THE BANGLADESH

Details & Description

Bangladesh Shilpa Bank (BSB) established under the Bangladesh Shilpa Bank Order 1972 (Presidential Order No. 129 of 1972) on 31 October 1972, to provide credit facilities and equity support to industrial enterprises in Bangladesh. It is the prime development financing institution (DFI) in the country for extending financial assistance for industrialisation. The Bank provides long and medium-term loans both in local and foreign currencies, guarantees repayment of loans raised by investors from other sources, and provides equity support by way of outright purchase of shares and by underwriting the public issue of shares. It also extends short-term bridge financing and working capital loans on a limited scale. BSB provides free technical advice in respect of plant and machinery, product and process, raw materials, market for products, and other related aspects to prospective entrepreneurs. It prepares project profiles for private entrepreneurs. All industrial projects either in the public sector or in the private sector are eligible for financial assistance from the bank. It follows a policy of diversifying its lending portfolio for widespread geographical dispersal of industrial enterprises, especially in less-developed areas of the country. With the view to bringing more dynamism and diversity in its activities, BSB started full-fledged commercial banking in 1993-94. This enables bank-financed projects to obtain commercial banking services including working capital loans, import of raw materials, etc.

Industries play indispensable role in the economic enlargement of every country. This is why Industrialization has been used as main mechanism of economic expansion in many developing countries. Government of Bangladesh instituted a development financial institution named Bangladesh Shilpa Bank on 31s December, 1972 under the presidential order no. 129 of 1972 with a mission of speeding the process of industrialization of the country by providing financial support and equity backing. It has been extending long and medium term loan facilities in local and foreign currencies to industrialize projects in the private and public sectors. Initially, the authorised capital of the bank was Tk 1,000 million in 1972 and the paid up capital was then Tk 750 million, which was subscribed by the government of the People's Republic of Bangladesh. Later, the authorised and paid up capital was enhanced. In 2000, the authorised capital was Tk 2,000 million divided into 2 million shares of Tk 1,000 each. Tk 1,320 million (66%) was subscribed and paid up by the government while the rest were left for subscription by Bangladeshi nationals or by financial institutions at home and abroad.

The bank created a reserve fund of Tk 7 million in its first year of operations. In 1999-2000, the total reserve fund and other reserves of the bank stood at Tk 392.36 million. In 1982, the bank created a special equity fund titled 'Quasi Equity' by converting the 3rd, 5th, 6th and 8th UK credits received by it immediately after independence in 1971. The prime objective of the bank is to accelerate industrial growth in the country by financing industries, by providing advisory services in setting up new projects, and by assisting in balancing, modernisation, replacement and expansion (BMRE) of existing industrial units.

Phone: 88029555583, 9555151

Swift code: BSHBBDD1