue as a going concern. EBL has neither intention nor the need
structure and practices through their choice of strategy and to liquidate or curtail materially the scale of its operations. Hence, the financial statements of the Bank have been prepared as per going
Data security
leadership to drive the Bank to growth path. The management of EBL concern basis and the Bank will continue to operate for the foreseeable future.
as an extended wing of the Board executes policies and procedures To protect valuable data from external threats, we have put several
set by the Board for the greater interest of shareholders and other preventive controls in place. Besides, we have achieved PCI-DSS
stakeholders. Our well-functioning Board of Directors provides certification for consecutive five years in recognition of our constant
appropriate support to our CEO and his team with the foresight effort to minimize vulnerabilities in cardholder data domain,
and seasoned judgments to carry the business on the right track which provides our customers with a peace of mind reliability for
even in a pandemic situation. Hence, our continuous effort to adopt using our payment cards. Our achievement of ISO/IEC 27001:2013
and adapt to international best practices in corporate governance certification for the second time in a row recognizes our compliance
has been recognized by Institute of Chartered Secretaries of with Information Security Management Systems (ISMS), a risk
Bangladesh (ICSB) based on Board effectiveness, governance management framework developed jointly by ISO and IEC.

134 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 135
 SUSTAINA Sustainability Report

Sustainability Report
Foreword

Banking has experienced a phenomenal shift from its traditional banks in channeling government stimulus fund to customers to

BILITY
form of operation to a completely new strategic dimension help restart, minimize impairment and bounce back.

SUSTAINABILITY
referred to as Sustainable Banking which means integration of
environmental, social and governance criteria into the business or Financial results are a function of commercial success, and
investment decisions for continuing benefits of both clients and the commercial success depends on delivering superior value to
society as a whole. customers, being an attractive workplace and contributing to
societal progress. To ensure that we keep this balanced focus, we
EBL has always been a pioneer in adopting the best practices to have concrete ambitions and focus areas. These ambitions cover

REPORT
set examples among other banks and financial institutes of the customer satisfaction, digital advancement, product innovation,
country. At EBL, sustainability means more than just operating employee engagement and financial results etc.
responsibly or complying with regulatory requirements. It means
having a positive and long lasting impact on the surrounding In 2020, EBL made significant progress towards achieving UN
Sustainable Development Goals. We promoted financial inclusions

REPORT
community and to all the stakeholders. For over 29 years, EBL has
striven to strengthen the country’s financial eco system and is through 29 agent and 5 sub-branch outlets, and contributed
strongly interlinked with Bangladesh’s growth story. Bangladesh towards women and student banking by arranging a number of
is included among 25 countries in the world that have launched webinars on education, gender equality, health and social issues
national policies, guidelines, principles, or roadmaps focused on and developing low cost products for women entrepreneurs. We
sustainable banking. also have 4 designated student centers to provide customized
banking solutions for students pursuing higher education abroad.
Since inception as a scheduled private commercial bank in
1992, Eastern Bank Limited has been creating opportunities for In addition to our investment in higher education, EBL also
individuals, businesses and contributed for the sustainability of the contributes to a wide range of local initiatives in areas such as
society of which it is a part. EBL aims to go beyond profitability. EBL early childhood education, entrepreneurship, financial literacy,
believes every business must have a social purpose along with a art and culture in the communities where we operate. EBL’s small
commercial one. We cannot make profit ignoring economic, social credit program supports some of the most underprivileged social
and environmental aspects of the society where we operate. We groups by doing what banks do best: funding businesses, no matter
aspire to promote ethical businesses to help people and the society how small they might be. Our endeavor to finance agricultural
as a part of our corporate social responsibility and a platform and rural developments, micro and small enterprises and women
toward attaining sustainable development of the economy. empowerment will continue with priority.

Today, technology is enabling us to fulfill our purpose at ever Again as a leading commercial bank, EBL is continuously funding
greater scale. The adoption of smartphones and digital platforms projects that are eco-friendly and have desire to become energy
are driving changes in customer’s preferences. Every day, we efficient. We have integrated Environment and Social Risk
are discovering new ways to engage with each other and with Management System to analyze the environmental and social
businesses. risks of projects and promote financing for renewable energy and
projects to support the fight against climate change.
As 2020 was not normal by any means, we tried our best to protect
our employees and customers against COVID-19 pandemic.
At EBL, we want to be profitable as well as sustainable. This way we
EBL took some strict precautionary initiatives and followed the
can help more people and businesses can prosper. We will continue
instructions given by Government and World Health Organization.
to work every day to make EBL the best retail and commercial bank
Maintaining social distancing at work place, working from home,
for our employees, customers, shareholders and communities.
reduced office hour, use of hand sanitizer, temperature monitoring,
use of gloves and masks, disinfecting office premises are some of
the steps taken by EBL throughout the year.

EBL has also engaged with industry peers and worked closely
with related regulators including Bangladesh Bank in shaping M. Khurshed Alam
policy reforms/responses appropriate with market realities and Chairperson
difficulties during the COVID-19 period. EBL is one of the first few Sustainable Finance Committee

136 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 137
 Sustainable banking policy defines the Bank’s general sustainable environmental risk management for the Bank’s lending activities

Sustainability Report
Sustainability: An overview banking principles, and its voluntary commitments to its main involving sensitive sectors and business activities. Green office
stakeholders, through principles and commitments focused guideline explains the Bank’s commitment to, and action in,
on creation of lasting value. This policy also refers to social and combating climate change.
Sustainable Banking means providing socially and environmentally gets involved in financing projects. As a leading commercial bank
responsible products and services that will have long term in Bangladesh, EBL has made sustainability as its integral part of
positive impact to financial organizations and community as a Key highlights of 2020
day-to-day work, and is continuously improving the environmental
whole. Financial institutions unwilling to follow the path towards
and social performance of operations, which we commonly refer
sustainability will lose competitiveness.
to as our corporate footprint. The sustainability strategy articulates EBL’s COVID-19 response with correspondent banks, customers within and outside country
A financial institute involves in environmental and social issues of EBL’s strategic commitment to sustainable development which we were temporarily suspended in 2020. We reached them through
a community from the moment it acts as financial intermediary and consider one of the vital parts towards risk management. 2020 was the year of COVID pandemic. The whole world has phone and video calls.
suffered of this virus and continues to do so. In order to protect
the people, the government of Bangladesh declared "lockdown" in We encouraged our customers to use our digital platforms to meet
Long Term Investment a form of general public holiday across the nation from 23 March their daily financial needs without physically visiting any branch.
Quality over Quantity to 30 May and prepared some necessary steps to spread awareness Our internet based products are much more active now. We are
EBL focuses on long term Inclusion of Env. & Social risk analysis of COVID-19 pandemic. As a bank we also did our best to ensure regularly reaching our customers to use these online products and
investment rather than short Sustainable development is a
Sustainability our employees and customers stay safe and healthy. EBL took also educating them about their usages on regular basis.
term profit. That includes projection into the future and In short term inclusion of some strict precautionary initiatives to ensure social distancing.
financial inclusion, digital EBL focuses on increasing the environmental and social risk We have also engaged with industry peers and worked closely
Sustainablity is a process that We strictly followed the instructions given by the Government and
advancement and service value of good portfolio. analysis will lead to increase with related regulators including Bangladesh Bank in shaping
EBL is following for years. world health organization. Majority of us were working from home
excellence. costs but in the long run these from April to July. Only few branches and departments were open. policy reforms/responses appropriate with market realities and
EBL is committed towards the
eco-efficient portfolio will economy, environment and Office hours was reduced as per Bangladesh Bank guideline and difficulties during the COVID period. EBL was one of the few initial
bring sustainability. society. As a financial institute employees were working on rotation. banks in channeling government stimulus funds to customers to
EBL is determined to become help minimize damage, restart, and bounce back.
example of sustainability for Sufficient safety measures were taken for employees. Use of
sanitizer has been made mandatory. Hand sanitizers have been 8R approach to sustainability
other financial institutes.
placed in numerous corners of the Bank. Body temperature of
In this constantly changing business environment, we pursue
employees are screened every day to make sure no one enters
At EBL we believe that any growth should meet the requirement of today’s generation, without hampering future generations’ ability to meet efficient cost management, promote consistent productivity gains
office with fever or other symptoms. Use of gloves and masks is
their own necessities. We are committed to ensure ethical, social and environmental criteria that are diligently followed when conducting through seamless coordination between business functions, and
must for most employees based on their operation type. Bank is
business and making business decisions. focus our attention on widening our banking horizon to deliver
running regular disinfection process in all its offices in regular
sustainable growth. We followed 8R approach also in 2020 as we
intervals. Any sort of foreign tour, training, conference, meeting
Sustainability governance did in 2019 in terms of sustainability and will continue in the future.

EBL is one of the pioneers in the banking sector in Bangladesh to EBL has a Sustainable Finance Committee (SFC) chaired by a 01. Refuse 05. Responsibility
adopt international best practices in corporate social responsibility Deputy Managing Director (DMD) and comprises the heads of Refuse to do business with
Selecting good borrower &
and good governance. Our aim is to take a leadership position different divisions and corporate areas of the Bank concerned clients who are damaging
empowering employees.
in sustainable finance. The rules and regulations of the Board of with sustainability. This Committee meets at least once a quarter
environment.
01 02
Directors are stipulated in relation to sustainability which are: and proposes, coordinates and promotes the Bank’s sustainability
initiatives. Credit Risk Management (CRM) team also assesses
• The Board of Directors; on all matters except those reserved the reputational risk stemming from any financial transaction 02. Reduce 06. Respond
for the annual general meeting, is the only body authorized with a social or environmental impact, which issues non- Reducing unnecessary energy
Brought down our response

03
08
to approve general policies and strategies, especially those consumption
binding recommendations to the relevant decision-making body. time from 0-5 days to 0-4 days.
(Electricity, fuel, water)
relating to sustainability. Subsequent to business units and credit risks as a third line of
defense, internal audit team performs regular evaluations of the
• The Board of Directors also oversees the corporate social
implementation of Environmental & Social Risk Management
responsibility policy, ensuring its compliance and its aim to
create value for the Bank.
(ESRM) system, sustainable banking and green office guideline. 03. Reuse 07. Renew

07
Our corporate culture includes six core values which creates an

04
Reuse of paper, different Use of renewable
essence of corporate governance and sustainable development. printed stationary items. energy in HO.

06
04. Recycle
05 08. Refine
Recycled water used in Refining Processes to increase
Service Excellence Openness Trust Commitment Integrity Responsible washroom efficiency & productivity
corporate citizen

138 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 139
Financial inclusion and diversity

Sustainability Report
We empowered local people through SME loans, agricultural and have been providing best banking services and solutions in
Sustainability at EBL
rural credits and women banking where maximum customer the urban section; now looking for development of the rural and
facility is provided through knowledge development, customized underdeveloped people of the country. Economic Sustainability Environmental Sustainability Social Sustainability
products and arranging training for women entrepreneurs. We

29 Agent banking outlets

& 5 Sub-branch outlets New Generation Banking
for rural & remotely through internet & apps.
populated communities,
mainly SME clients.

nt & Digi
Age ranch t
Bank al
- b ing
Sub nking
Ba
Economic sustainability
85 branches &
e-KYC based bank

Inn anking
Ban onal

200+ ATMs for all

B
king

account, DPS, FD

ova
time customer
iti

from home etc.

Trad

ting
support.
Employee remuneration

EBL has 1896 permanent employees; 48.3% are with EBL for less than 5 years, 28% are for 5 -10
BDT 3,949.92 million in staff costs
years, 15.5% are for 10-15 years and 8.2% are for over 15 years.
Digital banking and automation to save time and resources
Loans granted (net) to SME- Small businesses

BDT 10,739.80 million in loans provided at The Bank has disbursed BDT 10,739.80 million loans to Small businesses in which BDT 1,577.60
year-end million is disbursed in rural area.

Shareholders

BDT 2,841 million recommended as

Recommended 17.5% cash dividend and 17.5% stock dividend per share.
dividend

Taxes withheld and paid

BDT 3,880 million in taxes and other levies EBL contributes both economically and socially to the country by paying withholding taxes and
withheld and paid other levies from third parties.

Social investment in the community

BDT 183.22 million in social investment in BDT 183.22 million in community support program. 13 MFIs are linked with EBL to mobilize
the community agricultural loan.
From EBL 365 to DROPBOX to SKYBANKING to EBL DIA to EBL
SKYPAY, EBL has been able to adopt the digital transformation of the
banking industry. EBL has been the pioneer for providing unique Internet Financial inclusion & indirect economic impact 2020 2019
EBL DIA
digital services for its customers. EBL is determined to engage its Banking
Cumulative agricultural and rural credit extended through MFIs (BDT in million) 5,294.40 4,328.91
customers more in digital channels by offering unique services
and increasing customer convenience. In 2020, EBL has done Cumulative agricultural credit extended through own network (BDT in million) 10.80 16.80
outstanding work in digital banking to introduce EBL Self Service Cumulative agricultural and rural credit extended from ADB fund (BDT in million) 2064.12 1,685
Hub to open FD and DPS from Home. During this challenging times
we are constantly in touch with our customers through social media Total number of individuals impacted through agricultural and rural credit 115,270 111,265
EBL
channels, providing innovative solutions through our banking app, e-KYC
Connect Total number of MFIs partnered for agricultural and rural credit disbursement 13 13
banking through Chabot, introducing QR Payment solution to make
contactless payments, e-KYC based bank account, VISA Inward
Remittance, balance certificate automation, collection gateway
through ‘EBL Connect’ and providing export factoring solution as
part of our efforts to offer customer support in every possible way.
EBL SKY EBL
EBL started its e-KYC based Insta account project in 2020, which Banking SKYPAY
has been introduced in January 2021. Now customers can easily
open their account from their home without coming to branches.

140 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 141
 practices –all these have been mainstay of our banking endeavors. employees to use plastic water bottles. We are not using any plastic

Sustainability Report
Promoting sustainable finance 2020 2019
From 2020, EBL has decided to minimize the use of plastic. The bottles at any official program. Also we are now using paper folders
Financed for installation of ETP to plants in operations (BDT in million) - -
initial action for making plastic free EBL was to discourage all EBL instead of plastic folder for documentation purpose.
Financed in plants having ETP (loan disbursed to projects having ETP) (BDT in million) 36.63 769.46
Financed to solar panel/ renewable energy plants (BDT in million) - - Resource utilization 2020 2019
Financed to Bio-fertilizer plants (BDT in million) - - Cost of water consumed by the bank (BDT in million) 2.98 4.38
Financed to brick kilns adopted cleaner technology (BDT in million) 186.44 129.12 Cost of paper consumed by the bank (BDT in million) 1.95 2.38
Financed to other green projects (BDT in million) 1,011.27 1,458.49 Cost of energy (electricity, fuel, and gas) consumed by the bank (BDT in Million) 102.68 142
Total sustainable finance (BDT in million) 1,234.34 2,357.07
Number of employees trained in sustainable finance 217 209
Climate change & carbon footprint

BDT in million Climate change has become a global concern as it has direct impact
on biodiversity, agriculture, forestry, dry land, water resources and
Financial assistance received from government 2020 2019
human health. People across the world now admit that Bangladesh
Borrowing from Bangladesh Bank under different Refinance programs (as of 31 December) 18,523.72 16,752.10
is one of the major victims of climate change. Banks, like all other
Interest loss compensation received from Bangladesh Bank against disbursements in specified agricultural products @ 4% 0.00 0.03
companies, produce greenhouse gases (GHG) directly or indirectly
BDT in million (through financing of clients and projects that generate GHG gases)
from their activities.
Contribution to national exchequer 2020 2019
Income Tax 6,511 4,365 As a corporate citizen and environmentally-responsible financier,
Green finance loan outstanding (as on 31.12.2020)
EBL provides green loan not only to help to save the environment
VAT 599 597
Other duties & Taxes 352 234
but also for a sustainable economic growth. BDT 3,025.6 million

Social sustainability
Environmental sustainability

Women and student banking to promote gender equality

To achieve long-term sustainable development, we must • All our lending proposals are factored against E&S risks where and education
responsibly manage environmental and social (E&S) risks. Rapid appropriate.
EBL Women Banking is EBL’s courtesy towards all its women
urbanization and industrialization help to improve the livelihood
• All lending proposals take into account relevant local laws and customers with a bundle of women specific products, services
of the human beings. Simultaneously, it creates strain on natural
regulations and internationally acceptable environmental and and proposition. EBL introduced “EBL Ovilashi” account for
resources, such as energy, water and food supplies. Our planet’s
social standards whichever is more stringent. women entrepreneurs which is a non-individual interest bearing
ability to meet the growing demand of urbanites may be depleted
• Risks associated with both environmental and social issues are current account, simply a one stop solution to fulfill the dreams of
if we don’t become environment-conscious. In 2013, we introduced
being properly recognized, evaluated and where appropriate entrepreneurs. It empowers an aspiring female leader to turn her
certain procedures and templates to assess our E&S Risk which
mitigated. dream into reality. EBL Women Banking provides competitive
has been further improved in 2018. As a continuous process, E&S
installment options to country’s highest collateral free business
structure being updated to cope with different problems and get the • Business ensures that appropriate procedures are designed to
loan, EBL has designed and promoted everything for women centric
best output in terms of good lending. meet these policy requirements e.g. project finance proposals
business transformation.
are assessed in accordance with the IFC performance Standard.
In 2020, EBL Women Banking also arranged webinar on ‘One Stop
Protecting environment 2020 2019
Solution for Fulfilling the Dreams of Women Entrepreneurs’ and
Number of customers eligible for Environmental Due Diligence 179 194 'Combating Cyberbullying against Women' to create social awareness
Number of customers appraised for Environmental Risk Rating 179 194 and build women leaders.
Low 143 143
For promoting education, EBL has taken numerous initiatives such
Moderate 29 45
as providing account facility to school, college and university-going
High 7 6 students. EBL has Child Future Plan which is a unique recurring deposit
Installed capacity of solar energy to run bank premises and ATMs (in Kilowatt) 16 16 protection scheme (DPS) which helps parents to save for their child's
Percentage of Bank branches connected online 100% 100% future. This savings can be used for higher education, marriage or
meeting any special needs of children in the future.
Power, water and other resources consumption management
EBL Student File Service is aimed at providing customized banking
EBL believes that every small ‘GREEN’ step taken today would go renewable energy or simply suggests our employees switch their solutions to students going abroad for higher education. Any student
a long way in building a greener future and that each one of us lights off after office hours, use daylight instead of electrical lights, pursuing higher studies needs to legally send fund abroad for tuition
can work towards a better global environment. Through proper turn off all air-conditioned after 7 pm, turn off half of AC after 4 pm fees and living expenses. EBL Student File makes it very convenient for
planning and management, EBL has ensured minimal wastage (transaction hour) going towards paperless office work, managing them to send fund abroad as we maintain separate files for each student
of natural resource. Whether we finance business that invests in water consumption, planting trees and encouraging green while keeping record of all the information till completion of the course.

142 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 143
 Years of service with EBL In 2020 EBL arranged several FB Live learning sessions for general

Sustainability Report
Women empowerment & student loans 2020 2019
(Permanent staff only) public on ‘How Parents Can Support Their Child’s Learning’,
Women Loans disbursed (BDT in Million)
59 0.66 962.47 ‘Language Skills for Students’ and ‘How to Improve Your IELTS
(Small Segment only) 100%
7.45 8.18
Band Score’ in collaboration with British Council.
No. of women entrepreneur received 12.47 15.45
370 201 80%
loans (Small Segment only) Employee benefits & remuneration policies
29.07 28.06
Student Loans disbursed (BDT in Million) 4.28 11.81 60%
We have a comprehensive remuneration system based on our HR
No. of student received loans 3 5
40% policy. It combines a fixed salary that reflects the individual’s role
51.00 48.31 and level of responsibility along with other benefits. In addition,
Employees 20%
the Bank also offers provident fund, gratuity, staff loan and other
Quality of working relationships, healthy work life balance, 0% benefits such as banking products and services and medical
recognition of the performers, and continuous investment in people 2019 2020 benefits for employees and dependents.
differentiates EBL as an ‘Employer of Choice’. If employees feel proud Less than 5 years 5 - 10 years 10 - 15 years Over 15 years
Diversity and equal opportunity
of belonging to EBL and are more committed, they will be able to earn
the lasting loyalty of our customers. Combating money laundering and countering terrorism financing
Diversity and equal opportunity are the key driving force in terms
Employer of choice 2020 2019 of employment. People with diversified knowledge help the Bank to EBL has a system to prevent money laundering and the financing
Employee by Gender(%)
Percentage of voluntary attrition 9.20% 11% do sustainable banking and create an atmosphere which promotes of terrorism. The system is kept constantly in line with the latest
100% innovation. EBL is also women friendly Bank for employees as international regulations and is able to adapt to new techniques
Percentage of growth in total headcounts -2.69% -0.16%
19.98 20.24 well as for its customers. Many women are leading different used by APG (Asia Pacific Group on Money Laundering). It has also
80% Number of fresh graduates recruited as departments and creating long lasting values. EBL employees a corporate framework in place for this purpose, establishing the
- 46
Management Trainee share the corporate culture focusing on fulfillment of its purpose, basic guiding principles and policies concerning this matter.
60% Number of fresh graduates recruited as helping people and businesses prosper, and consistently doing
- 27 things in a simple, personal and fair way. Combating money laundering and
Probationary Officer 2020 2019
40% 80.02 79.76 countering terrorism financing
Number of fresh graduates recruited in Community investment
20 12 Number of Suspicious Transactions
20% other positions
EBL also contributes to economic and social development through reported to Bangladesh Financial 103 66
No. of Fire wardens 143 193
0%
initiatives and programs that support the community. At EBL, we Intelligence Unit (BFIU)
2019 2020 believe that the most rewarding investment is investing for the Number of accounts closed for
Training and education society. We believe in creating long-lasting value for our clientele, 12 103
Male Female unsatisfactory KYC
shareholders, and employees and above all for the community we
Green Banking training is mandatory for all newly joined staffs No. of Incidents of non-compliance with
Headcount operate in. A detailed report on CSR has been presented separately - -
in EBL. For our corporate relationship managers to have in-depth regulations resulting in fine or penalty
in the annual report.
3500 3128 3044 understanding on Green Finance, we have introduced ‘Sustainable Number of staffs completed training on
3000 Finance Training’ since 2013. In 2020, a total of 217 staffs have 1,541 1,852
attended these trainings which was 209 in 2019. BDT 141.32 million in CSR in 2019 AML
2500
1892 1896 How we value our customers
2000 Training & development 2020 2019 BDT 183.22 million in CSR in 2020
1500 Permanent staffs received training To the EBL crew, customers are the cause of existence, never just a
4,078 11,352 Throughout the pandemic year, EBL has taken numerous online queue in the bank counter. Recognizing ‘customer satisfaction’ as
1000 (Employee*number of training)
initiatives to create awareness, provide guidance on number of a journey not destination, EBL is determined to serve its customers’
500 Total number of training days 6,539 14,327 social and healthcare issues. We believe it’s our moral responsibility needs by offering innovative but useful financial products and
0 to give social support and create awareness. In 2020, EBL arranged services, while maintaining good relationships with them as
2019 2020 Average training days per employee 2 6
FB live session on ‘Online Health Talk on Breast cancer Awareness’ trusted partner. To do so, the Bank has developed working systems,
Headcount (Permanent & contractual staff) Number of employees trained in and ‘EBL Talk: Healthcare for the Elderly during Pandemic’.
217 209 applied modern technology, and made available knowledgeable
Headcount (Permanent staff only) sustainable finance
and skilled people so as to ensure that customers receive the
best possible service. The Bank continually expands its network
of branches, ATMs, Dropbox, Cash Recycling Machine (CRM) and
business centers nationwide, protects confidentiality of customer’s
information, and manages and duly rectifies complaints.

Digital transformation

In Bangladesh, EBL is one of the leading benefactors of digital

banking services to its customers. The Bank had started its digital
services back in 2007 through internet banking. In last 14 years,
we have developed fast and user friendly digital services for
customers such as EBL 365, DROPBOX, SKYBANKING app, EBL DIA,
EBL SKYPAY etc.

144 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 145
 Sustainability Report
Excellence in customer service 2020 2019
45% Number of average customers* 671,987 609,367
Number of complaints received through
1,897 803
87% all channels
Number of complaints resolved (in
100% 100%
36% percentage)
Complaints per 1000 customers 2.82 1.32
% of total customers using Internet & SkyBanking Usual turnaround time to resolve any
% of total customers using SMS banking 0-3 days 0-3 days
complaint
% of total accounts statements delivered through email EBL collaborates with many Promotes higher education to EBL promotes an open attitude EBL endeavors to attract and
Total number of complaints regarding
social institutions to create help prosper the communities towards diversity, as a basic retain the best talent and
breaches of customer privacy and losses 0 0
Financial system of the entire world is changing very quickly. awareness and provide in which it is present. principle of its actions to wants its professionals to be
of customer data
This is also true for Bangladesh’s banking industry as most of the guidance regarding different ensure non-discrimination. motivated, committed and
financial transactions will take place digitally in near future. EBL is *Simple average of number of customers at the beginning and end health issues for improving the rewarded.
ready for the transformation. of the year quality of life of people.

Service excellence & customer satisfaction EBL is improving its customer relationship model every year with
EBL has a system to prevent money laundering and the financing the aim of offering the finest products and services as and when
of terrorism. The system is kept constantly in line with the latest they need them, while enhancing the customer experience with
international regulations and is able to adapt to new techniques the Bank. EBL is following the “Segment of One” approach for its
used by APG (Asia Pacific Group on Money Laundering). It has also customers by treating every customer as an individual segment
a corporate framework in place for this purpose, establishing the and providing him/her customized and personalized services
basic guiding principles and policies concerning this matter. according to the need.

Our move towards SDGs EBL promotes financial EBL helps people and EBL promotes sustainable EBL analyses the social and
inclusion within communities businesses to prosper in order lifestyle to preserve country’s environmental risks in its
and drives training, enterprise to support the sustainable natural resources. transactions and promotes
and job creation. growth of communities. financing for renewable energy
and projects to support the
fight against climate change.

Way forward

• Adapt to increased digital banking demands, the need for faster decision making and a constant requirement to break up and
rebuild are key to success in this pandemic time.
• Redeploy and reskill the institution’s workforce.
• Learning and sharing knowledge across the Bank to grow together.
• Inclusion and diversify principles to have a holistic business mindset and aptitude.

The UN Sustainable Development Goals, adhered by more than 190 countries, identified 17 key global issues. Bangladesh is one of the
signatories of this. EBL is in a process of managing relationships with stakeholders in the context of the world’s foremost sustainability
challenges and committed towards these goals and is helping to achieve them through its business activities and community investment
program.

146 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 147
 CORPORATE Corporate Social Responsibility

Corporate Social Responsibility

Our responsibility to our Society necessary to ensure transparency of our investments. Our CSR
policy clearly outlines our engagement strategy.
As a responsible corporate citizen, we understand the need to

CORPORATE
invest in the society we operate in for bringing about changes and • We take utmost care to ensure that the CSR allocations do not

SOCIAL RESP
impacting lives positively. Our corporate social responsibility (CSR) end up financing militancy and terrorism.
is a reflection of our commitment to our society and we put in our
best efforts in living according to the values we wholeheartedly • Our CSR engagement programs are mostly in the area of
believe in. Our attempt has always been to make a positive impact disaster management, emergency relief, education and
in everything that we do. healthcare.

SOCIAL
We always strive to live up to the principles of the United Nations • Our aim is to spend 40% of our fund for awarding scholarships
Global Compact as this is globally recognized cornerstones of for underprivileged but meritorious students from
corporate social responsibility. We also firmly believe that renowned educational institutions and 25% to healthcare for
without a principled approach to business, sustainability cannot underprivileged population of the society.
be ensured.
• We strongly feel that sports, arts and culture are key

RESPONSIBILITY
Corporate citizenship strategy components for a healthy and sustainable society. We,
therefore, have committed 10% of our CSR allocations to the

ONSIBILITY
We apply the same corporate governance standards to our corporate development of sports and arts and culture of the country.
citizenship programs as we do to our business dealings. For us,
good governance is a basis of our strategy. • The remainder 25% of the CSR budgetary allocation is for
emergency disaster relief, upgrading facilities and lifesaving
All project proposals relating to CSR are evaluated based on a equipment in emergency rescue services like the fire
standardized governance framework and scorecard. We have brigades etc., infrastructure improvement for disadvantaged
a Board approved CSR policy framework and we do everything communities of far-flung areas.

Our major CSR activity areas

Education Healthcare Sports Art and culture Emergency Disaster relief

Education: Key to social and economic development

We believe education is a great leveler and also a great way to Scholarship for students of University of Dhaka
raise aspirations in the society and instil inspiration to achieve
greater heights in life. In this globalized and knowledge-based To reach out to meritorious and disadvantaged students of the
world, education is a key to address humanity’s major challenges. University of Dhaka, we began a fruitful partnership with Dhaka
Our major CSR activity involves in tertiary education because we University Alumni Association (DUAA) in 2007. We are proud
believe that it is where youths are prepared for entering into the job of this collaboration. We began by offering a minimum of four
market. For the economic development, our society needs skilled scholarships to each of the 74 departments of University of Dhaka
workforce and people who embrace critical thinking. Education is helping the meritorious but disadvantaged young people to pursue
also crucial to social cohesion, because it enables people from a higher education and grow as skilled workforce.
disadvantaged background to earn an income that can provide a
better quality of life and inspire future generation. On the 10th year of our scholarship program, we almost doubled
the scholarship amount from BDT 2.30 million to BDT 4.5 million.
As a responsive corporate citizen, we have anchored our CSR In 2020 we continued giving this BDT 4.5 million to 150 deserving
initiatives on education. Our initiative is based on two pillars: students and each to get BDT 30,000. DUAA works closely with
strengthening youth confidence by raising aspirations and all the departments of University of Dhaka for the selection of the
providing pathways to education and employment opportunities. scholarship award.

148 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 149
Promoting education and research on banking Contribution to national exchequer • Various bundler offers discount to make women’s travelling

Corporate Social Responsibility

more exciting and secured at Travel Art
Like previous year, we have donated BDT 3.75 million to BIBM Being a responsible and tax abiding corporate citizen, EBL regularly
• Exclusive Discount at Gala Makeover Studio & Salon’s
for the development of proposed 15-story RCC Building of BIBM pays corporate tax on time, sometimes even before it falls due.
Gulshan-1 outlet
in the year of 2020 to promote education, training, research and We also deposit withheld tax and VAT to govt. exchequer on time
consultancy on banking and finance. deducted from employees’ salary as well as payment to customers
and vendors. Following graph shows our contribution:
Contribution to Proyash for supporting special child student
BDT in million
We believe in holistic development of the society. Education will
favor the integration of a special child into society. Proyash is a
specialized organization that helps all children with special 3,582
Corporate Tax
1,683
educational needs through multidimensional programs. As part of
our commitment towards the society the Bank has contributed to 2,929
Withholding tax
2,683
Proyash for bearing the expense of a special child student.
Ali Reza Iftekhar, MD & CEO of EBL handing over blankets to Md. Shafiqul Islam, Signing with Meeha.com.bd
Commissioner of Dhaka Metropolitan Police (DMP) for the cold-hit people of 599
Promoting human welfare Chuadanga.
Value added tax (VAT)
597
Publishing entrepreneurial booklet for women entrepreneurs
We always feel that our responsibility towards the society is not Exercise duty on 352
Other social affiliations loans & deposits 234
limited to banking only. As a responsible corporate citizen, we set EBL Women Banking has introduced an entrepreneurial booklet
up a team from our colleagues to visit and understand the need In 2020 EBL donated in Care In Need Foundation which provides exclusively covering different day to day business management
2020 2019
of the moment of the cold affected victims to different districts of home care service to assist senior individuals and families, issues in detail for entrepreneurs. It also covers issues like
the country. Bangladesh Disabled Development Trust, Omar Ekushe Boimela at inventory management, addressing online customer’s need,
Encouraging women empowerment keeping transaction details, preparing a business loan request etc.
Chattogram City Corporation as part of social engagement activities.
Donating blankets to Prime Minister’s Relief fund
As a great believer of women empowerment, we have designed
Disaster management some special products for women entrepreneurs at special
We were quick to respond to the need of the sufferings of humanity
and donate 75,000 pieces of blankets to the Prime Minister’s Relief discounted loan pricing to provide growth support. Women clients
Our corporate values tell us to stand by the people in need and
and Welfare Fund as part of CSR activities. can avail EBL Mukti loan up to BDT 25 Lac without any collateral
reaching out to them in crisis. The society we belong to and operate
and up to BDT 50 lac with collateral. EBL also guides women
is the place where all our responsibilities lie. We have always come
clients on various business issues such as financial record
forward with support.
keeping/accounting, sales routing through bank account, trade
Emergency relief for flood affected people license, taxation, marketing, insurance etc. Moreover every year
we celebrate International Women’s Day to celebrate womanhood
As part of emergency response, EBL donated BDT 10 crore to the while calling for greater equality.
Prime Minister's Relief and Welfare Fund for flood affected regions
in Bangladesh.

EBL Women Banking entrepreneurial booklet Avwg bvix, Avwg mdj

Partnering with Robi 10 Minute School to create training platform

Md. Showkat Ali Chowdhury, Chairman of EBL hands over blankets to the Prime for women entrepreneurs
Minister’s Relief and Welfare Fund. EBL Celebrates Womanhood at Head Office on 8th March, 2020
As a part of EBL Women Banking’s plan to four dimensional effective
Providing warmth to cold-hit people To make our women cardholders’ journey more fascinating EBL training platform, Robi 10 Minute School has been on board to
Women Banking successfully completed four MoU signing with introduce first of its kind, EBL Women Banking Entrepreneurship
For providing comfort to the disadvantaged people of the society
Tactical Krav Maga, Meeha.com.bd, Travel Art and Gala Makeover Series with a purpose to promote entrepreneurship exclusively.
EBL donated 9,000 pieces of blankets among cold-hit people in
Studio & Salon.
Bogura. EBL employees contributed 1,000 pieces of blankets to the Md. Showkat Ali Chowdhury, Chairman of EBL hands over a cheque to the Prime Its 3 segments will make sure entrepreneur’s zeal, find less barrier
cold-hit people of Chuadanga. Minister’s Relief and Welfare Fund for the flood affected regions in Bangladesh. • Discounts on different specially designed self-defense courses when they come to business management and digital promotion.
at Tactical Krav Maga • Business management,
• Exclusive EMI or Cash Based Installment service in different • Entrepreneurship know-how and
reliable and renowned scooter brands at Meeha.com.bd • Digital marketing

150 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 151
 based Violence campaign. AMIOBOLI.COM is a digital safe space to Celebrating Mujib Borsho

Corporate Social Responsibility

share stories of gender-based violence. Anonymous testimonies
are gathered on the LOUD WALL - an uproar against the violence To pay rich tributes and to celebrate As the nation joined the celebration with verve and energy, we as
and the culture of shame that keeps victims quiet and perpetrators the birth centenary of father of a development growth partner of the country paid our respect and
safe. This platform aims to bring organizations, organizers and the nation Bangabandhu Sheikh expressed our love for our father of the nation by donating BDT
activists together to create dialogue around the issue. 100 million to Bangabandhu Memorial Trust to be a part of this
Mujibur Rahman, government
declared the year 2020-21 as the grand celebration.
Environment friendly bank
Mujib Year. The celebrations
In 2020, government initiated various programs to be held during
Go Green of ‘Mujib Borsho’ kicked off in a
Mujib Borsho starting from 17 March 2020 to 26 March 2021.
subdued tone because the COVID-19 pandemic, but there was
Signing with Robi 10 Minute School
Later, government extended Mujib Borsho till 16 December 2021
We believe that every small ‘GREEN’ step taken today would go no dearth of emotional tributes to the father of the nation of
due to the ongoing COVID-19 pandemic. The countdown for the
a long way in building a greener future. As an environment- Bangladesh. On the 100th birth anniversary on 17 March 2020,
Introducing Digital Banking Coach-Women entrepreneurship celebrations started on 10 January, coinciding with Bangabandhu’s
responsive bank, we initiated Go Green campaign in our Bank. nation remembered the architect of independent Bangladesh with
homecoming in 1972 from a Pakistan jail after the 1971 Liberation
EBL Women Banking introduced Digital Business Coach- After reducing the use of electricity and paper at the office, EBL solemn respect and watched the roll out of year-long program War. The year-long countrywide celebrations went off on 17 March
Women Entrepreneurship for aspiring women entrepreneurs. is now gearing up for carbon trading to show its commitment to nationally and globally. through stunning fireworks display at the Suhrawardy Udyan in
Comprehensive and concise, the Digital Business Coach is a first environment-friendly funding. Some of our branches and ATMs of
Dhaka. However, the programs planned on this occasion was first
in Bangladesh. The 18-part two-hour video series is for women the Bank are now running with solar power.
scaled down and gradually postponed, owing to the worsening
who wants to build their own business and also for aspiring Collaboration with CGS for tree plantation coronavirus crisis.
women entrepreneurs who would like to build a better future. This
comprehensive digital training focuses on three broad areas: As part of our environment-friendly initiatives we have collaborated On 18 March 2020 employees and directors of EBL joined other
with Chittagong Grammar School (CGS) where we have donated banks and financial institutions to observe the birth centenary
• Business management,
trees for building greener future. of father of the nation Bangabandhu Sheikh Mujibur Rahman
• The art of entrepreneurship and
• Digital marketing by assembling in front of the bank’s head office at 10 am for ten
Sustainable energy finance loan
minutes donned in T-Shirts and holding placards with Mujib Year
EBL is the first bank in Bangladesh to offer sustainable energy logo and cutting cakes. Employees and directors of all the banks
finance loan product with assistance from the South Asia and financial institutions of the country gathered in front of their
Enterprise Development Facility (SEDF), managed by IFC in offices to their homage to father of the nation. Chairman of EBL
partnership with the UK Department for International Development Md. Showkat Ali Chowdhury led the event along with directors
and the Norwegian Agency for Development Cooperation to help Md. Showkat Ali Chowdhury, Chairman of EBL hands over a cheque for BDT 100 Mufakkarul Islam Khasru, Gazi Md. Shakhawat Hossain, MD & CEO
companies implement energy-saving measures and boosting the million to Prime Minister Sheikh Hasina for observing the ‘Mujib Borsho’ Ali Reza Iftekhar and EBL employees.
competitiveness of private enterprises.

The Bank also ensures that customers having production facilities

susceptible to damage environment has due environmental
clearance certificate from the concerned ministry while granting or
renewing credit facilities.

Healthcare

Coronavirus infection is a major threat to the global community.

World Health Organization (WHO) has declared COVID-19 as a
Digital Business Coach-Women Entrepreneurship
pandemic because of its significant spread throughout the world.
“EBL Ovilashi”: a special business account for women entrepreneurs Due to its high density of population Bangladesh is more vulnerable
to the spread of the virus. The government timely implemented An assembly of EBL family members in front of Gulshan head office was led by Chairman of EBL Md. Showkat Ali Chowdhury to observe Mujib Borsho
EBL Women Banking for the first time in Bangladesh has introduced several measures and steps to limit the new cases as well as
EBL Ovilashi. This is an interest bearing business current account minimize the death rates.
featuring all-inclusive product suite with 360 banking services for
women entrepreneurs. Donation to Prime Minister's Relief and Welfare Fund to fight
COVID-19 epidemic
Affiliating with HerStory for creating public awareness for
violence against women We have extended our support to combat the coronavirus pandemic
in Bangladesh by donating BDT 5 crore to the Prime Minister's
To eliminate violence against women and empower them, EBL Relief and Welfare Fund. EBL handed over the money through
Women Banking has joined hands with HerStory Foundation for the Bangladesh Association of Banks (BAB). This donation helped
AMIO campaign, a chronicles of readings and dialogues to create to provide PPE, testing Kits, respiratory equipment etc. to needy
discourse as part of the global 16 Days of Activism against Gender- people for combating the Corona Virus Outbreak in Bangladesh.

EBL Board of Directors and MANCOM members donned in Mujib Borsho T-shirt cut a cake to observe Birth Centenary of Father of the Nation

152 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 153
Launching Mujib Corner at EBL Head Office

MANAGEME

Management Discussion and Analysis

Inauguration of ‘Mujib Corner’ at the lobby area of EBL Head Office

To remember our hero of independence, we established a ‘Mujib

Corner’ at our head office in Gulshan on 11 March 2020. This was
a very small gesture from our part to make Mujib Borsho special
to us. Our Chairman Md. Showkat Ali Chowdhury inaugurated the
A photo collage on Bangabandhu’s life and works
NT DISCUSSI
MANAGEMENT
DISCUSSION &

&ANALYSIST
Mujib Corner as chief guest along with Chairman of EBL Securities

ANALYSIS
Ltd. and EBL Investments Ltd. Mohd. Noor Ali and other members
of EBL Board Salina Ali, Mufakkharul Islam Khasru, and Gazi Md.
Shakhawat Hossain. Among others, Managing Director & CEO of
EBL Ali Reza Iftekhar and senior members of the bank were present
during the inauguration ceremony.

One side of the corner features a bust and a portrait of Bangabandhu

and on other side features photos on the life and works of the father
Well-organized bookshelf of Mujib Corner
of the nation. Mujib Corner at EBL head office is rich in books,
pictures and documents on the life and works and ideals of the All in all, a principled, socially responsive and ethical banking is
architect of our independence. The customers and the employees what we aspire to achieve in all our deeds and banking activities
of EBL can spend time at the corner to read books and journals to and by doing so impact our society positively and sustainably.
learn about the life, struggle and ideals of Bangabandhu.

The Mujib Corner at EBL head office lobby, endowed with a rich collection of books
and journals on life and works of Father of the Nation Bangabandhu Sheikh
A bust and portrait of Bangabandhu displayed at Mujib Corner Mujibur Rahman, is drawing attention of readers and visitors.

Way forward

• We will act to bring positive changes through our activities in the areas of educational development, healthcare, sports, women
empowerment, art, culture and so on.
• In emergency situation of the country, we will try our best to extend our support.
• We will keep our engagement in development of our country.
• We will continue our lending through sustainable financing.

154 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 155
 Business Review
Comparative analysis of financial performance Corporate Banking

Management Discussion and Analysis

(2016-2020) Bangladesh has shown its resilient performance in spite of Corporate Banking of EBL has performed well which endorsed its
significant impact of COVID-19 pandemic by securing GDP growth inner strengths, resilience and compatibility. Our team is always
of 5.24% in FY 2020 which is one of the highest in Asia. The robust connected with customers over phone, email and social media.
The passion to deliver consistent business and financial investment income from capital market or dividend income
flow of remittance lifted the country's foreign exchange reserves to They have communicated and executed transactions through
performance has made EBL one of the most valuable financial from subsidiaries or income/gain from treasury securities
record high and put the country on a firm footing. And, fast roll out digital platform. As a result, asset portfolio has reached to BDT
institutions in Bangladesh. At the end of 2020, EBL market compensated the shortfall and vice versa.
of govt. stimulus package, stable food production and continuous 170,401 million with low NPL ratio of corporate loans 2.61% which
capitalization was BDT 29 billion, with asset size of BDT 337 billion
• In 2020, NII growth was negative by 27%, compared to 2019, public sector spending were the most significant role players is one of the lowest in the industry. And we have achieved milestone
and shareholders’ equity of BDT 29 billion.
due to capping of interest rates of all loans (except credit during the epidemic to keep the economy on track. trade volume of USD 3.80 billion despite the pandemic. Apart from
Bangladesh has made spectacular economic and social progress cards) to 9% with effect from 01 April 2020. On the other hand, these, 24 noteworthy new bookings were made by the business
non-interest income growth in 2020 was positive by 27%, EBL is a trendsetter in many areas of Bangladesh financial which includes multinationals, public sector entities and large local
over the last five decades. On an average, the GDP of Bangladesh
has risen from about 3 percent in the 1970s to about 7 percent compared to 2019, due to increase of investment in Treasury industry. It is known for its sustainable growth over the past 29 corporates. We have played a vital role for recovery of economy by
in the 2010s, and has crossed 8 percent just before the COVID-19 Bills and Bonds during this period. Here lies the key to deliver years and always thrives on its rich legacy of sustainable progress. disbursing of govt. stimulus package in different corporate entities.
pandemic came in. Though the pandemic has slowed Bangladesh's consistent financial performance.
growth, its GDP growth is projected to rise faster than that of peer
• Compared to year end 2016, our loan portfolio grew by 51% or
countries. Key facts & figures
BDT 76,860 million and reached to BDT 228,944 million on 31
Although our national economy has been growing consistently, December 2020.
banking sector has been exhibiting some signs of weaknesses
• We could not keep the NPL ratio where we would have liked
characterized by increasing default loans and weak governance
to but 2.72% in 2020 (2.69% in 2016) is still way below the
which, if not mitigated, might jeopardize the growth momentum of
industry average of over 7.66%.
the economy as a whole. Despite facing numerous challenges, EBL
has grown sustainably year on year navigating through difficult • Compared to year end 2016, deposit base also grew by 73% or 10 2.61% 24
times and delivered consistent financial performance. BDT 102,074 million and reached to BDT 242,358 million on
Corporate Relationship units NPL ratio of corporate loans Number of new bookings
31 December 2020 with strong focus to increase the low cost
• EBL recorded highest profit after tax (PAT) of BDT 4,103 million
CASA deposit base.
in 2020 which was BDT 2,656 million in 2016 registering 54%
growth. Despite managing a moderate sized balance sheet, • In 2020, Capital to risk weighted assets ratio (CRAR) was
our efficiency in ALM practice has always been producing 15.23% (solo basis), well above the requirement of 12.50%, and
tangible results over the years. over the years we have been able to maintain CRAR above the
regulatory requirement. USD 3.80 billion BDT 2,706.61 million
• Our continuous efforts to diversify revenue sources enhanced
Trade volume in 2020 Disbursed as stimulus package for salary and wages
our shock absorption capacity to sail through both good and • From the shareholders’ point of view, EBL’s return on equity
bad times. Whenever our NII growth fell short of expectation, also increased from 12.94% in 2016 to 15.04% in 2020.

EBL is a story of success: Factors behind the success Portfolio mix

Transport & E-communication
7% 3% Agri & Micro credit through NGO
3% 8%
Cement and ceramic industries
4% 2% Chemical, fertilizer, etc.
2% Commerce and Trading
Experienced Board comprising Diversified revenue Consistent and fair return for Superior asset Construction
2% 5%
industry veterans sources the shareholders quality Crops, fisheries & live stocks
Electronics & Electrical Goods
5% Food and allied industries
Metal & Steel Products
1%
19% 2% Other manufacturing or extractive industries
Others
Compliance and good Consistent credit rating by Innovation helps to create Best Human Resource in the
governance practices rating agencies long-term value country 6% Pharmaceutical industries
Power and gas
Readymade Garments Industry

In the last five years, EBL performed very well in the field of A review of the last five year financial progression is presented 5% Rubber & Plastic Industries
10%
business growth and compliance, reaching customer digitally and Ship building & Ship breaking
2%
in the Stakeholder’s Information section of this report where Sugar & Edible Oil Refinery
delivering consistent financial performance. We expect to exceed 8% 7%
our track record in coming days through smart and responsible comparative analysis of financial performance is presented with Textile Mills

banking. different ratios and graphs.

156 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 157
 COVID-19 response supported the country’s infrastructure development projects in

Management Discussion and Analysis

power, roads and communications, gas and mineral resources, water Cash management solutions
and sewerage, defense purchases etc. at possible level.
Brave, prompt and coordinated response is the base stone of
success during any crisis. Hence, the Bank started responding Major businesses booked
Core strengths
properly to COVID-19 immediately after its outbreak in China. We
have introduced and offered digital payment and collection gateway
‘EBL Connect’ so that corporate customers could get necessary Synchronized strong team and quality corporate governance,
banking support. We have also covered almost all its corporate commendable creditworthiness, digital innovation and most up- Project A/C of Project A/C Disaster Collection Mother A/C Bangladesh Marico
customers providing stimulus loans so that our customers can get to-date IT solutions, fast and efficient banking service to clients, Chattogram of Matarbari Management, Account of Khulna Satellite Bangladesh
back to business promptly to limit damages. The team engaged with innovation in products and services and great reach with global WASA Deep Sea Port Govt. of of Pragoti Development Company
industry peers and worked closely with Bangladesh Bank in shaping network helped EBL grow sustainably in the COVID situation. Consultant Bangladesh Industries Authority Limited
policy responses appropriate with market realities and difficulties. Responding rightly to the pandemic crisis, EBL has become strong Limited (Bangabandhu
During Pandemic, through loans and guarantees, EBL successfully enough to support the indomitable growth of Bangladesh economy. Satellite)

New relationships
Major deals & achievements

Structured Finance
New Business Sector- Shipping Line A2i & ICT Ministry Bangladesh Hi-Tech Park Authority
(Delta Shipyard Ltd.) & Food Sector- Edible (BHTPA)
Deal closing of USD 38.45 million for 35MW Successful closure of structured deal Successful closure of non-convertible Oil (Rupsha Edible Oil Refinery Ltd.)
(AC) Grid Tied Solar Power Plant of Spectra amounting to BDT 5,467.08 million for zero coupon bond of BDT 1,000 million for
Solar Park Limited in Paturia, Manikgonj 113MW Power Plant of Confidence Power United Finance Limited.
Digitalization
whereby EBL played the role of Intercreditor Rangpur Limited whereby EBL acted as the
Agent, Security Agent and Account Bank. account Bank for the said transaction.

International Business & Off-Shore Banking

Inclusion of EBL in Epay- Card Based EBL Connect- Utility Bill Padma Oil Dealer’s DESCO-BPO-NAGAD-EBL
Received award of Leading SME Trade Bank 2020 Private Finance Initiative (PFI) agreements signed National E-VAT Project Collection Solution Collection Payment Collection for bill collection where
from Asian Development Bank (ADB) and Best with Bangladesh Bank under Bangladesh Bank’s Platform EBL is the lead Banking
Partner for equipment trade in South Asia from Refinance Scheme including working capital loan in Partner
International Finance Corporation (IFC). large industry, pre-shipment credit, loans to NGOs.

Entered into term loan agreement with OeEB- Became an Associate Member of Factor Chain
Austrian DFI. Took drawdown of USD 20 million International (FCI), global platform & network of
from OeEB. factoring business.
Way forward
Term Loan Agreement signed with DEG- FMO; Took Issued Bank Guarantee of USD 33.5 million for
drawdown of USD 40 million from DEG- FMO. Afcons Infrastructure Ltd. favoring roads & highways
against counter guarantee of Export-Import Bank Bangladesh economy has started to show positive sign of pandemic recovery which is demonstrated through acceleration of export,
Sourced USD 318 million FCY fund in the year 2020 of India for the project of Construction of four lane public sector spending, inward remittance flow, positive momentum in capital market and private sector credit growth. Government is
from foreign banks & DFIs for off-shore banking. national highway. pursuing new policies and incentives for RMG sector to face the challenges of Pandemic fall out. To attract Foreign Direct Investment
Master Trade Loan Agreement signed with MUFG, (FDI) and boost up the economic activities, Government wants to set up 100 new economic zones by 2030 which will certainly vibrate
Abu Dhabi Islamic Bank (ADIB), and ITFC – sister Agreement signed with German-headquartered the economic activities of the land. The growth possibilities of the economy will certainly continue in 2021 counting the positivity
concern of IDB, State Bank of India. trade finance provider Tradewind to offer secure and emerging from implementation of mega projects, inclusion of young work force and gradual advancement in ICT sector. Private sector
innovative trade finance solutions to Bangladeshi credit growth is also expected to bounce back with improved credit monitoring practices in general. We are ready to take the growing
Arranged confirmation, LC structuring & refinancing manufacturers and traders involved in foreign trade challenges in the post pandemic business environment by placing better offer for foreign currency financing, Export Credit Agency
for 1,775 LCs for USD 612.44 million. on sales-contract terms. (ECA) backed financing for raising debt and equity products for our customers who seek innovative and creative packages bundled
with customized products and services.
Signed participation agreement with Bangladesh Fintech Initiatives: Connected to Interbank
Bank for green transformation fund for Euro 200 Information Network (IIN), block chain platform with
million for facilitation access to financing in foreign JP Morgan.
exchange for all manufacturer exporters irrespective
of sectors against import of capital machineries and During the pandemic lockdown, arrangements with
accessories relevant to environment-friendly/green correspondents for making Local LC payments
attributes specified by Bangladesh Bank. through foreign nostro account with rebate earnings.

158 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 159
Corporate Banking Event Highlights
Retail & SME Banking

Management Discussion and Analysis

Year-2020 will be marked as a year of COVID-19 that made the and post strong financial numbers on the board. However, we
whole world come to a standstill. With the world economy coming ensured a steady flow of small ticket deposits that not only played a
to a grinding halt, especially in the second and third quarter of the significant role in facilitating seamless lending but also worked as
year, it was quite challenging for the Bank to ride out this wave bank’s strength of managing core deposits.

Key highlights

EBL Partners with DEG-FMO for Impact Financing EBL & Tradewind sign MOU for Export Factoring Solutions
Launched one-stop service centre ‘EBL
One-stop solution for women First bank in Bangladesh to launch e-KYC
SKYCARE’ to address all EBL card related
entrepreneurs ‘EBL Ovilashi’ based account
services

+3.5% +14.5% Launch of EBL Self Service portal and

Growth in deposits (2020 vs. 2019) Growth in Loans & advances (2020 vs. 2019) EBL Insta- Banking

COVID-19 response
EBL Head of Corporate Banking & EBL Head of International Business and Offshore EBL signing PFI agreement with Bangladesh Bank as BB’s refinance scheme for
Banking meeting with IFC at Mumbai (Prior COVID-19) Pre-shipment Credit during COVID-19

2020 was a year of concern, perseverance and adaptation. COVID-19 relationship managers and branch managers were in constant
pandemic created havoc and damaged economies across the touch with the clients during and after lockdown to remain vigilant
world, including financial markets and institutions in all possible of their wellbeing as well as financial needs. We relentlessly fought
dimensions. But our branches facilitated customer engagement against all odds and became that friend of many that enabled
and ran multiple awareness programs using social media platforms lending money in need. We have ensured that one can get physical
to establish and maintain the banker-customer bonding. cash day and night from any EBL 365. We have started offering fully
digital onboarding facilities and capitalizing the digital tools for
EBL ensured that ATMs were available and maintained social customer acquisition. We thus hope to provide more personalized
distancing and hygiene norms at all branches while taking care and intuitive relationship and create connected experiences
of all the financial needs of the customers. Besides, respective through all channels in the future.

JICA Team visited EBL Head Office (Pre COVID-19) IFC Team at EBL Head Office (Pre COVID-19)
Our Performance in 2020

Retail & SME deposits

Our deposit mobilization strategy was adjusted to prepare for the we used state-of-the-art facial matching technology with
next normal, which was to be very different from that of the previous Election Commission Database to open customers’ account
years. We started with a straightforward exercise of mapping instantly. We followed it up by facilitating the customers a
money movement trends between various deposit accounts that complete eco-system of Banking from home. We launched EBL
gave us a clear view of evolving bank customer behaviors. This Self Service portal and EBL Insta Banking – tools through which
increased emphasis on CASA has been a key driver of the deposit customers can open a current/savings account, or an EBL Fixed
growth of the Bank. Our Retail & SME CASA deposit grew by 29.14% Deposit and EBL DPS – from the comfort of their home. In the
alone in 2020 compared to last year. midst of the pandemic, we hope this brought a much needed
relief to our base of around 6 Lac happy customers, with many
EBL Team with Chinese Ambassador H.E. Li Jiming at Chinese Food Festival Singing ceremony with Chattogram WASA of the project account of establishment of In line with our digital initiatives of inclusive banking, we were the
more to join the EBL family.
(Pre COVID-19) sewerage system in Chattogram Metropolitan (phase-1) first bank in Bangladesh to launch e-KYC based account, where

160 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 161
Retail loans EBL SKYCOINS, a first of its kind Reward Program in Bangladesh, Payroll banking Student banking

Management Discussion and Analysis

was launched for EBL premium segment credit cardholders. The
Due to lockdown and pandemic situation, the Retail asset business We adapted to the new normal through increased focus on EBL Student Banking serves the students with a variety of banking
reward program offers cardholders to earn SKYCOINS through
was hampered from March to July. Still Retail assets ended up with digitalizing our services for the convenience of our payroll clients. products and services tailor-made for this segment of clients.
retail purchases and later redeem the points for shopping vouchers,
8.30 % year on year growth. There was a paradigm shift to mortgage We have automated many of our manual salary disbursement Collaborating with Bangladesh Bank’s financial literacy and financial
flights & hotel booking, car rental booking and many more exciting
based home loans in 2020 which resulted in an incredible 60.4% process via our digital payment portal, EBLConnect. There has inclusion agenda in 2020 we have organized school banking
rewards. In 2020, EBL became one of the leading banks in Bangladesh
growth in home loan in comparison to previous year, the highest been a 48% growth in digital transactions via EBLConnect for salary roadshows covering different areas of the country and also arranged
to introduce Inward Remittance Services in collaboration with
since its inception 12 years ago. Apart from home loan, personal disbursements from 2019. We on boarded many reputed companies School Banking Conference in Tangail district with participants more
Visa - a complete end to end Digital solution. Using the service,
loan also grew by 3.53% from 2019. even during the pandemic. There has been a 21% increase in the than 300 people. We also cater to student file service for the students
Bangladeshi residents living in Malaysia and Singapore will now
number of payroll accounts and 18% increase in the number of going abroad for higher studies through dedicated student centers
While keeping pace with business, asset quality was never be able to instantly send money to their relatives and loved ones
payroll cards in 2020 compared to last year. The numbers indicate along with a specially designated student desk.
compromised. Consequently the classified Loan percentage of retail in Bangladesh. In addition, we have launched UnionPay Classic
how efficiently our dedicated business and support teams worked
loan is quite low. Another important task of executing payment Debit Card, UnionPay Dragon Prepaid Card, Mastercard Contactless
together, ensuring continuous growth in business despite facing all
deferral as per Bangladesh Bank circular was accomplished Titanium Credit Card, Mastercard Contactless World Credit Card,
the challenges of a global pandemic.
against the large number of accounts successfully. Diners Club International E-commerce Issuing & Acquiring (DCI
ProtectBuy) and so on in 2020. All in all, we have launched a host of
SME loans innovative products and projects amidst the pandemic. Strengthening digital capabilities

Amidst the looming impediments, challenges, threats and Retail propositions

uncertainties of the ongoing pandemic, we remained resolute. And 2020 was a different year in terms of how customer availed availed the benefits of performing transactions through ATM, CRM and
our unyielding effort and perseverance has made 2020 a year to Through Retail Propositions we ensure that EBL clients can enjoy banking services. With services at branch being limited due to DROPBOX. Over 5 million transactions worth over BDT 5 billion took
be proud of. Small business registered portfolio growth of 23 % in great lifestyle and travel benefits on EBL Cards round the year. We pandemic, customers had to opt in for digital channels- such as place via all EBL 365 across the country. Despite all the challenges in
2020 compared to previous year. Within a short span of 3 years, the promote the finest lifestyle privileges, arrange events and value EBL SKYBANKING, EBL 365 and DROPBOX etc. Customers adapted 2020, EBL ATMs reached a service uptime of close to 100%.
team was able to double the size of the portfolio. Keeping in mind added services as well as maintain EBL Sky lounge for consumers themselves with the digital channels and transformed the way they
used to perform transactions. E-commerce
the adversity being faced by the borrowers, EBL was one of the first to enhance their banking experience to the fullest. In total, we
Financial Institutions to roll out pay by deferral facilities in the early have around 250 alliance partners out of which many are top-line, It has been a record-breaking year for e-commerce team as EBL
EBL SKYBANKING
stage of the lockdown, allowing respite of loan repayment during renowned companies/brands. SKYPAY, the online payment gateway of EBL, has surpassed BDT
the lockdown period. Even during the country wide lockdown the 2020 was a game changing year for EBL SKYBANKING. Owing to the 22.22 billion in 2020 making it the first and only bank in Bangladesh
Digital health talk in collaboration with the most trusted
team ensured implementation of 9% interest rate on all SME loans. pandemic, customer had to adapt to the new normal of banking- to cross this coveted threshold. We have seen a year-on-year
International and local brands in health sector i.e. Mount Elizabeth
digital banking. SKYBANKING played a crucial role in EBL’s digital increment of more than 650% in terms of transaction volume.
Riding on the uncompromising endeavor of SME team, EBL Hospitals-Singapore, Bangkok Hospital, Evercare, GD Assist Ltd. etc.,
transformation in 2020 as over 2.5 million of transactions worth Moreover, 8 million online transactions have been processed in
successfully achieved CMSMEs stimulus disbursement target, Online doctor consultation in collaboration with Popular Diagnostic
well over BDT 2 billion took place, breaking all previous records. As a 2020 by EBL SKYPAY making it the most frequently used payment
including sector wise disbursement criteria set by Bangladesh Ltd., United Hospital Limited etc. and several awareness post was
result, App downloads increased significantly making SKYBANKING gateway and as a result the year-on-year increment in terms of
Bank. In terms of asset quality, maintenance of quality portfolio very engaging and appeasing to the clients to face the tensed time
a platform having more than 250,000 users. Compared to 2019, number of transactions processed is 213%. With all the big numbers
was always on our focus. As a result, asset quality was more than of the pandemic. Likewise, arranging several engagement events
total number of transactions has grown by 109%, while the total reflecting to a huge 74% market share in online payment gateway
impressive even in the face of the pandemic. from time to time like Chobir Golpe Eid, EBL Priyo Baba etc. was
volume of transactions increased by 160%. In 2020, EBL became providers, both Visa and Mastercard have awarded EBL as the “Best
the ‘new normal’ way for Retail propositions to keep EBL clients
Supply chain finance the first ever bank in Bangladesh that launched the contactless E-Commerce Acquiring Bank” for 2019-2020. The relentless effort
delighted and connected.
payment method on SKYBANKING app using the platform of Visa- to push volumes through online campaigns and some big names,
Supply chain finance started its operation in 2018 and it grew one of the global leaders in digital payments technology. Certain such as bKash, Nagad, Daraz partnering up with EBL SKYPAY, has
Women banking
its book by more than 69% in 2020 compared to previous year, other features were added in SKYBANKING during 2020 such as made it possible to achieve all these milestones even amidst this
despite pandemic situation. The key driver to growth is the Anchor EBL Women Banking has brought all unique comprehensive and positive pay instruction, Link3 and Carnival Internet bill payment, dreadful pandemic.
led approach. The products were tailored to specific corporate time sensitive plans as the key to ignite the best re-start for a better Card Protection Plan Subscription.
client’s needs. In many cases, the Anchors took the risk mitigation M-commerce
and more balanced tomorrow. EBL Women Banking for the first
responsibilities, by providing corporate guarantee, or undertaking, EBL Digital Interactive Agent (DIA)
time in Bangladesh has introduced an interest bearing business In the year of adopting ‘new normal’, we leveraged social media
or account debit authority. Electronic disbursement channel is current account, EBL Ovilashi. It is simply an all-inclusive product EBL DIA, the first ever social media banking chatbot of Bangladesh, to reach users with 100+ COVID-19 awareness campaigns. With
used. Transactions were also controlled by the Anchor in many suite with 360 degree banking services for women entrepreneurs. has reduced significant traffic from EBL contact center and 400+ campaigns launched in 2020 we amassed 13 million+
instances. We also launched a number of products e.g. corporate Through a digital seminar, EBL Ovilashi was officially launched branches in 2020. Given the situation in pandemic, DIA played an views, 18 million+ impressions, 3 million+ engagements, and 5.6
guarantee backed dealer finance, regular dealer finance, bank by Ali Reza Iftekhar, Managing Director & CEO of EBL along with important role as customers preferred using EBL DIA for availing million+ organic reach. Through other social media platforms, our
statement based dealer finance, and reverse factoring. other esteemed guests Selima Ahmad, MP, President, BWCCI and certain services, such as, checking account/card information, interaction with valued and potential customers has increased
Lila Rashid, Executive Director, Bangladesh Bank. In response to searching EBL product and contact information, recharging mobile, significantly: engagement of 266,000+ via Instagram; 571,229 push
Cards business
entrepreneurs’ demand for guidance on how they should manage etc. In 2020, the total number of service requests in EBL DIA was messages via Viber, and the number of LinkedIn followers crossed
EBL remained one of the top cards business generating banks in their businesses, adopt different digital initiatives and enhance almost 367,000. Moreover, around 125,000 mobile recharges took 90,000. Through google ad campaigns, 5 million+ impressions were
Bangladesh in 2020, despite the COVID-19 specific challenges. customer experience, we have introduced an entrepreneurial place in EBL DIA in 2020, making life easier for our customers. created across the internet. We have also launched mVisa Bangla
Furthermore, EBL was acknowledged by our payment network booklet exclusively covering different day-to-day business QR payment, a zero contact payment system on par with changing
EBL 365 and DROPBOX
partners with prestigious awards including Excellence in management issues in detail. Our product suite also caters different banking habits. The implementation of Visa CyberSource within
Mastercard Prepaid Card Business 2019-2020, Excellence in Cross training and membership facilities with country renowned women Fully equipped with latest advanced level anti-skimming and EMV EBL SKYPAY, which facilitated cash-in project with country’s largest
Border Business 2019-2020 (Visa) and Excellence in Product associations followed by exclusive digital promotional services for technologies, all EBL ATMs are PCI DSS compliant. Due to limited MFS operator bKash, ensured 99%+ service uptime and complete
Innovation 2019-2020 (Visa). EBL Ovilashi customers. services being offered through branches during pandemic, customer merchant support. Diners Club International card acquiring has

162 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 163
also been enabled this year via EBL SKYPAY. bKash- CCBP (credit look forward to catering digital financial needs of newer times Retail & SME Banking Event Highlights

Management Discussion and Analysis

card bill payment) project using Visa OCT (original credit transfer) passionately with innovative strategies.
has generated more than BDT 4 billion in transaction amount. We

Reaching diverse customer groups

It is pertinent to mention that our retail banking services are ATMs, a 24X7 contact center, an Internet banking channel and
no longer restricted to branches and ATMs but has been made Smart App for banking on the Go. Even though the COVID-19
available through mobile apps and the internet. To deliver an pandemic, we maintained our focus on customer centricity with
Omni-channel outstanding customer experience, the Bank has deep understanding of the financial needs.
developed a wider network of fully interconnected retail branches,

EBL Launches inward remittance services for cardholders EBL and Unilever sign supply chain financing deal
Challenges and our approach

Challenges Our approach

COVID-19 situation created unprecedented We adapted to the new normal through increased focus on digitalizing our services
challenges to work with customers and tailoring our products for the convenience of our customers. We built resilience
in processes to ensure smooth services for customers across touch points,
branches, ATMs, call centres, digital assets and support operations.

Stress on net interest income owing to skewed We have taken a number of cost minimization initiatives throughout the year,
interest expense and a decrease in overall without any counterproductive effects on growth.
transaction volume Payroll signing with BEOL EBL participated in Basis Soft Expo fair 2020

Exponential increase in the number of Dedicated team provided seamless customer support, leading to customer delights.
customers’ dispute and queries Keeping service excellence locked in the heart of the bank, EBL shifted heavily
towards using digital platforms as the key to maintaining its service health as a
strategy which also targeted maximizing social distancing.

Hardest hit faced by SMEs due to pandemic Keeping in mind the adversity being faced by the borrowers, EBL was among the
and lockdown first to roll out ‘pay by deferral’ facilities and mobilize stimulus loans to SMEs from
the Government’s stimulus package.

Way forward
Payroll Signing with ACE Autos Launch of EBL SkyCare
• Putting emphasis on adapting to new customer norms • Putting our efforts on building an exemplary brand image
and analyzing customer preferences towards channels, to earn and retain customer loyalty.
products or financial needs, and changing business
models accordingly. • To revisit the strategy for capturing new, unexplored
market from SME segments to ensure asset growth.
• Intensifying the pursuit of low cost deposits to fuel growth.
• To evaluate intra-industry partnerships for sales and
• Accelerating cost reduction efforts to improve our cost services.
efficiency ratios through projects that will minimize cost-
to-serve against key products, services and channels. • Staying one step ahead of rapidly evolving customer needs,
faster leveling of competitive advantage, greater regulation,
• To capitalize on digital adoption of customers, following ever-changing nature of technology, and unqualified risks.
the significant digital migration during COVID-19, by
introducing a plethora of new and revamped digital • Regular communication and robust screening and
products and services. monitoring to curb non-performing loans.

Retail Banking Conference 2020

164 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 165
Treasury Fixed income securities market

Management Discussion and Analysis

Inward remittance-NRB USD in million

45.00
From the beginning of the second half of the year, the yield on
40.00
The banking sector of Bangladesh faced several challenges in the which put the banks to face an excess liquidity condition. Besides, government securities started to fall rapidly. The excessive liquidity
35.00
year 2020 due to COVID-19 pandemic and implementation of the the foreign exchange reserve of the country hit USD 42 billion caused by heavy remittance inflow, stimulus fund disbursement,
30.00
during the year-2020, while Bangladeshi Taka appreciated against and downward credit growth somewhat forced the banks to invest

USD in million
single-digit lending rate. Despite the unprecedented pandemic, 25.00

the increased amount of remittance inflow and the govt. stimulus US Dollar by 0.12 percent during the pandemic period. in government securities at a lower yield. 20.00

15.00
packages amplified the overall deposit growth and liquidity Despite facing several challenges, we have been able to make a According to Bangladesh Bank statistics, the trading turnover
10.00
condition in the banking sector. Private sector credit growth dropped significant contribution to the Bank’s profitability, risk mitigation, volume of tradable government securities jumped by 143.85 % 5.00
significantly throughout the year amid economic uncertainties, and liquidity management in the year 2020. in 2020. Total Treasury bill and Treasury bond trading turnover -
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
volume was BDT 1,127.96 billion in 2020, which was BDT 462.56 2020 2019 2018
Key facts & figures (2020 vs.2019) billion in 2019. As an opportunity for investment shrinks alongside
the credit growth, bank's demand for government securities Asset-liability management (ALM)
increased significantly and impacted the yield curve negatively.
However, in 2020, EBL did exceptionally well in both investing and Asset Liability Committee (ALCO) is one of the core decision making
trading of government securities, and we were able to generate committees of the Bank and primarily focused on positioning the
95.88% more income in comparison to the previous year. Bank’s overall asset and liability. In 2020, EBL was able to maintain its
+95.88% +14.88% Secured fourth position in terms of
total secondary government securities asset-liability position swiftly to conserve a healthy balance sheet and
Investment income growth Treasury income growth transaction volume in FY 2020 Yield Curve Comparision of Govt. Securities helped to generate a noticeable amount of revenue. During the crisis
of excess liquidity, ALCO’s decision to invest in government securities
Market share of EBL 9.3 and shed off high-cost deposits was the most impactful decision
8.3 during the year. Apart from these, the committee regularly monitored
Spot Forward SWAP Govt. Securities 7.3 various regulatory requirements such as Maximum Cumulative

in percentage
6.3
5.3
Outflow (MCO), Liquidity Coverage Ratio (LCR), and Net Stable Funding
9.91% 9.43% 15.21% 6.77% 4.3 Ratio (NSFR) etc. to ensure the overall financial stability of the Bank.
3.3
2.3
Challenges & our stance
Market performance in 2020 1.3
0.3
91 Days 182 Days364 Days 2 Years 5 Years 10 Years 15 years 20 Years
Year 2020 was quite challenging for the banking sector of Bangladesh.
Money market Foreign exchange market
31 Dec 2020 31 Dec 2019 31 Dec 2018 The impact of COVID-19 fallout might cause a greater extent of
High remittance inflow, injection of stimulus funds to the economy In 2020, the Foreign exchange reserves of the country crossed USD economic turbulence in the coming days. Regardless of these, we have
and downward credit growth boosted the liquidity in the market. 42 billion for the very first time in the history of Bangladesh despite been able to continue the growth trend and increase total treasury
To overcome the fallout of the economy caused by the COVID-19 NRB business profitability. Our presence in the market during the lockdown period
COVID-19 crisis. The existing foreign exchange reserve is capable
pandemic, Bangladesh Bank eased the regulatory requirements of enough to upkeep the country's strength to external shocks, as well as was noticeable. A dynamic approach to the money market and foreign
In 2020, EBL sourced inward remittance of USD 95.04 million
maintaining the cash reserve ratio (CRR) as well as increased the to conserve macroeconomic stability in light of the ongoing COVID-19 exchange market helped to generate significant revenue for the Bank.
through NRB business which was 25.26 % of Bank’s total inward
advance-to-deposit ratio (ADR) to 87% from 85% for conventional pandemic. In addition, existing level of foreign exchange reserve can Along with that, continuous monitoring of asset-liability management
remittance. In 2020, EBL started making foreign remittance
banks. Except for the first few months, the money market was support import bills payment up to ten months’ time period. Throughout helped the Bank maintain favourable regulatory liquidity ratios
transactions with Transfast-USA.
mostly liquid throughout the year. Hence, from January 2020 the year, total imports of the country took a nosedive due to the economic throughout the year.
to December 2020, the average call money rate dropped from slowdown caused by depressed demand and consumption. Although
4.90% to 1.80%, mainly because of excess liquidity in the market. the country’s Balance of Payment (BoP) is showing a significant
Throughout the year, average call money rates hovered around increase along with the foreign exchange reserves. The Central Bank
Way forward
4.02%. At the end, we have managed money market liquidity of Bangladesh intervened to stabilize the market by buying dollars.
efficiently throughout the year despite the pandemic situation. However, in that situation, EBL was able to manage its foreign exchange
Average call money rate liquidity position efficiently and the regulatory net open position. • Focusing on product and service digitalization.

6 Cross rate of major currencies against BDT in 2020 • Ensuring appropriate fund mobilization through effective asset-liability pricing.
84.98 117 • Customization of derivative products.
5 84.96 114
84.94
4 84.92 111 • Focusing on fixed income securities market to explore more trading opportunities.
In percentage

84.9 108
EUR/BDT & GBP/BDT

3 84.88
84.86 105
USD/BDT

84.84 102
2 84.82
84.8 99
1 84.78 96
84.76
84.74 93
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 84.72 90
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2020 2019 2018 USD/BDT EUR/BDT GBP/BDT

166 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 167
Performance Review of EBL Subsidiaries

Management Discussion and Analysis

EBL Securities Limited
Operating environment
EBL Securities Limited (EBLSL) is one of the fastest growing full-service brokerage houses in Bangladesh and one of the leading stock
brokers of Dhaka Stock Exchange (DSE).
2020 ended on a positive note as we got a medical solution to the
worst health crisis the world has seen in a century. Contrary to
common belief, Bangladesh has done remarkably well in handling Key factors
both health and economic impact of the pandemic. Compared to
other developing countries, the country has fared well and has one
of the lowest per capita COVID-19 cases and deaths in the world.
Though early lockdowns did help in keeping infections low, a • Success in containing the outbreak of pandemic
younger population appears to the critical factor in the fight against One of the leading Brokers of DSE
BDT 1.5 Billion 4.54%
the pandemic in Bangladesh. • Swift economic recovery Paid Up Capital Market Share in 2020

Post-pandemic, DSEX gained a whopping 33.04% in just seven

• Favorable regulatory environment
months as the index moved from 4,060.44 in May, 2020 to 5,402.06
in December, 2020. Market capitalization of DSE also increased
• Cap on interest rate of Banks
by 41.77% from BDT 3,161 billion to BDT 4,482 billion during the
same period. Average daily turnover in DSE has also witnessed a
• Growing investor confidence Dedicated Research Team
5
remarkable 35.18% growth in 2020 compared to the average daily
Locations
turnover in 2019.

Particulars 2020 2019 2018 2017 2016

Market Cap (BDT in billion) 4,482 3,396 3,873 4,229 3,412 Products and services
DSEX Index 5,402 4,453 5,386 6,245 5,036
Avg. daily turnover (BDT in million) 6,489 4,803 5,510 8,748 4,944
Market P/E 16.5 11.8 15.19 17.3 14.3
Source: dsebd.org & EBLSL

The expansionary monetary policy of Bangladesh Bank coupled Bangladesh. As industry-wide deposit rate has fallen sharply,
Brokerage Services: CDBL Services: Research Services Daily Electronic Notification
with the implementation of the government's stimulus packages keeping money in banks has become less attractive to investors. As
DSE & CSE Full Service DP
aimed at accelerating economic revival have pushed up the a result, fund has been flowing to alternative investment channels
liquidity in the banking system. such as National Savings Certificates (NSC), Stock Market or Real Error free & compliant trade BO Account Opening & Equity Valuation, Industry & Daily portfolio statement, trade
Estate. All these initiatives may have a far reaching impact on the execution and margin trading Maintenance, Share Transfer macroeconomic review, daily & confirmation & research reports
On the other hand, introduction of single digit interest rate has overall economy and specifically on the development of a vibrant and Transmission through weekly market updates through email & SMS
helped in lowering the cost of fund for the borrowers and which, capital market in Bangladesh. CDBL
in turn, improved profitability for majority of the corporates in

Capital market outlook 2021

Bullish trend in the market may continue in 2021 and the year may stocks have already become overvalued and may experience
Foreign Trade Margin Loan Facilities Panel Brokerage Trade with Ease
turn out to be full of opportunities for market participants because of correction if the market momentum slows down. BSEC has also
the rising investor confidence, monetary easing by the central bank been vigilant in thwarting all market manipulation attempts and Trading for foreign investors & Competitive rates and easy Special trading services/ Trade instruction through
and pragmatic policies by the securities regulator to establish a has already taken strict measures against few wrongdoers. NRBs processing terminals for institutional DSE Mobile & Desktop App,
vibrant capital market. Moreover, a number of renowned companies investors Telephone, Email and Fax
are in listing pipelines and initiatives for listing SOE (State-Owned
Enterprise), MNCs are in process which will enhance market depth. Key drivers Performance highlights
BSEC and Bangladesh Bank are working tirelessly to form special
funds to increase the capability of market makers and to arrange  BDT in million
low cost funds for the market intermediaries. Market development • Attractive market valuation
Particulars 2020 2019
and reform initiatives by BSEC are expected to continue which in • Regulatory reforms to boost investors’ confidence and
Total operating income 248.87 194.03
turn may translate into notable turnaround of the stock market in bring more institutional and foreign investment
Net operating profit 113.16 32.13
the following years as well. • Impressive economic growth prospect of Bangladesh
and improvement in liquidity situation Net profit/(loss) 18.31 (90.80)
However, investors should be very careful in making investment • COVID-19 vaccine rollout Operating profit margin (%) 45.47% 16.56%
decisions and shall avoid herd mentality as the market has Total assets 6,502.68 6,516.86
• Formation of special funds for market development
witnessed a sharp rise in last few months and some sectors and

168 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 169
During the year, EBLSL has focused on effective dealer portfolio and of its business expansion effort, EBLSL has research distribution

Management Discussion and Analysis

negative equity management and has significantly improved port- agreements with several global platforms such as Bloomberg, Re- EBL Investments Limited
folio performance and lowered clients’ negative equity. As a part finitiv, FactSet etc.
EBL Investments Limited (EBLIL) is a full-fledged merchant bank with a motive to expand its service horizon by offering a comprehensive
range of financial solutions starting from debt to equity through public offering, corporate advisory services and portfolio investment products.

Products and services

Issue management Corporate advisory Portfolio management Underwriting Debt capital

(discretionary and (IPO, RPO, Rights) management
non-discretionary)

Performance highlights

Underwriting commitment given amounting to BDT 364.07 million Working as trustee in issuance of
in issuance of IPO and rights share offering. 13 (thirteen) bonds.

In 2020, EBLSL received “Most Innovative Brokerage House” award from International Finance Magazine,
UK for product and service innovation. Key financials
 BDT in million

Particulars 2020 2019

Operating income 44.99 27.54
Way forward
Operating profit 19.76 3.22
(Loss)/ profit before tax (11.98) 1.00
• Ensuring service excellence throughout the organization by • Enhancing capacity of equity research team and increasing
engaging all employees in product and service innovation its equity & industry coverage to attract more institutional Net loss after tax (3.15) (10.79)
process, offering new-to-the-industry products and and foreign clients. Total assets 468.09 417.61
services, arranging training programs and encouraging
job rotation within the organization. • Digitalization of BO account opening, maintenance and
service delivery process to ensure maximum customer
• Increasing offline and online reach by opening up new satisfaction.
branches/booths at key locations, conducting customer
Way forward
outreach programs and connecting customers through • Negative equity portfolio management and margin loan
online media. monitoring to ensure better profitability.
• Strengthening corporate advisory services.

• Identifying cross-selling opportunities by working together • Strengthening debt issue service through private placement.
with Eastern Bank Limited, EBL Investments Limited and
EBL Asset Management Limited. • Keeping focus to enhance trustee services activities.

• Discretionary and non-discretionary portfolio management service.

170 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 171
 Management Discussion and Analysis
EBL Asset Management Limited EBL Finance (HK) Limited

EBL Asset Management Limited (EBLAML) was awarded license from Bangladesh Securities & Exchange Commission (BSEC) on 25 May EBL Finance (HK) Limited, a wholly owned subsidiary of EBL, has been successfully operating in Hong Kong since 2013. Tuning with EBL’s
2017 for full-fledged asset management operation. The main objective of EBLAML is to carry out the business of asset management, strategy of diversifying sources of revenues and spreading wings in foreign markets, EBL Finance (HK) Limited is steadily expanding its
portfolio management, fund management, capital market operation, other financial services including corporate advisory services, merger business base in Hong Kong. Operating under money lending license the subsidiary has been offering an extensive range of trade based
& acquisition, equity investment, corporate restructuring, financial & socio-economic consultancy, corporate research & project studies, products and services for both Bangladesh and Hong Kong based customers and has been able to successfully penetrate in both the markets.
privatization other related services in Bangladesh and overseas.

Market scenario & our approach

Products and services

The general competitiveness has increased in Hong Kong amid financial institution operating in Hong Kong in terms of business
COVID-19 pandemic due to dwindling economy and increase in the volume and customer base. EBL Finance (HK) Limited is also
number of Bangladesh based financial service providers. Despite underway extending its customer base to China through Eastern
the sharp upsurge of market challenges, EBL Finance (HK) Limited Bank Limited’s representative office in Guangzhou.
Mutual fund management Portfolio management for HNWI Corporate advisory has been able to keep its position as the largest Bangladeshi
(High-net-worth individuals )

Key financials
Key initiatives  HKD in million

Particulars 2020 2019

EBLAML has launched its first open end mutual fund “EBL AML 1st August 2020. Initial size of the fund is BDT 300 million and till 31 30.66
Net assets 26.54
Unit Fund” in 2020 and the fund has started its operation since 14 December 2020 it has subscribed amount of BDT 165 million.
Revenue 26.42 41.35
Operating profit 9.34 19.22
Profit after tax 7.95 16.26
Key financials
 BDT in million Bills financed 333.21 506.69

Particulars 2020 2019

Operating income 15.56 26.82
Way forward
Operating profit 4.92 17.42
Net profit 17.68 0.604
EBL Finance (HK) Limited, with its diverse range of services and innovative customer solutions will continue to grow its customer
Total assets 293.10 295.14
base. With transformation of retained earnings to core-capital, EBL Finance (HK) Limited has also stepped up the ladder to becoming
a deposit taking company soon.

Way forward

There is a huge potential of growth in capital market and mutual fund industry. In 2021, we are hopeful to subscribe more fund.

172 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 173
HR: Treating People with Care

Management Discussion and Analysis

Value addition in 2020

As a caring business partner, the role of HR is to make sure the However, we have never thought of the challenges that year 2020
people management policy and procedure are aligned with the would bring. The uncertainty has troubled the world economy, and
needs, goals, and aspirations of the organization. Hence, eblHR people have been put in stressful situation. eblHR tried its best
planned at the beginning of 2020 on its usual strategic activities, to keep everything in perspective and aligned. The top priority Our strategy was to connect people to We have continued our efforts to bring We have worked on creating effective
i.e. employer and employee branding, increasing employee value for eblHR in 2020 was correct response to the crisis, keeping the create loyalty, employee engagement efficiency in HR processes such as cost employee engagement, reducing
proposition, finding high-quality talent and developing the next employees engaged, providing the right communication for mental and motivation leading to strong of new hire, time to hire, learning and employee turnover, reducing the absence
generation of leaders, creating learning opportunities, workforce health and well-being, and managing their work. corporate culture. development budget etc. rate, and improving the quality of hiring.
development and achieving diversity with inclusion.
Priorities in 2021

Response to COVID - 19
• eblHR ISO recertification • E-certification module on employee self-certification
• Integration of Digital Quality Management System • Rollout of EBL employees mentoring policy
• Sharing updates with our stakeholders regarding measures • Communicating EBL policies related to the pandemic.
• 360 degree feedback on employee behavior • Employee benefits survey
adopted by EBL to handle COVID-19 crisis.
• Arranging health talk and different awareness sessions.
• Communicating messages from Senior Management using
• Tried to be outstandingly caring for all the people of EBL.
digital channels. Role of HR during COVID-19 pandemic

leagues to keep them motivated during the pandemic. Our training

Performance highlights in 2020 continued on the digital platform. We have never stopped working,
and we were never disconnected. People’s safety was our number
one priority, and we ensured maximum care for our people.

ESS – employee Introduction Introduction Online quarterly Significant cost Introduced e-books
self-service HRIS of behavioral of individual performance rationalization by for ‘new employee
successfully competency behavioral rating appraisal system digitalization welcome pack’
launched framework as an employee
development tool
We have been very proactive during the pandemic. Right from the
very beginning, we started collecting health-related information Every day we try to stay connected with our colleagues who are
of our colleagues and their family members using a google based not well, and COVID infected. We have sent greetings (get well soon
digital tool. We have taken all the measures to protect our people card and fruits basket) to the COVID infected colleagues. Besides,
according to WHO guidelines. We facilitated work from home for we have given them physicians’ advice, medicine, dry food, finan-
Introduced Learning & Conducted Computer based Future Leader Reviewed people our people and created a communication channel for all the col- cial support, as applicable.
mandatory self- development e-learning for 3,141 self-certification development management policy
certification programs arranged participants program for 525 program for 73 of EBL subsidiaries
training program for 11,523 employees future leaders
participants and
many of those
arranged in digital
platform

Our HR strategy in 2020

• More focus on people’s wellbeing. Shifting focus from “People • Taking extra care for better employee experience.
First” to “People’s safety first”.
• Improved emphasis on productivity through quarterly
• Focusing on people’s behavior and evaluating their impact. appraisal.
• Digitalization for process simplification and cost-saving.

174 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 175
 Management Discussion and Analysis
Code of conduct and ethical guidelines Talent development

Our well-written code of conduct clarifies our mission, vision and Additionally, our code of conduct is the central guide and reference 2020 was a tough year for arranging in-person training due people have received 52,319 man-hour training that is 18 man-hour
values, linking them with standards of professional conduct. The for employees to support day-to-day decision making. Our code of to COVID-19. In 2020, we have arranged 128 learning and (2 days) training per person in 2020. This year, EBL has introduced
code articulates the values, the organization wishes to foster in conduct encourages discussions of ethics and compliance, em- development programs where 10,998 participants were trained e-certification course and around 700 people have certified in AML
leaders and employees and, in doing so, defines desired behavior. powering employees to handle ethical dilemmas they encounter to upgrade their knowledge in the necessary field. Most of the & IT courses. Apart from the above, 3,141 employees participated
Our code of conduct sets the benchmarks against which individual in everyday work. It also serves as a valuable reference, helping trainings were conducted through digital platform. In 2020, our in the e-learning evaluation.
and Bank’s performance can be measured. employees locate relevant documents, services and other resources
related to ethics within the organization.
Leadership development

Our objective is to enhance the capacity of our people to be effective • Behavioral feedback
Our approach towards
in leadership roles. Our leadership development initiatives are • Work experience and rotational assignments
aligned with our strategy and we offer development opportunities • Develop executive skill sets
-Creating internal and external equity -Organizational change management
that are tailored to the individual employee. Our leadership • Provide one another with high-value constructive feedback
-Employee engagement -Digitizing the workforce development approach consists of the following steps: • Enhance interpersonal communication
• Identification of potential leaders • Break down functional silos
Creating internal and external equity: Prioritizing fair pay environment and proper communication channels for our
• Future leader development program • Tackle real-world challenges in real time
and closing the pay gap are two of the biggest continuous people to discuss the issues they are dealing with. That is why
initiatives of eblHR. Implementing processes to sustain fair pay we have been regularly examining our employees' well-being
throughout the employee’s journey from hiring to promotion is and offered solutions that support a healthy work-life balance.
crucial for EBL. We are using industry and specific market data Performance management
to establish appropriate salary ranges for each position. And, Organizational change management: In 2020, our focus was
we believe in equal pay for equal work within the Bank. Jobs of connecting people. We have helped our employees manage
comparable value are assigned to the same grade range, and Our employer branding strategy in 2020
their challenges and adopt a new way of working to enable
the range of pay is the same for those jobs, which promotes them to stay productive. We have tried to help them address
Performance appraisal: Our performance appraisal good blend of both short term and long term benefits. We
equity. This assures that employees within EBL are paid fairly. social distancing challenges, working in a remote environment,
method is participative, where line managers and job take good care of our new hires and motivate them to stay
or managing virtual meetings and conference calls.
holders together identify, plan, organize, and communicate with the Bank for a longer time.
Employee engagement: We have tried to keep our employees
objectives to focus on during a specific appraisal period. End service benefits: We provide competitive end
engaged through learning and development activities during Digitizing the workforce: The year 2020 made us think deeply
After setting clear goals, line managers and job holders service benefits including provident fund, gratuity,
the lockdown. We have arranged webinars, e-learning and self- whether our workforce is future-ready. Therefore we have
certification programs. Moreover, we have arranged weekly quarterly evaluate and discuss the progress made. We superannuation and leave encashment.
identified competencies such as agility, problem-solving,
alignment session, team meet-ups, entire team gathering help our employees to identify their contribution towards
adaptability, creativity, and collaboration to ensure we have a Subsidized loan benefits: We provide employee car loan
over video conference, short online game session, virtual the growth of the Bank. This year, we have introduced
digitally enabled workforce. We have been partnering with our at zero percent interest rate. Our salary loan, provident
challenges and competitions, five minutes of informal talk, behavioral rating to identify people's needs to improve
people leaders to create effective learning and development fund loan and housing loan are given at a subsidized rate.
online courses, brainstorming, apology and appreciation programs that help employees clearly understand the benefits of behavioral competencies and soft skills.
Reimbursable expenses: Our reimbursable expenses
session, communication exercise etc. for employee engagement digital technologies and learn how to use them to improve their Remuneration policy: Our remuneration policy is formal
are two types in general. First of those are business
and motivation. We have tried to understand the stress level workflow. This training focuses not only on the technical aspects and transparent, helping us determine the remuneration
characters that are employees incurring expenses for
of personnel during this difficult time; we established an open but also on soft skills such as innovation, creativity, and agility. packages of individual. Our objective is to ensure the ability
business needs such as travel expenses, customer
to attract and retain talents. EBL remuneration policy entertainment, mobile phone bills, etc. The second type
is built upon the principles of providing equitable and is mostly reimbursing employees learning initiatives that
market-competitive remuneration package that supports will help them deliver the job better.
Talent attraction the performance culture and enables the achievement
Professional and club subscriptions: eblHR policy
of strategic business goals. Our remuneration policy is,
supports professional membership and club
therefore, aiming at being competitive but not excessive.
Our employer branding strategy in 2020 subscriptions. Professional memberships are provided to
Rewards & benefits: Our reward policy is competency- attract and retain people with professional qualifications
• Increased presence in digital space (webinar, facebook live • We have good number of career related roadshows for the
based and performance-driven. No matter where they and help them maintain their network with the people
etc.) to keep the future candidate assured about the mental, leading universities in Bangladesh.
are – a top performer will be rewarded from any corner of in the same profession. Club memberships are more
physical and emotional health support which are being given Criteria for selecting new employee the Bank. We reward for both financial and non-financial of a business nature; the objective is to provide club
at EBL for its employees during the pandemic. achievements. And our reward scheme consists of both membership facilities to remain connected with the
• Attitude is more important than skill
• Re-designed job postings to reflect our COVID-19 action plan. monetary and non-monetary awards. Our benefits are a business community.
• Ability to handle digital communication platform
• We have been highlighting the long-term career growth op- • What value the individual may bring to the organization
portunities in EBL. • Culturally fit

176 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 177
 Management Discussion and Analysis
Equal opportunity, career progression & diversity Grievance management

At EBL-equity in the workplace is characterized by We have a well-written grievance management policy. We also have speak up policy and harassment committee. By combining all these, we try to
protect employee rights backed by our code of conduct and service excellence guidelines. Our grievance management approaches are as follows:

A diverse productive A more equitable An inclusive A work environment free A level playing field for
workforce and accessible work environment where all from discrimination employee success Quick action Acknowledging grievance Gathering facts
environment employees are valued As soon as the grievance arises, we try to We acknowledge the grievance We gather appropriate and sufficient
identify and resolve the grievance. immediately to create a conducive work facts explaining the grievance’s nature.
environment with instances of grievance A record of such facts is maintained so
Equal employment opportunity diversity. Our diversity dimensions include but are not limited reduced. that these can be used in later stage of
to age, ethnicity, gender, physical abilities/qualities, race, sexual grievance handling procedure.
We provide equal employment opportunity, which means our orientation, educational background, geographic location, income,
employment practices ensure non-discrimination irrespective marital status, military experience, parental status, religious
of race, color, national origin, sex, sexual orientation, gender beliefs, work experience and job classification.
identity, physical or mental ability, religion, marital status, or age.
The principle lies that everyone should have the same access to Work-life balance
Examining the causes of grievance Decision making Execution and review
opportunities in the workplace.
We took following steps to ensure our employees maintain good We try to identify the actual cause of the After identifying the causes of grievance, Then we execute the decision quickly.
Career progression work-life balance. grievance. Accordingly, remedial actions we decide on the course of action in com- After implementing the decision, we
are taken to prevent the repetition of the pliance with the Bank’s policy. conduct a follow-up to ensure that the
We have set a career path for all the jobs. A jobholder performing • Our people set their daily priorities in the morning huddle to grievance. grievance has been resolved completely.
at the benchmark level is expected to have a fast track career at finish the day’s job on time.
EBL. Our approach to employees’ career progression is totally
• We trained our people on effective time management and
performance-based. We evaluate both financial and non-financial
prioritization.
contributions and value both business and non-business
• We have employee wellness program for the well-being of our Way forward
contributions of the employee.
people.
Diversity • Ensure the workforce has the skills needed for the future.
• We encourage our people to speak up, and we value their
opinion. • Equip leaders for success with ever-expanding demands.
We embrace diversity, which means we have a comprehensive
organizational and managerial process for developing an • We facilitate job rotation and recognize our employees’ • Organizational design for top performance and cost rationalization.
environment that maximizes all employees' potential by valuing achievements. • Blending the learning experience with virtual reality.

Succession planning

Our succession planning is a focused process for keeping talent in the pipeline. Effective job design, varied internal development opportunities
and smart organizational structure are the important features we practice to support succession planning process. Our approach towards
well-designed succession planning is as follows:

• Adapting to demographic changes. • Boosting morale and retention by investing in employees.

• Identifying skill gaps and training needs. • Replacing unique or highly specialized competencies.
• Retaining institutional knowledge in a knowledge-based economy.

Retention strategy

Our people retention strategy is very simple. We are hiring the maintain good work-life balance. We believe in “speak-up” policy
right people and shaping their growth and development. We and provide excellent leadership opportunities. We have a strong
have developed a good orientation program and encouraged performance driven culture. We also look after employees’ wellness
open communication. We have excellent reward package and we and ensure better ‘end service benefits’ for long time employees.

178 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 179
Employee Engagement Programs During COVID 19
ICT: The Enabler of Accelerated Digital Transformation

Management Discussion and Analysis

Technological innovations are growing exponentially. As a visionary towards using digital channels. ICT Team has meaningfully reflected
Bank, EBL continuously looks out for technological innovations that customer expectations about how they want to interact with the Bank.
act as enablers to increase revenue by ensuring customer delight, Additionally, to provide customers with the comfort and reliability to
improving operational efficiency and reducing service time. Being use digital channels for transactions, our all-out effort to maintain
heavily defined by COVID-19 pandemic, the year 2020 has radically transactional security was undefeated. It is because of timely
changed the way people think and act, resulting in a sudden aversion adoption of technological solutions to work from home, employees at
amongst customers to visit branches and develop inclination EBL were less exposed to coronavirus contractions.

Our Managing Director & CEO addressed People Management and COVID awareness eblHR thanks heroes of the pandemic. Performance highlights in 2020
issues during the session.

• Skybanking Web version • Virtual Annual General Meeting

• Home-office facility for every EBL staff • Development of IT security & risk dashboard
• PCI DSS recertification for the year 2020 • e-KYC
• ISO 27001 recertification • CTR, STR, Name Screening and TP through AML Solution
• UnionPay debit and prepaid issuing • Virtual Account Solution
• Contact Center migration • Global Payment Initiative (GPI) implementation in SWIFT
• FD/DPS opening through EBL Self Service • Robotic Process Automation of EoD Processes

Celebrating 16th work anniversary of our Managing Director & CEO. “EBL Foundation Training" arranged for our new joiners on digital platform.
Our approach towards managing ICT risk

As the usage of digital touch-points shot up during COVID-19 Several detective controls, i.e., Security Information and Event
pandemic, so did the number of cyber-attacks and threats. We Management (SIEM), Privilege Access Management (PAM) are
remained particularly vigilant while we launched diverse projects working together to aggregate network traffic logs and we monitor
to accommodate both the emerging needs of customers and the them to keep an eye on communication channels, applications,
mandates of regulatory authorities. Every hardware device that has databases and systems.
been brought in, has been hardened. Vulnerability Assessment and
We have achieved PCI-DSS certification for consecutive five years
Penetration Testing (VAPT) has been done thoroughly to determine in recognition of our constant effort to minimize vulnerabilities in
flaws and exploitable weakness before every release of a software cardholder data domain, which provides our customers with a peace
solution. To protect the information assets of EBL from external of mind reliability for using our payment cards. Our achievement
Celebrating 28th anniversary of EBL on 16 August 2020. Wellness session on “Positive Parenting during COVID pandemic" by Dr Farzana threats, we have put several preventive controls in place, i.e., Next- of ISO/IEC 27001:2013 certification for the second time in a row
Islam, Specialist & Head, Child Development Centre, Evercare Hospital, Dhaka.
generation Firewall, Network Intrusion Prevention System (NIPS), recognizes our compliance with Information Security Management
Adaptive Security Appliance (ASA), Endpoint Security, Intrusion Systems (ISMS), a risk management framework developed jointly
Prevention System (IPS)/ Intrusion Detection System (IDS), etc. by ISO and IEC.

Way forward

COVID-19 crisis will continue to be on top of the list of challenges of the banking business strategy for the year 2021. Keeping that
in mind, we will focus on technology maneuvers concerning revenue-generation to minimize customer foot-prints in branches and
prioritizing cybersecurity at the same time since experts say we are still few more years away from going back to normal life from this
on-going pandemic. Our endeavour to achieve inter-organization process improvement by using Robotic Process Automation (RPA),
Application Programming Interfaces (API), and accelerating the trend from manual to digital will also continue.
Facebook live ÒC` AvÇvÓ with the winners of different programs of EBL. Congratulating the longest-serving MD & CEO of the Bank, Ali Reza Iftekhar.

180 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 181
A Digital Journey to Service Excellence

Management Discussion and Analysis

Management of customer grievances
The year 2020 taught us to be resilient, adaptive, innovative and positive in the face of adversity. Keeping service excellence locked in the
heart of the bank, EBL geared heavily towards deploying digital platforms to remain connected with customers maintaining social distancing. In the year 2020, that was extraordinarily challenging in terms
of ensuring service excellence, a total of 1,897 complaints were
Customer feedback
received directly from customers and regulatory bodies; all were
successfully resolved.

Nothing inspires better than a delighted customer’s appreciation – the primary goal of any business entity. Despite all odds, EBL has bagged EBL has a well-structured Central Customer Service & Complaint
few invaluable responses from its customers in the year 2020 which is worth mentioning. Management Cell (CCS & CMC) in place, the functionality of which
is approved by the Board of Directors and consists of high officials
In 2020, resolved all complaints that we received.
with necessary authority to take speedy actions for bringing prompt
I would like to give a huge commendation to my Relationship Manager at branch. He empathized resolution to the customer complaints.
and resolved my issue in the first place which is a great deal in customer service. He did what he
promised which is a significant part of customer service. I would recommend his service as world
class and this is a role model in customer service which should be followed by others rather than get
Saiful Azam away from the customers. Valuing customer feedback Strengthening ties with our customers
A client of EBL

Customers' feedback survey for EBL Skybanking app

119 awareness initiatives Relationship managers
were taken through social always stayed connected with
• To assess overall satisfaction and safety related to the usage of
I received a call about half an hour back from EBL Call Centre to inform me that my card has media platforms the clients looking after their
EBL Skybanking application
been activated. I was very impressed by her professionalism, clarity of expression and pleasant well-being as well as financial
personality. • 320 clients were reached to conduct digital survey needs during the pandemic.
Shahriar Ahmed
A client of EBL • Received positive response from majority customers with
recommendations for improvement

Response to COVID-19 pandemic Complainants’ feedback survey Strengthening

Revival of ties with our Monitoring credit
• To receive customer's feedback on bank's grievance
non-productive customers cards attrition
management process.
Uninterrupted customer support New initiatives taken to maintain service excellence accounts through through creating
• To assess the efficiency level of complaint management reaching out awareness at
Ensured customers’ voices were heard 24/7 by keeping EBL Contact E-KYC based account opening first in the banking process. virtually branches
Center awake at all times even during strictest lockdown period. industry
• To identify any lapses still prevailing in any of the existing
products and processes.
Self Service Hub for opening DPS & Fixed Deposit • 75 complainants/customers have been surveyed under this
Customer on-boarding to digital banking platform Schemes online study.
Encouraged customers to use wide range of digital platforms to
meet their daily financial needs without physical visit.  Insta-Banking for opening accounts digitally

Routes to reach EBL for sharing customers’ feedback or Way forward

Remote access lodging grievances
Channels Customers’ preferred actions 2020 provided us a stark reminder of the importance of adopting new technologies and called for process re-engineering and
Ensured email access and server connectivity for all employees in
digitalization of our existing products and services. As we enter 2021 we will prioritize to fine tune our processes to further enhance
order to respond to clients’ queries and resolve grievances (if any). Contact Center: 16230
24X7 Contact Center our customer satisfaction and intend to come up with new avenues for digitalization in order to remain competitive in the market.
As a result, not a single client suffered from unmet issues. Contact Center: 028332232
Branch Visiting branch or giving a call
Access website:
Website https://www.ebl.com.bd/regulatory/
Trained personnel complaintcell
ccs.cmc@ebl-bd.com
Provided training to employees for building awareness on relevant info@ebl-bd.com
E-mail
regulatory requirements, circulars and guidelines published during info@ebl.com.bd
pandemic, making them aware of internal processes and product cardsteam@ebl.com.bd
knowledge for ensuring accurate and timely service, mentoring Through EBL SKYBANKING app complain
Mobile application
can be raised or feedback can be given.
customers doing banking maintaining proper health codes and
social distancing. Letter Sending letter to: branch/Head office

182 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 183
Operational Excellence The year started with goals to improve customer experience, to pandemic. At the end of general holidays, the Bank sustained

Management Discussion and Analysis

streamline processes, and reduce costs in all areas of operations operational resilience by remodeling operational workflows to suit
through digitization and process simplification. The Bank’s pandemic style socio-economic climate. In Q3 of 2020, full scale
Amid global crisis, EBL left a footprint of innovation and numerous disruptions, EBL remained vigilant in delivering
priorities shifted when the country plunged into a global operations resumed; workaround strategies were implemented to
brilliance in serving external and internal customers while essential banking services. Operating models were re-engineered
crisis during Q2 of 2020. Formal crisis management team was deal with increased number of operational deliveries. Meanwhile,
ensuring compliance with internal and regulatory guidelines. using smart technologies as well as digital platforms were
established with clear action plan for quickly adapting to the EBL facilitated delivery of stimulus packages announced by
EBL Operations remained resilient while staying at the heart of adopted to address shifting consumer habits and reduce the need
changing socio economic climate. With a combination of rotational Bangladesh Government to support export oriented firms and
all processes and service deliveries throughout 2020. Despite for physical interaction.
work plan and work from home, EBL ensured operational delivery other industries. In Q4 of 2020, the Bank worked relentlessly
amidst disruption. Close liaison with regulatory authorities were for adapting to the “new normal” and worked towards business
Adaptability and resilience drives EBL Operations maintained to ensure compliance of ad-hoc directives related recovery amidst this economic downtrend.

Key business indicators of 2020

• Trade volume worth USD$3.80b processed in 2020. • 10k commercial remittances processed in 2020 which adds
• Cumulative volume of LCs valued at or over US$1m processed up to US$271m

85% throughout 2020 stood at US$644.70m which is 3.95% higher •

•
Processed Government Stimulus payroll payment of BDT 1.75b
Business Partner Identification (BP ID) in favor of individual/
Transaction and than previous year.

76% activity growth

compared to Q4, 2019
• Good number of Bank Guarantees valued at or over US$1m
institutional customers in Government Security Market
Module of Bangladesh Bank increased by 269%
Transaction and processed for a total volume of US$111.23m
• Money market and security transaction counts increased by
Q4
activity growth • Processed 173k Wage earners’ remittance of US$106m in 2020.
43% compared to Q3, 2019
“Catch up” • Cash incentive (2%) payment of BDT 186m against eligible •
39% from previous year
Number of reconciliation of FCY and LCY NOSTRO account
Transaction and
activity growth
Q3 Full Scale Operation wage earners’ remittances. increased by 34% compared to 2019

“Restart” • Shifted focus on the much

18% compared to Q2, 2019
Post General Holidays needed digitization of Other notable accomplishments

Transaction and
Q2 • Maintained operational
end-to-end processes
(where possible) to reduce
“Survival” resilience by remodeling
activity growth manual hand-off, reduce • Collaborated execution of export factoring solution in • Benchmark compliance of core security controls under
Essential Banking Services process flows to suit
compared to Q1, 2019 risk and improve customer partnership with Tradewind GmbH SWIFT Customer Securities Program (CSP)
pandemic climate
experience • Customers with valid email addresses are now in receipt of
• Scenario analysis and • Adoption of trade based money laundering (TBML) policies in
Q1 contingency planning to
ensure survival amidst
• Execution of stimulus
packages announced by
• Organized virtual meetings
with team members to
e-statements for credit cards instead of hardcopy compliance of BB guidelines
“Kick start” 2020 Begins Govt. to support export • Introduction of pre-renewal SMS alert to debit and credit • Implementation of “Velocity” – sanction screening application
global pandemic and help develop resilience
oriented firms and other
to changing business
cardholders for trade and remittance transactions
business disruption
• Focus remained in industries • Implementation of Government Securities windows at
environment • ISO 9001:2015 re-certification with no non-conformity -
maintaining seamless • Established formal crisis
• Delivered workaround branches
support for key business management team with • Above 25 key processes demonstration of continued effectiveness of operational
strategies for increasing
clear action plan for automated, above 40 core • Development of first of its kind e-KYC based account opening management systems
activities across all number of transactions and
quickly adapting in the processes have been
business segments hike in business volume
face of adversities re-engineered and above
• Constant monitoring • Reduced pre-pandemic 50 processed simplified Prioritizing customer experience
against committed service • Relentless service delivery
outstanding bills, to streamline operational
standards within limited capacity
payments and collections delivery
and scaled operation in
• Knowledge sharing sessions through continuous
compliance of Bangladesh • Established an adaptable, EBL Operations continued to work relentlessly to streamline respectively compared to 2019. First of its kind e-KYC based
held to develop and embed persuasion
Bank directives challenging and rewarding operational delivery for superior customer experience. The account opening and EBL Insta-Banking – a self-serviced
high performance culture • Implemented regulatory environment for staffs first step was to reduce the need for physical interaction and customer on-boarding system was introduced where customers
and drive continuous • Ensured essential services
relaxation measures on to boost adaptability and
improvement across the to sustain the socio- digitization. The Bank introduced FD/DPS opening through EBL can open a Bank Account immediately at anytime from anywhere,
foreign trade transactions creativity
Bank economic living condition Self Service Portal. Staffs from other work areas were directed by themselves, simply with their NID and photo taken using smart
e.g. extension of
of customers and other • Worked towards continued and engaged to help process a mounting influx of customer phone or other digital devices. Some other process simplifications
• Planned control check permissible period for
stakeholders compliance of ISO
programs to periodically repatriation of export requests for subscription to internet and mobile banking facility. were brought in to reduce turnaround time (TAT) for a number
9001:2015 standards
test the effectiveness of • Prioritized health and safety proceeds, tenure for Bill of The number of onboarding requests was 437% higher than of services including automated solution (SMS notification) for
— demonstration of
controls in place of both internal and external entry submission, EDF loan previous year. Focus was also given in facilitating e-commerce static data change, enhancement of applications to enable bulk
continued effectiveness of
customers by rolling out tenure, etc. and card acquiring transactions which grew by 220% and 123% processing.
• Upheld compliance operational management
precautionary measures
standards systems
across the country

184 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 185
 Management Discussion and Analysis
Automations and system enhancements for faster operational delivery Way forward

In order to improve delivery lead time, a host of automation projects were implemented in all operational areas to reduce manual We look forward to adding more value in 2021. Optimizing costs, improving quality of operational deliveries, enhancing customer
intervention, so that additional staff resources could be deployed in supporting business needs. experience, establishing stringent controls and improving readiness to crisis scenarios will take priorities in 2021.

• Automated tracking of customer records update requests • Automated and real-time journal entries against ATM Digitization and Customer Cost rationalization Risk mitigation
automation experience
withdrawals Elimination of non- Implement technology-
• SMS notification after execution of customer record update Process simplification Streamline service delivery value added steps and enabled risk mitigation
requests through automation overlapping processes tools and strategies
• Enhancement of card systems to enable bulk processing of Improve responsiveness to
Technology adaptation with queries Resource optimization and Efficient and clean record
• Automated service requests for card cheque requisition new card enrollments changing customer habits cost controls keeping
Eliminate pain points
and supplementary cards • Automated VAT collection against specific types of cross- Instil culture of creative Electronic channels for Readiness to handle crisis
Maintain quality standards
thinking and innovative operational deliveries
• Implementation of SWIFT GPI basic tracker facility border online transactions idea generation
• Automated single fund pull through electronic fund transfer • New card enrollment process automated for prepaid and
network under Bangladesh Automated Clearing House (BACH II) debit cards
• Automation of inward remittance intimation and reminder letter • Customers with valid email addresses are now in receipt
• Automation of issuance of encashment certificate against of e-statements for credit cards instead of hard copy
inward remittance statements.

• Reduced non-value added steps • Increased processing speed

• Reduced processing complexity
• Improved processing standard
• Reduced delivery lead time
• Improved turnaround time (TAT) • Efficient and clean record keeping

Managing operational risks in 2020

Operational risks became an area of crucial interest during pandemic. Failures in internal controls, lapses in operational processes,
limitations in systems, errors, breaches, and interruption or damages were carefully managed by focusing on four broad aspects:

• People: Regular knowledge sharing sessions with stakeholders Attainment of benchmark compliance to core security controls
and periodic meetings with cross-functional departments of SWIFT Customer Securities Program (CSP) and successful
were conducted to identify and mitigate risk triggers. PCI-DSS (Payment Card Industry Data Security Standard)
recertification were instances of those measures.
• Process: Operational controls were revisited and strengthened
• Regulation: With the rise in number and complexity of policies
where appropriate to strengthen overall risk resilience of the
and rules that Banks must comply, EBL continued to invest in
Bank.
trainings and embrace policies, procedures and systems that
• Systems and tools: The Bank continued to take steps to foster compliance. Among many other tools, AML velocity was
prevent losses arising from system hacks and data losses. adapted to combat AML & CFT risks.

Operational quality assurance (QA) in 2020

The Bank put rigorous efforts to sustain quality in all deliveries functional departments were held to improve service quality
throughout 2020. Surveillance audit of ISO 9001:2015 and reduce operational shortcomings. 58 branch feedback
persistently exhibits continued effectiveness of EBL’s sessions covering 34 branches were also conducted to build
operational management systems. Regular knowledge sharing up rapport, improve delivery standards and ensure processing
sessions with stakeholders and monthly meeting with cross- efficiency.

186 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 187
 FINANCIAL Statement on Integrity of Financial Statements by MD &

Financial Reports
CEO and CFO
11 April 2021

FINANCIAL
REPORTS REPORTS
The Board of Directors
Eastern Bank Limited
100 Gulshan Avenue
Dhaka -1212.

Subject: Declaration on Financial Statements for the year ended on 31 December 2020

Dear Sirs,

Pursuant to the condition No. 1(5) (xxvi) imposed vide the Commission’s Notification No. BSEC/CMRRCD/2006-158/207/Admin/80, dated 03
June 2018 under section 2CC of the Securities and Exchange Ordinance, 1969, we do hereby declare that:

(1) The Financial Statements of Eastern Bank Limited for the year ended on 31 December 2020 have been prepared in compliance with
International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS), as applicable in the Bangladesh and any
departure there from has been adequately disclosed;

(2) The estimates and judgments related to the financial statements were made on a prudent and reasonable basis, in order for the financial
statements to reveal a true and fair view;

(3) The form and substance of transactions and the Company’s state of affairs have been reasonably and fairly presented in its financial
statements;

(4) To ensure above, the Company has taken proper and adequate care in installing a system of internal control and maintenance of
accounting records;

(5) Our internal auditors have conducted periodic audits to provide reasonable assurance that the established policies and procedures of the
Company were consistently followed; and

(6) The management’s use of the going concern basis of accounting in preparing the financial statements is appropriate and there exists
no material uncertainty related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern.

In this regard, we also certify that:

i. We have reviewed the financial statements for the year ended on 31 December 2020 and that to the best of our knowledge and belief:

(a) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be
misleading;

(b) these statements collectively present true and fair view of the Company’s affairs and are in compliance with existing accounting
standards and applicable laws.

ii. There are, to the best of knowledge and belief, no transactions entered into by the Company during the year which are fraudulent, illegal
or in violation of the code of conduct for the company’s Board of Directors or its members.

Sincerely yours,

Ali Reza Iftekhar Masudul Hoque Sardar

Managing Director & CEO Chief Financial Officer

188 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 189
 Gulshan Pink City
Suites# 01-03, Level : 7
Plot#15, Road#103
Gulshan Avenue
Since 1953
Dhaka-1212, Bangladesh

Financial Reports
Since 1953 Phone : 880-2-8881824-6
E-mail : aqasem@aqcbd.com
Key audit matter How our audit addressed the key audit matter

Independent auditor’s report Measurement of provision for loans and advances

to the shareholders of Eastern Bank Limited With reference to Note 13.4 to the financial statements, the process We tested the design and operating effectiveness of key controls
for calculating the provision for loans and advances portfolio focusing on the following:
associated with credit risk is significant and complex. The bank
Report on the audit of the consolidated and separate financial statements  Tested the credit appraisal, loan disbursement procedures,
calculates provision for loans and advances by considering
monitoring and provisioning process;
Opinion various factors such as rate of provision, loan category, expiry date,
outstanding balance, interest suspense amount, value of eligible  Tested the controls related to provision for loans and advances;
We have audited the consolidated financial statements of Eastern Bank Limited and its subsidiaries (the “Group”) as well as the separate collateral as per BRPD circular no. 14 dated 23 September 2012 and
financial statements of Eastern Bank Limited (the “Bank”), which comprise the consolidated and separate balance sheet as at 31 December its subsequent amendments. Our substantive procedures in relation to the provision for loans and
2020, and the consolidated and separate profit and loss account, consolidated and separate statement of changes in equity and consolidated advances portfolio comprised the following:
and separate cash flow statement for the year then ended, and notes to the consolidated and separate financial statements, including a To minimize covid 19 impact, Bangladesh Bank issued BRPD
Circular Letter No. 56 and 117 dated 10 December 2020 and 5  Tested the Group and the Bank’s general and specific provisions;
summary of significant accounting policies.
January 2021. According to the circular, commercial bank must
 Assessed quarterly classification ledger of loans and advances (CL);
keep an extra 1% (percent) provision for those borrowers who have
In our opinion, the accompanying consolidated financial statements of the Group and separate financial statements of the Bank (the
availed payment by deferral (PBD) facilities. The calculation of the  Assessed the methodologies on which the provision amounts
“financial statements”) give a true and fair view of the consolidated balance sheet of the Group and the separate balance sheet of the Bank
new provisioning rule will have to be implemented based on the based, recalculated the provisions and tested the completeness
as at 31 December 2020, and of its consolidated and separate profit and loss accounts, consolidated and separate statement of changes in
outstanding (deferral payment) loans as of 31 December 2020. The and accuracy of the underlying information;
equity and its consolidated and separate cash flow statement for the year then ended in accordance with International Financial Reporting
Bank has kept this special provision of BDT 602.39 million as per
Standards (IFRSs) as explained in note # 2 and comply with the Banking Companies Act, 1991 (as amended up to date), the Companies Act,  Assessed covid provision according to BRPD circular.
the circular.
1994, the rules and regulations issued by the Bangladesh Bank, the rules and regulations issued by the Bangladesh Securities & Exchange
Commission (BSEC) and other applicable laws and regulations. Assessed the presentation of disclosures against relevant accounting
In Bangladesh, non-performing loans have been increasing day
standards and Bangladesh Bank guidelines.
by day. Banks need to maintain provision for additional non-
Basis for opinion performing loans in line with guidelines of the central bank. The
Bank identifies impaired loan accounts and calculates required
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are provision manually. Furthermore, management has incentive to
further described in the auditor’s responsibilities for the audit of the consolidated and separate financial statements section of our report. maintain lower provision for loan and advances to overstate profit.
We are independent of the Group and the Bank in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics
for Professional Accountants (IESBA Code), rules & regulations issued by Bangladesh Bank and Bangladesh Securities and Exchange Considering these factors, we have considered measurement of
Commission (BSEC), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code and the Institute of Chartered provision for loans and advances as significant risk as well as a key
Accountants of Bangladesh (ICAB) Bye-laws. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a audit matter.
basis for our opinion.
At year end of 2020 the Group reported total gross loans and
Key audit matters advances of BDT 230.54 billion (2019: BDT 239.09 billion) and in
2020 the Bank reported total gross loans and advances of BDT
Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the financial statements for 228.94 billion (2019: BDT 232.05 billion) whereas at the year end
the financial year 2020. These matters were addressed in the context of the audit of the financial statements, and in forming the auditor’s of 2020 the Group reported total provision for loans and advances
opinion thereon, and we do not provide a separate opinion on these matters. For each matter described below our description of how our of BDT 11.42 billion (2019: BDT 9.44 billion) and the Bank reported
audit addressed the matter is provided in that context. total provision for loans and advances of BDT 11.18 billion (2019:
BDT 9.36 billion).
We have fulfilled the responsibilities described in the auditor’s responsibilities for the audit of the financial statements section of our report,
including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment 02. Measurement of deferred tax assets
of the risks of material misstatements of the financial statements. These results of our audit procedures, including the procedures performed At the year ended 2020 the Group reported total deferred tax assets We obtained an understanding, evaluated the design and tested
to address the matters below, provide the basis for our audit opinion on the accompanying financial statements. of BDT 2.150 billion (2019: BDT 1.875 billion) and deferred tax the operational effectiveness of the Bank’s key controls over the
income of BDT 149.58 million (2019: BDT 664.46 million) and the recognition and measurement of deferred tax assets and the
Bank reported total deferred tax assets of BDT 2.053 billion (2019: assumptions used in estimating the Group and the Bank’s future
BDT 1.875 billion) and deferred tax income of BDT 52.45 million taxable income.
(2019: BDT 664.46 million).
We also assessed the completeness and accuracy of the data used for
Significant judgment is required in relation to deferred tax assets as the estimations of future taxable income.
their recoverability is dependent on forecasts of future profitability
We involved tax specialists to assess key assumptions, controls,
over a number of years.
recognition and measurement of deferred tax assets.

Finally assessed the appropriateness and presentation of disclosures

against IAS 12: Income Tax.

See note no 9.10 & 38 to the financial statements

190 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 191
 Since 1953 Since 1953

Financial Reports
We communicate with those charged with governance, among other matters, the planned scope and timing of the audit and significant audit
Other information
findings, including any significant deficiencies in internal control that we identify during our audit.
Management is responsible for the other information. The other information comprises all of the information in the annual report other
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
than the financial statements and our auditor’s report thereon. The annual report is expected to be made available to us after the date of this
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
auditor’s report.
and where applicable, related safeguards.
Our opinion on the financial statements does not cover other information and we do not express any form of assurance conclusion thereon.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the
In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s
available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a
obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh
material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. the public interest benefits of such communication.
Responsibilities of management and those charged with governance for the consolidated and separate financial statements and internal controls Report on other legal and regulatory requirements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial In accordance with the Companies Act, 1994, the Banking Companies Act, 1991, and the rules and regulations issued by Bangladesh Bank,
Reporting Standards (IFRSs) as explained in note # 2 and comply with the Banking Companies Act, 1991 (as amended up to date), the the Securities and Exchange Rules 1987, we also report that:
Companies Act, 1994, the Rules and Regulations issued by the Bangladesh Bank, the Rules and Regulations issued by the Bangladesh
I. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes
Securities & Exchange Commission (BSEC) and other applicable Laws and Regulations and for such internal control as management
of our audit and made due verification thereof;
determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or
error. The Banking Companies Act, 1991 (as amended up to date) and the Bangladesh Bank guidelines require the management to ensure II. to the extent noted during the course of our audit work performed on the basis stated under the Auditor’s Responsibility section in
effective internal audit, internal control and risk management functions of the Bank. The management is also required to make a self- forming the above opinion on the financial statements and considering the reports of the Management to Bangladesh Bank on anti-fraud
assessment on the effectiveness of anti-fraud internal controls and report to Bangladesh Bank on instances of fraud and forgeries. internal controls and instances of fraud and forgeries as stated under the Management’s Responsibility for the financial statements and
internal control:
In preparing the financial statements, management is responsible for assessing the Group’s and the Bank’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management (a) internal audit, internal control and risk management arrangements of the Group and the Bank as disclosed in the financial
either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so. statements appeared to be materially adequate;

Those charged with governance are responsible for overseeing the Group’s and the Bank’s financial reporting process. (b) nothing has come to our attention regarding material instances of forgery or irregularity or administrative error and exception or
anything detrimental committed by employees of the Group and the Bank;
Auditor’s responsibilities for the audit of the consolidated and separate financial statements
III. financial statements of Eastern Bank Limited's subsidiaries namely, EBL Securities Limited, EBL Investments Limited and EBL Asset
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
Management Limited have been audited by ACNABIN, Chartered Accountants and EBL Finance (HK) Limited has been audited by
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
Kingston C.P.A. Limited, Certified Public Accountants, Hong Kong and have been properly reflected in the consolidated financial
is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements
statements;
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements. IV. in our opinion, proper books of account as required by law have been kept by the Group and the Bank so far as it appeared from our
examination of those books;
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit.
We also: V. the consolidated balance sheet and consolidated profit and loss account of the Group and the separate balance sheet and separate profit
and loss account of the Bank together with the annexed notes dealt with by the report are in agreement with the books of account and
 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
returns;
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve VI. the expenditures incurred and payments made were for the purpose of the Group’s and Bank’s business for the year;
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. VII. the financial statements have been drawn up in conformity with prevailing rules, regulations and accounting standards as well as
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the related guidance issued by Bangladesh Bank;
circumstances. VIII. adequate provisions have been made for advance and other assets which are in our opinion, doubtful of recovery;
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made IX. the records and statements submitted by the branches have been properly maintained and consolidated in the financial statements;
by management.
X. the information and explanations required by us have been received and found satisfactory;
 Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the XI. we have reviewed over 80% of the risk weighted assets of the Bank and spent over 3,800 man hours; and
Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our XII. capital to risk-weighted assets ratio (CRAR) as required by Bangladesh Bank has been maintained adequately during the year.
auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may A. Qasem & Co.
Place of Issue: Dhaka
cause the Group and the Bank to cease to continue as a going concern. Chartered Accountants
Dated: 12 April 2021
 Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial Registration No: PF 1015
statements represent the underlying transactions and events in a manner that achieves fair presentation.
 Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group Mohammed Hamidul Islam
and the Bank to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of Partner
the Group’s and Bank’s audit. We remain solely responsible for our audit opinion. Enrolment No: 912
DVC No: 2104120912AS840301

192 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 193
Consolidated & Separate Financial Statements

Eastern Bank Limited and its subsidiaries Eastern Bank Limited and its subsidiaries

Financial Reports
Consolidated Balance Sheet Consolidated Balance Sheet
as at 31 December 2020 Amount in BDT as at 31 December 2020 Amount in BDT

Notes 2020 2019 Notes 2020 2019

PROPERTY AND ASSETS OFF BALANCE SHEET ITEMS
Contingent liabilities 21
Cash 3 Acceptances and endorsements 21.1 42,593,184,478 45,008,741,219
Cash in hand (including foreign currencies) 3.1 3,218,511,774 3,088,367,831 Letters of guarantees 21.2 27,229,615,956 23,321,243,725
Balances with Bangladesh Bank and its agent bank(s) (including foreign currencies) 3.2 12,480,410,176 16,601,918,975 Irrevocable letters of credit 21.3 26,084,696,594 23,139,697,761
15,698,921,950 19,690,286,806 Bills for collection 21.4 8,032,352,776 7,963,765,179
Other liabilities - -
Balances with other banks and financial institutions 4 103,939,849,804 99,433,447,884
In Bangladesh 4.1 12,728,955,557 19,963,271,483 Other commitments
Outside Bangladesh 4.2 664,331,924 4,405,925,232 Documentary credits and short term trade-related transactions - -
13,393,287,481 24,369,196,715 Forward assets purchased and forward deposits placed 21.5 120,428,481 347,552,793
Undrawn note issuance and revolving underwriting facilities - -
Money at call and short notice 5 60,000,000 594,300,000 Undrawn formal standby facilities, credit lines and other commitments - -
Investments 6 120,428,481 347,552,793
Government 6.1 50,517,783,115 31,927,657,257 TOTAL OFF-BALANCE SHEET ITEMS 104,060,278,285 99,781,000,677
Others 6.2 15,498,577,951 10,138,813,514
66,016,361,066 42,066,470,771 These financial statements should be read in conjunction with the annexed notes.

Loans and advances 7

Loans, cash credits, overdraft etc. 7.1 212,083,018,369 218,070,540,410
Bills discounted and purchased 7.2 18,462,037,803 21,024,167,598 Signed as per our annexed report of same date
230,545,056,172 239,094,708,008

Fixed assets including land, building, furniture and fixtures 8 7,772,646,970 7,407,132,303
Other assets 9 5,916,516,734 4,869,888,925 Ali Reza Iftekhar Gazi Md. Shakhawat Hossain A. Qasem & Co.
Non banking assets 10 105,576,495 108,736,495 Managing Director & CEO Director Chartered Accountants
Registration No: PF 1015
TOTAL ASSETS 339,508,366,868 338,200,720,022

LIABILITIES AND CAPITAL

Borrowing from banks, financial institutions and agents 11 Mohammed Hamidul Islam
Salina Ali Mir Nasir Hossain
Non-convertible subordinated bond 11.1.a 6,000,000,000 6,500,000,000 Partner
Borrowing from other Banks, FIs, Agents etc. 40,281,080,617 46,348,235,988 Director Director
Enrolment No: 912
46,281,080,617 52,848,235,988
DVC No: 2104120912AS840301
Deposits and other accounts 12
Current deposits & other accounts, etc. 12.1 27,698,304,935 24,837,018,432 Place of Issue: Dhaka
Bills payable 12.2 1,492,231,668 1,131,830,685 Dated: 12 April 2021
Savings bank deposits 12.3 63,784,873,554 50,214,304,541
Fixed deposits 12.4 111,289,608,129 131,735,401,586
Other deposits- special notice (SND) account 37,030,361,579 32,061,412,240
Bearer certificates of deposits 12.5 - -
241,295,379,865 239,979,967,484

Other liabilities 13 22,482,811,081 19,410,763,266

TOTAL LIABILITIES 310,059,271,563 312,238,966,738

SHAREHOLDERS' EQUITY
Paid-up capital 14 8,117,995,470 8,117,995,470
Statutory reserve 15 8,117,995,470 8,117,995,470
Dividend equalisation reserve 16 356,040,000 356,040,000
Assets revaluation reserve (Lands and others) 17 3,492,079,880 2,758,085,527
General reserve 603,493,370 603,493,370
Actuarial remeasurement gain/(loss) 18 (209,986,563) -
Foreign currency translation gain/(loss) 19 2,405,658 5,365,748
Surplus in profit and loss account 20 8,969,072,019 6,002,777,699
TOTAL SHAREHOLDERS' EQUITY 29,449,095,305 25,961,753,284
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 339,508,366,868 338,200,720,022

194 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 195
Eastern Bank Limited and its subsidiaries Eastern Bank Limited and its subsidiaries

Consolidated Profit and Loss Account Consolidated Cash Flow Statement

Financial Reports
for the year ended 31 December 2020 Amount in BDT for the year ended 31 December 2020 Amount in BDT

Particulars Notes 2020 2019 Notes 2020 2019

Interest income 22 20,011,368,328 23,583,269,636 A) Cash flows from operating activities

Interest paid on deposits and borrowings 23 (13,959,493,913) (15,306,369,064) Interest receipts in cash 18,524,486,123 23,102,781,408
Net interest income 6,051,874,415 8,276,900,572 Interest payments (15,396,039,685) (14,130,563,008)
Income from investments 24 5,101,545,522 2,699,084,429 Dividend receipts 153,019,086 166,905,205
Fees, commission and brokerage 25 3,067,368,036 3,785,461,173 Fees and commission receipts in cash 2,954,139,616 3,746,487,786
Other operating income 26 345,885,248 258,386,812 Income from investment (other than dividend received) 4,518,552,742 2,391,733,141
Recoveries on loans previously written off 13.4.1 725,759,332 635,666,487
8,514,798,806 6,742,932,414
Cash payment to employees (including directors) (4,060,915,412) (3,834,141,757)
Total operating income 14,566,673,221 15,019,832,985
Cash payment to suppliers (1,228,511,398) (1,512,903,210)
Salary & allowances (excluding those of MD) 27 4,073,299,849 3,895,272,859 Income taxes paid 13.3.2 (3,690,357,073) (1,739,041,304)
Rent, taxes, insurance, utilities etc. 28 440,047,713 615,896,173 Receipts from other operating activities 345,885,248 258,386,812
Legal & professional expenses 29 64,899,448 118,015,990 Payments for other operating activities (614,810,771) (695,313,413)
Postage, stamp, telecommunication etc. 30 138,968,011 145,322,841 Cash from operating profit before changes in operating assets and liabilities 2,231,207,807 8,389,998,147
Stationery, printing, advertisement, business promotion etc. 31 296,837,619 358,335,602 Increase/(decrease) in Operating Assets & Liabilities
Managing Director's salary and allowances (Bank only) 32 26,328,372 24,618,065 (Purchase-net) of trading securities (10,558,729,038) (8,685,063,525)
Directors' fees & expenses 33 3,179,506 5,144,029 Loans and advances to customers (other than banks) 10,227,596,106 (21,382,230,138)
Audit fees 34 2,472,615 2,344,092 Other assets 40 (694,487,760) (910,559,581)
Depreciation and repair of bank's assets 35 1,010,715,838 781,598,098 Deposits from other Banks 12.b.1 (1,786,223,237) (4,172,637,504)
Other operating expenses 36 614,810,771 695,313,413 Deposits from customers (other than banks) 4,289,418,612 43,837,336,146
Total operating expenses 6,671,559,742 6,641,861,161 Liability for tax 1,130,728,886 (613,923,734)
Profit before provisions 7,895,113,479 8,377,971,824 Liabilities for provision (1,880,863,607) (2,670,279,943)
Other liabilities 41 3,066,459,100 5,398,474,549
Provision for loans and off-balance sheet exposures: 13.4.1 Cash generated from operating assets and liabilities 3,793,899,062 10,801,116,270
Specific provision (net off w/o recovery) 928,245,166 1,254,816,341 Net Cash received from operating activities 6,025,106,869 19,191,114,417
General provision for loans & advances (293,454,371) 174,331,665 B) Cash flows from investing activities
Special general provision for Covid 19 602,388,520 - (Purchase-net) of non-trading securities (12,655,242,003) (3,402,335,600)
General provision for off balance sheet exposures 19,415,553 (117,854,862) (Purchase-net) of property, plant and equipment (1,088,471,897) (1,231,425,798)
1,256,594,868 1,311,293,145 Net cash (used in) investing activities (13,743,713,900) (4,633,761,398)
Other provision 37 (101,490,592) 723,320,311 C) Cash flows from financing activities
Total provisions 1,155,104,276 2,034,613,456 Borrowings from banks, financial institutions and agents (6,567,155,371) 3,782,140,342
Profit before tax for the year 6,740,009,203 6,343,358,369 Dividend paid (cash dividend) (1,217,699,321) (1,475,999,178)
Net cash (used in) / received from financing activities (7,784,854,692) 2,306,141,164
Current tax expense for the year 13.3.1 2,709,205,926 3,017,426,997
D) Net (decrease) / increase in cash (A+B+C) (15,503,461,723) 16,863,494,183
Deferred tax income (net) 38 (149,577,739) (664,461,960)
E) Effects of exchange rate changes on cash and cash equivalents 652,535 6,907,889
Total provision for taxation 2,559,628,187 2,352,965,037
F) Opening cash and cash-equivalents 44,658,148,121 27,787,746,049
Profit after tax for the year 4,180,381,016 3,990,393,333 G) Closing cash and cash-equivalents (D+E+F)* 29,155,338,932 44,658,148,121
Appropriation
Statutory reserve 15 - (737,999,580) *Closing cash and cash-equivalents
General reserve - - Cash in hand (including foreign currencies) 3.1 3,218,511,774 3,088,367,831
Balances with Bangladesh Bank and its agent bank (s) 3.2 12,480,410,176 16,601,918,975
- (737,999,580)
Balances with other Banks and Financial Institutions 4 13,393,287,481 24,369,196,715
Retained earnings carried forward 4,180,381,016 3,252,393,753
Money at call and short notice 5 60,000,000 594,300,000
Earnings per share (EPS) 39 5.15 4.92 Prize bonds 6.1 3,129,500 4,364,600
These financial statements should be read in conjunction with the annexed notes. 29,155,338,932 44,658,148,121
These financial statements should be read in conjunction with the annexed notes.
Signed as per our annexed report of same date
Signed as per our annexed report of same date

Ali Reza Iftekhar Gazi Md. Shakhawat Hossain A. Qasem & Co.
Managing Director & CEO Director Chartered Accountants Ali Reza Iftekhar Gazi Md. Shakhawat Hossain A. Qasem & Co.
Registration No: PF 1015 Managing Director & CEO Director Chartered Accountants
Registration No: PF 1015

Salina Ali Mir Nasir Hossain Mohammed Hamidul Islam

Director Director Partner Mohammed Hamidul Islam
Salina Ali Mir Nasir Hossain
Enrolment No: 912 Partner
Director Director
DVC No: 2104120912AS840301 Enrolment No: 912
Place of Issue: Dhaka
DVC No: 2104120912AS840301
Dated: 12 April 2021 Place of Issue: Dhaka
Dated: 12 April 2021
196 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 197
 Eastern Bank Limited and its subsidiaries

198
Consolidated Statement of Changes in Equity
for the year ended 31 December 2020

Amount in BDT

Assets Foreign
Dividend Actuarial Surplus in
Paid up Statutory revaluation General currency
Particulars equalisation remeasurement profit and loss Total
capital reserve reserve (lands reserve translation
reserve (Loss) account
and others) difference

Eastern Bank Limited

Balance as on 1 January 2020 8,117,995,470 8,117,995,470 356,040,000 2,758,085,527 603,493,370 - 5,365,748 6,002,777,699 25,961,753,284
Cash dividend paid for 2019 - - - - - - (1,217,699,321) (1,217,699,321)
Profit after tax for the year - - - - - - - 4,180,381,016 4,180,381,016
Adjustment of revaluation of
- - - 816,923,154 - - - - 816,923,154
treasury securities (HFT)
Reserve for amortisation of treasury
- - - (79,768,801) - - - - (79,768,801)
securities (HTM)
Adjustment of reserved for non
- - - (3,160,000) - (209,986,563) - - (213,146,563)
banking assets
Foreign currency translation
- - - - - - (2,960,090) - (2,960,090)
difference
Currency adjustment for Offshore
- - - - - - - 3,612,625 3,612,625
banking operation
Balance as at 31 December 2020 8,117,995,470 8,117,995,470 356,040,000 3,492,079,880 603,493,370 (209,986,563) 2,405,658 8,969,072,019 29,449,095,305
Balance as at 31 December 2019 8,117,995,470 8,117,995,470 356,040,000 2,758,085,527 603,493,370 - 5,365,748 6,002,777,699 25,961,753,284

Signed as per our annexed report of same date

Ali Reza Iftekhar Gazi Md. Shakhawat Hossain A. Qasem & Co.
Managing Director & CEO Director Chartered Accountants
Registration No: PF 1015

Salina Ali Mir Nasir Hossain Mohammed Hamidul Islam

Director Director Partner
Enrolment No: 912
Place of Issue: Dhaka DVC No: 2104120912AS840301
Dated: 12 April 2021

Go to Contents
Eastern Bank Limited and its subsidiaries

Consolidated Liquidity Statement (Asset and Liability Maturity Analysis)

as at 31 December 2020

Go to Contents
Amount in BDT

Not more than

Particulars 1-3 months term 3-12 months term 1-5 years term Above 5-years term Total
1 month term

Assets
Cash in hand (including balance with Bangladesh
15,698,921,950 - - - - 15,698,921,950
Bank and its agent Bank)
Balances with other banks and financial institutions 7,827,265,481 2,410,000,000 3,156,022,000 - - 13,393,287,481
Money at call and short notice 60,000,000 - - - - 60,000,000
Investments 5,002,855,500 5,367,150,169 8,514,693,324 18,265,027,314 28,866,634,758 66,016,361,066
Loans and advances 26,505,414,479 33,241,704,040 83,874,684,646 70,885,064,817 16,038,188,190 230,545,056,172
Fixed assets including land, building, furniture
39,626,958 81,275,802 356,642,374 1,718,023,519 5,577,078,317 7,772,646,970
and fixtures
Other assets 52,991,598 39,263,190 2,638,514,103 2,345,030,975 840,716,867 5,916,516,734
Non-banking assets - - 105,576,495 - - 105,576,495
Total Assets 55,187,075,967 41,139,393,202 98,646,132,942 93,213,146,626 51,322,618,132 339,508,366,868

Liabilities
Borrowing from other banks, financial institutions
6,421,887,243 13,041,203,385 10,459,762,873 14,383,975,141 1,974,251,975 46,281,080,617
and agents
Deposits and other accounts 28,494,543,058 37,593,353,104 60,550,574,688 113,074,871,367 1,582,037,648 241,295,379,865
Provisions & other liabilities 113,140,088 2,613,264,410 2,249,245,159 14,264,741,953 3,242,419,471 22,482,811,081
Total Liabilities 35,029,570,389 53,247,820,899 73,259,582,720 141,723,588,461 6,798,709,095 310,059,271,563
Net Liquidity Gap 20,157,505,578 (12,108,427,697) 25,386,550,222 (48,510,441,835) 44,523,909,037 29,449,095,305
Cumulative Net Liquidity Gap 20,157,505,578 8,049,077,881 33,435,628,103 (15,074,813,732) 29,449,095,305 -
Annual Report 2020
199

Financial Reports
Eastern Bank Limited Eastern Bank Limited

Financial Reports
Balance Sheet Balance Sheet
as at 31 December 2020 Amount in BDT as at 31 December 2020 Amount in BDT

Notes 2020 2019 Notes 2020 2019

PROPERTY AND ASSETS OFF BALANCE SHEET ITEMS

Cash 3 Contingent liabilities 21
Cash in hand (including foreign currencies) 3.1 3,218,381,880 3,088,303,685 Acceptances and endorsements 21.1 42,593,184,478 45,008,741,219
Balances with Bangladesh Bank and its agent bank(s) (including foreign Letters of guarantees 21.2 27,229,615,956 23,321,243,725
3.2 12,480,410,176 16,601,918,975 Irrevocable letters of credit 21.3 26,084,696,594 23,139,697,761
currencies)
Bills for collection 21.4 8,032,352,776 7,963,765,179
15,698,792,056 19,690,222,660
Other liabilities - -
Balances with other banks and financial institutions 4
103,939,849,804 99,433,447,884
In Bangladesh 4.1 12,444,848,375 19,309,748,914
Other commitments
Outside Bangladesh 4.2 558,299,302 9,647,145,392
Documentary credits and short term trade-related transactions - -
13,003,147,677 28,956,894,306
Forward assets purchased and forward deposits placed 21.5 120,428,481 347,552,793
Undrawn note issuance and revolving underwriting facilities - -
Money at call and short notice 5 60,000,000 594,300,000
Undrawn formal standby facilities, credit lines and other commitments - -
Investments 6
120,428,481 347,552,793
Government 6.1 50,517,783,115 31,927,657,257
TOTAL OFF-BALANCE SHEET ITEMS 104,060,278,285 99,781,000,677
Others 6.2 13,431,621,587 7,869,354,690
63,949,404,702 39,797,011,947
Loans and advances 7 These financial statements should be read in conjunction with the annexed notes.
Loans, cash credits, overdraft etc. 7.1 214,171,172,833 216,620,580,285
Bills discounted and purchased 7.2 14,772,690,062 15,430,454,478
228,943,862,895 232,051,034,763
Signed as per our annexed report of same date
Fixed assets including land, building, furniture and fixtures 8 7,710,898,017 7,349,051,230
Other assets 9 7,463,906,712 6,616,216,325
Non banking assets 10 105,576,495 108,736,495
TOTAL ASSETS 336,935,588,554 335,163,467,726 Ali Reza Iftekhar Gazi Md. Shakhawat Hossain A. Qasem & Co.
Managing Director & CEO Director Chartered Accountants
LIABILITIES AND CAPITAL Registration No: PF 1015
Borrowing from banks, financial institutions and agents 11
Non-convertible subordinated bond 11.1.a 6,000,000,000 6,500,000,000
Borrowing from other Banks, FIs, Agents etc. 38,286,389,129 44,320,788,208
Salina Ali Mir Nasir Hossain Mohammed Hamidul Islam
44,286,389,129 50,820,788,208
Deposits and other accounts 12 Director Director Partner
Current deposits & other accounts etc. 12.1 28,274,075,619 24,936,423,379 Enrolment No: 912
Bills payable 12.2 1,492,231,668 1,131,830,685 DVC No: 2104120912AS840301
Savings bank deposits 12.3 63,784,873,554 50,214,304,541 Place of Issue: Dhaka
Fixed deposits 12.4 111,289,608,129 131,735,401,586
Dated: 12 April 2021
Other deposits- special notice (SND) account 37,516,985,909 32,146,167,911
Bearer certificates of deposits 12.5 - -
242,357,774,879 240,164,128,102

Other liabilities 13 21,315,844,876 18,611,065,065

TOTAL LIABILITIES 307,960,008,884 309,595,981,375

SHAREHOLDERS' EQUITY
Paid-up capital 14 8,117,995,470 8,117,995,470
Statutory reserve 15 8,117,995,470 8,117,995,470
Dividend equalisation reserve 16 356,040,000 356,040,000
Assets revaluation reserve (Lands & others) 17 3,406,661,513 2,672,667,160
General reserve 603,493,370 603,493,370
Actuarial remeasurement gain/(loss) 18 (209,986,563) -
Foreign currency translation gain/(loss) 19 (326,701) 2,050,701
Surplus in profit and loss account 20 8,583,707,111 5,697,244,179
TOTAL SHAREHOLDERS' EQUITY 28,975,579,670 25,567,486,350
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 336,935,588,554 335,163,467,726

200 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 201
 Eastern Bank Limited
Eastern Bank Limited

Profit & Loss Account Cash Flow Statement

Financial Reports
for the year ended 31 December 2020 Amount in BDT
for the year ended 31 December 2020 Amount in BDT
Notes 2020 2019
Particulars Notes 2020 2019
A) Cash flows from operating activities
Interest Income 22 19,667,413,756 23,163,605,820
Interest receipts in cash 18,243,372,761 22,578,916,030
Interest paid on deposits and borrowings 23 (13,737,063,652) (15,004,895,176)
Interest payments (15,172,791,349) (13,827,167,931)
Net Interest Income 5,930,350,104 8,158,710,643 Dividend receipts 138,078,576 254,384,533
Fees and commission receipts in cash 2,709,822,896 3,409,242,904
Income from investments 24 5,048,674,967 2,751,634,005 Income from investment (other than dividend) 4,480,622,697 2,356,803,389
Fees, commission and brokerage 25 2,823,051,316 3,448,216,291 Recovery on loans previously written off 13.4.1 725,759,332 635,666,487
Other operating income 26 331,681,115 238,812,687 Cash payment to employees (including directors) (3,912,637,846) (3,674,574,810)
8,203,407,398 6,438,662,983 Cash payment to suppliers (1,201,000,079) (1,452,167,776)
Total operating income 14,133,757,502 14,597,373,626 Income taxes paid 13.3.2 (3,584,048,614) (1,683,595,759)
Receipts from other operating activities 331,681,115 238,812,687
Salary & allowances (excluding those of MD) 27 3,923,591,968 3,739,079,717 Payments for other operating activities (599,828,196) (671,284,857)
Rent, taxes, insurance, utilities etc. 28 430,005,846 598,044,720 Cash generated from operating activities before changes in operating assets and liabilities 2,159,031,292 8,165,034,897
Legal & professional expenses 29 63,853,652 117,123,508 Increase/(decrease) in Operating Assets & Liabilities
Postage, stamp, telecommunication etc. 30 131,767,614 136,968,876 (Purchase)/sale of trading securities (10,760,662,458) (8,598,344,096)
Stationery, printing, advertisement, business promotion etc. 31 292,012,702 353,473,079 Loans and advances to customers (other than banks) 4,785,116,138 (22,371,888,375)
Managing Director's salary and allowances 32 26,328,372 24,618,065 Other assets 40 (558,391,547) (867,873,731)
Directors' fees & expenses 33 2,717,506 4,956,529 Deposits from other Banks 12.b.1 (1,786,223,237) (4,172,637,504)
Audit fees 34 1,202,057 1,367,345 Deposits from customers (other than banks) 5,167,653,008 43,548,178,422
Repairs, maintenance and depreciation 35 970,168,499 740,495,162 Liability for tax 995,819,917 (564,427,197)
Other operating expenses 36 599,828,196 671,284,857 Liabilities for provision (1,727,248,670) (2,589,463,173)
Total operating expenses 6,441,476,412 6,387,411,859 Other liabilities 41 2,701,535,895 5,373,686,014
Profit before provisions 7,692,281,090 8,209,961,768 Cash generated from operating assets and liabilities (1,182,400,955) 9,757,230,360
Provision for loans and off-balance sheet exposures 13.4.1 Net Cash from operating activities 976,630,337 17,922,265,257
Specific provision (net off w/off recovery) 764,801,333 1,254,816,341 B) Cash flows from investing activities
General provision for loans (293,454,371) 174,331,665 (Purchase-net) of non-trading securities (12,655,811,043) (3,387,266,595)
Special general provision for Covid 19 602,388,520 - (Purchase-net) of property, plant and equipment (1,048,655,020) (1,206,371,630)
General provision for off-balance sheet expsoures 19,415,553 (117,854,862) Net cash (used in) investing activities (13,704,466,063) (4,593,638,225)
1,093,151,035 1,311,293,145 C) Cash flows from financing activities
Other provision 37 (91,661,696) 642,503,542 Borrowings from banks, financial institutions and agents (6,534,399,079) 4,088,886,409
Total provisions 1,001,489,339 1,953,796,686 Dividend paid (cash dividend) (1,217,699,321) (1,475,999,178)
Profit before tax for the year 6,690,791,751 6,256,165,081 Net cash (used in) / received from financing activities (7,752,098,400) 2,612,887,231
Current tax expense for the year 13.3.1 2,640,680,434 2,912,484,915 D) Net increase in cash and cash equivalents (A+B+C) (20,479,934,129) 15,941,514,263
Deferred tax income (net) 38 (52,451,737) (664,461,960) E) Effects of exchange rate changes on cash and cash equivalents (778,204) 4,092,885
Total provision for taxation 2,588,228,697 2,248,022,955 F) Opening cash and cash-equivalents 49,245,781,566 33,300,174,418
Profit after tax for the year 4,102,563,054 4,008,142,126 G) Closing cash and cash-equivalents (D+E+F)* 28,765,069,234 49,245,781,566
Appropriation
Statutory reserve 15 - (737,999,580) *Cash and cash-equivalents consists of:
General reserve - - Cash in hand (including foreign currencies) 3.1 3,218,381,880 3,088,303,685
- (737,999,580) Balances with Bangladesh Bank and its agent bank (s) 3.2 12,480,410,176 16,601,918,975
Retained earnings carried forward 4,102,563,054 3,270,142,546 Balances with other Banks and Financial Institutions 4 13,003,147,677 28,956,894,306
Money at call and short notice 5 60,000,000 594,300,000
Earnings per share (EPS) 39 5.05 4.94 Prize bonds 6.1 3,129,500 4,364,600
28,765,069,234 49,245,781,566
These financial statements should be read in conjunction with the annexed notes.
These financial statements should be read in conjunction with the annexed notes.

Signed as per our annexed report of same date Signed as per our annexed report of same date

Ali Reza Iftekhar Gazi Md. Shakhawat Hossain A. Qasem & Co.
Ali Reza Iftekhar Gazi Md. Shakhawat Hossain A. Qasem & Co.
Managing Director & CEO Director Chartered Accountants
Managing Director & CEO Director Chartered Accountants
Registration No: PF 1015
Registration No: PF 1015

Salina Ali Mir Nasir Hossain Mohammed Hamidul Islam

Salina Ali Mir Nasir Hossain Mohammed Hamidul Islam
Director Director Partner
Director Director Partner
Enrolment No: 912
Enrolment No: 912
DVC No: 2104120912AS840301
DVC No: 2104120912AS840301 Place of Issue: Dhaka
Place of Issue: Dhaka
Dated: 12 April 2021
Dated: 12 April 2021

202 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 203
 Eastern Bank Limited

204
Statement of Changes in Equity
for the year ended 31 December 2020

Amount in BDT

Assets Foreign
Dividend Actuarial Surplus in
Paid up Statutory revaluation General currency
Particulars equalisation remeasurement profit and loss Total
capital reserve reserve (lands reserve translation
reserve (Loss) account
and others) difference

Eastern Bank Limited

Balance as at 1 January 2020 8,117,995,470 8,117,995,470 356,040,000 2,672,667,160 603,493,370 - 2,050,701 5,697,244,179 25,567,486,350
Cash dividend paid for 2019 - - - - - - - (1,217,699,321) (1,217,699,321)
Profit after tax for the year - - - - - - - 4,102,563,055 4,102,563,055
Adjustment for revaluation of
- - - 816,923,154 - - - - 816,923,154
treasury securities (HFT)
Reserve for amortisation of treasury
- - - (79,768,801) - - - - (79,768,801)
securities (HTM)
Remeasurement (loss) on defined
- - - - - (209,986,563) - - (209,986,563)
benefit plans
Adjustment of reserved for non
- - - (3,160,000) - - - - (3,160,000)
banking assets
Currency translation difference - - - - - - (2,377,402) - (2,377,402)
Currency adjustment for Offshore
- - - - - - - 1,599,198 1,599,198
banking operation
Balance as at 31 December 2020 8,117,995,470 8,117,995,470 356,040,000 3,406,661,513 603,493,370 (209,986,563) (326,701) 8,583,707,111 28,975,579,670
Balance as at 31 December 2019 8,117,995,470 8,117,995,470 356,040,000 2,672,667,160 603,493,370 - 2,050,701 5,697,244,179 25,567,486,350

Signed as per our annexed report of same date

Ali Reza Iftekhar Gazi Md. Shakhawat Hossain A. Qasem & Co.
Managing Director & CEO Director Chartered Accountants
Registration No: PF 1015

Salina Ali Mir Nasir Hossain Mohammed Hamidul Islam

Director Director Partner
Enrolment No: 912

Go to Contents
Place of Issue: Dhaka DVC No: 2104120912AS840301
Dated: 12 April 2021

Eastern Bank Limited

Liquidity Statement (Asset and Liability Maturity Analysis)

as at 31 December 2020

Go to Contents
Amount in BDT

Not more than

Particulars 1-3 months term 3-12 months term 1-5 years term Above 5-years term Total
1 month term

Assets
Cash in hand (including balance with Bangladesh
15,698,792,056 - - - - 15,698,792,056
Bank and its agent Bank)
Balances with other banks and financial institutions 7,437,125,677 2,410,000,000 3,156,022,000 - - 13,003,147,677
Money at call and short notice 60,000,000 - - - - 60,000,000
Investments 5,002,855,500 5,342,150,169 6,574,587,329 18,213,176,944 28,816,634,758 63,949,404,701
Loans and advances 26,335,371,073 30,283,551,827 85,401,686,988 70,885,064,817 16,038,188,190 228,943,862,895
Fixed assets including land, building, furniture
38,512,451 78,989,980 346,612,059 1,669,705,211 5,577,078,317 7,710,898,017
and fixtures
Other assets 16,973,522 3,245,113 2,602,496,026 2,309,012,898 2,532,179,152 7,463,906,712
Non-banking assets - - 105,576,495 - - 105,576,495
Total Assets 54,589,630,279 38,117,937,089 98,186,980,898 93,076,959,870 52,964,080,417 336,935,588,554

Liabilities
Borrowing from other banks, financial institutions
5,392,469,886 10,950,712,667 14,207,182,739 12,078,242,881 1,657,780,956 44,286,389,129
and agents
Deposits and other accounts 29,070,313,742 37,671,991,595 60,958,560,526 113,074,871,367 1,582,037,648 242,357,774,879
Provisions & other liabilities 107,258,578 2,477,627,928 2,132,501,860 13,524,336,905 3,074,119,605 21,315,844,876
Total Liabilities 34,570,042,206 51,100,332,190 77,298,245,125 138,677,451,153 6,313,938,210 307,960,008,884
Net Liquidity Gap 20,019,588,073 (12,982,395,102) 20,888,735,773 (45,600,491,283) 46,650,142,207 28,975,579,670
Cumulative Net Liquidity Gap 20,019,588,073 7,037,192,971 27,925,928,744 (17,674,562,538) 28,975,579,670 -
Annual Report 2020
205

Financial Reports
Eastern Bank Limited and its subsidiaries

Financial Reports
EBL Asset Management Limited

Notes to the financial statements EBL Asset Management Limited (EBLAML) was incorporated on 9 January 2011 to carry out asset management business, capital
market operation, equity investment etc. EBLAML obtained license from Bangladesh Securities & Exchange Commission (BSEC) on 25
as at and for the year ended 31 December 2020 May 2017 to run full-fledged business operations. Registered office of EBLAML is located at Bangladesh Shipping Corporation (BSC)
Tower, 2-3 Rajuk Avenue (4th Floor), Motijheel C/A, Dhaka - 1000, Bangladesh.
1 The Bank and its activities 2 Basis of preparation and significant accounting policies
1.1 Eastern Bank Limited was incorporated in Bangladesh as a public limited company to carry out all kinds of banking business in Basis of preparation
and outside Bangladesh. The Bank took over the business, assets, liabilities and losses of erstwhile Bank of Credit & Commerce
Separate and consolidated financial statements
International (Overseas) Limited (hereinafter referred to as BCCI) as they stood after reduction or adjustments in accordance with the
provisions of the BCCI (Reconstruction) Scheme, 1992. The Bank commenced operations from 16 August 1992 and at present it has 85 The separate financial statements of the Bank as at and for the year ended 31 December 2020 comprise those of Domestic Banking
branches, 5 sub-branches and 29 agent banking outlets across Bangladesh. The shares of the Bank is listed with both Dhaka Stock (main operation including representative offices) and Offshore Banking operation, and the consolidated financial statements of the
Exchange (DSE) Limited and Chittagong Stock Exchange (CSE) Limited. The registered office of the Bank is located at 100 Gulshan group comprise those of 'the Bank' (parent company) and its subsidiaries (together referred to as 'the group' and individually referred
Avenue, Dhaka - 1212, Bangladesh. to as 'group entities/subsidiaries').
The principal activities of the Bank are to provide a comprehensive range of financial products (loans and deposits) and services, There was no significant change in the nature of principal business activities of the Bank and the subsidiaries during the financial year.
personal and commercial banking, trade services, cash management, treasury, securities and custodial services.
2.1 Statement of compliance
1.2 Offshore Banking Operation (OBO)
The consolidated and separate financial statements of the Group and the Bank have been prepared in accordance with International
EBL has one Offshore Banking Unit ('OBU' or 'the Unit') which runs through a separate desk under control and supervision of the Offshore Financial Reporting Standards (IFRSs) as adopted by the the Financial Reporting Council (FRC) under the Financial Reporting Act,
Banking Division/Operation (OBO). The unit and all activities of the division are governed under the permission by Bangladesh Bank vide 2015 (FRA) and the requirements of the Banking Companies Act, 1991 (as amended up to date), the rules and regulations issued by
letter no. BRPD(P)744(89)/2004-303 dated 25 January 2004 and subsequent approvals for continuation by Bangladesh Bank vide letter Bangladesh Bank (BB), the Companies Act 1994, the Securities and Exchange Rules 1987. In case any requirement of the Banking
no. BRPD(P)744(89)/2020-2254 & 2255 dated 25 February 2020 in line with the offshore banking policy issued by Bangladesh Bank vide Companies Act, 1991 (as amended up to date), and provisions and circulars issued by Bangladesh Bank differ with those of IFRSs, the
BRPD circular no. 02 dated 25 February 2019 and amendments thereon. The activities of the unit is to provide both funded and non- requirements of the Banking Companies Act 1991 (as amended up to date), and provisions and circulars issued by Bangladesh Bank
funded facilities and to accept savings/current/term deposits in freely convertible foreign currencies to and from non-resident person/ shall prevail. Material departures from the requirements of IFRSs are as follows:
institutions, fully foreign owned enterprises (Type ‘A’) in EPZs, PEPZs, EZs and Hi-Tech Parks, etc. Besides, OBU offers short term loan
i) Presentation of financial statements
facility to the Type ‘B’ industrial enterprise in EPZs, PEPZs, EZs and Hi-Tech Parks. In addition, OBU discounts/purchases accepted usance/
deferred bills against import from abroad and accepted usance/deferred export bills against direct and deemed exports of products IFRSs: As per IAS 1 Presentation of financial statements, financial statements shall comprise a statement of financial position as at
produced in Bangladesh of persons resident in Bangladesh. Offshore Banking conducts banking business activities in foreign currencies. the end of the period, a statement of profit or loss and other comprehensive income for the period, a statement of changes in equity
for the period, a statement of cash flows for the period, notes - comprising significant accounting policies and other explanatory
The unit commenced its operations on 19 May 2004 and its office is located at 100 Gulshan Avenue, Dhaka-1212. information. As per IAS 1, the entity shall also present current and non-current assets and liabilities as separate classifications in its
statement of financial position.
Representative office and agent banking operation of the Bank
Bangladesh Bank: The presentation of the financial statements in prescribed format (i.e. balance sheet, profit and loss account,
Representative Office:
cash flow statement, statement of changes in equity, liquidity statement) and certain disclosures therein are guided by the First
The bank has two Representative Offices (ROs) abroad, one in Myanmar named ‘EBL Yangon Representative Office (YRO)' and another Schedule (section 38) of the Banking Companies Act 1991 (as amendment up to date) and BRPD circular no. 14 dated 25 June 2003
one in China named ’EBL Guangzhou Representative Office (GRO)', which were established in 2014 and 2019 respectively with a view and subsequent guidelines of Bangladesh Bank. In the prescribed format there is no option to present assets and liabilities under
to extend its trade businesses by providing banking and business information to the business people of the these countries. Registered current and non-current classifications.
office of YRO is at Room (2B/2C), 1st Floor, Rose Condominium, No. 182/194, Botahtaung Pagoda Road, Pazundaung Township, Yangon,
ii) Investments in Equity Instruments (Shares, Mutual funds, etc.)
Myanmar; and GRO is at Unit G, 22 Floor, Jianhe Centre, No.111 Tiyuxi Road, Tianhe District, Guangzhou, Guangdong Province, China.
IFRSs: As per requirements of IFRS 9 Financial instruments, all equity investments (shares and mutual funds) are
Agent Banking Outlet:
to be measured at fair value with value changes recognised in statement of profit or loss and other comprehensive
The bank has started agent banking operation in 2018 with a view to reach unbanked population particularly in the geographically income for the period, except for those equity investments for which the entity has elected to present value changes in
dispersed area and offer banking services to potential customers who are currently out of traditional banking periphery. EBL has 'other comprehensive income (OCI)'. If an equity investment is not held for trading, an entity can make an irrevocable
launched this banking service with 2 outlets in 2018, which is now 29 across the country with thousands of new customers. This election at initial recognition to measure it through OCI with only dividend income recognised in profit or loss account.
service includes offering all types of deposit accounts and other banking transactions including bill payments, inward foreign
remittance payment, fund transfer etc. Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, investments in quoted and unquoted shares are revalued on the
basis of year end market price and Net Assets Value (NAV) of last audited balance sheet respectively. As per instruction of another DOS
1.3 Subsidiaries of the Bank
circular letter no. 3 dated 12 March 2015, investment in mutual fund (closed end) is revalued 'at lower of cost and (higher of market
The Bank has four fully owned subsidiaries as on the reporting date. These are EBL Securities Limited, EBL Investments Limited, EBL value and 85% of NAV)'. As such, provision is made for any loss arising from diminution in value of investments (portfolio basis);
Finance (HK) Limited and EBL Asset Management Limited. All subsidiaries of the Bank have been incorporated in Bangladesh except otherwise investments are recognised at costs.
for EBL Finance (HK) Limited which is incorporated in Hong Kong.
The Bank reviews its investment in shares & mutual funds at each quarter end on mark-to-market basis and has maintained a
EBL Securities Limited cumulative provision of BDT 686.96 million as of 2020 as per BB instructions (note 13.8).
EBL Securities Limited (EBLSL), a securities brokerage firm acquired in two phases, is a public limited company having TRECs (Trading iii) Revaluation gain/loss on government securities
Right Entitlement Certificate) and ordinary shares of both the bourses i.e., Dhaka Stock Exchange (DSE) Limited and Chittagong Stock
IFRSs: As per IFRS 9 Financial instruments, treasury bills (T-bills)/treasury bonds (T-bonds) are measured 'at fair
Exchange (CSE) Limited. The principal activities of this subsidiary are buying, selling and settling of securities on behalf of investors and
value through other comprehensive income' where gains or losses shall be recognised in other comprehensive
its own portfolio. Registered office of EBLSL is located at Jiban Bima Bhaban, 10 Dilkusha CA, Dhaka - 1000, Bangladesh.
income (OCI), except for impairment gains or losses and foreign exchange gains and losses. The loss allowance arisen
EBL Investments Limited from impairment shall be recognised in OCI and shall not reduce the carrying amount of financial assets in the
financial position. Interest calculated using the effective interest method shall be recognised in profit or loss account.
EBL Investments Limited (EBLIL) was incorporated on 30 December 2009. EBLIL obtained license from Bangladesh Securities & Exchange
Commission (BSEC) on January 2013 and started full-fledged operations of merchant banking, portfolio management, underwriting, etc.
Bangladesh Bank: According to DOS circular no. 5 dated 26 May 2008 and subsequent clarification in DOS circular no. 5 dated
from June 2013. Registered office of EBLIL is located at Jiban Bima Bhaban, 10 Dilkusha CA, Dhaka - 1000, Bangladesh.
28 January 2009, amortisation gain/loss is charged to profit and loss account, mark-to-market loss on revaluation of government
EBL Finance (HK) Limited securities (T-bills/T-bonds) categorised as Held for Trading (HFT) is charged to profit and loss account, but any unrealised trading
EBL Finance (HK) Limited, the first foreign subsidiary of EBL, was incorporated on 28 November 2011 with Hong Kong (HK) authority. gain on such revaluation is recognised to revaluation reserve account. Securities designated as Held to Maturity (HTM) are measured
This subsidiary started its full-fledged business operations (i.e. offshore trade finance, advising, documents collection etc.) in Hong at amortised cost method but income/gain is recognised through equity.
Kong during 2013 after obtaining all the required licenses from Bangladesh and HK authority. Registered office of EBL Finance (HK)
Limited is Unit 1201, 12th Floor, Albion Plaza, 2-6 Granville Road, Tsimshatsui, Hong Kong.

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The Bank recognised revaluation loss of BDT 378.57 million and amortisation expense of BDT 128.29 million in profit and loss account x) Non-banking assets
in 2020 against its investment in government treasury securities categorised as HFT and HTM respectively. Unrealised gain of BDT
IFRSs: No indication of non-banking assets is found in any IASs/IFRSs.
817.13 million arising from revaluation of HFT securities and BDT 20.22 million arising from amortisation gain of HTM securities have
been booked in equity as reserve in compliance with Bangladesh Bank guidelines (note 17.02 & 17.03).
Bangladesh Bank: As per Banking Regulation and Policy Department (BRPD) of Bangladesh Bank circular no. 14 dated 25 June
2003, there exists a face item named non-banking assets.
iv) Provision on loans and advances xi) Cash flow statement
IFRSs: As per IFRS 9 Financial instruments, loans and advances shall be recognised and measured at amortised cost (net of any write IFRSs: Cash flow statement can be prepared either in direct method or indirect method. The presentation method is selected to present cash
down for impairment). When any objective evidence of impairment (a loss allowance for expected credit losses) exists for such financial flow information in a manner that is most suitable for the business or industry. Whichever method selected should be applied consistently.
assets, impairment assessment should be undertaken individually or portfolio basis (when assets are not individually significant).
Bangladesh Bank: As per Banking Regulation and Policy Department (BRPD) of Bangladesh Bank circular no. 14 dated 25 June 2003,
Bangladesh Bank: As per Bangladesh Bank instructions vide different circulars, a general provision @ 0.25% to 2% under different cash flow statement is to be prepared following a mixture of direct and indirect method.
categories of unclassified loans (standard/SMA loans) and special general provision for COVID-19 @ 1% on PBD (Payment by deferral)
facilitated accounts, should be maintained regardless of objective evidence of impairment. And specific provision for sub-standard/ xii) Balance with Bangladesh Bank (cash reserve requirement)
doubtful/bad-loss loans should be made at 5%, 20%, 50% and 100% respectively on loans net off eligible securities (if any). Also, a IFRSs: Balance with Bangladesh Bank should be treated as other assets as it is not available for use in day-to-day operations as per
general provision @ 0.5% - 1% should be provided for certain off-balance sheet exposures. Such provision policies are not specifically IAS 7 Statement of cash flows.
in line with those prescribed by IFRS 9.
The Bank charged to its profit and loss account a general provision of BDT 328.35 million (including special general provision of BDT Bangladesh Bank: Balance with Bangladesh Bank should be treated as cash and cash equivalents.
602.35 million against PBD accounts, release of BDT 293.45 million against unclassified loans & advances, and charge of BDT 19.41 xiii) Off-balance sheet items
million for off-balance sheet exposures) in 2020 (note 13.4.1).
IFRSs: No concept of off-balance sheet items in any IFRS/IAS/IFRIC; so nothing to disclose as off-balance sheet items.
v) Other comprehensive income and appropriation of profit
IFRSs: As per IAS 1 Presentation of financial statements, other comprehensive income (OCI) is a component of Bangladesh Bank: As per BRPD circular no.14 dated 25 June 2003, off-balance sheet items i.e. letter of credit (LC), letter of
financial statements or the elements of OCI are to be included in a single other comprehensive income (OCI) statement. guarantee (LG), acceptance should be disclosed separately on the face of the balance sheet.
IFRSs do not require appropriation of profit to be shown on the face of the statement of comprehensive income. xiv) Presentation of loans and advance net of provision

Bangladesh Bank: The templates of financial statements issued by Bangladesh Bank do not include other comprehensive income IFRSs: Loans and advances shall be presented at amortised cost net of any write down for impairment (expected credit losses that
nor are the elements of other comprehensive income allowed to be included in a single other comprehensive income (OCI) statement. result from all possible default events over the life of the financial instrument).
As such the Bank does not prepare the other comprehensive income statement. However, elements of OCI, if any, are shown in the
statements of changes in equity. Furthermore, the above templates require disclosure of appropriation of profit on the face of profit Bangladesh Bank: As per BRPD circular 14 dated 25 June 2003, provision on loans and advances should be presented separately as
and loss account. liability and cannot be netted off against loans and advances.

vi) Financial instruments - presentation and disclosure xv) Recognition of interest in suspense

As per BB guidelines, in certain cases financial instruments are categorised, recognised, measured and presented differently from IFRSs: Loans and advances to customers are generally classified as non-derivative financial assets measured at amortised cost
those prescribed in IFRS 7 Financial instruments - disclosure and IFRS 9 Financial instruments. As such some disclosures and as per IFRS 9 and interest income is recognised through effective interest rate method over the term of the loan. Once a loan is
presentation requirements of IFRS 7 and IFRS 9 cannot be fully made in these financial statements. impaired, interest income is to be recognised in profit and loss account on the same basis on revised carrying amount.

vii) REPO transactions Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012 and BRPD Circular no. 03 dated 21 April 2019 , once a
IFRSs: When an entity sells a financial asset and simultaneously enters into an agreement to repurchase the same (or a loan is classified, interest on such loans are not allowed to be recognised as income, rather the corresponding amount needs to be
similar asset) at a fixed price on a future date (REPO or stock lending), the arrangement is accounted for as a collateralised credited to an interest suspense account, which is presented as liability in the balance sheet.
borrowing and the underlying asset continues to be recognised in the entity’s financial statements. This transaction will xvi) Presentation of intangible asset
be treated as borrowing and the difference between selling price and repurchase price will be treated as interest expense.
IFRSs: An intangible asset must be identified and recognised, and the disclosure must be given as per IAS 38.
Bangladesh Bank: As per Bangladesh Bank circulars/guidelines, when a bank sells a financial asset and simultaneously enters into
an agreement to repurchase the same (or a similar asset) at a fixed price on a future date (REPO or stock lending), the arrangement Bangladesh Bank: There is no regulation for intangible assets in BRPD circular no. 14 dated 25 June 2003.
is accounted for as a normal sale transaction and the financial assets should be derecognised in the seller’s book and recognised in *Please refer to note 2.10 compliance of International Accounting Standards (IASs) and International Financial Reporting Standards
the buyer’s book. (IFRSs) for further details.
viii) Financial guarantees 2.2 Basis of measurement
IFRSs: As per IFRS 9 Financial instruments, financial guarantees are contracts that require an entity to make specified payments to The consolidated financial statements of the Group and the separate financial statements of the Bank have been prepared on the
reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the terms of the historical cost basis except for the following material items:
instrument. Financial guarantee liabilities are recognised initially at their fair value and is amortised over the life of the instrument.
Any such liability is subsequently carried at the higher of this amortised amount and the present value of any expected payment when Government treasury bills and bonds designated as 'Held for Trading (HFT)' are marked-to-market weekly with resulting gain credited
a payment under the guarantee has become probable. Financial guarantees are prescribed to be included within other liabilities. to revaluation reserve account but loss charged to profit and loss account.
Government treasury bills and bonds designated as 'Held to Maturity (HTM)' are amortised yearly with resulting gain credited to
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, financial guarantees such as letter of credit (LC) & letter of amortisation reserve account but loss charged to profit and loss account.
guarantees (LG) should be treated as off-balance sheet items. No liability is recognised for such guarantee except the cash margin.
However, a general provision @ 0.5% -1% is provided against such guarantee. Land is recognised at cost at the time of acquisition and subsequently measured at fair value as per IAS 16 'Property, Plant &
Equipment' and BSEC notification no. SEC/CMRRCD/2009-193/150/Admin/51 dated 18 August 2013.
ix) Cash and cash equivalents
2.3 Going concern basis of accounting
IFRSs: Cash and cash equivalent items should be reported as cash item as per IAS 7 Statements of cash flows.
These financial statements have been prepared on the basis of assessment of the Bank’s ability to continue as a going concern. EBL
Bangladesh Bank: Some highly liquid assets such as money at call and short notice, T-bills/T-bonds, prize bonds are not prescribed to has neither any intention nor any legal or regulatory compulsion to liquidate or curtail materially the scale of any of its operations.
be shown as cash and cash equivalents; rather shown as face item in the balance sheet. However, in the cash flow statement, money The key financial parameters (including liquidity, profitability, asset quality, provision sufficiency and capital adequacy) of the Bank
at call and short notice and prize bonds are shown as cash and cash equivalents beside cash in hand, balance with Bangladesh Bank continued to exhibit a healthy trend for couple of years. The rating outlook of the Bank as denoted by both the rating agencies CRISL
and other banks. and Moody’s is ‘developing' and 'negative' respectively. Besides, the management is not aware of any material uncertainties that may
cast significant doubt upon the Bank’s ability to continue as a going concern.

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2.4 Use of estimates and judgments 2.7 Cash flow statement

The preparation of the consolidated financial statements of the Group and the separate financial statements of the Bank in conformity Cash flow statement has been prepared in accordance with IAS 7 Statement of cash flows and under the guideline of Banking
with IFRSs requires management to make judgments, estimates and assumptions that affect the application of accounting policies Regulations & Policy Department (BRPD) of Bangladesh Bank circular no. 14 dated 25 June 2003. The statement shows the structure
and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates. of changes in cash and cash equivalents during the financial year.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the 2.8 Reporting period
period in which the estimate is revised and in any future period affected. These financial statements of the Group, the Bank and its subsidiaries cover 01 (One) calendar year from 01 January to 31 December.
Key estimates include the following: 2.9 Liquidity statement
Loan loss provision The liquidity statement has been prepared mainly on the basis of remaining maturity grouping of assets and liabilities as at the close
Revaluation of land of the year as per following bases:
Deferred tax assets/liabilities Particulars Basis of use
Gratuity & superannuation fund Cash, balance with other banks and financial institutions,
Useful lives of depreciable assets Stated maturity/observed behavioural trend.
money at call and short notice, etc.
2.5 Foreign currency transactions and translations Investments Residual maturity term.
Functional and presentation currency Repayment/maturity schedule and behavioural trend (non-maturity
Loans and advances
products).
The financial statements of the Group and the Bank are presented in Bangladesh Taka (BDT) which is the functional currency of Fixed assets Useful life.
the parent, except Offshore Banking Operation and EBL Finance (HK) Ltd. where functional currency is US Dollar (USD) and Hong
Other assets Realisation/amortisation basis.
Kong Dollar (HKD) respectively. All financial information presented in Taka has been rounded off to the nearest integer, except when
otherwise indicated. Borrowings from other banks and financial institutions Maturity/repayment term.
Deposits and other accounts Maturity and behavioural trend (non-maturity products).
Conversion of foreign currency transactions
Other long term liability Maturity term.
Foreign currency transactions of the Bank and its subsidiaries are converted into respective functional currencies (Bangladesh Taka Provision and other liability Settlement/adjustment schedule basis.
in case of EBL main operations, US Dollar in case of OBO and HKD in case of EBL Finance (HK) Limited) at the rate of exchange ruling on
the day of transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency 2.10 Significant accounting policies
at standard mid-rate of exchange ruling at the reporting date. Effects of exchange rate differences (rates at which transactions were
initially recorded and the rate prevailing on the reporting date/date of settlements) applied on the monetary assets or liabilities of the The accounting policies set out below have been applied consistently to all periods presented in these financial statements, and have
Bank are recorded in the profit and loss account as per IAS 21 The Effects of Changes in Foreign Exchange Rates. been applied consistently by group entities except otherwise instructed by Bangladesh Bank as the primary regulator.

Translation of foreign currency financial statements Accounting policies of subsidiaries

Assets and liabilities of OBO and EBL Finance (HK) Limited have been translated into Taka (functional currency of the Bank) using The financial statements of subsidiaries which are included in the consolidated financial statements of the Group have been prepared
year-end standard mid-rate of exchange (i.e. the closing rate) whereas income and expenses are translated using monthly average using uniform accounting policies of the Bank (the Parent) for transactions and other events of similar nature unless there is any
rate of standard mid-rates of exchange of the Bank. The cumulative amount of net exchange rate differences has been presented instruction by regulators. There is no significant restriction on the ability of subsidiaries to transfer funds to the parent in the form of
separately as a component of equity as per IAS 21 The Effects of Changes in Foreign Exchange Rates. cash dividends or to repay loans and advances.

2.6 Basis of consolidation A. Assets and basis of their valuation

Subsidiaries (investees) are entities controlled by the parent (the Bank). Control exists when the Bank has the power over the i) Cash and cash equivalents
subsidiaries that gives right to direct relevant activities, exposure, or rights, to variable returns from its involvement with the Cash and cash equivalents include notes and coins in hand, at vault and at ATM, unrestricted balances held with Bangladesh Bank
subsidiaries, and the ability to use its power over the subsidiaries to affect the amount of the Bank's returns. and its agent banks, balance with other banks and financial institutions, money at call and on short notice and prize bonds which are
The consolidated financial statements incorporate the financial statements of the Bank and its subsidiary companies from the date not ordinarily susceptible to change in value.
that control commences until the date that control ceases. The financial statements of such subsidiary companies are incorporated Amount withdrawn/transferred by customers after year-end process are properly addressed, reconciled and adjusted with ATM
on a line by line basis and the investments held by the parent (the Bank) are eliminated against the corresponding share capital of balance and Customers deposit to reflect the actual balance of ATM and deposits as of the reporting date.
group entities (subsidiaries) in the consolidated financial statements.
ii) Investments
Financial assets and liabilities are offset and the net amount reported in the consolidated financial statements only when there is
legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the asset All investments are initially recognised at cost, including acquisition charges associated with the investment. Investments classified
and settle the liability simultaneously. Items are not offset in the consolidated financial statements unless required or permitted by as government/Bangladesh Bank treasury securities (categorised as HTM or/and HFT) are subsequently measured as per DOS
accounting standards and regulators. circular no. 5 dated 26 May 2008 and subsequent clarifications on 28 January 2009. Investments classified as non-government
treasury securities are subsequently measured either at cost or market value less any recoverable cost. Details are given below:
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions are eliminated
in preparing the consolidated financial statements. Unrealised losses are eliminated in the same way as unrealised gains, but only to Held to Maturity (HTM)
the extent that there is no evidence of impairment. Investments which are intended to be held till maturity are classified as Held to Maturity (HTM). These are measured at amortised
Loss of control cost at each year-end by taking into account any discount or premium on acquisition. Premiums are amortised and discounts are
accredited, using the effective or historical yield. Any increase in value of securities is booked to equity but decrease to profit and loss
Upon loss of control of a subsidiary the group derecognises the assets (including any goodwill) and liabilities of the subsidiary at account. Income is recognised to profit and loss account on earned basis as per BB guideline.
carrying amount, any non controlling interests and the other components of equity related to the subsidiary. Any surplus or deficit
arising on the loss of control is recognised in profit and loss account. If the group retains any interest in the former/previous/ex- Held for Trading (HFT)
subsidiary, then such interest is measured at fair value at the date that the control is lost. However, the group has neither lost control These are investments primarily held for selling or trading. After initial recognition, investments are marked-to-market on weekly
nor derecognised any asset or liability of any of its subsidiaries in the reporting period. basis. Any decrease in revaluation of securities is recognised to profit and loss account, but any increase of value of securities is
Business Combinations booked to revaluation reserve account as per BB DOS circular no. 5 dated 28 January 2009. Income is recognised to profit and loss
account on earned basis as per BB guideline.
Business combinations are accounted for using the acquisition method when control is transferred to the Group. The consideration
transferred in the acquisition and identifiable net assets acquired are measured at fair value. Any goodwill that arises is annually
tested for impairment. Any gain on bargain purchase is recognised in Group's profit or loss account immediately. Transaction costs
are expensed as incurred except if they are related to the issue of debt or equity securities.

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REPO and reverse REPO Heads Rates of provision
The Bank has been recording transactions of REPO and reverse REPO following DOS circular no. 6 dated 15 July 2010 of BB. In case General provision on:
of REPO of both coupon and non-coupon bearing (treasury bill) securities, the Bank adjusts the revaluation reserve account for HFT Unclassified (including SMA) small and medium enterprise 0.25%
securities and stops the weekly revaluation (if the revaluation date falls within the REPO period) of the same security. For interest Unclassified (including SMA) Loans to BHs/MBs/SDs against shares etc. 2%
bearing security, the Bank does not accrue interest during REPO period. Unclassified (including SMA) loans for housing finance 1%
Investments – Initial recognition and subsequent measurement at a glance Unclassified consumer financing including credit card (other than housing finance) 2%
Investments are stated as per following bases: Unclassified (including SMA) other loans and advances 1%
Short term agri credit and micro credit 1%
Initial Measurement after Special General Provision COVID-19 (on PBD facilitated accounts) 1%
Investment class Recording of changes
recognition initial recognition Off-balance sheet exposures (excluding Bills for collection) 0%-1%
Govt. T-bills/bonds - Held For Trading (HFT) Cost Fair value Revaluation loss to profit and loss account,
but gain to revaluation reserve account.
Specific provision on:
Govt. T-bills/T-bonds - Held To Maturity (HTM) Cost Amortised cost Increase in value of securities is booked to
Substandard loans other than short term agri credit, micro credit and CMSME 20%
equity as amortization gain, but decrease to
profit and loss account. Doubtful loans other than short term agri credit, micro credit and CMSME 50%
Debenture/bond Cost Cost At realizable value. Unrealised loss to profit Substandard & doubtful loans short term agri credit and micro credit 5%
and loss account. Substandard loans CMSME 5%
Shares (quoted) * Cost Lower of cost or market Provision for revaluation loss (net off gain) Doubtful loans CMSME 20%
value (portfolio basis) is charged to profit and loss account but no Bad/Loss loans and advances 100%
unrealised gain booking.
Shares (unquoted)* Cost Lower of cost or Net Provision for unrealised loss to profit and Loans and advances (write-off):
Asset Value (NAV) loss account but no unrealised gain booking.
Mutual fund (closed-end) * Cost Lower of cost or (higher Provision for unrealised loss (net) to profit Loans and advance are written off to the extent that there is no realistic prospect of recovery in the proximate future, classified as
of market value or 85% and loss account but no unrealised gain bad/ loss for 3 years at a stretch, and adequate provision are maintained as per BRPD circular no. 01 dated 6 February 2019. No loans
of NAV) booking. and advances are written off partially and without prior approval of the board of directors in compliance with the said circular. At
each reporting period end, the bank assesses loans and advances to be written off as per Bank’s own process in compliance with BB
Prize bonds Cost Cost None guideline. However, no loan was written off in the year 2019 and 2020. Details of loans and advances written off are given in the note
7.b.12.a.(ii) and 7.b.14 in the financial statements.
* Provision for shares against unrealised loss (gain net off) has been made as per DOS circular no. 4 dated 24 November 2011 and for
Loans and advances (recovery from written off):
mutual funds (closed-end) as per DOS circular letter no. 3 dated 12 March 2015 of Bangladesh Bank.
The bank puts continuous effort for recovery from written off loans and advances in compliance with Section 28ka of the Banking
Investment in subsidiaries
Companies Act 1991 (as amended up to date) and BRPD circular no. 01 dated 6 February 2019. The Bank takes necessary legal
Investment in subsidiaries are accounted for under the cost method of accounting in accordance with IAS 27 Consolidated and separate measures against default borrowers for recovery against written off loans and advances as per relevant BB guidelines and Artha
financial statements', IFRS 3 Business combination and IFRS 10 Consolidated financial statements. Impairment of investment in Rin Adalat Act-2003. Legal cost incurred against those borrowers are initially charged to the profit and loss account of the bank.
subsidiaries is made as per the provision of IAS 36 Impairment of Assets.
However, recovery including any legal cost against written off loans and advances are recognised in profit and loss account as earned
The bank has done impairment assessment of its investment in the largest subsidiary company EBL Securities Limited by external
and on settlement basis. In 2020, the bank recorded BDT 725.76 million from recovery against written off loans and advances in profit
auditor in addition to the statutory auditor. As value in use (using discounted cash flow method) is higher than carrying value of
and loss account netting off with specific provision. Details of recovery are given in note 7.b.12.a.(iii) and 7.b.13.
investment, no impairment is required to be recognised as on balance sheet date.
iv) Fixed assets (other than lease items)
iii) Loans, advances and provisions
The group applies the accounting requirements of IAS 16 Property, plant and equipment for its own assets which are held for current
Loans and advances (initial recognition):
and future use in the business and are expected to be used for more than one year.
Loans and advances comprise of non-derivative financial assets with fixed or determinable payments and are not quoted in an active
market. These are recognised at gross amount on the date on which they are originated. The group has not designated any loans and Recognition and measurement
advances upon initial recognition as at fair value through profit and loss account or other comprehensive income. Fixed assets except land are stated at cost less accumulated depreciation as per IAS 16. Land is recognised at cost at the time of
After initial recognition, loans, advances and interest receivables are subsequently measured at amortised cost using effective interest acquisition and subsequently measured at revalued amounts which are the fair value at the time of revaluation done by independent
rate (EIR) over the relevant periods. The amortised cost of a financial asset is the amount at which the asset is measured at initial valuer and any surplus on revaluation is shown as equity component until the asset is disposed off.
recognition less principal repayments, using EIR method. The EIR is the rate that exactly discounts estimated future cash receipts The cost of an item of fixed assets is recognised as an asset if it is probable that future economic benefits associated with the item will
(estimates cash flows considering all contractual terms of the instrument but not future credit losses) during the expected life of the flow to the entity, and the cost of the item can be measured reliably.
financial instrument.
The cost of an item of fixed assets comprises:
Loans and advances (provisioning):
- its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates.
General provisions @ 0.25% to 2% under different categories on unclassified loans (standard/SMA) and @ 0.5% to 1% on certain off
- any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the
balance-sheet exposures, and specific provisions @ 5%, 20%, 50% & 100% on classified (substandard/doubtful/bad-loss) and some
manner intended by management.
rescheduled loans are made on the basis of quarter end review by the management and in compliance with BRPD Circular no.14 dated
23 September 2012, BRPD circular no 8 dated 2 August 2015, BRPD circular no 12 dated 20 August 2017, BRPD circular no 15 dated - the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.
27 September 2017, BRPD circular letter no 1 dated 03 January 2018, BRPD circular no 01 dated 20 February 2018, BRPD circular no Subsequent costs
07 dated 21 June 2018, BRPD circular no 13 dated 18 October 2018 and BRPD Circular no. 03 dated 21 April 2019, BRPD Circular no.
16 dated 21 July 2020, BRPD Circular no 17 dated 28 September 2020, BRPD Circular Letter no 52 dated 20 October 2020 and BRPD Subsequent costs are capitalised only when it is probable that the future economic benefits associated with the costs will flow to
Circular Letter no 56 dated 10 December 2020. Provisions and interest suspense are separately shown under other liabilities as per the entity and cost can be measured reliably. The carrying amount of the replaced portion is derecognised. The costs of day to day
First Schedule of Banking Companies Act 1991 (as amendment up to date), instead of netting off with loans. servicing of fixed assets, i.e. repairs and maintenance is charged to profit and loss account as expense when incurred.

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Depreciation Bank as lessee:
Depreciation is charged at the rates stated below on all the items of fixed assets on the basis of estimated useful lives as determined in The bank assesses at initiation of a contract whether the contract is, or contains a lease. That is, if the contract conveys the right to
the fixed asset policy of the Bank. In all cases depreciation is calculated on the straight line method. Charging depreciation commences control the use of an identified asset for a period of time in exchange of consideration, then the bank consider the contract as a lease
from the month of acquisition (for full month) and ceases at the month when the assets are disposed. No depreciation is charged on contract.
capital work in progress until the usage of the assets.
The bank as a lessee applies a single recognition and measurement approach for all leases, except for short-term leases, or, and
The rates and useful lives at which fixed assets are depreciated for current and comparative years are given below:
lease of low value of assets. The bank recognises lease liabilities to make lease payment and right-of-use assets representing the
right to use the underlying assets.
Rate of depreciation/
Category Estimated useful lives (Years)
amortisation per annum If tenor of a lease contract does not exceed twelve months from the date of initiation/application, the bank considers the lease
Building 40 2.50% period as short term in line with the recognition threshold of ROU assets as per FA policy of the bank. In case of low value, the
Furniture and Fixture 10 10.00% Bank, on lease-by-lease basis, elected a single threshold on the basis of materiality level of Bank's total capital BDT 33,144 million.
The reason behind considering the materiality level is that the bank operates many ATM booths, sub-branches with short and
Machineries and equipment 5 20.00%
single contracts; recording of which as ROU assets would inflate the balance sheet both in assets and liabilities. Moreover, frequent
Electromechanical equipment 20 5.00% changes of those establishments would create misreporting as well as complexity in recording.
Digital banking equipment 8 12.50%
Right-of-use assets (ROU):
Computer and network equipment 5 20.00%
Vehicles 5 20.00% The bank recognises the right-of-use assets (RoU) at the commencement date of the lease (i.e. the date the underlying asset
Software 5 20.00% is available for use). RoU assets are measured at cost less any accumulated depreciation and impairment of losses and
adjusted for any measurement of lease liabilities. The cost of ROU assets includes the amount of lease liabilities recognised,
Repairs and maintenance are charged to profit and loss account as expense when incurred. initial direct cost incurred, and lease payment made at or before the commencement date less any lease incentives received.
Right-of-use assets are depreciated on a straight line basis over the lease term, or remaining period of the lease term.
Capital work in progress
Cost incurred for software development, licensing and implementation; hardware up-gradation and related other cost incurred as The bank assessed all lease contracts live in 2020 and recognised as RoU of assets of all leases, except short term and low value of
capital expenditures are recognised as capital work in progress as per IAS 16, until the development or implementation work is assets as per the Banks’ own policy set as per IAS 16 and IFRS 16. As leases under IFRS 16 has been first time adopted by the bank,
completed and the asset is ready for intended use. This asset is stated at cost and depreciation/amortisation of the asset is charged the bank followed modified retrospective approach of adoption with the date of initial application of 01 January 2019. However, in
from the date of its intended use. 2020, the bank reassessed all RoU of assets recorded in 2019 and new lease contracts made on or later from 01 January 2020. The
RoU assets are presented in the note 8.0 of these financial statements.
Derecognition of fixed assets
Lease Liabilities (Bank as a lessee):
The carrying amount of an item of fixed assets is derecognised on disposal or when no future economic benefits are expected from
its use or disposal. The gain or loss arising from derecognition of an item of fixed assets is to be recorded in profit or loss when the At the commencement of the lease, the bank recognises lease liabilities measured at the present value of lease payments to be made
item is derecognised. over the lease term. The lease payments include fixed and variable lease payment (less any adjustment for initial payment), and
amount is expected to be paid under residual value of guarantees. The lease payments also include the exercise price of purchase
Details of fixed assets are presented in note 8 and Annexure - A of these financial statements. option reasonably certain to be exercised by the bank and payment of penalties for terminating the lease.
v) Intangible assets In 2020, the bank reassessed all lease payment of existing contracts for remaining period considering a cut-off date i.e. 01 January
Intangible asset is an identifiable non-monetary asset without physical substance. The Group classifies its intangible assets as per 2020. The lease liabilities are presented in the note 13.11 of these financial statements.
IAS 38 Intangible assets which comprises the value of all licensed computer software including core banking software of the Bank, Bank as a lessor:
cards management software, cheque processing software (i.e. BEFTN), software of subsidiaries and other integrated customised
software for call centre, ATM service, Finance and HR operations i.e. PMS, FAR, HRMS, PMS, etc. Leases where the bank does not transfer substantially all of the risk and benefit of ownership of any asset are classified as operating
assets. Rental income is recorded as earned based on the contractual term of the lease. However, the Bank did not hold any such
Recognition, subsequent expenditure and measurement assets in 2020.
The Group recognises an intangible asset if it is probable that future economic benefits that are attributable to the assets will flow to Recognition of consideration made under contract in exchange of use of rental premises/assets:
the entity and the cost of the asset can be measured reliably in accordance with IAS 38 Intangible Assets. The Group does not have
any intangible assets with indefinite useful lives. As per IFRS 16, when consideration is made by the bank under contract in exchange of use of rental premises or assets for a period
not exceeding a period of twelve months, and or, the present value of the obligation plus initial payment under contract does not
Subsequent expenditure on intangible asset of the Group is capitalised only when it increases the future economic benefits embodied exceed the threshold of the bank, and substantially all the risk and benefit of ownership of those rental premises/assets does not
in the specific assets to which it relates; otherwise is charged as expense when incurred. transfer to the bank, then the bank considers the payment (other than advance payment) as rental expense under IFRS 15 Revenue
Intangible assets are derecognised on disposal or when no future economic benefits are expected from their use. Gain or loss arising from contracts with customers.
from derecognition of an intangible asset is measured as the difference between the net disposal proceed and the carrying amount of Therefore, in 2020, EBL recognised those payment against contracts that do not qualify as lease item under IFRS 16 as rental expense which
that intangible asset and are recognised in profit and loss account. is presented in note 28 of the financial statements for the year ended 31 December 2020. These are short term and low value contracts for
Core banking software of EBL ATM booths, godown and small/ sub-branch premises that do not meet the materiality threshold for recognition of lease assets.

The core banking software used by EBL (not by subsidiaries) represents the value of application software licensed for the use of the vii) Other assets
Bank. The value of the software is carried at cost less accumulated amortisation. Initial cost comprises license fees paid at the time As per BRPD circular no. 14 dated 25 June 2003, other assets/item(s) have been shown separately as 'income generating' and 'non-
of purchase and other directly attributable costs incurred for customising the software for its intended use. The value of the software income generating' in the relevant notes to the financial statements. Other assets include investment in subsidiaries, TREC of DSE &
is amortised using the straight line method over the estimated useful life of 5 (five) years commencing from the month at which the CSE, advance for revenue and capital expenditure, stocks of stationary and stamps, security deposits to government agencies, other
application of the software is made available for use. receivables etc.
vi) Leases viii) Non-banking assets
As per IFRS 16 Leases, the bank has made recognition, measurement and disclosure in the financial statements-2020 both as Lessee Non-banking assets were acquired due to failure of borrowers to repay the loan on time taken against mortgaged properties. The
and Lessor from the date of commencement or 01 January 2019 (date of initial application), whichever is later. Bank was awarded absolute ownership on few mortgaged properties (mostly land) through the verdict of the honourable court under
section 33 (7) of the Artharin Adalat Act 2003. The value of the properties has been recognised in the financial statements on the basis
of third party valuation and reported as non-earning assets. Value of the assets received in addition to the loan outstanding has been
kept as reserve against non-banking assets. Party wise details (including possession date) of the properties are separately presented
in note 10 and Annexure - D1.

214 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 215
 Financial Reports
ix) Impairment of assets xi) Provision for liabilities and accrued expenses
An asset is impaired when its carrying value exceeds its recoverable amount as per IAS 36 Impairment of assets. At the end of each In compliance with IAS 37 Provisions, contingent liabilities and contingent assets, provisions for other liabilities and accrued expenses
reporting period, the Bank and its subsidiaries review the carrying value of financial and non-financial assets (other than investment are recognised in the financial statements when the Bank has a legal or constructive obligation as a result of past event, it is probable
in subsidiaries) and assess whether there is any indication that an asset may be impaired and/or whenever events or changes in that an outflow of economic benefit will be required to settle the obligation and a reliable estimate can be made of the amount of the
circumstances indicate that the carrying value of the asset may not be recovered. If any such indication exists, the bank and the obligation.
subsidiaries make an estimate of the recoverable amount of the asset. The carrying value of the asset is reduced to its recoverable
xii) Retirement/post-employment benefits
amount if the recoverable amount is less than its carrying amount with associated impairment losses recognised in the profit and
loss account. However, impairment of any financial assets is guided by relevant Bangladesh Bank circulars/instructions and IFRS 9. The Bank contributes to a defined contribution plan (Provident Fund) and two defined benefit plans (gratuity fund and superannuation
fund) in compliance with the provisions of IAS 19 Employee benefits. Three local subsidiaries i.e. EBLSL, EBLIL & EBLAML of the Bank
B. Liabilities and provisions
have also been maintaining provident fund and gratuity fund under separate trustee boards.
i) Borrowing from other banks, financial institutions and agents
Defined contribution plans
Borrowing from other banks, financial institutions and agents include interest bearing borrowings which are stated in the financial
Post-employment benefit plans under which rate of contributions into the plan is fixed. Any payment out of the plan to eligible
statements at principal amount. However, interest payable on such borrowings are reported under other liabilities.
outgoing members is based on the size of the ‘fund’ that comprises cumulative contributions made into the scheme and investment
ii) Debt securities (subordinated debt) returns on scheme assets. The Group maintains one funded defined contribution plan i.e. provident fund for its employees under a
trustee board.
The Bank issued 7-year non-convertible floating rate subordinated debts in two phases mainly to increase Tier-2 capital having
received required approval from Bangladesh Bank and BSEC. Principal amount outstanding against the debt is reported under long Provident fund
term borrowing and interest payable of which is reported under other liabilities. Details of subordinated debt is given in note 11.1.a
The Bank operates a contributory provident fund (recognised by National Board of Revenue or NBR on 31 July 1997) for its permanent
of the financial statements.
employees funded by the employees (10% of basic salary) and the Bank equally. The Bank’s contribution is made each month and
iii) Deposits and other accounts recorded under salary and allowances. This fund is managed by a separate trustee board i.e. 'EBL Employees Provident Fund Trust'
and any investment decision out of this fund is made separately by that independent Board of Trustees. Subsidiaries of the Bank also
Deposits and other accounts include non-interest bearing current deposits redeemable at call, interest bearing short-term deposits,
operate separate contributory provident funds for its permanent employees funded by both the employees and organisation equally.
savings deposits and fixed deposits which are initially measured at the consideration received. These items are subsequently
measured and accounted for at the gross value of the outstanding balance in accordance with the contractual agreements with the Amount charged in profit and loss account as expense on defined contribution plan of the group is detailed in note 27 of these
counterparties. financial statements.
iv) Other liabilities Defined benefit plans
Other liabilities comprise items such as provision for loans and advances/investments, provision for taxes, interest payable on Post-employment benefit plans those define the amount that outgoing members will receive from the plans on separation on the
borrowing, interest suspense and accrued expenses etc. Individual item-wise liabilities are recognised as per the guidelines of bases of length of service and salary levels.
Bangladesh Bank and International Financial Reporting Standards.
Contributions are made by the Bank into the scheme based on actuarial valuation. The Bank has an obligation to make up any
v) Dividend payments
shortfall in the plan, thereby bearing the risk of the plan under performing. The Bank maintains two defined benefit plans i.e.
Interim dividend is recognised only when the shareholders' right to receive payment is established. Final dividend is recognised when gratuity fund and superannuation fund for its employees under two separate trustee boards. Three local subsidiaries (EBLSL, EBLIL
it is approved by the shareholders in AGM. However, the proposed dividend for the year 2020 has not been recognised as a liability & EBLAML) also maintain a funded defined benefit plan i.e. 'Gratuity fund' under separate trustee boards.
in the balance sheet in accordance with IAS 10 Events after the reporting period. Dividend payable to the Bank’s shareholders is
Gratuity fund
recognised as a liability and deducted from the shareholders’ equity in the period in which the shareholders’ right to receive payment
is established. The Bank operates a funded gratuity scheme recognised by NBR with effect from 1 January 1997. This fund is managed separately by 'EBL
Employees Gratuity Fund Trust' and any investment decision out of this fund is also made by this Board of Trustees. The benefit is paid on
vi) Provision for loans and advances
separation to the eligible employees i.e. who have completed at least 5 (five) years of continuous service. As per the Bank's policy, eligible
Provision for classified loans and advances is made on the basis of quarter-end review by the management and in compliance with employees are provided with the benefit equal to the latest monthly basic salary multiplied by applicable rates that varies as per service length.
BRPD circular no. 14 dated 23 September 2012, BRPD circular no. 16 dated 18 November 2014 and BRPD circular no. 3 dated 21 April
2019, BRPD Circular no. 16 dated 21 July 2020, BRPD Circular no 17 dated 28 September 2020, BRPD Circular Letter no 52 dated 20 Contribution to gratuity fund is made monthly on the basis of actuarial valuation made each year, or immediately after any major
October 2020 and BRPD Circular Letter no 56 dated 10 December 2020. Details of provisioning are stated in note 13.4 of these financial change in the salary structure that could impact the periodic amount of contributions. Last actuarial valuation was done based on
statements. 30 September 2020. As per this valuation, effective from 1 October 2020, a contribution of 18.3% of basic salary is transferred to the
fund per month until the next actuarial review is carried out. During 2020, BDT 240.24 million has been contributed into the fund by
vii) Provision against investment in capital market
the bank on solo basis.
Provision for diminution of value of quoted shares and mutual funds (closed-end) has been made on portfolio basis (gain net off) as
Superannuation fund
per DOS circular No. 4 dated 24 November 2011 and DOS circular letter no. 3 dated 12 March 2015 and placed under other liabilities.
For unquoted shares provision has been made on the basis of available net assets value (NAV) or recoverable value (whichever is The Bank operates a recognised superannuation fund effective from 20 November 1999 which is governed by the trust deed of 'EBL
lower) of shares. As on the reporting date, the Bank does not hold any open-end mutual fund. Details are stated in note 13.8 of these Employees Superannuation Fund Trust'. As per the trust deed, benefit is payable to the eligible employees of the Bank as per their
financial statements. grade, length of service etc. Last actuarial valuation of the fund was carried out based on 30 September 2020. As per the valuation,
effective from 1 October 2020, BDT 1.69 million is to be contributed to the fund each month until the next actuarial valuation is done.
viii) Provision for off-balance sheet exposures
During 2020, BDT 14.08 million has been contributed into the fund by the Bank on solo basis.
In compliance with BRPD circular no. 14 dated 23 September 2012 and related earlier circulars, the Bank has been maintaining
Details i.e. actuarial liability, valuation method, service cost, required contribution etc. of defined benefit plans and amount recognised
provision @ 0% to 1% against off-balance sheet exposures (mainly contingent assets/liabilities).
in profit & loss account are stated in note 13.12of these financial statements.
ix) Provision for other assets
Workers Profit Participation Fund
Provision for other assets is made following BRPD circular No. 14 dated 25 June 2001. Full provision is kept on other assets which are
Consistent with widely accepted industry practice and in line with section 11(1) of the Banking Companies Act 1991 (as amendment
outstanding for one year or more or classified as Bad/Loss.
up to date) and subsequent clarification given by Bank & Financial Institutions Division (BFID), Ministry of Finance, no provision has
x) Provision for nostro accounts been made by the Bank in the reporting period against Workers Profit Participation Fund (WPPF).
Provision for unsettled transactions in nostro accounts is made as per FEPD circular no. FEPD (FEMO)/01/2005-677 dated 13 Other long-term benefits
September 2005 of Bangladesh Bank. On the reporting date, the Bank has no unsettled transactions outstanding for more than 3
The Bank's obligation in respect of long term benefit other than gratuity fund and superannuation fund is the amount of future
months and no provision has been made in this regard.
benefits that employees have earned i.e. earned leave encashment in return for their service in the current and prior periods. The
nature of this benefit to the eligible employees is encashment of earned leave up to maximum 90 days which is calculated based on
last Basic Salary, House rent and Medical allowance and is paid at the time of paying end service benefit. The Bank has kept required
provision against liability for earned leave encashment as per actuarial valuation.

216 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 217
 Financial Reports
The Group does not have any other long term employee benefit plans. iii) Fees and commission income
Short term benefits Fees and commission income arising from services provided by the Bank are recognised as income on earned basis as per IFRS 15
Revenue from contracts with customers. Fees and commission charged to customers on trade finance i.e. L/C, L/G, acceptance and
Short term employee benefits i.e. group insurance policy, hospitalisation facilities etc. are expensed as the related service is provided
other general banking services i.e. card services, management fees, arrangement fees, locker charges etc. are recognised as income
to the eligible employees as per EBL people management policy. Liability is recognised only for the amount expected to be paid if the
when a performance obligation is satisfied by transferring a promised service to customer by the bank, and at the time of effecting
Group has a present legal or constructive obligation to pay any amount as a result of past service provided by the employee and the
the transactions except those which are received in advance.
obligation can be estimated reliably.
iv) Income from investments (non-interest income)
xiii) Contingent liabilities
Non-interest investment income i.e. gain/loss arising from trading in government securities (HFT), quoted and unquoted shares &
Contingent liabilities which include certain guarantees and letters of credit pledged as collateral are possible obligations that arise
mutual funds are recognised in profit and loss account at the time of effecting the transactions except those which are restricted by
from past events whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events
Bangladesh Bank.
not within the control of the Bank. Contingent liabilities are not recognised in the financial statements as per IAS 37 Provisions,
contingent liabilities and contingent assets. However, disclosure on contingent liabilities have been made on the face of balance sheet v) Foreign exchange gain/(loss)
under off-balance sheet items as per the guidelines of BRPD circular No. 14 dated 25 June 2003.
Exchange income includes all gain and losses from foreign currency day to day transactions, conversions and revaluation of non
C. Share capital and reserves monetary items.
i) Authorised and issued capital vi) Dividend income
The authorised capital of the Bank is the maximum amount of share capital that the Bank is authorised by its Memorandum and Dividend income from investments in quoted and unquoted securities including subsidiaries is recognised at the time when it is
Articles of Association to issue (allocate) among shareholders. This amount can be changed by shareholders' approval upon fulfilment declared, ascertained and right to receive the payment is established.
of relevant provisions of the Companies Act 1994. Part of the authorised capital usually remains unissued. The part of the authorised
vii) Interest paid on borrowings, deposits and others
capital already issued to shareholders is referred to as the issued share capital of the Bank.
Interest paid on borrowings and deposits are calculated on 360 days basis (except for some treasury instruments which are calculated
ii) Paid-up capital
on 364 days basis) in a year and recognised on accrual basis. Interest on lease liabilities are accounted for as per IFRS 16 Leases.
The paid-up capital represents the amount of Bank’s capital that has been contributed by ordinary shareholders. The ordinary
viii) Management and other expenses
shareholders are entitled to receive dividend as recommended by the Board and subsequently approved by the shareholders from
time to time in the Annual General Meeting (AGM). Expenses incurred by the Bank are recognised on accrual basis when a performance obligation is satisfied by receiving a promised
service by the bank as per IFRS 15 Revenue from contracts with customers.
iii) Share premium
ix) Taxation
The share premium represents the excess amount received by the Bank from its shareholders over the nominal/par value of its share.
The amount of share premium can be utilised as per the provision of section 57 of the Companies Act 1994. Currently, the Bank does The expense comprises current and deferred tax. Current tax and deferred tax is recognised in profit or loss except to the extent that
not have any share premium. it relates to a business combination or items recognised directly in equity.
iv) Statutory reserve Current tax
In compliance with the provision of section 24 of the Banking Companies Act 1991 (as amended up to date), the Bank is to transfer Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the
at least 20% of its profit before tax (PBT) to statutory reserve each year until the sum of statutory reserve and share premium (if reporting date and any adjustment to the tax payable in respect of previous years.
any) equal to the paid up capital of the Bank. In 2020, no amount has been transferred to statutory reserve account since there is no
Provision for current income tax of the Bank has been made on taxable income @ 37.5 % considering major disallowances of expenses
requirement for transfer as the balance of the reserve account is equal to the paid-up capital of the Bank. Details are stated in note 15
and concessional rates on certain incomes (0% on gain from govt. securities, 10% on capital gain of shares & mutual funds and
of these financial statements.
20% on dividend income) as per Income Tax Ordinance (ITO) 1984. Tax provision of the Group entities is made on taxable income of
v) Asset revaluation reserve subsidiaries at different rates applicable as per the ITO 1984 and the tax authority of the country where it is incorporated.
When an asset’s carrying amount is increased as a result of revaluation, the increased amount (netting off deferred tax liability) Deferred tax
which may arise against such revaluation gain (as per IAS 12 Income tax), is credited directly to equity under the heading of assets
Deferred tax assets or liabilities are recognised by the Bank on deductible or taxable temporary differences between the carrying
revaluation reserve as per IAS 16 Property, plant and equipment. Apart from financial assets, the Bank revalues its lands following
amount of assets and liabilities used for financial reporting and the amount used for taxation purpose as required by IAS 12 Income
relevant circulars of Bangladesh Bank and Bangladesh Securities & Exchange Commission.
taxes and BRPD circular no.11 dated 12 December 2011. Deferred tax assets is recognised for the carry forward of unused tax losses
vi) Reserve for amortisation/revaluation of securities and unused tax credits to the extent that it is probable that future taxable profit will be available against which they can be used.
Deferred tax assets and liabilities are reviewed at each reporting period and are measured at the applicable tax rate as per tax laws
When the value of a government treasury security categorised as HTM increases as a result of amortisation, the amount thus increased
that are expected to be applied when the assets is realised and liability is settled. Any unrecognised deferred tax assets or liabilities
is recognised directly to equity as reserve for amortisation. However, any increase in the value of such securities categorised as HFT
are reassessed at each reporting period and recognised only if that has become probable that future taxable profit or loss will be
as a result of mark to market is booked under equity as revaluation reserve but any decrease is directly charged to profit and loss
available against which they can be used or settled.
account as per Bangladesh Bank DOS circular letter no. 5 dated 26 May 2008 & DOS circular letter no. 5 dated 28 January 2009.
In reality, buyers bear the tax on behalf of sellers at the time of land registration and taxes paid at the time of land registration are final
D. Revenue recognition
discharge of related tax liability of the seller (Bank). Hence, no deferred tax liability has been recognised on land revaluation reserve
i) Interest income of the Bank. Deferred tax asset on provision against diminution of value of quoted securities has not been recognised as adjustment
of loss (for set off against gain under the same head) u/s 37 and u/s 40 of ITO 1984 is uncertain due to market volatility.
Interest on unclassified loans and advances (except those of rescheduled and stay order accounts) is recognised as income on accrual
basis, interest on classified loans and advances (including rescheduled and stay order accounts) is credited to interest suspense Details of deferred tax assets or liabilities and amount recognised in profit and loss account for deferred tax income or expense are
account with actual receipt of interest there from credited to income as and when received as per instruction contained in BRPD given in note 9.10 in the financial statements.
circular no. 14 dated 23 September 2012, BRPD circular no. 19 dated 27 December 2012, BRPD circular no. 16 dated 18 November
Assessment for uncertainty over income tax treatments (under IFRIC 23):
2014, BRPD circular no. 03 dated 21 April 2019, BRPD circular no. 8 dated 12 April 2020, BRPD circular no 12 dated 10 June 2020, BRPD
circular no 17 dated 28 September 2020 and BRPD circular letter no 56 dated 10 December 2020. At reporting date, the Bank assessed to consider uncertain tax treatment separately or together in line with Income Tax ordinance and
rules 1984. The Bank applies significant judgement and past records of tax assessment and demand in identifying uncertainties over
ii) Income from investments (interest and others)
income tax treatments. Since, the Bank is being operated as complex financial intermediary to provide a comprehensive financial
Income on investments in Government and other securities, debentures and bonds is accounted for on accrual basis as per the solutions to customers, it assessed whether the Interpretation of IFRIC 23 Uncertainty over income tax treatments had an impact
provisions of IFRS 15 Revenue from contracts with customers and relevant Bangladesh Bank guidelines. on its consolidated financial statements. Upon adoption of the interpretation, the Bank considered whether it has any uncertain
tax positions, particularly those relating to transfer pricing, payment under credit facilities etc. The Bank determined, on its tax
compliance and best practice, it is probable that its tax treatments (including those for the subsidiaries) will be accepted by the
taxation authorities. The interpretation did not have an impact on the consolidated financial statements of the Bank.

218 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 219
 Financial Reports
E. Others Segment Name Description
Deals with the full range of commercial banking products and services
i) Materiality and aggregation DBO (Domestic Banking Operation- Onshore Banking) offered by four different business units: Corporate, Commercial, Retail
Banking and Treasury.

SOLO
Each material class of similar items has been presented separately in the financial statements. Items of dissimilar nature also have
been presented separately unless they are immaterial in accordance with IAS 1 Presentation of financial statements. Deals with loans, deposits and related banking transactions in freely
ii) Offsetting OBO (Offshore Banking Operation) convertible foreign currencies with eligible Corporate customers in
EPZs, PEPZs, Ezs and Hi-tech Parks.
Financial assets and liabilities are offset and the net amount is presented in the balance sheet when there is a legally enforceable It buys, sells and deals with capital market securities i.e shares, Mfs,
right to offset the recognised amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability EBL Securities Limited (EBLSL) debentures etc., on behalf of customers and provides margin facilities
simultaneously. Advance tax paid and provision for tax of the Bank is presented on net basis under liabilitiy as the amount of tax etc.
liability is higher than advance tax. Deferred tax(DT) assets and DT liabilities of the bank is presented on net basis under asset as
It offers all kinds of merchant banking activities i.e. issue management,

CONSOL
the amount of DT asset is higher than DT liability. Card revenues and expenses earned and incurred on shared basis and are directly EBL Investments Limited (EBLIL)
underwriting, portfolio management and other transactions.
attributable to, are presented on net off basis i.e. interchange reimbursement (IRF) & acquiring fees, risk assurance premium &
merchant service commission. However, details breakup of cards revenue and expense are given in note 25.1.a. EBL Finance (HK) Limited (EBLFHKL) It deals with trade finance and off-shore banking business in Hong Kong.
It is to carry out business on asset management, portfolio management,
iii) Comparative information
EBL Asset Management Limited (EBLAML) capital market operation, equity investment, financial services i.e.
Comparative information including narrative and descriptive one is disclosed in respect of the preceding period where it is relevant corporate advisory, merger & acquisition, corporate restructuring etc.
to enhance the understanding of the current period's financial statements.
Information regarding the results of each reportable segment is included in Annexure - E. Performance is measured based on
Certain comparative amounts in the financial statements are reclassified and rearranged where relevant, to conform to the current segment revenue and profit, as included in the internal management reports that are reviewed by the management committee of the
year's presentation. Bank. Segment profit is used to measure performance as management believes that such information is relevant in evaluating the
iv) Earnings per share (EPS) results of certain segments.

As per IAS 33 Earnings per share, the Bank has been reporting basic earning per share as there has been no dilution possibilities ix) Risk management and other related matters
during the year. Basic EPS is computed by dividing the profit or loss attributable to ordinary shareholders of the Bank by the number Financial Institutions are in the business of taking calculative risk and it is important how a bank decides on its risk appetite. EBL
of ordinary shares outstanding during the period. Bonus shares issued (if any) in current period are considered for number of ordinary firmly believes that robust risk management is the core function that makes its business sustainable. The risk management systems
shares outstanding for preceding period to present comparative EPS with retrospective adjustment i.e. restated EPS. in place at the Bank are discussed below:
v) Related party transactions a) Credit risk
Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant Credit risk is the risk of loss that may occur from the default of any counterparty to repay in accordance with agreed terms and
influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject conditions and/or deterioration of creditworthiness. Board of Directors is the apex body for credit approval of the Bank. However, they
to common control or common significant influence. delegate authority to the Managing Director & CEO or other officers of the Credit Risk Management (CRM) Division. The Board also
sets credit policies to the management for setting procedures, which together has structured the CRM framework in the bank. The
Related party transaction is a transfer of resources, services, or obligations between related parties, regardless of whether a price Credit Policy Manual (CPM) contains the core principles for identifying, measuring, approving and managing credit risk in the bank.
is charged as per IAS 24 Related party disclosures, Bangladesh Bank & BSEC guidelines. Details of the related party transactions The policy covers corporate, retail, Small and Medium Enterprise (SME) exposures. Policies and procedures together have structured
have been disclosed in Annexure - C and Annexure - C1. The Bank carries out business with related parties in the ordinary course of and standardized CRM process both in obligor and portfolio level. There is a comprehensive credit appraisal procedure that covers
business on an arm's length basis at commercial rates except for those transactions that the key management personnel have availed industry/business risk, management risk, financial risk, facility structure risk, security risk, environmental risk, reputational risk, and
at concessionary rates which is applicable to all the eligible staffs/customers. The Bank did not have any related party transaction account performance risk.
exceeding this threshold as at the end of 2020.
Management, at least once in a quarter, reviews credit exposures and portfolio performance of corporate and SME (M) under a clearly
Transactions between the Bank and its subsidiaries and outstanding amount within the group have been disclosed in Annexure - C1. set out ‘early alert’ policy. If early alerts are raised, account plans are then re-evaluated; remedial actions are agreed and monitored.
vi) Reconciliation of books of account Remedial action includes, but not limited to exposure reduction, security enhancement, exit of relationship or immediate movement
of our Special Asset Management Division (SAMD).
Books of account in regard to inter-bank (in Bangladesh and outside Bangladesh) as well as inter-branches are reconciled at regular
intervals to keep the unreconciled balances within non-material level. The bank follows the criteria for loan classification and provisioning requirement as stipulated in the BRPD Circular no.14 dated 23
September 2012, BRPD circular no 8 dated 2 August 2015, BRPD circular no 12 dated 20 August 2017, BRPD circular no 15 dated 27
vii) Events after the reporting period September 2017, BRPD circular letter no 1 dated 03 January 2018, BRPD circular no 01 dated 20 February 2018, BRPD circular no 07
While the overall effect of COVID-19 global pandemic on Bank's business in the post years is still evolving at this point, there has been limited dated 21 June 2018, BRPD circular no 13 dated 18 October 2018 and BRPD Circular No. 03 dated 21 April 2019, BRPD circular no 16
impact assessed on the business since the outbreak. The board and management have been regularly monitoring the potential impact of the dated 22 July 2020, BRPD circular letter no 52 dated 20 October 2020, BRPD circular no 17 dated 28 September 2020, BRPD circular
pandemic on the Bank as the situation is yet to be normal but it's being assured that any foreseeable adverse impact can be reasonably managed. letter no 56 dated 10 December 2020. The bank has maintained adequate provision against impaired loans including certain UC
accounts having payment by deferral facilities following relevant circulars of Bangladesh Bank. Details of which are stated in note
All other material events after the reporting period have been considered and appropriate adjustments/disclosures have been made 13.4 to the financial statements.
in the financial statements as per IAS 10 Events after the reporting period. Board’s recommendation for dividend distribution is a b) Liquidity risk
common item presented in the note 42.
Responsibility of managing and controlling liquidity of the bank lies with Asset Liability Committee (ALCO) that meets at least
viii) Operating segments once in a month. Asset Liability Management (ALM) desk being primarily responsible for management of liquidity risk closely
The Group has identified following six reportable segments which are the Group's major strategic business units/entities. The monitors and controls liquidity requirements on a daily basis by appropriate coordination of funding activities. A monthly projection
strategic business units offer different products and services, and are managed separately based on the management and internal of fund flows is reviewed in ALCO meeting regularly. On monthly basis, ALCO monitors liquidity management by examining key
reporting structure of the group. For each of the strategic business units, the Group's/Bank's Management Committee reviews internal ratios, maximum cumulative outflow, upcoming funding requirement from all business units, asset-liability mismatch etc.
management reports on quarterly basis. The following summary describes the operations in each of the reportable segments:
ALCO also monitors concentration of deposits on large institutional depositors which is volatile in nature. In addition to these ratios,
Bank prepares structural liquidity profile, maturity profile of term deposit, cash flow modelling and contingency funding plan on
monthly basis, which are analysed in ALCO meeting to ensure liquidity at the level acceptable to the Bank and regulators.

220 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 221
 Financial Reports
c) Market risk i) Prevention of money laundering and terrorist financing
Risk Management Division (RMD) is responsible for overall monitoring, control and reporting of market risk. Treasury mid office of Bank undertakes a series of activities in assessing, monitoring and disclosing risk related transactions done by customers with ‘zero-
RMD is an integral part of market risk management which independently evaluates and monitors treasury department’s transaction tolerance’ on issues like Anti-money Laundering (AML) and Combatting Financing of Terrorist (CFT). The bank has established a
from risk perspective. Overall risk parameters and exposures of the bank are monitored by RMD and periodically reported to Executive control framework for strict compliance with all regulatory directives issued from Bangladesh Financial Intelligence Unit with regard
Risk Management Committee (ERMC). Market risk can be subdivided into three categories depending on risk factors: interest rate risk, to AML & CFT. For prevention of Money Laundering and Terrorist Financing, the bank has formed Central Compliance Committee
foreign exchange risk, and equity price risk. (CCC) to ensure collective participation of different departments in comprehensive AML and CFT program. Under direction of the
CCC and Chief Anti Money Laundering Compliance Officer (CAMLCO), AML Department implements different programs across the
d) Interest rate risk
bank. Moreover, Branch AML Compliance Officers (BAMLCOs) and Department AML Compliance Officers (DAMLCOs) are nominated to
Interest rate risk is the risk to earnings or capital of the bank arising from movement of interest rates. The movement of interest ensure monitoring at root level. Apart from this, EBL has on-boarded an automated sanction screening and transaction monitoring
rates affects bank’s reported earnings and capital by changing: software (AML System Velocity) to establish a robust monitoring system. Currently, eight sanction lists; UN, OFAC SDN, OFAC non-
- Net interest income SDN, EU, UK, Canadian, Australian and a local sanction list, are incorporated in the system for sanction screening. In transaction
- The market value of trading accounts (and other instruments accounted for by market value), and monitoring module, 60 transaction monitoring rules and 58 transaction monitoring reports are incorporated to identify suspicious/
- Other interest sensitive income and expenses. unusual transactions.
To manage interest rate risk, ALCO regularly monitors various ratios and parameters. The Bank deploys several analysis techniques
j) Information and communication technology risk
(e.g. rate sensitive gap analysis, duration gap analysis) to measure interest rate risk, its impact on net interest income and takes
insight about course of actions. EBL adheres to the IT Security policies and procedures in line with ICT Security guideline of Bangladesh Bank. EBL has been certified
by international accreditation certification on data security i.e. Payment Card Industry Data Security Standard (PCI DSS) in 2016 and
e) Foreign exchange risk
maintaining the compliance since then. In the year 2020, EBL achieved ISO 27001:2013 Standard Compliance Certification for consecutive
Foreign exchange risk is the risk that a bank’s financial performance or position will be affected by fluctuations in the exchange rates 2nd years as recognition of maintaining confidentiality, integrity and availability of IT systems and data in quality manner. To prevent
between currencies and implied volatility on foreign exchange options. Bank makes import payment and outward remittance as its attack from Cyber criminals/fraudsters, EBL ICT division has established standard physical and logical security measures for all sensitive
outflow, whereas it gets foreign currency inflow as export receipts and inward remittance. Exchange rate risk arises, if, on a particular IT infrastructures (e.g., Data Centre, Disaster Recovery Site, Power Rooms, Server Rooms, etc.). Besides, EBL has standard logical ICT
day, these inflow-outflows don’t match and bank runs its position long/short from these customer driven activities. Bank also faces security measures like access control system, intrusion detection, access log and periodic security assessment for all systems. To better
foreign exchange risk if it sources its funding in one currency by converting fund from another currency. Currently, the Bank is facing monitor security incidents EBL has implemented SIEM (Security Information & Event Management) solution. Vulnerability assessment
such transaction exposure in foreign currency for its off-shore banking unit. But these transactions exposure is always hedged. exercises, both internally and externally, are conducted regularly to identify security weakness and establish control for mitigation.
EBL has Business Continuity Management (BCM) to manage any manmade or natural incident/disaster. IT Security team has also
The Bank computes VaR (Value at Risk) on its foreign exchange position arising from customer driven foreign exchange taken initiatives to create awareness about cybersecurity among all EBL employees and customers through retail and corporate
transactions at 95% confidence level on daily basis. The Bank maintains various nostro accounts in order to conduct operations channels. We have separate information system audit to identify control gaps and improve continually.
in different currencies. The position maintained by the Bank at the end of the day is within the stipulated limit prescribed by
k) Internal audit
the Bangladesh Bank.
The Bank has an independent and functional internal audit department to perform risk based audit on various business and
f) Equity price risk
operational areas of the Bank on continuous basis. Audit rating is determined on the basis of audit policy and guidelines as approved
Equity price risk is the risk of losses caused by changes in equity prices. These losses could arise because of changes in the value of listed by the board. The objective of internal audit is to examine and evaluate whether the process of risk management, internal control and
shares held directly by the bank; changes in the value of listed shares held by a bank subsidiary; changes in the value of listed shares governance are adequate and functioning properly. The objective also includes advising and recommending to higher management
used as collateral for loans whether the loan was made for the purpose of buying the shares; and changes in the value of unlisted shares. for improvements in internal control and risk management system. The Audit Committee of Board regularly reviews the internal
audit reports as well as monitor progress of previous findings. However, the Head of Audit being part of internal control & compliance,
Mark to Market is the tool bank applies for maintaining provision against losses arisen from changes in market price of securities. As reports to and is responsible to the audit committee of the Board.
of 31 December 2020, the Bank sets aside BDT 687 million charging its profit and loss account over the periods to cover unrealized
l) Prevention of fraud
loss against quoted and unquoted securities. EBL is also computing Equity VaR (Value at Risk) on its equity exposure at 95% and 99%
confidence level. The bank has a Board approved policy titled EBL Fraud and Theft Risk Prevention and Management Policy to minimize the incidence
and impact of fraud. Incidence of fraud or theft has become one of the inherent risks in banking business but can very well be avoided
g) Operational risk
or minimized by creating a highly regimented environment and harnessing a culture and value of transparency, accountability,
Operational risk includes legal and regulatory risk, business process and change risk, fiduciary or disclosure breaches, technology trust and teamwork. With this endeavour to encourage all employees to report perceived unethical or illegal conduct of employees to
failure, financial crime and environmental risk. appropriate authorities in a confidential manner without any fear of harassment, a 'Speak Up Policy' has been approved by the Board.
2A Credit rating of the Bank
Risk Management Division (RMD) enriched the scope of risk matrix/KRI for Operational Risk compiling both quantitative and
qualitative parameters as in regulatory frameworks and in the Bank’s risk appetite. This department collects required information As per BRPD circular no. 6 dated 5 July 2006, the Bank has done its credit rating by Credit Rating Information and Services Limited (CRISL)
from different sources in different frequencies from monthly to yearly interval. Based on source data RMD plots the results in the based on the audited financial statements as at and for the year ended 31 December 2019. The following ratings have been awarded:
risk matrix and escalate the critical and high risk issues to MANCOM, ERMC and RMC of the Board for guidance and to implement
Particulars Periods Date of rating Long term Short term
mitigation measures.
January to December
h) Monitoring activities and corrective measures Entity rating 22 June 2020 AA+ ST-1
2019
Operational risks are analyzed through the review of various control tools like Departmental Control Function Check List January to December
Entity rating 26 June 2019 AA+ ST-1
(DCFCL), Quarterly Operations Report (QOR), Loan Documentation Check List (LDCL), and Self-Assessment Anti-Fraud Internal 2018
Control Check list etc. The effectiveness of these control mechanisms are also evaluated through the self-assessment January to December
Entity rating 28 June 2018 AA+ ST-2
process for detecting high risk areas and mitigating the identified risks. The effectiveness of the Bank's internal control 2017
is monitored on an ongoing basis, high/low risk items are identified, monitored and annihilated as part of daily activities.

Monitoring department under Internal Control & Compliance Division (ICCD) is primarily responsible for risk identification, assessment
of effectiveness of internal control system, and risk mitigation including reporting of unresolved operational risk issues to the higher
authority. All the tools used for Monitoring are guided by regulatory guidelines and internal policies and circulars.

222 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 223
 Financial Reports
2B Compliance with International Financial Reporting Standards (IFRSs) 2B.1 Standards issued but not yet effective
The Bank has complied with following IFRSs & IASs as adopted by the Financial Reporting Council (FRC) during the preparation of A number of new standards and amendments to standards are effective for annual periods beginning on or after 01 January 2020 and earlier
financial statements as at and for the year ended 31 December 2020. application is permitted. However, the Bank has not early applied the following new standards in preparing these financial statements.
Name of IFRSs/IASs IFRSs/IASs No. Status IFRS 17 Insurance Contracts
Presentation of Financial Statements IAS 1 *Applied Summary of the requirements
Inventories IAS 2 N/A
IFRS 17 Insurance contracts establishes principles for the recognition, measurement, presentation and disclosure of insurance
Statement of Cash Flows IAS 7 *Applied contracts. The objective of the standard is to ensure that an entity provides relevant information that faithfully represents those
Accounting Policies, Changes in Accounting Estimates and Errors IAS 8 Applied contracts. Amended in 2016, the new IFRS will replace the existing guidance in IFRS 4 Insurance Contracts.
Events after the Reporting Period IAS 10 Applied
The standard is effective for annual periods beginning on or after 01 January 2021. Early adoption is permitted for entities that apply
Income Taxes IAS 12 Applied IFRS 9 and IFRS 15 on or before the date of initial application of IFRS 17.
Property, Plant and Equipment IAS 16 Applied
Possible impact on financial statements
Employee Benefits IAS 19 Applied
Accounting for Government Grants and Disclosure of Government The Bank is assessing the potential impact on its financial statements resulting from the application of IFRS 17.
IAS 20 N/A
Assistance 2C Audit Committee disclosures
The Effects of Changes in Foreign Exchange Rates IAS 21 Applied
Please refer to Report of the Audit Committee for details disclosures on audit committee presented in other information in the annual
Borrowing Costs IAS 23 N/A report.
Related Party Disclosures IAS 24 Applied
2.11 Approval of financial statements
Accounting and Reporting by Retirement Benefit Plans IAS 26 N/A
Separate Financial Statements IAS 27 Applied These financial statements were reviewed by the audit committee of the Board of the Bank in its 131 meeting held on 12 April 2021
and was subsequently approved by the Board in its 687 meeting held on the same date.
Investments in Associates IAS 28 N/A
Interests in Joint Ventures IAS 31 N/A
Earnings per share IAS 33 Applied
Interim Financial Reporting IAS 34 Applied
Impairment of Assets IAS 36 Applied
Provisions, Contingent Liabilities and Contingent Assets IAS 37 *Applied
Intangible Assets IAS 38 Applied
*Applied (for Hedge
Financial Instruments: Recognition and Measurement IAS 39
Accounting)
Investment Property IAS 40 N/A
Agriculture IAS 41 N/A
First-time Adoption of International Financial Reporting Standards IFRS 1 Applied
Share-based Payment IFRS 2 N/A
Business Combinations IFRS 3 Applied
Insurance Contracts IFRS 4 N/A
Non-current Assets Held for Sale and Discontinued Operations IFRS 5 *Applied
Exploration for and Evaluation of Mineral Resources IFRS 6 N/A
Financial Instruments: Disclosures IFRS 7 *Applied
Operating Segments IFRS 8 Applied
Financial Instruments IFRS 9 *Applied
Consolidated Financial Statements IFRS 10 Applied
Joint Arrangements IFRS 11 N/A
Disclosure of Interests in Other Entities IFRS 12 Applied
Fair Value Measurement IFRS 13 *Applied
Regulatory Deferral Accounts IFRS 14 N/A
Revenue from Contracts with Customers IFRS 15 Applied
Leases IFRS 16 Applied
* Subject to departure described in note 2.1
N/A = Not Applicable

224 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 225
 Financial Reports
Amount in BDT Amount in BDT
Consolidated Bank Consolidated Bank
Notes Notes
2020 2019 2020 2019 2020 2019 2020 2019
3 Cash 3.c Actual reserve held
Cash in hand (including foreign currencies) 3.1 3,218,511,774 3,088,367,831 3,218,381,880 3,088,303,685 Excess cash reserve (note 3.c.1) 1,772,553,701 324,130,038
Balance with Bangladesh Bank and its agent Bank(s) Cash held 3,218,381,880 3,088,303,685
(including foreign currencies) 3.2 12,480,410,176 16,601,918,975 12,480,410,176 16,601,918,975 Balance with Sonali Bank 313,007,027 333,301,281
15,698,921,950 19,690,286,806 15,698,792,056 19,690,222,660 Unencumbered approved securities (HFT) 20,283,860,750 8,120,908,402
Unencumbered approved securities (HTM) 30,230,792,860 23,802,384,256
3.1 Cash in hand (including foreign currencies) 55,818,596,219 35,669,027,661
Local currency 3.1.1 3,164,891,158 3,039,840,720 3,164,761,264 3,039,776,574
Foreign currencies 53,620,616 48,527,111 53,620,616 48,527,111 3.c.1 Excess cash reserve:
3,218,511,774 3,088,367,831 3,218,381,880 3,088,303,685 Balance with Bangladesh Bank* 11,653,908,501 14,366,004,280
3.1.1 Local currency Less: Required cash reserve on bi-weekly average basis (for DBO 4% & OBO 2% of ATDT)
9,881,354,800 14,041,874,242
With Bank 3,164,761,264 3,039,776,574 3,164,761,264 3,039,776,574 (5.5% of ATDTL for 2019)
With Subsidiaries 129,894 64,146 - - Excess of cash reserve as on the reporting date 1,772,553,701 324,130,038
3,164,891,158 3,039,840,720 3,164,761,264 3,039,776,574 *As per Bangladesh Bank Local & Foreign Currency Statement.

Balance with Bangladesh Bank and its agent 4 Balances with other banks and financial institutions
3.2
Bank(s) (including foreign currencies) Balance in Bangladesh 4.1 12,728,955,557 19,963,271,483 12,444,848,375 19,309,748,914
Bangladesh Bank Balance outside Bangladesh 4.2 664,331,924 4,405,925,232 558,299,302 9,647,145,392
Local currency 11,333,598,151 13,896,913,623 11,333,598,151 13,896,913,623 13,393,287,481 24,369,196,715 13,003,147,677 28,956,894,306
Foreign currencies 833,804,998 2,371,704,071 833,804,998 2,371,704,071 4.1 Balance in Bangladesh
12,167,403,149 16,268,617,694 12,167,403,149 16,268,617,694 In Current Deposit Accounts with:
Sonali Bank (An agent of Bangladesh Bank) - Banks 665,305,609 188,159,141 82,188,486 81,348,463
313,007,027 333,301,281 313,007,027 333,301,281
local currency Non-Bank Financial Institutions (NBFIs) - - - -
12,480,410,176 16,601,918,975 12,480,410,176 16,601,918,975 665,305,609 188,159,141 82,188,486 81,348,463
Less: Inter company elimination (with deposit account) (575,770,684) (99,404,947) - -
3.a Cash Reserve Ratio (CRR): 89,534,925 88,754,194 82,188,486 81,348,463
Pursuant to section 33 of Bank Company Act, 1991 (amended upto 2018), MPD circular no. 03 dated 09 April 2020 and BRPD circular In Special Notice Deposit Accounts with:
letter no. 31 dated 18 June 2020 issued by Bangladesh Bank, EBL has been maintaining CRR @ 3.5% and 1.5% on daily basis, and Banks 3,291,770,054 736,772,959 2,719,137,889 5,900,450
@ 4.0% and 2.0% on bi-weekly basis for DBO and OBO respectively. For 2019, CRR was maintained for DBO @ 5% and 5.5% on daily NBFIs - - - -
and bi-weekly basis respectively as per MPD circular No. 01 dated 03 April 2018 and DOS circular letter no. 26 dated 19 August 2019. 3,291,770,054 736,772,959 2,719,137,889 5,900,450
CRR requirement is calculated on the basis of weekly average total demand and time liabilities (ATDTL) of a base month which is Less: Inter company elimination (with deposit
(295,871,421) (84,755,671) - -
two months back of the reporting month (i.e. CRR of December 2020 is maintained on the basis of weekly ATDTL of October 2020). account)
Reserve maintained by the bank as at 31 December is as follows: 2,995,898,633 652,017,288 2,719,137,889 5,900,450

DBO OBO Solo-2020 Solo-2019 In Fixed Deposit/Placement Accounts with:

Average total demand and time liabilities of Banks 13,674,557,227 18,407,491,061 13,674,557,227 18,407,491,061
238,508,243,400 17,051,252,800 255,559,496,200 255,306,804,400 NBFIs 4,997,500,000 7,922,500,000 4,997,500,000 7,922,500,000
October (excluding inter-bank deposit)
Daily basis: 18,672,057,227 26,329,991,061 18,672,057,227 26,329,991,061
Required reserve (for DBO 3.50% & OBO 1.5% of Less: Inter unit/company elimination (with borrowings) (9,028,535,227) (7,107,491,061) (9,028,535,227) (7,107,491,061)
8,347,788,519 255,768,792 8,603,557,311 12,765,340,220 9,643,522,000 19,222,500,000 9,643,522,000 19,222,500,000
ATDTL) (For 2019: DBO 5% of ATDTL)
Actual reserve held with Bangladesh Bank* 11,653,908,501 14,366,004,280 Total 12,728,955,557 19,963,271,483 12,444,848,375 19,309,748,914
Surplus 3,050,351,190 1,600,664,060
4.2 Balance outside Bangladesh
Bi-weekly basis: In Deposit account (non-interest bearing) with
The bank maintained excess cash reserve of BDT 3,515.86 million in the last fortnight of 2020 (BDT 507.90 million in the same period AB Bank Limited, India 5,429,341 1,284,487 5,429,341 1,284,487
2019) calculated by summing up excess cash reserve maintained over required CRR on daily basis. Al-Rajhi Bank, KSA 3,470,999 860,581 3,470,999 860,581
Bank of Bhutan, Bhutan 161,459 4,986,090 161,459 4,986,090
3.b Statutory Liquidity Ratio (SLR):
Bank of China, China 3,004,949 1,054,971 3,004,949 1,054,971
Pursuant to section 33 of Bank Company Act, 1991 (amended upto 2018), DOS circular letter no. 26 dated 19 August 2019 issued by Bank of Toykyo Mitshubishi, Japan 2,474,669 2,389,151 2,474,669 2,389,151
Bangladesh Bank, EBL has been maintaining SLR @ 13% for DBO & OBO on weekly average total demand and time liabilities (ATDTL) Citibank NA, USA - 1,154,415,375 - 1,154,415,375
of a base month which is two months back of the reporting month (i.e. SLR of December 2020 is based on weekly ATDTL of October Commerz Bank AG, Germany 34,354,632 29,751,925 34,354,632 29,751,925
2020). Reserve maintained by the Bank as at 31 December is as follows: Habib American Bank, USA 18,486,436 36,979,770 18,486,436 36,979,770
HDFC Bank Limited, Hongkong 44,670,116 17,331,310 - -
DBO OBO Solo-2020 Solo-2019 ICICI Bank Limited, India 64,543,382 55,420,253 64,543,382 55,420,253
Required reserve (13% of ATDTL) 31,006,071,642 2,216,662,864 33,222,734,506 33,189,884,572 ICICI Bank Limited, Hongkong 97,152,050 317,222,032 35,789,543 167,643,501
Actual reserve held (Note 3.c) 55,818,596,219 35,669,027,661 JP Morgan Chase Bank NA, London 18,012,234 3,544,065 18,012,234 3,544,065
Surplus 22,595,861,713 2,479,143,089 JP Morgan Chase Bank NA, Sydney 1,538,908 1,218,748 1,538,908 1,218,748
JP Morgan Chase Bank, USA - 562,487,529 - 562,487,529
JP Morgan Chase Bank, Germany 42,066,560 254,520 42,066,560 254,520

226 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 227
 Financial Reports
Amount in BDT Amount in BDT
Consolidated Bank Consolidated Bank
Notes Notes
2020 2019 2020 2019 2020 2019 2020 2019
Mashreqbank, USA 21,091,674 779,732,371 21,091,674 779,732,371 6 Investments
Mashreqbank, UAE 775,084 1,113,429 775,084 1,113,429 Government 6.1 50,517,783,115 31,927,657,257 50,517,783,115 31,927,657,257
Nepal Bngladesh Bank Limited, Nepal 3,740,149 10,689,501 3,740,149 10,689,501 Others 6.2 15,498,577,951 10,138,813,514 13,431,621,587 7,869,354,690
NIB Bank Limied, Pakistan 67,295,868 170,866,269 67,295,868 170,866,269 66,016,361,066 42,066,470,771 63,949,404,702 39,797,011,947
Nordea Bank, Norway 431,823 771,861 431,823 771,861
Standard Chartered Bank, Srilanka 3,540,554 2,319,292 3,540,554 2,319,292 6.a Consolidated investments by group entities:
Standard Chartered Bank, India 46,505,854 88,487,172 46,505,854 88,487,172
Eastern Bank Limited (Parent) 63,949,404,702 39,797,011,947
Standard Chartered Bank, USA 172,269,373 930,676,591 172,269,373 930,676,591
EBL Securities Limited 1,855,796,095 2,034,543,238
Standard Chartered Bank, Singapore 1,851,198 2,752,250 1,851,198 2,752,250
EBL Investments Limited 113,114,533 169,449,579
Standard Chartered Bank, Germany 8,841,771 10,614,112 8,841,771 10,614,112
EBL Asset Management Limited 98,045,736 65,466,007
Wachovia Bank NA, USA - 216,365,960 - 216,365,960
66,016,361,066 42,066,470,771
Zuercher Kantonal Bank, Zurich, Switzerland 2,622,841 2,335,618 2,622,841 2,335,618
Less: Inter company elimination - -
664,331,925 4,405,925,232 558,299,302 4,239,015,392
Total 66,016,361,066 42,066,470,771
Placement by OBU (interest bearing) with:
EBL Finance (HK) Limited * - 5,408,130,000 - 5,408,130,000
6.1 Government (Investment in govt. securities)
Less: Inter company elimination (with borrowings) - (5,408,130,000) - -
Total 664,331,924 4,405,925,232 558,299,302 9,647,145,392 Treasury Bills 6.1.1 8,747,518,500 12,647,862,640 8,747,518,500 12,647,862,640
Treasury Bonds 6.1.2 41,767,135,115 19,275,430,017 41,767,135,115 19,275,430,017
*As per BB instruction letter (BRPD (M)/204/26/2020-7403 dated 14 September 2020 and FEID/703(1)/obishaa/2020-3293 dated Prize Bonds 3,129,500 4,364,600 3,129,500 4,364,600
12 October 2020, placement to EBL Finance (HK) Limited by Offshore Banking Operation of EBL is now presented as loan facility 50,517,783,115 31,927,657,257 50,517,783,115 31,927,657,257
(overdraft) with same limit and required general provision has been maintained against this as per BB provisioning guideline.
6.1.1 Treasury Bills
Details of Foreign currency amounts and exchange rates are presented in 'Annexure-B'.
Held for Trading (HFT) 8,747,518,500 8,120,908,402 8,747,518,500 8,120,908,402
4.a Balances of subsidiaries with Banks & NBFIs Held to Maturity (HTM) - 4,526,954,238 - 4,526,954,238
With Eastern Bank Limited (eliminated as intra group balance) 6.1.1.a 8,747,518,500 12,647,862,640 8,747,518,500 12,647,862,640
EBL Securities Limited 97,798,028 14,087,134 6.1.1.a Treasury Bills (Tenor wise holding)
EBL Investments Limited 198,073,393 19,279,767 Unencumbered
EBL Finance (HK) Limited 575,770,684 99,404,602 91- day treasury bills - 1,745,513,000 - 1,745,513,000
EBL Asset Management Limited 190,752,909 51,389,115 182- day treasury bills 499,917,500 249,411,181 499,917,500 249,411,181
1,062,395,014 184,160,618 364- day treasury bills 8,247,601,000 10,652,938,459 8,247,601,000 10,652,938,459
With other banks & NBFIs 8,747,518,500 12,647,862,640 8,747,518,500 12,647,862,640
Banks 390,139,804 820,432,409
NBFIs - - 6.1.2 Treasury Bonds
390,139,804 820,432,409
Held for Trading (HFT) 11,536,342,253 - 11,536,342,253 -
Total 1,452,534,818 1,004,593,027
Held to Maturity (HTM) 30,230,792,862 19,275,430,017 30,230,792,862 19,275,430,017
6.1.2.a 41,767,135,115 19,275,430,017 41,767,135,115 19,275,430,017
4.b Consolidated balance with Banks and FIs by group entities:
Eastern Bank Limited (Parent) 13,003,147,677 28,956,894,306 6.1.2.a Treasury Bonds (Tenor wise holding)
EBL Securities Limited 381,850,938 667,555,812
EBL Investments Limited 198,127,665 19,333,658 Unencumbered
EBL Finance (HK) Limited 681,803,306 266,314,442 2- year Treasury bonds 4,282,564,213 2,301,255,523 4,282,564,213 2,301,255,523
EBL Asset Management Limited 190,752,909 51,389,115 5- year Treasury bonds 4,413,008,905 1,842,679,359 4,413,008,905 1,842,679,359
14,455,682,495 29,961,487,333 10- year Treasury bonds 28,461,863,277 10,780,940,548 28,461,863,277 10,780,940,548
Less: Inter company elimination (1,062,395,014) (5,592,290,618) 15- year Treasury bonds 3,140,909,791 3,068,270,071 3,140,909,791 3,068,270,071
Total 13,393,287,481 24,369,196,715 20- year Treasury bonds 1,468,788,929 1,282,284,517 1,468,788,929 1,282,284,517
41,767,135,114 19,275,430,017 41,767,135,114 19,275,430,017
4.c Balance with banks and FIs (according to remaining maturity grouping)
Disclosure on REPO and Reverse Repo transactions is made in 'Annexure- D'.
Receivable
On demand 76,097,543 75,348,463 76,097,543 75,348,463 6.2 Others (Investment in securities other than govt)
In not more than one month 7,751,167,938 11,125,718,251 7,361,028,134 15,713,415,842 Corporate bond (non-convertible) 1,493,202,676 - 1,493,202,676 -
In more than one months but not more than three months 2,410,000,000 5,700,000,000 2,410,000,000 5,700,000,000 Subordinated bonds (issued by other banks) 6.2.1 8,310,000,000 3,700,000,000 8,310,000,000 3,700,000,000
In more than three months but not more than one year 3,156,022,000 7,468,130,000 3,156,022,000 7,468,130,000 Ordinary Shares & Mutual Funds (MFs)-Quoted
6.2.2 5,695,375,275 6,438,813,514 3,628,418,911 4,169,354,690
In more than one year but not more than five years - - - - and Unquoted
In more than five years - - - - 15,498,577,951 10,138,813,514 13,431,621,587 7,869,354,690
13,393,287,481 24,369,196,715 13,003,147,677 28,956,894,306
5 Money at call and short notice
Bank 60,000,000 594,300,000 60,000,000 594,300,000
60,000,000 594,300,000 60,000,000 594,300,000

228 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 229
 Financial Reports
Amount in BDT Amount in BDT
Consolidated Bank Consolidated Bank
Notes Notes
2020 2019 2020 2019 2020 2019 2020 2019
6.2.1 Subordinated bonds (issued by other banks) 6.a.2 Remaining maturity grouping of investments
United Commercial Bank Subordinated Bond 1,200,000,000 1,300,000,000 1,200,000,000 1,300,000,000 On demand 3,129,500 4,364,600 3,129,500 4,364,600
Jamuna Bank Subordinated Bond 320,000,000 400,000,000 320,000,000 400,000,000 In not more than one month 4,999,726,000 1,994,924,181 4,999,726,000 1,994,924,181
MTBL Subordinated Bond 1,240,000,000 300,000,000 1,240,000,000 300,000,000 In more than one month but not more than three months 5,367,150,169 745,412,250 5,342,150,169 745,412,250
SIBL 2nd Mudaraba Subordinated Bond 150,000,000 200,000,000 150,000,000 200,000,000 In more than three months but not more than one year 8,514,693,324 18,198,163,013 6,574,587,329 15,964,696,258
Standard Bank Subordinated Bond 400,000,000 500,000,000 400,000,000 500,000,000 In more than one year but not more than five years 18,265,027,314 10,604,735,545 18,213,176,944 10,568,743,475
Bank Asia Subordinated Bond 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000 In more than five years 28,866,634,758 10,518,871,182 28,816,634,758 10,518,871,183
DBBL 3rd Subordinated Bond 1,000,000,000 - 1,000,000,000 - 66,016,361,066 42,066,470,771 63,949,404,702 39,797,011,947
SEBL 4th Subordinated Bond 1,000,000,000 - 1,000,000,000 -
IBBL 2nd Subordinated Bond 1,000,000,000 - 1,000,000,000 - 7 Loans and advances
TBL 5th Subordinated Bond 1,000,000,000 - 1,000,000,000 -
Loans, cash credits, overdrafts etc. 7.1 212,083,018,369 218,070,540,410 214,171,172,833 216,620,580,285
8,310,000,000 3,700,000,000 8,310,000,000 3,700,000,000
Bills purchased and discounted 7.2 18,462,037,803 21,024,167,598 14,772,690,062 15,430,454,478
230,545,056,172 239,094,708,008 228,943,862,895 232,051,034,763
6.2.2 Ordinary Shares & MFs (Quoted and Unquoted) - at cost
Quoted shares & MFs 7.a Consolidated loans and advances by group entities:
Quoted shares (sector wise)
Eastern Bank Limited (Parent) 228,943,862,895 232,051,034,763
Banks 1,011,261,727 1,107,782,335 634,523,448 670,547,641
EBL Securities Limited 3,070,938,335 2,783,604,732
NBFIs 943,226,904 1,092,592,560 305,665,806 423,710,043
EBL Investments Limited 126,907,157 217,292,800
Insurance 28,142,966 32,950,169 9,159,814 19,183,063
EBL Finance (HK) Limited 3,689,347,741 5,593,713,120
Fuel & Power 960,794,858 843,525,423 693,583,079 692,433,785
EBL Asset Management Limited - 155,000,000
Chemicals & Pharmaceuticals 615,187,054 746,262,869 265,020,751 327,500,994
235,831,056,128 240,800,645,415
Cement & Ceramics 3,449,440 3,449,440 3,449,440 3,449,440
Less: Inter company elimination (5,285,999,956) (1,705,937,407)
Engineering 384,885,456 605,530,920 242,196,541 298,090,547
Total 230,545,056,172 239,094,708,008
Others 657,144,491 795,392,627 488,906,683 589,695,794
4,604,092,896 5,227,486,344 2,642,505,562 3,024,611,308
7.1 Loans, cash credits, overdrafts etc.
Mutual Funds:
EBL Sponsored MFs: Inside Bangladesh
EBL First Mutual Fund 13,816,532 19,999,990 13,816,532 19,999,990 Loans - general 176,093,659,327 193,309,197,364 176,093,659,327 193,154,197,364
EBL NRB Mutual Fund 134,993,062 252,654,649 133,311,883 250,973,470 Cash credit 1,070,455,565 729,202,922 1,070,455,565 729,202,922
First Bangladesh Fixed Income Fund 705,311,257 756,731,020 698,580,237 750,000,000 Overdraft 36,219,247,409 25,738,077,531 33,021,401,917 22,737,179,999
Other Mutual Funds 65,365,059 104,006,961 63,408,228 91,404,412 Less: Inter company elimination (with EBLSL borrowings) (1,300,343,932) (1,705,937,407) - -
919,485,910 1,133,392,619 909,116,880 1,112,377,871 212,083,018,369 218,070,540,410 210,185,516,809 216,620,580,285
Total Quoted shares & MFs 5,523,578,805 6,360,878,964 3,551,622,441 4,136,989,180 Outside Bangladesh
Unquoted shares & MFs Overdraft-EBL Finance (HK) Limited* 3,985,656,024 - 3,985,656,024 -
Shares 76,796,470 77,934,550 31,796,470 32,365,510 Less: Inter company elimination (with borrowing) (3,985,656,024) - -
Unit Fund 95,000,000 - 45,000,000 - 212,083,018,369 218,070,540,410 214,171,172,833 216,620,580,285
171,796,470 77,934,550 76,796,470 32,365,510
Total Ordinary Shares & MFs (Quoted and Unquoted) 5,695,375,275 6,438,813,514 3,628,418,911 4,169,354,690 *As per BB instruction letter (BRPD (M)/204/26/2020-7403 dated 14 September 2020 and FEID/703(1)/obishaa/2020-3293 dated
12 October 2020, placement to EBL Finance (HK) Limited by Offshore Banking Operation of EBL is now presented as loan facility
6.2.2.1 Market Value of Quoted Shares and MFs (as on 31 December) (overdraft) with same limit and required general provision has been maintained against this as per BB provisioning guideline.
Quoted Shares & MFs: 7.2 Bills purchased and discounted
Banks 832,657,992 865,614,651 533,459,821 542,190,809
Inside Bangladesh
NBFIs 849,956,882 796,942,714 305,722,381 345,067,190
Local bills /documents 14,644,372,768 15,391,174,559 14,644,372,768 15,391,174,559
Insurance 24,310,026 25,525,589 4,667,840 12,488,290
Foreign bills /documents 128,317,293 39,279,919 128,317,293 39,279,919
Fuel & Power 707,492,710 604,500,765 521,846,887 503,394,577
14,772,690,062 15,430,454,478 14,772,690,062 15,430,454,478
Chemicals & Pharmaceuticals 483,900,072 493,846,778 207,589,498 206,993,072
Outside Bangladesh
Cement & Ceramics 997,873 883,175 997,873 883,175
Bills financed & UPAS (by EBL Finance HK Ltd) 3,689,347,741 5,593,713,120 - -
Engineering 199,656,530 306,383,763 129,565,303 151,213,121
18,462,037,803 21,024,167,598 14,772,690,062 15,430,454,478
Others 393,157,340 490,171,814 275,246,426 370,538,239
3,492,129,424 3,583,869,248 1,979,096,028 2,132,768,472
7.2.1 Bills purchased and discounted (on the basis of residual maturity grouping)
Mutual Funds/Unit Fund 823,751,950 668,955,455 760,527,331 655,502,020
Total 4,315,881,374 4,252,824,703 2,739,623,359 2,788,270,492 On demand 208,452,452 362,490,699 208,452,452 362,490,699
Within one month 5,228,882,425 3,406,682,855 3,015,273,780 2,403,730,092
In more than one month but less than three months 7,420,320,455 8,395,389,826 6,682,450,907 6,161,820,177
* Lock in status of Shares & Mutual Funds Trading Started Lock in period Lock in expiry In more than three months but less than six months 4,360,678,663 7,631,310,210 3,622,809,115 5,600,792,347
EBL First Mutual Fund (Sponsor Unit) 8/19/2009 20 Years 8/18/2029 Above six months 1,243,703,808 1,228,294,008 1,243,703,808 901,621,162
EBL NRB Mutual Fund (Sponsor Unit) 5/23/2011 20 Years 5/22/2031 18,462,037,803 21,024,167,598 14,772,690,062 15,430,454,478
First Bangladesh Fixed Income Fund (Sponsor Unit) 3/19/2012 20 Years 3/18/2032
10% of all three EBL sponsored MFs are to be under lock-in status for 20 years (initially it was 10 years but extended subsequently)
from the date of prospectus issued.

230 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 231
 Financial Reports
Amount in BDT Amount in BDT
Consolidated Bank Consolidated Bank
Notes Notes
2020 2019 2020 2019 2020 2019 2020 2019
7.a.1 Residual maturity grouping of loans and advances(including bills purchased & discounted) 7.b.5 Geographic location-wise concentration of loans and advances (including bills purchased and discounted)
Receivable Inside Bangladesh
On demand 17,895,121,648 6,441,774,943 17,895,121,648 6,441,774,943 Dhaka Division 165,780,242,739 178,677,236,844 163,882,741,179 177,227,276,719
In not more than one month 8,610,292,831 18,264,837,458 8,440,249,425 18,006,334,650 Chattogram Division 50,343,078,450 43,959,798,691 50,343,078,450 43,959,798,691
In more than one month but not more than three months 33,241,704,040 38,834,261,238 30,283,551,827 38,476,442,638 Sylhet Division 1,607,253,725 1,981,450,622 1,607,253,725 1,981,450,622
In more than three months but not more than one year 83,874,684,646 89,155,165,781 85,401,686,988 82,727,813,945 Rajshahi Division 3,574,734,351 3,745,965,955 3,574,734,351 3,745,965,955
In more than one year but not more than five years 70,885,064,817 73,700,748,782 70,885,064,817 73,700,748,782 Khulna Division 3,938,540,896 3,655,621,238 3,938,540,896 3,655,621,238
In more than five years 16,038,188,190 12,697,919,805 16,038,188,190 12,697,919,805 Rangpur Division 729,116,147 642,082,115 729,116,147 642,082,115
230,545,056,172 239,094,708,008 228,943,862,895 232,051,034,763 Barishal Division 390,493,592 349,441,780 390,493,592 349,441,780
Mymensingh Division 492,248,530 489,397,643 492,248,530 489,397,642
7.b Loans and advances on the basis of significant concentration
226,855,708,431 233,500,994,888 224,958,206,871 232,051,034,763
7.b.1 Loans and advances to Directors, executives and others Outside Bangladesh
Advance to Directors and their allied concerns - - - - Bills financed & UPAS (by EBL Finance HK Ltd) 3,689,347,741 5,593,713,120 3,985,656,024 -
Advances to Managing Director & CEO 12,674,505 13,604,345 12,674,505 13,604,345 230,545,056,172 239,094,708,008 228,943,862,895 232,051,034,763
Advances to other executives and staffs 1,491,607,277 1,514,272,499 1,491,607,277 1,514,272,499
Advances to customers (Group wise) 175,975,750,411 183,486,092,158 174,374,557,134 176,442,418,914 7.b.6 Geographic location and business segment-wise
Industrial loans and advances 53,065,023,980 54,080,739,005 53,065,023,980 54,080,739,005 Total Bank (Solo)
concentration of loans and advances
230,545,056,172 239,094,708,008 228,943,862,895 232,051,034,763 (including bills purchased and discounted) Retail and SME
Corporate &
(S) banking 2020 2019
7.b.2 Large loan details (Loans extended to any customer exceeding 10% of the Bank's total capital) Commercial
(including staff)
* Total Loans and Advances (BDT million) 80,388 104,833 Division
Number of Customers 17 24 Dhaka Division 125,335,398,365 42,532,998,839 167,868,397,203 177,227,276,719
Classified amount thereon - - Chattogram Division 37,485,527,045 12,857,551,406 50,343,078,450 43,959,798,691
* This amount represents total loans and advances (comprising funded and non funded facilities) to each customer exceeding BDT Sylhet Division 64,488,950 1,542,764,775 1,607,253,725 1,981,450,622
3,314.42 million which is equivalent to 10% of total capital of the bank as at 31 December 2020. Rajshahi Division 2,016,581,387 1,558,152,964 3,574,734,351 3,745,965,955
Khulna Division 1,300,641,719 2,637,899,177 3,938,540,896 3,655,621,238
7.b.3 Industry-wise concentration of loans and advances (including bills purchased and discounted)
Rangpur Division - 729,116,147 729,116,147 642,082,115
Agri and micro credit through NGO 14,219,286,426 15,353,432,976 14,219,286,426 15,353,432,976 Barishal Division - 390,493,592 390,493,592 349,441,780
Commercial and trading 30,669,916,120 26,298,765,184 30,669,916,120 26,298,765,184 Mymensingh Division - 492,248,530 492,248,530 489,397,643
Construction 8,789,387,758 9,270,126,520 8,789,387,758 9,270,126,520 166,202,637,465 62,741,225,430 228,943,862,895 232,051,034,763
Cement and ceramic industries 3,666,702,809 5,839,332,314 3,666,702,809 5,839,332,314
Amount in BDT
Chemical and fertilizer 3,824,905,455 2,910,679,026 3,824,905,455 2,910,679,026
Crops, fisheries and livestocks 1,224,443,160 2,301,710,579 1,224,443,160 2,301,710,579 Consolidated Bank
Electronics and electrical goods 3,756,582,128 6,669,263,200 3,756,582,128 6,669,263,200 2020 2019 2020 2019
Food and allied industries 10,873,444,694 11,277,309,990 10,873,444,694 11,277,309,990 7.b.7 Business segment - wise concentration of loans and advances
Consumer finance 32,827,061,558 31,099,694,970 29,629,216,066 28,098,797,438 (including bills purchased and discounted)
Metal and steel products 17,487,016,658 14,348,256,710 17,487,016,658 14,348,256,710 Corporate banking 143,744,965,586 161,575,297,205 145,341,617,801 157,532,521,492
Pharmaceutical industries 2,703,502,985 3,075,911,833 2,703,502,985 3,075,911,833 Offshore banking 25,059,741,722 23,378,869,682 25,059,741,722 23,378,869,682
Power and fuel 8,058,035,313 13,110,120,254 8,058,035,313 13,110,120,254 Retail and SME (S) banking 60,236,067,082 52,612,664,277 57,038,221,590 49,611,766,745
Rubber and plastic industries 2,799,428,682 3,695,121,107 2,799,428,682 3,695,121,107 Executives & Staffs 1,504,281,782 1,527,876,844 1,504,281,782 1,527,876,844
Readymade garments industry 36,830,131,190 36,834,790,813 33,140,783,449 31,241,077,693 230,545,056,172 239,094,708,008 228,943,862,895 232,051,034,763
Ship building & breaking industry 6,710,289,548 6,004,109,013 6,710,289,548 6,004,109,013
Sugar and edible oil refinery 4,873,212,500 5,359,780,848 4,873,212,500 5,359,780,848 7.b.8 Loans and advances (as categorised in CL Statement)
Transport and e-communication 5,559,431,577 7,218,428,270 5,559,431,577 7,218,428,270 Inside Bangladesh
Textile mills 11,712,847,293 11,556,853,698 11,712,847,293 11,556,853,698 Continuous loan (CL-2)
Other manufacturing or extractive industries 12,777,907,895 13,323,331,199 12,777,907,895 13,323,331,199 Consumer Financing (CF) 8,891,034,461 8,845,328,188 5,693,188,969 5,844,430,658
Others 11,181,522,423 13,547,689,503 16,467,522,379 15,098,626,910 Small & Medium Enterprise (SME) 6,615,085,022 3,055,795,697 6,615,085,022 3,055,795,697
230,545,056,172 239,094,708,008 228,943,862,895 232,051,034,763 Loans to BHs/MBs/SDs against Shares - - 1,300,343,932 1,550,937,407
7.b.4 Sector - wise concentration of loans and advances (including bills purchased and discounted) Other than SMEF, CF, BHs/MBs/SDs 20,481,631,201 12,994,086,480 20,481,631,201 12,994,086,480
35,987,750,684 24,895,210,365 34,090,249,124 23,445,250,242
Government sector - - - - Demand loan (CL-3)
Public sector 542,640,062 599,796,887 542,640,062 599,796,887 Small & Medium Enterprise (SME) 7,512,027,973 7,963,462,196 7,512,027,973 7,963,462,196
Private sector 230,002,416,110 238,494,911,121 228,401,222,833 231,451,237,876 Other than SMEF, CF, BHs/MBs/SDs 81,775,295,761 101,860,604,429 81,775,295,761 101,860,604,429
230,545,056,172 239,094,708,008 228,943,862,895 232,051,034,763 89,287,323,734 109,824,066,625 89,287,323,734 109,824,066,625

232 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 233
 Financial Reports
Amount in BDT Bank (Solo)
Consolidated Bank
Notes 7.b.11.b Industry- wise concentration of Classified Loans & Advances 2020 2019
2020 2019 2020 2019
Term loan (CL-4) Taka % Taka %
Consumer Financing (including staff, other than HF) 11,927,855,478 11,310,358,576 11,927,855,478 11,310,358,576 Commercial and trading 2,682,842,715 43.09% 2,642,435,201 34.00%
Housing Financing (HF) 3,679,858,420 2,245,618,170 3,679,858,420 2,245,618,170 Crops, fisheries & livestocks 4,660,572 0.07% 6,354,553 0.08%
Small & Medium Enterprise 17,979,028,124 16,698,875,636 17,979,028,124 16,698,875,636 Electronics & electrical goods 20,761,549 0.33% 20,761,549 0.27%
Other than SMEF, CF, BHs/MBs/SDs 65,553,848,436 64,575,409,426 65,553,848,436 64,575,409,426 Individuals 417,516,122 6.71% 545,653,755 7.02%
99,140,590,458 94,830,261,808 99,140,590,458 94,830,261,808 Metal & steel products 153,225,168 2.46% 153,225,169 1.97%
Short term agri credit and microcredit (CL-5) Readymade garments industry 327,923,773 5.27% 342,260,969 4.40%
Short term agri credit 2,440,043,554 3,951,456,089 2,440,043,554 3,951,456,089 Ship breaking industry 1,856,012,830 29.81% 2,063,668,755 26.55%
2,440,043,554 3,951,456,089 2,440,043,554 3,951,456,089 Sugar, edible oil refinery & food processing 101,758,719 1.63% 93,962,749 1.21%
Outside Bangladesh Transport & ecommunication 95,934,563 1.54% 102,108,913 1.31%
Loans, cash credits, overdrafts etc. 3,689,347,741 5,593,713,120 3,985,656,024 - Textile mills 1,341,963 0.02% 1,244,783,395 16.02%
Total 230,545,056,172 239,094,708,008 228,943,862,895 232,051,034,763 Others 564,404,884 9.06% 556,259,867 7.16%
6,226,382,857 100.00% 7,771,474,876 100.00%
7.b.9 Security/ Collateral - wise concentration of loans and advances
(including bills purchased and discounted) 7.b.12 Particulars of loans and advances
Collateral of movable/immovable assets 99,835,957,892 94,326,110,351 99,835,957,892 94,326,110,351 i) Debts considered good in respect of which the bank is
214,447,959,263 223,624,730,783 212,846,765,986 216,581,057,538
Local banks and financial institutions guarantee 7,759,307,284 13,128,573,819 4,069,959,543 7,534,860,698 fully secured
Government guarantee 542,640,062 599,796,887 542,640,062 599,796,887 ii) Debts considered good for which the bank holds no
5,692,830,164 5,844,071,853 5,692,830,164 5,844,071,853
Export documents 18,033,434,069 15,463,626,522 18,033,434,069 15,463,626,522 other security than the debtor's personal security
Fixed deposit receipts (FDR)-own bank 17,612,033,160 16,895,511,010 17,612,033,160 16,895,511,010 iii) Debts considered good and secured by the personal
Personal guarantee 15,936,320,549 15,858,438,640 15,936,320,549 15,858,438,640 security of one or more parties in addition to the personal 10,404,266,743 9,625,905,372 10,404,266,743 9,625,905,372
Other securities (Hypothecation charges) 70,825,363,156 82,822,650,780 72,913,517,620 81,372,690,655 security of the debtors.
230,545,056,172 239,094,708,008 228,943,862,895 232,051,034,763 iv) Debts adversely classified; for which no provision is
- - - -
created.
7.b.10 Classification status of loans and advances
230,545,056,171 239,094,708,008 228,943,862,894 232,051,034,763
Unclassified v) Debts due by directors or officers of the bank or any of
Standard (Excluding Staff Loan) 220,586,642,131 226,825,242,029 219,480,207,242 220,039,803,668 1,504,281,781 1,527,894,631 1,504,281,781 1,527,894,631
them either jointly or severally with any other persons.
Special Mention Accounts (SMA) 1,732,991,015 2,711,879,375 1,732,991,015 2,711,879,375 vi) Debts due by companies and firms in which the
222,319,633,146 229,537,121,404 221,213,198,257 222,751,683,043
directors of the bank have interests as directors, partners
Classified - - - -
or managing agent or in case of private companies as
Sub-standard 1,032,797,745 1,122,379,049 1,032,797,745 1,122,379,049
Doubtful 287,325,617 371,518,878 287,325,617 371,518,878 members.
Bad/Loss 5,401,017,883 6,535,811,834 4,906,259,496 6,277,576,949 vii) Maximum total amount of advances, including
7.b.11 6,721,141,245 8,029,709,761 6,226,382,857 7,771,474,876 temporary advances made at any time during the period
1,504,281,781 1,527,894,631 1,504,281,781 1,527,894,631
Executives & Staffs (HR Loan) 1,504,281,781 1,527,876,844 1,504,281,781 1,527,876,844 to directors or managers or officers of the bank or any of
Total 230,545,056,172 239,094,708,008 228,943,862,895 232,051,034,763 them either severally or jointly with any other persons.
Percentage of Classified Loans & Advances 2.92% 3.36% 2.72% 3.35% viii) Maximum total amount of advances, including
temporary advances, granted during the period to the
7.b.10.a The amount reported above under SMA category includes certain loan accounts with an aggregate outstanding of BDT 1,225.70 million
companies or firms in which the directors of the bank - - - -
as at 31-12-2020 (BDT 1,227.40 million as at 31-12-2019) which has not been reported as classified as at year-end on the basis of stay
have interests as directors, partners or managing agents
order from the Honorable High Court Division of the Supreme Court of Bangladesh. As at year-end 2020, an aggregate amount of BDT
or, in case of private companies as members .
534.60 million (BDT 539.30 million as at 31-12-2019) has been kept as specific provision treating all those customers as bad/loss.
ix) Due from other banking companies - - - -
7.b.11 Movement of classified loans and advances x) Information in respect of classified loans and advances - - - -
Opening balance 8,029,709,761 5,003,101,115 7,771,474,876 4,926,227,238 a) Classified loans for which interest/profit not credited
6,721,141,245 8,029,709,761 6,226,382,857 7,771,474,876
Addition during the year 265,997,505 4,320,296,952 29,474,002 4,138,935,944 to income
Reduction during the year (1,574,566,021) (1,293,688,307) (1,574,566,021) (1,293,688,307) (i) (Decrease)/Increase of provision (specific) 1,654,004,498 1,890,482,828 1,490,560,665 1,890,482,828
Closing balance 7.b.11.a 6,721,141,245 8,029,709,761 6,226,382,857 7,771,474,876 (ii) Amount of loans written off - - - -
(iii) Amount recovered from loans written off 725,759,332 635,666,487 725,759,332 635,666,487
7.b.11.a Business segment - wise Classified Loans & Advances b) Amount of provision kept against loans classified as
2020 2019 5,509,438,624 5,279,378,514 5,489,323,606 5,279,378,514
(Bank only) bad/loss
c) Amount of interest creditable to the interest suspense
Taka % Taka % 2,425,163,343 1,823,520,136 2,233,375,188 1,653,910,317
account
Corporate Banking 4,447,550,406 71.43% 5,868,224,716 75.51%
xi) Cumulative amount of written off loans:
Retail and SME (S) banking 1,778,832,451 28.57% 1,903,250,160 24.49%
Opening Balance 13,465,399,498 17,098,953,413 13,465,399,498 13,465,399,498
6,226,382,857 100.00% 7,771,474,876 100.00%
Amount written off during the year:
Principal amount - - - -
Interest suspense - - - -
Balance of written off loans and advances 13,465,399,498 17,098,953,413 13,465,399,498 13,465,399,498
There was no loan written off during the year 2019 and 2020.

234 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 235
 Financial Reports
Amount in BDT Amount in BDT
Consolidated Bank Consolidated Bank
Notes Notes
2020 2019 2020 2019 2020 2019 2020 2019
7.b.13 Cumulative amount of recovery from written 9 Other assets
3,932,167,877 3,206,408,545 3,932,167,877 3,206,408,545
off loans (including BCCI loans) Income generating:
7.b.14 Cumulative amount of written off loans for Investment in subsidiary-EBL Securities Limited 9.1 - - 1,967,400,000 1,967,400,000
15,618,345,039 15,618,345,039 15,618,345,040 15,618,345,040 Investment in subsidiary-EBL Investments Limited 9.2 - - 299,999,900 299,999,900
which law suits have been filed (note 7.b.14.1)
Investment in subsidiary-EBL Finance (HK) Limited 9.3 - - 14,779,352 14,779,352
7.b.14.1 Cumulative amount of written off loans
7.b.14.1.a Investment in subsidiary-EBL Asset
(including legal and other charges) 9.4 - - 249,999,900 249,999,900
Management Limited
Opening balance 15,618,345,039 15,618,345,039 15,618,345,040 15,618,345,040 Fair value of TREC to EBLSL and Shares of DSE 9.5.a 595,337,112 595,337,112 - -
During the year - - - - Fair value of TREC to EBLSL and Shares of CSE 9.5.b 245,379,755 245,379,755 - -
Closing balance 15,618,345,039 15,618,345,039 15,618,345,040 15,618,345,040
Non- Income generating:
7.b.14.1.a Cumulative number of written off loan accounts against which lawsuits have been filed Receivable from subsidiaries 9.6 - - 3,205,113 3,527,436
Opening balance 8,173 8,173 Stock of stationeries 12,191,604 15,097,285 12,191,604 15,097,285
During the year - - Stamps on hand 4,791,068 5,600,093 4,781,918 5,582,843
Closing balance 8,173 8,173 Advance to staff for expenses 9.7 40,000 301,986 40,000 252,950
Security deposits with govt./non govt. agencies 15,992,392 11,637,804 7,524,224 7,359,364
8 Fixed assets including land, building, furniture and fixtures Interest, fees and dividend receivables 9.8 1,343,478,795 964,781,342 1,364,453,355 1,046,980,398
At Cost (revalued amount in case of lands) Sundry receivables 9.9 1,254,018,166 755,995,261 1,238,042,671 754,902,561
Freehold lands and land development 3,986,656,786 3,986,656,786 3,986,656,786 3,986,656,786 Advance rent 44,416,462 216,938,429 44,179,987 216,800,826
Buildings and floor spaces 1,407,955,522 1,407,955,522 1,407,955,522 1,407,955,522 Prepayments and advance to vendors 207,308,251 161,824,574 203,703,188 158,371,686
Capital work in progress * 120,262,652 75,714,267 120,262,652 75,714,267 Deferred tax assets (net of liabilities) 9.10 2,150,731,502 1,875,161,824 2,053,605,499 1,875,161,824
General machineries and equipments 671,774,138 656,521,761 660,606,312 644,555,994 Other assets of subsidiaries 9.11 42,831,627 21,833,460 - -
Computer and network equipments 923,182,539 739,037,097 908,872,414 724,895,657 5,916,516,734 4,869,888,926 7,463,906,712 6,616,216,325
Digital banking equipments 254,153,920 251,415,620 254,153,920 251,415,620
Electromechanical equipments* 343,652,516 342,555,675 343,652,516 342,555,675 9.a Consolidated other assets of group entities:
Furniture and fixtures 713,429,157 708,980,619 679,633,843 676,713,189 Eastern Bank Limited (Parent) 7,463,906,712 6,616,216,326
Vehicles 205,977,959 205,977,959 180,931,604 180,931,604 EBL Securities Limited 1,009,549,816 885,449,555
Right of use assets (Lease assets) 8.01 1,654,846,368 987,186,815 1,591,754,131 950,537,957 EBL Investments Limited 18,717,830 4,553,103
Softwares 666,394,719 570,809,172 662,449,964 566,873,549 EBL Finance (HK) Limited 2,017,786 1,967,116
Total cost 10,948,286,276 9,932,811,294 10,796,929,664 9,808,805,820 EBL Asset Management Limited 3,447,697 11,267,587
Accumulated depreciation and amortization (3,175,639,306) (2,525,678,991) (3,086,031,647) (2,459,754,590) 8,497,639,841 7,519,453,687
Written down value at 31 december 7,772,646,970 7,407,132,303 7,710,898,017 7,349,051,230 Less: Inter company elimination (2,581,123,106) (2,649,564,761)
Capital work in progress * Total 5,916,516,734 4,869,888,926

Initial payment made for automation or upgradation of bank's different software is recognised as capital work in progress as per IAS 9.1 Investment in subsidiary-EBL Securities Limited
16, until the project/development work is completed and/or the asset is ready for intended use. These assets are stated at cost and EBL acquired its securities brokerage subsidiary in two phases (2010 and 2011) at a total cost of BDT 479.90 million and injected
depreciation of these assets will be charged from the date of intended use. afterwards BDT 1,487.50 million as fresh capital.
Details of the fixed assets are presented in 'Annexure-A'. 9.2 Investment in subsidiary-EBL Investments Limited
8.01 Right of use assets (Lease assets) This fully owned subsidiary of EBL was incorporated on 30 December 2009 with an initial authorized capital of BDT 1,000 million and
paid up capital of BDT 300 million. It was awarded merchant banking license by BSEC on January 2013 and started its full fledged
Right of Use (RoU) assets comprise of lease liabilities which is the present value of lease payments against rented premises less
merchant banking operations since then.
incentive, plus initial direct payment and dismantling cost etc. Any contractual obligation for use of any rented/leased premises or
assets for a period exceeding twelve months and/or exceeding the threshold for low value asset, and substantially risks and benefits 9.3 Investment in subsidiary-EBL Finance (HK) Limited
related to ownership of those rented premises/assets transfer to the bank, are recognised as RoU assets as per IFRS 16 'Leases'. EBL Finance (HK) Limited, the fully owned foreign subsidiary of EBL, was incorporated on 28 November 2011 with an initial
authorized capital of HKD 1.41 million (equivalent to BDT 14.78 million). Afterwards, in 2019 HKD 10.00 million was transferred to
8.a Consolidated fixed assets of group entities:
capital account from retained earnings.This subsidiary commenced its full fledged operations in Hongkong from early 2013.
Eastern Bank Limited (Parent) 7,710,898,017 7,349,051,230
9.4 Investment in subsidiary-EBL Asset Management Limited
EBL Securities Limited 41,279,284 42,605,053
EBL Investments Limited 8,659,179 6,980,196 Another fully owned subsidiary of EBL was incorporated on 9 January 2011 with an initial authorized capital of BDT 250 million. It
EBL Finance (HK) Limited 7,988,725 3,518,955 has fully subscribed paid up capital of BDT 250 million and has been registered under BSEC on 25 May 2017. It started full fledged
EBL Asset Management Limited 3,821,765 4,976,869 operations on asset management, capital market, equity investment etc since then.
7,772,646,970 7,407,132,303 9.5 Fair value measurement of TREC and Shares of both DSE and CSE (held by EBLSL)
Less: Inter company elimination - -
Total 7,772,646,970 7,407,132,303 As per Exchange Demutualization Act 2013, EBLSL was awarded Trading Right Entitlement Certificate (TREC) as well as ordinary
shares of both the bourses i.e. DSE and CSE in exchange of membership licenses under Demutualization Scheme ('the Scheme').
Subsequently, under a purchase agreement between demutualized DSE and strategic partner China Consortium, EBLSL sold out
25% of its holding to China Consortium at a negotiated price of BDT 21 per share (Face value: BDT 10 each). As of 31-12-2020, Share
composition of DSE and CSE held by EBLSL was as follows:

236 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 237
 Financial Reports
Particulars No of Shares held Face Value (BDT) Amount in BDT
Dhaka Stock Exchange Limited 5,411,329 10.00 Consolidated Bank
Notes
Chittagong Stock Exchange Limited 4,287,330 10.00 2020 2019 2020 2019
Total 9,698,659 10.00 9.9.a Receivable (net off) from Bangladesh Bank for SP, WEDB, DIB, DPB etc.
In 2018, EBLSL carried out a valuation by ACNABIN, chartered accountants, to determine the fair value of TREC and Shares of Receivable from Bangladesh Bank for SP, WEDB, DIB, DPB etc.
both the bourses i.e. DSE and CSE. The value of TREC was determined applying varying weights to the results of three valuation For sale of Sanchaypatra 487,825,636 200,369,273 487,825,636 200,369,273
approaches i.e. Cost approach, Market approach and Income approach. Fair value of DSE shares was determined on the basis of For sale of WEDB, DIB, DPB etc. 12,175,008 10,905,686 12,175,008 10,905,686
recent transaction price made between DSE and China Consortium but face value of CSE shares was taken as fair value as there was 500,000,644 211,274,959 500,000,644 211,274,959
no offer price from any third party. However, EBL management expects the fair value of TREC and Shares of DSE and CSE altogether Payable to Bangladesh Bank
For encashment of Sanchaypatra 11,350,000 19,600,000 11,350,000 19,600,000
is to be similar to net realizable value in line with present growth pattern of business and outlook of EBLSL. The valuation result of
For encashment of WEDB, DIB & DPB - 6,287,450 - 6,287,450
TREC and Shares held by EBLSL under the above methodologies are as follows:
11,350,000 25,887,450 11,350,000 25,887,450
Consolidated Bank Closing balance 488,650,644 185,387,509 488,650,644 185,387,509
2020 2019 2020 2019
9.5.a Fair value of DSE-TREC and Shares (held by EBLSL) 9.10 Deferred tax asset (net of liability)
Value of TREC (Trading Right Entitlement Certificate) held Deferred tax asset 9.10.b 2,281,694,923 1,979,766,943 2,184,488,290 1,979,766,943
481,427,540 481,427,540
by EBLSL Deferred tax liability 9.10.c 130,963,421 104,605,118 130,882,791 104,605,118
Value of Shares (5,411,329 Ns @BDT 21.05, face value is 2,150,731,502 1,875,161,824 2,053,605,499 1,875,161,824
113,909,572 113,909,572
BDT 10 each)
595,337,112 595,337,112 9.a Consolidated deferred tax asset (net of liability)
9.5.b Fair value of CSE-TREC and Shares (held by EBLSL) Eastern Bank Limited (Parent) 2,053,605,499 1,875,161,824
Value of TREC (Trading Right Entitlement EBL Securities Limited 82,687,487 -
201,500,000 201,500,000 EBL Investments Limited 13,946,737 -
Certificate) held by EBLSL
EBL Asset Management Limited 491,779 -
Value of Shares (4,287,330 Ns @BDT 10.23, face
43,879,755 43,879,755 Total 2,150,731,502 1,875,161,824
value is BDT 10 each)
245,379,755 245,379,755 9.10.b Deferred tax asset (Bank only)
9.6 Receivable from Subsidiaries
On specific loan provision kept against B/L loans 9.10.b.1 2,058,496,352 1,979,766,943
Receivable from:
On actuarial re-measurement gain/(Loss) on
EBL Securities Limited (in trading account) 3,205,113 3,527,436 18 125,991,938 -
3,205,113 3,527,436 defined benefit plans
9.7 Advance to staff for expenses 2,184,488,290 1,979,766,943
Due for 9.10.b.1 On specific loan provision kept against B/L loans
Less than three months 40,000 301,986 40,000 252,950
Cumulative provision made against Bad/Loss loans 5,489,323,606 5,279,378,514
More than three months but less than six months - - - -
Adjustment of corresponding provision on write off * - -
More than six months but less than nine months - - - -
Deductible temporary difference 5,489,323,606 5,279,378,514
More than nine months but less than twelve months - - - -
Tax rate 37.50% 37.50%
More than twelve months - - - -
Deferred tax asset 2,058,496,352 1,979,766,943
40,000 301,986 40,000 252,950
Opening deferred tax asset 1,979,766,943 1,285,844,977
9.8 Interest, fees and dividend receivables Deferred tax (income) (78,729,409) (693,921,966)
Interest receivable on placement/ margin loans* 138,285,615 426,527,692 138,285,615 416,289,692 * There was no loan written off during the year 2019 and 2020.
Income receivable on government securities 874,257,540 464,882,605 874,257,540 464,882,605
Interest receivable on non-government securities 104,422,515 83,823,756 104,422,515 83,823,756 9.10.c Deferred tax liability (Bank only)
Interest receivable under stimulus package (subsidized by BB) 80,664,650 - 80,664,650 - On temporary difference in WDV of fixed assets between tax base and carrying value:
Fees, commission and charges receivable 105,524,545 41,937,768 102,728,406 38,973,386 Carrying amount of fixed assets 2,513,258,349 2,485,478,255
Dividend receivable 81,597,821 82,754,891 64,094,628 65,059,456 Tax base 2,164,237,573 2,206,531,273
1,384,752,687 1,099,926,713 1,364,453,355 1,069,028,896 Taxable temporary difference 349,020,775 278,946,982
Less: Inter unit/company elimination (41,273,892) (135,145,371) - (22,048,498) Tax rate 37.50% 37.50%
1,343,478,795 964,781,342 1,364,453,355 1,046,980,398 Deferred tax liability 130,882,791 104,605,118
* Margin loans by subsidiaries. Opening deferred tax liability 104,605,118 75,145,113
Deferred tax expense 26,277,672 29,460,005
9.9 Sundry receivables
Excise duty receivable from customers 74,782,092 86,516,007 74,782,092 86,516,007 Deferred tax assets/(liabilities) have been recognised and measured as per IAS-12: Income Taxes and BRPD circular # 11 dated 12
Protested Bills to be recovered 105,824,995 105,824,995 105,824,995 105,824,995 December 2011.
AIT recoverable from customers 76,500,000 76,500,000 76,500,000 76,500,000 No deferred tax liability has been recognised on land revaluation reserve due to the fact that taxes paid at the time of land registration
Cards and ATM acquiring/transactional account 357,288,543 143,409,776 357,288,543 143,409,776 are final discharge of related tax liability. Deferred tax asset on provision against diminution of value of quoted securities has not
Receivable (net off) from Bangladesh Bank for been recognised as adjustment of loss (for set off against gain under the same head) u/s 37 and u/s 40 of ITO 1984 is uncertain due
488,650,644 185,387,509 488,650,644 185,387,509
SP, WEDB, DIB, DPB etc. to market volatility.
Other receivables (Margin, remittance, Bidding
150,971,893 158,356,974 134,996,398 157,264,274 There is no other material temporary timing difference in classified assets/liabilities for which deferred tax asset/liability is required
Money, IPO Subscription etc)
to be accounted for in the year.
1,254,018,166 755,995,261 1,238,042,671 754,902,561

238 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 239
 Financial Reports
Amount in BDT Amount in BDT
Consolidated Bank Consolidated Bank
Notes Notes
2020 2019 2020 2019 2020 2019 2020 2019
9.11 Other assets of subsidiaries 11 Borrowing from banks, financial institutions and agents
Trade receivable from DSE & CSE 34,446,039 21,830,780 Inside Bangladesh (including subordinated bond) 11.1 28,855,081,536 25,997,093,814 26,860,390,048 23,969,646,034
Other receivables (trade account etc.) 9,603,143 763,980 Outside Bangladesh 11.2 17,425,999,081 26,851,142,174 17,425,999,081 26,851,142,174
44,049,182 22,594,760 46,281,080,617 52,848,235,988 44,286,389,129 50,820,788,208
Less: Inter company elimination (with deposit account) (1,217,555) (761,300) 11.a Consolidated borrowings from Banks, FIs by group entities:
42,831,627 21,833,460
Eastern Bank Limited (Parent) 44,286,389,129 50,820,788,208
10 Non-banking assets EBL Securities Limited 3,433,140,420 3,733,385,187
EBL Finance (HK) Limited 3,985,656,024 5,408,109,743
The Bank was awarded absolute ownership on few mortgaged properties through the verdict of honorable court under section 33(7)
51,705,185,573 59,962,283,138
of the Artharin Adalat Act 2003. These were recorded as non banking assets (carrying value of which was BDT 105,576,495 as on
Less: Inter company elimination (5,424,104,956) (7,114,047,150)
reporting date) as per valuation report submitted by professional valuation firm and recording of transactions were certified by the
Total 46,281,080,617 52,848,235,988
then external auditors Rahman Rahman Huq. Value of the assets received in addition to the loan outstanding/written off loans was
kept as reserve against non banking assets. Following are the details: 11.1 Borrowing from - Inside Bangladesh
Non earning assets Demand Borrowing:
Banks 12,461,675,647 6,265,759,549 9,028,535,227 4,167,374,362
Entitlement
Name of Parties Asset details NBFIs - 185,000,000 - -
Date
12,461,675,647 6,450,759,549 9,028,535,227 4,167,374,362
M/S Safa Garments Ltd * 18 Decimal of Land,
18.01.2005 8,727,000 8,727,000 8,727,000 8,727,000 Less: Inter unit/company elimination (10,466,984,159) (5,873,311,769) (9,028,535,227) (4,167,374,362)
Tejgaon, Dhaka 1,994,691,488 577,447,780 - -
Arshim & co 12 Katha of Land,
27.03.2007 4,200,000 4,200,000 4,200,000 4,200,000 Term Borrowing:
Tejgaon, Dhaka
M/s Innovative 11.25 Decimal of Banks 4,240,059,324 8,348,226,444 254,403,300 2,940,116,701
07.06.2007 262,000 262,000 262,000 262,000 NBFIs - 1,450,000,000 - -
Computer Ltd. Land, Dhaka
North American "Land Area: 6.5 4,240,059,324 9,798,226,444 254,403,300 2,940,116,701
Less: Inter unit/company elimination (3,985,656,024) (8,348,226,444) - (2,940,116,701)
Computer Dynamics decimal. Mouza-
254,403,300 1,450,000,000 254,403,300 -
and ors. Uttar Sona Tang 22.07.2007 3,160,000 6,320,000 3,160,000 6,320,000
gar, Mohammadpur, Subordinated bond & other borrowings under schemes:
Dhaka." From Bangladesh Bank & others
M/s Computer Bazar 0.14 acres of Land, Investment Promotion & Financing Facility (IPFF) 302,388,801 347,981,400 302,388,801 347,981,400
23.06.2009 1,696,000 1,696,000 1,696,000 1,696,000 Export Development Fund (EDF) 15,437,149,850 13,638,909,605 15,437,149,850 13,638,909,605
Network Sabujbagh,Dhaka
Stec Fashions Ltd. 25 Deimal of land, Refinance scheme under BADP 258,890,800 388,336,199 258,890,800 388,336,199
26.01.2009 1,904,495 1,904,495 1,904,495 1,904,495 Refinance scheme under SMESPD 1,010,617,484 750,064,859 1,010,617,484 750,064,859
Mirpur, Dhaka
Royals Paper Store 106.50 Decimal of Second Crop Diversification Project 764,526,750 866,463,650 764,526,750 866,463,650
21.05.2009 7,727,000 7,727,000 7,727,000 7,727,000 SME Foundation Pre-finance 9,000,000 19,500,000 9,000,000 19,500,000
Land, Dhaka
Long Term Financing Facility (LTFF) 1,276,489,063 1,458,390,321 1,276,489,063 1,458,390,321
Sabbir Ahmed 6 Decimal of Land,
10.05.2007 600,000 600,000 600,000 600,000 Borrowing under Stimulus Fund - Wages & Salaries 1,546,924,000 - 1,546,924,000 -
Mirpur, Dhaka
Non-Convertible Subordinated Bond 11.1.a 6,000,000,000 6,500,000,000 6,000,000,000 6,500,000,000
M/s. Tri Angle Trading 0.33 Acres of Land,
29.04.2007 6,600,000 6,600,000 6,600,000 6,600,000 26,605,986,748 23,969,646,034 26,605,986,748 23,969,646,034
Associates Savar, Dhaka 28,855,081,536 25,997,093,814 26,860,390,048 23,969,646,034
M/S Unicorn 16.5 Decimal of
22.11.2007 15,000,000 15,000,000 15,000,000 15,000,000 11.1.a Non-Convertible Subordinated Bond
Bangladesh Ltd. Land, Dhaka
HM Yunus 1.84 Acres of Land, The Bank with due approval from Bangladesh Bank and BSEC issued 7-year unsecured and non-convertible, 1st Subordinated Bond
10.01.2008 55,700,000 55,700,000 55,700,000 55,700,000 of BDT 2,500 million in 2015 and 2nd Subordinated Bond of BDT 5,000 million in 2019 through private placement to enhance Tier-II
Gazipur
105,576,495 108,736,495 105,576,495 108,736,495 capital. These Bonds are redeemable at the end of 3rd, 4th, 5th, 6th and 7th year of maturity at 20% per year. Coupon rates of the both
instruments are variable with a floor and ceiling rate. These two instruments have been rated and awarded AA and AA2 by CRISL and
*M/S Safa Garments Ltd: After expiry of initial 7 years holding period in 2012 as allowed by Bank Company Act 1991 (amended upto CRAB respectively in the long term. Although these are recognized component of Tier -II capital, the outstanding amount of these Bonds
2018), the Bank was granted extension of 1 year (till 17.01.2013) by Bangladesh Bank (BB). After expiry of that extended period, the is shown as borrowing as per BB guidelines/instruction. Following is the list of subscribers to these Bonds on current outstanding basis:
Bank again applied to BB for extension but BB advised the Bank to take absolute possession and dispose the property as soon as EBL 1st Subordinated Bond:
possible. Subsequently, EBL published sale notice several times to dispose the property but no bidder participated yet. Agrani Bank Limited 80,000,000 120,000,000 80,000,000 120,000,000
For rest of the properties, EBL obtained time extension from BB after expiry of initial 7 years. Meanwhile, EBL published general sales Brac Bank Limited 40,000,000 60,000,000 40,000,000 60,000,000
Janata Bank Limited 100,000,000 150,000,000 100,000,000 150,000,000
notice to dispose those properties at earliest. Subsequently, a bidder participated for North American Computer Dynamics and Ors. and
Mercantile Bank Limited 100,000,000 150,000,000 100,000,000 150,000,000
paid BDT 4.50 million against sales value of BDT 5.00 million, and therefore, this NBA was disposed proportionately and rest part will be One Bank Limited 240,000,000 360,000,000 240,000,000 360,000,000
disposed after receiving the full payment. The Bank has maintained required amount of provision (Book value of NBA minus Reserve Rupali Bank Limited 240,000,000 360,000,000 240,000,000 360,000,000
against NBA) to avoid any further loss on impairment in future due to complexity in taking absolute possession and/or selling the same. Sonali Bank Limited 200,000,000 300,000,000 200,000,000 300,000,000
The carrying value of NBAs are reviewed at each reporting period to determine whether there is any indication of impairment. As 1,000,000,000 1,500,000,000 1,000,000,000 1,500,000,000
per last valuation report by interdependent valuer, market value of NBAs is BDT 667.22 million and forced sale value is BDT 533.08 EBL 2nd Subordinated Bond:
million. However, due to complexity in selling of these properties the bank avoided booking any upward revaluation effect in 2020. Sadharan Bima Corporation 50,000,000 50,000,000 50,000,000 50,000,000
Details of NBAs awarded to the Bank under section 33(7) & 33(5) of Artharin Adalat Act, 2003 as at 31 December 2020 are in 'Annexure- D1'. Pubali Bank Limited 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000
Janata Bank Limited 500,000,000 500,000,000 500,000,000 500,000,000

240 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 241
 Financial Reports
Amount in BDT Amount in BDT
Consolidated Bank Consolidated Bank
Notes Notes
2020 2019 2020 2019 2020 2019 2020 2019
National Life Insurance Co. Limited 500,000,000 500,000,000 500,000,000 500,000,000 12.1 Current deposits and other accounts
Sonali Bank Limited 500,000,000 500,000,000 500,000,000 500,000,000 Current deposits 17,705,775,055 14,870,014,217 18,281,545,739 14,969,419,164
Agrani Bank Limited 2,250,000,000 2,250,000,000 2,250,000,000 2,250,000,000 Margin on facilities (LC, LG, Acceptance etc.) 7,342,052,213 6,128,743,553 7,342,052,213 6,128,743,553
Dhaka Bank Limited 200,000,000 200,000,000 200,000,000 200,000,000 Interest accrued on deposits 2,650,477,668 3,838,260,662 2,650,477,668 3,838,260,662
5,000,000,000 5,000,000,000 5,000,000,000 5,000,000,000 27,698,304,935 24,837,018,432 28,274,075,619 24,936,423,379
6,000,000,000 6,500,000,000 6,000,000,000 6,500,000,000
11.2 Borrowing from - Outside Bangladesh 12.2 Bills payable
Non-interest bearing: Payment order issued 1,487,310,693 1,126,909,709 1,487,310,693 1,126,909,709
Citibank NA, USA 210,594,830 - 210,594,830 - Demand draft issued 4,920,976 4,920,976 4,920,976 4,920,976
JP Morgan AG, USA 121,359,906 - 121,359,906 - 1,492,231,668 1,131,830,685 1,492,231,668 1,131,830,685
Standard Chartered Bank, USA 665,831,473 - 665,831,473 -
Wachovia Bank NA, USA 14,670,310 - 14,670,310 - 12.3 Savings bank deposits
1,012,456,519 - 1,012,456,519 - Transactional deposit accounts 52,452,738,036 39,910,578,841 52,452,738,036 39,910,578,841
Interest bearing: Scheme deposit accounts 12.3.a 11,332,135,518 10,303,725,700 11,332,135,518 10,303,725,700
Abu Dhabi Commercial Bank, UAE - 4,242,215,372 - 4,242,215,372 63,784,873,554 50,214,304,541 63,784,873,554 50,214,304,541
Asian Development Bank (ADB) 897,893,999 1,298,470,588 897,893,999 1,298,470,588
Bank of Montreal, Canada - 498,704,311 - 498,704,311 12.3.a Scheme deposit accounts:
Commerz Bank, Frankfurt - 2,176,144,957 - 2,176,144,957 EBL confidence account 5,611,737,099 5,290,943,082 5,611,737,099 5,290,943,082
Deutsche Investitions-und EBL child future plan account 884,695,328 721,403,624 884,695,328 721,403,624
4,748,861,600 2,716,800,000 4,748,861,600 2,716,800,000
Entwicklungsgesellschaft MBH (DEG) EBL millionaire scheme account 3,085,513,939 3,092,099,933 3,085,513,939 3,092,099,933
DBS Bank, Singapore - 3,334,392,035 - 3,334,392,035 EBL millionaire scheme women account 281,440,191 91,188,959 281,440,191 91,188,959
HDFC Bank, Mumbai 848,011,000 1,642,815,000 848,011,000 1,642,815,000 EBL aspire account 48,666,535 28,624,862 48,666,535 28,624,862
ICICI Bank, India - 1,141,173,157 - 1,141,173,157 EBL kotipoti account 563,331,723 343,846,505 563,331,723 343,846,505
International Finance Corporation (IFC) - 136,164,301 - 136,164,301 EBL multiplier account 660,660,384 487,619,229 660,660,384 487,619,229
International Islamic Trade Finance Corporation (ITFC), KSA - 175,110,027 - 175,110,027 Retail equity builder account 196,090,319 247,999,506 196,090,319 247,999,506
JP Morgan Chase, Singapore 1,366,993,732 - 1,366,993,732 - 11,332,135,518 10,303,725,700 11,332,135,518 10,303,725,700
Korea Development Bank, Singapore 2,797,048,041 3,077,119,161 2,797,048,041 3,077,119,161
National Bank of Ras Al-Khaimah, KSA - 1,257,702,722 - 1,257,702,722 12.4 Fixed deposits
Opec Fund for International Development (OFID), Austria 2,120,027,500 2,122,500,000 2,120,027,500 2,122,500,000
Term deposit account 111,213,240,539 131,652,336,865 111,213,240,539 131,652,336,865
OEEB, Development Bank, Austria 1,696,022,000 - 1,696,022,000 -
RFCD account 4,576,074 5,287,808 4,576,074 5,287,808
PROPARCO, France 462,551,458 771,818,184 462,551,458 771,818,184
NFCD account 71,791,516 77,776,914 71,791,516 77,776,914
Standard Chartered Bank, Singapore 12,877,943 2,260,012,361 12,877,943 2,260,012,361
111,289,608,129 131,735,401,586 111,289,608,129 131,735,401,586
Wells Fargo, USA 1,463,255,289 - 1,463,255,289 -
16,413,542,562 26,851,142,174 16,413,542,562 26,851,142,174
12.b Deposit concentration
17,425,999,081 26,851,142,174 17,425,999,081 26,851,142,174
Deposit from banks 12.b.1 770,743,979 2,556,967,216 770,743,979 2,556,967,216
11.a.1 Remaining maturity grouping of Borrowings
Deposit from other than banks 240,524,635,885 237,423,000,268 241,587,030,899 237,607,160,886
Payable 241,295,379,865 239,979,967,484 242,357,774,879 240,164,128,102
On demand 1,994,691,488 705,527,736 - 128,079,956
In not more than one month 4,427,195,755 7,216,878,501 5,392,469,886 7,216,878,501 12.b.1 Deposit from banks
In more than one month but not more than three months 13,041,203,385 15,226,306,606 10,950,712,667 15,226,306,606
Bangladesh Development Bank Limited 130 803,475 130 803,475
In more than three months but not more than one year 10,459,762,873 18,593,409,209 14,207,182,739 17,143,409,209
Community Bank Bangladesh Limited 18,603,660 1,818,749,324 18,603,660 1,818,749,324
In more than one year but not more than five years 14,383,975,141 8,620,542,698 12,078,242,881 8,620,542,698
First Security Islami Bank Limited 12,738,812 1,636,393 12,738,812 1,636,393
In more than five years 1,974,251,975 2,485,571,239 1,657,780,956 2,485,571,239
Janata Bank Limited 39,152 39,977 39,152 39,977
46,281,080,617 52,848,235,988 44,286,389,129 50,820,788,208
Meghna Bank Limited 2,794,475 489,151 2,794,475 489,151
Midland Bank Limited 3,099,572 3,089,114 3,099,572 3,089,114
12 Deposits and other accounts
Modhumoti Bank Limited 102,014,400 6,035,183 102,014,400 6,035,183
Current deposits and other accounts etc. 12.1 27,698,304,935 24,837,018,432 28,274,075,619 24,936,423,379 National Bank Limited 156,555 156,576 156,555 156,576
Bills payable 12.2 1,492,231,668 1,131,830,685 1,492,231,668 1,131,830,685 NCC Bank Limited 526,501 525,286 526,501 525,286
Savings bank deposits 12.3 63,784,873,554 50,214,304,541 63,784,873,554 50,214,304,541 NRB Bank Limited 43,900,173 47,850,909 43,900,173 47,850,909
Fixed deposits 12.4 111,289,608,129 131,735,401,586 111,289,608,129 131,735,401,586 NRB Commercial Bank Limited 3,134,530 35,878,657 3,134,530 35,878,657
Special notice deposit (SND) account 37,030,361,579 32,061,412,240 37,516,985,909 32,146,167,911 One Bank Limited 555,942 553,070 555,942 553,070
241,295,379,865 239,979,967,484 242,357,774,879 240,164,128,102 Shimanto Bank Limited 495,494,499 638,221,028 495,494,499 638,221,028
As on the reporting date, the bank had no Bearer certificates of deposits. Southeast Bank Limited 24,486 25,430 24,486 25,430
12.a Group entity- wise consolidated deposits and other accounts: SBAC Bank Limited 87,660,960 2,913,512 87,660,960 2,913,512
Standard Bank Limited 134 131 134 131
Eastern Bank Limited (Parent) 242,357,774,879 240,164,128,102 770,743,979 2,556,967,216 770,743,979 2,556,967,216
Subsidiary Companies - -
242,357,774,879 240,164,128,102
Less: Inter company elimination (1,062,395,014) (184,160,618)
Total 241,295,379,865 239,979,967,484

242 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 243
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Amount in BDT Amount in BDT
Consolidated Bank Consolidated Bank
Notes Notes
2020 2019 2020 2019 2020 2019 2020 2019
12.c Deposits on the basis of significant concentration: 13.a Group entity- wise consolidated other liabilities:
12.c.1 Sector - wise concentration of Deposits and other accounts Eastern Bank Limited (Parent) 21,315,844,876 18,611,065,064
Government sector 4,553,626,030 3,851,753,266 4,553,626,030 3,851,753,266 EBL Securities Limited 859,721,360 632,090,858
Other public sector 9,707,323,557 12,369,280,029 9,707,323,557 12,369,280,029 EBL Investments Limited 145,991,004 94,899,817
Private sector 227,034,430,278 223,758,934,189 228,096,825,292 223,943,094,807 EBL Finance (HK) Limited 59,122,410 167,276,293
241,295,379,865 239,979,967,484 242,357,774,879 240,164,128,102 EBL Asset Management Limited 12,970,385 22,816,847
22,393,650,035 19,528,148,879
12.c.2 Business segment - wise concentration of Deposits and other accounts Less: Inter company elimination 89,161,046 (117,385,613)
Corporate banking 57,658,693,263 62,920,837,358 58,721,088,277 63,104,997,976 Total 22,482,811,081 19,410,763,266
Offshore banking 256,695,118 322,291,809 256,695,118 322,291,809
Retail and SME (S) banking 181,887,759,816 175,605,007,632 181,887,759,816 175,605,007,632 13.1 Privileged creditors (payable to Government)
Others- Bills Payables 1,492,231,668 1,131,830,685 1,492,231,668 1,131,830,685 Tax deducted at source (TDS) 248,934,579 183,609,341 248,934,579 183,609,341
241,295,379,865 239,979,967,484 242,357,774,879 240,164,128,102 VAT deducted at source (VDS) 71,275,953 57,274,421 71,275,953 57,274,421
Excise duty deducted from customer accounts 376,309,666 352,416,932 376,309,666 352,416,932
12.d Residual maturity grouping of Deposits 696,520,198 593,300,694 696,520,198 593,300,694
From banks
Payable: 13.2 Acquirer liabilities
On demand 124,494,573 153,709,792 124,494,573 153,709,792 These liabilities are temporary in nature arisen from prepaid, debit and credit card transactions. Transactions are settled next day
Within one month 54,950 1,606,439,641 54,950 1,606,439,641
with relevant parties and reconciled monthly. Major balance includes 'Acquirer Cash' which is a liability to relevant parties arisen
In more than one month but less than six months 1,434,087 207,304,581 1,434,087 207,304,581
due to withdrawal of cash by EBL cardholders from Q-Cash/VISA ATMs (not owned by EBL):
In more than six months but less than one year 1,347,612 7,119,114 1,347,612 7,119,114
In more than one year but within five years 643,412,757 582,362,226 643,412,757 582,362,226 Prepaid (Lifestyle, travel etc) card liability 947,612,510 662,750,113 947,612,510 662,750,113
In more than five years but within ten years - - - - Credit card liability 27,126,210 43,806,024 27,126,210 43,806,024
770,743,979 2,556,935,354 770,743,979 2,556,935,354 Debit card liability 176,886,989 123,870,181 176,886,989 123,870,181
From other than banks Acquirer cash and other liabilities 156,717,191 123,755,887 156,717,191 123,755,887
Payable: 1,308,342,901 954,182,205 1,308,342,901 954,182,205
On demand 12,081,569,137 13,089,445,074 12,081,569,137 13,089,445,074
Within one month 16,288,424,397 16,258,645,936 16,864,195,081 16,296,509,359 13.3 Current tax liability / (assets)
In more than one month but less than three months 37,593,353,104 40,868,984,433 37,669,209,897 40,869,315,922 Provision for tax
In more than three months but less than one year 60,547,792,989 65,442,376,083 60,958,560,526 65,443,241,638 Opening balance 3,924,795,548 2,689,851,171 3,729,199,174 2,448,046,465
In more than one year but within five years 112,431,458,610 100,010,667,716 112,431,458,610 100,012,417,242 Settlement/adjustments for previous years (2,972,339,079) (1,782,482,621) (2,959,316,843) (1,631,332,206)
In more than five years but within ten years 1,582,037,648 1,752,912,890 1,582,037,648 1,896,263,514 Provision for tax made during the year 13.3.1 2,709,205,926 3,017,426,997 2,640,680,434 2,912,484,915
240,524,635,885 237,423,032,130 241,587,030,899 237,607,192,748 3,661,662,394 3,924,795,548 3,410,562,765 3,729,199,174
Total 241,295,379,865 239,979,967,484 242,357,774,879 240,164,128,102 Balance of income tax paid
Unclaimed deposit aging 10 years or more 9,238,075 6,420,902 9,238,075 6,420,902 Opening balance 1,144,970,128 1,173,620,130 1,014,296,336 962,032,784
13 Other liabilities Settlement/adjustment for previous years (2,968,286,831) (1,767,691,305) (2,959,316,843) (1,631,332,206)
Paid during the year 13.3.2 3,690,357,073 1,739,041,304 3,584,048,614 1,683,595,759
Privileged creditors 13.1 696,520,198 593,300,694 696,520,198 593,300,694
1,867,040,370 1,144,970,128 1,639,028,107 1,014,296,336
Acquirer liabilities 13.2 1,308,342,901 954,182,205 1,308,342,901 954,182,205
1,794,622,024 2,779,825,419 1,771,534,659 2,714,902,838
Sundry creditors 114,465,841 75,526,803 114,465,841 75,526,803
Security deposit 6,727,979 6,067,856 6,727,979 6,067,856
13.3.1 Income tax expenses / Provision for tax
Current tax liability/(assets) 13.3 1,794,622,024 2,779,825,419 1,771,534,659 2,714,902,838
Provision for loans, advances and OBS Current tax expenses
13.4 10,560,988,589 9,188,404,596 10,320,670,886 9,111,530,726 Current year 2,807,224,189 3,233,678,847 2,738,698,697 3,137,200,267
exposures (excluding OBO)
Provision for loans, advances and OBS Adjustment for prior years (98,018,263) (216,251,850) (98,018,263) (224,715,352)
13.4.a 253,985,199 246,897,402 253,985,199 246,897,402 Total income tax expenses 2,709,205,926 3,017,426,997 2,640,680,434 2,912,484,915
exposures (OBO)
Special general provision for Covid-19 13.4.b 602,352,869 - 602,352,869 -
13.3.2 Income tax paid during the year
Startup Fund 76,922,811 - 76,922,811 -
Interest suspense account 13.5 2,425,163,343 1,823,520,136 2,233,375,188 1,653,910,317 Withholding tax deducted at source 291,385,450 228,497,403 282,193,122 179,919,697
Provision for protested bill and others 13.6 191,142,995 145,373,498 191,142,995 145,373,498 Advance tax paid in cash 3,398,971,623 1,510,543,901 3,301,855,492 1,503,676,062
Provision for non-banking assets 12,345,330 12,345,330 12,345,330 12,345,330 Advance income tax paid 3,690,357,073 1,739,041,304 3,584,048,614 1,683,595,759
Provision for rebate to good borrowers 13.7 46,100,257 46,100,257 46,100,257 46,100,257
Provision for loss on revaluation of shares (net) 13.8 843,471,722 1,067,654,623 686,959,533 901,313,537
Advance interest/commission received 59,169,628 46,060,675 55,768,640 36,379,504
Expenses payable 533,270,894 512,872,104 501,654,571 490,287,580
Interest payable on borrowing 13.9 296,900,882 545,663,660 296,863,401 544,808,104
Miscellaneous liabilities/payables 13.10 990,877,633 477,122,524 850,648,682 469,321,632
Lease liabilities (present value of lease payments) 13.11 893,842,167 622,832,947 866,681,805 608,816,783
Net Benefit Obligation 13.12 422,781,132 - 422,781,132 -
Other liabilities of subsidiaries 13.13 352,816,687 267,012,538 - -
22,482,811,081 19,410,763,266 21,315,844,876 18,611,065,065

244 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 245
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13.3.a Reconciliation of effective tax rate (Bank) 2020 2019 Amount in BDT
% Taka % Taka Consolidated Bank
Notes
Profit before income tax as per profit and loss account 6,690,791,752 6,256,165,081 2020 2019 2020 2019
Income tax as per applicable tax rate 37.5% 2,509,046,907 37.5% 2,346,061,905 13.4.a.1 Provision for loans, advances and OBS exposures
Factors affecting the tax charged in current year on non (including OBO):
deductible expenses 11.79% 789,021,694 16.67% 1,043,176,880
General provision on loans and advances 2,184,019,494 2,477,760,747 2,184,019,494 2,477,760,747
Tax exempted income (on govt. treasury securities) -7.84% (524,602,868) -3.21% (200,577,158)
Special General Provision for Covid-19 602,352,869 - 602,352,869 -
Tax savings from reduced tax rates (on dividend income) -0.36% (23,994,906) -0.59% (37,093,370)
General provision on off-balance sheet exposures 891,197,235 871,788,691 891,197,235 871,788,691
Tax savings from reduced tax rates (on gain on
-0.16% (10,772,129) -0.23% (14,367,989) Specific provision on loans and advances 7,739,757,059 6,085,752,561 7,499,439,355 6,008,878,691
sale of quoted securities)
11,417,326,656 9,435,301,998 11,177,008,953 9,358,428,128
Prior year adjustment (release of excess
-1.46% (98,018,263) -3.59% (224,715,352)
provision for the IY 2016 vs IY 2014 & 2015)
Deferred tax income (net) -0.78% (52,451,737) -10.62% (664,461,960) 2020 (Bank- Solo) 2020 2019
13.4.1 Provision for loans and advances charged during the year
Total income tax expenses 38.68% 2,588,228,697 35.93% 2,248,022,956 Onshore Offshore Total Total
General Provision on loans and advances (310,549,973) 17,095,602 (293,454,371) 174,331,665
Amount in BDT Special General Provision for Covid-19 560,480,082 41,908,437 602,388,520 -
Consolidated Bank General Provision on off-balance sheet exposures 29,129,469 (9,713,915) 19,415,553 (117,854,862)
13.4 Provision for loans, advances and OBS General Provision charged during the year 279,059,577 49,290,124 328,349,702 56,476,804
2020 2019 2020 2019 Specific Provision charged during the year 1,490,560,665 - 1,490,560,665 1,890,482,828
exposures (excluding OBO)
Recovery from loans written off earlier (725,759,332) - (725,759,332) (635,666,487)
A) Specific provision movement Specific Provision (net of recovery) for the year * 764,801,333 - 764,801,333 1,254,816,341
Opening balance 6,085,752,561 4,195,269,733 6,008,878,691 4,118,395,862 Total Provision for loans and advances charged during the year 1,043,860,910 49,290,124 1,093,151,035 1,311,293,145
On fully provided debt written off during the year - - - -
On recovery from loans written off earlier 725,759,332 635,666,487 725,759,332 635,666,487 *Specific provision charged during the year has been presented after netting of recovery from written off loans as per BRPD circular
Specific provision charged (net of recovery) for no. 14, dated 25 June 2003.
13.4.1 928,245,166 1,254,816,341 764,801,333 1,254,816,341
the year 13.4.2 Calculation of provision for loans and advances (Solo) Amount in BDT
Provision held at the end of the year 7,739,757,059 6,085,752,561 7,499,439,355 6,008,878,691
Interest Eligible Base for Required Actual Surplus /
Nature Outstanding
B) General provision movement on loans and advances suspense securities provision provision provision (Shortage)
Opening balance 2,243,972,050 2,081,407,589 2,243,972,050 2,081,407,589 Standard 219,480,207,242 1,127,304,721 - 219,513,238,163 2,740,249,166 2,741,783,660 1,534,494
Provision made during the year 13.4.1 (310,549,973) 162,564,461 (310,549,973) 162,564,461 SMA (Special
1,732,991,015 224,766,106 570,623,146 506,622,521 44,588,703 44,588,703 -
Mention Account)
Provision held at the end of the year 1,933,422,077 2,243,972,050 1,933,422,077 2,243,972,050
SS (Substandard) 1,032,797,745 200,207,142 289,562,944 568,900,205 119,867,164 119,867,164 -
C) General provision movement on off-balance sheet exposures DF (Doubtful) 287,325,617 47,378,453 87,744,003 153,800,126 123,454,496 1,890,248,586 1,766,794,089
Opening balance 858,679,985 976,118,239 858,679,985 976,118,239 BL (Bad/Loss) 4,906,259,496 633,718,766 1,065,275,867 3,821,853,422 5,489,323,606 5,489,323,606 -
Provision made during the year 13.4.1 29,129,469 (117,438,254) 29,129,469 (117,438,254) Staff loan 1,504,281,781 - - - - - -
Provision held at the end of the year 887,809,454 858,679,985 887,809,454 858,679,985 Total funded
228,943,862,895 2,233,375,188 2,013,205,960 224,564,414,437 8,517,483,135 10,285,811,718 1,768,328,583
exposures
Provision for loans, advances and OBS exposures Off-balance sheet
10,560,988,589 9,188,404,596 10,320,670,886 9,111,530,726 104,060,278,285 - - 891,197,235 891,197,235 -
(excluding OBO) exposures
Total exposures 333,004,141,180 2,233,375,188 2,013,205,960 224,564,414,437 9,408,680,370 11,177,008,953 1,768,328,583
13.4.a Provision for loans, advances and OBS exposures (for OBO)
Domestic Banking Operation (Main Operation) 9,112,822,385 10,881,150,968 1,768,328,583
General provision on loans and advances 250,597,417 233,788,697 250,597,417 233,788,697 Offshore Banking Operation 295,857,986 295,857,986 -
General provision on off-balance sheet exposures 3,387,781 13,108,706 3,387,781 13,108,706 Total provision for loans and advances & OBS exposures 9,408,680,370 11,177,008,953 1,768,328,583
253,985,199 246,897,402 253,985,199 246,897,402
*Specific provision BDT 1,766.79 million has been maintained on qualitative ground for certain loan accounts in addition to the
13.4.b Special general provision for Covid-19
requirement to strengthen the base for provision of the bank.
Special General Provision for Covid-19 (for DBO) 560,480,082 - 560,480,082 -
Special General Provision for Covid-19 (for OBO) 41,872,787 - 41,872,787 - 13.5 Interest suspense account
602,352,869 - 602,352,869 -
Opening balance 1,823,520,136 1,348,450,204 1,653,910,317 1,178,840,386
As per BRPD circular letter no. 56 dated 10 December 2020 and subsequent BB clarification letter ref. BRPD(P-1) 661/13/2021- Amount transferred during the year 1,124,868,127 970,813,015 1,102,689,792 970,813,015
Amount recovered during the year* (523,224,921) (495,743,084) (523,224,921) (495,743,084)
117 dated 05 January 2021, 1% Special General Provision for Covid 19 has been maintained on outstanding loan balance of BDT
Amount written off during the year** - - - -
60,235.29 million as on 31-12-2020 for accounts enjoying payment by deferral (PBD) facilities.
Balance at the end of the year 2,425,163,343 1,823,520,136 2,233,375,188 1,653,910,317
Total Provision (SP,GP & Special GP) for loans, advances
* Interest receivable on margin loan having negative equity (extended by subsidiaries) is included in the consolidated interest
and OBS exposures (Note: 13.4+13.4.a+13.4.b) 11,417,326,656 9,435,301,998 11,177,008,953 9,358,428,128
suspense account.
** No loan was written off during the year 2019 and 2020.

13.6 Provision for protested bill and others

Opening balance 145,373,498 52,516,000 145,373,498 52,516,000
Provision made during the year 49,545,498 92,857,498 49,545,498 92,857,498
Adjusted during the year (3,776,000) - (3,776,000) -
Balance at the end of the year 191,142,995 145,373,498 191,142,995 145,373,498

246 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 247
 Financial Reports
Amount in BDT Bank-Solo
Consolidated Bank Superannuation
Notes Gratuity Fund 2020 2019
2020 2019 2020 2019 Fund
13.7 Provision for rebate to good borrowers 13.12.a.1 Remeasurement loss (as per actuarial report)
Opening balance 46,100,257 36,100,257 46,100,257 36,100,257 Opening balance - - - -
Provision made during the year - 10,000,000 - 10,000,000 Remeasurement (gain) on plan assets - - - -
Balance at the end of the year 46,100,257 46,100,257 46,100,257 46,100,257 Remeasurement loss on defined benefit obligation 274,826,750 61,151,750 335,978,500
274,826,750 61,151,750 335,978,500 -
13.8 Provision for diminution of value of equity securities
Opening balance 1,067,654,623 447,191,812 901,313,537 361,667,493 13.12.b Fair value of plan assets
Provision (released)/charged during the year (224,182,900) 620,462,811 (214,354,004) 539,646,044
Opening balance (as per actuarial report) 1,152,711,650 117,371,750 1,270,083,400 -
Balance at the end of the year 843,471,722 1,067,654,623 686,959,533 901,313,537
Interest income 81,807,166 5,704,463 87,511,629 -
Provision for diminution (gain net of) of value of quoted shares has been made as per DOS circular no. 4, dated 24 November 2011 Contribution to the fund 240,239,614 14,079,990 254,319,604 -
and for mutual funds (closed-end) as per DOS circular letter no. 03 dated 12 March 2015 of Bangladesh Bank. Paid to outgoing employees (98,956,009) (14,520,000) (113,476,009) -
1,375,802,421 122,636,203 1,498,438,624 -
13.9 Interest Payable on Borrowing
Amount in BDT
Interest payable on Borrowing (including subordinated bond) 246,650,561 438,773,941 246,613,080 364,155,524
Consolidated Bank
Interest payable on Borrowing-Offshore 50,934,485 202,701,077 50,250,321 202,701,077 Notes
2020 2019 2020 2019
297,585,046 641,475,019 296,863,401 566,856,602
Less: Inter unit/ company elimination 13.13 Other liabilities of subsidiaries
(684,164) (95,811,359) - (22,048,498)
(with int. receivable account) Accounts payable (trading) 353,577,290 259,896,168
296,900,882 545,663,660 296,863,401 544,808,104 Sundry creditors 3,313,054 720,340
Dividend payable 40,590,480 39,335,760
13.10 Miscellaneous liabilities/payables
Provision for Employees Gratuity Fund 127,515 10,683,018
Received under compromise settlement of 397,608,339 310,635,286
84,599,923 57,033,777 84,599,923 57,033,777
classified & w/off loans Less: Intra group outstanding balances
NRB remittance payable 159,497,500 104,099,786 159,497,500 104,099,786 Share trading account (4,201,172) (4,286,988)
Interest suspense for term placement 41,532,917 - 41,532,917 - Dividend account (40,590,480) (39,335,760)
Unclaimed dividend account 13.10.a 83,541,076 73,410,772 83,541,076 73,410,772 (44,791,652) (43,622,748)
Other liabilities (FDD payable, unclaimed insturment, etc.) 621,706,218 242,578,189 481,477,267 234,777,297 Net other liabilities 352,816,687 267,012,538
990,877,633 477,122,524 850,648,682 469,321,632
13.b Nostro Reconciliation
13.10.a Unclaimed dividend account The Bank is not required to keep provision on the unreconciled debit balance as at balance sheet date as there was no debit entry
Unclaimed dividend account is the residual amount of declared dividend for the income years 1997 to 2019 which has not yet been aging more than three months.
paid to or claimed by the shareholders. The bank has been maintaining year-wise separate bank accounts for unclaimed dividends of
BDT 83.54 M (as of 31-12-2020) out of which BDT 81.69 M is cash dividend and BDT 1.85 M is the fractional amount of stock dividend. 14 Share Capital
13.11 Lease liabilities (present value of lease payments) A) Authorized capital
1,200,000,000 ordinary shares of BDT 10 each 12,000,000,000 12,000,000,000 12,000,000,000 12,000,000,000
The bank recognised lease liabilities which is the present value of lease payments to be made over the lease term from the date of
commencement or 01 January 2019 (date of initial application), whichever is later. The lease payments include fixed and variable lease
B) Issued, subscribed and Number of Shares
payments (less any adjustment for initial payment), and amount is expected to be paid under residual value of guarantees. The lease
fully paid up capital 2020 2019
payments also include the exercise price of purchase option reasonably certain to be exercised by the bank and payment of penalties for
terminating the lease. The lease payments have been discounted using Treasury bond rate of similar tenors i.e. 3 -10 years as implicit Issued against cash 129,345,000 129,345,000 1,293,450,000 1,293,450,000 1,293,450,000 1,293,450,000
Issued as bonus share 682,454,547 682,454,547 6,824,545,470 6,824,545,470 6,824,545,470 6,824,545,470
borrowing rate. For example, 5 years T-bond rate of 8.86% of January 2020 (5.93% of January 2019) has been used for those contracts
811,799,547 811,799,547 8,117,995,470 8,117,995,470 8,117,995,470 8,117,995,470
having weighted average lease tenor of 5 years or more implemented from the date of initial application (01 January 2019).

Bank-Solo 14.1 Slab wise list as on 31 December

Superannuation Pursuant to clause (cha) of the Memorandum of Association and Article 4 of the Articles of Association of the Bank and clause 4 of
13.12 Net defined benefit obligation Gratuity Fund 2020 2019
Fund BCCI Reconstruction Scheme 1992, the Authorised Capital of the Bank is BDT 12,000,000,000 and issued/subscribed/fully paid up
Defined benefit obligation 13.12.a 1,752,284,043 168,935,713 1,921,219,756 - capital is BDT 8,117,995,470 denominated by BDT 10 per share. Detailed break up of paid up capital of BDT 8,117,995,470 as on 31
Less: Fair value of plan assets 13.12.b 1,375,802,421 122,636,203 1,498,438,624 - December 2020 is as follows:
376,481,622 46,299,510 422,781,132 -
Percentage of group wise shareholding:
Opening balance (as per actuarial report) 1,152,711,641 117,371,750 1,270,083,391 - 2020 2019
Interest cost 99,042,152 8,547,463 107,589,615 -
Shareholders group % of % of
Current service cost 324,659,509 (3,615,250) 321,044,259 - No. of shares Taka No of Shares Taka
Paid to outgoing employees (98,956,009) (14,520,000) (113,476,009) - shareholding shareholding
Remeasurement loss 13.12.a.1 274,826,750 61,151,750 335,978,500 - Directors 245,030,885 30.18% 2,450,308,850 256,202,162 31.56% 2,562,021,620
1,752,284,043 168,935,713 1,921,219,756 - General Public 479,452,756 59.06% 4,794,527,560 467,477,192 57.59% 4,674,771,920
Financial Institutions 87,315,906 10.76% 873,159,060 88,120,193 10.85% 881,201,930
Total 811,799,547 100.00% 8,117,995,470 811,799,547 100.00% 8,117,995,470

248 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 249
 Financial Reports
Range-wise distribution of the subscribed share: Capital to risk weighted assets ratio (CRAR)
Range No. of shareholders No. of shares (%) of shareholding
Minimum requirement Consolidated Solo
001-500 3,206 498,927 0.06%
501-5000 2,480 4,010,729 0.49% 2020 2019 2020 2019 2020 2019
5001-10000 304 2,164,577 0.27% On Tier-1 capital to RWA 6.00% 6.00% 10.68% 9.90% 10.78% 9.99%
10001-20000 231 3,224,537 0.40% Against Against
20001-30000 73 1,836,531 0.23% standard of standard of
30001-40000 41 1,433,913 0.18% Capital to RWA ratio minimum 10% minimum 10%
40001-50000 35 1,589,917 0.20% 15.03% 14.55% 15.23% 14.74%
(CRAR) with capital with capital
50001-100000 83 5,764,022 0.71%
100001-1000000 163 55,831,616 6.88% conservation conservation
1000001 and above 88 735,444,778 90.59% buffer 2.50% buffer 2.50%
Total 6,704 811,799,547 100.00% Amount in BDT

Status of shareholding (shares of EBL) as on 31 December 2020 by CEO, CS, CFO, Head of Internal Control and Compliance and top Consolidated Bank
Notes
five salaried executives is shown in the following table: 2020 2019 2020 2019

Name Designation No. of shares (EBL) held 15 Statutory Reserve

CEO, CS, CFO & HoICC and their spouses & minor children: Opening balance 8,117,995,470 7,379,995,890 8,117,995,470 7,379,995,890
Ali Reza Iftekhar Managing Director & CEO 195,800 Transferred from profit during the year - 737,999,580 - 737,999,580
Md. Mustafa Haikal Hashmi DMD & Head of ICC - Closing balance 8,117,995,470 8,117,995,470 8,117,995,470 8,117,995,470
Masudul Hoque Sardar SEVP & Chief Financial Officer -
Md. Abdullah Al Mamun VP & Company Secretary - 16 Dividend equalization reserve
"As per BRPD Circular No. 18 dated 20 October 2002, Banks are required to transfer an equal amount of net profit (amount by which
Executives (Top five salaried executives other than CEO, CS, CFO & HoICC) cash dividend exceeds 20%) to Dividend Equalization Account while paying cash dividend in excess of 20%. This is treated as 'Core
Hassan O. Rashid Additional Managing Director -
Capital' of the Bank."
Ahmed Shaheen Deputy Managing Director - Corporate Banking -
M. Khurshed Alam Deputy Managing Director (P&S) - 17 Assets revaluation reserve (land and other assets)
Mehdi Zaman SEVP & Head of Treasury - Reserve for revaluation of land properties 17.01 2,476,074,358 2,476,074,358 2,476,074,358 2,476,074,358
Riad Mahmud Chowdhury SEVP & Head of Corporate Business, Dhaka 8,550 Reserve for revaluation of treasury securities (HFT) 17.02 817,134,941 211,787 817,134,941 211,787
Reserve for amortization of treasury securities (HTM) 17.03 20,221,049 99,989,850 20,221,049 99,989,850
Shares held by any shareholder to the extent of 10% or more Nil Reserve against non-banking assets 17.04 93,231,165 96,391,165 93,231,165 96,391,165
Amount in BDT Reserve for fair value of TRECs to EBLSL and
17.05 85,418,367 85,418,367 - -
Shares of DSE and CSE
Consolidated Bank
Notes 3,492,079,880 2,758,085,527 3,406,661,513 2,672,667,160
2020 2019 2020 2019
17.01 Reserve for revaluation of land properties
14.2 Capital to risk weighted assets ratio (CRAR):
This revaluation reserve is made against land properties only. In reality, buyers bear the tax on behalf of sellers at the time of land
Common Equity Tier -1 Capital
Paid up capital 8,117,995,470 8,117,995,470 8,117,995,470 8,117,995,470 registration and taxes paid at the time of land registration are final discharge of related tax liability of the seller (bank). Hence, no
Statutory reserve 8,117,995,470 8,117,995,470 8,117,995,470 8,117,995,470 deferred tax liability has been recognised on land revaluation reserve of the bank. There is no other material temporary timing
General reserve 603,493,370 603,493,370 603,493,370 603,493,370 difference in classified assets/liabilities for which deferred tax asset/liability is required to be accounted for in the year.
Dividend equalization reserve 356,040,000 356,040,000 356,040,000 356,040,000 17.02 Reserve for revaluation of treasury securities (HFT)
Retained earnings 8,969,072,019 6,002,777,699 8,583,707,111 5,697,244,179
Opening balance 211,787 2,838,449 211,787 2,838,449
Regulatory adjustments: 26,164,596,329 23,198,302,009 25,779,231,420 22,892,768,489
Addition during the year 1,793,874,362 166,739,430 1,793,874,362 166,739,430
Goodwill and all other intangible assets (WDV of Software) (225,786,420) (191,733,870) (225,271,226) (191,039,431)
Adjustment made during the year (976,951,208) (169,366,092) (976,951,208) (169,366,092)
Reciprocal crossholdings in the CET 1 capital (170,605,317) (157,139,616) (88,255,255) (78,983,436)
Closing balance 817,134,941 211,787 817,134,941 211,787
Investment in own CET1 capital (mutual fund) (43,481,580) (22,867,930) (43,481,580) (22,867,930)
Deferred tax asset (95% as per BB Circular) (1,955,571,535) (1,880,778,596) (1,955,571,535) (1,880,778,596) *As per instruction/circular of Bangladesh Bank vide DOS circular Letter No 05 dated 26 May 2008 and subsequent clarifications
23,769,151,477 20,945,781,997 23,466,651,825 20,719,099,096 on 28 January 2009.

Tier -2 Capital 17.03 Reserve for amortization of treasury securities (HTM)

General provision 3,677,569,598 3,349,549,437 3,677,569,598 3,349,549,437 Opening balance 99,989,850 7,092,034 99,989,850 7,092,034
Subordinated debt 6,000,000,000 6,500,000,000 6,000,000,000 6,500,000,000 Addition during the year 14,358,937 99,035,199 14,358,937 99,035,199
Revaluation reserves - 2,247,343,035 - 2,247,343,035 Adjustment made during the year (94,127,738) (6,137,383) (94,127,738) (6,137,383)
9,677,569,598 12,096,892,472 9,677,569,598 12,096,892,472 Closing balance 20,221,049 99,989,850 20,221,049 99,989,850
Regulatory adjustment:
Revaluation reserves for fixed assets & *As per instruction/circular of Bangladesh Bank vide DOS circular Letter No 05 dated 26 May 2008 and subsequent clarifications
- (2,247,343,035) - (2,247,343,035)
securities (100% in 2019) on 28 January 2009.
9,677,569,598 9,849,549,437 9,677,569,598 9,849,549,437
A. Total regulatory capital 33,446,721,075 30,795,331,434 33,144,221,423 30,568,648,533 17.04 Reserve against non-banking assets
B. Total risk weighted assets (RWA) 222,540,458,869 211,624,070,089 217,653,889,659 207,437,099,388 Opening balance 96,391,165 121,671,165 96,391,165 121,671,165
C. Minimum capital requirement (MCR) (10% on B ) 22,254,045,887 21,162,407,009 21,765,388,966 20,743,709,939 Adjustment made during the year (3,160,000) (25,280,000) (3,160,000) (25,280,000)
D. Surplus/(deficiency) [A - C] 11,192,675,188 9,632,924,425 11,378,832,457 9,824,938,594 Closing balance 93,231,165 96,391,165 93,231,165 96,391,165

250 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 251
 Financial Reports
Amount in BDT Amount in BDT
Consolidated Bank Consolidated Bank
Notes Notes
2020 2019 2020 2019 2020 2019 2020 2019
17.05 Reserve for fair value of TRECs to EBLSL and Shares of DSE and CSE 21.2 Letters of guarantees
(held by EBLSL under Demutualization Scheme) Directors 192,900 - 192,900 -
Fair value of DSE-TREC held by EBLSL 481,427,540 481,427,540 Government 513,802,927 514,396,327 513,802,927 514,396,327
Fair value of CSE-TREC held by EBLSL 201,500,000 201,500,000 Banks and other financial institutions 12,489,452,702 9,767,536,433 12,489,452,702 9,767,536,433
Fair value of Shares of DSE (5,411,329 shares @ BDT 10) 113,909,572 113,909,572 Others (Customers etc.) 14,226,167,427 13,039,310,965 14,226,167,427 13,039,310,965
Fair value of Shares of CSE (4,287,330 shares @ BDT 10) 43,879,755 43,879,755 27,229,615,956 23,321,243,725 27,229,615,956 23,321,243,725
840,716,867 840,716,867 Letters of guarantee-Offshore Banking Unit - - - -
Less: 27,229,615,956 23,321,243,725 27,229,615,956 23,321,243,725
Value of DSE Membership booked earlier 553,798,500 553,798,500
Value of CSE Membership booked earlier 201,500,000 201,500,000 As per BRPD circular no 13 dated 18 October 2018, 1% General provision has been maintained against Letter of Guarantee, except
755,298,500 755,298,500 those against which counter guarantee has been issued by Multilateral Development Banks/International Banks having BB rating
Revaluation reserve 85,418,367 85,418,367 grade equivalent 1 to 4 for which a provision 0% - 1% is required to be maintained.
21.3 Irrevocable letters of credit
18 Actuarial re-measurement gain/(loss) on defined benefit plans
Letters of credit - Cash sight 5,970,342,619 4,120,630,652 5,970,342,619 4,120,630,652
Opening balance - - - - Letters of credit - Cash usance 12,080,839,347 10,268,405,671 12,080,839,347 10,268,405,671
Re-measurement gain/(loss) on defined benefit obligation (335,978,500) - (335,978,500) - Letters of credit - Back to back 7,861,022,607 8,171,966,709 7,861,022,607 8,171,966,709
(335,978,500) - (335,978,500) - 25,912,204,574 22,561,003,033 25,912,204,574 22,561,003,033
Less: Adjustment with deferred tax assets 125,991,938 - 125,991,938 Letters of credit (Cash sight)-Offshore Banking Unit 51,448,311 116,301,830 51,448,311 116,301,830
Closing balance (209,986,563) - (209,986,563) - Letters of credit (Cash usance)-Offshore Banking Unit 121,043,709 462,392,898 121,043,709 462,392,898
26,084,696,594 23,139,697,761 26,084,696,594 23,139,697,761
Actuarial re-measurement gain/(loss) results from increase in the present value of the defined benefit obligation (Gratuity Fund
and Superannuation Fund) due to changes in actuarial assumptions and experience adjustment which has been shown as equity As per BRPD circular letter no 01 dated 03 January 2018, 1% general provision on Letter of Credit issued in favour of Fast Track
component as element of OCI as per IAS 19 'Employee Benefits'. Power Projects against LOI under BPDB has been waived.

19 Foreign currency translation difference: [gain/(loss)] 21.4 Bills for collection

Assets and liabilities of EBL Offshore Banking Operation and EBL Finance (HK) Ltd (on consolidation) have been presented into Foreign Documentary Bills Collection 2,998,233,689 3,158,467,141 2,998,233,689 3,158,467,141
Taka (which is the functional currency of the Bank) using year-end standard mid rate of exchange of the Bank @ USD 1 = BDT Local Documentary Bills Collection 4,598,513,118 3,903,674,421 4,598,513,118 3,903,674,421
84.8011 and HKD 1= BDT 10.9704. Yearly incomes and expenses are translated using monthly average exchange rate (USD 1= BDT 7,596,746,807 7,062,141,562 7,596,746,807 7,062,141,562
Bills for collection- Offshore Banking Unit 435,605,969 901,623,617 435,605,969 901,623,617
84.8733 & HKD 1 =BDT 10.9561). The net cumulative result of the exchange difference has been presented separately as equity
8,032,352,776 7,963,765,179 8,032,352,776 7,963,765,179
component as per IAS 21 (para 39).
As per BRPD circular no 07 dated 21 June 2018, 1% general provision on Bills for Collection has been waived. As such no general
20 Surplus in profit and loss account
provision on outstanding Bills for Collection worth BDT 8,032.35 million has been maintained as on the reporting date.
Opening balance 6,002,777,699 4,959,549,553 5,697,244,179 4,637,557,933
Profit for the year 4,180,381,016 3,990,393,331 4,102,563,055 4,008,142,125 21.5 Forward assets purchased and forward deposits placed (against FCY)
Transfer to statutory reserve - (737,999,580) - (737,999,580) Forward assets purchased 120,428,481 347,552,793 120,428,481 347,552,793
Bonus share issued - (737,999,580) - (737,999,580) Forward deposits placed - - - -
Cash dividend paid (1,217,699,321) (1,475,999,178) (1,217,699,321) (1,475,999,178) 120,428,481 347,552,793 120,428,481 347,552,793
Foreign currency adjustment for offshore 3,612,625 4,833,152 1,599,197 3,542,459
As per BRPD instruction, 1% general provision on outstanding Forward Assets Purchased worth BDT 120.43 million has been
Closing balance 8,969,072,019 6,002,777,699 8,583,707,111 5,697,244,179
maintained.
21 Contingent liabilities:
22 Interest income
Acceptance and endorsements 21.1 42,593,184,478 45,008,741,219 42,593,184,478 45,008,741,219
Letters of guarantee 21.2 27,229,615,956 23,321,243,725 27,229,615,956 23,321,243,725 Interest on loans and advances 19,217,002,936 21,956,591,405 18,612,083,477 21,215,537,730
Irrevocable letters of credit 21.3 26,084,696,594 23,139,697,761 26,084,696,594 23,139,697,761 Interest on money at call and short notice 19,558,828 31,117,985 19,558,828 30,637,367
Bills for collection 21.4 8,032,352,776 7,963,765,179 8,032,352,776 7,963,765,179 Interest on placement with banks and financial institutions 1,258,910,739 2,271,859,576 1,243,077,283 2,256,391,854
Forward assets purchased and forward deposits Interest on foreign currency balances 46,522,533 90,585,501 46,522,533 90,585,501
21.5 120,428,481 347,552,793 120,428,481 347,552,793 20,541,995,036 24,350,154,466 19,921,242,120 23,593,152,451
placed (against FCY)
104,060,278,286 99,781,000,677 104,060,278,286 99,781,000,677 Less: Inter unit/company elimination (530,626,708) (766,884,830) (253,828,364) (429,546,631)
20,011,368,328 23,583,269,636 19,667,413,756 23,163,605,820
21.1 Acceptance and endorsements
Acceptances (Back to Back) 8,817,799,726 9,282,415,697 8,817,799,726 9,282,415,697 23 Interest paid on deposits, borrowings and others
Acceptances (ULC-Cash) 33,609,098,625 34,994,149,697 33,609,098,625 34,994,149,697 Interest on deposits 23.01 11,473,800,791 12,660,570,773 11,473,800,791 12,660,570,773
42,426,898,351 44,276,565,394 42,426,898,351 44,276,565,394 Interest on borrowings from Banks & FIs 23.02 2,491,691,516 2,711,457,065 1,993,838,225 2,073,909,058
Acceptances (ULC-Cash)- Offshore Banking Unit 166,286,127 732,175,825 166,286,127 732,175,825 Interest on borrowings from BB & others 23.03 437,825,267 665,766,277 437,825,267 665,766,277
42,593,184,478 45,008,741,219 42,593,184,478 45,008,741,219 Interest on lease liabilities 66,048,878 34,783,596 64,673,564 33,519,517
Interest on Margin 676,183 676,183 676,183 676,183
As per BRPD circular letter no 01 dated 03 January 2018, 1% general provision on Letter of Credit issued in favour of Fast Track
Net interest cost (on Gratuity Fund) 23.04 17,234,986 - 17,234,986 -
Power Projects against LOI under BPDB has been waived. As such, on the reporting date, no general provision on outstanding Net interest cost (on Superannuation Fund) 23.05 2,843,000 - 2,843,000 -
Acceptance value of BDT 819.26 million issued on account of Fast Track Power Projects has been maintained. 14,490,120,621 16,073,253,894 13,990,892,016 15,434,441,808
Less: Inter unit/company elimination (530,626,708) (766,884,830) (253,828,364) (429,546,631)
13,959,493,913 15,306,369,064 13,737,063,652 15,004,895,176

252 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 253
 Financial Reports
Amount in BDT Amount in BDT
Consolidated Bank Consolidated Bank
Notes Notes
2020 2019 2020 2019 2020 2019 2020 2019
23.01 Interest on deposits 24.2 Gain from government securities
Interest on Savings and Currnet Deposits 1,857,457,425 1,719,665,429 1,857,457,425 1,719,665,429 Gain from trading in govt. treasury bills/bonds 988,655,817 178,086,606 988,655,817 178,086,606
Interest on Special Notice Deposits (SND) 1,369,155,564 1,753,891,770 1,369,155,564 1,753,891,770 Gain from amortization in govt. treasury bills 788,855,985 518,419,895 788,855,985 518,419,895
Interest on Term Deposits 8,247,187,803 9,187,013,573 8,247,187,803 9,187,013,573 1,777,511,802 696,506,501 1,777,511,802 696,506,501
11,473,800,791 12,660,570,773 11,473,800,791 12,660,570,773
*As per instruction/circular of Bangladesh Bank vide DOS circular letter no 05 dated 26 May 2008 and subsequent clarifications on
23.02 Interest on borrowings from Banks & FIs 28 January 2009.
Interest on demand borrowing 674,074,462 934,797,567 456,124,059 501,524,348 25 Commission, exchange and brokerage
Interest on term borrowing 1,032,807,239 1,317,126,167 752,904,351 1,112,851,379 Fees, commission and charges 25.1 2,117,045,300 2,341,920,529 2,052,782,840 2,235,112,790
Interest on Subordinated Bond 591,279,891 445,712,494 591,279,891 445,712,494 Exchange gain (net of exchange loss) 25.2 769,080,548 1,215,012,691 770,268,476 1,213,103,501
Inter-bank Repo (Repurchase agreement) 193,529,923 13,820,837 193,529,923 13,820,837 Brokerage commission 25.3 181,242,188 228,527,953 - -
2,491,691,516 2,711,457,065 1,993,838,225 2,073,909,058 3,067,368,036 3,785,461,173 2,823,051,316 3,448,216,291
23.03 Interest on borrowings from BB & others 25.1 Fees, commission and charges:
Borrowing under IPFF 1,994,338 2,231,976 1,994,338 2,231,976 Loan processing fees 212,912,304 304,427,702 212,912,304 304,427,702
Borrowing under EDF 314,255,725 497,306,329 314,255,725 497,306,329 Service charges (Periodic & Adhoc) 340,476,876 421,329,339 295,367,503 349,814,224
Borrowing under LTFF 48,253,089 79,746,779 48,253,089 79,746,779 Early settlement fees 38,480,163 49,359,270 38,480,163 49,359,270
Borrowing under BADP (refinance scheme) 10,621,714 15,215,228 10,621,714 15,215,228 Cards fees & charges (net of cards direct expenses) 25.1.a 677,619,620 668,091,727 677,619,620 668,091,727
Borrowing under SMESPD (refinance scheme) 38,198,340 43,108,303 38,198,340 43,108,303 Commission on general banking (PO, FDD, remittance, etc) 134,725,126 100,448,689 134,725,126 100,448,689
Second Crop Diversification Project 24,082,593 27,140,700 24,082,593 27,140,700 Commission on trade business (LG, LC, Acceptance) 712,831,211 798,263,803 693,678,124 762,971,179
Borrowing from SME Foundation 419,469 1,016,963 419,469 1,016,963 2,117,045,300 2,341,920,529 2,052,782,840 2,235,112,790
437,825,267 665,766,277 437,825,267 665,766,277 25.1.a Cards fees and charges (net of cards direct expenses):
23.04 Net interest cost (on Gratuity Fund) Cards fees and charges:
Fees and charges (Debit, Prepaid Cards, etc.) 191,123,339 190,673,524 191,123,339 190,673,524
Interest expense on defined benefit obligation (for
99,042,152 - 99,042,152 - Fees and charges (Credit cards):
Gratuity Fund) Annual and transactional fees 274,571,968 249,005,026 274,571,968 249,005,026
Less: Interest income on plan assets (for Gratuity Fund) (81,807,166) - (81,807,166) - Late payment and overlimit fees 221,676,523 265,429,683 221,676,523 265,429,683
17,234,986 - 17,234,986 - Cash advance fees 1,990,370 19,907,562 1,990,370 19,907,562
23.05 Net interest cost (on Superannuation Fund) Interchange reimbursement (IRF) and aquiring fees 160,403,161 203,539,765 160,403,161 203,539,765
Risk assurance premium 107,876,151 106,910,694 107,876,151 106,910,694
Interest expense on defined benefit obligation
8,547,463 - 8,547,463 - Merchant service commission 205,356,283 113,741,310 205,356,283 113,741,310
(for Superannuation Fund)
Replacement fees and others 356,381 19,897,028 356,381 19,897,028
Less: Interest income on plan assets (for
(5,704,463) - (5,704,463) - 1,163,354,176 1,169,104,592 1,163,354,176 1,169,104,592
Superannuation Fund) Cards direct expenses
2,843,000 - 2,843,000 - Membership and Priority Pass 265,453,706 281,583,640 265,453,706 281,583,640
24 Investment income Acquiring and IRF charges 148,195,460 87,014,972 148,195,460 87,014,972
Dividend income 24.1 152,054,258 162,940,753 137,113,749 211,962,117 Insurance expense 32,270,760 53,387,302 32,270,760 53,387,302
Interest on reverse REPO 18,532,283 184,932,373 18,532,283 184,932,373 Other service charges (ATM card usage, cash back, reward etc) 39,814,630 79,026,950 39,814,630 79,026,950
Interest on corporate bonds 455,304,501 208,387,717 455,304,501 208,387,717 485,734,556 501,012,865 485,734,556 501,012,865
Interest on treasury bonds 2,999,612,074 1,559,232,144 2,999,612,074 1,559,232,144 Total cards fees and charges (net of direct expenses) 677,619,620 668,091,727 677,619,620 668,091,727
Gain from government securities* 24.2 1,777,511,802 696,506,501 1,777,511,802 696,506,501
(Loss) on revaluation of treasury securities (HFT)* (378,570,820) (161,634,079) (378,570,820) (161,634,079) 25.2 Exchange gain (net of exchange loss)
Net Gain/(Loss) on sale of quoted securities 77,101,424 48,719,019 39,171,379 52,247,232 Gain on exchange trading (other than cards business) 2,807,360,806 7,447,457,354 2,777,871,136 7,416,310,509
5,101,545,522 2,699,084,429 5,048,674,967 2,751,634,005 Less: Exchange loss 2,086,248,727 6,340,396,628 2,055,571,129 6,311,158,973
*As per instruction/circular of Bangladesh Bank vide DOS circular letter no 05 dated 26 May 2008 and subsequent clarifications on 721,112,079 1,107,060,726 722,300,007 1,105,151,536
28 January 2009.
Exchange gain from cards business 75,533,318 158,531,281 75,533,318 158,531,281
24.1 Dividend Income Less: Exchange loss 27,564,849 50,579,316 27,564,849 50,579,316
Eastern bank limited (Parent) 137,113,749 211,962,117 47,968,469 107,951,965 47,968,469 107,951,965
EBL securities limited 53,587,216 39,959,282 Total 769,080,548 1,215,012,691 770,268,476 1,213,103,501
EBL investments limited 2,212,803 3,420,445
EBL asset management limited 1,306,813 1,095,323
194,220,581 256,437,166
Less: Elimination-Dividend from EBL finance (HK) limited (42,166,322) (93,496,413)
152,054,258 162,940,753

254 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 255
 Financial Reports
Amount in BDT Amount in BDT
Consolidated Bank Consolidated Bank
Notes Notes
2020 2019 2020 2019 2020 2019 2020 2019
25.3 Brokerage commission 27.2 Contribution to superannuation fund and current service cost (bank only):
Brokerage commission (DSE and CSE) 178,464,076 203,499,748 Contribution to superannuation fund is made as per actuarial valuation of the fund. Valuation is carried out on 'Projected unit credit
Brokerage commission (Dealer) 1,103,787 1,565,698 method' as per International Accounting Standard (IAS) 19 'Employee Benefits' to determine the present value of obligations and
Settlement fees & commission 8,166,370 22,542,993 the related current service cost and, where applicable past service cost. The amount of obligation is determined on the occurence
Management & trustee fees 19,800,741 27,521,923 of certain pre-defined events which is related with employee rank (not salary) and certain threshold level of service being reached
207,534,974 255,130,362 i.e. survival or withdrawal probabilities.
Less: Direct expenses The latest valuation was carried out on 30 September 2020 to be effective from 01 October 2020. The actuary recommended a
Laga and Howla charges 15,229,962 18,194,970 contribution of at least BDT 8.80 million per annum into the fund until the next actuarial review is carried out.
CDBL charges 11,062,824 8,407,439 Current Service Cost:
26,292,786 26,602,409
In 2020, the Bank charged BDT 8.8 million to Profit & Loss Account as Current Service Cost and there was no past service cost for
181,242,188 228,527,953
plan amendments to be charged as per actuarial recommendation. However, the Bank released BDT 12.42 million in Profit & Loss
26 Other operating income Account during this year, as fair value of plan assets at the end of prior peirod was higher than the defined benefit obligation which
was mainly created due to changes in actuarial assumptions.
Rebate earnings 146,724,535 102,463,009 146,724,535 102,463,009
Postage charges recovered 24,100,520 36,017,962 12,411,059 16,574,457 28 Rent, taxes, insurance, utilities etc.
Swift charges recovered 57,317,277 62,506,557 57,317,277 62,506,557 Rents, rates and taxes - Premises & Equipments* 177,173,855 339,661,460 173,662,943 330,179,356
Service charges (others) 7,210,151 9,722,757 7,210,151 9,722,757 Insurance premium** 157,256,995 136,661,262 156,523,852 135,891,180
Locker rent 19,407,025 18,652,125 19,407,025 18,652,125 Utilities (except telecommunication) 105,616,862 139,573,451 99,819,050 131,974,184
Gain on disposal of fixed assets 2,668,637 19,164,696 2,540,021 19,164,696 440,047,713 615,896,173 430,005,846 598,044,720
Other income * 88,457,103 9,859,706 86,071,047 9,729,086
345,885,248 258,386,812 331,681,115 238,812,687 *As per IFRS 16 'Leases', the Bank recorded interest expense on lease liabilities (note 23) and depreciation on RoU assets (note 35)
instead of charging rental expense (excluding VAT) of BDT 381.25 million in 2020 (and BDT 190.40 million in 2019) against rented
*The lion share of ‘Other Income’ amounting BDT 80.52 million has been shifted from lapse and forfeiture account of EBL Employees premises treated as lease assets and shown in the balance sheet as RoU assets under note 8.
Provident Fund (EEPF). This amount comprises of three components: i. balance of lapse & forfeiture account of EEPF as on 31 Dec **The major portion of insurance premium (BDT 142.49 million in 2020 and BDT 123.56 million in 2019) was paid to Bangladesh Bank
2019: BDT 34.59 million; ii. refunded from the members of the fund which were distributed during the year 2015 to 2019: BDT as per DOS circular letter no 1 dated 10 January 2007 and Circular no. DID-02/2012 dated 02 October 2012 in exchange of coverage of
42 million; iii. lapsed and forfeited during the year 2020: 3.93 million. This amount has been recognised as other income as per deposits up to certain threshold in case the bank goes bankrupt. The rest of the premium covers Property, Cash security etc.
the notification no.179/FRC/FRM/ Notification /2020/2 dated 07 July 2020 issued by Financial Reporting Council (FRC). Lapse &
forfeiture amount of BDT 1.57 million of subsidiaries are also included in consolidated ‘other income’. 29 Legal & professional expenses
Commission, fees and charges received against export and export related services are VAT exempted as per service code S056 of Professional fees (Consultancy, advisory, certification, etc.) 11,671,868 21,667,070 10,626,072 20,774,588
SRO 189-AIN/2019/46-MUSHAK, dated 13 June 2019. Professional fees (Loan recovery & Contact point verification) 759,750 1,593,975 759,750 1,593,975
27 Salary & allowances (excluding those of MD) Lawyers' professional fees 21,638,282 34,854,430 21,638,282 34,854,430
Other legal expenses (Court expense, auction notice, etc.) 30,829,547 59,900,515 30,829,547 59,900,515
Basic salary 1,389,172,884 1,305,884,665 1,305,222,867 1,223,555,460
64,899,448 118,015,990 63,853,652 117,123,508
Other salary & allowances 1,621,701,245 1,720,743,544 1,570,187,981 1,671,616,727
Festival bonus 267,257,878 208,126,649 260,632,940 201,722,158 30 Postage, stamp, telecommunication etc.
Incentive bonus 345,270,038 301,935,525 341,247,312 292,830,367
Telephone - office (including SMS service) 55,898,021 50,027,183 55,661,025 49,724,352
Contribution to provident fund 128,612,657 120,924,841 125,256,609 116,387,937
Network link, Internet, swift and DR maintenance cost 55,118,869 57,554,803 53,428,483 54,901,975
Current Service Cost - Gratuity Fund 324,900,396 - 324,659,509 -
Postage and courier charges 27,511,253 36,970,778 22,238,238 31,572,474
Current Service Cost - Superannuation Fund (3,615,250) - (3,615,250) -
Stamp and court fees 439,867 770,076 439,867 770,075
Contribution to gratuity fund 27.1 - 229,257,635 - 224,567,067
138,968,011 145,322,840 131,767,614 136,968,876
Contribution to superannuation fund 27.2 - 8,400,000 - 8,400,000
4,073,299,849 3,895,272,859 3,923,591,968 3,739,079,717 31 Stationery, printing, advertisement, business promotion etc.
*The number of regular employees engaged for the whole year or part thereof who received a total remuneration of BDT 36,000 Printing and stationery 61,781,205 77,888,361 60,287,697 75,889,945
p.a. or above were 1,968 at the end of December 2020 and 1,877 at the end of December 2019. Advertisement (Print & electronic media, POC materials etc.) 41,307,423 48,944,138 38,745,592 48,707,228
27.1 Contribution to gratuity fund and current service cost (bank only): Business promotional expenses for Skylounge 147,814,367 168,295,684 147,814,367 168,295,684
Business promotional expenses for Priority and others 45,934,624 63,207,419 45,165,046 60,580,222
Contribution to gratuity fund is made as per actuarial valuation of the fund. Valuation is carried out on 'Projected unit credit method'
as recommended by International Accounting Standard (IAS) 19 'Employee Benefits'. Under this method the valuation is done 296,837,619 358,335,602 292,012,702 353,473,079
considering both 'future service cost' which an employee shall obtain in normal course of service and 'past service cost' which is 32 Managing Director's salary and allowances (Bank only)
the difference between assets built up from past contributions and accrued liabilities (i.e. benefits earned by members as a result
Basic salary 16,753,065 15,093,548 16,753,065 15,093,548
of service as of valuation date).
Allowances 4,200,000 4,595,162 4,200,000 4,595,162
Bonus (Festival and Incentive) 3,700,000 3,420,000 3,700,000 3,420,000
The latest valuation was carried out on 30 September 2020 to be effective from 01 October 2020. Actuary recommended that the
Bank's contribution to provident fund 1,675,307 1,509,355 1,675,307 1,509,355
bank will continue to contribute at least 18.3% of basic salary into the fund each year until the next actuarial review is done. The 26,328,372 24,618,065 26,328,372 24,618,065
bank is maintaining recommended contribution from the effective date.
33 Directors' fees and expenses
Current Service Cost:
Meeting attendance fees 2,486,800 2,333,302 2,024,800 2,145,802
As recommended by actuary, the Bank charged BDT 142.90 million to Profit & Loss Account in 2020 as Current Service Cost and BDT
Other expenses (refreshment, conveyance etc.) 692,706 2,810,727 692,706 2,810,727
181.76 million as past deficit which originated mainly due to change in actuarial assumptions while assessing present value of past 3,179,506 5,144,029 2,717,506 4,956,529
service obligation.
Each director of the Bank was paid for BDT 8,000 as per BRPD circular letter no. 11 dated 4 October 2015 per board or board
committee meeting attended in 2020.

256 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 257
 Financial Reports
Amount in BDT Amount in BDT
Consolidated Bank Consolidated Bank
Notes Notes
2020 2019 2020 2019 2020 2019 2020 2019
34 Audit Fees 37 Other provisions
Statutory and corporate governance audit fees 2,314,234 2,186,592 1,072,926 1,232,345 Provision charged for protested bill & others 13.6 45,769,498 92,857,498 45,769,498 92,857,498
VAT on audit fees (i.e. 15%) 158,380 157,500 129,130 135,000 Provision for rebate to good borrowers 13.7 - 10,000,000 - 10,000,000
2,472,615 2,344,092 1,202,057 1,367,345 Provision for startup fund 37.1 76,922,811 - 76,922,811 -
Provision on revaluation of equity securities 13.8 (224,182,900) 620,462,814 (214,354,004) 539,646,044
Audit fees include BDT 212,057 incurred for EBL Yangon representative office, Myanmar. (101,490,592) 723,320,312 (91,661,696) 642,503,542
35 Repairs, maintenance and depreciation 37.1 As per BB SMESPD circular no. 04 dated 29 March 2021, 1% of operating profit-2020 has been kept as startup fund under other liability.
Depreciation: (Annexure 'A' ) 38 Deferred tax expense/(income) (net)
Building and floor spaces 35,198,891 35,198,889 35,198,891 35,198,889
Deferred tax (income) 9.10.b (175,974,151) (693,921,966) (78,729,409) (693,921,966)
Machinery and equipments 49,445,223 57,163,139 48,529,949 55,600,116
Deferred tax expense 9.10.c 26,396,412 29,460,005 26,277,672 29,460,005
Computer and network equipments 85,310,584 62,577,219 83,241,163 59,778,850
(149,577,739) (664,461,960) (52,451,737) (664,461,960)
Digital banking equipments 16,737,217 18,041,302 16,737,217 18,041,302
Electromechanical equipments 17,182,622 17,127,780 17,182,622 17,127,780 39 Earnings per share
Vehicles 34,434,897 30,289,208 29,886,128 25,577,427 Earnings per share (EPS) has been computed by dividing the profit after tax (PAT) by the weighted average number of ordinary
Furniture and fixtures 53,627,435 54,366,234 49,851,838 51,381,764 shares outstanding as on 31 December 2020 as per IAS- 33 "Earnings Per Share". Diluted EPS was not required to calculate as there
Software 61,532,999 61,003,027 61,344,620 60,713,714 was no dilution possibilities during the year.
Right of use assets (Lease assets) 369,212,368 190,070,665 344,835,805 170,517,727
Consolidated Bank
722,682,236 525,837,464 686,808,233 493,937,570
2020 2019 2020 2019
Repairs, maintenance and spare parts
Machinery and equipments 51,481,657 56,822,632 51,249,333 56,370,486 Number of shares before bonus share issued 811,799,548 811,799,548 811,799,548 811,799,548
Vehicles 7,118,158 11,895,521 6,313,777 11,046,494 Bonus shares issued - - - -
Furniture and fixtures 7,559,220 11,084,978 7,541,690 10,834,173 A. Weighted average number of ordinary shares outstanding : 811,799,548 811,799,548 811,799,548 811,799,548
Rented premises- general 56,634,712 54,280,559 54,643,304 51,766,711 B. Earnings Per Share (EPS) :
Rented premises-electricity & lighting 10,090,694 11,208,642 9,802,824 11,100,642 Net profit attributable to the shareholders of EBL 4,180,381,016 3,990,393,333 4,102,563,055 4,008,142,126
Computer and network equipments 7,767,380 7,455,524 7,638,244 7,455,524 Number of ordinary shares outstanding : 811,799,548 811,799,548 811,799,548 811,799,548
Software maintenance 147,381,781 103,012,778 146,171,094 97,983,562 Earnings per share (EPS) 5.15 4.92 5.05 4.94
288,033,602 255,760,634 283,360,266 246,557,592
40 Changes in other assets (Cash flow item)
Total 1,010,715,838 781,598,098 970,168,499 740,495,162
Opening Balance:
Due to change in threshold of low value asset from BDT 20 million to BDT 1 million in January 2020 for recording lease assets under TREC of DSE (in exchange of membership license) 595,337,112 595,337,112 - -
IFRS 16 and adding three new contracts, the value of RoU assets increased by BDT 641.22 million and so the depreciation on RoU TREC of CSE (in exchange of membership license) 245,379,755 245,379,755 - -
assets increased significantly in 2020. Receivable from subsidiaries - - 3,527,436 6,794,437
36 Other expenses Stock of stationeries 15,097,285 17,130,137 15,097,285 17,130,137
Stamps on hand 5,600,093 5,628,561 5,582,843 5,588,511
Business travelling and conveyance 32,088,502 63,808,513 31,077,544 61,485,295
Advance to staff for expenses 301,986 3,474,945 252,950 3,356,626
Bank charges 43,899,816 66,032,912 41,857,062 64,160,720
Security deposits-govt. agencies 11,637,804 11,596,802 7,359,364 7,319,364
Cards production cost 32,804,797 18,461,667 32,804,797 18,461,667
Interest and dividend receivables 964,781,342 616,646,229 1,046,980,398 698,189,196
POS acquiring expenses/charges 1,400,000 19,651,978 1,400,000 19,651,978
Sundry receivables 755,995,261 465,640,214 754,902,561 450,440,214
CSR expenses (including donation) 184,932,469 151,223,386 184,932,469 151,169,045
Advance rent 216,938,429 334,548,100 216,800,826 331,998,090
Fees and subscriptions 5,644,295 4,760,809 4,754,678 3,690,719
Prepayments and advance to vendors 161,824,574 94,372,970 158,371,686 93,433,386
Recruitment and training expenses 8,641,312 21,018,801 8,543,092 19,980,355
Deferred tax assets (net of liabilities) 1,875,161,824 1,210,699,864 1,875,161,824 1,210,699,864
Entertainment and recreation 22,075,311 44,782,171 19,313,091 38,398,057
Other assets of subsidiaries 21,833,460 31,186,399 - -
Office securities (Cash carrying, office premises etc.) 150,326,518 135,882,109 149,481,718 135,156,689
4,869,888,926 3,631,641,088 4,084,037,173 2,824,949,826
Business and internal events 6,806,266 17,595,324 6,806,266 17,595,324
Reward and recognition 40,482,724 11,926,995 40,482,724 11,926,995 Closing Balance:
Sales and collection commision (DST, Agency, Dealers) 59,008,466 105,030,129 59,008,466 105,030,129 Investment in DSE (TREC and Shares of DSE ) 595,337,112 595,337,112 - -
Expense for EBL Sub-ordinated bond 8,304,375 6,461,299 8,304,375 6,461,299 Investment in CSE (TREC and Shares of CSE ) 245,379,755 245,379,755 - -
Other operating expenses (uniform, freight, books, shares etc) 13,769,996 18,150,932 11,061,913 18,116,584 Receivable from subsidiaries - - 3,205,113 3,527,436
Other expenses of subsidiaries 36.1 4,625,923 10,526,387 - - Stock of stationeries 12,191,604 15,097,285 12,191,604 15,097,285
614,810,771 695,313,413 599,828,196 671,284,857 Stamps on hand 4,791,068 5,600,093 4,781,918 5,582,843
Advance to staff for expenses 40,000 301,986 40,000 252,950
36.1 Other expenses of subsidiaries Security deposits-govt. agencies 15,992,392 11,637,804 7,524,224 7,359,364
Registration, renewal & IPO expense 345,978 436,911 Interest and dividend receivables 1,343,478,795 964,781,342 1,364,453,355 1,046,980,398
Guarantee premium 3,498,517 9,609,688 Sundry receivables 1,254,018,166 755,995,261 1,238,042,671 754,902,561
Other administration expenses 781,428 479,788 Advance rent 44,416,462 216,938,429 44,179,987 216,800,826
4,625,923 10,526,387 Prepayments and advance to vendors 207,308,251 161,824,574 203,703,188 158,371,686
Deferred tax assets (net of liabilities) 2,150,731,502 1,875,161,824 2,053,605,499 1,875,161,824
Expenses incurred by the bank shown in these financial statements are inclusive of VAT where applicable as per VAT and Other assets of subsidiaries 42,831,627 21,833,460 - -
Supplementary Duty Act 2012 and rules 2016. 5,916,516,734 4,869,888,926 4,931,727,559 4,084,037,174
Adjustment for other non-cash items 352,140,048 327,688,257 289,298,839 391,213,618
Net cash changes in other assets (694,487,760) (910,559,581) (558,391,547) (867,873,731)

258 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 259
 Amount in BDT
Annexure-A

3,986,656,786
1,216,922,090
120,262,653
71,334,007
66,623,389
305,060,169

268,338,656

66,951,986
307,076,459
1,076,400,595

225,271,226
7,710,898,017

7,349,051,230

Annexure-A1

Financial Reports
Amount in BDT
Amount in BDT

Buy Back Zara Zaman Technology Ltd.

Buy Back Net World Technology Ltd.
Al-Amin Enterprise
M/S Morium Trading
M/S Sumon Enterprise
value at 31
December
Net book

Buyer/ Highest bidder

Consolidated Bank

2020
Notes
2020 2019 2020 2019
41 Changes in other liabilities (Cash flow items)
Opening balances
Privileged creditors 594,132,711 483,476,704 594,132,711 483,476,704

-
191,033,432
-
589,272,305
187,530,531
38,592,347

640,533,758

113,979,618
372,557,383
515,353,535

437,178,738
(60,531,179) 3,086,031,648

493,937,567 (103,217,028) 2,459,754,590

31 December
Acquirer liabilities 954,182,205 733,163,686 954,182,205 733,163,686

Balance at

2020
Sundry creditors 75,526,803 47,280,130 75,526,803 47,280,130
Security deposit 6,067,856 15,472,476 6,067,856 15,472,476

Accumulated Depreciation & Amortization

Current tax liability/(assets) 2,778,993,401 1,515,399,023 2,714,070,821 1,485,181,664

128,484 Open Tender

443,611 Open Tender
1,582,964 Open Tender
Provision for loans, advances and OBS
9,188,404,604 7,252,795,569 9,111,530,722 7,175,921,693

Disposal
Mode of
-
-
-
exposures (excluding OBO)

(11,406,601)
(27,276,661)
-

(849,244)

-
(20,998,673)
-

-
On disposals
during the
Provision for loans, advances and OBS exposures (OBO) 246,897,402 232,712,071 246,897,402 232,712,071

year
Interest suspense account 1,823,520,136 1,348,450,204 1,653,910,317 1,178,840,387
Provision for protested bill & others 145,373,498 52,516,000 145,373,498 52,516,000

(27)
384,989

2,540,021
Provision for non-banking assets 12,345,330 12,345,330 12,345,330 12,345,330

Tax & VAT Gain/(Loss)

Provision for rebate to good borrowers 46,100,257 36,100,257 46,100,257 36,100,257

Balance at 31 Balance on 01 Charge for the

-
35,198,891
-
48,529,945
16,737,218
17,182,622

83,241,167

29,886,129
49,851,837
344,835,809

61,344,619
686,808,236
Provision for loss on revaluation of shares (net) 1,067,654,623 447,191,812 901,313,537 361,667,493
Advance interest/commission received 46,060,675 37,972,162 36,379,504 25,361,010

year
Expenses payable 512,872,100 480,297,229 490,287,580 446,296,976

-
-
33,349
58,372
296,926
388,647
Interest payable on borrowing including OBO 545,663,660 529,538,377 544,808,104 526,761,631
Miscellaneous liabilities 477,122,524 319,207,757 469,321,632 310,788,222

-
155,834,541
-
552,148,961
198,069,974
21,409,725

558,141,835

84,093,489
343,704,220
170,517,727

375,834,119
9,808,805,820 1,132,692,492 (144,568,648) 10,796,929,664 2,459,754,590

9,808,805,820 2,069,034,049
Lease liabilities (present value of lease payments) 622,832,947 - 608,816,783 -

December 2020 January 2020

Other liabilities of subsidiaries 267,012,538 359,007,358 - -

1
385,000
286,800
502,000
2,468,957
3,642,758
19,410,763,269 13,902,926,145 18,611,065,061 13,123,885,730

Sales Value
Closing balances
Privileged creditors 696,520,198 594,132,711 696,520,198 594,132,711
Acquirer liabilities 1,308,342,901 954,182,205 1,308,342,901 954,182,205

3,986,656,786
1,407,955,522
120,262,653
660,606,312
254,153,920
343,652,516

908,872,414

180,931,604
679,633,842
1,591,754,131

662,449,964
Sundry creditors 114,465,841 75,526,803 114,465,841 75,526,803

28
11
124,967
17
589,067
714,090
Security deposit 6,727,979 6,067,856 6,727,979 6,067,856

Net book
Current tax liability/(assets) 1,794,622,024 2,778,993,401 1,771,534,659 2,714,070,821

value
Provision for loans, advances and OBS
10,637,911,400 9,188,404,604 10,397,593,697 9,111,530,722
exposures (excluding OBO)
Provision for loans, advances and OBS exposures (OBO) 253,985,199 246,897,402 253,985,199 246,897,402

-
-
(83,323,380)
(11,406,703)
(27,276,700)
-

(849,261)

-
(21,712,604)
-

8,705,651,216 1,210,126,043 (106,971,439)

during the

Schedule of Fixed Assets Disposals

Disposals
Special general provision -Covid 19 602,352,869 - 602,352,869 -

19,411,172
7,865,489
1,442,262
849,243
19,556,307
49,124,473
Accumulated
depreciation
year
Startup fund 76,922,811 - 76,922,811 -
Interest suspense account 2,425,163,343 1,823,520,136 2,233,375,188 1,653,910,317
Provision for protested bill & others 191,142,995 145,373,498 191,142,995 145,373,498

Cost
Provision for non-banking assets 12,345,330 12,345,330 12,345,330 12,345,330

-
-
127,871,765
27,457,021
30,015,000
1,096,841

184,826,018

-
24,633,258
641,216,174

95,576,415
during the year
Provision for rebate to good borrowers 46,100,257 46,100,257 46,100,257 46,100,257

Additions
Provision for loss on revaluation of shares (net) 843,471,722 1,067,654,623 686,959,533 901,313,537

19,411,200
7,865,500
1,567,229
849,260
20,145,374
49,838,563
Advance interest/commission received 59,169,628 46,060,675 55,768,640 36,379,504

Cost
Schedule of Fixed Assets
Expenses payable 533,270,894 512,872,100 501,654,571 490,287,580
Interest payable on borrowing including OBO 296,900,882 545,663,660 296,863,401 544,808,104
Miscellaneous liabilities 990,877,633 477,122,524 850,648,682 469,321,632

3,986,656,786
1,407,955,522
75,714,268
644,555,994
251,415,620
342,555,675

724,895,657

180,931,604
676,713,188
950,537,957

566,873,549
Balance on 01
January 2020
Lease liabilities (present value of lease payments) 893,842,167 622,832,947 866,681,805 608,816,783

Computer & Network Equipment

Net Benefit Obligation 422,781,132 - 422,781,132 -
Other liabilities of subsidiaries 352,816,687 267,012,538 - -

Digital Banking Equipment

Digital Banking Equipment
22,482,811,081 19,410,763,269 21,315,844,876 18,611,065,064

Grand Total: Gain/(Loss)

Adjustment for other non cash items (5,588,712) (109,362,574) (3,243,921) (113,493,320)

Particulars

Furniture & Fixtures

Furniture & Fixtures

Net cash changes in other liabilities 3,066,459,100 5,398,474,549 2,701,535,895 5,373,686,014

Right of use assets (Lease assets)

Electromechanical equipments
42 Events after the reporting period

as at 31 December 2020

Machinery and equipments

Digital Banking Equipment
The Board of Directors of Eastern Bank Limited recommended 35% dividend (17.5 % cash and 17.5 % bonus share) in the board meeting

Building and floor spaces

Eastern Bank Limited

Capital work in progress

Eastern Bank Limited

held on 12 April 2021 for the year 2020. Eligible shareholders (who hold EBL shares on the record date i. e. 05 May 2021) will be entitled

Computer and network

Furniture and fixtures

At 31 December 2020

At 31 December 2019
to get this dividend subject to shareholders' approval in AGM. The amount of recommended dividend is BDT 2,841,298,415 .

for the year 2020

Intangible assets:
Tangible assets:

equipments
Particulars

05.05.2020
24.08.2020
17.09.2020
21.09.2020
03.12.2020
Date
Software
Vehicles
Land
260 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 261
Eastern Bank Limited and its subsidiaries Annexure-B Eastern Bank Limited and its subsidiaries Annexure-B1

Financial Reports
Balance with other Banks and Borrowing from Banks and
Financial Institutions (Consolidated) Financial Institutions (Consolidated)
as at 31 December 2020 as at 31 December 2020
Outside Bangladesh - (note-4.2) Outside Bangladesh - (note-11.2)

2020 2019 2020 2019

Name of Banks and FIs Currency Foreign Exch. Amount in Foreign Exch. Amount in Name of Banks and FIs Currency Foreign Exch. Amount in Foreign Exch. Amount in
Currency rate BDT Currency rate BDT Currency rate BDT Currency rate BDT
In demand deposit account (non interest bearing) with : Abu Dhabi Commercial Bank, Dubai USD - - - 49,967,201 84.90 4,242,215,372
AB Bank Limited,India USD 64,024 84.80 5,429,341 15,129 84.90 1,284,487 Asian Development Bank (ADB) USD 10,588,235 84.80 897,893,999 15,294,118 84.90 1,298,470,588
Al-Rajhi Bank, KSA SAR 153,598 22.60 3,470,999 38,020 22.64 860,581 Bank of Montreal USD - - - 5,874,020 84.90 498,704,311
Bank of Bhutan, Bhutan USD 1,904 84.80 161,459 58,729 84.90 4,986,090 Citibank NA USD 2,483,397 84.80 210,594,830 - - -
Bank of China CNY 231,392 12.99 3,004,949 86,925 12.14 1,054,971 COMMERZBANK AG, Germany USD - - - 25,631,861 84.90 2,176,144,957
Bank Toykyo Mitshubishi, Japan JPY 3,021,943 0.82 2,474,669 3,078,803 0.78 2,389,151 DBS Bank, Singapore USD - - - 39,274,347 84.90 3,334,392,035
Citibank N. A., USA USD - - - 13,597,354 84.90 1,154,415,375 Deutsche Investitions-und
USD 56,000,000 84.80 4,748,861,600 32,000,000 84.90 2,716,800,000
Commerz Bank AG, Germany EURO 330,683 103.89 34,354,632 313,504 94.90 29,751,925 Entwicklungsgesellschaft MBH (DEG)
Habib American Bank, USA USD 217,998 84.80 18,486,436 435,568.55 84.90 36,979,769.90 HDFC Bank, India USD 10,000,000 84.80 848,011,000 19,350,000 84.90 1,642,815,000
HDFC Bank Limited, Hongkong USD 509,429 84.80 43,200,115 201,894.44 84.90 17,140,838.23 ICICI Bank, India USD - - - 13,441,380 84.90 1,141,173,157
HDFC Bank Limited, Hongkong HKD 133,997 10.97 1,470,001 17,431.91 10.93 190,471.51 International Finance Corporation (IFC) USD - - - 1,603,820 84.90 136,164,301
ICICI Bank Limited, Hongkong HKD 43,176 10.97 473,660 590,407 10.93 6,451,141 International Islamic Trade Finance
USD - - - 2,062,544 84.90 175,110,027
Corporation (ITFC), KSA
ICICI Bank Limited, Hongkong USD 1,140,061 84.80 96,678,389 3,660,435 84.90 310,770,891
JP Morgan Chase, Singapore USD 16,120,000 84.80 1,366,993,732 - - -
ICICI Bank, India USD 761,115 84.80 64,543,382 652,771 84.90 55,420,253
JP Morgan AG, USA USD 1,431,112 84.80 121,359,906 - - -
JP Morgan Chase Bank N.A., UK GBP 157,303 114.51 18,012,234 31,917 111.04 3,544,065
Korea Development Bank, Singapore USD 32,983,629 84.80 2,797,048,041 36,244,042 84.90 3,077,119,161
JP Morgan Chase Bank N.A., USA USD - - - 6,625,295 84.90 562,487,529
National Bank of Ras Al-Khaimah USD - - - 14,813,931 84.90 1,257,702,722
JP Morgan Chase Bank NA, Australia AUD 23,856 64.51 1,538,908 20,569 59.25 1,218,748
OEEB USD 20,000,000 84.80 1,696,022,000 - - -
JP Morgan Chase Bank, Germany EURO 404,915.21 103.89 42,066,560 2,681.95 94.90 254,520.27
Opec fund for International
Mashreq Bank, UAE USD 9,140 84.80 775,084 13,115 84.90 1,113,429 USD 25,000,000 84.80 2,120,027,500 25,000,000 84.90 2,122,500,000
Development
Mashreqbank, USA USD 248,719 84.80 21,091,674 9,184,127 84.90 779,732,371 PROPARCO, France USD 5,454,546 84.80 462,551,458 9,090,909 84.90 771,818,184
MCB Bank Limited USD - - - 2,012,559 84.90 170,866,269 Standard Chartered Bank, USA USD 7,851,684 84.80 665,831,473 - - -
Nepal Bangladesh Bank Ltd., Nepal USD 44,105 84.80 3,740,149 125,907 84.90 10,689,501 Standard Chartered Bank, Singapore USD 151,861 84.80 12,877,943 26,619,698 84.90 2,260,012,361
NIB Bank Limited, Pakistan USD 793,573.05 84.80 67,295,868 - - - Wachovia Bank NA, USA USD 172,997 84.80 14,670,310 - - -
Nordea Bank, Norway NOK 43,877 9.84 431,823 80,635 9.57 771,861 Wells Fargo, USA USD 17,255,145 84.80 1,463,255,289 - - -
Standard Chartered Bank, USA - OBU USD 2,031,452 84.80 172,269,373 7,719,789 84.90 655,410,118 Total 17,425,999,081 26,851,142,174
Standard Chartered Bank, Srilanka USD 41,751 84.80 3,540,554 27,318 84.90 2,319,292
Standard Chartered Bank, Germany EURO 85,107 103.89 8,841,771 111,845 94.90 10,614,112
Standard Chartered Bank, India USD 548,411 84.80 46,505,854 1,042,252 84.90 88,487,172
Standard Chartered Bank, USA USD - - - 3,240,557 84.94 275,266,474
Standard Chartered Bank, Singapore SGD 28,966 63.91 1,851,198 43,812 62.82 2,752,250
Wells Fargo Bank, USA USD - - - 2,548,480 84.90 216,365,960
Zurcher Kantonal Bank, Zurich,
CHF 27,351 95.90 2,622,841 26,817 87.09 2,335,618
Switzerland
Total 664,331,925 4,405,925,233

262 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 263
Related party disclosures Annexure-C

Financial Reports
Name of the firms/companies in which Percentage
Status with directors of the bank are interested as of holding/
Two parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise Name of Directors Status
the Bank proprietor, partner, director, managing agent, interest in the
significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they guarantor, employee etc. concern
are subject to common control or common significant influence Related party informations are given below.
Salina Ali Director Unique Group of Companies Ltd. Chairperson 12.25%
Unique Hotel & Resorts Ltd. Chairperson 5.71%
I) Directors' interest in different entities
Borak Real Estate (Pvt.) Ltd. Chairperson 12.00%
Unique Ceramic Ind. (Pvt.) Ltd. Chairperson 12.25%
Name of the firms/companies in which Percentage Borak Travels (Pvt.) Ltd. Chairperson 50.00%
Status with directors of the bank are interested as of holding/ Unique Eastern (Pvt.) Ltd. Chairperson 10.42%
Name of Directors Status
the Bank proprietor, partner, director, managing agent, interest in the
Unique Vocational Training Center Ltd. Chairperson 12.00%
guarantor, employee etc. concern
Borak Shipping Ltd. Chairperson 7.50%
Md. Showkat Ali Chowdhury Chairman Need Fashion Wear & Textile Ltd. Chairman 35.00% Unique Property Development Ltd. Chairperson 12.00%
Chittagong Properties Holding Ltd. Chairman 50.00% Sonargaon Economic Zone Ltd. Chairperson 5.00%
Finlay (International) Ltd. Chairman 81.00% Tribeni International Ltd. Chairperson 20.00%
KAPS Bangladesh Ltd. Chairman 12.50% Arial Dairy and Agro Industries Ltd. Chairperson 13.00%
JF (Bangladesh) Ltd. Chairman 81.00% Hansa Management Ltd. Chairperson 12.50%
Port Link Housing Ltd. Chairman 50.00% Unique Share Management Ltd. Managing Director 12.00%
Finlay Properties Ltd. Chairman 55.00% Unique Shakti Ltd. Managing Director 20.00%
Legend Property Development Ltd. Managing Director 50.00% Crescent Commercial Center Ltd. Managing Director 20.00%
Z.N. Enterprise Ltd. Managing Director 50.00% Gulshan Clinic Ltd. Director 25.00%
Z.S. Holding Ltd. Managing Director 50.00% Borak Zahir Company Ltd. Director 20.00%
Zaran Off Dock Ltd. Managing Director 30.00% Unique Meghnaghat Power Ltd. Director 0.01%
Namreen Enterprise Ltd. Managing Director 50.00% Anis Ahmed Director MGH Logistics Pvt. Limited Managing Director 95.00%
Namreen Power Ltd. Managing Director 50.00% MGH Holdings Limited Managing Director 80.00%
ABC Steel Enterprise Ltd. Managing Director 80.00% MGH Restaurants (Pvt.) Limited Managing Director 95.00%
S.L. Steels Ltd. Managing Director 50.00% MGH Healthcare Limited Managing Director 99.00%
Unique Refineries Ltd. Managing Director 55.00% Galileo Bangladesh Limited Managing Director 80.00%
Port Link Logistics Centre Ltd. Managing Director 25.00% One World Aviation Limited Managing Director 67.00%
South Asia Securities Ltd. Director 7.10% RAS Holidays Limited Managing Director 95.00%
Peninsula Housing & Development Ltd. Director 36.00% MGH Global Forwarding Limited Managing Director 97.00%
Peninsular Shipping Services Ltd. Director 25.00% Transmarine Logistics Limited Managing Director 75.00%
Consolidated Tea & Plantation Ltd. Director 6.25% Total Transportation Limited Managing Director 100.00%
Consolidated Tea & Lands Co. (BD) Ltd. Director 6.25% Tricon Global Logistics Limited Managing Director 80.00%
Baraoora (Sylhet) Tea Co. (BD) Ltd. Director 6.25% Global Freight Limited Managing Director 97.00%
Eastern Industries Ltd. Director 25.00% International Brands Limited Managing Director 100.00%
Bay Hill Hotel and Ressorts Ltd. Director 40.00% Integrated Transportation Services Limited Managing Director 99.00%
S.N. Corporation Partner 50.00% Emirates Shipping Lines Bangladesh Limited Managing Director 78.00%
M. Ghaziul Haque Director MGH Logistics (Pvt.) Ltd. Chairman 5.00% Radio Foorti Limited Managing Director 95.00%
Portlink Logistics Centre Ltd. Chairman 0.02% Portlink Housing Limited Managing Director 50.00%
Mir Nasir Hossain Director Mir Akther Hossain Ltd. Managing Director 18.00% Portlink Logistics Centre Limited Managing Director 50.00%
Mir Ceramic Ltd. Managing Director 88.00% DC ByPass Ltd. Managing Director 90.00%
Mir Telecom Ltd. Managing Director 32.50% MGH Global Airlines Ltd.(BD. Port management Managing Director 2.00%
Mir Holdings Ltd. Managing Director 50.00% Ser. Ltd)
Mir Pharmaceuticals Ltd. Managing Director 50.00% Peninsular Shipping Services Limited Managing Director 40.00%
Bangla Telecom Ltd. Managing Director 40.00% Obhai Solutions Ltd. Managing Director 30.00%
Coloasia Limited Managing Director 40.00% Jatra. Com Ltd. Managing Director 30.00%
BTS Communications (BD) Limited Managing Director 40.00% Bangladesh Express Co. Ltd. Managing Director 20.00%
MIR LPG Limited Managing Director 40.00% MGX.Com Ltd. Managing Director 95.00%
Mir Communications Ltd. Chairman 40.00% Waadaa Ltd. Managing Director 51.00%
Mir Energy Ltd. Chairman 40.00% Mufakkharul Islam Khasru Director Finlay Properties Ltd. Managing Director 15.00%
Global Fair Communications Ltd. Chairman 40.00% Gazi Md. Shakhawat Hossain Director Purnima Construction Pvt. Ltd. Managing Director 0.099%
Mir Denim Limited Chairman 50.00% Bay Hill Hotel & Resorts Ltd. Representative 40.00%
Agrani Insurance Co. Ltd. Shareholder 3.72% Director
Chaldal Limited Representative 11.20% Unique Hotel and Resorts Ltd Representative 8.14%
Director Director
M.N Poultry Proprietorship 100.00% General Electric Company (BD) Ltd. Director 0.00%
Jupiter Technology Proprietorship 100.00% KJS Banu Director Nil NA NA
Zara Namreen Director Nil NA NA
Ashiq Imran Director Fialka CEO & Principal 100.00%
(Independent Director) Architect
Ali Reza Iftekhar MD & CEO EBL Investments Ltd. Director 0.00003%
EBL Securities Ltd. Director 0.000067%
EBL Finance (HK) Ltd. Director -

264 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 265
 Financial Reports
ii) Significant contracts where Bank is a party & wherein Directors have interest: Nil Transaction Outstanding
Name of the Company/ Related Directors
iii) Shares issued to Directors and Executives without consideration or exercisable at discount: Nil Nature of transactions made in as at
Person of EBL
2020 31-12-2020
iv) Related Party Transactions: Please see Annexure -C1 Md. Showkat Ali Advance rent for EBL ATM at New Market Branch,
Tashmia Ambarin - 9,243,900
v) Lending Policies to Related Parties: Chowdhury Chattogram.
Related parties are allowed Loans and Advances as per General Loan Policy of the Bank. Md. Showkat Ali Rental payment for EBL New Market Branch, ATM Booth
Tashmia Ambarin 8,058,000 -
Chowdhury and Godown at New Market, Chattogram.
vi) Business other than Banking business with any related concern of the Directors as per Section-18(2)
Advance rent for EBL office premisses (for CAD, SAMD &
of the Bank Companies Act 1991: Nil Md. Showkat Ali
Namreen Enterprise Limited ATM Booth) at ZN Tower, Gulshan, Dhaka. (Ground Floor, - 36,278,934
Chowdhury
vii) Investments in the Securities of Directors and their related concern: Nil 1st Floor, 2nd to 6th Floor).
Md. Showkat Ali Rental payment for EBL office premisses at ZN Tower,
Namreen Enterprise Limited 74,558,880 -
Related party transactions Annexure-C1 Chowdhury Gulshan, Dhaka. (Ground Floor, 1st Floor, 2nd to 6th Floor).

Related party transaction is a transfer of resources, services, or obligations between related parties, regardless of whether a price is
charged as per IAS 24. The Bank in normal course of business had transactions with other entities that fall within the definition of
'Related Party' as contained in International Accounting Standards (IAS)-24 (Related party disclosures) and as defined in the BRPD 3 Inter-company balances between EBL and Subsidiaries: Amount in BDT
circular no 14, dated 25 June 2003. Balance as at
Name of subsidiaries Nature of account
The significant related party transactions during the year were as follows: 31-12-2020
1
In special notice deposit (SND) account 97,798,028
EBL Securities Limited
1.a Non-funded facilities: Amount in BDT Short term finance (OD) 1,300,343,932
In current deposit (CD) account 345
Nature of Interest of EBL Investments Limited
Outstanding Outstanding In special notice deposit (SND) account 198,073,048
Name of the Representing the Directors with Nature of Sanctioned Amount
as at as at In nostro account 575,770,684
organization Directors the borrowing firm / Facilities Amount Overdue
01-01-2020 31-12-2020 EBL Finance (HK) Limited Short term finance (OD) 3,985,656,024
individual
Md. Showkat Ali LG- Performance Dividend receivable account 40,590,480
Z. N. Enterprise Ltd. EBL Asset Management Limited In special notice deposit (SND) account 190,752,909
Chowdhury, MD Bond-SME 193,100 192,900 192,900 -
Customer ID-100397
Chairman (Expired)
4 Compensation of key management personnel:
1.b Credit card facilities: Amount in BDT Refer to note : 32

Outstanding as at Outstanding as at
Representing Directors Nature of interest with EBL Approved limit
01-01-2020 31-12-2020 Annexure-D
Mir Nasir Hossain Representing Director 500,000 - -
Md. Showkat Ali Chowdhury
Mohd. Noor Ali
Chairman
Spouse of Director
250,000
500,000
-
-
-
73,110
Disclosure regarding Repo and Reverse Repo
a Disclosure regarding outstanding REPO as on 31 December 2020
2) Transactions relating to procurement, service & rent: Amount in BDT Amount (Cash
Counterparty
Sl Agreement date Reversal date Con 1st Leg cash
Transaction Outstanding name
Name of the Company/ Related Directors consideration)
Nature of transactions made in as at          
Person of EBL
2020 31-12-2020   NIL
Monthly recurring charge for EBL Data Center at
Coloasia Limited Mir Nasir Hossain 2,401,200 - There is no outstanding REPO as on 31 December 2020
Jashore.
Monthly internet connectivity services, Data Center's
BTS Communications (BD) Limited Mir Nasir Hossain Network & LAN Equipment setup of EBL Corporate Head 9,282,558 - Disclosure regarding outstanding Reverse REPO as on 31 December 2020
Office at 100 Gulshan, Dhaka. Amount (Cash
Counterparty
Bangladesh Express Co. Ltd Anis Ahmed Monthly courier service payment. 3,906,202 - Sl Agreement date Reversal date Con 1st Leg cash
name
MGH Restaurants (Pvt.) Ltd. Anis Ahmed Birthday cakes for priority customers. 1,163,845 - consideration)
Promotional expense for EBL Skybanking through FM          
Radio Foorti Ltd. Anis Ahmed 857,521 -   NIL
Radio channel.
Unique Hotel & Resorts Security Deposit against lease rental agreement for ATM booth at There is no outstanding Reverse REPO as on 31 December 2020
Salina Ali - 438,900
Limited The Westin, Gulshan, Dhaka.
Unique Hotel & Resorts Rental payment for ATM booth at The Westin, Gulshan, b. Disclosure regarding overall transaction of REPO and reverse REPO Amount in BDT
Salina Ali 250,800 -
Limited Dhaka. Daily average
Advance rent for EBL ATM at Borak Mehenur, Banani, Min Outstanding Max Outstanding
Borak Real Estate (Pvt) Ltd. Salina Ali 374,400 Particulars outstanding
Dhaka. during the year during the year
during the year
Rental payment for EBL ATM at Borak Mehenur, Banani, Securities sold under REPO
Borak Real Estate (Pvt) Ltd. Salina Ali 520,000 -
Dhaka. With Bangladesh Bank 501,271,880 19,464,105,812 2,411,044,556
The Consolidated Tea and Md. Showkat Ali With other Banks & Financial Institutions 196,014,000 5,099,871,120 1,635,760,279
Supply of monthly refrestment items. 121,843 -
Land Co. (BD) Limited Chowdhury Securities purchased under Reverese REPO
Md. Showkat Ali Advance rent for EBL DST Sales office, ATM Booth, With Bangladesh Bank - - -
Md. Showkat Ali Chowdhury - 4,295,786
Chowdhury Godown, Generator and Garages at Dhanmondi, Dhaka. With other Banks & Financial Institutions 219,804,240 4,930,790,175 506,490,631
Md. Showkat Ali Rental payment for EBL DST Sales office, ATM Booth,
Md. Showkat Ali Chowdhury 6,803,966 -
Chowdhury Godown, Generator and Garages at Dhanmondi, Dhaka.

266 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 267
Eastern Bank Limited Annexure-D1

Financial Reports
Forced
Market
Obtained Sale
Details of NBA obtained u/s 33 (7) & 33(5) SL
Name of the
accounts
Status of
NBA
u/s
33(7)/33(5)
Entitlement
Date
Asset Details Value
(BDT in
Value
(BDT in
Legal Status
Lac)
as of 31-12-2020 Lac)
14 Al Karim Traders, Not U/S 33(7) 1/19/2012 Land Area: 8 decimal 105.00 132.00 Do
Chattogram. recognised Dokkhin Pahartoli,
Forced Double Mooring,
Market
Obtained Sale Chattogram.
Name of the Status of Entitlement Value
SL u/s Asset Details Value Legal Status 15 Bhuiyan (Any & Not U/S 33(7) 6/7/2007 Land Area: 3 Katha, 84.00 105.00 Do
accounts NBA Date (BDT in
33(7)/33(5) (BDT in
Lac) Amy) Corporation, recognised Bhola Samair, Gulshan,
Lac)
1 Mr. Sabbir Recognised U/S 33(7) 5/10/2007 Land Area: 06 decimal, 58.00 72.72 Physical possession is yet to Dhaka Dhaka.
Ahmmed, Dhaka Mouza- Digun, Mirpur, be completed. 16 Ariful Karim, Not U/S 33(7) 11/5/2008 Land Area: 148 decimal 1,258.00 1,480.00 Do
Dhaka. Chittagong recognised with 4 storied building,
2 Innovative Recognised U/S 33(7) 6/7/2007 Land Area: 06.20 22.00 27.30 Do West Nasirabad,
Computer, Dhaka decimal, 4. Sidderganj, Chittagong.
Mouza- Jalkuri, Dhaka. 17 Miner Not U/S 33(7) 3/15/2006 Land Area: 18 decimal, 108.00 248.73 Title Suit No. 1479/08 filed
Land Area: 09.32
International, recognised Jatrabari, Demra, by Md. Abdul Monnaf is
decimal, 5. Sidderganj,
Mouza- Jalkuri, Dhaka. Dhaka Dhaka. pending in the 7th joint
3 M/s Safa Recognised U/S 33(7) 1/18/2005 Land Area: 18 decimal 576.00 720.00 Do district judge court, Dhaka.
Garments, Dhaka Mouza - Vatara, Physical possession is also
Gulshan, Dhaka. yet to be completed.
4 Arshim & Com, Recognised U/S 33(7) 3/27/2007 Land Area: 19.8 336.00 420.00 Do 18 M/s Eastern Not U/S 33(7) 6/11/2012 Land Area: 1.5 decimal 9.60 12.00 A Misc. Case is pending in
Dhaka decimal, Mouza- Lala
Industries, Sylhet recognised Mouza- Sylhet Sadar, the Artha Rin Adalat, Sylhet.
Sarai, Cantonment,
Dhaka. Sylhet.
5 H.M. Younus, Recognised U/S 33(7) 1/10/2008 Land Area: 184 decimal 883.20 1,104.00 Do 19 M/s M.A. Rob, Not U/S 33(7) 11/23/2011 Land Area: 51 decimal 48.96 61.20 On 20.03.2020 Mr. S. M.
Dhaka Mouza- Shibrampur, Khulna recognised at Puratan Kasba, Sazzad & 08 Others filed a
Joydebpur, Gazipur. Jashore Title suit No. 105 of 2020
6 Tri Angle Trading Recognised U/S 33(7) 4/29/2007 Land Area: 33 decimal 16.00 20.00 Do [200 sq yards of land at in the court of 1st Joint
Associate, Dhaka Mouza- Pathalia, Savar, Khulna has been sold District Judge, Jashore for
Dhaka.
at BDT 38.00 lac] declaration of Title of 16.50
7 Stec Fashion Ltd., Recognised U/S 33(7) 1/26/2009 Land Area: 25 decimal. 49.00 60.60 Property partly sold. Physical
Dhaka Mouza- Dokkhin Khan, possession of rest of property decimal of land situated
Dhaka. is yet to be completed. at District- Jashore, P.S-
(5.03 decimal land of Kotwali, Mouza- Old Kashba
Goran Chat bari Mouza, ,S.A Khatian No.907, SA
Mirpur , Dhaka has
Dag No.1009, R.S Khatian
been sold through
auction) No.2637, RS Dag No.1331
8 North American Recognised U/S 33(7) 7/22/2007 Land Area: 6.5 decimal 3.64 4.55 The property was sold at Tk. also for declaration that the
Computing, Mouza- Uttar 50.00 lac out of which Tk. Certificate under section
Dhaka Sona Tang gar, 45.00 lac was received and 33(7) of ARA issued by Artha
Mohammadpur, Dhaka. rest of Tk. 5.00 lac will be
Rin Adalat, Khulna is not
received after completion of
documentation along with binding upon the Plaintiff.
registraton. Plaintiff also filed application
Title suit No.338/19 filed in for injunction. We also
the Court of 3rd Joint District appeared & filed written
Judge, Dhaka for record objection & application for
correction which is pending.
rejection of Plaint. Next
9 M/s Unicorn Recognised U/S 33(7) 11/22/2007 Land Area: 16.5 decimal 3,300.00 4,125.00 Physical possession is yet to
Bangladesh Ltd, Mouza- Bhola Samair, be completed. date fixed on 08.02.2021 for
Dhaka Gulshan, Dhaka. further application hearing.
10 Royel Paper Store, Recognised U/S 33(7) 5/21/2009 Land Area: 106.5 70.00 96.82 Do Execution Case No. 17/1999
Dhaka decimal Mouza- pending in Artha Rin Adalat,
Shrikhondo,
Khulna. Next date has been
Dhanmondi, Dhaka.
fixed on 14-02-2021 for
11 M/s Computer Recognised U/S 33(7) 6/23/2009 Land Area: 14 decimal 17.00 21.21 Do
Bazar Network, Mouza- Nandipara, hearing application.
Dhaka Sabuzbag, Dhaka.
12 M/s Sylcar Plaza, Not U/S 33(7) 5/27/2012 Land Area: 21 & 14 212.80 266.00 Do
Sylhet recognised decimal, Mouza- Sylhet
Sadar, Sylhet.
13 Orion Fishing Not U/S 33(7) 5/13/2012 Land Area: 3.5 & 20.83 1,384.95 1,731.19 Do
Limited, Dhaka recognised katha at Dhaka and
Chattogram.

268 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 269
 Financial Reports
Forced Forced
Market Market
Obtained Sale Obtained Sale
Name of the Status of Entitlement Value Name of the Status of Entitlement Value
SL u/s Asset Details Value Legal Status SL u/s Asset Details Value Legal Status
accounts NBA Date (BDT in accounts NBA Date (BDT in
33(7)/33(5) (BDT in 33(7)/33(5) (BDT in
Lac) Lac)
Lac) Lac)
20 Maruti Enterprise, Not U/S 33(7) 10/3/2012 Land Area: 41.5 519.54 649.42 Writ petition in court no. 30 Hanif Enterprise, Not U/S 33(5) 9/16/2008 Land Area: 1) 15.20 617.80 772.25 Execution Case No. 8/2009
Bagura recognised decimal & 0.37 decimal 8010/2016 has been vacated Dhaka recognised decimal, Mouza is pending in 3rd Artharin
Mouza- Betgari, Bogura and discharged the rule on Tezkunipara, Tejgaon, Court, Dhaka, filed by
sadar. 12-11-2018 in favor of bank. Dhaka. National Bank.
Thereafter, auction purchaser 2) 20 decimal, Mouza Misc. case no. 19/20 filed
filed Civil Petition for Leave Mirerbag, Keranigonj, by 12 persons. Last date
to Appeal No.1560/2019 on Dhaka. was fixed on 31.01.2021 for
the Appealate Division which maintainability hearing. Next
is pending for hearing. date yet to fix.
21 Calix Not U/S 33(7) 11/28/2004 Land Area: 0.0992 120.00 150.00 Physical possession is yet to First Appeal in High Court
International, recognised Ajutangso, be completed. No. 353/2014 is pending for
Dhaka Kotowali, Dhaka First Appeal No.116/2003 is hearing.
pending for hearing. 31 Al Hossain (Pvt) Not U/S 33(5) 5/22/2013 Land Area: 10.33 Katha 779.92 974.90 An application was filed
22 Save Power Not U/S 33(7) 11/18/2020 Land Area: 84.5 dec 121.50 152.10 Physical possession is yet to Ltd. Dhaka recognised Mouza- Paikpara, on 14.12.2020 to stay the
Manufacturing recognised land at Gouripur, be completed. Mirpur, Dhaka. operation of Certificate
Inustries Ltd. Cumilla relating to Schedule-B(v)
23 M/s Alif Traders Not U/S 33(7) 1/18/2021 Land Area: 16 decimal, 13.60 16.00 Do in Artha Execution Case
recognized Mouza-Muzgunni, No.336/2005, which is
PS- Daulatpur, Dist- pending.
Khulna. 32 Friends Asociates, Not U/S 33(5) 1/18/2012 Land Area: 20 decimal 96.00 120.00 Scheduled mortgaged
Total NBA obtained u/s 33 (7) 9,303.19 11,659.84 Chattogram recognised Chandgao, Panchlish, property has already been
24 M/s Altaf Hossain, Not U/S 33(5) 10/10/2011 Land Area: 18 decimal, 140.00 112.00 Physical possession is yet to Chattogram. acquired by the Government
Chittagong recognised Jatrabari, Demra, be completed. A Criminal case (1627/2012)
Dhaka. against the Borrower,
25 M/s Janata Not U/S 33(5) 11/1/2011 Land Area: 125.28 Sft 8.50 10.00 Do
Guarantors and Beneficiary
Trading, recognised Chandgao, Bakalia,
was filed, which is pending
Chittagong Chittagong.
for hearing in the court
26 M/s Nurain Trade Not U/S 33(5) 8/2/2015 Land Area: 2.05 Acre 200.00 248.40 Do
and also an execution case
International, recognised Sreepur, Mouza-
(24/2011) is pending in the
Gazipur Dhanuya, Gazipur.
Artha Rin Court. [the Ld.
27 M/s Austin & Not U/S 33(5) 11/16/2015 A) Land Area: 1.40 2,383.17 2,978.97 Physical possession is yet to
Court Convicted Judgment
Co. and M/s M.R recognised acres, Mouza Kathaldia, be completed.
Debtors for a period of 2
Enterprise P.S- Gulshan, Dhaka. First appeal in high court
months of imprisonment.]
B) Land Area: 0.99 no. 163/2007 pending for
33 M/s Shati Traders, Not U/S 33(5) 2/2/2010 Land Area: 28 decimal 35.00 35.00 Scheduled mortgaged
acres, Mouza Kathaldia, hearing.
Chattogram recognised Bakalia, Bandar, property has already been
P.S- Gulshan, Dhaka.
Chattogram. acquired by the Government.
C) Land Area: 0.8031
A Criminal case (172/2012)
acres, Mouza Haridia,
against the Borrower,
P.S- Lohajang,
Guarantors and Beneficiary
Munshiganj.
was filed which is pending
28 Latif Apparels Not U/S 33(5) 11/17/2015 Land Area: 3.75 93.60 117.00 2nd execution case no.
for hearing in the court
(Pvt) Ltd, Dhaka recognised decimal, 266/16(Arising out of 1st
and also an execution case
Mouza Uttarkhan, Artha Execution Suit No.
(154/2015) is pending in the
Uttara, Dhaka. 7/14, Artha Artharin Suit No.
Artha Rin Court.
154/2005) is pending.
34 Talukder Group Not U/S 33(5) 12-09-2019 Apartment size: 2250 182.00 202.50 We have only obtained
29 Sheuly Fashion, Not U/S 33(5) 3/15/2016 Land Area: 0240 117.30 146.60 Physical possession is yet to
[Pasi pasu with recognised sft including 1 (one) certificate in respect of a flat
Dhaka recognised Ajutangsha, be completed.
HSBC]" Car Parking space of a situated in Uttara, Dhaka and
Mouza Lalbag, Gour
6 (six) storied building for the property situated at
sundar Roy lane,
located at Plot No. 11, Jashore, Arth Execution case
Dhaka.
Road No. 02, Sector No. 06/19 is pending in Artha Rin
3, Uttara R/A, Dhaka Adalat, Jashore for disposal.
HSBC filed Artha Exe. Case
No.48/19 (Artha Rin Suit
No.556/15) is pending.

270 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 271
 Financial Reports
Forced Forced
Market Market
Obtained Sale Obtained Sale
Name of the Status of Entitlement Value Name of the Status of Entitlement Value
SL u/s Asset Details Value Legal Status SL u/s Asset Details Value Legal Status
accounts NBA Date (BDT in accounts NBA Date (BDT in
33(7)/33(5) (BDT in 33(7)/33(5) (BDT in
Lac) Lac)
Lac) Lac)
35 Moon light Not U/S 33(5) 15-02-2018 i) Land Area: 0.900 456.85 571.06 Physical possession is yet to 39 Mohd. Elias Not U/S 33(5) 4/12/2017 Land Area: 142 7,550.00 8,703.20 After obtaining Certificate
Traders" recognised (nine hundred) be completed. Brothers (PVT) Ltd recognised Decimal under section 33(5) of ARA,
Ajutansho, Mouza : Mouza : Chandgaon, judgment debtor no. 03
Sutrapur, Gendaria, Bahaddarhat, Mr. Nurul Absar filed writ
Dhaka Chittagong petition no. 13984 of 2017
ii) Land Area: 2 and got stay order for a
(two dec.): Mouza : period of 06 months. Stay
Tejkunipara, Dhaka order vacated. Meanwhile,
36 R.K Agro Products Not U/S 33(5) 8/7/2018 Land Area: 1) 44.22 411.46 514.32 The Property was sold at we have submitted a petition
Ltd. recognised Decimal, mouza - Paity, BDT 310.00 lac out of which for issuance arrest warrant
Demra, District Dhaka. BDT 93.00 lac was received on 23.07.2020 after hearing
2) 41.50 Decimal, and rest amount is yet to be the ld. court issued show
mouza - Paity, Demra, received after completion cause notice for 20 days after
District Dhaka. of documentation with serving of show cause notice
registraton. we put the file for issuing
A petition case No. 53/19 warrant. On 13.10.2020
filed by borrower in pending the Ld. Court issued arrest
in executive Magistrate Court, warrant for 06 months civil
Dhaka. jail but the judgment debtors
37 Liberty Fashion Not U/S 33(5) 5/29/2019 Land Area: 615.4 769.3 2nd Execution Case No.12/20 got stay order from the
Wears Ltd. recognised 1) 8.28 decimal, mouza filed on 21-01-2020 for Appellate Division against
- Senpara Parbata, Tk.115.71 Crore. Upon the order of arrest warrant.
Mirpur Housing Estate, considering our application Next date fixed on 03.03.2021
Sec-2, Plot-9, R-3, learned court was pleased for submission of stay order
District Dhaka. to pass order for issuance and possession application
2) 1467.57 sft. warrant of arrest. Next date hearing.
apartment alongwith fixed on 09.06.2021 for return 40 M/s Baghdad Not U/S 33(5) 2/19/2018 Land Area: 1 Gonda 2 104.67 130.84 Physical possession is yet to
1/2 decimal land at of warrant of arrest. Exim Corp Ltd recognised Kora 4.5 Danta be completed.
Uttara Model Town, SJIBL filed Artha Execution Mouza : Madarbari, Writ petition in high court no.
R#31,S-7,plot 5, Dhaka. Case No.72/19 (Artha Rin Suit Bandar,Chittagong. 10987/2016 is pending for
[322 dec land & No. 196/16 ) is pending. hearing.
properties at Zirani, 41 S M Amjad Not U/S 33(5) 9/22/2020 1) Land Area: 10 gonda 669.87 805.94 Physical possession is yet to
Savar, Dhaka at BDT Hossain recognised 1 kara 1 kanta 0.5 be completed.
55.00 Crore EBL got Danta, Mouza: Bakalia, Civil Rule 472(FM)/2019
BDT 41.98 and rest BDT P.S: Panchlaish, (arising out of F.M.A.T No.
13.02 Crore received by Chattogram 570/2019) is pending for
SJIBL] 2) Land Area : 246 hearing.
38 M/s Sidique Not U/S 33(5) 10/9/2019 1) Land Area: 12 601.54 707.70 Physical possession is yet to Decimal, Mouza:
Traders recognised decimal, Mouza be completed. Chikandandi/
Bakoila, Bakolia, Kandokia/kolgaon,
Chittagong. P.S:Hathazari,
02) Land Area: 30 Chattgogram
decimal, Mouza South 42 M/s Abul Kalam Not U/S 33(5) 12/14/2020 08 decimal land at 12.80 16.00 Physical possession yet to be
Kattali, Pahartali, recognised Mouza Mujgunni, completed.
Chittagong. Khulna
03) Land Area: 23 Total NBA obtained u/s 33 (5) 14,025.57 16,648.10
decimal, Mouza South Total NBA obtained u/s 33 (7) & 33 (5) 23,328.76 28,307.94
Kattali, Pahartali,
Chittagong.
04) Land Area: 35
decimal, Mouza North
Halishahar, Halishahar,
Chittagong.

272 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 273
Eastern Bank Limited and its subsidiaries Annexure-E Eastern Bank Limited (Solo) Annexure-F

Financial Reports
Business segmental profit and loss account Highlights on the overall Activities/Performance
for the year ended 31 December 2020
BDT in million Sl No Particulars 2020 2019
Bank (Solo) Subsidiaries Bank
Particulars 1 Paid up capital BDT 8,117,995,470 8,117,995,470
DBO OBO Solo EBLSL EBLIL BLFHKL EBLAML (Consol)
Interest income 18,636 1,285 19,667 372 21 214 14 20,011
2 Total capital (Tier-1 & 2) BDT 33,144,221,423 30,568,648,533
Interest expense 13,130 861 13,737 373 0.1 126 0 13,959
Net Interest Income 5,506 424 5,930 (1) 21 87 14 6,052 3 Surplus/(shortage) capital BDT 11,378,832,457 9,824,938,594
Investment income 5,049 - 5,049 84 9 - 2 5,102
Fees, commission and brokerage 2,041 11 2,051 163 14 63 4 2,296 4 Total assets BDT 336,935,588,554 335,163,467,726
FX Income 770 2 772 - - - - 772
Other operating income 315 16 332 1.70 1 12 - 346 5 Total deposits BDT 242,357,774,879 240,164,128,102
Total operating income 13,681 453 14,134 248 45 162 20 14,567
6 Total loans and advances BDT 228,943,862,895 232,051,034,763
Salary and allowances 3,924 - 3,924 86 15 42 7 4,073
Rent, taxes, insurance, utilities etc. 430 - 430 8 1 1 1 440 7 Total contingent liabilities and commitments BDT 104,060,278,285 99,781,000,677
Legal and professional expenses 64 - 64 0 0.2 0.3 0.03 65
Postage, stamp, telecommunication etc. 132 - 132 2 0.2 5 0 139 8 Loans to deposits ratio (total loans/total deposits) % 94.47 96.62
Stationery, printing, advertisement, etc. 292 - 292 4 0.3 0 0.06 297
Managing Director's salary and allowances 26 - 26 - - - - 26 9 % of classified loans against total loans and advances % 2.72 3.35
Directors' fees and expenses 3 - 3 0.2 0.1 - 0.13 3 10 Profit after tax and provisions BDT 4,102,563,054 4,008,142,126
Audit fees 1 - 1 0.1 0.1 1 0.1 2
Repairs, maintenance and depreciation 970 - 970 27 6 6 2.2 1,011 11 Loans classified during the year (Gross) BDT 29,474,002 4,138,935,944
Other operating expenses 581 19 600 8 3 5 0.1 615
Total operating expense 6,422 19 6,441 135 25 60 10 6,672 12 Provision held against classified loans BDT 3,433,559,987 4,360,915,040
Profit before provisions 7,259 433 7,692 113 20 102 10 7,895
Provisions: 13 Surplus of provision BDT 1,768,328,583 239,925,000
Provision for loans, advances & OBS exposures 1,044 49 1,093 132 32 - - 1,257 14 Cost of fund (interest expense/simple average borrowing and deposits) % 4.76 5.58
Other Provisions (92) - (92) - - - (10) (101)
Total Provisions 952 49 1,001 132 32 - (10) 1,155 15 Interest bearing assets BDT 301,684,379,074 292,905,157,870
Profit before tax 6,307 384 6,691 (19) (12) 102 20 6,740
Tax Provision 2,588 - 2,588 (37) (9) 15 3 2,560 16 Non-interest bearing assets BDT 35,251,209,480 42,258,309,855
Profit after tax 3,719 384 4,103 18 (3) 87 17 4,180
17 Income from investments BDT 5,048,674,967 2,751,634,005

Business segmental balance sheet Annexure-E1 18 Return on assets (ROA) (PAT/average assets) % 1.22 1.30

as at 31 December 2020 19 Return on investment or ROI (PAT/average equity, long term borrowings and deposits) % 2.25 2.37
BDT in million
20 Earnings per share BDT 5.05 4.94
Bank (Solo) Subsidiaries Bank
Particulars 21 Operating profit per share (Net Operating profit/ weighted average number of shares) BDT 9.48 10.11
DBO OBO Solo EBLSL EBLIL EBLFHKL EBLAML (Consol)
Assets
22 Price earning ratio Times 7.12 6.72
Cash in hand (including balance with
15,699 - 15,699 0.10 0.02 - - 15,699
Bangladesh Bank and its agent Bank)
Balances with other banks
20,155 1,877 13,003 382 198 682 191 13,393
and financial institutions
Money at call and short notice 60 - 60 - - - - 60
Investments 63,949 - 63,949 1,856 113 - 98 66,016
Loans and advances 203,884 25,060 228,944 3,071 127 3,689 - 230,545
Fixed assets including land, building,
7,711 - 7,711 41 9 8 4 7,773
furniture and fixtures
Other assets 7,420 44 7,464 1,010 19 2 3 5,917
Non-banking assets 106 - 106 - - - - 106
Total Assets 318,984 26,980 336,936 6,360 466 4,381 296 339,508
Liabilities
Borrowing from other banks, financial
27,350 25,965 44,286 3,433 - 3,986 - 46,281
institutions and agents
Deposits and other accounts 242,101 257 242,358 - - - - 241,295
Provisions & other liabilities 20,941 375 21,316 860 146 59 13 22,483
Total Liabilities 290,392 26,597 307,960 4,293 146 4,045 13 310,059
Total Shareholders' Equity 28,592 384 28,976 2,067 320 336 283 29,449
Total Liabilities & Shareholders' Equity 318,984 26,980 336,936 6,360 466 4,381 296 339,508

274 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 275
 Financial Statements of Offshore Banking Operation (OBO)

Eastern Bank Limited

Eastern Bank Limited Annexure - G Offshore Banking Operation, Bangladesh

Financial Reports
Offshore Banking Operation, Bangladesh Profit and Loss Account
Balance Sheet for the year ended 31 December 2020
as at 31 December 2020 2020 2019
Notes
USD BDT USD BDT
2020 2019 Interest income 10 15,144,523 1,285,365,623 20,772,768 1,754,173,020
Notes
USD BDT USD BDT Interest paid on deposits and borrowings 11 10,147,054 861,213,917 16,237,933 1,371,225,254
PROPERTY AND ASSETS Net interest income 4,997,469 424,151,706 4,534,835 382,947,766
Cash Commission, exchange and brokerage 12 141,813 12,036,152 306,235 25,860,240
Other operating Income 13 192,380 16,327,959 247,020 20,859,799
In hand (including foreign currencies) - - - -
Total operating income 5,331,663 452,515,817 5,088,090 429,667,805
With Bangladesh Bank (including foreign currencies) - - - -
- - - - Operating expenses 14 225,961 19,178,057 438,706 37,046,919
Profit before provision 5,105,702 433,337,760 4,649,383 392,620,886
Balance with other Banks and FIs Less :Provision for unclassified Loans and Advances 15 580,749 49,290,124 134,413 11,350,597
(on current and other accounts) 3 (Including provision for off Balance Sheet items)
In Bangladesh 20,000,000 1,696,022,000 34,630,350 2,940,116,701 Profit before income tax 4,524,952 384,047,635 4,514,970 381,270,290
Outside Bangladesh 2,135,717 181,111,144 71,544,808 6,074,154,230 Less. Provision for income tax - - - -
22,135,717 1,877,133,144 106,175,158 9,014,270,931 Net Profit/(loss) after tax 4,524,952 384,047,635 4,514,970 381,270,290
Money at call and short notice - - - - Balance of Profit brought forward from previous year - - - -
Investment - - - - Retained Earnings carried forward 16 4,524,952 384,047,635 4,514,970 381,270,290

Loans and Advances: 4 The annexed notes 1 to 20 form an integral part of these financial statements.

Loans, cash credits, overdrafts etc. 4.1 147,208,252 12,483,421,697 133,196,615 11,308,392,602
Bills purchased and discounted 4.2 148,303,737 12,576,320,025 142,172,875 12,070,477,080 Eastern Bank Limited
295,511,989 25,059,741,722 275,369,490 23,378,869,682 Offshore Banking Operation, Bangladesh
Fixed Assets
Other Assets 5
-
514,201
-
43,604,845
-
1,073,123
-
91,108,104
Cash Flow Statement
Non Banking Assets - - - - for the year ended 31 December 2020
TOTAL ASSETS 318,161,907 26,980,479,711 382,617,771 32,484,248,718
2020 2019
Notes
USD BDT USD BDT
CAPITAL AND LIABILITIES
A) Cash flow from operating activities
Borrowing from other banks, financial institutions and agents 6
Interest received 15,617,796 1,322,465,671 20,262,303 1,707,751,275
Bangladesh Bank - - - -
Interest paid (11,707,446) (980,406,207) (16,003,365) (1,337,966,788)
Other Banks and FIs Commission, exchange and brokerage 17 141,813 12,036,152 306,235 25,860,240
Demand Borrowing 6.1 106,467,195 9,028,535,227 49,085,682 4,167,374,362 Received from other operating activities 18 192,380 16,327,959 247,020 20,859,799
Term Borrowing 6.2 199,720,103 16,936,484,403 319,915,720 27,160,844,639 Paid for operating expenses 19 (225,961) (19,178,057) (438,706) (37,046,919)
306,187,297 25,965,019,630 369,001,402 31,328,219,002 Operating profit before changes in operating
4,018,583 351,245,517 4,373,486 379,457,606
306,187,297 25,965,019,630 369,001,402 31,328,219,002 assets and liabilities
Deposits and other accounts 7 (Increase)/decrease in operating assets:
Current deposits and other accounts 7.1 3,027,026 256,695,118 3,796,134 322,291,809 Loan and advances to customers (20,142,499) (1,680,872,040) (13,934,626) (1,444,484,622)
Term deposits 7.2 - - - - Other Assets 85,648 10,403,211 1,210,973 104,121,260
3,027,026 256,695,118 3,796,134 322,291,809 Increase/(decrease) in operating liabilities:
Customers' deposits and other accounts 791,284 53,595,599 (42,974) (13,387,541)
Other Liabilities 8 4,422,631 375,044,030 5,305,264 450,416,921
Other liabilities (1,463,382) (124,663,016) (399,456) (28,282,380)
TOTAL LIABILITIES 313,636,954 26,596,758,778 378,102,800 32,100,927,733 (20,728,950) (1,741,536,245) (13,166,082) (1,382,033,284)
Net cash flow from operating activities (16,710,367) (1,390,290,726) (8,792,596) (1,002,575,678)
CAPITAL/SHAREHOLDERS' EQUITY
B) Cash flow from investing activities - - - -
Share capital- Paid up capital - - - -
C) Cash flow from financing activities
Foreign currency translation difference 9 - (326,702) - 2,050,696
Borrowing from other banks, financial institutions and agents (62,814,102) (5,363,199,375) 10,110,296 1,217,255,127
Profit and loss account- retained earnings 16 4,524,953 384,047,635 4,514,971 381,270,290
Net profit transferred to main operations 16 (4,514,971) (381,270,290) (3,403,590) (284,060,896)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 318,161,907 26,980,479,711 382,617,771 32,484,248,718 Net cash from financing activities (67,329,073) (5,744,469,665) 6,706,705 933,194,230
D) Net (decrease) / increase in cash (A+B+C) (84,039,441) (7,134,760,390) (2,085,890) (69,381,446)
OFF BALANCE SHEET ITEMS: E) Effects of exchange rate changes on cash and cash equivalents - (2,377,398) - 550,394
Contingent liabilities: F) Opening cash and cash-equivalents 106,175,158 9,014,270,931 108,261,049 9,083,101,983
Acceptance and endorsements 1,960,896 166,286,127 8,623,979 732,175,825 G) Closing cash and cash equivalent (D+E+F)* 22,135,717 1,877,133,144 106,175,158 9,014,270,931
Letter of guarantee - - - - *Closing cash and cash equivalents 20
Bills for collection 5,136,796 435,605,969 10,619,831 901,623,617 Cash in hand (including foreign currencies) - - - -
Irrevocable letters of credit 2,034,078 172,492,020 6,816,192 578,694,728 Balances with Bangladesh Bank and its agent bank (s) - - - -
Other Commitments - - - - Balances with other Banks and Financial Institutions 22,135,717 1,877,133,144 106,175,158 9,014,270,931
9,131,769 774,384,116 26,060,002 2,212,494,169 Money at call and short notice - - - -
Prize bonds - - - -
The annexed notes 1 to 20 form an integral part of these financial statements. 22,135,717 1,877,133,144 106,175,158 9,014,270,931
The annexed notes 1 to 20 form an integral part of these financial statements.

276 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 277
Eastern Bank Limited
Offshore Banking Operation

Financial Reports
2020 2019
Notes to the Financial Statements Notes
USD BDT USD BDT
as at and for the year ended 31 December 2020 3 Balance with other Banks and Financial Institutions
Inside Bangladesh
1 Nature of business In interest bearing account
Eastern Bank Limited - - 34,630,350 2,940,116,701
"Offshore Banking Operation (""OBO"") is run by separate business unit (Offshore Banking Unit or ""OBU"" or ""the unit"" ) of the Commercial Bank of Ceylon PLC 20,000,000 1,696,022,000 - -
Bank through a separate desk under control and supervision of the Offshore Banking Division. The unit and all activities of the 20,000,000 1,696,022,000 34,630,350 2,940,116,701
division are governed under the permission by Bangladesh Bank vide letter no. BRPD(P)744(89)/2004-303 dated 25 January Outside Bangladesh
2004 and subsequent approvals for continuation by Bangladesh Bank vide letter no. BRPD(P)744(89)/2020-2254 & 2255 dated 25 In interest bearing account
February 2020 in line with the offshore banking policy issued by Bangladesh Bank vide BRPD circular no. 02 dated 25 February EBL Finance (HK) Limited - - 63,700,000 5,408,130,000
2019 and amendments thereon. The activities of the unit is to provide both funded and non-funded facilities and to accept savings/ - - 63,700,000 5,408,130,000
current/term deposits in freely convertible foreign currencies to and from non-resident person/institutions, fully foreign owned In-non interest bearing account
enterprises (Type ‘A’) in EPZs, PEPZs, EZs and Hi-Tech Parks, etc. Besides, OBU offers short term loan facility to the Type ‘B’ Standard Chartered Bank, USA 2,031,452 172,269,373 7,719,789 655,410,118
industrial enterprise in EPZs, PEPZs, EZs and Hi-Tech Parks. In addition, OBU discounts/purchases accepted usance/deferred bills Standard Chartered Bank, Germany 104,265 8,841,771 125,019 10,614,112
against import from abroad and accepted usance/deferred export bills against direct and deemed exports of products produced 2,135,717 181,111,144 7,844,808 666,024,230
in Bangladesh of persons resident in Bangladesh. Offshore Banking conducts banking business activities in foreign currencies. 2,135,717 181,111,144 71,544,808 6,074,154,230
The unit commenced its operations on 19 May 2004 and its office is located at 100 Gulshan Avenue, Dhaka-1212." 22,135,717 1,877,133,144 106,175,158 9,014,270,931
4 Loans and advances
2 Significant accounting policies and basis of preparations i) Loans, cash credits, overdrafts, etc. 4.1 147,208,252 12,483,421,697 133,196,615 11,308,392,602
ii) Bills discounted and purchased 4.2 148,303,737 12,576,320,025 142,172,875 12,070,477,080
Basis of preparation 295,511,989 25,059,741,722 275,369,490 23,378,869,682

2.1 Statement of compliance 4.1 Loans, Cash Credit, Overdraft etc.

Inside Bangladesh :
The financial statements of the operation / the Unit as at and for the year ended 31 December 2020 have been prepared in Loans 97,698,437 8,284,934,931 129,936,526 11,031,611,071
accordance with International Financial Reporting Standards (IFRSs), the "First Schedule" (section 38) of the Bank Company Act
Cash Credit - - - -
1991. The accounting policies set out in the financial statements of main operation of the Bank have been applied consistently in
Overdraft 2,509,815 212,830,742 3,260,089 276,781,531
these financial statements except otherwise instructed by the Central Bank as prime regulator.
100,208,252 8,497,765,673 133,196,615 11,308,392,602
2.2 Loans and advances Outside Bangladesh :
Loans - - - -
a) These are stated gross, with accumulated specific and general provisions for bad and doubtful debts being shown under other
Cash Credit - - - -
liabilities.
Overdraft 47,000,000 3,985,656,024 - -
b) Provision for Loans and Advances is made on the basis of period end review by the management and of instructions contained
47,000,000 3,985,656,024 - -
in BRPD circular no. 14 dated 23 September 2012, BRPD circular no. 19 dated 27 December 2012, BRPD circular no 12 dated
147,208,252 12,483,421,697 133,196,615 11,308,392,602
20 August 2017, BRPD circular no 15 dated 27 September 2017,BRPD Circular no. 16 dated 21 July 2020, BRPD Circular no
17 dated 28 September 2020, BRPD Circular Letter no 52 dated 20 October 2020 and BRPD Circular Letter no 56 dated 10 4.2 Bills Purchased and Discounted
December 2020. Inside Bangladesh :
Bills Discounted - - - -
2.3 General
Bills Financed 148,303,737 12,576,320,025 142,172,875 12,070,477,080
Allocation of common expenses 148,303,737 12,576,320,025 142,172,875 12,070,477,080
Outside Bangladesh :
Operaing expenses in the nature of rent, rates and taxes, salaries, management expenses, printing and stationery, electricity,
postages, stamps, telecommunication and audit fees are accounted for in Account of the Main Operation of the Bank. Bills Discounted - - - -
Bills Financed - - - -
Fixed Assets and depreciation
- - - -
Fixed assets of this unit are appearing in the books of the main operation of the bank and depreciation is also charged to Profit and 148,303,737 12,576,320,025 142,172,875 12,070,477,080
Loss Account of the main operation of the Bank. 5 Other Assets
Certain corresponding figures in the financial statements have been reclassifed and rearranged to conform to the current year's Prepayments 490,000 41,552,541 65,183 5,534,007
presentation. Interest Receivable on Term Placement 24,201 2,052,304 1,007,940 85,574,098
Receivable from Customer under structured bill finance - - - -
These financial statements of the unit cover one calender year from 1 January 2020 to 31 December 2020.
514,201 43,604,845 1,073,123 91,108,104
6 Borrowings from other banks, financial institutions and agents
Demand Borrowings 6.1 106,467,195 9,028,535,227 49,085,682 4,167,374,362
Term Borrowings 6.2 199,720,103 16,936,484,403 319,915,720 27,160,844,639
306,187,297 25,965,019,630 369,001,402 31,328,219,001
6.1 Demand Borrowings
In non interest bearing account with
Standard Chartered Bank, New York - - - -
In interest bearing account with
Eastern Bank Limited (DBU) 106,467,195 9,028,535,227 49,085,682 4,167,374,362
106,467,195 9,028,535,227 49,085,682 4,167,374,362

278 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 279
 Financial Reports
2020 2019 2020 2019
Notes Notes
USD BDT USD BDT USD BDT USD BDT
6.2 Term Borrowings 9 Foreign currency translation difference
Borrowing inside Bangladesh The foreign currency translation difference is a net result of exchange differrence of year end standard mid rate and monthly average
WOORI Bank 3,000,000 254,403,300 - - of standard mid rate arising from translation of functional currency to presentation currecy. Assets and liabilities of OBO have been
Investment Promotion & Financing Facility (IPFF) 3,166,687 268,538,541 3,647,850 309,702,465 presented into Taka (which is functional currency of the Bank) using year end standard mid rate of exchange of the Bank i.e. USD 1
6,166,687 522,941,841 3,647,850 309,702,465 = BDT 84.8011 (2019: BDT 84.90) and incomes and expenses are translated using monthly average of standard mid rate of exchange
Borrowing outside Bangladesh (USD 1= BDT 84.8733).
Abu Dhabi Commercial Bank, Dubai - - 49,967,201 4,242,215,372 10 Interest income
Asian Development Bank (ADB) 10,588,235 897,893,999 15,294,118 1,298,470,588 Interest on Advances 12,491,359 1,060,182,896 16,676,439 1,408,255,240
Bank of Montreal, Canada - - 5,874,020 498,704,311 Interest on Money at Call and Short Notice - - - -
Commerz Bank, Frankfurt - - 25,631,861 2,176,144,957 Interest on Placement with other Banks 2,653,163 225,182,726 4,096,329 345,917,779
DBS Bank, Singapore - - 39,274,347 3,334,392,035 15,144,523 1,285,365,623 20,772,768 1,754,173,020
Deutsche Investitions-Und 11 Interest paid on deposits and borrowings
Entwicklungsgesellschaft Mbh 56,000,000 4,748,861,600 32,000,000 2,716,800,000 Interest on Deposits - - - -
HDFC Bank, Mumbai 10,000,000 848,011,000 19,350,000 1,642,815,000 Interest on Borrowings 10,147,054 861,213,917 16,237,933 1,371,225,254
ICICI Bank, Mumbai - - 13,441,380 1,141,173,157 Interest on Margin - - - -
International Finance Corporation (IFC) - - 1,603,820 136,164,301 10,147,054 861,213,917 16,237,933 1,371,225,254
ITFC - - 2,062,544 175,110,027
12 Commission, exchange and brokerage
JP Morgan Chase, Singapore 16,120,000 1,366,993,732 - -
Fees & Commission 93,532 7,938,398 309,602 26,144,613
Korea Development Bank, Singapore 32,983,629 2,797,048,041 36,244,042 3,077,119,161
Exchange gain/(loss) net off exchange gains* 48,281 4,097,754 (3,368) (284,373)
National Bank of Ras Al-Khaimah - - 14,813,931 1,257,702,722
Brokerage - - - -
OEEB 20,000,000 1,696,022,000 - -
141,813 12,036,152 306,235 25,860,240
Opec fund for International Development 25,000,000 2,120,027,500 25,000,000 2,122,500,000
PROPARCO 5,454,546 462,551,458 9,090,909 771,818,184 *The net result of exchange differeces arising from day to day transactions & revaluation of monetary items are recognized in profit
Standard Chartered Bank, Singapore 151,861 12,877,943 26,619,698 2,260,012,361 and loss account as per BAS 21 (The Effect of changes in Foreign Exchange Rates).
Wells Fargo, USA 17,255,145 1,463,255,289 - - 13 Other Operating Income
193,553,416 16,413,542,562 316,267,870 26,851,142,174 Rebate of Foreign Correspondence Charges 130,446 11,071,370 144,913 12,237,270
199,720,103 16,936,484,403 319,915,720 27,160,844,639 Swift charges recovered 11,337 962,209 18,669 1,576,519
6.1.a Classification based on type of security Postage charges recovered 1,723 146,237 5,169 436,500
Secured - - - - Service charges (others) 48,875 4,148,144 78,269 6,609,510
Unsecured 306,187,297 25,965,019,630 369,001,402 31,328,219,001 192,380 16,327,959 247,020 20,859,799
306,187,297 25,965,019,630 369,001,402 31,328,219,001
14 Operating Expenses
7 Deposits and other accounts Account Maintenance & Processing fees 225,961 19,178,057 438,706 37,046,919
Current deposits and other accounts 7.1 3,027,026 256,695,118 3,796,134 322,291,809 Other charges - - - -
Term deposits 7.2 - - - - 225,961 19,178,057 438,706 37,046,919
3,027,026 256,695,118 3,796,134 322,291,809
15 Provision for Loans and Advances
7.1 Current deposits and other accounts:
General Provision 86,973 7,381,687 134,413 11,350,597
Current account 2,008,975 170,363,291 2,782,639 236,246,024
Special General Provision for Covid 19 493,776 41,908,437
Other Accounts 7.1.a 1,018,051 86,331,827 1,013,496 86,045,785
Specific Provision - - - -
3,027,026 256,695,118 3,796,134 322,291,809
580,749 49,290,124 134,413 11,350,597
7.1.a Other Accounts:
16 Surplus in profit and loss account
Interest Payable on deposit - - - -
Opening balance 4,514,971 381,270,290 3,403,590 284,060,896
Margin on Facility 1,018,051 86,331,827 1,013,496 86,045,785
Add: Profit during the year 4,524,953 384,047,635 4,514,971 381,270,290
1,018,051 86,331,827 1,013,496 86,045,785
9,039,924 765,317,925 7,918,561 665,331,186
7.2 Term deposits Less: Transferred to Main operation during the year (4,514,971) (381,270,290) (3,403,590) (284,060,896)
Special notice deposit- SND - - - - Closing balance 4,524,953 384,047,635 4,514,971 381,270,290
Term deposit - BB - - - -
- - - - 17 Cash received from commission, exchange and brokerage
Commission, exchange and brokerage 141,813 12,036,152 306,235 25,860,240
8 Other liabilities
141,813 12,036,152 306,235 25,860,240
Provision for taxation 8.1 - - - -
Provision for unclassified Loans and advances 2,995,070 253,985,199 2,908,097 246,897,402 18 Cash received from other operating activities
(Including provision for off-balance sheet items) Service charges, SWIFT charges etc. 192,380 16,327,959 247,020 20,859,799
Special General Provision for Covid 19 493,776 41,872,787 - - 192,380 16,327,959 247,020 20,859,799
Interest Suspense Account 328,911 27,892,037 - -
19 Paid for operating expenses
Interest payable on Borrowing 592,567 50,250,321 2,387,527 202,701,077
Operating expenses (225,961) (19,178,057) (438,706) (37,046,919)
Privilage Creditors 12,162 1,031,352 8,495 721,231
(225,961) (19,178,057) (438,706) (37,046,919)
Sundry Creditors 145 12,334 1,145 97,211
4,422,631 375,044,030 5,305,264 450,416,921 20 Cash and cash equivalent
8.1 Provision for tax of the unit is accounted for in the book of Eastern Bank Limited. Balance with other banks & FIs 22,135,717 1,877,133,144 106,175,158 9,014,270,931
Money at call and short notice - - - -
22,135,717 1,877,133,144 106,175,158 9,014,270,931

280 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 281
Financial Statements of the Subsidiaries can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence

Financial Reports
the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit.
EBL Securities Limited We also:

Independent Auditor’s Report  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
to the shareholders of EBL Securities Limited audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
Report on the audit of the Financial Statements collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Opinion  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
We have audited the financial statements of EBL Securities Limited which comprise the statement of financial position as at 31 December
2020, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year  Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information. by management.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company as at 31 December  Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
2020, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability
Standards (IFRSs). to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
Basis for opinion
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are to cease to continue as a going concern.
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of
 Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Bangladesh, and we
statements represent the underlying transactions and events in a manner that achieves fair presentation.
have fulfilled our other ethical responsibilities in accordance with the requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Other information
Report on other legal and regulatory requirements
Management is responsible for the other information. The other information comprises the information included in the director’s reports,
but doesn’t include the financial statements and our auditor’s report thereon. The director’s reports are expected to be made available to us We also report that the financial statements comply with the Companies Act 1994, the Securities and Exchange Rules 1987 and the other
after the date of this auditor’s report. applicable laws and regulations. We, as required by law, further report that:

Our opinion on the financial statements does not cover other information and we do not express any form of assurance conclusion thereon. a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes
of our audit and made due verification thereof;
In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes
available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge b) in our opinion, proper books of accounts as required by law have been kept by the Company so far as it appeared from our examination
obtained in the audit or otherwise appears to be materially misstated. of these books; and

When we read the director’s reports, there is a material misstatement therein, we are required to communicate the matter to those charged c) the statements of financial position and statement of profit or loss and other comprehensive income dealt with by the report are in
with governance. agreement with the books of accounts and returns.

Responsibilities of management and those charged with governance for the Financial Statements and Internal Controls

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with IFRSs, the Companies
Signed for and on behalf of
Act 1994, the Securities and Exchange Rules 1987 and other applicable laws and regulations and for such internal control as management
Dhaka, ACNABIN
determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud
07 March 2021 Chartered Accountants
or error.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either
Md Moniruzzaman FCA
intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Partner
Those charged with governance are responsible for overseeing the Company’s financial reporting process. ICAB Enrollment No. 787
DVC: 2103290787AS956644
Auditor’s responsibilities for the audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements

282 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 283
EBL Securities Limited EBL Securities Limited

Financial Reports
Statement of Financial Position Statement of Profit or Loss and Other Comprehensive Income
as at 31 December 2020 for the year ended 31 December 2020
Amount in BDT Amount in BDT

Notes 2020 2019 Particualrs Notes 2020 2019

ASSETS Operating Income
Non-Current Assets 964,683,637 883,321,920 Brokerage commission income 21 187,734,232 211,181,546
Property, Plant and Equipment 4 41,279,284 42,605,053 Direct expenses 22 (26,292,786) (26,602,409)
Deferred Tax Asset 5 82,687,487 - Net Brokerage Commission Income 161,441,447 184,579,137
Investments with DSE & CSE 6 840,716,867 840,716,867 Interest income 23 372,106,406 401,609,773
Interest expense 24 (371,618,139) (455,048,743)
Net Interest Income 488,267 (53,438,970)
Current Assets 5,538,000,177 5,633,540,568
Investment in Shares 7 1,855,796,095 2,034,543,238 Investment income 25 83,614,707 61,192,076
Advance, Deposits and Prepayments 8 166,704,221 108,228,261 Other operating income 26 3,322,194 1,693,979
Accounts Receivable 9 62,611,095 39,549,373 Total Operating Income 248,866,616 194,026,222
Loan to Clients 10 3,070,938,335 2,783,604,732 Operating expenses 27 (135,709,493) (161,899,879)
Cash & Bank Balance 11 381,950,431 667,614,964 Office & administrative expenses (130,533,207) (150,867,054)
TOTAL ASSETS 6,502,683,814 6,516,862,488 Bank charges & other expenses (5,176,286) (11,032,825)
Net Operating Profit 113,157,123 32,126,343
EQUITY AND LIABILITIES Provision for loss on margin loan (131,705,649) -
Shareholders’ Equity 2,066,652,181 2,048,341,501 Provision for diminution in value of quoted securities - (66,446,236)
Share Capital 12 1,500,000,000 1,500,000,000 Loss Before Income Tax (18,548,526) (34,319,893)
Revaluation Reserve for Investments with DSE & CSE 13 639,212,367 639,212,367 Less: Income Tax Expense 28 36,859,206 (56,476,231)
Retained Earnings 14 (72,560,186) (90,870,866) Current Tax (45,828,281) (56,476,231)
Deferred Tax income 82,687,487 -
Non-Current Liabilities Net Profit/(Loss) for the year 18,310,680 (90,796,124)
Lease liability 15 15,185,024 7,892,177 Other comprehensive income - -
Total Comprehensive Income/(Loss) 18,310,680 (90,796,124)
Current Liabilities 4,420,846,609 4,460,628,811 Earnings per Share (EPS) 29 12.21 (60.53)
Accounts Payable 16 292,823,904 213,412,464
Short Term Loan 17 3,433,140,420 3,733,385,187
The annexed notes from 1 to 29 form an integral part of these Financial Statements.
Liabilities for Expenses 18 27,025,042 16,911,086
Other Liabilities 19 519,289,629 391,266,998
Provision for Tax 20 148,567,615 105,653,076
TOTAL LIABILITIES 4,436,031,633 4,468,520,988
TOTAL EQUITY AND LIABILITIES 6,502,683,814 6,516,862,488

The annexed notes from 1 to 29 form an integral part of these Financial Statements.
Managing Director Director Chairman
Md. Sayadur Rahman Ali Reza Iftekhar Mohd. Noor Ali

This is the Statement of Profit or Loss and Other Comprehensive Income referred to in our separate report of even date.
Managing Director Director Chairman
Md. Sayadur Rahman Ali Reza Iftekhar Mohd. Noor Ali
Signed for and on behalf of
This is the Statement of Financial Position referred to in our separate report of even date. ACNABIN
Dhaka,
Chartered Accountants
07 March 2021
Signed for and on behalf of
ACNABIN
Dhaka,
Chartered Accountants
07 March 2021 Md Moniruzzaman FCA
Partner
ICAB Enrollment No. 787
Md Moniruzzaman FCA DVC: 2103290787AS956644
Partner
ICAB Enrollment No. 787
DVC: 2103290787AS956644

284 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 285
EBL Securities Limited EBL Securities Limited

Financial Reports
Statement of Changes in Equity Notes to the Financial Statements
for the year ended 31 December 2020 as at and for the year ended 31 December 2020
Amount in BDT
Revaluation reserve 1. Company and its activities
Particulars Share capital for investment with Retained Earnings Total Equity
1.1 Legal status and nature of the company
DSE & CSE
Balance as at 01 January 2020 1,500,000,000 639,212,367 (90,870,866) 2,048,341,501 EBL Securities Ltd. is one of the leading brokerage houses domiciled in Bangladesh which has been constituted by changing the
Net profit for the year - - 18,310,680 18,310,680 name of LRK Securities Limited, limited by shares incorporated under the Companies Act 1994 incorporation no. C-32161 (1282)/97.
Balance as at 31 December 2020 1,500,000,000 639,212,367 (72,560,186) 2,066,652,181 EBL Securities Limited is the TREC holder (Trading Right Entitlement Certificate) of both Dhaka Stock Exchange (DSE) and Chittagong
Balance as at 01 January 2019 1,500,000,000 639,212,367 (74,742) 2,139,137,625 Stock Exchange (CSE) bearing certificate no. 026 and 021 dated 03 November 2013 and 28 October 2013 respectively.
Net loss for the year - - (90,796,124) (90,796,124)
1.2 Principal activities and nature of operation
Balance as at 31 December 2019 1,500,000,000 639,212,367 (90,870,866) 2,048,341,501
The annexed notes from 1 to 29 form an integral part of these Financial Statements. The principal activities of the company is to buy, sell, deal and invest in shares, stocks, debentures and other securities, to become
TREC holder of stock exchange in Bangladesh and/ or elsewhere and undertake all the functions of a Stock Exchange TREC holder.
2. Basis of preparation and significant accounting policies
2.1 Statement of compliance
Dhaka,
Managing Director Director Chairman The financial statements are prepared on the historical cost basis except measuring fair value of DSE & CSE TREC and shares and
07 March 2021
Md. Sayadur Rahman Ali Reza Iftekhar Mohd. Noor Ali therefore, did not take into consideration the effect of inflation. The financial statements have been prepared and the disclosures
of information have been made in accordance with the companies Act, 1994. the Securities and Exchange Rules, 1987, the listing
EBL Securities Limited Rules of Dhaka Stock Exchange, Guidelines from Bangladesh Securities & Exchange Commission (BSEC), International Accounting
Standards (IAS) and International Financial Reporting Standards (IFRS) and other applicable laws and regulations.
Statement of Cash Flows 2.2 Other regulatory compliances
for the year ended 31 December 2020 Amount in BDT As required, EBL Securities Limited also complies with the applicable provisions of the following major laws/ statutes:
-Securities and Exchange Rules, 1987;
Particualrs 2020 2019
-Securities and Exchange Commission Act, 1993;
A. Cash Flows From Operating Activities: -Securities and Exchange Commission (Stock-Dealer, Stock-Broker and Authorized Representatives) Rules, 2000;
Profit after tax 18,310,680 (90,796,124) -Income Tax Ordinance, 1984;
Net gain on sale of fixed assets (128,616) -
-Income Tax Rules, 1984;
Depreciation & amortization 25,356,640 25,497,460
(Increase)/Decrease in other assets (42,630,205) 115,136,054
-Value Added Tax and Supplementary Duty Act, 2012;
Income Tax paid (40,124,907) (45,404,681) -Negotiable Instruments Act, 1881; and
Deferred Tax income (82,687,487) - -Other applicable laws and regulations.
(Increase)/Decrease in accounts receivable (23,061,721) 19,305,908
2.3 Basis of measurement
Increase/(Decrease) in accounts payable 79,411,440 (102,627,239)
Increase/(Decrease) in liabilities for expenses 10,113,956 (17,176,398) The financial statements except for cash flow information have been prepared on accrual basis of accounting.
Increase in other liabilities 135,315,478 78,429,306 2.4 Components of financial statements
Increase/(Decrease) in provision for tax 42,914,539 (82,039,633)
Net Cash flow from/(used in) Operating Activities 122,789,796 (99,675,348) -Statement of Financial Position
-Statement of Profit or Loss and Other Comprehensive Income
B. Cash Flows From Investing Activities:
Decrease/(Increase) in investment in securities 178,747,143 (68,787,860) -Statement of Changes in Equity
Increase in loans to customer (287,333,603) (133,407,262) -Statement of Cash Flows
Proceeds from sale of assets 2,781,766 - -Notes to the Financial Statements
Acquisition of fixed assets (2,404,868) (6,123,021)
2.5 Functional and presentational currency
Net Cash used in Investing Activities (108,209,562) (208,318,142)
These financial statements are presented in Bangladeshi Taka (BDT) which is the functional currency of the company. The amounts
C. Cash Flows From Financing Activities:
(Payment) or receipt of short term loan (300,244,767) 210,224,019 in these financial statements have been rounded off to the nearest integer.
Net Cash (used in)/flow from Financing Activities (300,244,767) 210,224,019 2.6 Use of estimates and judgments

D. Net deficit in Cash and Bank Balance (A+B+C) (285,664,534) (97,769,471) Preparation of financial statements requires management to make judgments, estimates and assumptions that affect the reported
E. Unrealised foreign exchange gain/(loss) - - amount of assets and liabilities, income and expenses. These financial statements contained information about the assumptions it
F. Cash and bank balances at the beginning of the year 667,614,964 765,384,434 made about the future and other major sources of estimation uncertainty at the end of the reporting year that have a significant risk
G. Cash and Bank Balance at the end of the year (D+E+F) 381,950,431 667,614,964 of resulting in a material adjustment to the carrying amount of assets, liabilities, income and expenses within the next financial year.
The annexred notes from 1 to 29 form an integral part of these Financial Statements. In accordance with the guidelines as prescribed by IAS 37: Provisions, Contingent Liabilities and Contingent Assets, provisions are
recognized in the following situation:
- When the company has an obligation as a result of past events,
- When it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and
Dhaka,
Managing Director Director Chairman - Reliable estimates can be made of the amount of the obligation.
07 March 2021
Md. Sayadur Rahman Ali Reza Iftekhar Mohd. Noor Ali

286 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 287
 Financial Reports
2.7 Consistency 3.2.3 Amortization
In accordance with the IFRS framework for the presentation of financial statements together with IAS 1 and IAS 8, EBL Securities Amortization is calculated using the straight line method to write down the cost of intangible asset to its straight line values (33.33%).
Limited applies the accounting disclosure principles consistently from one Year to the next. Where selecting and applying new 3.3 Impairment
accounting policies, changes in accounting policies applied, corrections of errors, the amounts involved are accounted for and
The carrying value of the Company's assets other than inventories, are reviewed at closing date to determine whether there is
retrospectively accordance with the requirement of IAS 8. We however, have applied the same accounting principles in 2020 as was
any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated. An impairment loss is
for in financial statements for 2019.
recognized whenever the carrying amount of the asset or its cash-generating unit exceeds its recoverable amount. Impairment
2.8 Going concern losses, if any, are recognized in the profit and loss account.
The Company has adequate resources to continue in operation for the foreseeable future. For this reason the directors continue to 3.4 Cash and cash equivalents
adopt going concern assumption in preparing the financial statements. The current credit facilities and adequate resources of the
Cash and cash equivalents include cash in hand, cash at bank and fixed deposits which are held and are available for use by the
company provide sufficient funds to meet the present requirements of its existing businesses and operations.
Company without any restriction. There is insignificant risk of change in the value of the above items.
2.9 Reporting year
3.5 Accounts receivable
The financial Year of the Company covers twelve months from 01 January 2020 to 31 December 2020.
Acounts receivables are stated at nominal values as reduced by the appropriate allowances for estimated doubtful amounts. No such
2.10 Investment in stock exchanges for membership
receivables are accounted for if the loans are classified as bad and loss. Receivable include the amount receivable both from DSE
In accordance with section 8 of the Exchanges Demutualization Act, 2013, both stock exchange membership have been converted and CSE against daily transaction settlement and dividend income from investments, etc.
into shares through the issuance of two completely de-linked assets to the former members in the Exchange, namely (a) fully paid-
3.6 Loan to clients
up shares and (b) trading right. Exchanges shall have the authority to issue Trading Right Entitlement Certificate (TREC), as per the
Exchanges Demutualization Act, 2013 and as outlined in the scheme, to provide the right to trade any securities enlisted in Dhaka EBL Securities Limited extends margin loan to the portfolio investors at an agreed ratio (between investors deposit and loan amount)
Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) to eligible brokers and dealers. Such TRECs will be totally separated of purchased securities against the respective investor account. The investors have to maintain the margin as per set rules and
from the ownership of the Exchange as there is no obligation for TREC holders to be or remain shareholders of the exchange. regulations. The margin is monitored on daily basis as it changes due to change in market price of shares. If the margin falls below
the minimum requirement, the investors are required to deposit additional fund to maintain margin as per rules otherwise the
3. Significant accounting policies
securities are sold to bring the margin to the required level.
The accounting policies set out below have been applied consistently (otherwise as stated) to all Years presented in these financial
3.7 Investment in securities
statements.
Investments in listed securities are recognized at cost. Quarterly impairment test is carried out by comparing cost with market price.
3.1 Property, plant and equipment
In case of diminution of market value compared to cost, provision is made on portfolio basis but no unrealized gain is booked when
3.1.1 Recognition and measurement market value exceeds cost.
These are measured at cost less accumulated deprecation. Cost includes expenditures that are directly attributable to the acquisition 3.8 Recognition and measurement of financial assets
of the property, plant and equipment. Full month’s depreciation has been charged on additions irrespective of date when the related
In accordance with International Financial Reporting Standard (IFRS) 9, financial assets may be recognized at fair value, with gain
assets are put into use and no depreciation is charged for the month of disposal. Depreciation is providing at the rearranged/ re-
and losses taken to the income statement in net investment income. A financial asset or financial liability is classified as held for
fixed following rates on straight-line IAS is in accordance with IAS 16 over the years appropriate to the estimated useful lives of
trading if it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term.
the different types of assets. The new rate of depreciation considering estimated useful lives of the assets, the shortfall amount if
necessary, have been charged during the Year. 3.9 Provision for income tax

3.1.2 Subsequent costs Provision for income tax is made on the basis of Company’s computation based on the best estimate of taxable profit in accordance
with Income Tax Ordinance, 1984.
The cost of replacing part of an item of property, plant and equipment are recognised in the carrying amount of the item if it is
probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. 3.10 Revenue recognition
The costs of the day-to-day servicing of property, plant and equipment are recognised in the profit and loss account as incurred. Revenue is recognized only when it is probable that the economic benefits associated with the transaction will flow to the enterprise
3.1.3 Depreciation & amortization and in accordance with the International Financial Reporting Standard (IFRS)-15 “Revenue from Contracts with Customers”:

Depreciation on property, plant and equipment is charged using straight line method on all assets.Depreciation is charged from the 3.10.1 Brokerage commission
date when the asset are ready to use. Depreciation rates are as follows: Brokerage commission is recognized as income when selling or buying order executed.
Nature of Assets Rate of Depreciation 3.10.2 Interest income from margin loan
Furniture & Fixture 10% Income from margin loan is recognized on accrual basis. Such income is calculated considering daily margin loan balance of the
Television & Multimedia 20% respective customers. Income is recognized on quarterly basis.
Computer & Accessories 33.33%
3.10.3 Dividend income and gain/(loss) on sale of marketable securities
Generator 20%
Office Equipment 20% Dividend income is recognized when right to receive or payment is established whereas profit or loss arising from the sale of
Office Decoration 10% securities is accounted for only when shares are sold in the market and profit is realized or loss is incurred.
Vehicles 20% 3.10.4 Interest income
Interest income is recognized on the loan balance of portfolio clients on monthly accrual basis and charged to clients’ balance on
3.2 Intangible assets
quarterly basis.
3.2.1 Recognition and measurement
3.10.5 Portfolio management fees
The only item in intangible assets is computer software that was acquired by the Company and is measured at cost less accumulated
Portfolio management fees are recognized on the market value of the clients’ portfolio on monthly accrual basis and charged to
amortization and impairment loss, if any.
clients’ balance on quarterly basis.
3.2.2 Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific assets to which it relates.

288 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 289
 Financial Reports
3.10.6 Issue management & corporate advisory 3.17.1 Margin loan
Issue management and corporate advisory fees are recognized according to the stages of completion of services as agreed and One of the principal activities of the company is providing corporate advisory service under which the company provides margin
defined in issue management and corporate advisory agreement between company and client. loan to the clients. Although lockdown and restriction in movements imposed due to COVID-19 has affected margin loan in second
3.10.7 Dividend income and profit or loss on sale of securities quarter of 2020, the Company has managed to recover in the subsequent quarters.

Dividend is accounted for as income when right to receive is established whereas profit or loss arising from the sale of securities is 3.17.2 Investment in shares
accounted for only when the securities are sold/offloaded. Because of the pandemic situation, optimal investment opportunities has shrinked. Despite that the company has made some
3.11 Suspense interest account investment in profitable shares and mutual fund.
Suspense interest account is created against interest income from negative equity customers and vulnerable margin account. 3.17.3 Others
3.12 Income tax expenses Management of the Company has assessed other areas of operations and found no significant impact of COVID-19 thereon.
Income tax expenses comprise current and deferred tax. Income tax expense is recognized in the Statement of Profit or Loss and 3.18 Application of International Accounting Standards (IASs):
Comprehensive Income except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. The Financial Statements have been prepared in compliance with requirement of IASs and IFRSs applicable in Bangladesh.
3.13 Application of International Financial Reporting Standard (IFRS-16) EBL Securities Limited applied following IASs and IFRSs:
Leases
The company has made recognition, measurement and disclosure for both being as Lessee and Lessor as per IFRS 16. Name of the IAS IAS No.
Presentation of Financial Statements 1
Right-of-use assets (ROU):
Statement of Cash Flows 7
EBL Securities Limited recognises the right-of-use assets at the commencement date of the lease (i.e. the date the underlying asset
Accounting Policies, Changes in Accounting Estimates and Errors 8
is available for use). ROU assets are measured at cost less any accumulated depreciation and impairment of losses and adjusted
Events after the Reporting Period 10
for any measurement of lease liabilities. The cost of ROU assets includes the amount of lease liabilities recognise, initial direct cost
Income Taxes 12
incurred, and lease payment made at or before the commencement date less any lease incentives received. Right-of-use assets are
Property, Plant and Equipment 16
depreciated on a straight line basis over the lease term, or remaining year of the lease term.
Employee Benefits 19
Lease Liabilities: Borrowing Costs 23
At the commencement of the lease, the company recognises lease liabilities measured at the present value of lease payments to be Provisions, Contingent Liabilities and Contingent Assets 37
made over the lease term. The lease payment include fixed and variable lease payment (less any adjustment for initial payment), Intangible Assets 38
and amount is expected to be paid under residual value of guarantees. In 2020, the company reassessed all lease payment of existing Name of the IFRS IFRS No.
contracts remaining year considering a cut-off date beginning of 2020. The lease liabilities are presented in the note 15 of these Financial Instruments: Disclosures 7
financial statements. Leases where the company does not transfer substantially all of the risk and benefit of ownership of any asset Financial Instruments 9
are classified as operating assets. Fair Value Meauserement 13
3.14 Provision for diminution in value of investments Revenue from Contracts with Customers 15
Investment in quoted shares and un-quoted shares are revalued at the quarter end at cost price. Provision should be made for any Leases 16
loss arising from diminution in value of investment in light with BSEC circular #BSEC/Survailence/Mukhpatrpo (5th part)/2019/196,
dated 16 July 2020.
3.15 Events after the balance sheet date
Events after the balance sheet date that provide additional information about the Company's position at the balance sheet date are
reflected in the financial statements. Events after the balance sheet date that are not adjusting events have been disclosed in the notes
when material.
3.16 General
i) Figures have been rounded off to the nearest integer.
ii) Previous year's figures have been rearrenged wherever considered necessary to conform to the current year's presentation.
3.17 Impact of COVID-19
On 11 March 2020 the World Health Organization (WHO) declared a global pandemic due to Corona Virus related respiratory disease,
commonly known as COVID-19. To contain the spread of this disease, along with many other countries of the world, the Government
of Bangladesh has also taken a number of measures such as declaration of general holiday, enforcement of lock down, social
distancing, etc. As a result of these measures, all business and economic activities in the country have been adversely affected
and this has also affected the Company. Although the business operation and profitability of the Company have been impacted
by COVID-19, but due to the constantly changing nature of the situation and lack of certainty at present regarding how long this
situation will prevail, the potential impact of COVID-19 related matters on the Company’s operation and financial results cannot be
reasonably assessed. The management of the Company assessed the going concern and found no uncertainty regarding this for
the upcoming 12 months due to COVID-19. Assessment of COVID-19 in relation to the following areas and the conclusion reached
thereof is given below:

290 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 291
EBL Investments Ltd. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Financial Reports
Independent Auditor’s Report  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
to the shareholders of EBL Investments Ltd. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Report on the audit of the Financial Statements  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Opinion
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
We have audited the financial statements of EBL Investments Ltd. which comprise the statement of financial position as at 31 December by management.
2020, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year
then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.  Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company as at 31 December to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
2020, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
Standards (IFRSs). based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company
to cease to continue as a going concern.
Basis for opinion
 Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are
statements represent the underlying transactions and events in a manner that achieves fair presentation.
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of
the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Bangladesh, and we We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
have fulfilled our other ethical responsibilities in accordance with the requirements. We believe that the audit evidence we have obtained is significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
sufficient and appropriate to provide a basis for our opinion.
Report on other legal and regulatory requirements
Other information
We also report that the financial statements comply with the Companies Act 1994, the Securities and Exchange Rules 1987 and the other
Management is responsible for the other information. The other information comprises the information included in the director’s reports, applicable laws and regulations. We, as required by law, further report that:
but doesn’t include the financial statements and our auditor’s report thereon. The director’s reports are expected to be made available to us
after the date of this auditor’s report. a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes
of our audit and made due verification thereof;
Our opinion on the financial statements does not cover other information and we do not express any form of assurance conclusion thereon.
b) in our opinion, proper books of accounts as required by law have been kept by the Company so far as it appeared from our examination
In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes of these books; and
available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated. c) the statements of financial position and statement of profit or loss and other comprehensive income dealt with by the report are in
agreement with the books of accounts and return.
When we read the director’s reports, there is a material misstatement therein, we are required to communicate the matter to those charged
with governance.

Responsibilities of management and those charged with governance for the Financial Statements and Internal Controls

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with IFRSs, the Companies Act
1994, the Securities and Exchange Rules 1987 and other applicable laws and regulations and for such internal control as management determines Signed for and on behalf of
is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Dhaka, ACNABIN
09 March 2021 Chartered Accountants
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either
intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process. Md Moniruzzaman FCA
Partner
Auditor’s responsibilities for the audit of the Financial Statements ICAB Enrollment No. 787
DVC: 2103310787AS776867
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements.

292 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 293
EBL Investments Ltd. EBL Investments Ltd.

Financial Reports
Statement of Financial Position Statement of Profit or Loss and Other Comprehensive Income
as at 31 December 2020 Amount in BDT for the year ended 31 December 2020
Amount in BDT
Notes 2020 2019
Particulars Notes 2020 2019
ASSETS
Operating income 44,985,784 27,539,877
Non-Current Assets 22,605,915 6,980,196 Fees & Commission 18 14,295,140 42,254,837
Property, Plant and Equipment 5 8,659,179 6,980,196 Investment Income 19 9,142,504 (26,385,229)
Deferred Tax Asset 6 13,946,736 - Interest & Other Income 20 21,548,140 11,670,267

Current Assets 445,482,653 410,630,692 Operating expenses 25,230,035 24,316,470

Cash & Cash Equivalent 7 198,161,330 19,352,460 Administrative Expenses 21 24,953,338 24,152,559
Advances, Deposit & Prepayments 8 4,293,045 767,536 Financial Expenses 22 276,697 163,911
Margin Loan 9 126,907,157 217,292,800 Operating Profit before Provision 19,755,748 3,223,406
Accounts Receivable 10 3,006,588 3,768,317 Provision (charged) for diminution in value of investments 23 - (2,224,451)
Investments 11 113,114,533 169,449,579 Provision (charged) for negative equity 23 (31,738,184) -
TOTAL ASSETS 468,088,568 417,610,888 (Loss)/Profit before tax (11,982,436) 998,955
Income Tax Expense (8,831,239) 11,787,327
EQUITY AND LIABILITIES Current Tax 24 5,115,497 11,787,327
Deferred Tax 6 (13,946,736) -
Shareholders’ Equity 319,559,874 322,711,071 Net Loss after tax (3,151,197) (10,788,372)
Share Capital 12 300,000,000 300,000,000 Other comprehensive income - -
Retained Earnings 13 19,559,874 22,711,071 Total Comprehensive income (3,151,197) (10,788,372)

Non-Current Liabilities Earnings per share 25 (1.05) (3.60)

Leased Liability net of Current Maturity 14 429,891 -
The annexed notes from 1 to 27 form an integral part of these financial statements.
Current Liabilities 148,098,803 94,899,817
Current Portion of Lease Liability 14 1,618,302 -
Trade Payable 15 60,842,454 58,297,099
Provision for Income Tax 16 19,155,260 14,039,763
Other Liabilities 17 66,482,786 22,562,954
Total liabilities 148,528,694 417,610,888
TOTAL EQUITY AND LIABILITIES 468,088,568 417,610,888

The annexed notes from 1 to 27 form an integral part of these financial statements. Managing Director (CC) Director Chairman

This is the statement of profit or loss and other comprehensive income referred to in our separate report of even date.

Signed for and on behalf of

Managing Director (CC) Director Chairman ACNABIN
Dhaka,
Chartered Accountants
09 March 2021
This is the statement of financial position referred to in our separate report of even date.

Signed for and on behalf of Md Moniruzzaman FCA

ACNABIN Partner
Dhaka,
Chartered Accountants ICAB Enrollment No. 787
09 March 2021
DVC: 2103310787AS776867

Md Moniruzzaman FCA
Partner
ICAB Enrollment No. 787
DVC: 2103310787AS776867

294 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 295
EBL Investments Ltd. EBL Investments Ltd.

Financial Reports
Statement of Changes in Equity Notes to the Financial Statements
for the year ended 31 December 2020 as at and for the year ended 31 December 2020
Amount in BDT

Particulars Paid-up capital Retained earnings Total Equity 1. Company and its activities
Balance as at 01 January 2020 300,000,000 22,711,071 322,711,071 1.1 Legal status and nature of the company
Net Loss for the year - (3,151,197) (3,151,197) EBL Investments Ltd. (EBLIL/the Company), a full-fledged merchant bank and subsidiary of Eastern Bank Ltd., was incorporated in
Balance as at 31 December 2020 300,000,000 19,559,874 319,559,875 Bangladesh under the Companies Act, 1994 with the Registrar of Joint Stock Companies and Firms (RJSCF) on 30 December 2009
Balance as at 01 January 2019 300,000,000 33,499,442 333,499,442 vide registration no. C-81417/09 as a Private Ltd. Company. Besides, EBL Investments Ltd. obtained license on 27 January 2013 vide
BSEC registration no. MB-80/2013 as per the Bangladesh Securities and Exchange Commission (Merchant Banker and Portfolio
Net Loss for the year - (10,788,372) (10,788,372)
Manager) Rules, 1996 to carry out merchant banking operation in Bangladesh and on 04 August 2013 vide BSEC registration no.
Balance as at 31 December 2019 300,000,000 22,711,071 322,711,071
CDBL-DP-396 under the Depository (User) Regulations, 2003 to carry out depository functions.
The annexed notes from 1 to 27 form an integral part of these financial statements. EBL Investments Ltd. has achieved an unparalleled reputation as a leading Merchant Banker through providing portfolio
management services by maintaining a high level of professional expertise and integrity in client relationship. EBLIL's registered
office is located at Bangladesh Shipping Corporation Tower 2-3, Rajuk Avenue (4th Floor), Motijheel C/A, Dhaka-1000
1.2 Principal activities and nature of operation

Dhaka, Main activities of EBLIL include underwriting of securities, issue management, portfolio management, capital restructuring,
Managing Director (CC) Director Chairman corporate advisory services etc. EBLIL performs its portfolio management activities in two ways:
09 March 2021
(i) Investors Discretionary Account (IDA), where portfolio management operates as per clients' decisions;
EBL Investments Ltd. (ii) Management Discretionary Account (MDA), where portfolio management operates as per company's decisions by using client's money.

Statement of Cash Flows 2.

2.1
Basis of preparation and significant accounting policies
Statement of compliance
for the year ended 31 December 2020
Amount in BDT The financial statements have been prepared and the disclosures of information have been made in accordance with the Companies
Act, 1994. the Securities and Exchange Rules, 1987, International Accounting Standards (IASs), International Financial Reporting
Particulars 2020 2019
Standards (IFRSs) and other applicable laws and regulations.
A. Cash flows from operating activities 2.2 Other regulatory compliances
Net Loss during the year (3,151,197) (10,788,372)
As required, EBL Investments Ltd. also complies with the applicable provisions of the following major laws/ statutes:
Depreciation and Amortization 4,962,167 3,773,849
Decrease/ (increase) of Advances, Deposit & Prepayments (982,840) 22,511,708 - Securities and Exchange Commission Act, 1993;
Decrease/(increase) in Accounts Receivable 761,729 7,559,812 - Income Tax Ordinance, 1984;
(Decrease)/increase in Trade Payable 2,545,355 (8,530,955) - Income Tax Rules, 1984;
(Decrease)/increase in Provision for Tax 5,115,497 11,787,328
- Negotiable Instruments Act, 1881; and
Income tax paid (2,542,670) (4,673,025)
Increase/(decrease) in Other liabilities 43,919,832 2,297,909
- Other applicable laws and regulations.
Increase/(decrease) in Deferred Tax Liability (13,946,736) - 2.3 Basis of measurement
Increase/(decrease) in Lease Liability 2,048,193 -
The financial statements, except statement of cash flow, have been prepared on the accrual basis of accounting under the historical
Net cash flow from operating activities 38,729,331 23,938,255
cost convention.
B. Cash flows from investing activities 2.4 Functional and presentational currency
Received from/(issue) of Margin Loan 90,385,643 (46,273,374)
Investment in Securities 56,335,046 (8,344,023) These financial statements are presented in Bangladeshi Taka (BDT) which is the functional currency of the company. The amounts
Acquisition of Fixed Assets (6,641,150) (5,472,202) in these financial statements have been rounded off to the nearest integer.
Net cash flow from / (used in) investing activities 140,079,539 (60,089,599) 2.5 Components of Financial Statements
C. Cash flows from financing activities - -
-Statement of Financial Position
D. Net Increase/(Decrease) in Cash and Bank Balance (A+B+C) 178,808,870 (36,151,344) -Statement of Profit or Loss and Other Comprehensive Income
E. Unrealised Foreign Exchange Gain/Loss - - -Statement of Changes in Equity
F. Cash and Bank Balances at the beginning of the year 19,352,460 55,503,804 -Statement of Cash Flows
F. Cash and Bank Balances at the end of the year (D+E+F) 198,161,330 19,352,460
-Notes to the Financial Statements
The annexed notes from 1 to 27 form an integral part of these financial statements. 2.6 Use of estimates and judgments
Preparation of financial statements requires management to make judgments, estimates and assumptions that affect the reported
amount of assets and liabilities, income and expenses. These financial statements contained information about the assumptions
it made about the future and other major sources of uncertain estimation at the end of the reporting period that have a significant
risk of resulting in a material adjustment to the carrying amount of assets, liabilities, income and expenses within the next financial
Dhaka, year. In accordance with the guidelines as prescribed by IAS 37: Provisions, Contingent Liabilities and Contingent Assets, provisions
Managing Director (CC) Director Chairman
09 March 2021 are recognized in the following situation:

296 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 297
 Financial Reports
(i) When the company has an obligation as a result of past events, 3.2.3 Amortization

(ii) When it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and Amortization is calculated using the straight-line method to write down the cost of intangible asset to it's residual values at 15%.

(iii) Reliable estimates can be made of the amount of the obligation. 3.3 Impairment

2.7 Consistency The carrying value of the Company's assets other than inventories, are reviewed at closing date to determine whether there is
any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated. An impairment loss is
In accordance with the IFRS framework for the presentation of financial statements together with IAS 1 and IAS 8, EBL Investments
recognized whenever the carrying amount of the asset or its cash-generating unit exceeds its recoverable amount. Impairment
Ltd. applies the accounting disclosure principles consistently from one period to the next. Where selecting and applying new
losses, if any, are recognized in the Statement of Profit or Loss and Other Comprehensive Income.
accounting policies, changes in accounting policies, corrections of errors, the amounts involved are accounted for, retrospectively, in
accordance with the requirement of IAS 8. We, however, have applied the same accounting principles in 2020 as was for in financial 3.4 Statement of cash flows
statements for 2019. The Statement of Cash Flows shows changes in cash and bank balances during the financial year. It has reported cash flows during
2.8 Going concern the year classified by operational activities, investing activities and financing activities. It is prepared under indirect method in
accordance with IAS :7 Statement of Cash Flows .
The Company has adequate resources to continue in operation for the foreseeable future. For this reason the directors continue
to adopt going concern basis in preparing the financial statements. The current credit facilities and adequate resources of the 3.5 Cash and cash equivalents
company provide sufficient funds to meet the present requirements of its existing businesses and operations. Cash and cash equivalents include cash in hand, cash at bank and fixed deposits which are held and are available for use by the
2.9 Reporting period Company without any restriction. There is insignificant risk of change in the value of the above items.

The financial statements of the Company cover one (01) year from 01 January 2020 to 31 December 2020 and is followed consistently. 3.6 Margin loan to customer

3. Significant accounting policies EBL Investments Ltd. extends margin loan to the portfolio investors at an agreed ratio (between investors deposit and loan amount)
of purchased securities against the respective investor account. The investors are to maintain the margin as per set rules and
The accounting policies set out below have been applied consistently (otherwise as stated) to all periods presented in these financial
regulations. The margin is monitored on daily basis as it changes due to change in market price of shares. If the margin falls below
statements.
the minimum requirement, the investors are required to deposit additional fund to maintain margin as per rules otherwise the
3.1 Property, plant and equipment securities are sold to bring the margin to the required level.
3.1.1 Recognition and measurement 3.7 Investment in securities
Property, plant and equipment are stated at cost or revalued amount, if any, less accumulated depreciation in compliance with Investments in listed securities are recognized at cost. Quarterly impairment test is carried out by comparing cost with market
International Accounting Standard (IAS)-16: Property, Plant and Equipment. The cost of acquisition of an asset comprises its price. In case of diminution of market value compared to cost, provision is made on portfolio basis but no unrealized gain is booked
purchase price and any directly attributable cost of bringing the asset to its location and condition for its intended use inclusive of when market value exceeds cost.
inward freight, duties and non-refundable taxes.
3.8 Recognition and measurement of financial assets
3.1.2 Subsequent costs
In accordance with IFRS 9: Financial Instruments, financial assets may be recognized at fair value, with a gain or loss taken to the
The cost of replacing part of an item of property, plant and equipment are recognized in the carrying amount of the item if it is Statement of Profit or Loss and Other Comprehensive Income at net investment income. A financial asset or financial liability is
probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. classified as held for trading if it is acquired or incurred principally for the purpose of selling or repurchasing in the near term.
The costs of the day-to-day servicing of property, plant and equipment are recognized in the statement of profit or loss and other
3.9 Provision for income tax
comprehensive income as incurred.
Provision for income tax is made on the basis of company’s computation based on the best estimate of taxable profit in accordance
3.1.3 Depreciation & amortization
with Income Tax Ordinance, 1984.
Depreciation is charged using straight-line method on all assets of property, plant and equipment. Depreciation rates are as follows:
3.10 Revenue recognition
Nature of assets Rate of depreciation Revenue is recognized only when it is probable that the economic benefits associated with the transaction will flow to the enterprise
Furniture and fixtures 10% and in accordance with IFRS 15: Revenue from Contracts with Customers.
Office equipments 20%
3.10.1 Management fee
Motor vehicle 20%
Management fee is charged to IDA clients for rendering services like receipt of shares from brokers, delivery of shares to brokers,
Office decoration & other accessories 20%
custody of shares and collection of corporate entitlements etc. The fee is charged on daily market value of securities for IDA clients
Software & intangibles 15%
per annum and recognized as of accrual basis.
3.1.4 Disposal of fixed assets
3.10.2 Transaction/settlement fee
Gains or losses on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with
Transaction/Settlement fee is recognized as income when selling or buying order executed.
the carrying amount of the property, plant and equipment disposed off and is recognized net with 'Other Income' in the Statement
of Profit or Loss and Other Comprehensive Income. 3.10.3 Interest income from margin loan

3.2 Intangible assets Income from margin loan is recognized on accrual basis. Such income is calculated considering daily margin loan balance of the
respective customers. Income is recognized quarterly
Through online Mbank software the company maintains its books of accounts.
3.10.4 Dividend income and gain/(loss) on sale of marketable securities
3.2.1 Recognition and measurement
Dividend income is recognized when receive or payment right is established whereas profit or loss arising from the sale of securities
In accordance with IAS 38, an intangible asset is recognized if it is probable that the expected future economic benefits, which
is accounted for only when shares are sold in the market and profit is realized or loss is incurred.
are attributable to the asset, will flow to the company entity; and the cost of the assets can be measured reliably. In addition, it is
measured at cost less accumulated amortization and impairment loss, if any, in the Statement of Financial Position. 3.11 Leases

3.2.2 Subsequent expenditure EBLIL has applied IFRS 16: “Leases” for the first time with the date of initial application of 21 October 2020 using modified
retrospective approach where the company measured the lease liability at the present value of the remaining lease payments and
Subsequent expenditure on intangible assets is capitalized only when it increases the future economic benefits embodied in the
recognized a right-of-use asset at the date of the initial application on a lease by lease basis.
specific assets to which it relates.

298 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 299
 Financial Reports
EBLIL has capitalized the lease rental for it's 1 (one) admin building during the year. Subsequently before capitalization of the rental 3.1.6 Impact of COVID-19
payment EBLIL has considered the compliance criteria of IFRS 16 leases and applied accordingly. On 11 March 2020 the World Health Organization (WHO) declared a global pandemic due to Corona Virus related respiratory disease,
According to IFRS 16 Leases, a contract is, or contains, a lease if it conveys the right to control the use of an identified asset for a commonly known as COVID-19. To contain the spread of this disease, along with many other countries of the world, the Government
period of time in exchange for consideration. of Bangladesh has also taken a number of measures such as declaration of general holiday, enforcement of lock down, social
distancing, etc. As a result of these measures, all business and economic activities in the country have been adversely affected
Control is conveyed where the customer has both the right to direct the identified asset’s use and to obtain substantially all the
and this has also affected the Company. Although the business operation and profitability of the Company have been impacted
economic benefits from that use.
by COVID-19, but due to the constantly changing nature of the situation and lack of certainty at present regarding how long this
An asset is typically identified by being explicitly specified in a contract, but an asset can also be identified by being implicitly situation will prevail, the potential impact of COVID-19 related matters on the Company’s operation and financial results cannot be
specified at the time it is made available for use by the customer. reasonably assessed. The Management of the Company assessed the going concern and found no uncertainty regarding this for
Upon lease commencement, the company recognizes a right-of-use asset and a lease liability. The right-of-use asset is initially the upcoming 12 months due to COVID-19. Assessment of COVID-19 in relation to the following areas and the conclusion reached
measured at the amount of the lease liability plus any initial direct costs incurred by the company. Adjustments may also be required thereof is given below:
for lease incentives, payments at or prior to commencement and restoration obligations or similar. After lease commencement, the 3.16.1 Margin loan
company measures the right-of-use asset using a cost model. Under the cost model a right-of-use asset is measured at cost less
One of the principal activities of the company is providing corporate advisory service under which the company provides margin
accumulated depreciation and accumulated impairment.
loan to the clients. Although lockdown and restriction in movements imposed due to COVID-19 has affected margin loan in second
The lease liability is initially measured at present value of the future lease payments discounted using the discount rate implicit in quarter of 2020, the Company has managed to recover in the subsequent quarters.
the lease. Subsequently, the lease liability is adjusted for interest and lease payments, as well as the impact of lease modifications,
3.16.2 Operating income
amongst others.
The principal activities of the company is providing issue management service, corporate advisory service, portfolio management
On the statement of financial position, right-of-use assets have been included in non-current assets and lease obligations have been
services, trustee services to the clients. Due to bearish market condition and down economy, some clients did not avail the stated
included in current liabilities (to be paid in the next year) and non-current liabilities (net of current obligation) which is separately
services. Yet the company has been recovering the following periods.
disclosed.
3.16.3 Investment in shares
3.12 Earnings per share
Because of the pandemic situation, optimal investment opportunities has shrinked. Despite that the company has made some
Earnings Per Share (EPS) has been computed by dividing the Profit After Tax (PAT) by the number of ordinary share outstanding as
investment in profitable shares and mutual fund.
on 31 December 2020 as per IAS-33: Earnings Per Share.
3.16.4 Others
3.13 Income tax expenses
Management of the Company has assessed other areas of operations and found no significant impact of COVID-19 thereon.
Income tax expenses comprise current and deferred tax. Income tax expense is recognized in the Statement of Profit or Loss and Other
Comprehensive Income except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity. 3.17 General

3.13.1 Current tax i) Figures have been rounded off to the nearest integer.

Income tax expense is recognized in statement of Profit or Loss & Other Comprehensive Income. Current tax is the expected tax ii) Previous year's figures have been rearranged wherever considered necessary to conform to the current year's presentation.
payable on the total taxable income for the year using tax rates enacted or substantially enacted as of reporting date and any 3.18 Application of International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs)
adjustment to tax payable in respect of previous years. The Company is a full-fledged merchant bank as per Income Tax Law and The Financial Statements have been prepared in compliance with the requirement of IASs and IFRSs applicable in Bangladesh. EBL
provision for tax has duly been made. The rate of tax is 37.5%. Investments Ltd. applied following IASs and IFRSs:
3.13.2 Deferred tax Name of the IAS IAS No.
The company has recognized deferred tax using balance sheet method in compliance with the provisions of IAS 12: "Income Taxes". Presentation of Financial Statements 1
The company’s policy of recognition of deferred tax assets/ liabilities is based on temporary differences (taxable or deductible) Statement of Cash Flows 7
between the carrying amount (book value) of assets and liabilities for financial reporting purpose and its tax base, and accordingly, Accounting Policies, Changes in Accounting Estimates and Errors 8
deferred tax income/expenses has been considered to determine net profit after tax and earnings per share (EPS). Events after the Reporting Period 10
A deferred tax asset is recognized to the extent that it is probable that future taxable profit will be available, against which temporary Income Taxes 12
differences can be utilized. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer Property, Plant and Equipment 16
probable that the related tax benefit will be realized. Employee Benefits 19
Provisions, Contingent Liabilities and Contingent Assets 37
3.14 Provision for diminution in value of investments
Intangible Assets 38
Investment in quoted shares and un-quoted shares are revalued at the year end at market price and as per book value of last audited Name of the IFRS IFRS No.
statement of financial position. Provision should be made for any loss arising from diminution in value of investment. The company Financial Instruments: Disclosures 7
measures and recognizes investment in quoted and unquoted shares at cost if the year end market value and book value, for quoted
Financial Instruments 9
shares, are higher than the cost except investment in mutual fund. BSEC directive no. SEC/CMRRCD/2009-193/172 dated 30 June
Fair Value Measurement 13
2015 has been followed for mutual fund.
Revenue from Contracts with Customers 15
3.15 Events after the reporting period Leases 16
Events after the reporting period, also known as non-adjusting events, are disclosed in the notes when material as well as provide
additional information about the company's positions at the period end date.

300 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 301
 EBL Finance (HK) Limited

Financial Reports
4 Financial risk management
4.1 Credit risk Report of the Directors
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its The directors submit their report together with the audited financial statements for the year ended 31 December 2020.
contractual obligations and arises principally from the Company's loans and advances to customers and investment securities.
These loans and advances are fully backed by the securities held by the customer. Principal activities transactions, arrangements and contracts of significance in relation
With respect to credit risk arising from the other financial assets of the Company, the maximum exposure is equal to the carrying to the Company's business to which the Company, or a specified
amounts of the financial assets. The principal activity of the Company is engaged in money lending
undertaking of the Company, any one of its holding companies,
business .
4.2 Market risk its subsidiaries or fellow subsidiaries was a party and in which a
The Company's activities may give rise to risk at the time of settlement of transactions and trades. Market risk is the risk of losses Business review director of the Company had a material interest, whether directly
due to failure of entity to honor its obligations to deliver cash, securities or other assets as contractually agreed. or indirectly, subsisted at the end of the year or at any time during
Pursuant to section 388(3)(b) of the Hong Kong Companies
For such transactions the Company only allows the purchase of tradable securities if the customer has adequate cash/purchase the year.
Ordinance, the Company is a wholly owned subsidiary of another
power beforehand.
body corporate during the year. Accordingly, the Company is not Directors' interests in the shares and debentures of the Company
4.3 Liquidity risk
required to prepare a business review for the financial year ended
or any other body corporate
Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The company's approach 31 December 2020 as required by Schedule 5 of the Hong Kong
to managing liquidity (cash and cash equivalents) is to ensure, as far as possible, that it will always have sufficient liquidity to Companies Ordinance. At no time during the year was the Company, or a specified
meet its liabilities under both normal and stressed conditions without incurring unacceptable losses or damage to the company's
undertaking of the Company , any one of its holding companies, its
reputation. Typically, the company ensures that it has sufficient cash and cash equivalents to meet expected operational expenses, Financial performance
including financial obligations through preparation of the cash flow forecast based on time line of payment of the financial obligation subsidiaries or fellow subsidiaries a party to any arrangement to
and accordingly, arrange for sufficient liquidity/ fund to make the expected payment within due date. The financial performance of the Company for the year ended 31 enable the directors of the Company to acquire benefits by means
December 2020 and the financial position of the Company at that of acquisition of shares in or debentures of the Company or any
This note presents information about the Company's exposure to each of the above risks, the Company's objectives, policies and
date are set out on pages 6 and 7. other body corporate.
resources for measuring and managing risk, and the Company's management of capital. The Board of Directors (BOD) has overall
responsibility for the establishment and oversight of the Company's risk management framework. Details of dividend paid during the year are provided in note 9 to the
Management contracts
financial statements.
No contract concerning the management and administration of the
Charitable donations
whole or any substantial part of the business of the Company was
Donations made by the Company during the year amounted to entered into or existed during the year.
HK.$1,000.
Other matters
Directors
At the date of this report, the directors are not aware of any
The directors during the year and up to the date of this report were:- circumstances not otherwise dealt with in this report or financial

Eastern Bank Limited statements which would render any amount stated in the financial
Iftekhar Ali Reza Md statements misleading.

Events after the reporting period

In accordance with the Company's Articles of Association, all
directors are not subject to rotation or retirement at the annual
Details of significant events after the reporting period are provided
general meeting and are therefore continue in office at the
in note 17 to the financial statements.
forthcoming annual general meeting.

Directors' material interests in transactions, arrangements Auditor

and contracts that are significant in relation to the Company's
The financial statements have been audited by Kingston C.P.A.
business
Limited who retire and, being eligible, offer themselves for re-
Save as disclosed in note 15 to the financial statements, no other appointment at the forthcoming annual general meeting.

On behalf of the Board

For and on behalf of Eastern Bank Limited

Authorized Signature(s)
Chairman, Eastern Bank Limited
(Reptesented by Hassan O. Rashid)
Hong Kong, 27 January 2021.

302 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 303
 EBL Finance (HK) Limited
Independent Auditor's Report Statement of Comprehensive Income

Financial Reports
to the members of EBL Finance (HK) Limited year ended 31 December 2020
(Incorporated in Hong Kong with limited liability) 2020 2019
Particulars Notes
HK$ HK$
Opinion If, based on the work we have performed, we conclude that there is Revenue 4 26,422,695 41,354,186
a material misstatement of this other information, we are required Cost of sales (11,521,906) (16,792,041)
We have audited the financial statements of EBL Finance (HK) to report that fact. We have nothing to report in this regard. Gross profit 14,900,789 24,562,145
Limited ("the Company") set out on pages 6 to 23, which comprise Other income and net gains or (losses) 4 (108,426) 175,667
the statement of financial position as at 31 December 2020, and Responsibilities of directors and those charged with governance Operating expenses (5,450,437) (5,517,725)
Operating profit 5 9,341,926 19,220,087
the statement of comprehensive income, statement of changes for the Financial Statements Finance costs 6 (16,589) (14,065)
of in equity and statement of cash flows for the year then ended, Profit before taxation 9,325,337 19,206,022
and notes to the financial statements, including a summary of The directors are responsible for the preparation of financial Income tax 7
significant accounting policies. statements that give a true and fair view in accordance with HKFRSs (Under)/over provision in prior year (11,384) 28,720
issued by the HKICPA and the HKCO, and for such internal control Provision for the year (1,360,000) (2,970,000)
fu our opinion, the financial statements give a true and fair view as the directors determine is necessary to enable the preparation (l,371,384) (2,941,280)
of the financial position of the Company as at 31 December 2020, of financial statements that are free from material misstatement, Profit for the year 7,953,953 16,264,742
and of its financial performance and its cash flows for the year whether due to fraud or error. Other comprehensive income for the year, net of income - -
then ended in accordance with Hong Kong Financial Reporting Total comprehensive income for the year 7,953,953 16,264,742
Standards ("HKFRSs") issued by the Hong Kong fustitute of Certified In preparing the financial statements, the directors are responsible The annexed notes form an integral part of these financial statements.
Public Accountants ("HKICPA") and have been properly prepared in for assessing the Company's ability to continue as a going concern,
compliance with the Hong Kong Companies Ordinance ("HKCO"). disclosing, as applicable, matters related to going concern and EBL Finance (HK) Limited
using the going concern basis of accounting unless the directors
Basis for opinion either intend to liquidate the Company or to cease operations, or Statement of Financial Position
have no realistic alternative but to do so. as at 31 December 2020
We conducted our audit in accordance with Hong Kong Standards
on Auditing ("HKSAs") issued by the HKICPA. Our responsibilities Those charged with governance are responsible for overseeing the 2020 2019
under those standards are further described in the Auditor's Notes
Company's financial reporting process. HK$ HK$
Responsibilities for the Audit of the Financial Statements section
ASSETS AND LIABILITIES
of our report. We are independent of the Company in accordance Auditor's responsibilities for the audit of the Financial Statements Non-current assets
with the HKICPA's Code of Ethics for Professional Accountants ("the Property, plant and equipment 10 728,208 322,054
Code"), and we have fulfilled our other ethical responsibilities in Our objectives are to obtain reasonable assurance about whether Current assets
accordance with the Code. We believe that the audit evidence we the financial statements as a whole are free from material Bills financed 11 333,206,426 506,689,574
have obtained is sufficient and appropriate to provide a basis for misstatement, whether due to fraud or error, and to issue an Interest receivables 3,093,776 5,245,805
our op1mon. auditor's report that includes our opinion. Our responsibility to Deposits and prepayments 183,930 180,030
Cash and bank balances 62,149,357 24,373,038
express an opinion on these financial statements based on our 398,633,489 536,488,447
Other information audit is solely to you, as a body, in accordance with section 405 of the Current liabilities
HKCO, and for no other purpose. We do not assume responsibility Accruals and other payables 4,406,371 10,127,763
The directors are responsible for the other information. The Receipt in advance 310,015 886,018
towards or accept liability to any other person for the contents of
other information obtained at the date of this auditor's report is Loan from holding company - 494,949,000
this report. Reasonable assurance is a high level of assurance,
information included in the directors' report, but does not include Lease liabilities 12 457,054 192,209
the financial statements and our auditor's report thereon. but is not a guarantee that an audit conducted in accordance with Provision for taxation 17,060 4,114,675
HKSAs will always detect a material misstatement when it exists. Bank overdrafts 13 363,310,000 -
Misstatements can arise from fraud or error and are considered 368,500,500 510,269,665
Our opinion on the financial statements does not cover the
Net current assets 30,132,989 26,218,782
other information and we do not express any form of assurance material if, individually or in the aggregate, they could reasonably
Total assets less current liabilities 30,861,197 26,540,836
conclusion thereon. be expected to influence the economic decisions of users taken on Non-current liabilities
the basis of these financial statements. Lease liabilities 12 198 779 -
In connection with our audit of the financial statements, our Net assets 30 ,662 ,418 26 ,540,836
responsibility is to read the other information and, in doing so, A further description of our responsibilities for the audit of the EQUITY
financial statements is located at the HKICPA's website at: Capital and reserves
consider whether the other information is materially inconsistent
Issued and fully paid-up capital (1,410,000 ordinary shares) 11,410,000 11,410,000
with the financial statements or our knowledge obtained in the Retained profits 19,252,418 15,130,836
audit, or otherwise appears to be materially misstated. http://www.hkicpa.org.hk/file/media/section6_standards/ Total equity 30.662,418 26,540,836
standards/Audit-n-assurance/auditre/fs_pf.pdf
This description forms part of our auditor's report. Approved and authorised for issue by the board of directors on 27 January 2021

On behalf of the Board

For and on behalf of Eastern Bank Limited

Kingston C.P.A. Limited

Certified Public Accountants, Hong Kong
Auditor, LAW Hoi Kit; P.C. No. P06627 Director Director
27January 2021 Eastern Bank Limited Iftekhar Ali Reza Md
(Represented by Hassan O. Rashid)
The annexed notes form an integral part of these financial statements.
304 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 305
EBL Finance (HK) Limited
EBL Finance (HK) Limited
Statement of Changes in Equity

Financial Reports
year ended 31 December 2020 Notes to the Financial Statements
31 December 2020
Share Capital Retained profits Total
Particulars 1. Organisation and operations
HK$ HK$ HK$
Balance at 1 January 2019 1,410,000 17,449,317 18,859,317 The Company is a private company incorporated in Hong Kong with limited liability. The address of its registered office is Unit 1201,
Capitalization of profits 10,000,000 (10,000,000) - 12th Floor, Albion Plaza, 2-6 Granville Road, Tsimshatsui, Hong Kong.The principal activity of the Company is engaged in money
Net profit for the year - 16,264,742 16,264,742 lending business.
Other comprehensive income - - - 2. Application of new and revised Hong Kong Financial Reporting Standards
Dividend (Note 9) - (8,583,223) (8,583,223)
Balance at 31 December 2019 11,410,000 15,130,836 26,540,836 The financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards
("HKFRSs"), accounting principles generally accepted in Hong Kong and the requirements of the Hong Kong Companies Ordinance.
Net profit for the year - 7,953,953 7,953,953
Other comprehensive income - - - In the current year, the Company has applied for the first time a number of new standards, amendments and interpretations ("new
Dividend (Note 9) - (3,832,371) (3,832,371) HKFRSs") issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"), which are effective for accounting periods
Balance at 31 December 2020 11,410,000 19,252.418 30,662 ,418 beginning on or after IJanuary 2020 with the exception as stated in the following paragraph . The adoption of the new HKFRSs had
no material effect on how the results and financial position for the current or prior accounting periods have been prepared and
The annexed notes form an integral part of these financial statements. presented. Accordingly, no prior period adjustment has been required.
The Company has not early applied the following new standards, amendments or interpretations that have been issued and
relevant to the Company but are not yet effective. The directors of the Company anticipate that the application of these standards,
EBL Finance (HK) Limited amendments or interpretations will have no material impact on the results and the financial position of the Company .

Statement of Cash Flows HKFRS 3, HKAS 16 and HKAS 37

HKAS 37 (Amendment)
Narrow-scope amendments2
Onerous Contracts - Cost of Fulfilling a Contract2
year ended 31 December 2020
Annual Improvements Project Annual Improvements to HKFRSs 2018 - 2020 Cycle2
HKAS I Classification of Liabilities as Current or Non-current3
2020 2019
Particulars HKFRS 16 COVID-19-Related Rent Concessions1
HK$ HK$ HKAS 28 and HKFRS I0 (Amendment) Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 4
Operating activities 1
Effective for annual periods beginning on or after 1 June 2020.
Profit before taxation 9,325,337 19,206,022 2
Effective for annual periods beginning on or after 1 January 2022.
Adjustment for: 3
Effective for annual periods beginning on or after 1 January 2023.
Interest expense 11,521,906 16,792,041 4
Effective for annual periods beginning on or after a date to be determined.
Depreciation 509,489 507,335
Interest on lease liabilities 16 589 14 065 3. Significant accountjng policies
(a) Statement of compliance
Operating cash flows before working capital changes 21,373,321 36,519,463
Decrease in bills financed 173,483,148 58,693,194 The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards issued by the HKICPA.
Decrease in interest receivables 2,152,029 3,812,040 Inaddition, the financial statements include applicable disclosures required by the Hong Kong Companies Ordinance.
Increase in deposits and prepayments (3,900) (1,830) (b) Basis of preparation of financial statements
Decrease in accruals and other payables (5,721,392) (469,785) The financial statements have been prepared under the historical cost convention, as modified by the financial assets at fair value
Decrease in receipts in advance (576,003) (279,652) through other comprehensive mcome, fmancial assets and financial liabilities at fair value through profit or loss. The financial
Decrease in loan from holding company (494,949,000) (65,737,500) statements have also been prepared under the accrual basis of accounting.
Cash (used in)/generated from operations (304,241,797) 32,535,930 (c) Property, plant and equipment
Tax paid (5,468,999) -
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation
Interest paid (11,521,906) (16,792,041) is provided to write off the cost of items of property, plant and equipment over their estimated useful lives and after taking into
Net cash (used in)/generated from operating activities (321,232,702) 15,743,889 account of their estimated residual value, using the straight-line method. Assets held under finance leases are depreciated over
Net cash used in from investing activities their expected useful lives on the same basis as owned assets or, where shorter, the term of the relevant lease.
Payments to acquire property, plant and equipment (3,638) (100,257) The useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. The principal annual rates are as follows:-
Financing activities Properties leased for own use Over the unexpired lease term
Capital element of lease rental paid (448,381) (441,935) Machineries and equipments 20% - 33.33%
Dividend paid (3,832,371) (8,583,223) Furniture and fixtures 20%
Interest on lease liabilities (16,589) (14,065)
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise
Net cash used in financing activities (4,297,341) (9,039,223) from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the
Net (decrease)/increase in cash and cash equivalents (325,533,681) 6,604,409 net disposal proceeds and the carrying amount of the item) is included in the statement of comprehensive income in the year in
Cash and cash equivalents at beginning of year 24,373,038 17,768,629 which the item is derecognised.
Cash and cash equivalents at end of year (301.160,643) 24.373.038
(d) Leased assets
Analysis of cash and cash equivalents at end of year
Bank balances 62,149,357 24,373,038 At inception of a contract, the Company assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if
Bank overdrafts (363,310,000) - the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control
(301, 160,643) 24,373,038 is conveyed where the customer has both the right to direct the use of the identified asset and to obtain substantially all of the
economic benefits from that use.
The annexed notes form an integral part of these financial statements.

306 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 307
 Financial Reports
At the lease commencement date, the Company recognises a right-of-use asset and a lease liability, except for short-term leases
(i) Bills financed and interest receivables
that have a lease term of 12 months or less and leases of low-value assets. When the Company enters into a lease in respect of a
low-value asset, the Company decides whether to capitalise the lease on a lease-by-lease basis. The lease payments associated with Bills financed and interest receivables are recognised initially at fair value and subsequently measured at amortised cost using the
those leases which are not capitalised are recognised as an expense on a systematic basis over the lease term. effective interest method, less provision for impairment. A provision for impairment of bills financed and interest receivables is
established when there is objective evidence that the Company will not be able to collect all amounts due according to the original
Where the lease is capitalised, the lease liability is initially recognised at the present value of the lease payments payable over the terms of receivables. The amount of the provision is the difference between the asset's carrying amount and the present value of
lease term, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, using a relevant estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised in profit or loss.
incremental borrowing rate.
(j) Other payables
After initial recognition, the lease liability is measured at amortised cost and interest expense is calculated using the effective
interest method. Variable lease payments that do not depend on an index or rate are not included in the measurement of the lease Other payables are recognised initially at fair value and subsequently stated at amortised cost. The difference between the proceeds
liability and hence are charged to profit or loss in the accounting period in which they are incurred. and the amount payable is recognised over the period of the payable using the effective interest method.
The right-of-use asset recognised when a lease is capitalised is initially measured at cost. The right-of-use asset is subsequently (k) Foreign currencies
stated at cost less accumulated depreciation and impairment losses. (i) Functional and presentation currency
(e) Financial instruments Items included in the Company's financial statements are measured using the currency of the primary economic environment in
Classification of financial assets and financial liabilities which it operates (the "functional currency"). These financial statements are presented in Hong Kong dollar, which is the Company's
Financial assets are categorised into three principal classification categories: measured at amortised cost, at fair value through functional and presentation currency.
other comprehensive income ("FVOCI") and at fair value through profit or loss ("FVPL"). The classification of financial assets is based (ii) Transactions, assets and liabilities
on the business model under which the financial asset is managed and its contractual cash flow characteristics.
Transactions in foreign currencies are translated at the approximate rates ruling on the dates of the transactions. Monetary assets
Financial liabilities are categorised into two principal classification categories: measured at amortised cost, and at fair value and liabilities denominated in foreign currencies are translated at the approximate rates ruling at the end of reporting period.
through profit or loss ("FVPL"). Exchange gains or losses are recognised in profit or loss.
(f) Credit losses and impairment of assets (l) Employee retirement benefits
(i) Credit losses Costs of employee retirement benefits are recognised as an expense in the year in which they are incurred.
The Company recognised a loss allowance for expected credit losses ("ECLs") on the financial assets measured at amortised cost (m) Related parties
(including cash and cash equivalents, bills and other receivables and deposits). Two parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise
Measurement of ECLs significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if
they are subject to common control or common significant influence.
ECLs are probability-weighted estimate of credit losses. Credit losses are measured as the present value of all expected cash
shortfalls (i.e. the difference between the cash flows due to the company in accordance with the contract and the cash flows that (n) Revenue recognition
the company expects to receive).
Revenue is recognised when it is possible that the economic benefits will flow to the Company and when the revenue can be
The maximum period considered when estimating ECLs is the maximum contractual period over which the company is exposed measured reliably on the following bases:-
to credit risk. (i) Interest income is recognised on a time proportion basis.
ECLs are remeasured at each reporting date to reflect changes in the financial instrument's credit risk since initial recognition. Any (ii) Fees, commission and charges on letter of credit are recognised when the services are rendered.
change in the ECL amount is recognised as an impairment gain or loss in profit or loss. The Company recognises an impairment
gain or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance 4. Revenue, other income and net gains or (losses)
account, except for investments in debt securities that are measured at FVOCI (recycling), for which the loss allowance is recognised Revenue represents interest income on bills financed; fees, commission and charges on letter of credit.
in other comprehensive income and accumulated in the fair value reserve (recycling). Revenues recognised during the year are as follows:-
(ii) Impairment of other non-current assets
2020 2019
At the end of each reporting period, the Company reviews the carrying amounts of its tangible assets to determine whether there HK$ HK$
is any indication that those assets have suffered an impairment loss. If the recoverable amount of an asset is estimated to be less
Revenue
than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised
immediately in profit or loss. Interest income on bills financed 19,488,279 29,735,186
Fees, commission and charges on letter of credit 6,934,416 11,619,000
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its 26,422,695 41,354,186
recoverable amount, in such a way that the increased carrying amount does not exceed the carrying amount that would have been Other income and net gains or (losses)
determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised
Net exchange gain (108,426) 175,667
immediately in profit or loss.
Total revenues 26,314,269 41,529,853
(g) Cash and cash equivalents
Cash and cash equivalents include cash at bank and on hand, short-term deposits held at banks, other short-term highly liquid 5. Operating profit
investments with original maturities of three months or less. Operating profit is stated after charging:-
Auditor's remuneration 95,500 74,000
(h) Taxation
Depreciation 509,489 507,335
Income tax expense represents the sum of the tax currently payable and deferred tax. Retirement benefit costs 93,923 107,336
The tax currently payable is based on taxable profit for the year, using tax rates enacted or substantively enacted at the end of Salaries and allowances 3,702,602 3,450,713
reporting period, and any adjustment to tax payable in respect of previous year. Variable lease payments not included in the measurement of lease liabilities 136,627 116,067
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax base used in the computation of taxable profit. Deferred tax liabilities are generally recognised 6. Finance costs
for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will Interest on lease liabilities 16,589 14,065
be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the
temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and 7. Taxation
liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
Deferred tax is recognised in profit or loss, except when it relates to items that are recognised in other comprehensive income or charged (a) Hong Kong Profits Tax is calculated at 8.25% of the first HK$2 million of the estimated assessable profits and at 16.5% for the
directly in equity, in which case the deferred tax is also recognised in other comprehensive income or directly in equity respectively. estimated assessable profits above HK$2 million (2019: 8.25% to 16.5%).

308 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 309
 Financial Reports
(b) No provision for deferred taxation has been made in the financial statements as there are no material deductible and taxable 12. Lease liabilities
temporary differences needed to be accounted for in the year. The following table shows the remaining contractual maturities of the Company's lease liabilities at the end of the current and
8. Directors' emoluments previous reporting periods and at the date of transaction to HKFRS 16:-

During the years ended 31 December 2020 and 2019, no amounts have been paid in respect of directors' emoluments, directors' or 31 December 2020 1 January 2019
Present value Total minimum Present value Total minimum
past directors' retirement benefits or for any compensation to directors or past directors in respect of loss of office.
of the minimum lease payments of the minimum lease payments
Save as disclosed in note 15 to the financial statements, no other significant transactions, arrangement and contracts to which the lease payments lease payments
Company, or a specified undertaking of the Company, any one of its holding companies, its subsidiaries or fellow subsidiaries was a HK$ HK$ HK$ HK$
party and in which a director of the Company had a material interest, whether directly or indirectly, subsisted at the end of the year Whitin 1 year 457,054 471,600 192,209 193,800
or at any time during the year. After 1 year but within 2 years 198,779 200,430 - -
After 2 years but within 5 years - - - -
Except for the aforementioned transaction, no other significant transactions, arrangement and contracts to which the Company, or a specified
After 5 years - - - -
undertaking of the Company, any one of its holding companies, its subsidiaries or fellow subsidiaries was a party and in which a director of
198,779 - - -
the Company had a material interest, whether directly or indirectly, subsisted at the end of the year or at any time during the year. 655,833 672,030 192,209 193,800
2020 2019 Less: Total future interest expenses (16,197) (1,591)
HK$ HK$ Present value of lease liabilities 655,833 192,209

9. Dividends 13. Bank overdrafts

Final dividend for 2019 declared and paid of HK$0.094 (2019: HK$0.41) per share 132,371 583,223 The general banking facilities are secured by the corporate guarantee from holding company.
1st interim dividend for 2020 declared and paid of HK$2.62 (2019: HK$3.14) per share 3,700,000 4,400,000 14. Financial instruments
2nd interim dividend for 2020 declared and paid of HK$Nil (2019: HK$2.55) per share - 3,600,000
The carrying amounts of each of the following categories of financial assets and financial liabilities at the end of the reporting period
3,832,371 8,583,223
are set out as follows:-
2020 2019
10. Property, plant and equipment HK$ HK$
Properties leased Machineries Furniture Financial assets
for own use and equipments and fixtures Total Financial assets at FVPL - -
Equity instruments at FVOCI
HK$ HK$ HK$ HK$
Cost Financial assets at amortised cost 398,633,489 536,488,447
At 1 January 2019 - 167,636 306,779 474,415 Financial liabilities
Impact on initial application of HKFRS 16 634,144 - - 634,144 Financial liabilities at FVPL
Financial liabilities at amortised cost 368,043,446 510,077,456
Additions - 44,108 56,149 100,257
Disposals - (44,610) - (44,610)
At 31 December 2019 634,144 167,134 362,928 1,164,206 15. Related party transactions
Additions 912,005 - 3,638 915,643 During the year, the Company had the transaction with a related party in the normal course of business:-
Disposals (634,144) - - (634,144) Type of transaction Related party Relationship Connected directors 2020 2019
At 31 December 2020 912,005 167,134 366,566 1,445,705 HK$ HK$
Accumulated depreciation Interest expense Eastern Bank Limited Holding company and director Iftekhar Ali Reza Md 11,521,906 16,792,041
At 1 January 2019 - 134,376 245,051 379,427
Provided for the year 445,013 29,968 32,354 507,335 16. Financial risk management
Disposals - (44,610) - (44,610) The Company is exposed to various kinds of risks in its operation and financial instruments. The Company's risk management
At 31 December 2019 445,013 119,734 277,405 842,152 objectives and policies mainly focus on minimising the potential adverse effects of these risks on the Company by closely monitoring
Provided for the year 451,333 24,295 33,861 509,489 the individual exposure as follows:-
Eliminated on disposals (634,144) - - (634,144) (a) Market risk
At 31 December 2020 262,202 144,029 311,266 717,497
(i) Currency risk
Carrying amounts
At 31 December 2020 649,803 23,105 55,300 728,208 (1) The Company receives its interest income and service fee and pays loan from holding company and interest expenses,
At 31 December 2019 189,131 47,400 85,523 322,054 mainly in US dollar, that exposes it to foreign currency risk arising from such purchases and sales and the resulting
payables and receivables. The Company closely and continuously monitors the exposure as follows:-
2020 2019 Since HK dollar is pegged to US dollar, there is no significant exposure expected on US dollar transactions and
HK$ HK$ balances.
11. Bills financed
The following is the aging analysis of bills financed at the end of the reporting period:- (2) Sensitivity analysis

0-3 months 188,928,796 327,084,469 As the net exposure of the Company to foreign currency is relatively small, change in foreign currency exchange rate
4-6 months 131,165,263 153,147,103 will have no material impact on the financial performance of the Company.
7-9 months 7,809,300 11,440,302 (ii) Interest rate risk
10-12 months 5,303,067 3,952,055 The Company's exposure to interest rate risk is mainly on its interest-bearing borrowings. In order to manage the interest
Over 12 months - 11,065,645 rate risk, the Company will repay the corresponding borrowings when it has surplus funds.
333,206,426 506,689,574
(iii) Price risk
There is no significant price risk as the Company does not have any investment traded in an active market.

310 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 311
 EBL Asset Management Ltd.

Financial Reports
(b) Credit risk
The major exposure to credit risk of the Company's financial assets, which comprise bills financed, interest receivables,
deposits and prepayments, and bank balances, arises from the default of the counterparties, with a maximum exposure equal Independent auditor’s report
to the carrying amount of these financial assets in the statement of financial position. to the shareholders of EBL Asset Management Ltd.
(c) Liquidity risk
The Company's exposure to the risk of liquidity is minimal, as the shareholders of the Company finance sufficient funds to meet Report on the audit of the Financial Statements
the Company's continuous operation need.
The maturity profile of all financial liabilities of the Company as at the end of the reporting period, based on the contracted Opinion
undiscounted payments, was as follows:-
We have audited the financial statements of EBL Asset Management Ltd. which comprise the statement of financial position as at 31
2020 2019 December 2020, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows
HK$ HK$ for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory
Due and payable
information.
0-3 months 368,156,323 9,427,372
4-6 months 113,796 500,842,293
In our opinion, the accompanying financial statements give a true and fair view, in all material respects, of the financial position of the
7-9 months 114,723 -
10-12 months 115,658 - Company as at 31 December 2020, and of its financial performance and its cash flows for the year then ended in accordance with International
Over 12 months 198,779 - Financial Reporting Standards (IFRSs).
Total current and non-current liabilities 368.699,279 510,269,665
Basis for opinion
(d) Fair value
The Company's financial instruments are carried at amounts not materially different from their fair values as at 31 December 2020. We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are
17. Events after the reporting period further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of
the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Bangladesh, and we
After the outbreak of the Coronavirus Disease 2019 ("COVID-19 outbreak") in early 2020, a series of precautionary and control
have fulfilled our other ethical responsibilities in accordance with the requirements. We believe that the audit evidence we have obtained is
measures have been and continued to be implemented in Hong Kong. The Company will pay close attention to the development of
sufficient and appropriate to provide a basis for our opinion.
the COVID-19 outbreak and evaluate its impact on the financial position and operating results of the Company.
18. Immediate and ultimate holding company Other information
The directors regard Eastern Bank Limited, a company incorporated in Bangladesh, as being the immediate and ultimate holding company.
Management is responsible for the other information. The other information comprises the information included in the director’s reports,
19. Critical accounting estimates and judgement but doesn’t include the financial statements and our auditor’s report thereon. The director’s reports are expected to be made available to us
The preparation of these financial statements requires management to make judgements, estimates and assumptions that affect the after the date of this auditor’s report.
application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions
Our opinion on the financial statements does not cover other information and we do not express any form of assurance conclusion thereon.
are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results
of which form the basis of making the judgements about carrying values of assets and liabilities that are readily apparent from In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes
other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. Actual results may differ from these available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge
estimates. obtained in the audit or otherwise appears to be materially misstated.
Judgements made by management have no significant effect on the financial statements. Revisions to accounting estimates are
recognised in the period which the estimates are revised and in any future periods affected. When we read the director’s reports, there is a material misstatement therein, we are required to communicate the matter to those charged
with governance.

Responsibilities of management and those charged with governance for the Financial Statements and Internal Controls

Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs, the Companies
Act 1994, the Securities and Exchange Rules 1987 and other applicable laws and regulations and for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud
or error.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either
intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor’s responsibilities for the audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements.

312 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 313
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. EBL Asset Management Limited
We also:

Financial Reports
 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
Statement of Financial Position
as at 31 December 2020
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Amount in BDT
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Notes 2020 2019
ASSETS
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
Non-Current Assets
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Property, plant and equipment 4 3,821,765 4,976,869
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made Investment in EBL AML 1st Unit Fund at Market Price 5 54,300,000 -
Deferred Tax Asset 11 491,779 -
by management.
58,613,544 4,976,869
Current Assets
 Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
Investment in shares at Market Price 5 38,745,854 65,466,007
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability
Accounts receivable 6 1,031,198 11,267,587
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report Loan and advances 7 - 155,000,000
to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are Advance Income Tax 8 2,020,992 7,035,510
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company Cash and bank balances 190,758,796 51,392,557
to cease to continue as a going concern. Cash in hand 5,887 3,442
Bank balance 9 190,752,909 51,389,115
 Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial Unrestricted 9.1 190,752,909 1,389,115
statements represent the underlying transactions and events in a manner that achieves fair presentation. Restricted for EBL AML 1st Unit Fund 9.2 - 50,000,000
Advance & Prepayments 10 1,924,720 -
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and Total Current Assets 234,481,559 290,161,661
significant audit findings, including any significant deficiencies in internal control that we identify during our audit. TOTAL ASSETS 293,095,103 295,138,530
EQUITY AND LIABILITIES
Report on other legal and regulatory requirements Shareholders’ Equity
Share capital 12 250,000,000 250,000,000
We also report that the financial statements comply with the Companies Act 1994, the Securities and Exchange Rules 1987 and the other Retained earnings 13 33,103,611 15,326,103
applicable laws and regulations. We, as required by law, further report that: 283,103,611 265,326,103
Non-Current Liabilities
a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes
Lease liability net off current maturity 14 573,521 2,301,373
of our audit and made due verification thereof;
Current Liabilities
b) in our opinion, proper books of accounts as required by law have been kept by the Company so far as it appeared from our examination Current portion of lease liability 14 2,159,001 1,722,423
of these books; and Accounts payable 15 4,393,027 522,500
Provision for diminution value in investment - 14,828,779
c) the statements of financial position and statement of profit or loss and other comprehensive income dealt with by the report are in Provision for tax 16 2,865,941 10,437,352
Total Current Liabilities 9,417,969 27,511,054
agreement with the books of accounts.
Total Liabilities 9,991,493 29,812,427
TOTAL EQUITY AND LIABILITIES 293,095,103 295,138,530

The annexed notes from 1 to 23 form an integral part of these Financial Statements.
Signed for and on behalf of
ACNABIN
Dhaka, Chartered Accountants
10 February 2021

Managing Director (CC) Director Chairman

Md Moniruzzaman FCA
Partner This is the statement of financial position referred to in our separate report of even date.
ICAB Enrollment No. 787
DVC: 2103290787AS709728 Signed for and on behalf of
ACNABIN
Dhaka, Chartered Accountants
10 February 2021

Md Moniruzzaman FCA
Partner
ICAB Enrollment No. 787
DVC: 2103290787AS709728

314 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 315
EBL Asset Management Limited EBL Asset Management Limited

Statement of Changes in Equity

Financial Reports
Statement of Profit or Loss and Other Comprehensive Income
for the year ended 31 December 2020 year ended 31 December 2020
Amount in BDT
Particulars Share Capital Share Money Deposit Retained Earnings Total Equity
Balance as at 01 January 2020 250,000,000 - 15,326,103 265,326,103
Particualrs Notes 2020 2019
Net Profit for the year - - 17,680,495 17,680,495
Operating Income Prior Period's Adjustment - - 97,012 97,012
Interest income 17 14,397,124 20,684,637 Balance as at 31 December 2020 250,000,000 - 33,103,611 283,103,611
Investment income 18 2,279,666 6,139,991
Income from Unit Fund 19 3,883,793 - Balance as at 01 January 2019 250,000,000 - 14,722,527 264,722,527
Unrealized loss 20 (4,999,882) - Net Profit for the year - - 603,576 603,576
Total operating income 15,560,701 26,824,628 Balance as at 31 December 2019 250,000,000 - 15,326,103 265,326,103
General and administrative expenses 21 (10,403,517) (9,056,746)
The annexed notes from 1 to 23 form an integral part of these Financial Statements.
Finance and other cost 22 (240,553) (346,050)
Total operating expense (10,644,070) (9,402,796)
Operating profit 4,916,631 17,421,832
Writeback/(provision) for diminution in value of investment 14,828,779 (12,146,080)
Profit before income tax 19,745,410 5,275,752 Dhaka,
10 February 2021 Managing Director (CC) Director Chairman
Current tax (2,556,694) (4,672,176)
Deferred tax (income)/expense 491,779 -
Income tax expenses 23 2,064,915 (4,672,176) EBL Asset Management Limited

Statement of Cash Flows

Net profit for the year 17,680,495 603,576
Other comprehensive income - -
Total comprehensive income 17,680,495 603,576 year ended 31 December 2020 Amount in BDT

Earnings Per Share (EPS) 7.07 0.24 Particualrs 2020 2019

A. Cash Flows from Operating Activities:
Net Profit during the year 17,680,495 603,576
The annexed notes from 1 to 23 form an integral part of these Financial Statements. Depreciation 2,118,786 1,951,249
Provision for diminution of investment (9,828,896) 12,146,080
Decrease in Account Receivables 10,236,389 1,001,703
Increase / (Decrease) in Account Payables 3,870,527 (7,500)
Increase in other asset (1,924,720) -
Income tax expense 2,064,915 4,672,176
Income tax paid (5,113,587) (5,367,840)
Prior period's adjustments (325,326) -
Managing Director (CC) Director Chairman Net cash flows from operating activities 18,778,584 14,999,444
B. Cash flows from Investing Activities:
This is the statement of profit or loss and other comprehensive income referred to in our separate report of even date. Decrease / (Increase) in investment in securities 17,420,271 (27,617,476)
Investment in EBLAML 1st Unit Fund (50,000,000) -
Signed for and on behalf of Acquisition of property, plant & Equipment (69,125) (142,469)
ACNABIN Receipt against loan 155,000,000 52,000,000

Dhaka, Chartered Accountants Net cash flows from investing activities 122,351,146 24,240,055
10 February 2021 C. Cash flows from financing activities
Issue of share capital - -
Payment of Lease Liability (1,763,493) (1,623,489)
Md Moniruzzaman FCA Share money deposit - -
Net cash used in financing activities (1,763,493) (1,623,489)
Partner
ICAB Enrollment No. 787 D. Net increase in Cash and Bank Balances (A+B+C) 139,366,237 37,616,010
DVC: 2103290787AS709728 E. Unrealised foreign exchange gain/ loss - -
F. Cash and Bank Balances at the begining of the year 51,392,557 13,776,547
G. Cash and Bank Balances at the end of the year (D+E+F)* 190,758,796 51,392,557
*Cash and Bank Balances consists of -
Cash in hand 5,887 3,442
Balances with other banks and financial institutions 190,752,909 51,389,115
190,758,796 51,392,557
The annexed notes from 1 to 23 form an integral part of these Financial Statements.

Dhaka,
10 February 2021 Managing Director (CC) Director Chairman

316 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 317
EBL Asset Management Limited

Financial Reports
2.7 Going concern

Notes to the Financial Statements The Company has adequate resources to continue in operation for the foreseeable future. For this reason the directors continue
to adopt going concern in preparing the financial statements. The current credit facilities and adequate resources of the company
as at and for the year ended 31 December 2020 provide sufficient funds to meet the present requirements of its existing businesses and operations.
2.8 Reporting period
1. Company and its activities
The financial period of the Company covers one year from 01 January 2020 to 31 December 2020.
1.1 Legal status and nature of the company
3. Significant accounting policies
EBL Asset Management Ltd. (here-in-after referred to as 'EBLAML' or “the Company”) was incorporated in Bangladesh with the
Registrar of Joint Stock Companies (RJSC) vide registration no. C-89481/11 dated 9th January 2011 as a Private Ltd. Company, The financial statements have been prepared on a going concern basis under the historical cost convention in accordance with
Ltd. by shares under the Companies Act, 1994 and got license from Bangladesh Securities Exchange Commission (BSEC) on 25th International Financial Reporting Standards (IFRSs).
May 2017 for full-fledged asset management operation. It is a subsidiary company of Eastern Bank Limited (EBL). EBL holds all the 3.1 Property, plant and equipment
shares of the company except 1 share which is held by one individual. The registered office of the company is situated in Bangladesh.
3.1.1 Recognition and measurement
1.2 Nature of the business activities
Property, plant and equipment are measured at cost less accumulated deprecation. Cost includes expenditures that are directly
The main objectives of the company is to carry out the business of Asset Management, Portfolio Management, Fund Management,
attributable to the acquisition of the property, plant and equipment. Full month’s depreciation has been charged on additions
Capital Market Operation, Other Financial Services including Corporate Advisory Services, Merger & Acquisition, Equity Investment,
irrespective of date when the related assets are put into use and no depreciation is charged for the month of disposal. Depreciation
Corporate Restructuring, Financial & Socio - Economic Consultancy, Corporate Research & Project Studies, Privatization and other
is providing at the rearranged/re-fixed following rates on straight-line IAS is in accordance with IAS 16 over the periods appropriate
related services in Bangladesh and overseas.
to the estimated useful lives of the different types of assets. The new rate of depreciation considering estimated useful lives of the
2. Basis of preparation and significant accounting policies assets, the shortfall amount if necessary, have been charged during the period.
2.1 Statement of compliance 3.1.2 Subsequent costs
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) covering The cost of replacing part of an item of property, plant and equipment are recognised in the carrying amount of the item if it is
International Accounting Standards (IASs), the Companies Act, 1994 and other applicable laws and regulations of Bangladesh. probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably.
The costs of the day-to-day servicing of property, plant and equipment are recognised in the statement of Profit or Loss and other
2.2 Other regulatory compliance
Comprehensive Income.
As required, EBL Asset Management Ltd. also complies with the applicable provisions of the following major laws/ statutes:
3.1.3 Depreciation & Amortization
-Securities and Exchange Rules, 1987;
Depreciation on property, plant and equipment is charged using reducing method on all assets. Depreciation rates are as follows:
-Securities and Exchange Commission Act, 1993;
Nature of Assets Rate of Depreciation
-Income Tax Ordinance, 1984;
Furniture & Fixture 10%
-Income Tax Rules, 1984;
Machinery and Equipment 20%
-Negotiable Instruments Act, 1881; and
-Other applicable laws and regulations. 3.1.4 Right of use assets (Leasehold assets)
2.3 Basis of measurement EBL Asset Management Limited implemented IFRS-16 "Leases" for the first time in 2019 to comply with the recent changes in IFRSs.
These financial statements have been prepared on a going concern basis under the historical cost convention in accordance with According to IFRS 16 Leases, a contract is, or contains, a lease if it conveys the right to control the use of an identified asset for a
International Financial Reporting Standards (IFRSs). period of time in exchange for consideration.
2.4 Components of financial statements Control is conveyed where the customer has both the right to direct the identified asset’s use and to obtain substantially all the
economic benefits from that use.
-Statement of Financial Position
-Statement of Profit or Loss and Other Comprehensive Income An asset is typically identified by being explicitly specified in a contract, but an asset can also be identified by being implicitly
specified at the time it is made available for use by the customer.
-Statement of Changes in Equity
-Statement of Cash Flows Upon lease commencement the Company recognizes a right-of-use asset and a lease liability. The right-of-use asset is initially
-Notes to the Financial Statements measured at the amount of the lease liability plus any initial direct costs incurred by the Company. Adjustments may also be required
for lease incentives, payments at or prior to commencement and restoration obligations or similar. After lease commencement, the
2.5 Functional and presentational currency Company measures the right-of-use asset using a cost model. Under the cost model a right-of-use asset is measured at cost less
These financial statements are presented in Bangladeshi Taka (BDT) which is the functional currency of the company. The amounts accumulated depreciation and accumulated impairment.
in these financial statements have been rounded off to the nearest integer. The lease liability is initially measured at the present value of the lease payments payable over the lease term, discounted at the
2.6 Use of estimates and judgments incremental borrowing rate.

Preparation of financial statements requires management to make judgments, estimates and assumptions that affect the reported 3.2 Recognition and measurement of financial assets
amount of assets and liabilities, income and expenses. These financial statements contained information about the assumptions it Financial assets of the company include loan and advances, cash and cash equivalents, accounts receivables and other receivables.
made about the future and other major sources of estimation uncertainty at the end of the reporting period that have a significant risk The company initially recognizes receivable on the date they are originated. All others financial assets are recognized initially on the
of resulting in a material adjustment to the carrying amount of assets, liabilities, income and expenses within the next financial year. date at which the company becomes a party to the contractual provisions of the transaction. The company derecognizes a financial
In accordance with the guidelines as prescribed by IAS 37: Provisions, Contingent Liabilities and Contingent Assets. Provisions are asset when, and only when the contractual rights or probabilities of receiving the cash flows from the asset expire or it transfers the
recognized in the flowing situation: right to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risk and rewards of
- When the company has an obligation as a result of past events, ownership of the financial asset are transferred.
- When it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and 3.3 Investment in shares
- Reliable estimates can be made of the amount of the obligation. Investments in listed securities are recognized at cost. Quarterly impairment test is carried out by comparing cost with market price.
In case of diminution of market value compared to cost, provision is made on portfolio basis.

318 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 319
 SUPPLEMEN

Supplementary Information
3.4 Accounts receivable
Accounts receivables includes interest receivables, dividend receivables and receivable from EBLAML 1st Unit Fund and payable to
sister concern. They adjust their accounts with the sister concern.
3.5 Provision for income tax

TARYINFOR
Provision for income tax is made on the basis of company’s computation based on the best estimate of taxable profit in accordance

SUPPLEMENTARY
with Income Tax Ordinance, 1984.
3.6 Revenue recognition
Revenue is recognized only when it is probable that the economic benefits associated with the transaction will flow to the enterprise
and in accordance with the International Financial Reporting Standard (IFRS)-15 “Revenue from Contracts with Customers”.
3.6.1 Interest income from loan
In general, interest Income from loan is recognized on accrual basis. Such income is calculated on loan balance of the respective

INFORMATION
parties. Income is recognized on daily basis and applied to the customers' account on quarterly basis.
3.6.2 Net Investment income
Dividend income is recognized when right to receive or payment is established whereas profit or loss arising from the sale of
securities is accounted for only when shares are sold in the market and profit is realized or loss is incurred.

MATION
3.7 Provision
A provision is recognized in the accounts when the Company has a legal or constructive obligation as a result of past event, it is
probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made.
3.8 Provision for diminution in value of investments
Investment in quoted shares and un-quoted shares are revalued at the year end at market price and as per book value of last audited
statement of financial position. Provision should be made for any loss arising from diminution in value of investment. As such the
company measures and recognizes investment in quoted and unquoted shares at cost if the year end market value (for quoted
shares) and book value (for quoted shares) are higher than the cost except investment in mutual fund.
3.9 Events after the balance sheet date
Events after the balance sheet date that provide additional information about the company's position at the balance sheet date are reflected
in the financial statements. Events after the balance sheet date that are not adjusting event are disclosed in the notes when material.
3.10 General
i) Figures have been rounded off to the nearest integer.
ii) Previous year's figures have been rearranged wherever considered necessary to conform to the current year's presentation.
3.11 Application of International Accounting Standards (IASs):
The Financial Statements have been prepared in compliance with requirement of IASs and IFRSs applicable in Bangladesh. EBL
Asset Management Ltd. applied following IASs and IFRSs:
Name of the IAS IAS No.
Presentation of Financial Statements 1
Statement of Cash Flows 7
Accounting Policies, Changes in Accounting Estimates and Errors 8
Events after the Reporting Period 10
Income Taxes 12
Property, Plant and Equipment 16
Employee Benefits 19
Borrowing Costs 23
Provisions, Contingent Liabilities and Contingent Assets 37
Intangible Assets 38
Name of the IFRS IFRS No.
Financial Instruments: Disclosures 7
Financial Instruments 9
Fair Value Measurement 13
Revenue from Contracts with Customers 15
Leases 16

320 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 321
Branch Network

Supplementary Information
Moghbazar Branch Motijheel Branch Mouchak Branch
Shafi Complex, Holding No-1/A, West Moghbazar, New 88 Motijheel C/A, Dhaka. Siddique Shopping Complex (Ground Floor), Mouchak,
Circular Road, Ramna, Dhaka. Phone: 9565073-4, PABX: 9559655, 9565073 Kaliakair, Gazipur.
Phone: 0248317456 Branch E-Mail: info@ebl-bd.com IP Phone: 09666777325, Ext: 1767-1771
Dhaka Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com

Mymensing SME Branch Narayangonj Branch Naryangonj SME Branch

Hamida Market, 45 Choto bazaar, Kotwaly, Mymensingh. 64 Banga Bandhu Road, Islam Plaza, Narayangonj. S S Tower, 30/14 Loyal Tank Road, Tanbazar, Narayagonj.
Ashkona Branch Ashulia Branch Azimpur Branch Phone: 09163831, 09163841 Phone: 7648557 , 7648558, 7648683, 7648602 Phone: 7644048, 7644480
Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com
Hazi Komoruddin Tower 27, Ashkona, Dakshinkhan Ashraf Plaza, DEPZ Road, Jamgora, Ashulia, Savar, Dhaka. Tulip Feroza Dream,
Uttara, Dhaka 1230. IP Phone: 8809666777325, Ext: 1613 to 1621. 104 Azimpur Road, Hazaribagh, Dhaka 1000.
Phone: 02-48964609, 48964619, 48964622 Branch E-Mail: info@ebl-bd.com PABX: 55152059, 55152061 Nawabgonj Branch Ponchoboti Branch Principal Branch
Branch E-Mail: info@ebl-bd.com
Fax: 55152060
Branch E-Mail: info@ebl-bd.com Hossain Plaza, 281 Nawabgonj, Dhaka 1320. 101 & 102 Ponchobotir more (1st floor), Fatullah, 10, Dilkusha C/A, Ground Floor
Phone: 7765264, 7765266 Narayangonj. Jiban Bima Bhaban, Dhaka 1000.
Branch E-Mail: info@ebl-bd.com Phone: 0247670237, 47670884; IP: 09666777325.
Phone: 9568986, 9569286, 9569359
Banani Branch Banasree Branch Bashundhara Branch Branch E-Mail: info@ebl-bd.com
Branch E-Mail: info@ebl-bd.com
“Skylark Mark84” House # 84, Road # 11, Block-D, Banani Plot No: C-10 (1st Floor) Block: C, Eastern Housing Plot 15, Block A, Bashundhara R/A, Badda, Dhaka 1219.
Model Town, Gulshan, Dhaka 1213. Banasree Project, Main Road Rampura, Dhaka. Phone: 55037391, 55037392
Progoti Sarani Branch Satmosjid Road Branch Savar Branch
Phone: 02222262669, 02222262572, 02222260476 PABX: 55123519; Branch E-Mail: info@ebl-bd.com
Azahar Comfort Complex, Holding no. 130/A, ANZ Square. Plot No. 53, Road No. 3/A, Dhanmondi, Bristi Villa, E/4, Talbagh, Abul Kashem Sandip Sarak,
Branch E-Mail: info@ebl-bd.com IP Phone: 09666777325 Progoti Sarani, Middle Badda, Gulshan, Dhaka. Dhaka. Phone: 44-611641,611642, 611643, Ext: 102, 103, Savar, Dhaka.
Branch E-Mail: info@ebl-bd.com PABX: 0241080741, 0241080742, Phone: 0241080743 104, 110, 107, 115 IP Ext- 1790, 1216, 1881, 2149, 2146. Phone: 02224444758
Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com

Begum Rokeya Sarani Branch Bhulta Branch Board Bazar Branch

Shantinagar Branch Shyamoli Branch Sonargaon Branch
F & I Tower, 220 /a, 1/1 Begum Rokeya Sarani, Rabet Al Haasan Shopping Center (Pvt) Ltd., Bhulta Bus Omar Ali Plaza, House No – 1, Block – C, Kamalasher,
Shawrapara, Mirpur, Dhaka Stand, Rupgonj, Narayangonj. Gacha, Gazipur. Iris Noorjahan (1st Floor), 16-A/5 Ring Road, Shyamoli, Dhaka 1207. Bhuiyan Plaza, Habibpur, Mograpara, Sonargaon,
Phone: +8809666777325 [IP NO] IP Phone: +8809666777325, IP Phone: 09666777325 PABX: 9132497, 58155634 Narayangonj.
Plot no: 104, Kakrail Road, Ramna, Dhaka.
Branch E-Mail: info@ebl-bd.com EXT: 980 to 986 Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com IP Phone: 09666777325, Phone: 7656031, 7656036
Branch E-Mail: info@ebl-bd.com Phone: 028300012, 028300013, 028300028, 028300029.
Branch E-Mail: info@ebl-bd.com
Branch E-Mail: info@ebl-bd.com

Bhairab SME Branch Chawk Mughultuly Branch DEPZ Branch

Sonargaon Road Branch Tangail Branch Uttara Branch
Holding: 0161(East), Biplobi Reboti Borman Road, Bhairab 150 Chawk Mughultuly, (1st & 2nd Floor), Dhaka. Mazid Tower, P.O: Gazir chat, P.S: Ashulia, Baipail, Savar,
Bazar, Ward: 01, Bhairab, Kishorgonj. Phone: 57314364, 57343433 Dhaka. A H N Tower ( 1st Floor), Rahman Center, 1st floor, 55 Victoria Road, Tangail. House 1, Road 5, Sector 4, Uttara, Dhaka.
PABX: 02-9471307, 9471308, 02-9471309 Branch E-Mail: info@ebl-bd.com Phone: 7790926 13 & 15 Bir Uttam C R Datta Road (Sonargaon Road), Phone: 092162437, 092162438 PABX: 58956051, 58953816; 58957370
Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com Biponon C/A, Bangla Motor, Shahbag, Dhaka. Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com
Phone: 58616805, 9666691, 9667477.
Branch E-Mail: info@ebl-bd.com
Dhanmondi Branch Dohar Branch English Road Branch
House-21, Road-08 Ashraf Ali Chowdhury Plaza, Joypara bazar, Dohar, Dhaka 68, Shahid Sayed Nazrul Islam Sarani, Uttara Garibe Newaj Branch Wari Branch
Dhanmondi R/A, Dhaka 1205. 1330. (1st – 3rd floor), North South Road,
Phone: 8142987, 8142659, 9126141, 9114145 IP Phone: 09666777325 PABX: 02 7768208, 7768233 Dhaka 1100. Plot No. 15, 1st floor, Garib -E-Newaz Avenue, Sector-11, 40/1 Rankin street (GF, 1st & 2nd Floor), Wari, Dhaka.
IP Phone: First dial 9556360 then dial Ext-666 and after IP Branch E-Mail: info@ebl-bd.com Phone: 47116019, 57163842 Uttara, Dhaka 1230. Phone: 029569170, 47110137
Ext- 1601 (BM), Branch E-Mail: info@ebl-bd.com Phone: 48964457, 48964847. Branch E-Mail: info@ebl-bd.com
703 (Priority Center)
Branch E-Mail: info@ebl-bd.com
Branch E-Mail: info@ebl-bd.com

Faridpur Branch Gulshan Avenue Branch Gulshan Branch

7/216, Golpukur Dream Shopping Complex, Alipur,
Faridpur.
Z N Tower (Ground Floor), Holding-02, Block-S W (I), Road-
08, Gulshan Avenue, Gulshan-01, Dhaka 1212.
100, Gulshan Avenue, Dhaka-1212.
IP Phone: 09666777325 Chattogram
Phone: 0631-67219, 67220. PABX: 9850650, 9850630, Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com
Branch E-Mail: info@ebl-bd.com

Gulshan-North Branch Jashimuddin Road Branch Keraniganj Branch

Agrabad Branch Bhatiari Branch CEPZ Branch
Kalpana House, 169, Gulshan Avenue, Gulshan-2, Dhaka. Giant Business Tower, Plot # 3 & 3/A [First Floor], Sector # Jahanara Plaza, Bandha Dakpara, Zinzira, Keraniganj,
Phone: 02-222296316, 02-222296038, IP No. 489, 1982, 03, Uttara C/A, Dhaka 1230. Dhaka. 33 Agrabad C/A, Chattogram. Sajeda Bhaban (GF, 1st & 2nd floor), beside H. Akbar Ali 1279/A, Saleh Complex, CEPZ Gate, Bandar, Chattogram.
5777 Phone: 58955196 Phone: 7762236-7 Phone: 031720755-59, 0312516613, 0312516614, Road, Bhatiari, Chattogram. PABX: 031742196-97
Branch E-Mail: info@ebl-bd.com E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com 0312516615 Phone: 0312781031, 0312781032 Branch E-Mail: info@ebl-bd.com
Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com

Keranigonj SME Branch Madhabdi Branch Khilgaon Branch

Chandgaon Branch Choumuhoni Branch Cox's Bazar Branch
“Green Tower” (1st floor), East Aganagar, P.S- Keranigonj, 242/1 Algi Road, Parkshipur, Madhabdi Bazar, Madhabdi, Farid Community Center, 574/C Khilgaon Chowdhury
Dhaka Narsingdi Para, Dhaka 1219, House No. 16, Road No: 01, Block A, Chandgaon R/A, KIRON IMPERIAL (GF, 1ST and 2nd Floor), 1460 Karimpur 10, Hotel Motel Zone, Kolatali Road, Cox’s Bazar.
Phone: 7763725 (Direct), 7763726 & 7763727 (PABX) Phone : PABX: 02-9446995 Phone: 0255121933, 0255121934, Fax: 0255121935 Chattogram 4212 Road, Choumuhoni, Begumgonj, Noakhali. Phone: 034151296-7
Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com Phone: 031-670148 (D), PABX: 031-672606; 031-672396 Phone: 032154497, PABX: 032154495-54496 Branch E-Mail: info@ebl-bd.com
Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com

Mawna Branch Mirpur Branch Mirpur Dar-US-Salam Road Branch

Cumilla Branch Dohazari Branch Feni SME Branch
Creative Bhaban, Mawna Chowrasta, Sreepur, Gazipur. Plot # 17, Main Road # 3, Block-A, Section-11, Mirpur, Chand Plaza, 10 Dar-Us- Salam Road, Mirpur-01, Dhaka
IP Phone: 09666777325 Ext: 970 to 976 Dhaka 1216. 1216. Chowdhury Plaza, 195 Jail Road, Jhawtola, Cumilla. Hazari Tower (1st Floor), Dohazari, Chandanaish, Kazi Alamgir Center,
Branch E-Mail: info@ebl-bd.com Phone: 9008115, 9010478, 8056364. Phone: 9003465, 48038052 Phone: 880-8172479, 72478. Chattogram. 26 S.S.K Road, Feni.
Branch E-Mail: info@ebl-bd.com PABX: 09666777325 Phone: 033173563,033173564,
Branch E-Mail: info@ebl-bd.com Fax: 58055985.
Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com
Branch Email: info@ebl-bd.com

322 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 323
 Supplementary Information
Halishahar Branch Hathazari Branch Jamal Khan Branch
House 01, 1st Floor, Road 01, Block L, Halishahar Housing Haji Sultan Market, Hathazari Bus Stand, Hathazari, CPDL AM Majesta (1st Floor), 84, Jamal Khan Road,
Rajshahi
Estate, Chattogram. Chattogram. Chattogram.
Phone: 0312513895, PABX: 0312513896-7 PABX: 0312601956-57 PABX : 0312866603-04,
Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com
Rajshahi Branch Bogura Branch
Jubilee Road Branch Khatunganj Branch Khulshi Branch Doinik Barta Complex (Ground Floor), Alupotti, 1020/1092, Satani Mega Centre, Sherpur Road,
Natore Road, Rajshahi 6000. Bogura 5800.
Mannan Bhaban (Ground Floor), 156 Nur Ahmed Sarak, 173 Khatunganj, Badsha Market, Chattogram. 10 Zakir Hossain Road, Khulshi, Chattogram 4212.
Phone: 0721772372 Phone: 05178373, 05178887, IP Phone: 9666777325
Jubilee Road, Chattogram. PABX : 031621316, 031630229. PABX: 031623411-12, Phone: 031623410.
Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com
Phone: 621480 Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com
Branch E-Mail: info@ebl-bd.com

Lohagara Branch Maijdee Branch Mehedibag Branch Rangpur

M. K. Shopping Center (1st FL), Bottali, Lohagara, Alif Plaza, Main Road, Maijdee, Noakhali. Epic Emdad Heights, 38 Chatteshwari Circle, Mehdibagh,
Chattogram. PABX : 032171115, 032171116 Chattogram.
PABX: 0303456681, 0303 456682. FAX: 088032171137 PABX : 0312869451-2
Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com
Rangpur Branch

Muradpur Branch Nazirhat Branch New Market Branch House 11, Road 01, Dhap Jail Road, Rangpur.
PABX: 052155289,052155290
Jumairah Fairmont Trade Centre, 327 (Old), CDA Avenue Zaria Community Center (Adjacent to Darbar Gate), 904/731, H S S Road (New Market More), Alkaran, Branch E-Mail: info@ebl-bd.com
Muradpur, Chattogram 4203. Nazirhat, Fatikchari, Chattogram. Kotwali, Chattogram 4000.
Phone: 031653973-74 PABX: 09666777325 Phone: 031621898, 620519, 636986; PABX: 031620519
Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com
Barishal
OR Nizam Road Branch Panchlaish Branch Raozan Branch
Avenue Centre, 787 CDA Avenue, Chattogram. Al-Hakim Plaza, 14, Panchlaish R/A, Chattogram 4203. Bharetoshowri Market, Kaptai Road, Noapara, Raozan,
Phone: 0312857073-75 Phone: 031655523 031655524 Chattogram 4346.
Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com Phone: 09666777325 Barishal Branch
Branch E-Mail: info@ebl-bd.com
Bishnu Priya Bhaban, 69 Sadar Road, Barishal.
Sirajuddowla Road Branch PABX: 04312177644, 04312177643
Branch E-Mail: info@ebl-bd.com
94 Sirajuddowla Road, Dewan Bazar, Chandanpura,
Chattogram.
PABX : 0312865261,0312865263-4
Branch E-Mail: info@ebl-bd.com
Sub-branch

Sylhet Chandra Sub-branch Daulatpur Sub-branch Kanchpur Sub-branch

Momota Super Market, House No. 86/2, Block: H, Ward-7, SS Center Shopping Mall, Holding: 1/1, Ward # 6, Jashore Sonargaon Mega Complex (Ground Floor),
Sattar Road, Palli Bidyut, Chandra, Gazipur Khulna Highway Road, Daulatpur Khulna 96 Kanchpur, Sonargaon, Narayanganj.
Phone: 09666777325 Ext-6870 Phone: 041-760222; IP Phone: 09666777325 Ext-6900 IP Phone: 09666777325 Ext-6885
Bishwanath Branch Brahmanbaria Branch Chouhatta Branch
Mirsarai Sub-branch Karnaphuli EPZ Sub-Branch
Khurshid Ali Shopping Complex, Notun Bazar, Malek Khayer Plaza; 95, Paik Para, Jame Masjid Road Plot 01, Tea Board Building, Zindabazar Road, Chouhatta
Bishwanath, Sylhet. (North Side of Kumarshil Point), Brahmanbaria. Point, Sylhet. Hazi Renu Miah Master Shopping Complex, Old Zone Services Building (Ground Floor),
PABX: 0822456005 Phone: 085161648-49, 58614 Phone: 0821723242, 721386 Holding No. 183-0069, Ward No. 02, KEPZ Complex, Ward No-40, Patenga, Chattogram.
Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com Mirsarai, Chattogram IP Phone: 09666777325, Ext: 3900
IP Phone: 09666777325 Ext: 3853

Fenchuganj Branch Moulvi Bazar Branch Upashahar Branch

Tuta Miah Mansion (1st Floor), Fenchuganj Bazar, Jubel Mall (1st Floor), 1165, Sylhet Trunk Road, 504 Gas Bhaban (GF), Mehdi Bagh, Sylhet.
Fenchuganj, Sylhet. Kusumbagh, Moulvibazar. PABX: 0821719573
Phone: 0822656413, 0822656411, 0822656412 PABX: 0861 52034 Branch E-Mail: info@ebl-bd.com
Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com

Khulna

Fulbarigate Branch Jashore Branch Khulna Branch

Altaf Plaza, Jogipole, Fulbari Gate, Khan Jahan Ali, 25/A R.N. Road (1st Floor), Jashore. Tayamun Centre & Properties, 181, Jashore Road, Khulna
Khulna. Phone: 042164533, 042168843 Tel: 041720041-2, 721069, 723506, 723418, 725020
Phone: 041775080, 775082 Branch E-Mail: info@ebl-bd.com Branch E-Mail: info@ebl-bd.com
Branch E-Mail: info@ebl-bd.com

324 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 325
 Proxy Form

EASTERN BANK LIMITED B÷vY© e¨vsK wjwg‡UW

REGISTERED OFFICE
100 GULSHAN AVENUE, GULSHAN
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DHAKA-1212.
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NOTICE OF THE 29TH ANNUAL GENERAL MEETING cÖw· dig

(Shareholders’ Meeting through Digital Platform)
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NOTICE is hereby given that the 29th Annual General Meeting (AGM) of Eastern Bank Limited (EBL) will be held on Sunday, 30 May 2021 at
11.00 AM (Dhaka time) by using Digital Platform through the link https://tinyurl.com/eblagm2021 to transact the following Agenda: B÷vY© e¨vsK wjwg‡UW Gi †kqvi‡nvìvi wnmv‡e GZØviv Rbve/†eMg -----------------------------------------------------------------------†K
AGENDA: wVKvbv------------------------------------------------------------------------------------------------------------------------A_ev
01. To receive, consider and adopt the Profit & Loss Account of the Company for the year ended 31 December 2020 and the Balance Sheet Zuvi AcviMZvq Rbve/†eMg ------------------------------------------------------------------------------------------------------------- †K
as at that date together with the Reports of the Auditors and the Directors thereon. wVKvbv---------------------------------------------------------------------------------------------------------------------------cÖw· wnmv‡e
02. To declare the Dividend for the year ended 31 December 2020 as recommended by the Board of Directors. Avgvi/Avgv‡`i c‡¶ 2021 Bs mv‡ji 30 †g iweevi , mKvj 11.00 NwUKvq (XvKv mgq) wWwRUvj c¬vUd‡g©i gva¨‡g AbywôZe¨ †Kv¤úvbxi 29Zg evwl©K
03. To elect Directors. mvaviY mfvq Ges cieZ©x †h †Kvb g~jZex mfvq Dcw¯’Z †_‡K †fvU †`Iqvi Rb¨ wbhy³ Kijvg|
04. To approve the appointment of Independent Directors.
05. To appoint the External Auditors of the Company for the term until the next Annual General Meeting and to fix their remuneration.
06. To appoint the Corporate Governance Compliance Auditors for the year 2021 of the Company and to fix their remuneration. ivR¯^ wU‡KU
By order of the Board of Directors †kqvi‡nvìv‡ii ¯^v¶i------------------------- wek UvKv

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Md. Abdullah Al Mamun, FCS

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Dated, Dhaka
28 April 2021 Company Secretary
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NOTES h_vh_fv‡e c~ib K‡i GB cÖw· dig mfvi AvUPwjøk (48) N›Uv c~‡e© †Kv¤úvbxi †kqvi wWcvU©‡g‡›U Rgv w`‡Z n‡e| ÷v¤ú I ¯^v¶iwenxb cÖw· ˆea e‡j
we‡ewPZ n‡e bv| †kqvi‡nvìvi I cÖw·i ¯^v¶i †Kv¤úvbxi bw_f‚³ bgybv ¯^v¶‡ii mv‡_ wgj _vKv evÃbxq| cÖw·i bvg m¤^wjZ cÖw· wb‡qvM msµvšÍ `wjj
• The Board of Directors recommended for payment of 17.50% (Seventeen point five zero percent) Cash Dividend and issuance of 17.50 % (Seventeen point
Ges cvIqvi Ae GUb©x ev Ab¨ †Kvb ¶gZv cÖ`vbcÎ ev †bvUvix cvewjK KZ©©„K mZ¨vwqZ ¶gZv cÖ`vbc‡Îi Abywjwc mfv Abyôv‡bi wba©vwiZ mg‡qi
five zero percent) Stock Dividend (Bonus Shares) on the profit of the Bank as at the close of business on 31 December 2020.
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• The ‘Record Date’ in lieu of Book Closure will be on Wednesday, 5 May 2021. The Shareholders whose names would appear in the Register of Members of the
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Company and/or in the Depository on the ‘Record Date’ (5 May 2021) will be eligible to join the 29th AGM and entitled to the Dividends as mentioned above.
• A Member eligible to join the Annual General Meeting (AGM) is entitled to appoint a Proxy to join and vote on his/her behalf (through digital platform). Forms
of Proxy duly filled, signed & stamped must be sent through email to the Share Department of the Company at sharedepartment@ebl-bd.com at least

•
48 hours before the time fixed for the Meeting.
All Hon’ble Shareholders of EBL are also requested to update their respective BO Accounts [Mailing Address, Electronic Mail (e-Mail), Bank Account details,
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Taxpayer’s Identification Number (e-TIN), Contact Number etc.] through Depository Participant (DP) latest by 04 May 2021 (Before Record Date). As per Sec wbewÜZ Kvh©vjq
54 of Income Tax Ordinance 1984, without having e-TIN, Income Tax will be deducted @ 15% (Fifteen Percent) instead of @ 10% (Ten Percent) from payable
Cash Dividend.
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• Detail login process for the meeting will be available in the Company’s website at www.ebl.com.bd. The Members will be able to submit their questions/
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comments and vote electronically 24 hours before commencement of the AGM and during the AGM. Please visit our website for technical assistance (if any)
in accessing the virtual meeting.
• The soft copy of the Annual Report-2020 of the Bank (EBL) will be sent to the email addresses of the Members available in their Beneficial Owner †kqvi‡nvìvi / cÖw·i nvwRivcÎ
(BO) accounts maintained with the Depository as per BSEC Notification No. BSEC/CMRRCD/2006-158/208/Admin/81 dated 20 June 2018. The Annual
Report-2020 will also be available in the website of the Bank within the stipulated time. Avwg/Avgiv 30 †g 2021, iweevi mKvj 11.00 NwUKvq (XvKv mgq) wWwRUvj c¬vUd‡g©i gva¨‡g AbywôZe¨ B÷vY© e¨vsK wjwg‡UW Gi 29Zg evwl©K
• Depository Participants (DP) / Stock Brokers are requested to send the list of Margin Account Holders based on Record Date, if any, within 20 May 2021 to the Company, mvaviY mfvq Avgiv/ Avgv‡`i Dcw¯’wZ wjwce× Kijvg|
otherwise, the dividend will be paid to Shareholders Bank Account whose names appeared in the Member/ Depository Register on the ‘Record Date’ (05.05.2021).

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Shareholders can join Virtual AGM from Laptop, PC, Mobile or Tab using this QR Code. cÖw·i bvg---------------------------------------------------------- ¯^v¶i---------------------------------------------------

326 Eastern Bank Limited Go to Contents Go to Contents Annual Report 2020 327