BASIC Bank Limited (Bangladesh Small Industries and Commerce Bank Limited) registered under the Companies Act 1913 on the 2nd of August, 1988, started its operations from the 21st of January,1989. It is governed by the Banking Companies Act 1991. The Bank was established as the policymakers of the country felt the urgency for a bank in the private sector for financing small-scale Industries (SSIs). At the outset, the Bank started as a joint venture enterprise of the BCC Foundation with 70 percent shares and the Government of Bangladesh (GOB) with the remaining 30 percent shares. The BCC Foundation being nonfunctional following the closure of the BCCI, the Government of Bangladesh took over 100 percent ownership of the bank on 4th June 1992. Thus the Bank is state-owned bank.
History of BASIC Bank
BASIC Bank Limited is one of seven state-owned banks in Bangladesh. In 2016 the finance minister in a statement described the state of the bank as weak due to graft by top officials of the bank and would require some time for improvement. Sonali Bank UK Ltd and other international banks had censured Basic bank over irregularities. Since 2012 Basic bank had been frozen out of international transactions as a result of the irregularities.
The controversy around BASIC Bank Limited
Two Deputy Managing Directors Fazlu Sobhan and Mohammad Selim, and former Deputy General Manager Shipper Ahmed were sent to prison for embezzlement. Anti Corruption Commission had filed 56 cases against 156 people in 2015 over the embezzlement of 20 billion takas. Bangladesh bank estimated 45 billion had been swindled from the bank during the 6 years the time Sheikh Abdul Hye Bachhu served as the chairman of the bank.
Among the accused was the former managing director Kazi Fakhrul Islam. There were allegations that the Anti-corruption commission did not file cases against former chairman Sheikh Abdul Hye Bacchu because he is a “Jatiya Party leader” and had “connections at high positions”.
FUNCTIONS
The Bank Offers:
- Term loans to industries especially to small-scale enterprises.
- Full-fledged commercial banking service including collection of deposit, short term trade finance, working capital finance in processing and manufacturing units and financing and facilitating international trade.
- Technical support to Small Scale Industries (SSls) in order to enable them to run their enterprises successfully.
- Micro credit to the urban poor through linkage with Non- Government Organizations (NGOs) with a view to facilitating their access to the formal financial market for the mobilization of resources.
In order to perform the above tasks, BASIC Bank works closely with its clients, the regulatory authorities, the shareholders (GOB), banks and other financial institutions.
Corporate Strategy:
Financing establishment of small units of industries and business and facilitate their growth Small Balance Sheet size composed of quality assets.
- Steady and sustainable growth.
- Investment in a cautious way.
- Adoption of new banking technology.
- To employ funds for profitable purposes in various fields with special emphasis on small scale industries.
- To undertake project promotion on identify profitable areas of investment.
- To search for newer avenues for investment and develop new products to suit such needs.
- To establish linkage with other institutions which are engaged in financing micro enterprises.
- To cooperate and collaborate with institutions entrusted with the responsibility of promoting and aiding SSI sector.
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