Report on Trust Bank Limited

Historical Background:

The Trust Bank Ltd is schedule commercial bank, which conducts its operation as per the rules and regulations of Bangladesh Bank. The Army Welfare Trust (AWT) is the main sponsor of the bank, and it is expected that the bank would soon float public shares in the capital market for its conversion into a public limited company. The bank started its operations in November 29, 1999. At present the bank has 12 branches across the country. It renders all types of personal, commercial and corporate banking service to its customers within the purview of the Bank Companies Act, 1991 and in line with the directives and policy guidelines laid down by the Bangladesh Bank.

In addition to ensuring quality customer services related to general banking the bank also deals in Foreign Exchange transactions. In the mean time the bank has extended credit facilities to almost all the sector of the country’s economy. The bank has plans to invest extensively in the country’s industrial and agricultural sectors in the coming days.

It has also plans to promote the agro-based industries of the country. The bank has already participated in syndicated loan agreement with other banks to promote textile sectors of the country. Such participation would continue in the future for greater interest of the overall economy. Keeping in mind the client’s financial and banking needs the bank is engaged in constantly improving its services to the clients and launching new and innovative products to provide better services towards fulfillment of growing demands of its customers.


The Trust Bank Ltd is very recent bank in this time. In present time as per the Bangladesh Bank rule that a bank’s paid-up capital must have 100 crore when any one want to open a bank. So at the present the bank do not have 100 crore in their paid-up capital structure but they have a huge fund which is given by The Army Welfare Trust. In recent the bank increase their paid-up capital from 25 crore to 35 crore but it is not signed by the board of directors.

The Trust Bank Ltd aims at optimizing profit with a view to allowing good returns on the investors’ money. Within two years of its operations bank has strengthened its capital base by increasing reserve and retained earnings. The Capital Adequacy Ratio as on December 31, 2001 was 17% against the standard of 8% and the crore capital ratios was 16% as against standard of 4%

The authorized capital of the bank is Taka 1000 million. Total shareholders equity at the end of the December 2001 stood at Taka 276.31 million. Out of Taka 276.31 million, paid-up capital is Taka 250 million, Statutory Reserve is Taka 10.97 million and Retained Earnings is Taka 15.34 million. The paid-up capital is indicative of the face value of 250000 ordinary shares of Taka 1000/= each fully subscribed by the shareholders. As at the close of business on December 2001 the capital adequacy ratio was 17% against the standard of 8%. The core capital ratio was 16% against the standard of 4%.

    Number of Branches:

In this time the bank has already 13 branches in many different places in Bangladesh. Most of the branches are inside the cantonment area, because when they start their operation there main purpose was to serve the army. But with the current demand they try to go for vast banking. So for meeting up the demand they try to increase the number of brunches all over the Bangladesh.

    Management Structure:

The management structure of the company has shown below through the organization structure diagram:


An institution cannot run without manpower. So it is not accepted for The Trust Bank. In current they have 169 officers’ level employee and 50 as a causal worker.

    Profit & Operating Result:

Total operating income of the bank in the year 2002 was Taka 190.34 million against a total operating expenditure of Taka 85.47 million. Total profit before provision stood at Taka 104.71 million during 2001. After keeping Taka 15.71 million as provision against classified loans & advances, Taka 2.52 million as provision against unclassified loans (1%) and Taka 34.00 million as provision for income tax, the net profit stood at Taka 52.48 million during the year 2001. Net profit after income tax in the year 2000 posted by the bank, was Taka 25.96 million. There is a significant increase in profit in 2002 over the preceding year 2001. The earning per share was Taka 199.45 in the year 2001. The retained earnings increased to Taka 50.53 million in 2002 from Taka 15.34 million in 2001.

    Expansion of Branches:

The TBL has taken up a programme to expand its branches. The bank has already 13 branches in many different places in Bangladesh; most of them are inside the different cantonments. The management is filling that they need more branches all over the Bangladesh. So very recent they will open a branch in Dhanmondi. As per Bangladesh Bank circular that if any bank opens a branch in Dhaka then they have to be open a branch in out side Dhaka.

    Information Technology & Automation:

All the branches of the TBL are fully computerized. New software is now in use to provide faster, accurate and efficient service to the clients. The bank is continuously striving for better services through extensive automation of its branches. We are soon going to launch “One Branch Banking” through on-line connectivity. The bank has set up a full-fledged IT division to keep abreast of the latest development of IT for better service in the days to come.

    Foreign Correspondents:

Foreign correspondent relationship facilities foreign trade operation of the bank, mainly in respect of export, import and foreign remittance. The number of foreign correspondents and agents of the bank in the year 2002 stood at 244, which covers important business and trade centers of the world. The bank maintains excellent relationship with the leading international banks, for handling all foreign correspondent and maintaining all foreign business there is an International Division, which is called ID.

    Human Resources Development:

The bank’s work force is composed of personnel having rich academic background with vast experience in banking. The human resources development means to create an environment by dynamic, enthusiastic and vigorous participation of all individuals. We would like to be consistent and transparent in their decisions and actions. The total number of executives and officers of the bank stood at 138 and others number of employees are 50 as on April 2003. To make their personnel knowledgeable and truly professional they arrange training for them at Head office of the bank, BIBM and other institutions. The management of the bank sits with the branch managers and departmental heads in regular meetings. The meetings provide scope for open discussion, which help in formulating new strategies for achieving “targets” of the bank.

    Social Commitment & Future Prospect:

It has been all most three years science the stepped in to the banking arena. They are not yet past of their formative stage. It would be only a matter of time for them to testify that they are equally committed to the social upliftment of the country. They would stand by the people through philanthropic activities whenever any crisis and disaster confront them. They will not keep their social welfare activities restricted to one area only. It will be diversified in the days ahead of us as they are planning to award students of exceptional academic performance with scholarship in different educational institutions. They expect to launch soon school banking by extending their services, which would encourage parsimony in the students. It would also help in the creation of savings, which could be utilized for pursuing higher studies in future. Keeping in mind their social commitment would soon launch “Educational” and “Hajj” loans. Agriculture, being the only means of subsistence for innumerable people in rural areas of the country, needs more attention. They have plans to manufacturing agricultural equipments in the Bangladesh Machine Tools Factory Ltd., which would be distributed among their farmers at an affordable price.


The bank will soon itself as a member of SWIFT Alliance Access, a sophisticated, fraud proof secured financial messaging system provided by the Society for Worldwide Inter-bank Financial Telecommunication (SWIFT), Belgium. With the installation of the SWIFT system the bank would ensure and reliable transmission of L/C, funds transfers, outgoing and incoming massages and other financial services.

Web Page:

The introduction of Internet has change the traditional concept of world trade and commerce. As the time is progressing its necessity is being felt more in the prevailing competitive since no organization can afford to remain in isolation with the rest of the world for its survival. In order to provide up-to-date information on the bank at fingertips to the trade and business communities of the world, their own IT team has developed a web page for the bank. It can be accessed to under the domain.