Annual Report 2018

Committed to
Translate
Vision Into
Reality
“A bank with vision” is our brand slogan. Our vision to be a premier
banking institution of the country and contribute significantly to the
national economy was adopted with remarkable foresight in 1995 at
the time of inception of the bank. It clearly demonstrates who we are,
what we want to become and what we are expected to do. It serves as
a beacon to determine our mission and strategies to reach our goals
and achieve our vision. It pulls in ideas within the organizations as well
as from all stakeholders, generates innovations, provides incentives for
excellence in service and above all reiterates the tremendous role of
a banking institution for the growth of our national economy through
promotion of productive investment. Our vision also reminds us to
pursue proactive thinking and adaptability to change in response to
emerging opportunities and challenging socioeconomic environment
at home and abroad.
At Southeast Bank Limited we continuously design and align our

business models keeping in mind our vision, strategies, the aspirations
of our stakeholders and above all the need for sustainable development
of the economy for greater benefit of the people at large. We relentlessly
strive to achieve further excellence in our corporate governance culture
and regulatory compliance as well as promote professionalism in our
workforce because we believe these are the foundations of sustainable
development of our institution. We always keep in mind the dynamic
nature of business environment and redesign our lending and deposit
mobilization strategies so that they meet the needs of our customers
and national development goals not only for the present generation
but also for the generations to come.
With clear vision in view, the bank is becoming more and more profitable,
flexible, innovative and better structured with attractive products and
services for customers at large and skilled, dynamic and dedicated
workforce always ready to extend those exceptional services. We are
committed to put together all our actions in a dynamic way to transform
our vision into reality.
Committed to translate vision into reality
Financial Indicators
Financial Overviews - Last 5 Years
Total Assets Total Loans and Advances

(BDT in million) (BDT in million)
236,608 260,718 291,798 339,288 381,576 147,071 168,878 191,866 234,317 267,672
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Profit before Provision Profit after Tax

(BDT in million) (BDT in million)
8,290 8,034 8,503 9,062 9,783 3,837 3,069 2,435 1,169 2,473
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Earnings per Share (EPS) Return on Assets (RoA)
4.18 3.35 2.66 1.11 2.35 1.67% 1.23% 0.88% 0.37% 0.69%
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Total Capital to Risk Weighted Return on Average Risk Weighted

Assets Ratio Assets (RRWA)
12.41% 11.52% 12.15% 10.84% 12.38% 1.82% 1.31% 0.92% 0.39% 0.79%
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Annual Report 2018 Southeast Bank Limited
a bank with vision
Non-Financial Indicators
Non-Financial Overviews - Last 5 Years
A) IN TERMS OF COMPETITIVENESS
Number of Deposit Customers Size of Loan Customers
416,823 468,154 570,196 638,139 702,019 11,789 13,025 14,155 15,563 16,739
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Number of Cardholders Number of Women Entrepreneurs

Debit Cardholders Credit Cardholders
114 128 174 189 152
201,310
174,271
134,255
102,000
98,818
76,783
74,843
61,327
50,438
43,513
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Number of Branches Number of Foreign Correspondents
113 122 128 132 135 790 811 807 825 644
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Number of Employees Number of Shareholders
2,221 2,376 2,616 2,704 2,797 58,169 46,285 39,009 36,038 33,851
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
B) IN TERMS OF ACTIVITY LEVEL
Number of Loans Disbursed Number of New Remittance

Customers Engaged
63,421 66,239 73,037 85,353 91,041 9,656 10,121 10,795 9,382 8,534
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Number of Bad Debt Collected Market Share of SEBL Advance (in percent)
Classified Loans Written Off Loans SEBL Industry other then SEBL
97.21 96.75 97.13 97.09 97.10

153
147
129
94
64
13
3.25
7
2.79 2.87 2.91 2.90

4
5
2
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Market Share of SEBL Deposit (in percent)

SEBL Industry other then SEBL
97.35 97.44
97.27 97.13 97.05
2.73 2.65 2.56 2.87 2.95
2014 2015 2016 2017 2018

a bank with vision
C) IN TERMS OF PRODUCTIVITY LEVEL
Per Employee Cost (BDT in million) Number of Internet Banking

Customers Engaged
1.49 1.51 1.60 1.76 1.78 4,183 4,068 3,690 1,830 1,222
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Accounts Opened Trend
151,142 138,416 177,260 131,706 149,565
2014 2015 2016 2017 2018
D) IN TERMS OF QUALITY SERVICE
Number of Accounts Closed or Average Number of Service Drop

Became Dormant of Call Centre
15,942 95,276 159,662 202,809 17,363 11.00% 3.00% 1.00% 4.44%
2014 2015 2016 2017 2018 2015 2016 2017 2018
Average Number of Customer

Complaints Received
2.00% 4.00% 3.00% 2.37%
2015 2016 2017 2018

Customer Satisfaction Level with Customer Satisfaction Level

Technological Facilities with Bank Staff
91.87% 92.14% 94.76% 96.31% 96.42% 82.5% 86% 90.7% 94% 94.8%
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Average Time Taken to Respond to Employee Turnover Rate

Customer Inquiry (in minutes)
5.39 2.37 3.26 4.40 4.22 4.98% 4.61% 4.15% 6.02% 7.07%
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Number of Employees Received New

Qualifications or Completed Courses
190 184 136 75 94
2014 2015 2016 2017 2018

a bank with vision
Balance
Score Card
BDT in million
Financial Highlights 2018 2017 2016
Financial Results
Revenue 33,739.81 27,305.90 25,617.57
Provision for Credit Losses 9,961.90 6,628.68 3,728.28
Operating Expenses 5,178.92 4,870.74 4,349.23
Net Revenue 2,473.21 1,168.63 2,435.07
Financial Results(%)
Reported/Adjusted Efficiency Ratio 34.61% 34.96% 33.84%
Return on Common Shareholder's Equity (ROE) 9.17% 4.46% 9.06%
Net Interest Margin (NIM) 3.18% 3.42% 3.77%
EPS 2.35 1.11 2.66
Common Share Performance
Market Capitalization 16,450.10 20,356.29 17,146.97
Dividends(%)
Dividend Yield 0.06 0.07 0.11
Reported/Adjusted Dividend Payout Ratio 0.43 1.18 0.75
Revenue Provision for Credit Losses Operating Expenses

25,618 27,306 33,740 3,728 6,629 9,962 4,349 4,871 5,179
2016 2017 2018 2016 2017 2018 2016 2017 2018
Net Revenue Earnings per Share Dividend per Share

2,435 1,169 2,473 2.66 1.11 2.35 2.00 1.50 1.00
2016 2017 2018 2016 2017 2018 2016 2017 2018
Dividend Yield
0.11 0.07 0.06
2016 2017 2018

Awards and
Recognition
Southeast Bank won “Silver Award” for Corporate Governance Excellence
Southeast Bank Limited has been awarded Silver Award in the “5th ICSB National Award for
Corporate Governance Excellence, 2017” in Banking Companies Category by The Institute of
Chartered Secretaries of Bangladesh (ICSB). ICSB bestowed the prestigious Award on the Bank for its
Corporate Governance practices that came out in the disclosures in the Bank’s Annual Report-2017.
The Institute of Chartered Secretaries of Bangladesh exhaustively analyzed the Bank’s Annual
Report-2017 and sieved out the Bank from many aspirants for its outstanding performance,
sufficient disclosures for all stakeholders and its commitment to achieving further excellence in
corporate governance, and compliance with legal and regulatory requirements.
M. Kamal Hossain, Managing Director of Southeast Bank Limited received the award from Abul Maal
Abdul Muhith, MP, Hon’ble Minister, Ministry of Finance, Government of the People’s Republic of
Bangladesh in a ceremony held on 10th November 2018 at a local hotel in Dhaka.
The operations of Southeast Bank are built upon unequivocal emphasis on effective Corporate
Governance. Its objective is to create, promote and build long-term company value. It is now one
of the most disciplined, compliant and admired Bank in the industry. This award will encourage the
Bank enormously and put a responsibility upon the Bank Management to keep up the momentum
of its performance and to improve governance practices further in the coming years.
a bank with vision
Southeast Bank has been awarded as the country's 4th highest Tax payer in
the Banking category.
Southeast Bank Limited has been awarded as the country’s 4th highest Income Tax Payer in the
Banking Category for the assessment year 2017-2018. M. A. Mannan, MP, State Minister, Ministry of
Finance and Planning handed over the Crest and Tax Card to M. Kamal Hossain, Managing Director,
Southeast Bank Limited at the best taxpayer reception ceremony on November 12, 2018. Abul Maal
Abdul Muhith, MP, Finance Minister and Md. Mosharraf Hossain Bhuiyan, Chairman, National Board
of Revenue were also present at the ceremony.
Awards and
Recognition
10
a bank with vision
Awards and
Recognition
11
24 Years of
Glorious Journey
2015 2016
Launching of Telecash as Signing of Revolving Credit agreement for USD 5.00
Mobile Financial Services Product 29.01.2015 million with Asian Development Bank (ADB ) 31.03.2016
Signed Unsecured Facility Agreement with Global Climate
Launching of client acquisition drive through ‘Nibir’
Partnership Fund (GCPF) 25.02.2015
Campaign 15.05.2016
Introduction of Bank’s Modern and full-fledged Training Institute
21.05.2015 Issuance of Subordinated Bond for BDT 5,000.00 million
02.08.2016
Signed funded Loan Agreement with International Finance
Corporation (IFC) 05.08.2015 Introduction of Bank’s Health Care Centre 29.09.2016
Commissioning of ‘SWIFT Sanction Screening Solution’ 30.08.2015 Introduction of Bank’s E-Library 29.09.2016
Introduction of Central Monitory System (CMS) to Launching of ‘Cash Express Remit Card’ for beneficiary
monitor (24X7) all branches 25.10.2015 of Foreign Wage Earner Expatriates 08.10.2016
Introduction of Real Time Gross Settlement (RTGS) 29.10.2015
Bank awarded 1st position in “ICMAB Best Corporate
Implementation of Credit Card Management Software 23.11.2015 Award-2015” 26.10.2016
Partnership with MasterCard Bangladesh and launched the
complete range of Credit Cards (World, Platinum, Titanium and Awarded ‘Tax Card and Trophy’ as 6th highest Tax
Gold) and Prepaid Card 15.12.2015 Payers of the Country in the Banking Sector 24.11.2016
Introduction of Bank’s Call Centre 24X7 16.12.2015 Signed of agreement with Bangladesh Bank for ‘Green
Transformation Fund’ 01.12.2016
Introduction of Chip-based Credit Card 31.12.2015
2014 2013 2011 2010

Issuance of Subordinated Established Central Payment Introduction of Internet Launching of ATM
Bond for BDT 3,000.00 Centre (CPC) at Head Office for Banking 28.02.2011 and ATM Cards with
million. 11.11.2014 International Trade Payments Launching of SEBL 1st own System
15.01.2013 Mutual Fund 23.05.2011 27.03.2010
Introduction of Green
Incorporation of Southeast Signed first Short Term 3rd Rights Share
Award 15.11.2014
Financial Services (Australia) Rollover Loan Agreement Issue
Incorporation of Southeast Pty Limited 18.03.2013 with International Subscription
Exchange Company (South Formation of Southeast Finance Corporation (IFC) Opened 07.07.2010
Africa) Pty Limited Bank-The Financial 28.06.2011
Subscription Closed
15.12.2014 Express-Policy Research Incorporation of 29.07.2010
Institute Green Award Trust Southeast Financial
Opening of Ladies Branches 30.06.2013 Incorporation of
29.12.2014 Services (UK) Limited
Establishment of Southeast Southeast Bank
15.09.2011
Bank Green School 12.09.2013 Capital Services
100% Online Banking
Limited 23.09.2010
17.09.2011
1995 1999 2000 2002

Incorporation of SEBL Initial Public Offer (IPO) Listing with Dhaka Stock Formation of SEBL
12.03.1995 Subscription Opened Exchange Limited Foundation
Certificate of Commencement 25.11.1999 12.04.2000 12.03.2002
of Business 12.03.1995 Subscription Closed Listing with Chittagong
License Issued by Bangladesh 05.12.1999 Stock Exchange Limited
Bank 23.03.1995 24.04.2000
Formal Inauguration 25.05.1995
Inauguration of 1st Branch
25.05.1995
2017 2018
Obtained license from Bangladesh Bank for Awarded 1st Runner Up by South Asian Federation of
Centralizing International Trade and Accountants (SAFA) for Best Presented Annual
Foreign Exchange Transactions 26.01.2017 Report-2016 in the Private Sector Banking Category
Launching of ‘Priority Banking Products’ 31.01.2018
“ESTEEM” 04.03.2017
Southeast Bank distributed Green Award Won Joint 2nd Runner Up Award in SAARC Anniversary
05.04.2017 Award for Corporate Governance 31.01.2018
Organized Scholarship program for
financially challenged meritorious students Received Silver Award for Corporate Governance
20.05.2017 Excellence, 2017 by the Institute of Chartered
Launching of Payment Gateway 25.05.2017 Secretaries of Bangladesh (ICSB). 10.11.2018
Awarded first position for the best
Corporate Governance among private Awarded “Tax Card & Trophy” as the 4th highest Tax
sector banks by Institute of Chartered Payer of the Country in the Banking Sector. 12.11.2018
Accountants of Bangladesh (ICAB)
25.11.2017
Received Silver Award for Corporate
Governance Excellence, 2016” by The
Institute of Chartered Secretaries of
Bangladesh (ICSB) 30.11.2017
Establishment of Cafeteria for Safe food for
Bank’s employees 21.12.2017
2007 2005 2004

Became a member of Launching of Registered as
Global Trade Finance Credit Card Depository Participant
Program (GTFP) of 01.01.2005 of CDBL 17.02.2004
International Finance
Corporation (IFC) 1st to Demat Shares in
23.04.2007
2006 CDS of CDBL in
Banking Sector
2nd Rights Share 16.05.2004
2009 Issue
Subscription
Became a member of
Introduction of new Trade Finance
Core Banking Opened Program (TFP) of Asian
Software 14.02.2009 15.10.2006 Development Bank
Subscription (ADB) 20.10.2004
Launching of 1st
Off-shore Banking Closed 31.10.2006
Unit 30.12.2009
2003
1st Rights Share Issue
Subscription Opened 15.02.2003
Subscription Closed 15.03.2003
Commencement of Islamic Banking
business from Chhagalnaiya Islamic
Banking Branch, Feni 28.07.2003
License Issued from Bangladesh Bank
as a Primary Dealer 28.10.2003
Contents
Letter of Transmittal 16
Forward Looking Methodology 17
Notice of the 24th Annual General Meeting 19
Message from the Chairman 20-25
Review from the office of the Managing Director 26-30
Integrated Reporting 31-33
Corporate Philosophy and Business Model 34-35
VISION AND MISSION

Strategic Objectives, Planning and Priorities 37-40
Core Values, Code of Conduct and Ethics 41-43
Corporate Profile 44-45
Group Corporate Structure 46-47
Organogram of the Bank 48-49
Last 10 Years Financial Indicators 50-51
Composition of Board of Directors and its Committees 52-58
Brief Profile of Board of Directors 60-71
Code of Conduct for Directors 72
Policy on reviewing effectiveness of the Board of Directors 73
Directors’ Responsibility Statements 74-75
DIRECTORS’ REPORT 77-93
Senior Management Team 94-95

Code of Conduct for Senior Management Team 96
Committees of the Management 97-100
CORPORATE GOVERNANCE 103-154
Report of the Bank’s Shariah Supervisory Committee 155-156
MANAGEMENT REVIEW, RESPONSIBILITY AND EVALUATION 159-204
RISK MANAGEMENT AND CONTROL FRAMEWORK

Report on Risk Management Framework, Mitigation Methodology and Risk Reporting by Chief Risk Officer
206-217
Risk Management in Southeast Bank Limited
Disclosure on Risk Based Capital Adequacy (Basel III) 218-233
14
SUSTAINABILITY APPRAISAL AND INTEGRATED REPORTING 236-253
COMMUNICATION TO SHAREHOLDERS & STAKEHOLDERS 256-283
SEBL OUTLOOK
Products and Services 286-288
Central Monitoring System - Round the Clock 289
Call Center 24 X7X365 290
Media Highlights 291-293
Caring for the Employees (Health and Safety) 294
Career Development Program 295
Contribution to National Exchequer 296
Empowering Women 297
Environment - Responsive Bank 298
Southeast Bank Green School 299-301
Financial Inclusion: Mobile Banking Services – Telecash 302
Connecting Customers 303
Service Excellence in Action 304
Bank's Network: List of Branches and ATMs 305-319
Worldwide Correspondents Network 320-335
FINANCIAL STATEMENTS
Independent Auditor’s Report to the Shareholders 338
Consolidated Balance Sheet 343
Consolidated Profit and Loss Account 345
Consolidated Cash Flow Statement 346
Consolidated Statement of Changes in Equity 347
Notes to the Financial Statements 353
FINANCIAL STATEMENTS OF ISLAMIC BANKING BRANCHES 424
FINANCIAL STATEMENTS OF OFFSHORE BANKING 434
FINANCIAL STATEMENTS OF SEBL SUBSIDIARIES 443
STANDARD DISCLOSURES CHECKLIST 490-506

Events-2018 507-512
Proxy Form and Attendance Slip
15
All Shareholders of Southeast Bank Limited,
Letter of Bangladesh Bank,

Bangladesh Securities and Exchange Commission,
Transmittal The Registrar of Joint Stock Companies and Firms,

The Dhaka Stock Exchange Limited and
The Chittagong Stock Exchange Limited
Annual Report of Southeast Bank Limited for

the Year - 2018
Dear Sirs:
Thank you for supporting us in the preceding years.

It is our immense pleasure to lay before you the
Bank’s Annual Report-2018 along with the Audited
Financial Statements (consolidated and solo) as at
and for the year ended on December 31, 2018. The
Annual Report-2018 of the Bank comprises Balance
Sheet, Profit and Loss Account, Statement of
Changes in Equity, Cash Flow Statement along with
Notes to the Accounts. We hope that the report will
be of use to you today and tomorrow.
Best regards,
Yours sincerely,
A.K.M. Nazmul Haider

Company Secretary
16
a bank with vision
Forward Looking
Methodology
A forward-looking statement is a statement that contains predictions, projections and possibilities. It relates
to future events. It often predicts expected future business and financial performance. It contains words
such as ‘expect’, ‘anticipate’, ‘believe’, ‘seek’, ‘will’, ‘may’, ‘would’, ‘presume’, ‘assure’, ‘hope’, so on and so forth.
A forward-looking statement naturally addresses matters that are, to certain degrees, uncertain and may
not happen. In most cases, a forward-looking statement is made in respect of company’s expected income,
earning, business growth, horizontal expansion, cost structure, capital structure, dividends etc. Such a
statement is made based on some assumptions about future events which may happen or may not happen.
This Annual Report-2018 of Southeast Bank Limited also contains forward-looking statements. Since there
are uncertainties about the occurrence of the future events, those should be treated from that viewpoint in
decision-making by the users of the Annual Report.
17
Southeast Bank Limited

24th
Annual General Meeting
2 0 1 5
4 2
1
0
0
1
2
6
2 0 1 3
2 0 1 7
2 2
1 0
0 1
2 8
Venue: Officers’ Club Dhaka

26, Baily Road, Ramna,
Dhaka-1000
Date:
Sunday, June 23, 2019
at 11.00 a.m.
18
a bank with vision
Notice of the
24th Annual General Meeting
Notice is hereby given to all members of Southeast Bank Limited that the 24th Annual General Meeting of
the Shareholders of the Company will be held on Sunday, June 23, 2019 at 11.00 a.m. at Officers’ Club
Dhaka, 26, Baily Road, Ramna, Dhaka-1000 to transact the following business and adopt necessary
resolutions:
AGENDA:
1. To receive, consider and adopt the Profit and Loss Accounts of the Company for the year ended on
December 31, 2018 and the Balance Sheet as at that date together with the Reports of the Board and
the Auditors thereon.
2. To declare dividend for the financial year ended December 31, 2018.
3. To elect / re-elect Directors and to approve the re-appointment of the Independent Director.
4. To appoint Statutory Auditors for the term until the next Annual General Meeting and fix their
remuneration.
5. To appoint the Compliance Auditor as per Corporate Governance Code for the year 2019 and fix their
remuneration.
6. Miscellaneous, if any, with the permission of the chair.
By order of the Board
Dated: Dhaka A.K.M. Nazmul Haider

May 30, 2019 Company Secretary
NOTES:
a) The “Record Date” was on Thursday, May 23, 2019.

b) The Shareholders whose name would appear in the CDS/Register of Members of the Company on the Record date
shall be entitled to the dividend and attend the AGM.
c) Any member of the Company eligible to attend and vote at the Annual General Meeting may appoint a proxy to
attend and vote on his/her behalf. Proxy Form or the Power of Attorney duly signed by the Member and stamped
with requisite stamp must be submitted at the Registered Office of the Company at least 48 hours before the
meeting.
d) Attendance of the Shareholder/Attorney/Proxy shall be recorded up to 11.00 a.m. at the entrance of the meeting
venue. Attendance slip has to be signed and submitted at the Registration Counter. The signature must agree with
the recorded signature.
e) Annual Report of the Bank, Attendance Slip, Proxy Form along with the Notice will also be available in the website
of the Company at www.southeastbank.com.bd in due course. The Hon’ble Members may also collect the Annual
Report, attendance Slip and Proxy Form from the Investors' Relation Department of the Company.
f) All members are requested to update their respective BO Accounts with 12 digits Tax payer’s Identification Number
(e-TIN), Bank Account Number, E-mail address, Mailing address and other related information through their
respective Depository Participants (DP).
g) As per Bangladesh Securities and Exchange Commission’s Circular No.SEC/CMRRCD/2009-193/154 dated October
24, 2013, and the regulation 24 (2) of the Stock Exchanges (Listing) Regulations-2015 “no benefit in cash or kind,
other than in the form of cash dividend or stock dividend, shall be paid to the holders of equity securities” for
attending the 24th Annual General Meeting of the Bank.
19
Message from the

Chairman
20
a bank with vision
Bismillahir Rahmanir Rahim
Dear Shareholders,
It is with great pleasure that I

heartily welcome you all to the
24th Annual General Meeting of
the respected Shareholders of
the Bank and sincerely thank you
for your continued interest and
support for the sustained growth
of the Bank over the years. On
behalf of the Board of Directors
of the Bank, this is my privilege
to present before you the
Audited Financial Statements for
the year ended 31, December,
2018 reflecting the consistent
performance of the Bank in
respect of operational results
and standard of Corporate
Governance and regulatory
compliance. I would also take
this opportunity to highlight our
Alamgir Kabir, FCA
strategies to achieve further
Chairman operational excellence in our
business operations in the
future.
21
1. Synoptic Review of Financial system and strengthening supervision. The prime

Performance: 2018 objective of Bank’s Corporate Governance system
is to enhance stakeholders’ value by pursuing
By the grace of Almighty Allah (SWT), Southeast responsible and ethical practices of business
Bank Limited (SEBL) delivered strong operating and upholding high standard of disclosure and
performance and cost efficiencies as well as transparency.
significant returns and growth in all key business
indicators in 2018. I am pleased to announce Our Annual Report contains adequate disclosures
another set of record results in 2018. During the reflecting compliance of all applicable Accounting
year, despite many challenges, the bank made a Standards. In recognition, over the past few years
notable growth through reshaping our business Southeast Bank received a number of awards from
strategies and processes and remodeling our distinguished institutions on corporate governance
service quality and delivery channel. A glimpse of and quality of disclosure and transparency reflected
in the Annual Report. An elaborate report on
the performance is shown below:
Corporate Governance of the Bank in 2018 is
included in this Annual Report.
Bank’s total loans and advances portfolio increased
by 14.23 percent to BDT 33,354.91 million in 2018,
3. Code of Conduct of Directors
over BDT 234,316.72 million in 2017. Bank’s total
asset increased by 12.46 percent to BDT 42,287.62 The Board of Directors of the Bank in its 410th
million in 2018, over BDT 339,288.05 million in meeting held on December 24, 2012, inter alia
2017. The Bank’s total deposit increased by 10.56 approved, the Code of Conduct for the Directors of
percent to BDT 28,506.72 million in 2018, over the Bank. The Directors are sincere in abiding by the
BDT 269,828.08 million in 2017. During the year Code of Conduct. There had not been any breach
2018, the Bank made an operating profit of of the Code of Conduct by any Director of the Bank.
BDT 9,783.00 million as against BDT 9,062.30 million The Directors are regularly apprised of the relevant
in 2017. guidelines given by the regulatory authorities so that
they can discharge their responsibilities effectively
There was increase of cost of fund (COF) and it and efficiently.
reached 7.81 percent at year end. The total deposit
of the Bank including Islamic Banking Deposits 4. Customers - Our Partners of Progress
increased by 10.56 percent over that of last year.
It led to a healthy Loan to Deposit Ratio of 81.55 Our first and the highest priority is to provide quick
percent. The net interest margin of the Bank and effective services and maximum satisfaction
reached 3.81 percent at the end of 2018. The Bank to the customers and we always work for new and
was able to increase Net Interest Income to BDT better ways to serve them. This ideology is widely
5,199.94 million in 2018 from BDT 4,027.69 million practiced in the Bank.
in 2017. Fees and other income during the year
Our customers need a trustworthy partner and
2018 had a good growth of 6.86 percent over that
that we are. As a partner of progress, we provide
of 2017. The good contribution of Fees and other
them financial flexibility and service diversity. With
income to Bank’s total income is a clear testimony of
our profound understanding of the business
Bank’s strength. We are looking forward to building
and needs of our customers and the challenges
better and innovative processes and structures to being faced by them, we focus on delivering highly
gain a competitive advantage for brighter business customized products and services. Southeast Bank
result in the coming days. has become a synonym of quality banking services
and products. It has a diverse array of products and
2. Governance and Transparency services tailored carefully to cater to the needs of
all segments of customers in the industry through a
One of the basic policies of Southeast Bank fair deal. We always emphasize on long term ethical
Limited is to strengthen its corporate governance customer relationship considering high productivity
status by practicing efficient corporate governance through professional team work, creativity and
and compliance processes through meeting all customer-focused marketing.
regulatory requirements. We have established
ourselves as one of the most compliant banks in the Our operational strategies are structured with
industry by establishing responsible management intelligent planning to address the special and
22
a bank with vision
often complex needs of the customers. It is our 6. Internal Control System

ongoing endeavor to understand the unique
requirements of our customers and to cater to The Bank management is held responsible
these requirements to the best of our abilities. for putting in place a sound system of internal
We regularly carry out required research, analysis controls to safeguard stakeholders’ interest. Board
and survey to find out what the customers expect. of Directors of Southeast Bank Limited has the
We obtain meaningful and actionable feedback ultimate responsibility to make significant policies
from customers and use it to improve our services to ensure compliance at all levels in the bank’s day-
and exceed the expectations of our customers to-day activities. The Audit Committee of the Bank
by offering new products and technology-based reviews on regular basis adequacy and effectiveness
support. Our customers increasingly want solutions of the system of internal controls in compliance
rather than products. with the guidelines of Regulatory Authorities. The
Internal Control & Compliance Division (ICCD) has
The Bank has also developed and implemented been organized in line with the guidelines of the
AML and CFT compliance policy. Under the policy, regulatory Authority. It reports directly to the Audit
customer due diligence is being done, transactions Committee and ensures compliance of all internal
of clients are being monitored, reporting to control systems and procedures and directives
regulatory authority is being made, sanction lists given by the Audit Committee and the Board of
are being screened while allowing any transaction Directors.
and utmost care is being exercised in case of
handling walk-in and unknown customers. We have There is maker and checker concept with due areas
also successfully introduced a ‘Customer Charter’ of accountability for each and every transaction
in line with the guidelines of the Bangladesh Bank. and segment of work in the Bank. The internal
We spend money on things that matter to them and control system is designed to meet the purposes
add value to the Bank in terms of image and profit. of completeness, accuracy, reliability of financial
transactions, justification and reasonableness of
5. Risk Management Bank’s operational aspects.
Recognizing the crucial role of risk management 7. Credit Policy of SEBL

for sustainable growth, the Bank has developed
necessary systems and processes for assessment Southeast Bank has a comprehensive credit policy
and management of all potential strategic and encompassing both Conventional and Islamic
operational risks in the light of Bangladesh Bank’s banking modes of lending. It comprises clearly
Risk Management Guidelines. stated universal and basic operating concepts,
policies and standards for credit operations in
Southeast Bank builds its approach to risk accordance with bank’s business objectives and
management on the concept of three lines of rules of conduct of credit in line with the guidelines
defence, signifying a clear division of responsibilities of Bangladesh Bank. We promote understanding
between the risk owners and control functions. of and strict adherence to our credit policy among
Strategically, Board of Directors, through the all our concerned employees. Our assessment for
Board Risk Management Committee and the corporate loan or investment involves varieties of
senior management team, sets up risk governance financial analyses including cash flow to predict
structure and risk philosophy, endorses risk an enterprise’s capability of loan or investment
strategies and reviews and approves risk policies as repayment and its prospect. While assessing credit
well as the risk threshold in line with the bank’s risk worthiness, we focus on a number of principles
appetite. These limits are continuously monitored considering qualitative and quantitative judgment
by an experienced risk management team and including, but not limited to, borrowers’ background
overseen by Board Risk Management Committee. and character, risk factors, purpose of the credit or
The Risk Management Committee of the Board investment facility, tenor of the Bank’s exposure,
reviews and monitors the overall risk management security offered, business segment scenario,
system of the Bank and reports to the Board from pricing, national policy etc. While approving a loan
time to time. The risk management system of SEBL or investment, we try to ensure that our power
has been described in “Risk Management Report” of sanctioning a loan or investment does never
section of this annual report. over-power our fair judgment. The credit policy
23
focuses on inclusive and productive use of credit challenges to our business operations and also
with distinct attention to adequacy of credit flows grab the opportunities as and when they arise. We
to agriculture, SMEs, Women entrepreneurship and are committed to embrace technological change
we are also keen to move fast for green banking to and innovations to further develop attractive value
protect environment. The total volume credit grew propositions to our clients. We will continue to strive
by 14.23% at the end of the year 2018. to improve further our operational efficiency with
the main focus on creating wealth for shareholders.
8. Our Unique Advantage: Our Human
Capital 10. Adding to our list of Accolades
and Achievements: Symbol of
Southeast Bank Limited has always pursued a Inspiration
balanced Human Resource policy. We facilitate
greater engagement and reap all the competitive Southeast Bank greatly weighs good corporate
advantage that a productive and skillful manpower governance and operational excellence. These are
provides. We continue to strengthen our workforce our fundamental requirements in our aspiration to
management practices. Our people are undoubtedly remain a leading banking institution in our country.
the core asset of our bank and we acknowledge We do have strategy, intent and ability to take the
their hard work and dedication in elevating our Bank forward further. In recognition, The Institute
bank to where it is today. We are always conscious of Chartered Secretaries of Bangladesh (ICSB)
of the importance of retaining and attracting the awarded our Bank Second Position (Silver Award) for
best talents. Our human resource management continuous commitment to Corporate Governance
policies are designed on the principles of care, Excellence for the year 2017.
capacity building, knowledge sharing and fairness.
Besides hiring best resource on purely merit basis, Southeast Bank Limited received Tax Card and
performance of every staff member is evaluated on Crest from National Board of Revenue (NBR),
a uniform benchmark to help promote a culture of Ministry of Finance, Government of the People’s
merit and fairplay in the organization. Republic of Bangladesh. Southeast Bank was given
the country’s 4th highest Tax Payers Award in the
We provide useful behavioral framework for Banking Institutions Category for the assessment
resolution of dilemma that our employees year 2017-2018.
individually encounter while doing their everyday
activities. We help them make responsible and 11. Caring about Our Communities for
consistent professional decisions selflessly. We Societal Upliftment
provide a competitive compensation and incentive
package to motivate our employees. The employees We believe that a stable environment and a strong
are provided with adequate opportunities for their economy are correlated and preconditions for
professional development at home and abroad. progress of the country. The Bank is closely related
with the communities where it runs its business. We
9. Calibrating our Strategic Path for always extend our hands towards underprivileged
the years to come groups of the society and consistently promote social
and economic upliftment of the people at the hour of
We have navigated in the banking sector of need. Our focus is on sports, arts & culture, education,
Bangladesh for the last 24 years. As we step into and entrepreneurship and on identifying the links
the realms of 2019, we are shaping our strategies between them. We launched and contributed in
to better suit the changing economic and financial different programs with the desire to generate more
market scenario and taking pragmatic steps to social impact through our activities. Our CSR goes
accelerate growth. We are well-positioned on a far beyond charity and the engagements of our CSR
firm platform to progress further in our chosen are steadily increasing in depth and diversity both in
areas of operations. Over the years, we have built expenditures, financial inclusion drives, greening the
up a strong foundation for the future to deliver a internal practices and processes, and in lending to
leading performance and competitive returns that environment friendly projects.
our shareholders want to see. Our success truly
portrays that we keep a watchful eye and analyze We acknowledge our social responsibility well and
our strengths and weaknesses to meet the emerging align our business strategies with our culture. SEBL
24
a bank with vision
is working towards improving the energy efficiency I conclude by conveying my very sincere and special
of its operations and optimizing the use of natural thanks to our valued customers, patrons, well
resources. Moreover, the Bank has created a Trust wishers, the Government of the People’s Republic
in association with The Financial Express and Policy of Bangladesh, Bangladesh Bank, Registrar of
Research Institute as part of its Corporate Social Joint Stock Companies and Firms, the Bangladesh
Responsibility (CSR) to create awareness in green Securities and Exchange Commission, the Dhaka
retention and green business. Stock Exchange Limited, the Chittagong Stock
Exchange Limited and all others concerned for their
We created Southeast Bank Foundation to carry unwavering support and co-operation.
out CSR related activities in a most organized way.
We are serving the society as part of our Corporate I also look forward to their continued support,
Social Responsibility (CSR) by giving stipends to poor co-operation and guidance in the days ahead. I
and meritorious students, distributing warm clothes reiterate with firm commitment that we will remain
to winter-hit people and contributing to the different disciplined, compliant and result-oriented in all
relief funds. In the year 2018, we spent BDT 208.53 our endeavors and in return seek their continued
million for activities related to CSR which is inclusive cooperation.
of the CSR expenditures incurred by Southeast
Bank Foundation. During the year the Bank made Finally, I thank the respected shareholders for
significant donations to the Prime Minister’s attending the 24th Annual General Meeting and
Relief Fund for helping cold and flood hit people contributing significantly to the deliberations and
across the country including displaced Rohingyas, adoption of resolutions against the agenda.
development of cultural activities, sponsoring Jubo
games and so on. May the Almighty Allah bestow on us His infinite
blessings.
As a Bank born and bred in Bangladesh, we have
also a deep commitment to the Country’s economic Allah Hafiz.
development and preservation of the environment.
We believe our conscious choice of protecting Thank you once again for being with us.
the environment today will lead to a better and
sustainable tomorrow. We are also one of the With warm regards,
leading tax payers of the country. We contribute
to the society by paying taxes to the national
exchequer timely. During the year 2017-2018 we
contributed an amount of BDT 5,771.73 million to
the National Exchequer. Alamgir Kabir, FCA
Chairman
12. Acknowledge Our Stakeholders
I am thankful to the Almighty Allah for the business

success of the Bank in 2018 amid competitive and
challenging business environment. I also take the
opportunity to thank the Directors of the Bank
for their support and guidance during the year
under review. Their collective wisdom substantially
contributed to our success. I also thank our
Management and the members of the staff under
the leadership of the Managing Director for their
loyalty, support and relentless efforts for Bank’s
qualitative and quantitative improvements. I respect
their zeal to work hard to reach newer heights of
success. Our shareholders’ unflinching support and
confidence are vital to the Bank’s continued growth
and development. We thank them and pledge to
maintain the Bank’s legacy.
25
Review from the office of the

Managing Director
We are delighted to present
the Bank’s operating results for
2018 which is the evidence of
sustainable business growth
of the bank. 2018 was a very
challenging year for banks. By
the grace of almighty Allah,
Southeast Bank’s performance
for the year remained stable with
good momentum for growth. We
have consolidated our position
over the years through emphasis
on effective execution of our
strategies, sensible decision
making, robust risk management
framework and good governance
practices. Our operating results
are impressive and we expect
the same momentum to
continue in the days to come.
Prudent direction and guidance
of the Board of Directors and
acumen and dedication of our
experienced management team
played a key role in our business
performance.
26
a bank with vision
M. Kamal Hossain
Managing Director
27
Economic Reflection Despite the challenging landscape, low interest rate

and intense market competition, Southeast Bank
In 2018, the global economy recovered at a managed to deliver on various key performance
faster speed than expected, with the developed indicators. Some of those achievements are
economies like USA, Europe and Japan growing depicted below:
well. China and India grew faster than the other
emerging economies. Brazil, Russia and other Southeast Bank achieved operating profit
emerging markets also remained on a faster (before provisions and tax) of BDT 9,783.00
growth track. The developed economies, typically million for the year 2018 compared to last year’s
the USA, tightened their monetary policies and BDT 9,062.30 million which is 7.95 percent higher
a majority of the emerging markets remained than last year. Net profit after taxation reached
stable despite somewhat loose monetary policies. BDT 2,473.21 million for 2018, a 116.63
Global economic growth improved during 2018 percent rise over 1,168.63 million from last
with expansion in both advanced and developing year. Earnings per share for 2018 is BDT 2.35
economies. Geopolitical developments in various compared to BDT 1.11 of 2017.
regions might also affect the economy and financial
markets through their impact on commodity prices, Bank’s balance sheet increased by 12.46
risk appetite and capital flows. percent over December 2017. The Bank added
BDT 28,506.72 million to its deposits base in
2018 was election year but Bangladesh’s economy 2018. As such, total deposit base of the Bank
continued to gain momentum, aided by decisive reached BDT 298,334.79 million with 34.22
policy decisions taken by the Government of percent low cost deposit at the end of 2018.
Bangladesh in the last few years. The accommodative
monetary policy stance, increase in development Bank’s aggregate loan portfolio grew by 14.23
spending, growth in private sector credit, easing percent during the year in an environment of
energy supply, continuing work on infrastructure low interest rates. As such total loan portfolio
and energy projects and growth oriented policies reached BDT 267,671.63 million at the end of
were primarily instrumental in achieving the recent the year. The Bank has continued to improve
performance of the economy. The large-scale the credit portfolio mix towards retail, SME and
manufacturing growth picked up momentum and higher rated corporate loans. The proportion of
agriculture sector achieved its growth target mainly SME loans in the portfolio increased to 86.49
due to supportive policies and increased agriculture percent as on December 31, 2018.
credit disbursements. Stable exchange rate and oil
prices in local market during 2018 helped contain In 2018, total Import business grew by 12.50
inflation at an expected level. percent to BDT 242,294.82 million and export
business by 13.63 percent to BDT 190,402.80
Bangladesh’s economic prospects for 2019 seem million.
promising. Therefore, the GDP growth target of
7.80% for fiscal 2018-2019 appears attainable. While loan growth was accelerated, we kept a
Manufacturing sector is expected to benefit from sharp eye on portfolio quality. As a result, the
higher development spending, improvement in Non-performing loan’s ratio reduced to 5.87
political and security conditions and the trend of percent.
low cost of borrowings. To support the acceleration
in the economy, banking sector of Bangladesh will The Bank has added over almost 64,000 deposit
need to keep pace with it. customers to its base. Total deposit customer
of our bank stood around at 700,000 at the end
Business and Achievements of the year.
Under the low interest rate regime, significant The Bank has been able to increase its market
emphasis has been given on productivity share in the remittance business which grew
improvements to improve overall efficiency. These from BDT 95,405.43 million as on December 31,
actions, along with an overall control on costs, 2017 to BDT116,803.00 million as on December
allowed the Bank to meet its business objectives. 31, 2018.
28
a bank with vision
Asset Quality system especially for online transaction through

introduction of Two Factor Authentication (2FA),
Banking sector is reeling under bad loans and heavy One Time Password (OTP) etc.
provision burden. To a certain extent, we are also
exposed to this problem. As on December 31, 2018 Network Building
Southeast Bank reported Gross Non-Performing
Loans (GNPLs) of BDT 15,558.85 million as against Our branch footprint comprises of 135 branches
BDT 13,878.53 million as on December 31, 2017. with the addition of 03 new branches opened during
Southeast Bank has taken multidimensional 2018. Through our network of 113 conventional
initiatives for reducing non-performing loans. branches, 05 Islamic banking branches, 15 SME and
We hope the process of resolution of the asset Agri Branches, 02 Ladies Branches and 02 Off-shore
quality pressures and NPL issues is likely to witness Banking units, we reach our customers spread
substantial progress in the days ahead. across the country. We also have a fast growing
Alternative Delivery Channel (ADC) which extends
Core Assets the Bank’s reach beyond its branch network.
I would like to acknowledge the hard work and Capital Management

dedication of all members of Southeast Bank, who
are undoubtedly the core asset of our bank. It is my The Bank is taking all necessary steps to remain
utmost belief that committed and professional team fully compliant with the Basel III transition plan,
is the main strategic advantage of Southeast Bank which includes raising the Capital to Risk-weighted
over its peers. The talents, passion and commitment Asset Ratio (CRAR) threshold by the end of 2018.
of our people, The Southeast Family, has been the Tier 1 common equity capital ratio exceeds the
cornerstone of our sustained success over the minimum requirement of Basel-III standards. As
years. We are fortunate to have a diverse group of such the CRAR of the Bank stood at 12.38 percent
qualified, trained and dedicated employees across as on December 31, 2018 which is well above the
Bangladesh. regulatory requirement of 11.875%.
Customer Centricity Financial Attributes
Customer satisfaction is at the heart of our The Bank always prepares consolidated financial
operations. With a thrust to achieve operational statements of the Bank and its subsidiaries. Side by
excellence, we continue to invest in our people side, separate financial statements of the Bank is
so that we can collectively provide quality and prepared in accordance with Bangladesh Financial
reliable customer service efficiently with meticulous Reporting Standards (BFRSs), the requirements
attention towards regulatory compliance. of the Bank Companies Act, 1991, the rules and
regulations issued by Bangladesh Bank (BB),
Technological Progress the Companies Act, 1994, the Securities and
Exchange Rules, 1987 and other applicable laws
Technological leadership is an absolute must and regulations. Significant accounting policies and
for the delivery of value to all our stakeholders estimations detailing nature of the components of
amidst rapidly changing life styles and paradigms. financial statements are adequately disclosed. Any
Southeast Bank is committed to place cutting significant changes, if made, are aptly addressed
edge technology at the forefront of our delivery along with its impact in the financial statement in
channels and operations. While driving technology Section 3 of Notes to the Financial Statements.
to new heights, we must remain ever vigilant about
information and cyber security. Southeast Bank Important financial indicators of current year
makes continuous efforts to strengthen its ability are presented in comparison with performance
to prevent, detect and respond to cyber-attacks by of the bank in preceding five years. A thorough
improving governance and leveraging technology presentation comparing with prior years’ business
advancements. In the process, recently, southeast performance has been shown in this report under
Bank has further strengthened its security segment ‘Stakeholders’ Information.
29
Looking Ahead Recovery against Non-performing loans

especially rescheduled, classified and written-
We remain hopeful that stable political environment off loans would be strengthened to further
and the Government multidimensional approach consolidate the credit portfolio.
to accelerate economic growth will help create
congenial environment for business growth in years The Bank would continue to invest in technology
ahead. and preserve its digital leadership by offering
best in class digital products to customers
The environment in which we operate is evolving and automating internal processes to increase
rapidly and we remain prepared to navigate the efficiency.
challenges and capitalize on the opportunities. The
environment of low interest rates and resulting The Bank would maintain a strong capital
compression on banking spread is likely to continue position with a view to maintaining strong
in the foreseeable future, however industry driven Capital to Risk-weighted Asset Ratio.
loan growth, along with an off-take in export led
manufacturing and private sector credit will present The Bank would leverage all capabilities to be
opportunities for which Southeast Bank is well the trusted partner in serving the customers
positioned. and become the banker of choice.
In the light of the outlook for the Banking Sector in Note of Thanks
general, our Bank will be focusing on NPL reduction
and to improve efficiency and productivity. Bank I take this opportunity to thank the members of
is poised to improve the fundamentals and post the Board and Bangladesh Bank for their valuable
strong results in 2019. support and guidance as the Bank continues to face
challenging times. I am thankful to our investors
Strategies for the trust that they have placed in the Bank. The
excellent results for 2018 would not have been
In 2018, the Bank continued to focus on its possible without the loyalty of our customers who
strategic priorities of improving the portfolio quality have continued to build stronger relationships and
and taming down non-performing loans. Within patronize our products and service offerings. On
portfolio quality, the emphasis was on improving the behalf of the Bank, I express my appreciation to all
portfolio mix with a focus on retail and SME lending, our customers and most importantly I would like
lending to higher rated corporate, resolution of to acknowledge our employees whose painstaking
stressed borrowers and proactive monitoring of commitment, hard work and dedication has
loan portfolios across businesses. In 2019, the enabled successful delivery of our promise to all our
Bank would aim at risk calibrated profitable growth stakeholders. It is the support and encouragement
through focusing on the following areas: of all our stakeholders that enhances our strength
and helps us stay focused on our goal.
The Bank would focus on sustaining its robust
deposit base and increasing the proportion of
low cost deposits.
The priority would be on growing the retail,

SME and higher rated corporate portfolio with
a focus on enhancing the customer franchise.
The bank would maintain strong Credit

Monitoring with a view to arresting fresh M. Kamal Hossain
slippage of any loan. Managing Director
30
a bank with vision
Integrated
Reporting
An integrated report is a concise communication about how an organization’s
strategy, governance, performance and prospects, in the context of its external
environment, lead to the creation of value in the short, medium and long
term. Modern business world has embraced this form of reporting as a part of
its responsible and proactive sense of communicating with its stakeholders.
Southeast Bank Limited has already transformed its integrated thinking into
a set of disclosures termed as Integrated Report. The Bank has always been
proactive in its strategies in the form of taking into account the integrated
thinking in business ideology and value creation. The Bank does believe in
dealing with our clientele with the best practice of responsible banking along
with the idea of creating sustainable value for all the stakeholders.
The Bank through its pragmatic operation and Bank Company Act, 1991 (Amended upto 2018)
ethical banking has embedded the idea of integrated
thinking in its overall strategic attributes. The very Bangladesh Bank Regulations
aspect of sustainable growth has evolved in the
The Companies Act 1994
entity’s outlook. Therefore, the bank takes pride in
integrating social and environmental growth in the Bangladesh Accounting Standards
overall business operation to achieve both social
and corporate goals. Bangladesh Financial Reporting Standards (BFRS)
Scope and Boundary of the Report Financial Institutions Act 1993
Securities and Exchange Rules 1987

The Integrated Report covers the period from January
01, 2018 to December 31, 2018. This report aims to The Income Tax Ordinance, 1984
provide a transparent and balanced appraisal of the
material issues that faced our business during the And other applicable laws and regulations of
year under review and that impacted our ongoing the bank
ability to create value. The Financial information
regarding sustainable value addition has been Materiality
presented in respective segments along with
independent audit reports and evaluation. Non- Southeast Bank Limited has always been vigilant
financial issues and information regarding the bank in addressing the material issues which have
had been demonstrated throughout the report
substantial impact on the strategic direction and
in different segments narrated as Non-financial
operation of our business. Several non-financial
indicators, Sustainability Report, Director’s Report,
etc. During preparation of the report there had been parameters and our performance in the relevant
no material change in the reporting of financial and parameters were disclosed considering their
non-financial issues regarding the bank. materiality in decision making and formulation
of strategic directions. Environmental obligation
We have prepared and presented financial and financial inclusion having substantial material
statements and other reports in compliance with impacts were prioritized through disclosure of
the requirements of explicit steps taken by the bank.
31
Assurance Approach
Internal
The bank scrutinizes the details of the reports Audit
submitted and assures the uniform acceptance of Assurance
the report by its assurance model comprising of
different independent and responsible authorities.
We do believe that our combined assurance model
creates the philosophy that is embedded in every Assured
and Reliable External
aspect of our business. Management Information Audit
Review to the Assurance
Stakeholders
We have engaged different external assurers and
auditors to ensure the credibility of the report as
under:
Chart: Combined Assurance Model of information to Stakeholders
Pinaki & Company,

Financial Statements Audit Our integrated capitals have substantial impact
Chartered Accountants
on our strategic operation. The cycle of integrated
Corporate Governance Syful Shamsul Alam & Co., thinking and reporting shall result in productive
compliance Chartered Accountants capital allocation and act as a force for financial
stability and sustainability. We also do believe that
TAX Consultant Akhter Abbas Khan & Co. each of the integrated capitals depicted below has
been contributing immensely for the organization to
Credit Rating Information achieve its vision to be a premier banking institution
Credit Rating Agency and Services Limited in Bangladesh and contribute significantly to the
(CRISL)
national economy.
Human
 Knowledge based
functioning
 Ensuring managerial
performance
 Proper allocation of
duties
 Establishing excellent Financial
Intellectual
culture
 Financing and Funding
 Knowledge Based managed from
functioning depositors and investors
 Efficient Process  Strong Deposit Base
Development  Diverse investment
 Competent Core Banking portfolio
System  Steady Interest and
non-Interest income
Integrated
Capital
Manufactured Natural
 Large number of branches  Meticulous due diligence
with efficient service of Environmental
 Integrated Network checklist
providing off the centre  Ensuring Green Banking
services Initiatives
 Convenient Mobile  Incorporating
Banking and Social Environmental Risk
ATM services Rating
 Proficient Stakeholder
Engagement
 Strong adherence to
Corporate Social
Obligation
 Consistent contribution
to the national
exchequer
32
a bank with vision
Integrated Capitals of Southeast Bank Limited

Key drivers that Create
Value to our organization
Diverse Preeminent
Our brand Clear State of
investment trend of the art
image in the divergence Continuous Pursuit of
portfolio with compliance in technologies innovation to Disciplined
industry for our corporate between Board
steady payback and Manage- offering most diversify our Growth
excellent governance and convenient
and ensuring ment Functions service Strategies
products and regulatory operation
asset quality obligations
services
Value Creation Process
Strong Our
Corporate Employing Technological Financial
Governance efficient brilliance in Reporting Operational
and Resource and Efficient Excellence
Supporting Activities
personnel Business
Management Operation Information
Meeting all regulatory Planned Work Incessant Banking International Accounting Different divisions with
requirements and Schedule Service Standards dedicated essence
disclosures Proficient Recruitment Efficient Electronic Financial Accounting activity
Hiring professionals and Selection Fund Transfer System Management Accounting Knowledge based
with strong Scrutinized Competent Core Comparative Reporting functioning
background and Performance Appraisal Banking System (CBS) for Decision-Making Ensuring managerial
knowledge State-of-the-Art Mobile and Online Management information performance
Effective Risk Training and Banking systems Proper allocation of
Management Development Monthly, Quarterly, half duties
Efficient Internal Yearly and Annual Establishing excellent
Control and Regulatory analysis of performances culture
Compliance System
Sustainable Value Created
Market Value
Optimization Fund Lending & created for Excellence in
with efficient Management Investment the Client
products stakeholders Service
Primary Activities
Exploring New market Mobilizing Low Cost Lending through Loan Proficient Stakeholder Speeding Customer
through branch Deposit from retail Products Engagement Service through
establishment client base Strategic investments Consistent contribution customer need
Business And Product Capital Accretions Emphasizing Small and to the national recognition
segmentation Arranging Funds from Medium Enterprise exchequer Design prominent
Direct Marketing overseas sources for Financing Satisfactory employee product facilities
Policy Development Offshore Banking Long term Foreign benefit Initiating customer
service Currency loan for Incessant customer oriented culture
Loans from Other corporate clients relationship Strengthening trust
Banks Agricultural and Engagement in CSR and partnerships with
Central Bank Loans and renewable energy activities customers
Refinance financing Growing as our
Selection and appraisal customers grow
of quality asset portfolio Online Banking
Board Responsibility as integrated performance of the bank has been

presented fairly.
The Board, along with Audit and Risk Management
Committee, acknowledges the responsibility to
ensure the integrity of this integrated report. The
Board believes that all the material issues of the M. Kamal Hossain
bank have been addressed in the report as well Managing Director
33
Corporate Philosophy
and Business Model
Our corporate philosophy centers around our corporate missions, business
domain and management goals. We devote our talent and technology to
the creation of value for our stakeholders. Everyday our people bring this
philosophy to life and to their work. Our philosophy cannot be bound by a
few words or issues. Yet we narrate the followings:
CUSTOMERS CONTROL MECHANISM
Our company philosophy is simple. It is customer- Our control mechanism is practiced at all levels.
friendly and fully responsive to customer needs We strive to control the behavior of the employees.
and expectations. We carry out required research, Our control mechanism is closely linked to
analysis and survey to find out what the customers efficiency, quality, innovation and responsiveness to
expect. We leverage technology and expertise to customers.
provide the best services and convenience to the
customers. We spend money on things that matter QUALITY AND PRODUCTIVITY
to them and add value to the Bank in terms of image
and profit. That is why our customer-base has been Our philosophy is geared towards boosting
steadily expanding over the years. productivity and maintaining a reliable high
quality service standard. In the process of delivery
HUMAN RESOURCE of service, co-ordination is the essence of our
business. Our philosophy is to achieve our goals
through a combination of budgetary control, pay for
Our people are smart, professional, well-qualified,
performance, incentive system, unique corporate
energetic and sincere. They are passionate about
culture etc. It continuously stresses key values.
what they do. Since they enjoy their work, it
becomes easy for them to work hard. They do not
SUCCESS
follow any set model, rather they create models.
They completely own what they plan and do. They
Our people work hard to succeed. Success is a good
have a longing to be significant. So, they are a part fortune. It comes from their aspiration, desperation,
of something noble and purposeful. perspiration and inspiration. As our people do
more, they earn more and get more.
COMMUNICATION
BUILDING FUTURE
Our philosophy is to reduce lines and layers
of communication. We believe in free flow of Our philosophy is to make decisions today to
ideas within the Management Team. The Senior improve performance tomorrow. We know a
Management Team is also open to ideas suggested company which is successful has to continue to be
by the lower level executives and officers. At the successful. We do not fear our future, we shape it
same time, our decision making process is short by our corporate conduct. Our hope is far greater
but quick. than our fear.
34
a bank with vision
Business Model Canvas of

Key Partners Value Proposition Customer Segments

Customers Complete Solution of Business Needs Corporate Clients
Shareholders One Stop Service for Personal Banking Small & Medium Enterprises
Employees Innovative Tailor-made Products Non-Banking Financial Institutions
Regulators Timely, Cost-effective & Superior Services Banks
Strategic Partners Geographically Well-spread Availability Individuals/ Retail Clients
Institutional Clients
Govt. & Non-Govt. Organizations
Key Activities Cost Structure Customer Segments

Deposit Services Interest Expense KYC – Know Your Customer
Lending Operating Expense Personal Visit
International Trade Services Capital Expenditure Phone Call/ Email/ SMS
Remittance Service Automated Services
Treasury Solutions Special Campaign
Islamic Banking Service In-depth Analysis
Off-shore Banking Individual Solution
Continual Review
Research & Development
Receiving Feedback
Key Resources Revenue Streams Delivery Channels

Highly Professional & Experienced Board Interest Income Branches
Nationwide Network Investment Income ATMs
Worldwide Correspondent Network Fees, Commission etc. Internet Banking
Highly Skilled Staff Other Operating Income Mobile Banking
Dedicated Service Attitude Call Center
Wide Range of Products Subsidiary Companies
Strong IT architecture
Strong Capital Base
35
36
a bank with vision
Vision
To be a premier banking
institution in Bangladesh and
contribute significantly to the
national economy.
Mission Statements
High quality financial services with
state of the art technology.
Customer Service Excellence / Prompt
Customer Service.
Sustainable growth strategy.
High ethical standards in business.
Steady return on shareholders’ equity.
Innovative banking at a competitive
price.
Attraction and retention of quality
human resource.
Commitment to Corporate Social
Responsibility
37
Strategic
Objectives
a) Maintaining a high quality assets portfolio to operation, green banking and environmental
achieve strong and sustainable returns and to risk management.
continuously build shareholders’ value.
i) Practicing efficient corporate governance and
b) Maintaining adequate capital in line with risk compliance processes through meeting all
appetite of the Bank. regulatory requirements and disclosures in line
with national and international best practices
c) Strengthening trust and partnerships with by ensuring best internal control monitoring
customers by focusing on the Bank’s core values practices.
of quality customer service, professionalism,
teamwork and integrity. j) Upholding Bank’s brand image as a customer
friendly bank through efficient and prompt
d) Hiring professionals with strong background customer service, product diversification with
and knowledge. a view to establishing a long term profitable
relationship with our customers.
e) Strengthening technologies that reduce
operational risks and promote the k) Serving the society as part of our Corporate
implementation of best practices in the industry. Social Responsibility (CSR) by giving stipends
to poor students, distributing warm clothes to
f) Developing innovative products and services winter-hit people, providing financial assistance
that attract our targeted customers and market to disadvantaged people and contributing
segments. to different relief funds. We also contribute
to the society by paying taxes to the national
g) Exploring new avenues for growth and exchequer timely.
profitability.
l) Extending banking services to the un-banked
h) Practicing efficient risk management principles people for financial inclusion for meeting socio-
in line with all six core risks in banking economic requirements.
Priorities followed
in 2018
The Bank had the following plans and road-map for iv) Excellence in Delivering Customer Service
business success in 2018.
v) Effective Risk Management
i) Excellence in banking operations through
maintaining strong fundamentals of Capital vi) Effective IT Framework and System
Adequacy, Business Diversification and
vii) Efficient Internal Control and Regulatory
Exploring Non-Funded Business
Compliance System
ii) Prudent Asset Management
viii) Strong Human Resource Base
iii) Prudent Liability Management
ix) Going green in the future of banking
38
a bank with vision
Strategic
Priorities
SEBL will keep on growing as a leading Bank of Bangladesh, in spite of
existence of external challenges: first because we have a farsighted Board,
vibrant management and an enthusiastic & skilled group of employee
base that is committed to working together to provide our customers with
excellent service; second, because we are building on a solid foundation of
key strengths, including a strong capital base, and excellent risk and cost
management skills; third, because we are strategically diversifying our
business lines, products and locations; and finally, because we have a clear
focus on our strategy and where we need to direct our efforts. Our strategic
focus– is built around a few key priorities that will guide our actions as we
move forward over the next several years. They will serve as a roadmap to
help us navigate through the new landscape in which we are now operating.
Sustainable revenue growth, capital management, leadership, prudent risk &
appetite management, efficiency & expense management – will be the pillars
of our strategy in upcoming years. They will play a critical role in our success
and, given the ongoing market uncertainty, they deserve a prominent place
in our strategic framework.
Strategic priorities- Growth in areas of Integrated marketing development initiative by

strength creation of customer oriented culture
Remittance as a source of foreign currency
Sustainable revenue growth comes from our ability
to build relationships with our customers, and
creating niche markets. We do this by providing our Strategic priorities - Resilience and
customers with exceptional service. flexibility
Diversification and increasing loan clients and SEBL is committed to consolidate its solid capital
maintaining quality assets base to support the risks associated with our
Export expansion and diversification diversified businesses, while still providing investors
with superior returns. We actively manage our
Promoting Islamic banking through conventional
capital to support the execution of our business
branches strategies. Our goal is to achieve the lowest cost of
Emphasizing Small and Medium Enterprises capital by managing its mix and by building our base
financing. through earnings and selective capital issues.
Agricultural & Rural Credit through Micro expediting borrowers’ rating,
Financial Institutions
concentrating on lending portfolio having lower
Sustainable financing for Energy efficiency and
capital charge,
renewable energy projects
strengthening internal Capital adequacy
Arranging funds from overseas sources for Off-
assessment process (ICAP)
shore banking service and long term foreign
currency loans for corporate clients. Preemptive preparation for Basel –III compliance
39
Revising the capital allocation to business in line remains one of our strategic priorities. Our
with revised capital adequacy target ratios leadership strategy continues to build competitive
advantage through comprehensive development
At SEBL, we are known for our risk management programs and tools.
culture, characterized by a pragmatic approach and
rigorous processes. We make a point of knowing Hiring the best talents in different arenas of
our customers. But at the heart of our strength is Banking
experience and good judgment.
Fostering a culture of creativity, innovation and
For Credit Risk-our focus is to develop a strategic diversity with a view to sustainable business
business plan for appetite management and growth.
structured policy guideline and framework in Developing Human resource by rendering
order to manage default loans. training and motivation. so that they remain
Ensuring effective risk management system capable to lead new initiatives
specially prudent management of Asset Liability
risk, Foreign Exchange risk and Operational risk Creating Alignment between the leadership
development strategy and the business
Ensuring meticulous compliance of
strategy
disbursement procedures and monitoring and
follow-up of each loan by the Branch managers Key Performance indicator (KPI) based
to ensure in timely recovery of the same evaluation system
Strengthening recovery drive to bring down the
NPL at a minimum level Developing Human resource management
system to transform the organization
Ensuring efficient internal control and regulatory
compliance in all levels of banking operations. Efficiency and expense management-
Strategic priorities for Leading Expense management is a traditional strength at
Customer Experiences SEBL – and today, it’s more important than ever.
While revenue growth is ultimately decided by
Ensuring quality customer service at primary our customers & external factors, expenses are
distribution channel such as Branch and something we can control. Across SEBL, we are
development of alternative delivery channels to carefully monitoring our spending and looking for
improve customer experiences. ways to improve productivity by being innovative
and doing more with less :
Developing and upgrading customized asset,
Clear Cost saving strategies
liability and transaction products for Retail, SME
and Corporate clients. Business process reengineering (BPR) in
different Business and operational areas to
Mobilizing low cost sustainable deposits from
improve efficiency.
retail and institutional client base
Optimizing efficiency by Budgetary control
Increasing client base for financial inclusion and
wider market penetration. Paperless banking
Strategic priorities for Leadership/HR Implementing Green office Guide

capacity development
SEBL’s success depends on having the right leaders

to execute our strategy. For this reason, leadership
40
a bank with vision
Our Values, Core Values,

Core Strengths & Core Competencies
Our Values Core Values

Integrity
Our Values Serve as a compass for our action and
describe our direction. Respect
Fairness
Harmony
Team Spirit
Courtesy
Commitment
Service Excellence
Insight and Spirit
Enthusiasm for work
Business Ethics
Core Strengths
Professionally Strong Board of Directors
Strong Capital Base
Transparent and Quick Decision Making

Efficient Team of Performers Core Competencies
Satisfied Customers
Effective Internal Control Knowledge
Skilled Risk Management Experience and Expertise
Focus on Diversification Customer Orientation and Focus
Quality Customer Service Transparency
Unique Corporate Culture Determination
Clean divergence Between Board and Zeal for Improvement

Management Functions Pursuit of Discipline Growth Strategies
Strong Asset Base Reliability
41
Code of Conduct
and Ethics
Southeast Bank believes that its efforts to become a leading bank in the
private sector can only be achieved and sustained by creating effective
corporate governance, inculcating professionalism among its staff and strictly
adhering to rules and regulations. We believe that our aims and objectives
can only be realized fully and sustained over time by adherence to ethics that
cannot always be built into sets of rules and regulations. This belief in ethics
motivates the Bank in its dealings with those with whom it interacts.
A. WE ADHERE TO THE FOLLOWING PRINCIPLES B. WE BELIEVE IN THE FOLLOWING PRINCIPLES

IN DEALING WITH CUSTOMERS IN DEALING WITH SHAREHOLDERS
1. Adequate disclosure of corporate information
1. Follow strict ethical banking practices.
and operational results to help them take
2. Provide fair treatment to all customers, suitable investment decisions / options.
depositors and borrowers without any 2. Stable Dividend Policy.
discrimination. 3. Dialogue with them and implement their
3. Provide speedy customer service at a very suggestions for improvement.
competitive cost. 4. Equal treatment to all shareholders irrespective
of their individual size of shareholding.
4. Deal with customers in a transparent manner
5. Effective Risk Management.
and without any hidden cost.
6. Maintenance of fairness and accuracy of
5. Maintain strict secrecy of customer account. financial reporting and records.
6. Provide free financial advice to clients. 7. Restrictions on insider trading.
7. Deal quickly with complaints received from the C. WE ABIDE BY THE FOLLOWING PRINCIPLES
customers. We endeavour continuously to build IN DEALING WITH OUR REGULATORS
relationship of trust and understanding with 1. We are transparent in operations and
our customers. governance.
8. Give very competitive return to the depositors 2. We have a culture of timely compliance of
on their investment. regulatory requirements.
3. We take their suggestions with utmost
9. Listen to our customers and work for
importance and implement those for
improvement of customer service as per their improvement of our corporate governance
suggestion. standard.
10. Keep relations with customers in weal and woe. 4. We safeguard information and do not misuse it.
11. Keep promises that we make. D. WE CONFORM TO THE FOLLOWING

PRINCIPLES IN RESPECT OF OUR EMPLOYEES
12. Take competitive service charges and rates.
1. We do not discriminate on grounds of religion,
13. Discourage any sort of privilege or gift from sex or race at any stage. We recruit the best on
customer. the basis of merit under a rigorous recruitment
42
a bank with vision
policy without any biases or favoritism to 7. We support the women as a community and
anybody. contribute to women empowerment.
2. We pay competitive compensation package to 8. We are keen to move fast for green banking to
the really deserving employees. protect environment.
3. We care for our employees and create an F. WE DEVOTE TO THE FOLLOWING PRINCIPLES
environment to work together with dignity. IN RESPECT OF NATIONAL INTEREST
4. We have clearly defined duties and 1. We protect national interests.
responsibilities for each employee. No one is
responsible for unassigned jobs. 2. We refrain from prohibited business.
5. We have a zero tolerance for any act of 3. We promote causes for national development.
dishonesty. 4. We support nation-building efforts from our
6. We provide a congenial work environment. position.
7. We encourage freedom to our employees to COMMITMENTS TO CLIENTS

give opinion for both qualitative and quantitative
improvement of the Bank.
8. We take care of their health and safety. SEBL is a customer focused modern banking
institution in Bangladesh. We deliver unparalleled
9. Our employees avoid conflict of interest. financial services to Retail, Small and Medium
10. Our employees obey code of conduct. Scale Enterprises (SMEs), Corporates, Institutions,
Government and individual clients through branches
11. Professionalism, honesty, integrity and high
across the country. Our business initiatives center
moral and ethical standards are the creed of
around the emerging demands of the market. Our
our employees.
commitments to the clients are as follows:
E. WE UPHOLD THE UNDER-NOTED PRINCIPLES
IN RESPECT OF SOCIETY
1. Provide service with high degree of
1. We believe that the Bank gets business professionalism and use of modern technology.
sustenance from the community in which it
2. Create long-term relationship based on mutual
operates and, therefore, it remains responsive
trust.
to the community and the society in reciprocity.
3. Respond to customer needs with speed and
2. We discourage financing projects that are not
accuracy.
environment-friendly.
4. Share their values and beliefs.
3. We provide material support for protection of
environment. 5. Grow as our customers grow.
4. We give aid to the poor, helpless and natural 6. Provide products and services at a competitive
calamity hit people. price.
5. We support charitable ventures. 7. Ensure safety and security of customers’
valuables assets entrusted to us.
6. We give sponsorships to sports, culture,
education, health-care and community
development ventures.
43
CORPORATE
PROFILE
Southeast Bank Limited is a second-generation bank that was established
in 1995 with a vision to bring efficient and professional banking services to
the people and the business community of Bangladesh. It aims to contribute
significantly to the growth of the national economy.
The Bank’s glorious journey began as a Public Limited experienced and eminent banker of the country
Company on March 12, 1995 through receiving the with 36 years of experience in banking to his credit.
certificate of Commencement of Business from the
Registrar of Joint Stock Companies and Firms on that A team of efficient professionals manages the Bank.
date. Its Banking License from the Bangladesh Bank They create and generate an environment of trust
was received on March 23, 1995. The Authorized and discipline that encourages everybody in the
Capital of the Bank today is BDT 15,000 million. Its Bank to work together for achieving the objectives
Paid-Up Capital and Reserve reached BDT 38,860.11 of the Bank.
million as on December 31, 2018. The Bank had
2797 Staff of whom 247 were Executives, 2058 were It has a diverse array of products and services
tailored carefully to cater to the needs of all
Officers and 492 were other Staff as on December
segments of customers. Our operational strategies
31, 2018.
are structured to address the special and often
complex needs of the customers. In the growth
Southeast Bank was established by leading
graph, the Bank has generated profit of BDT
business personalities and eminent industrialists 2,473.21 million after provision and income tax in
of the country with stakes in various segments of the year 2018. The curve keeps soaring upward
the national economy. The incumbent Chairman of everyday making it one of the leading and most
the Bank is Mr. Alamgir Kabir, FCA, a professional successful banking institutions in Bangladesh with
Chartered Accountant. The Bank’s Managing a total asset base of BDT 381,575.68 million as on
Director is Mr. M. Kamal Hossain, a creative, December 31, 2018.
44
a bank with vision
CORPORATE
PROFILE
Name of the Company : Southeast Bank Limited
Legal Form : Public Limited Company
Date of Inception : March 12, 1995
Company Registration No. : C-27985 (1831) / 95
Authorized Capital : BDT 15,000 million
Paid Up Capital : BDT 10,544.93 million
Registered Office : Eunoos Trade Centre
52-53, Dilkusha Commercial Area (Level #2,3,4,6,16 & 17)
Dhaka-1000, Bangladesh
Phone: (88-02) 9571115, 7160866, 9555466, 7173793
Fax: + 88-02-9550093
Telex: 632425 SBANK BJ
SWIFT: SEBDBDDH
E-mail: info@southeastbank.com.bd
Website: www.southeastbank.com.bd
Tax Payer Identification No. : 555495486932
VAT Registration No. : 19011025625
Chairman : Alamgir Kabir, FCA
Vice Chairperson : Duluma Ahmed
Chairman of the Audit Committee of the Board : Syed Sajedul Karim
Managing Director : M. Kamal Hossain
Chief Risk Officer : S. M. Mainuddin Chowdhury
CAMLCO : S. M. Mainuddin Chowdhury
Company Secretary : A.K.M. Nazmul Haider
Chief Financial Officer : Rasedul Islam, FCA (Acting)
Auditors : Pinaki & Company, Chartered Accountants
Tax Consultant : Akhter Abbas Khan & Co.
Credit Rating Agency : Credit Rating Information and Services Limited (CRISL)
Date of Opening of First Branch : May 25, 1995
Year of Initial Public Offer : 1999
Number of Employees : 2797
No. of Branches : 135
No. of Islamic Banking Branches : 05
No. of Ladies Branches : 02
No. of Off-Shore Banking Units : 02
No. of Foreign Correspondents : 644
Number of Outstanding Shares : 1,054,492,702
Listing Status (Shares) : Dhaka Stock Exchange (DSE), Symbol: SOUTHEASTB
Listing Date: April 12, 2000
Chitttagong Stock Exchange (CSE), Symbol: SOUTHEASTB
Listing Date: April 24, 2000
Market Price Information : DSE: BDT 15.60, Category A
(as on 31.12.2018) CSE: BDT 15.70, Category A
Investors’ Enquiry Investors' Relations Department
Eunoos Trade Centre 52-53, Dilkusha C/A (Level-2), Dhaka-1000
E-mail: irdsebl@southeastbank.com.bd
Phone:+88 02 9567271
Mobile: +88 01700706532
Name of the Bank’s Subsidiaries : Southeast Bank Capital Services Limited
Southeast Financial Services (UK) Limited
Southeast Financial Services (Australia) Pty Limited
Southeast Exchange Company (South Africa) Pty Limited
45
Group Corporate
Structure
Group Corporate
Head Office
Main Operations
Off-Shore Southeast
Conventional Islamic
Banking Units Bank Capital
Banking Banking
Services Ltd.
Southeast Bank Ltd., a Besides conventional To cater to the demand To carry on Merchant
2nd generation bank Banking, SEBL has 05 for off-shore banking Banking Operations
was incorporated (five) Islamic banking services, Southeast in a structured way,
as a Public Limited Branches based on Bank established two the Bank established
Company on March 12, Islamic Shariah where (02) Off-shore Banking ‘Southeast Bank
1995. After receiving Separate Accounting Units (OBUs), one in Capital Services
Banking License, its 1st system is being DEPZ and the other Limited’ as a
branch was opened maintained. is CEPZ. SEBL OBUs subsidiary company
on May 25, 1995. As a part of strategic provide a continuum in 2010.
Presently the Bank business plan, Islamic of financial services
has 135 Branches & Banking Service Desk such as FC Account for
173 ATMs across the (IBSD) has already Non-residents, Usance Date of
country. been expanded to Payable At Sight (UPAS) Incorporation:
A number of attractive every conventional Documentary Credit, September 23,2010
Deposits and Loan Branch. Time/ Term Loan in Paid up Capital:
products are available Foreign Currency, Full BDT.5,500 million
in its product basket. fledged export-import Ownership Interest
SEBL has launched Asset Size: services etc. from in Capital:
Retail Banking, Debit BDT 22,178.41 million 2009. BDT 5,489.93 million
Cards, Credit Cards, Deposits: In Percentage:
Mobile Banking BDT 20,001.88 million 99.82%
(Telecash), Ladies Asset Size:
Investment: Asset Size:
Branches and 24/7 Call BDT 12,791.63 million
BDT 15,684.71 million BDT 5,876.79 million
Centre to cater to the
Operating Profit: Loans & Advances:
needs of all segments
BDT 713.81 million BDT 11,744.27 million
of customers.
Operating Profit:
BDT 207.29 million
Asset Size:
BDT 340,529.27 million
Deposits:
Loans & Advances:
Operating Profit:
46
a bank with vision
Subsidiaries CSR Wing
Southeast Southeast
Southeast Exchange
Financial Financial Services Southeast Bank
Company (South
Services (UK) (Australia) Pty Foundation
Africa) Pty Limited
Limited Limited
To collect remittance To collect remittance To collect remittance To carry out Corporate

from Bangladeshi from Bangladeshi from Bangladeshi Social Responsibility
expatriates in United expatriates in Australia expatriates of (CSR) related activities
Kingdom for their for their beneficiaries South Africa for in an organized and
beneficiaries in in Bangladesh through their beneficiaries in sustainable manner,
Bangladesh through proper Banking Bangladesh through ‘Southeast Bank
proper Banking Channel, the Bank proper Banking Foundation’ was
Channel, the Bank established ‘Southeast Channel the Bank established by the
established ‘Southeast Financial Services established ‘Southeast Bank in-2002.
Financial Services (UK) (Australia) Pty Limited’ Exchange Company It also runs an English
Limited’ as a subsidiary as a subsidiary (South Africa)Pty Medium school named
company in 2011. company in 2013. Limited’ as a subsidiary Southeast Bank Green
company in 2014. School at Dhaka.
Date of Date of
Incorporation: Date of Total CSR related
Incorporation: Incorporation:
February 22, 2011 March 18, 2013 Expenditure under
December 15, 2014 Bank and SEB
Paid up Capital: Paid up Capital: Paid up Capital: Foundation in 2018:
BDT 33.53 million BDT 20.14 million BDT 42.84 million BDT208.53 million
Ownership Interest Ownership
in Capital: Ownership Interest
Interest in Capital: in Capital:
BDT 38.49 million BDT 25.06 million BDT 50.10 million
In Percentage: In Percentage:
100% In Percentage:
100% 100%
Asset Size: Asset Size:
BDT 26.89 million Asset Size:
BDT 1.38 million BDT 171.30 million
47
Organogram
of the Bank
Board of Directors
Executive Risk Management

Committee Committee
Managing Director
Board Secretariat
Head of Credit Chief Risk Officer
Corporate Banking Management Information

Division System Unit
SME and Agri. Credit Risk Management

Credit Division Division
Sustainable Risk Management Division

Finance Unit
Anti-Money Laundering
Division
Islamic Banking
Division
Information Technology
Security
Retail Business
Division
Special Asset
Management Division
Legal Affairs Division
Investors’ Relations Department
48
a bank with vision
Audit Committee Shariah

Supervisory Committee
Audit and Inspection Team
Central Compliance
Committee
Head of International Head of Business

Banking Information Technology
Division
International Division Credit Card Division

Human Resources
Division
Central Trade Services Alternative Delivery

Channel Division Logistic and
Department
General Services Division
Financial Control and

Remittance Division Call Center
Accounts Division
Internal Control and

Cash Management Telecash Compliance Division
Unit (Mobile Financial Services) (Monitoring &
Compliance Units)
Treasury Back Branches and General Treasury Division

Office Unit Banking Division
Training Institute
Investment Unit
(Capital Market)
Corporate Affairs and
Corporate Social
Asset Monitoring and Responsibility Division
Verification Division
Priority Banking
Division
49
Last 10 Years
Financial Indicators
PARTICULARS 2018 2017 2016 2015
Authorized Capital 15,000.00 15,000.00 15,000.00 15,000.00

Paid up Capital 10,544.93 9,169.50 9,169.50 9,169.50
Reserve Fund/ Others 28,315.19 24,595.63 24,886.78 19,340.03
Total Capital (Tier-I+Tier-II) 38,860.11 33,765.13 34,056.28 28,509.53
Deposit 298,334.79 269,828.08 229,973.43 210,431.09
Advance 267,671.63 234,316.72 191,865.59 168,878.46
Investment 65,609.55 62,911.04 61,731.63 58,829.27
Import Business 242,294.82 215,379.77 171,531.73 151,812.58
Export Business 190,402.80 167,562.98 146,606.09 126,423.89
Foreign Remittance 116,803.00 95,405.43 64,665.84 60,708.50
Guarantee Business including ILC 22,420.12 16,407.09 16,369.36 15,245.19
Total Income 33,739.81 27,305.90 25,617.57 26,260.72
Total Expenditure 23,956.82 18,243.60 17,114.35 18,226.45
Operating Profit 9,783.00 9,062.30 8,503.22 8,034.27
Net Profit after Tax and Provision 2,473.21 1,168.63 2,435.07 3,069.42
Fixed Assets 9,337.30 9,321.80 8,947.16 7,885.23
Total Assets 381,575.68 339,288.05 291,798.01 260,718.03
Earnings per Share (Tk.) 2.35 1.11 2.66 3.35

DividendCash (%) - 20% 15%
Bonus Shares 10% 15% -
Net asset value per share (NAV) 26.66 28.16 28.93 29.67
Return on Equity (ROE) 9.17% 4.46% 9.06% 11.86%
Return on Asset (ROA) 0.68% 0.37% 0.88% 1.23%
Non Performing Loan 5.87% 5.99% 4.89% 4.25%
Capital Adequacy Ratio 12.38% 10.84% 12.15% 11.52%
Number of Correspondent Banks 285 265 248 220

Number of Foreign Correspondents 644 825 807 811
Number of Shareholders 33,851 36,038 39,009 46,285
Number of Employees - Banking 2,305 2,194 2,089 1889
- Non Banking 492 510 527 487
Number of Branches 135 132 128 122
50
a bank with vision
BDT in million
2014 2013 2012 2011 2010 2009
15,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00

9,169.50 8,732.86 8,732.86 8,317.01 6,930.84 3,422.64
18,292.59 13,074.71 10,864.68 10,683.05 10,265.96 6,504.52
27,462.09 21,807.57 19,597.54 19,000.06 17,196.80 9,927.16
189,472.54 177,519.46 152,901.24 127,178.22 107,253.19 96,669.05
147,070.81 134,863.82 126,968.97 107,288.56 93,981.20 77,497.57
56,378.59 57,589.06 39,011.28 29,846.60 18,869.07 21,350.23
155,691.00 131,644.82 111,537.50 99,509.01 103,726.70 69,582.92
112,137.60 95,220.40 84,464.20 75,982.06 58,158.06 46,724.47
48,740.50 39,299.10 41,455.40 49,544.10 28,082.25 23,779.20
13,603.30 17,226.41 21,506.65 25,673.90 22,781.19 11,916.74
27,667.10 26,918.30 23,134.18 19,931.91 16,100.81 13,415.21
19,377.34 20,218.11 17,638.99 13,846.24 9,331.55 8,800.55
8,289.76 6,700.20 5,495.19 6,085.67 6,769.26 4,614.66
3,836.94 3,378.82 1,648.72 1,912.19 2,763.93 1,870.19
7,913.00 7,795.65 7,677.51 7,373.11 4,463.64 4,323.59
236,608.40 220,930.85 191,276.30 158,078.59 131,784.27 112,676.98
4.18 3.68 1.89 2.19 3.77 3.24

15% 16% 15% 15% 10% -
- 5% (20:1) - 5% (20:1) 20% (5:1) 35% (20:7)
26.77 23.92 22.66 23.30 24.73 33.10
16.51% 16.20% 8.42% 10.47% 19.41% 16.51%
1.67% 1.64% 0.95% 1.32% 2.26% 1.66%
3.64% 3.94% 4.47% 3.51% 4.26% 3.73%
12.41% 10.90% 10.87% 11.46% 11.25% 11.72%
211 211 183 161 152 146

791 778 691 654 645 589
58,169 65,413 64,060 68,039 66,898 22,152
1780 1704 1655 1526 1373 1254
441 414 355 322 240 148
113 103 94 84 76 56
51
Board of
Directors
From Left Standing From Left Seating
Sirat Monira Director Jusna Ara Kashem Director

Dr. Quazi Mesbahuddin Ahmed Independent Director Rehana Rahman Director
Md. Akikur Rahman Director Duluma Ahmed Vice Chairperson
M. Kamal Hossain Managing Director
52
a bank with vision
Zakir Ahmed Khan Advisor Alamgir Kabir, FCA Chairman

Syed Sajedul Karim Independent Director Azim Uddin Ahmed Director
M. A. Kashem Director
53
Brief Profile of
Board of Directors
Chairman
Alamgir Kabir, FCA
Vice Chairperson
Duluma Ahmed
Directors
M. A. Kashem
Azim Uddin Ahmed Independent Directors
Jusna Ara Kashem Syed Sajedul Karim
Md. Akikur Rahman Dr. Quazi Mesbahuddin Ahmed
Rehana Rahman
Sirat Monira
Managing Director
M. Kamal Hossain
Advisor
Zakir Ahmed Khan
54
a bank with vision
Executive Committee
Standing From Left
Md. Akikur Rahman Member Azim Uddin Ahmed Member

M. A. Kashem Member M. Kamal Hossain Member
Alamgir Kabir, FCA Chairman
55
Audit Committee
Syed Sajedul Karim Chairman Duluma Ahmed Member

Dr. Quazi Mesbahuddin Ahmed Member Jusna Ara Kashem Member
Rehana Rahman Member
56
a bank with vision
Risk Management
Committee
Standing From Left
M. A. Kashem Member Alamgir Kabir, FCA Chairman

Syed Sajedul Karim Member Azim Uddin Ahmed Member
57
Shariah Supervisory
Committee
From Left
Professor Moulana Mohammad Salah-Uddin Chairman (Not in the picture)

M. A. Kashem Member
Moulana Mohammad Kafiluddin Sarker Member
M. Kamaluddin Chowdhury Member
Alamgir Kabir, FCA Member
Azim Uddin Ahmed Member
M. Kamal Hossain Member
58
a bank with vision
Directors’
Profile
59
Alamgir Kabir, FCA

Chairman
M
r. Alamgir Kabir, FCA was born on December Coopers & Lybrand, Moores Rowland International
28, 1947. He did B.Com (Hons.) from the and Inbucon International Ltd., as Management
University of Dhaka and M.Com from Consultant from 1979 to 1993. He returned to
Punjab University. He is a professional Chartered Bangladesh in 1993 with assignment in Bangladesh
Accountant. He has wide experience and profound Securities and Exchange Commission as Member
knowledge in Auditing, Accounting, Banking, from 1993 to 1996 and also acted as the acting
Insurance and Financial Institutions both at home Chairman for a period. During his stay with BSEC, he
and abroad. substantially contributed to the development of the
Capital Market of Bangladesh. From 1996 onward,
Mr. Kabir has been Chairman of the Board of he has been involved in different capacities in
Directors of the Bank since September 29, 2004. formation and development of Bank, Non-Banking
He is also the Chairman of the Executive Committee Financial Institution, Insurance and Capital Market
and the Risk Management Committee of the Board related Institutions and others.
of Directors. He is the Chairman of its all subsidiary
companies. He is also the Director of Asia Insurance From 1999 to 2003, Mr. Kabir was the founder
Limited and Independent Director of National Life Advisor of Export Import Bank of Bangladesh Limited
Insurance Co. Limited. of which his brother Late Shahjahan Kabir was the
Founder Chairman. Both the brothers were involved
Mr. Kabir started his career in the year 1969 in the formation of EXIM Bank and contributed to its
with Rahman Rahman Huq and Co., Chartered rapid growth.
Accountants, Member Firm of KPMG and continued
with EWP Associates, Management Consultants, a Mr. Kabir belongs to a family whose members
sister concern of Rahman Rahman Huq and Co. and are involved with Banks, Insurances and Financial
stayed there until 1979. In 1972, he was in-charge of Institutions. He is member of a number of
Audit Team for the first statutory Audit of Accounts associations and also associated with many social
of Bangladesh Bank. He moved to Riyadh, Saudi organizations where he is working very silently
Arabia in 1979 with assignment in Saudi Accounting for the welfare of the people. Mr. Kabir is a widely
Bureau, Chartered Accountants, member firms of traveled person across the globe.
60
a bank with vision
Duluma Ahmed
Vice Chairperson
M
rs. Duluma Ahmed was born on July 7, 1947. Foods of Denmark for production of Dano brand
She hails from a very respectable Muslim Milk Products.
family. She is a Sponsor Director of the
Bank. Mrs. Duluma has been Vice Chairperson of the Mrs. Duluma Ahmed is involved with a number of
Board of Directors of the Bank since May 22, 2017. socio-cultural organizations of the country. She is
She is also the member of the Audit Committee of the patron of Benuka Lalitakala Academy, Dhaka, a
the Board of Directors of the Bank. She is associated famous cultural organization. She is a member of
with business activities. She is the Chairperson of Inner Wheel Club and served as secretary and vice
Mutual Food Products Limited and Mutual Milk president of Inner Wheel Club of Dhaka North. She is
Products Limited as well as the Director of Mutual a member of Gulshan Ladies Club a renowned social
Trading Company Limited. She is the partner of ladies club of the country serving the humanity. As
Mutual Distribution and Silonia Agencies and Mutual a social worker, she is generously contributing to
Logistics Service Limited. Mrs. Duluma Ahmed is the the poor and the needy section of the society. She
Director of Arla Foods Bangladesh Limited, a joint travels almost all the countries of Asia and Europe,
venture between Mutual Milk Products and Arla USA and also Australia.
61
M. A. Kashem
Director
M
r. M.A. Kashem is the Founder Chairman contribution in Industrial sector in the year 1995. He
of Southeast Bank Limited. Currently, he is was awarded the “Highest Tax Prayer-2011” and also
a Sponsor Director of the Bank. He is also a in 2016-2017 by National Board of Revenue (NBR).
member of the Executive Committee and the Risk
Management Committee of the Board of Directors Mr. Kashem was the leader of 20 member FBCCI
of the Bank. He is the Chairman of Rose Corner (Pvt.) Trade delegation to Far Eastern Countries in the
Limited. year 1986. He was also the leader of 5 member
Govt. delegations to the U.K., the U.S.A. and Canada
Mr. Kashem is the founder life-member of North South sponsored by the UNDP in 1987 and leader of 12
University Foundation and the former Chairman of members Export Promotion Bureau (EPB) Govt. of
North South University Trust. He is a member of North Bangladesh delegations to EEC countries in 1985.
South University Trustee Board. As an industrialist he travelled almost all major
cities of the world many times on his own business,
Mr. Kashem is the former President of the Federation led FBCCI trade delegations and also North South
of Bangladesh Chamber of Commerce and Industry University.
(FBCCI), the apex body of all the business communities
of Bangladesh. He was the Chairman of Arbitration He has established a Trust named M. Kashem
Tribunal of FBCCI. He is the past Chairman of the Trust to foster education to the primary and mid-
Association of Private Universities of Bangladesh level students of Schools in his locality. Moreover, a
(APUB) which represented all Private Universities of general Hospital of 50 Beds in the name of “Tareque
the country. Mr. Kashem was a member of Board Memorial Hospital” has been established by the Trust
of Trustees of Hamdard Laboratories (WAQF) in his village home. It is a non-profit organization. The
Bangladesh, the leading producer of herbal medicines Trust also awarded stipends and scholarships to the
in the sub-continent for over 17 (seventeen) years. He meritorious students during the last couple of years.
was the President of SAHIC Trust (Society for Assistance
to Hearing impaired Children), the only voluntary As a philanthropist, Mr. Kashem set up a number of
organization rendering health care assistance of the Schools, Madrashsa, Masjid, Club etc. and erected
ear, nose and throat services to destitute and poor free dwelling houses for the poor and destitute
patients. He is the life member of SAHIC. people of his locality.
Mr. Kashem is an eminent industrialist, renowned Mr. Kashem is a member of the Kurmitola Golf
patron of education, distinguished philanthropist Club, Rotary Club of Dhaka West, Gulshan Club
and an active social worker. He was the winner of Limited, Bangladesh Diabetic Association, Dhaka,
“President Export Trophy Award” for the year 1982- Bangladesh Red Crescent Society, National Shooting
83 and 1983-84 for excellent export performance. Mr. Club, Shishu Hospital, Chittagong and Baridhara
Kashem also got “C.R. Das Gold” Medal for excellent Cosmopolitan Club Limited.
62
a bank with vision
Azim Uddin Ahmed

Director
M
r. Azim Uddin Ahmed was born on June 30, Mr. Azim is associated with a number of trade
1940. He is a graduate from the University bodies and associations devoted to social work.
of Dhaka. He is Sponsor Director and former He was the past President of Rotary Club of Dhaka
Chairman of Southeast Bank Limited. He pushed North and Area Governor of Rotary District. He
the Bank forward in its growth and development. was the past President of Gulshan Club Limited.
He is also a member of the Executive Committee He was the President of Baridhara Society for long
and the Risk Management Committee of the Board time. He served in different capacities in Dhaka
of Directors of the Bank. Chamber of Commerce and Industry (DCCI),
Federation of Bangladesh Chamber of Commerce
Mr. Azim Uddin Ahmed is a well-known business and Industry (FBCCI) and Bangladesh Indenting
personality of the country. He is the Chairman of Agents Association. He is the current President of
Mutual Group, Mutual Trading Company Limited, Bangladesh Consumer Products Manufacturers
AD Holdings Limited and Chairman of the Arla Association. He represented Bangladesh as
Foods Bangladesh Limited, a joint venture between a leader and member of a number of Trade
Mutual Milk Products Limited and Arla Foods of Delegation to Europe, USA, Asian countries
Denmark for production of Dano Brand Milk Product including China and many others on Govt. and
in Bangladesh. He is also the partner of Mutual private trade delegations. He is a widely travelled
Agro Complex, Mutual Departmental Store and person across the globe.
Mutual Distribution and Silonia Agencies, Managing
Director of Mutual Food Products Limited, the only Mr. Azim came from the educationalist and
manufacturers of Horlics in Bangladesh. He is also philanthropic family and engaged him in
managing partner of Mutual Logistics Service. philanthropic activities. He is the Founder of
Azim Uddun Ahmed Islamia Madrasha, Duluma
Mr. Azim is a founder life member of Board of Azim High School, Fatema Farzana Kindergarten
Trustees of North South University. He was the and Azim Uddin Ahmed Forkania Madrasha in
chairman of the North South University Board of his village. He has contributed for a number of
Trustees for several times and founder life member educational and socio-cultural organizations all out
of North South University Foundation. of the country.
63
Jusna Ara Kashem

Director
M
rs. Jusna Ara Kashem was born in a very Society. She is the founder of a beautiful Mosque at
respectable Muslim family of Rajshahi. She Kashem Complex named “Jusna Ara Kashem Jame
is a Sponsor Director of the Bank and a Masjid” in Darogarhat, Feni. She is a widely travelled
member of the Audit Committee of the Board of lady and visited many countries of the world.
Directors of the Bank. She is the Director of Rose
Corner (Pvt.) Limited. Mrs. Kashem is very much amiable in nature and a
good social worker and she contributes to the poor
Mrs. Jusna Ara Kashem is associated with many and the needy people of the country.
humanitarian and philanthropic organizations and
is the Vice Chairperson of M. Kashem Trust. This
Trust has set up a-50 bed Hospital namely “Tareque
Memorial Hospital” at Feni.
She is an enthusiastic member of Gulshan Ladies

Club, Inner Wheel Club of Dhaka West and Gulshan
64
a bank with vision
Md. Akikur Rahman

Director
M
r. Md. Akikur Rahman was born on February
15, 1945. He is a Sponsor Director of the
Bank. He is also a member of the Executive
Committee of the Board of Directors of the Bank.
He was the former Vice Chairman of International
Medical College and Hospital, Gusholia, Tongi,
Gazipur, Bangladesh. Mr. Akikur Rahman is
associated with Southeast Bank Limited since its
inception in 1995 as a Sponsor.
65
Rehana Rahman
Director
B
orn on June 06, 1948, Mrs. Rehana Rahman social organizations, such as Women Entrepreneur
comes from a respectable Muslim family of Association of Bangladesh (WEAB) and United Nation
Khulna. After completing her graduation from Association of Bangladesh (UNAB). She served as
Eden Girls College, Dhaka, Mrs. Rahman now plays a the President of WEAB for the year 2008-2009 and
significant role in our country’s socio-economic and also received ‘Begum Rokeya Shining Personality
educational sector. Throwing a spec of light at her Award’ during that time, for her persevering effort in
accomplishments, Mrs. Rahman is the Managing women empowerment and economic growth.
Director of Bengal Tradeways Limited, Director of
CHB Building Technologies Limited, Director to Last but not least, Mrs. Rehana Rahman is a former
the Board of Bangladesh Chamber of Industries, a President of North South University, which is one
Member of the Board of Trustees of North South of the leading Universities in our country, nurturing
University Foundation, Director of Southeast students with talent and intelligence for our brighter
Bank Limited and also a member of the Audit future.
Committee of the Board of Directors of the Bank.
Mrs. Rehana Rahman is also an active member of
66
a bank with vision
Sirat Monira
Director
M
rs. Sirat Monira was born on September 15,
1949. She obtained Master of Social Science
(MSS) Degree from the University of Dhaka.
She became a Director of Southeast Bank from ‘B’
Group i.e. Public Shareholders. She is a member
of Dhaka Ladies Club. She is a philanthropist. She
widely traveled many countries across the globe.
67
Syed Sajedul Karim

Director
M
r. Syed Sajedul Karim, a former Secretary to during December 2001 through April 2003. He
the Government of Bangladesh has recently briefly worked as an External Auditor of UNDP
joined the Southeast Bank Limited as an Headquarters in New York and UN agencies based
Independent Director. Mr. Karim did his Honours in Ethiopia and Cameroon. He was an Audit Adviser
and Masters from Dhaka University and Diplomas to the Government of Seychelles for over two years.
on Petroleum Accounting from North Texas and He once led a team to overview the operations
Southern Methodist Universities in Dallas, USA. of UK based branches of nationalized Banks of
Bangladesh.
As an officer of the BCS (Audit & Accounts) cadre,
After retirement from Government service, Mr.
Mr. Karim served the Government of Bangladesh Karim served over 10 years as a Senior National
in different capacities both at home and abroad. Consultant in a number of administrative and
During his long service career, he was the Chairman financial reform projects funded by bilateral and
and Chief Executive Officer of Petrobangla multilateral development partners of Bangladesh.
68
a bank with vision
Dr. Quazi Mesbahuddin Ahmed

Director
D
r. Quazi Mesbahuddin Ahmed was born on January 18, Dr. Ahmed was a visiting fellow at the University of Western
1948. He did B.A. (Hons.) and M.A. in Economics from Australia during 1994. He worked as an independent expert
the University of Dhaka in 1967 and 1968 respectively. of the SAARC Secretariat in 2007 and earnestly contributed to
He obtained M.S. degree in Economics in 1979 from the James SAARC’s endeavorin bringing out the Poverty Profile of South
Cook University of North Queensland, Australia. He earned Asia. He was a member of the 7th Bangladesh Pay Commission
another Masters leading to Ph.D. degree in Economics in 1989 constituted in 2008. Dr. Ahmed worked as a member of
from the University of Illinois at Urbana-Champaign, USA. the Advisory Committee at the Ministry of Planning for the
Perspective Plan of Bangladesh, 2010- 2021.He was consultant
He was appointed an Independent Director of the Bank in the to producing country report for Bangladesh in 1995 for ADB’s
21st Annual general Meeting held on April 11, 2016. He is also Asian Economic Outlook and acted as an expert for writing
a member of the Audit Committee of the Board of Directors of the Bangladesh report for South Asian Human Development
the Bank. Report, 2007.
Dr. Ahmed started his career at the Research Department of Dr. Ahmed shouldered the responsibility of producing the
the erstwhile State Bank of Pakistan in February, 1969 and later Bangladesh country- reports for the Paris Consortium meetings
joined the Planning Department of erstwhile East Pakistan in for various years starting from 1981 and attended all of these
1971. meetings since then when present in the country. Dr. Ahmed
had travelled beginning early 1970s numerous countries around
Dr. Quazi Mesbahuddin Ahmed worked as Managing Director the globe and participated in several ministerial and some Prime
of Palli Karma-Sahayak Foundation (PKSF) for a period of Ministerial delegations abroad.
more than five-years during January, 2008 through March,
2013. Before joining PKSF, Dr. Ahmed was Member, General Dr. Quazi Mesbahuddin Ahmed specialises in poverty discourse,
Economics Division of the Bangladesh Planning Commission macroeconomic analyses, monetary economics, economics of
during September 2003 through January 2007. In that capacity, foreign aid, theories and working of microfinance, etc.He has
he was in overall charge of preparing the first Poverty Reduction had some selective publications in national and international
Strategy Paper (PRSP) of Bangladesh. Dr. Ahmed was also journals.
simultaneously in-charge of the Industry and Energy Division of
the Planning Commission. Dr. Ahmed took classes for senior civil servants at PATC,
National Defense college, Planning Academy, BARD, Bangladesh
Before being Member, Planning Commission, Dr. Ahmed was Management Academy, and other institutions during
Additional Secretary, Economic Relations Division (ERD), Ministry 1980s,1990s and 2000s.
of Finance in 2003.He was Economic Minister at the Bangladesh
Embassy in Washington DC for six years during 1997-2002 and Dr. Ahmed has been a senior adjunct faculty in Economics at
acted as charge d’ Affaires of the Embassy in absence of HE the the East West University since Fall, 2013 and has had a record of
Ambassador. obtaining outstanding evaluations by students ever since.
69
M. Kamal Hossain
Managing Director
M
r. M. Kamal Hossain was born on January During his 36 years long banking journey, Mr.
01, 1958. Mr. Hossain had an exemplary Hossain gained extensive banking experience and
academic background. He did his MSS developed wide range of expertise in almost all
with distinction in Public Administration from areas of commercial banking comprising Import,
the University of Chittagong in 1982. He started Export, Credit, General Banking, Human Resources,
his banking career as a Probationary Officer Accounts etc. Under his visionary leadership, SEBL is
with National Bank Limited in 1983. He spent 18 expected to evolve as a leading commercial bank of
(eighteen) years in National Bank Limited holding Bangladesh with exemplary business and financial
important positions in different branches and Head outcomes.
Office.
Mr. Hossain is an alumnus of the Public
Mr. M. Kamal Hossain has been serving Southeast Administration Department of the University of
Bank Limited (SEBL) as Managing Director since Chittagong. He attended numerous seminars,
the 20th June 2017. He is also a member of the workshops and training programs at home and
Executive Committee of the Board of Directors abroad. He extensively visited the United States of
of the Bank. He joined SEBL in July 2003 as Vice America (USA), United Kingdom (UK), Switzerland,
President and prior to his current assignment, he Germany, France, Spain, Australia, Canada,
served as Additional Managing Director of the Bank. Myanmar, Turkey, Singapore, Malaysia, Thailand,
During his years of journey with SEBL, he held the China, Saudi Arabia, Oman, Qatar, India, etc. Mr.
position of Head of Branch (HoB) of a number of Hossain is married to Ms. Manoara Begum and
Bank’s leading branches including Principal Branch. blessed with two sons and one daughter.
70
a bank with vision
Zakir Ahmed Khan

Advisor
M
r. Zakir Ahmed Khan, Former Finance During his 47 years of service, Mr. Khan held various
Secretary to the Government of Bangladesh senior level positions in the Ministries of Finance,
joined Southeast Bank Limited as Advisor Commerce, Establishment, Energy, Civil Aviation
on 26 September, 2010. He carries with him vast and Tourism, Cabinet Division and Bangladesh Audit
experience and expertise gathered from home and and Accounts Department. He served as Finance
abroad. Secretary and Secretary, Internal Resources Division
and Chairman, National Board of Revenue for five
Mr. Khan did BA (Hons) and Masters in Economics years. He also briefly worked for a number of UN
from the University of Dhaka in 1968. He had Agencies. Prior to his retirement in early 2009, he
graduate study in Development Economics and served as Alternate Executive Director of the World
Development Administration as a Hubert Humphrey Bank for three and a half years.
North-South Fellow at the Colorado State University,
USA. He also did Master of Business Administration He contributed a number of articles on public
from Vrijie Universiteit, Brussels, Belgium. policy and public sector financial management to
a number of national and international journals.
Before joining Government Service in 1970, he He also made several key note presentations on
briefly worked as a Research Associate in the Bureau public sector reforms and financial management in
of Economic Research and Institute of Education seminars and workshops at home and abroad.
and Research and Lecturer in Economics, University
of Dhaka. He also worked as a part time Lecturer in
the Department of Finance, University of Dhaka.
71
Code of Conduct
for Directors
Southeast Bank Limited has adopted a Code of Conduct for its Directors. It
was approved by the Board of Directors in its 410th meeting held on December
24, 2012.
A few important items of the Code of Conduct are cited below:
The Directors are required The Directors shall not

to disclose their interest, entertain any employee’s
if any, in relation to the approach to them for
Bank. lobbying for his/her
promotion, posting, extra
The Directors shall not facility etc.
Arrangement take part in any discussion Employee’s
or vote on any contract/ No Director shall pursue/
arrangement on behalf of insist/interfere for sanction
the company if he/she is in of any credit facility
any way interested in the favoring any client.
contract/arrangement.
Every Director shall

avoid conflict of his/her
personal interest with that
of the Bank.
The Directors shall not The Directors shall

borrow from the Bank fairly treat the Bank’s
without the approval of customers, suppliers,
the Board and Bangladesh depositors, shareholders
Bank. and employees.
Borrow Customers
The Directors must

comply with all applicable
laws, rules and regulations
and shall abstain from
insider trading of shares.
Applicable The Directors shall not

interfere in the day to day
affairs of the Bank.
72
a bank with vision
Policy on reviewing effectiveness

of the Board of Directors
Every year the Board of Directors of Southeast Bank Limited carries out an
evaluation of its own performance and effectiveness.
Reviewing the performance and
10 1
Review of role of the Board of Directors as
contribution of the Managing set out in the Article of Association and
Director and the Senior regulatory frame-work.
Management Team (SMT).
Making an assessment of
9
Directors’ contribution to
2
Periodical review of the
achievement of objectives discussions on business
by the Bank. proposals, governance and
general issues.
Review of objectives and Making an evaluation of

It is done
8 3
strategies of the Bank the status of compliance
periodically to ensure they with the Code of
remain consistent with the by way of: Conduct framed for
Bank’s priorities. Directors.
Providing sense of direction Apprising the Board of
7 4
to the management for Directors of new regulations
achievement of short term and emerging practices in the
objectives and long-term making rules for their
goals. information.
6
Discussing and analyzing its own
5
Review of the Bank’s strategies for
performance against benchmark and
every New Year
earlier achievements of result.
73
Directors’ Responsibility
Statement
Directors’ Responsibility Statement is outlined below in compliance with
Bangladesh Bank BRPD Circular No. 11 dated, 27 October 2013, as well as
BRPD Circular No. 14, dated 18 October, 2018:
Work-Planning and Strategic guidelines of Bangladesh Bank regarding Key Risk

Management Management. The Board imposes Code of Ethics for
every tier of employees and they follow it properly.
The Board determines Bank’s objectives. It chalks out It promotes healthy code of conduct in the Bank for
strategies and work-plans on annual basis. It specially developing a compliant banking operation.
engages itself in the affairs of making strategies
consistent with the determined objectives and Financial Management
goals and in the issues relating to structural change
and reformation for enhancement of institutional The annual budget and the statutory financial
efficiency and other relevant policy matters. It statements are finalized with the approval of
analyzes and monitors the implementation of its the Board. It reviews and monitors monthly
decisions on quarterly basis. The Board gives its position of Bank’s income, expenditure, liquidity,
analytical review as incorporated in the Annual non-performing asset, capital-base and capital
Report regarding the success or failure in achieving adequacy, maintenance of loan-loss provision and
the business and other targets as set out in its steps taken for recovery of default loans including
annual work-plan. It apprises the shareholders legal measures. The Board frames the policies and
of its opinions and recommendations on future procedures for Bank’s purchase and procurement
plans and strategies. It sets the Key Performance activities and accordingly approves the delegation of
Indicators (KPIs) for the CEO and Officers belonging power for making such expenditures. The maximum
to two tiers below the CEO and evaluates them from possible delegation of such power of expenditures
time to time. vests on the CEO and his subordinates. The decision
on matters relating to infrastructure development
Credit and Risk Management and purchase of land, building, vehicles etc. for the
purpose of Bank’s business are, however, adopted
The policies, strategies, procedures etc. in respect with the approval of the Board.
of appraisal of loan/investment proposal, sanction,
disbursement, recovery, rescheduling and write- Internal Control Management
off of loans are made with the Board’s approval
under the purview of the existing laws, rules and The Board remains vigilant on the internal control
regulations. The Board specifically delegates the system of the Bank in order to attain and maintain
power of sanction of loan/ investment and such satisfactory qualitative standard of its loan/
delegations are suitably made amongst the CEO investment portfolio. The Board establishes internal
and his subordinate executives as far as desirable control system in such a way that the internal
for efficient business operations. No Director audit process can be conducted independently by
interferes, directly or indirectly, in the process of the concerned department. It reviews the reports
loan approval. The Board frames policies for Risk submitted by its Committees especially regarding
Management and ensures their implementation. It compliance with recommendations made in Internal
monitors compliance at quarterly intervals through and External Audit Reports and the Bangladesh
reviews of the reports of the Risk Management Bank Inspection Reports as well as reports on
Team. The Board monitors the compliance of the management of risks.
74
a bank with vision
Human Resources Management and System (MIS). The Board gets these programs
Development incorporated in Bank’s annual work plan. The Board
reviews the work of the Asset-Liability Committee
Policies relating to recruitment, promotion, (ALCO) on a regular basis.
transfer, disciplinary action and punitive measures,
human resource development etc. and service Appointment of Chief Executive Officer
rules are framed with the approval of the Board. (CEO)
The Chairman or any Director in no way involves
himself or interferes into or exercises influence over One of the major responsibilities of the Board
any administrative affairs including recruitment, of Directors is to appoint an honest, efficient,
promotion, transfer and disciplinary measures as experienced and suitable CEO or Managing
conducted under the set service rules. No member Director. The appointment of the CEO is made with
of the Board of Directors is included in the selection the approval of the Bangladesh Bank.
committee for recruitment and promotion to
different levels. Recruitment, promotion, transfer Other Responsibilities of the Board
and punishment of the officers immediate two tiers
below the CEO, however, rest upon the Board. Such The Board follows and complies with all the
recruitment and promotion are done complying responsibilities assigned to it by Bangladesh Bank
with the service rules i.e., policies for recruitment from time to time.
and promotion.
On behalf of the Board of Directors,
The Board focuses its special attention on the
development of skills of Bank’s staff in different fields
of its business activities, the adoption of modern
electronic and information technologies and the Alamgir Kabir, FCA
introduction of effective Management Information Chairman
75
76
a bank with vision
Directors’
Report
Bismillahir Rahmanir Rahim
Dear Shareholders,
The Board of Directors of Southeast Bank Limited takes this opportunity to

welcome you all to the 24th Annual General Meeting of the Shareholders and
has immense pleasure to lay before you the 24th Annual Report of the Bank
together with the Auditors’ Report for the year ended December, 2018.
1. World economic scenario in 2018 many countries have risen close to their potential,
and outlook for 2019 while full employment prevailed in most of the
major developed economies. As far as developing
Worlds’ aggregate economic growth remained economies are concerned, East and South Asian
steady at 3.1 percent in 2018 (Source: United Nations regions (including Bangladesh) remain on a
and The World Bank Group). Economic growth relatively strong growth trail, growing by 5.8 percent
picked up the pace in more than half the world’s 2018. While economic prospects at the global level
economies in 2018. Thanks to the expansionary have improved over the past year, several large
fiscal policy in USA, developed economies expanded developing countries have seen per capita income
at a steady pace of 2.2 percent and growth rates in decline.
Annual percentage change 2016 2017 2018*

World 2.5 3.1 3.1
Developed economies 1.7 2.2 2.2
United States of America 1.6 2.2 2.8
Japan 1.0 1.7 1.0
European Union 2.0 2.4 2.0
EU-15 1.9 2.2 1.8
EU-13 3.2 4.6 4.2
Euro area 1.9 2.4 2.0
Other developed countries 1.9 2.4 2.5
Economies in transition 0.4 2.0 2.1
South-Eastern Europe 3.1 1.9 3.9
Commonwealth of Independent States and Georgla 0.3 2.0 2.1
Russian Federation -0.1 1.5 1.5
Developing economies 3.9 4.5 4.4
Source : World Econmic Situations & Prospects-2019 United Nation
77
Many commodity- exporting countries, notably Major Commodity Prices

fuel exporters, are continuing a gradual recovery, A. Commodity Prices indices
Index, 2015 = 100
although they remain exposed to volatile prices.
The growth in global industrial production and

merchandise trade volumes has been contracting
since the beginning of 2018. Despite this steady
growth in Global economy, vulnerabilities and
weaknesses in many developing economies and the
Jan-00
Apr-01
Jul-02
Oct-03
Jan-05
Apr-06
Jul-07
Oct-08
Jan-10
Apr-11
Jul-12
Oct-13
Jan-15
Apr-016
Jul-17
unequal seed of economic advancement across the
world is also observed. All Groups Fuels
Minerals, ores and metals All Food
Source: UNCTAD
Over the course of 2018, there was a significant
rise in trade tensions among the world’s largest
economies, with a steep rise in the number of B. Oil Prices and US crude inventories
disputes raised under the dispute settlement 140
US Dorllars per barrel Miliion barrels
700
mechanism of the World Trade Organization. Moves 650
120
by the United States to increase import tariffs 600
100
have sparked retaliations and counter-retaliations. 550
Global trade growth has lost momentum, although 80
500
stimulus measures and direct subsidies have so far 60
450
offset much of the direct negative impacts on China 40 400
and in the United States. 20 350
0 300
2014 2015 2016 2017 2018
Rising policy uncertainties and deepening country- US Dorllars per barrel WTI Brent
specific vulnerabilities generated heightened Source: Energy Information Administration
financial market volatility in 2018. Investor sentiments
were affected by escalating trade tensions, high The anticipated failure of policymakers in Europe
levels of debt, elevated geopolitical risks, oil market
to finalize legal and regulatory arrangements in
developments, and shifting expectations over
the monetary policy path of the United States. advance of the intended withdrawal of the United
Against this backdrop, global financial conditions Kingdom of Great Britain and Northern Ireland from
experienced some tightening during the year. the European Union subdued economies of Europe.
Global inflation remains moderate, but is on an Considerable uncertainty surrounds the monetary
upward trend in the majority of countries. Rising policy adjustment path in the developed economies,
oil prices contributed to additional inflationary
particularly the United States. Against a backdrop of
pressures in oil-importing countries over the course
fiscal expansion and an increase in import tariffs, a
of most of 2018, while currency depreciation against
the US dollar put upward pressure on imported strong rise in inflationary pressures impelled the
prices in many countries. United States Federal Reserve to raise interest rates
at a much faster pace , triggering a sharp tightening
Inflation in 2017 and 2018
of global liquidity conditions specially in Emerging
Economies.
2019 outlook
At the global level, growth is expected to moderate

slightly to 3 percent in 2019 (International Monitory
Fund). Slower growth in China and the United States
will be largely offset by continued recovery in some
developing regions and economies in transition that
earlier had suffered most by the commodity price
collapse. Among developed economies, US growth is
projected to decelerate notably as the effect of fiscal
Source : World Econmic Situations & Prospects-2019 United Nation
expansion decreases and the consequences of rising
78
a bank with vision
interest rates are increasingly being felt. While steady The major contributors behind the growth remained
growth is projected for the EU, the risks are tilted Industry Expansion and Inward Remittances from
to the downside, including potential fallout from abroad. Rapid growth in industrialization has
Brexit. Among developing and transition economies, resulted in further employment generation as well
the gradual moderation of growth in China is likely as eradication of poverty. Though the Banking
to continue, with policy support partly offsetting sector witnessed a difficult period during the year
the negative impact of trade tensions. Several large the economy grew at a rate of 7.86% in 2018,
commodity-exporting countries, such as Brazil, satisfactorily up from 7.28% growth in 2017.
Nigeria and the Russian Federation, are projected to
see a moderate pickup in growth in 2019. The per capita national income reached US$1,751
in 2018, up by US$141 a year earlier. During the
Primary signs indicate some slowdown in economic period broad agriculture sector registered a growth
thrust in many countries in 2019, in the middle of of 4.19 %, up by 1.22 % points compared to the
increasing trade disputes, risks of financial stress previous year due to the better performance of
and volatility, and an undercurrent of geopolitical most of its sectors and sub-sectors.
stresses. At the same time, several developed
economies are facing capacity constraints, which Inflation
may have an effect on growth in the short term.
The annual inflation rate in Bangladesh eased to
An extended episode of heightened tensions and 5.35 percent in December 2018 from 5.37 percent
spiral of additional tariffs among the world’s largest in the prior month. It is the lowest inflation rate since
economies poses considerable risk to the global February 2017, amid a slowdown in price rises of
trade outlook. The impact on the world economy both food (5.28% vs 5.29%) and non-food products
could be significant: a slowdown in investment, (5.45% vs 5.495), of which gross rent, fuel & lighting
higher consumer prices and a decline in business (2.64% vs 2.69%); miscellaneous goods & services
confidence. This would create severe disruptions (6.63% vs 6.83%) and recreation, entertainment,
to global value chains, particularly for exporters in education & cultural services (0.94% vs 1.25%). On
East Asian economies that are deeply embedded a monthly basis, consumer prices edged up 0.1
into the supply chains of trade between China and percent, following a 0.4 percent decrease in the
the United States. Slower growth in China and/or previous month.
the United States could also reduce demand for
commodities, affecting commodity-exporters from Bangladesh Inflation Rate:
Africa and Latin America.
6
Investors may become particularly cautious of 5.88
countries with significant domestic vulnerabilities, 5.8
5.72
such as high current account and fiscal deficits, 5.68
5.63
large external financing needs. Financial stress can 5.57 5.54 5.6
5.51 5.48
also spread between countries through banking 5.43 5.4
channels and other financial market linkages. 5.37 5.35 5.4
In addition, there is evidence of recent financial

market contagion through discrete shifts in investor Jan 2018 Apr 2018 Jul 2018 Oct 2018
5.2
confidence, placing emerging markets more broadly Source: Trading Economics.com | Bangladesh Bureau of Statistics
at risk.
2. State of the Bangladesh Economy in Government Expenditure

2018 and Economic Trends
The government expenditure as percentage of
Despite the doldrums of political uncertainties and GDP has been increasing gradually. Government
electoral activities Bangladesh economy has been expenditure increased to 13.60% and 14.27% of
able to maintain sustained economic growth in 2018. GDP in 2017 and 2018 respectively. The utilisation
79
of ADP allocation was 95% in 2018. Currently, the October from BDT 251.67 billion in September of
larger portion of ADP is financed from domestic 2018.
sources. A slight reduction has been occurred in Aid
280
flow in 2018 compared to the previous fiscal year.
265
251.67
253.2
Monetary policy 260
243.39
238.99
230.71
232.6
The monetary policy strategy for 2018 was targeted 240
to maintain an annual average inflation rate below
211.88
215.3
212.01
212.5
6.0%. To keep inflation within desired level the 220
201.62
Monetary Policy Statement (MPS) for 2018 set
targets for broad money and reserve money growth
200
at 13.3% and 12.0% respectively. Jan 2018 Apr 2018 Jul 2018 Oct 2018
Source: Trading Economics.com | Bangladesh Bank
Chart: Sectoral Growth of Private Sector Credit

Import
30%
Imports in Bangladesh increased to BDT 426.27

billion in October from BDT 397.41 billion in
20%
September of 2018. Imports in Bangladesh averaged
BDT 77.24 billion from 1976 until 2018, reaching an
10%
all time high of BDT 453.21 billion in May of 2018.
0%
453.21 460
Jun-16
Sep-16
Dec-16
Mar-17
Jun-17
Sep-17
Dec-17
Mar-18
426.27
418.59
440
404.12
397.41
420
Construction Consumer Finance Industry Transport
382.1
400
369.96
362.32
Source: Bangladesh Bank. https://www.bb.org.bd/monetaryactivity/mps/

361.46
380
mps_current.pdf
344.39
360
331.9
321.32
Capital Market Development 340
320
Jan 2018 Apr 2018 Jul 2018 Oct 2018
Although, in case of Dhaka Stock Exchange, the price Source: Trading Economics.com | Bangladesh Bank
index marginally decreased, market capitalisation

slightly increased from June 2017 to June 2018. On Trade Deficit
the other hand, both the price index and market
capitalisation of Chattogram Stock Exchange stirred Bangladesh recorded a trade deficit of BDT 173.10
in upward direction in 2018. For ensuring stable billion in October of 2018. Balance of Trade in
and smooth operation of the capital market and Bangladesh averaged BDT 27.40 billion from 1976
restoring the confidence of general investors several until 2018.
restructuring activities were carried out during this -100
period.
-109.4
-120
-117.1
-116.6
Export -140
-137.4
-142.8
-145.7
-149
-150.3
-160
Bangladesh is world’s second-biggest apparel
exporter after China. Garments including knit
-173.4
-173.1
-180
-179.6
wear and hosiery account for 80% of exports

-200
revenue; others include: jute goods, home textile,
-209.8
footwear and frozen shrimps and fish. Exports Jan 2018 Apr 2018 Jul 2018 Oct 2018
-220
from Bangladesh increased to BDT 253.20 billion in Source: Trading Economics.com | Bangladesh Bank
80
a bank with vision
Current Account Balance Bangladesh have also been remarkable as Moody’s,

S&P and Fitch rated the country as Stable.
During 2018, the current account of balance of
payment shows a deficit for high growth of imports. 2019 will be a significant year for our journey to
Import expenditures have boosted up massively became a Middle Income Country (MIC).
because of increasing private investment and
implementation of mega projects. However, the 3. An overview of the Bank.
increase in foreign direct investment, medium and
long term loans inflow of the capital and financial Southeast Bank Limited, a second generation
accounts contributed to ease the effect. As a result, private commercial bank, emerged in 1995 amid
foreign exchange reserve remained stable and liberalization of global economies. Currently, its
reached US$32.9 billion at the end of 2018, which Authorized Capital is BDT 15,000.00 million and its
allowed slight depreciation of the exchange rate total capital and reserve reached BDT 38,860.11
against US dollar. million as on December 31, 2018. Its vision is
to stand out as a premier banking institution in
Bangladesh and contribute significantly to the
1852 2000 national economy.
1503
907 1000 The Bank, in the meantime, successfully completed

539
twenty four years of banking operations registering
0 41
0 significant growth in performance indicators.
In 2018, the Bank earned an after tax profit of
-829 -1000
BDT 2,473.21 million. The deposit of the Bank
-1082 grew by 10.56 percent to BDT 298,334.79 million
-1756 -2000
and loans and advances by 14.23 percent to
BDT 267,671.63 million compared to those of 2017.
-2341
-1694 -3000
Jul 2015 Jan 2015 Jul 2016 Jan 2017 Jul 2017
-2989
Jan 2018 Jul 2018
Operational excellence coupled with qualitative
Source: Trading Economics.com | Bangladesh Bank improvements continued to be of paramount
importance to the Bank. At present, the Bank has
Overall Outlook 2019 135 branches and 02 Off-Shore Banking Units
across the country. Plans have been made to
Bangladesh's economy is expected to grow by 7.86 raise another 10 branches in 2019. Our journey
percent in 2019 Fiscal year (Bangladesh Bureau of towards greater operational success continues with
Statistics). The economic activities will remain buoyat increased energy and enthusiasm.
in 2019 aided by strong domestic demand, growth in
remittance inflow and pick up in export. Increasing As we face the stiff challenges ahead on the way to
Government expenditure and massive development further improving the profitability of the Bank, we
activities will also support domestic consumption rely on our skilled and experienced manpower. Our
and investment. The Service and Agricultural sector strengths are our close and cordial partnership
will also remain buoyant supported by political with customers, our firmly anchored presence in
stability and investment friendly climate. the country’s strategic places of commercial and
business importance and global reach through
The projection is based on factors like-a new our correspondent Banks for expansion of foreign
Government with strong commitment for better trade, foreign exchange and remittance business.
governance and accelerated development Our product-basket encompasses Real Time
has been formed, mega development Projects Online Branch Banking, Islamic Banking, Merchant
including infrastructure are being undertaken and Banking, Dual Currency Visa Platinum Credit Card,
implemented, new policies and legal, structural Visa Travel Card, ATMs, Education Loan Scheme,
reforms are taking place. Financial sector is Consumer Loan, Double Benefit Scheme, Millionaire
anticipated to be more vibrant than ever and the Deposit Scheme, SME Banking, Corporate Banking,
economy is on the road to further prosperity. Syndicate Loan, Monthly Savings Scheme, Fixed
Deposit, Monthly Income Scheme, Pension Saving
Long-term growth projections for real GDP growth Scheme, Multi-Millionaire Gold Deposit Scheme
made by several agencies shows that Bangladesh is (kept in abeyance for the time being), Mohor Saving
on top of the five fastest-growing economies in Asia. Scheme, Zakat Account, Cash Wakfh Account, Wage
As per projections, Bangladesh is the only country to Earner Pension Scheme, etc. in addition to our
maintain 7.0-plus growth rate annually up to 2030 traditional credit and foreign trade related products
and these even beyond. The global credit ratings of and services.
81
High quality customer service through the integration valuable directions and guidance of the Board of
of the latest and state of the art banking technology Directors of the Bank.
is our tool to achieve success. Customers are our
first priority. We are trying hard to provide a system Southeast Bank carries out its business activities
of one stop solutions for customers by providing keeping in mind its core values, norms of business,
a spectrum of services. Our employees have commitment to clients, society and the environment
mastered new technology, enhanced their product at large. Southeast Bank in all its activities and
knowledge and honed their skill to help customers operations tries to establish Green Banking practice
meet their financial goals. We want to be the best and attain a sustainable growth. The Bank in all
at helping customers become financially better off its endeavours wants to assure its shareholders a
by providing necessary advice, innovative leading- steady and competitive return on their investment
edge financial solutions, choice and convenience. in line with the best among peer institutions.
Irrespective of customers’ size and type, we aim at
delivering the best customer service by meeting 4. Capital and Reserves
their unique and different needs in a professional,
ethical, friendly and knowledgeable manner. The Authorized Capital of the Bank was
BDT 15,000.00 million and paid-up capital was
We are pledge-bound to turn Southeast Bank into BDT 10,544.93 million as of December 31, 2018.
a modern banking institution dynamic in actions, The Capital and Reserves (Tier-1 Capital and Tier-II
progressive in programs, honest in dealings, just in Capital) stood at BDT 38,860.11 million as compared
judgment, futuristic in attitude, fair in approaches to BDT 33,765.13 million in last year showing an
and devoted to high quality service to customers. increase of 15.09 percent.
Our charted plans are aimed at boosting modern
management, advanced technology, good SEBL has raised BDT 500 crore during the year 2018
profitability, sound financial strength and fair image by issuing subordinated bond to strengthen its Tier
of the Bank. We are firmly committed to transparent, II Capital base. The fund raised through issuing the
responsible and accountable corporate governance bonds are being utilized, among others, to maintain
with the participation of our strong and most capital to risk weighted Asset Ratio, to fund loans
capable team of professionals and under the and advances and to maintain liquidity ratios.
Capital and Reserve of the Bank as of December 31, 2018 were as follows:
BDT in million
Regulatory Capital Consolidated Solo
Tier-I capital
1) Common Equity Tier-I Capita(CET-1)
Fully Paid-up capital 10,544.93 10,544.93
Non- repayable share premium account
Statutory reserve 10,094.15 10,094.15
General reserve 247.65 247.65
Retained earnings 2,898.04 2,803.81
Dividend equalization Reserve
Minority interest in subsidiaries 10.07
Regulatory Adjustments
Goodwill and all other Intangible assets 124.42 124.42
2) Additional Tier-1 Capital (AT-1)
3) Total Tier-1 Capital (1+2) 23,670.42 23,566.12
Tier-2 Capital
General provision (unclassified loans SMA, off balance sheet) 4,522.60 4,522.60
Subordinated debt 10,200.00 10,200.00
Revaluation Reserves as on December31, 2015 (50% of Fixed Assets and Securities &
2,335.43 2,335.43
10% of Equities)
All other preference shares
Revaluation Reserves for Fixed Assets, Securities & Equity Securities(Phase in deductions
1,868.34 1,868.34
as per Basel-III Guidelines)
4) Total Tier-2 Capital 15,189.69 15,189.69
Revaluation Reserves for Fixed
1,868.34 1,868.34
Assets, Securities & Equity Securities (Phase in deductions as per Basel-III Guidelines)
Total eligible capital (3+4) 38,860.11 38,755.81
82
a bank with vision
5. Capital to Risk Weighted Assets 7. Shareholders’ Value Enhancement

Ratio (CRAR)
Shareholders’ interest is the most important matter
Southeast Bank has maintained Capital to Risk- for strategic planning of the Bank. Our paid-up
weighted Asset Ratio (CRAR) of 12.38 percent capital enhanced from BDT 300.00 million to BDT
(consolidated) as on December 31, 2018 as against 10,544.93 million, as of Dec’18 registering a growth
the minimum capital requirement of 11.875 percent of 3,415 percent through issuance of Bonus Shares
as set by Bangladesh Bank under Basel-III reporting and Rights Issue of Shares since our listing with
through BRPD Circular No.18 dated December 21, both Stock Exchanges. The Bank also achieved
2014 of Bangladesh Bank. considerable growth in its profit over the years
which facilitated maximization of shareholders’
6. Capital Market Scenario wealth. Steady rate of dividend declaration on
regular basis and maintaining Market Capitalization
The country’s stock market witnessed a bearish in terms of Paid-up Capital at a higher end indicates
trend throughout the year 2018 as both the market strong fundamentals of our Shares. Net profit after
index and turnover including foreign investment tax of the Bank is BDT 2,473.21 million in 2018 which
declined. As a pre-election year all the investors is 111.63 percent higher than BDT 1,168.63 million
followed a wait and see approach as a result of reported in 2017.
which turnover in the capital market remained very
sluggish. All indicators such as Market Capitalization, The Bank takes pride in having a constant positive
DSE General Price Index / CSE all Shares Price EPS and satisfactory NAV per share. It maintained a
Index and daily total turnover could not meet the steady growth in achieving EPS of BDT 2.35 and NAV
expectations of the general investors. Market per share of BDT 26.66 in 2018. The Bank achieved
capitalization at the end of the year 2018 went down a healthy Return On Equity (ROE) of 0.69 percent in
to BDT 3,872,952.837 million compared to BDT 2018. The Shareholders’ equity of the Bank rose by
4,228,945.456 million of the previous year in DSE BDT 28,116.66 million in 2018, which increased by
and in CSE BDT 3,157,178.759 million compared 8.88 percent from BDT 25,823.65 million of 2017.
to BDT 3,528,911.082 million of the previous years. Retained earnings of the Bank increased to BDT
It has declined by 8.42 percent in DSE and 10.53 2,898.04 million in 2018 registering a 6.69 percent
percent in CSE. growth from BDT 2,716.40 million in 2017.
At the end of year 2018, DSEX, the benchmark price 8. Deposits

index, closed at 5,385.64133 points compared
to 6,244.52234 points of the previous year and Southeast Bank has diversified its deposit base with
CASPI closed at 16,449.5095 points compared to numerous products with the mixture of high cost
19,268,0434 points of the previous year. The index and low cost deposit. Its deposit base had been
lost 858.88101 points or 13.76 percent in DSE and the foremost contributor for the strong investment
2,818.5339 points or 14.63 percent in CSE in the portfolio. SEBL maintained its liquidity profile
year. taking into account the regulatory requirements
and financial health of the company. As part of
Total 14 companies emerged in the capital market its strategic approach, SEBL thrived in low cost or
through Initial Public Offering (IPO) in the year 2018. no-cost deposits to gain edge in spread leading to
BDT 15, 721.00 million was raised from the capital overall profitability of the Bank. The bank through
market through IPOs and 1,572.10 million of shares its dynamic retail and corporate team, has managed
were floated in 2018. The number of BO Account a strong deposit base with appropriate cost
holders slightly increased to 2,778,797 in 2018 from management to gain competitive advantage in the
2,722,331 of 2017 which showed a marginal growth industry.
of 2.07 percent.
83
The amount of total deposits of the Bank as on Outstanding at

December 31, 2018 stood at BDT 298,334.79 the end of the
Year Growth Rate
year (BDT in
million as compared to BDT 269,828.08 million in
Million)
2017. Deposit-mix of the Bank as on December 31, 2018 267,671.63 14.23%
2018 was as follows:
2017 234,316.72 22.13%
2016 191,865.59 13.61%
Share 2015 168,878.46 14.83%
BDT in
Particulars in Total
Million 2014 147,070.81 9.05%
Deposits
Current and Other
a)
Deposits
40,472.07 13.56% 10. Guarantee Business
b) Savings Bank/Mudaraba
27,259.92 9.14% Guarantee Business (Open Ended/Close Ended)
Savings Bank Deposits
including diverse segments like Performance
c) Special Notice Deposits / Guarantee, Bid Bond, Advance Payment Guarantee,
Mudaraba Special Notice 29,844.08 10.00%
Deposits Retention Bond and Security Bond help SEBL
d) Fixed and Scheme comprise a strong base for Non-Funded Business.
Deposits or Term 196,264.18 65.79% At the end of 2018, total Guarantee Business of the
Deposits Bank amounted to BDT 22,420.12 million.
e) Bill Payable Accounts 4,494.55 1.51%
Total 298,334.79 100% Gurantee Business including ILC
(BDT in million)
9. Lending and Investment

2016 16,369
The year 2018 had been one of the most challenging

years for the banking industry. Despite being 2017 16,407
challenged in the current industry scenario, SEBL
had been able to utilize its core strengths to uphold
2018 22,420
a strong lending base for its clients. Pragmatic
assessment and good monitoring enabled the
bank to expand its investment to the new business 11. Investment Scenario
horizon. Consequently, the Bank invested through
various funded and non-funded loan products and The investment portfolio of SEBL was BDT 65,609.55
services to facilitate corporate clients, Small and million against BDT 62,911.04 million in the previous
Medium Enterprises (SMEs), rural business and year. Total investment portfolio of SEBL consists
marginal farmers for a healthy growth. Featured of diverse mix of several investment components
products and services of SEBL comprise of cash including Treasury Bills, Treasury Bonds, Prize Bonds
credit facilities, demand loans, term loans, agri and Shares of listed and un-listed Companies.
credit, micro credit, project finance, export credit,
structured/syndicated finance, letter of credit, 12. Asset Liability Committee (ALCO)
guarantees, discounting of bills, documentary
credits, credit card, consumer credit etc. As a result, Asset-Liability Committee (ALCO) is a senior level
total lending of the Bank stood at BDT 267,671.63 committee with the decision making capacity and
million as on 31st December, 2018 showing 14.23 responsibility to review, discuss and direct the
percent growth over previous year. Bank’s total financial policy, position, and risk exposures. Asset-
lending (consolidated) and its growth rate for the Liability Committee comprising of members of the
last five years are shown below: senior management team is the most important
decision making body from the Asset and Liability
Management point of view. As per Bangladesh
84
a bank with vision
Bank’s ALM guideline, Southeast Bank has a (II) Reliability, completeness and timeliness
fully functional Asset Liability Committee (ALCO) of financial and management information
consisting of senior level executives. needed for decision making within the
bank, shareholders, supervisors and other
The major roles and responsibilities of ALCO are as external parties; and
follows:
(III) That all banking business complies
Ensuring bank’s measurement and with applicable laws and regulations,
reporting systems accurately convey the supervisory requirements and the bank’s
degrees of liquidity and market risk. policies and procedures.
Monitoring the structure and composition The Board of SEBL reviews and approves the
of bank’s assets and liabilities and identifying overall business strategies and important policies
balance sheet management issues that of the bank as well as organizational structure. It
may lead to under-performance. also provides, guidance and oversight to senior
management of the bank. SEBL is consistently
Deciding on the major aspects of balance working towards achieving the required balance
sheet structure, such as maturity and between profitability and growth against the
currency mix of assets and liabilities, mix appropriate risk levels. The Board assesses
of wholesale versus retail funding, deposit management’s plans to grab business opportunities
mix, etc. commensurate with risk management priorities
and effectiveness of enterprise-wide framework.
Deciding on how to respond to significant, Within this context, SEBL’s organizational structure
actual and expected increases and has been built upon a framework that promotes
decreases in required funding. a transparent and efficient, enterprise-wide risk
management culture wherein the behaviour,
Reviewing maturity profile and mix of attitude and decisions reflect risk awareness and
assets and liabilities. mitigation across the bank. Great importance
is given to the risk governance structure which
Articulating interest rate views of the bank includes corporate value statements, codes of
and decide on balance sheet strategy. conduct and ethics, policies, procedures and risk
assessment. SEBL strives to strengthen and build
Reviewing contingency funding plan for the upon the existent risk values so as to minimize risk
Bank. exposure to insignificant levels.
13. Internal Control and Compliance The Board itself and its different committees
regularly review the potential risk resources of
The Board of Directors of Southeast Bank Limited the bank, set acceptable levels for these risks and
(SEBL) has established an appropriate culture to ensure that senior management takes the steps
facilitate an effective internal control process and necessary to identify, measure, monitor and control
monitor its effectiveness on an ongoing basis while these risks. The Board of SEBL through its Audit
each individual of the bank has to participate in the Committee also ensure that senior management is
process. The main objectives of the internal control monitoring the effectiveness of the internal control
process are to ensure: system in order to establish and maintain adequacy
and efficiency of SEBL’s system of internal controls.
(I) Efficiency and effectiveness of the bank in
using its assets and other resources and
protecting the bank from loss;
85
14. Performance of Selected Liability Products as on 31st December, 2018
Both Traditional and Islamic Banking
No. of Deposit Volume

Type of Accounts
Accounts BDT in Million
Current Dipost (CD) 103,334 12,591.70
Special Notice Depost (SND) 11,570 29,844.08
Savings Deposit 574,843 27,259.92
Fixed Deposit Receipt (FDR) 72,569 159,422.86
Traditional Banking
Type of Accounts
Monthly Income Scheme 639 843.96
Monthly Savings Scheme 44381 4,143.30
Educational Savings Schemes 9 0.76
Multimillionaire Gold Deposit Scheme 926 839.67
Super Double Benefit Scheme 85 41.01
Pension Savings Scheme 52458 8,843.40
Millionaire Deposit Scheme 4926 2,249.42
Double Benefit Scheme 10858 13,852.33
Wage Earner Pension Savings Scheme 1735 242.78
Islamic Banking
Type of Accounts
Mudaraba Pension Savings Scheme 4421 752.09
Mudaraba Wage Earner Pension Savings Scheme 201 48.62
Mudaraba Super Double Benefit Scheme 5 1.06
Mudaraba Hajj/Umra Scheme 4 0.80
Mudaraba Multimillionaire Gold Deposit Scheme 49 49.91
Mudaraba Term Deposit Ihsan 1 5.00
Mudaraba Monthly Savings Scheme 3224 324.43
Mudaraba Double Benefit Scheme 1049 864.04
Mudaraba Marriage Saving Scheme 8 0.05
Mudaraba Millionaire Deposit Scheme 293 120.86
Tijarah Mudaraba Muhor Savings Scheme 80 22.70
Hajj Sanchay Prokolpa 2 0.67
Mudaraba Monthly Income Scheme 60 88.60
Mudaraba Educational Savings Schemes 33 8.21
15. Budget and Budgetary Control evaluates its strengths and weaknesses and also
takes into account likely threats and opportunities
Southeast Bank regularly upgrades its budgetary for business operation that may arise in the near to
techniques and processes in line with industry medium term.
practice, dynamic business environment and
national economic goals. Annual Budget is Bank’s budgetary goals and processes are always
formulated as part of a medium term Five Year consistent with the national economic development
budgetary framework and is reviewed from time to policies and priorities. While formulating lending
time in the light of actual achievements of budgetary volumes and priorities, the Bank duly takes into
goals. In formulating budget, the Bank carefully account the importance of diversified lending to
86
a bank with vision
industrial and services sectors, geographic areas, million in the previous year. Investment income
SMEs and the agricultural sector. Annual Credit Policy consisted of interest earned on treasury bills and
of the Bank, an important guideline for allocation bonds, capital gain, revaluation gain, gain from sales
of projected volume of credit to different sectors of shares and dividend received from shares.
specifies lending principles of the Bank. The Bank also
carries out analysis of potentials of each and every Other Income
Branch while determining their budgetary goals.
In 2018, commission, exchange and brokerage
The budget incorporating mobilization of deposits, earnings increased to BDT 3,652.78 million from
lending to different sectors, both funded and non- BDT 3,462.93 million in 2017. Business and trade
funded, promotion of international trade and above related fee based activities contributed directly to
all controlling costs of doing business are monitored augment other income.
at the Headquarters monthly. The process of
budget formulation and execution is reviewed with Operating expenses
all the branches in Annual Business Policy Meeting
as well as in quarterly meetings held with all the Operating expenses of the Bank was BDT 4,870.74
branches. Reports on status of implementation of million in 2017 which reached BDT 5,178.92 million
budget are placed to the Board every month and in 2018.
guidelines and directions given by the Board are
communicated to all concerned for compliance. Provision against Loans and Advances
An appropriate monitoring mechanism has been
established centrally at Headquarters of the Bank In the year 2018, provision against loans and
to ensure budget implementation. advances was kept BDT 4,855.08 million as
compared to BDT 4,791.93 million in 2017.
16. Analysis of the Income and
Expenditure Statements 17. Asset Portfolio
A brief analysis on Bank’s income and expenditure Several diverse asset components including Cash
in 2018 is given below: and Cash Equivalents, Investments, Loans and
Advances, Fixed Assets and other assets comprise
Interest Income the asset portfolio of the Bank. The total amount of
asset portfolio amounted to BDT 381,575.68 million
The interest income of the bank for the year on 31st December, 2018.
2018 was BDT 23,977.84 million as compared to
BDT 17,400.55 million in the previous year. The The break-up of total assets is given below:
income generated from Loans and Advances
remained the main contributor. Particulars BDT in Million
Interest expenses Cash and Cash Equivalents 34,846.96

Investments 65,609.55
Total interest expenses in 2018 was BDT 18,777.90
Loans and Advances 267,671.63
million as against BDT 13,372.86 million in 2017
posting an increase of 40.42 percent. Fixed Assets 9,337.30
Other Assets 4,110.24
Net Interest Income
Total : 381,575.68
Net interest income of the Bank for the year 2018
stood at BDT 5,199.94 million against BDT 4,027.69 18. Adoption of IAS and IFRS
million in the previous year.
International Accounting Standards (IAS) and
Investment Income International Financial Reporting Standards (IFRS)
are universally accepted principles that regulate
In 2018, Bank’s income from investment was the financial reporting of the entities. The Institute
BDT 5,129.75 million as compared to BDT 5,570.65 of Chartered Accountants of Bangladesh (ICAB) has
87
accepted and adopted the stated principles to be Operating Income Mix (%)
the benchmark for financial reporting. Bangladesh
Securities and Exchange Commission (BSEC) and 25% 6%
Bangladesh Bank also mandated the implementation
of IAS and IFRS. Consequently, International
Accounting Standards (IAS)/Bangladesh Accounting 29%
Standards (BAS)/ International Financial Reporting
Standards (IFRS)/and Bangladesh Financial 40%
Reporting Standards (BFRS) as applicable in
Bangladesh, have been followed in the preparation
Net interest income Investment income
of the financial statements of the bank for the
year 2018 and any departure therefrom has been
adequately disclosed.
21. Return on Equity for the Last 5 years
19.Growth in Operating Profit for the
Last 5 years Return on Equity (RoE) of the Bank was 9.17 percent
in 2018 while it was 4.46 percent in the previous
The Bank has earned operating profit of BDT year. The Return on Equity of the Bank for the last
9,783.00 million in 2018 which comprises of five (5) years is given below:
net interest income, income from investment,
commission, exchange etc. Operating profit in 2017 Year Percentage (%) of RoE
was BDT 9,062.30 million. The operating profit of
the Bank for the last (5) five years is given below: 2018 9.17%
2017 4.46%
Year Operating Profit BDT in Million 2016 9.06%
2018 9,783.00
2015 11.86%
2017 9,062.30
2014 16.51%
2016 8,503.22
2015 8,034.27
22. Provision for Income Tax
2014 8,289.76
The provision for income tax including both
20.Operating Income for the Last 5 current and deferred tax of the Bank amounted to
years
BDT 2,195.45 million for the year 2018 while it was
BDT 3,013.45 million in the previous year.
The operating income of the Bank stood at
BDT 14,961.92 million at the end of 2018 while it
was BDT 13,933.04million in 2017. The operating 23. Profit before Tax and Provision
income of the Bank for the last five (5) years is given
below: The Bank earned profit of BDT 9,783.00 million
during the year before making any provision for
classified loans, off-balance sheet exposures,
Year Operating Income (BDT in Million) unclassified loans and advances and before taxes
etc. as against BDT 9,062.30 million in the year 2017.
2018 14,961.92
2017 13,933.04 24.Net Profit after Provision and
2016 12,852.45
Income Tax
2015 11,604.39 The Bank earned net profit of BDT 2,473.21 million
2014 11,617.19 during the year 2018 after making specific provision
for classified loans, general provision for unclassified
Despite being affected by certain industry loans and off-balance sheet exposure and after
challenges, our core banking activities have taxes etc. as compared to BDT 1,168.63 million in
produced satisfactory results in 2018. the year 2017.
88
a bank with vision
25. Net Profit for the Last 5 years Sl

Name of the Directors Position
No
Net Profit after tax and provision was BDT 2,473.21
million during the year 2018 which was BDT 1,168.63 01 Mr. Alamgir Kabir, FCA Chairman
million in the previous year. Net Profit for the last
Mr. Syed Sajedul Karim
five (5) years is given below: 02 Director
Independent Director
Mr. M Kamal Hossain
03 Director
Year Net Profit (BDT in Million) Nominee of Southeast Bank Limited
2018 2,473.21 Dr. Zaidi Sattar Director

04
Nominee of Southeast Bank Limited
2017 1,168.63
Mr. Md. Khursheed Alam
05 Director
2016 2,435.07 Nominee of Southeast Bank Foundation
Managing
2015 3,069.42 06 Air Cdre (Retd) Md Abu Bakar, FCA
Director
2014 3,836.94
SEBCSL’s products and services includes Portfolio
26. Statutory Reserve Management, Pre-IPO Placement, Underwriting
Management, Issue Management, Corporate
The total amount of statutory reserve stood at Advisory Services etc. The Company’s own portfolio
investment in the capital market also increased
BDT 924.15 million as on 31st December, 2018
remarkably in the year.
after 20% of the Profit Before Tax was transferred
to Statutory reserve for the year 2018.
Capital market of our country showed positive sign
from early 2018. Share price as well as turnover of
27. Southeast Bank Capital Services the capital market significantly increased. During
Limited the year 2018, Net Operating Profit of the company
amounted to BDT 24.08 million whereas the Profit
Southeast Bank Capital Services Limited (SEBCSL) after Tax stood at BDT 10.76 million. It is expected
is a subsidiary company of Southeast Bank Limited. that the company will earn more good return from
It was incorporated by the Registrar of Joint Stock its investment in 2019.
Companies and Firms under Company Act 1994 on
September 23, 2010 as a Public Limited Company. 28.Branches Network
The Authorized and the Paid up Capital of the
company are BDT 6,000.00 million and BDT 5,500.00 In today’s intense competition, most of the financial
million respectively. SEBCSL has been carrying out institutions are striving hard to display their best
operation as a full-fledged Merchant Bank since possible efforts to be competitive. As customers
2010. Southeast Bank Limited holds 99.82% of the are more fragmented, Banks are trying to enrich
total shares of the company. their services and network to serve the customers.
Southeast Bank, as a leading banking institution,
The company is managed by a professional team always gives highest priority to accelerate its branch
under the policy guidelines of the Board. The expansion programme to augment its customer
company performed as Issue Manager under Issue base and provide banking services to unbanked
management service to raise fund through IPO people. It is to be mentioned that business is the
during the year. We committed as underwriter in prime objective of any branch expansion strategy
the 4 (four) companies to the procedure of raising of a bank and definitely a new branch is aimed
at plugging geographical gaps in their network.
fund through IPO and Right Share issue during the
Southeast Bank invests in network expansion and
year 2018. Margin and non-margin account for
new technology adoption to achieve competitive
portfolio clients under portfolio management are
edge. Presently the bank is functioning with country-
being offered to the potential investors.
wide network of 135 branches and 2 Off-Shore
Banking Units covering all divisions of the country.
The Board of the company comprises of the Division-wise distribution of branches is given below:
following professionals:
89
Rural, SME/ Agri Islamic Banking Ladies’ Total

Division Urban Branches
Branches Branches Branches Branches
Dhaka 33 30 1 2 66
Chattogram 11 20 3 - 34
Sylhet 6 5 1 - 12
Khulna 4 4 - - 8
Rajshahi 8 1 - - 9
Barisal 1 - - - 1
Rangpur 2 - - - 2
Mymensingh 3 - - - 3
Total 68 60 5 2 135
To facilitate service to female entrepreneurs, the Basel III from January 01, 2015 in phases and fully
bank has set up two Ladies’ Branches in Dhaka city. by January 01, 2020. A Capital Conservation Buffer
The Bank is also offering Offshore Banking facilities (CCB) of 2.5% is to be kept at 0.625% each year from
through 2 (two) Offshore Banking Units (OBU) in the beginning of 2016 to 2019. This is in addition
Dhaka Export Processing Zone and Chattogram to existing Minimum Capital Requirement (MCR) of
Export Processing Zone.
10%. It means CRAR requirement will be 12.50%
from 2019.
Moreover, the Bank is providing “Shariah-Based
Islamic Banking Services” to the customers. Out of
135 (One hundred thirty five) Branches of the Bank, To increase and strengthen the capital base of
5 (Five) Branches are designated as Islamic Banking the Bank, Basel III has introduced the following
Branches located in Dhaka, Chattogram and Sylhet measures:
region. At present the number of Bank’s Authorized
Dealer (AD) Branches are 21 (twenty one). The Bank 1) Tier 1 capital is divided into two parts: Common
is also providing “Evening Banking Service” through Equity Tier 1 (CET1) and Additional Tier 1 (AT1)
27 (twenty seven) Branches to further augment its
service delivery at extended banking hours. 2) Tier 3 capital, part of Basel-II, has been
eliminated from Basel-III.
Year-wise Branches Network
3) The Bank has to maintain 3% leverage ratio
113 122 128 132 135
along with Liquidity Coverage Ratio (LCR) of
100% or more and Net Stable Funding Ratio
(NSFR) of more than 100%.
The Bank is well positioned in respect of capital and

risk management. It has commenced reporting of
CRAR, leverage and liquidity ratio from January 01,
2014 2015 2016 2017 2018
2015 following the new risk based capital adequacy
framework. The overall scenario as of December 31,
2018 under pillar-I is depicted below:
29. Implementation of Basel-III
Solo Consolidated Leverage
LCR NSFR
To strengthen banks against loss absorption and CRAR CRAR Ratio
to sustain the capacity for resilience, Bangladesh 12.47% 12.38% 5.16% 123.37% 115.68%
Bank has given directions to banks to implement
90
a bank with vision
The Bank has a Supervisory Review Process its own judgment on capital adequacy of the Bank
(SRP) team comprised of members of the senior after having dialogue with the Supervisory Review
management. SRP team of the Bank participated in Process (SRP) team of the Bank.
dialogue with the Supervisory Review & Evaluation
Process (SREP) team of Bangladesh Bank on the SEBL has a Supervisory Review Process (SRP) team at
issue of maintaining adequate capital against all the management level headed by the Managing Director.
risks associated with business. Moreover, Stress The team periodically reviews the risk assessment
Test is conducted through a prescribed format process and the requirement of adequate capital
given by Bangladesh Bank where impact on Capital against all plausible risks. The Bank uses Central
to Risk-weighted Asset Ratio (CRAR) is assessed Bank’s guidelines on “Revised Process Document
taking plausible shocks into account. Results of the for SRP-SREP Dialogue on ICAAP” to assess level of
Stress test are informed to the Board of Directors risks and capital requirement. It also reviews the
and Board Risk Management Committee (BRMC) on policy documents that would supplement the whole
quarterly basis. If needed, appropriate measures risk mitigating process under SRP. The ICAAP report
are taken on the basis of stress test result as per the of 2017 has already been sent to Bangladesh Bank.
recommendation of Board of Directors and Board As of December 2017, the Bank needed to keep
Risk Management Committee (BRMC). BDT 32,861.41 million to act as cushion against risks
under pillar-I and Pillar-II of Basel-III. However, the
Pillar-III of Basel III aims at promoting market Bank maintained BDT 33,679.04 million as capital
discipline through disclosing the reports. The including Tier-I and Tier-II.
reports on disclosure enable market participants
to assess and understand the key information 31. Corporate Governance
relating to the Bank’s regulatory capital and risk
exposures more effectively. The Bank has published One of the basic policies of the Bank is to strengthen
the disclosure incorporating all the changes in the its corporate governance status by establishing
revised guidelines. The Bank has already made responsible management system and strengthening
significant progress in implementing Basel-III and supervision. Efforts are also being geared up to
prepared itself to face the upcoming risks and improve the transparency and accountability of
challenges. the management. While putting efforts to achieve
corporate objectives, Southeast Bank gives top
30. Supervisory Review Process priority to establishing appropriate corporate
governance standard at all levels and in all units.
Supervisory Review Process (SRP), the second pillar A report on Corporate Governance of the Bank in
of Basel III framework, is designed to ensure not only 2018 is included in this Annual Report.
to have adequate capital to support all the material
risks in business which was not covered or adequately 32. Significant variances between
addressed in first pillar but also to encourage to quarterly and Annual Financial
use better risk management techniques. There Statements
are mainly two components of Pillar 2, the Internal
Capital Adequacy Assessment Process (ICAAP) and Annual performance of the Bank for the year 2018
the Supervisory Review Evaluation Process (SREP). slightly deviated from quarterly financial statements
The ICAAP is the Bank’s self-assessment process on due to increase of provisions for loans and advances
the overall adequacy of its capital strength in light of as well as provision for investment in share due to
the material risks identified. The SREP is undertaken fall of share price significantly in December 2018.
by the Central Bank in order to review and assess the
Bank's ICAAP and to assess the quality of the Bank's However, in spite of challenging circumstances,
risk management systems and internal controls. annual performance for the year 2018 improved as
Based on the assessment, the Central Bank makes compared to the performance of the year 2017. In
91
2018, EPS stood at Tk. 2.35 compared to Tk. 1.11 c) Appropriate accounting policies have been
in 2017. Loans and advances during the year 2018 consistently applied in preparation of the
increased by 14.23% and deposit increased by financial statements and that the accounting
10.56% from 2017 as well as Non Performing Loan estimates are based on reasonable and prudent
(NPL) of the bank was reduced from 5.99% to 5.87%. judgment.
Comparative presentation of quarterly financial d) Bangladesh Accounting Standards (BAS)/

statements is presented in the segment titled as Bangladesh Financial Reporting Standards
“Evaluation of the Quarterly Financials by the Audit (BFRS) as applicable in Bangladesh have been
followed except as outlined in Note No 3 in the
Committee and by the Board”.
financial statements.
33. Minority Interest

e) The system of internal control in the Bank
is sound in design and has been effectively
Share capital structure of Southeast Bank Limited
implemented and monitored.
as of 31st December 2018 comprises of Minority
Interest of institutional shareholders. The bank f) There are no doubts upon the Bank’s ability to
possesses a dignified culture of compliance continue as a going concern.
regarding all regulatory obligations related to
investors and shareholders. Any decision and 36. Declaration of Dividend
actions having material impact on the interest
of the shareholders, irrespective of the holding The Board of Directors in its 570th meeting held
pattern, are disclosed and redressed, in due form, on April 30, 2019 recommended 10 percent Stock
if required. Dividend for distribution amongst the shareholders
for the year-2018 subject to the approval in the 24th
34. Loans to Directors Annual General Meeting.
No loan excepting Credit Card limit was allowed to As per the requirement of Basel-III the regulatory
any Director of the Bank in the year 2018. capital requirement will increase from 11.875% to
12.50% in 2019. Therefore, to maintain a suitable
and adequate capital adequacy ratio to facilitate the
35.Declaration of the Compliance of Bank’s growth and to strengthen its core capital, the
BSEC Notification Board proposed 10% stock dividend instead of cash
dividend for the year 2018.
The following disclosures are made in compliance
37. Corporate Social Responsibilities
with certain provisions contained in the BSEC
Notifications dated June 03, 2018 and June 20, 2018.
Southeast Bank manages its business in a
responsible way and contributes to the society
a) The financial statements prepared by the and environment in which it operates. A report on
management present fairly its state of affairs, Corporate Social Responsibility of the Bank in 2018
the result of its operations, cash flows and is included in this Annual Report.
changes in equity.
38. Contribution to National Exchequer
b) All transactions have been recorded in the
accounting records and are reflected in the Southeast Bank contributed a sum of BDT 5,771.73
financial statements. (ISA 580 11b) Accounting million to national exchequer. The Bank’s
books have been properly maintained in the contributions to the National Exchequer for the last
Bank. five (5) years are depicted below:
92
a bank with vision
BDT in million the goals of the Bank. The Board convey its earnest
2017 5,771.73 gratitude to the Government of Bangladesh,
2016 5,665.45
Bangladesh Bank, National Board of Revenue (NBR),
Bangladesh Securities and Exchange Commission,
2015 4,416.10
The Registrar of Joint Stock Companies and
2014 5,278.45
Firms, The Dhaka Stock Exchange Limited and
2013 5,461.27
The Chittagong Stock Exchange Limited and
other concerned Authorities for their appreciable
Contribution to National Exchequer continuous support and co-operation to the Bank.
(BDT in million) The Board also expresses its appreciation to M/S.
Pinaki & Company, the auditors of the Bank, for their
5,461.27 5,278.45 4,416.10 5,665.45 5,771.73 efforts for timely completion of audit. The Board of
Directors also thanks both the print and electronic
media personnel for giving media coverage to
Bank’s different activities and events. Finally, the
Board thanks the respected shareholders and
assures them that it will continue to maximize the
2013 2014 2015 2016 2017 shareholders’ value through further strengthening
and development of the Bank in which they have
placed their trust and confidence.
39. Acknowledgement
Sincerely,
The Board expresses gratitude to the Almighty Allah
for the success of the Bank in 2018. The Board
On behalf of the Board of Directors.
extends thanks to the valued customers, patrons
and well-wishers for their continued support and co-
operation to the Bank. The Board also appreciates
the dedicated services, commitment, devotion and
hard work of the Management Team and all the Alamgir Kabir, FCA
employees in different levels of the Bank to achieve Chairman
93
Senior
Management Team
94
a bank with vision
95
Code of Conduct for

Senior Management Team
The code of conduct sets the principles for the employees of Southeast Bank
Limited (SEBL) to uphold and promote the interests of the Bank. The Senior
Management Team of the Bank conducts in accordance with high ethical
standards of honesty and integrity articulated in the Bank’s Core Values, Code
of Professional Ethics, and other applicable principles and rules.
As per regulatory requirement, Southeast Bank is blessed with an efficient Senior Management Team (SMT).
They, in a body, set Bank’s operational strategy and determine sense of directions.
Honesty and Integrity:

Senior Management acts with honesty, integrity and fairness
2 Conflict of Interest:
It does not engage in act that conflicts with the interests of the Bank.
Compliance with Laws, Rules and Regulations:

3 It complies with all applicable laws, rules and regulations.
Dealing with the Customers:

4 It treats the customers with respect and reciprocity.
Confidentiality of Information:
5 It maintains secrecy of the Bank and its customers.
Insider Trading:
6 No member of the Senior Management Team engages himself / herself in any
insider trading.
Gifts giving and Acceptance:

7 None of them accepts any gift from Bank’s Customers or ony of its business
associate.
Protection of Assets:
8 It protects Bank’s assets from being damaged or stolen.
Information Security:
9 It takes reasonable care to keep secure its information from unauthorized disclosure and
exchange.
Private Gain: Senior Management of the Bank exercises his/her power attributed to his/her
10 position for the benefit of the institution. No member of the Senior Management Team uses
his/her power attributed to his/her position for private gain.
Other Obligations:
11 It strives on a regular basis for the overall improvement in operations and image of the Bank.
96
a bank with vision
Committees of the
Management
Senior Management Team (SMT)
Sl. No. Name and Designation Position in SMT

1 M. Kamal Hossain, MD Chairman
2 S. M. Mainuddin Chowdhury, AMD Member
3 Syed Faisal Omar, SEVP Member
4 Md. Masum Uddin Khan, SEVP Member
5 Md. Shahjahan Sarker, EVP Member
6 Khandoker Zibanur Rahman, EVP Member
7 S. M. Mainul Kabir, EVP Member
8 Khandaker Zia Hassan, EVP Member
9 Md. Shahjahan, EVP Member
10 Lt Cdr Wares-Ul-Matin (Retd), SVP Member
11 Md. Jahangir Kabir, VP Member
12 Rasedul Islam, FCA, SAVP and CFO (Acting) Member
13 Monzur Ahmed, AVP Member Secretary
Supervisory Review Process (SRP) Team

Sl. No. Name and Designation Position in SRP Team
1 M. Kamal Hossain, MD Chair
2 S.M. Mainuddin Chowdhury, AMD Member
8 Kamrul Islam, VP Member
9 Rasedul Islam, FCA, SAVP Member
Executive Risk Management Committee (ERMC)

Sl. No. Name and Designation Position in ERMC
1 S.M. Mainuddin Chowdhury, AMD & CRO Chair
3 Khandaker Zia Hassan, EVP Member Secretary
5 Khandaker Khaled Hassan, SVP Member
97
Asset Liability Committee (ALCO)

Sl. No. Name and Designation Position in ALCO
2 S.M. Mainuddin Chowdhury, AMD Member
4 Md. Masum Uddin Khan, SEVP Member
8 Md. Jahangir Kabir, VP Member Secretary
9 Mohammad Abeduzzaman, SAVP Member
Central Compliance Committee (CCC)
Sl. No. Name and Designation Position in CCC

1 S.M. Mainuddin Chowdhury, AMD Chief Anti Money Laundering
Compliance Officer
3 Khorshed Alam Chowdhury,EVP Member
5 Khandaker Zia Hassan, EVP Deputy CAMLCO
8 Md. Abdus Sabur Khan, SVP Member
10 Md. Jakir Imtiaz, VP Member
11 Monzur Ahmed, AVP Member
Integrity Committee
Sl. No. Name and Designation Position in the Committee

1 S. M. Mainuddin Chowdhury, AMD Chair
2 Md. Shahjahan, EVP Focal Point
4 Md. Feroj Hoshen, VP Member
Credit Risk Management Committee (CRMC)
Sl. No. Name and Designation Position in CRMC

1 Chief Risk Officer Chair
2 Head of Credit Risk Management Member Secretary
3 Head of Corporate Banking Member
4 Head of Risk Management Member
5 Head of Special Asset Management Member
6 Head of Treasury Member
7 Head of Legal Affairs Member
98
a bank with vision
Tender Committee

2 Khorshed Alam Chowdhury, EVP Member
5 Kamrul Islam, VP Member
7 A. K. M. Moshiour Rahman, AVP Member Secretary
Procurement Committee
2 S. M. Mainuddin Chowdhury, AMD Member
6 Mohammad Tanveer Rahman, SAVP Member
7 A. K. M. Moshiour Rahman, AVP Member Secretary
IT Steering Committee
Sl. No. Functional Position of the Executives
1 Chief Information Technology Officer
2 Head of Internal Control and Compliance
3 Head of Corporate Banking
4 Head of Credit Risk Management
5 Head of Human Resources
6 Head of Legal Affairs
7 Head of Special Asset Management
8 Head of Risk Management
9 Head of Financial Control and Accounts
10 Head of Credit Card
11 Head of Alternative Delivery Channel
12 Head of Treasury
99
Taskforce for Monitoring and Recovery of Rescheduled and Restructured Loans

1 Md. Masum Uddin Khan, SEVP Chair
4 Mostofa Meer Khaled Omar, SVP Member
5 Joya Hussain, VP Member
6 Syed Abu Naser, VP Member
7 Mohammad Abeduzzaman, SAVP Member
8 Mohammad Kamruzzaman, SAVP Member
9 Md. Jahanagir Alam, SAVP Member Secretary
10 Head of Concerned Branch Member
Taskforce for Recovery of Classified Loans and Advances

1 Syed Faisal Omar, SEVP Head of Taskforce
2 Md. Masum Uddin Khan,SEVP Member
5 Kamrul Islam, VP Member Secretary
6 Md. Akhtaruzzaman, AVP Member
7 Head of Concerned Branch Member
Special Asset Management Committee (SAMC)

5 Kamrul Islam, VP Member Secretary
6 Syed Jonson Ali, EO Member
7 S. M. Moshiur Rahman, Senior Officer Member
100
a bank with vision
101
Corporate
Governance
Statement of Board of Directors on the Responsibility to Establish Appropriate
103
System of Internal Control
Statement of Board of Directors on adequacy of Internal Control System 104-105
Corporate Governance Report 106-123
Declaration by CEO and CFO on Financial Statements of the Bank to the Board 124
Compliance Report on BSEC’s Notification on Corporate Governance Code 125-134
Certificate on Compliance of Corporate Governance 135
Compliance with Bangladesh Bank’s Guidelines on Corporate Governance 136-146
Certificate of Senior Management Team (SMT) regarding the Effectiveness
147
of Internal Control Policy, Practice and Procedure
Report of the Audit Committee (Composition, Role, Meetings, Attendance etc.)
148-151
and Internal Control
Report of the Risk Management Committee 152-153
Evaluation of the Quarterly Financials by the Audit Committee and by the Board 154
a bank with vision
Statement of Board of Directors on the

Responsibility to Establish Appropriate
System of Internal Control
The responsibilities of the Board of Directors of With this end in view, the internal control system of
a bank in Bangladesh in respect to establishing Southeast Bank is principally designed to mitigate
appropriate system of internal control are regulated and effectively manage the risks the bank is exposed
by the Bank Company Act and the notification of to and to identify or highlight the deviation and
Bangladesh Securities and Exchange Commission. loophole of the established policies and rules.
The Board of Directors, under section 15(kha) and
15 (Ga) of the Bank Company Act 1991 (amended No system or framework can be foolproof. So the
up to 2018), are responsible for establishing and Board of Southeast Bank believes that the internal
executing policies of the Bank. It is also accountable control system of the bank can manage or mitigate
for risk management, internal control, internal audit the risk to an acceptable level/profile rather than
and compliance with requirements of the bank. As eliminate the risk of failure entirely to achieve
per Notification No. BSEC/CMRRCD/2006-158/207/ the policies, goals and objectives of the bank.
Admin/80 on Corporate Governance Code of The Board of Southeast Bank also believes that a
Bangladesh Securities and Exchange Commission strong system of internal control has significant
(BSEC) dated 3 June 2018, it will also establish an role over the reliability of financial information/
Audit Committee as a sub-committee of the Board reporting; effectiveness and efficiency of operations;
of Directors to assist the Board in ensuring that the compliance with applicable laws, regulations and
financial statements reflect true and fair view of the internal policies, safeguarding its assets; early
state of affairs of the company and in ensuring a detection of fraud-forgery and protecting the Bank
good monitoring system within the business. from the financial loss. So, internal control system
of Southeast Bank can only provide reasonable
and not absolute assurance in achieving the bank’s
Review of the effectiveness of the existing system of
policies, goals and objectives in generating potential
internal control of the bank is a fundamental aspect
returns to shareholders.
of Board’s responsibilities, but the management of
the bank is obligated to the Board for operating,
The Board has established a continuous process
monitoring and developing the system of internal
of identifying, evaluating, monitoring and managing
control so that they can assure the Board that the
risks faced by the bank. The follow-up and feedbacks
control systems are properly adhered to.
concerning possible deviations arising in the internal
controls are also established in the daily activities of
The Board of Directors of Southeast Bank carries out
the bank as a key part of the internal control work
its responsibilities extensively and has established an for the bank to ensure that errors are corrected
Audit Committee of the Board for sustaining sound, and that the control is further strengthened. All the
adequate and effective internal control systems processes and guidelines of the bank are reviewed
to safeguard the asset of the bank and interest of and updated from time to time to meet the needs
the shareholders. The Board of Southeast Bank is of changing business environment or regulatory
committed to operating the Bank within a strong guidelines.
system of internal control that enables business to
be transacted and risk taken without exposing itself
to unacceptable potential losses or reputational
damage. The Board of Southeast Bank is also aware
that the main objectives of the bank can be achieved Alamgir Kabir, FCA
depending on the success of risk management. Chairman
103
Statement of Board of Directors on

adequacy of Internal Control System
The Board of Directors of SEBL has established a services and businesses. In line with the guideline
process for identifying, evaluating and managing of Bangladesh Bank, the Board of Southeast Bank
significant risks faced by the bank. This process Limited has established an effective and integrated
also ensures the adequacy and effectiveness of the risk management framework consisting of Credit
system of internal controls so that the bank can risk, Foreign Exchange Risk, Asset and Liability/
respond to any change in the business environment Balance Sheet Risk, Money Laundering Risk, Internal
or regulatory guidelines. Control and Compliance Risk and Information and
Communication Technology Risk. Aligning with the
According to the instructions of Bangladesh Bank framework, Southeast Bank has taken 03(three) lines
(Central Bank), the Board of Directors has formed 03 of defense approach i) risk taking units ii) risk control
(three) different committees (Executive Committee, units and iii) internal audit to make sure that all risks
Audit Committee and Risk Management Committee) across all levels are managed in the best possible
from its members that are delegated with authorities way protecting the interests of all stakeholders. The
and responsibilities in line with the Bank’s strategies risk taking units are the Business Units responsible
and goals. The Executive Committee is primarily for identification and management of risks and
responsible for the execution and evaluation as well maintaining effective controls. The risk control units
as effective communication of key operational and are responsible for establishing and maintaining
management decisions throughout the Bank while risk management framework and methodologies
the Audit committee is a Board level committee while the Internal Audit is responsible for providing
tasked to ensure the formulation, adequacy and independent assurance on the adequacy of the
integrity of the system of internal control, oversight Bank’s risk management process and controls.
of the financial statements of the bank. The Risk
Management Committee is established to assist For an effective internal control, the Board of
the Board in the discharge of its risk management Southeast Bank has approved “Information and
functions as well as formulation and execution of Communication Technology Security Policy (ICT
the risk management strategies and policies which Security Policy)”, for protecting information from
serve as the foundation for the risk management a wide range of threats as well as safeguarding
activities of Southeast Bank. the confidentiality, integrity and availability of
information. Information security policy and the
Southeast Bank has implemented sound internal procedures provide assurance to the stakeholders
control system which is monitored effectively and that Southeast Bank’s business is able to leverage
regularly. Among the key processes, the Board has on IT to deliver optimal benefits. Control is exercised
established a written Management Control Policy over Information (IT) resources and IT related risks
(MCP) and Internal Control Policy (ICP) in order are well managed.
to review the adequacy and effectiveness of the
risk management framework and internal control The size, geographical presence and complexity
system. The MCP outlines the specific responsibilities of the business of Southeast Bank as well as the
of the various parties i.e. the Management, Internal dynamic operating environment require the Board
Control Team and the Audit Committee of the Board to constantly review and monitor the effectiveness
(ACB) pertaining to internal control of Southeast of its system of internal control. With this end in view
Bank Ltd. The ICP is designed to create awareness the Bank has established a sound and independent
among all the employees of SEBL with regard to the Internal Audit function mainly responsible for
internal control components and the basic control evaluating the adequacy and effectiveness of the
policy. Bank’s internal controls, ensuring compliance with
policies, procedures and regulatory requirements.
The risks to which banks are exposed are becoming Regular self-testing and high level risk assessment
more complex and diverse due to internationalization procedures e.g. Departmental Control Function
of the financial sector and diversification of financial Checklist, Quarterly Operation Report, Loan
104
a bank with vision
Documentation Checklist, SMT Certificate, Annual Based upon the results of reviews and audits
Summary Report, Annual Health Report, etc are conducted during the year, the Board through its
conducted followed by review and update to ensure Audit Committee evaluates whether the existing
an efficient and effective internal control. Internal Control System is “Effective and Acceptable”
and provides a reasonable assurance of effective
The Bank’s Internal Auditors are not assigned with operations covering financial and operational
any executive responsibilities in order to maintain controls and compliance with laws and regulations.
their autonomy and impartiality in fulfilling their
duties and responsibilities. The Internal Audit Nevertheless, the system of internal control
function reports are directly placed to the Audit monitoring mechanism is not flawless, room for
Committee of the Board (ACB) which is accountable improvement still exists, as it can only provide
for monitoring the overall performance of the reasonable and not absolute assurance against
function. Audit / Inspections are done aligned with material misstatement or loss and it is designed
a risk based Audit / Inspection plan on different to manage rather than eliminate the risk of failure
Branches/ Divisions / Units prepared at the start to achieve the organization’s policies, aims and
of each calendar year and approved by the Audit objectives.
committee of the Board. The ACB is reported
about all major observations emanating from the
internal audits, external audits and regulatory
authorities carried out in the calendar year as well
as recommendations for addressing any weakness
identified. The decisions of the ACB relating to audit Alamgir Kabir, FCA
findings and recommendations are complied with Chairman
by the Management accordingly.
105
Corporate
Governance Report
Conceptual Framework
Good corporate governance principles and practices are now embedded in all activities of the Bank. The
tenets for implementation of corporate governance practices are fairness, transparency and accountability,
regulatory compliance, integrity in performances, effective internal control system and commitment to the
society and the environment. Our ultimate goal in respect of corporate governance is to come out as a good
corporate entity and respond to calls of responsibility within the purview of rules and industry best practices.
Good corporate governance starts from the top. We are fortunate to have a professional and efficient Board
of Directors to oversee our operations and provide us a strategic direction and necessary policy support.
Our shareholders are also equally committed to the long-term success of the Bank. They have provided us
with financial capital, ideas, direction, advice and support that greatly helped us to achieve our goals.
Practices of sound Corporate Governance
Southeast Bank operates within the legal framework of the Companies Act-1994 and as a banking company,
complies with the provisions of the Bank Company Act-1991(Amended up to 2018). Its Corporate Governance
principles serve the goal of strengthening and consolidating company position with sustainable growth
objectives in materializing the trust placed in the company by the shareholders, clients, employees and the
general public. Fair practice, accountability, transparency, compliance, value creation and corporate social
responsibility are the pillars of our corporate governance. To serve the interest of shareholders and other
stakeholders, Southeast Bank’s corporate governance system adheres to ethical business norms with firm
commitment to enhance shareholders’ values and compliance with applicable laws and regulations. The
Bank’s Board of Directors proactively adopts corporate governance code in order to promote the highest
standard of corporate behavior at every level of the organization in building confidence among stakeholders.
Board of Directors, Chairman and CEO
Selection and appointment of Directors
Southeast Bank complies with relevant guidelines of Bangladesh Bank’s circular, rules and regulations
of the Companies Act-1994, Bank Company Act-1991 (amended up to 2018) and Bangladesh Securities
and Exchange Commission’s (BSEC) notification and Articles of Association of the Bank for appointment of
Directors.
As per the Bank Company Act 1991 (amended up to 2018), the Directors are appointed for a term of three
years which can be extended by another two term only subject to approval by the shareholders in the
Annual General Meeting (AGM).
The term of appointment for an Independent Director is three years which can be extended by one term
subject to appointment by the Board and approval by the Shareholders in the AGM. Mentionable that a
former independent director may be considered for re-appointment for another tenure after a time gap
of one tenure, i.e., three years from his/her completion of consecutive two tenures (i.e., six years). For
appointment of an Independent Director, the approval of BSEC is obtained to comply with its requirement.
All appointments of the Board is made subject to approval of Bangladesh Bank. The Managing Director is
appointed for a minimum period of three years subject to the approval received from Bangladesh Bank.
However, unlike other Directors, he is not subject to retirement as long as he remains Managing Director.
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Structure of the Board
The Board of Directors consists of 11 (eleven) Directors including the Managing Director. The Managing
Director is an Executive Director (Ex-Officio). All other 10 (ten) Directors are non-executive directors. Of
the 10 (ten) non-executive directors, 7 (seven) are sponsor directors, 1 (one) director is from the public
shareholders and 2 (two) are independent directors.
Roles and Responsibilities of the Board
The main roles and responsibilities of the Board of Directors as envisaged in the BRPD Circular No.11 dated
27 October, 2013 are the following:
1. approving suitable business strategies

2. fixation of operational budgets
3. approval of financial statements
4. review of Bank’s operational performance towards achievement of objectives
5. approval of policies and operational manuals to establish effective risk management in core banking
areas and internal control.
6. reviewing company’s corporate governance standard for further improvement
7. determining Bank’s corporate social responsibility status and taking steps for its improvement
8. developing compliance culture in the Bank
9. approving proposals which are beyond the delegated business / financial / administrative powers
of the Management
10. appointment of the Managing Director (CEO) and fixation of his benefits
11. purchasing or acquiring property for the Bank
12. providing welfare to the employees
13. making donation for any charitable ventures
14. devising annual work plan for goals and monitoring its pace of achievement.
15. analyzing reasons for success or failure of Bank’s annual budget achievement
16. periodical review of Bank’s operational budget achievement
17. taking risk management initiatives
18. review of sufficiency and requirement for internal control efforts of the Bank
19. reviewing Bank’s human resource policy
20. Bank’s financial management and its periodical review
21. Approving policies or taking policy decisions for improvement of operation and compliance culture
in the Bank.
Rotation and Retirement of Directors
In terms of Article 105 (i) of the Articles of Association of the Bank, one-third of the Directors for the time
being or if their number is not three or multiples of three (3) then the number nearest to one third (1/3rd )
shall retire in rotation from office. The Directors to retire are those who are longest in office. Accordingly, the
following three (3) Directors will retire in the 24th Annual General Meeting and eligible to re-election in the
upcoming 24th AGM of the Bank.
i) Mrs. Duluma Ahmed

ii) Mrs. Rehana Rahman
iii) Mr. Md. Akikur Rahman
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The brief resume of the above Directors in Compliance with notification number BSEC/CMRRCD/2006-158/207/
Admin/80 dated June 03, 2018 of BSEC is appended in the Director's profile and other information about
them as required as per the aforesaid Notification is given below.
Name Expertise Memberships Directors in

(i) Mutual Food Products Ld.
Audit Committee of
Mrs. Duluma Ahmed Banking Activities (ii) Mutual Milk Products Ld.
the Board
(iii) Mutual Trading Co. Ltd.
Audit Committee of (i) Bengal Trade Ways Limited
Mrs. Rehana Rahman Banking Activities
the Board (ii) CHB Building Technologies Ltd.
Executive Committee
Mr. Md. Akikur Rahman Banking Activities -
of the Board
As per Notification No.BSEC/CMRRCD/2006-158/207/Admin/80 on Corporate Governance Code of Bangladesh

Securities and Exchange Commission (BSEC) dated 3 June 2018, under condition 1(2) (e), the tenure of office of
an independent director shall be for a period of 3 (three) years which may be extended for 1 (one) term only.
Accordingly, Dr. Quazi Mesbahuddin Ahmed was appointed as an Independent Director of the Bank in 2016.
Hence, he would be entitled for re-appointment for another term in compliance with the above Notification of
BSEC subject to approval by the shareholders in the ensuing 24th Annual General Meeting.
Non-Executive Directors
All the Directors of Southeast Bank Limited are Non-Executive Directors including two independent directors.
The Managing Director is the only Executive Director on the Board of Directors of the Bank.
Independence of the Non-Executive Directors
All the Non-Executive Directors enjoy full freedom in discharging their responsibilities. They sincerely try
to attend all meetings of the Board and its Committee of which they are members. They spontaneously
participate in the discussion on agenda for a well-thought-out decision and diligently maintain confidentiality
as required under existing regulations.
Beside this, they ensure strict confidentiality of the memo/agenda discussion at the Board Meeting or Board
Committee Meetings information and minutes/ resolutions.
Independent Directors’ Independence
As per existing rules and regulations, Independent Directors are not required to have any significant
relationship, whether pecuniary or otherwise, with the Bank, its top management and the Board apart from
receiving directors’ remuneration for attending Board / Board Committee Meeting. The Bank complies with
the requirement and appoints Independent Directors who do not hold any shares in the Bank and do
not have any family or other relationship with its Board of Directors and its executive management. The
Bank also ensures compliance with Bangladesh Bank’s guidelines and Bangladesh Securities and Exchange
Commission’s notification relating to appointment of Independent Directors and seeks approval from
Bangladesh Securities and Exchange Commission and Bangladesh Bank for appointing a person as an
Independent Director which ensures the independence of the Independent Director.
Chairman and the CEO
The Chairman and the CEO of the Bank are two separate persons in their respective offices and this has
been in practice since inception of the Bank. This also complies with clause 1.4 of the BSEC’s Notification No.
BSEC/CMRRCD/2006-158/207/Admin/80 on Corporate Governance Code, dated 3 June 2018.
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Position of Chairman and the Chief Executive Officer of the Bank
In compliance with Notification of Corporate Governance Code issued by the Bangladesh Securities and
Exchange Commission (BSEC) and Bangladesh Bank’s requirements, the post of the Chairman and the CEO
(Chief Executive Officer) will have to be held by different person. This compliance requirement has been
ensured by the Bank. It has appointed Mr. Alamgir Kabir, FCA as the Chairman of the Board of Directors
and the position of CEO (Managing Director) is held by Mr. M. Kamal Hossain. As per the Organogram of the
Bank, Chairman and the Directors act as non-executives while the Managing Director is the sole executive
director on the Board. In considering the appointment of the Chairman, due procedures are observed. It is
also ensured that the independence of the Chairman is not hampered.
Roles and responsibilities of the Chairman of the Board
The Chairman of the Bank is elected from amongst the member of the Board of Directors after every Annual
General Meeting in obedience to the Articles of Association of the Bank. He carries out his responsibilities
within the purview of the provisions contained in BRPD Circular No.11 dated 27 October, 2013 and Corporate
Governance Code issued by BSEC on 03 June, 2018. The main responsibilities of the Chairman are to:
Give leadership for Bank’s disciplined growth and operation.
Ensure non-intervention of any Director in the routine affairs of the Bank.
Ensure compliance with corporate governance requirements of regulatory bodies.
Bring policies for Board’s deliberations and consideration for Bank’s reforms and development.
Determine sense of direction for the Bank, etc.
Annual Appraisal of Board’s Performance
The shareholders elect the Directors in the Annual General Meeting. The directors are accountable to the
shareholders. In the Annual General Meeting (AGM), the shareholders freely disclose their valued opinion
about the financial position of the Bank and performance of the Board and the shareholders also ask
question and make queries to the members of the Board of Directors during AGM. On behalf of the Board,
the Chairman replies to their all queries made in the meeting. Their constructive suggestions are noted
down and implemented for qualitative improvement of the Bank’s key operational segments.
Policy on Training of Directors
Most of the Directors of the Bank are on the Board for many years. They have acquired enough knowledge
and acumen to lead the Bank effectively to achieve the desired goal. The latest legislations on the financial
sector and directives of the regulatory bodies are made available to them for their instant information in
order to discharge their responsibilities efficiently. They also attend various seminars and symposiums
mainly on issues relating to business, finance, economics, banking and corporate governance organized by
different professional bodies at home and abroad.
Directors’ Knowledge and Expertise in Finance and Accounting
Mr. Alamgir Kabir, FCA, Chairman of the Bank, is a Post-Graduate in commerce. He is also a qualified Chartered
Accountant. One Independent Director served the Government of Bangladesh in different capacities both at
home and abroad and finally retired as Secretary and another Independent Director holds a PhD degree in
Economics and served the government in various high level positions both at home and abroad. They have
enough knowledge and expertise in the field of Accounting and Finance. Most of the other Directors are
successful business entrepreneurs and professionals. They are well conversant in economic, business and
banking related issues.
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Code of Conduct for the Board of Directors
The Board of Directors of the Bank in its 410th meeting held on December 24, 2012, approved inter alia, the
Code of Conduct for the Directors of the Bank. The Directors are sincere in abiding by the Code of Conduct.
There had not been any breach of the Code of Conduct by any Director of the Bank. The Code of Conduct of
the Board of Directors are contained in this Annual Report at Page No. 72.
Directors’ Remuneration
Directors are not eligible for any remuneration other than attendance fee for the Board and its Committee
Meeting. Currently, as per BRPD Circular letter No. 11, dated October 04, 2015, Directors are eligible for
remuneration of BDT 8,000 for attending each meeting but numbers of such Meetings are also prescribed
in the said circular determining the numbers with or without remuneration.
Board Meeting and attendance
The Board of Directors meets as required to discuss financial performance of the Bank, business proposal
strategy, compliance issue etc. The Board also reviews minutes of the subsidiaries, risk management report,
compliance report and approve the quarterly financial results of the Bank in its meeting. In addition, special
meeting of the Board of Directors are held as per instruction of the regulatory authority, when necessary to
discuss and decide on major issues. The Chairman of the Board of Directors allocates sufficient time for the
Directors to consider each agenda in a prudent way and allows them to freely discuss, inquire, and express
opinions on the agenda. Directors who cannot attend the meeting(s) are granted leave of absence by the
Board. During the year 2018 total 29 no. of meetings were held and statement of attendance of the directors
at those meeting are disclosed at Page No. 120
Related Party Transactions
During the year 2018, the Bank had business deals with the following organizations in which the directors
had interest. It was determined on the basis of Common Directorship and Bank’s Subsidiaries.
Nature of
Name of Organization Relationship
transaction
Asia Insurance Ltd. Common Director Insurance Coverage
Southeast Bank Capital Services Ltd. Subsidiary Company Share Capital
Southeast Financial Services (UK) Ltd. Subsidiary Company Share Capital
Southeast Financial Services (Australia) Pty Ltd. Subsidiary Company Share Capital
Southeast Exchange Company (South Africa) Pty Ltd. Subsidiary Company Share Capital
Board’s Committees and their Responsibilities
The Board has constituted following 3(three) Committees:
i) Executive Committee
Composition of Executive Committee
In compliance with the provisions contained in BRPD Circular No.11 dated 27 October, 2013, the
Board of Directors reconstituted the Executive Committee comprising 5 (Five) members. To comply
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with regulatory requirement, no member of the Audit Committee is included as a member of the
Executive Committee.
Responsibilities
The Executive Committee is a body to deliberate on generally important issues and matters in the
execution of operations of the Bank. The committee performs within the power delegated to it by the
Board of Directors. The resolutions of the Executive Committee are submitted before the Board and
ratified by the Board of Directors. The minutes of the Executive Committee are sent to Bangladesh
Bank for their information and record. In 2018, total 5 meetings were held by the committee. The
attendances of the members at those meeting are disclosed at Page No. 120.
ii) Audit Committee
Composition of the Audit Committee:
A 5-member Audit Committee was re-constituted by the Board in compliance with the relevant
provisions contained in BRPD Circular No.11 dated 27 October, 2013 of Bangladesh Bank and
BSEC’s Notification No. BSEC/CMRRCD/2006-158/207/Admin/80 on Corporate Governance Code,
dated 3 June 2018. As per rules, any member of the Executive Committee cannot be the member
of the Audit Committee. A report of the Audit Committee is included in this Annual Report. In 2018,
total 5 meetings were held by the committee. The attendances of the members at those meeting are
disclosed at page no. 121.
Chairman of the Audit Committee
The Chairman of the Audit Committee is a BSEC approved independent director. He is Mr. Syed
Sajedul Karim. He is not involved in the day to day operations of the Bank. He is an experienced
individual and qualified to be the Chairman of the Audit Committee. He did B.A (Hons) and M.A from
Dhaka University. During his 42 years of long service career, Mr. Karim served the Government of
Bangladesh under different capacities both at home and abroad and finally retired as a Secretary
to the Government. Prior to his joining as Secretary, he was Chairman and Chief Executive Officer of
Bangladesh Oil, Gas and Mineral Corporation (known as Petrobangla).
Members’ qualification of Audit Committee
The members of the Audit Committee are qualified and have years of experience in banking and
financial institutions. They are also very competent. Dr. Quazi Mesbahuddin Ahmed is a member of
Audit Committee as another Independent Director of the Bank. He did his Masters as well as PhD in
Economics from the University of Illinois at Urbana-Champaign, USA. He was the former Managing
Director of Palli Karma Sahayak Foundation and Member (GED), Planning Commission Government
of Bangladesh. He has publications on development planning, macroeconomic performance, use of
foreign aid, budgetary accounts, national income accounts, etc.
Internal Control and Compliance Division’s access to Audit Committee
The Head of Internal Control and Compliance Division has direct access to the Audit Committee
and can raise his concerns whenever required. Besides, he presents related memos for the Audit
Committee for taking decisions. Beside this, the Audit Committee meets the Head of ICC at least
once in a year, without management being present, to discuss their remit and any issues arising
from the internal audits carried out.
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Recommendation for appointment of External Auditors
The Audit Committee does an extensive review on the audit work done by the external auditors after
the audited financial statements have been signed. The Audit Committee evaluates the performance
of auditors extensively and ensures that there were no threats to independence or any other issues
with the auditors. The Audit Committee scrutinizes the applications of the auditors and recommends
for appointment/re-appointment of auditors for the next year.
Appointment of External Auditors
M/S Pinaki & Company, “A” ranking Audit Firm has been appointed as External Auditors of the Bank
for the 2nd term in the 23rd Annual General Meeting held on June 30, 2018. They are eligible for
re-appointment as per rules in the ensuing 24th Annual General Meeting. Being satisfied with their
performance, the Audit Committee of the Board of Directors of the Bank recommended their re-
appointment for the third term. The External Auditors enjoy full freedom in their audit of Bank’s
financial statements and reporting to the shareholders of the Bank.
Services not provided by External Auditors
M/S Pinaki & Company is the external auditor of the Bank. The services as are specifically barred in
Bangladesh Securities and Exchange Commission Notification No. BSEC/CMRRCD/2006-158/207/
Admin/80 dated 03 June, 2018 are not obtained from the external auditors.
iii) Risk Management Committee
Composition of Risk Management Committee
In Compliance with BRPD Circular No. 11 dated 27 October 2013, the Board of Directors of SEBL
reconstituted a four-member Risk Management Committee (RMC) of the Board in 2018. The RMC
has been formed to identify and assess risk of the Bank and guide management to formulate action
plans for minimizing and controlling of risk. The Committee reviews the risk management policy and
modifies the same as per requirement.
Responsibilities
The Risk Management Committee is entrusted to examine and review whether management is
properly working on identification, management and mitigation of credit risk, foreign exchange
risk, internal control and compliance risk, money laundering risk, information and communication
technology risk, operation risk, environmental risk, interest rate risk and liquidity risk. They also
ensure whether adequate provision and capital against the said risks are maintained. The roles
and responsibilities as well as the major activities of Risk Management Committee of the Board as
well as the management have been described in “Report of the Risk Management Committee of the
Board” and “Report of Bank’s Chief Risk Officer (CRO)” section of this report. In 2018, total 4 meetings
were held by the Committee. The attendances of the members at those meeting are disclosed at
Page No. 121.
Appointment of Chief Executive Officer (CEO)
In order to strengthen the financial base of the bank and obtain confidence of the depositors, Board of
directors is responsible to appoint an honest, efficient, experienced and suitable CEO or Managing Director
for the Bank in compliance with the relevant circular and rules of Bangladesh Bank and BSEC’s Notification
No. BSEC/CMRRCD/2006-158/207/Admin/80 through Corporate Governance Code, dated 3 June 2018.
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Role and Responsibilities of the Managing Director (CEO)
The main responsibilities and authorities of the Managing Director are enumerated below:
a) In terms of the financial, business and administrative authorities vested upon him by the Board, the
CEO shall discharge his own responsibilities. He shall remain accountable for achievement of financial
and other business targets by means of business plans, efficient implementation thereof and prudent
administrative and financial management.
b) The CEO shall ensure compliance with the Bank Company Act, 1991 (amended up to 2018) and other
relevant laws and regulations in discharge of functions in the bank.
c) The CEO shall include information on violation of any law, rules, regulation including Bank Company
Act, 1991 (amended up to 2018) while presenting memorandums before the Board or the Committees
formed by the Board.
d) The CEO will provide all sorts of information to Bangladesh Bank about the violation of Bank Company
Act, 1991(amended up to 2018) and any violation of Laws, Rules and Regulations.
e) The recruitment and promotion of all staff of the Bank except those in the two tiers below him shall rest
on the CEO. He shall act in such cases in accordance with the approved service rules on the basis of the
human resources policy and sanctioned strength of employees as approved by the Board. The Board or
the Chairman of any Committee of the Board or any Director does not get involved or intervene in such
affairs.
f) The authority relating to transfer of and disciplinary measures against the staff, except those at two tiers
below the CEO, shall rest on him, which he shall apply in accordance with the approved service rules.
Besides, under the purview of the human resources policy as approved by the Board, he shall nominate
officers for training. Besides, the CEO shall assume any other responsibility if the Board assigns within
the purview of the Rules, Regulations, Acts and Articles of Association of the Bank.
Benefits provided to the Directors and the Managing Director
In accordance with the guidelines of Bangladesh Bank, the following facilities can only be given to the
Directors.
An office chamber, one Private Secretary / Office Assistant, a telephone in office, one
Chairman :
mobile phone for use within the country and a full time car.
Directors : Fees and other facilities for attending each meeting of the Board or its any Committee.
Only those benefits as are agreed upon in his contractual appointment and as are
Managing Director :
approved by Bangladesh Bank.
Annual Evaluation of Performance of the Managing Director (CEO) of the Bank
The Board of Directors prescribes the roles and responsibilities of the Chief Executive Officer (CEO) of the
Bank. His performance is assessed on certain Key Performance Indicators (KPIs). A few mentionable KPIs for
the CEO are to meet the annual budgetary targets of the Bank which was approved by the Board, maximize
shareholder value measured through desired ROA, ROI, ROE, EPS and Risk Management as per expectation of
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the Board, sustainable growth in investment and growth of Loans and Deposits, Cost to Income Ratio, Loans
Write Off and its recovery, Capital to Risk Weighted Assets Ratio, Advance-Deposit Ratio, revenue earning
for the Bank, gradual reduction of the NPL ratio for maintaining asset quality of the Bank and improvement
in the scores for CAMELS rating. The Board evaluates the performance of the Managing Director in each
month when the month-end financial performance of the Bank is placed before the Board for review. Apart
from that, the Board seeks MD’s reports on various operational aspects periodically to assess the trend of
movement of the Bank in various indicators. MD’s quality leadership to post better performance is always
expected. The performance of the Managing Director is evaluated again annually by the Board based on
Bank’s operational results mainly in the achievement of operational budgets.
Appointment of Company Secretary (CS), Chief Financial Officer (CFO) and Head
of Internal Audit and Compliance (HIAC).
The Board appointed a Company Secretary (CS), a Chief Financial Officer (CFO) and a Head of Internal Audit
and Compliance (HIAC) as per the policy of the Bank and related rules and regulations. The positions of
Company Secretary (CS), Chief Financial Officer (CFO) and Head of Internal Audit and Compliance (HIAC) are
held by different individuals and they are well conversant in the field of regulatory, financial and corporate
laws to carry out their assigned roles, responsibilities and duties.
Highlights on Central Bank Inspection
In the year 2018, Southeast Bank Limited (SEBL) received 45 (forty five) inspection Reports on Head office
and different branches of SEBL from Bangladesh Bank. SEBL submitted compliances on said reports to
Bangladesh Bank in time. Appropriate actions have been taken for implementation of the recommendations
of Bangladesh Bank’s inspection Teams.
Internal Control and Risk Management
Internal Control
The Board of Directors of Southeast Bank Ltd. ensures maintenance of a sound system of internal control
to safeguard bank’s assets. The Board through its Audit Committee conducts an annual review and evaluate
effectiveness of the system of Internal Control of the Bank.
Establishment and Review of Internal Control System
A report on Establishment and Review of Internal Control System is included in this report.
Identification of risk to which SEBL is exposed internally and externally
The risk related issues of the Bank are looked after by the Risk Management Committee of the Board. A
report on Risk Management is included at page no. 152 of this Annual Report.
Vision, Mission Statements and Strategy approved by the Board
Vision and Mission Statements of the Bank
The vision, mission statements and the strategy of the Bank have been included in the beginning pages
of the Annual Report. Those were approved by the Board. The Board firmly adheres to them.
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Business objectives and areas of business focus
The Board always sets business objectives and areas for focus taking into account the overall financial
market development and business environment. The latest business objectives and areas of business
focus can be found in the “Strategic Priorities Statement” of the Bank at page no. 39 in this Annual Report.
Strategies to achieve business objectives
Our strategies to achieve business objectives are elaborately discussed in the “Strategic Objectives” as
contained in this Annual Report at page no. 38.
Ethics and Compliance

Code of Conduct for Directors
The Report contains this issue at page no. 72.
Code of Conduct for Bank’s Employees
Southeast Bank has a Code of Conduct and Ethical Guidelines for Bank’s employees which are integral parts
of the Service Rules and Regulations for the employees of the Bank. The employees of the Bank comply with
the code of conduct and requirements of ethical principles.
The Board’s commitment to establishing high level of ethics and compliance

within the organization
The Board of Directors has always been deeply committed to establishing a high level of ethics and
compliance among all employees of the Bank. It has always encouraged the management to ensure that
everyone maintains a high ethical standard within the Bank. The Board guides the management on policies
that should be adopted and followed by everyone in the Bank.
Management Committee and their responsibilities
Senior Management Team (SMT)
A Senior Management Team (SMT) is working in the Bank. It is composed of senior members of the
Management Team. Senior management consists of a core group of individuals responsible and accountable
to the Board for the sound and prudent day-to-day management of the bank. The organization and
procedures and decision making of senior management are clear and transparent and designed to promote
effective management of the bank. This includes clarity on the role, authority and responsibility of the various
positions within senior management, including that of the CEO and Managing Director. Consistent with the
direction given by the Board, senior management implement business strategies, risk management systems,
risk culture, processes and controls for managing the risks – both financial and non-financial – to which the
bank is exposed to. The sub-committees of the Senior Management Team for the following issues were
constituted:
(a) Product Development and Marketing
(b) Strategic Planning Issues and
(c) Corporate Governance and Administrative Issues.
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The following Sub-Committees of SMT are also functioning in the Bank:
i) Supervisory Review Process (SRP) team
SRP team, headed by the Managing Director of the Bank, is comprised of the divisional heads of ID,
CRMD, ICCD, Treasury, Legal Affairs, FCAD, RMD and AMLD. The main function of the team is to assess
additional capital requirement for the risks under pillar II of Basel III.
ii) Executive Risk Management Committee (ERMC)
ERMC, headed by the Chief Risk Officer, is comprised of the divisional heads of CRMD, ICCD, AMLD,
IT, Treasury and FCAD. Risk Management Division (RMD) acts as the secretariat of the committee. The
functions of ERMC are to identify, measure and manage the Bank’s existing and potential risks through
detailed risk analysis; to determine risk appetite, tolerance and limits in line with strategic planning; to
formulate risk policies for business units etc.
iii) Credit Risk Management Committee (CRMC):
Credit Risk Management Committee, headed by the Chief Risk Officer has been constituted to oversee
the implementation status of approved Credit Risk Management Guidelines and other credit related
policies of the Bank.
iv) Asset Liability Committee (ALCO):
Asset Liability Management Committee consists of the Managing Director, Additional Managing Directors
and strategically important Divisional Heads of Head Office.
v) Central Compliance Committee (CCC):
Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) are getting added importance
day by day. All issues relating to AML and CFT are managed and monitored by the Bank. As required by the
regulatory authority, Central Compliance Committee (CCC) has been working on these issues in the Bank.
vi) Integrity Committee
As instructed by Bangladesh Bank, a 5-Member Integrity Committee of the Bank headed by a Additional
Managing Director is actively functioning in the Bank. An Executive Vice President of the Bank is the Focal
Point of the Committee. The Committee sits in meeting to discharge its responsibilities effectively.
Function of Integrity Committee:
The functional areas of the Integrity Committee include, but are not limited to, implementation of
National Integrity Strategy, implementation of Bank’s action-plan, resolving identified problems related
to integrity, complaint management, reporting to the regulators, performing relevant activities in line
with the guidelines of Bangladesh Bank regarding implementation of national Integrity Strategy, etc.
vii) Tender Committee:
Transparency is very important in procuring things and services for the Bank. A 7-members Tender
Committee is actively functioning in the Bank.
viii) Taskforce for recovery of classified Loans and advances:
A seven members taskforce for recovery of classified loans and advances are working in the Bank. The
taskforce frequently sits in meeting to discharge its responsibilities effectively.
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ix) Procurement Committee:
The procurement policy of Southeast Bank Limited is designed to ensure that the purchase of all goods,
services and works required for the satisfactory operation of the Bank is done in a transparent, timely
and efficient manner.
x) Taskforce for Monitoring and Recovery of Re-Scheduled and Re-Structured Loans:
A Ten Member Taskforce for Monitoring and Recovery of Re-Scheduled and Re-Structured Loans are
working in the Bank. The Taskforce frequently sits in meetings.
xi) Special Asset Management Committee (SMAC) for recovery of classified and written-off loans:
The increase of non-performing loans (NPLs) and written-off loans has a negative impact on profitability,
capital adequacy, asset-liability management and overall reputation of the Bank. Therefore, it is essential
to strengthen recovery drive to downsize the non-performing/classified loans and written-off loans
through cash recovery. From this point of view, a Special Asset Management Committee (SAMC) with high
level executives / officers have been formed / reformed at Head Office. They are headed by Additional
Managing Directors of the Bank.
The Taskforce and the Special Asset Management Committee review the recovery progress of classified
and written-off loans on a monthly basis and provide necessary guidelines to the branches accordingly.
They identify the reasons for becoming the loans non-performing in each and every individual case and
chalk out the strategy of recovery upon discussion meeting / dialogue with the concerned borrowers
at Head Office / Branch. They also review the court cases / suits against the defaulted borrowers and
continue follow up with the panel lawyers of the Bank for early disposal of the suits. The members of the
Taskforce and the Special Asset Management Committee visit clients’ factory, office, security / mortgaged
properties as and when needed. They also place their observations and recommendations before the
competent authority for necessary steps for recovery of the loans.
xii) IT Steering Committee:
An IT Steering Committee has been formed in 2012 comprising 12 (twelve) senior officials of the Bank for
overall supervision of ICT Operations and ICT Projects Management.
Disclosure of key policies with regard to remuneration of directors, senior

management and employees
All employees including the Senior Management employees are paid competitive remuneration package.
The structure and level of remuneration are reviewed time to time based on Bank’s performance and
affordability. The remuneration also stresses on ensuring internal and external pay equity.
Conflict of Interest
The Code of Ethics and Business Conduct require all employees to avoid situations where their personal
interests are in conflict, or may appear to be in conflict with those of the Bank. Employees are advised to
take particular care when they are responsible for dealing with customers, business associates and agents
on behalf of the Bank. Any failure to disclose a conflict of interest leads to a disciplinary action.
Human Capital
The detailed discussion on Bank’s Human Capital has been presented at Page No. 246 of this Annual Report.
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Communication to Shareholders and Stakeholders:
Every shareholder is given the highest priority by SEBL. The Bank tries to maintain liaison with all shareholders
as far as possible and ensures that all stakeholders are informed of the bank’s activities on a routine basis.
Shareholders and stakeholders of the Bank may contact the Bank’s Investor Relation Department (IRD)
during office hour for any information and queries. Investor Relation Department performs all sorts of share
related work, including Share Warrant Process, Share de-materialization and re-materialization, monitoring
share movement through Central Depository Bangladesh Limited (CDBL), distribution of dividend warrant
including fractional dividend entitlements and re-validates the dividend warrants etc.
Bank always provides all types of accounts i.e. quarterly, half-yearly and annual financial statements
and clear assessment of its performance or information are updated on the website and notified to all
stakeholders on regular basis. The Directors appreciate the importance of general shareholders of the
Bank and use the Bank’s AGM as an ample opportunity to communicate with them. SEBL send copies of
Annual Reports through the electronic mail (e-mail) and mailing address of the shareholders available in
the Beneficial Owner (BO) account with the depository in order that these are made available to them well
in advance for detailed and constructive discussion. It is the company’s policy to give the shareholders the
opportunity to ask questions about its activities and future prospects at the AGM. The Board also structures
these meetings so that shareholders can vote on each agenda by proposing resolutions. Further details in
report of communications with different stakeholders are given at Page No. 258.
Company’s policy to maintaining a website and ensuring participation of

shareholders in the Annual General Meeting and providing reasonable
opportunity for the shareholder participation in the AGM
SEBL maintains an official website (www.southeastbank.com.bd) which is linked with the websites of the
stock exchanges and other related organizations.
SEBL sincerely tries to ensure that all shareholders can participate in the AGM. Annual Reports are sent at
least 14 days before the AGM to ensure that all shareholders are notified about the event date, place and
time. Also, SEBL always ensures that AGM is held at a convenient place where all shareholders can attend.
Notices to shareholders are also published in the daily newspapers and through the digital media as well. To
ensure compliance with regulatory bodies, SEBL ensures that it publishes Bank’s Financial Statements in two
widely circulated national dailies, one in Bengali and one in English as well as in one online daily news
portal. Financial Statements are also sent to the BSEC and stock exchanges.
SEBL ensures effective communication with the shareholders and encourages shareholder participation at
the AGM. Good number of shareholders who spoke in the Bank’s each AGM in the past bear the testimony of
the statement. SEBL connects with the investors through AGM, EGM, Annual Report and Company’s website.
All of the Bank’s publications to the market may be retrieved through the Company’s website. Shareholders
are offered the chance to evaluate the performance of the Board regarding the operation of the Bank. They
are also given scope to make queries to the Company’s auditors concerning topics linked to the audit of the
Company’s financial statements at the AGM.
Environmental and Social Obligations
Southeast Bank integrates environmental and social obligation into all its business activities with the belief
that success is not only measured by financial results but also by the commitment to give society back to
society and to good environmental practices. The Bank also adopted policies and procedures that integrate
social, environmental, ethical, human rights or consumer concerns into the business operations and the
core strategy, all in close collaboration with stakeholders.
118
a bank with vision
The establishment of CSR strategy of SEBL is a crucial component that reflects the bank’s aspiration for sustainable
development of the society and creating meaningful value for stakeholders. The Bank carefully planned CSR
activities to address the various needs of the community as well as to encourage employees to play an active
role. In response to the worldwide call for reduction of global warming, SEBL is committed to reduce energy
usage and office consumables. Reduction in paper usage is achieved by making reports available in soft copies
and encouraging staff to print on both sides of the paper and print documents only when necessary. SEBL
persuades its customers to avail facilities for renewable energy generation and other environmentally friendly
projects. The Bank has set guideline, namely “Southeast Shobuj Jibon” targeted to efficient use of electricity,
water, paper and re-use of equipments. We believe that every small ‘GREEN’ step taken today would go a long
way in building a greener tomorrow. General description of Bank’s policies and practices relating to social and
environmental responsibility of Southeast Bank Limited are provided at Page No. 238.
Sustainable Financing
The Board of Directors of the Bank supervises and takes decision in principle and provides strategic directions
regarding sustainable banking and sustainable finance (environment friendly banking) of the Bank. The Risk
Management Committee also monitors all the social and ecological factors with the aim of protecting the environment
and conserving natural resource to achieve sustainable development goals as per guidelines of Bangladesh Bank.
Green Award
As part of environmental and social obligation, SEBL wants to inspire individuals and organizations working
actively to preserve environment. With this end in view, the Bank has introduced ‘Southeast Bank-The Financial
Express Policy Research Institute Green Award’. The award aims at recognizing and honoring individuals and
organizations for significant contributions towards achieving environmental sustainability through green
business and operations, knowledge management and community engagement. The award also aims at
boosting synergies between the Bank and the climate warriors for conserving environmental resources.
Report to the Shareholders of Southeast Bank Limited on status of compliance

on the Corporate Governance Code:
Certificate on states of compliance on Corporate Governance Code from M/S Syful Shamsul Alam & Co.,
Chartered Accountants on compliance of the Corporate Governance and checklist under condition no. 9 of
BSEC's Notifications are exhibited in page no. 135 of this Annual Report.
Declaration or Certification by the Chief Executive Officer and Chief Financial

Officer to the Board in line with BSEC notification
In compliance with the Notification No. BSEC/CMRRCD/2006-158/207/Admin/80 on Corporate Governance

Code of Bangladesh Securities and Exchange Commission (BSEC) dated 3 June 2018, under condition No.
1(5) (xxvi) a Declaration or Certification by the Chief Executive Officer and Chief Financial Officer of the Bank
is exhibited in a separate segment at page 124.
119
Directors Remuneration
Statement of Board meetings held during the year 2018 and the attendance of Directors from 01.01.2018
to 31.12.2018 are appended below:
Presence of Directors
in the Meetings, During
Sl. their Tenure Remuneration
Name Designation
No No. of Remuneration Drawn
Meeting Present Absent
held
1 Mr. Alamgir Kabir, FCA Chairman 29 28 1 8,000 2,24,000
Vice
2 Mrs. Duluma Ahmed 29 24 5 8,000 1,92,000
Chairperson
3 Mr. M. A. Kashem Director 29 24 5 8,000 1,92,000
4 Mr. Azim Uddin Ahmed Director 29 23 6 8,000 1,84,000
5 Mrs. Jusna Ara Kashem Director 29 24 5 8,000 1,92,000
6 Mrs. Rehana Rahman Director 29 20 9 8,000 1,60,000
7 Mr. Md. Akikur Rahman Director 29 9 20 8,000 72,000
8 Mrs. Sirat Monira Director 29 26 3 8,000 2,08,000
Mr. A.H.M. Moazzem Hossain Independent
9 29 12 2 8,000 96,000
(Retired on June 30, 2018) Director
Mr. Syed Sajedul Karim Independent
10 29 12 1 8,000 96,000
(Appointed on June 30, 2018) Director
Independent
11 Dr. Quazi Mesbahuddin Ahmed 29 28 1 8,000 2,24,000
Director
Managing
12 Mr. M. Kamal Hossain 29 25 - - -
Director
* Note: Directors who could not attend any meeting were granted leave of absence by the Board.
Executive Committee Meetings
Statement of Executive Committee held during the year 2018 and the attendance of member from 01.01.2018
Presence of Members in
the Meetings, During their
Sl. Tenure Remuneration
Name Designation Remuneration
No. No. of Drawn
held
1 Mr. Alamgir Kabir, FCA Chairman 5 5 - 8,000 40,000
2 Mr. M. A. Kashem Member 5 2 3 8,000 16,000
3 Mr. Azim Uddin Ahmed Member 5 3 2 8,000 24,000
4 Mr. Md. Akikur Rahman Member 5 3 2 8,000 24,000
5 Mr. M Kamal Hossain Member 5 5 - - -
120
a bank with vision
Audit Committee meetings
Statement of Audit Committee held during the year 2018 and the attendance of member from 01.01.2018
Presence of Members
Sl their Tenure Remuneration
No No. of Drawn
held
1 Mr. Syed Sajedul Karim
Chairman 5 2 - 8,000 16,000
(Appointed on June 30, 2018)
2 Mrs. Duluma Ahmed Member 5 3 2 8,000 24,000
3 Mrs. Jusna Ara Kashem Member 5 5 - 8,000 40,000
4 Mrs. Rehana Rahman Member 5 5 - 8,000 40,000
5
Dr. Quazi Mesbahuddin Ahmed Member 5 5 - 8,000 40,000
6 Mr. A.H.M. Moazzem Hossain

Member 5 2 - 8,000 16,000
(Retired on June 30, 2018)
Risk Management Committee meetings
Statement of Risk Management Committee held during the year 2018 and the attendance of member from
01.01.2018 to 31.12.2018 are appended below:
Presence of Members
their Tenure
Sl. Remuneration
No Drawn
No. of
held
1 Mr. Alamgir Kabir, FCA Chairman 4 4 - 8,000 32,000
2 Mr. M. A. Kashem Member 4 2 2 8,000 16,000
3 Mr. Azim Uddin Ahmed Member 4 3 1 8,000 24,000
Mr. Syed Sajedul Karim

4 Member 4 2 - 8,000 16,000
(Appointed on June 30, 2018)
Mr. A.H.M. Moazzem Hossain
5 Member 4 2 - 8,000 16,000
(Retired on June 30, 2018)
121
Shareholding Pattern along with name wise details:
i. Shares held by Parent/Subsidiary/Associated Companies and other related Parties: NIL
ii. Shareholding of the Board of Directors.
Sl.
Name of the Directors Designation No. of Shares Value in BDT
No
1 Mr. Alamgir Kabir, FCA Chairman 23,688,872 236,888,720.00
2 Mrs. Duluma Ahmed Vice-Chairperson 21,945,153 219,451,530.00
3 Mr. M. A. Kashem Director 23,353,119 233,531,190.00
4 Mr. Azim Uddin Ahmed Director 29,314,345 293,143,450.00
5 Mrs. Jusna Ara Kashem Director 21,090,453 210,904,530.00
6 Mr. Md. Akikur Rahman Director 21,410,290 214,102,900.00
7 Mrs. Rehana Rahman Director 21,670,766 216,707,660.00
Mrs. Sirat Monira
8 Director 138,629 1,386,290.00
Representing public shareholders
9 Mr. Syed Sajedul Karim Independent Director - -
10 Dr. Quazi Mesbahuddin Ahmed Independent Director - -
Mr. M. Kamal Hossain
11 Managing Director - -
Managing Director
Total 162,611,627 1,626,116,270.00
iii. Shares held by Managing Director, Company Secretary, Chief Financial Officer, Head of Internal
Control and Compliance and their spouses and minor children.
Sl. Shareholdings as on
Designation
No. 31.12.2018
1 a) M. Kamal Hossain Nil
Managing Director
b) Spouse / Minor Children of Managing Director Nil
2 a) A.K.M. Nazmul Haider Nil
Company Secretary
b) Spouse / Minor Children of Company Secretary Nil
3 a) Khaled Mahbub Morshed Nil
Head of Internal Control and Compliance
b) Spouse / Minor Children of the Head of Internal Control and Compliance Nil
4 a) Rasedul Islam, FCA Nil
Chief Financial Officer (Acting)
b) Spouse / Minor Children of the Chief Financial Officer Nil
122
a bank with vision
iv. Shares held by top five salaried Executives in the regular services of the Bank:
Sl. Shareholding as on
Name Designation
No. 31.12.2018
1. S. M. Mainuddin Chowdhury Additional Managing Director Nil
2. Anwar Uddin Deputy Managing Director Nil
3. Syed Faisal Omar Senior Executive Vice President Nil
4. Khandoker Zibanur Rahman Executive Vice President Nil
5. Mohammad Nurul Islam Executive Vice President Nil
v. List of Shareholders holdings 10% and above shares in the Paid-Up-Capital of the Bank. : NIL
Disclosure about Family Domination in the Bank
There is no family domination in the Bank because any individual or family does not hold majority shares of
the company to control the company unilaterally.
vi. Free-Float Shares
Free float shares is generally described as those portion of shares held by investors, other than restricted
shares owned by company’s sponsor shareholders/directors which are restricted to buying and selling
under securities laws.
Free float shares of our Bank is 61.17 percent. These shares are available for free-trading in the bourses.
The size of free float shares indicates that their price cannot be easily manipulated by a vested quarter. For
obvious reasons, general investors opt to invest in our shares.
123
Managing Director's and CFO's

Declaration to the Board
Date: April 29, 2019
The Board of Directors

Eunoos Trade Centre
52-53 Dilkusha C/A
Dhaka-1000.
Sub: Declaration on Financial Statements for the year ended on December 31, 2018
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 3 June 2018 under section 2CC of the Securities and Exchange
Ordinance, 1969, we do hereby declare that:
i) The Financial Statements of Southeast Bank Limited for the year ended on 31st December, 2018 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;
ii) 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;
iii) The form and substance of transactions and the Company’s state of affairs have been reasonably and
fairly presented in its financial statements;
iv) To ensure above, the Company has taken proper and adequate care in installing a system of internal
control and maintenance of accounting records;
v) Our internal auditors have conducted periodic audits to provide reasonable assurance that the
established policies and procedures of the Company were consistently followed; and
vi) 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 31st December, 2018 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,
Chief Financial Officer (Acting) Managing Director
124
a bank with vision
Compliance Report on BSEC’s Notification

on Corporate Governance Code
Status of compliance with the conditions imposed by the Commission’s
Notification No.BSEC/CMRRCD/2006-158/207/Admin/80, dated 3 June 2018
issued under section 2CC of the Securities and Exchange Ordinance, 1969:
(Report under Condition No. 9)

Compliance Status
(Put  in the appropriate
Condition Remarks (if
Title column)
No. any)
Not
Complied
Complied
The total number of members of a company’s Board of
1(1) Directors (hereinafter referred to as “Board”) shall not be  - -
less than 5 (five) and more than 20 (twenty).
At least one-fifth (1/5) of the total number of directors in
the company’s Board shall be independent directors; any
1(2)(a)  - -
fraction shall be considered to the next integer or whole
number for calculating number of independent director(s);
who either does not hold any share in the company or
1(2)(b)(i) holds less than one percent (1%) shares of the total paid-  -
-
up shares of the company;
who is not a sponsor of the company or is not connected
with the company’s any sponsor or director or nominated
director or shareholder of the company or any of its
associates, sister concerns, subsidiaries and parents
1(2)(b)(ii) or holding entities who holds one percent (1%) or more  - -
shares of the total paid-up shares of the company on
the basis of family relationship and his or her family
members also shall not hold above mentioned shares in
the company.
who has not been an executive of the company in -
1(2)(b)(iii)  -
immediately preceding 2 (two) financial years;
who does not have any other relationship, whether
-
1(2)(b)(iv) pecuniary or otherwise, with the company or its subsidiary  -
or associated companies;
who is not a member or TREC (Trading Right Entitlement
1(2)(b)(v) Certificate) holder, director or officer of any stock  -
-
exchange;
who is not a shareholder, director excepting independent
1(2)(b)(vi) director or officer of any member or TREC holder of stock  - -
exchange or an intermediary of the capital market;
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
1(2)(b)(vii)  -
engaged in internal audit services or audit firm conducting -
special audit or professional certifying compliance of this
Code;
who is not an independent director in more than 5 (five) -
1(2)(b)(viii)  -
listed companies;
who has not been convicted by a court of competent
jurisdiction as a defaulter in payment of any loan or any
1(2)(b)(ix)  - -
advance to a bank or a Non-Bank Financial Institution
(NBFI);
125
Compliance Status
Title column)
No. any)
Not
Complied
Complied
who has not been convicted for a criminal offence involving -
1(2)(b)(x)  -
moral turpitude;
The independent director(s) shall be appointed by the
1(2)(c) Board and approved by the shareholders in the Annual  - -
General Meeting (AGM);
The post of independent director(s) cannot remain vacant
1(2)(d)  - -
for more than 90 (ninety) days.
The tenure of office of an independent director shall be
1(2)(e) for a period of 3 (three) years, which may be extended for  -
-
1 (one) tenure only.
Independent director shall be a knowledgeable individual
with integrity who is able to ensure compliance with
1(3)(a) 
financial laws, regulatory requirements and corporate laws -
-
and can make meaningful contribution to the business;
Business Leader who is or was a promoter or director of
an unlisted company having minimum paid-up capital of
1(3)(b)(i) Tk. 100.00 million or any listed company or a member of - -
N/A
any national or international chamber of commerce or
business association;
Corporate Leader who is or was a top level executive not
lower than Chief Executive Officer or Managing Director
or Deputy Managing Director or Chief Financial Officer
or Head of Finance or Accounts or Company Secretary
1(3)(b)(ii)  -
or Head of Internal Audit and Compliance or Head of -
Legal Service or a candidate with equivalent position of
an unlisted company having minimum paid-up capital of
Tk.100.00 million or of a listed company;
Former official of government or statutory or autonomous
or regulatory body in the position not below 5th Grade
1(3)(b)(iii) of the national pay scale, who has at least educational  - -
background of bachelor degree in economics or
commerce or business or Law;
University Teacher who has educational background in
1(3)(b)(iv)  -
Economics or Commerce or Business Studies or Law; -
Professional who is or was an advocate practicing at least
in the High Court Division of Bangladesh Supreme Court
or a Chartered Accountant or Cost and Management
1(3)(b)(v) Accountant or Chartered Financial Analyst or Chartered - - N/A
Certified Accountant or Certified Public Accountant
or Chartered Management Accountant or Chartered
Secretary or equivalent qualification;
The independent director(s) shall have at least 10 (ten)
1(3)(c)  - -
years of experiences in any field mentioned in clause (b);
In special cases, the above qualifications or experiences
1(3)(d) may be relaxed subject to prior approval of the - - N/A
Commission.
The positions of the Chairperson of the Board and the
1(4)(a) Managing Director (MD) and/or Chief Executive Officer  -
-
(CEO) of the company shall be filled by different individuals;
The Managing Director (MD) and/or Chief Executive Officer
1(4)(b) (CEO) of a listed company shall not hold the same position  - -
in another listed company;
The Chairperson of the Board shall be elected from among -
1(4)(c)  -
the non-executive directors of the company;
126
a bank with vision
Compliance Status
Title column)
No. any)
Not
Complied
Complied
The Board shall clearly define respective roles and
1(4)(d) responsibilities of the Chairperson and the Managing  -
-
Director and/or Chief Executive Officer;
In the absence of the Chairperson of the Board, the
remaining members may elect one of themselves from
non-executive directors as Chairperson for that particular  - -
1(4)(e)
Board’s meeting; the reason of absence of the regular
Chairperson shall be duly recorded in the minutes.
An industry outlook and possible future developments in
1(5)(i)  - -
the industry;
1(5)(ii) The segment-wise or product-wise performance;  -
Risks and concerns including internal and external risk
1(5)(iii) factors, threat to sustainability and negative impact on  - -
environment, if any;
A discussion on Cost of Goods sold, Gross Profit Margin
1(5)(iv) - - N/A
and Net Profit Margin, where applicable;
A discussion on continuity of any extraordinary activities
1(5)(v) - - N/A
and their implications (gain or loss);
A detailed discussion on related party transactions along
with a statement showing amount, nature of related party,
1(5)(vi)  - -
nature of transactions and basis of transactions of all
related party transactions;
A statement of utilization of proceeds raised through
1(5)(vii) - -
public issues, rights issues and/or any other instruments; 
An explanation if the financial results deteriorate after
the company goes for Initial Public Offering (IPO), Repeat
1(5)(viii) - - N/A
Public Offering (RPO), Rights Share Offer, Direct Listing,
etc.;
An explanation on any significant variance that occurs
1(5)(ix) between Quarterly Financial Performances and Annual  - -
Financial Statements;
1(5)(x) A statement of remuneration paid to the directors -
 -
including independent directors;
A statement that the financial statements prepared by
the management of the issuer company present fairly its
1(5)(xi)  - -
state of affairs, the result of its operations, cash flows and
changes in equity;
A statement that proper books of account of the issuer -
1(5)(xii)  -
company have been maintained;
A statement that appropriate accounting policies have
been consistently applied in preparation of the financial
1(5)(xiii)  - -
statements and that the accounting estimates are based
on reasonable and prudent judgment;
A statement that International Accounting Standards
(IAS) or International Financial Reporting Standards
1(5)(xiv) (IFRS), as applicable in Bangladesh, have been followed in  - -
preparation of the financial statements and any departure
there from has been adequately disclosed;
A statement that the system of internal control is sound
-
1(5)(xv) in design and has been effectively implemented and  -
monitored;
A statement that minority shareholders have been
protected from abusive actions by, or in the interest of,
1(5)(xvi)  - -
controlling shareholders acting either directly or indirectly
and have effective means of redress;
127
Compliance Status
Title column)
No. any)
Not
Complied
Complied
A statement that there is no significant doubt upon the
issuer company’s ability to continue as a going concern,
1(5)(xvii) if the issuer company is not considered to be a going  - -
concern, the fact along with reasons there of shall be
disclosed;
An explanation that significant deviations from the last
1(5)(xviii) year’s operating results of the issuer company shall be  -
-
highlighted and the reasons thereof shall be explained;
A statement where key operating and financial data of at -
 -
1(5)(xix) least preceding 5 (five) years shall be summarized;
An explanation on the reasons if the issuer company has
1(5)(xx) - - N/A
not declared dividend (cash or stock) for the year;
Board’s statement to the effect that no bonus share or
1(5)(xxi) stock dividend has been or shall be declared as interim - - N/A
dividend;
The total number of Board meetings held during the year -
1(5)(xxii)  -
and attendance by each director;
Parent or Subsidiary or Associated Companies and other -
1(5)(xxiii)(a)  -
related parties (name-wise details);
Directors, Chief Executive Officer, Company Secretary,
Chief Financial Officer, Head of Internal Audit and
1(5)(xxiii)(b)  - -
Compliance and their spouses and minor children (name-
wise details);
1(5)(xxiii)(c) Executives;  - -
Shareholders holding ten percent (10%) or more voting
1(5)(xxiii)(d) - - N/A
interest in the company (name-wise details);
In case of the appointment or reappointment of a
1(5)(xxiv) director, a disclosure on the following information to the
shareholders:
1(5)(xxiv)(a) a brief resume of the director;  -
1(5)(xxiv)(b) nature of his or her expertise in specific functional areas;  -
names of companies in which the person also holds the
1(5)(xxiv)(c) directorship and the membership of committees of the  - -
Board;
accounting policies and estimation for preparation of
1(5)(xxv)(a)  - -
financial statements;
changes in accounting policies and estimation, if any,
clearly describing the effect on financial performance
1(5)(xxv)(b)  - -
or results and financial position as well as cash flows in
absolute figure for such changes;
Comparative analysis (including effects of inflation) of
financial performance or results and financial position as
1(5)(xxv)(c)  - -
well as cash flows for current financial year with immediate
preceding five years explaining reasons thereof;
compare such financial performance or results and
1(5)(xxv)(d) financial position as well as cash flows with the peer  -
-
industry scenario;
briefly explain the financial and economic scenario of the
1(5)(xxv)(e)  - -
country and the globe;
risks and concerns issues related to the financial
1(5) (xxv)(f) statements, explaining such risk and concerns mitigation  - -
plan of the company;
future plan or projection or forecast for company’s
operation, performance and financial position, with
1(5)(xxv)(g)  - -
justification thereof, i.e., actual position shall be explained
to the shareholders in the next AGM;
128
a bank with vision
Compliance Status
Title column)
No. any)
Not
Complied
Complied
Declaration or certification by the CEO and the CFO to
1(5)(xxvi) the Board as required under condition No. 3(3) shall be  - -
disclosed as per Annexure-A;
The report as well as certificate regarding compliance of
1(5)(xxvii) conditions of this Code as required under condition No.9  - -
shall be disclosed as per Annexure-B and Annexure-C.
The company shall conduct its Board meetings and record
the minutes of the meetings as well as keep required books
and records in line with the provisions of the relevant
1(6) Bangladesh Secretarial Standards (BSS) as adopted by the  - -
Institute of Chartered Secretaries of Bangladesh (ICSB) in
so far as those standards are not inconsistent with any
condition of this Code.
The Board shall lay down a code of conduct, based on the The Company
recommendation of the Nomination and Remuneration is waiting for
1(7)(a) Committee (NRC), for the Chairperson of the Board, N/A -
other board members and Chief Executive Officer of the Bangladesh Bank
company; reply
1 (7) (b) The code of conduct as determined by the NRC shall be N/A - -Do-
posted on the website of the company.
Provisions relating to the composition of the Board of
2(a) the holding company shall be made applicable to the  - -
composition of the Board of the subsidiary company;
At least 1 (one) independent director of the Board of the
2(b) holding company shall be a director on the Board of the  - -
subsidiary company;
The minutes of the Board meeting of the subsidiary
2(c) company shall be placed for review at the following Board  - -
meeting of the holding company;
The minutes of the respective Board meeting of the
2(d) holding company shall state that they have reviewed the  - -
affairs of the subsidiary company also;
The Audit Committee of the holding company shall
2(e) also review the financial statements, in particular the  - -
investments made by the subsidiary company.
The Board shall appoint a Managing Director (MD) or Chief
3(1)(a) Executive Officer (CEO), a Company Secretary (CS), a Chief  - -
Financial Officer (CFO) and a Head of Internal Audit and
Compliance (HIAC);
The positions of the Managing Director (MD) or Chief
3(1)(b) Executive Officer (CEO), Company Secretary (CS), Chief  - -
Financial Officer (CFO) and a Head of Internal Audit and
Compliance (HIAC) shall be filled by different individuals;
The MD or CEO, CS, CFO and HIAC of a listed company
3(1)(c) shall not hold any executive position in any other company  - -
at the same time;
The Board shall clearly define respective roles,
3(1)(d) responsibilities and duties of the CFO, the HIAC and the  - -
CS;
The MD or CEO, CS, CFO and HIAC shall not be removed
3(1)(e) from their position without approval of the Board as well  - -
as immediate dissemination to the Commission and stock
exchange(s).
3(2) The MD or CEO, CS, CFO and HIAC of the company shall  - -
attend the meetings of the Board.
The MD or CEO and CFO shall certify to the Board that
3(3)(a) they have reviewed financial statements for the year and  - -
that to the best of their knowledge and belief:
129
Compliance Status
Title column)
No. any)
Not
Complied
Complied
These statements do not contain any materially untrue
3(3)(a)(i) statement or omit any material fact or contain statements  - -
that might be misleading;
These statements together present a true and fair view of
3(3)(a)(ii) the company’s affairs and are in compliance with existing - -

accounting standards and applicable laws;
The MD or CEO and CFO shall also certify that there are, to
the best of knowledge and belief, no transactions entered
3(3)(b) into by the company during the year which are fraudulent,  - -
illegal or violation of the code of conduct for the company’s
Board or its member;
The certification of the MD or CEO and CFO shall be
3(3)(c)  - -
disclosed in the Annual Report.
4(i) Audit Committee;  - -
The Company
is waiting for
4(ii) Nomination and Remuneration Committee. - -
Bangladesh Bank
reply
The company shall have an Audit Committee as a sub-
5(1)(a)  - -
committee of the Board;
The Audit Committee shall assist the Board in ensuring
that the financial statements reflect true and fair view of
5(1)(b)  - -
the state of affairs of the company and in ensuring a good
monitoring system within the business;
The Audit Committee shall be responsible to the Board;
5(1)(c) the duties of the Audit Committee shall be clearly set forth  - -
in writing.
The Audit Committee shall be composed of at least 3
5(2)(a)  - -
(three) members;
The Board shall appoint members of the Audit Committee
who shall be non-executive directors of the company
5(2)(b)  - -
excepting Chairperson of the Board and shall include at
least 1 (one) independent director;
All members of the audit committee should be “financially
literate” and at least 1 (one) member shall have accounting
5(2)(c)  - -
or related financial management background and 10 (ten)
years of such experience;
When the term of service of any Committee members
expires or there is any circumstance causing any
Committee member to be unable to hold office before
expiration of the term of service, thus making the
number of the Committee members to be lower than the  - -
5(2)(d) prescribed number of 3 (three) persons, the Board shall
appoint the new Committee member to fill up the vacancy
immediately or not later than 1 (one) month from the date
of vacancy in the Committee to ensure continuity of the
performance of work of the Audit Committee;
The company secretary shall act as the secretary of the
5(2)(e)  - -
Committee;
The quorum of the Audit Committee meeting shall not
5(2)(f)  - -
constitute without at least 1 (one) independent director.
The Board shall select 1 (one) member of the Audit
5(3)(a) Committee to be Chairperson of the Audit Committee,  - -
who shall be an independent director;
In the absence of the Chairperson of the Audit Committee,
the remaining members may elect one of themselves as
Chairperson for that particular meeting, in that case there
5(3)(b)  -
shall be no problem of constituting a quorum as required -
under condition No. 5(4)(b) and the reason of absence of the
regular Chairperson shall be duly recorded in the minutes.
130
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Compliance Status
Title column)
No. any)
Not
Complied
Complied
Chairperson of the Audit Committee shall remain present
5(3)(c)  - -
in the Annual General Meeting (AGM).
The Audit Committee shall conduct at least its four
meetings in a financial year: Provided that any emergency
5(4)(a)  - -
meeting in addition to regular meeting may be convened at
the request of any one of the members of the Committee;
The quorum of the meeting of the Audit Committee shall
be constituted in presence of either two members or two-
5(4)(b) third of the members of the Audit Committee, whichever  - -
is higher, where presence of an independent director is a
must.
The Audit Committee shall Oversee the financial reporting
5(5)(a)  - -
process;
5(5)(b) Monitor choice of accounting policies and principles;  - -
Monitor Internal Audit and Compliance process to ensure
that it is adequately resourced, including approval of the
5(5)(c)  - -
Internal Audit and Compliance Plan and review of the
Internal Audit and Compliance Report;
5(5)(d) Oversee hiring and performance of external auditors;  - -
Hold meeting with the external or statutory auditors
5(5)(e) for review of the annual financial statements before  - -
submission to the Board for approval or adoption;
Review along with the management, the annual financial
5(5)(f)  - -
statements before submission to the Board for approval;
Review along with the management, the quarterly and
5(5)(g) half yearly financial statements before submission to the  - -
Board for approval;
5(5)(h) Review the adequacy of internal audit function;  - -
Review the Management’s Discussion and Analysis before
5(5)(i)  - -
disclosing in the Annual Report;
Review statement of all related party transactions
5(5)(j)  - -
submitted by the management;
Review Management Letters or Letter of Internal Control
5(5)(k)  - -
weakness issued by statutory auditors;
Oversee the determination of audit fees based on scope
and magnitude, level of expertise deployed and time
5(5)(l)  - -
required for effective audit and evaluate the performance
of external auditors;
Oversee whether the proceeds raised through Initial
Public Offering (IPO) or Repeat Public Offering (RPO) or
5(5)(m) Rights Share Offer have been utilized as per the purposes - - N/A
stated in relevant offer document or prospectus approved
by the Commission:
The Audit Committee shall report on its activities to the
5(6)(a)(i)  - -
Board.
No such
5(6)(a)(ii)(a) Report on conflicts of interests; - -
incidence arose
suspected or presumed fraud or irregularity or material
5(6)(a)(ii)(b) defect identified in the internal audit and compliance - - -Do-
process or in the financial statements;
suspected infringement of laws, regulatory compliances
5(6)(a)(ii)(c) - - -Do-
including securities related laws, rules and regulations;
any other matter which the Audit Committee deems
5(6)(a)(ii)(d) - - -Do-
necessary shall be disclosed to the Board immediately;
131
Compliance Status
Title column)
No. any)
Not
Complied
Complied
If the Audit Committee has reported to the Board about
anything which has material impact on the financial
condition and results of operation and has discussed
with the Board and the management that any rectification
is necessary and if the Audit Committee finds that such No such
5(6)(b) - -
rectification has been unreasonably ignored, the Audit reportable
Committee shall report such finding to the Commission, incidence arose.
upon reporting of such matters to the Board for three
times or completion of a period of 6 (six) months from the
date of first reporting to the Board, whichever is earlier.
Report on activities carried out by the Audit Committee,
including any report made to the Board under condition
5(7) No. 5(6)(a)(ii) above during the year, shall be signed by the - - N/A
Chairperson of the Audit Committee and disclosed in the
annual report of the issuer company.
The Company
The company shall have a Nomination and Remuneration is waiting for
6(1)(a) - -
Committee (NRC) as a sub-committee of the Board; Bangladesh Bank
reply
The NRC shall assist the Board in formulation of the
nomination criteria or policy for determining qualifications,
positive attributes, experiences and independence of
6(1)(b) - - -Do-
directors and top level executive as well as a policy for
formal process of considering remuneration of directors,
top level executive;
The Terms of Reference (ToR) of the NRC shall be clearly
6(1)(c) set forth in writing covering the areas stated at the - - -Do-
condition No. 6(5)(b).
The Committee shall comprise of at least three members
6(2)(a) - - -Do-
including an independent director;
All members of the Committee shall be non-executive
6(2)(b) - - -Do-
directors;
Members of the Committee shall be nominated and
6(2)(c) - - -Do-
appointed by the Board;
The Board shall have authority to remove and appoint any
- - -Do-
6(2)(d) member of the Committee;
In case of death, resignation, disqualification, or removal
of any member of the Committee or in any other cases
6(2)(e) of vacancies, the board shall fill the vacancy within 180 - - -Do-
(one hundred eighty) days of occurring such vacancy in
the Committee;
The Chairperson of the Committee may appoint or co-
opt any external expert and/or member(s) of staff to the
6(2)(f) Committee as advisor who shall be non-voting member, - - -Do-
if the Chairperson feels that advice or suggestion from
such external expert and/or member(s) of staff shall be
required or valuable for the Committee;
The company secretary shall act as the secretary of the
6(2)(g) - - -Do-
Committee;
The quorum of the NRC meeting shall not constitute
6(2)(h) - - -Do-
without attendance of at least an independent director;
No member of the NRC shall receive, either directly
or indirectly, any remuneration for any advisory or
6(2)(i) - - -Do-
consultancy role or otherwise, other than Director’s fees
or honorarium from the company.
The Board shall select 1 (one) member of the NRC to
6(3)(a) be Chairperson of the Committee, who shall be an - - -Do-
independent director;
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a bank with vision
Compliance Status
Title column)
No. any)
Not
Complied
Complied
In the absence of the Chairperson of the NRC, the
The Company
remaining members may elect one of themselves as
is waiting for
6(3)(b) Chairperson for that particular meeting, the reason of - -
Bangladesh Bank
absence of the regular Chairperson shall be duly recorded
reply
in the minutes;
The Chairperson of the NRC shall attend the annual general
6(3)(c) - - -Do-
meeting (AGM) to answer the queries of the shareholders:
The NRC shall conduct at least one meeting in a financial
6(4)(a) - - -Do-
year;
The Chairperson of the NRC may convene any emergency
6(4)(b) - -Do-
meeting upon request by any member of the NRC; -
The quorum of the meeting of the NRC shall be constituted
in presence of either two members or two third of the
6(4)(c) members of the Committee, whichever is higher, where - - -Do-
presence of an independent director is must as required
under condition No. 6(2)(h);
The proceedings of each meeting of the NRC shall duly
6(4)(d) be recorded in the minutes and such minutes shall be - - -Do-
confirmed in the next meeting of the NRC.
NRC shall be independent and responsible or accountable
6(5)(a) - - -Do-
to the Board and to the shareholders;
NRC shall oversee, among others, the following matters
6(5)(b) - - -Do-
and make report with recommendation to the Board:
Formulating the criteria for determining qualifications,
positive attributes and independence of a director
6(5)(b)(i) and recommend a policy to the Board, relating to the - - -Do-
remuneration of the directors, top level executive,
considering the following:
The level and composition of remuneration is reasonable
6(5)(b)(i)(a) and sufficient to attract, retain and motivate suitable - - -Do-
directors to run the company successfully;
The relationship of remuneration to performance is clear
6(5)(b)(i)(b) - - -Do-
and meets appropriate performance benchmarks;
Remuneration to directors, top level executive involves a
balance between fixed and incentive pay reflecting short
6(5)(b)(i)(c) - - -Do-
and long-term performance objectives appropriate to the
working of the company and its goals;
Devising a policy on Board’s diversity taking into
6(5)(b)(ii) consideration age, gender, experience, ethnicity, - - -Do-
educational background and nationality;
Identifying persons who are qualified to become directors
and who may be appointed in top level executive position
6(5)(b)(iii) - - -Do-
in accordance with the criteria laid down, and recommend
their appointment and removal to the Board;
Formulating the criteria for evaluation of performance of
6(5)(b)(iv) - - -Do-
independent directors and the Board;
Identifying the company’s needs for employees at
6(5)(b)(v) different levels and determine their selection, transfer or - - -Do-
replacement and promotion criteria;
Developing, recommending and reviewing annually the
6(5)(b)(vi) - - -Do-
company’s human resources and training policies;
The company shall disclose the nomination and
remuneration policy and the evaluation criteria and
6(5)(c) - - -Do-
activities of NRC during the year at a glance in its annual
report.
7(1)(i) Appraisal or valuation services or fairness opinions;  - -
133
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Title column)
No. any)
Not
Complied
Complied
7(1)(ii) Financial information systems design and implementation;  - -
Book-keeping or other services related to the accounting
7(1)(iii)  - -
records or financial statements;
7(1)(iv) Broker-dealer services;  - -
7(1)(v) Actuarial services;  - -
7(1)(vi) Internal audit services or special audit services;  - -
7(1)(vii) Any services that the Audit Committee determines;  - -
Audit or certification services on compliance of corporate
7(1)(viii)  - -
governance as required under condition No. 9(1);
7(1)(ix) Any other service that creates conflict of interest.  - -
No partner or employees of the external audit firms
shall possess any share of the company they audit at
7(2) least during the tenure of their audit assignment of that - -

company; his or her family members also shall not hold
any shares in the said company:
Representative of external or statutory auditors shall
remain present in the Shareholders’ Meeting (Annual
7(3) - -
General Meeting or Extraordinary General Meeting) to 
answer the queries of the shareholders.
The company shall have an official website linked with the
8(1)  - -
website of the stock exchange.
The company shall keep the website functional from the
8(2)  - -
date of listing.
The company shall make available the detailed disclosures
8(3) on its website as required under the listing regulations of  - -
the concerned stock exchange(s).
The company shall obtain a certificate from a practicing
Professional Accountant or Secretary (Chartered
Accountant or Cost and Management Accountant or
Chartered Secretary) other than its statutory auditors
9(1)  - -
or audit firm on yearly basis regarding compliance
of conditions of Corporate Governance Code of the
Commission and shall such certificate shall be disclosed
in the Annual Report.
The professional who will provide the certificate on
compliance of this Corporate Governance Code shall
 -
9(2) be appointed by the shareholders in the annual general
meeting.
The directors of the company shall state, in accordance
with the Annexure-C attached, in the directors’ report
9(3)  - -
whether the company has complied with these conditions
or not.
134
a bank with vision
135
Compliance with Bangladesh Bank’s

Guidelines on Corporate Governance
Bangladesh Bank Guidelines for Corporate Governance: Our Status of
Compliance with BRPD Circular No.11 of 27th October 2013 vis-à-vis latest
amendment of law.
Sl. Compliance
Particulars Remarks
No. Status
1. Formation of Board of Directors
For appointment of new Directors and removal of Directors Bangladesh Bank’s

approval to be obtained.
Eligibility and Qualification of Directors, maximum number of Directors on the Board

of Directors.
Appointment of Independent Director. 
Maximum 4 Directors from one family. 
1.1 Appointment of New Directors
Section 15(4) of Bank Company Act 1991 (Amended upto 2018) requires that
application for obtaining approval of Bangladesh Bank to appoint new Directors 
should be sent along with some specified declarations and approval of Bangladesh
Securities and Exchange Commission.
1.2 Vacation of Office of Director
(a) Vacancy as per Section 108 (i) of Companies Act 1994 and Vacancy as per No Such
Section 17 of Bank Company Act 1991. Event
(b) Bar to become a Director who was removed by operation of Section 17 of Bank
-Do-
Company Act 1991.
Bar to transfer share by a Director who was removed by operation of Section
-Do-
17 of Bank Company Act 1991.
(c) Removal of Director and dissolution of the Board by Bangladesh Bank under
-Do-
section 46 and section 47 of Bank company Act 1991.
1.3 Removal of Directors from office
According to section 108(2) of the Companies Act, 1994, with the prior approval of
-Do-
Bangladesh Bank, a bank director other than specialized banks can be removed from
his office for the reason specified in its Articles of Association.
1.4 Appointment of Alternate Directors
(a) To appoint alternate director in place of original Director, Bank has to collect
and properly maintain the documentary evidences relating to departure and
arrival of the original director. If there is any exception, the chief executive
officer should immediately inform it to Bangladesh Bank.
(b) The copy of the decision of the board regarding appointment of alternate
director, with original director’s probable returning date from abroad should be
sent to Bangladesh Bank within 7 days of taking the decision and the director’s
arrival date must be intimated to Bangladesh Bank immediately after his return.
There is no
(c) Any loan defaulter or any person who is not eligible to become a director as per
Alternative
any rules & regulation will not be appointed as an alternate director.
Director on
(d) As appointment of alternate director is a temporary measure; therefore, he/she
the Board of
will not be included in any kind of committee constituted by the board.
SEBL
(e) While in the office, an alternate director or his/her affiliated organization
will not get any kind of loan facilities from his bank. In case of previous loan,
enhancement of limit or extension of time period or any kind of exemption
or interest waiver will not be allowed. Moreover, all restrictions applicable to
directors according to rules & regulations will also be applicable to the alternate
director.
All requirements of Law, Rules and Directives applicable to a Director are also
equally applicable to an Alternate Director.
136
a bank with vision
Sl. Compliance
Particulars Remarks
No. Status
2. Depositor Director
No Such
No requirement for appointment of Depositor Director. The tenure of office of
event
current Depositor Directors shall be determined by the Board.
3. Information regarding Directors
(a) Every bank should keep an updated list of bank directors, 
(b) Banks should send a directors’ list to other banks or financial institutions

immediately after the appointment or release of director.
(c) Banks should display a list of directors in the website and update it on a regular

basis.
4. Responsibility of the Board of Directors
Board of Directors is responsible for policy framing and implementation, Risk

Management, Internal Control, Internal Audit and ensuring compliance with Internal
Audit objections etc
4.1 Responsibilities and Authorities of the Board of Directors
(a) Work Planning and Strategic Management
i) Board shall determine Bank’s goals and objectives and devise strategies
and work plan. Progress towards achievement of work plan shall be reviewed 
quarterly by the Board.
ii) Board of Directors shall include its analytical/critical review of Bank’s
achievement and its failures in the Bank’s Annual Report. It shall also inform
the shareholders about the Bank’s future work plan and strategies. KPI(s) of 
CEO and two grades below the CEO shall be determined and evaluated by the
Board of Directors.
(b) Credit and Risk Management
i) The policies, strategies, procedures etc. in respect of appraisal of loan/
investment proposal, sanction, disbursement, recovery, reschedule and write-
off thereof shall be made with the board's approval under the purview of the
existing laws, rules and regulations. The board shall specifically distribute the

power of sanction of loan/investment and such distribution should desirably
be made among the CEO and his subordinate executives as much as possible.
No director, however, shall interfere, direct or indirect, into the process of loan
approval.
ii) The board shall frame policies for risk management and get them complied
with and shall monitor the compliance at quarterly rests and review the
concerned report of the risk management team and shall compile in the 
minutes of the board meeting. The board shall monitor the compliance of the
guidelines of Bangladesh Bank regarding key risk management.
(c) Internal Control Management
Board of Directors shall closely monitor Internal Control System in order to
maintain qualitative standard of Loan/Investment portfolio. Board of Directors
shall review on quarterly basis the reports of the Audit Committee submitted 
before it regarding compliance status of suggestions and recommendation of
inspection report of Internal Audit, External Auditors and Inspection Team of
Bangladesh Bank.
(d) Human Resources Management and Development
i) Policies relating to recruitment, promotion, transfer, disciplinary and punitive
measures, human resources development etc. and service rules shall be
framed and approved by the board. The chairman or the directors shall in no
way involve themselves or interfere into or influence over any administrative
affairs including recruitment, promotion, transfer and disciplinary measures as
executed under the set service rules. No member of the board of directors 
shall be included in the selection committees for recruitment and promotion to
different levels. Recruitment, promotion, transfer & punishment of the officers
immediate two tiers below the CEO shall, however, rest upon the board. Such
recruitment and promotion shall have to be carried out complying with the
service rules i.e., policies for recruitment and promotion.
137
Sl. Compliance
Particulars Remarks
No. Status
ii) The board shall focus its special attention to the development of skills of
bank's staff in different fields of its business activities including prudent appraisal
of loan/investment proposals, and to the adoption of modern electronic

and information technologies and the introduction of effective Management
Information System (MIS). The board shall get these programs incorporated in
its annual work plan.
iii) The board will compose Code of Ethics for every tier and they will follow it
properly. The board will promote healthy code of conducts for developing a 
compliance culture.
(e) Financial Management
i) The annual budget and the statutory financial statements shall be finalized
with the approval of the board. It shall at quarterly rests review/monitor the
positions in respect of bank's income, expenditure, liquidity, non-performing 
asset, capital base and adequacy, maintenance of loan loss provision and steps
taken for recovery of defaulted loans including legal measures.
ii) The board shall frame the policies and procedures for bank's purchase and
procurement activities and shall accordingly approve the distribution of power
for making such expenditures. The maximum possible delegation of such power
of expenditures shall rest on the CEO and his subordinates. The decision on 
matters relating to infrastructure development and purchase of land, building,
vehicles etc. for the purpose of bank's business shall, however, be adopted with
the approval of the board.
iii) Board of Directors shall review whether Asset-Liability Committee (ALCO) is
formed and functioning observing the directives of Bangladesh Bank 
(f ) Appointment of Chief Executive Officer (CEO)

Board of Director shall appoint an honest, efficient, experienced and a suitable

person as Chief Executive Officer. Appointment of CEO shall require Bangladesh
Bank’s approval.
(g) Other responsibilities of the Board
Board shall ensure proper execution and compliance with any duty vested 
upon it by Bangladesh Bank.
4.2 Meeting of Board of Directors
Board of directors may meet once or more than once in a month if necessary. But
Board of directors shall meet at least once in every three months. 
4.3 Responsibilities of Chairman of Board of Directors
(a) As the chairman of the board of directors or chairman of any committee formed
by the board or any director does not personally possess the jurisdiction to

apply policy making or executive authority, he/she shall not participate in or
interfere into the administrative or operational and routine affairs of the bank.
(b) The chairman may conduct on-site inspection of any bank-branch or financing
activities under the purview of the oversight responsibilities of the board. He
may call for any information relating to bank's operation or ask for investigation
into any such affairs; he may submit such information or investigation report to
the meeting of the board or the executive committee and if deemed necessary, 
with the approval of the board, he shall effect necessary action thereon in
accordance with the set rules through the CEO. However, any complaint against
the CEO shall have to be apprised to Bangladesh Bank through the board along
with the statement of the CEO.
(c) An Office Room, a personal Secretary / Assistant, one Peon / MLSS, Telephone
at the office, one Mobile Phone and a vehicle may be provided to the chairman 
with the approval of Board.
5. Formation of Committees from the Board of Directors
Every Bank Company shall constitute one Executive Committee, one Audit Committee
and one Risk Management Committee consisting of members of the Board of 
Directors.
138
a bank with vision
Sl. Compliance
Particulars Remarks
No. Status
5.1 Executive Committee
Executive committee should be formed with the members of the board to continue
the urgent and daily or routine works between the intervals of two board meetings. 
Executive committee will perform according to their terms of reference determined
by the board of directors.
(a) Organizational Structure:
i. Members of the committee will be nominated by the board of directors
from themselves;
ii. The executive committee will comprise of maximum 07 (seven) members;
iii. Members may be appointed for a 03 (three)-year term of office; 
iv. Chairman of the Board of Directors can be the chairman of executive
committee;
v. Company secretary of the bank will be the secretary of the executive
committee.
(b) Qualification of the Members:
i. Integrity, dedication, and opportunity to spare time in the functions of
committee will have to be considered while nominating a director to the
committee;
ii. Each member should be capable of making valuable and effective 
contributions in the functioning of the committee;
iii. To perform his or her role effectively each committee member should have
adequate understanding of the detailed responsibilities of the committee
membership as well as the bank's business, operations and its risks.
(c) Roles and Responsibilities of the Executive Committee:
i. The executive committee can decide or can act in those cases as instructed
by the Board of directors that are not specifically assigned on full board
through the Bank Company Act, 1991 and other laws and regulations.

ii. The executive committee can take all necessary decision or can approve
cases within power delegated by the board of directors.
iii. All decisions taken in the executive committee should be ratified in the next
board meeting.
(d) Meetings
i. The executive committee can sit any time as it may deem fit.
ii. The committee may invite Chief Executive Officer, Head of internal audit or
any other Officer to its meetings, if it deems necessary;

iii. To ensure active participation and contribution by the members, a detailed
memorandum should be distributed to committee members well in advance
before each meeting;
iv. All decisions/observations of the committee should be noted in minutes.
5.2 Audit Committee
The board will approve the objectives, strategies and overall business plans of
the bank and the audit committee will assist the board in fulfilling its oversight
responsibilities. The committee will review the financial reporting process, the 
system of internal control and management of financial risks, the audit process, and
the bank's process for monitoring compliance with laws and regulations and its own
code of business conduct.
(a) Organizational Structure
i. Members of the committee will be nominated by the board of directors
from the directors;
ii. The audit committee will comprise of maximum 05 (five) members, with
minimum 2 (two) independent director; 
iii. Audit committee will comprise with directors who are not executive
committee members;
iv. Members may be appointed for a 03 (three) year term of office;
v. Company secretary of the bank will be the secretary of the audit committee.
139
Sl. Compliance
Particulars Remarks
No. Status
(b) Qualification of the Member
i. Integrity, dedication, and opportunity to spare time in the functions of
committee;
ii. Each member should be capable of making valuable and effective

iii. To perform his or her role effectively each committee member should have
iv. Professionally Experienced persons in banking/financial institutions
specially having educational qualification in Finance, Banking, Management,
Economics, Accounting will get preference in forming the committee.
(c) Roles and Responsibilities of the Audit Committee
(i) Internal Control:
1. Evaluate whether management is setting the appropriate compliance culture
by communicating the importance of internal control and the management
of risk and ensuring that all employees have clear understanding of their
roles and responsibilities;
2. Review management’s actions in building computerization of the bank and
its applications and bank's Management Information System (MIS);

3. Consider whether internal control strategies recommended by internal and
external auditors have been implemented by the management;
4. Consider reports relating to fraud, forgery, deficiencies in internal control
or other similar issues detected by internal and external auditors and
inspectors of the regulatory authority and place it before the board after
reviewing whether necessary corrective measures have been taken by the
management.
(ii) Financial Reporting:
1. Audit committee will check whether the financial statements reflect the
complete and concrete information and determine whether the statements
are prepared according to existing rules & regulations and standards

enforced in the country and as per relevant prescribed accounting standards
set by Bangladesh Bank;
2. Discuss with management and the external auditors to review the financial
statements before its finalization.
(iii) Internal Audit:
1. Audit committee will monitor whether internal audit working independently
from the management.
2. Review the activities of the internal audit and the organizational structure
and ensure that no unjustified restriction or limitation hinders the internal 
audit process;
3. Examine the efficiency and effectiveness of internal audit function;
4. Examine whether the findings and recommendations made by the internal
auditors are duly considered by the management or not.
(iv) External Audit:
1. Review the performance of the external auditors and their audit reports;
2. Examine whether the findings and recommendations made by the external

auditors are duly considered by the management or not.
3. Make recommendations to the board regarding the appointment of the
external auditors.
(v) Compliance with existing Laws and Regulations:
Review whether the laws and regulations framed by the regulatory authorities

(central bank and other bodies) and internal regulations approved by the board
are being complied with.
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a bank with vision
Sl. Compliance
Particulars Remarks
No. Status
(vi) Other Responsibilities:
1. Submit compliance report to the board on quarterly basis on regularization
of the omission, fraud and forgeries and other irregularities detected by the
internal and external auditors and inspectors of regulatory authorities;

2. External and internal auditors will submit their related assessment report, if
the committee solicit;
3. Perform other oversight functions as desired by the Board of Directors and
evaluate the committee's own performance on a regular basis.
(d) Meetings
1. The audit committee should hold at least 4 meetings in a year and it can sit
any time as it may deems fit;
2. The committee may invite Chief Executive Officer, Head of internal audit or
any other Officer to its meetings, if it deems necessary; 
3. To ensure active participation and contribution by the members, a detailed
memorandum should be distributed to committee members well in advance
before each meeting;
4. All decisions/observations of the committee should be noted in minutes.
5.3 Risk Management Committee
Risk Management Committee shall be formed in order to play an effective role in
lowering possible risks in respect of implementation of strategies and work-plan
formulated by Board of Directors. Risk Management Committee shall analyze the
policy/system of lowering risks properly by the management and maintenance of 
required capital against Risks and Provision for Reserve for Credit Risk, Foreign
Exchange Risk, Internal Control and Compliance Risk, Money Laundering Risk,
Information and Communication Technology Risk, Operational Risk, Interest Rate
Risk, Liquidity Risk etc. shall be looked after by the Risk Management Committee.
(a) Organizational Structure:
1. Members of the committee will be nominated by the board of directors
from themselves;
2. The Risk Management Committee will comprise of maximum 05 (five)

members;
3. Members may be appointed for a 03 (three) year term of office;
4. Company secretary of the bank will be the secretary of the Risk Management
Committee.
(b) Qualifications of the Member:
1. Integrity, dedication, and opportunity to spare time in the functions of
committee;
2. Each member should be capable of making valuable and effective 
3. To perform his or her role effectively each committee member should have
(c) Roles and Responsibilities of the Risk Management Committee:
(i) Risk Identification and Control policy:
Formulation and implementation of appropriate strategies for risk assessment
and its control is the responsibility of Risk Management Committee. Risk 
Management Committee will monitor risk management policies & methods and
amend it if necessary. The committee will review the risk management process
to ensure effective prevention and control measures.
(ii) Construction of Organizational Structures
The responsibility of Risk Management Committee is to ensure an adequate
organizational structure for managing risk within the bank. The Risk Management
Committee will supervise formation of separate management level committees

and monitor their activities for the compliance of instructions of lending risk,
foreign exchange transaction risk, internal control & compliance risk, money
laundering risk, information & communication risk including other risk related
guidelines.
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Sl. Compliance
Particulars Remarks
No. Status
(iii) Analysis and approval of Risk Management Policy
Risk management policies & guidelines of the bank should be reviewed annually
by the committee. The committee will propose amendments if necessary

and send it to the Board of Directors for their approval. Besides, other limits
including lending limit should be reviewed at least once annually and should be
amended, if necessary.
(iv) Storage of data & Reporting system:
Adequate record keeping & reporting system developed by the bank
management will be approved by the risk management committee. The

committee will ensure proper use of the system. The committee will minute its
proposal, suggestions & summary in a specific format & inform the Board of
Directors.
(v) Monitoring the implementation of overall Risk Management Policy:
Risk Management Committee will monitor proper implementation of overall risk

management policies. They will monitor whether proper steps have been taken
to mitigate all risks including lending risk, market risk, and management risk.
(vi) Other responsibilities:
1. Committee’s decision and suggestions should be submitted to the Board of
Directors quarterly in short form;

2. Comply instructions issued time to time by the controlling body;
3. Internal & external auditor will submit respective evaluation report whenever
required by the committee.
(d) Meetings:
1. The risk management committee should hold at least 4 meetings in a year
and it can sit any time as it may deems fit;
2. The committee may invite Chief Executive Officer, Chief Risk Officer and any
other Officer to its meetings, if it deems necessary; 
3. To ensure active participation and contribution by the members, a detailed
memorandum should be distributed to committee members well in
advance before each meeting;
4. All decisions/observations of the committee should be noted in minutes.
6. Training of Directors
The directors shall make themselves fully aware of the banking laws and other related 
rules and regulations for performing his duties properly.
7. This Circular is issued to implement Section 15, 15 Kha and 15 Ga of Bank Company
- -
Act, 1991 (Amended up to 2018) .
8. Enforcement of the Circular. With
- immediate
effect
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BRPD Circular No.18 of 27th October 2013 and BRPD Circular Letter No.20
dated 23rd December, 2014 and subsequent amendment regarding
Appointment and responsibilities of Chief Executive Officer (CEO)
Sl. Compliance
Particulars
No. Status
A Rules and regulations for appointing CEO
1 Moral Integrity:
In case of appointment to the post of CEO, satisfaction in respect of the concerned person should
be ensured to the effects that: Complied
a) He has not been convicted by any Criminal Court of Law.
b) He has not been punished for violating any rules, regulations or procedures / norms set by any
regulatory authority;
c) He was not associated with any such company/organization registration or license of which has
been cancelled.
2 Experience and Suitability:
a) For appointment as a CEO, the concerned person must have experience in banking profession
for at least 15 (fifteen) years as an active officer and at least 2 (two) years experience in a post
immediate below the CEO of a bank.
b) He must at least have a Masters Degree from any recognized university. Higher academic
education in the field of Economics, Banking and Finance or Business Administration will be
treated as additional qualification for the concerned person.
c) In respect of service, the concerned person should have excellent record of performance.
d) Satisfaction should be ensured that the concerned person was not dismissed from service
when he was chairman/director/official of any company. Complied
e) Any director of any bank or financial institution or any person who has business interest in the
concerned bank will not be eligible for appointment to the post of CEO.
3 Transparency and financial integrity: Before appointment as a CEO, satisfaction should be
ensured to the effects that:
a) The concerned person was not involved in any illegal activity while performing duties in his own
or banking profession.
Complied
b) He has not suspended payment to creditors or has not compromised with his creditors to be
relieved from debt or he is not a loan defaulter;
c) He is not a tax defaulter.
d) He has never been adjudicated an insolvent
4 Age Limit: No person crossing the age of 65 years shall hold the post of CEO of a Bank. Complied
5 Tenure: The tenure of the CEO shall not be more than 03 (three) years, which is renewable. If the
candidate has less than 3 years left to attain 65 years, he/she can be appointed for the shorter Complied
period.
6 Guidelines in fixing the salary and allowance: Banks are required to follow the guidelines stated
below while determining the salary and allowances of the CEO and submitting such proposals to
Bangladesh Bank.
a) In fixing the salary and allowances of the CEO, financial condition, scope of operation, business-
volume and earning capacity of the Bank; qualifications, achievement of the candidate in the
past, age and experience and the remuneration paid to the persons occupying same position
in the peer banks shall have to be taken into consideration.
Complied
b) Total salary shall be comprised of direct salary covering ‘Basic Salary’ and ‘House Rent’ and
allowances as ‘Others’. The allowances (e.g., provident fund, utility bill, leave-fare assistance) in
‘Others’ head should be specified in amount/ceiling. Besides, other facilities (e.g., car, fuel, driver
etc), as far as possible, shall have to be converted in the monetary value and thus determining
monthly total salary, it shall have to be mentioned in the proposal submitted to BB. In the
proposal, Basic Salary, House Rent, Festival Allowance, other allowances and other facilities
shall have to be specified in Taka amount.
143
Sl. Compliance
Particulars
No. Status
c) Without improving the bank’s major financial indicator like-CAMELS, annual salary increment will
not be payable.
d) Terms of salary-allowances and other facilities as specified in the terms and conditions of
appointment cannot be changed during the tenure. In case of renewal, proposal may be made
for re-fixation of the salary considering the work performance of the current CEO. Complied
e) The CEO so appointed shall not get any other direct or indirect facilities (e.g., dividend, commission,
club expenses, etc.) other than the salary-allowances and other facilities as enumerated in
clause (b) above.
f)The bank shall not pay any income tax for the CEO, i.e. the CEO so appointed shall have to pay it.
7 Incentive Bonus: The CEO will get incentive bonus subject to paying incentive bonus to all executives/
Complied
officers/workers of the bank and the said bonus amount will not exceed BDT 1,000,000 in a year.
8 Honorarium for attending the Board Meeting: Being a salaried executive, CEO will not get any
Complied
honorarium for attending the Board meeting or the meeting of any committee formed by the Board
9 Evaluation Report: For reappointment of the CEO, the Chairman of the bank shall have to submit
Complied
a Board approved evaluation report to Bangladesh Bank.
10 Prior Approval from Bangladesh Bank: Prior approval from Bangladesh Bank is mandatory
before appointing CEO as per section 15(4) & (5) of Bank Company Act 1991 (amended up to 2018).
For processing such approval, along with the proposal signed by the Chairman of the BoD, the
Complied
selected person’s complete resume, offer letter (mentioning the direct & indirect remuneration and
facilities) and copy of Board’s approval must be submitted to BB. The selected person must also
submit declarations as per Annexure A & Annexure B to BB.
11 Decision of Bangladesh Bank is final: The decision of BB for appointment of the CEO will be
treated as final and the CEO so appointed cannot be terminated, released or removed from his/her
office without prior approval from BB.
a) In case the CEO desires to terminate the contract before expiry or resign from his office
voluntarily, he shall serve at least one-month notice upon the Chairman of the Board stating
the actual reason for such resignation, and, at the same time forward a copy of such notice
to Bangladesh Bank.
b) In case the Board of the Bank desires to terminate the contract before expiry or asks the No such
CEO to tender resignation from his post, the Board shall serve at least one-month notice event
stating the reasons for such action; at the same time forward a copy of such notice to
Bangladesh Bank and obtain approval of Bangladesh Bank for such removal.
c) When the position of the CEO falls vacant due to resignation, expiry of contract, or any other
reason, the bank shall immediately appoint a ‘CEO In-charge’ (for maximum 3 months)
among the officials next to the CEO and notify Bangladesh Bank with details of such Officer
In-charge.
B Duties and Responsibilities of CEO:
The CEO of the bank, by whatever name called, shall discharge the responsibilities and affect the
authorities as follows:
a) In terms of the financial, business and administrative authorities vested upon him by the Board,
the CEO shall discharge his own responsibilities. He shall remain accountable for achievement
of financial and other business targets by means of business plan, efficient implementation
thereof and prudent administrative and financial management.
b) The CEO shall ensure compliance of the Bank Company Act 1991 and other relevant laws and
regulations in discharging routine functions of the bank.
c) At the time of presenting any memorandum in the Board Meeting or Board Committee Meeting,
the CEO must point out if there is any deviation from the Bank Company Act, 1991 and other
relevant laws and regulations.
d) The CEO shall report to Bangladesh Bank any violation of the Bank Company Act, 1991 or of Complied
other laws/regulations.
e) The recruitment and promotion of all staffs of the bank except those in the two tiers below him/
her shall rest on the CEO. He/she shall act in such cases in accordance with the approved service
rules on the basis of the human resources policy and sancetioned strangth of employees as
approved by the board.
f) The authority relating to transfer of and disciplinary measures against the staff, except those at
two tiers below the CEO, shall rest on him/her, which he/she shall apply in accordance with the
approved service rules. Besides, under the purview of the human resources policy as approved
by the Board, he/she shall nominate officers for training, etc.
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a bank with vision
Status of compliance with the conditions imposed by Bangladesh Bank BRPD

Circular Letter No.19 dated 27 October 2013 on Contractual appointment of
Advisor and Consultant.
Sl Compliance
Particulars Remarks
No. Status
A Appointment of Advisor
1. Experience and Suitability
For appointment as advisor, the concerned person will have to fulfill the following
requirements with regard to experience and qualifications:
a) Experience in Banking or Administration for at least 15 (fifteen) years or have
a long experience in social activities;
b) Higher academic education in the field of Economics, Banking and Finance
or Business Administration will be treated as additional qualification for the
concerned person;
Complied
c) Satisfaction should be ensured that the concerned person was not dismissed
from his service when he was Chairman/Director/Official of any company;
d) A person who is working in any bank or financial institution or who has
business interest in that bank will not be considered eligible for appointment
to the post of advisor;
e) Satisfaction should be ensured that the concerned person is not a loan
defaulter or tax defaulter and has never been adjudicated an insolvent by
the court.
2. Responsibilities of the Advisor
The Advisor can advise the Board of Directors or the Chief Executive only on
those matters that are specified in the appointment letter. Routine works or Complied
general works will not be included in his term of reference. He can’t exercise
any kind of power or can’t participate in the decision making process of financial,
administrative, operational or any other activities of the bank.
3. Prior approval from Bangladesh Bank
Prior approval from Bangladesh Bank is mandatory before appointing advisor.
For such appointment, the justifications of the post of advisor, responsibilities
or terms of reference, complete resume of the concerned person, terms of Complied
appointment (mentioning remuneration and facilities) and copy of board’s
approval must be submitted to Bangladesh Bank. The nominated person has to
make a declaration as per Annexure-ka. This declaration must be also submitted
to Bangladesh Bank.
4. Remuneration and other facilities of Advisor
The post of advisor is not a fixed or substantive post in the bank’s organisation
structure. Advisor will not be entitled to salaries and allowances as regular Complied
employee except gross amount of remuneration, transport and telephone
facilities. Remunerations inconsistent with terms of reference of the advisor will
not be considered as acceptable by Bangladesh Bank.
5. Tenure of Advisor
Complied
The tenure of the Advisor shall be maximum 01(one) year which is renewable.
6. Appointment of former executive
For ensuring good governance, any former Director, CEO or any other Executive Complied
of the bank will not be eligible to become an Advisor in the same bank immediately
after his/her retirement or resignation.
145
Sl Compliance
Particulars Remarks
No. Status
B Appointment of Consultant
1. Terms of reference of Consultant
Consultant can be appointed for specialized tasks like tax, law and legal
procedures, engineering and technical works, information technology, etc. N/A
Consultants’ appointment should be avoided as much as possible for those
works that could be done by regular employees of the Bank
2. Responsibilities of a Consultant
The responsibilities or terms of reference of a Consultant are specified. He does N/A
not involve in any activities beyond his terms of references
3. Appointment of a Consultant
No
A Consultant can be appointed with the approval of the BoD. After such N/A Consultant
appointment, the bank shall send the Consultant’s complete resume, terms of in office
reference and details of remuneration to Bangladesh Bank immediately as on 31st
4. Tenure of a Consultant December,
N/A 2018
The tenure of a Consultant should be consistent with the terms of reference but
would not exceed 02 (two) years
5. Remuneration/honorarium of a Consultant
The consultant’s remuneration should be in the form of monthly or single lump- N/A
sum payment, he is not entitled to any other facilities.
6. Appointment of former executive
For ensuring good governance, any former Director, CEO or any other Executive N/A
of the bank will not be eligible to appointment as a Consultant in the same bank
immediately after his/her retirement or resignation.
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a bank with vision
Certificate of Senior Management Team

(SMT) regarding the Effectiveness of Internal
Control Policy, Practice and Procedure
Internal Control is a process accomplished by the Board of Directors, Senior Management and personnel
at all levels. It is not solely a procedure or policy that is performed at a certain point of time, rather it
is continually operating at all levels within the Bank. As per guidelines of Bangladesh Bank the Board of
Directors and Senior Management are required to take appropriate steps for establishing appropriate
culture to facilitate an effective internal control process and for monitoring its effectiveness on an ongoing
basis; however, each individual within an organization must participate in the process.
The SMT received an updated "Review Report on the Risk Management of Internal Control and Compliance
of the Bank" and reviewed the internal control mechanism in place and different issues on risk management
of Internal Control and Compliance, e.g Appropriateness & Effectiveness of Internal Control Environment;
Internal Control Objective; Internal Control Policy Guidelines; Organization Structure; Process Guidelines
and Internal Control Process of the Bank. The Committee also reviewed the key points of Bangladesh Bank's
last Inspection Report on ICC of the Bank alongwith the Bank's Compliance thereof.
The SMT is satisfied that lntenal Control Policy, Practice and Procedure of the Bank are effective and
provide a reasonable assurance in achieving objectives of the Bank in respect of (i) reliability of the financial
information; (ii) effectiveness and efficiency of operations; (iii) compliance with applicable laws and regulations;
(iv) adherence to management policies; (v) safeguarding of Bank's Assets; (vi) prevention and detection of
fraud and errors; and (vii) accuracy and completeness of the accounting records. However, internal control
environment of the Bank has further been strengthened after implementation of the processes as mentioned
in the revised "Guidelines on Internal Control and Compliance in Banks" provided by Bangladesh Bank vide
BRPD Circular No.03 dated 08.03.2016 and an amendment of the guideline through BRPD Circular No-04
dated 04.09.2016..
M. Kamal Hossain
Managing Director
147
Report of the Audit Committee

(Composition, Role, Meetings, Attendance etc.)
and Internal Control
The Audit Committee is an important functional Committee of the Board
of Directors of the Bank. It is assigned with oversight of financial reporting,
disclosure, regulatory compliance and disciplined banking operation
complying with the rules and norms of banking.
Feature and Composition
The Audit Committee was last re-constituted by the Board of Directors in its 548th meeting held on July 25,
2018 in accordance with the Corporate Governance Code issued by BSEC on June 03, 2018 and Bangladesh
Bank’s BRPD circular no. 11, dated October 27, 2013.
The composition of the present members of the Audit Committee in 2018 is given below:
Sl. Status in the Status in the

Name Educational Qualification
No. Board Committee
1. Mr. Syed Sajedul Karim Independent Chairman MA BA (Hons)
Director
2. Mrs. Duluma Ahmed Director Member Graduate
3. Mrs. Jusna Ara Kashem Director Member H.S.C
4. Mrs. Rehana Rahman Director Member Graduate
5. Dr. Quazi Mesbahuddin Ahmed Independent Member B.A (Hons), M.A., MEC, MSC.,
Director Phd in Economics
Note: Mr. Syed Sajedul Karim was elected in the 23rd AGM, held on 30 June, 2018.
Quorum Terms of Reference of the Audit

Committee
Presence of 3 (three) members constitutes a
quorum for holding Audit Committee meeting. The i. Board shall appoint non-executive directors of
Head of Internal Control and Compliance attended the Bank as members of the Audit Committee
the meetings to present the agenda. On invitation, excepting Chairman of the Board.
Senior Executives of the Bank including the Managing
Director, Chief Financial Officer (CFO) and Head of ii. Mr. Syed Sajedul Karim, in his capacity as the
Risk Management Division attended the meetings Independent Director, shall be the Chairman of
to meet instant queries of the Audit Committee to the Audit Committee.
make its decisions fact-based. In addition, Heads of
Branches, whose audit reports were placed to the iii. Presence of 03 (three) members shall form a
Audit Committee were also present in the meetings quorum.
to respond to the issues raised in the reports of
Internal Control and Compliance Division and iv. The quorum of the Audit Committee meeting
Bangladesh Bank. shall require presence of at least 1 (one)
Independent Director.
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a bank with vision
v. The tenure of office of the Audit Committee i. Overseeing the financial reporting process.
shall be for 3 years. ii. Monitoring choice of accounting policies and
principles.
vi. The Company Secretary shall act as Secretary to iii. Monitoring Internal Audit and Compliance
the Audit Committee. process including approval of Internal Audit
and compliance plan.
vii. The terms of reference of the Audit Committee
iv. Reviewing the Internal Audit and Compliance
shall also be as specified in the BRPD Circular
Report.
No.11 dated October 27, 2013 of Bangladesh
Bank and provisions contained in Notification v. Overseeing hiring and performance of external
No.BSEC/CMRRCD/2006-158/207/Admin/80 auditors.
of Bangladesh Securities and Exchange vi. Reviewing the Annual Financial Statements
Commission (BSEC), dated 03 June, 2018. before submission to the Board for approval
or adoption.
viii. Mr. Zakir Ahmed Khan, Advisor of the Bank, shall vii. Reviewing the quarterly and half-yearly
remain present in every meeting of the Audit Financial Statements before submission to the
Committee as far as possible and shall give his Board for approval.
advice and suggestions for improvement of viii. Reviewing the financial statements, in particular
Bank’s operations and strict compliance with the investments made by the subsidiary
rules of both the Bank and its regulators. company.
ix. Reviewing the adequacy of internal audit
ix. Chairman of the Audit Committee shall remain functions.
present in the Annual General Meeting (AGM).
x. Reviewing the Management’s Discussion and
Analysis before disclosing in the Annual Report
Charter of the Audit Committee
xi. Overseeing the determination of audit fees
The Audit Committee is constituted by the Board of based on scope and magnitude, level of
Directors for the primary purpose of assisting the expertise deployed and time required for
Board in: effective audit and evaluate the performance
of external auditors.
xii. Reviewing statement of significant party
Overseeing the integrity of the company’s
transactions submitted by the management.
financial statement.
xiii. Reviewing Management Letters/ Letter of
Overseeing the improvement of corporate Internal Control Weakness issued by Statutory
governance standard of the company. Auditors.
Overseeing the Company’s system of disclosure, xiv. Reviewing the existing Risk Management Policy
internal controls and procedure. and procedures to improve the quality of
Overseeing Bank’s internal control over financial Bank’s assets portfolio.
reporting. xv. Reviewing fund raising through Repeat
Public Offering/ Rights Issue and its use and
Overseeing Bank’s compliance with ethical
application.
standards adopted by the Bank.
xvi. Monitoring internal control process.
Making reports and recommendations to the
xvii. Maintaining oversight on regulatory
Board.
compliance, ethics and whistle-blower hotlines.
xviii. Reviewing Audit Committee’s own terms of
Roles and Responsibilities
reference.
The role of Audit Committee is to assist the Board xix. Reviewing the compliance status of the Minutes
in discharging its duties and responsibilities for of the Audit Committee Meeting.
financial reporting, effective monitoring, corporate
governance, internal control, green banking and Reporting of the Audit Committee
environmental & climate change risks. The added
roles of the Audit Committee include, but not limited The Audit Committee has reported its findings and
to, the following: observations to the Board of Directors. It is also
149
required to report to the Bangladesh Securities adjustment and turning them into performing
and Exchange Commission on anything which has loans. The Committee also advised to obtain
material impact on the financial condition and additional collateral against the loan where
result of operation of the Bank. But such reporting there is no collateral or inadequate collateral on
was not necessitated in 2018 as nothing which best effort basis to safeguard Bank’s interest.
has/had material impact on the financial condition
and results of operation had occurred in the Bank ix. The Committee reviewed the Bank’s Self
during the year 2018. Assessment of Anti-Fraud Internal Controls
and advised to adhere to guidance-notes of
Bangladesh Bank to avert attempts of frauds
Deliberations of the Audit Committee
and forgeries in the Bank.
in 2018
x. The Audit Committee reviewed periodic
During the year 2018, the Audit Committee carried recovery positions of the Bank against classified,
out its regular functions on areas pertaining to its re-scheduled and written-off loans and gave
responsibilities. Some of the issues that it discussed suitable decisions.
and the decisions it took for improvement of
operational performance of the Bank are listed below: xi. The Audit Committee examined the certificate of
the Senior Management Team (SMT) regarding
i. The Audit Committee reviewed the Financial the effectiveness of Internal Control, Policy,
Statements of the Bank for the year-2018 which Practice and Procedures.
include Balance Sheet, Profit and Loss Account,
Statement of Changes in Equity, Cash Flow xii. The Audit Committee reviewed the Integrated
Statement and the disclosures made through Health Report of the Bank for the year 2018 and
Notes to the Accounts. referred it to the Board of Directors for approval.
The Committee advised the Management to
ii. The Committee recommended the approval conduct the operations of the Bank in such a
of the Financial Statements of the Bank for the way that Bank’s financial health, ICC health, and
year 2018 to the Board. Image and Reputational health are improved
significantly.
iii. The Committee recommended appointment of
bank’s external auditors for the year 2018. Report to the Board
iv. The Committee advised the Management to All findings and decisions of the Audit Committee
vigorously monitor the risk assets of the Bank were reported to the Board and the Board closely
especially the loans in different branches that reviewed and ratified them.
showed signs of weakness for their timely
recovery and adjustment. Minutes of Audit Committee to
v. The Audit Committee approved Inspection Plan Bangladesh Bank
of the Bank for the year 2018.
The minutes of meetings of the Audit Committee
vi. The Audit Committee reviewed the un-audited were sent to Bangladesh Bank for their information.
quarterly and half yearly financial statements
before their submission to the Board for final Reporting to the Regulatory Authorities
review and approval.
There had not been any occurrence in the Bank that
vii. The Audit Committee thoroughly reviewed the required reporting to the relevant authorities by the
findings of the Bangladesh Bank Inspection Bank’s Audit Committee.
Team on different branches and instructed
management to take appropriate actions to
prevent repetition of lapses identified in their
inspection reports.
viii. The Audit Committee reviewed the Annual

Summary Report on Audit Findings-2018 and Syed Sajedul Karim
advised for strong monitoring of non-performing Chairman
loans of different branches for their timely Audit Committee of the Board
150
a bank with vision
Internal Control
and Compliance
The internal control process has become more extensive, addressing all the
various risks faced by banking organization. It is recognized that a sound
internal control process is critical to a bank’s ability to meet its established
goals and to maintain its financial viability. The BoD’s Audit Committee of
Southeast Bank Limited (SEBL) carried out its responsibilities diligently to
ensure effective functioning of the following five interrelated elements of
internal control :
Management Risk Control Information Monitoring

oversight and recognition activities and and activities and
the control and segregation of communicat correcting
culture; assessment; duties; ion; and deficiencies
The members of Audit Committee have adequate within the bank recognizes the need to carry out his
knowledge of financial reporting and internal responsibilities effectively and to communicate to the
controls and the Audit Committee on behalf of the appropriate level of management for any problems
BoD of SEBL performs the essential activities to in operations, instances of non-compliance with the
make sure that an adequate and effective system code of conduct, or other policy violations or illegal
of internal controls is established and maintained actions that are noticed.
within the bank. These activities includes (a) periodic
discussions with management concerning the The assessment and continuous evaluation of the
effectiveness of the internal control system; (b) a risks, that could adversely affect the achievement
timely review of evaluations of internal controls of bank’s objectives, are conducted at the level of
made by management, internal auditors, and individual business and across the wide spectrum
external auditors; (c) periodic efforts to ensure of activities including subsidiaries. The bank also
that management has appropriately followed up evaluates whether to accept those risks or the
on recommendations and concerns expressed by extent to which it wishes to mitigate the risks
auditors and supervisory authorities on internal through control procedure or to withdraw from
control weaknesses; and (d) a periodic review of the or reduce the level of business activity concerned.
appropriateness of the bank’s strategy and risk limits. SEBL has established an appropriate control
structure with control activities defined at every
Senior Management of SEBL carries out the directives business level and these control activities are an
of BoD and has established a well documented integral part of its daily operation. SEBL also has an
organizational structure that clearly shows lines of effective information and communication system
reporting responsibility and authority and provides that provides reliable and timely information in a
for effective communication throughout the bank. consistent format. The overall effectiveness of its
The words, attitudes and actions of the BoD and internal controls is monitored on an ongoing basis.
Senior Management in their business dealings, both Monitoring of key risks is part of bank’s daily activities
inside and outside the bank display the ethical values, and it is evaluated periodically by the business lines
integrity and control culture. Everyone at all levels and internal audit.
151
Report of the
Risk Management Committee
The Bank Company Act-1991 (Amended up to 2018), inter alia, provided for
constitution of a Risk Management Committee of the Board of Directors
of every Bank. The committee will scrutinize whether appropriate risk
management measures are being put in place and applied and whether
adequate capital and provision is being maintained against different risks.
Feature and Composition
The Risk Management Committee was reconstituted by the Board of Directors in its 548th meeting held on
July 25, 2018 in accordance with the BRPD circular no. 11, dated October 27, 2013 issued by Bangladesh
Bank. The composition of the Risk Management Committee in 2018 is given below:
Sl. Name Status with the Bank Status with the Committee
1 Mr. Alamgir Kabir, FCA Chairman Chairman
2 Mr. M. A. Kashem Director Member
3 Mr. Azim Uddin Ahmed Director Member
4 Mr. Syed Sajedul Karim Independent Director Member
Note: Mr. Syed Sajedul Karim was elected in the 23rd AGM held on June 30, 2018.
Structure of the Risk Management c. Ensuring construction of adequate

Committee organizational structure for managing risks
within the Bank.
1. The Chairman of the Board of Directors of d. Supervising the activities of Executive Risk
the Bank shall be the Chairman of the Risk Management Committee (ERMC).
Management Committee. e. Ensuring compliance of Bangladesh Bank
2. Presence of 3 (three) members in a meeting of instructions regarding implementation of core
the Committee shall form quorum. risk management.
3. The Company Secretary of the Bank shall act f. Ensuring formulation and review of risk appetite,
as the Secretary to the Risk Management limits and recommending these to Board of
Committee of the Board. Directors for their review and approval.
g. Approving adequate record keeping and
Functions of the Risk Management reporting system and ensuring its proper use.
Committee h. Holding at least four meetings in a year and
more if deemed necessary.
a. Formulating and reviewing risk management i. Submitting proposal, suggestions & summary
policies and strategies for sound risk of BRMC meetings to the Board of Directors at
management. least on quarterly basis.
b. Monitoring implementation of risk management j. Complying with instructions issued from time
policies and process to ensure effective to time by the regulatory body.
prevention and control measures.
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a bank with vision
k. Analyzing all existing and probable risk issues in g. Asset Liability Management (ALM) Manual
the meeting and taking appropriate decisions (policy statement), Contingency Funding Plan
for risk mitigation. (CFP), Wholesale Borrowing and Lending
Guideline, Swapped Fund Guideline.
l. Ensuring sufficient and efficient staff resources
for RMD. h. Foreign Exchange Risk Management
Manual.
m. Establishing standards of ethics and integrity for
staff and enforcing these standards.
6. Advised the management to regularly monitor
Bank’s Large Loans to protect Bank’s exposure.
Deliberation of the Risk Management
Committee in 2018
7. Advised the management to strictly follow
During the year 2018, the main issues the the single borrower exposure limit as per the
committee discussed and the decisions it took for guidelines of Bangladesh Bank.
improvement of risk management scenario in the
Bank are enumerated below: 8. Advised the management to monitor the Non
Performing Loans of the Bank constantly to
bring those back to performing status.
1. Quarterly reviewed the report on Risk
Management Activities and Minimum Capital
Reporting to the Board
Requirement (MCR) of the Bank.
2. Periodically reviewed the Bank’s Stress Testing The decisions and recommendations of the Risk
report. Management Committee were submitted before the
3. Periodically reviewed the Bank’s Capital mix. Board of Directors and the Board closely reviewed
and ratified them.
4. Reviewed the ICAAP report under Supervisory
Review Process. Submitting Minutes of Risk Management
5. Reviewed the following policies and guidelines Committee to Bangladesh Bank
of the Bank:
a. Risk management guidelines. The minutes of meetings of the Risk Management
Committee were submitted to Bangladesh Bank for
b. Policy on Supervisory Review Process and their information.
ICAAP Methodology.
c. Credit Risk Management guidelines.
d. Manual on Internal Control and Compliance.
e. ICT Security Policy. Alamgir Kabir, FCA
f. SEBL Manual for Preventing the Risk of Chairman
Money Laundering and Terrorist Financing. Risk Management Committee of the Board
153
Evaluation of the Quarterly Financials by

the Audit Committee and by the Board
As per the regulatory requirement of Bangladesh Securities and Exchange
Commission (BSEC), Bank has prepared and presented Quarter Ended
Financial Statements. These statements are prepared in accordance
with BAS (Bangladesh Accounting Standards). The statements are sent to
Audit committee for review. After reviewing by the Audit Committee and
approval by the Board, the statements are finally submitted to Bangladesh
Securities and Exchange Commission (BSEC). Afterwards, the Quarter
Ended Financial Statements are published in several daily newspapers.
The statement is also published in the website of the bank.
BDT In Million
2018 2017 2018 2017 2018 2017 2018 2017
1 Jan 1 Jan 1 Jan 1 Jan
Particulars 1 Jan'18 1 Jan'17 1 Jan '18 1 Jan '17
'18 to '17 to '18 to '17 to
to 31 to 31 to 30 to 30
30 Sep 30 Sep 31 Mar 31 Mar
Dec'18 Dec'17 June '18 June '17
'18 '17 '18 '17
4th Qtr. 4th Qtr. 3rd Qtr. 3rd Qtr. 2nd Qtr. 2nd Qtr. 1st Qtr. 1st Qtr.
Balance Sheet - - - - - -
Cash 21,515 20,979 19,563 19,483 22,072 18,900 20,751 18,466
Money at call and on short notice 6,897 3,644 5,046 1,304 6,468 293 8,415 4,857
Loans and advances/investments 267,672 234,317 260,018 217,746 257,314 206,957 243,102 197,693
Fixed assets including premises, furniture and
9,337 9,322 9,309 9,349 9,342 9,375 9,278 8,947
fixtures
Other assets 4,110 3,836 4,172 3,754 3,790 3,461 3,562 2,905
Total assets 381,576 339,288 366,987 315,651 367,868 303,831 352,903 300,178
Borrowings from other banks, financial institutions
11,212 10,182 11,014 9,708 14,531 10,669 10,909 8,277
and agents
Subordinated bond 11,800 7,400 12,400 8,000 7,400 8,000 7,400 8,000
Deposits and other accounts 289,335 269,828 284,057 248,101 288,782 237,870 280,914 234,976
Other liabilities 32,102 26,045 31,247 22,922 29,887 21,509 27,263 21,223
Total liabilities 353,449 313,454 338,717 288,732 340,600 278,047 326,486 272,477
Paid up capital 10,545 9,170 10,545 9,170 9,170 9,170 9,170 9,170
Total shareholders' equity 28,117 25,824 28,260 26,909 27,258 25,774 26,406 27,691
Total liabilities and shareholders' equity 381,576 339,288 366,987 315,651 367,868 303,831 352,903 300,178
Off- Balance Sheet Items 145,505 142,497 152,143 134,020 149,990 125,110 154,104 123,039
Profit And Loss Account
Net interest income/net profit on investments 5,200 4,028 3,491 2,645 2,288 1,646 1,202 833
Total operating income (A) 14,962 13,933 10,611 9,953 6,888 6,441 3,597 3,173
Total operating expenses (B) 5,179 4,871 3,637 3,431 2,375 2,140 1,154 1,016
Profit before provision (C=A-B) 9,783 9,062 6,974 6,522 4,513 4,301 2,443 2,157
Net profit after taxation 24,73 1,169 2,472 2,367 1,590 1,187 626 877
2.24
Earnings Per Share (EPS) 2.35 1.11 2.34 1.73 1.29 0.68 0.96
(Restd)
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a bank with vision
Report of the Bank’s

Shariah Supervisory Committee
Bismillahir Rahmanir Rahim Assalamu Alaikum Warahmatullahi Wabarakatahu.
All Praise is for Allah, The Most Beneficent, The Most Southeast Bank Limited has constituted a Shariah
Merciful. Allah, alone without partner or associate. Supervisory Committee with experienced and
knowledgeable persons in Islamic jurisprudence
Muhammad (SWS) is His true worshipper and to advise and provide guidance on Islamic Banking
Messenger, his family and his companions. operations. The following veterans versed in Islamic
jurisprudence are the Faquih Members on the
The shareholders, depositors and customers of Shariah Supervisory Committee:
Southeast Bank Limited:
01. Professor Moulana Mohammad Salah-Uddin

Khateeb, Baitul Mukaram National Mosque, Dhaka, Chairman
and former Principal, Madrasha-e-Alia, Dhaka.
02. Mr. M. Kamaluddin Chowdhury
Former Managing Director of Islami Bank Bangladesh Ltd. Member
and Shahjalal Islami Bank Ltd.
03. Moulana Mohammad Kafiluddin Sarker
Principal, Dhaka Nesaria Kamil Madrasa and Khateeb, Member
Aminbagh Jame Mosque
The Shariah Supervisory Committee reviewed invited to speak to the participants in such
different operational issues including those referred training programs.
by the Management of the Bank. It gave necessary The people that work in Bank’s Islamic banking
guidelines and counseling. branches as well as Islamic Banking Division at
Head Office are sufficiently trained to offer best
In carrying out the roles and responsibilities of the Islamic banking services complying with Shariah
Shariah Supervisory Committee of the Bank as principles.
prescribed in the Shariah Governance Framework
in Guidelines of Bangladesh Bank, we hereby report The Islamic Banking Branches were advised to
the following facts and circumstances concerning move aggressively to procure more low-cost
Bank’s Islamic banking services in the financial year and no-cost deposit by increasing the number
ended December 31, 2018. of Accounts and number of deposit customers
of the Islamic Banking Branches to improve
their deposit-mix.
During the Year 2018, Shariah Supervisory
Committee of Southeast Bank Limited held The Shariah Supervisory Committee advised
03(three) formal meetings. to park more fresh investment clients in the
Islamic Banking Branches.
The Shariah Supervisory Committee advised
to arrange Shariah Inspection of every Branch The Shariah Supervisory Committee approved
twice in a year and ensure compliance of the Branding of Islamic Banking products within
shariah requirements in Bank’s Islamic Banking one folder named “Tijarah”. The Committee also
operations. advised that the folder containing the salient
features of Bank’s Islamic Banking Products
Training Program on Islamic Banking were should be provided to the Islamic Banking
arranged. Members of Shariah Supervisory Branches. The instruction was complied.
Committee and experts in Islamic Banking were
155
Considering the good experience of the previous Shariah Inspection reports of Islamic
year, the Shariah Supervisory Committee banking operation of the Bank of the
advised to take pragmatic steps to extend year 2018
the Bank’s services to more Hajjis through all
our Branches in the coming year 2019 in the We further report that:
following manner.
i) To take steps to display Hajj banner at i) The Bank engaged one Muraquib for Shariah
prominent places of the branches when inspection of Bank’s five Islamic Banking
Hajj activities will start. Branches. The Muraquib has been performing
ii To encourage the Branches for issuing Bank his duties satisfactorily.
Guarantees in favour of parties engaged in ii) The Shariah Supervisory Committee stressed
organizing Umrah exercising due diligence upon frequent inspection of the Islamic banking
and observing all norms to boost up branches. The Management of the Bank
operational income of the Branches. confirmed that all the Islamic banking branches
ii) To contact with the nearest registered Hajj were inspected by the Muraquib in 2018. It
Agencies of all the Branches for more Bank was observed from the inspection reports
guarantee business. that compliance of Shariah has significantly
improved during the year.
The Shariah Supervisory Committee advised
to adopt a 02 (two) year’s Business Strategies iii) No deviation of any Shariah requirement was
and Operational Policy and Plan: 2019-2020 in reported to the Shariah Supervisory Committee
respect of all areas of Islamic Banking business. by the Management.
iv) Efforts regarding engagement of buying agents
Considering among others sector wise at branch level has been strengthened . They
investment, low cost deposit mobilization, are being made aware and inspired to comply
number of Account opened. with shariah requirements in the discharge of
their duties as the buying agents.
i) To determine annual performance Budget
May Allah give us tawfique to achieve His satisfaction
for 2019 and 2020 separately within the
through implementation of Shariah principles in
said Strategic Plan.
every sphere of our life including those applicable
ii) To determine the priority sector investment to banking transactions. Ameen.
areas for Islamic Banking Branches to cope
with other peers.
iii) To determine target of minimum 10%

annual incremental growth for Islamic PROF. MOULANA MOHAMMAD SALAH-UDDIN
Banking Branches by 2020 based on the Chairman
position as on 31-12-2018. Shariah Supervisory Committee
156
a bank with vision
157
Management Review,
Responsibility and Evaluation
Corporate Banking 159-163
SME, Agri-Credit and Financial Inclusion 164-170
Retail Banking 171-172
Glimpses of some Projects Financed by SEBL 173-179
Islamic Banking 180-181
International Business Operations 182-185
Off-Shore Banking Operations 186
Treasury Management 187-188
Foreign Remittance 189
SEBL Credit Card 190
Alternative Delivery Channel 191-192
Credit Risk Management in Southeast Bank Limited 193-194
Risk Management Practices in Southeast Bank Limited 195-196
Prevention of Money Laundering 197
Information Technology (IT) and Cyber Security Measures 198
Credit Rating 199
Capital Plan 200-201
Statement of Non-Performing Loan 201-204

a bank with vision
Corporate
Banking
Southeast Bank always remains vibrant to the changes of customers’ need
and choice with the passage of time. Products and policies are redesigned
and revised taking the time-befitting features into consideration to meet the
diversified needs of the customers irrespective of business size and location.
Corporate Banking is a major source of profit for a In the year 2018, Southeast Bank’s strategic
bank being the main originator of customer loans. priorities were growth and profitability whilst
Corporate Banking is the custom-tailored financing maintaining asset quality and strengthening the
and banking services for corporate houses. Such foundations for future growth. During the period,
Banking is typically offered by commercial banks the Bank continued to provide comprehensive and
and entails all the services that can be extended on innovative banking solutions to its corporate clients
a financial level to corporate entities to ease day-to- including financial institutions.
day operations. Cash management, working capital
and project finance are some sorts of products Maximization of profitability through promotion
generally available under such banking. of lending products and appropriate loan pricing
are the primary focus of the Bank’s Corporate
Likewise, the Corporate Banking Division (CBD) of Banking Division. Diversification of credit portfolio
Southeast Bank is engaged in planning, developing in promising and productive sectors is also one
and managing the Bank’s corporate, commercial of the prime objectives. The strategy of CBD is to
and institutional business to ensure desired maintain a prudent mix of various client segments
profitability and sustained growth in line with the and products, economic sectors, geographical
Bank’s strategic plans, credit policies and business locations, currency and maturity in commensurate
objectives. with economic and business trend, life cycle of the
products, demand-supply gap, social obligation, etc.
Southeast Bank finances its corporate clients
generally in the following ways – The overall credit policy of Southeast Bank has
already been revised and updated incorporating the
changes and new aspects in the light of guidelines
Export Finance
of Bangladesh Bank to ensure effective credit risk
Project Finance management and compliance with the regulatory
framework. Corporate Banking activities of Southeast
Trade Finance
Bank are carried out addressing appropriate credit
Working Capital Finance risk environment, sound credit approval process,
suitable credit administration, measurement and
Work Order Finance
monitoring process and adequate control over
Real Estate Finance credit risk.
Syndicated Finance
Southeast Bank sets specific industry-wise lending
Besides, Southeast Bank has also set up a Cash caps considering the existing concentration, risk
Management Services Unit which mainly looks appetite, future growth opportunities, etc. Lending
after mobilization of low-cost/ no-cost funds of the caps discourage concentration of Bank’s global loan
corporate houses by providing various tailor made portfolio into one particular sector and encourage
services to them. In the coming years, the Bank will diversification of the total loan in various sectors
exert enhanced effort for more dynamism in such with a view to minimizing concentration risk and to
cash management activities. maximize the future growth of the Bank.
159
On the other hand, considering the cyclical aspects, Export Finance

economic condition, seasonal fluctuation, political
environment, related risk factors as well as growth The export sector in Bangladesh has grown
appetite in each sector, Corporate financing significantly making a major contribution to the
activities follows a prudent sector-wise budgetary national economy and is playing an important role
allocation as per annual credit plan. in employment generation and foreign currency
earnings. In the fiscal year 2017-18, Bangladesh
Based on the policy guidelines given by the Board of exported goods worth BDT 2,922.24 billion where
Directors and catering to the ongoing requirements the contribution of RMG sector is 82.82 percent.
of the entrepreneurs and the economy, the Southeast Bank has been financing in the export
management of the Bank periodically updates the sector on priority basis and at present, a sizeable
policies and strategies in line with policy-parameters portion of Bank’s total loan portfolio belongs to
of the central bank with due approval of the Board around 200 export clients. During the year 2018,
of Directors. the Bank has handled export business to the tune
of BDT 190,402.80 million.
Year-wise position of Loans & Advances of Southeast
Bank is given below: A dedicated unit named as ‘RMG, Textile and Export
Financing Unit’ at Head Office has been handling the
Outstanding at credit portfolio of export-oriented clients. This client
Growth base includes entrepreneurs in RMG - both Woven
Year the end of the year
Rate & Knit, Sweater, Textiles, Home Textiles, Spinning,
(BDT in Millions)
RMG accessories, Jute and Jute goods and Leather
2018 267,671.63 14.23% goods. Southeast Bank extends both project finance
2017 234,316.72 22.13% and working capital finance to its export clients.
2016 191,865.59 13.61% Southeast Bank extends all types of facilities and
2015 168,878.46 14.83% services to the export oriented organizations. SEBL
continuously enriches its service basket for the
2014 147,070.81 9.05% exporters some of which are listed below,
L/C Advising
L/C Transfer
Outstanding at the end of the year
(BDT in million) Facilitate export against L/C and sales contract
Facilitate buying house activities
300,000.00 Export financing
Documentary collection
Issuance of different certificate as and when
required by the exporter
Maintain different FC account (FC, ERQ etc.)
100,000.00 Different advisory services
2014 2015 2016 2017
Facilitate different schemes provided by
government & foreign bodies, such as;
Cash incentive
LTFF
EEF
EDF
GTF
The teams working in export financing in Head
Office and Branches not only conduct detailed and
160
a bank with vision
proper analysis of the clients’ requirements but also policy and rules and regulations of Bangladesh Bank
ensure meticulous compliance with Bank’s RMG / and other regulatory authorities. During this process,
Export financing guidelines, Export and Import the officials meet the clients and visit their business
policies, Foreign Exchange regulations, Circulars of premises for better understanding of their needs
Bangladesh Bank and other prevailing rules and and for appropriate evaluations of their proposals.
regulations of the regulatory bodies. Periodic visits
This process of appraisal is done for all types of
are made to clients’ factories as a part of regular
credit facilities including Term Loan, Overdraft, Time
monitoring.
Loan, Letter of Credit, Loan against Trust Receipt,
different types of Bank Guarantees such as Bid
Export Performance Growth Bond, Performance Guarantee, Advance Payment
Year Guarantee, Security Bond, Customs Guarantee, etc.
(BDT in Million) Rate
2018 190,402.80 13.63% In the year 2018, a good number of corporate

clients have availed Trade Finance and General
2017 167,562.98 14.29% Credit products from the Bank. During this period,
the Bank extended facilities in the form of working
2016 146,606.09 15.96%
capital credit as well as Term Loan to both existing
2015 126,423.89 12.74% and new clients in the fields of food items, edible
oil, other consumer items, food processing, rice mill,
2014 112,137.60 17.77% feed mill, petroleum, chemical, printing & packaging,
publishing, ship breaking, construction materials,
furniture & saw mill, IT, electronic goods, deemed
Outstanding at the end of the year export, etc.
(BDT in million)
200,000.00
Project Finance
Southeast Bank provides Project Finance for setting

150,000.00
up / Balancing, Modernization, Rehabilitation and
Expansion (BMRE) of Manufacturing and Service
Industries. There is a dedicated cell named ‘Project
100,000.00
Cell’ at our Head Office which handles all sorts of
2014 2015 2016 2017
credit proposals of the clients (excluding the clients
Outstanding at the end of the year (BDT in million)
under RMG, Syndication & SME cell) related to
project finance covering:
Trade Finance
(i) Construction of new factory building of the new
A significant portion of the Bank’s credit portfolio is
project.
distributed amongst trading sector. The portfolio
is diversified in commodity trading, construction (ii) BMRE of the existing projects financed by our
and supply business, import financing, work order Bank and other Bank(s).
financing, stopgap funding, fixed asset procurement, (iii) Setting up new project with new line of business
bill purchase etc. This Trade Finance and General of the existing client.
Credit unit of Corporate Banking deals with various (iv) Working Capital finance to the newly set up
client segments for different economic purposes in project.
trading, manufacturing and service sectors.
(v) Working Capital finance to the existing project
with our Bank and other Bank(s).
The Trade Finance and General Credit proposals are
forwarded to Head Office by the Branches dispersed (vi) Setting up LPG storage, bottling & distribution
all over the country. The credit applications are then plant.
processed for approval by the Trade Finance and (vii) Construction of inland & coastal ship.
General Credit unit complying with Bank’s credit
(viii) Setting up Amusement park & resort.
161
(ix) Construction of residential/commercial building. Real Estate Finance

Project Finance is generally provided in the form of
Term Loan to facilitate the client for procurement Real estate is an important sector for the
of fixed assets, such as capital machinery, auxiliary development of an economy. Private sector real
machinery & equipment, shed / building, etc. Project estate business has a huge growth prospect in this
Finance is usually followed by Working Capital densely-populated country since a large segment
Finance to meet day to day operational expenses of of population belonging to middle and growing
the project so that the project can run profitably to middle class prefer to buy apartments. Despite such
repay the Bank’s dues. potential opportunity, the housing sector has been
facing setback since 2007/2008. The real estate
A detailed appraisal called feasibility study is sector had to suffer severe sales-decline during this
carried out before financing a project. The major period. There is a long queue of unsold flats now. All
aspects include Technical Appraisal, Marketing the entrepreneurs in this sector have been suffering
Appraisal, Financial Appraisal, Managerial Appraisal from sluggish sales trend.
and Organizational Appraisal. Working Capital
assessment is also done for Working Capital Finance Banks and other financial institutions seem to be
for the project to ensure smooth operation of the reluctant to finance the developers in the prevailing
project. condition of this sector. In the year 2018, Southeast
Bank’s policy was to maintain the portfolio in real
Since inception, Southeast Bank has been an active estate sector in a good shape and side by side to
partner of the private sector in developing large and finance new real estate projects having extraordinary
medium scale industries of the country. The Bank has potential. The Bank is of the opinion that the full
financed setting up of various industrial units in the opportunity of the housing finance sector can be
areas of Spinning, Textile, Garments, Pharmaceutical, realized only if all-out efforts are made to develop
Ceramic, Cement, Paper, Telecommunication, Steel, the housing finance market on sustainable and
etc. The Bank has also extended project finance sound footing.
to several service industries, such as hotel, resort,
hospital, educational institution, transport, filling Syndicated Finance
station, etc. The Bank has also financed a good
number of real estate projects. The main objective of the Syndicated Finance and
Club Finance is to spread and share the credit
Work Order Finance risk among and with all the participating Banks for
specific investment. Southeast Bank is acting as one
Southeast Bank provides financial support – of the Lead Arrangers as well as participants in the
both funded & non-funded credit facilities to the Banking industry of the country for development/
contractors to execute work orders issued by operation of different projects under Syndication /
Club Financing Arrangement. Some of the sectors
various departments/ divisions of Government as
financed by the Bank through Syndication are
well as different private organizations acceptable
textile, cement, steel, ceramic, refined sugar & oil,
to the Bank. The Bank participated in several
paper & pulp, aviation, hospital, University, telecom,
mega projects of the Government by financing the
power, aviation etc.
relevant contractors. In 2017, the Bank continued
to facilitate reputed contractors having sound track
As a Lead Bank, Southeast Bank arranged a good
record for implementation of projects of LGED,
number of Syndication deal with total facility of
Roads and Highways Department (RHD), Railway,
around BDT 3500.00 million. On the other hand,
City Corporation and other organizations. Bank’s
Bank’s participation in different Syndicated/ Club
work order financing products also cater to the
finance arrangement was around BDT 15300.00
need of contractors engaged in execution of supply
million till 2018. In 2018 the Bank participated in a
orders.
162
a bank with vision
number of Syndication deals with total approval of Non-funded Business

BDT 500.00 million in food and allied industries.
The Bank registered a positive growth of 12.50
Performance in 2018 percent in import business in 2018 as compared to
that of previous year. The volume of import business
Funded Business payments (FOB) in 2018 was BDT 242,294.82
million while the same in 2017 was BDT 215,379.77
In 2018, the Banking Industry of Bangladesh million. The main import commodities were capital
experienced a slow credit growth due to sluggish machinery, raw cotton, scrap vessels, cement
credit demand by the private sector and it was clinkers, wheat, edible oil, petroleum products, yarn,
obviously a major challenge for Southeast Bank. fabrics, garment accessories and other consumer
The Bank has always focused on the ‘quality’ aspect items.
of credit with cautious augmentation of its credit
portfolio. During the year 2018, the Bank exerted The export business of the Bank increased by 13.63
continuous and all-out effort to attract more ‘quality’ percent in 2018. In the year 2018 the volume of
customers to maintain the ongoing growth of the Bank’s export business was BDT 190,402.80
loans & advances and strengthen further its credit million which was BDT 167,562.98 million in the
portfolio. previous year. The main export commodities were
readymade garments, knitwear, frozen food, shrimp,
In 2018 the Bank successfully accelerated growth handicrafts, jute & jute goods, etc.
of its funded business. The accumulated loans and
advances of the Bank stood at BDT 267,671.63 The Bank registered a positive growth in Bank
million as on December 31, 2018 compared to Guarantee business too. The volume of this
previous year’s position at BDT 234,316.72 million business was BDT 22,420.10 million in 2018 while it
registering a growth of 14.23 percent over the was BDT 16,407.09 million in 2017, posting a growth
previous year. The Bank was able to maintain a of 36.65 percent.
prudent Loan Deposit Ratio throughout the year
and it stood at 81.55 percent at the year end.
163
SME, Agri-Credit and

Financial Inclusion
Like any other developing economies Small & medium enterprises (SMEs)
constitute an important component of Bangladesh Economy. Their role is
significant in not only contributing to growth but also meeting the aspirations
of a developing economy. Our Bank attached with SMEs not only in terms of
lending, but also by providing support in other areas like transaction banking
and Savings mobilization of SMEs and offer complete banking solutions to
SMEs across industry segments with a suite of products customized to their
business needs. Our bank has Special SME Officers in all our branches to
cater service to Micro, Small and medium enterprises.
Year 2018 was a fascinating period for SME business Outstanding SME loan of the Bank as on December
because Bank had a strategic priority in this 31, 2018 stood at BDT 73,769.60 million compared
segment. Bank focused on careful portfolio growth to 37491.54 million as on December 31, 2017,
maintaining a cautious outlook on some sectors. We registering a growth of 96.74%. In 2018, the Bank
continued to focus on strengthening our delivery disbursed BDT 58,921.20 million to clients through
capabilities for SME customers by increasing rural all its branches.
and sub urban branches
Our Growth in Small and Micro Enterprises is very
Southeast Bank has always viewed the SME segment remarkable. Since we felt that smaller segment of
as integral to Bangladesh’s growth and will continue SME’s access to finance is more challenging we
to partner with them while building a healthy have concentrated more in this segment and as
portfolio. A strong SME sector is fundamental to a consequence in last 2 years small Enterprises
building a resilient and dynamic corporate sector as outstanding experienced very fast growth.
the Bank acknowledges their complementary role in
business ecosystem.
SME Disbursement
Sectorwise Disbursement in SME
BDT in Million Manu: Service
25% 21%
Year Target Achievement
2014 25,000 30,877
2015 27,500 35,349
2016 30,000 40,000 Trade
54%
2017 40,000 37,419
2018 55,000 58,920
164
a bank with vision
SME Strategy: to remain the fastest growing business segment in

the Bank.
To concentrate more in SME banking Southeast
Bank adopted a medium term SME strategy in The following five fundamental areas have been
2016. In line with Bank’s medium term SME strategy covered in the strategy: (1) SME focus and execution
Bank segregated SME Business and underwriting capabilities; (2) market segmentation, products and
from other Business Segments. As evident in our services; (3) sales culture and delivery channels; (4)
disbursement in SME segment and due to Branch credit risk management; and (5) IT and MIS.
expansion in SME centric areas SME is continuing
The SME Strategy will streamline a robust Risk management strategy for SME Banking.
SME RISK
MANGAGMENT
Develop Acquire &

Understanding Serve Information
products Screen
the Market SME Clients & Knowledge
and Service SME Clients
Learning from
Quantifying Risk Loan Pricing Existing Loans
Dedicate Staff Centralized Team
Internal
Sub-Segmentation Security &
& Provide Using Portfolio
Collateral
External Data Advisory Data
Enhance
Service
Predictive Non Lending Separate Business
Capabilities Relationship from Risk &
Operations
Cluster Based SME Financing and viable and maximum output-oriented approach for
refinancing programs economic development.
As per guidelines of Bangladesh Bank SEBL

Currently, cluster-based SME development
has already adopted a cluster-based financing
is a popular approach for entrepreneurship
approach for SMEs in some industrial sector such
development, SME promotion and industrialization
as Textile, RMG Accessories, Food processing,
with a view to facilitating employment generation Dairy & Poultry, Fisheries etc. we are hopeful that
and poverty alleviation around the world, we are able to expand cluster based SME financing
especially in emerging economies. In Bangladesh all over the country in the upcoming years through
it is considered be the most effective, economically development of new cluster.
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SEBL started a Cluster Financing for Hosiery industry purchasing irrigation equipment, raising cattle and
in Pabna in collaboration with SME foundation. Each purchasing farm equipments through MFI (Micro
eligible micro and small entrepreneur will enjoy Financial Institutions) linkage.
credit facility of BDT 50.00 thousand to Tk.10.00 lac
at the interest rate of 9.00 percent from Southeast Social & Environmental Management
Bank Limited under the SME Foundation's Credit and sustainable Finance
Wholesaling Program. So far 67 members of the
cluster received BDT 28.90 million. Environmental consciousness is nothing new in our
Bank. Ethical principles (in respect of society) of our
In order to support our SME clients Bank signed Bank includes following:
agreement with Bangladesh Bank for availing
following low cost refinancing windows of 1. We do not encourage projects which are not
Bangladesh Bank: environment-friendly for financing by the Bank.
Women Refinance Scheme 2. We provide materials support for protection of

environment.
SME Development fund –ADB (SMEDP-2)
JICA Assisted SME Refinance As a Bank we recognize that balancing non-

Refinancing Scheme for Agro based Industry financial factors such as environmental and social
issues with financial priorities is an essential
In 2018 our 16 clients received BDT 30.80 million part of good corporate citizenship in addition to
from Women refinance, 7 clients received BDT 60.01 being fundamental to risk management and the
million from SME- DP 2 and 1 client received BDT protection of investors. We have a direct impact on
452.00 million from JICA assisted refinance scheme. the environment through our daily consumption of
energy and paper/Ink resources. We also potentially
Rural & Inclusive Banking have an indirect effect on the environment through
the provision of financial services to projects in
Bangladesh rural market presents significant environmentally sensitive areas.
growth opportunities as the market adapts to
rapidly growing mobile connectivity and access to We ensure we build a sustainable business
formal financial services. The Bank’s rural strategy that brings benefit to our shareholders, society,
is focused on leveraging these trends and building the environment and economy. Our existing
a sustainable model for extending financial services Environmental Policy provides a framework for
to rural customers. This is being made possible managing our environmental impacts (including
by offering them a comprehensive product suite climate change) by establishing a set of commitments
backed by Mobile based technology Service called to deliver.
TeleCash. The Bank has set up a distribution network
over the last few years to reach customers in this As per the above principles, we have implemented
market. Bank this year successfully launched a new Environmental Due Diligence on majority of our
program to lend Mobile banking clients. The Bank loan clients.
has developed customized financial products and
services to cater to a wide range of rural customers Various steps have been taken to minimize the
including farmers, traders, processors, as well as bank’s direct operational impact to the environment
rural entrepreneurs. School banking is also a part of to reduce Paper usage and help save Trees and to
our financial inclusion strategy. reduce energy & water consumption.2018 has been
a remarkable year for Sustainable finance activities.
The Bank offers various types of loans covering This year we successfully implemented Bangladesh
the entire agricultural value chain including loans Bank’s new guideline for Social and Environmental
to seed/input dealers, crop loans and loans for management system and its reporting.
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a bank with vision
Environmental and social risk means the risk of The risks associated with both environmental
causing pollution or destruction of the natural and social issues are properly recognized,
environment (land, water, air. natural habitats, evaluated and where appropriate mitigated.
animals and plant species) and violation of human
rights for employees or other stakeholders either Global Climate Partnership Fund
through accidental or deliberate actions.
SEBL takes pride for its partnership with a prominent
We recognize that our primary impact on the Energy fund named Global Climate partnership
natural environment is through our relationship Fund (GCPF) managed by Responsibility AG of
with our customers and the lending decisions we Switzerland. In 2018 bank progressed significantly
take. Therefore: to utilize $ 20.00 million fund. SEBL under a
technical assistance of GCPF engaged Frankfurt
All our lending proposals include consideration School of Management and Finance -a renowned
of environmental and social issues where European Educational institution for capacity
appropriate building in Energy Efficiency and Renewable energy
financing. Under Another technical assistance of
All lending proposals take account of acceptable the fund world famous “Enclude” advisory group of
environmental and social standards or laws and Netherlands helped the Bank to develop a Social
regulations and Environmental management guideline.
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Women Entrepreneur Financing led enterprises. Southeast Bank has 2 exclusive

branches for a woman which is helping flourish
Women constitute half of the population, which women entrepreneurship.
means huge potential to be utilized for socio-
economic development of the country. Southeast In 2018 the Bank has disbursed BDT 2,960.80
Bank want to see more and more women be million to 806 Businesses exclusively owned by
involved in entrepreneurship so that women enjoy women entrepreneurs.
more economic empowerment.
Agricultural and Rural Credit
Development of women entrepreneurs is an
embedded element of SME financing. In our Agriculture is the main life-blood for the economy
experience we observed that “Access to Finance” is of Bangladesh. Almost 47 percent of the total labor
a major challenge for a business owned by women force of the country and 85 percent of rural workers
especially during the initial years of starting a of the country are directly involved with agriculture
business. To address the issue, Southeast Bank has like crops, fisheries, livestock and forestry which
come forward to help the women entrepreneurs ensure food security, create self-employment,
and has given utmost emphasis on the growth & diversification of income generating activities and
development of women entrepreneurship. The better standard of living for the people of the
Bank has a separate dedicated product named country. Agriculture, as a sector contributes 17
“Southeast Shuprova” for women entrepreneurs. percent to the national GDP.
To encourage women Southeast Bank Ltd. provides
loan to the women entrepreneurs at much Agricultural credit has significant importance on
easier terms & conditions including low interest, the socio-economic development of the country
relaxed collateral requirement etc. Bangladesh since agricultural credit has increased production
Bank’s refinancing windows also help women in agriculture sector. This is also a priority sector
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a bank with vision
of the government as well as Bangladesh Bank irrigation machinery, agriculture machinery,

to ensure food security and nutrition, poverty pisciculture farming, cattle/dairy & beef fattening,
alleviation, employment generation and accelerate poultry farming, crop storing & marketing, poverty
the financial inclusion program. To see our country alleviation program and others activity related to
as a middle income country, our GDP growth agriculture) and branch wise yearly & monthly target
should be at least 7% which may be not be possible for smooth allocation of agriculture credit. Our bank
without 4%-4.5% agricultural growth. Considering also extends Agriculture / Rural Credit as one of the
the above, Southeast Bank Limited has been
major tools to bring the rural & unbanked people
continuing proactive policy and program to boost up
specially the farmers into the banking channel as
agriculture financing to the farmers and agricultural
financial inclusion program which plays a vital role
entrepreneurs with utmost importance.
in the rural economic development of the country.
In the absence of own branch network the bank
We also believe that if the nation’s agriculture and
rural base economy walk through a techno-based extends agriculture credit facility through third party
eco-friendly process, all the targeted goals will networks like well reputed NGOs / MFIs. It is worth
be achieved in a sustainable way. With the same mentioning that while using third party network
vision, Bangladesh Bank (BB) announces a farmer- for agriculture financing, the bank selects the
friendly agriculture and rural credit policy for each NGOs/MFIs very meticulously to ensure the proper
fiscal year. Keeping this in mind our bank sets the utilization of the fund. The Bank has disbursed quite
agriculture and rural credit policy for each fiscal year. a large portfolio of agriculture loans during the year,
Our bank has also set sector wise (crops cultivation, which are listed below.
Loan disbursed during 2018 Disbursement at

Sector of disbursement
(BDT in million) percent (%)
Crops / Vegetables cultivation 2,160.37 61.0
Fisheries 389.57 11.0
Livestock 733.11 20.7
Irrigation equipment 106.25 3.0
Crop storage & marketing 35.42 1.0
Solar 10.62 0.3
Poverty Alleviation 106.25 3.0
Total 3,541.59 100
Agriculture loan @4% rebate interest disbursed in the cultivation of pulses, oil seeds,
rate spices and maize at farmers level at 4% from 01 July,
FY 2010-2011 under interest-loss subsidy facilities
There is a large demand for pulses, oil seeds, of the Government. During the year of 2018, our
spices and maize in the country. But the bank has disbursed BDT 2.54 million among 24
production of these crops is not sufficient. As farmers against the target of BDT 1.50 million at
a result, we have to spend huge amount of rebate rate (4 percent) for cultivation of maize, oil
foreign currency for importing them. In order seeds and spices. All these indicate our endeavor
to encourage on production of such crops and to bring more and more un-banked rural people in
disburse loan to this sector Bangladesh Bank (BB) banking system by providing them with agriculture
has set the concessional interest rate of credit credit at a lower interest rate.
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Loan disbursed during 2018

Crops No. of clients
(BDT in million)
Oil seeds 0.2 1
Maize 1.74 17
Spices 0.60 6
Total 2.54 24
Target and achievement Bank, a target of agricultural credit amounting to

BDT 4,280.00 million only has been set for Southeast
Southeast Bank Limited has achieved the Agricultural/ Bank Limited for the FY 2018-2019, out of total target,
Rural Credit disbursement target of BDT 3,540 amount of BDT 1,007.50 million has been achieved
million FY 2017-2018. In line with the Agricultural & during the period from July 2018 to December 2018
Rural Credit Policy and Programme of Bangladesh which is 23.53% of the yearly target.
BDT in million
FY Target Achievement Achievement in percent (%)
2015-16 2,400.00 2,793.90 116.41
2016-17 2,950.00 4,015.00 136.00
2017-18 3,540.00 3,540.00 100.00
1,007.50
2018-19 4,280.00 23.53
(Till December 18)
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a bank with vision
Retail
Banking
Southeast Bank’s Retail Banking Division was established in the year 2012,
with a vision to provide a wide range of retail banking services to the unbanked
and under banked customers within the branch network. At present, Retail
Banking Division is prepared and well-structured to attain sustainable growth
in retail business by offering competitive products & services with minimum
turnaround time in every aspect.
In the year 2018, banking industry has faced lots of SAVINGS ROYAL to enhance low cost deposits of the
ups and downs. In the beginning of the year most bank. In a very short period of time the balance of
of the banks faced liquidity crisis in the market and the two new products stood at BDT 2250 million. At
faced a lot of problem to meet the business as well the end of December 2018, the total retail deposit
as regulatory requirements. To overcome this, retail stood at BDT 119,211.05 million. To increase low
marketing team is giving tremendous efforts on cost /no cost deposit by providing retail products
mobilization of low cost/no cost deposit. to our corporate and SME clients is an opportunity
for us. That’s why we started giving Payroll Banking
Services to our valued corporate clients
Retail Deposit Portfolio (in million)
100,000.00
26,534.17 29,632.62 80,166.61 89,578.43
90,000.00
80,000.00 Different Retail Savings Deposit Mix
70,000.00
60,000.00
50,000.00 Savings Fast Nokkhotro
40,000.00 6.92% 0.05%
30,000.00 Taroka
20,000.00
Anannya
6.19% 0.06%
10,000.00 Bichokkhon
- Royal Saving 0.99%
CASA FD & Scheme
1.43%
2017 2018 School Banking Savings
0.14% Account
84.22%
In March 2018, retail banking division launched
two deposit products namely SAVINGS FAST and
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Retail Banking Division has also disbursed a good of December, 2018, where the NPL was 2.33%. The
number of retail loans through our wide range of main goal for next year is to capture the maximum
branch network. The Retail Loan portfolio grew by share with a focus to increase home loan portfolio.
55.18% and stood at BDT 2,499.11 million at the end
Figure in million
20.25% 0.74% 88.23%

Dec-18
Dec-18
142.01
1,839.64
Dec-17 Dec-18
118.09 Dec-17 514.29
510.53 Dec-17
977.33
Car Loan Personal Loan Home Loan
Year No of Account Growth of A/c Volume (BDT in Millions) Growth of Volume

2017 2,608 20.74% 1,610.48 61.53%
2018 2,863 9.78% 2,499.11 55.18%
In 2019, we would put strengthened emphasis process flow, tailor made deposit and loan
on retail asset and liability business to achieve products (Deposit and Loan) and staffed with the
a fragmented portfolio to diversify risk and required skill sets, we will expand our business at
maximize returns. Through establishing improved high pace.
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a bank with vision
Glimpses of some
Projects Financed by SEBL
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174
a bank with vision
175
176
a bank with vision
177
178
a bank with vision
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Islamic
Banking
In tandem with the global expansion of Islamic Financial analysis
banking, Bangladesh has experienced phenomenal
growth in Islamic banking following strong public Islamic financial system can serve as a tool to foster
demand for the system. Since its inception in 1983, economic growth and human well-being. Promoting
Islamic banking industry has recorded robust risk-sharing instead of bad finance, reduces poverty
performance and the industry now accounted and inequalities which are the necessary objectives
for more than twenty percent market share of the of that need to be addressed by economic
entire banking industry in Bangladesh. An important development policy makers. Islamic banks handle
development in Islamic banking in the last few years fund from saver to investors through Islamic modes
has been the entry of some conventional banks in the of finance. The goal of Islamic banking and finance is
market and their use of Islamic modes of financing to bring greater justice and strive to achieve socio-
through their Islamic branches, windows, or units. economic development.
Southeast Bank Limited is also one of the leading As on December 31, 2018, the deposit and
Private Bank which caters both traditional and investment of Islamic Banking Branches were
Islamic Banking services. Bank started its Islamic BDT 20,001.90 million and BDT 15,684.70 million
Banking operation through opening 03 (three) which posted growth of 19.77 % and 10.17 %
Islamic Banking Branches in the year 2003. In respectively over those of 2017. During the period
the year 2004, Bank also opened 02 (two) Islamic
2018, total import and export business handled by
Banking Branches for smoothly running its Islamic
the Islamic banking branches were BDT.10,919.30
Banking operation based on the principles of
million and BDT 10,204,90 million respectively.
Islamic Banking Shariah. At present, Bank has 05
Non Performing Investment of Islamic branches
(five) Islamic Banking Branches out of total 135
were 3.48% of their total investment in 2018. The
Branches of the Bank. The Bank provides Islamic
performance of the Islamic Banking Branches
Banking services to the customers in compliance
during the year 2018 is also reflected in its Balance
of the provisions of the Bank Companies Act 1991,
Sheet and Profit and Loss Account as are included
Bangladesh Bank’s directives and the principles of
in this report.
Islamic Shariah.
It is expected that backed by the prized guidance and

All activities of Islamic Banking Branches are
policy directives of Bank’s Board and Management,
conducted on interest-free and equity-based
the Islamic banking operation will progress further
financing based on the principles of Islamic Shariah.
in 2019 and earn business success in different
Investment is made through different modes i.e.
indicators, In Sha Allah.
Mudaraba, Musharaka, Hire Purchase (under
Shirkatul Melk), Bai-Murabaha, Bai-Muajjal, and Bai-
Salam and investment income is shared with the
Major Activities in the year 2018
Mudaraba depositors on an agreed ratio, ensuring
i) 03 (three) meetings of Bank Shari’ah Supervisory
a reasonably fair rate of return on their deposits
based on weightage of individual product. Committee were held where different
operational issues, policies and strategies were
Bank’s Islamic Banking services are branded reviewed.
Southeast Tijarah. The Bank is an active member
of the Central Shari’ah Board for Islamic Banks of ii) For the purpose of providing premier banking
Bangladesh and Islamic Banks’ Consultative Forum. services to holy Hajj Pilgrims, Southeast Bank
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a bank with vision
signed Memorandum of Understanding (MOU) Banking Services Desk (IBSD) for the officers of
with Hajj Agencies Association of Bangladesh the Bank.
(HAAB), Ministry of Religious Affairs and
Sonali Bank Limited for collection of Hajj Pre- iv) The Muraqib of the Bank conducted Shariah
registration and Registration Fee from the Hajj inspection of the Islamic Banking Branches
Pilgrims and Hajj Agencies. Side by side, most of to ensure strict compliances with Shariah
the HAAB members are involved in IATA ticket, requirements in Islamic Banking. The report
visa processing and overseas employment of the Muraqib was submitted to the Shariah
business in addition to their Hajj and Umrah Supervisory Committee for review.
related business. We provided financial support
to the Hajj agencies as needed throughout the It is expected that in compliance with the prized
year by way of Bank Guarantee and working guidance and policy directives of Bank’s Board and
capital finance. Management, the Islamic Banking operation will
progress further in 2019 and earn business success
iii) 01 (one) Training Program was conducted on in different indicators, In Sha Allah
Islamic Banking Operations, IT issues and Islamic
181
International
Business Operations
The Bank has established itself as one of the top The Bank is maintaining 35 (Thirty Five) Nostro
international trade supporting banks in Bangladesh. Accounts in major currencies including 10 (Ten)
International Division at Head Office serves as the Nostros under Asian Clearing Union (ACU) and 01
nucleus of the trade business of the Bank with its (One) Nostro for Off-shore Banking Unit (OBU) to
Financial Institutions, Business Operations, Central support foreign exchange transactions. The Bank is
Trade Services Department, Treasury Back Office, also equipped with hefty confirmation lines of over
EDF, Cash Incentives, LTFF, GTF, FX Transactions USD 600.00 million as well as funded credit lines
Reporting and SWIFT units. The Bank has a balanced with more than 50 reputed banks worldwide.
network of correspondents to cover almost every
corner of the globe to support the correspondent
As of December 31, 2018
banking needs of the trade clients. The Bank is
72 Countries
constantly expanding its relationships with regional,
national and global level leading banks in different 285 Banks
countries. As of December 31, 2018 the Bank has 35 Nostro Accounts
established Relationship Management Application 644 Correspondents
(RMA) with 644 correspondents including 285 banks IFC, ADB & GCPF
in 72 countries over the world.
2018 has been a successful year for the Bank. International Division has supported processing USD 5,154
million worth of trade finance business.
Figures BDT in Million
2018 2017 Growth in %
Import Business 242,294.80 215,379.77 13%
Export Business 190,402.80 167,562.98 14%
Currently, International Trade Service is provided from 21 (twenty one) AD Branches, 1 (one) Central
Trade Services Department (CTSD), and 2 (two) Off-shore Banking Units (OBUs) under the supervision of
International Division. International Division relentlessly coordinates, supervises and supports International
Trade and Foreign Exchange transactions of AD branches through following units-
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a bank with vision
Financial
Institutions
SWIFT Off-shore
Banking
FX Transactions
International Business
Reporting Division Operations
EDF, Cash Central Trade

Incentives, Services
LTFF, GTF Department
Treasury
Back Office
Having strong relationship with multilateral In 2019, our goal is to centralize trade service
development finance institutions is one of the key functions of the Bank under Central Trade Services
strategic priorities of the Bank. Currently, the Bank Department (CTSD) for ensuring more efficiency,
has relationship with following development finance control and compliance. In 2018, many initiatives
institutions: have been taken for automation of transaction
processing which would be completed in 2019. This
International Finance Corporation (IFC) - The year, we explored different new avenues of learning
Bank is availing non-funded limit of USD 35.00 and successfully implemented some of those. These
million and funded limit of USD 15.00 million initiatives will continue in future.
from IFC under Global Trade Finance Program
(GTFP). SWIFT Operations and Sanctions
Screening Unit
Asian Development Bank (ADB) - The Bank is
availing non-funded limit of USD 89.00 million and Being a member entity of the Global SWIFT. NET
Funded Revolving Credit limit of USD 10.00 million since 2000, Southeast Bank facilitates cross border
under Trade Finance Program (TFP) of ADB. trade transactions, inward/outward remittance
etc. of the Bank through secured state of the
Global Climate Partnership Fund (GCPF) art infrastructure. SWIFT Operation Unit works
– The Bank is availing unsecured funded as an authenticated communication medium of
the Bank at International Division, Head Office.
facility of USD 20.00 million to finance Energy
All the AD branches, Offshore Banking Units,
Efficiency and Renewable Energy projects
Central Trade Services Department (CTSD) and
to mitigate climate change challenges.
Central Payment Centre (CPC) are connected to
183
Global SWIFT Network via Data center at Head Off-shore Banking Unit (OBU).
Office and currently facilitating seamless delivery
of SEBL’s innovative Trade and FEX business 5. Centralization of Credit Report.
products & services to the valued clients. In the
year 2018, the Bank established one of the most Centralized Trade Processing of SEBL;
resilient, secured and dedicated separate network a step towards excellence through
architecture for SWIFT Operations through compliance
adopting industry’s best practices and multifactor
authentication framework, handshaking with Core CTSD started its journey on 1 June 2017, covering
Banking System (CBS) through the Secure File import business of all Non AD Branches. Now we
Transfer Protocol (SFTP), strict monitoring over have already covered all foreign trade business of
SWIFT workstations etc to comply the Mandatory Non AD branches (export business started on 1
Control of SWIFT Customer Security Control August, 2018). Though CTSD is not a profit generating
Framework and Customer Security Programme department, it has made profit of nearly BDT 20.00
(CSP). The Bank continuously evaluates the million in the year 2018 as rebate and payment
robust control procedures already in place for charges. As a step forward to full automation of
operations like centralized trade payments, our trade processing, CTSD is implementing system
NOSTRO reconciliation, adhering additional layer automation step by step. Recently we have launched
of authorization, etc. with a view to ensuring auto email option whereby our clients are receiving
continuous safe and secure Bank’s information in their LCs, payment messages and all other trade
SWIFT network. SWIFT Operations Unit has also related services through their designated email.
implemented ‘SWIFT Mandatory Release 7.2, KYC
Registry in the SWIFT Infrastructure of the Bank. Achievement of CTSD at a glance in
2018
The Bank is using a fully automated cloud based
Sanctions Screening System from SWIFT that screens 1. Covering of import & export business of all Non
both incoming and outgoing SWIFT transactions ADs.
against sanction lists (OFAC, UN, US, EU etc.) for
2. Introduction of Centralized Trade Module in
combating sanction and terrorist financing related
Core Banking system.
threats. Customers of the Bank may feel more
3. Introduction of export module for Non ADs in
relaxed than ever before, knowing that the banking
Core Banking system.
channel is free from infiltration by any criminal or
unscrupulous parties for money laundering and 4. MIS in Trade Wave(LC opening, Bills settlement,
financing of terrorism. FTT, expired LC)
5. Auto email sending option to the client in Trade
IMPORTANT INITIATIVES OF Wave.
INTERNATIONAL DIVISION IN 2018 6. Upgradation of Trade Wave for covering AD
Branches
1. Automation of Monthly Reports and Returns as 7. Income generation of nearly BDT 20.00 million
well as S1, S2, S6, EFCS 8 reports to Bangladesh 8. Covering of AD (Corporate Br.)
Bank.
Future plan of CTSD
2. Automation of EDF processing. Automation of
MT 103 and MT 202 is under process.
1. Advising of all export LCs of the bank through
CTSD.
3. Automation of Treasury Back Office functions
2. All import related lodgement and payment of AD
like Money market/ Fx deal settlements/
Branches through a single counter from CTSD.
reconciliation and nostro cash position to
ensure more efficiency and accuracy. 3. Centralization of trade business of all AD
4. Upgradation of Core Banking System (CBS) for Branches
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a bank with vision
Performance of CTSD in 2018
LC Performance
300
Amount (BDT in crore)
250
200
150
100
50
0
January February March April May June July August September October November December
No. of LC 269 206 259 260 221 180 237 209 242 258 221 227
Amount 176.00 159.31 130.00 189.02 91.80 69.36 183.72 191.99 218.07 110.67 194.11 79.45
FTT Performance
140
120
Amount (BDT in Coroer)
100
80
60
40
20
0
January February March April May June July August September October November December
No. of FTT 22 8 12 15 19 14 19 7 19 30 19 25
Amount 35.16 25.66 13.84 44.73 59.75 37.21 51.52 42.23 49.11 133.27 52.06 80.37
Bills Performance
300
Amount (BDT in Coroer)
250
200
150
100
50
0
January February March April May June July August September October November Decmber
No. of Bills 244 252 225 262 282 201 265 220 232 279 268 253
Amount 109.83 146.94 137.70 111.90 109.46 87.36 241.35 137.18 154.16 145.24 144.32 97.56
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Off-Shore Banking
Operations
Since 2010, the Bank is operating its off-shore last year and it remains one of the top ten profit
banking business with two Off-shore Banking Units contributing business unit of the bank by generating
(OBU) in Dhaka Export Processing Zone (DEPZ) and profit of BDT 211.82 million in 2018. As OBU is
Chattogram Export Processing Zone (CEPZ). Due to highly dependent on borrowed FC fund, it has been
the sharp rise in demand of Foreign Currency (FC) able to keep it book on right track amidst severe
loan and DP LC, at present, OBU is considered one of FC currency crunch in May-June and November-
the important Strategic Business Units of the Bank. December 2018. Last year, Management’s focus was
The financial sector of the world has witnessed rising to diversify OBU portfolio by parking more Type-A
upward trend in LIBOR with significant implications EPZ clients. In line with that strategic focus, OBU
for OBUs. Increasing trend in LIBOR has increased parked one of the biggest Type-A EPZ enterprise of
the cost of fund of OBU. Hence, the rate of growth the country as a client and kept the asset quality as
in profit was not in line with the growth in portfolio. per the expected level.
Nevertheless, OBU profit exceeds than that of
Business Highlights of OBU
2018 2017 Growth %
In USD Mill: BDT Mill: USD Mill BDT Mill:
Total Deposits & Borrowing 142.98 11,996.38 97.91 8,096.87 48%
Total Loans & Advances 139.98 11,744.27 98.24 8,124.62 45%
Total Operating Profit 2.48 211.82 2.15 173.24 22%
OBU of the Bank offers following products and services to valued clients -
Foreign Currency Deposit Account of Non-residents
Export-Import services to A- category industrial units of Export Processing Zones (EPZ) and Economic
Zone (EZ).
Financing Usance Payable At Sight (UPAS) Documentary Credit
Short Term Foreign Currency Loan to ADs for purchase of Export Bills in Foreign Currency
Foreign Currency Term Loan to eligible resident industrial units.
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a bank with vision
Treasury
Management
To cater to the needs of different treasury solutions for inter-bank deposit shot up at the end of the year
in different economic environments by the 2018. In this above stated liquidity scenario our
customers, Southeast Bank has a very dynamic and money market desk handled around BDT 3,160.00
innovative treasury team. The team is committed million on daily basis while maintaining optimum
to offer better prices and excellent services with local currency liquidity of the Bank.
an array of different products which best fit the
changing environment. Through forecasting the Fixed Income Desk
market scenario in terms of liquidity, interest rate
and exchange rate movement, SEBL treasury As one of the active primary dealer banks Southeast
has contributed remarkably well in 2018 and also Bank Limited has been dealing in the primary and
helped the Bank earn a consistent profit over the secondary market of fixed income securities. Our
years. SEBL treasury has separate designated desks fixed income desk of treasury division looks after
to ensure optimum treasury solutions which are the Primary Dealership activities of the Bank and
depicted below: also maintains required amount of government
approved securities for maintenance of Statutory
Money Market Desk Liquidity Requirement (SLR) as per Bangladesh
Bank directives. Inadequate supply of government
Fixed Income Desk securities coupled with high demand of the same
Asset Liability Management Desk forced the rate of interest of government securities
fell sharply. In this downward trend of rate of
Foreign Exchange Desk
interest of fixed income securities our fixed income
Corporate Service Desk desk was able to maintain an optimum portfolio
of government securities which contributed
Money Market Desk significantly to the overall profit of the Bank. In
order to minimize interest rate risk and liquidity
Money market desk assumes the responsibility risk, our fixed income desk analyzed our fixed
of maintaining Cash Reserve Ratio (CRR) as a income portfolio from different dimensions like
regulatory requirement of Bangladesh Bank along duration analysis, sensitivity analysis and risk-return
with local currency fund management of the Bank. perspective. Our fixed income desk always tries to
This desk also facilitates the Bank to have enough play a key role in developing an active secondary
liquidity in order to settle all its financial obligations market in our country which is still a far cry. With
and commitments to the customers of the Bank. the farsightedness and acumen, our fixed income
In the year 2018 Bangladesh Bank issued several desk also took timely decisions by maintaining an
circulars regarding downward fixation of Loan to optimum portfolio of the fixed income securities
Deposit Ratio (LDR), reduction of Cash Reserve Ratio which yielded a considerable amount of income in
(CRR) and re-fixation of Repo and Reverse Repo the year 2018.
rate. Due to reduction of CRR by 100 basis points Tk.
12,500.00 crore approximately was freed from the Asset Liability Management Desk
CRR accounts of all the scheduled banks maintained
with Bangladesh Bank which ultimately made the In banking, Asset-Liability Management is the
market very liquid that was quite evident by the practice of managing the risks that arise due to
very low call money rate that prevailed throughout mismatches between the assets and liabilities of the
the year 2018. Repo rate was slashed down by 75 Bank. In this dynamic financial market environment
basis points keeping Reverse Repo rate unchanged. banks face several risks such as Liquidity Risk,
Consequently deployment of fund in money market Interest Rate Risk, Credit Risk and Operational
in a profitable manner was very challenging. On Risk etc. Asset-Liability Management (ALM) is a
the other hand downward fixation of LDR also put strategic management tool to manage Interest Rate
pressure on the banks as a result of which demand and Liquidity Risk faced by banks. Asset-Liability
187
Management properly addresses the risks that arise with ALM are discussed and instructions are given
in the banking business. The main objectives and accordingly. The ALM desk also reviews and revises
functions of Asset-Liability Management desk are the Asset-liability Management policy of the bank
the following: every year according to the policy guidelines of
Bangladesh Bank.
Liquidity risk management of the bank
Foreign Exchange Desk
Management of market risks including interest
rate and exchange rate risk Our Foreign Exchange (FX) desk dealing in foreign
Planned growth of assets and liabilities currency transaction is staffed with experienced
and skilled dealers having specialized training at
Undertaking financial hedge positions
home and abroad. Our foreign exchange dealers
Overall fund management of the bank remained very watchful throughout the year 2018
Trading risk management; and to closely monitor the exchange rate movement
of USD and other currencies against BDT and
Regulatory compliance
accordingly set the exchange rates of major foreign
currencies. The desk successfully maintained
From the Asset liability management point of view,
favorable Net Open Position (NOP) throughout the
2018 was a challenging year for all the banks as
immediate past year along with ensuring maximum
Bangladesh Bank issued several circulars regarding
level of foreign currency liquidity and explored the
downward fixation of Loan to Deposit Ratio (LDR),
market opportunities through SWAP, Placement
reduction of Cash Reserve Ratio (CRR) and re-fixation
and Forward transactions which facilitated the Bank
of Repo and Reverse Repo rate. Consequently our
to book an optimum level of profit. Our foreign
banking sector became awash with surplus liquidity
exchange dealers made a considerable amount of
with very minimum opportunity to invest. Southeast
trading gain of around USD 180,000.00 through
Bank with strong acumen and insight went for
speculative dealing. The interbank foreign exchange
planned growth of assets and liabilities so that Net
market was quite stable up to third quarter of
Interest Income (NII) registers a steady growth.
the year 2018 and from the beginning of the last
Interest rate in the market was in a decreasing trend
quarter BDT started to depreciate against USD due
for both asset and liabilities; so it was a challenge
to decrease in remittance and increase in import
for the ALM to ensure a reasonable spread. The
payment which ultimately forced the USD/BDT
ALM desk was proactive in revising the rate of
rate to shoot up to Tk. 83.95 at the year end. The
interest on deposit products so that interest rate
inward remittance at the end of 2018 stood at USD
risk is minimized as well as the profitability of the
1,398.86 million compared to USD 1,170.43 million
bank is safeguarded. The ALM is responsible for
at the end 2017 recording a 19.52 percent growth.
the management of balance sheet gap in order
to mitigate the liquidity and interest rate risk of
Corporate Service Desk
the bank. The ALM desk of Southeast Bank has
been complying with the BASEL III requirement
The corporate service desk of the Treasury Division
of maintaining Liquidity Coverage Ratio (LCR) and
of Southeast Bank provides specialized services to
Net Stable Funding Ratio (NSFR) and reporting it
its corporate clients through its diversified products
to Bangladesh Bank on a regular basis. Apart from
tailored to the customers’ needs. The main
this, the desk also reports to the Board of Directors
responsibility of this desk is to ensure maximum
about some liquidity ratios and other important
utilization of the fund of the corporate customers.
financial indicators in every meeting as stipulated in
Basically different renowned life insurance
the new ALM guideline of Bangladesh Bank.
companies are our corporate customers and they
are maintaining a sizable amount of government
With a view to minimize and address various risks
securities portfolio with our bank. Corporate Service
involved in the business, ALM desk of the Treasury
Desk of our treasury division gives its customers time
Division prepares Asset-Liability Committee (ALCO)
befitting advices so that they can maximize their
paper each month and conducts monthly Asset-
return by exploring new investment opportunities.
Liability meeting where all the issues associated
188
a bank with vision
Foreign
Remittance
Remittance has become a major contributor to Although the flow of remittance has slowed down
Bangladeshi economy. As the emigrant workers recently, we were able to achieve positive growth of
from Bangladesh gradually increased over the remittance. In the year 2018, Bank collected USD
years, the amount of annual remittance to the 1,398.70 million as wage earners’ remittance which
country significantly rose. According to World Bank, is 18.55% higher than previous year. Southeast
Bangladesh is now one of the largest recipients of Bank Ltd. is top-most remittance receiving bank
remittance with almost 15 billion USD. Southeast in Bangladesh also received Top Ten Remittance
Bank Ltd is facilitating its best quality Remittance Award for their excellent remittance services by
services and represents itself as a trusted Bank The Centre for Non Resident Bangladeshis (NRB) in
among these Non-Resident Bangladeshis (NRB) and 2018 for their excellence performance in the year
their family members at home and abroad. 2017. We are also taking part in lessening the bank’s
dependency on inter-bank market for payment of
Southeast Bank has designed its products as per import bills.
the needs of the non-resident Bangladeshis and
their family members by extending remittance All the Executive and staff members of the
payment network through sub-agencyships with Remittance Division are dedicated to rendering
local scheduled Commercial Banks, Mobile Financial efficient & prompt services both to the remitters
Services and Micro Finance Institutions/NGOs. and the beneficiaries.
At present, Remittance Division procures Inward
Remittances from 30 (Thirty) Exchange Houses Inflow of Inward Remittance over the past
around the globe with its 02(two) subsidiaries in years:
South Africa and United Kingdom and facilitates
remittance payment through its own 137 (One USD USD
hundred thirty seven) branches, 17 (seventeen) SEBL
(million) (million)
Year Market
Sub-Agent Banks, 4 (four) reputed NGOs and with received received by
Share
Mobile Financial Service like Telecash & bKash. by SEBL Country
2014 629.00 15,316.00 4.1%
Southeast Bank ensures remittance payment with
2015 778.00 14,931.00 5.2%
the help of modern technology and fastest services
like Cash over counter, fastest BEFTN and RTGS, 2016 824.00 12,769.00 6.5%
Direct Online Account deposit by implementing API 2017 1,170.00 13,542.00 8.6%
(Application Program Interface). These initiatives
2018 1,399.00 15,540.00 9.0%
have ensured smooth remittance service for
Remitter as well as its Receiver in all the corner
of Bangladesh. The Bank’s auto-generated SMS
confirms that the money has already been received Year
and payment has been done even in off banking
hours. Our foreign correspondents will be able Year 2018 Year 2014
to deposit remittance instantly in the accounts 9.00% 4.10%
maintained with Southeast Bank.
Apart from providing premier services, we are also

facilitating opening of different type of Non-Resident Year 2015
5.20%
Taka Accounts in the form of Savings Bank Deposit, Year 2017
Monthly Savings Scheme, Wage-Earners Pension 2017% Year 2016
6.50%
Saving Scheme (WEPSS) etc by the expatriates
through our subsidiaries, correspondents SEBL Market Share in Remittnace recieved by
Contractual Marketing Executives (CME). the Country in last 05 Years
189
SEBL
Credit Card
Southeast Bank issues Cards and has designed the worldwide with nominal fee irrespective of class of
products with the best of features at competitive air ticket (economy/business).
fee along with the state of the art technology and
good customer service. The ways and means to pay
is changing dramatically. People are becoming more
comfortable to use Cards for every kind of formal
and informal transactions like shopping at store and Since inception, the bank has been maintaining a
also for paying online. Southeast Bank has been steady growth in credit card business. Like previous
issuing Credit Card since the year 2005 and has been years, 2018 is also a successful year with good
adopting latest technologies and attributing newer business growth to the tune of 11% in net profit,
features to address the ever changing demands. 30% in card base and 22% on outstanding balance
over the position of the last year.
Southeast Bank issues Mastercard and Visa,
the most popular brands of the world. The card
can be used at the POS terminal of a retail store
CARD DIVISION (PROFIT) Figure in million
without carrying the risk of fraudulent use as it
65.3 74.7 88 122.24 135.8
is an EMV CHIP PIN card. Nowadays, many of the
best bargains and deals are found online. One
can shop online at popular sites, book a hotel, buy
a ticket and pay visa processing or exam fee. 3D
Secure transaction of Southeast Bank card makes
online transactions risk- free. The bank issues and
processes card under own card management 2014 2015 2016 2017 2018
software which provides additional data security
and ensures faster transaction processing. World
and Platinum cardholders along with three guests Trends and customer behavior with regard to
can visit Balaka lounge and Skylounge at Hazrat payment transaction is changing rapidly. Physical
Shahjalal International Airport free of cost. A Card Plastic is being converted to digital wallet,
cardholder using the card while purchasing earns conventional POS terminals are being replaced by
reward points. Reward points can be redeemed QR code and transaction is being initiated from smart
for annual fee waiver or cash reward. “EMI PAY” is phones. We have been experiencing emergence of
a repayment facility for our cardholders that allows Samsung Pay, Google Pay, Paytm etc. Time has come
a cardholder to repay certain large purchases in to take the challenge and react accordingly. We have
Equal Monthly Installments (EMI) over an extended already initiated a project for introducing QR Code
specific repayment period. Our Cardholders get based transaction, Mobile Wallet and Mobile Apps
attractive discounts while paying using the card which is likely to be completed in phases.
from a good number of retail outlets, restaurants,
hotels and fashion houses etc. Cardholders get
waiver of renewal fee depending on number and
amount of purchase. Cardholders receive instant
alert of transaction, balance, available balance etc.
by SMS and Email. Priority Pass is complimentary
for World and Platinum Cardholders. Priority
Pass provides access to over 600 airport lounges
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a bank with vision
Alternative
Delivery Channel
Alternative delivery channel (ADC) has enabled the Bank to serve the
customers beyond regular Banking hours. The Bank is providing 24/7 service
through its established delivery channels, like ATM, Recycler-ATM, Mobile
Financial Service (MFS), Internet Banking etc. ADC team is relentlessly working
for further expansion of delivery channels, improvement of quality of service
and introduction of new services.
SEBL Instant Banking
With a view to expanding footprint in modern

banking, Southeast Bank has launched SEBL
Instant Banking in the year of 2018. SEBL Instant
Banking is an Electronic Booth and state-of-the
art technology which provides customers with
real time cash acceptance and dispense facility
through Recycler ATM along with many other
banking services 24/7 round the clock.
SEBL ATM
At the end of 2018, our live ATMs were 173 across the country. Moreover,
ADC has taken imperative initiatives for rapid expansion of ATM Booths at
suitable locations to facilitate our existing customers and penetrate potential
clients across the country.
Growth
Division-wise ATMs Network
ADC has implemented world class technology and
6 Dhaka
7
re-engineered process to ensure faster, smooth and
Chattogram
3 better service. This leads to a noteworthy growth in
14 Sylhet
SEBL Debit Card Transaction Number, Transaction
90 Rajshahi
16 amount and Debit Card Issuance.
4 Khulna
33 Barisal
Mymenshingh
Rangpur
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Successful Transaction Amount Transaction Amount

(In Corore)
Growth 52.79%
At the end of 2018, total transaction amount by SEBL
2000
1090.62 1666.36 Debit Card and ATM/Recycler ATM was BDT 1666.36
crore. In comparison to the year 2017, Transaction
amount has increased by 52.79%
1000
0
2017 2018
No of Debit Card SEBL Debit Card Growth

(In Lac)
Growth 17.14%
At the end of year 2018, our total number of issued
2.5 1.75 2.05 SEBL Debit Card was 2.05 Lac. The number of card
2
has increased by 17.14% in comparison to the year
2017.
1.5
0.5
0
2017 2018
Internet Banking additional layer of security which is enabled during

login to internet banking system and perform each
The Internet Banking System of the Bank has transaction. We have also introduced Multi-level
reached to matured stage, which offers variety authorization for fund transfer facility for Corporate
of services to its clients. To perform a transaction Customers. Moreover, for convenience of individual
through internet banking, like fund transfer, utility customer, self-registration, self-user Id unlock and
bill or Credit Card dues payment, the client has password reset etc. are under active consideration
to collect Hardware or Software token from the for incorporation in the internet banking system.
Bank for Two Factor Authentication (2-FA) for an
192
a bank with vision
Credit Risk Management

in Southeast Bank Limited
Credit Risk Management i. Credit Marketing
Credit risk is defined as the risk of loss of principal Branch officials and Direct Sales Executives promote
or loss of a financial reward stemming from a the business of the Bank and sell the products
borrower's failure to repay a loan or otherwise and services to the prospective customers. They
meet a contractual obligation. While loans are the contact the potential clients and park them to
largest and most obvious source of credit risk; the the Bank as per the directives of Head Office in
Bank is exposed to credit risk through its lending line with the Credit Risk Management Guidelines,
and investment activities as well as from contingent annual sectoral budgetary allocation, strategies and
liabilities. The main objective of the credit risk policies to achieve the targets. With this end in view,
management process is to identify, assess, measure the network of the Bank has been expanded across
and monitor credit risk in all the financial exposure the country to diversify the credit portfolio of the
of the Bank. The Bank has established a credit risk bank through balanced growth of credit in different
management framework to manage credit risk on productive and promising sectors.
individual as well as at portfolio level. Credit Risk
Management process of the bank is articulated ii. Credit Approval Process
through several Board approved policies viz. Risk
Appetite Statement, Credit Risk Management Credit Approval Authorities are delegated to
guidelines, delegation of Business Powers of individuals based on their qualification, designation
Individual Executives/Officers for loans and and experience. A thorough credit and risk
advances, valuation methodology, Standardized assessment is conducted prior to granting of any
Recovery/collection Procedure etc. In addition, loan. The Credit Officer at Branch level acts as
SEBL has well defined and documented operational relationship Officer and originates credit proposal
guidelines for consumer loans, Credit Card, Islamic and submits the same to Head Office for approval.
Banking, Agri Credit and SME financing. This policy is The Corporate Banking Division, SME & Agri Credit
being reviewed and updated annually incorporating Division, Islamic Banking Division, Retail Banking
the new instructions of regulators, considering Division of Head Office are actively involved in
the global and local economic trend and based scrutinizing, analyzing, assessing and processing
on appetite of the Bank. The Bank attempts to the credit proposal. The credit evaluation system
control risk by monitoring credit exposure, limiting comprises of well-designed credit appraisal,
non performing credit and continually assessing sanctioning and review procedures for the purpose
the credit worthiness of the borrowers. The Bank of emphasizing prudence in its lending activities and
manages limits and controls concentrations of ensuring quality of asset portfolio. These divisions
credit risk to individual, geographic areas, sectors at Head Office are being managed by senior level
as well as portfolio level. Major steps of Credit Risk executives for ensuring more intensive and in-
Management practices of the bank encompass the depth care of credit operation. On the other hand,
following: the Credit Risk Management Division is involved in
evaluation and in-depth analysis of risks associated
with the individual borrower and finding out the
i. Credit Marketing
mitigating factors to minimize those risks. Each
ii. Credit Approval Processes credit proposal embodying and complying the
observations of CRMD is placed to Head Office
iii. Credit Risk Monitoring Processes
Credit Review Committee (HOCRC) for review.
iv. Credit Risk Mitigation Processes Upon recommendation of Head Office Credit
193
Review Committee, the competent authority (as per subsequent disbursement, ensuring utilization of
delegated business power) may approve or decline fund, monitoring and compliance of all covenants
the proposal. Managing Director may recommend and conditions precedent. This Department keeps
the proposals which are beyond the Managing constant follow-up of the credits right from its
Director’s delegated authority to the Executive sanction and continues its efforts to ensure timely
Committee / Board of Directors for approval. Upon repayment/recovery so that the disbursed credits
approval, a letter, conveying the sanction of loans, is remain performing and unclassified. Besides, overall
issued in favor of the respective Branch (if declined, portfolio along with industries/sectors concentration
the same is communicated accordingly). of the credit portfolio of the bank is reviewed at
regular intervals and brought to the notice of
iii. Credit Risk Monitoring Process senior level management regarding concentration
risks, geographical distribution, down gradation
Credit Risk Review is conducted at obligor level along with early alert list (if any) for information &
as well as at portfolio level to ensure sound asset their guidance. These coherent activities altogether
quality and adherence to regulatory as well as the enable the Bank to put viable solutions in place to
Bank’s own policies and procedures. The review prevent deterioration in credit quality.
process ensures that a sound and proactive risk
management culture is maintained across the Bank. iv. Credit Risk Mitigation process:
It also aims at continuous improvement of the overall
quality of assets at the portfolio level, by deploying The Bank has adopted the Simple Approach for
appraisal skills, maintaining documentation Credit Risk Mitigation. Under this approach, cash,
standards and complying with the sanction terms lien on deposits, government securities, shares,
and conditions. The primary monitoring is done by landed property, flat, building etc. are considered
branches’ relationship officers/managers as well as eligible collateral. The Bank has formulated
as Head of Branch regarding their performances, detailed guidelines with respect to valuation and
business, transaction and turnover, repayment management of each of these types of collateral. In
behavior etc. order to mitigate risks, the Bank also takes necessary
insurances, guarantees and documents including
Simultaneously, the Credit Administration charge documents. In addition to that, terms and
Department under Credit Risk Management Division conditions under which credit is sanctioned also go
is assigned to look after post approval process such a long way to mitigate risks associated with credit.
as to establish better control over loan portfolio by Regular monitoring and control of accounts also
helping completion of documentation, scrutinizing add up the risk mitigation. Continuous follow up and
the checklist of documents, setting limits and tenor updating of all relevant data/information are also
centrally at Head Office and reviewing pricing of the key factors for mitigation of credit risks.
loans etc. in a systematic manner and allowing
194
a bank with vision
Risk Management
Practices
SEBL operates a strong and independent, growth growth plans are properly supported by
oriented risk management system that contributes effective risk infrastructure
to the sustainability of risk adjusted returns through
implementation of a sound and dynamic risk To assist the Management and executives in
management practice. SEBL’s risk management controlling and co-ordinating of risk taking
philosophy is to identify, measure, monitor and across the business
control as well as manage various risks that are
To manage risk profile to ensure that, specific
related to the Bank’s business, and to optimize risk-
return trade-off. financial indicators remain favorable under a
range of adverse business situation
The Bank always prioritizes management and To design and execute a strategic management
mitigation of all levels of risks in order to build
process for the Bank integrated with global
public trust and confidence which is necessary
for mobilizing private savings for investment to business risk management process
facilitate economic growth. Therefore, effective To define risk management strategies and clear
risk management activities are imperative to the accountabilities and action steps for building
achievement of the business objectives of the Bank
and executing risk management capabilities
and also of the economic growth of the country.
and improving them continuously
Risk Management System To continuously monitor the information
The key elements of sound risk management provided to decision-makers in order to assist
system in SEBL for effective business operations them as they manage key risks and protect the
encompasses the following: interests of shareholders
Active involvement of the Board and Senior
Risk Management and Its Relationship
Management;
with Capital Management
Adequate organization, policies and procedures;
Capital management in a bank usually refers
Appropriate management information systems;
to implementing measures aimed at maintaining
and
adequate capital, assessing internal capital adequacy
Comprehensive internal controls and limits. of the bank and calculating its capital adequacy
ratio. Risk management process is inseparable from
SEBL’s Risk Management Objectives
capital management. Capital management helps
SEBL has clear risk management objectives and to ensure that the bank has sufficient capital
a well established strategy to address them. At to cover the risks associated with its activities. As
strategic level, our risk management objectives are part of the Internal Capital Adequacy Assessment
as follows:
Process (ICAAP), management identifies the risks
that the Bank is exposed to, and determines the
To identify the Bank's material risks means by which they will be mitigated. Capital is
To analyze risks and managing their used to cover some of these risks, and the remainder
consequences by a dynamic interaction among of these risks is mitigated by means of collateral or
the Board, Senior Management and officials other credit enhancements, contingency planning,
engaged in risk taking and risk managing additional reserves and other mechanisms.
activities
To formulate the Bank's Risk Appetite and Basel-III Implementation
ensure that business profile and plans are In compliance with the direction of Bangladesh
consistent with it. To ensure that business Bank the Risk management Division of SEBL
195
was established to monitor risk management maturity mismatches between the asset and liability
activities of the Bank. The responsibility to ensure items on the balance sheet and thereby reduce
effectiveness of the Core Risks Management of The funding and rollover risk. The Bank is required to
Bank is delegated to Risk Management Division maintain NSFR> 100% under Basel III.
(RMD). It is also the responsibility of RMD to ensure
that the capital management of the Bank is done Leverage Ratio
as per Basel Accords and in accordance with the
directives of Bangladesh Bank from time to time. This is a non-risk-based leverage ratio and is
As per the phase wise arrangements for Basel-III calculated by dividing Tier 1 capital by the Bank's
implementation the Bank has started implementing average total consolidated assets (sum of the
Basel III from January 2015. The Bank has taken exposures of all on-balance sheet and off-balance
initiatives to improve the Capital to Risk Weighted sheet items). The Bank is required to maintain a
Asset Ratio (CRAR) in line with the Basel-III guideline. leverage ratio in excess of 3% under Basel III.
Besides, the Bank has also started maintaining
different ratios like Leverage Ratio, Liquidity Stress Testing
Coverage Ratio (LCR), and Net Stable Funding Ratio
(NSFR) as per Basel-III requirement. Stress Testing plays the role of a diagnostic tool in the
context of SRP to improve the understanding of risk
Liquidity Coverage Ratio (LCR) profile of the Bank. It is a part of risk management
policy, which alerts the management of the Bank
Liquidity Coverage Ratio (LCR) refers to high quality
regarding possible vulnerabilities and unexpected
liquid assets held by the Bank to meet short-term
outcomes related to variety of risks. It also provides
obligations. The ratio is designed to ensure that
an indication how much Capital might be needed
the Bank has the necessary assets on hand to ride
to absorb losses if any shock occurs. It is a popular
out short-term liquidity disruptions. The Bank is
method designed for analyzing the resilience of the
required to maintain LCR ≥ 100% under Basel III.
capital of the Bank while addressing its relevant
shortcomings.
Internal Capital Generation Rate:
Bangladesh Bank has advised banks to conduct
The internal capital generation rate (ICGR) is a
quantifiable mathematical rate that portrays how quarterly Stress Testing to measure resilience of
quickly a bank is able to generate equity capital. The the Bank. Therefore as a part of risk management,
higher the internal capital generation rate, the more the Bank prepares stress testing report on quarterly
able a bank is to produce capital in order to provide basis to check out four major risks (interest rate
loans to borrowers that subsequently generate new risk, credit risk, equity price risk, liquidity risk) under
interest income for the bank. In 2018 the internal different magnitude level to ensure optimum
capital generation rate (ICGR) of SEBL was 10.75% allocation of capital across its risk profile. In
which indicates its strong capital base. calculating Stress Testing following analytical tools
are used:
Net Stable Funding Ratio (NSFR) Sensitivity analysis (assesses the impact on an
institution's financial condition of a move in one
Net Stable Funding Ratio (NSFR) is defined as the particular risk factor)
amount of available stable funding (ASF) relative to
the amount of required stable funding (RSF). The Scenario test (considers the impact of
purpose of the NSFR is to ensure that the Bank holds simultaneous moves in a number of risk factors)
a minimum amount of stable funding based on the Duration GAP analysis (the analysis of the gap
liquidity characteristics of its assets and activities in duration between the Bank’s Assets and
over a one year horizon. The objective is to reduce Liabilities)
196
a bank with vision
Prevention of
Money Laundering
Southeast Bank Limited (SEBL) has implemented a risk based AML compliance
program designed to comply with AML laws and regulations in Bangladesh
and other applicable laws and regulations relating to the prevention of money
laundering and terrorist financing in the jurisdiction where the Bank operates
through subsidiaries.
The AML program consists of, among other things: 10. The stipulation for record keeping & reporting
of AML & CFT related activities to regulatory
authority on demand; including records
1. Risk based KYC in the core banking system;
obtained pursuant to customer on boarding &
2. AML risk assessment at the customer, product consequent transactions, which are maintained
& service level; for at least 5 years after the termination of a
3. Written policies, procedures and a system of customer relationship
internal control designed to facilitate ongoing
compliance with applicable AML laws and SEBL’s AML Risk Management Framework is
regulations; established on three components: governance,
4. Risk based policies and procedures for policies and processes. Governance starts with the
monitoring transaction activities through Board of Directors, which reviews and approves risk
customers’ accounts; policies and processes prescribed by regulatory
5. Identification and reporting of suspicious authorities. SEBL’s AML Risk Management
transactions/activities to regulatory authorities Framework includes CCC (Central Compliance
in accordance with applicable laws; Committee) which is led by an Additional Managing
Director, CAMLCO. SEBL’s CCC directly reports to
6. AML training for officers at Head Office and
Branch level; the Managing Director. SEBL has established Anti
Money Laundering Division headed by an Executive
7. Self assessment to review and assess the bank
Vice President, DCAMLCO.
for compliance with the AML program, laws and
regulations;
CCC reviews and monitors the Bank's compliance
8. Independent audit and compliance testing with the circulars, policies & guidelines of regulatory
functions to review and assess the bank for
authorities. The AMLD under supervision of CCC
compliance with the AML program, laws and
ensures implementation of AML and CFT Program
regulations;
of the Bank.
9. Prohibition from conducting business with shell
banks;
197
Information Technology
(IT) and Cyber Security Measures
The use of information and communication established its Far DC (second DRS) at Jessore which
technology (ICT) in the banking industry has is located in a separate seismic zone. Now live Data
witnessed tremendous growth over the last couple is being replicated from main DC to near DC (Uttara
of years and it has become the main enabler/driver DRS) and then to Far DC at Jessore.
of the banking business. ICT is greatly contributing
to improve operational efficiency and effectiveness IT infrastructure has grown and core banking
of the banking services. The bank is designing and applications have evolved over a period to cater to
developing different banking products, diversifying heterogeneous business needs of the Bank. Design
customer service delivery through introducing and development of different banking products
alternative delivery channels and reducing operating and introduction of new banking services are being
expenses reaping the benefits of ICT. Through done from time to time to meet and fulfill current
ICT, the bank is streamlining business processes; business demand. However, further expansion of
making managerial decisions which have further information technology should be aligned with the
strengthened competitive position of the Bank in expansion of the business growth. Therefore, it has
the rapidly changing market. As investments in been felt necessary to conduct assessment and
technology platforms have increased manifold, review of current IT infrastructure and applications
alternative delivery channels, like ATM and POS of the Bank to define future strategy and roadmap by
terminal, Internet Banking, Mobile App, Mobile an independent IT Advisory and Consulting service
Financial Service (MFS) have flourished. Therefore, provider. Work in this regard will be completed
different segments of customers are doing financial soon.
transactions and accessing to various products and
services conveniently, which is further accelerating The Bank has performed due diligence for
financial inclusion of the un-banked people of the assessment of IT security and risk as part of its
country. continual efforts to minimize /mitigate internal
and external frauds using IT systems and prevent
This year the Bank restructured its core IT cyber threats. Multiple layers of security solution
infrastructure and deployed a few software for Network, Mailing System, Web/Internet access
for further automation of different business and the endpoint devices have been deployed and
operations. These are mainly, i) e-Tendering System latest security Patches/Fixes have been applied to
for the tenderer to submit their responses of RFP/ several banking application software, databases and
RFQ (Request for Purchase/Quotation) through network devices. The Bank has further strengthened
online portal, ii) Centralized Credit Processing its IT Security Unit through recruitment of additional
and Disbursement System (CDMS), iii) Centralized human resources. Officials of the IT Division have
Foreign Trade operation for Non-AD Branches, etc. attended several training/workshops to enhance
their skills and competencies. IT Security Audit has
The Bank has established its main Data Center been conducted by internal and external IT Audit
(DC) at Dilkusha C/A and Disaster Recovery Site and Inspection Team including inspection team
(DRS) at Uttara. This year DR test was conducted, from Bangladesh Bank. Accordingly steps have
in which Core Banking operation was made live been taken for rectification of identified weaknesses
from Uttara DRS and transactions were performed and related issues in IT operation and service
from different branches. However, according to the delivery. Periodically, Vulnerability scanning has
ICT Security Guideline of Bangladesh Bank, it has been executed by IT Security Team on different IT
been mandated to setup far DC (second DRS) in a services/applications and identified flaws have been
separate seismic zone for prevention of data loss in mitigated as far as cyber security is concerned. The
case of any major natural calamity, like earthquake. Bank is committed to providing better services to its
Considering the major impacts and as part of the customers with reliability, and added security.
Business Continuity Plan (BCP), the bank has also
198
a bank with vision
Credit
Rating
Credit Rating Information and Services Limited (CRISL) has reaffirmed the
long term rating of Southeast Bank Limited at AA (Pronounced as Double
A) and the short term rating at ST-2 based on audited financials up to
31st December, 2017 and unaudited financials up to 31st March, 2018 and
other relevant qualitative as well as quantitative information up to the
date of the rating.
Surveillance Rating
Explanation
Rating (2016) Rating (2017)
The Bank being rated AA (High Safety) in credit rating is

Long Term
Long Term adjudged to be of high quality, offers higher safety and has
AA
AA high credit quality. This level of rating indicates a corporate
Double A( High
Double A( High Quality entity with a sound credit profile and without significant
Quality and High
and High Safety) problems. Risks are modest and may vary slightly from
Safety)
time to time because of economic conditions.
The Bank being rated ST-2 (High Grade) in the short term in
Short term Short term credit rating is considered to have high certainty of timely
ST-2 ST-2 payment. Liquidity factors are strong and supported by
High Grade High Grade good fundamental protection factors. Risk factors are very
small.
Outlook Stable
Date of Rating June 28, 2018
Validity Up to June 27, 2019
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Capital
Plan
Capital planning helps the Bank determine how much capital it needs to
continue its growth and produce meaningful earnings as well as meet regulatory
requirements. The Bank is committed to maintain a strong capital base to
support its business growth and to have a cushion to absorb any unforeseen
shock, complying with all regulatory requirements, along with obtaining good
credit rating and CAMELS rating.
SEBL annually conducts an integrated strategic the Board. We submit a report to the Board that
planning process which lays out the development details how much capital is needed, when it will
of our future strategic direction for our business be needed, various methods of raising capital, the
areas. The strategic plan aims to create a holistic current environment for raising capital, the Bank’s
perspective on capital, funding and risk under value to others, the best way to protect/enhance
risk-return considerations. This process translates shareholder value and the likely pricing of capital.
our long-term strategic targets into measurable
short-term to medium-term financial targets and The Bank monitors regulatory developments very
enables intra-year performance monitoring and closely to ensure strength of capital position that
management. Thereby we aim to identify growth exceeds the minimum regulatory requirements and
options by considering the risks involved and the remains within the limits of risk appetite as well as
allocation of available capital resources to drive consistency with the market expectations.
sustainable performance. Risk-specific portfolio
strategies complement this framework and allow Stress Test and Capital Planning
for an in-depth implementation of the risk strategy
on portfolio level, addressing risk specifics including Bangladesh Bank regulations require stress tests to
risk concentrations. evaluate whether an institution has sufficient capital
to continue its operation during periods of adverse
Our planned long-term capital structure is designed economic and financial conditions. The rules also
to meet regulatory and market expectations. We limit the Bank’s ability to make capital distributions
believe that our long-term targeted capital structure to the extent its actual capital issuances were less
enables us to invest in and grow our business, than amounts indicated in its capital plan.
satisfy our customers’ financial needs in varying
environments, access markets, and maintain SEBL operates a comprehensive stress testing
satisfactory return on capital to our shareholders. program that supports our risk management and
Our long-term targeted capital structure also capital planning. Our stress testing is supported by
considers allocation of capital levels sufficient to dedicated team and infrastructure, and is overseen
exceed capital requirements. Our capital targets are at the most senior levels of the Bank. Our stress
subject to change based on various factors, including testing program assesses our capital strength
changes to the regulatory capital framework. through a rigorous examination of our resilience
to external shocks. It also helps us understand
Regular reporting of actual and projected capital and mitigate risks and informs our decisions about
and leverage ratios, including those in stressed capital levels.
scenarios, is undertaken and submitted to the
Executive Risk Management Committee (ERMC), On an annual basis, strategic business and capital
SRP (Supervisory Review Process) team, ALCO, plans are drawn up covering a five year horizon and
SMT, Board Risk Management Committee and are approved by the Board. The capital plan ensures
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a bank with vision
that adequate level of capital and an efficient mix of Available supply of capital and capital raising
the different components of capital are maintained options
to support our strategy and business plans. Capital
planning takes the following into account: Capital Requirement under Basel III
Current regulatory capital requirements and Southeast Bank adopted the Basel III framework
our assessment of future standards introduced by the Central Bank. It came into effect
on January 2015 and the Bank has been compliant
Demand for capital due to the business and
with the minimum requirements from that date. The
loan impairment outlook and potential market
phase-in arrangements for Basel III implementation
shocks or stresses
is as follows:
Particulars 2015 2016 2017 2018 2019
Minimum Common Equity Tier-1 (CET-1) Capital Ratio 4.50% 4.50% 4.50% 4.50% 4.50%
Capital Conservation Buffer - 0.625% 1.25% 1.875% 2.50%
Minimum CET-1 plus Capital Conservation Buffer 4. 50% 5.125% 5.75% 6.375% 7.00%
Minimum T-1 Capital Ratio 5.50% 5.50% 6.00% 6.00% 6.00%
Minimum Total Capital Ratio 10.00% 10.00% 10.00% 10.00% 10.00%
Minimum Total Capital plus Capital Conservation Buffer 10.00% 10.625% 11.25% 11.875% 12.50%
The Funding Plan is also developed to ensure we future. The results of stress tests have confirmed the
have a credible plan to manage the future demand Bank’s substantial capitalization. Our capitalization
and supply of funds in a prudent yet commercially makes us resilient and ensures that we are well
effective manner. positioned to meet upcoming capital requirements
as well as to continue to grow our business.
The Bank is well positioned to comply with the
requirements that are subject to phase-in rules To ensure sustainable growth in coming years and
within 2019 as per the above table. As the Bank is to strengthen the capital base further, recently the
actively considering to improve its Tier-I and Tier-II Bank issued a Basel III compliant Tier II Subordinated
capital base, the future minimum requirements are bond for Taka 5,000 million to raise Tier-II Capital of
expected to be well complied. the Bank. Besides, the Bank is able to accumulate
additional capital through the reduction in Risk
Southeast Bank is adequately capitalized and has Weighted Assets, accumulation of profits over time.
sufficient buffers to ensure a going concern even The Bank is also able to manage the demand for
under adverse conditions. The Bank performs stress capital through management actions including
tests to verify that it is sufficiently capitalized to adjusting its lending strategy through business
withstand adverse events caused by material risks disposals.
arising from its business strategy at present and in
201
Statement of
Non-Performing Loan
Non-performing loans (NPLs) refer to those financial assets from which banks no
longer receive interest or installment payments as scheduled. They are known
as non-performing because the loan ceases to perform or generate income for
the bank. Southeast Bank follows the rules and regulations of loan classification
as per policy of Bangladesh Bank. As per directives of Bangladesh Bank, loans
and advances are classified on objective basis and qualitative judgment. In
objective criteria, loans are classified as Standard, Special Mentioned Account
(SMA), Substandard, Doubtful and Bad and Loss based on the number of past
due days. On the other hand, in qualitative judgment, loans are classified based
on any doubt of recovery of loans in time due to sudden distressful financial
conditions of the client, any bad/weak signals in business or industry, death of
the client etc.
Minimizing non-performing loan is a tough of credit crunch and it would result the shrinkage of
challenge for the Bank. Bank’s profitability, the real economy.
strengths, eminence, reputation and ratings are
highly dependent on quality of assets. With this Industry Scenario of Non-Performing
end in view, maintenance of asset quality has been Loans
given top priority by minimizing non-performing
assets through early detection, monitoring, Banking sector is reeling under bad loans and
taking corrective actions, shared information and heavy provision burden. Banks in Bangladesh has
disclosures to keep future recurrence in check. The suffered from high levels of non-performing loans
process of continual review of weak loans enables (NPLs) in 2018. To a certain extent, Southeast Bank
the bank to monitor the quality of the loan portfolio is also exposed to this problem. A higher percent of
and to take remedial action to counter deterioration NPLs indicates that banks had difficulty in collecting
in the quality of portfolio. interest and principal on their credits. However,
the NPL ratio came down due to all out efforts to
Impact of Non-performing loans: realize default loans and rescheduling of loans at
the eleventh hour of election. Though the overall
Non-performing loans is treated as undesirable economic growth improved in 2018, the banking
outputs which decrease the bank’s performance. sector continued to face challenges arising from
Prudent risk assessment and creation of adequate deteriorating asset quality.
provisions for classified loans can be a cushion for
the bank’s against risk. However, when the level Classification Status of Credit Portfolio
of non-performing loans (NPLs) is very high, the
provisions are not adequate for protection. High Southeast Bank strictly follows the rules and
level of non-performing loans severely damages regulations of Bangladesh Bank regarding
the confidence in the banking system. If a bank classification of loans and advances of the Bank.
loses public confidence, it will lose domestic deposits In case of need, the Bank classifies some loans on
and will find itself unable to rollover short term qualitative judgment too. Our management always
external borrowing. Due to shrinkage of deposits remains vigilant to arrest new loans from being
and impairment of the capital, the bank will not be in classified, minimize the existing non-performing
a position to lend. This will lead to the phenomenon loans by way of cash recovery and regularize
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a bank with vision
through rescheduling in the deserving cases under Provisioning

the purview of Bangladesh Bank’s guidelines. Amid
adverse trend of loan classification, Southeast The Bank continuously reviews its loan portfolio
Bank could restrict its classified loan position to in order to rightly assess the amount of non-
BDT 15,558.85 million which was 5.87 percent of performing loans and advances and provision
total loans and advances as on December 31, 2018. required thereagainst. The Bank creates specific
The status of unclassified and classified loans of the provision against Non-Performing Loans (NPLs)
bank (solo) as on December 31, 2018 was as follows: and general provisions against performing loans
including off-balance sheet items in accordance
Amount with the guidelines and directives of central bank
Status BDT in Percentage
and the same is charged to the profit and loss
Million
account. Provisions are held against expected
Unclassified Loans
as well as unexpected losses. While assessing
Standard 240,083.55 90.53 this requirement, various factors including the
Special Mention Account 9,561.81 3.60 delinquency in the account, financial position of
Sub-Total 249,645.36 94.13 the borrowers, the value of securities and the
requirements of the Prudential Regulations are
Classified Loans
considered. At the end of every quarter, the Bank
Sub-Standard 171.21 0.06 meticulously ensures maintenance of both general
Doubtful 359.64 0.14 and specific provisions. Sometimes, the Bank
Bad/Loss 15,028.00 5.67
keeps additional provision to protect interest of all
stakeholders.
Sub Total 15,558.85 5.87
Grand Total 265,204.21 100.00 Recovery:
Non-Performing Loan Ratios: The quality of asset has been one of the prime focus
areas of the Bank. The inspiring recovery against
Strict implementation of Credit Risk Management non-performing loans during the year reflects the
guidelines coupled with strong recovery and prudent prudent strategic focus of the Bank. Cash recovery
provisioning approach has enabled the Bank to positions in 2018 against non-performing loans of
keep a check on quality of its assets. Southeast the Bank are depicted below:
Bank has made reasonable recovery in 2018. As a
result, the Non-performing Loan (NPL) ratio of the
Bank has improved to 5.87 percent as at December Sl Amount BDT
Particulars
31, 2018 which was 5.99 percent as at December No. in Million
31, 2017. Side by side, the Gross Non-Performing
Loan Coverage ratio of the Bank has improved from 01. Recovery against Classified Loans 1,068.21
72.55 percent as at December 31, 2017 to 85.37
percent as at December 31, 2018. Different ratios of
02. Recovery against Written-off loans 404.81
non-performing loans of the Bank as on December
31, 2018 stood as follows:
03. Recovery through Court cases 606.50
SL
Parameter/Particulars Percentage
No Loan Write-off
Gross Non-Performing Loan (NPL)
01 5.87 Impaired loans are written-off when there is
Ratio
less prospect of recovery of part or the entire
02 Net Non-Performing Loan (NPL) Ratio 1.35 loan in a shorter span of time. Bangladesh Bank
introduced this system by issuance of guidelines
Gross Non-Performing Loan (NPL) vide BRPD circular #02/2003 dated January 13,
03 Coverage (Specific Provision + General 85.37 2003. Southeast Bank started writing off of loans
Provision)/ Gross NPL
since 2004 complying Bangladesh Bank’s guidelines.
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Southeast Bank has established a separate division Two high level “Taskforces” for recovery of
namely “Special Asset Management (SAM) Division” classified loan and written-off loans have
for managing non-performing loans especially been constituted comprising the officials of
written-off loans. Head Office and Branch headed by Additional
Managing Director of the bank. Taskforce
Strategies for Managing Non- actively reviews the recovery position of those
performing Loans loans in their periodic meeting and gives
necessary directions/guidelines to gear up the
Strengthening Monitoring of credit portfolio recovery process.
both at Portfolio and individual level; Concerned Officials of Head Office regularly
Ensuring strict implementation of Credit Risk visit the branch located in different parts of
Management Guidelines; the country and meet the defaulted clients to
find out ways for settlement/adjustment of bad
Ensuring proper documentation before
loans of the bank.
disbursement of credit facilities;
Employing all out effort to recover non- Defaulted Clients are continuously pursued
performing loans; jointly by the Branch and the Head Office officials
through letters, phone calls, visits to their place
Centralizing of disbursement of credit facilities
of business and residence and holding meetings
at Head Office;
at Head Office and the branches.
Fixing annual target for recovery and follow up
After exhausting all the avenues to recover the
the achievement on monthly basis.
classified loans law suits are filed with Artha
Preparing account wise strategy to recover Rin Adalat as well as CMM Court to recover
Banks past dues in shortest possible of time. non-performing loans. All cases are properly
Selecting priority wise customer where chances followed up jointly by the Branch and Head
of recovery are high based on amount of Loan. Office.
Negotiating with the client for recovery outside Court cases are constantly monitored through
the court. the panel lawyers of the bank. In case of need,
Accelerating recovery drive through prudent senior lawyers are appointed to conduct the
use of Artha Rin Adalat Act, filing Criminal court cases of the Bank. Efforts are given to
Case, Settlement Arrangement, attachment of recover bad loans through early disposal of
property, Recovery drives etc. court cases.
Reconstitution of three Taskforces for recovery A special team has been constituted comprising
of non-performing loans including rescheduled, the 03-officials of Legal Affairs Division at Head
classified and written-off loans. Officpe & 03-officials of the concerned branch
to follow up early disposal of big cases of the
Initiatives for recovery of Non- branch.
Performing Loans (NPL) Efforts are being taken to settle/adjust the
At the beginning of the year the bank loan outside the court through negotiation/
Management sets branch-wise targets for persuasion with the defaulted clients.
recovery of classified loans. The Head Office Considering the client’s business/financial
Management and the special Taskforce condition, long drawn legal procedures, time
regularly monitor/review the recovery activities value of money concept, several measures like
of the branches and give necessary guidelines/ longer repayment period, concessional interest
assistance to achieve the recovery target of the rate and in few cases settlement arrangement
branches. with waiver of a portion of interest are allowed
to recover the loans.
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a bank with vision
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Report on Risk Management Framework,

Mitigation Methodology and Risk
Reporting by Chief Risk Officer
Over the last decade, risk

management approaches
and practices in the financial
industry have evolved
substantially and risk
management practices are
accepted by the financial
institutions enthusiastically.
The safety and soundness
of financial institutions
rely on the effectiveness of
risk oversight and control
functions. To implement
this, SEBL introduced a
strong and disciplined
risk management culture
and accepted by all the
employees of the Bank. A
key aspect of this culture
is that the Bank is well-
diversified across business
lines, countries, products,
and industries.
The primary goals of risk management are to ensure the reports of its findings have been placed to the
that the outcomes of risk-taking activities are Board of Directors. The self-assessment report for
predictable and consistent with the Bank’s strategies the year 2018, confirmed that risk management
and risk appetite. There must be an appropriate practices of the Bank of all core risk areas achieved
parity between risk and return in order to maximize above or equal to ‘Satisfactory Level’ (scale defined
and protect shareholders’ interest. In 2018, the by BB). Moreover, subsidiaries of the Bank are also
Bank reviewed the world’s macro economic outlook in compliance with the Bank’s risk management
together with the country’s business and economy framework. The Bank’s risk management framework
to produce Risk Appetite of the Bank. Moreover, is applied on an enterprise-wide basis and consists
the Bank conducted a self-assessment on the of three key elements:
implementation of core risks management and
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a bank with vision
i) Risk Governance managed in relation to that appetite. The Bank’s Risk

Appetite Framework consists of four components
ii) Risk Appetite and combines qualitative as well as quantitative
terms of reference to guide the Bank in determining
iii) Risk Management Technique
the amount and types of risk it wishes to prudently
undertake. The components are:
i) Risk Governance
a) The Board of Directors Risk Management Principles

Strategic Principles
The Bank’s risk management governance structure
Governing Financial Objectives
begins with oversight by the Board of Directors,
either directly or through its committees to ensure Risk Appetite Measures
that decision-making is aligned with the Bank’s risk
appetite. The Board receives regular updates on the iii) Risk Management Techniques
key risks of the Bank – including a comprehensive
summary of the Bank’s risk profile and performance The Bank’s risk management techniques are guided
of the portfolio against defined goals, which are by the Bank’s risk appetite framework, integrated
presented quarterly to the Board Risk Management with the Bank’s strategies and business planning
Committee. The Board approves key risk policies, processes. The risk management technique
limits, strategies, and risk appetite. The Bank’s includes: measurement, monitoring and reporting
Internal Audit Department reports independently of risk, providing strategies, policies and setting up
to the Board (through the Audit Committee) on the limits, introducing guidelines and processes.
effectiveness of the risk governance structure and
risk management framework. The above framework is to establish a sound system
of risk management supervision and internal
b) Management control to identify, assess, monitor and manage
material risks related to conduct of Bank’s activities.
The Managing Director (MD) and the Chief Risk The main objectives are to: constantly improve
Officer (CRO) are responsible for risk management the management of risk, better understand the
under the direct oversight of the Board. Being reward-to-risk balance and reduce the risks to an
CRO, I oversee the Risk Management Division of acceptable level.
the Bank and chair the Executive Risk Management
Committee. The Risk Management Division acts as
the secretariat of the Risk Management Committee
of the Board and directly reports risk issues to it.
ii) Risk Appetite

S. M. Mainuddin Chowdhury
The Bank has clear articulation on the Bank’s risk Additional Managing Director
appetite and how the Bank’s risk profile will be & Chief Risk Officer
207
Risk
Management
The objective of the Bank is to provide a satisfactory return to shareholders
and to manage risks in line with the accepted risk profile. To ensure this, SEBL
has established risk management policies designed to confirm that these risks
are identified, measured, controlled, monitored and reported appropriately.
There is a strong relationship between risk and return. Southeast Bank has
been maintaining a parity between risk and return by setting a systematic and
professional method defined by the Basel Committee as well. Throughout its 23
years, risk management has always been a priority for the Bank. In 2018, major
progress has been made to anticipate and to meet the big challenges faced
against a constantly shifting economic, social and regulatory background.
The Bank is focused on building the future through all risk types is a part of risk identification,
a forward-looking management of all risks, while assessment and management processes.
safeguarding the present through a robust control
environment. The Risk Management Division strives Risk Transparency: All risks are identified,
to ensure that risk management is implemented documented and discussed in order to obtain a
correctly and it is in line with all legislation and good understanding of the Bank’s exposures.
match the best practices in the market. The Bank’s
risks function is based on the following pillars: Independent Risk Control: This is the
structured process of identifying, measuring,
Risk Appetite: The Risk Appetite Statement monitoring and reporting risk wherein the
is based on the risk strategy and defines the risk management departments operate
types and levels of risk which the Bank is willing independently of the commercial activities.
to accept to achieve its business objectives and
is essential for achieving long term sustainable Three lines of defence
results.
Risk Management is effective when all the regulatory
Risk Policy: The Bank’s risk policy is aligned principles and guidelines are implemented and
with its strategy and business model that takes creates and protects value of the organization
on board the recommendations of supervisory as an integral part of all of the organization’s
bodies, regulators and best market practices. processes. Southeast Bank builds its approach to
risk management on the concept of three lines of
Management Accountability: Different defence, signifying a clear division of responsibilities
departments are individually accountable for the between the risk owners and control functions.
risks associated with their operations. A balance
is being preserved between risk and return, The risk management of the Bank is based on a
within the boundaries defined by the relevant sophisticated risk process with following three lines
risk limits. The forward-looking approach for of defence:
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a bank with vision
Manage risks/implement actions to manage and treat risk
1st Line of Comply with risk management process

Business Unit
Defense
Management/ Implement risk management processes where applicable
Branches
Execute risk assessments and identify emerging risk
Establish policy and process for risk management

Strategic link for the enterprise in terms of risk
Provide guidance and coordination among all risks
Risk Management Identify enterprise trends, synergies, and opportunities for change
2nd line of
Division of Head
Defense Initiate change, integration, operationalization of new events
Office
Liaison between third line of defense and first line of defense
Oversight over certain risk areas (e.g. credit, market) etc.
Provide oversight on risk-management content/processes, followed by

second line of defense (as practical)
Provide assurance that risk-management processes are adequate and
3rd Line of
Internal Audit appropriate
Defense
The third line of defense is not involved in developing, implementing or
operating the risk management function or other first or second line of
defense functions.
The risk Management at Board level
Three separate committees of Board namely: Executive Committee, Audit Committee and Risk
Management Committee are responsible for risk management and operations of the Bank.
Executive Committee of the Board:

The executive committee can take all necessary decisions or can approve cases within power
delegated by the Board of Directors. However, All decisions taken in the executive committee
should be ratified in the next board.
Risk Management
Audit Committee of the Board:
Structure
The audit committee assists the Board in fulfilling its oversight responsibilities. The committee
reviews the financial reporting process, the system of internal control and management of
financial risks, the supervision of the audit process, and the Bank's process for monitoring
compliance with laws and regulations.
Board Risk Management Committee:

Board Risk Management Committee is responsible for mitigating risks arising from strategies
and policies formulated by the Board.
209
Risk Management Committees and reporting line:
Board of
Directors
Board Risk
Management
CEO/MD
Committee
(BRMC)
Executive
Chief Risk Officer Risk
(CRO) Management
(Head of RMD) Committee
(ERMC)
Credit Market Liquidity Risk Basel

Operational
Risk Risk Risk Research Implementation
Risk Desk
Desk Desk Desk and Policy Unit
The Risk Management of the Bank has risk oversight environmental risk is one of the major risks that
for the following core risk areas: has been considered as an integral part of credit
risk. The Bank’s risk management processes,
1. Credit Risk Management policies and mitigations of the core risks along with
environmental risk are described below:
2. Asset-Liability Risk Management
3. Foreign Exchange Risk Management 01. Credit Risk Management
4. Internal Control and Compliance Risk
Management Credit risk is the potential risk that the counterparty
will cause a financial loss to the Bank due to its
5. Money Laundering Risk Management inability or unwillingness to meet its contractual
6. Information and Communication Technology obligations. This has traditionally been the greatest
Risk Management risk that lending institutions face and is usually
the one for which the most regulatory capital is
Apart from the core risks mentioned above, the required. The credit risk management function is
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a bank with vision
responsible for ensuring that the Bank’s credit risk targets. With this end in view, the network of the
is satisfactorily managed. The main objective of Bank has been expanded across the country to
the credit risk management process is to identify, diversify the credit portfolio of the Bank through
assess, measure, monitor and mitigate all types of balanced growth of credit in different productive
risks associated with credit exposure of the Bank. and promising sectors.
The Bank has established a credit risk management
framework to manage credit risk at individual as well ii. Credit Approval Process
as portfolio level.
The Credit Officer at Branch level acts as relationship
Southeast Bank has a comprehensive credit risk Officer and held responsible to ensure the accuracy
management policy. Credit Risk Management of the entire credit application/ proposal submitted
process of the Bank is articulated through several for approval. A thorough credit and risk assessment
Board approved policies viz. Risk Appetite Statement, is conducted prior to granting of any loan. The
Credit Risk Management Policy, Delegation of Corporate Banking Division, SME & Agricultural Credit
Business Powers of individual Executives/Officers Division, Islamic Banking Division, Retail Banking
for loans and advances, Valuation Methodology, Division of Head Office are actively involved in
Standardized Recovery/collection Procedure etc. scrutinizing, analyzing, assessing and processing the
The Bank measures, monitors and manages credit credit proposal. These divisions at Head Office have
risk at individual borrower level and at the portfolio been managed by three senior level executives for
level as well. The Bank’s structured and standardized ensuring more intensive and in-depth care of credit
credit approval process includes a well-established operation. The Credit Risk Management Division is
procedure of comprehensive appraisal based on the involved in evaluation and in-depth analysis of risks
guidelines of Credit Risk Management Policy of the associated with the individual borrower and find
Bank and rules and regulations of Bangladesh Bank out the mitigating factors to minimize those risks.
and other regulatory authorities. This policy is being The respective credit officers of Head Office further
reviewed and updated annually incorporating the process the proposal embodying and complying
new instructions of regulators, considering the global the observations of CRM and place the proposal
and local economic trend and based on appetite of to Head Office Credit Review Committee (HOCRC)
the Bank. Bank’s Credit Risk Management practices for decision. Upon recommendation of Head Office
are based on policy directives duly approved by the Credit Review Committee, the competent authority
Board which, inter-alia, encompasses the following: (as per delegated business power) may approve
or decline the proposal. Managing Director may
i. Credit marketing recommend the proposals which are beyond the
Managing Director’s delegated authority to the
ii. Credit approval processes Executive Committee / Board of Directors as per
iii. Credit Risk monitoring processes delegation for approval/ decision. Upon approvals
iv. Credit Risk mitigation processes a letter conveying the sanction of loans, is issued in
four copies (for the Branch, CAD, ICCD and Corporate
i. Credit Marketing Banking) by the credit approval Department of CRM.
(if declined, the same is communicated accordingly.)
All the branches are the ambassadors of the Bank
located at the door step of the customers and iii. Credit Risk Monitoring Process
they are the primary contact point with the clients.
Branch officials and Direct Sales Executives promote The Credit Risk Monitoring activities of the Bank aim
the business of the Bank and sell the products and at ensuring that there is no undue deterioration
services to the prospective customers. They contact in quality of individual assets within the portfolio.
with the potential clients and park them to the Bank It also aims at continuous improvement of the
as per the directives of Head Office in line with the overall quality of assets at the portfolio level, by
Credit Risk Management Guidelines, annual sectoral deploying appraisal skills, ensuring adherence
allocation, strategies and policies to achieve the to credit basics/lending guidelines, maintaining
211
documentation standards and complying with the 02. Asset-Liability Risk Management
rules and regulations of regulatory authorities while
leaving enough room for flexibility and innovation. The objective of Asset Liability Risk Management
The primary monitoring is done by branches’ (ALM) of the bank is to properly manage the risk
relationship officers, Head of Branch regarding their arising from due to mismatches between assets and
performances, business, transaction and turnover, liabilities either due to changes in liquidity, interest
repayment behavior etc. rate and foreign currency rate movement in the
domestic and international market. ALM is a set of
Simultaneously, the Credit Administration tools that ensures value creation for the shareholders
Department under CRM Division is assigned to look in a regulated environment maintaining a good
after post approval process. This department focuses tradeoff between risk and return. As the banking
on establishing better control over loan portfolio by sector is now concentrating more on liquidity and
helping completion of documentation, scrutinizing interest rate risk management along with rates of
the checklist of documents, setting limits and tenor return on capital and its assets than overriding efforts
and pricing of loans etc. in a systematic manner. for balance sheet expansion; proper ALM structure
It allows subsequent disbursement, ensuring and risk management framework are indispensable.
utilization of fund, monitoring and compliance Our main focus of ALM is to keep the risk of doing
of all covenants and conditions precedent. This business within the limit side by side ensuring that
Department keeps constant follow-up of the the risk which has been taken is properly measured,
credits right from its sanction and continues its managed and informed.
efforts to ensure timely repayment/recovery so
that the disbursed credits remain performing
Liquidity Risk
and unclassified. Besides, overall portfolio along Liquidity risk refers to the risk of a bank’s inability to
with industries/sectors concentration of the meet its financial obligations as they fall due without
credit portfolio of the Bank is reviewed at regular incurring unacceptable costs or losses through
intervals and brought to the notice of senior fund raising and assets liquidation. Liquidity risk
level management regarding concentration risks, can also arise due to Bank’s incapability to manage
geographical distribution, downgradation along with unexpected decrease or change in funding sources.
early alert list (if any) for information and guidance. Liquidity risk management concerns the discipline
These coherent activities altogether help the Bank of ensuring that a bank remains sufficiently liquid at
to maintain sound health of the credit portfolio and all times and under every market conditions. It can
to attain a sustainable growth. negatively affect the earnings and growth potential
of the organization if the liquidity position constrains
iv. Credit Risk Mitigation process: a bank from undertaking a transaction at normal
The Bank makes all possible efforts to mitigate risks market rates/prices.
associated with credit accounts through screening
and selection of borrowers, assessment of optimum Measurement and mitigation of
requirement of fund, structuring of the facilities, in- Liquidity Risk:
depth market analysis, arrangement for suitable
collateral, guarantors, insurance coverage etc. Southeast Bank has a well established liquidity
wherever it is considered feasible and desirable. In contingency plan in line with the Bangladesh Bank
addition to that, terms and conditions under which guidelines that establishes an appropriate and
credit is sanctioned also go a long way to mitigate properly controlled liquidity risk environment. The
risks associated with credit. Regular monitoring and ALCO, which oversees the liquidity and other risks
control of accounts also add to risk mitigation. In of the bank, manages the liquidity by ensuring the
order to mitigate risks, the Bank takes necessary following:
guarantees and documents including charge
Preparing Structural Liquidity Profile (SLP) of
documents. Continuous follow up and updating of
Assets and Liabilities in different time buckets
all relevant data/information are also the key factors
as per Bangladesh Bank Guideline.
for mitigation of credit risks.
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a bank with vision
By setting certain limits in net inflow in different Income of the bank. Where rate sensitive assets
time buckets guided by Bangladesh Bank are more than rate sensitive liabilities (i.e., positive
directives and internal policy of the bank. gap) an increase in interest rate will impact the Net
Interest Income positively and vice versa.
By maintaining a liquidity buffer in the form of
unencumbered high quality liquid assets that
We use another gauge to measure IRR is Duration
can be used, without impediment, to obtain
Gap Analysis which is used to predict the likely
funding in times of stress;
impact of interest rate movements on the net worth
By maintaining a vibrant participation in the of the bank. By changing the durations of assets
inter-bank market by regular borrowing and and liabilities we try to obtain the desired impact of
lending side by side maintaining credibility and interest rate movements on the Balance Sheet of
good reputation with the depositors / lenders to the Bank.
make sure that liabilities matured are promptly
renewed. 03. Foreign Exchange Risk Management
Diversification in the sources (including
Foreign exchange risk is the risk that a long or short
counterparties, instruments, currencies and
position in the banking book or in the trading book
markets) and tenor of funding, and regular
in foreign currency may render a loss due to an
review of concentration limits helps us to rein in
adverse movement in exchange rates. Typically, a
the liquidity risk of the bank.
depreciating currency leads to gains from assets
The BASEL III guideline provided two effective and losses from liabilities whereas an appreciating
monitoring tools to measure the liquidity currency results in the opposite. In the foreign
namely: Liquidity Coverage Ratio (LCR) and Net exchange business, banks also face the risk of
Stable Funding Ratio (NSFR) which our bank has default of the counter parties or settlement risk. The
been maintaining from the beginning. foreign exchange positions arise from the following
activities:
Interest Rate Risk
Trading in foreign currencies through spot,
Interest rate risk is one of the main risk disciplines forward and option transactions as a market
maker or position taker, including the un-
in the market risk category which arises due to
hedged positions arising from customer-driven
fluctuations in the interest rates in the market. It can
foreign exchange transactions;
pose a serious threat to the capital base of the Bank
and the net interest income (NII) by altering rate Holding foreign currency positions in the
sensitive income and expenses. Changes in interest banking book (e.g. in the form of loans, bonds,
rates also affect the underlying value of the assets deposits or cross-border investments); or
and liabilities of the Bank because the present value
Engaging in derivative transactions that are
of future cash flows changes when interest rates
denominated in foreign currency for trading or
change. Interest Rate Risk, if assumed correctly, can
hedging purposes.
be an important source of profit and share value.
However, taking excessive Interest Rate Risk can A common approach to measuring and monitoring
lead to capital erosion and shareholder value by exchange rate risk is to limit the size of the open
affecting the net interest income of the Bank. positions (whether positive or negative) in each
currency as of the close of business each day.
Measurement and Mitigation of Management's principal goal shall be to ensure
Interest Rate Risk: that foreign exchange losses that could arise from
the open positions will not substantially diminish
Effective Interest Rate Risk management is a key total earnings and that the capital cushion of the
component of earnings, capital preservation, and institution will not be undermined.
growth. We measure Interest Rate Risk (IRR) through
Gap Analysis of Rate Sensitive Assets and Liabilities Bank has formulated a Foreign Exchange Risk
to estimate the probable impact on Net Interest Management Manual as per the guidelines given by
213
Bangladesh Bank to measure, monitor and control Internal Control and Compliance Division
different foreign exchange risks. Apart from this (ICCD) of Southeast Bank is independent, acting
manual, Bank also applies other standard tools to autonomously and professionally in conformity
minimize foreign exchange risks, some of which are with regulations in force and overall guidelines for
given below: the Bank’s internal control system. ICCD performs
some of the supervisory and monitorial activities to
Maintaining Net Open Position (NOP) within the ensure that the system of internal control is being
limit set by Bangladesh Bank; implemented in Bank’s day to day operations. The
mission of ICCD is to provide independent and
By setting counterparty limit which includes objective assurance and advice designed to add
forward, placement, SWAP limits for foreign value and improve the Banks' operations. ICCD helps
exchange transactions; the Bank to accomplish its objectives by bringing a
By setting limits for the foreign exchange dealers systematic, disciplined approach to evaluate and
(intraday open position limit, stop loss limit, per improve the effectiveness of risk management,
deal limit, trigger limit); control and transparent governance processes.
By reconciling Nostro accounts periodically as ICCD has 03 units i.e. Audit and Inspection Unit,
per the instruction of Bangladesh Bank. Compliance Unit and Monitoring Unit.
By calculating VaR (Value at Risk) to measure Audit and Inspection Unit

the highest possible loss of holding of foreign
currency; The functions of internal audit/inspection of SEBL
constitute a separate component of Internal
04. Internal Control and Compliance Control undertaken by specially assigned Officials
Risk Management within the bank with the objective of determining
whether other Internal Controls are well designed
A system of effective internal controls is a critical and properly operated. The Head of Audit and
component of Bank management and a foundation Inspection Unit have full and free access to the
for its safe and sound operation. It can help to Audit Committee of the BoD. The members of audit/
ensure that Bank’s goals and objectives will be inspection team also have unrestricted access to
met; Bank’s long-term profitability targets will be all functions, records, property and personnel for
achieved; reliable financial and managerial reporting conducting audit/inspection.
will be maintained; relevant laws, regulations,
policies, plans, internal rules and procedures will be The audit and inspection unit conducts audits/
complied with; and the risk of unexpected losses or inspections using mainly a risk based approach, and
damage to the Bank’s reputation will be decreased. reports its findings along with the recommendations
Southeast Bank Limited has established a robust relating to possible improvements to risk
Internal Control and Compliance Framework to management policies/measurement and control
ensure (i) efficiency and effectiveness of its day tools to the Audit Committee of BoD. The activities
to day operation; (ii) reliability, completeness and of this unit are aimed at both controlling activities
timeliness of financial and management information; (a third level control activity), also by means of
and (iii) compliance with applicable laws, regulations, on-site audits to review trends of operations and
policies, procedures; so that the Bank can stay on risks, and evaluating the completeness, adequacy,
course towards profitability goals, achievement of its functionality and reliability of the organizational
mission and improvement of the performance, and structure and the other components of the overall
to minimize surprises. The Board of Directors (BoD) internal control system. This Unit has three (03)
through its Audit Committee oversees, monitors Cells for performing its tasks smoothly; that is:
and evaluates the system of internal control, the
audit/inspection process, and the process relating Audit Cell-1 conducts regular audit/inspection
to compliance with laws and regulations and the based on the approved annual audit/inspection
code of business practice of Southeast Bank. plan by the Audit committee BoD. Apart from this,
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a bank with vision
Investigations and Inquiries are also conducted implementing various internal control tools, such as
by this unit to uncover the underlying reasons, DCFCL, QOR, LDCL, Self-Assessment of Anti-Fraud
employees responsible and to mitigate losses and Internal Controls Report, Annual Summary Report,
correct errors. Bank’s Health Report, etc. They also collect relevant
data and perform offsite analysis to assess the risk
The prime job of Audit Cell-2 is to review the of individual units. In case they find major deviation,
transactions related to trade finance (e.g. trade, they recommend to the Head of ICCD for sending
treasury, remittance, etc) and the online reporting audit and inspection team for thorough review.
of the regulatory authority. Comprehensive
inspection, according to the approved annual In a year round program of 2018, the comprehensive
inspection plan on each of the Authorized Dealer surprise inspection of 105 (One Hundred Five)
(AD) Branches and related Divisions of Head Office branches and divisions of Head Office were carried
like International Division (ID) and Treasury Division
out by the Internal Auditors. Furthermore, the ICT
are also conducted by this unit.
inspection team conducted inspection on a total of
33 (Thirty Three) branches and 01 (One) division of
Audit Cell-3 is responsible for conducting regular
Head Office. Out of the approved audit/inspection
IT Audit/Inspection according to the approved
plan a number of special inspection/investigation/
inspection plan of the bank as well as in line with the
ICT guidelines issued by Bangladesh Bank. inquiry were also carried out by the inspection
team as per direction of the competent authority
Compliance Unit of the Bank.
This unit performs the necessary monitoring and Findings and observations or the statement of
supervisory activities to ensure that the Bank is facts identified/discovered through the audit/
operated in conformity with the applicable laws, inspection are aggregated in an inspection report.
regulations, policies, international standards, The report is then sent to the respective branch/
guidelines, etc. and responding fully and in a timely division with significant time period for rectification/
manner to supervisory criticism and orders to take regularization of the findings and reply Back to the
corrective action issued by applicable regulatory ICCD. Major observations and summarized reports
authorities or law enforcement bodies. They also are discussed in the meetings of ACB and the ACB
assist for the mitigation of compliance risk, which provides necessary decisions/recommendations for
is the risk of legal or regulatory sanctions, material further action to be taken by the management of
financial loss, or loss to reputation as a result of the Bank. The Bank’s management implements the
failure to comply with applicable rules. This unit decisions of the ACB and takes necessary remedial
takes actions as per advice/instructions laid down measures according to the decisions of Board Audit
in the internal as well as external audit/inspection Committee.
reports or any changes brought in by the regulatory
authority. The work of compliance Unit of the Bank is 05. Anti Money Laundering Risk
virtually divided into two groups; namely (i) Internal
Management
Audit compliance is responsible for monitoring the
compliance activities of the branches, divisions of
Southeast Bank has always given utmost importance
Head Office and subsidiaries based on the findings
to activities relating to Anti Money Laundering &
of internal audit/ inspection reports; and (ii) External
Combating the Financing of Terrorism to mitigate
Audit Compliance is responsible for monitoring the
compliance activities of the branches, Divisions of the reputational, legal and regulatory risk for the
Head Office and Subsidiaries based on the findings of bank. Southeast Bank follows a zero tolerance
external/regulatory and statutory audit/inspections. strategy against AML & CFT issues.
The bank has put the following tasks in place for

Monitoring Unit
mitigating the risk of money laundering, terrorist
financing and proliferation financing at home and
This unit verifies the internal control system and
abroad:
monitors the operational performance/ activities by
215
1. Works to establish an Enterprise wide AML & of all categories of risks to identify and mitigate
CFT policy & culture them in banking operation. Moreover, before
2. Adheres to applicable AML & CFT laws and introducing new banking product or service, proper
regulations as established by BFIU and other risk assessment is to be conducted for securing
regulatory agencies information assets of the Bank from internal and
external threats.
3. Reports all identified suspicious transactions/
activities as and when identified considering Taking into consideration of the technological risks,
related laws and regulations the Bank has been taking substantial initiatives to
4. Monitors AML & CFT activities of the branches, protect its business from ICT related threats and
all other related divisions and off shore banking vulnerabilities. Review of ICT risk management
units to check their compliance against AML & policy, formation of IT security and risk management
CFT related laws and regulations. team, conducting vulnerability assessment and
5. Retains all customer and AML & CFT documents internal and external penetration testing (VA-PT) are
for the period specified by BFIU the noteworthy steps taken by the Bank to mitigate
operational risks related to information technology.
6. Trains all employees on AML & CFT laws & Throughout the year, Information Security and risk
regulations, arranges refresher training for the management audit and inspection were conducted
existing employees & keeps records of training by the internal compliance team, external audit
related information firm and Central Bank. We are also in the process
7. Ensures Enhanced Due Diligence (EDD) for High of implementation of 24/7 Network and Security
Risk accounts Monitoring System within a shortest possible time.
8. Conducts awareness building program on AML The ICT risk management is an ongoing process,
& CFT issues around the year for stakeholders and the Bank is continuously examining risks by
of the bank. analyzing threats and vulnerabilities in its different
banking services under the risk management
06. Information Technology Risk framework and taking gradual steps to mitigate
identified risks.
Management
With the advances in Information and 07. Environmental Risk Management

Communication Technology, the major Banks
Southeast Bank Limited recognizes that balancing
in Bangladesh have introduced online banking
non-financial factors such as environmental and
service through deploying centralized Core
social issues with financial priorities is an essential
Banking Software (CBS). The Banks have gradually
part of good corporate citizenship, in addition
introduced alternative delivery channels, like ATM,
to being fundamental to risk management and
POS terminal, Internet Banking and Mobile Financial
the protection of investors. We have a direct
Service (MFS), other than traditional branch banking
impact on the environment through our daily
system. The customers have been offered with
consumption of energy and paper/Ink resources.
different international branded Credit and Debit
We also potentially have an indirect effect on the
cards which facilitated them to make payment or
environment through the provision of financial
withdraw cash at their convenience without visiting
services to projects in environmentally sensitive
banks’ branches. The opportunity of modern
areas. Protecting the natural systems upon which
information technology is being fully availed by the
all life depends while lifting people out of poverty
financial institutions to expedite financial inclusion
and advancing economic development are among
process for unbanked population. However, due to
the greatest challenges confronting humanity.
dependence on technology for banking operation,
We recognize that the policies and practices we
it is inviting more risks and vulnerabilities especially
adopt today will shape not only our lives but also
fraudulent transactional activities from internal
those of future generations. We therefore have
and external sources. Therefore, the Bank has to
an opportunity to make a positive contribution to
have strong policies and processes for assessment
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a bank with vision
environmental and social concerns by enacting SEBL recognizes that taking ecological and
policies so that our business operations do social aspects into account is part of good
not degrade the environment or cause social business and leads to sustainable development.
harm. Such policies not only indicate positive The Bank believes that this approach enhances
environmental responsibility but also present the client's competitive advantage and that
business opportunities such as innovative
economic growth and a healthy environment go
financial products and investments in sustainable
hand in hand.
forestry and renewable energy. This will help
us better manage our risks, develop expertise, SEBL prioritizes and actively seeks to finance
and provide clients with solutions to evolving projects with direct or indirect environmental
exposures. benefits.
SEBL assesses the environmental aspects of all
To demonstrate our commitment, Southeast
Bank Limited has adopted a comprehensive loan applications.
environmental policy. The policy will be implemented SEBL commits itself to act as a good corporate
with an Environmental Management System citizen and will continually pursue improvements
that includes planning, training, implementation, in its operations and in applying best practices
measurement, reporting and review, and applied
in environmental management in its internal
to new business and existing business that comes
operations.
up for renewal or extension. Specifically, we will
integrate environmental and social awareness SEBL seeks business partners who share
into the credit analysis and financing decision their vision and commitment to sustainable
process, and incorporate it, where appropriate, development and work together with other
as part of our due diligence review. We will train organizations to promote sound, coordinated
relevant employees to take responsibility for and and effective approaches to environmental
implementation of these policies.
issues.
According to the policy:
SEBL defines the term "environment" to include The Bank also formed a new Sustainable Finance
both ecological (such as physical and biological) Unit as per Bangladesh bank guideline. Terms of
aspects and related social aspects (such as
Reference of the Unit includes implementation of
worker protection and community issues).
Environmental and social risk management policy.
217
Disclosure on Risk Based Capital

Adequacy (Basel III)
The promotion of transparency and market discipline through regulatory
disclosure requirements have always been key tenets in the Basel framework.
The disclosures enable stakeholders and market participants to assess the Bank’s
risk appetite and risk exposures, and encourage the banks to move towards
more advanced forms of risk management.
The purpose of this disclosure report is to set out A. SCOPE OF APPLICATION

how Southeast Bank complies with the Pillar 3
requirements under Basel III. The report will enable Qualitative Disclosures
market participants to assess key information relating
to the Bank’s regulatory capital and risk exposures
a) The name of the top corporate entity to which
more effectively in order to instill confidence about
this framework applies: Southeast Bank Limited.
the Bank’s exposure to risk and overall regulatory
capital adequacy. The report provides additional b) The quantitative disclosures are made on
information to allow market participants to have a the basis of consolidated audited financial
full picture of the risk profile of the Bank, to assess statements of the Bank and its Subsidiaries
key information relevant to the capital structure, risk as at and for the year ended December 31,
exposures, risk assessment processes and hence 2018 prepared under relevant International
the capital adequacy of the Bank. Accounting and Financial Reporting Standards
as adopted by the Institute of Chartered
These qualitative and quantitative disclosures of the Accountants of Bangladesh (ICAB) and related
Bank are prepared in accordance with the central circulars/instructions issued by Bangladesh
bank’s Guidelines on Risk Based Capital Adequacy Bank from time to time. In preparing
(Revised Regulatory Capital Framework for Banks consolidated financial statements, the Bank
in line with Basel III). The disclosures meet the and its subsidiaries’ financial statements are
minimum regulatory requirements and provide combined on a line by line basis by adding
disclosure of the risks to which it is exposed, both together like items of assets, liabilities, equity,
on and off-balance sheet. The disclosure framework income and expenses. However, all intra group
has the following components: balances, transactions, profits and losses are
eliminated in full.
A. Scope of Application c) Southeast Bank Limited has four subsidiaries
B. Capital Structure particulars of which are given below:
C. Capital Adequacy
Southeast Bank Capital Services
D. Credit Risk
Limited
E. Equities: disclosures for banking book positions
F. Interest rate risk in the banking book (IRRBB) Date of Incorporation: September 23, 2010
G. Market Risk
Date of Commencement: September 23, 2010
H. Operational Risk
Authorized Capital : BDT 6,000.00 million
I. Liquidity Ratio
J. Leverage Ratio Paid up Capital : BDT 5,500.00 million
K. Remuneration Ownership Interest in Capital : 99.82%
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a bank with vision
Southeast Financial Services (UK) and (II) Tier-2 (Gone-concern Capital). From
Limited regulatory capital perspective, going-concern
capital is the capital which can absorb losses
Date of Incorporation: February 22, 2011 without triggering bankruptcy of the Bank and
Date of Commencement: September 26, 2011 gone-concern capital is the capital which will
Paid up Capital : GBP 300,000.00 absorb losses only in a situation of liquidation
Ownership Interest in Capital : 100% of the Bank. Tier-1 capital is composed of (a)
Common Equity Tier 1 and (b) Additional Tier 1,
Southeast Financial Services (Australia) Whereas, Common Equity Tier 1 (CET1) capital
Pty Limited consists of paid-up capital, statutory reserve,
general reserve, retained earnings, minority
Date of Incorporation: March 18, 2013 interest in subsidiaries etc.
Date of Commencement: March 18, 2013
Paid up Capital : AUD 312,082.90 Tier-2 capital is composed of general provision,
Ownership Interest in Capital : 100% subordinated debt, revaluation reserves etc.
Southeast Exchange Company (South Capital requirement rules

Africa) Pty Limited
The Bank is required to maintain the following ratios
Date of Incorporation: December 15, 2014 on an ongoing basis:
Date of Commencement: December 15, 2014
Paid up Capital : RAND 6,632,179.00
1. Common Equity Tier 1 of at least 4.5% of the
Ownership Interest in Capital : 100%
total RWA.
Quantitative Disclosures 2. Tier-1 capital will be at least 6.0% of the total
RWA.
Southeast Bank Limited has four subsidiaries:
Southeast Bank Capital Services Limited, Southeast 3. Minimum CRAR of 10% of the total RWA.
Financial Services (UK) Limited, Southeast Financial
Services (Australia) Pty Limited and Southeast 4. Additional Tier 1 capital can be admitted
Exchange Company (South Africa) Pty Limited. Assets maximum up to 1.5% of the total RWA or 33.33%
and liabilities of these subsidiaries are consolidated of CET1, whichever is higher.
with the financials of the parent company. There is 5. Tier 2 capital can be admitted maximum up
no capital deficiency in the financial year 2018. to 4.0% of the total RWA or 88.89% of CET1,
whichever is higher.
B. CAPITAL STRUCTURE
6. In addition to minimum CRAR, Capital
Qualitative Disclosures Conservation Buffer (CCB) of 2.5% of the total
RWA is introduced which to be maintained in
a) The regulatory capital under Basel-III is the form of CET1.
composed of (I) Tier-1 (Going-concern Capital)
Following is the phase-in arrangement for the implementation of minimum capital requirements:
Particulars 2015 2016 2017 2018 2019

Minimum Common Equity Tier-1 Capital Ratio 4.50% 4.50% 4.50% 4.50% 4.50%
Capital Conservation Buffer - 0.625% 1.25% 1.875% 2.50%
Minimum CET-1 plus Capital Conservation Buffer 4.50% 5.125% 5.75% 6.375% 7.00%
Minimum T-1 Capital Ratio 5.50% 5.50% 6.00% 6.00% 6.00%
Minimum Total Capital Ratio 10.00%% 10.00% 10.00% 10.00% 10.00%
Minimum Total Capital plus Capital Conservation Buffer 10.00% 10.625% 11.25% 11.875% 12.50%
219
Quantitative Disclosures
BDT in Million
b) Regulatory Capital: Consolidated Solo
Tier-1 capital
1) Common Equity Tier-1 Capital (CET-1)
Fully Paid-up capital 10,544.93 10,544.93
Non- repayable share premium account - -
Statutory reserve 10,094.15 10,094.15

General reserve 247.65 247.65
Retained earnings 2,898.04 2,803.81
Dividend equalization Reserve - -
Minority interest in subsidiaries 10.07 -
2) Additional Tier-1 Capital (AT-1)
3) Total Tier-1 capital (1+2) 23,670.42 23,566.12
Tier-2 capital
General provision (unclassified loans, SMA, off balance sheet) 4,522.60 4,522.60
Subordinated debt 10,200.00 10,200.00
Revaluation Reserves as on December 31, 2014 (50% of Fixed Assets and
2,335.43 2,335.43
Securities & 10% of Equities)
All other preference shares - -
Revaluation Reserves for Fixed Assets, Securities & Equity Securities (Phase
1,868.35 1,868.35
in deductions as per Basel-III Guidelines)
4) Total Tier-2 capital 15,189.69 15,189.69
c) Regulatory Adjustments
Revaluation Reserves for Fixed Assets, Securities & Equity Securities (Phase
1,868.35 1,868.35
in deductions as per Basel-III Guidelines)
d)Total eligible capital (3+4) 38,860.11 38,755.81
C. CAPITAL ADEQUACY
Qualitative Disclosures
a) The Bank is presently following Standardized Approach for assessing and mitigating Credit Risk,
Standardized Rule Based Approach for quantifying Market Risk and Basic Indicator Approach for
Operational Risk to calculate Minimum Capital Requirement (MCR) under pillar-I of Basel-III framework
as per the guidelines of Bangladesh Bank.
BDT in Million
Capital Adequacy Consolidated Solo
b) Capital requirement for Credit Risk 27,572.67 27,888.51
c) Capital requirement for Market Risk 1,577.89 982.56
d) Capital requirement for Operational Risk 2,245.53 2,212.86
Minimum capital requirement(MCR) 31,396.09 31,083.93
Total capital maintained 38,860.11 38,755.80
Capital surplus over MCR 7,464.02 7,671.87
e) Capital to Risk Weighted Assets Ratio(CRAR) 12.38% 12.47%
CET-1 to RWA ratio 7.54% 7.58%
Tier-1 Capital to RWA ratio 7.54% 7.58%
Tier-2 Capital to RWA ratio 4.84% 4.89%
f) Capital Conservation Buffer (Required) 1.875% 1.875%
g) Available Capital under Pillar 2 Requirement 7,464.02 7,671.87
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a bank with vision
D. CREDIT RISK 1.3. Credit Monitoring
Qualitative Disclosures The loan portfolio with classification status is

reviewed periodically and brought to the notice of
a) Credit risk is the potential loss that may arise the Board of Directors of the Bank and the senior
from a borrower’s failure to repay a loan or meet its level management regarding downgradation,
obligation in accordance with agreed term. overdue, Special Mention Account (SMA), classified
and rescheduled portfolio along with early alert list
1.1. Credit Approval for their information and guidance. The Branches
are communicated through letters and circulars for
Bank’s credit risk management guideline has been implementation of efficient credit risk management
prepared in line with Bangladesh Bank guidelines in a proper manner including adherence to the
illustrating the approval process, delegation of Bank’s and Bangladesh Bank’s rules and regulations.
authority and other credit related important issues. They have also been advised to follow the guidelines
The approval process segregates relationship of comprehensive recovery/collection procedures
management/marketing from the approval and systems to keep the wealth of credit portfolio
authority. The approval authorities are delegated of the bank sound.
to different levels of management and Board. The
Board of Directors of the Bank has the highest level 1.4. Credit Assessment and Grading
of authority to approve any credit proposal and
delegate such authority to the competent authority Know Your Customer (KYC) is the first step to
(EC, MD, DMD, and Branch Manager). The Corporate analyze any credit proposal. Banker-Customer
Banking Division receives the proposals from the relationship is established through opening
branches and thereafter scrutinizes, analyzes of CD/SB accounts of the customers. Proper
and processes in conformity with Credit Risk introduction, photographs of the account holders/
Management (CRM) guidelines of Bangladesh Bank signatories, copy of passports etc. and all other
and forward the memorandum embodying their required papers as per Bank’s policy are obtained
recommendations to the CRM division for scrutiny at time of account opening. Physical verification
and to ensure that all regulatory procedures/ of customer address is done prior to credit
rules and regulations etc. are complied with. After appraisal. At least three Cs, i.e., Character, Capital
exercising due diligence by CRM, they convey their
and Capacity of the customers are confirmed.
observations to Corporate Banking/Islamic Banking/
Credit Appraisals include inter alia the details of
SME and Agri Credit Division for submitting the
amount and type of loan(s) proposed, purpose of
proposals to Head Office Credit Review Committee
loan (s), result of financial analysis, Debt Structure
(HOCRC) and finally forward it to the competent
(Tenor, Covenants, Repayment Schedule, Interest),
authority for approval.
security arrangements. The above are minimum
components to appraise a credit and there are
1.2. Credit Administration
other analyses depending on the nature of credit.
The Bank accomplishes documentations and makes
disbursements with utmost care to reduce the The bank follows the CRG manual of Bangladesh
potential credit risk. The disbursement authority Bank, circulated on December 11, 2005 through
is given to the branches within approved limit BRPD circular no. 18. Borrowers are assigned to
after the completion of necessary documentation. different risk grades based on the qualitative and
Furthermore, the bank constantly monitors clients’ quantitative factors of their business. There are 08
repayment behaviors, fulfillment of conditions given grades based on the marks obtained in qualitative
before disbursement and compliance of covenants and quantitative factors. The grades and factors
in post disbursement period. are:
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Grading Short Name Marks Number

100% Cash Covered
Superior SUP Government Guarantee 1
International Bank Guarantee
Good GD 85+ 2
Acceptable ACCPT 75-84 3
Marginal/Watch list MG/WL 65-74 4
Special Mention SM 55-64 5
Substandard SS 45-54 6
Doubtful DF 35-44 7
Bad &Loss BL <35 8
Qualitative and Quantitative factors/principal risk components Weight

Financial Risk 50%
Business/Industry Risk 18%
Management Risk 12%
Security Risk 10%
Relationship Risk 10%
Credit Risk Mitigation
Potential credit risks are mitigated by taking primary and collateral securities. There are other risk mitigates
like netting agreements and other guarantees. The legal certainty and enforceability of the mitigates are
verified by the professionals of the respective fields. Collateral types which are eligible for risk mitigation
include cash, residential, commercial and industrial property, land and machinery; marketable securities
etc. Collaterals are physically verified by the officials of the Branches and Head Office. Side by side, valuation
of the same are also done by the enlisted surveyor of the bank in accordance with the credit policy and
procedures.
Past Due and Impaired Credit
A claim that has not been paid within due date is termed as past due claim. Payment may be for repayment/
renewal/rescheduling or as an installment of a loan. For loan classification and maintenance of specific and
general provision, Bank follows BRPD circular no-14 and 19 of 2012, 05 of 2013 and 16 of 2014 and as
advised by Bangladesh Bank from time to time.
Approaches followed for specific and general allowances:
Short Consumer Financing

Term Other Loans to All other
Particulars SMEF
Agri. than HF LP CC BHs/MBs/SDs Credit
Credit HF, LP, CC
Standard 1.0% 5% 1% 2% 2% 0.25% 2% 1%
SMA - 5% 1% 2% 2% 0.25% 2% 1%
SS 5% 20% 20% 20% 20% 20% 20% 20%
DF 5% 50% 50% 50% 50% 50% 50% 50%
B/L 100% 100% 100% 100% 100% 100% 100% 100%
NB: SMA=Special Mention Account, SS=Substandard, DF=Doubtful, B/L=Bad/Loss, HF=Housing Finance, LP=Loans for
Professionals to setup business, CC=Credit Card, SMEF= Small and Medium Enterprise Financing, BHs/ MBs/SDs= Loans to
Brokerage Houses/Merchant Banks/Stock Dealers.
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a bank with vision
1.7 Base for Provision
For the following types of eligible collaterals, provision is maintained at the stated rates mentioned above on
the base for provision. Base for provision is calculated deducting interest suspense and the value of eligible
collateral from outstanding classified loans. Eligible collaterals are the followings:
Deposit with the same bank kept under lien against the loan
Government bond/savings certificate kept under lien,
Guarantee given by Government or Bangladesh Bank.
For all other eligible collaterals, the provision are maintained by the stated rates mentioned above on the
balance calculated as the greater of the following two amounts:
Outstanding balance of the classified loan less the amount of Interest Suspense and the value of eligible
collateral; and
15% of the outstanding balance of the loan.
1.8 Eligible Collateral
The following collaterals are included as eligible collateral in determining base for provision:
100% of deposit under lien against the loan

100% of the value of government bond/savings certificate under lien
100% of the value of guarantee given by Government or Bangladesh Bank
100% of the market value of gold or gold ornaments pledged with the bank.
50% of the market value of easily marketable commodities kept under control of the bank
Maximum 50% of the market value of land and building mortgaged with the bank
50% of the average market value for last 06 months or 50% of the face value, whichever is less, of the
shares traded in stock exchange.
1.9 Subjective Judgment
Considering the nature and performance of a loan, the bank can also classify a particular loan on the basis
of subjective judgment taking into consideration the factors such as uncertainty or doubt of repayment,
continuous loss of capital, adverse situation, decrease of value of securities, legal suit etc. However, regardless
of all rules and regulations the central bank can classify any loan on the basis of their subjective judgment
and can instruct the bank to make additional provision on non-performing loans.
b) Total gross credit risk exposures broken down by major types of credit exposure:
Total gross credit risk exposures by major types: Bangladesh Bank guidelines on Basel III stipulated to
segregate bank's asset portfolio into different categories and the following table shows our gross exposure
in each asset category.
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BDT in Million
Sl Particulars Consolidated Solo
a Cash 21,515.43 21,515.37
b Claims on Bangladesh Government and Bangladesh Bank 50,963.04 50,963.04
c Claims on Banks & NBFIs 26,945.89 26,769.16
d Claims on Corporate 136,303.74 136,303.74
e Claims on SME 61,422.16 61,422.16
f Claims under Credit Risk Mitigation 16285.14 16,285.14
Claims categorized as retail portfolio (excluding SME, Consumer finance
g 1,125.45 1,125.45
and Staff loan ) up to 1 crore
h Consumer finance 2,264.46 2,264.46
i Claims fully secured by residential property 3,794.95 3,794.95
j Claims fully secured by commercial real estate 4,889.36 4,889.36
1. Past Due Claims that is past due for 60 days or more (Risk weights are
k
to be assigned net of specific provision):
Where specific provisions are less than 20% of the outstanding amount
12,554.82 12,554.82
of the past due claim
Where specific provisions are no less than 20% of the outstanding
2,234.20 2,234.20
amount of the past due claim
Where specific provisions are more than 50% of the outstanding
1,286.44 1,286.44
amount of the past due claim
2. Claims fully secured against residential property that are past due
for more than 60 days and/or impaired specific provision held there- 194.89 194.89
against is less than 20% of outstanding amount
3. Loans and claims fully secured against residential property that are
past due for more than 60 days and/or impaired and specific provision 97.81 97.81
held there-against is no less than 20% of outstanding amount
l Capital Market Exposure 2,467.42 -
Investment in equity and other regulatory capital instruments issued by
other banks and Merchant Banks/Brokerage Houses/Exchange Houses
m 7,027.07 12,582.10
which are not listed in the Stock Exchanges (other than those deducted
from capital) held in banking book
n Investments in premises, plant and equipment and all other fixed assets 9,337.30 8,782.36
o Claims on all fixed assets under operating lease - -
p All other assets
i) Claims on GoB & BB 1,092.61 1,092.61
ii) Staff loan 386.70 386.70
iv) Claims on Offshore Banking Unit - -
v) Others 3,017.63 2,906.78
Total 365,206.51 367,451.55
c) Geographical distribution of exposures
BDT in Million
Regions Exposure % of Total Loan
Dhaka 204,975.12 77.28
Chattogram 46,986.12 17.72
Rajshahi 5,439.23 2.05
Sylhet 4,208.56 1.59
Region Based Khulna 2,152.15 0.81
Rangpur 836.23 0.31
Barisal 220.37 0.08
Mymensingh 386.44 0.16
Total 265,204.21 100.00
Domestic 265,204.21
Country Based
Overseas -
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a bank with vision
b) Major Industry wise distribution of exposures (Industrial Loan)

BDT in Million
Ready Made Garment industries (RMG) 50,850.23 19.77%
Real Estate industries 20,733.83 7.82%
Textile industries 15,234.85 5.74%
Agro-Based Industries 13,015.70 4.91%
Cement & Ceramics industries 6,316.20 2.38%
Ship Breaking & Ship Building industries 4,934.20 1.86%
Pharmaceuticals industries 1,870.50 0.71%
Other Industries 80,189.50 30.24%
Total 193,145.00 72.83%
e) Residual contractual maturity breakdown of the whole portfolio
BDT in Million
On demand 35,920.10 13.54%
Less than three months 42,398.30 15.99%
More than three months but less than one year 93,389.80 35.21%
More than one year but less than five years 55,815.50 21.05%
More than five years 37,680.51 14.21%
Total 265,204.21 100.00%
f) Major Industry type amount of impaired loans

BDT in Million
Agriculture 58.00 0.37%
Industrial (Manufacturing) 6,636.25 42.65%
Industrial (Services) 3,375.07 21.69%
Consumer Credit 132.11 0.85%
Trade & Commerce (Commercial Loans) 4,795.73 30.82%
Credit to NBFI - -
Loans to Capital Market - -
Other Loans 561.69 3.62%
Total 15,558.85 100.00%
g) Gross Non-Performing Assets (NPAs)

BDT in Million
Gross Non-Performing Assets (NPAs) 15,558.85
Non-performing assets to outstanding loans and advances 5.87%
Movement of Non-Performing Assets (NPAs):
Opening balance 13,878.50
Additions 11,233.90
Reductions 10,549.70
Closing balance 15,558.85
Movement of specific provisions for NPAs:
Opening balance 6,628.70
Provision made during the period 1,287.30
Write off 2,045.90
Write back of excess provisions
Closing balance 9,961.90
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E) EQUITIES: DISCLOSURES FOR BANKING BOOK POSITIONS
a) Banking book positions consist of those assets which are bought for holding until they mature. The bank
treats unquoted equities as banking book assets. Unquoted equities are not traded in the bourses or in the
secondary market. They are shown in the balance sheet at cost price and no revaluation reserve is created
against these equities.
b) Values of investments as disclosed in the Balance Sheet:

BDT in Million
Consolidated Solo

Cost Price Market Price Cost Price Market Price
Unquoted Share 77.07 77.07 77.07 77.07

Quoted Share 7,443.07 7,058.20 4,893.64 4,081.60
c) For Banking Book Equity

BDT in Million
Consolidated Solo
The cumulative realized gains/losses arising from sales and
liquidations in the reporting period - -
d) For Banking Book Equity

BDT in Million
Consolidated Solo
Total unrealized gains/losses - -
Total latest revaluation gains/losses - -
Any amounts of the above included in Tier 2 capital - -
e)
BDT in Million
Capital Requirement
Particulars
Consolidated Solo
Unquoted Share 9.63 9.63
Quoted Share 1,411.64 816.32
As equities do not have any maturity, we have calculated risk weighted assets for unquoted equities on the
basis of fixed risk weight which is 125% of investment value. And for quoted share capital charge is 10% for
both specific and market risks
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a bank with vision
F. INTEREST RATE RISK IN THE BANKING BOOK (IRRBB)
a) Interest rate risk affects the bank’s financial condition due to adverse movements in interest rates of
interest sensitive assets and interest sensitive liabilities. Changes in interest rates have two types of impact:
Earnings perspective: It affects a bank’s earnings by changing its net interest income and the level of other
interest sensitive income and operating expenses.
i) Economic value perspective: The economic value of future cash flows changes when interest rate
changes.
ii) At present SEBL is following the Bangladesh Bank prescribed format for assessing the economic value
due to interest rate shock.
b) Earnings perspective:
Here, we have used maturity gap method to measure changes in earnings due to changes in interest rates:
BDT in Million
Up to 12 Month Percentage changes in Net interest income and
(Cumulative Gap) interest rate re-pricing impact
1% increase in interest rate +335.00
1% decrease in interest rate -335.00
2% increase in interest rate +670.01
33,500.60
2% decrease in interest rate -670.01
3% increase in interest rate +1,005.02
3% decrease in interest rate -1,005.02
G. MARKET RISK
a) View of the Board of Directors on trading/investment activities
Market risk arises due to changes in the market variables such as interest rates, foreign currency exchange
rates, equity prices and commodity prices. The financial instruments held with trading intent or to hedge
against various risks, which are purchased to make profit from spreads between the bid-price and ask price
are subject to market risk. SEBL is exposed to market risk mostly stemming from Government Treasury Bills
and Bonds, Shares of listed Public Limited Companies, foreign currency etc.
Methods used to measure Market Risk
There are several methods used to measure market risk and the bank uses those methods which are
deemed fit for a particular scenario. For measuring interest risk from earnings perspective, the bank uses
Maturity Gap analysis, Duration Gap analysis, Sensitivity Analysis and Mark to Market (MTM) method. For
measuring foreign exchange risk, the bank uses VaR analysis.
We use standardized (Rule Based) method for calculating capital charge against market risks for minimum
capital requirement of the Bank under Basel-III.
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Market Risk Management System
The Bank has its own Market Risk Management System which includes Asset Liability Risk Management
(ALM) and Foreign Exchange Risk Management under the core risk management guidelines.
Asset Liability Management (ALM): The ALM policy specifically deals with liquidity risk management and
interest rate risk management framework.
Foreign Exchange Risk Management: Foreign exchange risk arises when the bank is involved in foreign
currency transactions. These include foreign currency exchange, placement, investments, loans, borrowings
and different contractual agreements. We use different hedging techniques to mitigate foreign exchange
risks.
Policies and processes for mitigating market risk are mentioned below:
Risk Management and reporting is based on parameters such as Maturity Gap Analysis, Duration Gap
Analysis, VaR etc, in line with the global best practices
Risk Profiles are analyzed and mitigating strategies/ processes are suggested by the Asset Liability
Committee (ALCO)
Foreign Exchange Net Open Position (NOP) limit, deal-wise trigger limits, Stop-loss limit, Profit / Loss in
respect of cross currency trading are properly monitored and exception reporting is regularly carried out
Holding of equities is monitored regularly so that investment remains within the limit as set by Bangladesh
Bank
Asset Liability Management Committee (ALCO) analyzes market and determines strategies to attain
business goals
Reconciliation of foreign currency transactions
b) The capital requirements for:

BDT in Million
Particulars Consolidated Solo
Interest rate risk 141.34 141.34
Equity position risk 1,411.64 816.32
Foreign exchange risk 24.90 24.90
Commodity risk - -
Total 1,577.88 982.56
H. OPERATIONAL RISK
a) Views of the Board of Directors on system to reduce Operational Risk
Operational risk is the risk which may arise directly or indirectly due to failure or breakdown of system, people
and process. This definition includes legal risk, but excludes strategic and reputation risk. The bank manages
these risks through a control based environment in which processes are documented, authorization is
kept independent and transactions are reconciled and monitored. This is supported by a periodic process
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conducted by ICCD and monitoring external operational risk events, which ensure that the bank stays in line
with the international best practices.
Performance Gap of Executives and Staffs
The bank believes that training and knowledge sharing is the best way to reduce knowledge gap. Therefore, it
arranges trainings on a regular basis for its employees to develop their expertise. The bank offers competitive
pay package to its employees based on performance and merit. It always tries to develop a culture where all
employees can apply his/her talent and knowledge to work for the organization with high ethical standards
in order to add more value to the company and for the economy.
Policies and processes for mitigating operational risk
The Bank has adopted policies which deal with managing different Operational Risks. Bank strongly follows
KYC norms for its customer dealings and other banking operations. The Internal Control and Compliance
Division of the Bank, the inspection teams of Bangladesh Bank and External Auditors conduct inspection on
different branches and divisions at Head Office and submit reports presenting the findings of the inspections.
Necessary control measures and corrective actions have been taken on the suggestions or observations
made in these reports.
Approach for calculating capital charge for operational risk
The Bank has adopted Basic Indicator Approach (BIA) to compute capital charge against operational risk
under Basel-III as per Bangladesh Bank Guidelines.
b)
BDT in Million
The capital requirements for operational risk 2,245.53 2,212.86
Calculation of Capital Charge for Operational Risk (Consolidated)
Basic Indicator Approach

BDT in Million
Year Gross Income (GI) Average GI 15% of Average GI
December, 2016 13,569.32
December, 2017 14,786.25
14,970.23 2,245.53
December, 2018 16,555.11
Total GI 44,910.69
I. LIQUIDITY RATIO
a) Views of the Board of Directors on system to reduce Liquidity Risk
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Southeast Bank Limited has proficient Board of Directors that has always been giving utmost importance to
minimizing the liquidity risk of the Bank. In order to reduce liquidity risk, strict maintenance of Cash Reserve
Ratio (CRR) and Statutory Liquidity Reserve (SLR) is also being emphasized on a regular basis. Apart from
these, as part of Basel-III requirement Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) are
also maintained under the guidance of the Board of Directors.
Methods used to measure Liquidity Risk
In order to measure liquidity risk various methods are being used which are as follows:
GAP analysis is being done regularly that deals with the mismatch of assets and liabilities in different
time buckets like 0-30 days, 31-90 days, 91-180 days, 181-270 days, 271-365 days and beyond 1 year.
In our monthly ALCO paper, we show this GAP analysis based on which different strategic decisions are
taken in order to reduce liquidity risk that may arise due to the mismatch between assets and liabilities
Cash flow forecasting is another technique to measure liquidity risk that may arise due to future cash
flow mismatch. In our monthly ALCO paper we show this cash flow forecasting
Liquidity Risk Management system
As part of liquidity risk management system, we have Board approved liquidity contingency plan. In this
liquidity contingency plan, we have incorporated all the strategic decisions to tackle any sort of liquidity
crisis. As per Bangladesh Bank ALM guideline, this liquidity contingency plan is reviewed annually which is
approved by the Board of Directors.
Policies and processes for mitigating Liquidity risk
We strictly follow the Bangladesh Bank instructions and policy guideline to prepare the structural liquidity
profile and submit it to Bangladesh Bank every month. We also place liquidity related information to the
meeting of the Board of Directors each month so that Board can give necessary directives to adjust/prevent
us from the branch of the limits set by the Board and the Bangladesh Bank.
b)
BDT in Million
Liquidity Coverage Ratio (LCR) 123.37%
Net Stable Funding Ratio (NSFR) 115.18%
Stock of High quality liquid assets 73,760.92
Total net cash outflows over the next 30 calendar days 59,788.88
Available amount of stable funding 307,660.82
Required amount of stable funding 267,113.87
J. LEVERAGE RATIO
a) Views of the Board of Directors on system to reduce excessive leverage
Leverage is an inherent and essential part of modern banking business. In other words, banks are highly
leveraged organizations which facilitate leverage for others. Leverage, in simple terms, is the extent to which
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a bank with vision
a bank funds its assets with borrowings rather than capital. More debt relative to capital means a higher
level of leverage.
Banks have a range of financial incentives to operate with high leverage. But it creates risk when it crosses
a certain point. Therefore, the Board views that sound prudential controls are needed to ensure that the
organization maintains a balance between its debt and equity. The Board also believes that the bank should
maintain its leverage ratio on and above the regulatory requirements which will eventually increase the
public confidence in the organization.
Policies and processes for managing excessive on and off-balance sheet leverage:
The leverage ratio is a non risk based approach to the measurement of leverage. The ratio acts as a ‘backstop’
against the risk-based capital requirements and is also designed to constrain excess leverage. There are
three types of leverage: balance sheet, economic and embedded. Under Basel III, the Bank has to maintain
a leverage ratio in excess of 3% of its exposures. The leverage ratio is intended to achieve the following
objectives:
a) Constrain the build-up of leverage in the bank
b) Reinforce the risk based requirements with an easy to understand and a non-risk based measure.
To manage excessive leverage, the Bank follows all regulatory requirements for capital, liquidity, commitment,
Advance Deposit Ratio (ADR), Maximum Cumulative Outflow (MCO), large exposures, as well as risk
management which are eventually reinforcing standards set by Bangladesh Bank. The aim is to ensure that
the high leverage that is inherent in banking business models is carefully and prudently managed.
Approach for calculating exposure
Leverage ratio reflects the Bank’s Tier-1 capital (the numerator) over total exposure (the denominator), which
includes its balance sheet exposures and certain off-balance sheet exposures.
The capital measure for the leverage ratio is based on the Tier-1 capital. The exposure measure for the
leverage ratio follows the accounting measure of exposure. In order to measure the exposure consistently
with financial accounts, the followings are applied by the bank:
1. On balance sheet, non-derivative exposures will be net off specific provisions and valuation adjustments
2. Physical or financial collateral, guarantee, or credit risk mitigation purchased is not considered to reduce
on-balance sheet exposure.
3. Netting of loans and deposits is not considered.
Off-Balance Sheet (OBS) items are calculated by applying a uniform 100% credit conversion factor (CCF). For
any commitments that are unconditionally cancellable at any time by the bank without prior notice, a CCF of
10% is applied.
b)
BDT in Million
Leverage Ratio 5.16% 5.15%
On balance sheet exposure 372,823.17 372,342.42
Off balance sheet exposure 85,766.14 85,766.14
Total exposure 458,464.91 457,984.15
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K. REMUNERATION
Qualitative Disclosure
a) Information relating to the bodies that oversee remuneration
The Human Resources Division of the Bank oversees the remuneration in line with its HR policy under
direct guidance of the Board of Directors of the Bank. A committee comprising some members of senior
Management (Additional Managing Directors) led by the Managing Director is responsible for formulating
remuneration policy. The Head of Human Resources Division acts as the Member Secretary of the committee.
The remuneration committee is the main body for overseeing the Bank’s remuneration. The committee
reviews the position of remuneration and recommend to the Board of Directors for approval taking into
consideration present cost of living index, rate of inflation and the existing remuneration of peer banks.
The Bank does not have any external consultant in preparing and implementing the remuneration policy.
The Bank follows a non-discriminatory policy in respect of remuneration and benefits for Head quarter and
regions. However, a foreign posting allowance in remuneration is in practice for employees who are posted
outside Bangladesh.
b) Information relating to the design and structure of remuneration processes
The motto of the remuneration policy is to attract and retain productive employees who can contribute
substantially to the overall growth of the Bank. The remuneration policy is carefully designed and regularly
updated to provide adequate incentives so that the employees are fully committed to do their best to achieve
the operational goals of the Bank.
The committee reviewed the salary structure of few grades in the year 2018 and the authority concerned
approved upward revision of the pay packages of the employees of those grades as an incentive for posting
better result.
The risk and compliance related employees are carrying out the activities independently in line with delegation
of powers and job descriptions approved by appropriate authorities.
c) Description of the ways in which current and future risks are taken into account in the
remuneration processes
When implementing remuneration measures, the Bank considers business risk, financial and liquidity risk,
compliance and reputational risk for each official.
Various types of measures are taken into account in determining these risks. The measures focus on the
organizational goals set for operational areas. Asset quality (NPL ratio), cost-income ratio, net profit growth
etc. are used for measuring the risks.
The performance of each employee is evaluated for a particular period especially annually against
performance indicators set and agreed with the officials at the beginning of the year. Performance differs
from employee to employee and this affects the remuneration package.
In the year 2018, there has been no material change that could create impact on the remuneration.
d) Description of the ways in which the bank seeks to link performance during a performance
measurement period with levels of remuneration
The Bank has one set of Performance Appraisal Form (PAF) to evaluate the performance of all categories of
officials of the bank. The PAF has 3 (Three) parts i.e. (i) Key Performance Indicators, (ii) Personal Attributes
and (iii) Job Related Skills and Competencies. Key Performance Indicators (KPIs) are deposit, investment and
profit target oriented.
Decisions about promotion, granting of annual increment and incentive bonus are linked to the performance
of the employees against the set Key Performance Indicators.
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a bank with vision
e) Description of the ways in which the bank seeks to adjust remuneration to take account of
longer-term performance
The Bank does not seek to adjust remuneration to take account of longer-term performance.
f) Description of the different forms of variable remuneration that the bank utilizes and the
rationale for using these different forms
The Bank pays variable remuneration such as, Technical Allowance for the officials of Information Technology
Division, Alternative Delivery Channel (ADC) Unit, Branches & General Banking Division, Legal Affairs Division,
Surveillance Allowance for the Head/Supervisor, In-charges & Operators of Central Monitoring System (CMS)
of Head Office and Charge Allowance for Heads of Branches. Those allowances are paid taking into account
the special and technical nature of the job they perform.
Quantitative Disclosure:
g) Number of meetings held by the main body 03 meetings of remuneration committee were
overseeing remuneration during the financial year and held and no remuneration was paid to the
remuneration paid to its matter members
h)
Number of employees having received a variable 232 employees received a variable remuneration
remuneration award during the financial year in the year 2018
Number and total amount of guaranteed bonuses
02 guaranteed bonuses were awarded and the
awarded during the financial year
total amount of bonus was BDT 154.58 million
Number and total amount of sign on awards made No amount was paid as sign-on awards
during the financial year
Number and total amount of severance payments No payment was paid as severance
made during financial year
i) Total amount of outstanding deferred remuneration,
split into cash, shares and share-linked instruments and
Not Applicable
other forms. Total amount of deferred remuneration
paid out in the financial year
Amount (BDT in
j) Breakdown of amount of remuneration awards for Particulars
Million)
the financial year to show:
Fixed 154.58
Fixed and variable. 174.62
Variable 20.04
Deferred and non-deferred. Deferred -
Different forms used (cash, shares and share linked Non-deferred 174.62
instruments, other forms) Form used (cash) 174.62
k)
Quantitative information about employee’s
exposure to implicit (e.g. fluctuation in the value
of shares or performance units) and explicit
adjustments (e.g. clawbacks or similar reversals
or downward revaluation of awards) of deferred
remuneration and retained remuneration:
Not Applicable
Total amount of outstanding deferred remuneration
and retained remuneration exposed to ex post
explicit and/or implicit adjustments
Total amount of reductions during the financial year
due to ex post explicit adjustments
Total amount of reductions during the financial year
due to ex post implicit adjustments
233
234
Sustainability Appraisal and
Integrated Reporting
Sustainability Report - At A Glimpse 236-237
Report on Corporate Social Responsibility 238-239
Southeast Bank Foundation 240-241
Southeast Bank – The Financial Express – Policy Research Institute Green Award Trust 242
Environment Related Initiatives 243-244
Green Banking Initiatives- Environmental and Social Obligation 245
Report on Human Capital and HR Accounting 246-248
Policy to encourage employees to participate in Management 249
Whistle Blower Policy 249
Contribution to National Economy 250
Value Added Statement 251
Economic Value Added Statement 252
Market Value Added Statement 253
Sustainability Report
At A Glimpse
Southeast Bank has been actively pursuing its sustainability journey towards
meeting its stakeholders’ needs and expectations. Our efforts continue to
focus on contributing to the development of our local community, investing
in our people, conserving environmental resources, enhancing internal
operations and adopting local and global policies and best practices.
Southeast Bank recognizes the opportunity Customers' Interest

to identify broader business drivers through a
sustainable lens that considers the integration of Customer-centric banking services are imperative
social and environmental aspects in addition to to long term value creation. One of SEBL’s strategic
the economic and ethical perspectives within its targets is to increase customer loyalty. The Bank
business strategy and daily operations. develops simple and personalized solutions for
its customers, increasing their loyalty to the Bank
We have translated our sustainable goals into and boosting their trust by providing excellent
concrete objectives and efforts, focusing on four service through its network of over 135 branches.
priorities relevant to our business objectives which We do our best to offer simple, transparent
are as follows: and cost effective products and services which
safeguard our customers against risky decisions.
Customers' Interest Besides conventional banking services, we provide
alternative delivery channels like ATM service,
Community Involvement
internet banking service, online banking, locker
Good Employment Practices service etc. Resolving customer complaints quickly
Environment and effectively is fundamental to good customer
service and an opportunity to show our customers
how much we value their business. We encourage
all officials to welcome a complaint, take ownership
and resolve it then and there if possible. We actively
encourage feedback from our customers and regard
complaints as constructive comments that enable
Good
Employment us to build customer relationships and improve our
Practice
business. We believe our customer centric approach
promotes and strengthens the bank’s reputation.
Community Involvement
Community Southeast Bank is firmly rooted in the society where it

Environment Sustainability Involvement does its business operations. We believe that a stable
environment and a strong economy are correlated
and precondition for progress of the country. We
acknowledge our social responsibility well and
align our business strategies with our culture. We
participate in society through community activities
Customers’ using our financial skills and expertise. Every year
Interest the Bank keeps aside a substantial amount of
money from its profit for the development of the
society as Corporate Social Responsibility (CSR). As
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a bank with vision
part of its commercial activity, SEBL offers a wide development of products and services. Southeast
range of products and services with social and/or Bank’s commitment towards environment is
environmental added value. These products provide evident from its positive environmental impact and
access to financial services for low income groups, measurement of its internal environmental footprint.
socially responsible investment and financing in The Bank strives to ensure that its operations are
renewable energies and environment-friendly environment friendly. We believe that every small
products. By engaging with the communities we ‘GREEN’ step taken today would go a long way in
not only contribute to a sustainable society but also building a greener future and that each one of us
help the long term sustainability of our business. can work towards a better global environment.
Good Employment Practices To promote green banking, the bank has a policy
which serves the following objectives:
The Bank considers its human resources as its assets.
Therefore it is committed to offering competitive Reducing paperwork, utilizing email to
compensation, benefits, training and development, disseminate information, saving important
congenial working environment to bring dynamism information electronically instead of using
and growth in business. The Bank has a safety policy paper, encouraging double-sided printing etc.
to ensure sound health of the staff. This ties in nicely Reducing electricity consumption, using energy
with our HR policy and our ambition to be the best efficient electronic equipments, replacing
place to work. To this end, we offer our employees normal bulbs with energy saving bulbs and
a range of facilities to support their physical, turning off computers, lights, fans, air coolers
mental, emotional and spiritual well-being. The during unoccupied times
Bank’s healthy, safe and good working conditions
enhance job enjoyment and reduce the chance of Ensuring usage of more day light instead of
illness, accidents, injuries and damage. Our Human Electric light and proper ventilation instead of
Resource Strategy is designed to attract, retain and using air-conditioning
motivate the best people in many ways:
Introducing online banking that allows the
Providing a Positive Working Environment customers to transfer funds and pay bills
through the Internet
Recognizing, Rewarding and Reinforcing the Abstaining from giving loans to environmentally
Right Behavior harmful projects
Creating a Culture of Excellence in which Creating awareness amongst the stakeholders

employees are encouraged and enabled to about environmental and socially responsible
grow their expertise and sharpen their skills. business practices
In addition to an ever evolving training course
Financing installation of Effluent Treatment
offering for staff, we have an extensive leadership
Plant (ETP) in the industrial units and to finance
development program which grooms managers
in Solar Energy, Bio-gas and Hybrid Hoffman
to become inspiring leaders.
Kiln (HHK) in brick field.
We believe this approach attracts new talent,
Moreover, Southeast Bank has introduced ‘GREEN
retains valuable employees and underlines the
AWARD’ for community leaders and entrepreneurs.
reputation of the bank as a good employer and a
The award aims to recognize and honor individuals,
desired destination for work. As a consequence the organizations and companies for significant
bank has emerged as a strong brand in the financial contributions towards achieving environmental
sector and sought after work place for many. sustainability through green business and
operations, knowledge management and
Environment community engagement. The award also aims to
boost synergies between the bank and the climate
Southeast Bank is firmly committed to the warriors for conserving environmental resources.
environment and combating climate change. This The bank has also adopted the Environmental Risk
commitment is reflected in the Bank’s corporate Management guidelines in its operation.
governance, in the Bank’s lines of action &
237
Report on Corporate
Social Responsibility
CSR Policy of Bank vi) Creating a lasting relation with suppliers and
business associates for mutual benefit;
Our Corporate Social Responsibility (CSR) activities
follow transparent business practices that are vii) Supporting charitable ventures, relief operations
based on ethical values, compliance with legal and environment protection;
and regulatory requirement and respect for
people, communities and the environment. We are viii) Coming to the aid of the poor and the needy
responsible for the totality of our impact on people people of the society;
and the planet, beyond making profit. Our corporate
social responsibility is about addressing the needs ix) Maintaining high compliance standard in
of all the stakeholders in a way that advances our regard to all relevant laws and regulations of all
business and makes a positive and meaningful regulatory bodies;
contribution to the society.
x) Supporting art, education, sports, culture,
Southeast Bank pursues a strong policy based on healthcare etc;
its belief in Corporate Social Responsibility (CSR), a
policy by which we contribute our support to the xi) Promoting good community relation to foster
society in which we live and operate. By this policy, a relationship of understanding, trust and
we contribute our small bit of backing in sustaining credibility;
the society that gives us the business sustenance.
Our Corporate Social Responsibility encompasses xii) Observing environment related laws
our customers, employees, shareholders, suppliers, and regulations and working for healthy
business associates and the society as a whole. development of the society;
We endeavor to achieve our objectives in the area
of corporate social responsibility in the following xiii) Supporting development of the women
manner: community;
i) Stressing upon extension of credit and xiv) Carrying on energy and resource-saving
participation in projects for economic activities within the Bank;
development of the country;
xv) Winning the reputation that the citizens
ii) Following fair and ethical banking practices and acknowledge the significance of Southeast
maintaining sound management; Bank’s existence;
iii) Developing and prospering with customers Southeast Bank Foundation (SEBF)
by offering top-quality and high-value- added
products and services; With a view to discharging Corporate Social
Responsibilities in a most organized and
iv) Offering competitive pay package and career coordinated way, Southeast Bank Foundation was
path to the employees and creating a congenial set up by Southeast Bank Limited in 2002. Because
workplace; of having effective and organized frameworks, it
has succeeded in undertaking a number of CSR
v) Enhancing shareholder value by optimizing programs.
financial performance at a competitive cost;
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a bank with vision
Donation to the Prime Minister’s Relief Support for Educational Institutions

and Welfare Funds
Education is the backbone of a nation. To create good
Southeast Bank never lacks in extending its material citizens for the nation, we supported educational
and financial support to national causes and natural institutions in improving their educational
calamity victims on humanitarian ground. At the call environment. In 2018, we spent BDT 33.35 million
of necessity, Southeast Bank donated BDT 57.19 for the purpose.
million to the Prime Minister’s Relief and Welfare
Fund in 2018. Financial Support to poor people for
medical treatment of their serious
Educational Scholarship diseases
Southeast Bank Foundation started Scholarship We get our business sustenance from the society
Program back in 2009. It aims at helping the promising in which we operate. We stand by the poor people
and brilliant learners coming from poor families in distressed by serious illness and provide them
the pursuit of their education at different levels. The financial assistance for medical treatment of their
process of selection of students for scholarship is serious diseases. In the year 2018, an amount of BDT
done most neutrally. In 2018, we spent total BDT 29.55 million was spent for this humanitarian cause.
13.62 million for Scholarship to students at different
levels selected from educational institutions across Support for promotion of law and order in the
the country. In 2018, scholarship was given to 692 country
students at different levels.
Crime-free society is the key to economic
development. We assisted different bodies in their
Southeast Bank Green School
longing for maintenance of law and order in the
country. In 2018, we spent BDT 5.63 million for the
Considering the predominating demand for
purpose.
quality education at the grooming stage of life,
Southeast Bank Green School was set up in 2013
Donation to different bodies/
for the children of families with moderate income
Institutions
at Mohammadpur, Dhaka. It is housed in 2 (two)
adjacent buildings located in the midst of a number
In 2018, we extended financial support to different
of housing societies. The school follows edexcel bodies and institutions to pursue charitable
British Curriculum. It is equipped with all modern ventures, environment protection, women
amenities and facilities. Currently, 31 teachers are emancipation etc. In the year 2018, a total amount
putting their relentless efforts to impart quality of BDT 32.87 million was spent for the purpose.
education to the students. In 2018, a total amount
of BDT 19.59 million was spent for the school. Total CSR expenditure
Our CSR-efforts go beyond charity. We support
Green Award institutions to protect wildlife habitat, curb effect of
climate change and improve conditions of families
Corporate citizenship to us means thinking long term and communities. We promote green living and
and working to integrate social and environmental green banking. We are not interested in financing
considerations into how we run our business. We projects which are not environment friendly or
want to inspire the individuals and organizations which may cause damage to it.
who are actively working to preserve environment.
With that end in view, the Board of Directors of the In 2018, Southeast Bank spent total BDT 208.53
Bank in its 395th meeting held on March 14, 2012 million for education, sports, art, culture, promotion
decided to give Green Awards to institutions and of national heritage, improvement of the condition
Women Entrepreneurs for really making significant of autistic children, women emancipation, health-
contribution to the preservation of environment. care, financial assistance to disadvantaged people,
The award was named, ‘Southeast Bank - The donation for national disaster-victims, help for poor
Financial Express – Policy Research Institute Green peoples’ medical treatment of serious diseases,
Award’. A separate report on Green Award Trust is community development, relief operation, winter-
included elsewhere in this Annual Report. clothes for the cold-hit poor people, etc.
239
Southeast Bank
Foundation
With a view to discharging Corporate Social Responsibilities in a most
organized way, Southeast Bank Foundation was founded by Southeast
Bank Limited. Because of having effective and organized frameworks, it has
succeeded in undertaking a number of CSR programs, such as, Scholarship
for the meritorious students living in the midst of poverty; running English
medium school for the children belonging to the middle class family.
The Southeast Bank Foundation has been The scholarship program of SEBF began its march in
continuing its operation with extended acclamation the year 2009. It is aimed at helping the promising
because of having a powerful and foresighted Board and brilliant learners coming from poor families.
of Directors which is comprised of the following The scholarship program started its journey with
members: two dimensions: one for school level and the other
for HSC level students. The program was further
1 Mr. Alamgir Kabir, FCA Chairman strengthened by covering scholarship at graduation
2 Mr. M. A. Kashem Director level in 2011.
3 Mr. Azim Uddin Ahmed Director
At the school level, the Foundation implements
4 Mr. Yussuf Abdullah Harun Director
its project with the sincere co-operation of SEBL
5 Mrs. Duluma Ahmed Director branches.
6 Dr. Zaidi Sattar Director
7 Mr. Zakir Ahmed Khan Director In the year 2010, the foundation provided
8 Mr. M. Kamal Hossain Director scholarship to 245 students. In the year 2011, the
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a bank with vision
number raised up to 337. In the following year, 243 2018-19 the Foundation received around 2,230
students were awarded. In 2013, the foundation applications for scholarship and they accorded the
took care of 209 students’ educational expenses. initial cheque through an auspicious ceremony.
In next year, 173 were selected for the scholarship.
Later in 2015, 2016 and 2017, the numbers of The announcement of scholarship for the students
recipients were 110, 52 and 20 respectively. of the Graduation level is also first published in
the daily newspapers. It is also made available in
For the students of the higher secondary level, the Bank’s website. In the academic session 2011-
the news of scholarship initially comes into light 2012, scholarships were awarded to 75 applicants.
through the advertisement in the widely read daily In the academic session 2012-2013, as many as 75
newspapers. In addition, it is also made available in students were nominated for scholarship. In the
the Bank’s website. In the successive years in 2009; next session 2013-2014, total 60 students were
2010; 2011; 2012; 2013; 2014; 2015; 2016 and selected for the purpose. Again for the session 2014-
2017 the foundation quite professionally handled 15, the Foundation managed to select yet another
the scholarship procedure with the number of 60 candidates. Thus the number of recipients of
students of 230; 281; 278; 282; 245; 206; 200; 200; scholarship at the graduation level in the reporting
200 and 200 respectively. In the session 2018-19, year stands at 270 who are being supported by
the Foundation received around 2,316 applications the scholarship and steadily progressing in their
for scholarship. After scrutiny and conducting viva respective academic fields with the dream of being
voce, the Foundation eventually finalized a list of a powerful, effective and dynamic resource of the
200 candidates for the scholarship. In the session country.
241
Southeast Bank – The Financial Express

– Policy Research Institute Green
Award Trust
Southeast Bank-Financial Express-Policy Research including SMEs as well as large enterprises working
Institute Green Award Trust was established in for sustainable development and operation
June 30, 2013. The Bank created the Trust to of Green Business and Poverty Reduction at
recognize the individuals or organizations who community level. The awards are given to the eligible
are contributing to foster green conservation, candidates under three categories :( 1) Leadership
eco-friendly business and operation, community in Sustainable Green Business Operation (2)
development and poverty reduction in the country.
Leadership in Sustainable Community Development
The Green Award Trustee Board consists of
and Poverty Reduction and (3) Leadership in
distinguished personalities of the country headed
Environmental Management and Sustainable
by Dr. Mohammed Farashuddin, Former Governor,
Development. Applications and nominations are
Bangladesh Bank. The Chief Executive Officer of
Southeast Bank, the Editor of the Financial Express invited through mail and internet. Thereafter, the
and the Chairman of Policy Research Institute are nominations applications are scrutinized by the
the ex-officio members of the Board of Trustees. Board of Trustees for final selection. The Board of
The Board of Trustees is composed of the following Trustees is the highest authority to decide on the
distinguished personalities: final selection of candidates.
1. Dr. Mohammed Farashuddin Chairman The Trust hereunder the following eight companies
2. Mr. Yussuf Abdullah Harun, FCA Member / NGOs with the Green Award in 2017:
3. Dr. Zaidi Sattar Member

i. Yunusco (BD) Ltd.
4. Dr. Saadat Husain Member
ii. AKH Eco Apparels Limited
5. Mr. Zakir Ahmed Khan Member
iii. SQ BIRICHINA LTD
6. Mr. M. Kamal Hossain Member
iv. Snowtex Outerwear Limited;
7. Dr. Ainun Nishat Member
v. Shaymol Bangla Krishe Khamar
8. Dr. Shahnaz Huq Hussain Member vi. Nature Conservation Management (NACOM)
9. Dr. Quazi Mesbahuddin Ahmed Member vii. Wave Foundation
Member
10. Mr. KM Mozammel Hoq viii. SKS Foundation
Secretary
The Awardees were honored with certificates

The Trust created a fund for the purpose of
and prize money for their contribution towards
introducing an award to encourage and recognize
sustainable development, business community
the achievement of individuals or organizations
development and poverty reduction.
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a bank with vision
Environment
Related Initiatives
Southeast Bank aims at facilitating to build a sustainable business that brings
benefit to our stakeholders, society, environment and economy as a whole.
Our existing Environmental Policy provides a framework for managing our
environmental impacts, including climate change by establishing a set of
commitments to deliver.
Highlights of 'Sustainable Finance Activities' of the knowledge management.

Bank Enhancing online coverage for clients; for
example: ATM, SMS Banking, Internet Banking,
In 2016 Bangladesh Bank instructed to form a mobile Banking etc.
"Sustainable Finance Unit" by abolishing existing The Bank has adopted and implemented a green
Green Banking Unit. The new Unit consists of six office guide named 'southeast Shobuj Jibon' for
(06) members under the supervision of Head of the Bank. Salient features of this Green Office
Credit Risk Management (CRM) Division. Guide are as follows:
As per the directives of Bangladesh Bank,
Southeast Bank adopted a policy namely 'Southeast Shobuj Jibon' is an initiative that moves
"Guidelines on Environmental and Social Risk beyond our processes and our customers to efficient
Management". automated channels for building awareness and
consciousness for environmental issues. The Bank
A separate policy guidelines for 'Green Banking'
will introduce a monthly news letter to distribute
was adopted in 2011
among the employees of the Bank to create green
Green Finance activities of the Bank: awareness which will provide attention to the
following aspects:
Environmental
2016 2017 2018
Activities Save Paper save Trees (Every ton of
Direct Green BDT 32.50 BDT 9.45 BDT 6.90 paper involves l7 trees).
Finance million million million
BDT BDT BDT Maximum communication through e-mail
In-direct Green
17,500.00 14,100.00 12,565.00
Finance Purchase recycled paper.
million million million
Print on reusable sheets.
Southeast Bank arranged several training
Print multiple pages on single sheets of paper.
programs and workshops on green banking and
environmental risk management. Set defaults to print double-sided and print on
both sides.
Environmental Risk has been incorporated in
credit proposals and plays an important role in Print only the pages required.
decision making. Preview documents before printing.
The Bank has introduced Green Awards to Increase margin width of the documents.
encourage individuals and organizations
Introduction of Biometric Attendance system.
who are actively working to protect the
environment and tackle the risks of climate Change the default font size from 12 point to
change through green business, environment- l0 which would shrink your document by about
friendly operations, community investment and 10%.
243
Use e-mail statements. Using post-consumer Unplug electronics. Cell phone chargers, TVs,
waste recycled paper internally (copy and DVD players, stereos, microwaves and other
printer paper) and externally (brochures, etc.) electronics with transformers continue to draw
power, even when they're off or not charging
Shredding and recycling all paper internally
anything, as long as they're plugged in.
Sharing electronic files, voice mail and e-mail
Turn off the tap while brushing teeth and of
instead of paper memos
course after use.
Both side printing (two-sided) when possible as
Always use a cloth bag. Do not use paper or
well as limiting printed materials.
plastic bags for your grocery.
Plant or help plant more trees and preventing the Global Climate Partnership Fund and
cutting of the existing ones, contribute towards the Green Climate Fund
making of a healthy planet at no extra cost.
SEBL takes pride for its partnership with a prominent
Pay your bills online. For every 38,000 bills paid Energy Fund named Global Climate Partnership
online, 5,058 pounds of greenhouse gases are Fund (GCPF) managed by RespoosAbility AG of
avoided and two tons of trees are preserved. Switzerland up to 2018, we could draw US$ 20.00
million.
Use Car pools to go to work. Avoiding 10 miles
of driving every week would eliminate about 500 Earlier SEBL got two technical assistance from
pounds of carbon dioxide emissions a year. Frankfurt School of Management and Finance (a
Drive responsibly. Every gallon of gas bumed renowned European Educational Institution) and
emits 20 pounds of carbon dioxide. “Enclude” (An Advisory group of Netherlands). The
Use LED lights. Compact Fluorescents Lights Bank made significant progress in 2018 to receive
produce the same amount of light as normal GCF funding from UNFCCR.
bulbs, but use about a quarter of the electricity
and last ten times longer.
244
a bank with vision
Green Banking Initiatives-

Environmental and Social Obligation
Green Banking or Sustainable Finance refers to any form of financial service
integrating environmental, social and governance (ESG) criteria into the
business or investment decisions for the Iasting benefit of both clients and
society at large.
Southeast Bank recognizes that balancing non- due diligence review. We train relevant employees
financial factors such as environmental and social to take responsibility for and implementation of
issues with financial priorities is an essential part these policies.
of good corporate citizenship, in addition to being
fundamental to risk management and protecting In this connection, various steps have been taken
investors. to minimize the bank's direct operational impact to
the environment to reduce paper usage and help
We recognize that the policies and practices we save trees reduce energy & water consumption.
adopt today will shape not only our lives but also In 2016, Southeast Bank developed a new Social
those of future generations. We therefore have and Environmental Risk management system in
an opportunity to make a positive contribution to line with Bangladesh Bank's draft guide line, IFC's
environmental and social concerns by enacting Performance Standard (PS) and Global Climate
policies so that our business operations do Partnership Fund Guidelines.
not degrade the environment or cause social
harm. Such policies not only indicate positive The Bank prioritizes and actively seeks projects with
environmental responsibility, but also present direct or indirect environmental benefits which will
business opportunities such as innovative financial contribute in reducing pollution in the country.
products and investments in sustainable forestry
and renewable energy. This will help us better Environmental Due Diligence Checklist is
manage our risks, develop expertise and provide meticulously followed while financing new customers
clients with solutions to evolving exposures. and extending credit facilities to existing customers.
Environmental Risk Rating (EnvRR) is now mandatory
To demonstrate our commitment, Southeast Bank for all individual customers (corporate, institutional,
has adopted a comprehensive environmental and personal, small and medium enterprise) whose
social policy. The policy implemented with Social & aggregate facilities are above the following financing
Environmental Management System that includes thresholds:
planning, training, implementation, measurement,
reporting and review and applies to new business For Small and Medium Enterprise-financing
and existing business that comes up for renewal >BDT 2.5 million
or enhancements. Specifically, we integrate
environmental and social awareness into the For Corporate-Financing> BDT 10 million
credit analysis and financing decision process and For Real Estate-Financing> BDT 10 million
incorporate it, where appropriate, as part of our
Comparative position of Environmental Risk Rating conducted by the Bank is as follows:
Environmental Activities 2016 2017 2018
Around 600 proj ects/ Around 630 projects/ Around 680 projects/
Environmental Risk Rating clients loan proposal were clients loan proposal clients loan proposal
rated. were rated. were rated.
245
Report on Human Capital and

HR Accounting
The Corporate Vision of Southeast Bank Limited (SEBL) is to build up such
an institution that can stand the test of time and one day blossom into the
number one Bank of the country. The cherished Mission will be accomplished
through providing excellent services to take the Bank to the doorsteps of the
clients as a customer friendly Bank.
Human Resources Division plays a lead role to vision and mission statement. Skilled employees can
address the above vision and mission statement of also be empowered to train other employees, the fact
the Bank by offering different categories of excellent that reduces pressure for the management team.
services to the clients through effecient and skilled Because of the practical implications of training, it is
human resources of the Bank. important to have training that is effective
The Bank considers its employees as human capital. As a part of capacity building of the human
The Bank believes that the employees are the key resources, in addition to the own training institute,
forces behind the success in banking business in the bank sent 63 officials of different grades at
the face of prevailing competitive market situation. Bangladesh Institute of Bank Management (BIBM),
In order to ensure sustained growth objectives, 29 officials at Bangladesh Bank Training Academy
the Bank evolves a proper manpower planning (BBTA), 108 officials at different institutes at home
approach in determining the movement of the Bank and 28 officials to abroad. Total 228 officials were
from its current manpower position to the desired sent round the year to take part in different training/
/ optimum position, ensuring the right number and workshop/seminar at home and abroad.
right kind of people at the right time.
Human Resource Position
The Bank is committed to attract, develop, motivate
and retain a competent as well as skilled human Employees are essential to achieve the goals and
capital. The Human Resources Division implements objectives of an organization. The Bank has different
the various fringes benefits other than salary, segments of human resources that are of the
allowances, bonuses etc. for the employees that same age or within a specified range of ages. The
attract and retain the workforce in the Bank. permanent employees of the Bank stood at 2,797
as on December 31, 2018 out of which Executives
The Bank respects all employees as unique (Assistant Vice President and above) were 247,
individuals with fundamental human rights and Officers 2,058 and Sub-staff 492.
supports the cultural and ethnic diversity of
its workforce. It believes that creating a work No. of human resource by Age Group for the Year
environment that enables to attract, retain and 2018:
fully engage diverse talents, leads to enhanced
innovation and creativity in the services of the Bank. Age Group Total (%)
The Bank gives topmost priority for development of Below 30 435 15.42
its human resources and arranges effective training 30-39 1,353 48.56
for developing skilled professional manpower. The
effective training helps the employees’ career paths 40-49 795 29.59
which ultimately benefit the bank in reducing cost. 50 and above 214 6.43
The main objectives of employees’ training and
development are to help the organization achieve its Total 2,797 100
246
a bank with vision
The Bank focuses recruitment of fresh blood which capital, technology etc.) which are passive, human
infuses dynamism and help in building Bank's own resources are endowed with discretionary decision-
professional cadre. Besides, the Bank recruits making power and thus have competitive advantage
experienced bankers for different fields in various over the other resources. Besides, HR combines
positions. In the year 2018, the Bank recruited a other resources in the right mix to formulate
total number of 285 employees. Out of them, 229 appropriate strategies for the accomplishment of
were fresh entrants and 56 were experienced the desired objectives of the Bank. This essential
bankers. Besides, as part of Bank’s commitments attribute of HR assists to make rightful decisions
to the community in the field of education, 668 and helps respond effectively to the threats and
numbers of students of different universities were opportunities within the environment of the Bank.
given opportunity to complete their internship Thus, the Bank depends highly on its HR for success
program in the Bank during the year 2018. and survival.
Human Resource Accounting (HRA) The objective of Human Resource Accounting (HRA)
of the Bank is to manage human resource properly
Human Resources (HR) are the life blood of an and develop the quality of “human assets”. HRA
provides the information on total cost of human
organization. Despite the application of technology
assets for business by comparing it with the benefits
in modern business management, human resources
provided by the employees. The Bank strives for
are still relevant and most adaptive resources of the
continuous development of its human resources
organization. The strategic values of HR stem from
and considers any expenditure incurred on human
the fact that apart from other resources employed for
resource development as investment with potential
providing service to the customers/borrowers (land,
future benefits.
An overview of HRA for last five years (2014 to 2018) is given below:
(BDT in million)
Particulars 2014 2015 2016 2017 2018
Employee (Person) 2,221 2,376 2,616 2,704 2,797
Operating cost per employee 1.49 1.51 1.60 1.76 1.78
Training cost per employee (excluding sub-staff) 0.0016 0.0018 0.0027 0.0038 0.0020
Operating profit per employee 3.70 3.39 3.25 3.32 3.48
Salary cost as % of operating profit 16.29 17.40 20.25 20.24 20.57
Gender Diversity family background, ethnicity, personal appearance

etc. All employees treat each other with respect
Gender diversity deals with equal representation and courtesy. Harassment in any form including
of men and women in the workplace. The Bank verbal and physical conduct, visual displays, threats,
is committed to provide equal opportunity in demands and retaliation is strictly prohibited.
employment on the basis of individual merit and
The Bank is committed to create an environment
personal qualifications to employees. Every male
free from all forms of discrimination towards
and female employee works in a professional
female employees. Any discriminatory behavior
atmosphere that promotes equal opportunities directed at female employees based on their
where discriminatory practices, including background, gender, religion, race, color, ethnicity,
harassment are prohibited. national origin, age, marital status, physical
condition, personal appearance, and status is dealt
The Bank provides wonderful work environment with appropriate disciplinary action. Both male and
where all employees can work freely and without female employees are equally treated without any
any harassment on grounds of religion, age, gender, biasness.
247
Gender diversity of the employees for the last five years (2014-2018) is given below:
2014 2015 2016 2017 2018

No. of No. of No. of No. of No. of
% % % % %
Employees Employees Employees Employees Employees
Male 1,818 81.86 1,952 82.15 2,170 82.95 2,245 83.03 2,304 82.37
Female 403 18.14 424 17.85 446 17.05 459 16.97 493 17.63
Total 2,221 2,376 2,616 2,704 2,797
Corporate Organogram properly, as the connecting lines on the chart show

who is accountable to whom and who is Divisional
The corporate organogram of the Bank is an intuitive Head/in-charge of what Division/Department. The
reflection of organization structure, one of the most ogranogram of the Bank also guides the employees
common diagrams to illustrate the relationships as to whom they should report and contact in case
among departments and superiors vividly and of the issues that need to be resolved in a timely
manner while making the employees aware of their
briefly. Organogram of the Bank shows the
rights and responsibilities.
correlation among organizational units in the form
of graphics. It provides great convenience for people
The Bank’s organogram is not just a snapshot of
to view detailed information on organizational units
the Bank at a particular point of time or a blueprint
as well as the associated position and personnel. of its functions, but it is cited as a valuable means
The Bank’s organogram graphically illustrates the of a detailed representation through which the
chain of commands and shows the flow of authority, management understands how the work fits in
responsibility and communication. The organogram all the related departments or units of the Bank.
of the Bank ensures that the responsibilities are It creates a road-map for how the work is to be
being allocated, activities are being performed and done and the process required to ensure this
management authority has been established in a information is shared throughout the Bank, to the
way as needed. right individuals.
The organogram not only helps in dividing the The Human Resources Division maintains the
functions of the Bank in an appropriate manner, corporate organogram of the Bank by updating
but it also aids to a great extent in developing the it with new hires and when employees change
structure of reporting while guiding the employees positions or leave the Bank.
248
a bank with vision
Policy to encourage employees to

participate in Management
Participatory management is beneficial to process gives them a psychological satisfaction. It is
organization as well as employees. It gives employees a simple force that drives the employees to improve
a higher degree of enjoyment at workplace that their performance, create a proper channel of
drives them to work harder. It is equally rewarding communication and find practical solutions to
for the management as it ensures significant design better organizational processes.
improvement in work culture within the organization
as well as increase productivity. The Bank believes
Participatory management is one of the most
that participatory management quickly cures poor
effective policies of the Bank to retain the best
morale, employee attrition, low productivity and job
dissatisfaction. talent in the Bank. It gives employees a sense
of pride to have a say in organizational decision
Joint decision making at certain levels in organization making process. Once they are valued by their
through participatory management can work seniors, they stick to the organization and become
wonders. It makes the best use of human capital management’s partners in meeting specific goals
and when employees have a say in decision making and achieving success.
Whistle
Blower Policy
Employees of the Bank are vigilant about frauds, provide an avenue for employees to raise concerns
theft or illegal activities and shall not engage in such on any violations of legal or regulatory requirements,
activities at any cost. If any such activity comes into misrepresentation of any financial statements and
any employee's notice, he/she brings it to the notice reports, etc.
of the higher authority of the Bank for appropriate
action. He/she acts as a whistle blower thereby.
For disclosure of classified information of the Bank,
The Bank protects whistle blowers. If one raises a
the concerned employee shall require prior approval
concern, he/she will not be at risk of suffering any
from competent authority before making public
form of reprisal or retaliation.
disclosure. In this respect, the Bank complies with
The Bank is committed to adhere to the highest the provisions contained in the “Right to Information
standards of ethical, moral and legal conduct of Act - 2009”. As per requirement of the law, Mr. S.
business operations. To maintain these standards, M. Mainuddin Chowdhury, Additional Managing
the Bank encourages its employees who have Director of the Bank is the ‘Responsible Officer’ to
concerns about suspected misconduct to come make public disclosure of information on behalf of
forward and express these concerns without fear of the Bank. The Managing Director of the Bank is the
punishment or unfair treatment. This policy aims to ‘Appellate Authority’ in this respect.
249
Contribution to
National Economy
Southeast Bank Limited (SEBL) has transformed itself to be one of the leading
contributors to the growth of national economy by providing diverse banking
services to the people and business entities. Southeast Bank Limited along
with its 135 branches operating nationwide has been contributing immensely
to the ever-growing national economy. SEBL formulates its business strategies
in conformity with the national economic policies. The bank is committed
to building relationships with the community within which it operates. SEBL
has been widening its network of Branches to promote financial inclusion.
The Bank is providing Mobile Financial Services (MFS) through its exclusive
product branded as “Telecash”. The product has enabled the people of all
classes living both in rural and urban areas to avail banking and financial
services at their doorsteps.
The role of Small and Medium Enterprises (SMEs) etc. SEBL has been consistently expanding its
is very important for overall economic development Foreign Exchange operation. The bank managed
of Bangladesh. During the year 2018, SEBL BDT 242,294.82 million and BDT 190,402.80 million
invested BDT 58,920.00 million in SME sector and in total import and total export respectively. SEBL
BDT 3,541.00 million in agricultural sector of the takes immense pride in contributing to the national
country. Inward remittance has been the second exchequer in the form of corporate tax, withholding
highest source of foreign currency earnings of tax, excise duty and VAT. The Bank paid a total
Bangladesh. Inward remittance through SEBL by of BDT 5,771.73 million as corporate tax to the
the expatriates living abroad amounted to BDT national exchequer. The bank has been awarded as
116,803.00 million in 2018. the country’s 4th highest Income Tax Payer in the
Banking Category for the assessment year 2017-
In addition to lending significantly to the industrial 2018.
and services sectors as a whole , the bank invested a
significant amount in environment friendly projects SEBL is committed to playing active part in the
like renewable energy, auto brick kiln, bio-gas, solar growth of the national economy through its existing
home system, establishment of ETP, ensuring work business strategies and also through devising
environment and security for workers of textile innovative products and services in days to come.
and garments industry, fire and safety measures
250
a bank with vision
Value Added
Statement
The value added statement for the Bank shows how the value is created
and distributed among different stakeholders of the Bank. Value added to
the Bank stood at BDT 7,095.98 million as of December 31, 2018 as against
BDT 6,412.31 million in 2017.
2018 % 2017 %
Particulars
Taka Taka
Income from Banking Services:
Interest and similar income on loan portfolios 23,977.84 17,400.55
Investment income 5,129.75 5,570.65
Commission, Exchange and Brokerage 3,652.78 3,462.93
Other Operating Income 979.45 871.78
33,739.81 27,305.90
Less: Cost of Services & Supplies
Interest paid on Deposits & Borrowings 18,777.90 13,372.86
Rent, Taxes, Insurance, Lighting etc. 1,031.57 899.48
Legal expenses 1.30 1.83
Postage, Stamp, Telegram & Telephone 182.35 176.22
Stationery, Printing, Advertisement 165.64 149.55
Directors' Fees and Expenses 2.93 3.79
Audit Fee 1.85 1.91
Repairs to Bank's property 85.56 79.16
Other expenses 1,280.40 1,328.58
21,529.49 16,013.37
Value Added by the Banking Services 12,210.32 11,292.53
Add: Non-banking income - -
Less: Provision for loans and advances/investments
Specific provision on loan loss (4,974.29) (3,781.32)
Transfer to general provisions 119.21 (1,010.61)
Provision for Off-Balance Sheet Exposures 223.80 (285.50)
Provision for diminution in value of Investment (413.06) 217.21
Provision for Other Assets (70.00) (20.00)
(5,114.34) (4,880.22)
Value Added 7,095.98 6,412.31
Distribution of Value Addition
Employees-as Salaries and Allowances 2,026.52 29% 1,843.99 28.76%
Transfer to SEBL Foundation - 0.00% - 0.00%
Provider of Capital - as dividend 1,054.49 14.86% 1,375.43 21.45%
Government - as income tax 2,195.45 30.94% 3,013.45 46.99%
Expansion & Growth:
Statutory Reserve 924.15 13.02% - 0.00%
Retained Earnings 504.63 7.11% (196.79) -3.07%
Depreciation 390.73 5.51% 376.23 5.87%
7,095.98 100% 6,412.31 100%
Wealth Distribution of 2018 Wealth Distribution of 2017

(Data in %) (Data in %)
7% 5% To employees as salaries -3% 6% To employees as salaries
and allowances and allowances
0%
To SEBL Foundation To SEBL Foundation
13% 29% 27%
To Shareholders as dividend To Shareholders as dividend
To Government as income tax To Government as income tax
0% Statutory Reserve 0% Statutory Reserve

31% 44%
15% Retained Earnings 20% Retained Earnings
Depreciation Depreciation
251
Economic Value
Added Statement
Economic Value Added (EVA) indicates the true economic profit of a
company. EVA is an estimate of the amount by which earnings exceed or fall
short of required minimum return for shareholders at comparable risks.
EVA of the bank stood at BDT 2,928.22 Million as of December 31, 2018 as
against BDT 1,848.47 Million in 2017.
Economic Value Added

BDT in Million
Particulars 2018 2017
Total Revenue 33,739.81 27,305.90
Less : Expenses (Interest & Operating) (23,956.82) (18,243.60)
Less : Corporate Tax (2,195.45) (3,013.45)
Less : Capital Charges (4,659.33) (4,200.38)
Economic Value Added 2,928.22 1,848.47
Capital Charges = Required Rate of Return X Total Capital & Reserves

Required Rate of Weighted average rate of 10 years treasury bond @ 9.99% +Risk Premium @ 2%
Return (11.99%) = in 2018
Weighted average rate of 10 years treasury bond @ 10.44% +Risk Premium @
2% in 2017
Total Capital &
Reserves = BDT 38,860.11 million in 2018 (BDT 33,765.13 million in 2017)
Economic Value
Added = Total Revenue - (Expenses + Corporate Tax + Capital Changes)
Economic Value Addition

(BDT in Million)
2,012.92 3,561.16 1,838.86 1,848.47 2,928.22
2014 2015 2016 2017 2018
252
a bank with vision
Market Value
Added Statement
Market Value Added (MVA) is the difference between the equity market
value of a company and the book value of equity invested in the company. A
high MVA indicates that the company has created substantial wealth for the
shareholders. MVA is equivalent to the present value of all future expected
Economic Value Added (EVA). The equity market value of the Bank stood
at BDT 16,502.81 million whereas the book value of equity stood at BDT
10,544.93 million, resulting a Market Value Added of BDT 5,957.88 million as
of December 31, 2018 as against Tk. 11,186.79 million in 2017.
Particulars 2018 2017
Market Value of Total Equity 16,502.81 20,356.29
Less: Book Value of Equity (share capital) (10,544.93) (9,169.50)
Market Value Added 5,957.88 11,186.79
Total Number of Shares outstanding = 1,054,492,702 916,950,176
Market Value per Share = 15.65 22.20
[Total Number of shares outstanding X Market value per share as

Market Value of Total Equity =
on 31.12.18]
Market Value Added = [Market Value of Total Equity] - [Book Value of Equity]
Market Value Addition

(BDT in Million)
8,665.18 7,014.67 8,023.32 11,186.79 5,957.88
2014 2015 2016 2017 2018
253
254
Communication to Shareholders and
Stakeholders
Redressal of Investors’ Complaints 256-257
Communication to Shareholders 258
Reminders to the Shareholders who have not encashed their Dividends 259
Financial Highlights 260
Key Financial Data and Ratios 261-268
Segment Information 269-273
Ownership Composition – 2018 274
Market Price Information 275
Financial Calendar 2018 276
Stakeholder Engagement Process 277
Memories of 23rd AGM 278-283
Redressal of
Investors’ Complaints
Southeast Bank ensures equal treatment to all shareholders. The Bank does
not discriminate between minority and majority shareholders. To ensure
equal treatment to all shareholders, the bank created various mechanisms,
such as:
i) Shareholders who are unable to attend the Those are also timely taken up and resolved.
shareholders’ meeting are provided with proxy The concerned investors and the DSE/CSE are
forms to nominate proxy to attend and vote informed regarding resolution of the complaint.
on their behalf. The proxy forms which are in
accordance with the standard format are sent SEBL follows the following principles in
along with the annual report. dealing with the Investors :
ii) The shareholders’ meetings proceed in Fair treatment;

accordance with the order of agenda, without
Timeliness in the resolution of investors’
adding new and uninformed agenda, to give
complaints;
shareholders the opportunity to study the
information on the given agenda before Information to investors about the resolution of
the poll. Moreover, important information their complaints;
for the shareholders’ meetings are not Friendliness with all investors and all investor
changed abruptly to the disadvantage of the segments;
shareholders. Protection of investors’ interest;
iii) The bank sees the importance of the How we know about Investors' Compliants:
consideration of transactions which may
have conflict of interest or may be connected
or related transactions and abides by good An investor can complain through email
corporate governance principles, including irdsebl@southeastbank.com.bd.
the rules and regulations of the Bangladesh
An investor can make a written complaint
Securities and Exchange Commission and the
through a letter.
Dhaka Stock Exchange Ltd. and the Chittagong
Stock Exchange Ltd. Directors, management The company maintains Investor Grievance
and those who are related persons do not Registry in electronic Form in which full details
participate in the consideration to approve of every written compliant are recorded.
such transactions.
We have 3 designated persons who look after
iv) The bank continues to have regular the investor grievances within a timeframe.
communication with the shareholders through The full details of the written complaint are
periodic updates of performance and at any passed on to the concerned department. The
other time when it believes it needs to be done compliance officer of the Company must be
in the best interest of shareholders. apprised of it as soon as it is received.
v) At times, the investors lodge complaints. These A letter or email is sent to the investor who has
complaints are timely resolved. Investors at submitted written complaint by the designated
times lodge complaints through DSE and CSE. person or compliance officer acknowledging
256
a bank with vision
receipt of the complaint and informing him/her Bangladesh Securities and Exchange Commission,
of the process for suitable decision. Bangladesh Bank, The Dhaka Stock Exchange
The Investors’ Complaints are thoroughly Limited and The Chittagong Stock Exchange Limited
enquired as and when necessary. for their reference. Investors may read them at
public reference room or library.
Availability of information for Investors’
about Southeast Bank Limited Investors’ Inquiries
Queries of Investors’, for example, information

Annual Report of each year and other relevant
relating to transfer of their shares and payment
information about SEBL may be viewed on
status of their dividend, are to be sent to the
SEBL’s website www.southeastbank.com.bd. The
following address:
Bank provides copies of Annual Reports to the
Investors’ Relation Department
Address : Southeast Bank Limited

Head Office
Eunoos Trade Centre (Level-2)
52-53, Dilkusha C/A, Dhaka-1000
Web Address : www.southeastbank.com.bd
E-Mail : irdsebl@southeastbank.com.bd
Mobile : +88 01700706532
Phone : +8802 9567271
Fax : +8802 9567273
257
Communication to
Shareholders
Throughout the year we communicate with Shareholders in the following ways:
a By Publishing Price Sensitive Information (PSI) in National dailies and in Online News Portal;
b By releasing PSI via website of DSE and CSE and also in Bank website:
www.southeastbank.com.bd
c By publishing Press Release about Bank’s important events in the newspapers;
By issuing notices to the Shareholders for holding Annual General Meeting every year and
d Extra-Ordinary General Meeting (as and when necessary);
e By sending the Annual Reports of the Bank every year;
f By sending the Right Offer Document (ROD) as and when required;
g By publishing Financial Statements in the newspapers;
h By holding General Meetings of Shareholders;
i By holding dialogue with Shareholders;
j Electronic and other means of communications with Shareholders:
Bank’s website
i Call Centre (24X7); ii www.southeastbank.com.bd
Investors’ Relation Department

iii Web-chat; iv (during office hours);
E-mail communication,
v Short Message Service (SMS); vi irdsebl@southeastbank.com.bd.
vii Letter communication;
258
a bank with vision
Reminders to the Shareholders who

have not encashed their Dividends
We remind our Shareholders to Collect/encash their dividend warrants in the following manner:
We release notice to Newspapers to notify our shareholders to collect their respective

a dividend warrants.
Any shareholder who visits our Investors’ Relation Department, we remind him/her about
b Collection /encashment of their dividend warrants.
When shareholder calls us over the phone, we remind him/her about Collection/ encashment
c of their dividend warrants.
We send Short Message Service (SMS) to the shareholders to Collect/encash their dividend
d warrants.
259
Financial
Highlights
BDT in million
Group Bank
Particulars
2018 2017 Change % 2018 2017 Change %
Performance During the Year
Net Interest Income 5,199.94 4,027.69 29.10% 5,175.82 4,006.66 29.18%
Non Interest Income 9,761.98 9,905.35 -1.45% 9,547.79 9,667.67 -1.24%
Operating Income 14,961.92 13,933.04 7.38% 14,723.61 13,674.32 7.67%
Operating Profit 9,783.00 9,062.30 7.95% 9,735.10 8,939.13 8.90%
Profit After Tax 2,473.21 1,168.63 111.63% 2,455.77 1,118.30 119.60%
Year End Financial Position
Loans 267,671.63 234,316.72 14.23% 265,204.21 231,851.00 14.39%
Investments 65,609.55 62,911.04 4.29% 62,883.76 60,323.17 4.24%
Deposits 298,334.79 269,828.08 10.56% 298,320.59 269,833.09 10.56%
Shareholders Equity 28,116.66 25,823.65 8.88% 28,051.34 25,761.74 8.89%
Total Assets 381,575.68 339,288.05 12.46% 381,094.92 338,909.25 12.45%
Earnings per share(BDT) 2.35 1.11 111.71% 2.33 1.06 119.81%
Dividend (%) 10% 15% -33.33% 10% 15% -33.33%
Price earning ratio(times) 6.66 20.00 -66.70% 6.72 20.94 -67.93%
Net asset value per share(BDT) 26.66 28.16 -5.32% 26.60 28.10 -5.32%
Market price per share(BDT) 15.65 22.20 -29.50% 15.65 22.20 -29.50%
Ratios (%)
Capital adequacy ratio(as per Basel
12.38% 10.84% 14.21% 12.47% 10.87% 14.72%
III)
Non performing loans 5.87% 5.99% -1.99% 5.87% 5.99% -1.94%
Cost to income ratio 34.61% 34.96% -0.98% 33.88% 34.63% -2.16%
260
a bank with vision
Key Financial Data, Ratios and

Graphical Presentation
BDT in million
Particulars 2018 2017 2016 2015 2014
BALANCE SHEET MATRIX
Authorized Capital 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00
Paid up Capital 10,544.93 9,169.50 9,169.50 9,169.50 9,169.50
Reserve Fund & Surplus 28,315.19 24,595.63 24,886.78 19,340.03 18,292.59
Total Shareholders’ Equity 28,116.66 25,823.65 26,523.56 27,206.66 24,543.21
Deposits 298,334.79 269,828.08 229,973.43 210,431.09 189,472.54
Loans and Advances 267,671.63 234,316.72 191,865.59 168,878.46 147,070.81
Investments 65,609.55 62,911.04 61,731.63 58,829.27 56,378.59
Fixed Assets 9,337.30 9,321.80 8,947.16 7,885.23 7,913.00
Total Assets 381,575.68 339,288.05 291,798.01 260,718.03 236,608.40
Total Off Balance Sheet Items 145,504.93 142,496.79 113,910.63 88,522.24 92,184.70
Interest Earning Assets 331,101.81 291,947.38 254,120.97 225,546.44 203,449.40
Non-Interest Earning Assets 50,473.87 47,340.68 37,677.04 35,171.59 33,159.00
INCOME STATEMENT MATRIX
Interest Income 23,977.84 17,400.55 16,972.33 17,794.80 19,233.89
Interest Expenses 18,777.90 13,372.86 12,765.12 14,656.34 16,049.91
Investment Income 5,129.75 5,570.65 5,079.61 5,158.54 5,274.27
Non-Interest Income 4,632.22 4,334.70 3,565.64 3,307.39 3,158.93
Non-Interest Expenses 5,178.92 4,870.74 4,349.23 3,570.11 3,327.43
Total Income 33,739.81 27,305.90 25,617.57 26,260.72 27,667.09
Total Expenditure 23,956.82 18,243.60 17,114.35 18,226.45 19,377.34
Operating Profit 9,783.00 9,062.30 8,503.22 8,034.27 8,289.76
Profit before Tax 4,668.66 4,182.08 5,290.60 5,517.48 6,760.66
Net Profit after Tax 2,473.21 1,168.63 2,435.07 3,069.42 3,836.94
CAPITAL MATRIX
Risk Weighted Assets 313,960.92 311,557.34 280,402.29 247,250.88 221,249.27
Tier-I Capital 23,670.43 21,165.35 21,685.52 21,211.19 19,882.29
Tier-II Capital 15,189.69 12,599.78 12,370.76 7,298.35 7,579.80
Total Capital 38,860.11 33,765.13 34,056.28 28,509.53 27,462.09
Capital Surplus/(Deficit) 1,577.25 (1,285.07) 4,263.54 3,784.44 5,337.16
Tier I Capital ratio 7.54% 6.79% 7.73% 8.57% 8.99%
Tier II Capital ratio 4.84% 4.04% 4.41% 2.95% 3.43%
Total Capital to Risk Weighted Assets Ratio 12.38% 10.84% 12.15% 11.52% 12.41%
CREDIT QUALITY
Classified Loans 15,558.85 13,878.53 9,257.79 7,193.82 5,387.74
Provision for Unclassified Loans 3,321.40 3,440.61 2,430.00 1,540.00 1,334.72
Provision for Classified Loans 9,961.90 6,628.68 3,728.28 2,323.29 2,673.49
Provision for Contingent Liabilities 1,201.20 1,425.00 1,139.50 890.00 909.65
Percentage of NPLs to total Loans and
5.87% 5.99% 4.89% 4.25% 3.64%
Advances
261
BDT in million
Particulars 2018 2017 2016 2015 2014

FOREIGN EXCHANGE BUSINESS
Import 242,294.82 215,379.77 171,531.73 151,812.58 155,691.00
Export 190,402.85 167,562.98 146,606.09 126,423.89 112,137.60
Remittance (Inward) 116,803.00 95,405.43 64,665.84 60,708.50 48,740.50
OPERATING PROFIT RATIOS
Credit Deposit ratio 81.55% 82.12% 83.43% 80.25% 78.09%
Cost of Deposit & Borrowing 6.17% 5.02% 5.51% 7.12% 8.32%
Administrative Cost 1.70% 1.83% 1.88% 1.69% 1.69%
Yield on Loans and Advances 9.55% 8.17% 9.41% 11.30% 13.52%
Spread 3.38% 3.15% 3.90% 4.18% 5.20%
Return on Assets 0.69% 0.37% 0.88% 1.23% 1.67%
Return on Equity 9.17% 4.46% 9.06% 11.86% 16.51%
Debt Equity ratio 12.57 12.14 10.00 8.58 8.64
PERFORMANCE RATIOS
Net Profit per Employee 0.88 0.43 0.92 1.30 1.72
Net Profit per Branch 18.32 8.85 19.02 25.16 33.96
Operating profit as % of Working Fund 2.56% 2.67% 2.91% 3.08% 3.50%
Net Interest income as % of Working Fund 1.36% 1.19% 1.44% 1.20% 1.35%
Efficiency ratio 34.61% 34.96% 33.84% 30.77% 28.64%
Ratio of Fees Income 24.41% 24.85% 22.59% 23.78% 22.96%
Salary Exp. to total Operating Exp. 39.32% 38.06% 40.32% 39.88% 40.92%
Salary Exp. to Fees Income 55.75% 53.54% 60.40% 51.59% 51.05%
Cost to Income ratio 34.61% 34.96% 33.84% 30.77% 28.64%
DIVIDEND & RIGHTS ISSUE
Cash 0% 0% 20% 15% 15%
Stock 10% 15% - - -
Rights Issue - - - - -
SHARES INFORMATION MATRIX
No. of Shares Outstanding 1,054.49 916.95 916.95 916.95 916.95
Earnings Per Share ( Actual Figure) 2.35 1.11 2.66 3.35 4.18
Number of Shareholders ( Actual Figure) 33,851 36,038 39,009 46,285 58,169
Market Value Per Share-DSE ( Actual Figure) 15.60 22.20 18.70 17.60 19.40
Price Earnings ratio 6.66 17.42 7.06 5.27 4.67
Net Assets Value Per Share 26.66 28.16 28.93 29.67 26.77
Dividend Cover ratio 0.64 1.18 0.75 0.45 0.36
OTHER INFORMATION
Number of Branches 135 132 128 122 113
Number of Islamic Windows 5 5 5 5 5
Number of Employees 2,797 2,704 2,616 2,376 2,221
Number of Foreign Correspondents 644 825 807 811 790
262
a bank with vision
Horizontal
Analysis
Balance Sheet BDT in million
2018 2017 2016 2015 2014

Particulars 2018 2017 2016 2015 2014
(%) (%) (%) (%) (%)
PROPERTY AND ASSETS
Cash
In hand (including foreign
225 3,598.85 188 3,010.98 152 2,432.62 119 1,903.29 100 1,598.09
currencies)
Balance with Bangladesh Bank
129 17,916.58 130 17,968.15 111 15,402.83 102 14,093.70 100 13,859.38
(including foreign currencies)
Balance with other banks and
- - -
financial institutions
In Bangladesh 93 3,984.79 75 3,196.88 67 2,860.09 51 2,187.97 100 4,283.51
Outside Bangladesh 165 2,449.64 73 1,082.73 80 1,185.13 81 1,203.35 100 1,482.74

Money at call and on short
1258 6,897.10 665 3,643.95 779 4,271.34 168 923.45 100 548.30
notice
Investments - - -
Government 102 50,963.04 100 50,204.80 108 54,299.80 105 52,620.79 100 50,185.30
Others 236 14,646.51 205 12,706.24 120 7,431.83 100 6,208.48 100 6,193.29
Loans, cash credit, overdrafts etc./
180 255,400.66 158 223,657.50 129 182,661.82 114 161,556.32 100 141,778.21
investments
Bills purchased and discounted 232 12,270.97 201 10,659.21 174 9,203.77 138 7,322.14 100 5,292.59
Fixed assets including premises,
118 9,337.30 118 9,321.80 113 8,947.16 100 7,885.23 100 7,913.00
furniture and fixtures
Other assets 118 4,110.24 110 3,835.80 89 3,101.61 139 4,813.31 100 3,473.97
Total assets 161 381,575.68 143 339,288.05 123 291,798.01 110 260,718.03 100 236,608.40
Liabilities - - -
Borrowings from other banks,
245 11,800.00 211 10,181.65 153 7,371.64 95% 4,556.92 100 4,815.92
financial institutions and agents
Subordinated bond 374 11,211.70 7,400.00 8,000.00 3,000.00 3,000.00
Deposits and other accounts - - -

Current/Al-wadeeah current
214 40,472.07 188 35,511.53 160 30,285.06 122 23,179.89 100 18,935.05
accounts and other accounts
Bills payable 166 4,494.55 183 4,933.77 242 6,548.86 79 2,127.21 100 2,701.46
Savings bank/Mudaraba savings
201 27,259.92 177 23,896.58 146 19,700.58 136 18,419.86 100 13,531.82
bank deposits
Fixed deposits/Mudaraba fixed
147 226,108.26 133 205,486.20 112 173,438.93 108 166,704.14 100 154,304.20
deposits
Other liabilities 2020 298,334.79 176 26,044.63 135 19,919.38 105 15,513.93 100 14,766.54
Total liabilities - - -
Capital/shareholders' equity - - -
Paid up capital 115 10,544.93 100 9,169.50 100 9,169.50 100 9,169.50 100 9,169.50
Statutory reserve 130 10,094.15 118 9,170.00 118 9,170.00 114 8,897.31 100 7,792.81
263
2018 2017 2016 2015 2014

Particulars 2018 2017 2016 2015 2014
(%) (%) (%) (%) (%)
Revaluation reserve 93 4,360.80 97 4,534.24 102 4,763.89 128 5,968.13 100 4,670.87
Other reserve 100 247.65 100 247.65 100 247.65 100 247.65 100 247.65
Foreign currency translation
-11900 (28.92) -5820 (14.14) -10061 (24.45) -11468 (27.87) 100 0.24
reserve
Retained earnings 109 2,898.04 102 2,716.40 120 3,196.97 111 2,951.94 100 2,662.14
Total shareholders' equity 115 28,116.66 105 25,823.65 108 26,523.56 111 27,206.66 100 24,543.21
Non-controlling interest 99 10.07 99 10.05 98 10.00 93 9.43 100 10.18

Total liabilities and
161 381,575.68 143 339,288.05 123 291,798.01 110 260,718.03 100 236,608.40
shareholders' equity
Acceptances and endorsements 208 63,853.76 186 57,138.53 143 43,813.55 118 36,223.42 100 30,725.22
Letters of guarantee 135 19,197.99 112 15,924.96 106 15,154.12 94 13,395.24 100 14,253.37
Irrevocable letters of credit 116 36,374.56 141 44,195.14 105 32,881.30 80 24,992.38 100 31,246.71
Bills for collection 167 24,664.93 154 22,666.59 121 17,830.30 87 12,812.74 100 14,739.31
Other contingent liabilities 116 1,413.68 143 1,744.47 121 1,474.68 90 1,098.46 100 1,220.08
Other Commitments 827.10 2,756.66 0 - -

Total off-balance sheet items
158 145,504.93 155 142,496.79 124 113,910.63 96 88,522.24 100 92,184.70
including contingent liabilities
264
a bank with vision
Horizontal
Analysis
Profit and Loss Account BDT in million
2018 2017 2015 2014

Particulars 2018 2017 2016 (%) 2016 2015 2014
(%) (%) (%) (%)
Operating Income
Interest income/profit on
125% 23,977.84 90% 17,400.55 88% 16,972.33 93% 17,794.80 100% 19,233.90
investments
Interest paid/profit
shared on deposits and 117% 18,777.90 83% 13,372.86 80% 12,765.12 91% 14,656.34 100% 16,049.91
borrowings etc.
Net interest income/net
163% 5,199.94 126% 4,027.69 132% 4,207.21 99% 3,138.46 100% 3,183.99
profit on investments
Investment income 97% 5,129.75 106% 5,570.65 96% 5,079.61 98% 5,158.54 100% 5,274.27
Commission, exchange and
137% 3,652.78 130% 3,462.93 109% 2,903.03 103% 2,759.46 100% 2,666.73
brokerage
Other operating income 199% 979.45 177% 871.78 135% 662.60 111% 547.93 100% 492.20
Total operating income
129% 1,4961.92 120% 13,933.04 111% 12,852.45 100% 11,604.39 100% 11,617.19
(A)
Salaries and allowances 149% 2,026.52 135% 1,843.96 128% 1,741.46 105% 1,423.68 100% 1,361.48
Rent, taxes, insurance,
181% 1,031.57 158% 899.48 141% 801.04 116% 658.26 100% 569.34
electricity etc.
Legal expenses 211% 1.30 297% 1.83 97% 0.60 242% 1.49 100% 0.62
Postage, stamp,
125% 1,82.35 121% 176.22 114% 166.45 101% 147.33 100% 145.63
telecommunication etc.
Stationery, printing,
146% 1,65.64 132% 149.55 116% 132.23 99% 112.62 100% 113.72
advertisements etc.
Managing Director's salary
107% 10.07 106% 10.04 127% 11.97 100% 9.45 100% 9.45
and fees
Directors' fees and
85% 2.93 110% 3.79 85% 2.91 77% 2.65 100% 3.43
expenses
Auditors' fees 138% 1.85 143% 1.91 120% 1.60 78% 1.04 100% 1.34
Depreciation and repair of
133% 476.29 128% 455.39 113% 403.60 95% 339.18 100% 356.79
bank's assets
Other expenses 167% 1,280.40 174% 1,328.58 142% 1,087.36 114% 874.41 100% 765.65
Total operating
156% 5,178.92 146% 4,870.74 131% 4,349.23 107% 3,570.11 100% 3,327.43
expenses (B)
Profit before provision
118% 9,783.00 109% 9,062.30 103% 8,503.22 97% 8,034.27 100% 8,289.76
(C=A-B)
General provision -104% (119.21) 883% 1,010.61 778% 890.00 179% 205.28 100% 114.45
Specific provision 511% 4,974.29 388% 3,781.32 242% 2,360.99 209% 2,039.77 100% 974.01
Provision for off-balance
-232% (223.80) 296% 285.50 258% 249.50 -20% (19.65) 100% 96.61
sheet items
Provision for diminution in
126% 413.06 -66% (217.21) -123% (403.60) 82% 269.48 100% 329.03
value of investments
Other provisions 467% 70.00 133% 20.00 772% 115.74 146% 21.91 100% 15.00
Total provision (D) 334% 5,114.34 319% 4,880.22 210% 3,212.62 165% 2,516.79 100% 1,529.10
Total profit before
69% 4,668.66 62% 4,182.08 78% 5,290.60 82% 5,517.48 100% 6,760.66
taxation (C-D)
Provision for taxation 75% 2,195.45 103% 3,013.45 98% 2,855.52 84% 2,448.07 100% 2,923.72
Net profit after taxation 64% 2,473.21 30% 1,168.63 63% 2,435.07 80% 3,069.42 100% 3,836.94
Retained surplus during
62% 1,549.06 47% 1,168.63 87% 2,162.38 79% 1,964.92 100% 2,488.95
the year
Earnings per share (Tk.) 56% 2.35 30% 1.11 64% 2.66 80% 3.35 100% 4.18
265
Vertical
Analysis
2018 2017 2016 2014

Particulars 2018 2017 2016 2015 (%) 2015 2014
(%) (%) (%) (%)
PROPERTY AND ASSETS
Cash In hand (including foreign
1% 3,598.85 1% 3,010.98 1% 2,432.62 1% 1,903.29 1% 1,598.09
currencies)
Balance with Bangladesh Bank
and its agent banks(including 5% 17,916.58 5% 17,968.15 5% 15,402.83 5% 14,093.70 6% 13,859.38
foreign currencies)
Balance with other banks
- 0% - 0% - 0% -
and financial institutions
In Bangladesh 1% 3,984.79 1% 3,196.88 1% 2,860.09 1% 2,187.97 2% 4,283.51
Outside Bangladesh 1% 2,449.64 0% 1,082.73 0% 1,185.13 0% 1,203.35 1% 1,482.74

Money at call and on short
2% 6,897.10 1% 3,643.95 1% 4,271.34 0% 923.45 0% 548.30
notice
Investments - - 0% - 0% - 0% -
Government 13% 50,963.04 15% 50,204.80 19% 54,299.80 20% 52,620.79 21% 50,185.30
Others 4% 14,646.51 4% 12,706.24 3% 7,431.83 2% 6,208.48 3% 6,193.29

Loans and advances/
- - 0% - 0% - 0% -
investments
Loans, cash credit, overdrafts
67% 255,400.66 66% 223,657.50 63% 182,661.82 62% 161,556.32 60% 141,778.21
etc./investments
Bills purchased and discounted 3% 12,270.97 3% 10,659.21 3% 9,203.77 3% 7,322.14 2% 5,292.59
Fixed assets including premises,
2% 9,337.30 3% 9,321.80 3% 8,947.16 3% 7,885.23 3% 7,913.00
furniture and fixtures
Other assets 1% 4,110.24 1% 3,835.80 1% 3,101.61 2% 4,813.31 1% 3,473.97
Non - banking assets 0% - - - - -
Total assets 100% 381,575.68 100% 339,288.05 100% 291,798.01 100% 260,718.03 100% 236,608.40
LIABILITIES AND CAPITAL - - -
Liabilities - - -
Borrowings from other banks,
3% 11,800.00 3% 10,181.65 3% 7,371.64 2% 4,556.92 2% 4,815.92
Subordinated bond 3% 11,211.70 2% 7,400.00 3% 8,000.00 1% 3,000.00 1% 3,000.00
Deposits and other accounts 0% - 0% - 0% - 0% -

Current/Al-wadeeah current
11% 40,472.07 10% 35,511.53 10% 30,285.06 9% 23,179.89 8% 18,935.05
accounts and other accounts
Bills payable 1% 4,494.55 1% 4,933.77 2% 6,548.86 1% 2,127.21 1% 2,701.46
Savings bank/Mudaraba savings
7% 27,259.92 7% 23,896.58 7% 19,700.58 7% 18,419.86 6% 13,531.82
bank deposits
Fixed deposits/Mudaraba fixed
59% 226,108.26 61% 205,486.20 59% 173,438.93 64% 166,704.14 65% 154,304.20
deposits
Bearer certificates of deposit 0% - 0% 0% - 0% - 0% -
Other deposits 0% - 0% 0% - 0% - 0% -
Other liabilities 78% 298,334.79 8% 26,044.63 7% 19,919.38 6% 15,513.93 6% 14,766.54
Capital/shareholders' equity 0% 0% - 0% - 0% -
266
a bank with vision
2018 2017 2016 2014

Particulars 2018 2017 2016 2015 (%) 2015 2014
(%) (%) (%) (%)
Paid up capital 3% 10,544.93 3% 9,169.50 3% 9,169.50 4% 9,169.50 4% 9,169.50
Statutory reserve 3% 10,094.15 3% 9,170.00 3% 9,170.00 3% 8,897.31 3% 7,792.81
Revaluation reserve 1% 4,360.80 1% 4,534.24 2% 4,763.89 2% 5,968.13 2% 4,670.87
Other reserve 0% 247.65 0% 247.65 0% 247.65 0% 247.65 0% 247.65

Foreign currency translation
0% (28.92) 0% (14.14) 0% (24.45) 0% (27.87) 0% 0.24
reserve
Retained earnings 1% 2,898.04 1% 2,716.40 1% 3,196.97 1% 2,951.94 1% 2,662.14
Total shareholders' equity - 2,8116.66 - 25,823.65 - 26,523.56 - 27,206.66 - 24,543.21
Non-controlling interest 0% 10.07 0% 10.05 0% 10.00 0% 9.43 0% 10.18

Total liabilities and
100% 381,575.68 100% 339,288.05 100% 291,798.01 100% 260,718.03 100% 236,608.40
shareholders' equity
OFF-BALANCE SHEET ITEMS - - - - - - - - -
Acceptances and endorsements 44% 6,3853.76 40% 57,138.53 38% 43,813.55 41% 36,223.42 33% 30,725.22
Letters of guarantee 13% 19,197.99 11% 15,924.96 13% 15,154.12 15% 13,395.24 15% 14,253.37
Irrevocable letters of credit 25% 36,374.56 31% 44,195.14 29% 32,881.30 28% 24,992.38 34% 31,246.71
Bills for collection 17% 24,664.93 16% 22,666.59 16% 17,830.30 14% 12,812.74 16% 14,739.31
Other contingent liabilities 1% 1,413.68 1% 1,744.47 1% 1,474.68 1% 1,098.46 1% 1,220.08
Other commitments 0% - 1% 827.10 2,756.66 - -

Total off-balance sheet
items including contingent 100% 145,504.93 100% 142,496.79 100% 113,910.63 100% 88,522.24 100% 92,184.70
liabilities
267
Vertical
Analysis
Profit and Loss Account BDT in million
2018 2017 2016 2015 2014

Particulars 2018 2017 2016 2015 2014
(%) (%) (%) (%) (%)
Operating Income
Interest income/profit on investments 71% 23,977.84 64% 17,400.55 66% 16,972.33 68% 17,794.80 70% 19,233.90
Interest paid/profit shared on
56% 18,777.90 49% 13,372.86 50% 12,765.12 56% 14,656.34 58% 16,049.91
deposits and borrowings etc.
Net interest income/net profit on
15% 5,199.94 15% 4,027.69 16% 4,207.21 12% 3,138.46 12% 3,183.99
investments
Investment income 15% 5,129.75 20% 5,570.65 20% 5,079.61 20% 5,158.54 19% 5,274.27
Commission, exchange and brokerage 11% 3,652.78 13% 3,462.93 11% 2,903.03 11% 2,759.46 10% 2,666.73
Other operating income 3% 979.45 3% 871.78 3% 662.60 2% 547.93 2% 492.20
Total operating income (A) 44% 14,961.92 51% 13,933.04 50% 12,852.45 44% 11,604.39 42% 11,617.19
Salaries and allowances 6% 2,026.52 7% 1,843.96 7% 1,741.46 5% 1,423.68 5% 1,361.48
Rent, taxes, insurance, electricity etc. 3% 1,031.57 3% 899.48 3% 801.04 3% 658.26 2% 569.34
Legal expenses 0% 1.30 0% 1.83 0% 0.60 0% 1.49 0% 0.62
Postage, stamp, telecommunication
1% 1,82.35 1% 176.22 1% 166.45 1% 147.33 1% 145.63
etc.
Stationery, printing, advertisements
0% 1,60.64 1% 149.55 1% 132.23 0% 112.62 0% 113.72
etc.
Managing Director's salary and fees 0% 10.07 0% 10.04 0% 11.97 0% 9.45 0% 9.45
Directors' fees and expenses 0% 2.93 0% 3.79 0% 2.91 0% 2.65 0% 3.43
Auditors' fees 0% 1.85 0% 1.91 0% 1.60 0% 1.04 0% 1.34
Charges on loan losses 0% - 0% - 0% - 0% - 0% -
Depreciation and repair of bank's
1% 476.29 2% 455.39 2% 403.60 1% 339.18 1% 356.79
assets
Other expenses 4% 1,280.40 5% 1,328.58 4% 1,087.36 3% 874.41 3% 765.65
Total operating expenses (B) 15% 5,178.92 18% 4,870.74 17% 4,349.23 14% 3,570.11 12% 3,327.43
Profit before provision (C=A-B) 29% 9,783.00 33% 9,062.30 33% 8,503.22 31% 8,034.27 30% 8,289.76
Provision for loans and advances/
0% 0% 0% - 0% -
investments
General provision 0% (119.21) 4% 1,010.61 3% 890.00 1% 205.28 0% 114.45
Specific provision 15% 4,974.29 14% 3,781.32 9% 2,360.99 8% 2,039.77 4% 974.01
Provision for off-balance sheet items -1% (223.80) 1% 285.50 1% 249.50 0% (19.65) 0% 96.61
Provision for diminution in value of
1% 413.06 -1% (217.21) -2% (403.60) 1% 269.48 1% 329.03
investments
Other provisions 0% 70.00 0% 20.00 0% 115.74 0% 21.91 0% 15.00
Total provision (D) 15% 5,114.34 18% 4,880.22 13% 3,212.62 10% 2,516.79 6% 1529.10
Total profit before taxation (C-D) 14% 4,668.66 15% 4,182.08 21% 5,290.60 21% 5,517.48 24% 6,760.66
Provision for taxation 7% 2,195.45 11% 3,013.45 11% 2,855.52 9% 2,448.07 11% 2,923.72
Net profit after taxation 7% 2,473.21 4% 1,168.63 10% 2,435.07 12% 3,069.42 14% 3,836.94
268
a bank with vision
Segment
Information
Sector-wise Investment Revenue Sources
1% 1%
4% Agriculture
2%
Industrial Manufacturing
11% 3%
Industrial Services
1% Export Financing Interest Income
2%
Commercial Loans Investment Income
Consumer Credit Commission, Exchange
16% Off-Shore Loans and Brokerage
Finance to NBFIs 15% Other Operating Income
Loan to Capital Market
9% 48%
Miscellaneous 71%
16%
Expenditure Mix Division-wise loans
2% 1%
Dhaka
7% 0%
2% Chattogram
Interest Paid 0%
Rajshahi
Operating Expenses 0%
Sylhet
16% 18%
Provision
Khulna
Tax
Rangpur
77% Barisal
17% 60%
Mymensingh
Area-Wise Loans
6%
94%
Rural Area Urban Area
269
Graphical
Presentation
Market Price Per Share Price Earning Ratio
19.40 17.60 18.75 22.05 15.65 4.67 5.27 7.06 17.42 6.66
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Earnings per Share Total Assets
4.18 3.35 2.66 1.11 2.35 236,608 260,718 291,798 339,288 381,576
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Loans and Advances Deposits
147,071 168,878 191,866 234,317 267,672 189,473 210,431 229,973 269,828 298,335
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
270
a bank with vision
Import Business Operating Income
155,691 151,813 171,532 215,380 242,295 11,617 11,604 12,852 13,933 14,962
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Operating Profit Profit Before Tax
8,290 8,034 8,503 9,062 9,783 6,761 5,517 5,291 4,182 4,669
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Dividend Shareholders Equity
15% 15% 20% 15% 10% 24,543 27,207 26,524 25,824 28,117
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
271
Return of Equity Return on Assets
16.51% 11.86% 9.06% 4.46% 9.17% 1.67% 1.23% 0.88% 0.37% 0.69%
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Non Performing Loans Investment

BDT in million
3.64% 4.25% 4.89% 5.99% 5.87% 56,379 58,829 61,732 62,911 65,610
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
272
a bank with vision
Export Business Operating Expense
112,138 126,424 146,606 167,563 190,403 3,327 3,570 4,349 4,871 5,179
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Total Provision Profit After Tax
1,529 2,517 3,213 4,880 5,114 3,837 3,069 2,435 1,169 2,473
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
273
Ownership
Composition – 2018
Number of
Name of the Category % to total Shares
Shares
Directors and Sponsors 341,999,786 32.44
Financial Institutions & Investor A/C Holders 376,787,388 35.73
General Public 335,705,528 31.83
TOTAL 1,054,492,702 100.00
32.44%
Directors and Sponsors
31.83% Financial Institutions &

Investor A/C Holders
General Public
35.73%
Shares held by
Directors in 2018
Sl. No. Name of the Directors Designation Shares
1 Mr. Alamgir Kabir, FCA Chairman 23,688,872
2 Mrs. Duluma Ahmed Vice Chairperson 21,945,153
3 Mr. M.A. Kashem Director 23,353,119
4 Mr. Azim Uddin Ahmed Director 29,314,345
5 Mrs. Jusna Ara Kashem Director 21,090,453
6 Mr. Md. Akikur Rahman Director 21,410,290
7 Mrs. Rehana Rahman Director 21,670,766
8 Mrs. Sirat Monira Director 138,629
9 Mr. Syed Sajedul Karim Independent Director -
10 Dr. Quazi Mesbahuddin Ahmed Independent Director -
11 Mr. M. Kamal Hossain Managing Director -
Total Shares : - 162,611,627
274
a bank with vision
Market Price
Information
DSE CSE Total
Months Month Month Total Month Month Total Volume in
High Low Volume High Low Volume DSE & CSE
Jan-18 22.50 20.20 16,471,764 23.30 20.30 5,821,179 22,292,943
Feb-18 21.10 19.10 10,726,466 20.90 19.20 685,773 11,412,239
Mar-18 19.70 17.70 6,761,251 19.60 17.70 297,880 7,059,131
Apr-18 19.40 17.80 12,390,204 19.50 18.00 367,957 12,758,161
May-18 18.40 14.40 10,757,282 18.40 14.50 511,377 11,268,659
Jun-18 17.10 14.70 12,616,692 17.10 14.70 333,630 12,950,322
Jul-18 16.80 13.30 17,161,353 16.40 13.40 2,879,688 20,041,041
Aug-18 17.00 14.70 19,483,616 17.10 14.50 839,175 20,322,791
Sep-18 16.40 14.50 7,768,554 16.50 14.30 335,488 8,104,042
Oct-18 15.70 14.50 8,220,177 15.60 14.50 416,074 8,636,251
Nov-18 15.10 14.70 6,653,556 15.10 14.60 265,702 6,919,258
Dec-18 15.10 14.70 6,870,921 15.80 14.10 197,130 7,068,051
Month-wise High Low Share Price in Dhaka Stock Exchange Limited (DSE)
25
20
15
High
10
Low
0
8
8
8
18
18
18
18
18
-1
-1
-1
-1
-1
-1
1
b-
r-
g-
p-
ct
ov
c
n
ar
ay
l
Ju
De
Ap
Au
O
Ja
Ju
Fe
Se
N
M
Month-wise High Low Share Price in Chittagong Stock Exchange Limited (CSE)
25
20
15
High
10
Low
0
8
18
8
18
18
18
18
-1
-1
1
-1
-1
l-1
c-
n-
b-
r-
n-
g-
p-
ct
ov
ar
ay
Ju
De
Ap
Au
O
Ja
Ju
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Se
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275
Financial
Calendar 2018
Business policy and Planning Conference held and Annual Budget January 06, 2018
discussed in participation of all Heads of Branches of the Bank January 07, 2018
Audited Consolidated Financial Statements for the year 2017
28 April, 2018
finalized and signed
Publication of Financial Statements for the year 2017 in two news
May 07, 2018
papers
23rd Annual General Meeting held June 30, 2018
Dividend for 2017 for Disbursed July 4, 2018
Interim Financial Statements

For the 1st quarter ended March 31, 2018 (unaudited) published in
May 15, 2018
two widely circulated news papers
For the 2nd quarter ended June 30, 2018 (unaudited) published in
July 31, 2018
two widely circulated news papers
For the 3rd quarter ended September 30, 2018 (unaudited)
October 31, 2018
published in two widely circulated news papers
Financial Calendar 2019
Audited Financial Statements for the year 2018 finalized and signed April 30, 2019
24th Annual General Meeting will be held June 23, 2019
Final Dividend for the year 2018 proposed to be paid July 4, 2019
Interim Financial Statements

For the 1st quarter ended March 31, 2019 (unaudited) approved by
May 11, 2019
the Board of Directors
For the 2nd quarter ended June 30, 2019 (unaudited) approved by the
July 28, 2019
Board of Directors (Proposed)
For the 3rd quarter ended September 30, 2019 (unaudited) approved
October 28 2019
by the Board of Directors (Proposed)
276
a bank with vision
Stakeholder
Engagement Process
Our relationship-activity with Stakeholders:
The following table discusses various aspects of stakeholders, their engagement process and our responses:
Our Methodologies used for
Mode of Engagement Frequency of Engagement Their Priorities
Stakeholders Feedback
Customer Feedback Survey Monthly Innovative products Prescribed Form.
Branches/ATM/Retail Banking and Frequently and services Suggestion/Complaint Box kept in
Mobile Banking At times Service Quality branches.
Information in Brochure As and when required Competitive Pricing Enhanced monitoring and due
Customers Newspaper and Electronic Media As and when required Flexibility in offerings diligence
advertisements Continuous No hidden Cost Vibrant ALCO Team to decide on
Corporate website Frequently Timely disposal pricing
Call Centre (7X24) Any time E-Banking: (Internet Banking, SMS
Customer education and awareness Banking, Mobile Banking.
Complaint Box
Annual Report Annually Results of operation Concerns of existing and
Annual General Meeting Annually Business ethics prospective shareholders are
Extra-Ordinary General Meetings As and when required Sustainable Growth addressed
Corporate Disclosures As and when required Assets Quality Periodical dialogue
Shareholders Price Sensitive Information As and when required Corporate Social Financial Risk Management
Interim Financial Statements Quarterly Responsibility Process.
Risk Management Culture
Timely loan/ investment recovery
drives
Managers’ Conference, Workshops, Annually, Half-Yearly & as Staff Welfare Salary packages revised and
Seminars. when felt necessary Measures adjusted considering industry
Cross Functioning Training Program As and when required Remuneration linked scenario.
Internet Portal Continuous with performance Comprehensive Training and
Website As and when necessitated Whistle blowing other development program.
Employees Awareness about news / Daily process Health and safety standards are
developments in the business Periodically Training and maintained including, Health Care
sector workshop program. Centre and Gym in Corporate
Team building through Incentive program Office.
development of cross-cutting Festival Benefit and Incentive
working groups Bonus
On-site surveillance by Bangladesh As and when felt Proper compliance Ensuring strict compliance with all
Bank necessary with laws and regulatory requirements
Off-site supervision As and when required Regulations. Focus on Compliance Culture in
Directives and Circulars As and when required Timely payment of all the Bank
Regulators Filing of Returns and Statements Within deadlines regulatory dues. Time consciousness
Meetings As and when required Timely reporting
Timely hoding
of meeting and
implementation of
decisions.
Adherence to proper procurement As and when needed Transparency Rigorous observance of Bank’s
Business regulations while maintaining a Regularly Timely payment of procurement policy
Associates good business relationship with the their bills. Strict observance of Bank’s ethical
service providers. principles
Regular interaction on issues for
mutual benefit
Invest in Environment-Friendly Continuous Financial Inclusion Charitable ventures
Projects Annually Micro/SME Financing Contribution to education,
Awards to entrepreneurs for Ongoing and annually Green Banking health, disaster managements,
outstanding performance in As and when required Sustainable environmental protection
sustainable development and As and when felt operations Financial Inclusion through
protection of environment. necessary Transparency Mobile Banking and I-Banking
Green School/ Student Scholarship As and when decided Return to the society Operations
Environment
Program CSR Green School
and Society
Donation to Govt. Fund/ Individual Scholarship Program
on regular basis to promote citizens’ CSR Activities
welfare
Sponsoring efforts for protection of
environment
Other CSR Activities
277
Memories of
23rd Annual General Meeting
278
a bank with vision
279
280
a bank with vision
281
282
a bank with vision
283
284
SEBL Outlook
Products and Services 286-288
Central Monitoring System - Round the Clock 289
Call Center 24 X7X365 290
Media Highlights 291-293
Caring for the Employees (Health and Safety) 294
Career Development Program 295
Contribution to National Exchequer 296
Empowering Women 297
Environment - Responsive Bank 298
Southeast Bank Green School 299-301
Financial Inclusion: Mobile Banking Services – Telecash 302
Connecting Customers 303
Service Excellence in Action 304
Bank's Network: List of Branches and ATMs 305-319
Worldwide Correspondents Network 320-335
Products and Services
Mudaraba Savings Account

Al-Wadiah Current Deposit Account
Mudaraba Short Notice Deposit
Mudaraba Monthly Savings Scheme
Mudaraba Monthly Income Scheme
Mudaraba Pension Savings Scheme
ISLAMIC
BANKING Mudaraba Double Benefit Scheme
DEPOSIT Mudaraba Super Double Benefit Scheme
PRODUCTS Mudaraba Multimillionaire Gold Deposit Scheme (MGDS)
Mudaraba Wage Earners Pension Saving Scheme
Mudaraba Millionaire Deposit Scheme
Mudaraba Term Deposit Receipt
Savings Account (SB)

Current Deposit Account (CD)
Short Notice Deposit (SND)
Fixed Deposit Receipt (FDR)
Monthly Savings Scheme (MSS)
Monthly Income Scheme (MIS)
Pension Savings Scheme (PSS)
Double Benefit Scheme (DBS)
Super Double Benefit Scheme (SDBS)
Millionaire Deposit scheme (MDS)
CONVENTIONAL Multimillionaire Gold Deposit Scheme (MGDS)
BANKING DEPOSIT Wage Earners Pension Savings Scheme (WEPSS)
PRODUCTS
Anonya™ Savings Account
Bichokkhon™ Savings Account
ESTEEM™ (Priority Banking Service)
School Banking
Taroka™
Nokkhotro™
Royal Savings “Savings Account”
Savings Fast “Savings Account”
Student File
Locker Service
Senior Citizen Scheme
Passport Endorsement SEBL Home Loan
Individual Remittance SEBL Personal Loan
VALUE RETAIL
ADDED (Inward and Outward) BANKING
SEBL Car Loan
SERVICES SERVICES
Internet Banking
Service
Call Centre (7X24)
Mobile Banking
Services (Tele Cash)
286
a bank with vision
Foreign Currency Deposit Account of Non-residents

Export-Import services to Type-A industrial units of Export Processing Zones
(EPZ) and Economic Zone (EZ).
SERVICES
Financing Usance Payable At Sight (UPAS) Documentary Credit
PROVIDED BY Short Term Foreign Currency Loan to ADs for purchase of Export Bills in
OFF-SHORE
BANKING
Foreign Currency
UNIT Foreign Currency Term Loan to eligible resident industrial units.
Southeast Credit Card

Southeast Virtual Card Southeast Shopan
Southeast Travel Card Southeast Shikhor
Southeast Hajj Card Southeast Shuprova
CARD Southeast Prepaid LOAN Southeast Shopnil
SERVICES Card /INSTA Prepaid PRODUCTS
Card Southeast Agri. Loan
Southeast Express
Card
Southeast Personalized
Debit Card
Southeast My Remit
Card
Student Debit Card
Money Market Products

Call Money
Term Money
Re-purchase Agreement (Repo)
Reverse Repo
Foreign Exchange Swap
Fixed Income Products
Treasury Bond to Inter-Bank
TREASURY
PRODUCTS Treasury Bond to Individual Investors
Treasury Bond to Corporate Investors
Subordinated Bond
Foreign Exchange Products
Spot in Major Currency Pairs
Forward Contract
Placement in USD
287
Documentary Credit:
a. Advising Export Documentary Credit
b. Transferring Export Documentary Credit
c. Opening Back- to-Back Documentary Credit (Local & Foreign)
Foreign Documentary Bills Collection:
a. Documents collection Against Payment (D/P)
b. Documents collection Against Acceptance (D/A)
Pre-shipment Finance: Packing Credit
Post-shipment Finance:
a. Foreign Documentary Bills Purchase (FDBP)
EXPORT
SERVICES b. Purchase/Discounting Export Bills (Local)
c. Export Development Fund (EDF) from Bangladesh Bank
d. Cash Incentive from Bangladesh Bank
FOREIGN CURRENCY (FC) ACCOUNT SERVICES:
a. Resident Foreign Currency Account (RFCD)
b. Non-Resident Foreign Currency Account (NFCD)
c. Non-Resident Taka Account (NRTA)
d. Exporter’s Retention Quota (ERQ) Account
Documentary Credit:
a. Opening Import Documentary Credit (Local and Foreign)
b. Arranging Add Confirmation through Foreign Correspondent Banks
c. Arranging Discounting through Foreign Correspondent Banks
Post Import Finance:
a. Loan Trust Receipt (LTR)
b. Time Loan
IMPORT
SERVICES c. Term Loan
Documentary Collection services:
a. Documents Collections against Payment (D/P)
b. Documents Collections against Acceptance (D/A)
Issuing Shipping Guarantee
288
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Central Monitoring
System - Round the Clock
Central Monitoring System (CMS), a unique initiative of Southeast Bank
Limited has been introduced to ensure the physical safety & security system
and also supervision of service quality of its Branches across the country. CMS
is manned 24X7 for ensuring continuous monitoring of all branch activities. It
is to be noted that CMS of the Bank was installed ahead of Bangladesh Bank
directives making it mandatory for all the Banks.
Activities of the Central Monitoring System (CMS) are following:
To facilitate virtual branch visit for the Branch Supervisors and Bank Management.
To serve periodical reports to the management as per their requirement regarding safety & security and
Service Quality of the branches.
To ensure Service Quality.
To assist investigation agencies.
To build customer confidence and organizational image.
289
Call Center
24 X 7 X 365
Southeast Bank Call Center has been providing sustainable quality services to
its valuable customers via phone, email & live chat round the clock. Contact No
of Call Center for local caller is 16206 and overseas caller is 09613116206. Now
it has become the most popular service wing for Bank’s valuable customers
to meet their day to day banking needs. Increasing trend of customer call
also reflects the acceptability of call centre. Call Center received around 0.36
million calls in the year 2018 which is 137% higher than the number of calls
in 2017. Customers may email us at client.care@southeastbank.com.bd to
avail round the clock service at his/her convenient time. We have extended
the range of valuable services from our Call Centre such as Card activation,
Card/PIN Replacement Request, E-commerce/Foreign part enable request,
EMI Conversion Request, MRP redemption, Card cheque book activation &
requisition. Live Chat service has also been introduced by our Call Centre for
the first time among the banks in Bangladesh.
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a bank with vision
Media
Highlights
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a bank with vision
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Caring for the Employees

(Health and Safety)
Southeast Bank is committed to providing and maintaining a safe and healthy
environment for employees. The Bank believes that healthy employees are
more efficient. The Bank has a modern Central Monitoring System (CMS),
equipped with Internet Protocol (IP) based CCTV solution for video recording
system of live TV footage of all Branches at Head Office to protect the premises,
assets, employees etc. through real time visual surveillance round the clock.
The Bank is dedicated to maintaining the working place in a safe manner. In
a bid to protect the life of the employees, clients, borrowers as well as assets,
the Bank has fire extinguishers in its all Branches. The Bank has set up auto
fire detector in its Head Office premises.
Smoking is injurious to health. With a view to ensuring around with ease. The Bank is maintaining its
sound health and safety of the employees, clients, equipment, devices and systems in an efficient
borrowers and visitors, all the premises of the Bank
manner to ensure the health, safety and welfare
have been declared smoking free zone. The Bank
has emergency exit in its all outlets with a view to of the employees in the workplace. All outlets of
ensuring safe exit if needed in critical situation. All the Bank have sufficient width and headroom to
outlets of the Bank are fully air-conditioned so that allow its employees to move safely with ease. It has
the employees of the Bank can discharge their duties
established “Southeast Bank Health Care Center” at
in a comfortable environment. Sufficient lighting
has been ensured so that employees can work Head Office to provide health advice and First Aid
comfortably and move around safely. Automatic treatment for both the male and female employees
emergency lighting, powered by independent of the Bank. In addition to the First Aid treatment,
sources are available in all Branches of the Bank.
Health Care Center of the Bank was adorned with
Work stations and workrooms of the employees a state-of-the-art fitness centre which is used
have enough free space to allow them to move separately by both male and female employees.
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a bank with vision
Career Development
Program
Southeast Bank always considers its employees as the most valuable asset
and recognizes the need for professional excellence. The Training Institute of
the Bank, since its inception, has been providing effective training to Bank’s
human resources for developing their Skills, Knowledge and Abilities (SKAs) to
achieve the cherished dream of the Bank as a premier banking institution in
Bangladesh and contribute significantly to the national economic development
during their career. To accomplish this goal, the Institute designs training
calendar considering regulatory compliance requirements and new banking
innovations and also through training need assessment (TNA).
On the basis of annual training calendar-2018, the Anti-Money Laundering (AML) compliance issues
Institute imparted training on both banking theories along with 01 (One) outreach training program at
& operational areas and soft skills to enable the Rajshahi. In total 2366 officials of the Bank took
employees achieve a leadership role. During the
part in these training programs covering theoretical
year, 91 (Ninety one) training courses/workshops/
and operational aspects of Banking. The Training
round table discussions including 04 (Four)
Foundation courses for newly recruited officials Institute successfully completed annual training
were held in the Training Institute. In addition the program 2018 and devoted 3521 man-days of
Institute organized 13 (Thirteen) workshops on training during the year.
295
Contribution to
National Exchequer
Southeast Bank Limited being one of the leading financial institutions,
contributes on time to the national exchequer in the form of taxes, VAT,
excise duties etc.
Southeast Bank contributed a sum of BDT 5,771.73 million to national exchequer. The Bank’s contributions
to the National Exchequer for the last five (5) years are depicted below:
Year BDT in million

2017 5,771.73
2016 5,665.45
2015 4,416.10
2014 5,278.45
2013 5,461.27
Southeast Bank’s contributions to National Exchequer for fiscal 2017-2018 in corporate tax, withholding tax,
excise duty VAT etc. are shown:
Contribution to National Exchequer (2017-2018)
3,500.00
3,000.00
2,500.00
2,000.00
1,500.00
1,000.00
500.00
-
Corporate Tax Withholding Tax Excise Duty VAT
Amount in Million 2,239.49 2,861.91 338.12 332.20
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a bank with vision
Empowering
Women
Women empowerment is an important component of socio-economic
development of Bangladesh. The government and many other agencies
are undertaking measures to further improve the situation through various
policies focused on social reforms and generating employment opportunities.
One of the important factors that would lead to to build a secure financial future for themselves
women empowerment in Bangladesh is their and their households. The Bank works to reach the
financial independence. Women need to be unbanked women who still need access to basic
empowered economically. This will make women financial services. To spur interest of women in
self-reliant and give them the freedom of choice. availing banking services, the bank has two Ladies
This will enable them to benefit from the different Branches solely for women in two prime locations
options available at their free will. Once a woman
in Dhaka City. The Bank intends to increase women
becomes financially independent and can exercise
participation in the broader economy of the country.
her choices, she can also help her mother, sister,
The Bank has a separate dedicated product named
daughter, and other women in the society to
become empowered. This will elevate their position “Southeast Shuprova” for women entrepreneurs.
in the society and will bring in equality. With this product, the Bank provides loan to the
women entrepreneurs for creating new employment
We, at Southeast Bank has been empowering opportunities. The Bank has also a dedicated
women in the country by providing them financial savings product for woman named “Ananya” which
services through all of our Branches that allow them offers attractive returns to this account holder.
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Environment -
Responsive Bank
In 2018 Bank introduced a new Environmental and Social Risk Management
Guideline. The guideline introduces a new Environmental and Social Due
Diligence Checklist for assessing environmental and social risk of our clients.
The Guideline also provides mitigation of environmental challenges.
A Sustainable Finance Unit comprising 6 members, headed by Head of Credit Risk Management has
been constituted. A Sustainable Finance Committee comprising Heads of Divisions has been formed and
Board’s Risk Management Committee now oversees our Environmental Activities.
Southeast Bank Limited this year got a nod for USD 100 million for utilizing in Climate Mitigation Programs
from Economic Relations Division, Ministry of Finance, and GOB which is working as National Designated
Authority (NDA) of UNFCCRs’ Green Climate Fund (GCF). IDCOL is acting as our National Implementation
Entity (NIE).
Bank is properly utilizing $20.00 million from another Climate Fund named GCPF.
Bank is a beneficiary of all Environment Protection oriented re-financing facilities from Bangladesh Bank.
Bank has Circulars for In-house Green Banking practices.
Bank is going to arrange 3rd edition of SEBL-FE-PRI Green Award shortly."
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a bank with vision
Southeast Bank
Green School
Southeast Bank Green School is a noble venture of Southeast Bank Limited.
It started its journey in 2013. The aim of the school is to provide quality
education to be English Medium students at an affordable lower cost. The
school also arranges extra- curricular activities for students.
299
School Curriculum annual sports, annual picnic, science fair, field trip,
math visit (mathematics competition), graduation
The school is based on Edexcel British Curriculum. ceremony, class party and several competitions in
The school offers classes from pre-play (starts with singing, dancing, debate, drama, recitation, art, etc.
age 2.5 years old) to 10th grade (O’ level). At present, We have installed a secured play zone with different
the school has 31 dedicated teachers. They serve types of toys and playing materials in the ground
under the supervision of the competent authority. floor of the school compound for recreation and
both mental and physical growth of the students.
Extra Academic Activity
Our school has already implemented many plans Our participation in celebration of
and projects. We offer enough extra- curricular events
activities for the students to ignite their inner zeal
and longing for learning. Our teachers and students We integrate our students in the celebration of
do not confine themselves within the boundary of national occasions and traditional events. We
academic activities only. They also travel beyond and come out with specially designed programs on the
involve themselves in extra- curricular activities like occasions of National Mourning day, International
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a bank with vision
Mother Language day, Independence Day, Victory succeeded in drawing keen interest among the
Day, Pohela Baishak etc. dwellers of the area. We look forward with much
energy and optimism to the upcoming academic
Technology-Based Education sessions. It will herald further development and
innovation both in academic and infrastructural
The school is equipped with all modern equipments areas. Based on the success already achieved, we
and facilities. To facilitate learning of our students, are confident that Southeast Bank Green School will
we have a science laboratory and a computer develop further and emerge as an ideal temple of
laboratory. We encourage our students to elevate learning within a very short period of time.
their thoughts independently and comfortably in
Social Club along with the classroom activities
Looking forward
We have completed a very successful year in 2018.

With its on-going performance, the school has
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Financial Inclusion: Mobile Banking

Services – TeleCash
The Bank is providing Mobile Financial Services (MFS)
to its customers under the brand name of TeleCash.
TeleCash is providing Utility Bills (i.e. DESCO, DPDC,
Dhaka WASA, BGDCL, KGDCL, Rajshahi WASA,
Chapainawabganj Pouro Water Bills and Pabna
Cable Vision) and Tuition Fees Collection Services
other than traditional Cash-in, Cash-out and Fund
Transfer services. TeleCash service is available in
around 10,000 agent points at 278 Thana out of
595. the supervision of Palli Karma Sahayak Foundation
(PKSF). TeleCash has initiated a project to facilitate
TeleCash has recently launched cash collection the customers to recharge their prepaid smart
service in favor of corporate clients by using its utility (especially DESCO and DPDC) meters. It has
distribution channel network. PRAN Group and also taken a development task for integration with
Meghna Life Insurance Company Limited are the Core Banking System (CBS) of the Bank to link
now availing the service. National Life Insurance between mWallet account and general banking
Company Limited and International Beverages account of the customers.
Private Limited (Coca Cola) are in the pipeline
for availing the service. It has already started a TeleCash is working with the objective to introduce
pilot project for micro-credit disbursement and innovative product/service in the market as well as
repayment through Mobile Financial Service (MFS) to achieve customer satisfaction by ensuring instant
in favor of Micro Finance Institutions (MFI) under and secured transaction.
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a bank with vision
Connecting
Customers
Southeast Bank Limited has adopted the means Royal Savings:
to go beyond traditional banking and connect Royal Savings is an interest bearing and value
customers at a greater extent by providing added transactional account for Retail Customers
diversified products and services. The bank has designed with a wide range of benefits linked with
been successful in bringing this concept to life the deposit balance of the account. Customer can
through leveraging innovative ideas and product transact through the Royal Savings account with
offerings that empowered the institution to reach Cash Currency (BDT only), Cheque, Debit Card or
more customers in a cost-effective way. Payment Orders etc. This account can also be used
for receiving Foreign Remittance.
Expanding branches throughout the country is
definitely an effective way to enhance the customer Savings Fast:
base of the bank. However, the bank has given
emphasis to provide a greater variation in the Savings Fast is an interest bearing transactional
portfolio of its products to make it more enticing to account for Retail Customers designed with a wide
the customers. SEBL has developed two innovative range of benefits linked with the deposit balance
of the account. Customers can earn interest from
savings products namely “Royal Savings” and
this account. Customer can transact through the
“Savings Fast” during 2018. It will continue to conduct
Savings Fast account with Cash Currency (BDT
suitable market research to add new products and
only), Cheque, Debit Card or Payment Orders etc.
services with innovative features to attract more
This account can also be used for receiving Foreign
deposit customer.
Remittance.
303
Service Excellence
in Action
Service Excellence is one of the core values of Southeast Bank Limited. The
Bank focuses on providing fast and high quality customer service with state
of the art technology. Various methods have been adopted such as, 24X7
Call Center, Central Monitoring System (CMS), Web Chat Service to provide
customer service in the most hassle-free way. Short code 16206 is now used
round the clock 24X7 to address telephonically the business needs and queries
of the clients. Through CCTV, all the activities of the branches are monitored by
Head Office Central Monitoring System. Recently, bank introduced customer
service through Web Chat. It enables live interaction between the client and
bank’s customer service executives to meet clients’ banking queries.
We resolve customer complaints fairly, consistently Branch Supervisors at Head Office work relentlessly
and promptly. Every branch has a dedicated to ensure service excellence. Supervisors periodically
“Customer Service and Compliant Management visit the branches to monitor various performance
Desk” for dispute resolution. Customers can lodge areas including quality of customer service of the
complaints in person or through other available branches. In the Managers’ Conferences, different
means such as letter, telephone, facsimile and aspects of branches are elaborately reviewed and
email. Compliant Lodgement Forms are available at necessary steps are taken for further improvement
all our branches. We deal quickly with complaints of the service quality of the bank. As part of off-
received from the customers. We seek ideas and site supervision, the supervisors can monitor their
suggestions of the customers on how we can serve respective branches’ activities through Central
them better. The customers can give their valuable Monitoring System (CMS)-(a state of art technology)
feedback through Service Quality Forms available at which has been placed at the Bank’s Head Office.
all branches under sealed envelope. The branches According to BRPD Circular No.07 dated July 05,
send the sealed envelopes containing Service 2015, Southeast Bank is the pioneer among peer
Quality feedback received from the clients to the banks, to set-up this technological solution in order
Head Office for evaluation of customer opinion. The to become compliant and disciplined.
opinion/feedback of the customers are scrutinized
and widely discussed in the monthly Management
Committee meeting and necessary steps are taken
for improvement of customer service.
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a bank with vision
Bank’s Network
List of Branches and ATMs
02
12
03
09
66
01 34
08
BRANCHES
S
DHAKA DIVISION (66) RAJSHAHI DIVISION (09)
CHATTOGRAM DIVISION (34) RANGPUR DIVISION (02)
SYLHET DIVISION (12) BARISAL DIVISION (01)
KHULNA DIVISION (08) MYMENSINGH DIVISION (03)
305
DHAKA DIVISION (66)
Principal Branch Imamganj Branch Bangshal Branch

1, Dilkusha Commercial Area, Bhuiyan Market 14/3, North South Road, Dhaka
Dhaka-1000 163/2, Mitford Road, Dhaka Tel: 7121248, 7121251, 9567163,
Tel: 9563101, 9550081 Tel: 7314801, 7316423, 7318567, 7176116, 7176117
Fax: 88-02-9551575 7316644 Fax: 88-02-9567164
Fax: 88-02-7314801
Gulshan Branch Dhanmondi Branch Uttara Branch
House # 82 CES (F) 1, Gulshan “Navana Newbury Place” House # 1, Road # 11, Sector # 1
Avenue, Dhaka 4/1/A, Sobhanbag, Dhaka Uttara, Dhaka-1230
Tel: 9883491, 98834 01-5, Tel: 8122474, 9123183, 9123518, Tel: 8922538, 8923680, 8916538
9883492 9123167 Fax: 88-02-8923781
Fax: 88-02-9883495 Fax: 88-02-9111427
Kawran Bazar Branch New Eskaton Branch New Elephant Road Branch
Jamuna Bhaban (1st Floor), 2, Chowdhury Centre Kazi Bhaban
Kawran Bazar C/A 23/Ka, New Eskaton Road, (1st 39, New Elephant Road (1st and
Dhaka-1215 Floor), P.S. : Ramna 2nd Floor)
Tel: 9136112, 8189737, 9139276, Dhaka-1000 Dhanmondi, Dhaka-1205
8189738-40 Tel: 9360953, 9340001, 9330176, Tel: 9674588, 9674327, 9674324-5
Fax: 88-02-9136510 9340796 Fax: 88-02-9674326
Fax: 88-02-9362177
Agargaon Branch Banani Branch Motijheel Branch (Islamic
Plot # E-4/B (1st Floor) Plot No.71, Block-B, Kemal Ataturk Banking)
Agargaon Administrative Area, Avenue 125, Motijheel C/A (1st Floor)
Sher-e-Bangla Nagar Banani, Dhaka Dhaka-1000
Mohammadpur, Dhaka-1207 Tel: 9860363, 8861697, 8859518, Tel: 9567286, 9567202, 9567303,
Tel: 58151717, 9132747, 9134247, 8859987, 8861629 9567262
58150498, 58153934 Fax: 88-02-9841960 Fax: 9567701
Fax: 9132704
Aganagar Branch (Rural) Corporate Branch Shyamoli Branch
“Mahboob Plaza” (1st & 2nd Floor) Eunoos Trade Centre (Ground ASA Tower (2nd Floor)
Aganagar, Keraniganj, Dhaka Floor) Holding #23/3 & 23/14, Bir Uttam
Tel: 7772516, 7761133 52-53, Dilkusha C/A, Dhaka-1000 A.N.M. Nuruzzaman Sarak
Fax: 7761155 Tel: 9567764, 9551444, 9554447, Shyamoli, Mohammadpur
9564878 Dhaka-1207
Fax: 9571424 Tel: 8141821, 58157150, 9128988,
98157155
Fax: 48110799
Joypara Branch (Rural) Kakrail Branch Madhabdi Branch (Rural)
Begum Aysha Shopping Complex Toma Tower (1st & 2nd Floor) Khatian # 28 (1st Floor), Madhabdi
(1st Floor) 77/1, VIP Road, Kakrail, Dhaka Pauroshava
Holding # 222, Joypara Pourasava Tel: 9356115, 9356116, 9340852-3 PS & Dist.: Narshingdi
Thana: Dohar, Dist.: Dhaka Fax: 9355990 Tel: 9446127, 9446125
Tel: 06223-56040, 56041, 56042 Fax: 9446126
Fax: 06223-56040 Ext.-111
Ashulia Branch (Rural) Narayanganj Branch Savar Branch (Rural)
Helim Shopping Complex Holing # 26-29, S. M Maleh Road Plot # A-109, Bazar Road (1st
(Opposite Fantasy Kingdom Main Tanbazar, Narayanganj Floor)
Gate) Tel: 7648201, 7648202, 7648203, Pourasava & P.S. : Savar, Dhaka
Ashulia, Dhaka 7634331 Tel: 7743691, 7743692, 7743693,
Tel: 7788440, 7788420 Fax: 7648200 7743694
Fax: 7788441 Fax: 7743690
Mouchak Branch Konabari Branch (Rural) Tongi Branch (Rural)
Karnaphuli Point (1st Floor) Plot # A-147/148, BSCIC I/R 8/B, Anarkoli Road (1st Floor)
70, New Circular Road, Malibagh, Union: Konabari, P.S.: Joydebpur Tongi Bazar, Gazipur
Dhaka Dist.: Gazipur Tel: 9816647, 9816648, 9816650-
Tel: 8333347, 8333676, 8333678, Tel: 9298840, 9298836, 9298838, 51
8333679 9298839 Fax: 9816649
Fax: 8333348 Fax: 9298837
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a bank with vision
Bashundhara Branch Sat Mashjid Road Branch Mohammadpur Branch

Plot # 142, Block # B ADC Empire Plaza (1st & 2nd Axis Delvista (1st Floor), 7/1,
Bashundhara R/A, Baridhara, Floor) Aorongozeb Road
Dhaka-1212 Plot # 183 (Old) 91 (New), Road # Block-A, Mohammadpur Housing
Tel: 8401031, 8401032, 8401034- 22 (Old) 12/A (New) Estate
5 Sat Mashjid Road, Dhanmondi, Mohammadpur, Dhaka
Fax: 8401033 Dhaka Tel: 8129649, 8129604, 9101254,
Tel: 8191167, 8191168, 8191170, 58150961
8191171 Fax: 9119583
Fax: 8191169
Pragati Sarani Branch Mawna SME/Krishi Branch Tangail SME/Krishi Branch
Plot # Ga-25/5/1, Shahjadpur Holding # 1497, Mawna Bazar “Noor Plaza”, Holding # 263,
Pragati Sarani, Gulshan, Dhaka Road Tangail Main Road
Tel: 8899238-9, 8899610, (1st Floor), Sreepur Pauroshava Ward # 13, Pauroshava & Thana:
8899240 Ward # 8, Thana : Sreepur, Dist.: Tangail
Fax: 8899208 Gazipur Dist.: Tangail
Tel: 068-2552900, 068-2552901 Tel: 0921-51336
Fax: 068-2552902 Fax: 0921-62798
Madanpur SME/Krishi Branch Narsingdi SME/Krishi Branch Rokeya Sarani Branch
Ekata Samabay Super Market (2nd “Islam Plaza” (1st Floor) “Kusholi Bhaban”
Floor) Holding # 1, Maddha Kanda Para Holding # 238/1, West Kafrul,
Mouza: Chanpur, Union: Sadar Road, Ward # 4, Narsingdi Rokeya Sarani, Mirpur, Ward # 16
Madanpur Pauroshava Dhaka City Corporation, Thana:
Thana: Bandar, Dist.: Narayanganj Thana: Narsingdi Sadar, Dist.: Sher-e-Bangla Nagar
Tel: 7648083, 7648081 Narsingdi Dhaka
Fax: 7648082 Tel: 9452082, 9452080 Tel: 9103249, 9103251, 9103246,
Fax: 9452081 9103247
Fax: 9103248
Islampur Branch Hemayetpur Branch (Rural) Munshigonj Branch
“Royal Tower” Hemayetpur Super Market (2nd “B. M Complex” (1st Floor)
Holding #4, Ahsan Ullah Road, Floor) House # 55, Jubillee Road, Ward
Ward # 37, Dhaka South City Mouza: Kulashur, Union: Tetuljora #3
Corporation Thana: Savar, Dist.: Dhaka Munshigonj Pauroshava, Thana:
Thana: Kotwali, Dhaka Tel: 7747914, 7747464, 7747915, Munshigonj Sadar
Tel: 57394570, 57396174, 7747916 Dist.: Munshigonj
57394538, 57394589 Fax: 7747465 Tel: 7620594, 7620591, 7620592,
Fax: 57396175 7620593
Fax: 7620595
Joydebpur Branch (Rural) Donia Branch (Rural) Rupnagar Branch
Holding # 235, Block # K, Shib Bari “Chowdhury Complex” (1st Floor), “Rangan”, Plot # 14, Road # 11
More Village: Noyapara, Mouza: Dhania Ward # 7, Rupnagar Residential Area
B.I.D.C Road, Ward # 3, Gazipur Union: Dhania, Thana: Demra, Mirpur Housing Estate, Dhaka City
Pauroshova Dist.: Dhaka Corporation, Mirpur, Dhaka
Thana: Joydebpur, Dist.: Gazipur Tel: 7547955, 7548055 Tel: 8031924, 8051981
Tel: 9252852, 9252851 Fax: 7548122 Fax: 8051965
Fax: 9252850
Kamrangirchar Branch Bhulta Branch (Rural) Dakhin Khan Branch (Rural)
(Rural) Bhulta Bus Stand, Union: “Faisal Mansion”
“Elham Square”, Rony Market Road Golakandail Shah Kabir Mazar Road
Mouza: Char Kamrangirchar Thana: Rupgonj, Dist.: Narayanganj Village: Moshair, Mouza: Uttar Khan
Union: Sultangonj, Thana: Mob.: 01755-637195 Union: Dakhin Khan Adarsha
Kamrangirchar Union Parishad
Dist.: Dhaka Thana: Dakhin Khan, Dist.: Dhaka
Tel: 55160210, 55160209 Tel: 8953290, 8953292
Fax: 55160211 Fax: 8953299
Gopaldi Branch (Rural) Ati Bazar Branch (Rural) Hasnabad Branch (Rural)
Gopaldi Bazar, Union: Sadasadi Mouza: Ati, Union: Sakta “Roky Tower”, Hasnabad, Mouza:
Thana: Araihazar, Dist.: Thana: Keranigonj, Dist.: Dhaka Ekuria
Narayanganj Tel: 55103281, 55103282 Union: Subatta, Thana: Keranigonj,
Mob.: 01755-637194 Fax: 55103280 Dist.: Dhaka
Mob: 01730-781277
307
Mohakhali Branch Banasree Branch (Rural) Bandura Branch (Rural)

“Bay’s” (1st Floor) Twin Tower, House # 13, Block # Puraton Bandura Bazar
50, Mohakhali C/A, Dhaka C, Main Road Mouza: Puraton Bandura, Union:
Tel: 9882523, 9885712, 9882527, Banasree Project, East Rampura, Bandura
9885710 Dhaka Thana: Nawabgonj, Dist.: Dhaka
Fax: 9885711 Mob: 01730-781279 Mob: 01730-781278
Sarulia Branch Kapasia Branch (Rural) Mirpur Branch
Samsul Haque Nilu Shopping Akter Market Simpletree
Complex Kapasia Main Road Plot # 01, Road # 08, Block-C,
Mouza: Sarulia, Union: Sarulia Thana: Kapasia, Dist.: Gazipur Section-06
Thana: Demra, Dist.: Dhaka Mob.: 01766-673597 Mirpur Housing Estate, Pallabi,
Mob.: 01730-792169 Dhaka
Mob.: 01766-673595
Ashulia Bazar Branch (Rural) Balivadra Branch (Rural) Kalibari Branch (Rural)
Shahid Sonamia Plaza, Bhandari Latif Super Market, Sobur Market, Duptara Adorsha
Bangabandhu Road Balivadra Bazar Bazar
Ashulia Bazar, Mouza: Boro Mouza: Ganakbari, Union: Sattabhandi Bhuiyan Para
Ashulia Damsona (Kalibari)
Union & Thana: Ashulia, Dist.: Thana: Ashulia, Dist.: Dhaka Mouza & Union: Duptara, Thana:
Dhaka Mob.: 01755-630359 Araihazar
Mob.: 01755-630358 Dist.: Narayanganj
Mob.: 01939-900570
Rajbari Branch Dhanmondi Ladies Branch Moghbazar Ladies Branch
“Saleha Akkas Tower” “Rupayan Khan Plaza” “Hall Mars”, Holding # 66 (Old)
Holding # 237, Binodpur (College Plot # 500/A (Old) / 18 (New), Outer Circular Road
Road) Road # 7, Dhanmondi R/A 05 (New) Shahid Sangbadik Salina
Ward # 08, Thana: Rajbari Sadar Dhaka Parvin Sarak
Pauroshava: Rajbari, Dist.: Rajbari Mob.: 01934-448906 Boro Mogbazar, Dhaka
Mob.: 01934-448903 Mob.: 01934-448905
Kazi Nazrul Islam Avenue Ghior Branch (Rural) Balla Branch (Rural)
Branch Mouza+Union: Ghior, Upazila : Mouza & Union: Balla
“Rupayan Trade Centre” Ghior P.S.: Kalihati, Dist.: Tangail
114, Kazi Nazrul Islam Avenue, Dist.: Manikganj Mob.: 01705-403798
Dhaka Mob.: 01705-403799
Mob.: 01755-624864
Malibagh Branch Singair Branch (Rural) R. K. Mission Road Branch
ABN Tower, 45, Siddheswari Singair New Market Nir Chhayabithi
Circular Road Holding No.: 2/2, Kansha Road 53, 53/1, R. K. Mission Road,
Dhaka Ward No.: 04, Pourasava + P.S.: Dhaka
Mob.: 01787-694948 Singair Mob.: 01934-448919
Dist.: Manikganj
Mob.: 01934-448918
Monipur Bazar Branch (Rural) Faridpur Branch Le Meridien Branch
“Isha Chowdhury Tower” “Nilima Tower” - “Khaleque Tower” “Finance Square”
Pirozali Road, Monipur Bazar Holding # 80-81, Mujib Sarak, Le Meridien Hotel cum Office
Union: Bhawal Gor, P.S.: Gazipur Ward # 04 Complex
Sadar Upazila: Faridpur Sadar, Commercial Block, Holding # 79/A
Dist.: Gazipur Paurashava: Faridpur, Dist.: North Nikunja, Khilkhet
Mob.: 01934-448920 Faridpur Dhaka
Mob.: 01708-481079 Mob.: 01700-706530
CHATTOGRAM DIVISION (34)

Agrabad Branch Khatunganj Branch Jubilee Road Branch
Faruk Mahal 410/411, Khatunganj, Chattogram 96, Jubilee Road, Chattogram
93, Agrabad Commercial Area, Tel: 031-2863594, 031-621934, Tel: 031-635265, 031-611712-5,
Chattogram 031-620166-7, 031-620516 031-635245, 031-635246
Tel: 031-721152, 031-713097-8, Fax: 88-031-62 05 17 Fax: 88-031-611716
031-7130 94-5, 031-721151-3
Fax: 88-031-713096
308
a bank with vision
Halishahar Branch CDA Avenue Branch (Islamic Pahartali Branch

House # 3, Block # G Banking) Hajrat Taiyabia Complex
Port Connecting Road, Halishahar Ali Villa, 1640/1861 (New), CDA Holding # 801 (New), D.T Road,
Housing Estate Avenue Alongkar Mour
Halishahar, Chattogram Asian Highway, East Nasirabad Abdul Alir Hat, Pahartali,
Tel: 031-727949, 031-716826, Panchliash, Chattogram Chattogram
031-2526183, 031-2526184 Tel: 031-652150, 031-654875, Tel: 031-2771001, 031-2771002-4
Fax: 88-031-727949 031-2552385-6 Fax: 031-2771005
Fax: 031-2552387
Cox's Bazar Branch (Islamic Chhagalnaiya Branch (Islamic Feni Branch
Banking) Banking) Surma Sadan (1st and 2nd Floor),
Asha Shopping Complex Mir Shopping Complex (1st Floor) 176, 177 and 178 Trunk Road
430-431, Bazar Ghata (1st Floor), Chhagalnaiya Bazar Thana - Feni Sadar, Dist. - Feni
Cox's Bazar P.S.: Chhagalnaiya, Feni Tel: 0331-63004, 62884, 61362,
Tel: 0341-63406, 0341-51053 Tel: 03322-78302, 78432 61852
Fax: 0341-64742 Fax: 03322-78302 Ext.-111 Fax: 0331-62884 Ext.-102
Bashurhat Branch (Rural) Chowmuhani Branch (Rural) Momin Road Branch
Ayesha Motaleb New Market Hossain Market Equity Central, 42-43, Momin
Holding # 428, Main Road Holding # 276-284, D. B Road Road
Ward # 5, Bashurhat Pauroshava Chowmuhani Pauroshava, Thana: Chattogram City Corporation
Companyganj, Noakhali Begumganj P.S.: Kotwali, Dist.: Chattogram
Tel: 03223-56415, 56461 Dist.: Noakhali Tel: 031-2857345, 031-2857346,
Fax: 03223-56430 Tel: 0321-53534, 0321-53535, 031-2857347, 031-2857348
0321-54018 Fax: 031-2857349
Fax: 0321-54018
Madambibir Hat Branch Comilla Branch Lohagara SME/Krishi Branch
(Rural) 359/328, Jhawtala Mostafa City Center, Mouza:
Madambibir Hat, Union-Bhatiary 1st Kandir Paar, Thana: Kotwali, Amirabad
P.S.: Sitakunda, Dist.: Chattogram Comilla Thana:- Lohagara, Union:
Tel: 031-2781001, 031-2781003, Tel: 081-64278, 081-64280, 081- Amirabad
031-2781004, 031-2781005 64279, 081-61322 Dist.: Chattogram
Fax: 031-2781002 Fax: 081-61321 Tel: 0303-456623, 01713-065986
(Mobile)
Fax: 0303-456624
Brahmanbaria SME/Krishi Hathazari SME/Krishi Branch Shebarhat SME/Krishi Branch
Branch S. A Shopping Complex, Hathazari Shebarhat Bazar, Mouza –
Shikder Plaza, Holding # 1001 Bus Stand Razarampur
Dr. Faridul Huda Road, Ward # 4 Rangamati Road, Plot # 14238, Feni Chowmuhani Sarak (1st Floor)
Pauroshava & Thana: Khatian # 2517 Thana – Shenbag, District -
Brahmanbaria Mouza: Fatika, Union: Fatehpur Noakhali
Dist.: Brahmanbaria Thana: - Hathazari Tel: 01713-065972
Tel: 0581-58202 Dist.: Chattogram
Fax: 0581-58201 Tel: 031-2601855
Fax: 031-2601856
Sonagazi SME/Krishi Branch Oxygen More Branch Chowdhury Hat SME/Krishi
Holding # 431, Ward #4, Holding No.405, Kulgaon Branch
Pauroshava & Thana: Sonagazi Chattogram City Corporation “Halim Mansion”, (1st Floor)
Dist.: Feni Oxygen Mour, Ward # 2 Chowdhury Hat, Mouza:
Tel: 03325-76386, 76377 Thana : Bayezid Bostami Chikandandi
Fax: 03325-76386 Dist.: Chattogram Union: Fateyabad, Thana:
Tel: 031-2584018, 2584019, Hathazari, Chattogram
2584020, 2584059 Tel: 031-2584007, 031-2584006
Fax: 031-2584017 Fax: 031-2584005
309
Potherhat Branch (Rural) Fatikchari Branch (Rural) Kotwali Branch

“Khaiz Ahmed Shopping Centre” “Mir Jahanara Complex” (1st Floor) “Equity Anitri” (1st Floor)
(1st Floor) College Road (Bibir Hat), Khatian Holding # 32, Shahid Sohrawardy
Mouza: Noapara, P.O: Gujra # 4989 Road
Noapara Union: Dhurang, Thana: Fatikchari, Ward # 33, Chattogram City
Union: 13 No. Noapara, Thana: Chattogram Corporation
Raujan Tel: 030-2256317, 030-2256316 Thana: Kotwali, Dist.: Chattogram
Dist.: Chattogram Fax: 030-2256315 Tel: 031-632750, 632751, 632752
Tel: 031-2573214, 031-2573216, Fax: 031-632753
031-2573217
Fax: 031-2573215
Companigonj Branch (Rural) Chakaria Branch (Rural) Miabazar Branch (Rural)
“Saudia Manjil” (1st & 2nd Floor) “Society Jame Mosque Complex” Haji Siraj Mansion
R.S Khatian # 395, Companigonj Mouza: Chiringa, Chakaria Mouza : Ashrabpur, Union : 2 No.
Mouza: North Tirish, Union: 15 No. Pauroshova Ujirpur
Nobipur (West) Thana: Chakaria, Dist.: Cox’s Bazar Thana : Chauddagram, Dist.:
Nabinagar Road, Thana: Tel: 03422-56161, 03422-56162 Comilla
Muradnagar, Dist.: Comilla Fax: 03422-56163 Mob.: 01766-665140
Tel: 08026-59011, 59004
Fax: 08026-59017
Haidergonj Branch (Rural) Teknaf Branch (Rural) Gunabati Branch (Rural)
Gazi Super Market Alo Shopping Complex, PC-177, K Mouza: Gunabati, Union: 12 No.
Haidergonj Bazar, Mouza : Char K Para, Main Road Gunabati
Ababil Ward No.: 03, Pourashova: Teknaf, P.S.: Chouddogram, Dist.: Comilla
Union : Char Ababil, Upazila : Thana: Teknaf Mob.: 01709-633280
Raypur Dist.: Cox’s Bazar
Dist.: Laxmipur Mob.: 01934-448900
Mob.: 01766-673599
Silonia Bazar Branch (Rural) Parshuram Branch (Rural) Baraiyarhat Branch
“Razzak Market”, Feni-Maizdi Road “Mazumder Market” “Alam Tower” (1st Floor), Holding #
Union: Joylaskar, P.S.: Holding # 161, Main Road 139 (1)/139, Mashjid Road
Dagonbhuiyan Ward # 05, Pourasava: Ward # 04, Pourashova:
Dist.: Feni Parshuram Baraiyarhat, Upazila: Mirsharai
Mob.: 01708-481074 P.S.: Parshuram , Dist.: Feni Dist.: Chattogram
Mob.: 01708-481073 Mob. : 01700-706528
Abutorab Branch (Rural)
“Kazi Market”, Mouza: Modho
Moghadiya
Union: 11 No. Moghadiya, Upazila:
Mirsharai
Dist.: Chattogram
Mob.: 01700-706529
SYLHET DIVISION (12)

Chouhatta Branch
Laldighirpaar Branch Moulvibazar Branch
Manru Shopping City
Mubarak Tower Jarif Tower
Plot # 4953/4943 (1st Floor)
1794/1788, New Market, Sylhet 199/2, M. Saifur Rahman Road,
Chouhatta Mirboxtola Road
Tel: 0821-710955, 0821-715382, Moulvibazar
Chouhatta, Sylhet
0821-710218 Tel: 0861-53727-9
Tel: 0821-720276, 0821-720276
Fax: 88-0821-710102 Fax: 88-0861-53730
Fax: 88-0821-720276
Shahjalal Uposhahar Branch Bandar Bazar Branch (Islamic Kulaura Branch

Plot # 07, Block # D, Main Road, Banking) Aziz Rowshon Shopping Centre
Shahjalal Uposhahar Karimullah Market (1st Floor) and Garden City
Sylhet Bandar Bazar, Sylhet Holding No. 334, Ward No. 3,
Tel: 0821-713057, 0821-713052, Tel: 0821-810322, 812246, Pourasava: Kulaura
0821-713062, 0821-811655 4116495, 4011350, 0821-721243 Thana: Kulaura, Dist.: Moulvi Bazar
Fax: 88-0821-711820 Fax: 0821-2831455 Tel: 08624-56208
Fax: 08624-56208
310
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Hetimgonj Branch (Rural) Pathantula Branch Tazpur SME/Krishi Branch

Khoyruganj Jame Masjid Market Haque Mansion of Modina Market Tazpur Bazar, Mouza: Boraya,
Complex (1st Floor) 704, Pathantula, Sylhet City Union: 8 No Tazpur
Union: Fulbari, Hetimgonj Corporation Thana: Balagonj, Dist.: Sylhet
Chowrasta Thana: Jalalabad, Dist.: Sylhet Tel: 08242-56191
Thana: Golapgonj, Dist.: Sylhet Tel: 0821-728745, 0821-724300 Fax: 08242-56191
Tel: 0821-840374, 840373 Fax: 0821-724300
Fax: 0821-840372
Biswanath SME/Krishi Branch Beanibazar SME/Krishi Charkhai Branch (Rural)
“Haji Monir Uddin Market” Natun Branch Anisha Complex
Bazar, Biswanath “Panchakhanda Haragabinda High Mouza : Kamar Gram, Union : 2
Mouza - Mashala, Union/ School Market” No. Charkhai
Pourashova: Biswanath 834, Beanibazar-Sylhet Road, P.S.: Thana : Beanibazar, Dist.: Sylhet
Thana: Biswanath, Dist.: Sylhet Beanibazar Mob.: 01766-665141
Tel: 08224-56205 Dist.: Sylhet
Tel: 08223-56164
Fax: 08223-56165
KHULNA DIVISION (8)

Khulna Branch Jessore SME/Krishi Branch Satkhira SME/Krishi Branch
Haji Hanif Complex Holding # 11, R. N. Road, Ward # 2 Holding # 5896, Polash Pole, (1st
12 & 13, Khan Jahan Ali Road, Pauroshava: Jessore, Kotwali, Floor)
Khulna Jessore Shahid Nazmul Sarak (Satkhira Old
Tel: 041-730606, 041-7314 06, Tel: 0421-67683 Bus Stand)
041-731306, 041-731606 Fax: 0421-68094 Ward # 08, Satkhira Paurashava
Fax: 88-041-731506 Thana: Satkhira, Dist.: Satkhira
Tel: 0471- 63568, 62508
Fax: 0471- 63569
Sir Iqbal Road Branch Rupdia Bazar Branch (Rural) Dumuria Branch (Rural)
“Noor Jahan Plaza” "Bhowmik Super Market", Mouza: R. R. Plaza, Mouza: Araji Sajiyara
155, Sir Iqbal Road, Khulna Zirat Union: 11 No. Dumuria
Tel: 041-721056, 731848, 724471 Union: 12 No. Norendrapur P.S.: Dumuria, Dist.: Khulna
Fax: 041-722852 P.S.: Jessore Sadar, Dist.: Jessore Mob.: 01705-403796
Mob.: 01709-633282
Kushtia Branch Chuadanga Branch
Aneek Tower, 295, Nowab “Brothers Tower”, Holding No.: 686-06, Thana Road
Sirajuddoula Road Ward No.: 03, Pourasava: Chuadanga
Ward # 03, Pauroshava : Kushtia P.S.: Chuadanga Sadar, Dist.: Chuadanga
P.S.: Kushtia Sadar, Dist.: Kushtia Mob.: 01934-448917
Mob.: 071-71845, 071-71895
RAJSHAHI DIVISION (9)

Bogra Branch Rajshahi Branch Naogaon Branch
Bhandari Manjil (2nd Floor) Plot # 447, Mangol Bhaban (2nd “Kazi Habibur Rahman Market”
776-777 Barogola, Bogra Floor) 301, Old Hospital Road (Bridge
Tel: 051-68083, 68084, 68085, Alupatti Mour, P.O.: Ghoramara Mour)
68086 P.S: Boalia, Dist.: Rajshahi Pauroshava: Naogaon, Thana:
Fax: 051-51939 Tel: 0721-812203, 0721-812204, Naogaon Sadar
0721-812205, 0721-812206 Dist.: Naogaon
Fax: 0721-812207 Tel: 0741-63227, 0741-63286,
0741-63397, 0741-61274
Fax: 0741-61831
Website : www.southeastbank.
com.bd
311
Chapainawabganj Branch Sirajganj Branch Baneshwar Branch (Rural)

“Sarker Tower”, Holding # 59, 60, 61 Basak Plaza Al-Haj Amzad Hossain Market
Kalitala 1st Lane (Jhilim Road), Ward 947-948, Shaheed Suharawardy Mouza : Shibpur, Union :
# 02 Road, Sirajganj Baneshwar
Chapai Nawabganj Pourashova Mob.: 01766-665142 Thana : Puthia, Dist.: Rajshahi
Thana: Sadar, Dist.: Chapainawabganj Website : www.southeastbank. Mob.: 01766-673596
Tel: 0781-51717, 0781-51718 com.bd Website : www.southeastbank.
Fax: 0781-51716 com.bd
Website : www.southeastbank.com.bd
Pabna Branch Ishwardi Branch Natore Branch
“Khairul Tower” “Adib Rana Plaza” “Lily Plaza”, Holding No.: 838,
116, Mawlana Mohammed Ali Road 994/930 &1017, Station Road Kanaikhali
(Narikel Bagan Road), Ward # 3 Ward # 07, Thana : Ishwardi Ward No.: 04, Pourasava: Natore
(Shibrampur) Pauroshava : Ishwardi, Dist.: P.S.: Natore Sadar, Dist.: Natore
Pabna Pauroshava, Thana: Pabna Pabna Mob.: 01712-803701
Sadar, Dist.: Pabna Mob.: 01787-678778 Website : www.southeastbank.
Mob.: 0731-65027, 65032, 65059, com.bd
65073
Fax: 0731-65089
RANGPUR DIVISION (2)

Rangpur Branch Dinajpur Branch
Canopus, Holding # 39/1, 39/7 Holding # 808/837, Ganeshtola
Dhap Jail Road, Rangpur City Corporation Jail Road, Dinajpur Municipal Corporation
Thana: Kotwali, Dist.: Rangpur Ward # 3, Thana: Kotwali, Dist.: Dinajpur
Tel: 0521-64672, 64673, 64778, 64779 Tel: 0531-52025, 0531-52026
Fax: 0521-64780 Fax: 0531-52024
Website : www.southeastbank.com.bd Website : www.southeastbank.com.bd
BARISAL DIVISION (1)

Barisal Branch
54 Sadar Road (1st Floor)
Kotwali, Barisal
Tel: 0431-2176601, 0431-2176602, 0431-2176603-04
Fax: 0431-64056
MYMENSINGH DIVISION (3)

Mymensingh Branch Sherpur Branch Muktagacha Branch
“Minar Complex”, Holding # 09 Muslim Market Rabeya Momtaz Tower (1st Floor),
Mukti Joddha Sarani (Choto Bazar) Holding # 166, Shahid Bulbul Holding # 574
Ward # 08, Pauroshava : Sarak Mymensingh-Tangail Main Road
Mymensing Munshi Bazar, Ward No.: 02, (Old Bus Stand)
Thana: Kotwali Sadar, Dist.: Pourasava: Sherpur Ward No.: 08, Pourashova:
Mymensing Thana: Sherpur Sadar, Dist.: Muktagacha
Mob.: 01934-448904 Sherpur Upazila: Muktagacha, Dist.:
Website : www.southeastbank. Mob.: 01705-403797 Mymensingh
com.bd Website : www.southeastbank. Mob.: 01700-702113
com.bd Website : www.southeastbank.
com.bd
Off-Shore Banking Unit, DEPZ Off-Shore Banking Unit, CEPZ
Zone Servicing Building-1 Zone Service Complex (1st Floor)
Room # 77 (3rd Floor), Dhaka EPZ, East Wing North Chattogram EPZ
Ganakbari, Savar Chattogram
Dhaka Tel: 031-740780
Tel: 7788628-9 Fax: 031-740779
Website : www.southeastbank.
com.bd
312
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ATM Network
03
07
06
14
90
04 33
16
ATMS
DHAKA DIVISION (90) RAJSHAHI DIVISION (14)
CHATTOGRAM DIVISION (33) RANGPUR DIVISION (03)
SYLHET DIVISION (07) BARISAL DIVISION (04)
KHULNA DIVISION (16) MYMENSINGH DIVISION (06)
313
Dhaka Division (90)

Corporate Uttara -ATM-1- Sector 1 Gulshan ATM-1
Eunoos Trade Centre (Ground House #1, Road #11, Sector #1, House #82 CES (F), 1, Gulshan
Floor) Uttara Avenue
Plot #52-53, Dilkusha C/A Dhaka-1230 Dhaka -1212
Dhaka-1000
Pragati Sarani ATM-1 Banani ATM-1 Dhonia ATM-1
Plot No. GA - 25/5/1, Shahjadpur Plot #71, Block #B, Kamal Ataturk Chowdhury Complex” (1st & 2nd
Pragoti Sarani Avenue Floor)
Gulshan, Dist.: Dhaka Banani, Dhaka 440-441, Noyapara, Donia,
Jatrabari
Dhaka - 1236
Mouchak ATM-1 Madobdi Savar
Karnaphuli Point (1st Floor) Khatian # 28 (1st Floor), Mouza: Plot # A -109, Bazar Road (1st
70 New Circular Road Par Kashipur Floor)
Malibagh, Dhaka Madhabdi Pauroshava, Thana: Pauroshava & P.S.: Savar
Narsingdi Dhaka
Dist: Narsingdi
Basundhara ATM-1 Hemayetpur Ashulia
Plot#142, Block# B, Bashundhara Hemayetpur Super Market (2nd Helim Shopping Complex,
R/A Floor), Mouza: Kulashur (Opposite Fantasy Kingdom)
Baridhara, Dhaka -1212 Union: Tetuljora, Thana: Savar Ashulia, Dhaka
District: Dhaka
Joypara Konabari Basundhara ATM-2, NSU
Begum Aysha Shopping Complex Plot # A-147/148, BSCIC I/R, North South University Campus
(1st Floor) Union: Konabari ATM Booth
Holding # 222, Joyapara P.S. - Joydebpur, Dist - Gazipur Plot 15, Block B, Bashundhara
Pourasava Dhaka-1229
Thana - Dohar, District - Dhaka
Narayanganj Uttara - ATM-2, Sector 14 Principal-ATM-2, ACS Textile
53/2 S.M. Maleh Road, Tanbazar, Plot No: 20, Road No: 12, Sector ACS Textiles (Bangladesh) Limited
Narayangonj No: 14 Tetlabo, Word No: 03, P.O: Parabo
Uttara Residential Model Town P.S: Rupgonj, Narayanganj
Dhaka-1230
Elephant Road-ATM-1, Concord Kawran Bazar-ATM-2, Bhulta ATM-1
Arcadia Green Road - Comfort Hospital Bhulta Bus Stand, Union:
Concord Arcadia Shopping Mall, 167, Green Road (Besides Comfort Golakandail, Thana: Rupgonj
Plot No. 1 & 2 Hospital) Dist.: Narayanganj
Road No: 04, Dhanmondi
Residential Area, Dhaka
Dokkhinkhan Joydebpur New Eskaton ATM-1
Faisal Mansion, Shah Kabir Mazar Taj Tower,82, Shibbari more Chowdhury Center, 23/Ka, New
Road Joydebpur, Gazipur Eskaton Road (1st Floor)
P.S # Dakshin Khan, Dhaka P.S.: Ramna, Dhaka - 1000
Mohammadpur Principal ATM-1 Aganagar
Axis Delvista (1st .Floor), Holding 1, Dilkusha C/A, Annex Building Din Complex, Kodomtoli Circle,
No:7/1, Block-A Hotel Purbani International Keranigonj
Aurongajeb Road, Mohmmadpur Motijheel Thana, Dhaka Dhaka
Housing Estate
Mohammadpur
Principal-ATM-03, Pirjongi Elephant Road, ATM-2, Donia ATM-2, Dolaipar
Shah Mazar Hatirpool 169/A/2 Dolaipar, Dhaka-1204
Pirjongi Shah Mazar, Motijheel 149/1, Elephant Road (Presently-
Coloney Jamee Masjid Complex Dr. Kudrat -e- Khuda Road)
Market Kalabagan, Dhaka
Shop No# 08, Pirjongi Shah Mazar,
Outer Circular Road
Dhaka.
314
a bank with vision
Tangail Satmasjid Road ATM-2 New Eskaton-ATM-2, Boro

Noor Plaza, Holding # 263, Main ADC Empire Plaza, Holding No# Mogh Bazar
Road, Tangail-1900 91, Road No# 12/A Shitol Bhaban, 625, Boro
Satmasjid Road, Dhanmondi, Moghbazar
Dhaka Red Crescent Road, Ramana,
Dhaka
Kapasia New Eskaton-ATM-3 Hasnabad
Akhter Market, Kapasia Main Farr Ceramics, Gazipur Rocky Tower, Village / Area:
Road, Village: Kapasia “Farr Ceramics”, Noulapara Hasnabad, Ekuria
Mouza: Banar Hawla, Union: (Bhabanipur Union : Vaoalergor Union Name: Subatta, Keranigonj,
Kapasia Gazipur Sadar Thana, Gazipur Dhaka
Kapasia Thana, District: Dhaka
Kamrangirchar Rupnagar Principal Br.-ATM-4, Business
At the ground floor of Rony “Rangan”, Plot # 14, Road # faculty, DU Campus
Market Bhaban, Holding No. 11,Ward # 7, Rupnagar Residential At the ground floor of
648-649, Rasulpur, Market Road, Area,Mirpur Housing Estate, Administrative Building, Faculty
Ward No. 56, Dhaka South City Dhaka City Corporation,Thana: of Business Studies, University
Corporation, Kamrangirchar Mirpur, Dist.: Dhaka of Dhaka, Shahabag Thana,
Thana, Dhaka Dhaka South City Corporation,
Dhaka-1000
Bhulta-ATM-2, Panchrukhi Ashulia Bazar Kalibari
Bazar, Araihazar “Shahid Sonamia Plaza”, Ashulia “Sabur Market”, Dhuptara Adarsha
MP Tower Building, Panchrukhi Bazar, Bangobondu Road, Dag Bazar, Kalibari, Village: Shapta
Bazar, Araihazar, Dag No : RS- No: 839, JL No: 115, Khatian No: Bandi Bhuyian Para, Mouza:
1862,1863, SA-986,987, Khatian 101, Ashulia Union, Ashulia Thana, Dhuptara, Union: Dhuptara
No: RS-3036, Mouza Name: Dhaka Union Parishad, Thana: Araihazar,
Panchrukhi, Union : Panchrukhi, District: Narayangonj
Araihazar Thana, District :
Narayangonj
Balivhadra Mirpur Tongi
“Vhandari Latif Super Market”, "Simpletree” Plot # 01, Road # “Kazi Market”, Holding No:
Village: Balivhadra Bazar, Mouza: 8, Section # 6, Mirpur, Ward # 6, 8/B, Anarkoli Road, Ward No:
Ganakbari, Union: Swanirvar Dhaka City Corporation, Thana: 57, Gazipur City Corporation,
Damsona Union Parishad, Thana: Pallabi, District: Dhaka under the Thana:Tongi, Gazipur.
Ashulia, District: Dhaka supervision of Mirpur Branch,
Dhaka
Rajbari Malibugh Joydebpur, ATM-2
“Saleh Akkas Tower”, Holding # “Fakhr-E-Nur ABN Tower”, “OK Tower”, Holding No:
237, Binodpur (College Road), Holding # 45, Siddeswari Circular F-214/10, Hakkani Housing
Ward # 08, Rajbari Porusova, Road, Ward No: 19, Ramna Thana, Society, Rajbari-Jourpukur
Rajbari Sadar Thana, Dist.-Rajbari. Dhaka South City Corporation, Road, Ward No: 28, Gazipur City
Dhaka. Corporation, Joydebpur Thana,
District: Gazipur
Balla Ghior Dhanmondi ATM-2, Navana
Balla, R.S Dag # 586, 587 R.S Ghior, S.A Dag # 450, S.A Khatian New Bury,
Khatian # 1270, 1271, Mouza # 161, R.S Dag # 783, R.S Khatian "Navana Newbury Place",
:Balla, Union:Balla, Thana: Kalihati, # 159, C.S Dag # 450, C.S Khatian Road/Holding No.4/1/A, Area:
District: Tangail # 161, Union: Ghior, Thana: Ghior, Subhanbagh, Mirpur Road,
District: Manikganj Ward No.17, Kalabagan Thana,
Dhanmondi-1213, Dhaka South
City Corporation, Dhaka
Latif Bawany Jute Mills ATM Wari Imamganj
Latif Bawany Jute Mills Ltd. 4/2 Joykali Mondir, Wari, Dhaka Bhuiyan Market, 163/2, Metford
Demra, Dhaka. Road, Dhaka
315
Agargaon Singair Madanpur

248-1/G, West Agargaon, Sher-e- “Singair New Market”, Holding Ekata Samabay Super Market,
Bangla Nagar, Dhaka # 02/02, Kansha Road, Singair C.S. Dag # 83, Khatian # 165,
Bazar, Singair Pauroshava, Ward S.A. Dag # 56, Mouza: Chandpur,
# 04, Upazilla/Thana: Singair, Union: Madanpur, Thana:
District: Manikganj Bandar, District: Narayanganj
Segun Bagicha Ati Bazar Branch premises Bangshal Branch ATM Booth
Segun Bagicha Concord Mouza: Ati, Union: Sakta Thana: House #5, Road # Bangshal
Apartment, 5, Segun Bagicha, Keranigonj, Dist.: Dhaka Lane, P.S # Kotowali,
Ramna, Dhaka Dhaka-1100
Uttara Sector# 13 WAPDA Road Rampura Khilgaon, Taltala
House# 50, Gareeb-e-Nawaz 56, West Rampura, WAPDA House# 566/C, Khilgaon, Taltala,
Road, Sector# 13, Uttara, Dhaka Road, Dhaka Dhaka
APBN Uttara ATM SPBN Mohammadpur Shyamoli Branch ATM
Armed Police Battalion (APBn) House No: 19/20, Road No.: ASA Tower of 23/3 and
compound, sector-2, Uttara, 2, Shahjalal Housing Limited, 23/14, Bir Uttam A.N.M
Dhaka. Shahid Buddijibi Shetu Sharok, Nuruzzaman Sarak, Shyamoli,
Mohammadpur, Dhaka Mohammadpur, Dhaka-1207,
Bangladesh
Adabor ATM Faridpur Branch ATM
“Baitul Aman Housing Society” “Nilima Tower” & “Khaleque Tower” (Block # A, Shop No. # 03),
House-533, Road-11, Adabor, Holding # 80-81, Niltuli, Road Name: Mujib Sarak, Ward No: 04,
Dhaka Pauroshava: Faridpur, Thana: Faridpur Sadar, District: Faridpur.
Banasree ATM Munshigonj Branch Monipur Bazar Branch
House # 4, Block # C, Banasree, “B. M Complex”,House # “Isha Chowdhury Tower”, Village:
Dhaka 55, Jubillee Road, Ward # Monipur Bazar, Pirujali Road,
3,Munshigonj Pauroshava,Thana: Mouza: Bokran Monipur, Union:
Munshigonj, Dist.: Munshigonj Mirzapur, Thana: Gazipur Sadar,
District: Gazipur
East Monipur Ibrahimpur ATM Jatrabari ATM
Edi-Fice Center, 1281 Begum 284 Khan Mansion, Ibrahimpur, House No.- 100/1/Kha, Sahid
Rokeya Sarani, East Monipur, Dhaka Cantonment, Kafrul, Faroque Road, Jatrabari, Dhaka
Mirpur, Dhaka-1216 Dhaka-1206
Rokeya Sarani Branch ATM Kamalapur ATM Corporate Branch Inhouse
237, West Kafrul, Shere Bangla Holding No 1/2/B & 1/2/A, Eunoos Trade Centre (Ground
Nagar, Dhaka Kamalapur Bazar road, Dhaka Floor), Plot #52-53, Dilkusha C/A,
Dhaka-1000
Nikunja Branch ATM Azampur Kacha Bazar ATM Sparrow ATM
Le Meridien Hotel Cum Bismillah Shopping Complex, Sparrow Apparels Limited,
Office Complex Plot # 79/A, Shop no. 12 & 13, Shah Kabir Chandana, Laxmipura,
Commercial Block, North Majar Road, Azampur Kacha Joydevpur, Gazipur.
Nikunja, Dhaka Bazar, Dakhin Khan, Dhaka-1230
CHATTOGRAM DIVISION (33)
Halishahar Agrabad Oxygen Moor
House # 03, Block - G, Port Jahan Building, 59, Agrabad 405, Kulgao, Oxygen More,
Connecting Road, Halishahar Commercial Area, Chattogram Biozid Bostami, Chattogram
Housing Estate, Halishahar,
Chattogram
316
a bank with vision
Potherhat Jubilee Road CDA Avenue ATM 1 & 2

Khaiz Ahmed Shopping Centre” Haji Golam Rasul Market, 96 Ali Villa, 1640/1861 (New), CDA
(1st Floor) Khatian # 5820, Dag # Jubilee Road, Chattogram Avenue, Asian Highway, East
37 & 38 Village: Noapara, Mouza: Nasirabad, Thana - Panchliash,
Noapara P.O: Gujra Noapara, Dist.: Chattogram
Union: 13 No. Noapara Thana:
Raujan, District: Chattogram
Chakaria Hathazari Bashurhat
“Society Jame Mosque S. A. Shipping Complex Kabirhat Road, Basurhat Bazar
Complex”,R.S Khatian # 76, R.S Hathazari Bus Stand, Ranganati ,Basurhat Pourusava, Ps #
Dag # 154,Mouza: Chiringa, Road, Plot # 14238, Khatian Companygonj, Dist.# Noakhali
Chakaria Pauroshova,Thana: # 2517, Mouza: Fatika, Union:
Chakaria, Dist.: Cox’s Bazar Fatehpur, Thana: Hathazari, Dist:
Chattogram
Companygonj Chowdhury Hat Chowmuhani
Saudia Manjil (1st & 2nd S.N. Tower, Dadaram Sharok Tara Manjil, Holding No#
Floor),Dag # 742, R.S Khatian Road, Chowdhury Hat Bazar 72, Feni Road, Hajipur, PS#
# 395, Companigonj, Mouza: ` Begumgonj, Chowmuhani
North Tirish, Union: 15 No. Pourashava, Noakhali
Nobipur (West), Nabinagar
Road, Thana: Muradnagar,Dist.:
Comilla
Cox's Bazar ATM-1 Mia Bazar Haidergonj, Laxmipur
M&M Shopnaloy, Plot# A-12, Hazi Siraj Mansan, Dag No: Kazi Super market, Dag No-
Kolatoli, Main Road, Cox’s Bazar BS-503, Khatin No: BS-237, RS-16687,16688,16689, Khatian
Mouza: Ashrabpur, Union: 02 No No-RS-432,950,2049, Haidergonj
Ujirpur, Chowddrogram Thana, Bazar, Mouza-Char Ababil,
Comilla Union-Char Ababil, Raipir,
Laxmipur
Fatikchari Madambibir Hat Shebarhat
Mir Jahanara Complex, College Madambibir Hat Union, Jahanara & Sons Market, Village/
Road, Bibirhat, Dag No: 7622, Bhatiary, P.S.: Sitakunda, Dist. Area: Raja Rampur, Dag No:
Khatian No: 4989, JL-51, :Chattogram 3181, Khatian No: 998 JL-420,
Mouza : North Dhurung, Thana: Mouza: Raja Rampur, Union : 7
Fatikchari, Chattogram No Mohammadpur, Senbagh
Thana, Noakhali
Teknaf Chhagalniya-ATM Cox's Bazar-ATM-2
“Alo Shopping Complex’, Holding Tareque Medical Hospita Coral Reef “Coral Reef Mannan
No: P.C-177,K.K Para, Main Road, “Tareque Memorial Hospital Plaza”, Holding No: 569, Main
Teknaf Pauroshova, Ward No # Complex”, Dhaka-Chattogram Road, Bazar Ghata, Ward No:
03, Thana: Teknaf, District: Cox’s old Main Road (Banshpara), 10, Cox’s Bazar City Corporation,
Bazar Chhagalniya Thana, Feni Sadar -Cox’s Bazar Thana,
District: Cox’s Bazar.
Momin Road, Ctg Gunabati Kotwali, ctg
“Equity Central”, Holding No: 42- Gunabati Bazar”, Village: “Equity Anitri”, Holding No:
43, Momin Road, Ward No: 32, Gunabati, Union: 12 No. 32, Hossain Shahid Sarwardi
Chattogram City Corporation, Gunabati Union, Thana: Road, Kotwali, Ward No: 33,
Thana: Kotwali, Chattogram.. Choddogram, District: Comilla Chattogram City Corporation,
Kotwali Thana, Chattogram.
317
Chagalniya Branch APBN-Chattogram ATM Khatungonj Branch ATM

“Mir Shopping Complex”, 9 Armed Police battalion (APBN) Zaynab Tower, Holding # 46,
Chhagalnaiya Bazar, P.S.: Solosohor, Chattogram Road Name# Khatungonj,
Chhagalnaiya, Feni. Ward # 35, Chattogram City
Corporation, Thana # Kotwali,
District # Chattogram.
Sonagazi Branch ATM Silonia Bazar Branch ATM Feni Branch ATM
Holding # 431, Dag # 565, 03, BKB Building, Silonia Bazar, Liberty Super Market of Feni
Khatian # 433, Mouza: Char Dagonbhuiyan, Feni. Pourashava, Feni
Ganesh, Thana: Sonagazi,
District: Feni
SYLHET DIVISION (07)
Patantula -ATM Shahjalal Uposhar Moulvibazar
Ragib Rabeya, Medical College Block# D, Main Road, Shahjalal Jarip Tower, Holding No: 199/2,
and Hospital, Jalalabad Ragib- Uposhahar, Sylhet Road No: 59, Central Road
Rabeya Medical College and (Saifur Rahman Road), Ward: 04,
Hospital, Road: Sunamgonj, Moulvibazar Pourashava, Thana
Pathantula, Sylhet -3100 : Moulvibazar, Moulvibazar
Laldigirpar-ATM Chowhatta-ATM Kulaura
VIP Tower, Plot No: 3714, Kazirtula Main Road Aziz Rowshon Shopping Center
Khatian No: 1909, JL-91, VIP Mujibur Rahman Complex, & Garden City, Holding No:
Road Sylhet, Ward No: 13, Sylhet Holding No: 1469, 1470, 1471, 0334-00, Ward No: 03, Kulaura
City Corporation , Kotwali Than, 1472, Kazirtula Main Road, Ward Pourashava, Kulaura Thana,
Sylhet No: 17, Sylhet City Corporation , District: Moulvibazar
Kotwali Than, Sylhet
Pathantula Branch premises
Haque Mansion of Modina Market, Holding No. 704, Pathantula Ward No. 8, sylhet City Corporation,
Thana ; Jalalabad, Dist : Sylhet
KHULNA DIVISION (16)
Khulna Sir Iqbal Road Satkhira
Haji Hanif Complex (1st 155, Sir Iqbal Road, khulna Holding # 5896, Palash Pole
floor),12 & 13, Khan Jahan Ali (Thanar Moor) (Ground Floor), Shahid Kajal
Road,Khulna. Sarak (Satkhira Bus Stand), Ward
# 08, Satkhira Pouroshova,
Thana: Satkhira, District: Satkhira
Jessore Rupdia Dumuria
11, R.N. Road, Thana: Kotwali, Bhoumik Super Market, Rupdia "R.R. Plaza", Village: Araji Sajiara,
Dist.: Jessore Bazar, Vill: Zirat, Union: 14 no Union: 11 No. Dumuria Union,
Narendropur, Jessore Thana: Dumuria, District: Khulna.
Khalishpur Jute Mills ATM Eastern Jute Mills ATM Kushtia
Khalishpur Jute Mills Ltd. Eastern Jute Mills Ltd. Atra Aneek Tower, 295, Nowab
Khalishpur, Khulna Industrial Area, Khulna Sirajuddoula Road Ward #
03, Pauroshava : Kushtia P.S.:
Kushtia Sadar, Dist.: Kushtia
Chuadanga APBN,Khulna ATM
“Brothers Tower”, Holding # 0686-06, Thana Road, Chuadanga 3, Armed Police Battalion
Pauroshava, Ward # 03, Thana: Chuadanga Sadar, District: Chuadanga (APBN), Shiromoni, Khulna
318
a bank with vision
RAJSHAHI DIVISION (14)

Chapainawabgonj Bogura ATM-1 Naogaon
“Sarker Tower”, Holding # Mofiz Paglar Moor, Bogura Shahid Matiul Isalm Poura
59,60 & 61, Ward # 02, Kalitola Market, Naogaon Pourashava,
1st Lane (Jhilim Road), Boro Thana: Naogaon sadar, Dist.:
Indira Moor, Chapainawabganj Naogaon
Municipality, Thana:
Chapainawabganj Sadar, District:
Chapainawabganj.
Rajshahi ATM-1, Laxmipur Bogura ATM-2, Rangpur Road, Baneswar
Holding No: 634, Sher-Sha Road, Bogura “Alhaj Amjad Hossain Market”,
Laxmipur, Rajshahi 288/325, 289/326, Jamil Village: Kolahata, Mouza:
Shopping Center, Borogola, Shibpur, Union: Baneswar,
Rangpur Road, Bogura Thana: Potia, District: Rajshahi
Rajshahi-ATM-2, Uposhahar Rajshahi-ATM-3, Greater Road, Rajshahi-ATM-4, Natore Road,
New Market, Rajshahi Rajshahi Rajshahi
Uposhahar New Market, Holding Greater Road, Ward No: 13, Rokeya Bhaban, Holding No:
No: 10, Ward No: 14, Rajshahi Rajshahi City Corporation, Boalia 219, Natore Road, Ward No: 22,
City Corporation, Boalia Thana, Thana, Rajshahi Rajshahi City Corporation, Boalia
Rajshahi Thana, Rajshahi
PABNA Iswardi Sirajganj Branch premises
Khairul Tower, Maowlana Holding # 994/930 & 1017, “Basak Plaza” Holding # 947-
Mohammad Ali Road (Narikel Ishwardi Porosova, Ishwardi 948, Suhrawardi Road, P.S.:
Bagan Road), Ward No: 03 Thana, District: Pabna Sirajganj, Dist.: Sirajganj
(Shibrampur), Pabna Porosuva,
Pabna Sadar Thana, District:
Pabna
ABPN Bogura
4 Armed Police Battalion (APBN),
Nishindara, Bogura.
RANGPUR DIVISION (03)
Rangpur Dinajpur Rangpur Branch ATM (Unit # 2)
Shah Murad Complex, RK Road, Holding # 880/837, Ganesh Tola “Canopus”, Holding # 39/7, Dhap
Medical Moor, Rangpur Jail Road, Dinajpur Municipal Jail Road Mouza: Voghi, Ward #
Corporation, Ward # 3, Thana: 19, Rangpur City Corporation,
Dinajpur Sadar, Dist: Dinajpur Thana: Kotwali, District: Rangpur.
BARISAL DIVISION (04)
Barisal-ATM-1, Barisal-ATM-2, Sadar APBN Barishal ATM
Nazirerpool,Barisal Road,Barisal 10, Armed police battalion
Holding No: 1367-000, Holding No: 241, Sadar Road (APBN), Barisal
Birsreshta Captain Mohiuddin (Opposite of Barisal Zila School),
Jahangir Sarok (Nazirerpool), Ward No: 10, Barisal City
Ward No: 19, Barisal City Corporation, Kotwali Thana,
Corporation, Kotwali Thana, Barisal
Barisal
MYMENSINGH DIVISION (06)
Mymensingh APBN Muktagacha Crown Wears ATM
Minar Complex, Holding No: 09, Mymensingh Crown Wears (Pvt.) Limited,
Moktijodda Sarani (Choto Bazar), 2 Armed Police Battalion (APBN), Zamirdia, Bhaluka, Mymensingh.
Ward No: 08, Mymensingh Muktagacha, Mymensingh
Porosuva, Kotwali Sadar Thana,
District: Mymensingh
319
Worldwide Correspondents
Network
COUNTRIES NAME OF BANK CITY FLAGS
AUSTRALIA AND NEW ZEALAND BANKING GROUP LID MELBOURNE
BANK OF AMERICA, N.A. SYDNEY
BANK OF SYDNEY LTD SYDNEY
CITIBANK N.A. SYDNEY
HSBC BANK AUSTRALIA LIMITED SYDNEY
AUSTRALIA JPMORGAN CHASE BANK, N.A. SYDNEY
MIZUHO CORPORATE BANK, LTD. SYDNEY
MUFG BANK, LTD SYDNEY
NATIONAL AUSTRALIA BANK LIMITED MELBOURNE
SUMITOMO MITSUI BANKING CORPORATION SYDNEY
SUNCORP-METWAY LIMITED BRISBANE
CITIBANK INTERNATIONAL PLC VIENNA
COMMERZBANK AG VIENNA
AUSTRIA RAIFFEISENLANDESBANK NIEDEROESTERREICH-WIEN AG VIENNA
RAIFFEISENLANDESBANK LINZ
UNICREDIT BANK AUSTRIA AG VIENNA
ALUBAF ARAB INTERNATIONAL BANK B.S.C. (C) MANAMA
CITIBANK N.A. MANAMA
BAHRAIN ICICI BANK LIMITED MANAMA
UNITED BANK LIMITED MANAMA
WOORI BANK MANAMA
AB BANK LIMITED DHAKA
AGRANI BANK LIMITED DHAKA
AL-ARAFAH ISLAMI BANK LTD DHAKA
BANGLADESH BANK DHAKA
BANGLADESH COMMERCE BANK LTD. DHAKA
BANGLADESH DEVELOPMENT BANK LIMITED (BDBL) DHAKA
BANGLADESH KRISHI BANK DHAKA
BANK ALFALAH LIMITED DHAKA
BANGLADESH
BANK ASIA LTD DHAKA
BASIC BANK LIMITED DHAKA
BRAC BANK LIMITED DHAKA
CITIBANK N.A. DHAKA
CITY BANK LIMITED THE DHAKA
COMMERCIAL BANK OF CEYLON DHAKA
DHAKA BANK LIMITED DHAKA
DUTCH-BANGLA BANK LTD DHAKA
320
a bank with vision

EASTERN BANK LTD. DHAKA
EXPORT IMPORT BANK OF BANGLADESH LTD DHAKA
FIRST SECURITY ISLAMI BANK LIMITED DHAKA
HABIB BANK LIMITED DHAKA
HONGKONG AND SHANGHAI BANKING CORPORATION
DHAKA
LTD, THE
ICB ISLAMIC BANK LIMITED DHAKA
IFIC BANK LIMITED. DHAKA
ISLAMI BANK BANGLADESH LTD DHAKA
JAMUNA BANK LIMITED DHAKA
JANATA BANK LIMITED DHAKA
MEGHNA BANK LIMITED. DHAKA
MERCANTILE BANK LIMITED DHAKA
MIDLAND BANK LIMITED DHAKA
MODHUMOTI BANK LIMITED. DHAKA
MUTUAL TRUST BANK LIMITED DHAKA
NATIONAL BANK LIMITED DHAKA
NATIONAL BANK OF PAKISTAN DHAKA
NATIONAL CREDIT AND COMMERCE BANK LIMITED DHAKA
NRB BANK LIMITED DHAKA
NRB COMMERCIAL BANK LIMITED DHAKA
BANGLADESH NRB GLOBAL BANK LIMITED DHAKA
ONE BANK LIMITED. DHAKA
PRIME BANK LIMITED. DHAKA
PRIMIER BANK LIMITED. DHAKA
PUBALI BANK LIMITED. DHAKA
RUPALI BANK LTD DHAKA
SHAHJALAL BANK LIMITED. DHAKA
SHIMANTO BANK LIMITED DHAKA
SOCIAL ISLAMI BANK LTD. DHAKA
SONALI BANK LIMITED DHAKA
SOUTH BANGLA AGRICULTURE AND COMMERCE BANK
DHAKA
LTD.
SOUTHEAST BANK LIMITED DHAKA
STANDARD BANK LIMITED. DHAKA
STANDARD CHARTERED BANK DHAKA
STATE BANK OF INDIA DHAKA
THE FHARMERS BANK LIMITED DHAKA
TRUST BANK LIMITED. DHAKA
UNION BANK LIMITED DHAKA
UNITED COMMERCIAL BANK LTD. DHAKA
UTTARA BANK LIMITED. DHAKA
WOORI BANK, DHAKA DHAKA
321

BNP PARIBAS FORTIS (FORTIS BANK SA/NV) BRUSSELS
BYBLOS BANK EUROPE S.A. BRUSSELS
COMMERZBANK AG BRUSSELS
DEXIA BANK SA BRUSSELS
BELGIUM
HABIB BANK LIMITED BRUSSELS
KBC BANK NV BRUSSELS
STATE BANK OF INDIA ANTWERPEN
SUMITOMO MITSUI BANKING CORPORATION BRUSSELS
BANK OF BHUTAN PHUNTSHOLING
BHUTAN
DRUK PNB BANK LIMITED THIMPHU
BANCO BRADESCO SA SAO PAULO

BANCO SANTANDER (BRASIL) S.A. SAO PAULO
BRAZIL
BANCO VOTORANTIM S.A. SAO PAULO
DEUTSCHE BANK S.A. - BANCO ALEMAO SAO PAULO
BANK OF NOVA SCOTIA TORONTO
BANK OF MONTREAL, THE MONTREAL
HABIB CANADIAN BANK MISSISSAUGA
CANADA
HSBC BANK TORONTO
ICICI BANK CANADA TORONTO
TORONTO-DOMINION BANK TORONTO
AXIS BANK LIMITED SHANGHAI
BANK OF CHINA BEIJING
BANK OF COMMUNICATIONS SHANGHAI
BANK OF DALIAN DALIAN
BANK OF HEBEI (FORMERLY SHIJIAZHUANG CITY
SHIJIAZHUANG
COMMERCIAL BANK)
BANK OF HUZHOU CO.,LTD MIZHOU
BANK OF JIANGSU CO LTD NANJING
BANK OF JINHUA (FORMERLY JINHUA CITY COMMERCIAL
JINHUA
BANK)
BANK OF JINING CO.LTD JINING
BANK OF LIUZHOU CO.,LTD. LIUZHOU
CHINA
BANK OF NINGBO NINGBO
BANK OF RUIFENG SHAOXING
BANK OF TIANJIN CO., LTD. TIANJIN
CHANGSHU RURAL COMMERCIAL BANK CHANGSHU
CHINA CITIC BANK BEIJING
CHINA DEVELOPMENT BANK BEIJING
CHINA EVERBRIGHT BANK LTD BEIJING
CHINA MERCHANTS BANK SHENZHEN
CITIBANK (CHINA) COM., LTD SHANGHAI
COMMERZBANK AG SHANGHAI
COMMERZBANK AG TIANJIN
322
a bank with vision

COMMERZBANK AG BEIJING
DBS BANK (CHINA) LIMITED SHANGHAI
GUANGZHOU RURAL COMMERCIAL BANK CO GUANGZHOU
HANGZHOU UNITED RURAL COMMERCIAL BANK CO.LTD HANGZHOU
HSBC BANK (CHNA) COMPANY LIMITED SHANGHAI
HUA XIA BANK BEIJING
ICICI BANK LIMITED SHANGHAI
INDUSTRIAL AND COMMERCIAL BANK OF CHINA BEIJING
JIANGSU JIANGNAN RURAL COMMERCIAL BANK CO.,LTD. CHANGZHOU
JIANGSU JIANGYAN RURAL COMMERCIAL BANK CO., LTD JIANGYAN
JIANGSU JINGJIANG RURAL COMMERCIAL BANK CO., LTD JIANGSU
JIANGSU WUJIANG RURAL COMMERCIAL BANK WUJIANG
JPMORGAN CHASE BANK (CHINA) COMPANY LIMITED GUANGZHOU
JPMORGAN CHASE BANK (CHINA) COMPANY LIMITED SHANGHAI
JPMORGAN CHASE BANK (CHINA) COMPANY LIMITED TIANJIN
KBC BANK NV SHANGHAI
LINSHANG BANK CO. LTD LINYI
MIZUHO BANK (CHINA), LTD. SHANGHAI
CHINA
MUFG BANK (CHNA), LTD TIANJIN
NANXUN BANK HUZHOU
NINGBO YUYAO RURAL COOPERATIVE BANK YUYAO
POSTAL SAVINGS BANK OF CHINA BEIJING
SHINHAN BANK (CHINA) LTD BEIJING
STANDARD CHARTERED BANK (CHINA) LIMITED SHANGHAI
SUMITOMO MITSUI BANKING CORPORATION (CHINA)
SHANGHAI
LIMITED
SVENSKA HANDELSBANKEN AB SHANGHAI
SWEDBANK AB SHANGHAI
THE BANK OF NEW YORK MELLON, SHANGHAI BRANCH SHANGHAI
WELLS FARGO BANK, N.A. SHANGHAI
WOORI BANK (CHINA) LIMITED BEIJING
YINZHOU BANK NINGBO
ZHEJIANG PINGHU RURAL COMMERCIAL BANK COMPANY
PINGHU
LIMITED
ZHEJIANG RURAL CREDIT COOPERATIVE UNION HANGZHOU
ZHEJIANG TAILONG COMMERCIAL BANK TAIZHOU
ZHEJIANG ZHUJI RURAL COMMERCIAL BANK COMPANY
ZHUJI
LIMITED
CESKOSLOVENSKA OBCHODNI BANKA, A.S. PRAGUE
CITIBANK EUROPE PLC, ORGANIZACNI SLOZKA PRAGUE
CZECH REPUBLIC COMMERZBANK AG PRAGUE
RAIFFEISENBANK A.S. PRAGUE
UNICREDIT BANK CZECH REPUBLIC,A.S. PRAGUE
323

DANSKE BANK A/S COPENHAGEN
DENMARK
SYDBANK A/S AABENRAA
CITIBANK CAIRO CAIRO
EGYPT COMMERCIAL INTERNATIONAL BANK (EGYPT) S.A.E. CAIRO
MASHREQ BANK PSC CAIRO
DANSKE BANK PLC HELSINKI
FINLAND OP CORPORATE BANK PLC HELSINKI
SVENSKA HANDELSBANKEN AB HELSINKI
BANQUE PALATINE PARIS
BRED BANQUE POPULAIRE PARIS
BYBLOS BANK EUROPE S.A. PARIS
COMMERZBANK AG PARIS
CREDIT AGRICOLE CIB PARIS
CREDIT AGRICOLE SA PARIS
FRANCE
CREDIT LYONNAIS PARIS
HSBC FRANCE PARIS
INTESA SANPAOLO SPA PARIS
MUFG BANK, LTD PARIS
SUMITOMO MITSUI BANKING CORPORATION EUROPE
PARIS
LIMITED
UNION DE BANQUES ARABES.ET PARIS
FRANKFURT AM
AKBANK AG
MAIN
BREMER KREDITBANK AG BREMEN
CITIBANK EUROPE PLC FRANKFURT
COMMERZBANK AG FRANKFURT
COMMERZBANK AG BERLIN
COMMERZBANK AG DUESSELDORF
COMMERZBANK AG HAMBURG
COMMERZBANK AG FRANKFURT
DANSKE BANK HAMBURG
FRANKFURT AM
DB PRIVAT-UND FIRMENKUNDENBANK AG
GERMANY MAIN
DEUTSCHE BANK AG MANNHEIM
DEUTSCHE BANK AG MUENCHEN
DEUTSCHE BANK AG HAMBURG
DEUTSCHE BANK AG BREMEN
DEUTSCHE BANK AG WUPPERTAL
DEUTSCHE BANK AG KOELN
DEUTSCHE BANK AG DUESSELDORF
DEUTSCHE BANK AG BERLIN
DEUTSCHE BANK AG LEIPZIG
DEUTSCHE BANK AG CHEMNITZ
324
a bank with vision

FREIBURG IM
DEUTSCHE BANK AG
BREISGAU
DEUTSCHE BANK AG MAINZ
DEUTSCHE BANK AG BIELEFELD
DEUTSCHE BANK AG HANNOVER
DEUTSCHE BANK AG FRANKFURT
DEUTSCHE BANK AG ERFURT
DEUTSCHE BANK AG STUTTGART
DZ BANK AG DUESSELDORF
HSBC TRINKAUS UND BURKHARDT AG DUESSELDORF
HSBC TRINKAUS UND BURKHARTD DUESSELDORF
HSH NORDBANK AG HAMBURG
ICICI BANK UK PLC FRANKFURT
FRANKFURT AM
JPMORGAN CHASE BANK, N.A.
MAIN
GERMANY
KBC BANK NV NIEDERLASSUNG DEUTSCHLAND DUESSELDORF
LANDESBANK BADEN-WUERTTEMBERG (LBBW) STUTTGART
LANDESBANK HESSEN-THUERINGEN GIROZENTRALE FRANKFURT AM
(HELABA) MAIN
MAINZER VOLKSBANK E.G. MAINZ
MIZUHO BANK (EUROPE) N.V. DUESSELDORF
MUFG BANK, LTD DUESSELDORF
ODDO BHF AKTIENGESELLS FRANKFURT
FRANKFURT AM
SEB AB (PUBL.)
MAIN
FRANKFURT AM
SHINHAN BANK EUROPE GMBH
MAIN
SPARKASSE HERFORD, COMMERCIAL AND SAVINGS BANK HERFORD
SPARKASSE PADERBORN-DETMOLD DETMOLD
STANDARD CHARTERED BANK FRANKFURT
UNICREDIT BANK AG MUENCHEN
GUADELOUPE CREDIT AGRICOLE POINTE-A-PITRE
AB INTERNATIONAL FINANCE LTD HONGKONG
ABN AMRO BANK N.V. KOWLOON
ALLAHABAD BANK HONGKONG
AXIS BANK LIMITED HONGKONG
BANCO SANTANDER, S.A. HONG KONG
BANK OF AMERICA, N.A. HONG KONG
HONG KONG BNP PARIBAS HONG KONG
CITIBANK (HONG KONG) LIMITED HONG KONG
CITIBANK N.A. HONG KONG
COMMERZBANK AG HONG KONG
DBS BANK (HONG KONG) LIMITED HONG KONG
DEUTSCHE BANK AG HONG KONG
EBL FINANCE (HK) LIMITED HONGKONG
325

HANG SENG BANK LIMITED HONG KONG
HBZ FINANCE LTD. HONG KONG
HDFC BANK LTD HONGKONG
HONG KONG
LIMITED, THE
ICICI BANK LIMITED HONG KONG
INDUSTRIAL AND COMMERCIAL BANK OF CHINA (ASIA)
HONGKONG
LTD
INDUSTRIAL BANK OF KOREA, HONG KONG BRANCH HONGKONG
INTESA SANPAOLO SPA HONG KONG HONG KONG
JPMORGAN CHASE BANK, N.A. HONG KONG
KBC BANK NV, HONG KONG HONG KONG
MASHREQ BANK PSC HONG KONG
MIZUHO BANK, LTD HONG KONG
MUFG BANK, LTD HONG KONG
PBL FINANCE (HONG KONG) LIMITED HONGKONG
SKANDINAVISKA ENSKILDA BANKEN AB (PUBL) HONG KONG
STANDARD CHARTERED BANK (HONG KONG) LIMITED HONG KONG
SUMITOMO MITSUBI BANKING CORPORATION HONGKONG
THE BANK OF NEW YORK MELLON HONG KONG
UNICREDIT BANK AG HONG KONG
WELLS FARGO BANK, N.A. HONG KONG
WOORI BANK HONG KONG
CITIBANK EUROPE PLC BUDAPEST
HUNGARY
UNICREDIT BANK HUNGARY ZRT. BUDAPEST
AB BANK LIMITED MUMBAI
AXIS BANK LIMITED MUMBAI
BANK OF AMERICA, N.A. MUMBAI
CITIBANK N.A. MUMBAI
DBS BANK LTD MUMBAI
DEUTSCHE BANK AG MUMBAI
DOHA BANK Q.S.C MUMBAI
EMIRATES NBD BANK PJSC MUMBAI
INDIA
HDFC BANK LIMITED MUMBAI
MUMBAI
LIMITED, THE
ICICI BANK LIMITED MUMBAI
INDUSIND BANK LIMITED MUMBAI
JPMORGAN CHASE BANK, N.A. MUMBAI
KARUR VYSYA BANK LTD MUMBAI
KOTAK MAHINDRA BANK LIMITED MUMBAI
MASHREQ BANK PSC MUMBAI
326
a bank with vision

MIZUHO BANK, LTD MUMBAI
MUFG BANK, LTD NEW DELHI
PUNJAB NATIONAL BANK MUMBAI
SHINHAN BANK MUMBAI
INDIA SONALI BANK KOLKATA
STANDARD CHARTERED BANK MUMBAI
UNION BANK OF INDIA MUMBAI
UNITED BANK OF INDIA MUMBAI
YES BANK LIMITED MUMBAI
BANK ANZ INDONESIA, P.T. JAKARTA
BANK DBS INDONESIA, PT JAKARTA
BANK MEGA PT JAKARTA
BANK NEGARA INDONESIA - PT (PERSERO) JAKARTA
CITIBANK, N.A. JAKARTA
INDONESIA JPMORGAN CHASE BANK, N.A. JAKARTA
MUFG BANK, LTD JAKARTA
PT BANK HSBC INDONESIA JAKARTA
PT BANK RAKYAT INDONESIA (PERSERO), TBK JAKARTA
PT.BANK WOORI SAUDARA INDONESIA 1906 TBK JAKARTA
STANDARD CHARTERED BANK JAKARTA
CITIBANK EUROPE PLC DUBLIN
IRELAND DANSKE BANK A/S DUBLIN

WELLS FARGO BANK INTERNATIONAL UNLIMITED
DUBLIN
COMPANY
BANCA MONTE DEI PASCHI DI SIENA S.P.A. MILANO
BANCA NAZIONALE DEL LAVORO S.P.A. ROMA
BANCA POPOLARE DI SONDRIO SONDRIO
MORCIANO DI
BANCA POPOLARE VALCONCA
ROMAGNA
BANCA UBAE SPA ROMA
BANCO BPM S.P.A. VERONA
BPER BANCA S.P.A. MODENA
COMMERZBANK AG MILANO
ITALY CREDITO DI ROMAGNA SPA FORLI'
CREDITO VALTELLINESE SONDRIO
ICCREA BANCA - ISTITUTO CENTRALE DEL CREDITO
ROMA
COOPERATIVO
INTESA SANPAOLO SPA MILANO
MIZUHO BANK, LTD MILANO
MUFG BANK, LTD MILANO
UBI BANCA S.P.A. BERGAMO
UNICREDIT S.P.A. MILANO
UNIPOL BANCA SPA BOLOGNA
327

CHIBA KOGYO BANK,LTD. TOKYO
CITIBANK N.A. TOKYO
COMMERZBANK AG TOKYO
HOKURIKU BANK, LTD.,THE TOKYO
TOKYO
LIMITED,THE
MUFG BANK, LTD TOKYO
OKAZAKI SHINKIN BANK, THE OKAZAKI
RESONA BANK, LTD TOKYO
JAPAN
SAITAMA RESONA BANK, LIMITED TOKYO
SHIZUOKA BANK, LTD., THE SHIZUOKA
STANDARD CHARTERED BANK TOKYO
STATE BANK OF INDIA TOKYO
SUMITOMO MITSUI BANKING CORPORATION TOKYO
UBAF UNION BANQUE ARABIES TOKYO
WELL FARGO BANK TOKYO
WOORI BANK TOKYO
JORDAN INVESTBANK AMMAN
KUWAIT CITIBANK N.A. SAFAT
BANK OF BEIRUT S.A.L. BEIRUT

LEBANON
BYBLOS BANK S.A.L. BEIRUT
LIECHTENSTEIN LGT BANK AG VADUZ
BANCO SANTANDER (BRASIL) SA LUXEMBOURG

LUXEMBOURG
DANSKE BANK INTERNATIONAL S.A. LUXEMBOURG
MACAU STANDARD CHARTERED BANK MACAU
AM BANK (M) BERHAD KUALALUMPUR

BANK MUAMALAT MALAYSIA BERHAD (6175-W) KUALA LUMPUR
CITIBANK BERHAD KUALA LUMPUR
HSBC BANK MALAYSIA BERHAD KUALA LUMPUR
JP MORGAN CHASE BANK BERHAD KUALA LUMPUR
MALAYSIA
MALAYAN BANKING BERHAD KUALALUMPUR
MIZUHO BANK (MALAYSIA) BERHAD LABUAN
RHB BANK BERHAD KUALALUMPUR
STANDARD CHARTERED BANK (MALAYSIA) BERHAD KUALA LUMPUR
SUMITOMO MITSUI BANKING CORPORATION LABUAN
MALTA FIMBANK PLC SLIEMA
328
a bank with vision

MAURITIUS THE MAURITIUS COMMERCIAL BANK LIMITED PORT LOUISE
MAROCCO ATTIJARIWAFA BANK CASABLANCA
NEPAL NEPAL BANGLADESH BANK LIMITED KATHMONDU
ABN AMRO BANK N.V. AMSTERDAM

ABN AMRO BANK N.V. ROTTERDAM
CREDIT EUROPE BANK N.V. AMSTERDAM
DEUTSCHE BANK A.G. AMSTERDAM
NETHERLAND
HSBC BANK PLC. AMSTERDAM
KEB HANA BANK AMSTELVEEN
RABOBANK UTRECHT
YAPI KREDI BANK NEDERLAND N.V. AMSTERDAM
ANZ BANK NEW ZEALAND LIMITED WELLINGTON
NEW ZEALAND BANK OF NEWZEALAND WELLINGTON

AUCKLAND
LIMITED,THE
DANSKE BANK A/S TRONDHEIM
NORWAY DNB BANK ASA OSLO
SKANDINAVISKA ENSKILDA BANKEN OSLO
BANK MUSCAT SAOG MUSCAT
OMAN
BANK SOHAR RUWI
ASKARI BANK LIMITED KARACHI
BANK AL HABIB LIMITED. KARACHI
BANKISLAMI PAKISTAN LIMITED KARACHI
CITIBANK N.A. KARACHI
PAKISTAN HABIB METROPOLITAN BANK LIMITED KARACHI
SONERI BANK LIMITED KARACHI
STANDARD CHARTERED BANK (PAKISTAN) LIMITED KARACHI
SUMMIT BANK LTD. KARACHI
UNITED BANK LIMITED KARACHI
PANAMA KEB HANA BANK PANAMA
ASIAN DEVELOPMENT BANK MANILA

CITIBANK N.A. MANILA
PHILLIPINES KEB HANA BANK MANILA
MIZUHO BANK, LTD. MANILA
MUFG BANK, LTD. MANILA
329

BANK HANDLOWYW WARSZAWIE SA WARSAW
BANK POLSKA KASA OPIEKI SA - BANK PEKAO SA WARSAW
CREDIT AGRICOLE BANK POLSKA S.A. WROCLAW
POLAND
DANSKE BANK A/S S.A. ODZIAL W POLSCE WARSZAWA
PKO BANK POLSKI S.A. WARSZAWA
RAIFFEISEN BANK POLSKA S.A WARSZAWA
PORTUGAL NOVO BANCO, SA LISBON
DOHA BANK DOHA

MASHREQ BANK PSC DOHA
QATAR NATIONAL BANK DOHA
QATAR
STANDARD CHARTERED BANK DOHA
THE COMMERCIAL BANK (Q.S.C) DOHA
UNITED BANK LIMITED DOHA
ROMANIA UNICREDIT TIRIAC BANK SA BUCHAREST
ALAWWAL BANK RIYADH

BANK AL BILAD RIYADH
BANQUE SAUDI FRANSI RIYADH
BNP PARIBAS SAUDI ARABIA RIYADH
SAUDI ARABIA
EMIRATES NBD BANK PJSC RIYADH
ISLAMIC DEVELOPMENT BANK JEDDAH
NATIONAL COMMERCIAL BANK, THE JEDDAH
SAUDI BRITISH BANK RIYADH
SBERBANK SRBIJA A.D. BELGRADE
SERBIA
UNICREDIT BANK SRBIJA A.D. BELGRADE
ABN AMRO BANK N.V. SINGAPORE
AXIS BANK LIMITED SINGAPORE
BANK OF AMERICA, N.A. SINGAPORE
BANK OF MONTREAL SINGAPORE
CITIBANK N.A. SINGAPORE
COMMERZBANK AG SINGAPORE
DBS BANK LTD. SINGAPORE
SINGAPORE
DEUTSCHE BANK AG SINGAPORE
EMIRATES NBD BANK PJSC SINGAPORE
FIRST ABU DHABI BANK PJSC SINGAPORE
HABIB BANK LIMITED SINGAPORE
SINGAPORE
LIMITED, THE
ICICI BANK LIMITED SINGAPORE
INDIAN BANK SINGAPORE
330
a bank with vision

INDIAN OVERSEAS BANK SINGAPORE
INTESA SANPAOLO S.P.A. SINGAPORE
JPMORGAN CHASE BANK, N.A. SINGAPORE
KEB HANA BANK SINGAPORE
LANDESBANK BADEN-WUERTTEMBERG (LBBW) SINGAPORE
MALAYAN BANKING BERHAD SINGAPORE
MIZUHO BANK, LTD SINGAPORE
MUFG BANK, LTD SINGAPORE
NATIONAL BANK OF KUWAIT S.A.K., THE SINGAPORE
QATAR NATIONAL BANK SINGAPORE
SINGAPORE RABOBANK SINGAPORE
SHINHAN BANK SINGAPORE
SKANDINAVISKA ENSKILDA BANKEN AB (PUBL) SINGAPORE
STANDARD CHARTERED BANK SINGAPORE
STANDARD CHARTERED BANK (SINGAPORE) LIMITED SINGAPORE
SUMITOMO MITSUI BANKING CORPORATION SINGAPORE
UBAF- UNION BANQUE ARABIES SINGAPORE
UCO BANK SINGAPORE
UNICREDIT BANK AG SINGAPORE
WELLS FARGO BANK SINGAPORE
WOORI BANK SINGAPORE
LJUBLJANA
SLOVENIA UNICREDIT BANKA SLOVENIJA D.D.
CITIBANK SOUTH AFRICA SANDTON

SOUTH AFRICA
FIRSTRAND BANK LTD JOHANNESBURG
CITIBANK KOREA INC SEOUL
DAEGU BANK LTD,THE DAEGU
DBS BANK LTD SEOUL
SEOUL
LIMITED, THE
INDUSTRIAL BANK OF KOREA SEOUL
JPMORGAN CHASE BANK, N.A. SEOUL
KEB HANA BANK SEOUL
KOOKMIN BANK SEOUL
KOREA DEVELOPMENT BANK, THE SEOUL
SOUTH KOREA
MIZUHO BANK, LTD SEOUL
MUFG BANK, LTD SEOUL
SHINHAN BANK SEOUL
STANDARD CHARTERED BANK KOREA LIMITED SEOUL
SUHYUP BANK SEOUL
SUMITOMO MITSUI BANKING CORPORATION SEOUL
UBAF UNION BANQUE ARABIES SEOUL
WELLS FARGO BANK SEOUL
WOORI BANK SEOUL
331

ARESBANK, S.A. MADRID
BANCO CAIXA GERAL MADRID
BANCO DE SABADELL S.A SABADELL
LA CORUNA (A
BANCO PASTOR S.A.
CORUNA)
BANCO POPULAR ESPANOL, S.A. MADRID
BANCO SANTANDER S.A. MADRID
SPAIN BANKIA S.A. VALENCIA
CAIXABANK, S.A. BARCELONA
CAJAMAR CAJA RURAL, SOCIEDAD COOPERATIVA DE
ALMERIA
CREDITO
COMMERZBANK AG MARDID
CREDIT AGRICOLE CIB MADRID
DEUTSCHE BANK SOCIEDAD ANONIMA BARCELONA
MUFG BANK (EUROPE) N.V. SUCURSAL EN ESPANA MADRID
AXIS BANK LIMITED COLOMBO
CITIBANK N.A. COLOMBO
SRILANKA COMMERCIAL BANK OF CEYLON PLC COLOMBO
ICICI BANK LIMITED COLOMBO
STANDARD CHARTERED BANK COLOMBO
DANSKE BANK STOCKHOLM
SKANDINAVISKA ENSKILDA BANKEN STOLCKHOM
SWEDEN SKANDINAVISKA ENSKILDA BANKEN GOTEBORG
SVENSKA HANDELSBANKEN STOLCKHOM
SWEDBANK AB (PUBL) STOCKHOLM
ARAB BANK (SWITZERLAND) LTD ZURICH
BANCA POPOLARE DI SONDRIO (SUISSE) LUGANO
BANQUE CANTONALE DE GENEVE GENEVA
BANQUE CANTONALE VAUDOISE LAUSANNE
BANQUE DE COMMERCE ET DE PLACEMENTS S.A. GENEVA
COMMERZBANK AG ZURICH
CREDIT EUROPE BANK (SUISSE) S.A. GENEVA
SWITZERLAND
CREDIT SUISSE AG ZURICH
HABIB BANK AG ZURICH ZURICH
HSBC BANK PLC ZURICH
ODDO BHF (SCHWEIZ) AG ZURICH
UBL (SWITZERLAND) AG ZURICH
UBS SWITZERLAND AG ZURICH
ZUERCHER KANTONALBANK ZURICH
BANK OF AMERICA, N.A. TAIPEI
CITIBANK TAIWAN LIMITED TAIPEI
DBS BANK (TAIWAN) LTD TAIPEI
E. SUN COMMERCIAL BANK LTD. TAIPEI
TAIWAN TAIPEI
LTD, THE
HSBC BANK (TAIWAN) LIMITED TAIPEI
HUA NAN COMMERCIAL BANK, LTD. TAIPEI
JPMORGAN CHASE BANK, N.A. TAIPEI
LAND BANK OF TAIWAN TAIPEI
332
a bank with vision

MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD. TAIPEI
MIZUHO BANK, LTD TAIPEI
MUFG BANK, LTD TAIPEI
SHANGHAI COMMERCIAL AND SAVINGS BANK, LTD., THE TAIPEI
STANDARD CHARTERED BANK (TAIWAN) LIMITED TAIPEI
TAIWAN
STANDARD CHARTERED BANK TAIPEI
SUMITOMO MITSUI BANKING CORPORATION TAIPEI
TAISHIN INTERNATIONAL BANK TAIPEI
THE BANK OF NEW YORK MELLON TAIPEI
WELL FARGO BANK TAIPEI
BANK OF AYUDHYA PUBLIC COMPANY LIMITED BANGKOK
CITIBANK N.A. BANGKOK
EXPORT-IMPORT BANK OF THAILAND BANGKOK
KASIKORNBANK PUBLIC COMPANY LIMITED BANGKOK
THILAND KRUNG THAI BANK PUBLIC COMPANY LIMITED BANGKOK
STANDARD CHARTERED BANK (THAI) PCL BANGKOK
SUMITOMO MITSUI BANKING CORPORATION BANGKOK
THANACHART BANK PUBLIC COMPANY LIMITED BANGKOK
TMB BANK PUBLIC COMPANY LIMITED BANGKOK
TUNISIA BANQUE TUNISO-LIBYENNE TUNIS
AKBANK T.A.S. ISTANBUL

AKTIF YATIRIM BANKASI A.S. ISTANBUL
ALBARAKA TURK PARTICIPATION BANK ISTANBUL
CITIBANK AS ISTANBUL
HABIB BANK LTD. ISTANBUL
ICBC TURKEY BANK A.S. ISTANBUL
TURKEY KUVEYT TURK KATILIM BANKASI A.S. ISTANBUL
ODEABANK A.S. ISTANBUL
TURKIYE CUMHURIYETI ZIRAAT BANKASI A.S. ISTANBUL
TURKIYE FINANS KATILIM BANKASI A.S. ISTANBUL
TURKIYE HALK BANKASI A.S. ANKARA
TURKLAND BANK A.S. (T-BANK) ISTANBUL
ZIRAAT KATILIM BANKASI A.S ISTANBUL
ABU DHABI COMMERCIAL BANK ABU DHABI
AXIS BANK LIMITED DUBAI
BANQUE DE COMMERCE ET DE PLACEMENTS SA-DIFC
DUBAI
BRANCH
CITIBANK N.A. DUBAI
COMMERCIAL BANK OF DUBAI DUBAI
UAE CREDIT EUROPE BANK (DUBAI) LTD DUBAI
DOHA BANK DUBAI
DUBAI ISLAMIC BANK DUBAI
EMIRATES ISLAMIC BANK DUBAI
EMIRATES NBD BANK PJSC DUBAI
FIRST ABU DHABI BANK PJSC ABU DHABI
333

HABIB BANK AG ZURICH DUBAI
HABIB BANK LIMITED DUBAI
ICICI BANK LIMITED DUBAI
MASHREQ BANK PSC DUBAI
NATIONAL BANK OF FUJAIRAH FUJAIRAH
RAS AL
NATIONAL BANK OF RAS AL KHAIMAH
UAE KHAIMAH
NATIONAL BANK OF UMM AL QAIWAIN PSC. DUBAI
NOOR BANK P.J.S.C. DUBAI
STANDARD CHARTERED BANK DUBAI
SUMITOMO MITSUI BANKING CORPORATION DUBAI
UNICREDIT S.P.A. ABU DHABI
UNITED BANK LIMITED DUBAI
BANK NEGARA INDONESIA (PERSERO) P.T. LONDON
BNP PARIBAS LONDON
BYBLOS BANK EUROPE S.A. LONDON
CITIBANK N.A. LONDON
COMMERZBANK AG LONDON
DANSKE BANK LONDON
DBS BANK LTD LONDON
HABIB BANK AG ZURICH LONDON
HABIB BANK UK LONDON
HSBC BANK PLC LONDON
HSBC UK BANK PLC LONDON
ICICI BANK UK PLC LONDON
UK
INTESA SANPAOLO SPA LONDON
JPMORGAN CHASE BANK, N.A. LONDON
MALAYAN BANKING BERHAD LONDON
MASHREQ BANK PSC LONDON
MUFG BANK, LTD LONDON
SHINHAN BANK LONDON
SONALI BANK (UK) LTD LONDON
STANDARD CHARTERED BANK LONDON
UNICREDIT BANK AG LONDON
WELLS FARGO BANK, N.A. LONDON
WELLS FARGO SECURITIES INTERNATIONAL LIMITED LONDON
WOORI BANK LONDON
BANK OF AMERICA, N.A NEW YORK
BANK OF AMERICA, N.A. NEW YORK
BNP PARIBAS U.S.A NEW YORK
CITIBANK N.A. NEW YORK
CITY NATIONAL BANK LOS ANGELES
USA DEUTSCHE BANK TRUST COMPANY AMERICAS NEW YORK
EAST-WEST BANK PASADENA,CA
FIRST TENNESSEE BANK N.A. MEMPHIS,TN
HABIB AMERICAN BANK LTD NEW YORK
HABIB BANK LIMITED NEW YORK
HSBC BANK NEW YORK
ICICI BANK LIMITED NEW YORK
334
a bank with vision

INTERNATIONAL FINANCE CORPORATION WASHINGTON
JPMORGAN CHASE BANK, N.A. NEW YORK
KEB HANA BANK NEW YORK
KEYBANK N.A. NEW YORK
MASHREQ BANK PSC NEW YORK
METROPOLITAN BANK AND TRUST COMPANY NEW YORK
MIZUHO BANK, LTD NEW YORK
MONTE DEI PASCHI DI SIENA SPA - NEW YORK
MUFG BANK, LTD NEW YORK
NEW YORK COMMUNITY BANK NEW YORK
SHINHAN BANK NEW YORK
LOS
SHINHAN BANK AMERICA
ANGELES,CA
STANDARD CHARTERED BANK NEW YORK
USA
STERLING NATIONAL BANK NEW YORK
SUMITOMO MITSUI BANKING CORPORATION NEW YORK
MOUNT
TD BANK, N.A.
LAUREL,NJ
THE BANK OF NEW YORK MELLON NEW YORK
U.S.BANK N.A. MINNEAPOLIS
WELLS FARGO BANK N.A. NEW YORK
WELLS FARGO BANK N.A. LOS ANGELES
WELLS FARGO BANK N.A. SAN FRANCISCO
WELLS FARGO BANK N.A. PHILADELPHIA
WELLS FARGO BANK, N.A. MIAMI
WOORI AMERICA BANK NEW YORK
WOORI BANK LOS ANGELES
WOORI BANK NEW YORK
NATIONAL BANK FOR FOREIGN ECONOMIC ACTIVITY OF
UZBEKISTAN TASHKENT
THE REPUBLIC OF UZBEKISTAN
HO CHI MINH
AN BINH COMMERCIAL JOINT STOCK BANK
CITY
HO CHI MINH
ASIA COMMERCIAL BANK
CITY
CITIBANK N.A. HANOI
HO CHI MINH
HSBC BANK (VIETNAM) LTD.
CITY
JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE
HANOI
OF VIETNAM
VIETNAM KEB HANA BANK HANOI
MIZUHO BANK, LTD HANOI
HO CHI MINH
MUFG BANK, LTD
CITY
HO CHI MINH
SHINHAN BANK VIETNAM LIMITED
CITY
STANDARD CHARTERED BANK (VIETNAM) LIMITED HANOI
HO CHI MINH
SUMITOMO MITSUI BANKING CORPORATION
CITY
WOORI BANK VIETNAM LIMITED HANOI
335
336
Independent Auditor’s Report to the Shareholders 338

Consolidated Balance Sheet 343
Consolidated Profit and Loss Accounts 345
Consolidated Cash Flow Statement 346
Consolidated Statement of Changes in Equity 347
Balance Sheet 348
Profit and Loss Accounts 350
Cash Flow Statement 351
Statement of Changes in Equity 352
FINANCIAL STATEMENTS OF ISLAMIC BANKING BRANCHES
Balance Sheet 424

FINANCIAL STATEMENTS OF OFF-SHORE BANKING
Balance Sheet 434

FINANCIAL STATEMENTS OF SEBL SUBSIDIARIES
Southeast Bank Capital Services Limited 443

Southeast Financial Services (UK) Limited 456
Southeast Financial Services (Australia) Pty Limited 465
Southeast Exchange Company (South Africa) Pty Limited 469
Independent Auditor’s Report

To the Shareholders of Southeast Bank Limited
Report on the Audit of the Consolidated and Separate Financial Statements
Opinion
We have audited the consolidated financial statements of Southeast Bank Limited and its subsidiaries (the “Group”)
as well as the separate financial statements of Southeast Bank Limited (the “Bank”), which comprise the consolidated
and separate Balance sheet as at 31 December 2018 and the consolidated and separate statement of profit and loss,
consolidated and separate statements of changes in equity and consolidated and separate cash flow statements for the
year then ended, and notes to the consolidated and separate financial statements, including a summary of significant
accounting policies.
In our opinion, the accompanying consolidated financial statements of the Group and separate financial statements of
the Bank give a true and fair view of the consolidated Balance sheet of the Group and the separate Balance sheet of
the Bank as at 31 December 2018 and of its consolidated and separate statement of profit and loss and cash flows for
the year then ended in accordance with International Financial Reporting Standards (IFRSs) as explained in note 2 to 3.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under
those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated and Separate
Financial Statements section of our report. We remained 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),
Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Bank, and we have fulfilled our other ethical
responsibilities in accordance with the IESBA Code and the Institute of Chartered Accountants of Bangladesh (ICAB)
Bye Laws. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
consolidated and separate financial statements of the current period. We summarize below the key audit matters in
arriving at our audit opinion above, together with our key audit procedures to address those matters and, as required
for public interest entities, our results from those procedures. These matters were addressed in the context of our audit
of the consolidated and separate financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
The key audit matters are discussed below together with an explanation of how the risk and our audit response was
tailored to address these specific areas.
All key audit matters are applicable to both the group and parent company.
Key audit matters: Risks: Our responses:

(i) Provision for loans and advances: The financial statement We established our audit approach over the
risk arises particularly from individual provision for control and substantive
As of the reporting date, the Group estimation uncertainties tests considering the following:
reports loans and advances/ in the calculation of
investments BDT 26,767.16 crore individually assessed  the accuracy of data input into the system
representing 70% of total assets; and provision on loan which are used for credit grading and the approval of
provisions regarding loan and advances based on assumptions and credit facilities.
of BDT 485.50 crore represents 33% of scenarios i.e. probability of
bank’s total operating income.  the ongoing monitoring and discovery of
default, ability to repossess loans displaying indicators of provision
Refer to note no 10, 11 and 21.10 to collateral and recovery etc. and detection of classified and unclassified
the financial statements. As part of our risk status on a timely basis.
assessment, we identified We tested the design and operating
the following judgments effectiveness of key controls focusing on the
which could give rise to following:
material misstatement or
management bias:  Tested the credit appraisal, loan
disbursement procedures, monitoring and
provisioning process;
338
a bank with vision

 For individually  Identification of loss events, including early
assessed provisions, warning and default warning process.
the measurement
of the provision is  Reviewed quarterly Classification of Loans
dependent on the (CL);
reasonable valuation Our substantive procedures in relation to the
of collateral, estimates provision for loans and advances portfolio
of exit values and the comprised the following:
timing of cash flows.
 Completeness and
timing of recognition  Reviewed the adequacy of the company’s
of provision of loans general and specific provisions;
in accordance with
criteria set out in  Assessed the methodologies on which the
BRPD circular no. 14 provision amounts based, recalculated the
& 15/2012, 19/2012, provisions and tested the completeness
05/2013, 16/2014, and accuracy.
08/2015, 15/2017.  In the tripartite meeting dated 21.04.2019 a
discussion was made on fixation of ultimate
provision for investment and adequate
provision was maintained unanimously.
Our Results: Finally assessed the

appropriateness and presentation of
disclosures against relevant accounting
standards and Bangladesh Bank guidelines.
(ii) Measurement of deferred tax Recognition and measure- We conducted a risk assessment to obtain an
assets/liabilities: ment of deferred tax understanding of the relevant tax laws and
assets contain judgment regulations considering the following:
The Bank reported net deferred tax and objective estimates
liability of BDT 114.499 crore as at 31 regarding future taxable  evaluation of the policies used for
December 2018. profit and the usability of recognition and measurement of deferred
tax assets in accordance with IAS 12.
For significant accounting policies unused tax losses and tax
and critical accounting estimates for credits.  test of design, implementation and
the recognition and measurement of The significant risk arises operating effectiveness of internal controls
deferred tax assets, we refer to note from estimation of future with respect to recognition of deferred tax
3.16.2 of the consolidated financial usability of the benefits. assets.
statements “Significant Accounting Such estimation required  the computation of deferred tax liabilities/
Policies” (section “Tax Expense”). in relation to deferred assets by applying appropriate provisions of
Refer to note no 20, 21 and 21.3.2 to tax assets as their tax law to scheduled reversals particularly
the consolidated financial statements. recoverability is dependent the potential tax rates applicable at the
on forecasts of profitability time of expected reversals.
available in near future.
 the strategy’s compliance with the tax laws.
Our Result: Based on the results of our

key controls testing and substantive audit
procedures we consider recognition and
measurement of deferred tax liability in
particular regarding the assumptions and
parameters to develop the taxable profit
and usability of tax losses and credits to be
reasonable.
339

(iii) Carrying value of investments Recoverability of the We focused on the appropriateness of the
in subsidiary(s) by the Bank: foreign investment is application of value in use model, the key
generally considered a high assumptions used in the model, the reasonably
The Bank has invested BDT 548.99 risk matter. However, due possible alternative assumptions, particularly
crore in equity shares of its subsidiary to the materiality of the where they had the most impact on the value
Southeast Bank Capital Services investment in the context in use calculation.
Limited (in Bangladesh). It has also of the parent company’s
invested in foreign subsidiaries namely financial statements, this We compared the carrying amount of the
Southeast Financial Services (UK) Ltd, is considered to be the total investment balance with the relevant
Southeast Exchange Company (South area that had the great subsidiary’s balance sheet to identify whether
Africa) Pty Ltd and Southeast Financial focus of our overall parent their net assets were in excess of their carrying
Services (Australia) Pty Ltd. As at 31 company audit. amount and assessed historical financial
December 2018 the carrying value of performance.
the investment in foreign subsidiaries
was BDT 6.51 crore. Total investment Our results: We considered the company’s
in subsidiaries was BDT 555.50 which assessment of the recoverability of the
represents 1% of the Bank’s total investment in subsidiaries to be acceptable.
assets.
Refer to note no 15, 15.3 and 15.4 to

the consolidated financial statements.
(iv) IT systems andInternal IT systems and controls Our procedures included:
Controls due to the pervasive nature
and complexity of the IT We tested a sample of key controls operating over
The Group’s key financial accounting environment, the large the information technology in relation to financial
and reporting processes are highly volume of transactions accounting and reporting systems, including
dependent on the automated controls processed in numerous system access and system change management,
over the Group’s information systems locations daily and the program development and computer operations.
and as such there exists an inherent reliance on automated
risk that IT control deficiency could and IT dependent manual We obtained management’s evaluation of the
result in the financial accounting and controls. access rights granted to applications relevant
reporting being materially misstated. to financial accounting and reporting systems.
Controls over Information We also assessed the operating effectiveness
Refer to note no 3.20, 69.1 and 69.2 to System may be carried out of controls over granting, removal and
the financial statements. by IT personnel, users of the appropriateness of access rights.
system, a separate control We reviewed the System of Internal Control which
effect on processing of is designed to manage all the risks of failure to
transactions in application a reasonable level and this System provides
systems and also ineffective reasonable assurance of effective and efficient
controls may have a operations covering all controls including financial
risk of misstatements at & operational controls, reliability of the financial
application systems. information, compliance with applicable laws &
regulations, adherence to management policies,
safeguarding of Bank’s Assets, prevention &
detection of fraud and errors and accuracy and
completeness of the accounting records.
We checked standards over systems design,

programming and documentation, segregation
of duties so that those responsible for design
are not responsible for testing and installation
procedures.
Our results: We considered the user access

management, segregation of duties and change
management controls in relation to financial
accounting and reporting systems to be
acceptable.
340
a bank with vision
Responsibilities of Management and Those Charged with Governance for the Consolidated and Separate
Financial Statements and Internal Controls
Management is responsible for the preparation and fair presentation of the consolidated financial statements of the
Group and also separate financial statements of the Bank in accordance with IFRSs as explained in note 3.21 and for
such internal control as management determines is necessary to enable the preparation of consolidated and separate
financial statements that are free from material misstatement, whether due to fraud or error. The Bank Company Act,
1991 (amended upto 2018) and the Bangladesh Bank Regulations require the Management to ensure effective internal
audit, internal control and risk management functions of the Bank. The Management is also required to make a self-
assessment on the effectiveness of anti-fraud internal controls and report to Bangladesh Bank on instances of fraud
and forgeries.
In preparing the consolidated and separate 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 either intends to liquidate the Group and the Bank or
to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s and the Bank’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated and separate 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 consolidated and separate financial statements
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism
throughout the audit.
We also:
 Identify and assess the risks of material misstatement of the consolidated and separate 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. 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.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
 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 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 auditor’s report to the related disclosures in
the consolidated and separate 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 cause the Group and the Bank to cease to continue as a going concern.
 Evaluate the overall presentation, structure and content of the consolidated and separate financial statements,
including the disclosures, and whether the consolidated and separate financial 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 to express an opinion on the consolidated financial statements. We are responsible for the
direction, supervision and performance of the group audit. We remain solely responsible for our audit 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.
341
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the consolidated and separate financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated
in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
Report on other Legal and Regulatory Requirements
In accordance with the Companies Act, 1994, the Securities and Exchange Rules 1987, the Bank Company Act,
1991(amended upto 2018) and the rules and regulations issued by Bangladesh Bank, we also report that:
(i) We have obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purpose of our audit and made due verification thereof;
(ii) To the extent noted during the course of our audit work performed on the basis stated under the Auditor’s
Responsibility section in forming the above opinion on the consolidated financial statements of the Group and
the separate financial statements of the Bank and considering the reports of the Management to Bangladesh
Bank on antifraud internal controls and instances of fraud and forgeries as stated under the Management’s
Responsibility for the financial statements and internal control:
(a) Internal audit, internal control and risk management arrangements of the Group as disclosed in the
financial statements appeared to be materially adequate;
(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 its related entities {other than matters disclosed in these financial statements};
(iii) Financial statements of Southeast Bank Limited and its subsidiaries in Bangladesh, Southeast Bank Capital
Services Limited have been audited by us and in outside Bangladesh namely, Southeast Financial Services (UK)
Ltd have been certified by Jahan & Co., Chartered Management Accountants and Southeast Exchange Company
(South Africa) Pty Ltd have been audited by G.L. PALMER AND COMPANY, registered auditors and Southeast
Financial Services (Australia) Pty Ltd. and have been properly reflected in the consolidated financial statements
(note no. 1.7);
(iv) In our opinion, proper books of accounts as required by law have been kept by the Group and the Bank so far
as it appeared from our examination of those books;
(v) The records and statements submitted by the branches have been properly maintained and consolidated in
the financial statements;
(vi) The consolidated balance sheet and consolidated profit and loss account together with the annexed notes
dealt with by the report are in agreement with the books of account and returns;
(vii) The expenditures incurred were for the purpose of the Bank’s business for the year;
(viii) The consolidated financial statements of the Group and the separate financial statements of the Bank have
been drawn up in conformity with prevailing rules, regulations and accounting standards as well as related
guidance issued by Bangladesh Bank;
(ix) Adequate provisions have been made for advance and other assets which are in our opinion, doubtful of recovery;
(x) The information and explanations required by us have been received and found satisfactory;
(xi) We have reviewed over 80% of the risk weighted assets of the Bank and spent over 8,200 person hours; and
(xii) Capital to Risk-weighted Asset Ratio (CRAR) as required by Bangladesh Bank has been maintained adequately
during the year.
Pinaki Das, FCA

Pinaki & Company
Dhaka,
Dated: 30 April 2019
342
a bank with vision
Southeast Bank Limited and its subsidiaries

Consolidated Balance Sheet
As at 31 December 2018
2018 2017
Note
Taka Taka
PROPERTY AND ASSETS

Cash 4
In hand (including foreign currencies) 3,598,852,097 3,010,982,975
Balance with Bangladesh Bank and its agent banks
(including foreign currencies) 17,916,575,574 17,968,153,354
21,515,427,671 20,979,136,329
Balance with other banks and financial institutions 5
In Bangladesh 3,984,794,486 3,196,881,943
Outside Bangladesh 2,449,639,553 1,082,725,811
6,434,434,039 4,279,607,754
Money at call and on short notice 7 6,897,100,000 3,643,950,000
Investments 8
Government 50,963,038,896 50,204,799,973
Others 14,646,513,537 12,706,244,499
65,609,552,433 62,911,044,472
Loans and advances/investments 10
Loans, cash credit, overdrafts etc./investments 255,400,659,122 223,657,502,019
Bills purchased and discounted 12,270,968,683 10,659,214,310
267,671,627,805 234,316,716,329
Fixed assets including premises, furniture and fixtures 12 9,337,295,160 9,321,796,126
Other assets 14 4,110,241,772 3,835,803,180
Non-banking assets - -
Total assets 381,575,678,880 339,288,054,190
LIABILITIES AND CAPITAL
Liabilities
Borrowings from other banks, financial institutions and agents 16
Subordinated bond 11,800,000,000 7,400,000,000
Other borrowings 11,211,700,343 10,181,648,728
23,011,700,343 17,581,648,728
Deposits and other accounts 18
Current/Al-wadeeah current accounts and other accounts 40,472,065,762 35,511,525,367
Bills payable 4,494,551,361 4,933,769,345
Savings bank/Mudaraba savings bank deposits 27,259,920,347 23,896,582,534
Fixed deposits/Mudaraba fixed deposits 226,108,257,117 205,486,197,802
298,334,794,587 269,828,075,048
Other liabilities 20 32,102,455,720 26,044,632,850
Total liabilities 353,448,950,650 313,454,356,626
Capital/shareholders' equity
Paid up capital 22.2 10,544,927,020 9,169,501,760
Statutory reserve 23 10,094,153,565 9,170,000,000
Revaluation reserve 24 4,360,801,902 4,534,239,054
Other reserve 25 247,650,000 247,650,000
Foreign currency translation reserve 26 (28,918,605) (14,142,765)
Retained earnings 27 2,898,043,836 2,716,398,712
Total shareholders' equity 28,116,657,718 25,823,646,761
Non-controlling interest 29 10,070,512 10,050,803
Total liabilities and shareholders' equity 381,575,678,880 339,288,054,190
343

Consolidated Balance Sheet
2018 2017
Note
Taka Taka
OFF-BALANCE SHEET ITEMS

Contingent liabilities
Acceptances and endorsements 30.1 63,853,762,984 57,138,532,985
Letters of guarantee 30.2 19,197,993,041 15,924,963,164
Irrevocable letters of credit 30.3 36,374,559,306 44,195,137,436
Bills for collection 30.4 24,664,926,813 22,666,586,856
Other contingent liabilities 30.5 1,413,684,000 1,744,473,000
Total contingent liabilities 145,504,926,144 141,669,693,441
Other commitments
Documentary credits and short term trade-related transactions - -
Forward assets purchased and forward deposits placed - 827,101,200
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -
Total other commitments - 827,101,200
Total off-balance sheet items including contingent liabilities 145,504,926,144 142,496,794,641
The annexed notes 1 to 71 form an integral part of these financial statements.
Chairman Director Director Managing Director
Signed in terms of our separate report of even date
Dhaka,
Date : 30 April 2019 Pinaki & Company
344
a bank with vision

Consolidated Profit and Loss Account
For the year ended 31 December 2018
2018 2017
Note
Taka Taka
Interest income/profit on investments 32 23,977,837,107 17,400,550,075

Interest paid/profit shared on deposits and borrowings etc. 34 (18,777,897,307) (13,372,859,997)
Net interest income/net profit on investments 5,199,939,800 4,027,690,078
Investment income 36 5,129,753,568 5,570,648,397
Commission, exchange and brokerage 38 3,652,775,278 3,462,929,452
Other operating income 40 979,447,885 871,775,465
9,761,976,731 9,905,353,314
Total operating income (A) 14,961,916,531 13,933,043,392
Salaries and allowances 42 2,026,521,807 1,880,629,864
Rent, taxes, insurance, electricity, etc. 44 1,031,566,389 931,624,353
Legal expenses 1,299,331 1,832,217
Postage, stamp, telecommunication, etc. 46 182,353,593 176,224,992
Stationery, printing, advertisements, etc. 48 165,642,288 149,545,742
Managing Director's salary and fees 50 10,072,000 10,037,423
Directors' fees 51 2,926,099 3,785,203
Auditors' fees 53 1,847,371 1,906,893
Depreciation and repair 54 476,294,631 455,388,535
Other expenses 56 1,280,397,900 1,259,769,572
Total operating expenses (B) 5,178,921,410 4,870,744,794
Profit before provision (C=A-B) 9,782,995,122 9,062,298,598
Provision for loans and advances/investments 21.1
General provision (119,210,024) 1,010,610,024
Specific provision 4,974,285,948 3,781,324,521
4,855,075,924 4,791,934,545
Provision for diminution in value of investments 21.7 413,060,983 (217,213,998)
Other provisions 21.5 (153,800,000) 305,500,000
Total provision (D) 5,114,336,907 4,880,220,547
Total profit before taxation (E=C-D) 4,668,658,214 4,182,078,051
Provision for taxation 58
Current 2,230,449,370 2,863,298,938
Deferred (35,000,000) 150,150,332
2,195,449,370 3,013,449,270
Net profit after taxation 2,473,208,844 1,168,628,781
Net profit after taxation attributable to:
Equity holders' of the Bank 2,473,189,135 1,168,581,138
Non-controlling interest 19,709 47,643
Appropriations
Statutory reserve 23 924,153,565 -
924,153,565 -
Retained surplus during the year 1,549,055,280 1,168,628,781
Earnings per share (par value Taka 10) 64 2.35 1.11


Dhaka,
345

Consolidated Cash Flow Statement
2018 2017
Note
Taka Taka
A. Cash flows from operating activities:
Interest receipts in cash 28,773,552,446 22,799,565,274
Interest payments (17,355,370,160) (13,037,924,621)
Dividend receipts 178,893,878 246,591,937
Fees and commission receipts in cash 38 3,652,775,278 3,462,929,452
Recoveries on loans previously written-off 404,812,584 154,213,601
Cash payments to employees (2,036,593,807) (1,854,001,450)
Cash payments to suppliers (143,129,691) (149,511,264)
Income taxes paid (2,194,287,059) (2,647,358,679)
Receipts from other operating activities 60 979,305,053 871,775,465
Payments for other operating activities 62 (2,479,049,698) (2,345,344,075)
Operating profit before changes in operating assets and liabilities (i) 9,780,908,823 7,500,935,640
Increase (decrease) in operating assets and liabilities
Sale of trading securities 1,723,256,168 4,714,880,794
Purchase of trading securities (2,348,147,650) (9,868,562,519)
Loans and advances to customers (35,930,567,970) (43,819,951,511)
Other assets (189,426,865) (742,818,232)
Deposits from other banks 1,030,051,615 2,210,013,646
Deposits from customers 27,230,358,562 39,519,710,822
Other liabilities 2,253,081,234 2,200,804,534
Cash generated from (used in) operating assets and liabilities (ii) (6,231,394,905) (5,785,922,466)
Net cash flows from operating activities (A=i+ii) 3,549,513,918 1,715,013,174
B. Cash flows from investing activities:
Proceeds from sale of securities 54,654,139,635 85,715,949,901

Payments for purchase of securities (54,337,993,353) (83,124,735,925)
Purchase of fixed assets (372,391,753) (719,836,645)
Sale of fixed assets 3,811,056 7,842,971
Cash generated from (used in) investing activities (B) (52,434,415) 1,879,220,302
C. Cash flows from financing activities:
Receipts from issue of loan capital & debt security 5,000,000,000 -
Payments for redemption of loan capital & debt security (600,000,000) -
Dividends paid - (1,833,900,352)
Payment against lease obligation (2,477,131) (8,204,713)
Receipts from issue of ordinary shares - -
Cash generated from (used in) financing activities (C) 4,397,522,869 (1,842,105,065)
D. Net increase (decrease) in cash and cash equivalents (A+B+C) 7,894,602,372 1,752,128,411
E. Effects of exchange rate changes on cash and cash equivalents 22,040,234 6,919,829
F. Cash and cash equivalents at beginning of the year 28,907,035,123 27,147,986,883
G. Cash and cash equivalents at end of the year (D+E+F) 36,823,677,730 28,907,035,123
Cash and cash equivalents at end of the year represents
Cash in hand (including foreign currencies) 4 3,598,852,097 3,010,982,975
(including foreign currencies) 4 17,916,575,574 17,968,153,354
Balance with other banks and financial institutions 5 6,434,434,039 4,279,607,754
Treasury bills 9.1.1 1,971,577,720 -
Prize bond 9.1.1 5,138,300 4,341,040
36,823,677,730 28,907,035,123
346
Consolidated Statement of Changes in Equity
Non-
Paid up Statutory Revaluation Other Retained Total equity
Translation Total controlling
Particulars capital reserve reserve reserves earnings of the Group
reserve interest
Taka Taka Taka Taka Taka Taka Taka Taka Taka
Balance as at 1 January 2018 9,169,501,760 9,170,000,000 4,534,239,054 247,650,000 (14,142,765) 2,716,398,712 25,823,646,761 10,050,803 25,833,697,564
Changes in accounting policy/ Prior year adjustments - - - - - - - - -
Restated balance 9,169,501,760 9,170,000,000 4,534,239,054 247,650,000 (14,142,765) 2,716,398,712 25,823,646,761 10,050,803 25,833,697,564
Surplus/deficit on account of revaluation of

- - - - - - - - -
properties
Surplus/deficit on account of revaluation of
- - (173,437,152) - - - (173,437,152) - (173,437,152)
investments
Currency translation differences - - - - (14,775,840) 8,034,814 (6,741,025) - (6,741,025)
Net gains and losses not recognized
- - (173,437,152) - (14,775,840) 8,034,814 (180,178,177) - (180,178,177)
in the income statement
Net profit for the year - - - - - 2,473,189,135 2,473,189,135 19,709 2,473,208,844

Cash dividend - - - - - - - - -
Issue of share capital/ Bonus share 1,375,425,259 - - - - (1,375,425,259) - - -
Appropriation made during the year
Statutory reserve - 924,153,565 - - - (924,153,565) - - -
Balance as at 31 December 2018 10,544,927,020 10,094,153,565 4,360,801,902 247,650,000 (28,918,605) 2,898,043,836 28,116,657,718 10,070,512 28,126,728,230
Balance as at 31 December 2017 9,169,501,760 9,170,000,000 4,534,239,054 247,650,000 (14,142,765) 2,716,398,712 25,823,646,761 10,050,803 25,833,697,564
Annual Report 2018
347
a bank with vision

Balance Sheet
2018 2017
Note
Taka Taka
PROPERTY AND ASSETS
Cash 4.1
In hand (including foreign currencies) 3,598,790,655 3,010,980,173
(including foreign currencies) 17,916,575,574 17,968,153,354
21,515,366,229 20,979,133,527
In Bangladesh 3,984,794,486 3,196,881,943
Outside Bangladesh 2,272,907,523 965,226,853
6,257,702,009 4,162,108,796
Investments 9
Government 50,963,038,896 50,204,799,973
Others 11,920,717,298 10,118,368,557
62,883,756,194 60,323,168,530
Loans and advances/investments 11
Loans, cash credit, overdrafts etc./investments 252,933,241,876 221,191,785,619
Bills purchased and discounted 12,270,968,683 10,659,214,310
265,204,210,559 231,850,999,929
Fixed assets including premises, furniture and fixtures 13 8,782,363,746 8,708,569,268
Other assets 15 9,554,422,290 9,241,315,075
Non - banking assets - -
Total assets 381,094,921,027 338,909,245,125
Liabilities
Borrowings from other banks, financial institutions and agents 17
Other borrowings 11,157,491,516 10,181,648,728
22,957,491,516 17,581,648,728
Bills payable 4,494,551,361 4,933,769,345
298,320,586,377 269,833,088,669
Paid up capital 22.2 10,544,927,020 9,169,501,760
Revaluation reserve 24 4,360,801,902 4,534,239,054
Other reserve 25 247,650,000 247,650,000
Total shareholders' equity 28,051,339,079 25,761,744,012
Total liabilities and shareholders' equity 381,094,921,027 338,909,245,125
348
a bank with vision

Balance Sheet
2018 2017
Note
Taka Taka
Bills for collection 30.4 24,664,926,813 22,666,586,856
Other contingent liabilities 30.5 1,413,684,000 1,744,473,000
Total contingent liabilities 145,504,926,144 141,669,693,441
Other commitments
Documentary credits and short term trade-related transactions - -
Forward assets purchased and forward deposits placed - 827,101,200
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -
Total other commitments - 827,101,200
Total off-balance sheet items including contingent liabilities 145,504,926,144 142,496,794,641
Dhaka,
Date: 30 April 2019 Pinaki & Company
349

Profit and Loss Account
2018 2017
Note
Taka Taka
Interest income/profit on investments 33 23,951,689,857 17,384,904,816
Interest paid/profit shared on deposits and borrowings etc. 35 (18,775,867,174) (13,378,247,565)
Net interest income/net profit on investments 5,175,822,683 4,006,657,251
Investment income 37 5,062,022,727 5,485,830,524
Commission, exchange and brokerage 39 3,538,712,150 3,360,679,342
9,547,791,212 9,667,666,456
Total operating income (A) 14,723,613,895 13,674,323,707
Salaries and allowances 43 1,992,049,030 1,853,318,403
Rent, taxes, insurance, electricity, etc. 45 1,015,140,607 917,262,049
Legal expenses 1,293,220 1,553,137
Postage, stamp, telecommunication, etc. 47 181,005,852 175,303,570
Stationery, printing, advertisements, etc. 49 162,614,460 147,315,550
Managing Director's salary and fees 50 10,072,000 10,037,423
Directors' fees 52 2,718,099 3,575,203
Auditors' fees 1,000,000 1,345,000
Depreciation and repair of bank's assets 55 413,975,642 396,062,258
Other expenses 57 1,208,640,252 1,229,422,032
Total operating expenses (B) 4,988,509,163 4,735,194,625
Profit before provision (C=A-B) 9,735,104,731 8,939,129,082
Provision for loans and advances/investments 21.1
General provision (119,210,024) 1,010,610,024
Specific provision 4,974,285,948 3,781,324,521
4,855,075,924 4,791,934,545
Provision for diminution in value of investments 21.7.1 413,060,983 (256,602,166)
Other provisions 21.5 (153,800,000) 305,500,000
Total provision (D) 5,114,336,907 4,840,832,379
Total profit before taxation (C-D) 4,620,767,824 4,098,296,703
Provision for taxation 59
Current 2,200,000,000 2,830,000,000
Deferred (35,000,000) 150,000,000
2,165,000,000 2,980,000,000
Appropriations
Statutory reserve 23 924,153,565 -
924,153,565 -
Retained surplus during the year 1,531,614,259 1,118,296,703
Earnings per share (par value Taka 10) 65 2.33 1.06
Dhaka,
350
a bank with vision

Cash Flow Statement
2018 2017
Note
Taka Taka
A. Cash flows from operating activities:

Interest receipts in cash 28,747,405,196 22,783,920,015
Interest payment (17,216,299,888) (13,026,594,645)
Dividend receipts 130,239,122 194,053,603
Fees and commission receipts in cash 39 3,538,712,150 3,360,679,342
Recoveries on Loans previously written-off 404,812,584 154,213,601
Cash payments to employees (2,002,121,030) (1,826,689,989)
Cash payments to suppliers (140,101,863) (147,281,073)
Income taxes paid (2,172,386,062) (2,630,312,076)
Receipts from other operating activities 61 946,913,502 821,156,590
Payments for other operating activities 63 (2,439,278,046) (2,310,221,404)
Operating profit before changes in operating assets and liabilities (i) 9,797,895,665 7,372,923,964
Increase (decrease) in operating assets and liabilities
Sale of trading securities 1,723,256,168 2,438,255,841
Purchase of trading securities (2,348,147,650) (7,280,686,489)
Loans and advances to customers (35,928,867,124) (43,854,866,880)
Other assets (188,674,412) (771,957,502)
Deposits from other banks 975,842,788 2,217,701,465
Deposits from customers 27,211,136,730 38,964,451,180
Other liabilities 2,264,998,681 2,247,638,030
Cash generated from (used in) operating assets and liabilities (ii) (6,290,454,818) (6,039,464,355)
Net cash flows from operating activities (A=i+ii) 3,507,440,847 1,333,459,609
B. Cash flows from investing activities:
Proceeds from sale of securities 54,654,139,635 85,715,949,901
Payments for purchase of securities (54,337,993,353) (83,124,735,925)
Purchase of fixed assets (374,799,850) (395,373,327)
Sale of fixed assets 3,776,352 7,842,971
Cash generated from (used in) investing activities (B) (54,877,216) 2,203,683,620
C. Cash flows from financing activities:
Receipts from issue of loan capital & debt security 5,000,000,000 -
Payments for redemption of loan capital & debt security (600,000,000) -
Dividends paid - (1,833,900,352)
Payment against lease obligation (2,477,131) (8,204,713)
Receipts from issue of ordinary shares - -
Cash generated from (used in) financing activities (C) 4,397,522,869 (1,842,105,065)
D. Net increase (decrease) in cash and cash equivalents (A+B+C) 7,850,086,500 1,695,038,164
E. Effects of exchange rate changes on cash and cash equivalents 7,264,394 17,226,310
F. Cash and cash equivalents at beginning of the year 28,789,533,363 27,077,268,889
G. Cash and cash equivalents at end of the year (D+E+F) 36,646,884,258 28,789,533,363
Cash and cash equivalents at end of the year represents
Cash in hand (including foreign currencies) 4.1 3,598,790,655 3,010,980,173
(including foreign currencies) 4.1 17,916,575,574 17,968,153,354
Balance with other banks and financial institutions 6 6,257,702,009 4,162,108,796
Treasury bills 9.1.1 1,971,577,720 -
Prize bond 9.1.1 5,138,300 4,341,040
36,646,884,258 28,789,533,363
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Statement of Changes in Equity
Paid up Statutory Revaluation Other Retained

Total
Particulars capital reserve reserve reserves earnings
Taka Taka Taka Taka Taka Taka
9,169,501,760 9,170,000,000 4,534,239,054 247,650,000 2,640,353,198 25,761,744,012
Balance as at 1 January 2018

Changes in accounting policy/ prior year adjustments - - - - - -
Restated balance 9,169,501,760 9,170,000,000 4,534,239,054 247,650,000 2,640,353,198 25,761,744,012
Surplus/deficit on account of revaluation of properties - - - - - -
Surplus/deficit on account of revaluation of investments - - (173,437,152) - - (173,437,152)
Currency translation differences - - - - 7,264,394 7,264,394
Net gains and losses not recognized in the income statement - - (173,437,152) - 7,264,394 (166,172,757)
Net profit for the period - - - - 2,455,767,824 2,455,767,824

Cash dividend - - - - - -
Issue of share capital/ Bonus share 1,375,425,259 - - - (1,375,425,259) -
Appropriation made during the period
Statutory reserve - 924,153,565 - - (924,153,565) -
Balance as at 31 December 2018 10,544,927,020 10,094,153,565 4,360,801,902 247,650,000 2,803,806,592 28,051,339,079
Balance as at 31 December 2017 9,169,501,760 9,170,000,000 4,534,239,054 247,650,000 2,640,353,198 25,761,744,012
a bank with vision
Southeast Bank Limited and its Subsidiaries

Notes to the Financial Statements
As at and for the year ended 31 December 2018
1 Reporting entity
1.1 Status of the Bank
Southeast Bank Limited (the “Bank”) is a scheduled commercial bank in the private sector established under the Bank
Companies Act, 1991 and incorporated in Bangladesh on March 12, 1995 as a public limited company to carry out
banking business in Bangladesh. The registered office of the Bank is located at Eunoos Trade Centre 52-53, Dilkusha
Commercial Area (Level 2,3 &16), Dhaka-1000. The consolidated financial statements of the Bank as at and for the year
ended 31 December 2018 comprise the Bank and its subsidiaries (together referred to as the “Group” and individually
as “Group entities”).
1.2 Principal activities of the Bank
The Bank has 135 (2017:132) branches, with no overseas branch as on 31 December 2018. Out of 135 branches
5 (2017:5) branches run on Islamic banking, the rest 130 (2017:127) branches run on commercial conventional
basis, of which 15 (2017:15) SME/agricultural branches are located across the country. The Bank offers services
for all commercial banking needs of the customers, which includes deposit banking, loans and advances, export
import financing, inland and international remittance facility etc. The Bank is listed with Dhaka Stock Exchange
Limited and Chittagong Stock Exchange Limited as a publicly traded company.
The Bank operates Islamic banking in 5 branches designated for the purpose in complying with the rules of
Islamic Shariah the modus operandi.
The Bank has four subsidiaries, one for its merchant banking operation (for details see note 1.5) and another
three for its remittance business of which one in the United Kingdom (for details see note 1.6), one in Australia
(for details see note 1.7) and other one in South Africa (for details see note 1.8).
1.3 Islamic Banking
The Bank obtained the Islamic Banking branches permission vide letter no. BRPD(P)745(22)/2003-2525 dated
28 June 2003, BRPD(P)745(22)/2004-1801 dated 9 May 2004 and BRPD(P)745(22)/2004-3957 dated 13 October
2004. The Islamic banking branches are governed under the rules and regulations of Bangladesh Bank. Separate
financial statements of Islamic Banking Branches are shown in Annexure-G, G.1 and G.2 .
The financial statements of the Islamic banking branches have also been prepared as per the Bank Companies
Act, 1991 (amended upto 2018), IFRSs and other prevailing laws and regulations applicable in Bangladesh.
A separate balance sheet and profit and loss account are shown in Annexure-G and G.1 and the figures
appearing in the annexure have been converted into relevant heads of financial statements under conventional
banking for consolidation and incorporation in these financial statements.
1.4 Off-Shore Banking
In order to cater the varied financial needs of 100% foreign owned/joint venture industrial units and foreign
entities located in Export Processing Zones of the country, the Bank obtained Off-Shore Banking License on 24
June 2008 vide letter no. BRPD(P-3)744(98)/2008-2213 from Bangladesh Bank. Presently the Bank has 2 (2017:
2) off-shore banking units - one at Dhaka Export Processing Zone and the other at Chittagong Export Processing
Zone. Off-shore banking unit is governed under the rules and regulations of Bangladesh Bank. Separate financial
statements of Off- Shore Banking Units are shown in Annexure-H, H.1 and H.2.
1.5 Southeast Bank Capital Services Limited
Southeast Bank Capital Services Limited is a subsidiary of Southeast Bank Limited which was incorporated on
23 September 2010 and commenced its operation from 1 December 2010. The Bank transferred its Merchant
Banking operation to the newly formed subsidiary company in pursuance of the direction of Bangladesh Bank
vide DOS Circular No. 4 dated 15 June 2010. The principal activities of this subsidiary company is to provide quality
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services to the prospective institutional and individual investors in the capital market. It is decisively providing the
following services:
i) Portfolio Management Services
ii) Underwriting of Share
iii) Issue Management Services etc.
Copy of the audited financial statements is attached in Appendix - A.
1.6 Southeast Financial Services (UK) Ltd
Southeast Financial Services (UK) Ltd (the “Company”) was incorporated as a private limited company with
Companies House of England and Wales under registration no. 7539137 on 22 February 2011. The company is a
wholly owned subsidiary of Southeast Bank Limited. Earlier on 28 October 2010, Southeast Bank Limited got the
approval of Bangladesh Bank to establish a wholly owned subsidiary in the United Kingdom. Southeast Financial
Services (UK) Limited obtained Certificate of Registration for Money Laundering Regulation (MLR) on 12 April 2011
from Her Majesty Customs and Excise. The company was granted registration from Financial Services Authority
(FSA) on 21 July 2011 as Small Payment Institution (SPI) to carry out Money Service Business (MSB) under Payment
Services Regulations 2009. The Company commenced its operation of business on 26 September 2011. The
registered office is located at 22 New Road, London E1 2AX, United Kingdom.
The principal activities of the Company are to carry on the remittance business as well as to undertake and
participate in transactions, activities and operations generally carried on or undertaken by Exchange House.
The subsidiary is registered in the United Kingdom (UK). Audit of financial statements of this subsidiary is not
required as per rules 7 regulations of UK. The financial statements including accountant’s report of this subsidiary
are attached in Appendix - B.
1.7 Southeast Financial Services (Australia) Pty Ltd
Southeast Financial Services (Australia) Pty Limited (the “Company”) was incorporated as a private limited company
with Australian Business Register (ABR) under registration no. 40160673165 on 08 October 2012. The Company
is a wholly owned subsidiary of Southeast Bank Limited.
The subsidiary is registered in Australia. Audit of financial statements of this subsidiary is not required as per the
Corporations Act 2001 of Australia. The financial statements of this subsidiary are attached in Appendix - C.
Board of Directors of the group decided to discontinue the operation of the Southeast Financial Services
(Australia) Pty. Ltd. Therefore the group considered the entity as abandoned.
1.8 Southeast Exchange Company (South Africa) Pty Ltd
Southeast Exchange Company (South Africa) Pty Limited (the “Company”) was incorporated as a private limited
company with The Companies and Intellectual Property Commission under registration no. 2011/008619/07 on
15 April 2011. The Company is a wholly owned subsidiary of Southeast Bank Limited.
The subsidiary is registered in South Africa. The Financial Statements of the Company is audited by G.L. Palmer
and Company. The audited financial statements of this Company are attached in Appendix - D.
2 Basis of preparation
2.1 Statement of compliance
The Financial Reporting Act, 2015 (FRA) has been enacted in 2015. Under the FRA, the Financial Reporting Council
(FRC) is to be formed and it is to issue financial reporting standards for public interest entities such as banks.
Section 38 of the Bank Companies Act, 1991 (amended upto 2013) has been replaced in 2015 by two new sub-
sections to require banks to prepare their financial statements under such financial reporting standards.
The FRC is yet to be formed and as such no financial reporting standards have been issued as per the provisions
of the FRA. Hence, considering Section 69 of FRA, the consolidated financial statements of the Bank and its
subsidiaries and the separate financial statements of the Bank as at and for the year ended 31 December 2018
have been prepared in accordance with International Financial Reporting Standards (IFRSs) and the requirements
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a bank with vision
of the Bank Companies Act, 1991 (amended upto 2018) , the rules and regulations issued by Bangladesh Bank
(BB), the Companies Act, 1994, the Securities and Exchange Rules, 1987, The Income Tax Ordinance, 1984, The
Value Added Tax, 1991. In case any requirement of the Bank Companies Act, 1991 and provisions and circulars
issued by BB differ with those of IFRSs, the requirements of the Bank Companies Act, 1991 and provisions and
circulars issued by BB shall prevail. Material departures from the requirements of IFRSs are as follows:
i) Investment in shares and Securities
IFRS: As per requirements of IFRS 9: classification and measurement of investment in Share and Securities
will depend on how these are managed (the entity’s business model) and their contractual cash flow
characteristics. Based on these factors it would generally fall either under “at fair value through profit and
loss account” or under “at fair value through other comprehensive income” where any change in the fair
value (as measured in accordance with IFRS 13) at the year-end is taken to profit and loss account or other
comprehensive income respectively.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 investments in quoted shares and
unquoted shares are revalued at the year end at market price and as per book value of last audited
balance sheet respectively. Provision should be made for any loss arising from diminution in value of
investment.
ii) Revaluation gain (loss) on Government securities
IFRS: Government securities refer primarily various debt instruments which include both bonds and bills.
As per requirements of IFRS 9 Financial Instruments, bonds can be categorised as “Amortised Cost (AC)” or
“Fair Value Through Profit or Loss (FVTPL)” or “Fair Value through Other Comprehensive Income (FVOCI)”.
Bonds designated as Amortised Cost are measured at amortised cost method and interest income is
recognised through profit and loss account. Any changes in fair value of bonds designated as FVTPL is
recognised in profit and loss account. Any changes in fair value of bonds designated as FVOCI is recognised
in other reserve as a part of equity.
As per requirements of IFRS 9, bills can be categorised either as “Fair Value Through Profit or Loss (FVTPL)”
or “Fair Value through Other Comprehensive Income (FVOCI)”. Any change in fair value of bills is recognised
in profit and loss or other reserve as a part of equity respectively.
Bangladesh Bank: HFT securities are revalued on the basis of mark to market and at year end any
gains on revaluation of securities which have not matured as at the balance sheet date are recognized in
other reserves as a part of equity and any losses on revaluation of securities which have not matured as
at the balance sheet date are charged in the profit and loss account. Interest on HFT securities including
amortization of discount are recognized in the profit and loss account. HTM securities which have not
matured as at the balance sheet date are amortized at the year end and gains on amortization are
recognized in other reserve (loss are recognized in profit and loss account) as a part of equity.
iii) Provision on loans and advances
IFRS: As per IFRS 9 Financial Instruments an entity shall recognize an impairment allowance on loans and
advances based on expected credit losses. At each reporting date, an entity shall measure the impairment
allowance for loans and advances at an amount equal to the lifetime expected credit losses if the credit
risk on these loans and advances has increased significantly since initial recognition, whether assessed on
an individual or collective basis, considering all reasonable information (including that which is forward-
looking). For those loans and advances for which the credit risk has not increased significantly since initial
recognition, at each reporting date, an entity shall measure the impairment allowance at an amount equal
to 12 month expected credit losses that may result from default events on such loans and advances that
are possible within 12 months after reporting date.
Bangladesh Bank: As per BRPD circular no. 16 dated 18 November 2014, BRPD circular no. 14 dated
23 September 2012, BRPD circular no. 19 dated 27 December 2012 and BRPD circular no. 05 dated 29
May 2013 a general provision at 0.25% to 5% under different categories of unclassified loans (good/
standard loans) has to be maintained regardless of objective evidence of impairment. Also provision for
sub-standard loans, doubtful loans and bad/losses has to be provided at 20%, 50% and 100% respectively
for loans and advances depending on the duration of overdue. Again as per BRPD Circular No.10 dated 18
September 2007 and BRPD Circular No. 14 dated September 23, 2012, the Bank is required to maintain
provision @ 1% against Off-Balance Sheet Exposures. Such provision policies are not specifically in line
with those prescribed by IAS 39. BRPD Circular no. 1 dated 20 February, 2018 General Provision for
Housing Finance under Consumer Financing.
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However, if there is any stay order issued by the Honorable High Court Division of the Supreme Court of
Bangladesh against any non-performing loans for reporting such loans as unclassified category, the Bank
maintains at least general provision for such loans under unclassified loan category as per Bangladesh
Bank guidelines. Where Bangladesh Bank suggests any additional provision to be maintained for such
loans, the Bank also complies with that.
iv) Recognition of interest in suspense
IFRS: Loans and advances to customers are generally classified at amortised cost as per IFRS 9 and interest
income is recognised in profit and loss account by using the effective interest rate method to the gross
carrying amount over the term of the loan. Once a loan subsequently become credit-impaired, the entity shall
apply the effective interest rate to the amortised cost of these loans and advances.
Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, once a loan is classified,
interest on such loans is not allowed to be recognized as income, rather the corresponding amount needs
to be credited to an interest in suspense account, which is presented as liability in the balance sheet.
v) Other comprehensive income
IFRS: As per IAS 1 Other Comprehensive Income (OCI) is a component of financial statements or the
elements of OCI are to be included in a Single Comprehensive Income statement.
Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which will strictly be
followed by all banks. The templates of financial statements issued by Bangladesh Bank do not include
Other Comprehensive Income nor are the elements of Other Comprehensive Income allowed to be
included in a single Other Comprehensive Income (OCI) statement. As such the Bank does not prepare
the OCI statement. However, elements of OCI, if any, are shown in the statements of changes in equity.
vi) Financial instruments - presentation and disclosure
In several cases Bangladesh Bank guidelines categories, recognize, measure and present financial
instruments differently from those prescribed in IFRS 9 Financial Instruments. Hence some disclosure and
presentation requirements of IFRS 7 Financial Instruments: Disclosures and IAS 32 Financial Instruments:
Presentation, cannot be made in this financial statements.
vii) Repo and reverse repo transactions
IFRS: As per IFRS 9 when an entity sells a financial asset and simultaneously enters into an agreement to
repurchase the asset (or a similar asset) at a fixed price on a future date (repo or stock lending), the arrangement
is accounted for as a deposit, and the underlying asset continues to be recognized in the entity’s financial
statements. This transaction will be treated as loan and the difference between selling price and repurchase
price will be treated as interest expense.The same rule applies to the opposite side of the transaction (reverse
repo).
Bangladesh Bank: As per BRPD guidelines, when a bank sells a financial asset and simultaneously enters
into an agreement to repurchase the asset (or a similar asset) at a fixed price on a future date (repo or
stock lending), the arrangement is accounted for as a normal sales transactions and the financial assets
are derecognized in the seller’s book and recognized in the buyer’s book.
viii) Financial guarantees
IFRS: As per IFRS 9 Financial Instruments, financial guarantees are contracts that require an entity to
make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails
to make payment when due in accordance with the term of a debt instrument. Financial guarantee
liabilities are recognized initially at their fair value, and the initial fair value is amortized over the life of the
financial guarantee. The financial guarantee liability is subsequently carried at the higher of this amortized
amount and the loss allowance determined as expected credit loss under IFRS 9. Financial guarantees are
prescribed to be included within other liabilities.
Bangladesh Bank: As per BRPD 14, financial guarantees such as L/C, L/G will be treated as Off-Balance
Sheet items. No liability is recognized for the guarantee except the cash margin.
ix) Cash and cash equivalents
IFRS: Cash and cash equivalent items should be reported as cash item as per IAS 7.
Bangladesh Bank: Some cash and cash equivalent items such as ‘money at call and on short notice’,
Treasury bills, Prize bonds are not shown as cash and cash equivalent. Money at call and on short notice
presented on the face of the balance sheet, Treasury bills and Prize bonds are shown in Investments.
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a bank with vision
x) Non-banking assets
IFRS: No indication of non-banking asset is found in any IFRS.
Bangladesh Bank: As per BRPD 14, there must exist a face item named non-banking assets.
xi) Cash flow statement
IFRS: As per IAS 7 Statement of Cash Flows, Cash Flow Statement can be prepared using either in direct
method or in indirect method. The presentation is selected to present these cash flows in a manner that is
most appropriate for the business or industry. The method selected is applied consistently.
Bangladesh Bank: As per BRPD 14, cash flow is the mixture of direct and indirect method.
xii) Balance with Bangladesh Bank: (Cash reserve ratio)
IFRS: Balance with Bangladesh Bank should be treated as other asset as it is not available for use in day
to day operations as per IAS 7.
Bangladesh Bank: Balance with Bangladesh Bank is treated as cash and cash equivalents.
xiii) Presentation of intangible asset
IFRS: Intangible asset must be identified and recognized, and the disclosure must be given as per IAS 38.
Bangladesh Bank: There is no requirement for regulation of intangible assets in BRPD 14.
xiv) Off-balance sheet items
IFRS: There is no concept of off-balance sheet items in any IFRS; hence there is no requirement of
disclosure of off-balance sheet items on the face of the balance sheet.
Bangladesh Bank: As per BRPD 14, off balance sheet items (e.g. Letter of credit, Letter of guarantee etc.)
must be disclosed separately in face of balance sheet.
xv) Disclosure of appropriation of profit
IFRS: There is no requirement to show appropriation of profit in the face of statement of comprehensive
income.
Bangladesh Bank: As per BRPD 14, an appropriation of profit should be disclosed in the face of profit and loss
account.
xvi) Loans and advance net of provision
IFRS: As per IFRS 9, loans and advances/Investments should be presented net of provision.
Bangladesh Bank: As per BRPD 14, provision on loans and advances are presented separately as liability
and cannot be netted off against loans and advances.
xvii) Recovery of written off loans
IFRS: As per IAS 1, an entity shall not offset assets and liabilities or income and expenses, unless required or
permitted by any IFRS. Again recovery of written off loans should be charged to profit & loss account as per
IFRS 15.
Bangladesh Bank: As per BRPD 14, recoveries of amount previously written off should be adjusted with
the specific provision for loans and advances.
(Also refer to note 3.21 Compliance of IFRSs)
2.2 The Bank’s compliance with related pronouncements by Bangladesh Bank
i) Internal control
The objective of internal control is to ensure that management has reasonable assurance that (i) operations
are effective, efficient and aligned with strategy, (ii) financial reporting and management information is
reliable, complete and timely accessible, (iii) the entity is in compliance with applicable laws and regulations
as well as its internal policies and ethical values including sustainability and (iv) assets of the company are
safeguarded and frauds & errors are prevented or detected.
357
Southeast Bank Limited has established an effective internal control system whose primary aim is to
ensure the overall control of risks and provide reasonable assurance that the objectives set by the Bank
will be met. It has designed to develop a high level compliance culture among the personnel of the Bank,
establish efficient and qualified operating model in the Bank, ensure reliability of internal and external
information including accounting and financial information, secure the Bank’s operations and assets, and
comply with laws, regulatory requirements and internal policies.
The Board of Directors of Southeast Bank Limited, through its Audit Committee, periodically reviews
the effectiveness of Bank’s internal control system covering all the material controls, including financial,
operational and compliance controls, risk management systems, the adequacy of resources, qualifications
and experience of staff of the accounting and financial reporting functions. Board Audit Committee reviews
the actions taken on internal control issues identified by the internal and external auditors and regulatory
authorities. It has active oversight on the internal audit’s independence, scope of work and resources
and it also reviews the functions of Internal Control & Compliance Division of Head Office, particularly the
scope of the annual audit plan and frequency of the internal audit activities.
ii) Risk management
Banking business faces uncertainties in its operating environment, which, if not managed and mitigated,
would not only disrupt the achievement of its strategic and operational objectives, but may also cause
extensive financial and reputational loss. Effective risk management enables Banks to take better and
informed decisions that substantially improve the probability of achieving their strategic and operational
objectives. In this connection, the Bank has come forward to establish a general framework to manage the
risk factors considering Bangladesh Bank’s guidelines.
As one of the leading Banks in Bangladesh, Southeast Bank Limited (SEBL) has established approved
policies in compliance with central bank’s guidelines covering major risk areas such as: (a) Credit (b)
Foreign Exchange (c) Asset Liability Management (d) Money Laundering Prevention (e) Internal Control &
Compliance (f) Information and Communication Technology.
For strengthening and updating risk management system, the Bank has developed a manual for core risks
assessment in light of the Bangladesh Bank’s Risk Management Guidelines. The purpose of this assessment
is to inform management about the loopholes of full fledged implementation of core risks management,
risk management culture, restructure minimum standard and assist in the ongoing improvement.
Risk Management Reports (RMR) are being prepared on monthly, quarterly and semiannually basis and is
reviewed in the monthly risk management meeting to have management opinion on the issues identified
in RMR.
iii) Internal audit
Internal audit is the continuous and systematic process of examining and reporting on the activities of
an organization undertaken by the specially assigned staff(s). Internal auditor works as the Eyes & Ears
of the management. It may therefore be used to bridge the gap between management & shop floor. It
can assure the management that the internal controls are adequate and in operations, the policies and
systems laid down are being adhered to and accounting records provided by all levels are correct.
Internal audit mechanism is used as an important element to ensure good governance of SEBL. Internal
audit activity of SEBL is effective and it provides senior management with a number of important services.
These include detecting and preventing errors and fraud, testing internal control and monitoring
compliance with own policies & procedures, applicable rules & regulations, instructions/ guidelines of
regulatory authority etc.
During the year 2018, Audit & Inspection Unit of ICCD conducted inspection on most of the branches and
some of the important divisions of head office of the Bank as per plan and submitted reports presenting
the findings of the audits/ inspections to the appropriate authorities. The bank conducted the risk grading
of branches as per Bangladesh Bank guideline. Necessary control measures and corrective actions have
been taken on the suggestions or observations made in these reports. The key points of the Reports
have also been discussed in the meetings of the Audit Committee of the Board and necessary steps have
been taken according to the decision of the said Committee for correct functioning of Internal Controls &
Compliance of the Bank.
iv) Fraud and forgeries
Fraud can happen anywhere. Though, only relatively few major frauds are picked up by the media, huge
sums are lost by all kinds of businesses against huge number of smaller frauds. The risks of fraud is
increasing day by day as a result of growing globalization, more competitive markets, rapid developments
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a bank with vision
in technology, periods of economic difficulty, etc. Banks by virtue of the nature of activities undertaken
and its operating environment are vulnerable to frauds, which take place when aggressive business
strategy and process for quick growth is adopted without adequate/appropriate internal controls or non-
adhering of operating standards/ controls. In the recent past, incidence of frauds in the Banking industry
has increased which calls for concerted steps in investigating the frauds and identifying the fraudsters for
eventual criminal prosecution and internal punitive action.
It will never be possible to eliminate all frauds and no system is completely fraud proof, since many
fraudsters are able to bypass control systems put in place. SEBL pays attention on anti-fraud internal
controls for prevention of fraud and forgery. SEBL assesses/evaluates the effectiveness of its anti-fraud
internal control measures on quarterly basis as per the items/areas mentioned in the prescribed checklist
of Bangladesh Bank.
2.3 Basis of measurement
The financial statements of the Bank have been prepared on the historical cost basis except for the following:
 Government Treasury Bills and Bonds designated as ‘Held for Trading (HFT)’ at present value using marking
to market concept with gain crediting revaluation reserve
 Government Treasury Bills and Bonds designated as ‘Held to Maturity (HTM)’ and remeasured Government
Treasury Bond at present value using amortisation concept
 Investment in shares of listed companies
 Land and buildings are measured at fair value
2.4 Functional and presentation currency
These financial statements are presented in Bangladesh Taka (Taka/Tk) which is the Bank’s functional currency.
Except as otherwise indicated, financial information presented in Taka has been rounded to the nearest integer.
2.5 Use of estimates and judgments
The preparation of these financial statements in conformity with Bangladesh Bank circulars and IFRSs requires
management to make judgments, estimates and assumptions that affect the application of accounting policies
and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these
estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in any future periods affected.
Information about significant areas of estimation, uncertainty and critical judgments in applying accounting
policies that have the most significant effect in the year ended 31 December 2019 is included in the following
notes:
a) Note 3.3.3 : Rate of provision for loans, advances/investments
b) Note 3.3.4 : Useful lives of depreciable assets
c) Note 21.3.2 : Provision for deferred tax
d) Note 24 : Assets revaluation reserve
2.6 Reporting period
These financial statements cover one calendar year from 1 January 2018 to 31 December 2018.
2.7 Cash flow statement
Cash flow statement has been prepared in accordance with the BRPD Circular No. 14 dated 25 June 2003 issued
by the Banking Regulation & Policy Department of Bangladesh Bank.
2.8 Statement of changes in equity
The Statement of changes in equity reflects information about the increase or decrease in net assets or wealth.
2.9 Liquidity statements
The consolidated and separate liquidity statement of assets and liabilities as on the reporting date has been
prepared on residual maturity term which has been given in the statement.
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Consolidated liquidity statements of the Group and the separate liquidity statements of the Bank have been
furnished in Annexure-B and Annexure-B.1 respectively..
3 Significant accounting policies
The accounting policy set out below have applied consistently to all periods presented in these consolidated
financial statements of the Group and those of the Bank, and have been applied consistently by the group entities.
3.1 Basis of consolidation
The consolidated financial statements include the financial statements of Southeast Bank Limited and its four
subsidiaries Southeast Bank Capital Services Limited, Southeast Financial Services (UK) Ltd, Southeast Financial
Services (Australia) Pty Ltd and Southeast Exchange Company (South Africa) Pty Ltd made up to the end of the
financial year.
3.1.1 Business combinations
Business combinations are accounted for using the acquisition method as at the acquisition date; i.e. when
control is transferred to the Group. Control is the power to govern the financial and operating policies of an
entity so as to obtain benefits from its activities. In assessing control, the Group takes into consideration potential
voting rights that are currently exercisable.
The Group measures goodwill at the acquisition date as:
 the fair value of the consideration transferred; plus
 the recognised amount of any non-controlling interests in the acquiree; plus
 if the business combination is achieved in stages, the fair value of the pre-existing equity interest in the
acquiree; less
 the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed.
When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss.
The consideration transferred does not include amounts related to the settlement of pre-existing relationships.
Such amounts are generally recognised in profit or loss.
Transactions costs, other than those associated with the issue of debt or equity securities, that the Group incurs
in connection with a business combination are expensed as incurred.
3.1.2 Non-controlling interest
For each business combination, the Group elects to measure any non-controlling interests in the acquiree either:
 at fair value; or
 at their proportionate share of the acquiree’s identifiable net assets, which are generally at fair value.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as
transactions with owners in their capacity as owners. Adjustments to non-controlling interests are based on a
proportionate amount of the net assets of the subsidiary.
Subsidiaries are the entities controlled by the Group. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control ceases.
3.1.3 Transactions eliminated on consolidation
Intra-group balances, and income and expenses (except for foreign currency transaction gains or losses) 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 the extent that there is no evidence of
impairment.
3.2 Foreign currency
3.2.1 Foreign currency transactions
Transactions in foreign currencies are translated into the respective functional currency of the operation at the
spot exchange rate at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the
functional currency at the spot exchange rate at that date. Non-monetary assets and liabilities denominated
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in foreign currencies that are measured at fair value are retranslated into the functional currency at the spot
exchange rate at the date that the fair value was determined. Non-monetary assets and liabilities that are
measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of
transaction.
Foreign currency differences arising on translation are recognised in profit or loss, except for differences arising
on translation of equity investments in respect of which an election has been made to present subsequent
changes in fair value in equity.
3.2.2 Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition,
are translated into Taka at spot exchange rates at the reporting date. The income and expenses of foreign
operations, are translated into Taka at average exchange rates.
Foreign currency differences are presented in the foreign currency translation reserve in equity. However, if the
operation is a non-wholly-owned subsidiary, then the relevant proportionate share of the translation difference
is allocated to the non-controlling interest.
When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned
nor likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are
considered to form part of the net investment in the foreign operation and presented in the translation reserve
in equity.
3.3 Assets and basis of their valuation
3.3.1 Cash and cash equivalents
Cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh Bank and
its agent bank, balance with other banks and financial institutions, money at call and on short notice, investments
in treasury bills and prize bond.
3.3.2 Investments
All investment securities are initially recognised at cost, including acquisition charges associated with the
investment. Premiums are amortised and discounts are accredited.
Held to Maturity
Investments which have, ‘fixed or determinable payments’ and are intended to be held to maturity are classified
as ‘Held to Maturity’.
Held for Trading
Investment classified in this category are acquired principally for the purpose of selling or repurchasing in short
trading or if designated as such by the management.
Re-measured bond
As per DOS circular letter no. 2 dated 19 January 2012, Treasury bond held in HFT category by the Primary Dealer
(PD) may be re-measured at amortized cost instead of fair value.
Revaluation
As per the DOS Circular letter no. 5 dated 26 May 2008, HFT securities are revaluated each week using Marking
to Market concept and HTM securities are amortised once a year according to Bangladesh Bank guidelines.
Value of investments has been shown as under:
Government Treasury Bills and Bonds (HFT) At present value (using marking to market concept)
Government Treasury Bills and Bonds (HTM) At present value (using amortisation concept)
Re-measured Government Treasury Bonds At present value (using amortisation concept)
Bangladesh Government Islamic Bond At cost
Prize Bonds At cost
At cost or net book value of the last audited balance sheet
Unquoted shares
whichever is lower
At cost or market value whichever is lower at balance sheet
Quoted shares
date
Details are shown in notes 8 and 9.
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3.3.3 Loans and advances/ investments and provisions for loans and advances/ investments
a) Loans and advances of conventional Banking/Investments of Islamic Banking branches are stated in the
Balance Sheet on gross value.
b) Provision for loans and advances is made on the basis of periodical review by the management and of
instructions contained in Bangladesh Bank BRPD Circular Nos. 14 and 15 of 23 September 2012, BRPD
Circular No. 19 of 27 December 2012, BRPD Circular No. 05 of 29 May 2013, BRPD Circular No. 12 of 20
August 2017 and BRPD circular No. 15 of 27 September 2017. BRPD Circular no. 1 dated 20 February, 2018
General Provision for Housing Finance under Consumer Financing. The rates of provision for different
classifications are given below:
Particulars Rate
General provision on:
All unclassified loans and advances/investments except followings 1%
Small and medium enterprise financing 0.25%
Housing finance (HF) and loans for professionals (LP) to set up business under
consumer financing scheme 1%-2%
Consumer financing 2%-5%
Loan to Brokerage Houses (BHs)/Merchant Banks (MBs)/ Sponsor Directors (SDs)
against shares 2%
Special mention account (SMA) 0.25%-5%
Specific provision on:
Substandard loans and advances/investments 20%
Doubtful loans and advances/investments 50%
Bad/loss loans and advances/investments 100%
Provisions for Short term Agricultural and Micro-Credits
All credits except 'Bad/Loss' 1%-5%
(i.e. Doubtful, Substandard, irregular and regular credit)
Bad/Loss 100%
c) Loans and advances are written off to the extent that
i) there is no realistic prospect of recovery, and
ii) against which legal cases are filed and classified as bad/loss as per guidelines of Bangladesh Bank.
These write off however will not undermine/affect the claim amount against the borrower. Detailed
memorandum records for all such write off accounts are maintained and followed up.
d) Amounts receivable on credit cards are included in advances to customers at the amounts expected to be
recovered.
3.3.4 Fixed assets and depreciation
Recognition and measurement
Items of fixed assets excluding land are measured at cost/revaluation less accumulated depreciation and
accumulated impairment losses, if any. Land is measured at revaluation.
Cost includes expenditure that are directly attributable to the acquisition of asset and bringing to the location and
condition necessary for it to be capable of operating in the intended manner.
When parts of an item of fixed asset have different useful lives, they are accounted for as separate items (major
components) of fixed assets.
The gain or loss on disposal of an item of fixed asset is determined by comparing the proceeds from disposal with
the carrying amount of the item of fixed asset, and is recognised in other income/other expenses in profit or loss.
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Subsequent costs
The cost of replacing a component of an item of fixed assets is 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 Group and its cost
can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-to-day
servicing of fixed assets are recognised in profit or loss as incurred.
Depreciation
Depreciation is recognised in profit or loss on reducing balance method, except motor vehicles which are
depreciated on straight line basis, over the estimated useful lives of each part of an item of fixed assets since
this most closely reflects the expected pattern of consumption of the future economic benefits embodied in
the asset. In case of acquisition of fixed assets, depreciation is charged from the month of acquisition, whereas
depreciation on disposed off fixed assets is charged up to the month prior to the disposal. Asset category-wise
depreciation rates for the current and comparative years are as follows:
Category of assets Rate of depreciation

Land Nil
Buildings 4%
Furniture and fixtures 10%
Office appliances 20%
Professional and reference books 30%
Electrical appliances 20%
Computer 20%
ATM Booth 20%
Motor vehicles 20%
Depreciation methods, useful lives and residual values are reassessed at each reporting date and adjusted, if
appropriate.
3.3.5 Leased assets – lessee
Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified
as finance leases. Upon initial recognition the leased asset is measured at an amount equal to the lower of its
fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is
accounted for in accordance with the accounting policy applicable to that asset.
Other leases are operating leases and are not recognised in the Group’s Balance Sheet.
3.4 Liabilities and basis of their valuation
3.4.1 Borrowings from other banks, financial institutions and agents
Borrowings from other banks, financial institutions and agents includes refinance from Bangladesh Bank against
agro-based credit, SME Loan etc., interest-bearing borrowings against securities from Bangladesh Bank and call
borrowing from other banks. These items are brought to financial statements at the gross value of the outstanding
balance. Details are shown in notes 16 and 17.
3.4.2 Deposits and other accounts
Deposits and other accounts include non interest-bearing current deposit redeemable at call, interest bearing
on demand and short-term deposits, savings deposit and fixed deposit. These items are brought to financial
statements at the gross value of the outstanding balance. Details are shown in notes 18 and 19.
3.4.3 Other liabilities
Other liabilities comprise items such as provision for loans and advances/investments, provision for taxation,
interest payable, interest suspense, accrued expenses, obligation under finance lease etc. Other liabilities are
recognised in the balance sheet according to the guidelines of Bangladesh Bank, Income Tax Ordinance, 1984
and internal policy of the Bank. Details are shown in notes 20 and 21.
3.5 Capital/Shareholders’ equity
3.5.1 Authorised capital
Authorised capital is the maximum amount of share capital that the Bank is authorised by its Memorandum and
Articles of Association.
Details are shown in note 22.1
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3.5.2 Paid up capital

Paid up capital represents total amount of shareholder capital that has been paid in full by the ordinary
shareholders. Holders of ordinary shares are entitled to receive dividends as declared from time to time and are
entitled to vote at shareholders’ meetings. In the event of a winding-up of the Bank, ordinary shareholders rank
after all other shareholders and creditors and are fully entitled to any residual proceeds of liquidation. Details are
shown in note 22.2.
3.5.3 Statutory reserve
Statutory reserve has been maintained @ 20% of profit before tax in accordance with provisions of
section 24 of the Bank Companies Act 1991, until such reserve equals to its paid up capital together with
the share premium.
3.5.4 Revaluation reserve
Revaluation reserve arises from the revaluation of land and buildings as well as the revaluation of Treasury
bills and bonds (HFT & HTM) in accordance with the DOS circular no. 5 dated 26 May 2008 and DOS(SR)
1153/120/2010 dated 8 December 2010. The tax effects on revaluation gain are measured and recognised in the
financial statements as per IAS 12: Income Taxes.
Details are shown in note 24.
3.6 Contingent liabilities
A contingent liability is -
A possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of the Bank; or
A present obligation that arises from past events but is not recognised because:
- it is not probable that an outflow of resources embodying economic benefits will be required to settle the
obligation; or
- the amount of the obligation cannot be measured with sufficient reliability.

Contingent liabilities are not recognised but disclosed in the financial statements unless the possibility of an
outflow of resources embodying economic benefits is reliably estimated.
Contingent assets are not recognised in the financial statements as this may result in the recognition of income
which may never be realised.
3.7 Revenue recognition
3.7.1 Interest income (Conventional Banking)
Interest on loans and advances is calculated on daily product basis and accrued at the end of each month, but
charged to customers’ accounts on quarterly basis. Interest accrued on loans and advances fall under Sub Standards
(SS) and Doubtful (DF) category are credited to interest suspense account instead of income account. Interest is not
charged on bad and loss loans as per guideline of Bangladesh Bank. Such interest is kept in separate memorandum
account. Interest on classified loans and advances is accounted for on a cash receipt basis. Interest income from
fixed deposit with other banks and call lending to other banks is recognized on accrual basis.
3.7.2 Profit on investment (Islamic Banking)
Mark-up on investment is taken into income account proportionately from profit receivable account. Overdue
charge/compensation on classified investments is transferred to profit suspense account instead of income
account.
3.7.3 Investment income
Income on investments is recognised on accrual basis. Investment income includes discount on treasury bills and
interest on treasury bonds. Capital gain on investments in shares is also included in investment income. Capital
gain is recognised when it is realised.
3.7.4 Fees and commission income
The Bank earns fees and commissions from diverse range of services provided to its customers. Fees and
commission income is recognised on a realisation basis. Commission charged to customers on letters of credit
and letters of guarantee are credited to income at the time of effecting the transactions.
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3.8 Interest paid on borrowing and other deposits (Conventional Banking)

Interest paid and other expenses are recognised on accrual basis.
3.9 Profit shared on deposits (Islamic Banking)
Profit shared to mudaraba deposits is recognised on accrual basis as per provisional rate.
3.10 Dividends
Dividend income is recognised when the right to receive income is established. Usually this is the ex-dividend
date for equity securities. Dividends are presented in investment income.
3.11 Lease payments
Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of
the lease.
Lease payments made under finance leases are apportioned between the finance expense and the reduction of
the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce
a constant periodic rate of interest on the remaining balance of the liability.
3.12 Employee benefits
3.12.1 Provident Fund
Provident fund benefits are given to the staff of the Bank in accordance with the registered provident fund rules.
The commissioner of Income Tax, Large Tax Payers Unit (LTU), Dhaka has approved the Provident Fund as a
recognized fund within the meaning of section 2(52) read with the provisions of part - B of the First Schedule of
Income Tax Ordinance 1984. The fund is operated by a Board of Trustees consisting of 6 (six) members of the
Bank. All confirmed employees of the Bank are contributing 10% of their basic salary as subscription of the fund.
The Bank also contributes equal amount to the fund. Contributions made by the Bank are charged as expense
and the bank bears no further liability. Interest earned from the investments is credited to the members’ account
on half yearly basis. Members are eligible to get both the contribution after 5 (five) years of continuous service
from the date of their membership.
3.12.2 Gratuity Fund
Gratuity fund benefits are given to the staff of the Bank in accordance with the approved gratuity fund rules.
National Board of Revenue has approved the gratuity fund as a recognized gratuity fund with effect from
December 2001. The fund is operated by a Board of Trustees consisting of 7 (seven) members of the Bank.
Employees are entitled to gratuity benefit after completion of minimum 7 (seven) years of service in the Bank.
The amount payable at the date of balance sheet is recognised and accounted for as at that date based on actual
rate. The gratuity is calculated on the basis of last basic pay and is payable at the rate of one month’s basic pay for
every completed year of service. The amount so calculated are transferred to the fund and charged to expenses
of the Bank.
3.12.3 Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the
related service is provided. A liability is recognised for the amount expected to be paid under short-term cash
bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a
result of past service provided by the employee and the obligation can be estimated reliably.
3.12.4 Workers’ Profit Participation Fund (WPPF)
As per Bangladesh Labour Act 2006 and SRO no. 336/Law/2010, all companies fall within the scope of WPPF
are required to provide 5% of its profit before charging such expense to their eligible employees within the
stipulated time. The Bank obtained opinion from its legal advisor regarding this issue. The legal advisor opined
that, “Southeast Bank Limited being governed by Banking Companies Act, 1991 is obliged to follow the provisions
of Banking Companies Act, 1991, and Banking Companies Act, 1991 being a special law, provisions of this Act shall
prevail over Bangladesh Labour Laws, 2006 (amended in 2013) which is a general law. Thus, we take the view
that the Bank is not bound to form a WPPF under Bangladesh Labour Laws, 2006 (amended in 2013)”. Consistent
with the industry practice and in accordance with the legal opinion and the Bank Company Act, 1991 (amended
in 2013), no provision has been made for WPPF.
3.13 Provisions and accrued expenses
In compliance with IAS-37, provisions and accrued expenses are recognized in the consolidated and separate
financial statements when the Group/Bank has a legal or constructive obligation as a result of past event, it is
probable 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 obligation.
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3.14 Provision for Off-Balance Sheet Exposures

In compliance with Bangladesh Bank guidelines off-balance sheet items are disclosed under contingent liabilities.
As per BRPD Circular No.10 dated 18 September 2007 and BRPD Circular No. 14 dated 23 September 2012 and
BRPD Circular no. 13 dated 18 October 2018, the Bank is required to maintain provision @ 1% against off-balance
sheet exposures. Details are shown in note 21.5.1 (C).
3.15 Provision for Nostro Accounts
According to guideline of Foreign Exchange Policy Department of Bangladesh Bank, Circular No. FEOD
(FEMO)/01/2005-677 dated 13 September 2005, Bank is not required to make provision regarding the
un-reconciled debit balance as at Balance Sheet date since there was no debit entries more than three
month.
3.16 Tax expense
Tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss
except to the extent that it relates to items recognised directly in equity.
3.16.1 Current tax
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates
enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous
years.
Details are shown in note 21.3.1.
3.16.2 Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not
recognised for the following temporary differences:
 temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit or loss;
 temporary differences related to investments in subsidiaries to the extent that it is probable that they will
not reverse in the foreseeable future; and
 temporary differences arising on the initial recognition of goodwill.

Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they
reverse, based on the laws that have been enacted or substantively enacted by the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
against current tax assets, and they relate to income taxes levied by the same tax authority on the same taxable
entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their
tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences to the
extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred
tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that
the related tax benefit will be realised.
Deferred tax relating to unrealised surplus on revaluation of held to maturity (HTM) securities and held for trading
(HFT) securities and land and buildings are recognised directly in revaluation reserve as a part of equity and is
subsequently recognised in profit and loss account on maturity of the security and disposal of land and buildings.
Details are shown in note 21.3.2.
3.16.3 Tax exposures
In determining the amount of current and deferred tax, the Bank takes into account the impact of uncertain
tax positions and whether additional taxes and interest may be due. This assessment relies on estimates and
assumptions and may involve a series of judgments about future events. New information may become available
that causes the Bank to change its judgment regarding the adequacy of existing tax liabilities; such changes to tax
liabilities will impact tax expense in the period that such a determination is made.
3.17 Impairment of non-financial assets
The carrying amounts of the Group’s and the Bank’s non-financial assets, other than deferred tax assets, are
reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication
exists, then the asset’s recoverable amount is estimated. An impairment loss is recognised if the carrying amount
of an asset or its Cash Generating Unit (CGU) exceeds its estimated recoverable amount.
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The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset or CGU.
For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the
smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash
inflows of other assets or CGU.
Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated
first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs) and then to reduce the
carrying amount of the other assets in the CGU (group of CGUs) on a pro rata basis.
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the
loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates
used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s
carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or
amortisation, if no impairment loss had been recognised.
3.18 Earnings per share
The Group and the Bank present basic and diluted earnings per share (EPS) data for its ordinary shares. Basic
EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Group/ Bank by the
weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by
adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary
shares outstanding for the effects of all dilutive potential ordinary shares, which comprise share options granted
to employees.
3.19 Reconciliation of inter-bank/inter-branch account
Books of accounts with regard to inter-bank (in Bangladesh and outside Bangladesh) are reconciled regularly and
there are no material differences which may affect the financial statements significantly.
Un-reconciled entries in case of inter-branch transactions as at the reporting date are not material.
3.20 Risk management
Effective risk management is an essential element of our operations and strategy. The Bank monitors risk at all
levels throughout its operations and has established units to manage various types of risk. Our risk management
framework is designed to identify, manage and mitigate the risk of any failure to achieve business objectives.
The risk management of the Bank covers following six core risk areas:
i) Credit Risk
ii) Foreign Exchange Risk
iii) Asset Liability Management Risk
iv) Money Laundering Risk
v) Internal Control & Compliance Risk; and
vi) Information and Communication Technology Risk

The Bank’s risk management policy and process are composed with all the structures, policies, process and
strategies in line with the guidelines of central bank and other regularity authorities. The Bank endeavors to
maximize profits through the development of an integrated risk management system.
3.20.1 Credit risk
Credit risk is the possibility that a borrower or counter party will fail to repay the borrowed money as per the
agreed terms and conditions. Managing Credit risk of the Bank in an efficient manner has become one of the
most crucial tasks for the management. Given the fast changing, dynamic global economy, implementation of
Basel-III and the increasing pressure of globalization and liberalization it is essential that banks have robust credit
risk management policies and procedures that are sensitive and responsive to these changes.
A thorough assessment & due diligence are done before sanctioning any credit facility at Credit Risk Management
Division (CRM) of the Bank. The risk assessment includes borrower risk analysis, financial analysis, industry
analysis, historical performance of the customer, security of the proposed credit facilities and various critical
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risk factors. The assessment process starts at Branch Credit department by the Officer and ends at Credit Risk
Management Division (CRM) in Head Office where it is approved / declined by the competent authority. Credit
approval authority has been partially delegated to the individual executives. Proposal beyond their delegation
are approved / declined by the Board / Executive Committee (EC) of the Board.
3.20.2 Foreign Exchange Risk
Foreign exchange risk is the exposure of an institution to the potential impact of movements in foreign exchange
rates. The risk is that adverse fluctuations in exchange rates may result in a loss in earnings. As per the guidelines
of Bangladesh Bank, Southeast Bank Limited has developed a detailed Foreign Exchange Risk Management policy
to minimize different types of risks associated with foreign exchange transactions. The Bank has also developed
different strategies to handle foreign exchange risk by setting different types of limits and risk parameters to
measure and monitor foreign exchange risk exposure of the Bank.
The Foreign Exchange Desk of Treasury Division is involved in foreign exchange dealing activities with different
counterparty banks. The Treasury Back Office is engaged in transfer of funds and passing of the transaction
entries in the books of accounts; the Mid Office is responsible for verification of the deals. All foreign exchange
assets and liabilities are revalued at market rate as per the directive of Bangladesh Bank. All nostro accounts are
reconciled on a monthly basis and outstanding entries beyond 30 days are reviewed by the management for its
settlement.
3.20.3 Asset Liability Management
Banks are exposed to the several risks such as Liquidity Risk, Interest Rate Risk, Foreign Exchange Risk, Credit Risk
and Operational Risk etc. Monitoring and controlling these risks are vital to the survival of a financial institution.
Asset-Liability Management is a tool to oversee whether different balance sheet risks are properly identified,
appropriate policies and procedures are well established to control and limit these risks.
Asset-Liability Committee (ALCO) reviews country’s overall economic position, the Bank’s liquidity position, key
performance ratios, interest rate risk, deposit and advance growth, cost of deposit & yield on advances, deposit
& lending pricing strategy and different forecasted balance sheet risks of the Bank.
3.20.4 Money Laundering Risk
Money laundering is the generic term used to describe the process by which criminals disguise the original
ownership and control the proceeds of criminal conduct by making such proceeds appear to have derived from
a legitimate source. If money laundering is done successfully, it allows the criminals to maintain control over
their proceeds and ultimately to provide a legitimate cover for their source of income. Drug traffickers, the
terrorists, the organized criminals, the insider dealer, the tax evaders as well as many others who intend to avoid
the attention from the authorities of their sudden wealth brought from illegal activities take the help of money
laundering. By engaging in this type of activity it is hoped to place the proceeds beyond the reach of any asset
forfeiture laws.
Southeast Bank Limited (SEBL) has implemented an enterprise-wide AML (Anti-Money Laundering) and CFT
(Combating the Financing of Terrorism) compliance program, which covers all the activities of the Bank and is
reasonably designed to comply with applicable laws and regulations. It is the policy of SEBL to take all reasonable
and appropriate steps to prevent persons engaged in money laundering, fraud, or other financial crime, including
the financing of terrorists or terrorist operations, from utilizing SEBL products and services. SEBL makes every
effort to remain in full compliance with all applicable AML and CFT laws, rules and standards in the jurisdictions
in which it does business.
In order to facilitate compliance with AML and CFT requirements, SEBL has appointed one of its Senior Executives
as the CAMLCO (Chief Anti-Money Laundering Compliance Officer) and a team of employees with experience on
AML and CFT requirements under law to oversee the Bank’s AML and CFT program. SEBL has developed and
implemented written AML and CFT policies, procedures, internal controls and systems, which include (but not
limited to) a customer identification program and procedures; procedures to collect and refresh, as appropriate,
customer due diligence information; processes to assess risk; processes and systems to monitor customer
transactions and activity; processes and systems to identify and report suspicious activity; and, processes to
keep required records. SEBL educates its all employees on AML and CFT requirements and activities and also
subjects its AML and CFT program to regular independent testing. SEBL cooperates fully with law enforcement
and regulatory investigations and inquiries in identifying the criminals involve in Money Laundering and Terrorist
Activities/Financing.
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3.20.5 Internal Control & Compliance Risk

Internal control is fundamental to the successful operation and day-to-day running of a business and it assists the
bank in achieving its business objectives. It encompasses all controls incorporated into the strategic, governance
and management processes, covering the bank’s entire range of activities and operations, and not just those
directly related to financial operations and reporting. Its scope is not confined to those aspects of a business that
could broadly be defined as compliance matters, but extends also to the performance aspects of a business.
SEBL has established a System of Internal Control, which is designed to manage all the risks of failure to a
reasonable level, achieve aims and objectives/goals of the Bank and this System provides reasonable assurance
of effective & efficient operations covering all controls including financial & operational controls, reliability of
the financial information, compliance with applicable laws & regulations, adherence to management policies,
safeguarding of Bank’s Assets, prevention & detection of fraud & errors, and accuracy & completeness of the
accounting records.
The Board of Directors of SEBL regularly reviews the effectiveness of internal control process through its Audit
Committee and the Audit Committee plays an effective role amongst the Board of Directors, Management,
Shareholders, Depositors and develops an efficient, powerful and a safe banking system. The committee also
performs a very important role for publishing Bank’s financial statements, developing an appropriate internal
control system and maintains an effective communication with internal and external auditors. It significantly
contributes in controlling and monitoring various risks factors that arise from the business activities of the Bank.
Board Audit Committee reviews the actions taken on internal control issues identified in the reports prepared
by the internal & external auditors and regulatory authorities. It has active oversight on the internal audit’s
independence, scope of work and resources and it also reviews the functions of Internal Control & Compliance
Division of Head Office, particularly the scope of the annual audit plan and frequency of the internal audit
activities.
3.20.6 Information and communication technology
The Bank has Centralized Core Banking Software (CBS)and providing online banking services to its clients through
136 Branches across the country. The Bank is also offering 24/7 banking services through its different delivery
channels, like Internet Banking, ATM and Mobile Financial Service (MFS). Besides, the Bank has introduced
Recycler ATM in the brand name of “SEBL Instant Banking Service.” Through this service, customers are able to
deposit cash on a real time basis other than cash withdrawal facility. SMS and E-Mail Alert services are available
for any debit/credit transaction through online and Internet Banking or using Bank’s Debit / Credit Card as a
deterrent against fraudulent transaction attempts. The Bank has established its Far DC (Data Center) at Jessore
as it falls under different seismic zone as part of its business continuity plan (BCP) as well as for compliance of
ICT Security Guideline of Bangladesh Bank. Data synchronization in near real time basis has been established
through fiber optic cables from main DC to near DC (Disaster Recovery Site at Uttara) and again main DC to far
DC at Jessore to ensure availability of data in any catastrophic situation.
The Bank has further reviewed its ICT Security and ICT Risk Management Policies and related internal processes
for strengthening security of information assets from internal and external threats. Gradual implementation
of the different policies is being carried out. Several sessions were conductedon ICT Security and Risk for the
employees of the Bank to build awareness and minimize ICT related risks in banking operation.
3.20.7 Environmental Risk Management (ERM)
Environmental and Social risk is assessed by E&S due diligence (ESDD) checklists. It is a set of questionnaire
provided by Bangladesh Bank. The purpose of the E&S due diligence is to review any potential E&S risks
associated with the business activities of a potential client ensure that the transaction does not carry
E&S risks, which could present a potential liability/risk to the Bank. The ESDD checklists (both generic and sector
specific) will auto generate the E&S risk ratings – high, medium and low based on the responses provided to the
questions in the checklist.
Potential E&S risks may not seem significant or relevant at the time of approval of a financial transaction,
but may become so during execution, for instance as a result of higher regulatory standards and
increased levels of enforcement. In other cases, E&S risks, such as spills or explosions, may seem unlikely to
occur, but when they do, the E&S impact is potentially extremely high. Therefore, to identify Environment and
Social (E&S) risks along with appropriate risk mitigation measures, Environment & Social Risks Management must
be integrated with the Credit Risk Management of the bank.
369
3.21 Compliance of International Financial Reporting Standards (IFRSs)
Name of the standards Ref. Status

First-time Adoption of International Financial Reporting Standards IFRS-1 Not applicable
Share-based Payment IFRS-2 Not applicable
Business Combinations IFRS-3 Applied
Insurance Contracts IFRS-4 Not applicable
Non-current Assets Held for Sale and Discontinued Operations IFRS-5 Applied
Exploration for and Evaluation of Mineral Resources IFRS-6 Not applicable
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 Not applicable
Disclosure of Interests in other Entities IFRS-12 Applied
Fair Value Measurement IFRS-13 * Applied
Regulatory Deferral Accounts IFRS-14 Not applicable
Revenue From Contracts with Customers IFRS-15 Applied
Presentation of Financial Statements IAS-1 * Applied
Inventories IAS-2 Not Applicable
Statement of Cash Flows IAS-7 * Applied
Accounting Policies, Changes in Accounting Estimates and Errors IAS-8 Applied
Events after the Reporting Period IAS-10 Applied
Income Taxes IAS-12 Applied
Property, Plant and Equipment IAS-16 Applied
Leases IAS-17 Applied
Employee Benefits IAS-19 Applied
Accounting for Government Grants and Disclosure of Government IAS-20 Not Applicable
Assistance
The Effects of Changes in Foreign Exchange Rates IAS-21 Applied
Borrowing Costs IAS-23 Applied
Related Party Disclosures IAS-24 Applied
Accounting and Reporting by Retirement Benefit Plans IAS-26 Not Applicable
Separate Financial Statements IAS-27 Applied
Investments in Associates IAS-28 Not Applicable
Financial Reporting in Hyperinflationary Economies IAS-29 Not Applicable
Financial Instruments: Presentation IAS-32 * Applied
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
Financial Instruments: Recognition and Measurement IAS-39 * Applied
Investment property IAS-40 Not Applicable
Agriculture IAS-41 Not Applicable
* Subject to departure described in note 2.1

** Subject to departure described in note 3.25
Standards issued but not yet effective:
A number of new standards and amendments to standards are effective for annual periods beginning after 1
January 2019 and earlier application is permitted; however, the Company has not early adopted the following new
or amended standards in preparing these financial statements. None of these is expected to have a significant
effect on the consolidated financial statements of the Group and the Bank when will be applicable.
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a bank with vision
A. IFRS 16 Leases
As per IFRS 16 Lease, a lease is a contract (or part of a contract) that conveys the right to control the use of an
identified asset for a period of time in exchange for consideration. IFRS 16 eliminates the classification of leases by
the lessee as either finance leases or operating leases. IFRS 16 requires a lessee to recognise a “right-of-use” of the
underlying asset and a lease liability reflecting future lease payments for most leases. For lessors, IFRS 16 retains
most of the requirements in IAS 17. Lessors continue to classify all leases as either operating leases or finance
leases and account for them differently. The Bank is reviewing all of the Company’s leasing arrangements in light of
the new lease accounting rules in IFRS 16.
B. IFRS 17 Insurance Contracts
Insurance Contracts are effective for annual periods beginning on or after 1 January 2021. Earlier adoption is
permitted. This has not been applied in preparing these consolidated and separate financial statements.
3.22 Credit Rating of the Bank
As per the BRPD circular No.6 dated 5 July 2006, the bank has done its credit rating by Credit Rating Information
and Services Limited (CRISL) based on the audited financial statements dated 31 December 2017
Particulars Date of Rating Long term Short term

AA ST-2
Double A
Surveillance Rating
28-Jun-18 (High quality and High (High Grade)
Safety)
Outlook Stable
3.23 Correspondence items
Correspondence items are maintained to have control over all items of importance and for such transactions
where the Bank has only a business responsibility and no legal commitment. Stock of travelers cheques, savings
certificates, wage earners bond and others fall under the correspondence items.
3.24 Offsetting
Financial assets and liabilities are offset and the net amount presented in the balance sheet when, and only when,
the Group and the Bank have a legal right to set off the recognised amounts and it intends either to settle on a
net basis or to realise the asset and settle the liability simultaneously.
Income and expenses are presented on a net basis only when permitted under IFRSs, or for gains and losses
arising from a group of similar transactions such as in the Group’s trading activity.
3.25 Operating segments
The Group and the Bank have no identified operating segment and as such presentation of segmental reporting
is not made in the financial statements as per IFRS 8. However, geographical and business segments wise limited
disclosures are furnished in Annexure-I.
3.26 Going concern basis of accounting
These financial statements have been prepared on the assessment of the Bank’s ability to continue as a going
concern. The Bank has neither any intention nor any legal or regulatory compulsion to liquidate or curtail
materially the scale of any of its operations. The key financial parameters (including liquidity, profitability, asset
quality, provision sufficiency and capital adequacy) of the Bank continued to exhibit a healthy trend for couple of
years. 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.
3.27 Approval of financial statements
The financial statements were approved by the board of directors on 30 April 2018.
3.28 General
Figures of previous year have been rearranged, whenever necessary, to conform the current year’s presentation.
371
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Note
Taka Taka
4 Consolidated cash
In hand (including foreign currencies):
Southeast Bank Limited 4.1 3,598,790,655 3,010,980,173
Southeast Exchange Company (South Africa) Pty Ltd 23 1,202
Southeast Financial Services (Australia) Pty Ltd 61,419 1,600
3,598,852,097 3,010,982,975
(including foreign currencies):
Southeast Bank Limited 4.1 17,916,575,574 17,968,153,354
21,515,427,671 20,979,136,329
4.1 Cash
In hand:
Local currency 3,506,484,120 2,949,626,994
Foreign currencies 92,306,534 61,353,179
3,598,790,655 3,010,980,173
Balance with Bangladesh Bank:
Local currency 16,778,266,745 17,265,232,466
Foreign currencies 724,543,372 385,289,801
17,502,810,117 17,650,522,267
Balance with Sonali Bank Limited (as agent of Bangladesh Bank):
Local currency 413,765,457 317,631,087
Balance with Bangladesh Bank and its agent banks 17,916,575,574 17,968,153,354
(including foreign currencies)
21,515,366,229 20,979,133,527
4.2 Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in accordance
with section 33 of the Bank Companies Act, 1991 (Amended up to 2013), MPD Circular nos. 4 and 5 dated 1
December 2010 and MPD Circular no. 1 and 2 dated 23 June 2014 and 10 December 2013 respectively and DOS
Circular no.1 dated 19 January 2014 and MPD Circular No.1 dated 03 April 2018.
The statutory Cash Reserve Ratio on the Bank's demand and time liabilities at the rate of minimum 5.0% on daily
basis and 5.50% on bi-weekly basis for conventional and Islamic banking has been calculated and maintained
with Bangladesh Bank in current account and 13% Statutory Liquidity Ratio for conventional banking and 5.50%
Statutory Liquidity Ratio for Islamic banking on the same liabilities has also been maintained in the form of
treasury bills, bonds and debentures including excess cash reserve balance with Bangladesh Bank. Both the
reserves maintained by the Bank are in excess of the statutory requirements, as shown below:
4.2.1 a) Cash Reserve Ratio (CRR) for Conventional Banking
5.50% of average Demand and Time Liabilities:
Required reserve (Average daily on bi-weekly basis) 14,738,207,613 15,168,896,737
Actual reserve held 15,113,119,138 15,784,414,510
Surplus 374,911,525 615,517,773
b) Cash Reserve Ratio (CRR) for Islamic Banking
5.50% of average Demand and Time Liabilities:
Required reserve (Average daily on bi-weekly basis) 1,007,891,950 819,034,223
Actual reserve held 1,058,360,221 885,851,119
Surplus 50,468,271 66,816,896
4.2.2 a) Statutory Liquidity Ratio (SLR) for Conventional Banking

Required reserve (13% of average Demand and Time Liabilities) 34,835,763,448 30,337,793,473
Actual reserve held 54,215,962,419 53,330,118,813
Surplus 19,380,198,971 22,992,325,340
Held for Statutory Liquidity Ratio of Conventional Banking:
Cash in hand 3,448,576,000 2,844,590,000
Balance with agent bank (Sonali Bank Limited) as per statement 399,436,000 315,211,000
Excess cash reserve 374,911,525 615,517,773
Government Securities (HFT) 10,816,964,383 16,167,101,000
Government Securities (HTM) 39,170,936,211 33,383,358,000
Other eligible securities/ Prize Bond 5,138,300 4,341,040
54,215,962,419 53,330,118,813
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Note
Taka Taka
b) Statutory Liquidity Ratio (SLR) for Islamic Banking
Required reserve (5.50 % of average Demand and Time Liabilities) 1,007,891,950 693,028,958
Surplus 168,368,321 190,891,938
Held for Statutory Liquidity Ratio of Islamic Banking:
Cash in hand 150,220,000 166,396,000
Balance with agent bank (Sonali Bank Limited) as per statement 5,572,000 708,000
Government Securities (HTM) 970,000,000 650,000,000
1,176,260,271 883,920,896
5 Consolidated balance with other banks and financial institutions
In Bangladesh:
Southeast Bank Limited 6 3,984,794,486 3,196,881,943
Southeast Bank Capital Services Limited 23,324,151 32,538,042
4,008,118,637 3,229,419,985
Less: Inter company balance eliminated 23,324,151 32,538,042
3,984,794,486 3,196,881,943
Outside Bangladesh:
Southeast Bank Limited 6 2,272,907,523 965,226,853
Southeast Financial Services (UK) Ltd 15,447,609 10,861,425
Southeast Financial Services (Australia) Pty Ltd - 7,578
Southeast Exchange Company (South Africa) Pty Ltd 161,284,420 106,629,955
2,449,639,553 1,082,725,811
6,434,434,039 4,279,607,754
6 Balance with other banks and financial institutions
In Bangladesh 6.1 3,984,794,486 3,196,881,943
Outside Bangladesh 6.2 2,272,907,523 965,226,853
6,257,702,009 4,162,108,796
Also refer to note 6.3 for maturity wise grouping
6.1 In Bangladesh
Current account with:
Agrani Bank Limited 30,576,275 575,850
Al Arafah Islami Bank Limited 79,276,813 45,265,708
Bangladesh Krishi Bank 5,116 -
BRAC Bank Limited 5,001 5,001
BRAC Bank Limited (El Dorado Network) 283,060 396,695
The City Bank Limited 8,205,526 4,661,023
Commercial Bank of Ceylon PLC 13,577 13,337
EXIM Bank Limited 23,515,071 20,643,735
The Farmers Bank Limited 866,009 3,551,600
Jamuna Bank Limited 47,917,936 50,113,699
Janata Bank Limited 24,392,635 29,747
Meghna Bank Limited 19,447,552 10,255,457
Mercantile Bank Limited 25,904,570 10,779,207
Modumoti Bank Limited 1,552,095 1,561,425
Mutual Trust Bank Limited 29,407,803 23,840,589
National Bank Limited 59,408 11,520,963
NRB Commercial Bank Limited - 100,000
One Bank Limited 1,186,410 (869,991)
Prime Bank Limited - 628
Rupali Bank Limited 25,000 -
Shahjalal Islami Bank Limited 550,000 550,000
Sonali Bank Limited (2,166,519) (1,411,805)
South Bangla Agriculture & Commerce Bank Limited 3,203,623 2,169,078
Trust Bank Limited 9 9
Union Bank Limited 25,137,481 21,993,167
United Commercial Bank Limited 36,882,184 8,547,767
356,246,634 214,292,889
373
2018 2017
Note
Taka Taka
Short term deposits account with:
AB Bank Limited 30,690 28,004
Eastern Bank Limited 26,799 29,556
Standard Chartered Bank 3,351,284 194,482
Sonali Bank Limited 28,611,897 27,719,571
Uttara Bank Limited - 345
538,547,852 32,589,054
Fixed deposits with other banks:
Commercial Bank of Ceylon Plc. - 400,000,000
Dhaka Bank Limited - 550,000,000
Jamuna Bank Limited - 250,000,000
Mutual Trust Bank Limited - 400,000,000
National Bank Limited - 500,000,000
Social Islami Bank Limited 500,000,000 -
Standard Bank Limited - 300,000,000
500,000,000 2,400,000,000
Fixed deposits with financial institutions:
Bay Leasing and Investment Limited 990,000,000 450,000,000
IDLC Finance Limited 500,000,000 -
Delta Brac Housing Finance Corporation Limited 500,000,000 -
Bangladesh Industrial Finance Company Limited 100,000,000 100,000,000
Investment Corporation of Bangladesh 500,000,000 -
2,590,000,000 550,000,000
3,984,794,486 3,196,881,943
6.2 Outside Bangladesh
Current account
Interest bearing:
Standard Chartered Bank, New York, USA 344,142,271 86,529,828
Standard Chartered Bank, New York OBU 80,736,585 5,569,926
Citibank N.A, New York, USA 137,769,758 58,188,713
Standard Chartered Bank, London, UK 5,793,834 24,335,170
Mashreq Bank PSC, New York, USA 308,627,026 131,904,873
Wells Fargo Bank, N.A., New York, USA 4,588,519 87,426,417
Citibank AG, Frankfurt, Germany 67,721,709 54,683,457
Standard Chartered Bank, Kolkata, India 25,533,159 619,283
AB Bank Ltd., Mumbai, India 45,309,651 10,276,911
ICICI Bank Ltd., Mumbai, India 49,992,604 38,325,827
JP Morgan Chase Bank N.A., New York, USA 127,388,420 31,734,569
Habib American Bank, New York, USA 535,578,787 113,518,856
Mashreq Bank, Mumbai, India 30,091,175 33,413,883
Mashreq Bank, Mumbai, India 1,485,413 1,543,260
Sonali Bank (UK) Ltd. USD - 257,277
Sonali Bank (UK) Ltd. GBP - 3,492,835
1,764,758,909 681,821,085
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Non-interest bearing:
Bank of Sydney Ltd, Sydney 5,025,363 4,096,286
Banque Saudi Fransi, Riyadh 4,144,044 21,954,062
United Bank Limited, Karachi, Pakistan 3,694,384 3,567,858
Standard Chartered Bank, Colombo, Srilanka 29,860,364 19,877,855
Standard Chartered Bank, Mumbai (AEB), India 2,118,895 2,088,589
Bank of Tokyo, Mitsubishi, JPY 79,567,794 32,630,020
Nepal Bangladesh Bank Ltd., Kathmandu, Nepal 27,900,081 22,317,811
Bank of Bhutan, Pheuntsholing, Bhutan 16,711,425 20,589,244
Commerz Bank AG, Frankfurt, Germany EURO 603,335 40,480,379
Commerz Bank AG, Frankfurt, Germany USD 175,698,521 40,185,050
Zuercher Kantonal Bank, Zurich, Switzerland 1,852,844 18,003,835
HDFC Bank, Mumbai, India 77,512,594 7,209,740
Habib Bank AG Zurich, Zurich, Switzerland - 328,475
Mashreq Bank PSC, Dubai, UAE 69,162,123 2,843,673
Habib Metropoliton Bank Ltd., Karachi, Pakistan 14,296,848 47,232,891
508,148,614 283,405,768
2,272,907,523 965,226,853
Details of Balance with other banks-Outside Bangladesh shown in Annexure-C.
6.3 Maturity grouping of balance with other banks and financial institutions
On demand 3,684,700,000 1,179,519,742
Not more than three months 2,373,002,009 2,682,589,054
More than three months but not more than six months 200,000,000 300,000,000
More than six months but not more than one year - -
More than one year but less than five years - -
Above five years - -
6,257,702,009 4,162,108,796
7 Money at call and on short notice

In bank:
One Bank Limited 50,000,000 -
National Credit and Commerce Bank Limited 100,000,000 350,000,000
National Bank Limited 700,000,000 -
Citi Bank N. A 500,000,000 -
Dhaka Bank Limited 300,000,000 -
Uttara Bank Limited 1,000,000,000 -
Standard Bank Limited - 150,000,000
The ICB Islamic Bank Limited 11,300,000 11,300,000
3,511,300,000 1,111,300,000
In non-banking financial institutions (public and private):
Bay Leasing and Investment Limited 410,000,000 340,000,000
Delta BRAC Housing Finance Corporation Limited 300,000,000 80,000,000
Investment Corporation of Bangladesh 390,000,000 500,000,000
IDLC Finance Limited 390,000,000 -
IPDC Finance Limited 50,000,000 -
1,540,000,000 920,000,000
375
2018 2017
Note
Taka Taka
In foreign currency:
BRAC Bank Limited - 330,800,000
Dhaka Bank Limited - 165,400,000
Eastern Bank Limited 587,300,000 413,500,000
Mercantile Bank Limited - 330,800,000
Mutual Trust Bank Limited 251,700,000 -
NCC Bank Limited 335,600,000 -
Pubali Bank Limited 251,700,000 -
Rupali Bank Limited - 124,050,000
The City Bank Limited 419,500,000 -
Shahjalal Islami Bank Limited - 165,400,000
United Commercial Bank Limited - 82,700,000
1,845,800,000 1,612,650,000
6,897,100,000 3,643,950,000
8 Consolidated Investments
Government securities:
50,963,038,896 50,204,799,973
Others:
Southeast Bank Capital Services Limited 2,725,796,239 2,587,875,942
14,646,513,537 12,706,244,499
65,609,552,433 62,911,044,472
9 Investments
Government securities:
Conventional Banking 9.1.1 49,993,038,896 49,554,799,973
Islamic Banking 9.2.1 970,000,000 650,000,000
50,963,038,896 50,204,799,973
Others:
Conventional Banking 9.1.2 8,675,863,435 7,327,778,746
Islamic Banking 9.2.2 3,244,853,863 2,790,589,811
11,920,717,298 10,118,368,557
62,883,756,194 60,323,168,530
Also refer to notes 9.3 to 9.8 for further analysis, maturity wise grouping, market value information, sector wise
investment, etc.
9.1 Conventional Banking
9.1.1 Government Securities
Treasury Bills
91 days Treasury Bills - -
364 days Treasury Bills 968,626,000 -
968,626,000 -
Add: Reverse repo with other banks 1,002,951,720 -
Less:Assured Repo with Bangladesh Bank/ Others (at book value) - -
1,971,577,720 -
Prize Bonds 5,138,300 4,341,040

Bangladesh Bank Bills - -
5,138,300 4,341,040
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Government Bonds
2 Years BGTB HTM - 1,000,090,436
5 Years BGTB HTM 8,720,163,602 5,175,910,399
10 Years BGTB HTM 14,729,336,147 13,916,649,159
15 Years BGTB HTM 7,485,640,185 6,490,177,303
20 Years BGTB HTM 7,269,670,916 5,836,710,538
Remeasured 10 years BGTB HTM 966,125,363 963,820,461
2 Years BGTB HFT 2,129,280,900 785,868,231
5 Years BGTB HFT 2,892,653,054 8,536,183,353
10 Years BGTB HFT 3,088,755,189 6,551,995,373
15 Years BGTB HFT 18,453,195 138,217,259
20 Years BGTB HFT 17,774,846 154,836,421
47,317,853,396 49,550,458,933
Add: Reverse repo with other banks (at book value) 698,469,480 -
Less: Assured Repo with Bangladesh Bank/ Others (at book value) - -
48,016,322,876 49,550,458,933
49,993,038,896 49,554,799,973
9.1.2 Others
Shares in listed companies 1,648,793,522 1,566,290,136
Shares in un-listed companies 77,069,912 61,488,610
Bonds 6,950,000,000 5,700,000,000
8,675,863,435 7,327,778,746
9.2 Islamic banking
9.2.1 Government securities
Bangladesh Government Islamic bond 970,000,000 650,000,000
970,000,000 650,000,000
9.2.2 Others
3,244,853,863 2,790,589,811
9.3 Investments classified as per Bangladesh Bank Circular
Held for trading (HFT) 10,816,964,383 16,171,441,677
Held to maturity (HTM) 40,146,074,513 34,033,358,296
Other securities 11,920,717,298 10,118,368,557
62,883,756,194 60,323,168,530
9.4 Maturity-wise grouping of investments
On demand 5,138,300 4,341,040
Not more than three months 1,607,800,000 2,621,953,085
More than three months but not more than one year 8,230,800,000 10,367,319,260
More than one year but not more than five years 30,097,800,000 21,622,020,484
Above five years 22,942,217,894 25,707,534,661
62,883,756,194 60,323,168,530
9.5 Cost and market value of investments

2018 2017
Cost price Market price Market price
Taka Taka Taka
Conventional Banking
Treasury Bills 1,981,126,860 1,971,577,720 -
Bangladesh Government Treasury Bond 48,279,121,365 48,016,322,876 49,550,458,933
Prize Bonds 5,138,300 5,138,300 4,341,040
50,265,386,525 49,993,038,896 49,554,799,973
Islamic Banking
Bangladesh Government Islamic Bond 970,000,000 970,000,000 650,000,000
51,235,386,525 50,963,038,896 50,204,799,973
377
9.5.2 Others (Investment in Shares)

2018 2017
Market price Cost price Cost price
Taka Taka Taka
Shares in listed companies 1,457,958,207 1,648,793,522 1,566,290,137
Shares in un-listed companies 77,069,912 77,069,912 61,488,610
1,535,028,119 1,725,863,435 1,627,778,747
Islamic Banking
2,623,643,648 3,244,853,863 2,790,589,811
Shares in listed companies
Investments have been recorded at cost and adequate provision has been maintained for probable future losses
as per Bangladesh Bank guidelines. Market value of shares has been determined on the basis of the value of
shares at the last trading day of the year.
Details are shown in Annexure-D.
9.6 Sector wise investment of shares

2018 2017
Taka Taka Taka
Shares in listed companies (A)
Banks and NBFI 905,392,651 1,681,086,860 1,473,501,914

Insurance Companies 1,209,410,507 861,676,102 718,797,113
Fuel and Power Companies 274,925,783 381,160,963 246,110,932
Mutual Fund 366,656,060 293,475,095 305,380,556
Manufacturing & Other 1,325,216,854 1,676,248,365 1,613,089,433
4,081,601,855 4,893,647,386 4,356,879,948
2018 2017
Net Book Vaiue Cost price Cost price
Taka Taka Taka
Shares in un-listed companies (B)
Banks and NBFI 114,666,920 54,183,820 54,183,820
Others 31,170,812 22,886,092 7,304,790
145,837,732 77,069,912 61,488,610
Total investment of shares (C=A+B) 4,970,717,298 4,418,368,558
The investments in shares of unlisted companies are shown at cost or net book value of the last audited balance
sheet, whichever is lower.
9.7 Market price and cost price of investments in ordinary shares as on 31 Dec 2018
2018 Differences (Provision
SL.
Name of the Company Market price Cost price to be required)
no.
Taka Taka Taka
1 Asia Insurance 36,732,745 76,805,098 (40,072,353)
2 ACME Laboratories Limited 271,114,144 176,276,266 94,837,878
3 BAY Leasing and Investment Limited 280,453,126 653,782,763 (373,329,637)
4 EXIM Bank Ltd. 192,288,092 370,656,956 (178,368,864)
5 EXIM Bank 1ST MF 31,156,060 43,475,095 -
6 Lafarge Holcim Bangladesh Limited 43,500,000 89,321,368 (45,821,368)
7 Delta Life 7,502,195 12,382,964 (4,880,769)
8 National Life Insurance Company Limited 1,165,175,567 772,488,040 392,687,527
9 Prime Bank Limited 315,083,937 460,263,791 (145,179,854)
10 SEBL1ST MF 335,500,000 250,000,000 85,500,000
11 ACI Formulation 7,690,000 10,738,662 (3,048,662)
12 AFC Agro Biotech Limited 26,514,653 36,946,327 (10,431,674)
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SL.
no.
Taka Taka Taka
13 Active Fine Chemicals 18,053,155 21,204,434 (3,151,279)
14 AMAN Feed Limited 9,101,682 12,573,171 (3,471,489)
15 Aftab Automobiles Limited 85,682,310 145,359,192 (59,676,882)
16 Apolo Ispat 42,364,587 79,356,578 (36,991,991)
17 Argon Denim 17,316,130 22,675,929 (5,359,799)
18 Barka Power 65,743,532 80,616,388 (14,872,856)
19 BANGAS Limited 12,692,048 11,020,775 1,671,273
20 Bangladesh Building Systems 40,656,000 54,399,157 (13,743,157)
21 BD COM 25,135,302 29,697,505 (4,562,203)
22 BD FINANCE Limited 2,330,900 2,886,450 (555,550)
23 Bangladesh Thai Aluminium Limited 35,454,308 42,868,798 (7,414,490)
24 Beximco Limited 35,655,375 44,103,746 (8,448,371)
25 Bangladesh Shipping Corporation Limited 38,341,485 49,874,160 (11,532,675)
26 BSCCL 34,904,672 58,527,823 (23,623,151)
27 BSRM Limited 36,959,783 56,679,577 (19,719,794)
28 BSRM Steel Mills Limited 4,585,944 7,019,678 (2,433,734)
29 Bashundara Paper Mills Limited 7,542,000 11,647,591 (4,105,591)
30 Central Pharma 4,725,204 9,391,717 (4,666,513)
31 The City Bank Limited 634,200 824,675 (190,475)
32 Confidence Cement 46,812,600 47,548,604 (736,004)
33 Doreen Power 17,753,780 23,687,937 (5,934,157)
34 DESHBANDHU Polymer Limited 1,320,000 1,980,641 (660,641)
35 Eastern Bank Limited 4,320,000 4,564,389 (244,389)
36 Eastern Housing Limited 15,800,848 18,217,288 (2,416,440)
37 Fuwang Ceramic 6,960,583 7,967,868 (1,007,285)
38 FOURTUNE Shoes Limited 3,100,000 3,383,480 (283,480)
39 Golden Harvest Limited 14,865,833 18,665,067 (3,799,234)
40 Global Heavy Chemical Limited 23,807,785 34,247,190 (10,439,405)
41 GPH Ispat Limited 45,515,852 47,043,199 (1,527,347)
42 ICB 19,799,899 27,605,297 (7,805,398)
43 Indo Bangla Pharmacitical Limited 9,159 2,677 6,482
44 International Leasing Limited 17,955,794 24,424,191 (6,468,397)
45 INTRACO Refuling Station Limited 3,114,141 4,977,033 (1,862,892)
46 Islami Bank 9,680,000 15,986,816 (6,306,816)
47 Khulna Power Company Limited 65,647,786 116,697,597 (51,049,811)
48 Kattli Textile Limited 280,081 100,640 179,441
49 LankaBangla Finance Limited 37,412,955 63,609,848 (26,196,893)
50 Matin Spinning Limited 11,315,640 14,044,434 (2,728,794)
51 Mozaffar Hossain Spinning Mills Limited 10,780,473 20,059,098 (9,278,625)
52 MJL Limited 17,707,200 21,016,635 (3,309,435)
53 Meghna Petroleum Limited 18,890,930 22,603,106 (3,712,176)
54 METROSPIN 816,000 1,184,469 (368,469)
55 MLDYEING 125,603 35,242 90,361
56 National Polymar 5,446,666 6,271,005 (824,339)
57 National Tubes Limited 43,346,600 49,167,648 (5,821,048)
58 Olympic Accessories Limited 34,585,798 60,671,590 (26,085,792)
59 OLYMPIC Limited 10,810,000 12,280,119 (1,470,119)
60 Oimex Electrode Limited 164,505 193,491 (28,986)
61 Orion Pharma 44,302,821 61,952,895 (17,650,074)
62 Padma Oil Company Limited 11,196,944 12,487,427 (1,290,483)
63 Premier Cement 39,103,531 57,393,541 (18,290,010)
64 Premier Leasing 7,178,100 15,325,745 (8,147,645)
65 Prime Finance Limited 7,643,035 26,958,933 (19,315,898)
66 PRIMETEX Limited 7,233,429 8,288,244 (1,054,815)
379

SL.
no.
Taka Taka Taka
67 Paramount Textile Limited 1,153,250 1,085,254 67,996
68 RN Spinning 6,095,525 12,812,929 (6,717,404)
69 RSRM STEEL Limited 53,140,758 77,550,224 (24,409,466)
70 Saif Power Tec Limited 9,821,370 13,859,527 (4,038,157)
71 SALAMCRST 22,954,800 31,969,454 (9,014,654)
72 SAPORTL 18,055,952 31,409,800 (13,353,848)
73 SILVA Pharmacitical Limited 276,709 91,930 184,779
74 Shasha Denim Limited 21,874,604 23,475,673 (1,601,069)
75 Shahjibazar Power Company Limited 58,586,400 79,199,118 (20,612,718)
76 Summit Power 4,138,970 4,622,232 (483,262)
77 SKTRIMS 256,738 50,410 206,328
78 Titas Gas 5,460,000 7,670,726 (2,210,726)
79 United Finance 10,612,613 14,197,006 (3,584,393)
80 United Power Generation 6,686,100 7,582,764 (896,664)
81 VFS Thread Deying Limited 244,072 38,388 205,684
82 WMSHIPYARD Sheppeard Limited 5,014,800 6,603,030 (1,588,230)
83 Zahen Spinning 18,066,097 33,151,273 (15,085,176)
84 Runner auto IPO 1,080,825 1,080,825 -
85 AND Telecom 569,040 569,040 -
86 SSSTEEL 134,920 134,920 -
87 Genex Infor 104,660 104,660 -
88 Esqure net IPO 1,880,145 1,880,145 -
4,081,601,855 4,893,647,386 (799,726,496)
Actual provision 799,726,500
Surplus/(deficit) 4
9.8 Transactions of Repo and Reverse-repo during the year

Minimum Maximum Daily average
outstanding outstanding outstanding
Taka Taka Taka
2018
Securities sold under repo
i) With Bangladesh Bank - - -
ii) With other Banks & FIs 156,713,657 1,535,260,080 47,674,919
Securities purchased under reverse repo
2017
Securities sold under repo
Securities purchased under reverse repo
380
a bank with vision
2018 2017
Note
Taka Taka
10 Consolidated loans and advances/investments
Loans, cash credit, overdrafts etc./investments:
Southeast Bank Capital Services Limited 2,467,417,246 2,465,716,400
255,400,659,122 223,657,502,019
Less: Inter company balance eliminated -
255,400,659,122 223,657,502,019
Bills purchased and discounted:
12,270,968,683 10,659,214,310
267,671,627,805 234,316,716,329
11 Loans and advances/investments
Loans, cash credit, overdrafts etc./investments 11.1 252,933,241,876 221,191,785,619
Bills purchased and discounted 11.14 12,270,968,683 10,659,214,310
265,204,210,559 231,850,999,929
11.1 Loans, cash credit, overdrafts etc./Investments
In Bangladesh:
Demand loan 7,446,663,360 6,523,478,141
Time loan 27,005,835,559 25,706,837,604
Term loan 99,358,892,070 79,529,348,385
Agricultural credit-Term 995,463,927 1,673,427,615
Agricultural credit-Time 1,163,473,709 1,661,209,453
Agricultural credit-OD 189,825,090 185,519,891
Consumer credit scheme 2,988,823 3,963,882
Car loan 128,683,786 109,247,296
Personal loan 478,889,995 473,932,761
Home loan 1,256,450,806 948,808,661
Rural Home Loan 170,362,632 -
Loan against - LTFF 174,436,799 -
Loan against GTF 10,864,315 -
Cash credit and overdrafts 58,603,918,907 52,900,215,618
Bills Against Letter of Credit (BLC) 120,286,863 1,009,677,345
Loan re-finance housing sector 15,557,895 18,246,407
Loan against Trust Receipt (LTR) 16,566,111,770 17,985,066,720
Advances-packing credit (PC) 3,210,961,945 3,564,356,842
Loan against foreign bills 120,081,946 97,119,159
House building loan-staff 365,431,298 272,796,136
Digital device 45,859 22,444
Export Development Fund (EDF) 18,199,188,944 12,931,627,959
Loan against cash incentive 132,117,051 79,738,862
Loan-credit card 1,889,094,911 1,553,275,922
237,605,628,260 207,227,917,101
Islamic Banking
Demand investment 528,987,815 414,036,921
Bai-Muajjal (Time) investment 195,402,971 399,099,215
Bai-Muajjal Time under CCS 79,622,265 74,507,241
Bai-Murabaha-BLC - 28,009,964
Bai-Murabaha-LTR 1,193,826,782 800,511,034
Bai-Salam (advances-packing credit) 149,133,314 64,089,258
Staff house building investment 16,635,522 12,806,256
Export Development Fund (EDF) 773,063,701 712,130,203
Investment against cash incentive 17,131,016 19,626,562
Bai-Muajjal-investment 3,833,616,144 3,668,800,807
Murabaha-investment 617,028,554 639,319,763
Hire purchase-investment 7,923,165,532 7,130,931,292
15,327,613,616 13,963,868,518
252,933,241,876 221,191,785,619
Outside Bangladesh - -
252,933,241,876 221,191,785,619
381
2018 2017
Note
Taka Taka
11.2 Performing loans and advances/investments
Gross loans and advances/investments 265,204,210,559 231,850,999,929
Non-performing loans and advances/investments (15,558,851,040) (13,878,533,441)
249,645,359,519 217,972,466,488
11.3 Maturity-wise grouping of loans and advances/investments
On demand 35,920,100,000 53,542,866,451
Less than three months 42,398,300,000 30,554,565,718
More than three months but less than one year 93,389,800,000 67,733,374,239
More than one year but less than five years 55,815,500,000 49,479,816,953
More than five years 37,680,510,559 30,540,376,568
265,204,210,559 231,850,999,929
11.4 Concentration of loans and advances/investments
Advances to allied concerns of directors - -
Advances to chief executive and other senior executives 121,693,360 102,834,000
Advances to customers' group:
Advances to large and medium industries 180,151,419,488 144,177,565,166
Advances to small and cottage industries 12,993,557,061 8,823,634,834
Commercial Loans 43,670,568,760 47,819,953,689
Consumer Credit 4,052,000,000 3,449,384,677
Off-shore Banking Loans 11,744,269,214 8,124,620,108
Other loans and advances 12,470,702,676 19,353,007,455
265,204,210,559 231,850,999,929
Details of large loan/investments
As at 31 December 2018 there were 34 (2017:29) clients with whom amount of outstanding loans and advances
exceeded 10% of the total capital of the Bank. Total capital of the Bank was Tk 38,755.80 million as at 31
December 2018 (Tk. 33,679.04 million as at 31 December 2017).
The Bank complies with the requirements of the section 26 (b) of the Bank Companies Act 1991 as amended in
2013 in connection with the general limitations of credit line.
Details are shown in Annexure-D.
11.5 Sector-wise allocation of loans and advances

2018 2017
% of % of
total Taka total Taka
loan loan
Agriculture 0.99% 2,630,200,000 1.48% 3,432,400,000
Industrial (Manufacturing) 47.98% 127,250,714,579 43.06% 99,834,698,971
Industrial (Services) 16.26% 43,128,100,528 15.73% 36,476,966,000
Export Financing 8.68% 23,019,757,073 7.49% 17,371,600,000
Commercial Loans 16.47% 43,670,568,760 20.63% 47,819,953,689
Consumer Credit 1.53% 4,052,000,000 1.49% 3,449,384,677
Others:
a) Off-shore Banking Loans 4.43% 11,744,269,214 3.50% 8,124,620,108
b) Finance to NBFIs 0.60% 1,582,459,039 0.74% 1,718,300,000
c) Loans to Capital Market 0.54% 1,436,350,764 0.52% 1,214,900,000
d) Miscellaneous 2.52% 6,689,790,600 5.35% 12,408,176,484
100.00% 265,204,210,559 100.00% 231,850,999,929
382
a bank with vision
2018 2017
Note
Taka Taka
11.6 Industry-wise loans and advances (Industrial Loan)
Ready Made Garment industries Loan (RMG) 50,850,227,088 42,784,200,000
Real Estate industries 20,733,831,268 19,027,600,000
Textile industries 15,234,847,108 15,926,800,000
Agro-Based Industries 13,015,700,000 10,716,234,000
Cement & Ceramics industries 6,316,200,000 5,364,057,313
Ship Breaking & Ship Building industries 4,934,201,824 5,117,000,000
Pharmaceuticals industries 1,870,500,000 1,226,120,300
Other Industries 80,189,496,736 52,839,188,388
193,145,004,024 153,001,200,000
Figures of previous year have been rearranged in notes no: 11.4 , 11.5 and 11.6 to conform the current year’s
presentation
11.7 Category-wise Small Medium Enterprise loans and advances (SME)
Service sector 18,175,639,030 11,190,600,000
Trading sector 25,165,945,179 18,907,900,000
Industrial sector 30,428,060,601 9,456,700,000
73,769,644,810 39,555,200,000
11.8 Geographical location-wise allocations of loans and advances

2018 2017
% of % of
loan loan
Urban:
Dhaka region 74.35% 197,182,734,167 70.60% 163,690,795,982
Chittagong region 15.92% 42,216,725,245 18.54% 42,983,259,723
Rajshahi region 1.89% 5,014,000,055 1.96% 4,537,207,496
Sylhet region 1.22% 3,238,713,660 1.41% 3,279,114,783
Khulna region 0.55% 1,470,516,829 0.73% 1,700,376,628
Rangpur region 0.32% 836,234,155 0.35% 818,059,650
Barisal region 0.08% 220,365,353 0.08% 180,987,657
Mymensingh region 0.15% 386,439,156 0.17% 385,638,011
94.48% 250,565,728,620 93.84% 217,575,439,930
Rural:
Dhaka region 2.94% 7,792,380,927 3.27% 7,574,813,414
Chittagong region 1.80% 4,769,399,131 1.89% 4,390,520,410
Sylhet region 0.37% 969,841,873 0.39% 907,113,613
Rajshahi region 0.16% 425,224,948 0.24% 561,204,488
Khulna region 0.26% 681,635,060 0.36% 841,908,074
5.52% 14,638,481,939 6.16% 14,275,559,999
100.00% 265,204,210,559 100.00% 231,850,999,929
11.9 Classification of loans and advances
2018 2017
% of % of
loan loan
Unclassified:
Standard including staff loan 90.53% 240,083,546,744 88.67% 205,583,791,156
Special Mention Account (SMA) 3.61% 9,561,812,775 5.34% 12,388,675,332
94.13% 249,645,359,519 94.01% 217,972,466,488
383
2018 2017
% of % of
loan loan
Classified:
Sub-standard 0.06% 171,210,454 0.54% 1,244,359,189
Doubtful 0.14% 359,641,627 0.32% 753,245,200
Bad/loss 5.67% 15,027,998,959 5.12% 11,880,929,051
5.87% 15,558,851,040 5.99% 13,878,533,441
100.00% 265,204,210,559 100.00% 231,850,999,929
2018 2017
Taka Taka
11.10 Particulars of loans and advances
i) Debts considered good in respect of which the bank is

227,388,609,049 174,834,922,331
fully secured;
ii) Debts considered good for which the bank holds no
14,096,135,395 32,167,636,499
other security than the debtors’ personal security;
iii) Debts considered good secured by the personal liabilities
of one or more parties in addition to the personal 23,709,761,059 24,848,441,099
security of the debtors;
iv) Debts adversely classified; provision not maintained - -
v) Debts due by directors or officers of the bank or any of
375,355,363 284,774,135
them either severally or jointly with any other persons;
vi) Debts due by companies or firms in which the directors or
officers of the bank are interested as directors, partners
- -
or managing agents or, in case of private companies, as
members;
vii) Maximum total amount of advances, including temporary
advances made any time during the year to directors or
375,355,363 284,774,135
managers or officers of the bank or any of them either
severally or jointly with any other persons;
viii) Maximum total amount of advances, including temporary
advances granted during the year to companies or
firms in which the directors of the bank are interested - -
as directors, partners or managing agents or, in case of
private companies, as members;
ix) Due from banking companies; - -
x) Classified loans/investments for which interest has not
been charged:
(a) Increase/(decrease) of provision (specific) 3,333,219,044 2,900,396,650
Amount of debts written off 2,044,946,488 1,030,097,472
Amount realised against the debts previously written off 404,812,584 154,213,601
(b) Provision against the debt classified as bad/loss at

7,024,062,597 4,982,251,548
the date of balance sheet
(c) Amount of interest charged in suspense account 5,995,927,271 4,402,732,281
xi) Loans written off:

- Current year 2,538,512,754 1,286,795,227
Cumulative to-date 12,216,835,740 10,209,184,626
- The amount of written off loans for which lawsuit filed 12,216,835,740 10,209,184,626
384
a bank with vision
11.11 Particulars of required provision for loans and advances/investments

2018 2017
Outstanding Base for % of Required
Status Required
as at 31 Dec provision required provision
provision
2018 Taka provision Taka
Taka
Taka
For loans and advances/Investments:
Unclassified-general provision
All unclassified loans
(other than small
enterprises, housing
finance, Loan to MBs loans
for professional, consumer
financing and special
mention account) 169,795,101,016 169,795,101,016 1% 1,697,951,010 1,642,933,199
Small and medium
enterprise financing 63,264,434,215 63,264,434,215 0.25% 158,161,088 85,799,421
Loan to BHs/MBs/SDs
against shares 1,436,350,764 1,436,350,764 2% 28,727,015 24,297,408
Housing and loan for
professional 1,519,081,966 1,519,081,966 1%-2% 15,971,406 21,501,397
Consumer finance 2,430,853,320 2,430,853,320 2%-5% 67,997,386 56,535,590
Agriculture finance 1,262,896,159 1,262,896,159 1%-5% 12,628,962 23,945,436
Staff loan 374,829,304 374,829,304 1% 3,748,293 2,839,626
Special Mention Account (SMA) 9,561,812,775 9,333,771,432 0.25%-5% 97,181,570 145,454,148
2,082,366,729 2,003,306,225
Classified-specific provision:
Sub-standard 171,210,454 119,381,536 5%-20% 20,020,046 110,536,686
Doubtful 359,641,627 228,991,968 5%-50% 113,035,177 170,892,722
Bad/loss 15,027,998,959 7,024,062,597 100% 7,024,062,597 4,982,251,548
265,204,210,559 256,789,754,276 7,157,117,820 5,263,680,956
Required provision for loans and advances (A) 9,239,484,549 7,266,987,181
Total provision maintained (B) 13,283,300,001 10,069,290,980
Excess provision as at 31 December (C=B-A) 4,043,815,452 2,802,303,797
2018 2017
Note
Taka Taka
11.12 Suits filed by the Bank (Branch wise details)
Aganagar Branch 20,606,565 24,601,270

Agargaon Branch 28,740,963 106,715,269
Agrabad Branch 3,559,051,883 3,533,041,603
Banani Branch 1,011,368,047 1,011,368,047
Bandar Bazar Branch 49,554,021 49,554,021
Bandura Branch 5,660,298 -
Baneshwar Branch 10,773,766 -
Bangshal Branch 731,009,992 729,354,206
Bashundhara Branch 20,976,301 -
Bashurhat Branch 3,108,991 -
Biswanath Branch 2,083,587 -
Bogra Branch 394,934,357 118,153,762
Brahmanbaria Branch 14,126,982 14,126,982
CDA Avenue Branch 1,303,347,718 1,279,158,963
385
2018 2017
Note
Taka Taka
Chapainawabgonj Branch 7,964,715 7,964,715
Chowdhuryhat Branch 7,777,683 -
Chouhatta Branch 35,429,721 29,324,351
Chowmuhoni Branch 28,016,032 28,016,032
Comilla Branch 47,265,325 -
Companygonj Branch 12,162,624 -
Corporate Branch 97,479,009 56,546,456
Cox's Bazar Branch 372,592,835 81,196,958
Dhanmondi Branch 1,956,729,814 1,840,299,125
Dinajpur Branch 15,224,750 11,277,731
Donia Branch 4,345,474 -
Gulshan Branch 588,769,873 119,450,152
Halishahar Branch 2,035,945,543 2,018,990,181
Hathazari Branch 6,086,747 6,086,747
Hemayetpur Branch 3,590,035 -
Hetimgonj Branch 4,720,580 -
Imamgonj Branch 298,675,545 298,675,545
Jessore Branch 78,422,418 73,008,143
Jubilee Road Branch 42,730,094 41,758,043
Kakrail Branch 116,570,126 41,352,380
Kawranbazar Branch 298,470,311 297,083,230
Khatungonj Branch 1,222,123,411 859,750,230
Khulna Branch 98,484,842 98,484,842
Konabari Branch 1,862,261 1,862,261
Kotowali Branch 102,783,756 88,541,987
Kulaura Branch 6,965,264 6,965,264
Lohagara Branch 5,020,503 5,020,503
Laldighirpar Branch 142,833,996 113,465,769
Madambibirhat Branch 133,373,278 73,945,318
Madhabdi Branch 56,355,195 56,355,195
Mawna Branch 1,968,254 -
Mirpur Branch 14,659,835 -
Mohakhali Branch 52,035,572 -
Mohammadpur Branch 969,386,296 16,555,592
Momin Road Branch 506,269,625 280,105,740
Motijheel Branch 185,545,788 185,545,788
Mouchak Branch 129,189,304 101,910,981
Moulvibazar Branch 176,748,221 176,748,221
Naogaon Branch 44,418,957 45,095,755
Narayangonj Branch 61,570,175 67,174,359
New Elephant Road Branch 1,160,344,705 509,137,748
New Eskaton Branch 265,105,816 171,613,578
Oxygenmore Branch 7,253,948 7,253,948
Pahartoli Branch 826,535,766 826,535,766
Pathantula Branch 6,287,866 -
Principal Branch 7,533,160,574 5,860,973,599
Progoti Soroni Branch 358,264,233 235,817,088
Rajshahi Branch 558,348,642 -
Rangpur Branch 71,809,059 -
Rupnagar Branch 18,177,710 6,068,408
Sat Mashjid Road Branch 24,402,722 -
Savar Branch 1,992,139 -
Shyamoli Branch 80,148,835 73,453,562
Shahjalal Uposhahar Branch 111,505,535 141,598,745
Sir Iqbal Road Branch 14,315,940 14,315,940
Uttara Branch 265,683,942 265,683,942
28,429,244,691 22,107,084,042
386
a bank with vision
2018 2017
Note
Taka Taka
11.13 Listing of assets pledged as security/collaterals
Nature of the secured assets
Shares & Securities 1,628,543,392 2,393,560,755
Merchandise 3,121,194,707 1,979,609,787
Machinery with other fixed asset and financial obligation 6,294,508,398 9,573,750,430
Real estate with financial obligation 207,857,846,545 170,418,844,517
Financial obligation only 8,110,762,157 12,008,281,446
(Insurance policies, savings certificates, bank deposit etc)
Miscellaneous-
i) Crops/stock of crops hypothecation 974,760,191 628,811,625
ii) Guarantee of individuals/institutions 27,346,728,778 28,608,939,170
ii) Others 9,869,866,390 6,239,202,199
265,204,210,559 231,850,999,929
11.14 Bills purchased and discounted
In Bangladesh 3,591,727,500 3,358,027,075
Outside Bangladesh 8,322,147,295 7,027,904,759
11,913,874,795 10,385,931,834
Islamic Banking
In Bangladesh 357,093,888 255,665,585
Outside Bangladesh - 17,616,891
357,093,888 273,282,476
12,270,968,683 10,659,214,310
11.15 Maturity grouping of bills discounted and purchased
Within one month 5,422,081,397 3,279,484,642
More than one month but less than three months 3,318,600,047 3,480,327,845
More than three months but less than six months 3,060,593,182 2,540,297,150
More than six months 469,694,057 1,359,104,673
12,270,968,683 10,659,214,310
11.16 Information about restructured loan as per Bangladesh Bank’s BRPD Circular no. 4 dated 29 January 2015
Loans amounting to Tk. 3,103.80 million (outstanding Tk.2,798.60 million as on 31 December 2018) of Keya
Group, Gulshan Branch, Dhaka have been restructured by extension of validity of Term Loan for 12-years &
conversion of demand loan into 06-years Term Loan including one year moratorium under the purview of
BRPD Circular # 04 dated 29 January 2015. The status of the loans is unclassified and reported as SMA as per
Bangladesh Bank’s guidelines. Accordingly, 2% provision has been made.
12 Consolidated fixed assets including premises, furniture and fixtures
Cost:
Southeast Financial Services (Australia) Pty Ltd 2,520,519 2,752,018
11,939,642,605 11,563,406,818
Less: Accumulated depreciation
Southeast Financial Services (Australia) Pty Ltd 1,919,000 1,999,468
2,602,347,445 2,241,610,692
Written down value at the end of the year 9,337,295,160 9,321,796,126
There were no capitalized borrowing cost related to the acquisition of fixed assets during the year (2017: nil).
Details of consolidated amounts have not been provided as such amounts are insignificantly different from
those of the Banks.
387
2018 2017
Note
Taka Taka
13 Fixed assets including premises, furniture and fixtures
Cost:
Land 5,797,250,693 5,770,913,319
Buildings 1,989,262,277 1,897,220,492
Furniture and fixtures 1,331,911,302 1,205,150,111
Office appliances 15,282,870 14,620,108
Computer 272,016,322 255,021,073
Electrical appliances 1,387,170,289 1,310,729,568
ATM Booth 252,882,264 207,974,413
Motor vehicles 131,007,532 140,354,615
11,176,783,549 10,801,983,699
Buildings 526,877,198 469,770,862
Furniture and fixtures 640,658,640 571,449,165
Computer 128,482,224 93,708,239
Electrical appliances 857,053,965 743,073,333
ATM Booth 130,074,144 105,072,021
Motor vehicles 101,088,397 101,253,236
2,394,419,803 2,093,414,431
Written down value at the end of the year 8,782,363,746 8,708,569,268
Details are shown in Annexure-E.
14 Consolidated other assets
Southeast Financial Services (Australia) Pty Ltd 718,855 2,377,516
Southeast Exchange Company (South Africa) Pty Ltd 1,530,861 272,024
9,669,516,001 9,355,656,333
Less:
Investment in subsidiary:
In Bangladesh 5,489,930,000 5,452,930,000
Outside Bangladesh 65,100,021 65,100,021
5,555,030,021 5,518,030,021
Intercompany balance 4,244,208 1,823,132
4,110,241,772 3,835,803,180
15 Other assets 9,554,422,290 9,241,315,075

15.1 Classification of other assets
i) Investment in shares of subsidiary companies:
- In Bangladesh 15.3 5,489,930,000 5,452,930,000
- Outside Bangladesh 15.4 65,100,021 65,100,021
ii) Stationery, stamps, printing materials, etc. 42,239,443 57,534,926
iii) Advance rent and advertisement 343,744,413 368,571,028
iv) Interest accrued on investment but not collected, 1,585,574,838 1,458,019,937
commission and brokerage receivable on shares
and debentures, and other income receivables
v) Security deposits 4,622,119 3,017,779
vi) Preliminary, formation and organisational expenses,
renovation, development and prepaid expenses 1,185,521,300 829,109,496
vii) Suspense account 49,531,540 159,698,380
viii) Others 788,158,615 847,333,508
9,554,422,290 9,241,315,075
388
a bank with vision
2018 2017
Note
Taka Taka
15.2 Non-income generating other assets
i) Stationery, stamps, printing materials, etc. 42,239,443 57,534,926
ii) Advance rent and advertisement 343,744,413 368,571,028
iii) Suspense account 49,531,540 159,698,380
iv) Preliminary, formation and organisational expenses,
renovation, development and prepaid expenses 1,185,521,300 829,109,496
1,621,036,697 1,414,913,830
15.3 Investment in shares of subsidiary company in Bangladesh

Cost 5,489,930,000 5,489,930,000
Provision for impairment loss - (37,000,000)
5,489,930,000 5,452,930,000
15.4 Investment in shares of subsidiary companies outside Bangladesh
Cost 113,660,069 113,660,069
Provision for impairment loss (48,560,048) (48,560,048)
65,100,021 65,100,021
15.5 Particulars of required provision for other assets

Base for
Rate (%) Taka
provision
2018
Legal expenses for defaulting borrowings 12,433,639 50% 6,216,819
Others - 50% -
Others 145,000,000 100% 145,000,000
Protested bills 3,581,157 100% 3,581,157
Nostro account balance - 100% -
Required provision on other assets 218,340,551
Total provision maintained 233,735,000
Excess provision 15,394,449
Base for
Rate (%) Taka
provision
2017
Others - 50% -
Others 75,000,000 100% 75,000,000
Protested bills 3,581,157 100% 3,581,157
Nostro account balance - 100% -
Required provision on other assets 144,998,044
Total provision maintained 163,735,000
Excess provision 18,736,956
2017 2016
Note
Taka Taka
16 Consolidated borrowings from other banks, financial
institutions and agents
Subordinated bond:
11,800,000,000 7,400,000,000
Other borrowings:
Southeast Bank Capital Services Limited 54,208,827 -
11,211,700,343 10,181,648,728
Less: Inter company balance eliminated -
11,211,700,343 10,181,648,728
23,011,700,343 17,581,648,728
389
2018 2017
Note
Taka Taka
17 Borrowings from other banks, financial institutions and agents

Subordinated Bond 17.2.ii 11,800,000,000 7,400,000,000
Other borrowings 17.2.i +17.3 11,157,491,516 10,181,648,728
22,957,491,516 17,581,648,728
17.1 Borrowing from other banks, financial institutions and agents
In Bangladesh 17.2 12,260,241,516 9,766,498,728
Outside Bangladesh 17.3 10,697,250,000 7,815,150,000
22,957,491,516 17,581,648,728
17.2 In Bangladesh
i. Secured:
Refinance against agro-based credit from Bangladesh Bank 5,355,119 7,159,548
Refinance for housing sector from Bangladesh Bank 62,084,981 29,223,507
Refinance against SME loan from Bangladesh Bank 97,098,757 24,125,625
Refinance against Solar energy, Bio Gas & ETP - -
Scheme from Bangladesh Bank 5,555,552 1,766,840
Refinance against RPGCL 9,382,652 39,583,208
Borrowing from IDCOL 280,764,456 264,640,000
Bangladesh Bank Islamic Bond - 2,000,000,000
460,241,516 2,366,498,728
ii. Unsecured:
Subordinated Bond
Rupali Bank Limited 1,600,000,000 1,050,000,000
Sonali Bank Limited 2,200,000,000 1,600,000,000
Agrani Bank Limited 2,250,000,000 850,000,000
Pubali Bank Limited 1,330,000,000 1,240,000,000
Mercantile Bank Limited 150,000,000 200,000,000
Saudi-Bangladesh Industrial and Agricultural Investment Company Ltd. 120,000,000 160,000,000
Sadharan Bima Corporation 200,000,000 100,000,000
Uttara Bank Limited 200,000,000 200,000,000
Dhaka Bank Limited 750,000,000 750,000,000
National Life Insurance Limited 1,250,000,000 750,000,000
Janata Bank Limited 1,500,000,000 500,000,000
Delta Life Insurance Co. Limited 250,000,000 -
11,800,000,000 7,400,000,000
Total (iii=i+ii) 12,260,241,516 9,766,498,728
17.3 Outside Bangladesh
Secured
Borrowing from MASHREQ BANK PSC-USD - 827,000,000
Borrowing from Commercial Bank of Qatar (CBQ) 1,678,000,000 661,600,000
Borrowing from RAK BANK, UAE 1,384,350,000 1,240,500,000
Borrowing from Bank Muscat, Oman - 661,600,000
Borrowing FM SCB SINGAPORE 2,097,500,000 -
Borrowing FM EIB, UAE 1,342,400,000 -
Borrowing from FGB, UAE 1,258,500,000 827,000,000
Borrowing FM NMB Bank, Nepal 419,500,000 -
Borrowing from HDFC BANK, Hong Kong - 413,500,000
8,180,250,000 4,631,200,000
390
a bank with vision
2018 2017
Note
Taka Taka
Unsecured
Borrowing from International Finance Corporation (IFC) - 1,240,500,000
Borrowing from Global Climate Partnership Fund S.A. 1,678,000,000 1,654,000,000
Borrowing from ADB 839,000,000 289,450,000
2,517,000,000 3,183,950,000
10,697,250,000 7,815,150,000
17.4 Maturity grouping of borrowings
Repayable on demand - -
Repayable within one month 1,266,890,000 1,327,000,000
Over one month but within six months 7,613,624,456 5,858,290,000
Over six months but within one year 2,019,500,000 1,240,500,000
Over one year 12,057,477,060 9,155,858,728
22,957,491,516 17,581,648,728
18 Consolidated deposits and other accounts
Current/Al-wadeeah current accounts and other accounts
Southeast Bank Limited 40,457,857,551 35,516,538,988
40,495,389,913 35,544,063,409
40,472,065,762 35,511,525,367
Bills payable
Southeast Bank Capital Services Limited - -
4,494,551,361 4,933,769,345
Savings bank/Mudaraba savings bank deposits
27,259,920,347 23,896,582,534
Fixed deposits/Mudaraba fixed deposits
226,108,257,117 205,486,197,802
298,334,794,587 269,828,075,048
19 Deposits and other accounts
Current/Al-wadeeah current accounts and other
accounts
Current/Al-wadeeah current deposits 11,250,432,310 11,660,602,738
Foreign currency deposits 1,341,263,887 1,172,088,721
Sundry deposits 19.1 27,866,161,354 22,683,847,529
40,457,857,551 35,516,538,988
Bills payable
Payment order issued 4,490,503,198 4,929,177,495
Demand draft 4,048,163 4,591,850
4,494,551,361 4,933,769,345
391
2018 2017
Note
Taka Taka
Fixed deposits/Mudaraba fixed deposits
Special notice/Mudaraba special notice deposits 29,844,075,615 32,795,221,961
Scheme deposits 17,365,549,746 16,206,340,313
Interest payable on FDR/Scheme 3,502,408,519 2,226,047,542
226,108,257,117 205,486,197,802
298,320,586,377 269,833,088,669
19.1 Sundry deposits
Margin under letter of credit 2,799,904,442 2,763,811,423
Margin against IBP 36,031,780 2,204,555
Margin against FBP 14,988,274 17,555,879
Margin under letter of guarantee 1,353,760,605 1,153,632,058
Margin against time loan to issue pay order 100,968,639 60,032,178
Deposit held against FDBP/IDBP, export bills etc. 17,968,410 61,711,823
FC held against EDF L/C and LTFF 17,030,469,804 12,794,398,617
Accounts payable 5,331,896 2,661,165
Telegraphic transfer 780,290 1,155,260
Margin on acceptance 6,261,054,275 5,606,379,466
Remittance awaiting disposal 6,787,264 8,665,791
Others 238,115,674 211,639,314
27,866,161,354 22,683,847,529
19.2 Deposits from banks and others
Inter-bank deposits 19.3 10,814,479,860 12,808,254,410
Other deposits 287,506,106,516 257,024,834,259
298,320,586,377 269,833,088,669
19.3 Inter-bank deposits
AB Bank Limited 54,059 2,542,053
Agrani Bank Limited 3,500,000,000 2,000,000,000
Al-Arafa Islami Bank Limited 514,380,491 509,579,016
BASIC Bank Limited - 500,000,000
Bangladesh Krishi Bank 250,000,000 500,000,000
Citibank N.A. 114,722,610 280,631,821
Commercial Bank of Ceylon Plc. 650,000,000 -
Dhaka Bank Limited - 211,789
First Security Islami Bank Limited 160,383 3,147,809
Habib Bank Limited - 200,000,000
IFIC Bank Limited 264,244 259,920
Islami Bank Bangladesh Limited 8,418,107 2,258,232,880
Meghna Bank Limited 4,970 6,765,214
Mercantile Bank Limited 221,567 218,427
Mutual Trust Bank Limited 1,196,746 510,312
NRB Commercial Bank Limited 18,955,006 390,689
Prime Bank Limited 500,000,000 500,000,000
Pubali Bank Limited 500,000,000 -
Rajshahi Krishi Unnayan Bank (RAKUB) 140,000,000 -
Rupali Bank Limited - 1,000,000,000
State Bank of India 400,000,000 -
Sonali Bank Limited 4,000,000,000 2,250,000,000
Shahjalal Islami Bank Limited 451,703 442,850
Standard Chartered Bank 200,000,000 -
Social Islami Bank Limited(SIBL) 329,285 323,177
The Trust Bank Limited 2,855 300,003,926
United Commercial Bank Limited - 1,980,000,000
Uttara Bank Limited - 500,031,250
10,814,479,860 12,808,254,410
392
a bank with vision
2018 2017
Note
Taka Taka
19.4 Sector-wise deposits
Government 8,556,499,639 6,669,198,828
Deposit money banks 10,814,479,860 12,808,254,410
Other public 22,396,797,707 33,099,336,060
Foreign currency 1,359,393,796 1,233,469,083
Private 255,193,415,374 216,022,830,288
298,320,586,377 269,833,088,669
19.5 Unclaimed Deposits and valuables
Payment Order 221,282 952,972
221,282 952,972
19.6 Analysis of residual maturity grouping of deposits
Inter-bank deposits:
Payable on demand 115,926,268 284,854,504
Within one month 58,553,592 4,593,399,906
More than one month but less than six months 10,500,000,000 7,930,000,000
More than six months but less than one year - -
More than one year but less than five years - -
More than five years but less than ten years - -
10,674,479,860 12,808,254,410
Other Deposits:
Payable on demand 5,423,373,732 97,457,839,958
Within one month 39,928,646,408 10,193,683,482
More than one month but less than six months 66,301,561,377 100,979,387,420
More than six months but less than one year 68,761,725,000 20,760,331,750
More than one year but less than five years 93,513,400,000 21,625,933,190
More than five years but less than ten years 13,717,400,000 6,007,658,459
287,646,106,517 257,024,834,259
298,320,586,377 269,833,088,669
20 Consolidated other liabilities
Southeast Financial Services (Australia) Pty Ltd 787,383 1,566,828
32,106,699,928 26,046,455,982
32,102,455,720 26,044,632,850
21 Other liabilities
Provision for loans and advances/investments 21.1 13,283,300,001 10,069,290,980
Interest suspense account 21.2 5,995,927,271 4,402,732,281
Provision for taxation 21.3 5,030,480,782 5,163,120,617
Obligation under finance lease 21.4 1,291,340 3,768,470
Accrued expenses 14,467,280 8,600,057
Interest payable on borrowings 393,432,740 110,226,431
Accounts payable-Bangladesh Bank 276,010,148 129,843,978
Accounts payable-others 1,560,523,945 1,291,009,221
Provision for diminution in the market value of share 21.7 799,726,500 419,055,000
Other provisions 21.5.1 1,456,946,800 1,610,746,800
Unearned income 380,676,896 360,014,159
Branch adjustment 21.6 1,576,218,799 1,160,994,811
Withholding tax 995,501,554 1,002,360,911
Provision for audit fees 1,000,000 1,000,000
31,765,504,056 25,732,763,716
393
2018 2017
Note
Taka Taka
21.1 Provision for loans and advances/investments
A. General
Balance as at 1 January 3,440,610,024 2,430,000,000
Add: Provision made during the year
On standard loans and advances/investments etc. (70,937,446) 982,841,369
On Special Mention Account (SMA) (48,272,578) 27,768,655
(119,210,024) 1,010,610,024
Less: Provision no longer required - -
Balance as at 31 December 3,321,400,000 3,440,610,024
B. Specific
Less: Fully provided debt write off during the year (2,044,946,488) (1,030,097,472)
Add: Recoveries of amounts previously written off 404,812,584 154,213,601
Add: Specific provision for the year 4,974,285,948 3,781,324,521
Less: Recoveries and provisions no longer required - -
Less: Interest waiver during the year (933,000) (5,044,000)
Net charge to Profit & Loss A/C 3,333,219,044 2,900,396,650
C. Total provision on loans and advances/investments (A+B) 13,283,300,001 10,069,290,980
21.2 Interest suspense account
Add: Amount transferred to interest suspense account during the year 4,018,996,469 2,210,542,837
8,421,728,750 5,760,066,669
Less: Amount of interest suspense recovered during the year 1,896,024,473 1,023,651,441
Amount written off during the year 493,566,266 256,697,755
Interest waiver during the year 36,210,740 76,985,192
2,425,801,479 1,357,334,388
21.3 Provision for taxation
Provision for current tax 21.3.1 3,885,486,907 3,806,832,079
Deferred tax liabilities 21.3.2 1,144,993,875 1,356,288,538
5,030,480,782 5,163,120,617
21.3.1 Provision for current tax
Provision
Settlement/adjustments for previous years (4,682,093,254) -
Provision made for the current year 21.3.1.1 2,200,000,000 2,830,000,000
(A) Balance as at 31 December 14,079,760,869 16,561,854,123
Less: Advance tax
Paid during the year 2,172,386,062 2,630,312,076
Settlement/adjustments for previous years (4,733,134,144) -
(B) Balance as at 31 December 10,194,273,962 12,755,022,044
(A-B) Net balance as at 31 December 3,885,486,907 3,806,832,079
21.3.1.1 Provision made for the current year
Provision made during the year 2,340,000,000 2,830,000,000
Less: Excess provision adjustment for prior years (140,000,000) -
2,200,000,000 2,830,000,000
Provision for current tax of Tk. 2,200,000,000 has been made @ 37.50% as prescribed by Finance Act 2018 of
the accounting profit made by the Bank after considering some of the add backs to income and disallowances
of expenditure as per the Income Tax Ordinance and Rules 1984 and in compliance of para 46 of IAS 12
“Income Tax”.
394
a bank with vision
2018 2017
Note
Taka Taka
21.3.2 Deferred tax liabilities
Deferred tax liabilities are attributable to the following:
Revaluation reserve of land 615,761,213 615,761,213
Revaluation reserve of buildings 125,911,051 125,911,051
Fixed assets- except land and revaluation reserve of
buildings 21.3.3.1 390,536,360 425,536,360
Revaluation reserve of HTM securities 21.3.3.2 7,662,748 5,611,947
Revaluation reserve of HFT securities 21.3.3.3 5,122,503 183,467,967
1,144,993,875 1,356,288,538
Deferred tax is calculated using the tax rates expected to apply in the periods in which the assets will be
realised or the liabilities settled, based on tax rates and laws enacted, by the balance sheet date. Following are
the descriptions for each individual item of the deferred tax that are recognised by the Bank as a temporary
difference with expected time of realisation.
Revaluation reserve of land
As the land is not depreciable and as per local tax rules revaluation gain is not taxable. However, the tax office
will charge taxes on capital gain which is the same amount of revaluation gain whether recovered through use
or sale. Hence a taxable temporary difference arises against which the Bank recognises deferred tax liabilities.
However, the outstanding amount of deferred tax will be automatically released with the disposal of the assets.
Revaluation reserve of buildings
Buildings are depreciable assets. Its revalued carrying amount will be recovered through use and this will
generate taxable income which exceeds the depreciation that will be allowable for tax purposes in future
periods. As a result taxable temporary difference will arise.
Fixed assets- except land and revaluation reserve of buildings
Accounting depreciation is not tax allowable expenses. Rather, the tax office will allow tax depreciation as per
3rd Schedule of the Income Tax Ordinance 1984. Hence a temporary difference arises due to the different
depreciation rates and methodology against which the Bank recognizes deferred tax. This is an ongoing item
as there is a difference between the tax depreciation rate and the accounting depreciation rate. However, the
outstanding amount of deferred tax will be automatically released with the expiry of the economic useful life of
the assets.
Revaluation reserves of HTM and HFT securities
Deferred tax relating to unrealised interest on the revaluation of Held to Maturity (HTM) and Held for Trading
(HFT) securities is recognised directly in other reserves as a part of equity and is subsequently recognised in
the profit and loss account on maturity of the securities. The deferred tax recognised against this will be fully
reversed at the maturity of all related securities.
2018 2017
Note
Taka Taka
21.3.3 Movement of deferred tax liabilities
Provision made for deferred tax liabilities
Charged to profit and loss account (35,000,000) 150,000,000
Charged to revaluation reserve 2,050,800 130,212,148
(32,949,200) 280,212,148
1,323,339,339 1,671,726,791
Adjustment made during the year for revaluation reserve (178,345,464) (315,438,253)
21.3.3.1 Deferred tax on fixed assets- except land and revaluation
reserve of buildings
Balance as at 1 January 425,536,360 275,536,360
Charge to profit and loss account (35,000,000) 150,000,000
Balance as at 31 December 390,536,360 425,536,360
395
2018 2017
Note
Taka Taka
21.3.3.2 Deferred tax on revaluation reserve of HTM securities
Charge to revaluation reserves 2,050,800 1,551,424
Adjustment during the year - -
21.3.3.3 Deferred tax on revaluation reserve of HFT securities
Charge to revaluation reserves - 128,660,724
Adjustment during the year (178,345,464) (315,438,253)
21.4 Obligation under finance lease
Addition during the year - 1,707,240
3,768,470 11,973,183
Adjustment during the year (2,477,131) (8,204,713)
21.4.1 Aging analysis of liabilities under finance lease
Minimum lease Financial charge Principal
payment for future periods outstanding
Taka Taka Taka
2018
Payable within 1 year 599,772 176,462 423,310
Payable more than 1 year but less than 2 years 599,772 103,538 496,234
Payable more than 2 years but less than 5 years 399,848 28,053 371,795
1,599,392 308,053 1,291,340
2017
Payable within 1 year 2,918,069 440,938 2,477,131
Payable more than 1 year but less than 2 years 599,772 176,462 423,310
Payable more than 2 years but less than 5 years 999,620 131,591 868,029
4,517,461 748,991 3,768,470
21.5 Other provisions charged to profit and loss

Provision for other assets 21.5.1 (A) 70,000,000 -
Provision for good borrowers 21.5.1 (B) - 20,000,000
Provision for off-balance sheet exposures 21.5.1 (C) (223,800,000) 285,500,000
(153,800,000) 305,500,000
21.5.1 Other Provisions
A) Provision for other assets
Addition during the year 70,000,000 -
233,735,000 163,735,000
B) Provision for good borrowers
Addition during the year - 20,000,000
22,011,800 43,000,000
Adjustment during the year - (20,988,200)
396
a bank with vision
2018 2017
Note
Taka Taka
C) Provision for off-balance sheet exposures

Provision made during the year - 285,500,000
1,425,000,000 1,425,000,000
Adjustments made during the year (223,800,000) -
D) Total other provisions (A+B+C) 1,456,946,800 1,610,746,800

21.6 Branch adjustment (credit)
General accounts debit 1,451,973,000 2,837,208,189
General accounts credit 3,028,191,799 3,998,203,000
1,576,218,799 1,160,994,811
Branch adjustment account represents outstanding interbranch and head office transactions (net) originated
but yet to be responded at balance sheet date. However, the un-respondent entries of 31 Dec 2018 are given
below:
No. of unrespondent entries Unrespondent entries (Taka)
Debit Credit Debit Credit
Upto 3 months 540 1,275 1,451,973,000 3,028,191,799
Over 3 months but within 6 months - - - -
Over 6 months but within 1 year - - - -
Over 1 year but within 5 years - - - -
540 1,275 1,451,973,000 3,028,191,799
21.7 Consolidated provision for diminution in value of investments

Southeast Bank Limited 413,060,983 (256,602,166)
Southeast Bank Capital Services Limited - 39,388,168
413,060,983 (217,213,998)
21.7.1 Provision for diminution in value of investments
Adjustments made for loss of sales of shares during the year (32,389,483) (230,048,458)
Provision made during the year (Charge to the profit and loss) 413,060,983 (256,602,166)
22 Share Capital
22.1 Authorised
1,500,000,000 Ordinary shares of Tk 10 each 15,000,000,000 15,000,000,000
22.2 Issued, subscribed and paid up
378,164,970 ordinary shares of Tk 10 each issued for cash 3,781,649,700 3,781,649,700
676,327,732 ordinary shares of Tk 10 each issued as bonus shares 6,763,277,320 5,387,852,060
1,054,492,702 10,544,927,020 9,169,501,760
22.2.1 Reconciliation of number of shares
Issue of bonus shares 137,542,526 -
Stock split (1:10) - -
Balance as at 31 December 1,054,492,702 916,950,176
397
2018 2017
Note
Taka Taka
22.3 Dividends
The following dividends were declared and paid by the Bank for the year ended 31 December.
1.5 Taka (Stock Dividend) per ordinary share for 2017 and 2.00
Taka per (Cash dividend) ordinary share for 2016 1,375,425,259 1,833,900,352
After the end of the reporting period, the following dividends were proposed by the directors. The dividends
have not been provided for and no tax consequences.
1.00 Taka (Stock dividend) per ordinary share for
2018 and 1.5 Taka (Stock dividend) per ordinary
share for 2017 1,054,492,702 1,375,425,259
22.4 Share capital at a glance from inception
Number of Capital Cumulative

Year Particulars
shares amount (Taka) (Taka)
1995 Opening / Sponsors Capital 1,000,000 100,000,000 100,000,000
1996 None - - 100,000,000
1997 25% Stock Dividend 250,000 25,000,000 125,000,000
1998 20% Stock Dividend 250,000 25,000,000 150,000,000
1999 Initial Public Offer (IPO) 1,500,000 150,000,000 300,000,000
2000 10% Stock Dividend 300,000 30,000,000 330,000,000
2001 10% Stock Dividend 330,000 33,000,000 363,000,000
2002 10% Stock Dividend 363,000 36,300,000 399,300,000
Right Issue @ 1:2 1,650,000 165,000,000 564,300,000
2003
20% Stock Dividend 1,128,600 112,860,000 677,160,000
2004 30% Stock Dividend 2,031,480 203,148,000 880,308,000
2005 20% Stock Dividend 1,760,616 176,061,600 1,056,369,600
Right Issue @1:1 10,563,696 1,056,369,600 2,112,739,200
2006
8% Stock Dividend 1,690,191 169,019,100 2,281,758,300
2007 25% Stock Dividend 5,704,395 570,439,500 2,852,197,800
2008 20% Stock Dividend 5,704,395 570,439,500 3,422,637,300
2009 35% Stock Dividend 11,979,230 1,197,923,000 4,620,560,300
Right Issue @1:2 23,102,801 2,310,280,100 6,930,840,400
2010
20% Stock Dividend 13,861,680 1,386,168,000 8,317,008,400
Stock split (1:10) 748,530,756 - 8,317,008,400
2011
5% Stock Dividend 41,585,042 415,850,420 8,732,858,820
2012 None - - 8,732,858,820
2013 5% Stock Dividend 43,664,294 436,642,940 9,169,501,760
2014 None - - 9,169,501,760
2015 None - - 9,169,501,760
2016 None - - 9,169,501,760
2017 15% Stock Dividend 137,542,526 1,375,425,259 10,544,927,020
398
a bank with vision
22.5 Classification of shareholders by holding

Number of holders % of total holding
2018 2017 2018 2017
Less than 500 shares 9,048 10,398 0.15 0.21
501 to 5,000 shares 17,794 19,181 3.14 3.83
5,001 to 10,000 shares 2,984 2,982 1.99 2.38
10,001 to 20,000 shares 1,903 1,641 2.52 2.55
20,001 to 30,000 shares 646 540 1.50 1.45
30,001 to 40,000 shares 328 241 1.07 0.92
40,001 to 50,000 shares 173 197 0.75 1.00
50,001 to 1,00,000 shares 421 367 2.77 2.97
1,00,001 to 10,00,000 shares 419 370 11.57 12.33
Over 10,00,000 shares 135 121 74.54 72.36
33,851 36,038 100.00 100.00
22.6 Initial public offer (IPO)

Out of the total issued, subscribed and fully paid up capital of the bank 1,500,000 (after stock split: 15,000,000)
ordinary shares of Tk 100 (after stock split: Tk. 10) each amounting to Tk 150,000,000 was raised through public
offering on shares in 1999.
22.7 Name of the Directors and their shareholdings in the year 2018
Sl. As at As at
Name of the directors Status
no. 1 January 2018 31 December 2018
1 Mr. Alamgir Kabir, FCA Chairman 19,944,672 23,688,872
2 Mrs. Duluma Ahmed Vice Chairperson 19,082,742 21,945,153
3 Mr. M. A. Kashem Director 20,307,060 23,353,119
4 Mr. Azim Uddin Ahmed Director 25,490,735 29,314,345
5 Mrs. Jusna Ara Kashem Director 18,339,525 21,090,453
6 Mr. Md. Akikur Rahman Director 18,443,731 21,410,290
7 Mrs. Rehana Rahman Director 18,844,145 21,670,766
8 Mrs. Sirat Monira Director 120,547 138,629
9 Mr. Syed Sajedul Karim Independent Director - -
10 Dr. Quazi Mesbahuddin Ahmed Independent Director - -
11 Mr. M. Kamal Hossain Managing Director - -
140,573,157 162,611,627
22.8 Capital to Risk weighted Asset Ratio (CRAR) of the Bank
The calculation of CRAR has been done as per BRPD Circular no. 07 dated 31 March 2014 and the Basel-III
guideline December 2014 vide BRPD Circular no. 18 dated 21 December 2014.
2018 2017
Note Taka Taka
Common equity Tier-1 capital (Going Concern Capital)
Paid up capital 10,544,927,020 9,169,501,760
Share premium - -
Other reserve 25 247,650,000 247,650,000
23,690,537,177 21,227,504,958
Add: Additional Tier 1 capital - -
Less: Regulatory adjustments 124,419,075 148,251,669
A) Total common equity Tier 1 capital 23,566,118,102 21,079,253,289
399
2018 2017
Note
Taka Taka
Tier 2 Capital (Gone -Concern Capital)
General provision maintained against unclassified loan/investments 3,321,400,000 3,440,610,024
General provision on off-balance sheet items 1,201,200,000 1,425,000,000
Asset revaluation reserve 2,101,404,750 2,101,404,750
Revaluation reserve of Government securities 234,027,984 234,027,984
17,058,032,734 14,001,042,758
Less: Regulatory adjustments 1,868,346,187 1,401,259,640
Total Tier 2 capital 15,189,686,547 12,599,783,118
B) Total capital 38,755,804,649 33,679,036,407
C) Risk Weighted Assets (RWA)
Credit Risk
On-balance sheet 231,060,110,522 226,671,124,618
Off-balance sheet 47,825,004,244 50,312,116,068
278,885,114,766 276,983,240,686
Market risk 9,825,644,530 12,834,521,890
Operational risk 22,128,575,152 20,020,349,602
Total RWA 310,839,334,448 309,838,112,178
D) Required common equity Tier 1 Capital 13,987,770,050 13,942,715,048
Required Tier 1 Capital 6% (2017: 6%) of RWA) 18,650,360,067 18,590,286,731
E) Required total capital 11.875% (2017: 11.25%) of RWA 36,912,170,966 34,856,787,620
F) Surplus common equity Tier 1 Capital(A-D) 9,578,348,052 7,136,538,241
G) Surplus total capital (B-E) 1,843,633,684 (1,177,751,213)

Capital to risk-weighted assets ratio:
On common equity Tier 1 capital against standard of minimum 4.5% 7.58% 6.80%
On Tier 1 capital - against standard of minimum 6% 7.58% 6.80%
On total capital - against standard of minimum 11.875% (2017:11.25%) 12.47% 10.87%
22.9 Leverage Ratio of the Bank
A) Tier 1 capital considering all regulatory adjustments 23,566,118,102 21,079,253,289
B) On-balance sheet exposure 372,342,421,027 333,842,502,292
C) Off-balance sheet exposure 85,766,147,287 74,492,727,609
D) Deduction from on and off balance sheet exposure
/Regulatory adjustment 124,419,075 148,251,670
E) Total exposure (B+C-D) 457,984,149,240 408,186,978,231
Leverage ratio (A/E) 5.15% 5.16%
Liquidity coverage ratio 123.37% 102.81%
Net stable funding ratio 115.18% 115.55%
22.10 Capital to Risk weighted Asset Ratio (CRAR) of the Group
Common Equity Tier 1 Capital
Paid up capital 10,544,927,020 9,169,501,760
Share premium - -
Other reserve 25 247,650,000 247,650,000
Non- controlling interest 29 10,070,512 10,050,803
23,794,844,933 21,313,601,275
Add: Additional Tier 1 capital - -
Less: Regulatory adjustments 124,419,075 148,251,669
A) Total common equity Tier 1 capital 23,670,425,858 21,165,349,606
400
a bank with vision
2018 2017
Note
Taka Taka
Tier 2 capital (Gone- Concern Capital)
General provision maintained against unclassified loan/investments 3,321,400,000 3,440,610,024
General provision on off-balance sheet items 1,201,200,000 1,425,000,000
Asset revaluation reserve 2,101,404,750 2,101,404,750
Revaluation reserve of Government securities 234,027,984 234,027,984
17,058,032,734 14,001,042,758
Less: Regulatory adjustments 1,868,346,187 1,401,259,640
Total Tier 2 capital 15,189,686,547 12,599,783,118
B) Total capital 38,860,112,405 33,765,132,724

C) Risk weighted assets (RWA)
Credit risk
On-balance sheet 227,901,721,877 223,592,214,199
Off-balance sheet 47,825,004,244 50,312,116,068
275,726,726,121 273,904,330,267
Market risk 15,778,852,594 17,439,506,326
Operational risk 22,455,343,921 20,213,502,052
Total RWA 313,960,922,637 311,557,338,645
D) Required common equity Tier 1 capital 14,128,241,519 14,020,080,239
Required Tier 1 capital 6% (2017: 6%) of RWA 18,837,655,358 18,693,440,319
E) Required total capital 11.875% (2017: 11.25%) of RWA 37,282,859,563 35,050,200,598
F) Surplus common equity Tier 1 capital (A-D) 9,542,184,339 7,145,269,367
G) Surplus total capital (B-E) 1,577,252,842 (1,285,067,874)

Capital to risk- weighted asset ratio:
On common equity Tier 1 capital - against standard of minimum 4.5% 7.54% 6.79%
On Tier 1 capital - against standard of minimum 6% 7.54% 6.79%
On total capital - against standard of minimum 11.875% (2017:11.25%) 12.38% 10.84%
22.11 Leverage ratio of the Group
A) Tier 1 capital considering all regulatory adjustments 23,670,425,858 21,165,349,606
B) On-balance sheet exposure 372,823,178,880 334,210,339,400
C) Off-balance sheet exposure 85,766,147,287 74,492,727,609
D) Deduction from on and off balance sheet exposure
/ Regulatory adjustment 124,419,075 148,251,669
E) Total exposure (B+C-D) 458,464,907,092 408,554,815,340
Leverage ratio (A/E) 5.16% 5.18%
Liquidity coverage ratio 123.37% 102.81%
Net stable funding ratio 115.18% 115.55%
23 Statutory reserve
Addition during the year 924,153,565 -
24 Revaluation reserve
Revaluation reserve of land and buildings:
Addition during the year - -
4,944,481,764 4,944,481,764
Deferred tax liabilities (741,672,265) (741,672,265)
401
2018 2017
Note
Taka Taka
Revaluation reserve on HTM securities:
Addition during the year 5,468,801 3,878,561
19,118,815 13,650,014
19,118,815 13,650,014
Revaluation reserve on HFT securities:
Addition during the year 1,143,283,843 476,312,385
1,650,143,297 1,401,926,128
Adjustment during the year (1,498,484,459) (895,066,673)
151,658,839 506,859,455
4,360,801,902 4,534,239,054
25 Other reserve
General reserve:
Addition during the year - -
26 Foreign currency translation reserve
(Adjustments)/addition during the year 14,775,840 (10,306,481)
The translation reserve comprises all foreign currency differences arising from the translation of the financial
statements of foreign operations.
27 Consolidated retained earnings
Southeast Bank Capital Services Limited 276,328 (10,468,432)
Southeast Financial Services (UK) Ltd (16,615,563) (18,001,423)
Southeast Financial Services (Australia) Pty Ltd (17,893,249) (18,576,974)
Less: Elimination for impairment of investment in subsidiary 48,560,048 85,560,048
2,898,043,836 2,716,398,712
28 Retained earnings
Currency translation differences 7,264,394 17,226,310
Prior year adjustment - 166,906,342
2,647,617,592 3,355,956,847
Retained surplus for the year 1,531,614,259 1,118,296,703
4,179,231,851 4,474,253,550
Less:
Issue of bonus share 1,375,425,259 -
Cash dividend paid - 1,833,900,352
1,375,425,259 1,833,900,352
Retained earnings carried forward 2,803,806,592 2,640,353,198
402
a bank with vision
2018 2017
Note
Taka Taka
29 Non-controlling interest
Paid up capital 5,500,000,000 5,500,000,000
Retained earnings 276,835 (10,487,634)
Total net assets 5,500,276,835 5,489,512,366
Non-controlling interest 0.183091% (2017:0.183091%) of net assets 10,070,512 10,050,803

Non-controlling interest arises only for Southeast Bank Capital Services Limited since all other subsidiaries are
wholly owned by Southeast Bank Limited.
30 Contingent liabilities
30.1 Acceptances and endorsements
Acceptance under Letters of Credit (LC) - other than back to back 44,423,696,274 39,997,385,993
Acceptance under Letters of Credit -back to back 19,430,066,710 17,141,146,992
63,853,762,984 57,138,532,985
30.2 Letters of guarantee
Local 18,086,603,871 14,928,991,500
Foreign 1,111,389,170 995,971,664
19,197,993,041 15,924,963,164
30.2.1 Balance for which the Bank is contingently liable
in respect of guarantee issued favouring:
Directors or officers 4,783,000 4,783,000
Government - -
Banks and other financial institutions 46,205,078 42,916,540
Others 19,147,004,963 15,877,263,624
19,197,993,041 15,924,963,164
30.3 Irrevocable Letters of Credit (L/C)
Back to back L/C 16,060,837,527 16,719,794,155
Others 20,313,721,780 27,475,343,281
36,374,559,306 44,195,137,436
30.4 Bills for collection
Local 13,508,211,848 11,767,568,379
Foreign 11,156,714,966 10,899,018,477
24,664,926,813 22,666,586,856
30.5 Other contingent liabilities
Value of Bangladesh Sanchaypatra & others 1,413,684,000 1,744,473,000
31 Income statement
Income:
Interest, discount and similar income 28,874,960,097 22,838,457,502
Dividend income 130,239,122 194,053,603
Fees, commission and brokerage 2,210,370,584 2,016,554,343
Gains less losses arising from dealing securities (79,827,714) (282,508,062)
Gains less losses arising from investment securities 88,341,080 120,732,297
Gains less losses arising from dealing in foreign currencies 1,328,341,566 1,344,124,999
Other operating income 947,056,334 821,156,590
33,499,481,069 27,052,571,272
Expenses:
Interest, fees and commission 18,775,867,174 13,378,247,565
Administrative expenses 3,448,714,783 3,117,829,896
Other operating expenses 1,209,933,472 1,299,784,648
Depreciation on banking assets 329,860,908 317,580,081
23,764,376,338 18,113,442,190
Income over expenses 9,735,104,731 8,939,129,082
403
2018 2017
Note
Taka Taka
32 Consolidated interest income/profit on investments
Southeast Financial Services (UK) Ltd - -
Southeast Financial Services (Australia) Pty Ltd - 38
23,978,003,956 17,411,728,869
Less: Inter company balance eliminated 166,849 11,178,794
23,977,837,107 17,400,550,075
33 Interest income/profit on investments
Interest on loans and advances (Conventional Banking):
Interest on loans and advances 21,875,787,034 16,097,860,717
Interest on placement with other banks and financial institutions 473,435,429 164,342,052
Interest on foreign currency balances 121,469,232 57,142,303
22,470,691,694 16,319,345,071
Profit on investment (Islamic Banking):
Profit on investments 1,480,929,380 1,049,413,515
Profit on placement with other banks 68,783 16,146,229
1,480,998,163 1,065,559,745
23,951,689,857 17,384,904,816
34 Consolidated interest paid/profit shared on deposits and
borrowings etc.
18,778,064,156 13,384,038,791
Less: Inter company balance eliminated 166,849 11,178,794
18,777,897,307 13,372,859,997
35 Interest paid/profit shared on deposits and borrowings etc.
Interest paid on deposits (Conventional Banking):
Interest on deposits 15,988,578,364 11,370,686,362
Interest on borrowings 1,487,780,085 1,049,743,814
Interest on repurchase agreement (repo) 2,415,850 14,011,606
Interest on refinance 4,940,677 4,618,683
Interest on foreign bank accounts 2,704,430 683,543
17,486,419,405 12,439,744,008
Profit shared on deposits (Islamic Banking):
Profit paid on deposits 1,206,982,422 856,271,639
Profit on refinance borrowings 82,465,347 82,231,918
1,289,447,769 938,503,557
18,775,867,174 13,378,247,565
36 Consolidated investment income
5,129,753,568 5,586,901,452
Less: Inter company balance eliminated - 16,253,055
5,129,753,568 5,570,648,397
37 Investment income
Interest income from Government securities 37.1 4,340,846,226 5,114,905,070
Capital gain on Government securities 37.2 1,094,874,269 694,421,153
Revaluation gain (loss) on Government securities 37.3 (1,174,701,983) (976,929,215)
Dividend on investment in shares 130,239,122 194,053,603
Gain on sale of investment in shares 88,341,080 120,732,297
Interest income from investment in bonds 582,424,014 338,647,616
5,062,022,727 5,485,830,524
404
a bank with vision
2018 2017
Note
Taka Taka
37.1 Interest income from Government securities
Interest on treasury bills 10,670,572 7,858,032
Interest on treasury bonds/T&T bonds 4,862,083,421 6,657,538,978
Interest on Bangladesh Bank bills 292,032 3,275,000
4,873,046,025 6,668,672,010
Interest expenses on treasury bills - (23,687)
Interest expenses on treasury bonds (532,199,800) (1,553,743,253)
(532,199,800) (1,553,766,940)
Net interest income from Government securities 4,340,846,226 5,114,905,070
37.2 Capital gain on Government securities
Capital gain on treasury bills 769,439 1,273,366
Capital gain on treasury bonds/T&T bonds 1,223,140,217 841,076,080
Capital gain on BB bills - 268,536
1,223,909,656 842,617,982
Capital loss on treasury bills (741,259) (671,113)
Capital loss on treasury bonds/T&T bonds (128,294,128) (147,525,716)
(129,035,387) (148,196,829)
Net capital gain on Government securities 1,094,874,269 694,421,153
37.3 Revaluation gain (loss) on Government securities
Revaluation gain on treasury bills - -
Revaluation gain on treasury bonds 42,921,719 -
Revaluation gain on Bangladesh Bank bills - -
42,921,719 -
Revaluation loss on treasury bills (13,423,235) (227,635)
Revaluation loss on treasury bonds (1,204,193,310) (976,433,044)
Revaluation loss on Bangladesh Bank bills (7,157) (268,536)
(1,217,623,702) (976,929,215)
Net revaluation gain (loss) on Government securities (1,174,701,983) (976,929,215)
38 Consolidated commission, exchange and brokerage

Southeast Bank Capital Services Limited 325,000 535,000
3,652,775,278 3,462,929,452
39 Commission, exchange and brokerage
Commission and brokerage 2,210,370,584 2,016,554,343
Exchange gain 39.1 1,328,341,566 1,344,124,999
3,538,712,150 3,360,679,342
39.1 Exchange gain
Exchange gain from revaluation/trade of foreign currency 1,292,788,635 1,294,364,761
Exchange gain from credit card 35,552,931 49,760,238
1,328,341,566 1,344,124,999
40 Consolidated other operating income
Southeast Bank Limited 41 947,056,334 821,156,590
Southeast Financial Services (UK) Ltd 2,494,536 -
Southeast Exchange Company (South Africa) Pty Ltd - 162,609
983,721,805 876,049,385
979,447,885 871,775,465
405
2018 2017
Note
Taka Taka
41 Other operating income
Remittance fees 17,674 76,574
Service and incidental charges 99,288,754 123,578,606
Other fees - telephone and postage 58,491,405 56,000,865
Income from ATM services 43,787,777 32,846,965
Income from credit card 150,609,574 116,782,148
Income from retail banking 6,745,804 6,428,887
Other Fees - SWIFT and others 222,203,670 202,921,414
Gain on sale of fixed assets 41.1 142,832 -
Income from telecash 783,903 280,047
Miscellaneous income 364,984,941 282,241,084
947,056,334 821,156,590
41.1 Gain on sale of fixed assets
Cost:
Motor vehicles 16,685,000 -
Furniture and fixtures 4,401,630 -
Office appliances 99,369 -
ATM 50,500 -
Electrical appliances 8,088,362 -
House Electrical appliances 50,000 -
29,374,861 -
Accumulated depreciation:
Motor vehicles 15,927,016 -
Furniture and fixtures 2,433,336 -
Office appliances 91,000 -
ATM 35,279 -
Electrical appliances 7,230,843 -
House Electrical appliances 23,867 -
25,741,341 -
Written down value 3,633,520 -
Sale proceeds of the above fixed assets 3,776,352 -
Gain on sale of fixed assets 142,832 -
42 Consolidated salaries and allowances
2,026,521,807 1,880,629,864
43 Salaries and allowances
Basic salary 1,007,663,400 960,086,331
Allowances 597,803,225 566,671,872
Bonus 304,014,470 248,786,742
Provident fund 82,567,935 77,773,458
1,992,049,030 1,853,318,403
44 Consolidated rent, taxes, insurance, electricity etc.
Southeast Bank Limited 45 1,015,140,607 917,262,049
1,035,840,309 935,898,273
1,031,566,389 931,624,353
406
a bank with vision
2018 2017
Note
Taka Taka
45 Rent, taxes, insurance, electricity etc.
Rent, rates and taxes 662,528,071.77 617,882,593.00
Insurance 243,894,399 200,424,697
Electricity and lighting 108,718,136 98,954,759
1,015,140,607 917,262,049
46 Consolidated postage, stamp, telecommunication etc.
Southeast Financial Services (UK) Ltd 423,311 274,157
Southeast Exchange Company (South Africa) Pty Ltd 744,072 468,375
182,353,593 176,224,992
47 Postage, stamp, telecommunication etc.
Postage 57,125,786 54,317,413
Telephone /Telex 16,566,031 15,019,822
Electronic banking service 57,919 19,200
FC Charge (Nostro) 5,189,460 5,646,541
VSAT on-line 45,543,544 46,864,229
Reuters services 1,612,445 2,076,740
181,005,852 175,303,570
48 Consolidated stationery, printing, advertisements etc.
165,642,288 149,545,742
49 Stationery, printing, advertisements etc.
General and office stationery 78,530,832 63,769,627
Printing and security stationery 36,103,821 30,205,473
Publicity and advertisement 47,979,807 53,340,450
162,614,460 147,315,550
50 Managing Director's salary and fees
Basic salary 4,020,000 3,928,757
House rent 1,740,000 1,534,657
House maintenance 900,000 866,408
Leave fare concession 1,200,000 1,262,904
Utility 720,000 689,375
Special allowance 420,000 440,575
Provident Fund 402,000 276,747
Bonus 670,000 1,038,000
10,072,000 10,037,423
51 Consolidated directors' fees
Southeast Bank Limited (Note 52) 52 2,718,099 3,575,203
Southeast Financial Services (UK) Limited - -
2,926,099 3,785,203
407
2018 2017
Note
Taka Taka
52 Directors' fees
Directors' fees 2,360,000 2,983,200
Directors' haltage and travelling 358,099 592,003
2,718,099 3,575,203
Each Director is paid TK. 8,000/ per meeting per attendance.
53 Consolidated auditors' fees
Southeast Bank Limited 1,000,000 1,345,000
1,847,371 1,906,893
54 Consolidated depreciation and repair
Depreciation:
390,732,319 376,228,982
Repair:
Southeast Financial Services (Australia) Pty Ltd - -
85,562,313 79,159,553
476,294,631 455,388,535
55 Depreciation and repair of bank's assets
A. Depreciation:
Buildings 57,106,336 59,510,469
Professional and reference books - -
Computer 34,543,455 31,604,261
ATM Booth 25,195,613 21,567,475
Motor vehicles 15,762,177 19,970,225
329,860,908 317,580,081
B. Repair & spare parts:
Office and electrical appliances 33,513,286 29,183,762
Motor vehicles 4,720,176 5,228,293
Repair, maintenance and utilities 38,412,945 36,417,423
84,114,735 78,482,177
Total (C=A+B) 413,975,642 396,062,258
56 Consolidated other expenses
Adjustment for impairment loss of investment in subsidiary 37,000,000 -
1,280,397,900 1,259,769,572
408
a bank with vision
2018 2017
Note
Taka Taka
57 Other expenses
Security and cleaning 199,122,374 170,526,070
Entertainment 90,775,896 130,624,782
Car expenses 213,717,936 207,867,443
Books and periodicals 1,083,090 2,455,921
Subscription 5,772,577 4,515,855
Donation including CSR 174,603,215 210,619,093
Travelling expenses 14,423,981 11,023,278
Finance charge on leased assets 139,653 422,389
Conveyance 14,699,059 13,533,813
Petrol,oil and lubricant 9,402,055 9,631,531
Training/seminar 5,636,562 8,290,347
Uniforms and apparels 3,975,797 4,351,683
Medical expenses 101,692 130,260
Gratuity and othres 295,090,057 263,890,692
Professional expenses 14,287,158 12,741,797
Expenses for CIB report 194,670 865,022
IT enabled services 57.1 46,529,061 33,545,578
Loss on sale of fixed assets - 2,751,504
Expenses regarding credit card 43,029,219 46,219,184
Expenses regarding retail banking & agriculture 47,464,491 60,986,637
Expenses regarding call centre 2,540,476 2,786,845
Expenses relating to ATM services 49,332,614 21,287,699
Expenses regarding mobile banking services-Telecash 4,468,701 3,209,381
Adjustment for Impairment loss from investment in subsidiary (37,000,000) -
Others operating expenses 9,249,918 7,145,228
1,208,640,252 1,229,422,032
Figures of previous year have been rearranged in note no: 57 to conform the current year’s presentation
57.1 Loss on sale of fixed assets
Cost:
Land - 4,123,994
Building - 1,767,426
Furniture and fixtures - 7,407,519
Office appliances - 78,825
ATM - 1,188,175
Electrical appliances - 10,644,578
House Elec. Appliance - 350,000
- 25,560,517
Accumulated depreciation:
Building - 375,233
Furniture and fixtures - 4,778,297
Office appliances - 74,855
ATM - 498,488
Electrical appliances - 9,025,362
House Elec. Appliance - 213,807
- 14,966,042
Written down value - 10,594,475
Sale proceeds of the above fixed assets - 7,842,971
Loss on sale of fixed assets - (2,751,504)
58 Consolidated provision for taxation
Current tax:
2,230,449,370 2,863,298,938
409
2018 2017
Note
Taka Taka
Deferred tax:
Southeast Bank Limited 59 (35,000,000) 150,000,000
(35,000,000) 150,150,332
2,195,449,370 3,013,449,270
59 Provision for taxation
Current tax 2,200,000,000 2,830,000,000
Deferred tax (35,000,000) 150,000,000
2,165,000,000 2,980,000,000
59.1 Reconciliation of effective tax rate (Bank)
2018 % Taka
Profit before taxation as per profit and loss account 4,620,767,824
Income tax as per applicable tax rate 37.50% 1,732,787,934
Factors affecting the tax charge for current year
Non deductible expenses 51.10% 2,361,365,304
Deductible expenses -27.79% (1,284,072,243)
Tax exempt income -8.89% (410,577,851)
Tax savings from reduced tax rates for dividend -0.49% (22,791,846)
Tax savings for capital loss -0.72% (33,127,905)
Change in taxable temporary difference -0.76% (35,000,000)
Excess provision -3.11% (143,583,393)
Total income tax expenses 46.85% 2,165,000,000
2017 % Taka
Profit before taxation as per profit and loss account 4,098,296,703
Income tax as per applicable tax rate 40.00% 1,639,318,681
Factors affecting the tax charge for current year
Non deductible expenses 54.48% 2,232,556,040
Deductible expenses -16.81% (689,075,849)
Tax exempt income -6.78% (277,768,462)
Tax savings from reduced tax rates for dividend -0.95% (38,810,721)
Tax savings from reduced tax rates for capital gain -0.88% (36,219,689)
Change in taxable temporary difference 3.66% 150,000,000
Total income tax expenses 72.71% 2,980,000,000
2018 2017
Note
Taka Taka
60 Consolidated cash received from other operating activities
Southeast Financial Services (UK) Ltd 2,494,536 -
979,305,053 871,775,465
61 Cash received from other operating activities
Other Fees-Telephone and Postage 58,491,405 56,000,865
Income from ATM services 43,787,777 32,846,965
Income from Credit Card 150,609,574 116,782,148
Income from Retail Banking 6,745,804 6,428,887
Income from Telecash 783,903 280,047
946,913,502 821,156,590
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a bank with vision
2018 2017
Note
Taka Taka
62 Consolidated payments for other operating activities
2,479,049,698 2,345,344,075
63 Payments for other operating activities
Rent rates and taxes 997,505,888 835,276,384
Postage 181,005,852 175,303,570
Directors' fees 2,718,099 3,575,203
Repairs 84,114,735 78,482,177
Legal expense 1,293,220 1,553,137
Audit fees 1,000,000 1,345,000
Other expenses 1,171,640,252 1,214,685,933
2,439,278,046 2,310,221,404
64 Consolidated earnings per share
Net profit after tax for the year ended 31 December (Taka) 2,473,189,135 1,168,581,138
Number of ordinary shares outstanding 1,054,492,702 1,054,492,702
Earnings per share (EPS) (Taka) 2.35 1.11
65 Earnings per share
Net profit after tax for the year ended 31 December (Taka) 2,455,767,824 1,118,296,703
Number of ordinary shares outstanding 1,054,492,702 1,054,492,702
Earnings per share (EPS) (Taka) 2.33 1.06
*Earnings per share has been calculated in accordance with IAS 33: Earnings Per Share (EPS). Previous year’s
figures have been adjusted for the issue of bonus shares during the year.
66 Consolidated net assets value (NAV) per share

Net Asset Value (NAV) 28,116,657,718 25,823,646,761
Number of ordinary shares outstanding 1,054,492,702 916,950,176
Net Asset Value (NAV) per share 26.66 28.16
67 Net Assets Value (NAV) per share
Net Asset Value (NAV) 28,051,339,079 25,761,744,012
Net Asset Value (NAV) per share 26.60 28.10
68 Consolidated net operating cash flow per share (NOCFPS)
Net Operating Cash Flow 3,549,513,918 1,715,013,174
Net Operating Cash Flow per share (NOCFPS) 3.37 1.87
69 Net Operating Cash Flow per share (NOCFPS)
Net Operating Cash Flow 3,507,440,847 1,333,459,609
Net Operating Cash Flow per share (NOCFPS) 3.33 1.45
70 Group entities
Country of Ownership interest %

Name of subsidiary
incorporation 2018 2017
Southeast Bank Capital Services Limited Bangladesh 99.816909 99.816909
Southeast Financial Services (UK) Ltd England and Wales 100 100
Southeast Financial Services (Australia) Pty Ltd Australia 100 100
Southeast Exchange Company (South Africa) Pty Ltd South Africa 100 100
411
71 General
71.1 Audit Committee
The Audit Committee is an important functional Committee of the Board of Directors of the Bank. It is assigned
with oversight of financial reporting, disclosure, regulatory compliance and disciplined banking operation
complying with the rules and norms of banking.
Feature and composition
The Audit Committee was last re-constituted by the Board of Directors in its 548th meeting held on July 25, 2018
in accordance with the Corporate Governance Code issued by BSEC on June 03, 2018 and Bangladesh Bank’s
BRPD circular no. 11, dated October 27, 2013. The composition of the present member of the Audit Committee
in 2018 are given below:
Sl.
Name Position Meetings held Attendance Remarks
no.
1 Mr. Syed Sajedul Karim Chairman 5 2 The Members who
(Independent Director) could not attend any
2 Mrs. Duluma Ahmed Member 5 3 meeting were granted
3 Mrs. Jusna Ara Kashem Member 5 5 leave of absence.
4 Mrs. Rehana Rahman Member 5 5
5 Dr. Quazi Mesbahuddin
Member 5 5
Ahmed (Independent Director)
Note: Mr. Syed Sajedul Karim was elected on the 23rd AGM, i.e. 30 June, 2018.
On invitation, Senior Executives of the Bank including the Managing Director, Chief Financial Officer (CFO), Head
of Internal Control and Compliance and Head of Bank’s Risk Management Division attended the meetings to
meet instant queries of the Audit Committee to make its decisions fact-based.
The academic qualifications of the members of the Audit Committee are given below:
Sl.
Name Status with the committee Educational Qualification
no.
1 Mr. Syed Sajedul Karim Independent Chairman M.A., B.A. (Hons)
Director
2 Mrs. Duluma Ahmed Director Member Graduate
3 Mrs. Jusna Ara Kashem Director Member H.S.C
4 Mrs. Rehana Rahman Director Member Graduate
5 Dr. Quazi Mesbahuddin Ahmed Director Member B.A (Hons), M.A., MEC, MSC., PhD. in
Economics
Terms of reference of the Audit Committee
i) Board shall appoint non-executive directors of the Bank as members of the Audit Committee excepting
Chairman of the Board.
ii) Mr. Syed Sajedul Karim, in his capacity as the Independent Director, shall be the Chairman of the Audit
Committee.
iii) Presence of 03 (three) members shall form a quorum.
iv) The quorum of the Audit Committee meeting shall not constitute without at least 1 (one) Independent
Director.
v) The tenure of office of the Audit Committee shall be for 3 years.
vi) The Company Secretary shall act as Secretary to the Audit Committee.
vii) The terms of reference of the Audit Committee shall also be as specified in the BRPD Circular No.11
dated October 27, 2013 of Bangladesh Bank and provisions contained in Notification No.BSEC/
CMRRCD/2006-158/207/Admin/80 of Bangladesh Securities and Exchange Commission (BSEC), dated 03
June, 2018.
viii) Mr. Zakir Ahmed Khan, Advisor of the Bank, shall remain present in every meeting of the Audit Committee
as far as possible and shall give his advice and suggestions for improvement of Bank’s operations and strict
compliance with rules of both the Bank and its regulators.
ix) Chairman of the Audit Committee shall remain present in the Annual General Meeting (AGM).
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a bank with vision
Charter of the Audit Committee

The Audit Committee is constituted by the Board of Directors for the primary purpose of assisting the Board in:
 Overseeing the integrity of the company’s financial statement.
 Overseeing the improvement of corporate governance standard of the company.
 Overseeing the Company’s system of disclosure, internal controls and procedure.
 Overseeing Bank’s internal control over financial reporting.
 Overseeing Bank’s compliance with ethical standards adopted by the company.
 Making reports and recommendations to the Board.
Roles and responsibilities
The role of Audit Committee is to assist the Board in discharging its duties and responsibilities for financial
reporting, effective monituring, corporate governance, internal control, green banking, and environmental and
climate change risks. The added roles of the Audit Committee include, but not limited to, the following:
i)
Overseeing the financial reporting process.
ii) Monitoring choice of accounting policies and principles.
iii) Monitoring Internal Audit and Compliance process including approval of Internal Audit and compliance plan.
iv) Reviewing the Internal Audit and Compliance Report.
v) Overseeing hiring and performance of external auditors.
vi) Reviewing the Annual Financial Statements before submission to the Board for approval or adoption.
vii) Reviewing the quarterly and half-yearly Financial Statements before submission to the Board for approval.
viii) Review the financial statements, in particular the investments made by the subsidiary company.
ix) Reviewing the adequacy of internal audit functions.
x) Reviewing the Management’s Discussion and Analysis before disclosing in the Annual Report.
xi) Overseeing the determination of audit fees based on scope and magnitude, level of expertise deployed
and time required for effective audit and evaluate the performance of external auditors.
xii) Reviewing statement of significant party transactions submitted by the management.
xiii) Reviewing Management Letters/ Letter of Internal Control Weakness issued by Statutory Auditors.
xiv) Reviewing the existing Risk Management Policy and procedures to improve the quality of Bank’s assets portfolio.
xv) Reviewing fund raising through Repeat Public Offering/ Rights Issue and its use and application.
xvi) Monitoring internal control process.
xvii) Maintaining oversight on regulatory compliance, ethics and whistleblower hotlines.
xviii) Reviewing Audit Committee’s own terms of reference.
xix) Reviewing the compliance status of the Minutes of the Audit Committee Meeting.
71.2 Risk Management Committee of the Board of Directors of the Bank
The Bank Company Act-1991 (Amended up to 2018), inter alia, provided for constitution of a Risk Management
Committee of the Board of Directors of every Bank. The committee will scrutinize whether appropriate risk
management measures are being put in place and applied and whether adequate capital and provision is being
maintained against different risks.
Feature and composition
The Risk Management Committee was reconstituted by the Board of Directors in its 548th meeting held on July
25, 2018 in accordance with the BRPD circular no. 11, dated October 27, 2013 issued by Bangladesh Bank. The
composition of the Risk Management Committee in 2018 is given below:
Sl. Meetings
Members Position Attendance Remarks
no. held
1 Mr. Alamgir Kabir, FCA Chairman 4 4 The Members who
2 Mr. M. A. Kashem Member 4 2 could not attend any
3 Mr. Azim Uddin Ahmed Member 4 3 meeting showing
genuine ground were
Mr. Sayed Sajedul Karim
4 Member 4 2 granted leave of
(Independent Director)
absence
Note: Mr. Syed Sajedul Karim was elected in the 23rd AGM, held on 30 June, 2018.
Structure of the Risk Management Committee (RMC)
i) The Chairman of the Board of Directors of the Bank shall be the Chairman of the Risk Management
Committee.
ii) Presence of 3 (three) members in a meeting of the Committee shall form quorum.
iii) The Company Secretary of the Bank shall act as the Secretary to the Risk Management Committee of
the Board.
413
Functions of the Risk Management Committee

The broad functional areas of the Risk Management Committee are the following:
aFormulating and reviewing risk management policies and strategies for sound risk management
bMonitoring implementation of risk management policies and process to ensure effective prevention
and control measures
c Ensuring construction of adequate organizational structure for managing risks within the Bank
d Supervising the activities of Executive Risk Management Committee (ERMC)
e Ensuring compliance of Bangladesh Bank instructions regarding implementation of core risk management
f Ensuring formulation and review of risk appetite, limits and recommending these to Board of
Directors for their review and approval
g Approving adequate record keeping and reporting system and ensuring its proper use
h Holding at least four meetings in a year and more if deemed necessary
i Submitting proposal, suggestions & summary of BRMC meetings to Board of Directors at least on
quarterly basis
j Complying with instructions issued from time to time by the regulatory body
k Analyzing all existing and probable risk issues in the meeting and taking appropriate decisions for
risk mitigation
l Ensuring sufficient and efficient staff resources for RMD
m Establishing standards of ethics and integrity for staff and enforcing these standards
71.3 Related party/(ies)
Particulars of Directors of the Bank as at 31 December:
% of shares % of shares
Sl.
Name of persons Designation Present address as at 31 Dec as at 31 Dec
No.
2018 2017
226, Dilu Road, New
1 Mr. Alamgir Kabir, FCA Chairman 2.25% 2.18%
Eskaton, Dhaka
Vice Plot No.51, Road No.09,
2 Mrs. Duluma Ahmed 2.08% 2.08%
Chairperson Block-F, Banani, Dhaka
73/C, Gulshan Avenue,
3 Mr. M. A. Kashem Director 2.21% 2.21%
Dhaka-1212
Plot No.51, Road No.09,
4 Mr. Azim Uddin Ahmed Director 2.78% 2.78%
Block-F, Banani, Dhaka
73/C, Gulshan Avenue,
5 Mrs. Jusna Ara Kashem Director 2.00% 2.00%
Dhaka-1212
Sonarpara,
6 Mr. Md. Akikur Rahman Director 2.03% 2.01%
Nobarun-227, Sylhet
House No.10, Road No.68,
7 Mrs. Rehana Rahman Director 2.06% 2.06%
Gulshan, Dhaka
226, Dilu Road (Ground
8 Mrs. Sirat Monira Director 0.01% 0.01%
Floor), New Eskaton, Dhaka
Flat No. B/3, Summer
Independent Holiday, House No. 8,
9 Mr. Syed Sajedul Karim - -
Director Road No. 121, Gulshan-1,
Dhaka-1212.
Flat No.C/3, House No.01,
Dr. Quazi Mesbahuddin Independent
10 Road No.36, Gulshan, - -
Ahmed Director
Dhaka-1212
Southeast Bank Limited,
Managing
11 Mr. M. Kamal Hossain Head Office, 52-53 - -
Director
Dilkusha C/A, Dhaka-1000
*As per SEC notification no-SEC/CMRRCD/2009-193/119/Admin/34, dated: 22/11/2011; “Each director other
than independent director(s)/ nominated director(s) of any listed company shall hold minimum 2% (two percent)
shares of the paid-up capital. Otherwise there shall be a casual vacancy of director”. But Mrs. Sirat Monira holds
0.01% of total outstanding share who became Director from B Group i.e. public shareholders.
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a bank with vision
71.3.1 Related party transactions

During the year 2018, the Bank concluded business deals with the following organizations in which the directors had
interest:
Transaction value for the Balance outstanding as at
Name of Nature of year ended 31 December 31 December
Relationship
Organization transaction 2018 2017 2018 2017
Taka Taka Taka Taka
Common Insurance
Asia Insurance Ltd. 138,208,868 81,094,810 - -
Director coverage
Share
Southeast Bank - 5,489,930,000 5,489,930,000
Subsidiary capital
Capital Services
company Interest and
Limited - 11,178,794 - -
loan
Southeast Financial Subsidiary Share
- - 38,493,247 38,493,247
Services (UK) Ltd company capital
Southeast Financial
Subsidiary Share
Services (Australia) - - 25,063,712 25,063,712
company capital
Pty Ltd
Southeast
Exchange Company Subsidiary Share
- - 50,103,110 50,103,110
(South Africa) Pty company capital
Ltd
71.3.2 Loans and advances to directors and their related concern
Nature of Amount in
Name of party Name of the director Related by Status
transaction Taka
Mr. Azim Uddin Ahmed
Monorom Traders Director Bank Guarantee 4,783,000 Regular
Mrs. Duluma Ahmed
Mrs. Duluma Ahmed Mrs. Duluma Ahmed Vice Chairperson Credit Card 85,508.95 Regular
Mr. Azim Uddin Ahmed Mr. Azim Uddin Ahmed Director Credit Card 19,120.89 Regular
Directors'
Ms. Sultana Kashem Mr. M. A. Kashem Credit Card 2,788.64 Regular
daughter
Directors'
Ms. Farzana Azim Mr. Azim Uddin Ahmed Credit Card 411,869.40 Regular
daughter
Mr. Mamun Azim Mr. Azim Uddin Ahmed Directors' son Credit Card 6,771.59 Regular
The Bank complies with the requirements of the section 26 (c) of the Banking Companies Act 1991 (amended
upto 2018) in connection to the transactions executed with persons related to the Banks.
71.4 Events after the reporting period
The Board of Directors in its 570th meeting held on 30 April 2019 has recommended a stock dividend @10%
subject to the approval of the shareholders at the next Annual General Meeting.
71.5 Number of employees

The number of employees engaged for the whole year or part thereof in 2018 who received a total yearly remu-
neration of Tk 36,000 or above were 2797. The total number of employees were 2,704 in 2017.
71.6 Share trading
The Bank started trading its ordinary shares in Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange
(CSE) through CDBL from 16 May 2004. The closing market price of the share as on 31 December 2018 was
Tk.15.60 (2017: Tk.22.20) for each Tk.10 per value of share at DSE and Tk 15.70 (2017: Tk.22.20) for each Tk.10
per value of share at CSE.
415
71.7 Pattern of Shareholding
Breakup of shareholding pattern as per clause 1.5 (xxi) of Securities and Exchange Commission notification
No.SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August 2012 issued under Section 2CC of the Securities
and Exchange Ordinance, 1969, is as follows:
a) Parent/Subsidiary/Associated companies and other related parties (name wise details):
Sl.
Name of the Company Shareholding Structure
no.
1 Southeast Bank Capital Services Limited 99.816909% owned by Southeast Bank Limited
2 Southeast Bank Financial Services (UK) Ltd 100% owned by Southeast Bank Limited
3 Southeast Financial Services (Australia) Pty Ltd 100% owned by Southeast Bank Limited
4 Southeast Exchange Company (South Africa) Pty Ltd 100% owned by Southeast Bank Limited
71.8 Highlights on the overall activities of the Bank
Highlights on the overall activities of the Bank have been furnished in Annexure-A.
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a bank with vision
Southeast Bank Limited Annexure-A
Highlights on the overall activities

Sl. no. Particulars 2018 2017
1 Paid-up capital Taka 10,544,927,020 9,169,501,760
2 Total capital Taka 38,755,804,649 33,679,036,407
3 Capital surplus Taka 1,843,633,684 (1,177,751,213)
4 Total assets Taka 381,094,921,027 338,909,245,125
5 Total deposits Taka 298,320,586,377 269,833,088,669
6 Total loans and advances/investments Taka 265,204,210,559 231,850,999,929

7 Total contingent liabilities and commitments Taka 145,504,926,144 142,496,794,641
8 Credit deposit ratio 81.55% 85.92%

Percentage of classified loans/investments against total
9 5.87% 5.99%
loans and advances/investments
10 Profit after tax and provision Taka 2,455,767,824 1,118,296,703
11 Amount of classified loans/investments Taka 15,558,851,040 13,878,533,441
12 Provisions kept against classified loans/investments Taka 9,961,900,000 6,628,680,956
13 Provision surplus/(deficit) against classified loans/investments Taka 4,043,815,452 2,802,303,797
14 Cost of fund 7.81% 6.80%
15 Interest earning assets Taka 329,182,199,588 288,682,338,956
16 Non-interest earning assets Taka 51,912,721,439 50,226,906,169
17 Return on investment (ROI) 0.74% 0.38%

18 Return on assets (ROA) [PAT/ Average assets] 0.68% 0.35%
19 Income from investment Taka 5,062,022,727 5,485,830,524
20 Capital adequacy 12.47% 10.87%
21 Dividends
a) Stock dividends 10% 15%
b) Cash dividends - -
22 Earnings per share Taka 2.33 1.06
23 Net income per share Taka 2.33 1.06
24 Price earning ratio Times 6.72 17.68
417
418
Annexure-B
Southeast Bank Limited and its Subsidiaries
Consolidated Liquidity Statement
(Assets and liabilities maturity analysis)
Up to 1 month 1-3 months 3-12 months 1-5 years Above 5 years Total
Particulars
Assets:
Cash in hand 3,598,852,097 3,598,852,097
Balance with other banks and financial institutions 6,028,034,039 2,373,000,000 200,000,000 15,749,975,574 24,351,009,613
Money at call and on short notice 6,897,100,000 6,897,100,000
Investments 498,955,791 1,607,800,000 8,230,800,000 30,097,800,000 25,174,196,642 65,609,552,433
Loans and advances/investments 35,920,100,000 42,398,300,000 93,389,800,000 55,815,500,000 40,147,927,805 267,671,627,805
Fixed assets including premises, furniture and fixtures 1,522,727,974 7,814,567,187 9,337,295,160
Other assets 1,585,574,838 496,833,359 49,531,540 1,973,679,916 4,622,119 4,110,241,772
Non banking assets -
Total assets (A) 54,528,616,765 46,875,933,359 101,870,131,540 89,409,707,890 88,891,289,327 381,575,678,880
Liabilities:
Borrowings from Bangladesh Bank, other banks,

financial institutions and agents - 1,321,098,827 7,613,624,456 2,019,500,000 12,057,477,060 23,011,700,343
Deposits 45,540,708,211 49,385,800,000 91,682,300,000 93,513,400,000 18,212,586,377 298,334,794,587
Provision and other liabilities 6,591,547,666 - 20,480,427,272 5,030,480,782 - 32,102,455,720
Total liabilities (B) 52,132,255,877 50,706,898,827 119,776,351,728 100,563,380,782 30,270,063,437 353,448,950,650
Net liquidity gap (A - B) 2,396,360,888 (3,830,965,468) (17,906,220,188) (11,153,672,892) 58,621,225,890 28,126,728,230
Annexure-B.1
Liquidity Statement
(Assets and liabilities maturity analysis)
Up to 1 month 1-3 months 3-12 months 1-5 years Above 5 years Total
Particulars
Assets:
Cash in hand 3,598,790,655 3,598,790,655
Balance with other banks and financial institutions 5,851,302,010 2,373,000,000 200,000,000 15,749,975,574 24,174,277,584
Money at call and on short notice 6,897,100,000 6,897,100,000
Investments 5,138,300 1,607,800,000 8,230,800,000 30,097,800,000 22,942,217,894 62,883,756,194
Loans and advances/investments 35,920,100,000 42,398,300,000 93,389,800,000 55,815,500,000 37,680,510,559 265,204,210,559
Fixed assets including premises, furniture and
1,522,727,974 7,259,635,772 8,782,363,746
fixtures
Other assets 1,585,574,838 385,983,856 49,531,540 1,973,679,916 5,559,652,140 9,554,422,290
Non banking assets - - - - - -
Total assets (A) 53,858,005,802 46,765,083,856 101,870,131,540 89,409,707,890 89,191,991,939 381,094,921,027
Liabilities:
Borrowings from Bangladesh Bank, other banks,
- 1,266,890,000 7,613,624,456 2,019,500,000 12,057,477,060 22,957,491,516
Deposits 45,526,500,000 49,385,800,000 91,682,300,000 93,513,400,000 18,212,586,377 298,320,586,377
Provision and other liabilities 6,254,596,002 - 20,480,427,272 5,030,480,782 - 31,765,504,056
Total liabilities (B) 51,781,096,002 50,652,690,000 119,776,351,728 100,563,380,782 30,270,063,437 353,043,581,949
Net liquidity gap (A - B) 2,076,909,800 (3,887,606,144) (17,906,220,188) (11,153,672,892) 58,921,928,502 28,051,339,079
Annual Report 2018
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a bank with vision
420
Annexure-C
Balance with other banks-Outside Bangladesh (Nostro Account)
2018 2017
Name of the Bank Currency FC Exchange Equivalent FC Exchange Equivalent
type amount rate Taka amount rate Taka
Interest bearing:
Standard Chartered Bank, New York, USA USD 4,101,814.91 83.90 344,142,270.95 1,046,310 82.70 86,529,828
AB Bank Ltd., Mumbai, India ACUD 540,043.52 83.90 45,309,651.33 124,267 82.70 10,276,911
Citibank AG, Frankfurt, Germany EUR 708,978.25 95.52 67,721,708.99 551,022 99.24 54,683,457
Citibank, N.A., New York, USA USD 1,642,071.01 83.90 137,769,757.74 703,612 82.70 58,188,713
Habib American Bank, New York, USA USD 6,383,537.39 83.90 535,578,787.02 1,372,658 82.70 113,518,856
ICICI Bank Ltd., Mumbai, India ACUD 595,859.40 83.90 49,992,603.66 463,432 82.70 38,325,827
JP Morgan Chase Bank N.A., New York, USA USD 1,518,336.35 83.90 127,388,419.77 383,731 82.70 31,734,569
Sonali Bank (UK) Ltd. USD 3,111 82.70 257,277
Sonali Bank (UK) Ltd. GBP 31,246 111.79 3,492,835
Standard Chartered Bank, Kolkata, India ACUD 304,328.48 83.90 25,533,159.47 7,488 82.70 619,283
Standard Chartered Bank, London, UK GBP 54,542.63 106.23 5,793,833.64 217,695 111.79 24,335,170
Standard Chartered Bank, New York OBU USD 962,295.41 83.90 80,736,584.90 67,351 82.70 5,569,926
Wells Fargo Bank, N.A., New York, USA USD 54,690.33 83.90 4,588,518.69 1,057,151 82.70 87,426,417
Mashreq Bank PSC, New York, USA USD 3,678,510.44 83.90 308,627,025.92 1,594,980 82.70 131,904,873
Mashreq Bank, Mumbai, India ACUD 358,655.24 83.90 30,091,174.64 404,037 82.70 33,413,883
Mashreq Bank, Mumbai, India ACUEUR 15,550.78 95.52 1,485,412.58 15,551 99.24 1,543,260
20,919,214 1,764,758,909 8,043,642 681,821,085
Non-interest bearing:
Bank of Bhutan, Pheuntsholing, Bhutan ACUD 199,182.66 83.90 16,711,425.17 248,963 82.70 20,589,244
Bank of Sydney Ltd., Sydney AUD 84,828.00 59.24 5,025,362.50 63,478 64.53 4,096,286
Banque Saudi Fransi, Riyadh SAR 185,336.06 22.36 4,144,044.17 995,605 22.05 21,954,062
Commerz Bank AG, Frankfurt, Germany EUR 6,316.31 95.52 603,334.97 407,904 99.24 40,480,379
Commerz Bank AG, Frankfurt, Germany USD 2,094,142.08 83.90 175,698,520.51 485,914 82.70 40,185,050
Habib Bank AG Zurich, Zurich, Switzerland CHF 3,870 84.87 328,475
Habib Metropoliton Bank Ltd., Karachi, Pakistan ACUD 170,403.43 83.90 14,296,847.78 571,135 82.70 47,232,891
HDFC Bank, Mumbai, India ACUD 923,868.82 83.90 77,512,594.00 87,179 82.70 7,209,740
Mashreq Bank PSC, Dubai, UAE AED 3,028,212.89 83.90 69,162,123.48 126,298 22.52 2,843,673
Nepal Bangladesh Bank Ltd., Kathmandu, Nepal ACUD 332,539.70 83.90 27,900,080.83 269,865 82.70 22,317,811
Standard Chartered Bank, Colombo, Srilanka ACUD 355,904.22 83.90 29,860,364.06 240,361 82.70 19,877,855
Standard Chartered Bank, Mumbai (AEB), India ACUD 25,255.00 83.90 2,118,894.50 25,255 82.70 2,088,589
Bank of Tokyo-Mitsubishi, JPY YEN 105,221,057.57 0.76 79,567,794.14 44,466,787 0.73 32,630,020
United Bank Limited, Karachi, Pakistan ACUD 44,033.18 83.90 3,694,383.80 43,142 82.70 3,567,858
Zuercher Kantonal Bank, Zurich, Switzerland CHF 21,920.54 84.53 1,852,844.24 212,127 84.87 18,003,835
112,693,000 508,148,614 48,247,883 283,405,768
133,612,215 2,272,907,523 56,291,525 965,226,853
a bank with vision
Southeast Bank Limited Annexure-D
Details of Large Loan

2018 2017
Number of clients 34 29
Amount of outstanding advances (Amount in million Taka) 139,088.20 115,640.90
Amount of classified advances (Amount in million Taka) Nil Nil
Measures taken for recovery (Taka) Nil Nil
Client-wise break up is as follows:
(Amount in million Taka)
Outstanding as at Outstanding as at
Sl. 31 December 2018 31 December 2017
Name of clients
no. Non Non
Funded Total Funded Total
funded funded
1 Abul Khair Group 563.10 5,432.10 5,995.20 824.40 3,947.40 4,771.80
ACS Textiles (Bangladesh) Limited and its
2 2,088.90 1,998.50 4,087.40 2,088.50 1,950.90 4,039.40
related concern
3 Bashundhara Group 4,976.00 4,693.30 9,669.30 3,119.70 8,009.60 11,129.30
4 Bengal Group 2,315.00 1,201.90 3,516.90 965.90 615.10 1,581.00
5 Capital Banani One Ltd. and its related concern 4,222.90 1.40 4,224.30 4,082.30 - 4,082.30
Cassiopea Fashion Ltd. and its related
6 997.00 2,979.70 3,976.70 556.80 3,291.50 3,848.30
concerns
7 Sparrow Apparels Ltd. and its related concerns 1,521.30 6,572.50 8,093.80 1,226.70 3,909.00 5,135.70
8 Deshbandhu Group 6,156.60 1,272.70 7,429.30 5,343.00 2,004.80 7,347.80
9 Grameen Phone Limited - 1,956.40 1,956.40 - 1,711.10 1,711.10
10 Irish Fabrics Limited and its related concerns 526.20 2,188.30 2,714.50 623.60 1,708.10 2,331.70
11 KDS Group 672.70 1,373.50 2,046.20 803.50 1,374.20 2,177.70
12 Keya Group 5,077.20 4,634.40 9,711.60 4,459.80 5,177.10 9,636.90
13 Aaron Denim Limited and its related concerns 2,719.00 851.70 3,570.70 2,289.80 1,088.60 3,378.40
14 Maksons Spinning Mills Ltd. 1,389.10 3,118.30 4,507.40 2,165.20 2,370.60 4,535.80
15 Meghna Group 0.90 7,215.50 7,216.40 - 9,929.60 9,929.60
16 Mother Steel Ltd. and its related concerns 339.70 20.20 359.90 577.00 330.30 907.30
17 N. R. Group 1,009.70 3,091.40 4,101.10 660.60 2,171.20 2,831.80
18 Partex Group 2,181.40 2,424.90 4,606.30 1,303.50 1,902.40 3,205.90
19 S. Alam Group 4,108.70 - 4,108.70 516.00 980.90 1,496.90
20 Yunusco (BD) Limited and its related concerns 1,015.80 1,444.50 2,460.30 560.30 1,753.80 2,314.10
21 T. K. Group 0.20 4,767.90 4,768.10 299.80 3,645.00 3,944.80
Rupayan Housing Estate Limited and its related
22 5,082.90 - 5,082.90 4,814.70 1.70 4,816.40
concerns
Chittagong Asian Apparels Ltd. and its related
23 1,275.60 1,496.40 2,772.00 1,712.50 1,924.00 3,636.50
concerns
Snowtex Outerwear Limited and its related
24 2,754.70 2,422.60 5,177.30 2,080.30 2,410.50 4,490.80
concerns
25 Generation Next Fashions Limited 1,756.60 1,683.20 3,439.80 - - -
Designtex Fashions Limited and its related
26 2,059.50 1,486.40 3,545.90 1,966.60 558.20 2,524.80
concerns
27 Navana Group 4,187.40 44.80 4,232.20 3,732.30 25.20 3,757.50
28 City Group - 1,716.00 1,716.00 - 3,409.00 3,409.00
29 Bashundhara Oil and Gas Company Limited - 915.90 915.90 - 12.50 12.50
30 KSRM Steel Plant Ltd. and its related concerns 1,536.40 1,088.50 2,624.90 2,112.50 543.30 2,655.80
31 Vertex Group 304.10 335.30 639.40
32 Shanin Group 1,437.70 2,363.60 3,801.30
33 Masuma Khatun Textile Industries Ltd. 2,576.50 769.90 3,346.40
Bashundhara Trading Company Ltd. and its
34 1,431.80 1,241.90 2,673.70
related concerns
Total 66,284.60 72,803.60 139,088.20 48,885.30 66,755.60 115,640.90
421
422
Annexure-E
Schedule of fixed assets including premises, furniture and fixtures
Cost/Revaluation Depreciation
Written
Rate Adjustment
Balance Additions Disposal Balance Balance Charged Balancedown value
Revalued of for disposal
Particulars as at during during as at as at during as at as at
during during the

1 Jan 2018 the Period the period 31 Dec 2018 dep. 1 Jan 2018 the period 31 Dec 2018 31 Dec 2018
the year period Taka
Taka Taka Taka Taka % Taka Taka Taka
Taka
A. Own assets
Office:
Land 5,770,913,319 26,337,374 - - 5,797,250,693 - - - - - 5,797,250,693
Building 1,897,220,492 92,041,785 - - 1,989,262,277 4% 469,770,862 57,106,336 - 526,877,198 1,462,385,079
Furniture and fixtures 1,094,444,595 131,764,299 - (5,528,110) 1,220,680,784 10% 463,787,263 71,716,819 (2,583,482) 532,920,600 687,760,184
Office Appliances 14,620,108 1,307,131 - (644,369) 15,282,870 20% 9,087,575 1,189,866 (92,206) 10,185,235 5,097,635
Computer 23,702,837 9,941,996 - - 33,644,833 20% 10,641,672 3,657,608 230,529 14,529,809 19,115,024
Electrical Appliances 1,288,715,737 90,571,373 - (12,503,501) 1,366,783,609 20% 731,441,546 121,788,304 (7,518,747) 845,711,103 521,072,506
ATM Booth 207,974,413 48,098,082 - (3,190,231) 252,882,264 20% 105,072,020 25,195,613 (193,490) 130,074,144 122,808,120
Professional and - - - - - 30% - - - - -
Reference Books
Software 231,318,236 7,053,253 - - 238,371,489 20% 83,066,567 30,885,847 - 113,952,414 124,419,075
Motor vehicles 71,754,000 12,337,917 - (6,497,000) 77,594,917 20% 35,843,673 13,758,785 (739,016) 48,863,442 28,731,475
TOTAL 10,600,663,737 419,453,211 - (28,363,211) 10,991,753,737 1,908,711,179 325,299,179 (10,896,412) 2,223,113,946 8,768,639,790
Residence of executives:
Furniture and fixtures 4,679,290 3,650,000 - (3,125,000) 5,204,290 10% 1,635,675 395,486 (319,349) 1,711,812 3,492,478
Electrical Appliances 22,013,830 8,675,051 - (10,302,201) 20,386,680 20% 11,631,788 2,162,850 (2,451,776) 11,342,863 9,043,817
26,693,120 12,325,051 - (13,427,201) 25,590,970 13,267,462 2,558,337 (2,771,125) 13,054,674 12,536,296
10,627,356,857 431,778,262 - (41,790,412) 11,017,344,707 1,921,978,642 327,857,516 (13,667,537 ) 2,236,168,621 8,781,176,086
B. Leased assets
Furniture and fixtures 106,026,227 - - - 106,026,227 10% 106,026,227 - - 106,026,227 -
Motor vehicles 68,600,615 - - (15,188,000) 53,412,615 20% 65,409,563 2,003,392 (15,188,000) 52,224,955 1,187,660
174,626,842 - - (15,188,000) 159,438,842 171,435,790 2,003,392 (15,188,000) 158,251,182 1,187,660
Balance as at 31
10,801,983,699 431,778,262 - (56,978,412) 11,176,783,549 2,093,414,432 329,860,908 (28,855,537) 2,394,419,803 8,782,363,746
December 2018
Balance as at 31
10,406,610,372 433,413,328 - (38,040,002) 10,801,983,699 1,792,923,672 317,580,081 (17,089,322) 2,093,414,431 8,708,569,268
December 2017
a bank with vision
Southeast Bank Limited Annexure-F
Names of Directors and their interest in

different entities
Names of firms/companies
in which interested as % of
Sl. Status with Position with
Name of the Directors proprietor/ director/ Share
no. the Bank Different entities
managing agent/ guarantor/ holdings
employee/ partner, etc.
Asia Insurance Limited Director 2.97%
1 Mr. Alamgir Kabir, FCA Chairman
National Life Insurance Co. Ltd. Independent Director Nil
Mutual Food Products Limited Chairman 31.78%
Vice
2 Mrs. Duluma Ahmed Mutual Milk Products Limited Chairman 16.00%
Chairperson
Mutual Trading Co. Limited Director 12.96%
3 Mr. M. A. Kashem Director Rose Corner (Pvt.) Limited Chairman 50.00%
Mutual Food Products Limited Managing Director 44.78%
Mutual Milk Products Limited Managing Director 52.00%
4 Mr. Azim Uddin Ahmed Director
Mutual Trading Co. Limited Chairman & MD 71.30%
AD Holdings Limited Chairman 0.50%
5 Mrs. Jusna Ara Kashem Director Rose Corner (Pvt) Limited Director 20.00%
6 Mr. Md. Akikur Rahman Director - - Nil
Bengal Tradeways Limited Managing Director 74.61%
7 Mrs. Rehana Rahman Director CHB Building Technologies
Director 25.00%
Limited
8 Mrs. Sirat Monira Director - - Nil
Independent
9 Mr. Syed Sajedul Kairm - - Nil
Director
Dr. Quazi Mesbahuddin Independent
10 - - Nil
Ahmed Director
Managing
11 Mr. M. Kamal Hossain - - Nil
Director
423
Southeast Bank Limited Annexure-G
Islamic Banking Branches

Balance Sheet
2018 2017
Note
Taka Taka
PROPERTY AND ASSETS
Cash 1
In hand (including foreign currencies) 150,219,956 166,396,106
(including foreign currencies) 1,063,945,753 886,571,821
1,214,165,709 1,052,967,927
In Bangladesh 1,005,380,998 3,512,215
1,005,380,998 3,512,215
Money at call and on short notice - -
Investments in shares and securities 3
Government 970,000,000 650,000,000
Others 3,244,853,863 2,790,589,811
4,214,853,863 3,440,589,811
Investments 4
General Investments etc. 15,327,613,616 13,963,868,517
Bills purchased and discounted 357,093,888 273,282,476
15,684,707,504 14,237,150,993
Fixed assets including premises, furniture and fixtures 5 25,338,771 24,870,249
Other assets 6 33,958,174 2,414,475,850
Non - banking assets - -
Total assets 22,178,405,018 21,173,567,045
Liabilities
Borrowings from other banks, financial institutions and agents 7 - 2,000,000,000
Bills payable 82,297,718 131,716,580
20,001,881,588 16,699,764,297
Bills for collection 10.4 1,267,760,650 955,896,017
Other contingent liabilities - -
7,106,252,233 5,403,268,052
424
a bank with vision
Southeast Bank Limited Annexure-G.1

2018 2017
Note
Taka Taka
Profit on investments 11 1,998,658,866 1,634,871,176
Profit shared on deposits and borrowings etc. 12 (1,289,447,769) (938,503,557)
Net profit on investments 709,211,098 696,367,619
Commission, exchange and brokerage 13 143,377,657 93,525,532
175,922,976 123,776,980
Total operating income (A) 885,134,073 820,144,599
Salaries and allowances 15 75,385,417 76,640,857
Rent, taxes, insurance, electricity etc. 16 45,010,784 41,212,498
Legal expenses - 228,324
Postage, stamp, telecommunication etc. 17 8,186,790 9,150,825
Stationery, printing, advertisements etc. 18 4,555,279 3,454,726
Depreciation and repair of bank's assets 19 7,413,100 7,535,412
Other expenses 20 30,769,313 29,042,378
Total operating expenses (B) 171,320,683 167,265,018
Profit before provision (C=A-B) 713,813,390 652,879,581
Provision for investments 9.1
General provision 3,444,675 40,847,968
Specific provision (948,089,521) 206,808,920
(944,644,846) 247,656,888
Provision for off-balance sheet items 9.2 4,352,235 19,042,419
Provision for diminution in value of investments 9.3 54,619,407 (155,573,513)
Total provision (D) (885,673,204) 111,125,794
Total profit before tax (C-D) 1,599,486,594 541,753,787
425
Southeast Bank Limited Annexure-G.2

2018 2017
Note
Taka Taka
1 Cash
In hand:
Local currency 148,326,584 165,908,176
Foreign currencies 1,893,371 487,930
150,219,956 166,396,106
Balance with Bangladesh Bank:
Local currency 1,058,360,221 885,851,119
Foreign currencies - -
1,058,360,221 885,851,119
Balance with Sonali Bank Limited (as agent of Bangladesh Bank):
Local currency 5,585,532 720,702
1,063,945,753 886,571,821
1,214,165,709 1,052,967,927
1.1 Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in accordance
with section 33 of the Bank Companies Act 1991, MPD Circular nos. 4 and 5 dated 1 December 2010 and MPD
Circular no. 1 and 2 dated 23 June 2014 and 10 December 2013 and DOS Circular No. 1 dated 19 January 2014
and MPD Circulars No. 1 dated 03 April 2018.
The statutory Cash Reserve Ratio on the Shariah-based Islamic Bank’s demand and time liabilities at the rate of
minimum 5.0% on daily basis and 5.50% on bi-weekly basis been calculated and maintained with Bangladesh
Bank in current account and 5.50% Statutory Liquidity Ratio on the same liabilities has also been maintained in
the form of treasury bills, bonds and debentures including excess cash reserve balance with Bangladesh Bank.
Both the reserves maintained by the Bank are in excess of the statutory requirements, as shown below:
1.1.1 a) Cash Reserve Ratio (CRR) for Islamic Banking

Required reserve (5.50% of average Demand and Time Liabilities) 1,007,891,950 819,034,223
Actual reserve held (Average daily on bi-weekly basis): 1,058,360,221 885,851,119
Surplus 50,468,271 66,816,896
b) Statutory Liquidity Ratio (SLR) for Islamic Banking
Required reserve (5.50 % of average Demand and Time Liabilities) 1,007,891,950 693,028,958
Surplus 168,368,321 190,891,938
Held for Statutory Liquidity Ratio of Islamic Banking:
Cash in hand 150,220,000 166,396,000

Balance with agent bank (Sonali Bank Ltd.) as per statement 5,572,000 708,000
Government Securities (HTM) 970,000,000 650,000,000
1,176,260,271 883,920,896

In Bangladesh 2.1 1,005,380,998 3,512,215
Outside Bangladesh
1,005,380,998 3,512,215
426
a bank with vision
2018 2017
Note
Taka Taka
2.1 In Bangladesh
Current account with:
Sonali Bank Limited 740 740
740 740
Short term deposits account with:
Sonali Bank Limited 1,134 1,134
505,380,258 3,511,475
Fixed deposits with other banks:
Social Islami Bank Limited 500,000,000
500,000,000 -
1,005,380,998 3,512,215
3 Investments in shares and securities
Bangladesh Government Islamic Bond 970,000,000 650,000,000
Others 3.1 3,244,853,863 2,790,589,811
4,214,853,863 3,440,589,811
3.1 Others
Shares in un-listed companies - -
3,244,853,863 2,790,589,811
Provision for diminution in the market value of shares (621,210,215) (566,590,808)
2,623,643,648 2,223,999,003
3.2 Investments classified as per Bangladesh Bank Circular
Held to maturity (HTM) 970,000,000 650,000,000
Other securities 3,244,853,863 2,790,589,811
4,214,853,863 3,440,589,811
3.3 Cost and market value of investments
2018 2017
Cost price Market price Market price
Taka Taka Taka
Bangladesh Government Islamic Bond 970,000,000 970,000,000 650,000,000
970,000,000 970,000,000 650,000,000
3.3.2 Others (Investment in shares)
2018 2017
Taka Taka Taka
Shares in un-listed companies - - -
2,623,643,648 3,244,853,863 2,790,589,811
427
3.4 Market price, cost price and related provision of investments as on 31 December 2018
2018 Differences
Name of the Company Market price Cost price (Provision to be
Taka Taka Required)
1 BAY Leasing and Investment Limited 280,453,126 653,782,763 (373,329,637)
2 EXIM Bank Ltd. 192,288,092 370,656,956 (178,368,864)
3 Lafarge Holcim Bangladesh Limited 43,500,000 89,321,368 (45,821,368)
4 Delta Life 7,502,195 12,382,964 (4,880,769)
5 National Life Insurance Company Limited 1,165,175,567 772,488,040 392,687,527
6 Prime Bank Limited 315,083,937 460,263,791 (145,179,854)
7 AFC Agro Biotech Limited 26,514,653 36,946,327 (10,431,674)
8 Active Fine Chemicals 18,053,155 21,204,434 (3,151,279)
9 Aftab Automobiles Limited 85,682,310 145,359,192 (59,676,882)
10 Argon Denim 17,316,130 22,675,929 (5,359,799)
11 Barka Power 65,743,532 80,616,388 (14,872,856)
12 Bangladesh Shipping Corporation Limited 38,341,485 49,874,160 (11,532,675)
13 BSRM Limited 36,959,783 56,679,577 (19,719,794)
14 BSRM Steel Mills Limited 4,585,944 7,019,678 (2,433,734)
15 Doreen Power 17,753,780 23,687,937 (5,934,157)
16 Eastern Housing Limited 15,800,848 18,217,288 (2,416,440)
17 Golden Harvest Limited 14,865,833 18,665,067 (3,799,234)
18 Global Heavy Chemical Limited 23,807,785 34,247,190 (10,439,405)
19 ICB 19,799,899 27,605,297 (7,805,398)
20 INTRACO Refuling Station Limited 3,114,141 4,977,033 (1,862,892)
21 Matin Spinning Limited 11,315,640 14,044,434 (2,728,794)
22 METROSPIN 816,000 1,184,469 (368,469)
23 National Polymar 5,446,666 6,271,005 (824,339)
24 OLYMPIC Limited 10,810,000 12,280,119 (1,470,119)
25 Orion Pharma 44,302,821 61,952,895 (17,650,074)
26 Premier Leasing 7,178,100 15,325,745 (8,147,645)
27 Prime Finance Limited 7,643,035 26,958,933 (19,315,898)
28 Paramount Textile Limited 1,153,250 1,085,254 67,996
29 RSRM STEEL Limited 53,140,758 77,550,224 (24,409,466)
30 Saif Power Tec Limited 9,821,370 13,859,527 (4,038,157)
31 Shahjibazar Power Company Limited 58,586,400 79,199,118 (20,612,718)
32 Titas Gas 5,460,000 7,670,726 (2,210,726)
33 United Finance 10,612,613 14,197,006 (3,584,393)
34 WMSHIPYARD Sheppeard Limited 5,014,800 6,603,030 (1,588,230)
2,623,643,648 3,244,853,863 (621,210,215)
Actual provision 621,210,215
Surplus/(deficit) -
428
a bank with vision
2017 2016
Note
Taka Taka
4 Investments
Investments 4.1 15,327,613,616 13,963,868,517
Bills purchased and discounted 4.2 357,093,888 273,282,476
15,684,707,504 14,237,150,993
4.1 Investments
In Bangladesh
Demand Investment 528,987,815 414,036,921
Bai-Muajjal (Time) Investment 195,402,971 399,099,215
Bai-Muajjal Time under CCS 79,622,265 74,507,241
Bai-Murabaha-BLC - 28,009,964
Bai-Murabaha-LTR 1,193,826,782 800,511,034
Bai-Salam (PACKING CREDIT) 149,133,314 64,089,258
Staff House Building Investment 16,635,522 12,806,256
Export Development Fund (EDF) against LC 773,063,701 712,130,203
Investment against Cash Incentive 17,131,016 19,626,562
Bai-Muajjal - Investment 3,833,616,144 3,668,800,807
Murabaha - Investment 617,028,554 639,319,763
Hire purchase - Investment 7,923,165,532 7,130,931,292
15,327,613,616 13,963,868,517
15,327,613,616 13,963,868,517
In Bangladesh 357,093,888 255,665,585
Outside Bangladesh - 17,616,891
357,093,888 273,282,476
Cost:
Furniture and fixture 25,664,381 24,815,083
Office Appliances 81,620 81,620
Electrical Appliances 29,402,923 27,106,877
Motor Vehicles 2,620,000 2,620,000
ATM Booth 6,925,030 5,524,957
64,693,954 60,148,537
Furniture and fixture 13,662,545 12,547,153
Office Appliances 81,618 81,618
Electrical Appliances 21,886,863 19,896,210
Motor Vehicles 1,659,346 1,135,342
ATM Booth 2,064,811 1,617,965
39,355,183 35,278,288
Written down value as at 31 December 25,338,771 24,870,249
6 Classification of other assets
i) Stationery, stamps, printing materials, etc. 496,036 561,840
ii) Advance rent and advertisement 15,535,825 23,780,432
iii) Interest accrued on investment but not collected,
commission and brokerage receivable on shares
and debentures, and other income receivables 631,241 2,431,241
iv) Security deposits 69,460 69,460
v) Preliminary, formation and organisational expenses,
renovation, development and prepaid expenses 12,859,073 32,154,174
vi) Suspense account 1,676,660 2,205,290
vii) Silver - -
viii) Head office general account - 2,351,077,534
iX) Others 2,689,880 2,195,880
33,958,174 2,414,475,850
429
2018 2017
Note
Taka Taka
7 Borrowing from other banks, financial institutions and agents
In Bangladesh 7.1 - 2,000,000,000
- 2,000,000,000
7.1 In Bangladesh
Secured
Borrowing against securities from Bangladesh Bank 2,000,000,000
- 2,000,000,000
Unsecured - -
- 2,000,000,000
8 Deposits and other accounts
Al-wadeeah current accounts and other accounts
Al-wadeeah current deposits 480,070,113 512,649,667
Foreign currency deposits 168,005,202 52,702,535
Sundry deposits 1,402,171,221 1,077,794,441
2,050,246,536 1,643,146,644
Bills payable
Payment order issued 82,164,252 131,632,916
T.T. payable 80,630 30,628
Demand draft 52,836 53,036
82,297,718 131,716,580
Mudaraba savings bank deposits 2,007,450,494 1,919,612,283
Mudaraba fixed deposits

Mudaraba fixed deposits 14,112,403,140 10,921,320,630
Mudaraba Special notice deposits 519,691,322 758,955,126
Scheme deposits 1,005,212,686 1,324,085,318
Interest Payable on FDR/Scheme 224,579,694 927,717
15,861,886,841 13,005,288,790
20,001,881,588 16,699,764,297
9 Other liabilities
Provision for investments 9.1 367,401,062 1,272,781,335
Provision for off-balance sheet exposures 9.2 58,384,916 54,032,681
Profit suspense account 120,629,304 147,180,025
Accrued expenses 70,443 1,167,700
Profit payable on borrowings - 7,390,820
Accounts payable - Bangladesh Bank 5,955 -
Accounts payable - others 9.2 1,774,777 2,343,610
Provision for diminution in the market value of share 621,210,215 566,590,808
Unearned income 380,676,896 360,014,159
Head office general account 561,325,472 -
Withholding tax 65,044,390 62,301,610
2,176,523,430 2,473,802,748
430
a bank with vision
2018 2017
Note
Taka Taka
9.1 A. General provision for investments
Provision made during the year 3,444,675 40,847,968
112,678,750 109,234,075
Adjustments made during the year -
B. Specific provision for investments
Balance as at 1 January 1,163,547,260 954,803,734
Recoveries of amounts previously written off 39,264,573 1,934,606
Provision made during the year - 206,808,920
1,202,811,833 1,163,547,260
Adjustments made during the year (948,089,521) -
Balance as at 31 December 254,722,312 1,163,547,260
C. Total provision on investments (C=A+B) 367,401,062 1,272,781,335
9.2 Provision for off-balance sheet exposures
Provision made during the year 4,352,235 19,042,419
58,384,916 54,032,681
Adjustments made during the year - -
9.3 Provision for diminution in the market value of share
Provision made during the year 54,619,407 -
621,210,215 722,164,321
Adjustments made during the year - (155,573,513)
10 Contingent liabilities
10.1 Acceptances and endorsements
Acceptance under Letters of credit - Import 626,409,221 653,379,843
Acceptance under Letters of credit - Export 1,079,772,962 501,770,401
1,706,182,184 1,155,150,244
10.2 Letters of guarantee
Local 1,507,850,405 1,462,136,656
Foreign 338,909,000 223,722,000
1,846,759,405 1,685,858,656
10.2.1 Balance for which the Bank is contingently liable in
respect of guarantee issued favouring:
Directors or officers - -
Government - -
Banks and other financial institutions - -
Others 1,846,759,405 1,685,858,656
1,846,759,405 1,685,858,656
10.3 Irrevocable letters of credit (L/C)
Back to back L/C 991,945,659 640,872,199
Others 1,293,604,336 965,490,935
2,285,549,994 1,606,363,135
10.4 Bills for collection
Local 637,248,073 547,674,110
Foreign 630,512,576 408,221,907
1,267,760,650 955,896,017
431
2018 2017
Note
Taka Taka
11. Profit on investment
Demand investment 23,067,695 26,128,573
Bai-Muajjal (Time) investment 36,337,316 36,067,607
Bai-Muajjal time under CCS 8,590,851 6,979,097
Bai-Murabaha-BLC 4,818,214 9,510,323
Bai-Murabaha-LTR 129,255,381 70,059,575
Bai-Salam (PACKING CREDIT) 9,020,244 5,781,431
Staff house building investment - 118
Staff car loan investment - 33,976
Investment against cash incentive 1,948,784 2,189,502
Bai-Muajjal - Investment 339,377,788 307,187,319
Murabaha - Investment 26,208,793 63,984,546
Hire purchase - Investment 857,945,183 491,817,282
Profit on special term deposit STD 68,783 2,267,896
Bills purchased and discounted 44,359,133 29,674,166
Profit on placement with other banks - 13,878,333
Inter branch profit income 517,660,703 569,311,431
1,998,658,866 1,634,871,176
12. Profit shared on deposits and borrowings etc.
Profit shared on deposits (Islamic Banking Branch):
Mudaraba Savings Deposits (MSB) 272,778,245 284,524,614
Mudaraba Short Term Deposits (MSTD) 35,504,446 38,568,104
Mudaraba Fixed Term Deposits (MFDR) 896,801,767 533,095,509
Interest on foreign bank accounts 1,897,963 -
Profit on Re-finance borrowings 82,465,347 82,315,330
1,289,447,769 938,503,557
13 Commission, exchange and brokerage
Commission and brokerage 119,684,128 77,936,579
Exchange gain 23,693,530 15,588,953
143,377,657 93,525,532
14 Other operating income
Other fees-telephone and postage 3,051,706 2,919,908
Income from retail banking 73,000 154,153
Other fees - SWIFT 13,844,029 10,092,965
32,545,319 30,251,448
Basic salary 40,988,179 39,089,305
Allowances 24,305,639 23,573,491
Bonus 6,456,643 10,512,942
Provident fund 3,634,956 3,465,119
75,385,417 76,640,857
Rent, rates and taxes 28,776,589 28,608,351
Insurance 11,837,732 8,612,250
Electricity and lighting 4,396,463 3,991,897
45,010,784 41,212,498
Postage 3,202,018 2,753,978
Telephone /Telex 265,864 318,240
VSAT on-line 1,994,914 2,202,780
SWIFT services 2,723,994 3,875,827
8,186,790 9,150,825
432
a bank with vision
2018 2017
Note
Taka Taka
Office stationery 934,342 979,558
Printing stationery 1,297,330 1,044,226
Security stationery 2,073,296 1,275,161
Computer stationery 244,623 152,662
Publicity and advertisement 5,688 3,118
4,555,279 3,454,726
Depreciation:
Motor vehicles 524,004 524,004
ATM Booth 1,005,873 872,898
4,515,142 4,341,371
Repair:
Furniture and fixtures 497,864 365,246
Office and electrical appliance 1,198,035 1,757,874
Motor vehicles 277,694 151,348
Repair, maintenance and utilities 924,365 919,573
2,897,958 3,194,041
7,413,100 7,535,412
20 Other expenses
Security and cleaning 8,913,162 7,022,353
Entertainment 1,466,620 1,393,014
Car expenses 6,398,613 7,829,324
Books and periodicals 36,820 34,477
Subscription and donation 55,905 -
Travelling expenses 326,568 323,989
Conveyance 347,421 342,006
Fuel 246,328 227,268
Uniforms and apparels 104,398 125,220
Loss on sale of fixed assets 14,551 13,678
Expenses relating ATM services 328,713 -
Expenses for CIB report 5,920 4,920
Expenses regarding retail banking 951,157 1,011,211
Miscellaneous 11,573,137 10,714,917
30,769,313 29,042,378
433
Southeast Bank Limited Annexure-H
Off-Shore Banking Unit, Bangladesh

Balance Sheet
2018 2017
Note
USD Taka Taka
PROPERTY AND ASSETS
Cash
In hand (including foreign currencies) - - -
(including foreign currencies) - - -
- - -
Balances with other banks and financial institutions 3
In Bangladesh 1,311,143 110,004,898 122,490,327
Outside Bangladesh 962,295 80,736,585 5,569,926
2,273,438 190,741,482 128,060,253
Money at Call and on short notice 10,000,000 839,000,000 289,450,000
Investments
Government - - -
Others - - -
- - -
Loans and advances 4
Loans, cash credit & overdrafts etc. 62,281,780 5,225,441,312 3,048,637,990
Bills purchased and discounted 77,697,591 6,518,827,903 5,075,982,118
139,979,371 11,744,269,214 8,124,620,108
Fixed assets including premises, furniture and fixtures 5 15,485 1,299,197 1,531,504
Other assets 6 194,578 16,325,091 20,124,004
Non-banking assets - - -
Total assets 152,462,872 12,791,634,985 8,563,785,868
Liabilities
Borrowings from other banks, financial
institutions and agents 7 142,500,000 11,955,750,000 8,061,596,000
Current accounts and other accounts 77,927 6,538,058 8,063,742
Bills payable - - -
Savings bank deposits - - -
Fixed deposits 406,360 34,093,601 27,215,079
484,287 40,631,659 35,278,821
Other liabilities 9 3,227,309 265,977,326 116,223,341
Total liabilities 146,211,595 12,262,358,985 8,213,098,162
Paid up capital - - -
Statutory reserve - - -
Other reserves - - -
Foreign currency losses - - -
Retained earnings 10 6,251,276 529,276,000 350,687,706
Total shareholders' equity 6,251,276 529,276,000 350,687,706
Total liabilities and shareholders' equity 152,462,872 12,791,634,985 8,563,785,868
434
a bank with vision
Southeast Bank Limited Annexure-H

Balance Sheet
2018 2017
Note
USD Taka Taka
Acceptances and endorsements - - -
Letters of guarantee - - -
Irrevocable letters of credit - - 39,099,223
Bills for collection 2,129,080 176,671,092 161,100,293
Other contingent liabilities - - -
Total contingent liabilities 2,129,080 176,671,092 200,199,516
Other commitments
Documentary credits and short term trade-related - - -
transactions
Forward assets purchased and forward deposits - - -
placed
Undrawn note issuance and revolving underwriting facilities - - -
Undrawn formal standby facilities, credit lines and other - - -
commitments
Total other commitments - - -
Total off-balance sheet items including contingent liabilities 2,129,080 176,671,092 200,199,516
435
Southeast Bank Limited Annexure-H.1

Profit and Loss account
2018 2017
Note
USD Taka Taka
Interest income 11 8,061,335 673,202,880 448,187,159
Interest paid on deposits and borrowings etc. 12 (5,982,051) (499,561,684) (299,456,776)
Net interest income 2,079,284 173,641,196 148,730,383
Commission, exchange & brokerage 13 400,370 33,434,928 28,552,410
Other operating income 13.1 141,700 11,833,382 6,983,250
542,070 45,268,310 35,535,660
Total operating income (A) 2,621,354 218,909,506 184,266,043
Salaries and allowances 14 53,184 4,441,390 4,348,142

Rent, taxes, insurance, electricity etc. 15 12,688 1,059,615 1,015,474
Legal expenses - - -
Postage, stamp, telecommunication 16 13,235 1,105,281 973,283
Stationery, printing, advertisements etc. 17 1,537 128,332 101,586
Depreciation and repair of bank's assets 18 3,160 263,905 332,560
Other expenses 19 55,350 4,622,300 4,255,775
Total operating expenses (B) 139,155 11,620,824 11,026,819
Operating profit (C=A-B) 2,482,199 207,288,683 173,239,224
Provision for loans and advances
General provision 9.1 431,466 36,200,000 17,977,179
Specific provision - - -
431,466 36,200,000 17,977,179
Provision for diminution in value of investments - -
Other provisions 9.2 (2,918) (235,284) (100,652)
Total provision (D) 428,548 35,964,716 17,876,527
Total profit before tax (C-D) 2,053,651 171,323,967 155,362,697
436
a bank with vision
Southeast Bank Limited Annexure-H.2

1 Status of the unit

Off-shore Banking Unit (OBU) is a separate business unit of Southeast Bank Limited, governed under the
Rules and Guidelines of Bangladesh Bank. The Bank obtained permission to operate OBU vide Letter No.
BRPD(P-3)744(98)/2008-2213 dated June 24, 2008. The Bank presently has 2 (two) OBUs – one at Export
Processing Zone, Dhaka and the other at Export Processing Zone, Chittagong.
OBU boosts up foreign trade by extending finance to industrial units inside and outside the Export Processing
Zone (EPZ) area. OBU is free to make loans/advances to persons/institutions not resident in Bangladesh and to
make loans/advances to Type-A (wholly foreign owned) units in the EPZs in Bangladesh. Industrial units outside
the EPZs and Type-B and Type-C industrial units within the EPZs in Bangladesh may avail term loans in foreign
currencies from OBU subject to compliance with the guidelines issued by the Board of Investment for borrowing
abroad by industrial units Bangladesh.
2 Significant accounting policies and basis of preparations
2.1 Basis of preparation
The financial statements are prepared on the basis of a going concern and represent the financial performance
and financial position of the OBU. The financial statements of the OBU are prepared in accordance with the Bank
Companies Act 1991, in particular, Banking Regulation and Policy Department (BRPD) Circular No. 14 dated June
25, 2003, other Bangladesh Bank Circulars and International Financial Reporting Standards (IFRS).
2.2 Foreign currency
Items included in the financial statements are measured using the currency of the primary economic environment
in which the entity operates, i.e., the functional currency. The financial statements are presented in Taka which is
the Bank’s functional and presentation currency. Figures appearing in the financial statements have been rounded
off to the nearest Taka. Assets & liabilities and income & expenses have been converted into Taka currency @
US$1 = Tk. 83.9000 (closing rate as at 31 December 2018) and Tk.83.5101 (average rate which represents the
year end) respectively.
2.3 Basis of Accounting
OBU maintains its accounting records in USD from which accounts are prepared according to the Bank Companies
Act, 1991, Bangladesh Financial Reporting Standards and other applicable directives issues by Bangladesh Bank.
2.4 Functional and presentation currency
The Financial Statements of OBU are presented in both USD and Bangladesh Taka (Taka/Tk.) except as otherwise
indicated. Financial information presented in Taka and USD has been rounded off to the nearest integer. and
financial information presented in USD has been rounded into two decimal points
2018 2017
Note
USD Taka Taka
In Bangladesh 3.1 1,311,143 110,004,898 122,490,327
Outside Bangladesh 3.2 962,295 80,736,585 5,569,926
2,273,438 190,741,483 128,060,253
3.1 In Bangladesh
Southeast Bank Limited 1,311,143 110,004,898 122,490,327
Other commercial bank - - -
1,311,143 110,004,898 122,490,327
3.2 Outside Bangladesh (current account)
Standard Chartered Bank, New York 962,295 80,736,585 5,569,926

Money at call and on short notice
In bank;
Placement SEBL Head Office 10,000,000 839,000,000 289,450,000
10,000,000 839,000,000 289,450,000
437
2018 2017
Note
USD Taka Taka
4 Loans and advances
Loans, cash credit, overdrafts etc. 4.1 62,281,780 5,225,441,312 3,048,637,990
Bills purchased and discounted 4.2 77,697,591 6,518,827,903 5,075,982,118
139,979,371 11,744,269,214 8,124,620,108
4.1 Loans, cash credit, overdrafts etc.
In Bangladesh - - -
Outside Bangladesh 4.1.1 62,281,780 5,225,441,312 3,048,637,990
62,281,780 5,225,441,312 3,048,637,990
4.1.1 Outside Bangladesh
Time loan 29,556,084 2,479,755,489 708,775,158
Term loan 30,352,152 2,546,545,580 2,184,773,489
Advance-LTR 954,839 80,110,992 57,970,184
Loan against foreign bill 1,418,704 119,029,250 97,119,159
62,281,780 5,225,441,312 3,048,637,990
In Bangladesh - - -
Outside Bangladesh 77,697,591 6,518,827,903 5,075,982,118
77,697,591 6,518,827,903 5,075,982,118
Cost:
Furniture and fixtures 40,730 3,417,250 3,368,373
Electrical appliances 22,067 1,851,389 1,824,909
62,797 5,268,639 5,193,283
Furniture and fixtures 27,102 2,273,891 2,027,555
Electrical appliances 20,209 1,695,551 1,634,224
47,312 3,969,442 3,661,779
Written down value as at 31 December 15,485 1,299,197 1,531,504
6 Other assets
Interest on calls and placements(USD) 58,056 4,870,862 920,607
Prepaid management fee GCPF 134,145 11,254,793 13,456,951
Prepaid interest mashreq - - 5,560,583
Insurance 89 7,443 8,171
Advance office rent 2,149 180,270 177,692
Others 140 11,723 -
194,578 16,325,091 20,124,004
7 Borrowing from other banks, financial institutions and agents
Borrowings from IFC - - 1,240,500,000
Borrowings from CBQ 20,000,000 1,678,000,000 661,600,000
Borrowings from Mashreq bank PSC-USD - - 827,000,000
Borrowings from GCPF 20,000,000 1,678,000,000 1,654,000,000
Borrowings from RAK Bank ,UAE 16,500,000 1,384,350,000 1,240,500,000
Borrowings from Bank Muscat, Oman - - 661,600,000
Borrowings from FGB, UAE 15,000,000 1,258,500,000 827,000,000
Borrowings from ADB 10,000,000 839,000,000 289,450,000
Borrowings from NBM Bank, Nepal 5,000,000 419,500,000 -
Borrowings from SCB, Singapore 25,000,000 2,097,500,000 -
Borrowings from EIB, UAE 16,000,000 1,342,400,000 -
Borrowings from FM HDFC Bank,Hong Kong - - 413,500,000
Borrowings from Head Office 15,000,000 1,258,500,000 246,446,000
142,500,000 11,955,750,000 8,061,596,000
8 Deposit accounts
Current accounts 8.1 77,927 6,538,058 8,063,742
Fixed deposits 406,360 34,093,601 27,215,079
484,287 40,631,659 35,278,821
438
a bank with vision
2018 2017
Note
USD Taka Taka
8.1 Current deposits
Current accounts 59,054 4,954,608 4,153,819
Margin against L/C - - 3,909,923
Sundry creditors 18,873 1,583,450 -
77,927 6,538,058 8,063,742
9 Other liabilities
Accrued interest on borrowing .O/Banks (Call) 234,097 19,640,758 207,176
Interest payable-CBQ Loan 149,655 12,556,060 8,014,182
Accrued interest on borrowing from NBM Bank, Nepal 54,250 4,551,575 -
Interest payable on RAK Bank, UAE 105,304 8,834,995 7,688,983
Interest payable on FGB, UAE 178,723 14,994,897 3,818,628
Interest payable on ADB 118,809 9,968,047 1,600,100
Accrued interest on borrowing from EIB, UAE 192,018 16,110,291 -
Accrued interest on borrowing from SCB, Singapore 325,307 27,293,236 -
Accrued interest on borrowing from GCPF - - 769,610
Interest payable on Bank Muscat, Oman - - 2,920,259
Interest payable-IFC loan - - 1,757,375
Accrued interest on borrowing FM-HDFC Bank, Hong Kong - - 6,195,033
Interest Suspense 391,070 32,810,757 -
Provision for unclassified loans and advances 9.1 1,456,785 117,450,000 81,250,000
Provision for off-balance sheet exposures 9.2 21,291 1,766,711 2,001,995
3,227,309 265,977,326 116,223,341
9.1 Provision for unclassified loans and advances
Balance as at 1 January 1,025,319 81,250,000 63,272,821
Provision made during the year 431,466 36,200,000 17,977,179
1,456,785 117,450,000 81,250,000
Adjustments made during the year - - -
Balance as at 31 December 1,456,785 117,450,000 81,250,000
9.2 Other provisions
Provision for off-balance sheet exposures
Balance as at 1 January 24,208 2,001,995 2,102,648
Add: Provision made during the year - - -
24,208 2,001,995 2,102,648
Less: Adjustments made during the year (2,918) (235,284) (100,652)
Balance as at 31 December 21,291 1,766,711 2,001,995
10 Retained earnings
Balance as at 1 January 4,197,625 350,687,705 178,196,055
Add/less: foreign currency translation gain for last year - 7,264,328 17,128,953
4,197,625 357,952,033 195,325,008
Addition during the year 2,053,651 171,323,967 155,362,697
6,251,276 529,276,000 350,687,706
Add/less: foreign exchange gain (loss) - - -
Balance as at 31 December 6,251,276 529,276,000 350,687,706
11 Interest income on investment
Interest income from loans and advances 2,637,614 220,267,367 130,111,780
Interest on overdraft 118 9,829 47,455
Interest income from bill purchased and discounted 5,161,369 431,026,422 317,132,599
Interest income calls & placement (FCY) 262,235 21,899,262 895,326
8,061,335 673,202,880 448,187,159
12 Interest paid on deposits and borrowings etc.
Interest on FDR 35 2,898 2,184
Interest expense on mashreq bank loan 171,099 14,288,517 16,858,486
Interest expenses -GCPE loan 1,187,458 99,164,755 65,135,550
Interest on IFC loan 463,017 38,666,637 54,030,392
439
2018 2017
Note
USD Taka Taka
Interest on CBQ loan 721,498 60,252,403 42,233,009
Interest expenses -ICIC bank 155,123 12,954,324 -
Interest expenses -RAK bank,UAE 919,401 76,779,269 36,260,651
Interest expenses -Bank Muscat, Oman 101,554 8,480,808 22,720,091
Interest expenses FGB, UAE 263,971 22,044,233 29,757,481
Interest expenses ADB 360,398 30,096,860 8,312,692
Interest expense on -HDFC BANK, HONG 8,375 699,421 6,024,906
Interest expense on -SCB, Singapore 651,772 54,429,512 -
Interest expense on -EIB, UAE 340,651 28,447,807 -
Interest expense on -NMB Bank 54,250 4,530,423 -
Interest on calls and placement 583,448 48,723,817 18,121,334
5,982,051 499,561,684 299,456,776
13 Commission, exchange & brokerage
Commission and other charges 400,370 33,434,928 28,552,410
400,370 33,434,928 28,552,410
13.1 Other operating income
Other income- SWIFT 27,820 2,323,251 603,217
Miscellaneous income 26,440 2,208,008 1,371,760
Rebate from trade payments 87,440 7,302,123 5,008,273
141,700 11,833,382 6,983,250
Basic salary 25,173 2,102,214 1,981,007
Allowances 21,518 1,796,939 1,640,245
Provident fund contribution 2,429 202,822 198,522
Bonus 4,064 339,415 528,367
53,184 4,441,390 4,348,142
Rent, rates and taxes 10,735 896,478 853,088
Insurance 222 18,531 19,645
Electricity and lighting 1,732 144,606 142,741
12,688 1,059,615 1,015,474
Postage 200 16,684 13,601
Internet service 3,114 260,078 281,268
SWIFT charges 6,553 547,280 476,149
FC Nostro charges 2,960 247,190 171,072
Telephone 408 34,050 31,193
13,235 1,105,281 973,283
Office and printing stationery 1,537 128,332 101,586
1,537 128,332 101,586
Depreciation on own assets:
Furniture and fixtures 2,585 215,907 218,278
Electrical appliances 575 47,998 114,282
3,160 263,905 332,560
19 Other expenses
Entertainment 672 56,095 28,876
Management fee GCPF 28,575 2,386,283 1,759,214
Pay Protection 193 16,090 -
Expense-IFC portfolio monitoring expense - - 462,467
Travelling expenses and allowance 49 4,111 11,301
House maintenance (Executive ) 2,281 190,472 186,746
Repair, maintenance and utilities 732 61,120 39,094
Books and periodicals 71 5,949 5,271
Conveyance 560 46,805 38,390
Miscellaneous 22,217 1,855,374 1,724,416
55,350 4,622,300 4,255,775
440
Annexure-I
Geographical and Business Segment
I) Geographical Segment
Inside Bangladesh Outside Bangladesh
Southeast
Southeast
Southeast Exchange
SEBL SEBL Capital Financial
Off Shore Financial Company Total
Particulars (Conventional & Services Services
Banking Unit Services (South Taka
Islamic Banking) Limited (Australia)
(UK) Ltd Africa) Pty
Pty Ltd
Ltd
Income 14,504,704,388 218,909,506 113,002,743 23,886,752 - 101,413,142 14,961,916,531
Less: Inter segmental income/expense 4,107,071 (4,107,071) -
Total Income 14,500,597,317 218,909,506 117,109,814 23,886,752 - 101,413,142 14,961,916,531
Operating profit (profit before unallocated expenses
14,500,597,317 218,909,506 117,109,814 23,886,752 - 101,413,142 14,961,916,531
and tax)
Allocated expenses (5,013,888,340) (11,620,824) (88,921,410) (23,520,884) (890,886) (40,079,066) (5,178,921,410)
Provision against loans & advances and others (5,078,372,191) (35,964,716) - (5,114,336,907)
Profit (loss) before tax 4,408,336,786 171,323,967 28,188,404 365,868 (890,886) 61,334,075 4,668,658,214
Provision for tax including deferred tax (2,165,000,000) (13,316,862) (17,132,508) (2,195,449,370)
Net profit 2,243,336,786 171,323,967 14,871,542 365,868 (890,886) 44,201,567 2,473,208,844
Segment assets 362,707,676,157 12,791,634,985 5,876,791,255 26,894,933 1,381,793 171,299,757 381,575,678,880
Segment liabilities 362,707,676,157 12,791,634,985 5,876,791,255 26,894,933 1,381,793 171,299,757 381,575,678,880
Annual Report 2018
441
a bank with vision
442
Annexure-I
Geographical and Business Segment
II) Business Segment
Inside Bangladesh Outside Bangladesh
Southeast
Southeast
Southeast Exchange
Conventional SEBL Capital Financial
Islamic Financial Company Total
Particulars Banking including Services Services

Banking Services (South Taka
OBU Limited (Australia)
(UK) Ltd Africa) Pty
Pty Ltd
Ltd
Income 13,838,479,821 885,134,073 113,002,743 23,886,752 - 101,413,142 14,961,916,531
Less: Inter segmental income 4,107,071 - (4,107,071) - - - -
Total income 13,834,372,750 885,134,073 117,109,814 23,886,752 - 101,413,142 14,961,916,531

Operating profit (profit before unallocated expenses
13,834,372,750 885,134,073 117,109,814 23,886,752 - 101,413,142 14,961,916,531
and tax)
Allocated expenses (4,854,188,480) (171,320,683) (88,921,410) (23,520,884) (890,886) (40,079,066) (5,178,921,410)
Provision against loans & advances and others (6,000,010,111) 885,673,204 - - - - (5,114,336,907)
Profit (loss) before tax 2,980,174,159 1,599,486,594 28,188,404 365,868 (890,886) 61,334,075 4,668,658,214
Provision for tax including deferred tax (2,165,000,000) - (13,316,862) - - (17,132,508) (2,195,449,370)
Net profit 815,174,159 1,599,486,594 14,871,542 365,868 (890,886) 44,201,567 2,473,208,844
Segment assets 353,882,231,595 21,617,079,547 5,876,791,255 26,894,933 1,381,793 171,299,757 381,575,678,880
Segment liabilities 353,882,231,595 21,617,079,547 5,876,791,255 26,894,933 1,381,793 171,299,757 381,575,678,880

a bank with vision
Southeast Bank Capital Services Ltd.
443
Independent Auditor’s Report

To The Shareholders of Southeast Bank Capital Services Limited
Report on The Audit of The Financial Statements

Opinion
We have audited the financial statements of Southeast Bank Capital Services Ltd. which comprise the statement of
financial position as at 31 December 2018 and the statement of comprehensive income, statement of changes in equity
and statement of cash flows for the year ended and notes to the financial statements including a summary of significant
accounting policies and other explanatory notes.
In our opinion, the accompanying give true and fair view, in all material respects, of the financial position of the company
as at 31 December 2018 and of its financial performance and cash flows for the year then ended and in accordance with
International Financial Reporting Standards (IFRSs).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs).Our responsibilities under those
standards are further described in the Auditors Responsibilities for the audit of the financial statements section of our
report. We remained independent of the company in accordance with the International Ethics Standards Board for
Accountants’ Code of Ethics for professional Accountants (IESBA Code) together with the ethical requirements that are
relevant to our audit of the financial statements and we have fulfilled our other ethical responsibilities in accordance
with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
International Financial Reporting standards (IFRS), the companies Act 1994, and other applicable laws and regulations
and for such internal control as management determines is necessary to enable the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying
appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. 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.
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 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 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 consolidated and separate financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism
throughout the audit.
We also:
 Identify and assess the risks of material misstatement of the consolidated and separate 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. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, intentional omissions, misrepresentations, or the override of internal control.
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a bank with vision
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
 Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report.
 Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial 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 to express an opinion on the financial statements. We are responsible for the direction, supervision
and performance of the audit. We remain solely responsible for our audit 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. We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
Report on other Legal and Regulatory Requirements

We also report that:
i. We have obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purpose of our audit and made due verification thereof;
ii. in our opinion, proper books of accounts as required by law have been kept by the company and so far as
it appeared from our examination of those books;
iii. The Company’s Financial Position as at 31 December 2018 and Statement of Profit or Loss and Other
Comprehensive Income and its Cash Flows dealt with by the report are in agreement with the books of
account and returns;
Pinaki Das, FCA

Pinaki & Company
Dhaka.
Dated: 6th March, 2019
445

Statement of Financial Position
TAKA
PARTICULARS
31-12-2018 31-12-2017
ASSETS
A. NON-CURRENT ASSETS 549,252,300 608,167,963
Property, Plant and Equipment Note- 04 549,252,300 608,167,963
B. CURRENT ASSETS 5,327,538,955 5,184,493,803

Margin Loan Note- 05 2,467,417,247 2,465,716,400
Accounts Receivable Note- 06 20,494,316 21,241,611
Advances, Deposits and Prepayments Note- 07 90,507,003 77,121,808
Investment in Quoted Shares Note- 08 2,553,196,239 2,456,875,942
Investment in Un Quoted Shares Note- 09 172,600,000 131,000,000
Cash and Cash Equivalents Note- 10 23,324,151 32,538,042
C. TOTAL ASSETS [A + B] 5,876,791,255 5,792,661,766
EQUITY AND LIABILITIES
D. CAPITAL AND RESERVE 5,500,276,834 5,489,512,364
Share Capital Note- 11 5,500,000,000 5,500,000,000
Retained Earnings Note- 12 276,834 (10,487,636)
E. NON-CURRENT LIABILITIES - -
- -
F. CURRENT LIABILITIES 376,514,421 303,149,402
Margin Deposit Note- 13 37,532,362 27,524,421
Advance Received for Rent Note- 14 1,125,860 7,110,500
Collection in Transit Note- 15 23,512,365 23,908,591
Loan From ICB Note- 16 54,208,826 -
Provision for Corporate Income Tax Note- 17 94,132,785 80,815,923
Provision for Diminution in Value of Investments Note- 18 153,692,107 153,692,107
Accrued Expenses Note- 19 637,740 155,483
Other Liabilities Note- 20 11,672,375 9,942,376
G. TOTAL EQUITY AND LIABILITIES [D + E + F] 5,876,791,255 5,792,661,766
Chairman Director Managing Director PINAKI & COMPANY

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Statement of Profit or Loss and Other Comprehensive Income
TAKA
PARTICULARS 01.01. 2018 to 01.01. 2017 to
31.12.2018 31.12.2017
Income:
Interest on Portfolio Loan 17,080,020 16,899,513
Portfolio Management Fee 14,942,265 14,611,790
Documentation Charge 146,450 147,558
Settlement Fees 14,773,595 34,908,758
Commission on Underwriting 325,000 495,000
Commission on Issue Management - 40,000
Income on Investment in Shares 19,076,085 48,532,594
Dividend Income 48,654,756 52,538,334
Other Income Note- 21 4,308,624 4,273,920
Interest on SND Acc. 166,849 5,387,568
Total Income 119,473,644 177,835,035
Expenses:
Salary & Allowances Note- 22 12,546,929 10,295,856
Financial Expenses Note- 23 2,196,982 5,791,226
Printing & Stationery 304,136 256,808
Local Conveyances 34,286 20,250
Entertainment 304,784 215,400
Car Maintenance 647,660 561,492
House Service & Utilities 282,500 191,935
House Maintenance 1,292,680 1,017,902
Telephone & Postage 165,253 144,673
Office Space Rentals 12,074,202 11,441,052
Other Rates & Taxes 100,100 617,550
Miscellaneous Expenses 827,108 250,064
CDBL Expenses 1,293,192 3,445,778
Misc. Contractual Services 827,815 813,854
Bank Charges 50,332 41,764
Seating Fees ( Director Remuneration ) 208,000 210,000
Fuel and Lubricant 320,320 112,048
Donation/Contribution - 50,000
Audit Fees 69,000 69,000
Professional Service Charge 264,500 143,750
Corporate Expenses (Subscription) 150,000 215,000
Utilities Charges (Repair & Main & Utilities) 952,394 226,265
Gratuity Provision 500,000 -
Training & Seminar 2,810 64,300
Electricity & Lighting Expenses 1,000,865 989,688
Depreciation 58,976,463 56,255,905
Total Expenses 95,392,312 93,441,560
Net Profit Before Provision 24,081,333 84,393,476
Add/(Less): Provision for Diminution in Value of Note- 24 - (39,388,168)
Investments
Profit/(Loss) Before Tax 24,081,333 45,005,308
Less: Provision for Corporate Income Tax 13,316,862 18,983,984
Retained Earnings Carried Forward 10,764,471 26,021,323
Chairman Director Managing Director PINAKI & COMPANY

447

Statement of Changes in Shareholders Equity
(Amount in Taka)
Retained
Particulars Share Capital General Reserve Total
Earnings
Balance as on 01.01.2018 5,500,000,000 - (10,487,637) 5,489,512,364
Retained earnings during the year - - 10,764,471 10,764,471
Balance as on 31.12.2018 5,500,000,000 - 276,834 5,500,276,834
Statement of Changes in Shareholders Equity

for the year ended 31 December 2017
(Amount in Taka)
General Retained
Particulars Share Capital Total
Reserve Earnings
Balance as on 01.01.2017 5,500,000,000 - (36,508,960) 5,463,491,040
Add: during the year - - - -
Retained earnings during the year - - 26,021,323 26,021,323
Balance as on 31.12.2017 5,500,000,000 - (10,487,637) 5,489,512,364
Managing Director
Director
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Statement of Cash Flows
TAKA
01.01.2018 to 01.01.2017 to
31.12.2018 31.12.2017
Cash flow from Operating Activities
Cash receipt from Customer 17,827,315 31,548,186
Cash Received from Others 53,572,019 103,009,621
Cash paid to Employee and Suppliers (32,006,610) (74,448,866)
Advances, Deposits and Prepayments 8,515,802 19,386,421
Income Tax Paid (21,900,997) (17,046,603)
Margin Loan (1,700,847) 34,926,043
Margin Deposit 10,007,941 6,520,770
Advance Received for Rent (5,984,640) (5,984,640)
Collection in Transit (396,226) (43,126,435)
Net cash provided by Operating Activities 27,933,757 54,784,497
Cash flow from Investing Activities

Investment in Quoted Shares (137,920,297) (723,928,362)
Disposal of Investment in Quoted Shares - 412,677,374
Acquisition of Fixed Asset (60,800) (336,708,563)
Interest on SND 166,849 5,387,568
Income from Dividend 48,654,756 52,538,334
Net cash used in Investing Activities (89,159,492) (590,033,650)
Cash flow from Financing Activities

Net Increase/(Decrease) in Overdraft - (10,674)
Net Increase/(Decrease) ICB Loan- Pronodona Scheme 54,208,826 (7,687,819)
Interest on ICB Loan - Pronodona Scheme (2,196,982) -
Financial Expense on Loan - (5,791,226)
Net cash used in Financing Activities 52,011,844 (13,489,719)
Increase/(decrease) in cash and cash equivalents (9,213,891) (548,738,872)
Cash and cash equivalents at the opening 32,538,042 581,276,914
Cash and cash equivalents at the closing 23,324,151 32,538,042
Managing Director
Director
449

1.0 Legal Status and Nature of the Company

Southeast Bank Capital Services Limited (hereinafter referred to as “the Company”) was incorporated in
Bangladesh as a public limited company on 23.09.2010 under the Companies Act 1994 and granted registration
number C-87139/10.
1.1 Address of the Registered Office
The company operates its activities from Eunoos Trade Center, 52/53 Dilkusha C/A, Dhaka-1000.
1.2 Nature of Business Activities:
The main object of Southeast Bank Capital Services Limited is to carry on the business of merchant banking under
the Bangladesh Securities and Exchange Commission (Merchant Banking and Portfolio Management) Rules 1996.
2.0 Significant Accounting Policies
2.1 Statement of Compliance
The financial statements of Southeast Bank Capital Services Limited have been prepared in accordance with the
International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS), Companies Act
1994 and other applicable laws and regulations.
2.2 Measurement Bases Used in Preparing the Financial Statements
The elements of financial statements have been measured on “Historical Cost” basis, which is one of the most
commonly adopted base provided in “the framework for the preparation and presentation of financial statements”
issued by the International Accounting Standard Board (IASB).
2.3 Going Concern
Financial Statements have been prepared on going concern basis as there was no significant doubt or uncertainty
to continue the operation of the company in the foreseeable future.
2.4 Components of Financial Statements:
According to International Accounting Standard (IAS) – 1, as adopted by ICAB as IAS – 1 “presentation of financial
statements“ the complete set of financial statements includes the following components:
i) Statement of Financial Position
ii) Statement of Profit or Loss and Other Comprehensive Income
iii) Statement of Changes in Shareholders Equity
iv) Statement of Cash Flows and
v) Notes to the Financial Statements.
3.0 Principal Accounting Policies:
3.1 Cash Flow Statement
Cash Flow Statement is prepared in accordance with IAS 7 “Cash Flow Statement”. The cash flow from the
operating activities have been presented under Direct Method as prescribed by the Securities and Exchange
Rules 1987 and considering the provisions of Paragraph 18(b) of IAS-7 which provides that “Enterprises are
encouraged to report Cash Flow from Operating Activities using the Direct Method”.
3.2 Reporting Currency and Level of Precision:
The figures in the financial statements represent Bangladesh Currency (Taka), which have been rounded-off to
the nearest Taka.
3.3 The board at its meeting dated 17-12-2018 identified certain parties quite unable to accommodate interest on its
portfolio loan which were considered totally unrealizable and as such kept the same out of interest during the year.
3.4 Others:
a) There is no claim against the company, which has not been acknowledged as debt in the Statement of
Financial Position.
b) There was no contingent liability as on 31-12-2018.
c) Figures of the previous year have been rearranged, wherever considered necessary to conform to current
year’s presentation.
d) Investment in shares (Note: 08) has been restated in quoted and unquoted for fair presentation.
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TAKA
No. PARTICULARS
31.12.2018 31.12.2017
04. Property, Plant and Equipment

Details of Property, Plant and Equipment and Depreciation as on 31 December 2018 are shown in the annexed
Schedule - A. This is arrived at as follows:
Written Down Value (a-b) 549,252,300 608,167,963
Cost Value
Opening Balance - At Cost 742,188,636 405,480,073
Add: Addition during the year -At Cost 60,800 336,708,563
742,249,436 742,188,636
Less : Adjustment during the year - -
Closing Balance (a) 742,249,436 742,188,636
Accumulated Depreciation
Opening Balance 134,020,673 77,764,768
Add: Charged during the year 58,976,463 56,255,905
192,997,136 134,020,673
Closing Balance (b) 192,997,136 134,020,673
05 Margin Loan 2,467,417,247 2,465,716,400
As per Last Account 2,465,716,400 2,500,642,443
Add: During the year 1,776,271,962 3,720,528,091
4,241,988,362 6,221,170,534
Less: Received during the year 1,774,571,115 3,755,454,134
06 Accounts Receivable 20,494,316 21,241,611
BLI Securities Ltd. 14,910,720 18,199,626
AD Holdings Ltd. 2,380,715 3,274,407
National Securities & Consultants Ltd. 7,943 -
Int. Leasing Securities Ltd. 2,437,301 (232,422)
Accrued Income Note- 06.1 757,637 -
06.1 Accrued Income 757,637 -
Interest on portfolio loan 757,395 -
Accrued portfolio management fee 242 -
07 Advances, Deposits and Prepayments 90,507,003 77,121,808
Lease Rental (Eunoos Center) Note- 07.1 - 7,401,480
Corporate Income Tax Note- 07.2 90,239,488 68,338,491
Security Deposits-(As per Last Account) 238,915 238,915
Interest Receivable on Portfolio Loan - 757,396
Advance for Salary 28,600 28,600
Accounts Receivable (Others) - 356,926
07.1 Lease Rental (Eunoos Center) - 7,401,480
As per Last Account 7,401,480 14,802,960
Less : Adjustment during the year 7,401,480 7,401,480
451
TAKA
No. PARTICULARS
31.12.2018 31.12.2017
07.2 Corporate Income Tax 90,239,488 68,338,491

Add: Addition during the year (Advance Income Tax) 12,587,567 16,866,894
80,926,058 68,158,782
Add: Paid by Pay order for the year 2011-12 - 9,873
Add: Paid by Pay order for the year 2012-13 - 169,836
Add: Paid by Pay order for the year 2013-14 9,313,430 -
90,239,488 68,338,491
08 Investment in Quoted Shares Note- 08.01 2,553,196,239 2,456,875,942
As per Last Account 2,456,875,942 2,276,624,953
Add: Net investment during the year 96,320,297 180,250,988
08.01 The total amount is invested as under:
Exim Bank Ltd. 115,356,536 110,271,800
Bay Leasing & Investment Ltd. 382,935,045 382,935,046
National Life Insurance Co. Ltd. 1,462,000,069 1,462,000,069
Asia Insurance Co. Ltd. 39,043,100 39,043,100
Delta Life Insurance Co. Ltd. 77,664,988 77,330,736
GPH Ispat 13,059,608 12,284,522
KDS Accessories Ltd. 3,720,146 7,049,362
Western Marine Shipyard Ltd. 13,724,199 -
Runner Auto Mobiles Ltd. 1,080,825 -
SS Steel Ltd. 134,920 -
Prime Bank Ltd. 94,277,014 85,456,786
BBS Cables 6,540,668 -
Mobil Jamuna Ltd. 7,257,972 5,954,035
Intraco Refueling Station Ltd. 2,540 -
GBB Power Ltd. 12,157,161 11,836,582
United Power Goneration & Distribution Cr. 7,352,511 -
Barka Power Ltd. 25,134,499 20,713,799
Mozaffar Hossain Spining Mills Ltd. 12,887,618 12,887,618
Khulna Power Company ltd. 7,886,188 -
Argon Denims Ltd. 13,082,641 11,133,522
Queen South Textile Ltd. 1,349,035 -
VFS Thread Dyeing Ltd. 38,389 -
Esquire Knit Composit Ltd. 1,880,145 -
M..L Dyeing Ltd. 35,233 -
Kattali Textile Ltd. 100,640 -
Orion Pharma Ltd. 17,430,133 16,070,499
AFC Agro Biotech Ltd. 25,120,269 24,343,785
Active Fine Chemicals Lyd. 6,664,815 -
Indo-Bangla Pharmaceuticals Ltd. 2,677 -
Silva Pharmaceuticals Ltd. 91,940 -
Boshundhora Paper Mills Ltd. 12,978,480 -
Genex Infosys Ltd. 104,660 -
Confidence Cement Ltd. 7,015,880 -
ADN Telecom Ltd. 569,040 -
SK Trims & Industries Ltd. 50,410 -
JMI Syringes & Medical Devices Ltd. - 9,420,561
Heidelberg Cement Ltd. 10,343,914 7,211,819
Unique Hotels & Resorts Ltd. 19,370,853 28,506,766
Brac Bank Ltd. 8,003,965 -
IFIC Bank Ltd. 2,800,002 2,800,000
452
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TAKA
No. PARTICULARS
31.12.2018 31.12.2017
Beximco Ltd. 50,129,634 43,078,997

Beximco Pharma Ltd. - 2,386,760
ACI Formulations 8,341,067 5,540,214
C & N Textiles 12,992,031 12,169,572
Omiex - 64,800
IFID Auto - 459,469
Trust Bank Ltd 4,755,645 2,529,566
Dhaka Bank Ltd 17,461,794 11,153,360
FAS Finance & Investment 13,018,491 11,683,746
Uttara Finance 8,086,101 6,976,776
Pubali Bank Ltd 12,226,754 5,452,118
NAHEEACP - 62,246
Paramount Textile Ltd. - 13,722,341
BPML - 691,600
Dutch- Bangla Bank 16,935,993 13,653,967
2,553,196,239 2,456,875,942
09 Investment in Un Quoted Shares 172,600,000 131,000,000
VIPB(Non Listed) 3,500,000 3,500,000
Lub-rref (BD) Ltd. 127,500,000 127,500,000
BD Thai Food & Beveridge Ltd. 41,600,000 -
10 Cash and Cash Equivalents 23,324,151 32,538,042
Cash in hand - -
Cash at bank Note - 10.1 23,324,151 32,538,042
10.1 Cash at Bank 23,324,151 32,538,042
Southeast Bank Ltd -CD A/C- 1100007409 83,485 5,387,250
Southeast Bank Ltd -SND-13100000785 13,616,930 9,947,442
Southeast Bank Ltd -Al- Wadiah A/C- 11100006778 9,623,736 17,203,350
10 Share Capital 5,500,000,000 5,500,000,000

Authorised Capital:
600,000,000 shares of TK. 10/- each 6,000,000,000 6,000,000,000
Issued and Subscribed Capital:
550,000,000 shares of TK. 10/- each
Paid up Capital:
550,000,000 shares of TK. 10/- each 5,500,000,000 5,500,000,000
12 Retained Earnings 276,834 (10,487,637)

As per Last Account (10,487,637) (36,508,960)
Add: Profit/Loss during the year 10,764,471 26,021,323
13 Margin Deposit 37,532,362 27,524,421
Add: During the year 383,495,317 622,034,746
411,019,738 643,038,397
Less: Paid during the year 373,487,375 615,513,976
14 Advance Received for Rent 1,125,860 7,110,500
Add: Received during the year - -
7,110,500 13,095,140
Less: Adjustment during the year 5,984,640 5,984,640
453
TAKA
No. PARTICULARS
31.12.2018 31.12.2017
15 Collection in Transit 23,512,365 23,908,591

Add: Received during The year 2,508,397,879 5,739,017,933
2,532,306,470 5,806,052,959
Less: Paid during the year 2,508,794,105 5,782,144,368
16 Loan From ICB 54,208,826 -
As per Last Account - 7,687,819
Add: Received during the year 54,208,826 -
54,208,826 7,687,819
Less: Paid during the year - 7,687,819
17 Provision for Corporate Income Tax 94,132,785 80,815,923
Add: Addition during the year 13,316,862 18,983,984
94,132,785 80,815,923
18 Provision for Diminution in Value of Investments 153,692,107 153,692,107
Opening Balance 153,692,107 114,303,939
Add:/(Less): During the year Note-24 - 39,388,168
19 Accrued Expenses 637,740 155,483

Interest on ICB Loan 451,740 -
CDBL Bill 110,000 82,383
Audit Fee 69,000 69,000
News paper Bill - 1,100
Telephone Bill 7,000 3,000
20 Other Liabilities 11,672,375 9,942,376

Accounts Payable (Others) 1,904,774 1,904,776
IPO Application Fund 9,267,600 8,037,600
Provision for Gratuity 500,000 -
Taka
01.01. 2018 to 01.01. 2017 to
31.12.2018 31.12.2017
21 Other Income 4,308,624 4,273,920
Rental Income 4,273,920 4,273,920
Miscellaneous Income 34,704 -
22 Salary & Allowances 12,546,929 10,295,856
Salary & Allowances 9,189,947 7,438,884
Festival Bonus 878,780 750,750
Incentive Bonus - 235,100
Leave Fare Concession 1,962,480 1,475,937
Provident Fund Contribution 515,722 395,185
23 Financial Expenses 2,196,982 5,791,226
Interest on ICB Loan 2,196,982 -
Interest on Loan-SEBL A/C No. 12594 - 204,113
Interest on Loan-SEBL A/C No. 12091 - 1,806,452
Interest on Loan-SEBL A/C No. 12229 - 19,183
Interest on Loan-SEBL A/C No. 12030 - 3,761,479
24 Provision for Diminution in Value of Investments - (39,388,168)
Opening Balance 153,692,107 114,303,939
Less: Required on 31 December 2018 153,692,107 153,692,107
454
Particulars
Property, Plant and Equipment Schedule - A
Cost Depreciation
Rate W.D.V as on
Name of Assets Balance as on Addition Balance as on Balance as on Charged during Balance as on
of % 31.12.2018
01.01.2018 during the year 31.12.2018 01.01.2018 the year 31.12.2018
Land 24,727,531 - 24,727,531 - - - 24,727,531
Buildings 676,425,111 - 676,425,111 10% 120,790,627 55,563,448 176,354,075 500,071,036
Furniture & Fixture 29,353,862 16,410 29,370,272 10% 7,736,462 2,163,381 9,899,843 19,470,429
Electrical Appliance 10,382,132 44,390 10,426,522 20% 4,203,740 1,244,556 5,448,296 4,978,226
Computer Software 1,300,000 - 1,300,000 50% 1,289,844 5,078 1,294,922 5,078
Total 742,188,636 60,800 742,249,436 134,020,673 58,976,463 192,997,136 549,252,300
Annual Report 2018
455
a bank with vision
SOUTHEAST FINANCIAL SERVICES (UK) LTD.

Report of the Directors and Unaudited Financial Statements
Period of accounts
Start date: 01 January 2018
End date: 31 December 2018
456
a bank with vision
SOUTHEAST FINANCIAL SERVICES (UK) LTD

Company Information
DIRECTORS Alamgir Kabir, FCA
M Kamal Hossain
Muhammad Nazmul Huda Azad
REGISTERED NUMBER 07539137
REGISTERED OFFICE 22 NEW ROAD

LONDON
E1 2AX
ACCOUNTANTS Jahan & Co

Chartered Management Accountants
22 Osborn Street
London
E1 6TD
457

Directors’ Report
The directors present their annual report and the audited financial statements for the year ended 31 December 2018.
Principal activities
Principal activity of the company during the financial year was of financial intermediation.
Directors
The directors who served the company throughout the year were as follows:
Alamgir Kabir, FCA
M Kamal Hossain
Muhammad Nazmul Huda Azad
Statement of Directors’ responsibilities
The directors are responsible for preparing the directors’ report and the financial statements in accordance with
applicable law and regulations and in accordance with United Kingdom Generally Accepted Accounting Practice.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors
have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting
Practice (Financial Reporting Standard 102). Under company law the directors must not approve the financial statements
unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of
the company for that period.
In preparing these financial statements, the directors are required to:
 select suitable accounting policies and then apply them consistently
 make judgements and accounting estimates that are reasonable and prudent
 state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed
and explained in the financial statements and
 prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company
will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the
company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and
enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible
for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on
the company’s website. Legislation in the United Kingdom, governing the preparation and dissemination of financial
statements, may differ from legislation in other jurisdictions
Each director who held office at the date of approval of this report confirms that: so far as the director is aware, there is
no relevant audit information needed by the company’s auditor in connection with preparing their report of which the
company’s auditor is unaware; and the director has taken all the steps that they ought to have taken as a director in order
to be aware of any relevant audit information and to establish that the company’s auditor is aware of that information .
This report was approved by the board and signed on its behalf.
MUHAMMAD NAZMUL HUDA AZAD

Director
Date Approved: 13 January 2019
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Accountants’ Report
In order to assist you to fulfil your duties under Companies Act 2006, we have prepared for your approval the accounts
of SOUTHEAST FINANCIAL SERVICES (UK) LTD for the year ended 31 December 2018 which comprise the Statement of
Comprehensive Income, the Statement of Financial Position and related notes from the company’s accounting records
and from information and explanations you have given us.
As a practising member of the Chartered Institute of Management Accountants, we are subject to its ethical and other
professional requirements which are detailed at CIMA’s website.
This report is made solely to the member of SOUTHEAST FINANCIAL SERVICES (UK) LTD, as a body, in accordance with
the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts
of SOUTHEAST FINANCIAL SERVICES (UK) LTD and state those matters that we have agreed to state to the Board of
SOUTHEAST FINANCIAL SERVICES (UK) LTD, as a body, in this report in accordance with the requirements of the Chartered
Institute of Management Accountants and as detailed at its website. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than SOUTHEAST FINANCIAL SERVICES (UK) LTD and its members as a
body for our work or for this report.
It is your duty to ensure that SOUTHEAST FINANCIAL SERVICES (UK) LTD has kept adequate accounting records and
to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and Profit of
SOUTHEAST FlNANCIAL SERVICES (UK) LTD. You consider that SOUTHEAST FINANCIAL SERVICES (UK) LTD is exempt
from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the accounts of SOUTHEAST FINANCIAL SERVICES (UK)
LTD. For this reason, we have not verified the accuracy or completeness of the accounting records or information and
explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.
Jahan & Co
Chartered Management Accountants
22 Osborn Street
London
E1 6TD
13 January 2019
459

Income Statement
2018 2017
Notes
£ £
Turnover 214,992 229,246

Gross profit 214,992 229,246
Selling and Distribution costs (4,228) (2,029)
Administrative expenses (207,471) (198,784)
Operating profit 2 3,293 28,433
Profit/Loss on ordinary activities before taxation 3,293 28,433
Tax of profit on ordinary activities - -
Profit/Loss for the financial year 3,293 28,433
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Statement of Financial Position
2018 2017
Notes
£ £
Fixed assets
Tangible fixed assets 5 13,240 15,734
13,240 15,734
Current Asset
Debtors 6 110,657 119,253
Cash at bank and in hand 51,523 97,181
162,180 216,434
Creditors: Amounts falling due within one year 7 (31,410) (91,451)
Net Current Assets 130,770 124,983
Total Assets less current liabilities 144,010 140,717

Net Assets 144,010 140,717
Capital and reserves
Called up share capital 8 300,000 300,000

Profit and loss account 9 (155,990) (159,283)
Shareholders funds 144,010 140,717
For the year ended 31 December 2018 the company was entitled to exemption from audit under section 477 of the
companies act 2006 relating to small companies.
Directors’ Responsibilities:
1. The members have not required the company to obtain an audit of its accounts for the year in question in accordance
with section 476
2. The directors acknowledge their responsibilities for complying with the requirements of the companies act 2006 with
respect to accounting records and the preparation of accounts
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small
companies regime of part 15 of the companies Act 2006
Signed on behalf of the board of directors
MUHAMMAD NAZMUL HUDA AZAD

Director
Date Approved by the Board: 13 January 2019
461

General Information
SOUTHEAST FINANCIAL SERVICES (UK) LTD is a private company, limited by shares, registered in England and Wales,
registration number 07539137, registration address 22 NEW ROAD, LONDON, E1 2AX.
1. Accounting Policies
Significant accounting policies
Statement of compliance
These financial statements have been prepared in compliance with FRS 102- The Financial Reporting Standard applicable
in the UK and Republic of Ireland and the Companies Act 2006.
Basis of preparation
The financial statements have been prepared on the going concern basis and under the historical cost convention as
modified by the revaluation of land and buildings and certain financial instruments measured at fair value in accordance
with the accounting policies.
The financial statements are prepared in sterting which is the functional currency of the company.
Turnover
Turnover comprises the invoiced value of goods and services supplied by the company, net of Value Added Tax and
trade discounts.
Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rate of exchange
ruling at the statement of financial position date. Transactions in foreign currencies are recorded at the rate ruling at the
date of the transaction. All foreign exchange differences are included to the income statement
Tangible fixed assets
Tangible fixed assets, other than freehold land, are stated at cost or valuation less depreciation and any provision for
impairment. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their
estimated residual value, over their expected useful lives on the following basis:
Computer Equipment 20% Reducing balance
Fixtures and Fittings 20% Reducing balance
Short Leasedhold Properties 7.14 Years Straight Line
2. Operating Profit/(Loss)
2018 2017
£ £
The operating Profit/Loss is stated after charging/(crediting):
Directors' emoluments 53,711 45,442

Depreciation of tangible fixed assets 3,826 7,908
3. Directors’ Emoluments
Directors Salaries 53,711 45,442
53,711 45,442
4. Staff costs
Wages and salaries 50,729 58,087
Pension costs, defined contribution plan 2,200 501
Other staff costs 2,444 1,927
55,373 60,515
Average number of employees during the year Number Number
Administration 2 2
Sales 5 4
7 6
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5. Tangible Fixed Assets

Short Fixtures
Computer
Leasehold and Total
Equipment
Properties Fittings £
£
£ £
Cost
At 01 January 2018 30,000 48,847 9,911 88,758
Additions - - 1,332 1,332
Disposals - - - -
At 31 December 2018 30,000 48,847 11,243 90,090
Depreciation
At 01 January 2018 29,100 36,816 7,108 73,024
Charge for the year 900 2,232 694 3,826
On Disposals - - - -
At 31 December 2018 30,000 39,048 7,802 76,850
Net Book values
Closing balance as at 31 December 2018 - 9,799 3,441 13,240
Opening balance as at 01 January 2018 900 12,030 2,804 15,734
2018 2017
£ £
6. Debtors: amount falling due within one year

Trade Debtors - 102,253
Amounts Owned by Group Undertakings 2,000 2,000
Prepayments and Accurals Income 6,188 6,000
Deposits paid 9,000 9,000
Cash in Transit 93,373 -
Foreign Currency Translation Reserve 96 -
110,657 119,253
7. Creditors: amount falling due within one year
Amounts Owed to Group Undertakings 25,731 -
PAYE control and Social Security 4,507 5,262
Accrued Expenses 951 950
Other Creditors - 85,104
Pension Scheme 221 135
31,410 91,451
8. Share Capital
Allotted
300000 Ordinary shares of £ 1.00 each 300,000 300,000
300,000 300,000
9. Profit and Loss account
Balance at 01 January 2018 (159,283)
Profit for the year 3,293
Balance at 31 December 2018 (155,990)
463

Detailed Income Statement
2018 2017
£ £
Turnover
Fee Income 22,452 23,714
Remittance Commissions 113,693 99,555
Exchange Rate Gain 78,847 105,977
214,992 229,246
Gross Profit 214,992 229,246
Selling and Distribution Costs
Advertising 4,077 1,944
Travel & Subsistence 151 85
(4,228) (2,029)
Administrative Expenses:
Wages & Salaries 50,729 58,087
Pension Contributions 2,200 501
Staff Training 1,152 350
Staff Welfare 1,292 1,577
Direcrors Salaries 53,711 45,442
Accountancy Fees 3,700 3,800
Legal and Professional Fees(Allowable) 55 2,664
Customer Due Diligence - 191
Heat, Light & Power 1,241 1,612
Cleaning of Premises 1,350 783
Rent, Rates & Insurance 33,592 33,553
Bad Debts Written Off (Specific) - 76
Bank Charges 36,957 30,652
Depreciation Charges: Leasehold Properties 900 4,200
Depreciation Charges: Fixtures and Fittings 2,232 3,007
Depreciation charges: Computer Equipment 694 701
Fees & Subscriptions 7,415 3,431
General Insurance 562 926
Computer Expenses 938 427
Repairs & Renewals 765 1,385
Stationery & Postage 2,486 1,535
Telephone, Fax & Internet 3,810 2,617
Sundry Expenses 1 -
Security Expenses 1,689 1,267
(207,471) (198,784)
Operating Profit 3,293 28,433
Profit/Loss for the financial year 3,293 28,433
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Southeast Financial Services (Australia) Pty Ltd

ABN 40 160 673 165
FINANCIAL REPORT
465

ABN 40 160 673 165
BALANCE SHEET
31 December 2018 31 December 2017

AUD AUD
ASSETS
Current Assets
Cash on Hand 1,039.33 24.80
Westpac Cash Reserve - 321653 - 117.44
SEBL Account 2,302.42 302.42
Receivables 9,862.00 17,426.40
Office Bond Deposit - 19,119.04
13,203.75 36,990.10
Non-current Assets
SB General pool 42,652.06 42,652.06
Less accumulated depreciation (32,473.19) (30,988.69)
10,178.87 11,663.37
TOTAL ASSETS 23,382.62 48,653.47
LIABILITIES
Current Liabilities
PAYG withhold payable 15,383.53 14,733.53
SEBL Account 19,488.96 24,488.96
Rent Payable - 6,123.40
Superannuation payable 6,360.49 6,190.49
Provision for GST (27,908.94) (27,252.94)
13,324.04 24,283.44
EQUITY
Share Capital 312,082.90 312,082.90
Retained Earnings
Accumulated Losses beginning of the period (287,712.87) (292,909.68)
Profit/(Loss) for the Period (14,311.45) 5,196.81
TOTAL EQUITY 10,058.58 (287,712.87)
Total Liability & Equity 23,382.62 48,653.47
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ABN 40 160 673 165
31 December 2018 31 December 2017

AUD AUD
INCOME
Interest Earned - 0.62
Commission Collected - 1,858.29
Exchange gain - 5,449.30
Other Income - 12,708.77
- 20,016.98
EXPENDITURE
Printing and Stationery - 131.45
Depreciation - SB general pool 1,484.50 2,909.00
Rental expenses 9,901.31 5,161.00
Telephone, mobile and fax 242.64 551.74
Bank charges - 1,978.18
Motor vehicle expenses - 448.80
Other vehicles expenses 38.00 -
Superannuation 170.00 340.00
Wages 2,475.00 3,300.00
Total 14,311.45 14,820.17
Profit/Loss for the period (14,311.45) 5,196.81
467

ABN 40 160 673 165
NOTES TO THE FINANCIAL STATEMENTS
For the period ended 31 December 2018
Notes 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICY
This financial report is special purpose financial report prepared for use by directors and members of the company.
The directors have determined that the company is not a reporting entity
The financial report is prepared in accordance wit the requirements of the following Australian Accounting Standards:
AASB 1031: Materiality
AASB 110: Events after the Balance sheet Date
The financial report is prepared on an accruals basis and is based on historic costs and does not take into account
changing money values or ,except where specifically stated,current valuations of non current assets.
The following specific accounting policies, which are consistent with the previous period unless otherwise stated,have
been adopted in the preparation of this report:
i. Property Plant and Equipment
Property, Plant and equipment are carried at cost, independent or directors' valuation. All assets excluding freehold
land and buildings are depreciated over their useful lives to the company.
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SOUTHEAST EXCHANGE COMPANY

(SOUTH AFRICA) (PROPRIETARY) LIMITED
(REGISTRATION NUMBER 2011/008619/07)
ANNUAL FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2018
469
Southeast Exchange Company (South Africa) (Proprietary) Limited

Annual Financial Statements for the year ended 31 December 2018
General Information
Country of incorporation and domicile South Africa

Nature of business and principal activities Facilitator of funds remittance
Directors Alamgir Kabir
M Kamal Hossain
Registered office and Business Address 9 Dolly Rathebe Road
Corner Mint Road
Fordsburg
Johannesburg
2092
Tax reference number 9084402180
Holding company Southeast Bank Limited

incorporated in Bangladesh
Bankers Standard Bank of South Africa
First National Bank
Auditors GL Palmer and Company
Registered Auditors
Level of Assurance These annual financial statements have been audited in
compliance with the applicable requirements of the South African
Reserve Bank
Preparer The annual financial statements were independently compiled by:
MM Zackey CA(SA)
Issued 31 January 2019
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Independent Auditors' Report

To the shareholder of Southeast Exchange Company (South Africa) (Proprietary) Limited
Opinion
We have audited the annual financial statements of Southeast Exchange Company (South Africa) (Proprietary) Limited set
out on pages 10 to 20, which comprise the Statement of Financial Position as at 31 December 2018, and the Statement
of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and
notes to the annual financial statements, including significant accounting policies.
In our opinion, the annual financial statements present fairly, in all material respects, the financial position of Southeast
Exchange Company (South Africa) (Proprietary) Limited as at 31 December 2018, and its financial performance and
cashflows for the year then ended in accordance with the International Financial Reporting Standard for Small and
Medium-sized Entities and the requirements of the Companies Act 71 of 2008.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing. Our responsibilities under those
standards are further described in the Auditors’ Responsibilities for the Audit of the annual financial statements
section of our report. We are independent of the company in accordance with the Independent Regulatory Board
for Auditors’ Code of Professional Conduct for Registered Auditors (IRBA Code) and other independence requirements
applicable to performing audits of annual financial statements in South Africa. We have fulfilled our other ethical
responsibilities in accordance with the IRBA Code and in accordance with other ethical requirements applicable to
performing audits in South Africa. The IRBA Code is consistent with the International Ethics Standards Board for
Accountants Code of Ethics for Professional Accountants (Parts A and B). We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
annual financial statements of the current period. These matters were addressed in the context of our audit of the
annual financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.
We have determined that there are no key audit matters to communicate in our report.
Other information
The directors are responsible for the other information. The other information comprises the Directors’ Report as
required by the Companies Act 71 of 2008, which we obtained prior to the date of this report. Other information does
not include the annual financial statements and our auditors’ report thereon.
Our opinion on the annual financial statements does not cover the other information and we do not express an audit
opinion or any form of assurance conclusion thereon.
In connection with our audit of the annual financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the annual financial statements
or our knowledge 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 material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Annual Financial Statements
The directors are responsible for the preparation and fair presentation of the annual financial statements in accordance
with the International Financial Reporting Standard for Small and Medium-sized Entities and the requirements of
the Companies Act 71 of 2008, and for such internal control as the directors determine is necessary to enable the
preparation of annual financial statements that are free from material misstatement, whether due to fraud or error.
471
In preparing the annual financial statements, the directors are 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 the directors either intend to liquidate the company or to cease operations, or have no realistic
alternative but to do so.
Auditors’ responsibilities for the audit of the Annual Financial Statements
Our objectives are to obtain reasonable assurance about whether the annual financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditors’ 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
International Standards on Auditing 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 annual financial statements.
As part of an audit in accordance with International Standards on Auditing, we exercise professional judgment and
maintain professional scepticism throughout the audit. We also:
 Identify and assess the risks of material misstatement of the annual 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. 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.
 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.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
 Conclude on the appropriateness of the directors’ 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 to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditors’ report to the related disclosures in the annual 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 auditors report. However, future events or conditions may cause the
company to cease to continue as a going concern.
 Evaluate the overall presentation, structure and content of the annual financial statements, including
the disclosures, and whether the annual financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
We communicate with the directors 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.
GL PALMER AND COMPANY

Registered Auditors
Philippos Philippou (CA) SA
Partner
Johannesburg
31 January 2019
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Directors’ Responsibilities and Approval
The directors are required by the Companies Act 71 of 2008. to maintain adequate accounting records and are
responsible for the content and integrity of the annual financial statments and related financial information included in
this report. It is their responsibility to ensure that the annual financial statements fairly present the state of affairs of the
company as at the end of the financial year and the results of its operations and cash flows for the period then ended,
in conformity with the International Financial Reporting Standard for Small and Medium-sized Entities. The external
auditors are engaged to express an independent opinion on the annual financial statements.
The annual financial statements are prepared in accordance with the International Financial Reporting Standard for Small
and Medium-sized Entities and are based upon appropriate accounting policies consistently applied and supported by
reasonable and prudent judgements and estimates.
The directors acknowledge that they are ultimately responsible for the system of internal financial control established
by the company and place considerable importance on maintaining, a strong control environment. To enable the
directors to meet these responsibilities. the board sets standards for internal control aimed at reducing the risk of error
or loss in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined
framework. effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk.
These controls are monitored throughout the company and all employees are required to maintain the highest ethical
standards in ensuring the company’s business is conducted in a manner that in all reasonable circumstances is above
reproach. The focus of risk management in the company is on identifying, assessing, managing and monitoring all known
forms of risk across the company. While operating risk cannot be fully eliminated. the company endeavours to minimise
it by ensuring that appropriate infrustructure, controls, systems and ethical behaviour are applied and managed within
predetermined procedures and constraints.
The directors are of the opinion, based on the information and explanations given by management, that the system of
internal control provides reasonable assurance that the financial records may be relied on for the preparation of the
annual financial statements. However. any system of internal financial control can provide only reasonable, and not
absolute, assurance against material misstatement or loss.
The directors have reviewed the company’s cash flow forecast for the year to 31 December 2019 and, in light of this
review and the current financial position, they are satisfied that the company has or has access to adequate
resources to continue in operational existence for the foreseeable future.
The external auditors are responsible for independently auditing and reporting on the company’s annual financial
statements. The annual financial statements have been examined by the company’s external auditors and their report
is presented on pages 3 to 5.
The annual financial statements set out on pages 10 to 22 which have been prepared on the going concern basis, were
approved by the board on 31 January 2019 and were signed on its behalf by:
Alamgir Kabir
M Kamal Hossain
Bangladesh
473

Directors’ Report
The directors have pleasure in submitting their report on the annual financial statements of Southeast Exchange
Company (South Africa) (Proprietary) Limited For the year ended 31 December 2018.
1. Nature of business
Southeast Exchange Company (South Africa) (Proprietary) Limited was incorporated in and operates in South
Africa with interests in the facilitator of funds remittance industry.
There have been no material changes to the nature of the Company's business from the prior year.
2. Review of financial results and activities
The annual financial statements have been prepared in accordance with the International Financial Reporting
Standard for Small and Medium size Entities and the requirements of the Companies Act 71 of 2008. The
accounting policies have been applied consistently compared to the prior year.
Full details of the financial position, results of operations and cash flows for the company are set our in these
annual financial statements.
2018 2017
3. Share capital Number of Shares
Authorised
Ordinary shares of R1 par value 4 000 4 000
2018 2017 2018 2017
R R Number of Shares
Issued
Ordinary shares of R1 par value 120 120 120 120
There have been no changes to the authorised or issued share capital during the year under review (2017-
Nill).
4. Control over unissued shares
The unissued ordinary shares are the subject of a general authority granted to the directors in terms of sec-
tion 38 of the Companies Act 71 of 2008. As this general authority remains valid only until the next AGM, the
shareholder will be asked at that meeting to consider an ordinary resolution placing the said unissued ordinary
shares under the control of the directors until the next AGM.
5. Dividends
Given the current state of the global economic environment, the board believes that it would be more appro-
priate for the company to conserve cash and maintain adequate debt headroom to ensure that the company
is best placed to withstand any prolonged adverse economic conditions. Therefore the board has resolved not
to declare a dividend for the financial year ended 31 December 2018 (2017- R2 700 000).
6. Directors
The directors in office at the date of this report are as follows :
Directors
Alamgir Kabir
M Kamal Hossain
7. Directors' interests in contracts
During the financial year, no contracts were entered into which directors or officers of the Company had an
interest and which significantly affected the business of the company.
8. Property, plant and equipment
There was no change in the nature of the property, plant and equipment of the company or in the policy
regarding their use.
At 31 December 2018 the company's investment in property, plant and equipment amounted to R640 919
(2017- R394 402), of which R467 439 (2017 - R131 600) was added in the current year through additions.
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Directors’ Report
9. Special resolutions
No special resolutions, the nature of which might be significant to the shareholder in its’ appreciation of the
state of affairs of the Company were made by the company during the period covered by this report .
10. Events after the reporting period
The directors are not aware of any material event which occurred after the reporting date and up to the date of
this report.
11. Going concern
The directors believe that the company has adequate financial resources to continue in operation for the
foreseeable future and accordingly the annual financial statements have been prepared on the going concern
basis. The directors have satisfied themselves that the Company is in a sound financial position and that it has
access to sufficient borrowing facilities to meet its foreseeable cash requirements. The directors are not aware
of any new material changes that may adversely impact the company. The directors are also not aware of any
material non-compliance with statutory or regulatory requirements or of any pending changes to legislation
which may affect the company.
12. Litigation statement
The Company is not currently involved in any claims or lawsuits, which individually or in the aggregate, are
expected to have a material adverse effect on the business or its assets.
13. Auditors
GL Palmer and Company continued in office as auditors of the Company for 2018.
At the AGM, the shareholder will be requested to reappoint GL Palmer and Company as the independent
external auditors of the Company and to confirm Mr. Philippos Philippou (CA) SA as the designated lead audit
partner for the 2019 financial year.
14. Secretaries
The company secretaries are GLP Secretarial Services CC.
Postal address PO Box 220
Bruma
Johannesburg
2026
Business address 22A Ernest Oppenheimer Avenue
Bruma
Johannesburg
2198
15. Date of authorisation for issue of financial statements
The annual financial statements have been authorised for issue by the directors on 31 January 2019. No author-
ity was given to anyone to amend the financial statements after the date of issue .
475

Statement of Financial Position as at 31 December 2018
Figures in Rand Note 2018 2017
Assets
Non-current Assets 2
Property, plant and equipment 640 919 394 402
Current Assets
Trade and other receivables 3 1 266 993 1 588 899
Cash and cash equivalents 4 27 197 221 14 959 581
28 464 214 16 548 480
29 105 133 16 942 882
Total Assets
Equity and Liabilities
Equity
Share capital 5 120 120
Non-distributable reserve 6 632 059 6 632 059
Retained income 13 331 942 6 242 677
19 964 121 12 874 856
Liabilities
Non-Current Liabilities 6 302 513 -
Instalment sale obligations
Current Liabilities
Trade and other payables 7 8 668 117 3 978 758
Instalment sale obligations 6 87 049 -
Current tax payable 83 333 89 268
8 838 499 4 068 026
Total Liabilities 9 141 012 4 068 026
Total Equity and Liabilities 29 105 133 16 942 882
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Statement of Comprehensive Income
Revenue 8 14 810 892 12 854 644

Other income 9 - 27 060
Operating expenses (6 415 497) (5 028 436)
Operating profit 8 395 395 7 853 268
Investment revenue 10 1 454 247 754 998
Finance costs 11 (12 581) (104)
Profit before taxation 9 837 061 8 608 162
Taxation 12 (2 747 796) (2 407 190)
Profit for the year 7 089 265 6 200 972
Other comprehensive income - -
Total Comprehensive income for the year 7 089 265 6 200 972
477

Statement of Changes in Equity
Share Non-distributable Retained

Figures in Rand Total equity
Capital reserve income
Balance at 01 January 2017 120 6 632 059 2 741 705 9 373 884
Profit for the year - - 6 200 972 6 200 972
Other comprehensive income - - - -
Total comprehensive income for the period - - 6 200 972 6 200 972
Total Changes - - ( 2 700 000) ( 2 700 000)
Balance at 01 January 2018 120 6 632 059 6 242 677 12 874 856
Other comprehensive income - - - -
Total comprehensive income for the year - - 7 089 265 7 089 265
Balance at 31 December 2018 120 6 632 059 13 331 942 19 964 121
Note 5
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Statement of Cash Flows
Cash flows from operating activities
Cash generated from operations 14 13 627 582 8 189 551

Interest income 1 454 247 754 998
Finance costs (12 581) (104)
Tax paid 15 (2 753 731) (2 170 141)
Net cash from operating activities 12 315 517 6 774 304
Cash flows from investing activities
Purchase of property, plant and equipment 2 (467 439) (131 600)
Cash flows from financing activities
Movement in instalment sale obligation 389 562 -

Dividends paid - (2 700 000)
Net Cash flows from financing activities 389 562 (2 700 000)
Total cash movement for the year 12 237 640 3 942 704
Cash at the beginning of the year 14 959 581 11 016 877
Total cash at end of the year 4 27 197 221 14 959 581
479

Accounting Policies
1. Basis of preparation and summry of significant accounting policies
The annual financial statements have been prepared on a going concern basis in accordance with the
International Financial Reporting Standard for Small and Medium-sized Entities, and the Companies Act 71 of
2008. The annual financial statements have been prepared on the historical cost basis, and incorporate the
principal accounting policies set out below. They are presented in South African Rand.
These accounting policies are consistent with those applied in the previous year.
1.1 Property, plant and equipment
Property, plant and equipment are tangible assets which the company holds for its own use which are expected
to be used for more than one period. Property, plant and equipment is carried at cost less accumulated
depreciation and accumulated impairment losses.
Property, plant and equipment is initially measured at cost.
Cost includes costs incurred initially to acquire or construct an item of property, plant and equipment and costs
incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognized in the carrying
amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised.
Depreciation of an asset commences when the asset is available for use as intended by management. Depreciation
is charged to write off the asset’s carrying amount over its estimated useful life to its estimated residual value, using
a method that best reflects the pattern in which the asset’s economic benefits are consumed by the company
The useful lives of items of property, plant and equipment have been assessed as follows:
Depreciation Average
Item
method useful life
Leasehold improvements Straight line 5 years
Motor vehicles Straight line 5 years
Office equipment Straight line 3 years
Computer equipment Straight line 3 years
1.4 Leases
A Lease is classified as finance lease if it transfers substantially all the risks and rewards incidental to ownership
to the lessee. All other leases are operating leases.
Operating leases – lessee
Operating lease payments are recognised as an expense on a straight-line basis over the lease term unless:
 another systematic basis is representative of the time pattern of the benefit from the leased asset, even if
the payments are not on that basis, or
 the payments are structured to increase in line with expected general inflation (based on published
indexes or statistics) to compensate for the lessor’s expected inflationary cost increases.
Any contingent rents are expensed in the period they are incurred.
1.3 Financial instruments
Initial measurement
Financial instruments are initially measured at the transaction price (including transaction costs except in
the initial measurement of financial assets and liabilities that are measured at fair value through profit or loss)
unless the arrangement constitutes, in effect, a financing transaction in which case it is measured at the present
value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial instruments at amortised cost
These include loans, trade receivables and trade payables. Those debt instruments which meet the
criteria in section 11.8(b) of the standard, are subsequently measured at amortised cost using the effective
interest method. Debt instruments which are classified as current assets or current liabilities are measured
at the undiscounted amount of the cash expected to be received or paid, unless the arrangement effectively
constitutes a financing transaction.
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Accounting Policies
At each reporting date, the carrying amounts of assets held in this category are reviewed to determine whether
there is any objective evidence of impairment. If there is objective evidence, the recoverable amount is estimated
and compared with the carrying amount. If the estimated recoverable amount is lower, the carrying amount is
reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.
Financial instruments at cost
Commitments to receive a loan are measured at cost less impairment.
Equity instruments that are not publicly traded and whose fair value cannot otherwise be measured reliably
without undue cost or effort are measured at cost less impairment.
1.4 Tax
Current tax assets and liabilities
Current tax for current and prior periods is, to the extent unpaid, recognised as a liability. If the amount already
paid in respect of current and prior periods exceeds the amount due for those periods, the excess is recognised
as an asset.
Current tax liabilities (assets) for the current and prior periods are measured at the amount expected to be
paid to (recovered from) the tax authorities, using the tax rates (and tax laws) that have been enacted or
substantively enacted by the reporting date.
The tax liability reflects the effect of the possible outcomes of a review by the tax authorities.
Deferred tax assets and liabilities
A deferred tax liability is recognised for all taxable temporary differences.
A deferred tax asset is recognised for all deductible temporary differences and for the carry forward of unused
tax losses and unused tax credits.
Deferred tax assets and liabilities are measured at an amount that includes the effect of the possible outcomes
of a review by the tax authorities using tax rates that, on the basis of enacted or substantively enacted tax law
at the end of the reporting period, are expected to apply when the deferred tax asset is realised or the deferred
tax liability is settled.
Deferred tax asset balances are reviewed at every reporting date. When necessary, a valuation allowance is
recognised against the deferred tax assets so that the net amount equals the highest amount that is more likely
than not to be realised on the basis of current or future taxable profit.
Tax expenses
Tax expense is recognised in the same component of total comprehensive income or equity as the transaction
or other event that resulted in the tax expense.
1.5 Share capital and equity
If the company reacquires its own equity instruments, those instruments are deducted from equity. No gain
or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the company's own equity
instruments. Consideration paid or received shall be recognised directly in equity.
Ordinary shares are recognised at par value and classified as 'share capital' in equity. Any amounts received from
the issue of shares in excess of par value is classified as 'share premium' in equity. Dividends are recognised as
a liability in the year in which they are declared.
1.6 Revenue
Interest is recognised, in profit or loss, using the effective interest rate method.
Service fees included in the price of the product are recognised as revenue over the period during which the
service is provided.
1.7 Foreign exchange
Foreign currency transactions
Exchange differences arising on monetary items are recognised in profit or loss in the period in which they arise.
The foreign exchange component of a non-monetary item is recognised consistently with any other gains or
losses on those items, in other comprehensive income or in profit or loss.
481

Notes to the Annual Financial Statements
Figures in Rand 2018 2017
2. Property, plant and equipment
2018 2017
Cost Accumulated Carrying Cost Accumulated Carrying
depreciation value depreciation value
Leasehold improvements 625 800 (515 798) 110 002 625 800 (391 500) 234 300
Motor vehicles 399 987 (778) 399 209 - - -
Office equipment 87 634 (59 233) 28 401 87 634 (32 072) 55 562
Computer equipment 369 875 (266 568) 103 307 302 423 (197 883) 104 540
Total 1 483 296 (842 377) 640 919 1 015 857 (621 455) 394 402
Reconciliation of property, plant and equipment - 2018
Opening
Additions Depreciation Total
balance
Leasehold improvements 234 300 - (124 298) 110 002
Motor vehicles - 399 987 (778) 399 209
Office equipment 55 562 - (27 161) 28 401
Computer equipment 104 540 67 452 (68 685) 103 307
394 402 467 439 (220 922) 640 919
3. Trade and other receivables
Accrued income 7 755 17 309
Cash in transit 999 360 1 546 790
Deposits 24 800 24 800
Prepayments 228 198 -
Sundry debtors 6 880 -
1 266 993 1 588 899
4. Cash and cash equivalents
Cash and cash equivalents consist of: 4 186
Cash on hand 27 197 217 14 959 395
Bank balances 27 197 221 14 959 581
Included in the above bank balances figure at year end, is an amount of R 5 000 000 (2017 - R 5 000 000) which is
an unimpaired capital requirement of the South African Reserve Bank.
5. Share capital
Authorised
4000 Ordinary shares with par value of R 1 4 000 4 000
3880 unissued ordinary shares are under the control of the directors in terms of a resolution of members passed
at the last annual general meeting. This authority remains in force until the next annual general meeting.
Issued
Ordinary shares with par value of R 1 120 120
6. Instalment sale obligations
Minimum lease payments which fall due
within one year 87 049 -
in second to fifth year inclusive 388 036 -
475 085 -
Less: future finance charges (85 523) -
Present value of minimum lease payments 389 562 -
Non current liabilities 302 513 -

Current liabilities 87 049 -
389 562
It is company policy to lease certain motor vehicles under finance leases.
The company’s obligations under finance leases are secured by the leased assets. Refer note 2.
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7. Trade and other payables
Trade payables 8 411 929 3 756 765
Value added tax 78 924 81 483
Accrual for audit fees 105 100 81 510
Other payables 72 164 59 000
8 668 117 3 978 758
8. Revenue
Exchange gain income 5 134 908 5 512 991
Online charge 652 997 -
Commissions and transaction fees 9 022 987 7 341 653
14 810 892 12 854 644
9. Other income
Sundry income - 27 060
10. Investment revenue
Interest revenue
Bank 1 454 247 752 488
SARS interest income - 2 510
1 454 247 754 998
11. Finance costs
late payment of tax 2 385 -
Interest paid 47 104
Finance charges 10 149 -
12 581 104
12. Taxation
Major components of the tax expense
Current taxation
Local income tax - current period 2 747 796 2 385 268
Local income tax - recognised in current tax for prior periods - (3 095)
2 747 796 2 382 173
Deferred taxation
South African deferred tax-current year - 25 017
- 25 017
2 747 796 2 407 190
Reconciliation of the tax expense
Reconciliation between accounting profit and tax expense.
Accounting profit 9 837 061 8 608 162
Tax at the applicable tax rate of 28% (2017: 28%) 2 754 377 2 410 285
Tax effect of adjustments on taxable income
Non-deductible expenses 885 71 314
Temporary differences (7 466) (96 331)
Over Provision - (3 095)
2 747 796 2 382 173
483


13. Auditors' remuneration
Fees 105 100 81 510
Adjustment for previous year 19 739 513
124 839 82 023
14. Cash generated from operations

Adjustments for:
Depreciation 220 922 230 338
Interest received (1 454 247) (754 998)
Finance costs 12 581 104
Movements in operating lease assets and accruals - (89 347)
Changes in working capital:
Trade and other receivables 321 906 (617 210)
Trade and other payables 4 689 359 812 502
13 627 582 8 189 551
15. Tax paid
Balance at beginning of the year (89 268) 122 764
Current tax for the year recognised in profit or loss (2 747 796) (2 382 173)
Balance at end of the year 83 333 89 268
(2 753 731) (2 170 141)
16. Directors' remuneration
No emoluments were paid to the directors or any individuals holding a prescribed office during the year (2017 - Nil).
17. Related parties
Relationships
Holding company Southeast Bank Limited
Related party balances
Amounts included in Trade Payables regarding related parties
Southeast Bank Limited 8 411 117 3 756 765
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Revenue
Commissions and transaction fees 8 9 022 987 7 341 653
Exchange gain income 8 5 134 908 5 512 991
Online charges 8 652 997 -
14 810 892 12 854 644
Other income
Sundry income 9 - 27 060
Interest received 10 1 454 247 754 998
1 454 247 782 058
Expenses (Refer to page 486) (6 415 497) (5 028 436)
Operating profit 9 849 642 8 608 266
Finance costs 11 (12 581) (104)
Taxation 12 (2 747 796) (2 407 190)
485

Operating expenses
Accounting fees 99 529 162 747
Advertising 121 396 85 754
Assets under R 7 000 9 011 27 328
Auditors' remuneration 13 124 839 82 023
Bank charges 1 378 919 836 721
Cash carrying charges 1 057 594 1 030 793
Cleaning - 92
Commission paid 29 643 39 518
Computer expenses 3 521 11 151
Consulting fees 13 209 -
Depreciation 220 922 230 338
Employee cost 1 589 884 980 445
Entertainment 77 917 88 463
Gifts 454 3 900
Insurance 75 708 62 542
Lease rentals on operating lease 380 590 254 695
Loss on exchange differences 139 965 174 750
Motor vehicles expenses 1 917 -
Municipal expenses 34 669 31 010
Office expenses 74 849 58 580
Postage 13 674 21 182
Printing and stationery 198 039 176 733
Rates and taxes 2 330 1 970
Repairs and maintenance 65 788 50 925
Security 416 905 437 560
Staff welfare 980 1 130
Telephone and fax 105 664 56 761
Training 20 318 29 179
Travel - local 131 963 92 146
Travel - overseas 25 300 -
6 415 497 5 028 436
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Terminology
AD Authorized Dealer
ALCO Asset Liability Committee
ATM Automated Teller Machine
BB Bangladesh Bank (Central Bank of Bangladesh)
B/L Bad/Loss
BAS Bangladesh Accounting Standards
CRR Cash Reserve Requirement
CRG Credit Risk Grading
CSR Corporate Social Responsibility
CPI Consumer Price Index
CDBL Central Depository Bangladesh Limited
CBS Core Banking Software
CRISL Credit Rating and Information Services Ltd.
DEPZ Dhaka Export Processing Zone
DP Depository Participants
EPS Earnings Per Share
EPZ Export Processing Zone
FY Fiscal Year (July to June)
GDP Gross Domestic Product
GRI Global Reporting Initiative
HOB Head of Branch
IT Information Technology
IMF International Monetary Fund
IAS International Accounting Standards
IPO Initial Public Offering
LC Letter of Credit
SMT Senior Management Team
NII Net Interest Income
NIM Net Interest Margin
NPL Non Performing Loan
OBU Off shore Banking Unit
IR Integrated Reporting
POS Point of Sale
PV Present Value
RWA Risk Weighted Assets
RMG Readymade Garments
ROA Return on Assets
ROE Return on Equity
R&D Research and Development
SAFA South Asian Federation of Accountants
SME Small and Medium Enterprise
SOP Standard Operating Procedure
SLR Statutory Liquidity Ratio
RMA Relationship Management Application
SWIFT Society for Worldwide Interbank Financial Telecommunication
SEBCSL Southeast Bank Capital Service Limited
SEFSL Southeast Financial Services (UK) Limited
SEFSPL Southeast Financial Services (Australia) Pty Limited
SEECPL Southeast Exchange Company (South Africa) Pty Ltd
487
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Standard Disclosure
Checklist
SAFA Corporate Governance Disclosure Checklist 490-492
Integrated Reporting Checklist 493-501
SAFA Standard Disclosure Checklist 502-505
Important Financial Indicators with Quantitative and Qualitative Factors 506
489
SAFA Corporate Governance

Disclosure Checklist
Items Page No.
1. BOARD OF DIRECTORS, CHAIRMAN AND CEO
1.1 Company's policy on appointment of directors disclosed. 106

Adequate representation of non executive directors i.e. one third of the board, subject
1.2 107
to a minimum of two
At least one independent director on the board and disclosure/affirmation of the board
1.3 108
on such director’s independence.
1.4 Chairman to be independent of CEO 108-109
Responsibilities of the Chairman of the Board appropriately defined and disclosed.
1.5 108-109
Disclosure of independence of Non Executive Directors
Existence of a scheme for annual appraisal of the boards performance and disclosure
1.6 109
of the same.
1.7 Disclosure of policy on annual evaluation of the CEO by the Board. 113
Disclosure of policy on training (including details of the continuing training program)
1.8 of directors and type and nature of training courses organized for directors during the 109
year Existence of a scheme for annual appraisal of the boards performance
At least one director having thorough knowledge and expertise in finance and
1.9 accounting to provide guidance in the matters applicable to accounting and auditing 109
standards to ensure reliable financial reporting.
Disclosure of number of meetings of the board and participation of each director (at
1.10 120
least 4 meetings are required to be held)
Directors issue a report on compliance with best practices on Corporate Governance
1.11 119
that is reviewed by the external auditors
2. VISION / MISSION AND STRATEGY
Company’s vision / mission statements are approved by the board and disclosed in the
2.1 37
annual report.
2.2 Identification of business objectives and areas of business focus disclosed 38
2.3 General description of strategies to achieve the company’s business objectives 38-39
3. AUDIT COMMITTEES
3.1 Appointment and Composition 111, 148

Whether the Audit Committee Chairman is an independent Non-Executive Director
3.1.1 111, 148
and Professionally Qualified
Whether it has specific terms of reference and whether it is empowered to investigate
3.1.2 148
/ question employees and retain external counsel
3.1.3 More than two thirds of the members are to be Non Executive Directors 108
All members of the audit committee to be suitably qualified and at least one member
3.1.4 111
to have expert knowledge of finance and accounting.
3.1.5 Head of internal audit to have direct access to audit committee 111
The committee to meet at least four times a year and the number of meetings and
3.1.6 121
attendance by individual members disclosed in the annual report.
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Items Page No.
3.2 Objectives & Activities

Statement on Audit Committee’s review to ensure that internal controls are well
3.2.1
conceived properly administrated and satisfactorily monitored.
Statement to indicate audit committees role in ensuring compliance with Laws,
3.2.2
Regulations and timely settlements of Statutory dues
Statement of Audit committee involvement in the review of the external audit function
 Ensure effective coordination of external audit function
 Ensure independence of external auditors
 To review the external auditors findings in order to be satisfied that appropriate
3.2.3 action is being taken
 Review and approve any non-audit work assigned to the external auditor and 148-150
ensure that such work does not compromise the independence of the external
auditors.
 Recommend external auditor for appointment/ reappointment
Statement on Audit committee involvement in selection of appropriate accounting
3.2.4
policies that are in line will applicable accounting standards and annual review.
Statement of Audit Committee involvement in the review and recommend to the board
3.2.5
of directors, annual and interim financial releases
3.2.6 Reliability of the management information used for such computation
4. INTERNAL CONTROL AND RICK MANAGEMENT
4.1 Statement of Director's responsibility to establish appropriate system of internal control 103
Narrative description of key features of the internal control system and the manner in
4.2 151
which the system is monitored by the Board, Audit Committee or Senior Management.
Statement that the Director's have reviewed the adequacy of the system of internal
4.3 104
controls
Disclosure of the identification of risks the company is exposed to both internally &
4.4 152-153
externally
4.5 Disclosure of the strategies adopted to manage and mitigate the risks 152-153
5. Ethics and Compliance

Disclosure of statement of ethics and values, covering basic principles such as integrity,
5.1 41-42, 115
conflict of interest, compliance with laws and regulations etc.
Dissemination / communication of the statement of ethics & business practices to all
5.2 110, 115
directors and employees and their acknowledgment of the same
Board’s statement on its commitment to establishing high level of ethics and compliance
5.3 115
within the organization.
Establishing effective anti-fraud programs and controls, including effective protection
5.4 249
of whistle blowers, establishing a hot line reporting of irregularities etc.
6. REMUNERATION COMMITTEE
6.1 Disclosure of the charter (role and responsibilities) of the committee

Disclosure of the composition of the committee (majority of the committee should be
6.2
non-executive directors, but should also include some executive directors)
Disclosure of key policies with regard to remuneration of directors, senior management
6.3 232-233
and employees
6.4 Disclosure of number of meetings and work performed
Disclosure of Remuneration of directors, chairman, chief executive and senior
6.5
executives.
491
Items Page No.
7. HUMAN CAPITAL
Disclosure of general description of the policies and practices codified and adopted
by the company with respect of Human Resources Development and Management,
7.1 including succession planning, merit based recruitment, performance appraisal 246-248
system, promotion and reward and motivation, training and development, grievance
management and counseling.
7.2 Organizational Chart 48-49
8. Communication to Shareholders & Stakeholders

Disclosure of the Company's policy / strategy to facilitate effective communication with
8.1 258
shareholders and other stake holders
Disclosure of Company’s policy on ensuring participation of shareholders in the
8.2 Annual General Meeting and providing reasonable opportunity for the shareholder 118
participation in the AGM.
9. Environmental and Social Obligations
Disclosure of general description of the company's policies and practices relating to 118-119,
9.1
social and environmental responsibility of the entity 238
Disclosure of specific activities undertaken by the entity in pursuance of these policies 118-119,
9.2
and practices 238
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Integrated Reporting
Checklist
Items Page No.
1. Elements of an Integrated Report
1.1 Organizational overview and external environment
An integrated report should disclose the main activities of the organization and the
environment of which it operates.
An integrated report should identify the organization’s mission and vision, and provides
essential context by identifying matters such as:
The organization’s:
culture, ethics and values
ownership and operating structure including size of the organization, location of
its operations)
principal activities and markets
competitive landscape and market positioning (considering factors such as the
threat of new competition and substitute products or services, the bargaining
power of customers and suppliers, and the intensity of competitive rivalry)
position within the value chain
Key quantitative information
e.g., the number of employees, revenue and number of countries in which the
organization operates highlighting, in particular, significant changes from prior periods
Significant factors affecting the external environment and the organization’s response
(include aspects of the legal, commercial, social, environmental and political context 2-6, 42,
that affect the organization’s ability to create value in the short, medium or long 20-30
term)
Eg:
The legitimate needs and interests of key stakeholders
Macro and micro economic conditions, such as economic stability, globalization,

and industry trends
Market forces, such as the relative strengths and weaknesses of competitors and
customer demand
The speed and effect of technological change
Societal issues, such as population and demographic changes, human rights,

health, poverty, collective values and educational systems
Environmental challenges, such as climate change, the loss of ecosystems, and

resource shortages as planetary limits are approached
The legislative and regulatory environment in which the organization operates
The political environment in countries where the organization operates and

other countries that may affect the ability of the organization to implement its
strategy
493
Items Page No.

1.2 Governance
An integrated report should how does the organization’s governance structure support its
ability to create value in the short, medium and long term.
An integrated report needs to provide an insight about how such matters as the
following are linked to its ability to create value:
The organization’s leadership structure, including the skills and diversity (e.g.,
range of backgrounds, gender, competence and experience) of those charged
with governance and whether regulatory requirements influence the design of the
governance structure
Mandatory and voluntary code of corporate governance adopted by the Company.
Code of ethical conduct adopted by the Company in relation to ethical business.
Specific processes used to make strategic decisions and to establish and monitor 106-123,
the culture of the organization, including its attitude to risk and mechanisms for 125-135
addressing integrity and ethical issues
Particular actions those charged with governance have taken to influence and monitor
the strategic direction of the organization and its approach to risk management
How the organization’s culture, ethics and values are reflected in its use of and
effects on the capitals, including its relationships with key stakeholders
Whether the organization is implementing governance practices that exceed legal

requirements/ Key Policies
The responsibility those charged with governance take for promoting and enabling
innovation
How remuneration and incentives are linked to value creation in the short, medium
and long term, including how they are linked to the organization’s use of and effects
on the capitals.
1.3 Stakeholder Identification/ relationships
An integrated report should identify its key stakeholders and provide insight into the
nature and quality of the organization’s relationships with its key stakeholders, including
how and to what extent the organization understands, takes into account and responds
to their legitimate needs and interests. Stakeholders are the groups or individuals that can
reasonably be expected to be significantly affected by an organization’s business activities,
outputs or outcomes or whose actions can reasonably be expected to significantly affect
the ability of the organization to create value.
277
An entity may disclose the following in their integrated reports in respect of stakeholder
relationships.
How the company has identified its stakeholders.
Stakeholder engagement methodology.
Identification of material matters of stakeholders.
How the Company has applied such matters.
How the stakeholders are engaged in assessing impacts, implications and outlook
unrespects of Company’s business model.
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Items Page No.

Capitals
An integrated report needs to provide insight about the resources and the relationships
used and affected by the organization, which are referred to collectively as the capitals
and how the organization interacts with the capitals to create value over the short,
medium and long term
An integrated report need to identify the various forms of capitals which are essential for
the success of its business operations.
Eg:
Financial Capital – The pool of funds that is available to the organization for use in the
production of goods or provision of services.
Manufacturing Capital – Manufactured physical objects that are available to the

organization for use in the production of goods and provision of services. 277
Intellectual Capital – Organizational, Knowledge based intangibles.
Human Capital – People’s competencies, capabilities and experience, and their

motivations to innovate
Social and Relationship Capital – The institutions and the relationships within and
between communities, groups of stakeholders and other networks and the ability to
share information to enhance individual and collective wellbeing.
Natural Capital – All renewable and non-renewable environmental resources and

processes that provide goods and services that support the past, current and future
prosperity of the organization.
However an entity can do its own classification of capitals based on its business activities.
An entity needs to ensure that it does not overlook a capital that it uses or affects.
1.4 Business model
An integrated report should describe the organization’s business model

An integrated report need to describe the business model, including key:
Inputs
Business activities
Outputs
Outcomes
Features that can enhance the effectiveness and readability of the description of the
business model include: 34-35
Explicit identification of the key elements of the business model
A simple diagram highlighting key elements, supported by a clear explanation of the

relevance of those elements to the organization
Narrative flow that is logical given the particular circumstances of the organization
Identification of critical stakeholder and other (e.g., raw material) dependencies and
important factors affecting the external environment
Connection to information covered by other Content Elements, such as strategy, risks
and opportunities, and performance (including KPIs and financial considerations,
like cost containment and revenues).
495
Items Page No.

Inputs
An integrated report shows how key inputs relate to the capitals on which the
organization depends, or that provide a source of differentiation for the organization,
to the extent they are material to understanding the robustness and resilience of the
business model.
Business activities
An integrated report describes key business activities. This can include:
How the organization differentiates itself in the market place (e.g., through product
differentiation, market segmentation, delivery channels and marketing)
The extent to which the business model relies on revenue generation after the initial
point of sale (e.g., extended warranty arrangements or network usage charges)
How the organization approaches the need to innovate
How the business model has been designed to adapt to change.
When material, an integrated report discusses the contribution made to the

organization’s long term success by initiatives such as process improvement, employee
training and relationships management.
Outputs
34-35
An integrated report identifies an organization’s key products and services. There might
be other outputs, such as by-products and waste (including emissions), that need to be
discussed within the business model disclosure depending on their materiality.
Outcomes
An integrated report describes key outcomes, including:
Both internal outcomes (e.g., employee morale, organizational reputation, revenue

and cash flows) and external outcomes (e.g., customer satisfaction, tax payments,
brand loyalty, and social and environmental effects)
Both positive outcomes (i.e., those that result in a net increase in the capitals and
thereby create value) and negative outcomes (i.e., those that result in a net decrease
in the capitals and thereby diminish value).
Organizations with multiple business models
Some organizations employ more than one business model (e.g., when operating in
different market segments). This requires a distinct consideration of each material
business model as well as commentary on the extent of connectivity between the
business models (such as the existence of synergistic benefits).
The integrated report of an organization with multiple businesses needs to balance

disclosure with need to reduce complexity; however material information should not
be omitted.
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Items Page No.

1.5 Performance
An integrated report needs to explain the extent to which the organization has achieved
its strategic objectives for the period and what are its outcomes in terms of effects on the
capitals?
An integrated report should contain qualitative and quantitative information about

performance that may include matters such as:
Quantitative indicators with respect to targets and risks and opportunities, explaining
their significance, their implications, and the methods and assumptions used in
compiling them
The organization’s effects (both positive and negative) on the capitals, including
material effects on capitals up and down the value chain
The state of key stakeholder relationships and how the organization has responded 260
to key stakeholders’ legitimate needs and interests
The linkages between past and current performance, and between current
performance and the organization’s outlook.
KPIs that combine financial measures with other components (e.g., the ratio of
greenhouse gas emissions to sales) or narrative that explains the financial implications
of significant effects on other capitals and other causal relationships (e.g., expected
revenue growth resulting from efforts to enhance human capital) may be used to
demonstrate the connectivity of financial performance with performance regarding
other capitals. In some cases, this may also include monetizing certain effects on the
capitals (e.g., carbon emissions and water use).
Include instances where regulations have a significant effect on performance (e.g., a

constraint on revenues as a result of regulatory rate setting) or the organization’s non-
compliance with laws or regulations may significantly affect its operations.
1.6 Risks, opportunities and internal controls
An integrated report should explain what are the specific risks and opportunities that
affect the organization’s ability to create value over the short, medium and long term,
and how is the organization dealing with them? and effectiveness of the system of internal
controls.
This can include identifying:
The specific source of risks and opportunities, which can be internal, external or,
commonly, a mix of the two.
206-233
The organization’s assessment of the likelihood that the risk or opportunity will come
to fruition and the magnitude of its effect if it does.
The specific steps being taken to mitigate or manage key risks (eg: Risk Management
Framework, Risk Management review process and reporting structure) or to create
value from key opportunities, including the identification of the associated strategic
objectives, strategies, policies, targets and KPIs.
Risk Management Report (Which includes details about risk, root course, potential
impact, response to risk, risk rating)
Response on the effectiveness of the internal controls and the board’s responsibility
for the disclosures on internal controls to safeguard stakeholder interest.
497
Items Page No.

1.7 Strategy and resource allocation
An integrated report should describe it strategic direction (Where does the organization
want to go and how does it intend to get there)
An integrated report need to identify:
The organization’s short, medium and long term strategic objectives
The strategies it has in place, or intends to implement, to achieve those strategic

objectives
How the entity has positioned in the wider market.
How the long term strategies relate to current business model.
The resource allocation plans it has to implement its strategy
How it will measure achievements and target outcomes for the short, medium and
long term.
This can include describing:

38-39
The linkage between the organization’s strategy and resource allocation plans, and
the information covered by other Content Elements, including how its strategy and
resource allocation plans:
relate to the organization’s business model, and what changes to that business
model might be necessary to implement chosen strategies to provide an
understanding of the organization’s ability to adapt to change
are influenced by/respond to the external environment and the identified risks
and opportunities affect the capitals, and the risk management arrangements
related to those capitals
What differentiates the organization to give it competitive advantage and enable it to

create value, such as:
the role of innovation

how the organization develops and exploits intellectual capital
the extent to which environmental and social considerations have been
embedded into th organization’s strategy to give it a competitive advantage
Key features and findings of stakeholder engagement that were used in formulating
its strategy and resource allocation plans.
498
a bank with vision
Items Page No.

1.8 Outlook
An integrated report should explain what challenges and uncertainties is the organization
likely to encounter in pursuing its strategy, and what are the potential implications for its
business model and future performance?
An integrated report should highlight anticipated changes over time and provides
information on
The organization’s expectations about the external environment the organization is
likely to face in the short, medium and long term
How that will affect the organization
How the organization is currently equipped to respond to the critical challenges and
uncertainties that are likely to arise.
The discussion of the potential implications, including implications for future financial
performance may include: 77-93
The external environment, and risks and opportunities, with an analysis of how
these could affect the achievement of strategic objectives
The availability, quality and affordability of capitals the organization uses or affects
(e.g., the continued availability of skilled labour or natural resources), including how
key relationships are managed and why they are important to the organization’s
ability to create value over time.
An integrated report may also provide lead indicators, KPIs or objectives, relevant
information from recognized external sources, and sensitivity analyses. If forecasts or
projections are included in reporting the organization’s outlook, a summary of related
assumptions is useful. Comparisons of actual performance to previously identified
targets further enables evaluation of the current outlook.
Disclosures about an organization’s outlook in an integrated report should consider the

legal or regulatory requirements to which the organization is subject.
1.9 Basis of preparation and presentation
An integrated report should answer the question: How does the organization determine
what matters to include in the integrated report and how are such matters quantified or
evaluated?
An integrated report describes its basis of preparation and presentation, including:
A summary of the organization’s materiality determination process

Brief description of the process used to identify relevant matters, evaluate their
importance and narrow them down to material matters
31-33
Identification of the role of those charged with governance and key personnel in
the identification and prioritization of material matters
A description of the reporting boundary and how it has been determined

Eg:Include process used for identifying the reporting boundary, geographic scope,
the entities represented in the report and the nature of the information provided
for each entity
A summary of the significant frameworks and methods used to quantify or evaluate

material matters
(e.g., the applicable financial reporting standards used for compiling financial
information, a company-defined formula for measuring customer satisfaction, or
an industry based framework for evaluating risks).
499
Items Page No.

2. Responsibility for an integrated report
An integrated report should include a statement from those charged with governance
that includes:
An acknowledgement of their responsibility to ensure the integrity of the integrated

report
An acknowledgement that they have applied their collective mind to the preparation
and presentation of the integrated report
Their opinion or conclusion about whether the integrated report is presented in
accordance with the Framework 31-33
or, if it does not include such a statement , it should explain:
What role those charged with governance played in its preparation and presentation
What steps are being taken to include such a statement in future reports
The time frame for doing so, which should be no later than the organization’s third
integrated report that references this Framework.
3. Other Qualitative Characteristics of an Integrated Report
3.1 Conciseness
An integrated report should be concise.
An integrated report need to include sufficient context to understand the organization’s
strategy, governance, performance and prospects without being burdened with less
relevant information.
Eg:
Follows logical structure and includes internal cross-reference as appropriate to limit 31-33
repetition.
May link to more detailed information, information that does not change frequently or
external sources.
Express concepts clearly and in as few words.
Favours plain language over the use of jargon or highly technical terminology.
Avoids highly generic disclosures.
3.2 Reliability and completeness
An integrated report should include all material matters, both positive and negative, in
a balanced way and without material error
The organization achieve the reliability and completeness through,
Eg :
31-33
Selection of presentation formats that are not likely to unduly or inappropriately
influence assessments made on the basis of integrated report.
Giving equal consideration to both increases and decreases in the capitals,
both strengths and weaknesses of the organization, both positive and negative
performance etc.
When information includes estimates, this is clearly communicated and the
nature and limitations of the estimation process are explained.
500
a bank with vision
Items Page No.

3.3 Consistency and comparability
The information in an integrated report should be presented:
On a basis that is consistent over time
In a way that enables comparison with other organizations to the extent it is material
to the organization’s own ability to create value over time.
Eg:
Using benchmark data, such as industry or regional benchmarks
Presenting information in the form of ratios (e.g., research expenditure as a

percentage of sales, or carbon intensity measures such as emissions per unit of 260-264
output)
Reporting quantitative indicators commonly used by other organizations with

similar activities, particularly when standardized definitions are stipulated by an
independent organization (e.g., an industry body).
Reporting policies are followed consistently from one period to other unless a
change is needed to improve the quality of information reported.
Reporting the same KPIs if they continue to be material across reporting period.
When a significant change has been made, the organization explains the reasons
for the change describing its effect.
3.4 Connectivity of information
An integrated report should show a holistic picture of the combination, interrelatedness

and dependencies between the factors that affect the organization’s ability to create
value over time.
Eg: Connectivity between – Capitals 31-33

Content elements
Past , Present & Future
Finance and other information
3.5 Materiality
An integrated report should disclose information about matters that substantively 31-33
affect the organization’s ability to create value over the short, medium and long term
3.6 Assurance on the Report
The policy and practice relating to seeking assurance on the report,

the nature and scope of assurance provided for this particular report 31-33
any qualifications arising from the assurance, and the nature of the relationship
between the organization and the assurance providers
501
SAFA Standard
Disclosure Checklist
Disclosure checklist to the key sections of the Annual Report – 2018
Items Page No.

Corporate Objectives, Values & Structure
Clarity and presentation:
Vision and Mission 37
Overall strategic objectives 38
Core values and code of conduct/ethical principles 41-43
Profile of the Company 44-45
Director’s profiles and their representation on Board of other companies & Organization 60-71, 423,
Chart 48-49
Management Report/ Commentary and analysis including Director’s Report / Chairman’s
Review/CEO’s Review etc.
A general review of the performance of the company 20-25
Description of the performance of the various activities/products/segments of the
company and its group companies during the period under review. 2-7, 26-30
(Weightage to be given for pictorial/graphical / tabular presentations used for this purpose)
A brief summary of the Business and other Risks facing the organization and steps taken
206-233
to effectively manage such risks
A general review of the future prospects/outlook. 17
Information on how the company contributed to its responsibilities towards the staff
294
(including health & safety)
Information on company's contribution to the national exchequer & to the economy 296
Sustainability Reporting
Social Responsibility Initiatives ( CSR) 238-239
Environment related Initiatives 243-244
Environmental & Social Obligations 245
Integrated Reporting 31-33
Appropriateness of Disclosure of Accounting policies and General Disclosure
Disclosure of adequate and properly worded accounting policies relevant to assets,
liabilities, Income and expenditure in line with best reporting standards.
Any Specific accounting policies
Impairment of Assets 353-423
Changes in accounting policies/Changes in accounting estimates
Accounting policy on subsidiaries (if there is no any subsidiary, full marks should be granted)
Segment Information
Comprehensive segment related information bifurcating Segment revenue, segment
results and segment capital employed
Availability of information regarding different segments and units of the entity as well as
non-segmental entities/units
Segment analysis of
269,
Segment Revenue
441-442
Segment Results
Turnover
Operating profit
Carrying amount of Net Segment assets
502
a bank with vision
Items Page No.

Financial Statements (Including Formats)
Disclosures of all contingencies and commitments 403
Comprehensive related party disclosures 414-415
Disclosures of Remuneration & Facilities provided to Directors & CEO 407-408
Statement of Financial Position / Balance Sheet and relevant schedules 348
Income Statement / Profit and Loss Account and relevant schedules 350
Statement of Changes in Equity / Reserves & Surplus Schedule 352
Disclosure of Types of Share Capital 397
Statement of Cash Flow 351
Consolidated Financial Statement (CFS) 344
Extent of compliance with the core IAS/IFRS or equivalent National Standards 354
Disclosures / Contents of Notes to Accounts 353
Information about Corporate Governance
Board Of Directors, Chairman And CEO 106
Audit Committee (Composition, role, meetings, attendance, etc) Internal Control & Risk
148-153
Management
Ethics And Compliance 72, 110,
232
Remuneration and other Committees of Board 120-121
Human Capital 246-248
Communication To Shareholders & Stakeholders
Information available on website 256-283
Other information
Management Review And Responsibility 159-204
Disclosure by Board of Directors or Audit Committee on evaluation of quarterly reports 154
Any other investor friendly information 258-259
Risk Management & Control Environment
Description of the Risk Management Framework 206-233
Risk Mitigation Methodology 206-233
Disclosure of Risk Reporting 224-227
Stakeholders Information
Distribution of shareholdering (Number of shares as well as category wise, e.g Promoter
274
group, FII etc)
Shares held by Directors/Executives and relatives of Directors/Executives 274
Redressal of investors complaints 256-257
Graphical/ Pictorial Data: 270-275
Earnings per Share
Net Assets
Stock Performance 2, 270-273
Shareholders’ Funds
Return on Shareholders Fund
503
Items Page No.

Horizontal/Vertical Analysis including following. Operating Performance (Income Statement)
Total Revenue
Operating profit
Profit Before Tax 263-268
Profit after Tax
EPS
Statement of Financial Position (Balance Sheet)
Shareholders Fund
Property Plant & Equipment
263-268
Net Current Assets
Long Term Liabilities/Current Liabilities
Profitability/Dividends/ Performance and Liquidity Ratios
Net Interest income Ratio
Profit before provisions and Tax
Price earnings ratio
260-262
Capital Adequacy Ratio
Return on Capital Employed
Debt Equity Ratio
Statement of Value Added and Its Distribution
Government as Taxes
Shareholders as dividend
Employees as bonus/remuneration
251-253
Retained by the entity
Market share information of the Company’s product/services
Economic value added
Presentation of Financial Statements
Quality of the Report/ Layout of Contents
Cover and printing including the theme on the cover page
Appropriateness and effectiveness of photographs and their relevance
Effectiveness of Charts and Graphs
Clarity, simplicity and lucidity in presentation of Financial Statements
Timeliness in issuing Financial Statements and holding AGMs
3 months time to produce the Annual Report and hold AGM are considered reasonable
for full marks
Delay after the initial period of 3 months - deduction of 2 marks is to be made for each
month
If the period is over 6 months – no marks shall be awarded
Additional Disclosures
246-248
Human Resource Accounting
Specific Areas for Banking Sector
Disclosure of Ratings given by various rating agencies for the Bank and for its Instruments
199
issued by /of Bank. For eg. FD, CD, Tier I and Tier 11 Bonds
Details of Advances portfolio Classification wise as per the direction issued by the central
381-384
bank of the respective countries
504
a bank with vision
Items Page No.

Disclosure for Non Performing assets
Movements in NPA
Sector-wise breakup of NPA 202-204
Movement of Provisions made against NPA
Details of accounts restructured as per regulatory guidelines
Maturity Pattern of Key Assets and Liabilities (ALM)
Classification and valuation of investments as per regulatory guidelines/Accounting
418
Standards
Business Ratio/Information
Statutory Liquidity Reserve (Ratio)
Net interest income as a percentage of working funds / Operating cost - Efficiency ratio
Return on Average Asset
Cost / Income ratio
Net Asset Value Per Share
Profit per employee 260-262
Capital Adequacy ratio
Cost of Funds
Cash Reserve Ratio / Liquid Asset ratio
Dividend Cover ratio
Gross Non-Performing assets to gross advances / Non-Performing Loans (Assets) to
Total Loans (Assets
Details of credit concentration / Sector vise exposures
The break-up of ‘Provisions and contingencies’ included in the Profit and Loss Account 394, 403,
409
Disclosure under regulatory guidelines 355
Details of Non-Statutory investment portfolio 377-380
Disclosure in respect of assets given on operating & finance lease 396
Disclosures for derivative investments 377-380
Bank's Network : List of Centers or Branches 305-319
505
Important Financial Indicators with

Quantitative and Qualitative Factors
Area Key Components Page No.
Capital Adequacy Ratio (CAR) 260
Internal Capital Generation Ratio 196
1. Capital Adequacy
Leverage ratio 231
Capital Conservation Buffer 220
Gross Non-Performing Loan (NPL) Ratio 203
Net Non-Performing Loan (NPL) Ratio 203
Gross Non-Performing Loan (NPL) Coverage 203
2. Asset Quality
Large Loan Exposure 421
SME Portfolio Concentration Ratio 164
Corporate Portfolio Concentration Ratio 224
Return on Average Assets (ROAA) 262
Return on Average Equity (ROAE) 262
3. Profitability
Return on Average Risk Weighted Assets (RRWA) 2
Net Interest Margin (NIM) 7
Liquid Assets Ratio 372
Loan to Deposit Ratio 163
4. Liquidity & Funding
Liquidity Coverage Ratio (LCR) 230
Net Stable Funding Ratio 230
Dividend yield 7
5. Performance with respect
Net Asset Value (Growth) 50
to shareholders
Capital Appreciation 219
6. External Credit Rating Short Term 199
(ECA) Long Term 199
Number of Branches 305
Number of ATMs 313
7. Financial Inclusion and IT Apps based Services 190
based services Internet Banking 192
Cash Deposit Machines (CDM) 191
Call Centers Services 290
Non Shareholding/Independent Director 122
Single Family Domination 123
Free Float 123
8. Corporate Governance
Audit Committee Led by Independent Director 148
Director's Minimum Shareholding 274
Auditors' Opinion 338
Sustainable Financing/ Green Banking Initiatives 245
9. Care for Environment
Sustainable/Integrated Reporting 31
Net Employee Turnover 6
Employee Compensation and Benefits 294
10. Employee Focus
Gender Diversity 247
Training and Development Spending 295
11. Corporate Social Amount of CSR Expenditure 239
Responsibility (CSR) Quality of CSR Activities 238
12. Contribution to National
Direct and Indirect Tax 296
Exchequer
506
a bank with vision
Events 2018
507
508
a bank with vision
509
510
a bank with vision
511
512
Note
Registered Office: 52-53, Dilkusha C/A, Dhaka-1000
PROXY FORM
I/We……………………………………………....……………............................................................…………..…of…………..............………………………………..
............................…………...............……………………………………. being a member of Southeast Bank Limited, do hereby appoint Mr./
Mrs.…………………………………...................…………….of……………………………. as my/our proxy to attend and vote on my/our behalf
at the 24th Annual General Meeting of the company to be held on June 23, 2019 and at any adjournment thereof.
As witness my/our hand this …………………day of ……………….. 2019.
……………………………….... .……………………….
Signature of Shareholder(s) Signature of PROXY
No. of Shares held…………………………………….. Revenue Folio/BOID #
Stamp
Tk.20.00
Folio No.
Or
BO ID No.
Note: i. Signature of the shareholders must agree with the recorded signature registered with the company/depository
participant(s).
ii. A Member entitled to attend and vote at the 24th AGM may appoint a proxy to attend and vote on his/her behalf.
The Proxy Form duly stamped must be deposited at the Registered Office of the Company at least 48 hours
before the time fixed for meeting.
Signature Verified
……………………………..
Proxy Reg. No ………………………………………………..
Authorized Signatory
Registered Office: 52-53, Dilkusha C/A, Dhaka-1000
ATTENDANCE SLIP
I/We hereby record my/our attendance at the 24th Annual General Meeting being held today, the Sunday, June 23,
2019 at 11.00 a.m. at Officers’ Club Dhaka, 26 Baily Road, Ramna, Dhaka.
Name of the Shareholder(s) /

Proxy (in Block Letters)
No. of Shares
Folio No.
BO ID No.
Name of the Proxy (If any)
……………………………….............................…… ………….............……………….
Signature of Shareholder(s)/Proxy Signature verified by
IMPORTANT : To facilitate registration formalities at the meeting place, shareholder(s) are requested to bring the attendance slip duly
filled in.
N.B. : General Meeting can only be attended by the honorable shareholders or properly constituted Proxy/Attorney.
Therefore, any friend or child accompanying the honorable shareholders or proxies can not be allowed into the
Meeting.

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Committed to

At Southeast Bank Limited we continuously design and align our

Total Assets Total Loans and Advances

Profit before Provision Profit after Tax

Earnings per Share (EPS) Return on Assets (RoA)

Total Capital to Risk Weighted Return on Average Risk Weighted

Number of Deposit Customers Size of Loan Customers

Number of Cardholders Number of Women Entrepreneurs

Number of Branches Number of Foreign Correspondents

Number of Employees Number of Shareholders

Number of Loans Disbursed Number of New Remittance

97.21 96.75 97.13 97.09 97.10

2.79 2.87 2.91 2.90

Market Share of SEBL Deposit (in percent)

2.73 2.65 2.56 2.87 2.95

2014 2015 2016 2017 2018

Per Employee Cost (BDT in million) Number of Internet Banking

Accounts Opened Trend

151,142 138,416 177,260 131,706 149,565

2014 2015 2016 2017 2018

D) IN TERMS OF QUALITY SERVICE

Number of Accounts Closed or Average Number of Service Drop

2014 2015 2016 2017 2018 2015 2016 2017 2018

Average Number of Customer

2015 2016 2017 2018

Customer Satisfaction Level with Customer Satisfaction Level

Average Time Taken to Respond to Employee Turnover Rate

Number of Employees Received New

2014 2015 2016 2017 2018

Revenue Provision for Credit Losses Operating Expenses

2016 2017 2018 2016 2017 2018 2016 2017 2018

Net Revenue Earnings per Share Dividend per Share

2016 2017 2018 2016 2017 2018 2016 2017 2018

2016 2017 2018

Southeast Bank won “Silver Award” for Corporate Governance Excellence

2014 2013 2011 2010

1995 1999 2000 2002

2007 2005 2004

VISION AND MISSION

DIRECTORS’ REPORT 77-93

Senior Management Team 94-95

CORPORATE GOVERNANCE 103-154

Report of the Bank’s Shariah Supervisory Committee 155-156

MANAGEMENT REVIEW, RESPONSIBILITY AND EVALUATION 159-204

RISK MANAGEMENT AND CONTROL FRAMEWORK

COMMUNICATION TO SHAREHOLDERS & STAKEHOLDERS 256-283

STANDARD DISCLOSURES CHECKLIST 490-506

All Shareholders of Southeast Bank Limited,

Letter of Bangladesh Bank,

Transmittal The Registrar of Joint Stock Companies and Firms,

Annual Report of Southeast Bank Limited for

Thank you for supporting us in the preceding years.

A.K.M. Nazmul Haider

Southeast Bank Limited

Venue: Officers’ Club Dhaka

By order of the Board

Dated: Dhaka A.K.M. Nazmul Haider

a) The “Record Date” was on Thursday, May 23, 2019.

Message from the